Stabilus S.A.

Good morning and welcome to our quarter three results call. I would like to start this time around with the key takeaways for you. So first of all, yes, we completed the sale of Fabrika and Trech products. As you all know, starting 1st of May, we had the signing and the closing, signing on 7th of May and the closing was on the 23rd of June in 2026. Also very important to our business is for sure our personal related measures we are taking as a very important pillar to improve our business and to do a business transformation. This transformation program is basically completed, right? All personal measures have been taken and we are enjoying the fruits of this success. Important to know is also that we increased our covenant headroom. So our covenant now is also 3.9 throughout the year 2027. This is just to have some more safety and also to consider the requests of some of the shareholders and analysts who say we are getting too narrow in terms of the headroom we're having. And now we have a sufficient headroom also for the next 12 months in rough waters. This was a great achievement of our team negotiating with our banks. And you've probably read it over the course of the past week. We have intensive work along with Synapticon and are working on robots technology. This is something I will elaborate on at a later stage. Pointing out the two most important numbers. 299, so close to 300 million. That's the revenue number for the past quarter with 10.8% EBIT margin. And yes, the revenues are under pressure. We'll talk a bit throughout the conference why that's the case. And this is something I right away tell you at this page. It's right away driven by China and some China weakness in the market. that we are at the end of the day four, four and a half percent below prior year's sales number for the third quarter. However, we managed, even with these lower sales, having a better EBIT margin. And this is something we're particularly proud of. A big share is driven by also all these efficiency programs we are doing along the line. Last year we have been at 10.5% and this year is 10.8% so increase on EBIT margin despite of some lower revenues on the third quarter this year compared to prior year's third quarter. Technical stuff on the next page, you see some more details in terms of the transaction overview for the sale of tech and Fabrica tech products and Fabrica have been a good asset for us. We, at the end of the day, acquired them with a big acquisition in 2016. However, they are basically not in the core of our business and we put them held for sale 1st of May, had the signing 7th of May. It was a a flawless process to selling it to the VMC group. They, at the end of the day, have a broad portfolio in that term already, and it's very complementary to their portfolio. So they've been from the beginning very interested. It was at the beginning kind of a process where we had more interesting people or companies in the scope. But at the end of the day, we did narrow it down to the best option we had in both. thinking about the portfolio fit and also in financial terms for us. The enterprise value was 92 million at that stage and it was a successful business for us. We did grow it a lot and the margin was exceptionally good, was in the range of 30%. So revenue and EBIT margin 2025 were also remarkable and the closing did happen on the 23rd of June. Now, what did we sell? Just a reminder for everybody. This is basically, yes, some things in relation to management of vibration and velocity control. However, not really fitting in a perfect way to our portfolio. And you know that we are concentrating now on expanding on the automation side, the robotic side. And these elements, they have been to vast majority components for mechanical movements, rubber and plastic mounts. And this is at the end of the day what we sold. We have now a stronger focus on our core business with the electromechanical, intelligent motion control and automation business. And that's something to concentrate on because we'll hear something on this playground later on with a great collaboration we've been starting along the line. So what did we do in terms of this transaction? At the end of the day, as I said already, it's a wise move to basically concentrate on the core portfolio, which we do with that. We had limited synergies way forward, and we used the monies we got for deleveraging our balance sheet, and it's perfect fit to VMC Group, and they took on the complete business from us. This was a strategic decision, value creating for both sides. Yeah, I've been touching that point already. We are progressing in a big way with our move towards industrial business. Not only that, a couple of years ago, we bought DeSteco, which is a great success in terms of beefing up our margin, which is a great success in terms of sales opportunities we have, but also we're investing now in the smart rotary actuator business for humanoids. And this is just another pillar for us to strengthen our business. So why is that? And you see that over the course of the past years, it's wise for us to invest into the industrial space. I've been mentioning that our sales have been with 300 million, little less than last year, around about four and a half percent. However, our industry business, and we'll see that later stage is actually improving and it is year over year, 8% plus on the industrial space. So it was exactly the right decision we took to invest more and to foster our business on the industrial side, because also we are generating, aside of higher sales, we are generating nowadays majority of our profits in this playground because the margins we are tackling with the businesses are exceptionally good. If you see as an example, the stakeholder business and also other business opportunities like the Rotary Actors for Human Rights. and you please think about that it's 30 rotary actuators per um robot per humanoid robot you find them in all joints and we have basically an usp so what's our usp we started along with a well-known partner which is synapticon where we hold more than 10 percent of their shares A collaboration where we invested a low single digit million number to make sure that they develop along with us this robot joints and they are basically experts in motion control when it comes to software and safety. And you need a safety layer for these kinds of robots. The humanoid robots, they need a safety layer in case power is down or other things happen. This thing, they're pretty heavy, can't fall apart or can't fall onto people. And this is why there is a safety mode. Synapticon is working on the software. We are working on the mass production. As you all know, we are experts in mass production. And this is why we've been expanding our business in there and are now exclusive, working with Synapticon and are jointly selling these applications into the robotics employer, robotics supplier, robotics manufacturer. And the important thing to know is We did talk about that last week and we're talking now about it because we wanted to gather some facts before we get to our shareholders. because we are known for executing what we talk about. And this is what I also can tell you here. It's not like on this PowerPoint chart, but we already sent first samples to our customers, not only the hardware, but also including the software. So this was a great success, is a great success, and there is great growth coming up in that playground, as you know. There is for sure headwinds we are currently dealing with. I also would like to give you an update on the headwinds. The light vehicle production on the year-to-year comparison is now for the third quarter on 22.9 million. So if you add that up, we will not reach even the 19 million of produced vehicles this year. This is some headwind we for sure see because the automotive business is a volume business and we're just shy of 90 million. So we're behind the expectation of the market here. The market actually, the original thought was that we would be above 90 million. Now it's below 90 million for the year. And this is for sure adding some pressure along with competitive pressure in China. So Asia Pacific is and remains an area of highest competitiveness predominantly in China. We see here some pricing pressure and this will continue. We know how to deal with it, right? We have wonderful actions in place to deal with this pressure to come down with our costs. We're working on the purchasing side, on the operation side, dealing with our customers. However, this is just something which we, and this is the same for everybody else in the market, have to deal with. So, and then customer sentiment. I mentioned customer sentiment, and we'll talk a bit about that on the next slide, that we talk about the split of the business. But this is a concern as well, that the consumer sentiment is low. As I said, the industrial business is improving now. We see light at the end of the tunnel, but on the automotive space, it's still fragile. And then for sure, with all the geopolitical stuff around, there is a high attention of everybody on supply chain and supply chain disruptions. Talking a bit about our business setting and one thing you will see here, and this is different from last time we talked. The industrial business is gaining ground. We are now seeing an organic growth year over year of 8%. You see it on the top left in this box. 8% revenue growth versus the third quarter last year. Unlike automotive, which at the end of the day in an organic way was suffering minus 15% over last year. And this also confirms the great initiatives we did to foster and strengthen our industrial business. Strengthening our industrial business is and remains a main focus point. Automotive is extremely important for us because the nucleus of our success is automotive because with economies of scale, highest level of quality expectations. This market of automotive drove us as Stabelus where we are, being a leader in many, many different segments, leading by a very nice cost setting and also extremely good performance and quality level. This is why we are known in the industry for very robust product. And this is why we also have no issues at all expanding into the robot market. It's also a market which is highly competitive and ask for a lot of quality and quality aspects. And at the end of the day, quality guidelines, but we are able to deal with it. So what did happen in the market over the course of the past quarter? And this is an important chart for you. Automotive, yes. If you see the year over year change, it's even beyond the 13%. It's rather 15% organic side driven by market weakness and pricing pressure. And then we see the automation and industrial machinery sector stabilizing. Distribution independent aftermarket is growing. Commercial vehicle segment is growing. Energy and construction is growing. Aerospace marine rail and defense is growing. to an extent of 35% even. So all the initiatives which we've been doing over the course of the years, particularly also now with defense, are carrying fruits. We're growing, we're growing on the industrial side 8% organically, and we're growing in the sector where it really matters. the sectors which are highly profitable for us and where the customers really value our quality. And this is something which was extremely important in the past quarter that we saw and see now the light at the end of the tunnel in that term. Now let's talk a bit about the numbers. On the next page, you will find the first or the quarter three numbers, the revenue at the end of the day in organic way was minus 5%, almost 4.4 to 5.2. However, you see that the organic area was minus 4.4%. Some areas of FX were slightly positive even, but the soft market, particularly in the Asia Pacific, knocks us down in terms of revenues. And as I said, the important thing is, that the industrial business is holding up and getting stronger. EBIT margin likewise, and we have had 10.8%, which is remarkable considering this weakness on the revenue side. And this is driven because of our high share of industry business and also driven by the good initiatives we did to strengthen our portfolio in the industrial side. On the profit, you for sure see the effect now of Our our divestiture, you see the sale of tech and fabric products and fabric and this number, which was very good in terms of our profits on the cash flow. You don't see this effect because for sure we adjusted all these effects and are currently a little lower than last year. Same time around. And in terms of percentage is nine point five percent. This is basically driven by the lower sales and thereby less EBITDRV generated driven by sales. But however, the profitability is holding up very strong and it is and will remain stable because of the good and healthy mix we have now between automotive and industry. On the next page, you see the nine months view, so year to date. Actually, you see here that in terms of sales, there is a minus almost 6% in organic ways. Here, the FX rate is even more and having a bigger impact. The FX rate impact on the quarter three was only 0.6%. On the year to date, it's 2.2%. So that means the organic side is kind of flat over the course of the year. And the FX impact early the year was higher than it's now. And we also think that for the rest of the year, it will be rather reflecting the Q3 FX rate than the yearly average. However, on the performance for the complete year, we are at 10.7%. There is versus last year for sure this divestment effect of M&A. So that means the divestiture. of 1.1% negative for us. And then you also see here that there was good cost synergies with this takeover because of the 1.7 million overall profitability also here in this view impacted massively by the sale of tech products and fabrica. And they adjusted cash flow in the same range than last year, a little softer, driven by less revenues. However, on a strong position, nevertheless, because of the healthy business setting we have. Good. So we would need to switch to the next page, the next three pages. You basically see our next four pages is by region, starting with an overall view on the Stabilus as a group. You see here over the course of the past five quarters how sales we're doing and how profitability we're doing. So over the course of the quarters, a pretty stable picture, right, in terms of the EBIT margin The adjusted EBIT margin in the range of ten and a half to eleven point two percent with a very good upside and ten point eight percent even in the quarter three with a positive 0.3 basis points movement in terms of sales over the quarters. Pretty stable. However, as I said, the third quarter. was less than the third quarter prior year. However, the business mix for us was positive and this is why we've been generating good EBIT margins. So we would move on now to the different regions, starting with Americas. You know that early the year we told you this was that we are suffering some performance issues on the side of America. You see here the EBIT margins gradually improving over the past two quarters. We've been at 8.8% in quarter two and now at 9.5%. This is a good indicator that not only the business gets a little stronger now in terms of also the industrial business, But also here, some of these effects of our performance related issues in our plant of Mexico, we have been already settling and we are on a good way to also complete this journey in order to improve our business substantially and sustainably. And this is what we are working on. So on the next page, you see the EMEA picture. Here also similar picture, kind of stable this time around, right? You see the upswing towards the end of last year, but then in the range of almost 12% March in quarter three and the organic growth was Also similar 0.1%, so pretty stable compared to last quarter. Also not too spectacular here. However, we go on the next page and see the APEC region, and this basically comes down to China. And here you see a big swing, right? We see 20% over the course of the past year. And this is something which is an issue which we saw coming. That's why we've been talking over the course of the last quarters about it. The economy in China is particularly soft. We saw this effect right in the Chinese New Year. And if you remember back, it's our quarter two, we saw it being self with February, March after the Chinese New Year, where many people thought it would go upwards in terms of consumer sentiment, but actually did not. It is and remains soft. This is driven by the automotive market for us hitting predominantly on the side of power rise and likewise and similar is the margin. When we've been talking about the margin in various meetings, I always said that I expect that the Asia-Pacific margin on the long run is stronger than the company margin, but in the same range than the company margin. And this is something which we see as important for us. So we are actually here to date on 15% will be in a similar range as a target for the quarters to come. However, the organic growth we see also for the next quarter as an issue, particularly in China when it comes to discussion on the Asia-Pacific region. Good, so we continue our charts here. We see the adjusted EBIT margin improved by 30 basis points in the past quarter. This is also the Q3 view coming from 10.5% to 10.8%. I've been highlighting that already. Similar absolute range of around about 32.2 million. You see here on the right hand side, this big swing of the divestiture gains and then for sure the adjustments because whatever we've been making in a net way from our sale of Fabrica and tech products, we for sure adjusted. And this is the upside. The next effect was 44.4 million. We adjusted almost everything, aside of some costs which we had. And other than that, there are some impacts in terms of lower sales, so revenues. You see that on the left-hand side. And there's an effect out of that. We see that the EBIT margin in the third quarter came down a little bit, but it's in a similar range. And the EBIT margin in percentage improved to 10.8%. So on the next page, we see also here for sure in that view, basically the cash view in terms of Fabrika and tech products impact. On the left-hand side, I will start with that. However, you see the starting point of 66 million for the last year, and then basically some ups and downs in terms of M&A process, the divestment initiatives, which is also some sales related impact. So for sure, we also here adjusted the effect of the sale of fabric and tech products. You see this big 79 million green bar on the right hand side and then the adjustment of 73.2 million, which at the end of the day brings us to a like for like cash flow. 28.5 free cash flow third quarter year to date for 2026. So there is still a lot to do. However, we all know that this last quarter of the year is the strongest quarter for us in terms of cash generation. So we are confident that also here we achieve our guidance. And also, as we did narrow down our guidance, we'll anyway later on talk about the latest view on that. So I would switch to the next point. And this is extremely important chart for us, right? Deleveraging, without a doubt, selling fabric and tech products was driven as a strategic element. We want to concentrate on automation technologies, we want to concentrate on humanoid robots, and we want to grow in the industrial space. And this is working coming back to that point. You saw that quarter three last year to quarter three this year, the areas of industry are growing in almost all areas, predominantly in the area of independent aftermarket commercial vehicles, but also the areas of rail, air and defense. And this is something which is very positive for us. However, we've been selling fabric and tech products because it doesn't fit to this core strategy and we want to concentrate on the technical things which matter to us. We took the money and did pay back debts. And that's what you see here on this chart. The debt came down from 631 million to 554 million, so basically a delta of 80 million at most. And this is something which we're extremely proud of, and it brought down our net leverage ratio to 2.77. You would for sure ask now, why do you then go into the range of 3.9 with your net leverage ratio, take the covenant? We did that just to be on the safe side. And because we got the hint also from investors and analysts and shareholders that we basically are better off if we increase the headroom, which we did with our banks. And this is the result. And this is what you see here on this chart. So just a reminder how what to be owed to the banks. Right. There is 100 million and 150 million in terms of term loan facilities. One of them will basically run out next year. So we are on a refinancing for next year and then there is 350 in terms of a revolving credit facility and with a net leverage ratio of 2.77. We are actually in a safe side because now our maximum leverage ratio net leverage ratio is 3.5. It will be 4.0 throughout the financial year 2026 and then 3.9 throughout the complete year in 2027. You would ask why is such an odd number, right? 3.9 and not 4. This is something where we wanted to balance risk factors that the banks were discussing with and wanted to get it for a minimum premium. And this is why we have been staying below the four. So we are very stable with that. We achieved to deliver and to pay back debts. Now our depth is 554 million, which is along with 2.77 at net leverage ratio, absolutely moving into the right direction. And we'll continue keeping that as a main priority to delever and to reduce our depths for sure. Networking capital is at 20.5. There is also things to do. We have certain initiatives which we are executing as we speak. We have some financial initiatives which we're still doing, but also we have biweekly calls now with all entities to bring our inventories down because here we're also facing some headwinds, right? Our inventories, they are basically Coming down a bit and the accounts receivable and payable as well. So you see on the bottom right a business mix, which at the end of the day is typical for a movement to more industry, right? Payment terms are a little longer and for sure inventories are a little higher, but we're afraid fighting this effect you see us being successful already on the inventory side to certain share and we'll continue that path because the more we get into the industrial space the longer payment terms in average get and also the more inventory we need because in many cases you kind of sell products Only if you have them on the shelf, right? And this is something which we need to acknowledge. It's a little more capital intensive than the automotive industry. And this is something which we are balancing and fighting against, and we are pretty successful on that. And you will see that in the coming months. So on the next page, cost savings project, right? I can't repeat it often enough because we're progressing very well. This slide is pretty similar from the slides we've been showing over the course of the past quarters. And the restructuring expense has been executed to 7.6 million, so that's the utilization as we speak. The cash outflow in the first nine months was 7.3 million, so there's quite some cash still sitting there. And along from this accrual sitting there, because the accrual was way higher, it was a double-digit million, the cost savings in the nine months was 15.4 million. And you see the ratio, right? The cash outflow was 7.3 million. And now the cost savings are 15.4 million. It's a highly effective and good program for us. The expected savings will even further increase. So the full year 27 effect will be 19 million cost savings because, you know, we have been starting in the first quarter and step by step we are coming up with this savings and the 32 million reoccurring cost savings in 2028. So you see that in all angles, we do what we promised. We've been growing the industrial business. We invest where it matters. We know what to concentrate on with this divestment And at the end of the day, we're executing our cost savings initiatives. So on the next page, I would like to lead you through the transformation program. It's well on track, organizational transformation. The adjustments is in the execution phase. We've been a stronger customer focus with what we do here. We are reacting faster to the market, and this is something which we further want to strengthen and work on. Then there are location related measures. You know, these measures are the ones which take the longest because you need to be very sensitive on which locations you do what, because they're at the end of the day, the front runners in terms of your customer interface. And they are sometimes more difficult to move than other initiatives you're doing. And this consolidation of offices, production facilities is also here well on track. And there is more to come. That's definitely something which we concentrate on in the coming months. And personnel-related measures, I've been talking about that. It's executed. And that's what we're proud of. Investment also here, I gave the strong commitment that we will be below six in this year. So year to date, we've been below 6%, 5.8%. We know it's a tricky time. Some of the investments have a long introduction phase, particularly the ones which are important to work on the cost position and we will continue to invest in the new technologies and to get more cost effective. But you know, with the current business setting, we also acknowledge and see that there is less investment needed for capacities for sure. The business is flat on the automotive side and we'll see that or see this effect. And this is something which will also continue. I would like to highlight, we're coming to the last couple of slides here, the priorities which we're working on. So the swift execution of the personal related measures, right? The footprint optimization, organizational streamlining, and then the cost management itself. That's something which is on the cost side, right inside of this chart here, very important. However, we continue to deliver with that. We are ramping up the factoring. Right. And we also investing nevertheless in our future with good investments in terms of humanoid robots and working partnerships in order to make it happen. So on one hand side, we're managing the costs in the short, mid and long term. That's what you can be assured of. And on the other hand side, we don't miss out on jumping onto the trains of success for the future, which is equally important for us. Always having in mind that yes, automotive is our core business where we came from, but we want to strengthen our industrial business. So this basically leads me to the summary of nine months. For sure we are impacted by the market environment. Our local for local initiatives help us a lot to make us resilient with 10.8% EBIT margin in difficult waters and have been able to deliver massively. We did pay back 80 million in terms of debt and for sure with all I told you, we are very stringently executing the Star 2030 strategies we have on hand. So with that we go for the page where we talk about the market and economics. Right. There is a moderate outlook for the quarters to come. Yeah, we see some softer growth in Europe and stronger momentum in U.S. and China going forward. And as I said, particularly in the area of industrial business, things are holding up geopolitical tension. We always keep in mind also in terms of securing our supply base. And then the basically broader light vehicle production is in the range of 90 million. Here is 92 million. Let's see where finally the number comes up. This is something which has in the past quarter been with 22.9 million vehicle produced in a little shy of this number if you extrapolate it to four quarters, but it should be in the range of 90 million vehicles. to conclude the year for us. So talking about conclusion, I would like to also point out our guidance, which we did narrow down, but within the original guidance we gave. So we will end up being at 1.15 billion roundabout. We will be in the range of 10%, maybe a notch higher, but in the range of 10%. in the EBIT margin adjusted and the free cash flow at 90 million roundabout for the year. There's only two more months, as you know, right? For us, the year ends on the end of September. So there is August and September to go. And we're confident, very confident that we reach these numbers. Good. So with that, I would hand over back to our host and we would start the Q&A session.

Absolutely.

I'm happy to do that. First of all, we talk about these growth angles, right? You mentioned the door actuation. The door actuation is going very well. We've been launching it with Xiaomi in China. We are now filling the pipeline of parts and they start the Xiaomi production in August. Similar in Europe with BMW. We are the supplier for direct tuition for starting with the X5 series and they are also here now in filling the pipeline for in terms of sales. So both activities happen over the summer period. which actually is August and September so it's too early to say yet how this progresses then for the next year coming back to your question also in the future but for the time being it's absolutely in accordance slightly a notch higher than our expectation that's on terms of door actuation when it comes to the defense area We are in the execution. You mentioned the propulsion system. There is a rocket propulsion system, a nuclear propulsion system where we deliver the remote handling equipment. This is running on track. It's exactly in terms of our forecast, running on our forecast level and also making good progress. The humanoids is currently on a stage where we see first sales for next year. This will be on the low single digit million sales for next year, but kicking in as well next year. However, this year only by sample parts. This is important to know. The thing which goes positive is in general terms all these industrial businesses. However, and that's the point, and you're referencing also to the information we gave to the capital market two weeks ago, the industry of automotive in general terms is lagging behind. And this is something which we, and I mentioned that as headwinds, we took into consideration narrowing down the guidance. Why is that? Because we know that and we had exchange with our OEMs beforehand for sure. We always know this information from their EDIs a little beforehand and nowadays you probably heard over the course of the past last days that The majority of the biggest scale automotive customers have been dampening their outlook for the next quarter a bit. This is something which we saw coming already a couple of weeks ago. This is why we said, okay, let's consider that in our doings. Hopefully, it turns out a little better than this expectation is from the OEMs. Our current guidance on one hand side includes this cautiousness of these automotive suppliers because we got this heads up a little earlier for sure with our EDIs. On the other hand side we see very positive development on the direct rate as the defense area and in general terms industry and this is something which we see also going forward because I mentioned that our automotive business in an organic way is down 15% quarter over quarter, quarter three last year to quarter three this year. However, the way more positive and profitable industry business is up 8% year over year. And this is something which we think will be also strong in the quarter three. However, it will leave some marks on the sales side in terms of this automotive space. But we are making up some of it with more profitable industry business. So this shift from automotive industry, which is volatile, to the industry business with a good margin profile is working very well. We've been putting basically the money into the right basket with this initiative to strengthen industry business. I hope that answers your question.

Claude.

The incremental savings will be the 4 million. So as we stand here today at 15.4 million, we will add another almost 4 million for the rest of the year because there's only two more months to go now. And we had a steep ramp up. We wanted to execute all the savings early in the year. So there is 4 million to come. And then we have the run rate for 27, which is the 19 million. And then out in 28, it will be up to 32 million even because then there are some more operational savings coming.

Absolutely. Thank you very much for your question. Are there further questions?

Okay, so that's good. Let's start step by step. Yasmin, the first question is in Asia Pacific, we've been down 18% year over year. As you know, that is what we have in the numbers and you're absolutely right. The light vehicle production in general terms was basically flat. However, if you look into the details of the light vehicle production, the light vehicle production was predominantly strong in the small segment cars, in those OEMs also where there is low technical fitment of products. We are strong there with gas springs, right? This is also why we see there on the gas spring side a positive sign. However, if you go to the typical vehicles where you would have a power rise like the Jerry's, like the Western OEMs, unfortunately, and we hear in the press that the Western OEMs are just losing their shirt, also to certain shares still Tesla there, but also the known bigger Asia-Pacific suppliers for bigger cars or producers for bigger cars like Geely they are having had their difficulties in the last quarter particularly in the last quarter and this is basically what we saw our biggest customer is as you know on global scale VW and this is also something where we are strong at in China. Unfortunately, for example, VW and you hear that in all the media is basically suffering as well, this weak market and particularly a competitiveness issue. And with this lower sales on that end, for sure, we have a good stake in the Western world customers on the OEM side. And they're a little softer than we would have seen last year. So this is the reason overall light vehicle production. Yes, they produce the cars. But if you go into the segment analysis and then you divide it between Western World and local Chinese OEMs, then you see some shifts and there are some vehicles out there. I mean, BYD is also losing some shares, but they're still doing good in the volumes. But as you know, they produce the power rise on their own. And this is something in conjunction with the Western World OEMs being a little softer, which hurts us there. So the second part of your first question was the 10% EBIT margin. The 10% EBIT margin we will defend and will be even a little higher than that. Why is that? There are two elements to that in Asia-Pacific. One hand thing is we still have some cost levels we do. The Chinese now, as they're under pressure, they are rapidly working on technical changes. So our technical changes to come down with costs, they're on the run, they're in progress and we'll execute upon to them. And this will help us to get to maintain this margin position at one point. And then we also will further strengthen our industrial business, not only in the region Europe and North America, but also China. And this is why I'm confident that we stabilize the margin in China, even if the competitive pressure will continue. I hope that's answering your first question. I would say we see a softening of the price erosion. There is still year over year five percent price erosion, almost six. But And this kind of the pressure on the pricing side, they will maintain in China. This is a given, right? Because everybody in this industry is under pressure in terms of pricing. The important thing to know is that we have these technical levers to counterbalance this deterioration of the pricing. And then the other part is, as you well said, is the market softness. predominantly of Western world and higher ranked vehicle segment classes. So these two elements are important and 6% is around about 5 to 6% is price erosion in this basket. The content for the time being, and this is basically, we are talking now still at premature levels and we are basically producing on sample purposes, but you can calculate that depending on the size of the of the joint it's anywhere between in a final stage in two three years at 100 to 250 euro per joint yeah the value creation in that term between Stabilus and Synapticon is probably rather 40 percent to 40 percent is on 30 to 40 percent is on Synapticon and in the range of 70 60 to 70 percent on Stabilus The hardware is still the more expensive part because it requires a lot of precision parts and the software is pretty much scalable. I'm a little cautious with this number and I tell you why. Because this pretty much depends on the volume, right? Because software you do by a license and then the software depends just up to buy a million, two or three or 10 million parts. And then the software costs per part come down significantly, whereas a lot in terms of the mechanical parts is driven by the bill of material. But as a rational estimation, in years from now, 100 to 250 euro would be the cost of such a joint. That's too early to in detail talk about it. For sure we do a goodwill analysis every month and every quarter. For the time being we are confident and that's why also we passed the third quarter with the goodwill which we have in place. But for sure the reduced sales is something to consider in this equation. And these considerations are ongoing and it pretty much depends on how also the business will develop in the fourth quarter, particularly when it also comes to the humanoids and the effect of the humanoids. We are currently in discussions with various customers and are in the preparation of our outlook and the outlook for next year will be and this is where in just the midst of the budgeting planning basically go hand in hand to the fourth quarter and the full year. The full year result and this is basically something which we will review over the course of the next two months and then come up with eventually change. It pretty much depends on the budgeting and it's too early to say how the effect over the year will be because there are a lot of moving elements in there. But for the quarter three, we've been confident and had the goodwill on a level which was still good and acceptable.

Thank you very much, Yasmin. Further questions? Good, good.

If there are no further questions, it's also understandable because we're in the midst of vacation time, right? Early August. If there are no further questions, we would close the call and I would wish you a still good summer time. And if you haven't had a good vacation.