Ladies and gentlemen, thank you for standing by. All participants are at present in listen only mode. Welcome to today's conference call to discuss Nano Dimension's third quarter of 2021 results. On the call with us today are Yoav Stern, Chairman and CEO, and Yael Sandler, CFO. 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 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. Yoav will begin the call with a business update, followed by a question and answer session, at which time Yael will answer questions regarding the third quarter 2021 financial results. As a reminder, this conference is being recorded November 24, 2021. I would now like to hand the call over to Mr. Yoav Stern. Mr. Stern, would you like to begin? Sure. Thank you very much. Hi, everybody. Thanks for participating. I'll speak, focusing on subjects that are interesting or I think they're interesting and of course, let you ask questions where you wanna direct me to other subjects. First of all, definitely this quarter and this nine months, the best quarter and nine months since at least I came into this company, which was a little bit more than a year and a half ago. When I came to this company, within two months, Corona started. Yes, we have a great advancement. Things are moving forward, but it compares to last year, which was a lousy year. More importantly than that, though, and that's where the real movements are being seen or can be seen, and it goes to show you that like in many other companies, but specifically ours, you don't necessarily see everything in the numbers yet. We announced DragonFly IV at a half a year delay, but in a very successful release. We participated in a Productronica show in Germany last week, which was in a lull for two years because there was no shows. Even last week when all Germany started to struggle with the new wave, half of the people didn't arrive. We still had DragonFly IV released and immediately two purchase orders already achieved within few days. Great excitement about the performance of the new machine, and we were the talk of the show, and we had relatively very big amount of leads, so we're very excited about it. Importantly, few weeks before the show, we announced and we completed an acquisition of Essemtec, which was on the show as well with our name combined with theirs. Essemtec we purchased for $15-$19 million. Depends on the certain performance later, can go a little bit higher, but no more than $2.4 million higher. It's a $20 million, close to $25 million business, profitable and growing, which is what we like to pay. We're not, in our M&A, going to allow ourselves to glide into the, what we believe are overly overpayment resulting from many things in the market which we can discuss if you ask me. We are picking and choosing, we are buying and building, and we'll continue to do so, and we're very proud and very fortunate to have Essemtec team from Switzerland join us. They're going to continue to grow, we expect, and we're going to merge their technologies with ours, with synergies which will become a major component of breakthrough in printing three-dimensional electronic devices with mounting components in the process of printing in a clean, non-intrusive way to the environment. We continue with M&A along these lines, similar lines, and you will probably hear quite a lot of news in the coming months about this subject. A few words on issues that I think you would be asking about, and I'm going to preempt your questions so the people who intend to ask those questions can get the answer now and/or ask follow-on questions, but I'll try to be helpful as possible. The price of the share, you can have lots of theories about why the price of the share went down when the news are so good. My experience shows that when you have a year when people made money in many investments on the public markets and one or few shares went down, when you get toward the end of the year, people sell the shares that are on the way or were down compared to what they purchased them for in order to take the tax losses, offset it against the money they made in other shares, and not paying taxes at the end of the year. They have to do it in order to avoid wash sales, what's called. They have to sell and wait 30 days at least before they rebuy them. Even people that wanna hold our shares and have smaller amount of shares are maybe doing that, which is causing certain price pressure. Volumes that I see as the share went down are very low volumes. I don't see or I can't guess about any other reason other than that. My guess is as good as anybody else. I've seen these things happening before in very similar situations. To people like you, we have very loyal many loyal shareholders, which we admire and work for. We have some other shareholders that are obviously a bit frustrated because of the price of the share. As I said earlier and repeat in every call and every newsletter, our investment in us is a long-term investment, and people who expect quarterly results to have an effect or major effect in the short term are going to be disappointed. That's how I originally had the shareholders that joined us in investing in the company. For people who are sending emails all over the place claiming that there's buyout options and buyout offers, there's no buyout offer for the company by any company. We're not going to buy shares from the market with money that was invested in the company by shareholders who I met personally, who invested in order for us as a team to perform the upside, which will be three or four times their investment, but over a few years, not over a few quarters. We don't intend to buy shares from the market with money given to us by investors. When we'll be profitable in the future and we'll be accumulating profit, from the profit, we may choose to buy shares in the company, but it's not going to happen soon, anytime soon. If there were going to be questions about it, I answered them. Other than that, I'm going to refer to you guys to ask us questions that will be directing us to your specific interests, please. Thank you, sir. Ladies and gentlemen, at this time, we'll begin the question-and-answer session. If you have a question, please press star one. If you wish to cancel your request, please press star two. If you are using speaker equipment, kindly lift the handset before pressing the numbers. Your questions will be pulled in the order they are received. Please stand by while we pull for your questions. The first question is from Puneet Maheshwari of Zen-Ki Capital. Please go ahead. Hi, Mr. CEO. I have a question regarding the sale of current DragonFly IV. In one of the BiRex, one of the executives who joined from Amazon, he mentioned one of the top four players are interested in buying the machines, and they visited your machine a couple of years back, and the tech was not up to the speed. I believe in two years, we have made great strides. Latest launch, how are we with the one of those customers? Did they show the interest? How are we? If you can elaborate further more on how was the reception of the machine in the recent launch? Thank you. I didn't meet any customer that didn't want the machine two years ago and wants it now. The answer to your first question is I don't know. The people that I meet and we meet that are interested in the machine now are very excited about it. The two beta sites, which were with customers that had machines, the previous machines, were very successful and the customers are very happy with the performance of the new machines. Okay. Thank you. Thank you. That's it for me. Yep. The next question is from Jeff Rice of Malcap Investments. Please go ahead. Good day, Mr. Stern. Great results on this ER. From what I'm seeing, it looks like Nano Dimension is branching out to be more of an AI company and a robotics company versus just a PCB company. I was wondering if you can elaborate on that, especially with the robotic arm? I've heard you mention that. Then my second question, just to touch on what you said earlier. I know that you said no buyout on the table now, which I agree with. The current share price doesn't make any sense. Also, I know that you previously said if the price, someone offered a price that made sense, then obviously, you know, that's a different story. But what about if someone like HENSOLDT or L3Harris wanted to take minority ownership? Would that be a possibility? I appreciate the insight. Thank you, sir. What was the second question? What was the question? Can you repeat it? Sorry, the line was not so good. Can you repeat it? Yes, sir. I was wondering, let's say one of our partners, L3Harris or HENSOLDT or SemiCon, if they wanted to take minority ownership, to put some money into Nano Dimension, to have a small stake in the company, would you be open to that? Okay. I'll answer your two questions. Thank you very much. The second question is, I don't know. When they will offer me, I will consider it and I'll bring it to the board and we'll decide, but nobody offered this to me until now. The first question. Yes, you're absolutely right. We are very, very much tilting into becoming a deep learning, artificial intelligence-led industrial, machine, three-dimensional machine company. We believe that the whole additive manufacturing, both electronics and additive manufacturing industry, while developing better and better machines and more accurate machines with higher yield, etc., etc., which, the holy grail of moving seriously into production without adding an artificial robotic brain, or if you wanna call it, machine learning brain, that will be able to overcome the inherent, conflict and problem of production. Production is an analog process. It's not digital process ever. At the end of the day, something cuts something or something drops something or something melts something that adds to something, and all these are analog processes, which by definition are not being binary or digital, cannot be totally accurate like zero or one. Being non-accurate, having deviations, having statistical formulas and statistical combinations of some things are within the limitations and something are without, out of the limitations, the yield is being affected by a statistical process. In order to overcome that, you need to have a brain that is analyzing in real time the statistics and able to decide in real time what to do with deviations. Either it can correct them, or it's deviations that are too wild, and it has to stop the process and restart a new part. We believe that the holy grail of manufacturing through additive processes, three-dimensional, minimum, ecological effect, reducing cost of material, reducing time to market, can be achieved not only by machines, but by machines that will be led with deep learning, machine learning, and not even artificial intelligence in the regular manner, but the more advanced artificial intelligence where processes and algorithms are self-learning and self-correcting. That's the reason we purchased DeepCube by now half a year ago. We are very advanced in the last six months in integrating in the many aspects of our machines and acquisitions, machines for our acquisitions, and we are very, very excited about it. Thank you very much for the question. The next question is from Rich Brunn. Please go ahead. Hello. Hi. Good morning. Congratulations on the progress you have and on the leadership at Nano Dimension. Based on your observations today, what do you think is the single greatest challenge for Nano Dimension? Is it the quality of the materials, the consistency, the production capabilities, the software development, or do we still have the COVID lingering, that's hindering our progress? And what is Nano Dimension doing about it? The last main item you mentioned, COVID, it is there, it is lingering, it is challenging, but it's not a strategic challenge. It's not a long-term. If you look at the history of pandemics in the world, and I'm not an expert on that, I'm just reading a lot, an average pandemic is three-five years. Everybody that thought, including myself, by the way, that the pandemic will disappear within a year, reality is in our face. It's not strategic. I wouldn't even define it as a challenge. It's a quarterly challenge, semi-yearly challenge. We'll get through it. We'll sell a little bit different ways. We'll sell a little bit slower. That's not the point. Other challenges, technological challenges, is material development, which I've said for a long time. We have great advances in material development. We believe, I believe that the secret sauce in this whole industry that's called additive manufacturing is materials. In so much as people try to be proud, which they should be proud, they're very sophisticated machines they're developing because that's what you see. You see a machine that's moving and doing and making miracles and robotic and automated without people involvement. It's true, but that's not the major challenge. The major challenge are materials. In all the additive manufacturing industry, the challenge between having materials that are easily jettable or easily deposited and fit the deposition process of additive manufacturing are not necessarily the materials that after being manufactured, fit the end product with the type of performance that the end product has needed. In many ways and many times, there's a conflict between materials that are easy to use when you create the product and the materials you need to use when the product is actually performing in the field. That is true for all additive manufacturing and specifically for additively manufactured electronics. Even since I came here a year and a half ago, just to give you example, the materials were only working within 0-45 degrees Celsius. By now, we are between 0-100, and soon we're going below zero and above 100. We're moving ahead very. I'm very courageous about that. In parallel, we're doing M&A, which is balancing that risk as well, because, for instance, the purchase of Essemtec, which is now generating beautiful revenue and great gross margin, is complementary to what we're doing, but it has no dependency in materials at all. Actually, I shouldn't say at all. They have a little bit of dependency on soldering materials and glues, but it's minor comparing because it's not involved in building parts from materials. It's involved in assembling parts and using glues or soldering paste. This balances the risk of the materials in the other part of the business. Thank you. Okay. With that challenge on materials, is it something that can be solved through aggressive research and development or through acquisition? Yes, both. Both. Okay. Just one thing. I see that you added the for the acquisition strategy, a type NG. I don't know if that's specific to DeepCube or are we also seeking opportunities in that direction when it comes to the type NG acquisitions? What type? Sorry. I noticed on the presentation there's a tuck-in acquisition strategy. I'm not too sure if it's specific to DeepCube or No. We don't have the. We, yeah, if you wanna call it type NG, we are looking for. NG is really used for new generation. We are looking for companies today, yes, you're right, that are in additive manufacturing, which is adjacent to the additive manufacturing electronics, like Fabrica, which we purchased, and like Essemtec, except Essemtec is within electronics, Fabrica is adjacent to electronics, but those companies are selling their machines through our distribution channels that are similar to ours. But more importantly, the application of machine learning, deep learning machines is very, very similar manner that we're using it for the AME machines without additional investment. We'll be able to leverage the knowledge and the systems of machine learning we have by applying them to companies in additive manufacturing that we are looking to purchase, which was not the case before we had the DeepCube group. Once we had it and we in the due diligence, that's the reason we actually purchased it, we realized that we can expand our market segment and not stay only in additive manufacturing electronics, but be also in additive manufacturing in areas that are like additive manufacturing of micro mechanical parts, etc., etc. That are the additional, and you are right to identify that. All right. Thank you. I just wanna encourage investors, you know, that we're gonna do this right, not fast, and trust the process. Thank you. Thank you. The next question is from Eric Marcus. Please go ahead. Good morning, Mr. Stern, or I guess good afternoon in Israel right now. Thank you for your opening comments. I'm gonna address my questions to some of those early comments. With all due respect, you know, I'm a long-term shareholder and a long time senior tech exec. You know, my concern stems from the fact that right now Nano's market cap is about $1.1 billion, but the cash on hand is $1.3 billion. So you know, the logical extension there is that the market is not valuing the company above $0. That's very concerning as a shareholder. I wanna really understand how the company is going to protect shareholder interest. I understand your comment, reasoning that shareholders are selling to take tax losses at year-end, but that really does not address the 50% loss in share value that we've seen in just the last five months. I think there are things that in fact could be being done beyond what is being done today. For example, what about a joint venture with a large PCB client, forward integrating into a fab plant? What about supporting the new global marketing VP, which I think is a wonderful acquisition, with a well-thought-out $100 million marketing strategy instead of the $25 million a year that's currently being put into marketing? What about looking at a significant acquisition, not just a $25 million-$40 million acquisition, but something very significant over $100 million in the AI or robotic or additive manufacturing business? I don't understand why senior management is allowing the share price to simply go into free fall when there are aggressive things that could be done to address shareholder value. I would appreciate your comments, Mr. Stern. What is the question, please? You want me to repeat it again, sir? No. You gave me a lot of good ideas, but asking, what are you asking me? I wanna know what you're willing to do to stop the free fall of the stock shares? I wanna know what aggressive proactive action, instead of sitting on $1.3 billion while the market is evaluating your company at negative value, what are you prepared to do to protect shareholder interests? I've given you three ideas. I'd like to know what your ideas are. What are you going to do to protect shareholders? We're going to use part of your ideas, and we have more ideas to develop the business of the company, and we're going to continue to do so. I'm not going to describe more ideas because of competitive reasons and competition on M&A. Your ideas, the three that you mentioned, are actually very good ideas. All of them are in the works. I'm just very concerned about management appearing to sit on the sidelines for the last six months while the stock price is in free fall. Okay, sir. I don't know where you are sitting, but I'm getting up every day at eight, and I'm going back to sleep at 11. Out of that hours, I'm working probably 95%. I traveled within the corona within 10 countries around the world, and you can buy more stock, the stock will go up. Next question, please. The next question is from Byron Meo of 1031 Private Exchange Group. Please go ahead. Hi. Thank you. Yeah, I'd like to know roughly about how much money went into the production of the DragonFly IV. What is it? These are three-part questions. What does it sell for? What is the lifespan before it's replaced by a next generation type in your expectations? You're asking, what is the price to manufacture a DragonFly IV, and what is the, what do you call it, the sell price? Yeah. Obviously it took a lot of money in research and development that goes in and gets capitalized and the expense of the machine. Obviously there's a sell to this. I'm trying to figure what kind of profit you can generate from the machine. Obviously, you have to keep advancing the technology to stay ahead of the game. I think that one of the reasons why the stock is selling for below the cash value is because people are questioning cash burn and profitability. You're not the only company to sell at that. A lot of the biotechs are selling it that way. I'd like to kind a analyze the cash burn and the profitability from the development of the DragonFly IV. Well, you can't analyze it from the development of the DragonFly because we invest much more in R&D than needed for development of the DragonFly four. The DragonFly four was a machine that the time of development was about a year, and the money that invested in that is very low amount of millions of dollars. We invest much more than we invested in DragonFly because we're developing a set of generation of products moving forward that are beyond the DragonFly four, except it'll take them between a year to three years to be brought into market. Therefore, back to your question, the DragonFly four is sold for a gross margin that's above 60%, which is beautiful and very, very attractive for a machine like that, and it will return the investment easily. The issue is that the amount of money we spend in R&D is not based on the DragonFly IV revenue. It's based on a long-term plan. That's the reason, as I explained before, more similar, you're right, to what you said about the biotech companies, we have enough money to develop the long-term product strategy, including new products, and we're not in a position to be under any cash flow pressure or cash flow that is depending on profitability of the machine. Eventually, the business will get the company as a whole to a profitable return on investment position, but it's not going to happen in the next year. I can tell you that. No, I understood that all along to be a 2023 type or 2024, the inflection points and all that. I think the cash burn, you've hired a lot of people, you've hired a lot of researchers, and I think what is the cash burn on a yearly basis, where you are presently outside of your cost of goods? $70 million. Okay. There's a follow-up question from Jeff Rice of Malcap Investments. Please go ahead. Hi. Thank you again, Mr. Stern. I wanted to interject here. I understand everyone's frustration on the share price. No one, I imagine, is happy right now. We've personally participated in the $12.80 offering for the $500 million. Okay. That's over, down 65% from before. Now, on the long-term vision, I expect us to at least double or triple our investment and profit. While we're down about $300-$400 thousand personally, I expect us to come out on the other side making about $400,000. Now, one thing that we could do is maybe get some insider buys for management. Some Form 4 to show confidence that, "Hey, we back you guys. We're gonna buy in. We're gonna stop the bleeding, and we're gonna reverse this." Now, another thing that we can do is also have more conference calls to get everyone on the same page, because there's a lot of anger and hostility. If we turn on these other things, we're only getting worse. What? Sorry, I didn't understand the last sentence. That we all need to get on the same page and maybe communicate better instead of arguing with each other. I know everyone is frustrated right now. Who is arguing? I had a conference call just 10 days ago. Every how long do you wanna have a conference call? Look. All right. I'm trying to be respectful. How long you wanna have a conference call? Look, it's not an automatic interval, you know. I'm asking. You want me to answer you or you want me. What do you want me to do? What I want you to do is get the stock back over 10. That's what I want you to do. What? I can't hear you. Your line is not so clear. It was not clear before either. I want you to get the stock back to double digits. I'm not getting the stock anywhere, sir. I am a CEO of the company. I am running the business. I am meeting with investors. I am communicating with investors and with shareholders, and the stock is being bought and sold and project a value or project a price. With all due respect, sir. It's negative right now. It's not going to continue to happen. My money is invested here, my time is invested here, and the company is successfully moving forward, and the market will follow on. Is there any protection against the hostile takeover since the company is worth negative dollars right now? There is no protection against hostile takeover because the amount of shares and the volume that's being traded, if somebody were going to start to buy aggressively to get to a significant amount of shares that will give him control, all of you will gain a lot because the stock price will go back to $20. By the way, if it'll be hostile and they will want to replace management, including myself, and on the way there, the stock will go to $20 and all of you will make money, I am the last one that will hold in. I mean, I am a shareholder of a public company and the purpose of me, my purpose is to make sure beyond running the company and making sure the constituencies are happy, including customers and employees, is first and foremost, that the shareholders will make money, and that includes myself. I'm not here to oppose any takeover. People can offer to buy the company or can buy shares in the market before offering. The price will go back to $20. That's all. Okay. Thank you, sir. I appreciate it. There is another follow-up question from Byron Meo of 1031 Private Exchange Group. Please go ahead. Yeah. I'd like to just comment that, in sympathy with what's going with this particular company, I follow all the 3D companies. If you look at 3D Systems, if you look at Desktop Metal, even though they print different things, the whole growth industry has taken a huge hit. Desktop came public at 10, went to 34 or something like that, and it's now $7 or $8 or $7 or $6.5. I mean, what's going on between the growth phase and the macro environment stuff, he doesn't have any control over? What he does have control over is the use of the cash, the cash burn, and the move towards profitability and acquisitions as the countries get squeezed. One question I did have was Austria just went into a lockdown, and now Germany is contemplating going into another lockdown. Do you forecast at least another six months of tumultuousness because of this? Or do you think this is not gonna be as severe as the last ones? Thanks for the question. My guess is as good as yours. I just came back from Germany and Austria while they were on their way to lockdown. It did not prevent me from traveling there and being where I need to be. We are in the process of opening a subsidiary in an R&D and a commercial center in Munich soon. We just purchased, as you know, a company in Central Europe, Switzerland, which is very close to Germany and Austria. We're in negotiation with an Austrian company. We have visitors from Germany and Austria that's supposed to be here next week. Yes, all this can be affected and hold things back. As I said to one of the questions earlier, it's not a strategic holdback, it's a local holdback. I think in the long term, and I speak long term, I'm not talking five years, I'm talking about half a year, a year. Things are in the direction to be better. As I read the news the way you read them about what's happening in the countries that just came back from a day ago and came back healthy, thank you. Yes, it has an effect, but we are looking at this as the environment, and we are looking to find solutions for every effect like that. I believe it's not going to have, call it. It will have certain effect. Thank you. The next question is from Bob Sagarinho. Please go ahead. Yes. My question is about developing technology, you know, co-competition. How are you faring right now with all the competition? I heard mention of a company called ioTech that can handle different types of materials. I haven't really found much of anything else on that particular company. I was wondering if there's, you know, what companies are nipping at your heels, and are you still at least a year ahead of everybody? ioTech is a company with revenue of less than $200,000 a year, maybe less than $100,000. We know them very well. They were trying to sell themselves to us. Wanted above $100 million, we said no. They have an interesting laser deposition technology which we may license from them. They don't have a machine or any competition that is materially affecting us. As you may remember, we have already more than 65 machines, full machines sold with customers around the world. That's not the. They have a very interesting technology, but we're actually working with them. Other than them, we do not see a mature competition as mature as what we have, and it was verified in the Productronica show, which was two weeks ago, ten days ago. We see a lot of small companies, startups that are trying to get there, but not in a material way. Okay. Thank you. Thank you. There are no further questions at this time. Mr. Stern, would you like to make your concluding statement? Yeah. Thank you very, very much for participating. Market is by now, I think, open, so I'm sure all of you needs to go to work. I will follow up as much as one requested with here that I'll do more conference calls. As much as I'm concerned, the more, the better. I just don't wanna take too much of your time, so we'll find opportunities to have as many conference calls. We'll be in touch. Thank you very much. Thank you. This concludes the Nano Dimension third quarter 2021 results call. Thank you for your participation. You may go ahead and disconnect.