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LPKF Laser & Electronics SE Interim / Quarterly Report 2024
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Interim / Quarterly Report
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LIEKF
Laser \& Electronics
TOMORROW'S TECHNOLOGY TODAY
Quarterly Financial Report of LPKF Laser \& Electronics SE January 1 - September 30, 2024
CONTENT
At a glance ..... 3
Letter From The MANAGEMENT BOARD ..... 4
Interim Management Report as of 30 September 2024 ..... 7
1 Basic information on the Group ..... 7
2 Report on economic position ..... 7
3 Supplementary report ..... 11
4 Opportunities and risks ..... 11
5 Report on expected developments ..... 12
Consolidated financial statements ..... 15
Consolidated statement of comprehensive Income ..... 15
Consolidated Balance sheet ..... 17
Consolidated statement of changes in equity ..... 19
Consolidated statement of cash flows ..... 21
Notes on the preparation of the Quarterly Financial Report ..... 23
Financial calendar ..... 25
AT A GLANCE
LPKF Laser \& Electronics SE
Key Group figures after 9 months 2024
| 9 Months 2024 |
9 Months 2023 |
|
|---|---|---|
| Revenue (Mio. EUR) | 82.5 | 80.9 |
| EBIT (Mio. EUR) | $-6.7$ | $-4.6$ |
| EBIT margin (\%) | $-8.1$ | $-5.6$ |
| Adjusted EBIT (Mio. EUR) | $-5.6$ | $-4.6$ |
| Adjusted EBIT margin (\%) | $-6.8$ | $-5.6$ |
| Free Cash Flow (Mio. EUR) | $-1.7$ | $-13.6$ |
| EPS, diluted (EUR) | $-0.35$ | $-0.22$ |
| Incoming orders (Mio. EUR) | 84.1 | 94.0 |
| As of 09/30/2024 | As of 09/30/2023 | |
| Net working capital (Mio. EUR) | 35.5 | 33.7 |
| Equity ratio (\%) | 63.8 | 62.4 |
| Orders on hand (Mio. EUR) | 61.2 | 76.2 |
| Employees | 780 | 754 |
*After adjustments in accordance with IAS 8.41 ff . (see notes on the preparation of the financial report)
Segments and markets
LETTER FROM THE MANAGEMENT BOARD
Ladies and Gentlemen,
Today, we would like to give you an overview of the development and progress of LPKF Laser \& Electronics SE in the first nine months and in the third quarter of 2024. The economic conditions for mechanical engineering companies have not improved over the course of the year. The reluctance to invest in China and in the automotive sector is also noticeable for us in various areas. In this persistently difficult market environment, LPKF has performed solidly in operational terms.
At the same time, we have worked with an external consultant to identify potential improvements and given high priority to reducing our operating costs and increasing efficiency. We will implement a range of organizational and operational measures to reduce costs and strengthen the company for the long term.
In the area of our strategic initiatives, the continued increase in demand for our LIDE (Laser Induced Deep Etching) technology is particularly noteworthy. It is driven by the megatrend of artificial intelligence and the transformation towards glass substrates in the semiconductor market. It is now well established in the industry that our LIDE technology will play a crucial role in the future of the semiconductor industry. Specifically, we see that the entire supply chain is now preparing for the serial production of glass substrates.
Key financial figures for the reporting period
Sales revenues for the nine-month period reached EUR 82.5 million (9M 23: EUR 80.9 million), adjusted earnings before interest and taxes (EBIT) amounted to EUR -5.6 million, and EBIT totaled EUR -6.7 million (9M 23: EUR -4.6 million).
A look at the third quarter shows revenues of EUR 27.3 million (Q3 23: EUR 33 million) and EBIT of EUR -1.2 million (Q3 23: EUR 2.6 million). Adjusted EBIT in the third quarter was EUR -0.6 million. This is in line with our own guidance for the third quarter of 2024 (revenue between EUR 26 and 31 million, adjusted EBIT in the range of EUR -3 to 2 million).
Order intake after nine months was down 10.5\% year-on-year at EUR 84.1 million (9M 23: EUR 94.0 million). The order backlog fell from EUR 76.2 million in the previous year to EUR
61.2 million. We anticipate order entry in the Electronics and Solar segments to improve in the coming months, while we don't expect any short-term improvements in the Welding segment due to the weak automotive sector.
Highlights in the reporting period
In the Development segment, we are the market leader with our systems for rapid PCB prototyping. We have an attractive product portfolio and a well-filled project pipeline. After a weak first half of the year, we are seeing a significant upturn in business here as expected.
Since our new biotechnology division ARRALYZE entered the market, it has attracted a great deal of interest in various fields of application in single-cell analysis. In both Europe and the United States, we are working with partners who are testing the use of ARRALYZE in their own organizations. The recovering market environment is beneficial to our commercialization efforts.
Our solar business is supported by the global trend towards renewable energies and is developing as planned. In this segment, we noticed a reluctance among Chinese customers in the third quarter. Since the Chinese government introduced economic stimulus measures, this situation has improved again for LPKF.
In the third quarter, the Welding segment again fell well short of expectations in terms of revenue, earnings and new orders, mainly due to weak investment in the automotive industry. We have counteracted this by introducing a new product line to expand the addressable market. However, we do not expect to see any noticeable improvement in the near future and have therefore taken measures to significantly reduce operating costs.
In the Electronics segment, we continue to see good business with PCB depaneling systems. Thanks to our outstanding products, we can offer our customers significant competitive advantages and thus successfully hold our own even in a weak market environment. By contrast, the cyclically sensitive stencil business has fallen short of expectations this year.
The momentum in the LIDE systems business continues to be strong; we expect to double the sales relative to the previous year. With our patented LIDE process for glass processing, we deliver the key technology for increasing the performance of microchips. Major semiconductor manufacturers have publicly announced that they will use glass for advanced packaging. This initially concerns applications for AI-driven high-performance computing. This paradigm shift has led to a strong increase in demand for our unique and highly advanced LIDE systems. We are able to offer a mature process that has already proven itself in operational use. We also continue to see good opportunities for a series application of LIDE technology in the display area following the conclusion of our development partnership with a leading display manufacturer.
In collaboration with an external consultant, we have identified specific areas in which the company can improve efficiency and materially reduce costs. Concrete measures have been developed for these areas and are now being implemented with high priority. The aim is to reduce operating costs and increase efficiency throughout the Group. It is expected that this will result in total annualized savings of around EUR 5 - 7 million, which will significantly improve the EBIT margin in 2025.
Outlook
In the medium term, we continue to aim to increase the Group's profitability to an attractive double-digit EBIT margin. LIDE will play a major role in this and we are currently very satisfied with the momentum we are seeing in this area.
On the other hand, we have to face a number of challenges in the short term. These include the weak economy, the reluctance of key customers to invest, particularly in the automotive market, and the effects on our welding business. For this reason, we have slightly lowered our expectations for the current year.
For fiscal year 2024, we now expect Group sales of EUR 125 - 130 million (previously: EUR 130 - 135 million) and an adjusted EBIT margin between 3.5 - 6.5\% (previously: 4\% and 7\%).
In the medium term, we are aiming for attractive average growth in the upper single-digit percentage range for the core business, a low triple-digit million revenue figure for the new business fields and an attractive double-digit EBIT margin for the group.
We would like to thank our employees for their tireless commitment and you, our shareholders, for your trust and support.
Best regards,
Dr. Klaus Fiedler
Chief Executive Officer
Christian Witt
Chief Financial Officer
INTERIM MANAGEMENT REPORT AS OF 30 SEPTEMBER 2024
1 BASIC INFORMATION ON THE GROUP
The basic information on the LPKF Group in the combined management and Group management report for 2023 continues to apply unchanged. Changes in the scope of consolidation are presented in the notes to this interim report under "Notes on the preparation of the quarterly financial report".
2 REPORT ON ECONOMIC POSITION
2.1 NET ASSETS, FINANCIAL POSITION AND RESULTS OF OPERATIONS OF THE GROUP
Earnings situation
The LPKF Group generated consolidated revenue of EUR 27.3 million in the third quarter of 2024, down $17 \%$ on the same quarter of the previous year (EUR 33.0 million). Revenue after nine months totaled EUR 82.5 million, up $2 \%$ on the prior-year period (EUR 80.9 million). The increase resulted from the Solar segment (+ EUR 6.2 million). The Electronics (EUR -0.7 million), Development (EUR -2.6 million) and Welding (EUR -1.3 million) segments reported lower sales.
All segments (Solar: EUR -3.3 million, Welding: EUR -1.7 million, Development: EUR -0.6 million, Electronics: EUR -0.2 million) recorded a decline in sales in Q3 2024 compared to the same quarter of the previous year.
The higher expenses in the first nine months led to negative EBIT (earnings before interest and taxes) of EUR -6.7 million (previous year: EUR -4.6 million). EBIT in the third quarter amounted to EUR -1.2 million (previous year: EUR 2.6 million).
At EUR 84.1 million, incoming orders after nine months were down on the previous year's figure of EUR 94.0 million. At EUR 61.2 million, the order backlog as of September 30, 2024 was down on the previous year's figure of EUR 76.2 million.
Own work capitalized included EUR 3.4 million in development services for products and software (previous year: EUR 3.7 million). At EUR 2.4 million, other income was below the previous year's figure (previous year: EUR 2.6 million). The decrease compared to the same period of the previous year was mainly due to lower grants for research and development (EUR -0.2 million).
At $32 \%$, the cost of materials ratio was slightly below the previous year's figure of $34 \%$, which is mainly due to the product mix.
As of September 30, 2024, the LPKF Group employed 780 people, 26 more than on September 30, 2023. The increase in employees was mainly attributable to the Service and
Sales divisions. At EUR 43.1 million, personnel expenses in the reporting period were higher than in the previous year (EUR 39.5 million). The increase was mainly due to additions to personnel provisions and market-oriented salary adjustments.
At EUR 6.2 million, depreciation and amortization in the reporting period was EUR 0.8 million lower than in the previous year. Of this amount, EUR 2.5 million was attributable to depreciation from own work capitalized (previous year: EUR 3.4 million). At EUR 19.0 million, other operating expenses were higher than the previous year's figure of EUR 18.0 million. This increase was mainly due to higher expenses for travel and entertainment costs (+ EUR 0.5 million), sales commissions (+ EUR 0.5 million), R\&D costs (+ EUR 0.5 million), external work (+ EUR 0.4 million) and insurance (+ EUR 0.4 million). In contrast, advertising and sales expenses (EUR -0.5 million), miscellaneous other operating expenses (EUR -0.5 million) and expenses for currency losses (EUR -0.4 million) decreased.
Interest expenses for short-term drawings and loans were incurred to a small extent due to the use of overdraft facilities. After interest and taxes, the consolidated result amounted to EUR -8.5 million (previous year: EUR -5.3 million).
Financial position
The Group's cash and cash equivalents fell from EUR 10.7 million on December 31, 2023 to EUR 6.9 million in the reporting period.
Cash flow from operating activities amounted to EUR 3.3 million after nine months (previous year: EUR -7.7 million). The positive operating cash flow for the reporting period was mainly due to the reduction in net working capital. Advance payments received as of the reporting date of September 30 were roughly at the same level as of December 31, 2023, while the Group's receivables decreased by EUR 11.6 million. Liabilities fell by EUR 3.5 million. At the same time, inventories increased by EUR 3.6 million in order to secure upcoming deliveries. Therefore the net working capital improved by EUR 4.5 million in the first nine months.
In the third quarter, the cash inflow from operating activities amounted to EUR 5.7 million. At EUR 1.3 million, investments were below the level of the same quarter of the previous year.
After a cash outflow from investing activities of EUR -5.0 million in the first nine months (previous year: EUR -5.9 million), free cash flow amounted to EUR -1.7 million (previous year: EUR -13.6 million). There was a cash outflow from financing activities of EUR -2.5 million (previous year: EUR 5.7 million), mainly due to the repayment of short-term financial loans.
The LPKF Group has the necessary funds for investments and further growth, consisting of cash and cash equivalents and the available credit lines.
Net assets
Analysis of net assets and capital structure
Compared to December 31, 2023, non-current assets decreased by EUR 1.0 million to EUR 64.7 million. The change was mainly due to property, plant and equipment (EUR -1.5 million). This was offset by an increase in intangible assets of EUR 0.7 million.
Current trade receivables fell by EUR 11.6 million to EUR 24.8 million during the reporting period. Inventories increased by EUR 3.6 million to EUR 34.9 million. This is due to a targeted build-up of inventories to secure upcoming deliveries. Cash and cash equivalents decreased by EUR 3.8 million and amounted to EUR 6.9 million as at 30/09/2024. Overall, current assets decreased by EUR 10.9 million to EUR 71.9 million.
Net working capital decreased from EUR 40.0 million on December 31, 2023 to EUR 35.5 million on September 30, 2024. Inventories increased by EUR 3.6 million, while receivables fell by EUR 11.6 million. Liabilities decreased by EUR 3.5 million. Advance payments received for customer projects were at the level of 31.12.2023.
At $63.8 \%$ as of September 30, 2024, the equity ratio was below the ratio at the end of 2023 of $64.1 \%$. Based on the corresponding resolutions at the 2024 Annual General Meeting, stock options were issued to further employees of the Group in August 2024, as in the second quarter of 2024 for the CEO and CFO. Due to the intention to settle the options issued with shares, the accounting rules for equity-settled share-based payments apply. The valuation of the granted stock options at the valuation date, June 17, 2024, using a Monte Carlo simulation resulted in a fair value per option of $€ 1.26$ for the CEO (166,667 options), $€ 1.60$ for the CFO (112,500 options) and $€ 1.73$ for employees (134,209 options). On this basis, a pro-rata expense of EUR 0.1 million was recorded in the reporting period and allocated to the reserves for share-based payments in equity. No options are exercisable as of the September 30, 2024 reporting date. Full details of the type and content of the existing sharebased payments and a description of the main option conditions for determining the fair values and parameters used can be found in the notes to the consolidated financial statements for 2024.
Non-current liabilities increased by EUR 0.8 million. Current liabilities decreased by EUR 4.7 million to EUR 44.0 million, which is mainly due to a lower level of trade payables on the reporting date.
Beyond this, the balance sheet structure has not changed significantly.
Investments
In the first nine months of the year, the Group invested EUR 1.3 million less than in the same period of the previous year. Investments in property, plant and equipment and intangible assets amounted to EUR 5.0 million, while additions to capitalized development costs amounted to EUR 3.4 million.
Segment performance
The following table provides an overview of the operating segments' performance:
| Revenue | Adjusted EBIT | ||||
|---|---|---|---|---|---|
| in Mio. EUR | $\mathbf{9}$ Months $\mathbf{2 0 2 4}$ |
9 Months | 9 Months | ||
| 2023 | 2024 | $9$ Months | |||
| Electronics | 19.2 | ||||
| Development | 17.6 | 19.9 | |||
| Welding | 13.2 | 20.2 | |||
| Solar | 32.5 | 14.5 | |||
| Total | $\mathbf{8 2 . 5}$ | 26.3 | 1.0 | ||
| 80.9 |
*After adjustments in accordance with IAS 8.41 ff. (see notes on the preparation of the financial report)
The adjusted EBIT of the segments includes the operating business of the segments and the Group allocations attributable to them. The difference between the adjusted EBIT (EUR -5.6 million) and the Group EBIT (EUR -6.7 million) is the result of special effects from costs associated with severance payments, consulting costs for the earnings improvement program and the changes in the value of the virtual and real share options issued. They are not allocated to the segment result.
2.2 EMPLOYEES
The following table shows the development in employee numbers in the first nine months of 2024:
| 09/30/ | $12 / 31$ | |
|---|---|---|
| Area | $\mathbf{2 0 2 4}$ | 2023 |
| Development | 211 | 215 |
| Production | 147 | 150 |
| Service | 114 | 102 |
| Sales | 152 | 142 |
| Administration | 156 | 152 |
| Total | $\mathbf{7 8 0}$ | 761 |
The total number of employees as of Sept. 30, 2024, equals 736 Full Time Equivalents (FTE), compared to 714 FTE at year-end 2023.
2.3 OVERALL ASSESSMENT OF THE GROUP'S ECONOMIC SITUATION
Expectations for the German mechanical engineering sector are currently characterized by uncertainty and scepticism. Forecasts for the German economy are cautious. Political
developments and economic uncertainties worldwide are having a negative impact on expectations and the propensity to invest.
The LPKF Group is only moderately indebted in terms of working capital. In addition to its own cash and cash equivalents, LPKF also has liquidity reserves of EUR 25.0 million in cash following the conclusion of a new syndicated loan in October 2023. In addition to cash, the syndicated loan also includes a guarantee facility of EUR 15.0 million. The syndicated loan is provided by five global financing partners, has a term of three years and can be adjusted in terms of both amount and term with the approval of the financing partners.
The Management Board considers the earnings, net assets and financial position to be solid and orderly. It continues to assume that the Group has sufficient resources to continue its business activities for at least another twelve months and that the going concern assumption is appropriate as the basis for accounting.
3 SUPPLEMENTARY REPORT
CFO Christian Witt will leave LPKF Laser \& Electronics SE on December 31, 2024 by mutual agreement. The Supervisory Board is currently looking for a successor.
No other significant events with a material effect on the net assets, financial position or results of operations of LPKF have occurred since the reporting date on 30 September 2024.
4 OPPORTUNITIES AND RISKS
The opportunities and risks of the LPKF Group are presented and explained in detail in separate reports in the combined management and group management report 2023. These explanations apply unchanged.
Risks continue to exist in the uncertain global economic and demand situation, which is also influenced by armed conflicts worldwide. This affects customers' investment activities and can lead to delays in the placement of orders.
There are currently no risks that could jeopardize the company's existence, nor are any risks discernible for the future.
5 REPORT ON EXPECTED DEVELOPMENTS
5.1 MANAGEMENT'S ASSESSMENT OF THE GROUP'S EXPECTED DEVELOPMENT
Development of the Group
Declining order backlogs and continued high financing and energy costs in Europe are leading to weak and possibly fragile growth in the advanced economies, particularly in the capital goods industry.
LPKF Laser \& Electronics SE's strategic focus is on developing innovative, less cyclical technologies that have the potential to permanently change products, components and manufacturing in the electronics, semiconductor, display and other industries.
In the opinion of the Management Board, the company is financially stable and sustainably profitable. LPKF is in a position to expand its business activities by focusing even more strongly on customer needs and operational improvements. Investments in the development of new key technologies and their applications are being made in full despite the difficult economic conditions in the meantime. The LPKF Group's significantly increased diversification in recent years has considerably reduced its dependence on individual market segments and customers.
The Management Board continues to see great potential to sustainably increase the company's turnover and earnings. This potential stems from the technologies mastered by LPKF, its ability to integrate these into high-performance solutions, the exceptional expertise of its employees and the resulting value added for its customers.
The Management Board anticipates the following developments in the future:
- Megatrends such as miniaturization, artificial intelligence, connectivity, $\mathrm{CO}_{2}$ neutrality and demographic change will lead to high-precision manufacturing and analysis methods becoming more prevalent.
- Customer demand for efficient solutions for the manufacture of high-precision components and products remains high. The number of applications continues to increase. New product developments are proving their worth.
- LIDE technology and associated core competencies are being used for volume production, e.g. in the semiconductor or display industry, and are well on the way to establishing themselves as a key technology in this area.
- Green Energy will continue to gain importance and increase the demand for efficient solar modules.
- With ARRALYZE, LPKF gains access to the growth market of biotechnology, which is developing very dynamically due to the aging population and the trend towards individual therapies.
The Management Board will continue to drive the Company's growth in the current financial year with targeted measures:
- LPKF continues to invest in technology development to expand its leading position in laser micromaterial processing. In doing so, the company focuses on the specific parameters that are decisive for the economic success of its customers so that its customers gain a concrete competitive advantage. LPKF also develops disruptive applications for new growth markets along its core competencies.
- The scalability of solutions for customers is strengthened in a targeted manner, and non-scalable solutions are not pursued further in the long term.
- LPKF will specifically drive forward technologies that help customers save resources and produce more energy-efficiently.
- LIDE technology and related applications in the Advanced Packaging segment will be further expanded and the establishment in various application fields will be driven forward. LPKF will be established as a supplier to the semiconductor industry.
- The company will strengthen its sales activities and further expand and transform its market penetration in the individual segments.
- After-sales service will be further expanded as an additional growth platform.
- The organization, processes and systems will be designed to be scalable and geared to future growth.
- The Management Board is working on targeted measures to reduce fixed and variable costs in order to sustainably increase profitability.
- The Management Board will also pursue possible growth through M\&A activities, but only where the resulting increase in value is clearly discernible.
LPKF will remain agile and flexible as a company in order to be able to react quickly to any changes in the economic environment. Overall, LPKF expects further profitable growth in the medium term even in a volatile economic environment. Financially, the Company is and will remain well positioned and has the necessary funds for investments and further growth.
Key figures
Forecast for the 2024 financial year
In the medium term, LPKF continues to aim to increase the Group's profitability to an attractive double-digit EBIT margin. LIDE technology will play a key role in this. LPKF is currently very satisfied with the momentum in this area. In the short term, however, the company faces a number of challenges, including the weak economy, the reluctance of key customers to invest, particularly in the automotive market, and the impact on the Welding business. For this reason, expectations for the current year have been adjusted slightly downwards.
For the 2024 financial year, LPKF now expects consolidated revenue of EUR 125 to 130 million (previously: EUR 130 to 135 million) and an adjusted EBIT margin* of between $3.5 \%$ and $6.5 \%$
(previously: 4\% and 7\%), which corresponds to an adjusted EBIT of EUR 4.4 million to EUR 8.5 million.
Ambition for the years ahead
In the medium term, the company continues to expect sustainable growth in all segments. LPKF expects mid to high single-digit growth rates for its core business. The markets addressed by the new strategic business initiatives in the semiconductor, display and biotechnology sectors are targeted to generate annual revenue contributions in the low three-digit million range. In addition, LPKF aims to achieve an attractive double-digit EBIT margin in the Group through scaling effects.
*Adjusted EBIT is EBIT adjusted for restructuring and severance costs and changes in the long-term incentive (LTI) due to fluctuations in the performance factor or the share price. LPKF expects these costs to amount to $0.5-1.5 \%$ of revenue in the 2024 financial year. Adjusted EBIT is reported in order to be able to compare operating profitability between periods by eliminating special items.
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FROM 1 JANUARY TO 30 SEPTEMBER 2024
| in EUR thousand | $\begin{gathered} 01-09 / \ 2024 \end{gathered}$ | $\begin{gathered} 01-09 / \ 2023^{*} \end{gathered}$ |
|---|---|---|
| Revenue | 82,472 | 80,886 |
| Changes in inventories of finished goods and work in progress | 3,767 | 4,566 |
| Other own work capitalized | 3,427 | 3,807 |
| Other income | 2,400 | 2,609 |
| Cost of materials | $-30,524$ | $-31,807$ |
| Staff costs | $-43,141$ | $-39,456$ |
| Depreciation and amortization* | $-6,152$ | $-6,960$ |
| Impairment expenses (including reversals) on financial assets and contract assets | 47 | $-210$ |
| Other expenses* | $-19,001$ | $-17,993$ |
| Operating Result (EBIT) | $-6,705$ | $-4,558$ |
| Finance income | 2 | 12 |
| Finance costs* | $-755$ | $-304$ |
| Earnings before tax | $-7,458$ | $-4,850$ |
| Income taxes | $-1,086$ | $-462$ |
| Consolidated net profit/loss | $-8,544$ | $-5,312$ |
| Other comprehensive income | ||
| Items that will not be reclassified to profit or loss | ||
| Revaluations of defined benefit plans | 0 | 0 |
| Tax effects | 0 | 0 |
| Items that will be reclassified to profit or loss | ||
| Currency translation differences | 34 | 23 |
| Other comprehensive income after taxes | 34 | 23 |
| Total comprehensive income | $-8,510$ | $-5,289$ |
| in EUR | ||
| Earnings per share (basic) | $-0.35$ | $-0.22$ |
| Earnings per share (diluted) | $-0.35$ | $-0.22$ |
*After adjustments in accordance with IAS 8.41ff. (see notes on the preparation of the financial report).
FROM 1 JULY TO 30 SEPTEMBER 2024
| 07-09 / 2024 |
07-09 / 2023* |
|
|---|---|---|
| in EUR thousand | ||
| Revenue | 27,295 | 32,974 |
| Changes in inventories of finished goods and work in progress | 2,501 | 1,641 |
| Other own work capitalized | 1,150 | 1,222 |
| Other income | 776 | 836 |
| Cost of materials | $-10,836$ | $-13,567$ |
| Staff costs | $-13,523$ | $-12,306$ |
| Depreciation and amortization* | $-2,171$ | $-2,276$ |
| Impairment expenses (including reversals) on financial assets and contract assets | 0 | $-132$ |
| Other expenses* | $-6,394$ | $-5,805$ |
| Operating Result (EBIT) | $-1,202$ | 2,587 |
| Finance income | 1 | 0 |
| Finance costs* | $-189$ | $-147$ |
| Earnings before tax | $-1,390$ | 2,440 |
| Income taxes | $-198$ | $-196$ |
| Consolidated net profit/loss | $-1,588$ | 2,244 |
| Other comprehensive income | ||
| Items that will not be reclassified to profit or loss | ||
| Revaluations of defined benefit plans | 0 | 0 |
| Tax effects | 0 | 0 |
| Items that will be reclassified to profit or loss | ||
| Currency translation differences | 0 | 164 |
| Other comprehensive income after taxes | 0 | 164 |
| Total comprehensive income | $-1,588$ | 2,408 |
| in EUR | ||
| Earnings per share (basic) | $-0.07$ | 0.09 |
| Earnings per share (diluted) | $-0.07$ | 0.09 |
[^0]
[^0]: *After adjustments in accordance with IAS 8.41ff. (see notes on the preparation of the financial report).
CONSOLIDATED BALANCE SHEET
AS OF 30 SEPTEMBER 2024
| in EUR thousand | $\begin{gathered} 09 / 30 / \ 2024 \end{gathered}$ | $\begin{gathered} 12 / 31 / \ 2023 \end{gathered}$ |
|---|---|---|
| ASSETS | ||
| Intangible assets | ||
| and goodwill | 22,729 | 22,043 |
| Property, plant and equipment | 41,446 | 43,040 |
| Trade receivables | 0 | 23 |
| Other financial assets | 301 | 301 |
| Other non-financial assets | 19 | 20 |
| Deferred tax assets | 168 | 245 |
| Non-current assets | 64,663 | 65,672 |
| Inventories | 34,876 | 31,269 |
| Trade receivables | 24,802 | 36,394 |
| Contract Assets | 598 | 0 |
| Income tax receivables | 904 | 955 |
| Other non-financial assets | 3,779 | 3,505 |
| Cash and cash equivalents | 6,909 | 10,678 |
| Current assets | 71,868 | 82,801 |
| Total assets | 136,531 | 148,473 |
| in EUR thousand | $\begin{gathered} 09 / 30 / \ 2024 \end{gathered}$ | $\begin{gathered} 12 / 31 / \ 2023 \end{gathered}$ |
|---|---|---|
| EQUITY | ||
| Subscribed capital | 24,497 | 24,497 |
| Capital reserve | 15,463 | 15,463 |
| Other reserves | 12,639 | 12,174 |
| Net retained profits | 34,477 | 42,982 |
| Equity | 87,076 | 95,116 |
| LIABILITIES | ||
| Provisions for pensions and similar obligations | 325 | 346 |
| Other financial liabilities | 967 | 1,391 |
| Deferred income | 907 | 374 |
| Contract liabilities | 216 | 99 |
| Trade payables | 0 | 172 |
| Other provisions | 518 | 185 |
| Deferred tax liabilities | 2,571 | 2,114 |
| Non-current liabilites | 5,504 | 4,681 |
| Other provisions | 2,723 | 3,067 |
| Other financial liabilities | 11,384 | 12,216 |
| Deferred income | 36 | 88 |
| Trade payables | 6,475 | 9,790 |
| Contract liabilites | 17,521 | 17,647 |
| Other non-financial liabilities | 5,812 | 5,868 |
| Current liabilities | 43,951 | 48,676 |
| Liabilities | 49,455 | 53,357 |
| Total equity and liabilities | 136,531 | 148,473 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS OF 30 SEPTEMBER 2024
| Other reserves |
|||
|---|---|---|---|
| in EUR thousand | Subscribed capital | Capital reserve | Other retained earnings |
| As of 01/01/2024 | 24,497 | 15,463 | 10,529 |
| Consolidated net profit/loss | |||
| Other comprehensive income after taxes | |||
| Total comprehensive income | 0 | 0 | 0 |
| Changes in the consolidation scope | |||
| Share-based payment | |||
| As of 09/30/2024 | 24,497 | 15,463 | 10,529 |
| Other reserves | |||
| in EUR thousand | Subscribed capital | Capital reserve | Other retained earnings |
| Adjusted as of 01/01/2023 | 24,497 | 15,463 | 10,529 |
| Consolidated net profit/loss | |||
| Other comprehensive income after taxes | |||
| Total comprehensive income | 0 | 0 | 0 |
| Adjusted as of 09/30/2023 | 24,497 | 15,463 | 10,529 |
| Revaluations of defined benefit plans | Share-based payment reserve | Foreign currency translation reserve | Net retained profits | Total equity |
|---|---|---|---|---|
| $-547$ | 490 | 1,701 | 42,982 | 95,115 |
| $-8,544$ | $-8,544$ | |||
| 275 | 35 | 310 | ||
| 275 | 0 | 35 | $-8,544$ | $-8,234$ |
| 39 | 39 | |||
| 156 | 0 | 156 | ||
| $-272$ | 646 | 1,736 | 34,477 | 87,076 |
| Revaluations of defined benefit plans | Share-based payment reserve | Foreign currency translation reserve* | Net retained profits* | Total equity |
|---|---|---|---|---|
| $-208$ | 490 | 1,920 | 41,228 | 93,919 |
| $-5,312$ | $-5,312$ | |||
| 0 | 22 | 22 | ||
| 0 | 0 | 22 | $-5,312$ | $-5,290$ |
| $-208$ | 490 | 1,942 | 35,916 | 88,629 |
CONSOLIDATED STATEMENT OF CASH FLOWS
FROM 1 JANUARY TO 30 SEPTEMBER 2024
| in EUR thousand | $\begin{gathered} 01-09 / \ 2024 \end{gathered}$ | $\begin{gathered} 01-09 / \ 2023^{*} \end{gathered}$ |
|---|---|---|
| Cash flow from operating activities | ||
| Consolidated net profit/loss* | $-8,544$ | $-5,312$ |
| Adjustments: | ||
| Tax expenses | 1,085 | 462 |
| Financial expenses* | 755 | 304 |
| Financial income | $-2$ | $-12$ |
| Depreciation/amortization of non-current assets* | 6,152 | 6,960 |
| Gains/losses on the disposal of property, plant and equipment | $-15$ | 1 |
| Impairment losses/reversals | 320 | 918 |
| Other non-cash expenses and income | 325 | 1 |
| Changes: | ||
| Inventories | $-4,015$ | $-9,971$ |
| Trade receivables | 11,626 | $-2,189$ |
| Other assets | $-871$ | $-1,822$ |
| Provisions | $-31$ | 67 |
| Trade payables | $-3,310$ | 1,901 |
| Other liabilities | 281 | 1,980 |
| Other: | ||
| Interest received | 2 | 12 |
| Income taxes refund (paid) | $-501$ | $-1,042$ |
| Cash flow from operating activities | 3,257 | $-7,742$ |
| Cash flow from investing activities | ||
| Investments in intangible assets | $-3,582$ | $-4,603$ |
| Investments in property, plant and equipment | $-1,420$ | $-1,721$ |
| Revenue from the disposal of assets | 14 | 418 |
| Cash flow from investing activities | $-4,988$ | $-5,906$ |
*After adjustments in accordance with IAS 8.41ff. (see notes on the preparation of the financial report).
| in EUR thousand | $\begin{gathered} 01-09 / \ 2024 \end{gathered}$ | $\begin{gathered} 01-09 / \ 2023^{*} \end{gathered}$ |
|---|---|---|
| Cash flow from financing activities | ||
| Dividends paid | 0 | 0 |
| Interest paid | $-591$ | $-297$ |
| Proceeds from (financial) borrowings | $-700$ | 9,801 |
| Payments of lease liabilities* | $-159$ | $-685$ |
| Payments for repaying loans | $-1,000$ | $-3,150$ |
| Cash flow from financing activities | $-2,450$ | 5,669 |
| Change in cash and cash equivalents | ||
| Increase (decrease) in cash and cash equivalents | $-4,181$ | $-7,979$ |
| Cash and cash equivalents as of 1 January | 10,678 | 12,785 |
| Effects of exchange rate changes on cash and cash equivalents | 412 | 228 |
| Cash and cash equivalents as of end of reporting period | 6,909 | 5,034 |
*After adjustments in accordance with IAS 8.41ff. (see notes on the preparation of the financial report).
NOTES ON THE PREPARATION OF THE QUARTERLY FINANCIAL REPORT
This financial report as of September 30, 2024 fully complies with the provisions of IAS 34 and the interpretations of the International Financial Interpretations Committee (IFRIC). The figures for the previous period have been calculated in accordance with the same principles, unless new standards require a change. The same applies to the accounting policies and calculation methods used in the interim financial statements.
Standards to be applied for the first time in the current financial year have already been applied. Estimates of amounts presented in previous interim reporting periods of the current financial year, the last annual financial statements or in previous financial years have not been changed in this financial report. Detailed explanations on the adjustment of prior-year figures in accordance with IAS 8 can be found in the notes to the consolidated financial statements as of December 31, 2023 in section B. Principles of preparation of the consolidated financial statements. There have been no significant changes to contingent liabilities and contingent assets since the last reporting date. This financial report has not been audited or reviewed by an auditor. Information on events of particular significance after the balance sheet date is provided in the supplementary report of the interim management report.
Basis of consolidation
In addition to the Group's parent company LPKF Laser \& Electronics SE, Garbsen, the following subsidiaries have been included in the consolidated financial statements:
| Name | ||
|---|---|---|
| Full consolidation | Registered office | Equity interest in \% |
| LPKF SolarQuipment GmbH | Suhl, Germany | 100.0 |
| LPKF WeldingQuipment GmbH | Fürth, Germany | 100.0 |
| LPKF Laser \& Electronics d.o.o. | Naklo, Slovenia | 100.0 |
| LPKF Distribution Inc. | Tualatin (Portland), US | 100.0 |
| LPKF (Tianjin) Co. Ltd. | Shanghai, China | 100.0 |
| LPKF Shanghai Co., Ltd. | Shanghai, China | 100.0 |
| LPKF Laser \& Electronics K.K. | Tokyo, Japan | 100.0 |
| LPKF Laser \& Electronics Korea Ltd. | Seoul, Korea | 100.0 |
| LPKF Laser \& Electronics Vietnam Co., Ltd. | Bac Ninh/Vietnam | 100.0 |
To streamline and simplify the Group structures, LPKF Laser \& Electronics Trading (Shanghai) Co. Ltd. was finally wound up in the second quarter of 2024. Any activities of the company were already transferred to other Group companies in previous years.
Transactions with related parties
There are no reportable business relations with persons affiliated to the LPKF Group.
Garbsen, 24th October 2024
LPKF Laser \& Electronics SE
The Management Board
Dr. Klaus Fiedler
Chief Executive Officer
Christian Witt
Chief Financial Officer
FINANCIAL CALENDAR
| 27 March 2025 | Publication of Annual Report 2024 |
|---|---|
| 30 April 2025 | Publication of 3-months report |
| 04 June 2025 | Annual General Meeting |
| 24 July 2025 | Publication of 6-months report |
| 30 October 2025 | Publication of 9-months report |
CONTACT \& PUBLISHING INFORMATION
Published by
LPKF Laser \& Electronics SE
Osteriede 7
30827 Garbsen
Germany
Tel.: +49 5131 7095-0
Fax: +49 5131 7095-90
E-Mail: [email protected]
www.lpkf.com
Inventor Relations contact
LPKF Laser \& Electronics SE
Bettina Schäfer
Tel.: +49 5131 7095-1382
E-Mail: [email protected]
Internet
For more information on LPKF Laser \& Electronics SE and the addresses of our subsidiaries, please go to www.lpkf.com. This financial report can also be downloaded from our website.
Disclaimer
This financial report contains forward-looking statements that are based on the Management Board's current estimates and forecasts and on information currently available. These forward-looking statements are not to be understood as guarantees of forecast future performance and results. Instead, future performance and results depend on a large number of risks and uncertainties and are based on assumptions that might not prove accurate. We disclaim any obligation to update these forward-looking statements. For mathematical reasons, rounding differences may occur in percentage figures and numbers in the tables, illustrations and texts of this report.
This financial report is published in German and English. In case of any discrepancies, the German version shall prevail.
LPKF Laser \& Electronics SE
Osteriede 7
30827 Garbsen
Germany
Phone: +49 5131 7095-0
Telefax: +49 5131 7095-90
www.lpkf.com