Nynomic : Letter to Shareholders 02/2021

Dear Ladies and Gentlemen,
Dear Shareholders,

Nynomic has achieved a very convincing performance and an overall excellent result in the year to date. The order backlog as of 30 September 2021 was around EUR 78.3 million, a significant increase of around 79% compared to the previous year (30 September 2020: EUR 43.8 million). We see this record order backlog as a very positive indication for the financial year 2022. There was also a significant increase in sales and earnings, despite the strong prior-year base: Sales for the first nine months showed excellent growth, rising by around 39% year-on-year to approximately EUR 78.3 million (2020: EUR 56.2 million), with increases in all business areas and regions. EBIT for the first three quarters grew with disproportionate dynamics to approximately EUR 9.7 million (2020: EUR 5.6 million; +73%), resulting in a favorable margin development of approximately 12%.

Nynomic's robust, globally diversified business model has once again proven its strength. Our business areas Life Science, Clean Tech and Green Tech complement each other very well. Advanced photonics technology, innovation and digital solutions are our keys to mastering our customers' complex projects and designing processes that are smarter, more efficient and more sustainable. We are working together in cooperations with renowned partners on numerous projects, in which our spectroscopy-based analysis techniques provide real added value for our customers and for the society.

During the year, we also took the opportunity to strategically set the course for further future growth. Highlights of the year include the acquisition and successful integration of our two new subsidiaries, with which we were again able to meaningfully expand the technology platform as well as the value chain of the Nynomic Group as part of our buy-and-build strategy. As the ninth pillar, in June 2021 we acquired Image Engineering GmbH & Co. KG, a leading specialist in the development and production of test and calibration equipment for cameras and multi-sensor systems, into our group of companies. We already informed about this company in our previous Shareholders' Letter. MGG GmbH, acquired in September, forms the tenth pillar of the Group. The company also fits perfectly into the portfolio of the Nynomic Group and contributes to efficiently increasing the depth of value added. MGG is an internationally recognized specialist for miniature and precision light sources at the highest level. The highly profitable company manufactures over five thousand different types of lamps, including those for optical measurement technology, aviation, medical and communications engineering, telecommunications and machine tooling. With joint strength, we aim to expand our existing market lead and realize further growth potential by opening up new sales markets. The interlinking of our efficient solutions, and a strong, distinctive image and corporate identity under one Group roof are creating clear synergies which will further strengthen our market position.

We are very pleased that the integration of our new employees into the Nynomic Team is already working out very well. The positive aspects of our Nynomic corporate culture, such as customer orientation, innovative thinking, team spirit and respectful cooperation, are shared throughout our Group. The excellence and resilience of the entire Team provide the core of our success. Our employees have mastered all challenges of the current year with sovereignty and competence.

The stock markets have been rather variable since the publication of the last Shareholders' Letter in August. At the Hamburg Investor Day HIT, where Nynomic AG once again presented itself successfully, the mood was bright. While in summer there were hopes that the coronavirus pandemic would be contained, these hopes were unfortunately not confirmed in November.

Thus, in August - following the announcement of new record figures in connection with an increase in the annual sales forecast - the price of the Nynomic share rose by around 30% from around EUR 42.00 to a new record level of around EUR 55.00, which corresponds to a company valuation of around EUR 313 million. Despite a further forecast increase on 2 November, the Nynomic share consolidated in line with the general market development at the beginning of December at around EUR 45.00. At this time, the Scale30 selection index was at around 1,590 index points, compared to around 1,800 points at the end of August.

The stock exchange letter Platow Börse used price setbacks to increase the stock of Nynomic shares in its sample portfolio. At EUR 47.00 and EUR 52.00, the fair value of the Nynomic share calculated by Warburg Research and Montega AG, respectively, is significantly above the current price level.

The company's operating performance was reflected very positively at the virtual MKK Munich Capital Market Conference, where Nynomic traditionally presented itself to the financial community last week on 7/8 December.

Due to the coronavirus pandemic, the Annual General Meeting of Nynomic AG was again held this year entirely virtually, without the physical presence of shareholders or their proxies. All resolutions were approved with large majorities. We would like to thank you, also on behalf of the Supervisory Board, for your participation and your continued strong confidence in Nynomic.

Nynomic's sales and earnings have developed above plan in the year to date. We confirm our forecast for the financial year 2021 - a forecast that Nynomic has raised twice in the course of the year. Accordingly, for 2021, Nynomic Group expects consolidated sales of around EUR 100.0 million with a further EBIT margin expansion compared to the previous year. In a challenging environment, we have increased our market share and pursued our successful course. We will continue with this positive momentum in financial year 2022, as we are optimally positioned to support our customers and benefit from major growth drivers. Our strategy in combination with our broad product portfolio of premium photonic solutions, our strong balance sheet and our highly qualified and dedicated employee teams form a solid basis for further profitable growth and value creation for our stakeholders. We are focusing on further expanding our innovative strength and technical expertise in complementary business areas. The interests of all stakeholders are always taken into account and the economic, ecological and social aspects of the measures are carefully assessed.

An eventful year is coming to an end - 2022 is already waiting. We would like to thank you, dear shareholders, for your support and wish you good health and well-being! Merry Christmas and a Happy New Year to you and your families

Yours,

Fabian Peters and Maik Müller
-Management Board Nynomic AG-