Schmid Group N.v. · NASDAQ:SHMD
Schmid — SPAC Merger (July 2023)
23 slides from Schmid's SPAC merger presentation, Jul 14, 2023
Slide 1: Investor Presentation July 2023
Investor Presentation July 2023 1
Slide 2: Disclaimer
DISCLAIMER 2 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION. This presentation (together with any oral statem
Slide 3: Disclaimer
DISCLAIMER 3 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION. Trademarks Pegasus and SCHMID Group own or have
Slide 4: SCHMID at a Glance
1864 Founded in Germany 5 th Generation Family-Owned & Managed ~800 Employees ~150 Scientists & Engineers 2 Production Facilities in Germany & China 31% 2023E EBITDA Margin2 32,000 Sq. Ft. Lab & Prototyping Facility 5 Global Sales & Service Centers 3 Joint Venture Facilites 37% 2022A-2023E Revenue G
Slide 5: SCHMID & Pegasus: Joint Forces for Success
SCHMID & PEGASUS: JOINT FORCES FOR SUCCESS − CEO & Chairman SCHMID Group joined 1998 − CEO of SCHMID Group since 2000 − Board positions at Schweizer Electronic AG, a stock listed company − China trade award and the first German Chairman of a stock-listed company in Taiwan Dipl. Wirtsch-Ing. (FH) Hel
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS Manufacturing higher spec devices, cost efficiently in a more environmentally friendly manner while shortening global supply chains Public Listing SCHMID Solutions Well-positioned Strong Financials Compelling Valuation New ET (Embedded Trace) process and production lines delive
Slide 7: Market Growth: Driven by Global Megatrends
Connectivity & IoT - Increased data volumes need to be transmitted, stored and processed - Explosive growth of connected devices and continued miniaturization Carbon Neutrality - Energy & water consumption of manufacturing processes and eco footprint of end products of increasing importance - Green
Slide 8: Illustrative EV End Market Applications
Flexible PV for Car Roofs (Solar Cell & Thin Film) Radar Systems for Autonomous Driving (High Frequency Applications) Interior Design (Metal Etching) PV for Charging Situation (Solar Cell & Module) Display (Anti-Glare) Communication 5G (Packaging + HDI) EV-Battery (Nano Silicon Anode Material) Proce
Slide 9: Go-to-Market
GO-TO-MARKET Long-standing, strong customer relationships, including partnerships with customers’ customers, driving demand pull Proven track record in delivering disruptive technology solutions for OEMs, creating competitive moats Technology Center Modular Approach High Touch Service Responsible Pa
Slide 10: Solving Customer Requirements
− Narrower line widths, increased numbers of I/Os, higher aspect ratios, new materials all at acceptable costs and yields − Improved supply security and shorter lead times through near shoring − Achievement of CO2 reduction goals and greener manufacturing as demanded by end customers SOLVING CUSTOME
Slide 11: New ET Process vs Traditional mSAP and SAP Manufacturing
Conventional ET Board Traditional mSAP and SAP Manufacturing Processes Explained: Traces are built on an insulator and are connected through conventical holes & Blind Vias (BV) that are laser drilled from layer to layer The next layer is then laminated by heat and pressure to the sensitive copper tr
Slide 12: Benefits of Embedded Trace
Coreless & Core build up. Single & double-sided build up. Optimized glass substrates Optimized process for next generation of high-performance materials Full 3D build up capabilities for substrates Replacing round holes with 3D connections, increasing amounts of copper for better thermal management
Slide 13: Eco Benefits of Embedded Trace
ECO BENEFITS OF EMBEDDED TRACE ~30%1 Reduction in CO2 emissions ~70%1 Reduction in water consumption ~40%1 Reduction in chemicals consumed ~30%1 Reduction in energy required Urban Fabs can be located in Europe, the US and SE Asia by meeting environmental standards Greener PCB & Substrates help deliv
Slide 14: Typical Fab Schematic
TYPICAL FAB SCHEMATIC Drives massive penetration opportunity for SCHMID: From 30%1 of the equipment capex spending in traditional fab to over 90%1 in an ET fab ET Replacing Laser Processing Wetprocess Infinity C+ Line Infinity V+ Line Infinity P+ Line Vacuum PlasmaLine Automation InfinityLine A+ ALa
Slide 15: Robust Capital Equipment Market Outlook
Focus mSAP/SAP Subtractive ET ROBUST CAPITAL EQUIPMENT MARKET OUTLOOK 1 5 High-End PCB Equipment Serviceable Addressable Market (€m)1 2019A-2022A CAGR 2022A-2026E CAGR 103% 159% 29% 21% 18% 10% ET: Subtractive mSAP/SAP 24% 38% Total 2019A 2020A 2021A 2022A 2023E 2024E 2025E 2026E €172 €198 €282 €327
Slide 16: Financials Underpinned by Profitable Growth
Revenue (€m)1 FINANCIALS UNDERPINNED BY PROFITABLE GROWTH 1 6 EBITDA (€m)1 €26 €43 1) Financial information presented here reflects German GAAP figures. See “Preliminary Financial Information” in Disclaimer for additional information. Estimates and assumptions are based on currently available inform
Slide 17: Strong Order Book Drives Financial Visibility
− Substantial order book supports sustainable growth momentum for 2023 and beyond − Approximately 60% Equipment Revenue covered by order backlog at year-end 2022 − Growing share of R&D services already on order book at year-end for 2023 and 2024 − Recurring customer service on larger installed base
Slide 18: Sustainable Cash Generation Funds Growth
Strong Balance Sheet - Ample liquidity at year-end 2023E, comprising of approximately €40 million in cash and cash-like equivalents, to support sustainable near-term growth - Robust 2023E year-end net debt of approximately €13 million, reflects strong balance sheet with investment-grade ratios Strat
Slide 19: Long-Term Investment Strategy
− Strategic acquisitions aligned with our technology focus on software for advanced connectivity and high-end automation − Increasing ET penetration displacing mSAP and SAP − Service revenue expected to increase proportionally with growing installed base − Organic growth driven by focused product po
Slide 20: Transaction Summary
TRANSACTION SUMMARY Transaction values SCHMID at a pre-money enterprise value of USD $640 million and pro forma enterprise value of USD $739 million, implying 15x pro forma enterprise value / 2023E EBITDA Pro Forma Valuation (USD $m) Sources (USD $m) Uses (USD $m) Rollover SCHMID Equity5 $613 Rollov
Slide 21: SCHMID Group – Selected Comparables
15.3x 28.0x 24.5x 20.4x 18.9x 16.2x 18.0x 15.4x 14.9x 14.9x 31% 44.0% 34.9% 32.1% 30.8% 30.6% 30.2% 28.1% 24.5% 21.0% 37% 32.5% 25.3% 12.9% 8.0% 9.9% 2.5% 1.6% 0.7% (11.8%) SCHMID is favorably positioned with its premium technical product and blue-chip technology customer relationships that are driv
Slide 22: Thank you for your attention
Thank you for your attention Please feel free to contact us if you have any questions. www.schmid-group.com
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Gebr. Schmid GmbH (SCHMID Group) — SPAC Merger (July 2023) on 6ix