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SLM Solutions: Strong growth in Q2 2014

SLM Solutions: Strong growth in Q2 2014

Luebeck, Germany, August 28, 2014 – SLM Solutions Group AG, a leading provider of metal-based additive manufacturing technology (often referred to as "3D printing"), continued to grow during the first half of 2014, as expected, and has pushed further ahead with the strategy that it announces in the course of its IPO.

 

  • Revenue up 26.5 % to TEUR 10,830 in H1 2014 (H1 previous year: TEUR 8,558)

  • Adjusted EBITDA of TEUR 98 (H1 previous year: TEUR 186), adjusted EBITDA margin of 0.9 % (H1 previous year: 2.2 %)

  • More than doubling of new order intake to 27 machines (previous year: 12 machines) as of August 22, 2014

 

Revenue as measured on the basis of IFRS of TEUR 10,830 was 26.5 % ahead of the level in the prior-year period (H1 previous year: TEUR 8,558), with the number of machines sold rising to 15 (H1 previous year: 11). The lion share of revenues was generated in the core business of the company, the so-called SLM segment (SLM = Selective Laser Melting), which comprises assembly, marketing and sale of metal-based additive selective laser melting systems for industrial production. As predicted, RP segment (RP = Rapid Prototyping) saw a decline in revenues.

 

CFO Uwe Bögershausen comments on the results: "We remained on our growth track during the first half of this year. The fact that we have doubled new order intake – the most important lead indicator of our operating growth – during the first six months of 2014 makes me particularly optimistic." New order intake amounted to 20 machines in the period under review (H1 previous year: 10 machines). These orders include two orders for the SLM500HL, our flagship product, currently the most productive laser melting system on the market. Bögershausen notes that the positive trend has even accelerated since June 30: “As of August 22, new order intake stood at 27 machines – compared with 12 machines at the corresponding point of the previous year.” Industry giants like tooling expert FIT Fruth Innovative Technologien GmbH or the Koblenz-based wear protection expert Kennametal were among the buyers of SLM machines in the first half of 2014.

 

Total output – the sum of sales revenue, inventory changes and other own work capitalised – grew to TEUR 13,504 (H1 previous year: TEUR 8,924) – in line with the good order book position. The higher level of business volumes also lead to an increase in the material costs during the period under review to TEUR 7,784 (H1 previous year: TEUR 4,796).

 

For its IPO on May 9, SLM Solutions incurred one-off IPO expenses during the first half of 2014. However, the company has already been largely reimbursed by the old shareholders or is in the process of claiming reimbursement: Firstly, preliminary, advisory and auditing expenses of TEUR 2,800 were reported among other operating expenses. Secondly, the "IPO bonus" of TEUR 5,650 was expensed through profit or loss in line with international accounting standards (IFRS). The IPO bonus is a one-off payment that was paid out to the Management Board members and other senior SLM Group staff following the successful IPO. Although the corresponding staff costs are to be expensed through profit or loss in accordance with IFRS, SLM Solutions nevertheless incurs no net charge, as it was fully reimbursed to the company by the old shareholders. This reimbursement appears within the company's equity as an additional payment from shareholders. Thirdly, since the IPO, SLM Group employees also participate in a three-year bonus program to foster their loyalty to the company. A personal expense of TEUR 282 was reported for this program in the period under review, with TEUR 169, in turn, being offset directly with equity.

 

Adjusted for the one-off expenses of the IPO bonus, personnel expenses in the first half of 2014 stood at TEUR 3,415 (H1 previous year: TEUR 2,137). It should be noted in this context that the number of employees as of the reporting date grew further to 106 (June 30, 2013: 74) given the expansion of the international sales and service network, as well as the R&D department based in Lübeck.

 

After taking into account the aforementioned one-off expenses, adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) amounted to TEUR 98 in the first half of 2014 (H1 previous year: TEUR 186), with the adjusted EBITDA margin (expressed as a percentage of revenue) standing at 0.9 % (H1 previous year: 2.2 %). The net result was reported at TEUR -7,244 (H1 previous year: TEUR -829), which corresponds to basic earnings per share of EUR -0.40 on the basis of 17,980,867 shares in issue. Due to the issue proceeds from the capital increase, the equity ratio registered a marked increase to around 89 % as part of the IPO (December 31, 2013: 41 %).

 

Dr. Markus Rechlin, CEO of SLM Solutions: "We are continuing on our growth path and are gradually implementing the strategy that we announced as part of our IPO. Our strategic partnership with the Technical University of Nanyang in Singapore will significantly enhance our fundamental research. At the same time, we are drawing closer to our Asian customers with the opening of our sales office in Singapore. We have also intensified our sales activities in America and have significantly expanded our presence."

 

Sector prospects have also improved further according to figures from the 3D printing sector report published by Wohlers Associates in July 2014: They estimate that the global 3D printing market volume will increase from USD 3 billion in 2013 to USD 12.5 billion in 2014 and above USD 21 billion by 2020. In particular, SLM Solutions Group AG identifies growth opportunities in the metal-based 3D printing market segment: Around the world, large industrial companies are increasingly developing specific plans to utilise SLM Solutions' selective laser melting systems in order to produce complex components directly.

 

Against this background, CFO Bögershausen maintains an optimistic outlook on the second half of the year: "On a current basis, we continue to assume significant revenue growth and a solid adjusted EBITDA margin in the 2014 fiscal year. New order intake, the most important indicator of our operating growth, should amount to between 40 and 50 machines given the trend during the year to date."

 

From today, the report of SLM Solutions Group AG on the first half of 2014 can be downloaded from the company's website at www.slm-solutions.com within the Investor Relations area.

 

About the company

 

SLM Solutions Group AG, headquartered in Luebeck, Germany, is a leading provider of metal-based additive manufacturing technology (also commonly referred to as “3D printing”). SLM Solutions focuses on the development, assembly and sales of machines and integrated system solutions in the field of selective laser melting, vacuum and metal casting. SLM Solutions currently employs over 100 people in Germany and the USA. The products are used worldwide by customers in particular from the aerospace, energy, healthcare and automotive industries. SLM Solutions stands for technologically advanced, innovative and highly efficient integrated system solutions.