Speaker #1: For our 9-month call, 2026, as usual. I'm presenting in this call together with our CFO, Philippe Vienney. Let's have first a look at the agenda.
Speaker #1: Thank you. As usual, we at first want to talk about our achievements, then followed by the financial results presented by Philippe, and then I will talk about the outlook and the key takeaways.
Speaker #1: Next one. So let's first talk about achievements. As you can see, we have on the sales side, on the left side, achieved a constant of X, a sales growth year over year of 1%, reaching 5.925 billion EUR year-to-date after 9 months.
Speaker #1: This is split into our electronic sales, year-over-year up by 6.8%. We have reached now 2.543 million EUR, specifically driven by our radar technology and our energy management products which contributed overproportionally to that.
Speaker #1: On the lighting side, the sales is down by 5.7% year over year, now to 2.535 billion EUR. This is specifically affected by the phase-out of programs and lower call-offs.
Speaker #1: In our third business group, lifecycle solutions, the sales is up year-over-year by 4.8%. We have achieved now 763 million EUR, specifically driven by a strong special OE business.
Speaker #1: You know this is our commercial vehicles and off-highway business. So reported sales is year-over-year broadly flat at 5.883 billion EUR. Let me then move to OI margin.
Speaker #1: In the middle, we have achieved, after 9 months, an OI margin at 5%. We are seeing at worst volume and mixed effects and, on the other side, we are facing on the cost inflation side a continue that is influencing our margins.
Speaker #1: We have specifically increasing costs on the PCB side and the semiconductor side, and this is an intensified pressure across the whole value chain. On the lighting business, we were affected in Q3 by the launch of some new complex products.
Speaker #1: We are actually focusing on reimbursements for the material inflation, and we are intensive discussions here with our customers and we have further cost measures in place to counter the impact I described.
Speaker #1: On the R&D side, we were able to save our R&D expenses. That brought our ratio down by around 46 basis points, now to 9%.
Speaker #1: Moving now to cash. Net cash flow was negative after 9 months, on a level of minus 99 million, versus prior year 9 months 68 million positive.
Speaker #1: This led us to a net cash flow to sales ratio of minus 1.7% versus positive 1.2% prior year. We have a continued CAPEX governance and a clear CAPEX management in place.
Speaker #1: On the other side, our net cash flow was impacted by increased restructuring cash out and higher level inventories, after 9 months. On the other side, I think the net cash flow development follows a typical seasonality, which is always bringing a pressure on cash flow after Q3.
Speaker #1: Yeah, with that, please move to the next slide. Let's have a look at order intake. We have continuously a strong order intake in the course of the year, and this confirms clearly our consistent execution of our Ignite strategy, which we have announced earlier this year.
Speaker #1: If we look a little bit more in detail, what we can see is that the after 9 months, we have out of our overall order intake, 66%, so two-thirds, achieved in Asia-Pacific and NSA, so North and South American region.
Speaker #1: So that means two-thirds of the order intake is outside of Europe and that shows clearly that we are executing our strategy to diversify our regional mix, and have here, as well as significant increase in comparison to the same time last year.
Speaker #1: If we look a little bit to the right side of the blue part of the chart, we see that nearly 1/4, so precisely 24% of our order intake we achieved with Chinese OEMs or OEMs out of the GICA region, so Japan, India, Korea, and ASEAN.
Speaker #1: So that, again, confirms that we are executing our strategy of specific targeting growth with Chinese and Asian OEMs, and here the share increase as well in comparison to the same period of time last year.
Speaker #1: As we have announced, electronics is our growth driver. It's as well there for positioned in the growth segment in our strategy. And we confirm that 58% of all our orders which we could take in in the first 9 months are coming out of the electronics business group.
Speaker #1: So that means we are here with the strong order intake confirm our growth strategy. Let me now move a little bit to the right side, to look a little bit to some highlights of order intakes after 9 months in this financial year.
Speaker #1: In electronics, we could get a mid-three-digit million order from highly integrated energy core solution, and this from two international OEMs in Americas and in Europe, with SOPs in 27 and in 28.
Speaker #1: So this is again confirming our strategy that we have as one of our innovations integrated energy core solutions, and here we get now the confirmation with orders from the customers.
Speaker #1: Another topic in electronics are two major series orders from leading Chinese OEMs for our latest generation of 77 gigahertz radars with the SOP already next year.
Speaker #1: And this confirms our strategy to grow with our radar technology globally and as well penetrating further into the Chinese market, and this is now confirmed with those two orders.
Speaker #1: Let me now move to lighting as well. Here we have brought two examples of order intake today. On the one side, order intake of a headlamp from a premium OEM from the US, and the Chinese for the US and the Chinese market with an SOP in 2028, or another example is a headlamp, a CBL, and a rear lamp order for several midsize car models from a volume OEM for the European and the US market with the SOP in 28 and 29.
Speaker #1: So you see the diversification as well as working in lighting and as well not only the diversification on the customer side as well the diversification moving into the volume segment is working out and is executing our strategy.
Speaker #1: In regard of lifecycle solutions, as well here two examples. Sorry for that. On the one side, we got a award from a commercial vehicle business for electronics we received here two awards from European Truck OEMs and one additional award for the Indian market with SOPs in 26 and 28.
Speaker #1: So as well here the movement into electronics in our SOE business is developing. Sorry. And on the other side, we are moving further into the Indian market with electronics for commercial vehicles, which is another success story.
Speaker #1: In addition, we got another award for lighting in commercial vehicles for a crossover SUV from an US OEM for the US market with an SOP in 26 already.
Speaker #1: So there is a significant step in the right direction as well in that regard. So then let's move to the next slide, please. Those bringing us to financial results.
Speaker #1: And with that, I'm handing over to Philippe Vienney, to present that to us.
Speaker #2: Oh, yeah. Thank you. Good evening to all. So looking at the sales, we continue to deliver organic sales growth in 9 months. We are at plus 1%, excluding exchange rate.
Speaker #2: Versus the market, which was so yeah, clearly we see the strategy orientation strategic orientation specifically in electronic is fruitful and positive. So electronic is maintained by the strong growth momentum, especially as we said, by radar, energy management, and body electronics.
Speaker #2: And if we look at energy management, it would be mainly coming from low voltage DC-DC and converter and intelligent battery sensors. Which are contributing a lot to the increase in terms of sales for electronics.
Speaker #2: In lighting, we are selectively ramping up programs across region, but partially offsetting only the phase-out of existing program and lower customer call-offs. And lifecycle, we continue also to enjoy some growth supported by strong special OE business, as mentioned, and aftermarket business as well.
Speaker #2: So basically, electronic and lifecycle continue to drive the group positive organic sales development for the 9 months. So now looking at the next slide on the sales per region, the sales per region, and.
Speaker #1: Hello, Mr. Speaker. To understand you, at least for me.
Speaker #2: Maybe I will now is it better now?
Speaker #1: Now, let's try it again, yeah? Maybe you repeat the last two sentence.
Speaker #2: Okay. Yeah, I was saying that we are outperforming the market globally by 1.70 basis points, and electronic is the key driver for this outperformance.
Speaker #2: So in Europe, the sales growth is at 1.6%, so particularly strong with the radar, and as well special OE and aftermarket. In North America, we achieved 260 basis points performance versus the market, where the market we see the market declining by 0.5, and this is reflecting also strong electronic sales momentum despite some headwinds from some program phasing out in lighting.
Speaker #2: In Asia-Pacific, performance is aligned with the market. So we see a strong energy management business in Asia-Pacific, and selective launches in China where the market was characterized by a strong negative development, China itself is market is at minus 5.5%.
Speaker #2: So now looking at the performance per business group, so if we take electronic first, so electronic is showing strong growth in terms of sales, 7% versus last year at 2.5 billion.
Speaker #2: Again, radar, as we said, ramp up and new launches in Europe. And energy management are the key contributor, Asia-Pacific, we have strong energy management sales as well, which has contributing to this growth in terms of sales.
Speaker #2: So and this is offsetting the weak market environment in China. Operating income for electronic is growing by 5% at 205 million, and it remaining stable versus last year at 7.6%.
Speaker #2: So here we have the product mix and some material cost, which are putting pressure on the margin, and limiting the margin benefit from our sales growth.
Speaker #2: But we are also countering this pressure with cost measures and we are reducing our R&D expenses by lower use of external services. We are also benefiting from the structural adjustment we have started, and we also have the same effect on the administrative costs which are also going down for electronics.
Speaker #2: Looking at lighting now. So lighting, we have external sales going down by 5.7%. So at 2.55 billion of sales. Which is reflecting again program phase-out and lower customer call-offs.
Speaker #2: So this was expected, and we also have the seasonal development of the regional product volume. So this decrease in terms of sales was again expected for the year.
Speaker #2: So this directly impact the operative margin, which fails to minus 2 million with an operating margin of minus 0.1. So here we also had to manage the volume decrease, but also complex launches as I mentioned earlier as well.
Speaker #2: And some additional costs linked to the inflation and especially on plastics. Which are putting some more pressure on the profitability. So we are also working on improvement and savings.
Speaker #2: We are also lowering external spending and headcount in R&D, and we are accelerating the rollout of the lighting transformation program, which is expecting to bring visible impact in OI for the last quarter.
Speaker #2: So for lighting, we continue to stick to our commitment to improve the margin and coming back to the around 3% until 2028 with a comparable level of what we were achieving in 2025.
Speaker #2: Lifecycle now, next page. Also continue to show sales increase with 4.8% increase, sales reaching 763 million. Here we have special OE, which is remaining a growth driver.
Speaker #2: We supported by recovering the money in agriculture, construction, machinery, and truck and bus. Aftermarket is also showing a growing path. So which is also contributing to the growth.
Speaker #2: And the workshop business is also stabilizing which is also a positive momentum. So here the higher volume is driving a favor with including favorable product mix is driving the positive and increase on the operating margin, going to 11.5% versus the 10% of last year.
Speaker #2: Now looking at the P&L, so food P&L, we would like to stress a couple of points here. So earning before interest and tax increase by 13% at 236 million.
Speaker #2: And the net income also rose by close to 23% to 133 million. So the key driver for this EBIT increase is basically reduction in our restructuring cost to around 35 million compared to 111 million.
Speaker #2: So we have booked less restructuring cost this year. And at the same time, we have some efficiency measures and cost saving that are continuing to support the earnings.
Speaker #2: And we also see the benefit of the restructuring program on the R&D side and SG&A, where we are also lowering our spend in percentage of sales.
Speaker #2: Now going to the cash flow. So as said, we are posting use of cash of 99 million versus 68 million last year for the 9 first months.
Speaker #2: So the cash flow is following a typical seasonal pattern. But this year we also have some effects on the working capital and restructuring, which is cash out, which is higher than what we have spent last year.
Speaker #2: So first coming to the working capital, we have built some additional impact of the
Speaker #1: Philip, now you broke up again. Can you repeat the last two sentences, please, again?
Speaker #2: Yeah. So our working capital, we have increased our inventories due to system increase and also to secure our products. And we also have safeguard our launches with additional inventories.
Speaker #2: On the receivable side, we also have less contribution from the factoring than we had last year, which is also contributing to deterioration of the working capital.
Speaker #2: And again, as I said, we have more cash out on restructuring we had last year in the 9 first months. This is offset partially with better CapEx governance, where we see the CapEx going down and representing a total of 4% of our sales.
Speaker #2: So all this discipline should also help us to improve the Q4 cash. We are also expecting to improve the working capital again in Q4 with close monitoring on the inventory optimization.
Speaker #2: We are also expecting some cash in from the customer on sales reimbursements. So that should also benefit to the contribution to the cash. And we also have less restructuring cash out in Q4 than what we have seen in the 9 first months of the year.
Speaker #2: With that, I'm finishing the financial presentation. And I hand over to Peter again.
Speaker #1: Yeah. Thank you very much, Philip. That brings us to the outlook. As chapter 3, next chart, please. So let's have at first a look to the market.
Speaker #1: So we are actually expecting for global vehicle production that we will see a decline of 1.7% year over year. So we expect this year a total light vehicle production of 91.6 million vehicles in comparison to 93.1 in last year.
Speaker #1: After 9 months, we have now seen 67.8 million vehicles produced, which is a reduction of 70 basis points in comparison to last year. And what we are seeing right now that in Q4, this reduction of global vehicle production will accelerate.
Speaker #1: So we are expecting the fourth quarter on 23.8 million light vehicle production. Which is minus 4.2% in comparison to the last year. And that is specifically driven by the Chinese market, which is experiencing a reduction of minus 8.4% in the forecast for Q4.
Speaker #1: If you look a little bit to the regions on the right side, we see Americas as well as Asia-Pacific, rest of the world being down in comparison.
Speaker #1: To the year before, by minus 0.8 in Americas and minus 2.6 in Asia-Pacific, rest of the world. Europe a little bit up by 0.7%.
Speaker #1: But still on a level of just 17.2 million units. Next one. So that brings us to our company outlook. So despite the market headwinds, coming from both from volumes and from costs, we are confirming our outlook.
Speaker #1: For the full year. But with some further specification within the ranges. So if we are looking to our outlook, again, that is for sure based on the mentioned global vehicle production assumed on a level of 91.6 million light vehicles.
Speaker #1: We see on the sales side, we had up to now a guidance in the market between around 7.4 to 7.9 billion euro. We confirm that guidance and specify that our sales will be in the upper half of this range.
Speaker #1: Coming to OI margin, we confirm our guidance between around 5.4 to 6% of sales. But now specifying that we will be at the lower end of this range.
Speaker #1: And in regard of net cash flow, we just confirm our guidance with at least 1.8% of sales. So the specification of the OI margin on the lower end of the range has the following reasons.
Speaker #1: We are seeing an increasing impact of material cost inflation. We are negotiating this actually with our customers and assuming here compensation until end of the year.
Speaker #1: But we are actually in the middle of the negotiations. We see a pretty uneven volume development with a negative customer mix and as mentioned before, we have additional costs for complex launches in lighting, which we have to compensate with our measures.
Speaker #1: So if we look to the remainder of the year, where do we focus on as key deliverables for the upcoming two months? We are working on recovering of the material cost inflation, as mentioned, in close discussion and negotiation with our customers.
Speaker #1: We have a rigorous cash and working capital management in place to achieve our cash flow guidance. And we have to work on our lighting transformation program execution.
Speaker #1: Including an improvement of the launch management. So these measures and the execution of them are our clear focus for the remaining months of the year.
Speaker #1: Next one. Overall, and I would like to confirm that our introduced Ignite strategy is in full execution mode. With a clear discipline and that is helping us in the challenging market environment.
Speaker #1: So as introduced before, Ignite strategy has three pillars, where we as HELLA working on to deliver our strategy. On the one side, best in class performance.
Speaker #1: Where we are working on ensuring and enhance our competitiveness. And to deliver our financial targets. Where we focus on the recovery of cost inflation in close alignment with our customers.
Speaker #1: And with our lighting transformation program. Where we are working on the turnaround of our lighting business. On the business transformation side, we are executing the diversification of our customer base.
Speaker #1: And intensify our business outside of Europe I have shown to you today the acquisition successes and the distribution of them are showing clearly that we are on a good path to execute as well this topic.
Speaker #1: And we align further our portfolio with the major mobility trends like automated driving, electromobility, and software-defined vehicle architectures. I have shown to you and they highlights of the acquisition today two examples for that.
Speaker #1: So we have received further orders for our radar business, executing the automated driving trend. And we have received the power management awards in the integration units.
Speaker #1: Where we are innovations in the electromobility trend. Third pillar is invigorating culture in our Ignite strategy. Here we are working on speed up the decision making in our organization and developing processes for our expanding non-European regions specifically to give them the decision authority and empower them in the related need to be successful with customers outside of Europe.
Speaker #1: We are here in a very good execution and we have started actually in the company a project which is called Blueprint. Where we are adjusting our target operating model accordingly.
Speaker #1: Next one. Yeah, that brings me to the fourth part of our presentation today, the key takeaways. So key takeaways after nine months. If we look to our development without the within the market, we continuously outperform the market.
Speaker #1: We have a sales growth in a declining market. That means our strategic orientation, our strategic direction is confirmed and with the significant acquisition as well in electronics, we confirm here for the future the growth.
Speaker #1: And as well for this year the growth with the figures after nine months. We had a very successful order intake which is fully consistent with the execution of our Ignite strategy.
Speaker #1: As explained our OI margin suffered from volume and mix effects as well as from inflation. Cost pressure. And from the launches I explained. We have further intensified our cost reduction measures.
Speaker #1: And we are in continuous and intensive negotiations with our customers in regard of pass through of the additional material cost inflation. Cash generation is following a typical seasonality.
Speaker #1: And we are expecting further improvements of our performance in Q4. Based on measures, based on successes of the customer inflation negotiation and based on the further grip of our lighting transformation program.
Speaker #1: We confirm our outlook despite the market headwinds. We have explained today. So we have confirmed the outlook with some further specification. Where we are saying the sales outlook with around 7.4 to 7.9 billion is now being expected on the upper half of the range.
Speaker #1: In regard of OI margin where we have an outlook between five around 5.4 to 6%. We specify now that we expect that at the lower end of the range.
Speaker #1: Net cash flow to sales with 1.8% is confirmed. And we are working on the key deliverables for the coming months which is recovery of the cost inflation.
Speaker #1: With our customers rigorous cash and working capital management to achieve our net cash targets. And the execution of our lighting transformation program and the launch management including our cost management.
Speaker #1: In regard of our strategy we are in full execution mode of our Ignite strategy. For our long-term success. With that we see ourselves well positioned for the future to benefit from the major trends in automotive and with that capture the growth.
Speaker #1: We are amplifying now our Ignite strategy execution. In regard of best in class performance cause of the intensified competition and we have the right measures in that regard in place.
Speaker #1: We ensure and enhance further our competitiveness through our global cost structure improvements and through the uplift of our functional excellence. And we are working on the turnaround of our lighting business with execution of lighting transformation program.
Speaker #1: Transferring our business and diversify our customer base and the acquisition success is confirming that. And we are further transforming our product portfolio in alignment with the major trends.
Speaker #1: And last but not least, we execute invigorating culture by simplifying our structures and processes and with that empower our regions and speed up the decision making.
Speaker #1: Yeah, with that we are coming to an end of the presentation. And would now if you go to the next slide. Or we can as well stick with that, that's okay.
Speaker #1: Would now open the floor for questions.
Speaker #2: Thank you very much. The first question is from Christoph Laskawi from Deutsche Bank. The floor is yours.
Speaker #3: Good evening. Thank you for taking my questions. The first one would be if there have been any exceptional negatives in Q3. Like one time items that you had to book and also if you would basically say that the launch cost or the cost of the complex launches in lighting are digested fully in Q3 or if they will repeat in the fourth quarter.
Speaker #3: And then the second question would be on the Q4, the implicit Q4 margin that you guide which is around 7%. With Q3 at 4.2, obviously there is quite a substantial step up needed in the final quarter.
Speaker #3: Could you help us bridge from the four to the seven? Is this essentially the cost recoveries that you seek to get from the OEMs?
Speaker #3: Because costs I think keep on increasing, the production volatility is not improving in Q4. So that there will be further sequential headwinds. If you could basically help us bridge the around three percentage points of margin that you target for Q4 and how you get there.
Speaker #3: That would be appreciated. Thank you.
Speaker #1: Yeah, thank you very much for your questions Christoph. I propose first questions the exceptional negative bookings in Q3 maybe Philippe you want to talk about that and then I'm talking about the launch cost.
Speaker #4: Yeah, so in Q3 we had some headwinds on the material cost because we start to have the impact of the material cost increase but the recovery is still to be negotiated as mentioned by Peter and what we are working on it for Q4.
Speaker #4: So all the negative is impacting Q3. Positive will come in Q4. So in a way it's a time of one time I would say not one time but impacting negatively the Q3.
Speaker #4: Then the second topic is the launch cost which are also impacted strongly the Q3. And Peter will come back on this for Q4. But this is in nature what I could mention for Q3.
Speaker #1: Yeah. Yeah, so in regard of launch cost the majority is digested in Q3. There is a little bit in Q4 but the majority is digested.
Speaker #1: Question number two, what is driving the 2.8, 3% improvement of margin Q4 versus Q3? Yes, Christoph, you're right. Material compensation on the customer side is one of the drivers.
Speaker #1: But there is as well further improvement assumed on the cost side. In where we have a clear measures in place and as you know usually Q4 is a strong quarter in comparison to Q3.
Speaker #1: So overall it's a mix, strict cost management, inflation recovery, on the customer side where we are in intensive negotiations and some year-end performance which is driving then us to this improvement need to keep our guidance.
Speaker #3: Thank you. And one follow-up if I may just looking into early 27. I appreciate you don't want to give 27 guidance today. But if we think about the start to 27 and you just highlighted that some contract basically kicked in or cost increases kicked in in Q3.
Speaker #3: And will be compensated in Q4. Do we should we expect other basically sourcing contracts to roll over early next year where there's a lack of compensation in Q1?
Speaker #3: So should we basically prepare ourselves for a pretty soft start in earnings terms into 27 before you get the recoveries or is this too early to tell?
Speaker #1: That is a very difficult question Christoph to be honest. You know how automotive is. We are in intensive discussions actually with our customers at first to settle 26 in regard of material inflation.
Speaker #1: You know the principle market development is as well showing that we need to expect for 27 that on the material side specifically PCBs and semiconductors we need to expect a further challenging year.
Speaker #1: That's why we address already now at the customer side that we have to get as well compensations for 27. But in the nature of the game it is to be expected that we will have a soft Q1 because it takes usually time to come here to conclusions for the full year.
Speaker #1: So it cannot tell you 100% how this will happen but according to experience it takes some time until finding agreements with the customers for 27.
Speaker #3: Understood. Thank you very much.
Speaker #1: Thank you.
Speaker #2: Thank you very much. The next question is from Thomas Besson from Kepler Scherberold. Please go ahead.
Speaker #4: Thank you. Good evening. A few questions as well please. Can you share with us if possible the amount of in euros the amount of memories and PCBs you're purchasing either in 2025 or in 2026 and the delta of cost for both PCBs and memories please.
Speaker #4: And are you assuming that you're going to recover the delta the 26 delta in 26 or are you assuming that part of that is going to be recovered in 27?
Speaker #3: Yeah, I can take that. We are not sharing numbers in regard of PCBs and in regard of semiconductors. But to clarify that Thomas, we are not using much memory.
Speaker #3: We are using usually control chips in our environment. And yes, there is for sure an increase of pricing in comparison to 2025. But we are not sharing such figures the only topic I can mention here is that we are assuming in our guidance and forecast for 2026 that we are getting the related inflation material inflation reimbursements from our customers for those units in the course of the year.
Speaker #4: Okay, clear. Thank you very much. Second question, a bit like Christoph's question on your big jump necessary in Q4 for AI margins. You also need a big jump in free cash flow to make your number.
Speaker #4: So I understand working capital what a head win becomes a tail win. Can you help us and put some figures on that because I mean you've already crushed CapEx further in the first nine months.
Speaker #4: So what exactly are you planning to get from a big double digit million negative to a triple digit positive in Q4? So you're supposed to produce a very strong Q4 free cash flow.
Speaker #3: Yeah. Philip, you want to start on that?
Speaker #1: Yeah, I can start.
Speaker #3: Yeah, first maybe it comes it has a link with the seasonality because last year we had more or less a very similar profile even if Q3 was positive but Q4 we generated also a very strong cash in the last quarter.
Speaker #3: So it's something which is not totally unusual. In terms of seasonality. So now coming to more details, yes, we are planning to drastically decrease the inventories and there is a plan to increase by the end of October to get the make sure we have the cash impact by year-end.
Speaker #3: So this is the first item. Second item was, as I said, we're going to we're going to have normally a sales reimbursement collection much higher in Q4 than what we have enjoyed or get so far.
Speaker #3: So this will also help the Q4. Restructuring we have spent a lot of restructuring in year to date. It's something around 90 million and we are not expecting to have such a high or not the same trend for Q4.
Speaker #3: So this will also help us to have a better cash in Q4. So it's basically the main items which would help us. Plus the fact that we are also getting a higher EBITDA as you have mentioned in Q4.
Speaker #3: Which is also helping the cash for Q4.
Speaker #4: Thank you very much, clear. Last question if I may. Thanks for giving us the details of how your orders effectively split by region business and so on.
Speaker #4: Can you share with us the orders in proportion to your nine months revenues or it's something you do only annually?
Speaker #1: Which we do only annually.
Speaker #4: Okay. Great. I think that's it for me. Thank you very much.
Speaker #1: Thank you, Thomas.
Speaker #2: Thank you very much. At the moment there aren't any other questions in the line. I'll repeat if you would like to ask a question.
Speaker #2: Please press a star nine and pound key on your telephone keypad. You could also use the dial-in function in the webcast and raise your hand if you would like to ask a question by phone.
Speaker #2: I'll wait a moment to see if anyone raises any questions. There aren't any questions in the line. With that, I would like to hand over to your host again, Professor Peter Laier for closing remarks.
Speaker #4: Thank you very much, operator. Yeah, thank you very much. For participating on a Friday evening thank you very much for your very good questions I think we have shown to you today that in a challenging environment we are performing well and executing our Ignite strategy for sure there is a lot of work to do until the end of the year in regard of all the measures which we have in place and as well the close negotiations with our customers for the material inflation compensation.
Speaker #4: We have shown to you today our execution plan in regard of that and looking very much forward then to report to you our year-end figures and how we have achieved it but for sure all that need to be executed now and there's a lot of work in front of us.
