Ladies and gentlemen, welcome to the Zehnder group half year 2025 media and analyst call. I am Chandra, the call operator. I would like to remind you that all participants are in listen-only mode and the conference is being recorded. The presentations will be followed by a Q&A portion. If you would like to ask a question from the webinar, you may click the Q&A button on the left side of your screen and click the raise hand button. If you are connected via phone, please press Star followed by one on your telephone keypad. For operator assistance, please press the Operator Assistant button on the left side of your screen or Star, zero on your telephone keypad. At this time, it's my pleasure to hand over to Matthias Huenerwadel, CEO. Please go ahead, sir. Thank you very much. Welcome everybody. I do appreciate that you take the time to wait. I'm fully aware you had a busy week. It's mid provocation season and it's Friday afternoon. We will try to be brief and through the points. By brief I mean Esteria and me on our left, you see. I won't switch the slide. I will start with a quick business review for the first half Ernie. Then we'll dive deeper into the figures and finally we'll have a short outflow since you should have plenty of time for processes. Let me start with a business review at the grants. What we already saw in 2H 2024 is that several of our key markets are undergoing an increase of new building construction activities that continue in Emirates and the U.K., Netherlands, Spain, but also Canada for example, and particularly our ventilation segment, which is driven to quite some extent by the new field development, has therefore also benefited. We were able to grow 15% organically and as you know we acquired the company Siber last summer. That also helps to drive this growth externally, which was an additional 9%. Altogether the ventilation technology grew 24%. It was not just the market that supported. I think we're very happy to also say that we were able to gain some market share. Again the candidates are Holland, but also the U.K., but also Canada. Now if you look at the bottom right, we have invested in mostly with the focus on ventilation innovations and also in market coverage. I guess if you look at the figures that we were able to report in the first half, that proves right and that's what we're doing and continue to do over the first half but also for the remainder of the year and going forward just to set the pace for sustainable growth and really maintain our position as thought leaders in our particular industry. Another question that I'm sure you also have is what impact or to what external impact divided by the U.S. tariffs here? I think it's fair to say that however it was very modest and that is because we are mostly exempted from tariffs due to our local footprint. As you know, we produce mostly local for local markets. If we had also some impact, we were able either to mitigate that in the supply chain or in some cases also through price rises. If we look at the markets at cloud salary, they refer to the new built market. Probably what we also saw as a positive contributor in the ventilation business is that thermal distributors or wholesalers had a distributed inventory level towards the end of the year. I'm sure there is restocking effects in our figures; to what extent poses a little bit difficult to face, what we also have to face. Whereas in new build ventilation we had some very positive development renovations in our key markets and that is main drive for our radiator business remains anemic. Here especially maintenance, and at the same time, this used to be almost 5% of our total sales. In fact, almost 80% of our total sales a couple years ago is further in a difficult situation and hence you haven't seen any recovery there actually. So radiator is the one that is in a negative trend. Ongoing negative trends, probably magnified also through a shift from our high price design radiators towards the lower price radiated physical panels which we don't produce. That is obviously something that we will need to work from in the months going forward. Positive is, on the other hand, at least in North America we saw a recovering of the demand for our design radiators, particularly in the U.S., and that helps the results to some extent. Now just to highlight a couple of our key projects. The first one is the acquisition of the leading residential ventilation player in Spain, a company called Siber, which we did exactly a year ago. The integration is going according to plan. One of the main benefits that we want to shift out of this acquisition is really cross synergies in sales into other markets. I'm very happy that it's happening. In fact, we're ahead of plan. Italy was launched in the first half of this year. We're currently launching in other markets, all pitched as a staged approach. We're also going to do the rest of Europe throughout 2025, and actually in terms of volumes and sales these were ahead of time. Also positive is that it is a range that complements our traditional range. Zehnder has always traditionally focused on single-family homes, and if you look at the Siber range, that actually is very much towards multi-family homes. As a micro, this is the part of the new build indices that have been growing faster and hence this is a very good complementation of our portfolio. The second key initiative I would like to briefly focus on is the consolidation of our flat tubes radiator manufacturing footprint here. We announced last fall that we will close down the radiator facility in Switzerland and onboard data services in our current Gränichen point. This is also well on track. We have closed the activities, we go under anything in April and we have taken over all activities for all markets in the French manufacturing plant. However, I think that's something that I will then also show again in the outlook and effects of the validation because it happened in the second quarter, most of them fall into the second half of this year. Now if you look at this chart, I like to show it at all our conferences, you see that we're progressing in our transformation from originally a component manufacturer in the building industry to a HVAC system solution provider. You also see that meanwhile the ventilation strategies, which consist of a couple of different elements also, but not to forget between pollution filtration for commercial, but mainly also residential ventilation, is now amounting to 66% of our total sales. You also see that in 2022 it has shown a steady growth both in terms of sales in total but also in terms of proportional opportunity on total sales. There's a couple of reference projects. This one is a project loan. It shows a development for affordable homes, an extra care or nursing home. Why do I want to show that? I t is really a project grid sandal available to all the ventilation needs. What you see on the bottom right there is a commercial unit. You might remember that we acquired Caladair, the French producer and provider for live commercial units. That's the color of the unit, but that's just for the commercial areas. On top of that, we also provided all the single units up to 100 units on various apartments and rooms. Obviously, all the air distribution has cyclical costs. Things like the Hatis and likely Lightfish. We really do full one stop all the ventilation needs for the customer. Another project that I also would like to point out, I think it's another physical project. Here you see another building development in the United States for 134 new apartments. It is according to a passive house standard. Focus is very much on reduced energy consumption. This is interesting because we did not only provide ventilation air distribution. What you see on the picture is actually one of our Comfo plan Q units. That is a unit that embodies a module that is also able to transfer in cooling and heating the air. That's a product that we launched a couple years ago and it's nice to see that we see ongoing market success and growing demands also for this newer technology that we have in our product range. So much for a quick review. René, why don't you give us some more details about the figures. Thank you, Matt. Also, connect to me dramatic potential financial performance and repair. Six months the sales increased to $382.8 million. That is an increase of 11%. For organically it is 8%. The EBITDA profit increased by 45%. The net margin of 8.5% for the continuously. Also considering that we have no one of a debt in the first six months and lastly we have runoff effect of $10 million. General Brighton cash flow increased by $22.9 million despite the Fed accounts of diverse increase of more than $20 million due to the high reserves. Also there remained quote red and reduced. That the measure takes in the last few years had a positive impact on our financial performance. The net significant increase but also due to the runoff cost last year the increase was more than 200% to $23.5 million. Last is only the equity ratio the 51% compared to last year at the end of June to 68%. That is due to the acquisition of Siber in July 2024 and the offset of the goodwill connected to that position. If we go a little deeper to the sales development, the last year we had $345 million sales and now if you navigate we de-invested the climate seeding solution business that has negative impact of $8 million last year. We have the acquisition of Huber. That's an additional $20 million sales in the perfect month 2025. We have an organic decrease of 30 attributions of $4 million and an organic growth of the ventilation business of Thirsty meeting. There was nearly no epic defect in the first six months to week. U.S. Solar main will have an effect in second half of the year and for the financial performance we see that really make progress on one side with a double digit sales increase. We also see clearly operation leverage from the additional volumes that we had on the ventilation plate and also the native H from the last two years to really raise the transformation imperfection of the ventilation business and reduce cost where needed. We also kept investments in R&D stable so invested $12.7 million in the past six months that manufactured to the ventilation business. That is similar to the level that invested last year. Also that the EBITDA margin is double digits. It's 11.7%. We also see a clear improvement compared to last year where we had an approximate EBITDA margin of $10.2 million at 10.2%. Sorry for that. Again last year we had one of the best of $10.1 million. Connected to the climate ceiling at investment and was a start strength and ITS growth big small 2025. There was no warmer for that reported. The canonical growth is negatively impacted by foreign exchange losses. Overall, the financial result of negative is €2.5 million. Again, the net profit initially increased to €23.5 million in the first six months. If I go back to the sales and development in the different countries, we still have Germany as the number one country with the highest growth. Within the Zehnder Group, the ventilation business was growing again, but radiator business was decreasing. The second important country is the Netherlands. It's the country with the highest ventilation flows, but the Netherlands were able to grow in the ventilation and in the radiator difference. Before, the business was stable, there was radiator and also ventilation. It was more or less on the previous year level. Ukraine, the second most important ventilation country on the course place, had a clearly differentiated development. Ventilation sales was growing significantly. On the other side, we lost on the radiator per site. If you see the lower picture, 81% of the Versace sales in Europe, then 10% in North America, and 15% in Northern Europe. We only have now 3% in Asia Pacific. That is mainly China for the same drop. If you have a closer look to the ventilation segment, as mentioned, domestic has increased by 24% and the decision pertain predominantly besides the acquisition, the average positive trends on the activities in the market, but also some stock increases on the customer base. They also had a significant impact on the profitability, the size of investments, the market expansion, and also in R&D. The margin increased to 13.1% and the net flow then transferred to €3.3 million habits adjusted, which is a positive development compared to the year before. On the other side, on radiators, the business expansion already grabbed. It's further decreasing. We lost 8% growth. Organically, it's a decrease of 3% and also these lower volumes, but also a shift towards lower price model. We had Renegade 1300, a total of €0.7 million a bit source tube that is mainly related to low gas utilization and also some negative price effects in the first six months. 2025. Regarding the long-term development, on the ventilation side we're able to achieve the double-digit margin over the last few years despite this investment in market expansion. On those integration with radiator type we have a negative trend, and as already mentioned by Max, we have initiated different measures and some of them should have a positive impact. Also, in the second half, normally we have a seasonality that the second half of radiator lines would see better than the first six months. With that, I would like to hand back to Matt for the outlook. Thank you very much. Market strength I guess the fairest. You say that we anticipate our key markets further recover although at different pace. One of the key questions obviously what will Germany do, our largest market. There will be a certain effect by the economic stimulus factors and it sure will have some positive midterm impact. To what extent we will benefit from that, and you see that on the right, that it's questionable particularly regarding timing. We are lazy local so we do see an increase in building permits. However, until we have an impact, we estimate that it's going to be late 2026. Now if you look at the North America channel, seems to continue in a positive trend. There may be a third question mark is what the U.S. housing market will do. Probably we had a report from newsletter this morning, lukewarm, so I would share that assessment. Possible efforts to slow down might be related to the U.S. tariffs. In fact, obviously remains to be a question mark on how they will impact or when and to what extent they will come. Now, as I mentioned before, we have several initiatives, also see increased efficiencies but also reduce costs. We anticipate the large share of the impacts of these production consolidation in effect in half. At the same time, if you look at also China Dewalt, so for the full year, and you have seen that in the announcement, we expect sales between €740 million and €770 million. Reason is that normally the fact in half in insulation is a little bit weaknesses that has to do with how many working days we have, that is not a feeble fitness. On the other hand, I think that's the question to spend that can balance. We have the radiator business, which traditionally was always a little bit stronger during the heating season or the preheating season. However, and I think it all comes to dictate, that's an effect that we have not seen, at least not in the last couple of years. Therefore, we also anticipate a margin approximately on the level of the first six months for the remainder of the year. I showed this chart before. We maintain our course strategically. We will focus and go on the ventilation and there in particular to the solution business. I'd like to go a couple of examples. Clean air solutions, which is the smaller service business for cultivation commercial applications, is definitely an activity that we will seek to accelerate the growth in. I can say that again in the first half, like in the last few years, it is over-proportionate results, contribution over-proportionate to the result. We highlighted the service topics and really want to start actively manage the installed base. Here in Europe, we have more than 1 million units in ventilation that are installed. I think that's always something that takes time to develop. We have initiated several parts which really see growth in the mid term. Replacement, as we started more than 20 years ago, will also have a certain base effect that some of the older units will have to be replaced because the things that come to be on the fair lifespan, like we did in the past. We will also look at our priorities. We selectively increase part fit expense, IT enterprises, also additional markets. I think you've seen and saw it before, for that reason that we want to continue to do in terms of operational levers. The fact that we got hammers in the radiator segment by the market, we are more than 30% in volume down versus pre-COVID. We have done many adaptations in terms of capacity but also in reducing the cost. Should it finally also recover, then we will have quite an operational leverage. Because of the shift towards more ventilation versus radiator, the whole business model is shifted into an asset-light business model. I think in terms of efficiency gains, it's both for rental rates on graduated. True that we do have still opportunity. You have seen in the charts before that we have acquired many small companies, normally with a portfolio in the midst of also going forward, looking at controlling this portfolio that gives us possibility to reduce component but also to obviously hopefully leverage volume towards partially automating some of the assembly. The same is true for radiators markets. Obviously, we're constantly looking how we can optimize the portfolio but also the service that we make available. I guess the first step from our results 2024, we have been able to make the first half the elements I refer to in my previous chart. We feel we're on a good path toward our midterm targets. I guess in a nutshell, it confirms that the strategies to become or be a global provider of indoor climate solution, but also a coordinate in that particular segment, is the right thing to do. We are obviously the specialists in the T4 and are competent around anti-latencies for eco-friendly building with an innovative portfolio. They're also the ones that are able to educate the market and the customers, and that's what we want to continue to do and obviously continue our path that we have taken over the last few years going forward. That's what we wanted to share today. I'm sure there are questions, and before we get through them, maybe I can ask the moderator to quickly guide us through the instructions. Thank you, sir. We will now begin the question- and- answer session. Anyone who wishes to ask a question from the webinar, please click the Q&A button on the left side of the screen and click the Raise the Hand button. If you are connected via phone, please press star followed by one on your telephone keypad. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press the Lower Your Hand button on the webinar or press star and two on the telephone. Anyone who has a question may press star and one at this time. Our first question comes from Martin Hüsler from ZKB. Please go ahead. Good afternoon, can you hear me? Yes. Okay, hello both of you. I have three questions if I may. Maybe I'll take it one by one. Can you maybe elaborate a bit on the margin improvement in ventilation? How much do you think was first pain effect? Was there also a mix effect, and did you see kind of a positive price over cost effect? René, it seems to be a very figure for I'll let you answer for. You have a clear operating leverage. If you have high results, then you also have a positive impact on the profitability. We also capped our investments from Moscow expansion. We invest in three solutions because in North America expansion down the south having less and more, and as presented, we the cap generations part, so R&D cost more or less stable compared to last year. On that side, we've heard investors, and then with the countermeasures normals is the highest to count with the highest values there, we normally have a bit less margin due to the competitive environment. That depends on the countermarks, but overall we really benefit from the higher sales level. Probably that is the biggest levers that you had in the first six months. The price slightly increased, but you also have some cost increases, for example, salaries. On that side, there was not a big, I would say, net impact at the end. Maybe just in addition, I also think that the component material prices remain rather stable. I guess at the table situation on price, but the increase stable situation on material and obviously some efficiency gains to absorb the salary increases, the same transactional from volume impacts. Thank you. The next question on Germany. I'm surprised that, I mean new buildings firmly yes, are up, but actually construction of new buildings I don't think across the conundrum. How do you assess your ventilation development there? Even though you seem to be reluctant for Fermi short term with the strong growth you probably had in the first half, what's your view on full ventilation in Germany? Germany is one of the markets where we see a certain resourcing effect. As you say, the new build experience there is not really showing a major impact. Obviously, the hope is, and there are several indications, that there will be some development going forward that this is changing. The sentiment seems to also become more positive. That's why probably it's an impact. We'll get close to have a negative feeling towards the end of this year. That's the whole point. See next year. This year I don't think that we will have a major support on the very market in ventilation. Isn't it the case that internal Zehnder systems, which are less geared to stock effort. We sell both. I mean we sell units and air distribution components, but we sell mostly through the three-step approach. We sell through wholesalers that also then carry extensive components. Actually, what we do see also on the air distribution side, Norway is always a very good indicator on the market development. Traditionally, Switzerland and Germany were by far the biggest portion, or two thirds, of the total air distribution volume. Traditionally, we do not sell air distribution in the Netherlands; they use metal. What you see now is that air distribution is relatively stable. Lights are growing, but the mix of country has changed. Germany actually is not yet recovering. That would indicate the taxable effect before that it won't be t ailoring in t he margin, the second half of sanctuary, the margin grabs. In addition, there are also some products that we launched, as example this cooling unit, so that we sell to existing customers. We also have some innovation solution launched last year. I think it also somehow addressed different markets again for different areas which we not address in the past. To cover it will compensate at least partially the overall declining market, the weak market. Thank you. Maybe the last question for now. For clean air, just to get a b etter understanding, I think it also grew m aybe above average. Maybe you can say something to that. My question actually is do you rather grow with new commercial buildings or do you grow by penetrating the existing commercial landscape with more clean air solutions? Okay, maybe I can start. Growth is very species and it's in the low south 50% quality full year after year, a very similar development. The limiting factor is not the market opportunities. The limiting factor is really, you know, the development of the market itself which we have to do. We measure very closely the churn impact, so existing customers that we lose but also new customers that we gain. Roughly, I would say churn factor is probably around 3%, 4%. Always on top of that, we get to a lower double-digit growth rate. All these are new customers that you have to face on board. It is very much also dependent on finding new applications. Again, who is leaving us? Mostly factories. I mean, that's our main application or logistics facilities that either we saw that we use quite a bit are moving or closing or industries that are moving to other markets as such. I think once you have a customer on board, actual changes are quite good to maintain the cost of. We do have all the courses that we recently have to make them up with new applications. Okay, understood. Thank you. The next question comes from Fabian Piasta from Jefferies. Please go ahead. Hey, good afternoon, gentlemen. Congratulations on the print just like this development yesterday b asically as a reward for that performance. Some questions were already covered. I got two if I may. Maybe you can remind me of t he clean air solutions within ventilation. That's the first one. The second one is on U.K. regulation. I understand that the ventilation regulation is in place since January 1, 2025. Can you really give us some intel on how the pacing is going? How much market you still have to penetrate or whether we are going to run against tough comps when it comes to January 2026. Okay, from Egypt to the first question, what's the percentage of trainer solution on the post ventilation side? Realistically it's still relatively modest. I would imagine it's around the 10% mark of the total. The installation business global, that includes also Medicare and Savion. It is growing, you know, steadily at a very constant pace. We are obviously teaching to explorator that but as I mentioned it's not so easy because you really have to, you know, if you highlight the new markets field, stuff a competence in the market and build up the relationship. That's something that we're trying to be very active on. Now in terms of the U.K. regulation, you're probably closer. I'm sure that has an impact on our shares, on our sales and users. We know as a matter of fact that we were able to gain market share. We are the capital number one. As you know in the U.K. there is a competitor who really is quite substantially larger. We feel that we were able to actually gain some market share in the overall industry. To what extent and I'm not sure whether I'm subscribed right. The effect of the new regulation will run out in 2026 or not. I would not want to make a statement. I'm not close enough to the market. We should see that we have a savings growth which still is confirmed also in the oil intake going forward. At this stage we do not see any slowdown. Not sure that gives you the answer that. Yeah, as I understand, not much of the regulation has secured your P&L yet, and the most is yet to come. Right. I wouldn't feel comfortable because I think it only goes into effect September if I'm informed correctly, but obviously has an impact already before that. Not close enough to the Microsoft to give you actually a number with a good feeder. All right, thanks very much. Welcome. The next question comes from Martin Flueckiger from Kepler Cheuvreux. Please go ahead. Martin, we can't hear you. Can you hear me now? Yeah. Okay. Sorry for that. Good afternoon gentlemen. Thanks for taking my questions. I've got three and I'll take one at a time. I've actually got more but I'll step back in line and come back a little bit later on in the call. First one is on the U.S. tariffs you mentioned in the release and I think also during the presentation that the impact was overall very limited in H1. I was just wondering whether you could quantify that and what your expectations are with regards to tariff effects in the second half, please. You see that most of our products, I'm now referring to products that we produce in North America, Peter, in the U.S. as mostly radiators that they're now partially shipped to Canada or ventilation which is mostly produced in Canada and then gets into the U.S., but Canada is the larger market so they stay in the local market. Most of those products are actually still expensive for maintenance. Now you do have, for example, aluminum, you have some ceramic, you have on some components, you have some ferrous. That's where I mentioned we try to mitigate in alternative supplies. Obviously, it also invites adjustments, for example, for certain radiator tariffs. We did a full exercise when it first came out. What could be the possible impact? The tariffs were never really imposed like that. I think that tells the difficult answer for your second question because you talked, of course, that would be the tariff going to be. We're monitoring closely and we have prepared the different scenarios on what we can do whenever we have what kind of tariffs from which parts of the world. René, I don't know. Do you feel comfortable to make a prognosis on tariff impacts for the second half of this year? I think the target a little bit moving. That's difficult to really quantify it in Utah because the relation and the is also some dynamics. At the end we are well set up. We have low propaganda. We have a setup that at least cost will compensate impact on the other side. If we really have an impact, we also need to increase the prices. If we do not believe that we can keep the prices. If there is any significant impact on the states in the North American market, I'm not able to give exact figures, but the scenarios are prepared depending on the development. Okay, thanks, that's helpful. Now, with regards to radiators, I realized that the main reason if I remember correctly is between September and November. Still very early days, but you know, from discussions with wholesalers, with architects in practice, what's your gut feeling for sales and margins in radiators in the second half? What we see, and there's a third element that is quite crucial in how the competition is here, is that it's a market with overcapacity. What we see in that particular effect in the front decision is some of our competition is really very aggressively volume. There is always a balance to soil in volume to utilize our capacity, at the same time obviously going to, you know, give business at any price. That's where we are on the price pressure. I think if you look at its purchasing behavior, and that is also very much true for the large customers, it has become much more short term. For example, large DIY customers that used to have kind of the order placements in one fit bowl or two big pulse shipments probably around this time, you see that they now really reach in much shorter spirit with much, much smaller volumes. I guess, if you look at the last couple of seasons or fall season or preheat this season, and I mentioned that before, we did n ot see that historic peak. I don't know what it has to do with the climate that was relatively mild. I don't know whether they have been just a conservative renovation activity. Probably as always, it is a combination of it all. If you talk to some of our customers, I have a feeling quite often they also don't have a very clear picture. It might have to do that we have our two largest renovation or our two largest radiator markets are actually Germany and France. It might have to do that both these markets are actually at the tail end of the renovation activity. All of Europe definitely throughout 2024, possibly now a small increase, but still at a very, very, very low rate. I think it's a combination. Forgive me, isn't France, at least according to Europe construction listening to companies like Saint Gobain and the likes, you know, France renovation look is said to be quite resilient this year. Last year was not good. This year it's better, it's stronger, it's supplied growth according to euro again, you know, whether that will also happen then on the radiator we will see. That's kind of, that's going to be default and I think that's that contributing to the insecurities. Have we reached bottom or not? Fair enough. Thanks. My third question, you were talking about some restocking effects in ventilation in the first half. I was wondering what are your expectations or what are you hearing on the ground with regards to the superb potential of more restocking in the second half? Yeah, I think so. I mean, one element was restocking because of pending tariffs that would have happened in the U.S., possibly Marshville factor by the ferry. I think that has happened, and though there won't be a second resulting effect there, the other effect probably is something that you should see yearly because the supply chain is stable again. Realistically, you can also allow for short-term orders on the jet fund, and I think that's obviously something that everybody understands and knows. Therefore, towards the end of the year, it's trying to really all come in a few in a way that could be something that is happening again beginning of next year, but will obviously help the first part of the year versus the second part of the year. Okay, but you're not suggesting, if I understood you correctly, you're not suggesting that there could be a default into NGA, or are you? I would just be, you know, probably a certain logic as there is destiny, not the buildup towards the end of the year. While the AG tweets, I mean that you might have emails that by analyzing the figures you do anticipate in sales a relatively lower development in comparison to the first half. Okay, thanks. I'll go back in line. Thanks. The next question comes from Lothar Lubinetzki from Octavian. Please go ahead. Mr. Lubinetzki is open. You may proceed with your question. Can you hear me? Yes. Okay, that's fine. Thank you very much. Just coming back on the subject of Markov vocabulary. When you look at Germany, you already spoke about that. It doesn't feel like it. The other market too, what is it mainly? Is it objective? Is it multifamily houses? Is it single-family homes? What is really trying to do without it? It's market by market this. You look at the overall picture, the multifamily house is stressfully at the better pace than the single-family housing, which is not necessarily helpful because you traditionally were more focused on the single-family housing. That's why, you know, we are happy to have also now an extension of the portfolio to address the need for this particular market. At the same time, you could also argue that on the single-family house side, to add indoor climate as a topic is probably more prominent. The penetration rate should be higher. Realistically, multifamily is growing better than single-family home. Thank you. Talking about renovations, we are getting different signals, especially for Germany. If you didn't want the last f lago or r eal estate owners say it looks like they have started to really invest again. From what you are saying, you are not seeing it or not seeing it yet. What's your impression there? That's a very, very valid point. I think that was obviously also something that in one Tibet so on before. That's why we are in the midst of a quite extensive and objective market analysis where we are also going into the market with a neutral company, not doing it ourselves, to better understand. We believe that, first of all, the market, I mean, we can talk it. That's where costs get worse. It's not marketing, not really a great market. You're right, there are signs of recovery. What you also have is obviously a shift towards lower price product. We see that in power radiators. You can see cover both the, let's say, design radiators, but also I'd say the mid end portfolio at about 30 grand. There we actually see that you have growth in the, let's say, mid end product portfolio and actually is more on the high end product portfolio, not on the high, high end top ends that only sell, but you know that traditional premium segment. I think that has simply to do with the fact that building consortium is substantially higher than it used to be with all the price increases of all the material that happened in the last three years. There's always something that definitely is not helping us because you also listen up very much on that premium and you're not into the tread steel panels, and pressed steel panel obviously would be a lower cost alternative. I think that's an effect that that's what we're also having out here. Thank you and then the closing of granite in H1 this year. Do you have or did you have extra cost for that, or was it already positioned for? The second question is, can you give us an update on area your acquisition in Canada? The idea was to really use their product portfolio to better penetrate the U.S. market value. Okay, I answered the second and then you can answer the first area. We're very happy with that activation impact, and we need to look at the two markets, Canada and the U.S. Canada is by far the larger market. The first task is certainly in the short term, in the short run, to maintain or expand market share in the existing market. Here, I'm happy to see that we actually ventured into certain markets or regions, provinces where we were traditionally not that strong. We really gained in market share, so that's very positive. In the U.S., we have defined a strategy, and I think we present this to some extent. It's a huge market geographically, and we really have highlighted strategies, deposits that we're going after. That's a developing market situation, particularly if you're going to markets where mechanical ventilation is not yet known and therefore not yet suitable. I guess that's the time-consuming topic. Nevertheless, the potential resale is there. We're also making progress, but in terms of volumes, the lion's share is still with Canada, and it will take time until that really takes at the stands for support. We feel we are making progress. Possibly, you know, in some instances, you know that energy consumption or I'd say low energy building is not such a high topic anymore as it was, you know, in the previous government. It's going to slow down some of this context, but nevertheless, it's going to happen. In the first place, regarding the closure for Switzerland that we made an SEC provision in 2024. There we had the one of course in total of $35 million. That was including the production flows in Switzerland. There are no additional forces in 2025 related to the closure, acceptance, cash outs f or that. Thank you. The very last one for me, I think in one of the conference calls I listened to, somebody was saying that this year in H2 the number of working days will be higher than in H1. I haven't gone through much then, but t hat was the quote. Very careful. I was wondering what it could mean for your ventilation, which is typically Siber and H1. We honestly do not know exactly the figures for all these markets because it really depends on market by market. The biggest impact is really the summer break, summer holidays, and then Christmas break for ventilation. For the ventilation business, you don't have the people on the construction side. I do not see a big impact for the first six months regarding more or less bursting days. Normally it's month by month. One month has one more and the other months they have one less. I do not see the big impact on a quarterly basis. Okay, thank you. The next question comes from Martin Betschart from Rahn und Bodmer. Please go ahead. Your line is open. Hi, good afternoon gentlemen. I have just one question. You said the close of the production generation and the transfer capacity in the radiator segment should come into effect in t he second half of this year. This should help with margins in the second half of the year. Can you give us some color what this means for the margin for the radiator business i n H2? Financing, we are negative develops. We have a clear ambition to turn that around in a positive development. Considering that we have less working days on the ventilation business on the construction side, we need to have at least a certain contribution innovation converge business who achieves the guidance of the same marginalized in the first six months. Yes, there is a clear expectation that disease positive impact for the LGI divisions from the second half of the year. We have a follow-up question from Martin Flueckiger from Kepler Cheuvrex. Please go ahead. Yeah, thanks. I think you can hear me now. Corey, I need to dwell on that Greenishin story. Can we talk a little bit about the expected cost savings that you're expecting for H2? You know, to better understand what we're actually talking about in terms of the margin recovery story for radiators in the second half. At the end, it's a single-digit cost saving impact for the full year that will have an impact in the second half. We also need to consider that we have a negative development on the product mix side, but also prior side, so that at the end the crisis can do we have a net positive impact with the different trends that we see occur in the aggregated business. It will have a significant impact considering that we are also making the first six months of racing. It tracks about small single-digit medium impact. At the end, it's not a huge small single-digit. Okay, second question please. Apparently your investments to expand market coverage and product innovation are ongoing to support future growth. Can you talk a little bit about the magnitude of these investments and how they're impacting your margins across the two businesses? If you look at what we have invested in the past and since you sold it also on one slide, including M&A, I'm not sure. Did you also show the R&D? That sounds funny, right? Yes, it was down the level of last year. We try to maintain that at certain levels, and that face you can assume that we will continue to do so. The same old PC opportunity like we did with fear. We also are investing in whether additional external growth would make sense. You know, based it's really a similar contract we had in the past. The margin goes on location topics that we try to allocate sources where we see more potential. That also means we reduce investment areas, and then we allocate the sources to areas where we really see the growth potential in those departments. Okay, thanks. Just a final one. We didn't see any exceptional items in H1. Are we going to see any in H2? Now the guidance is short fit, so on a similar level, and it's the first six months, and that is the guidance so far. There's not any plans for bigger one o f course. Some people nowadays also in important positions have frightened, erratic behavior. We hope that none of this will impact us. At this stage, it's not foreseen. Okay, thanks. Martin. We take the last question from Martin Hüsler, who's a follow-up from ZKB. Please go ahead. Yes, thank you. I have a couple of questions, smaller ones maybe. I saw the CapEx in the first half was rather lower than last year. Should we expect the cumulative plan for H2 or for not, so we do n ot give a guidance for the CapEx, but we hold back a lot of, let's say, investments. At the moment it's not intention to really make big investments in short term. It will not increase significantly in the second half. There's a trend that there's really certain investments where we see potential to go. Okay. Thank you. The second question on page 20, you showed your operational levers, and one of them is fission to asset-light business model. I was just wondering whether with that you mean more ventilation against great water, or if you also see in ventilation levers to become more asset-light or even more assembly than you already are. If mostly the first is more cysts in proportional ventilation swath radiator. But those of attended service force with image ventilation obligated push will be auto asset-light. The last question from my side. Looking at your sales guidance and o bviously, it's quite a bit of a range, I was just wondering whether you have a better understanding or a better view for ventilation or radiator. Differently speaking, which segments do you think might rather be leading to a downside or an upside of your expectation? I mean, predictability on ventilation is probably better at this phase also due to the trend. At the same time, the impact of the radiator because of the seasonality might be sustained. It's not logically a consequence on how it will come out at the end of the years. I think realistically I know there is a certain strength that is visible on the ventilation axis. It's used for certain console, whereas on the radiator still have to be fruit. Okay, makes sense. Thanks a lot. Thank you, ladies and gentlemen. That was the last question. I would now like to turn the conference back over to Matthias Huenerwadel for any closing remarks. No, I just want to again thank you for dialing in, and I hope that we can see a positive second half. In the meantime, I wish you, if you have already or not have already, vacation, wonderful, common, brave, and I'm sure we'll be home too. Actually, thanks a lot for calling me. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call and thank you for participating in the conference. You may now disconnect your lines. Goodbye.