Materialise Reports Fourth Quarter and Full Year 2021 Results

Rhea-AI Summary

Materialise NV (NASDAQ:MTLS) reported strong financial results for Q4 and full year 2021, showcasing an increase in total revenue by 26% for Q4 and 21% for the full year. Adjusted EBITDA also saw a significant rise, increasing by 42% in Q4 and 59% annually. The company achieved a net profit of 4,762 kEUR in Q4 compared to a loss in the previous year, and a total annual net profit of 13,145 kEUR. Materialise's cash position improved significantly with 196,028 kEUR at year-end, supporting future growth. The company plans to invest heavily in R&D and Sales & Marketing for further expansion.

Positive

• Q4 2021 total revenue increased by 26% to 56,989 kEUR from 45,301 kEUR in 2020.
• Full year 2021 revenue rose by 21% to 205,450 kEUR from 170,449 kEUR in 2020.
• Adjusted EBITDA for Q4 2021 grew by 42% to 10,490 kEUR, marking an 18.4% margin.
• Net profit for Q4 2021 was 4,762 kEUR, a turnaround from a loss of (2,039) kEUR in 2020.
• 2021 cash position improved to 196,028 kEUR from 111,538 kEUR in 2020.
• Link3D acquisition expected to enhance growth opportunities.

Negative

• Operating expenses increased by 5.9% to 29,481 kEUR for Q4 2021.
• Adjusted EBITDA expected to decrease by approximately 10% in 2022 due to increased investments.

LEUVEN, Belgium--(BUSINESS WIRE)-- Materialise NV (NASDAQ:MTLS), a leading provider of additive manufacturing and medical software and of sophisticated 3D printing services, today announced its financial results for the fourth quarter and full year ended December 31, 2021.

Highlights – Fourth Quarter 2021

• Total revenue increased 26% to 56,989 kEUR for the fourth quarter of 2021 from 45,301 kEUR for the 2020 period.
• Adjusted EBITDA increased 42% to 10,490 kEUR for the fourth quarter of 2021 from 7,371 kEUR for the 2020 period.
• Net profit for the fourth quarter of 2021 was 4,762 kEUR, or 0.08 EUR per diluted share, compared to a loss of (2,039) kEUR, or (0.04) EUR per diluted share, for the 2020 period.

Highlights – Full Year 2021

• Total revenue increased 21% to 205,450 kEUR for 2021 from 170,449 kEUR for 2020.
• Total deferred revenues from annual software sales and maintenance fees increased 4,045 kEUR to 34,287 kEUR compared to December 31, 2020.
• Adjusted EBITDA increased 59% to 32,497 kEUR for 2021 from 20,378 kEUR for 2020.
• Net profit for 2021 was 13,145 kEUR, or 0.23 EUR per diluted share, compared to a loss of (7,192) kEUR, or (0.13) EUR per diluted share, for 2020.
• Total cash was 196,028 kEUR at the end of 2021.

Executive Chairman Peter Leys commented, “For both the last quarter and full year 2021, Materialise posted all-time records in terms of revenue, Adjusted EBITDA and net profit, proving the strength of our business model even in a challenging period. The strategic positioning of our solutions and the technological innovation of our products were key drivers of our success, paving the way for very solid double-digit growth in each of our business units in the fourth quarter. Simultaneously, throughout the pandemic, our team members tenaciously pushed forward with the development of our software cloud platform and the roll out of our new business application infrastructure, positioning Materialise well to continue executing our long-term growth strategy.”

Fourth Quarter 2021 Results

Total revenue for the fourth quarter of 2021 increased 25.8% to 56,989 kEUR from 45,301 kEUR for the fourth quarter of 2020. Adjusted EBITDA increased 42.3% to 10,490 kEUR, compared to 7,371 kEUR for the same period in 2020. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the fourth quarter of 2021 increased to 18.4%, compared to 16.3% for the fourth quarter of 2020.

Revenue from our Materialise Software segment increased 19.3% to 12,183 kEUR from 10,216 kEUR for the same quarter last year. Adjusted EBITDA for the segment increased to 5,518 kEUR from 3,867 kEUR while the Adjusted EBITDA margin for the segment was 45.3%, compared to 37.9% for the prior-year period.

Revenue from our Materialise Medical segment increased 20.3% to 20,682 kEUR for the fourth quarter of 2021, compared to 17,188 kEUR for the same period in 2020. Adjusted EBITDA for the segment increased 31.3% to 6,358 kEUR from 4,844 kEUR, while the Adjusted EBITDA margin for the segment increased to 30.7% from 28.2%.

Revenue from our Materialise Manufacturing segment increased 34.9% to 24,135 kEUR from 17,889 kEUR for the fourth quarter of 2020. Adjusted EBITDA for the segment increased to 1,167 kEUR compared to 1,099 kEUR, while the Adjusted EBITDA margin for the segment was 4.8%, compared to 6.1% for the prior-year period.

Gross profit increased to 33,198 kEUR for the fourth quarter of 2021 from 26,165 kEUR for the same period last year. Gross profit as a percentage of revenue increased to 58.3%, compared to 57.8%.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 5.9% to 29,481 kEUR for the fourth quarter of 2021 from 27,843 kEUR for the fourth quarter of 2020.

Net other operating result improved to 1,260 kEUR compared to (296) kEUR for the fourth quarter of 2020.

Operating result increased to 4,976 kEUR, compared to (1,974) kEUR for the fourth quarter of 2020.

Net financial result for the fourth quarter of 2021 was 275 kEUR, compared to (596) kEUR for the fourth quarter of 2020.

The fourth quarter of 2021 contained net income tax expense of (490) kEUR, compared to net tax income of 531 kEUR for the fourth quarter of 2020.

As a result of the above, net profit for the fourth quarter of 2021 was 4,762 kEUR, compared to a net loss of (2,039) kEUR for the same period in 2020. Total comprehensive income for the fourth quarter of 2021 was 1,832 kEUR, compared to a loss of (1,181) kEUR for the 2020 period. This quarter’s comprehensive income included a (3,443) kEUR impairment of our equity interest in Essentium, Inc.

Full Year 2021 Results

Total revenues for the year ended December 31, 2021 increased 20.5% to 205,450 kEUR from 170,449 kEUR for the year ended December 31, 2020. Adjusted EBITDA for 2021 increased 59.5% to 32,497 kEUR from 20,378 kEUR for 2020. The Adjusted EBITDA margin increased to 15.8%, compared to 12.0% in 2020.

Revenues from our Materialise Software segment increased 9.9% to 42,902 kEUR for the year ended December 31, 2021 compared to 39,054 kEUR for the year ended December 31, 2020. The segment’s Adjusted EBITDA increased 17.9% to 15,784 kEUR from 13,383 kEUR. The segment’s Adjusted EBITDA margin increased to 36.8% in 2021, compared to 34.3% in 2020.

Revenues from our Materialise Medical segment grew by 18.9% for the year ended December 31, 2021 to 73,368 kEUR from 61,729 kEUR for the year ended December 31, 2020. The segment’s Adjusted EBITDA increased 48.5% to 20,669 kEUR from 13,914 kEUR. The segment’s Adjusted EBITDA margin increased to 28.2% in 2021, compared to 22.5% in 2020.

Revenues from our Materialise Manufacturing segment increased 28.3% to 89,334 kEUR for the year ended December 31, 2021 from 69,635 kEUR for the year ended December 31, 2020. The segment’s Adjusted EBITDA increased 152.5% to 6,429 kEUR from 2,546 kEUR. The segment’s Adjusted EBITDA margin increased to 7.2% in 2021 from 3.7% for 2020.

Operating profit increased to 12,217 kEUR for the year ended December 31, 2021 compared to a loss of (4,639) kEUR in the prior year.

Net financial income amounted to 1,519 kEUR, compared to net financial expenses of (3,542) kEUR for the year ended December 31, 2020. Income taxes amounted to (591) kEUR compared to 1,028 kEUR for the year ended December 31, 2020. Net result increased to 13,145 kEUR for 2021 from a net loss of (7,192) kEUR in 2020.

At December 31, 2021, we had cash and equivalents of 196,028 kEUR compared to 111,538 kEUR at December 31, 2020. Gross debt amounted to 99,107 kEUR (of which 21,202 kEUR was short term), compared to 115,110 kEUR at December 31, 2020.

Cash flow from operating activities for the year ended December 31, 2021 was 25,843 kEUR compared to 29,979 kEUR in the year ended December 31, 2020. Total capital expenditures for the year ended December 31, 2021 amounted to 11,721 kEUR. This amount included 2,570 kEUR of capitalized expenditures from intangible assets, of which 1,553 kEUR related to our ongoing internal digital transformation program.

Net shareholders’ equity at December 31, 2021 was 232,577 kEUR compared to 133,183 kEUR at December 31, 2020.

Link3D Acquisition

On January 4, 2022, Materialise acquired for 33.5 mUSD 100% of the equity interests of Link3D, an additive workflow and digital manufacturing software company that supports customers in major manufacturing industries to scale and integrate their AM operations across complex supply chains and IT environments. For the year ended December 31, 2021, Link3D realized revenue of approximately 2.3 mUSD and EBITDA of approximately (4.6) mUSD.

2022 Guidance

Mr. Leys concluded, “Our thoughts today are focused on the safety and security of our Ukrainian collaborators, and we are taking a variety of actions to assist them. At the same time, we believe that a war between countries where Materialise has no significant sales will not impact the fundamentals of our global business model.

“Particularly after our record performance in 2021, we believe our more mature lines of business, in particular in our Materialise Software and Materialise Medical segments, have the potential to continue to grow solidly with a healthy margin, and we plan to support these businesses accordingly. Simultaneously, we plan to increase our spending significantly, especially in R&D and in S&M, to accelerate the development of our new growth businesses, in particular our software cloud platform and our medical and wearable verticals.

“We expect our annual revenue for 2022 (including the results of Link3D) to grow by at least 10% compared to 2021. As we will be allocating significant portions of the expanding EBITDA margins of some of our more mature business lines to investments in our newer growth businesses (in particular the Link3D product portfolio), we expect our consolidated Adjusted EBITDA to decrease by approximately 10%.

“However, the recent onset of hostilities in Ukraine is adding complexity to our outlook for 2022, as we currently cannot assess how the global economy will react to the sanctions that are being imposed on Russia. We hope to have more visibility on these events and their potential short-term impact on our business when we release our first-quarter results.”

Note on Comparability

The year 2020 has been restated to reflect certain reclassification adjustments and the final accounting of the RS Print business combination. The fair value analysis with respect to the assets and liabilities acquired had not been finalized as of December 31, 2020. Within 12 months of acquisition, we completed the fair value analysis of the RS Print business combination, with corresponding adjustments to goodwill and deferred tax liabilities. The impact has been accounted for as retrospective adjustments to our consolidated statement of financial position as of December 31, 2020 and our consolidated income statement for the year ended December 31, 2020. It concerned a decrease of the goodwill of (1,743) kEUR and a decrease of the deferred tax liabilities of (1,823) kEUR.

Non-IFRS Measures

Materialise uses EBITDA and Adjusted EBITDA as supplemental financial measures of its financial performance. EBITDA is calculated as net profit plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBITDA. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of long-term investment and financing decisions, rather than the performance of the company’s day-to-day operations. As compared to net profit, these measures are limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company’s business, or the charges associated with impairments. Management evaluates such items through other financial measures such as capital expenditures and cash flow provided by operating activities. The company believes that these measurements are useful to measure a company’s ability to grow or as a valuation measurement. The company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA should not be considered as alternatives to net profit or any other performance measure derived in accordance with IFRS. The company’s presentation of EBITDA and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.

Exchange Rate

This document contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.1326, the reference rate of the European Central Bank on December 31, 2021.

Conference Call and Webcast

Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the fourth quarter of 2021 and other matters on Thursday, March 3, 2022, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on the call will include Wilfried Vancraen, Founder and Chief Executive Officer; Peter Leys, Executive Chairman; and Johan Albrecht, Chief Financial Officer. A question-and-answer session will follow management’s remarks.

• To access the conference call, please dial 844-469-2530 (U.S.) or 765-507-2679 (international), passcode 3644228.

The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed on the company’s website at http://investors.materialise.com. A webcast of the conference call will be archived on the company's website for one year.

About Materialise

Materialise incorporates 30 years of 3D printing experience into a range of software solutions and 3D printing services, which form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in Belgium, with branches worldwide, Materialise combines the largest groups of software developers in the industry with one of the largest and most complete 3D printing facilities in the world.

Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and business, including statements concerning, among other things, our current estimates for fiscal 2022 revenue and Adjusted EBITDA, results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies (including how our business, results of operations and financial condition could be impacted by the ongoing military conflict between Ukraine and Russia and economic sanctions related thereto), and the trends and competition that may affect the markets, industry or us. Such statements are subject to known and unknown uncertainties and risks. When used in this press release, the words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,” “should,” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the expectations of management under current assumptions at the time of this press release. These expectations, beliefs and projections are expressed in good faith and the Company believes there is a reasonable basis for them. However, the Company cannot offer any assurance that our expectations, beliefs and projections will actually be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We caution you that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of the forward-looking statements are subject to risks and uncertainties that may cause the Company's actual results to differ materially from our expectations, including risk factors described in the Company's most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. There are a number of risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements contained in this press release.

The Company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.

Consolidated income statements (Unaudited)

		for the three months ended December 31,									for the twelve months ended December 31,
In 000€		2021			2021			2020(*)			2021			2021			2020(*)
		U.S.$			€			€			U.S.$			€			€
Revenue		64,546			56,989			45,301			232,693			205,450			170,449
Cost of Sales		(26,946	)		(23,791	)		(19,137	)		(99,860	)		(88,169	)		(76,446	)
Gross Profit		37,600			33,198			26,165			132,833			117,281			94,003
Gross profit as % of revenue		58.3	%		58.3	%		57.8	%		57.1	%		57.1	%		55.2	%
Research and development expenses		(7,810	)		(6,896	)		(8,669	)		(30,457	)		(26,891	)		(27,104	)
Sales and marketing expenses		(15,200	)		(13,421	)		(10,938	)		(55,668	)		(49,151	)		(44,636	)
General and administrative expenses		(10,380	)		(9,165	)		(8,236	)		(36,924	)		(32,601	)		(29,337	)
Net other operating income (expenses)		1,427			1,260			(296	)		4,053			3,578			2,435
Operating (loss) profit		5,637			4,976			(1,974	)		13,837			12,217			(4,639	)
Financial expenses		(1,041	)		(919	)		(1,073	)		(4,645	)		(4,101	)		(5,996	)
Financial income		1,353			1,195			477			6,366			5,620			2,453
Share in loss of joint venture		-			-			-			-			-			(39	)
(Loss) profit before taxes		5,949			5,252			(2,570	)		15,558			13,736			(8,220	)
Income Taxes		(554	)		(490	)		531			(669	)		(591	)		1,028
Net (loss) profit for the period		5,395			4,762			(2,039	)		14,889			13,145			(7,192	)
Net (loss) profit attributable to:		-									-
The owners of the parent		5,401			4,769			(2,203	)		14,899			13,154			(7,044	)
Non-controlling interest		(8	)		(7	)		163			(10	)		(9	)		(148	)
Earning per share attributable to owners of the parent
Basic		0.09			0.08			(0.04	)		0.26			0.23			(0.13	)
Diluted		0.09			0.08			(0.04	)		0.26			0.23			(0.13	)
Weighted average basic shares outstanding		58,892			58,892			53,897			56,685			56,685			53,364
Weighted average diluted shares outstanding		59,025			59,025			53,897			56,843			56,843			53,364

(*)		The year 2020 has been restated to reflect the final accounting of the business combination with RS Print.
		Impact on Income Taxes and Net profit is 79 k€.

 

Consolidated statements of comprehensive income (Unaudited)

		for the three months ended December 31,									for the twelve months ended December 31,
In 000€		2021			2021			2020(*)			2021			2021			2020(*)
		U.S.$			€			€			U.S.$			€			€
Net profit (loss) for the period		5,395			4,762			(2,039	)		14,889			13,145			(7,192	)
Other comprehensive income
Recycling
Exchange difference on translation of foreign operations		636			561			369			2,437			2,152			(6,176	)
Non-recycling
Fair value adjustments through OCI - Equity instruments		(3,954	)		(3,491	)		489			(3,900	)		(3,443	)		489
Other comprehensive income (loss), net of taxes		(3,318	)		(2,930	)		858			(1,463	)		(1,292	)		(5,687	)
Total comprehensive income (loss) for the year, net of taxes		2,075			1,832			(1,181	)		13,425			11,853			(12,879	)
Total comprehensive income (loss) attributable to:
The owners of the parent		2,083			1,839			(1,289	)		13,436			11,863			(11,816	)
Non-controlling interests		(8	)		(7	)		108			(11	)		(9	)		(1,063	)

(*)		The year 2020 has been restated to reflect the final accounting of the business combination with RS Print.
		Impact on Net profit for the period is (79) k€.

 

Consolidated statement of financial position (Unaudited)

		As of December 31,		As of December 31,
In 000€		2021		2020(*)
Assets
Non-current assets
Goodwill		18,726		18,599
Intangible assets		31,668		32,981
Property, plant & equipment		84,451		88,267
Right-of-Use assets		9,054		10,996
Investments in joint ventures				-
Deferred tax assets		227		201
Investments in convertible loans		3,560		6,203
Investments in non-listed equity instruments		399		3,842
Other non-current assets		7,520		4,093
Total non-current assets		155,605		165,182
Current assets
Inventories		11,295		10,043
Trade receivables		41,541		30,871
Other current assets		8,940		8,290
Cash and cash equivalents		196,028		111,538
Total current assets		257,803		160,741
Total assets		413,408		325,923

(*)		The year 2020 has been restated to reflect the final accounting of the business combination with RS Print.
		Impact on Goodwill is (1,743) k€.

		As of December 31,			As of December 31,
In 000€		2021			2020*
Equity and liabilities
Equity
Share capital		4,467			4,096
Share premium		229,021			141,274
Retained earnings and other reserves		(911	)		(12,187	)
Equity attributable to the owners of the parent		232,577			133,183
Non-controlling interest		(2	)		-
Total equity		232,578			133,183
Non-current liabilities
Loans & borrowings		72,637			90,502
Lease liabilities		5,268			7,086
Deferred tax liabilities		4,371			4,983
Deferred income		4,952			5,328
Other non-current liabilities		2,168			396
Total non-current liabilities		89,396			108,295
Current liabilities
Loans & borrowings		17,849			13,984
Lease liabilities		3,353			3,538
Trade payables		20,171			17,698
Tax payables		783			974
Deferred income		33,306			29,556
Other current liabilities		15,972			18,695
Total current liabilities		91,434			84,445
Total equity and liabilities		413,408			325,923

(*)		The year 2020 has been restated to reflect the final accounting of the business combination with RS Print.
		Impact on Retained earnings is 79 k€ and impact on Deferred tax liabilities is (1,823) k€.

Consolidated statement of cash flows (Unaudited)

		for the twelve months ended December 31,
In 000€		2021			2020*
Operating activities
Net (loss) profit for the period		13,145			(7,192	)
Non-cash and operational adjustments
Depreciation of property plant & equipment		15,541			14,932
Amortization of intangible assets		4,975			4,742
Impairment of goodwill and intangible assets		177			4,606
Share-based payment expense		(1,036	)		752
Loss (gain) on disposal of property, plant & equipment		210			10
Movement in provisions		99			137
Movement reserve for bad debt and slow moving inventory		255			516
Financial income		(5,620	)		(2,300	)
Financial expense		4,101			5,821
Impact of foreign currencies		73			61
Share in loss (gain) of a joint venture (equity method)		-			39
(Deferred) income taxes		591			(1,049	)
Other non-current liabilities		-			(1,093	)
Working capital adjustments		(5,890	)		12,512
Decrease (increase) in trade receivables and other receivables		(10,920	)		9,205
Decrease (increase) in inventories and contracts in progress		(1,423	)		2,724
Increase (decrease) in trade payables and other payables		6,453			583
Income tax paid & Interest received		(776	)		(2,515	)
Net cash flow from operating activities		25,843			29,979

(*)		The year 2020 has been restated to reflect the final accounting of the business combination with RS Print.
		Impact on Net profit for the period is 79 k€ and impact on (Deferred) income taxes is (79) k€.

		for the twelve months ended December 31,
In 000€		2021			2020
Investing activities
Purchase of property, plant & equipment		(7,934	)		(11,032	)
Purchase of intangible assets		(3,788	)		(6,618	)
Proceeds from the sale of property, plant & equipment & intangible assets (net)		462			552
Acquisition of subsidiary (net of cash)		(875	)		(8,031	)
(Convertible) Loans granted		(999	)		(2,836	)
Other equity investments in non-listed entities		-			(300	)
Net cash flow used in investing activities		(13,133	)		(28,265	)
Financing activities
Repayment of loans & borrowings		(14,277	)		(13,736	)
Repayment of leases		(3,775	)		(3,640	)
Capital increase		88,117			4,112
Interest paid		(2,326	)		(2,268	)
Other financial income (expense)		3,417			(1,356	)
Net cash flow from (used in) financing activities		71,156			(16,888	)
Net increase/(decrease) of cash & cash equivalents		83,866			(15,174	)
Cash & Cash equivalents at the beginning of the year		111,538			128,897
Exchange rate differences on cash & cash equivalents		624			(2,184	)
Cash & cash equivalents at end of the year		196,028			111,539

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

		for the three months ended December 31,				for the twelve months ended December 31,
In 000€		2021		2020 (*)		2021		2020 (*)
Net profit (loss) for the period		4,762		(2,039)		13,145		(7,192)
Income taxes		490		(531)		591		(1,028)
Financial expenses		919		1,073		4,101		5,996
Financial income		(1,195)		(477)		(5,620)		(2,453)
Depreciation and amortization		5,277		5,160		20,516		19,775
Share in loss of joint venture		-		-		-		39
EBITDA		10,253		3,185		32,733		15,136
Share-based compensation expense (1)		44		286		(834)		1,344
Revaluation of fair value due to business combinations (2)		8		(770)		8		(770)
Impairments (3)		177		4,606		177		4,606
Acquisition-related expenses of business combinations (4)		8		63		413		63
Adjusted EBITDA		10,490		7,371		32,497		20,378

(1)		Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.
(2)		Represents a positive revaluation of our initial 50% interest in RS Print after our acquisition of the remaining interest in the joint-venture.
(3)		Impairments represents in 2021 the impairment of capitalized expenditures related to the goodwill of metal company Aldema BV (177kEUR),
		and in 2020 the impairment of capitalized expenditures related to our tracheal splint development program (2,090kEUR)
		and related to the goodwill and intangible assets of Engimplan (2,516 kEUR).
(4)		Acquisition-related expenses of business combinations represents expenses incurred in connection with the RS Print acquisition in 2020.
(*)		The year 2020 has been restated to reflect the final accounting of the business combination with RS Print.
		Impact on Net profit for the period is 79 k€ and impact on (Deferred) income taxes is (79) k€.

Segment P&L (Unaudited)

In 000€		Materialise Software			Materialise Medical			Materialise Manufacturing			Total segments			Unallocated (1)			Consolidated
For the three months ended December 31, 2021
Revenues		12,183			20,682			24,135			57,000			(11	)		56,989
Segment (adj) EBITDA		5,518			6,358			990			12,866			(2,376	)		10,490
Segment (adj) EBITDA %		45.3	%		30.7	%		4.1	%		22.6	%					18.4	%
For the three months ended December 31, 2020
Revenues		10,216			17,188			17,889			45,292			9			45,301
Segment (adj) EBITDA		3,867			4,844			1,099			9,811			(2,440	)		7,371
Segment (adj) EBITDA %		37.9	%		28.2	%		6.1	%		21.7	%					16.3	%
In 000€		Materialise Software			Materialise Medical			Materialise Manufacturing			Total segments			Unallocated (1)			Consolidated
For the twelve months ended December 31, 2021
Revenues		42,902			73,368			89,334			205,604			(154	)		205,450
Segment (adj) EBITDA		15,784			20,669			6,252			42,704			(10,207	)		32,497
Segment (adj) EBITDA %		36.8	%		28.2	%		7.0	%		20.8	%					15.8	%
For the twelve months ended December 31, 2020
Revenues		39,054			61,729			69,635			170,418			31			170,449
Segment (adj) EBITDA		13,383			13,914			2,546			29,843			(9,465	)		20,378
Segment (adj) EBITDA %		34.3	%		22.5	%		3.7	%		17.5	%					12.0	%

(1) Unallocated segment adjusted EBITDA consists of corporate research and development, corporate headquarter costs and corporate other operating income (expense), and the added share-based compensation expenses, acquisition related expenses of business combinations, impairments and fair value of business combinations that are included in Adjusted EBITDA.

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

		for the three months ended December 31,						for the twelve months ended December 31,
In 000€		2021			2020(*)			2021			2020(*)
Net profit (loss) for the period		4,762			(2,039	)		13,145			(7,192	)
Income taxes		490			(531	)		591			(1,028	)
Financial cost		919			1,073			4,101			5,996
Financial income		(1,195	)		(477	)		(5,620	)		(2,453	)
Share in loss of joint venture		-			-			-			39
Operating (loss) profit		4,976			(1,974	)		12,217			(4,639	)
Depreciation and amortization		5,277			5,160			20,516			19,775
Corporate research and development		812			807			3,149			2,989
Corporate headquarter costs		2,923			3,300			10,350			15,955
Other operating income (expense)		(1,122	)		2,518			(3,527	)		(4,237	)
Segment adjusted EBITDA		12,866			9,811			42,704			29,843

(*)		The year 2020 has been restated to reflect the final accounting of the business combination with RS Print.
		Impact on Net profit for the period is 79 k€ and impact on (Deferred) income taxes is (79) k€.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220303005081/en/

Investor Relations

Harriet Fried

LHA

212.838.3777

hfried@lhai.com

Source: Materialise NV

FAQ

What were Materialise's financial results for Q4 2021?

Materialise reported a 26% increase in Q4 2021 total revenue to 56,989 kEUR and net profit of 4,762 kEUR.

How did Materialise's Adjusted EBITDA perform in 2021?

Adjusted EBITDA increased by 59% to 32,497 kEUR for the full year 2021.

What challenges does Materialise foresee in 2022?

Materialise expects a potential 10% decrease in Adjusted EBITDA in 2022 due to increased investments, along with uncertainties from geopolitical events.

What was the cash position of Materialise at the end of 2021?

Materialise ended 2021 with a cash position of 196,028 kEUR.

What is the significance of the Link3D acquisition for Materialise?

The acquisition of Link3D is expected to enhance Materialise's growth in the additive manufacturing sector.