Welcome. Welcome, everyone, to Continental's Capital Market Day 2025. Welcome to you joining online, but in particular, of course, also to the ones who made it here to sunny Frankfurt. We're excited to have you and to present you a very interesting day for Continental. We have a three-part event prepared for you. We will kick it off with a nice and crisp overview into the transition, the transformation of Continental. Obviously, the second part, also of high interest, will be the future AUMOVIO company with Philip von Hirschheydt and his team presenting their strategy. We will round up the day with a joint event where you can experience technology and meet management and exchange, ask all the questions you would like to. Strong lineup of speakers. You will meet the people who drive Continental, who make sure we deliver every day. If we look at what is ahead for today in terms of agenda, Niko Setzer, our CEO, will kick it off with his view on the transformation of Continental, where we are and what will happen next. Philip Nelles will provide an insight into ContiTech as an industrial pure play. On the tire side, Christian Kötz will follow up with his view on the transformation and the organization, together with Roland Welzbacher, who will take over as CFO starting October 1. Our current CEO, Olaf Schick, will wrap it up with his view on midterm targets and capital allocation. Of course, you will have the chance to ask Q&A as well. You will get insights on strategy, performance, opportunities. With that, it is the right time to hand over to Niko Setzer, who is driving the transformation with more precision and energy than arguably anyone else. Niko. Thank you, Max. Thank you. A warm welcome from my side to this Capital Markets Day. The last Capital Markets Day we had 18 months ago, so it was December 2023. This is as well my first chart. This was exactly the chart which we have shown there in order to explain where we are coming from and where we are heading to. This is important for today, and I will come to this at the end of the chart. First of all, you might all realize, and many of you know us already, since a long time, we had a long era of success from 2010 to 2018, where all our businesses were basically developing on the positive side, followed by an era of decline to 2020, where markets were hitting us hard. It was a very painful decline as well, or deterioration of our profitability, followed by the era of recalibration, where we set until December 2023 the foundation for the era which is starting right now. We turned many, many stones in that company, and we are coming and entering, and we clearly committed. We are going now into the era of execution 2024 plus. We hope very much that once you have finished this day, you really see we meant it that way. We really meant it in executing company-changing decisions on the one hand, and on the other hand, while working on the excellence of our businesses, improving it forward. The speed of our internal transformation is, and the need in particular, and the reason is increasing day by day. We have shown as well in December 2023 that the market is not giving tailwinds. That's why we said we very much focus on self-help. We have to help ourselves going forward. If the market performs, we don't mind. We are happy. However, we saw strength, technical transformation. Since December 2023, we can say the intensified competition, in particular on the automotive side, and Philip and team will show this in the afternoon, is getting more intense. New entrants coming in, which are questioning the status quo, means we have to adapt and we have to focus on what we can do best, our USPs, which we can offer to the market. Macroeconomic development still very difficult. Volatility is high. Visibility is low. We see further cost pressures. Our customers, they take affordable products into their buying consideration more and more, means for us there's increased demand on adjusting our cost structures. We have to work on cost. That is our homework, and even more than we have seen in December 2023. We come to this later. Global supply chains are getting stressed more and more. I do not have to mention geopolitical tensions, which we see on a daily basis, very unfortunately. We see new trade barriers coming in. This is affecting all markets. It is affecting all our businesses. However, it affects them very differently. That is why we need as well tailor-made, specific focused answers, focused answers per sector. Even within the sector, it depends on which region and which product is concerned. We need those answers in two dimensions. The one dimension is clearly strengthening the independence because we need individual answers. What we did 2024 plus, era of execution, spinoff of Automotive, sale of OSL, which we carved out already, or where we took the decision already a while ago. That's why we are relatively fast here. ContiTech group sector, which we announced on April 8, and optimizing management structures on the tire side. Christian and Roland will explain a bit more for tires, obviously. Once we perform all those transactions, tires will become a pure play and has to adjust and be ready for the standalone pure play to come. On the other side, operational improvement. I already mentioned the cost pressure, which we see in the market. We have to do our homework. We have to safeguard competitiveness, significance, restructuring on the automotive side. More has been even announced in the first quarter. Same for ContiTech. We turned around OSL. Dirk Leiss and team did a great job. Cash flow positive as well last year. However, as well on the industry side, we have to reduce complexity and further work wherever we can to adjust our costs. On tires, we have seen in the recent months and weeks already portfolio measures which have been taken, step out of certain business, optimizing the business in order to improve our operational effectiveness, and by that create more value. This safeguarding of competitiveness is as well seen in our results. If you compare where we are coming from in 2021, so this was the era of recalibration, let's put it that way. We have improved by 120 basis points our Adjusted EBIT margin, very much driven by automotive. Automotive was coming out of red territory, as we all know, 360 basis points. However, it shows that we have strongly improved and we have what we specifically see in the first quarter, where we have achieved as well an Adjusted EBIT margin of 6% coming from 2.1% in the year 2024. Honestly, the reference is a low one. Yes. However, you see we have stabilized. We have a more resilient business. Once we announced that we are pursuing and looking into the spin in August last year, we said we need a solid underlying margin on the automotive side. Last year, we have been already on a level of 2%. You saw that the first quarter was much stronger, and we reached as well a lower seasonality of this business, a weakness which we had in the years before. We can say after this first quarter, we are now ready to realize the potential of our, which is in our standalone businesses. As of today, we are a group with 3 + 1, as we say, three sectors, Automotive, Tires, and ContiTech. We will transform them with all the measures which we are implementing in the transaction into strong individual players. As mentioned, 3 + 1. The +1 is OSL, the automotive business of ContiTech, because this is not a sector itself. However, it is as well a business which we made standalone and where we clearly believe that it can perform standalone better than within the company. Highest priority is clearly the spin of auto for September this year. This is priority number one. At the same time, we are capable because we already started with the carve-out of OSL a bit earlier. Let's put it that way, that in parallel, we can execute as well the sale of OSL, making ContiTech an industry pure play, and finally leading them to a pure play Tires on the end. Let me make this clear. The spin is priority number one. Nothing should jeopardize the spin. This is where we have all hands on deck. However, what we can execute in parallel, we wisely do in order to act fast in the current environment. The spin-off Automotive will lead them to a listing in September 2025. What we are currently doing, we are ensuring the standalone readiness of Automotive on the organizational side. In particular, we are preparing the spin-off documentation, and we are optimizing still our operations in order to have Automotive then in September, sorry, a strong start as an independent company to lead by being top in tech. That's, by the way, the history we can say for the 3 + 1 for all our businesses since 1871. This is a technology-driven company, and this is the clear strength on the automotive side, transforming us in an even higher high-performance organization and delivering which you see this afternoon presented by Philip von Hirschheydt and the teams. Automotive is a EUR 20 billion business and a strong industry player. OSL is much smaller in the range of EUR 2 billion. However, in its business, it is a strong player in the competitive field. We see in it, Dirk Leiss and team, as I mentioned, turned it around a strong value proposition, which a new owner can further develop and can develop with more value creation going forward. The sales process, we said we are going starting the first quarter to the market, is fully on track. Very likely it will be a financial buyer, and we are confident that we conclude this still in the second half of 2025, which leads ContiTech, as mentioned, into a pure play. If you take out of the EUR 6.5 billion sales of ContiTech last year, you take out the EUR 1.92 billion, you get to a EUR 4.5 billion industry player, more than 80% industry business. It is a pure play. It is one of the largest industry players in the technical and thermoplastic rubber business. That is a strong asset, a strong asset which from a 6% EBIT margin, ContiTech realizes or has realized in 2024, getting to an 8% by excluding OSL already. We anticipate strong potential where ContiTech industry has been as well as a business in the past. We anticipate this strongly going forward, and in particular, once a new owner has the opportunity to focus even stronger on it. We have done a dedicated analysis. What is the best transaction form for ContiTech? We announced this on April 8th. Today we can say that we finished this concept phase, and we are confirming the initial assumption that a sale as a transaction is the most value-accretive option for ContiTech itself and as well for the remaining core for Continental. We see that both strategic and financial buyers or private equity have a strong interest, a comparably strong interest, because, as said, we see it as a strong asset. We have knowledge from the past that there are players out there which are really interested to develop this as an industry pure play further. We are confident step by step, but in 2026, that we can conclude such a transaction. You see from the transaction separation costs and tax effects, this is all included. It is a low triple-digit million EUR number that is comparably low. Why? Because ContiTech industry part is already fairly separated. OSL, as mentioned, the carve-out happened already earlier. Automotive is out, and there are very few overlaps with the tire side, which makes it then a relatively swift separation. Once the transaction for ContiTech is happening, then tires is getting the Continental AG. Some may say, and we see this in particular as well, journalists writing, "This is back to the roots." This is not correct. This company has been never a pure play tire company. We started in 1871. There were no tires. They were a technical rubber business where we started with all goods around it. This company has been always a mixed bag of different businesses. Later on, the automotive part were coming, which have been dealt with it at the same time. This is the first time that we can really, as Continental, fully focus on tires. Christian, Roland, and the whole team, they are really fired up to get into this journey, which is an exciting journey where they will prepare already today for and then going forward after the execution in 2026. What you can already be ensured, it's a strong, resilient tire champion, strong profitability over time, highly cash generative by best-in-class operational efficiency, which we have to always work on, customer-centric, strong brand. Particularly here you see as well top in tech, proven as well by the market products. If you see what trends are coming in the market, regulations which are coming and tech is needed in the future, we clearly believe that with the tire business, we are well positioned to tap into those new profit pools which are growing going forward. We see that in three to five years, the company will look different, and this will not, you heard me saying that ContiTech sales transaction is foreseen for 2026. This will not happen that way. We want to give you an idea, an indication as a potential, not as a target, because the company will not look like that in the next three to five years. What would be the potential in the next three to five? For that reason, you see ContiTech, we have excluded OSL. That is the EUR 4.5 billion. This would be after spin and after OSL sales process in the second half. We see the potential to outperform the market to a EUR 5 billion-EUR 6 billion sales. As said, this is just the 80%+ industry business. From the margin here, you see the 6.2%-8.1%, which is then ContiTech as an industry pure play to develop on 11%-13%, a margin where we've been in the past, as said, and Philip Nellis will present the measures and why are we confident that we can get there. On the tire side, you see where the CMD 2023, the market has not been as strong as we have assumed at that point of time. The midterm potential we see right now, EUR 14.5 billion-EUR 16 billion. If the market develops better, then we assume we are fine. We do not mind, but we have to make our homework and be sure. This still means, and this is true for ContiTech as well for Tires, that we outperform the underlying markets. We stick to the margin corridor, which we have announced on Tires, 13%-16%, because we see in the current environment, low visibility, very difficult to adjust 18 months later, that this is still the right guidance going forward. To wrap it up for everybody in this room as well as online, I hope you could see era of execution. We mean it like that. Company changing decisions, which we are executing. The team is fully fired up in order to do this, in order to master the transformation by creating three pure play champions and being invested in Continental means that you are part of the journey, which is an exciting one, which suggests after reaching stability that automotive has upwards potential going forward. ContiTech, a hidden champion for industry, as I mentioned, high value industrial asset. We see strong interest from the market and tires, first time in history as a resilient tire pure play. If we do everything right, which we have right now in our backpack, which we're working on, we are very convinced that this will lead into the next era of success, not in one group, but in 3 + 1 champions. With that, I hand over to Philip Nelles, explaining to you, as said, how ContiTech will develop. Thank you very much, Niko, and a very warm welcome from my side here to the Capital Market Day, Continental. Let me make a clear bold statement for the beginning to let you really know what is ContiTech. ContiTech stands for system critical rubber and thermoplastic solutions that connect, convey, and cover to keep our industrial customers' businesses running. That is the root and the core of what we do for more than 150 years. Back then, rubber was an exciting new material where we pioneered in many products and applications across different regions and markets in that field. Today, we have become a truly global company across all regions being present and growing. However, this complexity has risen over the past decades, and we have seen very recent dynamic changes in the global markets. We believe it's the right point of time, and I stand here to make sure you have an understanding in the next couple of minutes. What does it mean making out of ContiTech a rock-solid industrial pure play with a significant upside potential for creating more value and more profits? From a 2024 standpoint, taking the actuals and making sure you get a detail on what is ContiTech with OSL, the automotive component business and without. We're moving from a EUR 6.4 billion to a EUR 4.5 billion company with the 2% of EBIT improvement formally on paper. That is just the start of a journey for more upside potential with a strong cash flow and cash generation overall, but a significant, and that's what we promised as an ambition in the Capital Market Day back in 2023. We have been working diligently on it, making sure our ambition coming from a 45% industrial exposure to reach an industrial pure play with 80%. That is going to become reality once the sale of OSL will be executed in the second half of this year. We are going to execute that with a global qualified and experienced team of roughly 24,000 employees worldwide. From a business model point of view, with a very nicely spread regional balance of our sales in the three world regions, a truly global industrial player and with a solid business model channeling into the market with a 50% replacement aftermarket share, which we intend and see growth potential over time. Now, we are in business for more than 150 years. We know what we do, our teams globally. We have five product lines that are there. The Continental company has started based on technical rubber products, a horse buffer being one of the first products in the marketplace, making rubber a product and a revenue stream for Continental in the very early days. Since then, we have always been pioneering, providing to our customers innovation, innovative products, and new applications across connect, convey, and cover, and translating customer requirements and market requirements into recipes and making the material the common base of our approach and synergy inside Continental ContiTech. Till today, based on that position, we explore markets, take total conveyance with a leading position, transporting bulk material in many industries, namely mining or construction. We provide solutions based on a leadership position in global markets. We expand our service offerings and add engineering, add qualifications, add a service model, potentially leading into a pay-per-ton model and a full one-stop shop service provider for our customers worldwide, leading into further potential revenue streams. A second example where we intend to move forward is based on fluid handling systems. Fluid handling systems, hoses that work in many industries. For decades, our hoses compete and provide solutions with high temperatures, low temperatures, underwater, above water, tiny hoses, or hoses you could even almost walk through in many different industries and in very tough industrial environments. That is what we do. Here, as a proof point, enlarging and being in attractive markets, that is something we see as a clear potential in the near-term future, adding further products like hydraulic hoses. The proof point to mention here is our greenfield production ramping up and getting to SOP very soon in quarter three this year. Additionally, data center cooling hoses, also a new product line we are launching near-term to make sure we capture attractive market potential in the next months and quarters to come. This is nicely showing that we in ContiTech, as industrial pure play, cover very many interesting and very attractive end markets. You see here sizable, growing, and fragmented solution-driven markets where we are present in with our product lineup. Fluid solutions, hoses in many of the markets or across setting potential here, covering construction and home being present with applications around many of our products. Underlying, very important for us as a growth potential and outgrowing the market space for us important and traffic light marked here with a GDP plus potential as an underlying macro trend where we benefit and intend to benefit over the near-term future. Significant as markets inside ContiTech, covering 80% of our markets and our business share being the industrial pure play for industrial components. How have we come to that position and what is our go-to-market approach? Coming from a nice, broadly diversified customer base, not having a higher dependency in any region, nicely diversified. Our route to customers is mainly via engineered products with our brand and our reputation over decades from the first starts of first days of Continental via original equipment on the industrial side, intermediates as well, super nice cross-selling, cross-product selling opportunities, and project business in the end user market directly that delivers a potential flywheel supporting us utilizing the position in the original market, enabling the recurring aftermarket business that we intend taking already to a 50% share and even improving for further revenue and profit pools. We have defined our vision from strategic to execution to vision to become the first choice for material-driven solutions. Two major pathways will lead our way supporting not only on the growth side, but also on the operational excellence. Outgrowing size of the markets, we intend to increase our customer present penetration. That goes without saying with existing accounts that we serve for decades, being reputated with these customers, but also having a clear plan in place how to conquer and acquire and get awarded for new customer accounts. Intensifying market presence. We see nice opportunities and have a pathway described with activities for selected markets, improving our presence and exploring potential new profit pools. Expanding product and service offering coming from many leading positions via product and application and reputation. We intend to selectively expand on the base of offering service engineering around a full stop shop we offer for our customers, making sure uptime and operational costs for our customers are decisive and improved. On the operational excellence pathway number two, streamlining product variance and reducing cost, extremely important for us, good potential, making sure we execute on what we designed as our platform strategy, making sure we bundle and optimize the way we go to market and make sure we benefit from a stronger standardization and harmonization, focusing on the five products described recently. Simplify and standardize production landscape. We have been adjusting and reacting to market weaknesses in the industrial arena, announcing restructuring of our footprint and optimizing the footprint in total that we have, enabling a higher output per location and production plant, making sure we increase efficiency over time in our production landscape and consolidating supplier base while securing supply resilience in these days, extremely important. Based on our platform strategy here as well, the material side, we are enabling our teams to standardize, harmonize, and make sure we bundle and use scale effects. All of this leading to a midterm potential that we see coming again without OSL from a base of 8 percentage points on Adjusted EBIT over time to the midterm potential 11-13 percentage points based on volume, mix, and cost. Volume, of course, being supported. We expect industrial markets being on a lower base now recently, the last two and a half years to recover stepwise here and there. We adjusted our structures. Capacities are prepared to pick up volume in a short period of time, leading into a growth curve that potentially leads us to EUR 5 billion-EUR 6 billion. This would be a midpoint of 4% CAGR. Of course, with the strategy I described, we clearly intend to outperform the market, the GDP, GDP plus business model we are striving for. Mix, as said, bundling, harmonizing, streamlining product variance and the way we go to market, focusing on the five products. Last but not least, with significant cost efforts already taken, stabilizing in a weak market environment and lower volumes, our profitability year to date. Last year, we see additional improvements leading us to the 11%-13% double-digit profitability midterm potential. Clearly standing here on stage saying that there's an ambition that we internally intensively discuss and get prepared for, that a standalone ambition would even lead to a higher profitability and sales chance. This is something that we are preparing, making sure we are envisioning and executing that over the course of the next quarters. Putting it together, summarizing ContiTech, we are here making sure, creating and shaping a rock-solid industrial pure play with an upside potential. That means we are already and will expand on that global champion in system-critical rubber and thermoplastic solutions for industrial markets. We will utilize and expand leading market positions in highly attractive and sizable end markets. We are perfectly positioned and ready to turn our size, being probably the largest rubber and thermoplastic component developer and supplier of this world, and to outperform market growth. We are diversified and our revenue base is very resilient. That shows our history and we continue, including a significant growth potential on the aftermarket contribution. Last but not least, attractive margin. You have seen it with a strong upside potential. That is what ContiTech stands for. We intend to make sure to execute in the next months and quarters to come. Thank you very much. I hand over to Christian. Thank you, Philip, and a very, very warm welcome. Good morning also from our side. Our side, us, this means myself being in charge of all our global tire operations, but also from Roland Welzbacher, as said, he will jump in later on, who is the CFO of our group sector Tires today and will become the CFO of our group effective October 1. Let me start off with emphasizing that we really, as a global tire team, are also extremely excited about the transformation we are going through as a group. Why? Because simply we believe it's going to help us to even more focus on what matters to our business and even more focus on what we are passionate about, and that is tires, which should help us, which will help us to achieve our objective and our promise, which is to continue to outperform our industry in terms of value creation based on customer-centric solutions and services and operational excellence. Before we go there, before I explain what we are planning to do in order to achieve this promise and commitment and objective, obviously also worth a couple of minutes to take a look at who we are and where we stand. You've seen this chart before. Starting from the top left, we are a very strong global number four in the tire industry today. We believe we have very good opportunities to become a global number three within the foreseeable future. If you follow the industry, we have really closed in significantly over the last 10 years, and we will continue to focus on becoming one of the leading companies or tire companies in the world. Number two, we have proven our value creative performance and our value creation not only in terms of profitability, but even more so in terms of return on capital employed and cash generation. We will talk about this because we believe that this is really essential for a tire company to keep this in mind and focus on cash generation based on a very, very effective and efficient manufacturing footprint. Tire industry is a manufacturing industry, and if you are not super efficient in manufacturing, you are not going to outperform the industry in terms of financial performance. I will talk about this. If you take a look then at our, let me say, business distribution. Yes, we are a European-based company. We have a very, very strong foothold and foundation in what we call the EMEA region. On the positive side, it clearly already demonstrates and shows how big our growth potential is outside of Europe, in North America mainly, and APAC even more so. I will talk about this later on. To see, I mean, as usual for a tire company, we are much less dependent on the automotive industry, which is one of the reasons why we have this resilience and robustness in terms of our value creation performance, which we have demonstrated over so many years. We are very much focusing on the POT segment today. Nevertheless, we are and want to be a full portfolio supplier. If you want to be one of the globally leading tire manufacturers, I mean, you need to make sure that you are really active and engaged in all business segments where you can create, obviously, the value you are looking for. Again, you see pretty significant growth opportunities, especially in the specialty tire segment. In POT, then last but not least, being focused on POT, obviously even more focused in this segment on what we call the UHP segment, so the ultra high performance segment. I will talk about this later on because it's decisive for the profitability of a tire company and providing also significant growth opportunities moving forward. Number two, talked about the manufacturing footprint. We do believe we have a very, very effective and efficient footprint. You see the number of plants we're having in each region. You see how much of production in this region we realize today in what we call mega plants. I will talk about this later on because we are deeply convinced that these mega plants do provide significant advantages in terms of efficiency, but also in terms of flexibility. In the bottom, you see basically how much sales we generate of our total sales in each region. Number two, how much of the production globally we generate in each region. What we are trying to show here and what I believe is really the challenge in the industry is you need to find the right balance between, on the one side, being local, so producing where you want to sell in order to ensure customer proximity and supply chain performance, which gets more and more important. I will talk about this later on as well. On the other side, consolidating production in as few facilities as possible in low-cost countries in order to utilize and scale the efficiency effects. You have to find the right balance between the two. We are deeply convinced that we have a footprint which is really very, very efficient and effective in this sense and has provided, besides then technology, supply chain performance, and also our brand, the fact that we have again and again proven the resilience and robustness of our business in terms of value creation, which led to the fact that even within the last five years, and I guess you all agree, these last five years, thinking about Corona, thinking about chip crisis, thinking about the Ukrainian war, and the latest developments have not been easy. You could, I think, fairly call them challenging. We nevertheless, in each year, were able to reach profitabilities in our targeted corridor of 13%-16% and accumulated over this period of time, therefore generated more than EUR 10 billion of Adjusted EBIT and close to EUR 10 billion of free cash flow before interest and taxes, which shows somehow, obviously, number one, already the resilience and robustness of our business. Number two, where we are focusing on and where we will continue to focus on. Number three, obviously, why we are confident that we are also moving forward to be able to defend this value creation performance and outperform the industry in terms of our value creation. How do we want to do that? How do we want to ensure this? How do we want to fulfill this commitment? are three or four categories I would like to explain in a little bit more detail. One is enhanced mix. Second is drive operational excellence. Third is portfolio management. Niko has talked about this already. We will show you in a little bit more detail what exactly we are planning to do and why. Last but not least, shaping a lean and agile organization. The transformation, the change we are going through right now, obviously also provides significant opportunity for us to change the organization and make sure that from an organizational standpoint, we are ready to master the challenges in front of us. Let us dig now a little bit deeper into these individual categories and let us start with mix. Before we talk about the structure of the demand and the overall development, I would like to use the opportunity to take a quick look at the global POT markets and two main messages here. On the right-hand side, on the left-hand side, you see we continue to believe that we will only see very, very moderate growth moving forward. We have seen very moderate growth also only in the past. It's a very mature industry. It's not a growth industry. Nevertheless, it's very resilient and we plan for only very moderate growth also moving forward in terms of total demand. On the right-hand side, and you've seen this already in our charts earlier or in my chart earlier where you've seen the split of our sales by region. Yes, we have a very, very strong foundation in the EMEA region. If you would focus on Europe within EMEA only, you could imagine that our market share would be even significantly higher than that. It shows you the other way around as well, how big the growth potential for us in the Americas and APAC specifically is. We will continue to invest to make sure that we are really utilizing this, let me say, generic volume growth and growth opportunities. One level deeper, looking now into the demand, let me say, structure, even though markets are not growing or only moderately growing, they improve constantly in terms of, let me say, quality and mix. On the left-hand side, you see what we have done within the last five years in terms of developing our share of UHP business and non-UHP business of our total business. You see we have really significantly improved the share of our UHP business. This is great because obviously on the right-hand side, you see the anticipated market development, even though we only plan for 1.3% CAGR in terms of total demand. If you take a look at the structure of the demand, the UHP demand will continuously increase, will significantly increase, continue to increase. Why? Number one, because the OEMs continue to build bigger cars and using tires to upgrade their vehicles. We have seen the developments over the last decade, and there are so many cars in the pipeline and have been pushed into the market, which will further drive this mix. Number two, the electrification of the powertrain is further amplifying this trend because battery electric vehicle-driven cars simply need bigger tires for technical reasons, which I could explain. We are very, very confident that this market provides significant growth opportunity in terms of mix, not necessarily in terms of total volume, but definitely in terms of mix, which is, and I mean, we wanted to use this opportunity here also to make this clear, the profitability, and this is our profitability. Comparing now these different product segments, is it a 17 in, a 19 in, or a 22 in tire, profitabilities are significantly different. This is why mix is so decisive, and being able then to utilize this mix opportunity is of utmost importance to ensure value creation as a tire manufacturer. I will talk about what it takes in order to utilize this mix opportunity. Not only in POT, but also in truck, we do believe there is growth potential and also mix improvement potential. Same chart, left-hand side, overall market development, right-hand side, split by region, market, but also our market share. Starting on the left-hand side, also here we believe only moderate growth will take place. I mean, the CAGRs are a little bigger. It depends a little bit on where you start from. I mean, right now we start from a very low base. The truck tire markets are very much under pressure. So starting from that level, there's hopefully a stronger CAGR than on the POT side, but we probably will also continue to see higher volatility in this segment compared to the POT markets. On the right-hand side, you see that we are basically only focusing on Europe and the Americas and in the Americas mainly or North America. And we will continue to do that. Why? Because only there we do really see the chance to differentiate via technology, product, and other means to justify a premium price. At the end of the day, we obviously need to have a premium price position in order to achieve our profitability goals. In these markets, North America as well as in Europe, we have customers like these big commercial fleets being extremely professional, really looking for significantly more than just a high-quality product for a reasonable price. We do see the opportunity to really leverage our strong product technology with hardware and software services and retread or 360 service solutions in order to differentiate ourselves and by doing that ensure that we also really can justify a premium price. This is why we really focus on the truck side only on Europe and the Americas. I will talk about this on the portfolio side, why we've decided also to exit even more markets in Asia where we do not see this opportunity for differentiation. Second cluster, operational excellence. Also here, it's not just manufacturing excellence. It's not just excellence in operations or manufacturing operations, but it's also excellence in terms of customer services, which is basically supply chain, operational efficiency in our plants, but also R&D, operational excellence, operational excellence in R&D as well as in brand building. Let's start with what we call customer centricity because I believe that's one area which is of growing importance and which is partly really underestimated. It gives us today, I believe I'm deeply convinced, pretty much a competitive edge. Why? Complexity of the industry and of the business is continuously increasing. This leads to the fact that dealers, retailers are not willing to stock tires and not able to stock tires anymore because you have never the right tire on stock. They are more and more dependent on the availability of their vendor to supply at any time. That is why, besides investing into manufacturing excellence, investing into supply chain excellence is for us really a priority item. To make this a little bit more tangible, we have listed here a couple of facts and figures. Today, as we speak, in the meantime, close to 15,000 or 14,500, a little bit more different POT articles we sell globally, different articles just in the POT segment. In the meantime, more than 150,000 B2B customers direct. We supply on the replacement side, more than 150,000 B2B customers direct. We generate more or less or more than 90% of this business of our total sales by local sales teams in these markets taking care for these customers, supported by the necessary logistic infrastructure, which leads to the fact, and these are EMEA numbers then on the right-hand side, the rest are global numbers, that for 98% of all orders, we are able to supply the needed tire within 24 hours. This is what we believe is really essential also to safeguard your future success. We believe this is even of growing importance because this complexity, this article complexity, specifically in the UHP segment, has increased in the past and will continue to increase significantly moving forward. That is why we not only invest into manufacturing capacities and flexibility, but also significantly in our capability to distribute these products. We do because we do believe it's a competitive advantage. It adds costs, yes, but it makes you even less dispensable from a customer standpoint and even further improves the resilience and the robustness of your business. It is a kind of life insurance, and we will continue to invest into this. Second, manufacturing excellence. I talked about the fact that we need to find the right balance between being in the market for the market to ensure customer proximity and supply chain performance. I just talked about this. On the other side, consolidating production in as few production sites as possible to use the economies of scale and optimize efficiency. We will continue to do that. This is why, for example, and we just used this example because we have communicated this decision a couple of weeks ago, closing one of our non-mega plants in the Asian region in Alor Setar, Malaysia. By just looking at the figures, output per employee, comparing a standard plant, which is admittedly an old plant and really a small plant, compared to what we call a mega plant, and taking a look at the output per employee, taking a look at other characteristics, I think it clearly shows how much efficiency potential is in making sure that you really consolidate as much production in these mega facilities as you can without losing customer proximity and therefore supply chain performance. We will continue to do this, continue to invest also in line with what we have done in the past in order to maintain this competitiveness of our manufacturing footprint, which is already here today, comparing here now using a couple of efficiency KPIs, but also sustainability-related KPIs because they are really in manufacturing getting more and more important. How much energy you consume, how much water you consume, how much waste you generate is not just a cost factor, but more and more also a regulatory requirement. Making sure that we really keep efficient, competitive in this field of manufacturing or in the core field of manufacturing is for us one of the top priority items. We have a very efficient, effective footprint, and we are more than committed to defend this versus these are our top five, the average of our top five competitors, where we do believe we have a competitive advantage today, and we will make absolutely sure that we maintain this. Last but not least, cluster on the operational excellence side, R&D excellence or excellence in R&D, and then brand building. I mean, I'm a born or raised tire engineer, so I would love to talk about more technical details, but this would lead us probably nowhere. I think, and I hope you agree, we have proven over so many, let me say now, decades, either via press test results for all kinds of product segments and all kinds of markets or via our ability to achieve OE approvals in all regions on all customers in all product segments that we definitely have this product capability, the technical competence, which we will continue to defend. Last but not least, brand building. I mean, the brand is a very, very key asset of our success and a very necessary precondition to achieve also the premium price positioning. We are seen as one of the top three valuable tire brands in the world, and this is obviously partly based on our technical competence, our technical success, our OE presence, the quality of our products over so many years, but also supported by the necessary marketing investments. We will continue to make sure that we develop and build this brand focus outside of Europe because in most of the European markets, we have the awareness, we have the brand identity we need. We have still some opportunities to further grow in other places of the world. Talking now again about the mix opportunity, the chance to really improve sales, but also profitability by driving mix is not just a question of having one capability. I do believe, we do believe, we are deeply convinced the secret sauce is to have all of these ingredients. This means having the technology competence, so having the technology, the capabilities combined with the necessary brand, combined with a super efficient manufacturing footprint and the supply chain performance. I tried to explain why this is so decisive in an organization which is close to the customers in order to really utilize this mix improvement potential. We believe we are well prepared to harvest those opportunities. Number two, we are also deeply convinced that it is very difficult for newcomers, let me say, and challengers to copy these individual elements because it is significantly more than just the technical capability or cost efficiency. It is the total portfolio and potpourri of things you have to be able to provide in order to be able to harvest those fruits and those opportunities. Mix operational excellence, third category, active portfolio management. I mean, we have done this in the past. We will continue to do this. Within the last couple of months, we have, let me say, amplified or accelerated our efforts in this sense in order to make sure that we really focus on where we generate the margins we are looking for and really concentrate on the elements where we can really create the value according to our expectations. We will, I mean, not just investing like on the UHP side, like in technology, like in distribution, but also exiting is part of our, then let me say, business equation. There are three main focus points we are focusing on and where we will continue to look at. Number one on the manufacturing side, making sure that we really further optimize our footprint, our manufacturing footprint in this target conflict of capacity utilization versus customer proximity versus mega plants and having as few plants as possible to scale the efficiencies. This is why we have decided to close, which is executed, Aaron, in the past. This is why we have stopped now producing truck tires in India just a couple of weeks ago because we simply do not see the chance to reach our profitability targets. This is why we will close Alor Setar, our production facility in Malaysia, by the end of the year in order to make sure that we really continuously optimize this balance and make sure that we really have the operational excellence we need and we are looking for. This will obviously not necessarily negatively impact our sales, but should improve the return on sales and should definitely further improve our return on capital employed. Second category, which is very much a European chapter, let me say, as probably most of you know, we are running our own or controlled retail outlets in mainly all of our European countries, which is a very asset-intense operation, owning those shops, renting those shops. We are really trying now since quite a while to make sure that we only hold, let me say, a footprint on the retail side, which is really essential to safeguard our business and either franchise operations or even close those operations where we do not find then a franchisee in order to find the right balance between the employed capital via high asset intensity and the returns we are generating. We have done significant measures, more measures to come. These activities will negatively impact our sales because we are exiting or we are canceling also certain non-core businesses, but will help us again to improve our return on sales and also our return on capital employed. The last category is we will continue to review our portfolio for business fields, segments, approaches where we either lack scale and based on that do not really see the chance to reach our profitability targets in the foreseeable future. The latest example here is that we've announced to exit the agricultural business again because here we simply lack scale. Based on this not existing scale, which would take forever to organically build it, we do not see really the opportunity to reach the profitability targets we are looking for. Category number four, the lean and agile organization. As said earlier, obviously the transformation is challenging, but it also provides a huge opportunity. The opportunity is to make sure that we now really shape and design the organization, which is, number one, focusing on consumer business. Truly building a corporate culture and an organizational setup which focuses on what matters for us the most, which is not the OE business, which is the consumer business. Second, ensuring a tailor-made governance. I think we've talked about this in various individual discussions. It's a subject which is of growing importance. The regulatory requirements are ever increasing. The more you're able to efficiently and effectively address all of those regulatory requirements, the more competitive you are within your individual competitive space. The less complex your business operations are, the more you are able, I think, to make sure that you have really tailor-made, efficient, and effective governance models. We definitely are and will use this opportunity to ensure and utilize this chance. Last but not least, it should make us definitely a faster and more agile organization once again within the volatility we are all facing. I guess you all agree, a decisive factor not only today, but even more so in the future. We do believe as the global tire team, number one, we have the expertise and the know-how based on all these decades of experience in the tire industry on board, but at the same time also the diversity in order to manage those challenges ahead of us. I think Niko said this in the beginning. We are working on the final structures right now, how this organization will be set up, who is taking which type of responsibilities, how do we organize also P&L responsibilities under the global view. It is too early now to present and also too early to just or to quantify the impacts. That is definitely the other area we are very, very strongly working on in order to prepare and get ready for standalone readiness and operations. To wrap up my part, I want to use this opportunity to really express this very, very clearly. We are very much aware that the tire industry is not a growth industry. You have seen very mature demand increases, very moderate growth rates, which is not a problem as long as you really manage the business for that. That is why we are deeply committed to manage this business for value and not for growth. We do believe this provides then the value creation and the cash flow creation, which is needed as a, let me say, basis for attractive shareholder returns, which we will focus on. What this means then in terms of quantified targets and a quantified outlook, I would ask Roland to take over. Thank you for your attention. Yeah, hello everyone, and thank you, Christian, for the nice bridge into the financial outlook. While we are very confident about our long-term financials, we are currently facing some challenges and uncertainties with regard to the impact of trade policies and related market dynamics. We continue to expect our sales 2025 to be within a range of EUR 13.5 billion-EUR 14.5 billion. However, due to the currently applied significant tariffs on tires and raw material imports, as well as continuing efforts headwinds, we need to revise our guidance for year-end 2025 Adjusted EBIT margin towards a range of 12.5%-14%. Assuming the situation is going to stay as it is, we expect to see the full net effect going into the bottom line. However, at the same time, we believe we still have opportunities to come out above prior year in case of a more favorable economic framework in Q3 and Q4. Due to the ongoing high volatility, and you probably agree with me, low visibility, we believe a wider range is currently properly reflecting the circumstances. Midterm, we want to grow our sales from currently EUR 14 billion into a range of EUR 14.5 billion-EUR 16 billion. The consequent execution of our strategy roadmap, as laid out by Christian, gives us the confidence with regard to meeting our margin targets. How are we going to do this? Number one, we will enhance the focus on the most value-accretive market segments, being more selective on the business we keep, being more selective on the business we take on, and reallocate our resources accordingly. Number two, we will focus and clearly clean and continue cleaning our portfolio from non-performing and non-core businesses, and we will also further adjust the footprint of our operations. While this is limiting our top-line growth opportunities to some extent, ballpark up to EUR 1 billion in the course of the next two years, it will deliver a substantial contribution to our margin improvement. We expect to grow our volumes in line with the markets. You've seen that on the chart, that's between 1% and 1.5% every year, while we also continue to expect attractive price mix gains in sales terms of approximately 2% and above every year. All of this is meant to bring us closer to an ROS level of 15%-16% midterm, but as for the time being, we decided to keep the corridor of 13%-16% in order to take into account potential adverse effects if negative trade policy implications would continue over a longer period of time. The spin-off of AUMOVIO and the sale of ContiTech will require cost management on our part to effectively address dis-synergies coming with the breakup. On the other hand, it will also provide us with opportunities coming with Tires being a standalone and pure-play company with regard to capital allocation and more independence from OE industry dynamics. We have proven over and over again that we can change and adapt quickly to new circumstances and remain financially resilient also in difficult times. This gives us the confidence that we'll not only be able to improve profitability going forward, but also to maintain a high level of asset efficiency with ROCEs above 25% and cash generation well above 60%. How? By steering our resources towards strategic profit pools on the one hand, and as said before, by consequently executing our strategy and our portfolio management roadmap. We are committed, I'm personally committed that Continental Tires stays industry benchmark for value creation going forward. With this, let me han d over to Olaf Schick for further details at group level. Thank you very much. Yeah, thank you very much, Roland. Great to see you all. I would like to sum it up briefly from an overall finance perspective. I would like to start with our view on the second quarter. Let's start with the current performance. We are continuing in the second quarter the very solid performance of the first quarter despite volatile times, despite trade disruptions. Let's start with Automotive. Automotive sales is impacted by FX. That is clear. There is no tailwind. Profitability level of AUMOVIO in the second quarter is clearly above the profitability level of the first quarter and above Q2 2024. That is driven by progress on fixed cost measures. AUMOVIO is very successful in cost measures, in particular reducing the headcount while improving and optimizing processes. Positive effects from sustainable pricing and headwind from tariff impacts are limited due to high USMCA share and mitigation measures are ongoing, in particular negotiations with our customers. You will see this afternoon the AUMOVIO presentation. You will see a great management team. You will see their focus on technologies and a clear path to increased profitability and sustainable cash flow. ContiTech, we see in the second quarter improvements in certain industries, but it is also clear that top line remains under pressure or is under pressure and also driven by on-cost measures, on-portfolio measures. Some of them were announced earlier this year. That is very intensive and ongoing. Tires' second quarter is impacted by FX on the one hand and tariffs. This was mentioned already. Tariffs, what are the tariff mitigation measures by tires? Rework the supply chain, focus on producing more premium tires in the U.S., max out capacities, negotiations on the OE side, and also in general pricing measures. As it was mentioned, these mitigation measures will start to kick in from now on. On a positive note, also solid development of winter tires, the sale in and the headwind from raw material costs are starting to ease. Now, let's look again as a summary on our adapted full year 2025 guidance. It is very important. This now includes current FX levels, and it includes tariffs as far as they're effective today. In particular, the 25% on top tariffs for tires that we are importing from Europe to the U.S. Here you see now ContiTech, and this is important for year 2025. This is including OSL. Niko mentioned we plan to execute the sale transaction of OSL within 2025, but here we still include OSL. We have an adjusted, I mentioned the top-line pressure for ContiTech, an adjusted sales corridor of EUR 6 billion-EUR 6.5 billion. We are confirming the Adjusted EBIT margin corridor of 6%-7%. Tires, it was mentioned by Roland, the sales corridor of EUR 13.5 billion-EUR 14.5 billion is confirmed, and now the Adjusted EBIT margin corridor of 12.5%-14%. Everything that Roland said with regard to that corridor and where we stand, I fully confirm. That brings us on a group level, sales EUR 19.5 billion-EUR 21 billion and an Adjusted EBIT margin corridor of 10%-11%. We are confirming our adjusted free cash flow corridor of EUR 600 million-EUR 1 billion. We all know this is a transitional year. We do have impacts driven by the spin-off, by restructuring, and certain tax effects, but we are confirming the free cash flow corridor. Midterm, there is outstanding potential. You saw the presentations by Philip and by Christian. There is outstanding potential for both tires and ContiTech. The tires sales corridor midterm EUR 14.5 billion-EUR 16 billion was explained. This is driven by active portfolio measures on the one hand and then lowered legal expectations. On the other hand, we are confirming the 13%-16% Adjusted EBIT margin corridor, and this is including standalone costs. That's also Tires pure play midterm ContiTech. Now, the sales corridor excluding OSL, obviously because this is midterm, EUR 5 billion-EUR 6 billion, and then clear commitment to reach double-digit margins midterm 11%-13%, as explained by Philip, driven by volume mix and cost. We are committed to ensure effective capital allocation to generate value. On the one hand, financing operations. It was very impressive what you saw in the presentation, right? How important that is. Manufacturing excellence, investments into the footprint mix, supply chain optimization, the whole product for your portfolio to ensure that we also in the future will have a test-winning product portfolio and the best products for our customers. Portfolio management, Christian mentioned the measures on the divestment side, also active M&A. We are not excluding, but we all know value-accretive portfolio enhancement are not that easy to find. I would say it's less in focus. Of course, constantly improve the balance sheet structure driven by operational performance. We have a very strong focus on shareholder returns. When we look at shareholder returns, I would like to explain it in different phases how we see it. Phase number one is the automotive spin-off. Our shareholders will benefit from the AUMOVIO listing with a very strong balance sheet. There is no balance sheet of competitors out there that is as strong as AUMOVIO's. Why? AUMOVIO will be debt-free, excluding lease and allocated pension obligations, and we will provide AUMOVIO with a net cash position of EUR 1.5 billion. It is important to us that the listing will be successful, and it will be successful, and that the future of AUMOVIO will be successful. That leaves Continental with an expected leverage ratio of around 2, net indebtedness divided by reported EBITDA, and again, focus to deliver via operational performance. We know the Tires and ContiTech business is margin strong and cash strong. The next phase is then the ContiTech sales transaction. Niko mentioned we want to execute that transaction in the year 2026. The proceeds of the sale will be used on the one hand to deliver, and then will also be used for special dividend or share buybacks. Further details we will announce later. This is too early. The midterm potential as Tires pure play, leverage ratio, the target is equal or below 1, equity ratio above 30%, credit rating target BBB +. Within the dividend payout ratio corridor that we have announced earlier, and we are confirming today the 40%-60%, we see higher dividends within the existing corridor, and we also see further potential for share buybacks. This transformation that we are all explaining and showing to you today of Continental is significant. We are doing this with speed, with focus, with discipline, and diligence. That means absolute focus on cost optimization while we transform Continental. That also means state-of-the-art governance, and state-of-the-art governance means tailor-made governance for every phase in which we are in, including risk management, including internal control system and compliance. We have our values. The values of Continental are very present and very important to us. They are framed by integrity. We will roll out a new code of conduct for Continental within the next days. Also, that is important in these volatile times. We will ensure effective financial and non-financial reporting as well. We confirm our commitment to our sustainability targets. To sum it up, you have here an energized management team and a full dedication to our transformation roadmap, not only by the team here presenting, but by the whole leadership team of Continental. We have a very strong focus on improving our balance sheet structure, focus on shareholder returns as we showed in the different phases. I think the pure play opportunities that were teased today, that's just the beginning. That's very exciting what's about to come. Overall, this is positive momentum what we are having here, what we are driving forward. With that, I would like to conclude and say thank you. I think you've seen it's quite a profound transformation that we are undertaking at Continental, and I think it is happening at quite an unparalleled speed. It's a lot going on in parallel. I think with the speed that we're showing in the transformation, it's also just right to keep the presentation nice and crisp and to allocate more time for you guys to ask your question. That's exactly what we'll do now. It will only be possible to ask the question here on site, so we will not have an online question opportunity. For those of you who are on site and want to ask a question, we will have handheld microphones. If you want to ask a question, just raise your hand and indicate that you want to ask a question. The team will then come to you. With that, we are, I think, good to go. Gentlemen, if you would now join me on stage so that we have your questions, please. I think by far the earliest one was Thomas Besson if we want to start here at the beginning. It does not matter. Thomas Besson was number one. Yeah. Thank you very much for taking my questions. I have two, please. First question on the midterm revenue targets. You're now targeting revenues for 2027, 2029 that are 10%-15% below what you were targeting in 2023 for 2027. Can you help us bridge these revenue targets? I think you've mentioned the EUR 1 billion of possible lost revenues on cleaning up the portfolio on the tire side. I guess currencies, maybe the client mix has played a negative role, but we are losing a substantial amount of revenues versus the past. That would be great to understand exactly what's going on. The second question would be on what you would intend to do on M&A. I think last time around, you had said that the tire business would eventually be willing to be a consolidator. Now you're exiting the ag tire business. You still have a specialty business. Could you elaborate on what Conti would eventually like to do, whether it implies acquiring small companies or going more into some segments that you're not necessarily present or get greater exposure, for instance, to Asia where you're a bit shorter? Thank you. All right. I think I will take the first one. Not surprisingly, but Thomas, if you look where we based 2023 on our sales on and where we are currently in our guidance 2025, you see that most of the sales reduction already applied in those two years because the two years came very different than we anticipated in December 2023. So two-thirds of the reduction, which you mentioned, basically realized in the past. If you take the baseline from today, 2024, and extrapolate then the three to five years, you get a CAGR, which is relatively similar, in particular on the ContiTech industrial side. Don't forget that you have to exclude OSL. And definitely, the automotive technical rubber business has not developed same as AUMOVIO in the market like we predicted. So we guided now or our potential, which we've shown was without OSL. And there you still have a CAGR of about 4%. If you do the math, in the past, it was a similar CAGR, still outperforming GDP plus what Philip said. So there is not a big difference. The biggest difference is that as well from 2023 to right now, the industry markets and as well us, we have not developed in the same. And on the tire side, it's very much the same last two years, and the baseline we have not moved in the direction that we have seen plus what Roland mentioned. So I would say from 2023, we have seen more a growth rate of 3% CAGR. This is now on the 2% CAGR point, and this 1% which is missing was basically close to what we see in portfolio, but as well the markets right now. In the visibility where we're at now, you might say we take a cautious approach. We might say it's realistic because if it comes better, as I mentioned at the beginning, we don't mind to have tailwinds. Currently, the last 24 months and the 18 months have taught us, don't expect tailwinds. Do your homework, and it's not the sales focus, which of course we are fighting every day, and we want to perform our sales, but we have to owe ourselves help is still what we want to teach as well our organization. We have to be fully competitive and then grab the opportunities we share in the market. I hope this explains that. M&A, that's your question. No, I mean, just to add then as well, and I think that was we tried to make this clear. We will definitely focus on value and not on volume. We will continue to make sure that we secure bottom line and value creation and not top line is a priority item in an industry which is not a growth industry. If we have more opportunity than what we think the market will provide, then definitely we will not shy away, but focus is and priority is clear. M&A, I mean, I would say number one, I think it's clear when you see the roadmap Olaf has shown. If we would have executed all of these steps, we would end up or we will end up as a very robust and extremely healthy tire company, also from a balance sheet standpoint, who would have all financial means and all cash flow generation performance to also consider M&A. We have done this in the past. We will continue to do this. It is a question of opportunities, and they need to be on the one side content-wise attractive and do make sense. From a content, the direction is not changing, so it needs to be complementary. It should either help us to accelerate our growth in Asia. That would be one element, or to close, let me say, product portfolio holes which we are having. You have seen our split of the different product segments where it's very obvious where we are lacking in terms of or versus where we are strong. On the other side, it needs to make financial sense. If you take a look at what has happened on the M&A side and acquisitions in the tire industry over the last, what is it now, five, six, seven years, number one, not a lot of acquisitions or transactions which took place. The ones who took place have taken place maybe for conditions which are a little difficult to justify, to say the least, from a financial standpoint. I think Thomas did it perfectly fine already. It would be great if you could limit yourself to two questions. I think I forgot to say that. José, you're the next one. Thank you. I'll stick to two questions, José from J.P. Morgan. I wanted to come back to the profit bridge on Tires and just give us a bit of sense of the restructuring charges you are embedding in your forecast for discontinuation of the businesses or also increasing the utilization of the plants. The second question, just coming back to Asia growth and the potential you have to maybe grow in China as well, how are you set up in China and how do you see the business evolving in the next years? Do you want to? No, I can. I can. I mean, on the one side, let me say on the profit bridge, so the costs which we believe we will need to accept, so to speak, to do the necessary portfolio measures, and the majority of the case is relatively limited. Alor Setar or now Modipuram, number one, these are not huge facilities. It's not like closing in Aachen or something like this. Number two, it's also in places where simply the cost consequences are much more, let me say, controllable and limited compared to some other locations. Second part, then Asia setup in China. We are really self-sufficient in China. We produce 95% or more than 95% of what we sell in China in China. We also only use basically to 95% or more our facility in China for local sales. We are neither importing significantly nor exporting significantly from China. We do believe that this is the right setup because it's a very margin-attractive business opportunity. I mean, more and more also from a regulatory standpoint, yeah, guided by limitations of what you're able to utilize your assets for. This is why we continue to invest into our facility, which is Hefei in China, in line with our sales growth. We've just initiated or are in process of executing the last extension phase. You've seen the Hefei picture. This is now an 18 million tire per year PLT tire per year factory, and we will continue to grow this or maybe other locations dependent on how we will succeed in terms of sales growth. I think one important addition to make is that if you look at bridge for the restructuring, obviously this will be adjusted for. This will not directly impact on how we guide in terms of EBIT, just to add on that. You will not see it on the way what we see on the top line, but obviously. The cash impact was covered by the guidance. The cash impact isn't. Correct. Yeah. That's significant that it changes the overall view. I think it's sorry. Okay. Yeah. Hi, it's Harry Martin from Bernstein. A couple of questions on the tire business, please. The first one, a metric that Continental once reported was capacity utilization. I appreciate the announcements of a couple of small closures, but if I look back over the last five years, six years, there's been a lot of large mega plant capacity additions in a period when volumes in the business have been coming down. How do you think about capacity utilization in the portfolio at the moment? Is it a key metric that you track? How do you see that developing? Is there some more rationalization that's needed within the portfolio to come? Or are you expecting a volume recovery means that you're about the right size for today? I also just wanted to ask about the retail footprint rationalization in Europe. Roughly what proportion of the current sales within the tire business is that retail business? Where would you expect that to go after the portfolio rationalization is complete? How much margin upside can that deliver on its own? Okay. I mean, number one, capacity utilization. I said this in the charts, and that remains true. The tire industry is a very asset-intense industry. If you do not run your facilities on a high utilization rate, you are losing significant efficiencies. You have to make sure that you really utilize your capacities. On the PLT side, I am very okay with the current situation, to be honest. We utilize our capacities in the corridor we are looking for. We don't want to be 100%, because then you miss opportunities, you want to have a certain level of flexibility. Let's say you should be at least in the 90%-95% capacity utilization. With the measures we've announced, also now the closure of Alor Setar, we are perfectly in line. On the truck side, situation is a little different. Truck markets are very weak as we speak. I mean, I mentioned this also looking at the CAGR. You have seen also that some of our competitors have announced some pretty significant restructuring measures on the truck tire production side. I mean, we are exiting truck tire production in Modipuram, so in India, which is not really relevant from a volume standpoint. There we do not run currently at the utilization rates we would need. We do believe that markets will recover from the very low levels we are seeing today and getting back into the utilization we are looking for. Justin, maybe add one part because you specifically referred to volume and volume was added. Maybe you can refer to mix development in the past. Yeah. I mean, what you see is I talked about the mix and I talked about the complexity. What you can clearly see if you take a look at our total output, number one, measured in number of tires, but on the other side, measured in tonnage. You see this really going more and more apart. Even though you do not increase your output necessarily in the number of tires, you increase your output pretty significantly in terms of tonnage simply because you are producing and selling significantly bigger tires. That's what we need to obviously also have to adjust to. I mean, producing then these 15,000 articles in our 20 plants, the complexity per plant, and we are producing many tires in various plants at the same time in order to secure and maximize supply, you can easily imagine that the volume per article is constantly going down, which is not necessarily helping to improve output out of the same machinery. That's also, let me say, a compensating factor to still ensure capacity utilization. Rationalization in Europe, how much of our total business we are doing via our own retail operations and how significant is this moving forward. On the PLT side, the part here in Europe is significantly below 10%, and it's deteriorating year-over-year. We more and more focus our retail network on supporting rather the truck business. I talked about the fleets. I talked about the fact that these highly professionalized fleets are looking for more than just a reasonably priced and high-quality tire. They look for total cost of ownership. They need services. They need breakdown services. We are really trying to target our network and cater it to specifically support this need. You can do this with a much smaller footprint compared to the higher portfolio footprint we traditionally had. In PLT, it is really significantly below the 10% and will further reduce without impacting our total business. On the truck side, it remains important. It is a question of how do you provide what you need with the least amount of assets and costs. If I saw it correctly, then we have Horst next, and afterwards, Christoph, please. Yeah. Thank you. My first question is on the overhead costs. So when we had our, when you had the last CMD in December 2023, you were still talking about an integrated automotive company. Now we are talking basically about the group which gets more or less split up. What is the impact of the overhead costs and how you aim to compensate that? Because your targets have not really changed in terms of margin. The second question that I have relates to the future debt targets, leverage targets. All of you said that you said share backs or special dividends, not end. I do not know. What is the debt target that you have in mind for the future Continental? Yeah, that would be useful. The last question, sorry, I have to start. It was a pretty hard. It was a very small one to Christian. Did I get it right that for tires, the free cash flow conversion rate is something like 90%-95% of Adjusted EBIT when I look back to the last five years? Is that something we can use also for the future? Okay. Okay. Do we start? I will start, Horst. First of all, we have already in the past year started to push down central functions to the three sectors. That is maybe the first message. Second, what we see as holding costs currently is a low three-digit million EUR number and low three-digit, yeah, sorry. That is what we see. That means also certain dyssynergies at the same time. I think this also came clear by the presentations that the sectors are really working on limiting these dyssynergies and actually looking for synergies. There is potential out there to compensate that. In our corridor that we showed, the standalone costs are included. So that are already included. Yeah. In general, I mean, it goes without saying that we constantly review and challenge overhead costs while ensuring an adequate governance, as we also showed. Share buybacks and/or special dividend. On the chart, I showed the different phases. The phase ContiTech Sale, we said we will use it partly to delever, partly as a special shareholder return. You could say special dividend and/or share buyback because we have not defined it yet, right? We look at it from a regulatory, from a tax impact, from an investor preference perspective. We look at it, and then we take a decision. The third phase, that is then tires pure play, where we then see within the existing corridor higher dividends and also there. That's after second phase, we see further potential for share buybacks if there's money left. Look, today, I would say the leverage ratio that we target is equal or below one. Yeah, that was the other part. Yeah, that's what he has shown. Free cash flow conversion, I mean, we can do it. I mean, you have seen very high numbers over the last five years, just taking a look at the Adjusted EBIT and then also the free cash flow performance before interest and taxes. You get to this figure. I mean, that's not a standard 95% because it also very much depends on our raw material costs going up or are they going down. In times when they go up, you simply lock more capital into your working capital because we have relatively high working capital in order to supply or ensure the supply chain performance I talked about. At the end of the day, a figure, let's say, 75%-80% should be in the average, still the target and very much achievable. I think very important to keep in mind that the figure that we've shown there is really pre-interest and tax. Of course. It is an operational cash contribution of the tires business. If you're a profitable business, obviously, you have to pay. You have to pay taxes. Just keep that in mind to moderate expectations a bit. Christoph. Thank you. Two on tires, please. The first one will be if we ignore the M&A opportunity in Asia and think about organic opportunities there. Is this largely a function of the market moving more towards ultra-high performance tires and you being present there with more limited competition versus the lower end? You are simply outgrowing the market and with that growing market share. Would you also target to grow in, say, non-ultra-high performance just to have a broad coverage of the market? The second question will be on the chart that you've shown and the Absolute EBIT per tire. Is this something that we should expect to be flat from basically today towards the midterm, or is this moving up, say, an inch every two or three years in the future? Thank you. I mean, first question, if I get it right. I mean, in Asia, it's really a combination of two. It's gaining general market share. We have underrepresented market share in Asia, and we do have opportunities to grow our market share without specifically focusing on UHP only. We will invest accordingly. I talked about Hefei. We are just doubling the capacity in Rayong, Thailand, as we speak. This is all in line with our sales development. Nevertheless, globally, and this is also true for Asia, we focus very much on UHP, and there are significant UHP opportunities also in Asia. A good example here now is India. I talked about the fact that we decided to stop producing truck tires in India, but at the same time, we increase and extend our PLT production in India, purely focusing on UHP or mainly focusing on UHP tires because also in these developing markets, yes, the share of these types of tires of the total market is relatively small, but in absolute terms, in a country like India, it's still very, very relevant and with the price level because these are protected markets. India is, for example, shielded by import duties. Producing UHP tires, even if it is small volume in India, is a very profitable business opportunity for us. I would say really both generic market share gains because we have opportunity with a very specific UHP focus, and country by country, it's a little different. Is this answering your question? Okay. The second part, absolute EBIT per tire, I mean, we have to say that also what is a UHP tire is constantly sliding. If you go back five years or let me say 10 years, a 17 in tire was a UHP tire. When we now talk about UHP tires, we talk about 18 in and above. A 17 in tire becomes a standard tire. Also, profitability in the segment starts to erode once it becomes more a standard commodity type of segment. The profitability on an 18 in tire today, it's probably not the same in five years from now, but we add on new categories on top, and this window is constantly, let me say, moving, but it erodes to a certain extent on the bottom side, and it improves at the same time as on the increasing top end side. It's not really a that's the problem also a little bit with this UHP definition. It's not really a constant definition because also the market is developing and evolving. With the complexity you mentioned, it will widen even more with the best coming in more articles. Yes. I mean, one is the size. One is the mixed opportunity because of sizes. One is just simply because of also very unique specific articles. The best do require even more specific article sizes we've never seen before, very low volumes. If you are there able to gain OE approvals and ensure supply, there is mixed opportunity because competition, supply and demand is simply a different one than on a 205, 50, 516, where everyone has tons of tires available. Ten years ago, when 17 in to 1 in had moved up in ten years. Yes. I know. In 17 in, you had 225, 45, 17. This was 80% of the market, maybe one size. If you look today in 19 in, you cannot count how many sizes. I mean, the complexity is varying. That makes the pool and the tapping pool more complex and even wider. Correct. Yep. I think next is Stephane, and then we have Monica. Hello, Stephane Benhamou from BNP Paribas Exane. I got two questions. The first one is regarding the channel mix. Loyalty brand seems to be higher for premium tires. Does it mean that for you, there will be a strong emphasis on the OE channel in the short term to secure more market share gains over the midterm in the replacement market? Therefore, this could be potentially not a headwind, but a smaller contribution in terms of EBIT margin. My second question is regarding the phasing of the plan. Do you plan to have a kind of gradual improvement over the midterm, or is it a more back-end-loaded plan? Thank you. I mean, no, let me work on that one, I would say. Hold on. Can I do that here? The second part. No, that is a good point. Second part. I mean, on the channel mix side, yes, the brand loyalty is more on the premium side than on the quality side or budget side of the brand portfolio. Does this mean we will need to focus even more on OEMs in order to increase or to penetrate, let me say, then the premium market even more? Not necessarily. It is also here that clearly, number one, the question of mix. Also, the loyalty is very different dependent on which cars you are on or which models and in which markets. It is not really one size fits all. We need to become and are very selective in making sure that we try to be on the right vehicles. This is why we also more and more merge the OE and replacement responsibility from a business standpoint because you need to really penetrate the market in a more holistic combined way to really utilize these mix and, let me say, pull potentials in the midterm. I do not think, do not expect that now we get a certain burden of our results because we have to, for a certain period of time, focus more than what we are used to do on OE. I mean, we have always been strong in OE. We have a tradition of being very traditional. Maybe you can focus on EVs as well, electric vehicles. No, I mean, we are obviously, that's part of the mix. It's not just the brand. And then obviously also the models. The higher-end, the models, you try to be now even more on EVs instead of maybe combustions, those type of things, and then also dependent on the markets. We have always been strong. We are nicely represented in all areas. By the way, I've not talked about this. Also significantly active with the Chinese OEMs. We are basically supplying every Chinese electric or relevant OEM on the electric vehicle side. We are supporting very much also their export volumes, which should also help us to get these secondary replacement effects out of these OEMs or these new OEMs as well. Phasing plan, I think that was more the question of. Back-end-loaded from the. Will the portfolio measures kick in late in the plan or early? Let me add one more element to what you just said, Christian. I think it's not so much relevant what the share in EV vehicles actually is. It's more relevant what kind of size is fitted on the EV car because we see more and more compact cars getting into the car park with an electric drive. It's not necessarily then driving profitability to have an approval on an EV car. It's more actually the size and the UHP mix, which is then driving the margin. I just wanted to add this point because we're coming from the profitability. Now, Stephan, if I got your question right, then it was about whether our plan going up to 15%-16% ROS level I talked about earlier is then rather a back-loaded or front-loaded plan. I think it's in the middle somewhere because in the beginning, we will have a strong focus on portfolio management and cleaning also our business. That will have certainly then a positive effect on the margin early on. The longer we go out into the five-year plan, we will have stronger mixed benefits coming into the plan. I think it's pretty much balanced. Monica, you were next. Good morning. Thank you for taking my question. The question is on the ultra-high performance tires once again. Do you have a target in term of weight in three years' time? If you can share it, we appreciate it. What is the pricing policy related to the increase in the weight of the ultra-high performance tires within the sector? If I'm not wrong, you shared some indication in terms of price mix over the next two or three years. Please correct me if I'm wrong. How much is the pricing and how much is the mix in your strategy, if you can share with us? The very last is on the customer base in China. What is your customer mix between Western car players and local players? Thank you. Okay. Let me talk about the first question, the last question, and maybe why don't you take the price mix? I think you explained what the assumptions are. I mean, at the end of the day, I would say staying with the current definition, so if UHP tires continues to be 18 in and above, we should, in the very foreseeable future on the PLT side, go beyond or into the above 50% mark relatively soon. In certain markets, if you take a look at China, we are already above 50% of our total sales is already UHP only. In other markets, it depends really on the market. On the other side, you have this, let me say, erosion of what is really a UHP tire. This is why we do not want to say, "Okay, our target for UHP is this%," because at the end of the day, also the definition of what is UHP is constantly changing. That makes this, let me say, KPI, I think, less meaningful to a certain extent. We can say as much value creation we can achieve. We do not mind. We increase it as much as we can. Of course, it makes sense. The last question on the customer mix, the OE customer mix, is your question in China. I do not know the absolute percent, but we are significantly more than 50% of what we do is with the Chinese OEMs, and significantly below 50% of what we do in China is with the others. We mirror the market, basically, which currently is produced. I mean, just use the example of BYD. We have been with BYD from the very beginning. We believe we are the biggest non-Chinese supplier to BYD, and we are also active with all of the other significant OEMs since years. Our strategy in Asia or in China on the OE side is not necessarily following our traditional customers into the market, but we worked from the get-go with the local OEMs. This is why we have basically the situation that we more or less mirror the total market share or market separation between the Chinese OEMs and the international OEMs being active. 65% to 35% right now. Roughly. Price mix? Yeah. Price mix. You heard me earlier saying that we expect over the course of the next five years a price mix of, in sales terms, +2% year-over-year. Obviously, short term, the focus in terms of pricing is on passing on the additional cost we are seeing right now to the customers, that is mainly tariff-based and FX-based. Midterm, in terms of mix, ballpark figure would be that we at least see it dropping through to the bottom line from sales by 50%, probably more in the ballpark in the range, 60-70%. That answers your question, Monica? Yeah. All right. Next up is Dom over there. If I missed some of you indicating your hands, please just raise it slightly higher so I can see it as well for the next questions. Hey, yeah. This is Dominique Abraham from Citadel. I just had a couple of questions on the ContiTech sale. It's understandably been quite a few tough years we've had in ContiTech, and you've given us a vision for getting back to double-digit margins. Do the buyers have a recognition of that turnaround potential? Hence, when we think of the transaction price, should we think of it based on the turnaround multiples and the earnings that business can earn on your midterm plan, or should we think of the transaction price more related to the current performance of the business? I have a follow-up afterwards. First of all, the indication that we get so far is that ContiTech is seen as a highly attractive asset in general. Being on this path towards an industrial pure play, which we are executing on, prerequisite is definitely the sale and execution of OSL, which brings us into this 80%+ region of industrials. Based on that, we have first indications that based on our historic, but also actual numbers, we see a certain valuation, but of course, that's framed. We will now work on moving forward to what is really standalone and what is, let's say, for this year, next year, and the years to come, what is the base for improving the margins. I guess evaluation, looking to all of it. It's always about the timing, and it's definitely both. It's a mix from where you're coming from and what are your proof points and what are the prospects going forward, and both have been taken into consideration. As Philip said, we had strong times at ContiTech. There are good reasons in particular as well. The automotive side, which deteriorated, we have taken our package. We have proof points on the one hand. On the other hand, you've seen our prospects going forward, and both have been to be taken into consideration. It is still too early, as we said. We are still in the preparation phase going into the market 2026. Follow-up questions then to come once we are getting closer. Understood. I had a very quick follow-up, actually. You mentioned this 2026 process. Will you be in a position to sort of formalize or accept bids already this year and then the process itself unfolds in 2026, or is that too stretched a timeline? Actually, we're still, as Niko communicated just a few minutes ago, we took a clear next step decision just now. We announced to work on the independence of ContiTech from Continental April 8th. Now we're going to continue the path forward, executing our next steps, getting more and more prepared, and then we're going to detail out. Maybe clearly, the spin is now the decisive part. You've seen there's a lot going on. You heard me saying nothing jeopardizes the spin. We have to be careful. We have some internal resources on group controlling, accounting, M&A, and we have to make sure spin works 100%, all hands on deck. At the same time, we have the OSL transaction. Do not forget, the pure play only takes place once the OSL transaction in the second half takes place, and then real execution phase will be in 2026. We are doing everything which we can prepare. Balancing does not mean that this guy is on the gas pedal and he wants to do this as fast as he can because the team is fully excited to get there. On the other hand, this guy has to balance as well the resources and make sure that we do the right things at the right time. Just to add what Niko said, last year in August, we announced the spinoff, and we said we will execute it within 2025. In March, we got more concrete and said it's September, right? This is how we will also handle it here, right? We make an announcement, and the next announcement, we will get more concrete when it's the right time. We don't want to make too early announcements. When we announce something, we will fulfill it and deliver. Ross, over to you. Hi there. Ross MacDonald from Citi. I had a question on the revision to the tires guidance for 2025. You mentioned that's related to tariffs, but would you be able to maybe drill into the specific moving parts behind that? Is that a volume decline you're seeing in the U.S., specifically in the second quarter, or is it increased competition in Europe as trade flows move, or is it a decision to maybe hold off on big price increases and go after market share? Just being curious what's driving that revision. Second question, just in terms of the best cost country exposure within tires versus the mega factory footprint, obviously with higher trade barriers, that could leave you exposed if your best cost countries are not in your biggest markets. I am just being curious in terms of the U.S. footprint, how you see that developing over the next few years, and maybe if you could comment on the cost of building one of these mega factories if you have to in the U.S. I mean, again, shall I start? Sure. I mean, the reason why we've opened the corridor for 2025 on the bottom side, so to speak, a bit is that we now fully consolidated or considered that tariffs could now stay as they are for the total course of the year. Number two, that exchange rates would stay at the 1.14, 1.15 as they are today. I mean, I said this in the past. We are roughly, if I take USMCA conform production on the PLT side, we are roughly 50% self-sufficient. So 50% of our total volume we sell in North America, we produce in the USMCA conform, let me say, way. The other 50% is coming today basically from Europe. The 25% import duties do hit us on 50% of our volume. On top, we have this $1.15 situation where we produce in euros and selling in dollars. That's a headwind which we are currently having, which is affecting us. Assuming now that this would stay and this would not cease or would improve, we still are then completely confident that we would stay within this corridor. Let's see what the future will bring, but we do believe it was needed to make sure that we have now really a bulletproof guidance, which does even consider that this, let me say, non-favorable conditions for us would stay. Maybe you might add as well that we have right now already the costs and the mitigation measures coming later. That's what Olaf has as well referred to. Of course, the costs for steel, aluminum input costs are already effective. The auto tariffs where PLT tires are included are effective since beginning of May. All the mitigation measures which we take in place are coming with a certain time lag, right? That is why we hit, and then our mitigation measures work against it. It is coming to your question. Is it volume? Is it other parts? No, it is simply more costs for us where we are working against with mitigation measures in order to level this out then in the second half. I mean, no difference to what I said in general. We are focusing on value and not on volume. We are definitely not focusing now on using the opportunity to gain market share. No, it is safeguarding the results. I mean, we are impacted, as I described. Number two, mitigation measures take some lead time, whereas the target, or let me say, the tariffs hit beginning of May right away. Second quarter is therefore most probably the most heavily loaded quarter in terms of these tariff impacts. This then also leads to, let me say, one of the two parts of your second question. U.S. manufacturing footprint assets, self-sufficiency, roughly 50%, including what we do in Mexico. I mean, I talked about this in the past. Tire industry is very asset intense. I mean, if you take a look at our greenfields, if you want to install, let me say, 4 million tires of capacity, you probably will need to invest, let's say, EUR 350 million. It takes you 4-5 or 3-5 years lead time before this is effective. Before you now make major decisions to change your manufacturing footprint, you need to have very clear visibility of how long lasting this environment would last. I mean, besides the asset efficiency and the lead time, in order to then really generate value, and you've seen our target, we want to be a return on capital employed above 20%. I'm sure you did your homework in comparing our asset efficiency versus our competitors. I would say it's fair to say that our efficiency is pretty competitive. This is based also partly on the fact that we run then our facilities for decades and not just for months and years. This is the second part where you need to make sure before you really now significantly change your invest policy, you must have really long-term visibility of how market conditions would be. I guess you all agree it's way too early now to make decisions to change our invest strategy based on what we see today. With having basically two relatively new plants in the U.S., we have still the opportunity to step by step extend them based on. We will be careful. Market. Your last point was on having mega plants and maybe not in the countries where we sell. Yes, I mean, this is what I was trying to say in the beginning with this balance of having plants in the markets where you sell, customer proximity versus on the other side, consolidating as much as you can into big facilities in preferably best cost countries. If you go to the extreme, you would have little plants in every little country. This is what we had in the past. You had a plant in Sweden, in Norway, in Ireland. Long past, 30 years ago. Long past. We rather now take really a regional approach and see Europe as one region where we try to find the right balance of consolidating within Europe as much as we can in mega plants in best cost countries, but not go even a granularity lower and now even divide Europe into subregions and then try to be rightly positioned. That is why in the market, for the market, for us, it is really a regional and not so much a country-specific view, specifically in Europe. In the rest of the markets, I mean, I talked about Asia. We produce in China, for China. There we rather take a country-specific view, but in Europe, it is very much a European view, taking Europe as one consolidated market, trying to find the right balance between the target conflicts I was trying to explain. In light of time, I think we have room for one last quick question and part of it comes from you. Yeah, it's a really quick question. I have a question on your European tires business and Chinese competition in Europe specifically. I mean, given that the European Commission has recently launched the investigation, anti-dumping investigation against Chinese tires imports to the European Union, I was wondering if you could give us some view on how would pricing be like in the European Union if there would be no subsidized cheap Chinese tire imports? Because what I'm trying to understand is how harmful these Chinese tires imports have been for you and for your pricing in the EU. I would say number one, I would differentiate between PLT and truck tires. Let me start with PLT tires. I mean, for good and for bad, everything in tires takes long. I talked about how much money you have to invest in order to really significantly increase capacity. That's not just only our challenge. That's the challenge for everybody. What you have seen here in the European market is that also the share of imported tires are increasing, but they are not jumping from one year to the other. It's more a steady development rather than a step change, which we have experienced. Therefore, it's also not really a step change in terms of price positioning and other, let me say, opportunities. I also do believe that in case there will be tariffs being implemented, this will also not lead then suddenly to a completely changed picture. Number one, because even prior to potential tariffs, there's only limited capacity in the market and players who are able to digest significantly more volume. Because, I mean, a retailer here in Frankfurt around the corner will not suddenly buy lots of Chinese tires. There are very few huge distributors who are able to consume a significant amount of tires. Even there, because of the proliferation of the market and the diversity of the individual players, you will not see really step changes. The other way around, it's also not that suddenly then there's, I mean, take a look at the total market, 350 million-360 million tires, total tire demand. Let's say 40% is occupied by imports. This 40% cannot from one day to the other be taken over by local production because simply this capacity is also not there. Even if these tariffs would be implemented, you would not see light-year changes, let me say, but it would obviously impact the competitive situation. It would support local tires. Obviously, it would support local production. How much remains to be? Same on the truck side, but more pronounced because it is a heavier weight already today. It is more volatility. I talked about lower utilization rates in truck, which we are e xperiencing these days. The impact there would probably be stronger. All right. With that, we have already reached the end of part one of today's session. I hope you took a lot away from strategy, performance, opportunities. Thank you very much for the holistic Q&A. Also, thank you for your question. This concludes part one for the ones joining us online. Thank you very much for tuning in. We will resume at 2:00 P.M. with the second part with the presentation of AUMOVIO. Thank you very much. Thank you. See you soon. Dear all, a very warm welcome to the Capital Market Day of AUMOVIO, the planned spin-off of Continental's automotive business sector. My name is Michael Saemann. I'm currently leading the Investor Relations Department of Automotive, and I'm delighted to welcome our guests here at the premises in Frankfurt, Rödelheim, as well as everyone joining us virtually from around the globe. Over the next few hours, I will guide you through a program which is packed with valuable insights into our business. Before we begin, I kindly ask you to take note of the disclaimer, which is important for regulatory reasons. Please also note that a recording of this event will be made available afterwards. Let's begin with a quick look at today's agenda. Our CEO, Philipp von Hirschheydt, will kick off things with his perspective on AUMOVIO, followed by presentations of our CTO and the business area heads, with deep insights in their respective fields of responsibility. We will conclude the day with remarks from our acting CFO, Philipp, who recently assumed this additional role. If we look at the broader picture, it's clear that the automotive industry is undergoing profound change. It demands greater focus, faster execution, and a sharper strategic direction. With the planned spin-off of AUMOVIO, we are responding decisively to these challenges. Since the initial announcement, we have secured the approval and the support of key stakeholders and shareholders. Today marks a significant milestone as we present AUMOVIO in this Capital Markets Day format, the next step in our journey towards the planned spin-off in September, which will be a landmark moment in AUMOVIO's history. Let's get started, and please welcome our CEO, Philipp von Hirschheydt. Thank you. Good evening, good afternoon, not good evening, but good afternoon to all of you also from my side here in Frankfurt, our future corporate headquarters of AUMOVIO. We are very proud to have you all here showing what our company is able to do, how we see the future of our company, and how we see the future of technology in the automotive world. Before we go into our vision for a strong AUMOVIO, for a strong automotive supplier acting on a global base, let me quickly introduce myself. As Michael said, I am Philipp von Hirschheydt. I'm going to become the CEO of AUMOVIO, and I am, since the end of May, also the CFO of AUMOVIO due to the sudden change and for personal reasons as Karin Dohm needed to leave us. I'm more than 20 years in the automotive industry. I am, since 2023, responsible for the automotive sector in Continental, and we have embarked on a quite intense journey. We have done a lot of things over the course of the last years. I took over from Niko Setzer, working on improving automotive AUMOVIO and making it fit for the future. One major topic in any company is how do we see ourselves, how do we see the brand, and how do we see the future of our brand? With this, I want to show you the future brand video of AUMOVIO as a starting point. The world is changing at the speed of light, influencing mobility and transportation as well. In times of rapid transformation, certainty is a rare thing. Yet one thing is clear: in a world of 8 billion individuals, there is not just one future of mobility. There are many. For some, this may feel unsettling. For us, it is an opportunity because our strength lies in our ability to lead, transform, and deliver. We are the adaptive powerhouse for future mobility, ready to meet whatever comes next. We are ahead of the curve. We are reliable no matter what. We are stronger together, and we are committed to win. Mobility is evolving, and so are we, creating solutions that move the world. With sharper focus, greater agility, and the independence to adapt like never before, we stay ahead of change. We make mobility safe, exciting, connected, and autonomous. That's why we are inspired by the future, driven by technology. Yeah, I guess you already know why we think the spin-off is the right thing to do. As my colleague Christian Kötz said, "For good or for bad, everything takes long in Tires." We see that our industry is changing at the speed of light. That makes the big difference between where we are in, what we need to cater, and what we need to deal with on a very constant basis. Who is AUMOVIO? AUMOVIO is a company with around 90,000 employees. We managed to have sales of EUR 20 billion. We have had an EBITDA of EUR 1.4 billion. That is something we think is one of the most important things. We have a global presence and a very strong local footprint. With this requirement, with these prerequisites, we managed to get a positive cash flow in 2024 of around EUR 250 million, and we improved our earnings by 240 basis points over the last two years. We are a company which makes mobility, which is focused on mobility, which is making mobility safe via our business area Safety and Motion. It is exciting via our business area User Experience. It is connected via our enabler of value-driven architectures, Architecture Network Solutions. Last but not least, we think the future is autonomous. Mobility is going to be autonomous, and that's how we deal and where we deal with our business area Autonomous Mobility. You are going to see today as a major part, and many of you have already asked me, "You need to talk more about product." That is today the chance. You can ask questions, and we are going to present to you how we see the future of mobility. That has been represented by our CTO, Nino Romano, who will just come after me. It's represented by our four business area heads, being it's Geoff Rosemar taking the Architecture Network Solutions arena via Ismail Dagli, who is talking about Autonomous Mobility, Pavel, our head of User Experience, and Boris Mergell, who is heading since basically one year our Safety and Motion arena. We are an organization which is very much focused on entrepreneurial spirit. That's why we have made our business area very much in focus and responsible for the business in their respective product arena. We drive the business via our four business areas, and we ensure that where synergies are able to be done, we synergize at the central level. That's how we work on the purchasing side, how we ensure synergies, how we ensure that we are going to grab all chances which are able to be offered in the market. We do see that in specific parts on operations, we are able to combine, and specific parts we are able to manage even better our production footprint on a global level. Innovation drives on central level as well as on the business area level. All this is going to be presented by our CTO, Nino Romano, and of course, other central functions where we say, "Here we are able to ensure that synergies are being taken and are being brought forward." Before now going into all the details, let's have a short look on the overall market. We do see that our industry is facing a lot of uncertainties, being it is market, being it technological uncertainty. Although we are power traders, if markets are down, we are facing that spiral as well. Our underlying market production is limited in terms of growth going forward, and we also have a very global industry facing geopolitical uncertainties. To see information at the speed of light is the change in value chain. We do see that the Chinese market is facing a tremendous competitive environment, traditional competition is intensifying on a day-to-day basis. I think we are well equipped for the future. We are a technology leader. We have global reach and local for locals. As I said, we have a very strong purchasing organization. We are basically one of the biggest automotive semiconductor purchasers in this industry. So we can drive a lot into the market. That's why we also announced just yesterday that we are building up a design team for semiconductors going forward, because we think we do have here a competitive advantage which we need to play much more into the market going forward. We have a deeply embedded technology, and we are able to reach that on a local level as well as gaining global scale and global synergies. We will come to that. I'm going to show specifically, Nino will going to show you how are we being set up. We are a global company, and we are convinced that global reach is not the only solution for the future. You need to be able to synergetically approach local customers, to approach within regions, your customer and the demand of your customers, and you are needing to be able to do that in a very effective and efficient way. In our products, where we are focusing on, we are already an 80% market leader. We are an 80%, we are many times the leader. We are in total at 80% within the top three of that respective market, and we are focusing on getting better and better in that arena and ensuring that the ones which are not yet market leader are going to get there, or we are able to know of how we are creating value with these specific products. Olaf Schick in the morning has already presented that we are going to go into our independency with a very comfortable financial position. We are basically going to go into our independency without financial debt and with a significant EUR 1.5 billion cushion, something which we are going to show you that today is not normal in our industry, to put it politely. We do see that with our products, something we're going to look at with our products, we are going to be able to significantly outgrow a more staggered market. As you can see here, we assume that over the next years, the market itself, production is only going to grow by 1%-2%, if at all. According to a study which we did with Barrel, the Market Research Institute, we are going to be with our products, our underlying markets are going to grow between 4%-5%. We do have a good chance to outgrow the underlying production figures. I talked about lead. I talked about that we are with 80% of our products within and among the top three, and we are convinced that we have a portfolio, a comprehensive portfolio where we are leading in future-proof technologies. Over the last two years, we had a strategy which was based on three pillars. We said we want to lead, we want to focus, and we want to perform. We put that on the next level. We said we need to maintain the market leadership, but we need to transform our organization now into a high-performance organization. What we need to ensure, something which we forgot from time to time over the last years, is to deliver on our commitments. That is something which we are going to show you today. We have a team assembled. I'm very proud of being and leading that team into the future of AUMOVIO. It's a team which is knowing how to deliver, and that commitments are commitments which need to be ensured that respect. If we talk about leading, if we talk about portfolios, we do have with our portfolio the great chance to work in a market which is going faster than the underlying production. What we see and where we are convinced of is that the future is going to be the software, how fast it's going to be, and how different customers are going to adapt the software in their respective architectures. What we know and what we do see is whatever speed a customer is going to take, we are ready to serve. We are ready to serve on a system, on a component, and on a service level. We have a long-standing expertise in hardware, and we do have with meanwhile close to 18,000 software engineers, a significant power in the software arena. We add to that services. That's where we think we are able to be a supplier which is state of the art of today, and we do know how we are going to bring innovation into the future and into the tomorrow. We do know, and that's what we did over the course of the last two years already intensively, is we focus. We look into how are we performing. If we are not performing, we are working on improvements. If we are not improving, if we are not seeing a chance to work value-creative in that respective product segment, we decide to sell or close. Something which we demonstrated just last week where we announced that we are going to sell our plant at the respective business in Italy to a partner where we say he is able to manage the business better than we can do going forward. There's a rather sharp look at what and where are we able to make profit, how are we able to drive our business value creative, and if we are not able to do so, we take the decisions to focus and to reduce. I was talking about that local scale needs to be accompanied by regional global growth needs to be accompanied by local scale. We're a company which is basically distributed with 50% in Europe and 25% in North America, 25% in Asia in terms of sales. In terms of employees, somewhat similar. You see here we have already a very strong regional manufacturing footprint across the world, something we are going to work on in order to be on a very constant base, efficient and even more efficient. Also on the R&D side, we have still chances to improve. We do see that the resiliency which is required in our market is going to be brought by our infrastructure, which is allowing us to be and to lead into a significant upside potential going forward. Being a regional player is one thing, but we are very much convinced that we need to be able to locally adapt to the needs of the markets. These days, North America is something which is very much in the spotlight, and we do know that, and we work intensively on preparing our organization towards the different needs and demands of our customers. North America, basically 20%-25% of our sales, we have established a key market for us, and we are one of the leading automotive suppliers in North America. More than 90%, not more than 92% of our products are USMCA compliant, and we do have long-standing relationships with local OEMs. The major part of products we produce and deliver to our American customers or American-based locations are ex-works sold, which means the necessary tariff payments are with our customers. That is why we are also convinced that we are going to be able to maintain our guidance for 2024 and for 2025, although having the tariffs in North America. We have prepared our organization. We are working for many, many years according to the principle of in the market for the market, and that allows us to have a very resilient and robust organization. Looking at China, a business where we have been established 30 years ago, our footprint, we have more than 10 manufacturing sites. We have 10,000 employees, and for us, it is a very important market because we do see quite some chances for growth. COEMs already represent a great part of our business. We gain a lot of new business with our Chinese OEMs, Chinese customers, and we have a lot of things, a lot of R&D and manufacturing already localized, and we are in the process of empowering our local organization in order to be able to act fast and agile and flexible in a very demanding market environment. Also here, we feel as well set up for the future, for additional business, and for any competition. I was already talking about how do we set up our organization, having four strong entrepreneurial companies, business areas driving the business in their respective business fields, and centrally managed purchasing, centrally managed supply chain, centrally managed operations, and innovation. This is something which we see combined as operations and technology organization driving execution into the future and working on innovation in terms of make or buy. We have a startup company called Co-Pace, which is working with a lot of different startups in order to make us more competent in new technologies to ensure that we are binding and maintaining the technologies of the future in our field. Partnering is a strong asset which we are going to use even more in the future. This on the leading side, the first major pillar of our business coming into transformation where we say whatever happens, even in being a business which is already in a leading position, we need to ensure that from a cost point of view, we are very competitive. We have done a lot over the course of the last two years. We have already started in 2019 to close the first sites because of the transformation which we have foreseen, and we have significantly adjusted our overall infrastructure. We have ramped up new businesses. We have close to 1,000 new product ramp-ups initiated and executed since 2022, and we have repriced a lot of our products. We also did a significant invest into our manufacturing footprint. We moved from high cost to best cost location. We have meanwhile more than 80% of our production in best cost, and that's why we are very much convinced in the future we are able to significantly reduce our capital expenditure. In our guidance, we say we are going to invest less than 5%, and we are convinced that we are able to bring that also into the long run and that we can leverage what we have, and we can leverage the mega plants and mega factories which we have set up. We have already decided and communicated that we are closing five additional high cost plants. As I said just last week, we announced that we are going to sell the sixth one so that we are moving more and more our production into best cost country. With our new products which are going to come into the market, with the portfolio improvement we have been doing, we are very much convinced there is a significant further potential ahead of us. One thing we have been working on very intensively has been our overall workforce over the course of the last 15-18 months. We have meanwhile reduced by more than 15,000 employees since mid of 2023, and we have by that ensured that we are safeguarding the future of AUMOVIO going forward. In a challenging market environment, we are convinced you need to be a very cost-conscious organization. You need to ensure that you are able to drive the business at most and maximum efficiency. That is how we have been managing over the course of the last quarters on a very regular base to improve our cost base while not jeopardizing our innovation power. That is why we think, and I explained it already in the beginning, the standalone of AUMOVIO is a great chance for us, and that is going to be the catalyst for even higher growth and for better profitable development going forward. Let us look into the delivery. I think the first thing which I wanted to explain is that we have a very strong leadership team in place. We have ensured that this leadership team is performance-oriented. I talked about value creation. We have set up an organization which is very much entrepreneurial-minded, and we made everyone directly accountable. If we are looking now into our remuneration schedule, we do see that, and that's where one of the major intents of us to align the interest of management with the interest of our shareholders. Right after the spin-off, the senior management team, the Executive Board, as well as the major part of our senior management team, is going to get a so-called spin-off bonus to be invested into shares of AUMOVIO. The first tranche is going to come right after the spin-off, and the second tranche is only linked to success and to development of the AUMOVIO share and is going to be paid out 18 months after the spin-off. We have linked the entire remuneration schedule, and you can see here the fixed part is only 25%-35% of the total remuneration package, very much linked to financial goals and to one major KPI, come later to that, is the return on capital employed. We are very clear we do have a great chance to move our organization forward. We have done a lot of things. We have managed to come from break even in 2022 to 2.5% in 2024. Our guidance for this year stands at 2.5%-4%, and we are very much convinced that even with very stable and not very much growing markets, we are capable of reaching the 4%-6% midterm. Midterm means, and this guidance means we want to reach the market average we somewhat see at 5%-6%. Being an ambitious team, we want to reach, then long-term for us, long-term is somewhat 2029, 2030, is where we want to be better than the average, where we want to reach 6%-8%. The good thing is we have managed a lot of things already now. We know how to execute, and we know what to do in order to be successful. We have managed to reduce our R&D costs already, and we have a clear plan of how to come to 9% or even less than 9% R&D to sales in the long run. We are moving our manufacturing footprint, and Nino is going to explain that we are moving our manufacturing footprint even more into best cost country, and we are ensuring that what we do, we do at the right values. Via a very significant cost reduction program which we initiated, and where lots and lots of the results are now going to come over the next years, we are very much convinced we are having our fate, our destiny in our own hand. That helps us to go also then into the next phase, which is after a significant cost reduction, ensure that our new products, that our innovations, that our new projects are now running into the top line and ensuring that we are going to see also some operating leverage going forward. We are converting high margin order intake into sales. To summarize, we are convinced that we are a company which is ready to rumble, which is ready to act in a very difficult and very demanding and challenging market environment. We are a global player, and we have top market positions in place for the great major part of our product portfolio. One thing very important, we can act on a very strong balance sheet. We do not need to work on a day-to-day base on financing. We are capable of executing our program, of executing our strategy, and we can look at cost competitiveness as one of our key focuses. We have a lot of portfolio measures already done. We have looked into how, and we will also look into on a very regular base. Everyone in this organization knows that value creation is the driving force, and we do see now the spin-off as a major catalyst to be able to make us even more successful, to ensure that with our highly committed leadership team, we can ensure that the upside potential we foresee is also going to be reflected in the share price going forward. That's from my side, and with this, I hand over to Nino, who is going to guide us through the technology department. Thank you, Philip, and also from my side, worldwide welcome here in Frankfurt on our test track facility. I'm Nino Romano, and I'm the CTO of the automotive sector, and of course, in future, the CTO for AUMOVIO. Since my last 30 years, I'm working for Continental mainly in engineering activity, and in this time, and that's what I was going to explain a little bit, focusing on innovation and brand new technology. The last five years, I was responsibly within automotive for quality and operations. I would really like to emphasize again, I'm proud to have you here, talk to you here out of this facility because in this test track, this is really where my career starts. 1993, 1994, I was a young engineer working for Electronic Brake System, and with a small team, we were starting innovating products. At this point in time, this was a stability control project, ESP. This was then launched in 1998, and I think all of us know exactly that was really one of the breakthroughs in vehicle safety. Yeah, that I can tell you springing back memory, sitting with you here exactly on this spot. As you heard from Philip, mastering market challenges and speed is key. Therefore, also as Philip said, AUMOVIO operation technology was established in February 2025 through the merge of R&D and operations function. We merged this function because we aim to achieve an even smoother transition from engineering to production, but further harmonizing process and utilization across the entire, and that's important, product lifecycle from innovation to production and what is important for the future beyond. Operation technology takes ownership of various strategic areas. Let me explain a few of them. We're talking about artificial intelligence, supply chain management, and sustainability, along a streamlined value generation across the total group. Overall, this empowers AOT to steer the two strategic pillars. You heard this already from Philip, innovation leadership and execution excellence. Let me outline how AOT contributes to making AUMOVIO a leader in both innovation on the left side and execution excellence on the right. One, our innovation leadership allows us to set the right focus to assess optimal innovation opportunities, to unlock the full power of our business area working together, play an optimized role in technology disruption, come later on to this topic, drive strategic execution, and power our business area process with automatization. Second, our execution excellence allows us to drive harmonization across AUMOVIO, drive our production efficiency and overall resilience, identify internal control outliers, and uphold governance principles. Through this dual focus, we deliver strong support to all our four business areas, allowing us to jointly unlock the full potential in the future of AUMOVIO. Now, I will walk you through the, I mean, I can only talk about five. I could spend hours, but we pick the five key levers that support our value creation, fitting within the two pillars, innovation leadership and execution excellence. Firstly, on the innovation leadership, we have A, cross-tier innovation, B, disruptive technology focus via or with our partners. Secondly, our execution excellence, we have C, standardization across the board, D, the local footprint, and E, resilience throughout the business. AUMOVIO has proven track record of leading through innovation. We operate with a global R&D force, over 31,000 R&D employees located in all key innovation locations. This employee powerhouse drives innovation for our customer on a local-for-local basis. Of course, we cannot do everything alone. In order to focus on our core competency, as said also from Philip, we seek partnership with leaders in their fields. We collaborate with top innovators across industry to develop future-ready solutions. As you can see, our partner partnerships span a wide spectrum from startup, some of which coming from our, as Philip already said, in-house company Co-Pace to leading big tech companies. Lastly, we have more than 100 years of innovation experience in automotive industry. This was already evident in 1923 with the introduction of the AutoX clock as the first VDO tachograph. We continue to introduce pioneering automotive innovation over the year. This was including ABS, adaptive cruise control, head-up display, and the first virtual key joystick. These are already key innovations in the automotive industry, and I'm really proud to have been involved in some of them getting those to life. AUMOVIO doesn't sit still. We continue to forefront of innovation today. Let me show some of our most recent achievements here. To be a leader of innovation, we need to set a clear direction of travel. AUMOVIO strives for innovation in the following fields, which are lived through our four business areas: connectivity and computing with the first HPC on volume production, autonomous driving with the first commercially viable transportation as a service, by the way, ready for initialization in 2026, future and car experience, pioneering mass production of OLED and pillar-to-pillar display, and last but not least, next-generation safety system with the first-to-market semi-dry brake solutions. My colleague, I'm really, of course, going to touch on these topics and this innovation later on on their presentation. To deliver cutting-edge innovation in this area, operations and technology support the business area with internal innovation and, second, as said, innovation with our external partners. This structure allows us to focus on the core competency while accessing state-of-the-art technology and ultimately going faster to market. As we look at our internal innovation, that we, by the way, there are a couple of cool demo cars outside where you can experience exactly those cross-business area activities. Internally, we are exploring through AOT organization by really getting this cross-collaboration through the business area. We are doing it that way. First, we are creating value while serving full system demand. Second, we are championing the knowledge, sharing from experts in different domains. Third, we check the alignment of technology requirements to be sure that we are avoiding redundancy, optimizing development, and ensure to have an effective interplay between the business area. Last but not least, this framework enables the really true cross-business area innovation, unlocking integrated solutions. On the right, you see the recent example of innovation product resulting from fusion of components and technology of the different business area, and as said, few vehicles can be experienced afterward outside. These are, by the way, deviceless access and cabin sensing. We have the deviceless access as one of our demonstrators afterward. Now, let me look on the second pillar: how we support innovation leadership. We focus on finding, enabling, and driving disruptive innovation that transports both process and product across the entire organization. We evaluate commercial use and screen for leading partners to access the latest technology, ensure a clear focus on our core competency, and enable a faster go-to-market. An example on process innovation, one of the initiatives where we introduce innovations through a partner is our AI tool. This is used for analyzing our requirements. Our customer expects us to meet a diverse range of requirements for their product. Reviewing this document, which can exceed thousands of pages, requires extensive manual effort. Our tools, our AI tools, streamline and standardize the analysis, cutting the manual work by 80%. Now, on the right side, an example for product innovation. We are collaborating with the startup DeepDrive, and this showcases how we combine our deep product knowledge with the expertise of a strategic partner to pioneer long-term disruptive innovation. In this example, we leverage our expertise in braking systems and DeepDrive's specific expertise in lightweight electric motors. With this collaboration, it has led to the creation of an electric brake system unit that is brand new, with the potential really to reinvent vehicle brake electrification. This is what I mean when I talk about AUMOVIO innovation leadership. That allows us to reach the second strategic pillar, execution excellence. Standardization. We support the value creation of AUMOVIO through standardization across all the business. In the field of production, we continuously increase the level of standardization in all our facilities. This is absolutely key. Standardization enables us to drive efficiency and flexibility to manage capacity. We, for example, standardized 100%, meaning all of our electronic production lines across all plants worldwide, which allowed us to reuse lines and spend around EUR 80 million less CapEx in the last two years. This approach enables us to achieve a CapEx to sales, as mentioned also for EMEA, below the 5%, while optimizing, of course, manufacturing costs. There is, of course, still a lot of standardization potential for us in AUMOVIO to deliver and increase our margin improvement. On the bottom, in the field of engineering, we standardize process, method, and tools to enhance the quality of our work and improve the employee efficiency. Our standardization process and methods result in a reduction of 2.4 million working hours, an equivalent of a potential of 1,400 FTEs. Our standardization engineering infrastructure is one of the drivers to achieve an R&D to sales below a ratio of 10%. Under our execution excellence framework, we have implemented a series of innovative reductions for manufacturing costs, which are still, of course, in progress, but of course, also part of our long-term ambition. First, variable and fixed cost reduction. We benchmark costs across all plants worldwide, really all the network of the plant worldwide, and share the best practice. We work also with our plants on lean manufacturing and our shop floor management, sharing, of course, the knowledge from the plant in all three major locations. Second, CapEx reduction. We increase utilization and save CapEx spending through reuse of manufacturing assets. As already mentioned, we drive improvement of electronic production line loading. Last but not least, we are thoughtful about the level and the timing of infrastructure investments. Third, footprint optimization. We are striving to move our manufacturing to have more than 88% in best cost country, driving a positive impact for our P&L. We incorporate resilience aspects as well as customer proximity into our footprint decision. I will share with you a couple of data points later on. With execution excellence, we have seen our clear target to reduce our R&D to sales ratio below the 10%. On the left, you see our ambition. One, reducing FTE to less than 27,000. Two, increase engineering best cost share to more than 70%. Three, right-size our R&D footprint. How do we believe to achieve this? On the right, we have identified clear sustainable measures: standardization and reuse, extensive AI use from requirement analysis, as shown, encoding to generation of test cases, automated process and method, and of course, lean organization. Reduce line levels and decrease spend off the control. By the way, in the last one and a half years, we have reduced the number of our managers by more than 200. As said, the consolidation of our R&D footprint. Based on these levers, we are confident that we will sustainably reduce R&D costs to sales and reach our group ambitions. Now, let us review how we optimize and reach the highest efficiency in our global but local footprint. Once again, on the left, you see our ambition. One, increasing our utilization to 95%. Then, 88% of our headcount situated in best cost location. Last but not least, reduce our plant footprint to 45% in long-term targets. Again, why do we believe to achieve these targets? We have put a clear sustainable measure to unlock the benefit of our global but local footprint. These are footprint optimization, alignment of the capacity, and three, driving resilience by focusing on regional production and robust supply chain. Lastly, within execution excellence, let me dive into our resilience supply chain and the benefit of our scale. We proactively manage our supply chain to ensure a seamless production, even in the face of global disruption, like those that everybody experienced during the pandemic time. Let me now steer your attention to two key initiatives. One, electronic procurement, and the second one that is going to show in a couple of seconds, vertical integration, besides the many others that we are still focusing on. Electronic procurement. One key example on how we centrally manage our supply chain as one, as Philip said, largest purchaser for semiconductor is our electronic procurement approach. In the past, each of our plants had to deal with all the suppliers worldwide. Now, we are managing this centrally, reducing the complexity and increasing, of course, or reducing or increasing the effort significantly. With this measure, we are committed to maintain the optimal mix between operational performance, stability, and working capital expense. As strategic initiative, we are focusing on consignment stock and working closely with our supplier to achieve a healthy consignment rate. This increases the stability of our business and satisfaction, that's very important, of our customers. Now, let me come on to the vertical integration. You heard also from Philip that today we announced what we are going to do. As said, we are one of the largest semiconductor purchasers worldwide in automotive. While we are already leveraging our purchasing power in procurement, we will pull, as said, another exciting lever aiming to reduce our dependency and increase the resilience of our semiconductor supply chain. We will become a specialized semiconductor organization. What does this mean? Our core competence lies in the understanding of the automotive industry. Therefore, we will design semiconductors based on the specific needs of our automotive customers. This allows us to reduce costs, enabling our margin, and as you know, this is typically seen in the semiconductor industry, while operating proprietary and clear competition. We are excited for the opportunity. Now, last chart, let's wrap up with AUMOVIO's ambition to further accelerate using our two strategic pillars. As said, on the right, technology for tomorrow leadership while always being on the forefront of innovation. We aim to continuously leverage our unique internal know-how and choose the best partner to provide unique solutions and go-to-market speed. Second, execution excellence. Our target is to ensure sustainable cost competitiveness by increasing efficiency and to support the less than 9% R&D to sales ratio on a long term. The key focus is the right-sized manufacturing footprint, as said, reduction to 45 plants in the long term. We are in the market for the market with an optimal share of 88% best cost country. We have set clear ambitions of CapEx reduction to less than 5% of sales. Additionally, we are focusing on sustaining and improving our supply chain. To sum up, while we have demonstrated the track record in the innovation leadership and execution excellence. We work with 80% of the top 30 OEMs. We are present in all regions with local research and development, local manufacturing, and with a robust supply chain to serve the local markets. We are close to the customers. Very important, we master the various standards and regulations related to our products and to our services, and this on a worldwide basis. Our customer access, global reach, and leading portfolio translate into strong financial performance, 7.5% return on sales in 2024. Building on what we have today and looking to the future, it's an exciting one for us. We believe to be the key beneficiary of what will come with software-defined vehicles, the need for more computing power, the need for more connectivity, IoT, cloud services, AI, you name it. All these trends will generate continuously growing content per vehicle year-over-year. It is true that the pace of SDV, and Philip mentioned this, adoption is uncertain, but it is important to understand that we do not depend on it to achieve our profitability targets during the next five years. We are ready to benefit from the SDV trends, and as the transition unfolds, we will see upside in our plan. Now, what is the additional growth of services along the emerging architecture? On the left-hand side of the slide are our strengths. Most of them are based on decades of experience worldwide, such as design and production of automotive electronic devices, purchased on large scale. This explains why we are top three of the 90% of our product portfolio. On top of this, we capitalize on experience during the last years in driving very complex projects serving software-defined vehicles. Only the in-depth understanding of the entire vehicle architecture, of the complete development chain, of the automotive practices enables us to tap into this business opportunity. These competencies qualify us as partners in the frame of software-defined vehicles. The concrete additional services are for us many architecture optimization, feature integration, feature maintenance, and build-to-print. Clearly, we are not the only player looking to capture this upside potential. On the left-hand side of the slide are the new players. I'm going to show you why they need us to succeed. Firstly, OEMs. They are trying to vertically integrate activities, but they usually lack the benefit of scalability. They lack as well the expertise and breadth of solutions that still one has while working with every OEM. This is why after witnessing a major insourcing trend the last years, we now see an observing reverse process. Secondly, the tech giants. They also want to play a role in our industry. However, to be successful, they need in principle an automotive partner like us to adapt and to integrate their solution in the automotive world. This is why they work with us, and I will address our partnership in the next slide. Thirdly, there are regional Tier 1 competitors. For example, in China, here we engage our local-for-local structure, local research and development, and local manufacturing. We also develop our local ecosystem with local partners. On the right-hand side of the slide, we describe how we address all these challenges with our ability to integrate both hardware and software tailored to the automotive industry. We have the relevant competence, experience, scalability, and broad access to technology. As you can see, while our challengers all have distinct capabilities and a place in the automotive industry, we retain our foothold in the automotive hardware and software market, and working with us, it makes us players successful. Now, I want to address our partnership as it is a very important topic in a fast-evolving environment. I mentioned that we are very flexible to work with any partner required by our customers, but we also have our strategic partners to leverage their competencies to overcome geopolitical constraints, to access to markets, or even to limit risks. It is not efficient to try to do everything by our own. We compete where we are strong; otherwise, we partner. Our approach is exemplified by a long list of partners we are working with and have successfully completed projects with us. A concrete example, we partner with Google. Google has great features for the automotive industry, but these features need to be adapted for the automotive environment. This is our role. We adapt and integrate Google features into the automotive world. Another example showing how our strong partnership. We were the first and among the few Tier 1 being qualified technology partners by the major smartphone providers. This is crucial for the very important feature, digital access system. There are just two examples among many. We talk about the growth potential and the strengths of ANS, but it is also important to understand that we have worked hard over the last years to address major issues, especially when it comes to operations and execution. When I took on this role, ANS was struggling with significant challenges, including big issues like budget overruns. Let me go through some concrete examples of what we successfully achieved during the last past five years. On the product side, we have introduced a new business model for engineering services with substantial upfront customer payments. We adapted our portfolio to higher margins. We ran systematic redesign to cost. We managed turnaround for products that had negative return on sales. On the cost side, we have significantly reduced our overheads. We also removed two management layers to reduce complexity and cost. We have improved efficiency in research and development with better processes, better methods, and better tools, and with an improved global footprint. All in all, we have reduced net research and development ratio by 350 basis points since 2022. On the manufacturing cost, we continuously improved and we still continue to improve the performance of every plant. We have worked on significant reduction of production and logistics costs supported by the global home of your program mentioned by Nino. These efforts have led to a significant improvement on Adjusted EBIT margin from -4.1% in 2022 to 7.5% in 2024. These measures are implemented to be sustainable and to support cash generation. With this, we have now a culture of cost focus and operational excellence. Last but not least, financial perspectives. Here is a short overview of our sales and Adjusted EBIT margin. I have explained our major turnarounds in the last years, taking sales to EUR 5.6 billion and our margin from -4.1% to 7.5% +. The question is now, where do we want to go from here? We intend to leverage our extensive product portfolio and aim to benefit from software-defined vehicle growth to reach higher sales, higher than EUR 6 billion in the long term. This is a base case assumption of moderate penetration of software-defined vehicles. If the market accelerates SDV adoption, we are expected to generate more sales and related margin. With our global scale, local-for-local approach, and strategic technology partnership, we believe we have a strong position compared to most of our competitors. We will remain very focused on cost and discipline, particularly in terms of research and development expenses and operational excellence. With this, we expect to meet high single-digit EBIT margin in the long term. We are confident that we can achieve these levels. As you can see, ANS is a market leader with a strong position to benefit from SDV. We are the key integrator of choice and leverage a partner ecosystem to maximize innovation and flexibility for OEMs. Following our turnarounds, we see a clear path to further growth in sales and margin with potential upside from SDV. ANS is proud to contribute to the success of Home of Your. Thank you very much. Thank you very much for showing us how the architecture of the future will be enabled by you and your team. Now coming to the next topic, automated driving with a whole variety of what we have. Please, Ismail Dagli, join on stage. Thank you. A warm welcome from my side as well. My name is Ismail Dagli. I'm responsible for the Autonomous Mobility business area. I've been with Automotive for more than 25 years and with Continental since 2020. I started my journey with a PhD thesis in autonomous mobility at that time with very simple AI, but as well a trunk full of computers. You can imagine how excited I am to see the rapid progress of the recent years where ideas of the past that we certainly have had become now commercially relevant and viable products. AM comprises exciting technologies and is structured in two areas with distinct capabilities. One is autonomous mobility, and the other one is commercial and specialty skills. Both businesses have a strong positioning in their respective markets as well as an upside potential in growth and profitability. Firstly, the autonomous mobility business comprises three strategic pillars. Components as a well-established business include technologies like radars and cameras, system solutions that we realize level 2+ driving and parking systems for passenger cars, and as a service business. Here we are pioneers in autonomous trucking. Together with Aurora, we are scaling a per-mile business model that is built for commercial success. We combine our competencies with hardware, software, and as a service model that enables recurring revenues along the complete lifecycle of an autonomous truck. Secondly, equally important in the segment, commercial and special vehicles, we focus on commercial vehicles and the off-highway market as well as on fleets and workshops. We offer a broad portfolio of vehicle electronics, software, and services with a market-dedicated setup. As just explained, AM is an exciting business area of Home of Your with significant financial upside. Here is a quick summary. With our complete portfolio, we are acting in structurally growing markets and benefiting from the trend on one side towards automated driving and on the other side towards a higher content per truck for CSV. Our success in AM is built on the three-pillar strategy. One, a strong foundation in high-performing ADAS components. Two, a cost-efficient driving and parking solution where we expect major profitable growth. Three, the upside potential from as a service business and deployment into autonomous trucking. Meanwhile, within our CSV business, we are operating in a financially healthy position and are the market leader in an attractive market enabled by the Home of Your portfolio. Overall, this gives us a major upside potential, which is driven by profitable growth opportunities based upon our attractive offering. The autonomous mobility business is following our three-pillar strategy, component systems, and as a service. Here are the respective markets. As all of you experience driving in your vehicles, the level of automation has increased over the last years significantly and will continue to increase. This is a critical driver for AM. We believe that this development will deliver higher content per vehicle across all of our three strategic pillars. To start with components, growing safety regulations are further pushing the demand for advanced driver-assisting systems, ADAS. Hence, AM components have seen an accelerated growth over the last years. Second, higher level of automation in passenger vehicles are expected to drive growth in our system business, especially in level 2+ systems and particularly with volume vehicle models of our OEMs. In China, we have seen a fast development and market acceptance of system solutions. Therefore, China offers major growth opportunities and comes with an own ecosystem of solutions. For China, a local and competitive solution is key. In conversations with R&D and purchasing heads in Japan, we also discussed that these solutions can be viable also outside of China, scaling this technology across the complete region. Thirdly, as a service business, why this emerging market? It's known that truck drivers are a limiting factor in the transportation industry with driver shortages and high wage costs. Autonomous trucking addresses this problem. Moreover, supportive regulations are also tailored for this market. We see a major upside from as a service market in level 4 trucking, especially in the longer term. From a market viewpoint for our complete AM portfolio, there is an attractive environment with structural growth opportunities driven by safety regulations and automated driving demand. Before we jump into more details of each pillar, let me point out the benefits of both strengthening our stable components business, but also expanding into system and service solutions. We have been successful in the components business for many years. It's our reliable foundation. In the future, components will be defined and linked towards awarded system business. The value creation within a system that comprises hardware, software, and integration will be higher than in components. Therefore, it's key for us to position ourselves in the growing level 2+ market. Lastly, AM is pioneering the autonomous trucking, which I feel very excited about. It's game-changing and gives us access to recurring revenue business models, allowing us to monetize our service capabilities that we have already in our market, in our company. Furthermore, it will enable us to tap into revenue streams which are independent of the vehicle production numbers of our OEMs. We are convinced that our three-pillar strategy is aligned with the market demands and the developments that we have seen in the market and will enable us to achieve significant growth and margin upside. Now let's start with the first pillar, our component business. We have 25 years of experience as an ADAS component expert and offer a comprehensive portfolio with leading positions in radars and satellite cameras. As mentioned, this is our stable foundation. While we see that demand is growing, we also see significant price pressure for our components. To address this, we have already combined our cutting-edge technologies with a market-driven approach and cost competitiveness as a key focus of our development. Through our local for local approach, we have a strong customer base in key regions and leverage economy of scale on one side as well as market proximity. Thanks to our market success, also proven by our EUR 1.5 billion order intake in Q1 2025, our products are already qualified for level 2 to level 4 applications of almost all AD stack players in the market. Therefore, we leverage our strong foundation in components as a launchpad for our systems and services business. The second pillar of our strategy is passenger vehicle AM systems, which we recently put under the self-brand name. In the complete area of systems, we are using our hardware and software strengths and our integration and full-stack capabilities to make AD systems a reality. In addition, we are partnering with key partners like Umbrella to complete our technology offering to reduce time to market and offer a cost-competitive solution. Our scalable parking systems with level 2 to level 4 capabilities have not only won several customer awards, but also were named as a CES Innovation Award Honoree in 2024. Further, we had our first SOP now this year demonstrating the parking capabilities that we have in our company to the market. Our level 2+ driving solutions, we utilize distinctive SOC, system-on-chip partnership in the respective ecosystem to offer our ready-to-use system that a customer can implement immediately with minimal effort. We call it our turnkey solutions. More and more customers are interested in these cost-efficient full-stack turnkey solutions as it provides an attractive business case and a viable alternative to their in-house solutions. Now let's go back to China. As highlighted in the market overview, the Chinese market is unique and needs bespoke solutions. We have recognized this already some years ago and engaged in a joint venture with Horizon Robotics to offer level 2++ solutions specifically for the Chinese market. We had our first SOP in 2023, and we have been awarded already five projects. We are seeing initial interests for these solutions in other markets outside of China as well. To sum up our system offerings, we focus on scalable, cost-efficient solutions with a tailored SOC strategy for the respective markets and customers. The third pillar of our strategy is called as a service in the ecosystem of autonomous trucking with our exclusive partnership with Aurora. Before we go into the details of our value contribution to this ecosystem, let's listen to the message from our partner delivered by the CEO of Aurora, Chris Urmson. At Aurora, we believe partnership is essential to the success and scaling of self-driving. That's why we're excited to have AUMOVIO as a critical partner. They're engineering, deliver autonomous trucking hardware kits. We're set to go into production in 2027. In April, Aurora launched the first King trucking service on public roads throughout Twin and Texas and Arizona and across the United States over the next few years. Aurora and AUMOVIO work together throu gh an industry-first mileage-based hardware-to-service model, ensuring uptime-optimized, scalable autonomous driving systems for our customers. It's a meaningful recurring revenue stream for AUMOVIO. This partnership sets the stage for broader adoption of autonomous trucking and beyond. I'm thrilled to work with Philip and the AUMOVIO team as we scale Aurora's driverless technology to shape the future of self-driving freight and revolutionize the industry together. As shown by Chris, autonomous trucking is happening, and Aurora and AUMOVIO will be the first to industrialize and commercialize this solution with an SOP in 2027. Autonomous trucking is an attractive growth market with supportive fundamentals and addressing critical needs as we resolve the necessity of a human driver and having a positive total cost of ownership impact. Here is a clear commercial case for level four. Within this partnership, we leverage each of our unique strengths from Aurora and from us. Aurora brings in their software expertise and their customer access. We contribute with our hardware strengths and our fallback system safety expertise. Within the fallback system, we are developing a backup driving system designed to take over in the unlikely situation that the main path fails or becomes unavailable. Besides the hardware kits and the fallback system, we are additionally providing a 24/7 service model because uptime is, of course, key for total cost of ownership. This is where the strengths of both areas, AM and CSV, come together. AM benefits from CSV's extensive experience and competency handling workshop networks and offering corresponding services. Besides that, CSV offers AM access to further truck manufacturers for the possibility of additional autonomous trucking windfall business. The established business model is highly attractive for us as it scales with the miles driven and offers a recurring revenue stream, as Chris has mentioned, to our AUMOVIO. Let me recap. This is both an exciting and an economically appealing story for us. So far, I have explained to you why Autonomous Mobility and our three pillars is an exciting business, but now let's look at the second and equally attractive business in our business area, Architecture Network Solutions. In the OEM business, Architecture Network Solutions offers a comprehensive product portfolio of cutting-edge vehicle electronics and safety solutions, covering the Tachograph, our compliance device for the European Union, control units, telematics, instrumentation, and displays, as well as advanced driver-assisting systems. Further growth comes from the software-defined truck, HPC, high-performance compute, connectivity, and electrification, leveraging technologies from all across our AUMOVIO, but especially Architecture Network Solutions. This economy of scale and being able to utilize experts from other BAs allows us to also tap into innovative product offerings that we jointly develop with our customers. In the fleet and workshop business, CSV offers a comprehensive Tachograph ecosystem under the VDO brand, providing service solutions to fleets and workshops and creating value across the lifecycle of a truck. The Tachograph and the respective services ensure seamless compliance with European legislations and offer a substantial total cost of ownership benefit. In this highly attractive CSV market, we are in a top position, underlined also by our significant order intake of EUR 800 million in Q1 2025. Secondly, the ability to leverage our Moveo technologies and achieve scale benefits provides us with a hard-to-replicate competitive advantage in these very fragmented markets. Thirdly, we have proven ourselves as a trusted partner with a reliable supply chain in times of global uncertainties and utilize our deep-rooted expertise and market dedication to drive strategic co-development with our customers. Lastly, we constantly assess best ownership of our current product portfolio and reallocate resources according to our focus growth strategy. Hence, we are continuing to grow; we are continuing our growth story with having a healthy financial profile. We are strategically expanding our portfolio to increase our content per vehicle, and we are leveraging our Tachograph ecosystem to create value with our data-powered solutions to grow beyond the limits of vehicle production numbers. Now jumping back from our strong CSV business to the overall business area again. As just shared, AM and CSV are growth areas. On the path to this growth, we took and are taking strategic decisions for our future success. We are expanding into higher-margin businesses for AM and CSV together with our partners. For us, it's clear that we need strong partners who are experts in their respective fields. Further, we are constantly evaluating our portfolio and are phasing out non-profitable products and divesting businesses where we see a better owner. We are focusing on growing technologies and solutions going forward. We are also improving our cost competitiveness all across our businesses. We are streamlining our fixed cost and organizational setup, as well as optimizing product design with design-to-cost and cost-reduction measures. Let me recap. We have taken important measures to further enhance our cost competitiveness on one side, and we are taking and have taken strategic decisions, especially in our offering that is expected to drive growth and profitability going forward. How does this now all come together in a financial upside? The chart shows our sales and Adjusted EBIT development from 2022 to 2024 and our long-term ambition. Let's take a look at the development between 2022 and 2024 first. We have grown our sales from EUR 3 billion to EUR 3.3 billion, 10% growth over two years, whereas the CSV business benefited from high order intake years in the past, and the ADAS business was held back by delayed adoption in ADAS components by the delays of our OEMs. AM also faced a strong price situation in ADAS components. Within this time frame, despite these headwinds, we improved our profitability with dedicated cost initiatives while still investing in our growth areas. Where do we go from here? As described, we see significant financial upside. We plan to capitalize on the growth and the market development. We plan to further enhance our two reliable strongholds, CSV and components. Once our systems enter the market and our as-a-service business is launched, we will be able to harvest the benefits of our investments, and the new businesses are expected to translate into sales growth and margin upside. Already, we expect to reach break-even in the shorter term. In conclusion, I'm truly excited to see all these outstanding solutions from our business area hitting the road and shaping the future of mobility. Thank you very much. Thank you very much, Ismail. That's an interesting and exciting future we are heading to. Following our agenda, it's now the first of two Q&A sessions, and I would kindly ask the presenters of the first presentations to join me on stage. One organizational thing, we have two people running around with microphones here in the room, so if you want to ask a question, please raise your hand. Another topic, if followers at home, if you have technical problems following this session, no problem at all. A full-functional session will be broadcasted or will be available on our web page afterwards so you do not miss anything. Coming to the first questions, Christoph, and please also here, be fair, two questions per person to allow as many people as possible. Thank you. Both will be on autonomous mobility. The first one will be just on the margin improvement that you have highlighted. There you go. I am sorry. I am sorry. There you go. Is it fair to assume that it is towards the high single digits, mostly back-end weighted? You said break-even is probably reached in the shorter term, but a more meaningful improvement is closer to the end of the decade. Yeah. The second point would be just, is there any more significant margin difference between the ADAS and the CSV business that you could share, or is it too early to comment on that? Thank you. Yeah, two things. I mean, the cost measures that I've described and that we have diligently implemented help us in the shorter term. That is why we improve our margins and will continue to improve our margins. Of course, the upside potential really comes from the higher margin system and especially as-a-service business that we then launch in 2027 and be yond. To answer the second question, our value contribution in CSV is quite high, and our expectation to this market, because we are also dealing with a very fragmented market, which comes with higher gross margins, but as well, a lot of efforts that we have to engage in order to serve these markets is higher than overall that we have overall in the other area. Naturally, we are expecting higher margins from CSV. Thank you. Maybe Thomas in the midfield. Thank you very much, Thomas. Two questions, please, for you, Philippe. The first one is we still do not have a lot of visibility on your business, but from the helicopter view we have for the time being, I have been surprised to see how much of an acceleration we have seen over the last six to 12 months on the cost reduction and headcount reduction. When we have the memory of seeing Vitesco moving from being an ugly business when it was within Conti to being substantially better independently, can you explain why and how everything seems to have dramatically changed in terms of headcount and everything we can see from the consolidated basis over the last two, three, four quarters? Why it did not happen earlier and how fast should we see it in the coming quarters? That is the first question. The second, you pointed to the incentivization of management, which I think is great. Can you say how many employees are involved in this bonus scheme where effectively a lot of the financial incentives is tied to the success of the next 18 months, which I think is great? Thank you. Yeah, let me try to answer. Why have we not been doing things earlier? We have undergone a very dramatic development in our industry. We have seen that we have been in the chip crisis for quite some time, and we have started already relatively early in 2020, 2021 to think about how do we need to set up ourselves into the right direction. I come to that in my second part, talking as a CFO to you, how difficult it is to reorganize and restructure R&D, because you have a lot of investment done into R&D, and that's the heart of our business. One out of three people in our organization are R&D engineers, and this is what drives our business forward. Nino was perfectly explaining that. We have been a subject or the result of a buy-and-build strategy over many years, which continentalized it, and we bought many companies because of capability, because of technology, because of R&D engineers driving our business forward. As this has been one of our major cost items, you need to prepare yourself in order to be able to reduce the business. The cost, you first need to focus, and you can become effective, and then finally, you need to become efficient. That is where we have been working. Secondly, that is one major part. We see that we have been taking out 3,000 R&D guys in 2024. I mean, Jean-François has explained how he has turned around his business, which serves as a good example for the rest of our business areas as well. How do we become better? Secondly, we have taken our plans over the course of the last years, and we have been relatively aggressively cutting out overhead costs with a huge project which we initiated, where we are very much focusing on improving our processes. I think these are the steps which we have been doing. We have, as a management team, focusing on that quite intensively. We have prepared ourselves, and then we have been executing. I think that's maybe the difference. How many employees are involved in the bonus system? I think the first and foremost important thing is that our entire bonus system, which starts at the Executive Board, the KPIs, as well as the different parameters, are driven down to all executives in the organization. The bonus scheme is top down to the bottom, exactly the same for all our leaders and executives. The spin-off bonus is only going to go to a certain amount, somewhat mid-digit amount of senior leadership, which has a significant responsibility to bring our business forward. Thank you very much. Next question, Horst over there, maybe on that side. Yeah, thank you. First of all, on Architecture Network Solutions, it's impressive to see basically the recovery of the last two years. At the same time, I realize that when I look at your revenue target within Architecture Network Solutions, the revenues are not growing anymore that much, I think. Or the margin is not growing anymore that much. I think that's better. I know that I think in the past, you have talked sometimes about your contract with Volkswagen MEB platform. I think that belongs into that business. When I think about the change of the E architecture to zonal domain E architecture, can you give us any example maybe where you have got bigger customers next to Volkswagen and reference customers that you can tell us maybe, or have you got orders or business basically with also new tech players? Because my understanding is they do the business that you do themselves. They think they can do it better than you. Number two is on autonomous mobility. Coming back on that, what you said before, you said it is more back-end loaded than margin improvement. When I look at the business model, do I get it right that you have got a lot of upfront investments to do, and then basically later on comes profitability recovery? My question was, what comes in between when you do all these investments? Initially, it's a big loss-making business, this business with Aurora, and it turns just profitable late stage, or how should we think about this business? I guess I'll start with saying this. Indeed, the growth is not truly impressive, but there are many reasons and good reasons. First, we were focusing on acquiring very high-quality and financial KPIs business and not growing for growing. We want to always ensure we generate value, we create value, which was in the past sometimes not really in our focus. There is another reason that some markets' SDV is delayed, and sometimes a lot of, I guess you know, some OEMs start and then they stop the programs or they reduce the amplitude of the programs. The sales are not there. All of this is part of our perspective. As I said in my presentation, we take a very conservative adoption of the SDV. Why? Because all what we acquired in the last years has a good quality and helped us to bridge this transition with our financial performance. Where we are in a very good situation is that we do have the products, the traditional one, and if there is a delay of the architecture, we continue to deliver these programs, and we make money with this. We prove it. While we prepare ourselves, and you mentioned some platform where we were the first one in SDV, we capitalize on the experience and prepare ourselves, as I mentioned, with our structure to be competitive in this market. Nobody can really predict or we are not able to predict when the growth will come suddenly, but we prepare ourselves for this. The next point is that we say it's long-term. Long-term here is five years. Five years is in Europe, in North America, the cycle of next generation. It's a little bit short to see what might be in the six or seven years later. Does that answer your question? Reference customer. Reference customer. Again? Yeah. Reference customer, we do have customers in China. I can mention Xiaomi, which is, I mean, we are very proud to be with this successful new OEM with whom we've learned to develop this kind of high-performance computer in 18 months from zero to SOP, which is one of them. We do have with another one. As you can see, I mean, with Xiaomi, we have in both. We have the fast growing and the new entrants which are working with. Exactly. Tom, now come to you. Sorry. Yeah, on topic. Yeah. I mean, the financial profile of this is not much different than ordinary OEM projects where you have base development to develop a product upfront that you bring into the market. It's really not much different. I mean, considering that we have windfall business, and I mentioned that in my presentation, we are the pioneers, and there are a lot of competitors of Aurora and such that are now following, and we are in a good position to monetize our developments, be it the R&D or be it the cash consumption to put the sensor pods in the trucks. We have different means there to have additional opportunities. I think important is that the profile is the same. The magnitude is a bit different. That's why being the pioneer in autonomous commercial trucking requires quite some pre-investments. Okay. Thanks. The next question, gentleman over there. I wanted to ask about the opportunity of the as-a-service business in the future. You mentioned the other autonomous trucking. You haven't mentioned robotaxi. Is that an area where you think that you could offer some sort of as-a-service per-mile component and software-integrated solution as well? How else do you think about that? I also did want to ask, of the EUR 6 billion revenue target in autonomous mobility, how much of that step-up is the Aurora contract and the as-a-service business? The economics are quite similar. You could engage in robotaxis as well with the same or similar model that we have, like bringing the hardware in plus the fallback system. At the same time, we want to focus right now on autonomous trucking because for us, it is the most obvious business case to take the driver out, having the driver shortage, and so on and so forth. Most promising. When you talk return on invest, it is also most promising from the yields you can get in this business model in the earlier years. Therefore, we refrain from going into a second robotaxi L4 business, but the same mechanics, the same economics could be applied as well. We are, of course, if we have players who are interested in our great sensors, we are delivering them according to our normal conditions and our traditional business models. What you see in the EUR 6 billion, what I can say is that we are growing in each and every pillar. We are gaining market share in each and every pillar. The as-a-service business, from absolute terms, is the majority of this growth. Looking at the agenda, I mean, it's 3:45. This was the first Q&A session. We will have another one as said. We have a short pause for coffee, and then at 4:00 P.M., we start again. Thank you very much. Ladies and gentlemen, please take your seats. Thank you. Good to have you all back. I hope you enjoyed the coffee break. One remark. If you haven't done so, there's still chances to sign in for our experience here. After the sessions, please feel free to do so. After this break, getting more excited, and who could be better prepared for excitement than use experience, so the exciting differentiator. Kindly ask Pavel to join me on stage. Thank you, Michael. Yeah, a bit difficult after the break, right, to get back. Good afternoon also from my side. Warm welcome. As Michael said, my name is Pavel Prouza. I lead the user experience business area UX. I have been with the company since 2003, mostly working in various areas of the automotive sector. Taking on this role has been not just exciting for me, but also for my family. My kids see our displays in the cars and finally understand what I do for work. Finally, I even got to be again a cool dad. Now I would like to show you why UX will be exciting and a strong contributor to our mobile success and how we will support driving a shareholder value. A few years ago, cars were all about horsepower, engine noise, and car design. In today's world of electrification and software-defined vehicles, this differentiator has shifted. It is all about user experience, and this is our strength. UX is an exciting differentiator and increasingly driving the customer buying decisions. What is the user experience business area all about? We are one of the global leaders in display technologies. We have transformed from market leader in analog digital clusters to number one supplier in display solutions. As you can see on the left, we have a comprehensive product offering enabling differentiation in user experience. We offer cutting-edge, innovative display solutions, often combining multiple displays. Now back to the highlights. I will focus on five key areas today. One, we are the market leader in structural attractive market. Displays are getting large and more complex, and therefore offer higher value to us. Secondly, we are the leading independent automotive display provider. We are independent from the display panel producers and can select and integrate from a broad range of suppliers to offer maximum flexibility to our OEM customers. Thirdly, this enables us to offer the full range of display solutions, from volume products to high-end premium displays, all at scale and high-cost efficiency. Fourth, we have a well-invested asset base, which will drive further efficiencies and allow for upside potential. We have implemented the mega factory concept, which is in progress to drive significant scale and standardization benefits globally. Lastly, our attractive business is expected to translate into attractive financials. On the back of structural market growth and book-increasing business, we laid the foundation to deliver profitability by focusing on cost management, efficient operations, and driving economies of scale. Let me now dig a little deeper into those five highlights and start with the first of being one of the global market leaders in attractive growing markets. We are number one in display solutions, and we are number one in head-up displays. Firstly, the display solution market is expected to grow by high single digits over the next years, driven by large display sizes and increased adoption of multi-display solutions. Secondly, head-up displays, which were initially developed for premium vehicles, over the next year, we expect to benefit from increasing market penetration in both the premium and mass market and from new product introductions, like the one on the picture on the right side with the Scenic View head-up. This development is expected to result in double-digit growth. Thirdly, digital clusters is a transformation business as customers are moving from high-performance computer-based solutions. We will continue to support these customers who want such solutions, but they'll manage our portfolio in line with their transition plans. While there are regional differences, all regions contribute to the growth, which aligns well with our global footprint and our business model. Now coming to the second point, we are one of the leading independent integrators for display solutions. This is based on two pillars: independence and integration capabilities. Why this is important? On the first, independence. We are vastly independent from display panel producers and have more than 10 qualified display panel suppliers in our supply portfolio. Not only here, for each component, we have multiple sources. This gives us full flexibility in make-or-buy decisions, just how it is most cost-efficient and valuable to our customers. Second, integration capabilities. We can tailor our offering to our OEM customer needs and can address a wide range of demands. We can address nearly all technological requirements in-house, but we are also flexible in integrating partner technologies through our broad network with more than 50 active partnerships. For example, the invisible biometric display, which is part of our product demo today. Besides our own technology, we integrate a laser-dot projector from our partner, Dynamics, and have innovative new OLED panel development with our partner, Visionox, enabling the innovative functionalities. This approach is effective, and it allows us to have the best products for the customer's request with reduced costs, increase resilience through a low dependency on any single supplier, offer cost-competitive solutions, and serve both the premium and volume market at competitive terms. Our independency and integrated approach I just outlined allows us to be successful across the full market spectrum from premium to volume markets. First, we can offer cutting-edge high-tech displays. Our displays are frequently awarded for the innovative features, as for example, the mentioned invisible biometric sensing display won this year the Consumer Electronics Show Award. We are often pioneers bringing new technologies into the market. For example, we were the first in mass production with OLED and pillar-to-pillar displays, both milestones for automotive displays. Our premium displays excite the end users and are therefore a key differentiator for the OEMs. Second, we can offer cost-competitive solutions for the volume market. Here, we fully benefit from our global setup and economies of scale to achieve competitive unit costs. For these displays, we innovate on the cost side. For example, back cover solution out of stamp or hybrid molding materials. Also, these displays are in high demand. Our key strength is the ability to serve a broad market spectrum with maximum flexibility at competitive costs. This is reflected in our strong order intake performance with over EUR 10 billion order intake just for the displays over the last three years. One of the key reasons why we can successfully manage the full spectrum of displays at scale is our footprint. We have a well-invested production network in place. We have made significant investments over the last years and intend to capitalize on them in the coming years, helping to drive our ambition. We have six modern mega factories in all three key regions, all located in Best Cost Countries. They are twice the size of standard plants and highly efficient. They have the identical setup globally and standardized production lines. These production lines we can reuse and multi-use globally, showing significant results in saving substantial investment costs and leveraging efficiencies. Nino described earlier how important it is to achieve standardization and high utilization of the manufacturing sites, and our mega factories are a clear example for this. On our standard plants, we will continue to streamline, and I will get into it in a moment. The identical production setup just described also allows us to transfer learning from one location to another and thereby achieve better commercial results. Through this transfer, we have already seen a quick improvement in the scrap rates from 5% in last year, where we had several launches of new complex products, to 3.5% in the Q1 of this year. We see reference rates in Asia as low as 1%. We are working on reaching this globally, supporting our long-term ambition. Hopefully, you see our production offers significant upside. On the next two pages, let me summarize our four very tangible key drivers that we are executing to deliver on our upside potential. First one is footprint optimization. As described earlier, we need to ensure high utilization of our mega factories. Right-sizing of our footprint and reducing complexity is a key priority. Over the next 15 months, we will exit three out of the six standard plants, two in high-cost countries, and shift the volume to our mega factories over time. These phase-outs have been agreed with the works council and are fully in execution. After this, all our plants will be in Best Cost countries. Second, cost management. Besides utilization, cost reduction is our key focus. Standardization and transfer of our performance improvements in China to Europe, coupled with right-sizing of our resources, are expected to drive significant impact. We can demonstrate that our measure works. From last year to this year, we have already significantly reduced costs and have the right measures in place to continue to do so. Two more key drivers: third, portfolio management. We review our project portfolio and do evaluate to exit and non-sustainable project margins. In such a case, we renegotiate with customers or end the production of these projects. We can then reuse the lines for new and more profitable projects. Lastly, leveraging scale. We will continue to drive value with our premium products, where there is more to come, but also expanding our volume market business, especially with Asian OEMs. Our recent order intake with share above 50% from Asian business confirms our cost competitiveness and allows us to balance our portfolio. Our cost competitive setup, innovation capabilities, and strong customer access will help capture both growth and value opportunities. Now, like the other VAs, let me summarize how the UX story translates into financials. Here is a short overview of our sales and Adjusted EBIT margin. Let me first explain the development from the years 2022 to 2024. As said at the beginning, we had some challenges. Over the last two years, we have been in a transformation phase. We repositioned our product portfolio for growth opportunities in advanced display solutions and head-up displays, but product launches were delayed. This explains the sales decline. Similarly, our margin was impacted by temporary issues and transformation impacts. There have been three major topics: launch delays of high-value products driven by OEM market introduction shifts, impact due to lower operational performance mainly driven by high scrap and startup cost, where we have significantly improved, as just explained, and double structural costs on the manufacturing side. We ramp up our mega factories while ramping down our standard cost plans. This transformation will be finalized next year. As seen on the page before, we have already improved fixed and variable cost performance in our plants by around 4% in total, resulting in much stronger financial performance this year. Going forward, let us take a look at our long-term ambition. Our target is to grow sales above EUR 4 billion and to achieve an Adjusted EBIT margin in the mid-single digits. We have already booked a significant portion of attractive business, which will convert into revenue growth. We believe to benefit from the structural tailwinds from the market, asking for large, more complex display solutions, driving our content per vehicle in both premium and volume markets. We are well-positioned with Asian OEMs, which are expected to overproportionately grow the global car production volume. Now, on the profitability, we have a clear path to our target. We are leveraging our purchasing power and multi-supplier strategy to improve the economic equation. We are advancing operational excellence and plant efficiency while optimizing our global footprint via our mega factories. At the same time, we plan to further enhance R&D effectiveness and cutting structural costs, creating a stronger base for sustainable and profitable growth. In a summary, UX is the market leader in a structurally growing market. With strong integration and technology capabilities, full independence, and well-invested global footprint, we are resilient and best positioned to capture future growth and deliver higher profitability and cash flow conversion. UX will be the exciting differentiator and strong contributor to our mobile success. Thank you very much. Thank you, Pavel. What an exciting future. From this place now to another exciting topic: safety and motion, the exciting powerhouse or efficient safety powerhouse. Please, I kindly ask Boris to come here on stage. Thank you very much. Thank you, Michael. Yeah, good afternoon. My name is Boris Mergell. I'm responsible for the business area Safety and Motion. I joined Continental in 2003. I have a PhD in physics, and I've held numerous positions in R&D with a focus on safety products. In fact, I'm standing here today because of my former car and the excellent safety features, despite being in a very severe car accident. Somebody was crashing into me, and I was very lucky, and I just walked away with only minor injuries. As a result, I'm even more enthusiastic about our safety product offering, and I'm fully committed to work towards our Vision Zero, which strives for zero fatalities, zero injuries, and zero accidents. I'm very much looking forward to letting you experience our latest brake technology after we have finished the presentation part of today's Capital Market Day. SAM offers market-leading products to fulfill our just-mentioned Vision Zero. Most of our products make your driving safer, while our electronic suspension systems make your driving more comfortable. Firstly, the focus of our offering is on our market-leading brakes, consisting of electronic brake systems and traditional wheel brakes. We supplement our brakes with a wide range of leading active and passive safety systems, which you can see on the left. These span from airbag control units to sensors and air suspensions, all building on the expertise that we have gathered in automotive safety over many decades. Our business area also includes an attractive and stable aftermarket business, especially for brakes. Safety is a critical requirement in every region that we serve, and safety regulations are highly complex and require deep local knowledge, which I will speak more about shortly. Consequently, we have a global and local-for-local footprint, always close to our customers. I will take 15 minutes to explain to you how we are driving a safer tomorrow in every journey and every moment, and why we are an attractive business with a strong financial upside potential. One, we are active in a highly resilient market. Complex safety regulation, scale of the leading players, and a zero failure tolerance in safety technology create high barriers to entry. Two, we have market-leading products differentiated through strong engineering capabilities, the highest quality portfolio, and local proximity to all our key customers globally. Three, we have been a long-standing, reliable safety partner for our clients, meeting the complex safety standards that only few can fulfill. However, you are probably aware of the MKC2 brake issue, which we have taken very seriously and for which we have developed hardware and software solutions. I will address this in further detail later. Four, we are continuously innovating and remain at the forefront of the next generation of safety products. Five, we are not satisfied with our 2024 result of 3.5% return on sales. Rigorous cost management is key for us to return to our former level of profitability after several challenging years. I will come back to our homework in this area. We know what to do. Let me start with the attractive market we are active in. This is rooted in two pillars: a resilient business model and high-entry barriers. Basically, it is all about complex technology and scale. Starting on the left-hand side, our products are indispensable. Every car needs safety technology, irrespective of the region, market segment, or powertrain. The electrification of the powertrain marks an additional upside for us. Battery-electric vehicles are more than 20% heavier, and they require a combination of recuperation with braking. This is driving the demand for more air suspensions and technologically advanced brakes. For our electronic suspension systems, we see a substantial order intake growth in 2025. On the right-hand side, safety technology is, rightfully so, a highly regulated market. Our products need to fulfill more than 1,000 regulatory safety requirements and even more customer requirements. Our local presence and decades of experience in electronics, mechanics, hydraulics, and software allow us to manage this complexity globally in the most efficient way. In addition, safety is a no-compromise market. Customers expect zero defaults, and hence, a failure during a launch or a startup phase is not tolerated. This can only be achieved with a strong level of experience combined with significant upfront investment. As a result, the market is stable and consolidated, with the top four players typically capturing around 60% of the market. Only very few players can fulfill all those technology requirements at scale, and our move is one of them. With our global platform, we serve virtually all top 30 OEMs worldwide, and as shown on the left, we have high market shares of 20% in each product category, which makes me very proud of this testament to our strong product portfolio. Now, let me walk you through our key differentiators. Firstly, we are present in all key regions close to our customers. As I outlined earlier, it is paramount to understand each market and the associated regulation. Therefore, our footprint is well aligned with our sales split. Secondly, our technology know-how includes a combination of hardware and software excellence to offer these complex safety systems. More than 7,000 employees are active in R&D. What many do not know is that more than 2,000 of these are focused on software. This serves as the knowledge base needed in our broad product portfolio and for system integration into software-defined vehicles. Thirdly, our customers value our strong commitments to safety excellence. We take our quality very seriously and have the ambition for zero defaults. Now, to speak to our quality commitments and resulting visibility, let me come back to my initial statement that we are a long-standing, reliable safety partner. Product quality is of highest importance for our offering. However, we have recently experienced quality issues with our products. In early 2024, our brake product MKC2 had a malfunction resulting in recalls. This does not reflect the standards we set for ourselves at Continental. We have taken comprehensive steps to address the MKC2 issues. In particular, we worked around the clock to find a robust and efficient technological solution, and we learned our lessons, and the entire organization is fully committed to meet the quality expectations of our customers. As a result of our efforts, we have continuously increased the number of MKC2 customers. As you can see on the left-hand chart, our MKC2 sales will more than double from 2024 to 2026, reaching a total of 23 OEMs firmly trusting in the quality of our MKC2 brakes. This gives us confidence that we have taken the right measures to regain the trust of our customers. In addition, across all products, you can see on the right-hand side that our sales plan is already covered with our secured order intake to a high percentage, like in previous years. Next, we have the abilities to continue to remain an innovation leader. We believe the players who can master the shift towards next-generation safety systems the fastest and most efficiently will exhibit significant profitable growth. For our most important product, braking systems, we see a gradual shift towards dry brakes. Our full dry brake systems do not require braking fluids. That is, by the way, why we call it a dry brake. These offer customers higher performance, cost savings for vehicle systems, and reduced complexity. This makes dry brakes ideal for new vehicle architectures and is a win-win for both us and the customer. We are pioneering this evolution. As you can see on the right-hand side, we have the required capabilities, and we were the first to market with one-box systems and have been the first awarded for semi-dry brake systems. Our full dry brake prototypes have been extensively tested by our customers this year in our winter testing locations with very positive feedback. They have since asked us to prepare for upcoming RFQs. Now, let me walk you through how we plan to outperform the market in all regions, driving our top line and upside potential. Across all markets, we carefully repriced our offering to support sustainable price levels and to fully recover inflationary costs. Next, we aim to generate upside by rebalancing our customer mix. Firstly, as you see on the slide, Europe and North America will continue to be our strongholds. We will maintain our relationships to remain a safety partner of choice. Secondly, we will be able to gain global market share by intensifying our relationships with Asian OEMs, especially in India, Korea, and China, which are expected to exhibit higher growth than other regions. Thirdly, China is an explicit success story for us, high teens' market share today, and the continuously improving market position over recent years. Chinese OEMs particularly value the premium nature of our products because of the importance of safety to the end consumer. As a result, we are continuously increasing the share of sales with Chinese OEMs in China. We doubled the sales share from 2020 to 2024. In addition, Chinese OEMs are already expanding internationally. Therefore, they need a partner who understands the local safety regulations. Again, we are ready to capture this growth. While our market position is strong today, there is improvement potential for our current financial standing. Increased supplier dependency for semiconductors, increased inflation, and overstated growth assumptions coupled with the headwinds in production volumes in the automotive industry explain our current financial results. To address these, we are currently executing a clear cost improvement plan. First, we are executing a focused cost management program striving to improve our fixed cost structure. We are right-sizing our footprint. Three Plants have already been closed since 2021, with further plant exits in preparation. Philip mentioned that we will sell our Trump Brake facility in Italy, which also helped to streamline our product portfolio. We have significantly reduced our workforce, resulting in EUR 80 million fixed cost savings since June 2023, and further reductions of EUR 75 million are in implementation for 2025. We also plan to increase the share of best cost countries in R&D to support our long-term ambition of having less than 8% R&D to sales. Second, we initiated measures targeting the cost competitiveness of our offering. This shall help us to increase the profitability of existing business, and it safeguards future business by ensuring competitive price levels. We reduced our material costs by more than 3% in 2024, and further redesigned cost programs are in the pipeline. Our multi-sourcing initiative of critical components is expected to reduce further our material costs, and it will improve the resilience of our supply chains. We continue to improve our plant operations, especially in Mexico. Earlier today, Nino described the benefits of internalizing the semiconductor design competency. SAM is piloting this initiative, and we target around 2% material cost reduction. All these measures will take us back to our historical growth and profitability. I will summarize how our equity story translates into our sales and Adjusted EBIT margin historically and going forward. Let's look at the development from 2022 to 2024. Temporarily lower call-up volumes, an unfavorable customer mix, and a slower ramp-up of new technologies, plus only partially compensated inflationary costs weighed on our top-line recovery in 2024. We managed to hold our profitability roughly stable despite lower sales and the impact from the quality case. Concerning our long-term ambition, we are targeting more than EUR 8.5 billion sales, with a mid to high single-digit margin. How will we achieve this? On the top line, we aim to rebalance our customer mix towards Asian OEMs. We set up to improve our product mix with more electronic suspensions and one-box systems, and with the expected launch of our dry brakes. Meanwhile, the most important driver of our profitability improvement is expected to be our ongoing rigorous cost management. We will continue to take measures to improve the material costs, we optimize our footprint in manufacturing, and reduce our R&D to sales ratio. With this, we are able to make a clear step in the direction of our historical profitability. As you can see, we have done our homework, and we know what to do. We operate in a very resilient and attractive market with high barriers to entry. We will continue to gain market share, especially in Asia, and drive top-line growth through customer and product mix improvements. By rigid cost management, we will recover our historically attractive profitability. Thank you for your attention. Thank you, both. Boris, thank you very much. Now, after these exciting presentations about products and offering, we now segue to more financial numbers. I would kindly ask Philip to come to the stage. Yeah, thank you, Michael, and thank you, Boris. Eighty-five slides later and two and a half hours, let me try to bring all pieces together. I guess you have now been filled up with a lot of AUMOVIO details, a lot of ideas, a lot of directions which we have set, and a lot of things what we are intending to do in going into the future in order to remain a company which is going to be a very successful one in the market. Let me now show you our financial strategy. Our financial strategy is based basically on four pillars, not on five. There are many others. The financial strategy is based on four pillars. The first one you have seen, we have been working significantly over the last two years, and we discussed that during the Q&A on headcount reduction. We have a lot of programs in place. We have basically touched each and every stone. We are now needing to turn on the next step. You remember that I said we turn from lead focus perform into lead transform and deliver. We are now bringing to our first pillar growth into perspective, and we want to bring the upside potential, which we do see very much combined with margin potential into our P&L going forward. The second one is that we still work on our margin, being it the contribution, being it the gross, or being it finally the profit margin, something which everyone of our team has been touching. One thing which we very much focus on, which you're going to see during now my 15 to 20 minutes, is our cash flow focus. We're not only working on cost, we're ensuring that what we turn into profit, we turn also into cash. There are a lot of programs on the working capital side, on the asset management side, where we are going to leverage our existing asset base going forward. Lastly, I will also talk about the capital allocation to support our value creation going forward. Very clear, we have tried to lay out very transparent targets and what we do for quite some time now. I think that's something which we have shown to the outside world we know how to execute. We have a very clear focus. We have a program. We have an objective, and we execute towards that program no matter what. Let me run through these four pillars. The first pillar, growth. I mean, we have all seen, we have discussed that over the course of today, our markets are not high growth markets anymore. That is something you can also see in our sales development. We have been focusing a lot on phase out of low margin projects. You have seen that we have managed that, and we have mentioned that several times. We have been working on our portfolio, but we also see that the market is not in our favor, and that is why we have also seen a slight decrease of overall sales over the course of the last 12 months. What we have been doing is the things which we have not stopped, which we have not given back, we have repriced in case we have seen that we do not create value with our projects. That's why you see here successful repricing, something which during the course of the second quarter we finalized. We have meanwhile repriced with all our customers our contracts, and we now look into growth opportunities going forward. These growth opportunities going forward, you see already in the first quarter, we have significantly gained more orders in the first quarter 2025 than we have gained in 2024, then turning the trend which we have had in 2024 in total order intake around and ensuring that our orders are going to go into the right direction, going to go into the right technology, and are going to be value creative going forward. We have very strict and strong KPIs looking at new orders. Every KPI, every order needs to overcome a specific hurdle which ensures that every business we take on is going to be value creative. That's why our growth is not as much as we have been showing and explaining over the course of the last years because we are only gaining selectively new businesses, ensuring that all new businesses are going to turn into a profitable business case. We are going to, we are confirming our guidance for 2025, although the sector Automotive has a bit of a different setup than our AUMOVIO in the future, but the EUR 18 billion-EUR 20 billion, although markets are not as much growing as we have thought, we are able to confirm. Going forward, we looked into the midterm and said we are going to reach EUR 20 billion-EUR 22 billion sales. We expect a slight recovery of the market. We have seen what our trajectory in terms of LVPSF is looking like, and we think that until the long-term ambition, we are going to reach more than EUR 24 billion sales, highly driven by our very much growth-oriented businesses in Architecture Network Solutions and in Autonomous Mobility, which we discussed intensively over the course of the day today. We also see in the other business areas growth chances, but not at the same pace as we do see it there because there the disruption, the change towards the software-defined vehicle is very much imminent. As we do see new opportunities, content per vehicle growth in these areas, we do see that we have good chances to win market share also in the Safety and Motion arena, something which Boris explained. Let's go to the margin. Let's go to the second pillar, and that is one chart which we are particularly proud of. You can see the trajectory where we have been working quarter over quarter on improving our profitability. As Olaf Schick already said, the first quarter, we managed to get to 1.6% of EBIT margin, and we expect the second quarter to be at the upper end of our guidance for 2025. You see, we do see the results of our constant work. We do see that things are running into the bottom line, and we do see that the projects which we are doing are making us stronger. It's not only a matter of getting costs down, it's a matter of getting our organization much more robust into the future. That's why we optimize our footprint. That's why we're looking at additional opportunities. That's why we are also constantly looking into each and every headcount, leaving our organization of whether it needs to be replaced, and if it's going to be replaced, why is it not being replaced in a best cost country approach. These are the things we are focusing on. If we are looking into the different arenas, if we're looking into gross margins, how are our plants, our variable costs working, you see that we improved by 270 basis points between 2022 and 2024. I was already talking about the new product ramp-ups. I was talking about our portfolio management, talking about repricing. We have closed nine plants, and I think the most important thing is that we look into each and every plant, how do we get better, how do we get better. We have seen on the variable headcount side over the course of this year that we have made big steps forward. We're getting our operations excellence programs into our plants and making by best to best comparisons each and every plant more fit. If we're looking into the overhead selling, logistics, and administrative expenses, that, and I mean, we were talking about already in the morning about the synergies, that's something where we are going to see some synergies where we also have a clear target. Out of this spin-off, we are going to get stronger also in terms of costs out as we went in. We take two years to absorb the additional costs, and then we assume to going to be even better in terms of cost to sales. In total, we have reduced only in these two categories more than 2,000 fixed headcounts. That leads to the fact that we have a significantly faster and more agile organization. We turned around a third of the senior management team, and we replaced only 5%-8% of it. We have taken out two layers, and we were very much focusing on getting our processes under control because we are convinced that only with robust processes, we are able to make our business stronger and more resilient. That requires less management, that requires strong setups, that requires lean organizations. That is where we have been investing into, that is where the management team stands for. That is where we think we still have a huge chance to get even better in the future because the process, the right process, is helping you to manage the organization as a complex organization like ours into the right direction. Now comes the most difficult chart. I was already in the Q&A telling you that the biggest challenge we have is managing R&D. As you see here, we have in 2022 and 2023 basically not touched our total workforce on the R&D side. We have already started in 2020 and 2021 with R&D excellence programs. That takes time until you are able to roll it into the organization because we are an innovation company. We live from products. We live from technology. Taking out just R&D costs, and that is what we always heard over many years, you have too high R&D costs. We have invested a lot. Ismail was explaining what we are going to do. We want to be the pioneer in commercial trucking. This is something where we see a lot of opportunities. The first thing is what you need to do, you need to focus your teams. Afterwards, you need to make the teams effective. The last step is making it efficient. We have accrued for all the necessary costs for the next 3,000 employees, which we want to take out over the course of the next 18 months basically. We are very much convinced that we are going to do that without losing any innovation potential. As you can see, we have done a lot, and we are very much committed, and that is something you can believe me, that is something which we do not take easy. We sit on a biweekly base together and discuss what is possible, what can we do more in order to be more efficient. Because we also know that artificial intelligence, Neo was explaining it, we have great chances to be even more efficient. These are the things we are working on, and these are the upside potentials we are going to show over the course of the next quarters and years. That is why we are very much convinced with our outlook to reach then midterm 4%-6% and long-term 6%-8%. We do not overpromise. We deliver. We are convinced that we are going to deliver. You might be a bit, I see, and still need to convince some people, but we are very much clear on that because we know the by far major part of what we do needs to come and will come from our self-help measures. You see that here. The upside levels, and that is then the long-term. The upside measures, we see that we are going to see with the project launch of commercial trucking, with the project launch of additional software architectures, that there are additional potentials and projects going to come. We have evaluated, and we have seen why we think the different business areas are going to get into the right direction. We have also, and I think that's something which we wanted to show you today, it's nothing comes stems out of the blue. If we are looking into changing business area, we have demonstrated with Architecture Network Solutions, we are capable to do so. We have seen that with the profitability of our business areas, we still have some things to do, but we have great chances, and we have already shown that we have the execution abilities to do so. I was talking about cash flow and the necessity to show that's something which I tell my organization on a very regular basis. We need to be, and we will be able already in 2024. We were able in 2025. We will also be able to be cash flow positive. That's although we had and had already quite significant restructuring cash outs. I mean, 15,000 employees are not going to go out for free. We have invested into our organization, and we were still able to manage a positive cash flow. We have also set up a lot of programs, project teams working on inventory reduction. If you look back, and some of you are following Continental for quite some years, before the financial crisis, before the, not financial crisis, I do not want to go so far back, but before the health crisis, the corona crisis, we had been at the semiconductor crisis. We have been the masters of inventory management. We managed in this high double-digit turn rate our inventory. We still have and have today a lot of things which we carry over from the semiconductor crisis. We have a huge chance to manage our balance sheet significantly better. We have set up and reduced already significantly our overdues, and we are working on improving our payment terms on the purchasing side. We do see still in our balance sheet a lot of chances, and our clear target needs to bring as much as possible out of the EBIT into the free cash flow. We have been talking in the beginning about capital expenditure. You have heard Pavel, where we did huge investments into mega factories and user experience. As you see here, we have managed down our capital expenditure from 7%-5% to below 5% already in 2024. As we have a very well-invested asset base, we are very much convinced we can manage that also in the long run with less than 5%. You also see that on the working capital side, as I was mentioning, we have great chances to improve here and to become better in the long run. If we are looking into one of our major KPIs, which is combining profitability with asset management, and that is the return on capital employed, where all our figures come together, our strategies of growth, of margin, of capital discipline come together, we do see a significant upside potential. In 2024, we have managed 3%, and already midterm, we are convinced we are going to get to 12%-15%, and will then soon after reach more than that going forward. You have seen our management. You have seen our measures which we want to implement on the profitability side. We are working on our capital expansion. We are working on our asset management. We are very much convinced that this is something which we are going to show, that our value creation ability and focus is going to come forward, and it is going to show their signs. If we are looking at capital allocation, I think we are very grateful to our prior colleagues. We are grateful to the Supervisory Board. We are grateful to the Executive. I am grateful personally to my dear Executive Board members, which were willing to give us significant support to go into our independency. We are going to be, at least according to all what we know and according to all what we think are the main peers in our industry, the only one having no financial debt. Even having a financial cash position of EUR 1.5 billion, taking over, of course, our net pension provisions because these are the ones we want to earn ourselves, and the lease liabilities going forward. If we're looking into value-oriented capital allocation, then we are very much convinced this industry is not going to change in the short run. We are seeing a lot of challenges. We are seeing disruptions. We are seeing transformation specifically also in our portfolio. We are very much convinced we need a strong balance sheet going forward and until we finalized our restructuring efforts. We have committed ourselves to reach and to manage our business with only 5% capital expenditure. We want to get to less than 9% R&D while also continuously reviewing our portfolio and look into where are we good, where can we be better, and what can others do better than we can do. That will lead to our also in the midterm, we are going to pay out a dividend of what we think is customary in the market, at least of being of today, 10%-30% of net income. If we summarize all what we heard today, our financial targets, you see here, how do we want and where do we want to get in sales above EUR 24 billion? Where do we want to go in terms of EBIT margin, 6%-8%? Where do we want to go in terms of return on capital employed, 16%, and by that ensuring that we are value accretive year after year? We are going to pay out then in the midterm, 10%-30% of our net income. Let me quickly summarize. What is now the targets for our business areas? You see here, we want to reach with A&S a mid to high single-digit profitability. I think François explained perfectly which chances we have and that there are even additional opportunities if the market turns differently. This is something we are very much convinced of, that we have even additional chances here. If we're looking into autonomous mobility, Ismail has explained that looking and turning our significant investments into profitability, we are capable of reaching high single digits. You have heard Chris Urmson, who said in 2027, we are going to get a commercial viable package on the street. Let's be at 2028, but it shows how much we are pioneering the future of mobility. In user experience, you can see we have a challenge. We had the same challenge three years ago in A&S. We are managed. We are used to manage challenges. We are capable of executing the right measures. We do know the major task is on the manufacturing side in user experience, being it variable manufacturing costs or being it fixed manufacturing costs. We are closing plants. We are standardizing production. We are making that business fit for future. We are very much convinced that with mid-single digits, we are going to reach comfortably our targets in the mid to long run. Ismail had explained to you what do we see in safety and motion. It is a business where we have high barriers to entry, where one of the 60% market share is driving this business technology-wise forward. We have a great history here, and we have a very concrete plan where we say we need and we know how to reduce even costs further going forward. We are going to consolidate plants. We are going to invest into the right new products which are going to come, and we are going to make the entire organization much more efficient, something which we were missing over the last years. We ensure that quality is at the forefront of everything what we do. You see, from our point of view, becoming a 6%-8% automotive supply company is something we see as a very realistic target going forward. That is why we say we have the stability with upside as our move view. We lead, we transform, and we deliver. Taking three hours of discussion into five sentences, what should you take with you? First of all, we changed the culture into a very much value-oriented culture. We know and we focus on where we make money and what we need to do going forward. Secondly, we are a high-tech company. 80% of our products are among the top three. With the rest, we either know how to manage them profitably, or we make them also the top three, or we take decisions of whether selling it or closing it. We have great ideas of how to turn our products into growth. Thirdly, we have learned of how to execute and have a very cost-conscious organization. We run into our projects not with blind eyes. We know what to target. We evaluate this. If necessary, we take external help in order to validate our ideas, and then we execute. We have shown that we have reduced 15,000 employees. We have managed to get plants closed in a relatively certain period, a short period of time. Fourth, we have the strongest balance sheet in the market. Isn't that cool? We have huge chances to focus on our restructuring and then looking into the right capital allocation going forward. That is also a clear promise. We are a value-creating company. Once we have managed to get our organization up and running as how we see it, we are going to return capital to you. The fifth point is normally a need to be the first one. It is the people. You have had the chance to listen to the senior management team over the last three hours, and I can tell you they are just representatives of the organization we represent. We have defined, as you have seen in the beginning, our four values, and one of our four values is committed to win. This is something we can promise. This is something we are working on, and I am more than happy to answer now all your questions. Thank you very much. Thank you very much for this presentation. This is now the end of our presentation. We will now come to the second Q&A session. I would kindly ask all the presenters now to join me on stage. Once again, same modus operandi. We have two microphones running around. Therefore, José, maybe number one here over there. Also, as a short reminder, two questions. Thank you very much. Thank you for the presentations. All very detailed. Thank you. I wanted to come back to AMS, and you have exponential revenue growth in this division in the next years. I am just thinking, does the order backlog that you have at the moment support this revenue growth going forward? From the last capital markets, I understand you have some exceptional R&D expenditure in this division. How do you plan to reduce R&D? The second question, quick one. Within UX, are you on track to hit breakeven this year? I will keep it very brief there. Thank you. For ANS, it's a topic of research and development costs. As Philip explained, it was one of our key topics, how we manage the cost of, and we didn't want to just cut and then reduce the resources and not doing our job properly. That's why it took some time to come to this. We brought a much better efficiency with a better organization, with a better distribution of the task. We explained also with Nino, Nino explained also using better tools and process methods, and we continue on this to progress. We are now at a quite good level of cost. We still have to work on this, and we continue on this, but we don't have really a critical situation for the future. I think it was your question, basically. No, for this, we are on a good way. On the UX side, if I say short, we are well on track, actually, towards breakeven. You could see also out of my presentation, we have improved on the plant side by 4% our Adjusted EBIT margin. We are also benefiting out of the structural programs which are running on the all-company scale, being it on the R&D efficiency side, being it with this program adopt, and also on the share versus side with this other program. Okay. Maybe Dominic at the back. Hey, so Dominic Abraham from Citadel. I just had one question on free cash flow. Thank you for giving us the moving parts on the margin bridge and the revenue side, but how should we think of the free cash flow generation in the medium term and the long term? When I look at the targets, you get to call it $1 billion of EBIT maybe in the midterm and $1.5+ billion in the longer term. Given the capital intensity of the business does not seem to increase, you mentioned in CapEx, the sales does not go up. Is it fair to assume that the cash flow generation could be sort of 50% conversion and $1 billion cash in the midterm and $1.5+ billion in the long term? You only have one question. Ten questions in one, yeah. Okay, that's fine. No, I mean, we have, as we said, I mean, we are set up our organization to be free cash flow positive each and every year going forward. What we still have to deduct going over the next years is the restructuring costs which we need to pay. I do agree. I mean, once we have reached the optimized size, we should go into that direction. Sorry, just to follow up, the optimal size, is that something by the midterm we should achieve? Call it 2027, 2028, the restructuring element is done. I mean, all our restructuring efforts which we have now initiated are going to be finalized in 2027, beginning of 2028. Fantastic. Thank you. Maybe here in the midfield. Hi, two questions on my side, please. The first one is regarding the issue with BMW with the brake issue. Could you please give us an update of the ongoing discussions? Given the strong relationship that you have with them and I guess their strong bargaining power, is there any risk that we could anticipate further restructuring post-spinoff? My second question is about the top-line bridge. The midterm guidance implies a 3%-4% growth each year over the next three years. Could you please help us to quantify the different moving parts between volumes, price, and mix? Thank you. Could maybe I start with the update about the situation. I guess it's then twofold. The one is on the solution side. I mentioned we worked around the clock. We have established now software and hardware solutions. On the technical side, I think we are well on track. On the financial side, most probably you want to know about the accruals. We firmly believe that we have the right accruals. We always said about double digits. That is audited. That is the number we firmly believe into. Could let me add to the growth question. You're right. I mean, that's the mathematical calculation. As I explained, we are working on new projects. We are working on ramping up existing projects, but we are also working on getting negative business out. I mean, we are doing constantly portfolio management where, for example, one of the decisions has now turned into reality, and that is the sale of our Drum Brake plant in Italy, which is going to go out. You have really a mixture of additional business, of taking back, giving back business, of sold business going forward. That's why we say this is the best figure we can give to you. Okay. Maybe I'll start with him and then Horst after that is you again. Yes, please. Oh, yeah, it's Harry Martin from Bernstein. Just one question. Something that's been discussed in the past around the spinoff is the ability to open up some of the business units to external funding. The parts of the business that are more capital-intensive and you have that need for higher growth investment. You talked about the strong balance sheet today. Is there still the intention to open up any of the business units to external funding, or do you feel like the capital and the growth investment plans that you've announced today are sufficient in each unit? I mean, we are convinced that what we have in our plan, we can manage to do on our own. That's how we have been equipped, and that's our plan. As I said, I mean, we will, on a very constant base, look into our portfolio. We are now, and that's the clear target, within the next three months. As Olaf said in the presentation, the first and foremost priority of Continental is spinning off AUMOVIO. Once we have, let's say, dust has been settled, we are going to sit together and look into what the future, what is best future for AUMOVIO, but that's our speculation if we were to answer these questions. It was Horst over there, please. Just a small follow-up on that. It also goes into that direction. You continue then the carve-out of the UX business, display business, after the IPO or after the spinoff, or that remains to be seen? That is going to be decided thereafter? Exactly. It remains to be seen. We're going, as I said, we now first do the spinoff, and then afterwards, we sit together. Next year, we are going to analyze how is the strategy going forward. We need to discuss that then also with the supervisory board, which we are going to have, and then we take the next decisions, if so. Okay. Okay. The other question that I have is again to Ismail. When we think about this level 4 system in Aurora again, because my impression is still for entire AUMOVIO, a large part of the recovery depends on that order and that it flies and that the leverage comes in. Has there been, on the back of that, any other order you received for level 4, or is that the only one you received so far? Why have you not yet received an order, for example, from a normal car OEM? Yeah, as I said, we want to focus on that commercial vehicles autonomous trucking market because that's the best prospect that we see in the market currently. It is an obvious business case. Hence, we are refraining. I mean, there are requests, especially from the fast followers in that market and further requests from other players in that market. We are refraining to go into, let's say, a different market with this business model right now. We want to launch safely this Aurora project and then expand further into other regions, first with the ODD, Operational Design Domain of Trucking. Of course, there are other opportunities as well that we will consider, but one step after the other. Yeah, it is a significant upfront investment, which we do there. As we said, our strategy has been lead focus perform. It just comes to my mind. You said at the beginning of your speech, Philip, that you're going to achieve in Q2 upper end of your full-year margin range. If already Q2 is upper end of the full-year margin range, to me, that implies that also on the full-year basis, there's a stronger likelihood that you're going to be also on the full-year basis on the upper end of the margin range. Would you say that conclusion is right or wrong, or why wrong? What we do see is we see lighter sales in the third quarter, significantly lighter sales than we have in the second quarter. We need to see how the market is developing. I mean, as I said, we are, based on all what we know today, also on the tariff side in the U.S., confirming our outlook and our guidance. Yeah, we are going to get somewhere in between 2.5%-4%. Sorry, why are we not? Because there are two things. First of all, we do see we need to see how markets are developing in the second half. Yeah, because up to now, we do not see an uptick. What we do see is a bit lighter markets. Maybe José was the next one to ask. Just one follow-up on AM. How does it work to double revenues? Can you talk a bit more about the assumptions you have within this division to double revenues, which will drive the top-line growth based on the order backlog and the earnings? How to? Can you repeat that part of how to double? Yeah. So AM, you have quite a big. Yeah. Growth. Revenue growth coming through. I am not able to envisage or to see how the order backlog is supporting this revenue number in the next years. We are seeing one customer on autonomous mobility in truck. Maybe you can just help us a bit more on that assumption. Thank you. I mean, we are growing in all three elements. I mean, today, you have a single camera in a car. In the future, you will have up to 11 cameras in the car. Today, you have one radar in a car, or sometimes three. You will have five to seven radars in the car. That is actually just growing with the market. We have been very successful now placing our components business, and I start with that one. We have done our homework, let's say, in the last years, not only to do competitive technologies, but also cost-competitive technologies. The order intake of Q1 just shows, and we hope to continue this trajectory, that we have been doing our homework well in the last years. The second pillar, of course, is system solutions. There we start from a lower base, but we are growing fast. We have won already a couple of awards, and the trajectory is also showing in the right direction. Last but not least, I mean, the as-a-service business trucking, that has a tremendous potential. I just outlined $5 billion in 2033. If you look at the longer term, if this really takes off, I mean, there is an upside potential as well as on the numbers that we see. This will all depend on how we launch this project and how this then scales in these markets. The follow-up was, Philip, at some point, you've got like 60%-70% of the business, which is very healthy. UX is going in the right direction, but the expenditure you have on AM is extraordinarily high. At which point do you say, "No more R&D here, and we need to lift the margin of the core work?" Because AM is clearly dragging the margin of Conti. Of AUMOVIO, apologies. Sorry, sorry. Yeah, I mean, we have shown a 3% improvement between 2022 and 2024. These technologies come with a pre-investment, as Philip has mentioned. We have invested in parking. We have invested in driving. We have invested now in this autonomous trucking. You can also see that the R&D rate is continuously decreasing. This trajectory will go on. We expect that we can curb down our R&D rate in the next years significantly year by year by year. Yeah, I think if you look at such businesses, you need to look into the R&D rate or R&D cost to sales in three to five years. Yeah, because we are investing now into a future and to a complete new product field. We are very convinced that we are going to make that happen. I mean, one has asked me, "What, Philip, if you wake up in three to four years and you say, 'What are you particularly proud of?'" That is one of the things where we can say we are working on a very concrete measure, which we are going to bring into this mobility world of how to turn trucking autonomous. The measures that we have taken are already helping us. You can imagine 2022 was not the peak year of investment. The investments in our future growth started in 2023 and 2024. Despite the fact we have improved profitability and we have reduced R&D, how does that come? Of course, with our R&D excellence programs, with our effectivity measures. We have also stopped products. We have divested businesses. All that comes down with a really fixed cost improvement in our business area. Maybe the last question to the gentlemen on the high chair. Thanks. Guy Kelly from L&G. Firstly, there seems to have been a pattern with this business that you size the business and the cost base for a certain level of expected revenues in it. For whatever reason, it does not materialize. Is there anything that you have done or can do to improve the flexibility or to give yourself some sort of more insulation against disappointments from the customer or from wherever? Yeah. And then second question, as you have said, you are setting your balance sheet up in a very different way from a lot of peers, especially in Europe. Do you expect any commercial advantage from that, or is it purely capital market spacing that you want to differentiate yourself? Thanks. In terms of flexibility, I mean, what we are now needing, what we are now doing is we are cutting the infrastructure into the right size. We go to the bottom, and all increase, which we might experience because markets are returning faster, because we win significantly more contracts, we need to do as variable as possible. We are currently, we have issued the first what we call agility targets, which we discuss now, where we say, "Okay, how much potential to breathe a plant needs to have? How much potential to breathe an R&D organization needs to have?" Because we know we are in a cyclical environment, in a cyclical industry. We need to have the chance to build up without adding to the fixed cost base on the long term. This is the job which we now need to do. I mean, we still need to see where we are able to take out unnecessary costs. If we need to grow because of significant business increase, we need to do that as flexible as possible. That is very clear. That is also possible. I mean, that is no secret to do that. I even do not think it is a big challenge. What we do see from our balance sheet is that we think we need to overcome this difficult and challenging phase of our industry with sufficient tailwind, that we are ensuring that we are able to manage our organization into the right direction, that we are able to take the right restructuring measures, that we are able to set up the business into the right direction going forward. We do see the chance to not needing to discuss on a very frequent base with financial institutions about financing our growth or the like, but being able to entirely focus on making the right decisions and the right steps forward in such a demanding market. Perfect. Looking at the clock and also on the agenda we set up for today, many thanks for these interesting and insightful questions, and many thanks to the presentations. Final remarks? Yeah, I think we are very much grateful that you have been here. We have embarked on that journey 10 months ago. This morning with the press, I said we talk many times here about specifically in the automotive industry about Chinese speed. Carving out a business of our size, making it able to be spun off within basically one year, I think is already an achievement. I need to say a big thank you to my dear, to our corporate headquarter and to my dear executive board colleagues, Olaf, who were pushing us into the right direction. We are proud to be here, and we are very much looking forward to manage this business into the future and becoming a cornerstone of the automotive industry going forward. Thank you very much.