NanoFocus AG: First half of 2019 marked by strategic and operational relaunch

NanoFocus AG: First half of 2019 marked by strategic and operational relaunch

- Sales +13.3 % to KEUR 5,427, loss significantly reduced
- First successes with customer orientation, industry focus and OEM
- Challenges posed by the crisis in the automotive industry and the possibility of an escalating trade conflict
- Forecast for 2019 confirmed

Oberhausen, den 30.08.2019 - NanoFocus AG (ISIN: DE0005400667), developer and manufacturer of industrial 3D surface measurement technology, today published its half-year report 2019. The company's realignment had a positive impact for the first time in the reporting period. At the same time, the crisis in the automotive industry and the possibility of an escalating trade conflict pose serious challenges for NanoFocus.

In the first half of 2019, NanoFocus increased sales by 13.3 percent from KEUR 4,788 to KEUR 5,427. The cost-cutting measures initiated at the beginning of 2019 showed initial success. This enabled the loss to be reduced at all earnings levels. The operating result before interest, taxes, depreciation and amortization (EBITDA) after the first six months of 2019 was KEUR -124 (previous year: KEUR -1,254) and the net result KEUR -618 thousand (previous year: KEUR -1,731). As of June 30, 2019, NanoFocus had an order backlog of KEUR 2,963 (previous year: KEUR 1,989).

"We have been able to achieve important initial successes in our key areas of customer orientation, industry focus and OEM. The closer cooperation with our subsidiary Breitmeier Messtechnik GmbH was very pleasing. Together, we have successfully implemented project business in the field of multisensor technology with the automotive industry in Germany and outside Europe," says Michael Trunkhardt, sole member of the Management Board of NanoFocus AG since April 2019. "But there are also challenges to be taken seriously. The German automotive industry is undergoing a dramatic change that will have a major impact on suppliers. The slump in investment in the classic power train complex of combustion engines came faster and more noticeably than many had expected. The industry is characterized by unprecedented uncertainty. As a result, sales of our laboratory systems in the first half of the year were well below expectations."

Perspectives in e-mobility
NanoFocus was unable to fully compensate for the decline in classic drive technology in the first half of the year. Nevertheless, the company sees good order prospects in the mobility focus sector. NanoFocus is excellently positioned in e-mobility and in the development of fuel cells. In addition, there are drive-independent areas such as functional surfaces and cockpit equipment. Particularly in the optimization and establishment of new technologies such as fuel cells or on-board electronics, there is a considerable need for high-precision measurement technology in order to qualitatively secure new manufacturing processes.

Semiconductor and Electronics
In the second focus sector Semiconductor/Electronics, NanoFocus' business developed according to plan in the first half of 2019. Projects were realized with well-known semiconductor manufacturers in Korea and China. One step towards better tapping Asian market potential and part of the new strategy is the expansion of OEM and project business. A first reference project for the development of an OEM sensor system for the semiconductor industry is in the planning phase. Overall, the order situation in the semiconductor/electronics segment is positive. However, it remains to be seen how the trade conflict between the USA and China will continue. A further intensification could also have an impact on German suppliers and measuring equipment manufacturers.

Forecast for 2019 confirmed
After the development in the first half of 2019, NanoFocus confirms its forecast for the full year and continues to expect revenues of EUR 11.5 million to EUR 12.5 million, an EBITDA margin of 3 to 4 percent and a slightly negative EBIT. Due to the difficult overall economic situation, the company currently expects sales and EBITDA to be at the lower end of the respective corridor.

NanoFocus AG's half-year report 2019 for download: nanofocus.de/investor-relations/finanzberichte

About NanoFocus AG:
NanoFocus AG (ISIN: DE0005400667), founded in 1994, has its headquarters in Oberhausen and is internationally established as a technology leader for optical 3D surface metrology - with a worldwide customer base and sales network. As a specialist for optical 3D surface inspection in production and quality assurance, the company focuses on the development of high-precision optical 3D measuring systems and appropriate software. NanoFocus AG's products are used in industrial manufacturing as well as in science and the research sector of high-tech industries such as medical technology, solar industry, forensics, electronics and automotive industry, materials science and steel industry.www.nanofocus.de

Disclaimer:
This notification constitutes neither an offer for sale nor an invitation to submit a bid for purchase or subscribe for securities. There are no public tenders for securities of NanoFocus AG. This notification does not constitute a securities prospectus. This notification and the information it contains are not intended for direct or indirect transfer to or within the United States of America, Canada, Australia or Japan.