Half-year 2020 financial resultsParis, September 23, 2020
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FORWARD-LOOKING STATEMENT
This presentation contains statements on past events and forward-looking statements including statements regarding future goals or targets. Forward-looking statements reflect current expectations for results and future events.
Such forward-looking statements and targets depend on known and unknown risks, uncertainties and other factors that may cause actual results, performance or events to differ materially from those anticipated herein. All these risks and uncertainties could affect the Group's future ability to achieve its targets. Risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements and targets include, among other things: the risks and uncertainties mentioned in this presentation ; the strength of the competition; market growth; health crisis; currency fluctuations; interest rate fluctuations; raw materials price fluctuations; armed conflicts or political instability; obtaining the export authorizations that may be required for certain activities; control of costs and expenses; changes in tax legislation, rules, regulations or enforcement; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel and key personnel; the evolution, interpretation and uniform application and implementation of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements; supply chain and manufacturing bottlenecks; the performance of our business partners (subcontractors, agents, suppliers, etc.).
Some of these risk factors are set forth and detailed in our Annual report. This list of risks, uncertainties and other factors is not exhaustive. Other non-anticipated, unknown or unforeseeable factors could also have material adverse effects on our targets.
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TABLE OF CONTENTS
1. INTRODUCTION
2. HALF-YEAR 2020 FINANCIAL HIGHLIGHTS
3. OUTLOOK
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INTRODUCTION
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▪ Negative impact of Covid-19 but recovery underway in all segments
▪ Continued consolidation and product development to shape the future
▪ Favorable customers trends and opportunities arising from the crisis, though further uncertainty ahead
▪ Strong cash position
FIRST-HALF 2020 PERFORMANCE DEMONSTRATES THE AGILITY OF OUR OPERATIONS
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RECOVERY UNDERWAY IN ALL SEGMENTS BUT H1 FINANCIAL PERFORMANCE HEAVILY IMPACTED BY COVID-19 AS EXPECTED
REVENUE
• Negative impact of Covid-19 Group-wide with stronger impact on Medical activities
• Resilience of Materials business
• Recovery trend
PROFITABILITY
• Negative impact of Covid-19 Group-wide but margins improvement in Systems division
• Successful cost efficiency initiatives to protect short-term profitability and implementation of government measures
• Sustained level of investment in products to drive future growth
• Noncash one-off
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Marketing expenses
Cancelled or delayed tradeshows
Other operating expenses
Travel and meetings
Consolidation
Accelerated synergies and efficiency measures
EFFICIENT COST MANAGEMENT
Personnel expenses
Positive impact of governments support
measures Hiring restrictions
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WE CONTINUE TO INVEST IN PRODUCTS AND TECHNOLOGIES DRIVING THE FUTURE OF 3D PRINTING FOR PRODUCTION APPLICATIONS
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HALF-YEAR 2020 FINANCIAL HIGHLIGHTS
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HALF-YEAR 2020 P&L HIGHLIGHTS
(€ million) H1 2020 H1 2019 Change
Revenue 26.8 35.3 -23.9 %
EBITDA1 1.4 2.6 -€1.1 M
EBITDA margin (%) 5.3 % 7.3 % -197 bps
EBIT2 (2.9) (1.0) -€1.9 M
EBIT margin (%) -10.9 % -2.8 % -813 bps
Other items of operating income (7.0) (1.5) -€5.5M
Operating income (10.0) (2.4) -€7.5 M
Financial result (0.2) (0.1) -€0.1 M
Taxes 1.4 (0.3) +€1.7 M
Net result (8.7) (2.8) -€5.9 M
Net result group share (8.7) (2.8) -€5.9 M
(1) Operating income before "Net depreciation, amortization and provisions", "Other items of operating income" and “Share in the results of associated companies”.(2) Operating income before "Net depreciation, amortization and provisions" and “Share in the results of associated companies”.
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SYSTEMS DIVISION HALF-YEAR 2020 HIGHLIGHTSTOP LINE IMPACTED BY MACRO SITUATION BUT MARGIN INCREASING
(1) Operating income before "Net depreciation, amortization and provisions", "Other items of operating income" and “Share in the results of associated companies”.
21,3
16,8
H2
Revenue (€M)
1,3
1,4
EBITDA1 (€M)
• Improving margins at 8.1% vs 6.1% in H1 2019
• Accelerated synergies in Printers activities ; Improving margins in Materials
• Implementation of cost saving initiatives and benefit from governments support measures
• Strong hit of Covid-19 but month by month improvement
• Resilience of Materials activity
• Commercial achievement in Software
-20.9 % +5.6 %
H1 19 H1 20 H1 19 H1 20
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PRODUCTS DIVISION HALF-YEAR 2020 HIGHLIGHTSNEGATIVE IMPACT IN H1 BUT IMPROVING TRENDS
14,2
9,9
H2
-30.4 %
Revenue (€M)
1,8
0,6
H2
EBITDA1 (€M)
• Negative impact of drop in revenues
• Benefit from government support measures
• Strong hit of Covid-19 due to the closing of health professionals
• Pick up in June in Medicals
• On-demand activities still recovering; limited exposure to automotive and aerospace markets compared to peers
-64.9 %
(1) Operating income before "Net depreciation, amortization and provisions", "Other items of operating income" and “Share in the results of associated companies”.
H1 2019 H1 2020H1 2019 H1 2020
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CHANGE IN NET CASH POSITION AS OF JUNE 30, 2020SECURED CASH POSITION SUSTAINS ABILITY TO INVEST
€ million
AVAILABLE CASH OF €21.6M AS OF END OF JUNE 2020
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1 Before IFRS16 leases debt and including treasury shares
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OUTLOOK
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▪ Progressive pick up in activity in May and June
▪ Recovery trend expected to continue in H2 while macro uncertainty remains in the near term
▪ Acceleration of industry digitalization for mass production will support rise of leading players in additive manufacturing
▪ Continued innovation focus to improve customer experience and efficiency will contribute to strengthening our positions
WE REMAIN CONFIDENT IN OUR LONG-TERM PERSPECTIVES
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ACCELERATED TRENDS SUPPORT LONG-TERM GROWTH OF OUR BUSINESSES
Evolving business models Shift toward more local supply chains
Accelerated digital transformationAdjust production flow
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A LEADING POSITION IN A BUYOANT AND ATTRACTIVE MARKET
Printers & Materials
ManufacturingMedical & Software
• IPO on-going
• Founded in 2015
• €26M revenue in 2019
• -$96M 2019 EBITDA
• $1bn raised on private equity and the stock market
• Founded in 2013
• Undisclosed financials
• $680M private-equity raised
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WE ARE WELL POSITIONED TO LEVERAGE THE ONGOING RECOVERY AND SEIZE GROWTH OPPORTUNITIES
Recurringrevenues
Solid balance sheet and liquidity
Wellpositioned for
M&A
Leading position on
overallAdditive 2.0 value chain
Continuedinvestment in products and technologies
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Q&A