Vantiva S.A.

Okay, sorry for the delay. Good evening, ladies and gentlemen. Welcome to Vantiva H1 2023 Results Conference Call, chaired by Luis Martinez-Amago, CEO, and Lars Ehlen, CFO. At this time, all participants are in listening mode only. Later, we will conduct a question and answer session. If you'd like to register a question, please press star 11 on your telephone keypad. Just to remind you all, this conference is being recorded. We would like to inform you that this event is also available live on Ventiva's website with synchronized slideshow. During this conference call, statements could be made that constitute forward-looking statements based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecasted, or implied by such forward-looking statements. For a more complete list and description of such risks and uncertainties, refer to Vontivaz's filing with the French authorities of financial markets. I would now like to hand over the call to Luis. Please, go ahead.

Thanks, Thierry. Good afternoon, good evening to everyone, and welcome to the first half results of 2023. Let me start by the slide number three, four, sorry. Let me start by saying that the results that we are going to present are in line with our plans, the plans that we prepare. And as I shared with you in previous occasions, we are in a year in which the demand is proving weaker than in previous years. It is not a surprise. I think we've been commenting that the global electronic industry And the consumer is having a slowdown compared to previous year. And this is reflected in our results, as you will see in a minute. But that was part of our plan. In the connected home area, in addition to this slow demand or a bit lower demand, we have the effect of some of our customers, they have more inventory than normal. with the results of the exit of the previous year crisis with chips, in which all of us and our customers were trying to get as much equipment as possible. And now with this a bit lower demand, they are trying to deplete, and they are delaying a little bit the demand to us. But as you will see, we are managing as planned. In the DVD business, in addition to the natural decline of the business that is part of our plan, The same happened where customers, they were having additional inventory to serve the demand of the previous year, and we are hit by this depletion of the inventory. And as you will see, there is a certain lower result than the last year, and the situation is a bit weaker than what we were expecting. This situation, and we have analyzed the business moving forward, has triggered a review on the long-term business plan for this division. As I said, all this was taken into account, and we already launched a number of strict cost controls and operational efficiencies in both divisions, and this is helping us