Nano Dimension Ltd. Q1 FY2024 earnings call

• Implemented the reshaping Nano initiative, improving profitability. - Secured new customers in RF (radio frequency) with applications in defense, including repeat sales to Western Defense Agency and new customers in advanced electronics. - AI services (DeepCube) starting to generate revenue. - Robotics additive electronics speed increased by 300%, used for solder paste spreading. - Partnered with Esko and Fiery for a digital printing solutions one-stop shop. - Gross margin grew from 10% to 46% since 2022, operating expenses reduced by a third from Q1 2023, cash burn reduced from $27M to $7M per quarter. - Buyback program successful, reducing share count by 15% by buying shares below cash value. - Industry analysis: growing market but poor business strategies destroying some businesses, while demand for additive manufacturing exists.

About half of the revenue came from additive manufacturing electronics, and the other half from other additive manufacturing segments (including micro mechanical polymers, special polymers).

• Aim to reach breakeven towards the end of 2025, specifically in the second half of 2025. - Asset allocation decisions regarding share buybacks, R&D, and acquisitions based on return potential, with share buybacks being a quarterly decision dependent on alternatives.

• Market competition with poor business strategies leading to some businesses failing despite growing demand. - Accounting impacts from share price fluctuations, where profit/loss from share price changes don't reflect business operations.

Q: Could you break down Q1 2023 revenues between additive and robotics or other sectors?

A: About half from additive manufacturing electronics, a bit less than half from additive manufacturing of all kinds including electronics, micro mechanical polymers, special polymers.

Q: Update on the discussion with Stratasys?

A: We have friendly discussions ongoing, we are strategic partners with 15% stake in Stratasys, continuing discussions on potential cooperation.

Q: What revenue level is needed to hit breakeven?

A: Our plan is to reach breakeven towards the end of 2025, second-half of 2025.

Q: Characterize customer demand and cost cuts?

A: Customer demand varies by vertical; defense is active, German market has slight slowdown in electronic field but marginal. Cost basis will be reduced further in coming quarters. Share buybacks are a quarterly decision based on asset allocation return potential.

Q: On the Stratasys investment thesis?

A: It's a strategic investment, not for trading. We don't intend to divest, believe Stratasys has a good future, continuing discussions on potential cooperation