Sulzer Aktie

Ladies and gentlemen, welcome to our annual results communication. Thank you very much for taking the time and the effort to be here personally. It's a great honor for us. Thank you also to the 27 or so audiences that -- not audiences, but the people who are joining us from remote. Thank you for your interest in our company.

And now 2025 has been an exciting year, I think, for all of us. One thing that you can see in our results, hopefully, here we are, is that we -- as Sulzer, we are serving essential industries. Now this is not just something we are saying because we need to have a nice slogan. It has a deeper meaning. The deeper meaning is that we are producing or we are serving industries that are essential for people and industries, customers, businesses around the globe.

And with industries like energy, the chemical industry, and definitely, natural resources, which in the case of Sulzer is mostly linked to water, we have an underlying growth trajectory because there are more people in the world and more people moving into middle classes. And we also have in the already developed economies, a trend towards using more energy, more chemicals, and definitely also more water.

But at the same time, these industries have a heavy ecological footprint. So whether this topic is in right now or not, we, as a society, will have to find way to have a higher energy efficiency to reduce emissions, to reduce pollution while keeping everything affordable. And that is what Sulzer is doing for our customers in our industries. This is why although 2025 was, let's call it an interesting year, we had an underlying growth momentum and an obvious growth momentum in all of our industries. This has not gone away.

Due to the situation with the volatile political environment and the tariffs and all things that you know very well, we did in some industries, for example, in the oil and gas industry and also in the chemical industry, see that customers don't mind delaying some final decisions for their large-scale projects. If I look at our order pipeline in this industry, it is still growing. Not all the projects were only delayed, some of them were also stopped. But if I look at the figures, it's about 80% of the projects that were supposed to happen in 2025, and I'm speaking about the large-scale projects, have moved into 2026. So they're not dead. They will come this year or next year.

We are still running against an ever-increasing Swiss franc, which for all the Swiss companies that are reporting in Swiss francs, of course, is on the one hand, a continuous fitness training. And at the other hand, of course, does have a certain influence on our results, particularly in sales and order intake because we are really very well distributed regionally. It does have a certain impact, but not such a high one when it comes to our profitability. Thomas Zickler will be speaking more about that.

So let's look at 2025, a little bit more concretely on what we did. Well, we accelerated our strategy implementation. And our strategy is a rather down to earth, not so complicated strategy. It doesn't mean it is easy to implement it because it's thousands, many thousand different steps that we are taking. We concentrated on our markets and on our customers. And this means, for example, that we invested in our sales force. So while we were very cost conscious, we also consciously invested in our sales force and in the upgrade of our sales force. We also upgraded or invested in supporting technologies for commercial excellence. And you see it a little bit in our margin development. We learned to find a price point better than in the past, and we are on a journey to improving that.

We have made important steps, but we are not there yet at all to stop having a fragmented approach to our customers to go as a One Sulzer wherever it made sense. We accelerated in the area of effectiveness and efficiency, which we summarize under the term of Sulzer Excellence. This is quite a fundamental culture change in Sulzer because we come from a history, a successful history that prides itself almost only on innovation and engineering excellence. Now this is still important for our company, no doubt, but it has to be paired with being effective and efficient from the first moment we analyze a market until we do aftermarket business with our customer.

We reorganized Chemtech. We did not restructure Chemtech. It's reorganizing. That is an interesting word because we -- or interesting plain word because we believe that Chemtech is going to come back to a good level. This is also why we invested also in Chemtech in more salespeople and in an upgrade of the salespeople. But at the same time, of course, we cut costs wherever they did not contribute to value creation or not enough.

And what we also did, and that was very important for Chemtech, we streamlined innovation. What do I mean with streamlining innovation? We made sure that our innovation is set up in a way that it really serves market needs and customer needs. We still have some budget for blue sky research, but most of it is now really mid-term oriented and also research for our core business, which is focusing on purification and separation. We upgraded and developed our supply chain, finding the right balance between resilience in this volatile time and purchasing from best cost country.

Also, this is a journey, but we made nice progress in it, and we did report a good contribution to our profitability. And I am very proud to say that we have improved in on-time delivery. We have improved in quality, and we have improved in safety records. Now for you, that might not be so important as a very financial outlook, but it shows an underlying -- again, an underlying quality improvement in the company, including the safety record. That is why I mentioned it. And all of this leads that we can report highest reported sales, order intake, and profit.

Now our CFO, Thomas Zickler said, and you have to say, Suzanne, currency adjusted and also, sorry, in constant currency and also adjusted for acquisition and divestment. And yes, he's, of course, right, like mostly, but it is also almost -- we could almost say nominally. But we are correct, right? Yes, of course. So I will go quicker through these figures because Thomas will go a bit deeper on that.

We had an order intake of 2.1%. We had strong growth in aftermarket and in what we call noncyclical or water, which is more than 60% of our turnover. Our business of smaller projects, short-cycle projects grew nicely in all 3 divisions because this is the type of decisions that our customers like to do also in those volatile environments that we are acting. And we did have some large projects, customer projects that were delayed, particularly as I mentioned already, in oil and gas, in the chemical industry, and also some in what we call the new technologies. We still have order intake above sales of 1.06%. So the company is still definitely growing. And what is also growing is the customer pipeline.

Now a pipeline -- and I don't mean the technical pipeline -- but, I mean, the order pipeline. Now an order in the pipeline is -- a project in the pipeline is not an order, clearly. But if you don't have a full pipeline, it's probably difficult to have orders. So it's like an early sign. We are happy to say that we grew our sales, and we did grow them with commercial discipline. We increased our margin. We were not buying sales and we're not buying order intake. And so we increased our profitability figures significantly. As you see it here, Thomas will speak about them more.

These are our figures at the glance. I would just like to highlight earnings per share going up very nicely and also our EBITDA, which is a record EBITDA. We're a little bit lower in free cash flow, in line with expectation. Thomas will speak about it more. Here, you see the relative development. Again, what can I mention, yes, we upped 140 basis points in the return on capital employed. The return on capital point is a very important figure for us and the earnings per share went up 19%.

If you look at this slide, we look back a little bit for the last 3 years. And the summary of this slide is the strategy is working. The strategy is working. You see that our sales grew on the average 10%. We increased the EBITDA since 2022 by more than 700 basis points, and we really upped the return on capital employed, one step after the other very systematically. And this is how we are running Sulzer with a lot of fire in our heart and at the same time, very systematically, it goes together actually quite -- it goes quite well.

Given this very positive development and because we are really convinced that independent of how good 2026 is then really going to be, our company is on the right way forward. The industry that we are serving are growing and what we have to offer is more needed than ever. And at the same time, internally, we are becoming better. So we increased our dividend again by CHF 0.50 if it is approved by the general assembly to CHF 4.75 per share.

So ladies and gentlemen, now let's look a little bit deeper into our figures with our CFO, Thomas Zickler.

Thank you very much, Suzanne. So good morning and good day also from my side. A lot of well-known faces I see here in the room, and thank you also for dialing in. As you heard already from Suzanne, we had in 2025, quite a good year when it comes to our profitability, but also to sales.

Before I go into the details of the year 2025, let me say one thing upfront, and Suzanne mentioned this already. When you look at our order intake and sales numbers, you have to have the following thing in mind and Suzanne stressed that I noted when she's doing her presentation that we need to be aware of the FX impact. So when you look at our order intake and our sales, on both KPIs, we have around about CHF 190 million negative FX impact. So in other or in easy words, our order intake and our sales would have been around about CHF 200 million higher, excluding the negative FX impacts.

Let me talk about our growth. We have a very robust growth. And when you look at our share of the aftermarket business, over the last 3 consecutive years, Services has grown double digit. So we have achieved over the last years that our aftermarket share has grown to 62%, which makes us really a highly resilient company. Why I'm addressing this? I'm addressing this because when I have to characterize the year 2025 in 1 or 2 sentences, it's that overall, I will say, smaller and non-cycle business is running very well. However, the larger orders, this was the topic of 2025, and I'm not going into the story of the geopolitical uncertainties. But you see here was then landing at around about 2% plus order intake and 5.6% plus on sales, that we are really a resilient company.

When we look in Q4, you have seen on a quarter-to-quarter comparison, so Q4 2025 to Q4 2024, that we had by the end of the year 2025, our order intake growing by around about 12%. So you see that towards the end of the year 2025, we really picked up in our business development. Also, when you look at our order intake margin, we haven't really bought any orders in just to get order intake. And this is very important. I'm saying this for now 4 years in a row. We are getting our order intake with a still increasing order intake margin. And you see this compared to last year, still 70 basis points higher order intake margin.

And as said by Suzanne, we have overall talking about the whole Sulzer Group, still positive book-to-bill ratio of 1.06. So talking about our EBITDA profitability. It is indeed a record profitability over the last at least 20 years. And when you look at our profitability at the EBITDA, you see it's CHF 556 million. And what you have to know, and I mentioned on the first slide that we were seeing headwinds from the FX side.

On our EBITDA, we had a negative FX impact of around about CHF 40 million. So to say it in other words, our EBITDA without this negative FX impact would have been close to CHF 600 million or somehow around CHF 600 million. When we talk about the success, why is our EBIT and EBITDA increasing so much? And you see 140 basis points compared to last year.

It is on the one hand side, yes, we still have very favorable markets. We are growing in most of our market segments, except of Chemtech, where I go a bit in the details later on. But we have also a lot of success from our rigorous improvement of our Sulzer commercial and operational excellence. What do I mean by this? I really mean that we have improved our production efficiency, our project execution efficiency. We are much better on the supply chain side. And we are much better on people excellence. We discussed about getting on the sales side more, from the farmers to the hunters, changing the company. And here, you see in the numbers, the success. This is what I want to address here.

On the return on capital employed, I think the story is very simple because, yes, we have a higher EBIT because of all this what I explained. And on the other hand side, we have more or less a stable CapEx and, say, efficient use of our capital. And this means higher EBIT, stable capital, that the return on capital is growing up by 140 basis points.

So now let me come very proudly to this slide. This is basically a reflection on the period when Suzanne and I started beginning of 2023, you see the total shareholder return of Sulzer is 121% compared to the Swiss Performance Index already also including the dividends with 33%. So we really have outperformed the market. Also when you look at the tables with the dividend and the proposed dividend for the year 2025, you see we increased the dividend then finally by almost 40% over the last years.

And market capitalization, I checked just 5 minutes ago, our share price, we are more or less flattish compared to yesterday. So you see that our market capitalization from 2023 to end of 2025 went up to CHF 5 billion. When you take our share price as of today, we are close to CHF 6 billion. So I calculated we are currently at CHF 177 million. If we would have been at CHF 178 million, we would be at exactly 6.0 market capitalization.

So let's go a bit deeper into our individual divisions. When we talk about Flow, what is the overall story? In Flow, we had in 2025, a really good development on the sales side and on the profitability. Look at the profitability increase. Flow increased by 160 basis points compared to last year when we talk about EBITDA profitability. They are currently standing at 13.3% EBITDA profitability. And as I said, in Flow, we have also seen a lot of operational excellence measures really realizing in 2025, helping to optimize the cost setup, helping also to improve the profitability by also, in parallel, increasing the sales.

And when I talk about the sales, you see that sales in Flow increased double digit by 12.3%. And when you look at the sales increase, you see that we have here one BU really standing out. This is energy with over 20% sales increase compared to the prior year. But we also have had a very good sales development in the water and in the industry area. So overall, it is really on the sales side, on the top line, a success story for Flow.

Let me also talk a bit about order intake in the Flow division. Order intake is a bit of, I call it, a more mixed picture. Why is it mixed? Because let me start with Energy. In Energy, we had in H1 2024, one large big order -- elephant order from the Middle East with USD 100 million. And these large orders, they haven't come in, in 2025. This is the overall storyline for 2025. So when you look where Energy landed by end of the year 2025, Energy landed with around about minus 3%. So minus 3% without having the USD 100 million large order means if you would have taken out this one order, energy would have been at least plus 5% and more. So you see that also on the energy side, we have a very, very good base business, which is reflected in these numbers.

What we see also on the order intake side in Water, that on the Water side, we grew double digit. As you know, we are not announcing the numbers separately for Water and for Industry. So let me leave it here with the statement, Water grew double digit in 2025. And annoying Water grew double digit, you maybe have seen in January, our announcement where we announced a water treatment center of excellence, combining all our expertise, which we have in our company and even -- to even focus more on the further development of the water and wastewater treatment.

As I said, when you look into Flow, you see a really very excellent improvement on profitability and sales. And as explained on profitability because of a high base with large orders, a bit of a mixed picture. When we look in the last quarter of Q4 2025, we have also seen in Flow, a very positive development. Flow had in Q4 compared to Q4 the prior year, a plus of around about 18%. So you saw also in Flow an uptick when it comes to the business performance in 2025.

Then let me go to Services. Services is also really -- I'm so proud to tell you all these stories. It's a new record result when it comes to profitability. You see services, they grew by 150 basis points. So there's an internal competition, 10 basis points lower than Flow, but they grew with 150 basis points on the profitability. And what is the reason for this? Yes, also operational excellence. But as I have mentioned on the first slide, services is growing for the third consecutive year in order intake and also in sales. And you see it here in the headline, we have done in services a lot of investments into growth. Let me just give you an update of what have we done in 2025 for this growth.

So in services, we opened a new service center in Argentina for the market there, for whole Latin America. We have bought in January a company called Davies and Mills for the Middle East in Bahrain. This was basically an EMS company, where we now with our full services network, we expand this. We use this as a regional footprint to tackle much more the market in the Middle East for services because you know more than half of the services business is coming out of America. This is a very important strategic move to also grow services more in the Middle East region.

And last but not least, we have invested in the U.S. in our, and I wrote it down, in our largest turbomachinery center in North America. And we further invested to extend the production and service capacities there because of the still highly booming U.S. markets when it comes to pump services and turbo services. Why is it growing so much on the services side? Story is very simple. We have on the CapEx side, a bit the hesitation, the delays, the postponements from the customers. But we have also, on the other hand side, a lot of equipment which needs to stay really reliable and safe for the customers. And here, services is on its way with upgrades, modernization, repairs, retrofits to really ensure that all the customers have a reliable energy, yes, equipment available.

That's from my side. I forgot one point, also order intake because I got this question this morning in some analyst calls. They said, Thomas, what's going on with services? The Q4 to Q4 order intake is only growing -- is only growing by 3.8%. I tell you the story. The reason is very simple. Last year, in Q4, we received a larger order in the region Europe, for South Africa for a big energy provider there. And when you have then the like-for-like comparison, Q4 to Q4, you have the impact that then the region Europe and Africa, they were in the minus because of this high base impact last year. But believe me, still Americas, and you saw it also in the e-mail, which we shared this morning with most of you and in the press release that Americas is still growing almost by 10% and also EMEA by more than 25%.

Then more challenging environment, Chemtech. Chemtech, what is here the headline is really the overcapacity, especially the refining overcapacity on -- sorry, it's not working. Okay. Chemtech, we have the overcapacity, especially in the refining area for the refineries in China. But we have also the overall, yes, weak market sentiment in the chemical industry. When I talk about orders in Chemtech, we have seen a mixed picture. We are missing here also the larger orders, which we have received in the past because of this uncertainty in the markets. So we have basically in this smaller projects, short-cycle base business, we have a reasonably good order intake.

We also have grown in Chemtech, our aftermarket services share where we go now because the equipment is there more on the services side, in the tower field services, turnaround services, and so on. So here, the strategy is really working very well. We have, on the Chemtech side, also achieved when we talk about order intake. And you know that we had our footprint mostly coming out of China and Asia. We have reduced the share of, say, orders coming in from Asia from around about 50% to 37%. So this is a reduction by 12% of the Asian share. And on the other hand side, we have increased the share in EMEA by around about 11%.

And some of you remember, we are going to open a service shop in Saudi Arabia for Chemtech this year, by mid of this year. So you see also from the numbers, our strategy a bit, going out is the wrong word, relocating our focus from Asia, which were historically grown more now to the Middle East. This is working out.

Last word to Chemtech on the profitability side. Yes, the profitability on Chemtech went down by 2 percentage points. But here, and Suzanne already addressed it, I really want to explain to you, this is a very value-accretive margin. And why I'm saying this? Because, yes, the profitability went down because Chemtech lost 13.6% of their sales. But on the other hand side, we have done a lot on operational excellence on the Chemtech side. We have done a reorganization where we refocused on the regions, India and Middle East and combined. We also have, on the R&D side, focused more on market topics.

We have improved our supply chain by centralizing a lot of functions. And we also merged 2 BUs within the Chemtech organization. And we did cost cutting, cost cutting in the headquarter, cost cutting also in China, where basically, we dismissed more than 200 people in our factories in China. So all in all, you see that with this 2% decrease in the profitability for Chemtech, this is a very good result, seeing the sharp decrease on our sales.

And on the other hand side, this means when we achieved this year on the Chemtech side, that they are slightly going up in 2026. This is what we expect, that then you have a much lower cost base, and then you will see that we have also an acceleration coming on the Chemtech side when we talk about profitability.

Outlook also a bit with the Q4 to Q4 comparison. Also in Chemtech, we had around about 18% plus in order intake Q4 compared to Q4 2024. What is very important for me to address is that especially in MTCS, we had on a quarter Q4 '24 to quarter Q4 '25, an increase of more than 13%, which indicates that we most probably have seen the end -- the light at the end of the tunnel.

Then let me go to the EBIT and net income. EBIT, you see here with 22% plus. I think story is the same. I don't want to repeat it. It is that we really were able to expand our gross margins, rigorous cost management, and implementation of Sulzer Excellence. Also here on the EBIT, I want to address the FX impact. Our EBIT would have been around about CHF 36 million higher if we wouldn't have had a negative FX impact on our EBIT.

Net income, kind of the same story. Why is net income not growing so much than our EBIT in percentages, mainly, say, 2 reasons for this. We have because of the lower interest rates globally, lower interest income for Sulzer. And also since we earn more and more and get a higher and higher profitability, finally, we also have to pay higher taxes, and this is the reason why we are a bit lower in the growth on the net income side.

Then let me talk about our cash flow. Cash flow, most of you remember when I gave updates, I think cash flow really came in, in line with expectations. Why I'm saying in line with expectations? Some of you said, hey, Thomas, why is the cash flow not going up to almost CHF 300 million? Explanation is very simple. Please recognize that in the year 2025, because of Chemtech delivering no cash flow -- free cash flow because of their business situation because they had to invest in one-offs. They had to take care of their profitability. We have missed completely the contribution for Chemtech for our free cash flow.

Okay. Well, thank you. Yes. And with this, we would have been close to CHF 300 million with a working Chemtech. However, when we look in our free cash flow, you see that we are CHF 22 million less despite the fact that we have higher tax payments and lower interest income, and just to drop the numbers, tax payments are around about CHF 10 million higher and lower interest income is around about CHF 7 million. So alone, when you add these 2 ones, you see that we can explain the lower cash flow.

Now it's working.

So balance sheet and net debt-to-EBITDA ratio. What I did this time, I changed a bit the layout on this slide and the content because some of you were almost always addressing, Thomas, why do you show not just the net liquidity of Sulzer, and this is what we have done here, and we do it in the future. You see that when you talk about our cash and cash equivalents, and these are the cash and cash equivalents, which belong to Sulzer. This is not including the Tiwel cash. You know that we have the dividends which we basically keep in our house, and this would then increase the cash. But this is only the cash which you see for 2025 with CHF 640 million. It's only our own Sulzer cash.

And on the other hand side, the debt, nothing has changed. Why is the debt around about CHF 30 million higher? Very simple. Last year, we had an expiring bond of CHF 300 million, and we replaced this bond with 2 new bonds in the total amount of CHF 330 million, and this is why we have CHF 30 million more debt. And then when you do the calculation, net debt divided by EBITDA, we have then a net debt in 2025 of CHF 555 million and an EBITDA of CHF 556 million. So you see it's 1.0x. And when you compare this with last year, it's basically a no change. It's a stable 1.0x on the net debt side.

Okay. So now my last slide. Let me talk about the dividend. Suzanne already addressed it that we are proposing for the AGM to increase the dividend to CHF 4.75 per share. Just let me give you some reasoning. Look at the left side of the chart, we started with 2015 with a dividend of CHF 3.50 and you see then a lot of dots. And then until 2021, you have here still CHF 3.50. And you see in the last years that we steadily increased the dividend because we are, as you know, on our Strategy 2028, we are focusing on organic growth. We always said that we are not doing big M&A transactions, but we are also sharing a portion of our success with the shareholders. And this is why we have steadily increased the dividends.

What is important because some of you already addressed, is this too high or how does it look like? We have a dividend policy within Sulzer, which stays between 40% and 70% of our core net income is in our dividend policy, what we can pay as dividend. And you see it here on the right side, in the last bullet point, we have a dividend payout ratio of 50%, in this range between 40% and 70%. So we are still on the lower end side of the possible range of the dividend. And I think with this, you see that we are very carefully also deciding on the dividend increases, and we are focusing more on a steady development in the future than increasing the dividend onetime by higher amounts.

With this, I would like to hand back to Suzanne and then ask -- should we do the question? No?

No. I still have a few things to. But as a matter of fact, we have already 45 minutes, so I will try to really stick to the most important things and not mention every word on the slide. I'll try to be short, but still, yes, interesting, I hope.

So these are our industry spoke about it. The change that we have in our understanding of Sulzer is -- well, it is a fact. We just see it differently now is that our divisions serve by and large the same industries. And in many cases, they serve the same customers. This is something that we have started to leverage in 2025 and that we are going to increasingly leverage going forward. That does also require some internal changes. I'm not speaking of a reorganization, but of the way we are handling business demands from one customer to several divisions. There we are sometimes a bit our own enemy.

Yes. So let's look at energy, our #1 market. We have spoken about it that large projects, exploration, large extensions, rather a little bit subdued. We do expect in 2026 to get some large orders coming through because momentum is really still there, both in the Middle East, but also the large American companies do speak about producing more in the area of oil and gas, and not less. What stays is that these operations, all energy operations have to be safe and have to be clean and compliant. And this helps our business because what is it that we are doing, we are helping to make the processes and the infrastructure of our customers more efficient and cleaner and better.

Power generation is the topic. We need more electricity around the globe, which also leads to the fact that, for example, old gas-fired turbines are coming back up into operation after having been overhauled very often by our service division. The chemical industry, new capacity is indeed subdued, except for some specialty segments, purification and separation, very, very high-level purification and separation, for example, for semiconductors, for example, for batteries and other high-tech applications are increasing. If you have infrastructure, it has to be safe. It has to be compliant. It has to be energy efficient. And if you have an aging infrastructure, this is even more the case. So this is where Sulzer has a growth potential also short-term in the chemical industry.

If we look at water, that is a simple story. Water is like power production, the topic around the world. We need more water, cleaner water. We cannot take, for example, for mining more and more groundwater out. We have to take care of our water, and we need more. And so industrial and municipal wastewater treatment is very important. Water in mining, you see it here in the picture, is a big topic. Desalination is coming up more and more. And water infrastructure also to transport a lot of water, for example, from the sea to a desalination plant and then to a city is an increasing business. We are looking forward to double-digit growth in water as well.

New technologies, mostly Chemtech, not only. There are some uncertainties. But what you read in the news right now about new technologies does more reflect the political speech, let's say that, than what we do see in our market. We clearly see improved interest and, hopefully, large projects in 2026 when it comes to bio-based plastics. We see it in the Middle East and in Asia, not in the United States and not so much in Europe. We see carbon capture still being there, but it is clearly a niche market. It depends on the regulation and, also, let's say, on the social license that, for example, large oil companies want to have or don't want to have when they invest heavily into gas-fired power plant for data centers in the United States. What we see growing in many regions is alternative fuels, be it sustainable aviation fuels, be it bioethanol.

So what do we expect for Sulzer in 2026? We see a solid order intake. It is most likely going to be somewhat muted in the first semester. And there, we are also suffering from the comparison base. If you look at our Q1 order intake, the base is around about CHF 1 million -- CHF 1 billion. So if you have a CHF 50 million order in March or you have it in April, makes a difference of 5 percentage points. This is why we really don't think that the Q1 order intake has too much of an information value. So we see not so much momentum in H1.

We see very good momentum in H2. We are not just saying that because we hope that this is the case, but we see it in the pipeline of the large projects. And the communication of our customers when these orders are going to be placed in a legally binding way. We do see for all 2026, continued growth in aftermarket in small-scale project and in the water. And we do see an upwards trajectory for our new technologies in most of the regions of the world.

Trying to summarize it. Our markets are growing structurally for the reasons that I mentioned at the beginning of my presentation. The macroeconomic situation creates a certain volatility, which leads to our customers maybe hesitating a bit longer than they would otherwise for projects that they are planning to do. At the same time, if we look at what is happening with population growth and so on, the global opportunities are there for our company and the challenges that our customers have in order to have safe, clean, less emission, and so on is also driving our markets. So we believe that Sulzer is clearly on an upward trajectory, potentially not every quarter.

So what do we do in 2026? We accelerate and intensify our strategy implementation. It is not so easy because this company is successful. And we are now really changing the ways that we are doing certain things, and we are making it better and more efficient, but it's still a change. And human beings are not so comfortable with change. But we are pushing that through. We strengthen our aftermarket business. We are further streamlining our order winning process. We are too slow and too complicated when it comes to order winning, when it comes to tendering and when it comes to order specific engineering. And we are moving towards integrated customer solutions, solutions for specific industry centers like water, where all of our 3 divisions are selling into right now, still mostly in a fragmented way.

Again, this requires to change how we are doing things. We are going to push that forwards in 2026, which also means One Sulzer. Our fragmented way of accessing customers, I put it in a positive way. There is a lot of potential for growth if we eliminate the fragmented way of accessing our customers while still staying very effective, no, becoming more effective and efficient in how we are doing our processes.

This leads us to the following outlook. Now giving an outlook these days, ladies and gentlemen, is not that easy. And this outlook stands unless we -- what I want to say is this is a quite significant information. There would have been some reasons to give you a higher outlook. But it is difficult. The visibility is rather low because of the geopolitical situation. So we are guiding an order intake of 1% to 5%. We are guiding sales for 2% to 5%. And we do see an EBITDA margin that is further improving to about 16.5%. Very short. I have been told you like these examples. So I will do it, but I'll be 3 in 5 minutes, I promise.

So we are still making traditional energy cleaner and less expensive and readily available. And that will continue this business for a very long time because the world needs more energy. And you see an example here where a customer of our thought they had to replace 2 full compressors, which would have shut down their offshore operations for apparently several years. But we came in with our retrofit solutions from the Services division and could upgrade the compressors. We contributed to less -- to a smaller environmental footprint because the energy consumption of the operations is now down 14%. And for the customer, most importantly, we could -- the project time was strongly reduced.

This is really engineering. When we speak about repair and maintenance, it sounds so easy, but this is real engineering work and Sulzer is very good at that. Now we still speak about keeping the energy transition moving because it is still moving almost worldwide, and this is a nice example for a bioethanol plant in Brazil, where we were the main supplier and the feed for this plant is biomass from waste, very important.

Now the water treatment, the Global Center for water treatment, Thomas mentioned it. We have launched it now 2 months ago. This is following the strategy of having industry-specific offers from a One Sulzer perspective. And here, very specifically, we have around the globe quite some very, very good, but smaller companies active in water treatment, who are regionally well established, and now we are opening our sales channels to them globally, and we expect very nice growth from the water treatment.

Last but not least, we are scaling our global capabilities through shared business hubs. We have 4 business hubs now in Mexico, in Madrid, in Pune, and in Suzhou for the type of work that can be very easily standardized and automated mainly in some business functions and in the finance function. It has to do with sales support and tendering support and, of course, supply chain support. This is another important building blocks to support a One Sulzer approach in our back office processes. This is one example from the excellence front.

Let me finish, ladies and gentlemen, key takeaways. We see further order intake and sales. In a volatile market, in the areas that we have grown nicely already in 2025, but we do see some large projects that are in the pipeline, this growing pipeline that we have that will materialize in 2026. We are working together to strengthen the foundation of Chemtech so that it is very well prepared to pick up the growth that we are expecting this year, growth compared to 2025. We don't expect a full recovery to the level of 2024 in this year. But as Thomas said, it will also then improve the profitability significantly.

Sulzer Excellence is the key to making Sulzer a top industrial company. We are going to intensify and accelerate what we are doing there with also an increased excellence organization that works hand-in-hand with our business to improve the many, many good things that we are doing. So our strategy is working, and we push on with this strategy by staying very adaptable to what is going on in the world.

Thank you very much, ladies and gentlemen, for your interest. That is what we wanted to present to you looking back and looking forward in 2025. We are now going to take questions, if you have any, Thomas and I together. Thank you.

Okay. Patrick Rafaisz from UBS. Is it -- how many questions? Can I go with 3 to start?

It depends how complicated they are.

Okay. Let's start with 2 first. One is on the order intake margin. And Thomas, you mentioned the 70 bps improvement. But if I look at H1, H2, H2 was actually down, on my calculations. Can you elaborate on that? Is that mostly mix? And how should we think about the order intake margin in '26?

I'm thinking about the answer, but I'm like always, very transparent. The order intake margin when you compare H1 to H2 is a bit lower in H2 because we had the difficulties with our order intake to really come to the guidance to the end of the year. So this means towards H2, we pushed really on the order intake side to get some more orders in. And this is the true story. It is no business development, no change on the business side. It's just that really we then landed at above 2%.

That is indeed very transparent. Thank you. Does that maybe also explain the softer guidance for H1 or the more muted guidance because you may be brought forward some orders?

No, it did. It was not to a large extent, definitely not. H1 is simply that when we look at our pipeline, we believe that the large projects will rather come in H2. Many of our customers have no reason to decide finally in H1.

Okay. And then a question on the margin expansion. It's very impressive, adding another almost percentage point or thereabouts in '26. If you allocate that to the 3 divisions, I mean, Chemtech you already mentioned will definitely improve. But how do you think about services and Flow versus '25, right?

For 2026. Well, I definitely expect a further margin expansion in services because their relative increase was less than in Flow. Definitely still expect a continuation of the margin increase, maybe at a little bit lower level, not -- well, rate in Flow. But we are not buying sales that is very -- and not buying order intake.

Yes.

The margin, of course, also not only depends on the price, it also depends on the efficiency of our operations production, and we will work heavily on the efficiency of our operations.

Can I go for one more?

If it's a short one like that. Okay.

It's a short one like that. I just -- you talked about the large orders for the second half. Just trying to understand how much do you build in? How much optionality do we have if all goes well versus the guidance?

We are business people, not analysts. So we don't do quite such calculations. That was meant in a referent way. Just really also like Thomas answering how this really are. I can just -- I know you want the figure for your thing. What's now?

Maybe I take over.

Yes.

For the guidance, which we have given on order intake, we have planned very conservatively, which includes I wouldn't say almost no larger order, but say, the big orders which we are planning for and which are in our order intake pipeline for H2. These orders are not included in this guidance because of the geopolitical environment, and this was also what Suzanne addressed when she talked about the guidance. These uncertainties are too high that we are really able now to forecast for the next 12 months or next 10 months on our order intake coming in.

Christian Arnold from ODDO BHF. On the margin, EBITDA margin, I mean, you achieved the record high EBITDA margin, 15.6%. Now you are guiding for quite a step actually in '26, 16.5%, which is impressive. Thinking about your order intake margin increase of 70 basis points, sales growth of 2% to 5%, which probably leads to some operating leverage. And then think about the Chemtech division, which you refocused and probably also achieving higher margins. I mean, we could even think about a higher margin than the 16.5% you are targeting despite the fact that the level is very, very high. So what could go against you? Are these higher personnel costs? Are these product mix effects, which we have to think about? Yes.

Well, one thing that theoretically could go against us is a tightening in the raw material situation with higher costs, let's say, for steel, for example, that could be -- we don't -- we see it only a little bit right now. We don't see it in a significant way. That is one thing. We still believe that to go another percentage step up, percentage point, is already quite ambitious. It is true, some of the measures that we have taken in 2025 and also have costs will have an effect in 2026. But then you never know what's going to happen. So we give our best guess, not estimate, but assessment.

Yes. And also, we want to be in line and sustainable with the last 4 years, where we have almost every year guided with 1 percentage point growth. And we think, as Suzanne explained, we think also for 2026, we can do it. However, and I don't want to repeat everything, the geopolitical uncertainties, just think about what is happening with Iran, what is happening to other topics. I think the 1% with our excellence, which we do, we are quite comfortable. And the rest, let's see how it really develops during the year.

Okay. Thank you very much. And maybe just a small question on CapEx. What do you think what will you spend in '26 and '27?

I have to say...

Yes. Sorry, same levels. Thank you very much.

Alessandro Foletti of Octavian. Can I ask you also 2, 3 questions, please. Maybe first on the H1, H2 split. I think you guided in the press release that H1 will be lower than H2. But the backlog entering the full year is quite high, like basically like last year. Why still this H1 weakness somehow?

Our guidance was related to order intake, not sales.

Okay. So that means on sales that we should not expect this huge H1, H2.

Yes. Alessandro, sales is always much more stable coming from the order backlog than order intake. But our message was addressing on the order intake, where we see really from especially the larger projects in our pipeline that they are coming in the second half of this year and not in the first 6 months of this year.

Okay. Thanks. On the profitability again, in Flow, particularly, I think Ms. Thoma, you mentioned that you did have some help from the market to increase the profitability there. Can you dissect how much of this improvement is your own actions and how much is market tailwind?

What do you mean with help from the market?

Good markets mean good prices, means good margin.

Well, the markets are quite competitive in the Flow area. We did definitely have good markets in Water. I cannot dissect it per se. Maybe you can.

No, it's very difficult. What we have on the Flow side, especially is still a market where we have a bit of a pricing power left. It is much more competitive than it was whatever 2 years ago, for sure. And then this combined with our, say, cost measures, this enables us to get the profitability up. But on the pricing side, I think we are very disciplined. We have new pricing tools. We are using here a bit more sophisticated tools. But overall, yes, the markets, they are supporting this development, but I cannot really give you whatever XYZ percent.

All right. Maybe last one on the large orders again. There were some discussion with you during the year, last year about carbon capture. Now you mentioned it, but I'm not sure that there's still the levels. Are they still around these projects? Are they not around, where?

So we have a large project in 2025, the Teesside project in the U.K. And we are speaking about several larger carbon capture project interestingly in the United States. Why? Because they are going to use so much more energy, they will need the gas-fired turbines to do so. And there is not only -- not only a question of whether there is political support for the big AI companies. It's also a question of the social license. I mean there are still many people also in the United States who think we should reduce our CO2 footprint even if the government says something different.

And in that sense or in that playing field, for the moment, we see momentum. You see in my long explanation that I'm also not completely sure about it, but we do see momentum in carbon capture. Also in the Middle East, we do not -- we see discussion in China, but that will come much later. We do not see it in India.

Right. But is it correct -- I understand correctly that these hyperscalers or data centers, they would do it voluntarily basically?

Possibly. Possibly. Well, voluntarily in the sense that they like to do it, I don't know. But they also -- they already do have some push for that.

Without the regulation.

Without regulation, possibly, yes. That is the discussion they are having with us. Are they -- with very clear projects. Are they pushing it through, that I cannot guarantee.

Right. And your assessment of the competitive landscape for those projects?

We are definitely the market leader when it comes to large-scale carbon capture projects.

If I remember correctly, you mentioned of the 9-month orders that you have a couple of bigger projects in the pipeline where you hope to let them materialize before the end of the year. Can you tell us if some of them materialized and the projects you see now, the bigger projects coming rather in the second half of these new projects? Or are they still the same and wait another half year.

Very good question. They are partly new project, but it is also true that many of them have moved into 2026, even H2. Some were also lost. I mean I can give you a bit of feeling for our Energy and Infrastructure business unit. In September, we were still speaking about project volume. We wouldn't have gotten all the projects, but in the order of CHF 300 million, of which we maybe would have gotten half or 40%. And of those, CHF 220 million have moved into 2026 and CHF 80 million were lost, but there are some new that have become more concrete so that they -- they weren't that concrete in September, so, I didn't speak about them.

So all in all, that's what I was trying to say with my underlying momentum. There is a strong underlying momentum when it comes to energy generation worldwide, not only in power, also in oil and gas. We will -- would be very amazed if we wouldn't have any orders in the next 12 to 16 months that are really major, most likely in -- very likely in the H2.

Arben Hasanaj from Vontobel. My question would be around the outlook for the service business for this year and also next 2, 3 years. I mean, if you look at the CapEx budgets also in the area of data centers, they have become even more bullish. So I was wondering how confident are you that this kind of momentum continues and maybe even still double-digit momentum. Yes, I was wondering, how do you see the market this year and next 2, 3 years? How long can this super cycle last in your view?

We are very positive over the next 2, 3, 4 years because of some underlying drivers.

Yes. Let me add to this. I just want to manage a bit the expectations, and you know me, in the meantime, I'm a bit more conservative on the expectation management and then overachieve, then vice versa. So you said double digit in the next years. If we can agree mid-high single digits over the next years, I'm fine. But I think we cannot commit on double-digit growth over the next year.

No, that was not -- that was an ambition and expectation. It was not an additional guidance. Thank you for raising that.

Any other questions? Well, then we come -- no, then we come to the -- yes, exactly Marlene coming in with maybe questions from.

Yes. I have 2 questions from Fabian Piasta from Jefferies. The first one is, can you please provide more details on specific measures taken as part of operational excellence program? How much headroom is there left for improvement?

There is a lot of headroom left for improvements. I cannot quantify it. In my assessment, we have only started in 2025 in a very systematic way with operational excellence. Now operational excellence is also many, many, many small steps. So it does take energy and it does take time, and it is a continuous improvement that we will have and not a step change. But we are definitely at the beginning in many dimensions.

Thank you. Second question for Thomas. Can you provide more details on the strong Q4 order intake? Does this mark a trend reversal or is this more seasonally driven with respect to your guidance implying a more muted first half of 2026 versus second half of 2026?

It's the latter one. It's more the year-end, the strong Q4, which we normally in the industry have every year. When with the customers, we push for the year-end closing. So we had very strong numbers in 2025, and this doesn't indicate a trend. This is why we are so cautious with our H1 order intake guidance. If it comes better, then it comes better. But seeing it, I really would say it's a normal process which happens every year in Q4, where the industry as well as the industrial companies push for order intake and also for sales in the year-end race for the Q4 numbers.

Which also means we have already done it in 2024. So the comparison basis also Q4 in every year. So -- right? But I would also not take it as a -- not yet take it as a fundamental trend change, too early.

Fabian Piasta says, great. Thanks. And this has been -- no, wait a second. Sorry. I have another question from [ Loui Bion ].

Could you give us more details on your operational capacity in North America for the energy market? If the gas turbine maintenance market experiences a boom, will you be able to keep up with demand?

Okay. Our business is not linked to the new turbines directly. As you know, the new turbines, they now have delivery times of 4, 5, and 6 years. Now that does still impact our business positively because in many cases, let me say, it a bit old turbines are being dug out or, let's say, reinstate with reengineering and put into operations again because that goes much faster. So taking care of the older and the old turbines is our business, a very good business because also the new turbines become old within a cycle.

So indirectly, we will profit from that. Definitely, we see it today. And yes, we have invested in our operations in the United States, also capital investments, which our American colleagues were very happy about because they haven't gotten that much over the years. And also, we have improved our operational excellence, which also means that you can do the more things, more volume with plus/minus the same operations. So yes, we are going to profit from that, but not in an extreme way because there is this distribution over time in our business, which is good.

This has been the last question online. Thank you.

Thank you very much. So again, thank you very much for attending online, and thank you very much for taking the time and the effort to come here, is much appreciated. And we are happy to invite you now for a small uncomplicated lunch like every year and continue our conversation. Thank you very much.

Thank you.

Good morning, and welcome to Sulzer's Half Year 2025 Presentation -- Results Presentation. Welcome also to Thomas Zickler, my colleague and the CFO of Sulzer. We will lead together through the presentation. Also, we will answer questions at the end of our presentations, and so please ask them then.

Investor Day 2024, in June 2024, at the airport in Zurich, Sulzer presented in detail the strategy and also our midterm financial goals. Important growth above market and EBITDA margin above 17% and the return on capital employed of above 22%. Two pillars in the strategy: profitable organic growth and Sulzer excellence along the entire value chain.

Now the world has definitely moved on since June 2024. Let me just quickly mention what you all know the geopolitical framework has changed. We have tariffs and counter tariffs and, in general, a higher uncertainty in the market and low visibility.

Let me also mention our reporting currency, Swiss franc, which has increased in value, 15%, against the dollar since 1st of January 2025.

I think we all agree, we do live in a phase of accelerated change and there is, well, not too much visibility. Now what does not change is Sulzer strategy, profitable growth and excellence along the value chain. And what does also not change are our midterm financial goals of 17% EBITDA margin and return on capital employed of above 22%. Quite to the contrary, we are in the midst of implementing our strategy, and we are doing so successfully.

Now let's quickly look at the highlights of 2025. Definitely, we have had a strong sales increase. We grew above the market, and this is due to our capacity to execute on our large backlog in the first half of this year.

Profitability improved. Again, this is now the third consecutive year in which profitability improved, '23, '24, and the first half '25. In '23, it's probably fair to say that we were very actively collecting the so-called low-hanging fruit. Since '24 and now in the first half of '25, the improving profitability is, among others, due to a very disciplined and proactive implementation of our excellence strategy.

We have good order intake in Sulzer as a group, with the exception of, unfortunately, Chemtech. The Service division is excelling in order intake, of course, also having tailwinds from the aftermarket, Sulzer Services division is more or less fully in the aftermarket, and the aftermarket is continuing very well, not influenced by outside impact, as I mentioned before.

We also have very good momentum in the Flow division, and Thomas Zickler is going to go a little bit deeper in showing to you why this is the case.

Now with Chemtech, there are reasons for the situation, they have to do with the geopolitical uncertainty, they have to do with overcapacity in Asia, particularly in China, in the refinery area and in the petrochemical business. Now there are also some homegrown issues in Chemtech, and we are now very much doing our homework in innovation, in order winning and in order execution. We are doing that under the leadership of the still new division President, Tim Schulten, and we do see favorable signs going forward.

Let me quickly also mention the strong return on capital employed development definitely on our way to meet our targets of above 22%. And also in these special times, still a growing order backlog.

Now it is time for me to hand over to Thomas, who will lead you in more details through our results.

Thank you very much, Suzanne. Let me go in the financials. So I want to start this time with sales. When you look at our very strong sales, which we achieved in the first 6 months of this year was plus 6.3%. You will see also then in the details, talking then about the divisions that we had double-digit growth on the sales side in Flow and in Services. In Flow with 10.3% plus and in Services with almost 15% plus. On the other hand side, as already indicated by Suzanne, in Chemtech, we have seen a minus of 13.6% on the sales side.

With this, I would like to go to the order intake situation and then also elaborate during the next couple of minutes more and more on the situation which we face in the international capital and CapEx markets. So talking about order intake, you see here that we have the opinion that we have a good order intake for Flow and for Services. I think for Services, it's very clear, for Services, we have plus 12%.

When you look the order intake for Flow, you see a minus 3.1%. However, when you compare H1 last year to H1 this year, you realized that in last year, we had a big USD 100 million order from a big project in the Middle East. And when we normalize our order intake, even on a group level, we would end not at minus 2.4%, we would end at plus 2% with this normalization.

What is clear after the first couple of months this year is that we are more impacted from these geopolitical uncertainties and also the tariff discussions as well as difficulties in Asia, where we have overcapacity in the refining area that we are more impacted on our Chemtech side than in our other business segments.

When we talk about the quality of our order intake overall, you see that our order intake margin went up again 210 basis points. So this means the quality of our order filling our order book is really of good quality. We see here in no division reductions or decreasing order intake margin in the first 6 months of this year. And believe it or not, it is not Chemtech, which has the lowest addition, it is another division.

When we talk about our order backlog, order backlog, was impacted heavily by the massive U.S. dollar devaluation over the last couple of weeks, more or less in the last 2 months, almost 15%. And this has also an impact, but only from a, say, FX perspective on our order backlog. Because you see that our backlog actually has grown by 5% compared to H1 last year.

Last but not least, let me also elaborate a bit on the currency impact on order intake in sales. As a [sum rule], you can guesstimate roundabout 4%. We have impact on orders and on sales. And this is, in absolute terms, roundabout CHF 70 million.

Now let me go to our profitability. And here, I want to really say continuous strong improvement of our profitability. And here, I want to start with the comparison. You see on the left column, 14.4%. This is compared to last year, a plus of 90 basis points. If we would calculate here the massive U.S. dollar FX impacts out, we would have even increased by 120 basis points, so 30 basis points more. And just to remind you, we come from an EBITDA profitability in the year of '23, in the first half of 12.9%.

Talking about return on capital employed. You see, and I think here I don't have to comment much more. 270 basis points, so almost 3 percentage points increase in our return on capital employed. What is the cause, the root cause for this? Our EBIT is growing very well. And on the other hand side, our capital employed is stable.

Then let me go into the divisions, starting with Flow. Here, on the Flow side, I want to focus you on the profitability improvement. You see on the EBITDA margin, that Flow again has increased by 50 basis points its profitability, which, in my opinion, is really a very, very good result. Also here, as a reminder, on the EBITDA profitability Flow is coming in the H1 '23 from 8.4%. So you see here why we always stress continuous improvement in our profitability. This is really something which we are very proud of what we have achieved here.

When we talk about the sales, the sales in Flow, you see that we have here on the Flow side, really double-digit sales growth. We are growing double digit in energy and in water. I cannot give you the number because we are not disclosing these numbers, but just to indicate energy on the sales side and water, they are growing double digits.

Coming now to the order intake. As I already mentioned in the beginning, we have -- and I start with energy and infrastructure. We had last year, this USD 100 million project out of the Middle East. And this project is massively impacting our comparison to last year. If we take this USD 100 million project out of last year and compare it with this year, you see that the Energy and Infrastructure division wouldn't have gone down by 13.2%. They would have went up by 12%, just that you see the magnitude of this big order and these kind of big orders, we normally get every 5 or 10 years. When we do this calculation on the flow basis, you see that we would then go from minus 3% up to plus 8% on the Flow level. So you see the magnitude of this one single order, which we received last year.

As a last point, I also want to hear address on the flow side that the order intake margins, they are growing. It's a very stable, a very healthy business. The order pipelines, they are looking very promising. And therefore, I think here, you have a good overview over our Flow division.

Let me go to the next, Services. Services, I was really in preparation of this conference asking myself, what should I really stress and what should I say about Services. Because Services now and you see it at the headline, it's the third consecutive year where we have Services growing double digit on order intake and on sales, the third consecutive year. We have sales growing in all regions with double digit. When we talk about orders, we have in America, a growth rate in the first 6 months of this year of roundabout 8%. And when we look into Europe, Middle East and Africa, we are growing by 25% in the first 6 months of this year. And this is because of the governments, the industrial corporations, they are looking for higher security when it comes to the Energy Infrastructure and also energy savings when it comes to efficiency of their processes.

What I want to address here on Services, and this is the only thing as basically a markup also for you. Maybe you remember when we had our press conference at the year-end, we said Services invested last year, a lot in its footprint, in service locations in the Middle East, but also in other places in Asia. And we also said they invested in their sales force. So you see already the first Sulzer excellence impact in the first 6 months of this year. You see that the profitability, the EBITDA margin is coming up by 30 basis points. When we compare this where we are right now, we are close to the profitability level, which we closed last year with 16.8. So you can expect here further progress in the profitability development of Services this year.

Then Chemtech. Chemtech, yes, Chemtech is a bit our division, which is most impacted by all these geopolitical uncertainties, the tariff conflicts, and we have in the refining area, the most sensible and sensitive CapEx investors. We have, in addition, in Asia market in the refining area, which is quite satisfied. We have even overcapacities. So all these together has led to the situation in which we basically are in currently with Chemtech. What is currently not visible for us is that we have a pipeline of very or a promising pipeline of a couple of bigger, larger orders in the area of bio-based polymers, PLA, also carbon capture, but also sustainable aviation fuels.

Currently, we have no visibility, as I said, what -- which of these projects will materialize, but we are say, in good optimism. And we think that some of these projects, they will come in H2. So what I'm trying to say here is that we expect that H2 is really getting in much better than H1 in Chemtech.

When we talk about the results of Chemtech, I also want to remind you looking for example at order intake. Order intake, yes, this year, minus 20%. Last year, it was plus 8%. And the year before, it was plus 25%. Just that you see the growth magnitude still with now this 20% impact on a very high base this year.

What we see also, and you see it on a double-digit minus on the sales side, that we have had headwinds when it came to execution of our projects. We were faced with some, I wouldn't say many, but some delays on a project customer side, where we then had to also delay our execution on this project. We also saw less new orders coming in, which then led to a lower book-to-bill ratio and then overall to a lower sales in the first 6 months.

Last point, EBITDA margin, you see the EBITDA margin is almost down 3 percentage points. We have taken first measures and really have decided not to overdo it at this point in time because we think, as I mentioned, that we are currently in a geopolitical environment, which has nothing to do with the markets, in the sense nothing has been changed on the structurally growing markets. We still believe in the markets like PLA carbon capture and aviation fuels. We also have a good core business in the gas and refining area. So taking these uncertainties away, we believe that we can catch up. And therefore, we have only taken some very reasonable cost measures on the Chemtech side to ensure that per end of the year that we are achieving our profitability targets.

Then cash flow. And here, you see solid cash flow, and I explained to you why I think it's solid. It's CHF 12 million lower than in H1 last year. What is the reason or what are the reasons for this? We have because of this economic uncertainty or geopolitical uncertainty, we have customers delaying now the projects. We have everyone hesitating now to decide. We have on the CapEx side, these situations.

So all over the place, we see delays. And this is happening also, in our case, and therefore, our inventory went up. And also when it comes a bit to the payment model, our accounts receivables went up. And when you take our inventory and accounts receivable together, we have roundabout an increase alone of CHF 40 million compared to H1 2024. And therefore, I think with the CHF 12 million less on our free cash flow, Suzanne. It's quite a solid and a good cash flow.

So with this, Suzanne.

Thank you very much.

Having our company really in good shape. I want to hand back to you.

Thank you very much. And please also hand this back to me. Thank you. Well, let's have a look at a bit the bigger picture. I'm not going to speak about the tariff situation anymore. What I want to mention is that these uncertainties and reduced appetite for decision is both in the United States and outside of the United States. It has also to do with the fact that customers have difficulties to calculate the costs of their project because they don't know what tariffs will be applied, what will be passed on to them. So that gives a certain uncertainty and projects that you don't necessarily have to decide on right now, but can also do it 3 months later are often not always, not even often, but sometimes then delayed by 3 months.

It doesn't change the fact that nothing was canceled. No projects were canceled, they were pushed. Those that were pushed were pushed into the second semester of this year and a few one, particular, in the Middle East through the first semester of 2026. So all in all, however, the investment need for energy infrastructure, natural resources and the process industries is completely unchanged. It's a structurally growing market. And what is also unchanged, a bit in contradiction to what you can read in the media is this push of our customers to reduce their ecological footprint. They worry about energy efficiency, energy savings and emission reduction, decarbonization and higher performance. That hasn't changed at all. Often also because cost and a reduction in the ecological footprint is linked.

And in that, we also see an increasing pipeline of large projects in what we call the environmental technologies. That is not only Chemtech, that is also Services, and that is also Flow. So nothing has changed there, although maybe the political sentiment when it comes to sustainability has, in some respect, it is good, has changed. Everything has become a bit more rational.

You know the following slides or many of you do showing the markets, in which Sulzer are and how they develop and why we speak about structurally growing market since 2010. At least this has been the case. Markets growing on the order of 5% or a bit less, depending on the situation per year. And they have always been short-term little slowdown in the growth and then afterwards, it has picked up even more. This is how we orient our market strategy, and we do see the reality of this in our discussion with the customers.

So let me speak for a moment about innovation. You haven't heard that much of me about innovation, although Sulzer is, of course, and justifiably so very proud of its innovation. The reason is that innovation is part of our overall strategy. It's part of growing profitably, and it is part of improving our excellence along the value chain. It also means helping very concretely our customers' goals, which are to grow, to be competitive, to reduce costs and to reduce their ecological footprint.

So when we speak about innovation in Sulzer, now we mean research and development that really meets market needs, relatively short term. We have also some long-term research that we will continue, but we are becoming very concrete.

So let me show you just 3 examples. I will not be too long. One is the hydraulic recovery -- hydraulic power recovery turbine that is helping our customers to save energy and to save cost. You can say you take the pressure energy and of a pump and you turn it into electricity. There are a few steps in between, but it makes a difference for our customers, and we are very developed -- and are very happy with the development in that area.

Let's look at Services. Service does a lot of innovation, although we often speak about services just as repair and maintenance, but repair and maintenance has a lot of innovation. And also, it's about enabling and upgrading the energy infrastructure of our customers. So Services has launched a specialized service that they call Sulzer Energy Optimization Service. It is for energy infrastructure focused on pumps. Now you will maybe ask, well, does pump -- do pump make a big difference in the energy consumption? Yes, they do. 20% of our electricity consumption worldwide happens in pumps. Interesting figure, isn't it?

So if we would just increase the energy efficiency of all pumps worldwide by 1%, so very slow, very little, we would save on the worldwide scale about -- a little bit less, but about the energy consumption of all of Switzerland, which is about 58 terawatt hours. So these are big things, although just with -- yes, technically little impact.

Speaking about Chemtech, clearly, decarbonizing the material supply chain with biopolymer. This is an emerging industry. It's an emerging need. Innovation right now is about making this technology cheaper, less costly and also to broaden the application field. We are happy with the development in this area with very large orders that came in, in the first half of this year. And we have also now inaugurated our engineering and application hub here in Winterthur, and I am very happy to report that it is already running at full capacity with customer -- paid customer projects and also formulation development, which just speaks to the fact that this technology is very interesting for our customers around the globe.

Let's just look a little bit, get the flavor of what Sulzer is doing. Just a few examples. Well, Venice Lagoon is known for very flamboyant weddings. And so it is important that the water stays clean, but not only for the weddings, also for the whole population. That is more or less given right now. However, there was a regulation change in Italy, and that means that also excessive water from storm, storm water in the future has to be cleaned. And then you have a problem because you don't have that much space in Venice, and you still need to add capacity.

So Sulzer gave a solution that allows to save 90% of the space. You need 90% less space compared to the standard sedimentation technology. We also reduced the energy consumption by 50% and by 100% the amount of rinsing water necessary. This is what we mean with making our customers more competitive, reducing their ecological footprint and enable them to live up to their goals.

Another completely different example is from South Africa. Grid stability in South Africa, a major issue. They have regular power outages and also, of course, peak needs. And we have been awarded a large contract in the area of the overhaul of 5 large gas turbines. Eskom is a Sulzer customer since more than 30 years. That made us even more proud to get this order because they really know whom they are dealing with and they seem to think well of us. And also, I'm glad to report that we are not only overhauling these turbines. We are also training the local people, local engineers so that they can build expertise going forward. That is also part of this package.

Let's have a look at technology that is slowly making its way into the market, and that is carbon capture and storage. As far as I know, largest carbon capture project worldwide is the net zero Teesside Power project. What is it about? It is about decarbonization of an industrial cluster that still needs a lot of energy and also flexible energy.

And so it is about the decarbonization of the gas-fired power plant. It's a big gas-fired power plant, 740 megawatts that is [indiscernible], and[indiscernible] together plus/minus, and it's about taking out 2 million tonnes of CO2 per year. The midterm goal of our customer is to take out 10 million tonnes of CO2 per year. And Sulzer provided the internal tariffs, the critical equipment and all the engineering that comes before that to separate the CO2 from the flue gas.

Next example, interesting coming from Malaysia. This is a customer who is investing a large amount in a also large pilot plant for sustainable aviation fuel. They are doing that with Sulzer technology, particularly for the purifying step, and that is very important because this project will not be in competition with the food chain. It is fully supplied by waste material. And so the purification step is even more important. You see to the left, our Business Unit Head from Process Solutions, Ilja Mikenberg receiving the award in front of a big conference in Malaysia about sustainable aviation fuel.

So these are enough examples that give you a little view on what we are doing and why we are saying that we are serving critical infrastructure, both for a profitable economy and also a sustainable society.

I'm coming to a close on track for Ambition 2028, the ambition that we formulated 14 months ago remains the same, and we will reach it, although we do have a bit different circumstances than we had 14 months ago. One of the elements is clearly that Sulzer has a strong aftermarket. So non-project-related business. And all in all, over the 3 divisions, the aftermarket represents 50% of our business and of our order intake. We definitely do have a good order intake, with, unfortunately, the exception of Chemtech. But yes, we are working on it together with division. And as Thomas Zickler just said, we do also see some very positive development.

Now market uncertainties persist. And interestingly enough, it's really uncertainties because situation can become worse, but it can also become better that is quite interesting. And that means that we do have a pipeline of new growing projects that we didn't see a few months ago that are coming in, and they're coming in from all 3 divisions, but the pipeline is not yet an order, but still it is also an encouraging sign.

Definitely, Sulzer excellence along the value chain. The way we do business, the way we win orders, the way we execute orders is picking up speed throughout the whole company. We're definitely not yet in an area where we would plateau. There is much more potential in the company, but it is something that will also need a few years to really give the full results. So proudly, we serve essential industry and we contribute to a prosperous economy and sustainable society that allows us also in this circumstances in which we are to confirm the guidance. There is no reason neither to up the guidance nor to lower the guidance. We see clearly that at this point in time, of course, that the order intake will be up between 2% and 5%, sales up between 5% and 8% and the EBITDA margin above 15%.

Thank you very much. Thank you for your interest, also for your interest in Sulzer and for taking the time to follow us.

We are now at the beginning of the Q&A session. So please do ask your questions.

Good morning from my side. The friendly voice from the background belongs to me, Marlène Betschart. I'm responsible for communications at Sulzer. And if you have a question after this webcast, please feel free to drop us an e-mail at [email protected] anytime.

I will now start with the questions.

So from Christian Arnold from ODDO.

He asks Service division. You reached a very strong top line growth, organic sales growth of 14.8%. The EBITDA margin increased only by 30 basis points, which looks modest given the high top line growth. Has operating leverage not a big role in the Services business?

Thank you for the question. Absolutely right. It is true in the Service business, the operating leverage is probably slower than in a business where you have a larger fixed cost block, but it is still there. I would say that the Service division's priority were clearly in growth and that we are not yet there where we should be when it comes to executing on our Sulzer Excellence initiatives, but we do expect an improvement in profitability already this year and then going forward. Would you like to add something?

Yes. And as I said, we have also in our strategy in our Ambition 2028, a certain phasing. So first, we focused on divisions like Flow and also Chemtech. And we basically had Services since they were very profitable already at the start of our program, we had basically underprioritized them a bit.

And this is what Suzanne and I, are saying for the last 6 months now that now the focus is on Services. And Christian, you're absolutely right. This profitability has to increase much more. And we are doing currently everything. We have, as I said, started last year already in preparing this. And you will see that by the year of the end, the profitability increase in services is much higher.

Second part of Christian Arnold's question is about sales in the U.S. that remained rather flat. We heard from other Swiss companies talking about a booming energy and electricity business in the U.S. Could you explain Sulzer's performance in the U.S. and talk about the future potential?

Yes, I'm glad to answer that. So definitely, number one, we are reporting in Swiss francs. And so we are losing 15 percentage points when it comes to the sales development in U.S. dollar in the first half of this year. Maybe Thomas will add something to that.

I also saw the good development of ABB and Accelleron. I understand both companies are strongly involved in the Grid business, which needs more than just a little bit of repair and maintenance, I mean, the Grid in the United states. We must also see that we have grown very heavily in '23 and '24 in the Service business in the United States. So we did expect a little bit of flattening. But all in all, we are positive about the development in the United States.

And to add on what Suzanne said, when we look in the United States, we have a very strong Services division still. However, as we told you, in Chemtech, we have currently a bit the hesitation coming from the customer side also in the U.S. So all in all, this offsets so that we are more or less even on the growth rate in the U.S. But on the other hand side, he was also asking for what are the future prospects, what do we see?

We see, especially in the U.S. nowadays with their ambition to get in AI, a leading country in the world that they are building up more and more so-called gas-fired power plants. And in this new installations, we think that we can get from all the 3 divisions additional business, which is currently not in any of our forecasts.

Next question from Martin Betschart, Rahn+Bodmer. Can you remind us of the visibility you have with your backlog? How many months?

So this is a tricky question because the backlog is created when you get the order, the signed order and then you add to the backlog. Depending on the segment, we have order backlog, which is just good for a couple of weeks, say, in the Services business or also when we sell products or parts. On the other hand side, we have in our backlog projects, they are 18 months, 24 months. So actually, normally, we say we have a [weakening] in the backlog of roundabout 9 plus x months. So this means between 9 and 10 months as an average if you absolutely want to have a number.

Next question from Fabian Piasta from Jefferies. He says, congrats on another strong print. First question, can you please provide details on the positive CHF 9 million effect on EBITDA from Corporate Center? Can we expect a reversal in the second half year or see this rather as a run rate for the full year?

I'm happy to answer this question. This is -- this will get a run rate. So what have we done here? Because we are earning more and more and our profits are going up, we had to do certain, I call it, tax optimization measures. And what we did, we increased in the first 6 months of this year, the so-called management fees, which we charge as a headquarter to our 3 divisions. And this is more or less the CHF 10 million he's talking here about. And when now I have to answer this question, I can also address this then to you. All the profits, all the grown profits which you have seen in the divisions, they include this CHF 10 million higher charge from the headquarter. So you see how excellently our 3 divisions are performing on the profitability progress.

I would like to add something more general. Of course, when we speak about Sulzer Excellence, this is not only excellence in the division. This is also excellence in our functions, finance, AR, supply chain. Many -- did I say AR, I mean HR and supply chain. We are strongly taking strong actions to reduce our total overhead in the company, and that includes the corporate organization.

Second part of his question. I understand that weakness in Chemtech orders might level out in course of the year with some catch-up in the second half of the year. But how can we think about the refinery petrochem overcapacities in China going forward? Are you expecting pent-up demand towards 2026? Or do these volumes need to be compensated?

We do not expect pent-up capacity to be compensated in '26. We are assuming that this situation with the refining and petrochem chemical will remain in China in Asia as general. Our positive outlook is based on a bit of change in China, how we work the market with smaller markets and smaller projects and also more products in China for China. And we clearly also see that outside of China, we see more projects coming in, in the renewable area. But we are not betting on a rebound in China for 2025 and 2026.

Third part of the question, can you please walk us through the measures, levers leading to margin improvements in Flow and Services? What was the main effect in Chemtech apart from missing scale?

Yes, I'll start and then you can follow up. Okay. Yes. Thank you. So on a high level, we can start with how we organize order intake depending on the business unit, it's about being fast and high quality, so we can immediately answer the customers' need. It is also about having more market-driven pricing and not so much cost plus. I think we have also left some margin in the past because of our cost-plus focus. That is -- everything is not happening from one day to the other. But you can say order winning is important -- of importance.

And then when we come to order execution and everything that is with that, we are doing very systematic value stream mapping, allowing us to increase the capacity in our plants without adding workers or making any large investment. We have a very nice example of our plant in Pune in India, where 2 weeks of very in-depth and collaborative value stream mapping led to a transformation that, believe it or not, doubled the capacity of that plant, which now says that if we grow profitably, we don't have to invest.

Next question is from Alessandro Foletti from Octavian. In Chemtech, can you quantify the size of the large order for carbon capture you got recently for Teesside? And also, was it booked in the first half of the year H1 already? And finally, do they have any economic benefit by installing this system?

Yes. Okay. So I start. Actually, how can I say this? It's in the mid-double-digit millions. The order size because we are not allowed to specifically say the exact order number. Then we have booked roundabout 50% already in H1. The other 50%, this will come in October, November of this year. Yes, Suzanne, that's it from my side.

Okay. You asked about the economic benefit, a very interesting question. So in this project, it's about carbon capture and then storage in the North Sea. The rationale for the customer is as much independence as possible from the grid, which then -- the national grid, which then compensates for a lot of cost because you pay less grid fees and also less taxes.

And the project, the additional costs are amazingly small in this project. I'm sure I can -- I'm not allowed to say the figure, but it shows that there is -- if you have the carbon capture in the right place, at the right magnitude and you factor in also the energy savings that you will have, not the least in the ever more expensive flexibility in the energy area. So having electricity when you want it and not just when it is there, they have a good business case.

Also from Alessandro Foletti, 2 questions regarding Flow and Chemtech. The first one is, can you remind me in Flow, how high was the large order you got last year in energy that formed the high comparison base for this year's order? And the second one, Chemtech, can you quantify the impact of a weak China? And how much of this is refinery versus other business like renewables or PLA?

So I'll start with the first part. The large order which we received was around about USD 100 million or CHF 84 million counter value. And this caused a high base impact last year. In Chemtech, yes, the dependency on China is high because we were basically grown over the last decades in China in the refinery business. How much is this versus renewables? I would say the core business share in China is still relatively high relative to our renewables business. I would say, 80-20, 70-30, something like this.

Yes. If you limit the question to China, then definitely, the renewable part is smaller. What we are doing now more and more is selling into segments that we have had less activities because we were going for the large projects, but it is not so that the smaller projects, by definition, are less profitable.

Next question is from [Jorg Meyer] from [indiscernible] What will be the longer-term effect of the increasing electrification transport, for example, in China and increasingly in Asia on the business of Sulzer?

Electrification means you need more electricity and you need at the same time to decarbonize your electricity supply. I think also the Asian governments, they agree on this, and they also realize maybe more than in Europe that it is a long-term journey that we undertake. So we see a positive development on the electrification of transportation simply because it will need more power, and it will need more clean power.

Question from [Louis Bjorn from Alpha Value]. Order intake margin is improving. Is it due to a mix effect? Should we expect a margin decline when we will see a recovery in order intake for project-driven business?

Here, I can clearly answer, no. Because our order intake gross margins, they are really sustainably growing. And we have certain measures in place. It's starting with value-based pricing, and it's ending then with our operational excellence measures, which we take on our side, on our cost side, on our productivity side. And therefore, we do not foresee that the order intake, gross margins will go down in the foreseeable future.

Do you have some visibility for a potential recovery for the energy and infrastructure sector?

So we wouldn't speak of a recovery in the energy and infrastructure sector because we have a good development there. If you are referring to decisions for fossil-based large energy project, if that is the sense of your question, then again, as mentioned, in Asia and in China, we do not see it for the moment. We do expect developments in the United States, but of course, that depends heavily on the oil price.

And third part...

Sorry, Thomas.

Sorry. In addition to what Suzanne said, when we normalize our result in energy, as I told you, we have a plus 12% growth in our Energy segment, which is double digit and quite sustainable. So I wouldn't speak at all about a recovery in energy.

Exactly, yes.

So third part of [Mr. Bjorn's] question, is it possible for a client to cancel an order? Are there any tariff-related cancellation clauses in your backlog?

So in principle, it is possible for a client to cancel a project. It is then a very expensive thing for the client to do because, of course, we will then charge all the costs that have been accrued over the time. So far, we have had no project cancellations, neither for tariffs or for any other reasons. When we are speaking about tariff-related cancellations, again, that is possible, not happened yet, and we would be compensated for the costs we have incurred.

Next question comes from Adam Farley. What specific end markets or geographies are seeing project delays, chemical, Middle East? What gives you confidence that project delays don't turn into project cancellations in the second half of 2025?

Okay. I'll take that. Yes, absolute certainty -- there is no absolute certainty. There is a possibility that we see cancellation hasn't happened yet. And we are balancing that with projects, large projects, particularly also out of the Middle East that we didn't see coming over the last months. So there, we have an up and potential of cancellation, yes, is there. There we have a down, and that kind of nets out. That is how we assess the situation. Then you asked about the specific geography. Yes, we see some -- well, actually only one, but very large project in the area of oil and gas that has now been postponed to early 2026.

Yes. When we talk about geographics and also chemical in the Middle East and all over the world, yes, we don't have the certainty, as Suzanne said. But what we see, and this is the promising pipeline, which we talked about. You have the following situation in the markets. In H1, everyone planned its CapEx investments and then caused by all these uncertainties in the markets, they all delayed and postponed.

So we have now when we look in our basically systems where we have the order intake planning and the order intake forecast, you see that there is a really pile up in H2. And yes, some of these projects, they will be further postponed to 2026. But don't forget that this pile up also has to be somehow tackled over the next couple of months. And therefore, we see more or less a better H2 than H1, plus a lot of promising opportunities coming up that then overall, I would say that the worst situation should be over when it comes to our, say, H1 performance.

Next part of the question is what specific end markets or geographies are showing relative strength, for example, in the water business?

Yes, we see indeed a relative strength in the water business. We do see a lot of growth in the Middle East, indeed, and clearly, in the Service area, as you see in the results of the division. And we do see as a matter of fact, growing orders in the environmental technologies of Chemtech.

I mean we got a large order for bioplastics. We got a large order for sustainable aviation fuel, and we got a large order for carbon capture. That is compensating partly for the situation in China. However, it is something that I really would like to say here that we are still speaking of our classical business and our column tower internal business as our core business.

And the renewable business is coming on top. Maybe in the past, we gave a bit the impression that the renewable business is the one that will take off very, very fast and the core business that we call legacy business at the time will reduce. And that is not the case and makes also no sense given the market situation.

And we are now under the leadership of Tim Schulten, we are now correcting this. We want to grow both in what we call the core business and the renewal business, and we can grow in both areas.

Then given increased market uncertainty, are there additional Sulzer Excellence initiatives that can be accelerated in the second half of 2025?

Well, we have done the obvious that we reduced some variable costs. But as Thomas said earlier, we do it judiciously is probably the right word. We are pushing down travel costs, things like that. We are very careful with how we spend our money. But we have a growth strategy, and we are a growth case.

And we do not want to forego what is going to happen soon, but maybe not in 2025 by saving too intensively in 2025. But what helps this situation is to increase the cost consciousness in the whole Sulzer Group. And it also means we are hiring in sales, we are hiring for people in the production, but we are very careful in hiring people in the overhead area, be it somewhere outside of Winterthur around the globe or in Winterthur. So yes, it changes our approach, but we are not going into a massive cost-cutting exercise at this point in time.

And maybe let me add here on this because you took over my part with the cost.

I'm sorry.

No. But we also focus much more on our commercial excellence initiatives, which we have in our program. We want to tackle additional markets, which we haven't done so much in the past. And we also have changed our sales force so that we can tackle the additional markets in a way that you know the difference between hunting and farming when we talk about our sales forces. And this is what we proactively do to not wait like, for example, in China, we cannot wait until the market in China comes back. This maybe takes several years. And therefore, we have to look for alternative markets where we, with our products and product portfolio, we have a good chance to grow in these markets.

Thank you. That's very good.

Then can you talk about expectations for increasing European infrastructure spending in the near and long term?

We have no quantifiable expectation yet. It is also quite unclear right now this European infrastructure spending on a very high level. Going forward, we, of course, hope that it will revitalize the European chemical industry and in general, the industry, let's hope that this is going to happen.

Another question regarding the tariffs. What is the company's gross exposure to tariffs in the U.S. as it stands today? And what are Sulzer's price versus cost expectations for 2025?

I'll take the first part, I give you the second part. So the gross exposure to tariffs as such is really very small. I know of CHF 3 million or CHF 4 million right now that we also didn't forward to the customer because the contract didn't allow it. Of course, we are now wherever possible, changing the contracts, so we can pass on the tariffs.

So the direct exposure is small and the indirect exposure that both Thomas and I spoke about is, of course, there because the tariffs make it difficult for our customers to calculate their return on investment for their project and how much capital expenditure that they need for a project because everything is so volatile and uncertain. And certainly also in the United States, it will increase costs.

And let me answer the second part of the question. When it comes to cost and price expectation, it's clearly when all the industries have to produce in the U.S. that the costs go up. The prices go up for material, the tariffs between the countries will then also be added to the end customer. So this means I expect at least in the midterm, an increasing price level in the U.S.

Question from Rolf Renders from [indiscernible] Given the significant exchange rate headwinds that started mainly in Q2, assuming this remains the case for the rest of this year, can you please provide some insights full year 2025 impact, especially on sales and financial charges?

This is a difficult one. So when we talk about financial year impact, so for the half year, talking about EBITDA, we have roundabout a CHF 16 million FX impact on our EBITDA, a negative impact. So EBITDA would have been CHF 16 million higher without these negative headwinds out of the FX. It's difficult. When we have the same currency situation as we have right now, then you have just to double the numbers to have at least a [sum] rule.

The question is really what is going to happen, especially with the U.S. dollar in the second half of the year. This is for me the biggest challenge. But currently, as I said in the very beginning, we have roundabout on sales and on orders, 4% of FX impact, which equals CHF 70 million, CHF 80 million. So as long as the situation is stable here, you can then do the extrapolation for the full year-end numbers, but we don't really expect here a much higher impact since we have a local footprint globally.

I have 2 more questions from Fabian Piasta from Jefferies. How much percentage of sales is China of Chemtech and how much percentage is refinery and petrochemistry?

Okay. Chemtech of -- sorry, China of Chemtech would be about 25%. You correct me if I say it's a bit more, 30%.

Yes. Yes.

I cannot give you the exact number, but it is significant. And the refinery part in Chemtech in China is decreasing because of our initiatives to sell in other areas in the aftermarket. Also in Chemtech do this thing is decreasing, but it's significant. You see it in the results of the order intake in Chemtech.

And I have to admit, I also couldn't answer the question out of my head. Fabian, I come back to you and send you then the numbers if they are not matching with what Suzanne said because this is really a very specific question.

And the last question that I have now is consensus expects 15.7% margin in H2. What are the moving parts in your view?

Working on our excellence initiatives that we implement these initiatives that we really bring it to the ground. Also that we execute on our backlog that we bring the sales. And then it's just the math in the end of the year. So we are on good track. I don't know if we will achieve the 15.7%. We said above 15%. So let's see, but it looks good.

So this has been the last question. Thank you very much.

Thank you.

Yes. Thank you for taking the time to be with us, for your interest, also for the interesting question. Please stay tuned for Sulzer, we are doing our homework. Thank you very much, and have a good day.