Q1 2025 Bayerische Motoren Werke AG Earnings Call - Press Conference
Thank you.
[music].
Speaker Change: Dear colleagues, ladies and gentlemen, good morning, and welcome to the telephone conference.
Speaker Change: W Group for the first quarter to date, but we have always thought about chipset chairman of the board of management and our CFO.
Speaker Change: Matt.
Speaker Change: First of all I told me to take you through our financial recites Alibaba will then give you a general business.
Speaker Change: For the BMW group after a short break we will then have time for <unk>.
Speaker Change: Right.
Speaker Change: Please you are the first go ahead.
Speaker Change: Many thanks Marc.
Speaker Change: Ladies and gentlemen, good morning.
Speaker Change: In a highly dynamic environment BMW group has to deliver sales and profitability for the first quarter in line with expectations.
Speaker Change: Our core business has a strong foundation of highly attractive products and Israel.
Speaker Change: All right.
Speaker Change: With a balanced presence in our sales regions, we have a strong competitive position.
Speaker Change: I'm not able to deliver a consistent performance.
Speaker Change: And the first quarter the BMW group truth is once again.
Speaker Change: Let's take a look into the key figures for the first quarter.
Speaker Change: Group earnings before tax totaled over 3.1 billion euros.
Speaker Change: Based on group revenues of $33 8 billion euros. This resulted in a group EBIT margin of nine 2%.
Speaker Change: The EBIT margin in the automotive segment came in at the upper end of our 2025 annual targets corridor with six 9%.
Speaker Change: Excluding the depreciation resulting from the purchase price allocation of BBA the margin was eight 1%.
Speaker Change: Global retail sales decreased slightly by one 4% compared to last year's first quarter.
Speaker Change: Sales of all electric vehicles, meaning F <unk>.
Speaker Change: <unk> increased by 32, 4%, which represents a share of 18, 7% of total sales.
Speaker Change: That's come through more details of the <unk>.
Speaker Change: Motive segment performed across key metrics.
Speaker Change: In the first quarter. The BMW group delivered just over 586000, BMW mini Android choice to customers.
Speaker Change: A slight decrease of one 4% compared to last year's first quarter.
Speaker Change: While the BMW brand was slightly down 2% year on year.
Speaker Change: Many brands benefited from the full availability of all models and reported a growth of 12, 1%.
Speaker Change: Group sales grew across all regions, except China.
Speaker Change: As expected the lower run rate of the second half of 2020 before.
Speaker Change: Carried over into the first quarter of 2025.
Speaker Change: The sales development in the Chinese market in Q1 was also impacted by the model changeover of our important BMW excrete and operational challenges in certain areas of the dealer network.
Speaker Change: In Europe, the BMW group increased retail sales solidly by six 2%.
Speaker Change: The order intake for BMW vehicles in the region across our entire product portfolio is strong.
Speaker Change: An order bank, reaching well into the third quarter.
Speaker Change: In particular best retail sales grew by 64, 2% in Europe confirming to reach this crucial role in driving our electrification strategy.
Speaker Change: In the U S year on year retail sales grew by 4%.
Speaker Change: Our commitment to electrification remains an important cornerstone of our strategy.
Speaker Change: And the demand for our all electric regions remains strong.
Speaker Change: And the first three months the BMW group delivered almost 110000, all electric vehicles to customers worldwide.
Speaker Change: Representing a significant growth of almost of that.
Speaker Change: The shelf, our all electric vehicles amounts to 18, 7% of total sales, our electrified vehicles, meaning staffs and plug in hybrid accounted for almost 27% of total sales.
Speaker Change: With our comprehensive and compelling lineup of electrified vehicles, we remain confident that we will meet our cotwo emission targets in the EU of 2025.
Speaker Change: Automotive segment revenues amounted to $29 2 billion euros and moderately lower than the same quarter of 2024, mainly due to lower vehicle sales to dealers.
Speaker Change: Segment EBIT for the first three months was over 2 billion euros with an EBIT margin of six 9%.
Speaker Change: Let's now have a detailed look at the year on year changes in the operational results on the next slide.
Speaker Change: Auto EBIT declined by around 700 million euros compared to the first quarter of 2024.
Speaker Change: Changes in currency and raw material positions accounted for a positive impact of around 100 million euros.
Speaker Change: The net balance of volume model mix and pricing effects was a headwind of 900 million euros compared to the first quarter of 2024.
Speaker Change: The combined effect from volume and mix was neutral.
Speaker Change: The pricing headwind compared to Q1 2024 reflects the global price environment, and especially the challenges of the highly competitive Chinese market.
Speaker Change: In China, the price levels of the second half of 2020 for continued into the first quarter as expected and explained at the annual conference in March 25.
Speaker Change: Accordingly, Q1 revenues per vehicle in the automotive segment below the level of Q1 2024.
Speaker Change: Full year, they are expected to be in line with last year's level.
Speaker Change: Ladies and gentlemen, I emphasized at our annual conference set for the year 2025, not only R&D expenditure in Capex, but also operational costs will decrease compared to 2024.
Speaker Change: Our Q1 results provide further evidence for this cost decrease in nominal terms covering the effects of inflation.
Speaker Change: So research and development expenses were around 200 billion lower than in Q1 2024.
Speaker Change: Based on group R&D expenditure the R&D ratio. According to the chairman from those reports came in at five 9%.
Speaker Change: Sales and administrative expenses also decreased year on year by about 200 million euros, mainly due to lower it costs.
Speaker Change: And other cost changes that happened of 300 million euros essentially results from two topics.
Speaker Change: The income from the resale of end of lease vehicles was lower than in the first quarter of 2020 before yet.
Speaker Change: Yet we remain positive on average across the portfolio.
Speaker Change: And the anti subsidy tariffs imposed by the EU Commission on electrified vehicles from China impacted EBIT in the low three digit million euros range in Q1.
Speaker Change: The other tariff increases only started to come into effect from early March and therefore had minimal impact on the Q1 results.
Speaker Change: Free cash flow in the automotive segment totaled about 400 million euros in the first quarter of 2025.
Speaker Change: Segment EBITDA amounted to $1 9 billion euros, which is 800 million euros more spend in the first three months of 2024.
Speaker Change: Good morning, and net change in brokering catheter contributed around 100 million euros to free cash flow.
Speaker Change: Inventories rose during the first quarter as production exceeded retail sales and wholesale volumes. My this is typically the first quarter seasonality. This year Q1 stock increase is much less pronounced than in previous years.
Speaker Change: The impact of increased inventories as well as of higher trade receivables was compensated by the development of straight payables, which increased also due to higher production levels.
Speaker Change: The net effect from capital expenditure and depreciation reduced free cash flow by 600 million euros.
Speaker Change: This includes a positive component with inverse lower than depreciation in the first quarter.
Speaker Change: On the other hand, it also incorporates a higher cash outflow of 964 million euros in Q1, which is related to the Capex peak in the last quarter of 2024.
Speaker Change: Capital expenditure for January to March amounted to around $1 2 billion a year on year reduction of around 100 million euros. The capex ratio for the first quarter was three 6%.
Speaker Change: For the full year 2025, Capex will decrease compared to 2020 for certain expected capex ratio below 6%.
Speaker Change: The development of provisions reduced free cash flow by 200 million euros.
Speaker Change: And the change in the position other which includes regular tax payments led to a reduction in free cash flow of around 800 million euros.
Speaker Change: For the full year. The BMW group is targeting a free cash flow above 5 billion euros and the automotive segments.
Speaker Change: At the end of the first quarter the automotive net financial assets came in at $45 5 billion euros, which is around the same level as at the end of 2024.
Speaker Change: This provides a solid foundation to navigate the current challenges in global markets and it enables us to distribute our automotive free cash flow via dividends and share buybacks.
Speaker Change: Ladies and gentlemen, the BMW group remains committed to its shareholder return strategy, which includes both dividend payments and share buybacks.
Speaker Change: On April 3rd we successfully concluded the fourth and final tranche of our second share buyback program.
Speaker Change: With completion of this program, we have repurchased shares valued at 4 billion euros since the start of our share buyback authorization in 2022.
Speaker Change: This corresponds to a reduction in share capital of $7 two 7%.
At the upcoming AGM the board of management of BMW achieved proposed agenda item seeking a new five year authorization to acquire treasury shares amounting to up to 10% of check averages.
Speaker Change: Moving on to the financial services segment.
Speaker Change: A number of new contracts concluded this retail customers decreased slightly by <unk>, 6% year on year to reach almost 403000 contracts.
Speaker Change: For new vehicles, new business units were on par with last year's quarter.
Speaker Change: Consequently, the penetration rates for lease and loan offerings increased by one two percentage points to 43%.
Speaker Change: For used vehicles, new business units decreased moderately due to the lower number of end of lease vehicles that better returns compared to the first quarter of 2024.
Speaker Change: New business volume grew by two 4% to 16 billion euros driven.
Speaker Change: Driven by a higher average financing amongst our contracts.
Speaker Change: Segment earnings for the first quarter amounted to 650 million a.
Speaker Change: Our year on year decrease of 80 million euros. This results mainly from two factors.
Speaker Change: Lower income from the resale of end of lease vehicles due to reduced average guidance per unit and.
Speaker Change: The lower number of return vehicles compared to 2024.
Speaker Change: A credit loss ratio across the entire loan portfolio remained at a low rate of two 3%.
Speaker Change: In the motorcycles segment first quarter deliveries decreased slightly by three 9% year on year.
Speaker Change: EBIT for the first three months totaled 76 million euros EBIT.
Speaker Change: EBIT margin of nine 4%.
Speaker Change: Ladies and gentlemen, let's move to our outlook for 2025.
Speaker Change: Our guidance given at the annual conference on March 14th included all the tariff increases enforced as of March 12 already.
Speaker Change: Since then political and macroeconomic volatility has increased even further.
Speaker Change: Due to ongoing developments and negotiations they expected effects from tariffs on 2025 results and only be estimated based on certain assumptions.
Speaker Change: So we have taken the latest impact as of May five.
Speaker Change: Meaning tariffs on U S imports of CPU and non U S MCA components at an additional 25%.
Speaker Change: But on the other hand, the executive order from last week regarding non stocking and the eligibility of three 7%.
Speaker Change: Of MSRP for the Spartanburg production volume has some positive impact given our strong local footprint in the U S.
Speaker Change: And.
Speaker Change: Extremely high service for imports from.
Nick: China is Nick lexical CFO, we also have a strong local footprint in China in particular, the localization of the <unk> five in 2022 helps mitigating.
Nick: And still the tariff increases that started to come into effect from early March we'll have a notable impact on the Q2 results.
Nick: We assume that some of the tariff increases as of May Phipps of up to May five will.
Nick: Be temporary and that there will be reductions from July 2025.
Nick: Our guidance also includes measures to mitigate the impact of higher tariffs.
Nick: Based on all of these assumptions.
Nick: And footprints our guidance parameters for the full year remain unchanged.
Nick: So group earnings before tax are expected to be at previous year's level.
Nick: In the automotive segment, we are forecasting a slight increase in deliveries.
Nick: EBIT margin is expected in a corridor between 5% and 7%.
Nick: The EBIT margin in the motorcycle segment should come in at between five five and seven 5%.
Nick: And then the financial services segment, we are targeting a return on equity in the range of 13% to 16% for the full year.
Nick: Ladies and gentlemen.
Nick: BMW group delivered as expected in the first quarter with an EBIT margin at the upper end of our full year targets corridor.
Nick: The geopolitical and macroeconomic uncertainty has reached a level we have rarely seen before.
Nick: But we are closely monitoring the impact of the current macroeconomic conditions and consumer sentiment.
Nick: It is therefore, all the more important that we continue to follow our long term strategic plan.
<unk> includes using the flexibility of our global network to mitigate the impact of the current developments.
Nick: And it includes disciplined spending and R&D capex or operating costs.
Nick: As we walk the talk nominal cost reductions are already visible in our Q1 figures.
Nick: Our clear long term strategy, our strong brands and products.
Nick: The high level of cost discipline throughout our entire organization remained the basis for our long term financial success. Many thanks.
Oliver: Thank you <unk> now over to our CEO Oliver <unk>. Please.
Oliver: Ladies and gentlemen.
Oliver: As a global player the BW group operates within the current intention of world politics.
Oliver: Like many sectors of the global economy, we are.
Oliver: Our adjusted to a new reality.
Oliver: One in which abrupt changes in external conditions, often have far reaching consequences not just for our industry.
Oliver: In these circumstances it is critical not to get caught up in the public frenzy or rush into hasty actions.
Oliver: That is while we continue to focus on our long term strategic course, with pragmatism and flexibility.
Oliver: And this approach is providing its value. Despite the volatile conditions. The BMW group has started 2025 in line with our high expectations.
Oliver: There are three main reasons for this first our fresh and attractive product lineup across all drive technologies.
Oliver: Which helped us achieve a robust performance, especially in Europe, and the United States of America.
Oliver: Secondly continued strong sales codes for our all electric vehicles.
Oliver: And third a highest standard of cost discipline across the company.
Oliver: All of this meant that despite various implanting pictures our profitability for the first quarter was in the upper half of our guidance.
Oliver: Let's now take a closer look at the details.
Oliver: And all major sales to regions outside of China, We increased our sales compared to the same periods of last year.
Oliver: Excluding China sales grew by almost 6%.
Oliver: This confirms the effectiveness not only with our product strategy, but also of our technology opened approach.
Oliver: Our vehicles are in demand across all types of Drivetrains.
Oliver: We saw particularly good growth in Europe, and the United States with States and Europe up solidly by more than 6%.
Oliver: And an increase of 4% in the United States.
Oliver: We are growing steadily across the entire Americas region with growth of over 5%.
Oliver: We are also growing overall in our markets outside of Europe.
Oliver: America, and China by 15% Thanks.
Oliver: Thanks to all of the strong performance in other markets, we were able to nearly offset the persistent challenges in the Chinese market.
Oliver: We have the right products on the market at the right time.
Oliver: A wide range of all electric big it's across all brands allows us to take full advantage of the growing demand for pure electric vehicles.
Oliver: The more than 32% increase in best sales underlines the strong appeal for power electric vehicles.
Oliver: <unk> high demand in Europe fueled this growth index here sales of fully electric vehicles climbed by more than 64% year on year.
Oliver: E mobility made by BMW is also gaining popularity in the United States with sales up by more than 23%.
Oliver: Now nearly one in concrete it's sold by the BMW group is now fully electric.
Oliver: The total share of electric vehicles that is pure electric cars plus plug in hybrids now exceeds 25%.
Oliver: Many in particular is benefiting from the strong demand for all electric vehicles today.
Oliver: To date and electric Heartbeats, and one out of every three vision can split by the brands.
Oliver: With all models of the new mini family now fully available the brand recorded sales growth of 4%.
Oliver: And in China locally built electric models play the key role in the brands growth of over 18%.
Oliver: The share of fully electric Pecos and total sales is especially important for meeting European future targets in.
Oliver: In 2020 for the BMW group once again significantly outperformed its European <unk> fleet target.
Oliver: Based on internal calculations, our numbers came in at under 100 grams per kilometer in the W. LTP salad kit for the first time.
Oliver: We are confident that.
Oliver: And we will meet the original legal requirements this year as well.
Oliver: In addition to the growth in all electric vehicles. We also benefited from continued high demand for our 40 BMW models.
Oliver: Sales up 5% in the first quarter.
Oliver: High performance models, such as the new BMW, <unk> and the BMW and three EBIT the main growth drivers.
Oliver: Ladies and gentlemen.
Oliver: The first quarter of 2025 highlighted our company's ability to.
Oliver: To seize opportunities in a challenging environment.
Oliver: And to successfully defend our position in the marketplace.
Oliver: Looking ahead, new orders across all drive technologies give us every reason for confidence, especially in Germany, where we are seeing significant growth.
Oliver: Nevertheless, 2025 remains a year of high volatility.
Oliver: We are closely monitoring developments in preparing for different scenarios.
Oliver: This will enable us to respond flexibly and swiftly to changing circumstances.
Oliver: We remain firmly committed to deliver robust results and to meet our ambitious and neurotoxins.
Oliver: Free trade and International Corporation are important drivers of growth and progress.
Oliver: We have always guided our actions.
Oliver: And trade conflicts on the other hand, nobody wins all sides should therefore avoid a spiral of isolation and trade areas and instead promote growth brokerage and innovation worldwide.
Oliver: We're advocating for this had various political levels in our markets.
Oliver: And thanks to our international footprint and strong long term commitment in various countries, we enjoy a high level of credibility.
Oliver: That is why people listen to us attentively and our arguments are well received.
Oliver: Ladies and gentlemen, it is especially important in challenging times that we continually assess the situation in our markets and regions.
Oliver: That is why I have spent significant time in the past few weeks.
Oliver: Information about the situation on the ground and our most important markets.
Oliver: As two weeks ago I was at ultra Shanghai This.
Oliver: This trade show provides a valuable indicator for current trends, especially for the Chinese markets.
Oliver: One of the highlights of the show was the world premiere of our BMW vision processing experience or <unk> for short.
Oliver: This is the most powerful development prototype BMW has ever been.
Oliver: The key data speaks for itself.
Oliver: 18000 meter of torque one two tons of down force level lateral forces of up to three <unk>.
Oliver: These are the kind of numbers you usually only see in top of the range racing cars the.
Oliver: <unk> tends to be designed to push the limits of driving physics. However, many of its technology will be used in our noise cancelling.
Oliver: In particular, the BD ex showcases the performance capabilities of our hot of joining one of our four high performance computers that can control key functionalities, such as driving dynamics automated driving and infotainment and our noise.
Oliver: The heart of Joy clusters, all drivetrain and driving dynamics function in a single standardized electronic control unit and.
Oliver: In combination with our dynamic performance controlling system, which was developed entirely in house, we are redefining the BMW brands most fundamental core characteristics.
Oliver: We are creating nothing else then the next level of share driving pleasure.
Oliver: With demonstrated exactly what this means with an incredible performance in Shanghai and for this purpose, we built our own test prep with a massive Brad.
Oliver: The public and trade prints were more than impressed with the performance of possibilities unleashed when we combine our decades of experience in driving dynamics with cutting edge control technology.
Oliver: This is something only we at BMW can do.
Oliver: Our customers will benefit directly from this.
Oliver: A system that can manage forces like these can also handle everyday operations with these.
Oliver: Not just in terms of agility and product stability, but also efficiency and comfort.
Oliver: Towards the end of the year series production of the noisy parcel will begin at our new plant in Hungary.
Oliver: Starting with the brand new BMW, <unk>, III, which will celebrate its world premiere at the IAA mobility in Munich in September.
Oliver: After that the rollout will continue in rapid succession in.
Oliver: In 2026 already production of 40 set them at the heart of the BMW brand will get underway at our main plant here in Munich.
Oliver: We are deliberately launched an OE cluster in high volume segments, so that our innovations can immediately.
Oliver: A growth impact.
Oliver: Between now and 2020.
Oliver: We will release more than 40, new or updated BMW models onto the market from best to plug in hybrids to vehicles with combustion engines.
Oliver: And all of these will benefit from the technologies, we elaborate we develop of the noise.
Oliver: And of course from the new design language as well.
Oliver: No other manufacturer has abruptly as comprehensive and groundbreaking as ours ready for production.
Oliver: Ladies and gentlemen, with its broad product portfolio across all brands, It's technology open approach and highly flexible production network.
Oliver: BMW, Peru is in an excellent position to exploit growth opportunities as they arise.
Oliver: And so our global footprint, we're also able to respond quickly to.
Oliver: Two changes in individual regions as well as challenges around the world.
Oliver: We will continue to build on these typical bmw's strength in the future. Thank you.
Oliver: Yes. Thank you very much Aloha, ladies and gentlemen, we'll now have a short break before we move on to the Q&A session. So youre in five minutes. Thank you very much.
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Speaker Change: Dear colleagues will come back to our second product FERC quarterly conference, we're going to continue in Germany. We're looking forward to your questions first of all there are some technical instructions before biggie bag.
Oliver: Get started with the first question.
Speaker Change: Ladies and gentlemen.
Oliver: We're going to start with the Q&A session. If you want to.
Speaker Change: You ask a question.
Oliver: Please.
Oliver: If you have dialed in.
Oliver: Please use <unk> plus nine.
Oliver: And then European called upon to ask a question as soon as you hear unique you can ask your question to withdraw your question.
Oliver: Also use the function and the zoom app.
Oliver: And when you're using a phone use asterix and nine first question. Please.
Our first question.
Christina Amun: Despite Christina Amun by Thomson Reuters.
Christina Amun: Switching your microphone.
Christina Amun: Good morning.
Christina Amun: I was able to switch on my Mic.
Christina Amun: Okay.
Speaker Change: Gentlemen, as it said nextgen metal I have a number of questions. Mr metal guitar, Tibet mitigating initiatives, which were introduced by BMW in order to offset the carriers.
Christina Amun: FX.
Speaker Change: And then you mentioned that in the second quarter that tariffs will have a more pronounced effect in the books can you give us some more information about that in terms of figures and Mr. Xie Xie and were quite hopeful before that your talks on several political levels we'll.
Christina Amun: Provided progress.
Speaker Change: In terms of free trade, maybe you can tell us more about that why yourself domestic here and what to expect here. What are you doing well you are talking to.
And also the forecast SF June that tariffs might go down again, why so optimistic about that and then the last question is what does the situation look like in China business is not going too well.
Speaker Change: Our competitors are doing badly and BMW is also feeling it what is job <unk> for China.
Speaker Change: Thank you Ms Aman.
Speaker Change: We're dealing with China, and the mitigating measures that southwest by Mr metal and at this time, Mr. ZIP Sir good morning, Ms. Anna.
Speaker Change: As I said earlier, we were the first ones in March.
Speaker Change: Which.
Speaker Change: Okay.
Speaker Change: Set aside 1% of EBIT for all the tariffs as of March 12 until March 5th.
Speaker Change: Of course.
Speaker Change: The tariffs for Cpus in the USA.
Speaker Change: It has been at 25% on top.
Speaker Change: As I said last week we.
Speaker Change: At the last executive water.
Speaker Change: That would be no additional on top of our additive taxes number stacking.
That is not going to happen that is the first impact in the second impact is.
Speaker Change: There is also a reduction of $3 75% of MSA.
Speaker Change: Yes.
Speaker Change: For the class for that.
Speaker Change: Local productions in Spartanburg.
Speaker Change: And.
Speaker Change: That has a major effect.
Speaker Change: And mitigates the U S import tariffs as of March 12 on top.
Speaker Change: And I just wanted to point out what our footprint looks like it is different compared to our competitors and let me stress that once again, we are set up differently. We're producing we have been producing in the U S. For example, the X three mdx for which others are not doing and also the X five and <unk> seven that.
Speaker Change: That is different.
Speaker Change: And then I also added that D impact.
Speaker Change: And that's happened since March 12, 125, and 45% between America and China.
Speaker Change: They have hardly any effect on us either because we also have a very strong footprint in China.
Speaker Change: And that might also look different for our competitors, but we have a negligible.
Speaker Change: Park, which we're shipping from the U S to China, and therefore, it doesn't have a major effect on us and also something you shouldn't overlook as compared to our.
Speaker Change: Competitors, we have China venture BBA out with 75% share. So we are participated participating from the local margin.
Speaker Change: So they are different effects after taking into account and then of course, we have also other mitigation topics for example parts and components.
Speaker Change: <unk> has been shipped earlier into the country, but also other Oems fit that and then of course, we are set up very well and our market.
Speaker Change: Our inventory is at 30 days.
Speaker Change: Some of our competitors are at 45 days or is it more that also has an effect and then we're also leveraging everything we can do so there is a whole bunch of topics.
Speaker Change: Which helps us REIT structure, our production, except for our global footprint and we're making use of that and that is something I need to say firstly and then also we are following the news in the media and we can see that things are happening and negotiations are taking place.
Speaker Change: And through all the networks, which are at our disposal and we believe that we believe that will be some changes as of July we're not saying that it will go down to zero that would be our hope.
Speaker Change: But we do expect.
Speaker Change: The impact will be reduced.
Speaker Change: <unk>.
Speaker Change: And bad effect here.
Speaker Change: Second quarter question I cannot give you any factors figures exactly only for the yearly figures and we're looking at 5% to 7%, including all the tariffs, including mitigation measures and that means.
Speaker Change: That's a first step everything which we have imported in March and in April It will have an effect and the terrorists.
Speaker Change: Which will be lowered as of July as we.
Speaker Change: Expect that will have an effect on Q3 set a major effect was in Q2 and then after that it won't go down again and about China briefly.
Speaker Change: In March we already mentioned.
Speaker Change: <unk>.
Speaker Change: We will be on the volume and price level of the second half of 2024 that will be district for 'twenty five as well and therefore cast we wrote that it means that the first quarter will have an impact also the second quarter will have an impact.
Speaker Change: <unk> also got weaker last year, but it has less of an impact because it will be the level.
Speaker Change: Second half of last year as far as volume and price goes and then it stabilizes and the first half year. It will be the biggest impact ex China, and then E X three.
Speaker Change: Which has been available in other parts of the world and in China. It was only launched in February.
Speaker Change: The ramp up curve will improve as of Q2 and therefore, we are still.
Speaker Change: Here too our forecast. Thank you Walter Mr. Zipster. Please on the Simon let me mention two things.
Speaker Change: And these two things determine our discussion, which we have on several levers several levels in Washington as well as in.
Speaker Change: In South Carolina and Indonesia.
Speaker Change: First of all we are trying.
Speaker Change: To tell all parties concerned.
Speaker Change: The World is highly interlinked if you look at.
Speaker Change: Okay.
Speaker Change: Most of it going from a research panel product he cannot turn it back.
Speaker Change: From the $19 $70 $80.
Speaker Change: So in the end that will only be losers, if you want to.
Speaker Change: Okay locked yourself off from the outside.
Speaker Change: That is the first thing we're communicating.
What we're trying to do and the second is specific to the United States.
Speaker Change: There are three elements.
Speaker Change: By the tariffs so in the short term what.
Speaker Change: The effects at that terrorists.
Speaker Change: Between the U S and Canada and Mexico for example.
We believe that the laughter.
Speaker Change: We'll be rested unit once again.
Speaker Change: Is there.
Speaker Change: So tightly connected and it will take a while until a new negotiation.
Speaker Change: System is put into place.
Speaker Change: That is what we assume because the disadvantages to have far too big for everybody.
Speaker Change: And secondly, and as such.
Speaker Change: Nothing specific to BMW.
Speaker Change: We have.
Speaker Change: Hi.
Speaker Change: You added in the asset we're exporting a lot and Spartanburg, which is our largest plant. We have produced more than 7 million Batesville center past years and.
Speaker Change: 2020, forego produced 400000 vehicles and that means <unk>.
Speaker Change: Last year we.
Speaker Change: So 225.
Speaker Change: Vehicles.
Speaker Change: More than 50% and export it and that means screen, but the largest automotive X quarter. According to <unk> in the U S and since 2014, we have export had $2 7 million vehicles that means two starts as a whole production was an export value of more than 100 billion.
Speaker Change: Yes.
Speaker Change: And we have made huge investments for that and what is happening right now and that is quite relevant for the current discussion.
Speaker Change: For the production of fully electric gave pulse in the U S.
Speaker Change: We're investing currently one 7 billion U S dollars 1 billion for the best production has to Spartanburg.
Speaker Change: <unk>.
Speaker Change: That's something they already started back in 2022, when we announced it back then.
Our activities in South Carolina, we have 43000 jobs and $3 billion in wages.
Speaker Change: And BMW.
Speaker Change: For a total economic impact of <unk> 6 billion Euro and South Carolina.
Speaker Change: And since we're the largest exporter we believe.
Speaker Change: <unk>.
Speaker Change: In some way shape or form that will have an effect on our negotiation Howard will have an effect we cannot tell you exactly but we can we can see that it will be not ignore our large footprint there.
Speaker Change: Important things in the current discussion.
Speaker Change: And.
Speaker Change: Thank you.
Speaker Change: Thank you <unk> next question please.
Speaker Change: The next question.
Speaker Change: Mark.
Speaker Change: The firm handles plant.
Speaker Change: Good morning, gentlemen.
Speaker Change: I would.
Speaker Change: Like to.
Speaker Change: Add to that since you are having such constructive dialogues in the United States.
Speaker Change: So tariffs at 10%.
Speaker Change: From the U S into the EU, but you'll also be able to discuss that can you also solve that.
Speaker Change: In your negotiations with the EU as well because you would also profit from that.
Speaker Change: And that could also.
Speaker Change: <unk> your negotiating position in the U S. Maybe he can suggest a solution here as well and the second question refers to China as well.
Speaker Change: Think a decrease.
Speaker Change: 17% is quite substantial.
Speaker Change: Apparently.
Speaker Change: It did not take part in the price war, because it's not worth it for year and you were in Shanghai and you've seen how the market has changed and you tell us something about.
Speaker Change: How you see the market and what your strategy is.
Speaker Change: So that's you.
Speaker Change: Do not lose more brown to Chinese competitors. Thank you.
Speaker Change: Thank you Mr <unk>.
Speaker Change: Both answers will be provided by Mr. <unk> good morning, Mr. HUS it while first of all.
Speaker Change: About the tariffs once again.
Speaker Change: If we take a look at the world, while currently everybody's going against everybody with tariffs. So we want to abolish tariffs abolish tariffs on the basis of.
Speaker Change: Co operations and negotiated agreements.
Speaker Change: Of course, you need to see eye to eye.
Speaker Change: Hi.
Establish justice and trade relations and therefore, our.
Speaker Change: We want to reduce it to zero for the U S as well as for the EU. When we look at the 10% from the U S to Europe.
Speaker Change: That has been in place for many many years has never threatened our business model in the other direction was two 5% and two 5% that's almost I am India admin costs are almost higher than just tariffs. So zero zero is our core demand.
Speaker Change: But we should also not overlook.
Speaker Change: And it's also good that you mentioned that between China and Europe.
Speaker Change: There is also an import tariff induced by the EU by 30% so the higher tariffs costs by the U S by the EU as far as Chinese vehicles Chinese electric vehicles are concerned.
Speaker Change: That.
Speaker Change: It leads to a massive distortion after market and it also.
Speaker Change: <unk> been in the lower market segments that electric vehicles will be provided for the customers. That's also part of our overall.
Speaker Change: Arguments, we have and then back to China, China is quite interesting in the figure you mentioned is of course not positive.
Speaker Change: Well first of all.
Speaker Change: We are.
Speaker Change: We are biased.
Speaker Change: It's still the largest market for us and we're still looking good compared to our competitors.
Speaker Change: It's happening and what we should be doing as we also.
Speaker Change: Restructuring our dealer.
Speaker Change: Ship structure, so in a time of exponential growth.
Speaker Change: Of course, there were sales structures, which were no longer efficient.
Speaker Change: And I am actually.
Speaker Change: Excellent in favor.
Speaker Change: Restructuring back quickly that's part of the 70% as well, but that will be over.
Speaker Change: Shortly so we expect.
Speaker Change: For the second half of the year, we expect a significant stabilization you will no longer see these decreases and you will also see that in the second quarter already that these figures will be reduced.
Speaker Change: So we're.
Speaker Change: Dealing with that boldly and set the price war doesn't makes sense and then Shanghai Motor show showed us that we are quite competitive.
Speaker Change: So.
Speaker Change: This decrease has nothing to do with a lack of competitiveness. There are some structural topics, which we're working on and then BMW just like the previous years.
Speaker Change: Around 700000 vehicles, that's what we will see that is my answer to that.
Speaker Change: Thank you Mr. ZIP said and the next question. Please.
Speaker Change: The next question is.
Vic: Danielle This is Vic.
Speaker Change: Pat Hey switch on your microphone.
Speaker Change: Good morning, Thank you.
Speaker Change: I've got two questions.
Speaker Change: First of all.
Speaker Change: Eni mid states.
Speaker Change: Mr. <unk> is it correct that you should gather.
Speaker Change: Two other gentlemen, you talked to the Donald Trump directly and if so then of course, you are not going to be able to tell us some details by <unk>.
Speaker Change: Question.
Speaker Change: And.
Speaker Change: What did you offer the U S government.
Speaker Change: In order to show willingness.
Speaker Change: That you are making a step towards the government there and then I have a second question about Europe yesterday.
Speaker Change: There was an interview published by the hat for now and still anticipate complained that in Europe.
Speaker Change: Theres an over regulation for vehicles.
Speaker Change: Which.
Speaker Change: Which can be traced back to the premium manufacturers of Germany, and they want less strict regulations for small vehicles.
Speaker Change: What you.
Speaker Change: With that and if Darren Overregulation and you're responsible for it.
Speaker Change: Thank you Mr. Rick well, Mr. <unk> will be answering both questions.
Speaker Change: Well good morning, Mr. Sprague once.
Speaker Change: Once again about the United States Su.
And now we have been in the U S. For many years, we have deep roots, there and that is true for our political relations as well and we have had a closer dialogue with.
Speaker Change: Different stakeholders on a state level not only soft.
Speaker Change: South Carolina, but also California, but also on a national level and that means also political representatives on all different levels of course and.
Speaker Change: Apart from that I cannot.
Speaker Change: And if we give more information and comment on speculation and the second question about the EU regulation or over regulation of course read the interview as well of course, there's some truth to it of course, we are over regulated in Europe, you know my arguments Europe is.
Speaker Change: Focusing on exit regulations instead.
Speaker Change: Yes.
Speaker Change: Thinking about how to get in.
Speaker Change: With their regulations and everything is being over regulated and what both of these gentlemen have set the sum of all the regulations.
Speaker Change: Pat.
Speaker Change:
Speaker Change: <unk>.
Speaker Change: The industry in Europe, and I say that quite clearly.
Speaker Change: And openly.
Speaker Change: Yeah.
Speaker Change: I can only underline that referring to that interview.
Speaker Change: Does not mean that we can get rid of everything.
We should do it in such a way that it becomes beneficial to the citizens reduces cotwo reduces accidents, but how it is being done.
Speaker Change: Dave.
Speaker Change: It's always a little too much of everything.
Speaker Change: Of.
Speaker Change: Of course, there should be.
Speaker Change: Whether there should be different regulations for different vehicle segments that is.
Speaker Change: A difficult topic biggest general.
In the same acting in the same traffic environment and you don't want to have different safety standards for a different day.
Speaker Change: <unk> segments of course, there could be different segments. Maybe you can have city cars, which are not allowed on freeways status something that could be discussed but.
Speaker Change: I would not hit by the automotive industry in two parts the small cars on the one hand.
Speaker Change: What's the other safety requirements.
Speaker Change: Reducing overregulation is correct different segmentation that is something you need to look at very carefully.
Speaker Change: Unless if you don't want to create an unfair competition. Thank you Mr. Rick next question. Please.
Speaker Change: Then next question is by.
Echo Garner: Great Echo Garner from Bloomberg News, please switch on your microphone.
Echo Garner: Hello, I hope you can hear me.
Speaker Change: I have two very short questions on the one hand I wanted to know from Mr. Zipcode Mr. Marco.
Speaker Change: You have mentioned in your outlook.
Speaker Change: For some markets are several markets you expect and.
Speaker Change: Increasing demand for quite a lot of markets.
Speaker Change: <unk>.
Speaker Change: Lower inflation.
Speaker Change: And which markets do you expect Inc.
Speaker Change: Increasing demand obviously, it does not China, but maybe you can give us more information where do you expect any increase in demand for this year.
Speaker Change: And the second question is.
Speaker Change: Towards the tariffs.
Speaker Change: Maybe you can tell us more in the negotiations with the U S. Government, maybe you can tell us more about the communication there and you said that you believe.
Speaker Change: That you have a very strong argument because of your big footprint.
Speaker Change: <unk> and <unk>.
Speaker Change: What does the other how does the other site react to that when you're using that argument.
Speaker Change: Thank you Mr <unk>, Mr metal will start.
Speaker Change: Good morning, Mr. <unk>.
Speaker Change: Our forecast.
Speaker Change: Is saying that we're growing in almost all of the markets.
Speaker Change: The exception of China.
Speaker Change: Never forecasted that for China in the U S. We have an effect.
Speaker Change: March and April were doing well more than 4%.
Speaker Change: Growth as of March also in Europe, we have been growing as of March by over 6% and we believe that this growth will continue and then China as I said earlier in March we overdo that.
Speaker Change: <unk>.
Speaker Change: We will see a similar level compared to the second half of.
Speaker Change: 2024.
Speaker Change: Especially at Q4, it was weak in China, we don't want to repeat that.
Speaker Change: Q3, it looks for this compared to the Q3 the situation look.
Speaker Change: Similar.
Mr. Xu: Mr. Xu.
Speaker Change: Well, we're happy that we have a new government and we congratulate the chancellor.
Speaker Change: And he has been elected hopefully theyre going to able bit decisive that they start that work soon in order to deal with the challenges are a core arguments are main arguments.
Speaker Change: We want to see a greater focus on the automotive industry.
Speaker Change: We have.
Speaker Change: Said, we want to be open in terms of technology, we want to drive innovation forward, but also we want to reduce Cotwo and then also we want to safeguard our competitiveness in that total industry and it is very important in Germany. There are a lot of global company.
Speaker Change: Which are not only have to be successful in Europe or in Europe, but worldwide.
Speaker Change: They have a leading role worldwide.
Speaker Change: Also influenced the U S and North America as a whole, but also the Chinese.
Speaker Change: Market as well as other Asian markets and it is very important that these worldwide links which characterized Germany and Europe.
Speaker Change: That this needs to be focused on that we.
Speaker Change: We have this international network.
Speaker Change: Next question.
Speaker Change: Hi, Steven.
William: William from Wall Street Journal, please switch on your microphone.
Speaker Change: Hi, It's Steven will marks from the Wall Street Journal.
William: Okay.
Speaker Change: All right back to the tariff questions.
Speaker Change: It sounds like these 375% tariff rebate for pause that's been one of the drivers of your.
Speaker Change: Maintained guidance.
Speaker Change: As you all know obviously this this rebate is temporary it is supposed to fall next year and then disappear the year after.
Barry: Barry how things will actually turn out but.
Speaker Change: And you're also saying that.
Speaker Change: Do you believe the <unk>.
Barry: <unk> will be restored.
Barry: And then not chicken provides.
Barry: Thats.
Paul: Paul Good morning be tariff from Mexico, and kind of is it perhaps but it will be.
Paul: In future from elsewhere is there more is there a logic to localizing more of fuel supply chain bottlenecks, such as powertrains to reduce your tariff exposure to longer term is that something that you've been exploring is there anything you can say about that and second question briefly.
Paul: Do you see any signs of.
Paul: Demand.
Paul: The response in the U S.
Paul: As a result of the imposition of tariffs any nervousness among consumers for example.
Paul: Thank you.
Paul: Thank you for your question.
Paul: What is happening currently is.
Paul: Investing in that drive trains in the U S for the fully electric vehicles, we're investing currently $1 2 billion.
Paul: 1 billion for the best production in Spartanburg, and 700 million for the high voltage.
Paul: Batteries and what address these.
Paul: Investments, which we're doing locally and that is part of the drivetrain of course, because out drivetrains as you know they're not all late consist of Ice's.
Paul: But in.
Paul: But also a.
Paul: They consist of electric drives and we're investing there where we need to create new capacities wherever we want to grow.
Paul: It is mainly the electric drives right now so to answer your question, we're doing exactly that more localization in order to enable our growth and as far as said North American market is concerned we are quite confident that we can generate further growth with our products.
Paul: We don't.
Paul: Two remaining on a status quo, where we're trying to safeguard what we have achieved so far no we see a growth potential there and that's why we're investing there.
Paul: And your first question U S MCA that it's a very logical construct.
Paul: Where all parties concerned are profiting and that means more localization.
Paul: <unk> is being useful.
Paul: And it also leads to the effect that you can export more and then.
Paul: What I call the export credit.
Paul: It can be included in this logic and that would be a good result.
Paul: But to get to a point, where we could.
Paul: Say that.
Paul: What we have.
Speaker Change: Talk with each other everybody and we will achieve our balance and hopefully this will happen during the course of this year. So we have time for two more questions. Please go ahead with your questions. The next question is by.
Paul: Christophe reminded by a DPA please switch on your microphone.
Speaker Change: Good morning, I have two questions. One is quite simple about your yearly forecast.
Paul: Head count was out of the previous year's level.
Paul: I expect that to remain like that and then back to the cost of the tariffs and your yearly forecast you mentioned what.
Paul: Costs to expect.
Paul: I mean.
Paul: <unk>.
Paul: Updated forecast how much of an effect will the tariffs have in total.
Paul: And maybe you can tell.
Paul: <unk> in particular, what the effect of the U S tariffs will be.
Speaker Change: Well. Thank you Mr <unk> and Mr. <unk> will answer your questions.
Speaker Change: Good morning, Mr. Yes, I can confirm that as far as the head count goes.
Speaker Change: Well.
Speaker Change: Stay on previous year's level.
Speaker Change: For the whole world and we will stay in that corridor.
Speaker Change: I cannot give you any precise figures right now but of course, we can calculate based on our guidance. What we said in March it is about one percentage point and then it depends on what our negotiations will lead to that will be a slight.
Speaker Change: Negative effect compared to March 12, but it is all within our guidance for our automotive section, but also for that group result, and we will.
Speaker Change: Tier two hour.
Speaker Change: Tier two the figures mentioned in our guidance.
Speaker Change: And then the last question, but I missed it.
Speaker Change: Okay.
Speaker Change: From automobile book.
Speaker Change: Just switching to your microphone good morning.
Speaker Change: I have two are trying to have questions.
Speaker Change: One more question about the U S figures.
Speaker Change: You mentioned the figures as of March, but you said that there were some.
Speaker Change: What you expect.
Mr. Paul: Mr. Mr. Paul could you speak up.
Speaker Change: Hard to understand is it better now.
Speaker Change: Is it better now.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: You said something about 4% in March and.
Speaker Change: That there were some.
Speaker Change: What do you expect just expectations for the rest of the year and a second question and at this a question about localization referring too.
Speaker Change: Germany.
Speaker Change: Yes.
Speaker Change: <unk> the flexibility of your protection network and a large number of the vehicles, which are being exported.
Speaker Change: The U S.
Speaker Change: Yeah actually being produced a single thing and Bavaria, and what effect will that have on the production.
Speaker Change: Well the tariffs have and does that mean adjustments in the production.
Speaker Change: These were two questions or two and a half questions. Whether the next question would be a comment on what Mr. <unk> said <unk> had quite impressive figures for the U S. As far as the investments goes over the course of the years, but the us government.
Speaker Change: New about these figures said they would never interested in that so.
Speaker Change: Why are you so optimistic as far as your <unk>.
Speaker Change: <unk> go that they will be more successful in the future.
Speaker Change: Okay. Mr. Bulk, we will start with Mr. Metal and then the last part about the asphalt answered by Mr. <unk> and good morning, Mr. Eric bulk as I said earlier.
Speaker Change: We expect growth in the United States and you should not overlook one thing.
Speaker Change: Unlike other Oems as far as our footprint in the U S dose, we have advantages, we're producing and selling X three X four produced and Spartanburg X 567, <unk> that is.
Speaker Change: That is a main difference compared to some of our competitors that has a clear advantage and we will make use of that.
Speaker Change: And.
Speaker Change: Sure.
Speaker Change: Effects on other productions of course.
Speaker Change: We use our global production network worldwide, we're optimizing that.
Speaker Change: The flows of goods into different.
Speaker Change: Regions, and we're mitigating tariff effects through that.
Mr. Bulk: Mr. Bulk of course, you are correct.
Speaker Change: The U S government.
Speaker Change: New about it beforehand.
Speaker Change: <unk> aware of that but in our discussions we have stressed.
Speaker Change: What it would mean.
Speaker Change: <unk> on a 100%.
Speaker Change: 100% local for local system.
Speaker Change: That that would have two effects of course Q.
Speaker Change: Could.
Speaker Change: Produce other vehicles in the U S.
Speaker Change: Which would increase the volume, but other vehicles.
Speaker Change: Could.
Speaker Change: <unk> no longer be billed in U S. Because of the volume that it wouldn't be worth it but in total the overall volume, which decrease in the U S and nobody wants to see that.
Speaker Change: And that is something we're noticing and.
Speaker Change: Why that is not at the hard disk.
Speaker Change: Discussion that has to do with the fact that <unk>.
Speaker Change: Mr. Mitchell mentioned, we're the only ones who have such a footprint.
Speaker Change: So people do understand the whole situation quite well.
Speaker Change: Thank you Mr mental Mr. Zips, it that was our.
Speaker Change: From conference for the first quarter. Thank you so much.
Speaker Change: So that was from Munich.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: For the fourth quarter.
Speaker Change: Thanks.
Speaker Change: Great.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Bob.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: For the fourth quarter.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Is there a bottleneck.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Zero.
Speaker Change: During the fourth quarter.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: All right.
Speaker Change: Great.
Speaker Change: Bob.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: No.
Speaker Change: Okay.
Speaker Change: Zero.
Speaker Change: For the fourth quarter.
Speaker Change: Great.
Speaker Change: Thanks.
Speaker Change: Alright.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Q4 results.
Speaker Change: No.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: During the fourth quarter.
Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Both.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: During the fourth quarter.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Bob.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: For the fourth quarter.
Speaker Change: Great.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Zero.
Speaker Change: For the fourth quarter.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Thanks, Matt.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: During the fourth quarter.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Perfect.
Speaker Change: Sure Matt.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: For the fourth quarter.
Speaker Change: Great.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Bob.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: That's a mouthful.
Speaker Change: Sure.
Speaker Change: [music] above.
Speaker Change: Great.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Right.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: More robust.
Speaker Change: Great.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Right.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Our Q4 results.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: During the fourth quarter with us.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Alright.
Speaker Change: Yes.
Speaker Change: Both.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: No.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Bob.
Speaker Change: Got it.
Speaker Change: Thank you.
Speaker Change: Alright.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Or bottleneck.
Speaker Change: Sure Matt.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: For the fourth.
Speaker Change: One of the above.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Perfect.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Zero.
Speaker Change: For the fourth quarter.
Speaker Change: Great.
Speaker Change: Great.
Speaker Change: Alright.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Thanks, Matt.
Speaker Change: Okay.
Speaker Change: Zero.
Speaker Change: For the fourth quarter.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: All right.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Thanks, Paul.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Hello, Matt.
Speaker Change: <unk>.
Speaker Change: Okay.
Speaker Change: In the fourth quarter.
Speaker Change: Great.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: You're talking about.
Speaker Change: Sure Matt.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: During the fourth quarter.
Speaker Change: Great.
Speaker Change: Great.
Speaker Change: Bob.
Speaker Change: All right.
Speaker Change: Great.
Yes.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Zero.
Speaker Change: For the fourth quarter.
Great.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Sure Matt.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: We'll talk more about that.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: All right.
Speaker Change: Great.
Speaker Change: Bob.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: No.
Speaker Change: Okay.
Speaker Change: Zero.
Speaker Change: For the fourth quarter bump.
Speaker Change: Great.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Our Q4 results.
Speaker Change: No.
Speaker Change: Okay.
Speaker Change: Zero.
For the fourth quarter and above.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Both.
Speaker Change: Bob.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: Hello, Matt.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: First of all the above.
Speaker Change: Great.
Speaker Change: Sure.
Speaker Change: All right.
Speaker Change: Great.
Speaker Change: During the fourth quarter.
Speaker Change: Thanks.
Speaker Change: Q4.
Speaker Change: Youre welcome.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: During the fourth quarter with us.
Speaker Change: Great.
Speaker Change: Great.
Speaker Change: Alright.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thanks, Paul.
Speaker Change: We're talking about.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Fourth quarter robust.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Youre welcome.
Speaker Change: Sure Matt.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: During the fourth quarter.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: Our Q4 results.
Speaker Change: Sure Matt.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: For the fourth quarter with us.
Great.
Speaker Change: Great.
Speaker Change: Alright.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Youre welcome.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: For the fourth quarter and above.
Speaker Change: Great.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Right.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Youre welcome.
Speaker Change: Hello, Matt.
Speaker Change: Sure.
Speaker Change: We'll talk more about.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: As a result.
Speaker Change: Thanks.
Speaker Change: Q.
Speaker Change: You're talking about.
Speaker Change: Sure Matt.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: During the fourth quarter.
Speaker Change: Great.
Speaker Change: Great.
Speaker Change: Alright.
Speaker Change: Great.
Speaker Change: During the fourth quarter.
Speaker Change: Bob.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Zero.
Speaker Change: Above.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: During the fourth quarter.
Speaker Change: Okay.
Speaker Change: Q4.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thanks.
Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: The fourth quarter and above.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Perfect.
Speaker Change: Okay.
Speaker Change: Bob.
Speaker Change: Hello, Matt.
Speaker Change: Yes.
Speaker Change: Zero.
Speaker Change: During the fourth quarter.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Great.
Speaker Change: During the fourth quarter.
Speaker Change: Bob.
Speaker Change: Thanks.
Speaker Change: We were profitable.
Speaker Change: Okay.
Speaker Change: Okay.
Sure.
Speaker Change: For the fourth quarter.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Right.
Speaker Change: Yes.
Speaker Change: Bob.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: But all of that.
Speaker Change: Sure.
Speaker Change: For the fourth.
Speaker Change: One of the above.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: All right.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: The bottleneck.
Speaker Change: Sure.
Speaker Change: <unk>.
Speaker Change: Zero growth.
Speaker Change: During the fourth quarter.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thanks, Paul.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: During the fourth quarter and above.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Okay.
Okay.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: In the fourth quarter.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Hello, Matt.
Speaker Change: Okay.
Speaker Change: Good morning.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Alright.
Speaker Change: Great.
Pro forma.
Speaker Change: Okay.
Speaker Change: You're talking about.
Speaker Change: No.
Speaker Change: Zero.
Speaker Change: For the fourth quarter.
Speaker Change: Good morning.
Speaker Change: Yeah.
Speaker Change: All right.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Perfect.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Sure Matt.
Speaker Change: Sure.
Speaker Change: Zero.
Speaker Change: During the fourth quarter.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: All right.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Okay.
No.
Speaker Change: Okay.
Speaker Change: Our partner.