Good day. Thank you for standing by. Welcome to the Q2 2023 Materialise Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising that your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Harriet Fried of LHA. Please go ahead. Thank you, everyone, for joining us today for Materialise's quarterly conference call. With us on the call are Fried Vancraen, Founder and Chief Executive Officer of Materialise, Peter Leys, Executive Chairman, and Koen Berges, Chief Financial Officer. Today's call and webcast are being accompanied by a slide presentation that reviews Materialise's strategic, financial, and operational performance for the second quarter of 2023. To access the slides, if you have not already done so, please go to the investor relations section of the company's website at www.materialise.com. The earnings press release that was issued earlier this morning can also be found on that page. Before we get started, I'd like to remind you that management may make forward-looking statements regarding the company's plans, expectations, and growth prospects, among other things. These forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from the expectations expressed, including competitive dynamics and industry change. Any forward-looking statements, including those related to the company's future results and activities, represent management's estimates as of today and should not be relied upon as representing their estimates as of any subsequent day. Management disclaims any duty to update or revise any forward-looking statements to reflect future events or changes in expectations. A more detailed description of the risks and uncertainties and other factors that may impact the company's future business or financial results can be found in the company's most recent annual report on Form 20-F, filed with the SEC. Finally, management will discuss certain non-IFRS measures on today's call. A reconciliation table is contained in the earnings release and at the end of the slide presentation. With that, I'd like to turn the call over to Peter Leys. Go ahead, please, Peter. Thank you, Harriet, and thank you everyone for joining us today. You can find the agenda for our call on slide three. As the first item on the agenda, I will summarize the highlights of our financial results for the second quarter of this year. I will pass the floor to Fried, who will discuss our investments in a new facility for medical mass customization production in the U.S. After that, Koen will walk you through our second quarter numbers in more detail. As you may recall, Koen assumed the position of our Chief Financial Officer in May of this year, we've already experienced that he does bring a lot of valuable experience to the role, as you will notice, he has gotten off to a very quick start. Finally, I will come back to give you some observations about what we currently believe the rest of the year may bring. As always, when we have completed our prepared remarks, we will be happy to respond to any questions that you may have. Let's turn to slide four, which summarizes the highlights of our financial results. Our operational performance during the second quarter was very much in line with our very solid performance in the previous quarter. In the second quarter of 2023, we recorded EUR 64.8 million in revenues, representing a growth of almost 12% compared to last year's period. Our Adjusted EBITDA for the quarter, which was impacted negatively by the unexpected adverse resolution of an arbitration proceeding for a total amount of EUR 5.2 million, amounted to EUR 4.8 million, which is still a 12% growth compared to last year's period. In the absence of this one-time adverse event, our current EBITDA margin of 7.3% would have been 15.3%. As a result of this unexpected event, our net results turned negative to EUR 0.5 million negative or minus EUR 0.01 per share for the period. With that, I would like to pass the floor to Fried. Thank you, Peter. Good morning or good afternoon to all of you listening to this call. After the tailwind that we discussed a quarter ago in our medical business, we faced a serious headwind in Q2 2023 at the EBITDA level. Fundamentally, we confirmed the robustness of our profitable growth in medical devices and software during this quarter. In essence, the medical segment performed at a level of revenue and operational profitability even stronger in Q2 than in Q1, where we talked about the tailwind. If we want to ensure profitable growth in the longer term, we need to invest wisely in our medical activities. In the important U.S. market, our personalized implants are the major growth driver. Until now, Materialise manufactured titanium CMF implants solely at our 3D printing facility in Belgium. This will change when our new production line in Plymouth will become operational this summer. The new facility will not only provide capacity for further growth, it will also improve our service offerings strategically in the U.S. With the opening of this 3D printing line, Materialise will accelerate the delivery of patient-specific medical implants to patients in the U.S. Surgeons are increasingly embracing 3D printing solutions, as they recognize the added value these solutions bring to personalized patient care, including a more predictable and accurate surgical outcome and time savings during the surgery. At the new production line in our Plymouth facility, Materialise specializes in the 3D printing of personalized titanium craniomaxillofacial implants for the reconstruction of bone segments. CMF implants are used for facial reconstructive surgery, facial asymmetry resolution, bite corrections, as well as gender affirmation surgery. With a dedicated 3D printing facility in the U.S., we can respond to surgeons' needs with greater reliability, while significantly reducing the delivery time of fully personalized implants to less than a week for U.S. patients. This expansion of capabilities complements Materialise's existing production of 3D-printed surgical guides and models that existed already in the United States. It also expands our collaboration, which is a presented division of Johnson & Johnson, for the delivery of patient-specific instruments and CMF implants. Currently, Materialise produces 280,000 personalized, 3D-printed tools and implants per year, of which under 60,000 are for the U.S. market. The advent of technologies such as 3D printing and advanced visualization techniques has transformed personalized patient care. Patient-specific 3D-printed medical solutions include surgical guides to enhance the accuracy and the efficiency, anatomical models for diagnostic purposes, and finally, the reconstructive implants themselves. These solutions are designed to bolster surgeons' comfort before and during surgery, leading to more predictable and accurate surgical outcomes. As a result, surgeons increasingly adopt 3D printing as part of their medical practices to bring personalized care closer to the patients, while reducing overall costs for the healthcare system. Materialise has more than three decades of experience in developing FDA cleared medical solutions. We offer a comprehensive range of medical visualization and surgical planning software solutions. 3D-printed guides and implants are additional components to our solution that empower researchers, engineers, and clinicians to revolutionize innovation patient care. 30 years ago, surgical solutions were highly standardized. Patient-specific solutions were very rare for unfortunate patients that really had no alternatives. To the medical device industry, it was highly unprofitable to deliver personalized implant solutions, and as a consequence, it was only done in a compassionate care context. Materialise has pioneered numerous groundbreaking medical 3D planning and printing applications, and we continue to do so with our ever-increasing research and development efforts. We have built a leading position by changing the mindset. Now, patient-specific surgical solutions can be delivered in a cost-effective and economically viable way by the healthcare industry. Custom surgical solutions are still very valuable for the unfortunate patients in rare, complex situations, often overcoming the limits of current standard treatments. For instance, in 2021, Materialise innovative 3D planning and printing tools played a pivotal role in the world's first simultaneous double hand and face transplant, that was successfully performed at NYU Langone Health in New York City. Today, personalized implant solutions are also important for more patients that suffer from more frequent diseases or accidents. Thanks to mass customization, more people can benefit from the first time right approach and better quality solutions in a cost-effective way that enhances the quality of our healthcare systems. In 2017, we introduced one of the first personalized CMF implant portfolios in the U.S. This is an opportunity for the healthcare industry and for Materialise in particular. With the opening of our new 3D printing facility in the U.S., we bring personalized care closer to U.S. patients, and at the same time, thanks to our software offering, we bring the concepts and building blocks of mass customization also closer to the U.S. healthcare industry. The Plymouth facility acts as the regional headquarters for our medical and industrial software solutions in the U.S. Thanks to the expanded facility, we are now able to demonstrate even better than before, how all of our tools operate in a patient-specific context for real AM product development and for real 3D printing production lines, and on top of that, in a certified environment. Let me now pass the call to Koen. Thank you, Fried, good afternoon or good morning to you all. I'll begin with a brief review of our consolidated revenue on slide six. Please note that unless stated otherwise, all comparisons in this call are against our results for the 2Q of 2022. Revenue increased by almost 12% to EUR 64.8 million. The growth took place in all 3 of our business segments. Our software segment grew by 3.6%, our medical segment by 19.6%, and manufacturing revenue increased by 8.5%. The amount of deferred revenues from software, license, and maintenance fees on our balance sheet amounted to EUR 41.7 million at the end of June 2023, compared to EUR 42.8 million at the end of last year. Over the second quarter of 2023, Materialise Software accounted for 17% of our total revenue. Materialise Medical for 38%, and Materialise Manufacturing for 45%. Cross-segment revenue from software products represented 29% of our total revenue. Moving on to slide 7, you will see that our consolidated Adjusted EBITDA grew to EUR 4.8 million, compared to EUR 4.3 million for the same period last year, which is an increase of more than 12%. This represents an Adjusted EBITDA margin of 7.3%. The increase in Adjusted EBITDA follows our top-line growth, while we continued investing in R&D, which is key to Materialise's further developments. Importantly, as Peter already mentioned, our Adjusted EBITDA includes the negative impact resulting from the unexpected adverse resolution of an arbitration proceeding for EUR 5.2 million in May of this year. Excluding this one-time event, the Adjusted EBITDA margin for Q2 would have been 15.3%. Slide eight summarizes the results of our Materialise Software segment. Software revenue increased by 3.6% to EUR 11 million, driven by an increase of 7% of our recurring revenue from maintenance contracts and renewed licenses, including our CO-AM subscription fees. Revenue from non-recurring sales, on the other hand, decreased by 2.8%, reflecting our gradual transition to a recurring business model. Adjusted EBITDA for the second quarter increased from EUR 4.8 million last year to almost EUR 2 million this year, representing an improved Adjusted EBITDA margin of 17.9%. Moving now to Slide 9, you will see that our medical business continues growing at a solid double-digit pace of around 20%, both from software and medical devices solutions. Software revenue grew by 26%, while our medical devices business expanded across most of its business lines by an aggregate of 17%. Because of the unexpected adverse resolution of an arbitration proceeding related to our customized joint business for an amount of EUR 5.2 million, this quarter, the Adjusted EBITDA of our medical segment decreased to EUR 2.7 million from EUR 4.5 million. This is also reflected in the Adjusted EBITDA margin, which dropped to 10.8%. Nevertheless, excluding the negative impact of this one-time event, medical's Adjusted EBITDA margin would have grown to 31.6% this quarter. Let us turn to slide 10 for an overview of the Q2 performance of our Materialise Manufacturing segment. Manufacturing revenue grew 8.5% to EUR 28.8 million, boosted by our core manufacturing business lines and ACTech. Adjusted EBITDA for the quarter ended at EUR 2.7 million, compared to EUR 1.6 million for the same period last year, representing an improved Adjusted EBITDA margin of 9.4%. This result includes continued investments in our motion and eyewear business lines, temporary higher subcontracting expenses, while we await the startup of the new ACTech production facility planned for 2024. Slide nine provides the highlights of our income statement for the second quarter. Gross profit margin grew to 57.2%, compared to 55.2% in Q2 of last year. Despite continued inflationary pressure, tight cost control helped us in bringing our operating expenses down by 1.3% compared to the prior year period, to an aggregate of EUR 33.2 million. While sales and marketing and general and administrative expenses decreased, respectively, by 5% and 2%, we increased our R&D expenditures by 6%. Net operating income amounted to negatively minus EUR 4.5 million and includes the negative impacts of the earlier mentioned unexpected adverse resolution of an arbitration proceeding for EUR 5.2 million. As a result of these elements, the group's operating results was negative by EUR 597 thousand, compared to a negative operating result of EUR 1.084 million last year. The net financial income for Q2 was EUR 635,000, and included growing interest income from our cash deposits of around EUR 1.1 million. Net loss for the quarter was at EUR 494,000 or EUR 0.01 per share, compared to a net profit of EUR 896,000 last year. Please turn to slide 12 for a recap of balance sheet and cash flow highlights. At the end of the second quarter of 2023, our balance sheet remained strong. Cash amounted to EUR 136.3 million, while our borrowings position further decreased to EUR 72.4 million. resulting in a mid net cash position at the end of the second quarter of EUR 63.9 million. Cash flow from operating activities for the second quarter was EUR 775,000. Our operating cash flow consisted of income statement components of EUR 5 million, while our working capital increased by EUR 4.2 million. Capital expenditures for the quarter amounted to EUR 2.1 million and were not externally financed. With that, I'd like to hand the call back to Peter. Thank you, Koen. At the beginning of 2023, we said we expected our full year revenues to be between EUR 255 million and EUR 260 million. After our solid results in the first half of the year, we believe we are well on track to post full year revenues close to the high end of that range. We reported, roughly three months ago, our first quarter results in April, we increased the expected range of our year-end EBITDA by 10% to an amount between EUR 28 million and EUR 33 million. Today, our strong operational results of the first half of the year allow us to maintain our EBITDA guidance, and this despite the EUR 5.2 million adverse arbitration award that we did not expect at the time of our previous call. With this outlook, I would like to conclude our prepared remarks. Operator, please go ahead and open the call to any questions. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Troy Jensen of Lake Street Capital Markets. Please proceed. Hey, gentlemen. congrats on the nice Q2 results here. Thank you, Troy. First, I guess I wanted to focus on just some of the profit margin stuff here. 15.3% Adjusted EBITDA, is that, is that record, recent record levels for profitability for you guys? Yeah, yeah, definitely on the high end, we had previous quarters that were a little bit better, like the first quarter. It's definitely among the better performances. Yep, obviously a lot of our strength in gross margins. I guess, you know, question would be on the lines of second half expectations for gross margins. Can we stay above this, 57% level? Also on EBITDA, Adjusted EBITDA, I mean, do you guys think you can run at 15%+ here in the second half? Well, typically, we have some seasonality, and the third quarter has been proven consistently, a little bit worse in previous years. Yeah, you also know that the fourth quarter is normally our best quarter. Over the second half of the year, it will be approximately consistent, but with a differentiation between the two quarters. Great, great. Congrats, guys, on this profitability level. I mean, excluding that $0.09 hit, you guys did really good here in Q2. Other questions I want to hit, I guess, on the medical side for you, Fried, CMF, is most of your business titanium? Just your thoughts about PEEK versus titanium in CMF applications? Well, indeed, titanium implants are the major growth driver. We still have a very considerable part of the cases we support that are done with just the guides and models as well. It's not always that the surgeons opt for patient-specific implants and patient-specific guides and, yeah, patient-specific planning also contribute to still a majority of surgeries where no patient-specific implants are used. Some of those can indeed be with PEEK implants as well. In our experience, it's still a minority. Okay. We believe the titanium is very competitive. Even if PEEK grows, you guys can obviously make PEEK-based DMS parts. At this moment, we strongly believe in the added value of titanium. I see. Okay. All right, that's interesting. I'll switch gears here. I know I'm asking a lot, but just the 3D software business, seems like you guys are kicking butt here in, you know, medical and manufacturing. In 3D was, you know, down sequentially, I think deferred growth dropped a little bit sequentially. Can you just talk about, you know, what's going on competitively and, you know, link integration or Link3D integration, and just, you know, when you think we're gonna start to get better growth out of that software business? Yeah. We face for our software, a challenging investment climate at the moment. As far as we can judge, this is not only for us the case, it's even beyond the pure additive manufacturing-related software industry. Software, in general, is facing a difficult investment climate at this very moment. That doesn't, yeah, doesn't mean that we don't have also some internal transitions that are taking place from our previous model, where we sold perpetual licenses to annual licenses and subscription models. Which is a transition that for our medical software has been ongoing already for five years, and that we more recently intensified for the industrial software business. That is also impacting our revenue growth because if you sell perpetual licenses, you see an immediate revenue recognition, while annuals are, let's say, less recognized as revenue. On the other hand, have a more long-term recurring revenue impact. Finally, we have that transition from engineering tools with Magics to the growth that is also coming from CO-AM, which is a more company-wide, or at least AM facility-wide investment, that is much more strategic and that we want, but we also experience that those investments are not made lightly, especially at this moment in the current investment climate, and that is challenging. Of course, we also have to deliver those softwares, and that is also taking longer than delivering an engineering product. The combination of all of these factors currently seriously weigh on the, yeah, growth of the software business. Got it. All right, you guys, well, once again, keep up the good work, and good luck on the second half. Thank you very much, Troy. Bye. Thank you. One moment for our next question. Our next question comes from Alexander Craeymeersch of Kepler Cheuvreux. Please go ahead. Hi, good morning. Also from my side, congratulations on the nice set of results. Maybe a first question to the new CFO, Koen. Just wondering how you are settling in your position, and what are your main priorities at the moment? I'll start with that. Thank you. Thank you, Alex. It's been a very interesting journey so far for me. I've had a chance in the last two months to meet a lot of people in the business, both in finance and also outside finance, trying to understand the business that we're in, and then all the strengths and weaknesses that can be found there. For me, I think it was very interesting to learn all of these. For me, the key priorities is to continue delivering really financially a good process of financial results. That is a process I think that works quite well. I think the challenge for us is like Fried already indicated, to continue that journey towards even more recurring revenues, especially in our software business. We're taking further steps also to help support that from a finance point of view. Okay, thank you. Maybe if I can just elaborate on that recurring revenue side. I saw that the order book or deferred revenue has actually decreased versus Q1. Maybe this is normal, but I'm just wondering what was the exact reason for that, if you could explain that, please? It's indeed correct, Alexander, that we saw a temporary decrease of our deferred revenue that we carry on the balance sheet. That is also partly due to timing effects. We noticed that, for instance, especially also last year, we sold still quite some multi-annual licenses in the second quarter. Of course, differently from annual licenses, then they don't come up for renewal one year later. That is a trend we of course we are watching, but that impacts our deferred revenue in the second quarter indeed. Thank you for that. On the manufacturing, very interesting to see the AC Tech finally coming up. Just two questions on that. One, what would now be the obstacles for you and your clients to get the manufacturing side more attractive, and that your capacity is actually more filled, so also the margins can get a bit higher? Yes, also on that part, I was just wondering if you could just maybe elaborate on the difference in costs versus the subcontracting and the in-house manufacturing for the AC Tech factory. You mentioned that in your reports specifically. I was just wondering how much the difference is, so we can maybe put an analysis forward. Yes. Particularly in relation to AC Tech, we currently face two capacity issues. The amount is really higher than what we can deliver. Yeah, AC Tech is active in a market where fast delivery times are also really important to the kind of heavy-duty industries and automotive industries they are supplying. That is why we believe that we have, yeah, serious growth potential on the one hand, and secondly, why it is expensive to subcontract. Because we have to ask our system contractors also to deliver very complex and big components on very short notice. Of course, they also ask some premium prices for this. I cannot give you a very clear indication of how much the difference exactly is, simply can't. We are confident that we can increase our EBITDA margins further with a few percentage points if we can produce in-house. Maybe to ask, what's the goal there in terms of percentage points or at least, EBITDA margins for the future? Like I said, it's really difficult to give this an accurate estimate. I prefer not to give you a clear indication at this moment because I simply can't. Okay, thank you. Maybe as a, as a final question, I mean, now that we're going in the second half, we were already almost the end of July. What's your visibility typically at the midpoint of the year towards the second half? How does that visibility lead you to project your guidance at the moment? Considering that the last guidance was actually a little bit conservative, given the EUR 5 million impact. Luckily, it was sufficiently conservative to completely compensate for that, for us, rather big, worse effect that we experienced with the, yeah, litigation outcome. There is a difference, I must admit, when you asked me the same question last quarter, I could say that while there were in the market quite some rumor, not just rumors, but companies that announced they experienced some downturn on the economic environment, that we were very positive and we didn't see anything of it in our, yeah, quotation levels and in the way the market was demanding services from us. I must say, at this moment that we see a decline in quotation re-requests. The effect on our output is still limited, but we must admit that the economic climate, for us in particular, is a bit more negative. I won't exaggerate it, but it's a bit more negative than it was a quarter ago. Maybe it has to do with the summer holiday period, but anyhow, it is worse than a quarter ago. Okay, thank you very much. Again, congratulations on the nice set of results, and talk to you soon. Thank you. Thank you. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. I see no further questions, so I would now like to turn the conference back to Peter Leys for closing remarks. Thank you, operator, and thanks again to all of you for joining us for our Q2 call today. We, of course, look forward to continuing our dialogue with you through investor conferences, including the Lake Street conference that we intend to attend in mid-September, or in one-on-one virtual meetings or calls. Please reach out to us should you need any further information. Thanks again, and goodbye for now. Goodbye. This concludes today's conference call. 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