Bajaj Mobility AG ($BMAG)

Good day, ladies and gentlemen, and a warm welcome to today's earnings call of the Bajaj Mobility AG following the publication of the first quarter financial figures of 2026. I am delighted to welcome CEO, Gottfried Neumeister; and CFO, Petra Preining, who will guide you through the presentation followed by a Q&A session, where we would be happy to take your questions. And with that, I'm handing over to you, Mr. Neumeister.

Thank you very much. Good morning, USA. Good afternoon, Europe, and good evening, Asia. We are really happy and glad to be able to speak to you for the first time after a Q1 result. We have changed our historic pattern of only publishing twice a year half yearly and full year to now quarterly reports. And as said, this is our first quarterly earnings call. And therefore, happy to bring this transparency to you. I think it will -- the whole company will also benefit from this increased transparency. Yes, of course, our competitors are closely watching and eyeing. But overall, I think it's the right and positive step. Let me capture first really the big milestones and achievement. And it's really good to finally being able to speak about our success. Some have faced it and there were some feelings and now to being able to present it to you really black and white with results and with a clear positive trend is very important for us, but also for our employees, for all customers and everybody around the world who is watching and interest in how KTM and the Bajaj Mobility Group are performing. So in summary, you anyway saw the numbers which we have published. I would like to highlight 2 factors. Number one is we were able to more than double our sales in terms of units, plus 125%. If you look to the revenue, the revenue went up even [ 150.1% ]. So we were able to increase our revenues even higher than we were able to increase our sales units. And this is a clear reflection that we are selling with less discounts than a year ago. We are bringing new motorcycles were received. And this leads to really a very pleasant overall situation that our dealers are making money again. They're selling also without discounts. And this is really showing in the top line that we have, on one hand, managed to increase the top line really substantially by, as said, more than doubling. We are showing for the first time since many quarters a positive EBITDA. So this positive EBITDA also reflects our operational recovery. And yes, we have the motorcycle business and this is maybe to already give you an outlook of what we have done over the last year was the focus on the motorcycle segment. So the result is definitely coming from the motorcycle business. We exited the bicycle business. You see only EUR 1 million left coming from the bicycle business. Petra will lead you through the details later. Most importantly, our homegrown problem, the inventory reduction continues. And we had also a very successful start in the motorsport season. In a nutshell, the headline for the restructuring was focus and simplicity. We refocused on our core business, the motorcycle business. We got rid of bicycle as I just said, we got rid of the car business, the X-BOW. We stopped distributing CFMOTO and Chinese brands and focus on our own brands. And we also got rid of MV Agusta. So this is in the first bullet of refocus. Simplification is coming also through reduction of complexity. Here, we are working across the whole company to reduce our cost. We started with our corporate structure with our legal entities which we are downsizing substantially. We have also simplified and cleared out our portfolio of motorcycles in the peak times, I think I've mentioned it in the last call, we had 184 models only in the motocross and Enduro segment and we have reduced it to 98 with, hopefully, I don't know if you hear me knocking on wood, not losing out any customers and selling the same amount of motorcycles. So -- but also the simplification of our model portfolio leads to cost reduction even without headcount reduction because all those motorcycles, you need to go to a test then with the street motorcycles, you need to do the homologation and all the tests. And by simply reducing it, it has a lot of positive effects. One is on R&D effort. On the other side, it's also working capital, where you don't have as many spare parts which you need to provide. You're producing more of the same. So you get also synergies in the production and the economies of scale. So this is also an important factor. Human resource, we announced at the beginning of this year that we had to lay off another 500 people. The good news for you is all the financial burden of the reduction, the one-offs is already reflected in our Q1 numbers. And I think looking at bringing those then into perspective should give you also the confidence. So the social plan and all the notice periods which are necessary for the people we had to lay off are reflected. It was an important step to really make this company leaner and faster than ever before. We took out 2 management layers. We had a leading spend of 1 to 2.4 before that step. And now we have a leading spend of 1.6 -- 1 to 6, sorry, not 1.6, but 1 to 6. So this has substantially improved and was an important step. The 500 people will mean a EUR 50 million saving in 2027. On an annualized basis, we will see a little bit less than half this year already in the second half of the year. So this is all to come when we look forward to further cost reduction. Inventory reduction, we see a separate slide. And therefore, I don't want to spoil it. I just mentioned anyway, we managed to continue to reduce our inventory. And last point to reduce our cost overhead reduction, you see in 2024, when I arrived, we had more than EUR 44 million per month in overheads. This headed up to EUR 532 million of overheads in year 2024. If you remember, in the best years, we had revenues of EUR 2.6 billion, even with the ambition to grow to EUR 3 billion, EUR 532 million overheads was simply too much. We have managed in 2024 to reduce those overheads by more than EUR 100 million and we are continuing to do so. So this should show you the average amounts which we will -- are targeting per month. So a very clear and sharp focus on overhead reduction. Maybe quickly jumping to sales. This is what I've mentioned. So we have a 2-tier sales system. We sell to the dealers, which is our wholesale. The dealers are selling to end customers, the retail and what you see is that we were able to more than double our wholesales overall, 40,332 units compared to 17,915. You see the regional breakdown where there is a substantial increase in Europe. North America, still looking a little bit behind, but I can tell you this was more a product availability issue, not a market demand issues and that's something which will change throughout the next quarters. Rest of the world also up by 7,451 units. The retail is with 47,374 at one of the highest levels the company has ever seen in the first quarter. We also managed to slightly go above Q1 '25, which you have to factor in. We gave tremendous, tremendous discounts, more than EUR 160 million last year. We spent on discounts only to support our subsidized sales that we can continue to survive and to live. And despite this artificial boost last year, we were still able to not only hold the retail stable, but even increase retail numbers. So a very strong and healthy sign that our products are well received. The stock came down by close to 49,000 units in comparison to those quarters. If we look to the next slide, you see the historic development also on one end of the crisis, we have touched upon it again that we unfortunately had ignored for 3 years, the retail and oversold that market. Ever since we jumped on the brakes at the end of 2024, where there was no more sales happening, we managed to take out the first units out of the market overall more than 100,000 last year and you see that Q1 continues with another 7,000, leading to an incredible positive picture. I know there's a lot on this slide now. But if we start from the left, you see the historic peak values in orange are the dealer/importer stock levels in gray. It's our own stocks, our group stock. So adding up in totality to -- close to 290,000 units. And you see now the development on one hand from that time to yes, year-end, January '26, you see the ending stock of 2025. And we were only 19,834 units away from, let's say, a healthy or ideal stock. And you now see how close we're getting to that healthy target, which we have set ourselves, which is stemming from the stock turn, which we're trying to achieve on a global level which would be in the long run north of 2x per year. North America and Australia being at around 2 and Europe being able to get close to 3. Most importantly, what I've mentioned is that our products are well received. And therefore, at the moment, it's not here. Here, you see how many new models we have launched only in the last quarter from January to March 2026, the 990 RC Track (sic) [ 990 RC R Track ], the 890 SMT, the 890 Adventure Rally and a huge lineup of Dukes, smaller ones. All in all, as said, super well received on the market. And therefore, there is this confidence both on the dealer level and also on the market is really coming back. We already -- it's not part of Q1, but we already introduced now in April and May also some lighthouse projects, our 1390 Super Duke RR and our 1390 Super Duke RR Track. So just to give you a flavor what is coming. And there is much more like the FREERIDE E, which will be launched in the next couple of days. We had also a very successful and continuous success in our motorsport. And therefore, the season '26 was really incredibly positively received with the start that the car win of Luciano Benavides. But we, in the meantime, already won the first world championship title with Willy -- or Billy Bolt, sorry, Billy Bolt. We are leading the MXG World Championship and the MX2 World Championship, #1 and #2 is with KTM. So a very successful start and we even had our first win in MotoGP. We were also able to attract new sponsors. So in the middle of the MotoGP pack, you see [ Interwetten ]. This is a new sponsor. We have secured a long-term agreement, which really brings substantial funds into the company and which is a clear reflection that people start believing in that KTM again and believe in that turnaround story. I will now hand over to Petra to lead you through the financials, and then both of us will be available to your questions.

Thank you, Gottfried, and a warm welcome also from my side. It's always difficult to meet from motorsport and all the passion behind that topic into financials. But bear with me, I'll do my very best. The focus topics of Q1 were a lot actually and all of them very, very positive. From what you have heard already from Gottfried, we are delighted to disclose the numbers of Q1 and begin with a revenue increase of more than 70%, to be precise, 70.2% of course, compared to a weak Q1 2025, but nevertheless, it's a reflection of all the strong efforts that are behind the sales department and all the other departments from production to procurement to allow us to sell that high number again to the market. Additionally, and as a consequence of that very positive revenue result of Q1, we had our very clear and strict cost control measures, which leads for the first time in a very, very long time for a positive EBITDA and that's a reflection of the operational recovery. Our overhead cost year-on-year, so Q1 2025 compared to Q1 2026 show already a decrease of 8.5%. I have deliberately not taken out all the one-off effects in 2025, but neither in 2026. The negative one-off effect in 2026 coming from garden leave and the layoff of the 500 people is actually higher. So in the next quarters, we will see a very nice improvement of that number forward-looking. Also a huge milestone that we were able to share already with you was the successful refinancing of the EUR 550 million. Additionally to an increase of our factoring line, we have managed to increase another EUR 50 million on the volume over the EUR 100 million we had already achieved by the end of Q1 2025. That leads us to a very stable financial position. We currently, by the end of March, hold a little shy of EUR 160 million in cash and unused credit lines. Lastly, a topic, an exogenous topic, which impacts not only us, but the entire world is the Middle East war, the result of the geopolitical tension that we see caused by the blockage of the Strait of Hormuz. For Q1, we had a little to no impact, but we, of course, see an increasing headwind. I'll come to it in a couple of slides. Coming back to Q1 and our revenue and profitability development. And bear with me, I've already heard that this slide is a bit messy. And I would like to focus your attention to the left-hand side. So quarter 1 versus -- quarter 1 2025 versus quarter 1 2026, we see an improvement of 70%, to be precise, 70.2% with a very, very nice also improvement in EBITDA coming from minus 29% to a positive 2%. All that improvement, of course, is driven by the motorcycle and not the bicycle. The bicycle business has been given up. So we have heard already, we have ceased that business. But please note that in the year 2025 and we will see that in all the quarters, we will also disclose in the following publications, there will be an impact in the year 2025 and no impact in 2026. So the motorcycle business carries the entire load. And here, we see a doubling of the amount of revenue that we have been able to achieve. That number differs now from the 150.1% Gottfried has shared before because we include here also the PG&A, the parts, garments and accessory business. So very strong signal, 100%, if you allow me to round it up, improvement year-on-year, which is a very strong signal. Going into details and I have already said this today in our town hall, I take my apologies, financial people are not so good in marketing slides. Actually, the third column, the comparison should be green, but we have a black and white presentation used here. All the KPIs show a positive trend, a significant positive trend and that is a translation of the very hard effort and we -- trust me, we have been through blood, sweat and tears in the last couple of months and quarters to allow us to show that result with you and we're very proud even though, of course, we realize that the net profit is negative. But if you remind yourself where we're coming from and adjusted by the insolvency gain, just to keep that number on top of your head, the financial year 2025 EBIT adjusted by the insolvency gain was at minus EUR 444 million in EBIT. So that is already a huge improvement, showing a positive EBITDA even as that hasn't been achieved for a very, very long time. The balance sheet shows stable total amount. So minus 0.2% deviation is almost on par with the balance sheet amount by the end of the financial year 2025. However, there is in between the balance sheet, there we see movements. Firstly, a reduction in equity coming from the loss that has been generated in Q1 and a reduction in cash. Please note that this is a usual trend in Q1. In Q1, we also usually pay our bonus to the dealers. There are additional expenses that usually occur in Q1. So this is a trend that is known and follows an historic pattern. But it also caters for the working capital increase by higher trade accounts receivable. Inventories remain roughly at par. We have deliberately decided to increase our PG&A stock because we are able to achieve very nice margins by higher deployment of inventory. So this is a deliberate action, plus we have also pulled in orders in order to mitigate the Middle East situation when it comes to longer shipment terms. Equity ratio still at solid plus 22.2% and a [Technical Difficulty] little shy of 240%. We go now to the cash flow situation. Again all that improvement coming from top line and our efficiency gains translates of course in comparison to also a very strong signal. Cash flow from earnings is significantly above the relevant quarter of the last year. Please note, however, in comparison of the investing activity, we had a positive one-off by selling assets last year in Q1, which impacts the Q1 2025 cash flow positively by EUR 70 million. So if you take that into comparison, that of course distorts the picture in comparison to Q1 2026. Working capital as such will remain a focus topic and please rest assured the 33.52% is not the ratio I will be delighted to show you in the upcoming quarters. In the midterm, we clearly target a ratio on or [indiscernible] 20%. For the time being, what the topic we tackle and we spend a lot of time on is the trade payables. By re-ramping the factory after insolvency, almost all our suppliers have asked for very high securities in the range of prepayments and this has now been already depleted and reduced, but still is quite a topic we're tackling. So we talk about reduction of prepayments and we also therefore tackle higher payment terms. So overall, as said in the end of the year or beginning next year, we of course will aim to reduce that ratio significantly. Maturity profile and financial position. A slide we haven't showed you before, but I think it's important to show you our focusing on cash and unused credit lines. Due to the insolvency, all the products has been taken off BMAG. So for -- by 31st of March, 2025, there were no unused credit lines available. We meanwhile have been able to regain the trust of the banks and have achieved a EUR 50 million working capital line, which is undrawn. So EUR 50 million unused credit lines over and above EUR 108 million cash leads to a very strong and solid financial structure of a little shy of EUR 160 million, which is a solid position given a company our size. Refinancing, I have already mentioned. The EUR 550 million have been signed by early March this year and given the terms that we have already disclosed is also a very strong signal from the banks in the trust of KTM and BMAG and the management for the turnarounds that we are undergo. Factoring volume I have already mentioned. Another EUR 50 million over above the EUR 100 million we had achieved last year already and finally the unused working capital line I've already mentioned. The maturity profile is the one which is ahead of us and we will continuously show you the development of it for also the next quarters. One topic I think which gives quite a headache to the entire world. So it's a problem we share with almost everybody. The closure of the Strait of Hormuz has led to a significant supply chain disruption, an increase in energy prices and an increase in raw material pricing. We, so far, have none to very, very low impacts in Q1, but of course, we see and anticipate higher prices when it comes to steel and aluminum and also freight charges. At the same time, we currently undergo significant price reduction programs and efficiency programs and we are very confident that we can mitigate those impacts. But nevertheless, this is something we are already foresee for the near future. The other topic and I have already stressed it, is an impact on working capital. We have taken as a management the decision to pull in orders, meaning we invest in working capital by bringing in component orders earlier than initially planned in order to stabilize and secure production here in Mattighofen and by pulling in, of course, we invest in working capital. The graph on the left-hand -- sorry, on the -- yes, on the left-hand side shows you the additional days our components or finished goods are currently taking. You might wonder why to the U.S. it's only 5-plus days and into Europe it's 20 days. For the route to the U.S. we have always been traveling around the Cape of Good Hope. But to Europe we have used the Suez Canal in the past and now also use the longer route but more safer route. What we also do see is just to complete the picture that those suppliers where we source from in Asia that might have potentially higher effects on the Middle East crisis simply due to the lack of energy that might occur in Asia or Asia might be more affected than Europe. Coming to my last slide and I think the most important word of that slide is in the right-hand corner, top corner and this is turnaround. The turnaround which we are very happy to show you already in numbers is in full swing. We have literally turned around every stone, have challenged every single process and topic within the company without jeopardizing the DNA of KTM, which I think is very important and Gottfried has stressed it at the beginning. We have undergone all the topics listed focused on the brands and refined the profile, the go-to-market strategy, pulled in design into KTM, worked on supply chain efficiencies. Phoenix measures is our cost saving program. We tackled payment terms. We tackled the accounts payables as mentioned. We simplified the structure whether this is headcount fixed costs or our structural costs or the entity structure as such and finally have reestablished a very solid financing structure which allow us to support the growth forward-looking. So all of it a very comprehensive turnaround program, which we have not only started, but we are in the midst of it and we are very proud to show you the results that have already materialized in our numbers. With that, I have come to an end of our presentation, and I would hand back to receive the questions.

[Operator Instructions] Miro Zuzak is the first one with the questions.

I have a few questions, just I like to take them one by one. The first one on -- is on the cost structure. You mentioned the reduction in G&A which you have achieved, which looks promising quarter on the previous quarter. On the other hand, if you look at R&D cost actually is still gone up in Q1 to EUR 21.1 million and the run rate is basically not on a rate of improvement, but it should end at EUR 8 million more, if I just quadruple the first quarter. Can you comment on that?

Absolutely. With pleasure. Yes, absolute right question. You have to take into consideration that in the first half 2025 and therefore also in the first quarter 2025, there was almost no R&D, I can't say improvement, but we clearly have come out of that insolvency phase and have now invested in that R&D bucket. You will also find cost for the Phoenix program. So the relocation of some of the components definitely is also -- or comes with a higher cost by tooling and relocation, so that those costs are also it can be found in Q1 2026 cost block and also the cost for all the SOPs Gottfried has already presented.

Can you give a number for this cost line going forward? Is this the new flight level, or is it -- will it decrease in the coming quarters?

I would expect on R&D this is the new flight level. It will come down, though, by the cost reduction of the EUR 500 million Gottfried has mentioned. Those improvements you will only see in Q2. The garden leave cost and all the associated costs with social plan has been booked in Q1. So here you will see a relief, but this relief will apply not only to R&D, but to basically all the SG&A line items.

Okay. Then I noticed that your inventory went up very little, but it went up. Is it true? I know you've showed the slide. It looks like it's not completely reduced, but still, can you comment on that? Is this a coincidence, or is there any further relief, basically further lowering of net working capital going forward?

Absolutely. I said there is -- working capital is a target topic, but more on the accounts payable. Absolutely right question. We see 2 counter effects. We see the inventory level coming down when it comes to finished bikes. But on the other side, we have invested in higher pitch in e-stock in order to support our customers with spare parts worldwide. Here we have been due to insolvency in 2025 on a very low level and the other topic is that we have also invested in pulling in orders due to the Middle East crisis.

Okay. Then on COGS, the level in terms of sales was now at 80.6%. If I look back, in the years back, it used to be at around 70%. So even before Corona, it was always around 70%. What will be a normalized level of COGS in terms of sales?

Yes. I would think for the year 2026, this looks pretty stable. Forward-looking, so in comparison to the previous years, we see a higher depreciation coming from R&D, simply because of the R&D efforts or the high R&D spend of the previous years. With the SOPs that we are launching, those depreciation is deployed now into the COGS section. But forward-looking '27 and upcoming years, we will see an improvement driven by the Phoenix cost saving program when it comes to material cost. As we don't guide yet, I would keep that number now for myself, but there will be an improvement.

We will move on to [ Ankur Jain ].

This is Ankur and I have joined the call from India. So first of all, thanks for giving us this presentation and it is very heartening to see the fruits of your early efforts of you and your team and they are bearing fruits and I am confident that you will emerge out of this turnaround with flying colors. So my best wishes for that. I have a couple of questions. One, Petra, you talked about the effect of war in the Middle East. Could you also talk about how this war has impacted the early sales that you see? I mean, the demand from the market that you see, is there any decline that you see in the demand coming out from...

Ankur, so this one is clearly for me. Luckily, we don't see the decline on the market. Petra is, of course, always pointing out the potential risk for the future and going forward. I can tell you that I'm very confident that even if the whole market would shrink, this does not mean that we cannot outperform the market and this is what we always do. We have lost a lot of market share and we have a great demand from the dealers and our customers and we are really trying to be patient with ourselves to allow the inventory to completely come down, as Miro was anticipating. Yes, we have pulled in already March. We ordered really also motorcycles from India, 7,700 were shipped. And all of April, unfortunately, they were supposed to come in April and this is not management mistake, they only came on May 4. So, yes, we will see some shifts, but the overall demand is there. The dealers are really, as I said before, in a good mood. I'm happy because it -- I think this is one of the big strength of KTM having more than 4,000 dealers worldwide who have really suffered for quite some time. But now I'm already thinking of how can I set the incentive now to boost even more sales, because as said, they're now happy. They make decent margins just selling without discounts. They don't have to finance inventory. So for them, for the first time, there is this relief and certainly -- and this is really the encouraging part, there is -- the demand is strong. We are outperforming in terms of registration most of our competitors. We're even responsible for the growth rates on -- in certain markets because we simply haven't had products available last year. So we're gaining back market share. And overall, even if the market would go down 2%, I don't think this will hinder us from growing.

Right. That is very helpful. And I also want to know, in your total sales, what percentage of your customers buy their motorcycles through the financing route? Some rough number would be helpful.

So we don't track it like Bajaj Auto where you have Bajaj Financial Services with Bajaj Auto. We sometimes support financing to give special retail programs. This is different than to the past where all the actions were focused on pushing out product and making the wholesale and we have now changed and offered with Santander Bank in Europe, for example, also retail financing. But what we do there is that we simply subsidize the interest rate by certain percentage points. These are some like sales or marketing efforts we are doing, but we are not tracking it with our sales.

Okay. Not an issue. Two more questions. One is on the motorcycles unit sales. I mean, this quarter we have sold 40,332 motorcycles. So just for clarification, does it include these -- the KTM bikes and the Husqvarna bikes which have been sold by Bajaj in India or are the -- is this number only?

No. A very important question. We are always focusing in publishing our numbers and when we talk about our sales, clearly the sales the Bajaj Mobility Group is making out of here and it does not include the units sold in India. So then this is really a substantially higher number. It's a good input. We should and I'm just looking at Petra, include that number going forward in the next quarterly statements that you see the whole magnitude. This shows you -- and this was also an encouraging piece that there was never in the last, I think, 18 months a question whether there is a justification for a KTM. Should it be still in the market or not? No. There is such a strong demand. To put it in perspective, I don't know if you saw Ducati sold in the last whole year only 52,000 motorcycles and we now sold 40,000 without India and I'm sure that we have superseded this in 1 quarter. We're closely behind BMW, who just, last week published also their results where they're slightly above the 40,000, but we are really regaining and we'll be soon -- but as I said, we're not growing for the sake of growing. First exercise, we need to become profitable, then we start to scale again. And this year is really a transition year where we're keeping ourselves disciplined to really allow the market to recover. What we tried to show you with the inventory slide is that at the end of Q1, our inventories levels should be really healthy again. And it's not only about absolute numbers of stock, but also that the stock is not aged and that you have the right stock in the right region. So a lot of that work is not visible to you, but we are really getting back on track and we're keeping some scarcity in some markets that the prices are coming up again. We never sell through a price. We sell through emotion, we sell through performance, through USP and we definitely want to come or get away from a discount brand.

Right. That's very clear, Gottfried. And now I have my last question, which is about the revenue. So this quarter we had revenues of EUR 331 million, which is the total revenue and the motorcycle revenues were EUR 272 million. And then there were bicycle revenues of EUR 1 million. So I wanted to know if I reduce this EUR 272 million of motorcycles and EUR 1 million of bicycles from the total revenue of EUR 331 million, so the residual revenue, is it right to understand that this residual revenue is coming from the sale of spares and garments and other parts?

Right. Correct.

Yes. That's the PG&A, parts, garment, and accessories, which is really a very profitable business, which we also able to grow. But this, of course, sometimes comes a little bit later if you're now selling more units and you have a higher selling in units. Some of this materialize a little bit later when you then sell the respective spare parts or technical accessories with those bikes.

We have a follow-up from Miro.

I have some follow-up questions, if I may. The first one is on the seasonality of the revenues because we so far had only half year sales and now you switched over to quarterly reporting. Can you guide us through the typical seasonality of sales during the 4 quarters?

Yes. I just wanted to say, as you know, but you obviously, rightfully has pointed towards the fact that you don't know the quarterly -- the past. Q1 usually is the weakest quarter in the season or in the -- amongst the 4 quarters. There is a higher season at the end of the year because due to shipment, a lot is sent over to the U.S. or to Australia and therefore sold from our perspective already in the last quarter. Usually, Q1 is, as said, the lowest one. We have started high because of the market has been cleaned. In the -- Gottfried has shared the details in the past. I would still expect that Q1 is a solid quarter, but on the lower end.

Sorry, just to ask again. You said you started high. What do you mean by this?

We started from our own, as we have disclosed it, 70% above the first quarter. So the market and our own performance have -- yes, we have overachieved our own expectations, which is good. But I would still think in the calendarization, Q1 is the weakest amongst the 4 quarters.

Okay. Which hints to even stronger Q2, Q3 and Q4. Good.

Correct.

Then typically, I mean, you have some U.S. business or U.S. dollar business. Typically, what we see is that some companies also report, like, a constant currency growth and in your case with the bicycles going down, you could also argue that in report on a constant scope growth or organic growth, can you provide us some numbers in Q1 what like the organic growth would have been, or like the constant currency growth, or how big the currency effect was?

We can add that, starting with Q2. From a pure financial position, we are naturally hedged, but your question leads towards the impact on the regions. We don't disclose the regional result in a P&L perspective. Therefore, we haven't done that yet. But I'm happy to give it a consideration for Q2. But we can look into it and can do a follow-up later on.

Okay. And the last one, will you provide us with like pro forma numbers for the new segments for the last year or even for the quarters, the 3 remaining quarters of the last year?

We will disclose -- in close alignment with the [indiscernible] team disclose the quarterly numbers at each quarter. So I am -- so the next one is pretty easy because you have half year 2025 and you have Q1 2025 now. So Q2 is, I think, already on the table. But going forward, we have to wait for each quarter to become actual to disclose Q3 2025 and then we are in a normal cycle and then we have all 4 quarters disclosed. So this is unfortunately from a legal perspective the approach we have to conduct.

So the new -- the 3 segments, off-road, street, mini, you cannot share already today what 2025 the sales have been or the split between the sales or something?

Okay. Sorry, then I misunderstood your question. We have -- the only segments we have is the motorcycle, the bicycle and other and other is the holding. This is how the BMAG is structured. We don't disclose the -- there is no segment called mini. We disclose sales numbers, but not from a P&L point of view.

Yes, and also off-road, street, you did not split up. You just had motorbikes in the past, right?

Exactly. Exactly.

You cannot provide the numbers before -- in 12 months, basically when you will release fully in 2025?

Yes. We'll have to wait till it becomes actual, yes.

Okay. What we usually see with other companies is that they provide pro forma figures. So maybe you can talk to your legal guy again [indiscernible], but anyway.

We'll try. We'll try. [Indiscernible].

And with that, we're coming to the last question in our chat box. Could you, even though you do not give an explicit guidance, allude on margin potentials? Are historical ratios still valid, or has something structurally changed so that margin levels before the crisis cannot be reached anymore?

So I'm looking to Petra because it's also a financial question, but I could clearly -- nothing has changed that we should not be in the position to reach those levels. We always want to positively surprise rather than negatively, so we have given ourselves some time before we start guiding and before we really start disclosing a midterm, which should show you the gradual increase in margin over the next coming years. But definitely, we're planning and have these as ambitious managers to come back. There are external circumstances like tariffs, if they are only, I mean, not long-lived and if it's only a short effect in 1 year or the other, yes, we have to fight them, but all our competitors are also facing them and those challenges which maybe they bring from one year to the other. But definitely, we should be able to come back, not only to old levels, but for me, historic cost levels are not a benchmark. The company has grown substantially, got too complex, too many business models. So if we're now focusing on our core, if we're streamlining, I think especially on the cost side, we need to become more efficient. And there is potential and alongside, we will have to see what is the product mix in the future. Going forward, are we able to enter into new markets? We have little bit touched upon that we're working also on a new platform in next 2 years to come where we address a totally different market. So definitely appetite is here to grow again and to also improve the margin substantially.

To follow up from the person, could you also go into the details of seasonality between off-road and road and what are the capacity utilizations in Mattighofen and in India currently and how fast could they be increased?

At the moment, we are running a 100% in Austria, which is -- but only a one-shift model. So we said we want to be and stay efficient with a one-shift model. The demand is high. We have already some outlook to add additional volumes in the second half of the year, which potentially would lead to some lines working in a second shift. I'm trying to fight it against and try to squeeze out as much as we can out of 1 shift because I think, yes, complexity then again goes up, but demand is there. So to answer your question, we could very easily double our capacity in Austria. I'm looking to Petra. We are not guiding production volume, so she's shaking her head. I'm not allowed to tell you, but I'm just giving you a feeling. I would say, 2/3 of our yearly production volume is produced in Austria, and 1/3 is shared amongst our international partners. Could you also go into details of seasonality? So now for us, the off-road season starts. We will launch the model year '27, which is now distributed to the dealers. At the end of the year, there will be EICMA. We will definitely present a complete new off-road generation, which will be a step change, the model year '28 where the first factory bikes will be seen at EICMA in November because we need to send them for homologation purposes to the U.S., otherwise they cannot race. There will be something coming. We are internally working, but that's a longer project to streamline the seasonality, because now we're producing in one peak the off-road season and in one peak the street season, which is a burden to our suppliers and dealers alike. And therefore, in the future, this is one of our projects to streamline also the production and smoothen out the seasonality. So I've spotted another one, if you scroll up, by Ankur and I think then we need to come to an end. Is it the peak debt figure or will the company require more tranche of debt?

We are very happy with the refinancing that we have achieved. We definitely look very closely at total cost of capital. Therefore, our overall target is to reduce debt forward-looking. And that should give you also the idea that we have been able to refinance EUR 550 million at a very, very favorable rate should give you guidance that we are solidly prepared to repay those funds in the given time that we could have also achieved at rates. And therefore, I don't expect significant increase in debt. Depending on the growth structure of the company, there could be some change. But overall from a gearing perspective, I don't expect an increase.

So appetite is there to pay back our debt as quickly as possible and of course, we need to show the strong cash flows in first place. This is what we will try to show you throughout the rest of the year that we're able to generate those and that we are also able to really repay our debt.

And with that, we therefore come to the end of today's earnings call. Thank you for your interest in Bajaj Mobility AG. If you have any further questions at a later date, please feel free to contact Investor Relations, Stephanie Kniep. A big thank you also to you, Mr. Neumeister and Ms. Preining, for your presentation and your time. I wish you all a successful day around the world, and handing back over to you, Mr. Neumeister, for some final remarks.

Yes. Final remarks is, it was really -- thank you for spending the time with us. We're looking forward to speaking to you in the near future and showing you continuous progress on what we're doing in 2026. Thank you very much.

Bye-bye.