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SLM Solutions Group AG: Management board and supervisory board resolve on increase of the company's share capital by c. 5%

Luebeck, 12 July 2021 - Today, the management board of SLM Solutions Group AG (ISIN DE000A111338, the "Company") resolved, with the approval of the supervisory board, to increase the share capital of the Company by approximately 5%, from currently EUR 19,778,953.00 by EUR 988,947.00 to EUR 20,767,900.00 against cash contributions, making partial use of the Authorized Capital 2021.

In the course of the capital measure, approximately 988,947 new shares will be offered to qualified institutional investors by way of a private placement. The shareholders' statutory subscription right is excluded in accordance with Section 203 AktG in conjunction with Section 186 (3) sentence 4 AktG. The new shares are expected to be included in the existing listing of the shares of the Company at the Frankfurt Stock Exchange on or around 16 July 2021.

Half of the proceeds from the issuance of the new shares are intended to be used to fund the ongoing business operations and the remainder will be used to continue the investments in strategically important areas such as the NXG XII 600 as well as the expansion of the international sales and service network (i.e. US West Coast facility).

The share placement will be launched with immediate effect and the offering price will be determined on the basis of an accelerated bookbuilding. In the context of the contemplated capital increase, the Company has agreed to a lock-up period of 180 days subject to customary market exceptions and, as already announced, the possible issuance of further securities in accordance with the terms and conditions of the convertible bonds issued by the Company in 2020 and 2021.

Update on key business activity in Q2/H1 2021

SLM Solutions Group AG experienced very good business activity in H1 2021. The easing of COVID-19 related meeting, travel and other restrictions due to increasing vaccination levels globally have improved overall operating conditions considerably.

Customers and Operations

Recently, SLM Solutions signed a MoU regarding the delivery of the NXG XII 600, the first one with a company in the US aerospace industry. The first system delivery is scheduled for Q2 2022. SLM Solutions is in MoU negotiations with two other customers in the US aerospace industry with an aim to conclude these in Q3 2021, highlighting the significant demand for large and fast, multi-laser powder-bed-fusion systems in the aerospace industry.

Furthermore, SLM Solutions secured an additional firm NXG XII 600 order from an automotive customer and expects to receive additional orders from the automotive industry during Q3 2021.

Only 7 months after its launch, SLM Solutions' NXG XII 600 is well underway to become the laser powder bed fusion system of choice for key players in the aerospace, automotive and energy sectors.

Underscoring the importance and large business opportunity with a focus on the space industry, SLM Solutions previously announced it would seek to establish a presence on the US West Coast to be able to better serve existing and evolving new clients. SLM Solutions has secured a location and will start recruitment to establish a Center of Excellence for nickel based super alloys on the West Coast. The facility is expected to be operational by latest Q4 2021.

Technology

In June, SLM Solutions officially launched its Free Float software product, allowing support free printing of parts across the entire SLM Solutions portfolio, including the NXG XII 600. By removing support structures, customers are able to save time and money due to lower powder usage and a decrease in post-processing activity.

Also in June, SLM Solutions was granted patent protection for its proprietary industry leading multi-laser overlap technology. With >75% of laser powder bed fusion systems expected to be multi-laser by 2025 SLM, Solutions' broad and deep IP portfolio covers all relevant areas of the powder-bed-fusion process underscoring its technology leadership position.

Financials

SLM Solutions completed a successful first half 2021 being on track for its annual targets. Order intake for the first half was EUR 25m representing significant year-over-year growth (1H 2020: EUR 13.7m). Meanwhile, revenue for first half 2021 will be in line with H1 2020 (EUR 31.2m) with most of the revenue growth expected in the second half.

SLM will report Q2/H1 2021 financials on 12 August 2021.

About the company:

Based in Luebeck, Germany, SLM Solutions Group AG is a leading global supplier of metal-based additive manufacturing technology. The company's shares are traded on the Prime Standard of the Frankfurt Stock Exchange. The company develops and produces 3D printing machines and integrated system solutions in the field of the Selective Laser Melting. SLM Solutions currently employs more than 400 people in Germany, France, Italy, the USA, Singapore, Russia, India and China.

Contact:

Dirk Ackermann
SLM Solutions Group AG
E-Mail:


Important Notice

This publication may not be published or distributed or transmitted, directly or indirectly, in the United States of America (including its territories and possessions), Australia, Canada, Japan or any other jurisdiction where such an announcement would be unlawful. The distribution of this announcement may be restricted by law in certain jurisdictions and persons who are in possession of this document or other information referred to herein should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This publication does not constitute an offer or a solicitation to submit an offer to purchase, any securities of the Company or any its subsidiaries in the United States of America, Germany or any other jurisdiction. Neither this announcement nor its content shall form the basis of an offer in any jurisdiction or may be deemed as binding in connection with such an offer. The offered shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States of America without registration or an exemption from registration under the Securities Act.

In the United Kingdom, this publication is being directed only at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or (ii) persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, partnerships, etc.) (all such persons together being referred to as "Relevant Persons"). This publication is directed and distributed only to Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this publication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

In the member states of the European Economic Area, the placement of securities described in this announcement is directed exclusively to persons who are qualified investors in the meaning of the Regulation (EU) 2017/1129 of the European Parliament and the Council of 14 June 2017 (Prospectus Regulation).

No action has been taken that would permit an offer or a purchase of the securities or distribution of this publication in any jurisdiction where such action would be unlawful. Persons who are in possession of this announcement are required to inform themselves about and observe any such restrictions.

This announcement does not constitute a recommendation concerning the placement. Investors should consult a professional advisor as to the suitability of the placement for the person concerned.