OPmobility Aktie

Welcome to the OPmobility Q1 2026 Revenue Presentation. [Operator Instructions]

Now I will hand the conference over to our speakers, Felicie Burelle, Chief Executive Officer; and Stephanie Laval, VP Strategic Planning and Investor Relations.

Please go ahead.

Good morning, everybody. I'm very happy to welcome you today to this Q1 2026 revenue presentation that, as it was just mentioned, I will do with Stephanie Laval.

So I will go quickly on the highlights of this Q1 2026 figures. We will deep dive with Stephanie on the performance and what was driving the dynamic at OPmobility, and then we can obviously exchange and engage, discuss any questions you might have.

So if we go on the first slide. You have here a summary of what are the key highlights for us for this first quarter 2026. So a stable economic revenue without the foreign exchange impact in a declining market. So we can say that it's a solid performance that the group has achieved when it comes to economic revenues, while the market was -- has been decreasing by 3.4%. So that again demonstrates, I think, the resilience of our business model and also the relevance of our diversification strategy that enables us to compensate regionally and by customer, what is happening on the market.

The performance was strong in North America and Asia. If we take a look at the geography standpoint, strategy. So solid organic growth that was supported by solid execution and a favorable commercial dynamic in those two regions. We will come back with further detail afterwards.

Obviously, all of that is happening in a challenging context. We all know that. When we met for the 2025 annual results, the market was forecasted to be stable at minus 0.3%. The latest release is showing a decrease of minus 2% for the whole year with Q1, so that has been challenged. But that being said, as far as OPmobility is concerned, there was no significant impact on the Middle East situation on our Q1 performance.

Obviously, we will focus on tracking what is happening as the situation remains very uncertain every day. But no significant impact, not to say none on Q1, but we remain really agile. Obviously, we are putting measures in place to anticipate any impact to come on the second quarter and ready to implement any additional measures if the situation was to deteriorate.

Back to what happened by region. So as you can see, we had a solid growth in North America, plus 4.9%, so much better than the market, that is minus 1.4%. And here, also, which was not the case at the end of the year, the trend is positive in both the U.S. and Mexico. U.S. was supported by higher demand on the C-Power activity and, notably, with Stellantis that has been recovering in the country. And Mexico, end of the year, we suffered, so to say, from some delays and slow ramp-up, which were in a much more positive trend on Q1.

Same very positive dynamic in Asia, plus 7.3% for OPmobility in a market that has been declining by almost 4% with two different trends. When it comes to China, we all know that's one of the key, I would say, difference versus 2025 is that China has entered into negative territory when it comes to the automotive market. In that context, we did better. We did not suffer from the big impact of the BYD decrease, and we have managed to maintain a relative growth in the country.

Rest of Asia. So when we speak about the rest of Asia, it's India, Korea, Thailand, we benefited from growth when it comes to Thailand to good demand on the C-Power activity. Korea, a strong push again, same as last year, benefiting from the Module activity with the JV here that we have there with SL. And in India, markets that is behaving positively. And here, we are benefiting from all the activities that are present, so notably C-Power and Exterior, that have been growing in the country.

Europe, a bit of a different trend. Here, we have declined by 5.2% in a market that was down minus 2%. The reason for that is that we have had notably the Exterior activity, less start of production because some of them were delayed. They will come later in the year. So that has impacted directly overall. But we have visibility that, that will impact the first half of the year, but we will be able to catch up when it comes to those SOPs by the end of the year.

If we move on, yes. So next slide, again, commenting on the environment. Clearly, the dynamic is not the same as we have started the year. The latest release of S&P, as I said, now is putting the market at minus 2% for the whole year with a specific revision of Q2. But again, here, we are being very cautious. So far, we have not had any specific deviation mentioned by our customers. So no specific degradation on the volume to be expected again today. But again, we are putting in place different mechanisms to mitigate what is the indirect consequence of this situation, which is the increase in energy costs and in raw materials.

When it comes to raw materials, we have most of the time, indexation clauses that we are activating. And when it's not the case, we have the regular discussion with customers and suppliers. When it comes to energy cost, we have a good hedging strategy in Europe. And when it comes to other countries, again, we are putting specific measures on the customer and supplier side to try to mitigate that.

And we also are implementing, I would say, so to say, usual playbook in those type of situations, where we are very cautious about all the unnecessary spending and trying really to focus on what is very strictly necessary to the management and the direction of our activity.

I guess we will come back to that in more details potentially with your question afterwards. So I will let Stephanie take over.

Thank you, Felicie, and good morning, everyone. Looking at Q1 revenue. OPmobility posted a resilient performance in a declining market. If we exclude the FX impact, as you can see on the chart, both economic and consolidated revenue outperformed the market by, respectively, plus 3 points and plus 1 point. In the first quarter of 2026, group economic revenue remained stable on an organic basis at EUR 2.8 billion, and the FX impact impacted significantly the revenue in Q1, mainly linked, of course, to the U.S. dollar.

Now looking at the evolution of the revenue in detail. The two segments, Powertrain and Modules, are compensating the lower revenue in Exterior & Lighting in Q1, as you can see on the chart. Powertrain economic revenue amounted to EUR 654 million in Q1, representing a very strong growth of plus 5.5% like-for-like, mainly driven by higher volumes of fuel tanks produced in North America. Modules revenue reached the level of EUR 912 million in Q1, posting a growth rate of plus 2.6% like-for-like, mainly driven by higher volumes of modules assembled in Austin in the U.S.

Turning to Exterior & Lighting. The revenue amounted to EUR 1.3 billion, down minus 5% on a like-for-like basis. This performance mainly reflects lower production volumes for Exterior in a still challenging market environment. Finally, our joint ventures continue to provide a very solid contribution with YFPO in China and SHB in South Korea growing double-digit on a like-for-like basis in Q1 this year compared to Q1 last year.

I will now deep dive into the business highlights for each business group. Moving to the Exterior solutions in the first quarter of 2026, covering both Exterior & Lighting and Modules activities.

Regarding Exterior & Lighting, the production of exterior systems in the first quarter was impacted by fewer launches compared to Q1 last year, mainly in Europe as well as programs that were postponed. Nevertheless, the business group maintained strong commercial momentum in Asia, especially in India and in China, supported by several key launches and key awards, as you can see some pictures in the slide.

In India, where Exterior continued to accelerate, as an example, we have started to produce bumpers for the Skoda Kushaq. Through YFPO, the joint venture we had with Yanfeng, our Q1 Exterior revenue in China benefited from the strong momentum of activity with major Chinese players. To illustrate, we have started the production of bumpers for Xiaomi, and we also secured several programs with local OEMs, including bumpers for Huawei. This demonstrates the relevance of the diversification of our customer portfolio with local OEMs, particularly in a challenging Chinese automotive market.

If we now have a look at Lighting, where activity improved in North America during the quarter, supported by the production of headlamps for the recent launch of the Rivian R2. For this vehicle, you may also note that OPmobility is also producing the bumpers. In Europe, the activity of Lighting continues to be low as expected in Q1. However, starting in Q2 2026, the Lighting business will benefit from several launches secured as part of the post-acquisition order book. As these programs progressively ramp up, they are expected to contribute to volumes recovery and revenue growth in the coming quarters for the lighting activity.

Moving to the right side of the slide to the Modules segment. Performance in North America in Q1 was driven by the ramp-up in volumes for the model launched in Q3 last year for a major U.S. EV player in Austin. And very recently, as expected, the group has started to assemble the first modules for a robotaxi program in the same plant in Austin, representing a key milestone ahead of a very gradual ramp-up throughout the year. In addition, Modules continue to deliver strong momentum in South Korea for the HMC Group. The JV, SHB, also secured a contract to produce front-end modules and carriers for the van PV7 of Kia, confirming the region's roles as a key driver growth for OPmobility.

Now let's have an overview of Powertrain, our segment offering a comprehensive range of technical solutions for all types of powertrains, from fuel systems to battery packs and hydrogen mileage. Let's start with Fuel Systems. The group benefited in Q1 from increasing fuel tanks volumes, notably in the United States and in Mexico. In Q1, the business group also enjoyed commercial momentum with the launch of the GMC Acadia and an award for the Cadillac Escalade, and you can see pictures on the side. Beyond North America, the Fuel Systems activity continued its expansion in South Korea for Kia, in India for Renault and in Thailand for Toyota.

Moving to the battery packs activity. This activity is also expanding. The ramp-up in collective mobility continues by securing a contract with Allison, a bus manufacturer, to integrate battery packs into buses in the U.S. The group also secured a major award in the U.S. to supply battery packs for a global OEM future hybrid models. Over the lifetime of the contract, OPmobility will deliver more than 1 million battery packs, marking our entry into the passenger car segment for this activity. This award reinforces our unique hybrid positioning, combining battery packs and fuel systems to optimize energy storage architectures for next-generation vehicles.

Finally, hydrogen continued to move forward in Asia, driven by increasing traction with Chinese EV mobility players. In China, in particular, this dynamic is reinforced by a supportive regulatory framework that has been clarified by the Chinese 15th Five-Year Plan released in March 2026. It will improve long-term visibility, strengthen project pipelines and support the progressive expansion of hydrogen deployments.

Overall, Q1 2026 demonstrates continuous execution and progress across all powertrain technologies, supporting our long-term growth strategy.

I'll now hand over to Felicie, who will conclude the presentation.

Thank you, Stephanie. So as we said, so resilient Q1, stable revenues in a shaky market. Obviously, as I said, we are closely monitoring the evolution of the Middle East situation and its indirect impact because, again, Q1, on our side has not been impacted by the ongoing conflict.

In parallel of that, beyond the short-term execution, we also continue to pursue our strategic development with two opportunities that you know. The first one, we will, in Q2, finalize the extension of our YFPO perimeter with our partner, Yanfeng. We will open that to decorative lighting and modules. And also, we keep on moving forward with the potential acquisition of the Hyundai Mobis lighting business. We were there again 2 weeks ago. Due diligence is ongoing, and we are still in the same time frame as mentioned in previous call, so hopefully, by the end of the year.

So all of that is putting us in a situation where our financial ambition for 2026 remains unchanged. Obviously, again, as I said, still paying very close attention to what will happen, but committed to improve all of our KPIs that you can see on this slide.

So to conclude, I would only again reemphasize the fact that I believe that our Q1 revenues demonstrates the relevance of our strategy, that we keep on pushing diversification of customer, technology, countries. We are very much focused on those two important opportunities in China and in Korea. And again, we are confirming our 2026 targets.

With that, I will open the session for the Q&A part.

[Operator Instructions] The next question comes from Thomas Besson from Kepler Cheuvreux.

I'll ask 3 questions, if that's okay, I'll ask them one by one. Firstly, on the Lighting business, can you maybe share with us some elements about the geographic revenue breakdown in Q1 or in 2025? You shared the fact that you started the business with Rivian, but it's a bit small. Can you confirm for the time being that this is mostly a European business? And can you also confirm the turning points you expect for revenue in Q2 or in H2 for this business? The first question.

So on Lighting, it's really -- it's Europe and Mexico essentially and the, I would say, expected increase and beginning of SOPs that are actually happening this month are mostly in Mexico. So the trend that we will see developing positively in terms of those projects ramping up will mostly happen in the North American region as of Q2 -- as soon as Q2.

Second question, you talked about the robotaxi first and very gradual ramp-up. Is there anything you can share with us in terms of annual volume for that product? Is it going to be a few hundred units, a few thousand units, a few tens of thousands units?

I mean we were there 2 weeks ago. They are really fine-tuning still the design and the model, which is why we believe that the ramp-up will be very progressive. So we really have low visibility as of today in terms of volume. In terms of content, as we mentioned in other sessions, it's double than what we had on the previous models. So the content is good. Perspective on volume, hard to say. But those types of, I would say, program is in the range of 50,000 or less.

Last question on Mobis. I think you've visited Korea recently.

Yes.

So the process is still ongoing. Can you share with us whether it's more likely to be a full acquisition or a partial acquisition and confirm that this is going to be done with existing liquidity?

So on the first one, it's still open, and I can't really comment because it's really part of the ongoing negotiation. For sure, it will be majority for us. But I can't say more on the actual percentage of share. And for sure, yes, to your second question, no impact on the liquidity.

The next question comes from Michael Foundoukidis from ODDO BHF.

Also a few questions on my side. I will do as Thomas and ask them one by one. First, you confirm the 2026 operating margin guide above 2025, and you said unchanged financial ambition despite flagging cost pressure, of course, from mid-February. Could you help us quantify a bit more precisely, let's say, the gross headwind from raw materials, energy and the freight that you are now embedding in the guide and the offsetting contribution from indexation clauses and hedges?

And maybe still on this one, what may be the implications regarding earnings seasonality between H1 and H2, given some lag and some discussions? That's the first question.

Maybe starting with your second part. Normally the seasonality we do see throughout the year is that H2 is lower than H1. The problem is that nothing is normal anymore. And back to the delays we were talking about earlier in the presentation, we might see the opposite happening. But that, again, will depend on how long this conflict will happen. And that's why for us, it's really difficult today to take any position on that.

Obviously, we are taking it semester by semester. The good news is that when it comes to semester 1, so Q1, as I said, no impact. So now we are really focusing on mitigating all potential impacts for Q2 and have a first half of the year that is in line with our expectation. But talking about H2, it's really difficult to assess because, on top of it, you know that part of the mechanism that we have in place that are protecting us have a time lag effect. So again, we are cautiously assessing what it means for us in terms of mitigating all those impacts.

Okay. My second question is on Europe. It was down 5% versus market, 2%. You said it's driven by some SOP postponements. Could you help us a bit on which programs, which customers? And are these pushed to Q2 to H2 or maybe into 2027? And what kind of revenues are we talking about?

So we are talking mainly about Europe. We're talking mainly about the exterior activity. And here, so it's more a decision to postpone some of the SOPs later in the year, so not beyond 2026. So that should stay within the year. But as you know, this activity, exterior is the one that is having more sales that are linked to its tooling and not only the volumes. And those sales of tooling, you can recognize them when you have the SOP. So the impact is really coming from that. And the fact that we have less SOPs now than expected, but that will come later in the year. So Europe and mainly French and German OEMs.

Okay. Maybe another one on Hyundai Mobis, but not on the lighting. There were some rumors, I think it was last week, saying that you were also possibly interested in the exterior business. Could you comment on that?

I mean it's part of their full portfolio assessment on the Hyundai Mobis side. So definitely, they are also questioning this activity on their side. But obviously, in Korea now, there are a lot of -- now that the deal is public, and we've met also with high-level officials 2 weeks ago and so on, there are a lot of rumors and nothing to be drawn from what was said. We are fully focused on the lighting activity.

Okay. And maybe a last one on China. So you had a significant outperformance of almost 8 points, partly driven with YFPO. First, what do you expect in H2 from the closing of the new JV, let's say, perimeter at the end of Q2? And then more generally, what's your view in terms of outperformance for the remainder of the year in China?

We will do, I think, better than the market for the year. And this is thanks to the fact that YFPO has done its diversification strategy when it comes to shifting to new OEMs. But its customer portfolio is well balanced. So we are not suffering from hiccups or strong decrease, sharp decrease like, for instance, BYD in Q1.

As to the closing, we believe it will enable the YFPO teams to, one, push stronger on the YFPO product line in China. And we know there is strong appetite on this product line there. So adding modules and decorative lighting. And also, it will be a way for us to grow and consolidate the market on the module side which is, today, a bit, I would say, fragmented. So bringing our modules and their modules to the YFPO scope will enable us to have a stronger leverage locally for this product line.

The next question comes from Jose Asumendi from JPM.

Felicie, Stephanie, a couple of questions, please. Can you comment on raw materials and the impact of rising raw materials in the business? And what are you doing about it in terms of the price increases as we think about first half of the year?

And then second, can you comment, please, on China? How do you see overall the market into Q2, second quarter of the year and also your outperformance to the market into Q2?

So on the raw materials, it is, I would say, the greatest exposure when it comes to our operating model in terms of impact. Today, we have, I would say, a good significant part of it that is having indexation clauses. So here, it's a matter of, again, time lag and how to mitigate that throughout the year to make sure that, overall, we are not suffering from the impact. And for the rest, we have to entertain some discussions, so how to get more compensation when we believe the contractual framework is not sufficient.

But we are also not only counting on that. We are putting again measures, really spending less of what is -- without jeopardizing the big topics that we've mentioned from a strategic standpoint, but being more cautious in terms of spending, in terms of traveling, in terms of some of the internal projects that we do have, put them on hold until we see how the situation develops and come back to, I would say, a normal level of activity. That's how we are mitigating this impact.

For China, Q1 was especially impacted by the strong swing from BYD. However, the export dynamic remains quite strong. Export from China to the rest of the world. So Q2 should be definitely better, I think, than Q1. And here, again, last year, we grew by 5% versus a market that is plus 10%. And this year, we believe we will do better than the market, which would be negative. But in that context, YFPO will perform and we'll...

We have one additional question was a written question from Citi, and I just will read it. Can you comment on the Powertrain momentum seen in Europe in the context of strong year-to-date BEV growth? And how should we think about the overall 2026 growth for this business across regions?

So regarding what we see in the momentum for the BEV segment in Europe, today, it's not a major shift. We can see some potential increase in the BEV, but it's not really a big shift in what we observe. Look at the performance we published for the Powertrain and especially the fuel tanks segment. So we are confident that it should continue to maintain a quite significant level of fuel tank business.

If we look per region on a full year basis, I will -- let be sure that in H1 we will continue to benefit from strong volumes in the fuel systems. And the trend of what we see in Q1 should continue in Q2. That's what we have now all the elements to say that it should continue in terms of volumes and driven in all the regions where the group operates. So we'll continue in H1. We will see in H2 because we'll see the trend. But for now, yes, C-Power and the fuel tank business should remain quite a driver of growth this year for OPmobility.

So this concludes the Q&A session. Now we have the final word by Felicie Burelle.

Thank you again for attending this Q1 2026 call. And again, we are very much focused on assessing the situation, but we also are happy to have a sound Q1 to engage this 2026 year, which we know was a transition year already versus when we consider the market globally, but obviously remaining cautious of all of what is happening currently.

Thank you for your participation, and see you next call.

Thank you, ladies and gentlemen. This concludes the call. You may now disconnect.

Good morning, ladies and gentlemen. Welcome to this 2025 annual results presentation, and thank you for joining either here in Levallois or remotely. I am pleased and honored to do this presentation for the first time as Chief Executive Officer.

And you might have seen in our press release this morning that the Board of Directors and the Chairman here present in the room have entrusted me with a great mission to lead our company into the next phase of development.

As many of you know, we have been shaping our company over generation with very strong family and engaged values, long-term commitment, financial discipline and also a deep sense of ownership towards our stakeholders. And I'm pretty proud to be continuing this legacy in the years to come. So I'm focused and determined to keep on executing our strategy.

And I'm particularly pleased to present to you today a solid -- very solid set of results, which I think are demonstrating the relevance of our strategy, the way to move forward and the resilience of our company.

Besides that, we are actively positioning our company on the future mobility hot topics, and there are many electrification, digital, AI, competitiveness, you name it, a lot of challenges ahead, but a strong road map to go there.

And I would like to do a special thanks to the Executive Committee of OPmobility, who is here in the room today and all of the OPmobility teams that are engaged in delivering this road map.

So now I will walk you through the results alongside Olivier Dabi, our CFO; and Stephanie Laval, Investor Relationship and Financial Communication and also strategy planning. So you now have the same person helping me building the strategy and explaining needs to the market.

Before jumping into the results, a bit of context on the market that you know is quite complex to apprehend today. More than ever, the regionalization and the pace of what is happening in between the region is growing and is diverging. We still have Asia representing 50% of the market and the North American market still strong in terms of demand with a sizable consumer market and Europe that is having its own challenges.

In that context, we are actively pursuing the diversification of our footprint and of our customers. Again, 2025 has been a year with some challenges in terms of OEMs volumes and supply chain volatility, still the semiconductor, but other topics that somehow have impacted our customers.

But again, we have shown resilience and flexibility and demonstrating our capacity to adapt to that and taking the measures necessary in terms of cost reduction to sustain this pace. 2025 definitely has been intense year in terms of geopolitical impact, starting with what happened on Liberation Day back in April. So impacting the strategy of our customer and the dynamics of the footprint.

But we have leveraged our sizable footprint, 150 plants everywhere. And this is providing us the balance to really be close to the customer and mitigate the impact of what can happen at each region.

Besides that, the pace of technology and innovation also is a different approach by region. We can see a lot of topic on AI, autonomous driving and robotization coming out of Asia and a lot around autonomous driving in the U.S. and we are getting closer with adapting our -- again, our organization to be able to better understand the customer dynamics and their needs, which has enabled us to make some great achievement for 2025.

We took the commitment to improve all of our KPIs, and we did. We will come back to that, but we have reached all of our targets, which has enabled us to put in place still a very robust financial structure.

Our net debt-to-EBITDA decreased from 1.7x to 1.4x. All of that demonstrating again the solidity of our business model. Strong acceleration. 2025 was definitely an intense year in terms of movement for the North American market. We have also initiated some strong initiatives for Asia, and I'll come back to that a bit later.

So we are happy that 2/3 of our order intake for 2025 is targeting regions outside Europe, which doesn't mean that we don't want to consolidate Europe, but we want to focus on the countries, we're showing significant room for growth.

And finally, we took the commitment for 2025 to be carbon neutral on Scope 1 and 2, which we have obtained and that including the lighting activities that we bought in 2022, which were not considered when we set up the target back in 2019. A bit of color on the activity by region. So you can see Europe still representing half of our revenues. And in a market that's slightly decreased, we have been happy to enjoy some growth, mainly in Western -- Eastern Europe countries, led by exterior and our module activity.

North America represented 28% of our revenues. So if you look at globally, you can see that OPmobility decreased by 1.5%. But if you look at the reality by country, we grew 1.2% in the U.S.A., while decreasing in Mexico, Canada by almost 5%.

Obviously, the trade tariff has had an impact on the Mexican market and slower ramp-up and some delays have led us to decrease in the region. Almost 20% of our sales from Asia and again, with a bit of a different dynamics in between China and Asia.

We have grown in both regions, in China, slightly less than the market, but still enjoying some growth, mainly coming from YFPO, while the C-Power activity was stable.

And a very solid growth in the rest of Asia with exterior in India, C-Power in Thailand and the module activity enjoying a very strong growth in Korea with JV SHB for electrification modules. It was also a year of strong launches, flawless launches, 144 launches. You can see here the split, almost 50 launches in Europe, 23 in Americas and 73 in Asia with some of the key launches highlighted.

We can talk about this U.S. EV player, which we cannot mention for whom we are supplying big modules that have launched this year and that sustained the growth in the U.S.A., but also the Jeep Grand Wagoneer to whom we are supplying our exterior parts.

In Europe, quite important, we are supplying the MMA -- platform for Mercedes. And you can see here, notably for the CLA in Germany, which was awarded Car of the Year, but also some key programs in the rest of Europe.

And in Asia, you can see some of the players, the BYD, Kia, Maruti Suzuki, which are all customers that are, I would say, enjoying a strong push and growth now and in the years to come. Overall, coming back to this solid performance, I think this slide pretty much illustrated, again, the solidity of how we engage and we deliver, execute our strategy road map.

So looking back on the 3 years, '23, '24, '25. So strong increase in operating margin, almost EUR 100 million plus of operating margin, strong increase in net result group share from EUR 163 million to EUR 185 million, and that with our capacity to absorb all of the impact on foreign exchange and cost of borrowing and nonrecurring costs, so impressive performance.

And finally, free cash flow generation, which is definitely important and key for us with almost reaching EUR 300 million for 2025. So very solid performance, and I will let now Olivier get into the details of it.

Thank you, Félicie, and good morning, everyone. In 2025, OPmobility posted very strong results, very solid results, significantly improving versus 2024. This was achieved, thanks to a very strong operational performance in our plant as well as a strong grip on our cost and a decrease on our breakeven point.

On this slide, you have a snapshot of all the main KPIs of the group, starting with economic revenues, which amounted to EUR 11.5 billion. It is a 1.7% increase on a like-for-like basis versus 2024.

The EBITDA amounted to EUR 1.001 billion. This is an 8% increase versus 2024. I want to highlight that this is the first time since 2019 that the group is able to exceed EUR 1 billion in EBITDA. A substantial increase in operating margin amounting to EUR 490 million, up double digit versus '24.

A strong net result, EUR 185 million, increasing by 9% versus '24. And as far as cash and debt are concerned, the group posted a free cash flow of EUR 297 million, up an impressive 20% versus '24. And in line with our strategy of deleveraging, the debt was reduced in '25 by EUR 167 million and amounted to EUR 1.4 billion.

So all in all, our '25 metrics was achieved -- were achieved in line with the guidance that we gave last year and that we reiterated throughout the year. As Félicie highlighted, this is a testimony to the relevance of our strategy and the quality of its execution.

Let's now look at each of these KPIs, starting by revenues. Revenues of EUR 11.5 billion, increasing by 1.7% on a like-for-like basis after taking into account EUR 300 million of negative ForEx with most currencies depreciating against the euro, mainly for OPmobility, the USD and to a lesser extent, the Korean won, the Argentinian peso and the Chinese yuan.

There was no scope effect in 2025. Looking at the performance of each of the business segments, starting by exterior and lighting. Exterior & Lighting posted sales of EUR 5.3 billion, fairly stable versus 2024 with 2 different trends. Exterior continued to increase its sales despite having less SOPs, less tuning and development activity than the year before, while lighting continued to suffer from the poor order book of -- prior to the acquisition.

I am pleased to say that in 2025, Lighting was able to secure additional orders and should be back on a growth track in subsequent years. Modules was the fastest-growing segment of OPmobility at EUR 3.6 billion of economic sales, posting an impressive close to 6% increase with sales in South Korea, as highlighted by Félicie, but in Europe as well.

Finally, the Powertrain segment increased as well by 1.4% on a like-for-like basis at EUR 2.6 billion, with all its components increasing. C-Power continued to have a very strong leadership in the fuel systems, strong market position, increased volumes in all geography and benefiting as well from the slower electrification ramp-up and back to increase of hybrid volumes.

Battery pack continue to build its business model, and it will be highlighted shortly that OP won a major order very recently, while hydrogen continued to build its order book and its portfolio.

Let's now have a look on the impressive increase of operating margin, EUR 490 million, increasing by EUR 50 million in 2025, up 11.4%. That's a 60 basis points increase versus '24 at 4.2%. And as Félicie highlighted, over the past 2 years, the group has been able to increase its operating margin by 1 point and by close to EUR 100 million.

Looking at the key success factors of such operating margin increase, all the historical activities posted strong profitability with excellent operational execution.

A word on the cost control initiatives that we accelerated and intensified in Q2 after the tariff announcement, and I will highlight 2 specific initiatives.

Our SG&A decreased in '25 by EUR 10 million. This is the second year in a row that the group is able to decrease its SG&A and fully absorb inflation, while we decreased our labor cost by 3%, amounting to 17% of revenues.

In the plant activity, OPmobility put in place efficient flexibility in order to adapt to volatile volumes. Looking at each of the business segments, starting by Exterior and Lighting. Exterior & Lighting posted an operating margin of 5.4%. This is an increase of 10 basis points versus last year, with a trend similar to what we have seen in revenues, i.e., exterior posting very solid results, while lighting is impacted by a decrease of sales.

Moving on to Modules. Modules operating margin amounted to 2.7% in '25, an increase of 50 basis points versus '24. I want to highlight that over the past 2 years, the operating margins of module went from 1.6% in '23 to 2.7% in '25, going close to Modules run rate. So module was able to grow, but to grow profitably, thanks to the quality of its order book, operational excellence and as well a strong focus on cost.

Finally, Powertrain increased its operating margin by 30% at 5.5%. Our C-Power activity operating margin continued to be benchmarked and best-in-class, while to a lesser extent, the hydrogen business was also able to improve its results, thanks to a strong focus on cost reduction in order to adapt to the market.

Let's now look at the bottom of the P&L with the net result. As I have stated, EBITDA amounted to more than EUR 1 billion back to its pre-COVID level, 9.8% of sales, almost 1 point increase compared to last year.

Very solid increase in operating margin of EUR 50 million that was able to more than offset the increase in other operating income and expenses. Every year, the group invests 0.8%, 0.9% of its sales in competitiveness.

And looking at the other operating income and expenses for the year, it mostly includes competitiveness action, reorganization, the merger of Exterior and Lighting business group, for instance, and a plant closure in Germany. Financial cost, the cost of debt of the group was down to 4% in 2025. The group was impacted by negative ForEx while our income tax amounted to EUR 79 million, our effective tax rate amounted to 35%. That's 1 point below 2024.

As a result, the group was able to generate very solid net result group share of EUR 185 million, which represents 1.8% of sales. Let's now look at the free cash flow generation. Very strong free cash flow generation. This is a trademark of the group, close to EUR 300 million, up more than 20% versus '24, 2.9% of sales.

Looking at the main components, our gross cash flow, i.e., the cash flow from operations increased by 60 basis points, close to EUR 50 million, mostly coming from the EBITDA. When we launched our cost-saving program in Q2, we also launched an initiative to preserve cash and set the objective of reducing the investments, '24 investment of EUR 0.5 billion by 5% to 10%, and we were able to decrease our investments by prioritizing by 11% at EUR 448 million.

Our WCR remained fairly stable. 2024 was marked by an increase in our factoring programs, while they remain stable in 2025. After distribution of EUR 54 million of dividends to our shareholders and other items, mostly the leasing, our net debt at the end of '25 stood at EUR 1.4 billion, a deleveraging of EUR 167 million.

Let's now move to the financial structure and the debt maturity schedule. I'll start by commenting the leverage. 2022 was the year in which the group completed significant acquisitions in lighting, in electrification, buying out the last 1/3 of what was then HBPO, close to more than EUR 900 million of enterprise value that was put on the table by the group.

And as a result, our leverage increased to 1.9. As Félicie was stating, thanks to a strong financial discipline and cash flow generation at the end of '25, the group leverage stood at a reasonable 1.4x. Looking at the debt maturity over the past 2 years, I remind you that the group has raised EUR 1.1 billion in public bond and private placement in order to restructure and reshuffle its debt maturity schedule.

And as you can see on the right top side of the graph, the group does not have any major debt maturity schedule before 2029 and will be able to absorb at constant perimeter, the maturities of '27 and '28 with its existing resources.

One point on the bond issuance that we did in 2025, EUR 300 million oversubscribed 11x at a very competitive coupon of 4.3%. And finally, our liquidity remained extremely strong, EUR 2.5 billion, increasing by EUR 100 million, compared to '24 with EUR 600 million of cash and EUR 1.9 billion of credit lines with an average maturity of 4 years.

I remind you that neither the debt nor the credit lines do carry any financial covenants in line with the group independence and discipline.

Finally, with debt down and year after year, stronger equity, EUR 2.1 billion at the end of '25, logically, the gearing of the group reduced by 10 points at 66% and by 20 points, compared to the peak of 2022 after the acquisitions. So overall, in 2026, the group can count on a very solid financial structure, reduced debt to pursue its long-term growth objectives. That concludes my 2025 financial highlights. Félicie, Back to you.

Thank you, Olivier. So as you said, very sound and strong balance sheet, which will enable us to maneuver and develop for the years to come. We'll come back to that. But before that, Stephanie will talk to us about the achievement in terms of sustainability.

Thank you, Félicie, and good morning, everyone. If you remember well, in 2021, we set a key ambition to be carbon neutral on Scope 1 and 2. In 2025, we are carbon neutral on Scope 1 and 2 at group level, meaning including our lighting activities we just acquired 3 years ago. So it's a great achievement by the group.

How do we succeed in achieving this carbon neutrality? First, by reducing our energy consumption. We have improved our energy efficiency by plus 19%, compared to 2019, which is the year of reference.

Second, we have increased the share of renewable energy with close to 40 sites that are equipped with solar panels and wind turbines. And we have bought some power purchasing agreement to reach that level.

So we are very proud of this achievement in 2025. We have also achieved a strong momentum on our Scope 3 upstream and downstream. Our energy consumption on Scope 3 have reduced by 37%, compared to 2019, which is also the year of reference, which is totally in line with the objective we have by 2030 of reaching minus 30%. So we will continue, of course, to maintain our action on those -- that scope in order to maintain that level while the activity will continue to progress in the year to come.

And at the end, we are still committed to reach and to be net zero in 2050. Moving to the ESG ratings and the significant progress we made in safety. You know that safety is really key in the company.

OPmobility stands as among the best and the leaders in its industry, as you can see on the left of the slide, with for the third consecutive year, the A rating by the CDP Climate as well as the B rating for the CDP Water, which is really a remarkable achievement.

The other ESG agencies also consider OPmobility as a leader in its industry with a B- compared to a C+ before with -- sorry, ESG rating. It is a prime status, which is only given to only 10% of the total companies. And we maintain our AA rating in MSCI.

Looking at the right of the slide on safety, which is very key for the company. We -- so the FR2, which is the frequency rate -- the accident frequency rate we measure every year reached a record level at 0.43, totally and better than the target we had for this year at 0.5.

What does it mean? It means that more than 80% of our sites published 0 accident in 2025. We are benchmark in the automotive industry.

And not only obviously, it is important for our people, but it's definitely also a level of performance -- that's why we are really very cautious and focusing on that KPI.

Now moving to some strategic highlights, which I will explain with Stephanie, back to our strategy that is based on 4 pillars. I'll come back quickly. So first one, the technical -- technological leadership and diversification, which we engaged with those acquisitions already in 2022. And also, we launched at the beginning of 2025, the One4you integrated product, and I'll come back to that with some significant milestone that we have reached again in the year. The geographical diversification.

I mentioned it earlier, 2/3 of our orders last year were to capture growth outside Europe, and we'll keep on doing that. 2025 was very much North American oriented and we'll push forward with Asia. And in terms of customer portfolio, the -- I would say, the market is pretty shaky in terms of dynamics, customer dynamics.

We saw newcomers taking quite a big share of the growth and some others repositioning. So we are adapting to that new reality and making sure that we adapt our own customer portfolio to this dynamic.

And finally, expanding beyond automotive, yes, historically, the passenger car market has been our home market. But we want -- we are pushing to expand beyond automotive that is, for sure, smaller in terms of volume, but where we believe we can grow faster in terms of value content. You know we have 2 big segments now in terms of product portfolio. The first one, which are the exterior solution. Back to my comments on the one for you, where we believe we can provide some more disruptive products and module to our customers depending on the level of integration.

And as I said earlier, we launched that back early 2025, and we got 10 significant awards, which has been quite effective first year of rolling out this product offer. And we secured those programs in the 3 regions. You have -- we have one that is pretty important that we have secured with one of our historic European customer, which SOP will be in 2028, and that will enable us to mobilize our footprint in Spain and in Morocco on all the 3 products of bumpers, lighting and the integration of that.

You know it brings weight saving. It increased our content per car. It provides the OEM the flexibility to come up with some more original and innovative design.

And obviously, the integration of that enables us to be more efficient in terms of developing the product. So we will keep on pushing this product line, which we believe has strong potential. On the Powertrain, which is the other segment, we are capable of supplying all products, so fuel tank, battery pack and hydrogen.

Fuel system, we keep on pushing our last month standing strategy, consolidating the market. We have 23% of the market and still aiming by 2030 to have 30%. And obviously, the slowdown of electrification will impact positively the length of the development of this activity. We are also benefiting from the increasing demand on the PHEV EREV segment, where we believe we can grow from 9% to 15% on this market.

And we took 10% of our order intake for those solutions. Battery pack, we announced that last week, we have won a major award for a European OEM in the U.S., and we will supply 1 million units over the time -- lifetime of the contract.

And this is a key milestone that is confirming the relevance of the acquisition that we've made in 2022 of ACTIA Power, which was more on the heavy-duty market, but now shifting to the passenger car.

Finally, hydrogen, we have a pretty unique portfolio in terms of certified vessel, compared to what is available on the market. We have capacities in place. We are acknowledging the delay of the market and focusing -- refocusing all of the efforts on Asia, where the market is definitely shifting and where we have secured the new orders, but also to serve the European market from there.

So moving to the second pillar, which is a geographical pillar. As previously mentioned, so starting with Europe, which is our main market today, we would like definitely to consolidate our leading position there.

We can rely on a solid industrial footprint and the leadership of our historical businesses within this region. We would like, of course, thanks to this assets to accelerate with notably the Chinese OEM that are coming into Europe, and I will come back on that later on.

So we are fully in line with that strategy. We are also -- we would like to rebalance, of course, our geographical footprint. That's the reason why we had in 2025, a strong focus on North America. I remind you that the U.S. is the first market for the group. It's been now 2 years.

We have inaugurated a new headquarter gathering all the business groups in Troy. It was end of 2025. So it means that we are fully committed to accelerate in this region. Our ambition in the U.S. remain the same, meaning that we want to double the sales by 2030, with, of course, leveraging on our existing footprint, but also we will gain new, of course, awards supporting the OEMs that would like to expand in the U.S. in the context of the tariffs.

Moving to Asia, where we have strong, of course, ambition and 2026 will be a year with a strong focus in Asia, starting with China. So China, today, we have a strong positioning, thanks to our YFPO, our JV with Yanfeng that belongs to the SAIC Group. It's a leading position in the exterior parts with YFPO equipping 1 car out of 5 in China with exterior parts, so meaning bumpers and tailgates.

We want to, of course, go a little bit further. And that's the reason why we have announced end of 2025 that we have the ambition to expand the activities of YFPO to module and decorative lighting. It will, of course, let us grow in this market and accelerate our exposure to the Chinese OEM.

Today, the Chinese OEM in China represent roughly 40% of our revenue and 2/3 of our order intake. So we are very well positioned to accelerate in China.

Last but not least, I will make a focus on India. India, where the group operates for many years now, we have 5 operational plants. The last one we inaugurated end of 2025, which is quite unique in the market because it gathers the exterior activity as well as the C-Power activity. We have strong ambition there also to more than double the sales in India. And to help that, we have a sixth plant that is under construction for the C-Power in Kharkhoda.

So you know we are expanding in all the markets, consolidating in Europe and have strong ambition both in America and in Asia. I was mentioning the expansion of the YFPO JV we had. So we announced end of 2025 that we will expand this JV.

We can -- we expect to finalize the deal before the summer this year. So you will have the first impact in 2026, in H2 2026.

So it will definitely strengthen our presence in China, where the group already have 10% of its revenue today, but it should increase in the coming years. Moving to the third pillar of our strategy, which is our portfolio and expansion of our portfolio in all our mobilities.

So you can see on the slide the top 10 customers we have on the left. So you already known them, but we are expanding with them as well as with the winning customers that you can see in India, but also in China. And you know that the group is, of course, focusing on accelerating beyond automotive in railway, in self-driving, in off-road mobility. Just a quick focus on our expansion and supporting the Chinese OEM in their international expansion. You know that we have signed a contract with Chery to -- of course, to support them in their expansion, both in Spain and in Brazil.

So it's clearly the intention of the group to be -- to work with the Chinese OEM in China, but also outside China. And you can see on the slide that we have signed other awards with other Chinese OEMs, both in Spain and in Malaysia. So we are definitely supporting them with the Chinese OEM in China and outside China.

Thank you, Stephanie. A quick update on some of the key priorities we have engaged and we -- that we are active on. We announced early Jan, the signature of MoU to potentially acquire the lighting activity of the Hyundai Mobis company. The MoU is in place. We are hoping to have a signing by mid of the year and potential closing of the transaction by end of the year. This move -- this transaction will be significant because it fits to our strategy.

It's addressing 1 of the leading OEM, which today only represents 5% of our sales. It's in Asia, and it will accelerate the development of our lighting activity, which we never hide that we were first focusing on the organic growth, but also looking at some potential addition when it would make sense.

And we believe here clearly, this deal would make sense to develop and grow our lighting business to the next level. We are also focusing on innovation. I won't come back on the CES. We are having many different type of initiative. And I think what is also important is that we are -- the AI, obviously, is a hot topic, and most importantly now with -- and shaking a lot of the financial markets, but we are looking at opportunities that we can embark either on processes or on products that can help us to either propose something different to the customer, which is the case of AIRY, which is a 3D printed carbon fiber battery pack that we are proposing and developing with the startups or -- and I'll come back to that, which is 1 of the key initiatives, how to be faster in terms of simulation, which is Neural Concept projects that is ongoing.

And that makes a good transition with what will be key for us this year. It's improving again our competitiveness, but engaging in medium, long-term initiative to have a sustainable competitiveness. Here, you have 3 initiatives, among others, that we have. The first one, which is how to be more efficient in terms of development and R&D costs.

We want to reduce our hours by 30%. And that goes, obviously by decreasing the hourly rate and expanding our footprint in best cost countries. We are also repositioning the organization on back -- some back-office topics like HR, digital NIS and finance. And we have today 5 hubs in best cost countries again. We are -- we have materialized 500 people so far, which is 2/3 of our ambition on this specific topic.

And again, on the supply chain, we have launched a new tool that should help us to decrease our transportation cost by 10%. We have launched that in Mexico, and that should be rolled out throughout the group. We also have some other automation initiatives. We would like to have more JVs and improve the level of automation of our plants.

All of that our transversal approach as we want to have benchmark practices that can be deployed throughout all BGs. So strong push on that for 2026. Based on the results of 2025, we will propose to the next general assembly in April '26, a dividend per share of EUR 0.45, which is -- EUR 0.49, sorry, which is -- which represents 37.7% in terms of payout, which is again an increase versus 2023. 2024 was an exceptional year, given there was a an interim dividend that was made.

In terms of outlook and perspective, I mean I won't come back on all the strategy, but it remains the same. And we believe that we have the good model to be able to project ourselves again in improving all the KPIs for 2026 on the operating margin and the net result on the free cash flow and on the net debt.

So I would conclude this presentation before taking your questions by saying again that we have a very solid and robust [ 2024 ] year with very strong financial metrics, again, accelerating on all the front of our strategy, and we believe we are well positioned to really address the challenges of the market. 2026 will be a transition year in many aspects. It's not going to be -- the market is projected to be flat, to be stable. But still, in that context, we believe we can deliver a solid performance again in 2026.

Thank you very much and happy to take questions. First question.

It's Thomas Besson with Kepler Cheuvreux. I have a lot of questions, as usual. I'll start with the easy one, financial questions. First, can you comment on the diverging trends for Powertrain and the Exterior & Lighting margin trend in H2. So Exterior & Lighting actually was strong and improving, Powertrain was weaker. Can you explain why the seasonality is this way for these 2 businesses and whether there was anything affecting them differently in the second half?

Thank you, Thomas, for the question. There was no significant deviation in profitability between H1 and H2, both Exterior and C-Power posted very solid profitability, both in H1 and H2. And in H1, we did EUR 260 million of operating margin. In H2, we did EUR 230 million operating margin with slightly lower sales in H2.

Usual seasonality.

There's no trend of having margin reduced any of the 2 businesses.

Can you give us some indications about CapEx trends in '26? I mean you've cut CapEx by 11%. So a lot less in H2 than H1. Should we assume a CapEx ratio above 4.5% -- between 4.5% and 5% or an absolute level of CapEx that goes up a bit in '26 to prepare growth ahead or...

I'll continue on the financial questions. Like you said, '25, we reduced CapEx to 4.4% of sales. We have a capital allocation framework that we discussed already in which CapEx are around 5%. And this will be the level that we will reach in 2026, but we will still improve free cash flow.

I'll move to more general question. I mean, I noticed that you refrained like last year to guide for higher revenues. And I'd like you to discuss, if possible, the organic revenue dynamic for the group in 2026, what we should expect by division, by region, by clients, at least a general qualitative comment.

Could you, in particular, put a focus on what we should expect in the U.S. and India as you're aiming for very substantial growth to 2030? Is it something that starts in 2026 or that we should expect more in '27 and beyond? And then one specific project I'd like you to say something about even if I think it's difficult, it's the robotaxi project. I think it just started...

In 2 months.

In 2 months, it's just starting. So remind us your exposure to that. I have one more after that?

On the revenues, 2026 will be stable versus 2025 in terms of sales. The market dynamic for 2026 is what it is stable with the big difference versus 2025 being the Chinese market that will be significantly down.

Obviously, there are some different plus and minuses within each BG. But all in all, you should consider that sales will be stable. In terms of -- by the rebound and all of the -- I would say, the deployment of the order intake that we have embarked should more start impacting 2027.

But we, obviously, within HBGs, namely the module activity will show some significant growth with topics like the robotaxi that will kick in, in 2 months' time. On that, there are a lot of different assumptions, obviously, some are more bullish than others. Our customer is pretty positive about the development of the sales and we are too. Anyway, we are engaged in such a relationship that we'll find ways to adapt. And we are showing flexibility obviously to adapt the change in volumes. But it's an important lever for them to grow in the years to come.

And you're highly exposed to that product as well in terms of revenue per cap?

In the U.S., yes.

Last question on lighting. So 2 aspects about this question. Can you give us an idea of the magnitude of the revenues in 2025 and how they developed organically and the level of operating loss in '25 versus '24 and whether we should expect this business to grow organically in '26 and reach breakeven in '26. The first part of that question on lighting. And the second part is about the business you're looking at. Can you share with us some details -- financial details about the Hyundai Mobis activities?

You're talking about taking a controlling stake. Would that mean you'd have a JV with Hyundai Mobis? And can you just give us an idea of the magnitude of the financial implication for OP and whether this is something you can finance organically with the existing liquidity or the share count would not be affected by this transaction?

So on the lighting -- so on this project, so in terms of sales, it's EUR 1 billion plus. It's 5 plants, 2 in Korea, 1 in China 1 in Mexico and 1 in Czech Republic, which will be a good complementarity footprint with ours. It's a profitable business, so having a positive impact on our business.

The JV consideration, obviously, it's still ongoing in terms of discussion, but it's an important step for us to develop and build the relationship with this customer because more than 90% of the sales of this business is with the Korean OEM.

So it's, I would say, a positive approach on both sides to make sure that it's a secured transaction, given it's a carve-out that has to be operated by the seller. So it will be a majority stake, still to be defined how much. And given the size of the business and its financial profile, which unfortunately, I cannot detail, but we have the sufficient financial means to do this acquisition without a specific deployment of -- to be done.

On the -- obviously, that together with our lighting business will make it a more sizable or global business. we would more than double our market share with that move. Today, the lighting activity is still suffering. You mentioned the low order intake from the past, but it's not only that, it's the market situation itself.

So we are accumulating, I would say, both burdens. The level of sales is in 2025 lower than what we thought. But we have a lot of SOPs to come this year. So we should have a quite significant improvement in terms of profitability in 2026 that will accelerate in between H1 and H2.

So breakeven in '26 is something credible for these activities organically?

Sorry?

Breakeven for the existing lighting business should be achieved in '26?

We are on the path to improve significantly by the end of this year.

Any other questions?

[Operator Instructions]

The next question comes from Michael Foundoukidis from ODDO BHF.

Michael Foundoukidis from ODDO BHF. Also a couple of questions. I will ask them one by one. So maybe the first one, you highlight in the press release that the full year 2025 margin performance was particularly notable in Q4. So could you explain us a bit in more detail what were the key one-offs versus structural drivers? And how much of that, let's say, Q4 run rate should we consider sustainable into 2026? That's the first question.

Maybe one point and then you can add. Obviously, a lot of -- we mentioned a lot of volatility throughout the year. And obviously, a lot of the topics that we are negotiating throughout the years in terms of compensation happens by the end of the year. So that's one of the reason of this impact in Q4.

Yes. I would say in H2, we did EUR 15 million more operating margin than in H2 2024 and it was a combination of indeed discussion with customers and cost-saving initiatives that we put in place.

Second question, when we look at your launches in 2025, Asia represented more than 50% of the group launches, so of course, it does not tell a clear picture in terms of implied volumes and revenues. But still, what does it mean for 2026 revenues in the region? Should we expect a significant acceleration in Asia and the region growing clearly above, let's say, the 20% threshold of group revenues?

The value per car in Asia is, in general, lower than in the rest of the world. But obviously, the growth will materialize and will start to impact, again, generally speaking, 2026 will be stable, and you should expect the rebound to come afterwards.

And maybe on North America, do you expect trends that we've seen in 2025 to continue into this year, namely outgoing outperformance in the U.S. alongside, let's say, weaker dynamics in Mexico and Canada. And more broadly, how do you see mobility in the context of potential OEM reshoring in the U.S.? And do you believe that your strategic footprint and industrial footprint, of course, would allow you to benefit and is sufficient in this respect?

So yes, we believe that we will continue to entertain a good growth in this market, which is why we are investing in we are projecting our sales to double in the region. And indeed, all of what is happening is impacting the strategy footprint of the customer.

And that's the benefit of having a sizable footprint in the region is that we are able to size some of the new opportunities coming and to rebalance in between our plans should the OEM propose us to localize and need our support. So indeed.

Maybe a follow-up to Thomas' question on the Lighting segment and more generally about the lighting business overall. It seems more competitive than it has been historically with Chinese players also growing in that field, so what's your take on that, both in China and outside of China? And maybe from a product standpoint, do you think that the integrated offer that you again highlighted in the presentation is sufficient to differentiate you versus those peers?

Yes. The lighting business is a much more fragmented business versus the other activities that we have. But we believe that the footprint we have and the technology we have makes us more agile versus some of the big players that have -- that are more anchored in Europe and in more mature markets.

So we can be more agile by delivering from this footprint. And obviously, with this transaction of Hyundai Mobis on the lighting activities that will definitely accelerate this evolution.

So, yes, the technology itself is changing a lot. So finally, being a player entering now with a footprint that we can adapt and being more agile, I think it can make the difference, a difference per se on the product itself, the lighting, but also when it comes to the one for you, where we have very few players to be able to offer the integration of lighting in bigger parts, bigger modules.

And maybe a last question, a couple of follow-ups, more financials. First, on the revenues following your comment that state sales would be relatively stable this year. Is this organic reported, meaning that there's probably FX headwind. So just to be sure on what you meant by that? And second question, would you say that all divisions should again improve their margin performance in 2026 versus 2025.

So on the top line, yes, it's without -- as is scope as is, whatever the -- no foreign exchange nor perimeter. And sorry, the last question was -- the second question was? Improvement of all -- the performance of all BGs, yes.

Okay. And congrats again for this performance.

The next question comes from Ross MacDonald from Citi.

It's Ross MacDonald at Citi. I think only few remaining questions from my side. On the financials, firstly, can you maybe talk about the tax rate in 2026? Should we expect that to be stable at 35%.

Yes. Tax rate should remain stable at 35% in '26. We aim to improve it a little bit, but it should stay within this ballpark.

Understood. And then secondly, on the free cash flow. Some of your peers in '25 benefited from some working capital release. Obviously, that hasn't been the case at OPmobility. But for 2026 free cash flow generation, you've touched on the investment spend.

Obviously, the operating performance should be a small tailwind to free cash flow. But how should we think about working capital in 2026, should we expect no further benefits or tailwinds from working capital release this year?

As you say, we'll increase the investments. And since we plan to increase our free cash flow, it will be financed by both an increase in operations, i.e., the gross cash flow and an improvement in WCR, notably inventory management and payment terms on which we have a dedicated initiative.

That's clear. And then 2 slightly more strategic questions. Firstly, on the fuel tank market share, good to see that moving up by 23% now. I think it was 21% at the CMD in 2022. So obviously, at the current pace of share gains slightly below the 30% target, can you maybe talk around when these market share gains in C-Power will accelerate? Is that really quite back-end loaded in this decade or -- should we see that accelerate maybe in 2026?

Yes. So yes, you're correct, Ross. The market share in C-Power has increased from 21% to 23% in 2025. We were in 22% last year. So it's -- we are really on track with the target we have of 30% by 2030. If you look at the mix, geographical mix, we'll continue to accelerate in North America, especially, so we'll have a different mix between regions.

So it will also participate to the increase in the market share we have. And we consolidate in a market, where players -- some players are decreasing, even disappearing. So we are still consolidating our position in this market, and it will continue to reach the level of 30% of market share by 2030.

And then moving to the beyond automotive comments, quite interesting, a number of suppliers talking about looking beyond light vehicle production into some commercial vehicle, et cetera, end markets. Can you maybe speak to whether that opportunity is specific to 1 division or if there's a division within the group that lends itself best to growth beyond automotive? And really interesting if you can maybe give some midterm aspirations around revenue contribution from those activities?

Yes. Today, the beyond automotive only represent of our sales, and it's pretty much focused on what is linked to the electrification, i.e., the battery packs and H2 activity, who are addressing the heavy mobility with trucks, buses and small fleets, and that we will keep on growing. But we are also -- I mean when we think about beyond automotive, coming back to the question on the robotaxi, we do see a lot of movement on this market. and that we believe will grow in the future. There is 1 player with whom we are today engaged, but we are also in discussion with others. So we believe that should be part of what we call also the beyond automotive because the business model there will be pretty different from our conventional market, I would say.

Final question. I appreciate you can't give the numbers on the balance sheet impact from the M&A you announced recently with Hyundai Mobis. Can you maybe reassure investors just given that the last acquisition in lighting, obviously, you had some execution headaches around the order bank. How should we think about the order bank in that business? And would it be fair to assume that there should be much more stable instant contribution to revenues without that sort of decline that we saw with Varroc?

I mean the situation is totally -- it's not comparable. Back in the days, I mean, the first acquisition we've made clearly the situation in which the business was very different. It was a depressed business. Now what we are considering here is a very sizable business with 1 leading OEM. More than 90% of its sales engaged with that. And back to the JV topic, it's about how to further engage and set a stable relationship with that customer and also use that as a lever to grow beyond lighting with that customer. So those are very different -- 2 very different objects.

That's very clear. Maybe if I can sneak one quick final one in. Obviously, the dividend has come down, I understand why, given the very high starting point. With this M&A objective, how do you think about the dividend going forward? Is the objective to hold it at least at the current level going forward?

Sorry, can you repeat? The sound is not very good.

Apologies. It was just on the dividend. Obviously, given the balance sheet impacts from this deal, how should we think about the dividend going forward? Would your objective or mission be to try and defend this EUR 0.49 dividend in 2026.

I mean, irrespective of our strategy, we always have a policy of serving dividend to the shareholders. So that should remain the case.

The next question comes from Jose Asumendi from JPMorgan.

Just a couple of questions, please. Can you talk about the opportunities to grow with Chinese OEMs in Europe, provide more content with new contracts or LatAm or any region that you consider appropriate to comment.

Second, can you provide a bit more color regards to the lighting division? And where do you see the growth coming from in 2026. If you could just provide a bit more details by region or by customer. It looks like you've done the cost cutting necessary to reposition the business model, but growth is to drive the margins going forward?

And then final one, are you expecting to benefit from growth in the U.S. And I'm particularly focused on Stellantis where production is going to be up quite sharply in Q1 and first half 2026. Do you have your strong content with Stellantis and And do you see that also as a benefit in the first half of the year?

So I think your first question was on the Chinese OEM outside China. Indeed, we are really leveraging the relationship and the footprint that we have in China to accompany them whenever they want in Europe. So we have a lot of interaction and also because China now is clearly on the innovation side, investing for China but for elsewhere. So we really focus on growing the relationship beyond our YFPO JV, also in the other product lines to be able to serve them elsewhere.

Today, I think part of the challenge is that Europe has not yet defined its strategy in terms of the tariffs and the local content. So there are still some OEMs that are wondering whether they will invest. But logically, we should be there where they want to invest at some point.

For sure, whether it will be Western Europe or Eastern Europe, we have the footprint right there to support them. On the lighting activity, as we commented, unfortunately, 2025 was a low point in terms of sales. But we've been now for 3 years in a row and again, we will have a sizable order intake in the lighting activity. So that order intake will start to materialize and the SOPs are ramping up this year.

And back to your point of your question on Stellantis, we actually have quite strong activity with them in the lighting and in North America in general. And also on the different One4you topics that we discussed earlier.

There are no more questions. I will now hand the conference back to the speakers for the closing comments.

Thank you very much for your time. It was a long session, but it was our pleasure to present to you those solid results and looking forward to the next meeting. Thank you.

Welcome to the OPmobility Q3 2025 Revenue Presentation. [Operator Instructions]

Now I will hand the conference over to our speakers, Laurent Favre, Chief Executive Officer; and Stéphanie Laval, VP, Investor Relations. Please go ahead.

Good morning, everybody. Nice to connect with you for our Q3 revenue presentation. I hope you have the presentation in front of you. And I will comment it together with Stéphanie Laval, our VP, Investor Relations.

If we start with the first slide, in the first slide is to take a step back again regarding the market. The market was, again in Q3, like since the beginning of the year, pretty complex, but we have been able to navigate in this complex market like in the first semester, thanks to our key assets, thanks as well to our diversification strategy.

If we start with the tariff, you know that the tariffs are changing, are evolving. They are different by region, but also by OEM. For OP, the impact of the tariff is very limited. First of all, because we do produce where we sell. We don't have cross-border businesses between the region. And second, we have put in place in the first semester, pretty strict cost management and investment management. That is something we did carry on as well in Q3. Therefore, tariff impact is very limited for us.

Q3, in terms of production, was mainly driven by Asia, China and also North Korea -- North America, sorry. And you know that one part -- one aspect, one pillar of our strategy to continue to grow in this complex market is to diversify our geographies and to diversify our geographies with the main focus, America and Asia, and that is -- these are the regions where we did outperform the market in Q3 pretty massively. And these are also the regions where we have a very important part of our order intake last year, but also again this year.

Third topic is about the shutdowns in Europe just because it was summer, but also because there were some issues. One customer of us was facing, for example, cyber attack, as you may know that. But I'd like to say that it is part of our daily life since a couple of years, and we have been able, again, to adapt because we have a very flexible cost structure and very good intimacy with our customer to find the right approach to compensate those volumes.

And last but not least, EV is still, for sure, growing worldwide. EV still depends on subsidies like for example, in the U.S., but also in some countries in Europe. Therefore, there are some ups and downs. We want to remind you that 75% of our revenue is agnostic to Powertrain. Therefore, no impact for OPmobility. But also to remind you that we have a very important part of our revenue with C-Power, and C-Power is performing very well in terms of volumes, in terms of revenue, as you could see in the Q3 report.

On the next slide, it's a kind of summary and the highlights of OPmobility in Q3. First of all, we are growing in organic revenue like-for-like compared to Q3 2024 with 2.6% higher economic sales compared to last year, which is a very strong performance. We are growing, especially in North America and in Asia, where we outperformed massively the market. I want to highlight here that North America is one of the growth engines of the company and in North America today, by the way.

That in China, we are perfectly in line with the market in terms of outperformance, meaning that we are growing by more than 9% compared to last year. That is the case for our traditional business like Exterior, but also for C-Power, our fuel tank because we are developing more and more the activity for the hybrid vehicles in China. And rest of Asia, strong growth as well in India, where we did open a new factory, and we'll come back to that, but also in North Korea with our joint venture, SHB.

Also in Q3, we did accelerate our development in India. India is a key country for us. We will have a slide on that later on. And we were there a couple of weeks ago to open our fifth factory in India, knowing that the sixth one is under construction and will be inaugurated next year.

Therefore, based on the very strong performance of the company in the first semester, based also on the dynamic turnover in Q3 this year. We are very confident to confirm our outlook 2025, which is about improving our key KPIs, sorry, for the financial performance of the company, meaning the operating margin, the free cash flow, the net result, but also to continue to deleverage the company.

I hand over now to Stéphanie, and Stéphanie will come back with more details to the revenue by region to the main topics, but also to our performance in Q3.

Thank you, Laurent, and good morning, everyone. If you look at the geographical split for Q3 2025 revenue, our activity outside Europe, so mainly in North America and Asia, represent 54% of our total revenue in Q3 this year compared to 52% same period last year. This supports our strategy of a more balanced geographical activity.

Let's now deep dive into the performance per region. Starting with North America, where the group generated more than 30% of revenue in Q3. The performance was really outstanding with an organic growth of plus 9%, while the market is only up by plus 5.8%. In this region, the performance was especially impressive in the U.S., where OPmobility revenue grew by plus 12.1% like-for-like. C-Power posted a very strong momentum and Exterior benefited also from strong growth. Therefore, the United States remains the top country contributing to OPmobility's revenue and is key for the development of the group.

In Mexico and Canada, the group also posted stronger growth than the automotive production. I remind you that in H1, the performance in those 2 countries was impacted by production stoppages from one of our main customers for several weeks. It was not the case anymore in Q3.

Moving to Europe. OPmobility revenue was down minus 5.3% like-for-like. Traditionally, Q3 is the lowest quarter of the year because of the seasonality of the activities in this region due to summer break. This year, the performance in Q3 experienced extended shutdowns of OEM plants, notably for Modules. On the contrary, Exterior posted strong momentum in Europe, which I will detail later.

If we now focus on Asia, which accounts for close to 20% of the group's revenue with China contributing to 9%. Revenue in the Asian region rose by plus 15.9% like-for-like, significantly outperforming automotive production by plus 9.8 points, with different trends across countries. This outperformance is driven by the continued strong growth in Asia, excluding China, up plus 22.2% like-for-like, strongly outperforming automotive production by plus 21 points. It is in line with the positive trend we already observed in Q1 and in Q2 this year.

Moreover, the revenue grew also significantly in China, in line with the global market dynamics. In China, YFPO benefited from its leading position in Exterior parts, and an increasing number of contracts signed with local players. C-Power maintained a stable level of revenue in this country, thanks to the ramp-up of PHEV vehicles, and new contracts signed that are already starting production to address this technology.

Now if you look -- if we look at Q3 economic revenue, OPmobility posted solid revenue growth of plus 2.6% like-for-like in Q3. The strong performance of the group includes an FX impact of minus EUR 95 million, mainly due to the depreciation of the U.S. dollar. FX impact should continue in Q4.

Looking at each segment. First, the Exterior & Lighting segment posted an economic revenue up plus 4.2% like-for-like or plus EUR 50 million in Q3. Exterior continues its solid dynamic. Lighting remains impacted by the lower order book previous its acquisition, but to a lesser extent compared to Q1 and Q2 this year.

Modules economic revenue is down only minus 1.7% like-for-like in Q3, linked to longer seasonal shutdowns of OEM plants than last year in Europe, mainly related to German OEMs.

Moving to Powertrain. Economic revenue is up by plus EUR 32 million, meaning plus 5.4% like-for-like. The Fuel Systems activity continues to strengthen its leading position with a solid increase in sales. Battery pack activity is also progressing, with a gradual ramp-up in line with the group's energy transition strategy.

Before going into details of each activity, let me highlight that on a consolidated basis, excluding FX impact and GLR exceptional impact, our consolidated revenue in Q3 this year is progressing compared to Q3 last year.

Let's now move on the Q3 business highlights by segment. Looking at Exterior and starting with Asia. In this region, China is the biggest contributor on Exterior revenue. Through YFPO, the joint venture with Yanfeng, our Q3 exterior revenue in China benefited from the ramp-up in activity with major Chinese players. To illustrate, we have started to produce bumpers for the Model H5 for Huawei and benefited from the ramp-up in volumes on tailgates for Luxeed, the automotive brand created jointly by Huawei and Chery.

In India, where Exterior also accelerates, we maintained a strong momentum in this country. As an example, we registered a key award for Mahindra for which we will produce bumpers for 3 different vehicles. And Laurent will come back on our strong ambition in this country later in the presentation.

Moving to North America. The activity is robust. In Q3, we benefited notably from several renewals of contracts already in production for General Motors like Cadillac in the U.S. and Mexico and also Chevrolet in Mexico.

In Europe, the activity for Exterior in September was impacted by production stoppage from one of our customers. The good news is that the production has already restarted, and OPmobility is fully supporting the progressive ramp-up of volumes.

Exterior posted strong momentum notably in Slovakia, with the ramp-up of the platform Smart Car for Stellantis. And we also have started to produce Exterior parts for Renault for the Alpine 390 in France and for the new Clio in Turkey.

Last but not least, we will provide bumpers to Chery from both Spain and Brazil for different models, reinforcing our relationship with this Chinese OEM, as Laurent will explain more in details in a few minutes.

Moving to Lighting. For this activity, the stabilization of the revenue is in progress, as mentioned before. The group continues to register new orders for Lighting. And as you can see on the right-hand side of the slide, we will produce front and rear lamps and also signal lamps for Renault Boreal in Turkey. The launches planned in the coming months are securing the future growth of this activity.

Moving to Modules. Starting with Asia, Modules continues to record sustained growth in South Korea, notably with our joint venture, SHB. We have started to produce in Q3, front-end modules, front-end carriers and also active grille shutters for the Van PV5 of Kia in South Korea with SHB. The business group also secured a contract to produce cooling modules for different vehicles for BMW in Malaysia.

Going to North America, at the Austin plant in the U.S., OPmobility continues to benefit from volumes ramp up to assemble front end modules, cockpit and cooling modules for a new model launched beginning of 2025 for a major U.S. EV player. Over the first 9 months of 2025, Modules still posted growth of plus 5.7% like-for-like compared to the same period in 2024.

Moving now to the Powertrain segment, which provides technical solutions for all types of powertrains from fuel systems to battery packs and hydrogen mobility. First, fuel systems activity continues to consolidate its leading position, thanks to a sustained demand for this technology. In particular, C-Power has a very solid fuel systems activity in the U.S. in Q3, notably for Stellantis. The volumes of fuel systems are also increasing in Asia, and notably in Thailand in Q3.

We are also reinforcing our order intake with Chinese OEMs, notably on PHEV like the award we obtained with BYD for the model Yuan UP model. Moreover, in China, we have started the production of fuel systems for Geely for various vehicles like the Z10 and the Smart #5. Globally, the strong order book we have for the fuel systems activity is making us confident to continue to consolidate the market.

The battery pack activity is also expanding. At the beginning of September, we have entered into a long-term partnership with HESS, a Swiss leading manufacturer of buses to supply several hundred battery packs over the next few years. The first buses equipped with battery packs from OPmobility are already on the road in France, Switzerland and Italy, and you can see a picture on the slide.

Concerning hydrogen mobility, H2-Power continues to have developments in progress, mainly for heavy and collective mobility. We are also working with OEMs that are investing in hydrogen mobility for passenger cars like BMW, Toyota and Hyundai. H2-Power benefits from key assets fully operational, all the main standard vessels are certified and industrial capacities are in production in France, South Korea and China. All our capacities are now set up without any further industrial investment needed in the coming years.

I'll now turn to Laurent who will focus on recent strategic moves.

Thank you very much, Stéphanie. And now let's talk about some topics we wanted to highlight today to show the dynamic of the group. Again, in a complex market environment, we are moving forward.

First of all, we wanted to talk about India. You noticed that we did celebrate a couple of weeks ago. The inauguration of a new factory, that is the factory #5 in India. The group started its journey in India in 2007, meaning 18 years ago. We have now 5 factories in India. We are #1 in terms of C-Power activity, fuel tank, mainly thanks to a joint venture with Maruti Suzuki.

And as you may know, Maruti Suzuki owns 40% to 45% of the market, but we are also developing a lot of Exterior business group. And these 2 factories close to Pune is for Exterior, a big part, but also for C-Power to serve mainly Mahindra for Exterior parts and Hyundai for C-Power.

We have a very strong ambition in India. We do equip already 1 car out of 3 in the global market. You know that India is already the market #3 in the world in terms of volumes with more than 5 million cars being produced this year, but also that the market will continue to grow in the coming years for the local demand, but also for export. And these are the reasons why we are strongly committed to India, and we are committed to grow at least to double our turnover until the end of the decade, and potentially to triple the turnover until the end of the decade in India.

That means we are going to open at least one plant a year in India in the coming years. That is the case this year with this new factory I was mentioning, but that will be the case also next year with a new factory, which we are building right now and which will start to operate at the beginning of 2026.

Therefore, again, fully in line with our strategy to diversify our geographies. We have been talking a lot about the U.S. and North America in the recent times, for sure about China. But India is for OPmobility, a very strong market. You know that in India, 4 carmakers are having 75% of this market and these are our customers as well. Therefore, we are very confident in our capacity to continue to develop our sales massively in India in the coming years.

India is not only about production, that is also about engineering. We have now 4 R&D centers in India. We are also doubling the capacity for R&D centers in India until the end of the decade to benefit from the competitiveness of India in terms of skills, but also in terms of cost and to be able to reduce in the coming years massively our project cost and our project investment. Therefore, fantastic news for us, this new factory in India, and we are moving forward, and there will be another one next year, that will be the case in the coming years each year with a new factory.

Now if we move to Chery, what Stéphanie highlighted, we wanted to take a step back on the Chery situation because it does demonstrate our capacity, not only to develop our business in China with the Chinese OEMs, but also to support the Chinese OEMs globally in their global strategy. Chery is a customer of us already in China for exterior parts for our joint venture, YFPO. And we booked 2 important orders in the last months, one in Brazil, where we have a factory in Taubaté, not far away from the one-off Chery, about 50 kilometers, but also a bigger one in Spain, in Barcelona. And you know that we have a very strong position in Exterior in Spain.

And some of you were with us in Spain a couple of weeks ago. And we will be the supplier of Chery out of our existing factory in Barcelona for all the exterior parts for their new vehicles they will produce in Spain starting in the coming months. They were exporting in the past. Chery is the biggest Chinese OEMs in terms of export, and they will now produce locally in Spain, starting with around 60,000 cars a year, but also -- but later on improving up to 100,000 cars a year and potentially more in the years to come. Therefore, very, very good news for us.

We have been also able to sign a contract with Chery about long-term partnership. That is based again about on the track record I was mentioning, meaning a long relationship in China, those 2 factories. And now it's about a partnership for the future, meaning to be engaged in all redevelopment of Chery in the very early phase to work with us with them on all our offerings. It can be the one for you for Exterior Solution integrated.

It can be also the fuel tanks, for diverse technologies like PHEV, our range extender, and meaning that we are reinforcing our collaboration with Chery, and we are very confident in our capacity to grow the business with them and to support them in their international strategy.

Second topic, I want to -- we wanted to highlight. I mean, we want to highlight many topics. But first of all, it's financial achievements at the end of July, beginning of August. The company -- the group confirms once again a very solid and sound financial structure, which is, again, highlighted by our last financing operation. We issued a EUR 300 million bond beginning of August 2025 due 2031 with a coupon of 4.3%, which is very competitive, as you know, compared to the market and to our peers.

The bonds obtained credit rating of BB+ by S&P Global Ratings, which is consistent with the public rating of OPmobility. Again, that shows the strong investors' confidence and that enables OPmobility to reinforce in its balance sheet for the future.

What is important for you to notice is we are fully refinanced for 2025. We don't have major refinancing before 2028. That means we have time in front of us. And more important, we don't have any covenant. You know that it is something which is specific for OPmobility. No covenant on all our financing, which means for us, we have a very good long-term visibility and flexibility because of the reserve we have for the coming years.

The next one we wanted to highlight is that we do continue to develop ourselves to improve in terms of ESG. You may know that 2025 will be the year of carbon neutrality for OPmobility for the Scope 1 and 2. That means in all our factories, which is kind of unique. And we continue to invest for that because, first of all, we are convinced it makes sense, but also we are convinced it will be a very important competitive advantage in the coming years.

By the way, the new factory in India is having solar panel on the roof, but also using the solar farm close to the factory, which means that 90% of the energy will come from those solar energy in India as well, and that is very competitive in terms of cost and also very beneficial for the planet.

What did happen as well in Q3 is that we have been able to improve our rating by ISS, as you can see here, to be upgraded from C+ in the past to B-, that means here again for ISS, but also for the CDP and all other KPIs like EcoVadis, we are in the top of the industry, and we will continue to improve our performance at all level, which is concerning sustainability and our very ambitious ESG policy.

Now looking forward, meaning the outlook and then the conclusion before handing over to you for the Q&A session. For the outlook 2025, I mean, we rely on our very good results from the first semester. You remember, we rely on a very dynamic Q3 sales we have been commenting, but also on all the successes we had in Q3 in terms of commercial activities, order intake and so on.

Therefore, we are very confident to achieve our targets for this year, commitments for this year, and the commitments for this year is about improving the operating margin compared to 2024, improve as well the debt reserve compared to 2024, but also, for sure, the free cash flow, which is a strong asset of OPmobility, as you know, and to reduce massively the debt compared to 2024. Therefore, very confident in our capacity to deliver those commitments at the end of 2025.

Conclusion. You noticed that we are accelerating our transformation in terms of geographies with the Q3 sales showing that Asia and North America are gaining in terms of importance, but also in terms of technology with the battery system, for example, Stéphanie did mention before on the customer diversification fully in line with our strategy.

We have a very solid order intake year-to-date, and we will have an order intake at the end of the year, which will be massively higher than our sales, showing again our capacity to grow in the coming years. Very happy to diversify as well, again, in geographies with this new factory in India I was mentioning before with a very strong position in this growing market, giving us a lot of opportunities for the coming years, again, showing our capacity as well to develop Chinese customers also outside of China with this fantastic partnership with Chery and the track record as well.

Our financial profile is even stronger than at the end of H1 with this new bond of EUR 300 million. And therefore, we are very, very confident in our capacity to achieve our 2025 objectives. And I want to use the opportunity to thank the great OPmobility team, having delivered again a very strong performance in Q3.

Now that's the time for the Q&A, and I hand over to you for the discussion.

[Operator Instructions] The next question comes from Thomas Besson from Kepler Cheuvreux.

It's Thomas from Kepler Cheuvreux. I have a few questions. If that's okay, I'll ask them one by one. I'd like to start with India, please. You're talking about doubling or tripling your revenues by 2030, but we have no indication about the base. Could you give us just an idea of what your revenues are in '24 or '25, either as a proportion of your consolidated revenues or as an absolute figure, please?

Yes, we can because saying that we doubled without mentioning what is the base. It's not easy for you. Now it's about EUR 200 million this year in India. And our target is to double, be secured and potentially to triple this number until the end of the decade.

We are in terms of global Tier 1, we are #8 in India, #1 for C-Power for fuel tanks. #2 and #3 for Exterior. And the ambition at the end of the decade is to be #1 in C-Power, but also in Exterior. We also booked recently a small Module business in India. Therefore, very confident at least to double, potentially to triple our sales until the end of the decade.

Second question, could you talk about the current visibility you have in terms of your, let's say, 6, 8 weeks usual visibility versus 3 or 6 months ago, given what happens with JLR so far in the U.S. and this Nexperia dispute? Do you have the same visibility? Or is it a bit more shaky right now?

No, I don't want to say it's more shaky. I mean you should remember that in April, May, we were all talking about tariff. Therefore, the visibility was not very high because of the tariff impact. Now there are some topics at the JLR, Nexperia and so, you all know, but the visibility is, I would say, at the same level as what we had a couple of months ago. No major change.

Great. I've read that General Motors is reviewing some of its plans for electrification and hydrogen. Do they still have a plan to build this vehicle that would imply substantial revenues for your hydrogen business? Or has this been impacted by their reviews?

No, they have changed their strategy. You may remember that we booked the business with them, I think, 3 or 4 years ago. They were supposed to start to produce in 2028. Then with the new administration, they have been postponing that to 2031. That was their decision at the end of last year, beginning of this year. And now they announced that for the time being, they are canceling the project. There was no revenue for us scheduled before 2031. Therefore, there is no impact. There was no investment related to that. Therefore, they take the decision to cancel for the time being hydrogen, but no impact for the company so far.

And last question, please. Your Module revenues were down for the first time in a while. Could you just discuss what we should expect for the coming quarters? Is it just a signal that you've reached sufficient proportion of revenues with Modules and therefore, you plan to level that out? Or it's really just your customers' activity that drove that?

It's -- I'd like to say it's a mix. First of all, in Q3, it's mainly in Europe. It's mainly because of 1 or 2 German customers having shut down their factory because they are not selling their cars as expected, mainly EVs. Therefore, that is the reason why in Q3, Module was suffering a bit in terms of sales compared to Q3 last year.

Now to your other part of the question, we like very much the Module business because it does open the doors to new customers. And every time there is a new factory being built in the world, we have a great opportunity to value our Modules activity. But from the other side, we are more selective in terms of geography, in terms of margin, and we don't want to be overexposed to Modules.

Therefore, the Q3 performance is really due to this topic in Europe with the German carmakers struggling with the volumes. That should come back to a normal situation in the coming months. Mid or long term, we like the share we have in Module, but we don't want to be overexposed, and we want to be very selective in our Module strategy. It has to be fully in line with our strategy to be more diversified in terms of geographies, in terms of customers as well with the margin we can expect from the Module business.

The next question comes from Michael Foundoukidis from ODDO BHF.

A few questions also on my side. I will ask them one by one. Just to follow up on Modules. First, how should we think about Q4 in terms of revenues? And second, what should we think about profitability for H2 versus H1 given the lower revenues? That's the first question.

The H2 profitability, Michael, is for Modules or for the group?

For Modules.

For Modules. Q4 in terms of Modules should be, I would say, similar to Q4 last year. No major change. In terms of profitability, the profitability of Module in S2, in second semester this year will be better than the one in the second semester last year. And I'll use the opportunity to say that we expect the profitability of the group, OPmobility, to be higher in H2 this year compared to the H2 last year in all the financial KPIs, operating margin, net and free cash flow. And that will be the case for Module as well.

Okay. Maybe just a follow-up to Thomas' question on the supply chain disruptions. Could you be just be a bit more specific on Nexperia. Are you a client for your Lighting business first? And do you believe that it could disrupt production? And if so, I mean do you have any idea of current inventories? And same for aluminum with Novelis in North America. Ford is probably a big client for you in the U.S. So anything to flag here in terms of cutoffs? Second question.

Yes. Thank you for your question. I mean Nexperia, it's a supplier of us only for a few products for some lighting activities, as you mentioned we had before. But we are not concerned about our supply chain because inventories are secured for the coming weeks. Therefore, we don't have a direct impact to be expected from Nexperia and the team is working on second source. Therefore, for us, no worry concerning our supply chain with Nexperia And for sure, we do observe what's happening on the market, either with the other Tier 1s or with the customers.

Frankly speaking, I don't expect any major impact because everybody is working on potentially second source, and there are opportunities in the market. First of all, because I believe the situation will come to, I would say, will normalize in the coming weeks. Therefore, for us, no impact to be expected, and I personally believe no major impact to be expected on the global market from Nexperia.

Regarding the aluminum topic, that is for Ford in the U.S. These are volumes where we do deliver tanks. That means we are a bit impacted about the issue Ford is facing. Now you have also to notice that Ford is trying to compensate by producing other vehicles. And thus, we have a very strong position with Ford in North America for the fuel tank, having almost 100% of the market with them, close to 80%. We are able to compensate. And we lost big volumes in the last weeks, in the coming weeks as well, but it's very little, no major impact on the company.

Very clear. Much appreciated. Maybe a third question on cost. Could you detail a bit your actions that you took in H1 and especially in Q2? And what's between, I would say, flexing cost and what is more structural on engineering and would also play in 2026, for instance?

In terms of cost, it's exactly what you mentioned. There are topics which are about flexibility. You know that we have always a very high level of temps in our factories to be able to flex, and we are using for sure these flexibilities. We have more than [indiscernible] sorry, in our factories. We have also contractors in engineering. That means we always want to have a cost structure which is pretty flexible. And that is something we have been using in H1 in Q3, we will continue to use to adapt to the market.

And then second, in terms of, I would say, long-term improvement of our cost structure. We have been working a lot on our SG&A organization in the last year. And you have seen that in the first semester, our SG&A level was massively reduced compared to 2024. That is due to reorganization. That means we are mutualizing certain functions between the business group, what we didn't do in the past. That is a program we started more than 1 year ago. That is something which is ongoing.

We decided to merge Exterior business group with the Lighting business group, also bringing some synergies in terms of SG&A. Therefore, here, we expect to have, I would say, a sustainable improvement of our SG&A in value, in percentage in 2025 compared to 2024, but also in 2026 compared to 2025 because again, it is due to reorganization of the company in terms of SG&A.

In terms of R&D and project costs, that is also a topic we have been mentioning at the end of S1. You know that if you assess the investment of the company, around 2/3 are due to project costs. And as the number of projects is increasing globally, because more and more diversification from our customers and more and more customers as well, we have a clear target to reduce massively our project costs in the coming years. We would like to reduce by 50% until the end of the decade.

And we are working on 2 topics, one topic is to develop new tools to be more digitalized, to use more AI to be faster in the development. And the second is to accelerate our move to low-cost countries. We have already 50% of our staff being in low-cost countries for engineering, but that will accelerate in the coming months, in the coming years. And one example is India. India, where we are doubling the capacity of our engineering centers until the end of the decade. Therefore, here as well, cost in the coming years at a similar volume level will decrease massively, thanks to this approach.

Therefore, to summarize, it's a mix of using the flexibility we have in the company, but also working on the long-term measures to improve our competitiveness by working on SG&A, project costs and so on. The aim is always the same is to continue to be able to invest for the growth of the company, but by deleveraging the company, by delivering year-over-year better financial performance.

Maybe just a quick last one on Asia and China outperformance. Any color you could give us on the coming quarters? I mean rest of Asia should continue to outperform significantly? Do you think that you're able to remain in line or better in China?

I think, I mean, what we see right now for the fourth quarter is that it should be more or less in line with the third quarter. That means we will continue to outperform the Asian market. In China, Stéphanie noticed that you know that in the last year, we were suffering a bit because we were not with the right customers, I'd like to say, just because of the transformation of the market. For Exterior, the way team did a great job. And our customers are also the winners, which is giving us a lot of confidence to be able to be in line or potentially to outperform the market in the coming years.

And what is also new for us is that we have been working intensively in the last years to capture the growth opportunity we have for the PHEV or [indiscernible] activity for our C-Power business. That is what did happen in Q3. And as we booked orders recently with Xiaomi for example, for hybrid vehicle. We are confident that the C-Power business group will be in line with the market in the coming years as well.

Therefore, it is sustainable. Should be the same as well for India and for Korea. What you saw in Q3 should continue in the same dynamic in Q4. India, I was mentioning that we just opened the factory and we're ramping up the volumes. Therefore, it should have a benefit as well in the sales in the coming months and years.

The next question comes from José Asumendi from JPMorgan.

Three quick questions. When do you -- just on Exterior & Lighting, when do you expect the orders that you show awarded? When do you expect those to kick in on revenues and start helping additionally that top line?

Second question, big ambitions in India and clearly very strong track record there that your building. What does this mean for CapEx for the group, let's say, medium term? Or maybe you can give us some, maybe, I don't know, CapEx per plant as a rule of thumb, and we can start thinking about those investments going forward?

And then three, supply chain. I hear a very tall message and stable, message of stability from you, Laurent. Having said this, as we think about the auto industry in Europe, how many weeks do you think of supply does the -- in general, does the supply industry have to be able to cope with this kind of like onetime events? Do we have like 4 to 6 weeks of supply in the pipe to withstand these events?

Thank you very much, José, for your question. Exterior & Lighting, you know that for the Lighting business, the time between the order being booked and the start of production is in average 3 years. We made the acquisition 3 years ago, it was in October. We started to book intensively 6 months after, after having gained the trust again from the customers. Therefore, most of the start of production will happen in the second semester of 2026, but we are launching right now.

I am in the U.S. this week, as you may know, we are launching, for example, in Mexico, the headlamp, the lighting system for the new Jeep Grand Cherokee. That means the launches are starting, and we will have many, many, many launches in the coming quarters. But it will be, I would say you will see an impact on the sales of the second semester of 2026, and then it will be even more in 2027. That is fully in line with the expectation. And again, with the 3 years we have between the order being booked and the sales being seen, I would like to say in the revenues.

Regarding India and CapEx, India is a very also competitive country in terms of CapEx. For the new factory, we just opened, we have been investing around EUR 30 million, 3-0, which is very little for a new factory in Exterior with a paint line, with injection capacity and so on, but also with the C-Power blow-molding. And we have been able to get close to 30% of grants.

Therefore, in terms of investment is very decent. And these are the numbers you should consider for the coming factories. That means between EUR 20 million and EUR 30 million. And then you have a great factory in India, both for Exterior and for C-Power. Therefore, no major impact on our CapEx, frankly speaking.

In terms of supply chain, the question is either the visibility stability we have. And then regarding the visibility stability we have, we don't see major risk with our suppliers. That means when you have 20,000 suppliers, there are always some of them struggling a bit. But basically, we don't have any risk identified so far for our suppliers in the coming weeks in Europe, in the coming 6 weeks, for example.

For our customers, I was mentioning before to Thomas, there are no major changes. We had already changes in the last years, and we are used to that. But today, I don't see major changes coming in the coming weeks. There is for sure this question about Nexperia. But again, as I mentioned before, I don't expect a huge impact on Nexperia. Some of our customers may have a small impact for 1 or 2 days, but I don't expect a huge impact on Nexperia. That is based on what we have in our system, but also on the discussion we have with our customers. That means I want to say we are overconfident, but today, no major risk being identified.

[Operator Instructions] The next question comes from Christoph Laskawi from Deutsche Bank.

I'm sorry to come back to Nexperia one more time. You highlighted that you're working to second source those semis. And in theory, I think they should be available from [indiscernible] and others, for example, with reasonable capacity being available right now. How long does it take for you to establish that second sourcing? If I'm understanding correctly, you need to recertify those components with the OEMs. For your lighting products that are impacted, could you elaborate on a rough time line for that? And how quickly you can then start sourcing from the other guys? That's the first question.

And then the second would be on Europe, where you underperformed because of customer hiccups, obviously. Now you highlighted the start of production again. Should we expect the JLR issue to be largely resolved in Q4? So the underperformance narrowing quite a bit. I think it explains around 30% in Q3. Or should we not see the full impact going away?

Yes. Thank you for your question. Nexperia, again, when I said we are working on the second source is also to secure the supply chain. And today, we have enough inventories from Nexperia products for the coming weeks. But for sure, we are working on the second source in case of. The components are important because they are in our lighting systems, but they are not important because they have a very high technology. These are more or less global standard and easy components to resource.

Therefore, also the validation with our customers can be accelerated because they are not critical for the functionality of the lighting. Therefore, at the end, it's also a question. It's not a question of many months. It's a question of a couple of weeks between 1 month and 2 months to develop the second source and to validate the second source. But again, today, as of today, no need for us because we have enough inventories within Nexperia. Nevertheless, we are developing second sources.

In terms of Europe, you noticed that Jaguar Land Rover with the cyber attack did impact us in September. We lost between EUR 30 million and EUR 40 million of sales in September because Jaguar Land Rover is a very important customer of us, both in England, where we have almost 100% market share with them, but also in Slovakia, where we have a factory dedicated -- not dedicated to them, but working with them in Slovakia for the exterior parts.

Therefore, the impact was, in terms of sales were between EUR 30 million and EUR 40 million in September. They restarted the production a couple of days ago, but they are ramping up their production. Therefore, we do expect to have an impact again in October, to have a smaller one in November. I don't believe they will be working at full speed before the end of November because they have to reorganize the complete supply chain.

And they have the intention, they have the target to recover and to compensate the volumes in Q1 2026 because the cars have been sold and now they have to speed up the production. But you should please keep in mind that the biggest impact was in September. October should be a bit EUR 30 million to EUR 40 million. October should be a bit better, November close to where they were before, but no complete recovery before the end of November from my point of view.

Understood.

Okay. And for sure, you can imagine that we are in very close commercial discussion with them. And they are very fair in the way they do approach that to find a way to commercially to compensate, I would say, the cost for us of this issue we are facing. Okay?

There are no more questions. I will now hand the conference back to the speakers for any closing comments.

No, first of all, many thanks for your questions. Many thanks for attending this call. And again, I don't want to repeat what we said, but we had again a very rich Q3, both in terms of sales where we show that we had a dynamic revenue. We are very happy to see that North America, that Asia are gaining importance in our turnover because it is fully in line with our strategy.

We are very dynamic as well in terms of order intake, and we will announce potentially in the coming months good news also in new orders, showing our capacity to grow, for example, in the U.S. And therefore, we are confident to achieve our 2025 targets, which are about improving compared to 2024 in all the financial KPIs, both linked on the solid revenues, but also on our capacity to manage the cost, to flex, but also to work on our cost structure.

And therefore, a good Q3 for us. A lot of confidence in a challenging market, but we are used to face to adapt to a challenging market. And again, I want to use the opportunity to thank the great OPmobility team. Many thanks for your time and see you in a couple of weeks. Thank you.

Thank you, ladies and gentlemen. This concludes the call. You may now disconnect.

Good morning, everybody. Very, very happy to welcome you here in Levallois-Perret. Together with Felicie Burelle, [Foreign Language] Felicie. Good morning as well, Stephanie Laval. We are very happy to comment to you the results of the first semester of 2025. We will, for sure, talk about the financials, about the business highlights.

But I will, first of all, start with a kind of summary about our first semester 2025. You know the market environment was, again, pretty challenging, was pretty volatile, mainly impacted by the tariff, by the trade wars, by the uncertainty. In this context, we have been able to post again a very solid performance in the first semester. We have been able to grow slightly. We will come back to that later on. But even more, the operating margin of the group did improve by 11%, up to 4.9% compared to last year in the first semester of 2024.

The free cash flow did improve as well by 5% compared to last year, and that drives us to have been able to reduce massively the debt compared to 2024 December and to improve the leverage to 1.5x. That shows again the capacity of the group to adapt to a very volatile environment to continue to invest for the future, but also to adapt to the environment and to the market.

When we move again and talk about a bit the market, as mentioned, in Q1, at the end of Q1, that was the announcement of the Trump administration about the tariff or about the potential tariff with some impact on the supply chain with some impact on the production. We had to face some stop in production, temporary stop in production from our customers and to adapt permanently our capacity, our resources to the reality of the market.

OPmobility is potentially less impacted than the others because we have a business model which is pretty solid, meaning that we do produce where we sell. We don't have a lot of business, as you know, which is cross-border business. Therefore, the direct impact of the tariff is limited. For sure, we have some impact because we do import some components to produce in the U.S., for example, out of Mexico, out of Asia. That is the impact we are having. But the team did a fantastic job, first of all, to find ways with our customers to compensate, to mitigate this impact, but also even more to work on cost management measures in order to mitigate, to compensate, to overcompensate, [ like to say ], the negative impact of the tariff uncertainty.

That drives us to the result you can see on the slide, which we will comment later on with Stephanie with much more details. But if we come back to those results, operating margin, EUR 260 million in the first semester, 11% better than last year which is 4.9%. If we would isolate the business module, which is different in terms of business model. As you know, it's a low margin, low CapEx business. The group [ EBIT ] would be at 5.9%, which is pretty strong and a huge improvement compared to last year.

Our net result is at EUR 90 million, which is very solid, a bit lower than last year by EUR 10 million. The EUR 10 million is due to the fact that we had higher nonrecurring sales cost in the first semester, mainly driven by restructuring costs, but it will -- it should normalize in the second semester where we will have, I would say, normal nonrecurring cost in the second semester.

Free cash flow saw a nice improvement compared to last year, EUR 165 million, 2.7% of the revenue, 5% improvement compared to last year, mainly due to the fact that higher margin and CapEx management are driving us to a better free cash flow.

And the debt, which is a target of the group to deleverage the company to stay independent as we have been always in the past, the debt reduced by EUR 118 million compared to 2024, which is driving us to the leverage I was mentioning before. Therefore, based on this very, very solid result, we are very happy and very confident to confirm that 2025 will be a good year for OPmobility and that we will be in line with our guidance.

Coming back to the cost management measures, just to give you some examples about what we have been doing with the team again to adapt to this market uncertainty. We know that we are very, I would say, very aggressive, very dynamic in our way to manage SG&A. And in the first semester, we have been able to reduce the SG&A by 7.7% compared to last year, meaning that the SG&A of the group are now at 4.1% compared to 4.4% last year in the first semester, a huge effort from the team, which was necessary again to deliver the results I mentioned before.

Very strong management of the CapEx as well, down by 13% compared to last year. We did inform you that we are targeting to reduce our CapEx between 5% to 10% for the complete year. We are in line with that. We are managing the CapEx without impacting the future of the company. That is also the DNA of the company that we want to grow. We want to invest in technologies. We want to invest in new facilities. We will open new facilities in the second half of the year, and Felicie will talk about that India, in Morocco and so on, for example. Therefore, we will continue to invest, but we are managing the investment very carefully to adapt to the market environment.

In terms of sales, I just want to explain you the situation by region. First of all, if we take Europe, our biggest region, as you know, we have been able to grow in Europe. Europe is, again, unfortunately facing a decline in sales by -- in production by 3.6%. But the group did post a very strong outperformance, close to 8 points, mainly driven by the Module business, but also by the other business groups, which are performing very well in Europe. Our target in Europe is to consolidate the market. Market is declining. There will be less players in the coming years than today. We are #1 in everything we do in Europe, and we want to consolidate the market in Europe.

In North America, a diverse view by country in terms of U.S., which is a country we are targeting to grow to outperform the market in the coming years. We have been able to post a 3-point outperformance in the first semester. But in Mexico and in Canada, we did underperform the market for very simple reasons. Some of our customers stopped their production in -- for a couple of weeks. Stellantis, for example, it is well known in Windsor in Canada, but also in Mexico. And then for sure, we have been impacted in terms of sales, but it should normalize in the second semester.

In Asia, strong outperformance, 6-point outperformance, strong growth of the company in Asia. If we deep dive Asia, if we, first of all, start with Asia, excluding China, the group is strongly growing 25% compared to last year, very strong outperformance, mainly driven by our Module business in Korea for Hyundai, but also driven by the growth we have in India, and we will talk about India later on in the presentation.

In China, we are growing, not as fast as the market, but we are growing by 3.5% with a diverse situation depending on the business group. If we start, first of all, with C-Power, which is our fuel tank business. The good news is that we are stabilizing the operation. In the past, we were decreasing in China. And the order intake of C-Power is very solid in China. That means we are adapting to the market. We are addressing the winners in terms of customers, and we are developing our business for hybrid in China. Therefore, very confident that C-Power is going to grow in the future in China.

Module is suffering a lot in China because Module is mainly serving Mercedes-Benz. Mercedes-Benz is not very successful right now in China, is reviewing its strategy. Therefore, there is an impact for us in sales in China in Module for the time being.

And our biggest business in China, which we don't consolidate is the Exterior business, YFPO, our joint venture having more than 20% of the market in China is growing in line with the market. That which is more than 12% growth for YFPO. In the past, it was not the case in the last 2 or 3 years, but YFPO has been able to, say, to adapt to the new market situation. And a big part of the order intake for YFPO, more than 60% is with Chinese OEMs, therefore, also fully on track to grow in the future in China.

I'll now hand over to Stephanie. Stephanie will deep dive the financials of the first semester.

Thank you, Laurent, and good morning, everyone. Let me start first with the revenue. In H1 2025, OPmobility posted a strong economic revenue close to EUR 6 billion. It's a plus 1.6% like-for-like growth compared to H1 last year.

The economic revenue in H1 includes a negative FX impact of minus EUR 71 million, mainly due to the dollars and the Argentine peso.

If we look at the performance by segment, starting with the Exterior & Lighting. So the growth on the H1 is minus 2% -- sorry, a decrease of minus 2% like-for-like for the Exterior & Lighting with 2 different trends. First, the Exterior, which is slightly growing despite lower activity on tooling and development due to phasing of launches.

And on the second part, so Lighting, which is continuing to be impacted by the lower order intake previous to the acquisition by OPmobility, but it was expected.

Moving to the Modules part. Modules posted a very strong like-for-like growth of plus 9.4% on the semester, which is a remarkable performance, mainly driven by Europe and South Korea.

On the Powertrain side, different [ evaluations ] also, the consolidating position of the fuel tank systems, which continue to grow in a market where electrification is not progressing as fast as everybody was expected and the solid growth of the hybrid, which will benefit also for the fuel tanks activity.

Electrification and hydrogen are adapting to the market and to the volumes of the market, of course. So quite solid revenue for the H1 for OPmobility.

Moving to the significant improvement of our operating margin. Laurent just mentioned the plus 11% compared to last year. So the operating margin amounted to EUR 260 million, which is so plus EUR 26 million compared to last year. It's 4.9% of the revenue compared to 4.3% last year, which, of course, highlights the benefits of the strict cost measures that the group has accelerated from Q2 onwards. And we see that the group has succeeded in mitigating the impact of the tariffs in its operating margin.

If we look at the performance per segment, on the Exterior & Lighting side, you have the operating margin, which is at 5.2% in H1 2025. It includes 2 evaluation. On the Exterior side, the operating margin is progressing. It's slightly progressing in H1, while the Lighting operating margin is directly linked to the level of the activity I just mentioned before.

On the Module side, we come from 2.2% last year, and we reached 2.7% on the operating margin in H1, which is a big improvement. I remind you that we came from 2% in H1 2023. So you see the big improvement semester after semester.

On the Powertrain side, it's also a big improvement coming from 4.5% and going to 5.8% in H1, which is really also remarkable. It is linked to an improvement in the margin for the fuel tanks activity as well as an improvement in the margin for the electrification and the hydrogen activity on the semester.

If we now look at the bottom of the P&L, I would like to highlight first the EBITDA, which stands at EUR 516 million for the semester, representing 9.7% of the revenue, and it's a plus 1 point compared to last year, which is also a big improvement.

The operating margin, so it's decreasing of plus EUR 26 million in H1 this year compared to last year, which offsets most of the impact of the increase in the nonrecurring costs.

The other operating income and expenses, so it's an additional plus EUR 33 million in H1 this year compared to last year, mainly linked to 2 things. The first thing is the increase in the reorganization costs, mainly linked to the transformation of the group in order to accelerate its competitiveness but also impact on the currency effects.

The financial costs remain contained, which is good news also for the H1 and income tax is slightly decreasing with a stable tax rate at 34%, the same level as last year. All in all, the group posted a solid net results group share at EUR 90 million.

Moving to the free cash flow. The group posted robust free cash flow generation in H1 at EUR 165 million. It is up plus 5% and it represents more than 3% of the total revenue of the group, up plus 0.2 points compared to last year.

As Laurent has already mentioned, the CapEx were controlled, while the group continuing to invest for innovation and to strategic, of course, investments, but we controlled the CapEx given the context.

The evaluation of the working cap is a positive contribution to EUR 7 million for the H1. All in all, thanks to this free cash flow generation, the group has succeeded in deleveraging, which now I will comment on the next slide.

All the charts that you can see on this slide highlights the solid and sound financial structure for the group. If I start on the left, you will see that the group has deleveraging, so close to a minus EUR 120 million reduction of the net debt compared to the end of last year with a leverage at 1.5x EBITDA compared to 1.9x at the end of 2022 when we made the last acquisitions.

The group also has a strong liquidity position with EUR 2.3 billion with EUR 0.6 billion of available cash and EUR 1.8 billion undrawn and confirmed credit lines with no covenants and an average maturity of 3.3 years.

The gearing is also improving, as you can see on the chart on the right. It is now at the end of June of 71%. It was 76% and even close to 90% at the end of 2022. So you can see on the chart a strong improvement, confirming the disciplined financial policy of the group as well as a strong balance sheet.

I will now turn to Felicie that will give you some color on the business.

Thank you. Thank you, Stephanie. So indeed, some further comments about this dense activity during the first semester. which overall, we had 77 SOP in this first semester. And in terms of commercial activity and order intake generation, we are on track with our annual target.

If we look at Exterior & Lighting, which is, as you know, the 2/3 of our business today. And as you may remember from our announcement back in February, we have put together those 2 activities for 2 main reasons. The first one that obviously we can have synergies in between the 2 cost-wise, but also synergies from a product standpoint as we are moving forward with our One4you offer, which aims at providing the full exterior modules to customers, and we have good traction on that currently.

You have here a flavor and a good representation of the many launches and key awards that we have had during this first semester that shows again that we are capable of supplying our customer everywhere, you can see and the geographical footprint of those launches and awards is quite well balanced.

And we have had a pretty good performance in Europe, as you mentioned earlier. So resilient performance in the context of European decline. And in Asia, we are really making this pivoting of the customer portfolio happening and really targeting those new Chinese players that are rising and taking the bulk of the market today, which is, as you know, a very important market.

Also notable fact, we have secured for Exterior a 10-year contract in Europe, which back to the point of consolidating our base in Europe is a key achievement of the team. It's a large platform that will be able to serve various countries.

Lighting, as we mentioned, also lower ramp-up of activities because of the backlog of the low order intake during the acquisition process. But for the third year in a row, we are targeting a solid order intake in the average of EUR 2.2 billion to EUR 2.4 billion, so third year in a row. So that will definitely secure the growth for the years to come and with the ramp-up of the launches to happen starting next year.

If we look at Module, also we mentioned it very strong performance from the team that has been sustained, thanks to more volume in Europe and some key launches like the Skoda you can see here in Central Europe, but also very strong activity in Southeast Asia. And in the U.S. with -- thanks to our Austin plant, we started this business for this U.S. EV player back in February and the ramp-up will continue to improve in the second semester. So -- and really also Module is a key business for us to address all the types of mobility with modules that go beyond passenger cars.

Powertrain, we pursue -- we continue to pursue our consolidation of the market. Obviously, as mentioned, this slower takeoff of electrification is giving opportunity for C-Power to further consolidate and grow on the solid customer relationships that we have. But we are also starting to deploy this consolidation of the market beyond our original markets. And that's why we can also see that we have strong growth to come in Southeast Asia, notably in Thailand, again, balanced ramp-up and launches and key awards everywhere around the world.

We are also very active commercially speaking, on developing the e-Power and the H2-Power. Obviously, no key launches so far. But again, consolidating the order intake positions mainly in the U.S. and in China that we will be able to comment further in the second half of the year.

Back to our ESG road map, which is still on. As you know, 2025 is a very important year because we are committed to be neutral on Scope 1 and 2 by the end of this year, and we are on track to do so. Obviously, the key -- one of the key levers is to reduce -- to be more efficient in our energy consumption, which we are, plus 24% versus 2019, which was the year we developed this plan.

And also by using more renewable energy. This year, we have 38 sites equipped with solar panel and wind turbine, which is 3 more sites if you compare to the end of the year. So in 6 months, we have put 3 more equipment to our plants.

Very important milestone also for us on the safety side, which for us is key. It's key because obviously, we owe that to our people, but also because we strongly believe it's a key lever of performance in our plants. And we have achieved our best score in this first semester with a score of 0.42 for FR2, which is below our target for the year. So we are very proud of this topic.

Back more to the geographical strategy. As we have explained to you already, we are very focused on consolidating Europe, but growing elsewhere, elsewhere being Asia, obviously, a very important market, China being the first market. And in this market where we have 37 plants today, we are the leaders in Exterior business, thanks to our joint venture. And as I explained earlier, we are very much focused on making this pivoting of this customer portfolio that is so important. So we share -- we target new, new customers. But also one of the key levers for OPmobility to grow is to leverage this commercial relationship that we have there in China to develop and accompany those new customers that are deploying new capacities outside of China. And thanks to that, we have secured a first order with the Chinese with business to come in Europe. And we will have further commercial topic development in the months to come. Strong market shares that you commented earlier and a very strong order intake, focusing on those new key players to grow elsewhere.

Outside of China, rest of Asia, good momentum happening in Korea. We've mentioned we have a JV for Modules here that is developing very well. And we have secured new business in Indonesia for BYD and Suzuki on the fuel cell systems side. Also targeting those new mobility markets, China and Asia in general is a good market with a very strong development. We've already announced to you the train application that we have secured in hydrogen a few months back, but we have new opportunities coming up.

Obviously, India is also part of this region, and we have strong ambition for India. If we look at our footprint of India, today, we have already 4 plants and 2 more to come and to be open in the months to come. And actually, one of the Exterior plant that we are building will be one of the biggest plants for the country.

The pace of development of India has always been steady, but we have taken an approach of being a fast follower of this growth in this market. And we have a strong relationship with Maruti Suzuki for the fuel cell -- for the fuel tank activities and strong relationship with Mahindra as to the External business. So we are leveraging those commercial relationship to grow much more in India. Obviously, India is also will be an important country when discussing assessing potential other application of mobility in the years to come and thinking about hydrogen in particular.

I hand over to you, Laurent.

Thank you, Felicie. As you see, many activities in the first semester, many commercial activities in line with our strategy, again, our 4 pillar strategy, which is about growing in a transforming market based on technology and more balanced geographies, what Felicie explained for Asia. It's also valid for America, but also winning or gaining new customers, the winners of the transformation and going to mobility beyond the passenger car market.

Outlook and conclusion. Regarding the outlook, first of all, you can see the numbers of S&P, and these are the latest S&P numbers for the second semester. S&P is forecasting a second semester lower than last year in terms of production volumes, lower in each region, as you can see, meaning in North America, in Asia, in China, but also in Europe. That is our assumption as well as of today. That is also what we do see the orders of our customers for the coming months. But based on the very solid performance we did post in the first semester, which we just commented, but also on the volumes we do see for the coming months from our customers and our capacity to adapt to work on our cost structure permanently and to improve our competitiveness as efficiency, we are very confident in our capacity to achieve our targets for this year.

Therefore, we confirm the outlook 2025, which is, as you may know, operating margin higher than 2024, net result also higher than 2024. The same for the free cash flow, which is going to be higher than the one from 2024, which means that we will continue to deleveraging the company -- to deleverage the company, sorry, and to reduce the debt.

Conclusion. As you can see, we are very, very proud of the job being done by the team. I think it was a very, very solid, fantastic first semester. I want to use the opportunity to thank the OPmobility team, the global team to have been able to adapt, to react very fast to this very interesting market, I would say, a very volatile market. You see also that we finished the first semester with a very sound financial structure. You know that we take care of a lot of our balance sheet of our debt, which is very, very healthy, as Stephanie mentioned before.

We continue to invest in our future, future in terms of technology. Some examples were explained by Felicie, but also in terms of geographies because we are opening new capacities right now in Morocco and India, for example, and we will continue in the coming years.

We're also permanently working on our competitiveness. Competitiveness is key. We want to be the most competitive one. A great asset we have is our strong positioning in China as well. If you are the leader in China in exterior parts, you know also how to be the leader worldwide in terms of competitiveness, and that is what we are doing.

Very satisfied also about the order intake in the first semester and the order intake for the coming months, which is very good in terms of quantity, but also in terms of quality. When I talk about quality, that is the margin, but also the diversification in terms of geographies, in terms of customers as well, fully in line with our long-term strategy. And therefore, we are very positive or very confident in our capacity to deliver 2025 and the targets we have committed.

Many thanks for your attention, and now we come to the Q&A session, starting with the room, I assume, and then the people being online.

Thomas Besson, Kepler Cheuvreux. So I'd like to start with congratulations for the results. I'd like to start with the organic growth Q2 versus Q1 and how you see the evaluation of production over the coming quarters. I mean there's been a lot of unusual revisions by S&P, big cuts in April, relatively big increase, but mostly retroactive. So do you think that the scenario in -- obviously, nobody has a crystal ball, but do you think the scenario is for decent decline in H2 production versus H1? And specifically, can you explain why your organic growth deteriorated in Q2 versus Q1?

I think the S&P evaluation is just showing how volatile the market is. They are changing very fast from one to the other, as you mentioned, Thomas, which is just showing again that everybody is navigating in a very complex environment, which is not only driven by the performance of the customers, but also by the trade war and the potential impact on the supply chain and so on. That's the reason why S&P did the review many times. I'm sure it's not finished up and down by region and -- for us, Q2 was weaker, mainly because of what we mentioned before. That means we had to face some shutdown of production in North America after the tariff announcement. You know that, for example, Stellantis decided to shut down some factories for a couple of weeks. And as we are the supplier of Stellantis, it was negative for us. It was not the case for other OEMs and that just, I would say, it was just for a couple of weeks. Now it's back to normal situation. Therefore, we don't expect that in Q3 and Q4.

As of today, we believe that Q3 should be more or less in line with Q3 last year in terms of volumes. Q4 would be a bit weaker than last year. That is at least what S&P is saying. That is also what we can see from our customers right now. But again, in this context, we are confident that we have the capacity to adapt and to deliver our commitment.

You said you're very happy with orders, quality, diversification. Can you give us an idea of the amount of orders and the rough ideas of how it splits or you don't want to communicate on that?

No, we don't want to communicate on that. But when we say we are very satisfied is because we are convinced that at the end of the year, the order intake will be much higher than the sales level, even if we discount some volumes compared to what the OEMs are saying because we have learned that we have not to be always very confident depending on which platform, but it will be much higher than our sales level. And the quantity is important, the quality as well because our target is again to diversify in terms of geographies and to develop customers where we are not so strong at today, that is also the case.

Understood. Can you give us an indication on what we should expect for the other income and expenses for the year? In H1, you had a decent increase in restructuring that reflected your accelerated cost efforts. Should we expect something that will be similar to H1 in H2 or it has peaked already in the...

No, it has peaked. I think Stephanie explained, we had also some -- we are working permanently on the competitiveness. We had to adapt our footprint. We announced some plant closure in H1. We didn't want to postpone that because everything we do earlier is having the payback as fast as possible. Therefore, there was a kind of peak in H1. H2 should be normal -- back to normal, what you know from the previous years in terms of the nonrecurring cost -- yes, I would say, restructuring cost.

Okay. I'd like to come back to your Powertrain performance, which I think was very impressive, the most impressive part of your results for me. Can you explain how your adjusted EBIT goes up EUR 15 million on decline in revenues in the quarter in the semester? I think Stephanie mentioned that there was an improvement in both the regular business and the new businesses. So is it effectively -- are we at kind of historic margins in the ICE business? And are we getting close to breakeven in the rest? Or can you just be a bit more specific to explain what we should expect for the second half?

We'll do it without disclosing numbers because I want you to do your job at the end, now that it's a mix of everything. I mean, first of all, in C-Power, the activity is pretty stable. And the team did a fantastic job in the last years to adapt our footprint. You may remember that last year, we closed some factories. We closed a factory in Germany. For C-Power, we closed 2 factories in China. That means we have been reducing the breakeven point. And if you reduce your breakeven point and you maintain your activity, you increase your margin. Therefore, there is a margin improvement of C-Power. And we will continue.

Therefore, we are very confident in the fact that in the next 5 years, at least, with the order intake we have with the consolidation of the market. You know that we have about 22% of the global market in terms of market share that we are confident to get to the 30% at the end of the decade. So we are convinced we will have a stable activity with lower cost structure, a better breakeven point, therefore, a very strong margin in the coming years. And that is what is paying off also in the first semester compared to the first semester of last year.

Hydrogen and electrification. For electrification, we doubled the sales in the first semester as well. It is -- it will be about EUR 80 million of sales this year, which is a decent, I would say, side, but double compared to last year. And also a strong job being done by the team in terms of improvement, in terms of working on the cost structure. And we announced the closure of our main factory in Germany for this activity, which is going to be transferred to a French factory existing already. Therefore, also efficiency plus cost structure being optimized. Therefore, electrification is improving also in terms of margin in the first semester.

Hydrogen is pretty stable, is improving in terms of cash because we are not investing as much as in the past. We have the capacity in place right now, and we have been investing in the last years. Now we reduced massively the investment to adapt to the pace of the market. In terms of margin is similar, in terms of cash consumption is becoming better hydrogen.

Can you qualitatively talk about the situation in Lighting? I mean it has been obviously a more complicated integration because of end markets and the businesses you were exposed to as a result of this acquisition. Where did we stand in H1 '25? Is that the low point in terms of revenues and contribution? Or are we already seeing the contribution improving?

No, I think it was what Stephanie mentioned before, what we said also many times, we had, I would say, a very weak order book from the past. And the weak order book is now in the revenues of the Lighting business. The lowest point was H2 last year, H1 this year, as expected, I'd like to say. great job being done by the team to adapt the structure cost. We have merged Lighting and Exterior, as Felicie mentioned before, also to be more efficient in terms of cost management. And the second semester of Lighting should be much better than the first semester in terms of margin because we had a lot of one-off in the first semester to do this job, I'd like to say.

And the second semester should be better in terms of margin. And last year, we should start to grow in the Lighting business because you know that between the order intake and the revenue, there is about 3 years in Lighting, and we started to book decent orders in 2023. We already mentioned that '23, '24 cumulated EUR 3 billion of orders in Lighting and '25 is in this space, more or less. Therefore, second semester will be better and '26 will be better than the second semester and '27 much better than '26.

But Lighting is already having a fantastic contribution to the team in terms of technology, in terms of customer intimacy also for the Exterior business group because, as you know, there are many Lighting players in the field, but there are not so many Lighting players being also to deliver and to develop the tailgate of the bumper, which is the support of the Lighting that is giving us a lot of opportunities to -- with our customers.

Great. Last question for me, please. Sorry, Stephanie, I think I got to 6, it's a record. Can you give us a sensitivity to forex? We are seeing the dollar weakening and likely weakening further given the policy of President Trump. I think the understanding we have maybe completely incorrectly is that Europe is not your most profitable region. It's more the region where the currency is deteriorating in terms of margins. I mean, is it right or wrong? Maybe completely wrong. And that's why I'm asking the question on currency sensitivity. So should we see a relatively similar impact on revenues and margins? Or does it have an impact on your margins? That's my last question.

No. I mean we are pretty balanced in terms of geography, in terms of margin. There is not a big difference between America, between Europe and between Asia, which is important as well to mitigate the impact of FX. Therefore, there is no major impact to be expected, except in revenue if you translate to euro, but that we cannot change. But in terms of margin, it's pretty well balanced between America, between Europe and between Asia.

[Operator Instructions] The next question comes from Michael Foundoukidis from ODDO BHF.

It's Michael Foundoukidis from ODDO. A few questions also on my side. First -- I'll ask them one by one as well. First, a quick one as a follow-up [indiscernible] I missed it, but could you talk about any impact from the recent announcements of Stellantis both in terms of earnings prospects or investments?

No, we didn't talk about that. But yes, we have been informed that Stellantis has decided to stop the hydrogen activity, which we won't comment strategically, but personally, we believe it's so pity that they take this decision. Having said that, there will be, I would say, an impact on us, but we are having commercial discussions with Stellantis to mitigate the impact. At the same time, you have also seen that other players like BMW, they need to reinforce also they are willingness to develop hydrogen and they are customers of us. Therefore, we will adapt and we will find a way with Stellantis to compensate the impact of the decision.

Okay. Maybe a second question on SG&A. I mean the reach 4.1% in H1, which is a strong performance. Do you see that as a flaw? Or you still see some further improvement from the [indiscernible].

Michael, you should know that in front of me, there is my CFO saying take care in what you are going to say. No, it's never a flaw because it depends also on the revenue development, frankly speaking. But we have always said that we target to be below 4% middle-term. It's an important step, what you did in the first semester. And therefore, we will continue to work on it. But to continue to work on it, not only by cutting the cost, by adapting our way of working, our processes, the tools we are using. Therefore, we want to do something which is sustainable and not only to cut the cost. Therefore, normally, it's -- I would say it's an important step. It's a huge effort from the team, and we want to maintain the effort to continue to improve in the coming years.

Okay. Maybe a last question on my side on the cash generation in H2. I mean, CapEx we are low [indiscernible], presentation you have flagged that you have keep guiding for [indiscernible]. And any [indiscernible] like cash out from the restructuring that will increase in H2 or any significant impact that we should [indiscernible] cash flow generation?

No, I think you got it. That means we have reduced the CapEx massively in H1, higher than the 10%, 5% to 10% we discussed about, but we are still targeting 5% to 10% in H2 in the complete year, sorry. The reason is we should have a bit higher CapEx, industrial CapEx in H2 because of the new factories we were mentioning before. But all in all, for the complete year, it will be a 5% to 10% reduction compared to last year, fully in line with what we need, what we want to do in order to have a stronger free cash flow generation in '25 compared to '24. And we don't have a major restructuring costs impacting the cash in H2. I mean nothing unusual.

The next question comes from Jose Asumendi from JPMorgan.

A few questions, please. Can you talk about the potential of revenues in China that are exposed to Chinese OEMs? Can you comment a bit on the product mix you have in China? How do you see this [indiscernible]? Can you comment stabilization of an OEM [indiscernible].

Second question is on the collaboration [indiscernible] in any terms of [indiscernible] centers, et cetera. How do you improve that [indiscernible] back into the [indiscernible].

And then final one on [indiscernible] if you saw flying there a decent amount of [indiscernible] million to million term [indiscernible].

I will disappoint you because I won't answer to the last question, but I will give you some indication. But coming back to China, today, if we have a look on our sales in China, the share we have with the Chinese OEMs is above 40%, which is much below that their share in the market because they are at 70%, as you know. But in terms of order intake, it's higher than 60%. That is what we -- what Felicie mentioned before, sorry, what we commented that means we are adapting to the change of the market. And I give you again the numbers, but about 40%, a bit above 40% for the sales with the Chinese OEMs in China, but more than 60% for the order intake.

Therefore, we are in line to adapt to the market reality and to gain orders with these OEMs. Very strong momentum with BYD, frankly speaking, but also Huawei, but also Xiaomi and all the others. A big, big opportunity for plastic tailgate because they're all going to plastic tailgate. And you have seen that we have 60% of the Chinese market in plastic tailgate. Therefore, great opportunities on that. That's the reason why we are pretty confident in our capacity to continue to grow in China strongly for the Exterior business and even for the C-Power business because for C-Power, we are now attacking very, I would say, very massively the Chinese OEMs with hybrid solution, what we didn't do in the recent years.

Regarding the German OEMs in China, we -- I mean, frankly speaking, we don't expect them to go back to the market shares they had in the past. I think it's done. We believe they will -- they should be able for some of them to maintain the market shares they have. They are going to launch a lot of new vehicles with dedicated platforms, as you know. But we don't believe that they are going to come back to the market shares they had in the past. And I don't believe that they are going to grow in the coming years, but they should be able to maintain a decent level of production. That is at least the scenario we are having.

Regarding the Chinese OEMs, it was also mentioned by Felicie and by Stephanie. The fact that we are very strong in China, I remind you, it's not visible in our numbers because we don't consolidate our biggest activity in China, which is the Exterior business, but we have 22% of the market, and there are not many Tier 1 having 22% of the market in China and 60% until yet. That means we have a great customer [Audio Gap]

All of our activities are improving basically, which is making us very confident that in the next 3 years, the margin of the company will continue to develop positively.

The next question comes from Christoph Laskawi from Deutsche Bank.

There's only 2 left really. The first one would be on Europe. The [indiscernible] warnings we've seen pointing towards the deterioration of the market in Europe at the [indiscernible], did you see any volatility in production [indiscernible] from changes? That's one.

And then the second question would be [indiscernible] with some normalization [indiscernible]. Where do you see the longer-term run rate? Is there a need for structural measures in Mexico or [indiscernible].

Thank you for your question. Regarding Europe. No, we don't see any big change in Europe in June. I mean June was good for us. Therefore, I don't know what you referred to or I believe I know, but it was not the case for us. And I mean the schedules from the customers are pretty stable, frankly speaking. We don't have a lot of stop and [ goes ] and like we had in the past. Therefore, pretty stable and no big change in June in Europe, the same in July for no massive impact on the production today in our customer mix in Europe.

Regarding Mexico, as you understood, we -- I mean, we are very strong in Mexico. As you may know, we have many factories, all the business groups. And we are just facing 2 effects in the second quarter. The first one is what I mentioned before, some stop or shutdown of production, for example, from Stellantis after the tariff announcement, but also with the Volkswagen, some model changes and when they change the model, but they stopped the production for a couple of weeks. And as it is a customer of us, we have been negatively impacted in the second quarter. But there is no -- I mean, no negative impact to be expected in the coming months in Mexico. It's going to stabilize. As of today, we don't see any need for restructuring in Mexico. We see opportunities as well in Mexico to continue to maintain the level of activity we have or even to grow in the coming years.

The next question comes from Steve Pereira Fernandes from Bernstein.

[indiscernible]

I'm not sure I got it for the capital allocation. I mean, first of all, the footprint, I think it's -- we have a very -- as you know, we have a very big footprint, 250 factories. Basically, we have small factories as well. That means the average size of a factory at OPmobility is about 200 people around, which make us very agile to adapt our footprint. That is what we are doing permanently. I was mentioning that last year, we closed some factories in Germany and in China. This year, we closed the factory in Brussels because Audi decided to stop the production in Brussels. As you know, we closed another factory for C-Power in Chongqing, and we announced the closure of a factory in Germany for the e-Power activity.

Therefore, we are permanently adapting with no major impact on our cost because again, these are topics we are anticipating, and we are mostly small factories and the cost to close are pretty reasonable. And for sure, we will continue in the coming years from mine side potentially to close in some regions where the market is developing badly, but also to open some capacities and Felicie mentioned before what we are doing in Pune this year in India and more to come, but also the fact that we are doubling the size of our facility in [indiscernible] -- I would say, it's a permanent job the team is doing to adapt the footprint. But no big changes, I would say, compared to the past to be expected in the coming years.

In terms of CapEx allocation, we -- as you saw as well that we -- I mean, you know that we have the target to be around 5% of our revenues for the CapEx. We are much better in the first semester because also we had a very important effort on CapEx given the market condition and uncertainty. But the rough number is about 5%. That is always what we say to the market. And in the allocation, we are allocating the CapEx based on our strategy, we mentioned before, that means to be more diversified in terms of geographies and also in terms of customers, and we will continue to do that.

No need for M&A for the company. We have a very solid portfolio in terms of product. We are #1 in the Exterior, and we have a lot of opportunities we are developing and exploring right now. Again, given the strong position we have being in bumpers, tailgate, lighting and modules, which is the unique offer. And in the C-Power and Powertrain business, we are also very, I would say, strongly equipped, and we don't need any further, I'd say, M&A or acquisition. Therefore, there is nothing we have on the agenda. The agenda is using the portfolio we have, the potential we have, continuing to deliver cash and to deleverage the company.

We have one question from Ross MacDonald from Citi. How should we think about H2 2025 operating margins relative to H1 2025? Should we expect any further sequential margin expansion in H2 on better volumes and pricing?

I would say it will depend on the market. S&P is planning or is forecasting a market weaker in H2 than in H1, as you can see. And that is today the baseline we have. And I think it will be the case with our mix in terms of geographies, meaning that we have 75% of our sales in North America or in Europe. That means that we have always a weaker H2 than H1 just because of the summer break. Therefore, we anticipate H2 in sales like last year, like the years before being a bit weaker than H1.

And in terms of margin, we are confident again to have a higher margin in 2025 compared to 2024, but we won't disclose any numbers for H2. We will see. But all in all, 2025 will be better than 2024.

Okay. I think there is no question anymore. Thank you for your question. Thank you for your time as well. And again, thank you very much to the OPmobility team for the very strong performance of H1, and we come back again after Q3. Many thanks.