Siemens Healthineers Adr

Good morning, ladies and gentlemen, and welcome to Siemens Healthineers Conference Call. As a reminder, this conference is being recorded. Before we begin, I would like to draw your attention to the safe harbor statement on page two of the Siemens Healthineers presentation. This conference call may include forward-looking statements. These statements are based on the company's current expectations and certain assumptions and are therefore subject to certain risks and uncertainties. At this time, I would like to turn the call over to your host today, Mr. Mark Kurbenick, Head of Investor Relations. Please go ahead, sir.

Thank you operator. Good morning and welcome everyone to our Q1 earnings call for fiscal 2026. I'd like to thank each one of you for joining us today. At 7 o'clock this morning we published our Q1 2026 results. All related material for today's results release are available on the IR section of the Siemens Health News webpage. In a moment, we'll hear directly from our CEO, Ben Montag, and our CFO, Jochen Schmitz. And after their presentation, we'll have a Q&A session. To ensure everyone gets the opportunity to engage, we kindly ask that each participant limit themselves to one question. All the more so as we have quite a tight schedule today with our annual shareholders meeting starting at 10. Additionally, please note that a full transcript and recording of today's call will be made available on our Investor Relations webpage shortly after the session ends. And again, thank you for being here. And now I'd like to turn it over to our CEO, Dan Montag.

Thanks, Mark, and also a warm welcome from my side. Let me start with a brief look at key takeaways from the last quarter. Firstly, we had a good start into fiscal year 2026 and confirm our outlook. Notably, the synergetic part of our portfolio imaging and precision therapy showed strong underlying operational performance in the quarter, especially in light of substantial headwinds from tariffs and foreign exchange. However, diagnostics was affected by material market challenges in China that we did not foresee to their full extent. Secondly, we are fully on track with our preparations for the deconsolidation from Siemens AG. We began the preparation for the demerger agreement and the refinancing necessitated by the planned deconsolidation. In this context, we received a strong investment rate rating from Moody's, a clear milestone for our financial independence that demonstrates our financial strength and the resilience of our business model. And finally, the Elevating Health Globally strategy we presented at our Capital Market Day in November is gaining traction with very good feedback from customers and partners. Before diving deeper into the progress on strategy execution, let me give you my read of the quarterly print. The synergetic part of our portfolio, imaging and precision therapy, is performing very well. Fundamentals are fully intact. Strong 6% growth, a decent equipment book to build of 1.12%, and an operational margin expansion that could broadly compensate for tariffs and FX, that's really an achievement. Diagnostics recorded a revenue decline of 3%. The diagnostics business in China is challenged by material market changes primarily due to volume-based procurement but also reimbursement reductions. Since VVP is primarily price-driven, it does not just lead to decline in revenue but to a significant loss in profit at the same time. The reimbursement reductions impact primarily volume, which means another drag on revenue and conversion on top of BPP. In the Americas, on the other hand, diagnostics is operationally growing again compared to previous years. This growth shows that the Atelika portfolio is gaining traction in our biggest diagnostics market, while the illusion from our shrinking legacy is, as expected, still holding back growth. Overall, the Artelica franchise has grown by roughly 20% in Q1 like in recent years and is now at almost 70% of sales in the important core lab solution business. In Brazil, the diagnostics team renewed the contract with a large strategic diagnostics customer, a major force in the industry whose decisions have an influence on the market, one of the consolidators. Not only was the team able to retain the customer, but the customer is now adding additional analyzers beyond the existing contract, a testament to the strong demand for the Atelika franchise in the industry. Jochen will run you through the financials later. Now let me briefly recap the key elements of our strategy. What moves the world the most when it comes to healthcare are the non-communicable diseases. These are neurodegenerative diseases such as Alzheimer's, cardiovascular diseases, stroke, and cancer. The NCDs are responsible for 75% of all deaths worldwide and are precisely the diseases on which our innovations and growth initiatives are predicated. Our triangle of patient training, physician therapy, and healthcare AI is what it needs to fight the most threatening diseases. From earlier detection, to the right diagnosis, to the right therapy selection and planning, to the personalized minimally invasive treatment, and all this at scale by using healthcare AI. This is exactly what we showcase at RSNA with a series of new launches underscoring our unique clinical relevance. Our AI-driven Syngro CT coronary cockpit tool quantifies plug data and enables deeper insights for intervention planning and treatment by the physician. This AI powered software is designed to automatically segment and label coronary arteries as well as to visualize and quantify plaque types for the entire coronary vascular tree or individual lesions. Combined with the innovations like our photon counting CT and dual source technology, It offers unprecedented clarity and speed of decision-making. In precision therapy, real-time imaging is key for conducting precise and safe interventions. We move MRI into the interventional suite, offering new clinical opportunities in image-guided interventions. This XL MRI system with its excellent soft tissue contrast provides high-performance imaging without ionizing radiation and with exceptional patient access. And last but not least, there is our all-new family of angiography systems. It comes, for example, with an AI-powered reduction of image noise in real time for crisp, high-resolution images, and this at the lowest reasonable dose possible. Now let me come to our second superpower, our unmatched regional organization. Our customer specific organization is very much local, whether it is in all parts of Europe, in Malaysia, in the USA or in China. Our company's strength can be found in all these places. We have the broadest and at the same time also the deepest portfolio. We know how to address departments and medical subspecialties and we know how to address the sea level. With our intimate knowledge of the local situation and our access to the global standard of care, we are perfectly positioned to support our customers to overcome their challenges. How do we translate this into additional business? Firstly, we further expand our footprint in value partnerships, create even more long-term partnerships and become even more relevant to our customers. Secondly, drive clinical transformation along our strength in fighting the NCDs with value programs. Here we are giving support to rethink how workflows, technology and staffing work together. For example, by helping our customers to build a theranostics practice or supporting them to optimize their radiology department or to set up a stroke center. And finally, We plan to further increase impact in emerging countries. Let me give you some examples of how we are progressing on the next slide. Next to a series of other value partnerships, we entered a new 10-year value partnership with Onvida in January, a provider for healthcare in southern Arizona. This value partnership includes a $55 million capital equipment commitment and is expected to exceed the $100 million in total value over the term inclusive of service and solutions. Just a nice example of how we can improve rural health and quality of care in a long-term collaboration. It ensures clinical excellence and access to advanced diagnostic imaging, therapeutic technology, and corresponding services from maintenance to consulting. For our value programs, we see here a strong deal final building up, particularly for cancer treatment programs. And when it comes to increasing impact in emerging markets, we see very good momentum. Vietnam was outstanding. delivering a very strong start with 45 systems across 18 hospitals and clinics, including two photon-counting CT systems in the single month of December. With this, I would like to hand over to Jochen.