Issuer: XTPL S.A.
/ Key word(s): Half Year Results/Interim Report
Press Release Wroclaw, September 20, 2024
XTPL with PLN 5.6 million of commercial sales in H1 2024
XTPL (WSE:XTP) generated total revenue of PLN 6.1 million in the first half of 2024, including PLN 5.6 million from the sale of products and services, compared to PLN 5.5 million in the same period last year. Once again, the majority of XTPL's results came from the sale of Delta Printing System - the company delivered six devices to international customers in this period. Industrial projects, which made significant progress in Q2 2024, are key to achieving XTPL's long-term growth vision. The first order for the industrial module was placed by a new customer, a leading Chinese machine manufacturer for the FPD display industry providing services to, among others, a Shenzhen Stock Exchange-listed entity with revenues of several tens of billions of US dollars. The second industrial module was again delivered to HB Technology from South Korea, further strengthening the ongoing collaboration and intensifying the testing phase of the Company's UPD technology. XTPL continues to implement the 2023-2026 Strategy, which supports the achievement of the target of PLN 100 million commercial sales by the end of 2026. "With the delivery of six more DPS devices to customers in the first half of the year, we are approaching total sales of nearly 30 such demonstrators of our technology, with customers in more than 20 countries worldwide. Securing the IP of our proprietary technology and commercialising it through initial products was our priority until 2023, confirming its market applicability. Currently, as part of our ongoing Strategy 2023-2026, it is crucial to industrialise our technology by achieving first industrial implementations with major global players in advanced electronics manufacturing. A new customer from China, with whom we have moved in a very short period of time from the initial evaluation, through the ordering of the industrial module, its delivery and installation, means that four prototype industrial devices with built-in XTPL modules are now operating globally" says Filip Granek, CEO of XTPL. "Our technology is being intensively tested in these devices, and we expect that the first full implementation will not only lead to a significant increase in deliveries of further modules but also accelerate other open processes, allowing us to achieve the 100 million PLN commercial sales target by the end of 2026, and set new ambitious goals for the future" Filip Granek adds. In H1 2024, XTPL generated PLN 6.1 million in total revenue, including PLN 5.6 million in revenue from the sale of products and services, compared to PLN 6.9 million and PLN 5.5 million respectively in the same period last year. The remaining value is made up of grants, where the Company is currently implementing one international project in a consortium under the Horizon Europe program and preparing to launch another. EBITDA in H1 2024 amounted to PLN -8.6 million, reflecting the Company's ongoing investment process related to the implementation of the Strategy and the investment plan aimed at scaling up the XTPL's business. At end of June 2024, the cash position was PLN 14.0 million. The implementation of the 2023-2026 Strategy has resulted in significant benefits for the company XTPL's production capabilities have been significantly expanded across all business lines, halving the time required to build DPS devices and enabling faster delivery of industrial modules to customers. A team has been established to manage current and future products, coordinating the entire cycle from initial concept to continuous development. The NPD (New Product Development) methodology has been introduced for internal cross-team work, and a Demo-Center in Boston, USA, is nearing completion, along with a laboratory for demonstrating and testing XTPL's technology. Intensified business development activities represent significant changes in the Company's positioning in the industry space and active participation in major international conferences and trade fairs, creating more sales opportunities. The current increased staffing structure reflects the target level for achieving the sales and operational goals set in the Strategy, and R&D work on new products and functionalities for the Company's existing product base is progressing according to the internal schedule. "The investment process aimed at scaling XTPL's business is progressing as planned and will enable us to increase sales 10-fold to PLN 100 million in commercial sales within the Strategy horizon. It is temporarily affecting our results, also due to the Company's increasing inventory levels to PLN 4.6 million at the end of June this year, but this is largely to secure components for the production and delivery of DPS devices to customers by the end of the year and is a direct investment in future sales that will benefit our cash flow. At the same time, we see that some DPS orders may shift to 2025 due to prolonged grant processes for academic and scientific customers and additional formalities from international industrial customers. Next year, we expect positive contributions from the facility in Boston, USA, with our Demo-Center planned for launch in Q4 this year. The signals we are receiving from that market are very good, and physical presence will allow us to be closer to customers, shortening the time between initial contact and the decision to order XTPL products" says Jacek Olszanski, CFO of XTPL. "The consistently implemented Strategy prepares us to handle future increased sales volumes and is funded by cash raised in 2023 and current operational inflows. The necessary funds for its continued implementation through 2026 will firstly be sourced from other forms of financing available to the Company and, where possible, from debt financing. Our priority remains the long-term building of XTPL's brand strength worldwide, and realization of Strategy is the route to achieving this. We believe in this development path, and based on the financial goals outlined in the Strategy, we adopted an incentive program for key personnel in June this year" Jacek Olszanski adds. XTPL's business model is based on three complementary business lines. These are printing modules for industrial implementation on the production lines of global manufacturers of electronics, the Delta Printing System (DPS) prototyping devices, and High Performance Materials (HPM, nanoinks). The Company has nine projects aimed at industrial implementation of its technology, which are at least in the second stage of that process. Most advanced are four projects covering areas the Company considers strategic: semiconductors and displays. The total potential of those nine industrial projects, assuming they are positively validated, is estimated by the Company at around PLN 400 million in average yearly revenues. The Company's end customers are global entities responsible for the production of next generation electronics, including a Chinese manufacturer of machines for the sector of modern displays, a leading semiconductor manufacturer from Taiwan, one of the world's largest producers of FPDs (Flat Panel Displays) from South Korea and a top manufacturer of industrial machines from the United States, listed on the Nasdaq 100 index.
XTPL S.A. is a deep-tech company providing ground-breaking precision printing solutions for the global microelectronics market. The company develops and commercializes products and solutions relying on its globally innovative Ultra-Precise Dispensing (UPD) platform technology protected by international patent applications. The technology enables ultra-precise deposition of conductive features with a resolution from 1 µm to over 50 µm. In the XTPL solution, the ultra-high resolution features are coupled with conductive materials characterized by a very high concentration of metallic nanoparticles and high viscosity. This combination makes the solution unique on a global scale. The innovative additive method designed by the company can be used in the fast-growing industry of printed electronics, particularly in such areas as semiconductors, displays, biosensors, advanced integrated circuits and security printing. Application areas of the XTPL printing technology can include electronic connections in advanced integrated circuits, 3D printed electronics, hybrid flexible electronics and the IoT. XTPL's goal is to license its technological solutions created for industrial implementation in dedicated application fields. The company may also achieve this goal by sales through distributors or strategic partnerships - in this way the cooperation can be geared to the needs of the future counterparty. Since 2019, XTPL S.A. has been listed on the main market of the Warsaw Stock Exchange, and since 2020 on the Open Market in Frankfurt. More information: www.xtpl.com
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