Berenberg Diagnostics ConferenceOrganized by: Berenberg Bank

BERENBERG DIAGNOSTICS CONFERENCE

May 15, 2024

SAFE HARBOR STATEMENT

Forward-looking statements involve risks.

This company presentation contains various statements concerning the future performance of STRATEC.These statements are based on both assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we can provide no guarantee of this.This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected.

It is not planned to update these forward-looking statements.

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STRATEC AT A GLANCE

• Leading OEM player for automation solutions for the diagnostics industry and translational research
• Three decades of experience in highly regulated healthcare markets and growing technology pool
• Around 1.500 employees worldwide
• • Around 50% allocable to R&D
• Production sites in Germany (HQ), Switzerland, Hungary,Austria and in the United States
• High number of systems installed globally
• • Around 15,000 medium to high throughput systems
  • Around 40,000 low throughput systems
• Sales of € 261.9 million in 2023
• • CAGR sales since IPO in 1998: ~14%
• Sales split 2023:
• • Systems 44%
  • Service parts and consumables 37%
  • Development and services 19%

SELECTED PRODUCTS

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CORPORATE SOCIAL RESPONSIBILITY

QUALITYENVIRONMENTAL

MANAGEMENT RESPONSIBILITY

Highest quality standards

Combat climate change

• Established high-performance,  Greenhouse gas reduction target1

	certified quality management	in-line with Paris agreement
	system	 STRATEC reduced its total Scope 1
	Ensuring consistently high	and 2 emissions by 57% since 2019
	product quality	 Unavoidable Scope 1 and 2
	Strong audit track record	emissions fully compensated by
	(regarding inspections by	certified emission reduction
	customers and regulatory	projects
	authorities)

SOCIAL RESPONSIBILITY

Secure diverse and inclusive work environment

• Strong policies and measures to promote an open, tolerant and discrimination-free corporate culture
• Extensive occupational health/safety policies and programs

Participant of the UN Global Compact: Further alignment of strategies and operations to the Ten Principles of the UN Global Compact on human rights, labor, environment and anti-corruption /SDGs

1 30% absolute reduction of scope 1 and 2 emissions by 2030 (versus 2019)

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UNIQUE POSITION WITHIN THE VALUE CHAIN

STRATEC provides instrumentation, consumables, software and automation solutions

• OEM development and manufacturing
• Around 10,000 fully automated analyzer systems manufactured annually
• Wide range of intellectual property rights / broad technology pool

Long market lifecycles lead to longstanding partnerships

• Product lifecycles for a system typically in an area of 12 to 15 years
• Expanding installed base of systems
• Product enhancement and extension drives value / Life cycle management

Long-term contractual setup

• Milestone payments during development stage (linked to agreed development budget and development targets)
• Operating sales during series production stage - minimum volume commitment by partner, firm transfer price)
• Recurring sales from service parts & consumables
• strong commitment by both partners

Shared responsibilities

Analyzer Market

Systems Access Partner

SoftwareReagents

Plastic

Consumables

Indicative revenue characteristics of an analyzer OEM project

Development and market launch of successor product

2 to 4 years	12 to 15 years	Another 5 years
Marketing phase of the analyzer system
development	of service parts
phase	Service part & consumables	& consumables

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ACTIVE IN FAST GROWING SEGMENTS

IVD MARKET SEGMENTS / IVD MARKET: ~100 BILLION USD

Focus on market segments with above average complexity and growth

Molecular Diagnostics

• Random access analyser systems (mid-to-high throughput)
• Smart consumables (multiplexing)
• POC devices (multiplexing) with smart consumables

Immunoassay

• Random access analyzer systems (mid-to-high throughput)
• Classic plastic consumables
• Smart consumables

Hematology & other routine testing

• Decentralized testing solutions
• Veterinary diagnostics
• Plastics

Further specialities / focus areas

• Immunohematology
• Complex Sample Processing
• Tissue Diagnostics
• Translational Research

IVD market by technologies

IVD market by product group

Source: MarketsandMarkets Research; own estimates

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BENEFITTING FROM OUTSOURCING TREND

OUTSOURCED VS IN HOUSE INSTRUMENTATION MARKET

The majority of instrumentation equipment in the IVD market is still developed in-house by diagnostics companies.

Share of outsourced developments has already increased significantly over the last couple of years.

Trend of outsourcing towards specialized players set to continue, due to:

• Engineering of automation solutions often not core competence of diagnostics companies
• Shorter development timeframes due to already existent technology pools
• Guaranteed project budget and firm transfer prices
• Keeping up with regulatory developments easier for specialized players
• Structured processes in order to address end customer needs, such as ease of use, user experience, workflow efficiencies, remote access, serviceability and preventive maintenance

	Proportion of outsourced instrumentation developments over time
	Ongoing paradigm shift even within
Past	the "blue chips" towards outsourcing

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STRONG RECURRING REVENUE BASE

Service parts and consumables (37% of sales)

• Maintenance parts
• Spare parts
• Classic plastic consumables (eg. Pipetting tips, reaction vessels)
• Smart consumables (highly complex cartridges; microfluidics, molding, mastering and coating technologies)

Fueled by growing installed base and increasing complexity

• Continuously growing number of active systems in the lab
• Strong upward trend in the average complexity of systems

Installed base1			Installed base1
STRATEC Instrumentation		Diatron
16,000			15,139		42,000				39,772
15,000		14,612	15,134	40,000			39,061
14,000	13,898				38,000		37,008
				36,000	35,340
13,000					34,000
12,000					32,000
	2020	2021	2022	2023		2020	2021	2022	2023

Installed base (number of system)

1 Estimated with the assumption of an average six year replacement cycle in the lab

Smart consumables

SIMOATM 24-ASSAY DISC

Quanterix

VITEK® MS

Disposable target slide

bioMérieux

Sales split 2023

Service parts and

consumables

37%

Development and

Services

19%

Service and spare parts

Perestaltic Pump

STRATEC

Classic consumables

Stackable Cuvette

STRATEC

Systems

44%

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STRONG LONG-TERM CUSTOMER RELATIONSHIPS

A SELECTION OF STRATEC CUSTOMERS

		Sales 2023
GLOBAL TOP 20 IVD COMPANIES	(USD billion)
1.	Roche	14.2
2.	Abbott	10.0
3.	Danaher	9.6
4.	Siemens	4.8
5.	Thermo Fisher	4.4
6.	Becton Dickinson	3.6
7.	bioMerieux	3.3
8.	Sysmex	3.1
9.	QuidelOrtho	3.0
10.	Exact Sciences	2.5
11.	Illumina	2.2
12.	CH Werfen ( Inova, IL, Biokit)	2.1
13.	Hologic	1.8
14.	Bio-Rad Labs	1.5
15.	Agilent Tech	1.5
16.	Revvity (formerly PerkinElmer)	1.5
17.	Shenzhen Mindray	1.4
18.	DiaSorin	1.2
19.	Natera	1.0
20.	Qiagen	1.0

… And other technology pioneers

STRATEC customer

Not a STRATEC customer

Source: IVD News / non-public companies estimated / non-reported sector sales estimated

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FINANCIAL REVIEW

KEY FIGURES - TRACK RECORD

Sales	CAGR ~7%
350
	287.3

Adjusted EBIT1

CAGR ~3%

60.0

54.3

300	274.6
	261.9

50.0

45.1

250.0

250

207.5 214.2

200		184.9	187.8
150	144.9	146.9
128

				41.7
40.0		36.4
		32.3	29.3
30.0	26.9	26.2	27.1
	24.1

100

50

20.0

10.0

19.5

0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

in million €

0.0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

in million €

• Figures adjusted for comparison; adjusted for depreciation and amortization from purchase price allocation for acquisitions, related integration expenses and other extraordinary effects. Reconciliation to IFRS figures can be found in the respective annual report.

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