SCHMID Group N.V.

Ladies and gentlemen, we warmly welcome you to the H1 2026 results conference call and webcast of the Schmid Group. I am pleased to welcome the CFO Arthur Schütz and CSO Roland Rettemeier, who will guide us through the presentation shortly, after which we will move on to Q&A session. Before we begin, I'd like to remind everyone that today's discussion will contain forward-looking statements within the meaning of applicable securities laws. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to our filings with the U.S. Securities and Exchange Commission, including our annual report on Form 20F, for a discussion of these risks and uncertainties. We undertake no obligation to update any forward-looking statements except as required by law. In addition, today's discussion may include certain non-GAAP financial measures. Reconciliation to the most directly comparable gap measures can be found in our earnings materials and findings. And with that, I'm handing over to you, Arthur.

Thank you, Mara, and good morning, good afternoon, everyone. I'd like to start by giving you the headline picture of the first half of 2026. In short, this has been six months of significant transformation We've repaired the balance sheet. Our cost program has been executed. We're seeing real momentum in order intake. Let me walk through the four numbers that tell the story. 33 million euros of new net capital was raised to our convertible and SEPA. 31 million euro of debt was reduced to a debt to equity swap announced in May. 4 million Euro of fixed costs were taken out through our sprint program. And 52 million Euro of orders we saw in the last eight weeks. 2026 remains a transition year, but the foundation is now in place for a strong second half of 26 and a promising 2027. Let me now walk you through the P&L of the first half. First of all, the Q1 was a slow start. It tends to be seasonally weak, but it was weaker than expected. We've seen 18.2 million revenues in Q1, which increased to 27.8 million revenues in Q2. Out of this, equipment revenues was 10.7 million in the first six months last year, which was a very weak half year, to 39.4 million in H1, 2026. Spare parts and services increased their revenues from 5.9 million euros to 6.4 million euros a year. Our cross-profit margin of 21.2% was lower than expected. This is partially just the lower scale. But then also a shift towards China, where we have slightly lower margins and which we expect to reverse in the second half to more German production based revenues. Our G&A expenses increased by more than three million euros because of the spread restructuring, share based compensation and capital structure items. I will talk more about that on the next page. Other income and other expenses include about 1.7 million Euro foreign exchange losses. This was 6.3 million gains in the first half of 25. The financial results losses reflect the accounting treatment of the XJ Harbor liability, which we converted into shares in January. And to a lesser extent, also the fair value movements of the company's warrants. It also includes, for your information, about 875,000 of interest on our debt. Now let me move to the next page and walk you through how we get to our adjusted EBITDA. So the adjustments include about 420,000 euros of sprint restructuring costs. Share-based compensation reflects 2026 and 2027 C-level rewards for shares and options under IFRS. These had to be recognized mostly in H1 of this year. Capital structure restructuring costs reflect the fact that we had two 20F filings this year, this half year. We are still under the NASDAQ monitoring period, which means higher filing requirements until February 2027. We also had some costs that came with the debt to equity conversion. Let me now talk about our Sprint program. So we concluded Sprint 1. We reduced headcount for full-time equivalents of more than 40 in our German overhead functions. Most of those departures will happen in Q3. We had or we will have about restructuring costs about 700,000 euros, of which, as I mentioned, 400,000 was expensed in the first half. This is mostly for paid leave. Again, running into Q3 mostly and then some small severance payments. The run rate has been achieved of about 4 million Euro expenses, savings in labor costs. And this also reduces our fixed costs and lowers our break-even point. Now we have started moving to the second phase of our Sprint program, which is a purchasing cost savings program. More than 50% of our total expenses are purchasing materials. And our target for savings are 5% of those purchasing expenses, at least 5%. As we now see a period of increasing volumes for purchasing, this is a good time to renegotiate terms and conditions. We think that most of those 5% minimum savings we can achieve by year end. However, we also redesigned some high-cost components and this design to cost will take us a bit of time and will be more something for 2027. Let me then walk you through cash flow and working capital. We had 29.3% million euro of operating cash outflow in H1, which was mostly the 26 million euro of investments in working capital. As you can see, we had negative working capital in December of last year, and we're now at about 14% of LTM sales by June, end of June. Now, medium term, we think we can reduce this back to more something like 10% or less. We also believe that the absolute amount of working capital is something that we can keep flat or reduce by year end. We spent about 800,000 euros on capex. We're typically running at 1.5 million of annualized capex. Obviously, in the second half, we will start seeing some of the spending on the Chinese factory, which in total will be for about 11 million. And this is land plus building. It's not so much the machineries that we effectively have already. And as I mentioned before, we raised about 33 million euros to the convertible and the standby. That leads me to the balance sheet. We did a 30.75 million debt to equity swap announced in May. This meant the total debt has been reduced from 53 million to about 23 million, which we believe is a sustainable level and also means that we actually now have some debt capacity and can fund some of our growth in debt rather than in equity. Additionally, obviously, we have this convertible, the Black Forest convertible, 2.5 million euros that matures in March. Of the $30 million convertible issued in January, $11 million are remaining. And we have $20 million convertible that was raised in July. As part of the Convertible financing, we now have additional debt capacity for China as long as this is non-recourse to Germany subsidiary or to our top code. So that means, for example, the Chinese factory can be financed on a non-recourse project base of debt. We can also raise additional working capital or bank loans up to the 20 million euro level. The average cost of funding for our Chinese debt, the new debt, will be around 2.7%, so very attractive rates. Additionally, we still have $21 million of standby equity remaining. We have not drawn on that in the second half of this year and are not intending to draw on this for the rest of the year. With that, I now hand over to Roland who will give an operational update and talk about our order intake situation.

Thank you, Arthur. Let me give you an operational update. We executed well in the first half of 2026 and we also delivered one of our first Infinity Line H Plus for 700x700 mm panel level packaging to a US-based customer. In addition to that, to grow with our customer, we decided and started to consolidate and expand our Chinese manufacturing campus. We will move the currently leased two locations to one bigger Schmidt-owned manufacturing campus in Zongshan, Guangdong province, which is the same province as today. And with this, we are consolidating our current operation and will double our production capacity in China. The total investment is about 11 million Euro and the new facility is expected to be operational by Q4 2027. Our Malaysian facility is successfully established, up and running and currently expanding to fulfill the demands of our growing key customer in this region. Our order intake is accelerating. In our investor call in May, I have stated that Q1 was rather slow due to new factory planning of our Flipchip BGA substrate customer and that I expected some momentum in the market through Flipchip BGA substrate capacity investments in the second half of 2026. We already recognize this momentum in late Q2 and we do see continuing market demand through the rest of 2026 and the fall 2027. Due to these FlipGPGA substrate and continuing AI server board capacity investments, we already achieved a 52.3 million Euro order intake in Q3 and are totaling out to 96.6 million order intake year to date. These high-end equipment orders also balance the loading of our German and Chinese manufacturing locations, as Arthur has previously explained. We published and raised our order intake guidance for 2026 in July this year to 125 to 150 million Euro. And based on what I currently see and information I have, I do expect us to land in the upper area of that guidance. With this, I'm handing back to Arthur.