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]

Financial Data and Key Metrics Changes - In Q4 2024, revenue increased slightly to €65.7 million, with a full year revenue of over €267 million, representing a 4% increase from 2023 [25][27] - Adjusted EBITDA for Q4 decreased to €4.3 million from €8.5 million in Q4 2023, with a corresponding adjusted EBITDA margin of 6.6% [28][29] - Adjusted EBIT for Q4 was negative at €1.2 million compared to €3.2 million in Q4 2023, with a full year adjusted EBIT of €9.7 million, down from €9.9 million in 2023 [30][31] Business Line Data and Key Metrics Changes - Materialise Medical segment revenue increased by 14% to €31.8 million in Q4, with a full year revenue increase of almost 15% to €116 million [25][34] - Manufacturing segment revenue decreased by 13% in Q4 compared to the previous year, with a full year revenue decrease of 3% to €106.5 million [37] - Software segment revenue remained stable at around €44 million for the full year, with Q4 adjusted EBITDA at €1.1 million and an adjusted EBITDA margin of 10.1% [36][38] Market Data and Key Metrics Changes - The Medical segment accounted for close to half of consolidated revenue in Q4, while Manufacturing and Software accounted for 35% and 17% respectively [26] - The Manufacturing segment faced challenges due to unfavorable macroeconomic conditions in Europe, particularly impacting prototyping demand [37][50] Company Strategy and Development Direction - The company aims to continue investing in growth markets, particularly in the Medical segment and factory management solutions, while focusing on cost control in the Manufacturing segment [51][52] - The launch of the Mimics platform aims to enhance the adoption of personalized solutions in the Medical segment [12] Management's Comments on Operating Environment and Future Outlook - Management noted that 2024 was a challenging year due to high interest rates, geopolitical tensions, and a difficult economic climate, yet the company achieved 4% growth [9] - For 2025, the company expects revenues to be in the range of €270 million to €285 million, with continued growth in Medical and Software segments, but challenges in Manufacturing due to the uncertain macroeconomic environment [50][51] Other Important Information - The company reported a strong balance sheet with cash reserves of €102 million at the end of Q4, despite a bullet loan repayment of €10 million [44] - Deferred revenue related to software licenses and maintenance fees increased by €5.9 million in Q4, totaling just above €59 million at year-end [27][46] Q&A Session Summary Question: Margin difference between recurring and nonrecurring revenue in the software segment - Management indicated that there is no large margin difference between recurring and nonrecurring revenue in the Software segment [60][61] Question: Average lifetime of the subscription - The average lifetime of subscription-based revenue is typically expected to be one year [64] Question: Granularity on increased R&D spend, ACTech start-up, and FEops integration - About half of the cost increase in Q4 was attributed to the three elements mentioned, impacting adjusted EBIT [65] Question: Changes in visibility regarding the fourth quarter - Management acknowledged that the industrial climate had accelerated in Q4, impacting results and guidance for 2025 [66] Question: Explanation for the increase in deferred revenue in the Software segment - The increase in deferred revenue was anticipated and aligned with seasonal trends, reflecting larger contracts at year-end [71][72] Question: Future operational expenses and cost control measures - Management confirmed a strong focus on cost control and optimization in 2025, particularly in the Manufacturing segment [77]