Electrolux Professional AB (publ)

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Very welcome to the presentation of our second quarter result today. I'm Ann-Sofie Jönsson, Head of Investor Relations. And with me today, I have our CEO, Jannic Fyrling, and our CFO, Therese Friberg. We will run through the presentation and then we will open up for a Q&A session. For those of you who are viewing on the web, Please feel free to put your questions in the chat throughout the whole presentation and we pick it up after in the Q&A session. So with that, very welcome again and over to you, Yannick.

Thank you very much, Anne-Sophie. Good morning to all of you. I'm very happy to be with you for these second quarter results. I will start with a few highlights. The first positive news we have to share with you is that we have been outperforming the markets with our three major brands, Electrolux, AEG and Frigidaire. The second point is about our operating margin. We have been improving our operating margin from 1.2% to 2.5% with a highlight, which is a positive operating margin in North America. And we have been delivering these results in an environment which has been pretty challenging with a very volatile geopolitical environment. So good progress on the short-term side of the equation, but we have been making as well pretty good progress together with the team on the ambitions we want to develop mid- and long-term. Let me deep dive into the numbers. First, we are reporting an organic growth of 1.8%, mainly driven by North America and Latin America, and partly offset by a slight decline in Europe, Asia Pacific, Middle East, and Africa here. The price was overall positive, mainly driven by price increases in the North American market and in LATAM, with a slight negative development in Europe, Asia-Pacific, Middle East and Africa again. I mean, the market in Europe, as you will hear it in a second, was especially depressed and difficult. From an operating margin perspective here, again, positive margin in North America for quite some quarters. We're also glad to report that we're making good progress in our cost efficient objective by delivering an additional 0.6 billion SEC year over year. The organic sales contribution was mainly due to North America and LATAM once again. We have been increasing prices in North America to compensate for tariff impact exactly as we have been announcing it in the first quarter. We had some headwinds. We had some headwinds in terms of currencies in Brazil, some headwinds in terms of currencies in Argentina with pesos. But again, we have been compensating these headwinds by price increases. I also want to report the sale of our trade brand Kelvinator in India for an amount of 180 million SEC. With that, let me deep dive into Europe, Asia, Pacific, Middle East and Africa. So we had a slight organic size decrease. I mean, on the other hand, the good news, on the good side of the equation, the Electrox and the AEG brand have been outperforming The European market, the market was extremely depressed. I mean, lower than in 2024 here. The market was predominantly replacement driven with a high level of promotion. So big pressure on the prices. We're also making good progress in phasing out the Sanusi brand, which, again, was an entry price band brand in the past. So positive earnings across positive contribution from cost savings in the region, pretty strong here. We had negative price development. The market was extremely competitive here. We have been drawn down in terms of prices by competition. However, we kept the marketing investment level at a pretty strong level because we want to make sure that we will be passing the right message in terms of products. And just before we had been opening this call, you could see one of the main campaign we're launching. And again, I just want to repeat the fact that we have been divesting from the trade brand Kelvinator for an amount of 180 million SEC. Once again, we're used to show this slide here. The market has been declining by 1% across Europe. I mean, it has been flat in Eastern Europe and it has been declining by 1%, a little bit more than 1% in Western Europe. So, I mean, absolutely no improvement versus 2024, which was already a very depressed market. We are 11% lower than 2019 in terms of volume in the second quarter here. So once again, 11% lower than 2019 takes it back to 2014 in terms of volume. I've been repeating that the European market is used on organic growth 2% to 3%. If you look at the 10 or 11 years between 2014 and 2025, we are missing about 20 to 30 percent of the volume we have been forecasting pre-COVID. So very depressed market still in Europe, subdued market. We did not see any movement in terms of kitchen and new constructions, which is, again, one of the strongholds we do have as Electrolux. Despite all of that, we kept our path. We kept on investing on the marketing side of the equation. We have been launching successfully the product, which is a new induction hob, which is anti-scratch and anti-fingerprint. Very successful launch in the market, which is completing basically the kitchen launches we have been announcing in Germany and in Europe. We're also very proud to say that we have been awarded 16 awards in terms of design. Design remains a very strong trait for Electrolux. It is a trait we want to differentiate ourselves from competition moving forward. I'm also very glad to underline that many of these awards went to vacuum cleaner. Vacuum cleaner, a product we have been inventing as Electrolux, and it is a product certainly we will be revamping moving forward. in the coming months and in the coming years. So very big success and achievement from a design side of the equation. Moving into North America. I mean, North America definitely has been outperforming the market. I mean, the market is down 1%. The organic growth we had in North America is at the level of 4.1%. It is again testifying about the good reception we're having from the new products we're launching out of the Springfield and Anderson factories. So very good momentum from a product launch we do have in North America. We have positive price movements. We have been announcing price increase at the beginning of first quarter. We have been executing this price increase. We were not followed by all our competitors, but I mean, this strategy paid back. And that's explaining why we are able to basically report out a positive EBIT for the second quarter. Good progress as well in terms of efficiency. We're glad to say that we have been achieving our targets in terms of cost saving and efficiencies in our factory here. Price lists have been increased and we will be keeping on increasing this price list as long as we will be impacted by tariff. So our ambition is truly to fully compensate tariff impact through price increases. We had some negative impact from the currency, which were compensated by a positive impact on the raw material side of the equation. Just looking at the market evolution here once again, minus 1%. The picture is very different from Europe because, I mean, North America was hit by a high level of inflation due to the trade war here. And the North American market has been pretty resilient in the first quarter 2025 and in the second quarter here with only a decrease of 1%. I am very happy to announce today a major launch of an innovation we have been actually putting on the market last Monday. It is pizza. I mean, a few years ago, North America has been launching the air fried cooking, which was extremely successful here. And here we're announcing probably innovation, which is at the same level. But rather than a lot of words, let me show you a short video.

Reimagine pizza night with Frigidaire's new stone baked pizza mode. The only oven that reaches 750 degrees for restaurant quality pizzas in as little as two minutes. Your oven comes with everything you need to start making pizzas right away. A pizza peel, pizza shield and stone. When you select stone baked pizza mode, the shield and stone are used to create a brick oven atmosphere in the upper part of the oven. That's how we can safely reach temperatures of over 750 degrees. At that temperature, your pizza bakes in as little as two minutes, resulting in a beautifully airy, chewy, crispy crust and perfectly caramelized toppings. Only Frigidaire can take your pizza night to a whole new level. But our new pizza mode is just one option within our most advanced cooking system, Total Convection, which offers over 15 ways to cook. So Frigidaire has you covered no matter what your family is craving.

You need to taste it to believe it. And I had the opportunity to taste it several times. It is really like in a restaurant. And that's thanks to a unique technology which is allowing part of the oven to reach a 400 degree Celsius in a short amount of time. You're able to cook your pizza only in a couple of minutes. Amazing reception from the North American market. We are available by one of our main retailers in North America since last Monday. We will be present on more than 4,000 shop floors for North America and Canada here. So major launch again in North America moving forward, and we have quite a lot of expectations out of this feature. Moving to Latin America, I mean, let's not forget when you were looking at these numbers that Latin America had an exceptional 2024 year with a heat wave here, a significant level of growth. We were hit end of 2024 by currency depreciation. We have been increasing our prices right way beginning of 2025 year. And that's explaining why we're able to deliver the numbers you see on this page. Interest rates have been increasing pretty significantly in the second quarter, which has been forcing some of our retailers to reduce the level of stock they had on the market. That's one of the major events and changes in the second quarter for Latin America. But still, very good results above the 6% in terms of margin. Moving to cost reduction and cost efficiency, we're glad to announce that we have been reaching a cost efficiency of 0.6 billion SEC in the second quarter, which is taking us to 2 billion SEC for the first half of the year. And again, I mean, the recipe is the same as the one I've been describing. during the last reviews. We're accelerating in terms of product cost takeout. We are sourcing in a better manner from best-cost countries. We're designing the product in a much better manner. We are driving for efficiencies in our factories. We're taking our costs down in logistic and quality. So good momentum here, and we're still very much committed to deliver the 3.5 to 4 billion SEC by year and in terms of cost efficiency. We're very proud of that. We absolutely be leader in terms of sustainability for home appliance makers across the world. And we are getting a lot of recognition, significant recognitions. We have been recognized three times by the Financial Times in 2023, 24 and 2025. We just got awarded as well by Newsweek and we got recognition. The gold medal in EcoVad is here, which is taking us among the 5% most sustainable company in the world out of 70,000 companies. Lots of recognition, big ambitions, big investments, but that's what we are, who we are as a company. With that, I'm passing it to Thérèse.

Yes, Yannick. If we then move into the next slide. We had an organic growth in the quarter, which also generated a positive contribution to earnings. And this was mainly driven by price. And as Yannick mentioned, we increased price in the beginning of the quarter in North America to offset the tariff headwinds. And in the beginning of the year, we have increased prices in Latin America to offset currency headwinds. So these were both positive to earnings. As also mentioned earlier, we had a negative price in Europe, Asia-Pacific, Middle East and Africa. And this has really contributed to quite tough market conditions in Europe where the market volume is still very much replacement driven and therefore a large part of the sales volume is sold under promotions. If we move to innovation and marketing, this was a slight decline in marketing spend year over year, but this is really a timing impact between quarter one and quarter two, since if we look at the first half year, we are increasing marketing to support our strong brands and product portfolio. With cost efficiency, we are on track and delivering 600 million SEK in the quarter and then are at 2 billion for the first half. External factors is negative where the main impacts are the negative from tariffs in North America as well as currency in Latin America. And on top of that, we are seeing some inflation on labor costs across the different regions. Acquisition and divestments, this is where you will find the 180 million gain that we made from the sale of the Calvinator trade brand in India in the quarter. And if we then take a look at the cash flow. So if we move, we had a negative operating cash flow after investments of 741 million in the quarter. And this was despite that we had positive earnings year over year as well as slightly lower investments year over year. So the negative impact is really coming from change in operating assets and liabilities, where we had two impacts that were impacting the quarter that are a little bit extraordinary, which is one is the 500 million approximately fine that we have paid related to the antitrust case in France that we have previously communicated. And we also had a negative impact from tariffs in North America related to that we are paying the tariffs much earlier than what we're able to recover them through collection throughout the value chain. Underlying inventories also increasing in the quarter. This is partly related to seasonal buildup, but also partly related to that the markets in the second quarter was below what we believe them would be at the beginning of the year and also very volatile market conditions. So this has also led to that operating working capital in relation to net sales is now at 6.1% compared to 5.1% one year ago. And if we then look at our liquidity and maturity profile, we have a strong liquidity of 28 billion including RCFs at the end of June. And we, including the pre-financing of the loan with EIB of $200 million at the end of 2024, we have pretty much refinanced all of the maturities in 2025. And during the quarter, we have also extended one of our RCFs of 3 billion Swedish krona up until 2027. We have a well-balanced maturity profile and no financial covenants, as you know. And the net debt to EBITDA is now at 3.5 times compared to 3.4 times by the end of 2024, despite a weak start to the year in terms of cash flow. And for sure, we have a target to remain solid in terms of our investment grade rating. And with that, over to you, Yannick.

Thank you very much, Therese. Let me take you through the outlook and summary. In the second quarter, demand for home appliances in Europe continued to be predominantly replacement-driven with high promotional intensity. Following increased economic uncertainty, the market declined slightly and the competitive pressure remained high. As we have stated earlier, the increased market uncertainty risks delaying a recovery of discretionary purchases in the important built-in kitchen segment. Housing construction and kitchen remodeling remained subdued, and the kitchen market in Europe was weak but stable at a low level. In a longer perspective, it is important to remember that the European market is on a 10-year low. For full year 2025, we reiterate our neutral market outlook for core appliances in Europe. The increased economic uncertainty in North America weighed in on consumer confidence, and the market declined slightly in the quarter, with consumers continuing to shift to lower price points. Least prices increased in the market to compensate for tariff-related cost inflation at the same time as underlying promotional pressure remained high. The demand outlook for a full year remains uncertain as the market price increases and general inflation due to tariff risk having a dampening effect on consumer demand. Consequently, we maintained our outlook of neutral to negative market demand for North America. In Latin America, consumer demand in the main market is estimated to have increased slightly in the quarter. Growth rates in Brazil were lower due to inflationary pressure and higher interest rates. Growth in Latin America has slowed as expected, and for full year we reiterate our outlook of neutral market demand for core appliances. Moving to the Electronics Business Outlook. Electrolux Group has a predominantly North American manufacturing footprint for sales in the region. With the current tariff structure, we are in a favorable competitive position and continue to implement price increases with the ambition to offset the impact for higher costs due to U.S. tariff. We reiterate that we expect organic contribution to EBIT from volume, price and mix combined for the group in the full year 2025 to be positive, driven by positive price to compensate for tariff and currency-related cost increases. The cost inflation related to increased tariff is included in external factors in our EBIT bridge. On back of a currency-imposed tariff, we stick with our outlook of significantly negative contribution to earning from external factors. It is important to note, however, that we are confident of offsetting tariff-related costs with increased prices. Currency remains a headwind, and the impact from raw material costs is expected to be relatively neutral. Growth and good capacity utilization of our factories is key for long-term profitability. New product launches provide us with a great platform to continue driving growth in our focus categories. We are getting good traction from increased marketing spend and will, as we have said earlier, increased investment innovation and marketing in full year 2025. Our focus on cost reduction is high, product costs in particular, but we need to focus on all cost items. We have had a good traction on cost reduction during the first half of the year and we stick to our outlook of 3.5 to 4 billion SEC in earnings contribution from cost efficiency in the full year 2025. Investments to strengthen our competitiveness for innovation, automation and manufacturing efficiency are essential to support growth and improving efficiency. Total capital expenditures for the full year 2025 are estimated to be between 4 and 5 billion SEC. I just would like to conclude on the five pillars I have been mentioning through the last two quarters and just give you an update on how we have been performing versus the five pillars. The first one was improve North America, the first priority we have. I'm glad to say that, I mean, in the second quarter, we have been outperforming the markets here with an organic growth of 4.1% and we're delivering for quite some time positive operating income in the second quarter. The second pillar is profitable growth. As I mentioned earlier, we have been losing in the past years too much substance, especially in a market which is depressed and subdued in terms of volume. We had a slight organic growth in a very challenging market, cruelly impacted by the geopolitical environment we're in. We have been improving our market position in North America and in Europe in terms of market share. Strengthening our market position here We did not save on marketing spending. We truly believe we need to fuel growth through basically the new marketing launches and the new product launches we do have in the different regions. We keep on innovating. We keep on innovating in a consumer-relevant manner here. And the pizza launch we have in North America is probably a good illustration. Cost reduction and increased efficiency, positive effect again in the second quarter here. We have been delivering up to 2 billion SEC in the first half of 2025 and we're committed to deliver 3.5 to 4 billion SEC through improved efficiency, mainly in the North American market, but across all the markets. Our transformation is critical for Electrolux. And again, I've been mentioning that the best combination would be the 120 years of legacy we do have as Electrolux, the knowledge we do have with customers, with the speed and agility we need to gain moving forward in a very volatile market. So we will be increasing our focus on this transformation. We'll be accelerating this transformation to deliver even better results moving forward. That's concluding my presentation.

So now we will move over to the Q&A session.

Very good.

And we start with the opening up for those of you who are on the conference call. So I would ask Emberlyn to take over and open up.

Thank you. To ask a question via the telephone, please press star 1 and 1 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Please limit to two questions at a time. If you have follow-up questions, please request to rejoin. To ask a question via the webcast, please type it into the box and click submit. A moment for first question. We will now take our first question from the line of Gustav Haggis from SEB. Please go ahead, sir.

Thank you, Operator. Good morning. Thanks for taking my question. I have a question on pricing in U.S. versus competition in Europe. You seem to experience a bit more competition and tougher markets in Europe, if I understand your question. your comments correctly, given that we're quite far down the cycle, it would be interesting to hear what you think the reasons are for Europe and the competition, and if there's a link here between perhaps pricing power in the US strengthening a bit, then competition being a little bit less fierce there, and maybe some more competition in Europe, if you see a redirection sort of competition from the US into Europe from Asia.

Thanks a lot for your question. I don't believe in all fairness that the competitive landscape is extremely different between Europe and North America. I think we find a lot of the same players across both regions. I think what we have been noticing is very different reactions in all fairness at the end of the first quarter versus the geopolitical uncertainty and volatility we saw in the market. I mean, in Europe, consumer confidence has been going down exactly like in North America. But what we have been seeing is that, I mean, the level of promotion we had in Europe was even more intense than what we have been observing in North America. Moreover, I mean, rather than going and buying appliances, I mean, the European consumer has been saving actually quite a lot of money. The reaction was pretty different. We are pretty impressed by the resilience we see in the North American market, on the other hand, because with the level of inflation we're observing, one could expect higher impact on the demand side of the equation. So the minus 1% was rather, I mean, a positive view on our side of the equation. I think the strategy we have been exposing, I mean, at the end of the first quarter was pretty straightforward. We truly believe that we do have indeed an advantage by producing most of our appliances in North America on the North American ground. And we have basically very good launches and innovation hitting the floor, the shop floors in North America. That's why we were well positioned to increase prices in North America at the beginning of the second quarter in order to fully compensate for the tariff shift. Unfortunately, I mean, competitors are not always rational, in all fairness, in following us. We had a couple of competitors who have been following us in terms of price increase. But definitely, I mean, our strategy has been paying back and delivering on expectation AI. It has been fully compensating for the tariff impact we have been observing in the second quarter. Very logically, because, I mean, we have been selling some of the stock in the second quarter, the tariff impact will be even more important in value in the third and fourth quarter here. But, I mean, we're very much ready to apply exactly the same recipe here and increase further prices moving forward in order to make sure that, I mean, we will be compensating for, again, for tariffs. The big question mark is obviously, I mean, how the market demand would be reacting. But the latest structure has been, relatively speaking, putting North American producer in a better position by taxing more production out of, say, East Asia. So I think we are pretty confident that we are in a good position, again, to execute further strategy we put in place in the second quarter.

Okay. And a follow-up on that, in the U.S., as you say, there are probably some inventories and other items impacting now short-term. But have you seen a gradual improvement in the pricing environment in the U.S. and promotional activity in the U.S. throughout the quarter, too? Do you expect the pricing environment for local producers like yourself in the U.S. to be gradually improving also in the second half? Or were you already there in terms of the full impact, you think, versus non-domestic competitors in Q2?

Yeah, great question. In all fairness, I mean, we have been, of course, observing the promotional intensity during the fourth quarter, the 4th of July week. And it has been basically be at the level we were expecting, not more aggressive than what we had been expecting. And we see some gradual movements as well now post-4th of July. Of course, I mean, some of the new tariff structure will be implemented on August 1st. So we're expecting to see more rationality, I would say, in this market, I mean, in the coming weeks.

Thanks. That's very helpful. Thanks for taking my question.

Thank you. Our next question comes from the line of Johan Eliasson from Kepler Chevrolet. Please go ahead, Johan.

Bonjour, Janik, Theresa, Johan, Sophie. This is Johan at Kepler Chevrolet. Just a question on your cost-cutting. And I thought it was a little bit lower in this quarter than I expected. And considering that you had a lot of the cost-cutting benefits last year in the second half of the year, I sort of assumed that the run rate would be quite high in the first half of this year. Is this just sort of comps or are there specific actions that seems to be driving more of the cost-cutting impacts in the second half of this year, rather?

Thanks for the question. Outstanding question. I think we should not be forgetting that we are reporting a year-over-year improvement. And I think the second half of the year was very strong in 2024. We had as well. I mean, we were ramping up in the second quarter. That's probably why you see an improvement versus last year in the second quarter. which is, relatively speaking, again, not as important as what you have seen in the first quarter. However, I mean, we are gathering in the first half an amount of money, which is 2 billion, which is basically more than half of what we are. what our target is by year-end. What I can tell you is, again, we will see year-over-year improvement, certainly in Q3, Q4. We are not slowing down at all in all the activities we're carrying forward in terms of better cost for our products, better sourcing for our products here. And I think we can expect basically the same level of focus, attention and deliveries in the coming quarters as well. But let's not forget, it's a year over year improvement we are reporting.

Good. And then on the cost subject as well, your marketing, obviously a bit better than I had in my numbers now in Q2, but you are guiding for increased marketing costs overall. Should we expect the second half to be on the same sort of level as the first half, or will this pizza launch in the U.S. bring up marketing costs in the second half to be significantly higher than what we've seen in the first half?

Yeah, I think in all fairness, I hope you would agree with me. We may have been a little bit too shy in the last year on the marketing side of the equation. We have been investing massively on the operational side of the equation. I mean, enhancing our factories in all the three regions. Now we have a product out of these beautiful factories. Now we need to market them. And we need to communicate around the features. I think that's only, I mean, I'm always used to say that it's refueling the growth here. And you probably saw the new tone of our marketing campaign here with a Safiamat induction hob that we have been showing previously here, which is this anti-scratch, anti-fingerprint, very resistant type of hob. So it's a new trend. It's a new tone we're giving. It's extremely important to communicate about the advantages and the innovation we do have when we're bringing to the market, which, again, are consumer-relevant innovations. The pizza feature would be one where we would be cooking, actually, pizza outside of the stores for people and our customers to taste this pizza. That's the way I think we should be communicating and marketing the new innovations we do have here, which are rich innovation. We should be able to take full advantage of them.

Maybe to add one thing... So if we expect it to be significantly higher in the second half, I guess we don't say that because, of course, in tough market conditions, which we also have in some parts of the world, of course, we will be looking at the external environment. I completely agree with Yannick that, I mean, this new innovation in North America, it's really a unique opportunity that we definitely don't want to waste time. And just as an anecdote, when we launched the air fry in the oven a few years ago, we can say that when we turned on the marketing campaign, actually the web page with our largest retailer that we co-partnered with crashed at that moment. So we also see what a type of reception we can really get from turning on the marketing campaign. And we will not lose that opportunity.

Thanks, Therese. And Johan, just to be very clear, we're always looking at what is the return on investment on any investment we're making on marketing. So that's something we're certainly closely watching and we'll keep on watching.

Excellent. And just finally in Europe, Sanussi, you're closing down that brand. How much did it impact in terms of revenue growth in the first half and how will that pan out in the second half?

Yeah, I think Europe has been an extremely tough market in the second quarter. We have seen very aggressive price levels in Europe. Again, we were very glad to see that AEG and Electrax were very well resisting gaining value market share across the region here. However, competition is fierce. I mean, we saw some improvement throughout the quarter in all fairness. So we hope that, I mean, this trend will be moving forward. But it is a market which is extremely sensitive to the external environment. And we may need to expect some additional bumps moving forward. But, I mean, we're well prepared. And, I mean, we need to really fight on the market with all the ammunitions we do have in order to keep on winning there.

And at this point in time, we are essentially now through the phase-out of Synosys. So there might be still some, of course, volume out in trade that needs to be sold through. So we still have a tiny, tiny market share if you look at the external data. But from our own sales, we are pretty much through the phase-out.

Okay, excellent. Thank you very much. Thanks, Johan.

Thank you. Our next question comes from Fredrik Yvesson from ABG. Please go ahead, sir.

Thank you. Good morning. Maybe first coming back to the pricing in the US. I mean, you were, I guess, quite quick on reacting to the tariffs. Have you sort of revised any of these price hikes due to the, say, recent developments?

Yeah, absolutely. Thanks. Thanks for mentioning it, because I said it. It was not a butter spreading type of price increase we made in the US. We had platforms which were more impacted than others from tariff. And we have been adapting our price list based basically on the impact we were expecting. We had the Memorial Day as well in terms of promotions. And in all fairness, we had to adapt. some of our prices in order to keep on competing with with the aggressiveness we saw around us and as i said many competitors did not increase prices so i have to recognize that the north american team was extremely agile and fast in reacting to market conditions which have been allowing us to keep both the organic growth we are reporting today which is this 4.1 and keep a price level Now, I think there will be a new structure, a tariff structure will be fully implemented on August 1st. And again, we'll be taxing more appliances which are produced today in Southeast Asia and who were benefiting from very low manufacturing prices and commodity prices out of China. So that's a positive news, certainly for North American builders here. And we should see an advantage here. But I want to repeat it. I will never repeat it enough. Our commitment as Electro-X is to fully compensate tariff by price increase in the market moving forward.

Okay, great. Thanks. And second, and sorry if you talked about this also already, I fell out of the call a minute. But I wonder if you can talk about what you see in the European market in terms of volumes coming in from Asia. Have you seen an increase in Q2 due to the tariffs or not?

What we see certainly is a competitive environment which is getting more aggressive in Europe. And certainly, I mean, despite interest rate has been going down, I mean, the purchasing power in Europe is pretty low. So we have seen a movement more towards, I mean, low price points here, low price points which can be fed in a very easy manner by Asian competitors in the sense that, I mean, production in Asia is, as I explained previously, significantly cheaper than and what we can produce currently in Europe and in North America. And that's exactly why I think the decision to leave entry price points, I mean, a couple of years ago on Electrolux was the right decision. I truly believe that with the level of innovation we do have, with the quality of the products we do have, I mean, we're a much better place to feed basically core and premium ranges in Europe. And that's what we're doing. And again, we're gaining more market share for the Electrolux and AEG brand when we're losing by phasing out Zanussi. So absolutely right decision. But to your point, yes, indeed, pressure is increasing, seems to increase in Europe out of, I mean, low price level type of products.

Thank you. That's my questions.

Thank you. Our next question comes from Bjorn Ennison from Danske Bank. Please go ahead. Bjorn Ennesen, your line is open. Please go ahead.

Okay, thank you. Yes, any comments on FX headwinds in the second half?