Good day, ladies and gentlemen. Welcome to Nano Dimension's Second Quarter 2023 Earnings Conference Call. My name is Anthony, and I'm your operator for today's event. On the call with us today are Yoav Stern, Chairman and CEO; Yael Sandler, CFO; and Julien Lederman, VP of Corporate Development. 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. If you have not received a copy of the press release, please view 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. Yoav will begin the call with some business updates followed by a question-and-answer session at which time the management team will answer questions. I would now like to turn the call over to Nano Dimension's Chairman and CEO, Yoav Stern. Yoav, please go ahead.

Thank you very much. Hi, everybody. Welcome to the call, We will go through the presentation and then we'll open it to Q&A. Turning to Slide number 3. Our quarter was an excellent quarter. It follows two other excellent quarters. Actually, it was Q4 of 2022, Q1 of 2023, and now Q2, each quarter was a stellar -- the quarters were best quarters of the company until now. The key highlights is, first of all, in our opinion, it's 5 times, there is an organic growth for all people who were asking this for long time and not to speak about some Canadians that are also lying about these numbers, our growth in organic growth in the last three and a half quarters is about 47%. Our growth from the same quarter last year is 33%, and revenue is higher from -- in the first half is higher by 38% from 2022. More importantly, our gross margins dramatically increased by 81% and 185% for the quarter and half, and they went up from 40% to 48%, depends if you're speaking about adjusted gross margin or gross margin. And you can see there is in the first column on the left in the bottom comparison for quarters both in IFRS and non-IFRS. In the right column, you'll see a lot of new successes from customers. Certain things I've been missing there because over the last few weeks, we got one of the major space companies that are buying dramatic amount of machines per one order and more orders to come and similar names that I cannot disclose and in all across the product lines that we have. On the DeepCube artificial intelligence, very, very important advancement by getting other companies that are building other machines or having other needs, and are…

We will now begin the question-and-answer session. [Operator Instructions]

Operator, anybody?

[Operator Instructions] Our first question will come from Rami Rodge (ph) with Private Investor. You may now go ahead.

Hello? Can you hear me?

Yes, please.

Hi. So thank you for the presentation. I'm actually also quite disappointed by the fact that Murchinson only talked about Nano's cash position without even providing any roadmap for the actual business and profitability. So I am supporting the current management. Having said that, can you please share some insight on the early turnouts and chances to win this proxy contest? Thank you.

Yeah. Listen, the people who are coming from Canada together between the two funds and as much as I know have -- and that's what they declared have 15% of the -- sorry, about 12% of the company. That's about I don't know 20-something million shares. Now I'm assuming they were able and I know about a couple of other funds that they recruited to vote with them. All of them, their cost per share coming in is about $2.5. The other two funds, I know about Clearline Capital, I know about Intrinsic, people that I know well and we're very, very friendly until with us -- talking to us and then they got greedy when they realize somebody can help them because they had a cost coming into the same price. So I'm assuming people who will naturally vote for them in order to get $3.7 a share will be the people I mentioned, which together, let's say it's 15%. The rest of the 85% -- maybe 82% -- 83%, maybe there's 2%, 3% of -- in between but the 83% rest is retail shareholders. I'm talking about 160,000 to 170,000 people. This is almost like voting for parliament. When you have to reach 165,000 people give or take, it's not that you can speak like if there were five institutions one by one and convince them that the growth plans we have comparing to liquidation plan is worthwhile. So we have to reach and we are making an effort now four weeks to reach these retail shareholders which by the way most of their price coming in is above $5. We're talking about intelligent people. We're talking about people who are using their own savings to invest over the last two years. Because when I raised the $1.5 billion, I only sold to institutions, and you think about it, only 15% were left. Actually, I did raise the money from Murchinson, but -- and some invested in all my deals and made money. So all -- them including and some at the project time sold their shares to retailers, we paid much more than $4 a share. These retailers, if they vote for us, it's a total lens-led success for us, 85% against 15% give or take or 83% against 16% -- 84%. The issue is there are a lot of these retailers are not used to vote and they get emails or messages from their brokers and they don't pay attention because they have businesses and they have companies to run and they have work to do. And if we don't get them to vote and only a few of them vote, then we don't win. We lose. If half of them vote, we win dramatically. If 40% of them vote, we win dramatically. That's the challenge. We are making the best effort we can. I hope I answered your question.

Yeah. Thank you.

The key thing for these retailers obviously, is if this liquidation happens and these guys get in and they start to do or will buy the shares from the public or do a share buyback and -- at $4 or $3.5, they will make 40% to 70% return on their investment over half year. The rest of the retailers, the 85%, most of them will have losses. And by the way, note, we announced that we went to court to ask for another $227 million of a buyback and we're asking it for a year. So we will have the option depends on the advancement of the M&A programs and acquisitions to decide what is actually adding more share -- sorry, more value to our share as we move forward during the next year. Once we get the approval, sometimes we may decide to buy the company we're going to buy, the M&A and merger to make money and earnings per share, or sometimes if their purchasing is not happening in the right pace, we can use this war chest to do a buyback of shares. So that's it, by the way. Yes, please. Next question.

Our next question will come from Katherine Thompson with Edison. You may now go ahead.

Hi, there. Hi. I have a couple of questions. I'll just give up the questions this way. And the first one, you mentioned [Technical Difficulty] I just wanted to understand if that was existing customer, and also when you expect to ship that order and to recognize revenue. And then the second question was on the recent acquisition of Additive Flow. I just wondered if you could give us any financial information about the company, so any revenue or cost data, and also any information on what you paid for the company. Thanks.

Can you just repeat the first question? I couldn't hear. There was a little bit bad connectivity.

Yeah. So you recently announced [Technical Difficulty] new large order. I just wanted to know if that was from existing customer or new customer, and also when you expect to ship the order and recognize the revenue.

Okay. I got it. Thank you very much. Okay. So the first question, the large order which was the larger order in our history to one customer and the largest amount of also machines we're selling to the same customer was the first-time customer leading aviation aerospace worldwide company. They were shipping it within the next few months, some of it this quarter, some of it early next quarter. We expect that's the expectation. They expect to buy many more machines if this first order is successful because they are growing very fast. And it's the first time, as I said, customer. Secondly, -- second question, the Additive Flow acquisition, we did not publish the numbers for a reason. It's a very sufficient technology and it has very sophisticated clients, some of them customers, some of them -- I disclosed some of them I couldn't. Obviously, the numbers are small enough that we can afford not to publish it and because of the sensitivity of the technology and the competition to Additive Flow and the customers they have, we decided not to publish.

Got it. Okay. Thanks.

Next question, please.

[Operator Instructions] Our next question comes from Donald Solomon (ph) with [indiscernible] Firm. You may now go ahead.

Hi. Good morning. Yoav, thank you for your presentation. A lot going on, both in the release as well as the presentation this morning. Some shared and some new information. I guess a lot going on out there. I'm interested in picking your brain for a second. From your perspective, how do you envision the consolidation stage in the additive manufacturing sector following the termination of the Nano's tender offer? And the fact that the current 3D Stratasys deal in my opinion at least doesn't seem realistic, especially after their quarter two results and their current weak cash position based on their -- those results.

Okay. It's a very good question. I kind of referred to it a little bit earlier, but I will expand on that. So let's speak about who we are talking about. Our industry is, I would say, more than 400 companies for sure because Julien here beside me and our M&A department has looked and we have a list of -- Julien, at least 400, right?

At least that.

So that's the people we know. I'm assuming always these people we don't know, but that's probably much, much smaller. We know that the industry with companies from -- anyone from $1 million to $650 million in revenue. The once that are public and you know them better because of publishing the results are Nano, Desktop Metal, Markforged, 3D Systems, Stratasys, Velo3D, voxeljet, in a way materialize, Protolabs, Shapeways, Fathom, Xometry and [indiscernible]. Of course, they're private companies beyond that, and I think, this industry which is estimated at $15 billion today and growing to $30 billion at the end of the decade is bound and must consolidate. And what we started and failed and we did fail because we offered at the end to buy Stratasys at full. They didn't even respond to us. Then, we offered to buy part of it and they activated their poison pill or had the poison pill. So we couldn't do -- we started something that we believe is right for the industry because none of the company I have mentioned to you is profitable, maybe other than materialize. I don't remember exactly. Maybe -- and materialize in Protolabs is not really additive manufacturing because Protolabs is more subcontract manufacturing and materialize as well. So all the rest are not profitable. More than that, all the rest are finishing their cash. Five of them are SPAC refugees. The share at SPAC was $10 at a deal point and today, all of them below $1.5. And this -- there is net of Stratasys and 3D. Stratasys and 3D announced horrible quarters. All the rest of the companies announced bad quarters, may be added in Markforged, which also had a squeeze out in its quarter. This company doesn't have a business model successful. They have…

Okay. So based on what you just shared where you're saying that except for Markforged who is doing it right, everybody else is just losing money, and we're seeing the significant sell-off in major cases as well as the decline in share price of Nano's peers. Is everybody just running at a capital? And do you foresee bankruptcies coming through like with everybody else except for Markforged and Nano?

Nano is definitely not going to any other direction other than growth. Yes, I hope and I think they're smart enough people. They're not going to drive it into bankruptcies. They have to drive it into -- I'll give an example. Take Velo 3D. They finished their cash. They announced -- they didn't have a choice so they announced last week that they're raising convertible debt at $70 million. Their share went down 40%, of course, because it totally labeled. They'll get the cash. They're totally non-profitable Velo. They have gross margins ridiculously low, if I remember right now, between 15% to 20% and they don't have a business model. They have one customer that I think is more than 35% or so from what I know on their business. Can they finish their cash? So they didn't go under. They raised money, diluted the share. Share went down from $3 to $1.40 and still going down. That's a good example. Another example is [indiscernible] much smaller and posted debt is $30 million business, which we know very, very well. And they didn't do what's right. They're getting close to finishing their cash and are desperate. And it's not easy for them to raise money because they're a German company with a German corporate law them allowed to raise money at any price, you're limited by how much discount and [indiscernible] I don't know if they'll survive. Desktop Metal finishing their cash within a quarter and a half. 3D. 3D cannot be to Stratasys what they committed in the proposal because they had a bad quarter, they burn the demand also. So I don't remember the exact number. They don't have enough cash to pay now. So I don't think they will go bankrupt. I think they're smart enough people that will understand that they need to consolidate.

Great. Thank you very much.

Thank you very much.

[Operator Instructions] Our next question will be a follow-up from Rami Rodge with Private Investor. You may now go ahead.

Hi. Thank you. Following my first question, do we know how the voting is going? How many people are voting so far?

So far I think I saw about 30 something million shares voted out of 250 million. But remember, we have 10 days ago. So usually people vote -- traditionally vote what have been told by our experts in the proxy solicitation firm, they're voting usually in the last few days. So I'm not surprised that it's still low.

Okay. Thank you.

Thank you.

This concludes our question-and-answer session. I would like to turn the conference back over to the company for closing remarks.

Let's just wait for a second and see if a couple of other people may have some latest thoughts about the question to give them an opportunity and then we'll close it. Okay. It seems like it's quiet on the Western front. So I will thank you very much all participants. I would also want to invite you. Over the last few months, I'm spending time writing, answering emails to private and -- not private investors. Personally, I made it my goal to respond to you as we're in this not-to-nice process of people saying bad words about other people and people trying to liquidate the Company. So if you wish, I'm sitting it night hours and answering emails to retail investors. Feel free to write me and to call me if you wish, and we have other teams here, other members also of the team that are totally focused on answering the question because our goal when we're convinced that from 85% of our investors, if we have reached to each one of them, we would have 85% voting for us. Of course, we can do that, but we're making our best. So thank you very much everybody, and have a good day.

The conference has now concluded. Thank you for attending Nano Dimension's quarterly earnings conference call. You may now disconnect.