Stemmer Imaging : Q1 2024 Präsentation

Leading Vision.

STEMMER IMAGING

EARNINGS CALL Q1 2024

ARNE DEHN	MICHAEL BÜLTER
CEO	CFO

NAVIGATING THROUGH CHALLENGING CONDITIONS, POSITIVE TREND VISIBLE TO CONFIRM FY PROGNOSIS

MARKET

SHOWS EARLY

SIGNS OF

STABILIZATION

Q1 as expected impacted in revenues by weak demand in all end-markets

Rebound in bookings after decline in 2 HY 23 - Positive signals in Medical, Logistics, Recycling and Sports&Entertainment

Growth projections for remainder of the year are based on vivid, high scale design-in wins

HIGH FOCUS ON

OPPORTUNITY

PIPELINE

EXPANSION &

CONVERSION

MORE: Customer expansion and new Customer wins with MORE Portfolio

ONE Process and organisational efficiency improvements show structural cost reductions

ONE Group Brand

STEMMER IMAGING

Strategic market expansion with Closing Acquisition Phase1 Technology, USA

STRONG

FINANCIAL KPIS

DESPITE

TEMPORARY

REVENUE

DECREASE

Value added strategy translates into further increase of gross margin

2023 efficiency measures lead

to structural cost reduction in Q1 of EUR 1.6 M

EBITDA Margin 15% - recovering into bandwidth (17-21%) for FY

Cash generation with EUR 9.4M with Working Capital bandwidth < 15%

FY PROGNOSIS WITH YOY GROWTH IN BOOKINGS - REVENUE AND EBITDA BANDWIDTH CONFIRMED

08/05/24

2

EARNINGS CALL Q1 2024

Q1 2024 - KEY FINANCIALS

Q1 2024 in line with expectations

EUR 33.1m	EUR 27.5m
Order entry	Revenues
39.9%	EUR 4.1m
Gross margin	EBITDA

EPS

0.34 €/share

Net debt

EUR - 44.7 million

Equity ratio 77.8%

Op. Cash flow EUR + 9.4 million

Q1 2024 KPIs

270 employees

16+ locations across Europe, North America and Latin America

08/05/24

3

EARNINGS CALL Q1 2024

EXPANSION ROADMAP FURTHER ACCELERATED…

… with Recent Opportunities of Phase1 Acquisition

Market Communication at US shows (Automate & Embedded World)

• Leverage existing STEMMER IMAGING brand recognition

High Overlap of MV component Suppliers

• Secured supplier relationships (Change of Control)

Expansion of Multi/International accounts

• First support sessions held in US to prepare hand-over to local support

Strengthened Partnership with Sony

• Acceleration of Machine Vision sensor business for higher volume applications

Started to further evaluate ecosystem to detail out expansion strategy

• Review further M&A opportunities

	GPU	CPU		FPGA	INTERFACEVISION STANDARDS
	INTELLIGENT
ONBOARD INTELLIGENCE	IMAGE SENSOR			MICROCHIP
		EMBEDDED

TECHNOLOGY

COMPUTER ON MODULE (COM)

SYSTEM ON MODULE (SOM)

< 200.000

Volume (pieces)

< 25.000

< 2.000

low

Integration depth

high

08/05/24

4

EARNINGS CALL Q1 2024

AMELIORATING BUSINESS WITH IMPROVED BOOKINGS WITH YOY STAGNATING REVENUE DEVELOPMENT EFFECT WITH UPSIDES:

INDUSTRIAL MV

• Factory Automation
• Print & Packaging
• Metrology
• Automotive
• Recycling

Q1 2024 - Actuals:		Q2 2024 - Forecast:
Rebound in Bookings with		Improved bookings with
rock-bottom billings		still some hestitation in
		deliveries

Impacted in Bookings from industrial downturn

Positively driven by Metrology, EV and successes in accelerated access to Automotive Account

Q3 2024 - Forecast:		Q4 2024 - Forecast:
Recovery in demand		Compensation effects
and deliveries		show higher level
		revenues

Demand to shift from short-term orders to larger project volume deliveries

Step wise recovery of market demand and billings while we expect full potential to develop in 2025

Upside potential: North America expansion with International Accounts

ARTIFICIAL MV

• Sport & Entertainment
• Medical
• Transport & Logistics
• Food & Agriculture
• Defense & Security

New Customer wins in Sport & Entertainment and Security with short BtB cycles

Medical with large volume orders as Post Corona investments in clinics start to ramp up

Bookings remain high in this segment

Food & Agriculture with fully deployed material from warehouses

2024 OUTLOOK*

Reaffirmation of FY prognosis:

Revenues: EUR 140 - 157m with above average catch-up in 2nd half-year and expected YoY stagnation with upside EBITDA: EUR 24 - 31m within midterm guidance range (17 - 21%)

08/05/24

5

* Barring unforeseen circumstances

EARNINGS CALL Q1 2024

BACKUP

08/05/24

6

EARNINGS CALL Q1 2024

PROFIT & LOSS 3M 2024

Consolidated key figures (in MEUR)

Order intake

Revenues

Gross profit

Personnel expenses

Other operating expenses

EBITDA

EBIT

3M 2024	3M 2023	%
33.1	36.1	- 8.3%
27.5	40.4	- 31.9%
11.0	15.8	- 30.6%
- 6.0	- 6.5	- 8.0%
- 0.9	- 1.9	- 54.4%
4.1	7.4	- 44.4%
3.1	6.3	- 50.5%

• Order intake with increasing dynamics but below Q1 23 - above Q3 and Q4 2023 as a positive sign for development in 2024
• Revenues down by 31.9% to EUR 27.5 million compared to strong Q1 23 (Q1 2023: EUR 40.4 million)
• Gross margin at 39.9% (PY: 39.1%) - Strong development in both segments Distributions and Solutions - Systems house strategy pays off
• Personnel expenses reduced to EUR 6.0 million
  (-8.0% vs PY) - Q1 due to increase of personnel provisions on higher end compared to following quarters
• Operational expenses significantly below 2023, mainly due to effectiveness of cost measures, positive FX influence as well as stringent receivables management
• EBITDA EUR 4.1 million (ROS: 14.9%) - cost efficiency measures help cushioning revenue reduction
• EBIT EUR 3.1 million (ROS: 11.4%)

08/05/24

7

EARNINGS CALL Q1 2024

CASH FLOW STATEMENT 3M 2023

Consolidated key figures

(in MEUR)

Net income

Depreciation & amortisation

Change of working capital

Cash flow from operating activities

Cash flow from investing activities

Thereof payments for investments in property, plant and equipment

Thereof payments for investments in financial assets

Cash flow from financing activities

Cash flow of the period

3M	2024	3M	2023
+	2.2	+	4.6
+	1.0	+	1.1
-	6.6	+	1.8
+ 9.4	+ 5.5
- 0.2	- 0.3
-	0.1	-	0.2
- 0.0	- 0.2
-	1.0	-	1.0
	8.2	+	4.1

Cash flow from operating activities:

• Regular depreciation and amortization (EUR 1.0 million)
• Significantly reduced working capital compared to 31/12/2023

Cash flow from investing activities:

• Investments in digitalization of business model

Cash flow from financing activities:

• Regular repayments of loan (EUR 0.5 million)
• Regular lease payments (EUR 0.5 million)

08/05/24

8

EARNINGS CALL Q1 2024

BALANCE SHEET ASSETS (31/03/2024)

(in MEUR)

Non-current assets

Current assets

Assets

31/03/2024	31/12/2023
30.4	33.0
75.5	92.8
106.0	125.8

(in MEUR)

Equity

Non-current liabilities

Current liabilities

Equity and liabilities

31/03/2024	31/12/2023
82.5	88.6
5.7	7.5
17.8	29.7
106.0	125.8

Non-current assets:

• Goodwill at EUR 19.3 million

Current assets:

• Net working capital in relation to revenues is amounting to 14.0% (2023: 17.3%) - significantly decreased inventory of EUR 11.4 million
• Net debt EUR - 44.7 million (2022: EUR - 36.6 million)

08/05/24

9

EARNINGS CALL Q1 2024

Equity:

• Equity ratio amounting to 77.8% (2023: 77.1%)

Non-current & current liabilities:

• Decrease of non-current portion of bank loan to EUR 0.0 million
• Current portion of bank loan: EUR 1.0 million

EXECUTIVE BOARD & IR CONTACT

ARNE DEHN		UWE KEMM		MICHAEL BÜLTER		JULIA HASSELBACH
CEO		COO		CFO		BOARD ASSISTANT & IR

• Born in 1969
• More than 25 years of experience in managing international technology companies
• CEO of STEMMER IMAGING since 2019
• Responsible for Group Strategy and
  Development, Marketing, Product Management, Regional Management, Purchasing and Logistics, Finance, Investor Relations and M&A
• Previous roles include Member of the
  Executive Board at TKH Group N.V., Managing Director at Honeywell, and Director of Sales and Marketing at Siemens
• Arne Dehn holds a Master's degree in
  Business Economics from Goethe University Frankfurt

• Born in 1961
• More than 30 years of experience in managing software and IT companies
• COO of STEMMER IMAGING since 2020
• Responsible for New Business &
  Corporate Development, International Sales Enablement, Technical Support, Vision Systems, Development, IT as well as Human Resources and Organisational Development
• He worked as an independent management consultant and is a member of the Supervisory Board of Cancom
• Previous roles include Board Member at
  Primepulse, CEO at Foxray AG, and Senior Managing Director at Adobe

• Born in 1985
• More than 15 years of experience in management consulting and several finance roles
• STEMMER IMAGING since 2020, named
  CFO in 2022
• Responsible for Finance, Controlling,
  Accounting as well as Risk and Quality Management, Tax, Legal and Insurance
• Previous consulting & finance management roles at CTcon Management Consultants, at FAS AG and Bischof + Klein
• Michael Bülter holds a Master's degree in Economics from Oldenburg University

• Born in 1982
• More than 15 years of experience in several finance roles
• Board Assistant at STEMMER IMAGING since 2023
• Responsible for Investor Relations, ESG and Management of board projects
• Previous roles in Controlling and
  Corporate Investments at Siemens and Deutsche Flugsicherung including group supervisory board mandates
• Julia Hasselbach holds a degree as Dipl. Betriebswirtin (DHBW) in Business Administration from Cooperative State University Karlsruhe

08/05/24

10

EARNINGS CALL Q1 2024