Group 1 - Materialise is a Belgium-based company that specializes in 3D printing services, producing on-demand prototypes and production parts [1] - The 3D printing industry is anticipated to offer advantages such as customized manufacturing, which may support partial supply-chain relocalization, waste reduction, and lower carbon emissions [1] Group 2 - The investment focus is on growth companies, particularly in the mid-cap segment, with an emphasis on sectors like biotechnologies, computer chips, cloud technology, energy, and commodities [1] - A systematic balance sheet analysis will be conducted, as growing businesses often struggle with funding, while a stress test will be utilized to evaluate the safety of each business model [1] - Long-term capital appreciation is prioritized over short-term speculation [1]

Core Viewpoint - Materialise NV, a prominent player in additive manufacturing software and 3D printing services, is set to release its financial results for Q3 2025 on October 28, 2025, at 6:30 a.m. ET [1] Financial Results Announcement - The financial results for the third quarter ended September 30, 2025, will be disclosed on October 28, 2025 [1] - A conference call to discuss these results will take place on the same day at 8:30 a.m. ET [1]

Core Insights - The current market environment is characterized by heightened uncertainty, which can lead to missed investment opportunities if investors become overly cautious [1][2][3] Group 1: Economic Growth and Inflation - The three major economies (China, Eurozone, and the US) are experiencing different growth and inflation dynamics, with China showing 5.4% GDP growth and 0.6% inflation, the Eurozone at 1.5% GDP growth and 2.3% inflation, and the US at 2.1% GDP growth and 2.8% inflation [6][7] - The International Monetary Fund projects global economic growth at 3.3% for 2025 and 2026, indicating that the major economies will likely continue their current growth trajectories [7][8] - The US share market outperformed in 2023 and 2024 due to accelerating economic growth, while China's deceleration in early 2024 led to underperformance in its shares [8][9] Group 2: Central Bank Policies - Central banks are diverging in their approaches, with the Bank of Japan tightening while the US Federal Reserve remains cautious due to inflationary pressures and potential de-dollarisation [12][16] - The focus of central banks is shifting towards national economic conditions, which may lead to differing monetary policies as they balance employment and price stability [14][16] Group 3: Government Debt and Fiscal Policies - Global public debt reached US$98 trillion in 2024, representing 94% of global GDP, raising concerns about sustainability and the potential for austerity measures [19][20] - The US dollar's status as the world's reserve currency provides a unique position, but any significant shift away from it could impact creditworthiness and market stability [22][32] Group 4: Trade Relations and Geopolitical Risks - The potential for trade wars, particularly between the US and China, poses a significant risk to global markets, with the possibility of tariffs leading to a decoupling of major economies [27][28] - While current conflicts may not significantly impact markets, the risk of escalation remains, particularly in strategically important regions [24][26] Group 5: Retail Investor Behavior - The rise of online trading platforms has increased retail investor participation, leading to a preference for well-known brands and household names in stock selection [34][36] - This shift in behavior may influence market dynamics, especially during market corrections where popular stocks could face heavy selling [38] Group 6: Future Scenarios for Investment - Several potential scenarios for the second half of 2025 include a steady growth environment, a recession risk scenario, a significant downturn due to trade tensions, and an unexpected economic recovery [39][51] - Each scenario presents different implications for investment strategies, emphasizing the need for adaptability in response to changing market conditions [42][49]

Company Performance - Materialise NV (NASDAQ: MTLS) reported soft results in the second quarter, primarily due to automotive headwinds in Europe and macro volatility affecting customer investment appetite [1] - The Medical segment of Materialise is expected to perform better despite the current challenges [1] Investment Insights - Narweena, an asset manager, focuses on identifying market dislocations caused by a poor understanding of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities [1] - The investment strategy emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and a long-term horizon targeting deeply undervalued stocks [1] - The aging population, low population growth, and stagnating productivity growth are expected to create new investment opportunities, contrasting with past trends [1] - Many industries may face stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - The economic landscape is increasingly characterized by asset-light businesses, leading to a declining need for infrastructure investments [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia over time [1]

Financial Data and Key Metrics Changes - Total consolidated revenue decreased year over year by 5.8% to €64.8 million, despite strong performance in the Medical segment [20][23] - Gross profit margin increased to 58.3%, reflecting changes in revenue mix and optimization of production costs [20][31] - Adjusted EBIT for the quarter amounted to €3.1 million, showing a strong increase compared to prior quarters [20][25] - Net result for the quarter was a profit of €0.2 million, impacted by unfavorable exchange rate fluctuations [20][33] - Free cash flow was positive, leading to a net cash position of €63 million at the end of Q2, an increase of €2 million since the beginning of the year [20][35] Business Line Data and Key Metrics Changes - Medical segment achieved high double-digit growth, with revenue increasing by almost 17% this quarter [20][26] - Software segment revenue decreased by 12% to €9.9 million, partly due to the transition to a recurring revenue model and macroeconomic pressures [20][27] - Manufacturing segment revenue declined by almost 25% compared to the same period last year, realizing quarterly revenue of €22.1 million [20][29] Market Data and Key Metrics Changes - Materialise Medical accounted for 51% of total revenue, Materialise Software for 15%, and Materialise Manufacturing for 34% in Q2 [23] - The U.S. market continued to face challenges, impacting sales volumes in the Software segment [27][61] Company Strategy and Development Direction - The company is focusing on mass personalization in the medical business, expanding into new markets such as respiratory [7][8] - A pilot collaboration with Johnson & Johnson aims to advance the adoption of surgical planning solutions in the respiratory market [11] - The company is engaging with the defense sector to enhance regional defense capabilities, which is expected to open new opportunities [15][16] Management Comments on Operating Environment and Future Outlook - Management anticipates that geopolitical volatility and macroeconomic uncertainty may intensify, impacting the business climate for the remainder of the year [37] - Revenue guidance for the full year has been slightly reduced from €270 million - €285 million to €265 million - €280 million [38] - Despite the lower revenue outlook, management remains confident in the fundamentals of the business and the potential for structural cost efficiencies [38] Other Important Information - The company continues to invest in R&D, with over €11 million spent in the quarter, primarily in the Medical segment [32] - A restructuring in the manufacturing division has been implemented to manage costs amid revenue pressures [19][30] Q&A Session Summary Question: Can you quantify the opportunity in the respiratory market? - Management indicated that the respiratory market is new and still developing, with revenue impact not expected until next year [44][45] Question: What is the purpose of the €20 million debt taken out during the quarter? - This debt is part of an earlier agreement for a €50 million facility, intended for CapEx or M&A investments in the future [47][49] Question: What drove the strong gross margins despite lower revenues? - The strong gross margins were attributed to a combination of mix effects and the ability to reduce production costs in both medical and manufacturing segments [50] Question: Will the medical segment continue to see double-digit growth? - Management expressed confidence that the medical segment will continue to grow, with ongoing investments in new markets [58] Question: What parameters were used for the revised top-line guidance? - The revised guidance was based on a detailed exercise considering various business lines and market conditions, rather than a single parameter [60][62]

2 Agenda Q2 2025 Financial Results Conference call | July 24, 2025 www.materialise.com | NASDAQ: MTLS Safe Harbor Summary This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and bu ...

Revenue Performance - Total revenue for Q2 2025 decreased by 5.8% to €64,831k from €68,797k in Q2 2024[4] - Revenue from the Materialise Medical segment increased by 16.7% to €32,850k compared to €28,141k in the same period last year[4] - Revenue from the Materialise Manufacturing segment decreased by 24.9% to €22,109k from €29,429k in Q2 2024[5] - For the six months ended June 30, 2025, total revenues were €131,210,000, slightly down from €132,434,000 in the same period of 2024[28] Profitability - Gross profit for Q2 2025 was €37,778k, with a gross profit margin of 58.3%, up from 57.0% in Q2 2024[5] - Net profit for Q2 2025 was €199k, a significant decrease from €3,875k in the same period last year[9] - Total comprehensive income for Q2 2025 was €823k, down from €3,093k in the corresponding 2024 period[20] - For the six months ended June 30, 2025, the net loss was €337,000 compared to a profit of €7,461,000 in the same period of 2024[23] - Adjusted EBIT for Q2 2025 was €3,058k, down from €3,872k in Q2 2024, with an Adjusted EBIT margin of 4.7% compared to 5.6%[13] - Adjusted EBITDA for the six months ended June 30, 2025, was €14,434,000, down from €17,283,000 in 2024, indicating a decrease of approximately 16.8%[25] Cash Flow and Financial Position - Cash flow from operating activities for Q2 2025 was negative €27k compared to positive €8,400k in Q2 2024[11] - Net cash flow from operating activities for the six months ended June 30, 2025, was €9,686,000, a decline from €18,370,000 in 2024[23] - Total cash and cash equivalents at the end of the period were €117,064,000, a decrease from €125,492,000 in 2024[24] - At June 30, 2025, cash and cash equivalents were €116,712k, an increase from €102,304k at December 31, 2024[10] Segment Performance - Adjusted EBITDA from the Materialise Medical segment increased to €10,728k, with a margin of 32.7%, up from 29.1% in Q2 2024[14] - Segment adjusted EBITDA for the Medical segment was €10,728,000 for Q2 2025, representing an increase of 30.8% from €8,199,000 in Q2 2024[28] - The Software segment reported adjusted EBITDA of €1,373,000 for Q2 2025, slightly down from €1,374,000 in Q2 2024, maintaining a stable performance[28] - The Manufacturing segment experienced a negative adjusted EBITDA of €807,000 in Q2 2025, compared to a positive €2,416,000 in Q2 2024[28] Assets and Liabilities - Total non-current assets amounted to €202.72 billion, with goodwill accounting for €43.24 billion[21] - Current assets totaled €201.65 billion, including inventories of €14.67 billion and cash and cash equivalents of €116.71 billion[21] - Total assets reached €404.38 billion, reflecting a strong financial position[21] Financial Expenses and Investments - Financial expenses increased to €6,770,000 for the six months ended June 30, 2025, compared to €2,241,000 in 2024[23] - Financial expenses for the three months ended June 30, 2025, increased to €4,039,000 from €1,441,000 in 2024, indicating a rise of 180%[29] - The company reported a significant increase in proceeds from loans and borrowings, totaling €20,000,000 for the six months ended June 30, 2025[24] - The company reported a net cash flow used in investing activities of €3,688,000 for the six months ended June 30, 2025, compared to €11,104,000 in 2024[24] Research and Development - Corporate research and development costs for the six months ended June 30, 2025, were €2,100,000, up from €1,763,000 in 2024, reflecting a 19% increase[29]

Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis in making informed investment decisions [1][2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with a notable increase in volatility across various sectors [1]. - Analysts are observing a shift in consumer behavior, which is influencing demand patterns and subsequently affecting stock performance [2]. Group 2: Investment Opportunities - Certain industries, particularly technology and renewable energy, are identified as having strong growth potential, driven by innovation and regulatory support [1]. - Companies that adapt quickly to changing market conditions and consumer preferences are likely to outperform their peers [2]. Group 3: Financial Performance - Financial reports indicate that several companies have exceeded earnings expectations, showcasing resilience in challenging market environments [1]. - Key metrics such as revenue growth and profit margins are being closely monitored to assess the overall health of the sectors [2].

Company Overview - Materialise NV is a leading provider of additive manufacturing software and sophisticated 3D printing solutions with over three decades of experience in the 3D printing industry [3] - The company offers a range of software solutions and 3D printing services that support sustainable 3D printing applications across various sectors, including healthcare, automotive, aerospace, eyewear, art and design, wearables, and consumer goods [3] Upcoming Meetings - Materialise will host its Annual General Shareholders' Meeting (AGM) on June 3, 2025, at 10:00 am CET [1] - An Extraordinary Shareholders' Meeting will also take place on the same date to discuss and vote on proposals to amend the articles of association, including renewing the Board of Directors' authorization to increase the company's authorized share capital and changing the statutory date of the AGM starting in 2026 [2] Accessibility of Information - The convening notices and other documents related to the AGM and Extraordinary Shareholders' Meeting, including the annual report, are available on Materialise's website [3]

Group 1 - Materialise's Q1 results were mixed but positively received by investors due to low expectations, with the Medical segment showing healthy growth [1] - Materialise's guidance indicates that tariffs will be less impactful moving forward [1] Group 2 - Narweena, an asset manager, focuses on identifying market dislocations caused by misunderstandings of long-term business prospects, aiming for excess risk-adjusted returns [1] - The research process at Narweena emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] - Narweena's investment strategy is influenced by an aging population, low population growth, and stagnating productivity, which may create new investment opportunities [1] - The firm believes that many industries may face stagnation or secular decline, potentially improving business performance due to reduced competition [1] - There is a trend towards asset-light businesses, leading to a declining need for infrastructure investments, which is affecting capital allocation and asset prices [1]