EQS-Adhoc: Basler AG:

Insider Information according to Article 17 MAR
Preliminary business figures / 9-month report 

Preliminary business figures for the first 9 months of 2024: Lack of market recovery requires organizational and forecast adjustments 

• Sales: EUR 136.8 million (previous year: EUR 157.5 million, -13 %) 

• Incoming orders: EUR 133.5 million (previous year: EUR 128.3 million, +4 %) 

• EBITDA: EUR 9.0 million (previous year: EUR 3.3 million, >+100 %) 

• EBT: EUR -4.9 million (previous year: EUR -16.1 million) 

• Free cash flow: EUR 1.5 million (previous year: EUR -11.1 million) 

• Forecast adjustment 2024: sales of EUR 178 to 184 million (previously EUR 190 to 200 million), EBT of EUR –8 to –12 million (previously pre-tax return rate of 0 to 3 % and pre-tax earnings of EUR 0 to 6 million) 

• Cost-reduction program and change in the Management Board 

Ahrensburg, October 21, 2024 - Basler AG, a leading supplier of image processing components for computer vision applications, today presents preliminary figures for the first nine months of the fiscal year 2024. 

The Basler group closed the reporting period with sales of EUR 136.8 million (previous year: EUR 157.5 million; -13%) and earnings before taxes of EUR -4.9 million (previous year: EUR -16.1 million). After incoming orders and sales developed positively in the first half of 2024, demand cooled again in the third quarter. Sales fell from EUR 49.5 million in the previous quarter to EUR 43.7 million. Incoming orders fell from EUR 48.5 million in the previous quarter to EUR 41.0 million.  

The accumulated pre-tax loss increased from EUR -2.3 million at mid-year to EUR -4.9 million at the end of the reporting period, mainly as a result of weak sales in the third quarter.  

The operating cash flow for the first nine months amounted to EUR 12.8 million (previous year: EUR -0.1 million). Cash flow from investing activities amounted to EUR -11.3 million (previous year: EUR -11.0 million) and includes payments for investments amounting to EUR 4.2 million. In total, this led to a positive free cash flow of EUR 1.5 million (previous year: EUR -11.1 million).  

The declining sales development of Basler AG coincides with a phase of restrained macroeconomic prospects, globally declining purchasing managers' indices for the industry and continuing geopolitical uncertainty. In particular, the low demand from the equipment industries for consumer electronics, logistics and laboratory automation, the subdued domestic economy in China and the increasing slowdown in the previously robust European market interrupted the slight market recovery that began in the first half of the year during the summer months. The German Engineering Federation (VDMA) therefore reduced its sales forecast for the German computer vision industry at the beginning of October and now expects industry revenue to fall by 10 % year-on-year in 2024.   

As a result, the Management Board is convinced that the lowering of the break-even point to below EUR 200 million achieved in 2023 will not be sufficient to return the Basler group to profitability in the long term. The Management Board has therefore decided to lower the break-even point for the 2025 financial year to a level below EUR 180 million. To this end, personnel costs will be reduced, and material costs and investments will be frozen at the current level. Most of the measures are to take effect at the beginning of the new financial year.   

As a result of the accumulated loss, the weakening market in the second half of the year and the one-off expenses associated with the reduction in personnel, the Management Board is significantly adjusting the sales and earnings forecast for the 2024 financial year. Sales revenue is now expected to be within a corridor of EUR 178 to 184 million (previously EUR 190 to 200 million). The expected one-off expenses amount to around EUR 5.5 million. Depending on the occurrence of the remaining sales risks and whether the planned headcount reduction can be fully implemented by the end of 2024, this will result in a negative pre-tax result within a corridor of EUR –8 to –12 million (previously pre-tax return rate of 0 % to 3 % and pre-tax result of EUR 0 to 6 million). 

The Supervisory Board is taking the correction of the sales and earnings forecast as an opportunity to restructure the Management Board. Alexander Temme, the former Chief Commercial Officer (CCO) of Basler AG, is leaving the company by the end of the year. The CCO position will be taken over by Hardy Mehl, Deputy Chairman of the Management Board and Chief Financial Officer of Basler AG for many years. Hardy Mehl has been with the company for 25 years and has many years of experience in the industry as well as in the international marketing of computer vision products due to his previous activities at Basler AG. To support Hardy Mehl, the company will temporarily engage senior management capacity from the marketing sector. The Supervisory Board would like to express its sincere thanks to Alexander Temme for his great commitment and wishes both of them every success and all the best. Furthermore, the Supervisory Board has arranged the succession of Hardy Mehl in his role as CFO. The CFO position at Basler AG has been reoccupied with effect from January 1, 2025. Details about the person will be announced during the 4th quarter. 

The complete nine-month report will be published on November 7, 2024. 

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Basler AG is a leading international expert in computer vision. The company offers a broad portfolio of image processing hardware and software. Basler works with customers to solve their vision application problems and develops customized products and solutions. Founded in 1988, the Basler Group employs around 900 people at its headquarters in Ahrensburg, Germany and at other sales and development locations in Europe, Asia and North America. 

Basler AG, Hardy Mehl (CFO/COO), An der Strusbek 60 – 62, 22926 Ahrensburg, Phone +49 (0)4102-463101, ir/baslerweb.com, www.baslerweb.com, ISIN DE 0005102008