Slide 1: Q3 2023 Financial Results Conference Call
Q3 2023 Financial Results Conference Call October 26, 2023 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 • Q3 2023 Highlights • Q3 2023 Financial Results • Industry and MTLS Leadership Update Peter Leys Executive Chairman • 2023 Financial Guidance • Q&A Koen Berges CFO 3
Slide 4: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights • Revenue increased 3.2% to 60,130 kEUR from last year’s revenue of 58,288 kEUR • Adjusted EBITDA increased 54.9% to 7,857 kEUR, representing 13.1% of revenue • Net profit increased 184% to 4,013 kEUR, or 7 EUR-ct. per share, from 1,413 kEUR in Q3 2022 Continued strong p
Slide 5: Consolidated Revenue
Q3 2023 Consolidated Revenue Q3 2023 Revenue by Segment 70,000 +3.2% 60,130 Thousands 58,288 18% Software 60,000 50,000 Medical 42% 40,000 Manufacturing 30,000 20,000 40% 10,000 0 Q3 2022 Q3 2023 • Revenue increased 3.2% compared to Q3 2022 to 60.1 mEUR. • Impact from less favorable market condition
Slide 6: Consolidated Adjusted EBITDA
Q3 2023 Consolidated Adjusted EBITDA 13.1% €9,000 +54.9 % Thousands €7,857 €8,000 €7,000 8.7% €6,000 €5,072 €5,000 €4,000 €3,000 €2,000 €1,000 €0 Q3 2022 Q3 2023 • Q3 2023 Adjusted EBITDA increased 54.9% to 7,857 kEUR compared to Q3 2022 due to leveraging scaling effects and cost control while conti
Slide 7: Software Segment
Q3 2023 Software Segment 16.5% €2,000 €1,781 Thousands €15,000 €1,600 Thousands €10,863 €10,811 €10,000 €1,200 €800 1.9% €5,000 €400 €202 €0 €0 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Revenue Adjusted EBITDA • Q3 2023 revenue stable at 10,811 kEUR compared to Q3 2022 • Recurring revenue, including CO-AM sub
Slide 8: Medical Segment
Q3 2023 Medical Segment 29.4% €30,000 3 .4 % €8,000 €7,143 +1 Thousands Thousands €24,263 €25,000 22.3% €21,391 €6,000 €20,000 €4,765 €15,000 €4,000 €10,000 €2,000 €5,000 €0 €0 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Revenue Adjusted EBITDA • Q3 2023 revenue increased 13.4% to 24,263 kEUR • Revenue from med
Slide 9: Manufacturing Segment
Q3 2023 Manufacturing Segment -3.8% €30,000 Thousands €26,033 €25,056 €4,000 Thousands €25,000 9.7% €20,000 €3,000 €2,530 €15,000 4.3% €2,000 €10,000 €1,074 €1,000 €5,000 €0 €0 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Revenue Adjusted EBITDA • Q3 2023 revenue decreased by 3.8% compared to Q3 2022 mainly due
Slide 10: Income Statement Highlights
Income Statement Highlights (in thousands of euros, except where indicated) Q3 2023 Q3 2022 Revenue 60,130 58,288 Cost of sales (26,435) (26,245) Gross profit 33,696 32,042 Research & development expenses (9,476) (9,313) Sales & marketing expenses (13,960) (15,198) General & administrative expenses
Slide 11: Other Financial Highlights
Other Financial Highlights (in thousands of euros) 9/30/23 12/31/22 Cash and equivalents 133,953 140,867 Receivables 41,998 51,043 Inventories 16,764 16,081 Payables 23,072 24,476 Deferred income 46,473 50,998 Borrowings 66,222 80,980 Equity 236,631 228,928 Total balance sheet 393,991 411,262 (in th
Slide 12: Leadership Handover – as of Jan 1, 2024
Leadership Handover – as of Jan 1, 2024 Fried Vancraen Brigitte de Vet-Veithen Chairman of the Board CEO of Materialise 12 Peter Leys remains non-executive Board member
Slide 13: Leadership Handover – Brigitte de Vet-Veithen
Leadership Handover – as of Jan 1, 2024 Brigitte de Vet-Veithen • 30+ years experience in technology and healthcare sector • Executive Vice President Materialise Medical since 2016 • Before Materialise: • CTO at various companies and CEO at Acertys • Business leader at Johnson & Johnson • Strategy c
Slide 14: Fiscal 2023 Financial Guidance Update
Fiscal 2023 Financial Guidance Update Maintaining earlier upward adjusted guidance on revenue and Adjusted EBITDA • Expect 2023 consolidated revenue within 255-260 mEUR range • Expect 2023 consolidated Adjusted EBITDA within 28-33 mEUR range 14
Slide 15: Appendix: Adjusted EBITDA Reconciliation
Appendix Adjusted EBITDA Reconciliation (in thousands of euros) Q3 2023 Q3 2022 Net profit/(loss) 4,013 1,413 Income taxes (363) 478 Financial expenses 1,554 2,110 Financial income (2,873) (4,283) Share of loss in a joint venture Depreciation & amortization 5,527 5,378 EBITDA 7,857 5,096 Share-based