1. Strattec is like Bosch, but specializing in the crucial locks, keys, and electronic access systems that secure and start most major car brands.

2. Strattec is like Qualcomm for the auto industry, but instead of smartphone chips, they are a leading supplier of the physical and electronic security and access systems for vehicles.

3. Strattec is like the 'Intel Inside' for vehicle access, making the mechanical and electronic lock and key systems that major car brands use.

• Mechanical Lock and Key Sets: Traditional physical lock cylinders and matching keys for vehicle access and ignition.
• Ignition Lock Cylinders: Components that secure the vehicle's ignition system, preventing unauthorized starting.
• Handles and Latches: Interior and exterior door handles, trunk handles, and the corresponding latch mechanisms for securing vehicle closures.
• Electronic Access Control Systems: Systems like Remote Keyless Entry (RKE) and Passive Entry Passive Start (PEPS) for convenient keyless vehicle access and ignition.
• Power Closure Systems: Automated mechanisms for power sliding doors and power liftgates, enhancing convenience and accessibility.

Strattec Security Corporation (STRT) primarily sells its products to other companies, specifically automotive Original Equipment Manufacturers (OEMs).

Its major customers, as identified in its financial filings, are:

• General Motors (symbol: GM)
• Ford Motor Company (symbol: F)
• Stellantis N.V. (symbol: STLA)

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Jennifer L. Slater, President and Chief Executive Officer

Jennifer L. Slater was appointed President and Chief Executive Officer of STRATTEC in July 2024. She brings over 25 years of experience in the automotive industry, encompassing general management, engineering, finance, sales, and strategy. Prior to joining STRATTEC, Ms. Slater served as Executive Vice President and General Manager, Performance Sensing, at Sensata Technologies, Inc., where she led a significant transformation of the business to an electrified product and systems focus. She also held the position of Group Vice President and General Manager, Global Original Equipment and Products at Clarios, LLC, overseeing global new product strategies and original equipment customers. Earlier in her career, Ms. Slater spent 11 years at Johnson Controls International plc, holding various senior finance roles, including Vice President Finance, Power Solutions. Her career demonstrates a pattern of managing companies that include publicly traded, privately held, and those backed by private equity owners. Ms. Slater is a director for Valvoline Inc. and a member of the MEMA OE Suppliers Board.

Matthew Pauli, Senior Vice President, Chief Financial Officer

Matthew Pauli joined STRATTEC as Senior Vice President and Chief Financial Officer in November 2024. He has over 24 years of financial expertise. Most recently, Mr. Pauli served as Executive Advisor and CFO of CentroMotion, a global manufacturer of highly engineered products, where he was responsible for global finance, tax, treasury, accounting, IT, and legal operations. His experience at CentroMotion, described as a "growing portfolio of highly respected brands" that includes private companies, indicates a background with privately held or private equity-backed entities. Before CentroMotion, he held senior finance roles at Enerpac (NYSE: EPAC), including Corporate Controller/Chief Accounting Officer and Vice President, Finance. Mr. Pauli began his career at Ernst & Young.

Rolando J. Guillot, Senior Vice President, Chief Operations Officer

Rolando J. Guillot has been a key leader at STRATTEC since joining in 1996, progressing through various management roles within the company. He served as Vice President of Mexican Operations, General Manager of Mexican Operations, and Plant Manager at STRATTEC de Mexico. Mr. Guillot was elected Senior Vice President of Operations in December 2016, overseeing all of the company's operations, and was promoted to Chief Operations Officer in March 2023. He also served as interim President and Chief Executive Officer from January 1, 2024, until July 1, 2024.

Chey Becker-Varto, Chief Commercial Officer

Chey Becker-Varto joined STRATTEC as Chief Commercial Officer in November 2024.

Richard P. Messina, Vice President, Chief Technology Officer

Richard P. Messina has served as STRATTEC's Vice President and Chief Technology Officer since June 2023. He previously held the title of Vice President, Global Engineering.

The widespread adoption of digital key technologies, such as those promoted by the Car Connectivity Consortium (CCC) Digital Key standard, represents a clear emerging threat. These technologies enable smartphones to function as primary vehicle keys using short-range wireless technologies like Near Field Communication (NFC) and Ultra-Wideband (UWB).

This trend could significantly reduce the demand for traditional physical keys, ignition lock cylinders, and dedicated remote key fobs, which constitute a substantial portion of Strattec's current product portfolio. As automotive manufacturers increasingly integrate smartphone-based access solutions as primary entry and start systems, the relevance and volume of Strattec's established hardware offerings may decline.

Strattec Security Corporation (STRT) operates in the automotive industry, providing a range of access, security, and authorization solutions. The addressable markets for their main products and services are primarily in automotive security, access control, and power access systems.

The estimated market sizes for Strattec's main products and services are as follows:

• Automotive Security and Access Control Systems (Global):
  • The global car security systems market was valued at approximately USD 8.2 billion in 2024 and is projected to reach USD 15.4 billion by 2034.
  • The global vehicle access control market was valued at USD 15.53 billion in 2024 and is expected to grow to USD 46.2 billion by 2034. North America held a significant share, accounting for 33.5% of the global vehicle access control market in 2024.
  • The global automotive locking system market was valued at USD 8.34 billion in 2024 and is projected to increase to USD 10.98 billion by 2031. North America leads this market with a share exceeding 35%.
  • The global automotive smart key market was valued at USD 12.7 billion in 2023. North America held approximately 30% of this market in 2023.
• Automotive Power Access Systems (Global):
  • The global automotive power sliding door system market was valued at approximately USD 15.74 billion in 2024 and is expected to reach USD 38.67 billion by 2031.
  • The global power liftgate market was valued at USD 3.51 billion in 2025 and is projected to reach USD 7.94 billion by 2035.

Strattec Security (STRT) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Launch of new products and advanced technologies, particularly Digital Keys and Power Access Solutions: Strattec is strategically shifting its product portfolio towards advanced electronic security products and higher-value content. This includes the development and launch of digital key fobs, which integrate with smartphone applications and utilize technologies like Bluetooth, UWB, or NFC. The company has seen significant growth in Power Access products and Engineered Latches due to new programs and higher-value content, offsetting declines in more mature product lines like mechanical keys and locksets.

2. Strategic pricing and a favorable sales mix: The company has implemented ongoing price increases to its major customers, which directly contribute to revenue growth. Additionally, an improved sales mix, particularly from higher-value product offerings such as Power Access and User Interface Controls, is enhancing overall revenue.

3. Increased demand and higher production volumes on existing platforms: Strattec has benefited from higher demand for its products on existing automotive platforms. This has led to increased sales volumes, with some customers building inventory to meet their production plans.

4. Expansion of the customer base: A long-term growth driver for Strattec includes expanding its customer base, alongside a focus on advanced electronic security products. This strategy aims to support stronger long-term growth and improved margins.

Share Repurchases

• In October 2023, Strattec Security's Board of Directors authorized a new share repurchase program, allowing the company to repurchase up to $100.0 million of its common stock, effective from January 1, 2024, until December 31, 2025.
• The previous share repurchase program, authorizing up to $150 million, expired on December 31, 2023, with $142.4 million remaining unauthorized at its expiration.
• During the quarter ended December 31, 2023, the company repurchased 89,781 shares of common stock in the open market for approximately $1.5 million, including commissions.

Share Issuance

• During the fiscal year ended July 2, 2023, Strattec issued 38,710 shares of common stock for $1.1 million, primarily through its equity compensation plans.
• For the fiscal year ended July 3, 2022, the company issued 48,155 shares of common stock for $1.5 million, mainly related to equity compensation plans.
• In the fiscal year ended June 27, 2021, 62,492 shares of common stock were issued for $2.4 million, predominantly through equity compensation plans.

Inbound Investments

• No significant inbound investments by third parties (e.g., strategic partners or private equity firms) were reported in the 10-K filings for the fiscal years 2021-2024.

Outbound Investments

• On June 30, 2023, Strattec completed an Equity Restructuring Agreement with WITTE. This resulted in STRATTEC Power Access LLC (SPA), previously 80% owned by Strattec, becoming a wholly owned subsidiary through the purchase of the remaining non-controlling interest.

Capital Expenditures

• Capital expenditures totaled approximately $15.5 million for the fiscal year ended June 30, 2024.
• Capital expenditures were approximately $14.1 million for the fiscal year ended July 2, 2023.
• For the fiscal year ended July 3, 2022, capital expenditures amounted to approximately $10.9 million.