Ladies and gentlemen, welcome to the Q2 2024 Results Conference Call and Live Webcast. I am Irene, the Chorus Call operator. I would like to remind you all that participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and then one on your telephone. For operator assistance, please press star and then zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Mr. Andreas Pleßke, CEO. Please go ahead. Ladies and gentlemen, also welcome from me. If we go to page one, we usually start with Koenig & Bauer at a glance. As we had announced on Q1 and on various occasions thereafter, Q1 and Q2 were a difficult phase for our company. I believe for the whole market, but we'll talk about our company today. We have announced the figures about a week ago, so that is for discussion later on. What we will do today is we'll summarize where we're at, but more importantly, we also have more clarity now and announce more of what we're going to do in the second half year to recover from the situation and come to the year-end result as we predicted it. That is also the first bullet point that we have here. We confirm our operational guidance in this fairly difficult market environment that we have had, and that is between EUR 25 million and EUR 40 million. What? Between EUR 25 million and EUR 40 million at the lower end. We confirm that. We also confirm the turnover that we have forecasted this year. News and highlights for the first half year. Spotlight. I'll come to Spotlight later on, so just at a glance. Spotlight will be a mix between cost-cutting, restructuring incentives and, let's say, discontinuing certain models of certain products, product improvement costs, and generally, it'll follow the line that we're in the process of harvesting and not sowing again, so we will also reduce, as we had expected, R&D expenditures and focus on selling in the market. That what we're doing there will be a mix, but it'll be fairly classic program. It'll involve all sorts of things. It'll involve cutting costs, but including cutting personnel costs and cutting personnel. That is something which in this environment and in our company is unfortunately necessary. We have announced that the special costs which we will expect for this will run between EUR 30 million and EUR 45 million. I'll come to drupa. I'll come to strategic partnerships. I'll come to PowerCo and our new, hopefully future little business. On figures, there's at least one figure, which we think is fairly good. The highest half year order backlog of EUR 1 billion and EUR 21 million, has been achieved. The revenue of EUR 532 million and the EBIT of minus EUR 33.9 million is below the previous year. That has very much to do with the slow order intake in Q3 in 2023 and also the beginning of Q4. We sequentially increase and, a slight positive note, the last month of the second quarter shows signs of a turnaround, by being a positive month. We have a lower revenue in Sheetfed and Special due to the market-related order intake and a slight increase in Digital & Webfed. The outlook for 2024, we, again, confirm that our operating EBIT will be at the lower end of the forecast range of EUR 25 million-EUR 40 million. We confirm our revenue target of EUR 1.3 billion despite our difficult market environment. The EBIT target of 6% of approximately EUR 1.5 billion in full year 2026. Why do we keep reiterating that? We believe that the improvement that we have to achieve will be mainly due to our own measures due to Spotlight. If we go to page two, I just want to go through four figures with you. If you go to the top left box, order backlog and order intake, you see the EUR 1,021 million order backlog, and the order intake of EUR 398.6 million. On the revenue side, you see where we are at, and that is basically the main explanation for our poor operating performance, but Stephen will tell you about that later. On the book-to-bill ratio, you see an extraordinary book-to-bill ratio in Q2 of 1.43. The EBIT is, as we announced, at minus EUR 23.7 million in the second quarter. The operating EBIT is minus EUR 13.7 million. The difference between those two is mainly the cost for the drupa. Now, news and highlights of the first half year. We have announced changes in the management. In reality, if you make a restructuring, and that's what we need to do at Digital & Webfed is a restructuring. You need fresh management, faces, dynamics, and fresh wind in the whole thing. You start with the top, then you work down to the other levels. We have more or less announced a new management board consisting of Philipp Zimmermann as the CEO. My colleague, Christoph, who has absolutely built up the digital footprint of this company in Würzburg. He's spending most of his time now with customers all over the world, in strengthening these ties and securing orders for our inkjet program, including the RotaJET and the HP. That's what he's doing mostly now. Philipp Zimmermann is running it operatively, and we also have a new CFO, a very well-established CFO who was in our company in a different business unit before. We also have some other, let's say, changes in the management on all levels. That's what I would call the fresh wind, and I think you can already see this fresh wind. The second thing which we need to do is fresh wind isn't enough. We need to restructure. The restructure will be cost-cutting that will involve, as I said, personal cutting. It'll involve other cost-cutting. It will not be entirely in Digital & Webfed, but Digital & Webfed is one of the main focuses because of its loss situations over the years. It also includes the other main areas of Spotlight, which is Banknote, group-wide projects, and the holding. If I want to reiterate on that, Banknote is a profitable company, but the profitability, let's say, can be substantially higher, due to our market position that we have. The program here is not a restructuring program, that's, let's say, an operating excellence program in bringing us back to, let's say, former EBIT figures. The holding in general, as I've already announced on marketing conferences, we have to get slimmer in the holding. That itself is a goal. If we look at the footprint that the companies have, and that the companies, eventually the segments, eventually have to pay what the holding does, because most of what the holding does are shared services. To be able to have the operating segment in a better financial position, all of these shared services and the cost for these shared services also need to go down, because it is also a major part of the segment's profitability. The holding costs, which includes not only typical holding functions but as I said, a lot of shared services, will also go through a cost decrease process, which again, will involve personnel and it will involve other costs. We have certain group-wide projects. We focus on very few R&D projects which are still ongoing. We switch the whole company from strategically planning new products and features of products into a harvesting scenario where we have a very good program. This very good program now we have to market and improve the operating profit out of this program. The costs of these special effects will be between EUR 30 million and EUR 45 million, and they will mainly relate to adjustments in material and personal expenses. A matter of fact, that we switched from developing a portfolio and new product ideas to marketing and harvesting it was also why we had, I believe, an extremely good drupa presentation and extremely good, I mean now by the reaction which we got from customers. That's not entirely limited to orders on the drupa. Orders on the drupa are always something like. We have wonderful machines, no doubt about that. Nobody comes to the drupa, looks at the machine, and falls into a happy dance and says, "Is there a contract? Please, where do I sign?" These signatures are always something which happen, and of course, we have discussions with the customers. One of the main effects is what's the reaction of the market to where we stand. That has to do a lot with the attention we get, the amount of discussions which we lead, the feedback from the customers that we have. It can be measured in KPIs, but it also can be seen in a whole summary. I think there are two messages where our customers were particularly happy with our program. First of all, they have seen a whole workflow, in the packaging world, from pre-print to two different versions of print, Sheetfed and Digital, to two different versions of die cutting, rotary and flatbed, to a folder gluer line. They have seen the whole of the other machines that we have. drupa is not a Sheetfed show. drupa is a printing machine show. We were also there with all of the other products. We didn't display many of them because that, again, is a matter of cost, and we focused on the workflow on Sheetfed. We were there promoting, of course, the RotaJET, promoting Banknote. We actually had visitors there from the Banknote world, quite a few. Flexo, MetalPrint, and the whole Koenig & Bauer world was there in various forms of display, and we had meetings booked with everybody who counts as our customers. We have marketed orders of about EUR 250 million, legally binding of those were about EUR 200 million. I believe wonderful. You must see the drupa in the light of what can a company like ours do in marketing. We are, in the printing world, a household name, nobody kind of asks around who makes an offset printing machine and who makes a digital printing machine. We are one of the very few in the world. How do we market things? Do we market them through local trade shows or through magazines or online? That doesn't work with our machines. You have to bring people and technology that is a running machine together. Therefore, drupa is the unique event. Nobody travels that far at that cost very often. Since this happens only every four years, it is of essence. It is of essence that this is the point of time where you present your company with a new product range. The visitors that we had were similar in companies which visited the drupa than in the past year. There was a very high attendance. To just give you a few figures, there were 6,000 visitors only from India. There was a very strong worldwide presence and actually this has now to carry the enthusiasm over the next years. The next years on the economic outlook are, at the moment, a bit dull, that is the whole machine tool, the whole VDMA. Which also includes our machines. As I've said, our development program, we have declared that we are through and we are in the harvesting situation, we still do a few things with partners where the development weight is not with us, but it's with partners. Two things which we successfully launched or even sold machines at drupa, was digital printing presses for metal prints. There is the MetJET product family. There is a multi-pass machine, which we developed with Durst. The first one's already purchased by a customer and running, we have announced a partnership with the Italian company, Neos, which makes a single-pass digital machine, which is also suitable for metal prints. This is no serious additional expense from our side, it increases our footprint in the digital world, also in the metal printing market, where we believe a lot of our future will lie. An example on the next page eight, just shows you what our customer, Tetra Pak, who hopefully eventually will buy many more machines, does to promote our machines. He promotes the RotaJET also with our name company name, and Koenig & Bauer, in all countries. This is an example of what he does in China to promote the digital business. This is not exactly order intake from us, it shows that there are major players like Tetra Pak who promote digital printing, whilst they're doing so, they promote us and our machines with it. If we go one page further, PowerCo orders a machine from us. As we have announced, there is one machine which does the dry coating, which we developed here in Würzburg at our expense, and we have some contractual agreement with PowerCo, which is 100% a subsidiary of Volkswagen, of how to test that machine and bring it, hopefully, to serious condition. PowerCo decided that they wanted a second machine to speed up the process, and they ordered that, so we will sell that. You could say it's the first sale, but it's not the first sale of a serious machine. We still have to go through the development phase, and the development phase is not finished, so I cannot yet announce that the whole thing works wonderfully. I can announce in the middle of it that Volkswagen made the decision that at least it seems so. The expectations seem to be that it works, so they placed an order for a second machine at a absolutely, let's say, acceptable and for us, nice price. We return to the figures in more detail and would like to hand over to Stephen on that. Thank you very much, Andreas, and also good afternoon or good morning, good evening from my side. I will walk you through the next few pages of financial figures for year to date, Q2, as well as first six months. There are certainly better days for a CFO than to present the figures that I'm about to present to you because as already mentioned, and as frankly as already indicated in the previous months, we had a very weak first half of the year. There's no other way to state the facts. The figures across the board on the P&L side and cash flow side are weak. There are, of course, positive messages to come, particularly looking towards the second half of the year. We have strong order intake in many segments, which gives us momentum moving forward, and we're convinced that the worst is behind us moving forward. The purpose today is to present the Q2 figures to our investors and to the capital markets. Those figures, of course, are weak. Starting at the top line positive side, order intake is up 16% year-on-year at EUR 641 million. Just to put that in perspective, this morning, VDMA, the German Mechanical Engineering Industry Association, announced their figures this morning for the overall machine market, was down 8% year-on-year. We see in printing machines, perhaps also driven by the drupa, but in general, with 16% increase in order intake, that's good news and gives us some positive momentum moving forward. You see that also on the right side of this slide, with order backlog increasing now to over EUR 1 billion, at EUR 1.021 billion, which is the highest figure at mid-year that we've had in the recent history of the company. That's the good news. On the pure sales or revenue and earnings side, of course, it's a different picture. We had a 10.8% decrease in revenue. Also, this was expected. This is not a surprise to us. At EUR 532 million of revenue, it's very difficult for us to make money. The weak revenue is driven primarily from weak earnings in the Sheetfed segment because of the dip in order intake we saw last year, as well as the Banknote segment that had a strong order intake in December last year, but those orders are just now ramping up and will bring us sales and earnings in the second half of the year, but did not help us in the first half of this year. Overall, on the revenue side, clearly the biggest headwind, and you can see on the next page how that directly relates to a drop in earnings. Driven entirely by the drop in revenue of over EUR 60 million, we are predominantly fighting a volume and mix effect that dropped earnings year-on-year by around EUR 18.5 million. This is the two effects. We have volume issues, as you saw on the previous page, mix means, of course, in difficult environments, we're selling more of our lower-end products and less of our higher-end products. We're also, of course, margins under difficult times are certainly under pressure. That's something you also see in this EUR 18.5 million figure. On top of this, we also had the extraordinary impact of roughly EUR 10 million, driven primarily by, of course, our drupa Trade Fair, which we had also announced in the past and is not unexpected. Overall, if you think about what we have been telling the capital markets for the last three to six months, we were expecting a very weak first half of the year. We were expecting the second quarter to be weaker than the first quarter. We were obviously expecting the roughly EUR 10 million of extraordinary costs. This is exactly what happened. It doesn't make the figures better, just that we were expecting them. Overall, of course, at six months, a minus EUR 33.7 million EBIT is a dip that we now have to overcome in the second half of the year to meet our operating guidance, which we're of course convinced we're on path to do. If we move on to the next page 12, you see some more details on the income statement. As already mentioned, sales are down, and that directly relates to lower gross profit. I think some good news on this slide is simply that our cost control on the functional costs, R&D, sales expenses, administrative expenses, it's clearly working here. Under distribution, you see a large portion of the drupa expenses. We've been able to otherwise compensate with strict cost control and see a year-on-year decrease that helps us to mitigate some of the volume loss. Overall, at minus EUR 33.9 million bottom line EBIT, of which EUR 23.9 million minus is operating EBIT, of course, a very difficult first half of the year. On top of that, of course, debt has risen and interest rates have risen over the course of the last 12 months. We also have an increase in interest expenses. Therefore, of course, our net loss at the end of the six months is disappointing, but in line with what we expected it to be. On the next page 13, some other highlights on the key financial KPIs. I wouldn't try to push this as great news, but I think it's a good sign that we have significantly decreased negative cash flow. This time last year, we had minus EUR 46 million of negative free cash flow. It's only, of course, it's still losses, but at minus EUR 27.7 million in free cash flow, we're making significant headway in improving our cash generation, even if it's, of course, not where it needs to be. The good news on the bottom left, this is where a lot of our effort is concentrated on, is that we were successful in reducing net working capital over the last six months. Certainly at this roughly EUR 16 million, nowhere near in line with where we need to be going forward. We are aggressively working on reducing working capital further. At least we see in the first six months a step in the right direction. If you look at our year-on-year figures compared to Q1, Q2, Q3 last year, we're clearly making progress in net working capital. Of course, our net financial position, because of the negative free cash flow, slightly down equity ratio because of the negative net losses, of course, also under pressure. The group cash flow is, I think you see again the EUR 27.7 million from the previous slide. What is driving this negative cash flow? At the end of the day, it's primarily our losses. The gross cash flow coming from operations. On top of that, under investing activities, you see a slight increase. This is mainly driven by our demo machines for the drupa, that are year booked under work in progress or under ongoing involved, that increase our investing activities. Those machines will be sold to customers, it will ultimately result in cash in, but that's driving this EUR 27.1 million negative cash flow from investing activity. Working capital, as mentioned, had a positive contribution. Otherwise, the non-cash transactions are roughly neutral. If we move on to the balance sheet, I think there's nothing spectacular to really mention on this slide. The only things I would point out is at the bottom right, under other liabilities, you see an increase from EUR 273 million to EUR 330 million. This is due to increase in customer down payments. We do see the uptick in orders, also on our balance sheet, which is good news. The task is now to turn that into sales revenue and earnings. Otherwise, there were no significant movements in our balance sheet positions other than the working capital positions I already mentioned. Moving on to page 16, looking at the three segments. This slide always takes a little bit longer to present, but gives a good picture at the various business areas that Koenig & Bauer is operating in. On the Sheetfed side, we see obviously a fourth quarter in a row with a positive trend on order intake, from the deep of EUR 112 million in Q3 2023. These are the blue columns in the top chart. From our low of EUR 112 million, we now pushed up to EUR 179 million of order intake in Q2. At that point, I would mention also that, of course, the drupa orders, only a portion of those are in Q2. Many of those, around one-third of them, are in Q2. The large majority of the drupa orders will not be booked as order intake until Q3, perhaps even Q4, because we have a clear rule that we do not show order intake in Sheetfed until down payments are received, which sometimes waits on subsidies or other topics. Sheetfed is clearly on the right track, also with momentum coming from drupa, that orders are recovering, order backlog is recovering, and clearly we're on a good trend in that segment to return to revenue levels that we had seen prior to 2023. Despite that, in Q2 and in the first half of the year, Sheetfed was very weak at EUR 290 million of revenue. It was 18% below prior year. This is again, something that was expected and that we had hopefully prepared you well for. Of the dip in orders in Q3 last year, and partly Q4 last year, this is really what's hitting our revenue now in Q2. The order backlog is now there. We will see a recovery in Sheetfed in the second half of the year. In the actual figures, per June 30th, of course, a very weak first half of the year. On the far right in Special, you see the strong uptick in order backlog and order intake that we've seen since this time last year. We had strong orders. Turn into revenue until second half of this year, or even into 2025 and 2026. That's the nature of some of the businesses in that segment. The strong orders from December don't hit until the second half of the year, we were only able to generate lower revenue in the first half of the year, despite the strong order backlog. Here, also EUR 180 million in revenue, down 7.5% year on year. Also here, based on business unit mix as well, a significant drop in earnings in the Special segment. Again, to repeat, here also, we see a strong recovery to come in the second half of the year, driven by the order backlog and a much stronger second half. That brings me to the middle segment, Digital & Webfed. Here it's a similar picture to what we've seen in past quarters, that we had a weak order intake in Q2, at roughly EUR 29 million. Certainly nowhere near in line where we want it to be steady state going forward. There are some positive signs moving into Q3, but I will leave that to Dr. Andreas Pleßke to explain later. Overall, it is slightly up year-over-year due to the order backlog we had this time last year that is now being executed. Earnings are, of course, not where they need to be, and I think this again underlines the necessity to accelerate our Spotlight program and work on structural costs in Digital & Webfed, which is well underway. Wrapping up on page 17. I think you saw this in our ad hoc messages and Dr. Andreas Pleßke already mentioned earlier. Despite the extraordinary expenses driven by drupa and despite the high one-off costs for Project Spotlight, around EUR 30 million-EUR 45 million, we still confirm our operating earnings by year-end should reach the lower end of our forecasted range of between EUR 25 million and EUR 40 million. And that we will achieve our revenue target of around EUR 1.3 billion, despite the very difficult first half of the year and the very difficult market situation we continue to be in. This is obviously implying a very strong second half of the year. As mentioned, we saw already the first positive signals in June, in the last month of Q2, that we are on the right track, and we have to keep this momentum going forward through year-end, and keep pushing. Bottom line, of course, including drupa and including the costs for Spotlight, we are looking at, obviously, a negative bottom line for the group in 2024. But completely out of the necessity to restructure the business going forward and reach our midterm goal, which we are absolutely committed to, of achieving that 6% EBIT no later than 2026. And we are convinced that we have the measures now defined and ready to execute to reach that goal. That is it from my side, and I would hand back over to the operator for starting Q&A. Operator, could you please take over? Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and then two. Questioners on the phone are requested to use only handsets and eventually turn off the volume from the webcast. The first question we have is from Jorge Gonzalez of Hauck Aufhäuser Investment Banking. Please go ahead. Hello, thank you for taking my questions. The first one is on regards the order intake. Looking into the detail by division, I see that Sheetfed order intake was quite similar to Q1. You mentioned, Stephen, that some of the orders were not booked. I'm not sure if you were referring to these EUR 50 million additional to the 200 that were not completely signed or that were missing some parts or some documents or something. Could you clarify what is the order intake, including all Drupa signed contracts for the quarter in Sheetfed? If there is any change in trend for Sheetfed that you are foreseeing, or if you still see a positive dynamics for the rest of the year in this division? That would be my first question, please. Stephen, please jump in. I tried to answer that. The first question was the order intake, which we announced, which was EUR 200 million in legally binding orders. As Stephen said, in the second quarter, we have booked as order intake in our figures roughly one third of that. That is due to the fact that these orders include, to a large extent, the Sheetfed orders themselves, they have a certain rule. We only book them once the down payment has been received by us. About one third of the part of the orders, which were the Sheetfed orders out of the 200, one third has been booked in Q2. The rest will most likely be booked in Q3. We have also announced that there is another EUR 50 million. We said between EUR 200 million-EUR 250 million, another EUR 50 million order, which we would say was a letter of intent or a firm handshake. These orders we expect to be partly in Q3 or in Q4, or however it is with a firm handshake. If somebody doesn't remember that he has given a handshake, it's just not legally binding. Of the legally binding orders, the Sheetfed part of that one third was probably booked. Roughly two thirds will be booked mostly in the second quarter, which would we expect. Again, these EUR 200 million included orders from all divisions because all divisions were present at the Drupa. Thank you. Very clear, Dr. Pleßke. We can say that the trend in Sheetfed is still quite good. Is this fair to say? I think it is fair. Yes. Yes, no? As a matter of fact, it took me five seconds to breathe before I gave you the answer. Is that you and I read papers, and you and I talk to customers. If you read papers and talk to customers and look at the likelihood that people release investments in highly expensive equipment these days is not at an all-time high. Can I read the world? I can read our customers. I can read the newspapers. I have an opinion. Based on the customer discussions that we have, after five seconds of breathing, I would still say yes. I don't see a falling off the cliff. I see that we will continue to get a satisfactory order intake. I would not expect that a sudden surge of order intake makes all of our problems go away. The problems go away only if we do our own measures. I understand. Regarding Special, the order intake in Special in the quarter was really strong. I was wondering if this division enjoy part of the drupa success or if this is unrelated. Also, if these orders are going to have an immediate effect on the revenue of a Special solution in the next quarter or in Q4. Before I hand over to Stephen on that, we have several businesses in Special, and we only announced the segment. It's not easy, but a lot of the businesses in Special, the machines take a long time until it runs through the factory. If we have an order intake, and these machines may be designed specially for the customer, it takes several months until we have the engineering through, until we order parts. The ramp up until such an order becomes either PO-able or if it isn't PO-ed, it becomes turnover, delivery is relatively. The time between order intake and when we see EBIT is relatively long. Stephen, if you want to- No, that's a perfect answer. It depends, of course, on the business and on the order, and how much inventory we may have on hand, how much engineering work we have to do on the order before we start to generate value in the factories. It really does depend. In general, it's typically not day one after the order intake that it starts generating order revenue and EBIT, it takes some delay. Of course, the order intake in Q2 that we saw in Special will help us in the second half of the year. For sure, it will have an impact, in Q3, Q4. The order intake is mixed. We typically make the mistake often in these calls to equivocate Special as Banknote. It's not just Banknote. We also announced a strong MetalPrint order during the drupa, for our first ever high-end top-line MetalPrint machine being sold to India. These are all examples, order intake that was in and around the drupa, and it certainly is going to help us in the second half of this year. More importantly, will help us in 2025 and 2026. Yeah. Your question, is this all drupa-related? As I said before, nobody comes to drupa, sees our machines, start singing and dancing and praising us and says, "Could I please have one quickly?" drupa is a bit of a culmination point of new developments, and we had new developments in every single division and every single segment of the whole group. Very useful. The whole group was geared towards a promotion of ideas which culminated in drupa. Thank you. Two quick ones, I go back to the line. One, if you can give us a little bit, how you have split drupa between the divisions to have a better idea of the underlying margins. Last one, regarding Spotlight. Offer the scope for the Spotlight and looks quite ambitious. I was wondering if you can already give us how you expect this to impact the margins by division or more clear roadmap of how this is going to improve margins, or when do you plan to do this? If you are maybe offering a Capital Markets Day or any more detailed presentation on how Spotlight is going to be translated into better margins for Special and for Digital. Thank you. Sure. The first question was easy. I mean, drupa is roughly allocated to the segments based on revenue. Not exactly, because some of them were underrepresented, but, as Dr. Pleßke mentioned, all of them were represented, so it is spread evenly, or it is spread across the three segments, roughly in line with their revenue splits in the group. I think that is a safe assumption if you use that for your simulations. The second question. We are not, certainly not today, going to give any more details on how Spotlight will affect the segments. Particularly on the savings side and the earnings side. The main message today is that it is our program or our approach to securing the 6% EBIT target that we have communicated. We have those figures internally, we're certainly not ready to communicate them, nor would it be appropriate to communicate them to the capital markets on how they will hit the various business segments. You can see from the slide three or slide four today, the three main areas of Spotlight, that is the Digital and Web 2.0, the BNSx program, and the holding project. I would say that if you think of it this way, the BNSx project and other projects are predominantly outside of Germany. Predominantly, not exclusively. The Digital and Web 2.0 and the holding project is focused more on our location in Würzburg. Everybody on the call understands that personnel reductions in Germany are expensive, and therefore the one-off costs will predominantly be geared towards our German locations and those two big areas of Digital and Web 2.0 and holding. Holding again, will of course be allocated to the segments based on roughly in line with revenue. Not exactly, but roughly in line with revenue. It was a long answer, but I hope that gives you a I know you're trying to figure out how to simulate it in your model. That gives you a rough idea. What we're not going to communicate anytime soon is how the segment-specific P&Ls will develop over time. That's something that we'll consider at the next Capital Markets Day, don't get your hopes up too high. But- I want to add, not contradict Stephen, I want to say, I've said that before, obviously it is a goal, I'm not giving it time. It is a goal, the time cannot be too long that in Digital & Webfed, we stop making losses. Okay. This- That's clearly part of Digital & Webfed 2.0, but the details we'll announce at a date which, I think we'll have some venue where we do that, maybe a Capital Markets Day. Perfect. Thank you very much. I go back to the line. Thank you. The next question we have is from Stefan Augustin of Warburg Research. Please go ahead. Yes. Hello, gentlemen. Thank you. The first one is, I have some housekeepings before we go a bit more into discussion. Again, on the drupa cost division, it would not be unfeasible to think something like EUR 7 million for Sheetfed, EUR 4 and 4 million for Digital & Webfed, and roughly EUR 2 million for Special. That would be my first assumption out of your answer. The second one is a little bit the conclusion on the EUR 200 million orders from drupa and the EUR 50 million, and a little bit the split where the order intake appears now, in the segments. Here I also have a question on a comment, that is in the report, which says that, one larger Special order is going back into the negotiation program. That seems to be like a mid-double digit EUR million. Is it fair to simply assume that the EUR 190 million we see in Special right now will be effectively somehow reversed the next quarter? It's something like, EUR 130 million, EUR 140 million, EUR 150 million left over there. Is, let's say, this massive Special order intake somehow included in this EUR 200 million number that you presented as the result of the drupa trade fair? So- This is the first part. Okay. First of all, your assumptions for how drupa costs are split are roughly okay. That's a reasonable assumption. I think anything else is immaterial, that's roughly okay. The second question, we put that note in our half-year report simply because we felt that it was necessary, that it was material to mention. That order is not lost. By no means is it lost. It's simply, we have a legally binding contract for this order, that justifies having it in. Not justifies it, we're obligated also to have it in order entry on June 30th. It's appropriate. It's absolutely correct and mandatory for us to show it as order intake per June 30th. As of today, it is a legally binding contract that we have signed, we know from our customer that it's going into an unplanned additional negotiation phase, that we hope will be solved by the end of the year. We still expect the award to be given, awarded in our favor. Whether or not we show it in our Q3 or Q4 order backlog, frankly, we'll decide at the time we have to publish, what is the actual situation and do the appropriate thing. The only thing I can promise you is that we'll make it transparent. Is it in or out? It's in, as you mentioned, it's in the EUR 187. It's in. That's correct. Again, it's just our feeling of what is right and transparent and what is our obligation to capital markets to mention that the order is in a kind of situation that was worth mentioning. Again, it's not lost, and please don't understand it as being lost. Was it in the EUR 250 million? Yes. Just also another quick question. If it goes back to you, I assume there has been a prepayment, does that prepayment then temporarily flow out again? No. The prepayment is not an obligation. In all of our segments, particularly in certain kinds of customers, it's often impossible to get prepayments at contract signing. There's no cash risk for us as a company. Exactly opposite. Which we don't expect, even were to lose the contract, there would be reimbursements on our side. There's no risk. Frankly, it's just our diligence, and the expectation on ourselves to be transparent in our reporting to show that it is what it is. Again, no risk financially. It's simply a risk in the order backlog. Is it lower than we show or not? As mentioned, we're confident that it will become an order, just at a later date. It's only Q in the Texas year. Again, sorry, perhaps one other comment. It has no material effect on our guidance for this year. It's irrelevant for 2024 or immaterial for 2024. Okay, understand. Thanks for the transparency. That brings me to the second part here. If I look into the Digital & Webfed, I recall that when we went back in November, we were discussing that there is a learning curve in working off the order backlog in Digital & Webfed, that there will be an improvement in the, let's say, orders work off as the learning curve finally comes out. Even if I subtract now, let's say, EUR 1 million Drupa cost in the Digital & Webfed, it seems to be simply getting rather worse than better. Which brings me to the second part of my strategic question. If I look into Spotlight, I compare it to P24X, I don't, at this point, really see a difference between the two. The P24X savings simply have gone. They have not really materialized in the overall group result. I had expected, actually, for Spotlight rather, that there is something like, we look at Drupa, we finally make our call, maybe we abandon one or the other line of development, simply think it's unfeasible to market it right now. I cannot read anything that you, let's say, or I don't know where to expect that you have cut your product range or reduced the optionalities or whatsoever. The question is actually, what will be the magic of turning around Digital & Webfed? Simply reducing a bit of workforce is probably not going to make the move here. I hope I got this all. In case I overlooked something, would you ask Mr. Augustin if he would please later on repeat the question. Let's start with why is Digital & Webfed in the first half-year very weak? It is. I think I didn't read back what I said last time, but I hope I mentioned it the same way. There is still the ongoing problems that we have to resolve. We are more or less now through resolving them. There is still one machine out there where we are fighting for a final acceptance, and I think I talked about seven or eight machines. I don't know if I said that in detail, but that was about the size of it, which we had to get market ready. That was the big task of the first half of the year. We are more or less getting through that. If you look at what I said, there is a bit of a light on the horizon in the last month of the first quarter that also applies on Digital & Webfed. I can also see there a bit of a, let's say, the first signals of a turnaround. If it comes to product ranges, there are many things which we announce and don't announce. We are also in the market and we have competitions. Therefore, we have not said that we get out of any market altogether, but we very much, I would say, focus on the inkjet part of the business and we focus on a very, very clear, defined, serious production range of standard Flexo machines. That's what I would say is the focus. Inkjet includes HP and RotaJET because it is a nice margin business and it is future business. It is specialized in some cases, especially in the RotaJET. On Flexo, we clearly look at a certain segment of that which we would call the highly standardized machine, which is particularly useful for the corrugated production, because that is our home turf. We do not officially pull back out of anything else for various reasons, but let's look at what we focus on, and that's, I think, what we focus on. The rest is out of focus. What we do with Digital & Webfed is we look at the shoe size of the whole company. We look at how much order intake can we generate realistically in the next year with all those things that we focus on, and everything else is then cream on the coffee. Whatever we focus on, that'll determine the size of the shoe. That is the basis of the restructuring. It's right-sizing based on two focus areas, which I just mentioned. Okay. I think I get your answer on that one. Well, finally, probably, let's say the scope of the cost between, let's say initial P24X and now Spotlight are not so different. I assume it is fair to have in the back of our minds roughly same kind of effects. I think it's difficult to compare the programs. Spotlight is something completely different than P24X, in my mind. P24X was an answer to COVID and a group-wide, no stone left unturned, classical cost-cutting measure that hit everything. Spotlight is Spotlight. It's focused on certain problems in the company to fix them or certain areas of the company where we say we have to earn more money. I would add to Andreas Pleßke's comment, one other thing. It's not just about the current portfolio, what we also have to understand under group-wide projects, one of the great things about Koenig & Bauer is that we have a lot of ideas. One of the greatest ones is this Volkswagen project that came up the last couple of years. We have other great ideas in the pipeline that we could have decided to start an engineering project on or start new initiatives on. There are several examples that we're not going to mention details on this call, where we simply told the organization, "No. We're not starting the next product, the next project, the next business area, until the current ones start being harvested." It's not just about stopping what you're doing, it's also about not starting new things. As Andreas mentioned, we're also stopping and consolidating certain product lines and variations and versions and trying to make current businesses less complicated. At the end of the day, it's about focus, and that's the main message. We think our product portfolio is still the right one. We're addressing the right markets, we're addressing packaging, we're addressing fundamentally good areas with our current portfolio. That current portfolio can be done better and more efficiently with less complexity. We're not looking to give up complete business areas. We are certainly saying we're not starting the next business area. Again, it's a little different take on what Andreas just mentioned. The savings, the Spotlight, we'll talk more about that in the future, but P24X was a EUR 56 million announcement when we announced it. I think a EUR 54 million, EUR 56 million. Now we talk about EUR 30 million to EUR 45 million, and it's a different kind of project. It's more of a restructuring as opposed to an excellence program. Please don't make that direct comparison. We'll try to follow up with more details for everybody in future calls. I think we're almost out of time, but we'd love to take one more question from Peter Rothenager, who's in the line. If you don't mind, Mr. Augustin, we would move on. We only have time, I think, for one more question. Apologies. Yes. Hello. Do you hear me? Yes. Yes, we do. You may go ahead. Thank you. Okay. Thank you. One question on the Special results. In previous quarters, with that number of sales, you were mostly able to achieve balanced or only slightly negative results. What is different this time to have such a big loss of EUR 7.5 million apart from the drupa cost, which might be EUR one or two million? I'd say it's predominantly just mix. At low number of machine production in some of the business areas. Some of it's mix. Again, it's not just Banknote. We have other businesses in the area, and at the end of the day, it's low machine sales and a different mix on gross margin. It's always entirely from gross margin. Okay. It's just a perfect storm. Regarding Digital & Webfed, perhaps one word regarding corrugated. You did not mention this. Has anything changed here? The environment still so difficult and do you see here the necessity to adjust anything? The corrugated market in investment perspective is one of the weakest markets that we presently see. You see that predominantly that is the business which is these days run by Celmacch, which is not yet consolidated and where we have a minority share. It presently is in this market environment, one of the weakest. Driven by the, I think you know as well, the mega mergers we had by the major customers. Overall, corrugated market, corrugated producers are producing less. It's still a positive business, and Celmacch is still a great investment. Certainly, I would agree with Andreas' comments. Of all of our markets we address, it's the weakest at the moment. In the midterm or even in, hopefully, in 2025 or second half of this year, we certainly expect it to recover, but it's where we're fighting the most. In the world of Digital and Web, where we only make very small part of that, it is what I would consider the cream on the coffee. If it comes, we like to have it, but it's not largely built in because the majority is in Italy, in Celmacch. Okay. Thank you. Okay. I do see we have, even if it's already one minute past, we do have one more question in the queue. Apologize for running over, I think just out of politeness, we would take this additional question from Johannes Rees from Apus Capital. If you would operate, if you would let him in, that'd be great. Thank you, Johannes. Your line is live. You may go ahead. Thanks for letting me in. Thanks a lot. Only two questions. First, your targeting with your Spotlight program. A short moment. I just have to open the door to take in the cigarette. We can't hear you. Oh, it looks like we lost you, Mr. Rees. Operator, can you still hear us? Yes, we can, sir. Operator? Okay. Well, it's not on our line. That's not on our end. We can't hear Mr.- Sorry. I'm back again. Sorry. Okay. Your plan is to achieve at least Spotlight in year 2026, 6% margin, based on EUR 1.5 billion of sales. Does this EUR 1.5 billion of sales first include Celmacch? Maybe such as perhaps the majority? Is it only organic growth without Celmacch? What if maybe most analysts are expecting EUR sales are lower, how much maybe this could affect again, the bottom line? Will you be able with Spotlight, maybe with a little bit more severe cost measures, or even to achieve higher margins without maybe growing as you have planned with the EUR 1.5 billion? Yeah, I think that's a great question, Mr. Rees. First of all, Celmacch will not be consolidated before 2027. That's not included in 2026. I think it's probably the most important message we can give you. The 6% at EUR 1.5 billion is our target. If we achieve less sales, we will stick to our 6%. If we only have EUR 1.4 billion or EUR 1.45 billion or EUR 1.47 billion, our target internally is 6%, even in 2026. We see the path to the EUR 1.5 billion turnover. Of course, that depends heavily, when does the market come back? Does it come back the way we hope? It's a very important message to everybody on the call. We are not waiting on the top line to achieve profitability. We are focusing on bottom line, and we will not stop on measures until we achieve the 6%. Great. Super. Second question on the Volkswagen project. Any change to the timetable? Originally, your forecast, it was set that to the end of the year, there will be a decision by Volkswagen or your partners there, to go or not to go. Now it seems maybe a first step in the right direction, but has anything changed on the timetable, even with the news we heard today? No. Okay. Short answer. Yeah. Still maybe a decision at the end of this year. At the end of the year, I think we announced that we have the clarity if our machines that we have developed can bring the production data that Volkswagen likes to see. What Volkswagen does with that result and when and if they do whatever order with us, will happen according to, well, Volkswagen's timetable. What we said is, at the end of this year, we As to if our development, let's put it as safe, works in a production environment. Yeah. That timetable hasn't changed. A matter of fact that they ordered the machine is definitely not a negative sign. Yeah. More to show signs that you're going to test it in a production environment. Yeah. You could interpret that. Okay. Thanks a lot, and thanks for letting me know. I have to look for the guys who bring the furniture. Thanks for that. Thank you. Thanks. Bye. Yeah. I think we're through with the questions then. Thanks to you for the vivid discussion. We'll hopefully have another vivid discussion in, when will it be? In mid of October or end of October? Early November. Early November. Hopefully, we can confirm what we have announced today. We're working hard on it. To all of you who haven't have good holidays, to those of you who are in the middle of it, continue. We haven't had it yet. Thank you. Thank you very much. Bye-bye. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines.