Puchheim, August 12, 2020

STEMMER IMAGING publishes financial figures for the first half of 2020: Despite a decline in revenue, STEMMER IMAGING achieves positive EBITDA - recovery tendencies at the end of the second quarter support full-year forecast

- Due to the Covid-19 pandemic, order intake declined in the first half of the year to EUR 53.2 million (H1 PY: EUR 55.0 million).

- Revenues decline by 10.3% to EUR 52.2 million (H1 PY: EUR 58.2 million).

- EBITDA declines to EUR 2.3 million (H1 PY: EUR 6.0 million) - focus on cost management pays off.

- Positive operating cash flow of EUR 4.0 million - solid basis for further business expansion with liquid funds of EUR 29.6 million and an equity ratio of 67.5%.

- In the consolidated financial statements for the first half of the year, non-cash impairments of goodwill and investments in affiliated companies were recognised in the amount of EUR 4.9 million.

- Full-year forecast confirmed - hesitant recovery in demand expected for second half of the year.

Puchheim, August 12, 2020 - STEMMER IMAGING AG (ISIN DE000A2G9MZ9 / GSIN A2G9MZ) today publishes its figures for the first half of 2020.

*2019 amounts normalised

Business development in the first half of 2020 was influenced by the Covid-19 pandemic. Revenues declined by 10.3% to EUR 52.2 million in the first six months of the 2020 fiscal year (H1 PY: EUR 58.2 million). In its half-year report 2020, the German Mechanical Engineering Industry Association (VDMA) reports a double-digit decline in sales for machine vision in Europe, with a massive 20% drop in industry sales for European markets outside Germany in particular. STEMMER IMAGING thus again benefited from its strategic position in areas of artificial vision such as medical & life science, pharmaceutical, food, logistics and packaging. Despite the corona crisis, these customer groups showed stable to growing order patterns. Shifts in demand, particularly in the areas of sports & entertainment, infrastructure and automotive, had a negative impact.

The gross profit margin fell slightly in the first half of the current fiscal year from (normalized) 36.8% in the same period of the previous year to 36.5%, due to the shift in the regional distribution of sales.

The operating result (EBITDA) in the first half of 2020 was EUR 2.3 million (EBITDA margin: 4.4%), significantly below the previous year's level of (normalised) EUR 6.0 million (EBITDA margin normalised: 10.3%). Here, the organic decline in sales and, in addition, the massively increasing currency effects from March onwards (net EUR 0.8 million) had a negative impact on the earnings situation. STEMMER IMAGING continues to be well equipped with liquidity and equity capital thanks to the positive operating cash flow of EUR 3.0 million in the second quarter, good working capital management and prudent investment activities.

The future prospects for the business of the Infaimon Group, particularly in Latin America, are considered to have deteriorated significantly in view of the ongoing Covid-19 pandemic and its economic impact. This leads to a value adjustment of EUR 4.3 million on the goodwill of the Infaimon Group in the consolidated financial statements for the first half of the year.

"Due to shifts on the demand side in the second quarter, the Covid-19 pandemic has also left a clear mark on our business. However, we are convinced that STEMMER IMAGING will emerge stronger from this crisis. We have used this period of change to review our strategic focus on the emerging post-Covid-19 trends and further sharpen our priorities in line with our growth strategy. At the same time, we have been able to cushion the temporary downturn in business with intelligent cost management and will align our organisation even more clearly to our future goals with a dedicated programme in the second half of the year," says Arne Dehn, CEO of STEMMER IMAGING AG.

While supply chain bottlenecks were well balanced in the first half of the year, demand in the second quarter was characterised by cautious demand planning and liquidity management on the part of our customers. This shift in demand had a significant impact on order intake. From the end of the second quarter, customers are again expanding their planning horizon and placing corresponding order call-offs. It is currently assumed that there will be a certain catch-up effect from the second quarter of 2020 on incoming orders in the further course of the year, which will be reflected in increasing revenue recognition in the second half of 2020.

STEMMER IMAGING expects the positive development of the first half of the year in the medical & life science, pharmaceutical, food, logistics and packaging sectors to continue in the second half of 2020. The outlook for the automotive sector, on the other hand, predicts a continued weak development in demand. For the sports & entertainment segment, the company expects to be able to make up for the loss of sales in the first half of the year in the second half on the basis of the order backlog. Overall, the company expects a slight delay in the resumption of incoming orders.

Despite all the current uncertainties and a significantly more unpredictable outlook due to the current situation, the Executive Board of STEMMER IMAGING AG confirms the previous forecast with revenues in the range of EUR 105.0 to 120.0 million and earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 3.0 to 7.0 million. In view of the slight shifts in order intake that have become apparent, the Management Board expects revenues and EBITDA to be in the lower half of the stated forecast ranges. This forecast is generally based on the assumption that there will not be an extensive second lockdown in the further course of the Covid-19 pandemic and that supply chains will remain largely intact. The forecast ranges already take into account certain negative developments on the customer and supplier side.

Also included in the forecast confirmation are one-off expenses of EUR 1.5 million planned for the second half of the year to further focus on the strategic orientation of the company and for structural cost-saving measures.

STEMMER IMAGING AG's half-year report as of 30 June 2020 is available for download at www.stemmer-imaging.com in the Investors section.
 

About STEMMER IMAGING:
STEMMER IMAGING is a leading international machine vision technology provider. With staff located across Europe, Latin America and Asia, the company provides state-of-the-art machine vision solutions, extensive knowledge and outstanding customer service.

Clients value STEMMER IMAGING as a trusted advisor, positioned to deliver tailored solutions. These include components that can be pre-configured where needed, sub-systems designed to reduce time and effort when integrating vertical applications, and customer-specific solutions delivering a competitive advantage to predominantly OEMs - all powered by renowned knowledge and leading software tools including the company's machine vision library "Common Vision Blox".

VISION.RIGHT.NOW. symbolises the STEMMER IMAGING mission to make machine vision easy and accessible, empowering customers to deliver world-class solutions.

Contact:
STEMMER IMAGING AG
Arne Dehn
Chief Executive Officer
Gutenbergstr. 9-13
82178 Puchheim
Phone: +49 89 80902-196
[email protected]
www.stemmer-imaging.com