SLM Solutions reports 26% YoY revenue growth to EUR 61.8 m and significant improvement in EBITDA for fiscal year 2020

Strong backlog supports outlook for at least 15% revenue growth in 2021

• FY 2020 revenue of EUR 61.8 m, up 26% YoY (2019: EUR 49.0 m)
• EBITDA for 2020 improved to EUR -14.8 m (2019: EUR -26.0 m)
• Order backlog as of 31 December 2020 at EUR 30.4 m (2019: EUR 35.0 m)
• For 2021, SLM Solutions is targeting revenue growth of at least 15% supported by strong machine backlog; EBITDA improvement expected to continue
• Outlook beyond fiscal year 2021 to benefit from the impact of sales from the industry leading NXG XII 600

Luebeck, 25 March 2021 - In fiscal year 2020, SLM Solutions Group AG ("SLM Solutions" or the "Company"), a leading global provider of additive manufacturing technology, generated Revenue of EUR 61.8 m (2019: EUR 49.0 m) and recorded an EBITDA of EUR -14.8 m (2019: EUR -26.0 m), reflecting a significant improvement in financial performance compared to prior year. Despite the economic and operational challenges that arose from the COVID19 pandemic in particular to customers in some of our key end markets, the industrial adoption of metal based Additive Manufacturing and in particular SLM Solutions' Powder Bed Laser Fusion technology has started. COVID19 related pressures on the global supply chains and traditional manufacturing practices in fact highlighted the many benefits presented by additive manufacturing technology and, we believe, will accelerate adoption.

SLM Solutions experienced a continuous improvement in business since the beginning of the second half of 2020. Order intake in H2 more than doubled compared to H1 to EUR 32.4 m (H1 2020: EUR 13.7 m). For the full year, the decline in order intake to EUR 46.1 m reflects the negative effects from COVID19 pandemic on key industries such as civil aviation and automotive (Order Intake FY 2019: EUR 67.7 m).

Sam O'Leary, CEO of SLM Solutions: "Laser Powder Bed Fusion continues to be the most dynamic driver of growth and innovation in the metal Additive Manufacturing market and SLM is proud to be leading the way. Despite the difficult COVID19 related business environment, we made tremendous progress in innovation and with key customers, adopting our technology on a larger scale. We launched our industry defining new machine platform, the NXG XII 600, in November 2020. The initial customer feedback we received has been overwhelming. We are convinced that the commercialization of the NXG XII 600 will be a significant growth driver for our business in the coming years."

Total Operating Revenue (the sum of consolidated revenue, inventory changes and other own work capitalised) of EUR 64.6 m increased by 44.1% (2019: EUR 44.8 m), mainly driven by the increase in revenue.

EBITDA for 2020 improved to EUR -14.8 m (2019: EUR -26.0 m), driven by sales volumes and higher gross margin, partly offset by higher personnel costs.

With about EUR 13 m, or ~20% of revenue, in research & development related spending, the Company continued to invest heavily in driving innovation and the integration of its products in larger scale industrial processes to maintain its established technological lead in the industry.

The consolidated net result of EUR -30.3 m increased significantly compared to the previous year (2019: EUR -47.1 m). This corresponds with earnings per share of EUR -1.53 (2019: EUR -2.38).

Outlook for FY2021

As communicated on February 15, 2021, SLM Solutions' management expects revenue growth of at least 15% compared to 2020 and an improvement in EBITDA compared to the previous year driven by a strong growth in second half due to increasing vaccination levels in key markets. For subsequent years, management estimates an acceleration of revenue growth due to the positive effects of the introduction of SLM's industry leading NXG XII 600 machine.

Dirk Ackermann, CFO of SLM Solutions: "With an order backlog of a 30 million euros at the beginning of the year, we are well positioned to achieve the revenue target for 2021. Furthermore, with the expected uptick in business in the second half of the year as well as positive effects from ongoing optimization initiatives, we expect a further improvement to our bottom line. Our current forecast cautiously assumes that the economic environment will slowly normalize and the COVID19 burdens will ease during the second half of 2021. Should our core markets recover faster than assumed in this scenario, we do not rule out a stronger sales growth than currently expected."

As communicated earlier this month, SLM Solutions expects the second tranche of its convertible bond 2020/2026 to be issued in April 2021. Planned use of proceeds of EUR 15 m includes, among other things, to scale-up manufacturing of the NXG XII 600 and expand the required services network.

SLM Solutions is assessing plans to establish a presence on the US West Coast to be closer to key customers. In addition, the Company is also evaluating a potential secondary listing of shares in the United States via a Level III ADR offering.

Publication of Annual Report 2020; Earnings Presentation on 25 March 2021

SLM Solutions' Annual Report for the financial year 2020 (German and English) will be made available in the course of the day in the "Investor Relations" section of www.slm-solutions.com. Today, 25 March 2021, at 4 p.m. CET, the Executive Board of SLM Solutions Group AG will present the figures for FY2020 in an earnings presentation. The presentation can be followed online via livestream: https://www.webcast-eqs.com/slmsolutions20210325

About the company:
Based in Lübeck, Germany, SLM Solutions Group AG is a leading global supplier of metal-based additive manufacturing technology. The company's shares are traded on the Prime Standard of the Frankfurt Stock Exchange. The company develops and produces 3D printing machines and integrated system solutions in the field of Selective Laser Melting. SLM Solutions currently employs more than 400 people in Germany, France, Italy, the USA, Singapore, Russia, India and China.

Contact:
Dirk Ackermann
SLM Solutions Group AG
E-Mail: [email protected]