LPKF Laser & Electronics : 3-Month Financial Report 2022 (pdf - 854 KB)

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Quarterly Financial Report

1 JANUARY - 31 MARCH 2022

Content

CONTENT

At a glance ................................................................................................................................ 3

Letter from the Management Board ........................................................................................ 4

Interim Management Report as of 31 March 2022 ................................................................. 6

Basic information on the Group ....................................................................................... 6

Report on economic position ........................................................................................... 6

Supplementary report .................................................................................................... 10

Opportunities and risks .................................................................................................. 10

Report on expected developments ................................................................................ 10

Consolidated financial statements ......................................................................................... 13

Consolidated statement of comprehensive income .............................................................. 13

Consolidated statement of financial position ........................................................................ 14

Consolidated Statement of changes in equity ....................................................................... 16

Consolidated statement of cash flows ................................................................................... 18

Notes on the preparation of the quarterly financial report ................................................... 20

Financial calendar ................................................................................................................... 22

At a glance

AT A GLANCE

LPKF Laser & Electronics AG

Key Group figures after 3 months 2022
3 Months	3 Months
2022	2021
Revenue (Mio. EUR)	25.8	16.3
EBIT (Mio. EUR)	1.0	-4.1
EBIT margin (%)	4.0	-25.5
Free Cash Flow (Mio. EUR)	-9.1	-2.1
EPS, diluted (EUR)	0.03	-0.12
Incoming orders (Mio. EUR)	24.0	21.5
As of	As of
03/31/2022	03/31/2021
Net working capital (Mio. EUR)	29.2	19.5
Equity ratio (%)	70.2	74.6
Orders on hand (Mio. EUR)	60.8	43.5
Employees	746	700
Segments and markets

LETTER FROM THE MANAGEMENT BOARD

Garbsen, April 28th, 2022

Ladies and Gentlemen,

Despite a challenging year in 2021, we were able to increase revenue, earnings and order intake in the first quarter of 2022. Revenue increased by 59% to EUR 25.8 million, reaching the upper end of our quarterly forecast. We are particularly pleased that all segments were able to contribute to this growth. Our earnings also improved significantly and were at the upper end of our expectations. EBIT amounted to EUR 1.0 million in the first quarter, compared to a loss of EUR 4.1 million in the year ago quarter. This positive development was driven by the high demand for our technology and products, as well as by the project postponements from last year that we had previously communicated.

We continue to make targeted investments in the development and commercialization of key technologies. These specifically include the build-up of capacities for the innovative LIDE (Laser Induced Deep Etching) technology and the developments of the ARRALYZE technology, which addresses the rapidly growing life science market.

Our investments in the future are step by step paying off. In the first three months of the year, we also recorded a 12% year-on-year increase in incoming orders to EUR 24.0 million. These include the first LIDE systems for a new customer in Asia, who is using them to realize vias for new types of display applications. We are also pleased to report the first orders in the electronics sector for our newly developed Tensor systems. LPKF also won a customer in our welding segment, who is an innovation leader for batteries in the automotive sector. In addition, we made encouraging progress with our ARRALYZE technology and published the first scientific paper on the topic of "Suitability of glass arrays for single cell experiments"

following the successful presentation at SLAS Boston.

The interest in our solutions is high, and the increasing order numbers together with the results from the first quarter give us confidence for 2022. As of 31 March 2022, our orders on hand stand at EUR 60.8 million, up 40% on the previous year. This provides the momentum needed to significantly increase both revenue and earnings in the current year.

Thanks to the targeted further development of our product portfolio and our focus on growth markets, LPKF is well positioned to participate in the megatrends of miniaturization, digitalization and clean production. To this end, we will continue to make targeted investments in our technology to fuel growth.

Sustainability is an integral part of our strategy. As an innovative technology company, we provide our customers with smart solutions that improve their carbon footprint thanks to lower material use and higher product quality. We have also set ourselves specific ESG targets and backed these up with measures. This allows us to make our results in this areameasurable. Together with this quarterly report, we are publishing a"separate non-financialconsolidated report" that provides our stakeholders with a more comprehensive insight into our understanding of sustainability.

Short term visibility remains challenging. We continue to closely monitor the lockdown in China and the uncertainties in supply chains and logistics, and we are continuing to implement our countermeasures including increasing inventories of critical components. Challenges on outbound logistics, especially in the Solar Segment, have been considered in our Q2 guidance. Our goal remains to deliver long-term sustainable and profitable growth.

For the second quarter of 2022, we anticipate revenue of between EUR 25 million and EUR 30 million and EBIT in the range of EUR -1.5 million to EUR +2.5 million. For the full year 2022, we confirm our forecast and continue to expect consolidated revenue of between EUR 110 million and EUR 130 million and an EBIT margin between 2% and 7%. In this context, we continue to invest in our LIDE and ARRALYZE technologies.

We thank you for your continued support and trust.

Best regards,

Dr. Klaus Fiedler

Christian Witt

Chief Executive Officer

Chief Financial Officer