Good morning, Ladies and Gentlemen, and Welcome to the Jenoptik Conference Call regarding the results of First Half Year 2022. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to your host, Leslie Iltgen. Thank you very much, and a warm welcome to our conference call on the half year 2022 results. My name is Leslie Iltgen, Head of Investor Relations and Corporate Communications at Jenoptik. With us today are CEO Dr. Stefan Traeger, and our CFO, Hans-Dieter Schumacher. Dr. Traeger will point you to the key highlights, as always, of our half year results, and Mr. Schumacher will cover the financials in more depth. As always, both will be happy to answer any questions you may have in our Q&A session at the end of this call. Also, let me remind you that this call will be recorded, and a replay will be available on our Investor Relations website after this call. Before I hand over, please also pay attention to our usual disclaimer that you will find in the presentation. It is now my pleasure to hand over to our CEO, Stefan Träger. Stefan, please go ahead. Yeah, Leslie, thanks very much. Also from our end here, a very warm welcome to all the participants in the call. Welcome to our earnings call. I think it's fair to say that our company continues to perform very well in what is a challenging environment for many people. We will point out throughout the call that with all the challenges that we all see, with all the political problems that we see in this world and all the other issues, we at Jenoptik, we're not decoupled from that. We're not decoupled from the political challenges. By and large, we can keep the impact on our business fairly under control, actually. As you can see from the statements we already made, we will, as I said, point that out in more detail throughout the call, our first six months of 2022 shaped up very nicely. In particular, the second quarter has been very strong. The first six months, orders were up by 36.8%, and sales is up by 35.8%. Very strong top line development, which also brings with it very good development of our profitability. Our underlying EBITDA margin after six months is at 15.6%. In particular, the second quarter has been very strong. It is 20.4% EBITDA margin. We are really proud of that. Our business continues to be driven by the ongoing trend to the digitization of our world. There's no question about that. That does drive our business. We all still hear about all the challenges of chip shortages and the demand in the world for more digitization solutions. That helps us, it helps our business, and we are proud to actually contribute to that. Not only though is our semiconductor business growing very nicely at the moment, actually very, very strong at the moment, but also our Tronics business is growing very healthy, and our life science and healthcare business contributes to the growth. We do see very strong order intake momentum for our Smart Mobility Solutions, although in this area we still have challenges to convert orders into sales due to certain supply chain issues. Overall, I think it's fair to say that top line is very strong. Order intake going very, very nicely. We manage our supply chain challenges. Sales are up very nicely. We are proud to report very good EBITDA margin. Based on a very strong order backlog, we actually raised our full year guidance to now sales between EUR 930 million and 9 60 million, and an EBITDA margin of between 18% and 18.5%. Again, that's based on a very strong order backlog and a very good performance in the first half. Order backlog is EUR 710 million. It's up around 31% versus prior year, so very strong performance overall. Let me just point one more time to a very important milestone in the transformation of Jenoptik. On the 30th of June, we finally managed to close successfully the transaction of sales of VINCORION. Again, that's from our perspective, major milestone in the transformation for our company to a global leading pure play photonics company. We do wanna focus our company and our portfolio more on our core competencies around optics and photonics. We wanna focus our portfolio even more and evermore on those, you know, growth drivers. We wanna participate and actually make profit out of the ongoing trend to the digitization of our world. We enable the digitization of our world. We want to enable more effective, more efficient healthcare systems around the globe, and we wanna drive smarter ways to get from A to B. Those are sort of the big drivers in our business, and they remain intact. They may remain strong. They're actually even driven to some extent by the transformation in our world. Looking forward to a successful H2. Before we go into that, we will share with you the results from the first quarter. On page five of our presentation, we have one more time tried to help everyone with the reorganization for our company. I don't wanna go too much into it anymore. Just a reminder that from now on, actually since beginning of this year, we're reporting our numbers in the new segment, Advanced Photonic Solutions, comprising the former Laser Optics division and some parts of the Light and Production division. Our second core business, Smart Mobility Solutions, basically what used to be called Light and Safety. We Non-Photonic Portfolio Companies, comprising some particular automotive related businesses, Prodomax, INTEROB and HOMMEL ETAMIC, by and large. I think you all are fairly aware of that. That said, I'll hand over to Hans-Dieter Schumacher, who's going to talk us through the numbers in more detail of again, what we believe has been a very, very strong first half of the year. Hans-Dieter Schumacher. Yeah. Thank you so much, Stefan, and a very warm welcome from my side to all of you as well. A pleasure to go with you through the figures. You see on slide and page number seven, the order intake and the order backlog development of the first six months. As already mentioned, it's a very, very strong development in both KPIs in the second quarter, and this is setting a very, very good stage for the further growth. In figures, we grow order intake by nearly 37%, exactly at 36.8% to EUR 608.6 million. Yes, it's very much driven by Advanced Photonic Solutions, and it includes the first consolidation impact from the acquired late in the year 2021 acquired businesses, Berliner Glas Medical and SwissOptic. It's in total EUR 92 million. Even if you take out this first consolidation impact, then it equals to EUR 516.4 million. It's still a growth of 16.1% from the order intake side organically. It's really a strong growth. Our book-to-bill ratio is now 1.36, prior year 1.35. All these indicators showing our potential are very good and strong. The order backlog is even now at least for my eight years with Jenoptik, an all-time high with EUR 710.5 million order backlog after six months. I've never seen before, so it's a very high number. Yes, there are also some first consolidation impacts from Berliner Glas and SwissOptic. As we have booked the order backlog already in the year-end, it's only a small impact. If you calculate it's still organic growth of 26.2% compared to the 13.7% we show here. Our estimation is that we will convert 63.2% of this order backlog to revenue in this fiscal year, 2022. As already mentioned, the stage is really set for further growth. I show you now on the next slide, next page, the revenue development. Here you see the 35.8% growth after six months. It's including also EUR 73 million first consolidation impact of Berliner Glas and SwissOptic. Taking this out, it's still 13.7% growth, organic growth. Also a strong organic growth of double digits. Yes, the revenue of Smart Mobility Solutions is slightly above the prior year figure, whereas the revenue of the non-photonic portfolios is a little bit lower than prior year. Stefan will show you the divisional development laydown. Let me now switch over to page nine, the earnings, the EBITDA and the EBIT figure. We have done for you a small exercise because we have to take into account that in the prior year, we started already to realize and then to book special income, so to speak, coming from the acquisitions of TRIOPTICS and INTEROB. It equals after six months to EUR 18.4 million for the whole year later on, because there's more to come in the second half last year. It's around EUR 30 million, a little bit more than EUR 30 million. We did the exercise for a like-for-like comparison because in this fiscal year we don't have extraordinary special one-offs in our results. On a first glance, we reported it's only 4.4% increase in the EBITDA from EUR 66.6 million to 69.6 million. We managed, even if you look at this, to compensate the extraordinary impact and even show more results. It's also good news in this development. Taking this one-off into account, it's an increase of EBITDA of 44.4%, which is even more than the sales increase after the first six months. This is very important for us to mention this for you. Our EBITDA margin after six months in this year, 15.6%. In the prior year, reported has been 20.2%, but if you take the one-off effect out, it's 14.6%. The underlying profitability has also significantly around one percentage point improved after six months. This is the key message here. By the way, I can tell you if you do a like-for-like comparison on the organic EBITDA's. It's a flat development. It's stable. This means we have been able to compensate more and more the impact from the higher expensive supply chain and personnel costs. This is also good information, but I come back to it later. If you look at the EBIT margin, on the right side on this chart, you see it reported prior year EUR 42.7 million, which has been 13%, including the one-off. If you take them out, the EUR 18.4 million is only 24.3 million last year, which is 7.4%. This is the comparison to the 8.3% we have reached right now. It's also nearly one percentage point better. This including much higher purchase price allocation impact in the EBIT, which have increased to EUR 14.4 million compared to 8.9 million after the first six months prior year. It's an increase of EUR 5.5 million, and it's obviously coming from the BG Medical acquisition, which we booked mainly in December. We started to book it in December last year. We assume that for the whole fiscal year 2022, to take your question already right now, we assume that it will be EUR 26 million for the whole year. Last year, it has been EUR 16.4 million. The EBIT will be influenced by purchase price allocation effect, which will be roughly EUR 10 million higher than last year, and it's coming from the acquisition from BGSO. Now follow me, please. If you take the EUR 5.5 million on top of the EUR 36.9 million, which we report after the first six months this year, it's EUR 42.4 million. This shows you that the profitability, even the EBIT profitability, is exactly on the same level as last year, including EUR 18.4 million. The same, obviously as in the EBITDA figure, we are operationally able to compensate the one-offs in this year already after six months. It's good news, I think. To see the growth, if you take the one-off out, it's a plus of 50.2% in the EBIT, not a minus of 13.6, just to highlight this one last time. This is why Stephan and I, we are proud of our team, of the whole Jenoptik family, that we have done such a good job in the first six months of this year. If you then look at page 10 together with me, you see our income statement, our P&L. A little bit more in detail, I just want to highlight some points. If you look at the gross margin, the gross margin is now 32.7% compared to 33.7%. It has obviously to do with higher material and personnel costs, yes. If you remember in quarter one, it has been 2.6 percentage points difference. We managed in Q2 as promised to close the gap mainly via price increase. Just to give you this information, the gross margin is also influenced by the first consolidation impact of BGSO, which brings a very high EBITDA and EBIT margin with us, but a little bit lower gross margin than the fleet average of the group. Taking this into account, we are quite happy with this development. If you look then at the functional costs, which are increasing from EUR 89.3 million to EUR 110.8 million, please don't forget there are additional costs with the acquisitions coming with us, people who joined Jenoptik family. You see the R&D expenses and the R&D output. We increased it, yes, with the consolidation of the people, but we are also spending, as promised and as, in our strategy, roadmap, fixed. We are spending money in our R&D area, to invest in future growth potential of the group. Selling expenses increased by EUR 10 million, roughly from EUR 43.3 million to 53 million. In this EUR 10 million increase is a EUR 6 million purchase price allocation impact, for customer relationship and order backlog from the BGSO acquisition. It's also a special impact reason for this increase. The admin is also increasing because of the consolidation. We have checked it. If you look at the organic base, the admin costs have been stable. Yeah. This is also very important. The other operational result, there you see the EUR 18.4 million, which are not in anymore from TRIOPTICS and INTEROB. This is the reason why it came down from EUR 31.1 million to 1.5 million. The rest I have already told about. Now another exercise, the earnings after taxes, which is very important for the earnings per share figures. Here you should also take out the EUR 18.4 million because they have not been tax relevant last year. If you take EUR 37.7 million minus 18.4 million, it's EUR 19.3 million, which equals to earnings per share of EUR 0.33, which then shows you a like-for-like increase of 24% in the earnings per share as well to EUR 0.41. Just to follow the logic I try to explain with the EBIT here. The last remark on this slide is concerning the tax rate. As indicated to all of you in the past, we are now aiming for a, let me say, regular normal tax rate as a headquarter German group. So we have now 27.6%, in the prior year, 10.3%. It has to do with the regional profit distribution and on the other side, deferred tax expenses resulting from the fact that we are now utilizing the tax loss carried forward. The cash effective rate is nearly stable compared to prior year. It's now 16.3%. Last year it has been a little bit less, but it's not worth to talk about. We are now heading for regular, let me say, German-headquartered company. This will go in the direction for the whole year. Yeah. Before you ask me the question later on. Anyhow. On the next slide, it's my last slide before I hand over again to Stefan, who will go with us and you through the divisional development. On the last slide I have with me here in our slide deck, you see the, of course, of very much interest for Stefan and me, the cash flow development, the free cash flow development of our group. You see, this is something we'd like to highlight for you. You see that the cash flow from operating activities before income taxes increased compared to prior year from EUR 31 million to 49 million. On the other side, the cash flow from operated investment activities also increased very much from EUR 19.7 million to 38.4 million. This has to do with our investment in the new fab in Dresden. It has to do with a lot of machinery and equipment. We are investing in our factories to increase our capacities. So it's planned. It's on our agenda for this year to increase the investment, but obviously it takes a very free cash flow from us. Taking this high increase in investment activities into account, we still managed to show you after six months EUR 12.6 million free cash flow of the continuing operations coming from the continuing operations compared to EUR 11.7 million after six months prior year. This, taking into account that we, in the clear understanding, Stefan and I, that we have to support our business for the second half, which will show you a huge rally in terms of revenue and profitability. We are preparing this with higher working capital, obviously, with higher inventory to be able to deliver. We increased our working capital to EUR 281 million compared to EUR 260 million at the last year-end. Working capital ratio, because of the increase in revenue, even decreased to 32.3% compared to 34.7%. This is a very much favored and supported development because of the second half of the year. Having said this, Stefan, I'm happy to hand over again to you that you go with us through the first half year of our division. Thank you. Yeah, thank you very much. As always, let's start with our core optics division, also known now as Advanced Photonic Solutions. Again, it comprises the former Light & Optics and some parts of the former Light & Production division. In Advanced Photonic Solutions, we do see an ongoing, very positive operational development. No question about it. We do see that in particular on the top line, but also in profitability developments. Which are, of course, influenced by a certain one-off factors that Hans-Dieter already pointed out, but the underlying profitability is very strong. Let's go to the top line first. As you can see from the numbers here and from the table on the lower half of the presentation on page 13. Our order intake in Advanced Photonic Solutions grew by a whopping 55.7%. Yes, from the first consolidation of SwissOptic and Jenoptik Medical. They both contributed in the first half, EUR 92.2 million, which is great. We are very happy to see that those acquisitions, at least in the first half year here, contribute very, very nicely and work out very nicely thus far. Order intake up big time. Revenues are actually following. I mean, yes, we are facing some challenges if it comes to supply chain and other things, but we manage. You see that our revenues are up 53.9%. Also very, very strong development. There is also a very good contribution from the acquired companies with EUR 73.3 million. We also can report that the TRIOPTICS continue to be a real growth driver for the company, and we can report that our photonics and our industrial solutions businesses are growing very nicely. Really actually across the board when it comes to APS, we see a very good top line development. It does have, as I said earlier, a good impact on the margins. I'm not gonna go into the details. Again, Hans-Dieter pointed it out already. Prior year did have a significant sort of one-time effect. Which of course, the comparator makes very difficult and very challenging. I hope that for you now, and for those of you at least who follow us a bit longer, makes it very clear why we are very, very happy with the profitability of Advanced Photonic Solutions as well. Let me just point that out because you might ask at the end anyways. You know, yes, political situation is challenging and, yes, again, we are not decoupled of that, but the demand for digitization solution, for solutions to transform our world into a more digital setup is so strong that we are not limited in any way, shape, or form by demand here, but by capacity. That's why we invest into more capacity with the new factory that we are building, with trying to get more experts on board. We are working hard to increase our capacity to fulfill the, what seems to be an endless, demand out there for our products and solutions. We go to page number 14 in Smart Mobility. Picture is also good, though a bit different. Not that much more difficult, but different. In Smart Mobility, our order backlog is very high, and due to the fact that we have an order intake growth of almost 17%, which is pretty good, given the environment. Order intake for Smart Mobility Solutions growing nicely. Here we do have challenges to convert order into sales. That is to do with, you know, there's this odd chip we might be missing for a camera or the odd, famous cable that's missing and, you know, all of these things. That as a result, the order backlog is with EUR 86.5 million on a level unseen before for this business. The challenge for Smart Mobility is to what extent we will be able to convert that order backlog into sales within this year. As a result of that, we have not been able to push higher costs from the supply chain into or towards our customers just yet, because again, we have to work down the backlog. Our efforts to raise price, which we do across the board in all our businesses, in Smart Mobility is basically ending up in the backlog at the moment, and you don't see it that much in the P&L here. Overall, though, we are confident that we are on a very good track with Smart Mobility. Let's say, demand is strong, and it's our task now, for the next couple of months to convert that order backlog into sales and with that to push our price increase and flush it into the P&L actually. We go to page Non-Photonic Portfolio Companies, also known as Prodomax, INTEROB, and HOMMEL ETAMIC, by and large. Obviously, we do have challenges here. There is no question about it. Our business in the automotive industry is under stress. The whole marketplace is under stress. The transformation of the automotive industry doesn't go unnoticed by us and we do feel that. You do see that the order intake is declining quite a bit versus an already fairly weak H1 2021. As a result, revenues are below expectation and below prior year. Despite the fact that we have actually invested a significant amount of money into restructuring already, profitability is under pressure, margins are under pressure in our automotive industry. At the end of the day, what it does demonstrate, for us at least, is our decision to focus ever more on those big mega trends that I was talking about in the beginning. On our strongholds in the digitization business, in semicon and in electronics and healthcare and life science, and then Smart Mobility has been the right decision. I think, you know, it just takes months. To be honest, in this business, challenges remain beyond the short term, and therefore, as I say, we made that decision to focus us even more, to focus the portfolio even more onto our growth drivers. I think it's pretty clear, at least from our perspective, that it was the right decision. It is the right decision. Diving a bit deeper into these different companies would reveal sort of different subtleties, but by and large, the automotive industry is under pressure. If you take it together, though, you know, all in all, to say, I think very strong second quarter, very strong H1 2022. We're very pleased with the fact that we can manage all those challenges in the supply chain and the capacity constraints we have. We invest significantly into sort of growth. We have a very strong order book. We do see demand, if anything, and growing, in particular in our core business around life sciences, healthcare, and in particular, of course, around semicon and electronics. Based on that and based on a very good order backlog, we raised our forecast for sales to come in between EUR 930 million and 960 million. We believe that we can convert about 80%-80.5% of that into operating profit into an EBITDA margin. That's that. Thank you very much for your time. Thank you very much for your attention. We're here to answer any questions you might have. Ladies and gentlemen, if you would like to ask a question now, please press nine followed by the star key on your telephone keypad. In case you withdraw that question, please press nine followed by the star key again. The first question comes from Craig Abbott, Kepler Cheuvreux. Yes. Hi, good morning. Thank you for the chance. I've quite a few questions. I'll just ask a couple now and come back. One is strategic, but the others are relating more to the whole balance between being able to raise your prices to offset higher material costs and what your suppliers are seeing. In particular, I'm thinking about your glass suppliers who still face obviously a lot of risk in the second half of the year. You've raised your guidance slightly at this stage already. I mean, if you could give us some insights on things like, you know, have your key suppliers of glass been able to secure their energy needs through this winter through alternative sources or whatever? I mean, you must have reasonably good visibility on the balance now between your material cost inflation and your price increases that you're putting through. If you could give us some color there. The second question for now is more strategic. Just wondering if there's any flavor, any update you can give us on your current thoughts regarding your various business units in the non-photonics companies. Thank you. Yeah. Craig, thank you very much for those two questions. With respect to the first question, I mean, you pointed to the one area that is the probably highest uncertainty in our supply chain at the moment. Glass manufacturers need a lot of energy to manufacture glass, and that is gas. We all know that. On the other hand, I think that the political arena in, at least in Germany, is by now aware of the fact that if you stop a glass oven, it's gone. There's basically no way to get it back. From all the discussions that we have, at least with politicians in Germany, it becomes clear that they are fully aware of that and that supply of energy, of sufficient gas to glass manufacturers is basically, for them, essential. Therefore, we can only believe that they will get enough energy to keep their operations running. Of course, if. Okay. For whatever reason, you know, the political decision will be otherwise at some point in the future, then that would impact us. It would impact us probably the more in sort of the beginning of next year. But to be honest, for me, it's hard to see. I mean, a lot of glass is manufactured, in particular in actually, you know, structurally not very strong regions. I think the last thing that politicians want is that we would lose a lot of jobs in these regions which are struggling anyways. I mean, I'm thinking about south of Thuringia and other places. Again, I don't have a crystal ball, which is almost funny to say crystal ball in this circumstance here. But of course, we don't have a crystal ball. I have to believe that our political decision makers in this country are at least smart enough to understand that if they cut off glass supply to glass manufacturers, it's the end of that industry. I don't think that's gonna happen. To the second question, in particular with respect Non-Photonic Portfolio Companies. i mean, there is, again, in that development, there are some differences in their top line development. Prodomax continues to be well on the way, I should say. You know, we do sales in Prodomax and the margins develop okay. Hommel is okay. INTEROB is under pressure. No particular news there. I know that your question actually points towards our thoughts around possible disposal of those assets. You know that I cannot give you any more details on that. We do have every now and again questions or requests, and every now and again, we are in talks with respect to a potential disposal of these assets. At this moment, nothing that's concrete enough to communicate here. Okay, thank you very much. I'll get back in the queue later. Thank you. Okay. Thanks. The next question comes from Peter Rothenaicher, Baader Bank. Yes. Hello, gentlemen. Firstly, congratulations on the strong performance of Advanced Photonic Solutions. You know, this margin improvement, this was really impressive. Could you please comment what was the impact on organic sales growth from the price increases? Here, a rough indication would be helpful. Yeah. That's a very good question. It's not easy for us to sort of give you details around it because, you know, for obvious reasons, we don't necessarily want our customers to sort of be fully aware of that. What we can say is that, you know, we have executed several rounds of price increase in this business as well. Obviously, it's a long-term business. It's a business where we're in sort of, you know, long-term contract most of the time. Nevertheless, given the pressure to deliver, we can manage to convince our customers that we have higher costs, and they should share some of that, and we see that. Now, giving you a number is a bit sort of difficult, but it's obvious that it worked. Maybe that helps. It's a substantial amount. Let's come to the less favorable side of the non-photonics business. You paid really relatively high purchase prices for INTEROB, Prodomax. You mentioned Prodomax is performing solidly. Given that the valuation has come down drastically, do you see overall here the risk of major amortization necessary in this area? Well, that's a good question. I mean, the question is what do you mean by major and things. Look, maybe the best way to respond is Prodomax works, and we have no reason by no means, you know, should somebody want to approach us with the wish to acquire Prodomax to sell it at a loss. Why would we do that? I mean, it's a good business. It's on track. It's growing. It's growing. You know, yes, it had its challenges throughout the pandemic, but we're growing out of that, and so it's good. No reason to feel under pressure to do a fire sale here. When it comes to INTEROB, I think, yes, that acquisition didn't work out as planned. I think it's pretty clear. We did already depreciate it. Exactly. We did depreciate that already. Not to the full extent, though. But it's fair to say that the post-merger integration of INTEROB failed, almost at least. Actually, let's be open here. It failed. We acquired INTEROB just weeks before COVID started in Spain. I mean, we talked about it a number of times, and then we run into what had been a very hard lockdown in Spain. INTEROB is in the middle of what's called Castilla somewhere, you know, very hard to get to. In the middle of nowhere. I didn't want to say that, but yes. all of those issues, COVID and cultural challenges, led to the fact that this integration didn't work out as planned. we, you know, wanted to help with adding a large project in the electric vehicle area, and quite frankly, we actually didn't help. We made matters worse with that. again, Prodomax worked out nicely. Why would we? There's no need for a fire sale, and we certainly don't want to sell it below any sort of, you know, realizing any losses here. Situation with INTEROB is different. as Hans-Jörg already pointed out in the background, we already depreciated some of it. That INTEROB from INTEROB. Yeah. Prodomax is okay, and there is no risk for Yeah. For the- Yeah. For the next.. For the in the future- Yeah. To do so. Yeah. I hope that answered your question. Yeah. Two technical questions. On the one hand, you had a loss from discontinued operations. I think this is referring to VINCORION. Yeah. What is the reason for that? All right. Yeah. Yeah. Peter, that's right. It's coming, and it's coming only from the closing of the selling process with STAR Capital concerning VINCORION on June 30. We realized a little bit higher than anticipated loss in the first six months at VINCORION. This is a difference which we did not book at the year-end 2021. This is the reason why there was a small loss coming with the sale of VINCORION after six months. Yeah. It's only VINCORION. Okay. Nothing else is coming up from there? No, not expected right now. Okay. The last point is regarding PPA. If I compare the second quarter with the first quarter, you generated EUR 3 million-4 million higher PPA. What is the reason for that? EUR 3-4 million higher PPA than in Q1, do you mean? For example, Advanced Photonic Solutions in the first quarter report, you mentioned EUR 4.1 million PPA effects weighing on EBIT, and for the first half of the year, it was now EUR 11.8 million. Yeah, you know, Peter, that the PPA calculation and bookings are open for the period of 12 months. And t he more we get in touch with the businesses and the development, the more we got knowledge, you know. It's all about BGSO, which came to us in end of November, beginning of December last year. We worked still the last weeks and months on the PPA, and now we have, let me say, a very clear picture. This is why I took the opportunity already to give you an indication for the whole year. The whole PPA impact we see right now, coming from TRIOPTICS in the past, from Prodomax, and obviously also from BGSO, will end up at EUR 26 million compared to around EUR 16 million last year. It will be for the whole year an increase of EUR 10 million, roughly around about. This is the actual, so to speak, standard knowledge of the PPA calculation together with our auditors, you know. Okay. Thank you. You're all right. Thank you. Bye-bye. The next question comes from Malte Schaumann, Warburg Research. Yep. Hi. First, just to follow up on the PPA side. I mean, I also saw that the PPA has increased in the second quarter, but at the same time, the total D&A level remains flat. What is the expectation? We see it EUR 3.5 million higher D&A, but only flat D&A overall development. Is there a specific explanation for that? We're struggling here. The depreciation is increasing for us. I can't follow your calculation, yeah. Okay. I'll check it. My number is too D&A with the Q1 level, so not reflecting the PPA increase. I'll check my numbers again with Leslie Iltgen. Okay. We'll double-check on that as well on our end, and then we can get in- Yep, sure. To the roots here. On TRIOPTICS. I mean, the company has some exposure to consumer products, and we are currently seeing a 50% slowdown in demand for smartphones, et cetera. Do you see kind of pushouts, change in the order behavior from customers and their business? That's a good point. TRIOPTICS does to a certain extent depend on consumer electronic products. So it's gonna be critical. We are watching that very carefully, and it will be critical for TRIOPTICS that certain developments for new products coming in particular, we're talking about extended reality and virtual reality here, coming in hopefully sooner than later. Sales are up for TRIOPTICS, but on the order intake side, TRIOPTICS is. I wouldn't say under pressure, but Sales are higher than order intake, let's put it that way. We are monitoring that very closely. I wouldn't go as far as saying we already see pushouts, but it is certainly something we are monitoring. Do you fear that orders might worsen from current levels? Or would you say that the, I don't know, drop or whatever you saw in the second quarter is already kind of a level that might be sustainable in the second half as well? That's hard to say, really. We're hoping that the order will be good for the second half of the year. I really hesitate to give you a particular sort of guidance on all the intake of a particular product line or one of the businesses of the portfolio. I don't know, we typically don't do that, but since TRIOPTICS is so important, the question is very fair. Again, from my perspective, it's a bit too early to say. It's a bit too early to tell. You know, it's not as if we're falling off a cliff here at all. It's good order intake for TRIOPTICS versus a very strong last year, though. I mean, let's remember that last year was very strong. We don't see that very same level at the moment, but if you sort of take a more long-term trajectory, then we're on track. At this very moment, no sort of big alarm bells, but as you say, certainly something we're monitoring very closely. Okay. That's fair enough. On Berliner Glas, SwissOptic, I think you shared a number of almost EUR 100 million order intake in the first half, so that's a pretty high one, right? Yeah. Was that driven across the board by all applications? Was there something specific in that kind from the product pipeline you see? Is that kind one way that could potentially hold up well also in the second half? The answer is yes. It's particularly strong for Berliner Glas, which is now Jenoptik Medical. Jenoptik Medical has seen very good momentum and that I think that should be sustainable. Why not? I mean, medical is a very sort of long-term business. For SwissOptic, it's very clear. It's semicon. That leads me to the follow-up question on semicon. Assuming, I mean, not what markets are currently expecting, but assuming that potentially a new customer, the large ones, okay, I think where ASML is in our demand will kind of slow down going into next year. Would you expect then that orders would also decline for your products or given the extended lead times, which probably last already well into 2024 potentially for some products, will help you to keep up a high demand, even if the end demand temporarily might kind of slow down a bit? Yeah. I mean, it's I think first of all, you're right. Nobody expects that at the moment, and it's hard to see. There is all the noise around Taiwan at the moment. If anything, you know, home shoring is more on the agenda than slowing down. It's speculative. If our end customers see a slowdown in their demand, what they would do is basically then relax the scheduling or the shipment schedules, which at the moment they're crying pull in, and then they might say, "Okay, don't pull in as much or maybe push out a bit more." But I must have never seen a cancellation of orders in this business, and I don't expect any. Yeah. Okay. My last question is on profitability in the non-photonic business that has thankfully improved in the second quarter sequentially. Would you say that the current level achieved in the second quarter is more or less the expectation one should have at a similar pace going then in the second half, or are there any specific effects, positive or negative effects, affecting profitability in the quarters to come? Yeah. I don't think any specific effects, to be honest. It does depend on the volume here. I mean, really, the challenge that we have in this business is volume, and that's, let's face it's order intake. We need orders that we can convert into sales. If we can get a decent amount of sales, then we can have better profitability. It's all to do with volume to them. Okay. Profitability is where it is, and, yeah, volume makes then the difference going forward. Yeah. Yeah. You see, Malte, there is a normal, fiscal year in front of us. The second half will be in all businesses much stronger. Yeah. Stefan already pointed out, to be honest, from my point of view, I see poor P&L from SMS, from Smart Mobility after six months. They will make a huge step forward in sales and profitability in the second half. The same will, if there is no deeper disturbance in the business, happen with NPC, with the non-photonic portfolio company. Okay, good. Thanks. You're welcome. You're welcome. The next question comes from Michael Kuhn, Deutsche Bank. Yes, good morning. Thanks for taking the questions. Firstly, on a smaller bit in your guidance, in the annual report, you say you plan to increase the cash conversion rate to 45%-55%. It was 28% last year. With CapEx running at relatively high levels right now, are you still on track to deliver on your cash conversion guidance for the full year? That would be the first one. Secondly, when you presented your medium-term targets, you obviously had an M&A component included as well. I think that M&A component at that time was based on debt and equity financing, but the share price has obviously come down in the meantime. What is your current thoughts on M&A, and do you see any attractive assets in the market? If you see them, what could be the financing options for those? Thank you. Yeah. Shall I take the second one first and then hopefully go into the cash conversion a bit more this time? Yeah. Yeah. On M&A, you are right. We do see our share price being lower than at the time. Dare I say, below what we believe is. Well, anyways, not where we wanted it to be, where we believe it should be, to be honest. That has an impact on, obviously, our ability to do certain equity components here, or our willingness. And when it comes to targets, I think you understand that we were not in a position to share particular names here. As always, we are always in discussions with potential acquisition targets or with partners. From a more sort of strategic perspective, I think we've made a number of fairly large acquisitions for our core optics business. For the next couple of months or quarters, I think our optics business, APS, needs to, let's say, digest a bit and focus on post-merger integrations so that we don't see any sort of fallout from that. Yes, if there is an option for sort of capacity expansion. That's certainly something we would look into in more detail. But by and large, for the next month and maybe a couple of quarters, I don't think that we should see a lot of larger M&A activities for APS. That might be different in a year from now, but for now, I think we need to make sure that the post-merger integration works well. Different on the SMS front, we always said that our mobility business is somewhat below critical mass, and we need to grow that organically and via M&A. The trajectories for growth here, the vectors for growth are quite a number. I mean, there's technology that we could acquire. There is in particular regional expansion. There are significant regions around the globe where we are not really present with that business. Last but not least, if there's an ability for and possibility for industry consolidation, we would be interested to consolidate. We're working on all these three fronts, but nothing at this very moment where we are in a position to, you know, share any particular names or anything. There's no process that's at least at that stage at the moment. We are always in discussion around those factors and those sort of corners of the world. And yeah- Still on the cash conversion rate. Yeah. Michael, to combine the first part from Stefan and the cash conversion rate, just let me share with all of you the leverage of our group after the first six months. EBITDA last 12 months in relationship to our net debt, which has significantly come down already after six months, to a little bit more than EUR 500 million from EUR 550 around. Our leverage right now is 3.16%, coming from 3.41% at the year-end. We are improved already very close to investment grade. With our guidance fulfillment and forecasting this, the leverage at the year-end, as the company is to date, will be very clearly below 3%. Yeah. Headroom for maneuvers, let me say it this way, also on the debt side, and we have still unused means in the pocket. Yeah. Because you pointed out the actual share price is not of interest for us coming to the fact that it could increase and take the 10% from own shares. At the moment, it's not attractive, let me say it in this way. There is room to maneuver, and we are aiming for it. This is leading to the second part of your question, the cash conversion rate and the free cash flow. Because after six months, we have been around EUR 12 million, which is normal for the first half year, but we are not so strong in cash conversion rate and free cash flow. We have said nothing to the new guidance because we are still optimistic and self-confident that we will reach our original targets, which you have mentioned. We will improve it clearly from 27% last year. This is why we did not say something to it. We will stick to this range you mentioned. This with the increasing or the higher, much higher investment, having this in place. This combines both of your questions a little bit. Very helpful. Thank you. Thank you. The next question comes from Richard Schramm from HSBC. Yes, hello, gentlemen. I have a quick one on the working capital development, which was, in my understanding, surprisingly moderate, although it has gone up quite a bit, of course. Compared to other companies, what we have seen there, I found it relatively moderate what you have on your balance sheet. Can you give us an idea how long your inventory secures you? Not production. Is it all complete already for the second half, or are there still risk of supply disruptions there? What about pricing on the supply side? Do you see also, as some companies reflect a certain top level and that the big move we have seen over the last month seems to be over for now. Thanks. I think Hans-Dieter Schumacher would not agree to the statement our working capital is. Yes, sir. I don't agree either. I think our working capital is going up significantly, but it's an interesting observation. Yeah, it's something that we see across the industry, obviously. We will work hard to manage it down as much as we can. I don't think that we have seen any sort of. We have lost VINCORION, yeah. Don't forget, we have taken VINCORION out of the balance sheet. That's a good point. That's why we saw the figures a bit. The figures are not so easy to compare because now in the working capital, VINCORION is out. Yeah. Completely. Maybe then that makes it more transparent, but we are actually fairly closely monitoring over here. Yeah. Yeah. the other hand, we do want to support growth, and we're pretty clear on that. I don't think we have seen sort of leveling off of price increases or cost increases in our supply chain at the moment. It might be a bit early days, and we're typically fairly low or late in the cycle. I think that's a fair way of saying it. We're typically late in cycle, and we have long-term contracts, both with our suppliers and our customers. At the moment, I don't know, either of you have heard anything, but I haven't heard anybody saying, "Well, the big pressure on cost is over." No, I have not heard that. No, no. It's still there and we increased our inventory very significantly. That's true. The balance sheet is stable around EUR 1.7 billion, even taking into account that we took out VINCORION. Yeah, you see there should be other drivers. Yeah. This is inventory, mainly inventory. As the businesses in SMS and NPC did not work out quite well in the first month concerning sales revenue, the trade receivables are not so much increased. We managed to balance our supply chain a little bit better than in the past. I gave out a clear target to increase the DPOs with our suppliers. If we can't avoid price increase, at least I can, and this was my assumption together with purchase department, we can at least push back a little bit payment terms to a longer time, more fitting to the selling side, to the revenue side. We did it in the last month. This is maybe a little bit better for you to understand the mechanism. We are quite good, but we have high working capital, yes. My question was, how much of your production plans you have for the second half are then covered? Are you already secured with your inventory here, or do you still have the risk that if there would be a supplier falling out that you also have trouble in achieving your sales target, for example? Stefan mentioned the glass industry. Overall, I would say if nothing very much unexpected happens, we are quite safe to reach our guidance for the fiscal year because we have high work in process inventory level in the factories. We have it in the inventories. Yes, we have bought some goods in advance. We have, by the way, also prepared ourselves if our company is forced to save gas for heating. We have installed heaters, and we have bought oil to produce more warm working space for our workers so that we can save gas consumption from our side in the production if it's necessary. No, at the moment, we are really quite optimistic that we can deliver. So to speak. Okay. Thank you. You're welcome. There is a follow-up question from Craig Abbott. Please go ahead. Yeah. Hi. As mentioned, I got back in the queue and I just a couple of three or four mostly really pretty quick questions, I think. One is just you talked quite a bit about the cash conversion earlier. That was certainly encouraging. Is it possible to get like a roadmap and obviously not exact figures, but a roadmap for your CapEx plans for, well, the rest of this year and maybe like an early indication for next year? That would be the first question. The second question is kind of a double question. It is technical regarding the cash flow. First part of that is, could you give us an update on where you are now in your factoring program? Second one is, just if you could just highlight what the provision reductions were and if these were all cash calls and what they were related to. The third question is just, and I know this is, as well, you know, very, very difficult one to add on color on. You know, we talked a little bit earlier about slowing order trends in TRIOPTICS, still very resilient order trends in Semi and so forth. I mean, any early thoughts at this stage, in general about 2023? Thank you. I'll take the last one. That's the more easy one. Easy. Okay. Well, because it will be very qualitative. It doesn't have to be that quantitative. No. In a qualitative way, I am fairly certain. Now please, this is not going to be a guidance in any way, shape, or form, but I would be very surprised if we don't see further growth in 2023. Mm-hmm. Okay. In our business, overall. That sort of by now gives us a floor to the guidance for 2023, and I think everybody here in the room is saying, "Oh my God, what's he doing?" No, I mean, serious point. I mean, we all. Again, we're back to the crystal ball territory. We don't know. Nobody knows Nobody knows how the political environments shape up and, you know, do we get another wave of COVID and all of those uncertainties. I would say that at least in our core businesses, for the next nine months, I don't see a major slowdown. Now, the second half of 2023, I don't know. At least for the first half of 2023, I think at least in semicon business, we will continue to see high demands. You know what's going on. Anything beyond 12 months from now on is very difficult to say. Very difficult to say. Overall, that's why I'm saying I think we should at least aim for further growth in 2023. Of course, you know, again, we will come back with a more concrete guidance. Or in other words, we will cross that bridge when we come to it. Again, yeah, from an overall perspective in semicon, at least I don't see any slowdown for the next couple of quarters. Okay. Should I take over then, Stefan? Concerning your questions, correct, CapEx plans and factoring program. Let me start with factoring program. It stays stable at EUR 25 million. There's no intention to increase it. I think EUR 25 million for a year in a company close to EUR 1 billion in sales and EUR 170 million plus EBITDA is not so bad, yeah. No intention to increase it. It's stable, and it's in place, and there's nothing more to say from my point of view. The transparency for all of you, it's the volume is EUR 25 million. Yeah. Concerning the CapEx plans, we have already said in our guidance earlier this year that it will be clear above prior year, which has been around EUR 50 million, yeah. Taking into account that Jenoptik is building a fab in Dresden. We acquired 24,000 square meters ground. We paid it now. It's, by the way, burden the free cash flow in the half year with around EUR 5 million already. All in all, it's booked, yeah. You see it. All in all, you can think about a region of, let me say, around EUR 100 million in the next one, two. This year and the next year after. Because we will have to significantly invest in our factory sites. For example, in Berlin, where we acquired Berliner Glas Medical, it's necessary to move out from the ASML factory site. They need the space for their development. We have found a new place to be in Berlin. It will be rented, but we have to invest in the space in clean rooms, in machinery and equipment. We will do so. It's in our budget, it's in plans. By the way, the rental for the next 10 years, we have to take into the balance sheet as investment, but it's not cash flow relevant. It's IFRS 16 rule. Yeah. Just to give you this information as well. There is a gap between cash relevant investments and activated investments in the balance sheet, yeah, coming from this impact, for example. All in all, Jenoptik will certainly invest in the actual year and the following year a high amount in capacity expansion and new capacity. I mean, we talked about recently to all of you, that we will double our production capacity in the EUV technology for ASML with this investment. This needs investment. Yeah. It's split over the next three years, this fab. Yeah, because it will be ready in the beginning of 2025. This is an indication I can give you, Stefan? This you can say. Yeah. It will be on a high level, which we will have this year already, but it's in our forecast and within our budgeted figures. We have to do. It's the basis for further growth and profitability growth. Yeah. Sure. Okay. The last remaining category of question was on the provisions. Yeah. Provisions for? Moving and provisions for. Yeah. For all of them. All states stable. Yeah. There's been no big movements. No extraordinary things to report. Yeah. This is nothing extraordinary. Okay, thank you very much. Thank you. At the moment, there are no further questions. If you would still like to ask a question now, please press nine followed by the star key. There's a question coming from Dirk Schlamp, DZ Bank. Hello. One question for me. You said in Smart Mobility, there are currently supply issues. Components are missing. Can you elaborate on this in more detail? Is there mainly a chip shortage? How long could this situation persist? Nothing in particular anymore. I think there was a point in time when we had a very particular component missing about a year ago, but that's fixed since about a year. Now it's just the overall availability of components overall, Camera chips as well as electronic components and of course, you know, capacity in the factories and things. Nothing in particular, just the overall component shortage, in particular electronic components that we all see in the industry. Will it be fixed? Well we certainly work hard on getting our purchasing teams working hard on getting the needed material. And we also work hard to make sure that as much of the related price increase as possible, we can push to our customers. Finally. No, it's not. It's no major issue then at the end or? It's not a single particular issue to report. It's more the overall difficulties of getting components like we see in all other industries and across the board. Okay. Thank you. You're more than welcome. Well, if there's no. There's one- Oh, there's more questions. Okay. There's one more question. Uh. Coming from Miro Zuzak, JMS. Yes. Hi, this is Miro speaking from JMS Investment. Can you hear me? Yes. Yes, we can. Thank you. Just one question regarding, again, depreciation. It was raised before, although a bit, let's say, not in all clearness. Maybe you can clarify. You basically had a very stable depreciation and amortization figure of EUR 16.3 million in Q1 and EUR 16.4 million in Q2. Now, if I take your Q1 and Q2 presentation, I understand, and you mentioned that, before, that your PPA actually went up from EUR 5.4 million in Q1 to EUR 9 million in Q2, to a total of EUR 14.4 million for the half of the year. Yep. Now, if I then take the remainder, basically the EUR 16.34 million minus the EUR 5.49 million, I get to a decrease in depreciation from close to EUR 11 million down to EUR 7.5 million. I think that was also basically the question that the colleague wanted to ask before. Can you please comment on that? Not just basically the fact that the depreciation went down in Q2 versus Q1, but also the fact that it went down versus last year, despite the fact that you basically have now integrated all these acquisitions. Thank you. Again, obviously a question that needs maybe a bit more analysis. We will check into it. We'll look into that. Maybe if you can contact our IR department for further information here. Frankly, we have to check. We have to double-check here. I think that's important. Yeah. I cannot. Okay. I cannot find the calculation, but I think we understand now where the question is coming from. The underlying D&A basically declining quarter-over-quarter. If you know, if D&A stays the same and PPA increases, then the underlying D&A is going. Maybe that's to do with M&A activity or portfolio changes. Rather than just speculate, please allow us to drill into it. You touch base with our IR department to clarify. Apologies for not sort of having a satisfactory answer here at the tip of our fingertips. Yeah. Okay. Cool. Anyway. Thanks anyway. Bye-bye. Bye. Now there are no more further questions. Back to you for some closing remarks. Okay. Well, thank you very much for, first of all, for your questions and for being with us today. I think it's, I hope at least it's pretty clear that the fundamentals in Jenoptik, the fundamentals in our business are in place, both in short term and in long term. I am convinced that we are going to see a very strong H2. Just raised our guidance. Let me also reiterate our midterm guidance, which points to EUR 1.2 billion in sales and around 20% in the EBITDA in 2025. If we compare that and keeping that in mind, and compare that and analyze our market cap and our multiples, then I think it's fairly clear that Jenoptik share at the moment is a very, very good investment. I'll leave you with that thought. Thank you very much again for your participation today. Thank you.