Autoneum Stock

So good morning, and thanks for joining to this special conference call. Autoneum has signed this weekend an agreement to acquire the Treves Group. It's an established supplier of automotive acoustic and thermal management solutions like Autoneum. Today, I'm sitting here together with Bernhard Wiehl, who will explain the strategic and financial rationale for this acquisition and of course, what are the next steps towards closing.

The key transaction highlights, which we will present in the first item, but we will also give an introduction to the Treves Group as well as present the financial rationale and the synergies. Of course, we'll conclude with the summary and then give the opportunity for questions and answers. We believe this acquisition puts Autoneum in an even stronger position for the future by adding a significant scale, capabilities and geographical reach. The combination of the 2 companies will create a business based on the pro forma 2026 accounts of more than CHF 2.9 billion.

The enlarged new company will create significant operational overhead and procurement synergies. Overall, we expect those synergies to be more than CHF 50 million, and those will be fully effective from the third year onwards being 2029. While in '27 and '28, we expect a normal ramp-up of those synergies. The related costs to achieve those synergies are estimated with CHF 60 million. As you can see, based on those synergies, we believe we have a very attractive EV/EBITDA multiple post synergies of 3.1x.

And even more important, we expect with the transaction that the earnings per share will be already accretive from 2028 onwards. At the same time, we confirm and reaffirm that we are committed to our financial discipline and are confident to return back to the 1.5x EBITDA multiple. With that, we are confident that the acquisition will bring significant operational and financial benefits and strengthen the overall company performance.

As a short introduction to the Treves Group, it is a privately held company since a 190-year-old family business, but it's also the fourth largest player in our product segment. It has a good reputation on their products and their technology, has a global reach with a balanced customer portfolio and generated last year EUR 720 million of revenue. It will complement Autoneum's manufacturing footprint, but also gives us access to some of the new markets being Romania, Morocco and regional presence in Brazil, where we are currently not present.

As you can see, the company of Treves adds meaningful scale to the overall Autoneum business, and it is very obvious that there will be significant amount of synergies. If you look also to the product and technology portfolio, the synergies are simply easy and visible as if we -- as Autoneum would present a virtual car with our products, it looks very similar to the one of Treves. Of course, all of the different product areas, Autoneum is also [ active ] and also from the same technology point of view. However, Treves has had a significant strength historically in the powertrain as well as the trunk area where we are maybe stronger in the body and interior.

So from that point of view, we believe it's a good complementary acquisition with clear synergies, and it will strengthen our capability to launch products and bring further innovations. Regarding the consideration structure, we have an initial purchase price of EUR 40 million. And there is an additional potential earn-out of up to EUR 24 million. It can be 0, EUR 12 million or EUR 24 million, depending on clearly defined financial KPIs related to the overall financial performance of the company, of the new company as well as the delivery on all of the defined synergies.

Even with delivery of all the financial synergies and the financial ambition, the maximum consideration will be EUR 64 million. Based on this, we believe the deal is generating significant value, is an attractive business case as the multiple post synergies is currently estimated at 3.1x. As explained before on the financial discipline, we ended the first half year just below 1.5x on the net debt/EBITDA ratio. At closing, we expect this to increase to 2.0x. But at the same time, there is a clear visibility and road map that on the midterm, we will be able to come back quickly to the same number being less than 1.5x.

From the upfront consideration, the EUR 40 million initial purchase price, 80% of that will be paid in newly issued shares. And the cash portion, which is EUR 7.5 million out of this EUR 40 million, will be paid from existing available funds. At the same time, the existing debt of Treves will be refinanced, and we have already secured an underwritten senior unsecured term loan of up to CHF 200 million.

To focus on the synergies as it is a clear synergy case, which is generating the value for Autoneum, we have defined 4 strong levers. First of all, the purchasing. It's obvious that with the leverage on larger volumes, we should be buying better, best of best of the both companies and leverage the increased volumes. At the same time and potentially even more important, the in-sourcing capabilities gives the opportunity for us to increase the utilization and capacity of Autoneum existing plants. Traditionally, Treves has bought their base material mainly externally, where Autoneum has this production capacity internally.

So from that opportunity, we would like to increase the vertical integration and improve the utilization. The third main lever is on SG&A. As presented before, it's clearly visible. There is a significant overlap on the overhead and not only overhead, but also all the different support functions where we believe this consolidation will provide significant synergies. And last but not least, the footprint where consolidation and a better utilization will create a much better cost structure. All of those synergies together will deliver at least CHF 50 million. We believe it will be larger than CHF 50 million. We have already today a clear plan developed through the clean teams and have a high confidence in the delivery of the more than CHF 50 million.

And with this, we are also highly confident to bring the financial performance of the current Treves Group to a similar or better level than the current profitability level of Autoneum. So maybe a quick insight in the footprint details. As I mentioned before, of course, there is a footprint overlap and complementary footprint from the 2 companies. So we will have the obligation and also the feasibility to do a consolidation of several manufacturing footprints. This will provide a higher capacity utilization and improved operational efficiency and a reduced structural cost. That is the one part.

But the other part explained before through the vertical integration will also allow to, again, based on the existing footprint of Autoneum, increase the utilization, improve the efficiency and reduce the structural cost as we will be better loading our base material lines and supplying Treves with our in-house base materials. On top of that, the footprint also gives some growth opportunities. Today, Autoneum is not present in Romania, in Morocco and has a partially covered country of Brazil. With the different sites of Treves, we will have a better coverage, increasing our reach to 1.5 million additional vehicles, which are today not covered and providing with that a competitive cost structure, close customer proximity and the opportunity for additional growth.

Regarding the time line, we signed last weekend the definitive agreement to acquire Treves. Of course, the formal approvals for the employee consultation and the antitrust regulation, we expect to take at least 2 months, potentially also 3 months so that an initial targeted closing date would be in the first quarter of next year or early of Q1 2027. Then with the results presentation in March, we would also provide new midterm targets.

In summary, we can say that the acquisition is clearly and will be clearly value generating for Autoneum. The EPS, the earnings per share, will already be accretive from 2028 onwards. The combined company will exceed in revenue of CHF 2.9 billion already this year. The synergies, as explained before, of more than CHF 50 million as well as that the purchase price with EUR 40 million and an earn-out of EUR 24 million. As explained, initial consideration purchase of EUR 40 million will be paid for 80% in shares. We will use for that the existing and already approved capital band. Those newly issued shares will be handed over to the current main shareholders of the Treves Group, which is the Treves family as well as Fonds Avenir Automobile represented by Bpifrance.

And those shareholders will then become shareholder of Autoneum and have also agreed to a lockup period of 3 years as they believe in the rationale of the combination and the value-generating case of combining the 2 companies. As said before, closing is expected in the first quarter, preferably early first quarter of 2027. Before going to the Q&A, I'd just like to underline and reiterate the fact that we, in July, showed an improved guidance for Autoneum on the free cash flow and the financial EBIT performance, and we continue to feel very comfortable with this improved guidance, which we gave to you in July.

That being said, we would be happy to answer any questions you might have. For that, you will have 2 opportunities. You can click on the text Q&A and type in your question. When you'll ask the question there, we'll have Claudia to moderate the questions there, and Bernhard and I will answer them one by one. Or if you want to ask your question via audio, then you will have to click the audio Q&A button, raise your hand, and then we will activate your microphone so that you can ask your question via the audio line. Please make sure that you have also activated and allowed the use of your microphone for this [indiscernible] platform. So that being said, again, either you have audio or via the text Q&A box. Thanks for your attention, and then we'll hand over to Ulrike for the Q&A.

Yes. There's a long list of questions since we are having 141 participants. We start with the first question. How many percentage points will the EBIT margin of Autoneum lower through the acquisition in the year 2027?

So I think that's too early to communicate yet. I think first, we need to make sure we get the regulatory approvals, so that we can combine the 2 companies. For sure, the results from Treves will be slightly dilutive to our current performance. But as mentioned before, with the synergies, we believe that in 2028, the earnings per share will already be accretive compared to the stand-alone Autoneum case. And especially then in 2029, the full effect of all synergies should be effective, which brings, for sure, the profitability of the current Treves Group equal or better to the current Autoneum performance.

Do you expect the Treves business to reach the 6% to 8% EBIT margin corridor earliest by when?

As mentioned before, I think we had the first half just close to the 6%. We are confident that with the synergies, Treves will also reach this level. And with the improvements we see in the coming years, for sure, when the synergies have all been materialized, we will be in the target corridor also for the combined company.

Your 3.1 multiple is quoted after synergies. What does Treves actually earn today before any synergies? Once I strip out the CHF 50 million or more of synergies, is there any EBITDA left?

I think we don't communicate on the financial performance of the stand-alone, it's a privately held company. So...

But what we can say, yes, it is positive EBITDA because the question was, is it left? We can clearly say they are lower on the EBITDA, but they have a reasonable EBITDA, which is lower than ours as said, but we are not allowed to disclose the private information in more detail at the moment.

Coming to next question. What is the current profitability of Treves pre-synergies EBIT margin?

That relates to the same answer, EBITDA and EBIT is relating to each other. So therefore, please accept that we are not allowed to go more into that at the moment.

Next question. The upfront price is small at about EUR 40 million, but you also have CHF 60 million of restructuring costs and CHF 200 million loan for Treves. What is the total cash Autoneum puts in 2027 to '29 before the synergy arrive?

I think we said that also in the announcement that we have onetime costs related to that acquisition. And I think this is the range what we expect, as I call it, nonrecurring restructuring related onetime costs, but the payback, as said, is already on a good level, already accretive in '29 with the EPS as said before.

Is it fair to assume Treves profitability will meet your midterm target range, 6% to 8% post synergies?

Yes, that is correct.

Next question. What were Treves stand-alone EBITDA and EBIT figures for 2025? And what are the expected figures for '26?

I think that's also similar to the question as before. So we don't provide further details than as Bernhard answered before.

The acquisition reminds of Borgers Automotive, which was also in distress. In that case, you first made sure that customer agree on new conditions. Does this also apply to Treves?

No. I think at that time, we bought the company out of bankruptcy. So in this case, it is different. The company in that sense is also not in financial distress. Of course, the financial strength of Autoneum is quite different. If you look to the financial performance and our debt structure is much stronger. I think we're one of the strongest in our industry segment. But again, there is no renegotiation of the prices upfront with the customer. We will have the discussions with the customers then after closing. But we believe the initial reaction of the customers will be positive on this transaction.

Will you book the provisions for the expected restructuring costs in half year 2 '26?

No. So they will be booked in '27, '28 based on the plans and the -- which have been developed to deliver the synergies.

But there's also, according to IFRS accounting, a clear ruling, which we are, at the moment, not to meet with the acquisition and the time line. So therefore, it's expected in '27.

Could you provide a detailed breakdown of the expected annual synergy of more than CHF 50 million split between purchasing, in-sourcing, SG&A and footprint costs?

Yes. So we will not, I would say, give the exact details, but we believe roughly each of the lever will contribute 1/3. So 1/3 through the material side, whether it's purchasing or the in-sourcing, 1/3 through the synergies on the overhead and 1/3 through the synergies on the manufacturing footprint. But again, we will not share the exact number of each of the different levers. But again, there is a clear plan, which we have developed through the clean team, and we are quite confident on those measures.

How much net debt are you acquiring with Treves? Or what is the enterprise value that you pay for Treves?

I think we -- for the financing, we mentioned the CHF 200 million, what we refinanced. We don't go into more details. We also don't disclose at the moment the complete EV, but you can assume it's more than CHF 300 million.

What about the R&D centers of Treves and Autoneum?

So I think both have their strength on their R&D centers. So we want to leverage the competence on both companies. Of course, we will evaluate where there is an overlap or potential synergies, which we want to benefit from, which are clear and obvious based on our product portfolio, but we want to use the strength of both companies as both, as I mentioned, have a good reputation in the industry and at the customer.

Do you have a repurchase option for the shares you give to the Treves owners post lockup?

No.

How big of a hurdle will the discussion with the unions, employee groups be, thinking of France specifically?

I think, first of all, there is an employee consultation process, which Treves will do in the next 2 months based on the current forecast. So we will get also the employee representation feedback on the structure and the deal we are proposing. Second, I think Autoneum has managed several restructurings in the last 3 years, whether that was in France, England, Germany, Czech Republic in a very constructive and relatively smooth way. And we hope that we can continue and are confident that with the same approach, we can manage that also later for the combined company.

Then there's a question with 4 sub-questions or 3.5. How much debt will you assume from Treves? What is the phasing of the cost synergies? And is Treves currently at EBITDA or EBIT breakeven? Or is it still loss-making? And the fourth question, only part of it survived?

So maybe just take the first.

How much debt will you assume from Treves?

I think I said it already before. We refinanced in total up to CHF 200 million. There will be -- the debt level is according to IFRS higher. And you have also considered there is a leasing portion as we have also leasing in our side, but we don't disclose the more detailed information at the moment.

What's the phasing of the cost synergies?

So the phasing of the synergies will ramp up in '27 and '28. The more than CHF 50 million will be fully effective in 2029. And the exact ramp-up between '27 and '28, we cannot yet disclose, depends on the execution of the different synergy plans, and we will, of course, share that over time with you.

Is Treves currently at EBITDA or EBIT breakeven? Or is it still loss-making?

It's still profit-making. I just turned it around. So it's still -- it's also not correct. They are profitable, also in EBIT, but we don't go to more details.

Okay. You aim to achieve annual savings of more than CHF 50 million, particularly by consolidating production facilities. How many plant closures and job cuts do you expect?

So today, we will not share the detailed plans. So we have done the preparatory work. Of course, the employee consultation process will now be ongoing. Then we need the regulatory approvals. And then we will follow the normal process after closing on defining the execution plans of the synergies. And again, we have a pretty clear plan where and how to achieve the synergies, whether it's on the footprint consolidation or the overhead reduction or also on the materials.

You will have a very high market share in some geographies. Do you expect any dis-synergies and pushback from customers?

There might be some pushback on a few customers, but a few is really 1 or 2. I don't expect a significant pushback because at the end of the day, the OEMs also want to secure a competitive and strong supply base. And with the new Autoneum, I believe that they have secured that. So the Treves Autoneum combination. Of course, we'll have to look what the individual market shares are. We are a strong player, but there is sufficient competition in the industry. And I think the consolidation is a required means for the long-term success of the Tier 1 industry in Europe.

How many new Autoneum shares will be issued to finance this transaction? And at what issue price will these be allocated?

Right? So those have not yet been determined because of the EUR 40 million purchase price, EUR 7.5 million will be paid in cash from existing funds and the EUR 32.5 million would be paid in shares. But there, we will have an average share price based on a certain period of time before closing. So that the exact number of shares will be then determined at closing.

After 2 acquisitions in China, does this acquisition now show that you still have confidence in Europe and the newly entered markets? Is there anything more in the pipeline for China?

I think, first of all, we have strategically done our job in China with the acquisitions, and we see the success in China through also a significant order intake, especially with the Chinese OEMs. And with that, we are now #2 also in China. The Treves acquisition is a further consolidation of the industry, which we said fits perfectly in the strategy as we look opportunistic for opportunities to consolidate and value generating cases. We believe that is the case. And we believe in our product segment and in our, let's say, industry because all the challenging messages you might get in the press through the transition to electrification or the pressure of the Chinese car manufacturers. All of that for us is, I would say, not critical because we supply our components to any type of vehicle, whether it's an electric vehicle and a hybrid or combustion engine vehicle. And with the increased share of the Chinese car manufacturers, we are also benefiting from that as we are very strongly present now in China. So we believe in our product segment, and we are confident in the long-term success.

Treves had to refinance its debt at the end of '25, extending the repayment of some loans until '28. Was the company under financial pressure when you entered into the acquisition negotiation?

I cannot answer. I don't know. I think everybody has pressure in the industry.

I think they had a refinancing done and secured. So therefore, I have no further details, but I think that was done and executed. So therefore, we don't see it critical.

Okay. Are the CHF 50 million of synergies coming in linearly or back-end loaded?

I would say it's still difficult to give exact detail. I would say it will follow the classical curve of implementation. But again, I would ask to be a little bit more patient until we can share more details on the timing of the synergies in which year. But again, the more than CHF 50 million, we are very confident on this number.

For '29.

For 2029, full year effectively.

What are the top line growth prospects for Treves comparable to Autoneum in the respective regions or different?

I think also Treves has a growth plan. Of course, we need to cross check the growth of both companies to avoid any potential double counting. But also Treves had an ambitious growth plan like Autoneum has. So that's -- we have to do an analysis what the combined company will deliver on. And that's why we will also update our midterm guidance because initially, we had the CHF 3 billion or then based on the exchange rate and the translation impact of the Swiss franc to CHF 2.7 billion. Now this year, most likely, we will end already above CHF 2.9 billion. So we have to revisit our midterm targets, and we will do that latest then in March.

Can we assume that more than CHF 50 million synergies are less than CHF 60 million because otherwise, you would have mentioned more than CHF 60 million?

I don't know. So it will be more than CHF 50 million, yes. Let's wait and see.

The most important is we have to strive for a cost competitive environment, especially in the markets also in Europe and North America, where we also rightsized our workforces over the years to the new volume reality, and we did it very successful and without a big noise. And this goes along with it. So therefore, we adjust our cost structure, and we continue on that. And also on the Treves side, the synergies come in so that overall, we have not only the synergies, but also then later on a very cost competitive structure to compete with the competitors, but also to be, I would say, competitive versus entering Chinese here, we are confident.

Okay. Once all synergies have been realized, do you expect Treves to reach a margin broadly in line with Autoneum around 6%?

That's correct.

What do you expect the phasing of the synergies to look like, probably hit in '27 and more in '28, '29?

I think we answered that before that in '26, there is no hit. We don't accrue for any of those synergies. So those will be -- the cost of implementation will be in '27 and '28 and the ramp-up of the synergies will also be '27, '28 and fully effective in 2029.

Given the Treves EBIT margin is below 6% and the acquisition is expected to be EPS accretive only from '28, could you explain how the 3.1 multiple is derived?

I think the 3.1 multiple is derived based on the current EBITDA performance, as Bernhard explained, which is already positive. Also the EBIT performance is positive. But then to add the synergies and then come to a 3.1 multiple to the enterprise value, we have estimated and used for the business case.

You mentioned a total enterprise value of more than CHF 300 million. Does this number include the earn-out?

Correct. It does include.

What does the whole acquisition mean for Treves employees? Have they been notified?

They have been notified, and there will also be the employee consultation process.

Aside from today's transaction, how will IFRS 18 affect your reporting main impacts and changes are enough? Will you continue reporting EBIT targets?

I think we face each public listed company according to IFRS, this challenge, but we will continue with these performance indicators, EBIT, even if it may be different EBIT ruling according to IFRS, but we will do that as MPM. So therefore, yes.

Can you share a bit more about the regional split of Treves?

I would say their main markets are Europe and North America. They are also present and complementary to our footprint and business in South America. And in China, they are relatively small. So I will not give exact numbers, but that is the rough distribution.

You said Treves is profitable even on EBIT, but the price you pay is rather low. So what's the catch?

I think there is no catch. It's a synergy case. I mean automotive is a tough industry. And I think we're happy that the Treves family and BPI both recognize the benefit of consolidating in the industry. And that's why they also are supportive of bringing the 2 companies together. It shows also their confidence by becoming a shareholder of the new Autoneum. So we believe it's a very simple value-accretive deal.

Okay. How will the current JVs and partnerships of Treves in different countries be impacted?

We have acquired or we have the agreement for the acquisition of the Treves Group, including all of their joint ventures. So we would, of course, have an interest to continue with the complete Treves Group, including all of their joint ventures.

Do you expect any issues or obstacles from the antitrust office?

We have done a prefiling. And until now, there has been no significant critical questions, respectively, no roadblocks identified, but we have to wait for the final evaluation.

Who initiated the transaction, the Treves shareholders?

I think it is a combined effort where some of the discussions have been quite intense and already over a longer period of time, but we're happy that we were able to conclude last weekend.

These were all questions in writing so far. I see one person dialed in via phone. Operator, if you can open the microphone of that person and then if the participant can open its microphone, then we can hear you.

This is Walter Bamert from Zurcher Kantonalbank. Can you hear me?

Yes, Walter.

Perfect. Can you say something about the quality of the plants and the equipment?

So I would say limited because, of course, today, as Treves is one of our main competitors in the market, we had to follow the strict guidelines through the clean team approach. But we know that from the customer feedback in general in the last years, Treves has good products, good technologies, acquired quite some new products and has had several launches. So I would expect them to have a reasonable to good footprint. Of course, we have some insight overall in the industry. So that's why we know that they are not so much vertically integrated as we are, but have overall a relatively good manufacturing structure there.

Does this acquisition form a small setback in your mono-material trend?

No, no, not at all. I mean we supply, for example, the new [indiscernible] range with the fully recyclable 100% polyester carpet. And I know that the company Treves also supplies such a fully recyclable 100% mono-material carpet to their customers. So it, I would say, continues to build on the same philosophy, and we can leverage the innovation strength of both companies there.

When will you be ready for the next big acquisition?

I think for now, we focus clearly on making this deal after the regulatory approval a success. And we're happy to do the consolidation. We always said that we want to generate value, be opportunistic when opportunities do arise, which is a clear opportunity for us now. So I think for now, we're good. We just want to deliver as we did in the last year. We just promise what -- we deliver what we promised.

Okay. Can you give us some background on the Fonds Automobile? I'm not familiar with it.

So it's a [ Fonds ] which has been created by the French state after the financial crisis. This Fonds Automobile is managed by Bpifrance, which is a state bank. I think in the heydays of the financial crisis or after the financial crisis, they had participation into more than 30 automotive Tier 1 companies. And since then, they have been a shareholder since the financial crisis in the Treves Group together with the family.

And they are still one of the main shareholders together with the Treves family. So you see also their long-term intent. And again, they will continue to become then a shareholder like the Treves family, but also this Fonds Automobile managed by BPI in the new Autoneum shareholder structure. And last but not least, in the press release, we also noted that they will apply for a seat in our Board of Directors, and we would also recommend them in the next general assembly to elect a representative of BPI to our Board of Directors.

I come to my last question, which is regarding the pro forma net debt to EBITDA figure for year-end of 2.0x. You calculate that with your existing debt, the acquisition debt and the acquisition payment, including the earn-out, I assume?

That's correct.

And then the EBITDA is the pro forma figure of combination of Autoneum existing plus full year of Treves plus the synergies or without the synergies?

Correct.

With or without the synergies?

The earn-out will be paid in case the EBITDA performance of Treves remains as is plus our EBITDA, targeted EBITDA plus the synergies.

So you calculated the leverage level at this year-end pro forma, including the synergy effects and also including the earn-out then?

Yes, when they occur over the time line. So we made a certain assumption for sure when the synergies will arrive, but also on the onetime costs when they arrive. So therefore, the leverage is not going [indiscernible] correct.

Yes. And the EBITDA is calculated, including those CHF 50 million pro forma?

Yes.

Good. Thank you. Then we have 2 more questions in writing. Do you expect plant closures or layoffs possible also in Switzerland?

I would say Autoneum has 1 plant in Switzerland. It's a very good and very successful plant. I don't expect any direct impact to that, especially as Treves is not at all present in Switzerland.

Do you still expect that the sales of new cars will increase in the next years? Or will the market be stable or even shrink?

I think here, we follow the general S&P data where there is a slight growth plan, so plus 1%, I would say, on average for the next years to come. But again, for the business case, we talk here about the acquisition of the Treves Group. It's not a growth case, it's a synergy case where we can generate value. And if the market would grow 1% in addition, that will be a positive additional benefit then for our case, which we presented today.

So far, this was the last question in writing. We have 16 more minutes in our call. So if anybody wants to ask additional questions, also no question in the audio line.

Then if there are no more questions, then thank you very much for the large participation and the many questions. We will keep you informed on the progress and the next steps. Thank you very much for your attention. Have a good day. Bye-bye.

Thanks a lot. Goodbye.

Ladies and gentlemen, thank you for joining us today for Autoneum's Half Year Earnings Call 2026. I'm happy to share a strong set of results for the first half of the year. Let me start with 3 key messages. The first half of 2026 confirmed that disciplined execution matters, especially in a subdued market environment.

While global vehicle production declined, Autoneum improved its financial performance, strengthened cash generation, further enhanced earnings and raised its full year guidance for both EBIT margin and free cash flow. These results demonstrate our ability to consistently translate operational improvements into stronger business performance while continuing to execute our strategic priorities.

Before we go into detail, let me briefly walk you through today's agenda. I will start with the key performance highlights of the first half of 2026. After that, our CFO, Bernhard Wiehl, will present the financial results in more detail. I will then come back to provide an update on our market outlook and our guidance for the full year. As usual, we will conclude the call with a Q&A session.

Please also note that this conference call may not be recorded for publication or broadcast. Let me start with the highlights of the first half of 2026. Autoneum performed well in a weaker automotive market. Global light vehicle production declined by 1 percentage point in the first half of 2026, while Autoneum achieved a 3% total growth in local currencies, of which organic revenue was 0.1%.

This means that we outperformed the global market. In the first half of 2026, Autoneum delivered a strong financial and operational performance. By executing our strategic priorities with discipline, we increased our EBIT margin to 6%, generated free cash flow of CHF 58.6 million, reduced net debt and further strengthened our balance sheet.

Across the regions, Europe, North America and SAMEA delivered strong contributions to profitability. At the same time, Asia showed solid top line momentum, while profitability was temporarily affected by integration efforts, new plant launches and continued price pressure.

We also advanced our innovation leadership in electric mobility and made tangible progress on operational sustainability, including, for example, energy efficiency initiatives that generate annual savings of more than 19,000 megawatt hours.

China remains the most competitive and fast-moving automotive market in the world. The market continues to be shaped by high volatility, intense price pressure, accelerating consolidation and the growing influence of local OEMs.

At the same time, these developments create opportunities for suppliers with the right skill, customer access and operational footprint.

In this environment, Autoneum continues to strengthen its position in China. While the market contracted in the first half of the year, our revenue in local currencies increased by more than 14%, driven by the contributions from our recent acquisitions of Jiangsu Huanyu Group and Chengdu Yiqi-Sihuan Group. These acquisitions have significantly expanded our footprint, customer access and local capabilities in China and strengthen our position as the #2 player in our market in China.

We are progressing per our plan with the integration of our recent acquisitions and realizing first synergies. This strengthens our growth platform in the world's largest automotive market, together with the recently announced 2 new plants in Wuhu and Anqing and continued business wins, including additional awards from Chery.

While continued price pressure, integration efforts and launch costs temporarily affected profitability, the strategic rationale remains fully intact. We have built a strong platform for future growth, synergies and deepened customer relationships in what has become the world's most important automotive market.

Building on our deep technology know-how and process expertise, we continue to expand our portfolio of innovative solutions for battery electric vehicles, addressing OEM requirements for safety, lightweight construction and performance. This expertise enables us to develop highly engineered solutions that combine material innovation and advanced manufacturing processes.

A strong example is our Spray Transfer Molding technology or STM. During the first half of the year, a European car manufacturer selected an Autoneum STM-based underbody shield for a new vehicle platform. This award validates STM as a next-generation lightweight composite solution for structural underbody applications and demonstrates its ability to replace conventional materials while meeting demanding performance requirements.

We are also seeing growing customer interest in our impact protection plate, which protects battery systems against impact, fire and corrosion. In the first half of 2026, we secured the first series production award for this technology from a major Japanese vehicle manufacturer in China.

This nomination represents an important milestone and further confirms the attractiveness of our shielding technologies. Together, these wins illustrate a broader trend. Customers are increasingly seeking integrated solutions that combine safety, lightweight design and performance.

With our expanding product portfolio of shielding technologies, Autoneum is well positioned to benefit from this growing demand and to further strengthen its role as a technology partner for the next generation of mobility. The second innovation example around electric mobility is our next-generation battery lid technology, which we unveiled last month at the Battery Show Europe 2026 in Stuttgart.

With this prototype, we further expanded our portfolio for electric mobility. The innovative composite design combines safety, lightweight construction and functional integration in a single component. It addresses OEMs growing demand for efficient and scalable battery housing solutions for future BEV and HEV platforms.

From a technology perspective, the battery lid enhances thermal and acoustic performance while improving the overall system efficiency of the powertrain. These innovations demonstrate how Autoneum combines its core expertise in acoustic and thermal management with the requirements of next-generation electric vehicles. And the numbers speak for themselves.

In the past 12 months, we have advanced 10 innovation projects to important development milestones and filed 12 patent family applications, of which 7 of them were in China. And last but not least, I would like to mention a recent milestone that makes us particularly proud.

Our Flexi-Light PET technology has been nominated for a 2026 PACE Pilot Award, widely regarded as one of the automotive industry's highest honors for innovation. The nomination recognizes a product that perfectly reflects Autoneum's approach to innovation. Combining outstanding performance, lightweight design and sustainability in a single solution.

Made entirely from polyester with a high share of recycled content, Flexi-Light PET delivers excellent acoustic performance while supporting circularity and end-of-life recyclability. We see this nomination as a strong validation of our innovation capabilities and are very much looking forward to the award ceremony on November 17.

Naturally, we hope to bring the trophy home to Autoneum. Our improved profitability in the first half of 2026 was supported by strong regional execution. In Europe, we continue to benefit from a strong market position, operational excellence and a loyal customer base. The region remains a key contributor to the group's profitability and demonstrates the benefits of our focus on efficiency and execution.

In North America, we maintained our disciplined approach to commercial and operational management. We continue to optimize our manufacturing footprint, including the consolidation of operations in Canada through the closure of our London plant.

At the same time, we navigated the evolving tariff environment effectively. Thanks to our local-for-local production strategy, our direct exposure remains limited, enabling the region to continue demonstrating resilience and a strong focus on value creation. In Asia, we continue to execute our growth strategy with a strong focus on integrating recent acquisitions, consolidating our footprint and realizing additional synergies.

At the same time, we further strengthened our position with Chinese OEMs and expanded our manufacturing footprint to support future growth. In SAMEA, we once again demonstrated the strength of our market position and our customer relationships. Despite operating in a highly inflationary environment, we continue to manage cost pressures proactively and effectively.

The region is also benefiting from a number of program launches secured in recent years, particularly in Turkey and South Africa, which are now ramping up production. As our most profitable region, SAMEA remains an important contributor to the group's performance, and we see significant opportunities to further expand our presence and grow the business. Across all regions, our focus remains unchanged: disciplined execution, operational excellence, customer proximity and the ability to adapt quickly to changing market conditions. These capabilities continue to support profitable growth and strengthen Autoneum's competitive position worldwide.

Our sustainability efforts continue to gain external recognition with the gold rating from EcoVadis and further progress in the CDP assessment. We are seeing tangible validation of the actions we are taking across our operations. In the first half of 2026, we continue to implement measures that improve resource efficiency and generate tangible savings.

In Scope 1, targeted efficiency measures resulted in annual fossil fuel savings of more than 11,000 megawatt hours. In Scope 2, operational excellence and technology upgrades generated around 8,000 megawatt hours of annual electricity savings. We reduced hazardous waste by more than 3,000 tons through material efficiency and waste reduction activities. Dedicated water reuse and leak detection projects are generating annual water savings of around 2,000 cubic meters across our operations. At the same time, we are advancing our decarbonization road map. Autoneum remains committed to increasing the share of renewable energy across its global operations to 25% by 2027.

As part of this road map, for instance, our Volduchy plant in Czechia recently launched a solar panel project with production scheduled to start in 2027. These initiatives demonstrate that sustainability and operational excellence go hand-in-hand. They reduce environmental impact, improve efficiency and support our long-term competitiveness.

Let me also highlight an achievement that is important for the long-term success of Autoneum. Our Swiss headquarters has once again been certified as a top employer in Switzerland in 2026. This renewed certification reflects the continued development of our people policies and our focus on creating a high-performance and inclusive work environment.

It confirms our progress in areas such as employee engagement, leadership development and organizational effectiveness. For Autoneum, a people-centric culture is not separate from business performance. It is an important enabler of execution, innovation and long-term success. By strengthening employee engagement and employer attractiveness, we also strengthen the foundations for sustainable performance across the group. And with that, I will now hand over to Bernhard, who will take you through the financial results in more detail.

Thank you, Eelco, and good morning, everyone. I'm pleased to walk you through Autoneum's financial performance for the first half of 2026. Starting with the key figures for the first half of the year. Reported revenue was broadly stable with CHF 1.15 billion compared with CHF 1.17 billion in the prior year period.

This slight decline of CHF 17 million was due to negative currency translation effects, mainly reflecting the continued appreciation of the Swiss franc. In local currencies, revenue increased both organically 0.1% and inorganically 2.9%, supported by the contribution from our 2 acquisitions in China and resilient underlying demand in Europe.

EBIT increased to CHF 69.8 million compared with CHF 61.9 million in the prior year period. The EBIT margin rose from 5.3% to 6%, which is at the upper end of the full year guidance we issued in March. The net result increased by CHF 5.6 million to CHF 46.3 million. Basic earnings per share rose to CHF 5.42 compared with CHF 5.16 in the first half of 2025.

Free cash flow amounted to CHF 59 million compared with CHF 48 million, excluding M&A effects in the prior year period. The key message is that Autoneum delivered on profitability and strong cash generation despite a subdued automotive market. This performance was supported by execution lever which are in our control, operational improvement, effective cost management and working capital discipline rather than by market tailwinds.

Let me now turn on our revenue development. Organically, revenue increased by 0.1% in the first half, outperforming the global automotive market, which declined by 1%. In local currencies, revenue increased by CHF 35 million or 3%.

Organic growth contributed CHF 0.8 million, while inorganic growth accounted for CHF 34.3 million, stemming from last year's acquisition of Jiangsu Huanyu Group and Chengdu Yiqi-Sihuan Group in China.

This positive development was more than offset by CHF 51.6 million of negative currency translation effects. As a result, reported revenue in Swiss franc declined slightly by CHF 16.6 million year-on-year. In Business Group Europe, revenue in local currencies increased by 2.1% with a positive impact from volumes and sales price changes.

This was better result than the overall market, which increased only slightly by 0.3%. Revenue in Swiss franc for the region rose to CHF 562 million in the first half from CHF 560 million in the year earlier period. In Business Group North America, revenue in local currencies declined by 3.5%, negatively impacted by lower volumes and transactional FX, among other effects. Volume were in line with the overall North American market, which fell by 0.7% in the first half due to softer demand and higher trade-related uncertainty. In Swiss franc, Business Group North America's revenue fell to CHF 377 million in the first half from CHF 421 million in the prior year period, additionally reflecting adverse currency translation effects.

Turning to Business Group Asia. Revenue in local currencies increased by 14%, driven by the acquisition in China. In contrast, the overall market fell by 0.8% due to weak domestic vehicle demand for light vehicles produced both Chinese and Western OEMs.

Consolidated revenue in Swiss franc rose to CHF 156 million in the first half from CHF 143 million a year earlier. In Business Group SAMEA, revenue in local currencies increased by 32.5%, driven by the inflation-related price adjustments and higher volumes. In contrast, the overall market in the Business Groups SAMEA fell by 6.1% in the first half due to inflation and economic uncertainty in the Middle East.

Business Group SAMEA's consolidated revenue in Swiss francs rose to CHF 68 million in the first half from CHF 55 million a year earlier. Moving on to the operating result. This bridge illustrates the improvement in Autoneum's earnings. 3 out of 4 regions contributed to the group EBIT increase. Asia was the main offset, reflecting recent integration costs and ongoing price pressure in a highly competitive market.

Group EBIT increased by nearly CHF 8 million to CHF 70 million in the first half and the EBIT margin improved to 6%. The margin improvement was driven by 3 main factors: better operational performance, disciplined price and cost management and structural measures to align capacity with demand.

These positive effects more than offset volume pressures, currency headwinds and temporary integration costs in Asia. In Business Group Europe, EBIT increased to CHF 33 million from CHF 24 million a year earlier, with the EBIT margin improving to 5.9% from 4.3%.

The improvement reflects the cumulative effect of structural measures already implemented following the consolidation of our footprint in Czech Republic, France, Germany and U.K. and tighter cost alignment. These measures are part of our broader effort to adapt capacity and cost structures to both current and expected demand levels.

In Business Group North America, EBIT rose to CHF 24 million in the first half from CHF 21.5 million a year earlier. EBIT margin increased to 6.5% from 5.1% as operational improvements and disciplined price management enabled us to offset lower volumes due to adverse market conditions.

In Business Group Asia, EBIT fell to CHF 7.9 million in the first half compared with CHF 11 million a year earlier, while the EBIT margin declined to 5.1% coming from 7.7%. Profitability was impacted by integration costs from the recent acquisitions, ongoing price pressure in the market and launch costs for the 2 new plants in Wuhu and Anqing in China.

Turning to Business Group SAMEA. Profitability remained strong in the first half. EBIT increased to CHF 9.8 million from CHF 8 million in the prior year period, with the EBIT margin remaining at a high 14.4%. This result reflects a strong operational performance and a successful price management in a region that continues to be affected by high inflation and market volatility.

Finally, EBIT fell by CHF 2.9 million for corporate and eliminations as we invested into our IT infrastructure by moving to S/4HANA, amongst other expenses. Overall, execution quality in Europe, North America and SAMEA drove the improvements in profitability.

Asia represents the main medium-term improvement lever. All 4 business groups delivered EBIT margin of more than 5% in the first half, confirming the progress we have made in strengthening our profitability in the recent years. Turning to the lower section of the income statement. The financial result amounted to minus CHF 7.1 million in the first half compared to minus CHF 7 million in the prior year period.

A higher net foreign exchange loss of CHF 1.6 million was mainly driven by less favorable valuation of lease liabilities in foreign currency. Interest expenses came in at CHF 2.2 million, lower than last year due to the decline in debt combined with the lower interest rates driven by the lower SARON and margin.

Income taxes increased by CHF 2.3 million, while the effective income tax rate was 26.2%, which is broadly comparable with the prior year period. Consequently, the net result increased by 13.7% to CHF 46 million. The portion attributable to Autoneum shareholders increased to CHF 31 million, and the basic earnings per share rose to CHF 5.42.

The main takeaways from the income statement is that the operational improvements are translating into sustainable earnings growth. Let's now focus on our cash flow. Cash flow from operating activities increased to CHF 85 million, supported by the improved net result and a favorable working capital development compared to the prior year period.

Cash used in investing activities fell to CHF 27 million in the first half because of the prior year period included a net cash outflow for the acquisition of Borgers. At the same time, capital expenditure was higher year-on-year, mainly due to the investments related into recovery at our A Rua plant in Spain following a wildfire last August that led to extensive property damage.

Free cash flow increased to CHF 59 million from CHF 16 million in the prior year period, which included M&A-related net cash outflow in the amount of CHF 32 million. Excluding M&A effects, free cash flow rose by more than 21%. The underlying free cash flow development demonstrates that the stronger earnings are not just a P&L improvement.

We have again converted this into cash. I will continue -- conclude the financial review on -- with the balance sheet. Total assets increased by CHF 43 million to [ CHF 1.81 million ] at the end of June, mainly due to FX translation effects of CHF 28.5 million. As usual, net working capital was seasonably higher in the H1 compared with the year-end '25, increasing by nearly CHF 14 million. Net debt declined by CHF 23 million to CHF 390 million, supported by our strong cash flow generation. Shareholders' equity increased to CHF 656 million, while the equity ratio edged up to 36.3%. This improvement was achieved in addition to the CHF 32 million in dividend payments to Autoneum and minority shareholders.

This stronger financial position gives us the flexibility to continue investing into our business while maintaining a disciplined capital allocation. Our priorities remain clear: improving operational performance across our global footprint, advancing innovation in acoustic, thermal and shielding technologies and generating synergies from our acquired business in the strategically important Chinese market.

With that, I will hand back to Eelco, who will take you through the market outlook and the guidance.

Thank you, Bernhard. So the financial results you have just presented provide a strong foundation for the next phase of our strategic journey. We improved our profitability, strengthened cash generation and further enhanced our financial resilience. I will now turn to the market outlook and our guidance for 2026.

Looking at the market environment, global light vehicle production is expected to remain under pressure in 2026. According to the latest July 2026 forecast from Mobility Global, global vehicle production is expected to reach approximately 91 million units, representing a decline of just above 2% compared to 2025.

The first half of the year remains soft with production of 44.8 million vehicles. Looking ahead, production is expected to improve to more than 46 million vehicles in the second half, an increase of 3.6% compared to the first 6 months of 2026. However, this does not mean that the market environment will become easy. The oil price remains an unpredictable external factor.

Regional developments will be uneven. Europe and North America are expected to remain broadly stable, while China and other regions continue to face a more challenging environment. For Autoneum, this means that we will continue to focus on what we can control, disciplined cost management, operational excellence, pricing discipline and the realization of synergies from our expanded footprint in China.

Based on our strong first half performance and the expected market development for the remainder of the year, we are improving our guidance for 2026. We reaffirm our full year revenue guidance of CHF 2.2 billion to CHF 2.4 billion. We are increasing our EBIT margin guidance to a range of 5.7% to 6.2%, and we are increasing our free cash flow guidance to more than CHF 110 million.

This improved guidance reflects the progress we have made through disciplined execution, operational excellence and stronger profitability across the whole group. In the first half of 2026, we increased our EBIT margin to 6% compared with 5.3% in the prior year period, while maintaining strong cash generation.

At the same time, we remain mindful of market uncertainty, regional volatility and continued price pressure, particularly in relation to the oil price, raw materials and the competitive environment in China. We will, therefore, continue to manage the business with discipline and agility.

This brings me to the end of our presentation. To summarize, Autoneum delivered a strong first half of 2026. We outperformed global market development organically, increased our EBIT margin to 6%, generated a free cash flow of more than CHF 58 million and further reduced net debt.

We made further progress in China, advanced our innovation portfolio for electric mobility, implemented tangible sustainability measures and strengthened our position as an attractive employer.

Looking ahead, we remain cautious and focused on our execution. With our improved guidance, we confirm our confidence in Autoneum's ability to deliver resilient performance in a demanding environment. Thank you for your attention.

Ladies and gentlemen, welcome to Autoneum's 2025 Earnings Call. Thank you for joining us today. I will begin with a brief review of our business performance in 2025, highlight our key achievements and then hand it over to our CFO, Bernhard Wiehl, who will walk you through the financial results in more detail. After that, I will return to outline our outlook for 2026 before we open the floor for Q&A. Please note that this conference will be recorded. We therefore, ask you not to make any recordings.

2025 was another demanding year for the global automotive industry. Market developments diverged strongly by region, volatility remained high and structural change continued to shape our customers' priorities. Against this backdrop, Autoneum delivered a resilient and high-quality performance. We achieved our full year guidance, strengthened profitability year-on-year and once again generated solid free cash flow, exceeding expectations.

Let me go briefly into detail about our overall performance indicators. Despite diverging global market developments, Autoneum delivered resilient revenue growth in 2025. Revenue in local currencies increased to CHF 2.39 billion, supported by 6.4% of inorganic growth. At the same time, we achieved a strong order intake for the second year in a row, underlining the sustainability of our growth momentum.

Profitability further improved year-on-year. Our EBIT margin increased to 5.5%, and the net result rose by more than 14%, reflecting continued operational and financial improvements across the group. Based on this performance, the Board of Directors proposes a distribution to shareholders of CHF 3.20 per share compared to CHF 2.80 in the prior year.

We also made clear progress toward our sustainability benchmarks. In 2025, we reduced Scope 1 and 2 emissions by 5.3%, lowered water withdrawal by 8.7% and generated 1,743 tons less waste year-on-year. These efforts were once again recognized externally with EcoVadis Gold status and the CDP A rating.

Growth in Asia accelerated significantly. Revenue in local currencies increased by more than 73%, driven by the 2 major acquisitions in China that expanded our access to leading local OEMs and accelerated regional development. As a result, 20% of our 2025 group order intake now comes from the Chinese OEMs, confirming the strategic relevance of this customer group for Autoneum.

Finally, we continue to advance sustainable innovations across our portfolio. In 2025, we expanded sustainable products groups with new innovations such as NJOINT1, Flexi-Light PET and BEV-focused E-Fiber technologies, including flame shields and impact protection plates. At the same time, we strengthened our innovation capabilities through the Shanghai R&D center, reinforcing our ability to develop customer-relevant solutions close to key growth markets.

This performance was not driven by short-term measures. It reflects strategic decisions taken early and executed consistently. Three factors made the difference in 2025. First, we continue to optimize our footprint and cost structure, aligning capacity with market demand.

Second, we maintained firm but fair price management across all regions. And third, we consistently translated operational improvements into margin expansion. The implementation of our company strategy Level Up is on track and moving full speed forward.

Order intake. Order intake was one of the key highlights for 2025 and remains our most forward-looking performance indicator. In 2025 alone, new business awards amounted to CHF 536 million in annual sales. This corresponds to approximately CHF 3.1 billion in lifetime revenue, including the new business awards coming from our new companies in China.

As mentioned earlier, almost 20% of the group's order intake in 2025 came from our Chinese OEMs. This strong order intake underlines how well Autoneum is positioned with its customers as a market and technology leader and represents a decisive step towards our long-term sales ambition. Order intake was well balanced across all regions and all product families as well as continued strong momentum in commercial vehicles, underlining the strategic importance of this segment.

Sustainability is a core pillar of our Level Up strategy and an area where we clearly aim to set the benchmark in our industry. In 2025, we made measurable progress across all key dimensions. We reduced water withdrawal by more than 8% year-on-year and implemented 140 eco-efficiency projects across our global footprint, targeting energy consumption, waste reduction and water efficiency.

At the same time, we continue to scale circular materials in our products. In 2025, Autoneum used more than 25,000 metric tons of recycled PET, reinforcing our leadership in monomaterial and recyclable solutions for vehicle interiors and exteriors. Our progress is also reflected in external recognition. As mentioned before, we achieved again an EcoVadis Gold status and received a CDP A rating, confirming our strong performance in environmental management and transparency compared to our peers.

Sustainability at Autoneum goes beyond environmental metrics. We were once again recognized as a top employer 2025, highlighting our commitment to a people-centric culture and responsible leadership in our key markets. For us, sustainability is not a compliance exercise and not a trade-off against profitability. It is a real competitive advantage that increasingly influences customer decisions, strengthens long-term partnerships with our OEMs and supports resilient value creation.

Let me now briefly look at our regional performance. 2025 was characterized by diverging regional market dynamics. What clearly made the difference for Autoneum was disciplined execution and region-specific steering. In Europe, markets stabilized after several years of decline, creating a more predictable environment. Through strict cost control and continued footprint optimization, we improved our EBIT margin to 5.3% and laid the groundwork for future recovery while continuing to position the region for BEV-driven opportunities, leveraging our lightweight and sustainable technologies.

We are confident and see further continuous improvement potential for the region of Europe. In North America, early demand strength was followed by a softer second half year, influenced by trade uncertainties like tariffs and decreasing volumes. Despite this, we increased our EBIT margin to 5%, driven by operational improvements and in strengthened cost base. This confirms the resilience of our turnaround and our ability to protect margins even in a less supportive market environment.

Asia was our strongest growth region in 2025. Revenue increased by more than 73% in local currencies, reflecting the impact of our China acquisitions, which significantly expanded our access to local OEMs and strengthened our regional development capabilities. Asia is now a key driver of above-market growth and an integral part of our global strategy.

In SAMEA, we delivered a stable and highly profitable performance despite a challenging inflationary environment. With an EBIT margin of 12.8%, the region once again demonstrated the strength of disciplined cost management and operational stability and local execution excellence.

Across all regions, we continued to advance our Level Up strategy consistently. This regional execution capability is a key reason why Autoneum can deliver resilient performance in diverging markets.

With that, I would now like to hand over to Bernhard Wiehl, our Chief Financial Officer, who will guide you through Autoneum's financial results for the year 2025 in more detail. Bernhard, please go ahead.

Thank you, Eelco, and good morning, everyone. I'm very pleased to walk you through Autoneum's financial performance for the year 2025. While market conditions remained challenging in several regions, we could once again deliver a solid profitability, cash flow and order intake.

I will now provide more details on Autoneum's key figures in 2025. Let me start with our revenue development. In local currencies, revenue increased by CHF 55 million to almost CHF 2.4 billion, right in the middle of our 2025 guidance. The main driver was 2 acquisitions in China. They contributed inorganic growth of 6.4%. In Swiss francs, revenue decreased by 2.1% to close to CHF 2.3 billion, driven by the strong Swiss franc, which led to a negative currency translation effect of CHF 103 million.

Note that the biggest impact came from the U.S. dollar, the Mexican peso and the Chinese renminbi. On an organic basis, which excludes currency translation and fluctuations, the M&A impacts, group revenue declined by 4.1%. This reflects weaker production volumes in several key regions and ongoing structural market shifts in China from Western and Japanese OEMs towards Chinese car manufacturers.

In Business Group Europe, revenue declined by 8.3% to just under CHF 1.1 billion. In local currencies, revenue fell by 7.6% or CHF 87 million. This result was mainly driven by 3 factors. First, production volumes in the region declined by 1.1% in 2025. Second, we are still experiencing some late impact from the Borgers acquisition. In the period before Borgers' insolvency in late 2022, Borgers was awarded only on limited amount of new business. This is reflected in our lower revenue from the former Borgers business in 2025. This impact will disappear over time as we pursue and secure new awards for the attractive Borgers product portfolio.

The third and final factor is our focus on profitable growth. It means we carefully choose which business awards to pursue and avoid projects that don't meet our profitability or return standards, even if they could boost short-term volume. These 3 factors also weighed on the performance of Business Group North America where revenue declined by 8.9% to CHF 806 million, a CHF 27 million or 3% organic decline in revenue. This was slightly more than the overall market, which declined by 1.2% aimed trade policy uncertainty.

Turning to Business Group Asia. Revenue rose strongly to 74% in local currencies, reaching CHF 326 million, fueled by 2 acquisitions in China. Organically, revenue fell by CHF 4.1 million or 2.1%, mainly because our largest customers in China, Western and Japanese OEMs continued to lose market share to their Chinese rivals. Going forward, we expect to reduce our exposure to OEM mix changes in the China market, thanks to our 2 strategic acquisitions that have significantly improved our access to Chinese OEMs.

In Business Group SAMEA, we once again delivered a strong revenue growth in local currencies of 17.7% or CHF 21.5 million. This was preliminarily driven by the significant price increase agreed with customers to compensate for very high inflation on several countries. From a volume perspective, this business group developed broadly in line with the steady market.

Let me now turn on our operating results. The group's EBIT margin increased further in 2025, reaching a 5.5% compared to 5.3% the year before. In line with our Level Up strategy to enhance cost competitiveness with a dynamic global market environment, we made structural adjustments in our European footprint and implemented reductions in head count across all regions. These measures, combined with the disciplined cost management, enable us to achieve an improved EBIT margin.

We view this outcome as a noteworthy success, especially given the performance of our peers and the challenging market conditions. Despite lower revenue in Business Group Europe was almost able to maintain its EBIT, which fell by just CHF 1.8 million in 2025. The region's EBIT margin rose by 0.3 percentage points to 5.3%, reflecting ongoing resilience.

This progress resulted from our commitment to operational excellence and the ongoing optimization of our regional footprint to better align our cost base and manufacturing setup with current and expected regional demand, while strengthening efficiency competitiveness and long-term sustainability. In the U.K., for example, the plant in Halesowen was closed and its activities relocated.

While the Heckmondwike site was also shut down to better align capacity with the market demand. Additionally, we reduced our head count in France, Germany, the Czech Republic and in Spain. While we incurred one-off charges in 2025, these actions are expected to deliver recurring savings, strong operational leverage and a sustainable uplift to EBIT from 2026 onwards.

Additionally, the sale of real estate in France generated a book gain in 2025. In Business Group North America, we made further strong progress. Our EBIT grew by CHF 8.2 million with the EBIT margin reaching 5%, now at the lower end of our target range for the business group. Relatively stable production volumes, efficiency gains such as lower scrap and higher labor efficiency as well as improved supply chain management all contributed to this encouraging development.

In Business Group Asia, EBIT increased by CHF 7.6 million, mainly due to the 2 acquisitions in China. The EBIT margin declined to 7.6% from 8.6% in the prior year. As we explained last year, the acquired business in China are dilutive to the Business Group Asia's EBIT margin, largely due to the additional amortization charges on assets capitalized as part of the PPA.

However, the acquisitions are still accretive to the group's EBIT margin. After an exceptionally strong year in 2024, Business Group SAMEA's EBIT fell by CHF 2.2 million. While the EBIT margin declined to 12.8%, it remains remarkably robust given the challenging economic conditions in the countries in which we operate. thanks to our disciplined cost management and effective inflation mitigation.

For Corporate & eliminations, EBIT fell by CHF 10 million, mainly due to 2 factors. First, lower revenue in Europe and North America affected the level of earnings from the group charges. Second, we had expenses related to the acquisitions in China. Overall, we achieved an increase in our group EBIT and EBIT margin, thereby successfully delivered on our full year guidance.

Now I would like to turn our income statement. We have already discussed revenue and EBIT, so we can start right away with the group's financial result of minus CHF 17.9 million, a significant improvement over the prior year. Interest expenses were reduced by CHF 3.2 million, benefiting from lower money market rates and reduced credit margins.

The largest positive impact, however, came from the less negative foreign currency loss, mainly driven by valuation gains in 2025 on lease liabilities denominated in foreign currencies, particularly in Mexico and in Czech Republic. Overall, net foreign exchange losses were almost CHF 8 million less than in the prior year, falling to CHF 2.4 million.

Additionally, the net loss on the net monetary position from hyperinflation accounting decreased to CHF 2.2 million compared to CHF 4.9 million in the previous year. Income tax expenses increased by around CHF 4 million in absolute terms, while the tax rate of 26.5% remains on a level comparable to the prior year. Consequently, the group's net result improved once again year-on-year by 14.6% to CHF 80.2 million. Basic earnings per share rose by 15.2% to CHF 10.34.

Now we come to my favorite. As you can see on the -- we achieved another year of strong cash generation in 2025. Our group's free cash flow, excluding M&A effects, increased to CHF 121 million, an improvement of CHF 11 million. This is particularly noteworthy given we have implemented structural adjustments that impacted our cash flow. It confirms our resilience of our operating model and our ability to generate strong and sustainable cash flows over time.

The higher net result and slightly lower investments in tangible assets in certain regions positively contributed to this result. However, net working capital was somewhat above previous year's level. This is mainly due to the strong order intake, which led to higher tooling inventories as well as the accrual for the unpaid insurance recoveries from the wildfire incident in Spain in August of last year.

Cash flows used in investing activities includes a CHF 54 million net cash outflow related to the acquisition of Jiangsu Huanyu Group and Chengdu Yiqi-Sihuan in China. Even including all these items, free cash flow came still in at a solid CHF 67 million.

Our strong profitability and cash generation also had a positive impact on the balance sheet, with the group's total assets reaching almost CHF 1.8 billion at the end of December. As a reminder, with 76 of 77 production activities located outside Switzerland, most of our assets are held in subsidiaries, denominated in currencies other than Swiss francs. This exposes our balance sheet to currency fluctuation, which are clearly visible as of December 31, 2025. For example, our total assets lost CHF 108 million in value due to the strong Swiss franc and shareholders' equity dropped by close to CHF 48 million for the same reason.

It's also important to note that the acquisition in China impacted almost all balance sheet items as shown in the table's M&A column. Nevertheless, the shareholders' equity ratio still exceeded 45%, considering the negative currency effect and the acquisition in China, this represents a moderate decline of 1.9 percentage points compared to the prior year-end 2024.

Turning to net debt. It remained almost stable year-on-year despite a significant impact from our 2 acquisitions in China and the dividend paid during the period. As we already discussed, free cash flow amounted to CHF 121 million and provided a strong underlying offset of these cash outflows. M&A consideration paid totaled to CHF 65 million and relates to the acquisition of the 70% majority stake of Huanyu Group and the full ownership of Yiqi-Sihuan. In addition to the purchase consideration, we assumed approximately CHF 36 million of net debt from the acquired Chinese legal entities.

Dividends paid in 2025 amount to CHF 31.4 million in total, including distributions to Autoneum shareholders and to minority shareholders in our joint ventures. Finally, with the strengthening Swiss franc had a negative impact on our P&L, it helped to reduce net debt with a positive impact of CHF 14 million. This is mainly driven by the lease liabilities denominated in U.S. dollar and in euro as well as some smaller bank debts denominated in Chinese renminbi.

Let me conclude with a look on our leverage, one of our key financial KPIs for the medium term. As a reminder, we are targeting net debt to EBITDA of less than 1.5x. As you can see on this slide, we have continuously improved the net debt-to-EBITDA ratio since 2022 through disciplined cash flow management and sustained profitability improvements. Despite the acquisitions in China, we increased our debt levels, we maintained the ratio at 1.6x in 2025, which is already very close to our midterm target.

In conclusion, this financial strength, our technological expertise and our reputation as a reliable supplier form a solid foundation for Autoneum's future. It supports both our organic growth ambitions and leaves some room for selective strategic transactions should attractive opportunities arise.

Thank you, and I will hand now back to Eelco.

Thank you, Bernhard, for the detailed overview. As you have seen, our financial results clearly reflect the progress we have made over the past year in terms of profitability, cash generation and balance sheet strength despite a challenging and volatile market environment.

Let me now turn to our outlook for 2026 and outline how we plan to build on this solid foundation as we move forward. Our focus in 2026 will remain firmly on execution of our Level Up strategy with clear priorities. Our growth ambition remains selective and profitable. We will continue to focus on high-quality order intake, prioritizing programs that meet our margin and cash flow requirements.

A key growth lever will be the global expansion with Chinese OEMs, building on the strong momentum we achieved in 2025. At the same time, we will further strengthen our position in commercial vehicles, where demand dynamics and content per vehicle offer attractive growth opportunities. We will continue to integrate our recent acquisitions and actively evaluate additional M&A opportunities where they create strategic value.

Growth for Autoneum is not about volume alone. It is about value-accretive growth. In a volatile and structurally changing market environment, cost discipline remains a decisive success factor. In 2026, we will continue to actively manage our footprint, adjust capacity where needed and ensure that our cost base remains fully aligned with market conditions.

We will further optimize SG&A structures, leverage scale effects and continue to improve productivity across our operations. At the same time, we will increasingly use digitalization and AI-based solutions to streamline processes and enhance operational efficiency.

Our objective is clear: to drive margins and cash generation even in a softer market environment while actively preparing for profitable growth. We also continue to actively shape our product portfolio toward long-term structural trends such as electrification, lightweight construction, recyclability and thermal efficiency.

In 2026, we will further expand our offerings for battery electric vehicles and trucks and accelerate the industrialization of cost efficient and sustainable solutions. Innovation remains a key value driver, supported by our global research and technology footprint, including the R&D center in Shanghai, which enhances customer proximity and speeds up development.

Sustainability is another core differentiator with continued scaling of recyclable and low-emission solutions alongside progress on our zero waste and zero CO2 road maps as detailed in our 2025 corporate responsibility report, which was also published today.

Finally, execution excellence is underpinned by engaged teams with continued investments in leadership and a strong culture of accountability and collaboration. Looking ahead to 2026, our focus is very clear. We will continue to execute profitable growth and efficiency actions across all regions, fully aligned with our Level Up strategy. In Europe, our priorities are continuously centered on operational discipline, improvement of plant utilization and cost measures.

We will carry on pursuing for truck and BEV-driven opportunities as well as leveraging our lightweight and sustainable technologies while ensuring that the cost base remains fully aligned with market conditions. In North America, our improved cost base provides margin resilience. In 2026, we will further strengthen operational stability and focus on continued footprint optimization and structural adjustments.

The focus remains firmly on execution and margin protection. Asia will continue to be a key growth driver. In 2026, we will fully leverage our 2025 acquisitions further strengthening customer access and launch local innovations to enable above-market growth.

At the same time, we will continue to integrate our businesses in a disciplined manner, ensuring that growth is profitable and sustainable. In SAMEA, our priority remains managing highly inflationary markets to secure our strong margin profile. Disciplined cost management and operational stability will continue to be the foundation for resilient performance in this region. Taken together, this action plan reflects our commitment to disciplined performance, regional accountability and consistent execution, the key levers for delivering sustainable value creation in 2026 and beyond.

Let me address our medium-term outlook. We have adjusted our revenue ambition to reflect currency effects, most notably the continued strength of the Swiss franc. Compared to our original 2024 assumptions, currency translation reduces our midterm revenue outlook by around CHF 300 million, resulting in an updated revenue target of CHF 2.7 billion at the current February 2026 exchange rates.

In addition, we factor in a reduction of around CHF 100 million due to weaker underlying market development. This impact is, however, fully offset by approximately CHF 100 million of outperformance versus the market, driven by our organic and inorganic growth.

As a result, our updated revenue ambition reflects both a more cautious market view and our ability to outperform on our growth ambition. Importantly, our fundamentals remain very strong. Supported by both organic and inorganic growth, we expect to outperform the market while our medium-term targets remain fully intact, an EBIT margin of 6% to 8%, free cash flow of at least 5% of revenue and a net debt-to-EBITDA below 1.5x. In addition, we remain firmly on track to deliver on our 2027 sustainability commitments, including a 20% reduction in Scope 1 and Scope 2 CO2 emissions and a 40% reduction in nonhazardous waste compared to the 2019 baseline.

Before turning to our outlook and our guidance, let me briefly address the market environment for 2026. According to the latest industry forecast, the global automotive market is expected to stay flat in 2026. Production volumes are anticipated to decline in the first half of the year, followed by a recovery in the second half, resulting in a small overall decrease on a global level.

The picture remains regionally diverse. In Europe and North America, we continue to see ongoing differences driven by ongoing trade uncertainties, cost inflation and a more cautious consumer environment. In China, domestic production is expected to moderate, while Chinese OEMs continue to expand their international footprint, particularly across Asia and other global markets.

Looking ahead, the outlook for 2027 appears more constructive, supported by stabilizing macroeconomic conditions and a gradual recovery in vehicle production. Autoneum enters this environment with a more competitive cost base, a clear strategic focus and a resilient business model.

As our products are not tied to a specific powertrain or drivetrain technology, we are well positioned to manage volatility across different market scenarios. Our strong regional execution, diversified product portfolio, continued emphasis on operational excellence, improvement of plant utilization, footprint and headcount optimization position us well to navigate this volatile market while continuing to deliver profitability and free cash flow.

Let me now turn to our outlook for 2026. As mentioned, according to the latest market forecast, global light vehicle production is expected to basically remain flat in 2026 with continued pressure in Western markets. Against this backdrop, we expect group revenue of CHF 2.2 billion to CHF 2.4 billion in 2026. Based on this revenue range, we anticipate an EBIT margin of 5.5% to 6.1% and a free cash flow of more than CHF 100 million. Thank you very much. Goodbye.

Thanks a lot.