Theon International (Euronext:THEON) — Investor Presentation

0:00 Good morning, and welcome to THEON INTERNATIONAL PLC investor presentation. Throughout this recorded meeting, investors will be in listen only mode. Questions can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. Just simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself. Have the company review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I would now like to hand you to Philippe Executive Director, Deputy Centimeters Business Development Director. Good morning, sir. Thank you, Paul. Good morning, everybody, and thank you for joining us today. I am Philip Menikin. I'm the deputy CEO of THEON INTERNATIONAL and the business development director.

0:48 Today, I'll be taking you through an overview of THEON, the business model, operations, recent financial results, and an outlook ahead. As I understand, we have here quite a few people that may hear first time about us. So for for those who know us, you may hear things that you already know, but it's never bad to to hear things again, and maybe that improves the understanding as well of of what we do. As a short introduction to myself, I'm a Belgian national, but I've been living in Greece for many, many years. And I have been with THEON for more than fifteen years. When I arrived at THEON, it was a small company with around thirty, forty people and maybe 8 or €10,000,000 revenues.

1:38 And since then, I have witnessed an an incredible growth journey that we have been on, which is the result of a very hard work and I I'd say a unique business development DNA that we have within the company. Actually, we had to work twice as hard and I like always to to to say this as as as as anybody else in in the industry because we had to overcome many prejudices in the market being being a Greek company and not a US, German, French, or or British company. We had to gain the trust of of our customers, which we did. And today, we are indeed a brand and a reference worldwide.

2:29 Just a second. Alright. So for those who are unfamiliar with THEON, we design, develop and manufacture high-tech military optronics for both man portable and platform based use. What does that mean man portable and platform based? As simple as as the word say, man portable is anything that that the operator, the soldier, wears on his or her her body, goggles, sights, anything like that. And platform based, any optronics that go onto a platform can be an armored vehicle, a drone, a naval vessel, whatever it may be. With over twenty years in the market, as a pure play defense supplier, we established ourselves as a global leader in our field.

3:20 And definitely, we are the global leader today when it comes to night vision, man portable night vision equipment. What differentiates us is besides the unique business development DNA that we have within the company from from from the business development department down to production and and and engineering departments. It is really our ability to deliver fully customized solution, which is something that have we have been doing from the very beginning of the existence of the company where we design and adapt our products to operational needs. We listen to the customers as simple as it may sound, not everybody does this, and we implement what the operator who knows best what he needs tells us to do as long of course it's within the laws of physics.

4:09 So, as I said, this approach has enabled us to build long term relationships with our customers who trust us. And this is really crucial and the crucial element of our business success because when we have these long term relationships with the customers, they trust us and they give us business, especially in these times where product availability and and fast deliveries are crucial. Over all these years, we have introduced a a focused portfolio of man portable and, as I said, also now platform based optronics with relatively low CapEx and r and d investment, an element that contributed as well to our star of innovation awards last November.

4:57 We have delivered more than 250,000 systems across 72 countries, including 26 NATO member states. Historically, over 90% of our revenues have come from night vision equipment, which is our bread and butter business in which we are the world leader. And as you can see, we have a high growth, which was even present before the beginning of the Ukraine war. And we have market leading and a very strong profitability. Just like the ancient Greeks established trade outposts outside of Greece, we also established local presences worldwide, wherever it makes sense and especially in industrial presences, where we also want to give something back to our customers, to the economy, to the the country.

5:52 So here you can see our expanding global presence. Obviously, main facility and the headquarters of the company are in Athens where I'm sitting now, where we have around 300 employees. The facility is around 8,000 square meters, and we plan to increase actually, behind me, they are digging at the moment the ground to build our new third factory here in Athens, which is going to increase the available production capability or capacity even further expected in Q2 twenty twenty seven. If we look at the global map, we have a strong focus on Germany, which is a very, very important and trusted customer of ours.

6:42 We have a production site in Wetzlar as a joint venture together with Hensold. We invested into HARDA Digital and Kappa as well as Andres Industries. I will talk a little bit more about this just in a while. Have a presence in Denmark where we have a repair and maintenance hub. Now in Belgium, we have a factory fee in Belgium that focuses on thermal equipment. The US, obviously, an important market to us. We have co production with Eotech. We have as well subcontracting and equipment supply to Elbit Systems of America that then produces and delivers our equipment to the US Marine Corps. We have cooperation and investments in US companies, Imagine, Alerion, Copin, and more about these companies. Later, Shock Eos in South Africa.

7:32 In The Middle East, we have co production sites in The UAE as well as in Saudi Arabia, and last but not least, in South Korea. We have THEON Saudi through which we increase as well our industrial presence in the Asia Pacific area. As a THEON Group total, we are now close to 1,000 employees. Now, considering the business model very briefly. We control the full process. So it's our design, it's our development, we test the equipment and we produce and assemble this equipment. So we tap in Greece here in a pool of high caliber engineers and have also access to skilled workers.

8:20 All of this at a pretty competitive cost, if I may say so. We are renowned for our on time delivery and as trivial as this may sound, again, this leads to trust and additional business. And I always like to mention that, especially in Germany, when we talk talk to the head of the procurement of the German Army or as well the OKR Director and another personnel, they all typically praise us for our on time delivery, which I said is not a given the business, but we are proud that we stick to this. We do have sufficient production capacity at the moment to serve our customers in Athens and our various production sites around the world. And as I said, we expand this capacity just behind me to serve our customers as well in the future.

9:18 If we come and have a quick look at our trading performance since the IPO in 2024, I'd like to say that our share performance has been exceptional. We are listed in Amsterdam, a part of the Euronext, which is establishing itself as a hub for defense listing. We IPO ed with a valuation of of around €700,000,000 at the time and a 20% free float where we raised close to a €100,000,000 in funds, you know, to fund our initial m and a strategy, which enabled us in an initial move to acquisition of a majority stake in Haber Digital, which is one of the four image intensifier tube manufacturers in the world.

10:05 And which is important and I will tell you a little bit more a little bit later, because image intensifier tubes are the main components of night vision system, are the detectors. And the global supply of these detectors, of the tubes, is short and hence the investment into Hade Digital in the first step, which we did initially right after the IPO to strengthen the supply chain for the tubes. Following the strong investor demand, we then executed two secondary placements of existing shares to improve liquidity and later completed as well a share capital increase in December. Our main shareholder, he is the founder and CEO of THEON INTERNATIONAL Christian Hajj Minas participated in the race which reinforced confidence in the business plan.

10:58 And the proceeds of this race basically supported the acquisition of a 9.8% stake in Exosensch, which is another image intensifier tube manufacturer. It's the second tube manufacturer in Europe and one of four global tube manufacturers and actually the only producer of 60 millimeter tubes. So this was a strategic investment basically to secure the supply chain amongst other reasons, of course. And last but not least, our market cap today stands at approximately €2,500,000,000 So let's have a move on to the overview of our products and the markets we operate and provide you some color on the recent acquisitions and the strategic partnerships that we have worldwide.

11:52 Starting with the products. First of all, we divide them into two main categories. It's the man portable equipment and platform based equipment. So here, we're talking about on this slide man portable category. There are two main types of equipment, night vision and thermals. The night vision is what we call analog equipment and the thermal is the digital equipment. So night vision, the the major part and the major part of our revenues are night vision goggles, which is the first thing that any any soldier needs to to have in order to operate in the night. You need to be able to see in order to to operate. And then you have a variety of weapon sites, which is the second thing with which you would equip a soldier for night fighting capability in order to to target and and and to aim during night combat operations.

12:44 On the thermal or the digital sides, we have a variety of of weapon sites. We have fire control systems. What are fire control systems? These are systems that have nothing to do with fire. It's with with with shooting, basically. They they increase the accuracy of of the targeting so that basically the first shot basically goes on to the target. And in times of ammunition scarcity, this is a big advantage to have and it protects the soldier as well because if you hit the target as a first shot, the risk to be to be hit back is obviously much much lower. And of course, we have as well some customized solutions on the thermal and fire control systems on the digital side. Last but not least, and we have as well a new category, let's put it that way, of products which is called ARNED. ARNED is short for augmented reality modular ecosystem of devices and the armed ecosystem basically combines both technologies, night vision and thermal.

13:55 So what it is about this this this armed products? Basically, the future warfare requires the soldier to have a better awareness of what's going on in in the battlefield. And to have this awareness, the soldier needs to have access to data. This basically means that the soldier needs to be connected. It needs to be the soldier needs to be connected to a battle management system, to command and control center that can then provide the soldier with crucial information of the battlefield, but at the same time, the soldier can feedback information to the the command and control center. And the soldier needs to be equipped with a better vision of of of the battlefield. And here comes fused vision into play where you fuse night vision and thermal technology onto one screen.

14:45 So in this field, we have developed a variety of products. First of all, the THEA, it's a heads up display. It's the only product that we have for daytime operations. It's a see through display that provides this augmented reality data to the soldier. We have the iris c, which is a small thermal clip on that mounts onto our night vision goggles or on any night vision goggles, really, and provides the soldier with fused imagery, but as well the augmented reality capability during nighttime operations. And here, especially for this product, there's a huge potential. We got a recent contract with OKAR to supply this equipment to the Belgian and German Armed Forces, a total of around 25,000 systems including the auctions. We have as well some other customers, existing customers in NATO countries and there's a strong interest because this is the future. You have night vision equipment which is here to stay for many, many years to come, but with this equipment you provide the soldier with extra capabilities: fused vision and augmented reality capabilities.

15:59 Then we have the Orion, it's the principle of an integrated fused gobl, again, with augmented reality capabilities. And then we have the smart battery pack. We have the different variants of the smart battery pack. It's it's it's it's the the hub, basically. It's a battery pack that sits at the back of the helmet and it's like the the central computing unit that connects the goggle, whatever goggle it is, the Orion, the Irish Sea, or even the Thea during the day, to the battle management system. And the smart battery pack together with the THEA for example is already introduced in Germany with the Infantrister Zuken of the German future soldier programme. If we move over to the platform based optronics, we have a growing range of this type of equipment. Now I have to be honest with you, The the amount of revenues generated today from this type of equipment is very, very small. We are a new kid on the block, but what we what we intend to to achieve and will achieve this is to repeat the success that we've had in the man portable segment.

17:20 Platform based optronics, as I said, go on any type of platforms. We have an initial focus on armored vehicles. But as I said, this equipment can be used as well on on unmanned, for example, sea vessels, on unmanned ground vehicles, on unmanned aerial vehicle drones. So this is an an area we we we really focus on at the moment, and we have had some original successes last year which we announced, and there's more to come. And there's some announcement to to come very, very soon. So as said, we want to replicate the success that we've had in the NAND portable segment in this platform of electronics based segment and we can do this. I mean, we have the business development channels.

18:09 We are still as hungry and as aggressive as we've been in the in the in the old days where we were nobody basically. We can provide the same reliable quality, the same competitive products to our customers and today we are a brand. We have a reputation. The customers know us. They respect us for our all time deliveries, high quality products and outstanding customer support. Let's have a look at the geopolitical landscape. We see emerging multipolarity, which doesn't mean there's not any more East against West. There are different poles around the world, and and this basically leads to investments everywhere, basically, in the in the defense.

19:04 In Europe in particular, we we have seen decades of of underinvestment, and now this is being addressed. This started obviously with the invasion of Ukraine by by Russia, and we we see Germany leading Europe basically with almost unlimited defense spending, but it's not only Germany, it's Scandinavia, the Baltics, Eastern Europe. And we we also expect Southern Europe that have obviously budget issues to to to be forced, you know, to to step up and increase the spending there as well. In Europe overall, we see an ambition of Europe to play a stronger role in the global defense landscape, which benefits as well European defense companies.

19:57 We can see a similar trend as well in other regions the Middle East and the Asia Pacific area with ongoing tensions and and now with the recent news in in The Middle East, of course, leading to rapid procurement decisions and increased defense budget. We see this in in the Asian area with Japan, Taiwan, Korea, all substantially increasing their defense budgets because everybody is aware that you cannot necessarily rely on the old allies and you have to make sure that you can defend your country in terms of a of a of a conflict. Conflict. Last but not least, The US. It's not prominently facing on this slide, but The US remains the world's largest defence spender.

20:50 And while the current administration prioritize domestically designed and manufactured systems, which in essence a similar thing is happening in Europe, we as THEON, we are we are driving parallel, or how can I say, investments and and business development activities? So we're focusing on Europe, but in a separate stream, so to speak, we're focusing on The US, where we move forward with our armed equipment, where we have invested in technology companies to bring the armed ecosystem to the next level. And we are focusing as well on all the units in The US to strengthen our presence in this this country. Of course, The US today, in terms of revenues, it doesn't have a a major part of our of our of our global revenues. Why? Because in The US, typically, we ship our equipment as kits without the tubes.

21:55 For example, the US Marine Corps, which uses our night vision goggles. We ship the equipment to The US. It's assembled there with US tubes and then shipped to the US Marine Corps by LBIT Systems of America. So as a revenue stream, it is it is relatively low, but obviously it is a very large and prestigious market. This is, I think, a very important slide, especially for those who are maybe new to this this field. We like to talk about penetration rates. So what does it mean? As I said before, in order to enable a soldier for nighttime operations, the first thing you need to do is to equip them with a night vision goggle.

22:48 And here there is a trend which has started in The US many many years ago to equip every soldier with a night vision goggle. And we try to estimate, obviously these numbers are not accurate, but we pretty much know what's going on with our customers worldwide, this penetration rate. If we start from the left, The US or North America has more or a 100% penetration rate. The US, as I said before, they they realized this many, years ago. Their motto was always on the night, and they have pretty much one soldier one one goggle per soldier. But here, The US is moving into replacement cycle where they have many many tens and if not hundreds of thousands of of very old night vision equipment which needs to be to be replaced. So even in The US, there's a big potential for for for night vision goggle even though the penetration rate is a 100%.

23:44 Interestingly or more interesting though is is Europe, which is our focus at the moment. In Europe, we estimate around penetration rate of 30%, maybe 40% in in in APAC, which as I said before, is investing is expected to invest a lot of in defense equipment and in our equipment. The penetration is even lower. We're just talking about probably 10% of soldiers having night vision equipment. The Middle East and Africa, 20%, and then Latin America, also 20%. So if you look at these numbers, if you look at the numbers of soldiers in all these areas, you can you can do your math and you can see the potential is there for for for for our man portable equipment. And as I said, traditional night vision equipment is here to stay for many many years to come. Whatever you may see, new technologies, whatever you may hear, yes, there are development on new technologies and we are moving into this area as well with our armed ecosystem and future developments, but traditional night vision equipment is here to stay for ten, fifteen, twenty years for sure.

25:00 So if we have a look at defence spending at the global market, and we have a look at the the segment breakdown. If we look at the man portable segment, where we hold the leading global market position, particularly in in in night vision goggles, the the market is expected to grow at around 11% annually, whereas we we foresee a higher growth than the actual market is expected to grow. On the platform based segment, as I said, we are we are I wouldn't say nobody, but we are a new kid on the block in this segment. But if you look at the the the total volume, the total potential, it's it's much, much bigger than the man portable business, and it's growing at a similar rate. And and here, our growth in the segment, we predict this to be to be very, very high coming in with our new developed products, including as well the products of our newly acquired company Kappa in Germany.

26:12 Talking about which, newly acquired companies. Let's have a look at the acquisitions and the strategic initiatives and the M and A basically that we have carried out over the past two years. So we have executed a series of targeted investments to support our growth plan, but not only, but as well to secure our supply chain and to expand our technological capabilities. All these three elements are are very, very important in our overall strategy. So our first priority was the night vision supply chain. As I said before, in 2024, we acquired a 60% stake in HARDA Digital. So and this was a cash injection, basically, to to replace old production equipment, to increase the capacity, basically of hardware digital and to have direct access, sorry, to image intensifier tube technology, which before was something like a black box for us.

27:21 In 2025, we then broadened our footprint. We sorry. We we invested into Andres Industries, which is a small company based in Berlin, Germany. So we acquired a 10% stake with an option to reach roughly 25%. And with Andres, we we hold an existing contract for our Irish thermal clip on for the Belgian and German Armed Forces. And with this investment and this cooperation, we strengthened as well our presence in Germany, obviously. Then further in August 2025, we invested into platforms optronics with the full acquisition of CAPA, which shall accelerate our entry into airborne, but also vehicle based optronics where CAPA has a series of of cameras, for example, on tanker airplanes, the cameras come from CAPA.

28:23 And on the armored vehicle side, they have three sixty cameras that are mounted on armored vehicles that allow basically the the driver, the commander, and the crew of the vehicle basically to see what's going on around the vehicle. And we see a need for this equipment everywhere, basically, it it increases situational awareness and it protects the soldier that the soldier doesn't get out of the vehicle without knowing what is what is going out out there. The the management team of Kappa, and this is important to mention, remains fully engaged. And this is what we what we typically do. We we don't want to run the companies we invest in. We want the management to run the company and then through the synergies to grow the business together with us. So, CAPA is expected to contribute around six to 8% of our 2026 revenues and there's a very, very strong growth potential, of course.

29:24 Now moving on to Kopin and and Vario. These are two technology investments, I would describe them. That's Kopin is a company active in the field of of of displays, a very specific displays, a lot of technology there, and Vario, a Finnish company in virtual and augmented reality systems. So these elements are needed for future development. The what we call the THEON NEXT initiative, brings our existing armed equipment portfolio into the next level. And we did this technology investments basically to have access to these technologies and in order to work with these and develop over the coming years the products of the next generation.

30:15 Then in October, we invested and acquired a 9.8% stake in Exosense, further reinforcing our supply chain of image intensifier tube. Just for your understanding, are four image intensifier tubes in the world, two in The US, two in Europe. We have relationships with all of them. One of the two European companies is harder. It's we we own the 60% stake. And the other one is Exocent, which is the leading company in terms of production size and capability in terms of image intensifier tubes. The stake we acquired, we acquired this at a price of €54 which at the time was a premium to the share price when we acquired them. But today, we actually see that they're trading well over €60.

31:10 But this wasn't an investment to to to to make money. It it was an investment on a strategic decision, and it was as well, if I may say, some sort of a defensive move. At the time, there was a stake available for sale. We saw a chance to move in to secure this and basically to strengthen the relationship with our main supplier of image and Sapphire tubes and to strengthen, you know, the access to this very very critical component. At the same time, we signed or even before we signed a long term supply agreement which was at the same time extended basically with Exosense that secures us tens of thousands of tubes over the coming years so that we are able to satisfy the surging demand of this type of equipment that we see coming.

32:11 Now finally then in November, we expanded our collaboration with a company in South Africa, Shock Eos. They are a design house, really experts in terms of platform of electronics. We partnered with them since 2024 on on stabilized Gimbal development. And then in November, we acquired 30% and agreed on an option to reach the majority holding of the company. Looking ahead, now we intend to continue our M and A activity through smaller bolt on acquisition acquisitions, focusing on areas that can accelerate our efforts in fire control systems, platform based products, and of course the armed ecosystem, and the the THEONEXT initiative which brings the armed ecosystem to the to the next level, to the next generation of fully integrated digital man portable solutions.

33:17 At the same time, we plan to keep expanding our global footprint, particularly in The US, but also in the Asian Pacific regions. So as part of the strategy, we are actively evaluating potential acquisition targets in these areas and technology fields that complement our long term growth plan. Importantly to say here, any acquisitions, at least in the medium term future, are expected to be funded without the issuance of new shares. Now let's have a look at financial performance, starting with financial year 2025 highlights.

34:08 2025 was indeed an exceptional and another record year for THEON, both financially and commercially. The revenues exceeded the initial guidance of $410,000,000 to €430,000,000 reaching $4.43 €434,500,000 and represented a year on year growth of over 25%. The profitability outperformed this growth with an increased market leading adjusted EBIT of 26.2%, fully delivering on our mid-20s guidance. We also achieved a record high order intake of €1,300,000,000 of which I will provide some more details on the next slide.

34:58 As said, in 2025, we completed a sequence of strategic investments, acquisitions and partnerships in support of our THEON Next vision strategy as presented at the Capital Markets Day held in November. In January now, we completed the acquisition of the Exosense stake and the acquisition of Kappa, further cementing our position in night vision and accelerating our intro introduction into platform based electro optronics. In December, last but not least, we successfully raised €150,000,000 through a share capital increase and refinanced our borrowing at much better terms, which maintains as well financial flexibility to fuel future organic and inorganic growth.

35:49 Now looking at the visibility going ahead. As I just said, in 2025, we achieved a record high order intake of €1,300,000,000 This was supported by the largest single order ever placed for night vision goggles through the OKA organization for Germany, which placed an order for a 100,000 goggles on with with us to secure the equipment of the troops for the coming years. And here, a small parenthesis, why did Germany do this and why are other European countries or why have they moved to framework agreements securing the long term supply simply because the the demand of this equipment is expected to be much much higher than what can be delivered.

36:48 What can be delivered in terms of image intensifier tubes. So the supply demand is just in a balance, but it is expected that the demand is gonna be higher than the supply. And and more and more countries are moving into securing their equipment for the coming years, so not to be left out, not to be not to to have to stand at the end of the queue because all the equipment is gone. And that's what Germany did and that's what what many other countries do. And this is brings us in a in a very good position, in the context of all these long term relationships that we have with many European customers that, as I said, are placing these long term framework agreements with us. Plus, we have secured our supply chain. We have our own image intensifier tubes. We have this supply agreement with Exosense.

37:42 We have as well access to US tubes even though they have some limitations in terms of exportability. We, as THEON, are able, as it stands today, to support and to supply our customers. But of course, there's only so much available supply even from our end, so customers are urged and they do this basically to come and secure their supply. If we have a look at the backlog that we experienced at the end of last year, you see there it's almost €2,300,000,000 and that includes options. And when it comes to options, I think we have never missed any options. So any conduct that we have we had with options, these options have always been been exercised.

38:35 So the soft backlog, including the options, is well over the double of the level of 2024. So a quick outlook in terms of guidance. Our guidance for this year represents an expected revenue increase of around 30% compared to last year, so around $570,000,000 to €600,000,000 And we continue to expect to have market leading mid-20s EBIT margins with an increase in CapEx to €30,000,000 to support the ongoing strong growth of the company.

39:26 Dividends are expected to be in the range of 20% to 30%. So, with this, I come to the last slide, just a brief summary and an outlook. So, we have entered 2026 with a very strong momentum, starting from the very high backlog that we have, the expanding product portfolio, continued tailwinds in the global market. Revenue contribution from new digital products, so that's the armed ecosystem, that is well the platform of TRONINX including CAPA, are expected to more than double this year from last year and reach 20% to 25% of our revenues.

40:17 Our supply chain is secured and the acceleration of the production capacity increase at Haader Digital, which we announced in January 2026, is expected to further boost our capacity and our ability basically to serve our customers worldwide. We expect to see further bolt on M and As. And this, we all do this with the aim to grow and to not only to be a leader as we are today in night vision equipment, but to become the leader as well in defence optoelectronics over the medium term horizon.

41:05 So with this, I like to give back the the microphone to to Paul, and then we can address any questions that may be raised by the audience. Thank you very much. Philippe, fantastic. Thank you for such an in-depth presentation. Ladies and gentlemen, do please continue to submit your questions using the q and a tab situated on the right hand corner of your screen. Just while the team take a few moments to review those questions submitted today, I'd like to remind you the recording of the presentation along with a copy of the slides and the published q and a can be accessed via your dashboard. Philippe, as you can see, we've had a number of questions from investors today, thank you to all those who've submitted. So perhaps let's start off with the first one, and no surprise, I guess, with this comment question, really. Can you comment on the current Iran conflict?

41:52 Yes. Even though we don't comment on specific events or or political events. But, yes, obviously, when there is a conflict, there is always a need for armament and and for our type of of equipment both in the the short term, but as well in the long term. And we see this already now to take place. Okay. Just moving on to the next question we have got here is, what are your revenue ambitions and how quickly can you reach them? Know you touched on some of those financials in the outlook, but just back to you, please.

42:40 Our revenue ambition are to achieve revenues of €1,000,000,000. The original ambition was to to achieve this with organic and inorganic growth, obviously. The original ambition was to achieve this by 2030. But we believe that and we are on track to achieve this ahead of this original projection. That's great. Thank you, Philippe. A little bit of an expansion on INTERNATIONAL Can you comment on INTERNATIONAL's new contract in The US? Did you participate in the tender? Yes. An expected question, I guess.

43:27 Yes. We we we participated, but we we we knew and we expected that we will not be part of this directly. But then, you know, for Exosense, we are the second largest investor in Exosense. And obviously, we are very pleased for them and for us as as a large investor in in this company with this with this new contract. As as we have said on our end, when it comes to The US, we intend to further grow in The US independently of of of this this this contract in The US for the US army. We will continue strengthening our local presence, our strategic relationships there.

44:18 And of course, we expect to be in a position to and we are already in a position to address all other major pillars of the defense market in The US. It's not only the US Army. We have an ongoing contract with US Marine Corps. We are active in the commercial market and there are as well some other very large units in The US which we are addressing. So there's more to come in The US from THEON and for THEON. Thank you. Just a question here, sorry, on share price. Can you comment on the share price volatility?

45:08 Yes. I mean, first of all, if you look at the past few days, the whole sector sees high volatility, which is due to the war in The Middle East at the moment. If this question refers to previous volatility at the end of last year in particular, then it was related to our preannounced rights issues issue that was a that was subsequently successfully completed in December. And just to be clear here as well, there are no current plans to issue any more new shares or for any new or near term sell downs by the majority shareholders.

46:02 Thank you. Next one reads here, I'd like to ask if the platform's optronics production will start before the third manufacturing plant is completed or if it's necessary the third plant to be completed in order to begin the process? Yes. Now we do have available production capacity here to start the production of this equipment. There's no need to have the new facility in place in order to commence this. But, obviously, with this type of equipment, there's going to be a ramp up, there's going to be more business, and this will then be covered by the new facility. Super. Thank you. Question here. Data link is an important aspect of network centric warfare. How does your equipment fare in terms of data link connectivity?

46:51 How is the situation in case you pursue non NATO customers considering they don't use standard NATO data link? Yeah. To answer this question, just to explain a little bit more about what we do in in terms of connected equipment. As I said, we have the various goggles, heads up displays, so on. They are connected to our smart battery pack, is the this is the computing hub. And this is then connected typically to to a radio, for example, or to tablet. And and in the end of the day, connected to a battle management system. How this is linked, how the data is transmitted to and from the soldier, this is not part of our business. Part of our business is that our equipment and in particular the smart battery pack is compatible with any battle management systems.

47:46 And we do have already today, we cover the majority of battle management system that our system can connect to. And to connect to to new battle management system is is is just a matter of of writing the software, basically, to have the the correct plugin. So there are no restrictions, basically, for our for our armed equipment to work with any better management systems around the world. Thanks, Greg. A three part question just on The US. Some of these parts, I think you have covered off in just some of your previous answers, I'll read them all out. Are you part of the Vinyl program, which excellent I can't even say it today. EXASENSE one, will you supply kits to Elbit in the Vinyl program? And do you plan to invest CapEx into The U. S? As I said before in the previous question concerning the Exosense contract in The US, yes, it's related to the Bynote program.

48:41 No, we were not selected. But, yes, we are we are happy for Exosense. And one one comment here as well, I said it before, the the revenue stream from The US in terms of revenues is is is is fairly small. It's a small part of our overall revenues and our our guidance and our our our revenue ambitions, this 1,000,000,000, is is there's there's no buy not program included in these numbers. So it does not have an impact on our guidance. To answer the second part of the question, no, we do not supply kits to Elbit for the BioMAD program. We supply kits and we continue to supply kits on the US Marine Corps program.

49:39 And then whether we plan to invest CapEx in The US, I don't want to comment on this. We have a forecast for the CapEx, which I mentioned before. And as I said before, we're focusing on The US, both on traditional night vision equipment, the various pillars, the various customers we have there, the armed equipment, but as well platform optronics. So The US is and remains an important market for us, and we believe that we through strengthening our presence in The US, we will definitely increase our revenues coming from The US despite the fact that we were not selected on the the BINONAL program.

50:29 Super. Thank you. How important will augmented reality products become and will all products be sold be able to link to this? As I said before, augmented reality is becoming more and more important for the soldiers in order to have better awareness of what's going on in the in in in in the battlefield. But first of all, night vision equipment is here to stay. It's it's analog equipment. It's I wouldn't call it cheap equipment, but it's fairly priced equipment. It works and it provides the soldier with the ability to see during night. In parallel, we will see more and more developments of the mandated reality products.

51:15 And as I mentioned in my presentation, we're already in this in this area and we have an immediate solution for the soldier, which is our thermal clip on which mounts onto our night vision goggle and immediately enables the goggle to be augmented reality ready. And, yes, as long as the product has a digital output, it can be connected. It can have an augmented reality capability. Super. Thank you. And what are the price points of the main products? I'm I'm not sure if I understand the the the question correctly because, obviously, I cannot provide prices here. But, typically, night vision binoculars are several thousands of of euros depending on whether it's a binocular or binocular, then we're talking about armed equipment.

52:24 This equipment can be more expensive. The smarter an equipment is, the more technology there is in equipment, the more engineering works that goes into this, obviously, the the higher the the price of such an equipment. And then if we're talking about platform based optronics, there we're talking about tens of thousand of euros and can go even in the hundreds of thousands of euros if we're talking about really, really big multi sensor stabilized gimbals. Thank you. Just a question following really on from the first one. Are there any consequences from the US uranium war for your sales for 2026? I'm not sure if I can really comment on this. But as I said before, when there is a is a conflict, what we typically see, there's a demand for for armament, including our equipment.

53:15 And and and there's a conflict in The Middle East. So just do the math and put one to one together. Thank you. And just to step on from that, can you elaborate on the exact arguments for the one to one ratio? Are all soldiers obliged to carry used night vision equipment? It'd be great for us if they were obliged and that would make things easier, basically. No. They are not obliged, but the especially the uke the the Ukrainian war has shown the importance of night vision equipment. You may you may remember at the the initial days of the Russian invasion when there was this very long convoy towards Kyiv.

54:02 And what did Ukrainians do? Basically, they attacked this convoy during the night equipped with night vision equipment because the Russians didn't have such equipment. This is this is public knowledge. It's not me making up this the the the story, basically. And they they attacked and and and and and made this convoy to break down and to retreat. And and not only because of this event, but in general, it it made everybody aware that if your soldiers cannot see Yunnanite, they cannot operate during night. And, obviously, when you operate during night, you have a huge tactical advantage because it's dark. So if you can see, but the enemy cannot see or the enemy cannot see as well as you can, you have a a huge advantage. And that's why we see this drive to equip every soldier at least with a night vision gobble and then in a second wave to provide him as well with targeting capabilities during the night.

54:59 Fantastic. Thank you. Do the thermal and FCF products need the same critical image intensifier tubes? Yeah. Very, very good question. And I didn't I didn't really go into this during my presentation. No. They don't. Image intensifier tubes are used in night vision goggles. And what is an image intensifier tube? It's basically a detector that collects light, whatever light is available from the moon, from the stars, from streetlights, and amplifies them, the the light, and then projects the image onto typically a green or a a black and white screen like you see in in the in the movies. It's an analog device, but it it it works very, very well at an affordable cost, affordable power consumption, and it does not have any lag. It's an analog device. The the the image is at speed of light basically, and there's there's no lag when when when you when you look around.

55:58 Thermal and fire control systems or any digital equipment doesn't use image intensifier tubes. It's it it typically uses bolometers, which are detectors. Basically, they detect difference in temperatures. So my body has a higher temperature than the environment. So this detector detects the difference in temperature and displays the image typically in various gray shades or sometimes what in color or or or red to to to provide an image to the the to the user. The disadvantage of thermal technology is that you cannot really have an exact image of what you're looking at. So sometimes it's not easy to identify what am I looking at.

56:43 Is it a soldier? Is it a civilian? You cannot look through glass, for example, because glass has a uniform temperature, so you will soon see just just black, basically, and has some other disadvantage. But the big advantage of thermal is basically it's perfect for detection because when the soldier is hidden in the forest, for example, with camouflage, with a night vision goggle, I will not see him. But if I had a thermal clip on and a thermal equipment, then I would see the heat signature of the soldier and it would be very very strong and I immediately detect the soldier and then with the night vision capability, I can then go closer or identify it is actually a soldier or what am I actually looking at. That's why fusion of these two technologies is basically the best of both worlds.

57:31 Just a penultimate question just so we're coming up to the hour mark. Can I have some more color on your plans regarding the new FCS segment and any recent development steps, product launch, R and D partnerships in this segment? What's the anticipated revenue contribution from FCS? Yes. I mean, in the FCS, we already moved into this segment. We've been working with Aimpoint for quite some time with their fire control systems where we basically have a thermal clip on that goes with their FCS. We have as well other customized equipment that are related to FCS. We now have our first own fire control system using thermal technology. And we are actively talking to partners, to users, to continue the development of type of of equipment. As I said, it's crucial equipment because it it increases the the accuracy of of the the targeting and ensures that, yeah, ideally, the target is hit with the the first shot, which reduces the the use of ammunition and as well increases the the security and the safety of the the user.

58:51 Just final one, Philippe. Given increasing tight supply for tube, should we expect margin expansion, pricing power in NVG? Or will margin expansion be derived from new product categories? Not sure what is meant by margin expansion. I mean, we have given our guidance in terms of margin, mid-20s. Just just just very briefly, I mean, course, there are this this business has had a lower this has lower margins, for example, even when there is a tight competition for interesting contracts, then, yeah, margins may have to suffer. Or for example, in the platform segment, if we want to really get a certain business and really get our foot into the market, then to a certain extent, margins may have to be a short sacrifice on the short end just to get in. But on the other hand side, products as I before that have that are smarter, that have more advanced technology, whether it is man portable equipment or platform based equipment, can command higher margins. So in essence, basically, we stick to our midterm guidance for mid-20s EBIT margins.

1:00:17 Thank you for answering all those questions you can for investors. Thanks to all the investors for submitting your questions. I know there's a number that haven't been responded to, but the company will be able to address those. We publish responses where appropriate to do so on the investor meet company platform. Just before redirecting investors to provide you their feedback, actually particularly important to you and the team, Philippe, could I just ask you for a few closing comments, please? I mean, first of all, thanks for this opportunity. I I hope that I was able to give you interesting brief on on our company and and and what I what we do, in particular, for the newcomers that may may be listening for the first time about THEON. In short, these are definitely exciting times.

1:01:05 There are a lot of things to come. We will we cement basically our global leading position in night vision equipment and we continue to cement this. That's why we did this various investments into the image intensifier tube, we secured our supply chain, we have the capacity here, we have the long term agreement and we want and we will remain the leader in this field. We move aggressively into the next generation in the augmented reality infused enabled products through our armed ecosystem, which exists and which is continuously being improved and developed further, also in the context of the THEON NEXT initiative.

1:01:55 And last but not least, we enter the platform ofronics segment, which in absolute terms is much, much bigger, and which is a segment that we already entered last year with our initial contracts for small quantities, but very important contracts. And this happened much, much earlier than we expected. And you shall hear more about this very, very soon. So thanks again for the attention And any further questions, I guess you can always address yourselves to our investment relation team who will be able to help you further. Thanks, Paul. Back to you. Philippe, thank you so much for updating investors today. Can I please ask investors not to close this section as you'll be automatically redirected to provide your feedback in order the management team better understand your views and expectations?

1:02:50 This will only take a few moments to complete and the most greatly valued by the company. Behalf of Philip and the team at THEON INTERNATIONAL PLC, we'd like to thank you for attending today's presentation. That concludes today's session, and good morning to you all.