Basler AG: Business figures for the first nine months of 2023 - restructuring on track, forecast confirmation for 2023 at the lower end

Corporate News

Business figures / Nine-Month Report

Business figures for the first nine months of 2023: Restructuring on track, forecast confirmation for 2023 at the lower end

• Sales: Euro 157.5 million (previous year: Euro 205.2 million, -23 %)
• Incoming orders: Euro 128.3 million (previous year: Euro 209.7 million, -39 %)
• EBITDA: Euro 3.3 million (previous year: Euro 36.8 million, -91 %)
• EBITDA before restructuring: Euro 9.7 million
• Pre-tax result: Euro -16.1 million (previous year: Euro 24.3 million, >-100 %)
• Pre-tax result before restructuring: Euro -5.8 million
• Pre-tax profit margin: -10.2 % (previous year: 11.8 %)
• Free cash flow: Euro -11.1 million (previous year: Euro -38.6 million)
• Forecast confirmation 2023 at the lower end: Sales Euro 200 million - Euro 205 million, pre-tax loss between Euro 18 million and Euro 20 million

Ahrensburg, November 8, 2023 – BASLER AG, a leading provider of image processing components for computer vision applications, is today presenting final figures for the first nine months of 2023.

The Basler group closed the first nine months of 2023 with incoming orders of Euro 128.3 million (previous year: Euro 209.7 million, -39 %) and sales of Euro 157.5 million (previous year: Euro 205.2 million, -23 %). This resulted in a pre-tax result of Euro -16.1 million (previous year: Euro 24.3 million) at a pre-tax return on sales of -10.2% (previous year: 11.8%). In addition to the weak operating business, extraordinary restructuring expenses of Euro 10.3 million had a negative impact on earnings in the third quarter.

The almost balanced operating cash flow amounted to Euro -0.1 million (previous year: Euro 2.5 million). This includes significant payments for termination agreements that were already due in the third quarter. Cash flow from investing activities amounted to Euro -11.0 million (previous year: Euro -41.1 million). Compared to the previous year, this includes only minimal special effects from M&A transactions and investments in fixed assets were managed very restrictively due to the savings and restructuring programs. Overall, this led to a free cash flow of Euro -11.1 million (previous year: Euro -38.6 million).

Cancellations decreased significantly in the third quarter, however, incoming orders decreased again compared to the previous quarter to a level of Euro 34.3 million. Sales fell to Euro 41.4 million in the same quarter (previous year: Euro 74.4 million). The reason for these declines was the persistently weak demand from the equipment industries for consumer electronics, logistics and laboratory automation in Asia and North America, as well as the lack of economic recovery in China. Furthermore, as expected, demand in Europe also gradually deteriorated over the course of the year. In addition, increased inventories as a result of excessive orders during the chip crisis dampened demand, which was already weak.

It is assumed that the excess inventories held by customers will be reduced to a normal level by the end of the year and that the dampening effect on demand will then subside. There are currently no signs of a trend reversal in terms of original demand.

These developments on the market are also reflected in the statistics of the German Engineering Federation (VDMA) for German manufacturers of machine vision components. The German Engineering Federation (VDMA) reports a nominal year-on-year decline in sales of 11 % for German manufacturers of machine vision components as at the end of September 2023. Incoming orders in the industry fell by 19 % in the same period. In September, incoming orders fell by as much as 32 % in nominal terms compared to the previous year and sales also fell by 32 %.

The restructuring program initiated by the company in July was largely implemented in the third quarter and negatively impacted the quarterly result by € 10.3 million due to extraordinary personnel expenses and provisions as well as write-offs on discontinued development projects as a result of the headcount reduction. The lower personnel costs will have a significant impact in the fourth quarter, as the majority of the severance agreements will take effect at the beginning of the fourth quarter. The company remains committed to completing all major restructuring actions by the end of the year.

As part of the restructuring, long-time management board member Arndt Bake has asked the supervisory board not to renew his management board contract. Instead, he will focus on leading the EMEA sales organization and driving the company's market position in Europe and its transformation into a full-range supplier. The supervisory board supports this wish and Arndt Bake's management board contract as Chief Digital Officer and Chief Innovation Officer will therefore expire at the end of the year. The company will not fill the position on the management board for the time being, and the remaining three members of the management board will divide the responsibilities among themselves accordingly from January 1, 2024.

As the measures are progressing according to plan, the forecast adjusted in July can be confirmed, although it has been narrowed to the lower end of the corridor due to the continued weak markets. Based on current information, the company expects to achieve sales of between Euro 200 million and Euro 205 million (previously Euro 200 million to Euro 215 million) and a pre-tax loss of between Euro 18 million and Euro 20 million (previously Euro 12 million to Euro 20 million). The loss will largely result from one-time special charges, currently estimated at Euro 11 million to Euro 13 million.

The full quarterly report can be viewed on the company's website (www.baslerweb.com).

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Basler AG is an international leader and experienced expert in computer vision. The company offers a broad coordinated portfolio of vision hardware and software. In addition, it enables customers to solve their vision application issues by developing customer-specific products or solutions. Founded in 1988, the Basler Group employs more than 1,000 people at its headquarters in Ahrensburg, Germany, as well as other sales and development locations throughout Europe, Asia, and North America.

Basler AG, Hardy Mehl (CFO/COO), An der Strusbek 60 – 62, 22926 Ahrensburg, Tel. +49 (0)4102-463101, ir/baslerweb.com, www.baslerweb.com, ISIN DE 0005102008