Balyo : 23/10/2019 - BALYO announces its sales revenue to September 30, 2019, up +20%, and +15% after restatement

BALYO announces its sales revenue to September 30,

2019, up +20%, and +15% after restatement1

• • Order intake of €4.0 million in the third quarter
  • Backlog2 of €13.7 million at September 30, 2019
• Appointment of Benoît de la Motte as Chief Financial Officer

Ivry-sur-Seine,France, October 23, 2019, 6.00 pm CEST - BALYO (FR0013258399, Ticker: BALYO, eligible for PEA-PME savings schemes), a technological leader in the design and development of innovative robotic solutions for material handling trucks, today announces its sales revenue for the first nine months and third quarter to September 30, 2019.

Fabien Bardinet, Chairman and Chief Executive Officer, says: "BALYO has recorded a 20% increase in sales revenue before IFRS restatement, associated with the backlog level at the start of the year. Our growth remains limited by a slowdown in the sales momentum in 2019, reflecting temporary difficulties in the deployment of certain projects. These difficulties are the subject of targeted action plans jointly undertaken by BALYO's teams and partners. We firmly believe that the means implemented with the support of our industrial partners, BALYO's technological leadership and the unwavering commitment of the teams will ensure a rapid recovery in order growth. Within this framework, we are delighted to welcome our new Chief Financial Officer Benoît de la Motte, whose arrival will enable us to accelerate the Company's industrial transformation".

	In thousands of		Q3 2018	Q3 2019	9M 2018	9M 2019	Change
	euros		9M-19/9M-18
	EMEA region	4,342	3,798	12,473	12,529	-
	Americas	723	923	1,432	3,345	+134%
	region
	APAC region	(84)	775	784	1,767	+125%
	Sales revenue	4,981	5,497	14,689	17,640	+20%
	IFRS2 BSA	0	(47)	0	(739)	Na
	charge
	Reported sales	4,981	5,450	14,689	16,901	+15%
	revenue*
* Unaudited data

1. Inclusion of the IFRS2 charge associated with the allocation of BSA equity warrants: in accordance with the agreement signed on January 10, 2019, the beneficiary of BSA can exercise these warrants depending on that Company's purchase of products incorporating BALYO technology.
2. The backlog refers to all orders for projects received but not yet fulfilled. The backlog evolves every quarter following the taking into account of new orders, the revenue generated by projects during the period and the cancellation of orders.

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Q3 2019 activity

BALYO recorded sales revenue of €5.5 million in the third quarter of 2019, an increase of +10% compared with the third quarter of 2018 before IFRS2 restatement, and +20% for the first 9 months of the year. During the quarter, BALYO booked an IFRS2 charge of €47 thousand simultaneously to the sales revenue generated with the beneficiary of the stock warrants (BSA), leading to restated sales revenue of €5.4 million, up +9% on last year.

Activity in Europe has stabilized, while sales revenue recorded so far this year in the United States and Asia has risen sharply, by +134% and +125% respectively. In the third quarter, BALYO commissioned 24 robots. At September 30, 2019, the number of robots employed by end users was thus 536.

Once third-quarter orders of €4.0 million are taken into account, at September 30, 2019 the Company had a backlog of €13.7 million, compared with a record €23.0 million a year ago.

2019 sales revenue growth has been limited by a slowdown in the sales momentum over the period, reflecting temporary difficulties in the deployment of certain projects. These difficulties are the subject of action plans undertaken by BALYO's teams in collaboration with the Company's partners with the aim of boosting the growth in orders.

Appointment of Benoît de la Motte as Chief Financial Officer

Benoît de la Motte, who has been Chief Financial Officer in tech-intensive industries (Carmat, Nexeya) for the last 10 years, is a graduate of the EM business school in Lyon, has an MBA from Pace University in New York and is a certified chartered accountant. Benoît has over 20 years of experience in finance. His proficiency in this respect will be a major asset in helping BALYO's transformation and industrial development. Benoît is replacing Stanislas Piot, who left the Company in October 2019 and who the entire BALYO team would like to thank for his commitment and pivotal contribution to the Company.

Strategy and outlook

The issue of automating logistics flows in warehouses is one that concerns all international industrial players. BALYO's technological leadership in this fundamental trend is globally recognized.

The work carried out by BALYO's teams in liaison with its industrial partners (accelerated training of the installation teams specific to our partners, gradual transfer to robotic production within their units) and the roll-out of new-generation installation tools in 2020 will allow BALYO to resorb the temporary difficulties encountered in 2019 and to develop the Company's ability to capture stronger growth.

Within this framework, BALYO is maintaining its medium-term revenue growth target of €200 million. However, as previously announced, the slowdown in the sales momentum in 2019 has led the Company to push back its loss-reduction goal.

Next financial press release: 2019 annual sales revenue, on January 30, 2020.

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ABOUT BALYO

Balyo transforms standard forklift trucks into standalone intelligent robots thanks to its breakthrough proprietary Driven by Balyo™ technology. The geoguidance navigation system developed by Balyo allows vehicles equipped with the system to locate their position and navigate autonomously inside buildings. Within the automated handling vehicle market, Balyo has entered into two strategic agreements with Kion Group AG (Linde Material Handling's parent company) and Hyster-Yale Group, two major operators in the material handling sector. Balyo is present in three major geographic regions (Americas, Europe and Asia-Pacific). Its sales revenue reached €23.3 million in 2018. For more information, please visit our website at www.balyo.com.

CONTACTS

BALYO	NewCap
Benoît de la Motte	Financial Communication and Investor Relations
Chief Financial Officer	Thomas Grojean/Louis-Victor Delouvrier
[e-mail]	Tel: [phone]
	[e-mail]

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