Half Year 2026 RATIONAL AG Earnings Call

August 6, 2026

Speaker #1: Good afternoon, and welcome to Rational's earnings call for the second quarter of the fiscal year, 2026. The results will be presented by the CEO, Dr. Peter Stadelmann, and the CFO, Jörg Balther.

Stefan Arnold: Good afternoon, welcome to Rational's earnings call for Q2 of the fiscal year 2026. Results will be presented by the CEO, Dr. Peter Stadelmann, and the CFO, Jörg Walter. Thanks to everyone who submitted their questions in advance. They will be answered after the presentation. To avoid duplications of questions and, of course, for your convenience, I will post all the questions that have already been submitted to the company in the chat box on the lower right-hand corner. Should you have any additional questions, please feel free to also enter them in our chat box on the lower right-hand corner as well. Please note that in order to ensure a smooth and uninterrupted presentation, Rational has chosen to use a static image instead of a live camera feed for today's presentation.

Speaker #1: Thanks to everyone who submitted their questions in advance, they will be answered after the presentation. To avoid duplications of questions and, of course, for your convenience, I will post all the questions that have already been submitted to the company in the chat box on the lower right-hand corner.

Speaker #1: Should you have any additional questions, please feel free to also enter them in our chat box on the lower right-hand corner as well. Please note that in order to ensure smooth and uninterrupted presentation, Rational has chosen to use a static image instead of a live camera feed for today's presentation.

Speaker #1: Also, be aware that this event will be recorded, and you will be able to review it later on Research Hub. We're looking forward to an insightful exchange, and I will now hand it over to Dr. Stadelmann.

Stefan Arnold: Be aware that this event will be recorded, you will be able to review it later on Research Hub. We're looking forward to an insightful exchange, I will now hand it over to Dr. Stadelmann.

Speaker #2: Good afternoon, and thank you for joining us. First half of 2026 developed in line with our expectations. Despite continued geopolitical and economic uncertainties we delivered solid growth, maintained strong profitability, and confirmed our full-year outlook.

Peter Stadelmann: Good afternoon, thank you for joining us. H1 of 2026 developed in line with our expectations. Despite continued geopolitical and economic uncertainties, we delivered solid growth, maintained strong profitability, confirmed our full-year outlook. A proof for our strong market position and innovation leadership is the iHexagon, the world's first and only cooking solution using 3 energy sources simultaneously and smart. Loft 56 is a highly frequented restaurant in Ireland. The chef explains why he is about to buy even a second iHexagon, please note what the customer is using its former oven for these days. Enjoy movie. Yeah. You had some real feedback from an existing customer, I think can understand now also the potential that is in the iHexagon technology.

Speaker #2: Proof of our strong market position and innovation leadership is the AI Hexagon, the world’s first and only cooking solution using three energy sources simultaneously and smartly.

Speaker #2: Loft 56 is a highly frequented restaurant in Ireland. The chef explains why he is about to buy even a second iCombi Pro, and please note what the customer is using its former oven for these days.

See.

Yes. So you had some real feedback from an existing customer.

And I think can understand now also.

The potential that is in the I hexagon technology.

Peter Stadelmann: Another important event was the National Restaurant Association Show 2026 In Q2, which takes place in April, we run 52 arena shows where our cooking solutions could be watched in action, we created more leads in the show than in 2025. The high level of customer engagement and interest in our cooking systems confirms the significant growth potential we continue to see in this strategically very important market. Another event were the Cooking for Change challenges or initiative from Sodexo. Rational is Sodexo's global preferred supplier for cooking solutions. Sodexo is the world's biggest catering company, employing more than 426,000 staff and serving 80 million dishes per day. We support them in their Cooking for Change initiative to promote sustainable cuisine. 500 of Sodexo chefs participated globally in this challenge. It created over 20 million views on social media also gave us a lot of attention.

Another important event was the National Restaurant Association though, 2026.

In Q2, which, uh, takes place in the car.

Around 52 Arena shows where our cooking solutions could be watched in action.

and we created more leads in the show, then in 2025,

The high level of customer engagement.

And interest in our cooking systems confirms the significant growth potential. We continue to see in this strategically very important Market.

Another event where the cooking for change challenges or initiative from Sodexo.

Rationale is so dexus. Global referred supplier or cooking Solutions.

Sodexo is the world's biggest catering company, employing more than 426,000 staff and serving 80 million meals per day.

We support them in their cooking for change initiative.

To promote sustainable cuisine.

500 of sector, chefs participated globally. In this challenge.

Peter Stadelmann: Our partnership with Sodexo highlights how RATIONAL technology supports efficient resource utilization, waste reduction, and sustainable food production at global scale. We not only support challenges, we also participate ourselves. We are proud to have received another Best Managed Companies Award. This recognition reflects our long-term management approach to keep strong customer focus and entrepreneurial U.i.U. culture. In addition, we just recently got named one of 12 leading quality stocks by the German Handelsblatt. Criteria were revenue and earnings growth, high profitability, strong balance sheet, and a resilient business model. We see ourselves in great company here with the shares from Microsoft, SAP, Visa, BNP Paribas, or, for instance, Samsung. Our people remain a key competitive advantage. The entrepreneurial culture embodied in our Unternehmer im Unternehmen philosophy continues to drive customer focus, innovation, and execution across the organization.

It created over 20 million views on social media and also gave us a lot of attention.

Our partnership with Sodexo. Highlights. How rational technology supports efficient resource utilization, waste reduction and sustainable food production at global scale.

We not only support challenges. We also participate ourselves. We are proud to have received another best. Managed companies award.

This recognition reflects our long-term management approach to keep strong customer focus.

And entrepreneurial uiu culture.

In addition, we just recently got named 1 of 12, leading quality Stocks by the terminal, German handles Club.

Criteria, were revenue and earnings growth, High profitability, strong balance sheet, and a resilient business model.

we see ourselves in great comp here with the shares from Microsoft sap Visa, vnp, bar bar or for instance, Samsung,

And our people remain a key competitive Advantage, the entrepreneurial culture embodied in our philosophy.

Continues to drive. Customer focus Innovation and execution across the organization.

Peter Stadelmann: To foster that culture, to thank our employees and their families, we held our traditional summer party two weeks ago in Landsberg. More than 2,600 participants had a lot of fun and food. Let us now turn to the financial performance. Overall, we are pleased with the H1 results. We achieved profitable growth, strengthened our market position, and continued to invest in future growth opportunities. After six months, our revenues grew organically by 8% and 6% after FX adjustments. We achieved EUR 642 million. Growth was higher than in 2025 and 2024. This is in line with the expansion of our sales force by also 8% and the increase of our sales activities at the very same growth rate. Looking at the quarterly results, we see revenue increased by 4% to EUR 324 million in Q2.

To foster that culture of thanking our employees and their families.

We held our traditional summer party 2 weeks ago in Landsberg

More than 2,600. Participants have a lot of fun and food.

Let us now turn to the financial performance.

Overall, we are pleased with the first half results.

Opportunities.

After 6 months, our revenues grew organically, but 8% and 6% after e is adjustments.

We achieved 642 million euro.

Growth was higher than in 2025 to 2024.

This is in line with the expansion of our sales force by also 8% and the increase of our sales activities at the very same growth rate.

Looking at the quarterly results, we see that revenue increased by 4%.

Peter Stadelmann: In retrospect, Q1 benefited from some pull-forward effects in the United States related to pricing actions. We assess the magnitude of those pull-forward effects with EUR 6 to 8 million. The 8% and 4% growth rates in the corresponding quarters add up to the consistent 6% for the H1 2026. Underlying demand remained solid and in line with our expectations. For more details, I hand over to you.

With 324 million in the second quarter.

In retrospect the first quarter benefited from some cool forward effects.

In the United States related to pricing actions.

We assess the magnitude of those pull forward effect.

The 6 to 8 million euro.

The 8th and 4 persons in the corresponding quarters. Add up to the consistent 6% for a half year 2026.

On the line, demand range toilet and in line with our expectations.

Jörg Walter: Thank you, Peter, and also hello to everybody in this call from my side. Let me now turn to our sales development. Sales revenue by region for H1 2026. Overall, revenue growth continued to be driven by Europe, while developments in the other regions were more mixed. Let us start with Germany. Revenue increased by 9%, reflecting a demand in our home market. We are particularly pleased to see that the growth remains strong in Q2 as we had a positive one-time effect from a major stock holding dealer in Q1. Looking at Europe, excluding Germany, revenue also increased by 9% to EUR 285 million. Growth was broadly based across the region, with particularly strong developments in Austria, in Spain, in Scandinavia, Switzerland, and in Eastern Europe.

For more details and, and over to you.

Thank you, Peter and also uh, hello everybody in this call on my side. Let me now turn to our sales developer

Uh, sales revenue by region for first half.

Overall Revenue growth continues to be driven by you while development in the other divisions were more mixed.

Let us start with Germany Revenue increased by 9% reflecting a demand in our home Market. We are particularly pleased to see that the growth remains strong in the second quarter as we had a positive 1-time effect from a major stockholding dealer in the first

Jörg Walter: We also saw a return to growth in Benelux, while only a few markets, such as Turkey, remained below the prior year level. Overall, Europe continues to demonstrate its resilience and remains a highly reliable growth contributor for our group. Turning to North America, revenue increased by only 4% to EUR 150 million in H1. Before exchange rate effects, we were able to grow in H1 by 10%. Growth of the region was entirely driven by Q1. We already mentioned that, where we saw organic growth of over 23%, and one factor was the pushback to the February price increase, and that pushed the sales level of Q2 down. Now turning to Asia, revenues declined by 2%. The main reason was the continued weakness in China, where revenues were down year over year by 25%.

Looking at Europe excluding Germany Revenue. Also increased by 9% to 285. Euros. Growth was broadly based across the region, with particularly strong developments in Austria. In Spain in Scandinavia, Switzerland, and in Eastern Europe.

We also saw a return to growth in Benny books, while only a few markets such as turkey remained below the prior year.

Overall, Europe continues to demonstrate resilience and remains a highly reliable growth contributor for our working.

To North America Revenue, increased by only 4% 254 million in the first half. However, before exchange rate, in fact, we were able to grow in first half by 10.

Growth of the region was entirely driven by the first quarter. We already mandated where we saw a organic growth of all 23%. And 1 part was the rebbe on the February price increase and that pushed Place level of second quarter down.

Now, turning to Asia.

Jörg Walter: Here, we are heavily affected by Yum China's decision to source combi oven locally. This was partly offset by solid growth in Japan, India, and in several partner markets. While the short-term environment in China remains challenging, we continue to see attractive long-term opportunities across the region, and especially in China with our new product, the iCombi Pro. The smaller regions, LATAM and Rest of World, I don't want to comment in detail as we usually see higher variances on a quarterly basis here. Maybe only a word to the Near East. Dubai, the conflict with Iran is affecting our sales in this region, which is part of Rest of World, and this is one main reason why we are showing a decline in sales in this area. To summarize the regional picture, Germany and Europe remain the key growth drivers together with North America.

Revenues declined by 2%. The main reason was the continued weakness. In China, revenues were down year-over-year by 25%.

Here we are heavily affected by Young. China's decision to Source, combis Combi, open locally.

This was partly offset by solid growth in Japan, India, and in several partner markets.

While the short term environment in China remain.

Is challenging. We continue to see it practice longer and opportunities, because the region and especially China with our new product,

The smaller regions, lotta and Wester world. I don't want to comment in detail. As we usually see, higher variances on a quarterly basis here. Maybe only a word to the near Middle East Dubai. The re the conflict with Iran is affecting our sales in this region, which is part of the rest of world. And this is our main reason why we are showing a decline in sales in this area.

Jörg Walter: We also had a double-digit growth rate by 10% over Q1. Let's take a look at the development of our product groups. Starting with iCombi, revenue increased by 5% to EUR 562 million. As our largest product group, the iCombi continued to benefit from solid demand across most regions that are the effect we just talked about, and the iCombi remains the backbone of our business. Looking at the iVario, revenue increased by 14% to EUR 79 million, and as we have stated before, we generally expect the iVario to grow faster than the iCombi due to its lower market penetration and growth potential in many markets. The happy numbers once again underline this expectation, and especially positive to note here was the higher sales level in North America with a growth rate of 24%. Let me now turn to the development of our EBIT.

To summarize the regional picture, Germany and Europe Remains the key growth drivers together with North America. We also had a digital show based by 10%

Let's take a look at the development of our product groups.

62 million euro as our largest product group. The icon continued to benefit from the solid demand and response. Most regions that are the effect. We just talked about and the algorithm Remains the backbone of our business.

Looking at the ivario revenue increased by 40% to 79 million euros. And as we have stated before, we generally expect the ivario to grow faster than the iPhone, we due to a lower Market penetration.

And growth potential in many markets.

The happy number. Once again, underline this expectation and especially positive to not get was the higher sales level in North America, with a growth rate of 24%.

Jörg Walter: In H1 2026, EBIT increased by 11% year on year to EUR 170 million, with an EBIT margin that reached the highest number since many years to 26.5%. This was possible due to the positive impact from tariff refunds related to our U.S. business, which were recognized in Q2. Excluding tariff refunds, that was an amount of EUR 14 million, the profitability would have been 24.3%. This number is fully in line with our guidance for this year. Let me walk you through our profitability development a little bit in more details. We already discussed the revenue performance, we focus now on profitability. Looking at the gross profit level, cost of goods sold increased by 4% below the growth rate of the revenue. Gross margin remains affected by higher material costs, increased logistics expenses, and the tariff related effects.

Let me now turn to the development of our inhibit in the first half 2026. If it increased by 11% year on Year, from 170 million years.

with an ebit margin that reached the highest number since many years, the 26.15%

This was possible through the positive impact, from Terra refunds related to our us business.

Which were recognized in the second quarter, excluding tariff, refunds. That was an amount of 14 million euros, the profitability would have been 24.3%. This number is fully in line with our guidance for this year.

Let me walk you through our profitability development in a little more detail. We already discussed the revenue performance, so we focus now on profitability, looking at the gross profit level. Cost of goods sold in Q3 was 4% below the growth rate of the revenue.

Jörg Walter: These headwinds were more than offset by the tariff refunds that we received during Q2, as a consequence, gross profit increased by 3% with an improved margin of 59.8%. Operating expense increased by 5% year on year to EUR 250 million. As announced, we continue to invest selectively in our strategic priorities. First of all, that is R&D. Expenses here grew by 7%, reflecting our ongoing commitment to innovation and future product development. Sales and service costs increased by 5%, mainly driven by customer-facing activities and targeted initiatives to further improve our market position. At the same time, administrative expenses were slightly below the prior year level, demonstrating our continued cost discipline and cost initiatives. As we heard before, as a result, EBIT increased by 11% to a very good number for a H1 of EUR 170 million, outpacing our revenue.

Gross margin remains affected by higher material costs, increased logistic expenses, and the Tariff related factors.

These headwinds were more than upset by the terrorists.

Refunds that we received during the second quarter and as a consequence cause profit increased by 3%.

With an improved in margin of 59.8%.

Operating expense increased by 5% year on year to 20050 million euros. And as a noun, we continue to invest selectively in how strategic priorities. First of all, that is R&D expenses here, grew by 7%, reflecting our ongoing equipment, duration, and future product, development sales, and service costs, increased by 5% mainly.

driven by,

Customer facing activities in targeted initiatives to further assistance. The same time, administrative expenses were slightly below the player levels demonstrating. Our continued cost discipline can cause

Initiatives.

And as we heard before a result, if it increased by 11% who very good number for a first, half year of 170 billion out, facing or Revenue.

Jörg Walter: I don't want to comment too much on the balance sheet as it is clear that it remains very strong. Total assets increased by around 7% year on year, reflecting the continued growth of our business. Despite the high dividend payout in May of 90% our earnings of 2025, we increased the equity by nearly EUR 40 million against the June last year number. Most of that equity increase is now in our liquid funds. In addition, we have higher inventories in our overseas markets to secure our delivery abilities and also since we opened a new warehouse in Dubai. Let me conclude with our revenue and earnings outlook for this year. The economic outlook for the commercial kitchen industry remains positive despite the ongoing geopolitical uncertainties.

I don't want to comment too much on the balance sheet. Ed is this, as it is clear, that it remains very strong. Total assets increased by around 7% year on year, reflecting the continued growth of our business.

And despite the high dividends.

pay out in May of 90 percent of our earnings of 2025, we reached the equity by nearly 40 million euros against the June last year, number,

Most of that Equity increase is now in our liquid funds. And in addition we have higher inventories in our overseas markets to secure our delivery abilities. And also since we open to Warehouse in Dubai

With our revenue and earnings outlook for this year.

Jörg Walter: The out of home food service market continues to grow and driven by the persistent shortage of skilled labor, automated and efficient solutions such as combi-steamers and iVarios remain in a high demand. Therefore, we expect 2026 to continue to grow in the mid to high single-digit percentage range. After having stabilized in recent years, raw material and logistic costs have started to trend upwards again. In addition, we face a full year impact from the foreign exchange rate and the tariff situation for our exports to the US. The reimbursements of the tariffs paid mainly in 2025 helped to buffer this effect. Overall, we still expect the gross margin to come in slightly below the prior year's level. Also in this year, we will increase certain operating expenses, especially in the direct sales area.

The economic outlook for the commercial kitchen, industry remains positive, divided the ongoing geopolitical uncertainties.

The out of Home Food, Service Market continues to grow and driven by the persistent shortage of the labor, automate automated and efficient solution.

Such as Combi Steam and harryos, we make in a high demand. Therefore we expect 2026 to continue to grow in the mid to high single digit percentage range.

After having stabilized in recent years around here in logistic cost, that started to change upwards again.

Is gain rate and the Tariff situation for our exports in the United States?

The reimbursement of the tariffs paid mainly in 2025 helped with this effect overall.

We still expect across margin income in slightly below the prior years level.

And also, in this year, we will increase certain operating expens.

Jörg Walter: Cost not related to sales will be kept as stable as possible. Overall, that means that we keep our EBIT guidance. However, due to the reimbursement of tariffs, we expect the EBIT margin rather around the upper end of corridor between 25% and 26%. That concludes our presentation, and we are now happy to take your questions.

Especially in the direct sales area called modulated sales will be kept as stable as possible. And overall, that means that we keep our keep it guidance. However, due to the reimbursement of

we expect the ebit margin rather around the other end of corridor between 25 and 26%.

That concludes our presentation, and we are now happy to take your questions.

Stefan Arnold: Thank you so much for the insights that you've already shared. We did get a lot of questions before the event started. I will dive right in. First question regarding salespeople. You further developed your sales footprint. Can you talk about the further need for a ramp-up in salespeople?

Thank you so much for the insights that you've already shared. We did get a lot of questions before the event started, so I won't dive right in. Um, first question: regarding salespeople to further develop your sales footprint, can you give us—uh, can you talk about the further need for a ramp-up in salespeople?

Jörg Walter: Yes. This is an ongoing process that needs to be performed consistently in order to fuel sales growth. As we showed in the Q1 call on a slide, there is a clear causality between increasing sales force and our sales activities and development. Further market penetration means contacting the sales territories by adding salespeople.

Yes, this is an ongoing process that needs to be performed consistently in order to fuel sales growth.

As we showed in the q1, call on a slide, there is a clear causality between increasing sales force and our sales.

Activities and development.

So for further Market, penetration means compacting, the sales territories by adding salespeople.

Stefan Arnold: Great. Thank you so much. Let's continue with the next question. It's regarding China. China remains very weak. How has the acceptance of the iCombi One product been so far? Do you expect sales in China to return to growth in the coming quarters?

Great. Thank you so much. Let's continue with the next question. It's regarding China. China remains very weak. How has the acceptance of the icon B1 product been so far? And do you expect sales in China to return to growth in the coming quarters?

Jörg Walter: Yes. As you know, we do not publish any details on the iCombi One. So far we are happy with the development. I have to check for the right question. Sorry, give me a minute. I don't see it.

Yes. As you know we do not publish any uh details on the i1 but so far, we are happy with the development.

I have to check for.

The right question. Sorry, give me a minute.

I don't see it.

Stefan Arnold: Sorry. Let's continue with the next question. The update on iHexagon. Can you give us an update on iHexagon?

Jörg Walter: Yes.

Stefan Arnold: That would be appreciated. Thank you.

Sorry, let's continue. Let's continue with the next question. The, uh, update on iHexagon? Can you give us an update on iHexagon? Yes, that would be appreciated. Thank you.

Jörg Walter: Yes. No problem. Also there, as you know, we do not publish any detailed numbers. We are happy with the development so far, and as shown in the movie at the introduction, we find more and more customers which really see great benefit from using the iHexagon.

Yes yes, no problem. Also there as you know we do not publish any details.

Uh, first, uh, we are happy with the development so far and as shown in the movie, uh, at the introduction, uh, we find more and more customers, which really see great benefit from using. Yeah, I hexagon

Stefan Arnold: Great. Which regions propel the iVario sales in H1 2026? Can you give us an outlook for H2 2026?

Jörg Walter: Yes. Biggest growth came from US, France, and Iberia, so Spain and Portugal. We are confident to keep the growth rate double as high as the iCombi growth rates for the future.

Great, which region does Propel the ivario sales in the first half of 2026. And can you give us an outlook for the second half 2026? Yes, biggest growth came from us from France and Iberia. So,

Spain and Portugal.

We are confident to keep the growth rate, double as high as the iPhone, the growth rates for the future.

Stefan Arnold: Great. Could you provide an update on the market development in China, the acceptance of the iCombi One product there, and customer feedback, and also whether the product has already secured any major chain or key account contracts in that region?

Great. Could you provide an update on the market development in China? The acceptance of the icon, be 1 product there and customer feedback and also whether the product has already secured any major chain or key account contracts in that region.

Jörg Walter: Yes. Consumer sentiment in China remains subdued and continues to weigh on our business performance. The main headwind is the decline in sales to Yum China as KFC China is increasingly

Peter Stadelmann: Yes. Consumer sentiment in China remains subdued and continues to weigh on our business performance. The main headwind is the decline in sales to Yum China as KFC China is increasingly

Yes, consumer.

Sentiment in China remains subdued and continues to weigh on our business performance.

Peter Stadelmann: Shifting towards local sourcing strategy. At the same time, our Street business is developing positively. The iCombi One sales team has been set up. We are gaining new dealers for all products every month. Customer interest in the iCombi One is high, and as previously announced, we have already secured a contract with a new key account for the iCombi One.

The main headwind is the decline in sales to young China at KFC. China is increasingly shifting towards a local sourcing strategy.

At the same time, our street business is

The icon B1 sales. Team has been set up, we are gaining new dealers for all products every month.

customer interest, the icon B1 is high and as previously announced,

We have already secured a contract with a new qlik account for the icon B1.

Stefan Arnold: Thank you. Does management see any competitors boosting productions in the US as a result of tariffs? Would Rational consider investing in the US directly?

Thank you.

This management. See any competitors, boosting Productions in the US as a result of terrorists and with rational consider investing in the us directly.

Peter Stadelmann: No, we do not see this, we regularly assess the overall situation for US production.

No, we do not see this.

We regularly assess the overall reservation for our USA production.

Stefan Arnold: Great. Thank you. Could you provide more detail on the increase in the order backlog at the end of Q2, comment on the drivers behind the stronger demand trend towards the end of the quarter? Were there any changes in customer behavior? Can you discuss July trading as well?

Great. Thank you.

Could you provide more detail on the increase in the order. Backlog at the end of the second quarter and comment on the drivers behind the stronger demand Trend towards the end of the quarter and were there any changes in customer behavior? Can you discuss July trading as well?

Peter Stadelmann: First of all, monthly fluctuations are quite usual, development during Q1 and Q2 was mainly driven by the pre-buying effect in the US. The stronger demand development was driven primarily by the US, Germany, and Canada, while most other markets also contributed positively. The strong order intake in June led to a higher order backlog at quarter-end, as not all orders could be shipped before the end of the quarter. The order book was approximately EUR 10 to 15 million higher than at previous quarter-ends. We expect the higher order backlog at the end of H1 to support positive business development in H2. We do come live, you also expect a follow-up.

first of all, monthly fluctuations are quite usual, but development during q1 and Q2 was, mainly driven by the pre-b buying

effect in the United States.

The stronger demand developed was driven primarily by the US Germany and Canada. While most other markets also contributed positively

The strong order intake in June.

To a higher order. Backlog at quarter end, as not all orders could be shipped before the end of the quarter, as a result, the order back, the order book was approximately, 10 to 15 million euro higher than, at previous quarter ends.

Overall, we expect the higher order. Backlog at the end of H1 to support positive.

Business development in H2.

But you.

Stefan Arnold: Continuing with Asia, why did South Asia slightly miss the results a year ago?

Continuing with uh, Asia. Why did Asia South slightly missed the results a year ago?

Peter Stadelmann: Major impact was from Australia. The development is mainly driven by timing effects related to a large partner who restocks the warehouse as needed. Over a longer period, however, business development remains stable with no structural changes.

Major Impact was from Australia. The development is mainly driven by tiny

effects related to a large partner, riox Warehouse as needed.

Over a longer period. However, business development remains stable with no structural changes.

Stefan Arnold: Great. Thank you. Can you give us some reasons for the strong growth that we've seen in the DACH countries?

Great. Thank you. Um, can you give us some reasons for the strong growth that we've seen in the Des countries?

Peter Stadelmann: Yes. Growth in Germany was driven by one-off stock orders from several dealers in Q1, while Q2 showed broad-based growth across the business without any significant one-time effects. In Austria, growth was supported by re-winning a major Aldi offer tender at the start of the related rollout. In Switzerland, there were no specific one-off factors, with performance reflecting generally solid business development and strong market execution.

Yes, growth in Germany was driven by 1 stock orders from several dealers in U1 while Q2 showed Road based growth across across the business without any significant 1-time effects in Austria growth was supported by Rew winning. A major, all the over tender at the start of the related rollout in.

Switzerland.

There were no specific 1 of factors with performance reflecting generally solid

Business Development and strong Market execution.

Stefan Arnold: Great. Thank you. Let's continue with regions. Dr. Stadelmann, the impact from the Middle East conflict, what are you seeing?

Great. Thank you. And let's continue with regions, Dr. Startled, the impact from the Middle East conflict. What are you seeing?

Peter Stadelmann: Yes, the Middle East conflict has a limited impact on our business. Revenues in the region accounted for approximately 2% to 3% of group sales in the prior year. In H1, we recorded a sales decline of around EUR 2 million. The conflict has generally led to higher costs. However, we do not expect any material shortages or supply chain disruptions for us.

Yes, the Middle East conflict has limited impact on our business, revenues in the region, accounted for approximately 2 to 3% of group sales in the prior year in H1, we recorded a sales decline of around 2 million euro, the conflict has generally led to higher costs. However, we do not expect

Disruptions for us.

Stefan Arnold: Great. Thank you. Let's look at the US, Dr. Stadelmann. Which factors in North America enabled the currency-adjusted sales growth of a little bit over 10% in H1 2026?

Great, thank you. Let's look at the US. Dr. Salman, which factors in North America enabled, the currency adjusted sales, growth of a little bit over 10% in the first half 2026.

Peter Stadelmann: Yes. North America, especially the US, is our number one growth market due to the big open potential. 10% plus organic growth is a growth rate we would expect.

Yes, North America, especially the US is our number.

1 growth Market due to the big open potential. So 10% Plus organic growth is a growth rate. We would expect

Stefan Arnold: Which factors in North America, would you mind splitting your Q2 2026 sales growth, which was roughly 4%, into volume growth on the one hand, and business mix price growth on the other hand?

great, and which factors in North America and

Which would you mind splitting your Q2 2026 sales growth which was roughly 4% into volume growth, on the 1 hand and business mixed price growth. On the other hand,

Jörg Walter: Yes. The majority of the 6% year-on-year sales growth in H1 was driven by underlying volume growth. A smaller portion came from the regional mix, while price increases had only a minor impact on the overall growth. Specifically in Q2, volume growth remained the main driver, while price increases started to make a modest impact to the growth.

Yes.

The majority of the 6% year-on-year sales growth in H1 was driven by underlying volume growth. A smaller portion came from the regional mix while price increases had only a minor impact on the overall growth.

Specifically in Q2 volume growth remained the main driver while price increases started to make a modest impact.

To the growth.

Stefan Arnold: Great. Thank you. What costs does the group expect coming from tariffs in the second half of 2026?

Great. Thank you. What cost does the group expect coming from tariffs in the second half of 2026?

Jörg Walter: For the full year effect, we expect tariffs to be around EUR 28 to 29 million. With the reduced tariffs rates now, we expect that H2 will be a little bit less than H1.

So, for the full year affect, we expect terrorists to be around 28 to 29 minutes.

And with the reduced Terrace rates. Now we expect that the second half will be a little bit less than the first 1.

Stefan Arnold: Thank you. Continuing with tariffs, the expected development of input costs of goods sold increased by around 9% in H1 2026, excluding the refunding of the US tariff. Will this rate continue in H2 2026 as well?

Jörg Walter: Yes, it will, as we are facing an increased level of input costs. That is for steel, that is for chemicals, but also especially in the electronic sector, which will presumably not reduce in short term. We are expecting higher growth rate for the COGS also in H2.

Stefan Arnold: Great. Assuming the actual level of energy costs, which additional amount will you need to pay compared to 2025? What are you expecting?

Thank you. Also continue with tariffs, the expected development of input costs. Costs of goods of of goods sold increased by around 9%, in the first half. 26, excluding the refunding of the US tariffs will this rate continue in the second half of 2026 as well? Yes. Um, it will, as we are facing an increased level of input cost. That is for steel, that is for chemicals, but also especially in the electronical sector, um, which will presumably not reduce in short term. So we are expecting higher growth rate for the Cox also in the second.

Jörg Walter: Direct energy costs, they are very low. Only EUR 3 million for gas and electrical energy. Plus, we have around EUR 2.5 million for the fuel for our company cars. The total effect year-on-year is maybe, I don't know, half a million. It's not significant. The higher impact comes from our customers and our suppliers that are facing higher impact here.

Great. Uh assuming the actual level of energy costs, which additional amount will you need to pay compared to 2025, what are you expecting?

Stefan Arnold: Great. Looking at another cost item, wage costs, how do you expect those to develop going forward?

Direct Energy costs, they are very low, only 3 million euros for gas and electrical energy. Plus we have around 2.5 million euro for the fuel for our company gas. So the total effect year on year is maybe, I don't know, half a million so it's not significant. The higher impact comes from our customers and your suppliers that are facing higher impact, higher impact here.

Jörg Walter: Yeah, we have our regular salary round every year beginning in July. We increase our salaries for around 3.8% on average in Germany from the July on. In general, we are getting orientation from inflation rates and in Germany from the metal union negotiations. That is the current state.

Great. Looking at another cost item—wage costs—how do you expect those to develop going forward?

Yeah, we have our regular salary rounds.

Every year on beginning in July and we increased our salaries for around 3.8% in average in Germany from July on. And in general we are orientated or getting orientation from inflation rates and in Germany from the metal Union, any negotiations? Um, that is the current state

Stefan Arnold: Thank you. You've talked about other costs rising as well. One of the questions is, if we start looking into 2027 already, the US tariff refund will probably not be repeated. Bearing in mind that currently higher costs for a lot of inputs, might that trigger potential slight price increases to offset those higher costs in the coming year?

Jörg Walter: Yes, there are different scenarios in discussion. As you know, typically, we would like to avoid price increases and rather buffer this by efficiency increases. If the amount gets higher than you can do by efficiency, we typically also think about modest price increase, and we are looking at these scenarios right now.

Thank you, you can't about other costs Rising as well. And 1 of the questions is if we start looking into 2027 already, the US tariff, refund will probably not be repeated and bearing in mind that currently higher cost for a lot of inputs, might that trigger potential slight price increases to offset those higher costs in the coming year. Yes, there are different scenarios in discussion. As you know, typically we would like to avoid price increases and rather buffer this by inefficiency increases, but if the amount gets higher, then you can do by efficiency. We typically also think about modest price, increase and we are looking at these scenarios, right?

Stefan Arnold: Great. Looking at tariffs, I think you shared a calculation previously that with a 10% tariff base assumption, a list price increase of between 6% to 7% would be needed mathematically in order to maintain the absolute earnings contribution. Is that calculation still valid?

Jörg Walter: Yes, the calculation, the mathematical exercise is still correct. The absolute number, the 10%, is certainly not correct anymore. Next year, we are rather looking at around something like 14% on average on tariffs. The mathematics, the ratio between the 10% and the 6% to 7%, that is still the same.

With a 10% tariff basis. Assumption a list price increase of between 6 to 7% would be needed mathematically, in order to maintain the absolute earnings contribution. Is that calculation still valid? Yes, the calculation the mathematical exercise is still correct. Um, the absolute number. The 10% is certainly not correct anymore. Next year, we are rather looking at around something like 14% uh on your average. Um, but the mathematic, the ratio between the 10 and the 6 to 7 that is still the same.

Stefan Arnold: Thank you. What kind of marginal improvements would you expect from your service parts investment in Landsberg? How is your revenue mix split between cooking systems on the one hand, service parts, care products, and accessories on the other? What CapEx projects should investors be expecting for 2027?

Thank you. What kind of margin improvements? Would you expect from your service Parts investment in Landsberg? How is your Revenue mixed up between cooking systems on the 1? Hand Service Parts, care products and accessories on the other and what is what capex projects should investors be expecting for 2027?

Jörg Walter: Well, first of all, the primary reason for the decision to expand the service parts building in Landsberg was not to lower the costs. It's about growth. It's a decision that we need to invest in order to ensure the service parts availability, and that is the main driver. There is not really a scalability. Rather, we are having set up and step up costs. Once the building is put in operation, we are expecting higher depreciations in the area around EUR 1.5 to EUR 2 million. It will be, first of all, rather putting some more pressure on our balance sheet or on our P&L, we expect then with the further growth to buffer that. That is the majority. In terms of CapEx, new service parts building center in Landsberg, that is expected to be completed in the beginning of next year.

Well, first of all, the primary reason for our um,

For the decision, to expand the service part building in Landsberg was not, um, to lower the costs. It's, it's about, um, growth, you know. So it's this decision that we need to invest in order to ensure the Service Parts availability. And that is the, the main driver. So there is not really a scalability. Um, rather we are having

Having set up and step up the course. So once the building is fully in operation, we are expecting higher, um, higher depreciations in the area around, 1.5 to 2 million Euros. So it will be. First of all, rather, um, putting some more pressure on our balance sheet or on our pnl. But we expect them with the further growth to buffer that

um, so uh, that is in my majority uh,

Jörg Walter: We will start that in Q1 2027. In addition, we will start with the construction of a new customer experience center in Landshut, located next to the existing training centers, and that is scheduled to also be completed in the next year, in the middle of 2027.

In terms of capex, new Service Parts Building Center. N, that is expected to be completed in the beginning of next year. So, we will start that in q1 2027. In addition, we will start with the construction of the new customer experience Center months back located next to the existing training centers and that is scheduled to also begin in the next year in the middle of 2027.

Stefan Arnold: Great. Looking at guidance for this year, could you provide an update on the outlook for H2 and the remainder of the year, including input cost developments, demand trends, and expectations for key markets such as, for example, Germany and North America?

Great looking at uh, guidance for this year. Could you provide an update on the outlook for the second half and the remainder of the year including input costs, developments demand Trends and expectations for key markets such as for example, Germany and North America

Jörg Walter: Yeah. The input cost, they remained mixed, while the stainless steel base prices, they are still low. The alloy surcharges have increased more than expected and are likely to have an impact in H2. The freight costs also remain elevated, but have recently stabilized. Overall, the demand continues to be supported by the healthy order backlog. In Germany, we expect the positive momentum to continue, although it remains uncertain whether the exceptionally strong growth rates can be sustained also in H2. In North America, we continue to expect growth in the range of 10% to 15%, in line with our long-term outlook. In the US, some of the last year's headwinds, such as FX effects, are expected to ease in H2. Overall, we remain positive on the outlook for both markets.

Yes, so the input cost they remained mixed while the stainless steel base, prices were still low, the alloy Soca just have increased more than expected and are likely to have an impact in the second half.

The freight costs also remain elevated but have recently stabilized overall. The demand continues to be supported by the healthy order. Backlog in Germany, we expect the positive momentum to continue, although it remains uncertain, whether the exception is strong. Growth rates can be sustained also in the second half.

In North America, we continue to expect growth in the range of 10 to 15% in line with our long-term Outlook in the US. Some of the last year's headwinds that has ethics effects, are expected to ease in the second half. Overall, we remain positive on the outlook for both markets.

Stefan Arnold: Thank you. Looking at your balance sheet, we've seen quite a strong increase in inventories, which were up by nearly 10%. Can you give us some insight as to what the key driver behind this was?

Jörg Walter: Yes, I said that in the presentation. First of all, we opened a new warehouse in Dubai, that put on some extra stock level to the balance sheet. We have seasonally increased our stock level in overseas markets just to ensure the normal delivery availability.

Thank you. Looking at your balance sheet. We've seen quite a strong increase in inventories, which were up by nearly 10%. Can you give us some insight as to what the key driver behind this was?

Yes, sir. So that in the presentation? First of all, we opened a new Warehouse in Dubai so that put on some extra stock level to the balance sheet. And then also, we have seasonally increased our um, stock level in overseas Market, just to ensure the normal um, is agreed availability.

Stefan Arnold: Thank you. Looking at accounts payable, do you expect accounts payable to be on an overall higher level in the future? If yes, why?

Thank you. Looking at accounts payable, do you expect accounts payable to be at an overall higher level in the future? And if yes, why?

Jörg Walter: Well, the accounts payable is not a big number in our balance sheet. It's more or less on a constant level. You see in the balance sheets timing shifts between the quarters. From our side, we don't have any specific topics initiated there, it's just a random effect.

Well, the accounts payable is not a big number.

For balance sheets, it's, um, more or less on, on the same. On, on, on a constant level.

Um but you see in the balance sheet timing shifts between the quarter. So from our side, we don't have any specific

The random effect.

Stefan Arnold: Great. Thank you. Let's look at a big number in the balance sheet. You've done a special dividend this year, your equity ratio at roughly 80% is still really high and solid, some of your peers do regular share buybacks. Are you open to examining share buybacks as part of your capital returns framework, also given the share price level?

Great, thank you. Let's look at a big number in the balance sheet. Um, you've done a special dividend this year, but your equity ratio at roughly 80% is still pretty high and solid, and some of your peers to regular, share BuyBacks, are you open to examining share BuyBacks as part of your Capital returns framework also given the share price level.

Jörg Walter: Well, we never really looked into this topic. The share buybacks is not really important to us because we have a low free float of the shares and we don't want to limit that further. Our unwritten dividend policy is to a 70% payout ratio, plus a special dividend if that is possible. I think we will keep on with this policy, and they have a good chance, if its liquidity is on a high level, to think about the special dividends in the future also.

Well, we never really looked into this topic. The share BuyBacks is not really um yeah important to us because we have a low preload of the shares and we don't want to limit that.

Further. So our Unwritten dividend policy is to 70% payout ratio, plus a special dividend if that is possible and I think we will keep on with this policy. Um, and yeah, have a good chance and if it's a liquidity is on a high level to think about the specialist in the future also,

Stefan Arnold: Great. Should we expect a tariff impact next year of around EUR 28 to 29 million on EBIT as well? Do you already have an idea of where that could probably come out at?

Great. Should we expect a tariff impact next year of around, 28 to 29 million on Abid as well? Or do you already have an idea of where that could probably come out there?

Jörg Walter: That is actually around what we also plan for the next year. Certainly, we have a growth in the US market, probably it's EUR 2 to 3 million higher than for this year as our business volume is growing in the US. In general, this calculation is correct.

No, that is actually around the, the, the um, what we also planned for the next year, certainly we have a growth in the US market, so um probably it's 2 to 3 million higher than for this year as our business volume is growing in the US but in general, this calculation is correct.

Stefan Arnold: Great. I do not see any other questions as of right now. In case you want to pose a question to management, please feel free to enter it into the chat box and we will try to address it. I see that somebody is still typing, we'll give that person a chance to post a question in the chat, and chat in the meantime. Give us one minute, we'll see what the question will be. Great. It's regarding China, our Chinese competition and market shares. Could you please comment on the competitive intensity in China? Are local competitors mostly competing on price? Would iCombi One help you gain back market share?

Great. I do not see any other questions as of right now. In case you want to pose a question to management, please feel free to enter it into the chat box and we will try to address it. I see that somebody is still typing will give that person a chance to post a question in the chat.

And chat in the meantime.

give us 1 minute, but

We'll see what the question will be.

Great. Let's uh regarding China or Chinese competition. Chinese competition and Market chairs could you please comment on the competitive intensity in China or local competitors? Mostly competing on price and would icon be 1? Help you gain back market, share?

Jörg Walter: As usual, in I think a lot of industries, we see more local manufacturing. For us, that's mainly two companies. One is called Unox and the other is called No Pain. They produce, I would say, medium quality Combi ovens at, of course, lower production cost and therefore also lower sales prices, but also lower services after sales. Usually they do not offer any training

Peter Stadelmann: As usual, in I think a lot of industries, we see more local manufacturing. For us, that's mainly two companies. One is called Unox and the other is called No Pain. They produce, I would say, medium quality Combi ovens at, of course, lower production cost and therefore also lower sales prices, but also lower services after sales. Usually they do not offer any training

Yeah. So, as usual, in I think a lot of industries, we see more local manufacturing. For us, that's mainly two companies: one is called Ustar and the other is called Nopain.

They produce I would say, medium quality.

Peter Stadelmann: Not the same state-of-the-art quality in service, repairs, maintenance as we do. The iCombi One aims at being competitive again with those products like the Dopain or Justa Oven. Price-wise, we are slightly above them in list prices, but we also know that our cooking quality is above what they deliver. It must help us, again, to also have an entry model combi steamer and win some market shares there. The iCombi Pro, as you might know, is still, of course, in sales, but in most cases, we will not offer the iCombi Classic in China because especially its display function is not at that level where Chinese customers expect it to be these days.

Combi ovens at, of course, lower production costs and therefore all also lower sales prices but also lower Services of the sales. So usually they do not offer any training or not the same state of the art Quality Inn Service Repairs maintenance. As we do, the icon B1 is aimed at um,

Or aims at being competitive again with those product, those products like the no pain or just the oven, uh, price wise. We are slightly above them uh, in list prices. But we also know that our cooking quality uh is above what they delivered. So it must help us again to uh also have a entry model, Combi, steamer and win some

Um, Market chairs there, the icon be Pro as uh you might know is still of course, in sales, but we will not in. In, in most cases, we will not offer the iconic classic in China because uh, especially its display function is not as

At that level, where Chinese customers expected to be these days.

Stefan Arnold: Great. Last question is regarding North America and the performance. Given the development of your order book, what level of growth do you expect for this year to see in North America?

Great. Um, last question is regarding North America.

Effect for this year to see in North America.

Peter Stadelmann: Well, as we said, in H1, we had, before FX effects, this 10%. This is around the level that we would also expect in H2, maybe a little bit higher.

Well, as we said, we

In the first half, we had before epic setbacks this 10%. And this is around the level that we would also expect in the second half, maybe a little bit higher.

Stefan Arnold: Great. I think that concludes it. Thank you very much for the insights that you've shared and the good answers to the questions. Of course, thanks to everybody who submitted questions and also asked them during the chat. I will say two more things. This event has been recorded and will be made available later in the course of the day, and we will also send out a questionnaire shortly. If you have a second, we'd appreciate your feedback. With that in mind, I will hand it over to Dr. Stadelmann for the last final remarks.

Peter Stadelmann: Yes, thank you very much. My dear ladies and gentlemen, to close the call, please let me thank you for you actively participating. We are looking forward to staying in contact with you, so in case of any questions, please do not hesitate to contact our IR team. Laura and Stefan will always be there for you to support you and answer your questions. Our next IR event will be our IR follow-up talk next week, Tuesday, 11 August at 2:00 PM CET. You can find the subscription link on this very slide or on our homepage. The next announcement and earnings call will be on 5 November in the same setup. Please let me also announce some information on our 2026 Capital Markets Day. We are planning the CMD for 19 November.

Great, I think that concludes it. Thank you very much for the insights that you've shared and the good answers to the questions. Of course, thanks to everybody who submitted questions and also asked them during the chat, I will say two more things. This event has been recorded and will be made available later in the course of the day, and we will also send out a questionnaire shortly. If you have a second, we'd appreciate your feedback. And with that in mind, I will hand it over to Dr. Shadeland for the final remarks.

Yes, thank you very much. Uh, my dear ladies and gentlemen, to close the call. Please let me thank you for you activity participating.

We are looking forward to staying in contact with you. So, in case of any questions, please do not hesitate to contact our IR team.

Laura and Stefan will always be there for you to support you and answer your questions. Our next IR event will be our IR follow-up talk next week, Tuesday, 11th of August, at 2:00 p.m. CET. You can find the subscription link on this very slide.

Or on our homepage.

Peter Stadelmann: After having made it in Landsberg, in Wittenheim, and at Munich Airport with a lot of snow, for those remembering, in the last years, we will make it online in a webinar focusing on the virtual world of ConnectedCooking in 2026. More details will be sent out with a save to date in the coming weeks. With that, I wish you a nice summer, a good time, and on behalf of Laura, Stefan, Jörg, and myself, we are looking forward to meeting you soon. Thank you and goodbye.

The next announcement and earnings call will be on November 5th. In the same setup. Please, let me also announced some information on our 2026 Capital markets day. We are planning the CMD for November 19th.

After having made it in Landsberg, in Vietnam, and at Munich Airport with a lot of snow for those remembering in the last years, we will make it online in a webinar, focusing on the virtual world of connected cooking in 2026.

More details will be sent out with a save the date in the coming weeks.

Stefan Arnold: Thank you and goodbye.

And with that, I wish you a nice summer, a good time, and, on behalf of Lars, Stefan, Dirk, and myself, we are looking forward to meeting you soon. Thank you and goodbye.

Peter Stadelmann: Thank you.

Thank you and goodbye.

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Half Year 2026 RATIONAL AG Earnings Call

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