Materialise Nv · EURONEXT:MTLS
Materialise Nv — Q2 2019 Earnings Presentation
15 slides from Materialise Nv's earnings presentation, Aug 6, 2019
Slide 1: 2Q 2019 Financial Results Conference Call
2Q 2019 Financial Results Conference Call August 6, 2019 www.materialise.com NASDAQ: MTLS
Slide 2: Safe Harbor Summary
Safe Harbor Summary This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections,
Slide 3: Agenda
Agenda Fried Vancraen Founder & CEO Q2 2019 and Other Highlights Materialise Medical Initiatives Peter Leys Q2 2019 Financial Results Executive Chairman Fiscal 2019 Financial Guidance Update Q&A Johan Albrecht CFO 3
Slide 4: Q2 2019 and Other Highlights
Q2 2019 and Other Highlights Total revenue increased 7% from Q2 2018 to 48,404 kEUR Adjusted EBITDA of 5,059 kEUR or an Adjusted EBITDA margin of 10.5% Net result of (297) kEUR or (0.01) EUR per diluted share Acquisition of controlling stake in Engimplan Holding Ltda. Brazil-based manufacturer of or
Slide 5: Materialise Medical Initiatives
Materialise Medical Initiatives Investment in Engimplan Embodies our vision to invest in meaningful medical applications of 3D printing, particularly CMF and orthopedic verticals Engimplan on the verge of introducing 3D metal printing into its production process Materialise’s solutions and expertise
Slide 6: Materialise Medical Initiatives (cont'd)
Materialise Medical Initiatives (cont’d) Mitral Valve Planner Illustrates how strengths of Mimics Innovation Suite are being leveraged First release of Mimics Enlight supports planning of complex TMVR procedures FDA clearance received; currently being commercialized Other planning tools from Mimics
Slide 7: Q2 2019 - Consolidated Revenue
Q2 2019 - Consolidated Revenue Consolidated Revenue € 54,000 € 48,404 Q2 2019 Revenue by Segment € 49,000 € 45,076 € 44,000 19% € 39,000 Software € 34,000 51% Medical € 29,000 30% Manufacturing € 24,000 Q2 2018 Q2 2019 Solid revenue increase in Medical Third consecutive quarter of revenue growth in
Slide 8: Q2 2019 - Consolidated Adjusted EBITDA
Q2 2019 - Consolidated Adjusted EBITDA Consolidated Adjusted EBITDA € 6,000 11.6% € 5,500 10.5% € 5,216 € 5,059 € 5,000 € 4,500 € 4,000 € 3,500 € 3,000 Q2 2018 Q2 2019 Q2 2019 consolidated adjusted EBITDA decreased 3% Q2 2019 consolidated adjusted EBITDA margin of 10.5% Lower Software revenue weighe
Slide 9: Software Segment
Software Segment Revenue EBITDA € 10,350 € 3,500 31.3% € 9,131 € 9,320 € 2,859 € 9,350 € 3,000 € 2,500 22.1% € 8,350 € 2,055 € 2,000 € 7,350 € 1,500 € 6,350 € 1,000 € 5,350 € 500 € 4,350 €0 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Revenue increased 2% Q2 2019 recurrent revenue up 23% Q2 2019 non-recurrent re
Slide 10: Medical Segment
Medical Segment Revenue EBITDA € 14,546 € 14,800 18.8% € 3,000 € 2,738 € 13,600 17.1% € 12,400 € 2,400 € 2,124 € 12,400 € 1,800 € 11,200 € 1,200 € 10,000 € 8,800 € 600 € 7,600 €0 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2019 revenue from medical devices and services rose 13% Q2 2019 revenue from medical s
Slide 11: Manufacturing Segment
Manufacturing Segment Revenue EBITDA 11.5% € 28,000 € 3,000 € 2,835 9.7% € 24,550 € 2,500 € 25,000 € 2,264 € 23,387 € 2,000 € 22,000 € 1,500 € 19,000 € 1,000 € 16,000 € 500 € 13,000 €0 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2019 revenue up 5% EBITDA increased 25% to 2,835 kEUR, resulting in an EBITDA ma
Slide 12: Income Statement Highlights
Income Statement Highlights (in thousands of euros, except where indicated) Q2 2019 2018 Revenue 48,404 45,076 Cost of sales (21,887) (20,288) Gross profit 26,527 24,788 Research & development expenses (6,100) (5,831) Sales & marketing expenses (13,173) (11,842) General & administrative expenses (8,
Slide 13: Other Financial Highlights
Other Financial Highlights (in thousands of euros) 06/30/2019 12/31/2018 Cash and equivalents 108,865 115,506 Receivables 40,073 36,891 Inventories 10,031 9,986 Payables 20,260 20,980 Total deferred income 30,058 27,782 Total borrowings 107,698 106,037 Total equity 135,781 135,989 Total liabilities
Slide 14: Fiscal 2019 Financial Guidance Update
Fiscal 2019 Financial Guidance Update On an organic basis, expect to be comfortably within Revenue and Deferred Revenue ranges for fiscal 2019 and at bottom of Adjusted EBITDA range Investment in Engimplan immediately accretive to revenues and Adjusted EBITDA Engimplan’s expected financial contribut
Slide 15: Appendix: Adjusted EBITDA Reconciliation
APPENDIX Adjusted EBITDA Reconciliation For the quarter ended June 30 (in thousands of euros) 2019 2018 Net profit/(loss) (297) 369 Income taxes 61 42 Financial expenses 313 404 Financial income (123) (29) Share of loss in a joint venture 82 141 Depreciation & amortization 4,649 4,009 EBITDA 4,685 4