Nynomic : Letter to shareholders 01/2022

Dear Ladies and Gentlemen,
Dear Shareholders,

We are pleased that we were again able to present a successful first half of 2022. Our recently published results for the first six months are very satisfactory, as we continued our growth and slightly exceeded the extremely strong first half year 2021 key financial indicators. For detailed information, please refer to ourhalf-year report, which is available on the Nynomic homepage. The record order backlog at the end of the first half year demonstrates the attractiveness of our solutions and products. The fundamental drivers of our industry remain strong. Thanks to its leading market and technology position, the Nynomic Group has benefited from long-term and intact megatrends such as digitalization, automation and artificial intelligence, and has seen continued high demand despite macroeconomic uncertainties. Our well-filled order books underline the visibility of our growth path and provide confidence for the further course of the year.

Amid a difficult environment, Nynomic proves its strong economic resilience. Our robust, innovative and flexible business model is particularly beneficial in a rapidly changing market background. Our success, however, is above all the achievement of our excellent team. Our employees have successfully mastered all challenges with full commitment, loyalty and flexibility, and have received a lot of positive feedback from our customers and partners. We do not take this for granted; therefore, we would like to express our special thanks to the Nynomic Team.

We are continuing our sustainability efforts also in these turbulent times. Our aim is to become better and better in this area, and we are integrating sustainability into our business activities to contribute to value enhancement on a social, environmental and economic level. These efforts include the development of high-quality, more resource-efficient solutions and products. A tolerant, healthy, and attractive working environment in which all employees can develop and perform at their best, forms the basis for this. We are convinced that many small steps towards sustainability will have a big impact, and that we are thus contributing considerably to strengthening our future viability.

During our Annual General Meeting, we informed you, dear shareholders, in detail about the development of Nynomic AG in 2021. Due to the ongoing pandemic, the AGM on 28 June 2022 was again held as a pure virtual meeting without the physical presence of shareholders and their proxies. All agenda items were approved by a large majority in the interests of the Company. We thank you for your continued support of our work.

Participation in capital market conferences is mandatory for us also this year. Maintaining contact with existing and potential investors is important to us. Through transparent and continuous dialog with capital market participants, we aim to create trust and sustained shareholder value. This year's Hamburg Investors' Day (HIT) on 24 August was once again a great success. The extraordinarily high level of interest shown in Nynomic by well-known investors and renowned financial analysts both encourages and motivates us to continue our path of profitable and sustainable growth. We are already looking forward to our first participation in the ZKK Zurich Capital Market Conference in September, where we expect to address a promising group of international investors. As in previous years, our presence at the MKK Munich Capital Market Conference on 15 November is another important part of our investor relations activities.

In recent months, we have been contacted by numerous concerned shareholders due to the negative development of the stock markets. After years of highs, the DAX was not the only index to record a loss of around 20% in the first half of the current year. The Scale 30 index segment, in which the Nynomic share is listed, has also lost value by a similar amount in the year to date. Despite excellent operating results, the Nynomic share was not able to escape this trend, resulting in a need for clarification and discussion among shareholders.

From the perspective of Nynomic AG, the situation is as follows: In addition to the impact of the war in Ukraine as well as the Corona pandemic, the significant increase in international key interest rates also plays a role regarding share price losses. Shares in growth and technology companies are affected in so far as investors often assume that the generally high financing requirements of these companies will now lead to a significant impairment of their economic prospects. Even if companies in this target group - such as Nynomic - are not actually affected due to their capital resources and even benefit initially from the discontinuation of negative interest rates, the reality shows that the stock market does not differentiate here, and especially institutional investors often adjust their portfolios by segment. The gradual return of interest rates on money deposits is also having an impact on the risk premiums that the market is willing to pay, so that the ratio multiples are becoming smaller.

Nynomic reports excellent results and generates highly profitable growth even in crisis periods. This is well communicated to the financial community through our extensive IR activities. Being a comparatively small company, we are not able to do more to maintain relative strength in these difficult stock market times. Experience shows that every temporary downturn in stock markets is followed by an upward phase.

We remain confident in the promising prospects and corporate success of our Group and are looking forward with optimism despite increasing challenges. As a pioneer in the photonics industry, we can rely on our extensive technology know-how within the strong Nynomic umbrella brand and will continue to develop and produce highly innovative solutions and products for a wide range of existing and future customer needs. Therefore, we see ourselves very well positioned to successfully complete the 2022 financial year and, with strategic foresight, to achieve our medium- to long-term goals through both organic and inorganic growth. In line with our previously confirmed forecast for the full year 2022, we continue to expect consolidated sales of at least EUR 110.0 million and a further EBIT margin expansion compared to the previous year, assuming that conditions do not deteriorate significantly.

We would like to thank you very much for your trusting support in these serious and not so easy times.

Yours,

Fabian Peters and Maik Müller
-Management Board Nynomic AG-