Strattec Security Corporation

Company Profile

Business Overview

-The Company designs, develops, manufactures and markets automotive security, access control, and user interface control products and solutions primarily for North American customers. Its products include mechanical and electro-mechanical locks and keys, passive entry passive start systems, phone as a key systems, steering column and ignition lock housing, latches, sliding side door systems, tailgate systems, liftgate systems, deck lid systems, and door handles.

-The Company is a Cooperating Partner of the VAST Alliance with WITTE Automotive of Germany and ADAC Automotive Inc. of Michigan, U.S.

-On June 30, 2023, the Company completed an Equity Restructuring Agreement with WITTE related to the VAST LLC and SPA joint ventures. The Company sold its one-third ownership interest in VAST LLC to WITTE. The Company also entered into a cooperation framework agreement with WITTE related to VAST LLC which provides a framework for the parties to collaborate on global programs related to product development and manufacturing. WITTE is now the owner of VAST LLC in China, India, and Japan, ADAC Plastics Inc. now owns VAST Brazil, and the Company owns VAST Korea. Despite the change in ownership, the Company will continue to utilize the VAST brand and collaborate on product development and manufacturing with WITTE and VAST to win new business.

Competitors

-The Company's major competitors of lockset, housing and power access systems are as follows:

• Aisin Seiki
• Alpha
• Brose
• Edscha
• Gecom
• Honda Lock
• Huf
• Inteva
• Kiekert
• Magna
• Marquardt
• Mitsuba
• Mitsui Kinzoku ACT
• Novares
• Ohi
• Shin Chang
• Stabilus
• Tokai Rika
• U-Shin
• Valeo

Shareholders

-The Company is listed on the NASDAQ Stock Exchange.

Products

Vehicle Access Solutions
Power access solutions
-Quarter mount power sliding door system
-Lower track power sliding door system
-Chain drive power liftgates
-Power strut power liftgates
-Invis-A-Rise power liftgates
-D-Pillar power liftgates
-Power tailgates
-Power decklids
-ECUs for power access systems
-Power ramps
-Access solutions (sliding, lift, swing, pivot) for autonomous driving applications

Latches
-Engine compartment latches
-Trunk latches
-Door latches
-Passive entry door latches
-Door handles
-Seating latches
-Hood latches
-Secondary latches for applications including truck endgates, tonneau covers, and glass hatches
-Power sliding door latches
-Mechanical and electro-mechanical closure control units

Power access components
-Cinching strikers
-Power latches
-Liftgate cinching latches
-Tailgate cinching latches
-Electronic control units (ECUs)
-Power drive units

Security & Authorization Solutions
-Passive Entry Passive Start (PEPS) Systems
-Key fobs
-Start-stop buttons
-Ignition locks
-Interior locks
-Door locks
-Secondary locks
-Mechanical keys
-Integrated keys and fobs
-Digital keyfobs
-Electronic Steering Column Locks (ESCL)
-Mechanical Steering Column Locks (MSCL)
-Plastic ignition holders
-Brackets
-Wire harness holders

User Interface Controls Solutions
-Steering wheel switches
-Electronic shifter modules
-Transmission paddle shifters

History

Supplemental Information 1

>>>Business Report FY ended Jun. 30, 2006
>>>Business Report FY ended Jun. 30, 2007
>>>Business Report FY ended Jun. 30, 2008
>>>Business Report FY ended Jun. 30, 2009
>>>Business Report FY ended Jun. 30, 2010
>>>Business Report FY ended Jun. 30, 2011
>>>Business Report FY ended Jul. 1, 2012
>>>Business Report FY ended Jun. 30, 2013
>>>Business Report FY ended Jun. 29, 2014
>>>Business Report FY ended Jun. 29, 2015

>>>Specific information on the VAST Alliance

Note: A figure in brackets ( ) indicates a loss

Supplemental Information 2

VAST Alliance

-In November 2000, the Company entered into a formal Alliance with WITTE-Velbert GmbH, an automotive supplier based in Germany, which designs, develops, manufactures and markets automotive access control products for European-based customers. This Alliance consisted of two elements. The first one was a cross-licensing agreement which allowed the Company to manufacture and market WITTE's core products in North America, and allowed WITTE to manufacture and market the Company's core products in Europe. The second was a 50-50 joint venture, WITTE-Strattec LLC, to invest in operations with local partners in strategic markets outside of Europe and North America.

-In November 2001, WITTE-Strattec LLC and IFER Estamparia e Ferramentaria Ltda formed Witte-Strattec do Brasil, a joint venture to serve South American automotive customers.

-In March 2002, WITTE-Strattec China was formed. This joint venture, between WITTE-Strattec LLC and a unit of Elitech Technology Co., Ltd. of Taiwan was located in Fuzhou, China, and became the base of operations for serving Asian automotive customers. As the Asian market expanded, a second Chinese joint venture was created in October 2004, named WITTE-Strattec Great Shanghai Co.,Ltd.

-In January 2006, ADAC Automotive Inc. entered into the Alliance with WITTE and the Company. ADAC, headquartered in Michigan, U.S., produces molded and painted interior and exterior door handle components, exterior trim, cowl vent grilles and marker lighting for worldwide automakers. As a result of this expansion of the original Alliance, the WITTE-Strattec LLC was renamed Vehicle Access Systems Technology LLC (VAST). With the re-branding, the joint venture companies in Brazil and China also assumed the VAST name. The VAST Alliance provides a set of cross-licensing agreements for the manufacture, distribution and sale of WITTE products by the Company and ADAC in North America, and the manufacture, distribution and sale of the Company and ADAC products by WITTE in Europe.

-In 2009, VAST LLC purchased the remaining 40% interest of its local partners in Chinese joint venture, making VAST China a wholly owned subsidiary by VAST LLC.

-In 2015, the Company announced that its VAST LLC joint venture, which includes WITTE Automotive of Germany and ADAC Automotive of the U.S., has completed an agreement to become a 50:50 joint venture partner with Minda Management Services Limited. VAST acquired a 50% equity interest in the former Minda-Valeo Security Systems joint venture, based in Pune, India for approximately USD 12 million. The joint venture will be renamed Minda-VAST Access Systems. Minda-VAST will have operations in Pune and Delhi and is expected to have approximate annual sales in excess of USD 40 million.

-On June 30, 2023, the Company completed an equity restructuring agreement with WITTE related to both its VAST LLC joint venture and its Strattec Power Access LLC (SPA). Under the agreement, the Company sold its one-third ownership interest in VAST LLC to WITTE and acquired a 20% minority shares’ WITTE in Strattec Power Access LLC (SPA). WITTE is now the owner of VAST LLC in China, India, and Japan, ADAC Plastics Inc. took over VAST Brazil, and the Company owned VAST Korea. The Company became a 100% ownership of SPA, which owns 100% of a Mexican subsidiary, Strattec Power Access de Mexico. It currently operates out of defined space in Strattec de Mexico Plant 3 located in Juarez, Mexico. As part of the sale of the Company's interest in VAST LLC, it also entered into a cooperation framework agreement with WITTE related to VAST LLC, which provides a framework for the parties to collaborate on global programs related to product development and manufacturing. This equity restructuring agreement and cooperation framework agreement will create greater focus on the Company’s strategic growth opportunities in North America and around the world. Moreover, the Company entered into a new cooperation framework agreement with WITTE, that enables it to supply and deliver global programs by leveraging the VAST global footprint with the added advantage of providing regional support from WITTE’s operating entities in Europe, China, and India. The Company will also jointly, along with ADAC Plastics and WITTE, continue to leverage the sales and engineering offices in Japan, Korea, and Brazil.

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<Members of the VAST Alliance>