Good morning, ladies and gentlemen. Thank you for joining our earnings call for the first half results 2026 here at Barco.

My name is Willem Fransoo. I am Director of Investor Relations, and here in the room with our CEO, An Steegen, and the CFO, Ann Desender Smedt.

We will present first our results, which will take about 20 minutes, and after that, we will open for questions. I will give the word first to our CEO.

Thank you, Willem. Good morning, everybody.

Let me start with a summary of the results of the first half of '26. Orders came in at €468 million, that's 4% lower than last year.

When we calculate that at constant currency, it's flat. Sales landed at €480 million, 8% below last year, 3% if you calculate it at constant currency.

After a difficult first quarter, we saw the momentum improving in the second quarter, where we saw orders picking up towards the second half of the second quarter. Also worth mentioning is that diagnostic imaging, as well as control rooms, really stood out for their solid performance throughout the first half year.

Order book is now at €568 million, that is up, that's up compared to the the end of '25. We at that point were at €492 million.

This, of course, gives us again a a solid basis for the quarters to come, a solid foundation for the quarters to come. We also integrated now after the successful acquisition of Vervent Audio Group, we integrated Vervent in our Entertainment division.

They form now a six, a third BU under Entertainment, called Consumer Experience. For the two months that Vervent has been reporting into the Barco financials, they also basically showed solid growth.

Then we have also the gross profit margin. Gross profit margin was resilient despite some product mix effects that we saw.

EBITDA landed at €26 million, that is 6%, 6% of sales, and that was mainly driven by the lower top line and and the resulting operating deleverage that we saw from the lower top line. Now for outlook for the year, management expects, expects and reconfirms basically that we will basically grow sales over last year, including Vervent, and our EBITDA, we expect to land between 11% and 12%.

Now I'd like to hand it over to Ann Desender Smedt for some more financial details.

Starting on the top line, orders and sales. As indicated by An, orders ending in line with last year at constant currencies, sales at constant currencies 3% below last year.

If we look to the different regions, in EMEA, orders below last year, sales -5%. There, as well in the first and second quarter, have been largely impacted by weak investments climate linked to the Middle East, and not only, I would say, the shipments that we have towards the Middle East, but also a lot of our customers in Europe having impact on that one.

Americas saw a recovery in the second quarter, also after a difficult first quarter, quite a nice uptake in the second quarter, and actually landing then already at same level sales as last year's second quarter. Looking to the orders in the Americas for the first half 8% above last year.

Two that are standing out in there actually is both Enterprise and Entertainment. On the figures which you see here, orders and sales on the Americas, +8% and -11%, this is reported on the sales, the biggest impact we have there from currencies, as you do know.

APAC also saw a better second quarter than the first quarter actually, with in particular order and sales growth in the second quarter for both Healthcare and Enterprise, as well as actually good momentum with Consumer Experience, Vervent. Vervent, who all in all actually had a very nice quick start actually the first two months that were included in our figures.

Landing at an order book at mid-year of €568 million, up €67 million compared to the beginning of the year, in the €67 million including about €15 million of Vervent, our newest acquisitions, and then for the rest, a nice growth particularly in Cinema and in Control Rooms. When you look to the EBITDA bridge from last year to this year, FX has an impact more on the top line, quite contained with negative on our EBITDA, so that's to the tune of about €3 million.

Vervent brought in the first two months part of our group a positive contribution to our EBITDA. The big down and impact is actually on the lower volumes of the lower sales which we faced, in particular in the first quarter.

We could contain our gross profit margin despite the lower volumes, and that is coming with mix with more sales and service, with more recurring revenues, which recurring revenues actually as to the total of our sales is now reaching 13% of our total sales, all helping in that one. OpEx, diverse cost measures have been taken.

Largely the impact will be in the second semester. In the first semester, those were offset by R&D investments, and particularly in Healthcare and in Meeting Experience.

Then we have quite some, yeah, one-off others impacts actually, including in there acquisition costs, and then purchase price accounting impact in there, last year some other income relatively with grants also included which do not have this year. That's all then making the building blocks and to explain the lower EBITDA compared to last year.

Lower sales actually and FX and one-offs hampering, but we could contain our gross profit margin and a good first contribution of Vervent. When we look further down into the P&L from EBITDA to net earnings, depreciations are evolving primarily as we further built out our cinema-as-a-service portfolio, depreciations and amortizations at €25 million in the first semester.

We did take restructuring costs and restructuring measures which, indeed, will have an incremental impact in the second semester in our P&L, total restructuring cost €8.4 million except for €1 million that will have a cash effect. The biggest one is the closure of the R&D facility in Norway, and then diverse other changes actually across the regions with biggest impact here in Belgium.

Then interest income some lower than last year as we changed actually from a net cash to a net debt situation after the acquisition of Vervent. Income taxes, effective tax rate constant at 18%, and with that, landing at a net result of -€4.8 million.

Moving over to free cash flow, free cash flow in the first semester, -€37 million. The big impact there, and that's also immediately all the big focus area for the second semester, is higher inventories, which we have.

Gross operating free cash flow landed at €20 million. This is after €4 million of restructuring costs already paid.

When looking at our working capital, the increase is primarily situated in inventories, €57 million higher and impacting on the free cash flow compared to the beginning of the year. The bigger impacts are in Entertainment actually.

We've taken advanced purchase of components and memory chips where there are price increases, and to be ahead of those to also secure our gross profit margins in there. This being said, we also landed with some more finished goods than we wanted in view of lower-than-expected sales.

The average payment terms of customers and suppliers are in a good balance, meaning DSO at 73 days, DPO at 81 days. Capital expenditures, €15 million in line with last year, million higher, including the bigger ticket items there, the automation in our factory in Kortrijk here, and then cinema-as-a-service included, like we had also in previous years.

Our net cash position has shifted to a net debt position, €33 million mid-year. This is after the cash-out for the Vervent acquisition for an amount of €134 million cash-out, €44 million of dividend, €11 million of share buyback, and of course, the impact of the free cash flow in the first semester.

Looking to our sustainability KPIs, going there strong and with a consistent progress actually on the different KPIs. Eco-labeled revenues at 77% of our total sales, a further increase of 1% versus last year, and well on track towards our targets set actually, with, yeah, helped by the new portfolio of immersive experience, Healthcare, and across the divisions actually.

Of course, Control Rooms shifting more to software is certainly helping there out as well. Pointing at our net promoter score as well, stood out at 66, another six percentage points up compared to the full year of last year.

We do an extensive inquiry on this customer NPS twice per year actually and are happy to report an steadily increase actually in that performance. Very happy customers, we just would like that they even buy more.

With that, moving it over to the divisional updates, and An will give some more color on that. All right.

Let me start with Entertainment. We saw resilient performance in Entertainment, sales landing at €199 million, it is 5% below last year, but orders 3% up to €243 million.

From EBITDA perspective, we landed at 8.4% of sales, which is two percentage points lower. Partially that's driven by the lower top line, also some of the acquisition costs, and we are already partially also offsetting that with some of the cost measures that we took in the first half, but we'll see more of that in the second half.

Now zooming in on Cinema, solid performance in Cinema. I think with the movie slate getting better, that is always a good sign for exhibitors to resume their lamp-to-laser replacement wave, which we also see.

China, though, remains soft, but we could cover actually with replacement waves in the other regions, we could cover for the shortfall in China in Cinema. Also, our HDR by Barco, our new premium cinema solution with the lightsteering projectors is very well on track.

We basically have now more than 100 systems that we plan to have installed by the end of the year. We see that a lot of momentum building up with the studios.

Today, we have already secured more than 45 blockbusters, if you compare that to last year with about 35, which is definitely a good sign that people appreciate actually what they see in HDR by Barco. Also not to forget, this comes with a new business model for us, we're not only selling projectors, but we're also basically now a bigger share in the cinema value chain with recurring revenues.

Then for our Immersive Experience, well, we're very proud to say that we are now the number one in DLP projection in Immersive Experience. Now, we saw softness in the rental market.

That was definitely also driven by the situation in the Middle East. At the other hand, we see stable performance in fixed install, and there definitely theme parks is continuously growing and is definitely proving to be a very strong growth pillar for Immersive Experience.

Now towards the second half, of course, the situation in Middle East needs to get better, but at the other hand, we're also launching new products. There is our I600 mid-end projector series that we are launching actually in September, and more features on Encore3, which will also continue to boost our Encore3 platform.

From Vervent perspective, as I mentioned already before, Vervent is now integrated as a third BU in the Entertainment division. Very solid performance in the last two months, driven by their premium headphones and also their automotive audio solutions, where they basically provide technology license to the automotive sector.

Here again, for us, this is a good indication already that merging visualization and audio is the right way to go to provide growth in our Entertainment division. Over the longer term, we truly believe in the growth of Entertainment.

I think we have the right ingredients to really be a key player in the entertainment market that start with technology leadership, technology breadth, market leadership, a premiumization wave that is going on, especially in cinema, but also in the consumer space, and then, of course, the customer contacts, the customer relationships that we have. On top of that, of course, the expansion, where we are not only going to focus now on visualization, but also on audio solutions.

Which basically, if we go to the next page, on Vervent, again, the strategic plan, why we acquired Vervent, is because we truly believe that a true entertainment experience is a combination of visualization and audio. This is also consistent with what we have said during Capital Markets Day, that we are going to go all in on entertainment, because by adding audio, of course, we can tap into a bigger addressable market in the entertainment sector.

Now we have three objectives with this acquisition. The first one is clearly growth, and that starts already short term by bundling Barco solutions with the audio solutions for the consumer market, especially in home cinema.

There we have the projectors available, they have the audio available, bundling and combining, of course, the technology, but also our go-to-market channels there to create extra growth. In the longer term, we will also work on audio solutions for Barco's professional market, in Cinema and in Immersive Experience, and that, of course, also will create synergy and a bigger ecosystem play for Barco in those markets.

That's number one. The second reason is innovation.

Both Barco and Vervent, we are engineering companies, we're technology companies. They basically know best what to do in audio processing, we know best what to do in image processing, and we truly believe by combining image processing with audio processing in the future, and also the system integration, because both of our companies are, of course, experts in system integration, that we can come up with solutions which the two of us separately could not do.

The third one is brands. Barco has, of course, a brand in visualization, but Vervent Audio has two very iconic brands, Focal and Naim, and they are very well known in the audiophile market, but also in the high-end home market.

They're further expanding actually in what they call lifestyle applications, also in the automotive sector. That is, of course, where we will leverage and preserve the brands of Vervent.

In the professional markets, once we start adding audio to the professional markets, then, of course, also the Barco brand is very well known in those markets. That is basically our main focus and the main reason why we acquired Vervent.

Let me then move to Enterprise. We saw mixed results in Enterprise, continued softness of the BYOD market in Meeting Experience, but that was offsetted with a very solid performance in the Control Room market.

When you look at the numbers today, orders landed at €115 million, which is 5% up, mainly driven by Control Rooms, and sales is down with 9%, landing at €98 million, mainly driven by the lower top-line sales in Meeting Experience. Gross profit margin did go up with two percentage points.

Also here, having more software in the mix, mainly coming from Control Rooms, is adding to our gross profit. EBITDA landed at about 6% of sales, mainly driven by top line and lower top line in Meeting Experience.

Talking about Meeting Experience, we see continued softness in the BYOD market. This is already now a couple of quarters that we see that.

Overall, the market is slower. We see replacement waves also being slower.

We did not grow in the first half in EMEA and in the Americas. We saw a slight grow in APAC.

Meanwhile, we have launched, of course, our ClickShare Hub, which is our Microsoft Teams Rooms system, and that's gradually getting adopted by the market. Here, we're certifying more bundles, and what that means is that we combine our ClickShare Hub with the video bars and the cameras of third parties.

The more bundles we certify, of course, the more reach we have. On top of that, we're adding also more features to ClickShare Hub.

The last one we now launched was the BYOD switch that we implemented on our Microsoft Teams platform so that you, depending on the type of meeting you have in one meeting room, you could switch from a BYOD setting to an MTR setting. These extra features, also the extra bundles that we're certifying, is definitely going to stimulate our ClickShare Hub sales for the second half.

Moving on to Control Rooms, so that was definitely the highlight of the first semester. As well orders as sales did grow in all regions for Control Rooms.

That was a combination of our control platform, but also the UniSee Wall, the LCD wall, as a replacement wave that we're introducing for the rear-projection cube right now. The control platform is doing extremely well.

That represents now already 43% of the total sales and is growing rapidly year over year. That reinforces basically the strategic decision that we took a couple of years back, that we said in Control Rooms, we're going to really focus on that software-based secure control platform, which we're migrating now to what we call an KVM-over-IT system, and this is what the customers seem to want, because they want to basically software-base connect people, different systems, and different sites, and that is now exactly what the control platform is catering to.

Then moving to Healthcare, here definitely mixed results, solid performance in diagnostic imaging, but a very weak performance in Surgical. If you look at the numbers, orders at €109 million, down 23%, sales at €121 million, down 12%.

If you look at the EBITDA, well, very low, €3.5 million, and that only represents 3% of sales. Main reason for the low EBITDA is, of course, the lower top line in Surgical, is also the fact that we are transforming Surgical, and I'll give you in a minute more explanation on that, which meant that we need to keep on investing in R&D, and also that all the OpEx savings actions that we took already, but the majority of that impact that we're only going to see in the second half.

Let me start with diagnostic imaging. For diagnostic imaging, very solid performance.

We see the replacement wave in radiology and in mammography really getting traction. We are the leader in those markets.

We're recognized as a leader. We have very high-quality products now in the field, and we feel basically with a large install base, and we feel the trust of our install base in renewing their portfolios.

Also in digital pathology, we're doing very well. As digital pathology is a little bit later in the digitization wave, as we call that.

We're going to this market with as well hardware solutions, which are the pathology displays, but also software solutions which were developed within Barco. SlideRight QA is the one that we explained to you last time.

This is now an AI use case to improve the efficiency in pathology labs. The combination of these two is really opening doors in pathology world.

We're seeing a lot of traction. It's an emerging market, but we see a lot of traction, and we believe that Barco is one of the first movers in that digitization wave, and we basically want to really take a share of that and also grow in this market.

Which brings me then to Modality. As you probably remember, end of last year, we made an organizational change that we moved Modality with the operational center in Suzhou in China.

The main reason to do that, because Modality for us, that is custom displays for OEM, large system integrators in the healthcare world. This is a very competitive market.

Cost and being cost-conscious is really key in this market. That is the main reason why we moved this to Suzhou, and we see there our business stabilizing.

We see basically new projects, new contracts coming in. Definitely there, we can confirm that moving this operational center to Suzhou was the right move to do.

Then we come to Surgical, and the surgical market is weak. We, as mentioned now already a couple of times, we are losing big contracts.

Typically in Surgical, they're very big contracts. They are for years when you're designed in, and it turns out to be extremely difficult to replace these big contracts in a short period of time.

We are putting all hands on deck there to basically fix this. That means building up customer relations, working on new projects, which also mean new products that we need to develop.

There we've, for instance, focusing on what we call Nexxis Cube, which is a mid-end solution for the Nexxis market, new display types, also and some of it where we're introducing edge compute so that we can run real-time applications on that system. All of that takes time, as well the trust, as the development, as the design-in cycle with these large system integrators, it takes time.

We have taken more measures in Surgical, and in Healthcare in general, we have moved now the entire Healthcare division under one leadership. That's under John Zhao, who was leading Modality in China.

The reason why we do that is to avoid fragmentation, to simplify the organization, to speed up decision-making, and definitely also to improve execution discipline. That's combined now with the new portfolio we're building, with also our migration into more software, which is definitely already happening in diagnostic imaging, but will also happen in Surgical.

This gives us confidence that we will turn around Healthcare and that we also here have the right ingredients to turn this around and turn this back into growth. That said, maybe a very quick recap on our strategy.

This is what we also showed you at Capital Markets Day, and it's what I have repeated now already for our divisions. For Barco, we have multiple layers.

Historically, we, of course, started with hardware. We built and pioneered definitely in network solutions on top of that.

More and more, we will differentiate actually in software, and that starts with adding edge compute to our hardware, and then, of course, building software applications on top of that. That is still very consistent, and I think you see this strategy returning in many of our businesses moving forward.

Then our priorities for the second half. It's of course about bringing new products in the market.

This just gives you a summary of the product launches that we did the last 18 months, and as you can see, there are very big new platforms that we have brought to the market at Barco. There is HDR by Barco, which is, of course, a completely new cinema premium solution.

There is Encore3, completely new event switcher solution. Nexxis Cube, the mid-end solution for Nexxis.

New displays going from a OneLook, to the 8 megapixel NDI, to a 3D monitor screen with diagnostic applications. ClickShare Hub, completely new platform.

More to come: Brilliant Assist, voice control, surgical displays, more to come here. We have not been sitting still in bringing these new solutions to the market.

That sometimes takes some adoption time, but I think we're on the right track here. Then that brings me to our focus areas, of course, for the second half.

We continue our innovation, where you will see more software and AI coming in. That also means that we are going to strengthen and make sure that we can maintain our leadership position in our core markets, where we see the best strategic fit.

We will also sharpen our focus and our investments on businesses where we see structural growth into the future. Last but not least, of course, also towards the second half, cost discipline and making sure that we introduce the right organizational efficiencies is key also to maintain our profitability.

Which leads me to the last one, which is the outlook for '26. Here geopolitical instability and uncertainties continue to impact demand and visibility throughout the first half.

Management expects full year sales above last year, including the recent acquisition of Vervent Audio Holding, and an EBITDA margin in the range of 11% to 12%. With this, I'll hand it back to Willem for Q&A.

Yep.

Thank you very much, An and Ann, for this presentation. I think we are ready for the Q&A, and you can raise your questions by hitting the raise button at the top of your Microsoft Teams window.

If you have more than two questions, we ask you then to queue again for a second round afterwards. I see that Marc is the first one, Marc Hesselink with a question.

Marc, you can unmute yourself and go ahead.

Yes, thanks. First question is on the guidance, let's call it the implicit guidance for the second half of the year, which basically implies a very significant improvement versus the first half.

There's normal, with your seasonality, but I also think that will be higher, if you take the midpoint of the guidance, higher than last year, which seems a bit of a challenge. When I know you have talked about cost cutting, but maybe can you walk us through how you can achieve the midpoint of your guidance range in the second half of the year?

It's actually based on primarily three or four things, being in the second half there will be six months of Vervent where we have in the first half two months, so that has an impact. We saw on the top line of our core business the second quarter a better momentum already, especially already picking up and being at same level of last year in the Americas.

In that sense, that's where we then have the outlook on the top line for the second semester in there. This on the two divisions actually.

Gross profit margins were resilient in the first semester despite a lower top line. In that sense, further, I would say, keeping and even further improving that one.

Then it's about operating leverage, operating leverage on that higher top line actually. Not only operating leverage, but also we took quite some cost decisions actually in the course of the second quarter, which then have an accelerated impact in the second semester.

It's a little bit all of that together actually that makes up for the far better, I call it, normalized result in the second semester.

Okay. That's clear.

Thanks. My second question is actually on your '28 guidance, the 15% margin.

Just conceptually, the businesses as they are today, and maybe structurally some additional weakness in ClickShare, is that still achievable and is that in that time frame, because that will imply very significant improvements in the margin over the '27-'28 period?

We basically hold our guidance for '28, we basically believe that we can achieve the 1.1. The portfolio mix, as you know also, the focus that we're putting today in our businesses and how the portfolio mix is going to turn out might be slightly different.

We're adding also Vervent to that one. We in general think with all the actions that we have in place and all the strategic road maps that we have in our businesses, that we can hold to our guidance of '28.

Maybe as a follow-up, the 1.1, because that excludes Vervent, right? That was organic, the 1.1, right?

Yes, but now, of course, because Vervent is now part of our portfolio, we constantly optimize our portfolio. That is what we need to do in the dynamics that we see in the market today.

By '28, it's part of the portfolio, and that is, of course, included then,

hey. Thanks.

Thank you, Marc, for these questions. Any other questions from other people in the room?

You can raise your hand by tapping the hand at the top. We see a question from Trion.

I will allow you to unmute yourself. Trion, you may unmute yourself and ask your question, Trion Reid from Berenberg.

Thanks, guys. Hopefully you can hear me okay.

I just had a first question about the component prices, and obviously that's the reason why your inventory's gone up. We've heard all about sort of memory shortages and prices going up.

How do you think about dealing with that coming forward in terms of increasing your own prices? What impact will that have on demand?

You mentioned your NPS score going up. Does that leave room to increase prices without impacting demand in the future?

Of course, hey, we are sensitive to memory and memory shortages, and the price increases there. One action we took already, we have already bought quite a supply so we can last for at least a couple of months and this year with the supply that we have.

Wherever we can, we basically include that in our price. We basically include that in the price.

Sometimes that's a little bit also a timing effect when you increase the price, but we've seen actually our competition also increasing prices. When you do this collectively and your competition does it too, yeah, then it's just an effect of the market that everybody needs to swallow.

Back to your question, will that impact sales and will that slow down sales? Far, depending on the business, we have not seen these effects in, for instance, the Cinema, or a Control Room, or a diagnostic imaging.

The one that we have to watch out for is, I think, ClickShare, especially also the new ClickShare Hub platform. It is a Microsoft platform that uses newer generations of memories, and there it's to be seen also how the competition, some of them are already increasing their prices, how they behave, and then how the market is going to react to that.

That's great. Thank you.

Just maybe a second question just on Vervent. Obviously adding audio, we can see that, and you talked about the future adding sort of professional audio products, right, to your cinema and maybe Immersive Experience.

How long do you think that will take? Is that still within the 2028 sort of longer-term timeframe, or do you think it's going to take longer to develop those new products?

Because the integration is in progress and we're making very well progress. We focus first on the short-term things, which is the bundles, where they have the products, we have the products, that's then for home, mainly, yeah, for home cinema.

For their professional audio, they need to make modifications to their current portfolio. Those road maps are being built right now.

We typically say two years, and then maybe in the market in the third year, which will be at the outer, yeah, edge of the three-year guidance, yes.

Great. Thank you.

Thank you, Trion, for these questions. Any other questions from the room?

You may raise your hand. Trion?

Trion, you have more questions, please? Go ahead.

I'll come back, yeah. If everyone else is too shy, I'll ask a couple more.

Just first of all on Vervent, I was just going through your reports, and you talked about the sales and EBITDA contribution, and I think if we exclude acquisition-related costs, it was sort of €3 million if it was for the whole of the H1 period, right, on €51.5 million of sales. If we sort of annualized that, it would imply an acquisition price of 21 times EBITDA, if my math is right, which feels quite high, especially compared to your own valuation.

Any comments on the price that you paid and how you justify that and how you expect to generate a good return, that would be useful.

One of the things is also it's not only EBITDA, it's also revenue. When you look at the revenue multiple, then we are, yeah, close to the 1.2x multiple.

That is one of the things that was also driving that. Then there is, of course, also things that we're going to have to do today on the improvement of the EBITDA, and how we can basically also get them to the 15% level that we for Barco have as our end goal.

Is this expensive? Not

cheap.

It's not cheap, that's true. We truly believe that the value is there, that we create the effects and the value by merging the visualization and the audio together, and that actually this 1 + 1 is 3 effect, that we will see this in the growth that we can present actually the coming years in Entertainment.

That, I think when we look at that goal, then we say, okay, this was a fair price that we paid for it.

Still being early days actually, but happy with the kind of kick-start that they made since they are part of the group actually. Likewise then on the outlook on the second semester actually, then also adding to recurring revenues, be it smaller, but it all helps actually.

In that sense, yeah, I would say on plan with also the business case and plan which we laid forward as part actually of the due diligence. That is still early days, yes, but at least on track on the start, to speak.

Now it's full steam ahead together.

I think the other plan is also a very convincing business plan. The way that they basically are presenting their growth for the coming years in their own markets by expanding into more lifestyle applications, they work through points of sales, and for them, that is actually a multiple how they increase the sales, and then, of course, the synergies that we can add by adding audio to the professional markets.

If you take that into account, that basically brought us to our €135 million acquisition price.

Good. Then maybe just a final one on Healthcare, and particularly Surgical.

Obviously, this seems to be the sort of source of the EBITDA weakness in H1. You talked about, you lost these bigger contracts, and in the press release, you say specifically that you're shifting towards this cost-competitive and scalable mid-segment solutions, which I think is the Nexxis Cube that you've talked about before.

I was just interested in two points. One, why are you not able to replace those contracts?

Is it competitive? Is it just a delay, a time lag, or is there something structural really happening in the market?

If you do manage to shift towards these more cost-competitive and mid-segment solutions, does that have a negative impact on the gross margin?

On your first part of the question, when contracts end and they're ending in time, that's just the way it is. That is typically for a large system integrator the moment where they, yeah, design a new system, but also look at what they need, and typically some of the parts that we deliver, they need to become cheaper.

There is a cost-competitive effect that is created once they start designing new systems. That is one of the reasons why indeed Nexxis Cube is a more mid-end solution compared to the high-end Nexxis solution that we have.

That is one trend we see, that can be in Nexxis, that can be in the display. The other trend that we see is once they start designing new large systems, they also need innovation.

They want to introduce new features on their systems, and for many of these features that could be a new type of display, but very often this starts now being in software. They want to add real-time compute, they want to overlay an MRI on the video image during a surgical intervention.

For that, their infrastructure, and that's typically then when Barco plays a role, also needs to be adapted. That takes time.

It takes time from their side because they need to come up with the blueprint of the design, then we need to custom-design that, and that takes time. Then we need to certify it together, and then actually you get a confirmation of a PO that you're in that design, and then typically the volume starts gradually picking up.

This is the time that you have to spend with these large system integrators to get designed in. I think it's the two effects.

It's one, the cost-competitiveness that indeed you need to go to more entry-level products. Back on your second question on the margin and the price, we have also learned now for the entry-level products, that's why we also have R&D in China, to really from the design on, design already with less costly components so that we take that into our design, so that way we can still actually secure margin even on mid-end products.

Great. Thank you.

Good questions. Any other person in the room who likes to ask a question, please raise your hand now.

If there's no other questions, then we can conclude the call. Thank you for these questions, and thank you for attending our call today.

The recording of the call will be available later today around noon on the website, and we wish you good continuation of your day. Thank you very much.

Thank you very much.