Revenues from our Materialise Software segment increased 11.4% to 41,654 kEUR for the year ended
December 31, 2019 compared to 37,374 kEUR for the year ended December 31, 2018.
Revenues from our Materialise Medical segment grew by
16.4% for the year ended December 31, 2019 to 60,809 kEUR from 52,252 kEUR for the year ended December 31, 2018. Medical software growth was 13.9%, and revenues from medical devices and services increased 17.6%, including Engimplans
impact.
Revenues from our Materialise Manufacturing segment decreased 0.8% to 94,156 kEUR for the year ended December 31, 2019 from 94,956 kEUR
for the year ended December 31, 2018.
Operating profit improved 1,852 kEUR to 7,016 kEUR for the year ended December 31, 2019 from 5,164
kEUR. The increased net financial expenses of 1,070 kEUR and increased income tax expenses of 2,170 kEUR impacted our net result. Accordingly, net profit decreased to 1,724 kEUR for 2019 compared to 3,027 kEUR for 2018.
At December 31, 2019, we had cash and equivalents of 128,897 kEUR compared to 115,506 kEUR at December 31, 2018. Gross debt amounted to 127,939
kEUR (including 5,160 kEUR of lease liabilities recognized under the new accounting standard IFRS 16), compared to 106,037 kEUR at December 31, 2018.
Adjusted EBITDA for the year ended December 31, 2019 was 26,656 kEUR, an increase of 13.3% compared to 23,526 kEUR for the year ended
December 31, 2018. The Adjusted EBITDA margin increased to 13.6% from 12.7% in 2018.
Segment EBITDA from our Materialise Software segment was
33.2% in 2019 compared to 30.9% in 2018.
Segment EBITDA from our Materialise Medical segment was 17.7% in 2019, compared to 19.6% in 2018.
Segment EBITDA from our Materialise Manufacturing segment increased from 11.4% for 2018 to 12.9% in 2019.
Cash flow from operating activities for the year ended December 31, 2019 was 28,402 kEUR compared to 28,320 kEUR in the year ended December 31,
2018. Total capital expenditures for the year ended December 31, 2019 amounted to 15,665 kEUR. This amount included 1,070 kEUR of capitalized R&D expenditures from medical programs.
Net shareholders equity at December 31, 2019 was 142,675 kEUR compared to 135,989 kEUR at December 31, 2018.
Note on Comparability
As a result of the implementation of
the new accounting standard IFRS 16, we recognized additional lease assets and liabilities in the amount of 4,998 kEUR at January 1, 2019. At the end of the year ended December 31, 2019, the total commitment of lease assets and liabilities
amounted to 5,025 kEUR. Our Adjusted EBITDA for the year ended December 31, 2019 was affected positively by the new standard as a result of the rental payments decrease of 2,580 kEUR; however, our operating profit was impacted by (18) kEUR
as depreciation expenses increased by 2,597 kEUR. For the fourth quarter of 2019 our Adjusted EBITDA was affected positively by 641 kEUR, while our operating profit was impacted by (93) kEUR and depreciation expenses increased by 735 kEUR.
Non-IFRS Measures
Materialise uses EBITDA and Adjusted EBITDA as supplemental financial measures of its financial performance. EBITDA is calculated as net profit plus
income taxes, financial expenses (less financial income), shares of loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding non-cash stock-based compensation expenses
and acquisition-related expenses of business combinations to EBITDA. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact
of long-term investment and financing decisions, rather than the performance of the Companys 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 Companys 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 companys ability to grow or as a valuation measurement. The
Companys 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 Companys 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.