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Nano Dimension Announces Best Third Quarter, Nine Month Revenue and Gross Margin Results in the Company’s History

22% Organic Growth for Q3/2023
28% Organic Growth for the Frist 9 Months of 2023
22% Higher Revenue Over Q3/2022
33% Higher Revenue Over First 9 Months of 2022
44% Q3/2023 Gross Margin, Up From 18% in Q3/2022
44% First Nine Months 2023 Gross Margin, Up From 20% in the Same Period in 2022
48% Q3/2023 Adjusted Gross Margin, Up From 28% in Q3/2022
48% First Nine Months 2023 Adjusted Gross Margin, Up From 36% in the Same Period in 2022

CEO Letter Outlines Additional Actions to Reshape Business,
Enhance Future Prospects and Drive Value

Conference Call to be Held Today at 9:00 AM EDT

WALTHAM, Mass., Nov. 28, 2023 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM, “Nano Dimension” or “Nano” or the “Company”), a leading supplier of Additively Manufactured Electronics (“AME”) and multi-dimensional polymer, metal & ceramic Additive Manufacturing (“AM”), today announced financial results for the third quarter ended September 30th, 2023.

Revenue

Gross Margin

Adjusted1 Gross Margin

Net Loss

Adjusted EBITDA

Details regarding Adjusted EBITDA and Adjusted gross profit can be found below in this press release under “Non-IFRS Measures.”

______________________

1 Excluding cost of revenues from depreciation and amortization and share-based payments expenses.
2 Excluding share-based payments expenses and depreciation.
3 Excluding share-based payments expenses and depreciation.

CEO MESSAGE TO SHAREHOLDERS:

Dear Shareholders,

Nano Dimension’s strong organic growth continues. Our efforts to scale our business with a focus on revenue growth and gross margin improvement are delivering results. Revenue of $41.9 million for the first nine months of 2023 was 33% higher than the same period in 2022. Gross margins and adjusted gross margins also increased considerably for the first nine months of 2023 compared to same period in 2022 from 20% to 44% and 36% to 48%, respectively.

This revenue increase happened during notable macroeconomic uncertainty which challenged all companies in our ecosystem. The fact that our leading peers have posted year-over-year declines in revenue for their respective first nine months of 2023 makes our 33% growth even more notable. This is a result of our successful efforts to close new high-profile customer relationships, secure recurring sales from existing customers, and develop new products that open greater opportunities.

The marked improvements in our gross margins – IFRS and adjusted – are driven by our meticulous, ongoing efforts to improve our supply chain and how we make and deliver our products. We have been laser-focused on this effort as we work to drive profitability. A positive bottom line cannot happen without a healthy margin, and we have positioned the Company for just that.

I would like to acknowledge the investors and other stakeholders who have supported us on an individual and collective level with their concern and well-wishes as the war of Israel against Hamas terrorism (the “War”) continues.

Our focus remains on meeting our business targets, especially the new initiatives we have implemented to drive improved profitability, as described below. Despite the War, we are confident that we are on track to meet our full-year 2023 expectations.

Another unwelcomed hostility, of the “business type”, involved our interaction with dissident shareholders this year. It is unfortunate, despite our attempts to settle these matters in an amicable manner, that we needed to deploy time and money, over $15M in 2023 alone, to defend Nano against the self-interested pursuit of these shareholders. That said, we are grateful that – through your support – their efforts were defeated at the last Annual Shareholders Meeting.

We should also note that we have acted on the feedback we received from ISS, Glass Lewis and shareholders throughout this process, including making changes to our board of directors’ composition and governance, to ensure we are best positioned to guide Nano in delivering value for you, our shareholders.

In addition to those actions, we shall finish 2023 and orient 2024 around a new initiative – Reshaping Nano (the “Initiative”). Considering the current macro environment as well as investor feedback gathered through our ongoing engagements, the Initiative is designed to enable Nano Dimension to become operating income positive at some point in 2025, and potentially cash flow positive earlier. To do this, we are thinking critically about our operating expenses across R&D, sales & marketing, and general & administrative expenses.

Over the last several years, we have expanded Nano’s platform from a niche company focused on AME into a broad AM, Additive Electronics, leveraging our DeepCube Artificial Intelligence for industrial applications leader. The Initiative will be the next step in driving performance across our platform by leveraging synergies and setting clear financial objectives for each group across the business and the product lines within them. We believe that the Initiative will result in approximately $30 million of annual savings, which should begin to appear in our Q1/2024 results. It is important to note that this strategy is not sacrificing innovation and future growth engines. This is about setting financial objectives that reflect the maturity of the respective groups and product lines. We will continue to invest where we see the most robust future opportunities.

In parallel with the Initiative, we quickly approach the epicenter of mergers and acquisitions (“M&A”) opportunities, with the benefit of our significant cash firepower and the reduction of valuations in our industry. As we have stated previously, we believe that our industry is ripe for consolidation and we are well-positioned with both the financial, managerial and leadership resources to execute these efforts. As we pursue this path, we will balance potential M&A, ground-breaking R&D, and high-returning go-to-market investments with repurchasing shares at attractive valuation levels, particularly in light of Nano Dimension’s shares currently trading at a discount to net asset value. We will remain disciplined in our capital allocation approach to ensure we are capitalizing on the best way to deliver shareholder value.

Thank you for your support.

Yoav Stern
Chief Executive Officer and a member of the Board of Directors
Nano Dimension

FINANCIAL RESULTS:

Third Quarter 2023 Financial Results

Nine months ended September 30, 2023 Financial Results

Balance Sheet Highlights

CONFERENCE CALL INFORMATION:

The Company will host a conference call to discuss the Q3/2023 financial results today, November 28th, 2023, at 9:00 a.m. EDT (4:00 p.m. IDT). Please dial-in or connect via webcast through the below details. Those dialing-in will be able to ask questions. Those connecting via webcast will see a live presentation.

There will be a replay available from a link on Nano Dimension’s website at http://investors.nano-di.com/events-and-presentations.

About Nano Dimension

Nano Dimension’s (Nasdaq: NNDM) vision is to transform existing electronics and mechanical manufacturing into Industry 4.0 environmentally friendly & economically efficient precision additive electronics and manufacturing – by delivering solutions that convert digital designs to electronic or mechanical devices - on demand, anytime, anywhere.

Nano Dimension’s strategy is driven by the application of deep learning based AI to drive improvements in manufacturing capabilities by using self-learning & self-improving systems, along with the management of a distributed manufacturing network via the cloud.

Nano Dimension has served over 2,000 customers across vertical target markets such as aerospace & defense, advanced automotive, high-tech industrial, specialty medical technology, R&D and academia. The company designs and makes Additive Electronics and Additive Manufacturing 3D printing machines and consumable materials. Additive Electronics are manufacturing machines that enable the design and development of High-Performance-Electronic-Devices (Hi-PED®s). Additive Manufacturing includes manufacturing solutions for production of metal, ceramic, and specialty polymers based applications - from millimeters to several centimeters in size with micron precision.

Through the integration of its portfolio of products, Nano Dimension is offering the advantages of rapid prototyping, high-mix-low-volume production, IP security, minimal environmental footprint, and design-for-manufacturing capabilities, which is all unleashed with the limitless possibilities of additive manufacturing.

For more information, please visit www.nano-di.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Nano Dimension’s current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Nano Dimension could differ materially from those described in or implied by the statements in this press release. For example, Nano Dimension is using forward-looking statements when it discusses its organic growth, potential profitability, opportunities, full-year 2023 expectations, ability to create value for shareholders, the potential benefits from the Initiative, including estimated annual savings, ability to become operating income positive and cash flow positive, potential M&A opportunities and investments, future share repurchases and future capital allocation. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Nano Dimension’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 30, 2023, and in any subsequent filings with the SEC. Except as otherwise required by law, Nano Dimension undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Nano Dimension is not responsible for the contents of third-party websites.

NANO DIMENSION INVESTOR RELATIONS CONTACT

Investor Relations | ir@nano-di.com

 
Unaudited Consolidated Statements of Financial Position as at
 
 September 30,December 31,
 2022 2023 20224 
(In thousands of USD)(Unaudited)(Unaudited) 
Assets   
Cash and cash equivalents        370,197         489,323         685,362 
Bank deposits        650,111         383,354         346,663 
Restricted deposits        77         60         60 
Trade receivables        5,929         10,310         6,342 
Other receivables        2,925         4,845         6,491 
Inventory        17,837         21,276         19,400 
Total current assets        1,047,076         909,168         1,064,318 
    
Restricted deposits        521         846         850 
Bank deposits        28,404                  — 
Investment in securities        139,707         131,951         114,984 
Deferred tax        480         259         115 
Other receivables        802         831         809 
Property plant and equipment, net        13,166         14,814         5,843 
Right-of-use assets        13,972         12,963         16,539 
Intangible assets        31,799         2,235         — 
Total non-current assets        228,851         163,899         139,140 
Total assets        1,275,927         1,073,067         1,203,458 
    
Liabilities   
Trade payables        2,925         8,148         3,722 
Financial derivatives and deferred consideration        8,189                  8,798 
Other payables        18,864         28,624         24,150 
Current portion of other long-term liability        370         235         363 
Total current liabilities        30,348         37,007         37,033 
    
Liability in respect of government grants        1,507         1,861         1,492 
Employee benefits        296         2,468         1,462 
Liability in respect of warrants        124                  69 
Lease liability        10,519         9,000         12,374 
Deferred tax liabilities        587                  — 
Other long-term liabilities        180                  — 
Loan from banks        785         588         736 
Total non-current liabilities        13,998         13,917         16,133 
Total liabilities        44,346         50,924         53,166 
    
Equity   
Non-controlling interests        865         660         767 
Share capital        387,646         399,327         388,406 
Share premium and capital reserves        1,291,290         1,299,303         1,296,194 
Treasury shares        (1,509)        (89,375)        (1,509)
Foreign currency translation reserve        (848)        938         583 
Remeasurement of net defined benefit liability (IAS 19)        3,127         1,448         2,508 
Accumulated loss        (448,990)        (590,158)        (536,657)
Equity attributable to owners of the Company        1,230,716         1,021,483         1,149,525 
Total equity        1,231,581         1,022,143         1,150,292 
Total liabilities and equity        1,275,927         1,073,067         1,203,458 

____________________________

4 The December 31, 2022 balances were derived from the Company’s audited annual financial statements

 
Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income
    
 Nine Months
Ended

September 30,
Three Months Ended
September 30,
Year ended
December 31,
 
 2022 2023 2022 2023 2022 
 ThousandsThousandsThousandsThousandsThousands
 USDUSDUSDUSDUSD
Revenues        31,529         41,860         9,998         12,158         43,633 
Cost of revenues        21,159         23,186         7,428         6,739         24,943 
Cost of revenues - write-down of inventories and impairment of assets recognized in business combination and technology        3,990         244         771         50         4,639 
Total cost of revenues        25,149         23,430         8,199         6,789         29,582 
Gross profit        6,380         18,430         1,799         5,369         14,051 
Research and development expenses        54,770         48,424         18,535         12,788         75,763 
Sales and marketing expenses        29,075         23,418         9,652         7,715         38,833 
General and administrative expenses        21,366         44,203         7,417         20,848         30,457 
Impairment losses on intangible assets        —                  —                  40,523 
Operating loss        (98,831)        (97,615)        (33,805)        (35,982)        (171,525)
Finance income        13,826         34,592         7,001         11,101         22,965 
Finance expense18,064
         8,385         1,601         2,031         11,680 
Finance income (expense) from investment in securities        (38,068)16,967                 (38,681)        (40,234)        (67,791)
Loss before taxes on income        (141,137)        (54,441)        (67,086)        (67,146)        (228,031)
Taxes benefit (expenses)        742         121         (47)        273         (264)
Loss for the period        (140,395)        (54,320)        (67,133)        (66,873)        (228,295)
Loss attributable to non-controlling interests        (639)        (819)        (202)        (269)        (872)
Loss attributable to owners        (139,756)        (53,501)        (66,931)        (66,604)        (227,423)
      
Loss per share     
Basic loss per share(0.54)(0.21)(0.26)(0.26)(0.88)
      
Other comprehensive income items that after initial recognition in comprehensive income were or will be transferred to profit or loss     
Foreign currency translation differences for foreign operations        (2,351)        344         (1,113)        (253)        (844)
Other comprehensive income items that will not be transferred to profit or loss     
Remeasurement of net defined benefit liability (IAS 19), net of tax        3,127         (1,060)        —                  2,508 
Total other comprehensive income (loss) for the period        776         (716)        (1,113)        (253)        1,664 
Total comprehensive loss for the period        (139,619)        (55,036)        (68,246)        (67,126)        (226,631)
Comprehensive loss attributable to non-controlling interests        (735)        (830)        (247)        (284)        (892)
Comprehensive loss attributable to owners of the Company        (138,884)        (54,206)        (67,999)        (66,842)        (225,739)


 
Consolidated Statements of Changes in Equity (Unaudited)
(In thousands of USD)
 
 Share
capital
Share
premium
and
capital
reserves
Remeasurement
of IAS 19
Treasury
shares
Foreign
currency
translation
reserve
Accumulated
loss
TotalNon-
controlling
interests
Total
equity
 ThousandsThousandsThousandsThousandsThousandsThousandsThousandsThousandsThousands
For the nine months ended
September 30, 2023:
USDUSDUSDUSDUSDUSDUSDUSDUSD
Balance as of December 31, 2022        388,406        1,296,194         2,508         (1,509)        583        (536,657)        1,149,525         767         1,150,292 
Investment of non-controlling party in subsidiary                                                                     723         723 
Loss for the period                                                   (53,501)        (53,501)        (819)        (54,320)
Other comprehensive income (loss) for the period                         (1,060)                 355                 (705)        (11)        (716)
Exercise of warrants, options and
conversion of convertible notes
        10,921        (10,921)                                                               
Repurchase of
treasury shares
                                  (87,866)                         (87,866)                 (87,866)
Share based payment acquired                (1,780)                                           (1,780)                 (1,780)
Share-based payments                15,810                                            15,810                  15,810 
Balance as of September 30, 2023        399,327        1,299,303         1,448         (89,375)        938        (590,158)        1,021,483         660         1,022,143 


 Share
capital
Share
premium
and capital
reserves
Remeasurement of
IAS 19
Treasury
shares
Foreign
currency
translation
reserve
Accumulated
loss
TotalNon-
controlling
interests
Total
equity
ThousandsThousandsThousandsThousandsThousandsThousandsThousandsThousandsThousands
For the three months ended
September 30, 2023:
USDUSDUSDUSDUSDUSDUSDUSDUSD
Balance as of June 30, 2023        396,238        1,298,124         1,448        (24,768)        1,176         (523,554)        1,148,664         892         1,149,556 
Investment of non-controlling party in subsidiary                                                                     52         52 
Loss for the period                                                   (66,604)        (66,604)        (269)        (66,873)
Other comprehensive loss for the period                                          (238)                 (238)        (15)        (253)
Exercise of options and
conversion of convertible notes
        3,089        (3,089)                                                              
Repurchase of
treasury shares
                                 (64,607)                          (64,607)                 (64,607)
Share-based payments                4,268                                            4,268                  4,268 
Balance as of September 30, 2023        399,327        1,299,303         1,448        (89,375)        938         (590,158)        1,021,483         660         1,022,143 


 
Consolidated Statements of Cash Flows (Unaudited)
(In thousands of USD)
    
 Nine Months Ended
September 30,
Three Months Ended
September 30,
Year ended
December 31
 2022 2023 2022 2023 2022 
Cash flow from operating activities:     
Net loss        (140,395)        (54,320)        (67,133)        (66,873)        (228,295)
Adjustments:     
Depreciation and amortization        6,084         4,551         3,228         1,588         7,283 
Impairment losses        —          —                  40,523 
Financing (income) expenses, net        9,089         (26,675)        (3,466)        (9,053)        (1,769)
Revaluation of financial liabilities accounted at fair value        (4,851)        468         (1,934)        (17)        (4,516)
Revaluation of financial assets accounted at fair value        38,068         (16,967)        38,681         40,234         62,791 
Loss (gain) from disposal of property plant and equipment and right-of-use assets        91         333         97         (12)        948 
Increase in deferred tax        (1,441)        (95)        (109)                 (581)
Share-based payments        26,637         15,810         7,300         4,268         32,563 
Other        121         121         8         53         166 
         73,798         (22,454)        43,805         37,061         137,408 
Changes in assets and liabilities:             
Increase in inventory        (3,384)        (3,253)        (1,506)        (2,041)        (4,603)
(Increase) decrease in other receivables        3,574         1,659         3,871         990         (1,978)
(Increase) decrease in trade receivables        (1,761)        (3,951)        198         2,088         (1,992)
Increase (decrease) in other payables        1,333         2,908         (64)        4,253         5,281 
Increase (decrease) in employee benefits        1,101         (992)        (635)        (593)        1,497 
Increase (decrease) in trade payables        (42)        4,742         (881)        5,570         628 
      
         821         1,113         983         10,267         (1,167)
Net cash used in operating activities        (65,776)        (75,661)        (22,345)        (19,545)        (92,054)
      
Cash flow from investing activities:     
Change in bank deposits        (187,412)        (37,016)        (140,921)        114,375         141,555 
Interest received        4,634         29,804         2,143         11,806         17,465 
Change in restricted bank deposits        (16)        (38)        59         (4)        (327)
Acquisition of property plant and equipment        (6,059)        (9,066)        (1,520)        (1,945)        (9,388)
Acquisition of intangible asset         (1,524)        —         (1,524)        — 
Acquisition of subsidiaries, net of cash acquired        (31,058)                 (12,899)                 (31,057)
Payment of a liability to pay a contingent consideration of business combination        (10,708)        (9,255)        (709)                 (10,708)
Acquisition of financial assets in fair value through profit and loss        (177,775)                 (159,972)                 (177,775)
Decrease in deposit in escrow        —                  —                  3,362 
Other        —                  —                  (800)
Net cash from (used in) investing activities        (408,394)        (27,095)        (313,819)        122,708         (67,673)
      
Cash flow from financing activities:     
Lease payments        (3,088)        (3,640)        (1,207)        (1,169)        (4,151)
Repayment long-term bank debt        (303)        (193)        (85)        (97)        (406)
Proceeds from non-controlling interests        510         550         510                  510 
Amounts recognized in respect of government grants liability        (132)        (225)        (39)        (53)        (221)
Payments of share price protection recognized in business combination        (744)        (1,780)                  (1,005)
Repurchase of treasury shares        —         (85,726)        —         (65,985)        — 
Net cash used in financing activities        (3,757)        (91,014)        (821)        (67,304)        (5,273)
Increase (decrease) in cash        (477,927)        (193,770)        (336,985)        35,859         (165,000)
Cash at beginning of the period        853,626         685,362         706,220         454,555         853,626 
Effect of exchange rate fluctuations on cash        (5,502)        (2,269)        962         (1,091)        (3,264)
Cash at end of the period        370,197         489,323         370,197         489,323         685,362 
      
Non-cash transactions:     
Property plant and equipment and intangible asset acquired on credit        509         410         474         82         52 
Repurchase of treasury shares on credit        —         2,140         —         (1,378)        — 
Recognition of a right-of-use asset        11,536         199         286                  15,196 
Acquisition of financial assets in fair value through profit and loss         —         (2,158)        —         — 
          

Non-IFRS Measures

The following are reconciliations of income before taxes, as calculated in accordance with International Financial Reporting Standards (“IFRS”), to EBITDA and Adjusted EBITDA, as well as of gross profit, as calculated in accordance with IFRS, to Adjusted Gross Profit:

 For the Nine-Months
Period Ended September
30,
For the Three-Months
Period Ended September
30,
 2023 
 In thousands of USDIn thousands of USD
Net loss        (54,320)        (66,873)
Tax income        (121)        (273)
Depreciation and amortization        4,551         1,588 
Interest income        (34,575)        (11,008)
EBITDA (loss)        (84,465)        (76,566)
Finance income from revaluation of assets and liabilities        (16,139)        40,160 
Exchange rate differences        7,490         2,015 
Share-based compensation expenses        15,810         4,268 
Adjusted EBITDA (loss)        (77,304)        (30,123)


 For the Nine-Months Period
Ended

September 30,
For the Three-Months Period
Ended

September 30,
 2022202320222023
Gross profit        6,380        18,430        1,799        5,369
Depreciation and amortization        3,887        275        589        89
Share-based payments        1,113        1,189        370        377
Adjusted gross profit        11,380        19,894        2,758        5,835
     

EBITDA is a non-IFRS measure and is defined as income before taxes, excluding depreciation and amortization expenses and amortization of assets recognized in business combination and interest income. We believe that EBITDA, as described above, should be considered in evaluating the Company’s operations. EBITDA facilitates the Company’s performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures, and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively), and EBITDA is useful to an investor in evaluating our operating performance because it is widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to the items mentioned above.

Adjusted EBITDA is a non-IFRS measure and is defined as income before taxes, excluding depreciation and amortization expenses, interest income, finance income for revaluation of assets and liabilities, exchange rate differences and share-based payments. We believe that Adjusted EBITDA, as described above, should also be considered in evaluating the Company’s operations. Like EBITDA, Adjusted EBITDA facilitates the Company’s performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures, and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively), as well as from revaluation of assets and liabilities, exchange rate differences and share-based payment expenses. Adjusted EBITDA is useful to an investor in evaluating our operating performance because it is widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to non-cash items, such as expenses related to revaluation, exchange rate differences and share-based payments.

Adjusted gross profit, excluding depreciation and amortization and share-based compensation expenses, is a non-IFRS measure and is defined as gross profit excluding amortization expenses. We believe that adjusted gross profit, as described above, should also be considered in evaluating the Company’s operations. Adjusted gross profit facilitates gross profit and gross margin comparisons from period to period and company to company by backing out potential differences caused by variations in amortization of inventory and intangible assets. Adjusted gross profit is useful to an investor in evaluating our performance because it enables investors, securities analysts and other interested parties to measure a company’s performance without regard to non-cash items, such as amortization expenses. Adjusted gross margin is calculated by dividing the adjusted gross profit by the revenues.

EBITDA, Adjusted EBITDA, and Adjusted gross profit do not represent cash generated by operating activities in accordance with IFRS and should not be considered alternatives to net income (loss) as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income (loss) as presented in our consolidated statements of profit or loss and other comprehensive income. Other companies may calculate these measures differently than we do.


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