47% Organic Growth since Q3/2022
33% Higher Revenue over Q2/2022
38% Higher Revenue over H1/2022

44% Q2/23 Gross Margin, Up From 32% in Q2/2022
44% H1/23 Gross Margin, Up From 21% in H1/2022
48% Q2/23 Adjusted Gross Margin, Up From 40% in Q2/2022
47% H1/23 Adjusted Gross Margin, Up From 40% in H1/2022

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

WALTHAM, Mass., Aug. 21, 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 second quarter ended June 30^th, 2023.

Revenue

• $14.74 million for Q2/2023; up 33% over Q2/2022
• $29.70 million for H1/2023; up 38% over H1/2022
  

Gross Margin (“GM”)

• 44% for Q2/2023; up from 32% in Q2/2022
• 44% for H1/2023; up from 21% in H1/2022
  

Adjusted¹ Gross Margin (“Adjusted GM”)

• 48% for Q2/2023; up from 40% in Q2/2022
• 47% for H1/2023; up from 40% in H1/2022
  

Adjusted EBITDA for Q2/2023 was negative $24 million,
including Research & Development expenses: $13 million².

Adjusted EBITDA for H1/2023 was negative $47 million,
including Research & Development expenses: $28 million².

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 compensation expenses.}
² _{Excluding share-based compensation expenses and depreciation.}

CEO MESSAGE TO SHAREHOLDERS:

Dear Shareholders,

Nano Dimension’s momentum continues, and the second quarter and first half of 2023 are no exception. The financial results prove that the people, initiatives, business plan and M&A strategy we have put in place are delivering exceptional revenue and gross margin improvements. Moreover, the 47% organic revenue growth since Q3/2022, across different product lines, is a testament of our unique and synergistic business model.

When many, if not all other businesses, in our space have top-lines that are stagnating or declining, our revenues are growing 33% quarter-over-quarter and 38% half-over-half for 2023. When many of our peers have had to lower prices to compete and/or pay more for an inefficiently managed supply chain, our gross profits are increasing:

• Up 81% from Q2/2022
• Up 185% from H1/2022

We strongly believe that this is only the beginning. We have the right people, technologies, and products for this business to continue to deliver strong results. During the most recent 3-4 quarters, however, I am not focusing on quarterly results, as good as they are – but rather looking at annual trends, aiming for improvements in margins, and potentially, in the not too far future, a positive EBITDA and bottom line. I am confident of this trajectory based on our strong R&D achievements, especially in materials’ developments, pipeline and customer relationships, as well as build-up of sales & marketing infrastructure.

Considerations for Profitability and Cash Flow:

We prudently continue to invest in R&D and Go-to-Market. Those are larger investments than what a company at our present size can typically afford, should it wish to be profitable in near term quarters. However, we are growing steadily – and that’s what we aim to do. Negative cashflows are temporary investments which are meticulously calculated and aimed to match the significant organic growth we expect and the upcoming consolidation waves that we foresee in our industry.

We are prioritizing long-term value creation with a horizon of a few quarters, rather than nearer-term profitability at the expense of the Company’s future potential. If we cut expenses and maximize profit now, an alternative that is definitely doable, we would be sacrificing a substantially increased valuation for the Company down the road. Hence, investors with a different investment-event-horizon, may join us by stretching their timeline slightly, and their expected returns will emerge.

We are not where we are by accident, in particular the cash on our balance sheet was and is preplanned. We are here because we have always respected our fiduciary responsibility to our shareholders, which has led us to spend your capital more prudently than others.

Our disciplined approach to capital allocation has enabled us to enter the next phase of this marketplace - when capital is tight for many - and fully execute on our strategic growth plans. Nano has the cash firepower to continue to build our business and we see significant opportunities ahead, such as the acquisition we announced last week of U.K.-based Additive Flow's technology and intellectual property, which covers solutions for 3D design simulation and optimization.

There will be a few leaders that emerge as dominating the digital manufacturing fields, and we are ideally positioned to act as a consolidator in the highly fragmented market landscape with numerous attractive potential targets. It is hard to imagine who is better positioned than we are.

Nano’s Performance 2020-2023:
Nano’s ambitious and focused M&A strategy, combined with strong organic growth, has already driven significant value creation in recent years:

• $4.4M revenue run rate in 2020 - 2021, up to $60M annual revenue run-rate in H1/2023
• 47% organic growth since Q3/2022
• Adjusted gross margins approaching 50%
• 6 synergistic product lines with hundreds of machines sold across four continents:
  • AME
  • Additive Electronics
  • AM for Metal and Ceramic
  • Micro-Additive Manufacturing
  • Ink Systems
  • Deep Learning AI for Industrial, AM, AME, and other applications
• 6 integrated acquisitions and $1.1 billion of cash, cash equivalents, deposits, and investments
• 5 R&D and manufacturing centers in the Netherlands, Switzerland, Germany, the UK, and Israel
• Sales & marketing and operations in Boston (USA), Germany, the Netherlands, the UK and Australia.

Upcoming Annual General Meeting of Shareholders (“Annual Meeting”):

As many of you are aware, Murchinson Ltd. (“Murchinson”), a small non-institutional fund trying to establish itself as a legitimate “activist,” is threatening to derail the Company’s progress and future value creation opportunity at our upcoming Annual Meeting on September 7^th, 2023. Murchinson’s goal is to remove 9 directors – 7 of whom are independent – all of whom have diverse skills and expertise that are critical to Nano’s future success.

Murchinson has presented NO strategic plan and NO vision for Nano’s future. We believe Murchinson’s campaign is a blatant attempt to elevate the fund’s profile as an “activist” on the account of Nano Dimension and make a quick profit by gaining access to the Company’s significant cash reserves, at the expense of substantial long-term value creation potential for other shareholders.