Ladies and gentlemen, welcome to the hGears H1 2026 results conference call. I am Lorenzo, the Chorus Call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for question at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Christian Weiz, Head of Investor Relations. Please go ahead, sir. Good afternoon, everyone, and welcome to hGears' first half 2026 earnings call and webcast. My name is Christian Weiz. I am the Head of Investor Relations. With me on the call today are Sven Arend, our CEO, and Daniel Basok, our CFO. They will walk you through our first half 2026 results and will be happy to take your questions in the Q&A session afterwards. If you have not yet received the earnings materials, you can find them in the investor relations section of our website. Before we get started, I would also like to draw your attention to the disclaimer on slide two, which sets out the legal framework for today's presentation and which I will assume you have read. With that, I hand over to our CEO, Sven Arend. Thank you, Christian. Good afternoon, everyone, and welcome to our first half 2026 earnings call. Let me start with the key messages for the first six months. Overall, our performance in the first half of 2026 was in line with our expectations and therefore also consistent with the framework of our full year guidance. The market environment remained challenging, with continued pressure across several of our end markets and limited visibility on the timing and strength of a broader recovery. Against this backdrop, we continued to execute with discipline with a clear focus on efficiency, profitability, liquidity, and cash preservation. Looking at our business areas, we once again saw a differentiated development. [e]-Mobility remained resilient and continued to provide stability to the group. Our focus on sports and luxury vehicles continues to support the business in what remains a demanding environment for the broader automotive industry. E-Bike, on the other hand, continued to be affected by weak market conditions as well as what we perceive as structural changes in the market. In addition, the year-on-year comparison remains demanding as the first half of 2025 benefited from the phasing of production volumes into the first six months of the year. In e-Tools, demand softened compared with the strong prior year period, particularly for gardening tools. At the same time, the structural adjustments and the efficiency measures we implemented continued to support our profitability. This is particularly important given the lower volumes and unfavorable product mix and negative currency effects. We also continued to place strong emphasis on liquidity and cash preservation. The improvement in free cash flow in the first half demonstrates that our measures in this area are having an effect. So to sum it up, the first half of 2026 developed in line with our expectations. We are operating in a demanding market environment, but we remain focused on the factors we can control and continue to execute with discipline. Based on our performance in the first six months and the current assumptions, we confirm our guidance for the full year of 2026. Let us now move to slide four and take a closer look at the sales development across our three business areas. On slide four, you can see the quarterly sales development across our three business areas. Starting with e-Bike, the overall market environment remains difficult. Don't be misled by the quarterly progression. Compared with earlier years, the business remains very weak and unfortunately, we expect this to continue for the time being. As discussed in previous quarters, the bicycle industry has been dealing with elevated inventories, subdued production levels for an extended period of time. However, while the destocking process has made progress, we have not yet seen a broad-based recovery in underlying market demand. As mentioned earlier, last year, we brought forward production volumes into the first half to improve capacity utilization and to reduce start-stop inefficiencies. As a result, we are facing particularly high demanding comparison base in the first half of 2026. Turning to [e]-Mobility, the business area once again demonstrated its resilience. Sales increased year-on-year in the first half and remained at a stable level from the first to the second quarter. This is a solid performance considering the continued pressure on the broader automotive industry. As in previous quarters, we continue to benefit from our positioning in sports and luxury vehicles where demand has proven more resilient. Overall, the development confirms that [e]-Mobility remains an important stabilizing factor for the group. Finally, in e-Tools, sales declined compared with the prior year period. The first half of 2025 represented a strong comparison base, and in the current year, we have seen softer demand, particularly for gardening tools. The development from the first to the second quarter also reflects this weaker demand environment. In summary, the sales development in the first half reflects the market conditions we anticipated. Continued weakness in e-Bike, softer demand in e-Tools, and resilient performance in [e]-Mobility. We will therefore continue to manage the business with a high degree of discipline and remain focused on efficiency, flexibility, and cash preservation. With that, I would like to hand over to Daniel, who will take you through the financial performance in more detail. Thank you, Sven, and good afternoon, everyone. Let me now take you through the financial performance for the first half of 2026. As Sven mentioned before and covered, I will not focus on the business areas, and I will mainly focus on the gross profit and adjusted EBITDA. The group sales declined by around 6% year-on-year, from EUR 49.3 million to EUR 46.5 million. Looking briefly at the business mix, [e]-Mobility grew by 7% to EUR 25.5 million, while e-Tools declined by around 12% to EUR 15.9 million and e-Bike by around 31% to EUR 5.1 million. Turning now to adjusted gross profit in the middle of the slide. Adjusted gross profit decreased from EUR 22.6 million to EUR 21 million, while the adjusted gross margin declined by 70 basis points from 45.6% to 44.9%. The main driver of the margin development was the unfavorable product mix. In particular, the higher share of assembly business within the [e]-Mobility increased the material intensity of our sales. This mix effect is also expected to continue in the second half of the year. At the same time, the higher share of assembly activity is less energy intensive, which partly mitigated the effect of somewhat higher energy prices in the first part of the year. Lower outsourced production costs, lower other material expenses such as tools and supplies, and further efficiency improvements provided additional support. Overall, this allowed us to limit the decline in gross margin despite the lower revenue base and unfavorable mix. Moving to the adjusted EBITDA, we generated positive adjusted EBITDA of EUR 0.4 million, compared with EUR 1.1 million in the first half of 2025. This corresponds to an adjusted EBITDA margin of 0.8%. For me, this is the key message on this slide. Despite lower volumes and unfavorable product mix, negative FX effects of approximately EUR 0.4 million, adjusted EBITDA remained positive. This demonstrates that the cost and structural measures we have implemented are working. Personnel expenses decreased by EUR 1.9 million or around 11% year-on-year. The reduction reflects the structural measures already taken, but also our active and flexible management of capacity in line with the demand. Around EUR 0.3 million of the year-on-year reduction resulted from short-time work implemented in the European plants. In addition, the higher share of assembly activity is less labor intensive and therefore had a positive impact on personnel expenses from total revenues. We continue to monitor demand very closely and adapt capacity where necessary and possible. On foreign exchange, the effect was broadly consistent with what we discussed already after the first quarter. The negative impact was mainly transaction driven and related to USD-denominated sales in China, with a stronger Chinese RMB resulting in less favorable RMB proceeds. Overall, the first half results confirms that the measures we have taken are supporting profitability. At the same time, at the current revenue level, the scope for additional savings without further structural measures is naturally more limited. A more meaningful improvement in profitability will therefore also will depend on the development of our top line and business mix. Let's move to the next slide and talk about the cash flow and working capital. Cash preservation remains one of our key priorities, and the development in the first half shows that the measures we have taken are working. Free cash flow improved EUR 3.4 million year-on-year from EUR -2.3 million in the first half of 2025 to EUR +1.1 million in the first half of 2026. The main driver was operating cash flow, which improved by EUR 3.8 million compared with the prior year period. This improvement was supported by active net working capital management. As you can see on the bottom right, net working capital decreased from EUR 8.6 million to EUR 5.1 million. The reduction in net working capital was mainly driven by lower receivables, reflecting both the lower sales level and our active management of working capital. Inventories, meanwhile, remain broadly stable compared with year end. This is a positive development actually, particularly given the higher share of assembly business in our current sales mix, which would normally tend to increase inventory requirements. The fact that inventories remain stable therefore reflects disciplined inventory management despite the changing production mix. We currently expect working capital to remain around this level over the medium term. However, after the significant improvement achieved over the past periods, we do not expect working capital to provide the same level of additional cash contribution going forward. Turning to investments, CapEx amounted to EUR 1.6 million, compared to EUR 1.2 million in the prior year period. The increase mainly reflects investments related to a new brake-by-wire project in our [e]-Mobility business area. At the same time, maintenance CapEx remained below our normal level of approximately 3% of sales. Despite our strong focus on liquidity, we continue to invest selectively in new projects where we see attractive future business opportunities while maintaining strict discipline on maintenance and discretionary spending. Overall, the development shows that our focus on cash preservation is having a positive effect, both in our operations and in the way we manage investments. Let me now move to the balance sheet and liquidity position on the next slide. Cash and cash equivalents amounted to EUR 7.2 million at the end of June, compared to EUR 8.7 million at year-end 2025. The reduction in cash position mainly reflects repayments of financial liabilities during the first half, partially offset by positive free cash flow and other financing measures within the group. Based on our current assessment, liquidity remains sufficient to support ongoing operations. At the same time, we continue to manage our liquidity position very closely and are actively evaluating additional measures to preserve and further strengthen liquidity. Turning to the net debt, we saw an improvement compared with the end of the first quarter. Net debt declined from EUR 20.4 million at the end of March to EUR 18.8 million at the end of June. This reflects the positive free cash flow generated during the second quarter, as well as the measures taken on the financing side. Leverage decreased from 28.7 x at the end of March to 22 x at the end of June. As we have explained in the previous quarters, the leverage ratio remains extremely elevated, primarily due to the low level of LTM adjusted EBITDA. Therefore, relatively small movements in EBITDA have a significant impact on the ratio. Finally, the equity ratio stood at 27% at the end of June, compared to 31.9% at year-end 2025. Overall, we continue to manage the balance sheet and liquidity position very actively. In the current environment, we are continuously evaluating all, and I mean all, available operational and financing measures that can help us preserve and strengthen liquidity. Cash preservation and active liquidity management therefore remain our top priority, and in particular, my key focus as the CFO of the group. With that, I would like to hand back to Sven for the outlook and some closing remarks. Thank you, Daniel. Let me briefly summarize the key messages from today's presentation. Our first half results were in line with our expectations and remain consistent with our full year guidance. The market environment continues to be demanding, and we still see limited visibility across several of our end markets. Meanwhile, the development of our three business areas remains differentiated. Against this backdrop, our structural adjustments, efficiency measures, and disciplined cost management remain very important. They continue to support profitability despite lower volumes and unfavorable product mix and negative currency effects. At the same time, liquidity and cash preservation remain clear priorities for us. The improvement in free cash flow in the first half is encouraging and confirms the importance of our continued focus on working capital, investments, and overall cash discipline. Based on our performance in the first six months and our current assessment of the market environment, we confirm our guidance for the full year 2026. We continue to expect group revenue in the range of EUR 80 million -EUR 90 million. Adjusted EBITDA is expected to be between EUR -3 million to EUR 0. Finally, our free cash flow is expected to be in the range of EUR -5 million to EUR -2 million. We will continue to execute with discipline, focus on the factors within our control, and preserve liquidity while positioning the business in our end markets. With that, thank you very much for your attention and your continued interest in hGears. We are now happy to take your questions. Operator, please open the line for Q&A. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. You will hear a tone to confirm that you have entered in the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only headset while asking a question. Anyone who has a question may press star and one at this time. The first question comes from the line of Martijn den Drijver from ABN AMRO-ODDO. Please go ahead. Yes, thank you, operator, and good afternoon, gentlemen. I have a whole list of questions. Sven, could you talk a little bit about [e]-Mobility in light of what we've seen in European automotive production? It is quite resilient, but can you elaborate a little bit on what drove that resilience? Is it market share gains? Have you been supplying to successful models? Is pricing an element? Could you elaborate a little bit on that aspect? Yep, sure. I think it's a mix, to be honest. I think number one, we do have, I think that's known in the supercar segment, a product that is running extremely stable. So that's something, that basically, it's been sold out virtually for a year and a half. Then we basically have some products actually even in conventional automotive that are running very stable. I think that's in smaller engines, for example, on a turbo diesel, where I think consumers are now making decisions on what car to buy and at least until now have been actually consuming these products at quite a good rate. The last one, in the end, is really gaining market share or entering into new segments, like the brake-by-wire business that Daniel mentioned, that after quite some development time and delays at least has started and is starting to hit the bottom line. That obviously is something that we aim to expand. It's not been smooth. It's been bumpy. It continues to be bumpy, but I think in the end, we're at least finally seeing that it's taking hold in the business. Got it. Was pricing an element in this development at all? No, honestly not. Understood. Then a similar question on e-Tools. What drove the decline in gardening? You also mentioned in the press release that you basically expect a relatively stable e-Tools in the second half. So what gave you that confidence given the decline in H1? I think the forecast, honestly, that we have for the year, which is normally relatively stable, we believe we will fulfill. Also, there are some newer projects that are starting up, especially in the Far East area. I think what happened in gardening tools is we, of course, never have a clear visibility on the end market, but there was also an issue that we were not fully aware of a bit of a stock buildup at a customer when they were changing ERP system, where they had been confident that they would basically maintain demand regardless, and that hasn't happened. So they were probably, again, working out of relatively high stock levels, made some adjustments that hit us in the first six months, and hopefully will start to disappear as we move along. Okay, and you just mentioned new projects. Is that with existing customers or are those projects with new customers? Both. Both. That's encouraging. On e-Bikes, I know you've mentioned before the difficulty in the e-bike marketing, and you refer to destocking. Is it really destocking, Sven? Isn't it just that the European consumer is unwilling to pay EUR 3,500-EUR 4,000 for an e-bike from a traditional brand that uses your particular client as an engine provider? Because I just have this anecdotal evidence left and right that it's bikes that are powered by non-Bosch, non-Brose, non-Mahle engines that are taking market share away from your traditional European brands. How would you feel about such a statement and analysis? To be honest, number one, I think what is clearly happening is that a larger and larger proportion of bikes, you're probably referring to things like fat bikes that I believe in the Netherlands, for example, have taken a huge market share, and we see the same in some other countries. I would not even say that they are engrossing or taking market share of the customers that we have worked with in the past. It's just that when you look at the sales numbers, they include these types of bicycles. I think what we may find is that if we look into bicycle sales by segment, we will see still very depressed numbers on things like high-end mountain bike drives. The next thing that is happening is that we see, and that's what we said with market changes, we see people turning from the very heavy mountain bike to more things like gravel bike and lighter bikes, which again, in some cases, use different systems. If you look at the announcement of Bosch that came out saying, we're now going to provide hub drives, which is again, for light bicycles, which they, as far as I understand, even source from China. It shows that the mix in the market is changing as well. I think in the end, numbers still have an opportunity to get better. But I think we're, again, far away from the numbers that we saw a few years ago. That's why we say we continue to expect that this will not change dramatically. No, I agree. Certainly not in the near term. But I wasn't specifically only talking about fat bikes. I see city bikes and gravel bikes with actually hub motors as well. Yep. From all these different brands, t he question that I should be asking is, what are you trying to do to get an inroad in those types of brands and manufacturers? Is that a possibility, you think? To be very, very honest, on the simple hub drives, we have quoted with some customers, but like I said, from what we understand, even the big European players are buying these systems at very low cost in China. Now we are basically quoting in China and working in China with some drive manufacturers. But of course, that doesn't help the burden on the European facilities. Understood, understood. Moving on. Just in more general terms, not thinking about the three segments that we just discussed, is there anything worthwhile to mention in terms of new initiatives, projects, segments that you might be entering in the near term, or where you see some light at the end of the tunnel? I'm always very hesitant to talk about these because in the end, then I get nailed on them every three months. But I think we have mentioned that we are looking at opportunities, of course, in areas like robotics and humanoids. We're at very early stages when it comes to these. We believe that at some point, numbers will become significant. We, again, are trying to be actively involved, but it's way too early to say when will we see something that hits the bottom line. Originally, when we talked about the electromechanical braking, expected that to hit bottom line in early 2025. We're now at the end of 2026, and it's finally happening. So I've become a little bit hesitant to say when will we see things, but yes, that's an area clearly where we believe there are opportunities. I would agree because I have several other industrial companies who have been successful in those segments as well. So understood. A question for Daniel. When we look at the cost base, and you've already mentioned inflationary pressure. You had some tailwind because of a higher proportion of assembly. When you think about H2 in 2027, do you think you can handle those inflationary pressures in terms of gross margins? Do you think you have the ability to raise prices enough in this environment to offset those inflationary elements? So far we haven't seen a huge inflationary pressure as we saw in 2022. As we mentioned also in the past, most of our contracts have a very specific clauses for passing through the cost for raw material and in some of the contracts after 2022 energy crisis also for energy. We do see some inflationary pressure that is coming from the energy costs, whereby I must say that since we are buying on a spot, it very much correlates with the cost of Brent oil and it depends on the mood that Mr. Trump is waking up every day. We saw months in which we spend more in the previous year than we spent this year on energy, and we saw some other months in which we spend less. That being said, I think at the end, if the inflationary pressure will remain to be within the range of 3%-4%, it will be difficult to pass it through to the customers in a direct way. But, again, if that will be the case for the full year, we're definitely going to pick up some of the discussions with the customers regarding the pricing next year. Understood. And maybe also to answer maybe not another question that is on your pipeline in terms of FX effects. As these FX effects, we usually haven't hedged a huge portion of our FX effect because it has a time-shifting character because basically the prices for the next year will be based on the FX of this year, and we should see positive effect of it on our adjusted EBITDA next year. We are always adjusting our prices in U.S. dollar based on the exchange rate of the last 12 months, and that is something that we should expect to see next year. That's why we usually don't hedge really on more than 50%, 60% of our cash flows, in that way, considering the fact that also the order book remains to be stable, what we are charging in U.S. dollar. I did not have that question on my list, but thanks for the clarification anyway, Daniel. Then on the balance sheet and the debt, you have a master agreement with an Italian bank that requires you to repay an amount before year-end. What's the status of the search for additional financing, whether it is asset-based or any other type? Can you elaborate, please? I think depending on the performance of the Italian plant, and since we have more or less decentralized the financing of single plants from the group, we are entered already into several discussions with a few local banks, which I expect to be fruitful in Q4 of this year. Because this financing will mainly be based on the performance of the Italian plant that benefited from a very stable and positive performance of the mobility business area. Understood. What type of amounts? Should I be thinking low single- digit or more towards mid single- digit given the asset base in Italy? I'm not sure if it's going to be an asset base. I don't want to say nothing about it because we still have all the options on the table. If it's going to be an asset base, it's probably going to be a little bit more cheaper because the assets will be used as security. I won't commit to that. We are talking about between low single digit and mid single- digit, depends on the duration and the condition. Understood. You've talked elaborately about net working capital as a percentage of sales, that there's a limited upside to be had from where you are today. Could it be the reverse that you have a bit of an adverse development going forward, perhaps even as early as in H2? Or should we assume that this is a stable level? No, I think for the time being, it's a stable level. I just want maybe to emphasize one point in this case. I think we did a very decent job in managing inventory in the first part of the year. We are, of course, paying all the payables on time based on the due dates of the supplier payments. This was mainly achieved by the reduction of receivables. So we are more managing and using so-called working capital financing instruments to manage it. It allows us also to reduce on the interest expenses where possible, depends on the cash flow demand during the month. I think we reached the level that it's a sustainable level, but to go below that, will be almost impossible and also dangerous in my opinion. So I think we want to maintain it in the level of 5%-7%, depends on the performance. Once the situation will improve, we will probably would like to go back to a typical banking financing because it is much more stable. Sure. I understand. On that net working capital financing, how much leeway or headroom do you still have left in your factoring agreement with your factoring provider? We still have some available credit lines there, but it very much depends on the sales level. You only can sell invoices that you are generating. Obviously. Those were all my questions. Thank you very much, gentlemen. Thank you, Martijn. Thank you. Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Sven Arend for any closing remarks. All right. Thank you for your questions and the discussion, and for your continued interest in hGears. We look forward to speaking with you again during our next earnings call on 11th of November for the nine-month 2026 results. Have a good day and goodbye.