UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 6-K

 

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of July 2023

 

Commission File Number: 001-36515

 

 

 

Materialise NV

 

 

 

Technologielaan 15

3001 Leuven

Belgium

(Address of principal executive office)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  x            Form 40-F  ¨

 

This Form 6-K is incorporated by reference into the registrant’s Registration Statement on Form F-3 (File No. 333-213649).

 

 

 

 

 

 

Second Quarter 2023 Financial Results

 

Except as otherwise required by the context, references to “Materialise,” “Company,” “we,” “us” and “our” are to Materialise NV and its subsidiaries.

 

Second Quarter 2023 Results

 

Total revenue for the second quarter of 2023 increased 11.6% to 64,810 kEUR from 58,070 kEUR for the second quarter of 2022.

 

Revenue from our Materialise Software segment increased 3.6% to 11,030 kEUR for the second quarter of 2023 from 10,642 kEUR for the same quarter last year.

 

Revenue from our Materialise Medical segment increased 19.6% to 24,945 kEUR for the second quarter of 2023 compared to 20,855 kEUR for the same period in 2022.

 

Revenue from our Materialise Manufacturing segment increased 8.5% to 28,835 kEUR for the second quarter of 2023 from 26,574 kEUR for the second quarter of 2022.

 

Gross profit was 37,047 kEUR for the second quarter of 2023 compared to 32,030 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 57.2% compared to 55.2% for the second quarter of 2022.

 

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses decreased in the aggregate by 1.3% to 33,176 kEUR for the second quarter of 2023 from 33,613 kEUR for the second quarter of 2022, with disciplined cost containment in S&M and G&A fully offsetting the increased costs of our continued R&D efforts.

 

Net other operating income, which includes the negative impact from the adverse arbitration award, was (4,468) kEUR compared to 498 kEUR for the second quarter of 2022.

 

Operating result amounted to (597) kEUR compared to (1,084) kEUR for the second quarter of 2022.

 

Net financial result was 635 kEUR compared to 2,580 kEUR for the second quarter of 2022.

 

The second quarter of 2023 contained income tax expenses of (532) kEUR, compared to (600) kEUR in the second quarter of 2022.

 

As a result of the above, net result for the second quarter of 2023 was (494) kEUR, compared to 896 kEUR for the same period in 2022. Total comprehensive income for the second quarter of 2023, which includes exchange differences on translation of foreign operations, was 140 kEUR compared to 771 kEUR for the corresponding 2022 period.

 

At June 30, 2023, after payment of the 5,189 kEUR arbitration award, we had cash and cash equivalents of 136,285 kEUR compared to 140,867 kEUR at December 31, 2022. Gross debt amounted to 72,412 kEUR, compared to 80,980 kEUR at December 31, 2022. As a result, our net cash position (cash and cash equivalents less gross debt) was 63,873 kEUR, an increase of 3,986 kEUR compared to December 31, 2022

 

Cash flow from operating activities for the second quarter of the year 2023 was 775 kEUR compared to 8,636 kEUR for the same period in 2022. Total capital expenditures for the second quarter of 2023 amounted to 2,119 kEUR.

 

 

 

 

Net shareholders’ equity at June 30, 2023 was 233,393 kEUR compared to 228,928 kEUR at December 31, 2022.

 

Adjusted EBITDA amounted to 4,755 kEUR for the second quarter of 2023 compared to 4,240 kEUR for the corresponding 2022 period. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the second quarter of 2023 was 7.3%, equal to the second quarter of 2022. Excluding the (5,189) kEUR negative impact resulting from the unexpected adverse resolution of an arbitration proceeding, our Adjusted EBITDA margin for the quarter would have been 15.3%.

 

Adjusted EBITDA from our Materialise Software segment increased to 1,973 kEUR from 821 kEUR while the segment Adjusted EBITDA margin (segment Adjusted EBITDA divided by segment revenue) was 17.9% compared to 7.7% for the corresponding prior-year period.

 

Adjusted EBITDA from our Materialise Medical segment amounted to 2,683 kEUR for the second quarter of 2023 compared to 4,474 kEUR while the segment Adjusted EBITDA margin was 10.8% compared to 21.5% for the second quarter of 2022. Adjusted EBITDA from our Materialise Medical segment for the second quarter of 2023 includes the (5,189) kEUR negative effect from an arbitration award granted against us in our previously disclosed indemnification dispute with Zimmer Biomet related to certain joint replacement devices. Excluding the (5,189) kEUR negative impact, the Adjusted EBITDA from our Materialise Medical segment for the quarter would have been 31.6%.

 

Adjusted EBITDA from our Materialise Manufacturing segment amounted to 2,708 kEUR compared to 1,581 kEUR for the same period last year, while the segment Adjusted EBITDA margin was 9.4% compared to 5.9% for the second quarter of 2022.

 

Non-IFRS Measures

 

Materialise uses EBITDA and Adjusted EBITDA as supplemental financial measures of its financial performance. EBITDA is calculated as net profit plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBITDA. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of long-term investment and financing decisions, rather than the performance of the company’s day-to-day operations. As compared to net profit, these measures are limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company’s business, or the charges associated with impairments. Management evaluates such items through other financial measures such as capital expenditures and cash flow provided by operating activities. The company believes that these measurements are useful to measure a company’s ability to grow or as a valuation measurement. The company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA should not be considered as alternatives to net profit or any other performance measure derived in accordance with IFRS. The company’s presentation of EBITDA and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.

 

Exchange Rate

 

This document contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.0866, the reference rate of the European Central Bank on June 30, 2023.

 

About Materialise

 

Materialise incorporates 30 years of 3D printing experience into a range of software solutions and 3D printing services, which form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in Belgium, with branches worldwide, Materialise combines one of the largest groups of software developers in the industry with one of the largest 3D printing facilities in the world.

 

 

 

 

Consolidated income statements (Unaudited)

 

   for the three months ended
June 30,
   for the six months ended
June 30,
 
In '000  2023   2023   2022   2023   2022 
   U.S.$             
Revenue   70,423    64,810    58,070    130,702    111,032 
Cost of Sales   (30,168)   (27,764)   (26,040)   (56,814)   (50,118)
Gross Profit   40,255    37,047    32,030    73,888    60,914 
Gross profit as % of revenue   57.2%   57.2%   55.2%   56.5%   54.9%
                          
Research and development expenses   (10,311)   (9,489)   (8,955)   (18,506)   (16,770)
Sales and marketing expenses   (15,385)   (14,159)   (14,954)   (28,459)   (28,469)
General and administrative expenses   (10,353)   (9,528)   (9,704)   (18,573)   (18,148)
Net other operating income (expenses)   (4,855)   (4,468)   498    (3,948)   1,436 
Operating (loss) profit   (649)   (597)   (1,084)   4,402    (1,036)
                          
Financial expenses   (728)   (670)   (1,320)   (2,045)   (2,561)
Financial income   1,419    1,305    3,901    2,114    5,517 
Share in loss of joint venture   -    -    -    -    - 
(Loss) profit before taxes   42    38    1,496    4,471    1,921 
                          
Income Taxes   (578)   (532)   (600)   (1,249)   (898)
Net (loss) profit for the period   (536)   (494)   896    3,221    1,023 
Net (loss) profit attributable to:   -                     
The owners of the parent   (530)   (488)   903    3,234    1,036 
Non-controlling interest   (7)   (6)   (7)   (13)   (13)
                          
Earning per share attributable to owners of the parent                         
Basic   (0.01)   (0.01)   0.02    0.05    0.02 
Diluted   (0.01)   (0.01)   0.02    0.05    0.02 
                          
Weighted average basic shares outstanding   59,067    59,067    59,064    59,067    59,064 
Weighted average diluted shares outstanding   59,067    59,067    59,095    59,070    59,100 

 

 

 

 

Consolidated statements of comprehensive income (Unaudited)

 

   for the three months ended
June 30,
   for the six months ended
June 30,
 
In 000€  2023   2023   2022   2023   2022 
   U.S.$             
Net profit (loss) for the period   (536)   (494)   896    3,221    1,023 
Other comprehensive income                         
Recycling                         
Exchange difference on translation of foreign operations   689    634    (125)   1,242    1,291 
Non-recycling                         
Fair value adjustments through OCI - Equity instruments   -    -    -    -    - 
Other comprehensive income (loss), net of taxes   689    634    (125)   1,242    1,291 
Total comprehensive income (loss) for the year, net of taxes   152    140    771    4,463    2,314 
Total comprehensive income (loss) attributable to:                         
The owners of the parent   157    144    778    4,473    2,327 
Non-controlling interests   (4)   (4)   (7)   (10)   (13)

 

 

 

 

Consolidated statement of financial position (Unaudited)

 

   As of
June 30,
   As of
December 31,
 
In 000€  2023   2022 
Assets          
Non-current assets          
Goodwill   44,345    44,155 
Intangible assets   35,780    37,875 
Property, plant & equipment   94,599    94,276 
Right-of-Use assets   8,277    8,420 
Investments in joint ventures   -    - 
Deferred tax assets   1,251    1,186 
Investments in convertible loans   3,618    3,494 
Investments in non-listed equity instruments   307    307 
Other non-current assets   4,997    5,136 
Total non-current assets   193,173    194,847 
Current assets          
Inventories   16,007    16,081 
Trade receivables   45,859    51,043 
Other current assets   8,935    8,424 
Cash and cash equivalents   136,285    140,867 
Total current assets   207,085    216,414 
Total assets   400,259    411,262 

 

 

 

 

   As of
June 30,
   As of
December 31,
 
In 000€  2023   2022 
Equity and liabilities          
Equity          
Share capital   4,487    4,487 
Share premium   233,895    233,895 
Retained earnings and other reserves   (4,951)   (9,427)
Equity attributable to the owners of the parent   233,431    228,955 
Non-controlling interest   (38)   (28)
Total equity   233,393    228,928 
Non-current liabilities          
Loans & borrowings   49,823    55,873 
Lease liabilities   5,123    5,147 
Deferred tax liabilities   3,947    4,312 
Deferred income   8,633    9,277 
Other non-current liabilities   1,006    1,611 
Total non-current liabilities   68,532    76,220 
Current liabilities          
Loans & borrowings   14,631    17,058 
Lease liabilities   2,835    2,902 
Trade payables   22,790    23,230 
Tax payables   2,129    1,246 
Deferred income   40,579    41,721 
Other current liabilities   15,370    19,957 
Total current liabilities   98,334    106,114 
Total equity and liabilities   400,259    411,262 

 

 

 

 

Consolidated statement of cash flows (Unaudited)

 

   for the six months ended
June 30,
 
In 000€  2023   2022 
Operating activities          
Net (loss) profit for the period   3,221    1,023 
Non-cash and operational adjustments          
Depreciation of property plant & equipment   7,364    7,630 
Amortization of intangible assets   3,334    3,186 
Impairment of goodwill and intangible assets   -    - 
Share-based payment expense   -    (97)
Loss (gain) on disposal of intangible assets and property, plant & equipment   (106)   31 
Movement in provisions   (591)   5 
Movement reserve for bad debt and slow moving inventory   272    136 
Financial income   (2,095)   (5,509)
Financial expense   2,055    2,564 
Impact of foreign currencies   (84)   (61)
(Deferred) income taxes   1,254    885 
Working capital adjustments   (3,336)   10,154 
Decrease (increase) in trade receivables and other receivables   4,269    1,450 
Decrease (increase) in inventories and contracts in progress   81    (2,839)
Increase (decrease) in deferred revenue   (1,772)   3,658 
Increase (decrease) in trade payables and other payables   (5,914)   7,884 
Income tax paid & Interest received   531    (201)
Net cash flow from operating activities   11,819    19,747 

 

 

 

 

   for the six months ended
June 30,
 
In 000€  2023   2022 
Investing activities          
Purchase of property, plant & equipment   (4,333)   (7,494)
Purchase of intangible assets   (1,056)   (2,553)
Proceeds from the sale of property, plant & equipment & intangible assets (net)   218    184 
Acquisition of subsidiary (net of cash)   -    (25,610)
Net cash flow used in investing activities   (5,172)   (35,473)
Financing activities          
Repayment of loans & borrowings   (8,617)   (9,018)
Repayment of leases   (1,744)   (1,668)
Capital increase   -    - 
Interest paid   (891)   (1,155)
Other financial income (expense)   (33)   604 
Net cash flow from (used in) financing activities   (11,285)   (11,236)
Net increase/(decrease) of cash & cash equivalents   (4,638)   (26,964)
Cash & Cash equivalents at the beginning of the year   140,867    196,028 
Exchange rate differences on cash & cash equivalents   57    (930)
Cash & cash equivalents at end of the period   136,285    168,133 

 

 

 

 

Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)

 

   for the three months ended
June 30,
   for the six months ended
June 30,
 
In 000€  2023   2022   2023   2022 
Net profit (loss) for the period   (494)   896    3,221    1,023 
Income taxes   532    600    1,249    898 
Financial expenses   670    1,320    2,045    2,561 
Financial income   (1,305)   (3,901)   (2,114)   (5,517)
Depreciation and amortization   5,353    5,374    10,664    10,816 
EBITDA   4,755    4,289    15,066    9,780 
Share-based compensation expense (1)   -    (49)   -    (97)
Adjusted EBITDA   4,755    4,240    15,066    9,683 

 

(1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.

 

 

 

 

Segment P&L (Unaudited)

 

In 000€  Materialise
Software
   Materialise
Medical
   Materialise
Manufacturing
   Total
segments
   Unallocated
(1)
   Consolidated 
For the three months ended June 30, 2023                              
Revenues   11,030    24,945    28,835    64,810    0    64,810 
Segment (adj) EBITDA   1,973    2,683    2,708    7,364    (2,608)   4,755 
Segment (adj) EBITDA %   17.9%   10.8%   9.4%   11.4%        7.3%
For the three months ended June 30, 2022                              
Revenues   10,642    20,855    26,574    58,070    0    58,070 
Segment (adj) EBITDA   821    4,474    1,581    6,876    (2,636)   4,240 
Segment (adj) EBITDA %   7.7%   21.5%   5.9%   11.8%        7.3%

 

In 000€  Materialise
Software
   Materialise
Medical
   Materialise
Manufacturing
   Total
segments
   Unallocated
(1)
   Consolidated 
For the six months ended June 30, 2023                              
Revenues   22,381    49,265    59,056    130,702    0    130,702 
Segment (adj) EBITDA   4,409    10,035    5,906    20,350    (5,285)   15,066 
Segment (adj) EBITDA %   19.7%   20.4%   10.0%   15.6%        11.5%
For the six months ended June 30, 2022                              
Revenues   21,125    39,201    50,705    111,032    0    111,032 
Segment (adj) EBITDA   2,753    7,701    4,192    14,647    (4,963)   9,683 
Segment (adj) EBITDA %   13.0%   19.6%   8.3%   13.2%        8.7%

 

(1)  Unallocated segment adjusted EBITDA consists of corporate research and development and corporate other operating income (expense), and the added share-based compensation expenses, acquisition related expenses of business combinations, impairments and fair value of business combinations that are included in Adjusted EBITDA.

 

 

 

 

Reconciliation of Net Profit (Loss) to Segment adjusted EBITDA (Unaudited)

 

   for the three months ended
June 30,
   for the six months ended
June 30,
 
In 000€  2023   2022   2023   2022 
Net profit (loss) for the period   (494)   896    3,221    1,023 
Income taxes   532    600    1,249    898 
Financial cost   670    1,320    2,045    2,561 
Financial income   (1,305)   (3,901)   (2,114)   (5,517)
Operating (loss) profit   (597)   (1,084)   4,402    (1,036)
Depreciation and amortization   5,353    5,374    10,664    10,816 
Corporate research and development   737    816    1,459    1,465 
Corporate headquarter costs   2,576    2,104    5,238    4,612 
Other operating income (expense)   (705)   (640)   (1,412)   (1,211)
Segment adjusted EBITDA   7,364    6,568    20,350    14,647 

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  MATERIALISE NV
     
  By:

/s/ Wilfried Vancraen

  Name: Wilfried Vancraen
  Title: Chief Executive Officer

 

Date: July 26, 2023