Good morning, everyone, and welcome to the Agfa call. I'm sitting here in Mortsel with Fiona Lam, our CFO, Viviane Dictus, head of investor relations, and the executive team of Agfa.

First quarter, let me move the slide. Gonna briefly give the highlights, then pass on the mic to Fiona for the financial review.

I will do the business review and the outlook. First highlights, well, clearly Q1 for me is a robust performance in positive top-line coming from pricing in the film area and a volume impact in digital printing, the rest of the group being slightly below last year.

Strong EBITDA increase year-on-year, last year was a relatively weak quarter for us. It reflects our ability to implement efficiently our savings programs, you will see it throughout this presentation, and as well the ability to pass on the silver price impact to our customers in the film activities.

As we've been seeing a tremendous increase of silver, I would say since a year and a half, with price having almost quadrupled in the same period, and these results show our ability to navigate these market circumstances with efficiency. The saving programs that we have launched last year, I'm happy to report we are now in annualized savings of 57 million.

If you remember, we talked about a plan of 50 million first, and we launched at the end of last year another plan for an extra 25, we are right on track. As we started to see in Q4, actually the impact of the cost measures are now coming to the P&L, this is also what you see during the first quarter of the year.

Silver, of course, had an impact, a specific impact on the cash for a very simple reason: when we buy silver, you have an approximately 5 to 6 months cash cycle before you recover it in terms of cash from your customers. The P&L impact is faster, but the cash impact, of course, takes a lot longer, and it has of course a tremendous impact on the cash of the group, and especially through the working capital, more than 40 million worth of silver price impact during the first quarter that we will start to recover over the year, but the overall impact of silver cash during the year will be negative.

Now, business by business highlights. Healthcare IT, I would say, transformation to SaaS on track.

However, as we repeatedly said, orders are larger in SaaS. We are also addressing just larger customers, and therefore the contract and the order intake is a bit lumpy, meaning you can have significant variation quarter-on-quarter, and this is the case.

We have in Q1, I would say, a quarter that is soft in terms of order intake, while we are expecting in Q2, and we know that because we have already signed a number of deals, we're expecting for Q2 a very strong order intake quarter. The last 12 months decrease that you see at the end of Q1 does not change the overall picture and the guidance that we have that at the end of the year we will be again increasing order intake to the highest level ever and probably high single digits at least.

The good news also that we are seeing is in this context, our recurring revenue increased by 5% now and now amounts to 67% of total Q1 revenue. This is a number that three years ago was barely above 50%, and it shows also the transition of the business to a recurring business.

The total top-line still decreased due to the fact of the change of model, as we explained several times, that the short-term impact of the move to subscription model rather than a project model. Industrial Solutions, I would say, good DPS and very subdued green hydrogen business.

Good DPS because we are back at 10% gross top-line for the first quarter. It shows that what we've seen during Q4 is being confirmed.

However, a very soft situation for green hydrogen, and '26 is probably going to be a lot softer than we even forecasted, actually, and we are already seeing shaping up '27 that will be a kind of back to normal, but we are really going through a trough during the '26. Last but not least, Imaging and Chemicals, with our business, as you see, a significant increase in adjusted EBITDA due to savings and what we did around silver.

We also discuss of course DR, where here I would say top-line is increasing, we are developing our plan as scheduled. Overall, in a volatile environment, we have been able to navigate all the market conditions successfully, and we are also confirming the impact of our cost savings measure.

I'm going to turn now to Fiona, who will walk you through the financials.

Thank you, Pascal. This slide summarizes the graph which Pascal actually just highlighted on top-line and bottom-line.

On the top-line, you see here the nominal sales growth compared to compare comparable sales growth. Without currency impact, it's actually better like Pascal already mentioned earlier.

The group actually posts a 1.7% comparable sales growth because of the higher silver prices. You also see on comparable basis actually the Industrial Solution also have a growth even though GH2 was soft, but DPS was stepping up in that context.

Healthcare IT, on a comparable basis, is roughly 5% down without currency because of actually, if you recall last year, the first half of year of Healthcare IT was extremely strong and and this year it will be in the normal seasonality is to expect a full year of Healthcare IT will lead to a a certain growth. If you look at adjusted EBITDA, it's a step-up of €10 million for Q1 driven again by Imaging and Chemicals largely related to the savings program, now that we have larger savings program kicking in now, starting this year.

Step by step, you see that as well and the ability of course to pass through the silver impact to the market so that we don't have any negative impact in our P&L on the film parts. For Industrial Solution, you also see a step-up although the step step-up could have been larger if we don't have the headwind of GH2, but all in all, it's still a step-up driven by DPS on on that.

Healthcare IT, I already mentioned, is is a a seasonality of Q1. Q1 last year and Q2 last year was very strong.

With the goods cost control, et cetera, they still are delivering a good, decent numbers on bottom-line. Corporate is more or less in line than what we have expected the seasonality as well.

Thank you. Next slide.

If you look at the bridge, it says about the 10 million earlier slide that we have seen. You see here exchange rates on bottom-line.

Luckily, we have a very diverse geographic spread, you see all the business at the end on a bottom-line, exchange rates has zero impact. Then you see the gross profit of Healthcare IT driven by a strong first quarter last year, and this year is a bit down.

You see also the step-up of Imaging and Chemicals on the gross profit because of the savings programs and the silver pass-through ability. All in all, also the the Agfa team delivers, I think, a resilience, continuous cost control, and you see also R&D, SG&A continue to contribute with with a significant tight cost control that also contributed the results.

It's been like a decent, good, solid quarter. On free cash flow, I must say I'm pretty happy with this result, even though you see a first quarter of -€42 million free cash flow, bear in mind there's a €41 million silver impact.

With the resilience of all the efforts which is continuously on working capital improvements, it really delivers. We have been already in the last, I think, six quarters improvements of working capital, and this can counterbalance the silver impact that we we have for for this year for this quarter.

CapEx is expected, and also provision, others, we continue to monetize the customer lease portfolios as well. All in all, if you look at without silver impact, actually free cash flow would have been zero at break-even level, which is significant to be able to fund the pension and other transformation programs in the in this case.

If we look at the next slide on the net debt, financial debt evolution, we are also evolving right, of course. You see in Q1, normally it's always a step-up because we need to build the working capital pipeline again.

Despite the silver, you see the working capital pipeline is still significantly lower for all business units, and therefore we at the end only step up by a from €21 million to €58 million. If you look at actually on the revolving credit facility, we draw in Q1 €129 million out of €180 million.

For Q1, there's only one applicable governance test, the liquidity headroom, and that is at €120 million out of the minimum 30. As for the reference of all the other ratios, is not applicable in Q1, but applicable as on from half-year testing.

We actually have also a a good headroom there. Leverage, you can see, is at basically Q1 of 1.1, half-year in Q2 should be at 3 as well, and year-end 2.75.

Interest cover is at 12.5 on EBITDA. We actually step up the headroom compared to end of Q4 now to 51.6 with the good income result.

In terms of numbers, I think I don't need to repeat once again. You have seen them the same as in the first two slides on this one.

Maybe just next slide for the--

I think we should still look at operational expenses, a significant impact delivering our results,

so-- Yeah. It was same as with the bridge where it shows R&D, SG&A significantly down and you can see it here basically 8 €8 million down that's conversion from the graph, you see them.

Next slide would be good to just shortly discuss because we didn't show them in the graph. You see the net result at the end is also still a negative €12 million, but it's a step-up compared to last year of €8 million.

That has to do with the better operational adjusted EBITDA performance, although we have restructuring expenses which is higher for this quarter, and in line with net financing costs expectation and taxes is a bit positive as well.

Thanks a lot. No, free cash flow you already showed in the graph.

Free cash flow

we already discussed in the graph, it's essentially the same view you have seen. Good.

Let me turn now to the business, Healthcare IT. As as already said, indeed the cloud transition continues, that's going to be lasting for the next years, I would say.

Again, I repeat, more lumpiness in the order intake for two reasons: larger contract, very long-term contracts. It's not unusual right now that we that we sign 7, 8, or 10-year contracts with our customers, larger amounts and larger customers as well.

Our net new customer size is significantly higher than the average of the installed base. Indeed we shouldn't be looking at these results quarter by quarter, but as a more long-term area.

I'm not bothered, as I told you, by the -10% at the end of Q1, actually it's going to be significantly above at the end of Q2, and that we already know because the deals are already landed. Q1 cloud deals relatively modest this quarter, 12%; net new customers, 18%; and as you see, recurring business, 1/3 compared to project business, 2/3.

It was again kind of a soft order intake quarter, but the journey to the cloud continues. I'd like to remind everyone that we are gaining net new customers due to the fact that we are sitting on top of the customer satisfaction charts of the industry today, meaning, I'm going to be very clear, in customer satisfaction today in North America, which is the core market for us, we are number one in three out of four categories.

We are number one. I show this slide, I've been showing this slide again and again and again so that we we really try to explain that you know the top-line decrease that we are seeing today as we are gaining customers is purely mechanically due to the fact that project order intake is decreasing and SaaS order intake is decreasing, and you see here the revenue model that explains a bit what it does to our to our P&L.

Again, going to the cloud means business that is recurring, that is sticky, where we can do some upsell and we have embedded growth, it's all good news for us. Now the numbers: -10% is unadjusted by currency, adjusted by currency, it's -5%, a little bit less than -5% actually, but with recurring increasing 5% and project revenue decreasing more, of course.

In terms of EBITDA quarter-to-quarter, well, again it can be a bit lumpy. Last year we we recognized a significant number of licenses, project business model, not this year, but we confirmed the overall guidance for Healthcare IT for the year nonetheless.

Overall, I would say the transformation goes on as planned, and again the difference of quarter is not really relevant. This year we're going to have a stronger second quarter second semester than first semester, last year it was a little bit more balanced.

Industrial Solutions: DPS, as I said, the good news of DPS is we were challenged a bit in terms of growth during the year '25. It improved in Q4, and Q1 is also is also showing a 10% top-line growth corrected for currency.

We have an order book that is building and the mix is actually towards the more powerful machines for us. Number of machines is one thing, but what's important as well is the size of the machine you're selling and and for us also the ink consumption, and we're selling we're selling, I would say, our top top-range machines very well today.

We continue to of course upgrade our product range as we see fit. The only caveat I would put on the DPS business is the packaging market is very slow to develop, whereby we confirm that really digital is the avenue to go.

The current state of the packaging market slows down a bit the market introduction. In for Zirfon, for the green hydrogen membrane, this is the area where we have announced already that '26 was going to be a trough for us.

There is momentum in Asia, but that does not make up for the delays in Europe. Actually, the RED directive, the Renewable Energy Directive, is just being implemented in member states in Europe, and this is absolutely necessary to get the regulatory support we need to further develop projects in in Europe, and it has been done with a bit of a delay, meaning, in fact, today for '26 deliveries, it's going to be a very low year for us.

However, when we look at the pipeline and the number of projects reaching final investment decision, we are a lot more confident for '27, where we're going to see this rebound, and the implementation of the directive will also help us very much. We have also clearly addressed the emerging markets like India and and China with our membranes.

We are successful in India, we are working in China, and we we hope that somehow we will also make inroads in this market. This is the one area that will, I would say, not work for us in '26.

If you look at the numbers, again this number on the left, -1.9%, is nominal. If you remove currency, it's +2.7%, but as a strong contrast with double-digit growth in in DPS and a and a retraction of the sales in in the membranes in '26.

Overall, when you look, and this is the new reporting, when you look at the way the way it works for DPS, it's a bit it's a bit like in other businesses, meaning the second part of the year is is much stronger than the first part of the year, and the highest quarter of the year is in is in Q4. It's not unusual for us to make negative EBITDA at the beginning of the year and a lot of EBITDA at the end of the year.

This is a bit how this market works. We install about 40% of the equipment of the year in the fourth quarter.

This is the way this market works. Okay.

These are this is the P&L, I'm not coming back to that, and I'm going to turn now to Imaging and Chemicals. Really here on the film, again, the message here, we're in control.

We're in control of our savings plan, we deliver fully what we announced, and we're also in control of our pricing and and and overall product management, which means today, even in a context where we have to face significant variation in silver price, we were able to stay on course and restore the profitability of the film. That is that is for me extremely positive in a context where the film market continues to decrease, but at a pace that is probably a little bit less than what we've seen in the past couple of years, with China going down.

Overall, in control. DR, solid start of the year.

Last year was a bit of surprising year for us with a very depressed end market, but we are seeing this market again back in growth mode, and we are also we are also seeing that in the order intake that we have, and so we're staying on course on on this. If you see, it's it's a bit spectacular, but coming from a very low point, if you remember, most of the year last year was actually negative for medical film, now we have restored the profitability in the current context.

The top-line is really the story of lower volumes, but better prices, in fact. When we when we look at the P&L, you can also see the step-up in gross profit, which reflects also the improvement of manufacturing cost and the operational cost under control, and this is really the name of the game for this for this business.

Now, if I turn to the outlook, I think broadly speaking, I would say that the global outlook for the group has not changed since we presented it in March. However, when I go in further details, there are a bit of changes, I would say.

Healthcare IT, no change. We continue to say we're going to deliver the year as planned, and we continue to say, yes, we're going to see order intake growing at high single digits percent versus last year.

Actually, this should be the first year where we would have more than 200 million in order intake, that's a bit what we bit what we had in mind, which is which is we are breaking record after record, actually. Industrial Solutions, then there is a change.

Our view on DPS has not changed, but the view we have on the view we have on the membrane has has been downgraded with what we see now. There is no no no possibility to to to improve volume short-term.

Imaging and Chemicals, if anything, our view is more optimistic regarding the year on film and chemicals on the basis of what we are seeing today in the market and our ability both to control our cost and our prices to customers, meaning overall for the group, we're not changing, to speak, the outlook, but the mix will be a bit a bit different. I also want to stress that what we are going through with Zirfon in '26, we're already seeing '27 shaping up as a significant rebound of the activity.

In terms of cash flow, no change as well. Clearly, the silver price has put even more pressure on us, I would say, to to manage very well our liquidity and cash, which is what we're doing, as you see, with a very good mastery of the working capital.

We'll continue to to to do this, but we know that due to silver and due to the cost of the transformation, we will we will be consuming cash, I would say, during the the year '26. I think, I'm going to stop here and take the questions of the analysts and the press, if any.

Hi. Hello.

Alexander from Kepler Cheuvreux here. Thank you for taking my questions.

First one would be on the Imaging and Chemicals. I see the adjusted EBITDA rose there from 2.6 million to 12.8 million, helped by savings and silver-related timing benefits.

The question is now, how structural are the savings and timings benefits? Because I assume that silver is quite a significant portion of this.

How should I look at the repeatability of this uplift towards Q2, and basically for the remainder of the year? Thank you.

Okay. I can start, and you will complement, Fiona.

That's okay. I think the savings are there, and it will amplify.

Clearly, it's a positive.

Sorry. How much of the increase is related to savings and how much is related to silver?

We're not breaking down everything in the numbers, but clearly you see that the savings have started to step up very much in Q4, and that we are continuing to implement our plan in Q1. We are not splitting the overall impact of savings and silver.

Again, savings will stay and even be amplified. For silver, the way it goes through the P&L is first with some revaluation of inventory and increased selling price.

You've got these two impacts and the negative impact of silver in the production costs. Overall we are not splitting.

You want to--

Yes, I think the answer to your question is, if you look at full-year basis, in principle, you do not expect silver really have an impact because we pass through the silver impact to the customer, top-line and bottom-line. There is a timing impact, because in Q1, like now, for example, course we still have stock, which were at lower cost of stock.

That's a timing, because you have a year-end cut-off in the end of December.

Sorry to disturb, could you maybe get a bit closer to the microphone? Because I'm having struggle to understand Fiona, apologies.

Can you hear me better now?

Yes, that's better, thank you. Yeah.

I was saying on silver, if you look at full-year basis, you should anticipate normally we are not earning more profits bottom-line on silver because we are passing through the silver impact to customer top-line and bottom-line, and also cost, so that means they level each other out. You have a timing impact, a positive result normally in Q1 because of course you have a net conversion cycle, a throughput time of 3 to 6 months.

That means basically Q1 we have large impact because the inventory was still from end of last year. Q2 you still have some impact because it depends on products, some are conversion cycles 3 months, some are 6 months.

On full-year basis, you still have, because you have a cut-off calendar at the end of the year, you have some silver impact in 2026 on a full year as well, as what is already reflect largely in Q1. The rest of the improvement is on the savings program.

Of course, you also know in the savings program, they're also a part of that counterbalance by the film decline as well. We would have a good Q1, Q2, second half of the year there would be also holiday seasons of summer holiday, low output, also Christmas, lower factory output.

You always see also in the past years second half of the year on the film and chemicals is always a bit slower in profits on that regard, even though you have normally a high seasonality in Q4. Looking at that, we would have a step-up on the full-year outlook you can expect compared to last year, but it's not as amplified as Q1 and Q2 obviously.

Don't multiply the first quarter number by four, Alexander. Basically.

Thank you for that. It would be handy, of course, and providing a bit more comfort into the increase in profitability if we see that split between the silver timing and then of course the savings, because I think the savings are structural.

Of course, the silver timing is a bit less structural. Thank you for that.

Maybe if I have a bit of questions on the Healthcare IT, because I think this is a beautiful business, but you mentioned the shift to the cloud is the reason for the decline in sales, but I was looking at the slides of last year, and if you look there to the order intake, you actually notice that the cloud deals have declined as a percentage of the order intake, and recurring business has also declined as a percentage of the order intake. How do I square the two comments?

Thank you.

No, well, as I said, don't look quarter by quarter, please, because, as I said, it's lumpy. In Q4 I think cloud order intake was more than 50%.

In Q1, it was very low. In Q2, it's going to be very strong, up to the roof.

Why? Because it depends on the contract.

The contracts are significant. When we are landing almost a $30 million contract, this is the order intake of the first quarter.

If we have such a contract in Q2 plus other contracts, it totally changes the mix. Really, please don't look at it quarter to quarter, you need to draw a line.

When you do that on a longer period, you see a continuous increase of the share of the cloud contracts. Actually, I would even say today in the US, which is as you know the core market and more than 60% of the global market, virtually all the contracts that we are taking now are cloud contracts.

We have extremely little today project order intake in the US, the market has really shifted. You have still project orders in the rest of the world, which is probably less advanced in terms of SaaS transition.

Again, I repeat, at the end of the year we will be growing the order intake, and I expect the share of cloud order intake for the full year will continue to grow as a proportion. All this is driven by net new customers.

There is always a correlation. We have a relatively soft Q1 order intake, and you see net new customers 20%.

This number in Q2 is going to be extremely different. That's why we need to really look at it from a longer period.

I think the key message here is, first, we are winning in the cloud. We are winning contracts today, even against Sectra and Visage in the cloud, historically the two fast-movers and leaders of the cloud solution in the medical imaging market.

Not only we are competing, but we start to win. We win net new customers.

We increase always recurring sales, and as I told you, now it's almost close to 70%, it was 50% 3, 4 years ago. We are, by moving to the cloud and getting new customers, we're addressing larger customers as well than the average of our installed base.

All this is very positive. What is not positive is the fact that the business model being changed, it's a significant delay before it hits the P&L, because an order intake that we take in SaaS, normally typically it's at least 9 to 12 months implementation time.

That's why. Sorry for my long answer,

but-- No, that's clear. Maybe, yeah, maybe one small follow-up in that respect.

This can hopefully not sound a bit too punchy, but it's basically that the cloud is supposed to be a higher-margin business, I'm struggling from a bit of an outsider, if everything is going to cloud and the mix is improving towards cloud, why the EBIT is declining? I understand it's lumpy, but in the end, if cloud should bring a sort of positive mix effect and right now it seems from an outsider's perspective that cloud is working at a negative EBIT, how much cloud business do you need on a recurring basis as a percentage of sales to turn that into positive territory?

No, hello, thanks for the question, and I think it's a good opportunity to clarify. Yes, cloud margins will be higher than project margins.

However, we're just at the beginning. Remember that for the time being, we have eight customers on the cloud, okay, more or less, and we had actually four I think or five at the end of '25.

We are just at the start, meaning not everything is fully optimized in terms of cost, okay, Alexander, meaning we know where we are going in terms of margins, but as we start, we don't have the full efficiency yet, and it's going to be like going down the experience curve, okay? We are doing that and we're already seeing significant improvement in our margins.

Don't, for the time being still in a launch phase, at the end of '26 we will have less than 20 we will have less than 15 about less than 15 customers on the cloud, and it will continue to build up. We are becoming there more and more efficient, it takes time, but I confirm indeed that it's a business proposition where margins are extremely high.

Not at the beginning. You need to have your scale first.

Okay. Thank you for that clarification.

That's all for me. Thanks.

Thanks, Alexander. Any other?

Yes, thank you. I want to concentrate on green hydrogen solutions, what make you say that the market sentiment began to improve in Europe was one of the items on your slides, and you mentioned several large projects reached financial investment decision.

How many of this projects yeah, are now dedicated or will choose Zirfon, and so what is your penetration? Thank you.

I will start, and maybe I will pass the mic to my colleague Jorge Tomás, who is in charge. Hydrogen projects are very visible.

These are hundreds of millions in terms of amounts, sometimes billions of investment. For this, we are a small part of it, as as a membrane, but we have a good pipeline visibility.

What makes us think that in '27 we're going to build it again? Jorge, what can you say factually to explain this?

Good morning, everyone. If you look at the pipeline of projects in recent announcements of FID, final investment decisions, of larger projects in Europe as well as if you look at the recent auctions of new capacity that have been successful, you will see one, an acceleration of projects coming to FID and going forward, particularly in regions such as Spain, but a bit across all over Europe.

For 2027, and I cannot exactly explain which of the projects we are engaged with, but that would be also revealing confidential information from our clients. What I can confirm is that the good number, and I would say the large majority of projects that are flagged for water alkaline electrolysis, which is the technology where we play, have been seized or have been won by our direct clients.

I can also confirm that these direct clients have started discussions with us on commercial terms for the supply of these projects. We see good indications that indeed 2027 will be a rebound as we start to supply these projects.

Further than that, towards the longer-term future, if you are also aware in terms of the national deployment of the Renewable Energy Directive, RED III, you will see that the pace at which the national governments are now deploying or implementing this directive into local legislation is increasing, and the perspectives are that finally Europe is picking up speed and taking back lost time.

Just a question on the project in Spain that you were mentioning, is that the [Move?] project that thyssenkrupp did win recently?

That thyssenkrupp is historically a client of us. That they have won [Move?]

.

You can connect the dots.

I will not confirm that.

Okay. No,

no, it's based on real projects, indeed.

Okay.

Thanks a lot. In a nutshell, again, confirmed outlook, but as you've seen with film Imaging and Chemicals better than what we expected even a few months ago, Zirfon more difficult, but short-term, the rest of the business, DPS on track and Healthcare IT on track.

Overall, I hope that message that I want to give you is the restructuring and savings plan that we have put in place is now deployed and starting to have its full effect, and you can see it in the results. It shows also, and I want to insist on that, our ability to really navigate the market conditions of silver very efficiently in such a volatile context.

Of course, I want to stress also the drive we have to make sure we are managing our cash, liquidity, and for instance, working capital in this context also quite tightly, I would say. The market context is what it is, but in this market context, we believe we can indeed deliver the outlook we presented to you.

Thanks a lot for your time and attention.