Form 6-K

 

 

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 March 2022

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  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

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

 

 

 


Fourth Quarter 2021 Financial Results

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

Fourth Quarter 2021 Results

Total revenue for the fourth quarter of 2021 increased 25.8% to 56,989 kEUR from 45,301 kEUR for the fourth quarter of 2020.

Revenue from our Materialise Software segment increased 19.3% to 12,183 kEUR from 10,216 kEUR for the same quarter last year.

Revenue from our Materialise Medical segment increased 20.3% to 20,682 kEUR for the fourth quarter of 2021, compared to 17,188 kEUR for the same period in 2020.

Revenue from our Materialise Manufacturing segment increased 34.9% to 24,135 kEUR from 17,889 kEUR for the fourth quarter of 2020.

Gross profit increased to 33,198 kEUR for the fourth quarter of 2021 from 26,165 kEUR for the same period last year. Gross profit as a percentage of revenue increased to 58.3%, compared to 57.8%.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 5.9% to 29,481 kEUR for the fourth quarter of 2021 from 27,843 kEUR for the fourth quarter of 2020.

Net other operating result improved to 1,260 kEUR compared to (296) kEUR for the fourth quarter of 2020.

Operating result increased to 4,976 kEUR, compared to (1,974) kEUR for the fourth quarter of 2020.

Net financial result for the fourth quarter of 2021 was 275 kEUR, compared to (596) kEUR for the fourth quarter of 2020.

The fourth quarter of 2021 contained net income tax expense of (490) kEUR, compared to net tax income of 531 kEUR for the fourth quarter of 2020.

As a result of the above, net profit for the fourth quarter of 2021 was 4,762 kEUR, compared to a net loss of (2,039) kEUR for the same period in 2020. Total comprehensive income for the fourth quarter of 2021 was 1,832 kEUR, compared to a loss of (1,181) kEUR for the 2020 period. This quarter’s comprehensive income included a (3,443) kEUR impairment of our equity interest in Essentium, Inc.

Adjusted EBITDA increased 42.3% to 10,490 kEUR, compared to 7,371 kEUR for the same period in 2020. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the fourth quarter of 2021 increased to 18.4%, compared to 16.3% for the fourth quarter of 2020.

Adjusted EBITDA from our Materialise Software segment increased to 5,518 kEUR from 3,867 kEUR while the Adjusted EBITDA margin for the segment (segment EBITDA divided by segment revenue) was 45.3%, compared to 37.9% for the prior-year period.

Adjusted EBITDA from our Materialise Medical segment increased 31.3% to 6,358 kEUR from 4,844 kEUR, while the Adjusted EBITDA margin for the segment increased to 30.7% from 28.2%.

Adjusted EBITDA from our Materialise Manufacturing segment increased to 1,167 kEUR compared to 1,099 kEUR, while the Adjusted EBITDA margin for the segment was 4.8%, compared to 6.1% for the prior-year period.


Full Year 2021 Results

Total revenues for the year ended December 31, 2021 increased 20.5% to 205,450 kEUR from 170,449 kEUR for the year ended December 31, 2020.

Revenues from our Materialise Software segment increased 9.9% to 42,902 kEUR for the year ended December 31, 2021 compared to 39,054 kEUR for the year ended December 31, 2020.

Revenues from our Materialise Medical segment grew by 18.9% for the year ended December 31, 2021 to 73,368 kEUR from 61,729 kEUR for the year ended December 31, 2020.

Revenues from our Materialise Manufacturing segment increased 28.3% to 89,334 kEUR for the year ended December 31, 2021 from 69,635 kEUR for the year ended December 31, 2020.

Operating profit increased to 12,217 kEUR for the year ended December 31, 2021 compared to a loss of (4,639) kEUR in the prior year.

Net financial income amounted to 1,519 kEUR, compared to net financial expenses of (3,542) kEUR for the year ended December 31, 2020. Income taxes amounted to (591) kEUR compared to 1,028 kEUR for the year ended December 31, 2020. Net result increased to 13,145 kEUR for 2021 from a net loss of (7,192) kEUR in 2020.

At December 31, 2021, we had cash and equivalents of 196,028 kEUR compared to 111,538 kEUR at December 31, 2020. Gross debt amounted to 99,107 kEUR (of which 21,202 kEUR was short term), compared to 115,110 kEUR at December 31, 2020.

Cash flow from operating activities for the year ended December 31, 2021 was 25,843 kEUR compared to 29,979 kEUR in the year ended December 31, 2020. Total capital expenditures for the year ended December 31, 2021 amounted to 11,721 kEUR. This amount included 2,570 kEUR of capitalized expenditures from intangible assets, of which 1,553 kEUR related to our ongoing internal digital transformation program.

Net shareholders’ equity at December 31, 2021 was 232,577 kEUR compared to 133,183 kEUR at December 31, 2020.

Adjusted EBITDA for 2021 increased 59.5% to 32,497 kEUR from 20,378 kEUR for 2020. The Adjusted EBITDA margin increased to 15.8%, compared to 12.0% in 2020.

Adjusted EBITDA from our Materialise Software segment increased 17.9% to 15,784 kEUR from 13,383 kEUR. The segment’s Adjusted EBITDA margin increased to 36.8% in 2021, compared to 34.3% in 2020.

Adjusted EBITDA from our Materialise Medical segement increased 48.5% to 20,669 kEUR from 13,914 kEUR. The segment’s Adjusted EBITDA margin increased to 28.2% in 2021, compared to 22.5% in 2020.

Adjusted EBITDA from our Materialise Manufacturing segment increased 152.5% to 6,429 kEUR from 2,546 kEUR. The segment’s Adjusted EBITDA margin increased to 7.2% in 2021 from 3.7% for 2020.

Link3D Acquisition

On January 4, 2022, Materialise acquired for 33.5 mUSD 100% of the equity interests of Link3D, an additive workflow and digital manufacturing software company that supports customers in major manufacturing industries to scale and integrate their AM operations across complex supply chains and IT environments.

Note on Comparability

The year 2020 has been restated to reflect certain reclassification adjustments and the final accounting of the RS Print business combination. The fair value analysis with respect to the assets and liabilities acquired had not been finalized as of December 31, 2020. Within 12 months of acquisition, we completed the fair value analysis of the RS Print business combination, with corresponding adjustments to goodwill and deferred tax liabilities. The impact has been accounted for as retrospective adjustments to our consolidated statement of financial position as of December 31, 2020 and our consolidated income statement for the year ended December 31, 2020. It concerned a decrease of the goodwill of (1,743) kEUR and a decrease of the deferred tax liabilities of (1,823) kEUR.


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 1.1326, the reference rate of the European Central Bank on December 31, 2021.

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 the largest groups of software developers in the industry with one of the largest and most complete 3D printing facilities in the world.


Consolidated income statements (Unaudited)

 

     for the three months ended
December 31,
    for the twelve months ended
December 31,
 
In 000€    2021     2021     2020(*)     2021     2021     2020(*)  
     U.S.$             U.S.$          

Revenue

     64,546       56,989       45,301       232,693       205,450       170,449  

Cost of Sales

     (26,946     (23,791     (19,137     (99,860     (88,169     (76,446

Gross Profit

     37,600       33,198       26,165       132,833       117,281       94,003  

Gross profit as % of revenue

     58.3     58.3     57.8     57.1     57.1     55.2

Research and development expenses

     (7,810     (6,896     (8,669     (30,457     (26,891     (27,104

Sales and marketing expenses

     (15,200     (13,421     (10,938     (55,668     (49,151     (44,636

General and administrative expenses

     (10,380     (9,165     (8,236     (36,924     (32,601     (29,337

Net other operating income (expenses)

     1,427       1,260       (296     4,053       3,578       2,435  

Operating (loss) profit

     5,637       4,976       (1,974     13,837       12,217       (4,639

Financial expenses

     (1,041     (919     (1,073     (4,645     (4,101     (5,996

Financial income

     1,353       1,195       477       6,366       5,620       2,453  

Share in loss of joint venture

     —         —         —         —         —         (39

(Loss) profit before taxes

     5,949       5,252       (2,570     15,558       13,736       (8,220

Income Taxes

     (554     (490     531       (669     (591     1,028  

Net (loss) profit for the period

     5,395       4,762       (2,039     14,889       13,145       (7,192

Net (loss) profit attributable to:

     —             —        

The owners of the parent

     5,401       4,769       (2,203     14,899       13,154       (7,044

Non-controlling interest

     (8     (7     163       (10     (9     (148

Earning per share attributable to owners of the parent

            

Basic

     0.09       0.08       (0.04     0.26       0.23       (0.13

Diluted

     0.09       0.08       (0.04     0.26       0.23       (0.13

Weighted average basic shares outstanding

     58,892       58,892       53,897       56,685       56,685       53,364  

Weighted average diluted shares outstanding

     59,025       59,025       53,897       56,843       56,843       53,364  

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with RS Print. Impact on Income Taxes and Net profit is 79 k€.


Consolidated statements of comprehensive income (Unaudited)

 

     for the three months ended
December 31,
    for the twelve months ended
December 31,
 
In 000€    2021     2021     2020(*)     2021     2021     2020(*)  
     U.S.$             U.S.$          

Net profit (loss) for the period

     5,395       4,762       (2,039     14,889       13,145       (7,192

Other comprehensive income

            

Recycling

            

Exchange difference on translation of foreign operations

     636       561       369       2,437       2,152       (6,176

Non-recycling

            

Fair value adjustments through OCI—Equity instruments

     (3,954     (3,491     489       (3,900     (3,443     489  

Other comprehensive income (loss), net of taxes

     (3,318     (2,930     858       (1,463     (1,292     (5,687

Total comprehensive income (loss) for the year, net of taxes

     2,075       1,832       (1,181     13,425       11,853       (12,879

Total comprehensive income (loss) attributable to:

            

The owners of the parent

     2,083       1,839       (1,289     13,436       11,863       (11,816

Non-controlling interests

     (8     (7     108       (11     (9     (1,063

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with RS Print. Impact on Net profit for the period is (79) k€.


Consolidated statement of financial position (Unaudited)

 

     As of
December 31,
     As of
December 31,
 
In 000€    2021      2020(*)  

Assets

     

Non-current assets

     

Goodwill

     18,726        18,599  

Intangible assets

     31,668        32,981  

Property, plant & equipment

     84,451        88,267  

Right-of-Use assets

     9,054        10,996  

Investments in joint ventures

        —    

Deferred tax assets

     227        201  

Investments in convertible loans

     3,560        6,203  

Investments in non-listed equity instruments

     399        3,842  

Other non-current assets

     7,520        4,093  

Total non-current assets

     155,605        165,182  

Current assets

     

Inventories

     11,295        10,043  

Trade receivables

     41,541        30,871  

Other current assets

     8,940        8,290  

Cash and cash equivalents

     196,028        111,538  

Total current assets

     257,803        160,741  

Total assets

     413,408        325,923  

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with RS Print. Impact on Goodwill is (1,743) k€.


     As of     As of  
     December 31,     December 31,  
In 000€    2021     2020*  

Equity and liabilities

    

Equity

    

Share capital

     4,467       4,096  

Share premium

     229,021       141,274  

Retained earnings and other reserves

     (911     (12,187

Equity attributable to the owners of the parent

     232,577       133,183  

Non-controlling interest

     (2     —    

Total equity

     232,578       133,183  

Non-current liabilities

    

Loans & borrowings

     72,637       90,502  

Lease liabilities

     5,268       7,086  

Deferred tax liabilities

     4,371       4,983  

Deferred income

     4,952       5,328  

Other non-current liabilities

     2,168       396  

Total non-current liabilities

     89,396       108,295  

Current liabilities

    

Loans & borrowings

     17,849       13,984  

Lease liabilities

     3,353       3,538  

Trade payables

     20,171       17,698  

Tax payables

     783       974  

Deferred income

     33,306       29,556  

Other current liabilities

     15,972       18,695  

Total current liabilities

     91,434       84,445  

Total equity and liabilities

     413,408       325,923  

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with RS Print. Impact on Retained earnings is 79 k€ and impact on Deferred tax liabilities is (1,823) k€.


Consolidated statement of cash flows (Unaudited)

 

     for the twelve months ended  
     December 31,  
In 000€    2021     2020*  

Operating activities

    

Net (loss) profit for the period

     13,145       (7,192

Non-cash and operational adjustments

    

Depreciation of property plant & equipment

     15,541       14,932  

Amortization of intangible assets

     4,975       4,742  

Impairment of goodwill and intangible assets

     177       4,606  

Share-based payment expense

     (1,036     752  

Loss (gain) on disposal of property, plant & equipment

     210       10  

Movement in provisions

     99       137  

Movement reserve for bad debt and slow moving inventory

     255       516  

Financial income

     (5,620     (2,300

Financial expense

     4,101       5,821  

Impact of foreign currencies

     73       61  

Share in loss (gain) of a joint venture (equity method)

     —         39  

(Deferred) income taxes

     591       (1,049

Other non-current liabilities

     —         (1,093

Working capital adjustments

     (5,890     12,512  

Decrease (increase) in trade receivables and other receivables

     (10,920     9,205  

Decrease (increase) in inventories and contracts in progress

     (1,423     2,724  

Increase (decrease) in trade payables and other payables

     6,453       583  

Income tax paid & Interest received

     (776     (2,515

Net cash flow from operating activities

     25,843       29,979  

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with RS Print. Impact on Net profit for the period is 79 k€ and impact on (Deferred) income taxes is (79) k€.


     for the twelve months ended  
     December 31,  
In 000€    2021     2020  

Investing activities

    

Purchase of property, plant & equipment

     (7,934     (11,032

Purchase of intangible assets

     (3,788     (6,618

Proceeds from the sale of property, plant & equipment & intangible assets (net)

     462       552  

Acquisition of subsidiary (net of cash)

     (875     (8,031

(Convertible) Loans granted

     (999     (2,836

Other equity investments in non-listed entities

     —         (300

Net cash flow used in investing activities

     (13,133     (28,265

Financing activities

    

Repayment of loans & borrowings

     (14,277     (13,736

Repayment of leases

     (3,775     (3,640

Capital increase

     88,117       4,112  

Interest paid

     (2,326     (2,268

Other financial income (expense)

     3,417       (1,356

Net cash flow from (used in) financing activities

     71,156       (16,888

Net increase/(decrease) of cash & cash equivalents

     83,866       (15,174

Cash & Cash equivalents at the beginning of the year

     111,538       128,897  

Exchange rate differences on cash & cash equivalents

     624       (2,184

Cash & cash equivalents at end of the year

     196,028       111,539  


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

 

     for the three months ended
December 31,
    for the twelve months ended
December 31,
 
In 000€    2021     2020 (*)     2021     2020 (*)  

Net profit (loss) for the period

     4,762       (2,039     13,145       (7,192

Income taxes

     490       (531     591       (1,028

Financial expenses

     919       1,073       4,101       5,996  

Financial income

     (1,195     (477     (5,620     (2,453

Depreciation and amortization

     5,277       5,160       20,516       19,775  

Share in loss of joint venture

     —         —         —         39  

EBITDA

     10,253       3,185       32,733       15,136  

Share-based compensation expense (1)

     44       286       (834     1,344  

Revaluation of fair value due to business combinations (2)

     8       (770     8       (770

Impairments (3)

     177       4,606       177       4,606  

Acquisition-related expenses of business combinations (4)

     8       63       413       63  

Adjusted EBITDA

     10,490       7,371       32,497       20,378  

 

(1)

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

(2)

Represents a positive revaluation of our initial 50% interest in RS Print after our acquisition of the remaining interest in the joint-venture.

(3)

Impairments represents in 2021 the impairment of capitalized expenditures related to the goodwill of metal company Aldema BV (177kEUR), and in 2020 the impairment of capitalized expenditures related to our tracheal splint development program (2,090kEUR) and related to the goodwill and intangible assets of Engimplan (2,516 kEUR).

(4)

Acquisition-related expenses of business combinations represents expenses incurred in connection with the RS Print acquisition in 2020.

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with RS Print. Impact on Net profit for the period is 79 k€ and impact on (Deferred) income taxes is (79) k€.


Segment P&L (Unaudited)

 

In 000€    Materialise
Software
    Materialise
Medical
    Materialise
Manufacturing
    Total
segments
    Unallocated
(1)
    Consolidated  

For the three months ended December 31, 2021

            

Revenues

     12,183       20,682       24,135       57,000       (11     56,989  

Segment (adj) EBITDA

     5,518       6,358       990       12,866       (2,376     10,490  

Segment (adj) EBITDA %

     45.3     30.7     4.1     22.6       18.4

For the three months ended December 31, 2020

            

Revenues

     10,216       17,188       17,889       45,292       9       45,301  

Segment (adj) EBITDA

     3,867       4,844       1,099       9,811       (2,440     7,371  

Segment (adj) EBITDA %

     37.9     28.2     6.1     21.7       16.3
In 000€    Materialise
Software
    Materialise
Medical
    Materialise
Manufacturing
    Total
segments
    Unallocated
(1)
    Consolidated  

For the twelve months ended December 31, 2021

            

Revenues

     42,902       73,368       89,334       205,604       (154     205,450  

Segment (adj) EBITDA

     15,784       20,669       6,252       42,704       (10,207     32,497  

Segment (adj) EBITDA %

     36.8     28.2     7.0     20.8       15.8

For the twelve months ended December 31, 2020

            

Revenues

     39,054       61,729       69,635       170,418       31       170,449  

Segment (adj) EBITDA

     13,383       13,914       2,546       29,843       (9,465     20,378  

Segment (adj) EBITDA %

     34.3     22.5     3.7     17.5       12.0

 

(1)

Unallocated segment adjusted EBITDA consists of corporate research and development, corporate headquarter costs 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
December 31,
    for the twelve months ended
December 31,
 
In 000€    2021     2020(*)     2021     2020(*)  

Net profit (loss) for the period

     4,762       (2,039     13,145       (7,192

Income taxes

     490       (531     591       (1,028

Financial cost

     919       1,073       4,101       5,996  

Financial income

     (1,195     (477     (5,620     (2,453

Share in loss of joint venture

     —         —         —         39  

Operating (loss) profit

     4,976       (1,974     12,217       (4,639

Depreciation and amortization

     5,277       5,160       20,516       19,775  

Corporate research and development

     812       807       3,149       2,989  

Corporate headquarter costs

     2,923       3,300       10,350       15,955  

Other operating income (expense)

     (1,122     2,518       (3,527     (4,237

Segment adjusted EBITDA

     12,866       9,811       42,704       29,843  

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with RS Print. Impact on Net profit for the period is 79 k€ and impact on (Deferred) income taxes is (79) k€.


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: March 3, 2022