Q2 2024 Nano Dimension Ltd Earnings Call

August 20, 2024

Operator: Good day, ladies and gentlemen.

Good day, ladies and gentlemen, and welcome to another dimension second quarter 'twenty 'twenty Four conference call. My name is K lean in on your operator for today's event.

Operator: Welcome to Nano Dimension's second quarter 2024 conference call.

Operator: My name is Gaylene and I'm your operator for today's event.

Operator: My name is Kayleen, and I'm your operator for today's event.

Yoav Stern: On the call with us today are Yoav Stern, CEO and member of the Board of Directors, Tomer Pinchas, our CFO and COO, and Julien Lederman, VP Corporate Development.

Operator: On the call with us today are Yoav Stern, CEO and member of the Board of Directors, Tomer Pinchas, CFO and COO, and Julien Lederman, VP Corporate Development.

Yagaren: On the call with US today are yeah garen.

Operator: On the call with us today are Yao Stern, CEO and member of the Board of Directors, Tomer Pinchas, CFO and COO, and Julien Lederman, VP Corporate Development.

ill: Ill and member of the board of directors.

Speaker Change: Pension CFO and C O O.

Speaker Change: Julian Letterman VP corporate development.

Operator: Before we begin, may I remind our listeners that certain information provided on this call, may contain forward-looking statements. The safe harbor statement outlined in today's earnings press release also pertains to statements made on this call.

Operator: Before we begin, may I remind our listeners that certain information provided on this call may contain forward-looking statements. As a safe harbor statement outlined in today's earnings press release also pertains to statements made on this call. If you have not received a copy of the press release, please do it in the Investor Relations section of the company's website. A replay of today's call will also be available on the Investor Relations section of the company's website.

Operator: Before we begin, may I remind our listeners that certain information provided on this call may contain forward-looking statements. And the safe harbor statement outlined in today's earnings press release also pertains to statements made on this call.

Speaker Change: Before we begin may I remind you our listeners that certain information provided on this call may contain forward looking statements and the safe Harbor statement outlined in today's earnings press release also pertain to statements made on this call.

Operator: If you have not received a copy of the press release, please view it in the investor relations section of the company's website.

Speaker Change: If you have not received a copy of the press release. Please do it in the Investor Relations section of the company's website.

Operator: If you have not received a copy of the press release, please view it in the investor relations section of the company's website.

Operator: A replay of today's call will also be available on the investor relations section of the company's, website.

Operator: A replay of today's call will also be available on the Investor Relations section of the company's website.

Speaker Change: A replay of today's call will also be available on the Investor Relations section of the company's website.

Operator: Yoav will begin the call with a business update, followed by a question and answer session, at which time the management team will answer questions.

Operator: Yao will begin the call with a business update, followed by a question and answer session, at which time the management team will answer questions.

Operator: Now we'll begin the call with a business update followed by a question and answer session at which time the management team will answer questions.

Speaker Change: Now we'll begin the call with a business update followed by a question and answer session at which time the management team will answer your question.

Operator: If you wish to join the question case, you may press star, then one on your telephone keypad.

Operator: If you wish to join the question queue, you may press star then 1 on your telephone keypad.

Speaker Change: If you wish to join the question can you give me press Star then one on your telephone keypad.

Operator: If you wish to join the question queue, you may press star then one on your telephone keypad.

Yoav Stern: I would now like to turn the call over to Nano Dimension CEO and member of the Board of Directors, Yao Stern. Yao, you may begin.

Operator: I would now like to turn the call over to Nano Dimension's CEO and member of the Board of Directors, Yoav Stern.

Speaker Change: I would now like to turn the call over to now look you mentioned CEO and member of the board of Directors Alistair.

Operator: I would now like to turn the call over to Nano Dimensions CEO and member of the Board of Directors, Yoav Stern.

Yoav Stern: Yoav, you may begin.

Speaker Change: You may begin.

Yoav Stern: The name is Yao, and I hope that people will buy an apple. You know me, but I've been twisted before.

Yoav Stern: The name is Yoav.

Alistair: The name is deal off.

Yoav Stern: And I hope people by now know me, but I've been twisted before.

Speaker Change: I hope what people tell.

Speaker Change: Oh me, but I've been we said before.

Yoav Stern: Yoav, you may begin.

Yoav Stern: Hi everybody.

Yoav Stern: Hi, everybody. Thank you very much for joining us this morning, taking off your time in the beginning of the day. We have gross margins that are up to 45% that just gross margins are similar to last year on a half a year, on a quarter, on a half a year. The app on the quarter is a bit down, but negligible. And more important than everything else to us, because we aim to get positive cash and profits, is that our cash burn was down 54% from 31 dollar cash burn down to 11. And this is a result of a turnaround and reduction of expense plan that we implemented in the first quarter of this year, not because we don't have the cash to fulfill our business plan for the next 4, 3, 4 years, but because we believe a business plan and a business model should lead to positive cash, but as far as possible.

Speaker Change: Hi, everybody.

Yoav Stern: The name is Yoav, and I hope that people by now know me, but I've been twisted before.

Speaker Change: On March.

Yoav Stern: Thank you very much, for joining us this morning, taking off your time in the beginning of the day.

Thinking Walsh: For joining us this morning thinking Walsh diamond at beginning of the day.

Yoav Stern: Hi, everybody.

Yoav Stern: It's a quarter that is a very strong quarter, the best quarter we have ever, even though we had a strong quarter or a similar quarter last year. We are still about 2% above them, and which we are proud about.

Speaker Change: The quarter, but it is a very strong quarter the best quarter.

Yoav Stern: Thank you very much for joining us this morning, taking up your time in the, beginning of the day. This is a very strong quarter, the best quarter we have ever had, even though we had a similar quarter last year.

Speaker Change: However, even though we had a strong quarter or any similar quarter last year.

Speaker Change: They're still up about 2% above them.

Yoav Stern: We are still about 2% above that, which we are proud about.

Which we're proud of bug.

Yoav Stern: We have gross margins, that are up to 45% that are just at gross margins, similar to last year, on a half a year, on quarterly. On a half a year, they're up, on a quarterly they're a bit down, but negligible.

Speaker Change: We have a gross margin.

Speaker Change: It's up to 45% the.

Speaker Change: Adjusted gross margin.

Speaker Change: Okay.

Speaker Change: Lots of last year.

Speaker Change: Although on the Hefei here or the quarterly.

Speaker Change: Well figure that out on a quarterly is a bit down.

Yoav Stern: We have gross margins up to 45%.

Yoav Stern: The adjusted gross margins are similar to last year, on a half a year, on a quarterly. On a half a year, they're up.

Yoav Stern: And more important than everything else to us, because we're aiming at positive cash and profits, is that our cash burn was down. Sixty-four percent, from $31 million cash burn down to $11.

Speaker Change: Negligible and.

Speaker Change: More important than everything else to us because we were aiming at positive cash.

Yoav Stern: On a quarterly, they're a bit down, but negligible. More important than everything else to us, because we're aiming at positive cash and profits, is that our cash burn was down 54% from $31 million cash burn down to $11 million.

Speaker Change: Is there a cash burden.

Speaker Change: Don.

Yoav Stern: This is a result of a turnaround and, reduction of expense plan that we implemented in the first quarter of this year, not because we don't have the cash to fulfill our business plan for the next four, three, four years, but because we believe a business plan and a business model should lead to positive cash burn as fast as possible.

Speaker Change: 64%.

Speaker Change: $71 million cash burn down to 11.

Yoav Stern: And this is a.

Speaker Change: And this.

This is a.

Yoav Stern: The results of, turnaround and reduction of expense, that we implemented in the first quarter of this year, not because we don't have the cash to fulfill our business plan for the next 4, 3, 4 years, but because we believe a business plan and a business model should lead to positive cash flow as fast as possible, and we are 64% of the way there.

Speaker Change: The result of a turnaround and a reduction of expense.

Speaker Change: Blend that we implemented in the first quarter of this year not because of me.

Speaker Change: I don't have the cash to fulfill our business plan for the next for three or four years.

Speaker Change: But because we believe a businessman and a business model should lead to positive cash flow as fast as possible and we are 64% of the way though.

Yoav Stern: We are 64% of the way down.

Yoav Stern: And we are 64% on the way there.

Yoav Stern: We also have some business updates, which somewhat repeating what I've said, what we announced before, but are very important. You know, announced that acquisition of the rest of the metal. Innovative Electronics products, an integrated inspection system, and the digital printing partnership between GIS, Nesco Graphics, and Theory we announced before, and it's very important as we integrate all our product lines into the wider industry.

Yoav Stern: We also have some business updates which somewhat repeating what I've said, what we announced before but are very important, announced the acquisition of a dust-off metal.

Speaker Change: We also have some business updates, which somewhat repeatable repeating what I've said, what we announced before by law.

Yoav Stern: We also have some business updates, which somewhat repeat what I've said, what we announced before, but are very important. We announced the acquisition of Bristol Metal.

Jordan.

Announced.

Jordan: The acquisition of the desktop metal.

Yoav Stern: Innovative Electronics Products and Integrated Inspection System and the Digital Printing, Partnership between GIS and ESCO Graphics and FIRI we announced before and it's very important as we integrate all our product lines into the wider industry.

Yoav Stern: Innovative Electronics Products, and Integrated Inspection System, and the Digital Printing Partnership between GIS and ESCO Graphics and FIRI we announced before and it's very important as we integrate all our product lines into the wider industry.

Jordan: Innovative.

And the ZIP electronics products.

Jordan: An integrated inspection system.

Speaker Change: The digital printing partnership between GI, Yes, and yes.

Jordan: So graphics.

Speaker Change: In theory.

We announced before and that's very very important as we integrate all of our product lines into the wider industry.

Yoav Stern: If you watch now, the customer highlight...

Yoav Stern: If you watch now, the customer highlights slides; he's the next one. I kind of brought up here just a couple of names from two of our product lines. The reason why many, many more names is we are not allowed to, because many of our customers are sensitive to publishing their names, how they are in the space industry, how they're in the fence industry, some of them are in other industries like computer, which are major players in the computer industry, computer industry, but they don't want the name to appear. So, I can just tell you that we, beyond these two new customers that are here that can be stored in this quarter, we have already close to 10, between 6 to 10 Western armies, which are customer files, between 5 to 7, three letters agency, secret service agencies, three letters agencies, they call them, around the world, only Western, but the customers of us, we have some serious, from the largest difference contractor around the world, probably 4 or 5 of them, our customers, not just think about hand sold from Europe, from Germany, which is our joint venture partner in the natural investment, so we are slowly appearing now on the forefront of every industrial, chosen group of customers.

Speaker Change: If you want to know the customer highlights.

Yoav Stern: If you watch now the customer highlight slides, which is the next one, I kind of brought up, here just a couple of names from two of our product lines.

Yoav Stern: Slides is the next one.

Speaker Change: <unk> is the next one.

Yoav Stern: I kind of brought up here just a couple of names from two of our product lines.

Speaker Change: I kind of brought up here just a couple of names from two of our product lines. The reason why I didn't bring in many many more names as we are not allowed to because many of our customers are sensitive to publishing but some of them are in the space industry. So all of them in the defense industry. Some of them are in other industries.

Yoav Stern: The reason why we bring many, many more names is we are not allowed to, because many of our customers are sensitive to publishing their names.

Yoav Stern: The reason why we bring many, many more names is we are not allowed to because many of our, customers are sensitive to publishing their names.

Yoav Stern: Some of them are in the space industry, some of them in the defense industry, some of them, are in other industries like computer, which are major players in the computer industry, but they don't want their name to appear.

Yoav Stern: Some of them are.

Yoav Stern: Some of them are in other industries like, computer, which are major players in the computer industries, computer industry, but they don't want their name to appear.

Speaker Change: Like compute.

Speaker Change: Computer, which are major players in the computer.

Industries.

Speaker Change: Computer industry, but they don't want their name to appear.

Yoav Stern: So I can just tell you that we, beyond these two new customers today here that came this quarter.

Yoav Stern: So I can just tell you that beyond these two new customers that came this quarter, we have, already close to ten, between six to ten Western Armies, which are customers of ours, between five to seven three-letter agencies, secret service agencies, three-letter agencies as they call them around the world, only Western, that are customers of ours.

Speaker Change: So I can just tell you that we beyond this two new customers. This year that came this quarter.

Yoav Stern: We have already close to 10.

Speaker Change: We have already close to 10.

Speaker Change: The game is Japan.

Yoav Stern: Western Armies, which are customers for us between five to seven, three letters agencies, secret service agencies, three letters agencies as they call them, around the world, only Western, that the customers of ours, And we have, from the largest defense contractor around the world, probably four or five of them, customers, not to speak about hands-on, from Europe, from Germany, which is our joint venture partner in mutual investment.

Speaker Change: Wisdom armies, which customer follows between five to seven.

Speaker Change: It's really those agencies they could service agencies those agencies as they call them around the world only western.

Speaker Change: I feel comfortable I suppose.

Speaker Change: Yeah, we have.

Yoav Stern: We have some serious, from the largest defense contractor around the world, probably four, or five of them, are our customers, not to speak about Hensel from Europe, from Germany, which is our joint venture partner and mutual investment.

Speaker Change: So I'm serious.

Speaker Change: From the largest defense contractor around the world, probably four or five of them.

Speaker Change: Oh.

Speaker Change: Our.

Speaker Change: Customers not just thinking about tenfold.

Speaker Change: From Europe from Germany, which is our joint venture partner in initial investment.

Yoav Stern: So.

Yoav Stern: So we are slowly, slowly appearing now on the forefront of every industrial chosen group, of customers.

Speaker Change: So we.

Yoav Stern: We are slowly, slowly appearing now on the forefront of every industrial revolution, chosen group of customers.

Speaker Change: We are slowly slowly appearing now on the forefront of every industrial.

Speaker Change: Uh huh.

Chosen group of customers.

Yoav Stern: If you're looking at the slide of creating an efficient industry 4.0, this is a very important slide.

Yoav Stern: If you're looking at the slide of creating an efficient industry 4.0, this is a very, important slide, not so much because of the data that appears there, which is the data of our company over the last, between three years to last year, but because of the title.

Speaker Change: If you're looking at the slide upgrading inefficient industry point of view. This is a very important slide not so much.

Yoav Stern: Not so much.., because of the data that appears there, which is the data of our company over the last, between three years to last year, but because of the time...

Speaker Change: Because of the data and it appears there are no which isn't there.

Speaker Change: And what was the last between three years to launch.

Speaker Change: Because on the title.

Yoav Stern: Efficient industry 4.0, ladies and gentlemen, we are not in the desktop, sorry, in the, editing manufacturing industry.

Yoav Stern: Efficient Industry 4.0, ladies and gentlemen.

Speaker Change: [laughter] industry full point of view, ladies and gentlemen, we unlocked.

Yoav Stern: We are not in the desktop, sorry, in the energy manufacturing industry.

Speaker Change: There's still sort of in the additive manufacturing industry.

Yoav Stern: We are aiming, and we will be, and we'll show you that, to be in an intensity 4.0.

Yoav Stern: We are aiming, and we will be, and we'll show you that, to be in an industry 4.0.

We are aiming and he will be and we'll show you that to be in an empty 4.0.

Yoav Stern: The reason is we believe editing manufacturing is not an industry.

Yoav Stern: The reason is we believe additive manufacturing is not an industry, additive manufacturing is a pile of technology.

Speaker Change: The reason is we believe it is the manufacturing is not an industry that doesn't mean, it's interesting as a pile of technologies.

Yoav Stern: Editing manufacturing is a pile of technologies.

Yoav Stern: The industry we are in is an industry where we manufacture machines which are digital, and converting the regular and traditional industry into a digital industry 4.0. As an example, if you take a very advanced CNC machine, computer numerical control, it, used to be numerical control. Before it was called computer numerical control.

Yoav Stern: The industry we are in is an industry where we manufacture machines which are digital and converting the regular and traditional industry into a digital industry 4.0. As an example, if you take a very advanced CNC machine, Computer Numerical Control, it used to be Numerical Control, before it was called Computer Numerical Control.

Yoav Stern: The industry we are in is an industry where we manufacture machines with digital and converting the regular and traditional industry into a digital industry 4.0. As an example, if you take a very advanced CNC machine, computer and numerical control, it used to be numerical control before it was called computer. This is also a digital machine for the industry and it also edge device, and it's also creating an end result for that, except if we bring to reduction the inductive technology, not additive technology, but in our vision, this is the part of one industry, and as we grow and expand.

Speaker Change: Interestingly, we are in <unk>.

Speaker Change: Our industry will need money fiction machines, which are digital.

Speaker Change: Converting the irregular and traditional industry into a digital industry for point of view as an example, if you think of very advanced CNC machine computer on the numerical control it used to be numerical control before there was called computer control. It's also a digital machine for the industry.

Yoav Stern: These are also digital machines for the industry.

Speaker Change: And it's also edge device and its also.

Yoav Stern: And it's also an edge device, and it's also creating an edge end-result product, except you bring it to a reduction, reductive technology, not additive technology.

Yoav Stern: It's also an edge device, and it's also creating an end result product, except you, bring it to a reduction, reductive technology, not additive technology.

Speaker Change: Creating and Ed.

Results for them, except in bringing total reduction adaptive technology.

Speaker Change: Technology, but in our vision. This is the bulk of one industry and as we grow and expand.

Yoav Stern: But in our vision, this is a part of one industry, and as we grow and expand, you will see that we will start to be a player not only in editing manufacturing technologies.

Yoav Stern: You will see that we will start to be a player not only in editing manufacturing technologies. That's very, very important. One of the reasons for that is the editing manufacturing industry, and again, I shouldn't call it an industry; it's called a pile of technologies, is considered to sell about $15 million a year of products and machines. But out of the $15 million, probably 12 to 13 are people who are using the machines and selling products by using those technologies. Three to four billion dollars is the people who manufacturing the machines, not only manufacturing during the R&D and developing the technologies and manufacturing machines.

Speaker Change: You will see that we will start to play out not only in additive manufacturing technology, that's very very important one.

Yoav Stern: That's very, very important.

Yoav Stern: One of the reasons for that is, The LED manufacturing industry is again, I shouldn't call it an industry, I should call it a pile of technologies, is considered to sell about 15 billion dollars a year, products and machines.

Speaker Change: One of the reasons for that.

Yoav Stern: But out of the $15 billion, probably $12 to $13 billion are people who are using the machines, and selling products by using those technologies.

Speaker Change: They didn't do much better than the industry, because again I shouldn't call. It an industry that's quote a pile of them.

Yoav Stern: One of the reasons for that is the editing manufacturing industry, is again, I shouldn't call it an industry, I should call it a pile of technologies, is considered to sell about $15 billion a year of products and machines.

Yoav Stern: But out of the $15 billion, probably $12 to $13 billion are people who are using the machines and selling products by using those technologies.

Speaker Change: It was considered up to sell about $50 billion a year.

Speaker Change: Of products and machines.

Speaker Change: But out of the fixed gonna be endorsed probably 12 to yourself game are people who are using the machines.

Speaker Change: And selling products by using those technologies.

Yoav Stern: $3 to $4 billion is the people who are manufacturing the machines, not only manufacturing, doing the R&D and developing the technologies and manufacturing machines.

Yoav Stern: $3 to $4 billion is the people who are manufacturing, the machines, not only manufacturing, doing the R&D and developing the technologies and manufacturing machines.

Speaker Change: $3 billion to $4 billion is the people who manufacturing.

Speaker Change: The machines, not only manufacturing doing the R&D and developing the technologies and manufacturing machines.

Yoav Stern: So two-thirds of the market or 75% of the market are people who do not invest in R&D and do not build machines and do not manufacture materials.

Yoav Stern: So two thirds of the market, or 75% of the market, are people who do not invest in R&D and do not build machines and do not manufacture materials. And sure enough, look at the economy here. The people who manufacture products using our machines are making money, and 95% of the people who manufacture and develop the machines and the materials are losing money. That's not a normal circumstance, not a normal situation; it cannot hold water.

Yoav Stern: So two-thirds of the market, or 75% of the market, are people who do not invest in R&D.

Speaker Change: So two thirds of the market so 75% of the market of people, who do not invest in R&D.

Yoav Stern: Thank you very much.

Speaker Change: Bill machines, or they're not manufacturing materials.

Yoav Stern: And sure enough, look at the dichotomy here.

Yoav Stern: And sure enough, look at the dichotomy here. The people who are manufacturing products using our machines are making money, and 95% of the people who manufacture and develop the machines and the materials are losing money.

Speaker Change: And sure enough Luca the dichotomy here.

Luca: People, who are manufacturing products using our machines are making money.

Yoav Stern: The people who are manufacturing products using, our machines are making money and 95% of the people who manufacture and develop the machines and the materials are losing money.

Luca: And 95% of the people, who have money fixture and developing the machines and they brought in the materials are losing money that's not a normal circumstance northern normal situations cannot hold water.

Yoav Stern: That's not a normal circumstance, not a normal situation, cannot hold water.

Yoav Stern: That's not a normal circumstance, not a normal situation, it cannot hold water.

Yoav Stern: There is an R portion of the industry, the machine developers and makers to consolidate.

Yoav Stern: There is an outpost of the industry, the machine, the developers, and they get us to consolidate. And you can get an example if you look years ago into the aviation industry, when there were many manufacturers of aircraft, speaking about commercial aircraft, and the people who were flying there. The analogy is the manufacture and the aircrafts are us, the machine manufacturers, and the airlines that fly them are the users of manufacture products. And the airline products before regulation was profitable, and the people who manufactured the products actually enabled them for losing money. And there were many of them.

Yoav Stern: That's the reason our portion of the industry, the machine developers and makers, has to consolidate.

Luca: Our portion of the industry, the machine developers and make that as the controller.

Yoav Stern: And you can get an example if you look years ago into the aviation industry, when there were many manufacturers of aircrafts, I'm speaking about commercial aircrafts, and the people who are flying them.

Yoav Stern: And you can get an example if you look years ago into the aviation industry when there were many manufacturers of aircrafts, I'm speaking about commercial aircrafts, and the people who are flying them.

Luca: And you can get as an example, if you look years ago into the aviation industry. When there were many many fixtures those aircrafts I'm speaking about commercial aircrafts.

Yoav Stern: The analogy is the manufacturer of the aircrafts are us, the machine manufacturers, and the airlines that fly them are the users who manufacture products.

Luca: And the people who are flying that the analogy is the manufacturer and their profits are up.

Yoav Stern: The analogy is the manufacturer of the aircraft are us, the machine manufacturers, and the airlines that fly them are the users of manufactured products, and the LA products before regulation was profitable.

Luca: That machine manufacturers and the airlines that fly them they use them. So many fixture products.

Yoav Stern: And the airline products before regulation was profitable, and the people who manufactured the products actually enabled them were losing money.

Luca: And the products before regulation was both of them.

Yoav Stern: And the people who manufactured the projects that actually enabled them were losing money. And there were many of them.

Luca: And the people who manufacture them perfect. That's actually enabled that we're losing money.

Yoav Stern: And there were many of them.

Speaker Change: There aren't many of them who remembers the name called that enrolled members Douglas at Mcdonald's It makes them today.

Yoav Stern: Who remembers the name Comet and who remembers Douglas and McDonald and McDonald-Douglas?

Yoav Stern: Who remembers the name, comment, and who remembers Douglas and McDonald and McDonald Douglas? Today, everybody consolidated, and in the commercial airline industry, you have two manufacturers, Airbus and Boeing, and that would enable them to become profitable because they realize early in the game all the risks of the players could not survive on their own. That is what is going to happen in our industry. I'm not sure it will be reduced down to two, I think, but the ending up more, but definitely not 350 companies manufacturing machines that everybody, and even one of them, 95% at least, not making money.

Yoav Stern: Then who remembers the name Comet and who remembers Douglas and, McDonald and McDonald and Douglas?

Yoav Stern: Today everybody consolidated and in the commercial airline industry you have two manufacturers, Airbus and Boeing.

Today, everybody consulting division and in the commercial.

Yoav Stern: Today, everybody consolidated, and in the commercial airline industry, you have two manufacturers, Airbus and Boeing, and that would enable them to become profitable because they realized early in the game, all the rest of the players could not survive on their own.

Speaker Change: Airline industry.

Speaker Change: Two manufacturers Airbus and Boeing.

Yoav Stern: And that would enable them to become profitable because they realized early in the game all the rest of the players could not survive on their own.

Speaker Change: And that's what enabled them to become profitable because they realized early in the game all the rest of the players cannot survive on the on this is what's going to happen in our industry I'm not sure. It will be reduced down to two I think there'll be anything more but definitely not 350 companies manufacturing machine.

Yoav Stern: That is what's going to happen in our industry.

Yoav Stern: That is what is going to happen in our industry.

Yoav Stern: I'm not sure it will be reduced down to two.

Yoav Stern: I think they'll be ending up more, but definitely not 350 companies manufacturing machines that everybody and every one of them, 95%, is not making money.

Speaker Change: Machines that everybody in every one of them.

Speaker Change: 95% at least not making money.

Yoav Stern: The next slide, which is the acquiring of Best of Metal slide, is one of our first steps. It's not our first step because we've consolidated before. We did seven acquisitions before Best of Metal, but those were smaller acquisitions, and we waited for a long time for the big ones to come because prices were totally out of whack and totally unacceptable. Best of Metal, if you read their proxy statements, going for a shoulder's hold for this deal, described the process that we went with them in acquisition. We gave them nine proposals over the last two years to acquire them.

Yoav Stern: The next slide, which is the acquiring of Desktop Metal slide, is one of our first steps.

Speaker Change: The next slide.

Speaker Change: The acquiring of desktop metal slide.

Yoav Stern: I'm not sure it will be reduced down to two.

Speaker Change: It is.

Speaker Change: One of our first it's not the first step because we've constructed before we.

Yoav Stern: It's not our first step because we consolidated before. We did seven acquisitions before Desktop Metal, but those were smaller acquisitions, and we waited for a long time for the big ones to come because prices were totally out of whack and totally unacceptable.

Speaker Change: We did similar conditions before there's some adult but those were smaller acquisitions and we waited for a long time for the big wants to come because prices were totally out of whack and totally unacceptable.

Yoav Stern: I think it will be ending up more.

Yoav Stern: But definitely not 350 companies manufacturing machines that everybody and every one of them...

Yoav Stern: Desktop Metal, if you read their proxy statement, going for a shareholder's vote for this deal, described the process that we went with them in acquisition. We gave them nine proposals over the last two years to acquire them. Ladies and gentlemen, nine proposals. The last proposal, which is the one they took, is the lowest proposal of all their lines.

Speaker Change:

Speaker Change: If you read the proxy statement.

Yoav Stern: Think about it.

Speaker Change: Going forward our shareholders vote for this to describe the process that we went with them.

Speaker Change: Acquisition.

Speaker Change: Gave the nine proposals over the last two years still collect them.

Yoav Stern: 95% of you is not making money.

Yoav Stern: Ladies and gentlemen, nine proposals. The last proposal, which is the one they took, is the lowest proposal of all the line. Think about it. Traditionally, when you bid for a house and you don't get it, you increase your price; you increase your price until you get it. Well, here's the opposite. We reduce the price and every new proposal that we make because the market shrunk in valuations because the companies did not make money and were not growing at the right place. So we waited for this moment in time to start the acquisition of the larger companies.

Speaker Change: Ladies and gentlemen, nine proposals.

Speaker Change: The last proposal, which is the ones they took.

Is the lowest proposals all done I think.

Yoav Stern: Traditionally, when you bid for a house and you don't get it, you increase your price, you increase your price until you get it.

Speaker Change: Think about it.

Speaker Change: Traditionally when you bid for a house and you don't get it you increase your price increase the price until you get it well he was the opposite where you reduce the price.

Yoav Stern: Well, here is the opposite.

Speaker Change: Every new holes that we make because of the market.

Yoav Stern: We reduce the price on every new proposal that we make, because the market shrunk in valuations because the companies did not make money and were not growing at the right pace.

Speaker Change: Strength in the valuations because the company did not make money and we're not growing at the right place. So.

Yoav Stern: So we waited for this moment in time to start the acquisitions of the larger companies.

So we waited for this moment in time to stop the acquisitions of the larger companies.

Yoav Stern: The next slide, which is the acquiring of desktop metal slide, is one of our first steps.

Yoav Stern: The next slide is a map or a graph that shows you whether we believe we are positioned, once we close this acquisition with Desktop Metal.

Yoav Stern: The next slide and a map or a graph that shows you where we believe we are positioned or will be positioned once we close this acquisition with Best of Metal. And ladies and gentlemen, we didn't finish the acquisition trail. Even with depth of metal, it takes us from being a 60 million dollars, 60, 70 million dollars to be made into our company to be a 200 million dollars overnight. And it positions up in the high growth potential with the broadest technology portfolio. But all these are just sub-level drivers that has to drive a business model into profitability.

Yoav Stern: It's not our first step because we consulted before.

Speaker Change: The next.

Speaker Change: And is it a mentor a graph that shows you where do we believe we are positioned well be positioned once we close this acquisition with desktop metal.

Yoav Stern: And ladies and gentlemen, we didn't finish the acquisition trail. Even with Desktop Metal, it takes us from being a $60 million, $60 million, $70 million company, to being $230 million overnight.

Speaker Change: And.

Yoav Stern: We did seven acquisitions before, but those were smaller acquisitions, and we waited for a long time for the big ones to come because prices were totally out of whack and totally unacceptable.

Speaker Change: Ladies and gentlemen, we didn't finish the acquisition trail.

Speaker Change: Yeah.

Speaker Change: Even.

It takes us from being a $60 million 67th demand almost 2 million barrels compared to being a $250 million overnight.

Speaker Change: And it positions us in the high growth potential and we're the broadest.

Yoav Stern: And it positions us in the high growth potential and with the broadest technology portfolio.

Speaker Change: Technology portfolio.

Yoav Stern: But all these are just sub-level drivers that has to drive a business model into profitability.

Speaker Change: But all of these are just.

Speaker Change: Some little drivers that is to drive it.

Speaker Change: This model into profitability.

Yoav Stern: The next slide discusses how little bit point of interest, how we develop a premium high margin portfolio of additive zero machine and manufacturing materials. And as I mentioned earlier, you'll see us venturing out into Digital Industry 4.0. It's not necessarily going to be only AM. So AM is just one of the tools for Digital Industry 4.0. And you see here, we believe software and AI is the major driver after materials in this industry. And we're focusing on the efforts on that.

Yoav Stern: The next slide discusses how a little bit points of interest, how we develop a premium high margin portfolio of additive material machines, additive manufacturing materials.

Speaker Change: The next slide.

Speaker Change: Discuss its home.

Speaker Change: It'll be points of interest how can we develop a premium high margin portfolio.

Speaker Change: Do you have a scant ended the manufacturing materials and then as I mentioned earlier, you'll see us venturing out into digital.

Yoav Stern: And as I mentioned earlier, UCS venturing out into digital industry 4.0.

Speaker Change: Industry 4.0, it's not necessarily going to be only a M. So anyway.

Yoav Stern: It's not necessarily going to be only AM.

Yoav Stern: So AM is just one of the tools for digital industry 4.0.

Speaker Change: It's just one of the tools for the industry for point of view.

Yoav Stern: And you see here, we believe software and AI is the major driver after materials in this industry.

Speaker Change: And you see here.

Speaker Change: We believe software and AI is the major driver.

Speaker Change: After materials in this industry and we are focusing our R&D efforts on that.

Yoav Stern: And we're focusing our R&D efforts on that.

Yoav Stern: Next slide discusses the reason actually if you wish that we believe that the merger with Best of Metal is such a good transaction for us. You see in the middle, you see the overlap of distribution go to market. The verticals that we all go after are 80% overlapping. And there are a little bit non-overlapping, which is basically an electronic business. And they are then in concern for that business. Otherwise, it's overlapping. You see in the right side a list of impressive customers. By the way, many of them are customers of both of us. And on the left, it gives you a little bit of a taste of the kind of solution and variety of solution we apply toward the segment where we can get into mass manufacturing and mass production.

Yoav Stern: The next slide discusses the reason, actually, if you wish, that we believe that the merger with Desktop Metal is such a good transaction for us.

Yoav Stern: If you read their proxy statement, going for a shareholder's vote for this deal, describe the process that we went with them in acquisition. We gave them nine proposals over the last two years to acquire them. Ladies and gentlemen, nine proposals.

Speaker Change: Next slide discusses the reason actually.

Yoav Stern: The last proposal, which is the one they took, is the lowest proposals of all the lines.

Yoav Stern: Think about it.

Yoav Stern: Traditionally, when you bid for a house and you don't get it, you increase your price, you increase your price until you get it.

Yoav Stern: Well, here's the opposite.

Speaker Change: If you wish.

Yoav Stern: We reduce the price, and every new proposal that we make because the market, Shrunk in valuations because the companies did not make money and were not growing at the right pace.

Yoav Stern: So we waited for this moment in time to start the acquisitions of the larger company.

Speaker Change: We believe that the merger with <unk>.

Speaker Change: Yeah.

Speaker Change: That's the middle.

Such a good transaction for us.

Yoav Stern: The next slide is a map or a graph that shows you whether we believe we are positioned or will be positioned once we close this acquisition with Desktop Metal.

Yoav Stern: You see in the middle, you see the overlap of distribution go to market.

Speaker Change: You seem to in the Middle you see the overlap of distribution go to market.

Yoav Stern: The verticals that we all go after are 80% overlapping.

Yoav Stern: Ladies and gentlemen, we didn't finish the acquisition trail, and...

Speaker Change: Vertical that we all go after are 80% overlapping.

Yoav Stern: And there are a little bit non-overlapping, which is our PCB and electronic business, and their dental and consumer product business.

Speaker Change: And a little bit.

Speaker Change: The non overlapping which is obviously being an electronics business unbearable, Enzo and consumer products business was the races overlapping you see on the right side at least the impressive customers by the way many of them are customers for both of us.

Yoav Stern: Otherwise, it's overlapping.

Yoav Stern: You see on the right side a list of impressive customers.

Yoav Stern: By the way, many of them are customers of both of us.

Speaker Change: And on the left it gives you a little bit of a taste of the kind of solution and variety of solution, we apply toward that.

Yoav Stern: And on the left, it gives you a little bit of a taste of the kind of solution, and variety of solution we apply toward the segment where we can get into mass manufacturing and mass production. I should have said the mass is a little bit misleading. It's not massing so much as manufacturing 40 million remote-controlled TV pieces a year.

Speaker Change: Towards the segments, where we can get into mass manufacturing and mass production I shouldn't say that.

Yoav Stern: And I should have said, the mass is a little bit misleading. It's not massing so much as manufacturing 40 million remote control TV pieces a year. We're not going to get there. We're talking about high. Hi Nikyum, Midium Volume, and Hi Mount of Designs. So, where any industry that needs digital industry, that needs to change a lot to their product lines and their product lines are not much touches in millions, but they are manufacturing in a lot of variety of designs. That's where we will play a major role; it's called high mix low volume.

Speaker Change: Must be the little bit misleading it's not.

Speaker Change: So much as well.

Manufacturing 14 million remote control T V.

Speaker Change: The BCC here, we're not going to get there, but talking about high.

Yoav Stern: We're not going to get there.

Yoav Stern: We're talking about high.., and others.

Yoav Stern: We have a high mix, low volume, medium volume, and high amount of designs.

Yeah, Hi, lithium lithium volume and high Mount designs.

Yoav Stern: So any industry that needs, digital industry, that needs to change a lot of their product, lines, and their product lines are not manufactured in millions, but they are manufactured in a lot of variety of designs, that's where we will play a major role, it's called high mix, low volume.

Speaker Change: So what I think industry index.

Speaker Change: Digital industry that needs to change or logs in their product lines.

Speaker Change: And they put a nice enough manufactures and millions, but they only factoring in a lot of variety of designers, that's where we would play.

Speaker Change: The major all of its called high mix low volume.

Yoav Stern: Lastly, some acquisition details, we published it before, but just to remind you, it was, this quarter, so it's worthwhile mentioning, acquired 100% of desktop metal, it's an old cash transaction, people ask us, why won't you pay with shares?

Yoav Stern: Lastly, some acquisition in details; we published it before, but just to remind you, it was this quarter, so it's worth what I'm mentioning. A quiet 100% of the dust of metal. It's all cash transactions. People ask us, why would you pay with shares? The answer is to one; our share is undervalued. By far, I'm not talking about undervalued being 2.2 to 2.8 to 3.5. We believe it's undervalued in hundreds of percent, and using the share when it's undervalued, it's obviously diluted to our shareholders, and moreover it is also a fact. I'm sure you remember, if we bought our shares ourselves, because they were undervalued, just because it made sense to have less shares, and then Annex per share, when Annex came up, and more value per share.

Speaker Change: Lastly, stomach position in detail and we publish it before but just to remind you. It was this quarter. So it's worthwhile mentioning.

Yoav Stern: Even the depth of metal, it takes us from being $60 million, $60-$70 million to $230 million overnight, and it positions up in the high growth potential and with the broadest...

Speaker Change: Acquiring 100% of just admit though it's the old Guestrooms actually people asked us why do it once you pay was shifts.

Yoav Stern: Technology Portfolio.

Yoav Stern: The answer is two, one, our share is undervalued, by far, I'm not talking about undervalued, being 2.2, to 2.8, to 3.5, we believe it's undervalued in hundreds of percent, and using the share when it's undervalued, it's obviously dilutive to our shoulders, and moreover, it is also a fact, I'm sure you remember, that we bought our shares ourselves, because they were undervalued, just because it made sense, to have less shares, and then more earnings per share, when earnings come up, and more value per share, and the reason why I think you don't see it yet in the share value, is because the whole corner of this industry, or the whole corner that's called this industry, is getting very bad attitude from the market, because of the rest of the companies that reduced their values dramatically, and spent all their cash, that's the reason we're buying them, but it will change.

Speaker Change: The answer is too.

Yoav Stern: But all these are just.., sub-level drivers that has to drive a business model into profitability.

Speaker Change: One thing I'll share is undervalued.

Yoav Stern: The next slide discusses how.., a little bit points of interest how we develop a premium, high margin portfolio of additive material machine, additive manufacturing materials, and as I mentioned earlier, UCS venturing out into digital, and others.

Speaker Change: By far not talking about enterprise being two two to 2.8 to 3.5, we believe it's undervalued.

Speaker Change: In hundreds of percent.

Speaker Change: And using the Sherwin, it's undervalued, it's obviously.

Yoav Stern: Next slide discusses the reason, actually, if you wish, that we believe that the merger with, … … … … … … The End, The Best of Metal is such a good transaction for us.

Speaker Change: Dilutive to our shareholders and Moreover.

Yoav Stern: You see in the middle, you see the overlap of distribution go to market.

Yoav Stern: The verticals that we all go after are 80% overlapping.

Yoav Stern: And there are a little bit non-overlapping, which is our PCB and electronic business, and they are a dental and consumer product business.

Speaker Change: It is also a sense I'm sure you remember that we bought those shares ourselves because they were undervalued just because it made sense to them.

Yoav Stern: All the rest is overlapping.

Yoav Stern: You see on the right side a list of impressive customers.

Speaker Change: That's true and then more earnings per share, one time up and more value per share.

Yoav Stern: The reason why I think you don't see it yet in the share value is because the whole corner of this industry, or the whole corner that's called this industry, is getting a very bad attitude from the market because of the rest of the companies that reduced their values dramatically and spent all their cash. That's the reason we're buying them. But it will change. A total consideration between Annex 3580 depends on certain formula. It's expected to close in the end of the year, and the closing condition is mostly finishing the regulatory approval process with the American authorities, and getting a shareholders vote, positive shareholders vote, by just a matter of shareholders.

Speaker Change: And the reason why I think I don't think I don't see it yet in the share value is because the whole corner of this industry or the whole corner. That's called this industry is getting very bad.

Speaker Change: The attitude from the market because of the rest of the company's debt.

Speaker Change: It reduced our values dramatic can't spend all the cash that's the reason we're behind them.

Speaker Change: But it will change.

Speaker Change: Total considerations that you have and how many 35 out of the Navy.

Yoav Stern: Total considerations between 135 and 180, depends on certain formula, it's expected, to close in the end of the year, and the closing condition is mostly finishing the regulatory approval process, with the American authorities, and getting a shareholders vote, positive shareholders vote, by desktop metal shareholders, and it's in process right now.

It depends on certainly.

Speaker Change: So the formula.

Speaker Change: It is expected to close in the end of the year.

Speaker Change: The closing condition is mostly a finishing the regulatory approval process.

Operator: Good day, ladies and gentlemen.

Speaker Change: With the American authorities and.

Operator: Welcome to Nano Dimension's second quarter 2024 conference call.

Kayleen: Good day, ladies and gentlemen. Welcome to Nano Dimension's second quarter 2024 conference call. My name is Kayleen and I'm your operator for today's event. On the call with us today are Yao Stern, CEO and member of the board of directors, Tomer Pinchas, CFO and COO, and Julien Lederman VP Corporate Development. Before we begin, may I remind our listeners that certain information provided on this call may contain forward-looking statements. As a safe harbor statement outlined in today's earnings press release also pertains to statements made on this call.

Speaker Change: Getting a shareholders' vote positive show this vote by a desktop metal shareholders and it's in process right now.

Operator: My name is Kayleen and I'm your operator for today's event.

Yoav Stern: It's in process right now.

Operator: On the call with us today are Yao Stern, CEO and member of the board of directors, Tomer Pinchas, CFO and COO, and Julien Lederman VP Corporate Development.

Operator: This is the point where we'll apply to you to ask questions, and hopefully we'll be able, to answer them, operator please, operator, pardon me, we'll now begin the question and answer session, to ask a question, you may press star, then one, on your telephone keypad, if you're using a speakerphone, please pick up the handset, before pressing any keys, to withdraw your question, please press star, then two, at this time, we will pause momentarily, to assemble our roster, the first question is from Troy Jensen, with counterfeit Gerald, please go ahead.

Yoav Stern: This is the point where we'd like you to ask questions, and hopefully we'll be able to answer them.

Yoav Stern: By the way, many of them are customers of both of us.

Speaker Change: This is the point, where we will.

Yoav Stern: And on the left, it gives you a little bit of a taste of the kind of solution and variety of solution we apply toward the.., to all these segments where we can get into mass manufacturing and mass production.

Speaker Change: I'd like to you to ask questions.

Hopefully, we'll be able to answer them.

Yoav Stern: The mass is a little bit misleading.

Yoav Stern: Operator, please. Operator? Pardon me.

Speaker Change: Operator please.

Speaker Change: Operator.

Speaker Change: Yeah.

Yoav Stern: It's not massing so much as manufacturing 40 million remote controlled TV.

Speaker Change: Pardon me, we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.

Operator: We'll now begin the question and answer session. To ask a question, you are pressed star, then one on your telephone keypad. If you're using a speaker phone, please pick up the handset before pressing any keys. To withdraw your question, please press star, then two.

Yoav Stern: We're not going to get there, a high medium, medium volume and high amount of design.

Yoav Stern: So, any industry that needs, digital industry, that needs to change a lot of their product lines, and their product lines are not manufactured in millions, but they're manufacturing in a lot of variety of designs, that's where we will play a major role.

Operator: If you have not received a copy of the press release, please do it in the investor relations section of the company's website. A replay of today's call will also be available on the investor relations section of the company's website.

Kayleen: If you have not received a copy of the press release, please do it in the investor relations section of the company's website. A replay of today's call will also be available on the investor relations section of the company's website. Yao will begin the call with a business update followed by a question and answer session at which time the management team will answer questions. If you wish to join the question case, you may press star then one on your telephone keypad.

Speaker Change: Youre using a speakerphone please pick up the handset before pressing any kids to withdraw your question. Please press Star then two.

Operator: At this time, we will pause momentarily to assemble our roster.

Yoav Stern: It's called high mix, low volume.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Operator: Yao will begin the call with a business update followed by a question and answer session at which time the management team will answer questions.

Troy Jensen: The first question is from Troy Jensen with Counter-Fix Gerald. Please go ahead. Hey, gentlemen, thanks for taking my questions here. I'll just go up to you. Good morning, good afternoon. It's felt like the message is quarter was much more, you know, robotics and AI and software driven than it has been in the past. Is that correct? Did I say that there was a kind of notable cone change and kind of the direction of the consolidation that you guys want to pursue? Yeah, we believe that what will fill all of our machines, and I'm talking now about all, including this dog metal and others that we are negotiating and talking about M&A, is the software.

Yoav Stern: Lastly, some acquisition details.

Speaker Change: The first question is from Troy Jensen with Cantor Fitzgerald. Please go ahead.

Operator: If you wish to join the question case, you may press star then one on your telephone keypad.

Troy Jensen: Hey, gentlemen, thanks for taking my questions here, I guess, you know, I'll try to do a, Good morning, good afternoon.

Yoav Stern: We published it before, but just to remind you, it was this quarter, so it's worthwhile mentioning. Acquired 100% of desktop metal.

Troy Jensen: Hey, gentlemen, thanks for taking my questions here I guess you're right.

Yoav Stern: I would now like to turn the call over to Nano Dimension CEO and member of the board of directors, Yao Stern.

Yoav Stern: I would now like to turn the call over to Nano Dimension CEO and member of the board of directors, Yao Stern. Yao, you may begin.

Troy Jensen: It felt like the message this quarter was much more robotics and AI and software driven than it has been in the past.

Yoav Stern: It's an old cash transaction.

Speaker Change: Good morning, good afternoon.

Yoav Stern: People ask us, why won't you pay with shares?

Yoav Stern: The answer is two.

Speaker Change: It felt like the message this quarter was much more.

Yoav Stern: One, our share is undervalued.

Yoav Stern: By far, I'm not talking about undervalued being 2.2 to 2.8 to 3.5, we believe it's undervalued, in hundreds of percent.

Yoav Stern: Yao, you may begin.

Yoav Stern: And using the share when it's undervalued, it's obviously.

Troy Jensen: Is that correct?

Speaker Change: Robotics, and AI and software driven than it has been in the past is that correct did I say that there was a.

Yoav Stern: The name is Yao, and I hope that people will buy an apple, you know me, but I've been twisted before.

Yoav Stern: The name is Yao, and I hope that people will buy an apple, you know me, but I've been twisted before. Hi, everybody. Thank you very much for joining us this morning, taking off your time in the beginning of the day. We have gross margins that are up to 45% that just gross margins are similar to last year on a half a year, on a quarter, on a half a year, the app on the quarter is a bit down, but negligible.

Yoav Stern: Did I say that there was a kind of notable tone change in kind of the direction of the consolidation that you guys want to pursue?

Speaker Change: Notable tone change in Canada.

Speaker Change: Kind of the direction that the consolidation that you guys want to pursue.

Yoav Stern: Yeah, we believe that what will sell all of our machines, and I'm talking now about all, including Desktop Metal and others that we are negotiating and talking about M&A, is the software.

Yoav Stern: Hi, everybody.

Yoav Stern: Thank you very much for joining us this morning, taking off your time in the beginning of the day.

Speaker Change: Yeah, we believe that the what we'll sell all of our machines and I'm talking now about all including desktop metal and others that we are negotiating and talking about the M&A.

Yoav Stern: And the analogy, if you wish, Troy, is think about you developing your product, which is the paper, the analysis with the spreadsheets and with the word.

Speaker Change: He is the software and the analogy if you wish toy is think about U S.

Yoav Stern: And the analogy, if you wish, Troy, is think about you developing your product, which is the paper, the analysis with the spreadsheets and with the word. You're totally focused on the software that enables you to do that. I don't think you know the name of the printer you have in your office. The software is driving your tool to manufacture your product, not the hardware.

Speaker Change: Developing your.

Yoav Stern: We have gross margins that are up to 45% that just gross margins are similar to last year on a half a year, on a quarter, on a half a year, the app on the quarter is a bit down, but negligible.

Speaker Change: Product, which is the paper.

Speaker Change: A lot of analysis.

Speaker Change: With spreadsheets and with the work that you have.

Troy Jensen: You're totally focused on the software that enables you to do that.

Speaker Change: Totally focus on the software that enables you to do that but I don't think you can know the name of the painful your husband your office.

Troy Jensen: I don't think you know the name of the printer you have in your office.

The software is driving your own to the manufacturer of product not the hardware.

Troy Jensen: The software is driving your tool to manufacture your product, not the hardware.

Yoav Stern: And more important than everything else to us, because we aim to get positive cash and profits is that our cash burn was down 54% from 31 dollar cash burn down to 11.

Yoav Stern: And more important than everything else to us, because we aim to get positive cash and profits is that our cash burn was down 54% from 31 dollar cash burn down to 11. And this is a result of a turnaround and reduction of expense plan that we implemented in the first quarter of this year, not because we don't have the cash to fulfill our business plan for the next 4, 3, 4 years, but because we believe a business plan and a business model should lead to positive cash, but as far as possible. And we are 64% on the way there.

Yoav Stern: Yep, all right, understood. I kind of agreed; I get it. And then how about just like your thoughts on the growth and additive versus growth in kind of robotics market? Think about in the next 12 months and 20 years because robotics, the area that's driving growth and consumer less than additive or the extra color. I believe that in robotics, automation and what we call Industry 4.0 and be electronic editing electronics or even the other, I'm sorry, just a second. We believe the growth there is not dramatic because it's published in the series, but the growth exists especially toward the big generation of it.

Speaker Change: Yep Alright understood.

Yoav Stern: Yep.

Speaker Change: And kind of agreed I get it and.

Yoav Stern: All right.

Speaker Change: And how about just like your thoughts on growth in additive versus growth and kind of your robotics markets Goodbye.

Troy Jensen: Understood.

Speaker Change: In the next 12 months in front of US it's robotics the area, that's driving growth and assuming a lesson as it is right.

Troy Jensen: I kind of agreed.

Yoav Stern: And this is a result of a turnaround and reduction of expense plan that we implemented in the first quarter of this year, not because we don't have the cash to fulfill our business plan for the next 4, 3, 4 years, but because we believe a business plan and a business model should lead to positive cash, but as far as possible.

Speaker Change: Any extra color would be great.

Speaker Change: I I believe that.

Troy Jensen: I get it.

Speaker Change: In robotics automation, and what would be called industry 4.0 in deed.

Speaker Change: The electronic editing electronics or even be I'll go ahead I'm sorry.

Speaker Change: Being the other.

Yoav Stern: And we are 64% on the way there.

Speaker Change: Segment.

Speaker Change: We believe the growth there.

Yoav Stern: We also have some business updates, which somewhat repeating what I've said, what we announced before, but are very important.

Speaker Change: Not dramatic because it's established industries, but the growth exists, especially towards the digitization of it so it's 10% 15% a year.

Yoav Stern: So it's 10%, 15% a year. It's much more published, and we like it that way.

Yoav Stern: You know, announced that acquisition of the rest of the metal.

Yoav Stern: You know, announced that acquisition of the rest of the metal. Innovative Electronics products, an integrated inspection system, and the digital printing partnership between GIS, Nesco graphics, and theory we announced before, and it's very important as we integrate all our product lines into the wider industry. If you watch now, the customer highlights slides, he's the next one. I kind of brought up here just a couple of names from two of our product lines.

Speaker Change: It's muffled only established and will likely fluctuate the growth in additive manufacturing.

Troy Jensen: And then how about just like your thoughts on then growth and additive, versus growth in kind of the robotics market?

Yoav Stern: The growth and additive manufacturing is now and should be specific to segments of the additive manufacturing. We believe segments of metal additive manufacturing will see much higher growth once the fitting formula for materials and materials for the printing and material for the hand results products are working together well, and we already see it happening. And secondly is what I mentioned here before, a drive, a very serious drive of growth in the additive manufacturing section of digital industry 4.0 is the software and the application that is enabling people to seamlessly design and send into printing without having to deal with different standards and every company has its own design tool and the design tools do not create another company that needs to change and it changed historically in the software industry for instance for PCs.

Yoav Stern: Innovative Electronics products, an integrated inspection system, and the digital printing partnership between GIS, Nesco graphics, and theory we announced before, and it's very important as we integrate all our product lines into the wider industry.

Speaker Change: It is now and it wouldn't be and shouldn't be specific to segments of the manufacturing. We believe segment of metal editing fiction will see much higher growth.

Speaker Change: Once the <unk>.

Speaker Change: Fitting and formula for materials and <unk>.

The materials from the printing and material for the end results product are working together, well and we already see it happening and secondly is what I mentioned here before a drive a very serious drive our growth in the manufacturing section of the store.

Yoav Stern: If you watch now, the customer highlights slides, he's the next one.

Yoav Stern: I kind of brought up here just a couple of names from two of our product lines.

Speaker Change: Industry 4.0 is the software.

Yoav Stern: The reason why many, many more names is we are not allowed to, because many of our customers are sensitive to publishing their names, how they are in the space industry, how they're in the fence industry, some of them are in other industries like computer, which are major players in the computer industry, computer industry, but they don't want the name to appear. So, I can just tell you that we, beyond these two new customers that are here that can be stored in this quarter, we have already close to 10, between 6 to 10 Western armies, which are customer files, between 5 to 7, three letters agency, secret service agencies, three letters agencies, they call them, around the world, only Western, but the customers of us, we have some serious, from the largest difference contractor around the world, probably 4 or 5 of them, our customers, not just think about hand sold from Europe, from Germany, which is our joint venture partner in the natural investment, so we are slowly appearing now on the forefront of every industrial, chosen group of customers.

Speaker Change: And the application.

Speaker Change: This is enabling people to seamlessly design and send into printing.

Speaker Change: Without having to deal with different Sunbelt and every company has its own designed to and the design tools.

Speaker Change: Not another company that needs to change any chance to historically in the software industry for instance for D. C. It's all changed and it will change here.

Yoav Stern: So, I can just tell you that we, beyond these two new customers that are here that can be stored in this quarter, we have already close to 10, between 6 to 10 Western armies, which are customer files, between 5 to 7, three letters agency, secret service agencies, three letters agencies, they call them, around the world, only Western, but the customers of us, we have some serious, from the largest difference contractor around the world, probably 4 or 5 of them, our customers, not just think about hand sold from Europe, from Germany, which is our joint venture partner in the natural investment, so we are slowly appearing now on the forefront of every industrial, chosen group of customers.

Yoav Stern: It's all changed, and it will change here. And drive growth.

Speaker Change: And Brian maybe it yeah.

Yoav Stern: Maybe if you think about the next four months, you think you're going to just be more focused on the integration of Desktop Metal or you think we'll hear a couple more, you know, more acquisition tuck-ins. And I know you don't know for sure, but just I think in the next 12 to 24 months, we will be focusing on both integration of the Digital Metal and adding more acquisitions within the limit of our management capability to swallow it because one of the things you have to remember, and just to make sure you are not becoming a bill junky, is the acquisition is exciting, but the merger is what makes it profitable.

Speaker Change: Understood.

Troy Jensen: Think about in the next 12 months in front of you, is robotics the area that's driving growth and consuming less in additive?

Brian: And maybe if you think about the next 12 months do you think you're going to just be more focused on the integration of desktop metal or do you think we'll hear a couple Oh, you know more acquisition tuck ins and I know you don't know for sure but just.

Speaker Change: Just some thoughts.

Yoav Stern: Thank you, Dr. Childress, and moreover...

Yoav Stern: It is also a fact, I'm sure you remember, that we bought our shares ourselves because they were undervalued, just because it made sense to have less shares and then more earnings per share when earnings come up and more value per share.

Speaker Change: I think in the next.

Yoav Stern: And the reason why I think you don't see it yet in the share value is because the whole corner of this industry, or the whole corner that's called this industry, is getting very bad.

Speaker Change: Well, it's the 24 months.

Speaker Change: Focusing on.

Speaker Change: Both integration.

Speaker Change: The there's no mental and adding.

Speaker Change: More acquisitions.

Speaker Change: Within the limit of our management capabilities too.

Speaker Change: Swallow it because one of the things you have to remember and to just to make sure you're not becoming a good chunky is the acquisition is exciting but the merger is what makes it profitable so when carefully negotiating with three or four other companies what I would like to do all of them again dependent.

Troy Jensen: So we are carefully negotiating with three or four other companies. We are not going to do all of them, again, depending on the size. If they are very small and we just acquire them because of specific, okay, but if they are larger and the size of the digital metal, we will be very careful. But we are talking to some of them. Understood, guys. Thanks for all the time, and I am looking forward to it. Thank you, Troy.

Speaker Change: I think they're very small and we just acquired them because of specific.

Yoav Stern: If you're looking in the slide of creating an efficient industry 4.0, this is a very important slide, not so much because of the data that appears there, which is a data of our company over the last, between 3 years to last year, but because of the title, efficient industry 4.0, 90s and young men, we are not in the desktop industry, we are aiming, and we will be, and we'll show you that, to be in an industry 4.0, the reason is we believe that the manufacturing is not an industry, it is an manufacturing is a pile of technologies. The industry we are in is an industry where we manufacture machines with digital and converting the regular and traditional industry into a digital industry 4.0, as an example, if you take a very advanced CNC machine, computer and numerical control, it used to be numerical control before it was called computer, this is also a digital machine for the industry and it also edge device, and it's also creating an end result for that, except if we bring to reduction the inductive technology, not additive technology, but in our vision, this is the part of one industry, and as we grow and expand.

Speaker Change: But these are larger on the size of this deal.

Got it.

We'll be very careful what we're talking to some of them.

Speaker Change: Understood guys. Thanks for all the time and good luck.

John: Thank you John.

Katherine Thompson: The next question is from Katherine Thomas with Edison. Please go ahead. Hi Yoav, it's actually Katherine Thompson. The first question, I believe that you've got teams already working with Desktop Metal to pull together integration plans for post completion. Is there anything you can say about that process and how that's been going? Yeah, the process is called, we are calling it PMI post merger integration, and the way we run this process is we have teams who know both companies working on a daily basis, both meeting in the same location, and both headquarters are in Boston. So it's going to be strictly straightforward to merge it, but the teams are working together on the teams and on all management levels to plan. Why do I say to plan? Because formally we can start to run the combined company one day after the closing of the transaction.

Yoav Stern: Thank you very much.

John: The next question is from Catherine Thomas with Edison. Please go ahead.

Yoav Stern: Reduced their values dramatically and spent all their cash.

Yoav Stern: That's the reason we're buying them, but it will change.

John: Hi, it's actually Catherine Thompson.

Yoav Stern: A total consideration is between $135,000 and $180,000, it depends on a certain formula. It's expected to close at the end of the year. And the closing condition is mostly finishing the regulatory approval process, with the American authorities and getting a positive shareholders vote by Desktop Metal shareholders and it's in process right now.

Yoav Stern: I believe that in robotics automation and what we call Industry 4.0 and be it, additive electronics or even be it other – I'm sorry.

Catherine Thompson: The first question I believe that you'll you've got teams already working with desktop metal to pull to get the integration plan. Suppose completion is there anything you can say about that process and how that's been going.

Yoav Stern: This is the point where we'll, uh.., like to you to ask questions and hopefully we'll be able to answer.

Yoav Stern: Just a second.

Yoav Stern: In other segments, we believe the growth there is not dramatic because it's, established industries, but the growth exists, especially toward the digitalization of it. So it's 10 percent, 15 percent a year.

Operator: Operator, please.

Yoav Stern: The industry we are in is an industry where we manufacture machines with digital and converting the regular and traditional industry into a digital industry 4.0, as an example, if you take a very advanced CNC machine, computer and numerical control, it used to be numerical control before it was called computer, this is also a digital machine for the industry and it also edge device, and it's also creating an end result for that, except if we bring to reduction the inductive technology, not additive technology, but in our vision, this is the part of one industry, and as we grow and expand.

Operator: Operator.

Yoav Stern: It's much more established and we like it that way.

Speaker Change: The process is called or we're calling it PMI post merger integration.

Yoav Stern: The growth in additive manufacturing is now and would be and should be specific to, segments of the additive manufacturing. We believe segments of metal additive manufacturing will see much higher growth once the fitting formula for materials and materials for the printing and material for the end result product are working together well and we already see it happening.

Yoav Stern: And secondly is what I mentioned here before, a drive, a very serious drive of growth in the additive manufacturing section of Digital Industry 4.0 is the software and the application that is enabling people to seamlessly design and send into printing without having to deal with different standards and every company has its own design tool and the design tools do not fit another company.

Operator: Pardon me.

Troy Jensen: That needs to change and it changed historically in the software industry, for instance, for PCs.

Speaker Change: And the way we run these processes, we have teams from both companies working on it.

Troy Jensen: It all changed and it will change here.

Speaker Change: Daily basis.

Troy Jensen: Maybe if you think about the next 12 months, do you think you're going to just be more focused on, the integration of desktop metal or do you think we'll hear a couple more acquisition tuck-ins?

Speaker Change: Both meeting in the same location are both headquarter site in Boston, So there's going to be fairly straightforward to imagine.

Yoav Stern: I know you don't know for sure, but just...

Speaker Change: The teams are working together.

Yoav Stern: I think in the next 12 to 24 months, we will be focusing on both integration of the instrumental, and adding more acquisitions within the limit of our management capability to swallow it because one of the things you have to remember, and just to make sure you're not becoming a build junkie, is the acquisition is exciting, but the merger is what makes it profitable.

Speaker Change: Redeemed and then all management levels too.

Speaker Change: Two plan why do I say to plant because formerly we can start to run the combined company.

Speaker Change: One day I have to ask.

Speaker Change: Sorry, one day after the closing of the transaction.

Yoav Stern: So before that, we cannot run Desktop Metal, Desktop Metal by a management team but I want to tell you something: we discovered, as we need to know each other, that the management team in Desktop Metal is excellent. They are going to be integrated with our management team and they're going to make decisions together starting the day after the day of closing. Meanwhile, the PMI, the post-merger integration process, is a planning process, very, very detailed, so when we hit the ground upon closing, we hit the ground running and it works very, very well with between the two teams. Great, and then kind of on a similar topic, you mentioned the timetable to get to completion.

Speaker Change: So before that we cannot run.

The there's no metal that this doesn't have to.

Speaker Change: Management team, but I want to tell us something we discovered as we can get to know each other that the management team in desktop metal is excellent.

Yoav Stern: You will see that we will start to be a player not only in editing manufacturing technologies, that's very, very important.

Yoav Stern: You will see that we will start to be a player not only in editing manufacturing technologies, that's very, very important. One of the reasons for that is the editing manufacturing industry, and again, I shouldn't call it an industry, it's called a pile of technologies, is considered to sell about $15 million a year of products and machines. But out of the $15 million, probably 12 to 13, are people who are using the machines and selling products by using those technologies.

Yoav Stern: One of the reasons for that is the editing manufacturing industry, and again, I shouldn't call it an industry, it's called a pile of technologies, is considered to sell about $15 million a year of products and machines.

Speaker Change: They tend to be integrated with our management team.

Speaker Change: And they're willing to make the decisions together starting the day after the day of closing and Meanwhile, the PMI the merger integration process.

Yoav Stern: But out of the $15 million, probably 12 to 13, are people who are using the machines and selling products by using those technologies.

Speaker Change: Is the planning process very very detailed so when do we hit the ground upon closing will hit the ground running and it works very very well with between the two teams.

Yoav Stern: Three to four billion dollars is the people who manufacturing the machines, not only manufacturing during the R&D and developing the technologies and manufacturing machines.

Yoav Stern: Three to four billion dollars is the people who manufacturing the machines, not only manufacturing during the R&D and developing the technologies and manufacturing machines. So two thirds of the market, or 75% of the market, are people who do not invest in R&D and do not build machines and do not manufacture materials. And sure enough, look at the economy here. The people who manufacturing products using our machines are making money, and 95% of the people who manufacture and develop the machines and the materials are losing money.

Speaker Change: Great and then kind of on a similar topic and you mentioned the timetable to get to completion could you just give us a little bit more detail on kind of the rough timing for the different regulatory approvals.

Yoav Stern: Could you just give us a little bit more detail on kind of the rough tidings for the different regulatory approvals? Yeah, there's two regulatory approvals, traditionally that are taking some time. One is Cocholino, which is the regulatory agency that makes sure that any manager you have a monopoly is created; that's not the issue between us and the metal. We don't have, while we do, I'm not happy. Overliving products, so there's no non-competing products, so there's no issue. We believe it's more formality. And then the CFUS, which is the agency that looks at every merger and acquisition nowadays between an American company and a foreign company to make sure that American industries are not taken over by unfriendly, quality national industries from all kinds of places, there's not including us, we're from Israel, which is very close and very friendly, so we believe this will be passing as well, without major issues.

Yoav Stern: So two thirds of the market, or 75% of the market, are people who do not invest in R&D and do not build machines and do not manufacture materials.

Speaker Change: Yeah.

Speaker Change: There's two military approvals.

Speaker Change: Traditionally that are taking some time one is a cultural D&O.

Yoav Stern: And sure enough, look at the economy here.

Speaker Change: Which is the regulatory agencies to make sure that any manager you don't have it.

Yoav Stern: The people who manufacturing products using our machines are making money, and 95% of the people who manufacture and develop the machines and the materials are losing money.

Speaker Change: Monopoly is Korea.

Speaker Change: She'll be quinoxaline myself.

Speaker Change: We don't have what do we do it.

Yoav Stern: That's not a normal circumstance, not a normal situation, it cannot hold water.

Yoav Stern: That's not a normal circumstance, not a normal situation, it cannot hold water. There is an outpost of the industry, the machine, the developers, and they get us to consolidate. And you can get an example if you look years ago into the aviation industry, when there were many manufacturers of aircrafts, speaking about commercial aircrafts, and the people who were flying there, the analogy is the manufacture and the aircrafts are us, the machine manufacturers, and the airlines that fly them are the users of manufacture products.

Speaker Change: [noise] overlapping products.

Yoav Stern: There is an outpost of the industry, the machine, the developers, and they get us to consolidate.

Speaker Change: There's no noncompete and products. So there's no issue. It's more we believe it's more of a formality.

Yoav Stern: And you can get an example if you look years ago into the aviation industry, when there were many manufacturers of aircrafts, speaking about commercial aircrafts, and the people who were flying there, the analogy is the manufacture and the aircrafts are us, the machine manufacturers, and the airlines that fly them are the users of manufacture products.

Speaker Change: And then the surface, which is the the agency debt.

Speaker Change: Look at every merger and acquisition Nowadays between American company and a foreign company.

Speaker Change: To make sure the American industries are not taken over by.

Speaker Change: Friendly call it National industries from all the kind of places, there's nothing holding us away from Israel, just very close and Verde.

Yoav Stern: And the airline products before regulation was profitable, and the people who manufactured the products actually enabled them for losing money.

Yoav Stern: And the airline products before regulation was profitable, and the people who manufactured the products actually enabled them for losing money. And there were many of them. Who remembers the name, comment, and who remembers Douglas and McDonald and McDonald Douglas? Today, everybody consolidated and in the commercial airline industry, you have two manufacturers, Airbus and Boeing, and that would enable them to become profitable, because they realize early in the game all the risks of the players could not survive on the own.

Speaker Change: So we've been we believe this will be busing as well with no major without major issues.

Yoav Stern: And there were many of them.

Yoav Stern: Who remembers the name, comment, and who remembers Douglas and McDonald and McDonald Douglas?

Yoav Stern: Today, everybody consolidated and in the commercial airline industry, you have two manufacturers, Airbus and Boeing, and that would enable them to become profitable, because they realize early in the game all the risks of the players could not survive on the own.

Katherine Thompson: Okay, and then one final question: I see that you've walked back, I think, about $8 million worth of shares in the quarter. Are you still continuing to buy back shares for the rest of the year? We have an additional 100, close to 150 million dollars allocated and approved by the court in Israel and by our board to buy more shares. We're buying or not buying based on a decision that is partly connected to the price of the share, partly connected to not having infinite information because that prevents us from buying when there's certain important events happening and the public doesn't know about it. So, there's many variables affecting the buying and selling, sorry, the buying of shares, but we do have a location and we do have the permission to buy, and we'll do it as we see fit in the next few quarters.

Okay and then one final question I see that you bought back I think about $8 million less its shares in the quarter are you still continuing to buy back shares.

Speaker Change: For the rest of the year.

Speaker Change: We have an additional.

Speaker Change: Close to $150 million.

Speaker Change: Oh, located and approved by the court in Israel and buy a boat.

Yoav Stern: That is what is going to happen in our industry.

Yoav Stern: That is what is going to happen in our industry. I'm not sure it will be reduced down to two, I think, but the ending up more, but definitely not 350 companies manufacturing machines that everybody, and even one of them, 95% at least, not making money.

Yoav Stern: I'm not sure it will be reduced down to two, I think, but the ending up more, but definitely not 350 companies manufacturing machines that everybody, and even one of them, 95% at least, not making money.

Speaker Change: More shows well.

Speaker Change: We're buying we're buying or not buying based on a decision.

Speaker Change: It is probably connected to the price of the share broadly connected to not having inside information because that that prevents us from buying windows certain important events happening in the public doesn't know about it so there's many variables affecting their buying and selling and buying of shares.

Yoav Stern: The next slide, which is the acquiring of Best of Metal slide, is one of our first steps.

Yoav Stern: The next slide, which is the acquiring of Best of Metal slide, is one of our first steps. It's not our first step because we've consolidated before. We did seven acquisitions before Best of Metal, but those were smaller acquisitions, and we waited for a long time for the big ones to come, because prices were totally out of whack and totally unacceptable. Best of Metal, if you read their proxy statements, going for a shoulder's hold for this deal, described the process that we went with them in acquisition.

Yoav Stern: It's not our first step because we've consolidated before. We did seven acquisitions before Best of Metal, but those were smaller acquisitions, and we waited for a long time for the big ones to come, because prices were totally out of whack and totally unacceptable.

Speaker Change: But we do have a location and we don't have the permission to buy and we will do it as we see fit in the next few quarters.

Yoav Stern: Best of Metal, if you read their proxy statements, going for a shoulder's hold for this deal, described the process that we went with them in acquisition.

Speaker Change: Right. Okay. Thank you.

Katherine Thompson: Great, okay, thank you. Thank you very much.

Speaker Change: Thank you very much.

Operator: Once again, if you have a question, please press star, then one.

Operator: We'll now begin the question and answer session.

Speaker Change: Once again, if you have a question. Please press Star then one.

Solzelman: The next question is from Solzelman with Jerry Care; please go ahead. Good morning, you're up. Good morning to you. Good afternoon. So again, thanks for the great presentation. I actually just came back myself in Boston, so it would have been great to see you guys. But all good. We'd love to see what you guys are doing, and I trust that you guys are working diligently on that post-merger. I thank you for sharing that timeline for the integration with this stuff, and you have my support, rooting for your smooth process and success. I do have two questions on this, slightly different, but along the same track.

Operator: To ask a question, you may press star, then one on your telephone keypad.

The next question is from.

Operator: If you're using a speakerphone, please pick up the handset before pressing any keys.

Yoav Stern: We gave them nine proposals over the last two years to acquire them.

Yoav Stern: We gave them nine proposals over the last two years to acquire them. Ladies and gentlemen, nine proposals. The last proposal, which is the one they took, is the lowest proposals of all the line. Think about it. Traditionally, when you bid for a house and you don't get it, you increase your price, you increase your price until you get it. Well, here's the opposite. We reduce the price and every new proposal that we make because the market shrunk in valuations because the companies did not make money and were not growing at the right place. So we waited for this moment in time to start the acquisition of the larger companies.

Selman.

Speaker Change: Larry Kerr. Please go ahead.

Yoav Stern: Ladies and gentlemen, nine proposals.

Operator: To withdraw your question, please press star, then two.

Speaker Change: Good morning.

Larry Kerr: Good morning theories morning afternoon at so again, thanks for the great presentation actually just came back and myself from Boston. So it would have been great to see you guys, but I'm all good we'd love to see what you guys are doing.

Yoav Stern: The last proposal, which is the one they took, is the lowest proposals of all the line.

Yoav Stern: So we're carefully negotiating with three or four other companies.

Yoav Stern: We're not going to do all of them, again, depending on their size.

Yoav Stern: Think about it.

Yoav Stern: If they're very small and we just acquired them because of specifics, okay.

Yoav Stern: Traditionally, when you bid for a house and you don't get it, you increase your price, you increase your price until you get it.

Yoav Stern: But if they're larger and the size of the desktop metal, we'll be very careful, but we're talking to some of them.

Troy Jensen: Understood, guys.

And I Trust that you guys are working diligently on that post merger I. Thank you for sharing that timeline for the integration with desktop and you have my support.

Troy Jensen: Thanks for all the time.

Yoav Stern: Well, here's the opposite.

Yoav Stern: We reduce the price and every new proposal that we make because the market shrunk in valuations because the companies did not make money and were not growing at the right place.

Smith: Rooting for your Smith, the smooth process and success I do have two questions on this.

Speaker Change #102: Slightly different but along the same track first one is you you touched on it at all.

Solzelman: First one is, you touched on it that over the last, I guess, local in the last couple of years that you put in the various bids, the valuations of 3D companies haven't been pushed lower in the general market bait, and that's according to my humble opinion, it's based on the market opinion that they're disbelief of any meaningful recovery. So, in your opinion, what kind of gross margin would indicate dynamic change in the business and provide sustainability for the future of the 3D industry? I mean, just looking at the most recent press release, you know, you have it currently at a margin of 45%; would you be happy with a number of 60% and that's the dynamic change, or would you feel that it would have to be a much stronger robust number to indicate that question number one?

Yoav Stern: So we waited for this moment in time to start the acquisition of the larger companies.

Speaker Change #103: For the last Oh, I guess, we'll call. It the last couple of years that you put in the various bids.

Yoav Stern: The next slide and a map or a graph that shows you where we believe we are positioned or will be positioned once we close this acquisition with best of metal.

Yoav Stern: The next slide and a map or a graph that shows you where we believe we are positioned or will be positioned once we close this acquisition with best of metal. And ladies and gentlemen, we didn't finish the acquisition trail. Even with depth of metal, it takes us from being a 60 million dollars, 60, 70 million dollars to be made into our company to be a 200 million dollars overnight. And it positions up in the high growth potential with the broadest technology portfolio.

Speaker Change #104: Devaluation of used to be the companies haven't been quite slower in the general market a bit and that's according to my humble opinion, it's based on really the market opinion that the.

Yoav Stern: And ladies and gentlemen, we didn't finish the acquisition trail.

Speaker Change #105: Their disbelief of any meaningful recovery. So in your opinion, what kind of gross margin would indicate that any change in the business and provides sustainability for the future of the three D industry.

Yoav Stern: Even with depth of metal, it takes us from being a 60 million dollars, 60, 70 million dollars to be made into our company to be a 200 million dollars overnight.

Speaker Change #106: Just looking at the most recent press release, Yeah, you have it currently at a margin of 45% would you be happy with a number of 60 per cent and.

Yoav Stern: And it positions up in the high growth potential with the broadest technology portfolio.

But that's that's the dynamic change.

Yoav Stern: But all these are just sub-level drivers that has to drive a business model into profitability.

Yoav Stern: But all these are just sub-level drivers that has to drive a business model into profitability. The next slide discusses how little bit point of interest, how we develop a premium high margin portfolio of additive zero machine and manufacturing materials. And as I mentioned earlier, you'll see us venturing out into digital industry 4.0. It's not necessarily going to be only AM. So AM is just one of the tools for digital industry 4.0. And you see here, we believe software and AI is the major driver after materials in this industry. And we're focusing on the efforts on that.

Speaker Change #107: Or would you would you feel that it would have to be a much stronger robust number to indicate that that's question number. One question number two is how long the lines like you had said, we're not going into M&A as per se just to have a do the acquisition as part of integration to make sure that you're buying companies that you can actually make money with.

Solzelman: Question number two is, along the lines, like you said, we're not going into M&A's per se just to have, do the acquisition as part of the integration, make sure that you're buying companies that you can actually make money with. It looks alike and then vacated the Poison Telegations on Stratuses. Is that an indication that there's no longer an interest in pursuing that Stratuses by out? And if that's the case, why not officially end the $16.5 dollar offer from last year, as it's just causing the overing in the stock?

Yoav Stern: The next slide discusses how little bit point of interest, how we develop a premium high margin portfolio of additive zero machine and manufacturing materials.

Speaker Change #108: And it looks like and then vacated the poison pill litigation on Stratasys is that an indication that there's no longer an interest in pursuing that strategy to buy out.

Yoav Stern: And as I mentioned earlier, you'll see us venturing out into digital industry 4.0.

Speaker Change #109: And if that's the case why not officially M D.

Yoav Stern: It's not necessarily going to be only AM.

Yoav Stern: So AM is just one of the tools for digital industry 4.0.

Speaker Change #110: The 16 and a half dollar offer from last year.

Speaker Change #111: Is it just causing overhang on the stocks.

Yoav Stern: And you see here, we believe software and AI is the major driver after materials in this industry.

Yoav Stern: First of all, the problem is that I was a few other projects, and as I told you when we did an industry 4.0 and we're dealing with, for instance, robotics, electronic, additive, and construction. Those are more traditional industries that can live with 45 percent and easily even with 40 percent growth margins. If you're dealing with new technologies like we have in our electronics, manufacturing of electronics, and in now with all of this of metal, we must have, and you're right, getting closest possible to 60 percent. And as you see, our growth margins is improving, and we have now a very, very big and serious work on the acquisition of dust of metal to increase their growth margins.

Speaker Change #112: Both of them.

Speaker Change #111: Yeah.

Speaker Change #111: Our.

Yoav Stern: And we're focusing on the efforts on that.

Speaker Change #111: Few of them.

Speaker Change #111: And as I told you when we get into industry 4.0, and we're dealing with.

Yoav Stern: Next slide discusses the reason actually if you wish that we believe that the merger with best of metal is such a good transaction for us.

Yoav Stern: Next slide discusses the reason actually if you wish that we believe that the merger with best of metal is such a good transaction for us. You see in the middle, you see the overlap of distribution go to market. The verticals that we all go after are 80% overlapping. And there are little bit non-overlapping, which is basically an electronic business. And they are then in concern for that business. Otherwise, it's overlapping. You see in the right side a list of impressive customers by the way, many of them are customers of both of us.

Speaker Change #113: Robotics are electronic.

Speaker Change #113: Editing and construction.

Speaker Change #113: It was a more traditional and as soon as they can live with 45% even with 40% gross margins.

Yoav Stern: You see in the middle, you see the overlap of distribution go to market.

Speaker Change #113: If you're dealing with new technologies that we have been Oh electronics eh.

Yoav Stern: The verticals that we all go after are 80% overlapping.

Speaker Change #113: Fixed wing of electronics and now with all of most of them at all.

Yoav Stern: And there are little bit non-overlapping, which is basically an electronic business.

Speaker Change #114: We must have and you are right.

Speaker Change #114: Didn't close as possible to 60%.

Yoav Stern: And they are then in concern for that business.

Speaker Change #115: And as the as you see our gross margin is improving and we have now a very very big and serious work on the acquisition of the submit them to increase their gross margins. So the combined that's what the whole company, but for whatever we have 50, 218% investment in R&D.

Yoav Stern: Otherwise, it's overlapping.

Yoav Stern: You see in the right side a list of impressive customers by the way, many of them are customers of both of us.

Yoav Stern: And on the left, it gives you a little bit of a taste of the kind of solution and variety of solution we apply toward the segment where we can get into mass manufacturing and mass production. And I should have said, the mass is a little bit misleading. It's not massing so much as manufacturing 40 million remote control TV pieces a year. We're not going to get there. We're talking about high. Hi Nikyum, Midium Volume, and Hi Mount of Designs.

Yoav Stern: So they combine not for the whole company but for whatever we have 15 to 18 percent investment in R&D; we must have 60 percent growth margins because otherwise we will not have enough margin for profit. So your number was right.

Speaker Change #115: We must come 60% gross margins because otherwise we will not have enough margin for profit.

Speaker Change #115: So your number was right.

Speaker Change #115: And as much as the second question is sort of this investment has caused this is strategic I announced it when we did it in <unk>.

Yoav Stern: And I should have said, the mass is a little bit misleading.

Yoav Stern: As much as the second question, Stratuses, investment in Stratuses is strategic. I announced it when we did it in June, if I remember right of 2022. And if I remember right, let's give it take when we did it or the end of 2022. And the offer to buy stock is obviously not going to be executed with the number that was there from half a year ago. It's irrelevant by now. But the thinking that the strategic relationship between us and Stratuses and those of these relationships can evolve more and more is definitely there. We didn't give it up at all.

Yoav Stern: It's not massing so much as manufacturing 40 million remote control TV pieces a year.

Speaker Change #115: June if I remember right of 2022.

Yoav Stern: We're not going to get there.

Speaker Change #115:

Yoav Stern: We're talking about high.

Speaker Change #115: And.

Yoav Stern: Hi Nikyum, Midium Volume, and Hi Mount of Designs.

Speaker Change #115: If I remember right.

Speaker Change #115: One of them, we're doing it all at the end of 2022.

Yoav Stern: So, where any industry that needs digital industry, that needs to change a lot to their product lines and their product lines are not much touches in millions, but they are manufacturing in a lot of variety of designs.

Speaker Change #115: And Oh.

Speaker Change #115: The offer to buy services.

Speaker Change #116: He is obviously not going to be executed with the number that was there from Harper here, though.

Speaker Change #116: It's even relevant by now.

Yoav Stern: That's where we will play major role, it's called high mix low volume.

Speaker Change #116: But the thinking that this is a strategic relationship between us and subtleties and those who visit the relationships can evolve moving forward is definitely there we didnt give it up at all we believe it's totally different.

Yoav Stern: Lastly, some acquisition in details, we published it before, but just to remind you, it was this quarter, so it's worth what I'm mentioning.

Yoav Stern: Lastly, some acquisition in details, we published it before, but just to remind you, it was this quarter, so it's worth what I'm mentioning. A quiet 100% of the dust of metal. It's all cash transactions. People ask us, why would you pay with shares? The answer is to one, our share is undervalued. By far, I'm not talking about undervalued being 2.2 to 2.8 to 3.5. We believe it's undervalued in hundreds of percent, and using the share when it's undervalued, it's obviously diluted to our shareholders, and moreover it is also a fact.

Yoav Stern: We believe it's totally there. The relationship today with Stratuses Management is very friendly country to last year. We take over and we believe that everything that we'll do with them should be based on how we understand each other today. And we do very well. Your life and myself are talking regularly. So wait for future news. When the time will come, I believe there's strategic cooperation due between two companies like that. And we will be already a leader like there, and for the polymer, we are a leader in metal, electronics and others. So it's a good potential for cooperation.

Yoav Stern: A quiet 100% of the dust of metal.

Speaker Change #116: And our relationship today with substance management was very friendly country to last year.

Yoav Stern: It's all cash transactions.

Yoav Stern: People ask us, why would you pay with shares? The answer is to one, our share is undervalued.

Speaker Change #116: We gave up the day to take over and we believe with everything that we do with them should be based on how we understand each other today and we do it very well.

Yoav Stern: By far, I'm not talking about undervalued being 2.2 to 2.8 to 3.5.

Yoav Stern: We believe it's undervalued in hundreds of percent, and using the share when it's undervalued, it's obviously diluted to our shareholders, and moreover it is also a fact.

Speaker Change #116: Dave and myself, we're talking regularly so wait.

Speaker Change #116: Wait for future use.

Speaker Change #116: I will come I believe there's a strategic.

Speaker Change #116: Corporation.

Speaker Change #116: Due between two companies like that and we will be alright.

Yoav Stern: I'm sure you remember, if we bought our shares ourselves, because they were undervalued, just because it made sense to have less shares, and then Annex per share, when Annex came up, and more value per share. The reason why I think you don't see it yet in the share value is because the whole corner of this industry, or the whole corner that's called this industry, is getting very bad attitude from the market because of the rest of the companies that reduced their values, dramatically, and spent all their cash.

Linda: Already a leader like Darren neither in for the polymer we are Linda.

Linda: The metal and electronics and others, so where.

Linda: It's a good potential for cooperation.

Solzelman: I appreciate you sharing that. Thank you very much. Thank you.

Speaker Change #118: I appreciate you sharing that thank you very much.

Linda: Yeah.

Operator: This concludes the question and answer session.

Operator: At this time, we will pause momentarily to assemble our roster.

Speaker Change #119: This concludes our question and answer session I'd like to turn the conference back over to the company for any closing remarks.

Yoav Stern: Thank you.

Yoav Stern: I'd like to turn the conference back over to the company for any closing remarks. Thank you very much.

Operator: The next question is from Katherine Thomas with Edison.

Yoav Stern: That's the reason we're buying them.

Yoav Stern: That's the reason we're buying them. But it will change. A total consideration between Annex 3580, depends on certain formula. It's expected to close in the end of the year, and the closing condition is mostly finishing the regulatory approval process with the American authorities, and getting a shareholders vote, positive shareholders vote, by just a matter of shareholders. It's in process right now.

Thank you very much.

Operator: The first question is from Troy Jensen with Counterfeit Gerald.

Katherine Thompson: Please go ahead.

Yoav Stern: So we completed this in 35 minutes, and I appreciate your time and this early morning for you working day in the to speak with you soon because we actually believe we have very interesting things, events in the very near future, and we hope there will be fulfilled so we'll be able to use quote-unquote use the excuse and have another conference call, conference calls with you to discuss issues, positive issues, and we're looking forward to that, and thank you very much for your support.

Speaker Change #120: So we completed this in 35 minutes and I appreciate your time and just the early morning, where you're working day in the United States and we're looking forward to speaking with you soon because we actually believe we have very interesting things events in the very near future.

Yoav Stern: But it will change.

Yoav Stern: A total consideration between Annex 3580, depends on certain formula. It's expected to close in the end of the year, and the closing condition is mostly finishing the regulatory approval process with the American authorities, and getting a shareholders vote, positive shareholders vote, by just a matter of shareholders.

Troy Jensen: Please go ahead.

Katherine Thompson: Hi, Yoav.

Troy Jensen: Hey gentlemen, thanks for taking my questions here.

Katherine Thompson: It's actually Katherine Thompson.

Katherine Thompson: The first question, I believe that you've got teams already working with desktop metal to pull together integration plans for post-completion.

Troy Jensen: Good morning, good afternoon.

Troy Jensen: It just felt like the message this quarter was much more.., you know, robotics and AI and software driven than it has been in the past.

Yoav Stern: Is that correct?

Troy Jensen: Did I say that there was a.., kind of notable cone change and, and the direction of the consolidation that you guys want to pursue.

Yoav Stern: Yeah, we believe that what will sell all of our machines, and I'm talking now about all including desktop metal, and others that we are negotiating and talking about M&A, is the software, and the analogy, if you wish, Troy, is think about you, developing your product which is the paper...the analysis with the spreadsheets and with the word.

Yoav Stern: You are focusing totally on the software that enables you to do that, I don't think you know the name of the printer you have in your office.

Troy Jensen: The software is driving your tool to manufacture your product, not the hardware.

Speaker Change #120: And we hope that they will be full.

Speaker Change #120: Fulfilled so it will be able to use a quote unquote used excuse and have another conference call or conference calls with you to discuss issues positive issues and we're looking forward to that.

Yoav Stern: It's in process right now.

Yoav Stern: This is the point where we'll like to you to ask questions, and hopefully we'll be able to answer them.

Speaker Change #120: Thank you very much for your support.

Speaker Change #120: Yeah.

Operator: The conference has now concluded. Thank you for attending Nano Dimensions' quarterly earnings conference call.

Yoav Stern: Yep, all right, understood.

Speaker Change #121: The conference has now concluded. Thank you for attending nano dimensions quarterly earnings Conference call you may now disconnect.

Yoav Stern: Is there anything you can say about that process and how that's been going?

Troy Jensen: And kind of agreed, I get it.

Troy Jensen: And then how about just like your thoughts on then growth and additive versus growth and kind of the robotics markets, when you think about in the next 12 months in front of you is robotics, the area that's driving growth and consumer less than additive or?

Yoav Stern: Yeah.

Yoav Stern: and the extra color of the day.

Yoav Stern: The process is called, or we're calling it PMI, Post-Merger Integration. And the way we run this process is we have teams from both companies working on a daily basis, both meeting in the same location.

Operator: Operator, please.

Kayleen: Operator, please. Operator? Pardon me.

Yoav Stern: I believe that, in robotics automation and what we call industry 4.0 and be it electronic, additive electronics or even be it other, I'm sorry just a second, and other segments.

Yoav Stern: Now, both headquarters are in Boston, so it's going to be relatively straightforward to merge it.

Yoav Stern: We believe the growth there is not dramatic because it's established industries, but the growth exists, especially toward the digitalization of it. So it's 10%, 15% a year.

Operator: You may now disconnect.

Yoav Stern: But the teams are working together, all the teams and on all management levels, to plan.

Operator: You may now disconnect.

Yoav Stern: It's much more established and we like it that way.

Yoav Stern: Why do I say to plan?

Yoav Stern: The growth in additive manufacturing.., is now, and would be, and should be specific to segments of the LED manufacturing.

Yoav Stern: Because formally, we can start to run the combined company one day after the closing of the transaction.

Speaker Change #121: [music].

Yoav Stern: We believe segments of metal LED manufacturing will see much higher growth once the fitting formula for materials and materials for the printing and material for the end result product are working together well and we already see it happening.

Yoav Stern: So before that, we cannot run desktop metal, the desktop metal management team.

Yoav Stern: And secondly is what I mentioned here before, a drive, a very serious drive of growth in the LED manufacturing section of Digital Industry 4.0 is the software and the application that is enabling people to seamlessly design and send into printing without having to deal with different standards and every company has its own design tool and the design tools do not fit another company, that needs to change and it changed historically in the software industry for instance for PCs.

Yoav Stern: But I want to tell you something.

Yoav Stern: It all changed and it will change here, and the rest.

Yoav Stern: We discovered, as we get to know each other, that the management team in desktop metal is excellent.

Yoav Stern: We'll talk to you later.

Yoav Stern: They're going to be integrated with our management team, and they're going to make decisions together starting the day after the day of closing.

Operator: Operator?

Yoav Stern: Thank you.

Yoav Stern: And meanwhile, the PMI, the Post-Merger Integration process, is a planning process, very, very, very detailed.

Yoav Stern: I think in the next, 12 to 24 miles.

Yoav Stern: So when we hit the ground upon closing, we hit the ground running.

Yoav Stern: We will be focusing on, both integration of the instrumental and adding, more acquisitions.

Yoav Stern: And it works very, very well between the two teams.

Yoav Stern: Within the limit of our management capability to swallow it, because one of the things you have to remember, and just to make sure you're not becoming a deal junkie, is the acquisition is exciting, but the merger is what makes it profitable.

Katherine Thompson: Great.

Yoav Stern: So we're carefully negotiating with three, four other companies.

Katherine Thompson: And then on a similar topic, you mentioned the timetable to get to completion.

Operator: Pardon me.

Yoav Stern: We're not going to do all of them, again, depending on their size.

Katherine Thompson: Could you just give us a little bit more detail on the rough timings for the different regulatory approvals?

Operator: We'll now begin the question and answer session.

Kayleen: We'll now begin the question and answer session. To ask a question, you are pressed star then one on your telephone keypad. If you're using a speaker phone, please pick up the hand set before pressing any keys.

Yoav Stern: If they're very small and we just acquired them because of specific, okay, but if they're larger and the size of a desktop and they grow.

Yoav Stern: Yes.

Yoav Stern: We'll be very careful, but we are talking to some of them.

Yoav Stern: There are two regulatory approvals, traditionally, that are taking some time.

Operator: To ask a question, you are pressed star then one on your telephone keypad.

Troy Jensen: Understood guys, thanks for all the time and good luck.

Yoav Stern: One is Cotrodino, which is the regulatory agency that makes sure that in any merger, you don't have monopolies created.

Yoav Stern: Thank you to all.

Yoav Stern: That's not an issue between us and desktop metal, because we don't have...

Operator: The next question is from Katherine Thomas with Edison.

Yoav Stern: What we do have a couple of.., overlapping products and non-competing products, so there's no issue.

Katherine Thompson: Please go ahead.

Operator: If you're using a speaker phone, please pick up the hand set before pressing any keys.

Katherine Thompson: Hi, Yoav, it's actually Katherine Thompson.

Katherine Thompson: The first question, I believe that you've got teams already working with Desktop Metal to pull together integration plans for post-completion.

Yoav Stern: Is there anything you can say about that process and how that's been going?

Yoav Stern: Yeah, the process is called, or we're calling it PMI, Post-Merger Integration.

Yoav Stern: And the way we run this process is we have teams from both companies working on that, daily basis, both meeting in the same location.

Operator: To withdraw your question, please press star then two.

Kayleen: To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster.

Yoav Stern: Now, both headquarters are in Boston, so it's going to be relatively straightforward to merge it.

Yoav Stern: But the teams are working together, all the teams and on all management levels, to plan.

Yoav Stern: Why do I say to plan?

Yoav Stern: Because formally, we can start to run the combined company, one day after, sorry, one day after the closing of the transaction.

Operator: At this time, we will pause momentarily to assemble our roster.

Yoav Stern: So before that, we cannot run Desktop Metal, the Desktop Metal management team, but I want to tell you something.

Yoav Stern: We discovered, as we get to know each other, that the management team in Desktop Metal is excellent.

Yoav Stern: They're going to be integrated with our management team. And they're going to make decisions together, starting the day after the day of closing.

Yoav Stern: And meanwhile, the PMI, the merger integration process, is a planning process, very, very, very detailed.

Yoav Stern: So when we hit the ground, upon closing, we hit the ground running.

Yoav Stern: And it works very, very well between the two teams.

Katherine Thompson: Great and then kind of on a similar topic, you mentioned the timetable to get to completion.

Yoav Stern: Could you just give us a little bit more detail on kind of the rough timings for the different regulatory approvals?

Yoav Stern: Yeah, there's two military approvals, traditionally that are taking some time.

Yoav Stern: One is cultural Dino, which is the regulatory agency that makes sure that in any merger you don't have.., and Larry Thompson, the agency look at every merger and acquisition nowadays between an American company and a foreign company to make sure the American industries are not taken over by, Okay, and then one final question.

Troy Jensen: The first question is from Troy Jensen with Counter-Fix Gerald.

Katherine Thompson: I see that you've bought back I think about $8 million worth of shares in the quarter.

Yoav Stern: Are you still continuing to buy back shares for the rest of the year?

Yoav Stern: We have an additional close to $150 million.

Yoav Stern: We have being allocated and approved by the court in Israel and by our board to buy more shares.

Yoav Stern: We are buying or not buying based on a decision that is partly connected to the price of the share, partly connected to not having inside information, because that prevents us from buying when there's certain important events happening and the public doesn't know about it.

Troy Jensen: Please go ahead.

Yoav Stern: So there's many variables affecting the buying and selling, sorry, the buying of shares.

Yoav Stern: We do have a location and we do have the permission to buy and we'll do it as we see fit in the next few quarters.

Troy Jensen: Hey, gentlemen, thanks for taking my questions here.

Katherine Thompson: Fawr iawn, diolch yn fawr.

Yoav Stern: Thank you very much.

Operator: Once again, if you have a question, please press star then 1.

Troy Jensen: I'll just go up to you.

Operator: The next question is from Saul Zellman with Jerry Care.

Saul Zellman: Please go ahead.

Saul Zellman: Good morning, Yoav.

Troy Jensen: Good morning, good afternoon.

Saul Zellman: Good morning, team.

Saul Zellman: Good afternoon.

Troy Jensen: It's felt like the message is quarter was much more, you know, robotics and AI and software driven than it has been in the past.

Saul Zellman: So, again, thanks for the great presentation.

Saul Zellman: I actually just came back myself from Boston, so it would have been great to see you guys.

Saul Zellman: But all good.

Saul Zellman: We'd love to see what you guys are doing.

Saul Zellman: And I trust that you guys are working diligently on that post-merger.

Saul Zellman: Thank you for sharing that timeline for the integration with the desktop.

Saul Zellman: And you have my support rooting for the smooth process and success.

Saul Zellman: I do have two questions on this, slightly different, but along the same track.

Troy Jensen: Is that correct?

Troy Jensen: Did I say that there was a kind of notable cone change and kind of the direction of the consolidation that you guys want to pursue?

Saul Zellman: First one is you touched on it that over the last, I guess we'll call it the last couple of years that you put in the various bids, the valuations of 3D companies haven't been pushed lower in the general market.

Saul Zellman: Bait, and that's according to my humble opinion, it's based on the market opinion that their disbelief of any meaningful recovery.

Saul Zellman: So in your opinion, what kind of gross margin would indicate dynamic change in the business and provide sustainability for the future of the 3D industry?

Saul Zellman: I mean, just looking at the most recent press release, you have it currently at a margin of 45%.

Saul Zellman: Would you be happy with a number of 60% and that that's the dynamic change?

Saul Zellman: Or would you feel that it would have to be a much stronger robust number to indicate that?

Saul Zellman: That's question number one.

Saul Zellman: Question number two is along the lines, like you had said, we're not going into M&As per se, just to have, do the acquisition as part of integration, make sure that you're buying companies that you can actually make money with.

Saul Zellman: It looks like Nano vacated the Poison Pill litigation on Stratasys.

Yoav Stern: Yeah, we believe that what will fill all of our machines and I'm talking now about all including this dog metal and others that we are negotiating and talking about M&A is the software.

Troy Jensen: Yeah, we believe that what will fill all of our machines and I'm talking now about all including this dog metal and others that we are negotiating and talking about M&A is the software. And the analogy if you wish, Troy, is think about you developing your product which is the paper, the analysis with the spreadsheets and with the word you're totally focused on the software that enables you to do that. I don't think you know the name of the printer you have in your office. The software is driving your tool to manufacture your product, not the hardware.

Saul Zellman: Is that an indication that there's no longer an interest in pursuing that Stratasys buyout?

Saul Zellman: And if that's the case, why not officially end the $16.50 offer from last year as it's just causing the overrating on the stock?

Saul Zellman: those ones and I guess I don't know.

Saul Zellman: I don't know.

Saul Zellman: I don't want to.

Saul Zellman: I don't know.

Yoav Stern: Q & A.

Yoav Stern: And as I told you, when we get into Industry 4.0 and we're dealing with, for instance, robotics, electronic, additive, and construction, those are more traditional industries.

Yoav Stern: They can live with 45% easy, even with 40% gross margin.

Yoav Stern: If you're dealing with new technologies like we have in our electronics, manufacturing of electronics, and now with all of this metal.

Yoav Stern: We must have a new light, getting close as possible to 60%.

Yoav Stern: And as you see, our gross margin is improving.

Yoav Stern: And we have now a very, very big and serious work on the acquisition of Test of Metal to increase their gross margins.

Yoav Stern: So the combined, not for the whole company, but for whatever we have 15% to 18% investment in R&D, we must have 60% gross margin, because otherwise we would not have enough margin for profit.

Yoav Stern: So your number was right.

Yoav Stern: And the analogy if you wish, Troy, is think about you developing your product which is the paper, the analysis with the spreadsheets and with the word you're totally focused on the software that enables you to do that.

Yoav Stern: Thank you very much.

Yoav Stern: June, if I remember right, of 2022, and...

Yoav Stern: If I remember right, it's Ghibli take 108 or the end of 2022.

Yoav Stern: The Offer to Buy Stratasys, is obviously not going to be executed with the number that was there from half a year ago.

Yoav Stern: It's irrelevant by now, but the thinking that there's a strategic relationship between us and Sardis, and those strategic relationship can evolve moving forward is definitely there.

Yoav Stern: We didn't give it up at all.

Yoav Stern: We believe it's totally there.

Yoav Stern: The relationship today with services management is very friendly, contrary to last year.

Yoav Stern: We gave up the takeover and we believe everything that we do with them should be based on how we understand each other today and we do very well.

Yoav Stern: Yoav's life and myself are talking regularly.

Yoav Stern: So wait for future news.

Yoav Stern: When the time will come, I believe there's strategic cooperation due between two companies like that.

Yoav Stern: And we will be already a leader like they are a leader in photopolymer.

Yoav Stern: We are a leader in metal, electronics and others.

Yoav Stern: So it's a good potential for cooperation.

Saul Zellman: I appreciate you sharing that.

Yoav Stern: Thank you very much.

Operator: Thank you.

Speaker Change #121: Yeah.

Yoav Stern: I don't think you know the name of the printer you have in your office.

Operator: This concludes the question and answer session.

Speaker Change #121: [music].

Yoav Stern: I'd like to turn the conference back over to the company for any closing remarks.

Yoav Stern: Thank you very much.

Yoav Stern: So we completed this in 35 minutes, and I appreciate your time in this early morning, pre-working day in the United States.

Yoav Stern: The software is driving your tool to manufacture your product, not the hardware.

Yoav Stern: We are looking forward to speak with you soon because we actually believe we have very interesting things, events in the very near future and we hope there will be, and Archibald Benjamin Jr An header was Abraham Foster.

Yoav Stern: We look forward to getting much more details with both of you.

Yoav Stern: As a note of courtesy we need to listen to all of you.

Yoav Stern: This session has been accumulated some a little enough we want to keep few minutes of this session, so we want to be now fully able to distinguish between these quotes and take a look at our notes.

Yoav Stern: The only time that we will be able to correct our enormous loss and runtime is letter by letter for people and recurrence in this system.

Yoav Stern: Letter by letter we will present letters to each and every one of you in most each and every one of the session.

Yoav Stern: We have a few minutes that will not be fulfilled so we'll be able to quote 0.

Operator: The conference has now concluded.

Operator: Thank you for attending Nano Dimension's Quarterly Earnings Conference Call.

Troy Jensen: Yep, all right, understood.

Yoav Stern: Yep, all right, understood. I kind of agreed, I get it. And then how about just like your thoughts on the growth and additive versus growth in kind of robotics market? Think about in the next 12 months and 20 years because robotics, the area that's driving growth and consumer less than additive or the extra color. I believe that in robotics, automation and what we call industry 4.0 and be electronic editing electronics or even the other, I'm sorry, just a second.

Troy Jensen: I kind of agreed, I get it.

Troy Jensen: And then how about just like your thoughts on the growth and additive versus growth in kind of robotics market?

Troy Jensen: Think about in the next 12 months and 20 years because robotics, the area that's driving growth and consumer less than additive or the extra color.

Speaker Change #121: Yeah.

Yoav Stern: I believe that in robotics, automation and what we call industry 4.0 and be electronic editing electronics or even the other, I'm sorry, just a second.

Speaker Change #121: [music].

Yoav Stern: We believe it's more formality.

Yoav Stern: And then the CFIUS, which is the agency that looks at every merger and acquisition nowadays, between an American company and a foreign company to make sure the American industries are not taken over by unfriendly, call it, national industries from all kinds of places.

Yoav Stern: That's not including us.

Yoav Stern: We're from Israel, which is very close and very friendly.

Yoav Stern: So we believe this will be passing as well without major issues.

Katherine Thompson: Okay.

Katherine Thompson: And then one final question.

Katherine Thompson: I see that you brought back, I think, about $8 million worth of shares in the quarter.

Yoav Stern: Are you still continuing to buy back shares for the rest of the year? We have an additional close to $150 million allocated and approved by the court in Israel, and by our board to buy more shares.

Yoav Stern: We're buying or not buying based on a decision that is partly connected to the price of the share, partly connected to not having inside information because that prevents us from buying when there's certain important events happening and the public doesn't know about it.

Yoav Stern: We believe the growth there is not dramatic because it's published in the series but the growth exists especially toward the big generation of it.

Yoav Stern: We believe the growth there is not dramatic because it's published in the series but the growth exists especially toward the big generation of it. So it's 10%, 15% a year. It's much more published and we like it that way. The growth and additive manufacturing is now and should be specific to segments of the additive manufacturing. We believe segments of metal additive manufacturing will see much higher growth once the fitting formula for materials and materials for the printing and material for the hand results products are working together well and we already see it happening.

Yoav Stern: So there's many variables affecting the buying and selling, sorry, the buying of shares.

Yoav Stern: But we do have allocation and we do have the permission to buy, and we'll do it as we see fit in the next few quarters.

Yoav Stern: So it's 10%, 15% a year.

Yoav Stern: It's much more published and we like it that way.

Yoav Stern: The growth and additive manufacturing is now and should be specific to segments of the additive manufacturing.

Yoav Stern: We believe segments of metal additive manufacturing will see much higher growth once the fitting formula for materials and materials for the printing and material for the hand results products are working together well and we already see it happening.

Yoav Stern: And secondly is what I mentioned here before, a drive, a very serious drive of growth in the additive manufacturing section of digital industry 4.0 is the software and the application that is enabling people to seamlessly design and send into printing without having to deal with different standards and every company has its own design tool and the design tools do not create another company that needs to change and it changed historically in the software industry for instance for PCs.

Speaker Change #121: Yeah.

Speaker Change #121: [music].

Speaker: I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I .

Yoav Stern: It's all changed and it will change here.

Yoav Stern: And drive growth.

Yoav Stern: Maybe if you think about the next four months, you think you're going to just be more focused on the integration of desktop metal or you think we'll hear a couple more you know more acquisition tuck-ins and I know you don't know for sure, but just I think in the next 12 to 24 months, we will be focusing on both integration of the digital metal and adding more acquisitions within the limit of our management capability to swallow it because one of the things you have to remember and just to make sure you are not becoming a bill junky is the acquisition is exciting but the merger is what makes it profitable. So we are carefully negotiating with three or four other companies, we are not going to do all of them, again, depending on the size, if they are very small and we just acquire them because of specific, okay but if they are larger and the size of the digital metal will be very careful but we are talking to some of them.

Troy Jensen: Understood, guys, thanks for all the time and I am looking forward to it. Thank you Troy.

Katherine Thompson: The next question is from Katherine Thomas with Edison, please go ahead.

Yoav Stern: Hi Yoav, it's actually Katherine Thompson. The first question, I believe that you've got teams already working with desktop metal to pull together integration plans for post completion. Is there anything you can say about that process and how that's been going? Yeah, the process is called, we are calling it PMI post merger integration and the way we run this process is we have teams who know both companies working on a daily basis both meeting in the same location and both headquarters are in Boston so it's going to be strictly straightforward to merge it but the teams are working together on the teams and on all management levels to plan, why do I say to plan because formally we can start to run the combined company one day after the closing of the transaction.

Yoav Stern: So we are carefully negotiating with three or four other companies, we are not going to do all of them, again, depending on the size, if they are very small and we just acquire them because of specific, okay but if they are larger and the size of the digital metal will be very careful but we are talking to some of them.

Troy Jensen: Understood, guys, thanks for all the time and I am looking forward to it.

Katherine Thompson: Great.

Katherine Thompson: Okay, thank you.

Yoav Stern: Thank you very much.

Operator: Once again, if you have a question, please press star then one.

Operator: The next question is from Saul Zelman with Jerry Care.

Saul Zelman: Please go ahead.

Operator: Thank you Troy.

Yoav Stern: So before that, we cannot run desktop metal, desktop metal by a management team but I want to tell you something, we discovered as we need to know each other that the management team in desktop metal is excellent, they are going to be integrated with our management team and they're going to make decisions together starting the day after the day of closing and meanwhile the PMI, the post merger integration process, is a planning process, very, very detailed, so when we hit the ground upon closing, we hit the ground running and it works very, very well with between the two teams. Great, and then kind of on a similar topic, you mentioned the timetable to get to completion.

Saul Zelman: Good morning, Joab.

Saul Zelman: Good morning, team.

Saul Zelman: Good afternoon.

Saul Zelman: So, again, thanks for the great presentation.

Saul Zelman: I actually just came back myself from Boston, so it would have been great to see you guys.

Saul Zelman: But all good.

Saul Zelman: We'd love to see what you guys are doing.

Saul Zelman: And I trust that you guys are working diligently on that post-merger.

Saul Zelman: Thank you for sharing that timeline for the integration with desktop.

Saul Zelman: And you have my support rooting for the smooth process and success.

Saul Zelman: I do have two questions on this, slightly different but along the same track.

Saul Zelman: First one is you touched on it that over the last, I guess we'll call it the last couple of years, that you put in the various bids.

Saul Zelman: The valuation of 3D companies have been pushed lower in the general market.

Saul Zelman: And that's according to my humble opinion.

Saul Zelman: It's based on the market opinion that their disbelief of any meaningful recovery.

Saul Zelman: So, in your opinion, what kind of gross margin would indicate dynamic change in the business, and provide sustainability for the future of the 3D industry?

Saul Zelman: I mean, just looking at the most recent press release, you have it currently at a margin of 45%.

Speaker Change #121: Okay.

Saul Zelman: Would you be happy with a number of 60% and that that's the dynamic change?

Speaker Change #121: [music].

Saul Zelman: Or would you feel that it would have to be a much stronger, robust number to indicate that?

Saul Zelman: That's question number one.

Saul Zelman: Question number two is along the lines.

Saul Zelman: Like you had said, we're not going into M&As per se just to do the acquisition as part of integration.

Saul Zelman: Make sure that you're buying companies that you can actually make money with.

Saul Zelman: It looks like Nano vacated the poison pill litigation on Stratasys.

Saul Zelman: Is that an indication that there's no longer an interest in pursuing that Stratasys buyout?

Saul Zelman: And if that's the case, why not officially end the $16.50 offer from last year, as it's just causing the overrating on the stock?

Yoav Stern: As I told you, when we get into Industry 4.0 and we're dealing with, for instance, robotics, electronic, additive and construction, those are more traditional industries, they can live with 45% even with 40% gross margins.

Yoav Stern: If you're dealing with new technologies like we have in our electronics, manufacturing of electronics, and now with all of this metal, we must have a new right getting close as possible to 60%.

Yoav Stern: As you see, our gross margin is improving and we have now a very, very big and serious work on the acquisition of test of metal to increase their gross margins.

Yoav Stern: So they combine, not for the whole company, but for whatever we have 15% to 18% investment in R&D, we must have 60% gross margin because otherwise we will not have enough margin for profits.

Yoav Stern: So your number was right.

Yoav Stern: As much as the second question, Stratasys.

Yoav Stern: The investment in Stratasys is strategic.

Yoav Stern: I announced it when we did it in June, if I remember right, of 2022.

Yoav Stern: And the offer to buy Stratasys is obviously not going to be executed with the number that was there from half a year ago.

Yoav Stern: It's irrelevant by now.

Yoav Stern: But the thinking that there's a strategic relationship between us and Stratasys, and those strategic relationships can evolve moving forward is definitely there.

Yoav Stern: We didn't give it up at all.

Yoav Stern: We believe it's totally there.

Yoav Stern: The relationship today with Stratasys management is very friendly.

Yoav Stern: Contrary to last year, we gave up the takeover of Stratasys.

Yoav Stern: We gave up the takeover of Stratasys.

Yoav Stern: Stratasys management is very friendly.

Yoav Stern: Contrary to last year, we gave up the takeover of Stratasys.

Yoav Stern: And we believe everything that we'll do with them should be based on how we understand each other today.

Yoav Stern: And we do very well.

Yoav Stern: George, Daif, and myself are talking regularly.

Yoav Stern: So wait for future news.

Yoav Stern: When the time will come, I believe there's strategic cooperation due between two companies like that.

Yoav Stern: And we will be already a leader like they are a leader in photopolymer.

Yoav Stern: We are a leader in metal, electronics, and others.

Katherine Thompson: The next question is from Katherine Thomas with Edison, please go ahead.

Yoav Stern: So it's a good potential for cooperation.

Saul Zelman: I appreciate you sharing that.

Saul Zelman: Thank you very much.

Yoav Stern: Thank you.

Operator: This concludes the question-and-answer session.

Yoav Stern: I'd like to turn the conference back over to the company, for any closing remarks.

Katherine Thompson: Hi Yoav, it's actually Katherine Thompson.

Yoav Stern: Thank you very much.

Yoav Stern: So, we completed this in 35 minutes, and I appreciate your time in this early morning pre-working day in the United States.

Yoav Stern: We're looking forward to speak with you soon, because we actually believe we have very interesting things, events in the very near future, and we hope they will be fulfilled so we'll be able to use, quote-unquote, use the excuse and have another conference call or conference calls with you to discuss issues, positive issues, and we're looking forward to that.

Yoav Stern: And thank you very much for your support.

Operator: The conference has now concluded.

Operator: Thank you for attending Nano Dimension's, quarterly earnings conference call.

Operator: You may now disconnect.

Operator: H. J. L. S.

Operator: Субтитры предоставлены Субтитрами по-французски.

Yoav Stern: And then the CFUS, which is the agency that look at every merger and acquisition nowadays between an American company and a foreign company to make sure that American industries are not taken over by unfriendly, quality, national industries from all kinds of places, there's not including us, we're from Israel, which is very close and very friendly, so we believe this will be passing as well, without major issues.

Speaker Change #121: Okay.

Speaker Change #121: [noise].

Yoav Stern: Okay, and then one final question, I see that you've walked back, I think about $8 million worth of shares in the quarter, are you still continuing to buy back shares for the rest of the year? We have an additional 100, close to 150 million dollars allocated and approved by the court in Israel and by our board to buy more shares, we're buying or not buying based on a decision that is partly connected to the price of the share, partly connected to not having infinite information because that prevents us from buying when there's certain important events happening and the public doesn't know about it, so there's many variables affecting the buying and selling, sorry, the buying of shares, but we do have a location and we do have the permission to buy and we'll do it as we see fit in the next few quarters.

Speaker Change #121: Yeah.

Speaker Change #121: [noise].

Kayleen: Great, okay, thank you. Thank you very much. Once again, if you have a question, please press star then one.

Solzelman: The next question is from Solzelman with Jerry Care, please go ahead. Good morning, you're up, good morning to you, good afternoon, so again, thanks for the great presentation, I actually just came back myself in Boston, so it would have been great to see you guys. But all good, we'd love to see what you guys are doing and I trust that you guys are working diligently on that post-merger. I thank you for sharing that timeline for the integration with this stuff and you have my support rooting for your smooth process and success.

Katherine Thompson: The first question, I believe that you've got teams already working with desktop metal to pull together integration plans for post completion.

Katherine Thompson: Is there anything you can say about that process and how that's been going?

Solzelman: I do have two questions on this, slightly different, but along the same track. First one is, you touched on it that over the last, I guess, local in the last couple of years that you put in the various bids, the valuations of 3D companies haven't been pushed lower in the general market bait and that's according to my humble opinion, it's based on the market opinion that they're disbelief of any meaningful recovery.

Solzelman: So in your opinion, what kind of gross margin would indicate dynamic change in the business and provide sustainability for the future of the 3D industry? I mean, just looking at the most recent press release, you know, you have it currently at a margin of 45%, would you be happy with a number of 60% and that's the dynamic change or would you feel that it would have to be a much stronger robust number to indicate that question number one?

Yoav Stern: Yeah, the process is called, we are calling it PMI post merger integration and the way we run this process is we have teams who know both companies working on a daily basis both meeting in the same location and both headquarters are in Boston so it's going to be strictly straightforward to merge it but the teams are working together on the teams and on all management levels to plan, why do I say to plan because formally we can start to run the combined company one day after the closing of the transaction.

Solzelman: First of all, the problem is that I was a few other projects and as I told you when we did an industry 4.0 and we're dealing with, for instance, robotics, electronic, additive and construction. Those are more traditional industries that can live with 45 percent and easily even with 40 percent growth margins. If you're dealing with new technologies like we have in our electronics, manufacturing of electronics and in now with all of this of metal, we must have and you're right getting closest possible to 60 percent.

Solzelman: And as you see our growth margins is improving and we have now a very, very big and serious work on the acquisition of dust of metal to increase their growth margins. So they combine not for the whole company but for whatever we have 15 to 18 percent investment in R&D, we must have 60 percent growth margins because otherwise we will not have enough margin for profit. So your number was right. As much as the second question, Stratuses, investment in Stratuses is strategic.

Katherine Thompson: Great, and then kind of on a similar topic, you mentioned the timetable to get to completion.

Katherine Thompson: Could you just give us a little bit more detail on kind of the rough tidings for the different regulatory approvals?

Yoav Stern: Yeah, there's two regulatory approvals, traditionally that are taking some time.

Yoav Stern: One is Cocholino, which is the regulatory agency that makes sure that any manager you have a monopoly is created, that's not the issue between us and the metal, we don't have, while we do, I'm not happy.

Solzelman: I announced it when we did it in June, if I remember right of 2022. And if I remember right, let's give it take when we did it or the end of 2022. And the offer to buy stock is obviously not going to be executed with the number that was there from half a year ago. It's irrelevant by now. But the thinking that the strategic relationship between us and Stratuses and those of these relationships can evolve more and more is definitely there.

Yoav Stern: Overliving products, so there's no non-competing products, so there's no issue, we believe it's more formality.

Katherine Thompson: Okay, and then one final question, I see that you've walked back, I think about $8 million worth of shares in the quarter, are you still continuing to buy back shares for the rest of the year?

Yoav Stern: We have an additional 100, close to 150 million dollars allocated and approved by the court in Israel and by our board to buy more shares, we're buying or not buying based on a decision that is partly connected to the price of the share, partly connected to not having infinite information because that prevents us from buying when there's certain important events happening and the public doesn't know about it, so there's many variables affecting the buying and selling, sorry, the buying of shares, but we do have a location and we do have the permission to buy and we'll do it as we see fit in the next few quarters.

Katherine Thompson: Great, okay, thank you.

Solzelman: We didn't give it up at all. We believe it's totally there. The relationship today with Stratuses Management is very friendly country to last year. We take over and we believe that everything that we'll do with them should be based on how we understand each other today. And we do very well. Your life and myself are talking regularly. So wait for future news. When the time will come, I believe there's strategic cooperation due between two companies like that.

Operator: Thank you very much.

Operator: Once again, if you have a question, please press star then one.

Solzelman: The next question is from Solzelman with Jerry Care, please go ahead.

Solzelman: And we will be already a leader like there and for the polymer, we are a leader in metal, electronics and others. So it's a good potential for cooperation. I appreciate you sharing that. Thank you very much. Thank you.

Yoav Stern: This concludes the question and answer session. I'd like to turn the conference back over to the company for any closing remarks. Thank you very much. So we completed this in 35 minutes and I appreciate your time and this early morning for you working day in the to speak with you soon because we actually believe we have very interesting things, events in the very near future and we hope there will be fulfilled so we'll be able to use quote-unquote use the excuse and have another conference call, conference calls with you to discuss issues, positive issues and we're looking forward to that and thank you very much for your support.

Solzelman: Good morning, you're up, good morning to you, good afternoon, so again, thanks for the great presentation, I actually just came back myself in Boston, so it would have been great to see you guys.

Kayleen: The conference has now concluded. Thank you for attending Nano Dimensions Quarterly earnings conference call.

Solzelman: But all good, we'd love to see what you guys are doing and I trust that you guys are working diligently on that post-merger.

Kayleen: You may now disconnect. . [inaudible][inaudible]

Solzelman: I thank you for sharing that timeline for the integration with this stuff and you have my support rooting for your smooth process and success.

Solzelman: I do have two questions on this, slightly different, but along the same track.

Solzelman: So in your opinion, what kind of gross margin would indicate dynamic change in the business and provide sustainability for the future of the 3D industry?

Yoav Stern: I mean, just looking at the most recent press release, you know, you have it currently at a margin of 45%, would you be happy with a number of 60% and that's the dynamic change or would you feel that it would have to be a much stronger robust number to indicate that question number one?

Solzelman: It looks alike and then vacated the Poison Telegations on Stratuses.

Solzelman: Is that an indication that there's no longer an interest in pursuing that Stratuses by out?

Solzelman: And if that's the case, why not officially end the $16.5 dollar offer from last year as it's just causing the overing in the stock?

Yoav Stern: First of all, the problem is that I was a few other projects and as I told you when we did an industry 4.0 and we're dealing with, for instance, robotics, electronic, additive and construction.

Yoav Stern: Those are more traditional industries that can live with 45 percent and easily even with 40 percent growth margins.

Yoav Stern: If you're dealing with new technologies like we have in our electronics, manufacturing of electronics and in now with all of this of metal, we must have and you're right getting closest possible to 60 percent.

Yoav Stern: And as you see our growth margins is improving and we have now a very, very big and serious work on the acquisition of dust of metal to increase their growth margins.

Yoav Stern: So they combine not for the whole company but for whatever we have 15 to 18 percent investment in R&D, we must have 60 percent growth margins because otherwise we will not have enough margin for profit.

Yoav Stern: So your number was right.

Yoav Stern: As much as the second question, Stratuses, investment in Stratuses is strategic.

Yoav Stern: I announced it when we did it in June, if I remember right of 2022.

Yoav Stern: And if I remember right, let's give it take when we did it or the end of 2022.

Yoav Stern: And the offer to buy stock is obviously not going to be executed with the number that was there from half a year ago.

Yoav Stern: It's irrelevant by now.

Yoav Stern: But the thinking that the strategic relationship between us and Stratuses and those of these relationships can evolve more and more is definitely there.

Yoav Stern: We didn't give it up at all.

Yoav Stern: We believe it's totally there.

Yoav Stern: The relationship today with Stratuses Management is very friendly country to last year.

Yoav Stern: We take over and we believe that everything that we'll do with them should be based on how we understand each other today.

Yoav Stern: And we do very well.

Yoav Stern: Your life and myself are talking regularly.

Yoav Stern: So wait for future news.

Yoav Stern: When the time will come, I believe there's strategic cooperation due between two companies like that.

Yoav Stern: And we will be already a leader like there and for the polymer, we are a leader in metal, electronics and others.

Yoav Stern: So it's a good potential for cooperation.

Solzelman: I appreciate you sharing that.

Solzelman: Thank you very much.

Operator: Thank you.

Operator: This concludes the question and answer session.

Yoav Stern: I'd like to turn the conference back over to the company for any closing remarks.

Yoav Stern: Thank you very much.

Yoav Stern: So we completed this in 35 minutes and I appreciate your time and this early morning for you working day in the to speak with you soon because we actually believe we have very interesting things, events in the very near future and we hope there will be fulfilled so we'll be able to use quote-unquote use the excuse and have another conference call, conference calls with you to discuss issues, positive issues and we're looking forward to that and thank you very much for your support.

Operator: The conference has now concluded.

Operator: Thank you for attending Nano Dimensions Quarterly earnings conference call.

Operator: You may now disconnect.

Operator: [inaudible][inaudible]

Q2 2024 Nano Dimension Ltd Earnings Call

Request a DemoDemo

NNDM

Nano Dimension

Earnings