STEMMER IMAGING: expectedly challenging market environment in Q1 2024 -
positive signals in order intake - Full-year forecast confirmed

EQS-News: STEMMER IMAGING AG / Key word(s): Quarter Results/Quarterly /
Interim Statement
STEMMER IMAGING: expectedly challenging market environment in Q1 2024 -
positive signals in order intake - Full-year forecast confirmed

08.05.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Puchheim, May 8, 2024

STEMMER IMAGING: expectedly challenging market environment in Q1 2024 -
positive signals in order intake - Full-year forecast confirmed

Puchheim, May 8, 2024 - STEMMER IMAGING AG (ISIN DE000A2G9MZ9 / GSIN A2G9MZ)
publishes its figures for the first quarter of 2024 today.

  * Increase in order intake to EUR 33.1 million compared to the two
    previous quarters

  * Due to market conditions revenue reduced by 31.9% to EUR 27.5 million
    (Q1 2023: EUR 40.4 million) compared to strong prior-year quarter

* Further increase in gross margin to 39.9% (Q1 2023: 39.1%)

  * EBITDA margin at 14.9% (Q1 2023: 18.2%): EBITDA at EUR 4.1 million (Q1
    2023: EUR 7.4 million, -44.4%)

  * Operating cash flow up by 70.6% to EUR 9.4 million (Q1 2023: EUR 5.5
    million)

* Full-year forecast confirmed

  * Successful closing of the acquisition of Phase 1 Technology Corp., New
    York, USA

As expected, STEMMER IMAGING navigated through a challenging market
environment in the first quarter 2024. Order income increased to EUR 33.1
million compared to the third and fourth quarters of 2023, providing
positive signals for the further course of business. At the same time,
revenue reduced by 31.9% to EUR 27.5 million compared to a strong first
quarter of the previous year. The renewed gross margin increase to 39.9% and
the improved cost structure resulting from the efficiency measures
implemented in the last fiscal year (quarterly effect of EUR 1.6 million)
had a mitigating effect on the profitability caused by the decline in
business, resulting the EBITDA to reduce by 44.4% to EUR 4.1 million. The
company once again reported strong key figures with an operating cash flow
of EUR 9.4 million. The acquisition of Phase 1 Technology Corp. in New York,
USA, was successfully completed as planned at the beginning of May 2024. The
full-year forecast is confirmed.

  KEY FIGURES                    01.01.-31.03.2024  01.01.-31.03.2023  YOY
  (in MEUR)                      (Q1 2024)          (Q1 2023)
  Order Intake                   33.1               36.1               - 8.3%
  Revenue                        27.5               40.4               - 31.9%
  EBITDA                         4.1                7.4                - 44.4%
  EBIT                           3.1                6.3                - 50.5%
  EBT                            3.1                6.3                - 50.8%
  Net Income                     2.2                4.6                - 51.3%
  Earnings per Share (in EUR)    0.34               0.71               - 52.1%

In a challenging market environment, STEMMER IMAGING was able to increase
its order intake to EUR 33.1 million compared to the previous quarters of
the second half of 2023 (Q3 2023: EUR 30.1 million, Q4 2024: EUR 25.0
million). Incoming orders in Factory Automation stabilized at a low level
compared to the two last quarters. Important strategic projects were won in
the automotive market despite generally weak demand. In the industrial
Machine Vision market, Metrology performed well. In addition, the Artificial
Vision market recorded some positive developments, particularly in new
customer business for Sports & Entertainment and in a continuously growing
demand in the Medical and Food & Agriculture markets.

As expected, the previously reported decline in demand in the prior quarters
resulted in lower revenue in the first quarter. In the first three months of
2024, revenues of EUR 27.5 million were generated, which corresponds to a
decline of 31.9% compared to the strong prior-year figure (EUR 40.4
million). This revenue decrease was the result of a slowdown across almost
all end markets. The acquisition of new customers only partially mitigated
this deterioration. The positive business development in Latin America could
only marginally compensate for the decline in Europe.

The gross margin once again developed positively. It manifested at a strong
39.9% compared to 39.1% in the same period of the previous year and
underlines the company's value proposition even in phases of weaker market
demand. The efficiency measures implemented in the last fiscal year had a
positive impact, reducing OPEX by EUR 1.6 million (excluding the positive
currency effect of EUR 0,3 million) compared to the same period in the
previous year. The company was thus able to partially mitigate the decline
in revenue in the profitability effect and reported an EBITDA of EUR 4.1
million (Q1 2023: EUR 7.4 million, -44.4% compared to the previous year).
The EBITDA margin was 14.9% (Q1 2023: 18.2%). EBIT amounted to EUR 3.1
million (Q1 2023: EUR 6.3 million). Earnings per share declined to EUR 0.34
(Q1 2023: EUR 0.71).

STEMMER IMAGING's operating cashflow again developed strongly at EUR 9.4
million (Q1 2023: EUR 5.5 million). The inventory value was reduced from EUR
12.7 million at the end of the 2023 fiscal year to EUR 11.4 million as of
March 31, 2024.

Thanks to the further developed sales structures and the comprehensively
revised service offering SI More, STEMMER IMAGING considers itself an
attractive strategic partner for machine vision technology customers in the
areas of engineering and operational services. The organizational ONE
initiatives further enhance the flexibilization of capacities.

With the closing of the acquisition of Phase 1 Technology Corp., New York at
the beginning of May, the company will report consolidated figures as of
May. The positive customer and supplier feedback received after the
announcement of the acquisition confirms STEMMER IMAGING's strategic
approach of expanding its activities in the area of value-added services in
North America. Expanding the portfolio by image sensor technology in the
North American market is holding a strategically significant growth
potential. Collaborating with Sony enables STEMMER IMAGING to explore new
areas for AI applications on increasingly powerful decentralized processor
platforms.

Despite the still challenging market conditions, marked by temporary
investment reluctance in significant end markets, the Executive Board
expects a continued positive trend in order intake. It is anticipated that
deliveries will steadily improve no later than from the third quarter
onwards. Based on this outlook, the Executive Board reaffirms the previously
projected revenue range of EUR 140 to EUR 157 million for the current fiscal
year and confirms the EBITDA forecast of EUR 24 to 31 million.

Arne Dehn, CEO of STEMMER IMAGING, explains: 'We were aware - and we already
communicated this last year - that the start of 2024 in particular would be
challenging. Our sharpened service offerings and the focused go-to-market
initiatives are showing success with important order wins. The efficiency
measures have aligned our organization not only in terms of a further
scalable cost structure, but above all in terms of taking advantage of
market opportunities. True to the motto 'Never miss a crisis', STEMMER
IMAGING has already shown in past recessionary market phases that we can
emerge much stronger from them.'

The quarterly report of STEMMER IMAGING as of March 31, 2024 is digitally
available on the company's website in the Investors section ( Investors -
Financial reports | STEMMER IMAGING (stemmer-imaging.com)).

Today (May 8, 2024) at 16:00 CEST, a webcast on the financial results for
the first quarter will be held for analysts, institutional investors, and
members of the press.


About STEMMER IMAGING
STEMMER IMAGING is the leading international systems house for machine
vision technology.

With a background of all-round engineering expertise, STEMMER IMAGING
delivers the entire spectrum of machine vision services for both, industrial
and non-industrial applications - from value-added services to the
development of subsystems and its own products, based on an extensive
commercial range of products.

Contact:
STEMMER IMAGING AG
Michael Bülter
Chief Financial Officer
Gutenbergstr. 9-13
82178 Puchheim
Germany
Phone +49 89 80902-196
ir@stemmer-imaging.com
www.stemmer-imaging.com


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   Language:       English
   Company:        STEMMER IMAGING AG
                   Gutenbergstr. 9-13
                   82178 Puchheim
                   Germany
   Phone:          +49 89 80902-196
   E-mail:         ir@stemmer-imaging.com
   Internet:       www.stemmer-imaging.com
   ISIN:           DE000A2G9MZ9
   WKN:            A2G9MZ
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1897629

End of News EQS News Service
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1897629 08.05.2024 CET/CEST