Q2 2026 TKH Group NV Earnings Call

August 11, 2026

Speaker #1: Of the half-year results, also a warm welcome to everyone in the audience of the webcast. Before I go to the— I have to move this— to the presentation, I'd like to point out to the cautionary note regarding forward-looking statements.

Speaker #1: Yeah, we have a nice key messages, and we can start with the fact that we delivered strong results, strong set of results, both in the half-year and especially in Q2.

Speaker #1: With an organic growth of 18% in turnover and 67.5% in result. What we see is that the vision technologies performed very well, and the electrification performed very well.

Speaker #1: Underlying performance is related to high market demand in vision technology. What we saw in automated machinery is that we are still impacted by a lower order intake, and that has mainly to do with geopolitical circumstances.

Speaker #1: And led to— that led to postponement of orders. I have to mention that we have a very good pipeline of orders and we are looking forward that these orders are coming in.

Speaker #1: A moment in vision technology, what we saw in automated machinery, is that we are still impacted by a lower order intake, and that has mainly to do with geopolitical circumstances, which led to postponement of orders.

Alexander van der Lof: in Vision Technology. What we saw in Automated Machinery is that we are still impacted with a lower order intake, and that has mainly to do with geopolitical circumstances, and that led to postponement of orders. I have to mention that we have a very good pipeline of orders, and we are looking forward that these orders are coming in the coming quarters. What we saw is that within Electrification, we had an especially good performance in the Eemshaven. Strong improvement in output and also the yield improvements. But also in onshore energy, we saw that there was a very good performance, very high growth rate due to the fact that we have a very good order book there, and also that the installation of the projects of the cable is running at a much more smooth trajectory. The separation process is well on track.

Speaker #1: In the coming quarters. What we saw is that within electrification we had an especially good performance in the Eemshaven. Strong improvement in output and also the yield improvements.

Speaker #1: I have to mention that we have a very good pipeline of orders, and we are looking forward to these orders coming in over the coming quarters.

Speaker #1: But also in onshore energy we saw that there was a very good performance, very high growth rate, due to the fact that we have a very good order book there.

Speaker #1: What we saw is that within electrification, we had an especially good performance in the Eemshaven, strong improvement in output, and also yield improvements.

Speaker #1: And also that the installation of the projects of the cable is running at a much more smooth trajectory. The separation process is well on track.

Speaker #1: But also in onshore energy, we saw that there was a very good performance, a very high growth rate, due to the fact that we have a very good order book there.

Speaker #1: Important strategic development within the TKH group, of course, the separation of the automation and the activities. We have come in with a new segmentation to address the real— the pure electrification activities, and then the other activities within electrification.

Speaker #1: And also, the installation of the cable projects is running on a much smoother trajectory. The separation process is well on track.

Alexander van der Lof: Important strategic development within the TKH Group, of course, the separation of the automation and the electrification activities. We have come in with a new segmentation to address the pure electrification activities and then the other activities within electrification. I believe that helps the transparency and information stream to make the right analysis of our business. What we also did is that we upgraded, or replaced the forecast for Electrification into a medium-term guidance. In that medium-term guidance, we upgraded the organic growth, and that has mainly to do with the fact that we see a better performance, higher demand in the onshore electrification activities. I go in detail now to the H1 results, Q2. Especially important to mention, besides all the growth rates here, is the order intake. I believe a very good development of the order intake, more than EUR 500 million.

Speaker #1: An important strategic development within the TKH Group is, of course, the separation of the automation and the electrification activities. We have come in with a new segmentation to address the real—the pure—electrification activities, and then the other activities within electrification. I believe that helps the transparency and information stream to make the right analysis of our business.

Speaker #1: I believe that's a good helps the transparency and information stream to make the right analysis of our business. What we also did is that we upgraded the— or replaced the forecast for electrification into a medium-term guidance, and in that medium-term guidance we upgraded the organic growth, and that has mainly to do with the fact that we see a better performance, higher demand in the onshore electrification activities.

Speaker #1: What we also did is that we upgraded—or replaced—the forecast for electrification into a medium-term guidance. In that medium-term guidance, we upgraded the organic growth, and that has mainly to do with the fact that we see a better performance and higher demand in the onshore electrification activities.

Speaker #1: I go in detail now to the half-year results. Q2, especially important to mention besides all the growth rates here, is the order intake. I believe a very good development of the order intake.

Speaker #1: More than 500 million and we have to take into account that the order intake in the automated machinery division was really low. So when that comes back, I believe we are really performing really well.

Speaker #1: I go in detail now to the half-year results, Q2, especially important to mention besides all the growth rates here, is the order intake. I believe a very good development of the order intake.

Speaker #1: And what is also good to see that not only the comparison to words 2025 showed very nice growth figures, but also the comparison to Q1 26 showed a very good performance.

Speaker #1: More than 500 million—and we have to take into account that the order intake in the Automated Machinery division was really low. So, when that comes back, I believe we are really performing really well.

Alexander van der Lof: We have to take into account that the order intake in the Automated Machinery division was really low. So when that comes back, I believe we are really performing really well. What is also good to see that not only the comparison towards 2025 showed very nice growth figures, but also the comparison to Q1 2026 showed a very good performance. Then the H1 performance. I already mentioned that we are quite happy with a 40% organic growth. Very nice development of the EBITDA, +43.5%. We have a kind of stable added value, and a quite high added value, and I come back later to that, especially when we look into the separate divisions. What is important to mention here is the innovation rate. It is still a quite high innovation rate.

Speaker #1: Yeah, then the half-year performance. I already mentioned that we are quite happy with a 40% organic growth. Very nice development of the EBITDA plus 43.5%.

Speaker #1: And what is also good to see is that not only did the comparison to 2025 show very nice growth figures, but also the comparison to Q1 '26 showed a very good performance.

Speaker #1: We have a kind of stable added value, and a quite high added value. And I come back later to that, especially when we look into the separate divisions.

Speaker #1: Yeah, regarding the half-year performance, I already mentioned that we are quite happy with 40% organic growth. It’s a very nice development of the EBITDA, up 43.5%.

Speaker #1: What is important to mention here is the innovation rate. It's still a quite high innovation rate. We have seen years where we have been above 20%, but taking into account the very high organic growth, and we still keep up with an innovation rate of above 16%, I believe we're doing a quite good job.

Speaker #1: We have a kind of stable added value, and a quite high added value, and I will come back to that later, especially when we look into the separate divisions.

Speaker #1: What is important to mention here is the innovation rate; it's still quite a high innovation rate. We have seen years where we have been above 20%, but taking into account the very high organic growth, and that we still keep up with an innovation rate of above 16%, I believe we're doing a quite good job.

Speaker #1: And to remember you, that the innovation rate is a really growth engine to gain market share, and I believe we are doing a quite good job there in several areas where we have seen that the market share increased.

Alexander van der Lof: We have seen years where we have been above 20%, but taking into account the very high organic growth, and we still keep up with an innovation rate of above 16%, I believe we are doing a quite good job. To remember you that the innovation rate is a really growth engine to gain market share, and I believe we are doing a quite good job there in several areas where we have seen that the market share increased. Also important to mention here is the award we got from EcoVadis. We are, with VMI, in the top 1% of companies in respect of the sustainability rating. Very important building stone for TKH in addressing our market and desires of our customers to be a very sustainable company.

Speaker #1: Also important to mention here is the award we get— we got from EcoVadis. We are with VMI in the top 1% of companies in respect of the sustainability rating.

Speaker #1: And to remind you, the innovation rate is really a growth engine to gain market share, and I believe we are doing quite a good job there in several areas where we have seen market share increase.

Speaker #1: Very important building stone for TKH in addressing our market. And designers of our customers to be very sustainable company. But not only sustainable as a company, but also especially sustainable with our technologies.

Speaker #1: Also important to mention here is the award we got from EcoVadis. We are, with VMI, in the top 1% of companies with respect to the sustainability rating.

Speaker #1: That can help our customers to improve their sustainability performance. The separation activities are on track. And yeah, we made good steps, especially with the preparation for the EGM to get shareholder approval for the proposed separation.

Speaker #1: A very important building stone for TKH in addressing our market, and for the designers of our customers to be a very sustainable company. But not only sustainable as a company, but also, especially, sustainable with our technologies.

Alexander van der Lof: But not only sustainable as a company, but also especially sustainable with our technologies that can help our customers to improve their sustainability performance. The separation activities are on track. We made good steps, especially with the preparation for the EGM, to get shareholder approval for the proposed separation. We are doing that on a voluntary basis. We are not yet meeting the criteria that it is an obligation. But we consider the views and support of our shareholders as very important for the separation process. I move into the different divisions. I would like to mention here, with the Vision Technology, especially the high added value. We continue to perform on a very high added value in this activity, which again proves the technology leadership we have here, and in that respect, the performance and rewards we get from our customers to get a good margin.

Speaker #1: That can help our customers improve their sustainability performance. The separation activities are on track, and we've made good progress, especially with the preparation for the EGM to get shareholder approval for the proposed separation.

Speaker #1: We are doing that on a voluntary basis. We are not yet meeting the criteria that it's an obligation. But we consider the views and support of our shareholders as very important for the separation process.

Speaker #1: I move into the different divisions. I would like to mention here with the vision technologies, especially the high added value. We continue to perform on a very high added value in this activity, which again proves the technology leadership we have here and in that respect the performance and rewards we get from our customers to get a good margin.

Speaker #1: We are doing that on a voluntary basis; we are not yet meeting the criteria that make it an obligation. But we consider the views and support of our shareholders as very important for the separation process.

Speaker #1: I move into the different divisions. I would like to mention here, with the vision technologies, especially the high added value. We continue to perform at a very high added value in this activity, which again proves the technology leadership we have here, and in that respect, the performance and rewards we get from our customers allow us to achieve a good margin.

Speaker #1: And that translated now in the first half year in a return on sales of more than 20%. Very healthy activity, especially also if we look at the order book, which increased substantially.

Speaker #1: And that means also that for the second half year we are positive in respect of the expectations and the strong order book is a good supporter.

Speaker #1: And that translated now in the first half year into a return on sales of more than 20%. Very healthy activity, especially also if we look at the order book, which increased substantially. That means also that for the second half year we are positive in respect of the expectations, and the strong order book is a good supporter.

Alexander van der Lof: And that translated now in the H1 in a return on sales of more than 20%. Very healthy activity, especially if we look at the order book, which increased substantially. That means also that for the H2, we are positive in respect of the expectations, and the strong order book is a good support there. Automated Machinery, I believe is still a very good performance. We saw the turnover coming down was not a surprise based on the order intake, which has been running at a lower pace in the last three, four quarters. As I mentioned before, we see a very good order project pipeline, but postponements by many of our customers. We can come back later if you have more questions about that. But the return on sales still at a good level of 16%.

Speaker #1: Automated machinery, I believe still a very good performance. We saw the turnover coming down. It was not a surprise. Based on the order intake, which has been at running at a lower pace in the last 3, 4 quarters.

Speaker #1: As I mentioned before, we see a very good order project pipeline. But postponements by many of our customers. We can come back later if you have more questions about that.

Speaker #1: Automated machinery, I believe, still shows a very good performance. We saw the turnover coming down, which was not a surprise, based on the order intake, which has been running at a lower pace in the last three to four quarters.

Speaker #1: But the return on sales still at a good level of 16%. It is a cyclical activity, but keeping up the EBIT margin, the return on sales, at 16%, I believe is a very good job.

Speaker #1: As I mentioned before, we see a very good order project pipeline. But with postponements by many of our customers, we can come back later if you have more questions about that.

Speaker #1: We see here, of course, that the order book came down substantially. And we need in that respect also additional orders to get our performance also in relation to 2027.

Speaker #1: But the return on sales is still at a good level of 16%. It is a cyclical activity, but keeping up the EBIT margin and the return on sales at 16%, I believe, is a very good job.

Alexander van der Lof: It is a cyclical activity, but keeping up the EBIT margin, the return on sales at 16%, I believe, is a very good job. We see here, of course, that the order book came down substantially. We need, in that respect, also additional orders to get our performance also in relation to 2027. What is very good, we did not lose any market share. So that is, I believe, a key message here, and that the long-term drivers for the high-end equipment that we have in our portfolio, the need for greater production efficiency, increased sustainability, and especially also the higher levels of automation are really positioning ourselves at the key trends and the technology advantages that we have. Electrification, a very nice step up in the return on sales.

Speaker #1: What is very good, we didn't lose any market share. So that is, I believe, a key message here. And that the long-term drivers for the high-end equipment that we have in our portfolio, the need for greater production efficiency, increased sustainability and especially also the higher levels of automation are really positioning ourselves at the key trends and the technology advantages that we have.

Speaker #1: We see here, of course, that the order book came down substantially. And, in that respect, we also need additional orders to get our performance in line with 2027.

Speaker #1: What is very good is that we didn't lose any market share. So, that is, I believe, a key message here. And the long-term drivers for the high-end equipment that we have in our portfolio—the need for greater production efficiency, increased sustainability, and especially the higher levels of automation—are really positioning ourselves at the key trends and leveraging the technology advantages that we have.

Speaker #1: Electrification, a very nice step up in the return on sales. We are reporting now, especially also the EBITDA margin, which is, let's say, common practice in the cable industry.

Speaker #1: With our peers, there we see a very nice EBITDA margin already of 12.6%. With respect to the medium-term guidance of 19%, there are still headroom for growth.

Speaker #1: Electrification—a very nice step up in the return on sales. We are reporting now, especially also the EBITDA margin, which is, let's say, common practice in the cable industry.

Alexander van der Lof: We are reporting now especially also the EBITDA margin, which is, let us say, common practice in the cable industry with our peers. There we see a very nice EBITDA margin already of 12.6%. With respect to the medium-term guidance of 19%, there is still headroom for growth, and that will especially happen through the further utilization of the capacity that we have in our hands. What we do also for the first time is split up the turnover for the three areas within the Electrification activities. Again, this is the pure Electrification activities consisting of four companies in the TKH Group. Very substantial growth within the offshore energy, which confirms the higher utilization rates, good improvements of the yield in the factories. We solved the majority of the issues. We did several upgrades, and again, that was mainly fine-tuning of the technology to get where we wanted to be.

Speaker #1: And that will especially happen through the further utilization of the capacity that we have in our hands. What we do also for the first time is split up the turnover.

Speaker #1: With our peers, we see a very nice EBITDA margin already of 12.6%. With respect to the medium-term guidance of 19%, there is still room for growth, and that will especially happen through the further utilization of the capacity that we have in our hands.

Speaker #1: For the three areas within the electrification activities. And again, this is the pure electrification activities consisting of four companies in the TKH group. Very substantial growth within the offshore energy.

Speaker #1: Which confirms the higher utilization. Rate good improvements of the yield in the factories. We solved the majority of the issues. We did several upgrades.

Speaker #1: What we do also, for the first time, is split up the turnover for the three areas within the electrification activities. And again, this is the pure electrification activities, consisting of four companies in the TKH Group.

Speaker #1: And again, that was mainly fine-tuning of the technology to get where we wanted to be. And yeah, again, the outlook is also quite positive for the offshore wind.

Speaker #1: Very substantial growth within offshore energy, which confirms the higher utilization rate. Good improvements of the yield in the factories. We solved the majority of the issues.

Speaker #1: With about 90 to 10, we are participating in. With a total demand of more than 14,000 kilometers. Within onshore energy, it is important to mention the 1.4 million framework agreements that we have signed.

Speaker #1: We did several upgrades, and again, that was mainly fine-tuning of the technology to get to where we wanted to be. And yeah, again, the outlook is also quite positive for offshore wind.

Alexander van der Lof: The outlook is also quite positive for the offshore wind. With about 92 tenders we are participating in with a total demand of more than 14,000 kilometer. Within onshore energy, it is important to mention the EUR 1.4 million framework agreements that we have signed. We cannot put that into the order book. The order book is a little bit more than EUR 500 million, but it does not include, of course, the framework agreements. But it gives you a good outlook, a good fundament to value, let's say, what the potential is of the onshore business also for the future. Specialty cables did a quite good job. The German market was really affected with much lower investment levels in the capital goods market. But they still were able to increase the turnover with 2%.

Speaker #1: We cannot put that into the order book. So the order book is 500, a little bit more than 500 million. But it does not include, of course, the framework agreements.

Speaker #1: With about 90 to 10, we are participating in—with a total demand of more than 14,000 kilometers. Within onshore energy, it is important to mention the €1.4 million framework agreements that we have signed.

Speaker #1: And but it gives you a good outlook, a good fundament to value, let's say, what the potential is of the onshore business also for the future.

Speaker #1: We cannot put that into the order book. So the order book is a little bit more than €500 million, but it does not include, of course, the framework agreements.

Speaker #1: Specialty cables, did a quite good job. The German market was really affected with much lower investment levels in the capital good market. But they still were able to increase the turnover with 2%.

Speaker #1: But it gives you a good outlook, a good foundation to value, let's say, what the potential is of the onshore business also for the future.

Speaker #1: And yeah, with respect to the outlook, we see that the improved operational performance recorded during the first quarters. Are of 26, are expected to continue in the second half of 2026.

Speaker #1: Specialty cables did quite a good job. The German market was really affected, with much lower investment levels in the capital goods market. But they were still able to increase the turnover by 2%.

Speaker #1: Then for the first time, we report the other business, which consists for about 75% of digitalization activities. We saw a significant growth, organic growth, of more than 15%.

Speaker #1: And yeah, with respect to the outlook, we see that the improved operational performance recorded during the first quarters of '26 are expected to continue in the second half of 2026.

Alexander van der Lof: With respect to the outlook, we see that the improved operational performance recorded during the first quarters of 2026 are expected to continue in the H2 2026. For the first time, we report the other business, which consists for about 75% of digitalization activities. We saw significant growth, organic growth of more than 15%, and a very big step up in the profitability, which is mainly being the contribution of our fiber production activities that are located in China with a very good performance of demand in the data center business and of course all the AI developments that you see where fiber optic is the product to do the data transmission. Also interesting to mention is the demand in the defense business. We saw also a big reduction, substantial reduction of the cost in the activities.

Speaker #1: And a very big step up in the profitability. Which is mainly being the contribution of our fiber production activities that are located in China with a very good performance of demand in the data center business and, of course, all the AI developments that you see where fiber optic is the product to do the data transmission.

Speaker #1: Then, for the first time, we report the Other Business, which consists of about 75% digitalization activities. We saw significant organic growth of more than 15%.

Speaker #1: And a very big step up in the profitability, which is mainly coming from the contribution of our fiber production activities that are located in China, with a very good performance of demand in the data center business, and of course, all the AI developments that you see, where fiber optic is the product to do the data transmission.

Speaker #1: And also interested to mention is the demand in the defense business. We saw also a big reduction substantial reduction of the cost in the activities last year.

Speaker #1: We closed down the activities of the fiber manufacturing in Holland. Moved the capacity to Poland. And that helped us to have a much lower cost base.

Speaker #1: And also interested to mention is the demand in the defense business. We saw also a big reduction substantial reduction of the cost in the activities last year.

Speaker #1: And that also supported the improvement of the return on sales. Yeah, the medium-term guidance I already mentioned. We see a small upgrade of the organic turnover.

Alexander van der Lof: Last year, we closed down the activities of the fiber manufacturing in Holland, moved the capacity to Poland, and that helped us to have a much lower cost base, and that also supported the improvement of the return on sales. The medium-term guidance I already mentioned, that we see a small upgrade of the organic turnover, and that is based mainly on the outlook for the medium voltage and high voltage cables for the onshore business. What is important to mention here is the last 12 months development of the turnover towards more than EUR 600 million turnover, which is a different reference base as we had when we communicated the targets at the Capital Markets Day in September last year. That was my last slide, and I'd like to hand over to Elling.

Speaker #1: We closed down the activities of the fiber manufacturing in Holland, moved the capacity to Poland, and that helped us to have a much lower cost base.

Speaker #1: And that is based mainly on the outlook for the medium voltage and high voltage cables for the onshore business. And what is important to mention here is the last 12 months.

Speaker #1: And that also supported the improvement of the return on sales. Yeah, the medium-term guidance I already mentioned. We see a small upgrade of the organic turnover, and that is based mainly on the outlook for the medium voltage and high voltage cables for the onshore business.

Speaker #1: Development of the turnover towards more than 600 million turnover. Which is different reference base as we had when we communicated the targets at the capital market day in September last year.

Speaker #1: What is important to mention here is the development of turnover over the last 12 months, which has exceeded €600 million. This is a different reference base than the one we used when we communicated the targets at the Capital Market Day in September last year.

Speaker #1: That was my last slide. And I'd like to hand over to Elling.

Speaker #2: Thank you, Alexander. Good morning, everyone. Indeed, my pleasure to spend a few minutes on the financials of the first half. First of all, the segmentation.

Speaker #1: That was my last slide, and I'd like to hand over to Elling.

Speaker #2: We discussed the segmentation in the capital markets day in September '25. Where, of course, the transition from the smart segments, which we had in the past, towards the automation and electrification segment was applicable.

Speaker #2: Thank you, Alexander. Good morning, everyone. Indeed, it is my pleasure to spend a few minutes on the financials of the first half. First of all, the segmentation.

Elling de Lange: Thank you, Alexander. Good morning, everyone. It's my pleasure to spend a few minutes on the financials of the H1. First of all, the segmentation. We discussed the segmentation at the Capital Markets Day in September 2025, where, of course, the transition from the smart segments which we had in the past towards the Automation and Electrification segment was applicable. Full year 2025 was still reported under the, what you see here on the left part of the sheet, the Smart Division, Smart Manufacturing, and Smart Connectivity segments. But as of this year, we will be reporting conform the right part of the sheet here, Automation, Electrification. Indeed, also listening to the feedback of some of you, we have grouped all the to-be-divested activities in a segment called Other.

Speaker #2: Full year '25 was still reported under the, what you see here on the left, part of the sheet. The smart division, smart manufacturing, and smart connectivity segments.

Speaker #2: We discussed the segmentation during the Capital Markets Day on September 25, where, of course, the transition from the Smart segment, which we had in the past, towards the Automation and Electrification segment was applicable.

Speaker #2: But as of this year, we will be reporting conform the right part of the sheet here, automation, electrification. And indeed, also listening to the feedback of some of you, we have grouped all the to be divested activities in the segment called other.

Speaker #2: Full-year '25 was still reported under what you see here on the left part of the sheet: the Smart Division, Smart Manufacturing, and Smart Connectivity segments.

Speaker #2: So therefore, you have a very clear performance indicator on how the business is running in the automation and electrification segments. Also, when you want to compare them to peers.

Speaker #2: But as of this year, we will be reporting, conform the right part of the sheet here, automation, electrification. And indeed, also listening to the feedback of some of you, we have grouped all the to-be-divested activities in the segment called 'Other.'

Speaker #2: It is also of course, we don't like that you have a lot of work to do with our reporting segment. But we facilitated as well.

Speaker #2: Therefore, you have a very clear performance indicator on how the business is running in the automation and electrification segments—also, when you want to compare them to peers.

Elling de Lange: So therefore, you have a very clear performance indicator on how the business is running in the Automation and Electrification segments. Also when you want to compare them to peers. Of course, we do not like that you have a lot of work to do with our reporting segments, but we facilitate it as well as of this morning. The last three years' KPIs and reporting have been made available on the website of TKH along the new segmentation, as you see here on the right side. So you can update your models accordingly. Basically, this step from the left to the right had to do with the fact that we grouped, as I mentioned earlier, under the segment Others, those elements which are considered to be divested. Digitalization was already in that basket, but as you see, some other smaller activities have been added into this segment as well.

Speaker #2: As of this morning, the last three years KPIs and reporting have been made available on the website of TKH. Along the new segmentation, as you see here on the right side.

Speaker #2: It is also, of course, that we don't like that you have a lot of work to do with our reporting segments, but we facilitated as well.

Speaker #2: So you can update your models accordingly. And basically, the step from the left to the right had to do with the fact that we grouped, as I mentioned earlier, under the segment others, those elements which are considered to be divested.

Speaker #2: As of this morning, the last three years' KPIs and reporting have been made available on the website of TKH, along with the new segmentation, as you see here on the right side.

Speaker #2: Digitalization was already in that basket. But as you see, the some other smaller activities have been entered into this segment as well. Then moving on to the top line.

Speaker #2: So you can update your models accordingly. And basically, the step from the left to the right had to do with the fact that we grouped, as I mentioned earlier, under the segment 'Others', those elements which are considered to be divested.

Speaker #2: And the developments in the geographical way. If you look at the sheet here, Europe we still remains roughly 60% of overall revenue. But you see, of course, the Netherlands creeping up a little bit.

Speaker #2: Digitalization was already in that basket, but as you see, some other smaller activities have been entered into this segment as well. Then, moving on to the top line and the developments in the geographical way.

Speaker #2: That's on the back of the high growth of the electrification business, which is very much centered in the Netherlands. And some countries around us.

Elling de Lange: Then moving on to the top line and the developments in a geographical way. If you look at the sheet here, Europe still remains roughly 60% of overall revenue. But you see, of course, the Netherlands creeping up a little bit. That is on the back of the high growth of the Electrification business, which is very much centered in the Netherlands and some countries around us. A slight increase in Asia. That is on the back of further activities of our Vision activities in Asia. North America, a substantial reduction as a share of the total revenue, and that is due to the fact that, especially on the tire-building machines, there was less revenue base in North America than it was in the H1 of 2025.

Speaker #2: Slight increase in Asia. That's on the back of further activities of our vision activities in Asia. And North America is substantial reduction, as a share of the total revenue.

Speaker #2: If you look at the sheet here, Europe still remains roughly 60% of overall revenue. But you see, of course, the Netherlands creeping up a little bit.

Speaker #2: And that's due to the fact that, especially on the tire building machines, there was less revenue base in North America than it was in the first half of '25.

Speaker #2: That's on the back of the high growth of the electrification business, which is very much centered in the Netherlands and some countries around us.

Speaker #2: A slight increase in Asia—that's on the back of further activities of our vision activities in Asia. In North America, there is a substantial reduction as a share of the total revenue.

Speaker #2: Looking at the P&L, quite a couple of things, of course, already passed in the presentation of Alexander. But I just want to highlight a few things.

Speaker #2: And that's due to the fact that, especially on the tire building machines, there was less revenue base in North America than there was in the first half of '25.

Speaker #2: If you look at the organic growth in the first half, 14% on top line. We had about 16 million euro or 1.9% of revenue in the category of divestments.

Speaker #2: Looking at the P&L, quite a couple of things, of course, already passed in the presentation of Alexander. But I just want to highlight a few things.

Speaker #2: Alphatronics and Devatron were divested. And they are also, of course, already in the adjusted figures in the other segment. Just to clarify that. And if you look at our added value, Alexander mentioned slightly lower than the first half of last year.

Elling de Lange: Looking at the P&L, quite a couple of things, of course, already passed in the presentation of Alexander, but I just want to highlight a few things. If you look at the organic growth in the H1, 14% on top line. We had about EUR 60 million or 1.9% of revenue in the category of divestments. Alphatronics and Dewetron were divested, and they are also, of course, already in the adjusted figures in the Other segment, just to clarify that. If you look at our added value, Alexander mentioned slightly lower than the H1 of last year. We have seen that Electrification has grown its added value. So that is an important step.

Speaker #2: If you look at the organic growth in the first half, it's 14% on the top line. We had about €16 million, or 1.9% of revenue, in the category of divestments.

Speaker #2: We have seen that electrification has grown. Its added value. So that is an important step. And as electrification has become a more important share in the whole, it means that it puts a little bit of pressure on the group added value, despite the fact that that segment, as I mentioned, saw an increase.

Speaker #2: Alphatronics and Devatron were divested, and they are also, of course, already in the adjusted figures in the other segment. Just to clarify that. And if you look at our added value, Alexander mentioned it was slightly lower than the first half of last year.

Speaker #2: Then if you look at the EBITDA, 43.5% increase for the first half. The organically. I think that's fairly well also operational costs are well under control.

Speaker #2: We have seen that electrification has grown its added value, so that is an important step. And, as electrification has become a more important share in the whole, it means that it puts a little bit of pressure on the group added value, despite the fact that that segment, as I mentioned, saw an increase.

Elling de Lange: And as Electrification has become a more important share in the whole, it means that it puts a little bit of pressure on the group added value, despite the fact that that segment, as I mentioned, saw an increase. Then if you look at the EBITDA, 43.5% increase for the H1 organically. I think that is fairly well. Also, operational costs are well under control. So from that point of view, a return on sales at EBITDA at 11.9% is a good level, I think. We had some one-off costs in the H1. As you are all aware, we are in full swing for the separation of Electrification. That also brings some one-off expenses in the H1, as well as some of the divestments which we did. In total, EUR 4.5 million.

Speaker #2: So from that point of view, a return on sales at EBITDA at 11.9% is a good level, I think. We had some one-off cost.

Speaker #2: Then, if you look at the EBITA, a 43.5% increase for the first half organically. I think that's fairly good, and also operational costs are well under control.

Speaker #2: In the first half, as you are all aware, we are in full swing for the separation of electrification. That also brings some one-off expenses in the first half.

Speaker #2: So, from that point of view, a return on sales at EBITA of 11.9% is a good level, I think. We had some one-off costs.

Speaker #2: As well as some of the divestments which we did. In total, 4.5 million. If you look at the line result of associates, the proceeds or the net effect of the divestment of Alphatronics, resulted a small 3 million in one-off gain.

Speaker #2: In the first half, as you are all aware, we are in full swing for the separation of electrification. That also brings some one-off expenses in the first half.

Speaker #2: And on the financial result, we had seen lower interest rates and a slightly lower average debt compared to the first half last year. That helped a little bit.

Speaker #2: As well as some of the divestments which we did—in total €4.5 million. If you look at the line 'Result of Associates', the proceeds, or the net effect, of the divestment of Alphatronics resulted in a small €3 million one-off gain.

Elling de Lange: If you look at the line result of associates on the proceeds or the net effect of the divestment of Alphatronics resulted a small EUR 3 million in one-off gain. On the financial results, we had seen lower interest rates and a slightly lower average debt compared to H1 last year. That helped a little bit. Foreign exchange effects basically caused a delta between H1 2025 and H1 2026. If you look at our tax rate, just over 24% as a normalized effective tax rate. Also something that when you look at your models for 2026, a little bit too in that same basket, we will probably end. On the balance sheet, of course, working capital is always a big topic. We have not been able, compared to the start of the year, to reduce the working capital as percentage of revenue.

Speaker #2: But foreign exchange effects basically caused the delta between first half '25 and first half '26. If you look at our tax rate, just over 24% as a normalized effective tax rate.

Speaker #2: And on the financial result, we have seen lower interest rates and a slightly lower average debt compared to the first half last year. That helped a little bit, but foreign exchange effects basically caused the delta between first half '25 and first half '26.

Speaker #2: Also something when you look at your models for 2026, a little bit to in that same basket, we will probably end. On the balance sheet, of course, working capital is always a big topic.

Speaker #2: If you look at our tax rate, just over 24% as a normalized effective tax rate. Also, something when you look at your models for '26, a little bit in that same basket, we will probably end.

Speaker #2: We have not been able compared to the start of the year to reduce the working capital as percentage of revenue. It's at 18.3%. And basically, in euros, it increased by just over 40 million.

Speaker #2: And that's in line with the actual growth, organically, of the group. Despite the fact that it's a slight increase, it has some I would say qualitative aspects to this as well.

Speaker #2: On the balance sheet, of course, working capital is always a big topic. We have not been able, compared to the start of the year, to reduce the working capital as a percentage of revenue.

Speaker #2: Because due to the fact that the order intake, especially in automated machineries, in VMI, has been low, it also means that the down payments have been substantially lower than what we have seen in prior periods.

Speaker #2: It's at 18.3%, and basically, in euros, it increased by just over €40 million. And that's in line with the actual growth organically of the group.

Elling de Lange: It is at 18.3%, and basically in euros it increased by just over EUR 40 million. That is in line with the actual growth organically of the group. Despite the fact that it is a slight increase, it has some, I would say, qualitative aspects to this as well. Because due to the fact that the order intake, especially in Automated Machinery in VMI, has been low, it also means that the down payments have been substantially lower than what we have seen in prior periods. That is causing, in the end, an increase as a net effect on one side, improvements within some of the working capital items, but the lack of the down payments in the end brings the working capital up compared to where we started the year.

Speaker #2: And that is causing, in the end, a increase as a net effect on one side, improvements within some of the working capital items. But the lack of the down payments in the end brings the working capital up compared to where we started the year.

Speaker #2: Despite the fact that it's a slight increase, it has some, I would say, qualitative aspects to this as well. Because, due to the fact that the order intake, especially in automated machineries and VMI, has been low, it also means that the down payments have been substantially lower than what we have seen in prior periods.

Speaker #2: And mind you, we of course always have a higher working capital at the middle of the year than at the end. And that's also what we are aiming for in '26.

Speaker #2: And that is causing, in the end, an increase as a net effect. On one side, there are improvements within some of the working capital items, but the lack of the down payments in the end brings the working capital up compared to where we started the year.

Speaker #2: Working capital leads to a further explanation on the net debt. Just over 500 million, according to the bank confidence or leverage rate, we are at 1.8.

Speaker #2: Substantially different than the 2.6 where we were last year. Of course, on the back of the improved results, this is a clear positive development.

Speaker #2: And mind you, we of course always have higher working capital in the middle of the year than at the end. And that's also what we are aiming for in '26.

Elling de Lange: Mind you, we of course always have a higher working capital at the middle of the year than at the end. That is also what we are aiming for in 2026. Working capital leads to a further explanation on the net debt. Just over EUR 500 million. According to the bank confidence or leverage rate, we are at 1.8. Substantially different than the 2.6 where we were last year. Of course, on the back of the improved results. This is a clear positive development. If you look at some of the main items here, cash flow from operations, you will see it in the next sheet in more detail, about EUR 95 million. I think also here the CapEx programs, both in tangibles and intangibles, close to EUR 30 million each in H1. We expect this to be slightly lower in H2.

Speaker #2: If you look at some of the main items here, cash flow from operations, you will see it in the next sheet in more detail.

Speaker #2: Working capital leads to a further explanation on the net debt, just over €500 million. According to the bank confidence, or leverage rate, we are at 1.8.

Speaker #2: About 95 million. But I think also here, the capex programs about in tangibles and intangibles, close to 30 million each in the first half.

Speaker #2: Substantially different than the 2.6 where we were last year. Of course, on the back of the improved results, this is a clear positive development.

Speaker #2: We expect this to be slightly lower in the second half. And of course, an important ticket as well has been the dividend payout in the second quarter.

Speaker #2: If you look at some of the main items here—cash flow from operations—you will see it in the next sheet in more detail.

Speaker #2: About $95 million. But I think also here, the CapEx programs—both in tangibles and intangibles—were close to $30 million each in the first half.

Speaker #2: This leads basically to also the free cash flow as presented here. Also here, on the back of the swing in the working capital, we see that H1 is greatly impacted by the change in working capital.

Speaker #2: We expect this to be slightly lower in the second half. And of course, an important topic as well has been the dividend payout in the second quarter.

Elling de Lange: Of course, an important ticket as well has been the dividend payout in Q2. This leads basically to also the free cash flow as presented here. Also here, on the back of the swing in the working capital, we see that H1 is greatly impacted by the change in working capital. In the end, we end up a conversion of 15% low. Also here we expect H2 to improve. On the right side, you see again an overview on how working capital ratio developed during the last couple of years. So far, the short explanation. The outlook, and again, I have to be a little bit different than the couple of years before where we had a much more extensive outlook, basically almost going at line item. We are not able to do that.

Speaker #2: In the end, we end up up a conversion of 15% low. But also here, we expect the second half to improve. And on the right side, you see again an overview how working capital ratio develops during the last couple of years.

Speaker #2: This basically also leads to the free cash flow as presented here. Also here, on the back of the swing in working capital, we see that H1 is greatly impacted by the change in working capital.

Speaker #2: So far, the short explanation. The outlook, and again, I have to be a little bit different than the couple of years before where we had a much more extensive outlook.

Speaker #2: In the end, we end up up a conversion of 15% low. But also here we expect the second half to improve. And on the right side, you see again an overview how working capital ratio develops during the last couple of years.

Speaker #2: Basically, almost going at line item. We are not able to do that. It's not that we don't want. But in the current process, we are in.

Speaker #2: We have a lot of restrictions in terms of guidance going forward as we are in a dual track process for the electrification activities. So basically, what we say here is that we reiterate our outlook as we communicated during the results of the first quarter.

Speaker #2: So far, that's the short explanation. Regarding the outlook, again, I have to be a little bit different than in the past couple of years, where we provided a much more extensive outlook.

Speaker #2: Basically, almost going at line item, we are not able to do that. It's not that we don't want to, but in the current process we are in, we have a lot of restrictions in terms of guidance going forward as we are in a dual track process for the electrification activities.

Speaker #2: And bearing unforeseen circumstances, we expect organic growth in both turnover and adjusted EBITDA in '26. That's short, I know. But that's all I can do for you at the moment.

Elling de Lange: It's not that we don't want, but in the current process we are in, we have a lot of restrictions in terms of guidance going forward as we are in a dual track process for the Electrification activities. Basically what we say here is that we reiterate our outlook as we communicated during the results of Q1. Barring unforeseen circumstances, we expect organic growth in both turnover and adjusted EBITDA in 2026. That's short, I know, but that's all I can do for you at the moment. I think so far the presentation part, we would like to open up for Q&A, please. Mark.

Speaker #2: So basically, what we say here is that we reiterate our outlook as we communicated during the results of the first quarter. Barring unforeseen circumstances, we expect organic growth in both turnover and adjusted EBITDA in 2026.

Speaker #2: I think so far, the presentation part, we would like to open up for Q&A. Please.

Speaker #2: That's short, I know, but that's all I can do for you at the moment. I think, so far, that's the presentation part. We would like to open up for Q&A, please.

Speaker #1: Thank you.

Speaker #2: Yep. Yep.

Speaker #1: Good morning. Michael Roeg, De Graaf Petercam. I have a couple of questions. The first one on the balance sheet. Assets for sale, was zero.

Speaker #1: Even though your presentation showed the other category with a couple of activities were disposal and the separation process may lead to a sale or an IPO or something else.

Speaker #1: Thank you.

Speaker #2: Yep.

Jacqueline Lenterman: Who's first?

Speaker #1: I was. Good morning. Michael Rouge, Degroof Petercam. I have a couple of questions. The first one on the balance sheet: assets for sale was zero.

Maik de Graaf: I was. Good morning, Maik de Graaf, De Graaf & Partner. I have a couple of questions. The first one on the balance sheet. Assets for sale was zero. Even their presentation showed the other category with a couple of activities for disposal, and the separation process may lead to a sale or an IPO or something else. I was a bit puzzled by that.

Mike Roeg: I was. Good morning, Maik de Graaf, De Graaf & Partner. I have a couple of questions. The first one on the balance sheet. Assets for sale was zero. Even their presentation showed the other category with a couple of activities for disposal, and the separation process may lead to a sale or an IPO or something else. I was a bit puzzled by that.

Speaker #1: So I was a bit puzzled by that.

Speaker #2: It's not that we are not working on this. We definitely are executing this. But according to IFRS, you have to pass certain hurdles in order to get to this point that it becomes part of the assets held for sale structures.

Speaker #1: Even though your presentation showed the 'Other' category with a couple of activities for disposal, and the separation process may lead to a sale, an IPO, or something else.

Speaker #2: And that's not yet meeting those requirements at this point in time.

Speaker #1: So, I was a bit puzzled by that.

Speaker #1: If I'm not mistaken, it should be likely that you sell something within 12 months for IFRS to put it in assets for sale. So that applies to other.

Speaker #2: It's not that we are not working on this. We definitely are executing this. But according to IFRS, you have to pass certain hurdles in order to get to the point that it becomes part of the assets held-for-sale structures.

Elling de Lange: It's not that we are not working on this. We definitely are executing this. According to IFRS, you have to pass certain hurdles in order to get to this point that it becomes part of the assets held for sale structures. That's not yet meeting those requirements at this point in time.

Speaker #2: That's not the only criteria. There are a couple of more. So it doesn't mean that we are not meeting the target in terms of timing.

Speaker #2: But there are some other criteria which make the overall evaluation like that.

Speaker #2: And that's not yet meeting those requirements at this point in time.

Speaker #1: Okay, clear. And then about the margin targets for the two activities. With automation, you are actually already within that range that you desire. Even though tire manufacturing is currently experiencing some softness, cyclical softness.

Speaker #1: If I'm not mistaken, it should be likely that you sell something within 12 months for IFRS to put it in assets for sale. So that applies to 'other.'

Maik de Graaf: If I am not mistaken, it should be likely that you sell something within 12 months for IFRS to put it in assets for sale. So that applies to other?

Mike Roeg: If I am not mistaken, it should be likely that you sell something within 12 months for IFRS to put it in assets for sale. So that applies to other?

Speaker #2: That's not the only criteria. There are a couple more. So, it doesn't mean that we're not meeting the target in terms of timing, but there are some other criteria which make the overall evaluation like that.

Elling de Lange: That is not the only criteria. There are a couple of more. So it does not mean that we are not meeting the target in terms of timing, but there are some other criteria which make the overall evaluation like that.

Speaker #1: So when that recovers, you are already above your target range. Why did you not raise it like you did with electrification?

Speaker #1: Okay, clear. And then, about the margin targets for the two activities: with automation, you are already within the range that you desire, even though tire manufacturing is currently experiencing some cyclical softness.

Maik de Graaf: Okay, clear. About the margin targets for the two activities. With automation, you are actually already within that range that you desire, even though tire manufacturing is currently experiencing some softness, cyclical softness. When that recovers, you are already above your target range. Why did you not raise it like you did with electrification?

Mike Roeg: Okay, clear. About the margin targets for the two activities. With automation, you are actually already within that range that you desire, even though tire manufacturing is currently experiencing some softness, cyclical softness. When that recovers, you are already above your target range. Why did you not raise it like you did with electrification?

Speaker #2: I think there are two points. Electrification is a clear moment in the sense that there is a different kind of trajectory on where let's say the next steps of electrification will go and the communication about it.

Speaker #1: So, when that recovers, you are already above your target range. Why did you not raise it like you did with electrification?

Speaker #2: It doesn't mean that automation is in a kind of dull area or whatever you want to call it. It's just the fact that where we currently are, we still have some time left before let's say the targets are being aimed for.

Speaker #2: I think there are two points. Electrification is a clear moment in the sense that there is a different kind of trajectory, and where, let's say, the next steps of electrification will go, and the communication about it.

Elling de Lange: I think there are two points. Electrification has a clear moment in the sense that there is a different kind of trajectory on where, let us say, the next steps of electrification will go and the communication about it. It does not mean that automation is in a dull area or whatever you want to call it. It is just the fact that where we currently are, we still have some time left before, let us say, the targets are being aimed for. In that period of time, of course, we will evaluate whether there is a necessary point to upgrade or, let us say, come in with a new target itself. It is not something we have foreseen right now.

Speaker #2: And in that period of time, of course, we will evaluate whether there is a necessary point to upgrade or let's say come in with a new target itself.

Speaker #2: It doesn't mean that automation is in a kind of dull area, or whatever you want to call it. It's just the fact that, where we currently are, we still have some time left before, let's say, the targets are being aimed for.

Speaker #2: It's not something we have foreseen right now.

Speaker #1: Once the company once electrification is separated, would it make sense for you to put separate targets on vision systems and tire manufacturing systems?

Speaker #2: And in that period of time, of course, we will evaluate whether there is a necessary point to upgrade or, let's say, come in with a new target itself.

Speaker #2: I think that's a very premature statement. Of course, once the separation takes place, for sure there will be communication about the road forward, the strategy, et cetera of the automation group.

Speaker #2: It's not something we have foreseen at this time.

Maik de Graaf: Once the Electrification is separated, would it make sense for you to put separate targets on Vision Technology and tire-building machines?

Mike Roeg: Once the Electrification is separated, would it make sense for you to put separate targets on Vision Technology and tire-building machines?

Speaker #1: Once the company, once Electrification, is separated, would it make sense for you to put separate targets on Vision Systems and Tire Manufacturing Systems?

Speaker #2: That can be a moment where these kind of topics will be discussed. But that's too premature at this point in time.

Speaker #1: Okay. And then my final question is on the electrification margin. It was 12.6. And the goal is to reach more than 19%. During the presentation, you mentioned that utilization will be one of the big drivers.

Speaker #2: I think that's a very premature statement. Of course, once the separation takes place, there will certainly be communication about the road forward, the strategy, et cetera, of the automation group.

Elling de Lange: I think that's a very premature statement. Of course, once the separation takes place, for sure there will be communication about the road forward, the strategy, et cetera, of the automation group. That can be a moment where these kind of topics will be discussed. That's too premature at this point in time.

Speaker #2: And there can be moments where these kinds of topics will be discussed, but that's too premature at this point in time.

Speaker #1: But I was also wondering, will further efficiency improvements be a big component of that improvement? Is there still a lot of benefits to get from that?

Speaker #1: Okay. And then my final question is on the electrification margin. It was 12.6%, and the goal is to reach more than 19%. During the presentation, you mentioned that utilization will be one of the big drivers.

Maik de Graaf: Okay. My final question is on the Electrification margin. It was 12.6%, and the goal is to reach more than 19%. During your presentation, you mentioned that utilization will be one of the big drivers. I was also wondering, will further efficiency improvements be a big component of that improvement? Is there still a lot of benefits to get from that?

Mike Roeg: Okay. My final question is on the Electrification margin. It was 12.6%, and the goal is to reach more than 19%. During your presentation, you mentioned that utilization will be one of the big drivers. I was also wondering, will further efficiency improvements be a big component of that improvement? Is there still a lot of benefits to get from that?

Speaker #2: Yes, I can confirm that. There are still improvements, especially related to productivity and we did some especially in that direction investments in the past few years.

Speaker #1: But I was also wondering, will further efficiency improvements be a big component of that improvement? Is there still a lot of benefit to be gained from that?

Speaker #2: And we are taking in the returns on these investments. And that helps, of course, to get to a different let's say cost conversion in relation to the turnover and that helps, of course, the bottom line percentage.

Speaker #2: Yes, I can confirm that. There are still improvements, especially related to productivity, and we did some, especially in that direction, investments in the past few years. We are taking in the returns on these investments, and that helps, of course, to get to a different, let's say, cost conversion in relation to the turnover, and that helps, of course, the bottom line percentage.

Alexander van der Lof: Yes, I can confirm that. There are still improvements, especially related to productivity. We did some, especially in that direction, investments in the past few years, and we are taking in the returns on these investments. That helps, of course, to get to a different, let's say, cost conversion in relation to the turnover. That helps, of course, the bottom line percentage.

Speaker #1: So if suppose that sales would remain flat in the next 12 months, then with efficiency improvements, there is already further margin upside.

Speaker #2: Yes.

Speaker #1: Okay. Clear. That's it. Thank you.

Speaker #3: Yep. Can I? Okay. Martijn and Drijver, Eben Emro. My first question is for Alexander. What prompted the CEO change? Can you elaborate a little bit on why you decided in conjunction obviously with the supervisory board to lead electrification?

Speaker #1: So, if we suppose that sales would remain flat in the next 12 months, then with efficiency improvements, there is already further margin upside.

Maik de Graaf: If you suppose that sales would remain flat in the next 12 months, then with efficiency improvements, there is already further margin upside?

Mike Roeg: If you suppose that sales would remain flat in the next 12 months, then with efficiency improvements, there is already further margin upside?

Speaker #2: Yes.

Alexander van der Lof: Yes.

Speaker #1: Okay.

Maik de Graaf: Okay.

Mike Roeg: Okay.

Speaker #2: Yes.

Alexander van der Lof: Yes.

Speaker #1: Clear. That's it. Thank you.

Maik de Graaf: Clear. That's it. Thank you.

Mike Roeg: Clear. That's it. Thank you.

Speaker #2: I believe that let's say looking also at my age, that the future for TKH Group is in automation. And I believe that there's a very good point to hand over that activity to a new leadership, bring also a fresh blood in that area.

Speaker #2: Yep.

Martijn van Dijke: Yep. Can I? Okay. Martijn in for ABN AMRO. My first question is for Alexander. What prompted the CEO change? Can you elaborate a little bit on why you decided, in conjunction obviously with the supervisory board, to lead Electrification?

Martijn den Drijver: Yep. Can I? Okay. Martijn in for ABN AMRO. My first question is for Alexander. What prompted the CEO change? Can you elaborate a little bit on why you decided, in conjunction obviously with the supervisory board, to lead Electrification?

Speaker #3: Good night.

Speaker #2: Okay.

Speaker #3: Martijn and I from ABN AMRO. My first question is for Alexander. What prompted the CEO change? Can you elaborate a little bit on why you decided, in conjunction obviously with the Supervisory Board, to lead electrification?

Speaker #2: And so I can focus myself completely on the transition, smooth transition of the separation of the electrification activities, which is a very important project.

Speaker #2: I believe that—let's say, looking also at my age—the future for TKH Group is in automation. And I believe that this is a very good point to hand over that activity to new leadership, to bring also fresh blood into that area, so I can focus myself completely on the transition, the smooth transition of the separation of the electrification activities, which is a very important project and which also requires full attention.

Alexander van der Lof: I believe that, let's say, looking also at my age, that the future for TKH Group is in Automation. I believe that there's a very good point to hand over that activity to a new leadership, bring also fresh blood in that area. I can focus myself completely on the smooth transition of the separation of the Electrification activities, which is a very important project, and which also requires full attention.

Speaker #2: And which also requires full attention.

Speaker #3: Just one follow-up. Does it have anything to do with the potential makeup of the acquirers of electrification strategic versus private equity mainly?

Speaker #2: No, that is nice that you say that. But that's purely speculation.

Speaker #3: We'll see. And then digitization is doing well. Electrification is doing well. So I'm assuming a sale. Let's hypothetically assume that it will be a sale for both units.

Speaker #3: Just one follow-up. Does it have anything to do with the potential makeup of the acquirers of electrification—strategic versus private equity mainly?

Martijn van Dijke: Just one follow-up. Does it have anything to do with the potential makeup of the acquirers of Electrification, strategic versus private equity mainly?

Martijn den Drijver: Just one follow-up. Does it have anything to do with the potential makeup of the acquirers of Electrification, strategic versus private equity mainly?

Speaker #2: No, that's nice that you say that, but it's purely speculation.

Speaker #3: The use of proceeds within the capital markets they presentation was allocated primarily to shareholder remuneration and a portion was allocated to continued M&A in automation.

Alexander van der Lof: Well, that is nice that you say that, but it is purely speculation.

Speaker #3: We'll see. And then digitization is doing well. Electrification is doing well. So we're—I'm assuming a sale. Let's hypothetically assume that it will be a sale for both units.

Martijn van Dijke: We will see. Digitalization is doing well, Electrification is doing well. So I am assuming a sale. Let us hypothetically assume that it will be a sale for both units. The use of proceeds within the Capital Markets Day presentation was allocated primarily to shareholder remuneration, and a portion was allocated to continued M&A in Automation. Now you have announced a new CEO. Will that allocation change, or will it remain as is?

Martijn den Drijver: We will see. Digitalization is doing well, Electrification is doing well. So I am assuming a sale. Let us hypothetically assume that it will be a sale for both units. The use of proceeds within the Capital Markets Day presentation was allocated primarily to shareholder remuneration, and a portion was allocated to continued M&A in Automation. Now you have announced a new CEO. Will that allocation change, or will it remain as is?

Speaker #3: Now you have announced a new CEO. Will that allocation change or will it remain as is?

Speaker #2: Maybe just to make a small correction. We have mentioned a certain category or priority of deploying proceeds when we look at the capital allocation.

Speaker #3: The use of proceeds within the capital markets day presentation was allocated primarily to shareholder remuneration, and a portion was allocated to continued M&A in automation.

Speaker #3: Now that you have announced a new CEO, will that allocation change, or will it remain as is?

Speaker #2: Organic growth is the first thing in automation. We also look for built and buy strategy. And then we have, of course, elements like share buyback dividends and that whole basket.

Elling de Lange: Maybe just to make a small correction. We have mentioned a certain category or priority of deploying proceeds when we look at the capital allocation. Organic growth is the first thing in Automation. We also look for a build and buy strategy. Then we have, of course, elements like share buyback dividends and that whole basket. We presented it slightly different, but I think that is important to highlight that. I think at the moment, this is the strategy which we have, this is the strategy we have communicated, this is the strategy we move on. I do not see much change in there.

Speaker #2: Maybe just to make a small correction. We have mentioned a certain category, or priority, of deploying proceeds when we look at the capital allocation.

Speaker #2: You presented it slightly different. But I think that's important to highlight that. And I think at the moment this is the strategy which we have.

Speaker #2: This is the strategy we have communicated. This is the strategy we move on. And I don't see much change in there.

Speaker #2: Organic growth is the first thing in automation. We also look for build-and-buy strategy. And then we have, of course, elements like share buybacks, dividends, and that whole basket.

Speaker #1: Okay. Because normally CapEx and dividend could easily be paid from your free cash flow anyway.

Speaker #2: You presented it slightly differently, but I think it's important to highlight that. And I think at the moment, this is the strategy that we have.

Speaker #2: I still keep to the set of priorities as a list we work with.

Speaker #3: I'll move on. On the AIMS haven, how many kilometers did you actually manufacture in the first half? And by extension, do you stand by that 600 kilometers for the full year and that EBITDA margin above 15% for offshore?

Speaker #2: This is the strategy we have communicated. This is the strategy we move on, and I don't see much change in there.

Speaker #1: Okay. Because normally, CapEx and dividends could easily be paid from your free cash flow anyway.

Martijn van Dijke: Okay, because normally, CapEx and dividend could easily be paid from your free cash flow anyway.

Alexander van der Lof: Okay, because normally, CapEx and dividend could easily be paid from your free cash flow anyway.

Speaker #2: I still keep to the set of priorities as a list we work with.

Speaker #2: No, as Elling already mentioned, we cannot be too specific on the let's say developments of the activities, especially not looking at forward. And we are meeting all the customer requirements.

Elling de Lange: I still keep to the set of priorities as a list we work with.

Speaker #1: I'll move on. On the AIMS haven, how many kilometers did you actually manufacture in the first half? And by extension, do you stand by that 600 kilometers for the full year and that EBITDA margin above 15% for offshore?

Martijn van Dijke: I will move on. On the Eemshaven, how many kilometers did you actually manufacture in the H1? By extension, do you stand by that 600 kilometers for the full year and that EBITDA margin above 15% for offshore?

Martijn den Drijver: I will move on. On the Eemshaven, how many kilometers did you actually manufacture in the H1? By extension, do you stand by that 600 kilometers for the full year and that EBITDA margin above 15% for offshore?

Speaker #2: And these customer requirements are close to the figure that you just mentioned.

Speaker #2: No, as Elling already mentioned, we cannot be too specific on, let's say, the developments of the activities, especially not looking forward. And we are meeting all the customer requirements, and these customer requirements are close to the figure that you just mentioned.

Alexander van der Lof: As Elling already mentioned, we cannot be too specific on the, let's say, developments of the activities, especially not looking at forward. We are meeting all the customer requirements, and these customer requirements are close to the figure that you just mentioned.

Speaker #3: Okay. I'll leave it for now. Thank you.

Speaker #1: Mark Verbeek, the idea. I'd like to get back to electrification. And also your new targets going forward. And if I'm correct, the base level for electrification is 525 million of 25 revenues.

Speaker #1: Okay.

Martijn van Dijke: Okay. I will leave it for now. Thank you.

Martijn den Drijver: Okay. I will leave it for now. Thank you.

Speaker #3: I'll leave it for now. Thank you.

Speaker #1: If I add 9%, you will need to achieve at least 680 million in '28. But if I simply double this year's revenue, you are already roughly at that level.

Speaker #1: Mart Verbeeck, the idea—I'd like to get back to electrification, and also your new targets going forward. And if I’m correct, the base level for electrification is €525 million of 2025 revenues.

Maarten Verbeek: Mart Verbeek, DGA. I would like to get back to Electrification and also your new targets going forward. If I am correct, the base level for Electrification is EUR 525 million of 2025 revenues. If I add 9%, you will need to achieve at least EUR 680 million in 2028. If I simply double this year's revenue, you are already roughly at that level. Are you very conservative? You mentioned already onshore energy will do much better, or are you very cautious about your offshore development going forward?

Speaker #1: So are you very conservative or and you mentioned already onshore energy will do much better. Or are you very cautious about your offshore development going forward?

Speaker #1: If I add 9%, you will need to achieve at least €680 million in '28. But if I simply double this year's revenue, you are already roughly at that level.

Speaker #2: Just to make clear, the reference point, the 9% is starting as of the 30th of June 26. So the reference is 604 million. Going forward, we have not specifically mentioned 2028.

Speaker #1: So are you very conservative, and you mentioned already that onshore energy will do much better. Or are you very cautious about your offshore development going forward?

Speaker #2: We have mentioned midterm.

Speaker #2: Just to make it clear, the reference point—the 9%—is starting as of June 30, 2026. So, the reference is €604 million. Going forward, we have not specifically mentioned 2028.

Elling de Lange: Just to make clear, the reference point, the 9% is starting as of 30 June 2026. The reference is EUR 604 million going forward. We have not specifically mentioned 2028. We have mentioned midterm.

Speaker #1: And what is midterm?

Speaker #2: The next couple of years.

Speaker #1: Okay. And then I'm a bit surprised about the current pipeline for the inter-array consisting of 92 projects and over 14,000 kilometers. Because a while ago you mentioned it was only between brackets 11,500 kilometers.

Speaker #2: We have mentioned midterm.

Speaker #1: And what is midterm?

Maarten Verbeek: What is midterm?

Speaker #2: The next couple of years.

Elling de Lange: The next couple of years.

Speaker #1: And 72 projects more or less. And the statement was always that is until 2030. Will I only see cancellations and postponements? So I'm a bit puzzled by tremendous upgrade in Outlook.

Speaker #1: Okay. And then I'm a bit surprised about the current pipeline for the inter-array, consisting of 92 projects and over 14,000 kilometers, because a while ago you mentioned it was only, between brackets, 11,500 kilometers.

Maarten Verbeek: Okay. I am a bit surprised about the current pipeline for the inter-array consisting of 92 projects and over 14,000 kilometers. A while ago you mentioned it was only, between brackets, 11,500 kilometers and 72 projects, more or less. The statement was always that is until 2030. I only see cancellations and postponements. I am a bit puzzled by tremendous upgrade and outlook, while the market is showing actually the opposite.

Speaker #1: Will the market is showing actually the opposite?

Speaker #2: Yeah, it is not anymore till 2030. I believe Jacqueline, it is 2032. That we are looking so that makes the reference base difference. But yeah, of course, it is a fantastic Outlook that we have.

Speaker #1: And 72 projects, more or less. And the statement was always that this is until 2030. Will I only see cancellations and postponements? So I'm a bit puzzled by the tremendous upgrade in outlook, whilst the market is actually showing the opposite.

Speaker #1: Okay. That's then clear. And lastly for the moment, you have upped the Outlook for electrification for revenue and your profitability. But you have not done so for your rowkey, which was between 18 and 23%.

Speaker #2: Yeah, it is not anymore till 2030. I believe, Jacqueline, it is 2032 that we are looking at, so that makes the reference base different. But yeah, of course, it is a fantastic outlook that we have.

Alexander van der Lof: Yeah. It is not anymore till 2030. I believe, Jacqueline, it is 2032 that we are looking. That makes the reference base different. Of course, it is a fantastic outlook that we have.

Speaker #1: What will your rowkey be within this new targets set of targets?

Speaker #1: Okay, that's then clear. And lastly, for the moment, you have upped the outlook for electrification for revenue and your profitability, but you have not done so for your RoCE, which was between 18% and 23%.

Maarten Verbeek: Okay. That is then clear. Lastly, for the moment, you have upped the outlook for Electrification for revenue and your profitability, but you have not done so for your ROCE, which was between 18% and 23%. What will your ROCE be within this new set of targets?

Speaker #2: Yeah. That's a good question. I don't want to let's say shy away from answering this. But the ROC target is a little bit dependent on the final transaction structure and the actual call it opening balance sheet, which electrification will start off with.

Speaker #1: What will your row key be within this new set of targets?

Speaker #2: Yeah, that's a good question. I don't want to, let's say, shy away from answering this. But the ROC target is a little bit dependent on the final transaction structure and the actual, call it, opening balance sheet, which electrification will start off with.

Elling de Lange: Yeah. That is a good question. I do not want to, let us say, shy away from answering this. But the ROCE target is a little bit dependent on the final transaction structure and the actual, call it, opening balance sheet, which Electrification will start off with. Not having, let us say, that level of flexibility where it has been growing in the target right now, this might be something we will address once the separation has been completed.

Speaker #2: And not having let's say that level of flexibility where this may go in a target right now, this might be something we will address once the separation has been completed.

Speaker #1: But in September last year, you had a view about that.

Speaker #2: Correct.

Speaker #1: So what has changed in the meanwhile?

Speaker #2: You can say the actual process gives a little bit more dynamics to this. And the fact that we basically take back the 28 target into a midterm target, also gives a little bit of new flavor to the whole topic.

Speaker #2: And not having, let's say, that level of flexibility where this may go in a target right now—this might be something we will address once the separation has been completed.

Speaker #1: But in September last year, you had a view about that.

Maarten Verbeek: In September last year, you had a view about that.

Speaker #2: And that's why we want to address it at the proper point in time. And that's once the transaction parameters have been clearly defined. And then use that as a base point rather than constantly going back to assumptions which are no longer applicable going forward.

Speaker #2: Correct.

Elling de Lange: Correct.

Speaker #1: So, what has changed in the meanwhile?

Maarten Verbeek: What has changed in the meanwhile?

Speaker #2: You could say the actual process gives a little bit more dynamic to this. And the fact that we basically take back the 28 target into a midterm target also gives a little bit of new flavor to the whole topic.

Elling de Lange: You can say the actual process gives a little bit more dynamics to this, and the fact that we basically take back the 2028 target into a midterm target also gives a little bit of new flavor to the whole topic, and that is why we want to address it at the proper point in time. That is once the transaction parameters have been clearly defined, and then use that as a base point rather than constantly going back to assumptions which are no longer applicable going forward.

Speaker #3: Tijs Hollestelle, ING. Also a couple of questions. I do indeed appreciate the breakdown of the numbers. It really helpful. Especially indeed the revenue categories in the electrification business.

Speaker #2: And that's why we want to address it at the proper point in time, and that's once the transaction parameters have been clearly defined. Then we use that as a base point, rather than constantly going back to assumptions which are no longer applicable going forward.

Speaker #3: So I had a question about the order book. It's 507 million. And I personally assume that most of that relates to offshore cable projects.

Thijs Olthof: Thijs Olthof, NN. Also a couple of questions. I do indeed appreciate the breakdown of the numbers, were really helpful. Especially, indeed, the revenue categories in the Electrification business. I had a question about the order book. It is EUR 507 million, and I personally assume that most of that relates to offshore cable projects, because in specialty cables, it is kind of short notice orders, I guess.

Tijs Hollestelle: Thijs Olthof, NN. Also a couple of questions. I do indeed appreciate the breakdown of the numbers, were really helpful. Especially, indeed, the revenue categories in the Electrification business. I had a question about the order book. It is EUR 507 million, and I personally assume that most of that relates to offshore cable projects, because in specialty cables, it is kind of short notice orders, I guess.

Speaker #1: Thijs Onderstellen, ING. Also, a couple of questions. I do indeed appreciate the breakdown of the numbers; it’s really helpful, especially the revenue categories in the electrification business.

Speaker #3: Because in specialty cables, it's kind of you have short notice orders, I guess.

Speaker #2: Well, short notice is not really. But it has a different dynamics. That's correct. But your assumption is right.

Speaker #1: So I had a question about the order book. It's €507 million, and I personally assume that most of that relates to offshore cable projects.

Speaker #3: Yeah. And then maybe in onshore cable, a few larger orders with basically the same dynamics. So you have a lot of visibility in offshore cable production in the order book.

Speaker #1: Because in specialty cables, you kind of have short-notice orders, I guess.

Speaker #2: That's correct.

Speaker #3: That's correct. In the past, I think you guided for about 170 million annual turnover in the subsea cable business. Yeah, looking at first half, you're going to exceed that this year.

Speaker #2: Well, it's not really short notice, but it does have a different dynamic—that's correct. But your assumption is right.

Elling de Lange: Well, short notice not really, but it has a different dynamic. That is correct. But your assumption is right.

Speaker #1: Yeah, and then maybe in onshore cable, a few larger orders with basically the same dynamics. So you have a lot of visibility in offshore cable production in the order book.

Thijs Olthof: Yeah. Maybe in onshore cable, a few larger orders, but basically the same dynamic. So you have a lot of visibility in offshore cable production in the order book.

Tijs Hollestelle: Yeah. Maybe in onshore cable, a few larger orders, but basically the same dynamic. So you have a lot of visibility in offshore cable production in the order book.

Speaker #3: By a mile. And additional upside, let's say into '27, if operationally everything is running, what kind of annual sales levels are you calculating with for offshore?

Elling de Lange: That is correct.

Speaker #1: That's correct. In the past, you, I think, guided for about €170 million annual turnover in the subsea cable business. Looking at the first half, you're going to exceed that this year.

Thijs Olthof: That is correct. In the past, I think you guided for about 170 million annual turnover in the subsea cable business. Looking at the H1, you are going to exceed that this year by a mile. What kind of annual sales levels are you calculating with for offshore, and additional upside into 2027, if operationally everything is running?

Tijs Hollestelle: That is correct. In the past, I think you guided for about 170 million annual turnover in the subsea cable business. Looking at the H1, you are going to exceed that this year by a mile. What kind of annual sales levels are you calculating with for offshore, and additional upside into 2027, if operationally everything is running?

Speaker #2: What we are calculating with is something which we are not able to disclose. Forward-looking statements, related to electrification in terms of what the second half or even '27 will be, we have restrictions as we are in the dual track process.

Speaker #1: By a mile. And additional upside—let's say into '27, if operationally everything is running, what kind of annual sales levels are you calculating with for offshore?

Speaker #2: So a sympathize with the question you have. But I'm not able to help you very much with that. But your assumption about order book is correct.

Elling de Lange: What we are calculating with is something which we are not able to disclose. Forward-looking statements related to Electrification in terms of what the H2 or even 2027 will be, we have restrictions as we are in the dual track process. So I sympathize with the question you have, but I am not able to help you very much with it. But your assumption about order book is correct, and I think also about, in itself, the production capacities, et cetera, that I can confirm, but not the specific outlook.

Speaker #2: What we are calculating with is something which we are not able to disclose. Forward-looking statements related to electrification in terms of what the second half or even '27 will be—we have restrictions, as we are in the dual-track process.

Speaker #2: And I think also about in itself, the production capacities, et cetera, that I can confirm. But not a specific outlook.

Speaker #3: Okay. Yeah. That's clear. And then in addition to what Martin was asking, at what stage of an offshore wind development does a cable manufacturer typically get the order?

Speaker #2: So, I sympathize with the question you have, but I'm not able to help you very much with that. But your assumption about the order book is correct.

Speaker #2: And I think also about, in itself, the production capacities, et cetera—that I can confirm, but not the specific outlook.

Speaker #2: That is about two years before the installation will be taking place.

Speaker #1: Okay, yeah, that's clear. And then, in addition to what Martin was asking, at what stage of an offshore wind development does a cable manufacturer typically get the order?

Thijs Olthof: Okay, that is clear. In addition to what Martijn was asking, at what stage of an offshore wind development does a cable manufacturer typically get the order?

Tijs Hollestelle: Okay, that is clear. In addition to what Martijn was asking, at what stage of an offshore wind development does a cable manufacturer typically get the order?

Speaker #3: The installation of the foundations?

Speaker #2: Yeah.

Speaker #3: Two years before that? You get the order and then when you start producing?

Speaker #2: No, yeah, two years before. So the order can be even longer before. That can go up to three, four years. But we start and have the flexibility to start the manufacturing in most cases two years before the installation will be executed.

Speaker #2: That is about two years before the installation will be taking place.

Alexander van der Lof: That is about two years before the installation will be taking place.

Speaker #1: The installation of the foundations?

Thijs Olthof: The installation of the foundations?

Tijs Hollestelle: The installation of the foundations?

Speaker #2: Yeah.

Alexander van der Lof: Yeah.

Speaker #1: Two years before that?

Thijs Olthof: Two years before that.

Tijs Hollestelle: Two years before that.

Alexander van der Lof: Yeah

Speaker #2: Yeah.

Speaker #1: You get the order, and then when do you start producing?

Thijs Olthof: You get the order, and then when you start producing?

Tijs Hollestelle: You get the order, and then when you start producing?

Speaker #3: Okay. That is helpful. It's a bit strange from the client perspective.

Speaker #2: No, yeah, two years before. So the order can be even longer before—that can go up to three or four years. But we start, and have the flexibility to start, the manufacturing in most cases two years before the installation will be executed.

Alexander van der Lof: Yeah, two years before. The order can be even longer before, that can go up to three, four years. But we start, and have the flexibility to start the manufacturing, in most cases, two years before the installation will be executed.

Speaker #2: Yeah, it is a important emission-critical part of the infrastructure. And so what we see in general that the customers like to see headroom in respect of meeting the obligations.

Speaker #2: And yeah, that is nice because we can also then play with the utilization of the plant by moving capacity forward or the other direction to get to the highest utilization and efficiency in the plant.

Speaker #1: Okay, that is helpful. It's a bit strange from the client's perspective.

Thijs Olthof: Okay. That is helpful. It is a bit strange from the client perspective.

Tijs Hollestelle: Okay. That is helpful. It is a bit strange from the client perspective.

Alexander van der Lof: Yeah, it is an important, mission-critical part of the infrastructure. What we see in general is that the customers like to have headroom in respect of meeting the obligations. That is nice because we can also then play with the utilization of the plant by moving capacity forward or the other direction to get to the highest utilization and efficiency in the plant.

Speaker #2: Yeah, it is an important emission-critical part of the infrastructure. And so what we see in general is that the customers like to see headroom with respect to meeting the obligations.

Speaker #3: Okay. Okay. That's very helpful. One final question. For Harm, what is kind of your worst-case scenario for the second half? Because indeed the order book levels are quite low.

Speaker #2: And yeah, that is nice because we can also then play with the utilization of the plant by moving capacity forward or in the other direction, to get to the highest utilization and efficiency in the plant.

Speaker #3: I agree that you're managing the cost quite well. But what is kind of a worst-case scenario in terms of further downside in the top line in the second half?

Speaker #1: Okay, that's very helpful. And one final question: for Harm, what is your worst-case scenario for the second half? Because indeed, the order book levels are quite low.

Thijs Olthof: Okay. That is very helpful. One final question for Harm. What is kind of your worst-case scenario for H2? Because indeed, the order book levels are quite low. I agree that you are managing the costs quite well, but what is kind of a worst-case scenario in terms of further downside in the top line in H2?

Tijs Hollestelle: Okay. That is very helpful. One final question for Harm. What is kind of your worst-case scenario for H2? Because indeed, the order book levels are quite low. I agree that you are managing the costs quite well, but what is kind of a worst-case scenario in terms of further downside in the top line in H2?

Speaker #4: Yeah. Again, yeah.

Speaker #2: Again, a very good question. But since it relates to forward-looking results, yeah, we have to state with what we already said. On group level, so I cannot be very specific on this.

Speaker #1: I agree that you're managing the costs quite well, but what is the worst-case scenario in terms of further downside in the top line in the second half?

Elling de Lange: Yeah, again, a very good question, but since it relates to forward-looking results, we have to state with what we already said.

Harm Voortman: Yeah, again, a very good question, but since it relates to forward-looking results, we have to state with what we already said. On group level, I cannot be very specific on this. Indeed, order book is going down since the order intake is at a lower pace than our turnover. We still have an order book, so we still have work to go. We also still have time to receive orders and catch up again. That is all we can say about that.

Speaker #3: Yeah. Again, yeah.

Speaker #2: Indeed, order book is going down since the order intake is at a lower pace than our turnover. We still have an order book. So we still have work to go.

Speaker #2: Again, a very good question, but since it relates to forward-looking results, yeah, we have to stay with what we already said—on group level. So, I cannot be very specific on this.

Speaker #2: So we also still have time to receive orders and catch up again. But that's all we can say about.

Harm Voortman: On group level, I cannot be very specific on this. Indeed, order book is going down since the order intake is at a lower pace than our turnover. We still have an order book, so we still have work to go. We also still have time to receive orders and catch up again. That is all we can say about that.

Speaker #2: Indeed, the order book is going down since the order intake is at a lower pace than our turnover. We still have an order book, so we still have work to go.

Speaker #3: Right. There are no strange elements in the top line of the first half. Finalizing projects, a lot of revenue recognition. This kind of underlying trend is visible in the first half numbers of the tire business.

Speaker #2: So we also still have time to receive orders and catch up again. That's all we can say about it.

Speaker #2: No.

Speaker #3: No funnies.

Speaker #2: No. No. Just very well managed process, I think.

Speaker #1: Right. There are no strange elements in the top line of the first half. Finalizing projects, a lot of revenue recognition—this kind of underlying trend is visible in the first half numbers of the entire business.

Maik de Graaf: There are no strange elements in the top line of the H1, finalizing projects, a lot of revenue recognition. This kind of underlying trend is visible in the H1 numbers of the tire business.

Tijs Hollestelle: There are no strange elements in the top line of the H1, finalizing projects, a lot of revenue recognition. This kind of underlying trend is visible in the H1 numbers of the tire business.

Speaker #3: Okay. Yeah.

Speaker #1: Yeah. Martin and I for ABN AMRO again. On the AIMS haven, did Lochem provide any support in H1? And if yes, will it continue to provide support in H2?

Speaker #2: No.

Harm Voortman: No.

Maik de Graaf: No funnies?

Tijs Hollestelle: No funnies?

Speaker #1: No funnies.

Speaker #2: No, no. Just a very well-managed process, I think.

Harm Voortman: No. Just a very well-managed process, I think.

Speaker #2: Well, it's very good that Bosch factories support each other. So we have moved also capacity from AIMS haven to the onshore business. That is working out quite well.

Speaker #1: Okay. Yeah.

Maik de Graaf: Okay. Yeah.

Tijs Hollestelle: Okay. Yeah.

Speaker #2: Yeah, Martin and I for ABN AMRO again. On the AIMS haven, did Lochem provide any support in H1? And if yes, will it continue to provide support in H2?

Martijn van Dijke: Martijn van Dijke for ABN AMRO again. On the Eemshaven, did Lochem provide any support in H1? If yes, will it continue to provide the support in H2?

Martijn den Drijver: Martijn van Dijke for ABN AMRO again. On the Eemshaven, did Lochem provide any support in H1? If yes, will it continue to provide the support in H2?

Speaker #2: And also some cables that fit better into the capabilities of Lochem. We are manufacturing in Lochem.

Speaker #1: Well, that's very good that both factories support each other. So, we have also moved capacity from AIMS Haven to the onshore business. That is working out quite well.

Speaker #1: Okay. And there was already a question about the plus 90% EBITDA margin of electrification. And you mentioned that it was not solely, but mainly due to optimization.

Alexander van der Lof: Well, it is very good that both factories support each other. We have moved also capacity from Eemshaven to the onshore business. That is working out quite well, and also some cables that fit better into the capabilities of Lochem, we are manufacturing in Lochem.

Speaker #1: And also some cables that better fit the capabilities of Lochem. We are manufacturing in Lochem.

Speaker #1: But what have you baked in in terms of capacity expansion? Because you were expanding in high voltage in Lochem, for example. So is that 19% on current scope or including plant expansions?

Speaker #2: Okay. And there was already a question about the plus 90% EBITDA margin of Electrification, and you mentioned that it was not solely, but mainly, due to optimization.

Martijn van Dijke: Okay. There was already a question about the +90% EBITDA margin of Electrification, and you mentioned that it was not solely but mainly due to optimization. What have you baked in in terms of capacity expansion, because you were expanding in high voltage in Lochem, for example. Is that 19% on current scope or including planned expansions?

Martijn den Drijver: Okay. There was already a question about the +90% EBITDA margin of Electrification, and you mentioned that it was not solely but mainly due to optimization. What have you baked in in terms of capacity expansion, because you were expanding in high voltage in Lochem, for example. Is that 19% on current scope or including planned expansions?

Speaker #2: That's including plant expansions. Yes.

Speaker #1: Okay. And how much would that be roughly be in terms of percentages? Is that 10% plus, 20% plus?

Speaker #2: But what have you baked in, in terms of capacity expansion? Because you were expanding in high voltage in Lochem, for example. So is that 19% on current scope, or does it include plant expansions?

Speaker #2: Again, I come back to what Elling mentioned. We cannot be specific about the outlook.

Speaker #1: Okay. And another question for Harm. Can you just talk a little bit more in general terms about developments in terms of tier one versus the Asian players?

Speaker #1: That's including plant expansions, yes.

Alexander van der Lof: That is including planned expansions. Yes.

Speaker #2: Okay. And how much would that be roughly in terms of percentages? Is that 10% plus, 20% plus?

Martijn van Dijke: Okay. How much would that roughly be in terms of percentages? Is that 10% plus, 20% plus?

Martijn den Drijver: Okay. How much would that roughly be in terms of percentages? Is that 10% plus, 20% plus?

Speaker #1: Because I recognize from the tire manufacturers that they're having a difficult time. But I also know that partly that is due to the fact that the Asian players are gaining market share and building capacity in Europe.

Speaker #1: Again, I come back to what Alan mentioned—that we cannot be specific about the outlook. And another question for Harm: can you just talk a little bit more, in general terms, about developments in terms of tier one versus the Asian players?

Alexander van der Lof: Again, I come back to

Martijn van Dijke: Roughly

Martijn den Drijver: Roughly

Alexander van der Lof: what Alain mentioned that we cannot be specific about the outlook.

Martijn van Dijke: Okay. And another question for Harm. Can you just talk a little bit more in general terms about developments in terms of Tier 1 versus the Asian players? Because I recognize from the tire manufacturers that they are having a difficult time, but I also know that partly that is due to the fact that the Asian players are gaining market share and building capacity in Europe and other regions. So can you please elaborate a little bit on how that mix is not reflected yet in your order intake?

Martijn den Drijver: Okay. And another question for Harm. Can you just talk a little bit more in general terms about developments in terms of Tier 1 versus the Asian players? Because I recognize from the tire manufacturers that they are having a difficult time, but I also know that partly that is due to the fact that the Asian players are gaining market share and building capacity in Europe and other regions. So can you please elaborate a little bit on how that mix is not reflected yet in your order intake?

Speaker #1: And other regions. So can you please elaborate a little bit on how that mix is not reflected yet in your order intake?

Speaker #1: Because I recognize from the tire manufacturers that they're having a difficult time, but I also know that partly that is due to the fact that the Asian players are gaining market share and building capacity in Europe.

Speaker #2: I think the current situation is that the reluctance to firmly place orders is not specifically tier one. That is in general over the whole industry and that you could say there are a whole set of circumstances that create this reluctance the reasons can be different.

Speaker #1: Other regions. So, can you please elaborate a little bit on how that mix is not reflected yet in your order intake?

Speaker #2: I think the current situation is that the reluctance to firmly place orders is not specifically tier one. That is in general over the whole industry, and you could say there is a whole set of circumstances that create this reluctance. In several areas, the reasons can be different.

Harm Voortman: I think the current situation is that the reluctance to firmly place orders is not specifically Tier 1. That is, in general, over the whole industry. You could say there is a whole set of circumstances that create this reluctance. In several areas, the reasons can be different, but in general, high energy cost, high input cost for materials. A lot of the tire elements are synthetic, so based on oil. So the high oil price, the high energy price does not help the customers. All the differences on trade barriers and tariffs, et cetera, makes it also uncertain. In that whole environment, you see in general a reluctance. At the same time, there is need for additional capacity and there is a need to change production technology into new technology to address the change in the demand for different kinds of tires in the world.

Speaker #2: But in general, high energy cost, high input cost for materials, a lot of the tire elements are synthetic. So based on oil. So the high oil price, the high energy price does not help the customers.

Speaker #2: The all the differences on trade barriers and tariffs, etc., makes it also uncertain. And in that whole environment, you see in general, a reluctance.

Speaker #2: But in general, high energy costs and high input costs for materials—a lot of the tire elements are synthetic, so based on oil—mean that high oil prices and high energy prices do not help the customers.

Speaker #2: At the same time, there is need for additional capacity. And there is a need to change production technology into new technology to address the change in the demand for different kinds of tires in the world.

Speaker #2: All the differences in trade barriers and tariffs, etc., make it uncertain. And in that whole environment, you see, in general, a reluctance.

Speaker #2: So whether that is tier one, tier two, tier three, these elements are still there. All the same. So it's quite clear that there will be a moment that these projects will have to happen.

Speaker #2: At the same time, there is a need for additional capacity. And there is a need to change production technology to new technology to address the change in demand for different kinds of tires in the world.

Speaker #2: The as Alexander already mentioned, we are not losing any orders. To any competition. It's just that the market right now is holding its breath.

Speaker #2: So whether that is tier one, tier two, or tier three, these elements are still there, all the same. So it's quite clear that there will be a moment when these projects will have to happen.

Harm Voortman: So whether that is Tier 1, Tier 2, Tier 3, these elements are still there, all the same. So it is quite clear that there will be a moment that these projects will have to happen. As Alexander already mentioned, we are not losing any orders to any competition. It is just that the market right now is holding its breath. We expect there will be a moment, and nobody can really predict when that will be, but there will be a moment that these orders will come in. Whether that is from Tier 1, Tier 2, Tier 3, well, actually, I think with the portfolio that TKH has to offer, you could say it does not matter where or when or who is going to order what, but it is now just in general a slow market.

Speaker #2: We expect there will be a moment and nobody can really predict when that will be. But there will be a moment that these orders will come in.

Speaker #2: As Alexander already mentioned, we are not losing any orders or any competition. It's just that the market right now is holding its breath. We expect there will be a moment—nobody can really predict when that will be—but there will be a moment when these orders will come in.

Speaker #2: And the and whether that is from tier one, tier two, tier three, well, actually, I think with the portfolio that TKH has to offer, yeah, you could say it doesn't matter where or when or who is going to order what.

Speaker #2: But the but it's now just in general, a slow market.

Speaker #1: Understood. And one final question again for Harm. You were running VMI automated production you had a vision on your wings. Now you have a new CEO coming in.

Speaker #1: What will be your role in the new management board? Will that remain the same or is it going to change?

Speaker #1: Understood. And one final question, again for Harm. You were running VMI automated production, you had a vision on your wings. Now you have a new CEO coming in.

Martijn van Dijke: Understood. And one final question, again, for Harm. You were running VMI Automated Production. You had a vision on your wings. Now you have a new CEO coming in. What will be your role in the new management board? Will that remain the same or is it going to change?

Martijn den Drijver: Understood. And one final question, again, for Harm. You were running VMI Automated Production. You had a vision on your wings. Now you have a new CEO coming in. What will be your role in the new management board? Will that remain the same or is it going to change?

Speaker #2: So far, it will remain the same. But as you say, we're excited to have a new team being formed. And of course, some roles have to be redefined.

Speaker #1: What will be your role in the new management board? Will that remain the same, or is it going to change?

Speaker #2: So we'll see. We're excited about that.

Speaker #1: Understood. Thank you.

Speaker #3: Mike.

Speaker #1: Michael.

Speaker #3: Follow-up question, Michael Roeg, of Betecom. Follow-up question on the question by Tijs about producing a cable starting two years before the client needs it for installation.

Speaker #2: So far, it will remain the same. But as you say, we're excited to have a new team being formed. And of course, some roles have to be redefined.

Harm Voortman: So far it will remain the same. But as you say, we are excited to have a new team being formed. And of course, some roles have to be redefined. So we will see. We are excited about that.

Speaker #3: You mentioned that you can produce so early that allows you good utilization throughout the entire year. I suppose that means that sometimes you have quite some cable on inventory along the next to the factory for which there's a lot of room.

Speaker #2: So, we'll see. We're excited about that.

Speaker #1: Understood. Thank you.

Martijn van Dijke: Understood. Thank you.

Martijn den Drijver: Understood. Thank you.

Speaker #3: Mike, follow-up question. Mike Rucht of Petcom. Follow-up question on the question by Thijs about producing a cable starting two years before the client needs it for installation.

Maik de Graaf: Michael. A follow-up question, Michael Ruch of Degroof Petercam. A follow-up question on the question by Thijs about producing a cable starting 2 years before the client needs it for installation.

Mike Roeg: Michael. A follow-up question, Michael Ruch of Degroof Petercam. A follow-up question on the question by Thijs about producing a cable starting 2 years before the client needs it for installation. You mentioned that you can produce so early and that allows you good utilization throughout the entire year. I suppose that means that sometimes you have quite some cable on inventory next to the factory, for which there is a lot of room. Is that on your books as part of inventory, or does the client pay the final installment upon completion and whether it is next to your factory or somewhere else, it is no longer your balance sheet?

Speaker #3: Is that on your books as part of inventory or does the client pay the final installment upon completion? And whether it's next to your factory or somewhere else, it's no longer in your balance sheet?

Speaker #3: You mentioned that you can produce so early that it allows you good utilization throughout the entire year. I suppose that means that sometimes you have quite some cable in inventory next to the factory, for which there's a lot of room.

Maarten Verbeek: You mentioned that you can produce so early and that allows you good utilization throughout the entire year. I suppose that means that sometimes you have quite some cable on inventory next to the factory, for which there is a lot of room. Is that on your books as part of inventory, or does the client pay the final installment upon completion and whether it is next to your factory or somewhere else, it is no longer your balance sheet?

Speaker #2: Exactly that last is remark is the case. So we get paid once we do the factory acceptance test. And then the cable is stored at the storage facilities that we have in AIMS haven.

Speaker #3: Is that on your books as part of inventory, or does the client pay the final installment upon completion? And whether it’s next to your factory or somewhere else, it’s no longer in your balance sheet?

Speaker #3: Okay. That's reassuring. That's it from my side. Thank you.

Speaker #1: Exactly that last remark is the case. So we get paid once we do the factory acceptance test, and then the cable is stored at the storage facilities that we have in AIMS Haven.

Alexander van der Lof: Exactly. That last remark is the case. We get paid once we do the factory acceptance test, and then the cable is stored at the storage facilities that we have in Eemshaven.

Speaker #1: Trion.

Speaker #4: Thank you. Hi. It's Trion from Berenberg. Just one question following up on what Tijs asked about the inter-array cable. That revenue run rate is higher than the revenue you talked about in the past.

Speaker #3: Okay, that's reassuring. That's it from my side. Thank you.

Maarten Verbeek: Okay. That's reassuring. That's it from my side. Thank you.

Mike Roeg: Okay. That's reassuring. That's it from my side. Thank you.

Speaker #4: Why was that? Is that higher than expected volumes or is the pricing a bit higher or maybe a better mix? What was the reason?

Alexander van der Lof: Trion.

Speaker #1: Ryan.

Speaker #4: Thank you. Hi, Trion from Berenberg. Just one question following up on what Thijs asked about the inter-array cable. That revenue run rate is higher than the revenue you talked about in the past.

[Analyst] (Berenberg): Thank you. Hi, yeah, it's Trion from Berenberg. Just one question following up on what Tice asked about the inter-array cable. That revenue run rate is higher than the revenue you talked about in the past. Why was that? Is that higher than expected volumes, or is the pricing a bit higher or maybe a better mix? What was the reason?

Trion Reid: Thank you. Hi, yeah, it's Trion from Berenberg. Just one question following up on what Tice asked about the inter-array cable. That revenue run rate is higher than the revenue you talked about in the past. Why was that? Is that higher than expected volumes, or is the pricing a bit higher or maybe a better mix? What was the reason?

Speaker #2: On the revenue?

Speaker #1: What is also included is, of course, that it's not 100% cable sales. There is also accessories and services which are part of the revenue stream.

Speaker #4: Why was that? Is that due to higher-than-expected volumes, or is the pricing a bit higher, or maybe a better mix? What was the reason?

Speaker #1: As we have seen also in '25. So from that point of view, it's not the only running rate in terms of if you want to convert it into kilometers or things like that.

Speaker #1: I'll do it again. What is also included is, of course, that it's not 100% cable sales. There are also accessories and services, which are part of the revenue stream.

Alexander van der Lof: Ondo or Jeroen?

Elling de Lange: What is also included is, of course, that it is not 100% cable sales. There is also accessories and services which are part of the revenue stream, as we have seen also in 2025. From that point of view, it is not the only running rate in terms of if you want to convert it into kilometers or things like that. It is a combination of services, accessories, plus the connectivity part.

Speaker #1: It's a combination of services, es, accessories, plus the connectivity part.

Speaker #4: Okay. So the 170 million that we talked about was the pure cable part?

Speaker #1: As we have seen also in Q2 '25. So from that point of view, it's not the only running rate in terms of if you want to convert it into kilometers or things like that.

Speaker #2: No.

Speaker #1: Not fully. But that's more with the accessories. Currently, we have some other services part of it as well.

Speaker #1: It's a combination of services, accessories, and the connectivity part.

Speaker #4: Okay. Thanks.

Speaker #4: Okay. So the €170 million that we talked about was the pure cable part?

[Analyst] (Berenberg): Okay, so the EUR 170 million that we talked about was the pure cable part?

Trion Reid: Okay, so the EUR 170 million that we talked about was the pure cable part?

Speaker #3: Mark Verbeek again, the idea. Could you quantify that as a percentage of offshore energy? What is services etc.?

Elling de Lange: Not truly, but that is more with the accessories. Currently, we have some other services part of it as well.

Speaker #1: No, not fully. But that's more with the accessories. Currently, we have some other services as part of it as well.

Speaker #2: We just help you with a split of the activities. Now you're asking already for the next one.

Speaker #4: Okay. Thanks.

[Analyst] (Berenberg): Okay, thanks.

Trion Reid: Okay, thanks.

Speaker #3: Yeah. But obviously, it's a very important contributor to your profitability.

Speaker #1: Martin back again. The idea—could you quantify that as a percentage of offshore energy? What is 'services', etc.?

Maarten Verbeek: Maarten Verbeek again, here. Could you quantify that as a presentation of offshore energy waters services, et cetera?

Speaker #2: Yeah. Bottom line, it does not have a big effect because outsourced activities don't bear the cost. You have a new manufactured the products or the services yourself.

Alexander van der Lof: We just help you with the splits of the activities. Now you are asking already for the next one.

Speaker #2: We just helped you with the split of activities. Now you're already asking for the next one.

Speaker #3: Okay. Then two other ones. Firstly, you received framework contracts totaling 1.4 billion within the onshore energy. For what time frame is this amount?

Maarten Verbeek: Yeah, but obviously it is a very important contributor to your profitability.

Speaker #1: But obviously, it's a very important contributor to your profitability.

Speaker #2: Yeah. Bottom line, it does not have a big effect because outsourced activities don't bear the cost. You have to manufacture the products or the services yourself.

Alexander van der Lof: Yeah, but bottom line, it does not have a big effect because outsourced activities don't bear the cost you have when you manufacture the products or the services yourself.

Speaker #2: It's going up to 2030 too.

Speaker #1: Even a little bit beyond. It's let's say it has different end dates, of course. But the last part runs to 30, 34.

Speaker #1: Okay. Then two other ones. Firstly, you received framework contracts totaling €1.4 billion within the onshore energy. For what time frame is this amount?

Maarten Verbeek: Okay, then two other ones. Firstly, you received framework contracts totaling EUR 1.4 billion within the onshore energy. For what time frame is this amount?

Speaker #3: Okay. And then one for Harm. If you now look at your cost of sales, which came down by roughly a million will your revenue decline much more than that?

Speaker #2: It's going up to 2030, too.

Alexander van der Lof: That is going up to 2032.

Elling de Lange: Even a little bit beyond. Let's say it has different end dates, of course, but the last part runs till 2034, out of my head.

Speaker #1: Even a little bit beyond. Let's say it has different end dates, of course, but the last part runs to 2034. Okay. And then one for Harm.

Speaker #3: It looks like H2, although you're not willing to give some kind of comment outlook, will decline even further from what we have seen in the first half of this year.

Maarten Verbeek: Okay. Then one for Harm. If you now look at your cost of sales, which came down by roughly EUR 1 million, whilst your revenue declined much more than that. It looks like H2, although you are not going to give some kind of comment outlook, will decline even further from what we have seen in the first half of this year. What will you be able to manage your cost to your new sales level?

Speaker #1: If we now look at your cost of sales, which came down by roughly a million, while your revenue declined much more than that, it looks like H2—although you're not willing to give some kind of outlook—will decline even further from what we have seen in the first half of this year.

Speaker #3: What will you be able to manage your cost to your new sales level?

Speaker #2: Well, first of all, you cannot save yourself into prosperity as we always say. You cannot manage your cost down at a rate that your profitability remains the same if your revenue drops but the but obviously, you can do a lot on your cost saving.

Speaker #1: Will you be able to manage your costs to your new sales level?

Speaker #2: Well, first of all, you cannot save yourself into prosperity, as we always say. You cannot manage your costs down at a rate that keeps your profitability the same if your revenue drops, but obviously, you can do a lot on your cost saving.

Harm Voortman: Well, first of all, you cannot save yourself into prosperity, as we always say. You cannot manage your cost down at the rate that your profitability remains the same if your revenue drops. But obviously, you can do a lot on your cost saving, that is quite clear. The only point is that we have to look at when are new orders coming in, when is the market going to return, and will we be able to then quickly scale up and pick up again and benefit from a much higher turnover then? It is this fine balance that we are constantly managing. Obviously, you can cut cost right away, but then you will miss out, maybe quite quickly, on the pickup in the market. That is a balance that we have to look for.

Speaker #2: That's quite clear. The only point is that we have to look at when our new orders coming in, when is the market going to return.

Speaker #2: And will we be able to then quickly scale up and pick up again? And benefit from a much higher turnover then. And it is this fine balance that we're constantly managing.

Speaker #2: That's quite clear. The only point is that we have to look at when our new orders are coming in, and when the market is going to return.

Speaker #2: So obviously, you can cut cost right away. But then you will miss out maybe quite quickly on the pickup in the market. So that is the balance that we have to look for.

Speaker #2: And will we be able to then quickly scale up and pick up again? And benefit from a much higher turnover then. It is this fine balance that we're constantly managing.

Speaker #3: So you will be able to reduce your cost a bit but not an awful lot.

Speaker #2: Oh, obviously, you can reduce your cost a lot. But that changes your organization into something that cannot be scale up again very quickly.

Speaker #2: So obviously, you can cut costs right away, but then you will miss out—maybe quite quickly—on the pickup in the market. So that is the balance that we have to look for.

Speaker #3: Okay. So it's highly likely that you will be able to reduce your cost but looking forward, you will be underutilized.

Speaker #1: So, you will be able to reduce your cost a bit, but not an awful lot.

Maarten Verbeek: You will be able to reduce your cost a bit, but not an awful lot?

Speaker #2: Well, that is a particularly a point that we will not comment on. We're doing our best and I think so far quite successful in managing our cost.

Speaker #2: Oh, obviously, you can reduce your costs a lot. But that changes your organization into something that cannot be scaled up again very quickly.

Harm Voortman: Obviously, you can reduce your cost a lot, but that changes your organization into something that cannot be scaled up again very quickly.

Speaker #1: Okay. So, it's highly likely that you will be able to reduce your costs. But looking forward, you will be underutilized.

Maarten Verbeek: Okay. It is highly likely that you will be able to reduce your cost, but looking forward, you will be underutilized?

Speaker #2: But it's quite clear that if your revenue drops, that even if you manage your cost quite in a very good way, that the profitability drops a little.

Speaker #2: Well, that is particularly a point that we will not comment on. We're doing our best, and I think so far we've been quite successful in managing our costs.

Harm Voortman: Well, that is particularly a point that we will not comment on. We are doing our best, and I think so far are quite successful in managing our cost. But it is quite clear that if your revenue drops, that even if you manage your cost in a very good way, the profitability drops a little.

Speaker #3: Michael, again. I have a question about the vision systems activity. I imagine one of the most important components is image sensors. But there's probably some memory chips in there as well and microcontrollers.

Speaker #2: But it's quite clear that if your revenue drops, even if you manage your costs in a very good way, the profitability drops a little.

Speaker #3: And some of these types of chips are going up in price. Some are going up exponentially in price. First of all, can you pass on everything to the client?

Maarten Verbeek: Michael Ruch again. I have a question about the Vision Technology activity. I imagine that one of the most important components is image sensors, but there is probably some memory chips in there as well, and microcontrollers. And some of these types of chips are

Mike Roeg: Michael Ruch again. I have a question about the Vision Technology activity. I imagine that one of the most important components is image sensors, but there is probably some memory chips in there as well, and microcontrollers. And some of these types of chips are going up in price. Some are going up exponentially in price. First of all, can you pass on everything to the client? And second of all, was part of that solid organic growth in the first half of the year also price-driven next to volume-driven?

Speaker #3: Michael again. I have a question about the vision systems activity. I imagine one of the most important components is image sensors, but there are probably some memory chips in there as well, and microcontrollers.

Speaker #3: And second of all, was part of that solid organic growth in the first half of the year also price driven next to volume driven?

Speaker #3: And some of these types of chips are going up in price. Some are going up exponentially in price. First of all, can you pass on everything to the client?

Speaker #2: Now the price driven effect was limited. You always have price increases and introductions of new products. And systems through which you have different pricing and that can support also your margin, depending on what the innovation level is and the USPs you have.

Elling de Lange: going up in price. Some are going up exponentially in price. First of all, can you pass on everything to the client? And second of all, was part of that solid organic growth in the first half of the year also price-driven next to volume-driven?

Speaker #3: And second of all, was part of that solid organic growth in the first half of the year also price-driven, next to volume-driven?

Speaker #2: What we see is that the scarcity of certain components has not really impacted us. A little bit. And also for the second half year, we see at this moment that we will be impacted limited.

Alexander van der Lof: The price-driven effect was limited. You always have price increases and introductions of new products and systems for which you have different pricing, and that can support also your margin, depending on what the innovation level is and the USPs you have. What we see is that the scarcity of certain components has not really impacted us. A little bit, and also for the H2, we see at this moment that we will be impacted limited, the impact will be limited, and we can pass on fully the component price increases towards our customers.

Speaker #2: The price-driven effect was limited. You always have price increases and introductions of new products, and systems through which you have different pricing. That can also support your margin, depending on what the innovation level is and the USPs you have.

Speaker #2: The impact will be limited. And we can pass on fully the component price increases towards our customers.

Speaker #2: What we see is that the scarcity of certain components has not really impacted us—a little bit. And also, for the second half of the year, we see at this moment that we will be impacted, but the impact will be limited.

Speaker #3: Okay. Thank you.

Speaker #5: I was just can you do the Teams questions now?

Speaker #2: And we can fully pass on the component price increases to our customers.

Speaker #6: Hi. Good morning, all. And thank you for taking my questions. Just Chase from Kempton. I recognize you can't say much about forward-looking outlooks, but I will try to get a bit more detail on the first half regarding the electrification margin.

Speaker #3: Okay. Thank you.

Maarten Verbeek: Okay. Thank you.

Mike Roeg: Okay. Thank you.

Speaker #2: Yeah.

Alexander van der Lof: Yeah.

[Analyst] (Kempen): Can we do the team questions now? Hi, good morning, all, and thank you for taking my questions. This is Chase from Kempen. I recognize you cannot say much about forward-looking outlooks, but I will try to get a bit more detail on the H1 regarding the Electrification margin. So obviously a 12.6% EBITDA, could you break it down a little bit if there was a large margin step-up in the Q2, or do you think the Q1 and Q2 were broadly similar in terms of margin? That would be my first question.

Chase Coughlan: Can we do the team questions now? Hi, good morning, all, and thank you for taking my questions. This is Chase from Kempen. I recognize you cannot say much about forward-looking outlooks, but I will try to get a bit more detail on the H1 regarding the Electrification margin. So obviously a 12.6% EBITDA, could you break it down a little bit if there was a large margin step-up in the Q2, or do you think the Q1 and Q2 were broadly similar in terms of margin? That would be my first question.

Speaker #5: And could you do the Teams questions now?

Speaker #6: And so obviously, a 12.6% EBITDA. Could you sort of break it down a little bit if there was a large margin step up in the second quarter?

Speaker #6: Hi. Good morning, all, and thank you for taking my questions. Just Chase from Kempton. I recognize you can't say much about forward-looking outlooks, but I will try to get a bit more detail on the first half regarding the electrification margin and, obviously, a 12.6% EBITDA.

Speaker #6: Or do you think the first quarter and second quarter were broadly similar in terms of margin? That would be my first question.

Speaker #1: I mean, you started yourself with the kind of disclaimer to your question. I'm afraid I have to repeat that a little bit in terms of forward-looking statements.

Speaker #6: Could you break it down a little bit? Was there a large margin step-up in the second quarter, or do you think the first quarter and second quarter were broadly similar in terms of margin?

Speaker #1: I think what we have mentioned that the operational improvement which we have made in the last couple of quarters that we believe that that will not stop as of the 30th of June.

Speaker #6: That would be my first question.

Speaker #1: I mean, you started yourself with a kind of disclaimer to your question. I'm afraid I have to repeat that a little bit in terms of forward-looking statements.

Elling de Lange: You started yourself with the kind of disclaimer to your question. I am afraid to have to repeat that a little bit in terms of forward-looking statements. I think what we have mentioned that the operational improvements which we have made in the last couple of quarters, that we believe that that will not stop as of 30 June. So the benefits of that definitely are there. But I will shy away from giving a specific percentage in terms of EBITDA improvement.

Speaker #1: So the benefits of that definitely are there. But I will shy away from giving a specific percentage in terms of EBITDA improvement.

Speaker #1: I think what we have mentioned is that the operational improvement which we have made in the last couple of quarters—we believe that will not stop as of the 30th of June.

Speaker #6: Okay. No, that's still helpful. And then I wanted to touch back on the onshore energy cables. So I know there's been some discussion over the last few quarters about the international expansion there.

Speaker #1: So the benefits of that definitely are there, but I will shy away from giving a specific percentage in terms of EBITDA improvement.

Speaker #6: Could you provide a bit more of an update on that? When do you see that potentially becoming sort of a real growth driver? Or is that already yeah, let's say pushing the organic sales growth as well?

Speaker #6: Okay, no, that's still helpful. And then I wanted to touch back on the onshore energy cables. I know there's been some discussion over the last few quarters about the international expansion there.

[Analyst] (Kempen): Yeah, no, that is still helpful. I wanted to touch back on the onshore energy cables. I know there has been some discussion over the last few quarters about the international expansion there. Could you provide a bit more of an update on that? When do you see that potentially becoming a real growth driver, or is that already, let us say, pushing the organic sales growth as well?

Chase Coughlan: Yeah, no, that is still helpful. I wanted to touch back on the onshore energy cables. I know there has been some discussion over the last few quarters about the international expansion there. Could you provide a bit more of an update on that? When do you see that potentially becoming a real growth driver, or is that already, let us say, pushing the organic sales growth as well?

Speaker #2: Yeah. We see a good development. There's our position also abroad, internationally and within Europe. Part of the success is already in the order book and also in the turnover.

Speaker #6: Could you provide a bit more of an update on that? When do you see that potentially becoming a real growth driver, or is that already, let's say, pushing the organic sales growth as well?

Speaker #2: And for the medium term, there's a very big opportunities.

Speaker #2: Yeah. We see good development. There's our position also abroad, internationally within Europe. Part of the success is already in the order book and also in the turnover, and for the medium term.

Alexander van der Lof: Yeah, we see a good development with our position also abroad, internationally and within Europe. Part of the success is already in the order book and also in the turnover. For the medium term, there are very big opportunities.

Speaker #6: Okay. And the final question, going back to vision. There's been a lot of discussion obviously from yourselves, but also from peers about sort of implementing AI tools and sort of enhancing functionality and value at the clients there.

Speaker #6: And I'm curious on basically where do you see TKH vision in terms of, yeah, the competitive landscape? Do you feel that you're exceeding expectations in terms of AI implementation?

Speaker #2: There's very big opportunities.

[Analyst] (Kempen): Okay, the final question, going back to Vision. There has been a lot of discussion, obviously from yourselves, but also from peers about implementing AI tools and enhancing functionality and value at the clients there. I am curious on basically where do you see TKH Vision in terms of the competitive landscape? Do you feel that you are exceeding expectations in terms of AI implementation, or do you see some peers perhaps growing that side of the business faster? Just any sort of commentary around the strategy incorporating AI into Vision, please.

Chase Coughlan: Okay, the final question, going back to Vision. There has been a lot of discussion, obviously from yourselves, but also from peers about implementing AI tools and enhancing functionality and value at the clients there. I am curious on basically where do you see TKH Vision in terms of the competitive landscape? Do you feel that you are exceeding expectations in terms of AI implementation, or do you see some peers perhaps growing that side of the business faster? Just any sort of commentary around the strategy incorporating AI into Vision, please.

Speaker #6: Okay, and the final question, going back to Vision. There's been a lot of discussion, obviously from yourselves but also from peers, about implementing AI tools and enhancing functionality and value at the client there.

Speaker #6: Or do you see some peers perhaps growing that side of the business faster? Just any sort of commentary around the strategy incorporating AI into vision, please.

Speaker #6: And I'm curious, basically, where do you see TKH’s vision in terms of the competitive landscape? Do you feel that you're exceeding expectations in terms of AI implementation, or do you see some peers perhaps growing that side of the business faster?

Speaker #2: Yeah. With respect to, of course, peers, what is going on with peers, we cannot comment. What we can see is that AI is mission-critical for the development and of the vision tech technologies.

Speaker #6: Just any sort of commentary around the strategy of incorporating AI into vision, please.

Speaker #2: We already had longer time ago a very strong software play and that software play has been smoothly transformed in an AI play. We did quite some investments in a AI competence center in Amsterdam.

Speaker #2: Yes. With respect to peers, of course, what is going on with peers we cannot comment on. What we can see is that AI is, yes, mission-critical for the development and for the vision tech technologies.

Alexander van der Lof: Yeah. With respect to, of course, peers, what is going on with peers, we cannot comment. What we can see is that AI is mission-critical for the development of the Vision technologies. We already had, a longer time ago, a very strong software play, and that software play has been smoothly transformed in an AI play. We did quite some investments in an AI competence center in Amsterdam, and at the same time, we saw that in several companies in the group, also further investments have been made into AI. It is difficult to compare with competition. Based on the market share that we see and the opportunities we see, I believe we are doing a quite good job with our position in the AI, with the AI tools.

Speaker #2: And at the same time, we saw that in several companies in the group, also further investments have been made into AI. It is different difficult to compare with competition.

Speaker #2: We already had, a longer time ago, a very strong software play, and that software play has been smoothly transformed into an AI play. We did quite some investments in an AI competence center in Amsterdam.

Speaker #2: But based on the market share that we see, and the opportunities we see, I believe we are doing a quite good job with our position in the AI tools.

Speaker #2: And at the same time, we saw that in several companies in the group, further investments have also been made into AI. It is difficult to compare with competition.

Speaker #6: You'd argue that you're growing market share in the first half at least within vision?

Speaker #2: But based on the market share that we see and the opportunities we see, I believe we are doing a quite good job with our position in AI, with the AI tools.

Speaker #2: I believe it's difficult to exactly say that we gained market share. Because the comparison basis is difficult. Some of our competitors are in different areas.

Speaker #2: Yeah. In general, we see especially in the defense sector that we are gaining market share. And I believe it's difficult to comment exactly the market share gains in other segments.

[Analyst] (Kempen): So you would argue that you are growing market share, in the H1 at least, within Vision?

Chase Coughlan: So you would argue that you are growing market share, in the H1 at least, within Vision?

Speaker #6: Would you say that you gained market share in the first half, at least within Vision?

Alexander van der Lof: I believe it's difficult to exactly say that we gained market share, because the comparison base is difficult. Some of our competitors are in different areas. In general, we see, especially in the defense sector, that we are gaining market share, and I believe it's difficult to comment exactly the market share gains in other segments.

Speaker #2: I believe it's difficult to say exactly that we gained market share, because the comparison basis is difficult. Some of our competitors are in different areas.

Speaker #6: Okay. No, that's very helpful. Thank you, Alexander, really.

Speaker #3: Thanks, Chase.

Speaker #2: Thanks.

Speaker #2: Yes. In general, we see, especially in the defense sector, that we are gaining market share. I believe it is difficult to comment exactly on the market share gains in other segments.

Speaker #3: Do you have another question? Yeah. Could good morning. I had three small questions left. The first one is actually on digitalization. With you've had about a swing of 16 million euro at EBITDA line, I think.

[Analyst] (Kempen): Correct. No, that's very helpful. Thank you, Alexandre, Alain.

Chase Coughlan: Correct. No, that's very helpful. Thank you, Alexandre, Alain.

Speaker #6: Okay, no, that's very helpful. Thank you, Alexander.

Speaker #3: Thanks, Chase.

Elling de Lange: Thanks, Chase.

Alexander van der Lof: Thanks, Chase.

Elling de Lange: Thanks. Do you have another question?

Speaker #2: Thanks. Do you have another question?

Speaker #3: Can you say a bit how much that came from sort of the pricing that you point to in the press release? And how that compared to maybe also the volumes out of China and Poland?

Speaker #5: We have another question.

[Analyst] (Kempen): We have another question.

[Unknown Speaker]: We have another question.

[Analyst]: Yeah. Good morning. I had three small questions left. The first one is actually on digitalization. You had about a swing of EUR 16 million at the EBITDA line, I think. Can you size a bit how much that came from the pricing that you point to in the press release and how that compared to maybe also the volumes out of China and Poland? Of course, you had the benefit of closing a Dutch operation, so a bit of the what I was looking for is a bit split here, causing the EUR 16 million EBITDA swing. Within that, how much of your fiber volume is now going into AI data center and defense-related demand, please?

Ruben Devos: Yeah. Good morning. I had three small questions left. The first one is actually on digitalization. You had about a swing of EUR 16 million at the EBITDA line, I think. Can you size a bit how much that came from the pricing that you point to in the press release and how that compared to maybe also the volumes out of China and Poland? Of course, you had the benefit of closing a Dutch operation, so a bit of the what I was looking for is a bit split here, causing the EUR 16 million EBITDA swing. Within that, how much of your fiber volume is now going into AI data center and defense-related demand, please?

Speaker #3: Yeah, good morning. I had three small questions left. The first one is actually on digitalization. You've had about a swing of €16 million at the EBITDA line, I think.

Speaker #3: And of course, you had the benefit of closing your Dutch operation. So a bit of the what I was looking for is a bit split here.

Speaker #3: Can you say a bit about how much of that came from the pricing that you pointed to in the press release, and how that compared to maybe also the volumes out of China and Poland?

Speaker #3: Causing the 16 million euro EBITDA swing. And then within that, how much of your fiber volume is now going into AI data center and defense-related demand, please?

Speaker #1: Maybe if I start with the second part of your question. What we refer to in our press release that basically the data centers AI, as well as defense, they are taking up a lot of capacity in the existing market.

Speaker #3: And of course, you had the benefit of closing your Dutch operation. So, a bit of what I was looking for is a bit split here.

Speaker #3: Causing the €16 million EBITDA swing. And then, within that, how much of your fiber volume is now going into AI, data center, and defense-related demand, please?

Speaker #1: It's not exactly the same as us deploying into these same two segments. We are very much focused when we talk about our fiber optic-related business on the AI part.

Speaker #1: Maybe if I start with the second part of your question. What we refer to in our press release is that, basically, the data centers, AI, as well as defense, are taking up a lot of capacity in the existing market.

Elling de Lange: Well, if I start, Ramon, with the second part of your question. What we refer to in our press release that basically the data centers, AI, as well as defense, they are taking up a lot of capacity in the existing market. It is not exactly the same as us deploying into these same two segments. We are very much focused when we talk about our fiber optic-related business on the AI part and less on the defense. As these two segments are growing so quickly, it basically means that the whole industry, which has been building up capacity for the telecom industry, is shifting gears towards completely new industries. That shift we have well taken on that transition. So we have a good deployment of the fiber optic portfolio into the data centers. That is driven by the North American market to a big extent.

Speaker #1: And less on the defense. But as these two segments are growing so quickly, it basically means that the whole industry, which has been building up capacity for the telecom industry, is shifting gears towards complete new industries.

Speaker #1: It's not exactly the same as us deploying into these same two segments. We are very much focused, when we talk about our fiber optic related business, on the AI part and less on the defense.

Speaker #1: That shift we have well taken on. That transition. So we have a good deployment of the fiber optic portfolio into the data centers. That is driven by the North American market due to a big extent.

Speaker #1: But as these two segments are growing so quickly, it basically means that the whole industry, which has been building up capacity for the telecom industry, is shifting gears towards completely new industries.

Speaker #1: And there we have seen that as this massive let's say capex programs by very big clients in data centers will consume capacity over the next couple of years.

Speaker #1: That shift, we have well taken on. That transition. So we have a good deployment of the fiber optic portfolio into the data centers. That is driven by the North American market to a big extent.

Speaker #1: That fiber prices have seen a positive move up. As capacity for certain fiber types is simply not there. I will shy away from specific margins and fiber prices, but an important part has to do of the improvement you refer to.

Speaker #1: And there we have seen that, as these massive, let's say, capex programs by very big clients in data centers will consume capacity over the next couple of years.

Elling de Lange: There we have seen that as this massive, let us say, CapEx programs by very big clients in data centers will consume capacity over the next couple of years, that fiber prices have seen a positive move up as capacity for certain fiber types is simply not there. I will shy away from specific margins and fiber prices, but an important part has to do of the improvement you refer to coming out of price improvement, basically margin again.

Speaker #1: Coming out of price improvement, basically margin gain.

Speaker #1: Fiber prices have seen a positive move up, as capacity for certain fiber types is simply not there. I will shy away from specific margins and fiber prices, but an important part has to do with the improvement you refer to.

Speaker #3: All right. And then regarding vision, actually a bit of a follow-up on Michael's question. Just I think you pointed to, yeah, you pointed to the semiconductor consumer electronics and battery sort of leading your growth of 12%.

Speaker #1: Coming out of price improvement, basically, margin again.

Speaker #3: Also APAC very strong. So I guess these three let's say end markets, they're quite cyclical and correlated, right? So what are these three combined as of a percentage of your vision sales?

Speaker #3: All right. And then regarding vision actually a bit of a follow-up on Michael's question. Just I think you pointed to yeah, you pointed to the semiconductor consumer electronics and batteries sort of leading your growth of 12%.

[Analyst]: All right, and then regarding Vision, actually a bit of a follow-up on Michael's question. I think you pointed to the semiconductor consumer electronics and batteries sort of leading your growth of 12%. Also APAC, very strong. So I guess these three, let's say end markets, they are quite correlated, right? So what are these three combined as a percentage of your Vision sales?

Ruben Devos: All right, and then regarding Vision, actually a bit of a follow-up on Michael's question. I think you pointed to the semiconductor consumer electronics and batteries sort of leading your growth of 12%. Also APAC, very strong. So I guess these three, let's say end markets, they are quite correlated, right? So what are these three combined as a percentage of your Vision sales?

Speaker #1: They are I would say for 3D more important than for the 2D segment. And they are creeping up towards close not half, but getting close to half of the 3D sales.

Speaker #3: Also, APAC is very strong. So I guess these three, let's say, end markets—they're quite cyclical and correlated, right? So what are these three combined as a percentage of your Vision sales?

Speaker #1: And as I said, less for 2D.

Speaker #3: Okay. All right. And just final question on Bolton acquisitions. I think you talked about you talked about the prospect of that in automation for some time.

Elling de Lange: They are, I would say, for 3D more important than for the 2D segment. And they are creeping up towards close, not half, but getting close to half of the 3D sales. And as I said, less for 2D.

Speaker #1: They are, I would say, for 3D, more important than for the 2D segment. And they are creeping up towards close, not half, but getting close to half of the 3D sales.

Speaker #3: Obviously, you've been very busy on the separation process. But is M&A sort of on hold, you'd say, until the separation is complete? Or would you still pursue sort of a vision Bolton during this process?

Speaker #1: And as I said, less for 2D.

Speaker #3: Okay, all right. And just a final question on bolt-on acquisitions. I think you’ve talked about, you talked about the prospect of that in automation for some time.

[Analyst]: Okay. All right, and just final question on both on acquisitions. I think you talked about the prospect of that in automation for some time. Obviously, you have been very busy on the separation process, but is M&A sort of on hold, you would say, until the separation is complete? Or would you still pursue a sort of a Vision bolt-on during this process?

Ruben Devos: Okay. All right, and just final question on both on acquisitions. I think you talked about the prospect of that in automation for some time. Obviously, you have been very busy on the separation process, but is M&A sort of on hold, you would say, until the separation is complete? Or would you still pursue a sort of a Vision bolt-on during this process?

Speaker #1: No. I think let's say this is part of the strategy. So if we are busy or not, we will keep on executing the strategy.

Speaker #3: Obviously, you've been very busy on the separation process, but is M&A sort of on hold, you'd say, until the separation is complete? Or would you still pursue sort of a vision bolt-on during this process?

Speaker #1: So this is on the agenda. And this is what we are following through. So there's no stoppage due to the fact that we do other things.

Speaker #1: That's not the way how we execute the strategy.

Speaker #3: All right. That's it from my side. Thank you.

Speaker #1: No, I think, let's say this is part of the strategy. So, whether we are busy or not, we will keep on executing the strategy.

Elling de Lange: No, I think, let's say this is part of the strategy. So if we are busy or not, we will keep on executing the strategy. So this is on the agenda, and this is what we are following through. So there is no stoppage due to the fact that we do other things. That is not the way how we execute the strategy.

Speaker #2: Thank you.

Speaker #3: Two more follow-ups, Martin and Dave, even in row. Can you refresh our memory with regards to networking capital as percentage of sales? Because it used to be that you had a target of 15 to 17%.

Speaker #1: So this is only the agenda, and this is what we are following through. So there's no stoppage due to the fact that we do other things.

Speaker #1: That's not the way we execute the strategy.

Speaker #1: 12 to 15.

Speaker #3: 12 to 15. I apologize. Is that still applicable after the divestments? I don't recall from the CMD that you actually gave a post-divestment target.

Speaker #3: All right, that's it from my side. Thank you.

[Analyst]: Right. That is it from my side. Thank you.

Ruben Devos: Right. That is it from my side. Thank you.

Jacqueline Lenterman: Thank you, Martijn.

Elling de Lange: Thank you, Martijn.

Speaker #2: Thank you.

Martijn van Dijke: Two more follow-ups, Martijn van Dijke, ABN AMRO. Can you refresh our memory with regards to net working capital as a percentage of sales? Because it used to be that you had a target of 15% to 17%.

Martijn den Drijver: Two more follow-ups, Martijn van Dijke, ABN AMRO. Can you refresh our memory with regards to net working capital as a percentage of sales? Because it used to be that you had a target of 15% to 17%.

Speaker #4: Two more follow-ups. Martin and Dave, ABN AMRO. Can you refresh our memory with regards to networking capital as a percentage of sales? Because it used to be that you had a target of 15 to 17%.

Speaker #3: Maybe you have, but I just don't remember it anymore.

Speaker #1: No. We have not given a specific one. But clearly, you see different let's say elements of working capital having more impact on the two segments.

Speaker #1: 12 to 15.

Speaker #4: 12 to 15. I apologize. Is that still applicable after the divestments? I don't recall from the CMD that you actually gave a post-divestment target.

Elling de Lange: 12% to 15%.

Martijn van Dijke: 12% to 15%. I apologize. Is that still applicable after the divestments? I do not recall from the CMD that you actually gave a post-divestment target. Maybe you have, but I just do not remember it anymore.

Martijn den Drijver: 12% to 15%. I apologize. Is that still applicable after the divestments? I do not recall from the CMD that you actually gave a post-divestment target. Maybe you have, but I just do not remember it anymore.

Speaker #1: So that's something which definitely will become more clear after the separation itself. Now it is a mixed basket. And as I said, I mean, we have not taken back the 12 to 15%.

Speaker #4: Maybe you have, but I just don't remember it anymore.

Speaker #1: No, we have not given a specific one, but clearly you see different, let's say, elements of working capital having more impact on the two segments.

Elling de Lange: No, we have not given a specific one, but clearly you see different, let us say, elements of working capital having more impact on the two segments. So that is something which definitely will become more clear after the separation itself. Now it is a mixed basket. As I said, we have not taken back to 12% to 15%, specifically currently, as Harm already explained, the impact of the order intake. That is a major issue when we look at the working capital level, which is 18% for the group.

Speaker #1: Specifically, currently, as Harm already explained, the impact of the order intake that is a major issue when we look at the working capital level, which is 18% for the group.

Speaker #1: So that's something which definitely will become more clear after the separation itself. Now, it is a mixed basket. And as I said, I mean, we have not taken back the 12 to 15%.

Speaker #3: Okay. And then my second question is, with regards to vision, you mentioned the 2D unit has merged its brands. That's possibly the first step.

Speaker #1: Specifically, currently, as Harm already explained, the impact of the order intake is a major issue when we look at the working capital level, which is 18% for the group.

Speaker #3: Can we expect more in the second half and into 2027 on the backend? So actual savings on the normal things when you integrate companies.

Speaker #3: Can you elaborate a little bit on that?

Speaker #4: Okay. And then my second question is with regards to vision. You mentioned the 2D unit has merged its brands. That's possibly the first step.

Martijn van Dijke: Okay. My second question is with regards to Vision. You mentioned that a 2D unit has merged its brands. That is possibly the first step. Can we expect more in H2 and into 2027 on the back end? So actual savings on the normal things when you integrate companies. Can you elaborate a little bit on that?

Martijn den Drijver: Okay. My second question is with regards to Vision. You mentioned that a 2D unit has merged its brands. That is possibly the first step. Can we expect more in H2 and into 2027 on the back end? So actual savings on the normal things when you integrate companies. Can you elaborate a little bit on that?

Speaker #1: Yeah. That's actually that's ongoing. We mentioned in the capital markets there in September that these steps are being taken. We have, of course, acquired in the last number of years quite a group of companies.

Speaker #4: Can we expect more in the second half and into 2027 on the backend? So, actual savings on the normal things when you integrate companies?

Speaker #1: And of course, from alignment in terms of R&D roadmaps, etc., we've taken further steps towards integration of these agenda topics across some of the organizations.

Speaker #4: Can you elaborate a little bit on that?

Speaker #1: Yes, that's actually ongoing. We mentioned in the capital markets there in September that these steps are being taken. We have, of course, acquired quite a group of companies over the last number of years.

Elling de Lange: Yeah, that is actually ongoing. We mentioned in the Capital Markets Day in September that these steps are being taken. We have, of course, acquired in the last number of years quite a group of companies. Of course, from alignment in terms of R&D roadmaps, et cetera, we have taken further steps towards integration of these agenda topics across some of the organizations. That, of course, helps on one side the OpEx level, but clearly it also improves commercial opportunities for the group, and that is also where the benefit can be seen.

Speaker #1: And that, of course, helps on one side the OPEX level, but clearly it also improves commercial opportunities for the group. And that's also where the benefit can be seen.

Speaker #1: And of course, from alignment in terms of R&D roadmaps, etc., we've taken further steps towards integration of these agenda topics across some of the organizations.

Speaker #3: And would you say that you've already realized a part of it or just the majority still to come?

Speaker #1: But as the majority on that, we have done steps but we are not complete.

Speaker #1: And that, of course, helps on one side at the OPEX level, but clearly it also improves commercial opportunities for the group. That's also where the benefit can be seen.

Speaker #3: Got it. Thank you.

Speaker #2: Yeah. Thijs also still one follow-up on the offshore wind projects. You probably have seen that in the UK in January there was an allocation round being awarded.

Speaker #4: And would you say that you've already realized a part of it, or is the majority still to come?

Martijn van Dijke: And would you say that you have already realized a part of it, or is the majority still to come?

Martijn den Drijver: And would you say that you have already realized a part of it, or is the majority still to come?

Speaker #1: What is the majority on that? We have done steps, but we are not complete.

Elling de Lange: But as the majority on net, we have done steps, but we are not complete.

Speaker #2: I think most of the projects have been won by RWA. Is RWA now actively tendering with TKH on the cables? Is that part of the 92 projects you're mentioning?

Speaker #4: Got it. Thank you.

Martijn van Dijke: Got it. Thank you.

Martijn den Drijver: Got it. Thank you.

Speaker #3: Yeah, there is also still one follow-up on the offshore wind projects. You probably have seen that in the UK, in January, there was an allocation round being awarded.

Thijs Olthof: Yeah. There is also still one follow-up on the offshore wind projects. You probably have seen that in the UK in January, there was an allocation round being awarded. I think most of the projects have been won by RWE. Is RWE now actively tendering with TKH on the cables? Is that part of the 92 projects you are mentioning?

Tijs Hollestelle: Yeah. There is also still one follow-up on the offshore wind projects. You probably have seen that in the UK in January, there was an allocation round being awarded. I think most of the projects have been won by RWE. Is RWE now actively tendering with TKH on the cables? Is that part of the 92 projects you are mentioning?

Speaker #1: What do you expect on arms?

Speaker #2: Sorry.

Speaker #1: Yeah. We cannot disclose of course specific negotiations with customers.

Speaker #3: I think most of the projects have been won by RWA. Is RWA now actively tendering with TKH on the cables? Is that part of the 92 projects you're mentioning?

Speaker #2: Yeah. But is RWA part of the 92 projects? Because you mentioned 92 projects, I assume that are commercial people of TKH are talking to these companies.

Speaker #2: What do you expect on that answer? Yeah, we cannot disclose, of course, specific negotiations with customers.

Alexander van der Lof: What do you expect on answer?

Speaker #1: I believe I can say yes. Yeah.

Thijs Olthof: Sorry?

Tijs Hollestelle: Sorry?

Alexander van der Lof: We cannot disclose, of course, specific negotiations with customers.

Speaker #2: Yeah. But 92 projects, I mean, if I basically do a rough rundown of the actual projects out there, yeah, I do not get to that amount.

Speaker #3: Yeah, but is RWA part of the 92 projects? Because you mentioned 92 projects, I assume those are commercial people from TKH talking to these companies.

Thijs Olthof: Yeah, but is RWE part of the 92 projects? Because you mentioned 92 projects. I assume that their commercial people of TKH are talking to these companies.

Tijs Hollestelle: Yeah, but is RWE part of the 92 projects? Because you mentioned 92 projects. I assume that their commercial people of TKH are talking to these companies.

Speaker #2: I mean, are you also including Vietnam and Korea? Taiwan?

Speaker #1: No. No. No. No. We are focusing on Europe. So these are all European projects. I believe at this point of time, there's no Asian project in Taiwan.

Speaker #2: I believe I can say yes. Yeah.

Alexander van der Lof: I believe I can say yes, sir. Yeah.

Speaker #3: Yeah, but 92 projects—I mean, if I basically do a rough rundown of the actual projects out there—yeah, I do not get to that amount.

Thijs Olthof: Yeah. But 92 projects, if I basically do a rough rundown of the actual projects out there, I do not get to that amount. Are you also including Vietnam and Korea?

Tijs Hollestelle: Yeah. But 92 projects, if I basically do a rough rundown of the actual projects out there, I do not get to that amount. Are you also including Vietnam and Korea?

Speaker #1: Could be one or two, but I believe I'm not sure there. But the majority is in Europe, including the UK.

Speaker #3: I mean, are you also including Vietnam and Korea? Taiwan?

Speaker #2: Yeah. So and then the 92 projects also include projects which are years from.

Speaker #2: No, no, no. We are focusing on Europe, so these are all European projects. I believe at this point in time there's no Asian project in Taiwan.

Alexander van der Lof: No. We are focusing on Europe. So these are all European projects. I believe at this point of time, there is no Asian project in Taiwan. Could be one or two, but I am not sure there. But the majority is in Europe, including the UK.

Speaker #1: Yeah. Of course.

Speaker #2: From a call center right now.

Speaker #1: Yeah. Yeah.

Speaker #2: But then again, in theory, could you be in a tender with RWA at the moment? Or was that already the case? Let's say in 2025?

Speaker #2: It could be one or two, but I'm not sure there. However, the majority is in Europe, including the UK.

Speaker #3: Yeah. So, and then the 92 projects also include projects which are years from, from a call center right now.

Thijs Olthof: Yeah. The 92 projects also include projects which are years from-

Tijs Hollestelle: Yeah. The 92 projects also include projects which are years from-

Speaker #1: Yeah. It is too specific about the customer. And we have a very high market share. We have a number one position. So I believe that gives you already a good reference where we are active.

Alexander van der Lof: Yeah, of course.

Thijs Olthof: from a consent right now.

Tijs Hollestelle: from a consent right now.

Speaker #2: Yeah. Yeah.

Alexander van der Lof: Yeah.

Speaker #3: But then again, in theory, could you be in a tender with RWA at the moment, or was that already the case, let's say, in 2025?

Thijs Olthof: But then again, in theory, could you be in a tender with RWE at the moment, or was that already the case, let's say, in 2025?

Tijs Hollestelle: But then again, in theory, could you be in a tender with RWE at the moment, or was that already the case, let's say, in 2025?

Speaker #3: Okay. Yeah. Thank you. Okay.

Speaker #2: Yeah, it is too specific about the customer. And we have a very high market share. We have a number one position. So I believe that already gives you a good reference for where we are active.

Alexander van der Lof: Yeah. It is too specific about a customer, and we have a very high market share. We have a number one position. So I believe that gives you already a good reference where we are active.

Speaker #1: Okay. No questions anymore. Then I'd like to thank you all for the good questions. And also in the webcast of the analyst and a big thank you for attending this important half-year update.

Speaker #3: Okay. Yeah. Thank you.

Thijs Olthof: Okay. Yeah. Thank you.

Tijs Hollestelle: Okay. Yeah. Thank you.

Speaker #4: Okay.

Speaker #1: For me, it will be the last time I will be presenting the results. So next year, you have to cope with my successor. I like to thank you all for, let's say, your commitment to TKH and especially also the audience and shareholders committed to TKH and I hope, of course, to see you often again, perhaps in a different role if it would be an IPO with electrification, I might see you back.

Speaker #2: Okay, no questions anymore. Then I'd like to thank you all for the good questions, and also those joining via the webcast or as analysts. A big thank you for attending this important half-year update. For me, it will be the last time I will be presenting the results.

Alexander van der Lof: Okay. No questions anymore. Then I would like to thank you all for the good questions, and also in the webcast of the analyst. A big thank you for attending this important half-year update. For me, it will be the last time I will be presenting the results. Next year you have to cope with my successor. I would like to thank you all for, let's say, your commitment to TKH, and especially also the audience and shareholders committed to TKH. I hope, of course, to see you often again, perhaps in a different role. If it will be an IPO with Electrification, I might see you back. If not, then again, a big thank you for your commitment to TKH and the relationship we-

Speaker #2: So next year you will have to cope with my successor. I would like to thank you all for, let's say, your commitment to TKH, and especially also the audience and shareholders committed to TKH. I hope, of course, to see you often again—perhaps in a different role. If there would be an IPO with Electrification, I might see you back.

Speaker #1: If not, then again, a big thank you for your commitment to TKH and the relationship we had. Thank you again and we close the meeting with this.

Browse all earnings call transcripts

Q2 2026 TKH Group NV Earnings Call

Request TrialDemo

TKH

Earnings