Konstantin Wiechert

Konstantin Wiechert of Baader-Helvea AG asked for an update on the performance of Italy and Spain, development in Germany's OEM sector, and further clarification on the sequential margin decline in EMEA, questioning if it was due to product mix.

Answer

CFO Isabelle Adelt confirmed that the positive development in EMEA was broad-based across all countries, including strong performers like the U.K. and Poland, as well as Italy, Spain, and Germany. She emphasized focusing on year-over-year comparisons for margins due to seasonality and stated that Germany's business is seeing healthy contributions across all segments, not just OEM, despite the country's weaker macroeconomic environment.

Konstantin Wiechert of Baader-Helvea requested an update on the performance of Italy and Spain, commentary on Germany's development, particularly in the OEM sector, and clarification on the drivers for the sequential margin decline.

Answer

CFO Isabelle Adelt reported that the positive development in the EMEA region continued across all countries, including Italy, Spain, and Germany, with the U.K. and Poland being standout performers. She reiterated that the company focuses on year-over-year comparisons for margins due to seasonality and noted a healthy development across all business segments in Germany as the general industrial sentiment picks up.

Konstantin Wiechert of Baader-Helvea requested an update on the performance of Italy and Spain, commentary on Germany's development, particularly in the OEM sector, and a clarification on the drivers for the sequential margin decline in EMEA.

Answer

Isabelle Adelt, CFO, reported that the EMEA region showed positive development across all countries, with the U.K. and Poland being standout performers. She noted that Germany also saw good profitability development despite broader economic challenges. Adelt reiterated that the company focuses on year-over-year margin comparisons due to seasonality, dismissing concerns about the sequential change and emphasizing the strong YoY improvement.

Asked for an overview of the moving parts for free cash flow in the next year, particularly concerning potential raw material price increases and the path to achieving the net working capital target.

Answer

For next year, raw material prices are expected to rise slightly, but not dramatically. The company will continue its working capital management measures to reach its target corridor of 21-22% of sales. The high cash conversion this year is partly due to unwinding working capital from previous years, a trend expected to continue but to a lesser extent next year.