As 3dpbm anticipated earlier this month, SLM Solutions generated revenues of €61.8 million, growing by 26% and reflecting a significant improvement in financial performance compared to the prior year. Despite the economic and operational challenges that arose from the COVID19 pandemic in particular to customers in some of key end markets, the industrial adoption of metal-based additive manufacturing and in particular SLM Solutions’ Powder Bed Laser Fusion technology has started. COVID19 related pressures on the global supply chains and traditional manufacturing practices in fact highlighted the many benefits presented by additive manufacturing technology and, we believe, will accelerate adoption.
SLM Solutions experienced a continuous improvement in business since the beginning of the second half of 2020. Order intake in H2 more than doubled compared to H1 to €32.4 million (H1 2020: €13.7 million). For the full year, the decline in order intake to €46.1 m reflects the negative effects from COVID19 pandemic on key industries such as civil aviation and automotive (Order Intake FY 2019: EUR 67.7 m).
“Laser Powder Bed Fusion continues to be the most dynamic driver of growth and innovation in the metal Additive Manufacturing market and SLM is proud to be leading the way,” said Sam O’Leary, CEO of SLM Solutions: “Despite the difficult COVID19 related business environment, we made tremendous progress in innovation and with key customers, adapting our technology on a larger scale. We launched our industry-defining new machine platform, the NXG XII 600, in November 2020. The initial customer feedback we received has been overwhelming. We are convinced that the commercialization of the NXG XII 600 will be a significant growth driver for our business in the coming years.”
Outlook for FY2021
As communicated on February 15, 2021, SLM Solutions’ management expects revenue growth of at least 15% compared to 2020 and an improvement in EBITDA compared to the previous year driven by strong growth in the second half due to increasing vaccination levels in key markets. For subsequent years, management estimates an acceleration of revenue growth due to the positive effects of the introduction of SLM’s industry-leading NXG XII 600 machine.
“With an order backlog of 30 million euros at the beginning of the year, we are well-positioned to achieve the revenue target for 2021. Furthermore, with the expected uptick in business in the second half of the year as well as positive effects from ongoing optimization initiatives, we expect a further improvement to our bottom line,” said Dirk Ackermann, CFO of SLM Solutions. “Our current forecast cautiously assumes that the economic environment will slowly normalize and the COVID19 burdens will ease during the second half of 2021. Should our core markets recover faster than assumed in this scenario, we do not rule out a stronger sales growth than currently expected.”
As communicated earlier this month, SLM Solutions expects the second tranche of its convertible bond 2020/2026 to be issued in April 2021. Planned use of proceeds of €15 m includes, among other things, scaling-up the manufacturing of the NXG XII 600 and expanding the required services network.
SLM Solutions is assessing plans to establish a presence on the US West Coast to be closer to key customers. In addition, the Company is also evaluating a potential secondary listing of shares in the United States via a Level III ADR offering.