At December 31, 2018, we had cash and equivalents of 115,506 kEUR compared to 43,175 kEUR at December 31, 2017. Cash flow from operating activities for the full year 2018 was 28,321 kEUR compared to 9,951 kEUR in 2017.

Net shareholders’ equity at December 31, 2018 was 135,989 kEUR compared to 77,054 kEUR at December 31, 2017.

Full Year 2018 Results

Total revenues for the year ended December 31, 2018 increased 29.6% to 184,721 kEUR compared to 142,573 kEUR for the year ended December 31, 2017. Excluding the impact of our October 4, 2017 acquisition of ACTech, a full-service manufacturer of complex metal parts, revenues increased 6.6% to 141,329 kEUR. Adjusted EBITDA for the year ended December 31, 2018 was 23,526 kEUR, an increase of 61.0% compared to 14,610 kEUR for the year ended December 31, 2017. The Adjusted EBITDA margin increased to 12.7% from 10.2% last year. Excluding ACTech, Adjusted EBITDA was 14,097 kEUR for the year ended December 31, 2018 compared to 13,067 kEUR for the year ended December 31, 2017.

Revenues from our Materialise Software segment increased 4.5% to 37,374 kEUR for the year ended December 31, 2018 compared to 35,770 kEUR for the year ended December 31, 2017. The segment EBITDA margin was 30.9% in 2018 compared to 38.9% in 2017.

Revenues from our Materialise Medical segment grew by 22.0% for the year ended December 31, 2018 to 52,252 kEUR from 42,841 kEUR for the year ended December 31, 2017. Medical software growth was 9.1%, and revenues from medical devices and services increased 29.3%. The segment EBITDA margin increased to 19.6% from 10.3%, primarily as a result of the combination of revenue growth and limited increases in operating expenses.

Revenues from our Materialise Manufacturing segment increased 49.0% to 94,956 kEUR for the year ended December 31, 2018 from 63,712 kEUR for the year ended December 31, 2017. Excluding ACTech, revenues decreased 4.1% to 51,518 kEUR from 53,747 kEUR. The segment EBITDA margin increased from 7.0% in 2017 to 11.4% in 2018. Excluding ACTech, the segment EBITDA margin decreased to 2.7%.

Net profit improved from (2,117) kEUR for 2017 to a net profit of 3,027 kEUR for 2018.

2019 Guidance

Mr. Leys concluded, “The additive manufacturing market continues to evolve, as new applications gradually find their way to the market, and we intend to continue positioning Materialise to benefit from this promising growth market in the coming years. In 2019, Materialise will dedicate significant attention to the partnerships that we have entered into and to the strategic initiatives that we have launched over the previous years. In our Materialise Software segment, we intend to maintain our leadership position through innovation and strategic partnerships; in our Materialise Medical segment we will drive the next stage of innovation, including by launching initiatives in new growth areas; and in our Materialise Manufacturing segment we will increasingly focus on manufacturing of complex and unique parts.

“For fiscal 2019, we expect to report consolidated revenue between 196,000 kEUR – 204,000 kEUR and Adjusted EBITDA between 29,000 kEUR – 33,000 kEUR. We expect the amount of deferred revenue that Materialise generates from annual licenses and maintenance in 2019 to increase by an amount between 2,000 kEUR – 4,000 kEUR.”

Adjusted EBITDA guidance for 2019 includes the positive impact, estimated at approximately 3,000 kEUR, of the application of the new IFRS16 Leases accounting standard, which requires leases to be recognized as an asset, and depreciated, over the lease term. As a result of the increased depreciation by approximately the same amount as the rental payments, our operating profit will not be impacted by this new standard.

Business Combinations - ACTech

Our audited financial statements for the year ended December 31, 2017 appearing in our Annual Report on Form 20-F, as filed with the U.S. Securities and Exchange Commission on April 30, 2018 (the “FY 2017 Form 20-F”), included a provisional accounting for the ACTech business combination. The fair value analysis with respect to the assets and liabilities acquired was not yet finalized as of the reporting date.

During September 2018, as previously reported in our Third Quarter 2018 Results release, and through October 4 2018, we completed the fair value analysis of the ACTech business combination, with corresponding adjustments to intangible assets, property, plant and equipment, inventories and contracts in progress, other current assets, investment grants and income taxes. The impact has been accounted for as retrospective adjustments to our consolidated statement of financial position as of December 31, 2017 and our consolidated income statement for the year ended December 31, 2017. Including an adjustment to the inventories valuation at ACTech, the total impact on the consolidated reserves for the year ended December 31, 2017 and our 2017 fourth quarter income statements amounted to (461) kEUR.

The adjustments are summarized as follows:

Consolidated statements of financial position
(in € 000)				For the year ended December 31, 2017
				As previously reported				Adjustments				Restated
Goodwill				18,447				(895)				17,552
Intangible assets				28,646				(46)				28,600
Property, plant & equipment				86,881				184				87,065
Inventories and contracts in progress (*)				11,594				(567)				11,027
Other current assets				9,212				(1,537)				7,675
Assets				154,780				(2,861)				151,919
Consolidated reserves				(3,250)				(461)				(3,711)
Deferred tax liabilities (non-current)				7,006				409				7,415
Deferred income (non-current)				5,040				(1,272)				3,768
Tax payable				3,560				(1,537)				2,023
Equity and liabilities				12,356				(2,861)				9,495

Consolidated income statements
(in € 000)				For the year ended December 31, 2017
				As previously reported				Adjustments				Restated
Cost of sales				(62,787)				(447)				(63,234)
Net other operating income (expenses)				5,631				(26)				5,605
Income taxes				(534)				12				(522)
								(461)

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