Materialise Nv · EURONEXT:MTLS
Materialise Nv — Q3 2014 Earnings Presentation
16 slides from Materialise Nv's earnings presentation, Nov 12, 2014
Slide 1: Q3 2014 Financial Results Conference Call
Q3 2014 Financial Results Conference Call November 12, 2104
Slide 2: Safe Harbor Summary
Safe Harbor Summary This presentation contains forward-looking statements regarding, among other things, the plans, objectives, expectations, strategies and prospects of the Company, both financial and business. Such statements are subject to known and unknown uncertainties and risks. When used in t
Slide 3: Agenda
Agenda Fried Vancraen • Q3 2014 Highlights Founder & CEO • Investing Our IPO Proceeds • Q3 Financial Results and Peter Leys 2014 Guidance Executive Chairman • Q3 2014 Accomplishments, Q4 2014 Priorities • Q&A Frederic Merckx CFO 3
Slide 4: Q3 2014 Highlights
Q3 2014 Highlights • Revenue increased 17% to 19,833 kEUR from prior year. • 3D Printing software sales increased 29% • Total software sales were 31% of total revenue • Adjusted EBITDA, excluding non-cash based compensation expense, was 2,055 kEUR, or 10% of total revenue. • R&D increased by 1,145 k
Slide 5: Investing Our IPO Proceeds
Investing Our IPO Proceeds Making Build versus Buy Decisions to Accelerate Growth Build Buy • 3D Printing Software and Medical – • Acquired OrthoView for £8.47M* investing in developing new products • Adds new distribution channels for and expanding sales & marketing reach surgical pre-planning soft
Slide 6: Consolidated Revenue
Consolidated Revenue YTD 2014 Revenue 3D Printing Software Consolidated Revenue 22% Industrial (€ in thousands) Production 41% €57,764 €49,217 Medical €19,833 37% €16,973 YTD 2013 Revenue Q3 2013 Q3 2014 YTD 2013 YTD 2014 3D Printing Software 20% Industrial 31% of Q3 2014 revenue from software sal
Slide 7: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA YTD 2014 Adj. EBITDA(1) Medical Consolidated Adjusted EBITDA Margin 28% (€ in thousands) 14.5% 10.4% 10.8% 8.4% 3D Printing €5,295 €4,825 Software Industrial 58% Production €2,460 14% €2,055 H1 YTD 2013 2013 Adj. Adj. EBITDA(1) (1) EBITDA Q3 2013 Q3 2014 YTD 2013 YTD 201
Slide 8: 3D Printing Software Segment
3D Printing Software Segment Revenue EBITDA Margin (€ in thousands) 39.1% 34.2% 39.2% 38.8% €12,671 €9,835 €4,921 €3,858 €4,438 €3,441 €1,518 €1,345 Q3 2013 Q3 2014 YTD 2013 YTD 2014 Q3 2013 Q3 2014 YTD 2013 YTD 2014 Revenue from new licenses for Q3 2014 increased by 32% from the prior year. Q3
Slide 9: Medical Segment
Medical Segment Revenue EBITDA Margin (€ in thousands) 17.8% 9.5% 18.8% 11.4% €20,522 €21,221 €3,853 €2,416 €6,833 €7,090 €1,213 €677 Q3 2013 Q3 2014 YTD 2013 YTD 2014 Q3 2013 Q3 2014 YTD 2013 YTD 2014 Q3 2014 medical software revenue decreased 2% from the prior year as a result of the acceleratin
Slide 10: Industrial Production Segment
Industrial Production Segment Revenue EBITDA Margin (€ in thousands) 8.9% 9.2% 3.9% 5.0% €23,659 €18,850 €1,182 €753 €733 €600 €8,190 €6,708 Q3 2013 Q3 2014 YTD 2013 YTD 2014 Q3 2013 Q3 2014 YTD 2013 YTD 2014 37% growth in sales of end parts for Q3 2014 over the prior year. Number of printers in
Slide 11: Income Statement Highlights
Income Statement Highlights (in thousands of euros, except where indicated) Q3 YTD 2014 2013 2014 2013 Revenue 19,833 16,973 57,764 49,217 Cost of sales (7,679) (6,282) (22,853) (18,697) Gross profit 12,154 10,691 34,911 30,520 Research & Development Expenses (3,672) (2,527) (10,414) (7,675) Sales &
Slide 12: Other Financial Highlights
Other Financial Highlights (in thousands of euros) 09/30/2014 12/31/2013 Cash & equivalents 75,044 12,598 Receivables 14,087 12,382 Inventories 3,471 3,328 Payables 7,471 6,837 Total borrowings 17,243 16,316 Total equity 85,284 17,735 Total liabilities and equity 127,682 55,688 (in thousands of euro
Slide 13: 2014 Guidance
2014 Guidance Consolidated 79M to 81M euros Revenue Consolidated 5.0M to 6.0M euros Adj. EBITDA(1) Note: These objectives do not represent budget estimates or projections of any type and have not been prepared by management in the manner budget estimates or projections are prepared. The Company’s op
Slide 14: 2014 Operational Review
2014 Operational Review Q3 Operational Achievements Q4 Operational Priorities Software Software Entered new OEM agreements; Further strengthen relationships with strengthened existing OEM OEMs relationships Form OEM partnerships to develop Opened new office in China build processors Medical
Slide 15: Q&A
Visionary company and leadership that has driven advancement of the 3D printing industry Commitment to expanding 3D printing technology through constant ongoing Research & Q&A Development At the forefront of 3D printing growth with a compelling and unique business and financial model 15
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For the quarter For the nine months ended September 30 ended September 30 (in thousands of euros) 2014 2013 2014 2013 Net profit/(loss) 2,559 1,380 2,418 2,188 Income taxes 140 117 427 274 Financial expense 412 221 821 608 Financial income (2,395) (40) (2,462) (112) De