Felix Ziegler's questions to Nano Dimension Ltd (NNDM) leadership • Q3 2024
Question
Felix Ziegler of Felix Investments challenged the M&A rationale, questioning the integration of past acquisitions and the strategy of buying cash-burning companies like Desktop Metal and Markforged. He also questioned the company's definition of net cash burn and why the current strategy should be continued given the stock's performance.
Answer
Executive Yoav Stern strongly refuted the premise, calling the analyst's data on past acquisitions "false" and asserting they drove 29% organic growth. He defended the acquisitions of Desktop Metal and Markforged as a classic M&A strategy to buy underperforming assets at a low multiple, create value through synergies, change management, and focus on profitability. He stated that unprofitable business lines from the acquired companies would be reduced or eliminated to improve overall gross margins and create shareholder value.