Stratec (SBS) Investor Presentation summary

Company overview and market position

• Leading OEM provider of automation solutions for diagnostics and translational research, with 1,500 employees and global production sites.

• Installed base includes around 15,000 medium/high and 40,000 low throughput systems worldwide.

• Sales reached €261.9 million in 2023, with a 14% CAGR since IPO; 2023 sales split: 44% systems, 37% service parts/consumables, 19% development/services.

• Operates in fast-growing IVD market segments, focusing on high-complexity and high-growth areas like molecular diagnostics and immunodiagnostics.

• Maintains strong, long-term relationships with top global IVD companies, including several industry leaders.

Business model and revenue streams

• Provides instrumentation, consumables, software, and automation solutions as an OEM, manufacturing around 10,000 analyzer systems annually.

• Revenue model includes milestone payments during development, recurring sales from service parts and consumables, and long-term contracts.

• Recurring revenue is strong, with service parts and consumables accounting for 37% of 2023 sales, supported by a growing installed base.

• Benefits from industry trend toward outsourcing instrumentation development, leveraging its technology pool and regulatory expertise.

Financial performance and key figures

• 9M 2024 sales declined 6.0% yoy at constant currency to €176.3 million, mainly due to lower demand for molecular diagnostics and postponed deliveries.

• Adjusted EBIT margin for 9M 2024 was 8.4%, slightly down from 8.6% in 2023; efficiency measures are starting to show positive effects.

• Free cash flow improved to €13.0 million in 9M 2024, driven by reduced receivables and lower tax payments, despite high inventory levels.

• Net debt stood at €119.4 million with a net debt/LTM EBITDA ratio of 3.1x; equity ratio at 50.5%.

• Sales by division in H1 2024: systems down 34.2%, service parts/consumables up 17.7%, development/services up 18.8%.