voxeljet AG (NYSE: VJET) (the “Company”, or “voxeljet”), a
leading provider of high-speed, large-format 3D printers and
on-demand parts services to industrial and commercial customers,
today announced consolidated financial results for the first
quarter ended March 31, 2019.
Highlights - First Quarter 2019(1)
- Total revenues for the first quarter
increased 10.2% to kEUR 5,565 from kEUR 5,052
- Gross profit margin decreased to 34.4%
from 42.2% to kEUR 1,913 from kEUR 2,133
- Systems revenues increased 75.6% to
kEUR 2,415 from kEUR 1,375
- Services revenues decreased 14.3% to
kEUR 3,150 from kEUR 3,677
- Reaffirm full year 2019 guidance
(1)Certain comparative figures for the 3-month period ended
March 31, 2018 were restated for immaterial errors. For
further information, see Note 9 of the Q3-2018 condensed
consolidated interim financial statements.
Dr. Ingo Ederer, Chief Executive Officer of voxeljet,
commented, “We had a strong first quarter with results that confirm
why we are so excited about our potential to establish a new
manufacturing standard. Just recently, we installed the first print
engine into VJET X: This print engine is the heart of our new
additive mass manufacturing solution and I firmly believe one of
the most advanced piece of technology in the whole additive
manufacturing industry. The shifts we have made to our business and
our deeper focus on the three core areas of innovation, integration
and speed are igniting the next phase of growth and profitability
for voxeljet.”
First Quarter 2019 Results
Revenues for the first quarter of 2019 increased by 10.2% to
kEUR 5,565 compared to kEUR 5,052 in the first quarter of
2018.
Revenues from our Systems segment, which focuses on the
development, production and sale of 3D printers, increased 75.6% to
kEUR 2,415 in the first quarter of 2019 from kEUR 1,375
in last year’s first quarter. The Company delivered two new and one
used and refurbished 3D printer in the first quarter of 2019,
compared to two used and refurbished printers delivered in last
year’s first quarter. Systems revenues also include all
Systems-related revenues from consumables, spare parts and
maintenance. The increase of revenues from our Systems segment was
mainly due to higher revenues from Systems-related revenues, while
revenue from the sale of 3D printers slightly increased. The
increase of Systems-related revenues reflects the higher installed
base of 3D printers in the market and the associated growth in
aftersales activities. Systems revenues represented 43.4% of total
revenues in the first quarter of 2019 compared to 27.2% in last
year’s first quarter.
Revenues from our Services segment, which focuses on the
printing of on-demand parts for our customers, decreased 14.3% to
kEUR 3,150 in the first quarter of 2019 from kEUR 3,677 in the
comparative period of 2018. This was mainly due to lower revenue
contributions from our German operation. We received a lower number
of orders mainly reflecting a lower demand from the automotive
industry. This was partially offset by increased revenue
contributions from our subsidiary voxeljet America Inc. (“voxeljet
America”). The increase in revenue at our American service center
was mainly attributable to a volume contract which we entered into
during the second quarter of 2018.
Cost of sales was kEUR 3,652 for the first quarter of 2019
compared to kEUR 2,919 for the first quarter of 2018.
Gross profit and gross profit margin were kEUR 1,913 and
34.4%, respectively, in the first quarter of 2019 compared to
kEUR 2,133 and 42.2%, respectively in the first quarter of
2018.
Gross profit for our Systems segment increased to kEUR 829
in the first quarter of 2019 from kEUR 381 in the first
quarter of 2018. Gross profit margin for this segment increased to
34.3% in the first quarter of 2019 compared to 27.7% in the first
quarter of 2018. This was mainly due to higher gross profit margin
contributions from Systems-related revenues resulting from a more
favorable ratio of revenues to fixed costs compared to last year’s
first quarter.
Gross profit for our Services segment significantly decreased to
kEUR 1,084 in the first quarter of 2019 compared to kEUR 1,752
in the first quarter of 2018. The gross profit margin for this
segment decreased to 34.4% in the first quarter of 2019 from 47.6%
in the first quarter of 2018. This was mainly related to lower
gross profit margin from the German service center as a result of
lower utilization. Our subsidiary voxeljet America also contributed
lower gross profit margin due to higher depreciation expense, as we
added additional 3D printers to our American service center during
the third quarter of 2018, including one VX4000 system.
Selling expenses remained nearly unchanged at kEUR 1,676
for the first quarter of 2019 compared to kEUR 1,736 in the first
quarter of 2018, despite an increase in revenues. We incurred
higher shipping and packaging expenses, which vary from quarter to
quarter depending on quantity and types of products, as well as the
destinations where those goods are being delivered.
Administrative expenses were kEUR 1,439 for the first
quarter of 2019 compared to kEUR 1,232 in the first quarter of
2018. This was mainly due to an increase in headcount resulting in
higher personnel expenses as part of management’s remediation
efforts on the material weakness identified in the prior year. In
addition, we incurred higher consulting fees as part of our project
to expand our Enterprise Resource Planning (“ERP”) system. We have
hired additional employees in the IT-Team for the management of SAP
ERP system related tasks.
Research and development (“R&D”) expenses increased to
kEUR 1,705 in the first quarter of 2019 from kEUR 1,597
in the first quarter of 2018. The increase of kEUR 108 was
mainly due to higher personnel expenses as a result of a slight
increase in headcount.
Other operating expenses in the first quarter of 2019 were
kEUR 13 compared to kEUR 358 in the prior year period. This
was mainly due to lower losses from foreign currency transaction
for the first quarter of 2019 compared to the first quarter of
2018.
Other operating income was kEUR 978 for the first quarter
of 2019 compared to kEUR 402 in the first quarter of 2018. The
increase was mainly due to higher gains from foreign currency
transactions.
The changes in foreign currency gains and losses were primarily
driven by the valuation of the intercompany loans granted by the
parent company to our UK and US subsidiaries.
Operating loss was kEUR 1,942 in the first quarter of 2019,
compared to an operating loss of kEUR 2,388 in the comparative
period in 2018. The improvement was primarily related to a
significant increase of other operating income partially offset by
a lower gross profit.
Financial result was negative kEUR 858 in the first quarter
of 2019, compared to a financial result of positive
kEUR 678 in the comparative period in 2018. The
significant decrease was mainly driven by the revaluation of the
derivative financial instruments in connection with the European
Investment Bank loan.
Net loss for the first quarter of 2019 was kEUR 2,788 or
EUR 0.57 per share, as compared to net loss of
kEUR 1,716, or EUR 0.46 per share, in the first quarter
of 2018.
Based on a conversion rate of five American Depositary Shares
(“ADSs”) per ordinary share, net loss was at EUR 0.11 per ADS
for the first quarter of 2019, compared to a net loss of
EUR 0.09 per ADS for the first quarter of 2018. Earnings per
share is computed by dividing net income attributable to
stockholders of the parent by the weighted-average number of
ordinary shares outstanding during the periods. Earnings per ADS is
calculated by dividing the above earnings per share by five as each
ordinary share represents five ADSs.
Business Outlook
Our revenue guidance for the second quarter of 2019 is expected
to be in the range of kEUR 5,000 to kEUR 5,250.
We reaffirm our guidance for the full year ending December 31,
2019:
- Full year revenue is expected to be in
the range of kEUR 27,000 to kEUR 30,000
- Gross margin is expected to be above
40%
- Operating expenses for the full year
are expected as follows: selling and administrative expenses are
expected to be in the range of kEUR 12,000 to kEUR 12,500
and R&D expenses are projected to be between approximately
kEUR 5,500 and kEUR 6,000. Depreciation and amortization
expense is expected to be between kEUR 3,750 and
kEUR 4,000.
- Adjusted EBITDA for the second half of
the year ending December 31, 2019 is expected to be
neutral-to-positive. Adjusted EBITDA is defined as net income
(loss), as calculated under IFRS accounting principles before
interest (income) expense, provision (benefit) for income taxes,
depreciation and amortization, and excluding other operating
(income) expense resulting from foreign exchange gains or losses on
the intercompany loans granted to the subsidiaries.
- Capital expenditures are projected to
be in the range of kEUR 2,000 to kEUR 2,500, which
primarily includes ongoing investments in our global
subsidiaries.
Our total backlog of 3D printer orders at March
31, 2019 was kEUR 3,422, which represents six 3D
printers. This compares to a backlog of kEUR 3,392
representing six 3D printers, at December 31, 2018. As production
and delivery of our printers is generally characterized by lead
times ranging between three to nine months, the conversion
rate of order backlog into revenue is dependent on the equipping
process for the respective 3D printer as well as the timing of
customers’ requested deliveries.
At March 31, 2019, we had cash and cash equivalents of
kEUR 8,482 and held kEUR 8,924 of investments in bond
funds and kEUR 1,253 in one note receivable, which are
included in current financial assets on our consolidated statements
of financial position.
Webcast and Conference Call Details
The Company will host a conference call and webcast to review
the results for the first quarter on Friday, May 17, 2019 at 8:30
a.m. Eastern Time. Participants from voxeljet will include its
Chief Executive Officer, Dr. Ingo Ederer, and its Chief Financial
Officer, Rudolf Franz, who will provide a general business update
and respond to investor questions.
Interested parties may access the live audio broadcast by
dialing 1-877-705-6003 in the United States/Canada, or
1-201-493-6725 for international, Conference Title “voxeljet AG
First Quarter 2019 Financial Results Conference Call”. Investors
are requested to access the call at least five minutes before the
scheduled start time in order to complete a brief registration. An
audio replay will be available approximately two hours after the
completion of the call at 1-844-512-2921 or 1-412-317-6671, Replay
Conference ID number 13690018. The recording will be available for
replay through May 24, 2019.
A live webcast of the call will also be available on the
investor relations section of the Company’s website. Please go to
the website
https://event.webcasts.com/starthere.jsp?ei=1241565&tp_key=90fb6173de
at least fifteen minutes prior to the start of the call to
register, download and install any necessary audio software. A
replay will also be available as a webcast on the investor
relations section of the Company’s website.
Non-IFRS Measure
The Company uses Adjusted EBITDA as a supplemental financial
measure of its financial performance. Adjusted EBITDA is defined as
net income (loss), as calculated under IFRS accounting principles,
interest (income) expense, provision (benefit) for income taxes,
depreciation and amortization, and excluding other (income) expense
resulting from foreign exchange gains or losses on the intercompany
loans granted to the subsidiaries. Management believes Adjusted
EBITDA to be an important financial measure because it excludes the
effects of fluctuating foreign exchange gains or losses on the
intercompany loans granted to its subsidiaries. We are unable to
reasonably estimate the potential full-year financial impact of
foreign currency translation because of volatility in foreign
exchange rates. Therefore, we are unable to provide a
reconciliation our forward-looking guidance for non-GAAP Adjusted
EBITDA without unreasonable effort as certain information necessary
to calculate such measure on an IFRS basis is unavailable,
dependent on future events outside of our control and cannot be
predicted without unreasonable efforts by the Company.
Management regularly uses both IFRS and non-IFRS results and
expectations internally to assess its overall performance of the
business, making operating decisions, and forecasting and planning
for future periods. Management believes that Adjusted EBITDA is a
useful financial measure to the Company’s investors as it helps
investors better understand and evaluate the projections our
management board provides. The Company’s calculation of Adjusted
EBITDA may not be comparable to similarly titled financial measures
reported by other peer companies. Adjusted EBITDA should not be
considered as a substitute to financial measures prepared in
accordance with IFRS.
Exchange rate
This press release contains translations of certain U.S. dollar
amounts into euros at specified rates solely for the convenience of
readers. Unless otherwise noted, all translations from U.S. dollars
to euros in this press release were made at a rate of USD 1.1235 to
EUR 1.00, the noon buying rate of the Federal Reserve Bank of New
York for the euro on March 31, 2019.
About voxeljet
voxeljet is a leading provider of high-speed, large-format 3D
printers and on-demand parts services to industrial and commercial
customers. The Company’s 3D printers employ a powder binding,
additive manufacturing technology to produce parts using various
material sets, which consist of particulate materials and
proprietary chemical binding agents. The Company provides its 3D
printers and on-demand parts services to industrial and commercial
customers serving the automotive, aerospace, film and
entertainment, art and architecture, engineering and consumer
product end markets. For more information, visit
http://www.voxeljet.de/en/.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements
concerning our business, operations and financial performance. Any
statements that are not of historical facts may be deemed to be
forward-looking statements. You can identify these forward-looking
statements by words such as ‘‘believes,’’ ‘‘estimates,’’
‘‘anticipates,’’ ‘‘expects,’’ ‘‘projects,’’ ‘‘plans,’’ ‘‘intends,’’
‘‘may,’’ ‘‘could,’’ ‘‘might,’’ ‘‘will,’’ ‘‘should,’’ ‘‘aims,’’ or
other similar expressions that convey uncertainty of future events
or outcomes. Forward-looking statements include statements
regarding our intentions, beliefs, assumptions, projections,
outlook, analyses or current expectations concerning, among other
things, our results of operations, financial condition, business
outlook, the industry in which we operate and the trends that may
affect the industry or us. Although we believe that we have a
reasonable basis for each forward-looking statement contained in
this press release, we caution you that forward-looking statements
are not guarantees of future performance. All of our
forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that are in some cases beyond our
control and that may cause our actual results to differ materially
from our expectations, including those risks identified under the
caption “Risk Factors” in the Company’s Annual Report on
Form 20-F and in other reports the Company files with the U.S.
Securities and Exchange Commission, as well as the risk that our
revenues may fall short of the guidance we have provided in this
press release. Except as required by law, the Company undertakes no
obligation to publicly update any forward-looking statements for
any reason after the date of this press release whether as a result
of new information, future events or otherwise.
CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
Notes 3/31/2019
12/31/2018 (1) (€ in thousands)
unaudited Current assets 36,519 37,936
Cash and cash equivalents 7 8,482 7,402 Financial assets 7 10,177
12,905 Trade receivables, net 4,857 6,030 Inventories 4 11,156
10,064 Income tax receivables 37 13 Other assets 1,810 1,522
Non-current assets 35,371 31,416 Financial
assets 7 1,632 2,234 Intangible assets 1,404 1,420 Property, plant
and equipment, net 2, 5 32,255 27,675 Investments in joint venture
32 33 Other assets 48 54
Total assets
71,890 69,352 Notes
3/31/2019 12/31/2018 (1) Current
liabilities 6,732 6,302 Trade payables 7 2,507
2,945 Contract liabilities 7 1,027 817 Financial liabilities 2, 7
1,377 850 Other liabilities and provisions 6 1,821 1,690
Non-current liabilities 20,780 16,575 Deferred
tax liabilities 63 76 Financial liabilities 2, 7 20,539 16,321
Other liabilities and provisions 6 178 178
Equity
44,378 46,475 Subscribed capital 4,836 4,836 Capital
reserves 87,572 86,803 Accumulated deficit (49,184) (46,400)
Accumulated other comprehensive income 907 1,201
Equity
attributable to the owners of the company 44,131
46,440 Non-controlling interest 247 35
Total equity and liabilities 71,890 69,352
See accompanying notes to unaudited condensed
consolidated interim financial statements.
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the
cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further
information, see Note 2 of the condensed consolidated interim
financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS (UNAUDITED)
Three months ended March 31,
Notes 2019 2018 (1) (2) (€ in
thousands except share and share data) Revenues 9, 10 5,565
5,052 Cost of sales (3,652) (2,919)
Gross profit 9
1,913 2,133 Selling expenses (1,676) (1,736)
Administrative expenses (1,439) (1,232) Research and development
expenses (1,705) (1,597) Other operating expenses (13) (358) Other
operating income 978 402
Operating loss (1,942)
(2,388) Finance expense 8 (917) (268) Finance income 8 59
946
Financial result 8 (858) 678
Loss before income taxes (2,800) (1,710)
Income taxes 12 (6)
Net loss (2,788) (1,716)
Debt investment at FVOCI - net change in fair value 106 (15)
Foreign currency translation differences (400) (64)
Other
comprehensive income (294) (79)
Total comprehensive loss
(3,082) (1,795) Loss attributable to:
Owners of the Company (2,784) (1,710) Non-controlling interests (4)
(6)
(2,788) (1,716) Total comprehensive
loss attributable to: Owners of the Company (3,078) (1,789)
Non-controlling interests (4) (6)
(3,082) (1,795)
Weighted average number of ordinary shares outstanding
4,836,000 3,720,000 Loss per share - basic/ diluted (EUR) (0.58)
(0.46)
See accompanying notes to unaudited condensed
consolidated interim financial statements.
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the
cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further
information, see Note 2 of the condensed consolidated interim
financial statements.
(2)Certain comparative figures for the 3-month period ended
March 31, 2018 were restated for immaterial errors. For
further information, see Note 9 of the Q3-2018 condensed
consolidated interim financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
IN EQUITY (UNAUDITED)
Attributable to
the owners of the company Accumulated other
Subscribed Capital Accumulated
comprehensive Non-controlling (€ in thousands)
capital reserves deficit gain (loss)
Total interests Total equity Balance at
December 31, 2017 (2) 3,720 76,227
(37,480) 1,380 43,847 71 43,918
Adjustment on initial application of IFRS 15 --
-- (100) -- (100) --
(100) Adjustment on initial application of IFRS 9
-- -- (63) -- (63) --
(63) Adjusted balance at January 1, 2018 (2)
3,720 76,227 (37,643) 1,380
43,684 71 43,755 Loss for the period -- --
(1,710) --
(1,710) (6)
(1,716) Net changes in fair
value of debt investments at FVOCI -- -- -- (15)
(15) --
(15) Foreign currency translations -- -- -- (64)
(64)
--
(64) Equity-settled share-based payment -- 129 -- --
129 --
129 Balance at March 31, 2018
(2) 3,720 76,356 (39,353) 1,301
42,024 65 42,089
Attributable to the owners of the
company Accumulated other Subscribed
Capital Accumulated comprehensive
Non-controlling (€ in thousands) capital
reserves deficit gain (loss) Total
interests Total equity Balance at December 31,
2018 (1) 4,836 86,803 (46,400)
1,201 46,440 35 46,475 Loss for the
period -- -- (2,784) --
(2,784) (4)
(2,788) Net
changes in fair value of debt investments at FVOCI -- -- -- 106
106 --
106 Foreign currency translations -- -- --
(400)
(400) --
(400) Equity-settled share-based
payment -- 165 -- --
165 --
165 Share-based payment
transaction with the non-controlling shareholder of a subsidiary --
604 -- --
604 216
820 Balance at March 31,
2019 4,836 87,572 (49,184) 907
44,131 247 44,378
See accompanying notes to unaudited condensed
consolidated interim financial statements.
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the
cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further
information, see Note 2 of the condensed consolidated interim
financial statements.
(2)Certain comparative figures for the 3-month period ended
March 31, 2018 were restated for immaterial errors. For
further information, see Note 9 of the Q3-2018 condensed
consolidated interim financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)
Three months ended March 31, 2019
2018 (1) (2) (€ in thousands) Cash Flow
from operating activities Loss for the period
(2,788) (1,716) Depreciation and amortization
1,050 841 Foreign currency exchange differences on loans to
subsidiaries (769) (61) Share-based compensation expense 165 129
Change in impairment of trade receivables (28) 10 Non-cash interest
expense on long-term debt 205 189 Change in fair value of
derivative equity forward 602 (941) Change in inventory allowance
(9) (226) Other -- 9
Change in working capital
(265) 1,578 Trade and other receivables, inventories
and current assets 61 (901) Trade payables (586) (260) Other
liabilities, contract liabilities and provisions 284 2,739 Income
tax payable/receivables (24) --
Net cash used in operating
activities (1,837) (188) Cash Flow from
investing activities Payments to acquire property, plant
and equipment and intangible assets (173) (234) Proceeds from
disposal of financial assets 4,081 2,526 Payments to acquire
financial assets (1,235) (6,170) Proceeds from disposal of
property, plant and equipment 22 --
Net cash from (used in)
investing activities 2,695 (3,878) Cash
Flow from financing activities Repayment of bank
overdrafts and lines of credit -- (58) Repayment of sale and
leaseback obligation -- (118) Repayment of lease liabilities (2018:
Repayment of finance lease obligations) (77) (12) Repayment of
long-term debt (250) (197) Proceeds from issuance of long-term debt
500 40
Net cash from (used in) financing activities
173 (345) Net increase (decrease) in cash
and cash equivalents 1,031 (4,411) Cash
and cash equivalents at beginning of period 7,402
7,569 Changes to cash and cash equivalents due to foreign
exchanges rates 49 (18)
Cash and cash equivalents at end of
period 8,482 3,140 Supplemental Cash
Flow Information Interest paid 66 47 Interest received 43 1
See accompanying notes to unaudited condensed
consolidated interim financial statements.
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the
cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further
information, see Note 2 of the condensed consolidated interim
financial statements.
(2)Certain comparative figures for the 3-month period ended
March 31, 2018 were restated for immaterial errors. For
further information, see Note 9 of the Q3-2018 condensed
consolidated interim financial statements.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
1. Preparation of financial statements
Our condensed consolidated interim financial statements include
the accounts of voxeljet AG, which is listed on the New York Stock
Exchange, and its wholly-owned subsidiaries voxeljet America Inc.,
voxeljet UK Ltd. and voxeljet India Pvt. Ltd., as well as voxeljet
China Co. Ltd., which are collectively referred to herein as the
‘Group’ or the ‘Company.’
Our condensed consolidated interim financial statements were
prepared in compliance with all applicable measurement and
presentation rules contained in International Financial
Reporting Standards (‘IFRS’) as set forth by the International
Accounting Standards Board (‘IASB’) and Interpretations of the IFRS
Interpretations Committee (‘IFRIC’). The designation IFRS also
includes all valid International Accounting Standards (‘IAS’); and
the designation IFRIC also includes all valid interpretations of
the Standing Interpretations Committee (‘SIC’). Specifically, these
financial statements were prepared in accordance with the
disclosure requirements and the measurement principles for interim
financial reporting purposes specified by IAS 34.
The IASB issued a number of new IFRS standards which are
required to be adopted in annual periods beginning after January 1,
2019.
Standard Effective date
Descriptions Others 01/2020 Amendments References to the
Conceptual Framework in IFRS Standards 3 IFRS 3 01/2020 Amendment
Definition of a business IAS 1, IAS 8 01/2020 Amendment, Amendment
Definition of material IFRS 17 01/2021 Insurance Contracts IFRS 10,
IAS 28 indefinite Amendment Sale or Contribution of Assets between
Investor and its Associate or Joint Venture
The Company has not yet conclusively determined what impact the
new standards, amendments or interpretations will have on its
financial statements, but does not expect a significant impact.
The condensed consolidated interim financial statements as of
and for the three months ended March 31, 2019 and 2018 were
authorized for issue by the Management Board on May 16,
2019.
2. Summary of significant accounting policies
Except as described below, the accounting policies applied in
these condensed consolidated interim financial statements are the
same as those applied in the Company’s consolidated financial
statements as of and for the year ended December 31, 2018, which
can be found in its Annual Report on Form 20-F that was filed
with the U.S. Securities and Exchange Commission on March
28, 2019. The changes in accounting policies are also expected
to be reflected in the Company’s consolidated financial statements
as of and for the year ending December 31, 2019.
The Group has initially adopted IFRS 16 Leases from January 1,
2019. A number of other new standards are effective from January 1,
2019 but these do not have a material effect on the Company’s
consolidated financial statements.
IFRS 16 introduced a single, on-balance sheet accounting model
for lessees. As a result, the Group, as a lessee, has recognized
right-of-use assets representing its rights to use the underlying
assets and lease liabilities representing its obligation to make
lease payments. Lessor accounting remains similar to previous
accounting policies.
The Group has applied IFRS 16 using the modified retrospective
approach, under which the cumulative effect of initial application
is recognized in retained earnings as of January 1, 2019.
Accordingly, the comparative information presented for 2018 has not
been restated and is therefore presented as previously reported,
under IAS 17 and related interpretations. The details of changes in
accounting are disclosed below.
Definition of a lease
Previously, the Company determined at contract inception whether
an arrangement was or contained a lease under IFRIC 4
Determining Whether an Arrangement contains a Lease. The Company
now assesses whether a contract is or contains a lease based on the
new definition of a lease. Under IFRS 16, a contract is, or
contains, a lease if the contract conveys a right to control the
use of an identified asset for a period of time in exchange for
consideration.
On transition to IFRS 16, the Company elected to apply the
practical expedient to grandfather the assessment of which
transactions are leases. It applies IFRS 16 only to contracts
that were previously identified as leases. Contracts that were not
identified as leases under IAS 17 and IFRIC 4 were not
reassessed. Therefore, the definition of a lease under IFRS 16
has been applied only to contracts entered into or changed on or
after January 1, 2019.
At inception or on reassessment of a contract that contains a
lease component, the Company allocates the consideration in the
contract to each lease and non-lease component on the basis of
their relative stand-alone prices.
The Company as a lessee
The Company leases assets, including properties, production
equipment and vehicles. As a lessee, the Company previously
classified leases as operating or finance leases based on its
assessment of whether the lease transferred substantially all of
the risks and rewards of ownership. Under IFRS 16, the Company
recognizes right-of-use assets and lease liabilities for most
leases. These leases are on-balance sheet.
However, the Company has elected not to recognize right-of-use
assets and lease liabilities for some leases of low-value assets
(e.g. tools) as well as short-term leases (leases with less than 12
months of lease term). The Company recognizes the lease payments
associated with these leases as an expense on a straight-line basis
over the lease term.
The Company presents right-of-use assets in “property, plant and
equipment”, in the same line item as it presents underlying assets
of the same nature that it owns. The carrying amounts of
right-of-use assets are as below:
Property, plant and equipment
Property Production equipment
Others Total (€ in thousands) Balance
at January 1, 2019 3,134 112 280
3,526 Balance at March 31,
2019 4,759 104 277
5,140
The Company presents lease liabilities within “financial
liabilities” in the condensed consolidated statements of financial
position.
Leases under IFRS 16
The Company recognizes a right-of-use asset and a lease
liability at the lease commencement date. The right-of-use asset is
initially measured at an amount equal to the lease liability, and
subsequently at cost less any accumulated depreciation and
impairment losses, and adjusted for certain remeasurements of the
lease liability.
The lease liability is initially measured at the present value
of the lease payments that are not paid at the commencement date,
discounted using the Company’s incremental borrowing rate.
The lease liability is subsequently increased by the interest
cost on the lease liability and decreased by lease payments made.
It is remeasured when there is a change in the future lease
payments arising from a change in an index or rate, a change in the
estimate of the amount expected to be payable under a residual
value guarantee, or as appropriate, changes in the assessment of
whether a purchase or extension option is reasonable certain not to
be exercised.
The Company has applied judgement to determine the lease term
for some lease contracts in which it is a lessee that include
renewal options. The assessment of whether the Company is
reasonably certain to exercise such options impacts the lease term,
which significantly affects the amount of lease liabilities and
right-of-use assets recognized.
Transition
Previously, the Company classified property plant and equipment
leases as operating leases under IAS 17. These include
manufacturing facilities. The leases typically run for a period of
three to ten years. Some leases include an option to renew the
lease for an additional three to five years after the end of the
non-cancelable period.
At transition, for leases classified as operating leases under
IAS 17, lease liabilities were measured at the present value
of the remaining lease payments, discounted at the Company’s
incremental borrowing rates for similar assets as of
January 1, 2019. Right-of-use assets are measured at an
amount equal to the lease liability, adjusted by the amount of any
prepaid or accrued lease payments.
The Company used the following practical expedients when
applying IFRS 16 to leases previously classified as operating
leases under IAS 17:
- Applied a single discount rate to a
portfolio of leases with reasonably similar characteristics.
- Applied the exemption not to recognize
right-of-use assets and liabilities for leases with less than 12
months of lease term.
- Used hindsight when determining the
lease term if the contract contains options to extend or terminate
the lease.
The Company leases a small number of items of production
equipment. These leases were classified as finance leases under
IAS 17. For these finance leases, the carrying amount of the
right-of-use asset and the lease liability at January 1, 2019 were
determined at the carrying amount of the lease asset and lease
liability under IAS 17 immediately before that date.
The Company as a lessor
The Company leases out a small number of 3D printers. Those
leases have been classified as operating leases.
The accounting policies applicable to the Company as a lessor
are not different from those under IAS 17.
The Company is not required to make any adjustments on
transition to IFRS 16 for leases in which it acts as a
lessor.
Impacts on financial statements
Impacts on transition
On transition to IFRS 16, the Company recognized additional
right-of-use assets, including property, plant and equipment and
additional lease liabilities. The impact on transition is
summarized below.
Impact on adopting IFRS 16 at January 1,
2019 (€ in thousands) Right-of-use assets presented in
property plant and equipment 3,526 Lease liabilities as presented
in financial liabilities 3,526
When measuring lease liabilities for leases that were classified
as operating lease, the Company discounted lease payments using its
incremental borrowing rates as of January 1, 2019. The
weighted-average rate applied is 4.55%.
January 1, 2019 (€ in thousands)
Operating lease commitment at December 31, 2018, as disclosed in
the Group's consolidated financial statements 2,584 Discounted
using the incremental borrowing rate at January 1, 2019 1,973
Finance lease liability recognized as at December 31, 2018 105
Recognition exemption for leases with less than 12 months of lease
term at transition (84) Extension options reasonably certain to be
exercised 1,532 Lease liabilities recognized at January 1,
2019 3,526
Impacts for the period
As a result of initially applying IFRS 16, in relation to
the leases that were previously classified as operating leases, the
Company recognized kEUR 5,140 of right-of-use assets and
kEUR 4,348 of lease liabilities as of
March 31, 2019.
Also in relation to those leases under IFRS 16, the Company
has recognized depreciation and interest costs, instead of
operating lease expenses. During the three-months ended
March 31, 2019, the Company recognized kEUR 155 of
depreciation expenses and kEUR 43 of interest expense from
these leases.
3. Share based payment arrangements
On April 7, 2017, voxeljet AG established a share option plan
that entitles key management personnel and senior employees of
voxeljet AG and its subsidiaries to purchase shares of the parent
company.
Total options available under the share option plan are 372,000.
279,000 options (75%, Tranche 1) were granted on April 7,
2017. 93,000 options (25%, Tranche 2) were granted on April
12, 2018.
The vesting conditions include a service condition (the options
vest after a period of four years of continued service from the
respective grant date) and a market condition (the options may only
be exercised if the share price exceeds the exercise price over a
period of 90 consecutive days by at least 20% in the period between
the grant date and the respective exercise time frame) of which
both conditions must be met.
The fair value of the employee share option plan has been
measured for Tranches 1 and 2 using a Monte Carlo simulation.
The market condition has been incorporated into the fair value at
grant date.
The inputs used in the measurement of the fair value at grant
date are as follows:
Tranche 1 Tranche 2 Parameter
Share price at grant date USD 13.80 USD 16.15 Exercise price USD
13.90 USD 16.15 Expected volatility 55.00% 58.40% Expected
dividends
-- -- Risk-free interest rate 2.49% 2.85%
Fair value at grant date USD 8.00 USD 9.74
The respective expected volatility has been based on an
evaluation of the historical volatility of the Company’s share
price as at the grant date. As at March 31, 2019 no options are
exercisable and 353,400 options are outstanding. The
weighted-average contractual life of the options at March 31, 2019
amounts to 8.3 years (March 31, 2018: 9.0 years).
The expenses recognized in the profit and loss statement in
relation to the share-based payment arrangements amounted to
kEUR 165 in the three months ended March 31, 2019 (three
months ended March 31, 2018: kEUR 129).
On March 1, 2019, voxeljet China moved into a new facility. The
minority shareholder of voxeljet China has increased its
shareholding in the entity from 4.175% to 30% through an in-kind
capital contribution of a lease contract on the new facility. The
lease term under IFRS 16 of the contract is six years, including a
rent-free period during the first three years. The transaction is
accounted for as a share-based payment transaction under IFRS 2 and
resulted in an increase of non-controlling interest of kEUR 216 and
capital reserves of kEUR 604. The Company also recorded a
right-of-use asset and the corresponding lease liability on the
commencement date of the lease.
4. Inventories
3/31/2019 12/31/2018 (€ in
thousands) Raw materials and merchandise 4,218 4,628 Work in
progress 6,938 5,436
Total 11,156 10,064
5. Property, plant and equipment, net
3/31/2019 12/31/2018 (1) (€
in thousands) Land, buildings and leasehold improvements 21,772
17,085 Plant and machinery (2018: includes assets under finance
lease) 8,713 9,072 Other facilities, factory and office equipment
1,742 1,502 Assets under construction and prepayments made 28 16
Total 32,255 27,675 Thereof pledged assets of
Property, Plant and Equipment 7,015 6,691
Leased assets included
in Property, Plant and Equipment: 189 357
Printers leased to customers under operating lease 189 208 Other
factory equipment -- 149
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the
cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further
information, see Note 2 of the condensed consolidated interim
financial statements.
6. Other liabilities and provisions
3/31/2019 12/31/2018 (€ in
thousands) Liabilities from VAT 97 24 Employee bonus 382 413
Accruals for vacation and overtime 398 210 Accruals for licenses 40
69 Liabilities from payroll 314 298 Accruals for commissions 37 47
Accruals for compensation of Supervisory board 225 180 Accrual for
warranty 184 240 Others 322 387
Total 1,999
1,868
7. Financial instruments
The following table shows the carrying amounts and fair values
of financial assets and financial liabilities, including their
levels in the fair value hierarchy. In addition, for the current
year the fair value disclosure of lease liabilities is not
required.
Carrying amount Fair Value Assets at
Liabilities Total FVTPL FVOCI
amortized at amortized carrying
3/31/2019 cost cost
amount Level 1 Level 2 Level 3
Total Financial assets measured at fair value
Non-current assets Derivative financial instruments
1,627 -- -- -- 1,627 -- 1,627 -- 1,627 Equity securities -- 5 -- --
5 -- -- 5 5
Current assets Bond funds -- 8,924
-- -- 8,924 8,924 -- -- 8,924 Note receivable -- 1,253 -- -- 1,253
1,253 -- -- 1,253
Financial assets not measured at fair
value Current assets Cash and cash equivalents --
-- 8,482 -- 8,482 8,482 -- 8,482 Trade and other receivables -- --
4,857 -- 4,857 -- -- -- --
Financial liabilities not
measured at fair value Non-current liabilities
Long-term debt -- -- -- 16,652 16,652 -- 15,641 -- 15,641
Current liabilities Long-term debt -- -- -- 916 916 --
908 -- 908 Trade payables -- -- -- 2,507 2,507 -- -- -- --
Carrying
amount Fair Value Assets at Liabilities
Total FVTPL FVOCI amortized at
amortized carrying 12/31/2018
cost cost amount Level 1 Level 2
Level 3 Total Financial assets measured at fair
value Non-current assets Derivative financial
instruments 2,229 -- -- -- 2,229 -- 2,229 -- 2,229 Equity
securities -- 5 -- -- 5 -- -- 5 5
Current
assets Bond funds -- 12,905 -- -- 12,905 12,905 -- -- 12,905
Financial assets not measured at fair value
Current assets Cash and cash equivalents -- -- 7,402
-- 7,402 7,402 -- 7,402 Trade and other receivables -- -- 6,030 --
6,030 -- -- -- --
Financial liabilities not measured at
fair value Non-current liabilities Long-term debt
-- -- -- 16,250 16,250 -- 15,231 -- 15,231 Finance lease obligation
-- -- -- 71 71 -- 69 -- 69
Current liabilities
Long-term debt -- -- -- 816 816 -- 809 -- 809 Finance lease
obligation -- -- -- 34 34 -- 34 -- 34 Trade payables -- -- -- 2,945
2,945 -- -- -- --
The fair value of the Company’s investments in the bond funds
and note receivable was determined based on the unit prices quoted
by the fund management company.
The fair value of long-term debt was determined using discounted
cash flow models based on the relevant forward interest rate yield
curves.
Due to their short maturity and the current low level of
interest rates, the carrying amounts of credit lines and bank
overdrafts approximate fair value.
8. Financial result
Quarter Ended March 31, 2019
2018 (1) (€ in thousands) Interest
expense (917) (268) Interest expense on
lease liability (2018: Finance lease obligations) (43) (36)
Long-term debt (242) (232) Expense from revaluation of derivative
financial instruments (602) -- Other (30) --
Interest
income 59 946 Payout of bond funds 54 5
Income from revaluation of derivative financial instruments -- 941
Other 5 --
Financial result (858)
678
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the
cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further
information, see Note 2 of the condensed consolidated interim
financial statements.
9. Segment reporting
The following table summarizes segment reporting. The sum of the
amounts of the two segments equals the total for the Group in each
of the periods.
Three months ended March 31, 2019 2018
(1) (2) (€ in thousands) SYSTEMS
SERVICES SYSTEMS SERVICES Revenues 2,415 3,150
1,375 3,677 Gross profit 829 1,084 381 1,752 Gross profit in
% 34.3 % 34.4 % 27.7 % 47.6 %
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the
cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further
information, see Note 2 of the condensed consolidated interim
financial statements.
(2)Certain comparative figures for the 3-month period ended
March 31, 2018 were restated for immaterial errors. For
further information, see Note 9 of the Q3-2018 condensed
consolidated interim financial statements.
10. Revenues
Three months ended March 31,
SYSTEMS SERVICES 2019 2018 2019
2018 (€ in thousands) Primary geographical
markets EMEA 928 712 1,822 2,420 Asia Pacific 613 551 218 216
Americas 874 112 1,110 1,041 2,415 1,375 3,150 3,677
Timing of revenue recognition Products transferred at a
point in time 2,193 1,267 3,150 3,677 Products and services
transferred over time 222 108 -- -- Revenue from contracts with
customers 2,415 1,375 3,150 3,677
Three months
ended March 31, 2019 2018 (€ in thousands)
EMEA 2,750 3,132 Germany 1,351 1,517 France
373 589 Great Britain 450 274 Others 576 752
Asia Pacific
831 767 India 243 318 Others 588 449
Americas
1,984 1,153 United States 1,948 1,139 Others 36 14
Total 5,565 5,052
11. Commitments, contingent assets and liabilities
In March 2018, ExOne GmbH, a subsidiary of ExOne, notified
voxeljet of its intent not to pay its annual license fees under an
existing intellectual property-related agreement and asserted its
rights to claim damages pursuant to an alleged material breach of
the agreement. At this time, the Company cannot reasonably estimate
a contingency, if any, related to this matter.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190516005944/en/
Investors and MediaJohannes PeschDirector Investor
Relations and Business Developmentjohannes.pesch@voxeljet.deOffice:
+49 821 7483172Mobile: +49 176 45398316
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