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 proprietary embedded traces (ET) technology for advanced PCB and substrate production.

• Customers include major OEMs in semiconductors and consumer electronics; over 150 R&D staff out of 800 employees.

• Strategic focus on ET technology, automation, and software integration for next-generation manufacturing.

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 impairment reversals and exit bonuses.

• Cash and cash equivalents at year-end 2023: €5.7 million; current financial liabilities: €26.1 million; non-current financial liabilities: €22.2 million.

• Pro forma net loss for 2023 post-Business Combination: €45.2 million, mainly due to nonrecurring listing expenses.

Use of proceeds and capital allocation

• No proceeds from resale of shares/warrants by selling securityholders; up to $241.5 million may be received from warrant exercises if exercised for cash.

• Proceeds from warrant exercises to be used for general corporate purposes.

• Additional €30 million in cash payments related to acquisition of minority interest in Chinese subsidiary.

• Planned capital expenditures for 2024: up to €11 million, focused on growth initiatives.