The derivative financial instruments are revalued on each balance sheet date, with changes in the fair value between reporting periods recorded within financial result of the consolidated statements of comprehensive loss. An increase in our share price results in a finance expense, while a decrease leads to a finance income, holding other parameters constant.

At the time tranche A of kEUR 10,000 was received in December 2017, the EIB under the Synthetic Warrant Agreement was entitled to receive as consideration cash equal to the market value of 195,790 ordinary shares of the Company (or equivalent number of ADS of the Company) at the maturity date (5 years after draw down), after the occurrence of a trigger event, or on the expiration date (10 years after draw down). Under the anti-dilution protection clause of the agreement the number of ordinary shares under the Synthetic Warrant Agreement was increased to 254,527 as a result of the capital increase effective October 17, 2018 and November 1, 2018. As a result of the capital increases effective January 25, 2021 and February 17, 2021, also under the anti-dilution protection clause, the number of ordinary shares under the Synthetic Warrant Agreement was increased to 310,558.

At the time tranche B1 of kEUR 5,000 was received in June 2020, the EIB under the Synthetic Warrant Agreement, was entitled to receive as consideration cash equal to the market value of 404,928 ordinary shares of the Company (or equivalent number of ADS of the Company) at the maturity date (5 years after draw down), after the occurrence of a trigger event, or on the expiration date (10 years after draw down of the tranche A). As a result of the capital increases effective January 25, 2021 and February 17, 2021, under the anti-dilution protection clause, the number of ordinary shares under the Synthetic Warrant Agreement was increased to 494,068. Related to tranche B1, voxeljet and the EIB also agreed under the Finance Contract, a PIK interest (payment in kind interest) rate of 5% in addition to a 7% fixed interest rate.

Interest expense included interest from long term debt, which amounted to kEUR 524 for the first quarter of 2021, compared to kEUR 319 in the comparative period in 2020. The increase was mainly related to the draw down of tranche B1 from the EIB in June 2020, as mentioned above reflecting the PIK interest as well as the fixed interest.

Net loss for the first quarter of 2021 was kEUR 8,329 or EUR 1.51 per share, as compared to net loss of kEUR 2,601, or EUR 0.53 per share, in the first quarter of 2020.

Effective August 14, 2020, we changed the ratio of our American Depositary Shares (“ADSs”) to ordinary shares from each ADS representing one-fifth (1/5) of one ordinary share (5:1) to each ADS representing one ordinary share (1:1). Based on a conversion rate of one ADSs per ordinary share, net loss was at EUR 1.51 per ADS for the first quarter of 2021, compared to a net loss of EUR 0.11 per ADS for the first quarter of 2020, based on a conversion rate of five ADSs per ordinary share. 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 one (before August 14, 2020: five) as each ordinary share represents one (before August 14, 2020: five) ADS(s).

Business Outlook

Our revenue guidance for the second quarter of 2021 is expected to be in the range of kEUR 4,000 to kEUR 6,000.

We reaffirm our guidance for the full year ending December 31, 2021:

- Full year revenue is expected to be in the range of kEUR 22,500 to kEUR 27,500

- Gross margin for the full year is expected to be above 32.5%

- Operating expenses for the full year are expected as follows: selling and administrative expenses are expected to be in the range of kEUR 11,400 to kEUR 11,900 and R&D expenses are projected to be between approximately kEUR 6,000 and kEUR 6,250. Depreciation and amortization expense is expected to be between kEUR 3,000 and kEUR 3,250.

- Adjusted EBITDA for the fourth quarter of 2021 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 for the full year are projected to be in the range of kEUR 1,000 to kEUR 1,250, which primarily includes ongoing investments in our subsidiaries.

Our total backlog of 3D printer orders at March 31, 2021 was kEUR 6,628, which represents eight 3D printers. This compares to a backlog of kEUR 6,844 representing nine 3D printers, at December 31, 2020. 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, 2021, we had cash and cash equivalents of kEUR 9,761, additionally we hold restricted cash of kEUR 2,610, held kEUR 7,929 of investments in bond funds, and kEUR 2,559 in a note receivable, which are included in current financial assets on our consolidated statements of financial position.

Successful Completion of Capital Increases

On January 25, 2021, the Company announced that it has completed its registered direct offering and sale of 621,170 ordinary shares in the form of ADS at a purchase price of € 13.33 per share (this equals $16.16 per ordinary share based on the exchange rate as of the close of business in New York on January 14, 2021). The gross proceeds of the offering amount to approximately $10 million (€ 8.3 million) before deducting fees and expenses. The Company intends to use the net proceeds of the offering for general corporate purposes. A.G.P./Alliance Global Partners acted as sole placement agent for the offering.

On February 17, 2021, the Company announced that it has completed its registered direct offering and sale of 443,414 ordinary shares in the form of ADS at a purchase price of € 22.27 per share (this equals $26.95 per ordinary share based on the exchange rate as of the close of business in New York on February 9, 2021). The gross proceeds of the offering amount to approximately $12 million (€ 9.9 million) before deducting fees and expenses. The Company intends to use the net proceeds of the offering for general corporate purposes. A.G.P./Alliance Global Partners acted as sole placement agent for the offering.

The proceeds from those capital increases, net of transaction costs and tax, amounted to approximately € 16.0 million. After those two capital increases, the number of outstanding shares of the Company as of March 31, 2021 amounted to 5,900,584.

Webcast and Conference Call Details

The Company will host a conference call and webcast to review the results for the first quarter 2021 on Friday, May 14, 2021 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 2021 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 13719036. The recording will be available for replay through May 21, 2021.

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.on24.com/wcc/r/3081448/AD48E240A166DDAE5AD9C9BD2844E9EB 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

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.