SLM Solutions Group AG

11/08/2018 | Press release | Distributed by Public on 11/08/2018 00:46

SLM Solutions: Customer interest in SLM machines has increased signifi-cantly, not yet fully visible in revenues

  • Sales Op­por­tu­ni­ties on record level with a total value of 422 Mio. Euro (+28.27% com­pared to Q3/2017)
  • Order In­take (ad­justed by Frame Agree­ments signed in 9M/2017) in­creased by TEUR 4,720 to a total value of TEUR 41,277, Cur­rent Order In­take (01 Jan­u­ary to 07 No­vem­ber 2018, ad­justed by Frame Agree­ments signed in 2017) even in­creased by TEUR 5,656 (+14.8%) com­pared to the same pe­riod in 2017
  • Rev­enue for the first nine months 2018 of TEUR 48,337 was 3.6% down com­pared y-o-y (9M/2017: TEUR 50,163), EBITDA at TEUR -4,329 im­proved by around 10% com­pared to 9M/2017 (TEUR -4,756)
  • Post­pone­ments on Call-Off´s from Frame Agree­ments as main fac­tor have led to ad­just­ments on Rev­enue Guid­ance for FY2018 on 01 No­vem­ber to a cor­ri­dor be­tween 90 Mio. and 100 Mio. Euro with a pos­i­tive EBITDA mar­gin in the sin­gle-digit range

Lue­beck, 08 No­vem­ber 2018 - SLM So­lu­tions Group AG ('Com­pany' or 'SLM'), a lead­ing provider of metal-based ad­di­tive man­u­fac­tur­ing tech­nol­ogy, gen­er­ated rev­enues of TEUR 48,337 in the first nine months 2018 and recorded an EBITDA of TEUR -4,329. New Order In­take (ad­justed by Frame Agree­ments signed in 9M/2017) in­creased by around 13% or TEUR 4,720, com­pared y-o-y. Cur­rent Order In­take (01 Jan­u­ary to 07 No­vem­ber 2018, ad­justed by Frame Agree­ments signed in 2017) sig­nif­i­cantly in­creased to TEUR 43,907, resp. 73 Units (9M/2017: 64 Units, TEUR 38,251). The Ex­ec­u­tive Board of SLM has ad­justed its Rev­enue and Earn­ings Guid­ance for FY2018 on 01 No­vem­ber 2018 due to post­pone­ments of Call-Off´s from the Frame Agree­ment for the de­liv­ery of 20 Units of the type SLM®800 signed in No­vem­ber 2017. SLM now ex­pects Rev­enues in the range of 90 Mio. to 100 Mio. Euro and a pos­i­tive EBITDA-mar­gin in the sin­gle-digit range.

Dr. Axel Schulz, CSO of the Com­pany: 'Un­for­tu­nately, on 01 No­vem­ber, we had to ad­just the Sales and Earn­ings Fore­cast for the 2018 Fi­nan­cial Year due to a cus­tomer-dri­ven shift of Call-Off´s from a Frame Agree­ment. We are now fo­cus­ing on our busi­ness. Next week, the form­next, the most im­por­tant in­dus­try fair in the world of ad­di­tive man­u­fac­tur­ing, takes place. We are launch­ing a new con­cept there: Not so much focus on our ma­chines, but more focus on the suc­cess of our cus­tomers, when using our SLM-Tech­nol­ogy for the pro­duc­tion of func­tional parts in a se­ries pro­duc­tion en­vi­ron­ment.'

SLM had to ad­just the Rev­enue and Earn­ings Guid­ance for FY2018 on No­vem­ber 01 after a cus­tomer in­formed SLM that he will most prob­a­bly not call-off any more SLM®800 ma­chines from the Frame Agree­ment signed in No­vem­ber 2017. 'Due to the dam­age of a ma­chine caused by the cus­tomer resp. his rep­re­sen­ta­tive, with which ref­er­ence com­po­nents should be built for the ac­cep­tance of the equip­ment, the fur­ther Call-Off´s will be post­poned into the year 2019. We have ad­vised our cus­tomer to order a new ma­chine. Our cus­tomer agreed to this pro­ce­dure, but would like have the cur­rent dam­age set­tled through his in­sur­ance com­pany first', ex­plains Dr. Gereon Heine­mann, CTO of SLM.

New Order in­take of SLM, ad­justed by Frame­work Agree­ments signed in 9M/2017, in­creased by TEUR 4,720 to TEUR 41,277 com­pared to the same pe­riod in 2017. The num­ber of or­dered ma­chines, also ad­justed by Frame­work Agree­ments signed in 9M/2017, has in­creased from 60 to 67 ma­chines. Uwe Böger­shausen, CFO and Speaker of the Board of SLM, com­ments: 'Al­though we lost 3.6% in Rev­enues com­pared to the pre­vi­ous year, the Order In­take for the pe­riod Jan­u­ary 01 to No­vem­ber 07, which in­creased by around 15% resp. al­most 5.7 mil­lion Euro de­vel­ops into the right di­rec­tion. We have also con­tin­ued our work on the cost struc­ture. We were able to re­duce the per­son­nel cost ratio by around 10% and im­proved our EBITDA. The in­crease of 3.3 per­cent­age-points in the cost of ma­te­ri­als ratio is mainly re­lated to the build-up of in­ven­to­ries: Ma­chines that are pro­duced and can be sold in 2018 or at the be­gin­ning of 2019.'

Dr. Axel Schulz adds: 'What is of high­est im­por­tance to us is that the cur­rent Sales Op­por­tu­ni­ties with a total value of 422 mil­lion Euro are at a higher level than ever be­fore. As Ex­ec­u­tive Board it is our task to fur­ther de­velop our strat­egy in such a way that for the fu­ture we can use the huge po­ten­tial of this grow­ing mar­ket, short- and long-term, even bet­ter than in the past. This also in­cludes re­think­ing and, if nec­es­sary, re­fin­ing our sales chan­nels in Eu­rope, Asia and North Amer­ica as well as mak­ing our sys­tems even more user-friendly to make sure our ma­chines are able to best serve our cus­tomers´ multi-ma­chine-re­quire­ments in se­r­ial pro­duc­tion en­vi­ron­ments. We con­tinue on our path to­wards be­com­ing a com­pre­hen­sive so­lu­tion provider in the field of ad­di­tive man­u­fac­tur­ing.'

New order in­take in 9M/2018 came in at 67 or­dered ma­chines. This rep­re­sents a de­crease of 44.2 % com­pared to the pre­vi­ous year (9M/2017: 120 ma­chines). Order in­take value with TEUR 41,277 was down by 45.8% com­pared to 9M/2017 (TEUR 76,216). Ad­justed by the Frame Agree­ments signed in the first nine months of 2017 (60 ma­chines) the new order in­take of 9M/2018 was TEUR 4,720 higher com­pared y-o-y.

Cur­rent new order in­take (01 Jan­u­ary to 07 No­vem­ber 2018, ad­justed by Frame Agree­ments signed in 2017) in­creased sig­nif­i­cantly com­pared y-o-y, value wise as well as in total num­ber of ma­chines. SLM came to a total order in­take value of TEUR 43,907 (Base: 07 No­vem­ber 2018), which rep­re­sents an in­crease of 14.8% com­pared y-o-y. The num­ber of ma­chines or­dered also in­creased: From 64 Units to 73 Units.

Total op­er­at­ing rev­enue (the sum of con­sol­i­dated rev­enue, in­ven­tory changes and other own work cap­i­talised) of TEUR 59,395 was up by 15.5 % year on year (pre­vi­ous year: TEUR 51,412), mainly due to a con­tin­ued in­crease of stocks. This is also vis­i­ble in the Work­ing Cap­i­tal, which in­creased by around 18% to TEUR 62,708.

The per­son­nel cost ratio (in re­la­tion to the total op­er­at­ing rev­enue) de­creased from 40.7% in 9M/2017 to 36.7% in 9M/2018.

The cost of ma­te­ri­als ratio (as % of total op­er­at­ing rev­enue) came in at 50.0% due to in­crease of stocks, which was higher com­pared to the pre­vi­ous year (9M/2017: 46.8%), but was im­proved by 6.4% com­par­ing Q3/2017 with Q3/2018 .

EBITDA (earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­sa­tion) was recorded at TEUR -4,329 in the re­port­ing pe­riod, which was bet­ter com­pared with 9M/2017 (ad­justed: TEUR -4,756).

The con­sol­i­dated net re­sult to­talled TEUR -8,366, slightly down com­pared year over year (9M/2017: TEUR -7,931). This cor­re­sponds with basic and di­luted earn­ings per share of EUR -0.47 per share (pre­vi­ous year: EUR -0.44, basic and di­luted).

The Com­pany's eq­uity ratio was re­duced from 67.3% to 49.5%. The main rea­son of the de­crease is the suc­cess­ful place­ment of a con­vert­ible bond in the fourth Quar­ter 2017 and long-term debt for in­vest­ments into the new fa­cil­i­ties in Lue­beck-Genin.

The Ex­ec­u­tive Board con­cretizes rev­enue guid­ance for FY2018 to a cor­ri­dor be­tween 90 Mio. and 100 Mio. Euro with a pos­i­tive EBITDA mar­gin in the sin­gle-digit range.

The SLM So­lu­tions Group AG Re­port for the first nine months of the fi­nan­cial year 2018 will be pub­lished dur­ing the course of today in the 'In­vestor Re­la­tions' sec­tion of www.​slm-​solutions.​com in Ger­man and Eng­lish.

Lübeck-based SLM So­lu­tions Group AG is a lead­ing provider of metal-based ad­di­tive man­u­fac­tur­ing tech­nol­ogy. The com­pany's shares are traded in the Prime Stan­dard of the Frank­furt Stock Ex­change. SLM So­lu­tions fo­cuses on the de­vel­op­ment, as­sem­bly and sale of ma­chines and in­te­grated sys­tem so­lu­tions in the field of se­lec­tive laser melt­ing. SLM So­lu­tions cur­rently em­ploys over 400 mem­bers of staff in Ger­many, Aus­tria, France, Italy, the USA, Sin­ga­pore, Rus­sia, India and China. The prod­ucts are utilised world­wide by cus­tomers in par­tic­u­lar from the aero­space, en­ergy, health­care and au­to­mo­tive in­dus­tries.