Safran Sa Ord

Welcome to the Saffron Third Quarter 2025 Revenue. At this time, I would like to turn the conference over to your hosts, Olivier Andries, Saffron's CEO, and Pascal Bontenay, Group CFO. Mr. Andries, please go ahead.

Good morning, everyone. Thank you for joining us for Saffron's Third Quarter 2025 call. I'm here with Pascal. Let us start with the key highlights. On the quarter, Safran delivered another strong performance in Q3, with IT growth driven by increased volume and services. Adjusted sales reached 7.9 billion euros. Civil aftermarket remained robust, reflecting continued demand from airlines. Spare parts for civil engines were up 16%, largely thanks to CFM56, while services grew by 24%, supported by LEAP contract. Regarding LEAP engine deliveries, output has improved quarter after quarter this year. After a slow start, we have been able to catch up on delays, and in Q3, We reached a new record with over 500 LEAP engines delivered, up 40% year-on-year and 25% from the previous quarter. Over the first nine months of the year, we have delivered a total of 1,240 LEAP engines, a 21% increase compared to last year. These strong results also reflect continued improvements across our supply chain. In addition to these strong operational results, we are excited about our recent acquisition of the actuation of flight control activities from Collins, finalized at the end of July. The strategic move has already contributed to our Q3 performance. Integration is off to a great start. Our teams are fully engaged and focused on unlocking cost synergies and new commercial opportunities. We are confident that this acquisition will be a strong driver for Safran's future performance. Looking at the year-to-date picture, adjusted revenue for the first nine months amounted to €22.6 billion, up 15% organically, confirming a strong growth trajectory across all divisions. Based on this performance, we are upgrading our full-year 2025 outlook on all metrics. Turning to slide 4, let me highlight some of our key business achievements this quarter. Last week in Morocco, we brought ground on a new LIP MRO facility and announced the launch of a new LIP 1D assembly line in Casablanca. This expansion strengthens our global industrial footprint and will support the sustained ramp-up of the LIP engine deliveries in the years ahead. with a capacity to assemble up to 350 engines per year. In defense, Safra and RideMetal signed a framework agreement to jointly develop advanced defense solutions, combining our expertise in electronics, navigation system environments, and atomic clocks, time servers, with RideMetal's land defense capabilities. At the 2025 Defense and Security Equipment International Show in London, SAFRAN unveiled its next-generation Diffra-Ren binoculars, setting new standards for tactical observation, situation awareness. Lastly, in Poland, SAFRAN and PGZ entered in a strategic defense partnership to foster local industrial cooperation and innovation. The agreement covers industrial cooperation of the Faber Precision Munition, and the local production of geodicts navigation system with PGZ. Let me now hand over to Pascal for more details on Q3 sales.

Thank you, Olivier. Good morning all. A few words to start with on the FX as usual. After a sharp rise in the first part of the year, the Eurodollar stabilized around 1.15 to 1.17 since early July. Our hedging portfolio has remained fully protected so far. with no deactivations to date. The team is continuing to edge our 2029 exposure at very good rates. Our 2025 edge rate is confirmed at $1.12 per euro, and the edge book now totals $54 billion as of end September, unchanged from the end of June. Overall, our approach to FX risk has kept us well protected, ensuring attractive edge rates and supporting South France competitiveness in a challenging market environment. Turning to slide 7, Q3 revenue reached €7.9 billion, up 18% year-over-year. The currency impact was a negative €300 million, mainly reflecting the euro appreciation against the US dollar, with an average spot rate of 1.17 in Q3 compared to 1.10 last year. The COPES largely offset the negative currency impact, contributing €300 million. primarily driven by two-month consolidation of the actuation and flight control activities acquired from Collins. In total, the group generated over €1.2 billion in additional organic revenue versus last year, fueled by growth in every division, with propulsion leading the way. And on slide 8, let me now provide a few details for activity. Propulsion revenue reached €4 billion, up 26%, Civil OE grew strongly. Q3 was a record quarter with 511 LEAP engines delivered, up 40% year-over-year and up 25% sequentially. Civil aftermarket remained very dynamic, with spare parts up 16%, mainly driven by CFM56 and IceRust engines, both of them benefiting from sustained volumes and higher work scope. CFM56 gross prices were up mid to high single digits in August. LEAP also contributed positively over the period. In the first nine months, spare parts sales were up 19.5% at the top end of our guidance. Services were up 24%, mainly driven by LEAP RPSH contracts, but also high-thrust engine service contracts. Over nine months, services increased by 22.2%, beyond our guidance, but as you know, it has no additional impact, even our profit recognition methodology. Military engine revenue declined year over year, notably due to a softer level of aftermarket activity and slightly fewer MATA deliveries to end customers. Equipment and defense revenue increased by 12% to 3 billion euros, with both OE and aftermarket growing at a similar pace. Higher OE sales were fueled by aircraft ramp-up, driving increased demand for landing gear, electrical and power systems, nacelles, and adionics. Defense also continued to benefit from strong momentum, especially in the guided-bomb hammer, missile seekers, navigation, and timing systems. Services continued to perform well, supported by strong air traffic levels, which resulted in two ongoing demand, in particular for landing system, electrical system, and nacelles. Aircraft interiors posted revenue of 800 million euros, up 10%. OE sales increased by 12%, supported by steady growth in the cabin business, benefiting from aircraft ramp-up. Business class seat deliveries, however, face headwinds from certification, which remains a key challenge in the sector. Services were up 7%, driven by cabin activities, with very good momentum in Middle East and Asia. A few additional points on slide 9. First, on the share buyback program. As of October 17, we hold approximately 5.1 million treasury shares, designated for cancellation, and we are currently finalizing the ongoing 500 million euro tranche, which will be completed by December 5th. All these shares, representing a total of 1.4 billion euros, will be canceled by the end of 2025. Some update on the tariff environment. Now that bilateral agreements have been negotiated, we are better positioned to assess and manage the risk associated with tariffs. The agreement between the U.S. and the EU, as well as the eligibility of our products under the USMCA regime, have significantly reduced the amounts at stake. In this fluid environment, Safran remains agile and actively continues to implement mitigation measures and commercial actions. Nonetheless, a residual impact remains, primarily related to flows between China and the U.S., what we call Section 232 on aluminum, steel, copper, or products which are not eligible under bilateral agreements. So the net impact on the recurring operating income, which is now included in the full year 2025 outlook, is expected to be a negative 100 to 150 million euros in 2025. Olivier, back to you.

Thank you, Pascal. So based on the strong performance over the first nine months, we are upgrading our full year 2025 outlook on all metrics. Revenue should increase by 11% to 13%. Recurring operating income guidance is improved by €100 million at midpoint and now includes the expected net tariff impact, as Pascal just commented. Free cash flow guidance is improved by €100 million at midpoint, reflecting the improved business performance. Two of our main assumptions are updated. LEAP engine deliveries are now expected to increase by more than 20% versus 2024. And with increased activity in LEAP maintenance services are now expected to grow by low to mid-20s, with no additional debit associated due to our specific profit recognition methodology. In addition to this outlook, The call-in slack control and actuation activity should contribute at around 650 million of revenue, with a mid-single-digit recurring operating margin before separation and integration costs. Overall, Safran remains on track to deliver another year of profitable growth and robust cash generation supported by healthy demand, solid execution, and the resilience of our portfolio. Thank you. We will now answer your question.

Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. And to withdraw your question, please press star 1 and 1 again. Please stand by while we compile the Q&A queue. Thank you. We will now take our first question. This is from Christoph Menard from Deutsche Bank. Please go ahead.

Yes, good morning. Thank you for accepting my question. I had two, actually. The first one is on the guidance upgrade on the EBIT, now that you include the tariffs, it means we have the equivalent of a 200 million incremental improvement. Where is this coming from? Is it essentially... Spares, can you elaborate? The second one is on Morocco. You're talking about an increase in production capacity. Is it enough for you to reach rate 75 in 2027, or do you need further investment?

Thank you. Good morning, Christophe, and I'll take the first one. Indeed, we raised our guidance by 100 million euros, but as it takes now into account, accounts 100 to 150 million euros impact from tariff. The underlying performance is a raise of 200 to 250 million euros. It's coming primarily from the spare sales. You can see that at the end of the first nine months, we are at the high end of our guidance, which is mid to high 20s for spare part sales at 19.5%. To be frank, we could have been more positive at the end of July, but at that time, we didn't have such clarity on tariffs. So now that the dust has settled, it's easier for us to mitigate the impact and quantify the impact. So this is the two reasons why we can raise today the guidance.

Christophe, for your second question relating to Morocco, This investment is allowing us to meet the high rates requested by our customers relating to the assembly of the engines and to the assembly of the engines. So we have to look at it holistically. between the assembly capacity, let's say, from our partner GE and our own assembly capacity. But indeed, this new investment allows us to meet, let's say, the rate increase, the high rate increase for the assembly. But the assembly is just the tip of the iceberg because in order to meet rates, whatever, 75 or so, if we speak about Airbus, you know, but Boeing has also high rates and also COMAC is willing to increase. So we have to look at the global picture, which is encompassing forging, casting, machining, special processes. So once again, the assembly is just the tip of the iceberg.

Thank you very much. Thank you. And I'll take the next question. And this is from Benjamin Helan, Bank of America. Please go ahead.

Good morning, guys. I hope you're well. First question I have is on aftermarket.

Clearly.

Sorry, Olivia, you do sound quite ill. I hope you get better soon.

But the third question is on aftermarket and clearly very strong trends through the year. And your partner, GE, gave some building blocks for 2026. on their call earlier this week. I was just wondering, are there any building blocks that you can provide? But the mix is obviously very similar, but there's also some differences how we can think about aftermarket growth and any building blocks you can provide at this point into next year. My second question is free cash flow. You've obviously had guidance upgrades pretty much all through the year. They have been quite material. And I think when I look at what you've done in 24, I look at what you've done in 25, it's clearly extremely difficult for you to be as low as what you guided at your capital markets day for, you know, your 2024 to 2028 sort of cumulative free cash flow. So, How are you thinking about the medium-term guidance here? You're clearly running well ahead of it, and when can we expect an update there? And then my final question is, obviously, you've owned Collins for a couple of months now. Just any comments in terms of how it's performing, what you see? And now that Collins is done, where's next from an M&A perspective, or are you broadly happy with the portfolio as it is today? Thank you both.

Okay, good morning, Ben. So I guess your first two questions relate to either the 2026 outlook or the 2028 ambition. At this point in time now, our midterm plan is ready. What we need to do is to compile, you know, our midterm plan with the Collins contribution. We acquired, you know, this company late July. August, as you know, is not... busy month, at least here in France. So we need some more time to compile all this data. So we'll come back in Feb, obviously, with the 25 results, with the guidance for 2026, notably on aftermarket. And we'll discuss our first EBIT target for 2028 and our cumulative free cash flow. I would again agree with the comments you made that we are clearly on the upside, notably on aftermarket. And I guess we can now say that we share a similar view with GE on the CFM 56 spare parts momentum that they disclosed in the middle of July. But we need to quantify the impact at Safran level and come back to you next Feb.

Ben, colleagues, I can tell you that the teams are enthusiastic. The ex-Collins teams, now Safran, in the UK, in France, and in Italy, are enthusiastic to join Safran. They are on board our strategy. They are very pleased to see that we have a strategy going forward with respect to flight controls and the preparation for the next single aileron. Our integration team is fully engaged to get, you know, in the timeline that we've committed to, the cost synergies that we can draw from the various activities. And we have engaged in that, you know. Typically, our team from the NASA business have started to – connect with our new flight control and actuation flight control teams, same for our landing system teams, same for our aero system teams. So basically we are fully engaged. What is next? As we have always said, M&A is opportunistic, but To be very clear on the equipment side, I think we have made most of our moves. We have quite an hour-complete spectrum of activities in the safety-critical equipment, so I don't expect that there's going to be a significant further move on the equipment side. As we said, we stay ready for... let's say, some bolt-on acquisition, especially in defence, which is a strong area of growth.

Thank you both. I hope you go well.

Thank you.

Thank you. Next question is from Chloe Lemary from Jefferies. Please go ahead.

Yes, good morning. Thank you for taking my question. I have the first one on the LEAP assembly line in Morocco. I was wondering how quickly it would run because I was under the impression it would start operation in 2028. So wondering how long it would take to reach the 350 engine per year mentioned in the press release. Also, with this announcement, does that mean that you have finalized discussions with Airbus on the ramp-up to rate 75? My second question was actually on seats. We've obviously seen challenges in certification for a while in the industry now, so I was wondering if it affected in any way what you see as the potential margin for the business, and in turn, if it affected your view of how core this business is for Saffron.

On the LEAP assembly line, we said that the first assembly engine would be beginning of 2028, if I remember well. So it's 2028. And we will ramp up, let's say. We are not going to reach 350 in a matter of months, for sure. But I expect that the 350 can be reached by 2030 or so. So this is from Morocco. Typically, here, our assembly line in Villaroche in France will account for about 65% of our, let's say, global assembly capacity in Morocco, plus we have a small We have a tiny, small assembly capacity in Mexico as well to deliver engines to Mobile, Alabama. So Morocco plus Mexico would account for 35, roughly. At 75, we have, let's say, a two-line view. with Airbus on basically 2026 and 2027. We have engaged in discussion for the Red 75, and so the discussions are ongoing at the moment. On 6, this is an area where we had many, many challenges. We have tackled the development challenges. So now the development process is really under control. We have addressed the supply chain issues. Here as well, it has improved significantly. This is an area where we probably were a little bit too shy, if I may say, on extracting the value of our seed business. And so we've significantly improved our price. of the, let's say, most recent wins that we have obtained. This will materialize in the EBIT in two years from now. But the pricing is obviously a key element of the, let's say, financial recovery of the seed business. And we are still facing some certification challenges, which is an industry-wide challenge on certifications.

That's where we are. Good morning, Chloe. Part of your question, is it still a core business? It is. You know, we have not changed our mind compared to the view we shared at the Capital Market Day in 2021. We say that 30% of the former Zodiac activities were non-core. We have already divested some of them. We may divest more in the future, but CIT is not part of our divesting process.

Very clear. Thank you very much and get well soon.

Thank you. Next question is from Ross Law, Morgan Stanley. Please go ahead.

Hi, everyone. Morning. Thanks for taking my question. Just to come back on leap rates, you just mentioned that you're aligned with Airbus for rates for 2026 and 2027. There's still in discussions for rate 75. Does that mean that rate 75 could only be achieved beyond 2027 from a staff front perspective. Second one on leap again, just in terms of the engine catch up, you previously said you aim to fully catch up by the end of October. So a few days time, given this obviously strong delivery numbers in the third quarter, is that still on track? And then last one, if I may, just on tariffs. So you've quantified the number or the impact for 2025 at 100 to 150 million. But this of course only applies to a portion of the year. So should we extrapolate this run rate into 2026 until the trade deal is finalized? Thanks.

Hello, Ross. On your first questions, what can I say? Red 75 is in our discussion, but I'm not To my knowledge, I mean, RMS has not said that RET75 would be fully reached full year in 2027, to be very clear. So there should be no misunderstanding here. So, yes, we have, let's say, a joint vision on the number of engines we need for 2026, 2027, and we are discussing now 2028 and going forward. Are we going to catch up this year? I'm confident we will. We had a very strong Q3. I don't see any reason why Q4 should be different than Q3. This is why we have raised our guidance of deliveries of LEAP for the full year. And so if we continue on this rate of weekly deliveries to Airbus, we will catch up by end of October, beginning of November, as we said. So I am confident in that respect. I will... Good morning, Rolf.

As you said, in 2025, the tariff story was a bit strange because we had no tariffs paid in Q1. Then starting from April, we had different rates between the EU and US, China and US, and Mexico, Canada and US. before we have the bilateral agreements being announced and now signed, we were lacking clarity. So to answer your question, going forward for 26 up to 2030, if I may, I would expect, given what we know today, because this may change, this is still a free environment, the net impact will be no more than 100 million euros per year on EBIT, okay? So I would say, again, 80, 100 million euros could be the right range to think of.

Okay, great. Thank you very much. And I'll get well soon, Olivier. Thank you.

Thank you. Next question is from Ken Herbert from RBCCM. Please go ahead.

Yes, hi, good morning. Yes, I wanted to first ask on the CFM56, can you comment on across the network how much improvements you've seen this year in turnaround times for that engine and specifically on the aftermarket and specifically when you think you might get back to 2018, 2019 pre-pandemic levels in terms of turnaround time? And then my second question is for the spare parts guidance this year, can you just remind us how much of that is price versus volume versus work scope for the guide on the parts? Thank you.

Hello, Ken. Most of the shops today are dealing with the F-156 and LEAP. what is mainly driving the terminal time are the two following elements. One is the overall maintenance capacity. And in fact, on a worldwide basis, especially in the CFM network, we were short of capacity. So this is why we, are on a significant ramp up of our maintenance capacity and the same for our partners. So this is one. And the second key element is basically the availability of parts. So those are the key drivers of the turnaround time. So because the pressure is very high, both on the maintenance capacity and on on parts globally because we have to feed the OE side as well as the aftermarket side. The turnaround time is not the same as the one we enjoyed pre-COVID. So the CFM56, talking about Safran at least, our current turnaround time is around 100 days, which is above, let's say, the typical turnaround time we had before COVID, which was closer to 70 days. So that's where we are today on CFM 56. On leap, the turnaround time is higher, but this is, as always, this is the beginning of the journey on the leap. But you are on a strong trajectory to decrease the turnaround time on leap globally. this year compared to last year and will make more progress even next year. Today, the turnaround time of LEAP is, let's say, our target is 130 days. And basically, we are on trajectory to go down to 100 days in the next one or two years.

Okay, and your second question on the spare path momentum. You know there are three components within our spare parts index, ISRAS engines, LEAP engine, and CFM56. The largest positive surprise we had so far this year is coming from the ISRAS engines. You know that we have a minority stakes on all GE engines, and we do benefit from a strong volume and AVR work scope. Sorry. Sorry, that we initially... So that was the first good news so far this year. On LEAP, I would say slightly better than we had expected, but not far from our initial expectation. And then on CFM56, if I break down, you know, volume, it's mid-single-digit growth, as we've said since early this year. On pricing, we both benefit from the price increase we had in August 2024 in the high single-digit range. And we also benefit now from the mid to high single-digit range price increase that we had in August 2025. And the good news is coming as well from the War Scope, which is higher than what we had expected. So all together, this is why we have consistently and continuously increased our assumptions for spare parts starting the year with high single-digit plus. Now the guidance is And as I said, we are at the end of the first nine months at 19.5%.

Thank you very much.

Thank you. We'll now take our next question. This is from Sam Burgess, Goldman Sachs. Please go ahead.

Good morning, Olivier and Pascal. Thanks for taking the question. There was clearly very strong growth in services over the quarter. I know you can't quantify this exactly, but can you just give us a sense of the overall proportion of LEAP RPSH within the services revenue mix? And broadly, how should we think about margin there across services relative to spare parts? Is lower but improving the right way to frame it? And a second question, if I may, is there anything we should be aware of that may put pressure on the implied exit rate margin going into 2026?

Good morning, Sam. On your first question, LIPOR PSH is the vast majority for services revenues. Growth is coming from, you know, as we recognize revenues as per, you know, the cost. It means that we have more costs on these contracts, which is no good news. In fact, the reason behind that is that we have a different mix within our LEAP RPFH contracts today. We were performing a lot of what we call quick turns, so, you know, low-value show visits, and now there are more show visits in the mix So performance restoration shall be in the mix than quick turns compared to what we had anticipated, meaning more cost, meaning more revenue. So this is why we up our assumption to low to mid-20s. But by construction, it has no EBIT benefit because we know from the beginning of the year, you know, the value of EBIT we will recognize under our LEAP RPFH contracts because EBIT As we have disclosed and discussed as a capital market, we have a profit recognition methodology, which is fixed whatever the revenue level is. So no EBIT contribution from this upgrade in our assumption. And what was, sorry, your second question again?

Yeah, sorry, the second question was just going into 2026. Is there anything we should be aware of that may put pressure on the implied exit rate margin, given your new EBIT guide?

I'm not sure I got your question, Sam.

Is there anything we should be aware of for... Is your question FX or not? No, on margin, whether there's anything that could put pressure on margin going into 26 that we should be aware of.

Ah, okay. You mean globally or on proportion?

No, in terms of group.

Ah, well, we will guide, you know, in fact, for 2026. But Our view is that if I take businesses by businesses, starting maybe with aircraft interiors, our intent is to improve the operating margin by more or less 200 basis points each and every year if we want to be at 10% by 2028, which was what we discussed as the capital market day. Then in equipment and defense, I would say before Collins because we have still to evaluate, you know, the Collins impact. As you know, it will be dilutive in the first years. But before the Collins contribution, our target is to be at 15% in 2028. And we were last year at 12.2%. This year we expect to improve by at least 50 basis points or margin in equipment and defense. And we should continue to grow next year. And in proportion, we posted a very strong H1 at, I guess, was north of 23%. I remember that we say that the margin should improve by more or less 250 basis points this year. I would maybe revise slightly down this expectation, given that we have higher services. As you see, we up our assumption, and it comes with no EBIT, as I just said. And we will also increase lead deliveries, meaning more revenues, but all that is coming at a loss. So in proportion, I would say 200 to 250 basis points, but maybe on the low side of that range. So going forward, the key point will be on proportion, and we will discuss that in 2026, a bit early to tell.

Great. Thank you very much. Very helpful.

Thank you. We'll now take the next question. And this is from Olivier Brochet from Rothschild. Please go ahead.

Yes, good morning, Olivier. Good morning, Pascal. I would have two questions, please. In the newspapers a few weeks ago, there were discussions about potential disposals that you could be doing in interiors. I don't know if you can comment about that, but if you're doing these disposals, what will you be doing with the cash, please? And the second question is on the tariff impacts on free cash flow, if you could give us a sense of how this would play out in 2025, 2026, compared to the impact that you give for operating income, please.

Hello, Olivier. We will not comment specifically on basically those articles and those remarks. I will only reiterate what we've said back in 2021 and again at our Capital Market Day in 2024. We intend to sell and dispose about 30% of the Zodiac, ex-Zodiac portfolio. the majority of this perimeter is going to relate to interiors, the majority. Now, we've also said that we wish, we want to recover, let's say, the performance, the operational and financial performance of those activities before starting the process of disposal. And we are on that path.

Good morning, Olivier. On your question, it's a good question on the free cash associated with tariffs. On the EBIT side, so as I say, there's a net impact of a negative 100 to 150 million euros in 2025. The cash impact is higher than that for two very simple reasons. First, we have put in place what we call a duty drawback mechanism by which if you apply, you can get your cash back in some circumstances, but it takes time from the CBP, you know, to reimburse you. So part of what we see in EBIT in 25 will be cash back only in 26 and so on. And then, as you know, we are part of the mitigation actions is to take commercial actions with customers, meaning invoicing customers customers for the tariff surplus. And here again, there is a cycle for cash collection from our customers. So you would assume that the cash impact in 2025 is higher than the EBIT impact that we have disclosed.

That's helpful. Thank you. If I can go back on the disposals, my point was not so much whether you will do them or not. It was more on the use of the cash? Is this something that shareholders should think of as reinvested in the business, reinvested in external growth, or effectively as shareholder distribution?

Well, it depends on the size of the disposal. If we are talking of a few hundred million euros, or if we are talking of more than a billion euros, depending on what we can At this point in time, I guess we have a friendly approach to shareholders in terms of dividend and share buyback, so we need to execute on that. Now on M&A, as Olivier said before, it is always opportunistic because we don't know what kind of companies will come for sales, so we'll see with time. So we will consider, you know, what will be the cash use once we have finalized the divestment.

Thank you very much. That's helpful.

Thank you. We have one more question. This is from Ian Douglas Pennant from UBS. Please go ahead.

Thanks for taking my question, yes, Ian, at UBS. Firstly, just a quick one on currency. Could you just remind us of the translational impact here? So your guidance assumes 110, and we're obviously a little off that point today. So just, I know you hedge, but what's the translational impact, please? And then secondly, could you help us understand, are you still expecting a kind of fade in the market environment that you're seeing in Q4? which results in, you know, weaker revenue growth and weaker profit growth in Q4 as implied in your guidance. Could you just help us understand what the kind of offsets are there, please? Thank you.

Okay, good morning, Yann. On your first question, to provide clarity on the translation effect, first, in terms of sensitivity, one cent of FX change as more or less 150 million euros of impact on revenues, either way. We built our initial guidance at 110. What matters is the average spot rate over the full year. Year to date, despite the fact that we went up to 117, even 118 at some point in time, on average year to date it's 112. If we assume that Q4 will remain at 116, you know, for the full quarter, then you would assume that the full year average spot rate will be more or less at 1.13, okay? So it's 3 cents different from our initial expectation, which means no more than a half a billion euros of a negative impact on the full year sales, okay? Then on your Q4 question, Yeah, lower growth than what we had in the first nine months, but it's simply because of the comparison base, which was quite high last year. I don't see anything specific other than that.

Thank you. And we have no further questions, so I would hand back to the speakers for any closing comments.

Okay. Thank you for your attention. And have a good day. Have a good day. Bye-bye. Bye-bye.

Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect.