Hello, ladies and gentlemen, welcome to the Stabilus SE conference call regarding financial results in first quarter of fiscal year 2023. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to your host, Dr. Michael Büchsner. Thank you very much. Hello, welcome also from my side here to our Q1 earnings call. With me here in this call, you have Stefan Bauerreis, our CFO, and also Andreas Schröder, investor relations. We start with the operational highlights before we go into the financial details. In terms of the highlight page, you see we're constantly growing our organic revenue growth this time around year-over-year in the first quarter is 14%. We particularly had very good growth here in our businesses in Americas and APAC, 23% and 18% by region, which is an extraordinary good growth again, quarter-by-quarter, year-over-year, considering the market circumstances. The organic growth rate of 32% in the automotive POWERISE in the first quarter was, again, outstanding for us in this basically driving our growth, particularly in the Asian region. They will talk in a bit about the financials in detail. I'd like to draw your attention also on the left side of this page, talking a bit about another or different operational highlights, which we have been focusing on for the past months and years. We also continue our path of high focus in terms of ESG. In the past months, we've been focusing in renewable and green energy. In some of our plants, we switched to renewable energy sources. In others, we have been investing in installing solar systems. You see here on the example on the left-hand side on this page, a plant in Pinghu, our new POWERISE plant, where we generate the significant and maturity of share of energy now by renewable energy means by solar panels. Another example is our headquarter building in Koblenz, but also in other locations all over the world, we invest a lot to be upfront leading also in terms of renewable and alternative energies, and thereby contribute to our overall ESG strategy. We are talking about the financials in an overview. You find them on the next page. In terms of the revenue, we ended up with EUR 290.7 million. There was a year-over-year growth of 19.3%. There is a certain currency translation effect of 5.4% included. However, the organic growth, again, as I said, outstanding with almost 14%, so 13.9% year-over-year growth. As I said before, mainly driven by our POWERISE systems, but also the other industries, and thereby focusing on Americas and particularly Asian Pacific in terms of this growth. EBIT performance. We've been achieving a growth in EBIT of 11.3%. In absolute terms, EUR 32.36 million. Our margin is 11.3%, and our profit is EUR 15.5 million versus EUR 18.0 million in the comparable quarter last year. The profit margin is at 5.3%. Also an outstanding cash performance, EUR 32.7 million, which is 3x more than in the comparable quarter the year before, where we had EUR 7.4 million. Actually, this leaves us with a net leverage ratio, which also improved to 0.3x. Just to keep in mind, we had end of the financial year, 2022, 0.4x. Here also an improvement. Net financial depth is EUR 63.5 million. Our forecast for the year is unchanged with a revenue of EUR 1.1 billion up to EUR 1.2 billion, so a range of revenue. Also the EBIT margin guidance is unchanged in an area between 13% and 14%. This has been the overview in terms of operational highlights and also the financial highlights. With that, I would hand over to our CFO, Stefan Bauerreis, for some details. Thank you very much, Michael. I'm happy also to present you some more details about our key financial figures, starting once again with the revenue. Michael already said that overall, we got a growth rate of 19.3% overall in growth of our sales from EUR 243 up to EUR 290.7 million. As you know that we are mainly organized by regions, therefore, the region APAC, Americas, and EMEA are the three relevant regions for us. There we have to say that in last year, still, we had the region EMEA as the biggest region in terms of our sales with 43.3%, and 31% in Americas and 25% share of APAC. This now in the first quarter this year, due to a very interesting and a very fantastic growth, especially in the region Americas, but also the continuous growth in APAC changed a little bit. That will mean that now we are more on a equal level between the three regions, having 34.9% in APAC with EUR 72.3 million revenue. Americas is EUR 109.2 million with EUR 37.6 million, and EMEA also with EUR 109 million. What we can see here is that EMEA is with all the geopolitical environment where we are, all of us know that this is the most difficult region currently. Nevertheless, we managed here also to maintain a growth of 3.6% overall compared to the first quarter last year. Obviously, the biggest driver in terms of sales currently is in the first quarter Americas, where we had a quite strong or a very strong first quarter this year, which was not the same case as last year. APAC as well, despite all the factors that we know there in the first quarter, still with a growth rate of 18.3% with +EUR 11.2 million in terms of revenue. What does that mean, talking about the EBIT numbers? The EBIT numbers, this time went from 12.0% adjusted EBIT margin to 11.2%. This is mainly driven by higher material and also energy costs. You have to know that the first quarter last year, that was the last quarter pre-Ukraine war, and now we are completely in and have significantly higher energy costs, where obviously also the compensation and the discussion and negotiation with our customers will be more backloaded, and therefore, we are suffering a little bit on that perspective on the material expenses. Nevertheless, with 11.2% EBIT margin, we have now an significant growth in Americas, from EUR 5.5 million up to EUR 12 million, which is more than doubling our operating results. This is impacted on the one side due to very good results this year, but also special impact mainly in terms of healthcare last year. APAC growing with 19.4%, at that perspective, all in line. The only region currently suffering in terms of EBIT currently is Europe, with a decline by EUR 5 million. Talking about the profit for a second. The profit decreased, so reduced in that view, quite heavily. Why is that the case? This is on the one, the main issue there is mainly also some valuation topics where we had mark-to-market valuation, which alone for that results in a reduction of EUR 8 million. This is just an adaption on the fair market value on foreign exchange position. Adjusted free cash flow, Michael already said it's a very positive development of the free cash flow. I even would like to add over the last, I would say at least 10 years, it's the best first quarter cash flow, free cash flow that we were able to achieve. Once again, knowing that after the end of our fiscal year on, end of September last year, we will have in February, the dividend distribution to our shareholders. That is already a good step to continue our path in being a very strong cash flow-generating entity. When we go a little bit more in detail in the different regions, starting with EMEA, I already said that the revenue increased by 3.5%. Having that in mind that the light vehicle production increased in brackets just 1.55%. Overall, we were able to overachieve this growth rate. Having a deeper look in the different details, we have to say that the automotive gas spring revenue just increased by 0.8%, but POWERISE obviously with a very strong growth rate with 21.7%, mainly on an organic level, obviously in Europe. This is supported by high production units for BMW, for Ford, for Puma, for Geely, Hyundai, Kia Sportage, but also Tesla and Volkswagen Group. A very broad range of different customer contributing to that very good development. Industry revenue, they are down by EUR 1.4 million or 2.4% year-over-year. There mainly is this is mainly a result of also some changes and some issues in the area of health, recreation, and furniture. You have to know that last year was in Corona. We had, in that perspective, a kind of special activities that everybody build out their home offices. Also getting mainly on the furniture side, also some customer with supply chain issues, not for our supply chain issues, but on the level of our customers. Therefore, we have a slight decrease in that area. At the end of the day, it's also not the area where we see our main strategic growth anyhow. The adjusted EBIT margin decreased to 4.8% in the Q1 of this fiscal year. Having that in mind that we are in a very difficult economic environment with also significant increase of costs, and not only in terms of, gas and fuel, also with some activities in material, but also starting step by step, also getting the increases on the labor side. I just want to remember that in Germany, the tariffs will increase or will be increased for this year to about more than 5% year-over-year. Also there we are already posting some accruals for that, starting also this first quarter. Going to the next region, Americas, which is that in that quarter, our star, I wanna say, in terms of revenue growth of 41.5%, which is on the one side covered also by the macroeconomic environment, the light vehicle production, which went up by 7.2%. Nevertheless, our American revenue went up by EUR 32 million or 41.5%, even when we take out the currency translation effect of 18.3%. Nevertheless, an organic growth of 23.2% is really much outstanding, and it's a very good achievement of the region Americas. Automotive gas springs revenue was up to by 4.7%, and the automotive POWERISE revenue obviously outperforming all markets with 29.9%, and therefore have a significant growth. Here, a different range of customer projects for Ford, for GM, Hyundai, Kia, Stellantis, Jeep. You also can see that this is not only a one-time issue with one customer, but this is really much taking profit from this development that the end consumer wants to get more POWERISE system in their car. Going to the industrial revenue, there we increased the revenues by EUR 12.6 million or 47%, which is on an organic level still a growth rate of 31.8%. This mainly is the result of very strong growth in mainly all the industrial market segment, but in particularly for energy, for construction, for industrial machinery and automation. The adjusted EBIT margin really much recovered now coming from 7.1% up to 11% in Q1, which is really much supported by strong revenue growth in all the different business unit and also a stringent cost management. In particular, the first quarter of the last year also was impacted by higher labor cost inflation and also higher costs for healthcare in US. Going last but not least to our third region, APAC. Here also we we were able to get a significant growth of 18.3% overall in our revenues. Also here, the major growth contributor is the POWERISE system, where we have a 42.2% increase in our sales year-over-year comparison. Here, when you see on the right side the different customer, these are not only the European one or the US one, like the Teslas, but also really much we are deep in good business with Geely, Hyundai, with Niro, with SAIC. All these, this kind also of Chinese and Asian customer contributing more and more to that good development. Overall, the adjusted EBIT margin increased from 21.1% to 21.3%. Higher costs that are also occurring there, not so much for obviously for energy, because that is mainly a European European issue. Nevertheless, we were able to increase on a good development our EBIT margin to 21.3%. The industrial revenue, I said that already, is the only one which is currently down as a result of the softer business, mainly with our distributors. They depend on aftermarket and also e-commerce there. The adjusted EBIT margin, as I said, with 21.3%. Finally, when we're talking about the business at the industry, automotive POWERISE and automotive gas springs, we can say that the global light vehicle production in the first quarter is with EUR 21.5 million and therefore 1.7% higher than the Q1 of the last fiscal year. We at Stabilus, with our organic growth of 2.7% in the automotive gas springs, and obviously with the 31.9% in the automotive POWERISE, we're significantly able to overachieve and to outperform this light vehicle production on a global level. I think that is, in that context, a very important milestone that we also have to mention here. The industrial revenue overall is up by EUR 10.3 million, which is a growth rate of 11.4%. Taking out the FX effect, we still remain with the 8.1% growth rate, and this is also well above the growth rate of the global economy and also follows our way to outperform these major KPIs in terms of our sales goal. Having this said, for more details, I hand back to you, Michael, for the industrial revenue by market segments. Yeah, thank you very much, Stefan. I would like to go in detail with revenue by market segment. On the next page, you find our pie chart as we show it each and every quarter. The overarching topic is that we had a very, very strong industrial quarter with more than EUR 100 million sales on the first business quarter, financial year 2023. Actually, one of the strongest quarters we've been seeing in the industrial area, with a growth rate of 11.4% year-over-year, so EUR 10.3 million more than in the comparable quarter of last financial year. Where is this coming from? As we already said in previous meetings and also on one-on-one discussion, our big priority is to be strong with energy, industrial machinery, and automation sector. This is what now materializes. We've been working on that strategy quite some time, and we are kind of working on this strategy also going forward because we as Stabilus are pretty much technology-driven. Our strength is on a global scale, to be very close to the customer and also design in several features in terms of higher sophistication technology level, because we are a company who is driving technology or technology-driven every day. This is what you see with this growth in terms of energy, industrial machine, and automation. This path will continue because we certainly want to invest our resources where it really matters to our company and where actually we see the most benefit for our shareholders or the most benefit in terms of profitability as we speak. This is why the share of energy construction, industrial machine and automation did grow from 17% to 23%. It's now almost a quarter of our sales, and here in a perfect term, our future lies in Stabilus Group. In the same way, we also further expand in terms of independent aftermarket. We also have been talking about it several times. The independent aftermarket area is a growth field for us as well, because whenever the automotive industry, for example, is having its soft phase, then people decide to maintain their cars, and the independent aftermarket e-commerce channels are thereby a preferred source of supply, which makes us strong as a Stabilus company. Then for sure, the mobility sector. The mobility sector is at 28%, and this is predominantly driven by the bus sector coming back to a certain share, also by the air mobility, so the airplane business coming back as people started after the corona pandemics on a global scale to travel again. This sector will grow also in the close future for us. In terms of overall growth, 11.4%. Industrial revenue is here predominantly growing for us, and that's a very good story also in the light of our profitability going forward. In terms of the outlook, I switch here by to the outlook page on page number 16, we stick to our outlook guidance for the year. Our guidance in terms of revenue is EUR 1.1 billion-EUR 1.2 billion, and the EBIT margin in a range of 13%-14%. This is based on a year-over-year growth of 3% on the light vehicle market. Actually, 83.7 million vehicles produced is the basis for our planning versus 81.6 million vehicles sold in the previous year. At the end of the day, we continue to guide in a bandwidth because for sure there is seeing into the macroeconomic and geopolitical situation, some uncertainty out there, and this uncertainty is basically reflected in our guidance bandwidth, especially the post-COVID lockdown situation in China has a certain stake and share in this guidance range. We also expect that, or in terms of earnings, the financial year 2023, again, back-end-loaded like last year, because as we've been discussing several times, the inflation, particularly the inflation we've been seeing in the past months in terms of materials and energy, are pretty much now in discussions with the customers. With some customers, we found already agreement, with others, we are in the process to. That's why you will see the earnings in the year, financial year 2023, similar to the financial year 2022, back-end-loaded in our plan. We stick to our strategic pyramid for sure. Our long-term strategy is on with a sustainable growth path and high focus on customers and employee satisfaction, and for sure at the center and cornerstone, innovations and sustainability. Bottom line is a very solid first quarter, a good start into the year for our company, heavy growth in our business and a wonderful cash flow, I'd say. With that, I would hand back to our moderator because we are now at our session for question and answer. Thank you. Ladies and gentlemen, if you would like to ask a question, please press nine star on your telephone keypad. If you would like to withdraw your question, press nine star again. I'll repeat once again. If you would like to raise a question, please press nine and a star key. The first questions are coming in. The first questioner is Mr. Akshat Kacker of JPMorgan. Please go ahead. Yes. Good morning. Akshat from JPMorgan. Three questions from my side, please. The first one on total cost inflation. Can you just talk about your total inflation expectations for fiscal year 2023, especially when you compare it to the levels that you have seen in 2022. Do you expect it to be higher than last year or roughly at similar levels, please? In terms of the pass-through to your customers, do you still expect to pass through a large chunk of that inflation headwind, even though it is mainly now driven by energy and labor? That's the first question. The second question is on industrial. Can you just talk about general lead indicators on demand across different end markets, and probably some general comments on order intake and overall activity levels that you're seeing as your customers will be very helpful. The last one on working capital, can you also talk about the management of inventories and how do you expect this to evolve going forward? Do you still expect to keep high levels of safety stock for uncertainties in supply chains and volatile customer call-offs? Some details there as well, please. Thank you. Thank you very much, Aksha, for your questions. We're going the following way. You raised three questions. The first two, I will start to comment upon in terms of working capital, then Stefan will jump in, and then for sure we'll have a fruitful discussion. Yeah, in terms of cost inflation, the cost inflation bucket this year around consists of three elements. It's still material inflation, but then there is also, for sure, energy inflation, and last not least, labor inflation. In terms of how does that impact us this year. You know, it's quite early in the year, and this is, unfortunately difficult to say. Why is that the case? You know, I take the example of energy. Energy did lead to an additional cost point in our P&L of almost EUR 1.5 million for the first quarter of this financial year, for sure, driven by Europe. This is what makes it difficult, right? Because we've been, in October, November, impacted by this EUR 1.5 million almost. This kind of puts pressure on 0.5% up to 1% on our margin position in the first quarter, and it pretty much depends on the energy price. All of a sudden, we saw in January the prices for energy coming down again. There was certainly an effect in the first quarter, which made up for 0.5%, up to a percentage point for energy in terms of electricity and also gas in our plants. Half a percent, up to 1% in the first quarter, driven by energy. This will be different in the second quarter, because from today's perspective, if a mild winter continues, the energy costs will come down. This is actually what we see currently in our P&L happening, so that this effect is not too big anymore. Let's talk about material. The material effect of our business is or has been in the past years, 4%-4.5%. Late last year, means in our first quarter, we saw that coming down to an impact which would be also in the range of 1%-1.5% on top what we've been seeing in October, November, December. On that angle, for sure, starting this calendar year, prices are coming down. Also here in the first quarter in total, along with energy, we've been burdened by, I would say, EUR 3 million-3.5 million in terms of material and energy combined in the first quarter of our financial year. Difficult to tell how that continues, because that's pretty much depending on how energy costs go, how particularly gas and electricity goes in terms of prices. You can kind of, as an overarching point, see that EUR 3 million- EUR 3.5 million are driven by materials and also energy in the first quarter of our financial year. In terms of labor, we have a very good understanding around the globe on how labor inflation would go. The labor inflation on global terms in average would be in the range of 4%-5% year-over-year. We typically, in our business, make up for 3.5% by efficiency measures. The impact here will be also in the range of EUR 1 million-EUR 2 million for the year on a premium in terms of labor. That means bottom line is our expenses, additional expenses above and beyond the budget in materials and energy was in the first quarter, EUR 3.5 million, which we claim back from the customer and are in negotiations to get reimbursed from the customer. Also in terms of labor, we have a pretty good under control in terms of improving our effectivities in the plants to make up for the majority of this inflation. How this continues for the year, it, that's an unknown for us because that, as I said, pretty much depends on how the energy costs go and how material prices develop in the light of energy inflation in general terms. For the here and now, as I said, in the first quarter, about EUR 3.5 million impact on our bill of material on our P&L, driven by bill of material and the labor effect and energy effect. This is something which we actually don't see in January and February and March happening, but that pretty much depends on how energy costs in general terms develop. In terms of industrial indicators, that was your second question. Industrial indicators are actually, by region, I would say very stable in North America. In Europe, also stable, but on a lower base than expected following the general economic situation of Europe. In China, it's volatile because as also Stefan mentioned, we've been impacted in China on our industrial revenues by the COVID lockdowns, because particularly those who in strong quarters did buy a lot for small equipment, for machineries, refurbishment of machinery. Those apparently haven't been purchasing too much because they have been sick at home, or they've been suffering the lockdowns. In Asia, it continues to be volatile, and it extremely depends on how the rebounds of COVID will happen in the next quarters. This rebound, the COVID situation and the COVID relief impact are planned to be positive, I think, from majority of the analysts out there as well. This actually will drive our sales development to a positive on the automotive and on the industrial side on the long run. However, in terms of order intake, we have the visibility only for the next six weeks round about, and indicates that in North America, it's stable. In Europe, it's following the softness of the market, and on the Asia Pacific region, it's pretty much dependent on the recovery of the Chinese population out of the corona crisis. That's in terms of industrial indicators, for the different regions. With that, I would hand over to Stefan for the third question around about working capital. Thank you very much. In addition to what Michael already said about the development of our different areas, if what does that mean for our working capital and the activities that we're going forward. All of you remember that we always said that in our last fiscal year, we took the clear decision also to increase likely the working capital, mainly the inventories of that perspective, to be able to manage all supply chain issues. What we can currently see is, at least on our side, all these supply chain issues, at least kind of worsening, but they are step-by-step getting reduced all, and this we always have to say in brackets, all depending on what will happen then also now in Asia and in China with that difficult situation with the this opening after the corona. That is what we are looking very carefully. But on the current level, we see the tendency that this we are reducing continuously step-by-step on that level, our base inventory outstanding, to optimize our leverage and that perspective on the inventory side. That is what is what is helping us on the one side. On the other side, we also have to say that, clearly the accounts receivable, the accounts payable already pays in the full net working capital picture to absolute overall. There, our customer, but also us, it mainly also driven by Europe, but also some all in China. They reduced, they made also some closing days on Christmas. Therefore, we have acquired reduction of operating activity in the last days of December. I would say a little bit lower the activities than what we've seen in the last year. This is nothing that is that falls from heaven. This is absolutely something that was also foreseen and expected from our side. In that context, we see also here a slight reduction of our receivable, obviously, compared to the first quarter last year. Mainly this is driven not significantly reducing the inventories, but on that level, being very careful at those level where we still see supply chain issues. We will not reduce that. On other levels where we say, yes, that should be solved, we are reducing them step-by-step, slowly, and we can see that also now directly on our KPIs, which are reducing and obviously in the first quarter free cash flow, you also can see here a positive impact. Finally, to also make that absolutely clear, if you compare Stabilus Group on the total net working capital side with other companies, lots of other companies have huge programs in terms of STAR programs, significant high values in factoring and all this kind of stuff to optimize their receivables. There, we are not doing that in the same extension like others. Here at Stabilus, a very small amount what we are, what we're doing. Therefore, this is important if you make any comparison with that, because there is no window dressing what we're doing, and I know that others are doing that. We are not doing that. All for all, we still believe that with the supply chain getting better and better, we still have some optimizationpotentials in reducing our safety stock in that perspective, continuing the next quarters. I think this is, to add to that, the important point we've been seeing last year because to many of our customers, particularly on the industrial side, we've been calling out this very reliable business partner due to the fact that we had inventories on hand and could react very fast and sell our products, whereas our competition kind of took three or four times more in terms of timing, up to two, three months, to fulfill customers' orders. We could fulfill them right away with some more material and stocks and could prove ourselves as reliable business partners, which actually continues to drive the business as we speak. This is why, quarter-over-quarter, comparing last year to this year, we also had a very good growth rate on the industrial side still because customers typically on the industrial side don't forget that. They still stick to us as reliable partners and they will in the future. I hope that did answer your questions, Saksham. That great detail. Thank you so much, Michael. Thank you, Stefan. Thank you. Thank you. Next, we have Mr. Marc-René Tonn of Warburg Research. Your line is open. Yes, good morning. Thank you for taking my question. First one would be on labor cost in Europe and in Germany in particular, which with regard to these one-time payments, which will be paid in accordance with these collective bargaining agreement. Can you give us some indication on how you are treating these one-time payments, in other words, on how much of these, let's say, either EUR 1,500 or EUR 3,000, whichever the total amount, has already been a burden in your Q1 results and had been, let's say, one of the reasons perhaps, in addition for what, let's say, a bit softer result in the Europe region. That would be my first question. Second question would be on profitability in APAC, which was, again, very strong at a level of above 20%. I think you may share some indication what you would expect for the next quarter. Is it, let's say, profitability is well above, let's say, group average? Is it something we should also, let's say, expect for the quarter ahead? Or do you expect some, let's say, leveling off to more an end of teens level rather than above 20% for that business? The third question would be regarding in the industrial business, the ECIMA business, which you mentioned. I think very strong growth when we look at Q1 this year, let's say, around EUR 23 million when compared to EUR 15 million a year ago. Could you give us some indication on, let's say, the next quarter, should we expect it to remain in this, let's say, mid-twenties level? Perhaps you could also, let's say, give us some indication, at least in qualitative terms, on how this business is ranked in terms of profitability compared to the other businesses within the industrial part of your business. Thank you. Thank you very much for your questions. actually, Stefan will give it a start with the first two questions, and then a third question will be answered by myself. Stefan, please. Okay. Thank you very much. Starting with the labor cost and mainly the labor cost inflation in Germany, you mentioned exactly that there is, let's say a kind of, I call this hybrid module to increase the salaries in Germany, the one-time payments, and also a continuous increase later on. What we made already in the first quarter, we already made as it is the complete negotiation for one year, we already made an accrual for all this expected increase of the labor costs in Germany. That will mean that those, 1,500, even when the payment is not done yet, but at least this amount is already covered by our accruals in Germany. We know that we're doing there a very conservative approach. We believe that this split of the full range of coming in increases have not to be or should not be shown in the month that they are paid because this one-time payment has nothing to do with the individual month where the payment was done, but it's a full year exercise and therefore the one-time payments, but also those then expected continuous increases we're starting in putting their accruals. Therefore, you're absolutely right. That is also one reasons why we are a little bit lower in terms of profitability compared to last year. Also, as Michael said, normally, we are counting with having 4%-5% labor cost increase and then getting a 3% of productivity increase. Also that productivity increase then will start on a continuous base and not a one-timer. The, these productivity measures are obviously the result of a lot of different activities which will happen during the year and therefore are not yet covered completely for the beginning of the year. Also in other regions, or in other countries, I have to say, when we talk about Romania also here, obviously the lower basis of salaries and wages, but nevertheless, here we have also double-digit increases of wages where the, let's say the compensation brackets that we would get by increasing productivity is something that we have to work on, and we are working on them and getting step- by -step, let's say, positive impacts on that. Going to the second question from you, the profitability of APAC Still once again increase. What we can see here, the two issues that you have to have in mind. On the one side, we have compared to last year, a good and significant growth. There we have to, therefore, you also see with growth in sales, you can see very positive volume impact on your cost of goods sold. I think that's a normal development. Also here we have to be careful in Asia, not thinking about a self-fulfilling prophecy. With all the current situation that we see currently also with what happens then after Chinese New Year. The big growth rates, currently, we have to be a little bit careful on that perspective. This could have, also a trend of getting some negative, smaller negative impact because this puts significant volume increase. We cannot say that this is that this is a prophecy which is valid for the years coming up. We also mentioned that the light vehicle production APAC is flat, so it's not an increase in that quarter compared to the last one. Also there you can see that is nothing that is that is part of our story. In those markets, those big growth rates currently are a little bit lower. Therefore, I would be careful on that side. On the other side, we also see that we got some also some incentives that we that we get and which are which are valid, which coming in the in the first in the first or in the second quarter of the year. Because due to the fact that we made those investments in the pre-group plant. That is also something that we have to have in mind, that this is nothing that comes quarter by quarter, but it's already impacted here. But it's of a lower value and lower importance in that perspective. At the end, finally, labor cost. Yes, we already made accruals. We are on the conservative side, which explains a little bit the situation. And we are anticipating, if you wanna say, even slightly the expenses. Profitability in APAC depends on the market development and the growth going forward. There we have to be careful what we expect from China, and especially now with Chinese New Year. We have to see how this, how the economy comes out that activity now beginning of February. Thank you. I will kind of touch base a bit on your third question, which was concerning the segment on the industrial side of ECIMA. ECIMA is for us, the Energy Construction Industrial Machinery and Automation. This is actually what I was talking about when I've been talking about the general principles of a business model at Stabilus, which says, "We want to be, and we are a leading company in terms of precision and technology," and this is why it's a focus element of us. Why is it a focus element? Because this is something which is a general and global trend, the industrial machinery automation sector enjoys good growth rates because also supported by in the region, for the region. With all this geopolitical unrest out there and the issues in the world, people, companies and government try to focus on their home turf, on their home region, and invest in the region where they can kind of get a hold of things rather than importing products from other regions. This general trend drives industrialization. It also drives that some of the products need to come back and be produced in the home region, which means also being confronted with higher labor rates. That's why automation is the key for those companies who decide to produce in the region for the region. Industrialization and automation goes very close together. You see that also in the doings of the Stabilus Group, because we started as, yeah, the first and the only supplier out there who produces gas springs on a fully automated equipment. We are about to do the same for the POWERISE systems. We know what it means to do automation and industrial machinery. This is why it's not only for us a growth sector, but also for the industry in general term, and this is what we are harvesting from. That's what you see in the numbers. Your question was, will this continue in that way and will we see also growth rates in the future or share rates in the future of being beyond 20% on our industrial share on this pie chart, which we are referencing to on page 14? Yes, indeed, that's our target, that we are in the range of 20% plus share of the energy construction, industrial machinery and automation sector, to make sure that we get our share and grow where it really matters in the area of technology, where Stabilus is really strong. Then in terms of margin, it's a mixed bag because behind and in between these different segments, there are a lot of products and a mix effect also occur once in a while. However, what you can see clearly out here is that, for example, the furniture sector is a little softer in terms of share, and this probably will continue because we see here the margin, let's say a percentage point or a bit more, below the other segments. We indeed wanna focus on the remainder of the three segments, independent aftermarket, e-commerce, mobility and energy construction, and industrial machinery automation. That's kind of the focus points for us for now and in the future, just considering where the mainstream of population and mankind goes to. I hope that answers your question. Thank you very much. Yes, indeed. Thank you. Next we have Ms. Yasmin Steilen of Berenberg Bank. Please go ahead. Yeah. Thanks very much for taking my questions. I have also three, if I may. The first one, a follow-up on the free cash flow development. Following the strong free cash flow supported by the excess, already outlined the tailwinds from working capital relief, among others, by lowering the safety stock. You mentioned already that this might gradually come down further. How should we think about free cash flow development and the build-up of working capital in the second half, assuming a back-end loaded business model? This is my first question. The second on POWERISE. In Q1, we have seen again a tremendous growth. When you opened the last POWERISE plant, you indicated that it will be fully booked in 2024. Is it still the plan, or might you require additional capacities at an earlier stage? The last question on M&A. Your 2030 targets imply also some inorganic growth given the deteriorating macroeconomic environment, a change in the interest curve. Have you experienced any significant changes in the M&A dynamics in the industrial space, for example, such as deteriorating of the takeover multiples or reducing interest of potential sellers to start negotiations? That's my last question. Thanks. Very much. In terms of the cash flow and cash flow impact, Stefan will answer, and I'll take question number two and three. Stefan, please. Thank you. Free cash flow development for the rest of this fiscal year until end of September. You said really much the back-end model, how that will develop. On that perspective, we mainly believe that the back end is in terms of profitability because that is on the one side, fulfilling all and following also the seasonality that we have established. Also on the other side, also knowing that in the first quarter, we have Christmas and in December, therefore, the sales mainly in Europe, but also somehow in other regions are lower than at the end of the year. Therefore, just thinking of talking about the seasonality. We are expecting that receivables will grow up compared to the December value as a total number in until September. I think that is that is a normal development due to this I call that Christmas impact. That is something that I believe that is quite a normal development. On the other side, we believe that on the inventory level we would not see that the overall amount of inventory has or will increase significantly. I would believe that that is more on a stable level. What we are also now doing is starting to work also on the payable side, where, you know, in past, the main topic was also for purchasing, I think in all the different companies to say we need best possible pricing and we need the availability of the products. Now it even gets with somehow a little bit normalized relations and development with our suppliers. Now it gets to the point in saying, okay, we also want to work on optimization also in terms of base payable outstanding a little bit and optimize also the situation. There I would expect that payables will compensate a little bit. Yes, you are right, the, the receivables mainly with the hope. Nobody knows exactly how this will continue in the hope that China will come back with a significant growth rate, but this to be seen on a day-by-day basis. There we have to say that also the receivables are longer payment terms compared to Europe, but also there that is a normal development in the market, and it's nothing particular for Stabilus. Finally, to summarize that, yes, on the receivable side, I would expect somehow an increase inventory quite more on a flat level, not significant increase. On payables, hoping that we are able to optimize the situation a little bit. Overall, the total amount of working capital on the receivable side might increase slightly. Thank you very much, Stefan. I will talk a bit about the second and third question you had. First of all, in terms of POWERISE. As a matter of fact, it's POWERISE in the given circumstance or sense of the traditional tailgate opening system, but also door actuation, because one thing which is extremely important to us is the massive growth also in Asia in terms of door actuation systems. Just to keep in mind, we've been selling more than 100,000 door actuation systems last year. Where it's only the passenger, the driver, and the rear seat doors, which are actively opened, including the sensorics, ECU, and software. Also the POWERISE for sure is extremely good growth driver for us, particularly in Asia, however, also in Europe and North America, because here we see fitment rates increasing as well. However, your question was mainly driven by the Pinghu plant, which is for sure China. We opened up this plant in critical times in the year 2020 in the midst of corona lockdowns. We see our plant now booked by, I would say, beyond 50%, so halfway. Indeed, back then I said that it would be fully loaded by year 2024/2025. It's towards the end of the year 2024 and in the year 2025 when we plan to fully load the plant with equipment. We're anywhere halfway. You know, the times to invest in capacities in China has a different lead time from other regions. Typically, even if it's infrastructure, it takes, you know, much longer than half a year. I'd say in the year early 2024, we will define based on the given circumstances in terms of demand, how we further increase this capacity. From today's perspective, there will be an increase in capacity. We have certain opportunities on the current footprint because our property allows us to do a mid-size expansion still there and increase capacity. However, this will be decided early 2024. If we continue with the same pace of growth, then for sure we will add capacity as we speak beyond 2025. The current numbers we see along with our customers are going into the direction that we early next year on the current property, continue to expand our footprint. Let's see how things develop in 2026 and beyond. In terms of M&A, our 2030 target is to be in the range of EUR 2 billion sales. That includes for sure, mathematically and in our strategic plan, an investment in M&A activities within the next 12 months-24 months of significant size. Significant size, I mean, in total terms, in the range of EUR 120 million-EUR 150 million sales revenue per year. That's what we want to invest in. We have the right firepower on hand in order to do the financing of such a target. In terms of signal changes, currently in the market, yes, there are some changes, means the multiples are coming down for average targets. As I said at the beginning, our target focus for M&A activities is on the industrial side for electric and electromechanical stuff, which underlines the growth path of industrial machinery and automation. This area of higher technical sophistication is driven still by high multiples. The multiple landscape did maybe change half a term or one term, but not in a significant way by the latest developments. We are committed to that strategy, have enough firepower on hand to pursue that plan, and will do so in the next 12 months to 24 months. I hope that answers your question. Yes. Thanks very much. Very helpful. Thank you. Are there further? There are no further questions, no. If not, thank you very much because I think we are right in time with our call today, and we are enlightened about your interest in the company. Thank you very much for your attention and wish you a successful day and a successful week. Thank you. Thank you very much.