OUTSTANDING PROFITABILITY - 2022 FIRST HALF RESULTS: 14 SEPTEMBER 2022
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14 SEPTEMBER 2022 2022 FIRST HALF RESULTS: OUTSTANDING PROFITABILITY
SUMMARY
#01 A rewarding strategy
#02 Systems division: an exceptional semester
#03 Products division: sustained development
#04 Financial results
#05 Outlook & guidance 2022
2
KEY FIGURES H1 2022:
RECORD PROFITABILITY & CASH GENERATION
STRONG REVENUE RECORD CURRENT STRONGEST CASH GENERATION
GROWTH EBITDA in the history of Prodways
€ 41.5 M € 7.9 M € 6.9 M 1
+22% 19% margin +223%
vs H1 2021
+15% +75% Healthy financial position
organic growth vs H1 2021 to pursue growth trajectory
Incl. €0.9 m exceptional
income
1
3
Cash flow from operations before change in working capital
INTRODUCTION A REWARDING STRATEGY
A REWARDING STRATEGY
STRATEGIC AXIS SINCE 2013 POSITION TODAY
Developing high-tech Printers & Materials Highly competitive offer Printers &
for demanding industrial production Materials winning worldwide
Disruptive MovingLight® technology since 2013
combined with certified proprietary materials since 2014
tenders in Europe, USA, APAC
Focusing early on the right markets, ~50% of revenues
especially in Medical from the Medical sector
Building a solid base
of recurring revenues ~65% recurring revenues
5
PURSUING BOTH GROWTH & PROFITABILITY
STRONG REVENUE GROWTH STRONG CURRENT EBITDA GROWTH
+46% average growth between 2014 and 2021 Making Prodways the most profitable 3D
thanks to organic & external growth company among main listed peers1
15 in €m 19% H1 2022 20%
margin in % 12% 15%
€71 m €71 m
10 7% 10%
6% +€9 m
€61 m
€57 m 2% € 7.9
5% M
+€5 m H1 2022
5 +€3 m 0%
€ 41.5 M +€1 m -5%
H1 2022 -3%
€35 m -€2 m -€3 m -€5 m
0 -10%
€25 m
-€1 m -15%
€18 m
-5 -16% -20%
-19%
€5 m -25%
-10 -42% -30%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022
Healthy profitability is bringing competitive hedges in the current economic environment
Gaining clients
Capacity to continue Ramp-up commercial
confidence Pursue external
investments efforts to increase
to secure long-term growth dynamic
in targeted R&D organic growth
industrial projects
1
6
Comparing EBITDA margin in H1 2022 of 22 listed 3D stocks in North America, Europe and Asia, excl. China (PWG, DDD, SSYS, DM, MKFG, SLM, XMTR, VLD, VJET, PRLB, MTLS, SHPW, NNDM, STKH, ONVO, FATH, NORSF, CFMS, FSRD, A3D, TTT, XAR)SYSTEMS DIVISION AN EXCEPTIONAL SEMESTER
PRODWAYS RELIABLE TECHNOLOGIES
IS DELIVERING RESULTS…
10 YEARS OF R&D BRINGING A COMPETITIVE MATERILIAZING
TO DEVELOP HEDGE WITH RELIABLE IN COMMERCIAL
A HIGH-TECH OFFER QUALITY SUCCESSES
HIGH-PRODUCTIVITY
55 models per hour with a MovingLight® LD20
New clients setting-up
HIGH-PRECISION OVER LONG projects for the mass
PRODUCTION TIME production of clear aligners
Producing 1 million parts with the same
precision as the first
MOVINGLIGHT® LD PRINTERS
2nd generation of MovingLight® printers
BEST MATERIALS PERFORMANCE
ON THE MARKET TODAY
>90%
Allowing higher transparency of clear aligners of existing clients are
& vs peers increasing their
ABSOLUTE ALIGNER 3D RESIN DEMANDING MEDICAL CERTIFICATIONS
consumption of materials
Benefiting from 10 years of Allowing clients to sell Prodways parts
development on Prodways Machines worldwide
8MACHINE & MATERIALS:
STRONG QUALITY REWARDED WITH INTERNATIONAL
EXPANSION
Strong expansion beyond France & Germany
Geographic breakdown of Machines & Materials revenues in %
+4 pts
France
North America 12%
North America France 34%
30% 20% Germany
9%
2020 H1 2022
Other 4% Germany Other Rest of Europe
24% 2% 31%
Asia Pacific 6%
Asia Pacific
Rest of Europe 12% +15 pts
16% +6 pts
9SYSTEMS DIVISION:
STRONG STRUCTURAL GROWTH AND EXCEPTIONAL INCOMES
+ 22 %
REVENUES
23 %
EBITDA Margin
Reaching € 26 M + 71 %
in H1 2022 vs H1 2021 in €m
+20% growth Medical sector Materials Increasing contribution with
high-added value
One-off income from debt
+17% growth Diversified industrials sectors +€900 k cancellation in the USA2
+€900 k Anticipated sales from
Software business1
1 Revenues generated in H1 2022 from clients expected to renew their licenses essentially in H2 2022 initially 10
2 In the context of public support during the health crisisPRODUCTS DIVISION SUSTAINED DEVELOPMENT
DIGITAL MANUFACTURING (PRINTING ON DEMAND):
STRONGER DEMAND
+150 new
GAINING NEW CLIENTS accounts
since January
13% larger
+ 46 %
REVENUES
INCREASING SIZE OF ORDERS on average in H1 2022
60 projects
SUCCESS OF 3D MOLDING so far in 2022
x3 vs volume last year GEOGRAPHIC DIVERSIFICATION
STRONG ACTIVITY TROUGH GERMANY
+85% in 2022 28%
DIGITAL PLATFORM “PRODLINE” FRANCE
55%
SUCCESSFUL INTEGRATION X2 synergies OTHER
OF CREABIS vs initial expectations 17%
123D MOLDING, AN INNOVATIVE TECHNIQUE
Saving
PRINTING THE
MOLD IN 3D 20 %
time and
60
projects
& INJECTING significant in 2022
THE PARTS INTO costs with hundreds
compared of parts
THE RIGHT to traditional injected in
MATERIAL tools each mold
13DIGITAL MANUFACTURING:
A POWERFUL & ATTRACTIVE INDUSTRIAL TOOL
CRITICAL SIZE A VECTOR OF DIGITALIZATION
& ATTRACTIVE OFFER & MORE RESPONSIBLE PRODUCTION
SAVING MATERIALS
compared to traditional milling
& CNC machining techniques
RESPONSIBLE PRODUCTION SITES
Reusing the heat of the printers
Using green electricity
A fleet More than
of ~50 printers 10 different technologies DEEPENING DIGITALIZATION
in France & 30 different materials Integrating AM-Flow technologies to increase
productivity (automation of 3D production flows)
& Germany available
>3 MILLION PARTS PRINTED PER YEAR & CAPACITY TO ABSORB HIGHER VOLUMES
WITH THE EXISTING STRUCTURE
14STRENGTHENING IN AUDIOLOGY
WITH AUDITECH INNOVATIONS
A STRONG DEVELOPMENT POTENTIAL
1 in 2 employees in France is hindered by noise
in the workplace1
DYNAMISM OF PRODWAYS EXISTING
HEARING PROTECTION BUSINESS
>30% revenue growth in H1 2022
Custom hearing protections
OPERATIONAL SYNERGIES
300,000 users today in all types of industries TO IMPLEMENT
Prodways direct commercial force
A 50 people expert team in Rouen, France & Auditech distributors network
Combining industrial production tools
~€3 m revenues in 2021
Pulling support functions resources
1 IFOP survey, September 2021 15PRODUCTS DIVISION:
SIGNIFICANT INCREASE IN RESULTS
+ 21 %
REVENUES
15 %
EBITDA Margin
Reaching € 15 M + 64 %
in H1 2022 vs H1 2021
Digital +47% growth
incl. +8% organic Improving gross margin
Manufacturing
Integrated Stable revenues
despite unfavorable base effect1 Operating leverage
Medical businesses
1 Significant catch-up effect in H1 2021 when medical practices re-opened 16H1 2022 FINANCIAL RESULTS
P&L STATEMENT H1 2022
H1 2021 H1 2022 Variation Variation
(€M) (€M) (€M) (%) GROSS MARGIN MAINTAINED
ABOVE 50%
Revenue 34,1 41,5 +7,4 +22% thanks to good operational execution
and control on supply chain
Current EBITDA1 4,5 7,9 +3,4 +75%
Current EBITDA margin 13,2% 19,0% - +6 pts
OPERATING LEVERAGE
Income from oridnary effect with decreasing indirect costs
2,2 5,4 +3,2 +146% relatively to revenues
activites2
Operating income 0,9 5,1 +4,2 +495%
Incl. DEBT WAIVER in the US for +€0.9 m
Financial results, -1,2 -1,6 -0,4 n.a in H1 2022
tax & minorities
NET INCOME
-0,3 3,5 +3,8 n.a POSITIVE NET INCOME for €3.5 m
IN GROUP SHARE
1 Operating income before “depreciation, amortization and provisions”, “non-recurring items in operating income” and “Group share of the earnings of affiliated companies”.
2 Operating income before “non-recurring items in operating income” and “Group share of the earnings of affiliated companies”. 18THE STRONGEST CASH GENERATION THE HISTORY
OF PRODWAYS
Cash flow from operations since 20141
+€4,6 m
+€5,9 m
+€ 6.9
in
H1 2021
M
+ 223 %
vs H1 2021
+€0,8 m already
-€0,1 m
-€1,6 m
-€0,2 m
16 %
higher than
-€3,9 m
FY2021
-€5,8 m
2014 2015 2016 2017 2018 2019 2020 2021 2022
1 Cash flow from operating activities after neutralization of the cost of net financial debt and taxes and before change in working capital 19A DISCIPLINED FINANCIAL POLICY SUPPORTING
A HEALTHY BALANCE SHEET
x x x
Available cash Temporary increase in €1.8 M targeted
of €19 M leading working capital of +€3.4 M, capex investments,
to net cash position1 expected to decrease essentially in R&D
of €1.8 M in the short-term
Due to increase in inventories out of Besides R&D, significant capex
caution and change in seasonality due investments are not needed
to anticipated orders in H1 2021 in the short-term
Working capital should come back
to normative level of 3% to 4%
of annual revenues by year-end
2 Before IFRS16 lease debt and including treasury shares 20OUTLOOK & GUIDANCE
SYSTEMS:
RAMPING-UP ON EXISTING DRIVERS & EXPLOITING NEW ONES
APPLICATIONS KEY DRIVERS KEY STRENGTHS OF PRODWAYS
• The largest application of 3D Printing worldwide • High-quality technologies recognized
CLEAR ALIGNERS by key accounts
Production of dental • Existing players are ramping-up production
models for thermoforming • A reference 3D player worldwide
aligners • New players are setting up multi-machines
factories • Proven capacity to secure large projects
• 3D enables safer, faster & more comfortable
procedures • More reliable technologies vs “desktop
• Cost of scanning solutions are decreasing printers”
DIGITAL DENTISTRY
Models for crowns, bridges • A great majority of dentists are equipped • Strong knowledge of the industry
and surgical guides with digital solutions • Strong position to provide large dental
• Dental labs are consolidating into larger labs with printers large volumes
entities
PERSONALIZED • Bringing 3D Printing strengths to • Capacity to reiterate the success
other fields of Medicine to improve in orthodontics to other fields
MEDICINE patients care
Prothesis, orthosis, anatomical • Development know-how in materials for
• Cost of digital equipment are decreasing medical use
models, pre-surgery planning,
implants, instruments • Digital solutions are becoming part of • Expertise in medical certifications
medical schools education
22PRODUCTS:
LEVERAGING THE EXISTING PRODUCTION TOOLS
& CONTINUING DEVELOPMENT
1 2
RAMPING-UP ORGANIC GROWTH CONTINUE EXTERNAL GROWTH
Increasing
Capacity Operating Strong track Strong balance Expertise in digitalization
commercial
to produce leverage record with sheet to of medical &
efforts to build
more with to improve successful finance industrial activities,
on the current
existing tools profitability integrations investments a vector of value creation
trends
23GUIDANCE 2022
REVENUE PROFITABILITY
Around
+ 15 % 15 %
growth
revised upwards vs c. +10%
to 20 %
following a good start of the year current EBITDA margin
Incl. recent acquisition for the full year 2022
of Auditech Innovation
24Contact Hugo Soussan h.soussan@prodways.com +33 1 44 77 94 86 +33 7 55 66 40 54
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