Puchheim, August 11, 2022

STEMMER IMAGING shows double-digit inflation-adjusted growth with significantly increased EBITDA margin of 15.6% and confirms full-year guidance

• Order intake of EUR 88.7 million up 7.1% on prior-year period (H1 2021: EUR 82.8 million)
• Revenue increase by 13.8% to EUR 72.4 million in H1 2022 (H1 2021: EUR 63.6 million)
• Disproportionate increase in EBITDA by 42.8% to EUR 11.3 million
• EBITDA margin of 15.6% (H1 2021: 12.2%) in the upper range of the target corridor of the medium-term guidance
• Executive Board confirms forecast for fiscal 2022

Puchheim, August 11, 2022 - STEMMER IMAGING AG (ISIN DE000A2G9MZ9 / GSIN A2G9MZ) today publishes its figures for the first six months and second quarter of the current fiscal year.

*Previous year's values adjusted due to new valuation method implemented for trading in standard software licences

STEMMER IMAGING completed a successful first half of 2022, improving its key profitability figures for the tenth quarter in a row.

Order intake in the first half of 2022 increased by 7.1% year-on-year to EUR 88.7 million (H1 2021: EUR 82.8 million). In the second quarter of 2022, order intake increased by 4.4% quarter-on-quarter to EUR 45.3 million (Q1 2022: EUR 43.4 million). The delay in the delivery of a major order with a total value of more than EUR 12.0 million mentioned in the Q1 reporting was made up for by a higher delivery volume in the second quarter. STEMMER IMAGING expects full delivery of this order and thus an increase in delivery volume in the second half of the year. The book-to-bill ratio for both the first half and the second quarter was 1.2.

In the first six months of 2022, revenue increased by 13.8% to EUR 72.4 million (H1 2021: EUR 63.6 million). Revenue in the second quarter increased by 12.6% to EUR 36.5 million (Q2 2021: EUR 32.4 million). The inflation effect on revenues is estimated at approx. 2-3% for the first half of 2022. Accordingly, the inflation-adjusted organic growth was in the double-digit target range.

For the first six months of 2022, the VDMA industry association reports market growth in machine vision of 12% in Germany and 12% in Europe. According to the VMDA, order intake rose by 14% in Germany and by 6% in Europe.

In the first half of 2022, Germany, France, the Netherlands and the Scandinavian countries in particular recorded above-average growth. STEMMER IMAGING was able to further expand its market position in the artificial vision area of sports and entertainment, among others, and benefited disproportionately in the second quarter from the catch-up effects of the aforementioned major order. In the industrial applications segment, especially the market for raw materials and recycling recorded strong growth in the second quarter.

The gross profit margin continued to benefit from a shift in the revenue structure towards higher-margin business with value-added services. However, against the backdrop of a changed regional mix and exchange rate effects in USD, the gross margin of 37.4% in Q2 2022 was slightly below the prior-year period (Q2 2021: 38.8%). Increased material costs due to purchases on the spot market did not yet have a significant impact on the gross margin in the first half of the year.

Profitability measured by EBITDA increased significantly in the first half of 2022. The operating result (EBITDA) reached EUR 11.3 million in the first six months (H1 2021: EUR 7.9 million) and was thus 42.8% higher than in the same period of the previous year. The EBITDA margin increased to 15.6% (H1 2021: 12.2%) and was thus in the upper range of the target corridor of the medium-term guidance of 13-16%. In Q2 2022, STEMMER IMAGING generated EBITDA of EUR 5.8 million (Q2 2021: EUR 4.2 million), an increase of 38.7% year-on-year, and an EBITDA margin of 16.0% (Q2 2021: 13.0%).

The improvement in earnings was positively influenced by active cost management, the robust margin situation and the strong organic revenue growth. The focus remains on expanding the high-margin business with value-added services.

Operating cash flow increased by 55.4% to EUR 4.1 million in H1 2022 (H1 2021: EUR 2.6 million), and for the second quarter this was 31.8% higher than in the same period last year at EUR 2.3 million (Q2 2021: EUR 1.7 million). The operating cash flow was positively influenced mainly by the strong operating result.

Price increases and, increasingly, the effects of rising energy costs, as well as supply chains that remain strained, will continue to strongly shape the economic environment in the second half of 2022. STEMMER IMAGING is countering the effects of inflation with adjusted and closely coordinated cost management as well as by passing on supplier price increases.

Based on the half-year figures and current estimates for the second half of the year, the Executive Board of STEMMER IMAGING confirms its forecast for the fiscal year 2022. The Executive Board maintains its range for revenue of between EUR 143 million and EUR 156 million and is not specifying this any further due to high inflation and the current uncertainties. The Executive Board also confirms the EBITDA range of EUR 19-24 million and expects the EBITDA margin for 2022 to be above the previous year's level (EBITDA margin 2021: 13.3%).

Arne Dehn, CEO of STEMMER IMAGING AG:
"We had a successful first half year and were able to achieve a double-digit inflation-adjusted growth. With an EBITDA margin of 16% in the second quarter, we achieved the best operating result in the company's history and were able to show growth for the tenth quarter in a row. In a challenging environment, we remain focused on the implementation of our strategic roadmap with the expansion of the high-margin Solution Business. The results to date confirm the strategy we have adopted. At the same time, we are continuing active cost management."

The half-year report of STEMMER IMAGING AG as of June 30, 2022, is available for download at www.stemmer-imaging.com in the Investors section.

A webcast on the financial results for the second quarter and first half of 2022 will be held today (August 11, 2022) at 14:00 CEST for analysts, institutional investors and members of the press. To participate in the conference call, participants are asked to register via this link.

About STEMMER IMAGING:
Stemmer Imaging is the leading international partner for machine vision technology.

Our offering combines an extensive commercial range for industrial and non-industrial applications. With a high level of expertise and value-added services STEMMER IMAGING additionally offers pre-configured subsystems dedicated to specific applications.

For over 35 years, we have been supporting our customers to take a leading role in their markets – in the meantime also in other European countries and in Latin America.

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