LPKF Laser & Electronics : Analyst Conference, 21 März 2024

Annual Report 2023

Conference Call

21 March 2024 | Klaus Fiedler, CEO - Christian Witt, CFO

AGENDA

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02

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Market and Business Development, Klaus Fiedler, CEO

Financials 2023, Christian Witt, CFO

Q&A

2

LPKF Laser & Electronics SE

KEY TAKEAWAYS FROM FINANCIAL YEAR 2023

Financial performance at lower end of guidance

• Revenue with € 124.2 million at lower end of guidance.

Rest of World

Rest of Europe 3%

Germany 13%

• EBIT-margin with 3.0 % at lower end of guidance, adjusted EBIT-margin at 3.5%

Important strategic progress in several key areas

• Solid foothold in semiconductor market with glass processing technology
• Launch of first product in biotech market
• Strong demand in solar segment from broad customer base continues
• Strong growth in Laser Depaneling
• Solid performance in Prototyping

Guidance 2023: Revenue between EUR 125 - 135 million, EBIT margin between 3% and 7%.

9%

Asia

38%

Americas

37%

€ 124M

R E V E N U E

I N 2 0 2 3

LPKF Laser & Electronics SE

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BUSINESS DEVELOPMENT

MARKET SITUATION

• Heterogeneous situation
  in Electronics. Good adoption of new technologies, but little capacity expansion.
• Increasing market activities
  for advanced packaging using LIDE
• The market for thin-film solar is growing, with strong global investments in new technologies.
• Established markets for laser welding below expectations, with good growth in E-mobility.
• Stable market for Rapid Prototyping.
• First biotech product (ARRALYZE) released after extended beta phase.

LPKF Laser & Electronics SE

BUSINESS DEVELOPMENT

• Perovskites as a new thin-film solar technology show increasing market demand.
• New products in Electronics show good growth, while demand for legacy products is slow.
• Good market traction for E-mobility solutions in laser welding, established markets slow.
• Semiconductor demand for LIDE increasing, display projects under customer evaluation.
• Order entry on track, with large solar order (>€15M) received in Q1.

OPERATIONS

• Supply situation significantly improved with individual shortages.
• Operational bottlenecks in Solar and Welding limited 2023 revenue - structural improvements running.
• Fixed cost inflation requires additional measures to improve efficiency.

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Annual Report 2023

Financials

21 March 2024 | Christian Witt, CFO

KEY GROUP FIGURES FY 2023

in Mio. EUR	12 Months | 2023	12 Months | 2022	∆
Revenue	124,3	123,7	1%
EBIT	3,7	6,5	-43%
EBIT margin (%)	3,0	5,3
Incoming orders	120,1	124,3	-3%
Earnings per Share (EUR)	0,07	0,06	17%
Free Cashflow	-11,1	0,3	>-100

	As of 12/31/2023	As of 12/31/2022
Orders on hand	58,9	63,2	-7%
Employees (total number)	761	740	3%
Net cash	-0,7	11,7	-106%

LPKF Laser & Electronics SE

Sales, profit, cash

and orders

• Sales stable but below expectations
• Gross margin slightly improved despite F/X
• EBIT follows sales as expected and includes investments esp. in ARRALYZE
• Cost reduction measures started, to
  be continued in 2024 w/ external support
• Correction of 2022 EBIT by 0.26m depreciation
• Working Capital up due to strong December & preproduction Solar for Q1
• Order entry and backlog improved when considering Q1 24 Solar order

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REVENUE AND EBIT BY SEGMENT

		Revenue
	0
		12 Months	12 Months	∆
in Mio. EUR	2023	2022
	0
Electronics	32,7	31,5		3,8%
Development	29,0	28,2		2,8%
Welding	23,1	25,6		-9,8%
Solar	39,5	38,4		2,9%
Gesamt	124,3	123,7	0,5%

EBIT
12 Months	12 Months	∆
2023	2022

-2,5	-2,2	-13,6%
2,9	3,9	-25,6%
-1,0	1,3	-176,9%
4,3	3,5	22,9%
3,7	6,5	-43,1%

ELECTRONICS

Higher sales in Depanelingbutlower sales in Stencil.

Continuingselective structuralmeasures to reduce fixed cost; higher(planned) depreciation.

LPKF Laser & Electronics SE

DEVELOPMENT

Successful year for Rapid Prototyping.Slightly negative F/X impact.

Investment inARRALYZE affects EBIT, market launch in H1/2024 successful; first commercial use of CellShepherd®.

WELDING	SOLAR
Operation issues has limited sales	Strong year 2023 butstill belowpotentialdue
OB/OI stable, automotive slower	to operationalissues; 2022 includedrevenue
ofcustomer pushoutsfrom past yr.
Profit mostly follows sales, also impacted by	Improvedprofitabilityand cost consciousness
operationalissues
despite operationalissues
	7

FREE CASHFLOW

in Mio. EUR	12 Months | 2023	12 Months | 2022
Net Working Capital	40,0	26,0
∆ Working Capital	14,0	6,7
Net cash used in / generated by
operating activities	-3,4	8,5
Net cash used in
investing activities	-7,7	-8,2
Free cashflow	-11,1	0,3
Net cash position as per
12/31/2023	-0,7	11,7

LPKF Laser & Electronics SE

Free Cash Flow

Net Working Capital

• Receivables high due to strong Q4/December and operational issues in Solar
• Pre-assemblySolar increases stock, Stock reduction for two other BUs on track
• Payables compensating other NWC
• Mid term target continues to be NWC 10 - 15% of annual sales

Free Cash Flow follows NWC

Net Cash +/- neutral - solid balance sheet

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2023 GUIDANCE AND MID-TERM ASPIRATION

Actuals 2023	Guidance FY 2024	Guidance Q1 2024
REVENUE		Revenue
Revenue	Revenue
EUR 124.3 MILLION		EUR 23 - 26 million
EUR 124,2 million	EUR 130 - 140 million
EBIT-MARGIN3.0 %
EBIT-margin
ADJUSTED EBIT-
3.0% MARGIN*
Adjusted EBIT-margin*	Adjusted EBIT-margin*	Adjusted EBIT*
3.5%
3.5%	4 - 8%	EUR -6 to -3 million

*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.

LPKF Laser & Electronics SE

Mid-Term Aspiration

Core Business

• Medium to high single-digit growth for core business

New Technologies

• New technologies like LIDE and ARRALYZE can together contribute low triple-digit millions in revenue

EBIT-margin

• EBIT margin to reach attractive double- digit level

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Annual Report 2023

Q&A

21 March 2024 | Klaus Fiedler, CEO - Christian Witt, CFO