The changes in foreign currency gains and losses were primarily driven by the valuation of the intercompany loans granted by the parent company to our U.S. subsidiary.

Operating loss was kEUR 8,576 in the nine months ended September 30, 2023 compared to an operating loss of kEUR 5,615 in the comparative period in 2022. This was mainly due to a lower positive net impact from other operating expenses and other operating income amounting to kEUR 1,419 for the nine months ended September 30, 2023 compared to a positive net impact amounting to kEUR 4,112 for last year’s same period in combination with higher selling and administrative expenses. This was partially offset by a slight improvement of gross profit and slightly lower research and development expenses.

Financial result was negative kEUR 1,479 for the nine months ended September 30, 2023, compared to a financial result of negative kEUR 5,723 for the comparative period in 2022. The primary components of the financial result are described below.

In October 2022, the EIB Loan including all interest was early settled and consequently the loan as well as the related derivative financial instruments were derecognized, therefore there is no finance income/expense from EIB Loan/derivatives for the nine months ended September 30, 2023. The derecognition in October 2022 resulted in the write-down of the bifurcated embedded derivative financial instruments relating to the performance participation interest for tranche A of the EIB Loan, which resulted in finance expense amounting to kEUR 2,827 for the nine months ended September 30, 2022. This was partially offset by the write-down of the bifurcated embedded derivative financial liability for the performance participation interest for tranche B1 of the EIB Loan, which resulted in finance income of kEUR 516 for the nine months ended September 30, 2022.

Additionally, in the course of the early settlement of the EIB Loan, we recognized a finance expense of kEUR 907 in the third quarter of 2022 related to the revision of estimated future cash flows from tranches A and B1 of the EIB loan that led to an adjustment of the carrying amounts of the two tranches.

Finance expense related to long term debt amounted to kEUR 395 for the nine months ended September 2023, compared to kEUR 2,625 for the nine months ended September 30, 2022, including the kEUR 907 adjustment of the carrying amounts of tranches A and B1 of the EIB Loan as described above.

The decrease in the above-mentioned interest and fair value expenses was partially offset by increased interest expense on lease liabilities amounting to kEUR 866 for the nine months ended September 30, 2023, compared to kEUR 103 for the comparative period in 2022, mainly related to the sale and leaseback transaction regarding voxeljet AG’s properties located in Friedberg, Bavaria, Germany. The transaction closed on October 31, 2022 and the lease term commenced on November 1, 2022.

In addition, finance expense related to the change in fair value of bond funds decreased from kEUR 773 for the nine months ended September 30, 2022 to kEUR 0 for the nine months ended September 30, 2023.

Financial result also included finance expense from revaluation of derivative financial instruments related to the Anzu Note amounting to kEUR 325 for the nine months ended September 30, 2023, compared to kEUR 0 for the comparative period. For further information, see Note 7.

Net loss for the nine months ended September 30, 2023 was kEUR 10,067, or EUR 1.09 per share, as compared to net loss of kEUR 11,254, or EUR 1.59 per share for the prior year period.

Business Outlook

Our revenue guidance for the fourth quarter of 2023 is expected to be in the range of kEUR 10,000 to kEUR 13,500.

We refine in part and reaffirm in part our guidance for the full year ending December 31, 2023:

- Full year revenue is expected to be in the range of kEUR 29,000 to kEUR 32,500 (range is refined to the upper end of our earlier guidance)

- Gross profit margin remains expected to be above 31.5%

- Operating expenses for the full year are expected as follows: selling and administrative expenses remain expected to be in the range of kEUR 14,000 to kEUR 16,000 and R&D expenses are projected to be between approximately kEUR 6,750 and kEUR 7,000 (slightly lowered from our earlier guidance). Depreciation and amortization expense remains expected to be between kEUR 3,000 and kEUR 3,250.

- Adjusted EBITDA for the fourth quarter of 2023 remains expected to be slightly negative to neutral. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles before interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other operating (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries.

- Capital expenditures are projected to be in the range of kEUR 1,500 to kEUR 1,750 (lowered from our earlier guidance), which primarily includes ongoing investments in our global subsidiaries.

Our total backlog of 3D printer orders as of September 30, 2023 was kEUR 11,737, which represents fifteen 3D printers. This compares to a backlog of kEUR 9,975 representing eleven 3D printers, December 31, 2022. As production and delivery of our printers are generally characterized by lead times ranging between three to nine months, the conversion rate of order backlog into revenue is dependent on the equipping process for the respective 3D printer, as well as the timing of customers’ requested deliveries.

As of September 30, 2023, we had cash and cash equivalents of kEUR 4,968, and additionally held kEUR 2,988 of restricted cash and kEUR 1,891 of term deposits, which are included in current other financial assets on our consolidated statements of financial position.

Webcast and Conference Call Details

The Company will host a conference call and webcast to review the results for the third quarter of 2023 on Friday, November 17, 2023 at 8:30 a.m. Eastern Time. Participants from voxeljet will include its Chief Executive Officer, Dr. Ingo Ederer, and its Chief Financial Officer, Rudolf Franz, who will provide a general business update and respond to investor questions.

Interested parties may access the live audio broadcast by dialing 1-877-704-4453 in the United States/Canada, or 1-201-389-0920 for international, Conference Title “voxeljet AG Third Quarter 2023 Financial Results Conference Call”. Investors are requested to access the call at least five minutes before the scheduled start time in order to complete a brief registration. An audio replay will be available approximately two hours after the completion of the call at 1-844-512-2921 or 1-412-317-6671, Replay Conference ID number 13742023. The recording will be available for replay through November 24, 2023.

A live webcast of the call will also be available on the investor relations section of the Company’s website. Please go to the website https://events.q4inc.com/attendee/670347144 at least fifteen minutes prior to the start of the call to register, download and install any necessary audio software. A replay will also be available as a webcast on the investor relations section of the Company’s website.

Non-IFRS Measure

Management regularly uses both IFRS and non-IFRS results and expectations internally to assess its overall performance of the business, making operating decisions, and forecasting and planning for future periods. Management believes that Adjusted EBITDA is a useful financial measure to the Company’s investors as it helps investors better understand and evaluate the projections our management board provides. The Company’s calculation of Adjusted EBITDA may not be comparable to similarly titled financial measures reported by other peer companies. Adjusted EBITDA should not be considered as a substitute to financial measures prepared in accordance with IFRS.

The Company uses Adjusted EBITDA as a supplemental financial measure of its financial performance. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles, interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries. Management believes Adjusted EBITDA to be an important financial measure because it excludes the effects of fluctuating foreign exchange gains or losses on the intercompany loans granted to its subsidiaries. We are unable to reasonably estimate the potential full-year financial impact of foreign currency translation because of volatility in foreign exchange rates. Therefore, we are unable to provide a reconciliation to our forward-looking guidance for non-GAAP Adjusted EBITDA without unreasonable effort as certain information necessary to calculate such measure on an IFRS basis is unavailable, dependent on future events outside of our control and cannot be predicted without unreasonable efforts by the Company.