Ladies and gentlemen, welcome to the Zehnder H1 2026 Media and Analyst Call. I am Sandra, the call's operator. I would like to remind you that all participants have been listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. 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 then click Raise Your 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 Assistance button on the left side of your screen or star zero on your telephone. At this time, it is my pleasure to hand over to Matthias Huenerwadel, CEO. Please go ahead, sir. Thank you very much, Sandra. Welcome, everybody. I thank everybody that you're dialing in. Take the time to listen to our presentation. I will do that together with René Grieder, our CFO. In the next 30, 40 minutes, we'll give you some more insights about the H1 in terms of what happened with the business in the regions, also in the segments about the financials that we achieved, also a short outlook for the remainder of the year. We should have plenty of time afterwards to address any open questions from all the participants. If we look at the H1 2026 at a glance, we saw further sales increase and quite a good improvement of the operational result. It's clear that this was very much driven by our ventilation sales. They had a continuous growth, solid growth of roughly 8% organic. That was in the case both in Europe and North America and also across all sub-segments of ventilation. At the same time, the radiator activity stayed under pressure. At least we see a certain stabilization in the European business. On the other hand, if you look at the total, it had a decline of roughly 3% organically. With that development, the ventilation portion of the total sales are reaching now 69% of our total sales compared to prior when it was 66%. This growth was very much supported by the launch and also the rollout of new products in new markets. For example, the Zenia product portfolio, which we already had launched in some markets, we extend into other markets. Also with the continuous growth of our ventilation-based climate solution. That definitely is also in relation to what we see with the changes of the climate. Very nice growth we were able to achieve in North America. That is thanks to our strategy, our initiatives we executed consequentially, we believe that we now see also the benefits from that. Service is another very important topic for us. We rolled out existing services into other markets, we also launched some new services. One example I will present later on. Finally, definitely a highlight for us was the opening of several Zehnder Academies. The ones of you that have been at the Investor Day last year, they have seen the academy here in Switzerland. Similar setups, not always the same size. These are very important pillars for us to really transfer the knowledge to all our partners and also customers and help to proliferate our expertise in technology for modern buildings, both in terms of what good indoor climate means, as well as energy-efficient solutions. Finally, that was announced about four weeks ago, we started the process of the divisionalization of our main activities, radiator and ventilation in Europe. I will also give you a little bit of an update on that one later on. Let us look first at the market. Yes, we do see overall in Europe a recovery of building permits. However, this is not yet reflected in construction completions. On one hand, there is a time lag. On the other hand, it is also fair to say that not all the permits are ultimately executed. A very good example for that is Germany. Based on uncertainties, higher costs, interest rates that have risen, that obviously has also an impact. Some markets are doing better, Netherlands, Spain, Eastern Europe, but there are also certain disappointments. In the first half, we were somewhat disappointed about the U.K. development. That was a market that did very well last year based on a particular regulation, which helped us in one part of the business. On the other hand, we believe that the Building Safety Act, which was implemented in 2024, has an impact also there on the building construction because it is a very rigorous process, a three-stage process that every permit has to go through before approval, and there seems to be a bottleneck now also with governmental positions. Until they finally get the permission, obviously, many things have happened. Costs are more expensive, that seems to be the case that some permits or some permits ultimately are not being executed. On the positive side, once you are specified, that means that you can also not be unspecified anymore. I think what is also fair to say that, for example, U.K., we do have quite a solid order pipeline with projects that are specified. They are just not happening at the speed that we expected them. If we look at North America, it is not so much the market itself, it is definitely the trend towards a better indoor climate that supports us. Our portion in the market is still relatively small with these kind of solutions, but also stricter codes that are developing state by state, sometimes even at community level. On China front, there is nothing new to report. China reported again a double-digit decline in new construction starts, that obviously has an impact on our business there as well. Our radiator markets remain challenging. Even though it is not so much the volume, it is more also the structural change. We see a trend from, let us say, higher-end products towards lower-end products or lower price models, that is something that we also see in our product range. At the same time, there is an existing overcapacity, which puts the whole situation, the whole business, under price pressure. Obviously, something that we want to focus on, we also see an ever-increasing interest in demand, is the cooling solutions, which we call the ventilation-based cooling solutions. On one hand, I have to maybe refresh your memory. Even a regular, say, in the ventilation, already has a passive cooling effect. In that, for example, we utilize the possibility to bring in colder air during the night through a bypass and then maintain the cool air in the house through the energy recovery capabilities with the heat exchange. That means the hot air is staying outside. By that, we already have quite an impact on the indoor climate. What we have launched couple, three years ago is the ComfoClime, which is a module that you can put on top of the existing ventilation unit, which has then an active cooling. That can be done as a remodel, but it can obviously also bought in the combined set for new build. There we see that the interest is increasing strongly, not least because of the current situation and the many hot days during the summer that we face also this year. On top of that, we have a new product, which is launched in few markets only, particularly Spain. That's also product of the acquisition of Zehnder. That is not the same like the ComfoClime. There it is an external heat pump, like with a split climate system or air conditioning. The difference to an air conditioning unit is that we replace the majority of the air and exchange it with fresh air, and on top of that, cool. The cooling performance is higher than with the ComfoClime, and at the same time, it doesn't have the same draft like you would have with the regular air conditioning unit. That's something that we feel has also some potential, but still very much at the beginning. Another very good story that we're happy about is the rollout of the Zehnder product portfolio into all European markets. You see we have introduced these products now in Italy, Belgium, and so on. With the introduction now to the last remaining markets in the Nordics, we will have that portfolio available across all of Europe. It seems to really fill a gap in a more price-sensitive multifamily home market. That this is the case, you can also see in the increase in sales. In the H1 this year, we're actually able to increase the sales for full year 2025 by more than 150%, the volume's really starting to become meaningful. If you look at the North America markets, we are very happy that we have now also a first Academy in North America, which we opened in April, which gives us the opportunity to do trainings, to also explain, like we do here in Switzerland, on how things work, how things do not work. Really gives us the possibility to convey this thought leadership to all these stakeholders that we want to address it to. At the same time, we have earmarked a phased approach into the states or various states in the U.S. You see that at the top right. We were able to increase our partnerships with new distributors, sometimes change distributors, across the North American targeted markets. Finally, it's very much about also making the solutions more familiar in the market. We had several campaigns. For example, the Wellness by Design campaign, which was very much targeted towards luxury homes and spas. Also in Canada, a campaign which we call Proudly Canadian. There it helped us that one of our main competitor actually ceased the production in Canada. As you know, there are also certain, not animosities, but at least challenges between the two countries based on the tariff situation. The topic that we announced in June is that we have started the divisionalization of our main activities in Europe to really reflect the shift of the markets in totally different directions, and hence the need to focus on these different priorities across the whole value chain. On one side, we have the ventilation business. It's in a growing market. It's really about innovating, being the best in class. Also making sure that we expand in the market, expand our market reach. On the other hand, we have radiators, which is obviously a shrinking market, where it's all about highest cost efficiency, but also adapting the organization, but also the offering to the market reality. While we are not changing our fundamental strategic directions, this should really give both activities the freedom to operate and set their priorities, while at the same time have the full end-to-end P&L responsibility. We believe that will give an undiluted focus, a lower complexity, a higher agility, and really a more entrepreneurial way forward. This has an impact. I mentioned that also the way we're set up at the Group Executive Committee, we reduce from six to five members, and we will have new, a president for Residential Ventilation Europe and a president for Radiators Europe. In the meantime, since the announcement, Silvia Witschi, she joined the Group Executive Committee, and her and Jörg Metzger, they will take over the responsibility for the division, Residential Ventilation Europe with Silvia, and President Radiators Europe with Jörg as of 1st of October, while our former colleagues, they are now phasing out, and they are still available for the transition until latest end of the year. The process to go into that divisionalization, I don't want to go into details, but I can say we are on track. Idea is that by 1st of October, our plan is by 1st of October that we really have operationally all the business functions split. That's the first stage. Then in the second stage, on January 1st, 2027, we really want to also establish all the surrounding functions, to some extent also supporting functions, so that we're fully autonomous within the divisions. Then, as of then, it's about optimization. It's about really living in the new setup going forward. This chart is something that I always show because we're proud. You see 2026 is not yet in, but you have seen the increase, we believe that we can continue that chart. What I would like to do is also give you a couple of examples, because I believe they're interesting. The first one on the left is actually such a solution where we have a combined ventilation and cooling system that we put in all these new apartments. Interesting is that these are apartments for social living, and that is very much related in that particular situation with overheating, which is becoming more and more a challenge in many of the cities all across Europe. The one on the right is also a nice one. We got a prize for that, and it is a light commercial unit. Specific topic here is that it is specified and certified as a Passive House unit. Also there, we try to differentiate with our offering, and we seem to have some initial successes. The one here on the left is a typical example from our Canadian colleagues. That is a big development in the Toronto area. You see, because it is mandatory to equip every apartment, every new building in Canada, we see that all the 700 apartments were actually equipped with units that we were able to produce and deliver. Finally, on the right side, that is now the custom-built home situation, which is very familiar to us, where you see a design house that has also a ventilation from Zehnder to guarantee the necessary indoor air quality of the climate. The Zehnder Academies, I mentioned that. That's something that we really want to put into all relevant markets. For us, it's absolutely crucial that we can increase the penetration rate, and therefore, also the understanding and the knowledge about our solutions. This is our possibility to do that, and hence, that we were able to open four other academies is really a big highlight for our organization. The air quality monitoring is the service I wanted to go in specifically. This is actually a service in our Clean Air Solutions business, where we have air purification as a service as our business model. Instead of just cleaning the air, we also are able to monitor the air online, so you have constant visibility on which trends you have in your pollution, but also can set alarms, and ultimately can also be an entry point, because very often, customers or potential customers are not even aware of the problems. They might see some dust, but if you really then make it visible, might also be an entry point to then add, actually bolt on the air purification service. It's really an add-on service. It's all inclusive. We organize installation, we organize positioning, we organize maintenance, we organize replacement if necessary. The only thing that we are asking for is actually a flat fee per month, like we do also for the air purification in Clean Air Solutions, that particular segment. Also a couple of projects that we were able to do on the radiator side. Interesting here, it's a new build, and it's a big project. We see 377 apartments in Poznań. You see up to 1,300 units were sold and built into this project. Interesting is also the last bullet point. That's only a first stage of this project, and it's anticipated that there will be several more, and hopefully that means having had the first order that we can also then follow up with the orders for the next project phases. On the other side, another example that's really now for more the premium side with the Charleston that goes into this 5-star hotel as a refurbishment. That would be probably the more typical projects like we know with 829 units for the electric Charleston in every bedroom. Much for the H1 and a couple of impressions about our projects. René, I would ask you to take over. Thank you, Matt, good afternoon also from my side. I'm happy to give you an overview about financial performance in the first six months. We achieved a sales growth of 3%. Organically, it was 4%. We had 1% negative foreign exchange impact, mainly from the Canadian dollar and from the US dollar, which is weaker than one year ago. After a slow start in 2026, sales picked up with especially strong months in March and June. We had already two price increases. One was in April and one was then in July, an extraordinary one in July to offset the higher raw material costs in connection with the Iran war. Customer typically place orders ahead of a price increase to benefit from the lower price level. June alone generated EUR 8 million more sales than one year ago. On the profitability side, we achieved adjusted EBIT margin of 9.5%, which is within the communicated mid-term target range of 9%-11%. It's a clear improvement. The sales increased 3% and the adjusted EBIT 15% to EUR 37.7 million. On the other side, the operating cash flow generation was weaker than expected. There are three main drivers for this development. First, a strategic inventory build-up to safeguard custom deliveries during ongoing supply chain volatility. Second, trade account receivables increased, reflecting the continued growth of our ventilation business. Third, we had higher customer and employee bonus payments, as well as tax payments in the first six months compared to one year ago. In the H2 of the year, we are expected to have higher operating cash flow again. From the one-off effects, we had one one-off effect that is from the introduction of the divisionalization setup in Europe. That was EUR 5.5 million in the first six months. The net profitability slightly increased by 2% to EUR 23.9 million. The equity ratio increased by 5 percentage from 51%-56% compared to one year ago. From the sales development, in the first six months 2025, we generated EUR 383 million. The radiator business slightly decreased by 1% for the total group, the impact was EUR 4 million. On the other side, we were able to grow the ventilation business by EUR 20 million. That means 5% for the total group. Again, the negative foreign exchange impact of 1%, that was half/half. Half was ventilation and half was radiator. Overall, we achieved a 3% increase to EUR 395 million sales. Our EBITDA improved by 11%, the adjusted EBITDA. That is 12.6% of our sales or EUR 49.8 million, which is a positive development as well compared to the year before. Let's have a deep dive to the different regions. The main region, Europe, generated 82% of the total sales. There, the ventilation growth was 7% and radiator decline was 1% despite higher volumes. We sold more radiators, but with less value at the end. North America, there was a 2% increase in EUR, but 8% in local currency. The negative impact from foreign exchange effect was 6%. Ventilation is very strong growth in North America of 18%, but radiator declined by 10%. Asia Pacific with clear decline. It remains EUR 10.6 million sales in the first six months. On the left side, we see the main countries for ventilation on top. That's Netherlands, Germany, U.K., Canada, and Spain. Spain is now the most important country, and Switzerland is then number six now. That is due to the positive development in general in Spain, but also due to the acquisition of Siber in 2024. The five most important countries here on the ventilation side contributed to 55% of the total ventilation sales. On the radiator side, we have the five top countries, France, Germany, United States, Switzerland, and Italy. These five countries contributed to 76% of the total sales. Unfortunately, three of the five countries with a decline, France, United States, and also Italy, were not able to achieve the level of the sales from last year. If I go to the segment development, we have a clear positive development for the ventilation segment. There's a further increase of 7% to EUR 272 million. Organically, it was 8% due to the negative foreign exchange effect in North America. As already mentioned by Matt, we have countries with very positive development, the Netherlands, Spain, Czech Republic, and Germany. On the other side, the U.K. was quite weak. North America in general, positive. U.S. and Canada with a positive sales development. Due to the sales increase, we're also able to increase our margin despite the further investments in research and development, but also market development, as mentioned by Matt, for example, in North America, but also for Clean Air Solutions. We achieved EBITDA adjusted margin of 13.9%, and in EUR it's an increase of 13% to EUR 37.8 million. On the radiator side, there is a decline by 5%, or organically the decline was 3%. In Europe there was a decline of 1%, and in North America there was a decline of 10%. We see a trend to lower price radiators, and also the renovation activity in general are still quite low compared to the past. On the profitability side, we're not able to make a big improvement. We're still slightly loss-making with EUR 0.1 million, despite different optimization measures. We closed the plant in Grenchen last year, and we also introduced the one-shift model in our German plant, this year as well. This will have positive impact further, this year as well, but then also for the years to come. On the other side, we lost on the pricing and also we had a negative impact from product mix. Balance sheet. We still have a healthy and strong balance sheet. As already mentioned, we had an increase in stock due to strategic buildup of inventory and also higher accounts receivables. That's on the asset side. We also had a third increase of the equity ratio, and we switched from a negative liquidity situation of EUR 12.6 million to a positive net liquidity of EUR 11.9 million now at the end of June 2026. That's positive as well. If we see the long-term development of the two divisions, the positive trend from sales and also profitability continues on the ventilation side. We see a growth on that side, to have a driver for the margin development. On the radiator side, we see a further decline, and that is then also impacted on the profitability development. Overall, as already mentioned by Matt, we generated 69% of our sales in the ventilation segment and 31% of our sales on the radiator segment. With that, I would like to hand over back to Matt for the outlook. Thank you very much, René. If you look at the market overall, yes, the geopolitical situation, as we all know, is not really improving a whole lot. That will have an impact on all European economies. Nevertheless, I think that's also anticipated by all the forecasts. There seems to be a recovery happening. I think the only challenge is that it takes time. While we see that some markets are doing quite well, and I mentioned them before, Holland, Switzerland, we just also read it this morning in the newspaper, Eastern Europe, Spain, but also U.K. we believe will catch up to some extent. We also see other markets that are just dragging on with that recovery, namely also Germany, which has, again, this year, a lower completion rate, substantial lower completion rate than last year, but also Italy, Austria, smaller countries, and Belgium. If we look into the 2027 forecast, that is supposed to improve steadily, but again, the challenge is it is a very timely process. The renovation market has also stabilized, albeit at a relatively low level, but there the same situation. We believe that it is going in the right direction. However, H2, to what extent that will already have an impact is questionable. And definitely on the radiator side, competitive pricing is ongoing, and also that certain structural shift towards lower priced models. North America, actually the market itself is not so different from Europe. If you take Canada, for example, Canada housing starts have actually declined, at beginning of the year by 7%. And also in the U.S., there is a decline of 3%. Now, it's different by segments, so in multifamily and renovation markets, we see a higher resilience. In the end, it's not so relevant for us because for us, the relevant topic is really how fast can we get our products known, our solutions into the market. That's why we don't believe that this will have such a massive impact on the future for us. China, I'm afraid to say there is no change anticipated, even though also there are certain niches like the top housing market are slightly recovering, but then in the mass volume market, there is still a decline since there are massive overstock in empty housing, and there is really also a price decline for the available housing. It's also the purchasing market that is massively under pressure. What does that mean for us? Well, I guess not an immediate change in the trends that we are experiencing now. Obviously, we believe that we do have the right strategy, that we also see the benefits of these initiatives, and we will try to really focus on those initiatives. On the ventilation side, it's further investments into product innovation, into product launches. It's the service business also, the market penetration expansion, and on top of that, also digitalization, which offers, again, additional opportunities. At the same time, with the radiator side, we do have to leverage now the existing footprint, which we still have opportunities. I mentioned that we closed the plant last year, so these impacts have not yet shown their full impact. At the same time, we have to continue to adapt to the market realities and see on how much we will support it by a recovering renovation market. The situation will be very different by market, so that has then also to do to what extent we are exposed in what market. North America may be a certain lull, temporary more because of some decline of investments into new projects. I think in general, codes working against that, increasing codes, but also the penetration rate. We have to continue to be cautious with how we operate and ultimately, what that means in total anticipation for the year. Yes, we believe that we should be able to maintain a margin at the level for the first six months. As I mentioned, that will be within the targeted range. Sales, we have a bandwidth from EUR 770 million- EUR 790 million, so we are short of the 5%, also related to the delays of the recovery of the market. These are the anticipations for the H2 of this year, and I'm sure there are questions that you would like to ask and that we can try to address. I would hand back to Sandra. Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question from the webinar may click the Q&A button on the left side of the screen and then click Raise Your 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 been secured. If you wish to remove yourself from the question queue, you may press the Lower Your Hand button from the webinar or press star and two on the telephone. Anyone with a question may press star and one at this time. Our first question comes from Martin Hüsler from ZKB. Please go ahead. Martin, we can't hear you. Can you hear me now? Yes. Yes. Good afternoon, everyone. The question I have is more about the market trends. You mentioned in ventilation, there are several markets in a downward trend when it comes to building completion or probably also building starts, however you outgrow those markets. My question first is, do you see that the penetration with, let's say, ventilation systems is ever increasing, or is it the penetration of Nearly Zero-Energy Building or, let's say, low energy buildings that has a much better trend than the overall statistics? What else could be the reasons that you outgrow the markets? Probably market share gains with new products as well. Maybe you could shed some light in some sub-markets. Yes. I think it's a market-by-market situation. I think certain markets, you do see an increase in penetration rate. You also have some markets that have 100% penetration rate, like for example, Holland. There, we're directly linked to the market development. Some other markets like Switzerland, I believe it's a relatively stable situation, so not an increase. I think, besides that difference by market, what definitely also has an impact is that we're able to secure with new products, additional adjacent fields. Realistically, while this is taking time, we believe, for example, with this climate solution topic, we have very big opportunities, for example, also in the markets that we have been traditionally in for a very long time. For example, Germany, but also Switzerland, because as you all know, at least the ones that are sitting in Switzerland, we experienced it right now again. The climate or the heat period during the summer is really getting much longer. Cooling becomes a major topic in many houses. I think that also has quite a substantial effect, for example, in Germany. Let's not forget, we also have an underlying replacement element. In the markets where we have been for a long time, obviously the replacement becomes to be more and more relevant. Holland would be the first example. That's why Holland is not only 100% ventilation with heat recovery like we do, but it's also a replacement effect that helps to actually overachieve the market growth. I think it's a very differentiated picture market by market, but I think overall, the trend towards passive, or not passive, low or close to zero energy housing is clearly one that is happening. In some markets, there are also alternative solutions. Clearly our ambition, that's why we also promote these academies, that's why we promote to bring people to these academies, to really get them excited about what it means to have a good solution, good indoor climate. That's something that we really try to push and obviously increase penetration more and more. The downside of it's a more costly solution, particularly where it is very price sensitive. Alternative solutions can be more attractive. I think there, obviously, we try to counter to some extent, but it's still a more expensive solution, which with an offering like the Zenia offering, that is, let's say, somewhat at a lower price point than, let's say, the traditional offering with the ComfoAir Q or the product range that we have out of main facility in Holland. Thank you. That's very helpful. I have two more questions, if I may. First of all, can you remind me why usually ventilation margin in the H2 is lower than in the H1? I would ask René to comment on that. I think I know the answer. Anyway, René, why don't you give the answer here? It's also connected with the sales development. Normally, you have more working days in the first six months because on the construction side, August and December are not really full months, that's then also the impact on the profitability if you have lower volumes or lower sales. It's not a mix effect, that in the H1 you sometimes, I don't know, you rather make or less systems than in the H2 of the year? No. No, I think the mix effect, Martin, is very much dependent on which country does well. I think that's much more important on the mix of our products than actually a seasonality in which products sell at what month the best. Okay. Thank you. Then the last question at that time is the air quality monitoring that you showed, this CARA, just to understand this correctly, this is in combination with a ventilation system, or is this a standalone, just a metering that gives indications about the air quality? Well, you might remember that we looked at a target last year, which we then concluded we do not want to go forward, which was in a different area. It was in a similar area, but in air quality monitoring. The ultimate target is clearly to combine the solutions. At this stage, we start now with an add-on service because it's actually, in many industries or applications, also very important to have proof, or you want to have proof on how good the quality is. Now you can buy sensors everywhere. The difference is that you actually do have the guarantee that they are positioned, that they're installed properly. You don't have to invest, you don't have to bother about anything. You just get it available. Ultimately, it's clearly the idea to then utilize this monitoring and combine it with the purification. Don't forget, in the air purification unit, obviously, we also do have certain sensors, so we can already do that independently of showing it. With this, you can also show it online to every customer, and they have the real-time proof of what is happening. Thanks. The last element may be, and I think to what extent that is helpful, we will see. There we have to make market. Many people are not aware of their issues. I think with also at least giving them a possibility to start with a smaller service contract and then really understanding what the situation is also over time, then to also address the topic with the air purification as an add-on service this way is also an opportunity. The next question comes from Martin Flueckiger from Kepler Cheuvreux. Please, go ahead. Thanks. Good afternoon, gentlemen. Thanks for taking my question. I suppose you can hear me, right? Yes. Cool. I've got several questions, and I'll start off with three, and then I'll step back in line. I was listening to your elaborations about building permits growth in Europe and what you expected in terms of market growth going forward. I was just wondering, are you referring to the discrepancy in building permit growth and new housing mortgages in Europe? Because there's quite a bit of a difference there. If I did the math correctly, it's around 13%, 14% so far in Europe for residential new build permits, whereas mortgage volumes for new house purchases are only up like 2.5%. There's about a 10 percentage point discrepancy there. Are you referring to that? Is there anything else behind that? I suppose I'll take one at a time. Basically what we see, one is the time lag. I guess that has nothing to do with that. The time lag until a permit is really executed can be substantial, and obviously we are a late cyclical company, so we come in at the end. The second is that, yes, we do obviously face increasing costs and what we have seen, and I think there are also statistics from the ifo in Germany, that even though the building permit rate is increasing, a substantial portion of those permits, because of change in environment, is never executed. The point is probably we cannot do a direct link between permits and ultimately the indication of what will be completed. That's the point I wanted to make. Okay. When you say not being executed, you mean postponed, right? Could be. Ultimately in the end, it's the question whether the investor still thinks it's interesting enough or not. Could also be. That's a little bit of different situation. The one I mentioned in the U.K., this Building Safety Act was imposed after that big fire, and this is a three-stage process that you have to go through, and the government has to approve at every stage to go to the next step. At least that's my understanding. They do have limited resources, which leads to a bottleneck. Until you get a request for a permit back, the world has changed, and some of these projects then are just being delayed. They're still being done. Some other projects, they're no more. They will not be even started anymore. Okay. That's helpful. Thanks. I guess the next question is for René. I've heard you talking about operational cash flow and the increase in working capital. Just could you elaborate a little bit more maybe on your expectations with regards to working capital trends in H2? Yes, sure. We had a buildup of inventory, as mentioned before, and also trade account receivables. That's mainly due to the strong month of June. Normally the H2 of the year we should be stronger, and we should not have a further increase in working capital. We expect to clearly pick up of the operating cash flow in the H2 of the year. Okay. Makes sense. Are you basically saying then that the headwind on cash flow that we've seen in H1 should more or less persist for the full year? We should have a clearly positive development H2 of the year. Fairly positive. Yeah. Overall for the year, do you expect working capital still to be up? Last year was extremely strong, so that will be not realistic for this year, especially if you consider that probably the inventory we try to keep a bit higher to make sure that we are able to deliver to our customers. The trade accounts receivables are always higher in June than in December due to the seasonality of the business, where the sales are normally high in June and low in December. Okay, thanks. Then, my third question for the time being is, I guess a clarification question to Martin Hüsler's earlier question regarding the ventilation margin in H2. Do you expect a normal seasonal pattern this year, i.e. a lower margin in ventilation as a result of the factors that you've mentioned, René? Should we account in our models for other drivers as well that are significant for the ventilation business area? Normally, the margins are in line with the sales development. If you can increase the sales, we also have the possibility to increase the profitability. As mentioned before, we normally have more working days in the first six months. That means we have, I would say, a better position to have higher sales in the first six months than the H2 of the year. That August and December are normally, I would say, with low working days on the construction site. Yes, we will have some pressure on the profitability compared to the first six months. From the ventilation side and the radiator side, we're different. There normally we have stronger months in the H2 of the year. We continued to make sure that we can realize the optimizations that we already started. We still have different areas to further improve as well. If I understood you correctly, basically you're saying ventilation H2 margin is slightly down sequentially, radiators up and hence the roughly unchanged margin in the H2 versus H1 for the group. Is that right? That's a possible scenario, depending on the sales volumes at the end. Of course. Thanks. I'll step back in line. Thanks. The next question comes from Leonie Zirn from UBS. Please go ahead. Yes. Hi. Thank you for taking my questions. The first question would be on the guidance. If I look at your total revenues now and multiply by two, I already get to the upper end of the guidance. I think you mentioned previously that you would expect a better H2. My question is: Is kind of this guidance to be seen as conservative? If you multiply, we already get to the upper end. Some comment around this, and I'll follow up with the next question. Perhaps there was a misunderstanding. Normally, the H2 of the year has less sales due to less working days. From the ventilation, it's really working days driven. On the radiator, yes, then normally you have a seasonality that you have some, let's say, more volumes in the months before the winter season. That means September, October, November. Ventilation is clearly working day, the critical factor. Leonie, maybe I can also add one element, which is difficult to guesstimate. We have now a second price increase as of first of July. Quite normally, you see before the price increase, some additional orders, especially for stock keeping customers. To what extent that now might put a little bit pressure on the H2 is really difficult to anticipate. I think, normally we do not have two price increases in such a short sequence. They're necessary because of the increase in raw material costs, it's absolutely necessary that they are being done, but we struggle a little bit with anticipating the impact on the sales from that. Okay. Maybe on the price increase, you previously mentioned around 2% for April, then now in July. Can you quantify what was the size of that? I have 5% in my notes. Well, one is the price increase announced, the other one is the realized price increase. If you look at the figures, they are pretty much in line with what you have noted. Okay. That is the announced price increase. What would be your expectation, if you look on the full year volume versus price? I would guess that's probably then even if you assume local currency growth 2%-5%, 1% negative FX. Would you assume that volume price contribution is equally split? Is this a fair assumption? René, did you take some considerations about that? We will have a positive price increase in the H2 of the year. Then it's a question about the volume development. We have a range. Of course, the ambition is to have a volume impact, but there are some uncertainties at the end. That's why we communicate a range and not an exact figure. Okay. Two more questions around service and EVO. You mentioned service revenues have increased. Can you say how much of the ventilation revenues service now accounts for? I assume that also Clean Air Solutions count into that service range, or is that wrong? That's correct. René, do you have that figure at hand? Yes. When we communicated in the past that for Europe, we have about 10% from the ventilation side is Clean Air Solutions, and an additional 5% is services from the rest of residential ventilation business. All about 15% of the European ventilation sales is service related, including spare parts, after sales, and so on. Okay. The EVO share of revenue, can you also quantify this, and do you maybe also have a ballpark range or idea of a revenue CAGR for this into 2027, 2028? Am I muted? No. It's still at the end, quite a small portion from the total business, but it's getting significant. When we launched the product in certain countries in 2025, and now in other countries in 2026. Just to give you an order of magnitude, Leonie. If we take just an assumption that we probably produce around, let's say, close to 100,000 units total in Europe, for the European market. The export that we were able to achieve in the H1 this year on EVO was about 2,500. Now, they're a little bit less complex, so also at a little bit lower price. That gives you a feeling of what kind of order of magnitude that can have. Okay. Fair enough. Thank you. Then one last question before I go back in line, around the legal separation and the efficiency gains that you communicated. Have you been able to quantify those in a broad range in terms of cost takeout or additional margin uplift for the next years? First of all, I think we have to do the exercise, as you can imagine, since we have really a shared commercial organization, it's quite an ordeal. At the same time, it really then also gives us the opportunity to operate within the divisions. First step is definitely making sure who goes left, who goes right, and then take that and go forward. Yes, we are working towards also the MTP, which we normally do in September, to understand what kind of impact we anticipate and what kind of ambitions we have. At this stage, I wouldn't feel comfortable to give you numbers. Okay. Thank you. The next question comes from Remo Rosenau from Helvetische Bank. Please go ahead. Remo, we don't hear you. Mr. Rosenau, you are muted. We take a follow-up question from Martin Flueckiger from Kepler Cheuvreux. Please go ahead. Yeah, thanks for taking my follow-ups. I would just like to come back to the topic of raw material energy costs this year, where you stated that you've done an extraordinary price increase in July. Now, firstly, what's your best guesstimate at this point in time in terms of incremental raw material energy costs in 2026? Do you think you're going to be able to fully offset that through higher pricing, or are you going to require cost savings from restructuring and productivity improvements or operational leverage, as it were also, to offset that? René, should I start? You can start. Okay. Well, the biggest challenge is actually the volatility. So, what do you really target to absorb? That's the first challenge, because it's highly erratic. The ambition that we have and that we implemented with the July price increase was the know-how of material price development as of April or maybe May. It's very impressionable now on what will happen going forward that has a major impact. You can say we're already close to August, so that might then be more relevant for the following year. Clearly, the ambition is to absorb it. The other challenge is clearly that you always have a certain time lag until you get an announced price increase fully implemented. That's something that we try to closely monitor now going forward. On top of that, I think in the radiator side, it will be much more challenging because there it is an overcapacity in the market, so it's not so much about cost increases, how pricing is being set. It's about making sure that you fill your plants. In reality there, the price pressure will go on, and in radiators we probably will not be able to absorb all these raw material price increases on steel. Whereas on the ventilation side, I'm rather more positive that this should happen. Again, also dependent on the country mix and the product mix. René? No, I think we're good. Okay. Is it reasonable to assume that with the time lag, we're talking about a maximum of two to three months, or do you expect a duration that is longer than that? That is a realistic scenario for both sides, for the raw material price increase, but also for the price increase from our side. Sorry, did you say reasonable? Yeah, exactly. Okay, that's helpful. Thanks. Just to clarify also, sorry, the July price increase was how much? In the neighborhood as Leonie mentioned it before. Sorry, I didn't hear that acoustically. Well, the announcement was in the neighborhood of 4%-5%. Okay, thanks. That's helpful. By the way, group pricing in H1 overall across the board, was that low single digit, mid single digit? Well, not mid single digit, but was it zero or was it actually one or minus one, something like that? For radiator it was negative, for ventilation it's more or less flat. Okay, thanks. Just on radiators in the H2, what kind of cost savings contribution, be it from productivity improvements, be it from restructuring, reorganizing, what can we expect here for the radiator side? Should we think about the seasonality pattern similar to as it was in 2025? Is there a structural change here in the adjusted EBIT performance? For the production side closure in Grenchen, the last radiator produced the H2 of 2025, we will have a positive impact. We still have some efficiency gains to be achieved on the French plant, and also the one-shift model. Now we have clearly less people than 12 months ago. That should also have a positive impact if you get the necessary volumes. Critical, again, are the volumes. If you have a good utilization of the plant, you can achieve a good margin. We continue to work on the cost side and get the factory full with volumes. Is it fair to say that the cost savings from restructuring and productivity improvements this year are going to be more around low to mid single digit rather than mid to high single? Even low? Low single digit, yeah. Okay. That's helpful. Thanks. Ladies and gentlemen, due to time, we have to close the Q&A session. I would now like to turn the conference back over to Matthias Huenerwadel for any closing remarks. I would like to thank everybody that took the time to dial in. Now I understand there might be further questions. We are available to answer further questions also offline. Feel free to approach us. Thank you very much, and I wish you a very nice summer or rest of the summer period. Bye-bye. Bye together. Ladies and gentlemen, the conference is now over. 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