SLM Solutions: Successful FY 2014, Q1 2015 new order intake up fourfold in value terms
Luebeck, Germany, April 21, 2015 – SLM Solutions Group AG, a leading provider of metal-based additive manufacturing technology ("3D printing technology"), grew consolidated revenue by 56 % to EUR 33.6 million in the 2014 fiscal year, on the basis of finalised IFRS results (previous year: EUR 21.6 million). The adjusted EBITDA margin was also up by almost 2 percentage points to 13.4 % (previous year: 11.5 %). New order intake of 62 machines (previous year: 26 machines) significantly exceeded the company's original expectations of 40 to 50 machines. This trend is continuing during the first quarter of 2015. At 17 machines, more than twice as many new orders were received than in the previous year (7 machines), with the product mix continuing to reflect a beneficial trend toward a higher proportion of multi-laser machines: the value of machines ordered was up fourfold year-on-year to EUR 14.4 million (previous year: EUR 3.6 million).
Dr. Markus Rechlin, CEO of SLM Solutions Group AG, looks back with satisfaction on the company's first year of stock market listing: "I am extraordinarily pleased with our successes during the 2014 fiscal year. The IPO proceeds allowed us to push much further ahead with our corporate strategy, especially in research and development, as well as international sales. Our company is geared up for growth, and will play a globally leading role for the foreseeable future in the industrial manufacturing revolution being driven by metal-based 3D printing." SLM Solutions' growth tempo accelerated during the course of the year: The fourth quarter made a large contribution to the fiscal year's success – not least due to the important EuroMold sector trade fair in November 2014, where the company received the largest single order in its history, among other orders.
SLM Solutions' consolidated revenue grew by 56 % to reach EUR 33.6 million in the 2014 fiscal year (previous year: EUR 21.6 million). Existing customers bought more machines compared with the previous year (42%, previous year: 27%), and several machines were ordered increasingly frequently as part of a single order (37 %, previous year: 8 %). High-margin multi-laser machines' share of total new order intake almost doubled to 60 % (previous year: 31 %). A total of 8 machines of the SLM 125HL type were ordered (previous year: 3), 43 machines of the SLM 280HL type (previous year: 17), and 11 of the flagship product, the SLM 500HL (previous year: 4).
Due to this strong new order intake, total operating revenue (sum of revenue, inventories of finished goods and work-in-progress, and work performed by the enterprise and capitalised) of EUR 39.3 million was up 76 % compared with the previous year (EUR 22.4 million). The cost of materials ratio (in % of total operating revenue) increased by 2.4 percentage points to 53.6 % due to stockbuilding (previous year: 51.2 %).
Of IPO-related one-off expenses of EUR 8.5 million, EUR 2.8 million were reported among other operating expenses, and EUR 5.7 million in personnel expenses due to the one-off IPO bonus. The IPO bonus is attributable to all Management Board members and SLM Group employees who joined the company before January 1, 2013. In accordance with IFRS, however, such costs were reported under personnel expenses, despite the fact that the previous shareholders reimbursed them in full. The total reimbursements of EUR 7.4 million were reported as a direct additional contribution to equity, with no impact on profit or loss. Personnel expenses of EUR 1.1 million were incurred in relation to provisions for a long-term retention bonus programme.
After adjusting for these bonus programmes, the personnel expense ratio (as a percentage of total operating revenue) amounted to 19.4 % (previous year: 21.1 %), whereby the number of employees increased to 146 (previous year: 79). EBITDA (earnings before interest, tax, depreciation and amortisation) adjusted for the IPO-related one-off expenses and the retention bonus grew faster than revenue to reach EUR 4.5 million (previous year: EUR 2.5 million), with the adjusted EBITDA margin (in relation to consolidated revenue) rising to 13.4 % (previous year: 11.5 %). Amortisation, depreciation and impairment losses amounted to EUR 2.1 million (previous year: EUR 2.1 million), and interest expenses were reduced to EUR 0.2 million (previous year: EUR 0.6 million). The consolidated net result after tax stood at EUR -5.1 million (previous year: EUR -0.4 million), equivalent to EUR -0.30 of basic earnings per share. Given the IPO proceeds, the equity ratio also reported a significant increase to 86.5 % (previous year: 41.3 %).
CFO Uwe Bögershausen looks with confidence to the 2015 fiscal year: "Our value- and growth- drivers continue to develop very positive. We anticipate new order intake of more than 100 machines for the full 2015 fiscal year, and further significant growth in consolidated revenue to between EUR55million and EUR60million. Our adjusted EBITDA margin should line a range between 12 and 13 percent."
As of March 31, 2015, orders for a total of 17 machines have already been received in the current fiscal year (previous year: 7), including 7 units of the flagship SLM 500HL product (previous year: 0), 7 units of the SLM 280HL machine (previous year: 5), and 3 units of the SLM 125HL (previous year: 2). To present and demonstrate the SLM product range, a demonstration centre was opened at the end of March at the company's headquarters in Lübeck, Dr. Rechlin explains: "Our new demo centre for SLM technology is an important building block for SLM Solutions' development and growth. With it, we are underscoring the high demands that we make of ourselves: we aim to remain the leading provider in the metal-based additive manufacturing area for the foreseeable future, through research and development, international customer service, and in-depth market knowledge. Day by day, we are going to continue to pursue this vision with enthusiasm in 2015."
The SLM Solutions 2014 Annual Report is available from today in both German and English from the company's website at www.slm-solutions.com under the menu heading of "Investor Relations".
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”). The company's shares are traded in the Prime Standard of the Frankfurt Stock Exchange. 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 150 members of staff in Germany, the USA and Singapore. The products are utilised 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.