Table of Contents
As filed with the Securities and Exchange Commission on March 30, 2021
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 20-F
(Mark One)
☐
☒
☐
☐
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
For the fiscal year ended December 31, 2020
OR
Commission file number 001-36130
voxeljet AG
(Exact name of Registrant as specified in its charter)
Not Applicable
(Translation of Registrant’s name into English)
Federal Republic of Germany
(Jurisdiction of incorporation or organization)
Paul-Lenz Straße 1a
86316 Friedberg, Germany
(Address of principal executive offices)
Rudolf Franz, Telephone: (49) 821 7483 100, Facsimile: (49) 821 7483 111,
Address: Paul-Lenz Straße 1a, 86316 Friedberg, Germany
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of each class
American Depositary Shares each representing one ordinary share
Ordinary shares, €1.00 nominal value per share*
Trading symbol
VJET
Name of each exchange on which registered
NASDAQ Capital Market
NASDAQ Capital Market*
*
Not for trading purposes, but only in connection with the registration of American Depositary Shares pursuant to the requirements of the Securities and Exchange Commission.
Securities registered or to be registered pursuant to Section 12(g) of the Act.
Securities registered for which there is a reporting obligation pursuant to Section 15(d) of the Act.
None
(Title of Class)
None
(Title of Class)
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.
Ordinary shares: 4,836,000
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ Yes ☒ No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934. ☐ Yes ☒ No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during
the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “accelerated filer,” “large
accelerated filer” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer ☐
Accelerated filer ☐
Non-accelerated filer ☒
Emerging growth company ☐
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ◻
†The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b)
of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐ Yes ☒ No
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP ☐
International Financial Reporting Standards as issued
by the International Accounting Standards Board ☒
Other ☐
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. ☐ Item 17 ☐ Item 18
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court. ☐ Yes ☐ No
Table of Contents
PART I
ITEM 1.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 4A.
ITEM 5.
ITEM 6.
ITEM 7.
ITEM 8.
ITEM 9.
ITEM 10.
ITEM 11.
ITEM 12.
PART II
ITEM 13.
ITEM 14.
ITEM 15.
ITEM 16.
ITEM 16A.
ITEM 16B.
ITEM 16C.
ITEM 16D.
ITEM 16E.
ITEM 16F.
ITEM 16G.
ITEM 16H.
PART III
ITEM 17.
ITEM 18.
ITEM 19.
TABLE OF CONTENTS
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
OFFER STATISTICS AND EXPECTED TIMETABLE
KEY INFORMATION
INFORMATION ON THE COMPANY
UNRESOLVED STAFF COMMENTS
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
FINANCIAL INFORMATION
THE OFFER AND LISTING
ADDITIONAL INFORMATION
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
CONTROLS AND PROCEDURES
RESERVED
AUDIT COMMITTEE FINANCIAL EXPERT
CODE OF ETHICS
PRINCIPAL ACCOUNTANT FEES AND SERVICES
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
CORPORATE GOVERNANCE
MINE SAFETY DISCLOSURE
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
EXHIBITS
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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This annual report on Form 20-F contains forward-looking statements concerning our business, operations and financial
performance and condition as well as our plans, objectives and expectations for our business operations and financial
performance and condition. Any statements that are not of historical facts may be deemed to be forward-looking statements. You
can identify these forward-looking statements by words such as “believes,” “estimates,” “anticipates,” “expects,” “plans,”
“intends,” “may,” “could,” “might,” “will,” “should,” “aims,” or other similar expressions that convey uncertainty of future
events or outcomes. Forward-looking statements appear in a number of places throughout this annual report and include
statements regarding our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations concerning,
among other things, our indebtedness and ability to continue as a going concern, results of operations, cash needs, financial
condition, liquidity, prospects, growth and strategies, intellectual property position, the industry in which we operate and the
trends that may affect the industry or us.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive
dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on
longer or shorter timelines than anticipated. Although we believe that we have a reasonable basis for each forward-looking
statement contained in this annual report, we caution you that forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All
of our forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from
our expectations.
Actual results could differ materially from our forward-looking statements due to a number of factors, including,
without limitation, risks related to:
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health epidemics and other widespread outbreaks of contagious disease, such as COVID-19, which could
significantly disrupt our operations and impact our operating results and/or cash flows;
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our ability to maintain our operations as a going concern;
● matters arising from the results of our Audit Committee investigation regarding potential illegal acts, including any
identified material weaknesses, recommended remediations, potential regulatory investigations and proceedings,
litigation matters, and additional expenses;
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our ability to maintain sufficient internal controls over financial reporting to comply with Section 404 of the
Sarbanes-Oxley Act, as applicable, and to mitigate and remediate effectively the material weaknesses in our
internal control over financial reporting;
our ability to raise additional capital on attractive terms, or at all, to meet our growth strategy as well as to support
the continuation of our operation;
fluctuations in our revenues and operating results;
our ability to achieve the intended benefits from and the related restructuring costs of the strategic restructuring of
our workforce in the United Kingdom (or “UK”) and Germany;
our ability to manage the expansion of our operations, including sales efforts, effectively, including in difficult
market environments like India and China, in order to achieve our projected levels of growth;
our ability to attract and retain key management or other key employees;
rapid changes in government, economic and political policies and conditions, political or civil unrest or instability,
terrorism, epidemics or pandemics;
our ability to introduce new 3D printers and related print materials acceptable to the market and to improve the
technology and print materials used in our current 3D printers;
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the long sales cycle for our products, which makes the timing of our production planning and our revenues difficult
to predict;
our ability to adequately increase demand for our products;
declines in the prices of our products and services, or in our volume of sales;
our dependence upon sales to certain industries;
our relationships with suppliers, especially with limited source suppliers of components of and consumables for our
products;
significant fluctuations in the price of our American Depositary Shares (“ADSs”);
our ability to maintain our exemption, as a foreign private issuer, from certain requirements under United States (or
“U.S.”). securities laws and NASDAQ Capital Market (the “NASDAQ”) corporate governance rules;
our ability to obtain patent protection for our products or otherwise protect our intellectual property rights;
our ability to protect our trade secrets and intellectual property; and
the other factors listed in “Item 3. Key Information—D. Risk Factors” and elsewhere in this annual report.
Any forward-looking statements that we make in this annual report speak only as of the date of such statement, and we
undertake no obligation to update such statements to reflect events or circumstances after the date of this annual report or to
reflect the occurrence of unanticipated events. Comparisons of results for current and any prior periods are not intended to
express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical
data. You should, however, review the factors and risks we describe in the reports we will file from time to time with the
Securities and Exchange Commission, or SEC after the date of this annual report. See “Item 10. Additional Information—H.
Documents on Display.”
You should also read carefully the factors described in “Item 3. Key Information—D. Risk Factors” section of this
annual report and elsewhere to better understand the risks and uncertainties inherent in our business and underlying any forward-
looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this annual report
will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material.
In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a
representation or warranty by us or any other person that we will achieve our objectives and plans in any specified timeframe, or
at all.
In this annual report, unless the context otherwise requires, the “Company,” “voxeljet,” “we,” “us,” and “our” refer to
voxeljet AG and its subsidiaries.
SUMMARY OF RISK FACTORS
Investing in our securities involves a high degree of risk. The following is a summary of the principal factors that make
an investment in our securities speculative or risky, all of which are more fully described below in “Item 3. Key Information—D.
Risk Factors” section of this annual report. This summary should be read in conjunction with the “Item 3. Key Information—D.
Risk Factors” section and should not be relied upon as an exhaustive summary of the material risks facing our business.
Risks Related to Our Business and Industry
● We face risks related to health epidemics such as COVID-19;
● We have incurred losses to date and anticipate continuing to incur losses in the future;
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● Matters relating to or arising from our Audit Committee investigation may adversely affect our business and results of
operations;
● Material weaknesses in our internal control over financial reporting have been identified;
● Our indebtedness could adversely affect our financial condition;
● We need to raise additional capital from time to time and may be unable to do so on attractive terms, or at all;
● Our revenues, operating results, margins and EBIT may fluctuate from quarter-to-quarter and year-to-year;
● Our strategic restructurings may not achieve intended benefits;
● Our operations could suffer if we are unable to attract and retain key management or skilled employees;
● We face significant competition in many aspects of our business;
● Our operations outside of Germany and related risks could adversely affect our results of operations;
● We may engage in future acquisitions that could disrupt our business;
● Global economic, political and social conditions have adversely impacted our sales and may continue to do so;
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Failure to comply with the U.S. Foreign Corrupt Practices Act could result in fines and criminal penalties;
● Our operations are subject to government regulations which could result in liabilities;
● We may not have adequate insurance, including for liabilities arising from litigation.
Risks Related to Our Products
● We may not be able to introduce new 3D printers and related print materials to meet customer demands;
● Declines in the prices of our products and services, or in our sales may adversely affect our financial results;
● Demand for our products may not increase adequately;
● Defects in new products could result in material expenses, diversion of management time and attention, and damage to
our reputation;
● Disruption of our manufacturing facility could result in loss of revenues and unforeseen costs.
Risks Related to Information Technology and Information Security
● A disruption of our information technology systems could adversely affect our results of operations;
● Regulation in the areas of privacy, data protection and information security could increase our costs.
Risks Related to Our Dependence on Third Parties
● We are highly dependent upon sales to certain industries;
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If our relationships with suppliers were to terminate or be disrupted, our business could be adversely affected.
Risks Related to Ownership of Our ADSs
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The price of our ADSs may fluctuate significantly;
Substantial future sales of our ordinary shares or ADSs could cause the price of the ADSs to decline;
● Our principal shareholders and management will be able to exert significant influence over matters subject to
shareholder approval;
● Holders of our ADSs may not have the same rights as the holders of our ordinary shares;
● We have no present intention to pay dividends on our ordinary shares in the foreseeable future;
● As a foreign private issuer, we are exempt from a number of rules under the U.S. securities laws and NASDAQ
corporate governance rules;
● We incur significant costs to operate as a company whose ADSs are publicly traded in the United States;
● U.S. investors may have difficulty enforcing civil liabilities against our Company;
● Your rights as a shareholder in a German corporation may differ from those in a U.S. corporation;
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Exchange rate fluctuations may reduce the amount of U.S. dollars you receive in respect of any dividends;
In the event we are or become treated as a passive foreign investment company, U.S. holders of our ADSs could be
subject to adverse U.S. federal income tax consequences.
Risks Related to Our Intellectual Property
●
If we are unable to obtain patent protection for our products, our business could suffer;
● We have license rights of certain patents and cannot adequately estimate the effects of their expiration;
● We may be subject to claims alleging patent infringement and may incur substantial costs;
● Obtaining and maintaining our patent protection depends on compliance with various requirements;
● Certain of our employees and patents are subject to German law;
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If we fail to comply with our obligations under our intellectual property-related agreements, we could lose rights that are
important to our business;
● Certain technologies and patents have been developed with partners and we may face restrictions thereon.
SERVICE OF PROCESS AND ENFORCEMENT OF CIVIL LIABILITIES
voxeljet AG is a German stock corporation (Aktiengesellschaft or AG), and its registered offices and most of its assets are located
outside of the United States. In addition, most of the members of our Management Board, our Supervisory Board, and our senior
management are residents of Germany and jurisdictions other than the United States. As a result, it may not be possible for you to
effect service of process within the United States upon these individuals or upon voxeljet AG or to enforce judgments obtained in
U.S. courts based on the civil liability provisions of the U.S. securities laws against voxeljet AG in the United States. Awards of
punitive damages in actions brought in the United States or elsewhere are generally not enforceable in Germany. In addition,
actions brought in a German court against voxeljet AG or the members of its Management Board and Supervisory Board, and its
senior management to enforce liabilities based on U.S. federal securities laws may be subject to certain restrictions; in particular,
German courts generally do not award punitive damages. Litigation in Germany is also subject to rules of procedure that differ
from the U.S. rules, including with respect to the taking and admissibility of evidence, the conduct of the proceedings and the
allocation of costs.
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Proceedings in Germany would have to be conducted in the German language, and all documents submitted to the court would, in
principle, have to be translated into German. For these reasons, it may be difficult for a U.S. investor to bring an original action in
a German court predicated upon the civil liability provisions of the U.S. federal securities laws against us, the members of our
Management Board, Supervisory Board and senior management. In addition, even if a judgment against our Company, the non-
U.S. members of our Management Board, Supervisory Board or senior management based on the civil liability provisions of the
U.S. federal securities laws is obtained, a U.S. investor may not be able to enforce it in U.S. or German courts.
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PART I
ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
ITEM 3. KEY INFORMATION
A. SELECTED FINANCIAL DATA
Not applicable.
B. CAPITALIZATION AND INDEBTEDNESS
Not applicable.
C. REASONS FOR THE OFFER AND USE OF PROCEEDS
Not applicable.
Risks Related to Our Business and Industry
D. RISK FACTORS
We face risks related to health epidemics and other widespread outbreaks of contagious disease, such as COVID-19, which
could significantly disrupt our operations and impact our operating results and/or cash flows.
We face various risks related to health epidemics, pandemics and similar outbreaks, including the global outbreak of
COVID-19. The continued spread of COVID-19 has led to disruption and volatility in the global economy and capital markets,
which increases the cost of capital and adversely impacts access to capital.
The continued spread of COVID-19 has and may continue to disrupt our supply chain. While we have been able to
mitigate any significant disruption, any significant delay, or limit in the ability of customers to perform fully on contract
obligations, the COVID-19 pandemic could impact investment performance and cause other unpredictable events. We have been
impacted and continue to be impacted by adverse effects from the COVID-19 pandemic, including the decline in revenues for the
Services segment and service and maintenance business of the Systems segment. Also, we have experienced and continue to
expect some delays in installation of 3D printers at customers’ facilities, which has and may lead to further postponed revenue
recognition for those transactions. Furthermore, if significant portions of our workforce are unable to work effectively, including
because of illness, quarantines, government actions, facility closures, remote working or other restrictions in connection with the
COVID-19 pandemic, our operations will likely be negatively impacted. Pursuant to government closure orders, including
reimpositions of travel restrictions and other closures, intended to contain or slow the spread and resurgence of COVID-19, we
may be required to close certain of our facilities in the regions voxeljet operates that perform work that is deemed non-
essential. One or more additional facilities could become subject to similar orders, which could further disrupt our operations if
the work performed at such facilities cannot be conducted remotely, potentially necessitating the furloughing of some of our
employees or a permanent reduction in our workforce.
Our sales, installation and service of 3D printing machines in China and other countries have been and may continue to
be disrupted, and the spread of COVID-19 has disrupted our commercial efforts in other countries. If the COVID-19 crisis
continues for a prolonged duration, we or our customers may be unable to perform fully on our contracts , which will likely result
in increases in costs and reduction in revenue. These cost increases may not be fully recoverable or adequately covered by
insurance. If we experience difficulty in generating sufficient cash flow to meet
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our obligations and sustain our operations, which could affect our ability to continue as a going concern, we may have difficulty
accessing government and state aid.
We continue to work with our stakeholders (including customers, employees, suppliers and local communities) to
address responsibly this global pandemic. The long-term effects of COVID-19 to the global economy and to us are difficult to
assess or predict, and may include a further decline in the market prices of our ADSs, risks to employee health and safety, risks
for the deployment of our products and services (including by limiting our customer support, among others effects resulting from
government measures) and reduced sales in geographic locations impacted. The prolonged restrictive measures put in place in
order to control COVID-19 or other adverse public health development in any of our targeted markets have had and may have a
material and adverse effect on our business operations, financial position, results of operations and/or cash flows. These
uncertainties could affect our ability to continue as a going concern.
We have incurred losses to date and anticipate continuing to incur losses in the future, and there are uncertainties which
could affect our ability to continue as a going concern.
Our consolidated financial statements as of and for the year ended December 31, 2020 have been prepared on the basis
that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal
course of business. We have incurred significant losses since our IPO and we expect that we will continue to incur losses as we
aim to successfully execute our business plan and will be dependent on additional public or private financings, collaborations or
licensing arrangements with strategic partners, or additional credit lines or other debt financing sources to fund continuing
operations.
We expect that we will continue to incur losses and negative cash flows from operations for at least the next 12 months
following the issuance of the financial statements. As of December 31, 2020, we had an accumulated deficit of € 75.6 million and
had cash and cash equivalents and short-term financial assets of total € 8.3 million. We have significant outstanding debt and
contractual obligations related to interest payments and leases. As of December 31, 2020, our debt totaled € 23.2 million, of
which € 18.7 million is classified as current. Our debt service obligations over the next twelve months are significant, including
more than € 0.5 million of anticipated interest payments. Furthermore, our debt agreement with the European Investment Bank
(the “EIB”) contains financial covenants, the breach of which could trigger the acceleration of our loan repayment obligations,
which would put us at risk of default.
In addition, as of December 31, 2019, we were in non-compliance with the financial covenants related to loan
agreements with Kreissparkasse Augsburg, Germany and consequently pledged € 2.0 million in favor of Kreissparkasse. The
circumstance that those € 2.0 million have been pledged and therefore are restricted since then, has been considered within
management’s assessment of going concern.
Further, as of December 31, 2019, we were in breach of the Total Net Financial Debt to EBITDA financial covenant
under the Finance Contract with the EIB (the “Finance Contract”), which requires that we maintain certain minimum ratios. In
March 2020, we received a waiver for the covenant breaches in 2019 and a grace period ending March 31, 2021, during which (i)
voxeljet can rectify such breaches and (ii) the EIB shall not demand immediate repayment. In return, in March 2020 we
registered a first rank land charge amounting to € 10.0 million on our land and facility located in Friedberg (Germany) Paul-
Lenz-Straße, 1a as collateral in favor of the EIB. In June 2020, we announced that the EIB and voxeljet AG further expanded our
partnership. The EIB disbursed € 5.0 million of the second tranche (tranche B1) of the loan in June 2020 with a bullet repayment
after five years. In addition, we amended the financial covenants in the Finance Contract to replace the Total Net Financial Debt
to EBITDA ratio with a Minimum Cash/Cash Equivalents requirement (the “Minimum Cash Covenant”). As of June 30, 2020,
pursuant to the semi-annual financial testing prescribed by the Finance Contract, as amended, we were in compliance with the
Minimum Cash Covenant. However, in March 2021, we discovered that our calculation of cash and cash equivalents for
determining compliance with the Minimum Cash Covenant was incorrect and, accordingly, we were not in compliance with the
Minimum Cash Covenant as of December 31, 2020. Also in March 2021, we received a waiver from the EIB for the
noncompliance with the Minimum Cash Covenant, pursuant to which (i) the EIB agreed that it will not demand immediate
repayment of the outstanding amounts owed and (ii) the EIB and the Company amended the financial covenants in the Finance
Contract to clarify the calculation of cash and cash equivalents for determining compliance with the Minimum Cash Covenant.
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We expect to incur additional costs and expenses related to the continued development and expansion of our business,
including the maintenance of operation of our manufacturing facilities, contract manufacturing and research and development
operations. There can be no assurance that we will ever achieve or sustain profitability on a quarterly or annual basis.
In January 2021, we successfully completed our registered direct offering and sale of 621,170 ordinary shares in the
form of ADS at a purchase price of € 13.33 per share (this equals USD 16.16 per ordinary share based on the exchange rate as of
the close of business in New York on January 14, 2021). This provided voxeljet with gross proceeds of approximately USD 10
million (€ 8.3 million) before deducting fees and expenses. In February 2021, we completed another registered direct offering and
sale of 443,414 ordinary shares in the form of ADS at a purchase price of EUR 22.27 per ordinary share (this equals USD 26.95
per ordinary share based on the exchange rate as of the close of business in New York on February 9, 2021). This provided
voxeljet with gross proceeds of approximately USD 12 million (€ 9.9 million) before deducting fees and expenses. Those capital
increases improved our liquidity as well as equity ratio significantly. In spite of this success, management is taking further steps
to raise further funds which may include debt or equity financing, not without mentioning, that there can be no assurance that we
will be able to raise further funds on terms favorable to us, if at all.
Due to the disbursement of the € 5.0 million of the second tranche of the loan, granted by EIB as well as the successful
capital raises in January and February 2021, we believe that our cash resources are sufficient to support our business plan for at
least the next 24 months and beyond, based on the assumption that our business plan is executed appropriately and sales track as
expected. The global spread of COVID-19 increases the uncertainties and risks for the Company. Nevertheless, our current
forecasts, which already consider adverse impacts from the COVID-19 pandemic and the related downturn of the global
economy, supports the assumption of our ability to meet our financial obligations for the next 24 months and further.
Matters relating to or arising from our Audit Committee investigation, including potential regulatory
investigations and proceedings, litigation matters, and additional expenses, may adversely affect our
business and results of operations.
As previously disclosed in our public filings with the SEC, our Audit Committee completed an internal
investigation (the “Audit Committee Investigation”). The Company has self-reported to the Enforcement Division of the SEC on
these matters and will fully cooperate in any review by the SEC, although we are unable at this time to predict what action, if any,
it may take.
The Audit Committee Investigation concluded in April 2020. The Audit Committee did not find fraud or intentional
misconduct by the Company’s management or accounting personnel. However, the Audit Committee did note certain weaknesses
and a degree of informality with respect to certain processes pertaining to aspects of the review and tracking of financial
reporting and disclosure. The Audit Committee proposed certain recommendations, including implementing additional training
with respect to the Company’s reporting and auditing obligations and requirements and developing and documenting an enhanced
risk assessment process and internal controls system in corresponding areas.
We may devote significant time and attention, and incur significant expenses, in connection with remediation of the
deficiencies in our risk management and controls identified by the Audit Committee Investigation. For more information on our
material weaknesses, see “—Material weaknesses in our internal control over financial reporting have been identified, and if we
fail to implement and maintain effective internal control over financial reporting, we may be unable to accurately report our
results of operations, meet our reporting obligations or prevent fraud.” and “Item 15. Controls and Procedures.”
Any resulting SEC actions in connection with the Audit Committee Investigation cannot be predicted. If the SEC
initiates an enforcement proceeding, we could be required to pay civil penalties, which could be substantial, and/or be subject to
other remedies. We can provide no assurances as to the outcome of any governmental investigation.
We have incurred, and may continue to incur, significant expenses related to legal and other professional services in
connection with the Audit Committee Investigation, which may continue to adversely affect our business and financial
condition. In addition, the outcome of any regulatory proceedings, litigation or government enforcement actions that may result
from these matters is difficult to predict, and the cost to defend, settle, or otherwise resolve these
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matters may be significant. Regulatory agencies or authorities, or other parties in these matters may seek very large or
indeterminate amounts. An unfavorable resolution of litigations, proceedings or actions could have a material adverse effect on
our business, financial condition, and results of operations and cash flows and also could result in a significant burden on
management time and resources. Any future investigations or additional lawsuits may also adversely affect our business,
financial condition, results of operations, and cash flows.
Material weaknesses in our internal control over financial reporting have been identified, and if we fail to implement and
maintain effective internal control over financial reporting, we may be unable to accurately report our results of operations,
meet our reporting obligations or prevent fraud.
The Sarbanes-Oxley Act requires, among other things, that we maintain effective internal control over financial
reporting and disclosure controls and procedures. As of December 31, 2020, we did not maintain an effective control
environment attributable to certain identified material weaknesses. We describe these material weaknesses in Item 15. Controls
and Procedures. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting,
such that there is a reasonable possibility that a material misstatement of the entity’s annual or interim financial statements will
not be prevented or detected and corrected on a timely basis.
Management has disclosed material weaknesses in each of its Forms 20-F over a period of seven years, from fiscal year
2013 through the current fiscal year 2020.
To remediate the material weaknesses, we will continue to develop and implement our remediation plan as described in
“Item 15. Controls and Procedures”. Our remediation efforts are not yet complete. There can be no assurance as to when the
remediation plan will be fully implemented or whether the remediation efforts will be successful.
Until our remediation plans are fully implemented, our management will continue to devote time and attention to these
efforts. The existence of these or other material weaknesses in our internal control over financial reporting could require us to
restate our financial statements, cause us to fail to meet our reporting obligations, and cause stockholders to lose confidence in
our reported financial information, all of which could materially and adversely affect our business and stock price.
Our indebtedness could adversely affect our financial condition.
We have a total long-term debt of € 23.2 million outstanding as of December 31, 2020 out of which € 18.0 million is
borrowed from the EIB. We are obliged to pay a Performance Participation Interest (“PPI”) to the EIB based on the market price
of our shares at the maturity of a Synthetic Warrant Agreement with the EIB. Payment of PPI to the EIB may adversely affect our
financial condition and have a significant negative impact on our cash flows. As of December 31, 2019, we were in breach of
our Total Net Financial Debt to EBITDA ratio financial covenant under the Finance Contract with the EIB. However, in March
2020, we received a waiver for the covenant as of June 30, 2019 and December 31, 2019 and a grace period, ending March 31,
2021, within which the EIB cannot demand immediate repayment and we can rectify the breach. In return, we registered a first
rank land charge on our land and facility located in Friedberg (Germany) Paul-Lenz-Straße, 1a as collateral in favor of the EIB in
March 2020. In June 2020, we announced that the EIB and voxeljet AG further expanded our partnership. The EIB disbursed
€ 5.0 million of the second tranche (tranche B1) of the loan in June 2020 with a bullet repayment after five years. In addition, we
amended the financial covenants in the Finance Contract to replace the Total Net Financial Debt to EBITDA ratio with the
Minimum Cash Covenant. As of June 30, 2020, pursuant to the semi-annual financial testing prescribed by the Finance Contract,
as amended, we were in compliance with the Minimum Cash Covenant. However, in March 2021, we discovered that our
calculation of cash and cash equivalents for determining compliance with the Minimum Cash Covenant was incorrect and,
accordingly, we were not in compliance with the Minimum Cash Covenant as of December 31, 2020. Also in March 2021, we
received a waiver from the EIB for the noncompliance with the Minimum Cash Covenant, pursuant to which (i) the EIB agreed
that it will not demand immediate repayment of the outstanding amounts owed and (ii) the EIB and the Company amended the
financial covenants in the Finance Contract to clarify the calculation of cash and cash equivalents for determining compliance
with the Minimum Cash Covenant.
While we have obtained waivers for curing the prior breaches of the financial coveants in our Finance Contract with the
EIB, our ability to meet the financial covenants or requirements going forward may be affected by events beyond our control, and
we cannot assure you that we will satisfy such covenants and requirements. A breach of these
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covenants or our inability to comply with the restrictions could result in an event of default under our debt arrangements which,
in turn, could result in an event of default under the terms of our other indebtedness. If this were to happen, we cannot assure you
that our assets would be sufficient to repay in full the payments due under those arrangements or our other indebtedness or that
we could find alternative financing to replace that indebtedness.
We need to raise additional capital from time to time in order to meet our growth strategy as well as to support the
continuation of our operation and may be unable to do so on attractive terms, or at all.
We intend to continue to make investments to support the growth of our business and may require additional funds to
respond to business challenges, including the need to implement our growth strategy, increase market share in our current
markets or expand into other markets, or broaden our technology, intellectual property or service capabilities. Accordingly, we
require additional investments of capital from time to time, and our existing sources of cash and any funds generated from
operations may not provide us with sufficient capital. For various reasons, including material uncertainties that cast significant
doubt about our ability to continue as a going concern, any noncompliance with existing or future lending arrangements,
additional financing, including raising capital through government or other grant funding, or issuing equity and lease financing
for sale and leaseback transactions, may not be available when needed, or may not be available on terms favorable to us. If we
fail to obtain adequate capital on a timely basis or if capital cannot be obtained on terms satisfactory to us, we may not be able to
achieve our planned rate of growth, which will adversely affect our results of operations.
We need certain commercial success of the financed research and development project.
We entered into an investment loan commitment of a total of € 25.0 million with the EIB. This loan commitment is
guaranteed by the European Union (or “EU”) under the European Fund for Strategic Investments and is limited to 50% of the
total cost of a research and development project. The first loan tranche A of € 10.0 million as well as a tranche B1 of
€ 5.0 million were already disbursed, and further € 10.0 million disbursement of tranches B2 and C is dependent on achieving
certain sales and EBITDA performance targets.
Our revenues and operating results may fluctuate.
Our revenues and operating results may fluctuate from quarter-to-quarter and year-to-year and are likely to continue to
vary due to a number of factors, many of which are not within our control. A significant portion of our 3D printer orders are
typically received during the second and fourth quarters of the fiscal year as a result of the timing of capital expenditures of our
customers. Our 3D printers typically are shipped between three and nine months after an order is received. Thus, revenues and
operating results for any future period are not predictable with any significant degree of certainty. We also typically experience
weaker demand for our 3D printers in the first and third quarters. For these reasons, comparing our operating results on a period-
to-period basis may not be meaningful. Until our business grows more significantly, the timing of individual printer sales,
because of the cost of our largest printers, can have meaningful effects on our quarterly results. You should not rely on our past
results as an indication of our future performance. Please also refer to risk factor “We face risks related to health epidemics and
other widespread outbreaks of contagious disease, such as COVID-19, which could significantly disrupt our operations and
impact our operating results and/or cash flows.”.
Fluctuations in our operating results and financial condition may occur due to a number of factors, including, but not
limited to, those listed below and those identified throughout this annual report:
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the degree of market acceptance of our products;
the mix of machines and products that we sell during any period;
our long sales cycle including our ability to adapt production to demand;
the entry of new competitors into our market;
generally weaker demand for 3D printers in the first and third quarters;
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● weaker demand for products from our Services segment due to the slow-down of the automotive industry in Europe
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development of new competitive systems or processes by others;
changes in our pricing policies or those of our competitors, including our responses to price competition, impacting
our ability to realize work in progress at expected gross margins;
delays between our expenditures to develop and market new or enhanced 3D printers and products and the
generation of sales from those products;
changes in the amount we spend in our marketing and other efforts;
delays between our expenditures to develop, acquire or license new technologies and processes, and the generation
of sales related thereto;
changes in the cost of satisfying our warranty obligations and servicing our installed base of products;
our level of research and development activities and their associated costs and rates of success;
changes in the size and complexity of our organization, including our operations outside of Europe;
increased expenses in connection with improving our internal control over financial reporting;
interruptions to or other problems with our website and interactive user interface, information technology systems,
manufacturing processes or other operations;
general economic and industry conditions that affect end-user demand and end-user levels of product design and
manufacturing;
changes in accounting rules and tax laws; and
changes in interest rates and currency exchange rates that affect returns on our cash balances and short-term
investments.
Our margins and EBIT may fluctuate.
Margins and EBIT in both our Systems and Services segments may fluctuate from quarter-to-quarter and year-to-year
and are likely to continue to vary due to a number of factors, many of which are beyond our control, including fluctuations in
foreign exchange rates, increased competition and increased expenses. To pursue our growth strategy, we have expanded by
establishing operations in different countries. While the subsidiary in China is in the start-up phase, we may not be able to
achieve our desired gross margin and EBIT targets for this subsidiary, which may lead to a weaker margin and EBIT contribution
from these subsidiaries to us. At our German operation, gross margin and EBIT could also fluctuate significantly, for instance
due to changes in demand and other economic factors.
Our strategic restructurings may not achieve intended benefits and the related restructuring cost could have a material
adverse effect on our business and results of operations.
In the third quarter of 2019, we started a restructuring for our subsidiary voxeljet UK, which includes the shut down of
the service center in the UK accompanied by a reduction in headcount and disposal of certain assets.
Furthermore, we initiated a voluntary reduction in workforce program for our German operations in the first quarter of
2020, which was announced in November 2019. As required under German law, we consulted and negotiated in December 2019
with our German employees’ workers’ council in connection with the restructuring plan and began rolling out a voluntary
termination program, which offers employees certain compensation for leaving the Company through a voluntary termination
agreement. On April 16, 2020, the voluntary program expired with the result that the
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desired reduction in headcount has been completely achieved through the voluntary program, and therefore the cost saving targets
have been fully implemented.
The Company’s success is dependent on the skills of our key personnel. Our restructuring plans involving workforce
reduction may lead to an unintended loss of experienced employees or know-how. The loss of any member of our key personnel
and actual or threatened work slowdowns or stoppages could lead to operational delays or cost increases. If these incidents occur
or if we are unable to attract, retain and maintain productive relations with our employees and key professionals, our operating
results and financial condition may be adversely affected. There is also a risk that our restructuring plan will not capture all of the
intended benefits or may not result in the expected cost savings. Further, the restructuring may yield unintended consequences
such as attrition beyond our targeted workforce reduction. These risks may impact our business, financial condition, results of
operations and cash flows.
We may not be able to manage the expansion of our operations effectively in order to achieve our projected levels of growth.
We have expanded our operations significantly in recent periods, including our German U.S. and Chinese operations,
and our business plan calls for further expansion over the next several years, including Asia and North America. After the
restructuring of our UK operation, we are more focused in addressing the automotive and aerospace industry. Our expansion in
Asia is proceeding through our subsidiaries in India and China. The legal, market and cultural environment in both India and
China represent challenges for our management. We anticipate that further development of our infrastructure and an increase in
the number of our employees will be required to achieve our planned broadening of our product offerings and client base,
improvements in our 3D printers and materials used in our 3D printers, and our planned international growth. In particular, we
must increase our marketing and services staff to support new marketing and service activities and to meet the needs of both new
and existing customers. Our ability to successfully increase our marketing efforts is not guaranteed, and if we are not able to
successfully increase our marketing efforts, we may not be able to grow our business as intended. Our future success will depend
in part upon the ability of our management to manage our growth effectively. If our management is unsuccessful in meeting these
challenges, we may not be able to achieve our anticipated level of growth, which would adversely affect our results of operations.
Our operations could suffer if we are unable to attract and retain key management or other skilled employees.
Our success depends upon the continued service and performance of our senior management and other key personnel.
Our senior management team is critical to the management of our business and operations, as well as to the development of our
strategy. The loss of the services of any members of our senior management team could delay or prevent the successful
implementation of our growth strategy, or the commercialization of new applications for our 3D printers or other products, or
could otherwise adversely affect our ability to manage our Company effectively and carry out our business plan. Members of our
senior management team may resign at any time. High demand exists for senior management and other key personnel in the
additive manufacturing industry, and there can be no assurance that we will be able to retain such personnel. We do not carry
key-man insurance on any member of our senior management team.
Our growth and success will also depend on our ability to attract, retain and train additional highly-qualified scientific,
technical, sales, managerial and finance personnel, including qualified personnel with experience and knowledge of IFRS. We
have experienced and expect to continue to experience intense competition for qualified personnel. While we intend to continue
to provide competitive compensation packages to attract and retain key personnel, some of our competitors for these employees
have greater resources and more experience, making it difficult for us to compete successfully for key personnel. If we cannot
attract and retain sufficiently qualified technical employees for our research and development and manufacturing operations, we
may be unable to develop and commercialize new products or new applications for existing products. Furthermore, possible
shortages of skilled personnel, including engineers, in the regions surrounding our European facilities as well as our facilities in
China and India could require us to pay more to hire and retain skilled personnel, thereby increasing our costs.
A loss of a significant number of our sales agents would impair our ability to sell our products and services and could reduce
our revenues and adversely impact our operating results.
We expect a significant portion of our sales of our products to be made with the assistance of our network of sales
agents. We rely heavily on these sales agents to facilitate sales of our products to end-users in their respective geographic regions.
Furthermore, we rely on sales agents to service our products. These sales agents are generally not
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precluded from selling our competitors’ products in addition to ours. In addition, they may not be effective in selling our products
or servicing our end-users. Further, if a significant number of these sales agents were to terminate their relationships with us or
otherwise fail or refuse to facilitate sales of our products, we may not be able to find replacements that are as qualified or as
successful. If these sales agents do not perform as anticipated or if we are unable to find qualified and successful replacements,
our sales will suffer, which would have a material adverse effect on our revenues and operating results.
We face significant competition in many aspects of our business, which could cause our revenues and gross profit margins to
decline. Competition could also cause us to reduce sales prices or to incur additional marketing or production costs, which
could result in decreased revenue, increased costs and reduced margins.
We compete for customers with a wide variety of producers of equipment for models, prototypes, other 3D objects and
end-use parts as well as producers of print materials and services for this equipment. Some of our existing and potential
competitors are researching, designing, developing and marketing other types of competitive equipment, print materials and
services. Many of these competitors have financial, marketing, manufacturing, distribution and other resources that are
substantially greater than ours.
We also expect that future competition may arise from the development of allied or related techniques for equipment
and print materials that are not encompassed by our patents, from the issuance of patents to other companies that may inhibit our
ability to develop certain products, from our entry into new geographic markets and industries and from improvements to existing
print materials and equipment technologies. In addition, a number of companies have announced beginning production of 3D
printers, which will further enhance the competition we face.
We intend to continue to follow a strategy of continuing product development to enhance our position to the extent
practicable. We cannot assure you that we will be able to maintain our current position in the field or continue to compete
successfully against current and future sources of competition. If we do not keep pace with technological change and introduce
new products, our revenues and demand for our products may decrease.
If we are not able to convert our work in progress into sales, it could lead to an undesirable increase of inventory and
consequently to an allowance for slow-moving inventory.
Our operations outside of Germany subject us to various risks, and our failure to manage these risks could adversely affect
our results of operations.
Our business is subject to certain risks associated with doing business globally. Our sales outside of Germany
represented 78%, 82%, and 75% of our total sales in 2020, 2019, and 2018, respectively. We currently have subsidiaries in China,
India, the UK and the United States. One of our growth strategies is to further pursue opportunities for our business in several
areas around the world, both inside and outside of Germany and Europe, any or all of which could be adversely affected by the
risks set forth below. Accordingly, we face significant operational risks as a result of doing business internationally, such as:
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fluctuations in foreign currency exchange rates;
potentially longer sales and payment cycles;
potentially greater difficulties in collecting accounts receivable;
potentially adverse tax consequences;
challenges in providing solutions across a significant distance, in different languages and among different cultures;
different, complex and changing laws governing intellectual property rights, sometimes affording reduced
protection of intellectual property rights in certain countries;
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difficulties in staffing and managing foreign operations, particularly in new geographic locations;
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restrictions imposed by local labor practices and laws on our business and operations;
rapid changes in government, economic and political policies and conditions, political or civil unrest or instability,
terrorism, epidemics or pandemics like COVID-19 and other similar outbreaks or events;
operating in countries with a higher incidence of corruption and fraudulent business practices;
seasonal reductions in business activity in certain parts of the world, particularly during the summer months in
Europe;
costs and difficulties of customizing products for foreign countries;
compliance with a wide variety of complex foreign laws, treaties and regulations;
transportation delays;
tariffs, trade barriers and other regulatory or contractual limitations on our ability to sell or develop our products in
certain foreign markets; and
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becoming subject to the laws, regulations and court systems of multiple jurisdictions.
Our failure to manage the market and operational risks associated with our international operations effectively could
limit the future growth of our business and adversely affect our results of operations.
Our international operations pose currency risks, which may adversely affect our operating results and net income.
Our operating results may be affected by volatility in currency exchange rates and our ability to effectively manage our
currency transaction risks. Currency exchange rate fluctuations have had an impact on our results because voxeljet AG provided
intercompany loans to its subsidiaries in foreign currency. As we realize our strategy to expand internationally, our exposure to
currency risks will increase. We do not manage our foreign currency exposure in a manner that would eliminate the effects of
changes in foreign exchange rates. Therefore, changes in exchange rates between these foreign currencies and the Euro will affect
our revenues, cost of goods sold, and operating margins, and could result in exchange losses in any given reporting period.
We incur currency transaction risks whenever we enter into either a purchase or a sale transaction using a different
currency from the currency in which we report revenues. In such cases we may suffer an exchange loss because we do not
currently engage in currency swaps or other currency hedging strategies to address this risk.
Given the volatility of exchange rates, we can give no assurance that we will be able to effectively manage our currency
transaction risks or that any volatility in currency exchange rates will not have an adverse effect on our results of operations.
We may engage in future acquisitions that could disrupt our business, cause dilution to our shareholders and harm our
financial condition and operating results.
While we currently have no specific plans to acquire any other businesses, we may, in the future, engage in joint
ventures with or make acquisitions of, or investments in, companies that we believe have products or capabilities that are a
strategic or commercial fit with our current business or otherwise offer opportunities for our Company. In connection with these
acquisitions or investments, we may:
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issue ADSs or other forms of equity that would dilute our existing shareholders’ percentage of ownership;
incur debt and assume liabilities; and
incur amortization expenses related to intangible assets or incur large and immediate write-offs.
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We may not be able to complete future acquisitions on favorable terms, if at all. If we do complete an additional
acquisition, we cannot assure you that it will ultimately strengthen our competitive position or that it will be viewed positively by
customers, financial markets or investors. Furthermore, future acquisitions could pose numerous additional risks to our
operations, including:
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problems integrating the purchased business, products or technologies;
challenges in achieving strategic objectives, cost savings and other anticipated benefits;
increases to our expenses;
the assumption of significant liabilities that exceed the limitations of any applicable indemnification provisions or
the financial resources of any indemnifying party;
inability to maintain relationships with key customers, vendors and other business partners of the acquired
businesses;
diversion of management’s attention from their day-to-day responsibilities;
difficulty in maintaining controls, procedures and policies during the transition and integration;
entrance into marketplaces where we have no or limited prior experience and where competitors have stronger
marketplace positions; and
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potential loss of key employees, particularly those of the acquired entity.
Global economic, political and social conditions have adversely impacted our sales and may continue to do so.
The recent declines in the global economy, difficulties in the financial services sector and credit markets, continuing
geopolitical uncertainties and other macroeconomic factors all affect spending behavior of potential end-users of our products.
The economic uncertainty in Europe, the United States, India, China and other countries may cause end-users to further delay or
reduce technology purchases. In particular, a substantial portion of our sales are made to customers in countries in Europe, which
has experienced a significant economic crisis beginning in 2007.
For example, the UK ceased to be a member state of the EU on January 31, 2020 commonly referred to as “Brexit,” and
the transition period provided for in the withdrawal agreement entered by the UK and the EU ended on December 31, 2020. In
December 2020, the UK and the EU agreed on a trade and cooperation agreement, given effect by the UK on December 31, 2020,
that will apply provisionally after the end of the transition period until its expected formal adoption by the EU in early 2021.
Notably, under the trade and cooperation agreement, UK service suppliers no longer benefit from automatic access to the entire
EU single market, UK goods no longer benefit from the free movement of goods and there is no longer the free movement of
people between the UK and the EU. The lack of clarity about future U.K. laws and regulations creates uncertainty for us, as the
application of the trade and cooperation agreement may affect our business and operations. For example, the imposition of tariffs
following the Brexit may have a material adverse effect on our financial position or results of operations. Additionally, there also
is a risk that other countries may decide to leave the EU. The uncertainty surrounding Brexit not only potentially affects our
business in the U.K. and the EU, but may have a material adverse effect on global economic conditions and the stability of global
financial markets, which in turn could have a material adverse effect on our business, financial condition, and results of
operations. In extreme cases, we could experience interruptions in production due to the processing of customs formalities or
reduced customer spending in the wake of weaker economic performance. If global economic conditions remain volatile for a
prolonged period or if European economies experience further disruptions, our results of operations could be adversely affected.
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Failure to comply with the U.S. Foreign Corrupt Practices Act or other applicable anti-corruption legislation could result in
fines, criminal penalties and an adverse effect on our business.
We operate in a number of countries throughout the world, including countries known to have a reputation for
corruption. We are committed to doing business in accordance with applicable anti-corruption laws. We are subject, however, to
the risk that our officers, directors, employees, agents and collaborators may take action determined to be in violation of such
anti-corruption laws, including the U.S. Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and the European
Union Anti-Corruption Act, as well as trade sanctions administered by the Office of Foreign Assets Control and the U.S.
Department of Commerce. Any such violation could result in substantial fines, sanctions, civil and/or criminal penalties or
curtailment of operations in certain jurisdictions, and might adversely affect our results of operations. In addition, actual or
alleged violations could damage our reputation and ability to do business.
Workplace accidents or environmental damage could result in substantial remedial obligations and damage to our reputation.
Accidents or other incidents that occur at our facilities or involve our personnel or operations could result in claims for
damages against us. In addition, in the event we are found to be financially responsible, as a result of environmental or other laws
or by court order, for environmental damages alleged to have been caused by us or occurring on our premises, we could be
required to pay substantial monetary damages or undertake expensive remedial obligations. The amount of any costs, including
fines or damages payments that we might incur under such circumstances could substantially exceed any insurance we have to
cover such losses. Any of these events, alone or in combination, could have a material adverse effect on our business, financial
condition and results of operations and could adversely affect our reputation.
Our operations are subject to environmental laws and other government regulations which could result in liabilities in the
future.
We are subject to domestic and foreign environmental laws and regulations governing our operations, including, but not
limited to, emissions into the air and water and the use, handling, disposal and remediation of hazardous substances. A certain
risk of environmental liability is inherent in our production activities. Under certain environmental laws, we could be held solely
or jointly and severally responsible, regardless of fault, for the remediation of any hazardous substance contamination at our
facilities and at facilities where our products are used and the respective consequences arising out of human exposure to such
substances or other environmental damage. We may not have been and may not be at all times in complete compliance with
environmental laws, regulations and permits, and the nature of our operations exposes us to the risk of liabilities or claims with
respect to environmental and worker health and safety matters. If we violate or fail to comply with environmental laws,
regulations and permits, we could be subject to penalties, fines, restrictions on operations or other sanctions, and our operations
could be interrupted.
The cost of complying with current and future environmental, health and safety laws applicable to our operations, or the
liabilities arising from past releases of, or exposure to, hazardous substances, may result in future expenditures. Any of these
developments, alone or in combination, could have a material adverse effect on our business, financial condition and results of
operations.
We may not have adequate insurance for potential liabilities, including liabilities arising from litigation.
In the ordinary course of business, we have been, and in the future may be, subject to various product and non-product
related claims, lawsuits and administrative proceedings seeking damages or other remedies arising out of our commercial
operations, including litigation related to defects in our products. We maintain insurance to cover our potential exposure for most
claims and losses. However, our insurance coverage is subject to various exclusions, self-retentions and deductibles, may be
inadequate or unavailable to protect us fully, and may be cancelled or otherwise terminated by the insurer. Furthermore, we face
the following additional risks related to our insurance coverage:
● we may not be able to continue to obtain insurance coverage on commercially reasonable terms, or at all;
● we may be faced with types of liabilities that are not covered under our insurance policies, such as environmental
contamination or terrorist attacks, and that exceed any amounts that we may have reserved for such liabilities;
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the amount of any liabilities that we may face may exceed our policy limits; and
● we may incur losses resulting from the interruption of our business that may not be fully covered under our
insurance policies.
Even a partially uninsured claim of significant size, if successful, could have a material adverse effect on our business,
financial condition, results of operations and liquidity. However, even if we successfully defend ourselves against any such claim,
we could be forced to spend a substantial amount of money in litigation expenses, our management could be required to spend
valuable time defending these claims and our reputation could suffer, any of which could adversely affect our results of
operations.
We may have exposure to greater than anticipated tax liabilities which could adversely affect our operating results.
Our future income taxes could be adversely affected by changes in tax laws, regulations, accounting principles or
interpretations thereof, in jurisdictions around the world. In addition, there is a risk that amounts paid or received in transactions
between us and one of our international subsidiaries could be deemed for transfer pricing purposes to be lower or higher than we
previously recognized or expected to recognize, or that distributions to us from one of our international subsidiaries could be
subject to withholding tax. Our determination of our tax liability is always subject to review by applicable tax authorities. Any
negative outcome of such a review could have an adverse effect on our operating results and financial condition. In addition, the
determination of our worldwide provision for income taxes and other tax liabilities requires significant judgment, and there are
many transactions and calculations where the ultimate tax determination is uncertain. Although we believe our estimates are
reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements and could adversely affect
our operating results.
Risks Related to Our Products
We may not be able to introduce new 3D printers and related print materials acceptable to the market or to improve the
technology and print materials used in our current 3D printers to meet customer demands.
Our revenues are derived from the sale of new or used and refurbished 3D printers and from the sale of products
manufactured using, additive manufacturing. Our market is subject to innovation and technological change. A variety of
technologies compete against one another in our market, which is, in part, driven by technological advances and end-user
requirements and preferences, as well as the emergence of new standards and practices. Our ability to compete in the industrial
additive manufacturing market depends, in large part, on our success in enhancing and developing new 3D printers, enhancing
and adding to our technology and developing and qualifying new materials in which we can print. In 2019, we developed the
VX1300 X, which is characterized by a very fast layer time and installed two units at a German premium car maker. In 2020, we
received the pre-acceptance from the car maker and our partners for those two units, which were installed in 2019. The
development of the VX1000 HSS which will upscale the HSS technology to one of our larger scale platforms proceeded in 2020
and first printing tests on the large HSS printer were successful. Presently the HSS technology is available on the VX200 HSS
system. We believe that to remain competitive we must continuously enhance and expand the functionality and features of our
products and technologies. However, we may not be able to:
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enhance our existing products and technologies;
continue to leverage advances in industrial printhead technology;
develop new products and technologies that address the increasingly sophisticated and varied needs of prospective
end-users, particularly with respect to the physical properties of print materials and other consumables;
respond to technological advances and emerging industry standards and practices on a cost-effective and timely
basis;
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adequately protect our intellectual property as we develop new products and technologies; or
ensure the availability of cash resources to fund research and development.
Even if we successfully enhance our existing 3D printers or create new 3D printers, it is likely that new 3D printers and
technologies that we develop will eventually supplant our existing 3D printers or that our competitors will create 3D printers that
will replace our 3D printers. As a result, any of our products may be rendered obsolete or uneconomical by our or others’
technological advances.
The long sales cycle for our products makes the timing of our revenues difficult to predict.
Generally, our 3D printers have a long sales cycle. Because our 3D printers are complex and typically involve
significant capital investments by prospective purchasers, we and our sales agents generally need to invest a significant amount of
time educating prospective purchasers about the benefits of our products. As a result, before purchasing our products, potential
purchasers may spend a substantial amount of time performing internal assessments before making a purchase. This may cause us
to devote significant effort in advance of a potential sale without any guarantee of receiving any related revenues. Delays in sales
could cause significant variability in our revenues and operating results for any particular period. In addition to that, delays in
sales could lead to an increase in work in progress resulting in an allowance for slow-moving inventories.
Declines in the prices of our products and services, or in our volume of sales, together with our relatively inflexible
cost structure, may adversely affect our financial results.
Our business is subject to price competition. Such price competition may adversely affect our ability to maintain the
same degree of profitability, especially during periods of decreased demand. Decreased demand also adversely impacts the
volume of our systems sales. If our business is not able to offset price reductions resulting from these pressures, or decreased
volume of sales due to contractions in the market, by improved operating efficiencies and reduced expenditures, then our
operating results will be adversely affected.
Certain of our operating costs are fixed and cannot readily be reduced, which diminishes the positive impact of our
restructuring programs on our operating results. To the extent the market for our products slows, or the 3D printing market
contracts, we may be faced with excess manufacturing capacity and excess related costs that cannot readily be reduced, which
will adversely impact our results of operations.
Demand for our products may not increase adequately.
The marketplace for industrial manufacturing is dominated by conventional manufacturing methods that do not involve
additive manufacturing technology. We may not be able to develop effective strategies to raise awareness among potential
customers of the benefits of our additive manufacturing technology. If additive manufacturing technology does not gain market
acceptance as an alternative for industrial manufacturing, or if the marketplace adopts additive manufacturing based on a
technology other than our technology, we may not be able to increase or sustain the level of sales of our products and machines
and our results of operations would be adversely affected as a result. If we are not able to manage the conversion from work in
progress to sales, it could lead to an undesirable increase of inventory resulting in allowance for slow-moving inventory.
We may not be able to significantly increase the number of materials for use in our 3D printers quickly enough to meet
our business plan, and, if we are successful, we may attract more competitors into our markets, some of which may be much
larger than we are. Furthermore, we may not be able to develop our 3D printers to serve in a mass production environment.
Our business plan is dependent in part upon our ability to steadily increase the number of qualified materials in which
our 3D printers can print, since this will increase our addressable market. However, qualifying new materials is a complicated
engineering task, and there is no way to predict whether, or when, any given material will be qualified. If we cannot hire a
sufficient number of skilled people to work on qualifying new materials for printing or if we lack the resources necessary to
create a steady flow of new materials, we will not be able to meet our business goals and a competitor may emerge that is better
at qualifying new materials, either of which would have an adverse effect on our business results.
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If, however, we succeed in qualifying a growing number of materials for use in our 3D printers as well as developing
our 3D printers to serve in a mass production environment, that should increase our addressable market, both as to customers and
products for customers. However, as we create a larger addressable market, our market may become more attractive to other 3D
printing companies or large companies that are not 3D printing companies but which may see an economic opportunity in the
markets we have created. Similarly, if our focus on selling large 3D printers and 3D printed products to industrial companies
proves successful, an increase in the number of competitors in that particular market is likely to adversely affect our business and
financial results.
Customers may decide to order parts rather than to purchase new or used and refurbished 3D printers. This may result in a
significant loss of revenues in the Systems segment.
Our Systems segment revenues largely depend on our ability to sell new or used and refurbished 3D printers to
customers. There may be various reasons why customers may choose to order parts from us rather than to purchase the full 3D
printer equipment, such as increased convenience, lower maintenance costs, etc. If there is an increasing trend for our customers
to place parts orders in lieu of equipment purchase orders and we are unable to reverse that trend, we may experience significant
losses in revenues in the Systems segment, which in turn could adversely affect our business and financial results.
Defects in new products or in enhancements to our existing products that give rise to product returns or warranty or other
claims could result in material expenses, diversion of management time and attention, and damage to our reputation.
Our 3D printing systems may contain undetected defects or errors when first introduced or as enhancements are released
that, despite testing, are not discovered until after a system has been used. This could result in delayed market acceptance of those
systems or claims from sales agents, end-users or others, which may result in litigation, increased end-user service and support
costs and warranty claims, damage to our reputation and business, or significant costs to correct the defect or error. We may from
time to time become subject to warranty or product liability claims related to product quality issues that could lead us to incur
significant expenses.
We could face liability if our 3D printers are used by our customers to print dangerous objects.
Customers may use our 3D printers to print parts that could be used in a harmful way or could otherwise be dangerous.
For example, there have been news reports that 3D printers were used to print guns or other weapons. We have little, if any,
control over what objects our customers print using our 3D printers, and it may be difficult, if not impossible, for us to monitor
and prevent customers from printing weapons with our 3D printers. While we have never printed weapons in any of our service
centers, there can be no assurance that we will not be held liable if someone were injured or killed by a weapon printed by a
customer using one of our 3D printers.
If our manufacturing facility or any of our on-demand parts service centers are disrupted, sales of our products may be
affected, which could result in loss of revenues and unforeseen costs.
We manufacture our machines at our facilities in Germany and China. We currently operate on-demand parts service
centers located in Germany, the United States, and China and plan to operate in other locations in the future. If the operations of
our production facilities are materially disrupted, whether by natural disasters, epidemics or pandemics like COVID-19,
demonstrations, acts of terror, or otherwise, we would be unable to fulfill customer orders for the period of the disruption, we
would not be able to recognize revenues on orders, we could suffer damage to our reputation, and we might need to modify our
standard sales terms to secure the commitment of new customers during the period of the disruption and perhaps longer.
Depending on the cause of the disruption, we could incur significant costs to remedy the disruption and resume product
shipments. Such a disruption could have an adverse effect on our results of operations.
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Risks Related to Information Technology and Information Security
We rely on our information technology systems to manage numerous aspects of our business and customer and supplier
relationships, and a disruption of these systems could adversely affect our results of operations.
We rely on our information technology, or IT, systems to manage numerous aspects of our business and provide
analytical information to management. Our IT systems allow us to efficiently purchase products from our suppliers, provide
procurement and logistic services, ship products to our customers on a timely basis, maintain cost-effective operations and
provide service to our customers. Our IT systems are an essential component of our business and growth strategies, and a
disruption to our IT systems could significantly limit our ability to manage and operate our business efficiently. In 2020, we had
effective general information technology general controls (GITCs) over our Enterprise Resource Planning system that supports
the Company’s financial reporting processes. We are required to further automate our processes and reduce the dependence on
manual controls. In late 2020, we set up an automated consolidation process in the test environment of our existing Enterprise
Resource Planning system. The go live for this new feature is scheduled for the first quarter of 2021. Although we
assume this will not be the case, we could fail with the technical realization of further automating our processes. In addition, our
computer systems are subject to damage and interruption from power outages, computer and telecommunications failures,
computer viruses, cyber-attack or other security breaches, catastrophic events such as fires, floods, earthquakes, tornadoes,
hurricanes, acts of war or terrorism, and usage errors by our employees. If our computer systems are damaged or cease to
function properly, or, if we do not replace or upgrade certain systems, we may incur substantial costs to repair or replace them
and may experience an interruption of our normal business activities or loss of critical data. Any such disruption could adversely
affect our reputation, brand and financial condition.
Regulation in the areas of privacy, data protection and information security could increase our costs and affect or limit our
business opportunities and how we collect and/or use personal information.
As privacy, data protection and information security laws, including data localization laws, are interpreted and applied,
compliance costs may increase, particularly in the context of ensuring that adequate data protection and data transfer mechanisms
are in place. In recent years, there has been increasing regulatory enforcement and litigation activity in the areas of privacy, data
protection and information security in the U.S., Germany, and in various other countries in which we operate.
In addition, state and federal legislators and/or regulators in the U.S., Germany, and other countries in which we operate
are increasingly adopting or revising privacy, data protection and information security laws that potentially could have significant
impact on our current and planned privacy, data protection and information security-related practices, our collection, use, sharing,
retention and safeguarding of consumer and/or employee information, and some of our current or planned business activities.
New legislation or regulation could increase our costs of compliance and business operations and could reduce revenues from
certain business initiatives. Moreover, the application of existing or new laws to existing technology and practices can be
uncertain and may lead to additional compliance risk and cost.
Our European activities are subject to the European Union General Data Protection Regulation, or GDPR, which has
created additional compliance requirements for us. GDPR broadens the scope of personal privacy laws to protect the rights of EU
citizens and requires organizations to report on data breaches within 72 hours and be bound by stringent rules for obtaining the
consent of individuals on how their data can be used. GDPR became enforceable on May 25, 2018, and non-compliance exposes
entities such as our company to significant fines or other regulatory claims.
Compliance with current or future privacy, data protection and information security laws relating to consumer and/or
employee data could result in higher compliance and technology costs and could restrict our ability to provide certain products
and services, which could materially and adversely affect our profitability. Our failure to comply with privacy, data protection
and information security laws could result in potentially significant regulatory and/or governmental investigations and/or actions,
litigation, fines, sanctions, ongoing regulatory monitoring, customer attrition, decreases in the use or acceptance of our products
and services and damage to our reputation and our brand.
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Risks Related to Our Dependence on Third Parties
We are highly dependent upon sales to certain industries.
Our revenues of machines and products are relatively concentrated in companies in the automotive, foundry, aerospace
and art and architecture industries and those industries’ respective suppliers. To the extent any of these industries experiences a
downturn and we are unable to penetrate and expand into other industries, our results of operations may be adversely affected.
Additionally, if any of these industries or their respective suppliers or other providers of manufacturing services develop new
technologies or alternatives to manufacture the products that are currently manufactured using our 3D printers, it may adversely
affect our results of operations. Recently, we have seen a decrease in demand from the automotive industry in Europe, which has
had a negative impact on our revenues.
If our relationships with suppliers, especially with limited source suppliers of components of and consumables for our
products, were to terminate or our manufacturing arrangements were to be disrupted, our business could be adversely
affected.
We purchase components and certain sub-assemblies for our systems and consumables that are used in our print
materials from third-party suppliers. While there are several potential suppliers of most of the components and sub-assemblies for
our systems, and for most of the consumables for our print materials, we currently choose to use only a limited number of
suppliers for several of these components and materials. Our reliance on a limited number of vendors involves a number of risks,
including:
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potential shortages of some key components;
product performance shortfalls, if traceable to particular product components, since the supplier of the faulty
component cannot readily be replaced;
discontinuation of a product on which we rely;
potential insolvency of these vendors; and
reduced control over delivery schedules, manufacturing capabilities, quality and costs.
In addition, we require any new supplier to become “qualified” pursuant to our internal procedures. The qualification
process involves evaluations of varying durations, which may cause production delays if we were required to qualify a new
supplier unexpectedly. We generally assemble our systems based on our internal forecasts and the availability of consumables,
assemblies, components and finished goods that are supplied to us by third parties, which are subject to various lead times. If
certain suppliers were to decide to discontinue production of an assembly, component or consumable that we use, the
unanticipated change in the availability of supplies, or unanticipated supply limitations, could cause delays in or loss of sales,
increased production or related costs and, consequently, reduced margins, and damage to our reputation. If we are unable to find
a suitable supplier for a particular component, consumable or compound, we could be required to modify our existing products to
accommodate substitute components, consumables or compounds. In addition, because we use a limited number of suppliers,
increases in the prices charged by our suppliers may have an adverse effect on our results of operations, as we may be unable to
find a supplier who can supply us at a lower price. As a result, the loss of a limited source supplier could adversely affect our
relationships with our customers and our results of operations and financial condition.
Risks Related to Ownership of Our ADSs
The price of our ADSs has fluctuated significantly and may continue to be volatile in the future, and as a result, investors in
our ADSs could incur substantial losses.
The stock market generally, including our ADSs, has experienced extreme price and volume fluctuations that have often
been unrelated or disproportionate to the operating performance of listed companies. For example, on February 8, 2021, the
market price of our ADSs closed at $36.00 per share while on February 26, 2021, the market price of our ADSs closed at $17.00
per share without disclosure of news or other developments by us. Also on February 8, 2021, the opening price of our ADSs was
$24.00 and the intra-day sales price of our ADSs fluctuated between a reported
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low sale price of $23.62 and a reported high sales price of $36.00. Our volume on February 26, 2021 was 113,300, which was a
substantial decrease from the volume of 322,500 and 248,100 on the two days immediately preceding February 25, 2021. We
may incur rapid and substantial increases or decreases in the market price of our ADSs in the foreseeable future that do not
coincide in timing with the disclosure of news or developments by us.
In addition, companies trading in the stock market in general, and The Nasdaq Capital Market in particular, have
experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating
performance of these companies. These broad market and industry factors may seriously harm the market price of our ADSs,
regardless of our operating performance. There can be no guarantee that the market price of our ADSs will remain at current
prices.
Our ADSs may become the target of a “short squeeze.”
Securities of certain companies have increasingly experienced significant and extreme volatility in stock price due to
short sellers of shares of common stock, known as a “short squeeze.” These short squeezes have caused extreme volatility in
those companies and in the market and have led to the price per share of those companies to trade at a significantly inflated rate
that is disconnected from the underlying value of the company. Many investors who have purchased shares in those companies at
an inflated rate face the risk of losing a significant portion of their original investment as the price per share has declined steadily
as interest in those stocks have abated. There can be no assurance that we will not, in the future be, a target of a short squeeze,
and you may lose a significant portion or all of your investment if you purchase our shares at a rate that is significantly
disconnected from our underlying value.
Substantial future sales of our ordinary shares or ADSs in the public market, or the perception that these sales could occur,
could cause the price of the ADSs to decline.
Future sales of a substantial number of our shares or ADSs, or the perception that such sales will occur, could cause a
decline in the market price of the ADSs. Pursuant to a shelf registration statement on Form F-3, in January 2021, we issued
621,170 ordinary shares, equivalent to an equal number of ADSs, in a registered direct offering (the “January 2021 Offering”).
Further, in February 2021, we issued another 443,414 ordinary shares, equivalent to an equal number of ADSs, in a registered
direct offering (the “February 2021 Offering”). After those two capital increases of approximately $10.0 million and
$12.0 million, the $22.0 million registered on our shelf registration statement on Form F-3 was completely utilized.
To the extent that we raise additional funds through the issuance and sale of equity or other securities that are
convertible into or exchangeable for, or that represent the right to receive, ordinary shares or substantially similar securities, the
terms may include liquidation or other preferences that adversely affect shareholder rights and the existing shareholders’
ownership interests will be diluted if the statutory shareholders’ subscription right is not exercised by the shareholders or is
excluded by the general shareholders’ meeting or the Management Board.
Under the German Stock Corporation Act, every shareholder is entitled to subscription rights for new ordinary shares to
be issued or for other new securities that are convertible into or exchangeable for, or that represent the right to receive, ordinary
shares or substantially similar securities.
However, our shareholders at the general shareholders’ meeting can resolve to exclude such statutory subscription rights
with an affirmative vote of a majority of at least three-quarters of the share capital represented at the meeting. An exclusion of
subscription rights also requires a report from the Management Board to the effect that the interests of our Company in excluding
the subscription rights outweigh the interests of the shareholders to be entitled to a subscription. An exclusion of subscription
rights may be permissible without such justification if our Company is increasing the capital in return for cash contributions, the
amount of the capital increase does not exceed 10 percent of the existing share capital of our Company, and the issue price of the
new shares is not significantly lower than the trading price for shares in our Company of the same class and having the same
features already listed at the time of the final determination of the issue price. The trading price may also be determined by the
market price of an ADS listed on the NYSE, multiplied by the number of ADSs which represent a share.
Shareholders at the general shareholders’ meeting may also authorize the Management Board to exclude the statutory
shareholders’ subscription right for new ordinary shares to be issued or for other new securities that are
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convertible into or exchangeable for, or that represent the right to receive, ordinary shares or substantially similar securities.
After the January 2021 Offering and the February 2021 Offering, the Management Board is utilizing the authorized
share capital pursuant to Section 5 of the articles of association of our Company – which authorizes the Management Board, with
the consent of the supervisory board, to increase our Company's registered share capital in one or more tranches by up to an
additional € 1,353,416 by issuing up to 1,353,416 new no-par value ordinary shares (equivalent to 1,353,416 ADSs) against
contributions in cash or in kind until May 28, 2024. The Management Board is authorized to exclude the statutory shareholders’
subscription rights with the consent of the supervisory board (i) to exclude fractional amounts resulting from the subscription
ratio from the statutory shareholders’ subscription right, (ii) in case of capital increases in kind, in particular, but without
limitation, to acquire companies, divisions of companies or interests in companies, (iii) in case of capital increases in cash
provided that the issue price of the new shares is not substantially lower than the trading price for shares in our Company of the
same class and having the same conditions already listed at the time of the final determination of the issue price (the trading price
shall also be understood to mean the price of an ADS listed on the NASDAQ multiplied by the number of ADSs representing one
share) and further provided that the amount of the share capital represented by the shares issued in this context under the
exclusion of the statutory shareholders’ subscription tight does not exceed 10 percent of the share capital both at the time when
such authorization came into effect and when it is utilized or (iv) in case of capital increases in cash if this is done for the purpose
of issuing shares to be placed at the U.S. capital market or with institutional and/or private investors through ADSs and in this
connection also to cover an over-allotment option granted to the issuing banks, to the extent that the total number of shares issued
in accordance with this authorization to exclude subscription rights does not exceed 30% of the share capital and the issue price
of the new shares is not substantially lower than the stock exchange price for shares in the Company of the same class and having
the same conditions already listed at the time of the final determination of the issue price (the stock exchange price shall also be
understood to mean the price of an ADS listed on the NASDAQ multiplied by the number of ADSs representing one share). The
authorization pursuant to (iv) above can following the January 2021 and the February 2021 Offerings still be utilized in an
amount of up to 386,216 new shares (equivalent to 386,216 ADSs).
In addition, shareholders at the general shareholders’ meeting may from time to time cancel, amend or grant new
authorizations to the Management Board to exclude the statutory shareholders’ subscription rights, also for capital increases in
cash for the purpose of issuing shares that are to be placed on the U.S. capital market or with institutional investors from any
jurisdiction by means of ADSs, and in the same context also to cover an over-allotment option granted to the issuing banks.
Our principal shareholders and management own a significant percentage of our ordinary shares and will be able to exert
significant influence over matters subject to shareholder approval.
Members of our Management Board currently beneficially own 18.7% of our ordinary shares (including ordinary shares
represented by ADSs). These shareholders have significant influence over the outcome of all matters requiring shareholder
approval. For example, these shareholders may be able to influence the outcome of elections of members of our Supervisory
Board, amendments of our organizational documents, or approval of any merger, sale of assets, or other major corporate
transactions. This may prevent or discourage unsolicited acquisition proposals or offers for our ordinary shares or ADSs that you
may feel are in your best interest as one of our shareholders. The interests of this group of shareholders may not always coincide
with your interests or the interests of other shareholders, and they may act in a manner that advances their best interests and not
necessarily those of other shareholders, including seeking a premium value for their ordinary shares, which might affect the
prevailing market price for our ADSs.
Holders of our ADSs may not have the same voting rights as the holders of our ordinary shares and may not receive voting
materials in time to be able to exercise your right to vote.
Except as described in this annual report and the deposit agreement relating to our ADSs, holders of the ADSs will not
be able to exercise voting rights attaching to the ordinary shares evidenced by the ADSs on an individual basis. Under the terms
of the deposit agreement, holders of the ADSs appoint the depositary or its nominee as their representative to exercise the voting
rights attaching to the ordinary shares represented by the ADSs. You may not receive voting materials in time to instruct the
depositary to vote, and it is possible that you, or persons who hold their ADSs through brokers, dealers or other third parties, will
not have the opportunity to exercise a right to vote.
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You may not receive distributions on our ordinary shares represented by the ADSs or any value for them.
Under the terms of the deposit agreement relating to our ADSs, the depositary for the ADSs has agreed to pay to you the
cash dividends, if any, or other distributions it or the custodian receives on our ordinary shares or other deposited securities after
deducting its fees and expenses. You will receive these distributions in proportion to the number of our ordinary shares your
ADSs represent. However, in accordance with the limitations set forth in the deposit agreement, it may be unlawful or impractical
to make a distribution available to holders of ADSs. In addition, with respect to distributions of rights to subscribe for additional
ordinary shares or ADSs, such distributions will only be made if we request such rights be made available to holders of the
ADSs. We have no obligation to take any other action to permit the distribution of the ADSs, ordinary shares, rights or anything
else to holders of the ADSs. This means that you may not receive the distributions we make on our ordinary shares or any value
from them. These restrictions may have a material adverse effect on the value of your ADSs.
We have no present intention to pay dividends on our ordinary shares in the foreseeable future and, consequently, your only
opportunity to achieve a return on your investment during that time is if the price of our ADSs appreciates.
We have no present intention to pay dividends on our ordinary shares in the foreseeable future. Any recommendation by
our Management and Supervisory Boards to pay dividends will depend on many factors, including our financial condition, results
of operations, legal requirements and other factors. Accordingly, if the price of our ADSs declines in the foreseeable future, you
will incur a loss on your investment, without the likelihood that this loss will be offset in part or at all by potential future cash
dividends.
As a foreign private issuer, we are exempt from a number of rules under the U.S. securities laws and are permitted to file less
information with the SEC than U.S. companies. This may limit the information available to holders of ADSs.
We are a “foreign private issuer,” as defined in the SEC rules and regulations, and, consequently, we are not subject to
all of the disclosure requirements applicable to companies organized within the United States. For example, we are exempt from
certain rules under the Securities Exchange Act of 1934, as amended, or the Exchange Act, that regulate disclosure obligations
and procedural requirements related to the solicitation of proxies, consents or authorizations applicable to a security registered
under the Exchange Act. In addition, members of our Management Board and Supervisory Board and our principal shareholders
are exempt from the reporting and “short-swing” profit recovery provisions of Section 16 of the Exchange Act and related rules
with respect to their purchases and sales of our securities. Moreover, we are not required to file periodic reports and financial
statements with the SEC as frequently or as promptly as U.S. public companies. Accordingly, there may be less publicly-
available information concerning our Company than there is for U.S. public companies.
As a foreign private issuer, we are required to file an annual report on Form 20-F within four months of the close of
each year ended December 31 and furnish reports on Form 6-K relating to certain material events promptly after we publicly
announce these events. In addition, under the NASDAQ Listing Rules, we must submit to the SEC a Form 6-K that includes
interim earnings reports on a semi-annual basis. Although we intend to issue quarterly financial information, because of the
above exemptions for foreign private issuers, we are not required to do so and may not provide quarterly information if we are
not able to do so. Therefore, holders of our ADSs may not be afforded the same protections or information generally available to
investors holding shares in public companies organized in the United States.
As a foreign private issuer, we are not subject to certain NASDAQ corporate governance rules applicable to U.S. listed
companies.
We rely on provisions in the NASDAQ Listing Rules that permit us to follow our home country corporate governance
practices with regard to certain aspects of corporate governance. This allows us to follow German corporate law and the German
Corporate Governance Code, which differ in significant respects from the corporate governance requirements applicable to U.S.
companies listed on the NASDAQ.
In accordance with our NASDAQ listing, our Audit Committee is required to comply with or satisfy an exemption from
the provisions of Section 301 of the Sarbanes-Oxley Act and Rule 10A-3 of the Exchange Act, both of which are also applicable
to listed U.S. companies. Because we are a foreign private issuer, however, we generally are permitted to follow home country
practice in lieu of the corporate governance standards provided in the NASDAQ
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Listing Rules. In particular, we are not required to comply with the requirements that the members of our Audit Committee
satisfy financial literacy standards, that a majority of the members of our Supervisory Board and all members of our Audit
Committee and Compensation and Nomination Committee must be independent, and that our Audit Committee and
Compensation and Nomination Committee adopt written charters. In addition, we are not required to comply with requirements
for a specific quorum or executive sessions. If some investors find the ADSs less attractive as a result of these differences, there
may be a less active trading market for the ADSs and the price of the ADSs may be more volatile. See “Item 16.G Corporate
Governance.”
We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.
As a foreign private issuer, we are not required to comply with all the periodic disclosure and current reporting
requirements of the Exchange Act and related rules and regulations. The determination of foreign private issuer status is made
annually on the last business day of an issuer’s most recently completed second fiscal quarter. Accordingly, we will next make a
determination with respect to our foreign private issuer status on June 30, 2021. There is a risk that we will lose our foreign
private issuer status in the future.
We would lose our foreign private issuer status if, for example, more than 50% of our assets are located in the United
States and we continue to fail to meet additional requirements necessary to maintain our foreign private issuer status. As of
December 31, 2020, approximately 11% of our assets were located in the United States, although this may increase as we expand
our operations in the United States. The regulatory and compliance costs to us under U.S. securities laws as a U.S. domestic
issuer may be significantly greater than the costs we incur as a foreign private issuer. If we are not a foreign private issuer, we
will be required to file periodic reports and registration statements on U.S. domestic issuer forms with the SEC, which are more
detailed and extensive in certain respects than the forms available to a foreign private issuer. We would be required under current
SEC rules to prepare our financial statements in accordance with U.S. GAAP and modify certain of our policies to comply with
corporate governance practices associated with U.S. domestic issuers. Such conversion and modifications would involve
additional costs. In addition, we may lose our ability to rely upon exemptions from certain corporate governance requirements of
the NASDAQ Listing Rules that are available to foreign private issuers such as the ones described above and exemptions from
procedural requirements related to the solicitation of proxies.
We incur significant increased costs as a result of operating as a company whose ADSs are publicly traded in the United
States, and our management is required to devote substantial time to new compliance initiatives.
As a company whose ADSs commenced trading in the United States in October 2013, we incur significant legal,
accounting, insurance and other expenses that we did not incur before going public. In addition, the Sarbanes-Oxley Act, the
Dodd-Frank Wall Street Reform and Consumer Protection Act and related rules implemented by the SEC and the NASDAQ have
imposed various requirements on public companies, including requiring establishment and maintenance of effective disclosure
and financial controls. Our management and other personnel must devote a substantial amount of time to these compliance
initiatives. Moreover, these rules and regulations increase our legal and financial compliance costs and make some activities
more time-consuming and costly. For example, these rules and regulations have made it more difficult and more expensive for us
to obtain director and officer liability insurance, and we may be required to incur substantial costs to maintain the same or similar
coverage. These laws and regulations could also make it more difficult and expensive for us to attract and retain qualified persons
to serve on our Supervisory Board or its committees or on our Management Board. Furthermore, if we are unable to satisfy our
obligations as a public company, we could be subject to delisting of the ADSs, fines, sanctions and other regulatory action and
potentially civil litigation.
U.S. investors may have difficulty enforcing civil liabilities against our Company or members of our Management and
Supervisory Boards.
The members of our Management and Supervisory Boards are non-residents of the United States, and all or a substantial
portion of the assets of such persons are located outside the United States. As a result, it may not be possible, or may be very
difficult, to serve process on such persons or us in the United States or to enforce judgments obtained in U.S. courts against them
or us based on civil liability provisions of the securities laws of the United States. In addition, awards of punitive damages in
actions brought in the United States or elsewhere may be unenforceable in Germany. An award for monetary damages under the
U.S. securities laws would be considered punitive if it does not seek to
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compensate the claimant for loss or damage suffered and is intended to punish the defendant. The enforceability of any judgment
in Germany will depend on the particular facts of the case as well as the laws and treaties in effect at the time. Litigation in
Germany is also subject to rules of procedure that differ from the U.S. rules, including with respect to the taking and admissibility
of evidence, the conduct of the proceedings and the allocation of costs. Proceedings in Germany would have to be conducted in
the German language, and all documents submitted to the court would, in principle, have to be translated into German. For these
reasons, it may be difficult for a U.S. investor to bring an original action in a German court predicated upon the civil liability
provisions of the U.S. federal securities laws against us and the members of our Management and Supervisory Boards. The
United States and Germany do not currently have a treaty providing for recognition and enforcement of judgments (other than
arbitration awards) in civil and commercial matters, though recognition and enforcement of foreign judgments in Germany is
possible in accordance with applicable German laws.
You may be subject to limitations on the transfer of your ADSs.
Your ADSs are transferable on the books of the depositary. However, the depositary may close its books at any time or
from time to time when it deems doing so expedient in connection with the performance of its duties. The depositary may close
its books from time to time for a number of reasons, including in connection with corporate events such as a rights offering,
during which time the depositary needs to maintain an exact number of ADS holders on its books for a specified period. The
depositary may also close its books in emergencies, and on weekends and public holidays. The depositary may refuse to deliver,
transfer or register transfers of our ADSs generally when our share register or the books of the depositary are closed, or at any
time if we or the depositary thinks that it is advisable to do so because of any requirement of law or of any government or
governmental body, or under any provision of the deposit agreement, or for any other reason in accordance with the terms of the
deposit agreement. As a result, you may be unable to transfer your ADSs when you wish to.
If securities or industry analysts do not publish research or reports about our business, or if they or anyone else gives negative
recommendations regarding our ADSs, the market price for our ADSs and trading volume could decline.
The trading market for our ADSs will be influenced by research or reports that industry or securities analysts publish
about our business. If one or more analysts who cover us downgrade our ADSs, the market price for our ADSs would likely
decline. If other individuals, including short sellers, disseminate negative information regarding our business or our ADSs, the
market price for our ADSs may also decline. If one or more of these analysts cease to cover us or fail to regularly publish reports
on us, we could lose visibility in the financial markets, which, in turn, could cause the market price or trading volume for our
ADSs to decline.
Your rights as a shareholder in a German corporation may differ from your rights as a shareholder in a U.S. corporation.
We are organized as a stock corporation (Aktiengesellschaft) under the laws of Germany. You should be aware that the
rights of shareholders under German law differ in important respects from those of shareholders in a U.S. corporation. These
differences include, in particular:
● Under German law, certain important resolutions, including, for example, capital decreases, measures under the
German Transformation Act (Umwandlungsgesetz), such as mergers, conversions and spin-offs, the issuance of
convertible bonds or bonds with warrants attached and the dissolution of the German stock corporation apart from
insolvency and certain other proceedings, require the vote of a 75% majority of the capital present or represented at
the relevant shareholders’ meeting. Therefore, the holder or holders of a blocking minority of 25% or, depending on
the attendance level at the shareholders’ meeting, the holder or holders of a smaller percentage of the shares in a
German stock corporation may be able to block any such votes, possibly to our detriment or the detriment of our
other shareholders.
● As a general rule under German law, a shareholder has no direct recourse against the members of the management
board or supervisory board of a German stock corporation in the event that it is alleged that they have breached
their duty of loyalty or duty of care to the German stock corporation. Apart from insolvency or other special
circumstances, only the German stock corporation itself has the right to claim damages from members of either
board. A German stock corporation may waive or settle these damages claims only if at least three years have
passed and the shareholders approve the waiver or settlement at the shareholders’ meeting with a simple majority of
the votes cast, provided that a minority holding, in the
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aggregate, 10% or more of the German stock corporation’s share capital does not have its opposition formally noted
in the minutes maintained by a German civil law notary.
For more information, we have provided summaries of relevant German corporation law and of our articles of
association under “Item 6. Directors, Senior Management and Employees—C. Board Practices” and “Item 10. Additional
Information—B. Memorandum and Articles of Association.”
Exchange rate fluctuations may reduce the amount of U.S. dollars you receive in respect of any dividends or other
distributions we may pay in the future in connection with your ADSs.
Under German law, the determination of whether we have been sufficiently profitable to pay dividends is made on the
basis of our unconsolidated annual financial statements prepared under the German Commercial Code (Handelsgesetzbuch) in
accordance with accounting principles generally accepted in Germany. Exchange rate fluctuations may affect the amount in U.S.
dollars that our shareholders receive upon the payment of cash dividends or other distributions we declare and pay in Euros, if
any. Such fluctuations could adversely affect the value of our ADSs and, in turn, the U.S. dollar proceeds that holders receive
from the sale of our ADSs.
In the event we are or become treated as a passive foreign investment company, or PFIC, for U.S. federal income tax
purposes, U.S. holders of our ADSs could be subject to adverse U.S. federal income tax consequences.
In the event we were treated as a PFIC, U.S. holders (as defined in “Item 10. Additional Information—E. Taxation—
U.S. Taxation of ADSs”) of our ADSs could be subject to adverse U.S. federal income tax consequences. These consequences
include the following: (i) if our ADSs are “marketable stock” for purposes of the PFIC rules and a U.S. holder makes a mark-to-
market election with respect to its ADSs, the U.S. holder will be required to include annually in its U.S. federal taxable income an
amount reflecting any year-end increase in the value of its ADSs, (ii) if a U.S. holder does not make a mark-to-market election, it
may incur significant additional U.S. federal income taxes on income resulting from distributions on, or any gain from the
disposition of, our ADSs, as such income generally would be allocated over the U.S. holder’s holding period for its ADSs and
subject to tax at the highest rates of U.S. federal income taxation in effect for such years, with an interest charge then imposed on
the resulting taxes in respect of such income, and (iii) dividends paid by us would not be eligible for reduced individual rates of
U.S. federal income tax. We do not intend to furnish holders with the information necessary to make a “qualified electing fund”
election in lieu of a mark-to-market election. In addition, U.S. holders that own an interest in a PFIC are required to file
additional U.S. federal tax information returns.
A U.S. holder may in certain circumstances mitigate adverse tax consequences of the PFIC rules by filing an election to
treat the PFIC as a qualified electing fund, or a QEF. However, in the event that we are or become a PFIC, we do not intend to
comply with the reporting requirements necessary to permit U.S. holders to elect to treat us as a QEF. See “Item 10.
Additional Information—E. Taxation—Additional United States Federal Income Tax Consequences—PFIC Rules.”
Risks Related to Our Intellectual Property
If we are unable to obtain patent protection for our products or otherwise protect our intellectual property rights, our business
could suffer.
We rely on a combination of patents, trademarks, trade secrets and confidentiality agreements and other contractual
arrangements with our employees, end-users and others to maintain our competitive position. Our success depends, in part, on
our ability to obtain patent protection for or maintain as trade secrets our proprietary products, technologies and inventions and to
maintain the confidentiality of our trade secrets and know-how, operate without infringing upon the proprietary rights of others
and prevent others from infringing upon our business proprietary rights.
Despite our efforts to protect our proprietary rights, it is possible that competitors or other unauthorized third parties
may obtain, copy, use or disclose our technologies, inventions, processes or improvements. We cannot assure you that any of our
existing or future patents or other intellectual property rights will be enforceable, will not be challenged, invalidated or
circumvented, or will otherwise provide us with meaningful protection or any competitive advantage. In addition, our pending
patent applications may not be granted, and we may not be able to obtain foreign patents or elect to file applications
corresponding to our U.S. and EU patents. The laws of certain countries outside the United States and
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EU may not provide the same level of patent protection as in the United States and the EU, so even if we assert our patents or
obtain additional patents in countries outside of the United States and the EU, effective enforcement of such patents may not be
available. If our patents do not adequately protect our technology, our competitors may be able to offer additive manufacturing
systems or other products similar to ours. Our competitors may also be able to develop similar technology independently or
design around our patents, and we may not be able to detect the unauthorized use of our proprietary technology or take
appropriate steps to prevent such use. Any of the foregoing events would lead to increased competition and lower revenues or
gross margins, which could adversely affect our operating results.
We may not be able to protect our trade secrets and intellectual property.
While some of our technology is licensed under patents belonging to others or is covered by process patents which are
owned or applied for by us, much of our key technology is not protected by patents. Furthermore, patents are jurisdictional in
nature and therefore only protect us in certain markets, rather than globally. In particular, in fast-growing markets such as China
and India, our technology is not protected by patents. We have devoted substantial resources to the development of our
technology, trade secrets, know-how and other unregistered proprietary rights. While we enter into confidentiality and invention
assignment agreements intended to protect such rights, such agreements can be difficult and costly to enforce or may not provide
adequate remedies if violated. Such agreements may be breached and confidential information may be willfully or unintentionally
disclosed, or our competitors or other parties may learn of the information in some other way. Since we cannot legally prevent
one or more other companies from developing similar or identical technology to our unpatented technology, it is likely that, over
time, one or more other companies may be able to replicate our technology, thereby reducing our technological advantages. If we
do not protect our technology or are unable to develop new technology that can be protected by patents or as trade secrets, we
may face increased competition from other companies, which may adversely affect our results of operations.
We have license rights and exclusivity of certain patents and intellectual property and cannot adequately estimate the effects
of their expiration upon the entrance or advancement of competitors into the additive manufacturing industrial market.
We have exclusive and non-exclusive license rights to certain patents that we utilize in the industrial market. Some of
these patents have already expired, and others will expire within the next one to three years. We cannot adequately estimate the
effect that the expiration of these patents will have upon the entrance or advancement of other additive manufacturing
manufacturers into the industrial market. See “Item 4. Information on the Company—B. Business Overview—Intellectual
Property.”
We may be subject to claims alleging patent infringement.
Our products and technology, including the technology that we license from others, may infringe the intellectual
property rights of third parties. Patent applications in the United States and most other countries are confidential for a period of
time until they are published, and the publication of discoveries in scientific or patent literature typically lags actual discoveries
by several months or more. As a result, the nature of claims contained in unpublished patent filings around the world is unknown
to us, and we cannot be certain that we were the first to conceive inventions covered by our patents or patent applications or that
we were the first to file patent applications covering such inventions. Furthermore, it is not possible to know in which countries
patent holders may choose to extend their filings under the Patent Cooperation Treaty or other mechanisms. In addition, we may
be subject to intellectual property infringement claims from individuals, vendors and other companies, including those that are in
the business of asserting patents, but are not commercializing products in the field of 3D printing. Any claims that our products or
processes infringe the intellectual property rights of others, regardless of the merit or resolution of such claims, could cause us to
incur significant costs in responding to, defending and resolving such claims, and may prohibit or otherwise impair our ability to
commercialize new or existing products. Any infringement by us or our licensors of the intellectual property rights of third
parties may have a material adverse effect on our business, financial condition and results of operations.
Third-party claims of intellectual property infringement successfully asserted against us may require us to redesign
infringing technology or enter into costly settlement or license agreements on terms that are unfavorable to us, prevent us from
manufacturing or licensing certain of our products, subject us to injunctions restricting our sale of products and use of infringing
technology, cause severe disruptions to our operations or the markets in which we compete, impose costly damage awards or
require indemnification of our sales agents and end-users. In addition, as a consequence of such claims, we may incur significant
costs in acquiring the necessary third-party intellectual property
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rights for use in our products or developing non-infringing substitute technology. Any of the foregoing developments could
seriously harm our business.
We may incur substantial costs enforcing or acquiring intellectual property rights and defending against third-party claims as
a result of litigation or other proceedings.
In connection with the enforcement of our intellectual property rights, opposing third parties from obtaining patent
rights or disputes related to the validity or alleged infringement of our or third-party intellectual property rights, including patent
rights, we have been and may in the future be subject or party to claims, negotiations or complex, protracted litigation.
Intellectual property disputes and litigation, regardless of merit, can be costly and disruptive to our business operations by
diverting attention and energies of management and key technical personnel, and by increasing our costs of doing business. We
may not prevail in any such dispute or litigation, and an adverse decision in any legal action involving intellectual property rights,
including any such action commenced by us, could limit the scope of our intellectual property rights and the value of the related
technology. While we strive to avoid infringing the intellectual property rights of third parties, we cannot provide any assurances
that we will be able to avoid any infringement claims.
Obtaining and maintaining our patent protection depends on compliance with various procedural, documentary, fee payment
and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated
for non-compliance with these requirements.
Periodic maintenance fees on any issued patent are due to be paid to the U.S. Patent and Trademark Office, or USPTO,
and foreign patent agencies in several stages over the lifetime of the patent. The USPTO and various foreign governmental patent
agencies require compliance with a number of procedural, documentary, fee payment and other similar provisions during the
patent application process. While an inadvertent lapse can in many cases be cured by payment of a late fee or by other means in
accordance with the applicable rules, there are situations in which noncompliance can result in abandonment or lapse of the
patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. Non-compliance
events that could result in abandonment or lapse of a patent or patent application include, but are not limited to, failure to respond
to official actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal
documents. If we or our exclusive licensors fail to maintain the patents and patent applications covering our products and
processes, our competitive position would be adversely affected.
We may be subject to claims that our employees have wrongfully used or disclosed alleged trade secrets of their former
employers.
Certain of our past and present employees were previously employed at other additive manufacturing companies,
including our competitors or potential competitors. Some of these employees executed proprietary rights, non-disclosure and non-
competition agreements in connection with such previous employment. Although we try to ensure that our employees do not use
the proprietary information or know-how of others in their work for us, we may be subject to claims that we or these employees
have used or disclosed intellectual property, including trade secrets or other proprietary information, of any such employee’s
former employer. We are not aware of any threatened or pending claims related to these matters, but in the future litigation may
be necessary to defend against such claims. If we fail in defending any such claims, in addition to paying monetary damages, we
may lose valuable personnel or intellectual property rights. Even if we are successful in defending against such claims, litigation
could result in substantial costs and be a distraction to management. As we expand our operations into the United States and
elsewhere, we may face similar claims with regard to our future employees in these countries.
Certain of our employees and patents are subject to German law.
The majority of our employees work in Germany and are subject to German employment law. Ideas, developments,
discoveries and inventions made by such employees and consultants are subject to the provisions of the German Act on
Employees’ Inventions (Gesetz über Arbeitnehmererfindungen), which regulates the ownership of, and compensation for,
inventions made by employees. We face the risk that disputes can occur between us and our employees or ex- employees
pertaining to alleged non-adherence to the provisions of this act that may be costly to defend and take up our management’s time
and efforts whether we prevail or fail in such dispute. In addition, under the German Act on Employees’ Inventions, certain
employees retained rights to patents they invented or co-invented prior to 2009. Although most of these employees have
subsequently assigned their interest in these patents to us, there is a risk
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that the compensation we provided to them may be deemed to be insufficient and we may be required under German law to
increase the compensation due to such employees for the use of the patents. In those cases where employees have not assigned
their interests to us, we may need to pay compensation for the use of those patents. If we are required to pay additional
compensation or face other disputes under the German Act on Employees’ Inventions, our results of operations could be
adversely affected.
If we fail to comply with our obligations under our intellectual property-related agreements or if we receive an adverse court
decision in a lawsuit regarding these agreements, we could lose rights that are important to our business or be subject to
restrictions on the conduct of our business.
We have license and co-ownership agreements with respect to certain intellectual property that is important to our
business with both Z Corp and The ExOne Company, or ExOne, respectively, that impose restrictions on our use of certain
intellectual property. We are party to other intellectual property-related agreements that also are important to our business.
Disputes may arise between the counterparties to these agreements and us that could result in termination of these agreements,
costly litigation or arbitration that diverts management’s attention and company resources, regulatory review or restrictions on
the conduct of our business. If we fail to comply with our obligations under our intellectual property-related agreements or
receive an adverse court decision in a lawsuit regarding these agreements, the counterparties may have the right to terminate
these agreements or sue us for damages or equitable remedies, including injunctive relief. Termination of these agreements, the
reduction or elimination of our rights under these agreements, or the imposition of restrictions under these agreements may result
in our having to negotiate new or reinstated licenses with less favorable terms, or to cease commercialization of licensed
technology and products. This could materially adversely affect our business. In March 2018, ExOne GmbH, a subsidiary of
ExOne, notified us of their intent not to pay their annual license fees under an existing intellectual property-related agreement and
asserted their rights to claim damages pursuant to an alleged material breach of the agreement. While we dispute these claims, the
matter could result in one or more of the risks discussed herein.
Certain technologies and patents have been developed with partners and we may face restrictions on this jointly-developed
intellectual property.
We have entered into cooperation agreements with a number of industrial and commercial partners, as well as university
partners. We have, in some cases individually and in other cases along with our partners, filed for patent protection for a number
of technologies developed under these agreements and may in the future file for further intellectual property protection and/or
seek to commercialize such technologies. Under some of these agreements, certain intellectual property developed by us and the
relevant partner may be subject to joint ownership by us and the partner and our commercial use of such intellectual property may
be restricted, or may require written consent from, or a separate agreement with, the partner. In other cases, we may not have any
rights to use intellectual property solely developed and owned by the partner. If we cannot obtain commercial use rights for such
jointly-owned intellectual property or partner-owned intellectual property, our future product development and commercialization
plans may be adversely affected.
ITEM 4. INFORMATION ON THE COMPANY
A. HISTORY AND DEVELOPMENT OF THE COMPANY
voxeljet AG is a stock corporation organized under the laws of Germany. The legal predecessor of our Company was
founded as Generis GmbH on May 5, 1999. On January 7, 2004, Generis GmbH changed its name to Voxeljet Technology
GmbH.
On July 2, 2013, the shareholders of Voxeljet Technology GmbH incorporated VXLT 2013 AG, which was registered in
the commercial register of the local court (Amtsgericht) of Augsburg, Germany on July 11, 2013 under number HRB 27999.
Voxeljet Technology GmbH was subsequently merged by way of merger through assumption into VXLT 2013 AG on
July 29, 2013 effective as of September 12, 2013 upon registration of the merger in the commercial register of the surviving
entity, VXLT 2013 AG. The merger had retroactive effect as of January 1, 2013. As part of the merger, VXLT 2013 AG changed
its name to voxeljet AG effective upon the registration of the merger in the commercial register. By
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way of merger through assumption, upon effectiveness, voxeljet AG, as the surviving entity, took over all assets and liabilities of
Voxeljet Technology GmbH by universal assumption and accession under German mandatory law, and Voxeljet
Technology GmbH ceased to exist.
On October 23, 2013, we sold 5,600,000 ADSs in our initial public offering at a price of $13.00 per ADS, thereby
raising $72.8 million (before underwriting discounts and costs). The ADSs we sold in the initial public offering represented new
shares issued in a capital increase resolved by our shareholders for purposes of the initial public offering on October 11, 2013.
On April 16, 2014, we completed a follow-on offering of 3,000,000 ADSs at a public offering price of $15.00 per ADS.
Net proceeds from the follow-on offering to the Company were approximately $41.4 million. On April 24, 2014, the underwriters
in the follow-on offering purchased 450,000 ADSs from certain of the Company’s shareholders (the “Selling Shareholders”)
pursuant to the overallotment option they were granted in the follow-on offering. The Company did not receive any proceeds
from the sale of ADSs by the Selling Shareholders.
On October 18, 2018, we issued 972,000 ordinary shares, equivalent to 4,860,000 ADSs, at an offering price of $2.57
per ADS (the “Public Offering Price”). The Company received net proceeds of approximately $10.6 million. Members of our
Management Board, who are also significant shareholders, purchased an aggregate number of 233,462 ADSs in this offering at
the Public Offering Price. On November 8, 2018, we closed the over-allotment option in which we issued additional
144,000 ordinary shares, equivalent to 720,000 ADSs. The Company received net proceeds of approximately $1.6 million.
On January 25, 2021, we issued 621,170 ordinary shares, equivalent to an equal number of ADSs, at an offering price of
$16.16 per ADS in a registered direct offering priced at-the-market under the NASDAQ Listing Rules. The Company received
gross proceeds of approximately $10 million (€ 8.3 million) before deducting fees and expenses.
On February 17, 2021, we issued 443,414 ordinary shares, equivalent to an equal number of ADSs, at an offering price
of $ 26.95 per ADS in a registered direct offering priced at-the-market under the NASDAQ Listing Rules. The Company received
gross proceeds of approximately $12 million (€ 9.9 million) before deducting fees and expenses.
Our website is www.voxeljet.de. This website address is included in this annual report as an inactive textual reference
only. The information and other content appearing on our website are not part of this annual report. Our principal executive
offices are located at Paul-Lenz-Straße 1a, 86316 Friedberg, Germany, and our telephone number is +49 821 7483 100. Our agent
for service of process in the United States is Corporation Service Company, located at 1090 Vermont Avenue N.W., Washington,
D.C. 20005, telephone number (800) 927-9800.
Capital Expenditures
Capital expenditures are funds used by the Company to acquire or upgrade physical or intangible assets such as
property, plants, buildings, equipment or software. Our capital expenditures amounted to €0.1 million, €1.1 million and
€3.8 million, for the years ended December 31, 2020, 2019, and 2018, respectively. In 2020 our capital expenditures mainly
consisted of upgrades related to our ERP-system.
In 2019 the capital expenditures mainly comprised the final payment for the new office building and production facility
located in Friedberg, Germany, which were completed in October 2017, as well as upgrades of our ERP-System. In 2018 the
capital expenditures mainly comprised 3D printers to be used in our Services segment.
B. BUSINESS OVERVIEW
Our Company
We are a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and
commercial customers. Our 3D printers employ a powder binding, additive manufacturing technology to produce parts using
various material sets, which consist of particulate materials and proprietary chemical binding agents. We offer our customers the
highest volumetric output rate in the industry due to the combination of our large build boxes and print speeds. We provide our
3D printers and on-demand parts services to industrial and commercial customers serving the automotive, aerospace, art and
architecture, engineering and consumer product end markets.
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We currently offer eight different 3D printer platforms, with build boxes that range from 300 × 200 × 150 millimeters to
4,000 × 2,000 × 1,000 millimeters and various print speeds, which produce volumetric output rates ranging from 0.4 liters per
hour to 156.0 liters per hour. All of our platforms support our commercialized material sets, sand and plastics, along with their
respective proprietary chemical binding agents. We develop our material sets according to the needs of our industrial and
commercial customers, and we are currently in varying stages of developing new material sets, including shell molding and
chromite sands, PMMA-based plastics, ceramics, silicon carbide, tungsten carbide and cement.
Our business is divided into two principal segments: Systems and Services.
In our Systems segment, we focus on the sale, production and development of 3D printers. In addition, we sell
refurbished 3D printers which were produced for and used in our Services segment and provide printers to customers under
operating lease agreements. We also provide consumables, including particulate materials and proprietary chemical binding
agents, maintenance contracts and spare parts to our customers.
In our Services segment, we print on-demand parts for our customers. We operate service centers in Germany, the
United States and China. At our service centers, we create parts, molds, cores and models based on designs produced using 3D
computer-aided design, or CAD, software. Furthermore, there are customers who order casted parts directly from us. In those
cases, we provide molds or models to external suppliers who then cast the parts for our customers. We believe our service center
in Germany is one of the largest additive manufacturing service centers in Europe.
We sold our first 3D printer in 2002 and commenced our on-demand parts services business in 2003. As of
December 31, 2020, we had an installed base of 199 printers worldwide, and we operated service centers in Germany, the United
States and China. Our service centers in Germany and the United States each have approximately 43,000 square feet of
production space. Our service center in China has approximately 26,000 square feet and approximately 15,000 square feet of
production space, respectively.
Our Additive Manufacturing Technology
Our printers build or print parts from digital designs produced using 3D CAD software by successively depositing thin
layers of particulate materials. A printhead passes over each layer and deposits our proprietary chemical binding agent in the
selected areas where the finished product will be created.
The following is a graphical depiction illustrating our manufacturing process:
Our 3D Printers
We currently produce eight 3D printer platforms. Our 3D printers consist of a build box that includes a machine
platform and a controller. Our 3D printers differ based on build box size and print speeds, but all utilize our technology and can
support each of our existing material sets and each of our material sets that are currently in development. As of December 31,
2020, we had an installed base of 199 printers worldwide, which includes (i) printers in our service centers and (ii) printers which
are no longer commercially available, but which we believe our customers continue to use.
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The following table is a comparison of our 3D printer platforms:
Platform
Build Box (millimeters)
External Dimensions
(millimeters)
Print Resolution (dots per inch)
Layer Thickness (micrometers)
Volumetric Output Rate (liters per
hour)
Date of Introduction
Platform
Build Box (millimeters)
External Dimensions
(millimeters)
Print Resolution (dots per inch)
Layer Thickness (micrometers)
Volumetric Output Rate (liters per
hour)
Date of Introduction
Materials
VX4000
4,000 X 2,000 X 1,000
VX2000
2,000 X 1,000 X 1,000
VX1300 X
1,300 X 600 X 500
VX1000
1,000 X 600 X 500
20,000 X 7,800 X 4,000
5,000 X 3,000 X 2,300
2,600 X 4,250 X 5,250
3,000 X 2,800 X 2,150
200
120 - 300
123
2011
200, 600
100 - 400
47
2013
200
100 - 500
156
2019
200, 600
100 - 300
23
2011
VXC800
850 X 500 X 8
VX500
500 X 400 X 300
VX200
300 X 200 X 150
VX200 HSS
320 X 170 X 200
5,000 X 2,800 X 2,500
1,800 X 1,800 X 1,700
2,100 X 1,500 X 1,400
1700 X 900 X 1500
200
120 - 300
18
2012
200, 600
80 - 150
3
2007
200, 600
150
0.7
2012
360
80 - 100
0.39 - 0.49
2017
Our commercialized material sets are comprised of sand and plastic particulate materials and their respective proprietary
chemical binding agents. We believe these material sets are well suited for our commercial and industrial customers because
these materials either (i) are commonly used in their existing manufacturing processes or (ii) match or exceed desired
performance characteristics of existing materials being utilized in their manufacturing processes. Our sand material set offerings
include four types of sands: (i) silica, (ii) kerphalite, (iii) zirconium oxide and (iv) chromite, with furan, inorganic, shell molding
and phenol resins as proprietary chemical binding agents. Our plastics material set offering is based on Poly(methyl
methacrylate), or PMMA, and Polypor B and C as the proprietary chemical binding agentsas well as Polyamide.
We are currently in varying stages of development of new material sets which include the following particulate
materials:
●
●
●
●
●
different types of sands;
different types of ceramics;
silicon carbide and other hard metals;
cement;
thermoplastic polyurethane
On-demand Parts Services
At our service centers, we create parts, molds, cores and models for a variety of industrial and commercial customers
based on designs produced using 3D CAD software. We receive orders directly from customers and indirectly through our sales
agents.
Our service centers in Germany and the United States each have approximately 43,000 square feet of production space.
Our Chinese service center is located in a facility with more than 78,000 square feet of production space, storage and office
space.
We help our customers move from the design stage to the production stage by assisting them in evaluating the optimal
design and material sets for their production needs. After printing parts, we employ a thorough cleaning,
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finishing, quality control review and packaging and shipping process to ensure the customer receives high-quality and
immediately-usable parts. Based on our capacity utilization, the lead time required for us to print a part for a customer ranges
from three to 21 days and is typically five business days. Due to the size of the printers’ build boxes utilized in our German
service center, specifically the VX4000 printer, we are able to print more parts simultaneously on one printer than anyone else in
the industry, resulting in cost-effective and quick turnaround times for our customers’ print jobs and increased revenue and
profitability for us.
Our technicians also train customers on operating, maintaining and troubleshooting our 3D printers through hands-on
experience at our German service center. Additionally, our technicians provide field support to our customers as needed. After
the warranty period, we offer maintenance contracts to our customers. Those contracts include scheduled service visits where we
maintain and clean the 3D printers as well as on demand visits and troubleshooting, in case of sudden problems.
Our Customers
We are in the market for industrial part production utilizing additive manufacturing and are one of the few providers of additive
manufacturing solutions to industrial and commercial customers, including the foundry, automotive, heavy equipment, power
fluid handling, aerospace and consumer product industries. Our mission is to re-define additive mass production. We believe we
have a reputation for providing high-quality systems and services in the marketplace with strong relationships with a number of
leading multinational customers. Out of our broad customer portfolio we deal with customers including Daimler AG, BMW AG,
Ford Motor Company, Volkswagen AG, Porsche SE, Evonik Industries AG as well as with other key users of additive
manufacturing, and technical universities such as the ETH Zürich, and the Vaal University of Technology. Purchasers of our
printers also include original equipment manufacturers, government agencies and independent service bureaus that provide rapid
prototyping and manufacturing services to their customers. Many of our customers have been customers for over a decade. We
also collaborate on research and development projects with a number of our automotive and technical university customers,
including Daimler AG, BMW AG, Ford Motor Company, Volkswagen AG and the Technical University of Munich. As our
customers integrate additive manufacturing into their production processes, they typically continue to utilize our on-demand parts
service center for a variety of reasons, including for incremental capacity and for parts printed from different material sets.
We conduct a significant portion of our business with a limited number of customers. Our top five customers
represented 28%, 21% and 20% of total revenues for the years ended December 31, 2020, 2019, and 2018, respectively. These
customers primarily purchased 3D printers, while one of the top five customers primarily ordered printed parts. In the year ended
December 31, 2020, there were no customers who accounted for more than 10% of our revenues. Sales of on-demand parts and
consumables tend to be from repeat customers that may utilize the capability of our on-demand parts service centers for one
month or longer. Sales of 3D printers are low volume and generate significant revenues, but the same customers do not
necessarily buy printers in each period. Timing of customer purchases is dependent on the customer’s capital budgeting cycle,
which may vary from period to period. The nature of the revenues from 3D printers does not leave us dependent upon a single or
a limited number of customers. Rather, the timing of the sales can have a material effect on our period-to-period financial results.
Sales and Marketing
We sell our 3D printers and related consumables both through our direct sales force and with the assistance of our
network of more than 20 third-party sales agents globally. Our sales organization, including our dedicated sales, service and
application engineers, is responsible for worldwide sales of our 3D printers and on-demand parts services, as well as for the
management and coordination of our growing sales agent network. Our direct sales force focuses primarily on customers in
Europe, North America and Asia Pacific, while our sales agents are responsible for facilitating sales in other areas of the world
where we do not operate directly. We have entered into partnership agreements with each of our sales agents, which grant the
sales agent the right to market our products in a specified territory on either an exclusive or non-exclusive basis, depending on the
sales agent; however, all sales contracts for our products are entered into between us and our customers. Certain of these sales
agents also provide maintenance services to customers in their specified territories. Our application engineers provide
professional services through pre-sales support and assist existing customers so that they can take advantage of our latest
consumables and techniques to improve part quality and machine productivity. This group also leverages our customer contacts
to help identify new application opportunities that utilize our proprietary processes. As of December 31, 2020, our worldwide
sales staff for systems and parts consisted of 38
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employees. We also expect that our subsidiaries in Europe, North America and Asia Pacific will improve market access through
local market development and allow the targeting of specific customers.
Educating our customers and raising awareness in our target markets about the many uses and benefits of our 3D
printing technology is an important part of our sales process. We believe that customers who experience the efficiency gains,
decreased lead times, increased design flexibility and reduced costs of 3D printing as compared to subtractive manufacturing are
more likely to purchase our 3D printers and/or utilize our on-demand parts services. We encourage potential purchasers of our 3D
printers to first utilize our on-demand parts services so that they can experience firsthand the benefits of our 3D printing
technology. We currently market our brand and our services at industry conferences, trade shows, and across various forms of
digital and traditional media and plan to increasingly expand our marketing efforts in North America in conjunction with our
geographic expansion to that region.
Services and Warranty
Our fully-trained service technicians perform installations of our 3D printers. For the first year following the purchase of
one of our 3D printers, we provide complimentary service and support under the statutory warranty. We also offer service
contracts under which our customers can purchase maintenance and services beyond the one-year term of the warranty. These
service contracts contain varying degrees of support services and are priced accordingly. Finally, we sell spare parts which we
maintain in stock to assist in providing service expeditiously to our customers. Historically, we have not experienced a high level
of warranty claims.
Manufacturing and Suppliers
Manufacturing
We assemble our 3D printers at our facility in Friedberg, Germany as well as some platforms in our facility in Suzhou,
China, close to Shanghai, using components sourced from distributors of standard electrical or mechanical parts, as well as from
manufacturers which design custom parts tailored to the proprietary designs of our machines. We periodically review the quality
and performance of our distributors and manufacturers. Upon completion of the assembly of our 3D printers, we perform tests to
ensure that the printer is functioning properly before the system is shipped and again after the system is installed at the
customer’s site.
To provide customers with assurance regarding the quality and consistency of our systems, we obtained ISO 9001:2015
certification for our facility in Germany in 2017, in 2019 for our facility in Canton, USA and in 2020 for our facility in China.
ISO 9001:2015 provides a structure for a quality management system that strives for customer satisfaction, consistent quality and
efficiency. In addition, there are internal benefits such as improved customer satisfaction, interdepartmental communications,
work processes and customer-and-supplier partnerships. The ISO 9000 family of standards relates to quality management
systems and is designed to help organizations ensure that they meet the needs of customers and other stakeholders.
Inventory and Suppliers
We maintain an inventory of certain parts to facilitate the timely assembly of products required by our production plan.
While most components used in our 3D printers are available from multiple suppliers, certain of these components are only
available from limited sources. We consider our limited-source suppliers, including the suppliers of our printheads, to be reliable;
however, the loss of one of these suppliers could result in a delay in our operations. This type of delay could require us to find
and re-qualify components supplied by one or more new vendors. Although we consider our relationships with our suppliers to be
good, we continue to develop risk management plans for these critical suppliers. Regarding inventory we defined targets for raw
materials as well as for work in progress. The strategy includes meeting customer expectation and demand for spare parts, wear
parts as well as 3D printers with an attractive lead time.
Research and Development
We have an ongoing research and development program to develop new 3D printers and material sets and to improve
and expand the capabilities of our existing 3D printers and related material sets. As of December 31, 2020, we had various active
research and development projects in different stages of completion. All research and development
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costs are charged to expense as incurred, as the criteria set forth in IAS 38 for capitalizing such costs have not yet been met. Our
development efforts are augmented by development arrangements with research institutions, customers and suppliers of material
and hardware, among others.
In addition to our internally-developed technology platforms and the related software, we have licensed the rights to
intellectual property developed by third parties through licensing agreements that may obligate us to pay a license fee or royalty,
typically based upon a dollar amount per unit or a percentage of the revenues generated by such products.
Our research and development expenses were € 6.5 million, € 7.2 million, and € 6.3 million for the years ended
December 31, 2020, 2019, and 2018, respectively.
A significant portion of our research and development expenditures has been focused upon developing proprietary
systems, processes and materials, including:
●
●
●
●
●
●
the qualification of new print materials, including phenolic resins and inorganic binders, PMMA-based and other
plastics, ceramics, silicon carbide and cement;
the development of new or enhanced proprietary chemical binding agents;
the development of new or enhanced binding mechanisms;
the mechanics of spreading powders in a build box;
the transfer of digital data through a series of software links to drive a printhead; and
synchronizing all of the above to print ever-increasing volumes of material per unit time.
We also regularly apply for research and development grants and subsidies under European and German grant rules for
small and medium enterprises. The majority of these grants and subsidies are non-refundable. We have received grants and
subsidies from different authorities, including the German Federal Ministry of Economics and Technology (Bundesministerium
für Wirtschaft und Technologie), the Bavarian Research Foundation (Bayerische Forschungsstiftung) and the German Federal
Foundation Environment (Deutsche Bundesstiftung Umwelt).
We expect to continue to invest significantly in research and development in the future.
Intellectual Property
We consider our proprietary technology to be important to the development, manufacture, and sale of our products and
seek to protect such technology through a combination of patents, trademarks, and trade secrets. We also have in place
confidentiality agreements and other contractual arrangements with our employees, consultants, customers and others.
Patents. As of December 31, 2020, we owned or co-owned 69 issued U.S. patents and 32 pending U.S. patent
applications. In addition, we own or co-own patent rights in Europe, Asia, Brazil and Canada. In total, as of December 31, 2020
our patent portfolio consisted of over 425 patents and patent applications. Our currently issued patents will expire at different
times in the future, with the earliest expiring in 2021 and the latest expiring in 2036. Our currently pending applications will
generally remain in effect for 20 years from the date of the initial applications.
These patent assets are complemented by our marketing, business development and applications know-how and our
ongoing research and development efforts. Nevertheless, there can be no assurance that our patents, licenses or other intellectual
property rights will afford us a meaningful competitive advantage in the fast-paced and innovative field in which we operate.
Trade Secrets. As is true in our industry generally, the development of our products, processes and materials has
involved a considerable amount of experience, manufacturing and processing know-how and research and development
techniques. We protect our proprietary processes and technologies with a blend of patent protection and
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trade secret protection. As part of our overall intellectual property strategy, we protect our non-patented proprietary knowledge as
trade secrets through confidentiality controls and through the use of nondisclosure and confidentiality agreements.
Licenses. We are a party to various licenses and other arrangements that allow us to practice and improve our
technology under a range of patents, patent applications and other intellectual property, including license agreements with
ExOne, 3D Systems (Z Corp), Bego Medical GmbH, or Bego, and Evonik IP GmbH each described in more detail below.
In 2003, we entered into an agreement with Extrude Hone GmbH (now doing business as ExOne) related to patents and
technologies using certain binders, methods and equipment for 3-D printing processes, including sand-based 3-D printing. Under
the terms of this agreement, ExOne purchased an ownership share in certain patents and related technologies from us. Further, we
granted ExOne certain rights to exploit these technologies and ExOne entered into an ongoing obligation to pay royalties to us.
The parties also agreed to share revenues generated from any licenses granted by ExOne. The agreement states that we are
permitted to use machines and provide services relating to these technologies, but not to make or sell machines utilizing these
technologies without ExOne's consent, although ExOne has an obligation to consent if the machines do not compete with
products engineered, manufactured or sold by ExOne or its affiliates. If we intend to sell any of the intellectual property that is
the subject of this agreement, ExOne has the option to acquire it at fair market value. Similarly, ExOne has a right of first refusal
regarding the purchase of any developments and improvements we make to such intellectual property and a set of six patents
(including one U.S. patent) related to wax technologies, as well as the right to negotiate to receive a license to such developments
and improvements. We later signed an amendment with ExOne specifically allowing us to use the subject patents for our 3D
printers working with plastics in exchange for the payment of a license fee. The obligation of both parties to pay royalties under
this agreement extends until the expiration of the last issued patent included in the list of transferred patent assets.
While the agreement states that our rights are limited regarding use of certain binders and sand-based casting methods in
3D printers with ExOne, we believe these limitations will not materially impact the growth of our business, as we are able to
continue certain activities in compliance with the agreement and we have developed processes which do not rely upon the subject
patent portfolio, associated agreements and related technologies. If needed, we will take steps to protect our ability to continue
such activities including by challenging the validity or enforceability of certain provisions of the agreement. In March 2018,
ExOne GmbH, a subsidiary of ExOne, notified us of their intent not to pay their annual license fees under this agreement and
asserted their rights to claim damages pursuant to an alleged material breach of the agreement. We are vigorously disputing these
claims, however, the outcome of this matter is uncertain.
In 2004, we entered into a non-exclusive license and sublicense agreement with Z Corp (acquired by 3D Systems in
2012), which allows us to make, use and sell 3D printing equipment for the fabrication of plastic parts utilizing organic powder
binders under certain Z Corp and Massachusetts Institute of Technology patents. In return for these rights, we agreed to pay an
initial license fee and ongoing tiered royalties. We later amended this agreement, expanding our permitted use of the licensed
binder-jetting technology to include inorganic powder, ceramics, and concrete printing in a process that does not require post
processing other than oven baking parts or liquid infiltration, but restricting us to monochromatic color configurations. The
agreement extends until the expiration of the licensed patents; however, the parties may terminate the agreement under certain
conditions.
In 2012, we entered into a cross licensing agreement with Bego pursuant to which each party granted to the other certain
exclusive rights regarding each parties’ patents and applications directed to continuous additive manufacturing. We granted to
Bego an exclusive license to market patent covered products in the field of laser sintering and other related technologies, while
Bego granted to us an exclusive license to market patent covered products in the field of binder-jetting technology (other than for
dental applications). We also agreed to pay to Bego a royalty and to pay a participation fee to Bego in the event that we grant any
sublicenses to the technology (which, to date, we have not done). This agreement automatically terminates upon the expiration of
the last patent subject to the agreement.
In March 2015, we entered into a non-exclusive technology license agreement with Evonik IP GmbH, in which voxeljet
acquired a license for a 3D printing process using polymeric materials that we believe offers distinct speed and cost benefits. This
powder bed fusion process allows for production of parts with thermoplastic properties. In return for these rights, we agreed to
pay an upfront payment and ongoing royalties for each royalty period, subject to the payment
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of a fixed minimum annual royalty if higher. The agreement shall remain in force until the expiration of the last to expire patent
of the licensed patents; however, either party may terminate the agreement under certain conditions.
In addition to the foregoing licenses, we have also licensed additional patents that we believe can be used to expand our
material set offerings.
Trademarks. We have secured word and figurative trademarks for voxeljet in Europe and have international (IR)
applications covering the United States, Russia, Mexico and a number of countries in Asia.
Competition
Our principal competitors consist of other developers of 3D printing systems and providers of 3D printing services.
These companies use a variety of additive manufacturing technologies, including:
●
●
●
●
●
fused deposition modeling;
binder jetting;
inkjet;
selective laser sintering; and
stereolithography.
Some of the companies that have developed and use one or more additive manufacturing technologies to compete with
us include: ExOne, 3D Systems Corporation, Stratasys, Ltd., EOS GmbH and HP Inc.
These technologies, which compete for market share in the additive manufacturing industry, possess various competitive
advantages and disadvantages relative to one another within key categories, including resolution, accuracy, surface quality,
variety and properties of the materials they use and produce, capacity, speed, color, transparency and the ability to print multiple
materials. Due to these multiple categories, we believe end-users usually make technology purchasing decisions based on the
characteristics that they value most for a particular application. The competitive environment that has developed is therefore
intense and dynamic, as market players often position their technologies to capture multiple vertical markets.
Despite the challenging competitive landscape, we believe that we have several competitive advantages, including the
size of our build platforms, our printing speeds, the volumetric output rate of our 3D printers and the variety of qualified material
sets that we offer to commercial and industrial customers.
We also compete with established subtractive manufacturers in the industrial products market. However, we believe that
we are well positioned to expand our share of the industrial products market as additive manufacturing gains recognition and
increases its cost effectiveness. As our technologies improve and our unit cost of production decreases, we expect to be able to
better compete with subtractive manufacturing on a wide range of products, thereby expanding our addressable market.
Seasonality
Historically, our results of operations have been subject to seasonal factors. Purchases of our 3D printers often follow a
seasonal pattern owing to the capital budgeting cycles of our customers. Generally, 3D printer sales are higher in our second and
fourth fiscal quarters than in our first and third fiscal quarters. Sales in our Services segment generally are not affected by
seasonality. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—Our revenues and
operating results may fluctuate.”
Regulatory/Environmental Matters
We are subject to environmental, health and safety regulations in Germany, as well as in the countries where our
products and materials are used or sold.
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Germany
Legal Requirements for Manufacturing Sites
Emissions Control Law. We do require a permit granted under the Federal Emissions Control Act (Bundes-
Immissionsschutzgesetz, or BImSchG), as we use resins (Harze) to create models for customers. Therefore, the permit was
granted for the buildings “Halle 1” and “Halle 2” to us in December 2013 by the District Administration (Landratsamt) of
Aichach-Friedberg. The permit was granted under the condition (Auflage), that the amount of resins processed by us does not
exceed 25 kilograms per hour. In 2020, the District Administration (Landratsamt) revised and concretised the permit. For the
building “Halle 3”, the permit was granted in July 2016 by the District Administration (Landratsamt) of Aichach- Friedberg. The
permit was granted under the condition (Auflage), that the amount of resins processed by us does not exceed 10 kilograms per
hour. Facilities that are subject to BImSchG are required to comply with the current state of the art (Stand der Technik) in
emissions reduction and safety technology. We are therefore supervised by the Landesamt für Umweltschutz (LfU) and as well
by the District Administration (Landratsamt) of Aichach-Friedberg and have regularly give full reports about the emissions in our
facilities.
Production, Possession and Handling of Waste and Dangerous Goods. Our business activities result in the generation,
possession and handling of waste, including hazardous waste. Under the German Act on Recycling (Kreislaufwirtschaftsgesetz,
or KrWG), the generation, possession and handling of waste is subject to several obligations, depending, among other things, on
the waste concerned. As the producer (Erzeuger) and possessor (Besitzer) of waste, we are generally responsible for the proper
handling of this waste.
Section 50 of the KrWG requires producers, possessors, collectors and transporters of waste and disposal firms to verify
to the competent authority proper disposal of hazardous waste (gefährliche Abfälle). Whether a certain substance qualifies as
hazardous waste is determined according to the German Ordinance on the European Waste List (Verordnung über das
Europäische Abfallverzeichnis).
We further comply with the International Maritime Dangerous Goods Code, which is accepted as an international
guideline for the safe transportation or shipment of dangerous goods or hazardous materials by water.
We also comply with the Regulation (EC) No. 1907/2006 of the European Parliament and of the Council of
December 18, 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH).
We have trained and educated an employee to serve as our risk prevention officer (Gefahrgutbeauftragter). The risk
prevention officer ensures that we comply with specific regulations and provisions when dangerous goods are shipped. In
addition, we have one “Authorized Person” (Beauftragte Person), who is equally responsible for the risk prevention, and who is
advised by the risk prevention officer. All of these persons (risk prevention officer and the authorized persons) do regularly take
part in external trainings.
Legal Requirements Related to Products
Product Safety. Our products are used in a wide range of industries. As some of our products may be used directly by
customers, we are subject to the German Product Safety Act (Produktsicherheitsgesetz, or ProdSG). The ProdSG is mainly based
on Directive 2001/95/EC of the European Parliament and the Council of December 3, 2001 on general product safety (GPSD).
Through the ProdSG and its predecessors, the GPSD was transformed into German law. With the ProdSG of November 8, 2011
and the ninth regulation to the ProdSG as amended (Neunte Verordnung zum Produktsicherheitsgesetz (Maschinenverordnung)),
the German legislature also transformed, among other European Directives, the Directive 2006/42/EC of the European Parliament
and of the Council of May 17, 2006 on machinery into German law. The ProdSG applies whenever products are made available
on the market, exhibited or used for the first time in the context of a commercial activity, but only in the absence of other legal
provisions that provide for corresponding or more far-reaching provisions.
Under the ProdSG, a product may be made available on the market only if it complies with specific regulations for such
product, or, in the absence of such specific regulations, if its intended or foreseeable use does not put the health and safety of
persons at risk. In essence, under the ProdSG manufacturers may only place "safe" products on the market.
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In addition to compliance with this safety requirement, if products are made available to consumers, manufacturers must
provide consumers with the necessary information to enable them to assess the risks inherent in such product where such risks are
not immediately obvious without adequate warnings. In the event of potential product issues, manufacturers might be under an
obligation to take precautions against such risks (for example, withdraw products from the market, inform consumers, recall
products which have already been supplied to consumers, etc.). If manufacturers or distributors of consumer products discover
that a product is potentially dangerous or unsafe, they must generally notify the competent authorities and, if necessary, cooperate
with them. Unsafe products may also be listed in an EU-wide publicly-accessible database such as RAPEX or ICSMS.
Occupational Health and Safety Requirements. Where the working environment may pose threats to employees,
occupational health and safety laws are applicable. German law on occupational safety is heavily influenced by the requirements
of EU law. The central rules on occupational safety in Germany are contained in the Act on Occupational Safety
(Arbeitsschutzgesetz, or ArbSchG), which requires employers to provide for their employees’ safety. This general obligation is
put into effect through several ordinances (Rechtsverordnungen) under the ArbSchG, which are defined in technical guidelines.
One central element is the Workplaces Ordinance (Arbeitsstättenverordnung), which contains various regulations on workplace
conditions relating to, for example, ventilation, temperature and illumination.
In addition, we are under surveillance of the employers' liability insurance association (Berufsgenossenschaft). All
companies in Germany are obliged to be member of the Berufsgenossenschaft, who is monitoring the companies regarding
compliance with the Health and Safety Requirements and who in general covers liability for accidents at work and occupational
diseases.
Potential Liability for Products and Environmental Losses
Our business activities are such that product liability and liability for environmental damage are possible. Under general
rules of the German Civil Code (Bürgerliches Gesetzbuch, or BGB), fault-based compensation (Schadensersatz) is to be paid for
breach of contract or unlawful infringements of legally protected rights. This obligation does not only apply to our own acts but
may potentially extend to behavior of individuals that work or undertake tasks for us under Sections 278, and 831 of BGB.
In addition, we may be strictly liable (i.e., liable regardless of our fault), as a Producer under the Product Liability Act
(Produkthaftungsgesetz, or ProdHaftG), for damages caused by a defective product. “Producer” generally means any participant
in the production process, the importer of the defective product, any person putting a name, trademark or other distinguishing
feature on the product, and any person supplying a product whose actual producer cannot be identified. A product is “defective”
when it does not provide the safety which a person is entitled to expect when taking all circumstances into account, including
among other things, the presentation of the product, the use to which it could reasonably be expected that the product would be
put and the time when the product was put into circulation.
Additionally, in case of damage to persons or property caused by our facility, we may be strictly liable under the Act on
Liability for Environmental Damage (Umwelthaftungsgesetz). In case of environmental damages to species, natural habitats,
water or soil we may be liable under the Environmental Damage Act (Umweltschadensgesetz). The Environmental Damage Act
only applies if German Federal or State Legislation does not specify the prevention and restoration of environmental damage or
does not comply with this Act in its requirements.
Worldwide
Our operations and the activities of our employees, contractors and agents around the world are subject to the laws and
regulations of numerous countries, including the United States. These laws and regulations include data privacy requirements,
labor relations laws, tax laws, anti-competition regulations, prohibitions on payments to governmental officials, federal and state
environmental regulations, import and trade restrictions and export requirements. Violations of these laws and regulations could
result in fines, criminal sanctions against our officers, our employees, or us and may result in prohibitions on the conduct of our
business. Any such violations could also result in prohibitions on our ability to offer our products and services in one or more
countries and could materially damage our reputation, our ability to attract and retain employees, our business and our operating
results.
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Our operations (particularly in those countries with developing economies) are also subject to risks of violations of laws
prohibiting improper payments and bribery, including the European Union Anti-Corruption Act, UK Bribery Act, U.S. Foreign
Corrupt Practices Act and similar regulations in other jurisdictions. Although we have implemented policies and procedures
designed to ensure compliance with these laws, our employees, contractors, and agents may take actions in violation of such
policies. Any such violations, even if prohibited by our policies, could subject us to civil or criminal penalties or otherwise have
an adverse effect on our business and reputation.
Legal Proceedings
From time to time, we may be subject to various claims or legal, arbitration or administrative proceedings that arise in
the ordinary course of our business. We are currently not a party to any legal, arbitration or administrative proceedings which, in
the opinion of our management, may have or have had in the recent past, significant effects on our business, financial condition
or results of operations, including governmental proceedings pending or known to be contemplated.
Insurance
We maintain comprehensive business liability insurance coverage (Betriebshaftpflichtversicherung “Compact-
Firmenversicherung”) for our business operations. In addition, we have obtained directors and officers liability insurance, which
covers expenses, capped at a certain amount, that our Management and Supervisory Board members and our executive managers
may incur in connection with their conduct as members of our Management and Supervisory Boards or executive managers. We
also maintain insurance policies on our 3D printers, a group insurance policy for our employees covering occupational accidents,
car insurance policies and a legal expenses insurance policy. We consider the insurance coverage we have to be adequate in light
of the risks we face.
Geographic Information
Our revenues by geographic region for the year ended December 31, 2020 were EMEA 53%, Asia Pacific 21% and
Americas 26%, as compared to EMEA 46%, Asia Pacific 26% and Americas 29% for the same period in 2019. In 2018, our
revenues by geographic region were EMEA 56%, Asia Pacific 21% and Americas 23%. See “Item 5. Operating and Financial
Review and Prospects—A. Operating Results.”
C. ORGANIZATIONAL STRUCTURE
Our corporate structure includes voxeljet AG (formerly Voxeljet Technology GmbH) and the two wholly-owned
subsidiaries voxeljet America Inc. (voxeljet America), and voxeljet India Pvt. Ltd (voxeljet India). Additionally it includes
voxeljet China Co. Ltd. (voxeljet China) where we held a shareholding of 70.00% interest. In December 2020, we initiated the
wind-up of voxeljet UK Ltd. (voxeljet UK).
voxeljet China was established on April 11, 2016 and is located in the city of Suzhou, near Shanghai. Within the
contribution of a lease contract on March 1, 2019 which includes 36 months free of rent, which has been negotiated by our joint
venture partner Suzhou Meimai Fast Manufacturing Technology Co., Ltd, (“Meimai”), Meimai has increased their shareholding
from 4.175% to 30.0% as it has been agreed within the joint venture contract. Therefore our shareholding in voxeljet China Co.
Ltd. decreased to 70.00% on March 1, 2019.
On February 5, 2014, our subsidiary, voxeljet America Inc. was incorporated in Delaware. voxeljet America Inc. is
headquartered near Detroit, Michigan and conducts our North American operations. We began printing on-demand parts at the
facility in the first quarter of 2015.
On October 1, 2014, we completed the acquisition of all outstanding shares of Propshop (Model Makers) Limited
(“Propshop”) which became voxeljet UK Ltd, headquartered in Milton Keynes. Following a review of the cost-benefit
considerations of voxeljet UK, management decided to wind up the subsidiary, which was initiated in December 2020. The
employees of our voxeljet UK sales team have been moved to voxeljet AG and will continue to focus on selling 3D printed parts
and 3D printers in the United Kingdom and Northern Europe.
On November 30, 2015, we established our subsidiary voxeljet India Pvt. Ltd to pursue opportunities in the industrial
3D printing market in India. voxeljet India is headquartered and registered in the city of Pune, a large
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automotive and manufacturing center near Mumbai. Since the fourth quarter of 2019 the office is located in the city of Mumbai.
D. PROPERTY, PLANTS AND EQUIPMENT
At December 31, 2020, we owned/leased the following four properties worldwide:
Location
EMEA
Friedberg, Germany
Asia Pacific
Mumbai, India
Suzhou, China
Americas
Canton, Michigan, USA
Primary Usage:
Area (Sq. Feet)
Headquarters, production space, office space
Office space
Production space, office space
Production space, office space
135,380
20
78,000
50,000
We believe that our existing facilities are adequate for our current and foreseeable requirements. The facilities in
Friedberg, Germany are owned by voxeljet, while the facilities in India, China and the U.S. are leased. In March 2020 we
registered a first rank land charge amounting to € 10.0 million on our land and facility located in Friedberg (Germany) Paul-
Lenz-Straße, 1a as collateral in favor of the EIB, in connection with the signing of a waiver with the EIB.
ITEM 4A. UNRESOLVED STAFF COMMENTS
None.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
You should read the following discussion and analysis of our financial condition and results of operations in
conjunction with the section entitled “Item 3. Key Information—A. Selected Financial Data” and our audited financial
statements and the related notes thereto included elsewhere in this annual report. In addition to historical financial information,
the following discussion contains forward-looking statements that reflect our plans, estimates and opinions. Our actual results
could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these
differences or cause our actual results or the timing of selected events to differ materially from those anticipated in these
forward-looking statements include those set forth under “Item 3. Key Information—D. Risk Factors,” “Special Note Regarding
Forward Looking Statements” and elsewhere in this annual report.
The following summarizes the more significant factors impacting our operating results for the fiscal year ended
December 31, 2020 and the fiscal year ended December 31, 2019 as well as our liquidity in fiscal years 2020 and 2019. We have
omitted discussion of 2018 results where it would be redundant to the discussion previously included in our annual report on
Form 20-F filed with the SEC on May 7, 2020.
A. OPERATING RESULTS
Overview
We are a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and
commercial customers. Our 3D printers employ a powder binding, additive manufacturing technology to produce parts using
various material sets, which consist of particulate materials and proprietary chemical binding agents. We offer our customers the
highest volumetric output rate in the industry due to the combination of our large build boxes and print speeds. We provide our
3D printers and on-demand parts services to industrial and commercial customers serving the automotive, aerospace, art and
architecture, engineering and consumer product end markets.
We currently offer eight different 3D printer platforms, with build boxes that range from 300 × 200 × 150 millimeters to
4,000 X 2,000 X 1,000 millimeters and various print speeds, which produce volumetric output rates
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ranging from 0.4 liters per hour to 156.0 liters per hour. All of our platforms support our commercialized material sets, sand and
plastics, along with their respective proprietary chemical binding agents. We develop our material sets according to the needs of
our industrial and commercial customers, and we are currently in varying stages of developing new material sets, including shell
molding and chromite sands, PMMA-based plastics, ceramics, silicon carbide, tungsten carbide, wood powder and cement.
We believe that our innovations in 3D printers will continue to increase customer adoption of our additive
manufacturing technology in industrial and commercial applications.
Our business is divided into two segments: Systems and Services.
In our Systems segment, we focus on the development, production and sale of 3D printers. In addition, we sell
refurbished 3D printers which were produced for and used in our Services segment. Before these 3D printers are sold, they are
fully refurbished and a new printhead is installed. We also provide consumables, including particulate materials and proprietary
chemical binding agents, maintenance contracts, extended warranty contracts and spare parts to our customers.
In our Services segment, we print on-demand custom parts for our customers. At our service centers, we create parts,
molds, cores and models based on designs produced using 3D computer-aided design, or CAD, software.
We sold our first 3D printer in 2002 and commenced our on-demand parts services business in 2003. As of
December 31, 2020, we had an installed base of 199 printers worldwide, and we operated service centers in Germany, the United
States and China.
Our revenues were € 21.6 million, € 24.6 million, and € 26.0 million for the years ended December 31, 2020, 2019, and
2018, respectively.
Our net loss increased by € 1.5 million to a net loss of € 15.5 million in 2020 compared to a loss of € 14.0 million in
2019. In 2019 our net loss increased by € 5.3 million to a net loss of € 14.0 million compared to a loss of € 8.7 million in 2018.
Seasonality
Historically, our results of operations have been subject to seasonal factors. Purchases of our 3D printers often follow a
seasonal pattern owing to the capital budgeting cycles of our customers. Generally, 3D printer sales are higher in our second and
fourth fiscal quarters than in our first and third fiscal quarters. Sales in our Services segment generally are not affected by
seasonality. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—Our revenues and
operating results may fluctuate.”
Currency
Within fiscal year 2020, we had operations in Germany, the United Kingdom, the United States, China and India. As a
result, our revenue and earnings have exposure to a number of currencies, primarily the Euro, the U.S. dollar, the British Pound
Sterling and the Chinese renminbi. As our presentation currency is the Euro, and the functional currencies of the businesses
located outside of the Europe are their local currencies, the results of the businesses located outside of Europe must be translated
each period to Euros. The financial statements of foreign subsidiaries are translated using the concept of the functional currency
in accordance with IAS 21. The assets and liabilities of foreign subsidiaries are translated at the spot rate at the end of the period,
while their income statement items are translated at average exchange rates for the respective periods. All resulting exchange
differences are recognized in other comprehensive income. Gains and losses on foreign currency transactions primarily due to
intercompany loans given to our subsidiaries are shown within other operating income and other operating expenses,
respectively, in the consolidated statement of comprehensive loss. This calculation may differ from similarly titled measures used
by other companies and, accordingly, the changes excluding the effect of foreign currency translation are not meant to substitute
for changes in recorded amounts presented in conformity with IFRS nor should such amounts be considered in isolation.
We do not manage our foreign currency exposure in a manner that would eliminate the effects of changes in foreign
exchange rates. Therefore, changes in exchange rates between these foreign currencies and the Euro will affect
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our revenues, cost of goods sold, and operating margins, and could result in exchange losses in any given reporting period.
Growth Strategy
Our business strategy focuses on (i) growing our Services segment in order to print more parts for our existing
customers and gain new customers in Europe, Asia Pacific and Americas and (ii) using our knowledge and market position to
increase sales of our 3D printers in the Systems segment. Our growth strategy is also dependent in part on continuing our
investment in research and development activities, which should enable us to meet the needs of our target customers through the
development of new material sets and 3D printers with faster print speeds. Expanding our business to realize our growth strategy
may require additional investments of capital from time to time, and our existing sources of cash and any funds generated from
operations may not provide us with sufficient capital. For various reasons additional financing may not be available when
required or may not be available on terms favorable to us. If we fail to obtain adequate cash sources on a timely basis or if funds
cannot be obtained at reasonable costs, we may not be able to achieve our planned rate of growth, which will adversely affect our
results of operations.
We intend to develop our customer base internationally, so that our revenues are not dependent on sales to any one
region. We also seek to grow both our Systems and Services segments so that we are not overly reliant on either segment. We
believe that this strategy will help to offset some of the variability in the Systems segment, which can be more susceptible to
macroeconomic trends.
Outlook
We believe that interest in additive manufacturing is increasing as a result of increased commercialization of 3D printers
and recent media attention worldwide. We occupy a defined space in the additive manufacturing market because of the size of
our machines and their ability to print industrial products from qualified industrial materials. While our 3D printers may differ
from those of many other additive manufacturing companies, we expect an increase in additive manufacturing to generally have a
positive effect on the public’s awareness of our industry.
Furthermore, we believe that additive manufacturing provides several advantages over traditional design and
manufacturing processes, including:
●
●
elimination of design constraints;
reduced cost of complexity;
● mass customization;
●
●
reduced time to market; and
cost effective short run production.
There are a number of available additive manufacturing technologies, including powder binding, inkjet, fused deposition
modeling, stereolithography and selective laser sintering. These technologies differ on the basis of accuracy, surface quality,
variety and properties of consumables, capacity, speed, color variety, transparency and the ability to print multiple materials,
among other factors. Our 3D printers employ a powder binding technology to produce parts using various material sets. Powder
binding is a process in which layers of powder are bonded by a liquid agent that is deposited through a printhead. We believe this
process has the fastest build speeds and the lowest materials cost relative to other additive manufacturing technologies.
Assuming that there is no prolonged or recurring incidence of the COVID-19 crisis, we believe that our investments in
additional capacity in continental Europe and service centers in the United States and China should position us to generate growth
in our Services segment in the future.
We also expect to spend significant time and resources mitigating the impact of COVID-19, remediating material
weaknesses in our internal controls over financial reporting as well as cooperating with any review by our regulators.
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Key Measures of Our Business
We use several financial and operating metrics to measure our business. We use these metrics to assess the progress of
our business, make decisions on where to allocate capital, time and technology investments, and assess the longer- term
performance of our marketplace. The key metrics are as follows:
Revenues
Our revenues are generated primarily by sales of our new or used and refurbished 3D printers, consumables and custom
3D printed parts produced at our service centers. We operate in two segments: Systems and Services. The Systems segment
derives its revenues from the sale of new or used and refurbished 3D printers and products and services related to our 3D printers,
including consumables, which include particulate materials and proprietary chemical binding agents, maintenance contracts and
spare parts. Systems revenue also includes revenues associated with the leasing of 3D printers to customers; however, revenues
related to the leasing of 3D printers is not material. Within the Systems segment, we also report revenues from tailoring and
development services. The Services segment derives its revenues from the on-demand printing of parts at our service centers.
Our revenues are influenced by:
●
●
●
●
●
●
global macroeconomic conditions;
the adoption rate of our 3D printers and material sets;
our ability to develop new products and technologies that address the increasingly sophisticated and varied needs of
prospective end-users, particularly with respect to the physical properties of print materials and other consumables;
the capital expenditure budgets of our potential customers;
the amount of design and manufacturing activity; and
the adoption of additive manufacturing technology in various industries.
Sales of our 3D printers, particularly our higher-priced systems, typically involve long sales cycles, are subject to
seasonality and can be difficult to forecast. Because each of our printers can represent a significant amount of revenues, a delay in
a purchasing decision, our production schedule or the shipment of a printer can have a material impact on our periodic reporting
of revenues.
From time to time, refurbished 3D printers which have been operating at the Company’s service centers are routinely
sold to customers. Before these 3D printers are sold, they are generally fully refurbished, a process which includes the installation
of a new printhead. On average, these refurbished printers have been operating within the service center for 1.5 to 2.5 years prior
to their sale. The proceeds from the sale of such refurbished 3D printers are recognized as Systems revenues.
Gross Profit
Our gross profit and gross profit margin for our Systems and Services segments are mainly influenced by materials and
labor costs. In particular, the gross profit margin in our Systems segment on sales of our 3D printers also depend on the type and
status of the sold products. Sales of refurbished printers manufactured by us typically generates lower gross profits compared to
sales of new 3D printers.
EBITDA
Our EBITDA (earnings before interest, taxes, depreciation and amortization) is mainly influenced by the gross profit
from our Systems segment and Services segment as well as from the operating expenses from the functions research and
development, administration and sales and marketing. In addition, other operating expense and other
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operating income including gains and losses from foreign exchange transactions have an impact on EBITDA. The gross profit
from our Systems segment is mainly driven by materials and labor costs. The gross margin drivers for our Services segment
relate to revenues, materials, labor and energy costs as well as facility costs. Costs for the non-productive functions is influenced
primarily by labor. Research and development expenses are partially driven by materials. One of the main drivers of expenses for
the administrative function is legal fees as well as accounting and auditing fees while sales and marketing expenses are also
influenced by commissions paid to sales agents.
Critical Accounting Policies and Significant Estimates
Please refer to Part III, Item 18. Financial Statements, Note 5 “Critical accounting judgment and key sources of
estimation and uncertainty” to the consolidated financial statements.
Statements of Comprehensive Loss Data
Year Ended December 31, 2020 compared to Year Ended December 31, 2019
The following table sets forth certain statements of comprehensive loss data both on an actual basis and as a percentage
of revenues for the periods indicated:
2020
Amount
(€ in thousands)
€ 21,567
14,812
6,755
5,816
6,407
6,500
2,799
(1,603)
(13,164)
2,589
(184)
2,405
(15,569)
(88)
€ (15,481)
Revenues
Cost of sales
Gross profit
Selling expenses
Administrative expenses
Research and development
expenses
Other operating expenses
Other operating (income)
Operating loss
Finance expense
Finance (income)
Financial result
Net loss before income taxes
Income tax expense (income)
Net Loss
Year Ended December 31,
2019 (i) (ii)
Percentage
of revenues
100%
68.7
31.3
27.0
29.7
30.1
13.0
7.4
61.0
12.0
0.9
11.2
72.2
(0.4)
71.8%
Amount
(€ in thousands)
€ 24,602
17,426
7,176
7,118
6,952
7,212
945
(2,143)
(12,908)
1,349
(318)
1,031
(13,939)
39
€ (13,978)
Percentage of
revenues
Period-over-
period change
(€ in thousands)
100%
70.8
29.2
28.9
28.3
29.3
3.8
8.7
52.5
5.5
1.3
4.2
56.7
0.2
56.8%
€ (3,035)
(2,614)
(421)
(1,302)
(545)
(712)
1,854
540
(256)
1,240
134
1,374
(1,630)
(127)
€ (1,503)
(i) Comparative figures for the year ended December 31, 2019, were revised related to the amendment of classification of short-
term investments. For further information, see Part III, Item 18. Financial Statements, Note 2 “Preparation of financial
statements” to the consolidated financial statements.
(ii) Comparative figures for the year ended December 31, 2019, were revised related to the recalculation of the performance
participation interest related to the Finance Contract with the EIB. For further information, see Part III, Item 18. Financial
Statements, Note 2 “Preparation of financial statements” to the consolidated financial statements.
Summary
Our revenues decreased by € 3.0 million, or 12%, to € 21.6 million in 2020 from € 24.6 million in 2019. This was due to
the decreases in revenues from both segments Systems and Services amounting to € 0.9 million and € 2.1 million, respectively.
Our gross profit decreased by € 0.4 million from € 7.2 million in 2019 to € 6.8 million in 2020. This was due to a
decrease in gross profit of the Services segment of € 0.6 million mainly related to the decline in revenues. This was
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partially offset by our Systems segment, where we recorded a slight increase in gross profit amounting to € 0.2 million. In our
Services segment, we received significant lower gross profit contribution from our subsidiary voxeljet America due to a material
decline in Services revenues. This was partially offset by higher gross profit contribution from the German service center mainly
related to lower personnel expenses through the restructuring initiated in 2019 as well as the implementation of cost saving
measures executed as a consequence of the COVID-19 situation. Gross profit contribution from voxeljet China remained almost
unchanged. Since the close down of our service center in the United Kingdom in the fourth quarter of 2019, there were no further
gross profit contributions from voxeljet UK. Our consolidated gross profit margin slightly improved to 31% in 2020 compared to
29% in 2019.
Our operating loss increased by € 0.3 million to a loss of € 13.2 million in 2020 from a loss of € 12.9 million in 2019.
This was mainly due to a negative net impact of the year over year changes in other operating expenses and other operating
income amounting to € 2.4 million. In addition, gross profit for 2020 decreased by € 0.4 million compared to last year. This was
almost fully offset by significant cost savings within each of our functions. Year over year, selling expenses, research and
development expenses and administrative expenses declined by € 1.3 million, € 0.7 million and € 0.5 million, respectively. This
proves, that the restructuring measures implemented in the past financial year took effect already in 2020. Further, this reflects
the cost saving measures we conducted in 2020 in order to mitigate adverse impacts like the significant decrease in market
demand related to the global economic crises caused by the worldwide outbreak of the COVID-19 virus.
Revenues by Segment
The table below sets forth the change in revenues by segment from 2019 to 2020:
Systems
Services
Total Revenues
Year Ended December 31,
2020
2019
€ 12,556
9,011
€ 21,567
(€ in thousands)
€ 13,454
11,148
€ 24,602
period-over-
period change
€ (898)
(2,137)
€ (3,035)
Revenues from the Systems segment for 2020 were € 12.6 million, representing a 6.7% decrease over revenues of
€ 13.5 million in 2019. The Company sold eight new and five used and refurbished 3D printers during the year ended December
31, 2020 compared to thirteen new and six used and refurbished 3D printers in the prior year period. Revenue from the sale of 3D
printers slightly decreased in 2020 compared to last year, due to the lower number of transactions. As we overall sold a higher
number of larger-scale printers in 2020 compared to 2019, which generate higher revenues, we recorded merely a slight decline
in revenues from the sale of 3D printers. Systems revenues also include all Systems-related revenues from consumables, spare
parts and maintenance. Those Systems-related revenues perceptibly decreased year over year, also significantly impacted by the
COVID-19 situation, as the performance of service visits was limited in many regions of the world, which made it impossible to
fulfill our maintenance schedule. Further, we experienced lower demand for consumables and spare parts in 2020, as our clients
have reduced their production activities, especially in the second quarter of 2020. All those matters led to the decrease in
Systems-related revenues. In the third quarter of 2020, demand for consumables and spare parts substantially recovered compared
to the prior two quarters in 2020. This positive trend continued in the fourth quarter of 2020.
Revenues from the Services segment for 2020 were € 9.0 million, which represents a decrease of € 2.1 million or 18.9%
in revenues compared to € 11.1 million in 2019. This decrease was mainly due to a significant decrease in revenue contribution
from our subsidiary voxeljet America, reflecting the slow-down of the economy related to the COVID-19 situation accompanied
by a sharp drop in market demand from our clients in North America. Revenue contribution from our subsidiary voxeljet UK
significantly decreased. This was related to the close down of our service center in the United Kingdom in the fourth quarter of
2019 in the course of our restructuring, which started in the third quarter of 2019. Also, revenue contribution from our service
center in China slightly declined due to the subdued economy related to COVID-19. The German operation recorded slightly
higher revenues from the Services segment in 2020 compared to 2019. After a weak start into fiscal year 2020 with the bottom in
the second quarter, we saw a considerable market recovery from the second half of 2020 onwards including catch-up effects in
the fourth quarter of 2020.
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Revenues by Geographic Region
The table below sets forth the change in revenues by geographic region from 2019 to 2020:
EMEA
Asia Pacific
Americas
Total
Year Ended December 31, 2020
Year Ended December 31, 2019
Revenues
(€ in thousands)
Percentage
Revenues
(€ in thousands)
Percentage
11,466
4,521
5,580
21,567
53.2%
21.0
25.9
100.0%
11,265
6,302
7,035
24,602
45.8%
25.6
28.6
100.0%
We generated more than 53% of our revenues in the EMEA region for the year ended December 31, 2020 with an
increasing relative proportion of our revenues as compared to the year ended December 31, 2019. This is not related to higher
absolute portion of revenues in the EMEA region but related to lower absolute portions within the regions Asia Pacific and
Americas. Relative and absolute portion of revenues in the Asia Pacific region decreased mainly due to lower printer sales, but
also due to decreased sales from our Services segment. Revenue in the region Americas decreased year over year mainly due to
lower revenues from the Services segment but also from Systems-related revenues. This was partially offset by higher revenues
from the sale of 3D printers.
Gross Profit and Gross Profit Margin
Total gross profit for 2020 decreased, which was related to the Services segment, partially offset by the Systems
segment. Total gross profit margin slightly improved due to the increase related to the Systems segment, while gross profit
margin from the Services segment was flat. Overall, our gross profit margin increased from 29% in 2019 to 31% in 2020.
The table below sets forth gross profit and gross profit margin for our Systems and Services segments for the presented
periods:
Year Ended December 31, 2020
Gross margin as
percentage of
relevant segment
revenues
Amount
Systems
Services
Total
(€ in thousands)
€ 4,441
2,314
€ 6,755
35.4%
25.7
31.3%
Year Ended December 31, 2019
Gross margin as percentage of
relevant segment revenues
Period-over-
period change
Amount
(€ in thousands)
€ 4,284
2,892
€ 7,176
(€ in thousands)
€ 157
(578)
€ (421)
31.8%
25.9
29.2%
Gross profit for our Systems segment increased to € 4.4 million in 2020 from € 4.3 million in 2019, while the gross
profit margin improved, with a 3.6% increase to 35.4% in 2020 from 31.8% in 2019. This was due to higher gross profit and
gross profit margin from System-related goods and services, including consumables, spare parts and maintenance, reflecting cost
savings from the restructuring measures, which have been implemented at the end of 2019. In contrast to this, gross profit and
gross profit margin from the sale of 3D printers slightly decreased in 2020, compared to last year. In the fourth quarter of 2019
we recorded a provision for restructuring charges related to the restructuring program at the German operation resulting in a
negative impact of € 0.2 million. This provision has fully been used within the year 2020.
Gross profit for our Services segment in 2020 amounted to € 2.3 million, and therefore significantly decreased by
€ 0.6 million compared to 2019. Gross profit margin only slightly decreased from 25.9% in 2019 to 25.7% in 2020. This was
mainly related to significantly lower gross profit as well as gross profit margin contribution from our American service center, as
a result of lower utilization in line with the decrease in revenues. Gross profit as well as gross profit margin contribution from our
German service center substantially improved year over year, due to cost saving measures implemented as a consequence of the
COVID-19 situation. Gross profit and gross profit margin contribution from voxeljet China slightly improved.
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Operating Expenses
As shown in the table below, total operating expenses slightly decreased to € 19.9 million in 2020 compared to €
20.1 million in 2019, but increased to 92.4% of revenues in 2020 compared to 81.6% in 2019. Selling expenses decreased from
€ 7.1 million in 2019 to € 5.8 million in 2020. This year over year decrease of € 1.3 million is mainly due to lower distribution
expenses corresponding to the decrease in revenues. Shipping and packaging expenses as a main driver of the selling expenses
could vary from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are
being delivered. Further, selling expenses from voxeljet UK significantly decreased as a result of the successful restructuring,
which started in the third quarter of 2019. In addition, we incurred lower expenses for travelling, trade fairs and exhibitions
related to the COVID-19 situation and the associated global restrictions. Also administrative expenses decreased. We recorded a
decrease of € 0.5 million from € 6.9 million in 2019 to € 6.4 million in 2020. This was mainly due to significantly lower
administrative expense from voxeljet UK as a result of the completed restructuring. In 2019, we faced two exceptional effects,
which adversely impacted our administrative expenses. Firstly, we recorded restructuring charges at voxeljet UK and at voxeljet
Germany amounting to € 0.3 million and € 0.1 million, respectively. Secondly, in 2019 we incurred higher advisor fees mainly
related to the Audit Committee Investigation. The year 2020 was still impacted by unexpected advisor fees related to the Audit
Committee Investigation. Operative expenses within the function R&D decreased by € 0.7 million from € 7.2 million in 2019 to
€ 6.5 million in 2020. This was mainly due to lower personnel expenses as a result of the restructuring. Administrative expenses
mainly included personnel expenses as well as consulting fees also related to the Audit Committee Investigation. The majority of
our selling expenses related to personnel expenses and distribution expenses including freight and commissions for sales agents.
Year Ended December 31,
2020
2019
Amount
(€ in thousands)
Percentage
of revenues
Amount
(€ in thousands)
Percentage
of revenues
Period-over-
period change
(€ in thousands)
Operating expenses
Selling expenses
Administrative expenses
Research and development
expenses
Other operating expenses
Other operating (income)
Total
Other operating income and expenses
€ 5,816
6,407
6,500
2,799
(1,603)
€ 19,919
27.0%
29.7
30.1
13.0
(7.4)
92.4%
€ 7,118
6,952
7,212
945
(2,143)
€ 20,084
28.9%
28.3
29.3
3.8
(8.7)
81.6%
€ (1,302)
(545)
(712)
1,854
540
€ (165)
Other operating expenses for the year ended December 31, 2020 were € 2.8 million compared to € 0.9 million in the
prior year period. This is mainly due to higher losses from foreign currency translations. Foreign currency losses amounted to
€ 2.5 million for the year ended December 31, 2020, compared to € 0.9 million in the same period in 2019.
Other operating income was € 1.6 million for the year ended December 31, 2020 compared to € 2.1 million in the prior
year period. The decrease was mainly due to lower gains from foreign currency transactions amounting to € 0.8 million in 2020
compared to € 1.7 million in 2019. This was partially offset by higher income from government grants with a year-over-year
impact of € 0.3 million positive. In April 2020, our subsidiary voxeljet America received a government grant from the United
States Small Business Administration (“SBA”) under the COVID-19 funding program amounting to € 0.3 million. The full
amount was recognized in profit and loss, in the second quarter of 2020, as the related costs for which the grant is intended to
compensate occurred in this period and we assume that we comply with the conditions of the funding. The assessment of SBA
whether we are in compliance with the conditions, has not been performed yet.
The changes in foreign currency losses and gains were primarily driven by the valuation of the intercompany loans
granted by the parent company to our UK and U.S. subsidiaries.
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Operating Loss
Operating loss and operating loss as a percentage of total revenues in 2020 and 2019 were as follows:
Year Ended December 31,
2020
2019
Operating loss
Amount
(€ in thousands)
€ (13,164)
Percentage
of revenues
Amount
(€ in thousands)
Percentage
of revenues
(61.0)%
€ (12,908)
(52.5)%
Period-over-
period change
(€ in thousands)
€ (256)
We had an operating loss of € 13.2 million in 2020, an increase of € 0.3 million compared to an operating loss of €
12.9 million in 2019. This was mainly due to a negative net impact of the year over year changes in other operating expenses and
other operating income amounting to € 2.4 million. In addition, gross profit for 2020 decreased by € 0.4 million compared to last
year. This was almost fully offset by significant cost savings within each of our functions. Year over year, selling expenses,
research and development expenses and administrative expenses declined by € 1.3 million, € 0.7 million and € 0.5 million,
respectively.
Financial Result
Interest expense
Interest income
Financial result
Year Ended December 31,
2020
2019 (i) (ii)
(€ in thousands)
2,589
(184)
2,405
1,349
(318)
1,031
(i) Comparative figures for the year ended December 31, 2019, were revised related to the amendment of classification of short-
term investments. For further information, see Part III, Item 18. Financial Statements, Note 2 “Preparation of financial
statements” to the consolidated financial statements.
(ii) Comparative figures for the year ended December 31, 2019, were revised related to the recalculation of the performance
participation interest related to the Finance Contract with the EIB. For further information, see Part III, Item 18. Financial
Statements, Note 2 “Preparation of financial statements” to the consolidated financial statements.
We had a financial result of € 2.4 million negative in 2020, a decrease of € 1.4 million compared to a financial result of
€ 1.0 million negative in 2019. This was mainly due to higher interest expense for long-term debt which amounted to
€ 1.6 million in 2020, compared to € 1.0 million in 2019. This was mainly related to the fixed interest related to the first portion
of the second tranche (tranche B1) of the loan granted by the European Investment Bank under the Finance Contract amounting
to € 5.0 million, which has been drawn down in June 2020. In addition, the impact from the revaluation of derivative financial
instruments amounted to negative € 0.7 million for 2020, compared to negative € 0.1 million in 2019, which leads to a year over
year change of € 0.6 million negative.
Reconciliation of Net Loss to EBITDA
Net loss
Income taxes
Financial result
Depreciation and Amortization
EBITDA
2020
2019 (i) (ii)
(€ in thousands)
€ (15,481)
(88)
2,405
3,442
€ (9,722)
€ (13,978)
39
1,031
4,211
€ (8,697)
(i) Comparative figures for the year ended December 31, 2019 were revised related to the amendment of classification of short-
term investments. For further information, see Part III, Item 18. Financial Statements, Note 2 “Preparation of financial
statements” to the consolidated financial statements.
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(ii) Comparative figures for the year ended December 31, 2019 were revised related to the recalculation of the performance
participation interest related to the Finance Contract with the EIB. For further information, see Part III, Item 18. Financial
Statements, Note 2 “Preparation of financial statements” to the consolidated financial statements.
B. LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2020, we had cash and cash equivalents of € 5.3 million and held investments in two bond funds of
€ 3.0 million, thereof € 2.0 million restricted.
In fiscal year 2019, we breached our Total Net Financial Debt to EBITDA ratio financial covenant and were in non-
compliance with the letters of credit limit under the Finance Contract with the EIB and remained in default as at December 31,
2019. Consequently, the EIB could have called the loan due, however after discussions which started in July 2019, in March
2020, we received a waiver for the covenant breaches in 2019 and also a period of grace, ending 31 March 2021, within which
we could rectify the breach and during which the EIB could not demand immediate repayment. In return, we registered a first
rank land charge amounting to € 10.0 million on our land and facility located in Friedberg (Germany) Paul-Lenz-Straße, 1a as
collateral in favor of the EIB in March 2020. In June 2020, we announced that the EIB and voxeljet AG further expanded our
partnership. The EIB disbursed € 5.0 million of the second tranche (tranche B1) of the loan in June 2020 with a bullet repayment
after five years. In addition, we amended the financial covenants in the Finance Contract to replace the Total Net Financial Debt
to EBITDA ratio with the Minimum Cash Covenant. As of June 30, 2020, pursuant to the semi-annual financial testing
prescribed by the Finance Contract, as amended, we were in compliance with the Minimum Cash Covenant. However, in March
2021, we discovered that our calculation of cash and cash equivalents for determining compliance with the Minimum Cash
Covenant was incorrect and, accordingly, we were not in compliance with the Minimum Cash Covenant as of December 31,
2020. Also in March 2021, we received a waiver from the EIB for the noncompliance with the Minimum Cash Covenant,
pursuant to which (i) the EIB agreed that it will not demand immediate repayment of the outstanding amounts owed and (ii) the
EIB and the Company amended the financial covenants in the Finance Contract to clarify the calculation of cash and cash
equivalents for determining compliance with the Minimum Cash Covenant.
In January 2021, the Company has successfully completed its registered direct offering and sale of 621,170 ordinary
shares in the form of ADS at a purchase price of € 13.33 per share (this equals $16.16 per ordinary share based on the exchange
rate as of the close of business in New York on January 14, 2021). This provided voxeljet with gross proceeds of the offering
amount to approximately $10 million (€ 8.3 million) before deducting fees and expenses. In February 2021, voxeljet completed
another registered direct offering and sale of 443,414 ordinary shares in the form of ADS at a purchase price of € 22.27 per
ordinary share (this equals $26.95 per ordinary share based on the exchange rate as of the close of business in New York on
February 9, 2021). This provided the Company with gross proceeds of approximately $12 million (€ 9.9 million) before
deducting fees and expenses. Those capital increases improved our liquidity as well as equity ratio significantly. In spite of this
success, management is taking further steps to raise further funds which may include debt or equity financing, not without
mentioning, that there can be no assurance that we will be able to raise further funds on terms favorable to us, if at all.
Due to the disbursement of the € 5.0 million of the second tranche of the loan granted by the EIB as well as the
successful capital raises in January and February 2021, we believe that our cash resources are sufficient to support our business
plan for at least the next 24 months and beyond, based on the assumption that our business plan is executed appropriately and
sales track as expected. The global spread of COVID-19 increases the uncertainties and risks for the Company. Nevertheless, our
current forecasts, which already consider adverse impacts from the COVID-19 pandemic and the related downturn of the global
economy, supports the assumption of our ability to meet our financial obligations for the next 24 months and further. Our
consolidated financial statements as of and for the year ended December 31, 2020 have been prepared on the basis that we will
continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of
business.
In 2016, we concluded new loan agreements with Kreissparkasse Augsburg, Germany, to finance the construction of
new office and production facilities in Friedberg: (i) in February 2016, the Company entered into a € 2.0 million loan agreement
due May 31, 2038. Interest is payable at a fixed rate of 2.47%; (ii) in February 2016, the Company entered into a € 1.0 million
loan agreement due April 30, 2038. Interest is payable at a fixed rate of 2.72%; (iii) in February 2016, the Company entered into
a € 1.0 million loan agreement due April 30, 2040. Interest is payable at a variable rate of 1.75%; (iv) In December 2016, the
Company entered into a € 0.5 million loan agreement due July 30, 2038. Interest is payable at a fixed rate of 2.42%; and (v) in
December 2016, the Company entered into a € 0.5 million
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loan agreement due September 30, 2037. Interest is payable at a fixed rate of 2.73%. Among other terms, the loan agreements
contain (i) certain covenants, including that we deposit € 2.0 million with Kreissparkasse Augsburg until we have reached certain
ratios (financial covenants) with respect to our ability to service the debt by the end of fiscal year 2019, and (ii) change of control
provisions concerning the ownership of the Company by our executive officers, Dr. Ingo Ederer and Rudolf Franz. By the end of
the fiscal year 2019, we failed to meet these financial covenants. Therefore, we were obliged to pledge € 2.0 million for the
benefit of the lender. In addition, the land owned by us upon which the facilities have been built as well as three 3D printers serve
as collateral under the loan agreements.
As of December 31, 2020 we had available lines of credit with two German banks totaling € 0.2 million. Interest rates
across the credit lines varied from 5.15% to 6.80% as of December 31, 2020.
Cash Flow
Our primary sources of cash in 2020 were revenues, the disbursement of tranche B1 of the second tranche related to the
loan granted by the EIB, proceeds from sale of financial assets and cash reserves. Our primary uses of cash have traditionally
been to finance our operations and to support the anticipated growth of our business.
The table below sets forth cash flows from operating, investing and financing activities for 2019 and 2020:
Cash provided by (used in) operating activities
Cash provided by (used in) investing activities
Cash provided by (used in) financing activities
Increase (decrease) in cash and cash equivalents
2020
2019 (i) (ii)
(€ in thousands)
€ (6,598)
3,921
3,467
€ 790
€ (6,592)
4,641
(1,157)
€ (3,108)
(i) Comparative figures for the year ended December 31, 2019 were revised related to the amendment of classification of short-
term investments. For further information, see Part III, Item 18. Financial Statements, Note 2 “Preparation of financial
statements” to the consolidated financial statements.
(ii) Comparative figures for the year ended December 31, 2019 were revised related to the recalculation of the performance
participation interest related to the Finance Contract with the EIB. For further information, see Part III, Item 18. Financial
Statements, Note 2 “Preparation of financial statements” to the consolidated financial statements.
Our cash and cash equivalents increased from € 4.4 million at December 31, 2019 to € 5.3 million at December 31,
2020.
Operating Activities
Net cash used in operating activities was € 6.6 million for the year ended December 31, 2020 compared to cash used in
operating activities of € 6.6 million for the year ended December 31, 2019, and therefore almost unchanged.
Investing Activities
Investing activities generally consist primarily of capital expenditures to support our growth and proceeds from the sale
of certain short-term financial assets. In 2020, we adopted austerity measures in response to the global economic impact of
COVID-19, and therefore only approved capital expenditures, which were essential. This included further upgrades of our ERP-
System. In addition, we have sold short-term financial assets in 2020 amounting to € 4.0 million net compared to € 5.6 million
net in 2019 to fund our operation.
In 2019, we spent the majority of our capital expenditure for the final payment related to the new office building and
production facility located in Friedberg, Germany, which were completed in October 2017, as well as further upgrades of our
ERP-System.
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Financing Activities
In 2020, financing cash flows consisted primarily of € 5.0 million received from the disbursement of tranche B1 of the
second tranche related to the loan, granted by the EIB. This was partially offset by cash outflows from the repayment of long-
term debt amounting to € 0.9 million, lease liabilities € 0.4 million and interest payments of € 0.3 million.
In 2019, financing cash flows consisted primarily of repayment of long-term debt amounting to € 1.0 million, partially
offset by proceeds from issuance of long-term debt amounting to € 0.5 million.
C. RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES
Research and development is a key part of our strategy to develop new material sets and enhancements to our 3D
printers. Our research and development expenses totaled € 6.5 million, € 7.2 million, and € 6.3 million for the years ended
December 31, 2020, 2019, and 2018, respectively. For further information on our policies and practices regarding research and
development, see “Item 4. Information on the Company—B. Business Overview—Research and Development.”
D. TREND INFORMATION
Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands,
commitments or events for the year ended December 31, 2020 that are reasonably likely to have a material adverse effect on our
revenues, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily
indicative of future operating results or financial conditions. The target for the next years is to become cash neutral, and in
addition to identify further funding sources.
E. OFF BALANCE SHEET ARRANGEMENTS
We are not a party to any off balance sheet arrangements.
F. TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
Contractual Obligations
Future contractual payments as of December 31, 2020 consisted of long-term debt, operating leases and finance leases,
which are discussed in greater detail below.
December 31, 2020
(€ in thousands)
Total
Less than a year
1-3 years
3-5 years
More than 5
years
31,280
3,715
34,995
25,531
412
25,943
915
1,627
2,542
625
637
1,262
4,209
1,039
5,248
Bank overdrafts, lines of credit and long-term
debt
Lease liability
Total
G. SAFE HARBOR
See “Special Note Regarding Forward Looking Statements” on page 1 of this annual report.
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ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A. DIRECTORS AND SENIOR MANAGEMENT
Supervisory Board
The following table sets forth the names and functions of the current members of our Supervisory Board, their ages,
their terms (which expire on the date of the relevant year’s annual general shareholders’ meeting) and their principal occupations
outside of our Company as of March 1, 2021:
Name
Peter G. Nietzer (Chairman)
Dr. Stefan Söhn (Vice Chairman)
Volker Neuber (Member)
Age
60
66
53
Term Expires
2023
2023
2023
Principal occupation
Managing director of an asset management firm
Consultant and lawyer
Vice president at an industrial firm
Mr. Eberhard Weiblen informed the Company on May 11, 2020 that he will resign from his office as member of the
Supervisory Board of the Company for professional reasons with effect from the end of the General Meeting that resolves on his
discharge for the financial year 2019.
The business address of the members of our Supervisory Board is the same as our business address: voxeljet AG, Paul-
Lenz-Straße 1a, 86316 Friedberg, Germany. Our Supervisory Board has determined that all members of our Supervisory Board
are independent under German law and the NASDAQ Listing Rules.
The following is a brief summary of the business experience of the members of our Supervisory Board:
Peter Nietzer, born in 1960 in Heilbronn, Germany, has been the chairman of our Supervisory Board since July 2, 2013.
Mr. Nietzer has served as owner and managing director of KITES Industriebeteiligungen GmbH, a private investment holding
company, and of M59 Advisory Services, since January 2013 and as Partner and Chief Financial Officer of
GermanCapital GmbH, a private equity company he co-founded and that specializes in mid-market buy-outs, from July 2005 to
July 2013. Mr. Nietzer also served as a Non-Executive Director of Cognis Credit Opportunities Fund Ltd., Cognis Credit
Opportunities Master Fund Ltd. and Cognis Credit Opportunities Manager (Cayman) Ltd. from September 2013 to December 31,
2016. Since April 2000, Mr. Nietzer has been an executive board member and Managing Partner of Felicitas GmbH (which was
previously known as GI Ventures AG), a fund management company he helped found. Further, since November 2020,
Mr. Nietzer has been Managing Director of Robotics Ventures GmbH, Munich, a private investment holding company with focus
on robotics, AI and automation, which he co-founded. Mr. Nietzer holds an M.B.A. from Friedrich-Alexander University
Erlangen-Nürnberg, Germany. We believe that Mr. Nietzer’s over 20 years of experience in private equity and venture capital
and his previous roles as a Supervisory Board member provide him with valuable insight into our business, particularly in the
areas of financing and acquisition opportunities, while his focus on technology companies gives him insight into our operations
and industry. In addition, Mr. Nietzer’s work as a chief financial officer provides the Supervisory Board with expertise in
financial matters.
Dr. Stefan Söhn, born in 1954 in Düsseldorf, Germany, has been the vice chairman of our Supervisory Board since
July 2, 2013. Since January 2010, Dr. Söhn has been serving as a Partner and Managing Director of MultiTrust Capital Partners
GmbH (formerly MBL China Consulting GmbH). Dr. Söhn has also been Managing Director and owner of Söhn Industrial
Consulting since April 2010. Since January 2021, he has additionally served as the Head of Asia-Pacific Desk at Vindelici
Advisors AG. Previously, Mr. Söhn served as Head of China Desk of Sonntag & Partner Wirtschaftsprüfer, Steuerberater,
Rechtsanwälte in Augsburg and Munich, Germany, from March 2011 to December 2014. Dr. Söhn also held executive positions
at KUKA Systems GmbH, an equipment supplier to the automotive industry, from July 2000 to December 2009, serving as its
Chief Financial Officer from July 2000 to December 2006 and as its Chief Executive Officer from January 2007 to December
2009. Dr. Söhn served as Chief Financial Officer of Andreas Schmid Logistik AG from April 2018 to December 2020. During
his time at KUKA Systems GmbH, Dr. Söhn led the successful expansion of its business in Asia. Dr. Söhn holds a law degree
from the University of Augsburg, Germany and a Master of Science in Management from the London Business School.
Volker Neuber, born in 1967 in Bad Kissingen, Germany, joined the supervisory board of voxeljet AG in July 2020.
Mr. Neuber started his career in 1991 as a trainee with General Electric, where he held various positions from sales, marketing
and Six Sigma Master Black Belt to the General Management of it’s German plastics division. From
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2004 to 2010, he acted as Vice President for Husky Injection Molding Systems Ltd, where he was responsible for strategic
corporate development of the markets in Europe, Africa and the Middle East. In 2010, Mr. Neuber took over the majority shares
in Ettlinger Kunststoffmaschinen GmbH, a manufacturer of high-performance filters for plastics recycling. He sold Ettlinger to
the U.S. company Dover (NYSE: DOV) in 2018. Since October 2020, Mr. Neuber has served as Vice President Business
Development at MAAG Pump Systems AG, a company within Dover. Mr. Neuber has also served as the Managing Director and
owner of Neuber Verwaltungs-GmbH since September 2010. Particularly thanks to his wealth of experience in the plastics
industry and his many years of dedication to corporate management, Volker Neuber is a valuable addition to the Supervisory
Board of voxeljet AG. Mr. Neuber completed his studies in business administration and business informatics at the state technical
college in Würzburg, Germany.
Management Board
The following table sets forth the names and functions of the current members of our Management Board, their ages and
their terms as of March 1, 2021:
Name
Dr. Ingo Ederer
Rudolf Franz
Age
Term Ends
June 30, 2024
June 30, 2024
53
53
Position
Chief Executive Officer
Chief Financial Officer, Chief Operating Officer
The business address of the members of our Management Board is the same as our business address: voxeljet AG, Paul-
Lenz-Straße 1a, 86316 Friedberg, Germany.
The following is a brief summary of the business experience of the members of our Management Board:
Dr. Ingo Ederer, born in 1967 in Weilheim, Germany, is one of our founders and is the key inventor of our technology.
He has served as our Chief Executive Officer since 2013. Dr. Ederer co-founded our Company as Generis GmbH in 1999 and
served as our Managing Director from our incorporation in 1999 to 2013, building up the Company from the start-up phase to
become a leading provider of 3D printers for industrial and commercial customers. After graduating with a degree in mechanical
engineering from the Technical University of Munich in 1993, Dr. Ederer started his career as researcher at the department of
precision engineering at the Technical University of Munich where he received his Ph.D. in 2000 with a thesis on piezo-based
micro-jetting devices. He contributes more than 20 years of experience in the 3D printing equipment market and is a holder of
more than 50 patents in the field of 3D printing. His Alma Mater – the Technical University of Munich - awarded him in 2013
with the honorary title “Entrepreneur of Excellence”.
Rudolf Franz, born in 1967 in Friedberg, Germany, has been one of our shareholders through his family fund Franz
Industriebeteiligungen AG since the fourth quarter of 2003. Rudolf Franz joined the team of founders in early 2002. Since then
Rudolf has helped to grow voxeljet AG from a small engineering business with 10 employees to a global business more than 250
employees in 2021. In his role as COO he is focusing on marketing and sales, finance and controlling, risk management,
compliance, legal, HR, business development and investor relations. Since the IPO on NYSE in 2013 and the move to NASDAQ
in 2020, he has been serving as the CFO of our company. Before that he has worked at 3i Group plc. where he was in charge for
technology investments in the German-speaking business area of 3i. He left 3i Group plc. in early 2002 to become part of the
voxeljet Team. Mr. Franz started as investment manager at Technologieholding VC GmbH in early 1995 and became equity
partner in late 1997. Together with the other partners he sold his shares in Technologieholding to 3i Group plc and became part of
the 3i team. Mr. Franz has been a member of the supervisory board of FORUM Media Group GmbH since 2015. Mr. Franz
studied political economics and industrial engineering at the University of Augsburg and the University of Munich and earned a
master’s degree from the University of Applied Science Munich in 1991.
B. COMPENSATION
Compensation of Management Board Members
We have entered into service agreements with the current members of our Management Board. These agreements
generally provide for an annual fixed compensation (base salary), an annual performance award (annual bonus) with a target of
up to 30% of the yearly base salary, as well as a long-term performance award for a three-business-year period (long-term bonus)
with a target of up to 100% of the yearly base salary. The performance targets of the annual and long-term bonuses are a mixture
of certain financial and non-financial targets, such as revenue
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and profitability goals, as well as EBITDA goals. In addition to the fixed and variable remuneration components, under the terms
of their service agreements, the members of our Management Board are entitled to additional benefits (including company car
arrangements, mobile phone, accident and director and officer liability insurance) and reimbursement of necessary and reasonable
expenses.
We believe that the service agreements between us and the members of our Management Board provide for payments
and benefits (including upon termination of employment) that are in line with customary market practice for similar companies
which are operating in our industry.
In 2021, the two members of our Management Board are collectively entitled to receive total compensation of up to
€ 1.3 million, which includes base salary, bonus payments, employee stock options and other compensation as a result of other
benefits as described above. In 2020, the two members of our Management Board collectively received total compensation of
€ 1.1 million, which included base salary, stock options and other compensation.
Compensation of Supervisory Board Members in Fiscal Year 2020
In our annual general meeting on May 31, 2016 the following remuneration system was resolved:
● Ordinary members of the Supervisory Board receive a fixed remuneration in the amount of € 40,000 per annum.
The chairman and vice chairman of the Supervisory Board shall receive a higher fixed remuneration in the amount
of € 80,000 per annum and € 60,000 per annum, respectively.
● We do not pay fees for attendance at Supervisory Board meetings.
●
The members of the Supervisory Board are entitled to reimbursement of their reasonable, documented expenses
(including, but not limited to, travel, board and lodging and telecommunication expenses).
This remuneration system will remain in force until it has been amended or terminated by our general shareholders’
meeting.
C. BOARD PRACTICES
Overview
We are a German stock corporation (Aktiengesellschaft, or AG) with our registered seat in Germany. We are subject to
German legislation on stock corporations, most importantly the German Stock Corporation Act (Aktiengesetz, or AktG). In
accordance with the German Stock Corporation Act (Aktiengesetz), our corporate bodies are the Management Board (Vorstand),
the Supervisory Board (Aufsichtsrat) and the general shareholders’ meeting (Hauptversammlung). Our Management Board and
our Supervisory Board are entirely separate and, as a rule, no individual may simultaneously be a member of both boards.
Our Management Board is responsible for the day-to-day management of our business in accordance with applicable
laws, our articles of association (Satzung) and the Management Board’s internal rules of procedure (Geschäftsordnung). Our
Management Board represents us in our dealings with third parties.
The principal function of our Supervisory Board is to supervise our Management Board. The Supervisory Board is also
responsible for appointing and removing the members of our Management Board and representing us in connection with
transactions between a current or former member of the Management Board and us.
Under German law, members of both boards owe a duty of loyalty and care to us. In carrying out their duties, they are
required to exercise the standard of care of a prudent and diligent businessperson. If they fail to observe the appropriate standard
of care, they may become liable to us.
In carrying out their duties, the members of both boards may take into account a broad range of considerations when
making decisions, including our interests and the interests of our shareholders, employees, creditors and, to a limited extent, the
general public, while respecting the rights of our shareholders to be treated on equal terms.
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Additionally, the Management Board is responsible for implementing an internal monitoring system for risk management
purposes.
Our Supervisory Board has comprehensive monitoring responsibilities. To ensure that our Supervisory Board can carry
out these functions properly, our Management Board must, among other things, regularly report to our Supervisory Board
regarding our current business operations and future business planning (including financial, investment and personnel planning).
In addition, our Supervisory Board is entitled to request special reports from the Management Board at any time.
Under German law, our shareholders have no direct recourse against the members of our Management Board or our
Supervisory Board if they have breached their duty of loyalty and care to us. Apart from insolvency or other special
circumstances, only the Company has the ability to claim damages against the members of our two boards. We may waive these
claims to damages or settle these claims only if at least three years have passed since any violation of a duty occurred and only if
our shareholders approve the waiver or settlement at a shareholders’ meeting with a simple majority of the votes cast; provided
that shareholders who in the aggregate hold one-tenth or more of our share capital do not oppose the waiver or settlement and
have their opposition formally recorded in the meeting’s minutes by a German civil law notary.
The following description, as far as it relates to our articles of association, is based on the articles of association, as last
amended, effective with the registration in the commercial register on February 12, 2021.
Supervisory Board
Our Supervisory Board currently consists of three members, which is the minimum number of members allowed under
German law. As we grow, our Supervisory Board may be required to include employee representatives subject to the provisions
of the German One-Third Employee Representation Act (Drittelbeteiligungsgesetz) or the German Codetermination Act
(Mitbestimmungsgesetz).
Currently, all of the members of our Supervisory Board are elected by the general shareholders’ meeting in accordance
with the provisions of the German Stock Corporation Act (Aktiengesetz). German law does not require the majority of our
Supervisory Board members to be independent. The rules of procedure for our Supervisory Board provide that the Supervisory
Board should be composed of a majority of independent members, as determined by the Supervisory Board. Under the
Supervisory Board’s rules of procedure, a board member is deemed to be independent if such member has no business or
personal relationships with us or the Management Board that could constitute a conflict of interest.
Under German law, the members of a supervisory board may be elected for a term of up to approximately five years,
depending on the dates of the annual general meeting at which the members of the supervisory board are elected, which is the
standard term of office. Reelection, including repeated reelection, is permissible. The shareholders’ meeting may specify a term
of office for individual members or all of the members of our Supervisory Board which is shorter than the standard term of office
and, subject to statutory limits, may set different start and end dates for the terms of members of our Supervisory Board.
The shareholders’ meeting may, at the same time as it elects the members of the Supervisory Board, elect one or more
substitute members. The substitute members replace members who cease to be members of our Supervisory Board and take their
place for the remainder of their respective terms of office. We have not elected any substitute members.
Members of our Supervisory Board may be dismissed at any time during their term of office by a resolution of the
shareholders’ meeting adopted by a simple majority of the votes cast. In addition, any member of our Supervisory Board may
resign at any time by giving one month written notice of his or her resignation to the chairperson of our Supervisory Board (in
case the chairperson resigns, such notice is to be given to the vice chairperson). Our Supervisory Board may agree upon a shorter
notice period. None of the members of the Supervisory Board are eligible to receive any benefits upon termination of their
service on the Supervisory Board.
Our Supervisory Board elects a chairperson and a vice chairperson from its members. The vice chairperson exercises the
chairperson’s rights and obligations whenever the chairperson is unable to do so. On May 29, 2019, Peter
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Nietzer, Dr. Stefan Söhn and Eberhard Weiblen were elected as members of our Supervisory Board by the general shareholders'
meeting for a term that ends with the shareholders’ meeting which resolves on the discharge of the Supervisory Board for fiscal
year 2023. The members of our Supervisory Board have elected Peter Nietzer as chairperson and Dr. Stefan Söhn as vice
chairperson, each for the term of their respective membership on our Supervisory Board. Eberhard Weiblen resigned from his
office as member of the Supervisory Board of the Company for professional reasons with effect from the end of the General
Meeting on June 30, 2020. Following the recommendation of the Compensation and Nomination Committee, the shareholders at
general shareholders' meeting on June 30, 2020 elected Volker Neuber as member of the Supervisory Board from the end of the
Annual General Meeting in 2020 for a term that ends with the shareholders’ meeting which resolves on the discharge of the
Supervisory Board for fiscal year 2023.
The Supervisory Board meets at least twice during the first half and twice during the second half of each calendar year.
Our articles of association and the Supervisory Board’s rules of procedure provide that a quorum of the Supervisory Board
members is present if at least half of its members, but in any case no less than three members, participate in the vote. Members of
our Supervisory Board are deemed present if they participate via telephone or video conference, subject to no member of the
Supervisory Board raising any objection to this type of participation. Any absent member may also participate in the voting by
submitting his or her written vote through another member.
Resolutions of our Supervisory Board are passed by the vote of a simple majority unless otherwise required by law, our
articles of association or the rules of procedure of our Supervisory Board. In the event of a tie, the chairperson casts the tie-
breaking vote.
Our Supervisory Board is not permitted to make management decisions, but, in accordance with German law and in
addition to its statutory responsibilities, it has determined that the following matters, among others, require its prior consent:
●
●
●
●
●
●
●
●
●
any material changes to our business strategy;
the purchase or sale of real estate or legal entities or the purchase, sale, creation, extension, reduction or termination
of business activities, including tangible or intangible assets, if the relevant price or value, in each case, exceeds
€ 50,000;
the purchase, sale or creation of joint ventures;
the termination of, or amendment to, consulting, advisory or other service agreements, if our costs or obligations
associated with such agreement exceed € 50,000 per year or € 250,000 in the aggregate;
the termination of, or amendment to, operating leases, land leases or rental agreements in relation to real estate,
buildings or similar objects, if our obligations associated with such agreement exceed € 50,000 per year or
€ 250,000 in the aggregate;
expenditures or capital investments exceeding € 50,000 in each case;
any hiring, dismissal or modification of an employment agreement of any executive manager, provided that their
aggregate cash remuneration (including cash bonuses) exceeds € 75,000;
any material change or amendment to our code of conduct; and
the approval of our budget.
Our Supervisory Board may designate further types of actions requiring its approval.
Section 2(2) sentence 2 of the rules of procedure of our Supervisory Board provides that a Supervisory Board member
may not continue to serve on our Supervisory Board past his or her 75th birthday.
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Supervisory Board Practices
Decisions are generally made by our Supervisory Board as a whole; however, decisions on certain matters may be
delegated to committees of our Supervisory Board to the extent permitted by law. The chairperson, or if he or she is prevented
from doing so, the vice chairperson, chairs the meetings of the Supervisory Board and determines the order in which the agenda
items are discussed, the method and order of the voting, any adjournment of the discussion and passing of resolutions on
individual agenda items after a due assessment of the circumstances.
Pursuant to Section 107(3) AktG, the supervisory board may form committees from among its members and charge
them with the performance of specific tasks. The committees’ tasks, authorizations and processes are determined by the
supervisory board. Where permissible by law, important powers of the supervisory board may also be transferred to committees.
Under Article 7 no.1 of its internal rules of procedure, the supervisory board has set up and appointed a Compensation
and Nomination Committee and an Audit Committee.
Compensation and Nomination Committee
Pursuant to Article 9 of the rules of procedure of our Supervisory Board, the Compensation and Nomination Committee
prepares hiring and personnel decisions for approval by the Supervisory Board and performs the following functions:
●
●
●
●
●
●
●
preparation of the resolutions of the Supervisory Board regarding the conclusion, alteration and termination of
service contracts of members of the Management Board within the framework of the compensation system adopted
by the Supervisory Board;
preparation of the resolutions of the Supervisory Board to file an application to the court to reduce the
compensation paid to the Management Board members under Section 87 (2) AktG;
preparation of the resolutions of the Supervisory Board regarding the framework of the compensation scheme of the
Management Board, including its essential contractual elements, and providing the Supervisory Board with
information necessary for it to review this compensation scheme on a regular basis;
representation of the Company vis-à-vis former members of the Management Board under Section 112 AktG;
granting consent for secondary occupations and for other activities of Management Board members under
Section 88 AktG;
approval of agreements with Supervisory Board members under Section 114 AktG; and
proposing suitable candidates as Supervisory Board members to the general shareholders’ meeting in case of
elections of Supervisory Board members.
The Compensation and Nomination Committee monitors the Management Board’s adherence to the rules of procedure
of the Management Board. The rules of procedure of the Management Board contain, among other things, obligations for the
Management Board to provide certain information to the Compensation and Nomination Committee.
All current members of the Supervisory Board are members of the Compensation and Nomination Committee. Our
Supervisory Board has determined that each member of the Compensation and Nomination Committee satisfies the independence
requirements of the NASDAQ Listing Rules.
Audit Committee
According to Article 10 of the rules of procedure of our Supervisory Board, our Audit Committee assists the
Supervisory Board in overseeing the accuracy and integrity of our accounting and financial reporting processes and audits
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of our financial statements, the effectiveness of the internal control system and our compliance with legal and regulatory
requirements, the independent auditors’ qualifications and independence and the performance of the independent auditors.
The Audit Committee’s duties and responsibilities to carry out its purposes include, among others:
●
●
●
●
●
●
the review of our accounting processes;
the review of the effectiveness of our internal systems of control, risk management and compliance;
the review and the handling of matters and processes related to auditor independence;
the commissioning of the auditors to conduct the audit, agreeing on additional services to be provided by the
auditors under the auditor’s assignment, the establishment of the scope and the main review points of the audit and
agreeing upon a fee with the auditors;
the preparation of the Supervisory Board’s resolution on our financial statements; and
the establishment of procedures for (i) the receipt, retention and treatment of complaints we receive regarding
accounting, internal accounting controls or auditing matters and (ii) the confidential, anonymous submission by our
employees of concerns regarding questionable accounting or auditing matters.
Under German law, each member of the Supervisory Board is obliged to carry out his or her duties and responsibilities
personally, and such duties and responsibilities cannot be generally and permanently delegated to third parties. However, the
Supervisory Board and its committees, including the Audit Committee, have the right to appoint third party experts for the review
and analysis of specific circumstances in accordance with its control and supervision duties under German law. For example, the
Supervisory Board could retain an audit firm and/or legal counsel if it wants to investigate potentially illegal activities occurring
in a foreign subsidiary. We will bear the costs for any such independent experts that are retained by the Supervisory Board or any
of its committees, including the Audit Committee.
The Audit Committee consists of three members. The chairman of the Audit Committee shall not be a former member
of our management board whose appointment ended less than two years prior to his or her appointment as chairman of the Audit
Committee.
Furthermore, the chairman of the Audit Committee shall have special knowledge and experience in the application of
accounting principles and internal control procedures and shall therefore qualify as an “audit committee financial expert” as
defined under the Exchange Act.
Management Board
Overview
Under German law and the Company’s articles of association, the Management Board must consist of one or more
persons and the Supervisory Board determines the exact number of members of the Management Board. The Supervisory Board
also appoints the chairman and the deputy chairman of the Management Board, if any. Currently, the Management Board consists
of two members, with Dr. Ingo Ederer appointed as Chief Executive Officer and Rudolf Franz appointed as Chief Financial
Officer and Chief Operating Officer.
Members of our Management Board conduct the daily business of our Company in accordance with applicable laws, our
articles of association and the rules of procedure for the Management Board. The Management Board is in general responsible for
the management of our Company and for handling our daily business relations with third parties, the internal organization of our
business and communications with our shareholders. In addition, the Management Board has the responsibility for:
●
●
the preparation of our annual financial statements;
the making of a proposal to our shareholders’ meeting on how our profits (if any) should be allocated (such
proposal to be submitted simultaneously to the Supervisory Board); and
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●
regular reporting to the Supervisory Board on our current operating and financial performance, our budgeting and
planning processes and our performance under them and on future business planning (including strategic, financial,
investment and personnel planning).
●
the implementation and oversight of internal controls, risk management and compliance program
The Supervisory Board appoints the members of the Management Board for a maximum term of five years.
Reappointment or extension of the term for up to five years is permissible. For date of expiration of the current term of office for
our Management Board members, and the period during which they have served in office, see “Item 6. Directors, Senior
Management and Employees—B. Directors and senior management.” The Supervisory Board may revoke the appointment of a
Management Board member prior to the expiration of his or her term for good cause only, such as for gross breach of fiduciary
duties or if the shareholders’ meeting passes a vote of no-confidence with respect to such member, unless the Supervisory Board
deems the no-confidence vote to be clearly unreasonable. The supervisory board is also responsible for entering into, amending
and terminating service agreements with the Management Board members and, in general, for representing us in disputes with the
Management Board, both in and out of court. The Supervisory Board may assign these duties to a committee of the Supervisory
Board, except in certain cases where the approval of the entire Supervisory Board is required, such as the approval of the
compensation of members of our Management Board and the reduction of the compensation of members of our Management
Board upon a deterioration of our situation, which includes, among other things, a bankruptcy or the layoff of a significant
number of employees.
According to our articles of association, as long as there are two or more Management Board members, either (i) two
Management Board members or (ii) one Management Board member acting jointly with an authorized representative (Prokurist)
have the authority to act on our behalf. The Supervisory Board may grant any Management Board member the right to represent
us alone and may release any member of the Management Board from the restrictions on multiple representations under
Section 181, 2nd Alternative of the German Civil Code (Bürgerliches Gesetzbuch).
Under the Management Board member service agreements and by a special resolution of the Supervisory Board, all
members of the Management Board have been granted authority to represent us alone and were released from the restrictions
imposed by Section 181, 2nd Alternative of the German Civil Code.
The Management Board has the authority to determine our business areas and operating segments and resolve upon the
internal allocation of responsibility for certain business areas and operating segments among the various members of the
Management Board by setting up a business responsibility plan (Geschäftsverteilungsplan). Since we currently have only two
members of the Management Board, we do not have a business responsibility plan in place at this time.
Section 3(7) sentence 3 of the rules of procedure of our Supervisory Board provides that a Management Board member
shall not continue to serve on our management board past his or her 65th birthday.
Service Agreements
Dr. Ingo Ederer and Rudolf Franz
By resolution of its Supervisory Board dated November 12, 2020, the current members of the voxeljet AG Management
Board, Dr. Ingo Ederer and Rudolf Franz, were reappointed as members of the Management Board for a new three year term
from July 1, 2021 until June 30, 2024. Dr. Ingo Ederer and Rudolf Franz have each accepted such new appointment.
Following the reappointment of Dr. Ingo Ederer and Rudolf Franz as members of the management board, each of Dr.
Ingo Ederer and Rudolf Franz entered into a new three year service agreement effective as of July 1, 2021. The current service
agreements will expire at the end of their current term of office on June 30, 2021.
The main terms of the service agreements are summarized below. The terms of the service agreements of Dr. Ingo
Ederer and Rudolf Franz are identical with only a few deviating provisions regarding the company car and social security
payments.
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Each service agreement can be terminated prior to June 30, 2024 only, (i) by the member of the management board
exercising a special termination right (Sonderkündigungsrecht) in case of a change of control of voxeljet (as defined in the
service agreement), if and to the extent such change of control leads to a material change of the position of the member of the
management board, if (ii) the member of the management board is terminated by the Company for cause or if (iii) the member of
the management board terminates the service agreement for cause.
If a member of the management board terminates the service agreement exercising the special termination right
(Sonderkündigungsrecht) in case of a change of control, the member of the management board is entitled to a compensation
payment. Such compensation payment consists of the sum of 50% of the total remuneration payable to the member of the
management board over the outstanding full term of the service agreement (fixed plus variable remuneration assuming the full
achievement of all bonus targets) and a lump sum payment amounting to two annual fixed salaries. The compensation payment is
capped at the amount of € 1,425,000.
Under German law, a contract can be terminated for cause only in exceptional circumstances (i.e., if the continuation of
the contractual relationship is unacceptable for the terminating party). Termination for cause generally requires that a party
repeatedly and severely breaches its contractual duties. To the extent the employment terminates during a fiscal year, the member
of the management board is entitled to a pro rata portion of the bonus that reflects the percentage of the year that the member of
the management board worked for the Company.
Furthermore, each service agreement contains a covenant pursuant to which each member of the management board has
agreed not to compete with the Company for a period of two years after the termination of the service agreement. Under German
law, a non-compete covenant is only valid if the employee is compensated during the term of the non-compete obligation. As
compensation for the non-compete covenant, each member of the management board will receive 100% of his fixed salary (but in
no event less than 50% of the total compensation received in the preceding year) for the entire two year term of the non-compete
covenant. If the service agreement of a member of the management board is terminated for cause, the Company is not obligated
to pay the compensation for the non-compete covenant, so long as the Company provides the member of the management board
with a written statement disclaiming the Company’s obligation to pay this compensation within one month after the termination.
The new service agreements provide for an annual fixed compensation (base salary), an annual performance award
(annual bonus) with a target of up to 30% of the yearly base salary, as well as a long-term performance award for a three-
business-year period (long-term bonus) with a target of up to 100% of the yearly base salary. The performance targets of the
annual and long-term bonuses are a mixture of certain financial and non-financial targets, such as revenue, profitability and
liquidity targets as well as personal goals. In addition to the fixed and variable remuneration components, each member of the
management board is entitled to additional benefits (including company car arrangements, mobile phone, accident and director
and officer liability insurance) and reimbursement of necessary and reasonable expenses. In addition, the supervisory board can
grant stock options to the members of the management board on the basis of a stock option plan.
German Corporate Governance Code
The German Corporate Governance Code (Deutscher Corporate Governance Kodex) was originally published by the
German Ministry of Justice (Bundesministerium der Justiz) in 2002. The applicable version for fiscal year 2020 is the German
Corporate Governance Code as amended on December 16, 2019 and published in the German Federal Gazette (Bundesanzeiger)
on March 20, 2020. The Corporate Governance Code contains recommendations (Empfehlungen) and suggestions (Anregungen)
relating to the management and supervision of German companies that are listed on a stock exchange. It follows internationally
and nationally recognized standards for good and responsible corporate governance. The purpose of the Corporate Governance
Code is to make the German system of corporate governance transparent for investors. The Corporate Governance Code includes
corporate governance recommendations and suggestions with respect to shareholders and general shareholders’ meetings, the
management and supervisory boards, transparency, accounting policies, and auditing.
There is no obligation to comply with the recommendations or suggestions of the Corporate Governance Code. The
German Stock Corporation Act (Aktiengesetz) requires only that the management board and supervisory board of a German listed
company issue an annual declaration that either (i) states that the Company has complied with the recommendations of the
Corporate Governance Code or (ii) lists the recommendations that the Company has not complied with and explains its reasons
for deviating from the recommendations of the Corporate Governance Code (so called
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Entsprechenserklärung). In addition, a listed company is also required to state in this annual declaration whether it intends to
comply with the recommendations or list the recommendations it does not plan to comply with in the future. The current
declaration needs to be published permanently on the Company’s website. In addition, the Corporate Governance Code
recommends that the old declarations remain on the website for five years. If the Company changes its policy on certain
recommendations between such annual declarations, it must disclose this fact and explain its reasons for deviating from the
recommendations. Non-compliance with suggestions contained in the Corporate Governance Code need not be disclosed.
The Corporate Governance Code applies to us and we are required to issue the annual declarations described above. On
December 31, 2013, we issued and published our first annual compliance declaration and on December 15, 2014 we published
our second annual compliance declaration. Our third and fourth annual compliance declaration was published on December 16,
2015 and December 14, 2016, respectively. Our fifth and sixths annual compliance declaration was published on December 12,
2017 and December 14, 2018. Our seventh and eighth annual compliance declaration was published on December 10, 2019 and
December 18, 2020. You can find our annual compliance declarations on our website at investor.voxeljet.com. This website
address is included in this annual report as an inactive textual reference only. The information and other content appearing on our
website are not part of this annual report.
According to their respective rules of procedure, our Management Board and the Supervisory Board are obliged to
comply with the Corporate Governance Code except for such provisions which they have explicitly listed in their annual
declaration and for which they have stated that they do not comply with.
In particular, we adhere to the following significant recommendations of the Corporate Governance Code: (i) the
Supervisory Board shall form a Nomination Committee (Nominierungsausschuss), composed exclusively of shareholder
representatives, which names suitable candidates to the Supervisory Board for its proposals to the general shareholders’ meeting;
(ii) the Management Board shall institute an appropriate compliance management system reflecting the enterprise’s risk situation,
and disclose the main features of this system; and (iii) between Supervisory Board meetings, the chairman of the Supervisory
Board shall be in regular contact with the Management Board in order to discuss issues of strategy, business development, the
risk situation, risk management and compliance of the enterprise.
However, we expect to deviate from the recommendations and suggestions of the Corporate Governance Code in
various respects. All deviations from the Corporate Governance Code recommendations will be published in the official annual
declarations, the current declaration was published on December 18, 2020.
D. EMPLOYEES
The majority of our current employees are located in Germany, paid in Euros and subject to German labor law. A few of
our employees are members of a labor union; however, voxeljet AG is not bound by any collective bargaining agreement. On
June 23,
According to the German
Betriebsverfassungsgesetz (BetrVG), § 9, the workers’ council has seven members. In its inaugural meeting on July 7, 2016, the
workers’ council has officially started its work for the employees of the voxeljet AG.
our employees voted for the first workers’ council of voxeljet AG.
2016,
The table below sets forth the number of employees we had as of December 31 of each of the years represented:
Management board (Vorstand)
Managing director
Research and development
Systems
Services
Sales and marketing
Administration
Total
December 31,
2020
2019
2018
2
3
47
70
42
38
49
251
63
2
4
48
89
48
45
61
297
2
4
51
95
56
53
66
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E. SHARE OWNERSHIP
Supervisory Board
As of March 1, 2021, Supervisory Board member Volker Neuber holds 77,821 of our ADSs, which represented
approximately 1.3% of the Company’s outstanding ADSs, based on 5,900,584 ADSs outstanding as of March 1, 2021. As of
March 1, 2021, none of the other members of the Supervisory Board held any of our ordinary shares or ADSs.
Management Board
Our CEO and founder, Dr. Ingo Ederer, holds 578,695 of our ordinary shares, which represented 9.7% of our ordinary
shares as of March 1, 2021. In addition, he holds 23,346 ADSs which have not been converted to ordinary shares. As of March 1,
2021, Dr. Ederer also beneficially owns 69,750 ordinary shares underlying equity settled stock options that vest on April 7, 2021
(the “CEO Options”). The exercise price of the CEO Options is $13.90 and the CEO Options have an expiration date of April 7,
2027. The aggregate number of ADSs beneficially owned by Dr. Ingo Ederer represents approximately 11.3% of the Company’s
outstanding ADSs, based on 5,970,334 ADSs outstanding as of March 1, 2021, including the shares underlying the CEO Options.
Our CFO and COO, Rudolf Franz, holds 259,415 of our ordinary shares through Franz Industriebeteiligungen AG,
which is wholly owned by Mr. Franz and members of his family, which represented 4.3% of our ordinary shares as of March 1,
2021. In addition, Franz Industriebeteiligungen AG holds 23,346 ADSs which have not been converted to ordinary shares. As of
March 1, 2021, Mr. Franz also beneficially owns 69,750 ordinary shares underlying equity settled stock options that vest on April
7, 2021 (the “CFO Options”). The exercise price of the CFO Options is $13.90 and the CFO Options have an expiration date of
April 7, 2027. The aggregate number of ADSs beneficially owned by Mr. Franz represents approximately 5.9% of the
Company’s outstanding ADSs, based on 5,970,334 ADSs outstanding as of March 1, 2021, including shares underlying the CFO
Options.
On April 7, 2017 and on April 12, 2018, each member of the Management Board was granted with 69,750 and 23,250
shares of equity settled stock options, respectively. No shares of equity settled stock options were granted to the members of the
Management Board in 2020.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A. MAJOR SHAREHOLDERS
The following table sets forth information, as of March 1, 2021, regarding the beneficial ownership of our ordinary
shares.
5% Shareholders and Members of our
Supervisory and Management Boards
Dr. Ingo Ederer
AWM Investment Company, Inc. (2)
Rudolf Franz(3)
Peter Nietzer
Dr. Stefan Söhn
Volker Neuber(4)
All Members of our Supervisory and Management Boards as a Group (5 persons):
Number
Percent
671,791 (1)
561,978
352,511 (1)
--
--
77,821
1,102,123 (5)
11.3% (1)
9.5%
5.9% (1)
--
--
1.3%
18.7% (6)
In computing the number of shares beneficially owned by a person and the percentage ownership of that person, we
have included shares that the person has the right to acquire within 60 days of March 1, 2021, including through the vesting of
deferred share awards, exercise of any option, warrant or other right or the conversion of any other security. These shares,
however, are not included in the computation of the percentage ownership of any other person. Unless otherwise indicated, the
business address of each such person is c/o voxeljet AG, Paul-Lenz Straße 1a, 86316 Friedberg, Germany. As of March 1, 2021,
Startkapital-Fonds Augsburg GmbH and Franz Industriebeteiligungen AG no longer beneficially own more than 5% of ordinary
shares.
Except as otherwise indicated, percentages of ownership are based on 5,900,484 ordinary shares outstanding as of
March 1, 2021. Except as otherwise indicated, the persons named in this table have sole voting and investment power
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with respect to all ordinary shares shown as beneficially owned by them, subject to community property laws where applicable
and to the information contained in the footnotes to this table.
(1) This number includes the 23,346 ADSs acquired by each of Dr. Ingo Ederer and Franz Industriebeteiligungen AG
through the October 2018 offering which have not been converted to ordinary shares. The 23,346 ADSs are reported in
this table on an as converted basis into 23,346 ordinary shares using the one-to-one conversion ratio. This number also
includes 69,750 ordinary shares, that may be acquired by each of Dr. Ingo Ederer and Rudolf Franz, underlying the CEO
Options and CFO Options, respectively, that vest on April 7, 2021. The percentage of ownership by Dr. Ingo Ederer and
Rudolf Franz are based on 5,970,334 shares outstanding as of March 1, 2021, including shares underlying the CEO
Options and CFO Options, as applicable.
(2) Based on the Schedule 13G/A filed by AWM Investment Company, Inc. filed on February 11, 2021. The share
ownership that was reported in ADSs has been reported on an as converted basis to the underlying ordinary shares using
the one-to-one conversion ratio, converting the reported 561,978 ADSs to 561,978 ordinary shares.
(3) Consists of ordinary shares and ADSs held by Franz Industriebeteiligungen AG and the CFO Options. Franz
Industriebeteiligungen AG is owned by Rudof Franz (40%), his wife Bärbel Franz (40%), his son Simon Franz (10%)
and his daughter Lisa Franz (10%). Rudolf Franz and Bärbel Franz are the Managing Directors of Franz
Industriebeteiligungen AG and have shared power to vote, hold and dispose of the shares held by it. The address for
Franz Industriebeteiligungen AG is Am Silbermannpark 1b, 86161 Augsburg, Germany.
(4) Consists entirely of ADSs held by Neuber Verwaltungs-GmbH, which is fully owned by Volker Neuber. Volker Neuber
is the Managing Director of Neuber Verwaltungs-GmbH and has the sole power to vote, hold and dispose of shares held
by it. The address for Neuber Verwaltungs-GmbH is Zobelstr. 17, 86153 Augsburg, Germany.
(5) This number includes the 23,346 ADSs acquired by each of Dr. Ingo Ederer and Franz Industriebeteiligungen AG
through the October 2018 offering which have not been converted to ordinary shares. The 23,346 ADSs are reported in
this table on an as converted basis into 23,346 ordinary shares using the one-to-one conversion ratio. This number also
includes the aggregate of 139,500 ordinary shares underlying the CEO Options and CFO Options, that may be acquired
by Dr. Ingo Ederer and Rudolf Franz, that vest on April 7, 2021.
(6) The percentage of ownership by all members of our Supervisory and Management Boards as a group is based on
5,900,484 ordinary shares outstanding as of March 1, 2021.
As of March 1, 2021, there were twelve holders of record entered in our German share register. Citibank, N.A., the
depositary, is a U.S. resident and the holder of record of the ordinary shares that underlie our ADSs. Effective, August 14, 2020,
we changed the ratio of our ADSs to ordinary shares from each ADS representing one-fifth (1/5) of one ordinary share (5:1) to
each ADS representing one ordinary share (1:1). As of March 1, 2021, Citibank, N.A. held 4,730,844 ordinary shares
representing 80.2% of the Company’s issued share capital held at that date. Other than Citibank, N.A., we do not believe that any
of our other holders of record entered in our share register is a U.S. resident. The number of holders of record is based
exclusively upon our share register and does not address whether a share or shares may be held by the holder of record on behalf
of more than one person or institution who may be deemed to be the beneficial owner of a share or shares in our Company.
None of our shareholders will have different voting rights from other shareholders. We are not aware of any
arrangement that may, at a subsequent date, result in a change of control of our Company.
B. RELATED PARTY TRANSACTIONS
Since January 1, 2018, there has not been, nor is there currently proposed, any material transaction or series of similar
material transactions to which we were or are a party in which any of the members of our Supervisory Board and Management
Board, executive officers, holders of more than 10% of any class of our voting securities, or any member of the immediate family
of any of the foregoing persons, had or will have a direct or indirect material interest, other than the compensation and
shareholding arrangements we describe where required in “Item 6. Directors, Senior Management and Employees,” and the
transactions we describe below.
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Transactions with Franz Industriebeteiligungen AG comprise the rental of office space in Augsburg, Germany. Rental
expenses amounted to kEUR 3, kEUR 2, and kEUR 2 in 2020, 2019 and 2018, respectively. The rental of office space is ongoing
and will continue in 2021. In addition, Franz Industriebeteiligungen AG received payments related to the use of certain paintings
which are placed in the administrative building in Friedberg. Associated rental expenses amounted to kEUR 2 in 2018. At the
beginning of 2019, voxeljet acquired those paintings at a price of kEUR 2 and consequently the rental agreement pertaining to the
paintings was terminated.
Further, voxeljet acquired goods amounting to kEUR 0, kEUR 0, and kEUR 7 in 2020, 2019 and 2018, respectively
from ‘Schlosserei und Metallbau Ederer’, which is owned by the brother of Dr. Ingo Ederer, the Chief Executive Officer of
voxeljet.
In addition, voxeljet received logistics services amounting to kEUR 25, kEUR 56 and kEUR 74 in 2020, 2019 and 2018,
respectively from ‘Andreas Schmid Logistik’, where our Supervisory Board member Dr. Stefan Söhn served as Chief Financial
Officer until December 2020.
Moreover, voxeljet received orders amounting to kEUR 25, kEUR 164 and kEUR 175 in 2020, 2019 and 2018,
respectively from ‘Suzhou Meimai Fast Manufacturing Technology Co., Ltd., which is our minority shareholder for voxeljet
China.
Further, voxeljet received orders amounting to kEUR 0, kEUR 13 and kEUR 0 in 2020, 2019 and 2018, respectively
from ‘DSCS Digital Supply Chain Solutions GmbH’, which is an associated company of which we own 33.3%.
In addition, voxeljet employs Michele Neuber as an intern. Michele Neuber is the son of Volker Neuber, who has been a
member of our Supervisory Board since July 2020. He received a salary of kEUR 2 and kEUR 2 in 2020 and 2019, respectively.
voxeljet employed Simon Franz, who is the son of voxeljet’s Chief Financial Officer Rudolf Franz, as an intern until
July 31, 2019. He received a salary of kEUR 9 and kEUR 12 in 2019 and 2018, respectively.
All related party transactions, voxeljet entered into, were made on an arm’s length basis.
Service Agreements
We have entered into service agreements with the members of our Management Board. See “Item 6. Directors, Senior
Management and Employees—C. Board Practices.”
C. INTERESTS OF EXPERTS AND COUNSEL
Not applicable.
ITEM 8. FINANCIAL INFORMATION
A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION
See “Item 18. Financial Statements.”
Legal Proceedings
From time to time, we may be subject to various claims or legal, arbitration or administrative proceedings that arise in
the ordinary course of our business. We are currently not a party to any legal, arbitration or administrative proceedings which, in
the opinion of our management, may have or have had in the recent past, significant effects on our business, financial condition
or results of operations, including governmental proceedings pending or known to be contemplated.
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Dividend Policy
Neither we nor our legal predecessor, Voxeljet Technology GmbH, have ever declared or paid any cash dividends on
our ordinary shares, and we have no present intention of declaring or paying any dividends in the foreseeable future. Any
recommendation by our Management and Supervisory Boards to pay dividends, subject to compliance with applicable law and
any contractual provisions that restrict or limit our ability to pay dividends, including under agreements for indebtedness that we
may incur, will depend on many factors, including our financial condition, results of operations, legal requirements, capital
requirements, business prospects and other factors that our Management and Supervisory Boards deem relevant.
All of our shares represented by ADSs have the same dividend rights as all of our other outstanding shares. Any
distribution of dividends proposed by our Management and Supervisory Boards requires the approval of our shareholders at a
shareholders’ meeting. See “Item 10. Additional Information—B. Memorandum and Articles of Association,” which incorporates
by reference certain sections of our registration statement on Form F-1 (Registration No. 333-191213) that explain in more detail
the procedures we must follow and the German law provisions that determine whether we are entitled to declare a dividend.
For information regarding the German withholding tax applicable to dividends and related United States refund
procedures, see “Item 10. Additional Information—E. Taxation—German Taxation of ADSs.”
B. SIGNIFICANT CHANGES
Except as set forth elsewhere in this annual report, no significant changes have occurred since December 31, 2020.
ITEM 9. THE OFFER AND LISTING
A. OFFER AND LISTING DETAILS
As previously disclosed, effective August 14, 2020 we changed the ratio of our ADSs to ordinary shares from each ADS
representing one-fifth (1/5) of one ordinary share (5:1) to each ADS representing one ordinary share (1:1). Further, effective
August 28, 2020, after market close we voluntarily transfered the listing of our ADSs from the NYSE to the NASDAQ. Our
ADSs began trading as a NASDAQ-listed security at market open on August 31, 2020, and have continued to be listed under the
ticker symbol “VJET.”
B. PLAN OF DISTRIBUTION
Not applicable.
C. MARKETS
Our ADSs are listed on the NASDAQ under the symbol “VJET.”
D. SELLING SHAREHOLDER
Not applicable.
E. DILUTION
Not applicable.
F. EXPENSES OF THE ISSUE
Not applicable.
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ITEM 10. ADDITIONAL INFORMATION
A. SHARE CAPITAL
Not applicable.
B. MEMORANDUM AND ARTICLES OF ASSOCIATION
See the descriptions included in our registration statement on Form F-1 (Registration No. 333-191213) under the headings
“Description of Share Capital” and “Description of American Depositary Shares,” which are incorporated herein by reference.
Registration of the Company with Commercial Register
We are a German stock corporation (Aktiengesellschaft, or AG) that is organized under the laws of Germany. On
July 11, 2013, our Company was registered in the commercial register of Augsburg, Germany under the number HRB 27999.
C. MATERIAL CONTRACTS
We have not entered into any material contracts other than in the ordinary course of business and other than those
described in “Item 4. Information on the Company—Business Overview,” “Item 7. Major Shareholders and Related Party
Transactions—Related Party Transactions,” or elsewhere in this annual report.
D. EXCHANGE CONTROLS
There are currently no legal restrictions in Germany on international capital movements and foreign-exchange
transactions, except in limited embargo circumstances (Teilembargo) relating to certain areas, entities or persons as a result of
applicable resolutions adopted by the United Nations and the EU. Restrictions currently exist with respect to, among others,
Belarus, Congo, Egypt, Guinea, Guinea-Bissau, Iran, Iraq, Lebanon, Libya, North Korea, Somalia, South Sudan, Sudan, Syria,
Tunisia, and Zimbabwe.
For statistical purposes, there are, however, limited notification requirements regarding transactions involving cross-
border monetary transfers. With some exceptions, every corporation or individual residing in Germany must report to the German
Central Bank (Deutsche Bundesbank) (i) any payment received from, or made to, a non-resident corporation or individual that
exceeds € 12,500 (or the equivalent in a foreign currency) and (ii) any claim against, or liability payable to, a non-resident
corporation or individual, if such claims or liabilities exceed € 5 million (or the equivalent in a foreign currency) in the aggregate
at the end of any calendar month. Payments include cash payments made by means of direct debit, checks and bills, remittances
denominated in Euros and other currencies made through financial institutions, as well as netting and clearing arrangements.
E. TAXATION
German Taxation
The following discussion describes the material German tax consequences for a holder that is a U.S. person of
acquiring, owning, and disposing of the ADSs. A holder that is a U.S. person (“U.S. treaty beneficiary”) is a resident of the
United States for purposes of the Agreement between the Federal Republic of Germany and United States of America for the
Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital as of June 4,
2008 (Abkommen zwischen der Bundesrepublik Deutschland und den Vereinigten Staaten von Amerika zur Vermeidung der
Doppelbesteuerung und zur Verhinderung der Steuerverkürzung auf dem Gebiet der Steuern vom Einkommen und vom Vermögen
und einiger anderer Steuern in der Fassung vom 4. Juni 2008) (the “Treaty”) who is fully eligible for benefits under the Treaty.
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A holder will be a U.S. treaty beneficiary entitled to full Treaty benefits in respect of the ADSs if it is, inter alia:
●
●
●
●
the beneficial owner of the ADSs (and the dividends paid with respect thereto);
a citizen or an individual resident of the United States, a corporation or other entity treated as a corporation for U.S.
federal income tax purposes created or organized under the laws of the United States or any state thereof or the
District of Columbia, an estate the income of which is subject to U.S. federal income tax without regard to its
source, or a trust if a court within the United States is able to exercise primary supervision over the administration
of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust, or the
trust has elected to be treated as a domestic trust for U.S. federal income tax purposes;
not also a resident of Germany for German tax purposes; and
not subject to the limitation on benefits (i.e., anti-treaty shopping) article of the Treaty that applies in limited
circumstances.
Special rules apply to pension funds and certain other tax-exempt investors.
This discussion does not address the treatment of ADSs that are (i) held in connection with a permanent establishment
or fixed base through which a U.S. treaty beneficiary carries on business or performs personal services in Germany or (ii) part of
business assets for which a permanent representative in Germany has been appointed.
With the exception of the subsection “—General Rules for the Taxation of Shareholders Tax Resident in Germany”
below, which provides an overview of dividend taxation with regards to the general principles applicable on tax residents in
Germany, this discussion applies only to U.S. treaty beneficiaries that acquired ADSs in the initial offering and hold ADSs as
capital assets for U.S. federal income tax purposes. It does not purport to be a comprehensive description of all tax considerations
that may be relevant to a decision to purchase ADSs by any particular investor, including tax considerations that arise from rules
of general application to all taxpayers or to certain classes of taxpayers that are generally assumed to be known by investors. In
particular, this discussion does not address tax considerations applicable to a U.S. treaty beneficiary that may be subject to special
tax rules, including, without limitation, a dealer in securities or currencies, a trader in securities that elects to use a mark-to-
market method of accounting for securities holdings, banks, thrifts, or other financial institutions, U.S. expatriates, an insurance
company, a tax-exempt organization, a person that holds ADSs as part of a hedge, straddle, conversion or other integrated
transaction for tax purposes, a person that purchases or sells ordinary shares or ADSs as part of a wash sale for tax purposes, a
person whose functional currency for tax purposes is not the U.S. dollar, a person subject to the U.S. alternative minimum tax, or
a person that owns or is deemed to own 10% or more of the Company’s voting stock. In addition, the discussion does not address
tax consequences to an entity treated as a partnership (or other pass-through entity) for U.S. federal income tax purposes that
holds ADSs. The U.S. federal income tax treatment of each partner of the partnership generally will depend upon the status of the
partner and the activities of the partnership. Prospective purchasers that are partners in a partnership holding ADSs should consult
their own tax advisors.
This discussion is based on German tax laws, including, but not limited to interpretation circulars issued by German tax
authorities, which are not binding on the courts, and the Treaty. It is based upon tax laws in effect at the time of preparation of
this annual report (March 2021). These laws are subject to change, possibly on a retroactive basis. There is no assurance that
German tax authorities will not challenge one or more of the tax consequences described in this discussion.
In addition, this discussion is based upon the assumption that each obligation in the deposit agreement and any related
agreement will be performed in accordance with its terms. It does not purport to be a comprehensive or exhaustive description of
all German or U.S. tax considerations that may be of relevance in the context of acquiring, owning and disposing of ADSs.
Prospective holders of ADSs should consult their own tax advisors regarding the German tax consequences of the
purchase, ownership and disposition of ADSs in light of their particular circumstances, including the effect of any state, local, or
other foreign or domestic laws or changes in tax law or interpretation.
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German Taxation of ADSs
General
As of the date hereof, no published German tax court cases exist as to the German tax treatment of American Depositary
Receipts (“ADRs”) or ADSs, but based on the interpretation circular regarding the taxation of ADRs issued by the German
Federal Ministry of Finance (BMF-Schreiben) (dated May 24, 2013, reference number IV C 1-S2204/12/10003) (the “ADR Tax
Circular”), for German tax purposes, although it is not free from doubt, the ADSs should represent a beneficial ownership interest
in the underlying shares and qualify as ADRs for the purpose of the ADR Tax Circular. If the ADSs qualify as ADRs under the
ADR Tax Circular, dividends would accordingly be attributable to U.S. treaty beneficiaries of the ADSs for tax purposes, and not
to the legal owner of the ordinary shares (i.e., the financial institution on behalf of whom the ordinary shares are stored at a
domestic depository for the ADS holders), and U.S. treaty beneficiaries would be treated as holding an interest in the Company’s
ordinary shares for German tax purposes. However, investors should note that interpretation circulars published by the German
tax administration (including the ADR Tax Circular) are not binding on German courts, including German tax courts, and it is
unclear whether a German tax court would follow the ADR Tax Circular in determining the German tax treatment of ADRs or
ADSs. For the purpose of this German tax section it is assumed that the ADSs qualify as ADRs within the meaning of the ADR
Tax Circular.
German Taxation of Dividends and Capital Gains
General Rules for the Taxation of Shareholders Tax Resident in Germany
This subsection provides an overview of dividend taxation with regards to the general principles applicable on tax
residents in Germany.
The German dividend and capital gains taxation rules applicable to German tax residents require a distinction between
shares held as private assets (Privat-/Kapitalvermögen) and shares held as business assets (Betriebsvermögen).
In case the shares are held as private assets, dividends and capital gains are taxed as investment income and are
principally subject to 25% German flat income tax on capital income (Abgeltungsteuer) (plus a 5.5% solidarity surcharge
(Solidaritätszuschlag) thereon, resulting in an aggregate rate of 26.375%), which is levied in the form of withholding tax
(Kapitalertragsteuer). The shareholder is taxed on its gross personal investment income, less the saver’s tax-free allowance of
€ 801 for an individual or € 1,602 for a married couple filing taxes jointly. The deduction of income related expenses actually
incurred is generally not possible. Private investors can apply to have their investment income assessed in accordance with the
general rules on determining an individual’s tax bracket if this would result in a lower tax burden. In this case, the shareholder
will be taxed on gross personal investment income, less the saver’s tax-free allowance of € 801 (€ 1,602 for married couples
filing jointly), without deduction of income-related expenses actually incurred. If tax is initially withheld, it will be credited
against the amount of personal income tax assessed against the shareholder.
Losses resulting from the disposal of shares can only be offset by capital gains from the sale of shares. If, however, a
shareholder directly or indirectly held at least 1% of the share capital of the Company at any time during the five years preceding
the sale, 60% of any capital gains resulting from the sale are taxable at the shareholder’s personal income tax rate (plus 5.5%
solidarity surcharge thereon). Conversely, 60% of any capital losses are recognized for tax purposes.
In case the shares are held as business assets, the taxation depends on the legal form of the shareholder (i.e., whether the
shareholder is a corporation, an individual or a partnership). Irrespective of the legal form of the shareholder, dividends are also
in this business assets scenario subject to the aggregate withholding tax rate of 26.375%. The withholding tax
(Kapitalertragsteuer) is credited against the respective shareholder’s final (corporate) income tax liability. To the extent the
amount withheld exceeds the (corporate) income tax liability, the withholding tax will be refunded, provided that certain
requirements are met.
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Special rules apply to financial institutions (Kreditinstitute), financial services providers
(Finanzdienstleistungsinstitute), financial enterprises (Finanzunternehmen), life insurance and health insurance companies, and
pension funds.
With regard to shareholders in the legal form of a corporation, dividends and capital gains are effectively 95% tax
exempt from corporate income tax (including solidarity surcharge). However, with regards to dividends (not to capital gains)
realized after February 28, 2013, the 95% corporate income tax exemption only applies if the corporation holds at least 10% of
the shares in the Company at the beginning of the calendar year.
A circular issued by the Regional Tax Office Frankfurt/Main (Verfügung der OFD), dated December 2, 2013, reference
number S 2750a A-19-St 52, provides for further comments on the scope of application of the 10% threshold.
Dividends are fully subject to trade tax (Gewerbesteuer), unless the shareholder holds at least 15% of the shares in the
Company at the beginning of the tax assessment period. In the latter case, effectively 95% of the dividends are also exempt from
trade tax. Capital gains, however, are, irrespective of the size of the shareholding, 95% exempt from trade tax. Losses from the
sale of shares are not tax deductible for corporate income tax and trade tax purposes.
With regards to individuals holding shares as business assets, 60% of dividends and capital gains are taxed at the
individual’s personal income tax rate (plus 5.5% solidarity surcharge thereon). Correspondingly, only 60% of business expenses
related to the dividends and capital gains are principally deductible for income tax purposes.
If shares are held as business assets of a commercial permanent establishment located in Germany, dividends are fully
subject to trade tax, unless the sole proprietor holds at least 15% of the Company’s shares at the beginning of the tax assessment
period. In this case dividends are fully tax exempt from trade tax. With regards to capital gains, only 60% of the gains are subject
to trade tax. 60% of any losses from the sale of shares are tax deductible for income tax and trade tax purposes. All or part of the
trade tax is generally credited as a lump sum against the income taxes of the individual.
General rules for the Taxation of Shareholders Not Tax Resident in Germany
Non German resident holders of ADSs are subject to German taxation with respect to German source income
(beschränkte Steuerpflicht). According to the ADR Tax Circular dated May 24, 2013, income from the shares should be
attributed to the holder of the ADSs for German tax purposes. As a consequence, income from the ADSs should be treated as
German source income (beschränkte Steuerpflicht).
The full amount of a dividend distributed by the Company to a non German resident shareholder which does not
maintain a permanent establishment or other taxable presence in Germany is subject to (final) German withholding tax
(Kapitalertragsteuer) at an aggregate rate of 26.375%. The basis for the withholding tax is the approval of the dividend for
distribution by the Company’s general shareholder meeting. The amount of the relevant taxable income is based on the gross
amount in Euros; any currency differences shall be irrelevant.
German withholding tax is withheld and remitted to the German tax authorities by the disbursing agent (i.e., the German
bank, financial services institution, securities trading enterprise or securities trading bank (each as defined in the German Banking
Act (Kreditwesengesetz) and in each case including a German branch of a foreign enterprise, but excluding a foreign branch of a
German enterprise) that holds or administers the underlying shares in custody and disburses or credits the dividend income from
the underlying shares or disburses or credits the dividend income from the underlying shares on delivery of the dividend coupons
or disburses such dividend income to a foreign agent or the central securities depository (Wertpapiersammelbank) in terms of the
German Depositary Act (Depotgesetz)) holding the underlying shares in a collective deposit, if such central securities depository
disburses the dividend income from the underlying shares to a foreign agent, regardless of whether or not a holder must report the
dividend for tax purposes and regardless of whether or not a holder is a resident of Germany.
Pursuant to the Treaty, the German withholding tax generally may not exceed 15% of the gross dividends received by
U.S. treaty beneficiaries. In case of any U.S. treaty beneficiary qualifying as a not tax transparent corporation and directly
holding at least 10% or more of the Company’s voting shares, the German withholding tax is capped at 5% of the gross
dividends. The excess of the total withholding tax, including the solidarity surcharge, over the maximum rate of withholding tax
permitted by the Treaty is refunded to U.S. treaty beneficiaries upon application. For
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example, for a declared dividend of 100, a U.S. treaty beneficiary initially receives 73.625 (100 minus the 26.375% withholding
tax). The U.S. treaty beneficiary is entitled to a partial refund from the German tax authorities in the amount of 11.375% of the
gross dividend (of 100). As a result, the U.S. treaty beneficiary ultimately receives a total of 85 (85% of the declared dividend)
following the refund of the excess withholding. However, investors should note that it is unclear how the German tax
administration will apply the refund process to dividends on the ADSs and ADRs. Further, such refund is subject to the German
anti-avoidance treaty shopping rule (as described below in section “—Withholding Tax Refund for U.S. Treaty Beneficiaries”).
German Taxation of Capital Gains of the U.S. Treaty Beneficiaries of the ADSs
The capital gains from the disposition of ADSs realized by a non German resident shareholder which does not maintain
a permanent establishment or other taxable presence in Germany would be treated as German source income and subject to
German tax (beschränkte Steuerpflicht) if such holder at any time during the five years preceding the disposition, directly or
indirectly, held ADSs that represent 1% or more of the Company’s shares. If such holder had acquired the ADSs without
consideration, the previous owner’s holding period and size of the holding would also be taken into account.
However, U.S. treaty beneficiaries are eligible for treaty benefits under the Treaty (as discussed above in the section “—
German Taxation”). Pursuant to the Treaty, U.S. treaty beneficiaries are not subject to German tax even under the circumstances
described in the preceding paragraph.
German statutory law requires the disbursing agent to levy withholding tax on capital gains from the sale of shares or
other securities held in a custodial account in Germany. With regards to the German taxation of capital gains, disbursing agent
means a German bank, a financial services institution, a securities trading enterprise or a securities trading bank (each as defined
in the German Banking Act (Kreditwesengesetz) and, in each case including a German branch of a foreign enterprise, but
excluding a foreign branch of a German enterprise) that holds the ADSs in custody or administers the ADSs for the investor or
conducts sales or other dispositions and disburses or credits the income from the ADSs to the holder of the ADSs. The German
statutory law does not explicitly condition the obligation to withhold taxes on capital gains being subject to taxation in Germany
under German statutory law or on an applicable income tax treaty permitting Germany to tax such capital gains.
However, an interpretation circular issued by the German Federal Ministry of Finance (BMF-Schreiben) (dated January
18, 2016, reference number IV C 1-S2252/08/10004:017) provides that taxes need not be withheld when the holder of the custody
account is not a resident of Germany for tax purposes and the income is not subject to German taxation. The interpretation
circular further states that there is no obligation to withhold such tax even if the non-resident holder owns 1% or more of the
shares of a German company. While interpretation circulars issued by the German Federal Ministry of Finance are only binding
on the tax authorities but not on the tax courts, in practice, the disbursing agents nevertheless typically rely on guidance contained
in such interpretation circulars. Therefore, a disbursing agent would only withhold tax at 26.375% on capital gains derived by a
U.S. treaty beneficiary from the sale of ADSs held in a custodial account in Germany in the unlikely event that the disbursing
agent did not follow this guidance. In this case, the U.S. treaty beneficiary should be entitled to claim a refund of the withholding
tax from the German tax authorities under the Treaty (as described in the section “—Withholding Tax Refund for U.S. Treaty
Beneficiaries”).
Withholding Tax Refund for U.S. Treaty Beneficiaries
U.S. treaty beneficiaries are generally eligible for treaty benefits under the Treaty (as discussed above in Section “—
German Taxation”). Accordingly, U.S. treaty beneficiaries are entitled to claim a refund of the portion of the otherwise applicable
26.375% German withholding tax on dividends that exceeds the applicable Treaty rate. However, as previously discussed,
investors should note that it is unclear how the German tax administration will apply the refund process to dividends on the ADSs
and ADRs. Further, such refund is subject to the German anti-avoidance treaty shopping rule according to section 50d para. 3 of
the German Income Tax Act (Einkommensteuergesetz) which is currently subject to envisaged amendments in the draft law of the
Abzugsteuerentlastungsmodernisierungsgesetz (draft law passed by the German Federal Government on January 20, 2021, still
subject to parliamentary procedure in the German parliament). Generally, this rule requires that the U.S. treaty beneficiary (in
case it is a non German resident company) maintains its own administrative substance and conducts its own business activities. In
particular, a foreign company has no right to a full or partial refund to the extent persons holding ownership interests in the
company would not be entitled to the refund if they derived the income directly and the gross income realized by the foreign
company is
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not caused by the business activities of the foreign company, and there are either no economic or other valid reasons for the
interposition of the foreign company, or the foreign company does not participate in general commerce by means of a business
organization with resources appropriate to its business purpose. However, this shall not apply if the foreign company’s principal
class of stock is regularly traded in substantial volume on a recognized stock exchange, or if the foreign company is subject to the
provisions of the German Investment Tax Act (Investmentsteuergesetz).
Individual claims for refunds may be made on a separate form, which must be filed with the German Federal Central
Tax Office (Bundeszentralamt für Steuern), An der Küppe 1, 53225 Bonn, Germany. The form is available at the same address,
on the German Federal Tax Office’s website (www.bzst.de) or from the Embassy of the Federal Republic of Germany, 2300 M
Street, NW, Washington DC 20037. Generally, the refund claim becomes time-barred after four years following the calendar year
in which the dividend is received. As part of the individual refund claim, a U.S. treaty beneficiary must submit to the German tax
authorities the original withholding certificate (or a certified copy thereof) issued by the disbursing agent and documenting the
tax withheld, and an official certification of United States tax residency on IRS Form 6166. IRS Form 6166 may be obtained by
filing a properly completed IRS Form 8802 with the Internal Revenue Service, P.O. Box 71052, Philadelphia, PA 19176-6052.
Requests for certification must include the U.S. treaty beneficiary’s name, social security number or employer identification
number, the type of U.S. tax return filed, the tax period for which the certification is requested and a user fee of $85 for
individuals and $185 for non-individuals. An online payment option is also available at www.irs.gov. If the electronic payment
option is used, then the completed IRS Form 8802 and all required attachments should be mailed to Department of the Treasury,
Internal Revenue Service, Philadelphia, PA 19255-0625. The Internal Revenue Service will send the certification on IRS
Form 6166 to the U.S. treaty beneficiary, who must then submit the certification with the claim for refund of withholding tax.
The German tax law provisions on the issuance of withholding tax certificates and the refund process are currently
envisaged to be amended in the draft law of the Abzugsteuerentlastungsmodernisierungsgesetz (draft law passed by the German
Federal Government on January 20, 2021, still subject to parliamentary proceeding in the German parliament). The draft law is
usually subject to further changes in the parliamentary procedure.
Under a simplified refund procedure based on electronic data exchange (Datenträgerverfahren) a disbursing agent that
is registered as a participant in the electronic data exchange procedure with the German Federal Central Tax Office
(Bundeszentralamt für Steuern) may file an electronic collective refund claim on behalf of all of the U.S. treaty beneficiaries for
whom it holds the company’s ADSs in custody. However the simplified refund procedure only allows for a refund up to the
regular tax rate provided in the Treaty. It is not possible to use the simplified refund procedure to claim a further refund, for
example based on special privileges under the Treaty.
Due to the legal structure of the ADSs, only limited guidance of the German tax authorities exists on the practical
application of this procedure with respect to the ADSs.
German Inheritance and Gift Tax (Erbschaft- und Schenkungsteuer)
It is unclear whether the German inheritance or gift tax applies to the transfer of the ADSs as the ADR Tax Circular
does not refer explicitly to the German Inheritance and Gift Tax Act. However, if German inheritance or gift tax is applicable to
ADSs, then under German domestic law, the transfer of the ordinary shares in the company and, as a consequence, the gratuitous
transfer of the ADSs would be subject to German gift or inheritance tax if:
(a)
the decedent or donor or heir, beneficiary or other transferee (i) maintained his or her residence or a habitual
abode in Germany or had its place of management or registered office in Germany at the time of the transfer, or
(ii) is a German citizen who has spent no more than five consecutive years outside Germany without maintaining
a residence in Germany or (iii) is a German citizen who serves for a German entity established under public law
and is remunerated for his or her service from German public funds (including family members who form part of
such person’s household, if they are German citizens) and is only subject to estate or inheritance tax in his or her
country of residence or habitual abode with respect to assets located in such country (special rules apply to
certain former German citizens who neither maintain a residence nor have their habitual abode in Germany), or
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(b)
(c)
at the time of the transfer, the ADSs are held by the decedent or donor as business assets forming part of a
permanent establishment in Germany or for which a permanent representative in Germany has been appointed,
or
the ADSs subject to such transfer form part of a portfolio that represents at the time of the transfer 10% or more
of the registered share capital of the company and that has been held directly or indirectly by the decedent or
donor, either alone or together with related persons.
Under the Agreement between the Federal Republic of Germany and the United States of America for the avoidance of
double taxation with respect to taxes on inheritances and gifts (Abkommen zwischen der Bundesrepublik Deutschland und den
Vereinigten Staaten von Amerika zur Vermeidung der Doppelbesteuerung auf dem Gebiet der Nachlass-, Erbschaft- und
Schenkungsteuern in der Fassung vom 21. Dezember 2000) (the “United States-Germany Inheritance and Gifts Tax Treaty”), a
transfer of ADSs by gift or upon death is not subject to German inheritance or gift tax if the donor or the transferor is domiciled
in the United States, within the meaning of the United States-Germany Inheritance and Gift Tax Treaty, and is neither a citizen of
Germany nor a former citizen of Germany and, at the time of the transfer, the ADSs are not held by the decedent or donor as
business assets forming part of a permanent establishment in Germany or for which a permanent representative in Germany has
been appointed.
Notwithstanding the foregoing, in case the heir, transferee or other beneficiary (i) has, at the time of the transfer, his or
her residence or habitual abode in Germany, or (ii) is a German citizen who has spent no more than five consecutive years outside
Germany without maintaining a residence in Germany or (iii) is a German citizen who serves for a German entity established
under public law and is remunerated for his or her service from German public funds (including family members who form part
of such person’s household, if they are German citizens) and is only subject to estate or inheritance tax in his or her country of
residence or habitual abode with respect to assets located in such country (or special rules apply to certain former German
citizens who neither maintain a residence nor have their habitual abode in Germany), the transferred ADSs are subject to German
inheritance or gift tax.
If, in this case, Germany levies inheritance or gift tax on the ADSs with reference to the heir’s, transferee’s or other
beneficiary’s residence in Germany or his or her German citizenship, and the United States also levies federal estate tax or federal
gift tax with reference to the decedent’s or donor’s residence (but not with reference to the decedent’s or donor’s citizenship), the
amount of the U.S. federal estate tax or the U.S. federal gift tax, respectively, paid in the United States with respect to the
transferred ADSs is credited against the German inheritance or gift tax liability, provided the U.S. federal estate tax or the U.S.
federal gift tax, as the case may be, does not exceed the part of the German inheritance or gift tax, as computed before the credit
is given, which is attributable to the transferred ADSs. A claim for credit of the U.S. federal estate tax or the U.S. federal gift tax,
as the case may be, may be made within one year of the final determination (administrative or judicial) and payment of the U.S.
federal estate tax or the U.S. federal gift tax, as the case may be, provided that the determination and payment are made within
ten years of the date of death of the decedent or of the date of the making of the gift by the donor. Similarly, U.S. state-level
estate or gift taxes are also creditable against the German inheritance or gift tax liability to the extent that U.S. federal estate or
gift tax is creditable.
United States Taxation of ADSs and Ordinary Shares
The following discussion describes the material U.S. federal income tax consequences that are relevant with respect to
the acquisition, ownership and disposition of the ADSs and ordinary shares by a U.S. holder (as defined below) as in effect on the
date of this annual report. The information provided below is based on the Internal Revenue Code of 1986, as amended, or the
Code, Internal Revenue Service, or IRS, rulings and pronouncements, and judicial decisions all as now in effect and all of which
are subject to change or differing interpretations, possibly with retroactive effect. This summary addresses only U.S. federal
income tax considerations of U.S. holders that will hold ADSs or ordinary shares as capital assets. It does not provide a complete
analysis of all potential tax considerations. In particular, this summary does not address all of the tax considerations applicable to
a particular holder of the ADSs or ordinary shares in light of the holder’s circumstances (for example, financial institutions;
insurance companies; dealers or traders in securities; currencies or notional principal contracts; persons that will hold ADSs or
ordinary shares as part of a hedging or conversion transaction or as a position in a straddle or other integrated transactions for
U.S. federal income tax purposes; persons that have a functional currency other than the U.S. dollar; persons that own (or are
deemed to own) 10% or more (by voting power) of our share capital; regulated investment companies, real estate investment
trusts; tax-exempt entities; persons who hold ADSs or ordinary shares through partnerships or other pass-through entities;
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tax-deferred or other retirement accounts; certain former citizens or residents of the United States; or persons deemed to sell
ADSs or ordinary shares under the constructive sale provisions of the Code). Finally, the summary does not describe the effect of
the U.S. federal estate and gift tax laws on U.S. holders or the effects of any applicable foreign, state or local laws.
For purposes of this summary, a “U.S. holder” is a beneficial owner of ADSs or ordinary shares that for U.S. federal
income tax purposes, is (1) an individual who is a citizen or resident of the United States, (2) a corporation, or an entity treated as
a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States or any state of
the United States, including the District of Columbia, (3) an estate, the income of which is subject to U.S. federal income taxation
regardless of its source, or (4) a trust, if it (i) is subject to the primary supervision of a U.S. court and the control of one or more
U.S. persons or (ii) has a valid election in effect under applicable U.S. Treasury Regulations to be treated as a U.S. person. A
“non-U.S. holder” is a beneficial owner of the ADSs or ordinary shares, other than a partnership or entity treaty as a partnership,
that is not a U.S. holder.
If a partnership (including an entity or arrangement, domestic or foreign, treated as a partnership for U.S. federal income
tax purposes) holds ADSs or ordinary shares, the tax treatment of a partner in the partnership will depend upon the status of the
partner and the activities of the partnership. A holder of ADSs or ordinary shares that is a partnership, and partners in such
partnership, should consult their own tax advisors about the U.S federal income and estate tax consequences of purchasing,
owning and disposing of the ADSs or ordinary shares.
Each prospective holder of ADSs should consult its own tax advisors regarding the U.S. federal, state and local or other tax
consequences of acquiring, owning and disposing of the company’s ADSs in light of their particular circumstances. U.S.
holders should also review the discussion under “German Taxation of ADSs” for the German tax consequences to a U.S
holder of the ownership of the ADSs.
General
In general, and taking into account the earlier assumptions, a U.S. holder of ADSs is treated as the owner of the ordinary
shares represented by such ADSs. Accordingly, exchanges of ordinary shares for ADSs, and ADSs for ordinary shares,
respectively, generally will not be subject to U.S. federal income tax.
Distributions
Under the United States federal income tax laws, and subject to the discussion below under “Additional United States
Federal Income Tax Consequences – PFIC Rules,” the gross amount of any distribution that is actually or constructively received
by a U.S. holder with respect to its ordinary shares (including shares deposited in respect of ADSs) will be a dividend includible
in gross income of a U.S. holder as ordinary income to the extent the amount of such distribution is paid out of our current and
accumulated earnings and profits, as determined for U.S. federal income tax purposes. To the extent the amount of such
distribution exceeds our current and accumulated earnings and profits as so computed, it will be treated first as a non-taxable
return of capital to the extent of such U.S. holder’s adjusted tax basis in its ADSs or ordinary shares, and to the extent the amount
of such distribution exceeds such adjusted tax basis, will be treated as gain from the sale of the ADSs or ordinary shares. If you
are a non-corporate U.S. holder, dividends paid to you that constitute qualified dividend income will be taxable to you at a
preferential rate (rather than the higher rates of tax generally applicable to items of ordinary income) provided that you hold our
ADSs or ordinary shares for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date and
meet other holding period requirements. If we are a passive foreign investment company (as discussed below under “—
Additional United States Federal Income Tax Consequences—PFIC Rules”), distributions paid by us with respect ADSs or
ordinary shares will not be eligible for the preferential income tax rate. Prospective investors should consult their own tax
advisors regarding the taxation of distributions under these rules.
You must include any German tax withheld from the dividend payment in this gross amount even though you do not in
fact receive it. The gross amount of the dividend is taxable to you when you receive the dividend, actually or constructively.
Dividends paid on ADSs will not be eligible for the dividends-received deduction generally available to corporate U.S. holders.
The gross amount of any dividend paid in foreign currency will be included in the gross income of a U.S. holder in an amount
equal to the U.S. dollar value of the foreign currency calculated by reference to the exchange rate in effect on the date the
dividend distribution is includable in the U.S. holder’s income, regardless of whether the payment is in fact converted into U.S.
dollars. If the foreign currency is converted into U.S. dollars on the
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date of receipt by the depositary, in the case of ADSs, or the U.S. holder, in the case of ordinary shares, a U.S. holder generally
should not be required to recognize foreign currency gain or loss in respect of the dividend. If the foreign currency received is not
converted into U.S. dollars on the date of receipt, a U.S. holder will have a basis in the foreign currency equal to its U.S. dollar
value on the date of receipt. Any gain or loss on a subsequent conversion or other disposition of the foreign currency will be
treated as ordinary income or loss, and will generally be income or loss from sources within the United States for foreign tax
credit limitation purposes. The amount of any distribution of property other than cash will be the fair market value of the property
on the date of the distribution, less the sum of any encumbrance assumed by the U.S. holder.
For foreign tax credit purposes, our dividend distributions will generally constitute income from sources outside the
United States and be “passive” income. Depending on your particular circumstances, you may be eligible, subject to a number of
complex limitations, to claim a foreign tax credit in respect of any foreign withholding taxes imposed on dividends received on
our ADSs or ordinary shares. The amount of the qualified dividend income, if any, paid to a U.S. holder that is subject to the
reduced dividend income tax rate and that is taken into account for purposes of calculating the U.S. holder’s U.S. foreign tax
credit limitation must be reduced by the rate differential portion of the dividend. If you do not elect to claim a foreign tax credit
for foreign tax withheld, you may instead claim a deduction, for U.S. federal income tax purposes, for the foreign tax withheld,
but only for a year in which you elect to do so for all creditable foreign income taxes. The rules governing the foreign tax credit
are complex. Prospective investors should consult their own tax advisors regarding the implications of the foreign tax credit
provisions for them, in light of their particular situation.
U.S. Taxation of Sale or Other Disposition
Subject to the discussion below under “—Additional United States Federal Income Tax Consequences—PFIC Rules,” a
U.S. holder will generally recognize a gain or loss for U.S. federal income tax purposes upon the sale or other disposition of
ADSs or ordinary shares in an amount equal to the difference between the U.S. dollar value of the amount realized from such sale
or other disposition and the U.S. holder’s tax basis in such ADSs or ordinary shares. Such gain or loss generally will be capital
gain or loss. Capital gain of a non-corporate U.S. holder recognized on the sale or other disposition of ADSs or ordinary shares
held for more than one year is generally eligible for a reduced rate of taxation. The gain or loss will generally be income or loss
from sources within the United States for foreign tax credit limitation purposes. The deductibility of capital losses is subject to
limitations.
A U.S. holder that receives foreign currency on the sale or other disposition of ADSs or ordinary shares will realize an
amount equal to the U.S. dollar value of the foreign currency on the date of sale (or, in the case of cash basis and electing accrual
basis taxpayers, the U.S. dollar value of the foreign currency on the settlement date) provided that the ADSs or ordinary shares,
as the case may be, are treated as being “traded on an established securities market.” If a U.S. holder receives foreign currency
upon a sale or exchange of ADSs or ordinary shares, gain or loss, if any, recognized on the subsequent sale, conversion or
disposition of such foreign currency will be ordinary income or loss, and will generally be income or loss from sources within the
United States for foreign tax credit limitation purposes. However, if such foreign currency is converted into U.S. dollars on the
date received by the U.S. holder, a cash basis or electing accrual U.S. holder should not recognize any gain or loss on such
conversion.
Redemption
A redemption of ADSs or the ordinary shares underlying such ADSs by us will be treated as a sale of the redeemed
ADSs or ordinary shares by the U.S. holder or as a distribution to the U.S. holder (which is taxable as described above under “—
Distributions”).
Additional United States Federal Income Tax Consequences
PFIC Rules. Special adverse U.S. federal income tax rules apply to U.S. holders owning shares of a passive foreign
investment company, or PFIC. In general, if you are a U.S. holder, we will be a PFIC with respect to you if for any taxable year
in which you held our ADSs or ordinary shares: (i) at least 75% of our gross income for the taxable year is passive income (the
“income test”) or (ii) at least 50% of the value, determined on the basis of a quarterly average, of our assets is attributable to
assets that produce or are held for the production of passive income (the “asset test”). The determination of whether we are a
PFIC will be made annually. Accordingly, it is possible that we may become a PFIC
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in the current or any future taxable year due to changes in our asset or income composition. The composition of income and
assets will be affected by whether, how, and how quickly, we spend any cash we currently hold.
Passive income for purposes of the income test generally includes dividends, interest, royalties, rents (other than certain
rents and royalties derived in the active conduct of a trade or business), annuities and gains from the disposition of assets that
produce passive income. Any cash we hold generally will be treated as held for the production of passive income for the purpose
of the PFIC test, and any income generated from cash or other liquid assets generally will be treated as passive income for such
purpose. If a foreign corporation owns at least 25% by value of the stock of another corporation, the foreign corporation is treated
for purposes of the PFIC tests as owning its proportionate share of the assets of the other corporation, and as receiving directly its
proportionate share of the other corporation’s income.
We believe that we were not a PFIC for our taxable year ending December 31, 2020. However, since the determination
of whether we are a PFIC is based upon such factual matters as our market capitalization and the valuation of our assets and upon
certain assumptions and methodologies in which we have based our analysis, there can be no assurance that the IRS will agree
with our position. Furthermore, because we have valued our goodwill for purposes of the asset test based on the market value of
our equity, a further decline in the value of our equity due to fluctuations in the price of our ADSs and ordinary shares could
result in us becoming a PFIC for our taxable year ending on December 31, 2020 or for future taxable years.
If we were to be treated as a PFIC, the U.S. federal income tax consequences to a U.S. holder of the acquisition, ownership,
and disposition of our ADSs or ordinary shares will depend on whether such U.S. holder makes an election to treat us as a
“qualified electing fund” or “QEF” under Section 1295 of the Code (a QEF Election) or a mark-to-market election under
Section 1296 of the Code (a Mark-to-Market Election). A U.S. holder who makes a QEF election will be taxed currently on such
U.S. holder’s pro rata share of our annual ordinary income and capital gains (each separately stated). We do not intend to furnish
holders with the information necessary to make a QEF Election. A U.S. holder may make a Mark-to-Market Election if our
shares or ADSs are “marketable stock,” and would, as a result of such election, include as ordinary income the excess of the fair
market value of such U.S. holder’s ADSs or ordinary shares at year-end over such U.S. holder’s basis in those ADSs or ordinary
shares. In addition, any gain recognized upon a sale of ADSs or ordinary shares would be taxed as ordinary income in the year of
sale.
A U.S. Holder that does not make either a QEF Election or a Mark-to-Market Election (a Non-Electing U.S. Holder)
would be subject to special adverse tax rules with respect to (i) “excess distributions” received on our ADSs or ordinary shares
and (ii) any gain recognized upon a sale or other disposition (including a pledge) of our ADSs or ordinary shares. A Non-Electing
U.S. Holder would be treated as if it had realized such gain and certain “excess distributions” ratably over its holding period for
our ADSs or ordinary shares and would be taxed at the highest tax rate in effect for each such year to which the gain was
allocated, together with an interest charge in respect of the tax attributable to each such year. Special rules apply for calculating
the amount of the foreign tax credit with respect to “excess distributions” by a PFIC.
With certain exceptions, a Non-Electing U.S. Holder’s ADSs or ordinary shares will be treated as stock in a PFIC if we
were a PFIC at any time during the U.S. holder’s holding period in for its ordinary shares or ADSs, even if we are not currently a
PFIC.
Dividends that a U.S. holder receives from us will not be eligible for the special tax rates applicable to qualified
dividend income if we are treated as a PFIC either in the taxable year of the distribution or the preceding taxable year, but instead
will be taxable at rates applicable to ordinary income.
If we are were to be treated as a PFIC, owners of our ADSs or ordinary shares (including, potentially, indirect owners)
would be required to file an information report with respect to such interest together with their tax returns, subject to certain
exceptions. U.S. holders are urged to consult their tax advisors regarding the application of these rules to their ownership of the
ADSs.
Medicare Tax. Certain U.S. holders who are individuals, estates and trusts will be required to pay an additional 3.8%
tax on some or all of their “net investment income,” which generally includes its dividend income and net gains from the
disposition of our ADSs or ordinary shares. U.S. holders should consult their own tax advisors regarding the applicability of this
additional tax on their particular situation.
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Information with Respect to Foreign Financial Assets. Owners of “specified foreign financial assets” with an
aggregate value in excess of $50,000 (and in some circumstances, a higher threshold) may be required to file an information
report with respect to such assets on their tax returns. “Specified foreign financial assets” may include financial accounts
maintained by foreign financial institutions, as well as the following, but only if they are not held in accounts maintained by
financial institutions: (i) stocks and securities issued by non-U.S. persons, (ii) financial instruments and contracts held for
investment that have non-U.S. issuers or counterparties, and (iii) interests in foreign entities. U.S. holders are urged to consult
their tax advisors regarding the application of this legislation to their ownership of the ADSs and ordinary shares.
Backup Withholding and Information Reporting. Backup withholding and information reporting requirements will
generally apply to certain payments to U.S. holders of dividends on ADSs or ordinary shares. We, our agent, a broker or any
paying agent, may be required to withhold tax from any payment that is subject to backup withholding unless the U.S. holder
(1) is an exempt payee, or (2) provides the U.S. holder’s correct taxpayer identification number and complies with applicable
certification requirements. Payments made to U.S. holders by a broker upon a sale of our ADSs or ordinary shares will generally
be subject to backup withholding and information reporting. If the sale is made through a foreign office of a foreign broker,
however, the sale will generally not be subject to either backup withholding or information reporting. This exception may not
apply if the foreign broker is owned or controlled by U.S. persons, or is engaged in a U.S. trade or business.
Backup withholding is not an additional tax. Any amounts withheld from a payment to a U.S. holder of ADSs or
ordinary shares under the backup withholding rules can be credited against any U.S. federal income tax liability of the U.S.
holder, provided the required information is timely furnished to the IRS. A U.S. holder generally may obtain a refund of any
amounts withheld under the backup withholding rules that exceeds the U.S. holder’s income tax liability by filing a refund claim
with the IRS. Prospective investors should consult their own tax advisors as to their qualification and procedure for exemption
from backup withholding.
The above description is not intended to constitute a complete analysis of all tax consequences relating to the
purchase, ownership or disposition of the ADSs or ordinary shares. Investors deciding on whether or not to invest in
ADSs or ordinary shares should consult their own tax advisors concerning the tax consequences of their particular
situations.
F. DIVIDENDS AND PAYING AGENTS
Not applicable.
G. STATEMENT BY EXPERTS
Not applicable.
H. DOCUMENTS ON DISPLAY
We previously filed with the SEC our registration statements on Form F-1 (Registration No. 333-191213 and 333-
194843), as amended, including the prospectuses contained therein, to register our ordinary shares. We have also filed with the
SEC a related registration statement on F-6 (Registration No. 333-191526) to register the ADSs.
We are subject to the periodic reporting and other informational requirements of the Exchange Act. Under the Exchange
Act, we are required to file reports and other information with the SEC. Specifically, we are required to file annually a Form 20-F
within four months after the end of each fiscal year, which is December 31. Copies of reports and other information, when so
filed, may be inspected without charge and may be obtained at prescribed rates at the public reference facilities maintained by the
Securities and Exchange Commission at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. The SEC also maintains a
website at www.sec.gov that contains reports, proxy and information statements, and other information regarding registrants that
make electronic filings with the SEC using its EDGAR system. As a foreign private issuer, we are exempt from the rules under
the Exchange Act prescribing the furnishing and content of quarterly reports and proxy statements, and officers, directors and
principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the
Exchange Act.
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I. SUBSIDIARY INFORMATION
Not applicable.
ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risk from fluctuations in interest rates and foreign currency exchange rates which may
adversely affect our results of operations and financial condition. We seek to minimize these risks through regular operating and
financing activities and, when we consider it to be appropriate, through the use of derivative financial instruments. We do not
purchase, hold or sell derivative financial instruments for trading or speculative purposes.
Interest Rates
We assess our exposure to market risk for changes in interest rates as low, as our loans have entirely fixed interest rates,
with one exception. An immediate 10% change in interest rates would not have a material effect on our financial condition or
results of operations. For the first tranche of the loan received from the EIB amounting to € 10.0 million, there exists a cash-
settled warrant at the maturity date (5 years after draw down), after the occurrence of a trigger event, or on the expiration date (10
years after draw down). Further, € 5.0 million under the second tranche (tranche B1) have been disbursed from the EIB in June
2020. This portion of the second tranche also includes a cash-settled warrant at the maturity date (5 years after draw down), after
the occurrence of a trigger event, or on the expiration date (10 years after draw down of the first tranche).
Equity price risk
In addition, for the first tranche as well as the € 5.0 million portion of the second tranche of the loan received from the
EIB, the cash-settled warrant is dependent on the Company’s share price. Changes in the Company’s share price will affect the
value of an equity forward derivative instrument (increasing share prices as compared to the share price at disbursement date will
lead to a negative fair value of the derivative, decreasing share prices will lead to a positive fair value of the derivative).
Foreign Exchange Rates
We transact business globally and are subject to risks associated with fluctuating foreign exchange rates. The countries
outside of the eurozone in which we sell our products and services have not historically been highly inflationary. Approximately
68%, 69% and 58% of our revenues were derived from sales outside of the eurozone region in 2020, 2019 and 2018, respectively.
Receivables denominated in a foreign currency are initially recorded at the exchange rate at the transaction date and subsequently
remeasured in Euros based on period-end exchange rates. Transaction gains and losses that arise from exchange rate fluctuations
are charged to income.
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ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
American Depositary Shares
Fees and Expenses
Citibank, N.A. serves as the depositary for our ADSs. Holders of our ADSs are required to pay the following fees to the
depositary under the terms of our deposit agreement:
Service
(1) Issuance of ADSs upon deposit of shares (excluding
Fees
issuances as a result of distributions of shares
described in (4) below)
(2) Cancellation of ADSs
(3) Distribution of cash dividends or other cash
distributions (i.e., sale of rights or other entitlements)
(4) Distribution of ADSs pursuant to (i) stock dividends
or other free stock distributions or (ii) exercise of
rights to purchase additional ADSs.
(5) Distribution of securities other than ADSs or rights to
purchase additional ADSs (i.e., spin-off shares)
(6) ADS Services
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) issued.
Up to U.S. $5.00 per 100 ADSs (or fraction thereof)
surrendered.
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) held.
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) held.
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) held.
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) held on the
applicable record date(s) established by the Depositary.
Holders of our ADSs are responsible for paying certain charges such as:
●
●
●
●
●
●
taxes (including applicable interest and penalties) and other governmental charges;
the registration fees as may from time to time be in effect for the registration of ordinary shares on the share register
and applicable to transfers of ordinary shares to or from the name of the custodian, the depositary or any nominees
upon the making of deposits and withdrawals, respectively;
certain cable, telex and facsimile transmission and delivery expenses;
the expenses and charges incurred by the depositary in the conversion of foreign currency;
the fees and expenses incurred by the depositary in connection with compliance with exchange control regulations
and other regulatory requirements applicable to ordinary shares, ADSs and ADRs; and
the fees and expenses incurred by the depositary, the custodian, or any nominee in connection with the servicing or
delivery of deposited property.
ADS fees and charges payable upon (i) deposit of ordinary shares against issuance of ADSs and (ii) surrender of ADSs
for cancellation and withdrawal of ordinary shares are charged to the person to whom the ADSs are delivered (in the case of ADS
issuances) and to the person who delivers the ADSs for cancellation (in the case of ADS cancellations). In the case of ADSs
issued by the depositary into Depository Trust Company (“DTC”), or presented to the depositary via DTC, the ADS issuance and
cancellation fees and charges are charged to the DTC participant(s) receiving the ADSs or the DTC participant(s) surrendering
the ADSs for cancellation, as the case may be, on behalf of the beneficial owner(s) and will be charged by the DTC participant(s)
to the account(s) of the applicable beneficial owner(s) in accordance with the procedures and practices of the DTC participant(s)
as in effect at the time. ADS fees and charges in respect of distributions and the ADS service fee are charged to the holders as of
the applicable ADS record date. In the case of distributions of cash, the amount of the applicable ADS fees and charges is
deducted from the funds being distributed. In the case of (i) distributions other than cash and (ii) the ADS service fee, holders as
of the ADS
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record date will be invoiced for the amount of the ADS fees and charges. For ADSs held through DTC, the ADS fees and charges
for distributions other than cash and the ADS service fee are charged to the DTC participants in accordance with the procedures
and practices prescribed by DTC and the DTC participants in turn charge the amount of such ADS fees and charges to the
beneficial owners for whom they hold ADSs.
In the event of refusal to pay the depositary fees, the depositary may, under the terms of the deposit agreement, refuse
the requested service until payment is received or may set off the amount of the depositary fees from any distribution to be made
to the ADS holder.
Note that the fees and charges you may be required to pay may vary over time and may be changed by us and by the
depositary. You will receive prior notice of such changes.
The depositary may reimburse us for certain expenses incurred by us in respect of the ADR program by making
available a portion of the ADS fees charged in respect of the ADR program or otherwise, upon such terms and conditions as we
and the depositary agree from time to time.
ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
PART II
None.
ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
There have been no material modifications to the rights of security holders for the year ended on December 31, 2020.
ITEM 15 CONTROLS AND PROCEDURES
(a) Disclosure Controls and Procedures
Our management, including our Chief Executive Officer and Chief Financial Officer, have conducted an evaluation of
the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-
15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of December 31, 2020. Our Chief
Executive Officer and Chief Financial Officer concluded that, as a result of material weaknesses in internal control over financial
reporting as described below, our disclosure controls and procedures were not effective as of December 31, 2020. For purposes of
Rule 13a-15(e), the term disclosure controls and procedures means controls and other procedures of an issuer that are designed to
ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls
and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed
by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s
management, including its Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as
appropriate to allow timely decisions regarding required disclosure.
(b) Management’s Annual Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as
such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company’s internal control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB). A company’s internal control over financial reporting includes those policies
and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) Provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being
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made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a
material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that
there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be
prevented or detected on a timely basis.
Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2020 using
the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated
Framework (2013) (the “COSO 2013 Framework”). Based on the assessment and those criteria, management concluded that our
internal control over financial reporting was not effective as of December 31, 2020 due to material weaknesses in our internal
control over financial reporting described below.
Our Audit Committee did not exercise sufficient oversight responsibilities for management’s design, implementation
and conduct of internal control over the five components of the COSO 2013 Framework.
We did not provide sufficient education on the COSO 2013 Framework and their financial reporting and related internal
control responsibilities to the personnel involved in the financial reporting and internal control activities.
We did not have sufficient knowledge of IFRS, including understanding of new accounting standards, in order for the
preparation of financial statements in accordance with IFRS and consideration of the impact of changes on our internal control
over financial reporting.
Our process to evaluate the competence and expertise necessary to support the growth and complexity of the business,
its financial reporting, and response to address shortcomings was not sufficiently implemented during 2019. As a result, we did
not have a sufficient number of adequately trained personnel within the organization and appropriate oversight of outsourced
service providers with assigned responsibility and accountability for the design, effective operation, and documentation of
internal control over financial reporting. This also resulted in ineffective design and implementation, and operation of controls
over non-standard transactions, including significant unusual transactions, which are not timely identified and reviewed in
sufficient detail by personnel with appropriate technical expertise to ensure that the accounting treatment in accordance with
IFRS is appropriate.
We did not have an effective risk assessment process to identify and assess the financial reporting risks caused by
changes in the operating environment, business operations, personnel or IT systems and to make necessary changes to our
financial reporting processes and related internal controls to manage those risks. This also resulted in, that we did not have a
proper process in place to sufficiently and timely identify and assess new events and transactions in order to consider necessary
adjustments to our system of internal control over financial reporting.
We did not have effective design and implementation, and operation of controls over the monitoring of compliance with
financial covenants in the Company’s debt agreements to ensure the appropriate accounting treatment, including disclosure
requirements, in accordance with IFRS.
We did not have sufficient processes and controls in place to ensure the timely identification and communication of
relevant and reliable information sourced internally and externally to financial reporting personnel, management, and our
Supervisory Board, to enable appropriate evaluation and disclosure of such information in the Company’s financial reporting
processes.
We did not have a process to track, communicate, and aggregate the deficiencies identified through both internal and
external sources. We did not have policies and practices to evaluate the severity of the identified deficiencies.
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We did not have a timely process to remediate our existing control deficiencies.
Ineffective design and implementation, and operation of controls over the completeness, existence and accuracy of the
financial statement close and reporting process and financial statement disclosures.
Ineffective design and implementation, and operation of controls over the completeness, existence, accuracy and
presentation of the consolidated statements of cash flows.
Ineffective design and implementation, and operation of controls over the monitoring of compliance with financial
covenants within the Company’s debt agreements to ensure the appropriate accounting treatment, including disclosure
requirements, in accordance with IFRS.
We did not adequately design and document management review controls to sufficiently address management’s
expectations, criteria for investigation, follow-up on outliers and the level of precision used in the performance of the review
controls.
Ineffective design and implementation, and operation of controls over the initiation, authorization, and recording of
manual journal entries.
We did not have a process or controls in place to count all inventory at subsidiary locations.
These control deficiencies resulted in several material and immaterial misstatements to the preliminary consolidated
financial statements that were corrected prior to the issuance of the consolidated financial statements. These deficiencies create a
reasonable possibility that a material misstatement to the consolidated financial statements will not be prevented or detected on a
timely basis, and therefore we concluded that the deficiencies represent material weaknesses in our internal control over financial
reporting and our internal control over financial reporting was not effective as of December 31, 2020.
Notwithstanding the identified material weaknesses, management believes that the consolidated financial statements and
related notes thereto included in this annual report on Form 20-F present fairly, in all material respects, the financial position of
the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in
the period ended December 31, 2020, in conformity with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
Remediation Plan
Management is actively engaged in the planning for, and implementation of, remediation efforts to address the material
weaknesses identified, specifically relating to the accounting and presentation of complex, non-routine transactions. Management
will undertake the following changes to remediate the material weakness described above:
●
●
●
Education and training for the accounting personnel on the IFRS topics.
The Company will take steps to ensure adequate design and document management review controls to sufficiently
address management’s expectations, criteria for investigation, follow-up on outliers and the level of precision used in
the performance of the review controls.
The Company will design and implement controls over the initiation, authorization, and recording of manual journal
entries.
Our management believes that these actions will remediate the material weaknesses in internal control over financial
reporting described above. The remediation efforts are expected to be implemented during the financial year 2021.
(c) Attestation Report of the Registered Public Accounting Firm
This annual report does not include a report of the Company’s independent registered public accounting firm due to the
Company's status as a non-accelerated filer in 2020.
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(d) Changes in internal control over financial reporting
As described above under “Remediation Plan,” we are undertaking a broad range of remedial actions to address the
material weaknesses in our internal control over financial reporting identified during 2019 and 2020. We made the following
changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the
Exchange Act) during the fiscal year ended December 31, 2020 that have improved our internal control over financial reporting,
specifically:
●
The Company has implemented the consolidation module within SAP, which is fully integrated with the existing
modules used by the Company at the end of the fiscal year 2020 and is expecting the complete transition of
consolidation process to this tool by the mid of fiscal year 2021.
In addition, the Company has implemented following remediation efforts in response to the findings of the Audit
Committee Investigation of 2020:
●
●
The implementation of a formal process of auditor communication.
The implementation of a system to regularly monitor all the financial covenants arising out of the financial
arrangements.
●
The centralization of maintenance of all meeting minutes.
ITEM 16. RESERVED
ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT
Our Supervisory Board has determined that the chairman of our Audit Committee, Peter Nietzer, qualifies as an “audit
committee financial expert” within the meaning of this Item 16A. Our Supervisory Board has determined that Peter Nietzer and
each of the other members of the Audit Committee is independent under the requirements of the NASDAQ Listing Rules and
Rule 10A-3 of the Exchange Act.
ITEM 16B. CODE OF ETHICS
We have adopted a written code of business conduct and ethics, or code of conduct, which outlines the principles of
legal and ethical business conduct under which we do business. The code of conduct applies to all of our Supervisory Board
members, Management Board members and employees. The full text of the code of conduct is available on our website at
www.voxeljet.de. This website address is included in this annual report as an inactive textual reference only. The information and
other content appearing on our website are not part of this annual report.
No waivers have been granted to the code of conduct since its adoption.
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The following table sets forth the fees billed to us by our independent registered public accounting firm
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (“PwC”) during the fiscal year ended December 31, 2020 and
by our former independent registered public accounting firm KPMG AG Wirtschaftsprüfungsgesellschaft (“KPMG”) during the
fiscal year ended December 31, 2019:
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Audit fees
Audit-related fees
Tax fees
All other fees
Total
December 31,
2020
2019
(€ in thousands)
€ 995
€ 29
--
--
€ 1,024
€ 1,094
--
--
--
€ 1,094
Audit fees include the audit of our financial statements, the review of interim financial information and SEC registration
statements, and statutory audits. In November 2019, our Supervisory Board recommended the appointment of PwC to serve as
our new independent accountants for the year ending December 31, 2020 and the dismissal of KPMG upon completion of the
audit of the Company’s consolidated financial statements as of and for the year ended December 31, 2019 and the issuance of
the report thereon. Audit-related fees in 2020 include services rendered related to a Form F-3 filing.
Pre-Approval Policies and Procedures
The advance approval of the Audit Committee or members thereof, to whom approval authority has been delegated, is
required for all audit and non-audit services provided by our auditors. All services provided by the principal auditing firm in 2020
detailed in the table above were approved by the Audit Committee.
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Not applicable.
ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
None.
ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
In November 2019, our Supervisory Board recommended the appointment of PwC to serve as our new independent
accountants for the year ending December 31, 2020, and the dismissal of KPMG upon completion of the audit of the Company’s
consolidated financial statements as of and for the year ended December 31, 2019 and the issuance of the annual report thereon
(the “2019 Annual Report”). The 2019 Annual Report was filed with the SEC on May 7, 2020, and the appointment of PwC was
approved by the Company’s shareholders at the Annual General Meeting held on June 30, 2020.
PwC’s reports on our consolidated statements of financial position as of December 31, 2020, the related consolidated
statements of comprehensive loss, changes in equity, and cash flows for the year ended December 31, 2020, and the related notes
(collectively, the “consolidated financial statements”), did not contain any adverse opinion or disclaimer of opinion, nor were
they qualified or modified as to uncertainty, audit scope, or accounting principles.
ITEM 16G. CORPORATE GOVERNANCE
In general, under NASDAQ Listing Rule 5615(a)(3), foreign private issuers such as us are permitted to follow home
country corporate governance practices in lieu of certain NASDAQ corporate governance standards as long as we disclose in the
annual report the significant ways in which our corporate governance practices differ from those followed by U.S. companies.
The significant differences between the corporate governance practices that we follow and those set forth in the
NASDAQ Listing Rules are described below:
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● NASDAQ Listing Rule 5605(b)(1) requires listed companies to have a majority of independent directors. There is
no requirement under German law that the majority of members of a supervisory board be independent, and the
rules of procedure of our Supervisory Board provide that the Supervisory Board should be composed of a majority
of independent members, though this is not a mandatory requirement. All current members of our Supervisory
Board are independent.
● NASDAQ Listing Rule 5605(b)(2) requires listed companies to hold regularly scheduled meetings at which only
independent directors are present (“executive sessions”). While German law does not require a company to hold
regularly scheduled executive sessions, our Supervisory Board is comprised only of independent members and
meets regularly with only independent members present.
● NASDAQ Listing Rule 5605(c)(1) requires listed companies to have a written audit committee charter. German law
does not require a separate charter for an audit committee. Instead, the responsibilities and authority of our Audit
Committee are set forth in the rules of procedure of our Supervisory Board and in the applicable German laws.
● NASDAQ Listing Rule 5605(c)(2)(A) requires each member of the audit committee of a listed company to be
independent and financially literate, and also requires that at least one audit committee member have accounting or
related financial management expertise. German law does not require that all members of the audit committee are
independent. The rules of procedure of our Supervisory Board only stipulate that the members of our Supervisory
Board shall be “sufficiently” independent and that our Supervisory Board’s proposals for the election of new
members shall take into account that the majority of our Supervisory Board shall be composed of – in the
Supervisory Board’s opinion – independent members. Furthermore, German law requires only that one supervisory
board member have knowledge in the areas of accounting or auditing. Accordingly, the rules of procedure of our
Supervisory Board stipulate that the chairman of our Audit Committee shall have special knowledge and experience
of the application of accounting principles and internal control procedures. The chairman of the Audit Committee,
Peter Nietzer, fulfills these requirements. Although we believe that all members of our Audit Committee are
financially literate, neither German law, nor the rules of procedure of our Supervisory Board, require all members
of our Audit Committee to be financially literate.
● NASDAQ Listing Rule 5605(d)(1) requires listed companies to have a written compensation committee charter.
German law does not require a separate charter for a compensation committee. Instead, the responsibilities and
authority of our Compensation and Nomination Committee are set forth in the rules of procedure of our
Supervisory Board and in the applicable German laws.
● NASDAQ Listing Rule 5605(d)(2) requires listed companies to have a compensation committee consisting of at
least two members, each of whom is independent as defined under NASDAQ Rule 5605(a)(2) and in consideration
of all factors specifically relevant to determining whether a director has a relationship to the company which is
material to that director’s ability to be independent from management in connection with the duties of a
compensation committee member. The German Corporate Governance Code recommends that the chairman of the
compensation committee shall be independent from the company and the management board. Our Supervisory
Board also serves as our Compensation Committee, and all three members of our Supervisory Board are
independent and and do not to have any relationship with the Company’s management that is material to the
members’ ability to be independent from management.
● NASDAQ Listing Rule 5605(e)(1) requires independent director involvement in the selection of director nominees,
by having a nominations committee comprised solely of independent directors and by having director nominees
selected or recommended by a majority of its independent directors meeting in executive session. German law does
not stipulate specific requirements for the members of a nominations committee. Our Supervisory Board also serves
as our Nomination Committee, and all three members of our Supervisory Board are independent and are actively
involved in the selection and/or recommendation of member nominees.
● NASDAQ Listing Rule 5605(e)(2) requires listed companies to have a written charter or board resolution, as
applicable, addressing the nominations process and related matters required under federal securities laws. German
law does not require a separate charter or resolution for the nominations process. Instead, the
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responsibilities and authority of our Compensation and Nomination Committee are set forth in the rules of
procedure of our Supervisory Board and in the applicable German laws.
● NASDAQ Listing Rule 5620(c) requires listed companies’ bylaws to provide for a quorum of at least 33 1/3 percent
of the outstanding shares of the company’s common voting stock. German law does not require a specific quorum
for the general meeting and such requirement is not stipulated in our articles of association.
● NASDAQ Listing Rule 5635 requires listed companies to obtain shareholder approval before undertaking any of
the following transactions: (a) acquiring the stock or assets of another company, where such acquisition results in
the issuance of 20% or more of their outstanding share capital or voting power; (b) entering into any change of
control transaction; (c) establishing or materially amending any equity compensation arrangement; and (d) entering
into any transaction other than a public offering involving the sale, issuance or potential issuance by us of shares (or
securities convertible into or exercisable for shares) equal to 20% or more of their outstanding share capital or 20%
or more of the voting power outstanding before the issuance for less than the greater of book or market value of the
stock. In contrast, according to the German Stock Corporation Act, approval by the general shareholders’ meeting
is generally required for the issuance of any shares as well as any securities granting the respective holder the right
to acquire shares (including options and convertibles), subject to certain exceptions.
ITEM 16H. MINE SAFETY DISCLOSURE
Not applicable.
ITEM 17. FINANCIAL STATEMENTS
We have elected to provide financial statements pursuant to Item 18.
PART III
ITEM 18. FINANCIAL STATEMENTS
See the following items starting at page F-1:
(a) Report of Independent Registered Public Accounting as of and for the year ended December 31, 2020
(b) Report of Independent Registered Public Accounting as of December 31, 2019 and for each of the two years ended
December 31, 2019
(c) Consolidated Statements of Financial Position as of December 31, 2020 and 2019
(d) Consolidated Statements of Comprehensive Loss for the years ended December 31, 2020, 2019, and 2018
(e) Consolidated Statements of Changes in Equity for the years ended December 31, 2020, 2019, and 2018
(f) Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019, and 2018
(g) Notes to the Consolidated Financial Statements
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ITEM 19. EXHIBITS
Exhibit
Number
Description of Exhibit
1.1 Articles of Association of voxeljet AG, as amended (incorporated by reference to Exhibit 3.1 to the Company’s
Form 6-K, filed with the Securities and Exchange Commission (the “Commission”) on November 27, 2018).
1.2 Rules of Procedure of the Supervisory Board of voxeljet AG (incorporated by reference to Exhibit 3.2 to the
Company’s Registration Statement on Form F-1 (No. 333-191213), filed with the Commission on October 7, 2013).
1.3 Rules of Procedure of the Management Board of voxeljet AG (incorporated by reference to Exhibit 3.3 to the
Company’s Registration Statement on Form F-1 (No. 333-191213), filed with the Commission on October 7, 2013).
2.1 Form of specimen of ordinary registered share certificate and English translation (incorporated by reference to
Exhibit 4.1 to the Company’s Registration Statement on Form F-1 (No. 333-191213), filed with the Commission on
October 11, 2013).
2.2 Form of Deposit Agreement (incorporated by reference to Exhibit 99-a to the Company’s Registration Statement on
Form F-6 (No. 333-191526), filed with the Commission on October 15, 2013).
2.3 Form of Amendment No. 1 to Deposit Agreement (incorporated by reference to Exhibit 99-(a)(i) to the Company’s
Registration Statement on Form F-6 (No. 333-191526), filed with the Commission on July 31, 2020).
2.4 Form of American Depositary Receipt (included in Exhibit 2.3).
2.5* Description of Securities registered under Section 12 of the Exchange Act.
4.1† Cross License Agreement between voxeljet AG (formerly known as Voxeljet Technology GmbH) and BEGO
Medical GmbH, dated August 21, 2012 (English translation) (incorporated by reference to Exhibit 10.3 to the
Company’s Registration Statement on Form F-1 (No. 333-191213), filed with the Commission on October 7, 2013).
4.2† Nonexclusive Patent License and Sublicense Agreement between Z Corporation and voxeljet AG (formerly known
as Voxeljet Technology GmbH), dated August 16, 2004 (incorporated by reference to Exhibit 10.4 to the Company’s
Registration Statement on Form F-1 (No. 333-191213), filed with the Commission on October 7, 2013).
4.3 First Amendment to the Nonexclusive Patent License and Sublicense Agreement between Z Corporation and
voxeljet AG (formerly known as Voxeljet Technology GmbH), dated March 31, 2011 (incorporated by reference to
Exhibit 10.5 to the Company’s Registration Statement on Form F-1 (No. 333-191213), filed with the Commission on
October 7, 2013).
4.4† Patent and Know-How Transfer Agreement between voxeljet AG (formerly known as Generis GmbH) and The
ExOne Company (formerly known as Extrude Hone GmbH) , dated June 27, 2003 (incorporated by reference to
Exhibit 10.6 to the Company’s Registration Statement on Form F-1 (No. 333-191213), filed with the Commission on
October 7, 2013).
4.5† Amendment to Patent and Know-How Transfer Agreement between voxeljet AG (formerly known as Voxeljet
Technology GmbH) and Prometal RCT GmbH, dated July 14, 2009 (incorporated by reference to Exhibit 10.7 to the
Company’s Registration Statement on Form F-1 (No. 333-191213), filed with the Commission on October 7, 2013).
4.6† Form of Finance Contract between European Investment Bank and voxeljet AG, dated November 9, 2017
(incorporated by reference to Exhibit 99.2 to the Company’s Report on Form 6-K, filed with the Commission on
November 9, 2017).
4.7** Waiver Letter relating to Articles 7.1, 7.5 and 9.1 of the Finance Contract between European Investment Bank and
voxeljet AG, dated March 12, 2020 (incorporated by reference to Exhibit 10.1 to the Company’s Report on Form 6-
K filed with the Commission on March 18, 2020).
4.8** Form of Amendment Letter no. 1 to Finance Contract between European Investment Bank and voxeljet AG, dated
May 29, 2020 (incorporated by reference to Exhibit 99.2 to the Company’s Report on Form 6-K, filed with the
Commission on June 1, 2020).
4.9*** Form of Waiver of a breach under the Finance Contract and Amendment Letter to the Finance Contract between
European Investment Bank and voxeljet AG, dated March 26, 2021.
4.10† Form of First Demand Guarantee Agreement between European Investment Bank and voxeljet America Inc., dated
November 9, 2017 (incorporated by reference to Exhibit 99.3 to the Company’s Report on Form 6-K, filed with the
Commission on November 9, 2017).
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Exhibit
Number
Description of Exhibit
4.11† Form of Synthetic Warrant Agreement between European Investment Bank and voxeljet AG, dated November 9,
2017. (incorporated by reference to Exhibit 99.4 to the Company’s Report on Form 6-K, filed with the Commission
on November 9, 2017).
4.12** Form of Amendment and Restatement Agreement to the Synthetic Warrant Agreement between European
Investment Bank and voxeljet AG, dated May 29, 2020 (incorporated by reference to Exhibit 99.3 to the
Company’s Report on Form 6-K, filed with the Commission on June 1, 2020).
4.13 Form of Amendment Letter to the Synthetic Warrant Agreement between European Investment Bank and voxeljet
AG, dated September 30, 2020 (incorporated by reference to Exhibit 99.1 to the Company’s Report on Form 6-K,
filed with the Commission on September 30, 2020).
4.14# Management Board Member’s Contract of Service between voxeljet AG and Dr. Ingo Ederer, dated November 12,
2020 (incorporated by reference to Exhibit 10.1 to the Company’s Report on Form 6-K, filed with the Commission
on November 12, 2020).
4.15# Management Board Member’s Contract of Service between voxeljet AG and Rudolf Franz, dated November 12,
2020 (incorporated by reference to Exhibit 10.2 to the Company’s Report on Form 6-K, filed with the Commission
on November 12, 2020).
4.16 Form of Irrevocable Undertaking between certain investors and voxeljet AG, dated January 15, 2021 (incorporated
by reference to Exhibit 10.1 to the Company’s Report on Form 6-K, filed with the Commission on January 25,
2021).
4.17 Placement Agent Agreement between A.G.P./Alliance Global Partners and voxeljet AG, dated January 15, 2021
(incorporated by reference to Exhibit 10.2 to the Company’s Report on Form 6-K, filed with the Commission on
January 25, 2021).
8.1* Subsidiaries of voxeljet AG.
12.1* Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
12.2* Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
13.1* Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.
13.2* Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002.
15.1* Consent of PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft as of and for the year ended
December 31, 2020.
15.2* Consent of KPMG AG Wirtschaftsprüfungsgesellschaft as of December 31, 2019 and for each of the two years
ended December 31, 2019.
101.INS XBRL Instance Document
101.SCH XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
101.LAB XBRL Taxonomy Extension Label Linkbase Document
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
*
†
Filed herewith.
Confidential treatment has been granted with respect to certain portions of this exhibit. Omitted portions have been filed
separately with the Commission.
** Confidential portions of this exhibit have been redacted in accordance with Item 601(b)(10) of Regulation S-K promulgated
by the Commission. Omitted portions will be filed separately with the Commission upon the Commission’s request.
Represents managmement contract or compensatory plan or arrangement.
#
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The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused
and authorized the undersigned to sign this annual report on its behalf.
SIGNATURE
Date: March 30, 2021
VOXELJET AG
/s/ Rudolf Franz
Name: Rudolf Franz
Title: Chief Financial Officer
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voxeljet AG
INDEX TO FINANCIAL STATEMENTS
Consolidated Financial Statements of voxeljet AG:
Report of Independent Registered Public Accounting Firm PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft F-2
F-5
Report of Independent Registered Public Accounting Firm KPMG AG Wirtschaftsprüfungsgesellschaft
F-7
Consolidated Statements of Financial Position as of December 31, 2020 and 2019
F-8
Consolidated Statements of Comprehensive Loss for the years ended December 31, 2020, 2019, and 2018
F-9
Consolidated Statements of Changes in Equity for the years ended December 31, 2020, 2019, and 2018
F-10
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019, and 2018
F-11
Notes to the Consolidated Financial Statements
Page
F-1
Table of Contents
Report of Independent Registered Public Accounting Firm PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
To the Shareholders and Supervisory Board of voxeljet AG
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of financial position of voxeljet AG and its subsidiaries (the
“Company”) as of December 31, 2020, and the related consolidated statements of comprehensive loss, changes in equity and cash
flows for the year then ended, including the related notes (collectively referred to as the “consolidated financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company
as of December 31, 2020, and the results of its operations and its cash flows for the year then ended in conformity with
International Financial Reporting Standards as issued by the International Accounting Standards Board.
We also have audited the adjustments to revise the 2019 and 2018 consolidated financial statements for the correction of errors
and retrospective adjustments, as described in Note 2 of the financial statements. In our opinion, such adjustments are appropriate
and have been properly applied. We were not engaged to audit, review, or apply any procedures to the 2019 or 2018 consolidated
financial statements of the Company other than with respect to the adjustments and, accordingly, we do not express an opinion or
any other form of assurance on the 2019 or 2018 consolidated financial statements taken as a whole.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on the Company’s consolidated financial statements based on our audit. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to
the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audit of these consolidated financial statements in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an
understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of
the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements,
whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a
test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial
statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or
disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or
complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated
financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate
opinion on the critical audit matter or on the accounts or disclosures to which it relates.
F-2
Table of Contents
Recognition and Valuation of Embedded Derivative Financial Instruments
As described in Notes 2 to the consolidated financial statements, the Company has recognized embedded derivative financial
assets amounting to kEUR 2,367 and embedded derivative financial liabilities amounting to kEUR 808 (collectively, the
embedded derivative financial instruments), which are presented as current assets and liabilities, respectively. The embedded
derivative financial instruments, which are embedded in Tranche A and B1 of the loan granted in EUR by the European
Investment Bank (“EIB”), are required to be bifurcated and accounted for separate from the host contract because their value is
dependent on the share price of the Company, which is not clearly and closely related to the host contract. The embedded
derivative financial instruments are revalued at each balance sheet date, with changes in their fair value recorded within financial
result of the consolidated statements of comprehensive loss. The fair value of the embedded derivative financial instruments,
which are not traded in an active market, is determined by management using valuation techniques which are dependent on inputs
such as share prices, share volume, discount rates and foreign currency exchange rates. Finance income (Tranche A) and expense
(Tranche B1) resulting from the revaluations described above amounted to kEUR 93 and kEUR 808, respectively, for the year
ended December 31, 2020.
The principal considerations for our determination that performing procedures relating to the recognition and valuation of
embedded derivative financial instruments is a critical audit matter are that there is significant judgment and estimation by
management when evaluating the recognition and valuation of the embedded derivative financial instruments. This in turn led to
a high degree of auditor judgement, subjectivity, and effort in performing procedures to evaluate management’s conclusion on the
recognition and valuation of the embedded derivative financial instruments. Furthermore, the audit effort involved the use of
professionals with specialized skill and knowledge to assist in performing these procedures and evaluating the audit evidence
obtained. As disclosed by management, a material weakness existed related to this matter.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall
opinion on the consolidated financial statements. These procedures included, among others,
F-3
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i. executing initial audit procedures regarding the appropriateness of the initial recognition and valuation of the embedded
derivative financial instruments as they were bifurcated from the host contract, the valuation techniques used as well as the
reasonableness of management’s assumptions and estimates included in the calculation of fair values of the embedded
derivative financial instruments,
ii. evaluating management’s process for determining the fair values of the embedded derivative financial instruments as well as
the recognition of deferred tax assets and liabilities on the embedded derivative financial instruments,
iii. evaluating the appropriateness of valuation techniques used as well as the reasonableness of management’s assumptions and
estimates included in the calculation of fair values of the embedded derivative financial instruments,
iv. evaluating the quantitative factors (which consider share prices, discount rates and currency exchange rates) used by the
Company in the calculation of the fair values of the embedded derivative financial instruments to source data provided by the
Company and/or to externally available data,
v. evaluating the compliance of the underlying assumptions and input factors used in the fair value calculations performed by the
Company for the determination of the fair values of the embedded derivative financial instruments with the terms of the loan
agreements, including the correct application of the formulas used in the fair value calculations,
vi. assessing the permanence of methods used for the determination of deferred tax assets and liabilities on the embedded
derivative financial instruments and
vii.evaluating management’s assessment to the disclosure requirements in reference to the embedded derivative financial
instruments including their maturity and the Company’s compliance with financial covenants referenced in the agreement
with the EIB.
Munich, Germany
March 30, 2021
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
/s/ Katharina Deni
Wirtschaftsprüfer
(German Public Auditor)
We have served as the Company's auditor since 2020.
/s/ Sebastian Stroner
Wirtschaftsprüfer
(German Public Auditor)
F-4
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Report of Independent Registered Public Accounting Firm KPMG AG Wirtschaftsprüfungsgesellschaft
To the Stockholders and Supervisory Board
voxeljet AG:
Opinion on the Consolidated Financial Statements
We have audited, before the effects of the adjustments for the correction of the errors and retrospective adjustments described in
Note 2, the consolidated statement of financial position of voxeljet AG and subsidiaries (the Company) as of December 31, 2019,
the related consolidated statements of comprehensive loss, changes in equity, and cash flows for each of the years in the two-year
period ended December 31, 2019, and the related notes (collectively, the consolidated financial statements). The 2019 and 2018
consolidated financial statements before the effects of the adjustments described in Note 2 are not presented herein. In our
opinion, except for the errors and retrospective adjustments described in Note 2, the consolidated financial statements present
fairly, in all material respects, the financial position of the Company as of December 31, 2019, and the results of its operations
and its cash flows for each of the years in the two-year period ended December 31, 2019, in conformity with International
Financial Reporting Standards as issued by the International Accounting Standards Board.
We were not engaged to audit, review, or apply any procedures to the adjustments for the correction of the errors or retrospective
adjustments described in Note 2, and accordingly, we do not express an opinion or any other form of assurance about whether
such adjustments are appropriate and have been properly applied. Those adjustments were audited by other auditors.
Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going
concern. As discussed in Note 2 to the consolidated financial statements, the Company has suffered recurring losses and negative
cash flows from operations and has breached debt covenants as of December 31, 2019 that raise substantial doubt about its ability
to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The consolidated
financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Change in Accounting Principle
As discussed in Note 3 to the consolidated financial statements, the Company changed its method of accounting for leases as of
January 1, 2019 due to the adoption of IFRS 16, Leases.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the
Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement,
whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over
financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over
financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements,
whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a
test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by
F-5
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management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits
provide a reasonable basis for our opinion.
We served as the Company’s auditor from 2007 to 2020.
Munich, Germany
May 7, 2020
F-6
Table of Contents
Current assets
Cash and cash equivalents
Financial assets
Trade receivables
Inventories
Income tax receivables
Other assets
Non-current assets
Financial assets
Intangible assets
Property, plant and equipment
Investments in joint venture
Other assets
Total assets
Current liabilities
Trade payables
Contract liabilities
Financial liabilities
Other liabilities and provisions
Non-current liabilities
Deferred tax liabilities
Financial liabilities
Other liabilities and provisions
voxeljet AG
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Notes
3
3, 12
3, 7
8
3, 12
10
10, 21
Notes
3
3
3, 12, 20
11
3, 12, 20
11
25
25
3
December 31,
2020
2019 (1) (2)
(€ in thousands)
28,137
5,324
5,351
4,680
11,394
31
1,357
25,090
5
1,143
23,774
27
141
53,227
31,513
4,368
7,408
5,915
12,459
39
1,324
31,052
2,279
1,356
27,343
30
44
62,565
December 31,
2020
2019 (1) (2)
(€ in thousands)
26,215
1,956
2,911
19,770
1,578
7,371
52
7,314
5
19,641
4,836
88,748
(75,463)
1,675
19,796
(155)
53,227
18,855
2,797
2,623
11,290
2,145
10,192
142
9,866
184
33,518
4,836
88,077
(60,124)
742
33,531
(13)
62,565
Equity
Subscribed capital
Capital reserves
Accumulated deficit
Accumulated other comprehensive income
Equity attributable to the owners of the company
Non-controlling interests
Total equity and liabilities
See accompanying notes to these consolidated financial statements.
(1) Comparative figures for the year ended December 31, 2019 were revised related to the amendment of classification of short-
term investments. For further information, see Note 2 “Preparation of financial statements” to the consolidated financial
statements.
(2) Comparative figures for the year ended December 31, 2019 were revised related to the recalculation of the performance
participation interest related to the Finance Contract with the EIB. For further information, see Note 2 “Preparation of financial
statements” to the consolidated financial statements.
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voxeljet AG
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Revenues
Cost of sales
Gross profit
Selling expenses
Administrative expenses
Research and development expenses
Other operating expenses
Other operating income
Operating loss
Finance expense
Finance income
Financial result
Loss before income taxes
Income tax (expense) income
Net loss
Other comprehensive income (loss) that may be reclassified subsequently to profit or
loss
Total comprehensive loss
Loss attributable to:
Owner of the Company
Non-controlling interests
Total comprehensive loss attributable to:
Owner of the Company
Non-controlling interests
Weighted average number of ordinary shares outstanding
Loss per share - basic/diluted (EUR)
Year Ended December 31,
2019 (1) (2)
2020
2018 (1) (2) (3)
Notes (€ in thousands, except share and share data)
26,009
3, 18
(16,864)
13
9,145
(7,332)
(5,587)
(6,334)
(751)
1,297
(9,562)
(1,279)
2,158
879
(8,683)
(64)
(8,747)
21,567
(14,812)
6,755
(5,816)
(6,407)
(6,500)
(2,799)
1,603
(13,164)
(2,589)
184
(2,405)
(15,569)
88
(15,481)
24,602
(17,426)
7,176
(7,118)
(6,952)
(7,212)
(945)
2,143
(12,908)
(1,349)
318
(1,031)
(13,939)
(39)
(13,978)
15
15
15
14
14
16
933
(577)
(61)
(14,548)
(14,555)
(8,808)
(15,339)
(142)
(15,481)
(14,406)
(142)
(14,548)
(13,714)
(264)
(13,978)
(14,291)
(264)
(14,555)
(8,711)
(36)
(8,747)
(8,772)
(36)
(8,808)
4,836,000
(3.20)
4,836,000
(2.89)
3,940,636
(2.22)
See accompanying notes to these consolidated financial statements.
(1) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the amendment of
classification of short-term investments. For further information, see Note 2 “Preparation of financial statements” to the
consolidated financial statements.
(2) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the recalculation
of the performance participation interest related to the Finance Contract with the EIB. For further information, see Note 2
“Preparation of financial statements” to the consolidated financial statements.
(3) The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further information, see Note 3 “Summary of significant accounting
policies” to the consolidated financial statements.
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voxeljet AG
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to the owners of the company
(€ in thousands)
Subscribed
capital
Capital
reserves
Accumulated
deficit
Accumulated
other
comprehensive
gain (loss)
Total
Non-controlling
interests
Total equity
Balance at January 1, 2018(1) (2)
(3)
Loss for the period (1) (2)
Foreign currency translation
Capital increase
Equity-settled share-based
payment
Balance at December 31, 2018
(1) (2) (3)
Loss for the period (1) (2)
Foreign currency translations
Equity-settled share-based
payment
Share-based payment transaction
with the non-controlling
shareholder of a subsidiary
Balance at December 31, 2019
(1) (2)
Loss for the period
Foreign currency translations
Equity-settled share-based
payment
Balance at December 31, 2020
3,720 76,227
--
--
1,116
--
--
--
9,972
604
4,836 86,803
--
--
--
--
--
--
671
603
4,836 88,077
--
--
--
--
--
671
(37,699)
(8,711)
--
--
--
(46,410)
(13,714)
--
--
--
(60,124)
(15,339)
--
--
1,380
--
(60)
--
--
1,320
--
(578)
--
--
742
--
933
--
4,836 88,748
(75,463)
1,675
43,628
(8,711)
(60)
11,088
604
46,549
(13,714)
(578)
671
603
33,531
(15,339)
933
671
19,796
71
(36)
--
--
--
35
(264)
--
--
216
(13)
(142)
--
--
(155)
43,699
(8,747)
(60)
11,088
604
46,584
(13,978)
(578)
671
819
33,518
(15,481)
933
671
19,641
See accompanying notes to these consolidated financial statements.
(1) Comparative figures for the year ended December 31, 2019, December 31, 2018 and January 1, 2018 were revised related to
the amendment of classification of short-term investments. For further information, see Note 2 “Preparation of financial
statements” to the consolidated financial statements.
(2) Comparative figures for the year ended December 31, 2019 December 31, 2018 and January 1, 2018 were revised related to
the recalculation of the performance participation interest related to the Finance Contract with the EIB. For further information,
see Note 2 “Preparation of financial statements” to the consolidated financial statements.
(3) The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further information, see Note 3 “Summary of significant accounting
policies” to the consolidated financial statements.
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voxeljet AG
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash Flow from operating activities
Loss for the period
Depreciation and amortization
Foreign currency exchange differences on loans to subsidiaries
Changes in financial assets due to fair value valuation
Share-based compensation expense
Change in impairment of trade receivables
Non-cash expense on financial liabilities
Change in fair value of derivative equity forward
Change in inventory allowance
Interest paid
Interest received
Loss on disposal of intangibles and property, plant and equipment
Other
Change in working capital
Trade and other receivables, inventories and current assets
Trade payables
Other liabilities, contract liabilities and provisions
Change in restricted cash
Income tax payable/receivables
Total
Cash Flow from investing activities
Payments to acquire property, plant and equipment and intangible assets
Proceeds from disposal of financial assets
Payments to acquire financial assets
Interest received
Other
Total
Cash Flow from financing activities
Repayment of bank overdrafts and lines of credit
Repayment of sale and leaseback obligation
Repayment of lease liabilities (2018): Repayment of finance lease obligations)
Repayment of long-term debt
Proceeds from issuance of long-term debt
Proceeds from issuance of shares
Interest paid
Total
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Changes to cash and equivalents due to foreign exchanges rates
Cash and cash equivalents at end of period
2020
Year Ended December 31,
2019 (1) (2)
(€ in thousands)
2018 (1) (2) (3)
(15,481)
3,442
1,466
11
671
29
1,505
715
(1)
258
(92)
42
63
774
1,501
(781)
(417)
463
8
(6,598)
(139)
4,962
(994)
92
--
3,921
--
--
(412)
(863)
5,000
--
(258)
3,467
790
4,368
166
5,324
(13,978)
4,211
(828)
(174)
671
15
874
106
(21)
320
(93)
354
92
1,859
(759)
358
2,286
--
(26)
(6,592)
(1,100)
8,373
(2,725)
93
--
4,641
--
--
(397)
(969)
529
--
(320)
(1,157)
(3,108)
7,402
74
4,368
(8,747)
3,506
(340)
119
604
227
781
(2,028)
(417)
231
(42)
--
111
(1,336)
(1,390)
(310)
375
--
(11)
(7,331)
(3,812)
10,475
(8,884)
42
--
(2,179)
(58)
(324)
(37)
(2,764)
1,639
11,088
(231)
9,313
(197)
7,569
30
7,402
See accompanying notes to these consolidated financial statements.
(1) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the amendment of
classification of short-term investments. For further information, see Note 2 “Preparation of financial statements” to the
consolidated financial statements.
(2) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the recalculation
of the performance participation interest related to the Finance Contract with the EIB. For further information, see Note 2
“Preparation of financial statements” to the consolidated financial statements.
(3) The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further information, see Note 3 “Summary of significant accounting
policies” to the consolidated financial statements.
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Table of Contents
Basis of preparation
1. The reporting entity
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
voxeljet AG (in the following referred to as ‘voxeljet’, ‘Group’, or the ‘Company’) is a high-tech company
headquartered in Friedberg, Germany which is listed on the NASDAQ Capital Market (“NASDAQ”). The Company consists of
voxeljet AG, voxeljet America Inc. (voxeljet America), voxeljet UK Ltd. (voxeljet UK), voxeljet India Pvt. Ltd (voxeljet India)
and voxeljet China Co. Ltd. (voxeljet China). voxeljet AG owns 100% of the issued and outstanding shares of voxeljet America,
voxeljet UK and voxeljet India, as well as 70.00% of voxeljet China. In December 2020, management initiated the wind-up of
voxeljet UK. For further information, see Note 9 to the consolidated financial statements.
As previously disclosed, on August 18, 2020, the Company announced that it would voluntarily transfer the listing of its
American Depositary Shares (“ADSs”) from the New York Stock Exchange (the “NYSE”) to the NASDAQ, effective August 28,
2020, after market close. voxeljet’s ADSs began trading as a NASDAQ-listed security at market open on August 31, 2020, and
have continued to be listed under the ticker symbol “VJET.”
As previously disclosed, on July 31, 2020, the Company announced that it would change the ratio of its ADSs to
ordinary shares from each ADS representing one-fifth (1/5) of one ordinary share (5:1) to each ADS representing one ordinary
share (1:1). For ADS holders, the ratio change had the same effect as a 1 for 5 reverse ADS split. The ratio change became
effective on August 14, 2020 (the “Effective Date”). On the Effective Date, each ADS holder was required to exchange every
five (5) ADSs then held for one (1) new ADS (e.g., if a holder of ADSs previously held 50 ADSs, following the ratio change on
the Effective Date, such holder held 10 ADSs). Citibank, N.A., as depositary bank, has arranged for the exchange of the current
ADSs for the new ones. There was no change to voxeljet’s underlying ordinary shares.
As a manufacturer of three-dimensional (“3D”) printing systems, voxeljet specializes in the development, production
and distribution of industrial printing machines and the production and sale of customized printed products to industrial
customers. The Company operates in two business divisions: Systems and Services.
The voxeljet Systems business division develops, manufactures and sells innovative 3D printers. Today, voxeljet has a
product range that reaches from smaller entry models to large-format machines, and therefore offers 3D printer systems for a
wide range of application areas.
Through its Services business division, the Company offers customized printed products such as sand molds and plastic
models based on CAD data through its ‘on-demand production’ service centers. In addition, the Company offers casting services
to its customers. In those cases, the casting process is performed by external suppliers supported by voxeljet’s molds and models.
Small-batch and prototype manufacturers utilize the Company’s machines for the automatic, patternless manufacture of their
casting molds and 3D models. The Company’s customer base includes automotive manufacturers, aerospace industries, foundries
and suppliers as well as companies from the arts and design industries as well as universities and research institutes.
2. Preparation of financial statements
The consolidated financial statements of the Group have been prepared in accordance with International Financial
Reporting Standards (IFRS) as set forth by the International Accounting Standards Board (IASB) and interpretations of the IFRS
Interpretations Committee (IFRIC).
The consolidated financial statements were authorized for issue by the Management Board on March 30, 2021.
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Table of Contents
These consolidated financial statements were prepared on the basis of historical cost except for the following items,
which are measured on an alternative basis on each reporting date.
Debt securities at fair value through profit or loss
Non-derivative financial instruments at fair value through profit or loss
Derivative financial instruments at fair value through profit or loss
Fair value
Fair value
Fair value
The consolidated financial statements are presented in thousands of Euros (kEUR) except where otherwise stated. Due
to rounding, numbers presented throughout these notes may not add up precisely to the totals provided and percentages may not
precisely reflect the absolute figures.
Going concern
The financial statements have been prepared on the basis of going concern which contemplates continuity of normal
business activities and the realization of assets and settlement of liabilities in the ordinary course of business.
voxeljet has recognized continuous net losses during the years 2020, 2019 and 2018 amounting to kEUR 15,481, kEUR
13,978 and kEUR 8,747, respectively. Additionally, voxeljet had negative cash flows from operating activities in 2020, 2019 and
2018 of kEUR 6,598, kEUR 6,592, kEUR 7,331, respectively, mainly due to continuous net losses. As of May 7, 2020, the
issuance date of the Company’s consolidated financial statements for the year ended December 31, 2019, the Company had
concluded there was a material uncertainty that cast significant doubt on the Company's ability to continue as a going concern. As
discussed below, management has subsequently taken certain actions, which management has concluded remove that significant
doubt.
Due to the global outbreak of COVID-19, the Company has experienced and expects to continue to experience lower
demand in both, the Systems and the Services segment. voxeljet’s clients have postponed and may continue to postpone larger
investments and therefore, the demand for 3D printers may also decrease. In addition, the COVID-19 situation could cause
further delays in installation of 3D printers at customers’ facilities, which could lead to postponed revenue recognition for those
transactions. In the third quarter of 2020, the Company experienced a slight recovery of demand compared to the prior two
quarters in 2020, and in the fourth quarter this positive trend has continued. Both a decrease in revenues as well as potential
delays in the installations increase the risk and likelihood of lower cash inflows. Such risks have been evaluated by management
and consequently have been considered in the Company’s liquidity forecast, which assumes voxeljet’s business plan is executed
appropriately and sales track as expected. Management updates the liquidity forecast on an ongoing basis.
The COVID-19 situation raises uncertainties regarding the achievement of budgeted sales and the fulfillment of
voxeljet’s budget. Consequently, the Company could experience difficulty in generating sufficient cash flow to meet its
obligations and sustain its operations. Material deviations from the forecasts could lead to a covenant breach in the future, which
could result in an acceleration of voxeljet’s obligation to repay all amounts outstanding under those facilities.
Despite the ongoing losses, reduced cash flow and cash facilities, and the other negative financial conditions,
management assumes that voxeljet will continue as a going concern, as the Company has been successful in drawing down
kEUR 5,000 of the second tranche (tranche B1) of the loan granted by the EIB under the Finance Contract in June 2020. This
improved the liquidity significantly. Also, the financial covenants under the Finance Contract have been renegotiated to replace
the Total Net Financial Debt to EBITDA ratio with a minimum cash/cash equivalents requirement (the “Minimum Cash
Covenant”). As of June 30, 2020, pursuant to the semi-annual financial testing prescribed by the Finance Contract, as amended,
the Company was in compliance with the Minimum Cash Covenant. However, in March 2021, the Company discovered that its
calculation of cash and cash equivalents for determining compliance with the Minimum Cash Covenant was incorrect and,
accordingly, the Company was not in compliance with the Minimum Cash Covenant as of December 31, 2020. Also in March
2021, the Company received a waiver from the EIB for the noncompliance with the Minimum Cash Covenant, pursuant to which
(i) the EIB agreed that it will not demand immediate repayment of the outstanding amounts owed and (ii) the EIB and the
Company amended the financial covenants in the Finance Contract to clarify the calculation of cash and cash equivalents for
determining compliance with the Minimum Cash Covenant.
In addition, the successful restructuring and the initiation of the wind-up of voxeljet UK, which included consolidating
3D printing to serve all customers in Europe from the German service center as well as transferring all
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employees to voxeljet AG has been finished. This helps to reduce overall costs and will lead to improved gross profit margins by
realizing economies of scale in the German service center. The wind-up of voxeljet UK will lead to further cost savings,
especially of administrative expenses. Management also initiated a restructuring program at the German entity during the fourth
quarter of 2019. This program included the reduction of headcount mainly in the Systems segment in order to streamline the
Company’s operations and optimize efficiency. This restructuring was successfully completed at the end of June 2020 and
already provides further cost reductions, which is reflected in our monthly detailed target-actual comparisons.
In January 2021, the Company has successfully completed its registered direct offering and sale of 621,170 ordinary
shares in the form of ADS at a purchase price of € 13.33 per share (this equals $16.16 per ordinary share based on the exchange
rate as of the close of business in New York on January 14, 2021). This provided voxeljet with gross proceeds of the offering
amount to approximately $10 million (€ 8.3 million) before deducting fees and expenses. In February 2021, the Company
completed another registered direct offering and sale of 443,414 ordinary shares in the form of ADS at a purchase price of
€ 22.27 per ordinary share (this equals $26.95 per ordinary share based on the exchange rate as of the close of business in New
York on February 9, 2021). This provided voxeljet with gross proceeds of approximately $12 million (€ 9.9 million) before
deducting fees and expenses. Those capital increases improved the Company’s liquidity as well as equity ratio significantly. In
spite of this success, management is taking further steps to raise further funds which may include debt or equity financing, not
without mentioning, that there can be no assurance that voxeljet will be able to raise further funds on terms favorable to the
Company, if at all.
Based on the Company’s current liquidity and capital resources in combination with the current liquidity forecasts, as
well as the implemented cost reduction program and the successful financing with the EIB, the waiver for the noncompliance
with the Minimum Cash Covenant as of December 31, 2020 and the registered direct offerings, management believes that the
Company has the ability to meet its financial obligations for at least the next 24 months and therefore continues as a going
concern.
Impairment test
Non-financial assets are tested for impairment if there are indicators that the carrying amounts may not be recoverable.
The Company considers the COVID-19 situation to be such an indicator. Therefore, voxeljet performed an impairment test for
the non-financial assets for the end of the reporting period. An impairment loss is recognized in the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is defined as the higher of an asset’s fair value less cost
to sell and its value in use. As individual assets do not generate largely independent cash flows, impairment testing is performed
at the cash generating unit level. An individual fixed asset within a CGU cannot be written down below fair value less cost
incurred to sell the individual asset. The impairment test, performed by management, did not lead to any write downs.
Revision to prior periods for correction of immaterial errors and retrospective adjustments to presentations and
disclosures
a) Amendment of classification of short-term investments
In the first quarter of 2020, the Company amended the classification of short-term investments included in current
financial assets. Before the amendment, those short-term investments have been classified in the category at fair value through
OCI (FVOCI).
The new classification shall be the category at fair value through profit and loss (FVTPL). Accordingly, prior periods
have been revised, which leads to movements between profit and loss and other comprehensive income as the changes in fair
value are now presented within finance income or expense.
b) Recalculation of performance participation interest related to the Finance Contract with the EIB
In the first quarter of 2020, the Company recalculated the performance participation interest related to the Finance
Contract with the EIB, due to a mistake in the calculation logic. Accordingly, prior periods have been revised, which leads to
adjustments in non current financial assets, deferred tax liabilities as well as equity.
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c) Impacts of amendment and recalculation
Due to the amendments and recalculations, which are described above, the opening balance as of January 1, 2018 of non
current financial assets as well as deferred tax liabilities have decreased by kEUR 37 and kEUR 10, respectively. The opening
balance as of January 1, 2018 of accumulated deficit increased by kEUR 27. Further, the loss for the year ended December 2018
decreased by kEUR 17. The opening balance as of January 1, 2019 of non current financial assets as well as deferred tax
liabilities have increased by kEUR 151 and kEUR 43, respectively. The opening balance as of January 1, 2019 of accumulated
deficit increased by kEUR 10, whereas the opening balance of accumulated other comprehensive gain increased by kEUR 118.
As a result, the loss for the year ended December 2019 decreased by kEUR 253.
As of December 31, 2018, non current financial assets as well as deferred tax liabilities have increased by kEUR 151
and kEUR 43, respectively. For the period ending December 31, 2018 the balance of accumulated deficit increased by kEUR 10,
whereas the balance of accumulated other comprehensive gain increased by kEUR 118. As of December 31, 2019, non current
financial assets as well as deferred tax liabilities have increased by kEUR 260 and kEUR 73, respectively. For the period ending
December 31, 2019 the balance of accumulated deficit decreased by kEUR 243, whereas the balance of accumulated other
comprehensive gain decreased by kEUR 56.
For the year ended December 2018 the loss was reduced by kEUR 17 whereas net changes in fair value of debt
investments at FVOCI was increased by kEUR 119. Further, the loss for the three months ended December 2019 was increased
by kEUR 93 whereas net changes in fair value of debt investments at FVOCI was increased by kEUR 14. For the year ended
December 2019 the loss was reduced by kEUR 253 whereas net changes in fair value of debt investments at FVOCI was reduced
by kEUR 174.
The Company has evaluated the effect of these amendments, both qualitatively and quantitatively, and concluded that
the change did not have a material impact on, nor require amendment of, any previously filed financial statements. Affected
financial statement line items for prior periods are appended with a footnote.
d) Retrospective adjustments to presentations and disclosures of prior period information
Additionally, the Company has applied retrospective adjustments to presentations and disclosures of prior period
information within the following footnotes:
-
Consolidated statements of cash flow:
The Company has revised the presentation of interest paid and interest received for the years ended December 31, 2018
and December 31, 2019 both previously disclosed under supplemental cash flow information, now presented in cash flow from
operating activities, cash flow from investing activities and cash flow from financing activities, respectively. Further, the
Company has revised the presentation of changes in financial assets due to fair value valuation as well as change in fair value of
derivative equity forward for the years ended December 31, 2018 and December 31, 2019 related to the amendment of
classification of short-term investments and the recalculation of performance participation interest related to the Finance Contract
with the EIB. As a consequence, the line item others has also been revised.
-
Note 12. Additional disclosures to financial instruments:
The Company has changed the categorization of the fair value of long-term debt in financial liabilities as of December
31, 2019 from level 2 to level 3.
-
Note 19. Financial risk management:
The Company revised the table contractual cash out flow as of December 31, 2019 regarding the three to five years
bucket by including the cash outflow of kEUR 2,918 from the performance participation interest related to tranche A of the loan
granted by the EIB.
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Table of Contents
-
Note 24. Related party transactions:
The Company has included Michele Neuber for his employment as working student within the related party disclosure.
His father Volker Neuber serves as a member of voxeljet’s supervisory board since July 2020.
3. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. Expect as
described below, these policies have been consistently applied to all years presented.
Consolidation
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
The financial statements of subsidiaries are included in the consolidated financial statements from the date that control
commences until the date that control ceases.
Intercompany balances and transactions are eliminated in preparing the consolidated financial statements.
A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of
the arrangement, rather than rights to its assets and obligations for its liabilities. Interests in the joint venture are accounted for
using the equity method. They are initially recognized at cost, which includes transaction costs. Subsequent to initial recognition,
the consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of equity-
accounted investees, until the date on which significant influence or joint control ceases.
Revenues from contracts with customers
Under IFRS 15, the Company recognizes revenue on the maintenance contracts based on the input method, such as the
number of service visits or the provision of certain goods, in particular printheads, to measure the progress that depicts the
transfer of control of the goods or services to the customer toward complete satisfaction of a performance obligation over time.
Therefore, the expected number of service visits and goods to be provided under a contract have been estimated by the
Company’s service department based on historical experience.
Revenue on the sale of new or refurbished 3D printers is recognized at the point in time after completed installation of
3D printers at the customer site and evidenced through final acceptance by the customer. Customers obtain control of the 3D
printers when the customers have accepted the assets. Refurbished 3D printers usually were produced for and used in our
Services segment. On average, these refurbished printers have been operating within a voxeljet service center for 1.5 to 2.5 years
prior to their sale. Before these 3D printers are sold, they are fully refurbished and a new printhead is installed. The cost of sales
include the residual value as well as the costs related to the refurbishment.
The Group provides customers with statutory warranty on all 3D printers for one year. The warranty presents assurance-
type warranty and is not treated as a separate performance obligation. After the initial one-year warranty period, the Group offers
its customers optional maintenance contracts, which are accounted for as separate performance obligations.
The Company, from time to time, offers to customers, to operate their purchased 3D printer and perform 3D printing on
custom-ordered printed products for a temporary period before the customers’ facility is configured according to required
technical specifications. The Company recognizes revenue for the use of space on Company premises over time under the term of
the contracts. The Company recognizes revenue from the sale of customized printed products from the customer’s purchased 3D
printer, upon transfer of control of ownership to the customers, generally upon shipment.
Revenue on the sale of customized printed products is recognized at the point in time when the control of ownership of
the assets is transferred to the customers, generally upon shipment.
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Shipping, packaging and handling costs billed to customers for the sales of customized printed products and
consumables are not considered as a separate performance obligation. The Company recognized the gross revenue at the point in
time as the service is provided, i.e. upon shipment. Costs incurred by the Company associated with shipping, packaging and
handling are included in selling expenses in the consolidated statements of comprehensive loss.
Invoices from revenue streams, besides the sale of new or refurbished 3D printers are usually payable within 30 to 60
days. The Company also recognizes that longer payment periods are customary in some countries where it transacts business. To
reduce credit risk in connection with machine sales, the Company may, depending upon the circumstances, requires advance
payments prior to shipment. On the sale of new or refurbished 3D printers, the Company generally require advance payments
prior to shipment and requires international customers to furnish letters of credit. These advance payments are recognized as
contract liabilities. Maintenance contracts are generally billed to customers in advance on a monthly, quarterly, or annual basis,
and are initially recorded as a contract liability as the Company has an enforceable right to payment after the contract has been
signed.
It is the Group’s policy that it does not offer products to the end customer with a right of return. Therefore, neither a
refund liability nor a right to the returned goods are recognized.
A contract liability is recognized when the Company has received consideration (i.e. advance payment) from customers
before satisfying a performance obligation or has an unconditional right to payment under a non-cancellable contract before it
transfers the related goods or services to the customer under maintenance and extended warranty contracts. The extended
warranty is considered as service-type warranty and therefore accounted as a separate performance obligation.
The contract liabilities primarily relate to (1) the advance consideration received from customers before satisfying a
performance obligation, or an unconditional right to payment under a non-cancellable contract before it transfers the related
goods or services to the customer under maintenance contracts, for which revenue is recognized over time; and (2) the advance
consideration received from customers for the sale of new or refurbished 3D printers, for which revenue is recognized when the
customer has accepted the assets. The total amount of unfulfilled performance obligations for 3D printer sales is € 6.8 million.
The Company expects to realize the entire amount in 2021. The amount of kEUR 772 included in contract liabilities at December
31, 2019 has been recognized as revenue in 2020 (2019: kEUR 584). Management expects that 96% (kEUR 2,794 ) of the
transaction price allocated to unsatisfied performance obligations as of December 31, 2020 will be recognized as revenue during
the next reporting period. The remaining 4% (kEUR 117) will be recognised in the 2022 financial year.
In the following table, revenue from contracts with customers is disaggregated by primary geographical market, and
timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the Group’s reportable
segments (see Note 18).
Year ended December 31,
2020
SYSTEMS
2019
2018
2020
SERVICES
2019
2018
Primary geographical markets
EMEA
Asia Pacific
Americas
Timing of revenue recognition
Products transferred at a point in time
Products and services transferred over time
Revenue from contracts with customers
5,926
3,612
3,018
12,556
11,366
1,190
12,556
4,951
5,371
3,132
13,454
12,332
1,122
13,454
5,592
4,704
1,952
12,248
11,188
1,060
12,248
5,540
909
2,562
9,011
9,011
--
9,011
6,314
931
3,903
11,148
11,148
--
11,148
9,081
746
3,934
13,761
13,761
--
13,761
In 2020, voxeljet leased one 3D printer (2019: two 3D printers and 2018: two 3D printer) to customers under operating
leases. Rental income is recognized on a straight-line basis over the term of the lease as revenue and is reported within the
Systems segment.
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Financial instruments
Financial instruments are contracts that give rise to a financial asset in one entity and a financial liability or equity
instrument in another entity. voxeljet recognizes financial assets and financial liabilities in the balance sheet when an entity of the
Group becomes a contractual party to the financial instrument.
All customary purchases and sales of financial assets are recognized on the trading date, i.e. the date on which the
Company enters into the obligation to purchase the asset.
Financial assets and financial liabilities are generally reported at gross value. Netting only applies if the offsetting of the
amounts is legally enforceable and it is intended to actually offset them. In general, voxeljet does not intend to offset any
amounts.
Initial measurement
At initial recognition, voxeljet measures a financial asset at its fair value plus, in the case of a financial asset at fair
value through other comprehensive income, transactions costs that are directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed immediately. Financial
liabilities are initially assigned to one of the following valuation categories in accordance with IFRS 9, measured at amortized
cost or measured at fair value through profit or loss.
Subsequent measurement
The subsequent measurement of voxeljet's financial assets is based on their classification:
-
-
-
-
at amortized cost: interest income from these financial assets is reported in the financial income using the effective
interest method. Gains and losses on derecognition are recorded in the income statement and, considering related foreign
currency gains and losses, reported under other operating income and expenses,
at fair value through profit or loss: Gains or losses of derivative financial instruments and short term investments, which
are subsequently measured at fair value through profit or loss, are included in the income statement as interest income or
interest expense in the period in which they arise.
The subsequent measurement of voxeljet’s financial liabilities depends on their classification as follows:
financial liabilities at fair value through profit or loss: This category includes derivative financial instruments that are
not designated as hedging instruments in accordance with IFRS 9 hedge accounting rules. Gains and losses are
recognized in the income statement.
Financial liabilities measured at amortized cost: This category includes trade payables and interest-bearing loans. After
initial recognition, these are measured at amortized cost using the effective interest method. Gains and losses are
recognized in profit or loss when the liabilities are derecognized as well as in case of amortization using the effective
interest method. Amortization according to the effective interest method is included in interest expenses in the profit and
loss account.
Derecognition
voxeljet derecognizes financial assets (or parts of their financial assets where applicable) when the rights to receive cash
flows from the financial asset have expired or have been transferred and the Group substantially transferred all opportunities and
risks associated with the ownership.
A financial liability is derecognized when the obligation under the liability is settled, cancelled or expired. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing
liability are substantially modified, this exchange or modification is treated as a derecognition of the original liability and the
recognition of a new liability. In case of minor changes in conditions a change in the present value will be considered in profit or
loss.
IFRS 9 sets out requirements for recognizing and measuring financial assets, financial liabilities and some contracts to
buy or sell non-financial items. This standard replaced IAS 39, Financial Instruments.
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The Company has applied the exemption not to restate comparative information for prior periods with respect to
classification and measurement (including impairment) requirements. Differences in the carrying amounts of financial assets and
financial liabilities resulting from the adoption of IFRS 9 are recognized in retained earnings and reserves as of January 1, 2018.
The details of accounting policies under IFRS 9 and the nature and effect of the changes to previous accounting policies
are set out below.
Classification and measurement of financial assets and financial liabilities
IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities.
However, it eliminates the previous IAS 39 categories for financial assets of held to maturity, loans and receivables and available
for sale.
Under IFRS 9, on initial recognition, a financial asset is classified as measured at: amortized cost (AC), fair value
through other comprehensive income (FVOCI), or fair value through profit or loss (FVTPL). The classification of financial assets
under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow
characteristics.
A financial asset is measured at amortized cost (AC) if it meets both of the following conditions and is not designated as
at FVTPL:
-
-
it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to record
subsequent changes in the investment’s fair value in OCI (FVOCI). This election is made on an investment-by-investment basis.
All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.
A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at
the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly
attributable to its acquisition.
Under IFRS 9, initially our short-term investments in bond funds were classified as fair value through other
comprehensive income (FVOCI). In the first quarter of 2020, we amended our classification of short-term investments included
in current financial assets as FVTPL. For further information, see Note 2.
voxeljet assesses expected future credit losses associated with financial assets measured at amortized cost based on
future expectations. A respective risk provision or, in case of an actual loss that already occurred, an impairment loss is
recognized.
-
General approach:
Generally, financial assets are considered as having a low default risk at initial recognition resulting in a 12-month
expected credit loss provision. In case of a significant increase in credit risk, the lifetime expected credit losses are recognized.
Amongst others debtor’s payment delays of more than 90 days are considered as an indicator for increase in default risk. Further,
when determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECLs, voxeljet considers reasonable and supportable information that is relevant and available without undue cost or
effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and
informed credit assessment and including forward-looking information.
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-
Simplified approach:
For trade receivables with no significant financing component voxeljet applies the simplified approach, which requires
lifetime expected credit losses to be recognized from initial recognition of the receivables.
In order to measure expected credit losses, trade receivables are summarized on the basis of common credit risk
characteristics and overdue days. The expected credit losses are based both quantitative and qualitative information and analysis,
based on the Group’s historical experience and informed credit assessment and including forward-looking information.
A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when they
fall due and there are no information available, which are contradictory e.g. the counterparty commits the payment to a later time
or the Company and the counterparty agreed upon a payment plan.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in
a repayment plan with the Company or a counterparty had declared insolvency. Where loans or receivables have been written off,
the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognised in profit or loss.
The Company’s financial assets at amortized cost consist of trade receivables and cash and cash equivalents. For cash
and cash equivalents the adoption of IFRS 9 did not have any impact regarding impairment.
Under IFRS 9, loss allowances are measured on either of the following bases:
-
-
12-months ECLs: these are ECLs that result from possible default events within the 12 months after the reporting
date; or
lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial
instrument.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and
when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical
experience and informed credit assessment and including forward-looking information.
Trade receivables
The Company considers trade receivables which are in default individually prior to the application of the ECL model to
the remaining population. The Company measures loss allowances for trade receivables at an amount equal to lifetime ECLs.
ECLs are a probability-weighted estimate of credit losses. The Company calculates the ECL based on the risk scoring of its
customers’ according to an external rating agency. Following the risk score of each customer, the trade receivables are clustered
into different grades. For each grade, the ECL is calculated after deducting from trade receivables a loss allowance based on
actual credit loss experience. In addition the Company uses qualitative assessment of the trade receivables, where default has
incurred.
Presentation of impairment
Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the
assets and presented within other operating expenses or other operating income.
Impact of the impairment model
For assets in the scope of the IFRS 9 impairment model, impairment losses are generally expected to increase and
become more volatile. For information about the exposure to credit risk and ECLs for trade receivables as of December 31, 2020
and 2019, please refer to Note 19.
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Cash and cash equivalents
Cash and cash equivalents are short-term bank deposits and are not subject to a significant risk of change in value due to
the excellent ratings of those banks to which voxeljet entrusted its funds.
Leases
The Group has initially adopted IFRS 16 Leases from January 1, 2019. IFRS 16 introduced a single, on-balance sheet
accounting model for lessees. As a result, the Group, as a lessee, has recognized right-of-use assets representing its rights to use
the underlying assets and lease liabilities representing its obligation to make lease payments. Lessor accounting remains similar
to previous accounting policies.
The Group has applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial
application is recognized in retained earnings as of January 1, 2019. Accordingly, the comparative information presented for
2018 has not been restated and is therefore presented as previously reported, under IAS 17 and related interpretations. The details
of changes in accounting are disclosed below. Additionally, the disclosure requirements in IFRS 16 have not generally been
applied to the comparative information.
Definition of a lease
Previously, the Company determined at contract inception whether an arrangement was or contained a lease under
IFRIC 4 Determining Whether an Arrangement contains a Lease. The Company now assesses whether a contract is or contains a
lease based on the new definition of a lease. Under IFRS 16, a contract is, or contains, a lease if the contract conveys a right to
control the use of an identified asset for a period of time in exchange for consideration.
On transition to IFRS 16, the Company elected to apply the practical expedient to grandfather the assessment of which
transactions are leases. It applies IFRS 16 only to contracts that were previously identified as leases. Contracts that were not
identified as leases under IAS 17 and IFRIC 4 were not reassessed. Therefore, the definition of a lease under IFRS 16 has been
applied only to contracts entered into or changed on or after January 1, 2019.
At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration
in the contract to each lease and non-lease component on the basis of their relative stand-alone prices.
The Company as a lessee
The Company leases assets, including properties, production equipment and vehicles. As a lessee, the Company
previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all
of the risks and rewards of ownership. Under IFRS 16, the Company recognizes right-of-use assets and lease liabilities for most
leases. These leases are on-balance sheet.
However, the Company has elected not to recognize right-of-use assets and lease liabilities for some leases of low-value
assets (e.g. tools) as well as short-term leases (leases with less than 12 months of lease term). The Company recognizes the lease
payments associated with these leases as an expense on a straight-line basis over the lease term.
The Company presents right-of-use assets in “property, plant and equipment”, in the same line item as it presents
underlying assets of the same nature that it owns. The carrying amounts of right-of-use assets are as below:
Balance at January 1, 2020
Balance at December 31, 2020
Property, plant and equipment
Property
Production equipment
(€ in thousands)
72
45
3,658
2,892
Others
Total
254
254
3,984
3,191
The Company presents lease liabilities within “financial liabilities” in the condensed consolidated statements of financial
position.
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Leases under IFRS 16
The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use
asset is initially measured at an amount equal to the lease liability, and subsequently at cost less any accumulated depreciation
and impairment losses, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the Company’s incremental borrowing rate.
The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured when
there is a change in the future lease payments arising from a change in an index or rate, a change in the estimate of the amount
expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether it will exercise a
purchase, extension or termination option.
The Company has applied judgement to determine the lease term for some lease contracts in which it is a lessee that
include renewal options. The assessment of whether the Company is reasonably certain to exercise such options impacts the lease
term, which significantly affects the amount of lease liabilities and right-of-use assets recognized.
Transition
Previously, the Company classified property plant and equipment leases as operating leases under IAS 17. These include
manufacturing facilities. The leases typically run for a period of three to ten years. Some leases include an option to renew the
lease for an additional three to five years after the end of the non-cancelable period.
At transition, for leases classified as operating leases under IAS 17, lease liabilities were measured at the present value
of the remaining lease payments, discounted at the Company’s incremental borrowing rates for similar assets as of
January 1, 2019. Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid
or accrued lease payments.
The Company used the following practical expedients when applying IFRS 16 to leases previously classified as
operating leases under IAS 17:
-
-
-
Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.
Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of
lease term.
Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.
The Company leases a small number of items of production equipment. These leases were classified as finance leases
under IAS 17. For these finance leases, the carrying amount of the right-of-use asset and the lease liability at January 1, 2019
were determined at the carrying amount of the lease asset and lease liability under IAS 17 immediately before that date.
The Company as a lessor
The Company leases out a small number of 3D printers. Those leases have been classified as operating leases.
The accounting policies applicable to the Company as a lessor are not different from those under IAS 17.
The Company is not required to make any adjustments on transition to IFRS 16 for leases in which it acts as a lessor.
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Impacts on financial statements
Impacts on transition
On transition to IFRS 16, the Company recognized additional right-of-use assets, including property, plant and
equipment and additional lease liabilities. The impact on transition is summarized below.
Right-of-use assets presented in property plant and equipment
Lease liabilities as presented in financial liabilities
Impact on adopting IFRS 16 at
January 1, 2019
(€ in thousands)
3,501
3,574
When measuring lease liabilities for leases that were classified as operating lease, the Company discounted lease
payments using its incremental borrowing rates as of January 1, 2019. The weighted-average rate applied was 4.55%.
Operating lease commitment at December 31, 2018, as disclosed in the Group's consolidated financial statements
Discounted using the incremental borrowing rate at January 1, 2019
Finance lease liability recognized as at December 31, 2018
Recognition exemption for leases with less than 12 months of lease term at transition
Extension options reasonably certain to be exercised
Lease liabilities recognized at January 1, 2019
Impacts for the period
January 1, 2019
(€ in thousands)
2,584
2,021
105
(84)
1,532
3,574
As a result of applying IFRS 16, in relation to the leases that were previously classified as operating leases, as of
December 31, 2020, the Company recognized kEUR 3,191 of right-of-use assets (as of December 2019: kEUR 3,984) and
kEUR 3,124 of lease liabilities (as of December 31, 2019: kEUR 3,610).
Also in relation to those leases under IFRS 16, the Company has recognized depreciation and interest costs, instead of
operating lease expenses. During the twelve months ended December 31, 2020, the Company recognized kEUR 682 (2019:
kEUR 765) of depreciation expenses and kEUR 167 (2019: kEUR 190) of interest expense from these leases.
Within the statement of cash flows, cash payments for the principal portion of lease payments, as well as for the interest
portion, have been classified as financing activities. Payments for short-term leases have been classified as operating activities.
Research and development expenses
All research and development costs are charged to expense as incurred as the criteria set forth in IAS 38 for capitalizing
such costs have not yet been met.
Government grants
Government grants awarded for project funding are recorded within other operating income in the consolidated
statement of comprehensive loss if the related research and development costs have been incurred and provided that the
conditions for the funding have been met. Until then, amounts received under government grants are recorded as deferred income
in the statements of financial position.
Government grants in connection with government assistance to help businesses to mitigate adverse impacts from the
COVID-19 global pandemic are recognized in profit or loss on a systematic basis over the periods in which the entity recognizes
as expenses the related costs for which the grants are intended to compensate, provided that the entity complies with the
conditions for the funding.
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Employee stock option plan
In April 2017, the Supervisory Board adopted and approved Option Plan 2017. The plan authorizes to grant shares of
equity-settled stock options to employees and members of the management board. The Company’s stock-based compensation
expense is estimated at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite
service period of the award. The Company calculates the fair value of each option award on the date of grant under the Monte
Carlo simulation model. The determination of the grant date fair value of the awards using a simulation model is affected by our
stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the expected
stock price volatility over the expected life of the awards, risk-free interest rates, and expected dividends. The risk free interest
rate is equal to the U.S. Treasury constant maturity rates for the period equal to the expected life. The Company does not
currently pay cash dividends on common stock and does not anticipate doing so in the foreseeable future. Accordingly, the
expected dividend yield is zero.
Foreign currencies
The financial statements are presented in Euros, the functional currency of voxeljet AG.
Monetary transactions denominated in foreign currencies are translated to Euros at the exchange rates prevailing on the
transaction date. Gains and losses on foreign currency transactions are shown within other operating income and other operating
expenses, respectively, in the consolidated statement of comprehensive loss.
The financial statements of foreign subsidiaries are translated using the concept of the functional currency in accordance
with IAS 21. The assets and liabilities of foreign subsidiaries are translated at the spot rate at the end of the period, while their
income statement items are translated at average exchange rates for the respective periods. All resulting exchange differences are
recognized in other comprehensive income. Gains and losses on foreign currency transactions are shown within other operating
income and other operating expenses, respectively, in the consolidated statement of comprehensive loss.
The loans provided to voxeljet AG’s subsidiaries are not considered as net investments in foreign operations. Therefore,
gains or losses from foreign exchange differences thereon are recognized in the statement of comprehensive loss as “other
operating income or expenses”.
The exchange rates that are most relevant for voxeljet’s consolidated financial statements are as follows:
Average exchange rates to Euro
December 31,
2020
2019
2018
Average Rate
USD
GBP
INR
CNY
1.1422
1.1195
1.1810
0.8897
0.8778
0.8847
84.6392
78.8361
80.7332
7.8747
7.7355
7.8081
Year end exchange rates to Euro
December 31,
2020
2019
Income Tax
Year End Rate
USD
GBP
INR
CNY
1.2271
1.1234
0.8990
0.8508
89.6605
80.1870
8.0225
7.8205
Income tax expense (benefit) consists of current and deferred tax expense and benefit in accordance with IAS 12.
Current income tax expense (benefit) is based on taxable profit (loss) for the year. Taxable profit (loss) differs from
profit (loss) as reported in the statements of comprehensive income (loss) because it excludes items of income or expense that are
taxable or deductible in other years and further excludes items that are never taxable or deductible.
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Current income tax expense (benefit) is calculated using tax rates that have been enacted or substantively enacted by the end of
the respective reporting period.
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of the current tax payable or receivable is the
best estimate of the tax amount to be paid or received that reflects uncertainty related to income tax, if any. It is measured using
tax rates enacted or substantively enacted at the reporting date.
Deferred income tax expense (benefit) is recognized on temporary differences between the carrying amounts of assets
and liabilities in the statement of financial position and the corresponding tax basis used in the computation of taxable profit
(loss).
Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets, including
for carry forward losses to the extent that it is probable that taxable profits will be available against which deductible temporary
differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer more probable than not that sufficient taxable profits will be available to allow all or a
part of the assets to be recovered.
Deferred tax expense (benefit) is calculated at the tax rates that are expected to apply in the periods when the liability is
settled or the asset is realized, based on tax rates (and tax regulations) that have been enacted or substantively enacted by the end
of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its
assets and liabilities. Deferred tax expense (benefit) is charged or credited to profit or loss, except when it relates to items
charged or credited directly to equity, in which case the deferred taxation is also recorded to equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off tax assets against tax
liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current
tax assets and liabilities on a net basis.
Intangible Assets
Intangible assets, including software and licenses, that are acquired by the Company and have a finite useful life are
measured at cost less accumulated amortization and any impairment losses. Amortization for intangible assets with finite useful
lives is recognized on a straight-line basis over their useful lives.
The amortization of licenses is allocated to the cost of inventory and is included in cost of sales as 3D printers are sold;
the amortization of software is mainly included in selling and administrative expenses.
The estimated useful economic lives of acquired intangible assets are presented in the following table:
USEFUL LIFE OF INTANGIBLE ASSETS
Software
Licenses
3-5 years
6-8 years
An intangible asset is derecognized upon disposal or when no future economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the item) is included in profit or loss in the period in which the item is
derecognized.
Property, Plant and Equipment
Property, plant and equipment is carried at acquisition or manufacturing cost (for internally manufactured printers used
in the Services segment or the research and development function) and depreciated on a straight-line basis over the estimated
useful lives of the related assets, taking into account estimated residual values. Except the sale of used printers, realized gains and
losses are recognized upon disposal or retirement of the related assets and are reflected
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within other operating income or other operating expenses in the consolidated statement of comprehensive loss. Subsequent
expenditures are capitalized only if it is probable that voxeljet will receive additional economic benefits from the particular asset
associated with these expenditures, and the costs can be determined reliably. In those cases the assets are depreciated over their
useful lives. Repair and maintenance expenditures are expensed as incurred. Land is not depreciated. Additions to property, plant
and equipment relating to self-constructed 3D printers are considered non-cash transactions.
The estimated useful economic lives of items of property, plant and equipment are as follows:
USEFUL LIFE OF PROPERTY, PLANT AND EQUIPMENT
Leasehold improvements
Buildings
Plant and machinery
Printers leased to customers under operating lease
Other facilities, machinery and factory equipment
Office equipment
6-9 years
33 years
7-8 years
7-8 years
2-20 years
3-12 years
Useful lives, depreciation methods and residual values are reviewed at least annually and, if they change significantly,
depreciation charges for current and future periods are adjusted accordingly.
Inventories
Raw materials and merchandise
Raw materials are measured at the lower of acquisition cost, as determined on the weighted average costs method, and
net realizable value. Obsolete inventories are written off directly into cost of sales.
Work in progress
Work in progress is measured at the lower of manufacturing cost and net realizable value. Manufacturing costs comprise
all costs that are directly attributable to the manufacturing process, such as direct material and labor, and production related
overheads (based on normal operating capacity and normal consumption of material, labor and other production costs), including
depreciation charges. Net realizable value is defined as the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs of the sale. For purposes of determining net realizable value, selling
expenses include all costs expected to be incurred to make the sale, primarily shipping, packaging and handling as well as
commissions.
We also use our own printers in our service centers. Unfinished printers are generally available to be sold if a customer
requests a product with a specification which can be met by one of the products in progress. Accordingly, we classify printers as
inventory until we remove a finished printer from our manufacturing warehouse to use it in a service center. The reclassification
as property, plant and equipment, as a non-cash transaction, occurs at cost and depreciation starts at inception of service.
We evaluate the adequacy of our inventory reserves on a periodic basis in order to determine the need for an inventory
reserve.
Impairment of non-financial assets
The Company continuously assesses or if there is a triggering event like the COVID-19 situation whether there is an
indication that a non-financial asset may be impaired. Such assets are tested for impairment if there are indicators that the
carrying amounts may not be recoverable. An impairment loss is recognized in the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is defined as the higher of an asset’s fair value less cost to sell and its
value in use. As individual assets do not generate largely independent cash flows, impairment testing is performed at the cash
generating unit level. An individual fixed asset within a CGU cannot be written down below fair value less cost incurred to sell
the individual asset.
F-25
Table of Contents
Earnings (loss) per share
Basic earnings per share amounts are calculated by dividing profit (loss) by the weighted average number of ordinary
shares outstanding. There are no dilutive instruments issued and outstanding.
Weighted-average number of ordinary shares at 31 December
4. New standards and interpretations not yet adopted
2020
2019
(in thousands of shares)
4,836
4,836
The IASB issued a number of new IFRS standards or amendments to existing standards which are required to be
adopted in annual periods beginning after December 31, 2020.
Standard
IFRS 17
IAS 1
Effective date
01/2021
01/2022
Insurance Contracts
Classifications of Liabilities as Current or Non-Current (Amendment to IAS 1)
Descriptions
The adoption of standards effective 01/2020 did not have a material impact on the financial statements as of and for the
year ended December 31, 2020. The Company has not yet conclusively determined what impact the new standards, amendments
or interpretations effective 01/2021 or later will have on its financial statements, but does not expect they will have a significant
impact.
5. Critical accounting judgment and key sources of estimation and uncertainty
In the process of applying the Company’s accounting policies, Management is required to make judgments, estimates
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These
estimates and associated assumptions are based on the knowledge available as of the preparation date of the financial statements
and historical experiences as well as other factors that are considered to be relevant. The estimates and underlying assumptions
are reviewed on an ongoing basis.
Developments outside management’s control may cause actual amounts to differ from the original estimates. In that
case, the underlying assumptions and, if necessary, the carrying amounts of the pertinent assets and liabilities are adjusted
accordingly. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects
only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
The assumptions and estimates refer primarily to the assessment of the Company of the ability to continue as a going
concern (see further discussion in Note 2), recognition of revenue, and the consideration of the renewal options of the lease
contracts in determining the appropriate lease terms.
The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting
period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next fiscal year are discussed below.
Revenue recognition
Revenue is measured based on the consideration specified in a contract with a customer. The Group recognizes revenue
when it transfers control over a good or service to a customer.
Revenue on the sale of new or refurbished 3D printers is recognized at the point in time after completed installation of
3D printers at the customer site and evidenced through final acceptance by the customer. Customers obtain control of the 3D
printers when the customers have accepted the assets.
The Company recognizes revenue on the maintenance contracts for 3D printers by applying the input method to
measure the progress that depicts the transfer of control of the goods or services to the customer toward complete satisfaction of a
performance obligation over time. The determination of the expected number of service visits and goods
F-26
Table of Contents
to be provided under a contract require significant judgment and have been estimated by the Company’s service department
based on historical experience.
Recognition of derivative financial instruments
As described in Notes 12 and 19 to the consolidated financial statements, the Company has recognized embedded
derivative financial assets amounting to kEUR 2,367 and embedded derivative financial liabilities amounting to kEUR 808
(collectively, the embedded derivative financial instruments), which are presented as current assets and liabilities, respectively.
The embedded derivative financial instruments, which are embedded in Tranche A and B1 of the loan granted in Euros by the
EIB, are required to be bifurcated and accounted for separate from the host contract because their value is dependent on the share
price of the Company, which is not clearly and closely related to the host contract. The embedded derivative financial instruments
are revalued at each balance sheet date, with changes in their fair value recorded within financial result of the consolidated
statements of comprehensive loss. The fair value of the embedded derivative financial instruments, which are not traded in an
active market, is determined by management using valuation techniques which are dependent on inputs such as share prices,
share volume, discount rates and foreign currency exchange rates. Finance income (Tranche A) and expense (Tranche B1)
resulting from the revaluations described above amounted to kEUR 93 and kEUR 808, respectively, for the year ended December
31, 2020.
Lease term as a lessee
The Company leases certain property leases which contain extension options exercisable by the Company after the end
of the non-cancellable contract period. The extension options held are exercisable only by the Company and not by the lessors.
The Company assesses at lease commencement date whether it is reasonably certain to exercise the extension options. The
Company reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in
circumstances within its control.
6. Share based payment arrangements
Share option plan
On April 7, 2017, voxeljet AG established a share option plan that entitles key management personnel and senior
employees of voxeljet AG and its subsidiaries to purchase shares of the parent company.
Total options available under the share option plan are 372,000. 279,000 options (75%, Tranche 1) were granted on
April 7, 2017. 93,000 options (25%, Tranche 2) were granted on April 12, 2018.
The vesting conditions include a service condition (the options vest after a period of four years of continued service
from the respective grant date) and a market condition (the options may only be exercised if the share price exceeds the exercise
price over a period of 90 consecutive days by at least 20% in the period between the grant date and the respective exercise time
frame) of which both conditions must be met.
The fair value of the employee share option plan has been measured for Tranches 1 and 2 using a Monte Carlo
simulation. The market condition has been incorporated into the fair value at grant date.
The inputs used in the measurement of the fair value at grant date are as follows:
Parameter
Share price at grant date
Exercise price
Expected volatility
Expected dividends
Risk-free interest rate
Fair value at grant date
Tranche 1
USD 13.80
USD 13.90
55.00%
--
2.49%
USD 8.00
Tranche 2
USD 16.15
USD 16.15
58.40%
--
2.85%
USD 9.74
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Table of Contents
Outstanding at January 1
Granted during the year
Exercised during the year
Forfeited during the year
Outstanding at December 31
Exercisable at December 31
December 31,
2020
2019
Number of options
Weighted-average
exercise price
(USD)
Number of options
Weighted-average
exercise price (USD)
353,400
--
--
--
353,400
--
14.46
--
--
--
14.46
--
353,400
--
--
--
353,400
--
14.46
--
--
--
14.46
--
The respective expected volatility has been based on an evaluation of the historical volatility of the Company’s share
price as at the grant date. As at December 31, 2020 no options are exercisable and 353,400 options are outstanding. The
weighted-average contractual life of the options at December 31, 2020 amounts to 6.5 years (December 31, 2019: 7.5 years).
The expense recognized in the statement of comprehensive loss totaled kEUR 671, kEUR 671 and kEUR 604 for
the years ended December 31, 2020, 2019 and 2018, respectively.
Increase of minority shareholding of voxeljet China
Set out below is summarized financial information for the subsidiary that has non-controlling interests that are material
to the Group. The amounts disclosed for the subsidiary are based on IFRS and before inter-company eliminations.
voxeljet China Co. Ltd.
Summarized balance sheet
Current assets
Current liabilities
Current net liabilities
Non-current assets
Non-current liabilities
Non-current net assets
Net liabilities
Accumulated NCI
voxeljet China Co. Ltd.
Summarized statement of comprehensive income
Revenue
Loss for the period
Other comprehensive income
Total comprehensive loss
Loss allocated to NCI
F-28
December 31,
2020
(€ in thousands)
Year Ended December 31,
2020
(€ in thousands)
2,603
4,351
1,748
1,831
852
979
769
(155)
2,179
(473)
--
(473)
(142)
Table of Contents
voxeljet China Co. Ltd.
Summarized cash flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase/ (decrease) in cash and cash equivalents
Year Ended December 31,
2020
(€ in thousands)
(1,504)
(39)
963
(580)
On March 1, 2019, voxeljet China moved into a new facility. The minority shareholder of voxeljet China has increased
its shareholding in the entity from 4.175% to 30% through an in-kind capital contribution of a lease contract on the new facility.
The lease term under IFRS 16 of the contract is six years, including a rent-free period during the first three years. The transaction
is accounted for as a share-based payment transaction under IFRS 2 and resulted in an increase of non-controlling interest of
kEUR 216 and capital reserves of kEUR 604. The Company also recorded a right-of-use asset of kEUR 813 and the
corresponding lease liability on the commencement date of the lease. The fair value of the lease contract was measured based on
the market observable lease payment of comparable properties in close proximity from the voxeljet China facility.
The Company has not disclosed prior period information, as management considers it as not material.
7. Trade receivables
Credit terms provided to customers are determined individually and are dependent on already existing customer
relationships and the customer’s payment history.
Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair
value.
Impairment
Balance at beginning of period
Provisions
Write-offs
Release to income
Balance at end of period
Year Ended December 31,
2020
2019
(€ in thousands)
187
52
(26)
(30)
183
383
38
(102)
(132)
187
Release to income includes changes in expected loss allowance which amounted to a gain of kEUR 23 for the business
year 2020, and were recorded in other operating income in the Company’s consolidated statements of comprehensive loss.
8. Inventories
Inventories consisted of the following for the years reported:
INVENTORIES BY CATEGORY
Raw materials
Work in progress
Total
F-29
December 31,
2020
2019
(€ in thousands)
3,733
7,661
11,394
4,109
8,350
12,459
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The reserve for slow-moving inventory regarding work in progress was kEUR 0 and kEUR 1 in 2020 and 2019,
respectively.
9. Restructuring
voxeljet AG
At the end of 2019, a provision of kEUR 453 was made to cover the costs associated with a restructuring program
announced by Management in November 2019 for the German operation. This program included the reduction of headcount
mainly in production in order to adjust the capacity but also in further functions. Estimated restructuring costs mainly include
employee termination benefits based on a voluntary program which has started on February 17, 2020. This program has been
agreed with the workers’ council in a company agreement. On April 16, 2020, the voluntary program expired with the result that
the desired reduction in headcount has been completely achieved through the voluntary program, and therefore the cost saving
targets have been fully implemented. The provision for the restructuring has been completely used within 2020.
Line items in statement of comprehensive loss / Components of
restructuring charges
Twelve months ended December 31, 2019
(€ in thousands)
Cost of sales
Employee termination costs
Selling expenses
Employee termination costs
Administrative expenses
Employee termination costs
Research and development expenses
Employee termination costs
Impact of restructuring
F-30
302
302
77
77
45
45
29
29
453
Table of Contents
voxeljet UK
In 2019, the Company decided to consolidate 3D printing to serve all customers in Europe from the German service
center and restructure the voxeljet UK entity. The restructuring included reduction in headcount and disposal of certain assets.
Consequently the lease of the Milton Keynes facility has been early-terminated and ended at the end of May 2020.
Line items in statement of comprehensive loss / Components of
restructuring charges
Twelve months ended December 31, 2019
(€ in thousands)
Cost of sales
Loss on disposal of assets
Employee termination costs
Impairment of Inventories
Selling expenses
Loss on disposal of assets
Employee termination costs
Write-off right-of-use asset
Administrative expenses
Loss on disposal of assets
Employee termination costs
Lease maintenance costs
Settlement of agreements
Legal Consulting
Write-off right-of-use asset
Impact of restructuring
312
226
67
19
42
20
16
6
274
81
35
100
14
25
19
628
After the restructuring launched in 2019, management initiated in December 2020 the liquidation process of voxeljet
UK. Following cost-benefit considerations and taking into account the subsidiary's main purpose -particularly attracting
customers attention to voxeljet’s products- management came to the conclusion, that it is not necessary to maintain a legal entity
in the UK. The remaining employees, solely sales representatives, have been transferred to voxeljet AG and will continue to
focus on selling 3D printed parts and 3D printers in the United Kingdom and Northern Europe. The wind-up will help to reduce
overall costs, especially within the function administration, but not at all adversely affect the activities of the UK colleagues.
10. Intangible assets and property, plant and equipment
Intangible assets
Software
Licenses
Prepayments made on intangible assets
Total
December 31,
2020
2019
(€ in thousands)
806
56
281
1,143
611
83
662
1,356
In 2020, prepayments amounting to kEUR 454 related to capitalized customizing cost in connection with our ERP
system have been transferred to software as the project has been completed. The decrease related to software is related to the
scheduled amortization partially offset by additions.
F-31
Table of Contents
Property, plant and equipment
Land, buildings and leasehold improvements
Plant and machinery
Other facilities, factory and office equipment
Assets under construction and prepayments made
Total
Thereof pledged assets of Property, Plant and Equipment
December 31,
2020
2019
(€ in thousands)
18,698
3,982
1,039
55
23,774
13,069
20,045
5,779
1,459
60
27,343
6,618
The pledged assets consist of the new office building and the new production hall, which were completed in 2017, as
well as seven (in 2019: eight) 3D printers that serve as collateral for certain credit lines and loan agreements. In March 2020,
voxeljet pledged land and facilities located in Friedberg, Germany in favor of the EIB.
Amounts added to plant and machinery relating to self-constructed 3D printers are considered non-cash transactions,
which totaled to kEUR 516 and kEUR 883 in the years ended December 31, 2020 and 2019, respectively.
The following table presents the composition of, and annual movement in, intangible assets and property, plant and
equipment for the years 2020 and 2019, respectively:
2020
Intangible assets
Software
Licenses
Prepayments made on
intangible assets
Total
Property, plant and
equipment
Land, buildings and leasehold
improvements
Plant and machinery
Other facilities, factory and
office equipment
Assets under construction and
prepayments made
Total
2019
Acquisition and manufacturing cost
Accumulated depreciation and amortization
01/01/2020
Additions
Disposals Transfer
FX
12/31/2020
01/01/2020 Current year Disposals
FX
12/31/2020
(€ in thousands)
1,551
245
662
2,458
22,885
14,032
4,142
60
41,119
--
69
--
89
158
13
752
189
954
26
--
16
42
454
--
(454)
0
65
4,595 --
314
--
4,974
--
--
--
0
(2)
--
--
(2)
(370)
(529)
(41)
(5)
(945)
2,046
245
281
2,572
22,463
9,660
3,976
55
36,154
940
162
--
1,102
2,840
8,253
2,683
--
13,776
327
27
--
354
1,001
1,551
536
--
3,088
26 (1)
--
--
26
2
3,921
257
--
4,180
--
--
(1)
(74)
(205)
(25)
--
(304)
1,240
189
--
1,429
3,765
5,678
2,937
--
12,380
Acquisition and manufacturing cost
Accumulated depreciation and amortization
(€ in thousands)
Carrying
amount
12/31/2020
806
56
281
1,143
18,698
3,982
1,039
55
23,774
Carrying
amount
Recognition of
right-of-use
asset on
initial
application of
IFRS 16
01/01/2019 (1)
Adjusted
balance at
Current
01/01/2019 Additions Disposals Revaluation Transfer FX 12/31/2019 01/01/2019 year
Disposals Transfer FX 12/31/2019 12/31/2019
1,446
245
524
2,215
18,909
19,211
--
--
--
--
1,446
245
524
2,215
94
--
148
242
--
--
--
--
--
--
--
--
10
--
(10)
--
1
--
--
1
1,551
245
662
2,458
659
136
--
795
280
26
--
306
--
--
--
--
--
--
--
--
1
--
--
1
940
162
--
1,102
611
83
662
1,356
3,109
22,018
1,651
369
(534)
--
119
22,885
1,824
1,095
83
--
4
2,840
20,045
112
19,323
1,194
6,769
(1)
40
245
14,032
10,164
2,198
4,162
13
40
8,253
5,779
3,801
280
4,081
449
411
(1)
--
24
4,142
2,423
608
356
--
8
2,683
1,459
16
41,937
203
42,140
--
3,501
--
3,501
16
45,438
203
45,641
59
3,353
--
3,353
16
7,565
41
7,606
--
(536)
--
(536)
--
40
(163)
(123)
F-32
1
389
1
390
60
41,119
--
41,119
--
14,411
54
14,465
--
3,901
4
3,905
--
4,601
18
4,619
--
13
(40)
(27)
--
51
--
51
--
13,776
--
13,776
60
27,343
--
27,343
Intangible assets
Software
Licenses
Prepayments made
on intangible assets
Total
Property, plant
and equipment
Land, buildings and
leasehold
improvements
Plant and
machinery
Other facilities,
factory and office
equipment
Assets under
construction and
prepayments made
Subtotal
Leased products
Total
Table of Contents
(1) The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further information, see Note 3 “Summary of significant accounting
policies” to the consolidated financial statements.
11. Other liabilities and provisions
Employee bonus
Liabilities from payroll
Accruals for commissions
Accrual for warranty
Accruals for compensation of supervisory board
Accruals for vacation and overtime
Accruals for licenses
Liabilities from VAT
Accrual for restructuring
Others
Total
December 31,
2020
2019
(€ in thousands)
334
237
236
228
180
124
68
27
--
149
1,583
397
301
38
241
180
190
62
32
604
284
2,329
As of December 31, 2020, other liabilities and provisions include kEUR 5 as non-current related to the line item others.
The accruals for restructuring as of December 31, 2019 amounting to kEUR 604 related to voxeljet AG (kEUR 453) and
voxeljet UK (kEUR 151). For further information, see Note 9 of the consolidated financial statements.
January 1,
2020
(€ in thousands)
Usage
Addition
Reversal
December 31,
2020
Employee bonus
Liabilities from payroll
Accruals for commissions
Accrual for warranty
Accruals for compensation of supervisory board
Accruals for vacation and overtime
Accruals for licenses
Accruals for education and training
Accrual for restructuring
Total
397
301
38
241
180
190
62
--
604
2,013
(397)
(301)
(38)
(241)
(180)
(190)
(62)
--
(604)
(2,013)
334
237
236
228
180
124
68
41
--
1,448
--
--
--
--
--
--
--
--
--
--
334
237
236
228
180
124
68
41
--
1,448
The Group expects to settle the majority of the other liabilities and provisions over the next year.
12. Additional disclosures to financial instruments
Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The Group uses the following hierarchy for determining the fair
value of financial instruments:
●
●
Level 1: Quoted prices of the respective financial asset or financial liability in active markets
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
●
Level 3: Input parameters not based on observable market data
Further, for the current year the fair value disclosure of lease liabilities is not required.
F-33
Table of Contents
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including
their levels in the fair value hierarchy.
12/31/2020
FVTPL FVOCI
Carrying amount
Assets at
amortized
cost
Liabilities
at amortized
cost
Total
carrying
amount
Fair Value
Level 1 Level 2 Level 3 Total
Total assets
Current assets
Cash and cash
equivalents
Financial assets
Bond funds
Bond funds (restricted)
Derivative financial
instruments
Trade receivables, net
Non-current assets
Financial assets
Equity securities
Total liabilities
Current liabilities
Trade payables
Financial liabilities
Derivative financial
instruments
Long-term debt
Lease liability
Non-current liabilities
Financial liabilities
Long-term debt
Lease liability
5,351
5,351
--
5,351
984
2,000
2,367
--
--
--
--
808
808
--
808
808
--
--
--
--
--
--
5
--
--
--
--
--
--
--
5
5
5
--
--
--
--
--
--
--
--
--
--
--
20,008
10,004
5,324
--
--
--
--
4,680
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
25,108
20,606
1,956
18,650
--
18,650
--
4,502
4,502
4,502
--
F-34
15,360
15,355
5,324
5,351
984
2,000
2,367
4,680
5
5
5
29,040
21,726
1,956
19,770
808
18,650
312
7,314
7,314
4,502
2,812
2,984
984
2,000
2,367
--
--
--
2,367
--
--
--
--
--
--
5
5
5,351
984
2,000
2,367
5
5
--
--
--
--
--
--
--
--
--
808
808
--
--
24,858
25,666
--
24,858
--
808
24,858
n/a
--
--
--
4,203
4,203
--
4,203
4,203
n/a
Table of Contents
12/31/2019
cost
cost
amount Level 1 Level 2 Level 3 Total
Carrying amount
Assets at
Liabilities
Total
Fair Value
FVTPL FVOCI amortized at amortized carrying
Financial assets measured at fair value
Current assets
Bond funds (1)
Bond funds (restricted) (1)
Note receivable (1)
Non-current assets
Derivative financial instruments (2)
Equity securities
Financial assets not measured at fair value
Current assets
Cash and cash equivalents
Restricted Cash
Trade and other receivables
Financial liabilities not measured at fair value
Current liabilities
Long-term debt (3)
Trade payables
Non-current liabilities
Long-term debt (3)
3,667
2,000
1,278
2,274
--
--
--
--
--
--
--
--
--
--
--
5
--
--
--
--
--
--
--
--
--
--
--
4,368
463
5,915
--
--
--
3,667
2,000
1,278
3,667
2,000
1,278
--
--
--
--
--
--
--
--
2,274
5
--
--
2,274
--
4,368
4,368
463
5,915
463
--
--
--
--
--
--
--
--
5
--
--
--
3,667
2,000
1,278
2,274
5
4,368
463
--
--
--
--
10,864
2,797
10,864
2,797
6,682
6,682
--
--
--
--
--
10,858
--
10,858
n/a
--
6,148
6,148
(1) Comparative figures for the year ended December 31, 2019, were revised related to the amendment of classification of short-
term investments. For further information, see Note 2 “Preparation of financial statements” to the consolidated financial
statements.
(2) Comparative figures for the year ended December 31, 2019, were revised related to the recalculation of the performance
participation interest related to the Finance Contract with the EIB. For further information, see Note 2 “Preparation of financial
statements” to the consolidated financial statements.
(3) Previously presented under level 2.
The financial assets with a carrying amount of kEUR 5,356 reported on the Company’s statement of financial position at
December 31, 2020 were comprised of investments in two bond funds (kEUR 2,984, thereof kEUR 2,000 restricted), a derivative
financial instrument (kEUR 2,367) all reported as current financial assets and equity securities (kEUR 5) reported as a non-
current asset.
The financial assets with a carrying amount of kEUR 9,687 reported on the Company’s statement of financial position at
December 31, 2019 were comprised of investments in four bond funds (kEUR 5,667, thereof kEUR 2,000 restricted), one note
receivable (kEUR 1,278) and restricted cash (kEUR 463), all reported as current financial assets, an equity forward (kEUR 2,274)
and equity securities (kEUR 5) reported as a non-current asset.
The valuation techniques used to value financial instruments include the use of quoted market prices or dealer quotes for
similar instruments as well as discounted cash flow analysis.
The fair value of the Company’s investments in the bond funds and note receivable was determined based on the quoted
unit prices received by the fund management company.
The fair value of the derivative financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
The fair values have been determined based on share prices and the discount rates used were adjusted for counterparty or own
credit risk.
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The fair value of long-term debt was determined using discounted cash flow models based on the relevant forward
interest rate yield curves, considering the credit risk of voxeljet.
Due to their short maturity and the current low level of interest rates, the carrying amounts of cash and cash equivalents,
restricted cash, trade receivables, trade payables, credit lines and bank overdrafts approximate fair value.
The group’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the
end of the reporting period.
In 2020, there were no transfers of financial instruments measured at fair value between level 1 and level 2.
The following table provides an overview of the gains and losses for financial assets and liabilities AC and FVTPL:
Year Ended December 31,
2020
(€ in thousands)
Financial asset measured at amortized cost
Total interest expense
Other operating income from change of impairment
Other operating income from unrealized foreign currency translation
Other operating expense from change of impairment
Other operating expense from unrealized foreign currency translation
Financial asset measured at fair value through profit or loss
Total interest income
Total interest expense
Other operating income from unrealized foreign currency translation
Other operating expense from unrealized foreign currency translation
Financial liabilties measured at amortized cost
Total interest expense
Other operating income from unrealized foreign currency translation
Other operating expense from unrealized foreign currency translation
Financial liabilties measured at fair value through profit or loss
Total interest expense
Total
The Company has not disclosed prior period information, as management considers it as not material.
F-36
(31)
(3)
182
50
(120)
(140)
94
171
(10)
32
(99)
(1,769)
(1,769)
3
(3)
(808)
(808)
(2,514)
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The following table provides an overview of all outstanding loans voxeljet entered into:
Currency
Nominal
interest
rate
Year of
maturity
December 31, 2020
December 31, 2019
Face value Carrying amount
Face value Carrying amount
(€ in thousands)
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
USD
EUR
EUR
3.27%
2.29%
2.35%
2.47%
2.72%
2.42%
2.73%
1.75%
2.48%
2.49%
3.92%
2.90%
0.00%
12.00%
EUR 1.6%-9.3%
2020
2021
2021
2038
2038
2038
2037
2040
2022
2024
2025
2022
2022
2025
2020-
2029
800
700
1,000
2,000
1,000
500
500
1,000
675
500
29
40
10,000
5,000
3,592
27,336
--
110
70
1,695
848
429
472
887
238
332
24
10
12,549
5,478
3,124
26,266
800
700
1,000
2,000
1,000
500
500
1,000
675
500
29
40
10,000
--
3,988
22,732
73
254
278
1,774
887
448
446
899
376
429
24
17
11,641
--
3,610
21,156
Secured bank loan
Secured bank loan
Secured bank loan
Secured bank loan
Secured bank loan
Secured bank loan
Secured bank loan
Secured bank loan
Secured bank loan
Secured bank loan
Unsecured bank loan
Unsecured bank loan
Secured bank loan
Secured bank loan
Lease liabilities
Total interest-bearing liabilities
The secured bank loans are secured over land and buildings, machinery and equipment and pledged bond funds with a
carrying amount of kEUR 15,000 (2019: kEUR 5,000), kEUR 1,104 (2019: kEUR 1,618) and kEUR 2,000 (2019: kEUR 2,000),
respectively.
In 2016, voxeljet concluded new loan agreements with Kreissparkasse Augsburg, Germany, to finance the construction
of new office and production facilities in Friedberg: (i) in February 2016, the Company entered into a € 2.0 million loan
agreement due May 31, 2038. Interest is payable at a fixed rate of 2.47%; (ii) in February 2016, the Company entered into a
€ 1.0 million loan agreement due April 30, 2038. Interest is payable at a fixed rate of 2.72%; (iii) in February 2016, the Company
entered into a € 1.0 million loan agreement due April 30, 2040. Interest is payable at a variable rate of 1.75%; (iv) In December
2016, the Company entered into a € 0.5 million loan agreement due July 30, 2038. Interest is payable at a fixed rate of 2.42%;
and (v) in December 2016, the Company entered into a € 0.5 million loan agreement due September 30, 2037. Interest is payable
at a fixed rate of 2.73%. Among other terms, the loan agreements contain (i) certain covenants, including that voxeljet deposit
€ 2.0 million with Kreissparkasse Augsburg until it has reached a certain ratio with respect to its ability to service the debt by the
end of fiscal year 2019, and (ii) change of control provisions concerning the ownership of the Company by its executive officers,
Dr. Ingo Ederer and Rudolf Franz. As of December 31, 2019, voxeljet was in non-compliance with that ratio and therefore
pledged € 2.0 million of bond funds for the benefit of the lender. In addition, the land owned by voxeljet upon which the facilities
will be built as well as three 3D printers will serve as collateral under the loan agreements.
In April 2019, voxeljet entered into a loan agreement with Kreissparkasse Augsburg, Germany, to finance self-
manufactured 3D printers which are operated in the German service center amounting to kEUR 500. The maturity date is five
years after draw down and the drawn down occurred at the end of April 2019. The fixed interest rate amounts to 2.49%. voxeljet
pledged two 3D printers from property plant and equipment as collateral.
On November 9, 2017, the EIB and the Company entered into the Finance Contract and a Synthetic Warrant Agreement
(the “Synthetic Warrant Agreement”) to support the Company’s undertaking of research and development projects for growth
from 2017 to 2020 and beyond. The contract provides a credit of up to € 25 million in three tranches of € 10 million, € 8 million,
and € 7 million.
Under the Finance Contract, the Company may borrow under the credit up to € 25 million, subject to a limit of 50% of
the total research and development expenditures and manufacturing capital expenditures from 2017 to 2020 and beyond. The
interest rates for the three tranches are 0%, 7% and 3%, respectively. The Company may borrow the second and third tranche
only if certain revenue and EBITDA levels are met. The Finance Contract also includes a financial
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covenant that requires the Company to meet certain minimum financial ratios from 2019 to 2025. Under a First Demand
Guarantee Agreement the Finance Contract is guaranteed by the voxeljet USA subsidiary.
At the time the first tranche of € 10 million was received on December 22, 2017, the EIB under the Synthetic Warrant
Agreement was entitled to receive as consideration cash equal to the market value of 195,790 ordinary shares of the Company (or
equivalent number of ADS of the Company) at the maturity date (5 years after draw down), after the occurrence of a trigger
event, or on the expiration date (10 years after draw down). Under the anti-dilution protection clause of the agreement the number
of ordinary shares under the Synthetic Warrant Agreement was increased to 254,527 as a result of the capital increase effective
October 17, 2018 and November 1, 2018.
The Company has breached its Total Net Financial Debt to EBITDA ratio financial covenant and was in non-
compliance with the letters of credit limit under the Finance Contract with the EIB as of December 31, 2019, under which the
Company has to comply with certain minimum thresholds. As a result of the breach, the Company reclassified the face value of
the loan of kEUR 10,000 from a non-current liability to a current liability as of December 31, 2019. After negotiations with the
EIB, which started in July 2019, in March 2020, voxeljet received a waiver for the covenant breach in 2019 and also a grace
period until March 31, 2021, within which voxeljet could rectify the breach and during which the EIB could not demand
immediate repayment. In return, the Company registered a first rank land charge amounting to kEUR 10,000 on its land and
facility located in Friedberg, Germany as collateral in favor of the EIB in March 2020. In June 2020, the Company announced
that the EIB and voxeljet further expanded their partnership. The EIB disbursed € 5.0 million of the second tranche (tranche B1)
of the loan in June 2020 with a bullet repayment after five years. In addition, the EIB and the Company amended the financial
covenants in the Finance Contract to replace the Total Net Financial Debt to EBITDA ratio with the Minimum Cash Covenant.
As of June 30, 2020, pursuant to the semi-annual financial testing prescribed by the Finance Contract, as amended, the Company
was in compliance with the Minimum Cash Covenant. However, in March 2021, the Company discovered that its calculation of
cash and cash equivalents for determining compliance with the Minimum Cash Covenant was incorrect and, accordingly, the
Company was not in compliance with the Minimum Cash Covenant as of December 31, 2020. Also in March 2021, the Company
received a waiver from the EIB for the noncompliance with the Minimum Cash Covenant, pursuant to which (i) the EIB agreed
that it will not demand immediate repayment of the outstanding amounts owed and (ii) the EIB and the Company amended the
financial covenants in the Finance Contract to clarify the calculation of cash and cash equivalents for determining compliance
with the Minimum Cash Covenant.
At the time tranche B1 of € 5 million was received in June 2020, the EIB under the Synthetic Warrant Agreement, as
last amended on May 29, 2020, was entitled to receive as consideration cash equal to the market value of 404,928 ordinary shares
of the Company (or equivalent number of ADS of the Company) at the maturity date (5 years after draw down), after the
occurrence of a trigger event, or on the expiration date (10 years after draw down of the first tranche). Related to tranche B1,
voxeljet and the EIB also agreed under the Finance Contract, last amended on May 29, 2020, a PIK interest (payment in kind
interest) rate of 5% in addition to a 7% fixed interest rate.
13. Cost of sales
Cost of sales includes personnel expenses, cost of material, purchased services, cost for finished goods and allocated
indirect costs related to production.
COST OF SALES
Personnel expenses
Material costs
Depreciation
Other expenses
Allowance for slow-moving inventory
Total
2020
Year Ended December 31,
2019
(€ in thousands)
2018 (1)
(4,594)
(6,559)
(2,158)
(1,502)
1
(14,812)
(5,583)
(6,796)
(2,686)
(2,382)
21
(17,426)
(5,404)
(7,082)
(2,197)
(2,598)
417
(16,864)
(1) The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is
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recognized in retained earnings at the date of initial application. For further information, see Note 3 “Summary of significant
accounting policies” to the consolidated financial statements.
In 2020, other expenses primarily consisted of expenses related to insurances (kEUR 283), cost of maintenance
(kEUR 208), travel expenses (kEUR 171), rental and building expenses (kEUR 104) and license fees (kEUR 53).
In 2019, other expenses primarily consisted of cost of maintenance (kEUR 535), travel expenses (kEUR 312), expenses
related to insurances (kEUR 269) rental and building expenses (kEUR 149) and license fees (kEUR 57).
In 2018, other expenses primarily consisted of rental and building expenses (kEUR 491), travel expenses (kEUR 294)
and license fees (kEUR 92).
14. Other operating income and expense
The details of other operating income and expenses are presented for the years reported in the tables below:
OTHER OPERATING INCOME
Government grant income
Amortization of gain on sale and leaseback transactions
Reimbursement of transaction costs
Gains from foreign exchange transactions
Other
Total
2020
Year Ended December 31,
2019
(€ in thousands)
2018
321
--
68
849
365
1,603
21
--
127
1,657
338
2,143
Other operating income includes an amount of kEUR 75 (2019: kEUR 132, 2018: kEUR 38) for the movement of
impairment on trade receivables.
OTHER OPERATING EXPENSE
Impairment loss on trade receivables
Losses from foreign exchange transactions
Impairment loss on inventory
Other
Total
15. Financial result
2020
Year Ended December 31,
2019
(€ in thousands)
2018
120
2,545
100
34
2,799
60
880
--
5
945
11
119
121
794
252
1,297
224
511
--
16
751
The details of financial result are presented for the years reported in the table below:
Interest expense
Interest expense on lease liability (2018: Finance lease obligations)
Long-term debt
Expense from revaluation of derivative financial instruments
Fair value valuation of financial assets
Other
Interest income
Payout of bond funds
Income from revaluation of derivative financial instruments
Fair value valuation of financial assets
Other
F-39
2020
Year Ended December 31,
2019 (1) (2)
(€ in thousands)
2018 (1) (2)
(2,589)
(167)
(1,602)
(808)
(10)
(2)
184
78
93
--
13
(1,349)
(190)
(993)
(106)
--
(60)
318
126
--
174
18
(1,279)
(69)
(944)
--
(136)
(130)
2,158
58
2,065
18
17
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Financial result
(2,405)
(1,031)
879
(1) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the amendment of
classification of short-term investments. For further information, see Note 2 “Preparation of financial statements” to the
consolidated financial statements.
(2) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the recalculation
of the performance participation interest related to the Finance Contract with the EIB. For further information, see Note 2
“Preparation of financial statements” to the consolidated financial statements.
16. Income taxes
Income taxes consist of the following for the years reported:
Income tax (expense) income
Current tax (expense) income
Deferred tax (expense) income
Total
2020
Year Ended December 31,
2019 (1) (2)
(€ in thousands)
2018 (1) (2)
--
88
88
--
(39)
(39)
--
(64)
(64)
(1) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the amendment of
classification of short-term investments. For further information, see Note 2 “Preparation of financial statements” to the
consolidated financial statements.
(2) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the recalculation
of the performance participation interest related to the Finance Contract with the EIB. For further information, see Note 2
“Preparation of financial statements” to the consolidated financial statements.
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Table of Contents
Deferred tax assets and liabilities
The components of net deferred income taxes at the end of the respective reporting periods were as follows:
SOURCES OF DEFERRED TAX ASSETS AND LIABILITIES
Trade receivables
Other receivables and current assets
Inventories
Property, Plant & Equipment
Trade liabilities
Current financial liabilities
Current financial assets
Other current liabilities and provisions
Contract liabilities
Non-current other assets
Non-current financial liabilities
Non-current financial assets
Intangible assets
Tax losses carried forward
Valuation allowance
Tax assets (liabilities)
Set off of tax
Net tax
2020
December 31,
(€ in thousands)
2019
Deferred tax assets
--
1,092
16
5
429
1,148
65
239
762
--
764
--
--
138
(248)
4,410
(4,410)
--
Deferred tax
liabilities
(8)
(92)
(291)
(559)
--
--
--
(2,053)
(762)
(28)
--
(663)
--
--
(6)
(4,462)
4,410
(52)
Deferred tax assets
--
1,050
11
99
206
1,020
--
19
247
--
--
--
227
(265)
2,615
(2,615)
--
Deferred tax
liabilities
(8)
(118)
--
(603)
--
(183)
(710)
(887)
(247)
--
--
(1)
--
--
(2,757)
2,615
(142)
At December 31, 2020 voxeljet had gross loss carry-forwards for corporation tax and trade tax losses of kEUR 49,698
and kEUR 48,630, respectively, for which no deferred taxes have been recognized. These tax losses can be carried forward
without restriction for future offset against taxable profits.
In addition, there are foreign tax loss carry-forwards from voxeljet Amercia amounting to kEUR 2,480, also without
restriction for future offset against taxable profits.
Foreign tax loss carry-forwards from voxeljet China and voxeljet India amounting to kEUR 3,126 and kEUR 326, which
can be carried forward for five and eight years, respectively for future offset against taxable profits.
Reconciliation of profit before income taxes to income tax
The reconciliation between profit before income taxes and income tax benefit (expense) for the reporting periods
presented was as follows:
RECONCILIATION OF INCOME TAX BENEFIT (EXPENSE)
Loss before tax
Tax expense at prevailing statutory rate (28%)
Non-deductible expenses
Non-taxable income
Tax-rate related differences
Unrecognized temporary differences and tax losses
Income tax (expense) income
F-41
Year Ended December 31,
2020
2019 (1) (2)
(€ in thousands)
2018 (1) (2) (3)
(15,569)
4,359
(732)
80
(69)
(3,550)
88
(13,939)
3,903
(447)
--
(198)
(3,297)
(39)
(8,683)
2,431
(196)
242
(128)
(2,413)
(64)
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(1) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the amendment of
classification of short-term investments. For further information, see Note 2 “Preparation of financial statements” to the
consolidated financial statements.
(2) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the recalculation
of the performance participation interest related to the Finance Contract with the EIB. For further information, see Note 2
“Preparation of financial statements” to the consolidated financial statements.
(3) The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further information, see Note 3 “Summary of significant accounting
policies” to the consolidated financial statements.
17. Personnel expenses
Personnel expenses included in cost of sales, research and development, and selling and administrative expenses are
comprised of the following:
PERSONNEL EXPENSES
Wages and salaries
Employee stock option plan
Social security contributions
Total
2020
Year Ended December 31,
2019
(€ in thousands)
2018
11,568
671
2,289
14,528
13,885
671
2,710
17,266
12,772
604
2,527
15,903
voxeljet AG offers to its employees a defined contribution plan called “MetallRente”. The contributions paid by the
Company amounted to kEUR 65, kEUR 66 and kEUR 61 for the years ended December 31, 2020, 2019 and 2018, respectively
and is presented within social security contributions. The employer’s contribution into the mandatory German state plan
amounted to kEUR 754, kEUR 889 and kEUR 849 for the years ended December 31, 2020, 2019, and 2018, respectively.
18. Segment reporting
voxeljet operates in two reportable segments—Systems and Services—which reflect the internal organizational and
management structure according to the distinct nature of the two businesses. The Systems business derives its revenues from the
manufacture and sale of 3D printers, from the sale of consumables, as well as from lease, maintenance and extended warranty
agreements with customers, while the Services business provides customized printed products to customers.
The Management Board of voxeljet is the chief operating decision maker. The chief operating decision maker mainly
monitors the Company’s revenues and gross profit, as the performance indicators.
The following table summarizes segment reporting for each of the reporting periods ended December 31. As
management’s controlling instruments are mainly revenue-based, the reporting information does not include a detailed
breakdown of all assets and liabilities by category. The sum of the amounts for the two segments equals the total for the
Company for each of the years presented.
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Table of Contents
SEGMENT REPORTING
Revenues
third party
intra-segment
Cost of sales
Gross profit
Gross profit in %
Operating Expenses
Other operating expenses
Other operating income
Operating loss
Finance expense
Finance income
Financial result
Loss before income taxes
Income tax income (expense)
Net loss
Revenues
Gross profit
Gross profit in %
PPE
Year Ended December 31,
2020
(€ in thousands)
SYSTEMS
SERVICES
CONSO
LIDATION
GROUP
13,159
12,556
603
(8,115)
4,441
35.4%
9,011
9,011
—
(6,697)
2,314
25.7%
(603)
—
(603)
21,567
21,567
—
(14,812)
6,755
31.3%
(18,723)
(2,799)
1,603
(13,164)
(2,589)
184
(2,405)
(15,569)
88
(15,481)
Year Ended December 31,
2019
2018 (1)
(€ in thousands)
SYSTEMS
SERVICES
SYSTEMS
SERVICES
13,454
4,284
31.8%
13,093
11,148
2,892
25.9%
14,250
12,248
3,708
30.3%
11,804
13,761
5,437
39.5%
15,871
(1) The Company has initially applied IFRS 16 as of January 1, 2019, using the modified retrospective approach. Under this
approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in
retained earnings at the date of initial application. For further information, see Note 3 “Summary of significant accounting
policies” to the consolidated financial statements.
Systems revenues include revenues from the sales of used 3D printers of kEUR 2,328, kEUR 2,007, and kEUR 1,489
for the years ended December 31, 2020, 2019, and 2018, respectively.
Geographic information
REVENUES BY GEOGRAPHICAL REGION
voxeljet’s revenues and non-current assets are presented below by geographic region. For purposes of this presentation,
revenues are based on the geographic location of customers and assets are based on their geographic location.
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voxeljet’s revenues were generated in the following geographical regions for the years reported:
EMEA
Germany
France
Great Britain
Others
Asia Pacific
South Korea
China
Indonesia
Others
Americas
United States
Others
Total
2020
Year Ended December 31,
2019
(€ in thousands)
2018
11,466
4,647
841
963
5,015
4,521
1,787
1,101
93
1,540
5,580
5,453
127
21,567
11,265
4,474
1,314
1,224
4,253
6,302
1,242
3,993
55
1,012
7,035
6,843
192
24,602
14,673
6,605
2,667
1,050
4,351
5,450
888
2,134
1,819
609
5,886
5,802
84
26,009
Revenues generated in the region Asia Pacific included kEUR 1,406 related to Japan for the business year 2020,
presented in others. Revenues generated in the region EMEA included kEUR 1,322 related to Russia for the business year 2020,
presented in others.
NON-CURRENT ASSETS BY GEOGRAPHICAL REGION
EMEA
Germany
Great Britain
Asia Pacific
Americas
United States
Total
December 31,
2020
2019 (1) (2)
(€ in thousands)
19,730
19,730
--
1,609
3,751
3,751
25,090
23,211
23,208
3
2,095
5,746
5,746
31,052
(1) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the amendment of
classification of short-term investments. For further information, see Note 2 “Preparation of financial statements” to the
consolidated financial statements.
(2) Comparative figures for the year ended December 31, 2019 and December 31, 2018 were revised related to the recalculation
of the performance participation interest related to the Finance Contract with the EIB. For further information, see Note 2
“Preparation of financial statements” to the consolidated financial statements.
19. Financial risk management
The Company’s Management Board is responsible for implementing the finance policy and for ongoing financial risk
management. Therefore the Management Board has established a Risk Management Committee, which is responsible for
developing and monitoring of the Group’s risk management policies, especially regarding financial risks. Generally the
committee provides an overview of financial risks on a quarterly basis to the Management Board as part of the Company’s
quarterly management reporting procedures.
The Company’s principal financial instruments are comprised of short-term bank deposits at commercial institutions,
bond funds, lease obligations and long-term debt. The main purpose of the financial asset instruments is to provide a return on
investments with minimal risk. The Company has other financial assets and liabilities including trade receivables and trade
payables, which arise directly from its operations.
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The main purpose of the financial liability instruments is to fund the Company’s operations and research and
development activities. Portions of the long-term debt include two embedded derivative financial instruments, one recorded as a
financial assets one recorded as a financial liabilities, related to a future interest payment which are linked to the Company’s
stock price (Performance Participation Interest).
The main risks arising from the Group’s financial instruments are liquidity risk, foreign exchange risk, credit risk,
interest rate risk and equity price risks. The measures taken by Management to manage each of these risks are summarized below.
Material transactions related to activities in the area of financial instruments like entering into loan agreements or
investments in bond funds require the prior approval of the Chief Financial Officer. The Company did not enter into any
derivative financial instruments for hedging purposes in 2020.
Management receives a weekly reporting of the current liquidity of the Group by entity. Furthermore, a monthly cash
flow plan meeting has been established, where Management reviews the cash forecasts and the future development of flows of
funds on an ongoing basis.
Foreign exchange risk
The Company is exposed to foreign exchange risk to the extent that there is a difference between the currencies in which
sales, purchases and borrowings are denominated and the respective functional currencies of subsidiaries of the Group. The
functional currencies of the parent company voxeljet AG and its subsidiaries are the Euro, U.S. Dollar, British Pound Sterling,
Indian rupee and Chinese yuan renminbi. The majority of the sale, purchase and borrowing transactions are denominated in the
functional currency of the parent company or its subsidiaries. The Company’s most significant foreign exchange risk relates to
intercompany loans made to subsidiaries, as described below.
The Company invoiced 68% in 2020, 62% in 2019 and 70% in 2018 of total revenues in Euro. As revenues in foreign
currency usually correspond to costs which are incurred in the same currency, we consider the risk as minor.
voxeljet has provided intercompany loans to its subsidiaries to finance their operations. The loans were granted in the
local currency of the subsidiaries. Gains and losses from movements in exchange rates are recorded within other operating
income or expense in the consolidated statement of comprehensive loss. 2020 the amount loaned to voxeljet UK by voxeljet AG
totaled GBP 7.9 million (€ 8.7 million). A relative increase/decrease in the value of the Euro against the British Pound Sterling of
10% would lead to a loss of € 0.8 million/gain of € 1.0 million. As of December 31, 2019 the amount loaned to voxeljet UK by
voxeljet AG totaled GBP 7.8 million (€ 9.1 million). A relative increase in the value of the Euro against the British Pound
Sterling of 10% would have led to a loss of € 0.8 million. The amount loaned to voxeljet America totaled to USD 9.0 million
(€ 7.4 million) as of December 31, 2020. An increase/decrease in the value of the Euro against the U.S. Dollar of 10% would lead
to a loss of € 0.7 million/gain of € 0.8 million. As of December 31, 2019 the amount loaned to voxeljet America totaled to
USD 5.6 million (€ 5.0 million). An increase in the value of the Euro against the U.S. Dollar of 10% would have led to a loss of
€ 0.5 million.
For the year ended December 31, 2020, voxeljet generated 31.7% of its revenues in the eurozone. Additionally, the
majority of the Company’s sourcing transactions are also transacted in Euros in that zone.
The significant exchange rates which have been applied during the years presented are disclosed in Note 3.
Interest rate risk
voxeljet’s principal interest-bearing positions are liabilities for bank borrowings and lease liabilities. These liabilities are
entirely at a fixed interest rate, with one exception. As such, changes in market interest rates have no material effect on future
interest expenses. A change of 10 base points in interest rates would increase or decrease interest expense by less than kEUR 2.
In connection with the first tranche amounting to € 10.0 million and the first portion of the second tranche (tranche B1)
amounting to € 5.0 million, both related to the loan received by the EIB, the Company issued in each case a warrant, Performance
Participation Interest (PPI), accounted for separately as derivative financial instruments from the host contract (loan financial
liability), with changes in fair value reported in the consolidated statements of
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comprehensive loss until the derivative financial instruments settle or expire. Both portions of the loan are accounted for
according to the effective interest method. The effective interest rate of the first tranche is 7.58% and of the first portion of the
second tranche is 17.57%. In each case, the effective interest rates were imputed after bifurcation of each embedded derivative
financial instrument on the date of the loan disbursement. Changes in the market interest rate will not affect the loan accounting.
However, the derivative instruments are affected by changes in the risk-free rate. Increases in the risk-free rate will lead to a
decrease of the fair value of the derivative instruments; decreases in the risk-free rate will lead to an increase in the fair value of
the derivative instruments.
Equity price risk
The Company is also exposed to equity price risks which arise from embedded derivative financial instruments (PPI)
bifurcated from the loans received by the EIB as mentioned above, which depend upon the Company’s share price. Changes in
the Company’s share price will affect the value of the equity forward derivative instruments (increasing share prices as compared
to the share price at disbursement date will lead to a negative fair value of the derivatives, decreasing share prices will lead to a
positive fair value of the derivatives). An increase/decrease of the price per share by USD 1.00 leads to a decrease/increase of the
derivative asset (Tranche A) by approximately kEUR 207. An increase/decrease of the price per share by USD 1.00 leads to a
increase/decrease of the derivative liability (Tranche B1) by approximately kEUR 330.
Credit risk
Credit risk is the risk of the Company suffering a financial loss as the result of its counterparties being unable to perform
their obligations. The Company is exposed to credit risk from its operating activities (mainly trade receivables) and from its
financing activities, including deposits and investments with financial institutions. Therefore, the carrying amount of cash and
cash equivalents, other current financial assets, and trade receivables represents the maximum credit exposure of € 15.4 million
(2019: € 17.7 million).
The Company’s exposure to credit risk is influenced by the individual characteristics of each customer. However,
Management also considers factors that influence the credit risk of its customer base, including the default risk of the industry
and the country in which the customer operates. voxeljet seeks to minimize such risk by entering into transactions with
counterparties that are believed to be creditworthy business partners or with financial institutions which meet high credit rating
requirements. In addition, the portfolio of receivables and customer advances is monitored on a continuous basis. There were no
customer loans outstanding as of December 31, 2020 and 2019. Since 2018, the Company calculates an expected credit loss
(ECL) based on the risk scoring its customers’ according to an external rating agency. Following the risk score of each customer,
the trade receivables are clustered into different grades. For each grade, the ECL is calculated after deducting from trade
receivables a loss allowance based on actual credit loss experience.
Grades
Grades 1-4:
Grades 5-7:
Grades 8-9:
Grade 10:
Grade 11:
Low risk
Fair risk
Substandard
Doubtful
Loss
December 31, 2020
Equivalent to external
credit rating
(Standard & Poor’s)
Weighted-average Gross carrying
loss rate
amount
BBB+ to AAA
B+ to BBB
CCC- to B
C to CC
D
0.2%
1.3%
7.0%
25.0%
100.0%
1,686
2,209
876
2
15
4,788
F-46
Impairment loss
allowance
(€ in thousands)
2
29
61
1
15
108
Net carrying
amount
1,684
2,180
815
1
0
4,680
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Grades
Grades 1-4:
Grades 5-7:
Grades 8-9:
Grade 10:
Grade 11:
Low risk
Fair risk
Substandard
Doubtful
Loss
December 31, 2019
Equivalent to external
credit rating
(Standard & Poor’s)
Weighted-average Gross carrying
loss rate
amount
BBB+ to AAA
B+ to BBB
CCC- to B
C to CC
D
0.2%
1.3%
7.0%
25.0%
100.0%
2,400
3,132
233
283
--
6,048
Impairment loss
allowance
(€ in thousands)
4
42
16
71
--
133
Net carrying
amount
2,396
3,090
217
212
--
5,915
The Group limits its exposure to credit risk by investing only in bond funds which are fully guaranteed by the financial
institutions and therefore represents short term credit rating of A-3 based on Standard & Poor’s or P-2 based on Moody’s.
The bank deposit are held with financial institutions, which are rated BBB to A2 based on Standard & Poor’s and
Moody’s.
Liquidity risk
Liquidity risk is the risk that voxeljet might not have sufficient cash to meet its payment obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the reputation of the Company. Liquidity risk is
countered by systematic, day-by-day liquidity management whose fundamental requirement is that solvency must be guaranteed
at all times. A major responsibility of management is to monitor the cash balances and to set up and update cash planning on a
monthly basis to ensure liquidity. At all times cash and cash equivalents are projected on the basis of a regular financial and
liquidity planning. The monitoring includes the expected cash inflows on trade and other receivables together with expected cash
outflows from trade and other payables and financing liabilities. For further discussion see Note 2.
The following are the contractual cash flows of financial liabilities and trade payables at the reporting date. The amounts
are gross and undiscounted and include contractual interest payments.
December 31,
2020
(€ in thousands)
carrying amount
Total
23,152
3,124
1,956
28,232
(31,280)
(3,715)
(1,956)
(36,951)
Contractual cash flow
2 months or
less
(295)
(71)
(1,956)
(2,322)
2-12
months
(25,236)
(341)
--
(25,577)
1-3 years
3-5 years
(915)
(1,627)
--
(2,542)
(625)
(637)
--
(1,262)
More than 5
years
(4,209)
(1,039)
--
(5,248)
December 31,
2019
(€ in thousands)
Contractual cash flow
carrying amount
Total
2 months or
less
2-12
months
1-3 years 3-5 years
More than 5
years
17,546
3,610
2,797
23,953
(22,050)
(4,409)
(2,797)
(29,256)
(178)
(102)
(2,797)
(3,077)
(10,818)
(447)
--
(11,265)
(1,252)
(1,054)
--
(2,306)
(5,296)
(1,307)
--
(6,603)
(4,506)
(1,499)
--
(6,005)
Long-term debt
Lease liability
Trade payables
Total
Long-term debt
Lease liability
Trade payables
Total
In spite of the significant cash outflow in 2020 and 2019, the Company’s short and mid-term liquidity needs are
currently covered. This is supported through the current liquidity forecast including certain sensitivities. The 24-months business
plan includes further raising of additional capital through additional debt, equity or other alternatives to ensure
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the cash requirements of the Company. The cash position of the Company has significantly improved in the first quarter of 2021
due to two successful capital increases in January and February 2021.
20. Reconciliation of movements of liabilities to cash flows arising from financing activities
Liabilities
Equity
Other
loans and
borrowings
17,546
Lease
liabilities
Subscribed
capital
Capital
reserves
Accumulated
deficit (1) (2)
Non-controlling
interests
Total (1)
(2)
3,610
4,836
88,077
(60,124)
(13)
53,932
(€ in thousands)
Balance at January 1, 2020
Changes from financing cash flows
Proceeds from loans and borrowings
Repayment of borrowings
Payment of lease liabilities
Total changes from financing cash flows
Other changes
Liability-related
New leases
Reclassification
Interest expense
Interest paid
Total liability-related other changes
(€ in thousands)
Balance at January 1, 2019
Adjustment on initial application of IFRS 16
Restated balance at January 1, 2019
Changes from financing cash flows
Proceeds from loans and borrowings
Repayment of borrowings
Payment of lease liabilities
Proceeds from issuance of shares
Total changes from financing cash flows
Other changes
Liability-related
New leases
Reclassification
Interest expense
Interest paid
Total liability-related other changes
Total equity-related other changes
Total equity-related other changes
—
—
Balance at December 31, 2020
23,152
3,124
4,836
88,748
(75,463)
Other
loans and
borrowings
17,066
—
17,066
Liabilities
Finance
lease
liabilities
105
(105)
—
Lease
liabilities
Subscribed
capital
Capital
reserves
Accumulated
deficit (1) (2)
Non-controlling
interests
Total (1)
(2)
Equity
—
3,574
3,574
4,836
—
4,836
86,803
—
86,803
(46,410)
—
(46,410)
5,000
(863)
—
4,137
—
—
(412)
(412)
—
—
1,602
(133)
1,469
(138)
22
167
(125)
(74)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
671
(15,339)
529
(969)
—
—
(440)
—
920
993
(993)
920
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(397)
—
(397)
954
(521)
190
(190)
433
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,274
(13,714)
3,610
4,836
88,077
(60,124)
—
—
—
—
—
—
—
—
—
(142)
(155)
5,000
(863)
(412)
3,725
(138)
22
1,769
(258)
1,395
—
(14,810)
—
44,242
35
—
35
—
—
—
—
—
62,435
3,469
65,904
529
(969)
(397)
—
(837)
954
—
399
—
—
1,183
— (1,183)
1,353
—
—
(12,488)
—
53,932
(48)
(13)
Balance at December 31, 2019
17,546
(1) Comparative figures for the year ended December 31, 2019, were revised related to the amendment of classification of short-
term investments. For further information, see Note 2 “Preparation of financial statements” to the consolidated financial
statements.
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Table of Contents
(2) Comparative figures for the year ended December 31, 2019, were revised related to the recalculation of the performance
participation interest related to the Finance Contract with the EIB. For further information, see Note 2 “Preparation of financial
statements” to the consolidated financial statements.
21. Capital management
Management’s aim is to maintain a sufficient capital base so as to maintain investor, creditor and market confidence and
to sustain future development of the business.
Equity is monitored by the Company using financial ratios. The equity used as a basis for determining the equity ratio
corresponds to the equity disclosed in the Consolidated Statement of Financial Position.
voxeljet’s capital structure as of the end of the reporting periods 2020 and 2019 was as follows:
CAPITAL STRUCTURE
Equity
Share of total equity and liabilities
Current financial liabilities
Non-current financial liabilities
Total financial liabilities
Share of total equity and liabilities
Total equity and liabilities
December 31,
2020
2019 (1) (2)
(€ in thousands)
19,641
36.9%
19,770
7,314
27,084
50.9%
53,227
33,518
53.6%
11,290
9,866
21,156
33.8%
62,565
(1) Comparative figures for the year ended December 31, 2019, were revised related to the amendment of classification of short-
term investments. For further information, see Note 2 “Preparation of financial statements” to the consolidated financial
statements.
(2) Comparative figures for the year ended December 31, 2019, were revised related to the recalculation of the performance
participation interest related to the Finance Contract with the EIB. For further information, see Note 2 “Preparation of financial
statements” to the consolidated financial statements.
LOAN COVENANTS
Under the terms of the major borrowing facilities, voxeljet is required to comply with the following financial covenants:
- Maintain a minimum amount of cash and cash equivalents
- Maintain a minimum total net financial debt ratio to total equity
-
Pledge of a certain security deposit
The Company has breached the minimum cash and cash equivalents covenant as of December 31, 2020, as described in
Note 2.
22. Leases
The Group has initially adopted IFRS 16, Leases on January 1, 2019. For further information, see Note 3 “Summary of
significant accounting policies” to the consolidated financial statements.
Leases as lessee
The Company leases assets, including properties, production equipment and vehicles. As a lessee, the Company
previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all
of the risks and rewards of ownership. Under IFRS 16, the Company recognizes right-of-use assets and lease liabilities for most
leases. These leases are on-balance sheet.
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However, the Company has elected not to recognize right-of-use assets and lease liabilities for some leases of low-value
assets (e.g. tools) as well as short-term leases (leases with less than 12 months of lease term). The Company recognizes the lease
payments associated with these leases as an expense on a straight-line basis over the lease term.
Right-of-use assets:
Balance at January 1, 2020
Depreciation charge of the year
Additions to the right-of-use assets
Derecognition of the right-of-use assets
FX
Balance at December 31, 2020
Amounts recognized in profit or loss:
Leases under IFRS 16
Interest on lease liabilities
Expenses relating to short-term-leases
Depreciation charge of the year
Amounts recognized in statement of cash flows:
Total cash outflow for leases
Property
Property, plant and equipment
Production equipment
(€ in thousands)
72
(27)
--
--
--
45
3,658
(508)
11
(68)
(201)
2,892
254
(147)
148
--
(1)
254
Others
Total
3,984
(682)
159
(68)
(201)
3,191
190
39
765
(397)
2020
2019
(€ in thousands)
167
--
682
2020
2019
(€ in thousands)
(412)
Some property leases contain extension options exercisable by the Group up to one year before the end of the non-
cancellable contract period. Where practicable, voxeljet seeks to include extension options in new leases to provide operational
flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at lease
commencement date whether it is reasonably certain to exercise the extension options. The Group reassesses whether it is
reasonably certain to exercise the options, if there is a significant event or significant changes in circumstances within its control.
For all existing extension options, voxeljet assessed that the exercise of those is reasonably certain. Therefore the impact
is already included within the lease liabilities.
Leases as lessor
The Company leases out a small number of 3D printers. Those leases have been classified as operating leases.
Lease income from operating lease:
Operating lease under IFRS 16
Less than one year
23. Commitments, contingent assets and liabilities
2020
2019
(€ in thousands)
--
38
In connection with the enforcement of voxeljet’s intellectual property rights, the acquisition of third-party intellectual
property rights, or disputes related to the validity or alleged infringement of the Company’s or a third-party’s intellectual property
rights, including patent rights, voxeljet has been and may in the future be subject or party to claims, negotiations or complex,
protracted litigation.
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In March 2018, ExOne GmbH, a subsidiary of ExOne, notified voxeljet of its intent not to pay its annual license fees
under an existing intellectual property-related agreement and asserted its rights to claim damages pursuant to an alleged material
breach of the agreement. At this time, the Company cannot reasonably estimate a contingency, if any, related to this matter.
24. Related party transactions
Related party transactions at voxeljet mainly consist of transactions with individuals on the Management Board and
Supervisory Board.
Key management is defined as those individuals having authority and responsibility for planning, directing and
controlling the activities of the Company within their function and within the interest of the Company.
The following table presents the amount and components of Management Board compensation:
MANAGEMENT COMPENSATION
Fixed compensation
Variable compensation
Compensation from stock option plan
Total
2020
Year Ended December 31,
2019
(€ in thousands)
2018
761
--
353
1,114
782
--
353
1,135
781
--
360
1,141
Management Board remuneration currently consists of a fixed monetary remuneration, other fixed benefits (including
Company car allowances and contributions to a defined contribution plan) as well as the participation in a stock options plan,
which was executed on April 7, 2017. There were no variable compensations for the years 2018, 2019 and 2020.
Ordinary members of the Supervisory Board receive a fixed remuneration in the amount of kEUR 40 per annum. The
chairman and vice chairman of the Supervisory Board receive a higher fixed remuneration in the amount of kEUR 80 per annum
and kEUR 60 per annum, respectively. If a member of the Supervisory Board does not serve for a full year term, the
remuneration is paid pro rata temporis. In 2020, the total remuneration for the Supervisory Board amounted to kEUR 180.
Transactions with related parties
A related party relationship could have an effect on the profit and loss and financial position of the Company. Defined
as related parties are individuals or other third parties with whom voxeljet has common control relationships.
OTHER RELATED PARTIES
Name
Franz Industriebeteiligungen AG, Augsburg
Schlosserei und Metallbau Ederer, Dießen
Andreas Schmid Logistik AG, Gersthofen
Suzhou Meimai Fast Manufacturing Technology Co., Ltd, Suzhou
DSCS Digital Supply Chain Solutions GmbH, Gersthofen
Michele Neuber
Nature of relationship
Lessor
Supplier
Supplier
Minority shareholder of voxeljet China,
Customer
Customer
Employee
Duration of relationship
10/01/2003 - Current
05/01/1999 - Current
05/01/2017 - Current
04/11/2016 - Current
05/11/2017 - Current
07/01/2019 - Current
Transactions with Franz Industriebeteiligungen AG comprise the rental of office space in Augsburg, Germany. Rental
expenses amounted to kEUR 3, kEUR 2, and kEUR 2 in 2020, 2019 and 2018, respectively. The rental of office space is ongoing
and will continue in 2021. In addition, Franz Industriebeteiligungen AG received payments related to the use of certain paintings
which are placed in the administrative building in Friedberg. Associated rental expenses amounted to kEUR 2 in 2018. At the
beginning of 2019, voxeljet acquired those paintings at a price of kEUR 2 and consequently the rental agreement pertaining to the
paintings was terminated.
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Further, voxeljet acquired goods amounting to kEUR 0, kEUR 0 and kEUR 7 in 2020, 2019 and 2018, respectively from
‘Schlosserei und Metallbau Ederer’, which is owned by the brother of Dr. Ingo Ederer, the Chief Executive Officer of voxeljet.
In addition, voxeljet received logistics services amounting to kEUR 25, kEUR 56 and kEUR 74 in 2020, 2019 and 2018,
respectively from ‘Andreas Schmid Logistik’, where voxeljet’s Supervisory Board member Dr. Stefan Söhn served as the Chief
Financial Officer until December 2020.
Moreover, voxeljet received orders amounting to kEUR 25, kEUR 164 and kEUR 175 in 2020, 2019 and 2018,
respectively from ‘Suzhou Meimai Fast Manufacturing Technology Co., Ltd., which is our minority shareholder for voxeljet
China.
Further, voxeljet received orders amounting to kEUR 0, kEUR 13 and kEUR 0 in 2020, 2019 and 2018, respectively
from ‘DSCS Digital Supply Chain Solutions GmbH’, which is an associated company of which we own 33.3%.
In addition, voxeljet employs Michele Neuber as an intern. Michele Neuber is the son of Volker Neuber, who has been a
member of voxeljet’s Supervisory Board since July 2020. He received a salary of kEUR 2 and kEUR 2 in 2020 and 2019,
respectively.
voxeljet employed Simon Franz, who is the son of voxeljet’s Chief Financial Officer Rudolf Franz, as an intern until
July 31, 2019. He received a salary of kEUR 9 and kEUR 12 in 2019 and 2018, respectively.
All related party transactions, voxeljet entered into, were made on an arm’s length basis.
25. Equity
At December 31, 2020, 4,836,000 no-par value ordinary shares were issued and outstanding. There is only a single class
of ordinary shares with the same rights, preferences and restrictions. Each share entitles the holder to one vote at the
shareholders’ meeting. Shareholders participate in the profits according to their share in the share capital, based on their number
of shares held. The general shareholders’ meeting resolves the appropriation of the balance sheet profit established in the annual
financial statements and the dividends.
On October 18, 2018, voxeljet issued 972,000 ordinary shares, equivalent to 4,860,000 American Depository Shares
(“ADS”), at an offering price of $2.57 per ADS (the “Public Offering Price”). The Company received net proceeds of
approximately € 9.7 million. Members of the Management Board, who are also significant shareholders, purchased an aggregate
number of 233,462 ADSs in this offering at the Public Offering Price. On November 8, 2018, voxeljet closed the over-allotment
transaction in which it issued additional 144,000 ordinary shares, equivalent to 720,000 ADSs, upon the exercise of the over-
allotment option exercised by the underwriter on November 1, 2018. The Company received net proceeds of approximately
€ 1.4 million. Incremental costs of € 0.6 million directly attributable to the issue of ordinary shares are recognized as a deduction
from equity.
On July 31, 2020, the Company announced that it would change the ratio of its ADSs to ordinary shares from each ADS
representing one-fifth (1/5) of one ordinary share (5:1) to each ADS representing one ordinary share (1:1). For ADS holders, the
ratio change had the same effect as a 1 for 5 reverse ADS split. The ratio change became effective on August 14, 2020 (the
“Effective Date”). On the Effective Date, each ADS holder was required to exchange every five (5) ADSs then held for one (1)
new ADS (e.g., if a holder of ADSs previously held 50 ADSs, following the ratio change on the Effective Date, such holder helds
10 ADSs). Citibank, N.A., as depositary bank, has arranged for the exchange of the current ADSs for the new ones. There was no
change to voxeljet’s underlying ordinary shares.
On August 18, 2020, the Company announced that it would voluntarily transfer the listing of the ADSs from the New
York Stock Exchange (the “NYSE”) to the NASDAQ, effective August 28, 2020, after market close. voxeljet’s ADSs began
trading as a NASDAQ-listed security at market open on August 31, 2020, and have continued to be listed under the ticker symbol
“VJET.” Due to the transfer of the listing to the NASDAQ, the Company is no longer subject to the listing requirements of the
NYSE. As of December 31, 2020, voxeljet was in compliance with the NASDAQ Listing Rules.
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The Articles of Association authorize the Management Board, subject to the consent of the Supervisory Board, to
increase the Company’s registered share capital in one or more tranches by up to € 1,353,416 by issuing up to 1,353,416 new no-
par value ordinary shares against contribution in cash or in kind until May 28, 2024. On January 25, 2021 and on February 17,
2021, the Company completed two registered direct offerings and sold of 621,170 and 443,414 ordinary shares in the form ADS.
For further information, see Note 26 “Subsequent events” to the consolidated financial statements.
26. Subsequent events
Capital Increases
On January 25, 2021, the Company announced that it has completed its registered direct offering and sale of 621,170
ordinary shares in the form of ADS at a purchase price of € 13.33 per share (this equals $16.16 per ordinary share based on the
exchange rate as of the close of business in New York on January 14, 2021).
The gross proceeds of the offering amount to approximately $10 million (€ 8.3 million) before deducting fees and
expenses. The Company intends to use the net proceeds of the offering for general corporate purposes. A.G.P./Alliance Global
Partners acted as sole placement agent for the offering.
On February 17, 2021, the Company announced that it has completed its registered direct offering and sale of
443,414 ordinary shares in the form of ADS at a purchase price of € 22.27 per share (this equals $26.95 per ordinary share based
on the exchange rate as of the close of business in New York on February 9, 2021).
The gross proceeds of the offering amount to approximately $12 million (€ 9.9 million) before deducting fees and
expenses. The Company intends to use the net proceeds of the offering for general corporate purposes. A.G.P./Alliance Global
Partners acted as sole placement agent for the offering.
After those two capital increases, the number of outstanding shares of the Company as of March 1, 2021 amounts to
5,900,584. Based on this number of shares, loss per share – basic and diluted – for fiscal year 2020 amounts to € 2.61.
Finance Contract Debt Covenant
In June 2020, the Company announced that the EIB and voxeljet further expanded their partnership. The EIB disbursed
€ 5.0 million of the second tranche (tranche B1) of the loan in June 2020 with a bullet repayment after five years. In addition, the
EIB and the Company amended the financial covenants in the Finance Contract to replace the Total Net Financial Debt to
EBITDA ratio with the Minimum Cash Covenant. As of June 30, 2020, pursuant to the semi-annual financial testing prescribed
by the Finance Contract, as amended, the Company was in compliance with the Minimum Cash Covenant. However, in March
2021, the Company discovered that its calculation of cash and cash equivalents for determining compliance with the Minimum
Cash Covenant was incorrect and, accordingly, the Company was not in compliance with the Minimum Cash Covenant as of
December 31, 2020. Also in March 2021, the Company received a waiver from the EIB for the noncompliance with the
Minimum Cash Covenant, pursuant to which (i) the EIB agreed that it will not demand immediate repayment of the outstanding
amounts owed and (ii) the EIB and the Company amended the financial covenants in the Finance Contract to clarify the
calculation of cash and cash equivalents for determining compliance with the Minimum Cash Covenant.
F-53
DESCRIPTION OF THE REGISTRANT'S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934
The following description sets forth certain material terms and provisions of the securities of voxeljet AG (“voxeljet,” or
the “Company,” “we,” “us,” and “our”) that are registered under Section 12 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”). This description also summarizes relevant provisions of German corporate law, including
the German Stock Corporation Act (Aktiengesetz, or AktG). The following summary does not purport to be complete and is
subject to, and is qualified in its entirety by reference to, the applicable provisions of German corporate law, our rules of
procedure of the supervisory board, our rules of procedure of the management board, our articles of association and
Deposit Agreement, as amended from time to time, which are incorporated by reference as exhibits to the Annual Report
on 20-F of which this Exhibit is a part. We encourage you to read these exhibits for additional information.
General
Our securities include (a) our ordinary shares, at no par value and €1.00 nominal value per share, and (b) our American
Depositary Shares (the “ADSs”), each representing one ordinary share, €1.00 nominal value per share. Our ordinary
shares are registered under the Exchange Act not for trading purposes, but only in connection with the registration of
ADSs pursuant to the requirements of the Securities and Exchange Commission (the “Commission”).
Our ADSs are listed on the NASDAQ Capital Market under the trading symbol “VJET.”
The following is a description of the rights of (i) the holders of ordinary shares and (ii) ADS holders. Ordinary shares
underlying the outstanding ADSs are held by Citibank N.A., as depositary.
Ordinary Shares
The following is a summary of the rights of our holders of our ordinary shares as specified in our articles of
association.
Type and Class of Securities
Each ordinary share has no par value and a nominal value of €1.00 per share.
Authorized Ordinary Shares
The articles of association authorize the management board, subject to the consent of the supervisory board, to increase the
Company's registered share capital in one or more tranches by up to € 1,353,416 by issuing up to 1,353,416 new no par value
ordinary shares against contribution in cash or in kind until May 28, 2024. The outstanding shares of our ordinary share are
duly authorized, validly issued, fully paid and nonassessable.
Subscription Rights
In principle, shareholders shall be granted subscription rights for new shares. Under German law, the statutory subscription
right may also be offered in such a way that the new shares are taken over by a bank or by a financial institution which is
then obligated to offer them indirectly to the shareholders for subscription.
Under our articles of association, with the consent of the supervisory board, the management board is authorized to exclude
the shareholders' subscription rights in the following circumstances:
●
●
●
to exclude fractional amounts resulting from the subscription ratio from the statutory subscription right of the
shareholders;
in the case of increases of the share capital against contributions in kind, in particular, but without limitation, to
acquire companies, divisions of companies or interests in companies; or
in the case that the increase of the share capital is against contributions in cash, and provided that the issue price of
the new shares is not substantially lower (as defined in the German Stock Corporation Act) than the stock exchange
price for our shares of the same class and having the same conditions already listed at the time of the final
determination of the issue price, and further provided that the amount of the share capital represented by the shares
issued under the exclusion of the statutory subscription right granted pursuant to German law does not exceed 10%
of the share capital at the time of this authorization coming into effect or being exercised. The 10% threshold shall
include new or treasury shares of the Company which are issued or transferred during the term of this authorized
capital on another legal basis under the exclusion of the statutory subscription rights granted pursuant to German
law.
According to the German Stock Corporation Act, every shareholder is generally entitled to subscription rights (commonly
known as preemptive rights) to any new shares issued within the framework of a capital increase, including convertible
bonds, bonds with warrants, profit-sharing rights or income bonds in proportion to the number of shares he or she holds in
the corporation's existing share capital. Under German law, these rights do not apply to shares issued out of conditional
capital. A minimum subscription period of two weeks must be provided for the exercise of such subscription rights.
Under German law, the shareholders' meeting may pass a resolution excluding subscription rights if at least three-quarters of
the share capital represented adopts the resolution. To exclude subscription rights, the management board must also make a
report available to the shareholders justifying the exclusion and demonstrating that the company's interest in excluding the
subscription rights outweighs the shareholders' interest in having them. In addition to approval by the general shareholders'
meeting, the exclusion of subscription rights requires a justification. The justification must be based on the principle that our
interest in excluding subscription rights outweighs the shareholders' interest in their subscription rights and may be subject to
judicial review. Accordingly, under German law, the exclusion of subscription rights upon the issuance of new shares is
permitted, in particular, if we increase the share capital against cash contributions, if the amount of the capital increase does
not exceed 10% of the existing share capital and the issue price of the new shares is not significantly lower than the market
price of our shares.
The authorization of the management board to issue convertible bonds or other securities convertible into shares must be
limited to a period not exceeding five years as of the respective shareholder resolution.
Shareholders' Meetings, Resolutions and Voting Rights
Pursuant to our articles of association, shareholders' meetings may be held at our registered offices, at the registered seat of a
German stock exchange or in a German city with more than 100,000 inhabitants. In general, shareholders' meetings are
convened by our management board. The supervisory board is additionally required to convene a shareholders' meeting in
cases where this is required under binding statutory law (i.e., if this is in the best interest of the Company). In addition,
shareholders who, individually or as a group, own at least 5% or €500,000 of our share capital may request that modified or
additional items be added to the agenda and that these items be published before the shareholders' meeting take place, and
that our management board convene a shareholders' meeting. If our management board does not convene a shareholders'
meeting upon such a request, the shareholders may petition the competent German court for authorization to convene a
shareholders' meeting.
Each share carries one vote at a shareholders' meeting.
Our articles of association provide that the resolutions of the shareholders' meeting are adopted by a simple majority of the
votes cast. To the extent required by law, certain resolutions may have to be approved by a simple majority of share capital
represented at the meeting, in addition to the majority of votes cast.
Neither the German laws nor our articles of association provide for a minimum participation for a quorum for our
shareholders' meetings.
Under German law, certain resolutions of fundamental importance require the vote of at least three-quarters of the share
capital present or represented in the voting at the time of adoption of the resolution. Resolutions of fundamental importance
include, in particular, capital increases with exclusion of subscription rights, capital decreases, the creation of authorized or
conditional share capital, the dissolution of a company, a merger into or with another company, split-offs and split-ups, the
conclusion of inter-company agreements (Unternehmensverträge), in particular control agreements (Beherrschungsverträge)
and profit and loss transfer agreements (Ergebnisabführungsverträge), and a change of the legal form of a company.
Dividend Rights
Under German law, distributions of dividends on shares for a given fiscal year are generally determined by a process in
which the management board and supervisory board submit a proposal to our annual general shareholders' meeting held in
the subsequent fiscal year and such annual general shareholders' meeting adopts a resolution. German law provides that a
resolution concerning dividends and distribution thereof may be adopted only if the company's unconsolidated financial
statements under the applicable law show net retained profits.
Shareholders participate in profit distributions in proportion to the number of shares they hold. Dividends on shares resolved
by the general shareholders' meeting are paid annually, shortly after the general shareholders' meeting, in compliance with
the rules of the respective clearing system. Dividend payment claims are subject to a three-year statute of limitation in the
company's favor.
Liquidation Rights
Apart from liquidation as a result of insolvency proceedings, we may be liquidated only with a vote of the holders of at least
three-quarters of the share capital represented at the shareholders' meeting at which such a vote is taken. If we are liquidated,
any assets remaining after all of our liabilities have been paid off would be distributed among our shareholders in proportion
to their holdings in accordance with German statutory law. The German Stock Corporation Act provides certain protections
for creditors which must be observed in the event of liquidation.
Authorization to Acquire Treasury Shares
The shareholders' meeting adopted a resolution on June 30, 2020 authorizing us, for a period until June 29, 2025, to acquire
treasury shares in the total amount of up to 10% of the share capital existing at the time the resolution was passed by the
shareholders' meeting or – if lower – at the time the authorization is exercised. The shares acquired on the basis of this
authorization and the other shares of the Company already acquired and still held by, or to be attributable to it pursuant to the
provisions of the German Stock Corporation Act, must at no time exceed 10% of the relevant share capital. This
authorization comprises the acquisition of listed ADRs of the Company, provided that, with regard to the limitation of the
acquisition volume to 10% of the share capital, the number of ADRs shall be divided by the number of ADRs representing
one share. The acquisition shall occur by means of purchase on the stock exchange on which the shares / respectively ADRs
of the Company are traded or by means of a purchase offer addressed to all shareholders.
We are authorized to utilize the treasury shares / respectively ADRs acquired on the basis of this authorization in accordance
with the provisions of the German Stock Corporation Act for all other statutory permissible purposes, besides a sale on the
stock exchange, particularly for the following:
●
●
The treasury shares / respectively ADRs may be offered and transferred with the supervisory board's consent for
non-cash consideration, particularly in the course of corporate mergers or in the course of the
●
direct or indirect acquisition of companies, divisions of companies, operational activities, branches of activity,
shares in companies or other assets.
The treasury shares / respectively ADRs may be sold with the supervisory board's consent also in another way than
on the stock exchange if they are sold for cash consideration at a price that is not materially lower than the stock
exchange price of the shares / respectively ADRs of the Company at the time of their sale. The relevant stock
exchange price within the meaning of the provision above shall be the arithmetic mean of the closing price of the
ADRs during the last three trading days prior to the day of the sale of treasury shares. The provision above shall
apply to the sale of treasury shares with the proviso that, in the calculation of the permissible selling price, the stock
exchange price of an ADR shall be multiplied by the number of ADRs representing one share. This authorization is
limited to the disposal of shares or ADRs representing no more than 10% of the share capital at the time this
authorization takes effect or – if that value is lower, of the share capital existing at the point in time this
authorization is exercised. Shares / respectively ADRs that are issued or sold during the duration of this
authorization until the time of its exercise under the simplified exclusion of the statutory subscription rights granted
pursuant to German law shall be credited against this limitation of 10% of the share capital.
● With the consent of the supervisory board, treasury shares may be redeemed without requiring another resolution of
the general meeting for the redemption or its enforcement. Redemption may be enforced by means of a capital
decrease or without capital decrease by adjusting the proportionate amount of the remaining shares in the share
capital. For this purpose, the management board is authorized to amend the number of shares in the articles of
association.
● With the consent of the supervisory board, treasury shares may also be delivered to the holders of warrants or
convertible bonds of the Company or its group companies. This also applies to the delivery of ADRs as a result of
the exercise of subscription rights which in the case of a disposal of treasury shares or ADRs or in the case of a
capital increase with subscription rights may be granted to the holders of warrant or convertible bonds of the
Company or its group companies to the extent to which the holders of warrant or convertible bonds would be
entitled to a subscription right for shares of our company upon exercise of the warrant or conversion right or
fulfilment of the warrant or conversion obligation. On aggregate, the shares or ADRs transferred on the basis of this
authorization may not exceed 10% of the share capital at the time the authorization takes effect or – if this value is
lower – of the share capital existing on the date of the exercise of the authorization, provided that the shares or
ADRs are used for the fulfilment of warrant or conversion rights or warrant or conversion obligations which were
granted or created under the simplified exclusion of statutory subscription rights pursuant to German law. The said
10% threshold shall also include shares of the Company and ADRs which are issued or transferred during the term
of this authorization on another legal basis under the simplified exclusion of the statutory subscription rights
granted pursuant to German law. The limitation of the issue volume to 10% of the share capital shall apply to ADRs
with the provision that the number of ADRs is to be divided by the number of ADRs representing one share.
The above authorizations may, in each case, be exercised independently of each other, once or repeatedly, individually or
jointly, fully or partially, even by group companies or third parties acting for the account of the Company or its group
companies. Any acquired treasury shares may also be transferred to group companies.
Squeeze-Out of Minority Shareholders
Under German law, the shareholders' meeting of a stock corporation may resolve upon request of a shareholder that holds at
least 95% of the share capital that the shares held by any remaining minority shareholders be transferred to this shareholder
against payment of “adequate cash compensation” (Ausschluss von Minderheitsaktionären). This amount must take into
account the full value of the company at the time of the resolution, which is generally determined using the future earnings
value method (Ertragswertmethode).
Preemptive and Other Rights
Under our articles of association, with exception of the subscription rights in case of capital increase described above,
holders of our ordinary shares are not entitled to preemptive rights with respect to any shares which may be issued, and there
are no conversion rights or redemption, purchase, retirement or sinking fund provisions with
respect to our ordinary shares. Moreover, the management board is authorized to determine, subject to the consent of the
supervisory board, the further details regarding the rights attached to the shares and the conditions of the share issue.
Certain Anti-Takeover Effects
Certain provisions of our articles of association, our rules of procedure of the supervisory board could have certain anti-
takeover effects and may delay, deter or prevent a tender offer or takeover attempt that a stockholder might consider to be in
its best interests, as discussed below:
Extraordinary Meeting of the Supervisory Board. Our rules of procedure of the supervisory board provide that the chairman
of the supervisory board may, if required, convene an extraordinary meeting of the supervisory board if he is informed by the
chairman of the management board of important events which are essential for the assessment of the situation and
development as well as for the management of the Company. Each member of the supervisory board or the management
board, indicating the purpose and the reasons for the request, shall be entitled to have the chairman of the supervisory board
convene a meeting of the supervisory board without delay. Should this request be denied, the member of the supervisory
board or the management board may provide an agenda and convene the supervisory board themselves.
Prior approval by the supervisory board. Our rules of procedure of the management board provide that, among other things,
the following require prior approval by the supervisory board: i) the purchase or sale of legal entities, and ii) the purchase,
sale, creation, extension, reduction or termination of business activities, including tangible or intangible assets and joint
ventures, if the relevant price or value, in each case, exceeds €50,000.
Prior approval by the management board. Our rules of procedure of the management board provide that, among other
things, the following require prior approval by the management board: fundamental organizational measures, such as the
conclusion of or amendment to company transfer agreements (Section 291 et seqq. German Stock Corporation Act),
transformation measures within the meaning of the German Transformation of Companies Act (Umwandlungsgesetz), sale or
acquisition of material company assets as well as issues of strategy and business planning as set out in Section 90 para. 1 no.
1 German Stock Corporation Act.
No Cumulative Voting or Classified Board. Our articles of association do not provide for cumulative voting on the election
of directors and we currently do not have a classified board.
American Depositary Shares
Depositary
We have appointed Citibank, N.A. (“Citibank”) as the depositary for the ADSs pursuant to a deposit agreement (the “Deposit
Agreement”). Citibank's depositary offices are located at 388 Greenwich Street, New York, New York 10013.
Provisions
Each ADS represents the right to receive, and to exercise the beneficial ownership interest in, one ordinary share on deposit
with the custodian. An ADS also represents the right to receive any other property received by the depositary or the
custodian on behalf of the owner of the ADS but that has not been distributed to the owners of ADSs because of legal
restrictions or practical considerations.
The custodian, the depositary and their respective nominees will hold all deposited property for the benefit of the holders and
beneficial owners of ADSs. The deposited property does not constitute the proprietary assets of the depositary, the custodian
or their nominees. Beneficial ownership in the deposited property will under the terms of the Deposit Agreement be vested in
the beneficial owners of the ADSs. The depositary, the custodian and their respective nominees will be the record holders of
the deposited property represented by the ADSs for the benefit of the holders and beneficial owners of the corresponding
ADSs. A beneficial owner of ADSs may or may not be the holder of ADSs. Beneficial owners of ADSs will be able to
exercise beneficial ownership interests in the deposited
property only through the registered holders of the ADSs, by the registered holders of the ADSs (on behalf of the applicable
ADS owners) only through the depositary, and by the depositary (on behalf of the owners of the corresponding ADSs)
directly, or indirectly through the custodian or their respective nominees, in each case upon the terms of the Deposit
Agreement.
An owner of ADSs is not treated as one of our shareholders and will not have direct shareholder rights. The depositary will
hold the shareholder rights attached to the ordinary shares on the owner's behalf. An owner of ADSs will be able to exercise
the shareholders rights for the ordinary shares represented by the owner's ADSs through the depositary only to the extent
contemplated in the Deposit Agreement. To exercise any shareholder rights not contemplated in the Deposit Agreement, the
owner will need to arrange for the cancellation of ADSs and become a direct shareholder.
Dividends and Distributions
A holder of ADSs generally has the right to receive the distributions we make on the securities deposited with the custodian.
Receipt of these distributions may be limited, however, by practical considerations and legal limitations. Holders of ADSs
will receive such distributions under the terms of the Deposit Agreement in proportion to the number of ADSs held as of a
specified record date, after deduction of the applicable fees, taxes and expenses.
Distributions of Cash
Whenever we make a cash distribution for the securities on deposit with the custodian, we will deposit the funds with the
custodian. Upon receipt of confirmation of the deposit of the requisite funds, the depositary will arrange for the funds to be
converted into U.S. dollars and for the distribution of the U.S. dollars to the holders, subject to the laws and regulations of
Germany.
The conversion into U.S. dollars will take place only if practicable and if the U.S. dollars are transferable to the United
States. The depositary will apply the same method for distributing the proceeds of the sale of any property (such as
undistributed rights) held by the custodian in respect of securities on deposit.
The distribution of cash will be made net of the fees, expenses, taxes and governmental charges payable by holders under the
terms of the Deposit Agreement. The depositary will hold any cash amounts it is unable to distribute in a non-interest
bearing account for the benefit of the applicable holders and beneficial owners of ADSs until the distribution can be effected
or the funds that the depositary holds must be escheated as unclaimed property in accordance with the laws of the relevant
states of the United States.
Distributions of Ordinary Shares
Whenever we make a free distribution of ordinary shares for the securities on deposit with the custodian, we will deposit the
applicable number of ordinary shares with the custodian. Upon receipt of confirmation of such deposit, the depositary
will either distribute to holders new ADSs representing the ordinary shares deposited or modify the ADS-to-ordinary shares
ratio, in which case each ADS held will represent rights and interests in the additional ordinary shares so deposited. Only
whole new ADSs will be distributed. Fractional entitlements will be sold and the proceeds of such sale will be distributed as
in the case of a cash distribution.
The distribution of new ADSs or the modification of the ADS-to-ordinary shares ratio upon a distribution of ordinary shares
will be made net of the fees, expenses, taxes and governmental charges payable by holders under the terms of the Deposit
Agreement. In order to pay such taxes or governmental charges, the depositary may sell all or a portion of the new ordinary
shares so distributed.
No such distribution of new ADSs will be made if it would violate a law (i.e., the U.S. securities laws) or if it is not
operationally practicable. If the depositary does not distribute new ADSs as described above, it may sell the ordinary shares
received upon the terms described in the Deposit Agreement and will distribute the proceeds of the sale as in the case of a
distribution of cash.
Distributions of Rights
Whenever we intend to distribute rights to purchase additional ordinary shares, we will give prior notice to the depositary
and we will assist the depositary in determining whether it is lawful and reasonably practicable to distribute rights to
purchase additional ADSs to holders.
The depositary will establish procedures to distribute rights to purchase additional ADSs to holders and to enable such
holders to exercise such rights if it is lawful and reasonably practicable to make the rights available to holders of ADSs, and
if we provide all of the documentation contemplated in the Deposit Agreement (such as opinions to address the lawfulness of
the transaction). Holders may have to pay fees, expenses, taxes and other governmental charges to subscribe for the new
ADSs upon the exercise of their rights. The depositary is not obligated to establish procedures to facilitate the distribution
and exercise by holders of rights to purchase new ordinary shares other than in the form of ADSs.
The depositary will not distribute the rights to the holders if:
● we do not timely request that the rights be distributed to the holders or we request that the rights not be distributed
to the holders;
● we fail to deliver satisfactory documents to the depositary;
●
●
the depositary determines that it is not reasonably practicable to distribute the rights; or
any rights to be distributed are not exercised and appear to be about to lapse.
The depositary will sell the rights that are not exercised or not distributed if such sale is lawful and reasonably practicable.
The proceeds of such sale will be distributed to holders as in the case of a cash distribution. If the depositary is unable to sell
the rights, it will allow the rights to lapse.
Elective Distributions
Whenever we intend to distribute a dividend payable at the election of shareholders either in cash or in additional ADSs, we
will give prior notice thereof to the depositary and will indicate whether we wish the elective distribution to be made
available to the holders. In such case, we will assist the depositary in determining whether such distribution is lawful and
reasonably practicable.
The depositary will make the election available to the holders only if it is reasonably practicable and if we have provided all
of the documentation contemplated in the Deposit Agreement. In such case, the depositary will establish procedures to
enable the holders to elect to receive either cash or additional ADSs, in each case as described in the Deposit Agreement.
If the election is not made available to the holders, the holders will receive either cash or additional ADSs, depending on
what a shareholder in Germany would receive upon failing to make an election, as more fully described in the Deposit
Agreement.
Other Distributions
Whenever we intend to distribute property other than cash, ordinary shares or rights to purchase ordinary shares, we will
notify the depositary in advance and will indicate whether we wish such distribution to be made to the holders. If so, we will
assist the depositary in determining whether such distribution to holders is lawful and reasonably practicable.
If it is reasonably practicable to distribute such property to the holders and if we provide all of the documentation
contemplated in the Deposit Agreement, the depositary will distribute the property to the holders in a manner it deems
practicable.
The distribution will be made net of fees, expenses, taxes and governmental charges payable by holders under the terms of
the Deposit Agreement. In order to pay such taxes and governmental charges, the depositary may sell all or a portion of the
property received.
The depositary will not distribute the property to holders and will sell the property if:
● we do not timely request that the rights be distributed to the holders or we request that the rights not be distributed
to the holders;
● we fail to deliver satisfactory documents to the depositary; or
●
the depositary determines that all or a portion of the distribution is not reasonably practicable.
The proceeds of such a sale will be distributed to holders as in the case of a cash distribution.
Changes Affecting Ordinary Shares
The ordinary shares held on deposit for ADSs may change from time to time. For example, there may be a change in
nominal or par value, a split-up, cancellation, consolidation or any other reclassification of such ordinary shares or a
recapitalization, reorganization, merger, consolidation or sale of assets of the Company.
If any such change were to occur, the ADSs would, to the extent permitted by law, represent the right to receive the property
received or exchanged in respect of the ordinary shares held on deposit. The depositary may in such circumstances deliver
new ADSs to the holders, amend the Deposit Agreement, the ADRs and the applicable registration statement(s), call for the
exchange of the holders' existing ADSs for new ADSs and take any other actions that are appropriate to reflect as to the
ADSs the change affecting the ordinary shares. If the depositary may not lawfully distribute such property to the holders, the
depositary may sell such property and distribute the net proceeds as in the case of a cash distribution.
Withdrawal of Ordinary Shares Upon Cancellation of ADSs
Holders will be entitled to present their ADSs to the depositary for cancellation and then receive the corresponding number
of underlying ordinary shares at the custodian's offices. Holders' ability to withdraw the ordinary shares may be limited by
U.S. and German considerations applicable at the time of withdrawal. In order to withdraw the ordinary shares represented
by the ADSs, holders will be required to pay to the depositary the fees for cancellation of ADSs and any charges and taxes
payable upon the transfer of the ordinary shares being withdrawn. Holders assume the risk for delivery of all funds and
securities upon withdrawal. Once canceled, the ADSs will not have any rights under the Deposit Agreement.
Holders will have the right to withdraw the securities represented by their ADSs at any time except for:
●
●
●
●
temporary delays caused by closing the transfer books of the depositary or the Company or the deposit of ordinary
shares in connection with voting at a shareholders' meeting or the payment of dividends;
the payment of fees, taxes and similar charges;
compliance with any U.S. or foreign laws or governmental regulations relating to the ADSs or the withdrawal of
securities on deposit; or
other circumstances specifically contemplated by Instruction I.A.(l) of the General Instructions to Form F-6 (as
such General Instructions may be amended from time to time).
The Deposit Agreement may not be modified to impair a holder's right to withdraw the securities represented by the holder's
ADSs except to comply with mandatory provisions of law.
Voting Rights
Holders generally have the right under the Deposit Agreement to instruct the depositary to exercise the voting rights for the
ordinary shares represented by the ADSs. At our request, the depositary will distribute to the holders any
notice of a shareholders' meeting together with information explaining how to instruct the depositary to exercise the voting
rights of the securities represented by ADSs.
If the depositary timely receives voting instructions from a holder of ADSs, it will endeavor to vote the securities (in person
or by proxy) represented by the holder's ADSs in accordance with such voting instructions.
Amendments and Termination
We may agree with the depositary to modify the Deposit Agreement at any time without holders' consent. We undertake to
give holders 30 days' prior notice of any modifications that would materially prejudice any of their substantial rights under
the Deposit Agreement. Holders will be bound by the modifications to the Deposit Agreement if they continue to hold our
ADSs after the modifications to the Deposit Agreement become effective. The Deposit Agreement cannot be amended to
prevent the holders from withdrawing the ordinary shares represented by the ADSs (except as permitted by law).
We have the right to direct the depositary to terminate the Deposit Agreement. Similarly, the depositary may in certain
circumstances on its own initiative terminate the Deposit Agreement. In either case, the depositary must give notice to the
holders at least 30 days before termination. Until termination, holders' rights under the Deposit Agreement will be
unaffected.
After termination, the depositary will continue to collect distributions received (but will not distribute any such property until
holders request the cancellation of their ADSs) and may sell the securities held on deposit. After the sale, the depositary will
hold the proceeds from such sale and any other funds then held for the holders of ADSs in a non-interest bearing account. At
that point, the depositary will have no further obligations to holders other than to account for the funds then held for the
holders of ADSs still outstanding (after deduction of applicable fees, taxes and expenses).
Books of Depositary
The depositary will maintain ADS holder records at its depositary office. Holders may inspect such records at the office
during regular business hours, but solely for the purpose of communicating with other holders in the interest of business
matters relating to the ADSs and the Deposit Agreement.
The depositary will maintain in New York facilities to record and process the issuance, cancellation, combination, split-up
and transfer of ADSs. These facilities may be closed from time to time, to the extent not prohibited by law.
Limitations on Obligations and Liabilities
The Deposit Agreement limits our obligations and the depositary's obligations to the holders:
● we and the depositary are obligated only to take the actions specifically stated in the Deposit Agreement without
●
●
negligence or bad faith;
the depositary disclaims any liability for any failure to carry out voting instructions, for any manner in which a vote
is cast or for the effect of any vote, provided it acts in good faith and in accordance with the terms of the Deposit
Agreement;
the depositary disclaims any liability for any failure to determine the lawfulness or practicality of any action, for the
content of any document forwarded to the holders on our behalf or for the accuracy of any translation of such a
document, for the investment risks associated with investing in ordinary shares, for the validity or worth of the
ordinary shares, for any tax consequences that result from the ownership of ADSs, for the credit-worthiness of any
third party, for allowing any rights to lapse under the terms of the Deposit Agreement, for the timeliness of any of
our notices or for our failure to give notice;
● we and the depositary will not be obligated to perform any act that is inconsistent with the terms of the Deposit
Agreement;
● we and the depositary disclaim any liability if we or the depositary are prevented or forbidden from or subject to
any civil or criminal penalty or restraint on account of, or delayed in, doing or performing any act
or thing required by the terms of the Deposit Agreement, by reason of any provision, any present or future law or
regulation, or by reason of any present or future provision of our articles of association, or any provision of or
governing the securities on deposit, or by reason of any act of God or war or other circumstances beyond our
control;
● we and the depositary disclaim any liability by reason of any exercise of, or failure to exercise, any discretion
provided for in the Deposit Agreement or in our articles of association or in any provisions of or governing the
securities on deposit;
● we and the depositary further disclaim any liability for any action or inaction in reliance on the advice or
information received from legal counsel, accountants, any person presenting ordinary shares for deposit, any holder
of ADSs or authorized representatives thereof, or any other person believed by either of us in good faith to be
competent to give such advice or information;
● we and the depositary also disclaim liability for the inability by a holder to benefit from any distribution, offering,
right or other benefit that is made available to holders of ordinary shares but is not, under the terms of the Deposit
Agreement, made available to the holders;
● we and the depositary may rely without any liability upon any written notice, request or other document believed to
be genuine and to have been signed or presented by the proper parties;
● we and the depositary also disclaim liability for any consequential or punitive damages for any breach of the terms
of the Deposit Agreement; and no disclaimer of any liability under the Securities Act of 1933, as amended, is
intended by any provision of the Deposit Agreement.
Notices and Reports
On or before the first date on which we give notice of any meeting of holders of ordinary shares or other securities on
deposit, or of any adjourned meeting of such holders, or of the taking of any action by such holders other than at a meeting,
or of the taking of any action in respect of any cash or other distributions or the offering of any rights in respect of the
securities on deposit, we shall transmit to the depositary and the custodian a copy of the notice thereof in English but
otherwise in the form given or to be given to the holders of ordinary shares or other securities on deposit. We shall also
furnish to the custodian and the depositary a summary, in English, of any applicable provisions or proposed provisions of our
articles of association that may be relevant or pertain to such notice of meeting or be the subject of a vote thereat.
We will also transmit to the depositary (a) an English version of the other notices, reports and communications which are
made generally available by us to holders of ordinary shares or other securities on deposit, and (b) the English versions of
our annual reports, provided that the requirement in clause (b) shall be deemed completed if we file such annual report with
the Commission on the Electronic Data-Gathering, Analysis, and Retrieval (EDGAR) system. The depositary shall arrange,
at our request and expense, to provide copies thereof to all ADS holders or make such notices, reports and other
communications available to all ADS holders. We have delivered to the depositary and the custodian a copy of our articles of
association, and, promptly upon any amendment thereto or change therein, we shall deliver to the depositary and the
custodian a copy of such amendment thereto or change therein. The depositary may rely upon such copy for all purposes of
the Deposit Agreement.
Fees and Charges
ADS holders will be required to pay the following fees under the terms of the Deposit Agreement:
Service
Fees
(1) Issuance of ADSs upon deposit of shares (excluding
issuances as a result of distributions of shares
described in (4) below)
(2) Cancellation of ADSs
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) issued.
Up to U.S. $5.00 per 100 ADSs (or fraction thereof)
surrendered.
(3) Distribution of cash dividends or other cash
distributions (i.e., sale of rights or other entitlements)
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) held.
(4) Distribution of ADSs pursuant to (i) stock
dividends or other free stock distributions or
(ii) exercise of rights to purchase additional ADSs
(5) Distribution of securities other than ADSs or rights
to purchase additional ADSs (i.e., spin-off shares)
(6) ADS Services
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) held.
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) held.
Up to U.S. $5.00 per 100 ADSs (or fraction thereof) held on
the applicable record date(s) established by the depositary.
ADS holders will also be responsible to pay certain charges such as:
●
●
●
●
●
●
taxes (including applicable interest and penalties) and other governmental charges;
the registration fees as may from time to time be in effect for the registration of ordinary shares on the share register
and applicable to transfers of ordinary shares to or from the name of the custodian, the depositary or any nominees
upon the making of deposits and withdrawals, respectively;
certain cable, telex and facsimile transmission and delivery expenses;
the expenses and charges incurred by the depositary in the conversion of foreign currency;
the fees and expenses incurred by the depositary in connection with compliance with exchange control regulations
and other regulatory requirements applicable to ordinary shares, ADSs and ADRs; and
the fees and expenses incurred by the depositary, the custodian, or any nominee in connection with the servicing or
delivery of deposited property.
In the event of refusal to pay the depositary fees, the depositary may, under the terms of the Deposit Agreement, refuse the
requested service until payment is received or may set off the amount of the depositary fees from any distribution to be made
to the ADS holder.
Note that the fees and charges the holders may be required to pay may vary over time and may be changed by us and by the
depositary.
CERTAIN PORTIONS OF THIS EXHIBIT, MARKED BY BRACKETS AND ASTRISKS [***], WERE
EXCLUDED BECAUSE THOSE PORTIONS ARE BOTH NOT MATERIAL AND WOULD BE
COMPETITIVELY HARMFUL TO THE COMPANY IF PUBLICLY DISCLOSED.
Exhibit 4.9
CONFIDENTIAL
Sent by DHL and anticipated by pdf
voxeljet AG
Paul-Lenz-Straβe la
86316 Friedberg
Germany
To the attention of: Vorstand/Management Board
Luxembourg, 24 March 2021
JUOPS1/NP/ML/mlv 2021-0684
EIB — Confidential
Subject:
Voxeliet (EGFF) SERAPIS (2016-1017), Fl (87310; 88614)
Finance Contract dated 9 November 2017 (as amended from time to time) between the
Borrower and the Bank (the "Finance Contract")
Waiver of a breach under the Finance Contract and Amendment Letter to the Finance
Contract
Dear Sirs,
reference is made to:
(i)
(ii)
(iii)
the Finance Contract as defined above;
the Amendment Letter No. 1 to the Finance Contract entered into between the Bank and the Borrower on
29 May 2020 (the "Amendment Letter");
your e-mail dated 15 March 2021 by which you informed the Bank of not complying with the "Minimum
cash/cash equivalents" Financial Ratio of Schedule K (Financial Covenants) of the Finance Contract
(such non-compliance continuing) as of 31 December 2020 which constitutes:
a.
b.
the non-compliance with the undertaking in Article 7.5 of the Finance Contract with respect to
compliance with the "Minimum cash/cash equivalents" Financial Ratio of Schedule K (Financial
Covenants) of the Finance Contract; and
the non-compliance with the "Minimum cash/cash equivalents" Financial Ratio of Schedule K
(Financial Covenants) of the Finance Contract;
98-100, boulevard Konrad Adenauer L-2950 Luxembourg
+352 4379-1
+352 437704
info@eib.org www.eib.org
2
CERTAIN PORTIONS OF THIS EXHIBIT, MARKED BY BRACKETS AND ASTRISKS [***], WERE
EXCLUDED BECAUSE THOSE PORTIONS ARE BOTH NOT MATERIAL AND WOULD BE
COMPETITIVELY HARMFUL TO THE COMPANY IF PUBLICLY DISCLOSED.
(the foregoing circumstance set out under paragraph (iii) above, the "Event").
1
INTERPRETATION
Unless otherwise defined, capitalised terms used in this letter (the "Letter") have the same meaning attributed to
them in the Finance Contract. References to Articles are references to Articles in the Finance Contract.
In this Letter, "Effective Date" means the date on which the Bank confirms to the Borrower in writing (including
by electronic mail or other electronic means) that the Bank has received in a form and substance satisfactory to it:
(a) a PDF copy of this Letter duly countersigned on behalf of the Borrower, together with a copy of the
relevant authority of signatories;
(b) a copy of any other authorisation or other document, opinion or assurance which the Bank considers
to be necessary or desirable in connection with the entry into and performance of the transaction
contemplated by this Letter; and
(c) an evidence of the payment of the waiver fee set out in Paragraph 7 (Waiver and Amendment Fee)
below.
2
WAIVER OF BREACH WITH RESPECT TO THE EVENT
With effect as of the Effective Date, the Bank waives its rights to demand repayment pursuant to paragraph
9.1(m) of the Finance Contract arising from the breach of Article 7 (Borrower Undertakings, financial covenants
and Representations) and Schedule K (Financial Covenants) of the Finance Contract, with exclusive reference to
the Event.
3
AMENDMENT TO THE FINANCE CONTRACT
As of the Effective Date, Schedule K (Financial Covenants) of the Finance Contract as amended by the
Amendment Letter, shall be replaced by the following:
M L
3
CERTAIN PORTIONS OF THIS EXHIBIT, MARKED BY BRACKETS AND ASTRISKS [***], WERE
EXCLUDED BECAUSE THOSE PORTIONS ARE BOTH NOT MATERIAL AND WOULD BE
COMPETITIVELY HARMFUL TO THE COMPANY IF PUBLICLY DISCLOSED.
"SCHEDULE K
FINANCIAL COVENANTS
1.
Financial covenants
The Borrower shall ensure that the following financial ratios (the "Financial Ratios") will be
maintained on a consolidated basis for the Group:
Total Net Financial Debt to Total Equity
shall not be more than:
Minimum cash/cash equivalents1
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
Relevant Period
during which a
Compliance
Certificate is
submitted in
accordance with
paragraph 2 below:
2020
2021
2022
2023
2024
2025
2.
Financial Testing
The Financial Ratios shall be calculated in accordance with IFRS (as applied by the Borrower on
the date of this Contract and as IFRS is amended from time to time) and tested by reference to the
semi-annual consolidated financial statements delivered in accordance with Paragraph 2(a) of
Schedule I (Information and Visits) as at the end of each Relevant Period, and set out in the
Compliance Certificate delivered to the Bank along with such financial statements."
1 Cash & cash equivalents including liquid financial assets on balance sheet such as investments in short term bond funds which can be
converted into cash at any time, but excluding any restricted cash.
4
CERTAIN PORTIONS OF THIS EXHIBIT, MARKED BY BRACKETS AND ASTRISKS [***], WERE
EXCLUDED BECAUSE THOSE PORTIONS ARE BOTH NOT MATERIAL AND WOULD BE
COMPETITIVELY HARMFUL TO THE COMPANY IF PUBLICLY DISCLOSED.
4
CONTINUING OBLIGATIONS
The Borrower acknowledges and agrees that, other than as expressly set out and agreed hereby, this Letter does
not constitute a waiver granted by the Bank or amendment of any other term or condition of the Finance Contract
and that the waiver constituted under this Letter is limited to the Event. The Bank reserves any and all contractual
and legal rights it has under the Finance Contract and the applicable law.
5
REPRESENTATIONS
By countersigning this Letter the Borrower represents that, with the exception of the Event, all the representations
and warranties which are repeated under and pursuant to Article 7 (Borrower Undertakings, financial covenants
and Representations) of the Finance Contract are correct in all respects (by reference to the facts and
circumstances then existing) on: (i) the date of this Letter; and (ii) the Effective Date.
6
DESIGNATION
In accordance with the Finance Contract, the Borrower and the Bank designate this Letter as a Finance
Document. With effect from the Effective Date, the Finance Contract and this Letter shall be read and construed
as one document.
7
WAIVER AND AMENDMENT FEE
A waiver and amendment fee of EUR 15,000 (fifteen thousand euros) shall be due by the Borrower to the Bank in
connection with the execution of this Letter. This amount shall be paid following the date of the relevant invoice
sent by the Bank to the Borrower, indicating the number of the Bank's invoice as reference.
The waiver fee once paid is non-refundable and non-creditable against any other fees payable to the Bank.
8
GOVERNING LAW AND JURISDICTION
The provisions of Article 10 (Law and Jurisdiction, Miscellaneous) of the Finance Contract shall apply mutatis
mutandis to this Letter.
9
COUNTERPARTS
This letter may be executed in any number of counterparts, all of which taken together shall constitute one and
the same instrument. Each counterpart is an original, but all counterparts shall together constitute one and the
same instrument.
M L
5
CERTAIN PORTIONS OF THIS EXHIBIT, MARKED BY BRACKETS AND ASTRISKS [***], WERE
EXCLUDED BECAUSE THOSE PORTIONS ARE BOTH NOT MATERIAL AND WOULD BE
COMPETITIVELY HARMFUL TO THE COMPANY IF PUBLICLY DISCLOSED.
If you are in agreement with the above, please have two (2) originals of this letter returned to the Bank, to the
attention of Marie Lesschaeve (m.lesschaeve@eib.org), initialled in each page, dated and duly signed in the
name and on behalf of voxeljet AG in its capacity as Borrower, together with each document listed in section 1 (i)
through to (and including) (vii) and a certified copy of the relevant authority of signatories.
Yours faithfully,
EUROPEAN INVESTMENT BANK
Donald Fitzpatrick
Head of Division
Alessandro Thomas
Transaction Management
Officer
Acknowledged and agreed for and on behalf of,
voxeljet AG
as the Borrower
(name and function)
Date:
Acknowledged and agreed for and on behalf of,
voxeljet America Inc
as the Guarantor
(name and function)
Date:
Subsidiaries of voxeljet AG
Business-Entity
voxeljet America Inc.
voxeljet UK Ltd. (in liquidation since December 17, 2020)
voxeljet India Pvt. Ltd.
voxeljet China Co. Ltd.
First consolidation date
February 5, 2014
October 1, 2014
January 21, 2016
April 11, 2016
EXHIBIT 8.1
Shares
100.00%
100.00%
100.00%
70.00%
Exhibit 12.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Dr. Ingo Ederer, certify that:
1.
2.
3.
4.
I have reviewed this Annual Report on Form 20-F of voxeljet AG;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the
period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)
(b)
(c)
(d)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;
Designed such internal control over financial reporting, or cause such internal control over financial reporting to be designed
under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles;
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on
such evaluation; and
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period
covered by the annual report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal
control over financial reporting.
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or other persons performing the
equivalent functions):
(a)
(b)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial
information; and
Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
/s/ DR. INGO EDERER
Dr. Ingo Ederer
Chief Executive Officer
(Principal Executive Officer)
Dated: March 30, 2021
Exhibit 12.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Rudolf Franz, certify that:
1.
2.
3.
4.
I have reviewed this Annual Report on Form 20-F of voxeljet AG;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the
period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)
(b)
(c)
(d)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;
Designed such internal control over financial reporting, or cause such internal control over financial reporting to be designed
under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles;
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on
such evaluation; and
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period
covered by the annual report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal
control over financial reporting.
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or other persons performing the
equivalent functions):
(a)
(b)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial
information; and
Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
/s/ RUDOLF FRANZ
Rudolf Franz
Chief Financial Officer
(Principal Financial Officer)
Dated: March 30, 2021
Exhibit 13.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report on Form 20-F of voxeljet AG (the “Company”) for the year ended December 31, 2020 as filed
with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Dr. Ingo Ederer, Chief Executive Officer of
the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that:
(1)
(2)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended; and
The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company.
/s/ DR. INGO EDERER
Dr. Ingo Ederer
Chief Executive Officer
(Principal Executive Officer)
Dated: March 30, 2021
Exhibit 13.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report on Form 20-F of voxeljet AG (the “Company”) for the year ended December 31, 2020 as filed
with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Rudolf Franz, Chief Financial Officer of the
Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that:
(1)
(2)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended; and
The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company.
/s/ RUDOLF FRANZ
Rudolf Franz
Chief Financial Officer
(Principal Financial Officer)
Dated: March 30, 2021
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-217450) of voxeljet AG
of our report dated March 30, 2021 relating to the financial statements, which appears in this Form 20-F.
Exhibit 15.1
Munich, Germany
March 30, 2021
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
/s/ Katharina Deni
Wirtschaftsprüfer
/s/ Sebastian Stroner
Wirtschaftsprüfer
Consent of Independent Registered Public Accounting Firm
Exhibit 15.2
The Supervisory Board
voxeljet AG:
We consent to the incorporation by reference in the registration statement (No. 333-217450) on Form S-8 of
voxeljet AG (the Company) of our report dated May 7, 2020, with respect to the consolidated statement of
financial position of voxeljet AG as of December 31, 2019, the related consolidated statements of
comprehensive loss, changes in equity, and cash flows for each of the years in the two-year period ended
December 31, 2019, and the related notes, before the effects of the adjustments for the correction of the
errors and retrospective adjustments described in Note 2, which report appears in the December 31, 2020
annual report on Form 20-F of the Company.
Our audit report dated May 7, 2020 contains an explanatory paragraph that states that the Company has
suffered recurring losses and negative cash flows from operations and has breached debt covenants which
raises substantial doubt about its ability to continue as a going concern. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.
Our audit report also refers to a change to the method of accounting for leases as of January 1, 2019 due to
the adoption of IFRS 16 Leases.
/s/ KPMG AG Wirtschaftsprüfungsgesellschaft
Munich, Germany
March 30, 2021