voxeljet AG

Greetings and welcome to VoxelJet AG second quarter 2021 financial results conference call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during today's conference, please press star zero on your telephone keypad. If anyone should require operator assistance, you may do so by pressing star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Mr. Johannes. Thank you, sir. You may begin.

Thank you, operator, and good morning, everyone. With me today are Dr. Ingo Ederer, RoxyChess Chief Executive Officer, and Rudy Franz, RoxyChess Chief Financial Officer. Yesterday, after the market closed, RoxyChess issued a press release Announcing its second quarter results for the period ended June 30, 2021. The release, as well as the accompanying presentation for this conference call, is available in the investor relations section of the company's website at voxelchat.com. During our call, we may make certain forward-looking statements about the company's performance, including expectations on results from our current order backlogs. Such forward-looking statements are not guarantees of future performance, and therefore one should not place undue reliance upon them. Forward-looking statements are also subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed, including the risks and uncertainties caused by the current COVID-19 pandemic and the residing uncertainty in the global economy. For additional information concerning factors that could cause actual results to differ from those discussed in our forward-looking statements, you should refer to the cautionary statements contained in our press release, as well as the risk factors contained in the company's filings with the Securities and Exchange Commission. With that, I would now like to turn the call over to Ingo, the Chief Executive Officer of Rob2Chat.

Thank you, Johannes. Good morning, everyone. Thank you for joining us on our earnings call today. Let's turn to slide four. Our roots reach back to the year 1995 with the first successful dosing of UV resins. In the context of a hidden project, initial 3D printing tests were performed at the Technical University Munich. I co-founded the company on May 1st, 1999 as a spin-off from the university with the clear vision in mind to establish new manufacturing standards. today we provide a customer strategic competitive advantage by upgrading the existing conventional production methods to additive manufacturing solutions we push technology boundaries and develop new generative processes for the serious production of complex components on slide 5 you can find some more information about woody and myself we are significant shareholders and As we previously announced, we both extended our contract effective as of July 1st, 2021. We have a clear plan in mind and we are fully committed to make this a success for all stakeholders. Let's turn to slide six and some thoughts on the additive manufacturing market. As you can see, Wohler Associates projects growth to accelerate over the next years. This growth will be driven by larger share of sales manufacturing. I believe we are in an excellent position to capture our fair share of this growing market over the next years. Because what really differentiates us from other players in the 3D printing industry is our focus on solutions for manufacturing or industrial production at scale. Keep in mind, we are working with our first 3D printers to BMW and Daimler in 2002. In addition, our technology evolved significantly over the last years in terms of speed, accuracy, and the degree of automation of the whole process chain. Before we start with the formal part of the presentation, let's quickly remind those who are new to that what we do. Let's turn to slide seven, where we describe our technology. In the additive manufacturing market, you have probably more than 10 different technologies, each with its specialized field of application. We use a technology called binder jetting. Binder jetting is especially suited for high volume manufacturing because of its potential to scale. On slide 8, you can see some of our products. It starts with the VX200 on the left and goes all the way to the VX4000, which is the largest binder chatting system available in the market. The idea is that we have one platform with many applications, means each model can be used with multiple material sets. For example, we offer the VX1000 3D printer for the printing of highly accurate sand casting molds, and there's a plastic polymerization printer. We expect to also offer it as a high-speed polymer-centering 3D printer. Looking at slide 9 and our integrated business model. With this integrated model, we can capture business either as a 3D printer sale or on-demand printing contract. In the services segment on the left side of the slide, we operate our own 3D printers in free facilities around the world to offer affordable on-demand access to our technology. The barriers to entry are very low as customers just need to send in the 3D data and we will print parts for them. That is great and easy way for our customers to understand new business opportunities in 3D printing. The short sales cycles and services helps us balance the typical long sales cycles in our system segment. In our system segment, we manufacture and sell industrial-grade high-speed large-format 3D printing systems geared towards mass production of complex models, molds, and direct parts. Systems revenue also includes recurring revenue from the sale of consumables, maintenance contracts, upgrades, and other after-sales activities. Slide 10 shows our global sales network and production footprint. As you can see, we have reached an established position in all major markets in Europe, the US, as well as Asia. We focus on educating our channel partners to ensure true global coverage. Climbing to slide 11. We differentiate ourselves from our competitors by build size, mature diversity, and speed. Our printing systems are modular, versatile and highly scalable and therefore uniquely positioned to support critical demanding applications and address the challenges and needs that are most important to our customers. We have established excellent relationships with Blue Chip customers from various industries. Products made with our technology are flying in space, make mobility more efficient and new engineering solutions possible. Let's now start with the formal part of the presentation. I will begin with an overview of the results for the second quarter. Uli will then provide a more in-depth view of our financials for the second quarter and our outlook for 2021. Following his comments, we will take your questions. I am very happy with the results for the quarter as we have made significant progress in our key projects. Just recently, we signed a deal with a large multinational company for our new high-speed centering 3D printer as part of the beta program we have launched earlier this year. In addition to that, we are in advanced negotiations with another large multinational company, but cannot assure you that we will come to terms on a final contract. Over the last months, we have significantly improved the stability and reliability of the new HSS 3D printer and are currently in the process of ordering parts for the assembly of the first units. We have shipped the next VJDX units to the car makers facility. The 3D printers are brought in and installed in parallel with the ongoing operation of the VJDX units already in production. As you know, we are supplying a full production solution here. Our partners are currently making some upgrades to the post-processing workflows. For example, they are bringing in larger and more powerful microwave ovens, which cures the 3D printed cores prior to casting. In addition to that, we are working on an interesting project in the field of renewable energies and expect to announce more details on that soon. In our services segment, the demand for 3D printed parts continues to be high in Europe and has significantly picked up in the US and also in China. In our German 3D parts production center, we were able to achieve gross margins around 40%, which is an excellent result. Turning to slide 13, total revenue for the quarter increased 26% to 4.9 million euros as compared to 3.9 million euros in the second quarter last year. In our system segment, we sold two printers this quarter as compared to two printers in the second quarter 2020. Historically, the majority of 3D printer sales is recognized in the second half and the fourth quarter, and we expect it to be no exception this time. Aftersales revenue increased significantly as compared to the second quarter 2020, which is great news. We continue to achieve very strong gross margin contribution from the sale of consumables. Services revenue means the revenue from selling on-demand 3D printed parts continue to be strong in Europe, with sales up substantially and significantly higher than in the second quarter of 2020. Revenues in the U.S. and China increased substantially from the first quarter this year. Particularly in the U.S., we have seen a strong order inflow, probably the strongest in the last 15 months. For example, we have just recently received a large repeat order from a leading U.S.-based exploration company for printed PMMA patents for the casting of extra-large tetanium parts. Looking at the right side of this slide in gross margins, as a result of higher utilization, gross margin contribution from our 3D parts production centers in the US and China improved. In our European service center, utilization and gross margin contribution remained on a very good level comparable to the first quarter of 2021. Slide 14 breaks down order backlog by quarters revenue by geography and operating expenses by category. The majority of administrative expenses are related to the cost of being a public company, like, for example, audit and legal consulting fees. When looking at revenue by geographic region, we target an even distribution across the three regions to hedge against risk from local events. Let's move to slide 16, where you can see a close-up of the new large high-speed printer and 3D printer in action. We are very happy with the progress we are making. In the conference call with the first quarter results, we showed you a picture of the new printer. Since then, we have developed and implemented significant stability and performance improvements. We are currently ordering parts for the assembly of the first beta systems and are very happy that we already won a large multinational company. as the first customer for this new printer. On slide 17, you can see how a large part is taken out of the job box. The part was printed in PA 12 on the new HSS printer. On slide 18, we have summarized recent progress in other projects. As mentioned in the beginning, we successfully shipped and installed VJX units 4 and 5 at the carmaker's facility and received a technical pre-example for them. Regarding materials, over the year, Last year, we have developed ceramic materials that can be printed, for example, on a tailored Leaks 1000 system. Together with the Japanese company H&T, which is a market leader in glass and gas-related products and employs more than 50,000 people, we developed a material called Bridal. The ceramic parts 3D printed with this material can be used among other applications as calls for the investment casting process, in order to reproduce complex and filigree cavities within the castings. In the future, this process could make it possible, for example, to integrate internal cooling channels in turbine plates. With that, turbine efficiency could be increased and downtimes reduced to a minimum. Bridov is a high-performance ceramic that is extremely well-suited for metal casting to its high chemical stability, heat resistance, thermal conductivity, and low thermal expansion. We have just recently sent samples to selected customers, and the feedback so far has been very positive. In one of the later slides, you can see a printed part on our VIX1000 with a bright old material. Now let's move to another interesting 3D printing material. As you know, VJX is working with a fully environmentally friendly material set called Inorganics. 3D printed Inorganic calls create zero emissions during the handling and casting. Taking the knowledge we have gained over the last years, and especially so with the VJX, we developed a second generation inorganic material which can be processed with our standard 3D printers as well. The second generation material is cold hardening and can be used for larger parts, geometries, and thick-walled structures. In HSS, we have successfully completed recycling tests with an 80 to 20 configuration for thermoplastic polyurethane or TPU materials and increased the speed for running both axes in parallel on our VP200. This feature is already implemented on the large VX1000 HSS printer. A very large international sportswear manufacturer has recently done preliminary test tests in a 20,000 cycle setup with new GPU parts printed on VJ3D printers. And the results were much better than expected. There was significantly less loss in bounce and elasticity in the parts 3D printed with VJX, VJ HFS printers as compared to the other 3D printing technologies. This is excellent news. In our assembly department, we have implemented modular design streamline the process of 3D printer production. As we say, we have one platform in many applications. What does that mean exactly? For example, we offer our Wix 1000 3D printer in various materials and process configurations, like PM&A for investment casting, PDD for inorganic materials, and so on. What we do now is to assemble a basic machine, which is the same for all processes, and add on a process kit, which defines the type of material the printer will be using in the end. We expect this to reduce lead times and lower the costs related to the manufacturing of the 3D printers. On slide 19, you can see a part printed with write-up material on our Wix 1000 printer. As mentioned in the beginning, we are a technology company with a clear mission to establish new manufacturing standards. Consequently, we continue to invest a significant amount of our resources into research and development. With this, we are continuously expanding our IP base going forward. We believe this will help us on our path to become a profitable company. With that, I would now like to turn the call over to Woody. Woody?