Hello, and good afternoon. My name is Holger Nass, and I welcome you to Hönle's earnings call for the first half of the fiscal year 2025, 2026. The results will be presented by the CEO, Dr. Franz Richter, and the CFO, Robert Stark. Like always, we will follow the presentation with a Q&A session. In case you have any questions, feel free to use our chat box, enter the question, and make sure to preface the question with your name and your company name. We will record this event, and you will be able to review it later on ResearchHub. We do cover Hönle AG, and in case you have any interest in the research, I will post the link in the chat box in a few moments. That's all I have from my side. I now pass it over to you, Dr. Richter. Yeah. Thank you very much, and also welcome from my side, from our side. We would like to go through a short presentation about the numbers and then enter in the Q&A session. The first half year of our fiscal year 2025, 2026 ended with increased results from the second quarter compared to the first quarter, from EUR 21.5 million in Q1 to EUR 23.8 million. The market environment is still a little bit difficult, so there is basically still a reluctance in the investment activity in the plant and mechanical engineering, so the bigger systems, what we see especially in the BU Curing. The other business units, Adhesive as well as Disinfection, saw a better, saw a more active environment. We have positive results in both of those and the trend is directed upwards. In the group, we have a gross profit of EUR 30 million, which is a little bit up compared to the first half. Also the EBITDA is up compared to the first quarter and it was significantly up. It was a very difficult first quarter. It was almost break even, so EUR 0.5 million, and now we are at EUR 2.2 million in Q2, ending up to EUR 2.7 million EBITDA for the first half year, which is a little bit below, but almost on the same level as the first half year in previous fiscal year. With this introduction and this overview, I would then ask Robert to go a little more into details, and we will come back later with a summary. Okay. Thank you, Franz, and also a warm welcome from my side. I will guide you through some further financials of our half-year result in terms of profitability, sales and our capital structure. On this slide, you see our quarterly revenue and EBITDA margin development. What we see is that our business in terms is project-based, this naturally leads to fluctuations from quarter to quarter. Particularly true this is in our business unit Curing, where larger equipment projects can materially influence the timing and the revenue recognition and also the margin contribution from quarter to quarter. Looking at the quarter-over-quarter development, Q2, as Franz said, was significantly stronger than Q1. Revenue increased by more than EUR 2 million, and EBITDA margin improved to around 9%. This was mainly supported by a better product mix, still a strict cost discipline and the fact that the cost of materials ratio improved also compared with the prior year. Let me turn to the business units, starting with Adhesive Systems, revenue amounted to EUR 17.4 million, slightly above the prior year level. EBITDA increased to EUR 2.3 million, up by around EUR 0.3 million year on year. This improvement was mainly driven by a better product mix. We had an optimization of our order structure, so less small volume orders, and we had efficiency gains in our production and logistics. Within this business unit, the equipment sales for the adhesive curing remained affected by the customers' reluctance to invest. There were several customer projects supported the adhesives business on this case. Strategically, Adhesive Systems remains focused on demanding applications in electronics, medical technology and optics. Turning to Curing, in Curing the picture remains more challenging. Revenue declined to nearly EUR 40 million, down 18.6%. EBITDA was minus EUR 1.3 million. The decline was mainly driven by continued investment reluctance in the mechanical and plant engineering. This affected both. It's both in the printing press applications as well as industrial surface coatings. In addition, we had challenges throughout the insolvency proceedings of Manroland Sheetfed, one of our bigger customers, and compared to the last year, the discontinuation of our solar simulation systems business. These factors contributed to a lower revenue level. On the cost side in this business unit, the restructuring measures we implemented had a positive effect. We see positive effects on the personal side to lower expenses. However, given the sharp revenue decline, these savings were not sufficient to offset the volume effect of the first half year. Going forward, our priorities still remain. Clearly, it is a strict cost management. It is a more focused product portfolio and within the engineering and also development in our production and a stronger push in our after-sales business and the lifecycle solutions. To our Disinfection business unit, continued a positive trend, revenue increased to EUR 14 million, up nearly 8%. EBITDA rose to EUR 1.8 million. The main driver here was higher sales of UV lamps and equipment, particularly in the field of water disinfection. We are also building up sales capacities in North America and Asia, which increases our personal expenses on this side. Overall, the business unit picture confirms our strategic logic. Adhesive Systems and Disinfection provide profitable growth opportunities, while Curing requires continued restructuring and portfolio focus and a stronger sales execution. Let us move to the financial profile. Despite the weak market environment, our cash generated from operations amounted to nearly EUR 2 million in the first half year. This was supported also by working capital management. Cash flow from investing was minus EUR 0.7 million, reflecting investments in property, plant, equipment, intangible assets. The cash flow from financing activities was EUR 1 million, mainly driven by repayments of our bank liabilities and lease liabilities. Cash at the end of March stood at EUR 7 million. Our net financial debt decreased to EUR 38.8 million, compared with nearly EUR 45 million end of March last year and nearly EUR 50 million end of year 2022. This means we have continued to reduce our net financial debt over time. Our equity amounted to EUR 76.6 million. Equity ratio was around 53%. The balance sheet therefore remains robust. Also here to mention that a significant part of our financing relates to our corporate real estate and buildings, and these are long-term secured also with attractive interest rates. Given that, I would like to hand back to Franz for our outlook. The outlook, I mean, we had issued the guidance, revenue EUR 95 million to EUR 105 million and EBITDA EUR 6 million to EUR 9 million. We also had said that depending on the market environment, with difficult market environment, we are looking more and we are expecting more on the lower end of the revenue. At this point in time, we still see that as realistic. We are maintaining with this guidance, with the published guidance, we expect that we are in the lower half of the guidance range will be the outcome of that year. Of course, everything is depending on the market environment, as I think everybody knows right now, a very unpredictable, so far it looks like that we will stay in that guidance. With this, I would hand back to the operator, and we are ready for your questions. Thank you so much for the insights. Let's jump right into the Curing business, and one of the question reads, "Q2, we saw some sequential improvement in Curing. Is that sustainable, or was it rather project timing? In reference to that, can you confirm that the bottom in Q1 had been reached? I mean, it's always difficult to say whether the bottom has been reached. I think we are in, and like I said, in the market environment is one reluctance of big investment is one. We also have some internal topics. We have new plant plans coming to the market around third quarter, calendar year quarter, means our last fiscal year quarter. Therefore that is a little bit a mix, but it's difficult to say whether the bottom has been reached right now. We are fighting for each order, of course, and try to, yeah, get those orders which are available in the market. Thank you. Can you give us a little bit more granularity, a little bit more background on Manroland Sheetfed, how big of a client they were and what the impact is as a base going forward? I mean, that's, it depends on which time frame we compare. A couple years ago, I think it was more in the, what was it? EUR 3 million, 4 million range. The last years was already slowed down, so therefore, right now that is probably what would be, did we have last year? I don't know exactly. Manroland was, Shy of EUR 4 million. it's about EUR 4 million. Three point x. That definitely will have an impact, and we have to see how much that really is what will continue. For the time being, we expect still some work from the lifecycle solutions. Those systems which are in the market are still running. It's still a business where we do service spare parts with those customers, but the new equipment will have an impact. Thank you. Can you give us a little bit more understanding of what your plans are regarding continuous restructuring of the Curing unit? 'Cause there seems to be, or there seems to have been issues for a while now. How do you wanna deal with that and are there immediate plans or just continuous plans that you have? No, I mean, there's two issues. One is, of course, the orders where we are fighting with the systems we have in our portfolio, which are high in price compared to an upcoming competition, which is stronger and stronger, coming also from Southeast Asia, from China. There are new products coming. The development products are running, which cover those topics where we have a significant cost reduction in those systems that also in the future we will be very competitive here. The other one, of course, is with the reluctance in market here, we show more activity in the field of having more activity in direct communication with the customers to make sure we, yeah, we comply to what they expect, what they need. It's just more sales activity. Do you plan to diversify internationally further in the Curing business? I mean, this is not the first topic because, I mean, we are more diversifying into other applications than just printing. I mean, there is the, let's say it's classical offset printing, where we have the biggest difficulty, but there is other markets like the digital 3D printing, label printing. Here we are, we do see still activity where we have to adapt our portfolio a little bit, and that is basically in the makings. Other regions, I don't see that we have some issues here. Install base lifecycle solution, that might be an topic where we will be more aggressive in markets outside of Europe, because there's install base where we have today we have not a lot of access to those customers. That is something which is, yeah, also in the makings. Expanding in direction new, let's say, organizations in those countries, I don't see. Can you give us an idea of how big of a cost reduction in the Curing Business you're looking at in% of cost of goods sold, if that's possible? I think that's difficult. We have a restructuring program also in the field of our purchasing. That relates also to our engineering and design and how we will be able to have a platform, a modular concept. This is really difficult to put in a concrete percentage. We are working onwards on the reduction of our materials, and I think we see also a progress in our materials or cost of goods sold ratio. We try to reach and continue this positive trend on this point. Do you have any costs associated with Manroland now that are burning your P&L? No, the orders we had on hand are still executed. This is done. As I said, the spare part and service business will continue because it's not directly from Manroland, but from their customers. I mean, there is not a significant burden right now. No from the existing orders. Okay, great. Thank you. Looking at the overall business development in Curing, you mentioned 2 bigger impacts. One of them was Manroland, and there was another 1. If we leave those 2 asides, top line-wise, were the other clients developing as in the past years, or did you see a negative impact on that as well? I mean, there's still this what we call the base load of orders which is coming in. It's a little bit up and down, of course, the main, yeah, difficulties are right now is that our, as I said, our product line. These are basically two different product lines which are from a development standpoint, a little bit behind schedule that has been pushed to improve. For end of the year, our fiscal year, third calendar quarter year, that should be available where we will have a much better position in comparison to our competitors. I mean, that is something which is difficult to say right now, although I have to say a little bit. On the positive side, we have a very good customer-client relationship for some customers stick to us, to Hönle. I mean, we cannot overstretch. I mean, we also have gotten information, Koenig & Bauer, which we lost an application where we had a system, that is due to price, to cost structure. Here's where we have to go through transition that our cost structure, our designs are a little bit out of date and get updated. Thank you. Looking at the Curing again, what were the latest development, let's say roughly over the last three years that gave you a USP in this area? Or were there any products with a specific USP, or is it? I mean, it's. the margin? Yeah, I mean, it's the latest development. I mean, that is a little bit what I see as the difficulty is the real latest, the last new product is quite a while ago, and that is also basically the reason why we are changing also a lot from management structure that we have to focus more on product development than we did in the past. There is still our top product, which is what we call the focus line, which has an optic included and can work in a distance of six to eight centimeters, 60, 80 millimeters. It's really for an LED system, a significant exposure gap, so to speak, which is basically the best in the market. Also the price is very high, and that is a burden. Here we have a development, as I said, where the cost will come down significantly. Then I would probably say that is in a 25%-30% cost reduction, which is what I can see here, which will change the picture again. Thank you. Just a question of structure and responsibility. Looking at the Curing unit, who is in charge of the Curing unit, respectively the restructuring of the Curing unit? Is that matrix or is that in your hand? No, I mean, that is something where we, both of us, Robert and I take responsibility and lead that process here. Because that is really the business unit here engaging in the AG, where we have a significant restructuring in front of us. That is led by us, both of us. Okay, great. Give me one second. I'm just sorting some questions here, and while I'm doing this, let us move on to the next business unit, which is Disinfection. The question is regarding Q2 margins, which were softening in Disinfection in Q2 despite significant top-line growth. Was the margin pressure due to investments in the international sales capacity, i.e., higher costs on that end? If so, when should we expect this investment to start contributing meaningfully to growth and expansion? Yeah. Basically, the contribution will come. We have new people in sales, as written in the U.S., also in China and in South of Europe. This was definitely one effect. We had some stronger equipment systems business. That's also a product mix effect between the lamps and the components, which have very high margins, and then the systems business with a little bit lower margins. These are effects for the margin on this point. Okay, great. Thank you. Can you tell us what the current sales contribution for markets abroad are in Asia and in the U.S., and what the expected target level in a 2 to 3-year timeframe would be? In the Disinfection business, we are developing still U.S. and Asia. In the past, we didn't have really a sales organization. We put here new people. In both of the fields, we are talking in China less than EUR 1 million, and in the U.S., shy of EUR 1 million I would say. The business abroad currently is on a low level, but with the focus to increase that. Yeah, target levels, I don't know, Franz. No, I'd say. Let's continue with the next question also on the disinfection business. If you look at the material cost ratio in, I'm sorry, no, we're moving on to the adhesive business. The optimized material cost ratio and the adhesive solutions based on the specific product mix, i.e., the increase, the optimized, the better material cost ratio, was that based on the specific product mix, or were there other benefiting factors? I mean, in principle, the adhesive, as you know, is a consumable, and the material itself, the raw material is not the main cost contribution. With other words, the gross profit margin or the gross profit is usually a very high margin in the 70%-80%. The cost really is in the formulation, in the qualification, and if that job is done, then it depends purely on whether the customer orders 1 kilogram, 100 kilograms, or 1 ton, which makes a big difference. As we have said before, the goal here is, of course, get back to higher volume order sizes or higher volume orders. That is basically by increasing prices for the minimum volume, so the minimum price level, we have increased and introduced. Through our activities going into technology days with customers, getting more introduction and more interaction with the bigger customers to come to our higher volumes again, that is working positively, but we do not see. That is not the biggest contribution here. I think a slightly increased order volume, product mix, that has contributed positively. Of course, a minimum price level, which probably is not really in the quarter, in the first, second quarter figures so much. It'll come more in the third quarter. Great. If we look at Q2 and the demand development in the adhesive solutions business, we saw a lot of demand coming from multiple projects. What kind of application cases did these relate to? In your opinion, is the elevation of demand expected to have more of a recurring component or be a flash in the pan? I think right now we are still seeing a broad mix of application. We have a defined focus field. Of course, a big opportunity is always the electronic as you see in the consumer electronic or the electronics, also the optical part. There's a lot of shrinkage, a lot of integration, technical integration. That means more and more application for adhesives. Here is one strong focus on that we are more and more talking and try to get more introduced and more and more interaction with the bigger customers who are defining the system and define the technology they use. Usually there's some by having technology days with our technicians, their technicians, so that we have an exchange here and can introduce what we can offer and that leads slowly step by step to a higher volume. It's a time-consuming process because no material will get into volume manufacturing just by one presentation, but it has a positive effect starting slowly. Great. We have, a lot more questions circling around the electronic AI growth opportunities. Yeah. Let me start with this one. Are there arising new opportunities in electronics owing to the strong activity around AI hardware? If so, what does the timeframe look like? As I said, I mean, we do have positive discussions. I'm very happy that this happens again. It's too early to say. I don't want to overstretch here and to heat up expectations. Too early. It will take time. As I said, the designing process, the qualification process is a time-consuming process that will take 2, 3 quarters. It will start with lower volumes first, but really to see a volume effect, which definitely would be very interesting for us. That will take some time. Yeah, there are discussions ongoing with, I would say, with the right customers on the right format. Can you give us a quick update on the integrated solutions strategy in the Adhesive Systems business following the restructuring last year? Do you have any customer traction in that space? I mean, there's a it goes on both sides. I mean, we do have curing equipment which is used by customer using other material. As I said, the design-in process of material and volume production takes time and is a time-consuming process. If there's material already qualified, it's qualified for that product series as long as it runs. If they use different equipment, we supply equipment and vice versa. We do have applications where we sell material where the customer already has equipment. It's very helpful, and it's very interesting. You always need a door to enter a customer relationship, an in-road. That is definitely possible with our equipment companies that we can also bring in adhesive salespeople, adhesive technicians. It's progressing. It's an interesting interaction, but it's still room to optimize. It still can grow. Great. I have one question that we basically already answered. I still wanna pose it, though, just in case you want to add anything, which is your view of the overall opportunities in the semiconductor industry regarding Adhesive Systems, currently discussions with potential large clients, and particularly in the rapidly growing AI photonic space. As I said, first of all, giving my history in the industry, the semiconductor. We talk here basically about the integration, the packaging, which is more and more going into optical applications, optical communication, interchip communication. There are more and more applications, and we have to be part of that discussion. It's an attractive market, it's growing market. We do have the right contacts, but of course, it takes time to really see results coming out of that, because, yeah, as I said, design-in a mass production series is There's a lot of qualification steps to be done before. It remains a very attractive market. As I said, it's chip integration, the packaging. The package become bigger and bigger, more and more integrated, especially with the AI application and more and more co-packaged optics application where we need to introduce adhesives where more and more connection and glue applications and adhesive applications are requested. There is a very interesting area also for us. Great. Can you quickly talk about ultrapure water a little bit? The opportunities that you see, size and timing also, because there seems to be a lot of demand developing in that space. Can you give us some color, please? Yeah, the ultrapure water application, I mean, the first development was done with an IC manufacturer here in Germany, in Dresden area. Basically that application is now introduced to bigger customer in Asia, especially in Taiwan right now. That is also very attractive market. As always in those things, it takes a little bit of time, but we are seeing a positive response from those customers because the systems which have proven in production environment here is a very good reference for us. Great. Thank you. I've got one more question which is dealing with a trade deal between the EU and Australia, which in particular is expected to provide opportunities in equipment exports on account of lower tariffs. To the person who's asking the questions, understanding you're already engaged in Australia through distribution partnerships. While it may still take a few months for this deal to really come into effect, are you looking at intensifying your business volume and presence in Australia in 2027 going forward? Australia, also South America. South America, as I said before, briefly, especially with the retrofit, with conversion. It's a very attractive idea to convert established and also installed UV lamp systems with LED systems. There is basically what we have shown cases where you can have a Return on Investment of 1.7 years for switching from a classical UV lamp to an LED system. Given the huge installed base of 7,000 systems in the field, there is a focus from our life cycle solution to come up with packages for those. That's of course also with the new tariff situation, and contracts we can do in South America, Australia is attractive. South America has a, yeah, significant industry which would fit. Thank you so much. It looks like we are out of questions, so thank you very much for the very broad array of questions that we had today. This is one of the livelier earnings calls we've had. Thanks everybody for attending and for your interest in Dr. Hönle AG. As I mentioned, we did record this call, and we will post it on ResearchHub later. Franz, Robert, thanks so much for the insight that you shared and the answers you provided to the questions. If there should be any open questions or additional questions coming up, please feel free to contact Mr. Weinert of Dr. Hönle AG or also of course our analyst who stands ready to take your questions. Wish everybody a great afternoon, and if you have a second, we send out a quick questionnaire for your feedback, which would be greatly appreciated. If you have a second, please fill it out. Thanks so much everybody. Thank you very much also from our side for participating this call, enjoy you very much. Thank you. Thank you. Super. Thank you, and a good afternoon. Bye. Bye.