9 Month Financial Report 2023

Conference Call

26.10.2023 | Klaus Fiedler, CEO - Christian Witt, CFO

AGENDA

01

02

03

Market and Business Development, Klaus Fiedler, CEO

Financials Q3 2023, Christian Witt, CFO

Q&A

2

LPKF Laser & Electronics SE

BUSINESS DEVELOPMENT

MARKET SITUATION

  • The market for thin-film solar is growing. Adoption of new technologies is accelerating.
  • Heterogeneous situation in electronics. Eastern Europe and North America benefit from reshoring.
  • Automotive and Medical markets for laser welding are stable, with good growth in E-mobility
  • The market for rapid prototyping is stable, with stronger weight on institutional buyers
  • Market introduction of first biotech product (ARRALYZE) started

LPKF Laser & Electronics SE

BUSINESS DEVELOPMENT

  • Perovskites as a new thin-film solar technology show increasing market demand
  • New products in Electronics show good growth, while demand for legacy products is slow
  • Good market traction for E-mobility solutions in laser welding, legacy markets stable
  • Display projects on track to market introduction, semiconductor demand increasing
  • Strong YoY increase in order entry (+29%) and backlog (+56%)
  • Strong focus on deliveries in Q4

SUPPLY CHAIN

  • Uncertainties remain due to global geopolitical and economic situation
  • Ukraine war - still no direct effects on LPKF
  • Relocation of production from Asia to Europe and North America continues
  • Supply situation significantly improved with individual shortages
  • Staffing shortages put strain on operational execution

3

9 Month Financial Report 2023

Financials

26.10.2023 | Klaus Fiedler, CEO - Christian Witt, CFO

KEY GROUP FIGURES AFTER 9 MONTHS 2023

in Mio. EUR

9 Months | 2023

9 Months | 2022

∆

Revenue

80.9

86.8

-7%

EBIT

-4.3

2.5

-272%

EBIT margin (%)

-5.3

2.9

Incoming orders

94.0

73.1

29%

Earnings per Share (EUR)

-0.21

0.07

-400%

Free Cashflow

-13.7

-15.7

13%

As of 09/30/2023

As of 09/30/2022

Orders on hand

76.2

48.8

56%

Employees (total number)

754

744

1%

LPKF Laser & Electronics SE

SALES, PROFITS AND ORDERS

  • Pricing & Material cost on track
  • Slightly negative Product mix effect Q3
  • EBIT follows sales as expected and includes investments esp. in ARRALYZE
  • Better Cash flow due to improved Working Capital
  • Orders on hand up 56%, 40m for 2023
  • Order intake up 29%, increasingly for 2024

5

REVENUE AND EBIT BY SEGMENT

Revenue

0

9 Months

9 Months

in Mio. EUR

2023

2022

0

Electronics

19.9

21.8

Development

20.2

19.8

Welding

14.5

16.3

Solar

26.3

28.9

Gesamt

80.9

86.8

ELECTRONICS

Higher Sales in Depaneling but not yet fully compensating lower sales in other areas.

Continuing selective structural measures to reduce fixed cost; higher (planned) depreciation.

WELDING

Delivery issues in sales (operational), good OI.

Gross Margin stable despite slightly improved, slightly higher fixed cost and slightly lower capitalization of R&D

EBIT

∆

9 Months

9 Months

∆

2023

2022

-8.7%

-4.1

-3.2

-28%

2.0%

0.9

3.0

-70%

-11.0%

-2.2

-0.5

-340%

-9.0%

1.1

3.2

-66%

-6.8%

-4.3

2.5

-272%

DEVELOPMENT

Good demand from prototyping activities, 22 includes >1m revenue

of customer pushouts from 21. Slightly negative F/X impact.

Investment in ARRALYZE affects EBIT, market launch in H1/2024.

SOLAR

2022 includes revenue of customer pushouts from 2021.

Traded components and additional ramp-up cost affected Q1 EBIT. Q3 nicely

profitable with decent sales.

6

FREE CASHFLOW AS PER SEPTEMBER 30TH

in Mio. EUR

9 Months | 2023

9 Months | 2022

Net Working Capital

33.7

39.9

Δ Working Capital

-7.7

-20.6

Net cash used in / generated

by

operating activities

-7.8

-9.5

Net cash used in

investing activities

-5.9

-6.2

Free cashflow

-13.7

-15.7

Net cash position as per

09/30/2023

-2.7

-3.7

FREE CASH FLOW

  • NWC:
    • Stock built-up mainly for Solar deliveries in the next 6 months
    • NWC reduction on track:
      • Stock reduction projects in other BUs start to show effects.
      • DSO improved/improving
      • Mid term target: NWC 10-15% of annual sales

7

2023 GUIDANCE AND MID-TERM ASPIRATION

Core Business

Medium to high single-digit growth for core business

Actuals YTD:

Revenue 80.9 mn

EBIT -4.3 mn

FY-Guidance:

Revenue

EUR 125 - 135 mn

EBIT-Margin 3 to 7 % (unchanged)

New Technologies

New technologies like LIDE and

ARRALYZE can together contribute low triple-digit millions in revenue

EBIT Margin

EBIT margin to reach attractive

double-digit level

Q3/2023

FY 2023

Financial Guidance 2023

Mid-Term Aspiration

8

9 Month Financial Report 2023

Q&A

26.10.2023 | Klaus Fiedler, CEO - Christian Witt, CFO

9 Month Financial Report 2023

Thank you!

26.10.2023 | Klaus Fiedler, CEO - Christian Witt, CFO

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LPKF - Laser & Electronics AG published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 09:16:07 UTC.