1. business and industrial
2. company
3. earnings

Fourth Quarter and Full Year 2014 Financial Results
March 27, 2015
Safe Harbor Summary
This presentation contains forward-looking statements about voxeljet AG based
on management’s current expectations which are subject to known and
unknown uncertainties and risks. Our actual results could differ materially from
those discussed due to a number of factors, including the risk factors included
in our annual report on Form 20-F. We are providing this information as of the
date of this presentation and do not undertake any obligation to update any
forward-looking statements contained in this presentation as a result of new
information, future events or otherwise.
© voxeljet AG, Friedberg, Germany
Agenda
Dr. Ingo Ederer
CEO and Founder
 Q4 and Full Year 2014 Highlights
 Our Company Profile - A Refresher
 Growth Strategy
 Financial Overview
Rudolf Franz
COO and CFO
3
 Business Outlook for 2015
 Long-term Outlook
© voxeljet AG, Friedberg, Germany
Q4 2014 Financial Highlights
 Total revenues increased 88% to € 6.9 million in Q4 2014 from € 3.7 million in Q4 2013
 Systems revenues increased 73% to € 4.2 million from € 2.5 million
–
7 printers sold in Q4 2014 compared to 3 printers in Q4 2013
–
Customer interest and quoting activity remains strong
–
Conversion of customer interest to orders remains strong based on our backlog which
was € 4.2 million at December 31, 2014
 Services revenues increased 118% to € 2.7 million from € 1.2 million
4
−
Shipped record box volumes for sand parts and generated strong revenues for sales of
plastic parts
−
Solid volume orders for both on-demand sand and plastics parts highlights the growing
acceptance of 3D printing for production
−
First full quarter’s contribution from subsidiary voxeljet UK, which was acquired on
October 2, 2014
© voxeljet AG, Friedberg, Germany
Full Year 2014 Financial Highlights
 Total revenues increased 38% in FY 2014 to € 16.2 million compared to € 11.7 million in FY
2013
 Systems revenue increased more than 43% to € 9.1 million from € 6.3 million
–
14 systems sold in Full Year 2014 compared to 9 systems in Full Year 2013
 Services revenue increased by 33% to € 7.1 million from € 5.3 million
5
–
The increase was the result of growth at our service center in Germany
–
Contribution from our subsidiary in the UK
© voxeljet AG, Friedberg, Germany
Our Company Profile – A Refresher
Early Vision
Circa 1995
7
Initial Patent Filed in 1997
© voxeljet AG, Friedberg, Germany
History of Growth and Innovation
2003
2005
2011
2013
 First institutional investment
round:
 First large-format 3D printer
using PMMA sold to
Alphaform AG
Introduced the VX1000 and
VX4000
 Successfully completed IPO
 Expansion of European facility
of production space and office
space
 Introduced the VX800
 58 systems installed worldwide
as of December 31, 2013
SKA Fund
 Established service center
 Introduced the VX2000
 Sold 40% ownership share in
certain patents and
technologies to ExOne
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1999
2002
2007
2012
2014
Dr. Ingo Ederer,
Rainer
Höchsmann and
Prof. Dr. Joachim
Heinzl cofounded the
Company
Sold first large-format 3D
printers using sand to
BMW and Daimler
Introduced the VX500
Introduced the VX200 and VXC800
 Production expansion in
Germany of more than 40,000
sq. ft. (320,000 l/months
capacity)
 Voxeljet of America Inc. opens
a service center Detroit,
Michigan (producing ondemand parts in Q1 2015)
 Establishment of subsidiary in
the United Kingdom
8
© voxeljet AG, Friedberg, Germany
Changing Industrial Manufacturing Processes
Added value to industrial casting solutions for manufacturing
Concept
9
printed gating systems
Design
Model
reduced number of cores
Product
© voxeljet AG, Friedberg, Germany
Our Technology: Powder Binding
1
Transfer of
CAD data
2
Application of
particulate
material
3
Selective
addition of
chemical
binding agent
4
Lowering of the
build platform
5
Steps 2-4
repeated
6
Removal of
unbound
material
7
Finished
part
 Capable of largest build volumes
 Cost effective vs. competition
 Highly accurate with outstanding detail
 Attractive material sets for industrial and commercial applications
10
© voxeljet AG, Friedberg, Germany
Our Core Competencies
Cost
effectiveness
Speed
Size
11
© voxeljet AG, Friedberg, Germany
Highly Differentiated 3D Printers
Industry’s largest build box
Industry’s only continuous 3D printer(1)
Robot
Unpacking area
Process station
VX4000
12 (1)
Management believes the VXC800 is the only continuous build 3D printer that is commercially available.
VXC800
© voxeljet AG, Friedberg, Germany
Systems: Our 3D Printer Platforms
We offer a range of build box sizes and print speeds to match our customers’ needs.
Introduction
Build Box Size
(L x W x H)
(millimeters)
Volumetric
Output Rate
(liters per hour)
Price(1)
VX4000
2011
4,000 x 2,000 x 1,000
123
€1,600,000
VX2000
2013
2,000 x 1,000 x 1,000
45
€995,000 - €1,100,000
VX1000
2011
1,060 x 600 x 500
23
€740,000 - €785,000
VXC800
2012
850 x 500 x ∞
18
€600,000
VX500
2007
500 x 400 x 300
3
€350,000 - €370,000
VX200
2012
300 x 200 x 150
0.7
€125,000
System
13 (1)
Prices depend on system configuration and materials and are subject to change.
© voxeljet AG, Friedberg, Germany
Largest 3D Printers in the Industry
(Volume shown in m3)
8.00
2.00
1.26
0.62
0.51
0.40
0.02
VX4000
VX2000
S-Max
iPro 9000 XL
Fortus 900mc
Powder Binding
Powder Binding
Powder Binding
SLA
FDM
14 Source:
Wohlers Report 2013.
Objet 1000
Material Jetting /
Multi-Jetting
A2X
EBM
© voxeljet AG, Friedberg, Germany
VX4000 Large Format 3D Printer
•
4,000 x 2,000 x 1,000 mm
build space
15
•
600 dpi print resolution
•
26,560 drop-on-demand jets
•
15 mm/h build speed
•
Unique machine concept
© voxeljet AG, Friedberg, Germany
VX2000 Printer Comparative Illustration
1 x VX2000
2,000 x 1,000 x 1,000 mm
295 x Makerbot Replicator
285 x 153 x 155 mm
16
© voxeljet AG, Friedberg, Germany
Why Volume is Important
17
•
Large parts – extends additive manufacturing to new applications previously too
large to be printed
•
Flexibility of manufacturing – small numbers of large parts or large numbers of
small parts, or any combination in between
•
Lowers the per part cost
•
Lowers time of manufacture per part
•
Starts to shift additive manufacturing into the area of traditional manufacturing
© voxeljet AG, Friedberg, Germany
Why Volume is Important
Suppose you needed several hundred of these …
2-Stroke Engine
The Build Box of VX1000 3D Printer
Using VX1000
130 parts per layer
780 parts per job box
Print-time: 23 hours
Costs: 2-3 € per piece
Time: 1 min 46 seconds per part
18
© voxeljet AG, Friedberg, Germany
Advantages of using voxeljet Patterns
Why would a foundry want to use voxeljet patterns instead of molded
wax patterns?
•
•
•
•
•
•
No Tooling Cost
No Tooling Lead Time
Speed of Production
Low Pattern Cost
No Molding Presses
No Press Operators
Tool Cost
Tool Lead Time
Pattern Mold Rate
Time to Mold 1,000
Pattern Cost
Time to 1st Casting
Time to Finish
Total Pattern Cost
•
•
•
•
Conventional Caster
$20,000
8-16 weeks
84/day
2 weeks
$5.25
9-17 weeks
11-19 weeks
$25,250
No Wax Inventory
No Down Time for Set-Up
No Tool Storage
Build Assemblies – No Assembly time
voxeljet Caster
$0
780/day
2 days
$13.33
1-2 weeks
3-4 weeks
$13,333
Source: Voxeljet estimates
19
© voxeljet AG, Friedberg, Germany
Manufacturing Costs
Objective is Cost Reduction to Customers
Cost
CostSavings
Savings
Edge Quantity
1
Quantity
20
© voxeljet AG, Augsburg
© voxeljet AG, Friedberg, Germany
Business Model
SYSTEMS
SERVICES
• High speed
• Affordable on-demand access
• Large formats
• Lower cost of entry
• Platforms for various material sets
• Unique build envelopes for large
parts & quantities
• 3 service centers around the world
21
© voxeljet AG, Friedberg, Germany
Integrated Services & Systems Approach
From buying parts… to buying printers and parts.
Customer Adoption Cycle
Step 1
Purchase Parts
From
Service Center
Step 2
Purchase
More Parts
Step 3
Step 4
Operate 3D Printer /
Buy Materials /
Use Service Center
Purchase 3D
Printer
Why Systems Customers Continue
to Use Our Service Center:
22
1
Larger Scale Parts
2
Incremental Production Capacity
3
New Parts / New Materials
© voxeljet AG, Friedberg, Germany
Advantages of On-Demand Services
Illustrated workflow
Direct sales
Dealers
 Order-based production
 Adjusted lead times
Customer design
Obtaining information
Material selection
 Maximum flexibility
 Available immediately, no advance time periods
required
 No tied up capital
 No additional costs other than logistics
Printing
Unpacking and finishing
 No contractual obligations
 Large selection of materials
 Maximum delivery reliability
Quality control
 No space requirements
Packaging and shipping
23
 Large capacity
© voxeljet AG, Friedberg, Germany
Growth Strategies
Growth Strategies
Establish Large
Scale Service
Centers
Continue to Innovate
Expand Sales and
Marketing Presence
25

Expanded European service center in 2014

Added UK service center (through acquisition) in 2014

Opened North American facility in 2015

Evaluating additional global facility opportunities

More than 170 U.S. and international patents and
patent applications

50 active R&D projects

Partner and license complimentary technologies

Added 5 sales agents since IPO, bringing total to
32 worldwide

Appointed Managing Director for North America
and have added 9 employees in the U.S.
© voxeljet AG, Friedberg, Germany
New Headquarters in Germany (near Munich) –
Larger Service Center Facility
 Expanded production space in our facility from 16,000 square
feet to over 40,000 square feet
−
Eliminated capacity constraints
−
Transfer completed in Q2 2014
 Purchased land and buildings for approximately €10 million
on December 6, 2013
−
26
10-year option to purchase property adjacent to
headquarters
© voxeljet AG, Friedberg, Germany
New Headquarters in Germany (near Munich) –
Larger Service Center Facility
27
© voxeljet AG, Friedberg, Germany
New Headquarters in Germany (near Munich) –
Larger Service Center Facility
28
© voxeljet AG, Friedberg, Germany
German Service Center Facility – Sand
29
•
300,000 liters printing capacity / month
•
10 printers
•
Floor space sand division of approximately 38,000 square feet
© voxeljet AG, Augsburg
© voxeljet AG, Friedberg, Germany
German Service Center Facility -- Plastic
30
•
21,000 liters printing capacity / month
•
6 PMMA printers
•
Floor space plastic division of approximately 6,000 square feet
© voxeljet AG, Augsburg
© voxeljet AG, Friedberg, Germany
New Headquarters in Germany (near Munich) –
Larger Production Facility for Systems Assembly
31
© voxeljet AG, Friedberg, Germany
UK Service Center (near London) at Pinewood
Studios – Film & Entertainment, and Other
32
© voxeljet AG, Friedberg, Germany
Introduction of North American Service Center
Canton, Michigan (near Detroit)
 Located in Detroit Metro Area
−
Well-situated to serve the U.S. automotive industry
−
Proximity provides access to customer base in the Midwest U.S. and Canada
 Facility is approximately 50,000 square feet and allows opportunity for future growth
−
Initially expected to operate 4 large format printers
 Operational and producing on-demand parts in Q1 2015
33
© voxeljet AG, Friedberg, Germany
North American Service Center –
Industrial Printed On-Demand Parts Q1 2015
34
© voxeljet AG, Friedberg, Germany
North American Service Center –
Customer Seminar Q1 2015
35
© voxeljet AG, Friedberg, Germany
Culture of Innovation and Development
Material
Components
Machines
App.
36
© voxeljet AG, Friedberg, Germany
voxeljet Phenolic Direct Binding (PDB) – Printing
Process
Application of
powder
Selective addition
of phenolic binder
Curing with IR
lamp & recoating
POST PROCESS
37
•
Curing in the jobbox for 1 h & unpacking / Solid parts might be unpacked right after printing
•
Optional curing in the oven for 30 min at 170 °C
© voxeljet AG, Friedberg, Germany
voxeljet Phenolic Direct Binding (PDB) – Printing
Process
38
© voxeljet AG, Friedberg, Germany
voxeljet Phenolic Direct Binding (PDB) – Printing
Process
39
© voxeljet AG, Friedberg, Germany
Comparison of Phenolic to Furanic Process
Binder
Sand pre-treatment
Sand restrictions
Loss on ignition
Recycling
Phenolic Process
irritant
none
not dependent on pH of sand
adjustable
very easy
almost 100%
Finished Part - PDB
40
Furanic Process
toxic
addition of acid
no alkaline sands
small range
very difficult
0%
Finished Part - Furane
© voxeljet AG, Friedberg, Germany
Phenolic Direct Binding -- Applications
41
© voxeljet AG, Friedberg, Germany
Licensing Agreement with Evonik Industries
42
•
Signed a licensing agreement with Evonik Industries in March 2015 for a 3D
printing process using polymeric materials with distinct speed and cost benefits.
•
A powder bed fusion process which allows for production of parts with
thermoplastic properties.
•
We expect the process will compete with more traditional plastic injection
molding in both speed and part cost regarding ease of processing a wide range
of materials.
•
Expect to bring this process to a marketable product within 3 years and it opens
up new markets and opportunities for us including the ability to deliver final
functional parts.
© voxeljet AG, Friedberg, Germany
Expanding Global Sales Footprint
• Direct sales force and extensive global network of more than 30 sales agents
voxeljet service center
voxeljet direct sales
Sales agents
43
© voxeljet AG, Friedberg, Germany
Financial Overview
Revenue and Gross Profit:
Three Months Ended 12/31/2014
Q4 Gross Profit(1)
Q4 Revenues
(€ in 000’s)
 Revenues for Q4 14 increased 87.8% to compared to Q4
(€ in 000’s)
 Gross profit and margin of €2,988 and 43.1% in Q4 2014
2013
 Both business segments delivered strong growth in the
quarter
(1)
45
Q4 2014 and Q4 2013 include costs of €50 thousand and €340 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
© voxeljet AG, Friedberg, Germany
Segment Financials – Systems:
Three Months Ended 12/31/2014
Q4 Systems Gross Profit(1)
Q4 Systems Revenues
(€ in 000’s)
 Systems revenues increased 72.8 %
 7 printers sold in Q4 2014 compared to 3 printers in Q4
2013
 Systems revenues accounted for 61.2% of total
(€ in 000’s)
 Gross profit and margin of €1,807 and 42.5% in Q4
2014
 Gross margin partially affected by increased headcount
costs related to the pursuit of our growth strategy
revenues in Q4 2014 compared to 66.6% in Q4 2013
(1)
46
Q4 2014 and Q4 2013 include costs of €24 thousand and €188 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
© voxeljet AG, Friedberg, Germany
Segment Financials – Services:
Three Months Ended 12/31/2014
Q4 Services Gross Profit(1)
Q4 Services Revenues
(€ in 000’s)
 Services revenues increased 117.9% in Q4 2014
compared to Q4 2013
 The increase was attributable to increased capacity at
our service center in Germany and a full quarter’s
(€ in 000’s)
 Gross profit and margin increased to €1,181 and
43.9% in Q4 2014
 Gross margin benefited from efficiencies at our
expanded service facility in Germany
contribution from our subsidiary voxeljet UK
(1)
Q4 2014 and Q4 2013 include costs of €26 thousand and €152 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
47
© voxeljet AG, Friedberg, Germany
Financial Highlights Three Months Ended
12/31/2014
 Revenues grew 87.9% Q/Q, resulting from growth in both Systems and Service
 Gross margin of 43.1% well within expectations
Thousands of EUR (except per
share data)
Q4 2014
Q4 2013
% Change
6,938
3,693
87.9%
Cost of sales(1)
(3,950)
(2,168)
82.2%
Gross profit(1)
2,988
1,525
95.9%
Gross Margin %(1)
43.1%
41.3%
1.8%
SG&A(2)
(2,501)
(2,353)
6.3%
Research & Development(3)
(1,316)
(1,283)
2.6%
284
52
Operating income (loss)(1)(2)(3)
(545)
(2,059)
Total comprehensive income
(loss)(1)(2)(3)
(634)
(2,547)
Earnings(loss) per share(1)(2)(3)
(0.17)
(0.85)
3,720,000
3,008,000
Revenues
Other Operating income (expense), net
Weighted avg. shares outstanding
(1)
(2)
(3)
48
Q4 2014 and Q4 2013 include costs of €50 thousand and €340 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
Q4 2014 and Q4 2013 include costs of €16 thousand and €260 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
Q4 2014 and Q4 2013 include costs of €53 thousand and €289 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
© voxeljet AG, Friedberg, Germany
Revenue and Gross Profit:
Full Year 2014
Full Year Gross Profit(1)
Full Year Revenues
(€ in 000’s)
 Revenues in 2014 increased 38.3% compared to 2013
(1)
49
(€ in 000’s)
 Gross profit and margin were €6,325 and 39.1% in 2014
FY 2014 and FY 2013 include costs of €192 thousand and €340 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
© voxeljet AG, Friedberg, Germany
Segment Financials – Systems:
Full Year 2014
Full Year - Systems Revenues
(€ in 000’s)
Full Year - Systems Gross Profit(1)
(€ in 000’s)
 Systems revenues increased 42.8%
 Gross profit and margin of €3,301 and 36.4% in 2014
 14 printers sold in 2014 compared to 9 printers in 2013
 Gross margin partially affected by increased headcount
 System revenues accounted for 56.0% of total
costs related to the pursuit of our growth strategy
revenues in 2014 compared to 54.3% in 2013
(1)
50
FY 2014 and FY 2013 include costs of €104 thousand and €188 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
© voxeljet AG, Friedberg, Germany
Segment Financials – Services:
Full Year 2014
Full Year - Services Revenues
(€ in 000’s)
 Services revenues in 2014 increased 32.9% compared
to 2013
 Record year for shipped box volumes for sand parts
Full Year - Services Gross Profit(1)
(€ in 000’s)
 Gross profit and margin of €3,024 and 42.6% in 2014
 Gross margin benefited from efficiencies at our
expanded service facility in Germany
and revenues for plastic parts
(1)
51
FY 2014 and FY 2013 include costs of €88 thousand and €152 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
© voxeljet AG, Friedberg, Germany
Financial Highlights
Full Year 2014
•
Revenues grew 38.4% in 2014 compared to 2013
•
Solid growth in both business segments
Thousands of EUR (except per
share data)
FY 2014
FY 2013
% Change
Revenues
16,163
11,688
38.3%
Cost of sales(1)
(9,838)
(7,045)
39.6%
Gross profit(1)
6,325
4,643
36.2%
Gross Margin %(1)
39.1%
39.7%
- 60 bps
SG&A(2)
(7,772)
(4,316)
80.1%
Research & Development(3)
(4,027)
(2,651)
51.9%
1,283
311
Operating income (loss)(1)(2)(3)
(4,191)
(2,013)
Total comprehensive income (loss)(1)(2)(3)
(4,333)
(2,714)
Earnings (loss) per share(1)(2)(3)
(1.22)
(1.21)
3,555,616
2,252,000
Other operating income (expense), net
Weighted avg. shares outstanding
(1)
(2)
(3)
52
FY 2014 and FY 2013 include costs of €192 thousand and €340 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
FY 2014 and FY 2013 include costs of €137 thousand and €260 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
FY 2014 and FY 2013 include costs of €174 thousand and €289 thousand, respectively related to the Company’s Long Term Cash Incentive Plan
© voxeljet AG, Friedberg, Germany
Balance Sheet (selected items)
Thousands of EUR (except
share data)
12/31/2014
12/31/2013
Cash and cash equivalents
€ 8,031
€ 33,459
Financial assets
€ 41,142
€ 744
Trade receivables
3,148
1,003
Inventories
5,247
3,641
Property, plant and equipment
19,466
16,316
Total debt and finance lease obligations
€ 3,504
€ 5,785
Equity
€ 71,300
€ 45,400
Weighted average shares outstanding
3,555,616
2,252,000
53
© voxeljet AG, Friedberg, Germany
2015 Guidance
 Full year 2015 revenue estimated to be in a range of between €23.0 million and €24.0
million.
 The primary drivers of the Company’s anticipated revenue growth for the year ending
December 31, 2015 are expected to be:
(1) increased global Systems sales;
(2) continued Services revenue growth at the voxeljet facility in Friedberg, Germany;
(3) contribution from Voxeljet of America Inc., the Company’s Services facility in Canton,
Michigan, which began operating in January 2015, and;
(4) a full year’s contribution from voxeljet UK, the Company’s Services facility outside
London, England.
 Based on these factors, the Company expects Services revenue growth to outpace
Systems revenue growth in 2015.
54
© voxeljet AG, Friedberg, Germany
Long Term Target Operating Model
Revenue Growth: 50%
Gross Margin: 45 – 50%
EBITDA Margin: 25 – 30%
Operating Margin: 10 – 15%
Note: The operating target figures referenced above are targets only; they do not represent budget estimates or projections, and there is no assurance that they can be achieved.
55
© voxeljet AG, Friedberg, Germany
We are voxeljet
56
•
founded in 1999
•
> 200 employees
•
Headquarters in Augsburg, Germany
•
Subsidiaries: Detroit, USA / London, UK
•
Scope of business: Industrial 3D-printing
•
Public company traded on NYSE since October 2013
© voxeljet AG, Friedberg, Germany