EX-99.1 2 vjet-20190331ex991067372.htm EX-99.1 vjet_Ex99_1_Q1

 

Exhibit 99.1

 

Picture 1

 

voxeljet AG Reports Financial Results for the First Quarter Ended March 31, 2019

 

Friedberg, Germany, May 16, 2019 — voxeljet AG (NYSE: VJET) (the “Company”, or “voxeljet”), a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, today announced consolidated financial results for the first quarter ended March 31, 2019.

 

Highlights - First Quarter 2019(1)

 

·

Total revenues for the first quarter increased 10.2% to kEUR 5,565 from kEUR 5,052

·

Gross profit margin decreased to 34.4% from 42.2% to kEUR 1,913 from kEUR 2,133

·

Systems revenues increased 75.6% to kEUR 2,415 from kEUR 1,375

·

Services revenues decreased 14.3% to kEUR 3,150 from kEUR 3,677

·

Reaffirm full year 2019 guidance

 

(1)Certain comparative figures for the 3-month period ended March  31, 2018 were restated for immaterial errors. For further information, see Note 9 of the Q3-2018 condensed consolidated interim financial statements.

 

 

Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented, “We had a strong first quarter with results that confirm why we are so excited about our potential to establish a new manufacturing standard. Just recently, we installed the first print engine into VJET X: This print engine is the heart of our new additive mass manufacturing solution and I firmly believe one of the most advanced piece of technology in the whole additive manufacturing industry. The shifts we have made to our business and our deeper focus on the three core areas of innovation, integration and speed are igniting the next phase of growth and profitability for voxeljet.”

 

First Quarter 2019 Results

 

Revenues for the first quarter of 2019 increased by 10.2% to kEUR 5,565 compared to kEUR 5,052 in the first quarter of 2018.

 

Revenues from our Systems segment, which focuses on the development, production and sale of 3D printers, increased 75.6% to kEUR 2,415 in the first quarter of 2019 from kEUR 1,375 in last year’s first quarter. The Company delivered two new and one used and refurbished 3D printer in the first quarter of 2019, compared to two used and refurbished printers delivered in last year’s first quarter. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. The increase of revenues from our Systems segment was mainly due to higher revenues from Systems-related revenues, while revenue from the sale of 3D printers slightly increased. The increase of Systems-related revenues reflects the higher installed base of 3D printers in the market and the associated growth in aftersales activities. Systems revenues represented 43.4% of total revenues in the first quarter of 2019 compared to 27.2% in last year’s first quarter.

 

Revenues from our Services segment, which focuses on the printing of on-demand parts for our customers, decreased 14.3% to kEUR 3,150 in the first quarter of 2019 from kEUR 3,677 in the comparative period of 2018. This was mainly due to lower revenue contributions from our German operation. We received a lower number of orders mainly reflecting a lower demand from the automotive industry. This was partially offset by increased revenue contributions from our subsidiary voxeljet America Inc. (“voxeljet America”). The increase in revenue at our American service center was mainly attributable to a volume contract which we entered into during the second quarter of 2018.

 

Cost of sales was kEUR 3,652 for the first quarter of 2019 compared to kEUR 2,919 for the first quarter of 2018.

 


 

Gross profit and gross profit margin were kEUR 1,913 and 34.4%, respectively, in the first quarter of 2019 compared to kEUR 2,133 and 42.2%, respectively in the first quarter of 2018.  

 

Gross profit for our Systems segment increased to kEUR 829 in the first quarter of 2019 from kEUR 381 in the first quarter of 2018. Gross profit margin for this segment increased to 34.3% in the first quarter of 2019 compared to 27.7% in the first quarter of 2018.  This was mainly due to higher gross profit margin contributions from Systems-related revenues resulting from a more favorable ratio of revenues to fixed costs compared to last year’s first quarter.

 

Gross profit for our Services segment significantly decreased to kEUR 1,084 in the first quarter of 2019 compared to kEUR 1,752 in the first quarter of 2018.  The gross profit margin for this segment decreased to 34.4% in the first quarter of 2019 from 47.6% in the first quarter of 2018. This was mainly related to lower gross profit margin from the German service center as a result of lower utilization. Our subsidiary voxeljet America also contributed lower gross profit margin due to higher depreciation expense, as we added additional 3D printers to our American service center during the third quarter of 2018, including one VX4000 system.

 

Selling expenses remained nearly unchanged at kEUR 1,676 for the first quarter of 2019 compared to kEUR 1,736 in the first quarter of 2018, despite an increase in revenues. We incurred higher shipping and packaging expenses, which vary from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are being delivered.

 

Administrative expenses were kEUR 1,439 for the first quarter of 2019 compared to kEUR 1,232 in the first quarter of 2018.  This was mainly due to an increase in headcount resulting in higher personnel expenses as part of management’s remediation efforts on the material weakness identified in the prior year. In addition, we incurred higher consulting fees as part of our project to expand our Enterprise Resource Planning (“ERP”) system. We have hired additional employees in the IT-Team for the management of SAP ERP system related tasks.

 

Research and development (“R&D”) expenses increased to kEUR 1,705 in the first quarter of 2019 from kEUR 1,597 in the first quarter of 2018. The increase of kEUR 108 was mainly due to higher personnel expenses as a result of a slight increase in headcount.

 

Other operating expenses in the first quarter of 2019 were kEUR 13 compared to kEUR 358 in the prior year period. This was mainly due to lower losses from foreign currency transaction for the first quarter of 2019 compared to the first quarter of 2018.

 

Other operating income was kEUR 978 for the first quarter of 2019 compared to kEUR 402 in the first quarter of 2018. The increase was mainly due to higher gains from foreign currency transactions.

 

The changes in foreign currency gains and losses were primarily driven by the valuation of the intercompany loans granted by the parent company to our UK and US subsidiaries.

 

Operating loss was kEUR 1,942 in the first quarter of 2019, compared to an operating loss of kEUR 2,388 in the comparative period in 2018. The improvement was primarily related to a significant increase of other operating income partially offset by a lower gross profit. 

 

Financial result was negative kEUR 858 in the first quarter of 2019, compared to a financial result of positive kEUR 678 in the comparative period in 2018. The significant decrease was mainly driven by the revaluation of the derivative financial instruments in connection with the European Investment Bank loan.

 

Net loss for the first quarter of 2019 was kEUR 2,788 or EUR 0.57 per share, as compared to net loss of kEUR 1,716, or EUR 0.46 per share, in the first quarter of 2018.  

 

Based on a conversion rate of five American Depositary Shares (“ADSs”) per ordinary share, net loss was at EUR 0.11 per ADS for the first quarter of 2019, compared to a net loss of EUR 0.09 per ADS for the first quarter of 2018. Earnings per share is computed by dividing net income attributable to stockholders of the parent by the weighted-average number of ordinary shares outstanding during the periods. Earnings per ADS is calculated by dividing the above earnings per share by five as each ordinary share represents five ADSs.


 

Business Outlook

 

Our revenue guidance for the second quarter of 2019 is expected to be in the range of kEUR 5,000 to kEUR 5,250.  

 

We reaffirm our guidance for the full year ending December 31, 2019:

 

-

Full year revenue is expected to be in the range of kEUR 27,000 to kEUR 30,000

-

Gross margin is expected to be above 40%

-

Operating expenses for the full year are expected as follows: selling and administrative expenses are expected to be in the range of kEUR 12,000 to kEUR 12,500 and R&D expenses are projected to be between approximately kEUR 5,500 and kEUR 6,000. Depreciation and amortization expense is expected to be between kEUR 3,750 and kEUR 4,000.

-

Adjusted EBITDA for the second half of the year ending December 31, 2019 is expected to be neutral-to-positive. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles before interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other operating (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries.

-

Capital expenditures are projected to be in the range of kEUR 2,000 to kEUR 2,500, which primarily includes ongoing investments in our global subsidiaries.

 

Our total backlog of 3D printer orders at March 31, 2019 was kEUR 3,422, which represents six 3D printers. This compares to a backlog of kEUR 3,392 representing six 3D printers, at December 31, 2018. As production and delivery of our printers is generally characterized by lead times ranging between three to nine months, the conversion rate of order backlog into revenue is dependent on the equipping process for the respective 3D printer as well as the timing of customers’ requested deliveries.

 

At March 31, 2019, we had cash and cash equivalents of kEUR 8,482 and held kEUR 8,924 of investments in bond funds and kEUR 1,253 in one note receivable, which are included in current financial assets on our consolidated statements of financial position.

 

Webcast and Conference Call Details

 

The Company will host a conference call and webcast to review the results for the first quarter on Friday, May 17, 2019 at 8:30 a.m. Eastern Time. Participants from voxeljet will include its Chief Executive Officer, Dr. Ingo Ederer, and its Chief Financial Officer, Rudolf Franz, who will provide a general business update and respond to investor questions.

 

Interested parties may access the live audio broadcast by dialing 1-877-705-6003 in the United States/Canada, or 1-201-493-6725 for international, Conference Title “voxeljet AG First Quarter 2019 Financial Results Conference Call”. Investors are requested to access the call at least five minutes before the scheduled start time in order to complete a brief registration. An audio replay will be available approximately two hours after the completion of the call at 1-844-512-2921 or 1-412-317-6671, Replay Conference ID number 13690018. The recording will be available for replay through May 24, 2019.

 

A live webcast of the call will also be available on the investor relations section of the Company’s website. Please go to the website https://event.webcasts.com/starthere.jsp?ei=1241565&tp_key=90fb6173de at least fifteen minutes prior to the start of the call to register, download and install any necessary audio software. A replay will also be available as a webcast on the investor relations section of the Company’s website.        

 

 

Non-IFRS Measure

The Company uses Adjusted EBITDA as a supplemental financial measure of its financial performance. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles, interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries. Management believes Adjusted EBITDA to be an important financial measure because it excludes the effects of fluctuating foreign exchange gains or


 

losses on the intercompany loans granted to its subsidiaries. We are unable to reasonably estimate the potential full-year financial impact of foreign currency translation because of volatility in foreign exchange rates. Therefore, we are unable to provide a reconciliation our forward-looking guidance for non-GAAP Adjusted EBITDA without unreasonable effort as certain information necessary to calculate such measure on an IFRS basis is unavailable, dependent on future events outside of our control and cannot be predicted without unreasonable efforts by the Company.  

 

Management regularly uses both IFRS and non-IFRS results and expectations internally to assess its overall performance of the business, making operating decisions, and forecasting and planning for future periods. Management believes that Adjusted EBITDA is a useful financial measure to the Company’s investors as it helps investors better understand and evaluate the projections our management board provides. The Company’s calculation of Adjusted EBITDA may not be comparable to similarly titled financial measures reported by other peer companies. Adjusted EBITDA should not be considered as a substitute to financial measures prepared in accordance with IFRS.

 

 

Exchange rate

 

This press release contains translations of certain U.S. dollar amounts into euros at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from U.S. dollars to euros in this press release were made at a rate of USD 1.1235 to EUR 1.00, the noon buying rate of the Federal Reserve Bank of New York for the euro on March 31, 2019. 


 

About voxeljet

 

voxeljet is a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers. The Company’s 3D printers employ a powder binding, additive manufacturing technology to produce parts using various material sets, which consist of particulate materials and proprietary chemical binding agents. The Company provides its 3D printers and on-demand parts services to industrial and commercial customers serving the automotive, aerospace, film and entertainment, art and architecture, engineering and consumer product end markets. For more information, visit http://www.voxeljet.de/en/.

 

Cautionary Statement on Forward-Looking Statements

 

This press release contains forward-looking statements concerning our business, operations and financial performance. Any statements that are not of historical facts may be deemed to be forward-looking statements. You can identify these forward-looking statements by words such as ‘‘believes,’’ ‘‘estimates,’’ ‘‘anticipates,’’ ‘‘expects,’’ ‘‘projects,’’ ‘‘plans,’’ ‘‘intends,’’ ‘‘may,’’ ‘‘could,’’ ‘‘might,’’ ‘‘will,’’ ‘‘should,’’ ‘‘aims,’’ or other similar expressions that convey uncertainty of future events or outcomes. Forward-looking statements include statements regarding our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations concerning, among other things, our results of operations, financial condition, business outlook, the industry in which we operate and the trends that may affect the industry or us. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that forward-looking statements are not guarantees of future performance. All of our forward-looking statements are subject to known and unknown risks, uncertainties and other factors that are in some cases beyond our control and that may cause our actual results to differ materially from our expectations, including those risks identified under the caption “Risk Factors” in the Company’s Annual Report on Form 20-F and in other reports the Company files with the U.S. Securities and Exchange Commission, as well as the risk that our revenues may fall short of the guidance we have provided in this press release.  Except as required by law, the Company undertakes no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

 

Contact

 

Investors and Media

 

Johannes Pesch

Director Investor Relations and Business Development

johannes.pesch@voxeljet.de

Office: +49 821 7483172

Mobile: +49 176 45398316


 

voxeljet AG
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

 

 

 

 

 

 

 

 

 

    

Notes

    

3/31/2019

    

12/31/2018 (1)

 

 

 

 

 

(€ in thousands)

 

 

 

 

 

unaudited

 

 

 

Current assets

 

 

 

36,519

 

37,936

 

Cash and cash equivalents

 

 7

 

8,482

 

7,402

 

Financial assets

 

 7

 

10,177

 

12,905

 

Trade receivables, net

 

 

 

4,857

 

6,030

 

Inventories

 

 4

 

11,156

 

10,064

 

Income tax receivables

 

 

 

37

 

13

 

Other assets

 

 

 

1,810

 

1,522

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

35,371

 

31,416

 

Financial assets

 

 7

 

1,632

 

2,234

 

Intangible assets

 

 

 

1,404

 

1,420

 

Property, plant and equipment, net

 

2, 5

 

32,255

 

27,675

 

Investments in joint venture

 

 

 

32

 

33

 

Other assets

 

 

 

48

 

54

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

71,890

 

69,352

 

 

 

 

 

 

 

 

 

 

 

    

Notes

    

3/31/2019

    

12/31/2018 (1)

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

6,732

 

6,302

 

Trade payables

 

7

 

2,507

 

2,945

 

Contract liabilities

 

7

 

1,027

 

817

 

Financial liabilities

 

2, 7

 

1,377

 

850

 

Other liabilities and provisions

 

 6

 

1,821

 

1,690

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

20,780

 

16,575

 

Deferred tax liabilities

 

 

 

63

 

76

 

Financial liabilities

 

2, 7

 

20,539

 

16,321

 

Other liabilities and provisions

 

 6

 

178

 

178

 

 

 

 

 

 

 

 

 

Equity

 

 

 

44,378

 

46,475

 

Subscribed capital

 

 

 

4,836

 

4,836

 

Capital reserves

 

 

 

87,572

 

86,803

 

Accumulated deficit

 

 

 

(49,184)

 

(46,400)

 

Accumulated other comprehensive income

 

 

 

907

 

1,201

 

Equity attributable to the owners of the company

 

 

 

44,131

 

46,440

 

Non-controlling interest

 

 

 

247

 

35

 

Total equity and liabilities

 

 

 

71,890

 

69,352

 

 

 

 

See accompanying notes to unaudited condensed consolidated interim financial statements.

 

(1)The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in retained earnings at the date of initial application. For further information, see Note 2 of the condensed consolidated interim financial statements.

 

 


 

voxeljet AG
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 

 

    

Notes

    

2019

    

2018 (1) (2)

 

 

 

 

(€ in thousands except share and share data)

Revenues

 

9, 10

 

5,565

 

5,052

Cost of sales

 

 

 

(3,652)

 

(2,919)

Gross profit

 

9

 

1,913

 

2,133

Selling expenses

 

 

 

(1,676)

 

(1,736)

Administrative expenses

 

 

 

(1,439)

 

(1,232)

Research and development expenses

 

 

 

(1,705)

 

(1,597)

Other operating expenses

 

 

 

(13)

 

(358)

Other operating income

 

 

 

978

 

402

Operating loss

 

 

 

(1,942)

 

(2,388)

Finance expense

 

8

 

(917)

 

(268)

Finance income

 

8

 

59

 

946

Financial result

 

8

 

(858)

 

678

Loss before income taxes

 

 

 

(2,800)

 

(1,710)

Income taxes

 

 

 

12

 

(6)

Net loss

 

 

 

(2,788)

 

(1,716)

 

 

 

 

 

 

 

Debt investment at FVOCI - net change in fair value

 

 

 

106

 

(15)

Foreign currency translation differences

 

 

 

(400)

 

(64)

Other comprehensive income

 

 

 

(294)

 

(79)

Total comprehensive loss

 

 

 

(3,082)

 

(1,795)

 

 

 

 

 

 

 

Loss attributable to:

 

 

 

 

 

 

Owners of the Company

 

 

 

(2,784)

 

(1,710)

Non-controlling interests

 

 

 

(4)

 

(6)

 

 

 

 

(2,788)

 

(1,716)

 

 

 

 

 

 

 

Total comprehensive loss attributable to:

 

 

 

 

 

 

Owners of the Company

 

 

 

(3,078)

 

(1,789)

Non-controlling interests

 

 

 

(4)

 

(6)

 

 

 

 

(3,082)

 

(1,795)

 

 

 

 

 

 

 

Weighted average number of ordinary shares outstanding

 

 

 

4,836,000

 

3,720,000

Loss per share - basic/ diluted (EUR)

 

 

 

(0.58)

 

(0.46)

 

 

 

See accompanying notes to unaudited condensed consolidated interim financial statements.

 

(1)The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in retained earnings at the date of initial application. For further information, see Note 2 of the condensed consolidated interim financial statements.

 

(2)Certain comparative figures for the 3-month period ended March 31, 2018 were restated for immaterial errors. For further information, see Note 9 of the Q3-2018 condensed consolidated interim financial statements.

 

 


 

voxeljet AG
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to the owners of the company

 

 

 

 

 

    

 

    

 

    

 

    

Accumulated

 

 

    

 

 

 

 

 

 

 

 

 

 

 

other

 

 

 

 

 

 

 

 

Subscribed

 

Capital

 

Accumulated

 

comprehensive

 

 

 

Non-controlling

 

 

(€ in thousands)

    

capital

 

reserves

 

deficit

 

gain (loss)

    

Total

 

interests

    

Total equity

Balance at December 31, 2017 (2)

 

3,720

 

76,227

 

(37,480)

 

1,380

 

43,847

 

71

 

43,918

Adjustment on initial application of IFRS 15

 

--

 

--

 

(100)

 

--

 

(100)

 

--

 

(100)

Adjustment on initial application of IFRS 9

 

--

 

--

 

(63)

 

--

 

(63)

 

--

 

(63)

Adjusted balance at January 1, 2018 (2)

 

3,720

 

76,227

 

(37,643)

 

1,380

 

43,684

 

71

 

43,755

Loss for the period

 

--

 

--

 

(1,710)

 

--

 

(1,710)

 

(6)

 

(1,716)

Net changes in fair value of debt investments at FVOCI

 

--

 

--

 

--

 

(15)

 

(15)

 

--

 

(15)

Foreign currency translations

 

--

 

--

 

--

 

(64)

 

(64)

 

--

 

(64)

Equity-settled share-based payment

 

--

 

129

 

--

 

--

 

129

 

--

 

129

Balance at March 31, 2018 (2)

 

3,720

 

76,356

 

(39,353)

 

1,301

 

42,024

 

65

 

42,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to the owners of the company

 

 

 

 

 

    

 

    

 

    

 

    

Accumulated

 

 

    

 

 

 

 

 

 

 

 

 

 

 

other

 

 

 

 

 

 

 

 

Subscribed

 

Capital

 

Accumulated

 

comprehensive

 

 

 

Non-controlling

 

 

(€ in thousands)

    

capital

 

reserves

 

deficit

 

gain (loss)

    

Total

 

interests

    

Total equity

Balance at December 31, 2018 (1)

 

4,836

 

86,803

 

(46,400)

 

1,201

 

46,440

 

35

 

46,475

Loss for the period

 

--

 

--

 

(2,784)

 

--

 

(2,784)

 

(4)

 

(2,788)

Net changes in fair value of debt investments at FVOCI

 

--

 

--

 

--

 

106

 

106

 

--

 

106

Foreign currency translations

 

--

 

--

 

--

 

(400)

 

(400)

 

--

 

(400)

Equity-settled share-based payment

 

--

 

165

 

--

 

--

 

165

 

--

 

165

Share-based payment transaction with the non-controlling shareholder of a subsidiary

 

--

 

604

 

--

 

--

 

604

 

216

 

820

Balance at March 31, 2019

 

4,836

 

87,572

 

(49,184)

 

907

 

44,131

 

247

 

44,378

 

 

 

See accompanying notes to unaudited condensed consolidated interim financial statements.

 

(1)The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in retained earnings at the date of initial application. For further information, see Note  2 of the condensed consolidated interim financial statements.

 

(2)Certain comparative figures for the 3-month period ended March 31, 2018 were restated for immaterial errors. For further information, see Note 9 of the Q3-2018 condensed consolidated interim financial statements.

 

 


 

voxeljet AG
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

 

 

 

 

 

Three months ended March 31, 

 

    

2019

    

2018 (1) (2)

 

 

(€ in thousands)

Cash Flow from operating activities

 

 

 

 

 

 

 

 

 

Loss for the period

 

(2,788)

 

(1,716)

 

 

 

 

 

Depreciation and amortization

 

1,050

 

841

Foreign currency exchange differences on loans to subsidiaries

 

(769)

 

(61)

Share-based compensation expense

 

165

 

129

Change in impairment of trade receivables

 

(28)

 

10

Non-cash interest expense on long-term debt

 

205

 

189

Change in fair value of derivative equity forward

 

602

 

(941)

Change in inventory allowance

 

(9)

 

(226)

Other

 

--

 

 9

 

 

 

 

 

Change in working capital

 

(265)

 

1,578

Trade and other receivables, inventories and current assets

 

61

 

(901)

Trade payables

 

(586)

 

(260)

Other liabilities, contract liabilities and provisions

 

284

 

2,739

Income tax payable/receivables

 

(24)

 

--

Net cash used in operating activities

 

(1,837)

 

(188)

 

 

 

 

 

Cash Flow from investing activities

 

 

 

 

 

 

 

 

 

Payments to acquire property, plant and equipment and intangible assets

 

(173)

 

(234)

Proceeds from disposal of financial assets

 

4,081

 

2,526

Payments to acquire financial assets

 

(1,235)

 

(6,170)

Proceeds from disposal of property, plant and equipment

 

22

 

--

Net cash from (used in) investing activities

 

2,695

 

(3,878)

 

 

 

 

 

Cash Flow from financing activities

 

 

 

 

 

 

 

 

 

Repayment of bank overdrafts and lines of credit

 

--

 

(58)

Repayment of sale and leaseback obligation

 

--

 

(118)

Repayment of lease liabilities (2018: Repayment of finance lease obligations)

 

(77)

 

(12)

Repayment of long-term debt

 

(250)

 

(197)

Proceeds from issuance of long-term debt

 

500

 

40

Net cash from (used in) financing activities

 

173

 

(345)

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

1,031

 

(4,411)

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

7,402

 

7,569

Changes to cash and cash equivalents due to foreign exchanges rates

 

49

 

(18)

Cash and cash equivalents at end of period

 

8,482

 

3,140

 

 

 

 

 

Supplemental Cash Flow Information

 

 

 

 

Interest paid

 

66

 

47

Interest received

 

43

 

 1

 

 

 

See accompanying notes to unaudited condensed consolidated interim financial statements.

 


 

(1)The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in retained earnings at the date of initial application. For further information, see Note 2 of the condensed consolidated interim financial statements.

 

(2)Certain comparative figures for the 3-month period ended March 31, 2018 were restated for immaterial errors. For further information, see Note 9 of the Q3-2018 condensed consolidated interim financial statements.

 

voxeljet AG

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

1. Preparation of financial statements

 

Our condensed consolidated interim financial statements include the accounts of voxeljet AG, which is listed on the New York Stock Exchange, and its wholly-owned subsidiaries voxeljet America Inc., voxeljet UK Ltd. and voxeljet India Pvt. Ltd., as well as voxeljet China Co. Ltd., which are collectively referred to herein as the ‘Group’ or the ‘Company.’

 

Our condensed consolidated interim financial statements were prepared in compliance with all applicable measurement and presentation rules contained in International Financial Reporting Standards (‘IFRS’) as set forth by the International Accounting Standards Board (‘IASB’) and Interpretations of the IFRS Interpretations Committee (‘IFRIC’). The designation IFRS also includes all valid International Accounting Standards (‘IAS’); and the designation IFRIC also includes all valid interpretations of the Standing Interpretations Committee (‘SIC’). Specifically, these financial statements were prepared in accordance with the disclosure requirements and the measurement principles for interim financial reporting purposes specified by IAS 34.

 

The IASB issued a number of new IFRS standards which are required to be adopted in annual periods beginning after January 1, 2019.

 

 

 

 

Standard

Effective date

Descriptions

Others

01/2020

Amendments References to the Conceptual Framework in IFRS Standards 3

IFRS 3

01/2020

Amendment Definition of a business

IAS 1, IAS 8

01/2020

Amendment, Amendment Definition of material

IFRS 17

01/2021

Insurance Contracts

IFRS 10, IAS 28

indefinite

Amendment Sale or Contribution of Assets between Investor and its Associate or Joint Venture

 

The Company has not yet conclusively determined what impact the new standards, amendments or interpretations will have on its financial statements, but does not expect a significant impact.

 

The condensed consolidated interim financial statements as of and for the three months ended March 31, 2019 and 2018 were authorized for issue by the Management Board on May 16, 2019.

 

 

2. Summary of significant accounting policies

 

Except as described below, the accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in the Company’s consolidated financial statements as of and for the year ended December 31, 2018, which can be found in its Annual Report on Form 20-F that was filed with the U.S. Securities and Exchange Commission on March 28, 2019. The changes in accounting policies are also expected to be reflected in the Company’s consolidated financial statements as of and for the year ending December 31, 2019.

 

The Group has initially adopted IFRS 16 Leases from January 1, 2019. A number of other new standards are effective from January 1, 2019 but these do not have a material effect on the Company’s consolidated financial statements.

 

IFRS 16 introduced a single, on-balance sheet accounting model for lessees. As a result, the Group, as a lessee, has recognized right-of-use assets representing its rights to use the underlying assets and lease liabilities representing its obligation to make lease payments. Lessor accounting remains similar to previous accounting policies.


 

 

The Group has applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognized in retained earnings as of January 1, 2019. Accordingly, the comparative information presented for 2018 has not been restated and is therefore presented as previously reported, under IAS 17 and related interpretations. The details of changes in accounting are disclosed below.

 

Definition of a lease

 

Previously, the Company determined at contract inception whether an arrangement was or contained a lease under IFRIC 4 Determining Whether an Arrangement contains a Lease. The Company now assesses whether a contract is or contains a lease based on the new definition of a lease. Under IFRS 16, a contract is, or contains, a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration.

 

On transition to IFRS 16, the Company elected to apply the practical expedient to grandfather the assessment of which transactions are leases. It applies IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered into or changed on or after January 1, 2019.

 

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone prices.

 

The Company as a lessee

 

The Company leases assets, including properties, production equipment and vehicles. As a lessee, the Company previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under IFRS 16, the Company recognizes right-of-use assets and lease liabilities for most leases. These leases are on-balance sheet.

 

However, the Company has elected not to recognize right-of-use assets and lease liabilities for some leases of low-value assets (e.g. tools) as well as short-term leases (leases with less than 12 months of lease term). The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

 

The Company presents right-of-use assets in “property, plant and equipment”, in the same line item as it presents underlying assets of the same nature that it owns. The carrying amounts of right-of-use assets are as below:

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

Property

    

Production equipment

 

Others

 

Total

 

(€ in thousands)

Balance at January 1, 2019

3,134

 

112

 

280

 

3,526

Balance at March 31, 2019

4,759

 

104

 

277

 

5,140

 

The Company presents lease liabilities within “financial liabilities” in the condensed consolidated statements of financial position.

 

 

Leases under IFRS 16

 

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at an amount equal to the lease liability, and subsequently at cost less any accumulated depreciation and impairment losses, and adjusted for certain remeasurements of the lease liability.

 

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Company’s incremental borrowing rate.

 

The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in the future lease payments arising from a change in an index or rate, a


 

change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonable certain not to be exercised.

 

The Company has applied judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether the Company is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized.

 

Transition

 

Previously, the Company classified property plant and equipment leases as operating leases under IAS 17. These include manufacturing facilities. The leases typically run for a period of three to ten years. Some leases include an option to renew the lease for an additional three to five years after the end of the non-cancelable period.

 

At transition, for leases classified as operating leases under IAS 17, lease liabilities were measured at the present value of the remaining lease payments, discounted at the Company’s incremental borrowing rates for similar assets as of January 1, 2019. Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.

 

The Company used the following practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17:

 

-

Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.

-

Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term.

-

Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.

 

The Company leases a small number of items of production equipment. These leases were classified as finance leases under IAS 17. For these finance leases, the carrying amount of the right-of-use asset and the lease liability at January 1, 2019 were determined at the carrying amount of the lease asset and lease liability under IAS 17 immediately before that date.

 

 

The Company as a lessor

 

The Company leases out a small number of 3D printers. Those leases have been classified as operating leases.

 

The accounting policies applicable to the Company as a lessor are not different from those under IAS 17.

 

The Company is not required to make any adjustments on transition to IFRS 16 for leases in which it acts as a lessor.

 

 

Impacts on financial statements

 

Impacts on transition

 

On transition to IFRS 16, the Company recognized additional right-of-use assets, including property, plant and equipment and additional lease liabilities. The impact on transition is summarized below.

 

 

 

 

 

    

Impact on adopting IFRS 16 at January 1, 2019

 

 

(€ in thousands)

Right-of-use assets presented in property plant and equipment

 

3,526

Lease liabilities as presented in financial liabilities

 

3,526

 

 

When measuring lease liabilities for leases that were classified as operating lease, the Company discounted lease payments using its incremental borrowing rates as of January 1, 2019. The weighted-average rate applied is 4.55%.


 

 

 

 

 

 

    

January 1, 2019

 

 

(€ in thousands)

Operating lease commitment at December 31, 2018, as disclosed in the Group's consolidated financial statements

 

2,584

Discounted using the incremental borrowing rate at January 1, 2019

 

1,973

Finance lease liability recognized as at December 31, 2018

 

105

Recognition exemption for leases with less than 12 months of lease term at transition

 

(84)

Extension options reasonably certain to be exercised

 

1,532

Lease liabilities recognized at January 1, 2019

 

3,526

 

 

Impacts for the period

 

As a result of initially applying IFRS 16, in relation to the leases that were previously classified as operating leases, the Company recognized kEUR 5,140 of right-of-use assets and kEUR 4,348 of lease liabilities as of March 31, 2019.

 

Also in relation to those leases under IFRS 16, the Company has recognized depreciation and interest costs, instead of operating lease expenses. During the three-months ended March 31, 2019, the Company recognized kEUR 155 of depreciation expenses and kEUR 43 of interest expense from these leases.

 

 

 

 

 

 

 

 

3. Share based payment arrangements

 

 

On April 7, 2017, voxeljet AG established a share option plan that entitles key management personnel and senior employees of voxeljet AG and its subsidiaries to purchase shares of the parent company.

 

Total options available under the share option plan are 372,000.  279,000 options (75%, Tranche 1) were granted on April 7, 2017. 93,000 options (25%, Tranche 2) were granted on April 12, 2018.

 

The vesting conditions include a service condition (the options vest after a period of four years of continued service from the respective grant date) and a market condition (the options may only be exercised if the share price exceeds the exercise price over a period of 90 consecutive days by at least 20% in the period between the grant date and the respective exercise time frame) of which both conditions must be met.

 

The fair value of the employee share option plan has been measured for Tranches 1 and 2 using a Monte Carlo simulation. The market condition has been incorporated into the fair value at grant date.

 

The inputs used in the measurement of the fair value at grant date are as follows:

 

 

 

 

 

 

 

 

Tranche 1

 

Tranche 2

Parameter

 

 

Share price at grant date

 

USD 13.80

 

USD 16.15

Exercise price

 

USD 13.90

 

USD 16.15

Expected volatility

 

55.00%

 

58.40%

Expected dividends

 

--

 

--

Risk-free interest rate

 

2.49%

 

2.85%

Fair value at grant date

 

USD 8.00

 

USD 9.74

 

 


The respective expected volatility has been based on an evaluation of the historical volatility of the Company’s share price as at the grant date. As at March  31, 2019 no options are exercisable and 353,400 options are outstanding. The weighted-average contractual life of the options at March  31, 2019 amounts to 8.3 years (March 31, 2018:  9.0 years).


 

 

The expenses recognized in the profit and loss statement in relation to the share-based payment arrangements amounted to kEUR 165 in the three months ended March  31, 2019  (three months ended March  31, 2018: kEUR 129).

 

On March 1, 2019, voxeljet China moved into a new facility. The minority shareholder of voxeljet China has increased its shareholding in the entity from 4.175% to 30% through an in-kind capital contribution of a lease contract on the new facility. The lease term under IFRS 16 of the contract is six years, including a rent-free period during the first three years. The transaction is accounted for as a share-based payment transaction under IFRS 2 and resulted in an increase of non-controlling interest of kEUR 216 and capital reserves of kEUR 604. The Company also recorded a right-of-use asset and the corresponding lease liability on the commencement date of the lease. 

 

 

 

 

4.  Inventories

 

 

 

 

 

 

 

 

    

3/31/2019

    

12/31/2018

 

 

 

(€ in thousands)

 

Raw materials and merchandise

 

4,218

 

4,628

 

Work in progress

 

6,938

 

5,436

 

Total

 

11,156

 

10,064

 

 

 

 

 

5. Property, plant and equipment, net

 

 

 

 

 

 

    

3/31/2019

    

12/31/2018 (1)

 

 

(€ in thousands)

Land, buildings and leasehold improvements

 

21,772

 

17,085

Plant and machinery (2018: includes assets under finance lease)

 

8,713

 

9,072

Other facilities, factory and office equipment

 

1,742

 

1,502

Assets under construction and prepayments made

 

28

 

16

Total

 

32,255

 

27,675

Thereof pledged assets of Property, Plant and Equipment

 

7,015

 

6,691

Leased assets included in Property, Plant and Equipment:

 

189

 

357

Printers leased to customers under operating lease

 

189

 

208

Other factory equipment

 

--

 

149

 

 

(1)The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in retained earnings at the date of initial application. For further information, see Note 2 of the condensed consolidated interim financial statements.

 

 

 

 

 


 

6. Other liabilities and provisions

 

 

 

 

 

 

 

    

3/31/2019

    

12/31/2018

 

 

(€ in thousands)

Liabilities from VAT

 

97

 

24

Employee bonus

 

382

 

413

Accruals for vacation and overtime

 

398

 

210

Accruals for licenses

 

40

 

69

Liabilities from payroll

 

314

 

298

Accruals for commissions

 

37

 

47

Accruals for compensation of Supervisory board

 

225

 

180

Accrual for warranty

 

184

 

240

Others

 

322

 

387

Total

 

1,999

 

1,868

 

 

 

7. Financial instruments

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. In addition, for the current year the fair value disclosure of lease liabilities is not required.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying amount

 

Fair Value

 

 

 

 

 

 

Assets at

 

Liabilities

 

Total

 

 

 

 

 

 

 

 

 

 

FVTPL

 

FVOCI

 

amortized

 

at amortized

 

carrying

 

 

 

 

 

 

 

 

3/31/2019

  

 

  

 

  

cost

  

cost

  

amount

  

Level 1

  

Level 2

  

Level 3

  

Total

Financial assets measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

1,627

 

--

 

--

 

--

 

1,627

 

--

 

1,627

 

--

 

1,627

Equity securities

 

--

 

 5

 

--

 

--

 

 5

 

--

 

--

 

 5

 

 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds

 

--

 

8,924

 

--

 

--

 

8,924

 

8,924

 

--

 

--

 

8,924

Note receivable

 

--

 

1,253

 

--

 

--

 

1,253

 

1,253

 

--

 

--

 

1,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

--

 

--

 

8,482

 

--

 

8,482

 

8,482

 

--

 

 

 

8,482

Trade and other receivables

 

--

 

--

 

4,857

 

--

 

4,857

 

--

 

--

 

--

 

--

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

--

 

--

 

--

 

16,652

 

16,652

 

--

 

15,641

 

--

 

15,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

--

 

--

 

--

 

916

 

916

 

--

 

908

 

--

 

908

Trade payables

 

--

 

--

 

--

 

2,507

 

2,507

 

--

 

--

 

--

 

--

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying amount

 

Fair Value

 

 

 

 

 

 

Assets at

 

Liabilities

 

Total

 

 

 

 

 

 

 

 

 

 

FVTPL

 

FVOCI

 

amortized

 

at amortized

 

carrying

 

 

 

 

 

 

 

 

12/31/2018

  

 

  

 

  

cost

  

cost

  

amount

  

Level 1

  

Level 2

  

Level 3

  

Total

Financial assets measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

2,229

 

--

 

--

 

--

 

2,229

 

--

 

2,229

 

--

 

2,229

Equity securities

 

--

 

 5

 

--

 

--

 

 5

 

--

 

--

 

 5

 

 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds

 

--

 

12,905

 

--

 

--

 

12,905

 

12,905

 

--

 

--

 

12,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

--

 

--

 

7,402

 

--