Company Announcement no. 28-24
Herlev, Denmark - November 18, 2024 - Shape Robotics A/S, a leader in educational robotics, hereby announces a strategic distribution agreement with Ingram Micro Distribution S.R.L., strengthening our financial flexibility and reducing operational risks in the Romanian market. This partnership complements our existing collaboration with Network One Distribution S.R.L. (NOD), and thus creates a dual-distributor model ensuring business continuity and providing Shape Robotics with additional financial flexibility to execute on current contracts, with a potential north of EUR 120 million under the Romanian National Recovery and Resilience Program, while maintaining capacity for future growth.
Mark Abraham, CEO of Shape Robotics, said: "Engaging multiple distributors in Romania enhances our operations by offering financial flexibility and mitigating operational risks as we pursue our growth ambitions. This approach enables us to execute large-scale projects more efficiently while maintaining a healthy cash position. We are very satisfied with our contract with NOD, which remains unaffected by our partnership with Ingram Micro. Furthermore, we fully retain the existing backlog and commitments with NOD."
The agreement provides specific and significant measures for optimization and de-risking Shape Robotics' business, including:
Working capital optimization
-
Reduction in working capital requirements by approximately EUR 12 million through shared inventory management.
-
Payment terms aligned with installation milestones, improving cash conversion cycle by 20-25 days.
-
Decreased warehouse financing costs by utilizing Ingram Micro's existing facilities.
Risk mitigation
-
Dual-distributor model provides business continuity assurance.
-
Geographic risk diversification through complementary distribution networks.
-
Reduced single-point-of-failure risk in our supply chain.
-
Enhanced ability to manage potential supply chain disruptions.
Financial security
-
Additional bank guarantee capacity through Ingram Micro's banking relationships.
-
Improved insurance coverage for in-transit inventory.
-
Shared responsibility for performance guarantees required by government contracts.
Operational Impact
-
Combined warehouse capacity increased to 15,000 square meters.
-
Inventory holding costs reduced by approximately 20%.
-
Improved matching of cash inflows with supplier payment obligations.
-
Enhanced ability to manage seasonal fluctuations in demand.
While this partnership strengthens our financial position and risk profile, it does not change Shape Robotics' financial guidance for 2024, as it does not result in new, near-term project orders.
About Shape Robotics
Shape Robotics is a Danish EdTech leader, specializing in robotics and educational technology for STEAM learning. Through products like Fable robots and SmartLab solutions, Shape Robotics empowers students to explore hands-on learning, fostering creativity, collaboration, and critical thinking in classrooms worldwide.
About Ingram Micro Distribution S.R.L.
Ingram Micro Distribution S.R.L. is part of Ingram Micro, a global leader in technology and supply chain services. The company helps businesses realize the promise of technology, working with thousands of partners worldwide to distribute the latest technological solutions.
Additional information
Mark Abraham, CEO
Tlf.: +45 31 65 64 50
[email protected]
CVR-nr. 38322656
www.shaperobotics.com
Shape Robotics A/S