Speaker #1: Will also cover projected further AI growth, our sustainability achievements, and the dividend proposal. After that, we will start our Q&A session. The accompanying slideshow for the call is available at infineon.com/slides, and we will provide a PDF with Johannes and Sven's introductory remarks in the course of the call on our website, namely infineon.com/investor.
Speaker #1: There you also will find a recording of this conference call, our press release, as well as our investor presentation. And now, Johan, over to you.
Speaker #2: Thank you, Alexander, and good morning, everyone. Let's begin with a little retrospective of our very eventful 2026 fiscal year. Twelve months ago, we predicted only a gradual, uneven recovery.
Speaker #2: In hindsight, cyclical and structural growth momentum has strengthened and broadened strongly. The difference in revenue between our weakest and our strongest quarter amounted to more than 1 billion euros.
Speaker #2: AI drove unprecedented structural growth, and with 1.7 billion euros, we again more than doubled our revenue in this area. And the convergence of structural growth and upcycle is upcycle is continuing.
Speaker #2: Driven by AI in its many shapes and forms, power infrastructure as well as automotive, where electrification and software-defined vehicles are strong secular drivers.
Speaker #2: To prepare Infineon optimally for the coming high-growth phase, we executed successfully on major pillars of our strategy in 2026. We opened our new smart power fab in Dresden at the best possible point in time.
Speaker #2: We shaped our business portfolio further through acquisitions and divestitures, the same way as we continue to streamline our manufacturing footprint further. Since 2022, we went from 20 sites down to 13.
Speaker #2: To further strengthen our application focus, as well as to improve the speed and agility of our organization, we adopted a new, more application-centric divisional setup.
Speaker #2: Overall, we feel very well positioned for significant, profitable growth in our just-started 2027 fiscal year. But before we come to our outlook, let's look back at the recent past.
Speaker #2: The fourth and final quarter of our 2026 fiscal year saw record revenues of 4 billion 706 million euros, up 13% sequentially. The year-over-year growth rate of 19% is further illustrating the acceleration of our business.
Speaker #2: For the full fiscal year, revenues amounted to €16.353 billion, an annual increase of 12%, which at a constant US dollar/euro exchange rate would have been even 15%.
Speaker #2: This growth rate was twice as high as the one we had originally anticipated. Applying our professional cycle management, our teams handled the rapid turn in the cycle very well.
Speaker #2: In lockstep with revenue, our profitability also expanded throughout the 2026 fiscal year, with Q4 clearly being the strongest, with a segment result of €1,119 million.
Speaker #2: This corresponds to a segment result margin of 23.8%, 450 to 470 basis points, up from the quarter before and slightly better than anticipated, mainly driven by positive volume and mix effects.
Speaker #2: For the full 2026 fiscal year, the segment result margin was 19.7%, up 220 basis points year over year. Regarding our order backlog, we have decided to provide qualitative color going forward and cease to disclose specific numbers in line with the majority of peers.
Speaker #2: That being said, we did see a further increase in incoming orders, continuing over the course of the September quarter. Relating to widening supply constraints, while distribution and customer inventories are at or below target levels, this supports visibility into the new fiscal year.
Speaker #2: Now to our divisional review, which we are going to do one last time along our former four-divisional setup, commencing as usual with Automotive. In the final quarter of our 2026 fiscal year, revenues of ATV increased by 8% quarter-over-quarter to €2.089 billion.
Speaker #2: Growth was driven mainly by microcontrollers, smart components, power components, and MOSFETs. The segment result of ATV increased to €468 million, corresponding to a segment result margin of 22.4%, compared to 18.4% in the previous quarter.
Speaker #2: The improvement was driven mainly by higher volumes, supported by some positive mix and pricing effects. Looking at the last fiscal year, our China mainland China auto business grew twice as fast as our global ATV revenue.
Speaker #2: As we could fortify our quality lead in an otherwise supply-constrained local automotive grade semiconductor market. Currently, we see a rising order intake from automotive customers, as unchanged long-term trends driven driving content growth are complemented by some healthy restocking.
Speaker #2: In an overall muted car market, fuel cost increases and the introduction of more affordable models are supporting rising ECV adoption in Europe, India, and Southeast Asia.
Speaker #2: At the same time, OEMs are starting to roll out more advanced software-defined vehicles, architectures across all major regions. The ATV segment is the prime example of our stringent portfolio management.
Speaker #2: We strengthen our strengths, as in the case of Ethernet Solutions, which plays out very successfully in combination with our microcontroller position. We are fixing core areas in need of repair, as the refocusing of our high-voltage drivetrain business is showing, and we exit when non-core areas have a better owner.
Speaker #2: Therefore, we announced in September an agreement to sell our NorFlash and FRAM business to Winbond in an all-cash transaction valued at $1.12 billion, subject to required approvals.
Speaker #2: We are targeting closure in the second half of the calendar year 2027. Our constantly evolving portfolio is rewarded in the marketplace. We have recently secured a major design win for a dynamic domain control system at a leading Japanese car manufacturer.
Speaker #2: The solution is based on our latest-generation RX-TC4 microcontrollers and underlines our pole position in software-defined vehicle architectures, also in Japan. Another example is a design win with a North American electric vehicle manufacturer.
Speaker #2: Our hybrid-packed drive silicon carbide modules will be used in the traction inverter alongside RX microcontrollers, power management ICs, transceivers, and gate drivers, demonstrating once more the breadth of our profitable system offering.
Speaker #2: Let's now look at green industrial power. GIP's revenue increased by 13% quarter over quarter to 503 million euros, marking the September quarter the third consecutive one of double-digit growth.
Speaker #2: All application areas contributed to the sequential increase. The segment result improved to 69 million euros, corresponding to a segment result margin of 13.7%. The improvement was driven by higher volumes and a favorable product mix.
Speaker #2: The recovery in industrial markets continues to broaden, while power infrastructure remains the strongest structural growth engine. Customer orders continued their upward trajectory, accompanied by emerging supply tightness in high-performance silicon carbide products and high-power modules.
Speaker #2: Investments in grid modernization, renewable energy integration, and AI-related power infrastructure are supporting demand for energy storage systems, solid-state transformers, and solid-state circuit breakers. We note a strongly growing design win pipeline in these applications.
Speaker #2: Our technological and reliability differentiation, along with our system understanding, positions us well to benefit from continued growth in power infrastructure, with additional opportunities emerging from factory automation and broader industrial markets.
Speaker #2: A word on silicon carbide, which in Infineon's case is driven jointly by industrial data center and automotive applications. In our 2026 fiscal year, we achieved revenues of 700 million euros and annual growth of 10%.
Speaker #2: For the coming year, growth is expected to significantly accelerate, and we project silicon carbide revenues of well above 1 billion euros, driven by our broad portfolio targeting a multitude of applications.
Speaker #2: We are determined to keep leading in innovative wide-band gap semiconductor technologies, as demonstrated also by our first processing of functional silicon carbide power devices on 300 mm wafers, announced yesterday.
Speaker #2: Now to Power and Sensor Systems, which had a stellar quarter and accelerated further on its profitable growth trajectory. PSS achieved revenues of €1.796 billion in the September quarter, a full 25% up sequentially.
Speaker #2: Compared to the same quarter one year ago, the growth rate was a staggering 48%. Similarly, the margin of PSS expanded significantly. The segment result increased to 554 million euros, leading to a segment result margin of 30.8%, approximately 6 percentage points more than in the previous quarter.
Speaker #2: Besides the significant volume increase, mix and pricing also had a positive impact. The very positive growth and profitability developments relate first and foremost to our leadership position in AI power solutions.
Speaker #2: We achieved €1.7 billion of dedicated AI power revenues in the concluded fiscal year 2026, equivalent to a bit above 10% of group revenue.
Speaker #2: Together with power solutions for non-AI racks and servers, our overall data center business amounted to around €2.2 billion in the last fiscal year, of which around €800 million pertained to the September quarter.
Speaker #2: Going forward, we will report and forecast one unified number for the overall data center business. New AI processor generations and higher compute density go hand in hand with higher power density and novel architectures for central data centers.
Speaker #2: At the same time, evolving AI workloads like inference and task coordination translate into significantly rising CPU growth rates. Our key focus is to increase our dollar-per-kilowatt content by addressing the needs of our customer for even more sophisticated vertical power delivery.
Speaker #2: And other modules. The transition to 800-volt architectures, as well as high-power parts reaching into the grid, like solid-state transformers. Said differently, AI is broadening and continues to be a substantial tailwind for us in terms of growth and profitability.
Speaker #2: In our just-started 2027 fiscal year, revenue growth will again be supply-limited. In other words, it will be a function of successfully executing manufacturing capacity expansions.
Speaker #2: We strongly benefit from the fact that we will be ramping our new smart power fab in Dresden, as well as scaling up manufacturing partners to serve unabated customer demand.
Speaker #2: In our last earnings call, we already flagged that leading customers across the data center ecosystem are engaging with us through multi-year delivery and capacity reservation agreements.
Speaker #2: The total cumulative sales volume of these agreements, both signed and in negotiation, has surpassed the €10 billion mark. Through volume commitments and prepayments, investments and risk are being shared.
Speaker #2: For our 2027 fiscal year, we project data center revenues of close to 4 billion euros, adding another year of tremendous growth. A key ingredient to our unrivaled leadership, besides a highly differentiated portfolio system-level expertise and in-house manufacturing capacity, is innovation.
Speaker #2: This helps us to drive our average dollar content per kilowatt. As a prime example, we are advancing our collaboration with NVIDIA to include gallium nitride-based intermediate bus converters.
Speaker #2: Our GaN offering supports the full range of conversion ratios, from 800 volts to 50, 12, and 6 volts, giving data center operators the flexibility to optimize future rack architectures without compromising power density or efficiency.
Speaker #2: Accelerating innovation to customer value in an AI was also the motive behind our acquisition of C2i semiconductors, a Bangalore-based technology company specializing in software-defined multi-phase controllers and smart power stagers for vertical power delivery, including substrate-integrated voltage regulators.
Speaker #2: All in all, Infineon remains the preeminent provider of solutions across the full power delivery chain from grid to core. Let's complete the divisional review with connected secure systems.
Speaker #2: CSS recorded revenues of €318 million in the September quarter. The sequential decline of 9% related to temporary, fluctuating project business and supply constraints affecting embedded security and identification solutions, which more than offset positive momentum from the ramp of consumer eSIM and improving microcontroller and connectivity demand.
Speaker #2: The segment result of CSS amounted to 25 million euros, corresponding to a segment result margin of 7.9%, reflecting the decline in revenue. Looking ahead, recovery signals are broadening across industrial smart home and medical applications.
Speaker #2: Edge AI is increasing the need for secure and energy-efficient processing, sensing, and connectivity. With the expansion of our PISO control portfolio targeting motor control and power conversion, we are strengthening our ability to bring differentiated system solutions to industrial, including infrastructure AI and consumer applications.
Speaker #2: Physical AI is developing into a major new growth driver for Infineon—not in a distant future, but beginning here and now, as our collaboration with NVIDIA is demonstrating.
Speaker #2: Our integrated motor control solution, combining Ethernet connectivity, microcontrollers, power, and sensing, is available on NVIDIA's robotics robotics developer platform. Digital twins of our reference designs let developers perform tests in NVIDIA's simulation environment before hardware is built.
Speaker #2: Our certified, trusted platform modules, integrated into NVIDIA's robotics computing platform, provide security across the product lifecycle. Robot developers can thus move robots into deployment quickly and securely.
Speaker #2: Here at Electronica, we show use cases in semiconductor manufacturing with a partner. This concludes our divisional review for today. Before handing over to Sven for the financials, let me briefly comment on our changed organizational setup and its link to Infineon's target operating model.
Speaker #2: As you know, we have been operating for a bit over four months now in these three divisions: Automotive, Edge Systems, and Power Systems. The key guiding principle for this streamlined setup is clear application ownership, including but not limited to our main secular growth drivers.
Speaker #2: ATV remains responsible for the structural automotive trends of software-defined vehicles and e-mobility. The focus of ES is on applications at the edge between the physical and digital world, in particular edge AI and robotics, the later being jointly supported by all divisions.
Speaker #2: PS is in charge of powering data centers from grid to core, as well as power infrastructure. The transition into the new structure has worked really well.
Speaker #2: Early customer and employee feedback is very supportive. To further explain the individual value proposition, and how each division drives profitable growth and contributes to Infineon's overall target operating model, the three division heads will each provide a capital markets update throughout the course of our 2027 fiscal year.
Speaker #2: ATV will start on December 7th. Our targets for Infineon remain unchanged, including growing the company by more than 10% through the cycle, and we are fully confident in our ability to capture structural opportunities.
Speaker #2: For the foreseeable future, we expect the PS division to grow significantly faster than 10%. Whereas for Automotive and ES, we anticipate growth of around 10%.
Speaker #2: And now, over to Sven for the key financial figures.
Speaker #1: Thank you, Jochen, and good morning, everyone. In my part, I will focus on the September quarter, occasionally adding comments about full-year numbers. The fourth and final quarter of our fiscal year 2026 saw continued favorable gross margin development.
Speaker #1: The reported gross margin increased to 41.8%, up from 40.8% in the prior quarter. The adjusted gross margin reached 45.1%, a rise of 230 basis points from the previous quarter’s 42.8%.
Speaker #1: Higher volumes, in conjunction with positive mix and pricing effects, drove this margin expansion, more than compensating for rising input costs for items like precious metals and freight.
Speaker #1: As communicated, idle costs stayed on the same level as one quarter before, given our continued focus on bringing down inventory reach. For the full 2026 fiscal year, the adjusted gross margin increased to 43.1% from 41.4% in the year before.
Speaker #1: The main factors at play on the positive side were top-line expansion, lower idle costs, the declined as predicted from close to 1 billion euros to just under 650 million euros, and further additional benefits from our structural step-up program.
Speaker #1: Main margin burdens were annual price downs of a low single-digit percentage on group level and a significantly negative currency impact. Additionally, the high voltage drivetrain business within automotive constituted a margin drag of about 1 percentage point on group level.
Speaker #1: Now to our operating expenses. Research and development expenses amounted to €671 million in the September quarter, sequentially constant. Selling, general, and administrative expenses went from €433 million to €470 million.
Speaker #1: On an annual basis and net of non-segment result charges, R&D is a percentage of revenues was just under 15%, SG&A close to 9%. Further positive contributions from the step-up program on our OPEX were partly offset by higher incentives linked to business performance.
Speaker #1: Non-segment result charges for the fourth quarter went up to 344 million euros, bringing the total for the 2026 fiscal year to 1 billion 8 million euros, practically the same level as one year earlier.
Speaker #1: The biggest components of the non-segment result are acquisition-related amortization and stock-based compensation. The financial result amounted to minus €88 million after minus €63 million in the prior quarter, and contained adjustments to the carrying value of participations held at equity.
Speaker #1: Income tax expense for the September quarter was 163 million euros, equivalent to an effective tax rate of 23%. Cash taxes amounted to 93 million euros, the quarterly cash tax rate stood at 13% only, unusually low due to tax refunds related to prior years.
Speaker #1: For the full 2026 fiscal year, the effective tax rate was 23%, and the cash tax rate was 20%. Going forward, for modeling purposes, a tax rate between 20% and 25% remains a reasonable assumption.
Speaker #1: Our investments in property, plant, and equipment, other intangible assets, and capitalized development costs increased to €931 million in the final quarter of the 2026 fiscal year, bringing the annual total to €2.6 billion, a good €100 million below our projection.
Speaker #1: Depreciation and amortization expenses, including acquisition-related non-segment result effects, amounted to 499 million euros. The annual total for D&A came in at 1.9 billion euros.
Speaker #1: Now to our free cash flow from continuing operations. In the September quarter, free cash flow increased to €657 million after €599 million in the quarter before.
Speaker #1: The closing of the acquisition of the Sensor portfolio from AMS Osram at the beginning of the quarter was overcompensated by a higher operating result and positive trade working capital effects.
Speaker #1: The reach of our on-books inventory went down quarter over quarter from 165 to 136 days. This number is influenced by reclassifying inventories belonging to the memory business to be sold to WinBond as assets held for sale.
Speaker #1: Adjusting for this effect, the DIO at the end of September would have been 144 days, slightly better than this year's target. On a full-year basis, our reported free cash flow amounted to €993 million.
Speaker #1: The adjusted free cash flow, considering acquisitions and expenditures for large front-end buildings—in particular, the mentioned AMS Osram transaction and expenditures for our Smart Power Fab in Dresden—came in at €1.9 billion, equivalent to 11.8% of sales, in line with our target operating model.
Speaker #1: Our gross cash position stood at around 2.1 billion euros at the end of September, benefiting from the positive free cash flow in Q4, less payments made for share buybacks in connection with our equity-based compensation plans.
Speaker #1: Gross debt amounted to around 6.8 billion euros as per the end of our 2026 fiscal year, net debt to around 4.7 billion euros, gross leverage of 1.7 times is below our maximum target level of 2 times.
Speaker #1: Net leverage sits at 1.1 times. Our after-tax reported return on capital employed continued to develop positively in the final quarter of our 2026 fiscal year and came in at 9.6%.
Speaker #1: That being said, and despite the positive trend, the value of 7.2% for the full fiscal year is falling short of our aspirations, underscoring the imperative to pursue further profitable growth.
Speaker #1: Jochen will comment on the positive further rosy trend in our current fiscal year later in the outlook. As the 2026 fiscal year lies behind us, I would like to briefly comment on our dividend proposal.
Speaker #1: At our annual shareholders meeting in February, we will propose a dividend of 38 cents per share, 3 cents up from the prior year. This would result in a payout of about 500 million euros.
Speaker #1: Following 2 downturn years in which we kept the dividend constant, a prudent raise strikes a fair balance between shareholder remuneration and sufficient financial flexibility for the profitable growth of the company in the coming years.
Speaker #1: Now back to Jochen, who will present and explain our outlook for Q1 and the entire 2027 fiscal year. He will use our new setup for divisional comments to enable comparisons for you.
Speaker #1: Please see our quarterly press release or the analyst presentation for adjusted historical data for automotive, ES, and PS, and electronic version is available on our IR website.
Speaker #2: Thank you, Sven. The market environment for our outlook is clearly favorable, as structural tailwinds are supported by ongoing cyclical recovery. Broadly speaking, demand is developing very well, and supply conditions are tightening.
Speaker #2: In particular, secular opportunities such as AI, power infrastructure, and software-defined vehicles offer additional growth potential. Lead times continue to stretch further. Customer internal inventories are at or slightly below target levels.
Speaker #2: Customers are increasingly focused on securing supply further out. Rising backlog levels are improving visibility and lead us to expect very positive business performance into and throughout our fiscal year 2027.
Speaker #2: For our outlook for the first quarter as well as the full fiscal year, we are assuming a U.S. dollar exchange rate of 1.15. Our rule of thumb for currency sensitivity going forward is being adjusted in line with our increasing business volume and higher relative U.S. dollar share.
Speaker #2: For every 1 cent change in the exchange rate, quarterly revenue moves by around 30 million euros, and quarterly segment result by around 15 million euros.
Speaker #2: For the December quarter, we expect revenues of around 4.6 billion euros. The very slightly sequential decline corresponds to a much better-than-usual seasonality, which is also apparent in a projected year-over-year growth rate of 27% for our fiscal first fiscal quarter.
Speaker #2: By segment, for ATV and PS, we expect revenues to hold up quarter over quarter, whereas for ES, we predict revenues decline moderately. We expect the first fiscal quarter segment result margin to come in at around 23%, reflecting the slight volume decline.
Speaker #2: For the full 2027 fiscal year, we expect revenues to come in at around 20 billion euros, equivalent to very high annual growth of more than 20%.
Speaker #2: From a segment perspective, PS is poised to grow materially faster than the group average, driven by highly dynamic demand for AI-powered solutions, as already indicated, and increasing momentum in power infrastructure and other industrial markets.
Speaker #2: For ATV, we are expecting mid-teens growth, driven by strong content growth from the broader adoption of software-defined vehicles and rising ECV penetration in some car markets.
Speaker #2: Specifically, on the high-voltage drivetrain business, which we are refocusing, I can report that we are seeing first signs that our efforts are bearing fruit.
Speaker #2: The revenue run rate has inflected, and profitable design wind activity for future years is picking up again. For the 2027 fiscal year, however, it will still slightly dilute growth and margin for ATV.
Speaker #2: Lastly, for ES, we expect revenue to grow at a low-teens percentage, and a gradual recovery in most of the segments and markets is complemented by structural growth in applications like robotics, smart home, and medical devices.
Speaker #2: Strong top-line growth on company level will go also hand in hand with noticeable market margin expansion. We expect the full year adjusted gross margin to go up to a mid to high 40s level, and the segment result margin to increase to a mid-20s level.
Speaker #2: Apart from the positive fall-through from significantly higher volumes, we project idle cost to go down to an annual level of around €350 million, the decrease being equal to around 1.5 percentage points of margin.
Speaker #2: Furthermore, we expect pricing to have a slightly positive impact over the year on group level, as well as the full run rate of contributions from our step-up program, as commented by Sven.
Speaker #2: To some extent, offsetting these factors will be rising input costs for various materials and energy, higher depreciation and amortization for manufacturing ramps, as well as rising absolute operational expenses—primarily on the R&D side—to protect and deepen our competitive moat through innovation.
Speaker #2: In order to support our profitable growth, we expect to spend between 3 and 3 and a half billion euros on investments in the 2027 fiscal year.
Speaker #2: Key projects in their current and coming years will be the ramp of Drayton 4 for power and analog mixed signal technologies, expanding Cooling 3 for silicon carbide, and starting to build the world's first gallium nitride production on 300 wafers in Villach, as commented 2 weeks ago.
Speaker #2: On the back-end side, we will focus on building out our high-volume sites in Malacca and, in the future, Bangkok. The exact magnitude of overall investments within the projected corridor will be a function of tangible customer demand.
Speaker #2: For 2027 and beyond. By doing so, we drive our large-scale manufacturing sites into further improving economies of scale, supporting our competitive differentiation. For depreciation and amortization, we anticipate a level of 2.2 billion euros, including amortization of around 300 million euros resulting from purchase price allocations, which will be recognized in our non-segment result.
Speaker #2: Based on our favorable business outlook, we are expanding. We are expecting the reported free cash flow to increase to around €1.8 billion for the adjusted free cash flow, which is net of investments into major front-end buildings and M&A transactions.
Speaker #2: We expect a level of around €2.2 billion, which would correspond to approximately 11% of group revenues. For our return on capital employed, we project an increase to a low teens level.
Speaker #2: To housekeeping remarks on our outlook figures. First, we have not baked in the planned divestiture of our NOR Flash and Ephraim Memory business. Assuming a closing of the transaction within our 2027 fiscal year, our free cash flow would rise by close to €1 billion pre-tax.
Speaker #2: The impact of the sale on group revenue, segment result, adjusted free cash flow, and ROSI would be immaterial due to the closing assumed to occur in the second half of calendar 2027.
Speaker #2: Second, our forecast implicitly assumes that geopolitical conflicts or trade tensions do not significantly escalate further. Complementing the business and financial aspects, I would like to briefly touch on our sustainability metrics.
Speaker #2: We are very well on track to reduce our CO2 emissions related to scope 1 and 2, notwithstanding significantly rising production volumes. We have reduced such emissions by 81% by end of September, compared to the base year 2019.
Speaker #2: Also, for our scope 3 target, which we have set last year, we are very well on track. By 2029, 72.5% of our suppliers should have a science-based target.
Speaker #2: Currently, we are already close to 65%. In addition, we have set ourselves a water recycling target this year. By 2030, we want to recycle 50% of our processed water.
Speaker #2: Currently, we are at 28%. Ladies and gentlemen, let me summarize. The September quarter was a strong finish to our fiscal year '26, with a record $4.7 billion of revenue and a 45% gross margin and 23.8% segment result margin.
Speaker #2: Secular growth drivers are proving to be very strong. At the same time, the upcycle is fully on track, market strength is broadening, and supply continues to tighten.
Speaker #2: AI is highly dynamic, and Infineon remains at the forefront of powering data centers from grid to core. Our unrivaled portfolio, coupled with a significant additional clean room space, will propel growth.
Speaker #2: We expect revenue in this area to significantly increase to close to €4 billion in our fiscal year 2027. We are growing strongly, also beyond AI.
Speaker #2: Our great business diversification is letting us benefit from further key growth drivers, such as power infrastructure and software-defined vehicles. Based on our bright business outlook, we expect significant profitable growth in fiscal 2027: around €20 billion of revenue, mid to high 40s gross margin, mid-20s segment result margin, and around €2.2 billion of adjusted free cash flow.
Speaker #2: Innovation speed, operational excellence, and active portfolio management are the basis for our continued value creation.
Speaker #1: Thank you very much. Ladies and gentlemen, this concludes our introductory remarks. And we are now opening the call for your questions. as a reminder, this call is being broadcast live from Elektronika, and as we would like our board members to go out and continue doing business with customers soon, we kindly ask you to limit yourself really to 1 question and 1 follow-up today.
Speaker #1: Is sorry, we seem to have some technical issues. Seems to be a feedback. On which position?
Speaker #2: Sorry, we have an echo here in the line.
