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 September 2016

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   ¨

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).

 

 

 


First Quarter and Second Quarter 2016 Financial Results

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

First Quarter 2016 Results

Total revenue for the first quarter of 2016 increased by 14.2% to 26,667 kEUR compared to 23,348 kEUR for the first quarter of 2015, driven by gains in all three of our segments.

Revenues from the Materialise Software segment, which offers a proprietary software backbone that enables and enhances the functionality of 3D printers and 3D printing operations worldwide, increased by 21.5% to 7,431 kEUR for the first quarter of 2016 from 6,116 kEUR for the same quarter last year, as a result of a continued increase in revenue generated by original equipment manufacturers and a steady growth of recurring license revenue.

Revenues from our Materialise Medical segment, which offers a unique platform consisting of medical planning and design software, clinical engineering services and patient specific devices, increased by 9.7% to 8,606 kEUR for the first quarter of 2016 compared to 7,848 kEUR for the same period in 2015. Medical software sales (consisting of revenue and deferred revenue, or “sales”) grew by 3.8% from 3,588 kEUR to 3,724 kEUR, driven by both new annual license sales and the renewal of annual licenses. Direct sales of our complex surgery solutions increased by 26.7% from the prior-year period. Sales from our collaborated medical device business increased 12.3% as a result of a more diversified mix of partnerships .

Revenues from our Materialise Manufacturing segment, which offers an integrated suite of 3D printing and engineering services to industrial and commercial customers, increased 13.0% to 10,606 kEUR for the first quarter of 2016 from 9,384 kEUR for the first quarter of 2015, primarily as a result of higher end part manufacturing.

Gross profit was 15,962 kEUR, or 59.9% of revenue, for the first quarter of 2016 compared to 13,467 kEUR, or 57.7% of revenue, for the first quarter of 2015, resulting from a continued shift of our revenue mix towards both industrial and medical software licenses as well as an improvement of the gross margin of our Materialise Manufacturing segment.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, by 5.4% to 18,237 kEUR from 17,297 kEUR for the first quarter of 2015. R&D expenses remained relatively stable, moving from 4,507 kEUR to 4,372 kEUR, S&M expenses decreased modestly from 9,215 kEUR to 8,815 kEUR and G&A expenses increased from 3,575 kEUR to 5,050 kEUR. These changes primarily reflected the managerial structure and support that we have been implementing within our S&M and R&D groups to support their significant growth in the past 18 months. A number of employees with mixed roles within these groups have evolved into more managerial/administrative roles, and their cost as well as certain other expenses are now categorized into G&A.

Net other operating income decreased by 494 kEUR to 1,286 kEUR, compared to 1,780 kEUR for the first quarter of 2015. Net other operating income consists primarily of withholding tax exemptions for qualifying researchers, development grants, partial funding of R&D projects and currency exchange results on purchase and sales transactions. The decrease versus last year was primarily due to the variance in the currency exchange effect, resulting in a loss of (48) kEUR from a gain of 493 kEUR in the same period last year.

Net financial result was (734) kEUR, compared to 1,472 kEUR for the prior-year period, reflecting the variance in the currency exchange rate, primarily on the portion of the Company’s initial public offering (“IPO”) proceeds held in U.S. dollars versus the euro, a reported but mostly unrealized exchange loss.

Net loss for the first quarter of 2016 was (3,151) kEUR, compared to a net loss of (888) kEUR for the same period in the prior year, as a result of an increase of income tax by (1,010) kEUR (primarily due to the usage of a deferred tax asset) and a decrease of our net financial result by (2,206) kEUR, which were partially offset by an improvement of our operating profit by 1,061 kEUR. Total comprehensive loss for the first quarter of 2015, which reflects exchange differences on translation of foreign operations, was (4,115) kEUR compared to a gain of 425 kEUR for the same period in the prior year.


Adjusted EBITDA (a non-IFRS financial measure defined below) rose from (288) kEUR to 1,135 kEUR, as a result of the combination of continued revenue growth and a modest increase in operational expenses. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) in the first quarter was 4.3% compared to (1.2)% in the first quarter of last year.

Our Materialise Software segment’s EBITDA (a non-IFRS financial measure defined below) increased to 2,765 kEUR from 2,215 kEUR while the segment EBITDA margin (the segment’s EBITDA divided by the segment’s revenue) rose to 37.2% from 36.2% in the prior-year period.

Our Materialise Medical segment’s EBITDA improved to (530) kEUR from (746) kEUR and the segment EBITDA margin improved to (6.2)% from (9.5)% in the first quarter of 2015.

Our Materialise Manufacturing segment’s EBITDA rose to 257 kEUR from (40) kEUR while the segment EBITDA margin increased to 2.4% from (0.4)% for the 2015 quarter. Excluding our growth businesses, i.materialise and RapidFit, the segment EBITDA margin for the first quarter was 9.7% as compared to 10.0% for the same quarter of the prior year.

At March 31, 2016, we had cash and equivalents of 49,435 kEUR compared to 50,726 kEUR at December 31, 2015. Cash flow from operating activities in the first quarter of 2016 was 1,376 kEUR.

Net shareholders’ equity at March 31, 2016 was 79,028 kEUR, a decrease of 3,927 kEUR since December 31, 2015.

Second Quarter 2016 Results

Total revenue for the second quarter of 2016 increased by 11.4% to 27,597 kEUR compared to 24,772 kEUR for the second quarter of 2015, with gains in all three of our segments.

Revenue from our Materialise Software segment, which offers a proprietary software backbone that enables and enhances the functionality of 3D printers and 3D printing operations worldwide, increased by 14.9% to 6,981 kEUR for the second quarter of 2016 from 6,078 kEUR for the same quarter last year, driven by the continued growth of recurring license revenue.

Revenue from our Materialise Medical segment, which offers a unique platform consisting of medical planning and design software, clinical engineering services and patient specific devices, increased by 16.7% to 9,706 kEUR for the second quarter of 2016 compared to 8,315 kEUR for the same period in 2015. The increase was driven by direct sales of our complex surgery solutions, which increased by 41.7% from the prior-year period, and by sales from our collaborated medical device business, which increased 13.6%. Our medical software sales decreased by 2.0% compared to the same quarter in 2015.

Revenue from our Materialise Manufacturing segment, which offers an integrated suite of 3D printing and engineering services to industrial and commercial customers, increased 5.1% to 10,907 kEUR for the second quarter of 2016 from 10,379 kEUR for the second quarter of 2015, primarily as a result of higher end part manufacturing.

Gross profit was 16,253 kEUR, or 58.9% of total revenue, for the second quarter of 2016 compared to 14,327 kEUR, or 57.8% of total revenue, for the second quarter of 2015. The increase was primarily a result of the improvement in the gross margin of the Materialise Manufacturing segment.

R&D, S&M and G&A expenses increased, in the aggregate, by 8.1% to 19,182 kEUR for the second quarter of 2016 from 17,738 kEUR for the second quarter of 2015. R&D expenses increased from 4,371 kEUR to 4,760 kEUR while S&M expenses declined slightly from 9,620 kEUR to 9,533 kEUR. G&A expenses increased from 3,747 kEUR to 4,889 kEUR. These changes compared to last year primarily reflected the managerial structure and support we have been implementing within our S&M and R&D groups to support their significant growth since our IPO. A number of employees with mixed roles within these groups have evolved into more managerial/administrative roles, and their cost as well as certain other expenses are now categorized into G&A.


Net other operating income increased by 304 kEUR to 1,778 kEUR, compared to 1,474 kEUR for the second quarter of 2015. Net other operating income consists primarily of withholding tax exemptions for qualifying researchers, development grants, partial funding of R&D projects and currency exchange results on purchase and sales transactions.

Net financial result was 207 kEUR, compared to (938) kEUR for the prior-year period, reflecting the variance in the currency exchange rate, primarily on the portion of our IPO proceeds held in U.S. dollars versus the euro, a reported but mostly unrealized exchange gain.

Net loss for the second quarter of 2016 was (436) kEUR, compared to a net loss of (3,013) kEUR for the same period in the prior year: an improvement of 2,577 kEUR, as a result of an increase of 786 kEUR of operating profit, an improvement of the financial result of 1,077 kEUR, and an improvement in income tax income of 714 kEUR primarily due to a decrease of tax liabilities. Total comprehensive loss for the second quarter of 2016, which reflects exchange differences on translation of foreign operations, was (911) kEUR compared to (2,850) kEUR for the same period in the prior year.

Adjusted EBITDA increased from (179) kEUR to 1,034 kEUR, as a result of the combination of continued revenue growth, an improvement in our gross margins and a moderate increase in operational expenses. The Adjusted EBITDA margin in the second quarter was 3.7% compared to (0.7)% in the second quarter of last year .

Our Materialise Software segment’s EBITDA declined to 1,602 kEUR from 2,015 kEUR while the segment EBITDA margin was 22.9% compared to 33.2% in the prior-year period. This change reflects a significant increase in R&D expenses for well-defined software projects we have recently undertaken.

Our Materialise Medical segment’s EBITDA improved to 14 kEUR from (342) kEUR while the segment EBITDA margin improved to 0.1% from (4.1)% in the second quarter of 2015.

Our Materialise Manufacturing segment’s EBITDA rose to 430 kEUR from (147) kEUR while the segment EBITDA margin increased to 3.9% from (1.4)% for the 2015 quarter. Excluding our growth businesses, i.materialise and RapidFit, the segment EBITDA margin for the second quarter were was 13.0%, compared to 8.4% for the same quarter of the prior year

At June 30, 2016, we had cash and cash equivalents of 51,304 kEUR compared to 50,726 kEUR at December 31, 2015. Cash flow from operating activities in the second quarter of 2016 was 4,405 kEUR, compared to 543 kEUR in the same period last year.

Net shareholders’ equity at June 30, 2016 was 78,247 kEUR, a decrease of 4,708 kEUR since December 31, 2015.

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 loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding non-cash stock-based compensation expenses 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 report contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. For the first quarter 2016 results, all translations from euros to U.S. dollars in this report were made at a rate of EUR 1.00 to USD 1.1385, the 12:00 noon ET buying rate of the Federal Reserve Bank of New York for the euro on March 31, 2016. For the second quarter 2016 results, all such translations were made at a rate of EUR 1.00 to USD 1.1102 on June 30, 2016.

About Materialise

Materialise incorporates more than 25 years of 3D printing experience into a range of software solutions and 3D printing services, which Materialise seeks to 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.


First Quarter 2016 Results

Consolidated income statements (Unaudited)

 

     For the three months ended
March 31
 
     2016     2016     2015  
(In thousands, except EPS)    U.S. $          

Revenue

     30,360        26,667        23,348   

Cost of Sales

     (12,188 )     (10,705 )     (9,881 )
  

 

 

   

 

 

   

 

 

 

Gross Profit

     18,172        15,962        13,467   

Research and development expenses

     (4,978 )     (4,372 )     (4,507 )

Sales and marketing expenses

     (10,036 )     (8,815 )     (9,215 )

General and administrative expenses

     (5,749 )     (5,050 )     (3,575 )

Net other operating income (expenses)

     1,464        1,286        1,780   
  

 

 

   

 

 

   

 

 

 

Operating (Loss) Profit

     (1,127 )     (989 )     (2,050 )

Financial expenses

     (1,021 )     (897 )     (449 )

Financial income

     186        163        1,921   

Share in loss of a joint venture

     (191 )     (168 )     (60 )
  

 

 

   

 

 

   

 

 

 

Profit before taxes

     (2,153 )     (1,891 )     (638 )

Income Taxes (benefit)

     (1,435 )     (1,260 )     (250 )
  

 

 

   

 

 

   

 

 

 

Net profit (loss)

     (3,588 )     (3,151 )     (888 )

Net profit (loss) attributable to:

      

The owners of the parent

     (3,588 )     (3,151 )     (835 )

Non-controlling interest

     —         —         (53 )

EPS attributable to the owners of the parent

      

Basic

     (0.08 )     (0.07 )     (0.02 )

Diluted

     (0.08 )     (0.07 )     (0.02 )

Weighted average basic shares outstanding

     47,325        47,325        47,170   

Weighted average fully diluted shares outstanding

     47,325        47,325        47,170   


Consolidated statements of comprehensive income (Unaudited)

 

     For the three months
ended March 31
 
(In thousands)    2016     2016     2015  
     U.S. $          

Net profit (loss) for the year

     (3,588     (3,151     (888

Other comprehensive income

  

Exchange differences on translation of foreign operations

     (1,098     (964     1,313   

Other comprehensive income (loss), net of taxes

     (1,098     (964     1,313   

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

     (4,686     (4,115     425   

Total comprehensive income (loss) attributable to:

  

The owners of the parent

     (4,686     (4,115     478   

Non-controlling interest

     —         —         (53


Consolidated statements of financial position (Unaudited)

(in thousands of euros)

 

     As of
March 31,
    As of
December 31,
 
     2016     2015  

Assets

    

Current assets

    

Inventory

     5,172        5,387   

Trade receivables

     23,152        22,843   

Other current assets

     4,981        4,993   

Held to maturity investments

     —         —    

Cash and cash equivalent

     49,435        50,726   
  

 

 

   

 

 

 

Total current assets

     82,740        83,949   

Non-current assets

    

Goodwill

     9,269        9,664   

Intangible assets

     9,059        9,657   

Property, plant & equipment

     38,102        38,400   

Investments in joint ventures

     850        1,018   

Deferred tax assets

     109        1,092   

Other financial assets

     323        356   

Total non-current assets

     57,712        60,187   
  

 

 

   

 

 

 

Total assets

     140,452        144,136   

Equity and liabilities

    

Current liabilities

    

Loans & borrowings

     4,137        4,482   

Trade Payables

     8,470        9,712   

Tax Payables

     495        255   

Deferred income

     18,116        16,509   

Other current liabilities

     9,252        9,212   
  

 

 

   

 

 

 

Total current liabilities

     40,470        40,170   

Non-current liabilities

    

Loans & borrowings

     16,605        16,607   

Deferred tax liabilities

     1,953        2,068   

Deferred income

     65        92   

Other non-current liabilities

     2,331        2,244   
  

 

 

   

 

 

 

Total non-current liabilities

     20,954        21,011   

Net equity

    

Share capital

     2,729        2,729   

Share premium

     78,284        78,098   

Consolidated reserves

     (1,742     1,407   

Other comprehensive income (loss)

     (243     721   

Equity attributable to the owners of the parent

     79,028        82,955   
  

 

 

   

 

 

 

Non-controlling interest

     —         —    
  

 

 

   

 

 

 

Total equity

     79,028        82,955   

Total equity and liabilities

     140,452        144,136   


Consolidated cash flow statements (Unaudited)

 

(in thousands of euros)    For the three months
ended
 
     March 31,
2016
    March 31,
2015
 

Operating activities

    

Net profit (loss) for the period

     (3,151     (888

Non-cash and operating adjustments

    

Depreciation of property, plant & equipment

     1,448        1,219   

Amortization of intangible assets

     462        323   

Share-based payment expense

     214        220   

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

     —         (111

Fair value adjustment contingent liabilities

     —         —    

Movement in provisions and allowance for bad debt

     42        (2

Financial income

     (48     (137

Financial expense

     254        240   

Impact of foreign currencies

     528        (2,024

Share of loss in a joint venture

     168        60   

Deferred tax expense (income)

     868        171   

Income taxes

     358        79   

Other

     —         (5

Working capital adjustments

    

Increase in trade receivables and other receivables

     (285     (1,364

Decrease (increase) in inventories

     215        (775

Increase in trade payables and other payables

     421        3,988   

Income taxes paid

     (118     (176
  

 

 

   

 

 

 

Net cash flow from operating activities

     1,376        818   

Investing activities

    

Purchase of property, plant & equipment

     (1,325     (2,809

Purchase of intangible assets

     (265     (234

Proceeds from the sale of property, plant & equipment, net

     85        2,535   

Acquisition of subsidiaries

     —         (1,797

Investments in joint-ventures

     —         (500

Investments in held to maturity investments

     —         3,000   

Interest received

     3        49   

Net cash flow used in investing activities

     (1,502     244   

Financing activities

    

Proceeds from loans & borrowings and convertible debt

     604        269   

Repayment of loans & borrowings

     (656     (2,320

Repayment of finance leases

     (419     (342

Purchase of non-controlling interest

     —         (1,377

Capital increase in parent company

     —         580   

Interest paid

     (141     (137

Other financial income (expense)

     (33     (32
  

 

 

   

 

 

 

Net cash flow from financing activities

     (645     (3,359

Net increase of cash and cash equivalents

     (771     (2,297

Cash and cash equivalents at beginning of period

     50,726        51,019   

Exchange rate differences on cash & cash equivalents

     (520     1,849   
  

 

 

   

 

 

 

Cash & cash equivalents at end of period

     49,435        50,571   


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

 

    

For the three months

ended March 31

 
(in thousands of euros)    2016      2015  

Net profit/(loss)

     (3,151      (888

Income taxes

     1,260         250   

Financial expenses

     897         449   

Financial income

     (163      (1,921

Share in loss of a joint venture

     168         60   

Depreciation & amortization

     1,910         1,542   

EBITDA

     921         (508

Non-recurring IPO expenses(1)

     0         0   

Non-cash stock-based compensation
expenses(2)

     214         220   

Adjusted EBITDA

     1,135         (288

 

(1) Non-recurring IPO expenses represent fees and costs incurred in connection with the Company’s initial public offering.
(2) Non-cash stock-based compensation expenses represent the cost of equity-settled and cash-settled share-based payments to employees.

Segment P&L (Unaudited)

 

(In thousands of euros, except percentages)    Materialise
Software
    Materialise
Medical
    Materialise
Manufacturing
    Total
Segments
    Adjustments &
Eliminations
    Consolidated  

For the three month period ended March 31, 2016

            

Revenues

     7,431        8,606        10,606        26,643        24        26,667   

Segment EBITDA

     2,765        (530     257        2,492        (1,571     921   

Segment EBITDA %

     37.2     (6.2 )%      2.4     9.4       3.5

For the three month period ended March 31, 2015

            

Revenues

     6,116        7,848        9,384        23,348        —         23,348   

Segment EBITDA

     2,215        (746     (40     1,429        (1,937     (508

Segment EBITDA %

     36.2     (9.5 )%      (0.4 )%      6.1       (2.2 )% 

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

 

    

For the three months

ended March 31

 
(in thousands of euros)    2016      2015  

Net profit/(loss)

     (3,151      (888

Income taxes

     1,260         250   

Finance costs

     897         449   

Finance income

     (163      (1,921

Share in loss of a joint venture

     168         60   

Operating profit

     (989      (2,050

Depreciation & amortization

     1,910         1,542   

Corporate research and development

     567         919   

Corporate headquarters costs

     1,738         2,197   

Other operating income (expense)

     (734      (1,179

Segment EBITDA

     2,492         1,429   


Second Quarter 2016 Results

Consolidated income statements (Unaudited)

 

     For the three months ended
June 30
    For the six months
ended June 30
 
(in thousands, except EPS)    2016     2016     2015     2016     2015  
     U.S.$     euros     euros     euros     euros  

Revenue

     30,638        27,597        24,772        54,264        48,120   

Cost of sales

     (12,594     (11,344     (10,445     (22,049     (20,326
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     18,044        16,253        14,327        32,215        27,794   
       58.9     57.8     59.4     57.8

Research and development expenses

     (5,285     (4,760     (4,371     (9,132     (8,878

Sales and marketing expenses

     (10,584     (9,533     (9,620     (18,348     (18,835

General and administrative expenses

     (5,428     (4,889     (3,747     (9,939     (7,322

Other operating income

     1,974        1,778        2,462        3,064        4,370   

Other operating expenses

     —         —         (988     —         (1,116
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     (1,279     (1,151     (1,937     (2,140     (3,987

Financial expenses

     (676     (609     (1,286     (1,506     (1,735

Financial income

     906        816        348        979        2,269   

Share in loss of joint venture

     (145     (131     (63     (299     (123
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit (loss) before taxes

     (1,194     (1,075     (2,938     (2,966     (3,576

Income taxes

     709        639        (75     (621     (325
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit (loss)

     (485     (436     (3,013     (3,587     (3,901
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit (loss) attributable to:

          

The owners of the parent

     (485     (436     (3,013     (3,587     (3,848

Non-controlling interest

     —         —         —         —         (53

Earnings per share attributable to ordinary owners of the parent

          

Basic

     (0.01     (0.01     (0.06     (0.08     (0.08

Diluted

     (0.01     (0.01     (0.06     (0.08     (0.08

Weighted average basic

     47,325        47,325        47,227        47,325        47,199   

Weighted average with effect dilution

     47,325        47,325        47,227        47,325        47,199   


Consolidated statements of comprehensive income (Unaudited)

 

(in thousands, except EPS)                               
     For the three months ended     For the six months  
     30 June     ended 30 June  
     2016     2016     2015     2016     2015  
     U.S.$     euros     euros     euros     euros  

Net profit (loss) for the period

     (485     (436     (3,013     (3,587     (3,901
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss)

          

Exchange differences on translation of foreign operations

     (527     (475     163        (1,439     1,476   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss), net of taxes

     (527     (475     163        (1,439     1,476   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     (1,012     (911     (2,850     (5,026     (2,425
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss) attributable to:

          

The owners of the parent

     (1,012     (911     (2,850     (5,026     (2,372

Non-controlling interest

     —         —         —         —         (53


Consolidated statements of financial position (Unaudited)

 

     30 June     31 December  
(in thousand euros)    2016     2015  

Assets

    

Non-current assets

    

Goodwill

     9,023        9,664   

Intangible assets

     8,801        9,657   

Property, plant & equipment

     41,180        38,400   

Investments in joint ventures

     719        1,018   

Deferred tax assets

     531        1,092   

Other financial assets

     339        356   
  

 

 

   

 

 

 

Total non-current assets

     60,593        60,187   

Current assets

    

Inventory

     5,392        5,387   

Trade receivables

     20,547        22,843   

Tax receivables

    

Held to maturity investments

     —         —    

Other current assets

     5,421        4,993   

Cash and cash equivalents

     51,304        50,726   
  

 

 

   

 

 

 

Total current assets

     82,664        83,949   
  

 

 

   

 

 

 

Total assets

     143,257        144,136   
  

 

 

   

 

 

 

Equity and liabilities

    

Equity

    

Share capital

     2,729        2,729   

Share premium

     78,411        78,098   

Consolidated reserves

     (2,175     1,407   

Treasury shares

       —    

Other comprehensive income

     (718     721   
  

 

 

   

 

 

 

Equity attributable to the owners of the parent

     78,247        82,955   

Non-controlling interest

     —         —    
  

 

 

   

 

 

 

Total equity

     78,247        82,955   

Non-current liabilities

    

Loans & borrowings

     18,197        16,607   

Deferred tax liabilities

     1,348        2,068   

Deferred income

     29        92   

Other non-current liabilities

     2,349        2,244   
  

 

 

   

 

 

 

Total non-current liabilities

     21,923        21,011   

Current liabilities

    

Loans & borrowings

     4,520        4,482   

Trade payables

     9,413        9,712   

Tax payables

     492        255   

Deferred income

     18,103        16,509   

Other current liabilities

     10,559        9,212   
  

 

 

   

 

 

 

Total current liabilities

     43,087        40,170   
  

 

 

   

 

 

 

Total equity and liabilities

     143,257        144,136   
  

 

 

   

 

 

 


Consolidated cash flow statements (Unaudited)

 

(in thousand euros)    For the six months
ended

30 June
 
     2016     2015  
     euros     euros  

Operating activities

    

Net profit for the period

     (3,587     (3,901

Non-cash and operational adjustments

    

Depreciation of property, plant & equipment

     3,012        2,373   

Amortization of intangible assets

     938        678   

Share-based payment expense

     360        472   

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

     (62     (54

Fair value adjustment contingent liabilities

     54        —    

Movement in provisions and allowance for bad debt

     111        101   

Financial income

     (87     (211

Financial expense

     483        498   

Impact of foreign currencies

     131        (1,153

Share of loss / (profit) of an associate or joint venture (equity method)

     299        123   

Deferred tax expense (income)

     (159     (81

Income taxes

     781        406   

Other

     (40     (4

Working capital adjustments

    

Increase in trade receivables and other receivables

     1,654        (1,943

Decrease (Increase) in inventories

     (5     (879

Increase in trade payables and other payables

     2,442        5,274   

Income tax paid

     (544     (338
  

 

 

   

 

 

 

Net cash flow from operating activities

     5,781        1,361   
  

 

 

   

 

 

 

Investing activities

    

Purchase of property, plant & equipment

     (5,831     (3,558

Purchase of intangible assets

     (526     (674

Proceeds from the sale of property, plant & equipment, net

     708        139   

Proceeds from the sale of intangibles

     19        —    

Acquisition of subsidiary

     —         (1,602

Investments in joint-ventures

     —         (500

Proceeds from held to maturity investments

     —         10,000   

Interest received

     6        7   
  

 

 

   

 

 

 

Net cash flow used in investing activities

     (5,624     3,812   
  

 

 

   

 

 

 

Financing activities

    

Proceeds from loans & borrowings and convertible debt

     2,812        319   

Repayment of loans & borrowings

     (1,346     (3,410

Repayment of finance leases

     (843     (731

Purchase of non-controlling interest

     —         (1,377

Capital increase in parent Company

     —         580   

Interest paid

     (328     (252

Other financial income / (expense)

     (32     14   
  

 

 

   

 

 

 

Net cash flow from financing activities

     263        (4,857
  

 

 

   

 

 

 

Net increase of cash and cash equivalents

     420        316   

Cash and cash equivalents at beginning of period

     50,726        51,019   

Exchange rate differences on cash & cash equivalents

     158        1,364   
  

 

 

   

 

 

 

Cash & cash equivalents at end of period

     51,304        52,699   
  

 

 

   

 

 

 


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

 

     For the three months  
     ended  
(in thousands)    June 30  
     2016      2015  
     euros      euros  

Net profit / (loss)

     (436      (3,013
  

 

 

    

 

 

 

Income taxes

     (639      75   

Financial expenses

     609         1,286   

Financial income

     (816      (348

Share in loss of a joint venture

     131         63   

Depreciation & amortization

     2,040         1506   

EBITDA

     889         (431
  

 

 

    

 

 

 

Non-cash stock-based compensation expenses (1)

     145         252   

Adjusted EBITDA

     1,034         (179

 

(1) Non-cash stock-based compensation expenses represent the cost of equity-settled and cash-settled share-based payments to employees.

Segment P&L (Unaudited)

 

     Materialise     Materialise     Materialise           Adjustments &        
In thousands euros    Software     Medical     Manufacturing     Total segments     eliminations     Consolidated  

For the three month period ended 30 June 2016

            

Revenues

     6,981        9,706        10,907        27,594        3        27,597   

Segment EBITDA

     1,602        14        430        2,046        (1,157     889   

Segment EBITDA %

     22.9     0.1     3.9     7.4       3.2

For the three month period ended 30 June 2015

            

Revenues

     6,078        8,315        10,379        24,772        —         24,772   

Segment EBITDA

     2,015        (342     (147     1,526        (1,957     (431
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment EBITDA %

     33.2     -4.1     -1.4     6.2       -1.7

For the six month period ended 30 June 2016

            

Revenues

     14,412        18,312        21,513        54,237        27        54,264   

Segment EBITDA

     4,367        (516     687        4,538        (2,728     1,810   

Segment EBITDA %

     30.3     -2.8     3.2     8.4       3.3

For the six month period ended 30 June 2015

            

Revenues

     12,194        16,163        19,763        48,120        —         48,120   

Segment EBITDA

     4,230        (1,088     (187     2,955        (3,894     (939
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment EBITDA %

     34.7     -6.7     -0.9     6.1       -2.0

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

 

    

For the three months

ended June 30

 
(in thousands of euros)    2016      2015  

Net profit/(loss)

     (436      (3,013

Income taxes

     (639      75   

Finance costs

     609         1,286   

Finance income

     (816      (348

Share in loss of a joint venture

     131         63   

Operating profit

     (1,151      (1,937

Depreciation & amortization

     2,040         1,506   

Corporate research and development

     392         688   

Corporate headquarters costs

     1,801         2,278   

Other operating income (expense)

     (1,036      (1,009

Segment EBITDA

     2,046         1,526   


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: September 28, 2016

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