SCHMID (SHMD) Registration filing summary

Company overview and business model

• Global supplier of equipment, software, and services for PCB, substrate manufacturing, photovoltaics, and energy storage, focusing on high-end technology and performance.

• Fifth-generation, family-controlled business founded in 1864, with manufacturing in Germany and China and a global sales/service network.

• Business model emphasizes modular machinery, R&D collaboration with customers, and innovation in embedded traces (ET) technology for advanced PCBs.

• Customers include major OEMs in semiconductors and consumer electronics, with a strong focus on R&D and next-generation technologies.

• Controlled company under Nasdaq rules, with 75.6% of shares held by the Schmid family and heirs.

Financial performance and metrics

• FY2023 revenue: €90.2 million; Adjusted EBITDA: €39.1 million (unadjusted for one-offs); Adjusted EBITDA excluding one-offs: €17.2 million.

• Gross profit margin decreased to 29.3% in 2023 from 35.2% in 2022 due to higher costs and lower revenue.

• Net income for 2023: €37.95 million, driven by reversal of impairments and exit bonuses.

• Cash and cash equivalents as of Dec 31, 2023: €5.7 million; significant debt repayments during 2023.

• Order backlog at end of 2023: €55 million; top two customers accounted for 38% of 2023 revenue.

Use of proceeds and capital allocation

• No proceeds from resale of shares/warrants by selling securityholders; proceeds from warrant exercises (if any) to be used for general corporate purposes.

• Aggregate potential gross proceeds from full warrant exercise: up to $241.5 million, but exercise is unlikely at current share prices.

• Company intends to retain earnings for future operations and expansion; no plans for dividends.