Materialise NV

Good day and thank you for standing by. Welcome to the Q3 2022 Materialized Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Harriet Freed of LHA. Please go ahead.

Thank you for joining us today for Materialize's quarterly conference call. With us on the call are Free Funcron, founder and chief executive officer of Materialize, Peter Lays, executive chairman, and Johann Albrecht, chief financial officer. Today's call and webcast are being accompanied by a slide presentation that reviews Materialize's strategic, financial, and operational performance for the third quarter of 2022. To access the slides, if you've not already done so, please go to the investor relations section of the company's website. The earnings press release issued earlier today can also be found on that page. Before we get started, I'd like to remind you that management may make forward-looking statements regarding the company's plans, expectations, and growth prospects, among other things. These forward-looking statements are subject to known uncertainties and risks that could cause actual results to differ materially from the expectations expressed. including competitive dynamics and industry change. Any forward-looking statements, including those related to the company's future results and activities, represent management's estimates as of today and should not be relied upon as representing their estimates of any subsequent day. Management disclaims any duty to update or revise any forward-looking statements to reflect future events or changes in expectations. A more detailed description of the results, the risks and uncertainties and other factors that may impact the company's future business or financial results can be found in the company's most recent annual report on Form 20F filed with the SEC. Finally, management will discuss certain non-IFRS measures on today's conference call. A reconciliation table is contained in the earnings release and at the end of today's slide presentation. With that, I'd like to turn the call over to Peter Lays. Please go ahead, Peter.

Thank you, Harriet. And thank you, everyone, for joining us today. You can find, as always, the agenda for this call on slide number three. As a first item on our agenda, I will set the stage by simmering the highlights of our financial results for the past quarter. Then I will pass the floor to Frits, who will walk you through some of our recent business successes and initiatives. After that, Johan will go through our third quarter numbers in more detail. And finally, I will come back to give you some very quick observations about what we currently believe the last few months of the year may bring. And then we have completed our prepared remarks. As always, we will be happy to take and respond to your questions. So, let's turn to slide number four, which summarizes the highlights of our financial results. In the third quarter of 2022, we recorded €58.3 million in revenues, representing a growth of almost 12% compared to last year's period. Also, deferred revenue from maintenance and license fees further increased €3.2 million compared to the end of last year, which was driven by strong sales performances of our medical segment. Our adjusted EBITDA for the quarter amounted to €5.1 million compared to €9.7 million last year, and was impacted by both our continued investment, in particular in our COEM software solutions, but also by inflation-related higher expenses, in particular remuneration costs. Our earnings per share for the quarter were two cents. And with this, I would like now to pass the floor to Frits. Thank you, Peter. Good morning or good afternoon to all of you listening to this call. Even in the current uncertain economic climate, Materialise keeps consistently posting double-digit growth and investing in a sustainable future. Materialise Manufacturing posted a 14% growth in Q3 on a business that is going to exceed €100 million this year. This result is a combination of reliable and profitable rapid prototyping activity in a mature market and growth of our certified manufacturing activities in selected vertical segments such as aerospace, medtech, alternative drive systems and wearables. In those, we are building on early proven and long-term scalable opportunities for additive manufacturing. In aerospace, we have been consistently growing our customer base beyond our long-standing relation with Airbus. In last year's Q3 call, we talked about the materialized contribution to the eVTOL of lift aircraft. currently in regular production. A recent project that we can communicate about is shown on slide 5. It is the production of 60 components per plane in a new series of aerial surveillance drones for the company Atmos. At the beginning of 2022, we indicated we would invest in the future this year, and we are doing so consistently. During our Q2 call, we announced the acquisition of a second plant for ACTEC. This quarter, we launched a complete new materialized foot scan suite for materialized motion. And this one is illustrated on slide six. Is it the result of a major product portfolio upgrade a year after integrating RS-CAN and RS-PRINT into the newly formed materialized motion? The new food scan software is now a CE-certified medical device, and the FITS Plus insoles form a complete new line of medical-grade personalized insoles. that are based on years of scientific research in collaboration with multiple academic institutes to cater specific feed pathologies. Inflation is waiting on the current investments, but the outcome in the longer term looks very promising. Materialized medical is also consistently maintaining its double-digit growth rate on ever-increasing numbers. This is true both for the 3D-printed medical device business and for the medical device software business. In the medical device business, we are increasing our number of OEM partnerships in the ortho segment and growing both our partner sales and direct sales in the CMS segment. Simultaneously, we are increasing our software presence in medical device companies and point of care settings in hospitals. Our surgical planning platforms are systematically being extended from the workstation-based Mimics Suite and Mimics Enlight planning environment to cloud-based Mimics platform planning systems. Those combine the benefits of our global clinical engineering services with the increasing use of artificial intelligence-based automations. This variety of solutions allows us to cater the needs of large medical device companies with proprietary solutions as well as those of smaller companies that prefer a more out-of-the-box approach. This combination is the most complete offering in the industry. It supports companies that develop new devices or hospitals that develop new therapies from the initial R&D phase over the clinical study phase up to the scale and rollout phase, with dedicated tools for each of those phases. It is obvious that in a world with increasing cybersecurity and privacy threats, all of the successful certified applications listed above need a secure software platform. That is why we acquired Identify3D in September. Identify3D has a proven software toolkit that has been field tested by companies and government organizations to allow distributed, secured, additive manufacturing operations and supply chains. The tools of Identify3D are immediately compatible with the CoEM platform we launched at Rapid earlier this year. Even more important is that we can build on the extensive experience of the Identify3D team to advise our customers in configuring and implementing their own secure version of CoEM. CoEM is currently operational at multiple customer sites. The use of CoEM will also accelerate our own manufacturing and medical production lines. and we will be proud to announce a new set of partnerships at Formnext with Coriam. Multiple AM software suppliers and machine OEMs are joining the platform. We are looking forward to announce those in two weeks at Formnext and we hope to see you there as well. Thank you for your attention and over to Johan.