Materialise NV

Hello, and welcome to the Q1 2026 Materialize NV Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Managing Director at Alliance Advisors, Jody Berfening.

Good morning, and thank you for joining us today for Materialize's quarterly conference call. With us on the call are Brigitte DeVette, Chief Executive Officer, and Kuhn Berges, Chief Financial Officer. Today's call and webcast are being accompanied by a slide presentation that reviews Materialize's strategic financial and operational performance for the first quarter of 2026. To access the slides, if you have not done so already, please go to the investor relations section of the company's website at www.materialize.com. The earnings press release that was issued earlier today can also be found on that page. Before we get started, I'd like to remind you that management may make forward-looking statements regarding the company's plans, expectations, and growth prospects, among other things. These forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from the expectations expressed, including competitive dynamics and industry change. Any forward-looking statements, including those related to the company's future results and activities, represent management's estimates as of today and should not be relied on as representing their estimates as of any subsequent day. Management disclaims any duty to update or revise any forward-looking statements to reflect future events or changes in expectations. A more detailed description of the risks and uncertainties and other factors that may impact the company's future business or financial results can be found in the company's most recent annual report on Form 20F filed with the SEC. Finally, management will discuss certain non-IFRS measures on today's conference call. A reconciliation table is contained in the earnings press release and at the end of the slide presentation. And now, I would like to turn the call over to Brigitte DeVette. Brigitte?

Good morning and good afternoon. Thank you, everyone, for joining us today. You can find the agenda for our call on slide three. First, I will summarize the business highlights for the first quarter of 2026. Then I will pass the floor to Kun, who will take you through the first quarter financials. And finally, I will come back and explain what we expect the remaining months of 2026 to bring. When we've completed our prepared remarks, we'll be happy to respond to questions. Moving to slide four for the highlights of the first quarter of 2026. As part of our growth strategy, we made decisive portfolio choices in the last quarter that strengthened both materialized and the businesses involved. On March 31st, we announced an agreement to transfer our Rapid Fit business to its management team. Rapid Fit is a specialized business that delivers custom 3D printed jigs, fixtures, and quality control solutions, primarily for the automotive industry. RapidFit will continue as an independent company under the same leadership and under the RapidFit name, allowing the business to operate with greater focus and flexibility as it enters its next phase of growth. This setup enables RapidFit to make decisions closer to its customers and markets while allowing Materialise to concentrate investment and leadership attention on our focus segments. Today, We are announcing a similar step for our eyewear activities. We have reached an agreement to transfer our eyewear business to its management team, allowing it to continue as an independent company. Eyewear is a highly specialized, product-driven business serving as a distinct consumer market. The transfer will allow a new company to operate with greater focus and agility. Materialise will retain a minority stake in a newly formed eyewear company. For Materialise, this decision reflects the same strategic rationale, ensuring that the eyewear business operates in the environment where it can succeed best, while we concentrate our capital and resources on our focus areas. All employees currently supporting the rapid fit and eyewear business will transition to the new companies. Both businesses were part of our manufacturing sector. Financial terms will not be publicly disclosed. Turning now to the highlights in the medical segment. Starting with our CMS market. In February, we expanded our cranio-maxillofacial portfolio with the addition of custom-made PEEG implants. PEEG is often favored by surgeons because its radiolucent nature means it does not appear on imaging the way metal implants do, enabling clearer post-operative scans. Until now, surgeons working with Materialise had titanium as their patient-specific option. With this launch, they have an additional choice. The new offering integrates seamlessly into our existing digital workflow and completes our offering. Surgeons don't adopt a new process, a new platform, or a new partner to access Peak. And this demonstrates the power of Materialise's integrated digital ecosystem. It absorbs new clinical capabilities without adding complexity for the surgeon or the hospital. The custom-made peak implants are now available to surgeons across most European countries. Also in our orthopedics market, we launched OptoView 3D HIP, completing our templating and planning portfolio to serve patients along the full patient continuum of hip surgery, from standard primary hip interventions to more complex surgery. OctoView has long been helping surgeons plan procedures with precision based on x-ray imaging. With OctoView 3D HIP, we're taking that platform beyond x-rays, moving from 2D to CT scan-based planning, enabling a far richer picture of the patient's anatomy before they even enter the operating room. Also in this case, Surgeons do not need to adopt a different process, tool, or a different partner and can serve all patients from the same materialized ecosystem. What makes this launch particularly significant is that it reflects Materialise's unique ability to bring together capabilities from across our portfolio. OctoView 3D HIP combines the deep orthopedic domain knowledge of OctoView with the proven segmentation and anatomical modeling power of our MIMIX technology. The result is a guided workflow that gives surgeons the confidence to plan every case with its accuracy and precision. Both product launches showcase our innovative strengths. in mature market segments, and underscore the position of our ecosystem in the METEC market. Turning to software now. Back in November, Materialise introduced three tailored CoEM solutions to address the industry's growing need for workflow automation and interoperability. CoEM Professional, CoEM NPI, and CoEM Enterprise. Alongside these offerings, we also announced Goyambrix. Goyambrix puts our extensive software expertise in the hands of every user by making it easy to automate complex, recurring processes and eliminate repetitive manual work without requiring advanced programming skills. In the first quarter, we ran an early access program with selected Magix customers, giving them hands-on experience with the CoEM Professional offering of the CoEM platform. At the start of the second quarter, we started a pre-sales program for Magics customers approaching their renewal cycle. We now have seven customers actively onboarding CoEM Pro in May, with full global availability expected from mid-June this year. CoEM Professional is our cloud-based software for managing day-to-day 3D printing operations more efficiently. The pro version is built for teams with multiple users running several machines across different production sites. It gives teams access to centralized AM data, hence share one source of truth across teams. It also enables easier collaboration across departments and allows users to run repeatable machine agnostic operations, thereby helping customers grow their AM operations from ad hoc use to repeatable production with less manual work. Also, in the first quarter, we continued to expand our partnerships. As a particular highlight, I would like to mention the collaboration with HP. As a recent rapid TCT form, HP unveiled the MGF1200 3D printer. As part of this offering, Materialized Magic Sprint for HP will be included with every machine, ensuring users have access to professional build preparation and workflow capabilities from the start. The MagicSpring for HPE is a dedicated build preparation software that provides professional-grade tools for nesting, part orientation, and build layout, enabling customers to prepare builds quickly and efficiently from day one and simplify the path from design to printed parts. Builder materializes proven software foundation. The solution is designed to grow with customers as their production needs evolve. The collaboration on the MGF-1200 continues the long-standing collaboration between HP and Materialize. At the same time, it gives Materialize broader access to the lower to mid-range market segments, at which the MGF-1200 is targeted with its system price below $60,000. This aligns with a broader market shift where additive manufacturing is moving from specialized applications into more mainstream manufacturing workflows. The full solution will be available starting in early 2027. Before we move to the first quarter financials, I want to mention two other recent highlights. First, we published our first annual report following our listing on Euronext back in November. The annual report is a European reporting requirement and is now available on our investor website. Secondly, We completed our CSRD sustainability reporting, demonstrating strong progress on our sustainability commitment. I am proud to say that we exceeded our reduction target for greenhouse gas emissions, achieving a total reduction of over 1,500 tons of CO2 across our operations overall rolling two-year cycle. A couple of drivers contributed to this. We switched our standard pH-12 material used in selective laser sintering to a carbon-reduced version. This change became operational in the first quarter of 2025 and translated into an annual saving of over 450 tons of CO2. At our headquarters, the solar park built in 2025 now generates over 40% of the site's electricity needs, significantly reducing reliance on external energy sources and lowering scope 3 emissions.