Q2 2026 Siegfried Holding AG Earnings Call

August 21, 2026

Speaker #1: A drop of liquid, a speck of powder, a single element. On their own, they seem small, insignificant. But combined, they evolve. They become something greater.

Speaker #1: Stronger. More effective. More purposeful. This is how old Siegfried products are created, and it’s the formula behind our success. We are a globally leading contract development and manufacturing organization.

Speaker #1: The most trusted partner to the pharmaceutical industry. Taking innovation to commercial scale, with deep scientific expertise and a diverse technology offering. We help our customers accelerate their speed to market.

Speaker #1: Enabling them to bring life-saving medicines to patients faster. From early-phase development to commercial production. From drug substance to drug product. Consistently, and with uncompromising quality.

Speaker #1: With more than 150 years of experience and a network of manufacturing sites across the world, our team of experts ensures reliability of supply for our customers.

Speaker #1: Every employee plays a vital role in our success. It is their commitment, agility, and expertise that enable us to deliver, with safety and sustainability at the core.

Speaker #1: As the needs of the pharmaceutical industry continue to evolve, we are ready for the challenges and opportunities ahead—to keep growing, to keep pushing the boundaries.

Speaker #1: To ensure the availability of safe drugs for millions of patients worldwide, we are Siegfried—taking innovations to commercial scale.

Speaker #2: Welcome to the presentation of our half-year results 2026. I'm here with Marcel Imwinkelried, our CEO, and Tanja Micki, our CFO. First, Marcel will present the highlights of our numbers.

Peter Freisler: Welcome to the presentation of our H1 2026 results. I'm here with Marcel Imwinkelried, our CEO, and Tania Micki, our CFO. First, Marcel will present the highlights of our numbers, then Tania will go into the financials in more detail, and then Marcel will talk about the progress in our strategy EVOLVE+ and the outlook. At the end, we are looking forward to take all your questions through audio and video call in the Q&A session. With that, Marcel, over to you.

Peter Freisler: Welcome to the presentation of our H1 2026 results. I'm here with Marcel Imwinkelried, our Chief Executive Officer, and Tania Micki, our Chief Financial Officer. First, Marcel will present the highlights of our numbers, then Tania will go into the financials in more detail, and then Marcel will talk about the progress in our strategy EVOLVE+ and the outlook. At the end, we are looking forward to take all your questions through audio and video call in the Q&A session. With that, Marcel, over to you.

Speaker #2: Then Tanja will go into the financials in more detail, and Marcel will talk about the progress in our strategy, Evolve Plus, and the outlook.

Speaker #2: At the end, we're looking forward to taking all your questions through audio and video call in the Q&A session. With that, Marcel, over to you.

Speaker #3: Thanks a lot, Peter. And also from my side, good morning and a warm welcome to all of you. I'm excited to present to you our half-year results 2026, together with Tanja.

Marcel Imwinkelried: Thanks a lot, Peter, and also from my side, good morning and a warm welcome to all of you. I'm excited to present to you our H1 2026 results together with Tania. Tania joined us two months ago, and it was a busy start for her with the integration of the recent acquisition. With her strong experience as a CFO of a public listed company, she's already running on full speed, so I'm very pleased to have her on board. Now let's turn to our H1 results. The Siegfried team is delivering. Let me give you a summary on the upcoming slide. The performance of the H1 is exactly according to plan. Growth is in line with our expectation. Net sales grew by 4.8% in local currencies. Also, core EBITDA margin increased from 21.6% up to 22.4%. Integration of newly acquired sites is on track.

Speaker #3: Tanja joined us two months ago, and it was a busy start for her with the integration of the recent acquisition. With her strong experience as a CFO of a publicly listed company, she's already running at full speed, so I'm very pleased to have her on board.

Speaker #3: Now, let's turn to our half-year results. The Siegfried team is delivering. Let me give you a summary on the upcoming slide. The performance of the first half of the year is exactly according to plan.

Speaker #3: Growth is in line with our expectation; net sales grew by 4.8% in local currencies. Also, core EBITDA margin increased from 21.6% up to 22.4%.

Speaker #3: Integration of newly acquired sites is on track. I will give you more details later on. Evolve Plus strategy—exciting progress. So I really will share and give you more insights later on as well.

Marcel Imwinkelried: I will give you more details later on. EVOLVE+ strategy, exciting progress. I really will share and give you more insights later on as well. With these results, we laid a solid foundation for the full year delivery. We are confident to confirm our guidance, high single-digit growth in local currencies, and an EBITDA margin above 23%. Now I am handing over to Tania for the financial update.

Speaker #3: With these results, we laid a solid foundation for the full-year delivery. We are confident to confirm our guidance: high single-digit growth in local currencies and an EBITDA margin above 23%.

Speaker #3: Now I’m handing over to Tanja for the financial update.

Speaker #4: Thank you, Marcel, and good morning to everyone from my side as well. I'm delighted to be joining you today for my first earnings call as CFO of Siegfried.

Tania Micki: Thank you, Marcel, and good morning to everyone from my side as well. I am delighted to be joining you today for my first earnings call as CFO of Siegfried. While I have only recently joined the company, I have already had the opportunity to meet many of my colleagues across the organization, and I have been impressed by the depth of expertise, commitment, and collaborative spirit of our teams. The strong focus on execution and operational excellence is clearly reflected in the results we are presenting today, and is one of the reasons I am excited to be part of Siegfried. I am very happy to have joined the company at this important stage of its development, and I look forward to supporting Siegfried in the next phase of its growth journey. I also look forward to meeting and engaging with many of you over the coming months.

Speaker #4: While I have only recently joined the company, I have already had the opportunity to meet many of my colleagues across the organization, and I have been impressed by the depth of expertise, commitment, and collaborative spirit of our teams.

Speaker #4: The strong focus on execution and operational excellence is clearly reflected in the results we are presenting today, and it is one of the reasons I'm excited to be part of Siegfried.

Speaker #4: I'm very happy to have joined the company at this important stage of its development, and I look forward to supporting Siegfried in the next phase of its growth journey.

Speaker #4: I also look forward to meeting and engaging with many of you over the coming months. With that, let me take you through our financial performance for the first half of 2026.

Tania Micki: With that, let me take you through our financial performance for H1 2026. As Marcel has just outlined, Siegfried once again delivered profitable growth in H1 2026, and I am pleased to confirm that we have established a solid foundation to deliver our expected full-year results. In line with the guidance which we issued at the closing of the acquisition in May, net sales increased to CHF 633 million, representing growth of 2.2% on a reported basis and 4.8% in local currency. Drug substances sales reached CHF 431.1 million in H1, while drug product sales amounted to CHF 201.9 million. As expected, seasonality is more pronounced this year than in previous years. This is mainly driven by the recent acquisition of three drug substances sites in the US and Australia.

Speaker #4: As Marcel has just outlined, Siegfried once again delivered profitable growth in the first half of 2026. I'm pleased to confirm that we have established a solid foundation to deliver our expected full-year results.

Speaker #4: In line with the guidance which we issued at the closing of the acquisition in May, net sales increased to 633 million Swiss francs, representing growth of 2.2% on a reported basis.

Speaker #4: And 4.8% in local currencies. Tracked substances sales reached CHF 431.1 million in the first half of the year, while drug product sales amounted to CHF 201.9 million.

Speaker #4: As expected, seasonality is more pronounced this year than in previous years. This is mainly driven by the recent acquisition of three drug substance sites in the US and Australia.

Speaker #4: As the transaction closed on May 1st, the acquisition contributed for only two months in the current period. Drug products are more second-half weighted due to the planned ramp-up of new products.

Tania Micki: As the transaction closed on 1 May, the acquisition contributed for only two months in the current period. Drug products is more H2 weighted due to planned ramp-up of new products. In addition, seasonality is driven by the nature of our production plan. Let me explain this in a bit more detail. The Siegfried Group recognizes most of its revenues at the completion of a production campaign. As the duration of these campaigns can vary from a few weeks to several months, or even more than a year, the timing of revenue recognition differs from year to year and depends on the production plan. Similar to last year, a larger share of revenue recognition events are scheduled for H2 this year, resulting in a stronger H2 weighting.

Speaker #4: In addition, seasonality is driven by the nature of our production plan. Let me explain this in a bit more detail. The Siegfried Group recognizes most of its revenues at the completion of a production campaign.

Speaker #4: As the duration of this campaign can vary from a few weeks to several months or even more than a year, the timing of revenue recognition differs from year to year and depends on the production plan.

Speaker #4: Similar to last year, a larger share of revenue recognition events are scheduled for the second half of this year, resulting in a stronger second-half weighting.

Speaker #4: Now, let's have a look at the charts on the right-hand side, where we already see the first effects of the acquisition. Our US dollar exposure has increased to 14%, compared with 10% in the prior year period, driven by the increased weight of US-generated revenues.

Tania Micki: Now, let's have a look at the charts on the right-hand side, where we already see the first effects of the acquisition. Our USD exposure has increased to 14%, compared with 10% in the prior year period, and driven by increased weight of US-generated revenues. For the full year, we expect USD exposure to increase further to around 20%, with the corresponding reductions in the share of the Swiss franc and the euro. The acquisition is also reflected in our sales mix. The drug substances share of net sales increased to 68.1% from 66.8% in the H1 of last year. For the full year, we expect the drug substances contribution to increase further to around 70%. Turning to foreign exchange rates. The US dollar and euro both weakened against the Swiss franc compared to H1 2025.

Speaker #4: For the full year, we expect U.S. dollar exposure to increase further to around 20%, with corresponding reductions in the share of the Swiss franc and the euro.

Speaker #4: The acquisition is also reflected in our sales mix. The drug substances' share of net sales increased to 68.1% from 66.8% in the first half of last year.

Speaker #4: For the full year, we expect the drug substances' contribution to increase further to around 70%. Turning to foreign exchange rates, the US dollar and euro both weakened against the Swiss franc compared to H1 2025.

Speaker #4: As a result, we experienced a currency headwind of 3.4% in drug products and 2.2% in drug substances. Based on current exchange rates, we continue to expect a currency headwind of around 2% for the full year.

Tania Micki: As a result, we experienced a currency headwind of 3.4% in drug products and 2.2% in drug substances. Based on current exchange rates, we continue to expect a currency headwind of around 2% for the full year. Importantly, our natural hedge once again worked well during the first six months, resulting in no material impact on our EBIT margin. The next slide provides the reconciliation from our reported Swiss GAAP FER results to our core results, which form the basis for how we manage and steer the business. I would like to highlight two items included in the reconciliation. The first item relates to adjustments for our foreign pension plans, while we make in every reporting period. We have reclassified CHF 900,000 of net interest on foreign pension plan form from operating expenses to financial expenses.

Speaker #4: Importantly, our natural hedge once again worked well during the first six months, resulting in no material impact on our EBIT margin. The next slide provides the reconciliation from our reported Swiss GAAP results to our core results, which form the basis for how we manage and steer the business.

Speaker #4: I would like to highlight two items included in the reconciliation. The first item relates to adjustments for our foreign pension plans, which we make in every reporting period.

Speaker #4: We have reclassified CHF 900,000 of net interest on the foreign pension plan form from operating expenses to financial expenses. In the reconciliation to core net profit, we have also adjusted for the corresponding core net interest expense.

Tania Micki: In the reconciliation to core net profit, we have also adjusted for the corresponding core net interest expense. The second item is the exclusion of CHF 400,000 of acquisition and integration-related costs from our core results. Having explained the reconciliation to our core results, let me now take you through the core income statement. In the H1 of 2026, we further improved our profitability, increasing our core EBITDA margin by 80 basis points compared with the same period last year. We achieved this despite continued increase in input costs, particularly personnel expenses. The main drivers of this improvement were productivity gains, a favorable product mix, and a strong focus on cost discipline across our entire network, including our headquarters. What has particularly impressed me is the relentless focus on operational excellence throughout the organization, which remains a core pillar of our EVOLVE+ strategy.

Speaker #4: The second item is the exclusion of 400,000 Swiss francs of acquisition and integration-related costs from our core results. Having explained the reconciliation to our core results, let me now take you through the core income statement.

Speaker #4: In the first half of 2026, we further improved our profitability, increasing our core EBITDA margin by 80 basis points compared with the same period last year.

Speaker #4: We achieved this despite the continued increase in input costs, particularly personnel expenses. The main drivers of these improvements were productivity gains, a favorable product mix, and a strong focus on cost discipline across our entire network, including our headquarters.

Speaker #4: What has particularly impressed me is the relentless focus on operational excellence throughout the organization, which remains a core pillar of our Evolve Plus strategy.

Speaker #4: This progress is also reflected at the gross profit level. Core gross profit increased to CHF 170.7 million, representing year-on-year growth of 4.7%. Core SG&A expenses increased slightly, reflecting our continued investment in systems and organizational capabilities.

Tania Micki: This progress is also reflected at the gross profit level. Core gross profit increased to CHF 170.7 million, representing year-on-year growth of 4.7%. Core SG&A expenses increased slightly, reflecting our continued investment in systems and organizational capabilities. This includes strengthening our commercial organization in line with our increased focus on commercial excellence under EVOLVE+, as well as expanding our early phase development capabilities across both drug substances and drug products. Between EBIT and core net profit, I would like to highlight two points. First, core financial expenses were slightly higher than in the H1 of 2025, reflecting the expansion of our bond financing. Second, exchange rate movements had a slightly positive impact on the result. As always, this effect is driven by currency fluctuation and can vary significantly from period to period. Let me now turn to our cash flow performance in the H1 of the year.

Speaker #4: This includes strengthening our commercial organization in line with our increased focus on commercial excellence under Evolve Plus, as well as expanding our early phase development capabilities across both drug substances and drug products.

Speaker #4: Between EBIT and core net profit, I would like to highlight two points. First, core financial expenses were slightly higher than in the first half of 2025, reflecting the expansion of our bond financing.

Speaker #4: Second, exchange rate movements had a slightly positive impact on the result. As always, this effect is driven by currency fluctuation and can vary significantly from period to period.

Speaker #4: Let me now turn to our cash flow performance in the first half of the year. Operating cash flow amounted to CHF 93.7 million in the first half, compared with CHF 149.6 million in the prior year period.

Tania Micki: Operating cash flow amounted to CHF 93.7 million in H1, compared with CHF 149.6 million in the prior year period. The decrease was primarily driven by the timing of tax payments, currency translation effects, and an increase in net working capital, largely reflecting the addition of the newly acquired sites. One of my key priorities will be to drive strong cash conversion, as this remains fundamental to our capital allocation strategy and long-term value creation. Capital expenditure was below the previous year's levels, reflecting the completion of our high-quality drug substance manufacturing facility in Minden. Investing cash flow also included acquisition-related outflows of CHF 157.4 million. Despite these investments, free cash flow remained positive at CHF 15.1 million.

Speaker #4: The decrease was primarily driven by the timing of tax payments, currency translation effects, and an increase in net working capital, largely reflecting the addition of the newly acquired sites.

Speaker #4: One of my key priorities will be to drive strong cash conversion, as this remains fundamental to our capital allocation strategy and long-term value creation.

Speaker #4: Capital expenditure was below the previous year's levels, reflecting the completion of our high-quality drug substance manufacturing facility in Minden. Investing cash flow also included acquisition-related outflows of CHF 157.4 million.

Speaker #4: Despite these investments, free cash flow remained positive at CHF 15.1 million. Financing activity generated CHF 143.3 million, primarily to fund the acquisition, resulting in net debt to core EBITDA increasing to 2.3 at the end of the period.

Tania Micki: Financing activities generated CHF 143.3 million, primarily to fund the acquisition, resulting in net debt to core EBITDA increasing to 2.3 at the end of the period. Overall, the underlying cash-generating capacity of the business remains strong. Our focus will continue to be on cash generation and net working capital management. Let me now turn to our capital allocation framework. Our capital allocation framework remains unchanged. We continue to invest in attractive growth opportunities, both organically and through M&A. These investments are designed to support sustainable top-line growth, strengthen our customer offering, and over time, contribute to margin expansion and increased cash generation. The acquisition completed in H1 is a clear example of this framework in action. It strengthens our platform, expands our capabilities, and demonstrates our ability to deploy capital selectively when we see a compelling strategic and financial opportunity.

Speaker #4: Overall, the underlying cash-generating capacity of the business remained strong. Our focus will continue to be on cash generation and net working capital management.

Speaker #4: Let me now turn to our capital allocation framework. Our capital allocation framework remains unchanged. We continue to invest in attractive growth opportunities, both organically and through M&A.

Speaker #4: These investments are designed to support sustainable top-line growth, strengthen our customer offering, and, over time, contribute to margin expansion and increased cash generation.

Speaker #4: The acquisition completed in the first half is a clear example of this framework in action. It strengthens our platform, expands our capabilities, and demonstrates our ability to deploy capital selectively when we see a compelling strategic and financial opportunity.

Speaker #4: The recent acquisitions have neither changed this framework nor our M&A strategy. M&A remains always on. At the same time, our immediate priority is the successful integration of the acquired business and the realization of the expected benefits and value creation.

Tania Micki: The recent acquisitions have neither changed this framework nor our M&A strategy. M&A remains always on. At the same time, our immediate priority is the successful integration of the acquired business and the realization of the expected benefits and value creation. We will continue to assess opportunities against the same discipline criteria: strategic fit, value creation, and an attractive return on invested capital. We will not pursue transactions simply for the sake of growth. At the same time, our approach to organic investment remains equally disciplined. Now that we have completed several major capacity expansion projects, we will focus on decreasing the capital expenditure level. This is also part of my ambition to maximize cash generation. Importantly, the ramp-up of our capacity expansion projects in Minden, Hameln, and Barberà are progressing according to plan, with the additional capacity being filled in line with our original expectations.

Speaker #4: We will continue to assess opportunities against the same disciplined criteria: strategic fit, value creation, and an attractive return on invested capital. We will not pursue transactions simply for the sake of growth.

Speaker #4: At the same time, our approach to organic investment remains equally disciplined. Now that we have completed several major capacity expansion projects, we will focus on decreasing the level of capital expenditure.

Speaker #4: This is also part of my ambition to maximize cash generation. Importantly, the ramp-up of our capacity expansion projects in Minden, Hameln, and Barcelona are progressing according to plan, with the additional capacity being filled in line with our original expectations.

Speaker #4: And Marcel will provide more detail on this in a moment. Going forward, we will continue to invest selectively in capacity, technology, and capabilities that support future customer demand, while maintaining capital expenditure in the low teens as a percentage of sales.

Tania Micki: Marcel will provide more detail on this in a moment. Going forward, we will continue to invest selectively in capacity, technology, and capabilities that support future customer demand while maintaining capital expenditure in the low teens as a percentage of sales. As expected, leverage has increased following the acquisition, and it is now our ambition to return back to pre-acquisition levels. We will put a strong focus on cash generation and deleveraging while maintaining the financial flexibility to invest in the business and act on attractive value accretive M&A opportunities when they arise. To sum up my remarks, we delivered a solid performance in H1 of the year. We executed exactly according to plan, and we established the foundation to deliver our guidance for the full year 2026.

Speaker #4: As expected, leverage has increased following the acquisition, and it is now our ambition to return to pre-acquisition levels. We will put a strong focus on cash generation and deleveraging, while maintaining the financial flexibility to invest in the business and act on attractive value-accretive M&A opportunities when they arise.

Speaker #4: To sum up my remark, we delivered a solid performance in the first half of the year. We executed exactly according to plan, and we established the foundation to deliver our guidance for the full year 2026.

Speaker #4: With that, I would like to hand back to Marcel, who will give us more insights into the execution of our Evolve Plus strategy.

Tania Micki: With that, I would like to hand back to Marcel, who will give us more insights into the execution of our EVOLVE+ strategy.

Speaker #1: Thanks a lot, Tanya, for sharing the financial insights. Now, let me provide some more insights into the good progress we have made in executing our strategy.

Marcel Imwinkelried: Thanks a lot, Tania, for sharing the financial insights. Now let me provide some more insights into the good progress we have made in executing our strategy. I will also share our outlook for the remainder of the year. Two years after the launch of EVOLVE+ strategy, we are seeing positive results across all dimensions of our strategy. The industry trends remain very much intact. Our strategy, EVOLVE+, is built on these trends. Let me give you a few examples of where we are seeing exciting progress. High demand and limited drug substance capacity in the US. We have significantly increased our capacity in the US, more details shortly. Customers are looking for supply reliability due to geopolitical uncertainty. Our global network with 16 drug substance and DP sites across the US, Europe, and Asia is the perfect answer to this need.

Speaker #1: I will also share our outlook for the remainder of the year. Two years after the launch of the Evolve Plus strategy, we are seeing positive results across all dimensions of our strategy.

Speaker #1: The industry trends remain very much intact. Our strategy, Evolve Plus, is built on these trends. Let me give you a few examples of where we are seeing exciting progress.

Speaker #1: There is high demand and limited drug substance capacity in the US. We have significantly increased our capacity in the US—more details will follow shortly. Customers are looking for supply reliability due to geopolitical uncertainty.

Speaker #1: Our global network, with 16 drug substance and TP sites across the US, Europe, and Asia, is the perfect answer to this need. Small- and mid-sized pharma companies often do not have development or manufacturing capacities.

Marcel Imwinkelried: Small mid-sized pharma does not have development manufacturing capacities. We can now offer them the complete service from preclinical to commercial, from drug substance to drug product. Pennsville and Grafton together have a really attractive offering in the US. Good news, the inflow of new projects for Grafton and Pennsville is very positive. This means our hypothesis two years ago with the announcement of new strategy of EVOLVE+ during the Capital Markets Day, which we have adapted, is now really proven. These R&D teams are almost fully booked. One important update related to commercial excellence. As you know, we have sharpened our go-to-market approach and strengthened our sales organization with more hunters. Good news also here, we were able to gain 31% more RFPs in drug products and 69 more RFPs in drug substances year to date compared to 2025.

Speaker #1: We can now offer them the complete service from preclinical to commercial, from drug substance to drug product. Essence and Grafton together have a really attractive offering in the US.

Speaker #1: Good news, the inflow of new projects for Grafton and Essence is very positive. This means our hypothesis two years ago with the announcement of the new strategy of Evolve Plus during the Capital Market Day, which we have adapted, is now really proven.

Speaker #1: These R&D teams are almost fully booked. And one important update related to commercial excellence: As you know, we have sharpened our go-to-market approach and strengthened our sales organization with more hunters.

Speaker #1: Good news also here: we were able to gain 31% more RFPs in drug products and 69 more RFPs in drug substances year-to-date compared to 2025.

Speaker #1: In drug substance, we won twice as many new innovation customers year-to-date compared to last year. After two years, the direction is clear: Evolve Plus is really working.

Marcel Imwinkelried: In drug substance, we won twice as many new innovation customers year to date compared to last year. After two years, the direction is clear. EVOLVE+ is really working. We are building a stronger platform for future organic growth. One of the most visible examples is how the recent acquisition further strengthens our global network. With our newly acquired sites, we now operate the largest global small molecule drug substance CDMO network globally. 10 sites across the US, Europe, and Asia give us a truly global footprint with a very strong presence in the US. Our offering spans the full journey from preclinical development through commercial manufacturing. This combination of scale, technology offering, and geographical reach is unique and puts us in a very strong competitive position.

Speaker #1: We are building a stronger platform for future organic growth. One of the most visible examples is how the recent acquisition further strengthened our global network.

Speaker #1: With our newly acquired sites, we now operate the largest global small molecule drug substance CDMO network. Ten sites across the US, Europe, and Asia give us a truly global footprint, with a very strong presence in the US.

Speaker #1: Our offering spans the full journey from preclinical development through commercial manufacturing. This combination of scale, technology offering, and geographical reach is unique and puts us in a very strong competitive position.

Speaker #1: Nowadays, if we are offering a new molecule, we are able to send out offers from three different locations: from Asia, Europe, and the US, and our customers can make the choice.

Marcel Imwinkelried: Nowadays, if we are offering a new molecule, we are able to send out offers from 3 different locations, from Asia, Europe, and US, and our customers can make the choice. For our customers, it is about more than just capacity. It is about supply reliability, and at the end, also the flexibility. We combine more than 150 years of experience with a Swiss quality mindset and deep technical expertise across our sites. This is an attractive proposition to customers, and we are already seeing strong momentum from our expanded US presence. Let me provide more details on that on the next 2 slides. From the day we announced the acquisition, the phone lines have been constantly ringing. Customers are curious about this additional capacity for US. We opened Wilmington for customer visits in July. Since then, 5 customers visit. Another 6 visits are scheduled in the upcoming 4 weeks.

Speaker #1: For our customer, this is about more than just capacity. It's about supply reliability and, at the end, also flexibility. We can combine more than 150 years of experience with a Swiss quality mindset and deep technical expertise across our sites.

Speaker #1: This is an attractive proposition to customers, and we are already seeing strong momentum from our expanded US presence. Let me provide more details on that in the next two slides.

Speaker #1: From the day we announced the acquisition, the phone lines have been constantly ringing. Customers are curious about this additional capacity for the US. We opened Wilmington for customer visits in July.

Speaker #1: Since then, five customer visits. Another six visits are scheduled in the upcoming four weeks. Even more important, we see very concrete interest from top-notch large and mid-sized pharmaceutical companies.

Marcel Imwinkelried: Even more important, we see very concrete interest from top-notch large and mid-size pharmaceutical companies. They are looking for capacity for in-market products as well as future product launches. The feedback has been consistently positive, and we have already submitted 3 concrete offers. This strong level of customer engagement gives us further confidence in the business plan and in our ability to deliver the targeted growth. The real value of this acquisition lies in unlocking the capacity for new and high-value business. People are the key. Our integration teams are fully focused and engaged to execute this plan. I had the opportunity to meet the team on several occasions, also together with the board as part of our strategy offsite in the US. One thing I can really tell you, this team is really hungry.

Speaker #1: They are looking for capacity for in-market products as well as future product launches. The feedback has been consistently positive, and we have already submitted three concrete offers.

Speaker #1: This strong level of customer engagement gives us further confidence in the business plan and in our ability to deliver the targeted growth. The real value of this acquisition lies in unlocking the capacity for new and high-value business.

Speaker #1: People are the key. Our integration teams are fully focused and engaged to execute this plan. I had the opportunity to meet the team on several occasions, also together with the Board as part of our strategy offsite in the US.

Speaker #1: One thing I can really tell you: this team is really hungry. Our target remains unchanged—to free up 80 cubic meters of high-quality capacity for innovative products, available from 2028 onwards.

Marcel Imwinkelried: Our target remains unchanged: to free up 80 cubic meters of high-quality capacity for innovative products available from 2028 onwards. We are on track. Transfer activities are already underway. Wilmington, the first transfer of the first product will be completed this year. Pennsville transfers have been initiated, leveraging the synergies and capabilities of both sites. At the same time, we are moving forward with new business. As capacity is freed up, we will gradually start development and transfer in activities for new exclusive products. We expect first revenues from this new business in 2027, followed by a step-by-step ramp-up from 2028 onwards. And there is more. Wilmington continues to see strong demand for the existing portfolio. To sum up, we are moving fast, we are delivering according to our plan, and we remain fully on track to unlock the full value of this acquisition.

Speaker #1: We are on track. Transfer activities are already underway. In Wilmington, the first transfer of the first product will be completed this year. In Bensville, transfers have been initiated, leveraging the synergies and capabilities of both sites.

Speaker #1: At the same time, we are moving forward with new business. As capacity is freed up, we will gradually start development and transfer-in activities for new, product-exclusive products.

Speaker #1: We expect first revenues from this new business in 2027, followed by a step-by-step ramp-up from 2028 onwards. And there is more: Wilmington continues to see strong demand for the existing portfolio.

Speaker #1: To sum up, we are moving fast. We are delivering according to our plan, and we remain fully on track to unlock the full value of this acquisition.

Speaker #1: A key priority of our strategy, Evolve Plus, is to further broaden our technology offering. This is absolutely key to attracting new business, especially from small and mid-sized pharma.

Marcel Imwinkelried: A key priority of our strategy, EVOLVE+, is to further broaden our technology offering. This is absolutely key to attract new business, especially from small and mid-size pharma. Good news, all our strategic technology upgrades are coming online as planned. El Masnou, additional lines progressing well. The site recently shipped the first sterile products to the US. This is an important milestone after a successful FDA audit and an approval. Minden product transfers are progressing as planned. The first large full campaign was produced and packed earlier this year. The new production facility is now really on stream. Early phase development, as already explained, strong project inflow into our US acceleration hub continues. Barberà, first development projects for spray drying are being executed while we are building up the commercial capacity till end of this year.

Speaker #1: Good news: all our strategic technology upgrades are coming online as planned. Elmasnu additional lines are progressing well. The site recently shipped the first sterile products to the US.

Speaker #1: This is an important milestone after a successful FDA audit and an approval. Minden product transfers are progressing as planned. The first large, full campaign was produced and packed earlier this year.

Speaker #1: The new production facility is now on stream, really on stream. Early-phase development has already explained strong project inflow, and inflow into our US acceleration hub continues.

Speaker #1: Barbera, the first development projects for spray drying are being executed while we are building up the commercial capacity until the end of this year. Hamel, the first preferred syringe line is coming online as planned.

Marcel Imwinkelried: Hameln, the first pivotal 2-inch line is coming online as planned, and this progress confirms that it was the right decision to broaden our technology portfolio in these strategic areas. To sum up, we have delivered a solid performance in the H1 of the year. We have executed according to our plan, and we have laid the foundation that makes us confident to confirm our guidance for the full year 2026 and beyond. We have a laser focus on the execution of our strategy, EVOLVE+, to ramp up our future organic growth. To unlock the full value of our acquisition, and most important, we focus to be the reliable partner for our customers. On-time delivery, top quality, and to make sure that our products are helping millions of patients worldwide. This makes us confident on our positive midterm outlook.

Speaker #1: And this progress confirms that it was the right decision to broaden our technology portfolio in these strategic areas. To sum up, we have delivered a solid performance in the first half of the year.

Speaker #1: We have executed according to our plan, and we have laid the foundation that makes us confident to confirm our guidance for the full year 2026 and beyond.

Speaker #1: We have laser focus on the execution of our strategy, Evolve Plus, to ramp up our future organic growth. To unlock the full value of our acquisition, and most important, we focus to be reliable.

Speaker #1: We are the reliable partner for our customers, ensuring on-time delivery and top quality, and making sure that our products are helping millions of patients worldwide. This gives us confidence in our positive mid-term outlook. Siegfried will continue profitable growth with capex in the low teens, or even closer to 10, in the near future.

Marcel Imwinkelried: Siegfried will continue profitable growth with CapEx in the lower teens, or even closer to 10% in the near future. M&A is always on at the right price and for the right business. We will continue our journey step by step, year by year. Thanks for your attention now. I am handing over to Peter for the Q&A session.

Speaker #1: And of course, M&A is always on—at the right price and for the right business. We will continue our journey, step by step, year by year. Thanks for your attention, and now I am handing over to Peter for the Q&A session.

Speaker #2: We will now start with the Q&A session. We're looking forward to taking your questions through audio or video call, or you can also type your question into the web chat.

Peter Freisler: We will now start with the Q&A session. We are looking forward to take your questions through audio or video call, or you can also type in your question into the web chat. The first question is from Laura Pfeiffer. Laura, can you hear us?

Speaker #2: The first question is from Laura Pfeiffer. Laura, can you hear us?

Laura Pfeiffer: Yes, I can. Can you hear me?

[Analyst 1]: Yes, I can. Can you hear me?

Speaker #3: Yes, I can. Can you hear me?

Speaker #2: Perfect.

Peter Freisler: Perfect.

Speaker #1: Yes, we do. Hi Laura.

Marcel Imwinkelried: Yes, we do. Hi, Laura.

Speaker #4: Hi Laura. Good morning.

Tania Micki: Hi, Laura. Good morning.

Laura Pfeiffer: Good. So good morning, everyone, and thanks for taking my questions. I have three, maybe if I can go one by one, would be appreciated. So maybe first on drug substances. Your guidance now includes some small volumes from the previously answered large contract. Here, can you please specify what order is exactly back on? Is it like the usual order size and most of this will be delivered next year, or is it just a small amount that will be effective for the H2? So that's just a clarification.

[Analyst 1]: Good. So good morning, everyone, and thanks for taking my questions. I have three, maybe if I can go one by one, would be appreciated. So maybe first on drug substances. Your guidance now includes some small volumes from the previously answered large contract. Here, can you please specify what order is exactly back on? Is it like the usual order size and most of this will be delivered next year, or is it just a small amount that will be effective for the H2? So that's just a clarification.

Speaker #3: Good, so good morning, everyone, and thanks for taking my questions. I have three—maybe if I can go one by one, that would be appreciated.

Speaker #3: So maybe first on drug substances. Your guidance now includes some small volumes from the previously answered and large contract. Here and here, can you please specify what order is exactly back on?

Speaker #3: Is it like the usual order size, and most of this will be delivered next year, or is it just a small amount that will be effective for the second half?

Speaker #3: So that's just a clarification.

Marcel Imwinkelried: Thanks a lot for this question, Laura, because I am expecting that plenty of you would ask the same question. This is now really defined and also cleared out with the customer. So the additional business, what we are gaining compared to the last guidance which we had, is marginal. But now everything is in, now with the full confirmation also for the guidance which we gave in February and also after closing. So everything is in and, of course, next year, business as usual.

Speaker #1: Thanks. Thanks a lot for this question, Laura, because I am expecting that plenty of you would ask the same question. So this is now really defined and also cleared up.

Speaker #1: You know, with the customer. So the additional business that we are gaining compared to the last guidance we had is marginal. But now, everything is in.

Speaker #1: Now with the full confirmation also for the guidance which we gave in February, and also after closing—so this, everything is in, and of course, next year, business as usual.

Speaker #3: Okay, thank you for that one. And then maybe on drug products—it grew only a little bit in H1, but you point to the planned ramp-up of new products in H2.

Laura Pfeiffer: Okay. Thank you for that one. Then maybe on drug products, it grew only a little bit in H1, but you point to the planned ramp-up of new product in H2. I am just wondering if you could tell us a little bit more which site, technology, and products will drive this acceleration. Specifically also here, what is the timeline on the first protein degrader project? Is that on track, and when will it have an impact on growth in DP?

[Analyst 1]: Okay. Thank you for that one. Then maybe on drug products, it grew only a little bit in H1, but you point to the planned ramp-up of new product in H2. I am just wondering if you could tell us a little bit more which site, technology, and products will drive this acceleration. Specifically also here, what is the timeline on the first protein degrader project? Is that on track, and when will it have an impact on growth in DP?

Speaker #3: I'm just wondering if you could tell us a little bit more about which sites, technology, and products will drive this acceleration, and specifically also, what is the timeline on the first protein degrader project?

Speaker #3: Is that on track, and when will it have an impact on growth in DP?

Speaker #1: Okay, very good. First of all, I think we have quite a few new products which we are transferring in, and of course, that's also the reason that we see bigger seasonality now in the second half of the year.

Marcel Imwinkelried: Okay. Very good. First of all, I think we have quite some new products which we are transferring in, and of course, that is also the reason that we see then a bigger seasonality now in the second half of the year. So of course, the second half of the year will be stronger for DP compared to the first half of the year. Last year, it was 50/50. Now, second half will be stronger. To come back to the second question, in which locations, it is in 2 different locations where we are transferring, as we speak, new business, which will really then go further, not only for the second half of the year, but also for the upcoming years then as well. The second question about the protein degrader, as I already mentioned that during the full year presentation in February, we won 3 protein degraders.

Speaker #1: So, of course, the second half of the year will be stronger for DP compared to the first half of the year. Last year, it was 50/50.

Speaker #1: Now second half will be stronger. To come back to the second question and in which locations it's in two different locations where we are transferring as we speak new business which will really then go further not only for the second half of the year but also for the upcoming years then as well.

Speaker #1: The second question about the protein degrader—as I already mentioned during the full-year presentation in February—you know we won three protein degraders.

Speaker #1: So it's not only drug product. We won also in drug substance as well. And this is well on track. But of course, the first year is more related to tech transfer, method transfer, and then, of course, the volume will start then in one year and afterwards, and onwards, then really to grow year by year.

Marcel Imwinkelried: It is not only in drug product, we won also in drug substance as well, and this is well on track. But of course, the first year is more related to tech transfer, method transfer, and then, of course, the volume will start then in 1 year and afterwards and onwards then really to growth year by year.

Laura Pfeiffer: Okay, so this will only have an impact from 2027 onwards?

[Analyst 1]: Okay, so this will only have an impact from 2027 onwards?

Speaker #3: Okay. So this will only have an impact from '27 onwards.

Speaker #1: I think this has already had an impact this year, but, you know, as you are doing the tech transfer, the impact really on the sales' absolute number is marginal.

Marcel Imwinkelried: It has already an impact this year, but as you are doing the tech transfer, the impact really on the sales absolute number is marginal, really. It is really changing then as soon as you are starting with the commercial production. This is ramping up now next year and afterwards.

Speaker #1: Really, it's really changing then as soon as you are starting with the commercial production. So this is ramping up now—next year and afterwards.

Speaker #1: Yeah.

Speaker #3: Okay, great. No, I think that's clear. And then maybe the last question is quickly on the margin guidance. I mean, you already had 22.4% in H1.

Laura Pfeiffer: Okay, great. I think that is clear. Then maybe the last question is quickly on the margin guidance. You had already 22.4% in H1. Your guidance is unchanged at above 23%. Just wondering if there are any kind of tailwinds or headwinds that we have to consider when we think about the H2 margin.

[Analyst 1]: Okay, great. I think that is clear. Then maybe the last question is quickly on the margin guidance. You had already 22.4% in H1. Your guidance is unchanged at above 23%. Just wondering if there are any kind of tailwinds or headwinds that we have to consider when we think about the H2 margin.

Speaker #3: Your guidance is unchanged at above 23%. Just wondering if there are any kind of tailwinds or headwinds we should consider when we think about the H2 margin.

Speaker #4: No, Laura, I think it's here. You just have more of a profitable mix effect; that would be maybe what makes the H1 2026 a little bit more than 2025 proportionally.

Tania Micki: No, Laura Pfeiffer, I think it is here you just have more of a profitable mix effect. That would be maybe what makes the H1 2026 a little bit more than 2025 proportionally. Also, of course, we have the impact already of the operational excellence and also what Marcel mentioned, the focus on delivering with the cost discipline. I would say there, it is still within the guidance that we are reconfirming for the full year, which is above 23%.

Speaker #4: But also, of course, we have the impact already of the operational excellence, and also, as Marcel mentioned, the focus on delivering with cost discipline.

Speaker #4: So I would say there, it's still within the guidance that we are reconfirming for the full year, which is above 23%.

Speaker #3: Okay. Thank you.

Laura Pfeiffer: Okay. Thank you.

[Analyst 1]: Okay. Thank you.

Speaker #2: Thanks, Laura.

Peter Freisler: Thanks, Laura.

Speaker #1: Thank you, Laura.

Marcel Imwinkelried: Thank you, Laura.

Speaker #2: The next question is from Sibel Bischoffberger. Hey, Sibel. Good morning.

Peter Freisler: The next question is from Sibylle Bischofberger. Hey, Sibylle. Good morning.

Speaker #1: Good morning, Sibel.

Marcel Imwinkelried: Good morning, Sibylle.

Speaker #4: Good morning, Sibel.

Tania Micki: Morning, Sibylle.

Sibylle Bischofberger: Good morning, and thank you for taking my question, and nice to see you, Tania, and I wish you all the best for the future at Siegfried. I have three questions. I will ask them one by one if this is okay for you.

Speaker #3: Good morning, and thank you for taking my question. Nice to see you, Tonio, and I wish you all the best for the future at Siegfried.

Speaker #3: So, I have three questions. I will ask them one by one, if that's okay with you. So, first, about the acquisition of the three sites.

Marcel Imwinkelried: Yes, please.

Sibylle Bischofberger: First, about the acquisition of the three sites. How much was the acquisition effect in the H1? Is it fair to assume that it was at around $25 million?

Speaker #3: How much was the acquisition effect in the first half? Is it fair to assume that it was around $25 million?

Speaker #4: It's pretty much in line indeed, Sibel, because we are reconfirming again the $100 million guidance that we gave when we acquired, or when we closed, the acquisition.

Tania Micki: It's pretty much in line, Sibylle, because we're confirming again the $100 million guidance that we gave when we acquired or when we closed the acquisition, and that's in line with what you have mentioned.

Speaker #4: And that's in line with what you have mentioned.

Speaker #3: Thank you. And the second question about the large contract—so now the large contract, or the orders from there, are included in the outlook for 2026.

Sibylle Bischofberger: Thank you. The second question about the large contract. Now the large contract or the orders from there are included in the outlook for 2026. Is it fair to assume that because of that shift, there is a positive effect expected in 2027?

Speaker #3: Is it fair to assume that, because of that shift, there is a positive effect expected in 2027?

Speaker #1: I hope so. But we will look at that, and we are constantly in touch with the customer. As already outlined in the past, it's an in-market product.

Marcel Imwinkelried: I hope so. We will look at that, and we are constantly in touch with the customer. As already outlined in the past, it's an in-market product, so I don't expect a big change there, but it will proceed and business as usual as already outlined.

Speaker #1: So I don't expect a big change there. But it will proceed as business as usual, as already outlined.

Speaker #4: And we provide guidance.

Tania Micki: We provide guidance in February.

Sibylle Bischofberger: And the third one, just. Sorry.

Speaker #3: The third one is just.

Speaker #4: Sorry.

Speaker #1: And of course, we will guide them as usual. Sibel, we will guide for 2027 then, in February.

Marcel Imwinkelried: And of course, we will guide them.

Sibylle Bischofberger: Yeah, okay. That is okay.

Marcel Imwinkelried: As usual, Sibylle, we will guide for 2027 then in February.

Speaker #3: Thank you very much. And just a small question about the currency effect on the 2026 results. If the currencies remain as they are, could you give us a hint as to how much impact this could have on sales and on margins?

Sibylle Bischofberger: Thank you very much. Only a small question about the currency effect on the 2026 results. If the currencies remain as they are, could you give us a hint how much it could be on sales and on margins?

Speaker #4: So, on sales, I'm estimating it to be around 2%. That's, again, as you said, expecting the currencies to not change from the level they are now.

Tania Micki: On sales, I am estimating it to be around 2%. That is, again, as you said, expecting the currencies to not change from the level they are now, especially the US dollar and the euro. From the margin we mentioned before, it is very marginal because we have a relatively good natural hedge.

Speaker #4: Especially the US dollar and the euro. From the margin we mentioned before, it's very marginal because we have a relatively good natural hedge.

Speaker #3: So, thank you very much, and have a good start, Tonio.

Sibylle Bischofberger: Thank you very much and have a good start, Tania.

Speaker #4: Thank you, Sibel.

Tania Micki: Thank you, Sibylle.

Speaker #2: Thank you, Sibel. The next question is from Estelle from Burenberg. Hi, Estelle. Good morning.

Marcel Imwinkelried: Thank you, Sibylle. The next question is from Estelle from Berenberg. Hi, Estelle. Good morning. Morning, Estelle.

Peter Freisler: Thank you, Sibylle. The next question is from Estelle from Berenberg. Hi, Estelle. Good morning.

Speaker #1: Good morning, Estelle.

Marcel Imwinkelried: Morning, Estelle.

Speaker #4: Good morning.

Tania Micki: Good morning.

Speaker #3: Yes, good morning, all. Thank you very much for taking my question. I wanted to ask about the capacity that you are freeing up with the newly acquired sites in the US.

[Analyst] (Berenberg): Yes, good morning, all. Thank you very much for taking my question. I wanted to ask about the capacity that you are freeing up with the newly acquired sites in the US. The transfers that are happening right now, are these already to free up that 80 cubic meter capacity? Or are you currently identifying other further assets to be freed in order to reach those 80 cubic meters?

Estelle Bétrisey: Yes, good morning, all. Thank you very much for taking my question. I wanted to ask about the capacity that you are freeing up with the newly acquired sites in the US. The transfers that are happening right now, are these already to free up that 80 cubic meter capacity? Or are you currently identifying other further assets to be freed in order to reach those 80 cubic meters?

Speaker #3: The tech so the transfers that are happening right now are this is already to free up that 80 cubic meter capacity or are you currently identifying other further assets to be freed in order to reach those 80 cubic meters?

Speaker #1: I like this question. Also, you know, I was also sharing, and I would like to start from a different angle here. I think also what we see is really changing.

Marcel Imwinkelried: I like this question. I was also sharing, and I would like to start from a different angle here. I think also what we see, it is really changing, for drug substance, more molecules. I was sharing with you one year ago, compared to the past when for an API, it was common to have five to seven, eight synthesis steps. It went up to 20 synthesis steps last year, and really now also happy to share with you the newest generation of small molecules. Our customers are asking us for 40 synthesis steps. So these new molecules are becoming even more complex, and it is also, by the way, triggered by artificial intelligence because they are going now for the golden molecules. So they can already, at the development, do much stronger development activities for these molecules.

Speaker #1: For drug substance, more molecules. I was sharing with you one year ago, compared to the past, when for an API it was common to have five to seven or eight synthesis steps, it went up to 20 synthesis steps.

Speaker #1: Last year, and we really now also are happy to share with you the newest generation of small molecules. Our customers are asking us for 40 synthesis steps.

Speaker #1: So these new molecules are becoming even more complex, and it's also, by the way, triggered by artificial intelligence because they are now going for the 'golden molecules.'

Speaker #1: So they can already, at the development stage, do much stronger development activities for these molecules. And good news for us now: one is really to free up the capacity in the US, to have enough capacity available for the near future for these new molecules. And, by the way, also happy to have now on stream fully the I804 facility in Minden.

Marcel Imwinkelried: Good news for us now, one is really to free up the capacity in the US to have enough capacity available for the near future for these new molecules. By the way, also happy to have now on stream fully the I804 facility in Minden. I am really confident that we can fill them very soon up. The question, of course, we are also looking how we can further free up additional capacity as well. So far, what we have and already what I shared with you is this 80 cubic meters in Wilmington. Of course, I can also confirm that we are looking how we could further expand.

Speaker #1: So I'm really confident that we can fill them up very soon. Now, the question of course is, we are also looking at how we can further free up additional capacity as well.

Speaker #1: So far, what we have, and what I already shared with you, is this: 80 cubic meters in Wilmington. But, of course, I can also confirm that we are looking at how we could further expand.

Speaker #3: Okay. Yep. Thank you very much.

[Analyst] (Berenberg): Okay. Yeah. Thank you very much.

Estelle Bétrisey: Okay. Yeah. Thank you very much.

Speaker #2: Thank you, Estelle. Next question is from Ed Hall. Good morning, Ed.

Marcel Imwinkelried: Thank you, Estelle. Next question is from Ed Hall. Good morning, Ed. Hi, Ed.

Peter Freisler: Thank you, Estelle. Next question is from Ed Hall. Good morning, Ed.

Speaker #1: Hi, Ed.

Marcel Imwinkelried: Hi, Ed.

Speaker #4: Good morning, Ed.

Tania Micki: Good morning, Ed.

Speaker #5: Good morning. Good morning, guys. Thank you for taking my questions. The first one would just be on the, I think, the updated, the confirmed guidance. And I apologize if I've missed this, but the segment guide that you originally had—I wanted to understand if that still holds or if there's any changes as you've reported this morning.

Ed Hall: Good morning. Morning, guys. Thank you for taking my questions. The first one would just be on the, I think the updated, the confirmed guidance, and apologies if I missed this, but the segment guide that you originally had, I wanted to understand if that still holds or if there is any changes as you have reported this morning. That would be my first question.

[Analyst 2]: Good morning. Morning, guys. Thank you for taking my questions. The first one would just be on the, I think the updated, the confirmed guidance, and apologies if I missed this, but the segment guide that you originally had, I wanted to understand if that still holds or if there is any changes as you have reported this morning. That would be my first question.

Speaker #5: That would be the first question.

Speaker #1: No, I think we gave this guidance at the beginning of the year also, due to the fact — due to the large contract where we had some uncertainty.

Marcel Imwinkelried: No, I think, we did this guidance beginning of the year also due to the fact, due to the large contract where we had some uncertainty, to show that up. However, in the meantime, this is settled, so we are confident, and we have an agreement, full agreement also with the customer, and we do not need to do that. In the past, always, we gave guidance for at the group level. Of course, we are always reporting also at the different cluster, that means for drug substance and drug product, and we will go back as business as usual also for the near future. As DP already, what I was outlining also for the question of the colleague previously, here DP will be stronger in the H2 of the year. That is also given, yes.

Speaker #1: To show that up. However, in the meantime, this is settled, so we are confident, and we have a full agreement also with the customer.

Speaker #1: And we don't need to do that. In the past, we always gave guidance at the group level. Of course, we are always reporting also at the different cluster.

Speaker #1: That means for drug substance and drug product that we will go back to business as usual, also for the near future. As DP, already what I was outlining also for the question of the colleague previously here, DP will be stronger in the second half of the year.

Speaker #1: That's also given. Yes.

Speaker #5: Okay, perfect. And actually, just on that, I think we've had conversations previously about a 42/58 split of revenue, and you've mentioned the stronger H2.

Ed Hall: Okay, perfect. Actually, just on that, I think we have had conversations previously about a 42-58 split of revenue, and you have mentioned the stronger H2. Is this the right sort of ballpark numbers I should think about, or has it changed somewhat?

[Analyst 2]: Okay, perfect. Actually, just on that, I think we have had conversations previously about a 42-58 split of revenue, and you have mentioned the stronger H2. Is this the right sort of ballpark numbers I should think about, or has it changed somewhat?

Speaker #5: Is this the right sort of ballpark numbers I should think about, or has it changed somewhat?

Speaker #4: It's more or less the ballpark Ed. As you know we cannot provide any more specific answer on the seasonality. But it is in that as I said in the beginning it is more pronounced also because of the acquisition.

Tania Micki: It is more or less the ballpark, Ed. As you know, we cannot provide any more specific answer on the seasonality. But as I said in the beginning, it is more pronounced also because of the acquisition. Having the larger weight, and the full 6 months is, of course, the main reason why it is driving this more pronounced seasonality.

Speaker #4: Having the larger weight and the full six months is, of course, the main reason why it's driving this more pronounced seasonality.

Speaker #1: For drug substance and TPS already outlined, we have a stronger second half of the year compared to the first half. Yes.

Marcel Imwinkelried: For drug substance and DP, as already outlined, we have a stronger H2.

Marcel Imwinkelried: For drug substance and DP, as already outlined, we have a stronger H2. Compared to the H1, yes.

Marcel Imwinkelried: Compared to the H1, yes.

Speaker #5: Very clear. Thank you very much. And then finally, if we just look at the inventory and the conversion in H2, I think outside of the acquired inventory, how should we think about this conversion, and then maybe the days outstanding for controlled substances versus maybe other products?

Ed Hall: Very clear. Thank you very much. Then finally, we just look at the inventory, and the conversion in H2. I think outside of the acquired inventory, how should we think about this conversion and then maybe the days outstanding for controlled substances versus maybe other products? Is that at a different level to what you typically see? Thank you.

[Analyst 2]: Very clear. Thank you very much. Then finally, we just look at the inventory, and the conversion in H2. I think outside of the acquired inventory, how should we think about this conversion and then maybe the days outstanding for controlled substances versus maybe other products? Is that at a different level to what you typically see? Thank you.

Speaker #5: Is that at a different level from what you typically see? Thank you.

Speaker #4: As I mentioned before, I will be focusing on cash generation. The conversion of the inventory is, of course, part of it, and that's what we will work on together with Marcel, because it is an operational part as well as a finance part.

Tania Micki: As I mentioned before, I will be focusing on cash generation. The conversion of the inventory is, of course, part of it, and that is what we will work on together with Marcel because it is operational part as well as the finance part. Yes, of course, we are working on converting it.

Speaker #4: But yes, of course, we are working on converting it.

Speaker #1: And of course, I think also, if you can imagine, just Daniel and myself, we were two weeks ago in Tasmania. And also, to highlight this, it was really an exciting trip.

Marcel Imwinkelried: And of course, I think also, if you can imagine, Tania and myself were 2 weeks ago in Tasmania.

Marcel Imwinkelried: Also to highlight this, it was really an exciting trip. Here we had 40 degrees Celsius, and they have wintertime. The interesting part is really also to say, their business model is that they are doing the first half of the year really harvesting.

Speaker #1: Here, we had 40 degrees Celsius, and they have wintertime. The interesting part is really also to say their business model is that they are doing the first half of the year really harvesting.

Speaker #1: And in the second half of the year, they are going for full production. So then, of course, also after that, we will sell and dispatch everything.

Marcel Imwinkelried: And in H2, they are going for full production. Then, of course, also after that, we will sell and dispatch everything. So also you can imagine this is also then driving this seasonality related to the networking capital. But this will feel sorted out till end of the year, according to the business.

Speaker #1: So, also, you can imagine this is also then driving this seasonality related to the net working capital. But this will be sorted out by the end of the year.

Speaker #1: According to the business.

Speaker #5: Very clear. Thank you very much, and congratulations again.

Ed Hall: Very clear. Thank you very much, and congrats again.

[Analyst 2]: Very clear. Thank you very much, and congrats again.

Speaker #1: Thank you. Thank you, Ed.

Marcel Imwinkelried: Thank you.

Tania Micki: Thank you, Ed.

Marcel Imwinkelried: Thank you, Ed.

Peter Freisler: Thank you, Ed.

Speaker #2: The next question is from Finn Scherzler from Deutsche Bank. Good morning, Finn.

Marcel Imwinkelried: The next question is from Fynn Scherzler from Deutsche Bank. Good morning, Fynn. Hi, Fynn. Good morning.

Peter Freisler: The next question is from Fynn Scherzler from Deutsche Bank. Good morning, Fynn.

Speaker #1: Hi, Finn. Good morning.

Marcel Imwinkelried: Hi, Fynn. Good morning.

Speaker #6: Good morning, and thanks for taking my questions. I really only have two short ones left for me. So, if I can come back to the Drug Products segment and the new product ramp you expect in the second half.

Tania Micki: Good morning.

Fynn Scherzler: Good morning, and thanks for taking my questions. Really only two short ones left for me. If I can come back to the Drug Products segment and the new product ramps you expect in the H2. I think in the past, we spoke of a large tableting contract that you had won. Is this among the new products that is now ramping up in the H2?

Speaker #6: I think in the past we spoke of a larger tableting contract that you had won. Is this among the new products that are now ramping up in the second half?

Marcel Imwinkelried: Exactly.

Speaker #6: And my second question, just briefly: it is...

Fynn Scherzler: My second question, just brief. It is? Okay.

Marcel Imwinkelried: Yes.

Speaker #1: Yes. That's the.

Speaker #6: And then.

Fynn Scherzler: Then-

Speaker #1: Sorry, Finn. Exactly as you said, you already made the point correctly. That's what we announced in the first half of 2024. This is now coming through exactly as stated.

Marcel Imwinkelried: Sorry, Fynn. Exactly. You made already the point correctly. That is what we have announced in H1 2024. This is now coming through. Exactly.

Speaker #6: And we can assume this is the majority of it, or are there also a couple of other projects?

Fynn Scherzler: We can assume this is the majority of it, or is there also a couple of other projects?

Speaker #1: Yeah, it's more than this one. But we cannot talk about products and also customers, but it's more than this one.

Marcel Imwinkelried: Well, it is more than this one. We cannot talk about products and also customers, but it is more than this one.

Speaker #6: Okay, okay, thanks. And then just lastly, a formality: if you could maybe quantify how much receivables factoring you had in the first half.

Fynn Scherzler: Okay. Thanks. Then just lastly, a formality. If you could maybe quantify how much receivables factoring you had in H1.

Speaker #4: It's equivalent to what we had at the end of December, so the $40 million. I will be working on decreasing it, though.

Tania Micki: It's equivalent to what we had as of end of December, so the CHF 40 million. I will be working on decreasing it though.

Speaker #6: Okay. Thank you.

Fynn Scherzler: Okay. Thank you.

Speaker #1: Thank you, Finn.

Marcel Imwinkelried: Thank you, Fynn. Thanks, Fynn. The next question is from Daniel Jelovcan. Good morning, Daniel. Good morning, Daniel.

Marcel Imwinkelried: Thank you, Fynn.

Speaker #2: Thanks, Finn. The next question is from Daniel Yelovchan. Good morning, Daniel.

Peter Freisler: Thanks, Fynn. The next question is from Daniel Jelovcan. Good morning, Daniel.

Speaker #1: Good morning, Daniel.

Marcel Imwinkelried: Good morning, Daniel.

Speaker #4: Good morning.

Tania Micki: Good morning.

Speaker #7: Good morning, all of you, and also Daniel. Good start.

Daniel Jelovcan: Good morning, all of you. Tanja, good start.

Speaker #4: Thank you.

Tania Micki: Thank you.

Speaker #7: So several questions and I ask one by one. And sorry, I have a lot of I had a lot of interruptions in my line.

Daniel Jelovcan: Several questions, I ask one by one.

Marcel Imwinkelried: Yes, please.

Daniel Jelovcan: Sorry, I had a lot of interruptions in my line, so maybe the question was already asked. Just to be sure on the lost incremental order, which we have discussed inside Amstad the last month. There are some people now saying that because it's now included, it implies a lower guidance, obviously. But you said that the impact this year is marginal. So this contract is now settled. You will get the business incrementally, but the impact, of course, with the lead time this year is minimal. Is that correct? Just to be very sure.

Speaker #7: So maybe the question was already asked. But just to be sure, on the lost—sorry, the lost incremental order—which we discussed, inside-outside order, last month.

Speaker #7: There are some people now saying that, because it's now included, it implies lower guidance, obviously. But you said that the impact this year is marginal.

Speaker #7: So this contract is now settled. You will get the business incrementally, but the impact, of course, with the lead time this year is minimal.

Speaker #7: Is that correct? Just to be very sure.

Speaker #1: Yeah, very sure, Daniel. Thanks a lot for clarifying this topic. Then let's close this chapter for the near future. I hope so.

Marcel Imwinkelried: Yeah, very sure, Daniel. Thanks a lot for clarifying this topic, and then let's close this chapter then for the near future, huh?

Daniel Jelovcan: I hope so.

Speaker #1: I hope so. Me as well—to have clarity for all of us. So, this chapter is closed. Now it’s already in there, so the effect was marginal.

Marcel Imwinkelried: I hope so, me as well, to have clarity for all of us. So this chapter is closed. Now, it's already in there, so the effect was marginal. It was a potential upside. However, as you know, we have the tendency always to guide a little bit conservative. So that's also now everything is included with the confirmation of the guidance which we gave, which is in line also with the guidance which we gave after closing. So that's in a nutshell, and I think business as usual now ongoing, yeah?

Speaker #1: It was a potential upside. However, as you know, we have the tendency to always guide a little bit conservatively. So that's also now, everything is included with the confirmation of the guidance which we gave.

Speaker #1: Which is in line also with the guidance we gave after closing. So that's it in a nutshell, and I think it's business as usual now, ongoing.

Daniel Jelovcan: Mm-hmm. But as we are already in August now or September close, it means the impact will be little because you are so late in the year, but next year, of course, the impact will be bigger, right? Just to understand.

Speaker #7: But as you are already in August now, or September closed, it means the impact will be a little, because it's just because you are so late in the year.

Speaker #7: But next year, of course, the impact will be bigger, right? Just to understand.

Speaker #1: No, next year is business as usual, as planned.

Marcel Imwinkelried: No, next year is business as usual. As planned.

Daniel Jelovcan: But the volume with this extra order should be higher.

Speaker #7: Yeah, but the volume lift is.

Speaker #4: Exactly.

Speaker #7: Extra order should be higher.

Speaker #4: Daniel, we will come back to 27 in 27 in February. We cannot talk about 27 at this stage.

Tania Micki: Daniel, we will come back to 2027 in February. We cannot talk about 2027 at this stage.

Speaker #1: So, it was related also to this year; that was a potential upside. Now we have that figured out—marginal upside, which is included in the guidance.

Marcel Imwinkelried: It was related also, for this year, that was a potential upside. Now, we have that figured out. Marginal upside, which is included in the guidance, and for next year, it is business as usual. We have an outlook or forecast with these key customers for the next 3 years, and here there is no change for 2027. We will give the guidance then in February during the full year presentation.

Speaker #1: And for next year, it's business as usual. So we have an outlook or forecast with these key customers for the next three years, and here, there is no change for 2027.

Speaker #1: But we will give the guidance then in February during the full-year presentation.

Speaker #7: Okay, and then the next question. Thank you. Is the cash flow, Daniel—you mentioned I fully understand tax payment timing has an impact on the cash flow.

Daniel Jelovcan: Okay. Then the next question, thank you. Is the cash flow, Tania, you mentioned, I fully understand tax payment timing is an impact on

Daniel Jelovcan: the cash flow, but also the inventory delta. When I look at the inventory delta, just versus the H1 2025, the delta was that inventory was up nearly CHF 200 million. That was entirely because of the M&A consolidation or maybe also ramp up of some other CapEx projects or whatever?

Speaker #7: But also the inventory delta. And when I look at the inventory delta just versus the first half of '25, the delta was that inventory was up nearly $200 million.

Speaker #7: And that was entirely because of the M&A consolidation, or maybe also a ramp-up of some other CapEx projects, or whatever.

Speaker #4: It's both. The majority is for the acquisition, and also, like Marcel mentioned, we have, for example, quite a large inventory for the Tasmania operation because they harvest in the first half of the year.

Tania Micki: It is both. Majority is for the acquisition. Also, like Marcel mentioned, we have, for example, quite a large inventory for the Tasmania operation because they harvest in the H1 of the year, and then they sell in the H2. So by definition, you have much more in the beginning, and then you have less in the H2. So it is the nature of the business. But majority is the acquisition, and then there is a portion, of course, of ramp up simply because also like Marcel mentioned, the more complex steps and the production plan. So those are two elements that are impacting.

Speaker #4: And then they sell in the second. So, by definition, you have much more in the beginning, and then you have less in the second half.

Speaker #4: So, it's the nature of the business. But the majority is the acquisition, and then there is a portion, of course, of ramp-up, simply because—also like Marcel mentioned—the more complex steps and the production plan.

Speaker #4: So, those are two elements that are impacting.

Speaker #7: Okay. And thank you. And another one is on I mean can you disclose in the end just the organic revenue growth for the group in the first half?

Daniel Jelovcan: Okay. Thank you. Another one is on, can you disclose in the end, just the organic revenue growth for the group in H1? I have my calculation, but in the past we had so many different assumptions regarding the transaction. I modeled 200 bps, to be honest, impact on group top line from M&A. Is that ballpark a good assumption?

Speaker #7: I mean, I have my calculation, but in the past we had so many different assumptions regarding the transaction that—I mean, I model 200 bps, to be honest, impact on group top line from M&A.

Speaker #7: So, is that ballpark a good assumption?

Speaker #1: No, I think what we have guided is also based on the signing and the closing. So, the contribution of booster is for this year, €100 million.

Marcel Imwinkelried: No, I think what we have guided also after signing and after closing, so the contribution of Booster is for this year, CHF 100 million annualized, and that is in line also now after 4 months. I know that you are really strong in the mathematics, so you can do the math. I think also the underlying growth is as planned.

Speaker #1: Analyzed, and that is in line also now after four months. And I know that you are really strong in mathematics, so you can do the math.

Speaker #1: So, I think also the underlying growth is as planned.

Speaker #7: But I mean, $100 million, right?

Daniel Jelovcan: But you mean $100 million, right?

Speaker #1: Yes.

Marcel Imwinkelried: Yes.

Speaker #4: 100 million dollars.

Tania Micki: $100 million.

Marcel Imwinkelried: Dollars, yes.

Speaker #1: Dollars. Yes.

Speaker #7: Yeah. I mean, not everybody got that, I heard. So.

Daniel Jelovcan: Yeah. Not everybody got that, I heard.

Marcel Imwinkelried: Yes, you are absolutely right. There was some confusion. For this year, we have the Booster for acquisition, for 8 months, and the contribution is $100 million what we have shared with you.

Speaker #1: Yes, you are absolutely right. There was some confusion. For this year, we have the booster for acquisition for eight months, and the contribution is $100 million US dollars, which we have shared with you.

Speaker #1: This is the confirmation.

Marcel Imwinkelried: This is the confirmation.

Speaker #7: By the way, for 80 million Swiss – sorry to be stubborn here – but it means when I do the math and take one-twelfth for one month, it would mean it's roughly 15 million or so in the first half impact.

Daniel Jelovcan: By the way, for CHF 80 million Swissie, sorry to be stubborn here, but it means when I do the maths and take one twelfth for one month, it would mean it is roughly CHF 15 million or so in the H1 impact.

Tania Micki: Not one twelfth, Daniel.

Speaker #4: Not 112th.

Daniel Jelovcan: That must be correct.

Speaker #7: Must be correct.

Speaker #4: Not 112th Daniel. 112th.

Tania Micki: Not one twelfth, Daniel, one tenth.

Daniel Jelovcan: 2/12.

Speaker #7: 212th.

Tania Micki: 2/10. You divide the 100 million by 10 months, right? By 8 months, sorry. I will get there.

Speaker #4: 210th. You divide the $100 million by 10 months, right? By eight months, sorry. I'll get that.

Daniel Jelovcan: That is true, yeah. On a yearly basis, it is more.

Speaker #7: Yeah, it's true. Yeah, on a yearly basis, it's more.

Tania Micki: Not 12 months.

Speaker #4: Not 12 months.

Speaker #1: Yeah, but also the seasonality, which I was just sharing with Daniel regarding the site in Australia. So there is always the same pattern: the first half of the year is really harvesting; the second half is production, and then dispatching and invoicing.

Marcel Imwinkelried: But also the seasonality, which I was just sharing, Daniel, with the site in Australia. So there is always the same pattern. H1 of the year is really harvesting, second year is production, and then dispatching and invoicing. So that is the reason also why we have even a strong seasonality in the new portfolio with Booster.

Speaker #1: So that's the reason also why we have even a strong seasonality in the new portfolio with booster.

Speaker #7: Okay, thank you. And very last question: I haven't really understood the transfer within the Wilmington site. We just said the first one will be done this year.

Daniel Jelovcan: Okay. Thank you. And very last question. I have not really understood the transfer within the Wilmington site, which you said the first one will be done this year. So what is transferred within a site?

Speaker #7: So, what is transferred within a site?

Marcel Imwinkelried: Well, good question, Daniel. Also that you understand that if you are transferring a product and especially within one site, then from the regulatory point of view, this is the fastest way what you can do. That is really fast track, and that is what we are doing. So we have different production buildings in Wilmington, and one of these particular production building is really fit for purpose for exclusive business, and this is exactly 8 cubic meters, which I have already mentioned. And to free up, we are internally at the Wilmington site, transferring one product from this facility for exclusive business to an older one. And then we have already capacity available for 2027. That is also the reason why I was mentioning, that we are generating the first revenues then 2027, what we are expecting. So this is fastest way.

Speaker #1: Good, good. Good question, Daniel. Also, that you understand that if you are transferring a product, and especially within one site, then from the regular regulatory point of view, this is the fastest way – what you can do.

Speaker #1: That's really fast track, and that's what we are doing. So we have different production buildings in Wilmington, and one of these particular production buildings is really fit for purpose for exclusive business.

Speaker #1: And this is exactly 80 cubic meters, which I have already mentioned. And to free up, we are internally, at the Wilmington site, transferring one product from this facility, for exclusive business, to an older one.

Speaker #1: And then we already have capacity available for 2027. That's also the reason why I was mentioning that we are generating the first revenues then, in 2027, which is what we are expecting.

Speaker #1: So this is the fastest way. The second wave will be then also that we are doing consolidation together with Bensville. We are also filling further at Bensville as well, which will help a lot with the scale-up effect there.

Marcel Imwinkelried: Second way will be then also that we are doing consolidation together with Pennsville. That we are also filling further Bentzwil as well, which will help a lot to the scale-up effect there and to free up then the additional cubic meters in Wilmington to bring in additional business as outlined.

Speaker #1: And to free up, then, the additional cubic meters in Wilmington, as outlined.

Speaker #7: Okay, thank you very much, and further good success. Thanks.

Daniel Jelovcan: Okay. Thank you very much and further good success. Thanks.

Speaker #1: Thank you Daniel.

Marcel Imwinkelried: Thank you, Daniel.

Speaker #4: Thank you.

Speaker #2: Thank you, Daniel. We also had questions from Stefan Wolf from Odo and from Charles Weston from RBC. Thank you so much for submitting these questions.

Tania Micki: Thank you.

Marcel Imwinkelried: Thank you, Daniel. We also had questions from Stefan Wolf from Udo and from Charles Weston from RBC. Thank you so much for submitting these questions. In the meantime, we have, I think, answered them already. There is one more question from Rolf Arpagaus from AWP, and he is asking about the trade agreement between Switzerland and China. In the future, Swiss companies no longer need to pay tariffs when exporting products to China. Will that impact Siegfried in any way? It could be an opportunity. I was together also with some customers in China. As you know, we have a site in Nantong, and also the demand is much higher there as well. Interesting is the local-to-local setup, the regionalization is going on in US, we see the same pattern now in China. Also, there is much higher interest for local to local also in China.

Peter Freisler: Thank you, Daniel. We also had questions from Stefan Wolf from Udo and from Charles Weston from RBC. Thank you so much for submitting these questions. In the meantime, we have, I think, answered them already. There is one more question from Rolf Arpagaus from AWP, and he is asking about the trade agreement between Switzerland and China. In the future, Swiss companies no longer need to pay tariffs when exporting products to China. Will that impact Siegfried in any way?

Speaker #2: In the meantime, I think we have already answered them. There is one more question from Rolf Arpegas from AWP, and he's asking about the trade agreement between Switzerland and China.

Speaker #2: In the future, Swiss companies will no longer need to pay tariffs when exporting products to China. Will that impact Siegfried in any way?

Marcel Imwinkelried: It could be an opportunity. I was together also with some customers in China. As you know, we have a site in Nantong, and also the demand is much higher there as well. Interesting is the local-to-local setup, the regionalization is going on in US, we see the same pattern now in China. Also, there is much higher interest for local to local also in China.

Speaker #1: It could be an opportunity. And also, I was together with some customers in China. As you know, we have a site in Nantong.

Speaker #1: And also, the demand is much higher there as well. Interesting is the local-to-local setup; the regionalization that is going on in the US—we see the same pattern now in China.

Speaker #1: Also there is much higher interest for local to local also in China. That means not obviously just China Chinese companies but also European or US companies are looking also to have capacity available in China.

Marcel Imwinkelried: That means not obviously just Chinese companies, but also European or US companies are looking also to have capacity available in China. For us, that's an opportunity. Also, we're looking further how we can evolve also the business in China because the innovation is coming more and more from China. In the past, it was 40-40-20. 40% of the new innovation came from US, 40% in Europe, and 20% of China. That was five years ago. Nowadays, it's still 40-40-20, but this has changed. US has still 40% of the development activities. Now, this has changed between China and Europe. China is now also together with US at 40% innovative stuff, and Europe at 20. That's also what we are looking for to further expand in China as well. But we have capacity available, which we are now offering to the customers.

Speaker #1: So, for us, that's an opportunity. Also, we're looking further at how we can evolve the business in China, because innovation is coming more and more from China.

Speaker #1: In the past, it was 40/40/20. So, 40% of the new innovation came from the US, 40% from Europe, and 20% from China. That was five years ago.

Speaker #1: Nowadays, it's still 40/40/20, but this has changed. The US still has 40% of the development activities. Now, this has changed between China and Europe. China is now also, together with the US, at 40% of the innovative stuff.

Speaker #1: And Europe at 20. So that's also what we are looking for, to further expand in China as well. But we have capacity available, which we are now offering to the customers.

Speaker #1: But the trade agreement will even help us.

Marcel Imwinkelried: The trade agreement will even help us.

Speaker #2: Thank you, Marcel, and thank you, Rolf, for these questions. Now we are approaching the end of the Q&A. One more question from Tania Hansalik.

Peter Freisler: Thank you, Marcel, and thank you, Rolf, for this question. Now we are approaching the end of the Q&A. One more question from Tanya Hansalik. Hi, Tanya.

Speaker #2: Hi Tania.

Speaker #1: Hi Tania.

Marcel Imwinkelried: Hi, Tanya.

Speaker #4: Hi Tania.

Tania Micki: Hi, Tania.

Speaker #3: Hi, good morning. Can you hear me?

Tanya Hansalik: Hi. Good morning. Can you hear me?

Speaker #1: Yes. We do.

Marcel Imwinkelried: Yes, we do.

Speaker #3: Okay, great. Yeah, just a couple more questions—most of them have been answered. So, on the cash flows: you provided some guidance, but maybe can you give an indication of the net working capital, if you expect a reversal in the second half, and when can we expect free cash flow to be positive?

Peter Freisler: Perfect.

Tanya Hansalik: Okay, great. Yeah, just a couple more questions. Most of them have been answered. So on the cash flows, you provided some guidance, but maybe can you give an indication of the networking capital, if you expect a reversal in the H2, and when can we expect free cash flow to be positive?

Speaker #4: Well, free cash flow was positive already in H1, right, Daniel? But let me come back to you on this one, because I'm still working on the cash projection.

Tania Micki: Well, free cash flow was positive already in H1, Tania. Let me come back to you on this one because I am still working on the cash projection. As I said before, I have full focus on cash generation. For me, it is one of the most important KPIs. I would rather come back to you with my thoughts on this. For sure, it is the conversion of inventory. For sure, Marcel said, less CapEx, more cost discipline around that. That is what we are looking at.

Speaker #4: And as I said before, I have full focus on cash generation. For me, it's one of the most important KPIs. But I'd rather come back to you with my thoughts on this.

Speaker #4: But for sure, it’s the conversion of inventory. For sure, as Marcel said, less capex and more cost discipline around that. So that’s what we are looking at.

Speaker #1: So, in a nutshell, long story short, we are looking forward to going to the 1,000 with the inventory. This will be happening. One example was just that Tasmanian site.

Marcel Imwinkelried: In a nutshell, long story short, we are looking forward to go to the south with the inventory. This will be happening. One example was just the Tasmanian site, but also CapEx-wise, we had in the last years quite some investments, mid-teens, low-teens, and so on to build up the capacity. Now really happy to have the capacity for the next future growth phase. Also we are coming now towards 10%, which also helps us then at the free cash flow. That is what we are looking for. More to come, we will share with you.

Speaker #1: But also, capex-wise, we had in the last years quite some investments—mid-teens, low-teens, and so on—to build up the capacity. Now, really happy to have the capacity for the next future growth phase.

Speaker #1: So, we are also now coming towards 10%, which will also help us with the free cash flow. That's what we are looking for.

Speaker #1: More to come; we will share it with you.

Speaker #3: Thank you very much. That's it from my side.

Tanya Hansalik: Thank you very much. That is it from my side.

Speaker #2: Well, thank you so much, Tania, and also thank you to all the others who have asked questions and participated. We're looking forward to meeting most of you again in February.

Peter Freisler: Well, thank you so much, Tania, and also thank you to all the others who have asked questions and participated. We are looking forward to meet most of you again in February when we will announce our full year results. With that, this webcast is closed. Thank you so much and have a nice day.

Speaker #2: We will announce our full-year results then. With that, this webcast is closed. Thank you so much, and have a nice day.

Speaker #1: Have a great weekend and all the best. Thank you.

Marcel Imwinkelried: Have a great weekend, and all the best. Thank you.

Tania Micki: Thank you. Bye.

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Q2 2026 Siegfried Holding AG Earnings Call

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