Good morning, everyone, and thank you for attending our conference. I'm sitting today with Fiona Lam, our CFO, and the rest of the executive team.

Before I walk you through the results, I'd just like to come back to the transition we're having today with Fiona Lam who's going to leave the group by the end of the month, and the announcement of our new CFO, Declan Guerin. I just want to publicly thank Fiona for the two years she has spent with Agfa, having an excellent impact and helping me steering the transformation of the group.

This is the last call that Fiona is going to do today with you. There will be no vacancy because in November we'll we'll have our new CFO in place since Declan will be starting 1st of October.

Thank you, Fiona. Turning to the results.

As you've seen, pretty resilient results, but a lot of moving parts actually. If I start with the three growth engines of Agfa, I can start with HealthCare IT: very good commercial momentum, very good order intake, excellent move to the cloud, a lot of net new club customers, but as I repeat every time, there is an impact of this cloud transformation and that's the delay of revenue and margin recognition.

As you can see, the SaaS transformation of the business is accelerating because our order intake were 50% cloud-based during the quarter. The message is also we're winning in the market: 54% of our order intake is with net new customers, meaning we are winning share, and we are able to win this share against the market leaders.

DPS is back to growth for the semester after a '25 year that was a year of, I would call it consolidation. We're back to double-digit growth, and that's very good, it's very positive.

Last, of course, the membrane is having, I would say, a very difficult year, the hydrogen membrane. It's a trough.

We're part of a trough today, where actually we are very confident to see a very sizable rebound in '27. In '26, we're we're in a situation where our customers have already what they need in terms of membranes in inventory, and therefore it's a bit of a lost year for Zirfon.

We remain extremely confident going forward about the growth potential for Zirfon, and that will start materializing as soon as '27. That's the state of the three growth engines.

The resilience of the results is also to be credited to Imaging and Chemicals. Film in volume decline environment has been able to actually generate positive results.

This is a reflection of the huge restructuring effort we have undertaken now for a year and a half that places us ahead of the curve today and is more than enough to compensate today the volume decline. We're able to do that in a very turbulent environment, especially with the huge volatility on silver prices.

We are able to navigate the market to increase prices to customers as well. It's a very positive thing for for the group.

DR is, I would qualify it as stable. Overall, quite, I believe, a good performance given the market the market backdrop.

I will turn now to Fiona to walk you through the numbers.

Thank you, Pascal. In terms of the numbers, a solid quarter, like Pascal have said.

The chemic- Film & Chemical, Imaging & Chemical, the silver impact on the revenue are offsetting more than the volume impact. You see plus 2.6% growth excluding currency.

We are specifically pleased with 11% growth on EPS, although still not sufficiently offsetting the decline of Green Hydrogen Solutions because of soft market conditions this year. Like Pascal said, the rebound we are expecting in 2027 in Green Hydrogen Solutions.

I'm also We are also very pleased with HealthCare IT in terms of the transformation, the order intake, the recurring revenue, the quality of HealthCare IT revenue has been proved on track, even though we see a minus 9.5% decline in the second quarter on HealthCare IT in the current revenue, which is anticipated because we also know last year we had a very, very strong HealthCare IT on-license sale in the first half of the year. Seasonality of HealthCare IT last year in the first half of the year was very strong, and we anticipate on HealthCare IT second half the year we would be basically offsetting that negative trend.

If we look at EBITDA, I think we could say it's really a a solid performance on on the EBITDA. We see the step up of Film & Chemicals on the saving program that have adjusted our base cost base for the decline, we are able to step up from €4 million to €9 million.

For Industrial Solutions, also there, and also Green Hydrogen Solutions a very small decline based because of the top line, but the good cost control has been able to maintain a reasonable adjusted EBITDA level. HealthCare IT is actually better than our internal expectation, even though you see a decline, we anticipated it.

This cloud transition, we anticipated strong last first half-year. All in all, we are happy with the Q2 adjusted EBITDA, because it's a very solid performance.

Here you see also the bridge. Basically, it confirms earlier we said HealthCare IT and Industrial Solution were because of the top-line decline.

Imaging & Chemical, the savings programs were able to contribute so that the volume decline is offset on the gross gross profit. Then, we have all the whole work being done within Agfa on adjusting the costs and that savings are delivering and stabilizing our Q2 EBITDA as such.

On free cash flow, even though we Q2 still consume €10 million negative free cash flow, it is well managed. It's better than expectation internally because we actually have a large quarter of cash out for the expected transformation program, restructuring program which we have announced last year.

Yes, anticipated large cash out this quarter. We have, of course, the normal pension, if we look at that, all in all, our working capital has been managed very well and also our provision, etc.

Without, let's say, the impact of silver, it would be much better, but we managed to offset quite a lot of this negative impact internally. A minus €10 million cash flow is a good outcome for Q2.

That's you can also see the evolution of our debt. If you see the net financial debt, basically, in Q2, of course, it has been stepped up from €58 million to €74 million because of the net negative free cash flow.

We also know, like I earlier said, it it is better than expectation. We have now end of Q2 with €230 million of facility out of the €180 million.

It's also provided at the end our Q2 governance tests have sufficient headroom, and you see liquidity headroom is sufficient compared to the minimum €30 million. Leverage ratio is at stable at 1.4, and interest cover is also well managed, and just the EBITDA governance is at €52 million versus €30 million.

This is basically thanks to all the effort and the business in the working capital improvements and also the better EBITDA as first half of the year. If you look at the numbers, we just highlighted in the graph the Q2 numbers.

Here, it's worth also to have a quick look on the first half of the year. First half of the year, we deliver actually €10 million more adjusted EBITDA compared to last year because as you know and still recall Q1 was a stronger adjusted EBITDA in Q1, and Q2 is stable.

We uh we ended with €10 million more adjusted EBITDA compared to last year. On net results, you see even that there we are worse than last year.

Just wanted to remind, last year in adjustment and restructuring expenses, we had the AgfaPhoto that was being booked in June of last year, €38 million. It was not cash being received, but it was booked in the P&L last year under the non-recurrence for in 2025.

Also, the net finance cost was another €7 million because of AgfaPhoto that was being booked as well in last year. All in all, you see, without the AgfaPhoto, our net result improvement step up is equivalent to what we have stepped up in the adjusted EBITDA to to be aware.

Free cash flow is the same as what we have earlier said, minus €10 million free cash flow, but also for the first six months, we are at minus 52 in total. That's offsetting, remember the first half year we have €45 million silver impact of purchasing silvers for the stock, ramp-up of our net working capital for that.

We were able to offset quite a large part of this and maintain a step-up compared to last year of minus €30 million to minus €52 million. That's in fact is largely managed from Agfa.

Thank you for

Okay,

to HealthCare IT for Pascal.

Thank you, Fiona. HealthCare IT.

Clearly, if I look at the P&L, two reasons as explained already why we are below last year: first, seasonality. Last year we still have more, I would say, project revenue and and and license, very clearly, and the transition to the cloud, the other explanation of of what we are seeing today.

I want to insist, this transition is going well. As you've seen, the order intake is increasing by 28%.

I hope that I'm sure that we will break the €200 million mark for the year as 12 months. Cloud-based order intake more than tripled, which is showing really that this transition is accelerating.

Cloud deals have represented 50% of our orders. What I want to insist on as well is it's done with net new customers, meaning we are winning new logos in the market, which shows that our offer is appreciated and extremely competitive, of course.

That really this momentum is really accelerating quarter after quarter. Overall, even if the P&L is not yet delivering, this this transformation, we are in the way of growth and profitable growth in HealthCare IT, and the order intake is really the best leading indicator we can use to describe our business.

Overall, I again show the same slide that shows the impact of changing from license revenue to subscription model. As you see, it has a significant impact on the sales, and also therefore the profit with a totally different model spread over time.

Then, the numbers, we've already commented these numbers, I'm not going to dwell on it too much. Again, nothing is broken with HealthCare IT.

On the contrary, we have good momentum in the market and we are expecting also the second part of the year to be, as normal, the fourth quarter would be the highest quarter. This is the seasonality of this business, and it will happen again this year.

Now let me turn to Industrial Solutions, and here a contrast, I would say very very good with digital printing solutions. After a year '25 where the growth was somewhat subdued, we are now growing again double-digit the business, and really what we are pleased to see is we are growing in the high-end market, in the high-end part of our offering, which shows excellent traction today.

Of course, the consumables are part of this growth, with sales of ink increasing cross the board 10% as well. We do, for our high-end offering, receive a lot of customer recognition and, actually, awards.

We're not forgetting also to continue to build our offer in packaging. This time, it's a collaboration in the software area to make sure we can offer the best full solution to our customers in the packaging segment.

Overall, DPS, return to growth and good prospect going forward. Very different story for Green Hydrogen Solution.

'26 is pretty much a trough, or a lost year, but there are things advancing very well in the background. First, the RED III implementation is taking place now after some delays.

We are seeing projects being FID'ed in Europe, which we didn't see for some time, actually. We have an excellent momentum in Asia.

We have our first sales in China, while still modest, of course, but it's a start. We are also doing extremely well in in India.

The message is: yes, short term, '26 is not a good year for Zirfon, for the green hydrogen membrane, but we already look at '27 with great confidence that we're going to rebound in the market. We're also very happy to see that in the meantime we are growing the recognition of the performance of the membrane, especially in Asia, which are our priorities in terms of commercial development today.

Turning to the sales, or to make a long story short, what you see here is a DPS that is up and a membrane that is down. Overall, indeed the membrane has an impact on the segment in spite of the good performance of DPS.

Imaging & Chemicals, well, where I'm really happy is the fact that somehow we have turned the corner. In film, we were suffering from significant volume decline in film while we were putting in place our restructuring efforts.

Now, this restructuring efforts are going full steam. Our savings are in place, not only in the operations, but also in our go-to-market.

We have turned the corner, and we are now in the position to claw back some of the profitability of the film. We are also doing that in the market backdrop that is not easy with the volatility of silver price.

Although the volumes continue to decline in film, we are seeing an improved profitability. DR, well, Q2 was not a very good quarter for DR, but I would say that profit wide profit wise we are on par with last year, nothing nothing really to worry about.

We have put together a renewed strategic roadmap for the business, which we are confident will provide the ability to grow top and bottom line in this business. Overall, here maybe I will I will show the P&L, because the P&L is showing actually the cost efforts that we have made in Imaging & Chemicals with a gross profit up in spite of decreased volumes.

As you can see as well, our opex decrease, which is extremely significant and is the result of the efforts I referred to. Outlook: well, for HealthCare IT, we are seeing the rest of the year to continue with our momentum in terms of order intake, same momentum I would say, and profitability will be in line with last years in the context of this cloud transition.

Industrial: S2 will be the same with DPS well-oriented, and Zirfon still still subdued. Again, we're not expecting any rebound in '26, but in '27 for Zirfon.

We do have some visibility on the projects and the the customer orders. Imaging & Chemicals, we will, for the full year, restore somehow the profitability of film.

It's going to be better than last year. Again, same trend.

We'll continue to adjust our cost to what we see in the market and will continue to be very proactive in terms of silver silver-based pricing. Cash flow for the year is expected to be more negative, we claim it.

We don't have an AgfaPhoto this year, and we still have significant cash out related to the transformation and the restructurings that we are having for the company. Again, I want to repeat, even if the quarter results are today largely due to the good performance of film, nothing is broken with our with our growth engines.

HealthCare IT is winning in the market, is winning orders; DPS is growing; and Zirfon is going to rebound. Nothing is broken, and we confirm the ability of the group to pursue its transformation.

I will stop here and open for questions for the analyst and the press.

Hey, good morning. Thank you for taking my questions.

Um so the first one would be on on the transform- transformation cash-outs. When you announced a transformation program in 2024, you indicated that it would be self-funding, but of course now we we already see um a €30 million cash-out by H1 um related to this restructuring program.

What has changed versus that original assumption, and how much additional cash-out should we now expect from these programs going forward? The second question would be on AgfaPhoto.

You mentioned that the Frankfurt higher regional court decided to annul the ICC award um that remits the case back to the tribunal. As an analyst, it's it's difficult to see the downside risk from here.

Could you actually be required to pay that €45 million back, or are you already required to give it back? That would be my second question.

Then, the third question would be on HealthCare IT. I think when looking at peers, we see that there's also increasing investments in AI-related functionality, and I was wondering how much product development is is required for the HealthCare IT, specifically the cloud, to remain competitive mid-term and and how much we should pencil in as sort of R&D budget for these features?

Thank you.

Thank you, Alexander. On the first question on the cash transformation, well, yes, it is self-funding.

We today we have a recurring level of savings of more than €60 million from the program and that is that corresponds more or less, I would say, to the cost of implementation. Yes, things are self-funding in this in this way, to speak.

You want to add something, Fiona?

Maybe just to add, of course, you see in the free cash flow the cash-out of this amount per quarter, and the savings are in the operating expenses, where you also see we improved EBITDA, where you also see how much lower operating expenses you can see in our P&L delivering. Plus, of course, each quarter, seasonality is different because your cash-out sometimes is in different quarter while your saving are ramping up.

You see like Pascal said, the annualized saving is €61 million, and you see those cash-out, of course, is in different time phases. You will never be exactly each quarter balancing each other, of course.

Absolutely.

Thank you. That's actually That's actually quite clear.

Um so, is Does that mean or imply that then the full-year cost cash-out is also around €60 million? Um,

on the Moonshot program, you can say that, uh, but yes, it's different timing, different years, some last year, some this year, some next year. Uh, Moonshot program, but we also own

What we call Moonshot is the restructuring of Mortsel operations, actually.

It's

our internal project name. Indeed, that's one-to-one, to speak.

AgfaPhoto, you questioned on AgfaPhoto, let me explain the situation. What happened recently, when when in Germany when you have the result of an arbitrage, you have the possibility to go for an annulment process that is not based on the subject matter, but on the process itself.

That's what happened to in a in a in a Frankfurt court. The judgment is not about the subject matter.

It's about a process, and actually the the the right of the defense in in in respect. First, we have made an appeal of this judgment, for which we are waiting the outcome.

Then, if the judgment is sustained, it means it will go back to arbitrage, but not for the full arbitration, just on the specific issue that was pointed by the court related to the right of the defense, we're not starting again. Point number four, no, we keep the money.

We keep the money. There is no no impact at all on the money.

I would like to remind everyone that we have we have prevailed in two arbitrations of the subject matter, whatever the decision of the appeal, we are extremely confident that it will be the case for the the the the small well, the part that we will have to to to review in the arbitration. No, we are keeping the cash.

Point number three, HealthCare IT, and thanks very much for the question, Alexander. It's an excellent question.

First, I would like to remind everyone that we are investing significant amount of R&D in the business, and we have over time increased significantly our efforts in R&D, because today it's close to €40 million out of a business that is about €240 million. Then, AI is not only an investment.

It has a return. For instance, today we are using AI in our coding activities.

Here, you have an immediate benefit, because you are increasing productivity by 30% to 50% depending on what you do on AI. Actually, it's not a cost.

It's a boost for us. Indeed, we are integrating We always have integrated AI for many years in the diagnosis part, in the solution part, in the imaging image generation part.

We have already solutions that are commercial today in AI. The third impact where we are using AI is actually on what we call the workflow orchestration, because remember we are not selling only a software.

We are selling a full solution, where we are managing the workflow of a radiologist from the time he takes an appointment to the time the image is being stored and archived. Managing this workflow is leveraged today by AI.

Don't believe that we need a specific more budget for AI. We are using our current R&D resources to actually invest in this in these solutions, and I gave you three areas where AI has an impact.

I repeat it: in the coding itself by going faster and doing more for the same resources; AI solutions to help the clinician to make a diagnosis; and, three, automation of the workflow also to gain productivity and capacity at the end of the day of in a world where we are resource-constrained for radiologists. AI is totally embedded in everything that we're doing in HealthCare IT, and actually for us it's a great opportunity to develop our products for the benefits of clinicians and patients.

Thank you. Maybe if I can just ask a small follow-up on that.

Um, does the the cloud also allow for third-party um applications to be integrated? Oh, but

yes. We are providing, as I said, a full solution model in which we have our own, of course, softwares, but we also integrate third-party softwares.

The answer is yes. Yes, absolutely.

Thank you.

Hi, thank you. I have one question that I already highlighted in the more in my morning note of this morning.

That a new director, Eric Cortequisse, and a new CFO have both a carve-out history. Could this lead the way for HealthCare IT?

You you you you're right. They also have history in corporation as well.

I think Eric Cortequisse was the CFO of Sibelco, for instance, which was not a carve-out. I think Declan has experience as well in very good corporate names like Rolls-Royce and whatelse.

It's not But the fact that indeed they have an experience and background in PE is a plus for me and is a plus, I think, for the team, because we are going through a transformation. Yes, where we might look at strategic options.

Of course, we are always looking at strategic options. Okay?

I think it's a very good observation from your from you, indeed. They're not only PE, they are broader than that, both of them.

When I stick

to my question, could this lead the way for Healthcare IT?

I'm not going to comment on that. Clearly, the first priority we have for HealthCare IT today is to succeed the cloud transition.

Okay? Now, if the question is why do we keep an IT business with an industrial business, it's a legitimate question.

For the time being, I think we have been the right shareholder and investor for HealthCare IT given given our track record in the past years on the business transformation. Again, this is our first priority, and clearly, it's build up the value of this business.

Thank you.

Fiona wanted to add something.

I just wanted to add based on the eyes of CFO to your question. He is I think Agfa, we just need a all-round, comprehensive CFO who is good in finance, corporate finance, but also good in transformation, who is strategic optionality

and and

that is where a a good competence CFO is.

Absolutely. By the way, yourself, you had both an experience in corporate and in PE-backed company, and that's I think it's it's part of being a a well-rounded CFO, as you say very well.

Okay. Thank you.

Thank you.

Thanks a lot. Thanks a lot.

Again, we are, as you see, we we've addressed the film situation, I think, quite efficiently and that shows today in our results. In the meantime, I want to repeat my message: nothing is nothing is broken with the growth engines, on the contrary.

The commercial momentum that we are seeing for HealthCare IT, we have never seen that before, gaining so many new customers, large contracts and very interesting contracts. DPS is in growth mode and here the name of the game for us is only to accelerate this growth.

Zirfon is not having a good year, but stay tuned. It's going to change very rapidly in '27, and the technology is confirmed to be the top-class and the reference technology for for membranes in the hydrogen world.

Clearly, we are extremely confident about what we are doing. Thanks very much, and speak to you now in November, I guess.