Ladies and gentlemen, apologies for the delay. We warmly welcome you to the Q3 2026 earnings call of the Kontron AG, and I am pleased to welcome Kontron CEO Hannes Niederhauser, CFO Clemens Billek, who will guide us through the presentation shortly, after which we will move on to a Q&A session via audio line. And with that, I am handing over to you, Mr. Billek. Hello and a warm welcome from my side. Let me guide you through the most recent company highlights and the Kontron's Q3 results. We had significant growth in key markets. There was a strong growth again in defense. It was actually even stronger than in Q2. In Q2, we had a growth of 32%. Now it's even higher at 36%. The software division grew at 15% and transportation grew at 5%. All in all, we achieved an adjusted EBITDA of €50 million. That's an EBITDA margin of almost 14%, and it's plus 5% if we compare it to the 3rd quarter in 2025. The operating cash flow has been reversed from negative, so it's back to the positive in Q3 after negative Q1 and Q2. And we expect a strong operating cash flow, particularly in Q4 this year. Most of you already know we had a significant cash-in. We received €126 million outstanding from the Congatec transaction. The com business deconsolidation in Q3. Um, Yeah, we, we told you in summer that we expected it later, but eventually it was already paid out in September. Let me give you some company highlights as well. You are aware that Ennoconn and Foxconn have launched the tender offer in Q3, mandatory tender offer. It has been finalized and concluded already in Q3. Ennoconn has increased its stake from 28% to 48% in that time. Following the tender offer, we are now preparing— we have initiated a significant synergy program. With savings of around €40 million per annum for Kontron alone. It had started already and is expected to materialize within the next years. I mentioned that defense is growing. Defense is further growing fast. We expect around 30% growth. to around €200 million, could be even slightly above that at year-end. The growth in defense is expected to continue for Kontron in particular in 2027. The green tech restructuring has been completed in Q3. We expect savings out of that restructuring program of around €30 million on a run rate basis. You start to see— you started to see it already in the recent results. 444 persons, FTEs, have been reduced already out of the target of 500 FTEs. Let's look at the major KPIs of the 3rd quarter. Revenues are down 7%. Well, there was a slight adjustment if we compare Q3 '25 to what it actually meant on an adjusted basis. We take out the IT service operations we have sold in the meantime. But it's still down 7%. Well, the supply chain crisis was weighing on the result. You see that clearly in Q3. At the same time, the order entry It looks like we had a book-to-bill of just 1. However, you have to bear in mind that we had a significant— we had a very strong order intake of almost €500 million. And at the same time, we decided to take out €130 million of Volkswagen orders for wall chargers. We took it out of our books. So on a net basis, it looks unchanged. However, the order intake was very strong. We'll tell you more about the Volkswagen outlook and why we did that in the 3rd quarter. Later on. The gross profit was also burdened, it was even more burdened by the delinquent backlog and the supply chain crisis, is now at €148 million in the 3rd quarter. At the same time, On the EBITDA level, you, you start to see our cost discipline. We had reported EBITDA of €41 million, but you have to bear in mind that we had, uh, the 3rd quarter restructuring charges again of more than €8 million, translating into an adjusted EBITDA of €50 million. If we compare that to last year reported EBITDA of €48 million in the 3rd quarter, we had a slight growth of 5%. That translates the same with the same with, with the same pattern, uh, in net result of €25 million. Compared to €22 million reported of net result in the 3rd quarter last year. That's €0.41 a share in the 3rd quarter alone. Well, the operating cash flow, it looks significantly lower, and it is significantly lower, but you have to bear in mind it has been reversed, so it's positive operating cash flow. in the 3rd quarter, and it's despite of the supply chain crisis that we achieved €18 million of a positive operating cash flow. in the 3rd quarter. Looking at the KPIs for the first 3 quarters, revenues are down around 2%. If, if we compare to €1.1 billion Order entry versus revenues, book-to-bill, €123 million. And significant order intake, €1.5 billion of new orders alone. The gross profit was down 7% to €459 million. And the EBITDA is up 7% on an adjusted basis to €151 million. What are the adjustments there with regards to the EBITDA? We had a very strong EBITDA in Q1— Q3 2025. It was almost €200 million. But please bear in mind that we had significant deconsolidation effects from the com business deconsolidation with Conga Tech, where we received €126 million now in the 3rd quarter of this year. Operationally, it was an EBITDA last year of around €140 million. If we compare that to the adjusted EBITDA this year, taking the €25 million total restructuring cost into account, we have a growth of 7%. These restructuring costs are done. So the, the by far largest part of the restructuring charges have been taken already in the 3rd quarter, and you should not expect significant restructuring charges charges on that program going forward. Same pattern with regards to the net result. We had, uh, €74 million of adjusted net result, or $0.19 a share. On an adjusted basis. Operating cash flow, it's positive also for the first 3 quarters. You, you have to remember we had negative Q1 and Q2. Overall, Q3 had compensated also Q1 and Q2, and we have reversed total cash flow. We expect a significant cash in from on the operating side, significant operating cash flow. of around €100 million in Q4 alone, in line with the, um, last years where always Q4 was by far the strongest quarter in terms of operating cash flow. in the 4th quarter. Let's have a brief look at the control group balance sheet. which was further— which has further improved. Uh, the equity, uh, grew by 4% to €777 million. Translating into an equity ratio now of 43.4%. We came already strong above 40%. Our target is to, to be at least in the midterm above 40%. We were already above 40% at almost 42%, and we're now over 43%. And you still see a growth and improvement in Q4. Total net debt went further down. Obviously, you see the impact of the CongaTech cash-in. Uh, the total net debt, uh, went down to €135 million, and it's going to get to around or below €100 million Well, at the same time, working capital is, it's up. It— we have been significantly reducing working capital in 2025. Now it's going up due to the supply chain crisis, and you see where's it coming from. Well, if you look at inventories, it went up from €318 million to €400 million. It's the impact of the supply chain disruptions of €82 million in total. We expect lower inventory at year-end. Could be getting closer to the inventory level at year-end '25. We expect a level of around 350 at least. Well, where is that coming from? We expect a reduction in delinquent backlog in— at year-end, and this will translate also obviously in reduced inventories. Additional disclosures. In more detail, looking at the revenue growth breakdown, we had reported third-party revenues in the first 3 quarters of €1.2 billion. €2 billion. of 1.8%. If we take the deconsolidation effect of the comp business last year into effect— into account, it would be a deduction of €39 million. We sold the part of the IT service business in Bulgaria and in Hungary, another €19 million. That translates in a real organic growth. Why is that? Why is there, uh, why is there negative organic growth of 1.8%? Well, we had significant delinquent backlog of almost €70 million in Q3. Um, It started already in Q1 with €33 million, went up to €50 million, and we're now at €70 million, probably the peak in Q3. If we look at the revenue growth, uh, with regards to GreenTech, you see that the GreenTech business, which is not the division anymore because it has basically halved from €120 to Um, €64 million. And if we deduct that, the effect from the GreenTech business, uh, we had adjusted revenue growth basically of 3.8%. Looking at the EBITDA, I already mentioned we had reported EBITDA of €126 million. The restructuring program cost us around €25 million in restructuring charges, mostly in personal expenses, layoff payments. It's finished now, and it was expected at the beginning of the year at €25 million, and we are, we are very close to that amount at the end. Resulting in an adjusted EBITDA of €151 million. Well, status of liquidity, uh, we now have around €250 million cash on hand and €200 million of available lines. So acquisitions are possible again. We have presented the new core dividend policy already at the Capital Market Day, but let me reiterate it here. Ennoconn, our core shareholder with 48%, rather ask for dividend than share buybacks. They obviously, they don't want to go in their shareholdings above 50%. It would be detrimental to all stakeholders. They expect dividend growth. For 2024, we had dividend of 60 cents a share. You're aware that in 2025 we did not pay out the dividend as we executed a share buyback program. We have bought back 30 million of shares. over 7%. For the fiscal year 2026, the dividend proposal is expected to be at 65 cents a share, and that dividend is expected to grow further until 2030, where we expect a dividend of €1.50 per share based on our long-range plan. If you compare it to our current share price, that's a dividend yield of The dividend payouts are to be funded from free cash flow. Well, we have a cash conversion target, a cash generation capability measured by free cash flow. The cash conversion rate target is currently 75%. EBITDA, um, as operating cash flow, and the larger part of that being the being the source for the dividend payout. If we take the free cash flow for the last 12 months, we would be at around €46 million. Let's go to the comparison of the last 2 years, the bigger picture of the Kontron development. You see that revenues grew not over the last 2 years. You see the impact of the divestments of entities, most notably the comp business, uh, and also in 2026, the impact of the delinquent backlog. We're now at €1.1 billion for the first 3 quarters. Gross margin pretty much unchanged compared to last year, uh, 41.6%. That is going to grow again. Closer to the 43% we had 2 years ago in Q3. The EBITDA, well, you see the first impact of our cost discipline and the first impact of our restructuring program. Which cost us €25 million in the first 3 quarters. Same picture with regards to the net profit, where we are getting operationally stronger. That's improving. If you look at the equity ratio, A lot. It's been improved from 35% to now over 43% already, and to be further improved in Q4. The working capital obviously has improved until year-end 2025. to below €300 million. It's been rising over the last 3 quarters. We expect an improvement in Q4 based on the reduction of delinquent backlog. Well, it was obviously burdened by the supply chain crisis. The operating cash flows, um, pretty insignificant in the first 3 quarters. Why is that? It's seasonally weak. We always have the by far strongest impact of operating cash flow in Q4, and we also expect a very strong impact this year of around €100 million. If you look at the personal headcount, you see the, the impact of the restructuring program, particularly in 2026, while we have not laid off our engineering capacities so far. Net debt development, well, constant improvement. We are at €135 million now of net debt. We are well within the target range of 0.5 to 1 times EBITDA. well in Q3 that there was a big step and we are actually on the lower level of that, on the top side of that, closer to 0.5 times EBITDA due to the cash-in received in Q3. This €135 million is going to improve further in Q4. So you're gonna see maybe even below €100 million of net debt at year-end. With that first overview, I'm handing over now to Hannes. Good morning also from my side, and also a warm welcome to our earnings presentation. If we talk about the orders, it was already the same the last years. Kontron is the world champion receiving a lot of orders, and for some reasons we always lagging behind of delivering, uh, all of that orders. Also Q3, a lot of people liked our technology. And if you look at these slides, we went from €2.5 billion firm backlog to €2.75 billion. In this, there is the reduction of €130 million what we don't count anymore from Volkswagen. Otherwise we would be even at €2.9 billion. That translates in, uh, for this year we have— it's now November and we have significant orders on the books and scheduled shipments for €1.614 billion. So if we manage, let's say, from our delinquent backlog to reduce it by 40 €550 million, we will make our numbers as we said. Um, Where do these orders come from? Kontron is the company of, of light and shadow, or the 2 speeds. And we see also this quarter, and as in the full year, a lot of tailwind. coming from transportation. We won, for example, Germany. You heard probably about the 2 hours of delay what happened in the in the train system in Germany. Well, the result of that was a nice order for us with 3 digits to improve the time of standstill in the worst case. We received a 3-digit order from France. Also 3 digits. Um, we have from Belgium an order, we have from Spain an order, and it looks like in this area we are gaining more and more market share. We have also huge orders in the pipeline for train with the biggest order of our history of €250 million coming in Q4. Um, So train works very well. Also, um, Defense works very well. You don't see here defense contracts because it's more or less every of our customer forbids us to, to talk openly about these contracts. But I have orders in the same magnitude, A, in process, and B, taken in Q3, which, uh, really summing up to several hundred millions, uh, on this. Mainly out of the, of the drone business in Europe as well as in America, and we even developed a new technology, new standard for the drones now. Called VNX, which is a, let's say, miniaturization of VPX system for communication of drones. So the coverage for this year is 100%. If we talk about the 2 segments, what we have, um, The IoT segment Um, was slightly down in, in revenues. That's also, uh, you see here, 837 versus 779. That's the divestment of last year, and, uh, so also depressed. We are not doing as good in the IoT division as we do in the software and solutions. If we talk about the supply chain issues There's 4 products which are in allocation since 6 months. It's flash memories, it's DDR4, Uh, RAMs, random access memories, Intel CPUs, and, uh, at the moment most problem comes out of PCBs. All of the products are used heavily by AI systems. And, um, prices increased a lot. If we talk about our gross margin, um, these supply chain issues, we have to buy sometimes parts from the from the gray market, which probably have higher— or from the brokerage, which is probably higher cost. On the other hand, we have a trend of getting gross margin up by pushing our software and solutions, gaining more and more share. So delinquent has also some small impact on the gross margin, but that's covered by our software and solutions business. The 6860, we had 30 million in Q1, we had 50 million in Q2, now we have 70 million. First of all, one of the reasons is that we have a strong order intake all the time, but maybe we cannot ship. This 70 million translates right away in 50 million of more inventory, what we bought all the parts and then one small part was missing to deliver. And it also translates in let's say, emergency parts. We increased our stock just to, to be able to deliver in this time. Since around 1 month. We have partially more and more access to Foxconn SAP system and their preferred supplier list. And we hope, uh, or we are sure that this will solve itself by Q4 by using the purchasing power of Foxconn. Foxconn, by the way, is not suffering so much from, uh, allocation of chips. About, uh, America and our international business. We have factories in the USA which are also ITAR and US Army approved, AS9100, that's the defense standard. ITAR is the approval of the US Army. They absolutely have to be local, so this gives us tailwind. We consider with the technologies what we have and the products what we have, we should easily raise USA to 30%, uh, China is, is not so easy, but especially areas like avionics or high-speed trains, we're also gaining more and more momentum in Asia. Uh, and we uh, released our synergy program with Foxconn and Ennoconn at the last Capital Market Days. We are really preparing on that, and, and one of the first and biggest synergies is in the USA where we more, uh, will cooperate with Ennoconn and Foxconn on the sales channel in, in America and creating together one of the strongest, uh, supplier bases to, to that region. And, and by the way, uh, Ennoconn, Foxconn like our brand, and also some— we also will sell some products of them with, with Kontron brand, which fits into the IoT space. IoT space. Better Looks, the software and solution— that systems had been started in 2020. The difference to the common IoT solutions is it's particular solutions for vertical markets. We had last year 4 divisions where we put the focus here. We closed one, that's GreenTag. We still, uh, we focus now on defense and trains and cybersecurity. All 3 areas perform very well. The GreenTag burden, we're in a good way to close that, so it's not the problem. We currently— most of our engineering goes into that segment. Obviously, this was not affected by the cost-saving program. We're even hiring and increasing in this area because we have growing business and Yeah, EBITDA margin. is 70% here. That's burdened by GreenTag, uh, from the last things what we had there. Should be 20% without it. Yeah. And the second thing is these special solutions are very close to the customer, a lot of technology and software content. This business is currently mainly in Europe, but we are since, uh, the last months starting to roll out globally. Together also with Ennoconn, for example, we won in Thailand a railway system. The Graal-compatible AI-supported Kontron OS. which is taking a lot of our R&D expenses. Um, we, for example, have a wallbox team which, which comes from GreenTag. We moved to Graal services and to ARM. What will be a strong tailwind is we have strong interest in Graal from Ennoconn and Foxconn, which just will create the software center and service center in Taiwan as well as in China to fulfill that needs. And I see here a good request for our Graal cybersecurity products. Transportation, the high-speed trains, we are market leader. We're the only supplier dedicated also for the new standard FMCS. Which is not in place yet, but in all tenders there's the request for upgrade compatibility to FMCS, so we have that. We are currently expanding with FMCS to neighbor areas of that business, to the 112 alert systems. needed in that area, as well as to the service technicians for service of trains and railway stations and so forth. The book to build in transportation is huge. Over 2. And defense and aerospace is currently our strongest area. We did grow here year over year over 30%. We won several drone contracts, and we are a major NATO supplier for encrypted data communication. Talking more into details, um, If we talk about our Cybersecurity. There is more and more AI going into that area, and, um, So we are, let's say, technology-wise, in forefront of that technology. Now we see also, uh, last time I, I said still not growing that fast, but now we're starting to see growth in that area as well, which is a 10 to 20%, uh, and particular with this interest from, from Foxconn and Ennoconn, I would see a huge, uh, speed up on that. Here, GRAI is a regulatory necessity. The European Union invented it. And people said, I don't want to start it and, and integrate it that fast because it's only cost. But the, the trend is going ahead and Today, if you have products which are not GRAI compatible, you will really lose market share. We— our products per se is not GRAI products, it's Uh, parts of GRAI products. Yeah, for example, if we control a welding robot, the welding robot has to be GRAI compatible and not our control box internally. But if the control box is not, then the robot has no chance. This year at the SPS show, the biggest industrial show in Europe, which will be in November, the main focus topic will be a Cyber Resilience Act. Because it's, it's getting more and more important for the industry. So Next week I'm in, in Taiwan and in 2 months again, followed by a whole delegation of, of Graal engineers and cybersecurity specialists to build up that software center in Taiwan. Talking about defense, as I mentioned before, that's growing the most. We have here our limit is more or less our capacities at the moment. We are winning a lot with VPX, which is our high-speed data communication system with strong encryption to protect sensitive data. We certified meanwhile 3 factories and are in the process of number 4 for AS9100, that specific requirements needed for defense. We have the ITAR approval, uh, and yes, we benefit from the strong spending of all countries. New is we just released a new standard, vNX. This is the VPX systems in a very light and small form factor. Specifically designed for drones. And at the moment, we see really the biggest, uh, business coming from the drones. I'm not to say too much about it. There's a German, uh, high-speed drone, ultrasound jet, which is considered the best drone of the world, killing any human fighter jet. That's a business in the double-digit, almost triple-digit millions. The, the Deutsche Bundeswehr, what we delivered last year and I had a contract with €20 million and had been already more than doubled, and we're delivering full steam on that. That's together with BlackNet. And we are just in the next step qualifying another product in this direction, a switch for the Deutsche Bundeswehr to— for the data communication there. Then we have an American drone manufacturer Well, it's considered startup, but that's already $10 billion of revenues, uh, which is number one in the US drones, which has a high content of Kontron. Yeah, what I want to mention, we won this year a €60 million contract. I can say that as well from Telesat. This is a competition to, to Musk's Starlink system. And, uh, has this, uh, low Earth orbit satellites, uh, where we do the communication with. And, and, and that, that's €60 million what we received from that. Um, Thales is doubling this year, was our customer for a long time. It's the first time we are now involving their AI systems together with NVIDIA. Um, We are also official NVIDIA partner meanwhile. Yeah, and, and, and, uh, Google is also going into that satellite networks in, in USA. So there's a lot of, of order intakes in that business. What I'm not so allowed to, to release in big numbers, but the defense business is, I believe, even better doing that than the transport business. And what is doing wrong or bad is obviously the standard IoT business. If we talk about trains, As I mentioned, uh, we will hopefully receive in Q4 the biggest order in our train history. In a magnitude of a quarter billion or more. Um, that's one. So the 50% market share is, is still expanding. So we're winning market share all the time in that area. And the main reason is that there's, let's say, competitors are not did not put that much development energy in FMCS. There was recently the InnoTrans show in Berlin, which I was there as well, and I really can say almost any country of the world is interested in our FMCS solutions. Um, Yeah, and it's driven by infrastructure spending. It's driven by the Silk Street. So a lot of those countries from, from China towards Europe look for that high-speed solutions. And we are on the way outside Europe. We also offering— we won Thailand, as I said before. Last year we won Egypt. And currently we are quoting India. We are doing that always with big partners. In Thailand, it was with Foxconn. Egypt and India, we are offering with Siemens. Because we are not that strong in services and so forth in that countries, we are delivering more technology. But we're expanding to a lot of countries at the moment. Yeah, cost-saving program. As mentioned before, that's finally done. 400 people have been somehow replaced or outplaced within the first 9 months. Most of that came out of the green tech area. And, uh, 44 other contracts had been signed. So we will end up the year, even with doing nothing, at 6,200 people. There's no more, um, cost to this program to expect. It's done. Everything is, is prepared and reserved of And as I said before, it was mainly dedicated to the green tech business, which is, uh, let's say now 25% to what it was 3 years ago. Um, Just in solar, from our top 5, 6 customers, 5 of them went bankrupt. Like Sonnen recently and so forth. We have no further reduction plans, so we are now seeing the effect of going— people are going up again because we are hiring in defense and in railway and in software. We also reduced external support engineers, 54. That's all of them, by the way. In that area. And we also closed locations, and for example, Halle, Mauerstetten, and Munich. So some of those factories, we even closed them totally. The cost of the whole restructuring was planned to be at €25 million, and we met that plan and we kept that plan. What's the impacts of it? Um, We expect, uh, €30 million of cost saving in '27, uh, majority of that in, in staff cost, but also in other costs like this locations what we don't have any longer. see already, uh, almost €6 million, €5.5 million savings in the Q3 staff versus Q2, which is the first time that the lower cost is exceeding the Uh, the severance costs, yeah. So that's on the way, and I'm positive the €30 million will be happening, and it will be also integrated in our budget, uh, '27. A key issue what, uh, we want to mention today is Volkswagen. We had a contract with them for Uh, 200 €60 to €270 million of selling close to 500,000 charging stations to Healy. That's the subsidiary of Volkswagen for doing home charging. Well, they principally did not buy a lot according by the contract, so we started already to, to, to claim money from them, and, uh, the order what we have with them is binding. So there's legally no way out. Volkswagen will have to pay a compensation. I expect that to happen in Q4, but you never know. Uh, at the moment we are still negotiating. We are in parallel preparing to, to put the claim at the, at the court. Just to increase the pressure and I expect really a compensation, let's say, exceeding €20 million. significantly, yeah. on, on that, uh, but we do not expect revenues out of the business any longer, which might even be the case different because the, the customers of this wall charging system so far they still need service and they still might need products. They can't get them from Volkswagen. We are negotiating with them probably to serve that ongoingly. That's also part of our, of settlement discussions. We don't know what will be the result. I don't want to go too much into details because the lawyers of Volkswagen might also listen to this earnings call. Um, But it's something we— Volkswagen as well as us wants to have that settled, let's say, in the last 3 to 6 months, next 3 to 6 months. Um, There is a new program what we're working on. We are working permanently. Um, Kontron has relatively high R&D costs because we do know a lot of technology. We don't want to reduce our technology, but we want to reduce our cost for the technology. I believe we are the world market leader in low engineering cost, which is currently fully loaded including social cost and everything. 49. Well, in, in just in Germany alone, that range would be at 85 to 90. So we have a lot of design centers in, in relatively cheap areas, and we want to further reduce the hourly rate also with the help of Foxconn to get to 43%. We have currently low-cost design centers in Romania and Bulgaria, Macedonia, Slovenia, and Malaysia. And, uh, with Foxconn, we also talk about, uh, getting more capacities in Vietnam and Philippines. China and Taiwan. All those R&D capacities are clearly focused on software and solutions. 2/3 of all of those costs go there, and with this new program, that's a significant saving. in the next 2 years of, of around, uh, 30-40 million with this 2% of reduced cost and the reduced hourly rate. Ennoconn and Foxconn. I mean, Ennoconn increased its share to almost 50%. They don't want to go over 50%, not to harm our railway or defense business. And actually, all the synergies I'm talking here will not happen with those 2 divisions. which, uh, let's say reluctant to work with Chinese people. So, um, all the synergies I'm mentioning here are happening with the traditional IoT business segment mainly, yeah, but also on the software where I mentioned Foxconn is very much interested. One of the synergies what we really will start this year is a joint sales channel. using each other's products, having contracts in place to, to calculate for that. That should be happening also by, uh, Kontron brand, which is considered as a leading one in the IoT business. So also Foxconn products will be sold via Kontron in America. Um, then Uh, the next market we want to attack together is Southeast Asia, the so-called Tiger countries. We are discussing with 16 countries and sales organizations within Ennoconn to cooperate in selling our products. Our revenues in this area is currently zero, but we won, for example, the Thailand contract for one railway station I mentioned before. In Europe, it's the other way out— away. Um, just next week there will be electronica show in Munich. And we will the first time offer, uh, joint ODM services. So we have an ODM department with engineering a lot and also production. And we offer the backup of Foxconn, Ennoconn production services, which are by definition very cheap, but, uh, in China. So our customers can have a European production and pay more, can have a China production, and since all the engineering tools are together we can interchange between the factories very easily, and the customer also can have a product designed in, in European engineers very close to the customer and produce in China if he wants to, and he has still one hand to, to be responsible that will be Kontron. So there is no, no feeling that they would have 2 suppliers there. We hope also to, to represent that model the first time next week, and but we have already in the forefield a lot of requests for, for offering that. And the second thing, when I started my job like 40 years ago or 30 years ago. There were a lot of European companies who sold their product in China, and they asked for Chinese manufacturing to be local. Today the world changed. There's a lot of Chinese technology companies who want to produce in Europe to have the the label Made in Europe. Yeah, it's also— that's something where Kontron wants to benefit from. We have the connections to these Chinese high-tech companies, and Foxconn is one of them. If we talk about technology, I mentioned already before we will expand the Kontron portfolio with, with Foxconn products. I give you example. We're doing some modules, um, that's very low cost. Control systems for, for lower cost. forklift or something like that. Yeah, elevator, um, system like that including software is less than €100. Uh, and, um, a leader in ARM is MediaTek. This is the fastest growing CPU company of the world, growing faster than Intel growing faster than AMD while growing around the speed of Nvidia and also having a high market cap. They are leading ARM in 5G connectivity. And we will sell in America there some module with the MediaTek ARM. We will not design that, we just sell it. And it fits into our family. It will get our software on board. So, uh, that's an easy way to expand our product portfolio. With this, there's the world market leader Advantech in that area, but Kontron plus that product will have a much wider product range than Advantech. The second thing is we have this 5G NAT, you know, our cooperation also with Qualcomm, a good business. We have almost $300 million of orders on the books for that. And we just recently started the delivery of the 5G NATs, uh, 2 months ago for Mercedes. Um, We also will offer 5G NATs with MediaTek technology, uh, with a different functionality, and this will bring us forward also in the 5G NAT 5G NAT area. And the last point I mentioned already before, Foxconn as well as Ennoconn is very interested in our KRAR and KOS software. We are setting up software in, in We already started to hire people in Taiwan as well as China. Taiwan is the first step. And we will install KRAR on Foxconn products. There's a high interest from that area. Particularly on AI-controlled ones. What is the impact? The total impact from this sales channel is $84 million by '29. Next year we will split that 50/50. For next year I see $14 million additional EBIT for Kontron on that. Yeah, and the last word, the cooperation on— and that should go up to $36 million. In '29, euro, which is our 50% on the €84 million, uh, what I mentioned before. Supply chain, as I mentioned before, we have now a BI bridge to Foxconn SAP. We can participate in their preferred supplier list, and that will help us to reduce the delinquent backlog. Hopefully everything in Q4. Which ends to say about our, our forecast, we confirmed the current guidance of around €1,600 million of revenues. EBITDA, the €225 million is organic, so €200 million will be— €220 million will be the one— €200 million will be after the restructuring. program what we did, and we also stick to our 2030 forecast to increase the share of EBITDA significantly, 16%. And that's mainly done by increasing our software and solutions business. Thanks for your attention. If you have any questions, please go ahead. Thank you so much for the presentation. Ladies and gentlemen, now it is your turn. Today we are taking your questions in person via audio line, and for that, please click on the raise hand button below to ask your question. And should you be dialing in by phone, please press star key 9 to raise your hand and star key 6 to unmute yourself. And we already do have some risen hands. Mr. Daniel Lion, you should be able to unmute yourself and ask your question. Yeah, hi, good morning. Thanks for letting me on. I would have a few, maybe to start with your backlog. Can you please clarify this $511 million that you state as backlog for 2026. How much of delinquent orders are included in this backlog still, and is there Is there still some part of Volkswagen orders included, or have you taken those orders out of backlog fully? Um, I like to answer that pretty fast. There's no Volkswagen orders included in that. Volkswagen released the information that they withdraw from that market. And they're ordering nothing since 3 months. Um, and the delinquent backlog, let's say a major portion of that is included because we are positive to ship it. Okay. And with regards to your guidance, especially now focusing on the EBITDA and the margin, how much of a compensation would you have included in the guidance, or, or is this on top of the, the guided $225 million? EBITDA, adjusted EBITDA? We have already invoiced some costs to them. So this is included. Uh, but that is probably 30-40% of the total amount what we expect. The rest is not included. Uh, so 30 to 40% is invoiced. 30— I have one-third is invoiced roughly. Yeah, yeah, okay. And, uh, the rest, uh, so we do— did not include— if we would have a settlement, it will be a improvement in the EBITDA. Uh, okay. Um, Uh, when focusing on your defense business, uh, it's growing strongly. Uh, have you, have you seen any any negative reactions, uh, in latest tenders, uh, defense tenders where you might have been excluded due to the The not majority stake, but still high stake of Ennoconn. Good. Um, Since, since mid of the year? We have never been included by any tender because we have a unique product what they need, but we got verbal reactions that this is not let's say, great for them. Yeah. So I believe they would have a better stomach feeling giving us an order when the stake would be lower. But as long as it's under 50%, they did— there is no official reasons to exclude us. So we never had been excluded. Okay, okay. And then another strategic one, you, you said you want to expand your, your mission-critical communication or suits to blue light organizations within the— from transportation, basically. How much of synergies would there be and what are you exactly aiming to tackle within the blue light organizations? I would say the synergies are very high. For example, one of the products what we showed at InnoTrans was some kind of FIMCS iPad, a special computer which has connectivity to all the, the train networks. As well as FMCS, secure communications, and it shows the technician how to— whatever he has to do when, when, when he just repairs a some, some equipment on the, on the station. Yeah, so this has high synergies. It's also FMCS, I would say. From our technology, we can do that with 80-85%, and also the customers are the same. more on the railway stations. And if we're doing— yes. So would this be rather like control center equipment, or is this basically the, the on-the-road equipment, or the— No, not on— it's But also for the blue light organizations. It's It is not replacing signaling at the moment. It is equipping service technicians. All those 20,000 people who work for Deutsche Bahn should have such a system. And the opposite is also for the ops crews, yeah, as for all the people who, who work for Deutsche Bahn and for subcontractors of Deutsche Bahn who fulfill tasks at the railway systems. The synergies is high. And the 112 system synergies is also high because, uh, security is the highest part in that. And, um, We, we have that, and, and it's, it's no, no big step from our railway control system to a 112 system to alert firemen and all those others. Okay, and 2 more. Can you provide an update maybe or outlook of what you would expect in terms of cash conversion for '26? You know, obviously you expect a really strong 4th quarter. Not only P&L-wise but also cash-wise. So where do you think that we could end up in terms of cash conversion and when would you expect to reach the 75% cash conversion going forward? I believe operating cash flow, we always had 75%. If you go historically on Kontron, you always see that the last quarter is by far the strongest. In the last quarter, we do operating cash flow from, um, $60, $70 million and more. That happened in '25, that happened in '24. That will happen in '26. It's a normal process. Okay, and a last one, just a clarification on the 5G nuts business. When I understood you correctly, you mentioned that you started delivering Mercedes nuts already? Yes. And produced in Düsseldorf. I had the Minister of North Rhine-Westphalia in my factory. Okay, but wasn't this aimed actually to start the nuts business in the 4th quarter, at the end of the 4th quarter? with the Asian clients and Mercedes to join later. Maybe can you provide an update on the timeline of the nuts business and the impact? Mercedes was, let's say, pressing on the, on the speed. That's why they were first. Asians have samples. And I would say Asians might have the first deliveries in December. Mercedes had the first deliveries in October. And with regards to the volume, how should we think of the volumes when going into '27? We have this $300 million of contracts on the, on the on the book. What we see A, at the moment, is car manufacturers are slightly slower than they should, which is very normal in technology things, except Mercedes, who is pushing. But what we also see is that some competitors really are behind in R&D. So, our system is one of the first one who really works. There's quite some, a lot of technology challenges in that, I can tell you that. And obviously we are not finished on that yet. But our NADs are more expensive than Asian, but they will have car compatibility. Not now, but let's say in the next 5, 6 months. Okay, but you targeted like $100 million in annual revenues at 10% EBITDA margin, right? Yeah. So are we there yet or are we higher? A bit lower? No, we're lower. Yeah, 27, we, we might— I, I said 26. We are lower than the target, but not significantly. And 27 would meet this range? We think we will be in the range, yeah. It depends how the cars ramp up. Okay, perfect. Thanks a lot. Thank you very much. Now, Mr. Knut Hinkel, you should be able to unmute yourself and ask your question. Yeah, good morning. Can you hear me? How do your customers perceive that? My question would be, do they have alternatives? Do they require discounts or other concessions, or are they prepared just to wait for the shipping? That would be my first question. Second question, you said that there will not be— won't be any restructuring anymore in Q4. Is that also true for '27? Do we have something on the horizon already? which might need restructuring? And my third and last question would be on your 2030 outlook. You roughly guide for €1 billion of additional revenues compared to '26. So here, can you give us a rough idea what's currently what you have currently on your mind, how much of that should come from organic growth and how much should come from acquisitions? That would be Yes, thank you very much. First of all, helpful. Thank you very much. Um, If you look at our products Software and solutions is very unique. We are single source in that areas and customers have no power to replace us. Um, that's, let's say, the lower the technology content, the more they are able to, to find replacement for us. The lower is the threshold. If I go to the other direction, like EMS services, there is what, what we inherited or what we bought from, from Cat Tech, there is a higher chance that it would be replaceable. Since we moved that business to ODM, it's also very, very secure. I cannot remember— I'm 40 years in the business I cannot remember losing a customer except for bankruptcy. Um, so that's this. Uh, the CSP is over. We don't see any more cost-saving program cost in, in Q4. We don't see them in, uh, '27. What still we mentioned, and just, just to, to say it again, we have this $25 million of Volkswagen issue, which I don't know the number yet. The auditor will define Uh, this, this non-cash effective, but we will have no cost savings anymore. When we talk about the $1 billion, where they come from Um, as Clemens mentioned before, we have quite good money in our, in our pockets. That's one. And 2, uh, I'm also— don't worry about the cash flow because usually the Q4 is, is the strongest one in the last 5 years. It will come, uh, so we have enough money to do acquisitions. We're looking at it carefully. They will be mainly in the software and solutions area. I would say from that $1 billion more than 60% will come out of organic growth, 40% from from potential acquisitions. So more organic. And the second answer is within our company, we are the company with the 2 speeds. And the software and solutions defense particular drains will deliver most of that organic growth. Yeah, thank you, that's helpful. Thank you very much. So, um, there's another person with a risen hand, Mr. Tim Wunderlich. You should be able to unmute yourself. And it would also be awesome if we would limit the questions to 2 to 3 questions per person so that everybody gets to ask. Thank you. All right, thank you. Thank you so much for taking my questions. Can you hear me? Yes. Thank you. All right, yeah. Good morning. Thanks for the presentation. Okay, I'll try to be brief and then jump back in the line because I do have more than 2 to 3 questions. But sorry, I couldn't listen to the entire call, so my apologies if some of this has been discussed. But first of all, gross profit, you said, um, and I'm talking about gross profit in Q3, you said it was burdened by the delinquent backlog. Can you just explain this in more detail? Is this, you know, so the gross margin was down almost 3 percentage points. I was thinking maybe about higher component costs. chips, memory, and so on, that, that is the burden. And what are you doing to counter this? So that would be my first question. Then my second question, there's a big other income position in Q3 versus close to zero in the year-ago quarter, and this contributed to €12.5 million to EBITDA. Could you explain what's behind this? And then finally, How big was the EBITDA burden of GreenTech in Q3? When you're not only including the final restructuring expenses, but when you're also including the operating losses? Thank you so much. depreciation and damage what we had. The gross profit, Clemens, at least I myself don't see that we're 3% down. Also, Q3 should be only— should be 41%, right? It's 41.6%. Yes, so it's not 3% down. Um, it is in the same range than last year. And what we see, we see a burden, like you stated, that we sometimes buy chips from, from brokers. They're more expensive, and usually we have the power to to expense that to the customer, but the process is also not always fast enough. Yeah, so there is a burden from the brokerage chips. But on the other hand, we have our defense and transport business growing faster. They're not impacted at all by delinquent backlog, and this brings the gross margin up. So both effects, uh, wave each other. The second question, uh, the income, we had that stated already before. We have invoices to to Volkswagen in. It's also not sure if this will qualify at the end for other income or not. We have to discuss that for auditor. But, uh, there's already compensation invoices to Volkswagen in, and that replaces the revenues, let's say, what we didn't do with Volkswagen as well as the $20 million. Was that correct, or was it more? More than $20 million? I don't want to say the exact numbers because if I would say the Volkswagen Yeah, okay, okay, understood. If I, if I may just quickly jump in here, I think you said in total you expect compensation payments from Volkswagen to the amount of lawyers would say, hey, he said he only wants $20 million. Yeah. And the— and, and just so I understand, the $20 million would come on top of the $12.5 million? They will come on top of the so far invoiced, and we did not invoice $12 million. We invoiced probably in the range of $9 million. Yeah. And, uh, these were other, other income. Um, okay, thanks. But that comes on top. That's correct, that it's not in the forecast. Thank you very much, Mr. Wunderlich. We'll get back to you after the next person. Um, Mr. Malte Schaumann, you should be able to unmute yourself and ask your question. Yes, good morning. Can you hear me? We can hear you. Um, actually, Tim asked, uh, of my questions, so, but on the cost savings, um, the $20 million target. So this is on the $30 million target. So this is out of that is, as you had $3.5 million in the 3rd quarter, probably $6 to $7 million in the 4th quarter. So yeah. We'll incur something like $10 million in savings this year statewide, and then with a $30 million runway, there should be $20 million in incremental savings then. Next year. That'd be the right way to see it. We had $5.5 million in Q3, and we still had some restructuring costs in there. So you should see for sure more than $5 million in Q4. Let's say $5.6 million. And next year you should see the full $30 million, maybe $28 million, because we still have some That's a smaller thing still to come, but I reserved for— but the '27 program, it's fully in. Okay, good. And then on the Q4 sales uptake, did that already come through in October? I mean, if I take the 500 you have as a target for the quarterly sales, divide that by 3, So the monthly average would be 160, 160 to 170. Is that the sales number you had already seen in October? So is there proof or do you have gained visibility through the month that you are able to actually catch up? Again, can you say that again? Do you already see the expected catch-up in sales in the 4th quarter coming through in October, actually? That was the question. Q4 will have like every year, higher— let's say significant higher revenues than Q3. Yeah, this year we need about 500 in comparison to less than 400. So I think the ramp will be quite steep. So this is still the number you're shooting for? I'm shooting somewhere between, let's say, 440 to 510 depending on the delivery backlog what we deliver. Okay, so without any deliveries, the worst case, so to speak, would be 440, and then with a good chunk or the majority, we will reach 500. Okay. And what's your visibility on the supply for the delinquent backlog? So how confident do you feel in regards of achieving sufficient parts? It's hard to be 100% confident because we are using new sources. We're using Foxconn, yeah, and that's a new process. But what we see is that Ennoconn and Foxconn do not have delinquent backlog. So as long as we get that rolling with them, we should be able to deliver everything. Okay, good. Last question from my side would be on the PCB side. PCBs or other parts, uh, that red lights might— my new supplier is Xingding, which is a subsidiary of Foxconn. And the biggest PCB manufacturer of the world. They, uh, They have no capacity problems, they have no material problems. So I hope that with Xingding, my problems in PCB is over for the rest of my life. Okay, good. Thanks. So this had come up as a kind of a new issue in the supply chain. Do you see any risks then going into 2027 around Thank you very much. Um, now with no further persons in the queue, Mr. Tim Wunderlich, if you would like to ask your remaining questions, you're very welcome to do so. Yeah, I had— thank you. I had one more question which I already asked, but I think the answer was missing. It was the EBITDA burden of GreenTec in Q3. including both the operating losses and the restructuring expenses. So what did it look like in Q3? And then what do you expect in Q4? How should this Or should be— how big should be the swing to profitability, stripping out the operating losses and the restructuring expenses? Thank you. The You want to answer, Clemens? Let me jump in here. on the €10 million operational impact, there might be still some things because just the last quarter, Green Tech cut in half for revenues again. And I might be still some portions, but for sure not from restructuring cost. So there might be still something in Q4, but it's not major. Understood. Thank you so much. Obviously, we have been doing the restructuring with a view of improving the remaining green tech business and taking out significant amount of costs. But yes, so the €25 million we have incurred in cost was largely also with a view to reducing our cost space in the green tech area. However, the, the EBITDA of Green Tech was, as you rightly guessed, also negative. So if you take out the impact of around €10 million in the first 3 quarters, negative impact of the Green Tech operations still in place, we would still— we would have a significantly higher EBITDA. So what's expected in the 4th quarter? The 4th quarter, well, the restructuring is done, so there is no significant further negative EBITDA impact to be expected. Thank you very much. So now, last reminder to everybody, should you have questions, you're welcome to ask them by audio line. By clicking on the raise your hand button. And since we don't seem to have received any further questions, we come to the end of today's earnings call. Thank you for your interest in Kontron AG. If you have any further questions at a later date, please feel free to contact Leon Philipp Kleiss of Investor Relations. A big thank you also to Mr. Niederhauser and Mr. Billek for your presentation and your time. I wish you all a successful day and hand over to the board once again for closing remarks. Thanks a lot from my side, and if you want to reach out, you can also reach Hannes or myself. We're available on our line.