HELLA GmbH & Co. KGaA

Good morning, ladies and gentlemen, and welcome to the Heller Investor Call on the results for the first quarter of fiscal year 2026. This call will be hosted by Professor Peter Leier, the CEO, and Sila Vini, the CFO of Heller. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation by the telephone. Turn the floor over to your host, Peter Leier.

Thank you very much, and Good morning to everybody and a warm welcome to our Q1 investor call. We have prepared as usual a short agenda for today's call. We would like to talk at first about our achievements in Q1, followed by the financial results. Then we will talk about the financial outlook of 2026 again. and at the end we will summarize with key takeaways and after that we are for sure open and happy to take your questions. Next slide. Let me talk about achievements at first. You see here sales in first quarter is somehow flat. We have an increase of cost measures to safeguard our profitability. If you look a little bit to the The sales at first more in detail, as I mentioned, at constant at X sales is year over year nearly flat with a slight increase by 0.2%. We achieved an absolute figure of 2.001 million Euro sales. If you look a little bit more to the details of sales, you see that electronics sales year over year increased by 6.8 percent to 832 million, mainly driven by radar and energy management business. In the lighting business group, we have opposite development year over year. We have a decrease of sales of 7.7 percent, and we achieved there 834 million. mainly affected by phase-out of programs and as well lower calls. In our third business group, the Lifecycle Solutions, sales was up by 5.6% in first quarter. We achieved 260 million sales driven by strong special OE business, specifically where the market is continuing to recover. Overall, if we look to reported sales, we are year over year down by 2.9% and achieved here an absolute figure of 1.939 million euro. If you look then to OI margin, we closed the first quarter on a level of 5%, mainly due to negative influences of lighting. We will talk about that in a second more in detail in Phillip's presentation. We continue with persistent savings in R&D expenses and that had then the result that the ratio is down by around 130 to 9.2%. And we see positive effects of cost reduction measures further And those are offsetting the negative volume and mixed effects. If you look to net cash flow, net cash flow is better than the comparable Q1 in financial year 2025. We achieved net cash flow of minus 49 million euro in Q1 2016. versus minus 61 million in Q125. Net cash flow sales ratio is at minus 2.5%, as well better than prior year where we were at minus 3%. And for sure we have to consider here the usual seasonality. Net cash flow is continuously impacted by refactoring cash out. And we have strong governance for CapEx implemented, which we have as well continued in Q1 and which we will continue. If you look a little bit more to the business details, you see here that the order intake in Q1 is well on track. We work on our several times mentioned further diversification of our business, with respect to regions and segments. If you look a little bit to our business groups, you see in electronics that we had in Q1 a strong order intake in our core growth products. You see here three examples, battery management system and car access order from a European OEM for the Chinese and European market with start of production in 27. You see here DC-DC converter rollout business for premium OEM for the Chinese market with a SOP already in 26. And you see here a large-scale high-voltage battery management system order from a US OEM for an SOP in 2028. If you look to Lighting Business Group, we have here a focus on international order intake with premium OEMs as well as volume models, so as well following our strategy. Well, here are three examples. Headlamp package for midsize and premium models for US OEM with SOP in 28 and 29. We have a headlamp package for European OEM for the US market with SOP in 28. And we have a headlamp and carbonylite order for European customer for the Asian market with an SOP in 2026. Last one of these to talk about lifecycle solutions. As we hear the customer and regional diversification continues, which is I think as well an execution of our announced strategy. So here two examples to be talked about. First, the customized LED lamps and intelligent battery sensors for an international manufacturer of agriculture machinery for the India market, SOP 2027, or Significant step for us, accelerator pedal sensor for an international truck, joint venture for the Asian market with the SOP in 2029. Yeah, with this overview of the order intake, I will hand over to Philippe Vignier to talk about financial results. Please, Philippe.

Thank you, Peter. So, good morning. So, in terms of sales, yes, the reported sales were at $1. So it's a decrease of 2.9% on reported sales. But the sales are impacted by ethics, by 62 million negative impacts. And then the growth is organic growth is at plus 4 million. So it's plus 0.2% versus the market, which is down by 3.4. So we are overperforming the market in terms of sales, basically due to the good momentum on electronic, as it was said. live solution business as well, while 19 is showing some decreased sales with a failed out program which is impacting Europe mainly and North America. Now looking at the performance at constant rate versus the market. So Europe is above plus 0.9%. Here we have some successful of radar and as well the effect of special operations in Europe. North America is down by 1.3% here, so we have the lighting business which is impacted by the program going down but not fully offset by new ramp-ups. And we have Asia Pacific where we are at plus 8.4 versus markets at minus 4.9. or 3.5, sorry, versus a market of 4.9, so I perform the market of 8.4, and yet many coming from electronic as well, but mostly lighting where we have the full effect of the new program and the ramp-up versus light year Q1. Now looking at the segments, so if we start with electronics, so here we continue, as we said, with a sales momentum which is pretty good and gross, So year-on-year sales at 6.8% increase at constant exchange rates, so at 832 million. Operating margin at 59 million, so it's 6.6% versus 6% last year. So operating margin is basically driven by a bit of volume, but also much lower R&D expenses, which is positive for the operating income, and saving as well on the administration and distribution expenses. which is leading to this improvement in operating margin. Lighting, so in terms of sales, is down, minus 7.7% again at constant exchange rate, which is mainly, as I said, due to North America, which is down and also impacted by a fixed impact, whereas in Asia and China, we are performing relatively well in terms of sales versus the market. But all you know, it's a decrease. So it's close to 100 million of sales decrease, which has obviously a drastic volume impact on the bottom line. So we are having an operating margin of 1 million for lighting versus 31 million last year. So mostly impacted, again, by the volume. And despite reduction in R&D and SG&A, that was obviously directly impacted by volume, so not enough to be at the level of last year. Going to lifecycle, lifecycle is also showing a growth in terms of sales, 5.6%. at $260 million, with an operating margin at $35 million, 13.4% versus 10.8% last year. So here we continue to benefit in terms of volume of the rebound on the agriculture segment and construction machinery, which was forced in the end of last year. The momentum is continuing. That's pretty good for the volume and the profit margin, operating margin. So at 13.4, basically benefiting from this volume impact and also saving on SG&A with the cost measure, which has been implemented already last year. Looking at the full P&L and the net results. So here we have an increase of the earning before tax and interest, and we have an increase of the net income. So here we are reaching 32 million of net income versus 24 more at last year, so 1.7%. So here we have the benefit of having less or lower prospectoring costs than last year due to seasonality and program announcement according to the booking rules. So this is favorable for Q1-26. Leading to this plus... The savings we are generating on the R&D going from 10.4% to 9.2% and also saving on SG&A going from 7.4% to 7.2%. So all this is contributing to this positive EBIT versus last year. In terms of cash flow, so we are at minus 49 million of net cash flow versus minus 61 last year. So slightly better than last year. And this is also basically achieved thanks to this strong governance we have on the capex. You can see on the right where we have spent 82 million of capex versus 135 last year. On the other side, we have more structuring costs in our cash in Q1 by more or less 30 million versus what we had in our Q1 25 as a cash out. So this is in a nutshell the final tools. So now we can look at what is coming in front of us and Outlook for 26 with Peter.