Good morning, ladies and gentlemen, and welcome to the Jenoptik Conference Call Regarding the Q2 Results 2021. At this time, all participants are in listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to Dr. Stefan Traeger. Thank you very much, a very good morning from our end here as well, from lovely and sunny Jena. With me today is Hans-Dieter Schumacher, our CFO. We're more than happy to welcome you to our earnings call. Before we get into the details, please let me draw your attention to our safe harbor statement, which you can find on page 2 of our presentation. I'm not going to read it out, please do pay attention to our safe harbor statement. Well, I'm very pleased to say that the first half of the fiscal year 2021, and in particular, the second quarter, has been very strong for the company. As a matter of fact, Q2 and indeed H1, is the strongest in the recent history of Jenoptik. We can show and demonstrate and post record figures for both order intake and revenue, and in particular, a very significant increase in our profitability. Second quarter has seen rising demand really across the board and in almost all of our businesses. In the second quarter, we have almost doubled the order intake of the group. With EUR 213.3 million, revenues also clearly exceeded prior year levels and grew versus the second quarter last year by almost 30%. We've seen a significant improvement of profitability, as I already pointed out, to an EBITDA margin of now 25.2% in the second quarter. That does include a one-off effect of EUR 16 million caused by an effect in the acquisition of TRIOPTICS, and we're going to explain that in a bit more detail in a minute. Overall, as I said, the first half has seen significant rise of demand, a surge of demand in many businesses and many marketplaces. Not only in semicon, everybody's talking about semicon. Obviously we benefit big time from the surge in semicon. Also in our other businesses. We've seen the demand in our biophotonics business coming back big time. We've seen new orders in our automotive/light production business. We have a strong order intake in Light & Safety, our traffic solutions business. Across the board, really very pleased with how the market has been developing and quite frankly, how our businesses reacted and responded to the market development and the fact that we could capture a lot of orders and grow sales as a result of that. On page number 5, we've put together a list of sort of highlights and major steps that we've been taking in the last six months. Before I go there, though, I would like to point out that the foundation for success this year actually has been late, if you want, in 2020, last year. Last year, we went through a crisis that has been almost unseen before since World War II, as they say. I think the steps and the measures we've taken last year have been instrumental in success of the company this year. In the last six months, we've significantly strengthened again our financial power. We've boosted our financial power with a Schuldscheindarlehen of EUR 400 million. For us, as management of the company, it's very important to note we've linked that to certain ESG criteria. We do want to make our company more sustainable in many ways. We do want to contribute to a sustainable way of doing business, and we want to be measured by that. We are committed to be measured by that. We are committed to be measured by how we help place to make this world a better place. Financial power boosted with a significant ESG component. We have delivered on our promises to make Jenoptik leaner, to drive further consolidation of sites and businesses. Following the consolidation of our plants in Berlin, you might remember those of you who follow us in the world might remember that in 2020, we've actually closed one plant in Berlin and consolidated one of our places and businesses in one plant in Berlin. This year, we have sold a small business in Thuringia, a small business that deals with crystal growth. We found a very good home for that business. We've also disposed of part of our non-optical process metrology for certain machining processes, in particular for the automotive industry, with revenues of around EUR 7 million in 2020. We found a new home for that business with Marposs, a company well positioned in this marketplace. We continue to deliver on our strategic promise to consolidate sites, to consolidate businesses, and to make Jenoptik easier to understand. Quite frankly, also easier to manage. Very importantly, we do invest in our future. We do invest in future growth, and in May 2021, we acquired property in Dresden, Germany. We do have a site in Dresden since a long time actually, and it is a very instrumental site in our semicon business. We do produce parts for EUV lithography in this Dresden factory, and that factory is completely grown out of space. We have acquired a site there, and we are committed to build a new factory in what folks call Silicon Saxony. It is not a new business for us. It is an investment into our capacity and capability to deliver on the requirements of our customer, one single customer in particular, that is instrumental in EUV lithography. A very important investment into our future. A lot happened in the last six months, and I did point to the foundations that we have laid last year, and one of the most important steps we have taken last year was actually the acquisition of TRIOPTICS. I guess when we announced the acquisition of TRIOPTICS in the middle of the crisis triggered by COVID-19, some folks might have been a bit surprised that we were brave enough to manage an acquisition, the largest acquisition that Jenoptik has done in the recent history. We've committed a lot of money to that business. We're now benefiting from it. We're now earning, if you want, or picking the fruits and taking the harvest of that investment. TRIOPTICS, as you know, really is producing the gold standard when it comes to measurement and testing of optics for mobile devices. Thus benefits big time from the digitization of our world. TRIOPTICS is indeed a growth driver for us in Jenoptik. We foresee in the forecast TRIOPTICS to grow by at least 20% in 2021 compared to 2020, and to produce an EBITDA margin, which is clearly above group average. TRIOPTICS has contributed almost EUR 50 million already of order intake already in the first half of this year, and we see that to accelerate in the second half and around EUR 41 million in sales in the first half of this year. TRIOPTICS has contributed to the group's figures. Again, we do see that to accelerate in the second half of the year. We are very pleased with how TRIOPTICS develops. Nevertheless, you will remember, those of you at least who follow us, you will remember that we have negotiated a significant earn-out and bonus models component into the second tranche of TRIOPTICS and a very steep earn-out profile to be achieved in 2021. Although TRIOPTICS will grow very nicely and contribute a lot to our profit and to our growth, we now foresee that due to operational issues, they will have a hard time to achieve that very steep earn-out target, and we can get a positive EBITDA from that, which we booked in the second quarter. With that said, let me hand over to Hans-Dieter, who is going to explain the numbers in more detail. Yes. Thank you very much, Stefan. Hello to everybody in the call. Please follow me on page number 8. Here you see our KPIs. We're looking a little bit ahead, the order intake and the order backlog figures. As already mentioned from Stefan, you see on the order intake side a huge increase of more than 50%, 52.2%, ending up at EUR 508.4 million after the first six months in this year, including EUR 49.1 million first consolidation impact of TRIOPTICS. Even under consideration of the high growth and increase on the order intake side. It's driven by all photonics businesses. Stefan will explain to you our divisional development later on. I can already say that all divisions showed a strong increase on the order intake side, with the exception of VINCORION, which is our mechatronics business. There we had some projects postponed on the one side and on the other side, it's still a little bit business circumstances around aviation business in these days. All in all, in Q2 alone, stand alone, our order intake almost doubled compared to Q2 2020, our book-to-bill grew up to 1.31 compared to 1.02 last year at the same time. If you look on the right side, you see the order backlog as an outcome. It's also strongly higher than at the year-end 2020. With EUR 586 million, it's 27.4% above the year end. In both figures, you see TRIOPTICS because we consolidated TRIOPTICS already starting at the end of September 2020. In the EUR 460 million, it's at EUR 27 million, the EUR 586 million is EUR 36 million. It's an increase of 30% in order backlog at TRIOPTICS as well. All in all, we think that we can convert 67.5% of the EUR 586 million order backlog to revenue in this year, which also underlies our further growth in the months and the quarters to come. We go to the next slide, you see our revenue development split throughout the quarter and cumulated for the first six months, EUR 389.3 million plus 18.3%, including EUR 41 million first consolidation impact of TRIOPTICS. Still, even under consideration, a strong growth, especially in Q2. You see this EUR 213.3 million, which is at least in the younger time, all-time record for Q2 in a year for Jenoptik. The growth is coming from the division Light & Optics, where we have not only the inorganic growth with TRIOPTICS. We also see, and Stefan will explain it later on in more detail, a strong development of the semi business, semi side, as well as biophotonics. In Light & Production, we have seen a slight 7.5% growth, slightly starting recovery of the business there in our mainly automotive business. Even in COVID reported a modest growth in revenue. We see at the moment a decline in Light & Safety, which is coming from a delayed placement of orders and pandemic-related delays in delivery of electronic components, which we have solved in the meantime at Light & Safety. This is why they have an ambitious target for the rest of the year. Finally, they want to end up with a growth compared on a 12-month base. I'm very proud that especially in Asia-Pacific, our market rise in revenue has been significantly there, obviously contributed by TRIOPTICS, because they have roughly 50%-60% of their business in this region. All in all, our revenue generated abroad is similar like last year at more than 70%. It's 74.2%. If you come to our earnings figures, EBITDA and EBIT, you see a significant improvement in both figures. Let me explain some special impacts in both figures a little bit more in detail by now that you can have a clearer picture, more like for like, so to speak. In the EUR 73.7 million, which is an increase of 94.6% compared to last year at the same time, the first six months. We have on the one side in the EBITDA, we have on the one side still a slightly negative impact from the purchase price allocation coming from the inventory step-up from TRIOPTICS with EUR 1.8 million. It's a negative impact there. In the prior year, we had no negative impact anymore. On the other side, you see that we have had in the prior year, in the EBITDA, EUR -4.4 million coming from the structural and portfolio measurements we have taken into account in the last year. All in all, we ended up at around EUR 19 million at the year end. At this time, after six months, it has been EUR -4.4 million. The prior year figure operational has been higher by this. All in all, it's a very strong development. As Stefan already explained that there is also a one-off effect of around EUR 16 million in connection with the conditional purchase price components from the acquisition of TRIOPTICS booked because our forecast showed that they will not reach the maximum earn-out, so to speak. We adjusted this a little bit. All in all, we are still very positive with the development of the TRIOPTICS business. Even if taken into account all these special impacts, our operational performance is much, much better than one year ago. Just to point this clearly out. On the EBIT side, it's even better because the negative impact of the purchase price allocation has been much higher in the first six months of this year because here we count EUR 8.9 million. The full impact of the purchase price allocations from TRIOPTICS in the first six months of this year, zero in the first six months of the last year. Compared to EUR 3.6 million, a clear increase of the minus effects from the purchase price allocation side in the EBIT. Even taking this into account, we increased it very strongly. Of course, it is also boosted by the EUR 16 million, to make this clear, from TRIOPTICS. Even taking this into account here, also very strong organic increase there. We are quite happy with the development on both key performance indicators for our group. If we have a look at page 11, where we see our P&L of the group a little bit more detailed. You see a slight increase in functional costs, obviously also driven by the first consolidation impact of more than 400 colleagues at TRIOPTICS. We have had the impact that our financial results has a little bit increased. This is clear because it's coming from our financing exercises, so to speak, around the new ESG-linked bond and on the other side, and the payback of the bridge financing, which we took into our books when we started the acquisition process of TRIOPTICS in the prior year. All in all, a strong development even till the earnings before and after taxes. Here it's important that you know that the EUR 16 million coming from the TRIOPTICS deal is not tax relevant. This is also positively influencing our earnings after taxes and therefore also our earnings per share, which has reached already EUR 65.10 per share compared to EUR 18.10 per share, which is a very strong increase, more than three times higher than a year ago. All in all, we are quite happy with the development of the group, even taking the special effects into account. The next slide show you our picture combining the balance sheet development and the P&L in the cash flow, free cash flow statement of our Group. Here you see that if you look purely at the figure, we have realized a little bit lower free cash flow compared to a year ago. That has been after six months, EUR 16 million compared to EUR 11.6 million in this first six months. This is mainly driven and exclusively driven by the working capital increase, which we have taken into our books as it's the preparation of the very, very strong Q3 and Q4 we are anticipating for our Group. To make sure that we can deliver the promised product offering solutions to our customers, we have built up stock inventory, and we have started already to work on the projects for our customers. Mainly driven by inventory, our working capital increase. Even taking into account that we have financed our investments, it's still a very positive signal. We have added a positive cash flow to the good performance of the first six months for our group. With having said this, I would like to hand over again to Stefan Traeger, our CEO, who will guide you now through the divisional business development of our group. Thank you. Hans, thank you very, very much. Let's start straight away with Light & Optics on page 14. Our optics business has indeed seen a very positive operating performance, and record level figures. The revenue has been driven across the board, really by all businesses that we have or markets we address within Light & Optics division. Obviously, semiconductor equipment has been a strong boost to the performance of Light & Optics. I mean, everybody talks about the chip shortage and about the significant investment into that marketplace. Yeah, it's like I'm saying, every new factory that's built around the globe to build chips, equipment is needed to fill the factory. If equipment is needed, our optics is required. Revenues with the semiconductor equipment at a very, very high level. Indeed, what also came back is our biophotonics business. You might remember that last year we had been a bit surprised on how strong that business declined when the crisis broke out. Equally, we're now almost a bit surprised how strong it came back. I mean, it's obviously a nice development. We see very strong order intake and sales in biophotonics. TRIOPTICS contributed already EUR 41 million. We do clearly experience an even stronger H2 based on the good order intake of TRIOPTICS. Pointed out that already. TRIOPTICS has almost EUR 60 million of order intake in the first six months alone. EBITDA, as a result of the good operating performance as well as obviously the TRIOPTICS effect, improved significantly. Overall, you do see the numbers on the page. We are very, very happy with how this business develops. Obviously, even if you take out the one-time effect of minus EUR 1.8 million plus EUR 16 million. If you take out that, the EBITDA margin, which is reported at 31.5%, but even without those extraordinary effects, it would be at almost 25%. Very high margin development. Order intake grown by almost 91% in the first six months. Sales grown by almost 49% in the first six months. EBITDA grew by 118.5%. Very good performance across all figures. Let me take you to Light & Production, our automotive business, on page number 15. Light & Production obviously has been the business that suffered the most last year from the crisis. I think it's very notable how strong the recovery, in particular in the order intake, has been in the first six months, versus, granted, a very weak Q2. Q1 last year has already been strong, actually, but Q2 has been weak last year. Overall, though, if you integrate over those two quarters, Q1 and Q2, the order intake in our Light & Production division grew by 73% to now EUR 109.6 million. Sales also grew by quite significant 7.5% to EUR 78 million. Clearly a very high book-to-bill ratio of 1.4. As a result of the increased volume, but even more significantly, as a result of the reduction of headcounts that we have had implemented last year in this business, we do see profitability rising. Last year, the Light & Production division had been actually EBITDA negative in the first six months. This year, it is back on the positive track. We do see good growth in EBITDA margins. We do expect further positive developments in the EBITDA margins in the second half of the year. Again, let me point out that the majority of the around 5% headcount reduction that we had implemented in 2020 actually has been in Light & Production. We did do a significant structural cost takeout in our Light & Production business last year as promised and indicated. If we go to page number 16, our Light & Safety division, i.e., our traffic safety business. We do see order intake growing significantly by 54.3%. Let me remind you, this is a fairly lumpy business, typically with large tenders coming in and so on and so forth. Nevertheless, we're very happy with the order intake development. There is, though, a significant time lag between order intake and sales. Now, that's pretty typical in this business. It takes a while on the execution side to work those into sales. In particular, though, here we had problems in the beginning of the year with our supply chain, which we have been able to fix. We do still see the effects on the sales side. Despite the very strong order intake development, sales is actually down 23.2%, which does also lead to missing volume and therefore missing cost coverage, resulting into a decline in the EBITDA margin. Let me again point out that this is a time lag. It's not as if sales are lost. The orders are there. We have to execute, and we're very confident by now that we can execute in the second half and that we do see much better business and actually strong growth in the second half of 2021. Last but not least, let me go to VINCORION, page number 17. VINCORION has difficult market conditions. There's no doubt about that. The effect of the aviation crisis is there. Yes, we do see, like everybody else, first signs of recovery. Apparently, the amount of flights, at least in North America, are back on 2019 levels. Big parts of the aviation industry is still suffering from the COVID-19 crisis, and that does have an effect on VINCORION. We do see order intake declining by almost 25%. We're grateful that the business and the management of the business has been able to grow the revenue, nevertheless, by at least 2.1%, which is a good result given the circumstances. It's great to see that the EBITDA margin actually expanded remarkably. We do see better profitability as, again, a result of the cost reduction measures that we have implemented already last year. Overall, if we take it all together, again, we have seen a very strong H1, very strong in particular Q2 in 2021. I would like to, again, point out that we've laid the foundations for that strong performance actually last year already. We've implemented significant cost-cutting exercise and cost-cutting measures. We consolidated sites. We structurally took cost out by reducing our headcounts. We got the backing by our supervisory board also to exercise and pull off the largest acquisition that Jenoptik has pulled off in the last years, actually, in its recent history, with the acquisition of TRIOPTICS in the middle of the COVID-19 pandemic, at the time when a lot of people were saying we need to keep the cash together. We did keep the cash together in many ways, we also did spend it where it fostered growth. We can see some harvest of that and we do see the positive effects of that investment now. As a result of all of that and also the very good pipeline that we have going forward, we raised our guidance a few days back. We now believe that revenue will come in at between EUR 880 million and EUR 900 million. We do believe that the EBITDA margin will be between 19% and 19.5%. That does include the one-off effect, which we already talked about. We do see, as I say, the effect of the restructuring measures taken in 2020 already bearing fruit. We're very convinced that the second half will be even stronger for us. Let me take you to page number 20, though, because we believe that Jenoptik is not just a short-term interesting investment, but we do believe that we're actually very well-positioned for long-term further growth. There are several mega trends that drive the demand in our industry, that drive the demand for more light, for photonic solutions into the future, and we are well-positioned to capture a lot of that additional business. There's the digitization of our world, and we all know that the growing demand for chips for various applications really is there for years to come. We do see the increasing usage of augmented and virtual reality tools, and in particular, with the acquisition of TRIOPTICS, but also with our very strong micro-optics and optics business in the semiconductor world, we are well-positioned to support that digitization of our world. There is indeed a trend for more spending in healthcare. With our diagnostics and bioimaging modules and components, we help large customers to capture that trend and to support that trend. We do see good performance in our healthcare and life science businesses, and we foresee that to continue to be strong for foreseeable future. Smart manufacturing is needed. As I said earlier, we are committed. We actually want to be measured by how much we can contribute to make the world a better place. It does include not just, but also impartedly, the ability to produce goods and products with less resources. For that, smarter ways of manufacturing are required. With our technologies, we can help and support that. There is a need for mobility. We all talk about the increasing need for e-mobility, for the electrification of car fleets and all of that. We benefit from that, but not just from the electrification of car fleets, but also from the rise of more smarter ways of mobility, of smarter infrastructure. We can capture business from that. We can capture growth and profitability from that. Therefore, we believe that, yeah, we do have a record-breaking Q2, a record-breaking H1. We believe we will have a record-breaking 2021. I think even more importantly, we are well positioned for margin expansion for the years to come. That said, let me pause here and we're very much looking forward to receiving your questions. Thank you very much. Ladies and gentlemen, if you would like to ask a question, please press nine and star on your telephone keypad. In case you wish to withdraw your question, press nine, star again. The first question comes from Craig Abbott, Kepler Cheuvreux. Please go ahead with your question. Yes, good morning everyone. I have a couple of questions please. First was just on material cost inflation outlook in general for the group and basically from every manufacturing firm about supply chain tightness and special supply chain disruptions. You mentioned you had resolved the supply disruption issue in safety and didn't mention any other particular factors looking ahead. Could you maybe just shed some light here? Do you have good visibility on how you can pass on higher input cost or? That would be one question on that. Secondly, did you lose any orders during that time, i.e, market share, or was there an issue that sort of impacted you or your peers as well? Thank you. Craig, thank you very much for those questions. I mean, as a matter of fact, it basically one. One question bundled together, I would say. Well, I'll try to answer it in a broader sense, actually. On the material cost, yeah, of course, we do see costs, or we foresee the cost to rise over the months, like we all read everywhere. I think we've discussed that last time already. We typically have long-term contracts, both with our suppliers as well as with our customers. In both ways, it takes us a while until it flashes into our P&L. We do foresee costs to our suppliers to increase, in particular in the second half. I haven't seen much effect in the first half, but I think the more it goes on, the more we will see an effect there. By the way, we would think that, personally, at least, I believe that these issues are going to be with us definitely for the remainder of this year, and maybe for the first half of next year even. Equally, we do have long-term contracts with our customers, so we can't just pass it on as it arises. Over time, of course, we try to always raise prices. No short-term effect. What I will say changed a bit compared to the beginning of the year. At the beginning of the year, we had particular problems. There was isolated issues, which were, though, very significant. We talked about this one particular problem that we had in Light & Safety. To include your second question, basically, in the answer, we just worked with that particular supplier on a technological problem that supplier had. We still get this from the same supplier, and together and jointly, we've solved the technical problems. We had a number of those sort of bigger events. I would say that by now we have those bigger issues under control much better than the beginning of the year, but we have more noise, if you want. Overall, the pressure is rising. It's like the tide is rising, but we don't have bigger waves, if that makes any sense. The same effect, but not in isolated, bigger events, smaller but spread out in a more spread out way. I hope that kind of answers your question. Everybody talks about challenges in electronics and God knows what. On the other hand, of course, our supply chain group, our purchasing group, is better prepared now than the beginning of the year in the discussions with our customers and suppliers. Stefan, maybe I can support you with one, I think, not important sentence, that all these happenings you just described very, very good is already priced in our guidance for 2021. Yeah. Just let me highlight this. Yeah. It should be no negative impact coming to our figures in this year anymore. Yeah. Just to let you know. Yeah. Good point. Thank you. That's very helpful. Just on the open questions still on Light & Safety. During that time, do you feel like you lost any market share traction? No. No, I don't think. No. Because it's been so isolated. Significant, but isolated. No, I don't think we've lost any market share there. Didn't have an impact on our order intake. Okay. Thank you very much. The next question comes from Stefan Maichl, LBBW. Please go ahead with your question. Stefan Maichl from LBBW. Good morning, gentlemen. A couple of questions from my side. The first one is on Light & Safety. If I understood you right, you guided for a sales growth for the full year for this division, which might imply over 20% growth in the second half. Might this growth reach the 5%-9% outlook, provided with the full year figures 2020 for 2021, or is it less? I think you are right. We guided for sales growth for this particular division, which does indeed imply a very strong second half. I can confirm that. Mm-hmm. Lot more. Only sales growth. It could be over 1%, 1% or 5%, depending on your project execution. Correct. I think it's going to be, given that we need to produce, ship, install well things, and all of those executional things, I think it's probably a, how do I say, low single-digit figure. Yeah. Sales growth that we're going to see until the end of the year. I would say something between 1% and 5%. The rest might actually spill into 2022 then. Stefan is right. It's a strong increase in sales in the second half, which we are forecasting. Yeah. Okay. The second one is on VINCORION. VINCORION has showed really strong margin improvement in the first half, despite only 2% sales growth. You mentioned cost reduction, but a second point might be a product mix effect with less aviation business. We have seen Airbus might increase deliveries in the second half. Should that change that mix, and therefore, put some pressure on the margin in the second half? The question is, could you keep that margin over 10%, 11% in the full year 2021? Yeah. That's a very good question. First of all, you're right. There is also a mix effect. There is a significant cost takeout effect, but there's also a mix effect there, I suppose. You're absolutely right. If aviation comes back, will this put pressure on the percentage margin? Maybe. On the other hand, if aviation comes back, volume goes up as well. That's the counter effect of the mix effect. Stefan, this is maintenance and repair business- Yeah ...which is higher margin business. Which is higher margin business. It's a bit difficult to put a number on it. I think we will see good margins for VINCORION. Yeah, maybe more sort of on a steady state, sort of flat where it is at the moment. We have to see how it ends up at the end of the year. As I say, there are two effects. There's the mix effect and there's the volume effect. If we get more aviation business going forward, mix is a bit less favorable. On the other hand, if it's more service, the mix becomes richer, basically. If we get more volume, we have better overhead coverage, it's probably going to be a sort of a wash. Mm-hmm. A 10% could be likely with that wash for the full year? Well, as you know, mid-year, we hesitate to guide on margins for particular businesses. Yeah. Maybe it's a bit higher than what you just mentioned, but that shouldn't be seen as any guidance in any way, shape, or form. Yes. Okay. Okay. Understood. Looking ahead to next year, you just guided some quarters ago, 16% EBITDA margin for 2021. Taking together all your different comments for this year, even if you take out this EUR 16 million TRIOPTICS one-time effect, you might end up at around 17%, still above your 2022 target. When might you think about to not change or to make it more visible for us, which margin might be? Sure 2022? Yeah. Absolutely fair question. Look, we communicated our strategic plan for the strategic period going until 2022 years back, obviously. At the time, you might remember that I did say, I don't like this guidance through the cycle or above the cycle or below the cycle. I said at the time, whatever the cycle is going to be, we promise a bit more than 16% EBITDA margin. Now you're right, we will deliver on that promise a year earlier, despite the fact that we did have a significant crisis. We are currently working on our strategic plans for the next strategic period, which actually starts next year. We will pull this forward a bit because, obviously, if we would say that next year we might reach 16%, that would be quite a disappointment, I think. We're working on that. We will combine that with a new long-term outlook, which we intend to communicate later this year, sort of towards the end of the year. We already, I think, have at least penciled in some time for a capital markets day towards the end of the year. If I would be following Jenoptik and I would come to the capital markets day in 2021 and wouldn't get a more long-term strategic outlook, I would be disappointed, let's say. A fair statement. Please do understand and bear with us. We would rather want to come with a substantiated 2022 figure and a long-term outlook, than just shoot from the hip here at this moment. What I can say is that, I don't think we will say 16% for 2022. That would be a disappointment. Mm-hmm. That would be indeed. Some housekeeping questions. You have booked in the first half about EUR 15 million of PPA on an EBIT level. No, EUR 9 million PPA on an EBIT level. For the full year, you have given us a guidance of EUR 15 million. Is this guidance still valid? Yeah. Yeah? Yeah. Okay. Next one on tax rate, it was around 9% in the first half. Stefan, the point is that you cannot calculate times two is because one of the inventory step-up is gone now for the year. The EUR 1.8 million is not EUR 3.6 for the year. It's just EUR 1.8 for the whole year. Yeah. This is why you cannot take it. The PPA effect in EBITDA is gone by the end of February. Yeah. In EBIT. It's also gone for the future, but it's in also now. Yeah. This is what I wanted to explain. This is why you cannot say EUR 8 point something times two is the right figure. This is why it will end up in EUR 15.5 million, I think is the amount. EUR 15.3 million. Yeah. It is at least our estimate or calculation. Okay. On tax rate was rather low in the first half of 2% due to the one time of TRIOPTICS. What should we expect for the full year on a P&L level? Yeah. This year is probably our estimation right now, it's not so easy to do a tax calculation because of the separate tax issues. I talked to our head of taxes because I wanted to be prepared for the question. We are assuming around 15% in this year because this one-off effect is also there for the whole year, and it's not tax relevant, but it will increase in the years to come. The 15% is the last time we see 15%. We are prognosing our forecasting for the next years is step-by-step increasing tax rate, and it's still valid one. Okay, my last question is on divestments. You have done some in July. Should we expect any one-time issues from these divestments? Are further short-term M&A activities likely? Yeah. The divestments we've done are important, but I would say it's not as if we do get a bit of a gain, value gain. We will book it in Q3. In Q3, yeah. Because it was after the 13th of June. Cash flow comes also. Yeah. Cash payment, we already see partially in July. We will collect the whole money probably in the whole Q3 and book our impact in the P&L, and we will have booked gains, book value gains. Yeah. Slightly some booked value gains. Not really material. Not so big amount. Yeah. Not comparable with the one of TRIOPTICS, for example. Right. We will gain some booked value. Yeah. Your question. No, go ahead, Stef. No, the question, is it double digit or single digit millions? Well, I think what I'd consider that was, it's not at the same amount of, or level of the TRIOPTICS one time effect, and it's not zero, so somewhere in between. Like a EUR 1 million. It's EUR 1 million, I think. Okay. Single million figure. Single digit million figure. Mm-hmm. Okay. Yeah. Further divestments, yeah. Further divestments. Which point, I guess, towards what status of the discussions around VINCORION? As always, we are in discussions with interested parties. We always have been in discussions, interested parties. At this moment, none of these discussions represent a status in which it is more likely than not, because otherwise we would have booked it under IFRS 5, as hold for sale. At this moment, the discussions that we had been in and we are in are not at that status. We continue to talk, and at this point in time, I can't disclose any more details. Okay. Thanks for your answers. I wish you all a relaxing, good summertime. You know. Bye-bye. Thank you. Bye. you. Bye. you. Bye. Thank you, Stefan. The next question comes from Malte Schaumann, Warburg Research. Please go ahead with the question. Yep. Hello. My first question is on gross margins. The gross margin was below 32% in the first half. Exclude the one-off, it's still 32.4% something. Actually, that's the lowest gross margin for a six-month period in the past 5-10 years. Environment, they have pretty high revenue share of semiconductors and lighting optics business. It puzzles me a bit, what really is keeping gross margins down? You said that you did not really see cost increases come through. That might come in the future. Maybe you can add some more color on that line and then provide some more thoughts how that should then develop going forward, if there will be some catch up effect in the second half and maybe some midterm views. Initially the idea was coming from a 35% to further expand margins to the higher 30s level. Now at 32% in the first half, yeah, that's quite a difference. When it comes to gross margin, we do have significant mix effects in the business. The more we do, for example, in Light & Production, automation integration, we have higher gross margins, and therefore, sorry, lower cost margins, but less OpEx and still good EBITDA margins. Due to the, basically the business set up there, a lot of purchased goods that we mark up and then sell on. A lot of the third-party items included. Typically mix effect, I'd say. We have a PPA effect, which is significant. In the beginning of the year, in the first six months of this year, Stefan, Light & Safety has been under pressure. You have mentioned it, the reasons. We will have a stronger Q3 and Q4. This will improve our gross margin. The gross margin in Light & Safety was relatively weak in the first six months. Again, a mixed bag of reasons. Mixed effects. Typically, Light & Safety is a gross margin rich business with a lot of OpEx. If we have less Light & Safety, but more, say, Light & Production, for example, or even Light & Optics. We have in average for the group, less gross margin, yet less OpEx percentage of sales leads to higher EBITDA margin. With the catch up in Light & Safety in the second half, you would expect gross margins also to recover. Would you foresee an increase or a lot of flattish gross margin development this year in comparison to last year? Yeah. I think in the same region. I think in the same region, yeah. Flattish. No increase. Yeah. Traditional, Malte, in our gross margin, you see the operational cost of our business. You see the fabs, people working in the fabs. Our production is more expensive maybe than in machine build business regions. Therefore we don't have higher OpEx later on. This is why we have higher EBITDA margins. Yeah. OpEx later on was quite good. Yeah. Yeah. Okay. The next question is on CapEx. You recently acquired the real estate in Dresden for the new site. Should we expect over the next years inflated or higher CapEx levels? Is that the normal ups and downs as you would expect every year? Yeah. Well, Malte, it's a good question, by the way. It's a very good question. We balance this out the financial needs and the free cash flow we need to finance our investment there. This big project will last over a period of one year. The building, the construction of the factory will last 1.5, two years because it's the highest category of cleanroom which is on the market. This is not technical and construction-wise, not so easy to build up. Yes, you are right. Probably under the line, we will slightly increase our investment levels all in all over the years to come. I think it's also part of our strategic exercise right now. We will communicate about this planning then at the Capital Markets Day, when we present our ideas to all of you. Yes, you can already assume that we will slightly increase because our company, our group is now starting a growth period, and we have to follow this with investment in our core businesses around the world. It's around the world. It's not only in Dresden. We are also starting here in Jena to investments in production and R&D centers, so to speak, but also in Americas. We will see higher investments in U.S. and probably also in Asia. All in all, yes, you are right. You will see an increase in investment, but it's not every year double. It's not doubling every year. We will be mindful, we will be careful, but we do foresee investments to go up to finance the growth that we anticipate and plan. Yeah. Therefore, we will keep an eye on our ROCE development, our return on capital employed. This figure will be more and more important in the next strategic period because we are investing so much money now in the purchasing of companies and in the investment in our business. Okay. On the other-- You're investing quite a lot of money, I guess. When you're making a long-term commitment for your main customer, especially for your main customer, do you get a return, a long-term commitment assurance for them that will last maybe over the next couple of years, regarding the orders, business, et cetera? We typically have long-term contracts, in particular with that business and with that customer. We have long-term frame contracts. Let me also point out that in particular, the investment in Dresden is for EUV and for our contribution there in terms of micro-optics, nanostructured optics for those particular sensors that you know about, and we all know about. Again, I don't see any other company that is actually able to do that type of technology at that level on an industrial scale. Obviously, academic institutions can do that. The friends at Fraunhofer here in Jena would be able to do that. I think on an industrial level, we are sole supplier for this particular technology. It's hard for me to see that anybody can pull it off out of the blue. Yeah. Makes sense. Okay, quick last one. You announced two small disposals. Should we expect further disposals in the second half of the year or is that mostly done now? You refer to smaller ones? Apart from VINCORION. Yeah. Apart from VINCORION. I'm referring to the smaller ones. Not at the moment. Remember when was that? In November 2019 or when we had our last capital markets day, we were shown this bridge of, I think a total about EUR 40 million of business that we believe we should lose over the years. There was EUR 20 million has been lost. It's already realized. It's already realized. Then another EUR 20 million, more or less, is what we've realized now. We're kind of done with that exercise for the strategic period of disposing of businesses and cleaning up the portfolio. Yeah. Okay, good. Just the final one. Yep. Okay, thanks. Thank you. The next question comes from Richard Schramm, HSBC. Please go ahead, Richard. Yes. Hello, gentlemen. I have follow-up on VINCORION. I can remember that you mentioned that there might be some measures necessary if the situation does not really improve. Now, agreed that the margin development has improved. However, if I look to the order situation, this looks pretty worrisome and does not sound too optimistic for the quarters ahead here. Is there any need to adjust capacity? Should we expect there for some extra costs in H2? Yeah, good question. First off, we do have a fairly high order backlog for the business. We believe that we still have things to execute on, and we do believe that the orders will improve significantly. Order inflow will improve significantly in H2. Nevertheless, there is activities in terms of structurally cost takeout. Some of that's been booked already in the first half. I don't think there's going to be a lot still to come in the second half from the Columbus project. There is ongoing restructuring activities in VINCORION as well, which by the way, some of the time we've spent already last year, but most of it is actually, or some of it is for this year. No, it's booked already. The main part is booked at the year-end, and now it's realizing, and the rest will come- Will come this year. ...throughout the year. Yeah. All in all- Okay ...not so bad the outlook from our point of view. Yeah. Yeah. Okay. We should not expect that there is some, let's say, big impairment also necessary for preparation for a possible divestment here? As I said earlier, at this moment, we are in discussions, but we, at this moment, are not in a position to disclose any further details. Okay. One question concerning the margin quality of the orders in the automotive business. How would you judge this? Is the backlog you have now clearly better quality than, let's say, a quarter or two ago? Is this still not the case and you have to struggle and keep a clear eye on cost reductions more? It's getting better. What's coming in is getting better, but we have to plow through and manage through the period with very poor, from a margin perspective, poor orders that we've booked to keep the business going to fill the factory. We have to plow through that effect and manage through that effect. What we take now has richer margin components, but what we still have is fairly poor. It should get better as the time goes by. This sounds a bit that you are not able to be selective on the order info at the moment, right? We have not been able. You were asking for, I was referring to compared to the beginning of the year and the end of last year. The second half of last year, in particular in summer last year, it was really difficult. Q2 last year was a complete disaster. Now with things getting better, we can become more selective, and we are becoming more selective. We still have orders in the books which we have taken in a very desperate situation in order to get work. As much as we manage through it and execute through it, what we take now has a better margin quality. Okay. Thanks a lot. More than welcome. We have one follow-up question coming from Craig Abbott, Kepler Cheuvreux. Please go ahead. Yes. Thanks again. Just one last one, please, from my side. We've talked about this in past conference calls, but I think in the meantime, the EU's plan for phasing out combustion engine vehicles has been accelerating further since the last call. I think it's the Fit for 55 program, and I just would like to know if this timeline then for the phase-out has been accelerated further, if you might then have to take further measures to, again, adjust your capacities down in the metrology activities? Whether this might spark a fundamental rethink in terms of whether there might be a better owner for these activities. Yeah. Perhaps further developing the business in other applications faster than they might be able to do- Yeah ...embedded within the Jenoptik Group. Thank you. Yeah. We did talk about that in the past already, right? I mean, at the moment, I think we don't see any further need for capacity reduction in this business. Frankly, we have reduced capacity quite a bit, last year and the beginning of this year. At the moment we're getting orders, and we need to be able to execute. At the moment, we actually need to make sure that we still can execute the orders that we get. I do think there is a pent-up demand effect that we see. We don't think that we will get back to historic levels in this business. At the moment, there is some pent-up demand that we do see as an order inflow, and we need to make sure that we can at least execute on those orders. Overall, to say in the short term to midterm, we don't see any further need to restructure. In your long-term question as to what extent this should be and is a core part of portfolio of Jenoptik, is another question. At the moment, we do not intend to, or have active plans to, or have even active processes to sell that business. Quite frankly, I think at the moment it's not the right time for it. I don't see that anybody would give us any, I would say, decent price for it. If somebody would give us a decent price for it, then we will certainly talk. At the moment, I don't see that, and I think it's our duty to look after the business and turn it around, which we are working on. We'll have to see what the future's going to bring. Okay. Thank you. At the moment, there are no further questions. Well, then, thank you very much again for being with us today. Let me again summarize. We're obviously very proud of the numbers, the performance in the first half. Second quarter in particular, really record-breaking figures for Jenoptik. First half, record-breaking figures for Jenoptik in the recent history. Let me point out again that this has been made possible by, yes, a very good market condition in many places, in many of our businesses, but also by the measures we've actually taken last year. I think we talked about that last year a number of times. We talked about our restructuring efforts. We did spend a significant amount of money of our shareholders on making the business better. We did spend, in the middle of the crisis, a huge amount of money on acquiring a business that we do foresee to bring a lot of growth in the future. I think those bold actions that we've taken in 2020 pay off now. Again, I'd like to thank also all the representatives on our supervisory board of shareholder representatives, as well as workers' representatives, both sides of the aisle, for backing us up last year. It was not an easy decision last year to deploy hundreds of millions to acquire a company in the middle of COVID-19. Again, it's paying off now. We do post record-breaking figures, and I think as I said in the end of our presentation here, yes, we have a record-breaking Q2. Yes, we have a record-breaking H1. Yes, we have or do foresee a record-breaking financial year 2021. Even more importantly, we've used the time to make the business better for the future. We believe that we can, and will, capture on those long-term trends for photonics. We believe that we will grow this business for years to come and expand margins. Looking forward to also talking with you and explaining to you our long-term plans, hopefully in a capital markets day towards the end of the year. Thank you very much.