Ladies and gentlemen, welcome to the VAT half year 2026 results conference call and live webcast. I am Matilde, the conference 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 a Q&A session. You can register for questions at any time by pressing star and one on your telephone. Webcast viewers may submit their questions in writing via the relevant field. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Urs Gantner, CEO. Thank you. Ladies and gentlemen, good morning, and thank you for joining today's webcast on our second quarter and first half 2026 results. Apart from this, I am delighted to share an important milestone in VAT's long-term growth journey, our planned acquisition of Atonarp. Joining me today is our CFO, Fabian Chiozza, and members of our investor relations team. After Fabian's and my remarks, we will have a moderated Q&A session to answer your questions. The first thing we want to cover today are the H1 results. Semiconductor markets are in a unique situation. There is a clear supply and demand imbalance. We will discuss the Q2 record, CHF 500 million order flow, and the successful start to our ramp-up to support this demand. The second thing we want to share with you is an acquisition. Our press release this morning might have come as a bit of a surprise. We have been talking in the past years that we are always looking for technologies that excite us. With the signing of the SPA, I am delighted to share that we are bringing Atonarp's breakthrough molecular sensing technology into the VAT family. Together, we will create a powerful integrated offering that enables our customers to generate new value and opens exciting growth opportunities for the future. Let's start with the highlights in the first half of 2026. Next slide, please. It is impossible to talk about our business without mentioning AI and the massive investments in data centers. To be precise, however, our products are not used inside the data centers themselves. Rather, we benefit from the industry's need to expand semiconductor manufacturing capacity to produce the advanced chip that power them. The key driver is the growing imbalance between demand for leading-edge semiconductors and the industry's ability to supply them. Advanced AI chips require the latest generation of semiconductor manufacturing equipment operating in the most demanding vacuum environments. Yet existing fab capacity is insufficient to meet this demand. As a result, more than 140 semiconductor fabs are currently being built or expanded and will be equipped over the coming years with advanced etch, deposition, and EUV tools. These chip manufacturing tools incorporate VAT valves and adjacent technologies, creating not only significant near-term demand in VAT products, but also a growing installed base that will generate service opportunities for many years to come. As a result, we continue to see very strong demand for our products in the second quarter, leading to a record order intake of more than CHF 500 million. First-half orders increased 75% year-over-year, reflecting the industry's confidence that this growth cycle is more than a short-term AI-driven surge. In the first quarter call, we discussed how we were ramping capacity to meet customer demand and highlighted our target of increasing output by 20%-30% per quarter. In Q2, we exceeded that commitment, achieving a 32% increase in output and keeping us firmly on track to reach a quarterly factory output run rate of more than CHF 450 million by year-end. To support this ramp, we focused on two key areas, people and supply chain. Over the past six months, we have added more than 700 employees across Malaysia, Switzerland, and Romania. At the same time, we invested in strengthening the resilience and security of our supply chain to ensure we can reliably support our customers' growth plans. While executing this rapid ramp-up, we have also remained focused on the future. Moore's Law continues to be a fundamental driver of growth in our industry, and we are actively preparing for the next generation of semiconductor manufacturing equipment. Our innovation efforts are delivering results with 60 specification wins secured in the first six months of the year. These specification wins demonstrate how we are extending our technology leadership within our core markets. At the same time, we are investing beyond our traditional boundaries to create new avenues for growth and deepen the value we deliver to customers. The acquisition of Atonarp marks an exciting step in this direction. It allows us to look beyond the current growth cycle and broaden our value proposition to customers. By adding advanced molecular sensing and analytics capabilities to our vacuum expertise, we are laying the foundation for integrated system solutions that enhance process control, improve productivity, and create new sources of value for our customers. Next slide, please. Turning to slide six, we can see an overview of the performance of our business and market segments. Valves, our largest segment, accounts for about 79% of our sales, which are down from 84% a year ago. Global service has shown relative growth to 21% amid the overall high utilization rate in the fabs. With all the activity in the market, 81% of VAT sales were from semiconductor customers. Geographically in line with the location of fab build-outs, we now have 73% of our products and services being delivered to Asia. Our direct China business accounted for about 28%, down from around 35% a year earlier. As anticipated, China sales as percentage of total sales declined as rest of world sales accelerated. Next slide. If you have met me over the past few months, you may have heard me compare our ramp-up to an idle diesel engine starting up. A lot of noise, a lot of smoke, but not yet operating at full speed. With our Q2 performance, I am pleased to say that the engine is now running smoothly. In the first half of the year, we welcomed more than 700 new colleagues to VAT. Consistent with our flexible operating model, the majority of these additions were temporary employees supporting our production ramp. Around 85% of the new hires joined machining, assembly, vulcanization, and other manufacturing-related functions. Approximately half of these employees were hired in Malaysia, where we continue to expand capacity close to our customers. The second major focus area was our supply chain. Our teams worked closely with suppliers to secure the materials and components needed to support the ramp. This included targeted inventory build-up, both internally and at key suppliers, as well as selective multi-sourcing initiatives to reduce risk and enhance flexibility. Next slide. Despite our intense focus on executing the current ramp, we remain equally committed to investing in the next phase of VAT's growth. We will discuss Atonarp, which we believe will become an important new growth builder for the company, in more detail following the financial review. At the same time, innovation within our core business remains central to our strategy. It is the foundation of our long-term growth, strengthens our partnership with customers, and enables the next generation of semiconductor manufacturing technologies. In the first half of the year, we invested approximately 7% of sales in R&D. Across the organization, more than 130 development projects are currently underway, creating a robust pipeline of products and technologies that will support future growth. Specification wins remain one of the most reliable leading indicators of our future business. We delivered another strong performance in the first six months, securing 60 specification wins. This success demonstrate that our customers continue to rely on VAT as a key innovation partner. The industry's technology roadmap remains highly compelling. While two nanometer production is now being rolled out, development efforts are already advancing towards one nanometer class technologies, including CFET-based architectures. This highlights an important point. The demand environment we are experienced today is not a one-time event, but a part of a long-term technology cycle. The path forward is clearly defined, and VAT is well-positioned to support our customers through each technology node and capture the opportunities that come with it. This concludes my initial remarks for the H1 2026 review. I would now like to hand over to Fabian for a more detailed look at our financials. Thanks, Urs. A warm welcome to everyone on the line. Let me take you through the truly remarkable order momentum we are seeing in H1 2026. On this slide, you see the order development of the second quarter and half year 2026. Very clearly, the order patterns reflect the above-mentioned demand from our customers from the fabs for new manufacturing equipment. This is, as far as we can tell, based on configurations arising from the demand for advanced DRAM and logic chips. With capacity for chip manufacturing fully booked into 2027, the buildup of new fabs, including the latest chipmaking tools from our customers, are the main source of our growth in the quarters to come. Reported Q2 orders were up 40% sequentially. We hit the record CHF 500 million of orders. Year-on-year, the order intake even more than doubled and grew by 102%. When we look at the order book, it increased by 50% since last reporting and was over 120% versus last year. While we are increasing factory output constantly, two-thirds of the order book currently will convert into sales in the next three to four months. On slide 10, I want to put the current demand momentum in historical context. Looking back, we would have seen the last peak in orders in Q4 2021 and the trough in Q1 2023. In Q4 2021, at the last peak, the order intake was CHF 434 million. We have surpassed that number by a good margin. The record CHF 500 million order intake is now nearly three times higher than the trough quarterly intake of CHF 134 million in 2023. The book-to-bill ratio rose again in Q2 versus Q1 to 1.7 x on the back of sequential order growth outpacing sequential sales growth. With regards to the business units driving this momentum, it is no surprise that both semiconductor OEM valve sales for greenfield investments, as well as the global service business, are driving the robust growth, with semiconductor new valve sales increasing by 134% year- over- year. Also, Advanced Industrials is showing orders up 36% year- over- year, which includes demand from scientific applications, industrial applications, and power-related growth. Moving on to slide 11. It's not only the OEM business that is contributing to growth. As we can see, also adjacencies and global service are contributing meaningfully to the H1 results. Adjacencies are starting to slightly accelerate with growth at 5%. As mentioned previously, this is in line with expectations. In both gas inlet valves and motion components, we are seeing solid double-digit growth in products. In our advanced modules, order growth is still a bit sluggish as the advanced tools that we have been spec'd in are starting to be deployed in volume with the fabs. We can expect more growth to come through there. In global service, growth was seen across all product groups as semi spending picked up. Consumables saw solid growth as high utilization drove demand for spare gates. Fabs were minimizing downtime, resulting in slow growth in repairs and for retrofitting or upgrading activity. Finally, as a reminder, the potential of global service is not fully visible yet, as the growth we are seeing in OEM valves will really only start converting into service sales 12- 24 months from now. Let's move to slide 12. Let's look at our profitability, starting with gross profit and the gross profit margin. For those of you who I met in the past weeks, you will remember that I have mentioned there are a number of effects that will impact our margin, making it difficult to predict H1 numbers. Overall, our gross profit for the first six months declined 7% year- on- year, which is slightly less than the reported 8% year- on- year decline in H1 sales. The gross profit margin, however, went to 66.6% compared to 65.5% last year. You will remember our mention of net working capital reductions last year impacting our margin, which reversed again this year. Further tailwinds to the gross margin came from our continuous improvement programs. As headwinds, we experienced mixed effects in combination with unfavorable FX, especially from U.S. dollar, Japanese yen, and Korean won, impacting our net sales. Let's move to slide 13. As mentioned to you in our meetings in the past weeks, we expected EBITDA margins to reflect the stage of the ramp we are currently in. We achieved 29% in H1 2026 compared to 29.6% last year. The main reason that we are below our target band currently is the frontloading of the ramp costs, which is personal expenses and other ramp-related expenses in the first half of this year. Combining this with the lower sales, we see lower cost absorption in H1, despite all our efficiency and cost-saving initiatives. As we have proven in prior years, H2 can show a different profile, and given we are expecting further sales growth, operating leverage will materialize in H2 this year. Let's move on to slide number 14, please. Taking a step back and reviewing H1, we were quite busy at VAT this year. We transitioned our organization from ramp-ready into ramp mode, adding more than 700 colleagues, especially in the production sites Switzerland, Malaysia, and Romania. We worked with our suppliers to have them bring their capacity online to support our manufacturing. We also have been continuously optimizing our setup and equipment across our sites. While adding 22% new colleagues and increasing our sales by more than 30% quarter-over-quarter, we have maintained a margin in line with prior years. We have the same proven recipe that applies here. Our ability to drive efficiency gains from our Darwin program. This capacity expansion is not without costs. We are mitigating the impact of any cost inflation where we can. For us, these are not expenses, but investments in our ability to deliver profitability and free cash flow as the operating leverage materializes. In H1, we have been preparing the acquisition of Atonarp, an important future driver of growth for VAT in the future. We are excited about bringing in this additional growth pillar to the VAT Group, and that we have been able to secure an attractive financing package for this asset. For the second half, I foresee the following. As mentioned just prior, the expenses in H1 are investments for our ability to deliver profitability in H2, and I'm confident that we will achieve the target I mentioned in the full year conference call of being in the upper half of the lower half of our guidance band. This requires continued discipline and monitoring, and I'm working closely with our operations to understand their needs around capacity, the output they can achieve, and cash. This is a truly unique ramp environment we are in, and one that is likely to persist. As they say, it's not a sprint, it's a marathon. We have to pace ourselves. The wild card is the geopolitical macroeconomic environment, which remains unpredictable and volatile. Not only does this impact our supply chain, but also on our sales and foreign currencies. We are always thinking about creating additional resilience against the FX impact. For example, we added the most staff in Malaysia in H1, growing our team there by nearly 40%. The unforeseen effect of geopolitical developments has been commodity prices, which have been impacted by the global uncertainty and which we are also monitoring closely from our side. That's it from me. I'm looking forward to a further exchange with you in the Q&A. In the meantime, Urs will take you through the strategic rationale of this exciting acquisition of Atonarp. Yeah. Thanks, Fabian. Let's talk about this new acquisition and Atonarp. I am truly excited about this company, and even more about their people and the technology. Let me first remind you on the strong results we have delivered over the past years, increasing our market share, expanding our share of wallet, and driving sustained revenue growth. Our ambition through 2029 is clear. We want to grow our core valve business by further increasing our share on wafer fab equipment tools while benefiting from the rising number of process steps and increasing vacuum intensity. We want to expand our share of wallet through our adjacent components and subsystems. Until now, we have been cautious when discussing our growth opportunities beyond 2030. Today, we can be more specific. As semiconductor manufacturing becomes increasingly complex, success will depend not only on enabling advanced vacuum environments, but also on providing the technologies that allow customers to precisely monitor and control their processes in real-time. Feed-forward pressure control and gas flow control are areas where we already have a strong presence. As the industry moves to two nanometer, one nanometer, and beyond, our customers require even deeper process insight and control at the molecular level. That is the strategic rationale behind Atonarp. The acquisition expands VAT's technology scope from vacuum solution into advanced process sensing and analytics. It creates a new avenue for growth beyond our current portfolio, and it will enable customer to solve some of the most critical challenges in next-generation semiconductor manufacturing. The next slide. Atonarp was founded in 2009 to develop a new generation of miniaturized mass spectrometry. The key advantage of the system is its ability to measure gas composition in real-time directly within the process environment, which means integrated in the chamber. This gives customers visibility into what is happening during critical process steps and enables them to make proactive adjustments to process recipes, improving both yield and process stability. As the industry moves to sub-two nanometer architectures, this capability becomes increasingly important. Many of the new manufacturing steps required for these advanced nodes cannot be effectively monitored with existing technologies. With the Aston product family, customers will be able to transition from conventional time-based process control to adaptive chemistry-based control. They can make decision based on actual molecular conditions and process outcomes, enabling higher precision, greater consistency, and improved manufacturing performance. Through this acquisition, we are gaining a differentiated technology platform protected by a strong portfolio of patents and deep R&D expertise. It extends VAT's capability beyond vacuum solutions into advanced process sensing and control. Next slide, please. Our customers will benefit from the combination of the Aston sensor family with VAT's existing technology portfolio, as illustrated on this slide. In green, you see our established OEM valve solutions, which continue to evolve and support the most advanced semiconductor manufacturing processes. In blue, you see our adjacencies, where demand is now accelerating with the deployment of the latest generation of semiconductor tools. In purple, Aston adds a critical new capability, real-time process sensing, effectively providing the eyes into processes that today remain largely invisible. Next slide, please. Based on this, we believe this transaction represents a major step forward for both VAT and Atonarp, with each company bringing highly complementary strengths to the partnership. We gain access to a unique technology platform, what would have been difficult and time-consuming to develop internally, and we can prepare the next chapter of the VAT growth story. This is about positioning VAT beyond the next three years. We have identified a critical future need in semiconductor manufacturing and are investing in technology that will help our customers continue pushing miniaturization towards its physical limits. For Atonarp, VAT is the ideal partner to accelerate commercialization. The first Aston systems are already deployed, and VAT's deep customer relationship, strong market position, and proven specification win track record provide a powerful platform to scale adoption across the semiconductor industry. VAT also brings world-class industrialization and manufacturing capabilities. While Atonarp has developed a breakthrough technology, VAT's global manufacturing expertise across Switzerland, Romania, and Malaysia provide the scale, quality, and operational excellence needed to support broader market adoption. In short, Atonarp brings unique technology, and VAT brings customer access, manufacturing expertise, and industrial scale to unlock its full potential. Together, we are creating a stronger platform for long-term growth. Next slide, please. Let me close this section with a brief note and overview on the transaction terms. We are excited to move forward, and we will provide updates as we progress toward closing in the coming months. Given the nature of the transaction, we do not anticipate any significant regulatory hurdles and expect a straightforward approval process. Finally, I would like you to take away three key messages from this transaction. First, Atonarp is a continuation of the strategy we presented at our 2025 Capital Markets Day. We will continue to drive organic growth through our core valve and adjacency portfolio. Second, we recognize that not every critical technology can or should be developed internally. Atonarp's mass spectrometry capabilities are exactly the type of differentiated innovation that will become increasingly important as semiconductor manufacturing advances beyond the two nanometer node. This acquisition brings us technology and expertise that would be difficult and time-consuming to build ourselves. Third, the success of this transaction should not be measured by near-term accretion, dilution, or cost synergies. This is fundamentally a technology and capabilities acquisition. Ultimately, the true measure of success will be our ability to translate these new capabilities into future specification wins. The outlook section. The best proxy to start the outlook section is always the estimates for wafer fab equipment spending, which in both 2026 and 2027 have continued to move higher. This is confirmed by our customers, which are providing increasingly positive signals regarding demand visibility over the coming quarters. Current market consensus points to a wafer fab equipment market of approximately $145 billion in 2026. This growth is being driven by the massive investments hyperscalers are making in data centers, creating extraordinary demand for high-performance chips. The challenge remains that semiconductor manufacturing capacity has not kept pace with demand. To address this gap, more than 140 fabs are currently being built or equipped through the end of the decade. At the same time, the industry is progressing rapidly along its technology roadmap. While the first gate-all-around architectures are now entering production, the next node transition, including 1.6 nm and 1.4 nm technologies, are already on the horizon. These trends reinforce our conviction that the growth story we have been discussing for several years is now unfolding. Demand is strong, capacity is being added at high pace, and the pace of semiconductor innovation remains as compelling as ever. Slide, please. The latest synthesis surveys indicate that approximately 140 semiconductor fabs are currently under construction or being equipped worldwide. Current wafer fab equipment forecasts already highlight a credible path towards a $200 billion annual wafer fab equipment market that many industry observers anticipate for 2028 and beyond. Assuming an advanced logic or memory fab requires approximately $10 billion- $20 billion of equipment investment, the fabs currently planned represent a cumulative wafer fab equipment opportunity that exceeds $1 trillion over the next few years. In addition, we expect new semiconductor manufacturers and chip initiatives to enter the market. These new entrants will require substantial manufacturing infrastructure, creating an additional source of demand beyond the expansion plans of today's leading chip makers. These factors give us confidence that the current investment cycle is supported by strong structural drivers, and that the long-term growth outlook remains highly attractive. Coming to the last one, which is outlook. Based on the positive market backdrop and our strong operation and execution, we remain firmly on track to achieve our 2026 targets and to reach our planned quarterly factory output run rate of more than CHF 450 million by year-end. Growth will continue to be driven primarily by our semiconductor OEM valves business, supported by strong contributions from our global service segment, benefiting from high fab utilization rates as well as from semiconductor-related markets within ADV, including power semiconductors and inspection. As a result, we expect 2026 to be another record year for orders, sales, and free cash flow, with higher EBITDA margin, and net income compared to 2025. For the third quarter of 2026, we expect sales in the range of CHF 355 million- CHF 385 million. Looking further ahead, the continued increase in wafer fab equipment forecasts has strengthened our confidence in the market outlook. As a result, we are currently reviewing our 2027 targets. While all indications point to 2027 being another year of growth for VAT, we do not yet have sufficient visibility into customer ordering patterns to quantify the magnitude of that growth with the precision we require. We will provide an update as soon as visibility improves, and we can do so with confidence. With that, moderator, please open the line for the questions. The first question comes from the line of Meihan Yang from Goldman Sachs. Please go ahead. Hi. Good morning. Thank you for taking my question. I just have two questions. First of all, WFE's growth is expected to grow at 24%, according to your consensus, but your orders has been clearly outgrowing that number. Just wondering, are you seeing any double ordering pattern from your customers? The second question is, if we're looking into 2027, when are we likely to get an update, given that your lead time is still probably around three months? How would you feel comfortable about guiding your 2027? If you could help us break the bridge of second half margin. If I get it correct, is the upper half of the lower half of the full year guidance, in terms of operating leverage and FX, are you planning to do any further ramp up? Thank you very much. Well, thank you for the questions. I certainly take the first one about the outgrowing and about the Wafer Fab Equipment market. If you are in a ramp phase, the order patterns is also changing over time. The customers are more open to open their order windows as well. When it was traditional, let's say the three to four months, it goes now more to the three to supply chain for the ramp-up and the deliveries. The same we are doing with our suppliers as well, that also we are opening up the order window that they can bring in the material in time. The second question was about the 2027. As mentioned, well, I think all the vectors are very positive. We have very good feedbacks from our customers, but it's still quite challenging to say how this will turn then into the sales in 2027. For sure, everything points into a growth year, similar magnitude we have this year. If you see now where we want to go with the run rate of CHF 450 quarterly run rate, then you can calculate roughly where this could end up in the 2027. Then let me just maybe complement on your third question on the margin expectation for the second semester. With our current consensus sitting at around CHF 1.3 billion, we're looking at a sales increase of more than 50%. With the more than 700 people that we already added into the system, I do not expect any significant additions. Somewhere between 10%-15%, maybe, in the production environment. Based on that, the fixed cost absorption will significantly increase, and then also the operational leverage overall will kick in. I do expect that the negative effects, such as inflation, for instance, will stay around the level where we have seen it in H1. Then also our continuous improvement program usually has a steeper contribution in the second half. Bottom line, whereas we will end up in the upper half of the lower half for the full year EBITDA, I would expect that EBITDA for the second semester will be in the upper half of the upper half of our margin band. Got it. Thank you very much. The next question comes from the line of Oliver Wong from Bank of America. Please go ahead. Hi, guys. Good morning. Thank you for taking my question. Talking about potential price increases. Is this something that you may potentially be seeing in terms of order activity as in customers potentially pre-buying a bit ahead of potential price increases? Thanks for that question. No. At the moment, the demand is here. It's not driven by the threat of price increases at all. We simply see the demand of wafer fab coming this year, and everybody wants to secure the supply, and that's why they open their order windows. Got it. Thank you. My second question is, on the CHF 450 million run rate, I guess we can presume that that will be the capacity run rate for the entirety of Q4, then extrapolating that into next year, let's say CHF 1.8 billion for the year. That's kind of your capacity. I know it's early, but what would you expect demand to be in relation to that for next year? What was the last part of the question? The CHF 450 million, yeah. It's kind of our best estimate, what we will need going into 2027. Then, of course, we will see later this year how this will evolve into 2027. Yeah. What do you expect? I guess we have a good sense of capacity. Where would you expect demand to be in relation to that capacity number for next year? Well, the run rate, I think it will be roughly at that level, and this is the factory output. Normally, we always can add some non-factory output sales as well on top of that. If the Wafer Fab Equipment numbers will certainly evolve as forecasted at the moment, I think I'm sure we need this CHF 450 million run rate. Okay. Thank you very much. We now have a question from the line of Sebastian Kuenne from RBC Capital Markets. Please go ahead. Yeah. Thank you for taking my questions. I want to again ask on the. It is still not quite clear whether you plan to increase your capacity also in 2027. You say you end the year at CHF 450 million run rate. You say you expect more growth next year. From base perspective, would you say you will add more people in production in 2027, so we end up at, I don't know, CHF 500 million, CHF 550 million by the end of next year in terms of output? It is not quite clear yet whether you see incremental ramps in next year. Maybe you can clarify that first. Thank you. Yeah. Certainly at the moment, if you look more in the midterm, like in the 2028 +, the industry is at the moment still pointing to growth. I think we all know that's quite far out. We certainly want to make sure that we have enough capacity to manage if this is materializing. Yeah, you can expect if the positive momentum remains, and what we hear from our customers, that they also want to double their companies by 2028 and beyond that. We have to add capacity. I think there is CHF 450 million by end of the year. This is what is needed now and for the start of 2027. Today I would say that's not the end. Of course, we are watching out carefully how the market really evolves. Maybe just to complement that, you need to remember that when we talk about CHF 450 million, that's our factory output. We have between 10%-15% of sales that's non-factory output that comes on top of that. Understood. The other question is again on pricing. You say for this year, pricing is not the issue. At the same time, as we know, you're the quasi monopolist in the market. You want to deliver to your core customers, the big OEMs. They are your priority. If now a Chinese smaller player comes along and says, "I need 150 valves by the end of next month," or maybe six months out now, what are you saying to them? Are you saying, "Well, we can definitely deliver, and let's not talk about price?" Do you say, "My priority is the big OEMs. This is the long-term relationship I have. If you want to squeeze in into my production schedule, we have to talk price." Do you see price opportunities now in the next six months or 12 months, is the key question. Thank you. Now we're talking out of the puzzle, right? Certainly. We have with all these large customers in semiconductor, we have long-term relationships with the Western and also with the Chinese. Everybody is ramping. We also have commitments to them. On pricing, we remain committed always on value-based pricing as well, long-term relationships. A ramp is always a hectic situation. You always have to balance. What we always say is, most important is that the supply chain should not create any line downs. Though they don't have to have a lot of products on stock. Of course, you want to have that, but it's not necessary. That's why you're always balancing close collaboration, alignment with customers. That's very intense in the last weeks and also will be very intense going forward for the rest of the years. That's how we manage the business. It's less about putting money on the table, then you get a preference. It's the demand. Cool. Yeah. Very cool. Thanks, Sebastian. The next question comes from the line of Joern Iffert from UBS. Please go ahead. Hello. Thanks for taking my questions. I would have two, then a follow-up if I'm allowed. The first one is coming back on your capacity planning. What would be with the current infrastructure set up you have in the three sites, what is the total revenue output you can handle, when you would, for example, also institute night shifts and weekend work? What is really the absolute max you can squeeze it out? The question is directing to, if semi-wafer equipment CapEx is really approaching the CHF 300 billion by 2029 or 2030, how fast could you also ramp a new production site? Are you preparing for this already? This would be the first question, please. The second question, I know you don't have a crystal ball, but what you saw on exit rates of order intake, in Q2, would you say this was maybe the peak in terms of order intake for the next one or two quarters, that orders are more flattening now, or do you see a decline or further increases? Just what is your best guess, would be helpful. Afterwards, I would have a quick follow-up, please. Not sure if you get that. Okay. The capacity, for today, it's for us a CHF 2.5 billion- CHF 2.6 billion we can do. Of course, the operations team always finds ways to optimize. Probably that's not the complete, the end. As you know, we can still expand in Malaysia. We have the 1A and the 1B. We have not used the land on the Phase 1C. We would have room to expand there as well. On the second one, the more the short term, yes, order intake was of course fantastic this Q2. It's a typical ramp that everybody now tries to secure. I do not expect that this growth continues, but I think the level where we are, will be around this number also for the Q3. quantified. Just when I make a little bit the math to also see the rising vacuum usage in the production steps. Let's assume FX adjusted your midpoint for the 2027 guidance was around $1.4 billion in terms of sales based on a semiconductor equipment CapEx of $125 billion. Shall we say we take this $1.4 billion and that's, for example, semiconductor equipment CapEx would grow 60% from this $125 billion towards $200 billion, for example, that we also should take the $1.4 billion to grow 60%? Is there anything wrong in this approach? It's a good model, yeah. Maybe a bit more. Maybe I don't want to speculate now on the number, but certainly the wafer fab equipment growth will help dramatically. Also which kind of equipment is going out, that should also be in our favor at the moment. We say more leading edge is going online. Yes, it's not completely wrong. Yeah. Then you're always distinguish, please, between when you do the math, I think where you're heading with your thoughts on underlying demand. Yes, Urs just confirmed that. Output for our customers. Okay. Thank you very much for this. Next question, please. We now have a question from the line of Craig Abbott from Kepler Cheuvreux. Please go ahead. Yes. Hi, good morning, all. I just wanted to focus my questions, please, on the acquisition, Atonarp. You didn't provide any financial metric, excuse me, for the business other than the acquisition price. I understand it's more about preparing for your future growth beyond 2030. I just wondered if there's any light you can shed on for our modeling purposes on like what kind of revenue contribution can we expect, what kind of margin? Secondly, do you have an M&A pipeline beyond the Atonarp acquisition? Thank you. As you pointed out correctly, it's really a technology and capability acquisition, and it's not a revenue. That we see that this technology is unique. It's not a me-too product in the market. I think that's very important. We just don't want just to add technologies that are already existing in the market. We want to differentiate, and we see an inflection point. I think we will plan a capital market day in next year and can go a little bit more in details as well. It's kind of steps. There is no sensing technology available. Basically they are like in a dark room. They are operating in a dark room. With this technology, we can add like eyes into the room that they can see what's happening. I think that's not existing in the market, and this is the exciting part of that. We don't know to date fully what is the potential, but knowing that semiconductor processes are getting more and more complicated, node size is going down to this one nanometer, the industry will need such kind and will adopt such kind of technologies. That's the underlying thinking we had for this acquisition. From a financial perspective, this deal is primarily technology and IP acquisition rather than an earnings accretive transaction in the near term. Once the product scales to high volume, as with all our adjacencies, it is at least within the margin grid, obviously with some accretive potential beyond that. Okay, thank you. My question on the pipeline beyond then, before we move to that, please, just to follow up. You say you're quite confident that the industry will adopt this technology, do you have any visibility or do they have joint R&D projects ongoing with some of your major customers? Then that second question was on the M&A pipeline beyond. Thank you. Yes, of course. There's our ongoing qualification, product development, with major customers and end users out there. Add this technology, it's not the end, of course. We will keep screening, scouting, where we could add on. Technology is, in the end, always something that is unique in the market, where we can add value to our customers. This is ongoing. Okay. Thank you very much. The next question comes from the line of Sandeep Deshpande from JP Morgan. Please go ahead. Yeah, hi. Thank you for letting me on. My question is regarding the growth you're seeing in the orders at the moment. You've been talking about the adjacencies for a while. Are you seeing growth? Is it primarily valve growth, or is the adjacency growth also now similar to the valve growth, or is it higher at this point? I have a quick follow-up as well. Yeah, thanks for that question. We are, of course, always pointing out adjacencies, and we also show that especially also in spec wins, our share of adjacencies is growing as well. Even also in the sales number, the adjacencies did grow faster than the valves. Yes, we see the momentum. As you might recall, it's highly dependent on what kind of configuration of wafer fab equipment tools or the products from our customers go into the market. Adjacencies are mainly qualified on the latest generation. Of course, also here, if you talk about two nanometer, a lot of process steps can be done also with the existing, the legacy tools. There is always then a kind of blended how this adjacency will grow. Yes, we see positive momentum in adjacencies going forward, and I expect that this will be like that also in the near future. Quickly following up on your regional exposure. You talked about China has declined as a percentage of sales, I think, 28%. How do you see that playing forward? If you look at your order book today or your backlog, is the backlog also now left China going forward, and is China going to accelerate from here? Or is it that now the growth in the next couple of, rather not just couple of quarters, but right into 2027, is going to be extra in the non-China related from here? In the first half year, yes, the number was a little bit lower in percentage because the rest of the world was kicking in again. If you just would compare the orders, then we are still at about one third or 35% orders are coming from China. It did not decline at all. China is keeping the pace very high as well. Just anticipating as well, going forward, more and more Chinese fabs built by Chinese tools. This will certainly be a growth, for the growth there will continue. It's more and more this decoupling, self-sufficiency in chip manufacturing, self-sufficiency in the wafer fab equipment tool, and this decoupling is taking place. Thank you. Next question, please. We now have a question from the line of Martin Jungfleisch from BNP Paribas. Please go ahead. Yeah. Hey, good morning. Actually, just one quick follow-up from my end. Just on margins and pricing, in terms of raw material input costs on aluminum and so on, are you expecting any hedging quarter to offset the input cost inflation? Thank you. Yeah. On the aluminum, I think when you just follow the LME that spiked as high as 3,800 in June. We've now seen a recovery to three one, three two. If you go back to the start of the year, it's just about 5% up. I think even with some of our hedges running out, we have been able to extend those, and therefore, I can just reiterate what I said before, I do not expect any further negative pressure on the margin beyond what we have already observed in the first half. Notably, though, that our Continuous Improvement Program was able not just to compensate but really to outpace the inflation, and we still achieved about 150 to 200 basis points net positive contribution to that. Then again on pricing, I wouldn't see that as a static exercise. As Urs mentioned before, we are committed to value-based pricing and are constantly reassessing whether current pricing fully reflects the value delivered by VAT. You can assume that whenever there are pockets for adjustment that we tap into them, also drive these selective adjustments. I wouldn't see why we should now just wait for another round in autumn. You always have also tendencies from the FX or other elements that are just unique to VAT, we are constantly monitoring that and also how we have sustained the gross profit margin gives you an indication that we do monitor and also adjust as we see necessity. Okay. Makes sense. Thank you very much. The next question comes from the line of Nabeel Aziz from Rothschild & Co Redburn. Please go ahead. Hey, guys. Thanks for taking my question. The first one was just on capacity. You've hired 700 people, and I think, Fabian, if I misheard you, then apologies, but you mentioned adding 10%-15% more people, about 300, 400 people in the second half of this year. Is people your major bottleneck for VAT ramping further? Because obviously you took up the guide from CHF 400 million-CHF 450 million, for the exit rates for this year. Would you say that people is really your major bottleneck moving forward? I've got a follow-up. Thanks. Yeah, thanks for your question. Let's clarify that for the benefit of everyone on the call. When I said 10%-15% more, that's based on the 700 that we already added, not on the full kind of workforce that we have. That already gives you the indication that, from a people perspective, basically have in place what we require, obviously, in these times, not so much in Switzerland, but especially in Malaysia, you also deal with attrition as the whole industry is ramping. The hires might go beyond that. If we just go by the net, the head of people, that's somewhere between 10%-15%. This said, people and assets are certainly not a constraining factor, as we have 75% of our components in the supply chain. That's also where we put most of the focus on. That's also, where we have basically since Q4 2025, plenty of people following up closely the scale-up with our suppliers. That will certainly continue to happen now as we ramp towards this runway that we predict for the end of the year. I would not call that as a constraining factor, but obviously it's always a challenge when you have this multitude of suppliers and you need to make sure that they are also capable to ramp at the same pace or even beyond what we are requiring. Okay, great. Thanks for the clarification. Then I guess the follow-up is just on your capacity utilization rates in Switzerland and in Malaysia. I know you provided those percentages last quarter. Have those changed materially Q- on- Q? Thanks. No. As we are also constantly adding utilization rates to also develop. Right now in Switzerland we have around 70% utilization and in Malaysia for the one A factory is somewhere between 80% and 85%. Great. Thank you. We now have a question from the line of Michael Foeth from Vontobel. Please go ahead. Sorry. Good morning, gentlemen. I have a question or a few questions on the acquisition because I really believe it's a major strategic milestone. I think the process monitoring market is quite vast, and my question is whether you plan to expand further in this market in the future? What sort of market size overall you have in mind, for that market? Also, you didn't give any specifics on the financials. I understand that, but, can you remind us what your capital allocation criteria are when you do such acquisitions and over what time frame that those acquisitions or those investments should create value? Thank you. Yeah, thanks for that question. You can be assured that we have some ideas, where we think that this technology will be adopted and needed. We see there is an inflection point out there in the market. As I tried to point it out, there will be new processes. There are new processes out there for the gate-all-around the CFET technologies that do not have, today, sensing technologies available. I think you can see that they're quite similarly to what we have done organically with the gas inlet valve, at that time, the ALD. This was also a project that started, meanwhile, more than seven years ago. At that time, nobody was thinking about ALD gas inlet valves will be a bottleneck in the market from the technology. There were solutions out there, but we identified a field where there will be a bottleneck and the current technology is not good enough anymore. I think that's the way we are thinking. If you see technologies we want to enter in a field or create a field and a market that we believe will add value to our customers. Of course, it's always a very close collaboration in the end with our customers, with the OEMs, but also with the chip manufacturers like big fabs who are going in this direction of the gate-all-around at the CFET. That's kind of how we see that. That's why it's not that easy to quantify a market. There are no market studies out there that this market is CHF 0.5 billion, CHF 1 billion in size. We believe that we can create this market with such a technology and a demand in the market because it adds value to the chip manufacturing. That's the road we try to go. To model and all that, it's not that easy. From a technology point and creating value in the market, it's a really exciting journey, where we want to shape and give a legacy in the end to the chip manufacturing. Michael, maybe some color around capital allocation and then how we see the value creation out of that. We estimate that we will spend about 0.5% of revenue in additional R&D in this platform that we are going to build. Currently, I do expect that this acquisition will generate meaningful bottom-line contribution by the end of the decade. As such, the capital allocation principles will also not change. The only thing that we will see is a step-up in R&D. Other than that, we're going to stay course. Great. Thank you. Thank you. I quickly have two questions we can answer from the webcast. One easy one. We don't have a crystal ball, but do you expect the book-to-bill ratio to stay above one for the remainder of the year? Yes. The answer is yes. Thank you. Urs Beck is asking about the factory output number that we have discussed, whether this is 24/7 four shifts, or what is the underlying model here? Whether we can, if it's not 24/7, if increasing it to that level is part of the output increase. Yes. We are already on such a pattern in Malaysia and in Switzerland. We'll also move there over the course of the second half. Our last one here that I take from the web is the supply chain. How this is evolving Europe versus Asia. How fast this is? I think the evidence is given by a very steep ramp that we have now accomplished in Malaysia, which was heavily supported by local independent supply chains. We always discussed that also in previous calls that this is one of our key focus areas to build independent supply chains also around the Malaysian flagship factories. As such, I'm actually pretty confident that we will continue to see them ramping up. On the other hand, we also are scaling up our new Romania factory, which also comes in handy now as we scale the company. Overall, the best cost country sourced material will further increase and will also help us to reduce the exposure of the Swiss franc going forward. Great. Thank you very much. We are already quite a bit past the hour, operator, I guess we take the two last questions from the phone. The next question comes from the line of Timothy Lee from Barclays. Please go ahead. Hi. Thanks for taking my question. I just have a follow-up on the capacity expansion. Now we have the expected run rate of CHF 450 million by the end of this year. That means an annualized output around CHF 1.8 billion. If I am not mistaken, your theoretical capacity will be around CHF 2.1 billion. That is still like a mid-teens growth compared with the annual run rate by the end of this year. Can I assume this will be like the mid-teens growth per quarter that you will be able to achieve next year, to be kind of the capacity or manufacturing output ramp-up run rate for next year? Thank you. I think it was very difficult to understand your questions here in the room. Maybe if you talk about the capacity, I think that I can summarize a few key numbers here. We always commit that we can ramp 20%-30% quarter-over-quarter, right? We have proven that in earlier ramps, and normally we have had to do that maybe two or three times in a row. This ramp now is a really completely different animal here and very positive, of course. The market is growing. We are preparing internally that we can grow the 20%-30% for a few more quarters ahead. I think that's what's the challenge we are facing. Internally, we can manage that pretty well. What with our capacities, it's a lot of optimization, productivity gains, what we can achieve. The second part, of course, is that the whole supply chain globally, and also even going down to raw materials like aluminum or elastomers and chips again, they also have to ramp up at the same pace and kind of serve this global market. Ramping up is an exciting story. It is a challenge with a lot of hurdles that the teams have to move out of the way. Okay. The last question please now. We now have a question from the line of Martin Marandon-Carlhian from Oddo BHF. Please go ahead. Did he left the call? No, I'm sorry. I was on mute. I'm sorry. Yeah. My first question was on the backlog conversion. Looking at the record backlog today, I'm trying to understand what is currently the main constraint you can face on converting demand to sale. I understood it's not about production capability. Is it more about component availability or it's more customer readiness at this stage? Well, for me, the backlog, or I call it orders on hand, that's fantastic to have. Normally I would say I want to have orders on hand for at least three to four months. Of course, if you want to go up then to a CHF 2 billion scenario, going for in the future, you have to have roughly 500 million-600 million orders on hand now. Now in a ramp, of course, maybe this is, in the beginning, a little bit higher, because you get the visibility, you get the orders, the order windows, as I mentioned, are opening up. When you reach that level, more a stable output, then it goes back to this three to four months in order backlog. Okay, understood. A very quick follow-up on Atonarp. You said, from what I understood, that sensing controlled technologies will be key drivers after 2030. I think your 2029 targets for adjacencies is up to 20% of sales. I guess my question is, do you think that after 2030 you can actually exceed that target? Well, as you mentioned, 2030, we can also say this is our horizon two story, right? What we add new technologies, new products into the market beyond the 2030. The adjacency for us means more technologies that are already close to our valves, close to what we have done in the past, like the advanced modules, motion component, the gas inlet. Stuff we developed organically. We should not mix it up at the moment, I think. Let's now work with this great team in Japan, to have the first spec wins, to adopt that to the market. Later, maybe next year, we can give more insights how we think that market and the growth with this technology will evolve. This is a typical topic then for a specific capital markets day. Okay. Very clear. Thank you very much. Okay. Thank you very much. I think with that, we would conclude today's call on the results and the acquisition of Atonarp. Our next point is the Q3 results, that will be published on the 15th of October. There again, a trading update and of course, yeah, we're looking forward to talking to you then again with exciting news about the markets, our developments, and so forth. Thank you very much for joining us today and have a good rest of the day. Ladies and gentlemen, the conference is now over. Thank you for attending today's call and thank you for participating in the conference. You may now disconnect your lines. Goodbye.