Materialise Reports First Quarter 2020 Results

Consolidated statement of cash flows (Unaudited)

	For the three months ended March 31,
in 000	2020	2019
	€	€
Operating activities
Net (loss) profit for the period	(2,853)	(304)
Non-cash and operational adjustments
Depreciation of property, plant & equipment	3,600	3,429
Amortization of intangible assets	1,115	1,101
Share-based payment expense	(75)	(177)
Loss (gain) on disposal of property, plant & equipment	16	51
Movement in provisions	(3)	14
Movement reserve for bad debt	221	(136)
Financial income	(500)	(60)
Financial expense	1,821	583
Impact of foreign currencies		83
Share in loss of a joint venture (equity method)	39	124
(Deferred) income taxes	454	1,065
Other	147	35
Working capital adjustment & income tax paid
Decrease (increase) in trade receivables and other receivables	1,582	(2,393)
Decrease (increase) in inventories	(3)	(1,200)
Increase (decrease) in trade payables and other payables	2,300	2,251
Income tax paid	(588)	(385)
Net cash flow from operating activities	7.273	4,081


	For the three months ended March 31,
in 000	2020	2019
	€	€
Investing activities
Purchase of property, plant & equipment	(2,575)	(2,657)
Purchase of intangible assets	(478)	(575)
Proceeds from the sale of property, plant & equipment & intangible assets	69	–
Convertible loan to third party	(300)	(2,500)
Investments in joint-ventures	–	–
Interest received	–	53
Net cash flow used in investing activities	(3,284)	(5,679)

Financing activities
Proceeds from loans & borrowings		1,500
Repayment of loans & borrowings	(2,585)	(2,543)
Repayment of finance leases	(1,016)	(1,399)
Interest paid	(634)	(503)
Other financial income (expense)	(138)	(110)
Net cash flow from (used in) financing activities	(4,373)	(3,055)

Net increase of cash & cash equivalents	(383)	(4,653)
Cash & cash equivalents at beginning of the year	128,897	115,506
Exchange rate differences on cash & cash equivalents	(1,379)	199
Cash & cash equivalents at end of the year	127,135	111,052

Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)

	For the three months ended March 31,						For the three months ended March 31,
In 000	2020			2019			2020		2019
	€			€			€		€

Net profit (loss) for the period		(2,853)			(304)			(2,853)		(304)

Income taxes		457			1,065			457		1,065
Financial expenses		1,821			1,196			1,821		1,196
Financial income		(500	)		(604	)		(500)		(604
Share in loss of joint venture		39			123			39		123
Depreciation and amortization		4,715			4,530			4,715		4,530

EBITDA		3,678			6,006			3,678		6,006

Non-cash stock-based compensation expense (1)		(75)			(177)			(75)		(177)
Acquisition-related expenses business combinations		–			–			–		–

ADJUSTED EBITDA		3,603			5,829			3,603		5,829

(1)

Non-cash share-based compensation expenses represent the cost of equity-settled and cash-settled share-based payments to employees.

Segment P&L (Unaudited)

In 000	Materialise Software	Materialise Medical	Materialise Manufact- uring	Total segments	Unallocated (1)(2)	Consoli- dated
	€	€	€	€	€	€
For the three months ended March 31, 2020
Revenues	9,821	15,645	20,815	46,281	(36)	46,245
Segment adjusted EBITDA	2,645	2,455	1,118	6,218	(2,615)	3,603

Segment adjusted EBITDA %	26.9%	15.7%	5.4%	13.4%		7.8%

For the three months ended March 31, 2019
Revenues	9,350	13,566	24,184	47,100	15	47,115
Segment adjusted EBITDA	2,961	1,773	3,695	8,429	(2,600)	5,829

Segment adjusted EBITDA %	31.7%	13.1%	15.3%	17.9%		12.4%

(1)		Unallocated Revenues consist of occasional one-off sales by our core competencies not allocated to any of our segments.
(2)		Unallocated segment EBITDA consists of corporate research and development, corporate headquarter costs and other operating income (expense), and the added non-cash share-based compensation expenses and acquisition related expenses of business combinations that are included in Adjusted EBITDA.

Reconciliation of Net Profit (Loss) to Segment EBITDA (Unaudited)

	For the three months ended March 31,				For the three months ended March 31,
In 000	2020		2019		2020		2019
	€		€		€		€

Net profit (loss) for the period		(2,853)		(304)		(2,853)		(304)
Income taxes		457		1,065		457		1,065
Financial cost		1,821		1,196		1,821		1,196
Financial income		(500)		(604)		(500)		(604)
Share in loss of joint venture		39		123		39		123

Operating profit		(1,037)		1,476		(1,037)		1,476

Depreciation and amortization		4,715		4,530		4,715		4,530
Corporate research and development		747		464		747		464
Corporate headquarter costs		2,368		2,565		2,368		2,565
Other operating (income) expense		(575)		(606)		(575)		(606)

Segment EBITDA		6,218		8,429		6,218		8,429