LPKF reports strategic successes and narrowly achieves forecast for 2023
financial year

EQS-News: LPKF Laser & Electronics SE / Key word(s): Annual Report
LPKF reports strategic successes and narrowly achieves forecast for 2023
financial year

21.03.2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Garbsen, 21 March 2024 - LPKF Laser & Electronics SE generated revenue of
EUR 124.3 million in the financial year (previous year: EUR 123.7 million)
and earnings before interest and tax (EBIT) of EUR 3.7 million (previous
year: EUR 6.8 million), putting the EBIT margin at 3.0% (previous year:
5.5%). Despite record revenue in the fourth quarter, both of these figures
are at the lower end of expectations. LPKF had forecast Group revenue of
between EUR 125 million and EUR 135 million and an EBIT margin of 3-7% for
the 2023 financial year.

Non-recurring effects reduced earnings by about EUR 0.7 million. These
include severance costs and the change in the value of virtual share options
issued in 2023. EBIT adjusted for these non-recurring effects came to EUR
4.4 million, with an adjusted EBIT margin of 3.5%.

Weak revenue growth was attributable primarily to operating factors such as
delays in project and order processing, which also indirectly reduced
profitability. To bring new products to market more quickly and flexibly,
the company is devoting considerable efforts to advancing modular operating
production scalability and standardizing the design-for-manufacturing
approach.
The Management Board initiated structural measures in 2023 to improve
efficiency and the fixed cost base and these will be expanded in the current
financial year with external support. The measures will begin to boost
LPKF's currently unsatisfactory profitability from the second half of 2024
onwards.

Order intake in the 2023 financial year came to EUR 120.2 million, down 3.3%
year on year (2022: EUR 124.2 million), and the order backlog declined from
EUR 63.2 million in the previous year to EUR 58.9 million as of 31 December
2023. LPKF also received a major order upwards of EUR 15 million in its
solar business in the first quarter of this year, which had originally been
expected at the end of 2023. The company therefore continues to see a
positive trend in its order intake.

The Management Board believes that LPKF has made good progress towards
achieving its strategic corporate targets in key areas in the 2023 financial
year. 'We have made significant progress with our integration in the
semiconductor market and entered the biotech market for the first time with
a new product. In the Electronics segment, we also massively stepped up our
market penetration for the high-precision depaneling of printed circuit
boards,' said Klaus Fiedler, Chief Executive Officer of LPKF SE.

In the company's core area, business in laser systems for printed circuit
board depaneling fared very well. The targets for 2023 were achieved and
further growth is expected. The Development segment also again performed
well in 2023 as a whole. LPKF is a market leader in Rapid PCB Prototyping.
The company's first and oldest segment has enjoyed steady and very solid,
profitable performance for many years.

The Welding segment fell short of expectations in the financial year. This
stemmed primarily from delays in follow-up orders from various medical
technology customers and the sales performance in individual regions. To
address this, countermeasures were established and implemented during the
financial year. In addition, LPKF also started key collaboration projects
with customers in cutting-edge markets in 2023.

Thanks to high global demand for renewable energies, the Solar segment is
enjoying strong growth. The major new order in this segment announced by the
company a few days ago is testimony to this. LPKF is the market leader in
structuring thin-film solar modules and is also actively involved in
developing and producing methods for processing new semiconductors such as
perovskites.

LPKF has achieved significant progress in new technologies. Several LIDE
systems (Laser Induced Deep Etching) are in operational use. 'Leading chip
manufacturers want and will have to use glass substrates in the future to
make high-performance chips, for example for AI applications, and so they
are increasingly pushing ahead with this technology,' said Fiedler. 'We
firmly believe that our LIDE technology will play a key role here as we can
offer our customers a high level of process maturity and tangible evidence
of performance.' The company has been working with major global players for
several years to make glass usable for the semiconductor and display
industry.

With ARRALYZE, LPKF once again demonstrated its commitment to disruptive
innovation and pioneering work. Part of this is having the courage to tap
new growth markets and serve these in the long term. ARRALYZE was developed
in response to growing demand for technologies capable of studying cell
populations at the single-cell level and isolating target cells. In February
2024, LPKF announced the commercial availability of CellShepherd®. This
platform is now ready to revolutionize cell-based research and development
across biomedical and various life science fields.

Outlook
LPKF expects Group revenue of between EUR 130 million and EUR 140 million
and an adjusted EBIT margin* of between 4% and 8% for the 2024 financial
year.

In the current first quarter, the Management Board anticipates Group revenue
of EUR 23 - 26 million and an adjusted EBIT between EUR -6 and -3 million.

In the medium term, as already communicated, LPKF aims to achieve an
attractive single-digit growth rate for its core business. In addition to
the core business, the new business initiatives in the semiconductor,
display and biotechnology markets are expected to contribute a total sales
in the low three-digit million euro range in the medium term. Based on the
growth in sales and the resulting economies of scale, the Management Board
aims to achieve an attractive double-digit EBIT margin for the LPKF Group in
the coming years.

The annual report is available in German and English at
https://www.lpkf.com/en/investor-relations/publications/financial-reports*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. Adjusted EBIT is reported in order to be
able to compare operating profitability between periods by eliminating
special items.
About LPKF
LPKF Laser & Electronics SE is a leading provider of laser-based solutions
for the technology industry. LPKF laser systems are of crucial importance to
the production of printed circuit boards, microchips, automotive parts,
solar modules and a large number of other components. Founded in 1976, the
company is headquartered in Garbsen near Hanover and operates worldwide via
subsidiaries and representative offices. The shares of LPKF Laser &
Electronics SE are traded in the Prime Standard segment of Deutsche Börse
(ISIN 0006450000).


Contact:
Bettina Schäfer, Senior Manager Investor Relations & Corporate Communication
Investorrelations@lpkf.com


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21.03.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        LPKF Laser & Electronics SE
                   Osteriede 7
                   30827 Garbsen
                   Germany
   Phone:          +49 (0) 5131 7095-0
   Fax:            +49 (0) 5131 7095-95
   E-mail:         investorrelations@lpkf.com
   Internet:       www.lpkf.com
   ISIN:           DE0006450000
   WKN:            645000
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1863527

End of News EQS News Service
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1863527 21.03.2024 CET/CEST