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.

• Operates manufacturing sites in Germany and China, with a global sales and service network in the US, Europe, and Asia.

• Business model emphasizes R&D, with over 150 scientists and engineers among approximately 800 employees.

• Key innovation is the embedded traces (ET) technology for high-end PCBs and substrates, expected to drive future growth.

• Customers include major OEMs in the semiconductor and consumer electronics industries.

Financial performance and metrics

• FY2023 revenue: €90.2 million, down from €95.1 million in 2022, mainly due to weakened demand in China and Taiwan.

• Adjusted EBITDA for 2023: €39.1 million, but €17.2 million after adjusting for one-off effects (impairment reversal, exit bonuses, and business combination costs).

• Net income for 2023: €37.95 million, up from €3.59 million in 2022, driven by impairment reversals and exit bonuses.

• Cash and cash equivalents as of December 31, 2023: €5.7 million.

• Order backlog at year-end 2023: €55 million, expected to be recognized within one year.

Use of proceeds and capital allocation

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

• Aggregate potential proceeds from full warrant exercise: up to $241.5 million, though unlikely as current share price is below exercise price.

• Recent capital actions include debt set-offs and cash payments related to business combination and subsidiary acquisitions.