STRATEC POSTS RESULTS FOR FIRST HALF OF 2024

STRATEC POSTS RESULTS FOR FIRST HALF OF 2024

• Considerably improved business dynamics in second quarter (sales Q2/2024: constant currency +5.3%); sales in H1/2024: constant currency -4.9% to € 119.1 million (H1/2023: € 125.0 million)
• Adjusted EBIT margin of 9.6% in Q2/2024 (Q2/2023: 4.9%); adjusted EBIT margin in H1/2024 improves by 260 basis points to 8.2% (H1/2023: 5.6%)
• Well-filled development pipeline, major progress with development cooperations, and promising contract negotiations
• 2024 guidance confirmed: Sales on a constant-currency basis expected to remain stable or grow slightly with adjusted EBIT margin of around 10.0% to 12.0%

Birkenfeld, August 9, 2024

STRATEC SE, Birkenfeld, Germany, (Frankfurt: SBS; Prime Standard, SDAX) today announced its financial results and major events for the period from January 1, 2024 to June 30, 2024 with the publication of its Half-Year Financial Report H1|2024.

KEY FIGURES ¹

€ 000s H1/2024 H1/2023 Change Q2/2024 Q2/2023 Change Sales 119,076 125,006 -4.7%
(cc: -4.9%) 68,205 64,528 +5.7%
(cc: +5.3%) Adj. EBITDA 17,318 13,897 +24.6% 10,473 6,605 +58.6% Adj. EBITDA margin (%) 14.5 11.1 +340 bps 15.4 10.2 +520 bps Adj. EBIT 9,715 6,965 +39.5% 6,570 3,149 +108.6% Adj. EBIT margin (%) 8.2 5.6  +260 bps 9.6 4.9 +470 bps Adj. consolidated net income 5,479 4,060 +35.0% 4,253 1,927 +120.7% Adj. earnings per share (€) 0.45 0.33 +36.4% 0.35 0.15 +133.3% Earnings per share (€) 0.32 0.20 +60.0% 0.29 0.09 +222.2%

Adj. = adjusted
bps = basis points
cc = constant currency
¹ To facilitate comparison, figures have been adjusted to exclude amortization resulting from purchase price allocations in the context of acquisitions and other non-recurring items (including advisory expenses and restructuring expenses relating to M&A activities, as well as one-off personnel expenses).

BUSINESS PERFORMANCE
Following a subdued start to the year, from spring 2024 the STRATEC Group witnessed a considerable revival in its business performance and, by the half-year reporting date, had made up for part of the shortfall in sales seen in the first quarter (sales Q2/2024: +5.7%; at constant currency: +5.3%). Consolidated sales for the first half of 2024 therefore amounted to € 119.1 million (H1/2023: € 125.0 million), falling 4.9% short of the previous year’s figure on a constant-currency basis (nominal: -4.7%). The Natech Group, which was consolidated for the first time as of July 1, 2023, contributed sales of € 6.8 million. The restrained sales performance in the first half of 2024 particularly reflects demand levels in the molecular diagnostic systems business which, as expected, remained subdued. This was due on the one hand to the sharp expansion in laboratory capacities during the pandemic, as well as to the start-up curve for a product newly launched onto the market turning out to be less dynamic than expected. In addition, system deliveries originally planned for June have been postponed to the second half of the year. As a result, Systems sales fell by 34.4% on a constant-currency basis (nominal: -34.2%) to € 35.8 million in the first half of 2024 (H1/2023: € 54.4 million). By contrast, constant-currency sales with Service Parts and Consumables showed significant growth of 17.5% (nominal: +17.7%) to € 52.3 million (H1/2023: € 44.4 million). This positive sales performance was driven both by the acquisition of the Natech Group and by the significant extension in the installed systems base in recent years, as well as by rising utilization levels among end customers. Given the achievement of major development milestones and the realization of associated sales, constant-currency sales with Development and Services grew by 18.9% (nominal: +18.8%) to € 30.4 million (H1/2023: € 25.5 million).

CONSOLIDATED SALES BY OPERATING DIVISION

€ 000s H1/2024 H1/2023 Change Constant-currency
change Analyzer systems 35,795 54,418 -34.2% -34.4% Service Parts and Consumables 52,254 44,403 +17.7% +17.5% Development and Services
(including pre-series systems) 30,354 25,544 +18.8% +18.9% Other 673 641 +5.0% +4.8% Consolidated sales 119,076 125,006 -4.7% -4.9%

Adjusted EBIT amounted to € 9.7 million in the first half of 2024, compared with € 7.0 million in the previous year’s period. The adjusted EBIT margin came to 8.2% (H1/2023: 5.6%) and thus rose by 260 basis points compared with the previous year’s period. This key figure benefited in particular from measures within the earnings enhancement program initiated in 2023, as well as from an improved sales mix with a higher share of Service Parts and Consumables. Moreover, expenses for the currency translation of asset items were lower than in the previous year.

Given the higher level of operating earnings and a lower adjusted tax rate, adjusted consolidated net income for the first half of 2024 grew from € 4.1 million to € 5.5 million. Adjusted earnings per share (basic) amounted to € 0.45 (H1/2023: € 0.33).

For comparison purposes, the earnings figures for the first half of 2024 have been adjusted to exclude amortization resulting from purchase price allocations in the context of acquisitions and other non-recurring items (including advisory expenses and restructuring expenses relating to M&A activities, as well as one-off personnel expenses). A reconciliation of the adjusted figures with those reported in the consolidated statement of comprehensive income can be found in the Half-Year Financial Report H1|2024 also published today.

FINANCIAL GUIDANCE FOR 2024
Given that customers are now finalizing their measures to optimize stocks and in light of the slight recovery in end customer demand, since spring of this year STRATEC has observed a slight revival in market dynamism. In view of this and based on updated orders and order forecasts received from customers, as well as earnings enhancement measures already implemented in some cases and otherwise being upheld, STRATEC confirms its financial guidance for the 2024 financial year. Overall, STRATEC expects its 2024 consolidated sales to remain stable or grow slightly compared with the previous year on a constant-currency basis. The adjusted EBIT margin is still forecast without amendment at a level of around 10.0% to 12.0% (2023: 10.3%).

Due to the diverse downstream effects of the pandemic, customers’ order behavior continues to be marked by an elevated if noticeably declining level of volatility. As a result, STRATEC’s planning for 2024 continues to be subject to greater uncertainties than those observable prior to the pandemic.

For the 2024 financial year, STRATEC has planned investments in property, plant and equipment and intangible assets corresponding to a total of 6.0% to 8.0% of sales (2023: 6.7%).

PROJECTS AND OTHER DEVELOPMENTS
Together with its partners, STRATEC pressed further ahead with numerous developments and projects once again in the first half of 2024, while also concluding new agreements for new cooperations. One example worth mentioning here is the achievement of the concluding development milestone for customer products in the field of transfusion diagnostics. Given promising negotiations concerning new cooperations and the well-filled development pipeline, which includes numerous projects in various stages of development, major market launches can be expected in the coming months and years as well.

DEVELOPMENT IN PERSONNEL
Including personnel hired from employment agencies and trainees, the STRATEC Group had a total of 1,464 employees as of June 30, 2024. Excluding employees at the Natech Group, which was consolidated for the first time as of July 1, 2023, this represents an organic reduction in the workforce of 9.6% compared with the previous year’s reporting date (employees as of June 30, 2023: 1,512). This reduction is to be viewed in connection with the earnings enhancement program initiated in 2023.

HALF-YEAR FINANCIAL REPORT H1|2024
The Half-Year Financial Report H1|2024 of STRATEC SE has been published on the company’s website at www.stratec.com/financial_reports.

CONFERENCE CALL AND AUDIO WEBCAST
To mark the publication of the results for the first six months of 2024, STRATEC will be holding a conference call in English at 2.00 p.m. (CEST) today, Friday, August 9, 2024.

You will receive the dial-in data (telephone number, password + individual PIN) following brief registration at the following link: www.stratec.com/registration

The conference call will also be available at the same time as an audio webcast at http://www.stratec.com/audiowebcast20240809 (brief registration required). Please note that no questions can be submitted via the audio webcast. Clicking this link also enables you to follow or download the slide presentation.

ABOUT STRATEC
STRATEC SE (www.stratec.com) designs and manufactures fully automated analyzer systems for its partners in the fields of clinical diagnostics and life sciences. Furthermore, the company offers complex consumables for diagnostic and medical applications. For its analyzer systems and consumables, STRATEC covers the entire value chain – from development to design and production through to quality assurance.

The partners market the systems, software, and consumables in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. STRATEC develops its products on the basis of patented technologies.

Shares in the company (ISIN: DE000STRA555) are traded in the Prime Standard segment of the Frankfurt Stock Exchange and are listed in the SDAX select index of the German Stock Exchange.

FURTHER INFORMATION IS AVAILABLE FROM:
STRATEC SE
Jan Keppeler, CFA | Investor Relations, Sustainability & Corporate Communications
Tel: +49 7082 7916-6515
ir@stratec.com
www.stratec.com