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I read what it says in manual but still don't understand what it is used for. What additional functionality does it offer that inputing materials directly into the geometry node doesn't?

I think I got it... it is for texturing instances when geometry is copied using the Geometry Group & Placement nodes? So that one can use the same materials on the instances, or add completely different materials. The node layout in the manual didn't really explain that - unless my set up is completely wrong?

Hi pegot,
yes correct, and you can change even only one single material of an instance or series of instanced geometry.
ciao beppe