Nano Dimension Ltd. (Nasdaq: NNDM, “Nano
Dimension” or the “Company”), a leading supplier of Additively
Manufactured Electronics (“AME”) and multi-dimensional polymer,
metal & ceramic Additive Manufacturing (“AM”), today announced
financial results for the fourth quarter and full year ended
December 31st, 2023.
Revenue
-
Q4/2023: $14.5 million, up
19% compared to Q4/ 2022
- FY
2023: $56.3 million, up 29% compared
to FY 2022
Gross Margin (“GM”)
- FY 2023: 45%; up 41% from 32% in FY
2022
Adjusted1
Gross Margin (“Adjusted GM”)
- FY 2023: 48%; vs. 46% in FY
2022
Net Cash Burn² down 42% from 2022 to
2023:
- FY 2022: $146 million
- FY 2023: $84 million
- FY 2024: $12-20 million EXPECTED,
as a result of Q4/22 Reshaping Nano Initiative (the
“Initiative”)
Details regarding Adjusted EBITDA and adjusted
gross margin can be found below in this press release under
“Non-IFRS Measures.”
CEO MESSAGE TO SHAREHOLDERS:
We would like to update you - our shareholders
and prospective shareholders - with additional perspective on our
continued record performance, organizational changes, and an
outlook on exciting times to come.
To start with – we want to emphasize that in
contrast to many hi-tech corporations’ reporting results,
especially industries like AM / 3D printing where no public company
is profitable and most are shrinking in revenues – we relate to
this document as well as to our “results” conference
calls, as their name indicates: Update on
Financial Results, with minimal “cosmetics” such
as pictures and graphics of exciting products and the machines that
manufacture them. Most of those can be found on our website:
www.nano-di.com, which all of you are invited to visit and see.
Nano Dimension has a breadth of technologies and products
assortment, yet narrow and focused span of synergistic vertical
markets. Both of those characteristics are critical to our success
and major differentiators from many other AM/3D Printing
players.
“Reshaping Nano” Beyond Revenue and
Gross Margin
After much focus on revenue over the last 2-4
years, the market is returning to some element of reasonableness in
the realigning of attention around the bottom-line. In this spirit,
the Initiative was launched in mid-Q4/2023 and is critical as we
reorient our financial objectives. It is specifically designed to
enable Nano Dimension to become operating income positive in 2025,
and potentially cash flow positive earlier. We have thought and
will continue to think highly critically about our operating
expenses across R&D, sales & marketing, and general &
administrative costs. We made some notable changes in Q4/2023,
including reducing the Company’s workforce worldwide by
approximately 25% and shrinking the Executive Management group by
25%.
This Initiative has produced an estimated
annualized savings of $30 million, which we expect to start
reflecting in our Q1/2024 results.
It is important to note that while we are not
yet delivering a positive bottom-line now, it is a choice based on
our capital allocation to secure R&D innovation and establish
go-to-market channels and customer relationships. We are
positioning ourselves with a sharp focus on gross margin. It grew
to 45%. This improvement indicates our clear direction toward a
goal of over 50% gross margin, preferably close to 60%. At that
level, we expect to be profitable. From there onward, we expect to
see savings in operating expenses.
Customer and R&D Successes
In 2023, we saw numerous customer success
stories. These are evident in new relationships with customers such
as:
- Sales to NASA,
- Repeat sales to the Fraunhofer
Institute,
- Sales to one of the world’s largest
computer hardware companies,
- Sales to Western Armies,
- Sales to Western Secret
Services,
- Sales to other defense
establishments,
- Multi-system sale that resulted in
our largest single order ever.
Moreover, we are seeing these customer success
stories across our product portfolio – from our systems for AME to
micro-AM to AE robotics.
We are hearing from our customers more
frequently with excitement relating to our deep
learning-based AI capabilities. This is especially on the
back of our announced efforts to develop our industrial AI solution
from our DeepCube Group, which was originally developed for our
proprietary manufacturing systems, but is now ramping up as a
separate offering for third-party customers in their own, non-AM
industrial systems. As part of this, several patents were granted,
or applications filed.
Comparable to the importance of our AI work are
our breakthroughs in material science, specifically relating to our
INSU™ 200 dielectric material for AME, which was
announced in the end of 2023 and a patent application has been
filed in 2024. This material is critical for use to AME as it
enables the printed PCB to go through critical processes that
ultimately improve its thermo-mechanical properties. This, in
effect, opens tremendous new business opportunities.
The Financial Engine Continues to
Run
More than ever, we are shaping our decisions
around the aforementioned bottom-line, but top-line is critical to
enable success. Fortunately, Nano Dimension finished 2023 with
another record year. This was on the back of a strong Q4/2023, and
in fact, all quarters for the year have reached records within
themselves compared to previous years. And not by small margins. As
an example, Q4/2023’s $14.5 million in revenue was 19%
higher than the same period in the year before.
Importantly, this revenue growth is entirely organic. This is proof
of our ability to acquire, integrate, and achieve synergies. The
overly used yet highly indicative adage of “1 + 1 = 3”.
Stewards Responsible to
Shareholders
2023 was a year in which we had constant
engagement with shareholders, especially leading up to our Annual
General Meeting which occurred on September 7th, 2023. Nano
Dimension’s slate and existing stewards received the support needed
from thousands of shareholders to continue to operate as directors
for the Company.
Even with that continued mandate, we made
proactive changes to our Board of Directors. Firstly, we separated
the Chairman and CEO function with me stepping down as Chairman,
while continuing to serve as a director. The Company and its
shareholders should be enthralled to have Dr. Yoav Nissan-Cohen as
Chairman. Dr. Nissan-Cohen brings many years of advanced technology
innovation and corporate leadership, including as CEO of Tower
Semiconductor for over ten years.
Secondly, we are honored to have a new voice on
the board with 4-Star General Michael X. Garrett (Ret.), who was
most recently the Commanding General of the United States Army
Forces Command (“FORSCOM”). Two directors stepped down as part of
this refresh.
The Capital is Yours
Since raising $1.5 billion in capital in 2021 we
have consistently operated under the belief that this capital was
given to us by our shareholders for a few years to create added
substantial value. On this basis, we have constantly sought to
allocate this capital in the best way to deliver a short-, medium-
and long-term return on investment (“ROI”).
We have most often spoken about capital
allocation through two channels. The first is organic investment,
namely R&D and go-to-market. The second is inorganic,
specifically mergers & acquisitions (“M&A”). But there is a
third option: return capital to shareholders, while improving
Nano’s enterprise value. We have done just that to a notable extent
with a share buyback program, for approximately $96 million in
2023. Furthermore, we currently have another $200 million
repurchase plan approved and underway.
Time for CONSOLIDATION
M&A has long been part of our strategy as
evident by our seven acquisitions since April 2021. But more than
being acquirors, we have been prudent buyers – unwilling to pay
unreasonable valuations. Why? We believe you don’t make money when
you sell, you make money when you buy. In other words, the
acquisition price must be right.
In another deviation from the financial reports
of all AM industry public companies – we do not see systemic
reduced demands for our products. What we do
identify are too many AM companies without the gross
margins that fit the required R&D, machine building, and
marketing budgets. The systemic lack of profitability is a result
of overcrowded domain which was over-financed and over-valued by
the 2021 SPAC-and-micro-cap-markets-and-small-AM-companies-MANIA.
None of them are selling in a synergistic manner, none of them have
focused on solving well defined and large yet coherent applications
domains and vertical markets. The results are companies that sell,
by a single corporation as an example, to the following markets:
dental, defense, aerospace, medical body parts, medical
instruments, consumer product and more. And those are pretty much
all the companies that are large enough in AM and all burning cash
annually while being left with ever shrinking reserves.
The solution for zero profits of the more than
dozens of AM companies over the last few years is only one:
consolidation. This general realignment will in turn increase our
competitive advantage, increase gross margins, and focus on
synergetic business lines rather than “We sell everything to
everyone as long as it is 3D printing machine and/or material.”
The market is prime for
consolidation, and we are positioned to be one of
its main leaders.
It isn’t just about
acquisitions because we have the capital, but also
at compelling valuations that will drive an ROI for our
shareholders, and proper merger and amalgamation
of the management teams and rationalizing the product lines and
go-to-market networks.
There are many great, albeit imperfect,
companies in the AM industry. Great in that they have cutting edge
technologies and meaningful customer relationships with our own
customers and industry verticals. Imperfect in that for any number
of reasons they have, poor business models that drive high costs,
which have consumed the lion’s share of the capital that many of
them raised. This is a unique and tremendous opportunity for Nano
Dimension and its shareholders.
With close to $56.3 million of revenue, Nano
Dimension is the fastest growing of the cohort of publicly traded
AM / 3D printing companies (approximately 10-12). Contrary to
reports by all other 3D printing public companies, and
inconsistently with the reduction in the revenues of all during
2023, we do not feel “Industry headwinds”. This is not even one
“industry”; medical equipment, defense, organic parts, prosthetics,
3D food printing, aerospace, aviation, energy, automotive, dental –
are not “AM Industries” and do not necessarily see supposed
headwinds together. Just as an example, the defense, aerospace and
dental and electric/electronic transportation, as much as we know,
did not have slowdowns in 2023.
Bottom line: Nano is the only company that grew,
and substantially so; this year 29% organically vs. 2022 when we
generated $43.7 million in revenue. And we are not shy to say that
we were short from our original goal of $60 million. It is
not because of headwinds; it is because we
performed to an extend of 95% of our 2023 revenue goal.
We aim for go-to-market led
consolidation AM/3D Printing and materials companies. This is the
only way to accelerate toward profitability as fast as possible. If
we can complete this M&A strategy as soon as we can at
reasonable prices, we shall see a Nano Dimension that is well in
the hundreds of millions of revenue and in a position to deliver to
the bottom-line magnitudes more with greater scale and efficacy as
practically the one of very few AM companies that is not only well
managed and innovative, but also properly financed and positioned
to deliver value to shareholders.
Thank you for your support.
Yoav Stern,Chief Executive Officer and Member of
the Board of Directors
FINANCIAL RESULTS:
Fourth Quarter 2023 Financial
Results
- Total revenues for the fourth
quarter of 2023 were $14,454,000, compared to $12,158,000 in the
third quarter of 2023, and $12,104,000 in the fourth quarter of
2022. The increase is attributed mostly to increased and more
effective sales efforts across the Company’s product lines.
- Cost of revenues excluding
write-down of inventories and amortization of assets recognized in
business combination and technology for the fourth quarter of 2023
was $7,358,000, compared to $6,739,000 in the third quarter of
2023, and $3,784,000 in the fourth quarter of 2022. The increase
resulted primarily from the above-mentioned increase in
revenues.
- Research and development (R&D)
expenses for the fourth quarter of 2023 were $13,580,000, compared
to $12,788,000 in the third quarter of 2023, and $20,993,000 in the
fourth quarter of 2022. The increase compared to the third quarter
of 2023 is mainly attributed to an increase in payroll and
subcontractors expenses. The decrease compared to the fourth
quarter of 2022 is mainly attributed to a decrease in materials,
share-based payments, payroll expenses and subcontractors
expenses.
- Sales and marketing (S&M)
expenses for the fourth quarter of 2023 were $8,289,000, compared
to $7,715,000 in the third quarter of 2023, and $9,758,000 in the
fourth quarter of 2022. The increase compared to the third quarter
of 2023 is mainly attributed to an increase in marketing and other
expenses, partially offset by a decrease in share-based payments.
The decrease compared to the fourth quarter of 2022 is mainly
attributed to a decrease in share-based payments expenses.
- General and administrative
(G&A) expenses for the fourth quarter of 2023 were $14,051,000,
compared to $20,848,000 in the third quarter of 2023, and
$9,091,000 in the fourth quarter of 2022. The decrease compared to
the third quarter of 2023 is mainly attributed to a decrease in
professional services expenses, mainly from proxy contest related
expenses, including the matters relating to activist shareholders
and ADS holders, such as proxy advisory, voting, and litigation.
The increase compared to the third quarter of 2022 is mainly
attributed to an increase in professional services, from the same
aforementioned reasons and share-based payments expenses.Other
income, net for the fourth quarter of 2023 was $1,627,000, compared
to $0 for third quarter of 2023, same as for the third quarter of
2023. The increase was attributed to additional compensation from
government authorities for damaged inventory, less reorganization
costs which we incurred during 2023.
- Impartment losses for the fourth
quarter of 2022, were $40,523,000. In 2023, no impairment losses
were recognized.
- Net loss attributed to owners for
the fourth quarter of 2023 was $1,049,000, or $0.01 loss per share,
compared to net loss of $66,604,000, or $0.26 loss per share, in
the third quarter of 2023, and net loss of $87,667,000, or $0.34
loss per share, in the fourth quarter of 2022.
Year Ended December 31, 2023 Financial
Results
- Total revenues for the year ended
December 31, 2023, were $56,314,000, compared to $43,633,000 in the
year ended December 31, 2022. The increase is attributed mostly to
increased and more effective sales efforts across our product
lines.
- Cost of revenues excluding
write-down of inventories and amortization of assets recognized in
business combination and technology for the year ended December 31,
2023, was $30,759,000, compared to $24,943,000 in the year ended
December 31, 2022. The increase resulted primarily from the
above-mentioned increase in revenues.
- R&D expenses for the year ended
December 31, 2023, were $62,004,000, compared to $75,763,000 for
the year ended December 31, 2022. The decrease is attributed to a
decrease of $9,702,000 in share-based payments expenses, as well as
a decrease of $3,627,000 in subcontractors’ expenses and a decrease
of $2,176,000 in payroll and related expenses.
- S&M expenses for the year ended
December 31, 2023, were $31,707,000, compared to $38,833,000 for
the year ended December 31, 2022. The decrease resulted primarily
from a decrease of $6,126,000 in share-based payments expenses and
a decrease of $982,000 in payroll and related expenses.
- G&A expenses for the year ended
December 31, 2023, were $58,254,000, compared to $30,457,000 for
the year ended December 31, 2022. The increase resulted primarily
from an increase of $19,421,000 in professional services, mainly
from proxy contest related expenses, including the matters relating
to activist shareholders and ADS holders, such as proxy advisory,
voting, and litigation, as well as an increase of $4,711,000 in
payroll and related expenses and an increase of $3,508,000 in
share-based payments expenses.
- Other income, net for the year
ended December 31, 2023, was $1,627,000 compared to $0 for the year
ended December 31, 2022. The increase was attributed to additional
compensation from government authorities for damaged inventory,
less reorganization costs which we incurred during 2023.
- Impairment losses for the year
ended December 31, 2022, were $40,523,000. In 2023, no impairment
losses were recognized.
- Net loss attributed to the owners
for the year ended December 31, 2023, was $54,550,000, or $0.22 per
share, compared to loss of $227,423,000, or $0.88 per share, for
the year ended December 31, 2022.
Balance Sheet Highlights
- Cash and cash equivalents, together
with short unrestricted bank deposits totaled $851,538,000 as of
December 31, 2023, compared to $1,032,025,000 as of December 31,
2022.
- Total shareholders’ equity totaled to $1,015,786,000 as of
December 31, 2023, compared to $1,150,292,000 as of December 31,
2022.
CONFERENCE CALL
INFORMATION:
Mr. Yoav Stern, Chief Executive Officer and Member of the Board
of Directors, Mr. Tomer Pinchas, Chief Financial Officer and Chief
Operating Officer, and Mr. Julien Lederman, VP of Corporate
Development, of Nano Dimension will host a conference call on March
21st, 2024, at 9:00 am ET, to discuss the financial results.
Participants can register for the conference by navigating to:
https://dpregister.com/sreg/10186876/fbb757cdc0
The call can be accessed via webcast link or phone as detailed
below.
For webcast link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=3Z1noPJV
For phone:U.S. Dial-in Number (Toll Free):
1-844-695-5517International Dial-in Number: 1-412-902-6751Israel
Dial-in Number (Toll Free): 1-80-9212373
Participants will be required to state their name and company
upon entering the call.
A replay will be available after the end of the
conference call on Nano Dimension’s website.
About Nano Dimension
Nano Dimension’s (Nasdaq: NNDM) vision is to transform existing
electronics and mechanical manufacturing into Industry 4.0
environmentally friendly & economically efficient precision
additive electronics and manufacturing – by delivering solutions
that convert digital designs to electronic or mechanical devices –
on demand, anytime, anywhere.
Nano Dimension’s strategy is driven by the application of deep
learning based AI to drive improvements in manufacturing
capabilities by using self-learning & self-improving systems,
along with the management of a distributed manufacturing network
via the cloud.
Nano Dimension has served over 2,000 customers across vertical
target markets such as aerospace and defense, advanced automotive,
high-tech industrial, specialty medical technology, R&D and
academia. The Company designs and makes Additive Electronics and
Additive Manufacturing 3D printing machines and consumable
materials. Additive Electronics are manufacturing machines that
enable the design and development of
High-Performance-Electronic-Devices (Hi-PED®s). Additive
Manufacturing includes manufacturing solutions for production of
metal, ceramic, and specialty polymers-based applications – from
millimeters to several centimeters in size with micron
precision.
Through the integration of its portfolio of products, Nano
Dimension is offering the advantages of rapid prototyping,
high-mix-low-volume production, IP security, minimal environmental
footprint, and design-for-manufacturing capabilities, which is all
unleashed with the limitless possibilities of additive
manufacturing.
For more information, please visit www.nano-di.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995 and other
Federal securities laws. Words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “estimates” and similar
expressions or variations of such words are intended to identify
forward-looking statements. Because such statements deal with
future events and are based on Nano Dimension’s current
expectations, they are subject to various risks and uncertainties,
and actual results, performance or achievements of Nano Dimension
could differ materially from those described in or implied by the
statements in this press release. For example, Nano Dimension is
using forward-looking statements when it discusses its expected
2024 cash burn, its business outlook and new opportunities, the
expected benefits from the Initiative, including becoming operating
income positive in 2025 or earlier and annual savings, potential
collaborations with strategic partners, its gross margin goal, its
expectation to be profitable and see savings in operating expenses,
future organic investment, M&A and return of capital to
shareholders, including share repurchases, industry conditions,
including potential consolidation, expectations as to future
revenue, bottom-line magnitudes, delivering value to shareholders
and future ROI. The forward-looking statements contained or implied
in this press release are subject to other risks and uncertainties,
including those discussed under the heading “Risk Factors” in Nano
Dimension’s Annual Report on Form 20-F filed with the Securities
and Exchange Commission (“SEC”) on March 30, 2023, and in any
subsequent filings with the SEC. Except as otherwise required by
law, Nano Dimension undertakes no obligation to publicly release
any revisions to these forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events. References and links to websites have been
provided as a convenience, and the information contained on such
websites is not incorporated by reference into this press release.
Nano Dimension is not responsible for the contents of third-party
websites.
NANO DIMENSION INVESTOR RELATIONS
CONTACT
Tomer Pinchas, CFO & COO| ir@nano-di.com
|
Consolidated
Statements of Financial Position as at(In thousands of U.S
dollars) |
|
|
|
December 31, |
|
2022 |
|
2023 |
Assets |
|
|
Cash and cash equivalents |
685,362 |
|
|
309,571 |
|
Bank deposits |
346,663 |
|
|
541,967 |
|
Restricted deposits |
60 |
|
|
60 |
|
Trade receivables |
6,342 |
|
|
12,710 |
|
Other receivables |
6,491 |
|
|
11,290 |
|
Inventory |
19,400 |
|
|
18,390 |
|
Total current assets |
1,064,318 |
|
|
893,988 |
|
|
|
|
Restricted deposits |
850 |
|
|
881 |
|
Investment in securities |
114,984 |
|
|
138,446 |
|
Deferred tax |
115 |
|
|
— |
|
Other receivables |
809 |
|
|
— |
|
Property plant and equipment, net |
5,843 |
|
|
16,716 |
|
Right-of-use assets |
16,539 |
|
|
12,072 |
|
Intangible assets |
— |
|
|
2,235 |
|
Total non-current assets |
139,140 |
|
|
170,350 |
|
Total
assets |
1,203,458 |
|
|
1,064,338 |
|
|
|
|
Liabilities |
|
|
Trade payables |
3,722 |
|
|
4,696 |
|
Financial derivatives and deferred consideration |
8,798 |
|
|
— |
|
Other payables |
24,150 |
|
|
29,738 |
|
Current portion of other long-term liability |
363 |
|
|
38 |
|
Total current liabilities |
37,033 |
|
|
34,472 |
|
|
|
|
Liability in respect of government grants |
1,492 |
|
|
1,895 |
|
Employee benefits |
1,462 |
|
|
2,773 |
|
Liability in respect of warrants |
69 |
|
|
— |
|
Lease liability |
12,374 |
|
|
8,742 |
|
Deferred tax liabilities |
— |
|
|
75 |
|
Loan from banks |
736 |
|
|
595 |
|
Total non-current
liabilities |
16,133 |
|
|
14,080 |
|
Total
liabilities |
53,166 |
|
|
48,552 |
|
|
|
|
Equity |
|
|
Non-controlling
interests |
767 |
|
|
1,011 |
|
Share capital |
388,406 |
|
|
400,700 |
|
Share premium and capital reserves |
1,296,194 |
|
|
1,299,542 |
|
Treasury shares |
(1,509 |
) |
|
(97,896 |
) |
Foreign currency translation reserve |
583 |
|
|
2,929 |
|
Remeasurement of net defined benefit liability (IAS 19) |
2,508 |
|
|
707 |
|
Accumulated loss |
(536,657 |
) |
|
(591,207 |
) |
Equity attributable to owners of the Company |
1,149,525 |
|
|
1,014,775 |
|
Total
equity |
1,150,292 |
|
|
1,015,786 |
|
Total liabilities and
equity |
1,203,458 |
|
|
1,064,338 |
|
|
|
|
|
Consolidated Statements of Profit or Loss and Other
Comprehensive Income(In thousands of U.S dollars, except
per share amounts) |
|
|
|
|
|
For the year endedDecember
31, |
|
Three Months EndedDecember
31, |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
Revenues |
43,633 |
|
|
56,314 |
|
|
12,104 |
|
|
14,454 |
|
Cost of revenues |
24,943 |
|
|
30,759 |
|
|
3,784 |
|
|
7,358 |
|
Cost of revenues - write-down
of inventories and amortization of assets recognized in business
combination and technology |
4,639 |
|
|
97 |
|
|
649 |
|
|
68 |
|
Total cost of revenues |
29,582 |
|
|
30,856 |
|
|
4,433 |
|
|
7,426 |
|
Gross
profit |
14,051 |
|
|
25,458 |
|
|
7,671 |
|
|
7,028 |
|
Research and development
expenses |
75,763 |
|
|
62,004 |
|
|
20,993 |
|
|
13,580 |
|
Sales and marketing
expenses |
38,833 |
|
|
31,707 |
|
|
9,758 |
|
|
8,289 |
|
General and administrative
expenses |
30,457 |
|
|
58,254 |
|
|
9,091 |
|
|
14,051 |
|
Other income, net |
— |
|
|
1,627 |
|
|
— |
|
|
1,627 |
|
Impairment losses on
intangible assets |
40,523 |
|
|
— |
|
|
40,523 |
|
|
— |
|
Operating
loss |
(171,525 |
) |
|
(124,880 |
) |
|
(72,694 |
) |
|
(27,265 |
) |
Finance income |
22,965 |
|
|
70,934 |
|
|
11,105 |
|
|
26,904 |
|
Finance expenses |
79,471 |
|
|
1,652 |
|
|
25,305 |
|
|
796 |
|
Loss before taxes on
income |
(228,031 |
) |
|
(55,598 |
) |
|
(86,894 |
) |
|
(1,157 |
) |
Taxes expenses |
(264 |
) |
|
(62 |
) |
|
(1,006 |
) |
|
(183 |
) |
Loss for the
period |
(228,295 |
) |
|
(55,660 |
) |
|
(87,900 |
) |
|
(1,340 |
) |
Loss attributable to
non-controlling interests |
(872 |
) |
|
(1,110 |
) |
|
(233 |
) |
|
(291 |
) |
Loss attributable to
owners |
(227,423 |
) |
|
(54,550 |
) |
|
(87,667 |
) |
|
(1,049 |
) |
|
|
|
|
|
Loss per
share |
|
|
|
|
Basic loss per share |
(0.88 |
) |
|
(0.22 |
) |
|
(0.34 |
) |
|
(0.01 |
) |
|
|
|
|
|
Other comprehensive
income items that after initial recognition
in comprehensive income were or will be transferred to
profit or loss |
|
|
|
|
Foreign currency translation
differences for foreign operations |
(844 |
) |
|
2,368 |
|
|
1,507 |
|
|
2,024 |
|
Other comprehensive
income items that will not be transferred to profit or
loss |
|
|
|
|
Remeasurement of net defined
benefit liability (IAS 19), net of tax |
2,508 |
|
|
(1,801 |
) |
|
(619 |
) |
|
(741 |
) |
Total other
comprehensive income for the period |
1,664 |
|
|
567 |
|
|
888 |
|
|
1,283 |
|
Total comprehensive
loss for the period |
(226,631 |
) |
|
(55,093 |
) |
|
(87,012 |
) |
|
(57 |
) |
Comprehensive loss
attributable to non-controlling interests |
(892 |
) |
|
(1,088 |
) |
|
(157 |
) |
|
(258 |
) |
Comprehensive loss
attributable to owners of the Company |
(225,739 |
) |
|
(54,005 |
) |
|
(86,855 |
) |
|
201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Changes in Equity
(Unaudited)(In thousands of U.S dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
Share premium and capital reserves |
Remeasurement of IAS 19 |
Treasury shares |
Foreign currency translation reserve |
Accumulated loss |
Total |
Non-controlling interests |
Total equity |
For the year ended
December 31, 2023: |
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2023 |
388,406 |
|
1,296,194 |
|
2,508 |
|
(1,509 |
) |
583 |
|
(536,657 |
) |
1,149,525 |
|
767 |
|
1,150,292 |
|
Investment of non-controlling
party in subsidiary |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,332 |
|
1,332 |
|
Loss for the year |
— |
|
— |
|
— |
|
— |
|
— |
|
(54,550 |
) |
(54,550 |
) |
(1,110 |
) |
(55,660 |
) |
Other comprehensive income
(loss) for the year |
— |
|
— |
|
(1,801 |
) |
— |
|
2,346 |
|
— |
|
545 |
|
22 |
|
567 |
|
Exercise of warrants, options
andvesting of RSUs |
12,294 |
|
(12,294 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Repurchase oftreasury
shares |
— |
|
— |
|
— |
|
(96,387 |
) |
— |
|
— |
|
(96,387 |
) |
— |
|
(96,387 |
) |
Share-based payment
acquired |
— |
|
(4,459 |
) |
— |
|
— |
|
— |
|
— |
|
(4,459 |
) |
— |
|
(4,459 |
) |
Share-based payments |
— |
|
20,101 |
|
— |
|
— |
|
— |
|
— |
|
20,101 |
|
— |
|
20,101 |
|
Balance as of December 31,
2023 |
400,700 |
|
1,299,542 |
|
707 |
|
(97,896 |
) |
2,929 |
|
(591,207 |
) |
1,014,775 |
|
1,011 |
|
1,015,786 |
|
|
Share capital |
Share premium and capital reserves |
Remeasurement of IAS 19 |
Treasury shares |
Foreign currency translation reserve |
Accumulated loss |
Total |
Non-controlling interests |
Total equity |
For the three months
endedDecember 31, 2023: |
|
|
|
|
|
|
|
|
|
|
|
Balance as of September 30, 2023 |
399,327 |
|
1,299,303 |
|
1,448 |
|
(89,375 |
) |
938 |
|
(590,158 |
) |
1,021,483 |
|
660 |
|
1,022,143 |
|
Investment of
non-controlling party in subsidiary |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
609 |
|
609 |
|
Loss for the
year |
— |
|
— |
|
— |
|
— |
|
— |
|
(1,049 |
) |
(1,049 |
) |
(291 |
) |
(1,340 |
) |
Other comprehensive
loss for the period |
— |
|
— |
|
(741 |
) |
— |
|
1,991 |
|
— |
|
1,250 |
|
33 |
|
1,283 |
|
Exercise of warrants,
options andvesting of RSUs |
1,373 |
|
(1,373 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Repurchase
oftreasury shares |
— |
|
— |
|
— |
|
(8,521 |
) |
— |
|
— |
|
(8,521 |
) |
— |
|
(8,521 |
) |
Share based payment
acquired |
— |
|
(2,679 |
) |
— |
|
— |
|
— |
|
— |
|
(2,679 |
) |
— |
|
(2,679 |
) |
Share-based
payments |
— |
|
4,291 |
|
— |
|
— |
|
— |
|
— |
|
4,291 |
|
— |
|
4,291 |
|
Balance as of December
31, 2023 |
400,700 |
|
1,299,542 |
|
707 |
|
(97,896 |
) |
2,929 |
|
(591,207 |
) |
1,014,775 |
|
1,011 |
|
1,015,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows(In thousands
of U.S dollars) |
|
|
|
|
|
For the Year EndedDecember
31, |
|
Three Months EndedDecember
31, |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
Cash flow from
operating activities: |
|
|
|
|
Net loss |
(228,295 |
) |
|
(55,660 |
) |
|
(87,900 |
) |
|
(1,340 |
) |
Adjustments: |
|
|
|
|
Depreciation and
amortization |
7,283 |
|
|
6,544 |
|
|
1,199 |
|
|
1,993 |
|
Impairment losses |
40,523 |
|
|
— |
|
|
40,523 |
|
|
— |
|
Financing income net |
(1,769 |
) |
|
(46,281 |
) |
|
(10,858 |
) |
|
(19,606 |
) |
Revaluation of financial
liabilities accounted at fair value |
(4,516 |
) |
|
461 |
|
|
335 |
|
|
(7 |
) |
Revaluation of financial
assets accounted at fair value |
62,791 |
|
|
(23,462 |
) |
|
24,723 |
|
|
(6,495 |
) |
Loss (gain) from disposal of
property plant and equipment and right-of-use assets |
948 |
|
|
326 |
|
|
857 |
|
|
(7 |
) |
(Increase) decrease in
deferred tax |
(581 |
) |
|
(11 |
) |
|
860 |
|
|
84 |
|
Share-based payments |
32,563 |
|
|
20,101 |
|
|
5,926 |
|
|
4,291 |
|
Other |
166 |
|
|
164 |
|
|
45 |
|
|
43 |
|
|
137,408 |
|
|
(42,158 |
) |
|
63,610 |
|
|
(19,704 |
) |
Changes in assets and
liabilities: |
|
|
|
— |
|
(Increase) decrease in
inventory |
(4,603 |
) |
|
(340 |
) |
|
(1,219 |
) |
|
2,913 |
|
Increase in other
receivables |
(1,978 |
) |
|
(5,775 |
) |
|
(5,552 |
) |
|
(7,434 |
) |
Increase in trade
receivables |
(1,992 |
) |
|
(5,603 |
) |
|
(231 |
) |
|
(1,652 |
) |
Increase in other
payables |
5,281 |
|
|
4,856 |
|
|
3,948 |
|
|
1,948 |
|
Increase (decrease) in
employee benefits |
1,497 |
|
|
(1,478 |
) |
|
396 |
|
|
(486 |
) |
Increase (decrease) in trade
payables |
628 |
|
|
1,089 |
|
|
670 |
|
|
(3,653 |
) |
|
(1,167 |
) |
|
(7,251 |
) |
|
(1,988 |
) |
|
(8,364 |
) |
Net cash used in
operating activities |
(92,054 |
) |
|
(105,069 |
) |
|
(26,278 |
) |
|
(29,408 |
) |
|
|
|
|
|
Cash flow from
investing activities: |
|
|
|
|
Change in bank deposits |
141,555 |
|
|
(189,060 |
) |
|
328,967 |
|
|
(152,044 |
) |
Interest received |
17,465 |
|
|
41,529 |
|
|
12,831 |
|
|
11,725 |
|
Change in restricted bank
deposits |
(327 |
) |
|
(27 |
) |
|
(311 |
) |
|
11 |
|
Acquisition of property plant
and equipment |
(9,388 |
) |
|
(9,098 |
) |
|
(3,329 |
) |
|
(32 |
) |
Acquisition of intangible
asset |
— |
|
|
(1,524 |
) |
|
— |
|
|
— |
|
Acquisition of subsidiaries,
net of cash acquired |
(31,057 |
) |
|
— |
|
|
1 |
|
|
— |
|
Payment of a liability for
contingent consideration in a business combination |
(10,708 |
) |
|
(9,255 |
) |
|
— |
|
|
— |
|
Acquisition of financial
assets in fair value through profit and loss |
(177,775 |
) |
|
— |
|
|
— |
|
|
— |
|
Decrease in deposit in
escrow |
3,362 |
|
|
— |
|
|
3,362 |
|
|
— |
|
Other |
(800 |
) |
|
835 |
|
|
(800 |
) |
|
835 |
|
Net cash from (used
in) investing activities |
(67,673 |
) |
|
(166,600 |
) |
|
340,721 |
|
|
(139,505 |
) |
|
|
|
|
|
Cash flow from
financing activities: |
|
|
|
|
Lease payments |
(4,151 |
) |
|
(4,823 |
) |
|
(1,063 |
) |
|
(1,183 |
) |
Repayment long-term bank
debt |
(406 |
) |
|
(536 |
) |
|
(103 |
) |
|
(343 |
) |
Proceeds from non-controlling
interests |
510 |
|
|
1,089 |
|
|
— |
|
|
539 |
|
Amounts recognized in respect
of government grants liability |
(221 |
) |
|
(298 |
) |
|
(89 |
) |
|
(73 |
) |
Payments of share price
protection recognized in business combination |
(1,005 |
) |
|
(4,459 |
) |
|
(261 |
) |
|
(2,679 |
) |
Repurchase of treasury
shares |
— |
|
|
(96,387 |
) |
|
— |
|
|
(10,661 |
) |
Net cash used in
financing activities |
(5,273 |
) |
|
(105,414 |
) |
|
(1,516 |
) |
|
(14,400 |
) |
Increase (decrease) in
cash and cash equivalents |
(165,000 |
) |
|
(377,083 |
) |
|
312,927 |
|
|
(183,313 |
) |
Cash and cash
equivalents at beginning of the year |
853,626 |
|
|
685,362 |
|
|
370,197 |
|
|
489,323 |
|
Effect of exchange
rate fluctuations on cash |
(3,264 |
) |
|
1,292 |
|
|
2,238 |
|
|
3,561 |
|
Cash and cash
equivalents at end of the year |
685,362 |
|
|
309,571 |
|
|
685,362 |
|
|
309,571 |
|
|
|
|
|
|
Non-cash
transactions: |
|
|
|
|
Intangible asset acquired on
credit |
— |
|
|
711 |
|
|
— |
|
|
— |
|
Property plant and equipment
acquired on credit |
52 |
|
|
214 |
|
|
(457 |
) |
|
515 |
|
Repurchase of treasury shares
on credit |
— |
|
|
— |
|
|
— |
|
|
(2,140 |
) |
Recognition of a right-of-use
asset |
15,196 |
|
|
929 |
|
|
3,660 |
|
|
730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS Measures
The following are reconciliations of income before taxes, as
calculated in accordance with International Financial Reporting
Standards (“IFRS”), to EBITDA and Adjusted EBITDA, as well as of
gross profit, as calculated in accordance with IFRS, to Adjusted
Gross Profit:
|
Year Ended December 31,2023 |
|
Three-Months Period Ended December
31,2023 |
(In thousands of USD) |
|
|
Net loss |
(55,660 |
) |
|
(1,340 |
) |
Tax expenses |
62 |
|
|
183 |
|
Depreciation |
6,544 |
|
|
1,993 |
|
Interest income |
(45,904 |
) |
|
(11,329 |
) |
EBITDA (loss) |
(94,958 |
) |
|
(10,493 |
) |
Finance income from
revaluation of assets and liabilities |
(21,887 |
) |
|
(5,748 |
) |
Exchange rate differences |
(1,571 |
) |
|
(9,061 |
) |
Share-based payments
expenses |
20,101 |
|
|
4,291 |
|
Other extraordinary income,
net |
(1,627 |
) |
|
(1,627 |
) |
Adjusted EBITDA (loss) |
(99,942 |
) |
|
(22,638 |
) |
|
|
|
Gross profit |
25,458 |
|
|
7,028 |
|
Depreciation |
390 |
|
|
115 |
|
Share-based payments |
1,434 |
|
|
245 |
|
Adjusted gross profit |
27,282 |
|
|
7,388 |
|
|
|
|
|
|
|
EBITDA is a non-IFRS measure and is defined as income before
taxes, excluding depreciation and amortization expenses and
interest income. We believe that EBITDA, as described above, should
be considered in evaluating the Company’s operations. EBITDA
facilitates the Company’s performance comparisons from period to
period and company to company by backing out potential differences
caused by variations in capital structures, and the age and
depreciation charges and amortization of fixed and intangible
assets, respectively (affecting relative depreciation and
amortization expense, respectively), and EBITDA is useful to an
investor in evaluating our operating performance because it is
widely used by investors, securities analysts and other interested
parties to measure a company’s operating performance without regard
to the items mentioned above.
Adjusted EBITDA is a non-IFRS measure and is
defined as earnings before other financial income, income tax,
depreciation and amortization, share-based payments and other
extraordinary income, net, which consists of additional
compensation for damaged inventory, less reorganization costs (see
Notes 6 and 18(C) to our financial statements). Other financial
expense (income), net includes exchange rate differences as well as
finance income for revaluation of assets and liabilities. We
believe that Adjusted EBITDA, as described above, should also be
considered in evaluating the company’s operations. Like EBITDA,
Adjusted EBITDA facilitates operating performance comparisons from
period to period and company to company by backing out potential
differences caused by variations in capital structures (affecting
other financial expenses (income), net), and the age and
depreciation charges and amortization of fixed and intangible
assets, respectively (affecting relative depreciation and
amortization expense, respectively), as well as from share-based
payment expenses, and Adjusted EBITDA is useful to an investor in
evaluating our operating performance because it is widely used by
investors, securities analysts and other interested parties to
measure a company’s operating performance without regard to
non-cash items, such as expenses related to share-based
payments.
Adjusted gross profit, excluding depreciation
and amortization and share-based compensation expenses, is a
non-IFRS measure and is defined as gross profit excluding
amortization expenses. We believe that adjusted gross profit, as
described above, should also be considered in evaluating the
Company’s operations. Adjusted gross profit facilitates gross
profit and gross margin comparisons from period to period and
company to company by backing out potential differences caused by
variations in amortization of inventory and intangible assets.
Adjusted gross profit is useful to an investor in evaluating our
performance because it enables investors, securities analysts and
other interested parties to measure a company’s performance without
regard to non-cash items, such as amortization expenses. Adjusted
gross margin is calculated by dividing the adjusted gross profit by
the revenues.
EBITDA, Adjusted EBITDA, and Adjusted gross
profit do not represent cash generated by operating activities in
accordance with IFRS and should not be considered alternatives to
net income (loss) as indicators of our operating performance or as
measures of our liquidity. These measures should be considered in
conjunction with net income (loss) as presented in our consolidated
statements of profit or loss and other comprehensive income. Other
companies may calculate these measures differently than we do.
_______________________________
1 Excluding cost of revenues from
depreciation and amortization and share-based payments expenses.²
Decrease in cash, cash equivalents and deposits (2023: $180,456,
2022: $323,309) net of treasury shares repurchase (2023: $96,387,
2022: $0) and Stratasys shares purchase (2023: $0, 2022:
$177,775).
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