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SLM Solutions with modest opening quarter

SLM Solutions Group AG (“Company” or “SLM”), a leading supplier of metal-based additive manufacturing technology, announced revenues of around EUR 7.3 million in the first quarter of the 2019 financial year, recording EBITDA of around EUR -8.1 million.

  • Order intake in Q1 2019 at EUR 3.5 million (Q1 2018: EUR 8.9 million)
  • Sales in Q1 2019 with EUR 7.3 million down by EUR 7.7 million compared to previous year (Q1 2018: EUR 15.0 million)
  • EBITDA in Q1 2019 at EUR -8.1 million due to missing revenue
    (Q1 2018: EUR -1.6 million)
  • New CEO Meddah Hadjar effective May 1, 2019
  • Strategy currently being reviewed by the Executive Board

Lübeck, May 9 2019 – SLM Solutions Group AG (“Company” or “SLM”), a leading supplier of metal-based additive manufacturing technology, announced revenues of around EUR 7.3 million in the first quarter of the 2019 financial year, recording EBITDA of around EUR -8.1 million.

Uwe Bögershausen, CFO of SLM Solutions: “The first quarter of 2019 has turned out well below our expectations. The decrease in sales and earnings are driven by factors not reflective by the full potentials of SLM Solutions.”

Meddah Hadjar, CEO and Chairman of the Executive Board of SLM Solutions since May 1, 2019: “It is beyond question for me that SLM Solutions with its leading multi-laser technology has attractive prospects for growth. We are working on a strategy and targeted measures aimed at restoring growth of SLM Solutions. I have seen in the recent past, particularly in the aviation and energy sectors, how additive manufacturing technology can be incorporated into production processes. There are specific use cases in the automotive sector, too. I am convinced that with the increasing spread of metal-based additive manufacturing technology, SLM Solutions will grow into operating profitability. I am currently working with the team on specific actions to get back on a growth track.”

New Order Intake in the first quarter of 2019 stood at 7 machines which is 53.3% below the same quarter in the previous year (Q1 2018: 15 machines). The value of orders received was around EUR 3.5 million or 60.5% below the value of orders received in the same period in the previous year (Q1 2018: EUR 8.9 million).

Total Operating Revenue (sum of sales revenues, inventory increases and other own work capitalized) came in at EUR 9.0 million which was 51.7% lower in the year-on-year comparison (Q1 2018: EUR 18.6 million) due, in particular, to the decrease of revenues.

The personnel cost ratio (as a % of total operating revenue) rose from 37.7 % in the first quarter of 2018 to 92.9% in the first quarter of 2019. The cost of materials ratio (as a % of total operating revenue) stood at 61.4% in the first three months of the current financial year, also higher than for the previous year (Q1 2018: 51.6 %). The movement of these two key figures is also heavily influenced by the decrease of revenues.

EBITDA (earnings before interest, taxes, depreciation and amortisation) in the reporting period amounted to around EUR -8.1 million (Q1 2018: EUR -1.6 million).

The consolidated net result of EUR -7.7 million was significantly below the year-on-year result (Q1 2018: EUR -3.1 million). This equates to basic and diluted earnings per share of EUR -0.39 (Q1 2018: basic and diluted EUR -0.17).

At 49.1%, the company’s equity ratio is in the same range as for the previous year due to a capital increase of around EUR 13 million carried out on March 28, 2019 (Q1 2018: 49.6 %). As a result of this capital increase, the company’s liquid assets as per March 31, 2019 rose to around EUR 38.1 million (31 December 2018: EUR 27.8 million).

SLM Solutions Group AG’s report on the first three months of the financial year 2019 will be made available in the course of today at www.slm-solutions.com in the “Investor Relations” section in German and English.

About the company:

SLM Solutions Group AG from Lübeck is a leading supplier of metal-based additive production technology. The company's shares are traded on the Prime Standard of the Frankfurt Stock Exchange. The company focuses on the development, assembly and sale of machines and integrated system solutions in the field of Selective Laser Melting. SLM Solutions currently employs more than 400 people in Germany, Austria, France, Italy, the USA, Singapore, Russia, India and China. The products are used worldwide by customers in the aerospace industry, the energy sector, healthcare and the automotive sector.