Good day and thank you for standing by. Welcome to the First Quarter 2025 Materialise Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Harriet Fried of Alliance Advisors. Please go ahead.

Thank you for joining us today for Materialise’s quarterly conference call. With us on the call are Brigitte de Vet, Chief Executive Officer; and Koen Berges, Chief Financial Officer. Today’s call and webcast are being accompanied by a slide presentation that reviews Materialise’s strategic financial and operational performance for the first quarter of 2025. To access the slides, if you haven’t already done so, please go to the Investor Relations section of the company’s website at www.materialise.com. The earnings press release 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 certainties 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 upon 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 20-F filed with the SEC. Finally, management will discuss certain non-IFRS measures on today’s call. A reconciliation table is contained in the earnings release and at the end of the slide presentation. And with that, I’d like to turn the call over to Brigitte de Vet. Brigitte, please go ahead.

Good morning and good afternoon, and thank you, everyone, for joining us today. You can find the agenda for our call on Slide 3. First, I will summarize the business highlights for the first quarter of 2025. I will then pass the floor to Koen, who will take you through the first quarter of financials in more detail. And finally, I will come back and explain what we expect for the remaining months of 2025. When we’ve completed our prepared remarks, we’ll be happy to respond to questions. Now, moving to Slide 4 for the highlights of the first quarter of 2025. To start with, we recently published our 2024 Sustainability Report, sharing our goals, actions and progress on our sustainability strategy. Since the start of Materialise, our key focus has been to make a real difference through additive technology and sustainability has always been part of this mission. As we shared in the report, we set ourselves the target to cut absolute emissions by 55% by 2029, compared to the 2019 baseline. And in 2024, we reduced our emissions already by 32%, which represents a 3% reduction on the 2023 emissions. The most significant change from the previous year was the reduction of almost 700 tons of CO2 in raw materials, reflecting improved efficiency and our constant improvement in our operational processes. And this is a perfect example to show that profit and planet go hand in hand. Now, our key focus in the recent years has been to scale additive manufacturing, making additives easier, faster and more reliable, while enabling more applications of additives. In the first quarter, we’ve made meaningful progress on this journey and I’m very proud that in the current challenging market environment, we managed to grow our revenue in this period by more than…

Thank you, Brigitte. Good morning, or good afternoon, to all of you on this call. I’ll begin with a brief overview of our key financial results, as shown on Slide 5. Amidst the current macroeconomic and geopolitical turbulence in the first quarter of this year, we managed to increase total revenue year-over-year by more than 4% to €66.4 million, while EBIT for the first quarter of 2025 amounted to €0.6 million. The net result for the quarter amounted to a loss of minus €0.5 million or €0.01 per share, reflecting also the impact of significant unfavorable effects from exchange rate fluctuations. Driven by positive free cash flow, we reinforced our net cash position at the end of Q1 to €67.7 million, an increase of almost €7 million versus the beginning of the quarter. In the following slides, I will further elaborate on these results. As a reminder, please note that, unless stated otherwise, all comparisons are against our results for the first quarter of 2024. Turning now to Slide 6, you’ll see an overview of our consolidated revenue. Materialise Medical continued nicely on its double-digit growth path, increasing its revenue by almost 19%. On the other hand, revenues at our Software and Manufacturing segments were impacted by the uncertain market conditions, resulting in reported revenue decreases of around 6% each. At the same time, however, we managed to grow the deferred revenue related to Software maintenance and license fees, coming both from our Medical and Software segments by €1.9 million in this year’s first quarter, bringing the total amount carried on our balance sheet to almost €49 million. As you can see in the graph on the right side of the page, Materialise Medical accounted for 47%, Materialise Software for 15%, and Materialise Manufacturing for 39%, for total revenue over…

Thank you, Koen. Let’s turn to Page 13. I’ll conclude my remarks with a discussion of our full year 2025 guidance. The fundamentals of our business segments are strong, and while we expect the current uncertain macroeconomic and geopolitical conditions to weigh on our 2025 results, in particular in the second quarter, we anticipate a stabilization in the second half of the year and therefore expect to be able to deliver on our earlier guidance. As such, we continue to expect to report consolidated revenue for the full year 2025 within the €270 million to €285 million range we communicated in our prior earnings call. We’re also maintaining our adjusted EBIT guidance of €6 million to €9 million -- €6 million to €10 million for the fiscal year. This concludes our prepared remarks. Operator, we’re now ready to open the call for questions.

Thank you. [Operator Instructions] And our first question comes from Troy Jensen of Cantor Fitzgerald. Your line is open.

Hey. Good morning. Good afternoon. Congrats on the better than expected Q1 results here.

Yeah. Good morning, Troy. Thank you. Yes. Indeed.

So, Brigitte, for you first, just tariff impact. To me, it’s probably not much. When I think about your European business, you print parts out of there and ship them into Europe. And probably for the U.S. healthcare business, you print locally and ship from the U.S. But can you touch on kind of tariff impacts for Materialise?

Yeah. Absolutely. So, with what you just said, you’re absolutely right. It’s really now -- so, there are three things that I would say on the positive side. So, we have our healthcare business with a U.S. Manufacturing plant, which helps us in this situation. Our Manufacturing business focused on Europe, as you said. And then the third one is that Software, as such, at this point in time, is not impacted. Now, where we do see the impact potentially is on our raw materials, because even in our U.S. facility, we will have raw materials that potentially are impacted. That’s one. But the biggest impact is probably the impact of tariffs on our customers. And that is, at this point in time, very hard to say what the impact will be and how customers will react to the climate and to their increased costs. So, but from our side, you’re absolutely right, with the focused operations of Manufacturing in Europe and our healthcare business in the U.S. And I would add Software as the one that is excluded from tariffs at this point in time.

All right. Makes sense. And just talk about -- you talked about Q2 being disruptive here and then stabilizing or back to normal in the second half, so to speak. Can you just touch base on month-to-date? How does Q2 look? Are we going to be down sequentially? Flat-ish? Any insight on what you think Q2 could look like?

Yeah. So, I mean, I obviously can only take the information that we have at this point in time. So, the way we look at Q2 at this point in time is that it’s going to be a bit more difficult. In the first quarter, the start of the month was okay-ish. So, overall, I would expect us to be somewhere more or less flattish on the topline. But there’s a lot of uncertainty in the market, which makes it very hard to predict what the rest will be. There will be pressure on our bottomline in the second quarter. Now, again, as I said earlier, we’ll expect that to stabilize in the second half of the year and not getting out of this. But again, at this point in time, it’s hard to predict.

Yeah. I understand. And then maybe for Koen, I mean, I know we hit this a lot, frequently on these quarterly calls, but Software was below €10 million. That’s the first time we’ve seen it at that level since the beginning of COVID. Just thoughts on growing that business. I do get deferred revs are growing. And then could you also confirm, did you say 80% of revenues in Software are from recurring sales, sorry, a couple of questions together there.

Yeah. No. Thank you, Troy. Indeed, for the first time, we passed the 80% threshold or milestone of our total Software revenues within the Software segment that were of a recurring nature. Last quarter, I indicated we were just north of 75%. So we made quite a big step up in the first quarter of the conversion to recurring revenue. And that is also translating into our reported revenue number. So compared to other quarters, we have deferred more of the sales, of the revenue coming in on the balance sheet. And that impacts also the topline and that is also one of the reasons why we see a lower reported revenue in the first quarter, and indeed, as you said, just below the €10 million point.

Now, maybe just to add one more point on here, Troy. I mean, the fact that we are above the 80% now with our recurring also gives us an indication that we’re getting closer to the endpoint of this transition. Now, by no way saying that the endpoint of this transition is in this year. We know that it takes a couple of years to go through this. But with the recurring revenue above 80%, at least the end of this is in sight somewhat.

Understood. All right. Well, keep up the good work. Good luck this year.

Thank you, Troy.

Thank you. [Operator Instructions] I’m showing no further questions at this time. I’d like to turn it back to Brigitte de Vet for closing remarks.

Well, thanks again for joining us today. We look forward to continuing our dialogue as always through investor conferences or in one-on-ones, virtual meetings or calls. And please do reach out if you have any questions. With that, I want to thank you and say goodbye for now.

This concludes today’s conference call. Thank you for participating and you may now disconnect.