Ladies and gentlemen, welcome to the Kvaerczysche Midyear Results twenty twenty five Conference Call Live Webcast. I am Valentina, the Chorus Call operator. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. The presentation will be followed by Q and A session. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Andreas Miller, CEO. Please go ahead. Good morning, and welcome to our mid year results webcast. I'm Andreas Miller, CEO of GF, and I'm pleased to update you on our progress during the first half of twenty twenty five. Joining me today are our CFO, Mats Jurgensen, the Relations and Perth Wilmer, Head Corporate Communications. Let me begin with Slide two and a brief overview of the highlights. In the first six months of the year, GF's Flow Solutions business once again demonstrated its resilience in uncertain times. Our strong positioning in infrastructure, our innovation driven portfolio and our balanced regional presence enabled us to seize opportunities despite a mixed market environment. While the global environment remained turbulent, shaped by geopolitical tensions, U. S. Tariff related uncertainties, a strong Swiss franc and a hesitant investment climate in some industrial markets, we stayed on course. This is also reflected in our strong customer order intake, which was organically 5% higher than in the first half of twenty twenty four. We continue to advance our strategic transformation to become a pure play leader in flow solutions. In May, we announced the acquisition of the German BAG Group, a leading provider of mission critical metal butt off technology for water applications. At the June, we closed the divestment of GF Machining Solutions. The divestment process for GF Casting Solutions is well advanced. Closed the divestment of GF Machining Solutions to United Grinding Group at the June. The agreed purchase price of CHF $630,000,000 resulted in a onetime book gain of CHF 140,000,000. These proceeds were used to repay the loan related to the OpenOire acquisition. They are already strengthening our financial flexibility and setting us up for future value generating investments. The divestment of this division marks decisive milestones in accelerating our portfolio transformation. Transaction is expected to close in the next six to nine months. We expect the fair market bank In the high double digit number. High double digit number. Okay. We have a technical issue. We have a technical issue. We have the backup line working. Is it okay now? We expect okay, I'm going to repeat my last sentence. An additional point, the sale of the GF Machining Solutions building in Beale, Switzerland, which is not included in the main transaction, is expected to close in the next six to nine months. We expect a fair market value for the building in the high double digit millions. Let's turn to our core business going forward and take a look at the corresponding key performance indicators on Slide four. Our Flow Solutions business, spanning industry, infrastructure and buildings, generated billion in sales, holding steady year on year. As mentioned, organic order intake grew by 5%, reflecting robust demand despite sector specific slowdowns. Negative currency effects impacted sales by million. Excluding items affecting comparability, the EBIT margin reached 10.4%, 1.3 percentage points below last year, however, underlining the operational robustness of our Flow Solutions business in an evolving landscape. Including these effects, the reported EBIT margin stood at 9.5. Both numbers include estimated proportionate corporate costs. Moving on to Slide five. In addition to resetting our focus for the divestment of GMAT machine solutions, hundred AEG brings mission critical metal valves technologies to our portfolio for water applications, including pipes, fitting, valves, connection technology, and storm water management. The acquisition will strengthen our footprint in the infrastructure sector, particularly in Europe and The Middle East. It will also support our ability to serve customers who depend on us to keep water flowing reliably, especially in urban and climate sensitive regions. The transaction is expected to close in the second half of twenty twenty five. Slide six. The initial spark for GF's transformation process and its integration continues to progress ahead of schedule. We are on track to reach our synergy target of CHF40 million to CHF50 million at full run rate by 2027. In the first half of twenty twenty five, we achieved CHF14 million in EBIT level savings, double compared to the CHF 70,000,000 in the same period of 2024. A single procurement team is now in place, The extension of the Uponor AquaPlex product line with GLS ClorFit enables us to deliver complete domestic water solutions for commercial buildings in The US. I will come back to this topic a bit later. We are also optimizing our footprint across Europe with consolidation efforts in Poland, Turkey, and Italy. In addition, we have started to streamline our corporate functions such as IT, HR and marketing and communications by implementing the one gf operating model. 76% of our sales are linked to better solutions products with software product development protections, bringing us close to our adjusted 2025 target. These achievements demonstrate a high degree to which we have integrated sustainability into our business model. We further reduced our Scope one and two CO2 equivalent emissions by 55% compared to the H1 baseline, and our accident rate improved further to four point zero, surpassing our 2025 target. The share of newly appointed women in management reached 32% Underlying our Ladies and gentlemen, please hold the line. Okay. Since we have a technical issue, I will repeat from the beginning of Slide six the Oberono integration. In addition to all the strategic milestones we reached in the first half of twenty twenty five, I would like to speak about our continuing efforts with regards to the integration of Openor, GF's most significant acquisition in DK. Openor provided the initial spark for GF's transformation process and its integration continues to progress ahead of schedule. We are on track to reach our synergy target of 40,000,000 to 50,000,000 at full run rate by 2027. In the first half of twenty twenty five, we achieved CHF14 million in EBIT level savings, double compared to the CHF7 million in the same period of 2024. A single procurement team is now in place and our commercial integration initiatives, including a compelling joint product offering, are beginning to gain traction. Both initiatives contributed to greater efficiency and improved business momentum. At the leading European trade fair ISH, we showcased our compelling combined product portfolio, as you can see here in the images. We have launched a new product line not only in Switzerland, but also internationally. The extension of the Oberlois AquaPEX product line with GF's Glorfit enables us to deliver complete domestic water solutions for commercial buildings in The U. S. I will come back to this topic a bit later. We are also optimizing our footprint across Europe with consolidation efforts in Poland, Turkey and Italy. In addition, we have started to streamline our corporate functions such as IT, HR and marketing and communications by implementing the one gf operating model. Let's move on to sustainability on Slide seven. Sustainability is another area where we made good progress. As of midyear twenty twenty five, 76% of our sales are linked to growth solutions products with social or environmental benefits, bringing us close to our adjusted 2025 target. These achievements demonstrate the high degree to which we have integrated sustainability into our business model. We further reduced our Scope one and two CO2 equivalent emissions by 55% compared to the H1 baseline and our accident rate improved further to four point zero, surpassing our 2025 target. The share of newly appointed women in management reached 32%, underlining our strong focus on diversity and inclusion. She has efforts were once again recognized by the Carbon Disclosure Project, CDP, as well as by highly regarded publications such as the Financial Times Times Legacy. Let's take a closer look now at our two Flow Solutions divisions, starting with GF Industry and Infrastructure on Slide eight. The former GF Piping Systems division saw diverging dynamics. Infrastructure sustained growth across Europe with solid demand in The Middle East and Northeast Asia, supported by a healthy project pipeline. Meanwhile, tariff and geopolitical related uncertainty led to delays in industrial investment, particularly in the microelectronics sector. Sales reflected solid organic growth of 1.6%. Even stronger and this underscores the robustness of these businesses was the customer order intake with organic growth of 7.4%. An unfavorable product mix and currency movements negatively impacted the division's EBIT and led to a comparable EBIT margin of 11.5% in the 2025 compared with 13.7% in the period a year before. However, cost saving measures across the organization and progress made in the value creation program helped to partly mitigate the negative impact. Let's move on to Slide nine. The world's largest ground based telescope is currently being built in the Chilean Atacama Desert, an altitude of more than 3,000 meters above sea level. With its massive 39 meter primary mirror consisting of 800 segments and other advanced adaptive optics, it is designed to capture images of other planets, stars and galaxies with a resolution 16 times sharper than that of the Hubble Space Telescope. GM provided a complete process automation package for this project, including manual and automated valves, as well as critical measurement sensors. This package plays a key role in maintaining the telescope's mirror in excellent condition and ensuring its smooth operation by precisely controlling the flow and temperature of its critical substances. The pioneering project is expected to become operational in 2029. Let's move to Slide 10. One of the most pressing challenges in Europe's energy transition is transporting electricity from offshore wind parks in the North to industrial centers in Central Europe. This requires robust, high capacity underground power networks. With our advanced cable protection systems, we are playing a vital role in enabling this shift. Our polyethylene 100 RT technology can withstand high continuous and peak temperatures, making it ideal for HVDC applications. Our full system solutions includes fittings, welding machines, quality assurance services and digital tools like the Weldin Air app for traceability. This holistic approach not only helps safeguard energy transport, but also accelerates project execution and reduces costly rework. The image seen here is of a power line in Lower Saxony, Germany that uses our full system solutions. Let's turn now to Slide 11 and to GF Building Flow Solutions. GF Building Flow Solutions sales amounted to million. Taking into account the closing of one plant in Italy and one in Turkey and the corresponding discontinued product line, the organic decline was 1.6%. Also sales in The U. S. Were flat. They outperformed The U. S. Market overall. New housing starts decreased by 1.1% in the first half of twenty twenty five compared to the previous The markets in Europe showed a mixed picture with regional differences. The value creation program and cost saving initiatives supported the comparable EBIT margin increase from 9.2% in the 2024 to 9.7 this year. The new combined offering as presented to customers at the leading European plumbing trade fair ISH positions GF as a one stop partner for comprehensive and integrated flow solutions for buildings worldwide. Key innovations such as the eco friendly digital shower system, which receives both innovation and design awards, further strengthens our competitive position in our target markets. Let me share an outstanding example of how GF Building Flow Solutions is contributing to iconic sustainable urban development on Slide 12. In Austin, Texas, we are supporting the construction of Waterline, a 74 storey mixed use tower that is set to become the tallest building in the state. The project is targeting LEED gold certification, one of the highest standards for building efficiencies. Sustainability was a key design driver from the outset. GF Building Flow Solutions delivered a comprehensive system made in The U. S. For The U. S, including radiant heating and cooling using PEX piping, a hybrid domestic water supply systems combining PEX and CPVC and our open door kitting services to ensure efficient installation with minimal waste. This project showcases how integrated flow solutions can help customers achieve both environmental goals and construction efficiency. We are also proud that this work was recognized by the Plastic Pipe Institute's 2024 Project of the Year award, a testament to the strength of our technology and our collaboration with trusted partners. GF Casting Solutions, Slide 13. GF Casting Solutions recorded sales of CHF388 million, a year on year decline of 16%, reflecting the ongoing challenging market environment. The result was mostly driven by the continued weakness in Europe's premium automotive segment. Demand in Aerospace and Industrial Turbines remained solid with growth of 4%. The lower volumes in the Automotive business weighed on the results and led to a decline in the division's EBIT margin to 4.9%, which is relatively robust given the harsh business environment. Construction of our new die casting plant in Augusta, U. S. Remains on track and the installation of initial equipment has started. However, the divestment process for GF Casting Solutions is well advanced. With this, I will now hand over to our CFO, Matt Jorgensen, who will provide a detailed financial review. Thank you, Andy, and good morning also from my side. Slide 15 shows the orders from third parties, meaning that we've eliminated intercompany orders, particularly between GF Industry and Infrastructure Solutions and GF Building Flow Solutions. I will use the abbreviations for the rest of my presentation. For GF Corporation overall, orders decreased by an organic 0.2% to CHF 2,300,000,000.0, Whereas I and I Flow Solutions performed very well, driven by strong momentum in The Nordics, The U. S, Middle East as well as ASEAN, the BFS division was overall flat. Casting Solutions was impacted by missing tools, invoicing, many end of production cases and delays in planned ramp ups with both European and Chinese OEMs. Machining Solutions was negatively impacted by the uncertainty in the global markets for capsule goods. In total, Flow Solutions order intake increased organically by 4.6%, which bodes very well for the second half of the year. Slide 16 shows that sales declined organically by 3.6. Again, we see positive organic growth at Ionite Flow Solutions, driven by infrastructure business in Europe and industrial business in The U. S. And China. Billing flow solutions decreased 2.8% organically. However, this includes a substantial reduction in stock keeping units from several plant closures. Adjusting for this, the decline, as shown previously, would only have been minus 1.6%. For reasons explained earlier, sales in Casting Solutions and Machining Solutions were down organically by 14.15.9%, respectively. On the right hand side, you can see that the organic flow in Flow Solutions was flat. Slide 17. The comparable EBIT margin for the GF Corporation declined to 7.3%, driven by negative development at On the other hand, GF BFS improved the margin significantly despite the sales reduction and adverse currency effects. The decline in the margin at Ion and and Flow Solutions was caused by relatively lower semiconductor business, more infrastructure business as well as adverse foreign currency effects and tariff effects. Overall, the Flow Solutions comparable EBIT margin declined from 11.7% to 10.4. Moving to Slide 18 and the EBIT bridge. Starting on the left hand side with the first half twenty twenty four comparable EBIT of CHF222 million. The organic decline accounts for CHF40 million. The FX effect was a negative CHF 60,000,000. And the comparable EBIT, therefore, came in at CHF 164,000,000, CHF 6,000,000 lower than previous year. This gave a comparable EBIT margin of 7.3%. Moving to items affecting comparability or IACs, as we call them. As mentioned earlier, the deconsolidation of Machining Solutions led to a onetime book gain of CHF 140,000,000. The value creation program, a number of restructuring projects and various other effects resulted in one off costs of DKK 32,000,000 in the first half twenty twenty five. Adjusting by the items affecting comparability brings us to the reported EBIT of DKK $272,000,000. On Slide 19, you see the foreign currency exchange impact on our sales and the reported EBIT in the first half of twenty twenty five. The impact on sales amounted to minus DKK 64,700,000.0. And on the reported EBIT, we had a negative impact of CHF 14,400,000.0. As can be seen on the right hand side, most of the effects came from the euro, the U. S. Dollar and the Chinese yuan. Now let me guide you through the summarized income statement on Slide number 20. The column continuing operations include I and I Flow Solutions, BFS and Casting Solutions as well as the book gain from the divestment of Machining Solutions. The column discontinued operations contains Machining Solutions. As I have previously explained the development of sales and EBITS, I will only comment on the below EBIT items. If we look at the financial results for the Total Corporation, you can see that it is at previous year's level. Although the refinancing and repayment of the Yukono related bank financing led to a decrease in the interest expense of around CHF 8,000,000, we had to fully amortize one off loan fees to the same amount as we had repaid the loans before maturity. Income tax for the continuing business was high as it includes a £10,000,000 one off capital gains tax stemming from the divestment of Machining Solutions. On the next slide, we will show more details of the net profit. Net profit on Slide number 21 increased from DKK101 million in the 2024 to €165,000,000 in the first half of twenty twenty five. The main positive impact was the investment of GF Machining Solutions led to a gain of €140,000,000 at the closing of the transaction. IACs and other adjustments had a negative impact of €48,000,000 And finally, 27,000,000 relates to the lower profitability at I and I Flo Solutions, Casting Solutions and Machining Solutions. Finally, on Slide number 22, you can see that we have reduced our leverage to approximately CHF 1,600,000,000.0 with a net debt to EBITDA ratio of 2.5x. From November 2024 to May 2025, we launched four new corporate bonds totaling €1,050,000,000 all with attractive coupons ranging from 1.03% to 1.55%. These bonds and the proceeds from the divestment of GF Machining Solutions enable us to completely repay or refinance the UConn or related bank financing. The refinancing and repayments results in significant savings on interest expenses. With these final comments, I will give the word back to our CEO for the outlook for 2025. Thank you very much, Mats. Slide 24. Before we move to the outlook and Q and A, I'd like to share one more important update. GF's transformation is well underway and the strategic repositioning is, with the significant steps we have outlined during the last thirty five minutes, progressing as planned. At the same time, we are refining our internal operating model group level service functions to divisional structures. These changes will help to ensure we can better support our customers, accelerate synergies and deliver on our vision to become the global leader in Fluent Solutions. What you see here on the slide is the new leadership setup for GF's Executive Committee, assuming a pure Flow Solutions business and hence a successful divestment of GF Casting Solutions. With me as CEO, Mats as CFO and the two division presidents Thomas Hari, leading GF Industry and Infrastructure Flow Solutions and Michel Rautakus, Heading GF Spending Flow Solutions. With this new setup, we are shaping a focused and agile organization that is fully aligned with our core business areas, industry, infrastructure and buildings. Now let us move to Slide '25 and look ahead to the second half of the year. In 2025, GF continued to make substantial strategic progress, laying the groundwork for the future and strengthening the foundations for sustainable growth. While macroeconomic uncertainty and geopolitical tensions, including the ongoing U. S. Tariff discussions persist, we are well positioned to benefit from strong global trends. These include the ongoing semiconductor rebound, even if projects are currently postponed, the rising adoption of liquid cooling in the booming data center sector, increased investments in sustainable water infrastructure and the shift towards energy efficient building systems. For 2025, we confirm our guidance for our Flow Solutions businesses, bearing unforeseen adverse events and assuming an easing of geopolitical tension. We expect flat to lower single digit organic growth and a comparable EBIT margin in the range of 10.5% to 12.5%. Let me move to Slide 26. With this final slide, I'd like to conclude our presentation and extend to you a warm invitation to our Capital Markets Day, which will take place here in Scharfhausen on Tuesday, 11/04/2025. On that day, we will showcase how GF as a pure float solutions company is positioned to benefit from long term trends, from solutions for water scarcity and ensuring safe drinking water in buildings and cities, to address the growing demand for cooling and data centers, energy efficient buildings and stormwater management. A formal invitation will be sent out after the summer break. Thank you for your attention. We are now happy to take your questions. We will now begin the question and answer session. The first question comes from Johan Effert from UBS. Two to three questions. And if it's okay, I will take them one by one. The first question would be, please, on your internal thoughts about the second half. Your guidance is pretty broad for the second half. So the question is, do you expect that you can increase the absolute EBIT in Swiss francs in the second half versus the first half? And if so, what do you see are the two to three really key drivers in the sub segments? Thank you, Mr. Iffer, for your question. I think assuming a very unforeseen circumstances, we assume to have a higher absolute EBIT in the second half of the year. On the account of the strong order intake on the first half of the year, we expect the execution of multiple projects also in the industrial environment, but also a strengthening of The U. S. Infrastructure business. That are the two main pillars for the second half of the year. Second question, please. Can you maybe clarify what is the percentage of sales solution where you have to pass on the lower raw material cost? And what was the impact on organic sales in the first half? Thank very much for the question. I will pass that on to our CFO. Thank you, Mr. Ife, for the question. In terms of price effects here, our analysis shows that on the price line, we are roughly flat this year. On the raw material side, we have seen a number of decreases in the classic polyethylene PVC and PP around the world. But we have not, in all areas, been forced to pass that on. So we can say we have a stable pricing level at the moment. And can you maybe clarify what percentage of sales in Flow Solutions where you have this pass through model both ways? In the I and I, Flow Solutions is around €300,000,000 and it's much more substantial in the PFS business. It's mostly around 6,000,000, 700,000,000 on their side because they contain more pipe. That's why they have to be closer to the pricing level. And then the last question quickly. The FX impact and the tariffs. I mean FX impact was clarified. Let's see if you can price this. But the direct tariff impact on the EBIT in the first half, what was it roughly because you mentioned it as a reason for the EBIT decline? Yes. No, it remains connected with business imports into China. And there, the effects remain a mid single digit million number. It's not substantial. Thank you very much. The next question comes from Martin Fukiller from Kepler Cheuvreux. Please go ahead. Yes. Good morning, gentlemen. Thanks for taking my question. And I've got three as well, if I may, please. Just coming back to your EBIT margin guidance for Flow Solutions, which you've reiterated. We've been at 10.4% for the first half. Now just looking at the upper half of the guidance with regards to the underlying margin, that would require to get to 12.5%, that would require a 400 bps increase in the second half. How it seems a bit steep at first glance. So Mike, I guess my question is why are you sticking to your pretty broad range for the comparable EBIT margin for the Flow Solutions businesses? And related to that, also, talking about items affecting comparability, what's your guidance here for 2025 and going forward? That's my first question, and I'll come back with the second one afterwards. You, Mr. Flickico, for your question. Let me rephrase or repeat what I said to Mr. Yiffer's question. First of all, we expect with the elevated order intake of the first half the benefit and to execute on multiple projects in the industrial sector, but also with an uptick in our infrastructure project in The U. S. The guidance hasn't been changed with our annual results guidance due to the fact that we believe we will be within this range. But also, as said, we expect a stronger EBIT in absolute terms in the second half of the year. In regards to items affecting comparability, I will hand over to our CFO. Yes. Thank you, Mr. Bjorn. The question, I must say, will it's a quite challenging question because we are looking at a number of potential transactions here. We have the potential closure of the DFG. We have a potential divestment of Casting Solutions. We have potential sale of the building and deal. And and I can tell you one thing that is that from the integration work that we've done with UConor, we're looking here at a a mid single digit within Swiss francs, maybe maximum up to 10,000,000 on AICs in second half. But there may be many other substantial elements that are impacted. So it's impossible for us now and unwise to give any guidance on this, unfortunately. Okay. Then my second question is on your comments regarding data centers. I was just wondering whether you could update us on your exposure to sales exposure to data centers, I guess, it's in IFRS. Also a little bit talk about the regional spread as well as your growth and margin outlook for the business in 2025. I think it's a very good question. It's a very promising and very attractive segment where GF is embarking with new innovative solutions. And what is important, GF is currently homologating the product range with major players in this field to be able to capture also the next level in terms of cooling, which is direct liquid cooling, which goes directly on the GPUs, particularly for high performance data centers. GF will most likely triple the sales in data centers during the course of this year. But also here, we're going to have to watch out. We are starting from a rather low base at this point of time. But we believe with our solutions, which we just recently launched, for example, the so called Quick Connect valve, which is a mission critical component to hook up a data center rack with the main cooling lines, particularly for direct liquid cooling, but also with our manifold solutions. I think we are perfectly set to benefit going forward from this potentially growing market as we all know the future will take direct liquid cooling as one of quite a lion's share of the entire data centers being built, and therefore, GF is currently setting the field to benefit from that point going forward. But the impact, once again, in the year 2025 is rather a low double digit million on sales impact. Okay. And I suppose with that margin for liquid cooling, the margin is probably going to be quite attractive. So that's going to have positive mix effect. Am I right? It will have, obviously, because there is a lot of innovation products and hardly being launched. And I think as innovations normally stand out in terms of their margin quality. Okay. Great. And then my last question before I step back into the line is, if I remember correctly, at the February conference call, Mats was guiding for a book gain of 150,000,000 to €200,000,000 for GF Machining Solutions. Now EUR 140,000,000 is below the lower end of that range that was previously indicated. Why is that? Can you specify some reasons, please? The main reason is that during the course of the final negotiations of the closing work, we were assuming certain separation costs, and they have been provided for, basically. It's about mainly about IT systems. So without those provisions, we would have been within our range of EUR 150,000,000 to 200,000,000. On top of that, should also be considered that the Biel, which the Biel building, which is a machining solutions building, when we sell it, there should also be some sort of additional profit from that. The next question comes from Martin Contes from Jefferies. Please go ahead. Good morning and thanks for taking my question. Just to specify again quickly on what my predecessors asked. For the margin recovery in the second half, is it fair to assume that your sales mix in Industry and Infrastructure should shift in the sense that you will see more margin accretive microelectronic projects? And can you maybe specify here where do you get the confidence that these projects will be executed? So how visible is this for you? And then I have two follow ups, please. Thank you very much for the question. The order intake book to bill ratio, particularly in the month of June in our semiconductor segment has been at 1.2, which is a strong indication that the execution of this project in the second half will materialize. Can you be 100% certain? No, you can't. But our order book and our project pipeline gives us the confidence to guide on the second half EBIT in absolute terms growth. And therefore, as you correctly stated, bringing us a bit more of a favorable mix as well, not to be neglected, the infrastructure projects to be expedited in The U. S. That's helpful. And the next question would be on The U. S. Building Flow Solutions side. Can you give us any more color in terms of the sentiment here, exit rates maybe? So is there any confidence for the second half? Or do you think things will deteriorate from here even? I think what we will do in The U. S. Is we have a quite strong position in The U. S, and we will leverage our great opportunities also combining, as I alluded in my presentation, to combining products from our industrial range with our billing flow range, which opens up new applications in commercial buildings, particularly the riser and leveling distribution systems that we have launched made simple looking products, but substantially easing the life of the plumbers and installers in such kind of project. That gives us confidence that we can win market share with our BuildingFlow Solutions combined offering in The U. S. We also believe in converting more copper into plastics. That also was one of the reasons that we could demonstrate a resilience even so that new housing starts have been slightly down in the first half of the year. Overall, we are confident that our solutions can be further ruled out, and that is the sentiment we are approaching the second half of the year. But is there any has there been a change, a deterioration in the course of the first half? Or what's been the phasing? I think you're absolutely right. And I think that when you take builder confidence, consumer confidence, we have seen a light deterioration. So the consumer prices even have been slightly flattish in that respect for that market. But the confidence of the builders and the consumer confidence has slightly deteriorated. There's residential mortgage rates have been traveling horizontally. Now it's all I think definitely a positive tick could be given, you know, when mortgages would go down, the rates. But we are not here to speculate on the U. S. Fed policy. Yes. No, that's fair. And maybe a final question, if I may. You did mention that the DACH region, and in particular, Germany, was a bit of a highlight in building Flow Solutions. Can you give us your take on the impact on the industry of recent German stimulus announcements? And in that context, maybe remind us of the share of German sales that you have as a percentage of Flow Solutions? All right. I think, first of all, we have seen particular commercial projects or residential large scale residential projects where we could increase the share of wallet in Germany. That means, for example, we have been providing solutions for district cooling and heating or maybe heating in Germany, but also the distribution in the buildings itself. That is an issue where we're going to see quite a lot of potential. So for example, we have low temperature district heating systems supported with our solutions and also developed specific products for that one. But also, we have new products for district heating and higher temperatures, which is the so called EcoFLEX VIP product. That's all products which support us in Germany in other areas than the pure new build floor heating and hot and cold water distribution. We're also leveraging the strong positioning of Opelnoor's brand in Germany to bring in the building technology product of the legacy Piping Systems business. As we multiple times stated, this is a very traditional and conservative industry. So I think the last one point five years have been perfectly used to make this product in combination transparent to our customers to creating a certain pull effect, which means installer plumbers being appealed and being attracted by our solutions, whereas the distributor is going to have to list this product. So this will now materialize over the months and years to come. But as we always said, is in terms of unleashing the commercial synergies of this business, not a walk in the park. The German exposure in our Building Flow Solutions business is in the range of approximately on a full year scale, the German turnover is in the range of 20%. The next question comes from Walter Bahnert, Societe Generale Bank. Please go ahead. Good morning, everybody. You put in a caveat in your outlook for geopolitical conditions. What has impacted you there in the first half? Can you quantify that or give us some color on it? And what should change in the second half that you can stick to the guidance? I'm to reiterate what we said. Our good order intake growth in the Flow Solutions business will give us confidence that we can benefit from, first of all, the order book but also from our strong presence around the world. I think as Baz alluded to the tariff impact, we have seen this huge, let's interactions in Q1, Q2 affecting The U. S, China and China U. S. Trade, but also here in the European business sentiment, we hope that that will ease in the second half. As we also have seen now at least whether this is satisfying or not, there's an agreement between The U. S. And China. Let's cross fingers that we also see, let's say, a resolution of these issues we see in Europe. But we should not neglect the fact that this kind of uncertainties has affected capital expenditures or capital goods spending in major European markets. And here, we also would clearly indicate that industrial projects from chemical process industry, water treatment projects, they have been subdued in the first half of the year. And this is mainly that entire capital goods spending has been down. We have saw that also in our divested business, Machining Solutions. Mats was giving you a heads up on the figures, how they were traveling in the first six months of the year. I can tell you that Germany was a market which has been substantially down next to a few other industrial markets in Europe. So taking now into consideration what's going on in the second half, we are confident that we're going to expedite all our industrial projects, which are in the pipeline and, once again, our projects we see in The U. S. Infrastructures. Okay. Then a small question to the CFO. You had a write down on loans of DKK 60,000,000. Was that related to the costing loans? To the tune of €60,000,000 161,000,000 I'm sorry, I didn't hear you audio wise. That is correct. It was related to the legacy loans back in 2018, and it is about repayment terms as well as the likeness of repayment of these loans. We had to take another value adjustment on them. What's the balance still? We the balance is now around €60,000,000 six-zero? Six-zero for the clients in Germany. And then perhaps you can help me with the adjustments. I see an ongoing net profit of EUR 180,000,000 reported. I deduct the EUR 140,000,000 extraordinary gain at EBIT line, but I add a tax of €10,000,000 That would give me an underlying net profit of €50,000,000 What's wrong in my calculation? We have I have to apologize, I have a very bad audio. Could you please repeat the question? Yes. I adjust the €180,000,000 net profit reported for ongoing business for the disposal gain, which is €130,000,000 net of tax. I would have only €50,000,000 underlying net profit left. What's wrong with my calculation? That seems lucky, yes. As the net profit has been affected by the items affecting comparability, as alluded by Matt and shown on Slide number 21. Okay. Yes. So it's not that wrong with that calculation. So the tax is EUR 10,000,000 on the gain? Yes. Okay. Thank you very much. The next question comes from Alessandro Foletti from Octavian. Please go ahead. Yes. Good morning, everybody. Thank you for taking my questions. I also have a couple. First of all, on the two flow solution divisions, when I take the sales of the two divisions and I add them up, there are 40 millions more than what you indicate as this $1,507,000 sales for the whole Flow business. So that means you have a lot of intercompany sales there. I would like to understand what kind of products these are and from where to go where these products are going? Well, I think it's a very good observation, and thank you for the question. It's products from our multipurpose plants. For example, here in Switzerland, we have a multipurpose plant, which produces industry infrastructure and billing technology products, but ownership remains with Industry and Infrastructure division. I think this is a bit of an organizational topic. We have multipurpose production plants in The Nordics, particularly in Finland, where we produce also in one plant all sorts of infrastructure but also building products. And this is one of the topics, but I think this is a good sign and we hope to increase this combined offerings across the world because I think this is exactly one of our commercial synergies we're going to expect that we, on the one hand side, not only have the market commercial synergies but also the operational synergies by leveraging our production capabilities around the world. Right. So this will continue to stay there, I guess, then in the future as well? Yes. Okay. And then on the margin, maybe we have discussed about the outlook, but maybe you can give a little bit more information and color on why it was down in infrastructure and industry and it was up in building flow. Right. So first of all, our businesses in infrastructure have been globally up. We have a strong momentum across Europe, as we have said. The industry business has been subdued. This is on the account of industrial projects, mainly on micro E as we also have illustrated that one on our slide, which was down minus 16%, minus 14% organically. But also chemical process industries, water treatment and so on and so forth. So that has been obviously created less of a favorable margin product mix and that was weighing on our overall EBIT margin negatively in the first half of the year. I'm going to reiterate why we are confident. We have orders on hand and we had an order intake, particularly in the semiconductor industry in June of 1.2 book to bill ratio, which gives us the confidence to expedite these orders in the months to come. But also, in this case, in infrastructures in The U. S, giving you a bit more there. We are here there in the business from main to major, which means is the connection from the main pipelines in the road now to the houses, we have here quite a substantial uptick on orders. And so therefore, we are confident that the second half of the year can materialize on this effect. Okay. I understand the mix, but was there also some operating leverage there? No. It is actually, as Mr. Mueller said, it's a product mix. Semiconductor, which is a profitable business areas, minus 16% is substantial. We have FX effects in there of EUR 5,600,000.0, as shown on Slide 19. And also previously reported, Mr. Foletti, we talked about some negative impacts from the tariff, maybe EUR 4,000,000 to 5,000,000 on that. That's the reason why we have a reduction in the margin. All right. And maybe on Building this was slightly up. What drove that? BuildingFlow Solutions was leveraging their operational streamlining over the last couple of quarters. I think we have given you a heads up that we have streamlined two facilities, one in Italy and one in Turkey. That obviously started to reduce the cost base and the first fleets could be bought in the Q2 of twenty twenty five. So that is definitely one of the positive effects, but we could also slightly favorably change the mix. So we have more control whilst being sold across Europe in the first half, as I said, by leveraging the strong channels of the legacy Equinor partners. All right. Thank you very much. The next question comes from Raimo Rosenau from Helvetige Bank. Please go ahead. Yes. Thank you. Good morning. On the planned disposal of Casting Solutions, of which you said that it was well on track, could the current negative earnings momentum have any impact whatsoever on the planned disposal? Or are you still well on track to achieve the price you had in mind, let's say, already nine months ago? And if so, do you expect a deal to be signed this year? I think I'll start with your last question. We expect to strike a deal in the year 2025. We are well advanced in our negotiations. I think in terms of enterprise value expectations, I have to say that hasn't changed a lot since the visibility of this market segment is quite substantially transparent over the last nine to twelve months. So there's the business is not accelerating now being hit. I think the European supply base news are flushing in since the last twelve months, so there hasn't been any change in expectations over the last nine months. Okay. So what you're saying is that the current earnings development was foreseeable already when the negotiation started. So the whole pricing is based on the figures which we see now from the start? More or less, that is I think I'll give a grain of salt on that kind of statement. Obviously, I think multiples are a topic which you're to negotiate and underlying normalized EBITDAs are a topic. So I think what you're currently going to see, anything needs to be normalized. So therefore, I think, yes, more or less, we are traveling within the benefit. The next question comes from Christian Ops from Wader Bank. Please go ahead. Yes, good morning and thank you. First of all, free cash flow before M and A was minus 57,000,000, always weaker in the first half, as I know. But what do you expect in the second half? I assume it will be positive, but can you give us a guidance how much you can achieve in the second half? This is the first question, and I'll take my questions one by one. Thank you. All right, Mr. Oakes. Thank you very much for the question. And as you rightly stated, the free cash flow was slightly before acquisitions was slightly below the previous year, but it still travels in the area of our normal development in the first half. For the Flow Solutions business, overall, for the entire year, we should be able to come in the area of around DKK 200,000,000 for free cash flow before acquisitions. So positive DKK $250,000,000 approximately in the second half? DKK 3,000,000 for this year. Yes. Then Casting Solutions, you said that you are well advanced in any kind of negotiations. Does it include a complete divestment of casting or in parts? We will disclose the details of the transaction that we have signed potentially. Sorry, I didn't get the answer really. The answer was that we will give details to the transaction when we will have signed the deal. Okay. So and you cannot say or give an indication complete or in part? It can be both. It can be both. But the one thing is important, the auto business will always remain as one part. So there'll be no breakup of the auto business. Okay. Yes. Then concerning The U. S, do you have any difficulties to increase prices to counterbalance any kind of FX changes going forward? That is a very valid and good question. I think the innovation and our market potential with our Industrial Solutions allows us to more or less compensate most of the tariff effects. This is mainly driven to that this is a very unique system, which addresses mission critical ultra clean water applications. But besides that, it's important to note that more than 90% of our sales in The U. S. Being produced in The U. S. And therefore, not affected by tariffs. Yes. I didn't mention the tariffs. I alluded to the FX changes or the strong Swiss francs against the U. S. Dollar and everything you are losing in translation towards Swiss francs. The translation is most likely a different topic. Transaction is something which we can also leverage. Yes. Typically, you'll see that companies that are doing business in a third party currency but would be buying raw materials in U. S. Dollars, most of these markets, for instance, the Turkish market, partly also the Chinese market, there, it is normal that all competitors buy in a certain currency, and therefore, the entire industry is, let's say, willing to flow with the exchange rates. Okay. And last but not least, personnel costs. I haven't found something in the half year report concerning personnel costs. What do you expect going forward when it comes to personnel cost development? Almost in line with sales? Or do you have with all your measures you are taking internally, are you able to maybe grow on the personnel cost side below the expected top line growth? Our expectations are that we will keep the personnel cost more or less flat or slight development up there, but we expect an improved personnel cost ratio in the second half. That's mainly top line driven. Okay. But in line with the top line, is that right? No, no. We will in the second half, we have these projects. We have a very good order intake, and the deliveries are starting in the second half. So we expect that from a cost ratio point of view, we'll have an improvement in personnel cost ratio in the second half. Then going into 2026, could be a little bit forward? So the idea is to keep it flat? Depends really on the business development. We now have a follow-up question from Duer Ifert from UBS. Just two quick follow-up questions. The first one is, I mean, M and A is a key part of your strategy. How do you see the pipeline right now in terms of priority? Is it going towards metal now to tackle new end markets? Just to see also how the pipeline is developing and if there good targets available also for the near term. Maybe the first question, if I may. Thank you very much for the question. I think it's a very valid one. I think we have not excluded any of specific materials when it comes to Flow Solutions as soon as we can as GF add value on our journey. I think our potential M and A pipeline remains healthy. Nevertheless, let us close now with the DAG and unleash the potential of this great company where we're going to believe we can really make a difference when it comes to urban infrastructure solutions, being one of the only provider of comprehensive solutions. So let us first, I wouldn't say digest, but let us integrate VAG now first and make the best out of this acquisition. But once again, the funnel remains healthy, but we are not, at this point of time, ready for the next acquisition, let's be honest. And the second question, coming back on pricing, please. Do you expect you can price the negative FX transaction impact you have in the second half? And also, if I may double click on what I was asking at the beginning, what was roughly the organic sales growth impact from passing through the lower raw material costs? I understand total pricing was flattish, but there were price increases maybe in other areas. But the price, yes, concessions you had to give, what was roughly the impact? Is it 23%? Or was it 5%? Just to get a rough idea, please. It was definitely for certain product areas in regions, it really depends on the region at the moment. There were price reductions from 5% and even higher on certain product categories. That typically in the industry will follow the raw material development. But overall, at I and I have closed solutions, we are still a premium provider. We have been able to pass on several effects on the currency side for many, many years. We still manufacture in Switzerland, and our customers have always been willing to buy, for Swiss made products, and they know what that incurs. That incurs that you have, to to pay for the Swiss franc, basically. So we still have a customer base that is premium oriented, and we have traditionally in the past been able to, over the time, pass on these negative developments. Ladies and gentlemen, that was the last question. I would now like to turn the conference over to Andreas Muller for any closing remarks. Thank you very much. We would like to thank you for the interest in our company, and looking forward to meet you in person at our Capital Market Days in November. Thank you very much. Ladies and gentlemen, the conference is now over. 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