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 third
quarter ended September 30, 2018.
Highlights - Third Quarter 2018(1)
- Total revenues for the third quarter
decreased 3.6% to kEUR 7,121 from kEUR 7,387
- Gross profit margin decreased to 32.5%
from 42.7%
- Systems revenues decreased 9.8% to kEUR
3,744 from kEUR 4,153
- Services revenues increased 4.4% to
kEUR 3,377 from kEUR 3,234
- Reaffirm full year 2018 guidance,
except for full year adjusted EBITDA; adjusted EBITDA for the
fourth quarter of 2018 is expected to be neutral to positive
(1) Certain comparative figures for the 3-month and 9-month
periods ended September 30, 2017 were restated for immaterial
errors. For further information, see Notes 1 and 9 of the interim
consolidated financial statements.
Dr. Ingo Ederer, Chief Executive Officer of voxeljet,
commented, “We believe that the opportunities are vast both in our
direct and our indirect parts portfolio and I am extremely excited
about how our new products expand our total addressable market:
with indirect metal parts from our OEM solution VJET X, the most
productive additive manufacturing platform to date, we believe to
be on the forefront of a significant shift from conventional
production to serial additive manufacturing. With advanced material
combinations for direct parts from High Speed Sintering and a large
production platform being launched in 2019, we see us in a position
to unlock new customer groups. To develop and commercialize such
innovations is precisely the reason why I have started this company
20 years ago.”
Third Quarter 2018 Results
Revenues for the third quarter of 2018 slightly decreased by
3.6% to kEUR 7,121 compared to kEUR 7,387 in the third
quarter of 2017.
Revenues from our Systems segment, which focuses on the
development, production and sale of 3D printers, decreased 9.8% to
kEUR 3,744 in the third quarter of 2018 from kEUR 4,153
in last year’s third quarter. This was mainly due to a lower number
of printer sales during the quarter. The Company delivered three
new 3D printers in the third quarter of 2018, thereof one of our
largest scale printers, compared to six printers (three new and
three used and refurbished printers) in last year’s third
quarter. Systems revenues also include all revenues from
consumables, spare parts and maintenance, which slightly increased
compared to the last year’s same period. Systems revenues
represented 52.6% of total revenues in the third quarter of 2018
compared to 56.2% in last year’s third quarter.
Revenues from our Services segment, which focuses on the
printing of on-demand parts for our customers, slightly increased
4.4% to kEUR 3,377 in the third quarter of 2018 from kEUR
3,234 in the comparative period of 2017. This was due to higher
revenue contributions mainly from our subsidiary voxeljet America
Inc. (“voxeljet America”). The increase in revenue at our American
service center resulted from a growing market penetration in the
North American sales region which is accompanied by a larger
customer base. The revenue from voxeljet UK Ltd. (“voxeljet UK”)
moderately increased while revenues from our German operation as
well as our subsidiary voxeljet China Co. Ltd. (“voxeljet China”)
slightly decreased.
Cost of sales was kEUR 4,810 for the third quarter of 2018
compared to kEUR 4,236 for the third quarter of 2017.
Gross profit and gross profit margin were kEUR 2,311 and
32.5%, respectively, in the third quarter of 2018 compared to
kEUR 3,151 and 42.7% in the third quarter of 2017.
Gross profit for our Systems segment decreased significantly to
kEUR 1,197 in the third quarter of 2018 from kEUR 1,617 in the
third quarter of 2017. This was mainly related to the lower number
of printer sales compared to the last year’s same period. Gross
profit margin for this segment decreased to 32.0% in the third
quarter of 2018 compared to 38.9% in the third quarter of 2017. The
gross profit margin contribution related to the sale of 3D printers
was almost unchanged. In contrast, the gross profit margin
contribution from consumables, spare parts and maintenance
decreased in the third quarter of 2018 compared to last year’s same
period. This was mainly due to additional costs for training
activities for our workforce within the third quarter of 2018.
Gross profit for our Services segment decreased to kEUR 1,114 in
the third quarter of 2018 compared to kEUR 1,534 in the third
quarter of 2017. This was mainly due to lower gross profit
contributions from the German operation within the third quarter of
2018 compared to last year’s same period due to a larger portion of
sales with longer lead times, which generally have lower margins as
well as increased personnel expenses related to higher headcount.
The gross profit margin for this segment decreased to 33.0% in the
third quarter of 2018 from 47.4% in the third quarter of 2017.
Gross profit margin contributions from our subsidiaries voxeljet
America and voxeljet UK significantly improved while voxeljet UK,
still provided a negative contributions. The improvement regarding
voxeljet America and voxeljet UK resulted from a higher utilization
of these service centers. The higher utilization regarding our
American subsidiary was mainly related to a volume contract which
started in July 2018 with a revenue contribution of kEUR 315
for this quarter.
Selling expenses were kEUR 1,990 for the third quarter of 2018
compared to kEUR 1,615 in the third quarter of 2017. The increase
was mainly due to higher personnel expenses resulting from the
build-up of our sales force especially within the German operation
compared to the last year’s third quarter. In addition, delivery
costs increased, due to the release of shipping expenses related to
the sale of one of our largest 3D printers to a client in Indonesia
amounting to kEUR 92 which was expensed in the third quarter
of 2018.
Administrative expenses were kEUR 1,494 for the third quarter of
2018 compared to kEUR 1,354 in the third quarter of 2017. The
increase mainly related to higher personnel expenses resulting from
higher headcount especially regarding the German operation compared
to the last year’s third quarter. Furthermore the expenses for
external consulting increased related to the on-going improvements
of our Enterprise Resource Planning (ERP) system amounting to
kEUR 52.
Research and development (“R&D”) expenses increased to kEUR
1,660 in the third quarter of 2018 from kEUR 1,142 in the
third quarter of 2017. The increase of kEUR 518 was mainly due
to higher personnel expenses related to an increase in headcount in
order to support further research and development projects. In
addition expenses related to material and external services
for ongoing research and development projects increased compared to
the last year’s same period. Those expenses are usually driven by
individual projects and might differ on a quarter to quarter
comparison.
Other operating expenses in the third quarter of 2018 were
kEUR 195 compared to kEUR 414 in the prior year period. This
was mainly due to lower losses from foreign currency transaction of
kEUR 105 for the third quarter of 2018 compared to kEUR 305
for the third quarter of 2017.
Other operating income was kEUR 267 for the third quarter of
2018 compared to kEUR 384 in the third quarter of 2017.
The changes in foreign currency gains 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 2,761 in the third quarter of 2018,
compared to an operating loss of kEUR 990 in the comparative period
in 2017. This was primarily related to the significant decrease in
gross profit accompanied by higher operating expenses, compared to
the third quarter of 2017.
Financial result was negative kEUR 1,042 in the third quarter of
2018, compared to a financial result of negative
kEUR 36 in the comparative period in 2017. The
significant decrease was mainly related to the revaluation of
derivative financial instruments of the EIB loan, which did not
exist in the last year’s same period resulting in a finance expense
of kEUR 805. In addition interest expense for long-term debt
amounted to kEUR 238.
Net loss for the third quarter of 2018 was kEUR 3,797 or
EUR 1.02 per share, as compared to net loss of
kEUR 1,026, or EUR 0.27 per share, in the third quarter
of 2017.
Based on a conversion rate of five American Depositary Shares
(“ADSs”) per ordinary share, net loss was at EUR 0.20 per ADS for
the third quarter of 2018, compared to a net loss of EUR 0.06
per ADS for the third quarter of 2017. 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.
Nine Months Ended September 30, 2018 Results
Revenues for the nine months ended September 30, 2018 increased
by 2.1% to kEUR 17,435 compared to kEUR 17,070 in the prior
year period.
Systems revenues were kEUR 7,002 for the first nine months of
2018 compared to kEUR 8,388 for the same period last year. This was
mainly due to a lower number of printer sales during the period.
The Company sold four new and three used and refurbished 3D
printers during the first nine months of 2018 compared to eight new
and three used and refurbished 3D printers in the prior year’s
period. Systems revenues represented 40.2% of total revenue for the
nine months ended September 30, 2018 compared to 49.1% for the same
period a year ago. Systems revenues also include all revenues from
consumables, spare parts and maintenance, where we recorded a
significant increase compared to the last year’s same period, which
partially set off the declined revenues related to printer
sales.
Services revenues were kEUR 10,433 for the nine months ended
September 30, 2018 compared to kEUR 8,682 for the same period last
year. This increase of 20.2% was mainly due to a higher revenue
contribution from our subsidiary voxeljet America. This was
partially offset by lower revenues from our subsidiary voxeljet
China. Revenues from voxeljet UK as well as the German operation
during this period slightly increased.
Cost of sales for the nine months ended September 30, 2018 was
kEUR 11,141, an increase of kEUR 792, over cost of sales of
kEUR 10,349 for the same period in 2017.
Gross profit and gross profit margin for the nine months ended
September 30, 2018 were kEUR 6,294 and 36.1%, respectively,
compared to kEUR 6,721 and 39.4% in the prior year period.
Gross profit for our Systems segment decreased to kEUR 2,051 for
the nine months ended September 30, 2018 from kEUR 2,929 in the
same period in 2017. This decrease was mainly due to the lower
number of printer sales. The gross profit margin for this segment
decreased to 29.3% compared to 34.9% for the prior period. The
decrease was mainly related to lower gross profit margin
contribution from consumables, spare parts and maintenance in the
nine months ended September 30, 2018 compared to the last year’s
same period, while gross profit margin contribution from the sale
of 3D printers remained almost unchanged. The decline related to
the gross profit margin contribution from consumables, spare parts
and maintenance was mainly related to additional costs for training
activities for our workforce within the third quarter of 2018.
Gross profit for our Services segment increased to kEUR 4,243
for the nine months ended September 30, 2018 from kEUR 3,792
in the same period of 2017. This was mainly due to the increase in
revenues which resulted in higher gross profit. The gross profit
margin for this segment slightly decreased to 40.7% for the first
nine months of 2018 from 43.7% in the same period in 2017, mainly
related to decreased gross profit margin in our German service
center due a larger portion of sales with longer lead times, which
generally have lower margins as well as increased personnel
expenses related to higher headcount in the third quarter of 2018.
Gross profit margin contributions from voxeljet America as well as
voxeljet UK significantly improved, while voxeljet UK still
generated negative contributions.
Selling expenses were kEUR 5,384 for the nine months ended
September 30, 2018 compared to kEUR 4,400 in the same period in
2017, an increase of kEUR 984, or 22.4%. This was mainly due to
higher shipping costs related to the increase of Services revenues
as well as higher personnel expenses related to an increase in
headcount resulting from the build-up of our sales force within the
German operation.
Administrative expenses increased by kEUR 416 to kEUR 4,118 for
the first nine months of 2018 from kEUR 3,702 in the prior year’s
period. The increase was mainly due to higher personnel expenses
related to additional headcount.
R&D expenses increased to kEUR 4,771 for the nine months
ended September 30, 2018 from kEUR 3,954 in the same period in
2017, an increase of kEUR 817, or 20.7%. The increase was mainly
due to increased expenditures for personnel and materials to
support existing and future research and development projects.
Other operating expenses for the nine months ended September 30,
2018 were kEUR 612 compared to kEUR 1,605 in the prior year period.
This improvement was mainly due to lower losses from foreign
currency transactions amounting to kEUR 437 compared to kEUR
1,383 in the prior year’s period.
Other operating income was kEUR 1,036 for the nine months ended
September 30, 2018 compared to kEUR 766 in the prior year period.
The increase was mainly due to higher gains from foreign exchange
transactions amounting to kEUR 690 compared to kEUR 78 in
comparative period in 2017.
The changes in foreign currency losses and gains 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 7,555 in the nine months ended
September 30, 2018, compared to an operating loss of
kEUR 6,174 in the comparative period in 2017. The decline was
primarily related to a weaker gross profit accompanied by higher
operating expenses, partially offset by lower other operating
expenses as well as higher other operating income, compared to the
nine months ended September 30, 2017. The impact from the employee
share option plan amounted to kEUR 477 in the nine months
ended September 30, 2018 compared to kEUR 254 in the last
year’s same period.
Financial result was negative kEUR 902 for the nine months
ended September 30, 2018, compared to a financial result of
negative kEUR 78 in the comparative period in 2017. The decrease
was mainly related to interest expense for long-term debt of
kEUR 705 compared to kEUR 40 in the comparative period in
2017 as well as the revaluation of derivative financial instruments
of the EIB loan, which did not exist in the last year’s same
period, resulting in a finance expense of kEUR 89.
Net loss for the nine months ended September 30, 2018 was kEUR
8,464, or EUR 2.27 per share, as compared to net loss of kEUR
6,252, or EUR 1.68 per share in the prior year period. This is
based on a weighted average number of ordinary shares outstanding
of 3.720 million for the first nine months ended September 30,
2018. Compared to the last year’s same period, the number of
ordinary shares outstanding was unchanged.
Based on a conversion rate of five ADSs per ordinary share, net
loss was EUR 0.45 per ADS for the nine months ended September 30,
2018 compared to net loss of EUR 0.34 per ADS in the prior year
period.
Business Outlook
Our revenue guidance for the fourth quarter of 2018 is in the
range of kEUR 9,500 to kEUR 10,500.
We reaffirm our guidance for the full year ended December 31,
2018, except for full year adjusted EBITDA.
- Full year revenue is expected to be in
the range of kEUR 28,000 and kEUR 30,000
- Gross margin is expected to be above
40%
- Operating expenses for the full year
are expected as follows: SG&A expenses expected to be in the
range of kEUR 11,000 and kEUR 12,000 and R&D expenses
projected to be approximately kEUR 5,000 to kEUR 6,000.
Depreciation and amortization expense is expected to be between
kEUR 3,750 and kEUR 4,000.
- Adjusted EBITDA in the fourth quarter
of 2018 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 (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 5,500 to kEUR 6,500, which
primarily includes ongoing investments in our global
subsidiaries.
Our total backlog of 3D printer orders at September
30, 2018 was kEUR 5,311, which represents twelve 3D
printers. This compares to a backlog of kEUR 2,770
representing four 3D printers, at December 31, 2017. 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 September 30, 2018, we had cash and cash equivalents of
kEUR 3,101 and held kEUR 9,934 of investments in bond
funds, 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 third quarter on Wednesday, November 28,
2018 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
Third Quarter 2018 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 13684710. The recording will be available for
replay through December 5, 2018.
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=1218655&tp_key=d79857879b
at least fifteen minutes prior to the start of the call to
register, download and install any necessary audio software. A
replay will 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 which are difficult
to forecast for future periods.
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.
While the Company provides guidance for Adjusted EBITDA on a
forward-looking basis, a reconciliation of the differences between
the non-IFRS expectation and the corresponding IFRS measure
(expected net income (loss)) is not available without unreasonable
effort due to potentially high variability, complexity and low
visibility as to the items that would be excluded from the IFRS
measure in the relevant future period, such as unusual gains and
losses, fluctuations in foreign currency exchange rates, the impact
and timing of potential acquisitions and divestitures, and other
structural changes or their probable significance. The variability
of the excluded items may have a significant, and potentially
unpredictable, impact on our future IFRS results.
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 1.1576 to
EUR 1.00, the noon buying rate of the Federal Reserve Bank of New
York for the euro on September 30, 2018.
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,’’ ‘‘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.
voxeljet AG
CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
Notes 9/30/2018 12/31/2017 (1)
(€ in thousands) unaudited Current assets
30,086 37,494 Cash and cash equivalents 2, 7 3,101
7,569 Financial assets 2, 7 9,934 14,044 Trade receivables 2 4,727
5,093 Inventories 4 10,686 9,259 Income tax receivables 16 3 Other
assets 1,622 1,526
Non-current assets 29,683
29,508 Financial assets 2, 7 268 357 Intangible assets 1,410
1,111 Property, plant and equipment 5 27,914 27,949 Investments in
joint venture 30 39 Other assets 61 52
Total
assets 59,769 67,002
Notes 9/30/2018 12/31/2017 (1)
Current liabilities 7,557 6,576 Deferred
income 2 21 271 Trade payables 2 3,250 3,059 Contract liabilities 2
1,366 -- Financial liabilities 2, 7 940 1,162 Other liabilities and
provisions 6 1,980 2,084
Non-current liabilities
16,582 16,537 Deferred income 2 -- 18 Deferred tax
liabilities 72 66 Financial liabilities 2, 7 16,334 16,413 Other
liabilities and provisions 6 176 40
Equity
35,630 43,889 Subscribed capital 3,720 3,720 Capital
reserves 76,704 76,227 Accumulated deficit 2 (46,111) (37,509)
Accumulated other comprehensive income 1,271 1,380
Equity
attributable to the owners of the company 35,584
43,818 Non controlling interest 46 71
Total equity and liabilities 59,769 67,002
See accompanying notes to unaudited
consolidated interim financial statements.
(1) Comparative figures for the year ended December 31, 2017
were restated for immaterial errors. For further information, see
Notes 1 and 9 of the interim consolidated financial statements.
voxeljet AG
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS (UNAUDITED)
Three months ended September 30, Nine months ended
September 30, Notes 2018 2017 (1)
2018 2017 (1) (€ in thousands except share
and share data) Revenues 2, 10, 11 7,121 7,387 17,435 17,070
Cost of sales (4,810) (4,236) (11,141) (10,349)
Gross profit
2, 10 2,311 3,151 6,294 6,721
Selling expenses (1,990) (1,615) (5,384) (4,400) Administrative
expenses (1,494) (1,354) (4,118) (3,702) Research and development
expenses (1,660) (1,142) (4,771) (3,954) Other operating expenses
(195) (414) (612) (1,605) Other operating income 267 384 1,036 766
Operating loss (2,761) (990) (7,555)
(6,174) Finance expense 8 (1,086) (41) (962) (90) Finance
income 8 44 5 60 12
Financial result 8 (1,042)
(36) (902) (78) Loss before income
taxes (3,803) (1,026) (8,457)
(6,252) Income taxes 6 -- (7) —
Net loss
(3,797) (1,026) (8,464) (6,252)
Other comprehensive income (18) 67 (109) 397
Total
comprehensive loss (3,815) (959) (8,573)
(5,855) Loss attributable to: Owners of the
Company (3,787) (1,021) (8,439) (6,238) Non-controlling interests
(10) (5) (25) (14)
(3,797) (1,026) (8,464)
(6,252) Total comprehensive loss attributable
to: Owners of the Company (3,805) (954) (8,548) (5,841)
Non-controlling interests (10) (5) (25) (14)
(3,815)
(959) (8,573) (5,855)
Weighted average number of ordinaryshares
outstanding
3,720,000 3,720,000 3,720,000 3,720,000 Loss per share - basic/
diluted (EUR) (1.02) (0.27) (2.27) (1.68)
See accompanying notes to unaudited
consolidated interim financial statements.
(1) Comparative figures for the 3-month and 9-month periods
ended September 30, 2017 were restated for immaterial errors. For
further information, see Notes 1 and 9 of the interim consolidated
financial statements.
voxeljet AG
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 January 1, 2017 3,720
75,827 (28,971) 873 51,449 87
51,536 Loss for the period -- -- (6,238) --
(6,238)
(14)
(6,252)
Net changes in fair value ofavailable for
sale financial assets
-- -- -- 1
1 --
1 Foreign currency translations -- --
-- 396
396 --
396 Equity-settled share-based payment
-- 254 -- --
254 --
254 Balance at September 30,
2017 (1) 3,720 76,081 (35,209)
1,270 45,862 73 45,935
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 (1) 3,720 76,227 (37,509)
1,380 43,818 71 43,889
Adjustment on initial application
ofIFRS 15
-- -- (100) -- (100) --
(100)
Adjustment on initial application
ofIFRS 9
-- -- (63) -- (63) --
(63) Adjusted balance at January 1, 2018 3,720
76,227 (37,672) 1,380 43,655 71
43,726 Loss for the period -- -- (8,439) --
(8,439)
(25)
(8,464)
Net changes in fair value of availablefor
sale financial assets
-- -- -- (1)
(1) --
(1) Foreign currency translations
-- -- -- (108)
(108) --
(108) Equity-settled
share-based payment -- 477 -- --
477 --
477
Balance at September 30, 2018 3,720 76,704
(46,111) 1,271 35,584 46 35,630
See accompanying notes to unaudited
consolidated interim financial statements.
(1) Comparative figures for the 9-month period ended September
30, 2017 and for the year ended December 31, 2017 were restated for
immaterial errors. For further information, see Notes 1 and 9 of
the interim consolidated financial statements.
voxeljet AG
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine months ended September 30, 2018
2017 (1) (€ in thousands) Cash Flow from
operating activities Loss for the period
(8,464) (6,252) Depreciation and amortization
2,605 2,272 Foreign currency exchange differences on loans to
subsidiaries 203 213 Equity-settled share-based payment transaction
477 254 Impairment losses on trade receivables 158 214 Change in
investment in joint venture 9 -- Non-cash interest expense on
long-term debt 581 -- Change in fair value of derivative equity
forward 89 -- Change in inventory allowance (361) (404) Deferred
income taxes 6 --
Change in working capital
(1,567) (2,869) Trade and other receivables,
inventories and current assets (2,875) (2,824) Trade payables 191
455 Other liabilities, contract liabilities, provisions and
deferred income 1,130 (505) Income tax receivable and payable (13)
5
Total (6,264) (6,572) Cash Flow
from investing activities Payments to acquire property,
plant and equipment and intangible assets (1,446) (2,118) Proceeds
from disposal of financial assets 10,288 1,835 Payments to acquire
financial assets (6,178) -- Investment in joint venture -- (50)
Total 2,664 (333) Cash Flow from
financing activities Repayment of bank overdrafts and
lines of credit (58) (94) Repayment of sale and leaseback
obligation (235) (292) Repayment of finance lease obligation (35)
(33) Repayment of long-term debt (594) (533) Proceeds from
long-term debt issuance 40 2,611
Total (882)
1,659 Net increase (decrease) in cash and cash
equivalents (4,482) (5,246) Cash and
cash equivalents at beginning of period 7,569
7,849 Changes to cash and cash equivalents due to foreign
exchanges rates 14 184
Cash and cash equivalents at end of
period 3,101 2,787 Supplemental Cash
Flow Information Interest paid 171 159 Interest received 39 14
See accompanying notes to unaudited
consolidated interim financial statements.
(1) Comparative figures for the 9-month period ended September
30, 2017 were restated for immaterial errors. For further
information, see Notes 1 and 9 of the interim consolidated
financial statements.
voxeljet AG
NOTES TO THE INTERIM FINANCIAL
STATEMENTS
1. Preparation of financial statements
Our 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 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.
Correction of errors
Certain comparative amounts in the consolidated statements of
financial position, consolidated statements of comprehensive loss,
consolidated statements of changes in equity, consolidated
statements of cashflows have been restated to correct for
immaterial errors with respect to the elimination of margin on
certain intra-group transactions. The impact of this restatement is
disclosed in Note 9. “Correction of errors”. Throughout the
consolidated financial statements, columns including comparative
figures that have been restated, are indicated with ‘(1)’.
The IASB issued a number of new IFRS standards which are
required to be adopted in annual periods beginning after January 1,
2018.
Standard Effective date
Descriptions IFRS 9 01/2019 Amendments Prepayment Features
with Negative Compensation IFRS 16 01/2019 Leases IAS 19 01/2019
Amendments Plan Amendment, Curtailment or Settlement IAS 28 01/2019
Amendments Long-term Interests in Associates and Joint Ventures
IFRIC 23 01/2019 Uncertainty over Income Tax Treatments
Improvements to IFRS (2015-2017) 01/2019 IFRS 3, IFRS 11, IAS 12,
IAS 23 Others 01/2020 Amendments References to the Conceptual
Framework in IFRS Standards IFRS 17 01/2021 Insurance Contracts
IFRS 10, IAS 28 indefinite
Amendment Sale or Contribution of Assets
between Investor and its Associate orJoint Venture
IFRS 16 leases is the IASB’s replacement of IAS 17 leases and
specifies how an IFRS reporter will recognize, measure, present and
disclose leases. The standard provides a single lessee accounting
model, requiring lessees to recognise assets and liabilities for
all leases unless the lease term is 12 months or less or the
underlying asset has a low value. Lessors continue to classify
leases as operating or finance, with IFRS 16’s approach to lessor
accounting substantially unchanged from its predecessor, IAS 17.
The Company has developed a project plan to analyze the potential
impact IFRS 16 will have on its consolidated financial statements
and related disclosures as well as its business processes, systems
and controls. The introduction of IFRS 16 will lead to an increase
in leased assets (right of use assets) and corresponding financial
liabilities on the balance sheet as well as higher interest
expenses.
The interim financial statements as of and for the nine months
ended September 30, 2018 and 2017 were authorized for issue by the
Management Board on November 27, 2018.
2. Summary of significant accounting policies
Except as described below, the accounting policies applied in
these 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, 2017, which can be found in
its Annual Report on Form 20-F that was filed with the U.S.
Securities and Exchange Commission. 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, 2018.
The Group has initially adopted IFRS 15, Revenue from Contracts
with Customers, and IFRS 9, Financial Instruments, on January 1,
2018. A number of other new standards are effective from January 1,
2018 but these do not have a material effect on the Company’s
consolidated financial statements.
- The adoption of IFRS 15 resulted in
minor impacts related to the revenue recognition regarding the
revenue streams from maintenance as well as extended warranty
contracts. Those impacts include immaterial timing differences for
revenue recognition related to these types of contracts with
customers. The new guidance is not expected to have a material
impact to net income (loss) on an ongoing basis.
- The adoption of IFRS 9 resulted in a
minor increase in impairment losses recognized on trade
receivables.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 establishes a comprehensive framework for determining
whether, how much and when revenue is recognized. It replaced IAS
18, Revenue, IAS 11, Construction Contracts, and related
interpretations. The Group has adopted IFRS 15 using the cumulative
effect method, with the effect of initially applying this standard
recognized at the date of initial application (i.e. January 1,
2018). Accordingly, the information presented for 2017 has not been
restated – i.e. it is presented, as previously reported, under IAS
18, IAS 11 and related interpretations.
The following table summarizes the impact, net of tax, of
transition to IFRS 15 on retained earnings as of January 1,
2018.
Impact at January 1, 2018
Impact on adoptingIFRS 15 at
January 1,2018
(€ in thousands) Retained earnings (100)
Recognition of revenues from maintenance and extended
warranty contracts (100)
The following table summarizes the impacts of adopting IFRS 15
on the Company’s consolidated interim consolidated statement of
financial position as of September 30, 2018 and its consolidated
interim statement of comprehensive loss for the nine months then
ended for each of the line items affected.
09/30/2018 As reported
Adjustments
Amounts withoutadoption of IFRS
15
(€ in thousands) Total assets 59,769
(327) 59,442
Current
assets
30,086 (327) 29,759 Trade receivables 4,727
(327) 4,400
Total equity and liabilities
59,769 (327) 59,442
Current
liabilities
7,557 (554) 7,003 Deferred income 21 256 277
Contract liabilities 1,366 (1,366) -- Other liabilities and
provisions 1,980 556 2,536
Equity
35,630 227 35,857 Accumulated deficit (46,111)
227 (45,884)
09/30/2018 As reported
Adjustments
Amounts withoutadoption of IFRS
15
(€ in thousands) Revenue 17,435 127 17,562 Impairment loss
on trade receivables under IFRS 15 (10) 10 -- Operating loss
(7,555) 137 (7,418) Loss before income taxes (8,457) 137 (8,320)
Net loss (8,464) 137 (8,327) Total comprehensive loss (8,573) 137
(8,436)
The details of the new accounting policies and the nature of the
changes to previous accounting policies in relation to the Group’s
revenue streams in relation to the Maintenance and extended
warranty contracts are set out below.
After the initial one year of statutory warranty period, the
Company offers its customers extended warranty and optional
maintenance contracts. Extended warranty and maintenance contracts
are generally provided for a period of twelve months and
automatically extended for another twelve months if not cancelled
on a timely basis. Before the adoption of IFRS 15 extended warranty
and maintenance service revenue has been recognized on a
straight-line basis over the contractual term.
Under IFRS 15, the Company recognizes revenue based on input
factors like the number of service visits or the provision of
certain goods, in particular printheads under the maintenance and
warranty contracts. Therefore the expected number of service visits
and goods to be provided under a contract have been estimated by
the Company’s service department based on historical experience.
This leads to minor timing differences for revenue recognition
related to these types of contracts with customers throughout the
contract term.
IFRS 9 Financial Instruments
IFRS 9 sets out requirements for recognizing and measuring
financial assets, financial liabilities and some contracts to buy
or sell non-financial items. This standard replaces IAS 39,
Financial Instruments.
The Company has applied the exemption not to restate comparative
information for prior periods with respect to classification and
measurement (including impairment) requirements. Differences in the
carrying amounts of financial assets and financial liabilities
resulting from the adoption of IFRS 9 are recognized in retained
earnings and reserves as of January 1, 2018. Accordingly, the
information presented for 2017 does not reflect the requirements of
IFRS 9 but rather those of IAS 39.
The details of new significant accounting policies and the
nature and effect of the changes to previous accounting policies
are set out below.
Classification and measurement of financial assets and financial
liabilities
IFRS 9 largely retains the existing requirements in IAS 39 for
the classification and measurement of financial liabilities.
However, it eliminates the previous IAS 39 categories for financial
assets of held to maturity, loans and receivables and available for
sale.
Under IFRS 9, on initial recognition, a financial asset is
classified as measured at: amortized cost, fair value through other
comprehensive income (FVOCI), or fair value through profit or loss
(FVTPL). The classification of financial assets under IFRS 9 is
generally based on the business model in which a financial asset is
managed and its contractual cash flow characteristics.
A financial asset is measured at amortized cost if it meets both
of the following conditions and is not designated as at FVTPL:
- it is held within a business model
whose objective is to hold assets to collect contractual cash
flows; and
- its contractual terms give rise on
specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held
for trading, the Company may irrevocably elect to record subsequent
changes in the investment’s fair value in OCI. This election is
made on an investment-by-investment basis.
All financial assets not classified as measured at amortized
cost or FVOCI as described above are measured at FVTPL. This
includes all derivative financial assets. On initial recognition,
the Company may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortized cost
or at FVOCI as at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would otherwise arise.
A financial asset (unless it is a trade receivable without a
significant financing component that is initially measured at the
transaction price) is initially measured at fair value plus, for an
item not at FVTPL, transaction costs that are directly attributable
to its acquisition.
Under IFRS 9, our investments in bond funds will be classified
as fair value through other comprehensive income (FVTOCI). As
permitted by IFRS 9, the Company has designated these investments
at the date of initial application as measured at FVOCI. Unlike IAS
39, the accumulated fair value reserve related to these investments
will never be reclassified to profit or loss.
Under IAS 39 as well as upon adoption of IFRS 9, our derivative
financial instruments have been designated as at FVTPL.
Impairment of financial assets
IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with an
‘expected credit loss’ (ECL) model. The new impairment model
applies to financial assets measured at amortized cost, FVOCI and
contract assets. Under IFRS 9, credit losses are recognized earlier
than under IAS 39.
The Company’s financial assets at amortized cost consist of
trade receivables and cash and cash equivalents. For cash and cash
equivalents the adoption of IFRS 9 did not have any impact
regarding impairment.
Under IFRS 9, loss allowances are measured on either of the
following bases:
- 12-months ECLs: these are ECLs that
result from possible default events within the 12 months after the
reporting date; or
- lifetime ECLs: these are ECLs that
result from all possible default events over the expected life of a
financial instrument.
When determining whether the credit risk of a financial asset
has increased significantly since initial recognition and when
estimating ECLs, the Company considers reasonable and supportable
information that is relevant and available without undue cost or
effort. This includes both quantitative and qualitative information
and analysis, based on the Group’s historical experience and
informed credit assessment and including forward-looking
information.
The Company considers a financial asset to be in default
when:
- the borrower is unlikely to pay its
credit obligations to the Company in full, without recourse by the
Company to actions such as realizing security (if any is held);
or
- the financial asset is more than 90
days past due.
The Company considers an investment to have low credit risk when
its credit risk rating is equivalent to the globally understood
definition of ‘investment grade’. The Company limits its exposure
to credit risk by investing only in bond funds which are fully
guaranteed by the financial institutions and therefore represents
short term credit rating of A-3 based on Standard & Poor’s
or P-2 based on Moody’s.
Trade receivables
The Company measures loss allowances for trade receivables at an
amount equal to lifetime ECLs. ECLs are a probability-weighted
estimate of credit losses. The Company calculates the ECL based on
the risk scoring its customers’ according to an external rating
agency. Following the risk score of each customer, the trade
receivables are clustered into different grades. For each grade,
the ECL is calculated after deducting from trade receivables a loss
allowance based on actual credit loss experience. In addition the
Company uses qualitative assessment of the trade receivables, where
default has incurred.
The Group considers an equity security to have low credit risk
when its credit risk rating is equivalent to the globally
understood definition of ‘investment grade’. The Group limits its
exposure to credit risk by investing only in bond funds which are
fully guaranteed by the financial institutions and therefore
represents short term credit rating of A-3 based on
Standard & Poor’s or P-2 based on Moody’s.
Presentation of impairment
Loss allowances for financial assets measured at amortized cost
are deducted from the gross carrying amount of the assets and
presented within other operating expenses.
Impairment losses on financial assets classified as FVTPL and
FCOCI are presented within the finance expense and other
comprehensive income, respectively.
The following table presents the original measurement categories
under IAS 39 and the new measurement categories under IFRS 9 for
each class of the Company’s financial assets and financial
liabilities as of January 1, 2018.
01/01/2018
Original classificationunder IAS
39
New classificationunder IFRS
9
Originalcarrying
amountunder IAS 39
Newcarrying amountunder
IFRS 9
(€ in thousands) Financial assets 27,063
27,000
Non-current
assets
Equity securities
Available-for-salefinancial assets
FVOCI 5 5 Derivative financial instruments
A financial asset orfinancial liability at
fairvalue through profit or loss
Mandatorily at FVTPL 352 352
Current
assets
Bond funds
Available-for-salefinancial assets
FVOCI 14,044 14,044 Cash and cash equivalents Loans and receivables
Amortized cost 7,569 7,569 Trade receivables Loans and receivables
Amortized cost 5,093 5,030
Financial liabilities
20,416 20,416
Non-current
liabilities
Long-term debt
Financial liabilitiesmeasured at amortized
cost
Amortized cost 16,242 16,242 Finance lease obligation
Financial liabilitiesmeasured at amortized
cost
Amortized cost 171 171
Current
liabilities
Bank overdraft
Financial liabilitiesmeasured at amortized
cost
Amortized cost 58 58 Long-term debt
Financial liabilitiesmeasured at amortized
cost
Amortized cost 796 796 Finance lease obligation
Financial liabilitiesmeasured at amortized
cost
Amortized cost 308 308 Trade payables
Financial liabilitiesmeasured at amortized
cost
Amortized cost 2,841 2,841
Impact of the new impairment model
For assets in the scope of the IFRS 9 impairment model,
impairment losses are generally expected to increase and become
more volatile. The Company has determined that the application of
IFRS 9’s impairment requirements at January 1, 2018 results in an
additional impairment allowance as follows.
(€ in thousands)
Loss allowance at December 31, 2017 under IAS 39 482
Additional impairment recognized at January 1, 2018 on: Trade and
other receivables as at December 31, 2017 62 Additional trade
receivables recognized on adoption of IFRS 15 1
Loss allowance
at January 1, 2018 under IFRS 9 545
The following tables provides information about the exposure to
credit risk and ECLs for trade receivables as of January 1, 2018
and September 30, 2018. This was calculated after a specific
assessment of the trade receivables and after recording a specific
debt allowance.
January 1, 2018
Grades
Equivalent to externalcredit
rating(Standard & Poor’s)
Probability ofdefault Gross
carryingamount Impairment
lossallowance Net carryingamount
(€ in thousands) Grades 1-4: Low risk BBB+ to AAA 0.2% 3,274
5 3,269 Grades 5-7: Fair risk B+ to BBB 1.3% 1,674 22 1,652 Grades
8-9: Substandard CCC- to B 7.0% 363 25 338 Grade 10: Doubtful C to
CC 25.0% 14 3 11 Grade 11: Loss D 100.0%
8 8 --
5,333 63
5,270 September 30, 2018 Grades
Equivalent to externalcredit
rating(Standard & Poor’s)
Probability ofdefault Gross
carryingamount Impairment
lossallowance Net carryingamount
(€ in thousands) Grades 1-4: Low risk BBB+ to AAA 0.2% 2,029
3 2,026 Grades 5-7: Fair risk B+ to BBB 1.3% 1,913 26 1,887 Grades
8-9: Substandard CCC- to B 7.0% 792 55 737 Grade 10: Doubtful C to
CC 25.0% 103 26 77 Grade 11: Loss D 100.0%
11 11 --
4,848 121
4,727
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 September 30, 2018 no options are
exercisable and 372,000 options are outstanding. The
weighted-average contractual life of the options at September 30,
2018 amounts to 8.8 years (September 30, 2017: 9.5 years).
The expenses recognized in the profit and loss statement in
relation to the share-based payment arrangements amounted to
kEUR 178 in the three months and kEUR 477 in the nine
months ended September 30, 2018. (three months and nine months
ended September 30, 2017: kEUR 132 and kEUR 254,
respectively).
4. Inventories
9/30/2018 12/31/2017 (1) (€
in thousands) Raw materials and merchandise 4,185 2,737 Work in
progress 6,501 6,522
Total 10,686 9,259
(1) Comparative figures for the year ended December 31, 2017
were restated for immaterial errors. For further information, see
Notes 1 and 9 of the interim consolidated financial statements.
5. Property, plant and equipment, net
9/30/2018 12/31/2017 (1) (€
in thousands) Land, buildings and leasehold improvements 17,206
17,415 Plant and machinery (includes assets under finance lease)
9,104 8,901 Other facilities, factory and office equipment 1,496
1,625 Assets under construction and prepayments made 108 8
Total 27,914 27,949 Thereof pledged assets of
Property, Plant and Equipment 6,790 7,046
Leased assets included
in Property, Plant and Equipment: 259 881
Printers 106 613 Printers leased to customers under operating lease
-- 97 Other factory equipment 153 171
(1) Comparative figures for the year ended December 31, 2017
were restated for immaterial errors. For further information, see
Notes 1 and 9 of the interim consolidated financial statements.
6. Other liabilities and provisions
9/30/2018 12/31/2017 (€ in
thousands) Customer deposits — 373 Liabilities from VAT 18 12
Employee bonus 285 303 Accruals for vacation and overtime 293 222
Accruals for licenses 134 140 Liabilities from payroll 274 236
Accruals for commissions 80 50 Accruals for compensation of
Supervisory board 175 180 Accrual for warranty 388 286 Others 509
322
Total 2,156 2,124
After the adoption of IFRS 15 customer deposits amounting to
kEUR 556 are presented within contract liabilities.
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.
Carrying amount Fair Value 9/30/2018
FVTPL FVOCI Assets
atamortizedcost Liabilitiesat
amortizedcost Totalcarryingamount
Level 1 Level 2 Level 3 Total
Financial assets measured atfair
value
Non-current
assets
Derivative financial instruments 263 -- -- -- 263 -- 263 -- 263
Equity securities -- 5 -- -- 5 -- -- 5 5
Current
assets
Bond funds -- 9,934 -- -- 9,934 9,934 -- -- 9,934
Financial assets not measuredat
fair value
Current
assets
Cash and cash equivalents -- -- 3,101 -- 3,101 3,101 -- -- 3,101
Trade and other receivables -- -- 4,727 -- 4,727 -- -- -- --
Financial liabilities
notmeasured at fair value
Non-current
liabilities
Long-term debt -- -- -- 16,255 16,255 -- 15,082 -- 15,082 Finance
lease obligation -- -- -- 79 79 -- 76 -- 76
Current
liabilities
Bank overdraft -- -- -- -- -- -- -- -- -- Long-term debt -- -- --
810 810 -- 803 -- 803 Finance lease obligation -- -- -- 130 130 --
128 -- 128 Trade payables -- -- -- 3,250 3,250 -- -- -- --
12/31/2017
A financialasset
orfinancialliabilityat fair
valuethroughprofitor loss
Held-to-maturityinvestments
Available-for-saleinvestments Loans
andreceivables
Financialliabilitiesmeasured atamortized
cost Fair Value Level Assets
Non-current
assets
Equity securities -- -- 5 -- -- 5 Level 3 Derivative financial
instruments 352 -- -- -- -- 352 Level 2
Current
assets
Bond funds -- -- 14,044 -- -- 14,044 Level 1 Cash and cash
equivalents -- -- -- 7,569 -- 7,569 Level 1
Liabilities
Non-current
liabilities
Long-term debt -- -- -- -- 16,242 15,119 Level 2 Finance lease
obligation -- -- -- -- 171 163 Level 2
Current
liabilities
Bank overdraft -- -- -- -- 58 58 Long-term debt -- -- -- -- 796 787
Level 2 Finance lease obligation -- -- -- -- 308 310 Level 2
The fair value of the Company’s investments in the bond funds
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. The fair value of finance lease obligations was determined
using discounted cash flow models on market interest rates
available to the Company for similar transactions at the relevant
date.
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
Three months ended September 30, 2018
2017 (€ in thousands)
Interest
expense
(1,086) (41) Finance lease obligations (20) (22)
Long-term debt (238) (11) Expense from revaluation of derivative
financial instruments (805) -- Other (23) (8)
Interest
income
44 5 Income from bond funds 34 2 Other 10 3
Financial result (1,042) (36) Nine
months ended September 30, 2018 2017 (€ in
thousands)
Interest
expense
(962) (90) Finance lease obligations (79) (39)
Long-term debt (705) (40) Expense from revaluation of derivative
financial instruments (89) -- Other (89) (11)
Interest
income
60 12 Income from bond funds 48 9 Other 12 3
Financial result (902) (78)
9. Correction of errors
During the preparation of the consolidated interim financial
statements for the three-month and nine-month periods ended
September 30, 2018, the Company became aware that the margin within
certain intra-group transactions has not been properly eliminated
in the consolidation process, resulting in misstatement of cost of
sales in its consolidated financial statements since the first
quarter in fiscal year 2017. These errors have been corrected by
restating each of the affected financial statement line items for
prior periods. The Company has evaluated the effect of these
errors, both qualitatively and quantitatively, and concluded
that the corrections did not have a material impact on,
nor require amendment of, any previously filed financial
statements. The following tables summarize the impacts on the
Company’s consolidated financial statements.
Consolidated statement of financial position
March 31, 2017 Impact of correction of error
As previouslyreported Adjustments
As corrected (€ in thousands)
Current assets 33,601 (65) 33,536
Inventories 9,475 (65) 9,410
Non-current assets
28,003 — 28,003 Property, plant and equipment
26,872 — 26,872
Total assets 61,604
(65) 61,539 Equity 49,120
(65) 49,055 Accumulated deficit (31,400) (65)
(31,465)
Total equity and liabilities 61,604
(65) 61,539
June 30, 2017 Impact of correction of error As
previouslyreported Adjustments As
corrected (€ in thousands) Current assets
30,937 (121) 30,816 Inventories 9,507 (121)
9,386
Non-current assets 28,300 —
28,300 Property, plant and equipment 27,010 — 27,010
Total assets 59,237 (121) 59,116
Equity 46,883 (121) 46,762 Accumulated
deficit (34,067) (121) (34,188)
Total equity and
liabilities 59,237 (121) 59,116
September 30, 2017 Impact of correction of error
As previouslyreported Adjustments As
corrected (€ in thousands) Current assets
29,840 (187) 29,653 Inventories 9,391 (187)
9,204
Non-current assets 28,990 —
28,990 Property, plant and equipment 27,617 — 27,617
Total assets 58,830 (187) 58,643
Equity 46,122 (187) 45,935 Accumulated
deficit (35,022) (187) (35,209)
Total equity and
liabilities 58,830 (187) 58,643
December 31, 2017 Impact of correction of error As
previouslyreported Adjustments As
corrected (€ in thousands) Current assets
37,774 (280) 37,494 Inventories 9,539 (280)
9,259
Non-current assets 29,257 251
29,508 Property, plant and equipment 27,698 251 27,949
Total assets 67,031 (29) 67,002
Equity 43,918 (29) 43,889
Accumulated deficit (37,480) (29) (37,509)
Total equity
and liabilities 67,031 (29) 67,002
March 31, 2018 Impact of correction of error As
previouslyreported Adjustments As
corrected (€ in thousands) Current assets
38,347 (417) 37,930 Inventories 11,309 (417)
10,892
Non-current assets 29,360 254
29,614 Property, plant and equipment 26,792 254 27,046
Total assets 67,707 (163) 67,544
Equity 42,223 (163) 42,060
Accumulated deficit (39,219) (163) (39,382)
Total equity
and liabilities 67,707 (163) 67,544
June 30, 2018 Impact of correction of error As
previouslyreported Adjustments As
corrected (€ in thousands) Current assets
35,781 (623) 35,158 Inventories 13,116 (623)
12,493
Non-current assets 29,056 257
29,313 Property, plant and equipment 26,550 257 26,807
Total assets 64,837 (366) 64,471
Equity 39,633 (366) 39,267
Accumulated deficit (41,958) (366) (42,324)
Total equity
and liabilities 64,837 (366) 64,471
Consolidated statement of comprehensive loss
Impact of correction of error three months ended
March 31, 2017 As previouslyreported
Adjustments As corrected (€ in thousands
except share and share data) Cost of sales (2,949) (65)
(3,014)
Gross profit 1,581 (65) 1,516
Operating loss (2,388) (65) (2,453)
Net loss (2,431) (65) (2,496) Total
comprehensive loss (2,416) (65) (2,481)
Loss attributable to owners of the company
(2,429) (65) (2,494) Total comprehensive
loss attributable to owners of the company (2,414)
(65) (2,479) Loss per share - basic/ diluted
(EUR) (0.65) (0.02) (0.67)
Impact of correction of error Impact of correction of
error three months ended June 30, 2017 six months
ended June 30, 2017 As previously As previously
reported Adjustments As corrected
reported Adjustments As corrected (€ in
thousands exceptshare and share data) (€ in thousands
exceptshare and share data) Cost of sales (3,043)
(56) (3,099) (5,992) (121) (6,113)
Gross profit 2,110
(56) 2,054 3,691 (121) 3,570
Operating loss (2,675) (56) (2,731)
(5,063) (121) (5,184) Net loss
(2,674) (56) (2,730) (5,105)
(121) (5,226) Total comprehensive loss
(2,359) (56) (2,415) (4,775)
(121) (4,896) Loss attributable to owners
of the company (2,667) (56) (2,723)
(5,096) (121) (5,217)
Total comprehensive loss attributable
toowners of the company
(2,352) (56) (2,408) (4,766)
(121) (4,887) Loss per share - basic/ diluted
(EUR) (0.72) (0.01) (0.73) (1.37) (0.03) (1.40)
Impact of
correction of error Impact of correction of error
three months ended September 30, 2017 nine months ended
September 30, 2017 As previously As previously
reported Adjustments As corrected
reported Adjustments As corrected (€ in
thousands exceptshare and share data) (€ in thousands
exceptshare and share data) Cost of sales (4,170)
(66) (4,236) (10,162) (187) (10,349)
Gross profit
3,217 (66) 3,151 6,908 (187)
6,721 Operating loss (924) (66)
(990) (5,987) (187) (6,174) Net
loss (960) (66) (1,026) (6,065)
(187) (6,252) Total comprehensive loss
(893) (66) (959) (5,668) (187)
(5,855) Loss attributable to: Loss
attributable to owners of the company (955) (66)
(1,021) (6,051) (187) (6,238)
Total comprehensive loss attributable
toowners of the company
(888) (66) (954) (5,654) (187)
(5,841) Loss per share - basic/ diluted (EUR) (0.26)
(0.01) (0.27) (1.63) (0.05) (1.68)
Impact of correction
of error Impact of correction of error three months
ended December 31, 2017 year ended December 31, 2017
As previously As previously reported
Adjustments As corrected reported
Adjustments As corrected (€ in thousands
exceptshare and share data) (€ in thousands
exceptshare and share data) Cost of sales (3,662)
158 (3,504) (13,824) (29) (13,853)
Gross profit 2,446
158 2,604 9,354 (29) 9,325
Operating loss (2,633) 158 (2,475)
(8,620) (29) (8,649) Net loss
(2,460) 158 (2,302) (8,525) (29)
(8,554) Total comprehensive loss (2,352)
158 (2,194) (8,020) (29) (8,049)
Loss attributable to owners of the company
(2,458) 158 (2,300) (8,509) (29)
(8,538)
Total comprehensive loss attributable
toowners of the company
(2,350) 158 (2,192) (8,004) (29)
(8,033) Loss per share - basic/ diluted (EUR) (0.66)
0.04 (0.62) (2.29) (0.01) (2.30)
Impact of
correction of error three months ended March 31, 2018
As previously reported Adjustments As
corrected (€ in thousands except share and share data)
Cost of sales (2,785) (134) (2,919)
Gross profit
2,267 (134) 2,133 Operating loss
(2,254) (134) (2,388) Net loss
(1,582) (134) (1,716) Total comprehensive
loss (1,661) (134) (1,795) Loss
attributable to owners of the company (1,576)
(134) (1,710) Total comprehensive loss
attributable to owners of the company (1,655)
(134) (1,789) Loss per share - basic/ diluted
(EUR) (0.42) (0.04) (0.46)
Impact of correction of
error Impact of correction of error three
months ended June 30, 2018 six months ended June 30,
2018 As previously As previously
reported Adjustments As corrected
reported Adjustments As corrected (€ in
thousands exceptshare and share data) (€ in thousands
exceptshare and share data) Cost of sales (3,209)
(201) (3,410) (5,994) (337) (6,331)
Gross profit
2,053 (201) 1,852 4,320 (337)
3,983 Operating loss (2,203) (201)
(2,404) (4,457) (337) (4,794) Net
loss (2,748) (201) (2,949) (4,330)
(337) (4,667) Total comprehensive loss
(2,760) (201) (2,961) (4,421)
(337) (4,758) Loss attributable to owners
of the company (2,739) (201) (2,940)
(4,315) (337) (4,652)
Total comprehensive loss attributable
toowners of the company
(2,751) (201) (2,952) (4,406)
(337) (4,743) Loss per share - basic/ diluted
(EUR) (0.74) (0.05) (0.79) (1.16) (0.09) (1.25)
Segment reporting
Impact of correction of error three months ended March
31, 2017 As previously reported
Adjustments As corrected (€ in thousands)
SYSTEMS SERVICES SYSTEMS SERVICES
SYSTEMS SERVICES Revenues 1,693 2,837 — — 1,693 2,837
Gross profit 353 1,228 12 (77) 365 1,151 Gross profit in %
20.9 % 43.3 % 21.6 % 40.6 %
Impact of correction of error
three months ended June 30, 2017 As previously
reported Adjustments As corrected (€ in
thousands) SYSTEMS SERVICES SYSTEMS
SERVICES SYSTEMS SERVICES Revenues 2,542 2,611
— — 2,542 2,611 Gross profit 925 1,185 22 (78) 947 1,107
Gross profit in % 36.4 % 45.4 % 37.3 % 42.4 %
Impact of
correction of error six months ended June 30, 2017 As
previously reported Adjustments As
corrected (€ in thousands) SYSTEMS
SERVICES SYSTEMS SERVICES SYSTEMS
SERVICES Revenues 4,235 5,448 — — 4,235 5,448 Gross
profit 1,278 2,413 34 (155) 1,312 2,258 Gross profit in % 30.2 %
44.3 % 31.0 % 41.4 %
Impact of correction of error three
months ended September 30, 2017 As previously
reported Adjustments As corrected (€ in
thousands) SYSTEMS SERVICES SYSTEMS
SERVICES SYSTEMS SERVICES Revenues 4,153 3,234
— — 4,153 3,234 Gross profit 1,584 1,633 33 (99) 1,617 1,534
Gross profit in % 38.1 % 50.5 % 38.9 % 47.4 %
Impact of
correction of error nine months ended September 30, 2017 As
previously reported Adjustments As
corrected (€ in thousands) SYSTEMS
SERVICES SYSTEMS SERVICES SYSTEMS
SERVICES Revenues 8,388 8,682 — — 8,388 8,682 Gross
profit 2,862 4,046 67 (254) 2,929 3,792 Gross profit in % 34.1 %
46.6 % 34.9 % 43.7 %
Impact of correction of error three
months ended December 31, 2017 As previously
reported Adjustments As corrected (€ in
thousands) SYSTEMS SERVICES SYSTEMS
SERVICES SYSTEMS SERVICES Revenues 3,146 2,962
— — 3,146 2,962 Gross profit 1,059 1,387 270 (112) 1,329
1,275 Gross profit in % 33.7 % 46.8 % 42.2 % 43.0 %
Impact of correction of error year ended December 31, 2017
As previously reported Adjustments As
corrected (€ in thousands) SYSTEMS
SERVICES SYSTEMS SERVICES SYSTEMS
SERVICES Revenues 11,534 11,644 — — 11,534 11,644
Gross profit 3,921 5,433 337 (366) 4,258 5,067 Gross profit in %
34.0 % 46.7 % 36.9 % 43.5 %
Impact of correction of error
three months ended March 31, 2018 As previously
reported Adjustments As corrected (€ in
thousands) SYSTEMS SERVICES SYSTEMS
SERVICES SYSTEMS SERVICES Revenues 1,375 3,677
— — 1,375 3,677 Gross profit 429 1,838 (48) (86) 381 1,752
Gross profit in % 31.2 % 50.0 % 27.7 % 47.6 %
Impact of
correction of error three months ended June 30, 2018 As
previously reported Adjustments As
corrected (€ in thousands) SYSTEMS
SERVICES SYSTEMS SERVICES SYSTEMS
SERVICES Revenues 1,883 3,379 — — 1,883 3,379 Gross
profit 561 1,492 (87) (114) 474 1,378 Gross profit in % 29.8 % 44.2
% 25.2 % 40.8 %
Impact of correction of error six months
ended June 30, 2018 As previously reported
Adjustments As corrected (€ in thousands)
SYSTEMS SERVICES SYSTEMS SERVICES
SYSTEMS SERVICES Revenues 3,258 7,056 — — 3,258 7,056
Gross profit 990 3,330 (136) (201) 854 3,129 Gross profit in
% 30.4 % 47.2 % 26.2 % 44.3 %
There is no impact on the Company’s operating, investing or
financing cash flows for the 9-months period ended September 30,
2017.
10. 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 September 30, 2018
2017 (1) (€ in thousands) SYSTEMS
SERVICES SYSTEMS SERVICES Revenues 3,744 3,377
4,153 3,234 Gross profit 1,197 1,114 1,617 1,534 Gross
profit in % 32.0 % 33.0 % 38.9 % 47.4 %
Nine months ended
September 30, 2018 2017 (1) (€ in
thousands) SYSTEMS SERVICES SYSTEMS
SERVICES Revenues 7,002 10,433 8,388 8,682 Gross
profit 2,051 4,243 2,929 3,792 Gross profit in % 29.3 % 40.7 % 34.9
% 43.7 %
(1) Comparative figures for the 3-month and 9-month periods
ended September 30, 2017 were restated for immaterial errors. For
further information, see Notes 1 and 9 of the interim
consolidated financial statements.
11. Revenues
Three months ended September 30,
Nine months ended September 30, 2018 2017
2018 2017 (€ in thousands) (€ in
thousands) EMEA 2,935 5,660 9,757
12,053 Germany 1,546 1,202 4,284 4,656 France 397 1,077
2,146 2,105 Sweden 46 1,167 209 1,367 Others 946 2,214 3,118 3,925
Asia Pacific 2,269 653 3,486
1,933 Indonesia 1,758 32 1,784 91 China 132 204 460 1,137
South Korea 361 400 667 656 Others 18 17 575 49
Americas
1,917 1,074 4,192 3,084 United States
1,871 911 4,125 2,742 Others 46 163 67 342
Total
7,121 7,387 17,435 17,070
12. Commitments, contingent assets and liabilities
In March 2018, ExOne GmbH, a subsidiary of The ExOne Company,
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.
13. Subsequent events
On October 17, 2018, voxeljet issued 972,000 ordinary
shares, equivalent to 4,860,000 American Depository Shares (“ADS”),
at an offering price of USD 2.57 per ADS (the “Public Offering
Price”). The Company received net proceeds of approximately
EUR 9.2 million. Members of our management board, who are also
significant shareholders, purchased an aggregate number of 233,462
ADSs in this offering at the Public Offering Price.
On November 8, 2018, voxeljet closed the over-allotment
transaction in which it issued additional 144,000 ordinary shares,
equivalent to 720,000 ADSs, upon the exercise of the over-allotment
option exercised by the underwriter on November 1, 2018. The
Company received net proceeds of approximately EUR 1.4 million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181127005820/en/
Investors and MediaJohannes PeschDirector Investor
Relations and Business Developmentjohannes.pesch@voxeljet.deOffice:
+49 821 7483172Mobile: +49 176 45398316
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