BizLink Holding Inc. (3665) Earnings Call Transcript & Summary

Alright. Good afternoon and good morning to all of you. Thanks for joining BizLink's third quarter earnings call, which UBS is hosting. I'm Ally Chen, and I cover the industrial sector as well as market strategy. Ahead of getting started, I'd appreciate your backing in the Extel survey. Kindly give me and UBS your vote under the Taiwan and Industrial categories. Many thanks for that support; at this point, I'll pass the call along to management, Mike.

Thanks, Ally, and thanks as well to UBS. Good afternoon, everybody, and welcome to BizLink's third quarter 2026 earnings conference call. We appreciate you being with us today. You can find our financial results along with the accompanying presentation materials on our investor relations website. Once more, I realize a number of you likely use Outlook, so in case those materials haven't reached you, they're available on our IR website too. Please go ahead and visit there to obtain the materials as well. Today's call opens with Charles, who will go through our financial performance and business development. After that, Florian will talk about our operational progress and the capabilities we are expanding, and then Felix will offer his view on our strategic positioning and Outlook; following that, we'll move into the question and answer session. Just as in the calls we've held before, please go ahead and put your questions into either the public or the private chat. Prior to starting, kindly be aware that today's discussion might include forward-looking statements grounded in current expectations and assumptions. Actual results could differ materially because of various risks and uncertainties. For more information, please look at the safe harbor notice included in our news materials. Last, we want to thank UBS once more, and Ally, thank you, for hosting our results call yet again. With that said, I'll hand the call over to Charles.

All right. Thanks, Mike, and good afternoon to everyone. Before we go through the third quarter financial results, I'd like to frame them within the context of how BizLink keeps evolving and the more sophisticated business we are constructing. Let me just establish that frame. Our third quarter results show ongoing progress in growing the business and reinforcing operating performance. Across the past several years, we have widened our customer relationships, strengthened engineering and manufacturing capabilities, and deepened our involvement in some of the world's most demanding technology markets. The latest results show how these efforts are converting into greater scale and better profitability. Our third quarter results show continued gains in profitability. Gross margin widened, and disciplined expense management drove our OpEx ratio down to a record low. Combined, these improvements pushed operating margin to a new high. As the revenue base grows, we are achieving greater efficiency across manufacturing, engineering, and administrative functions, which supports larger and more sophisticated customer programs without operating expenses rising proportionally; this matters especially because our growth increasingly stems from products that demand greater engineering depth, faster response times, tighter manufacturing tolerances, and more demanding qualifications. Below the operating line, we keep pursuing initiatives aimed at improving our effective tax rate and strengthening how sales convert into net profit. The key takeaway is that BizLink is not merely getting bigger. We are becoming more productive, with an operating model that is increasingly able to support growth while delivering stronger profitability. Turning to the business, HPC keeps benefiting from sustained investment in AI infrastructure. For the first nine months of 2026, HPC power connectivity rose 97% year-on-year, and data connectivity rose 49% year-on-year, which contributed to overall HPC growth of 77% year-on-year. Power has contributed particularly strongly as customers tackle the growing electrical requirement of more powerful computing systems. In data connectivity, we have kept supporting successive technology generations across copper and optics, and that product transition creates both opportunity and operating challenges. Our capital equipment business has also performed exceptionally well. Since the 2023 base year, BizLink's SPE business has grown substantially faster than the broader wafer fabrication equipment market. That outperformance carried on through the first nine months of 2026, when SPE revenue grew 48% year-on-year. Our growth reflects wider customer participation, more content within equipment platforms, and greater manufacturing responsibility as SPE becomes more sophisticated in areas such as deposition and etching, and in lithography and inspection to a lesser extent. Across our other businesses, market conditions remain mixed, but we keep seeing progress in factory automation, specialized engineering application, and a market benefiting from electrification and infrastructure modernization. This business provides important diversification while contributing engineering expertise and customer relationships across the group. On a first nine-month basis, FA sales are up 18% year-on-year. Healthcare is up 7% year-on-year. Energy is up 13% year-on-year, and EVs up 21% year-on-year. I would now like to place our recent performance in a long-term perspective. If we trace BizLink's trajectory from Q1 2012 onward, several significant monthly revenue thresholds have been crossed — first from $50 million to $100 million, then on to $200 million. Each doubling of monthly revenue has taken us progressively less time, even though the scale of the business keeps expanding. What stands out especially is that customer demands have grown considerably heavier throughout this journey. We aren't merely producing larger volumes of identical products; we're delivering support for higher bandwidth, more electrical power, tighter manufacturing tolerance, and assemblies of rising sophistication. As we pursue the next phase of growth, our attention stays fixed on constructing the capacity, the capability, and the operating platform needed to carry a much larger business. Put differently, BizLink keeps scaling more quickly while tackling tougher problems — a reflection of how our operating platform has evolved. Bigger scale brings extra engineering resources, wider manufacturing capabilities, stronger purchasing leverage, and deeper customer relationship. Those strengths let us pursue opportunity that would have been hard to chase at an earlier point in our development. Simultaneously, steering through successive technology generation calls for substantial discipline. New product must be qualified and moved into production while existing program continue running. Our achievements in HPC power and data connectivity show our capacity to execute across these transitions, while SPE performance mirrors our growing ability to meet more complex manufacturing requirements. Interplex added just seven days of revenue to our third quarter consolidated results, with October standing as its first full month of consolidation. Its early operating momentum has surpassed our expectation at the time of the acquisition; that aligns with the broader strengths we have seen among comparable precision mechanical supplier, whose year-to-date revenue growth is approaching a doubling. Crucially, this momentum reflects the strengths of Interplex's existing business. Going forward, we see further opportunity to build on this foundation by combining our complementary engineering capabilities, customer relationship, and manufacturing expertise. We expect that opportunity to unfold progressively as our team work more closely together. Felix will cover the strategic implication in greater detail. Throughout this expansion, our objective has been to build productive scale while keeping financial discipline. High revenue on its own is insufficient. We must keep improving manufacturing efficiency, resource utilization, operating discipline, and the return generated by our investment while maximizing our flexibility to adapt to changes and to maintain confidence of our supply chain partners. The profitability improvement achieved this quarter demonstrates that these effort are delivering results. As our opportunity expand, capital allocation become increasingly important. Different business require different form of investment. In HPC, much of our focus is on new product development, qualification, manufacturing readiness for successive technology generations; in capital equipment, investment is more heavily oriented toward expanding manufacturing capability and supporting customers' growing production requirement. We evaluate this investment against customer demand, execution requirement, and expected returns, while maintaining strict discipline over working capital and operating expenses to protect cash and flexibility. After the capital raise we completed recently and the Interplex acquisition, our attention stays on managing the balance sheet prudently and on turning that investment into better earnings and cash generation as time goes on. With 2027 getting closer, the business is moving into its next phase of development, supported by a bigger revenue base, wider capability to meet rising customer demand, and greater operating leverage; we know that technology transition and the timing of customer deployments can make results vary from quarter to quarter, yet the progress we have made gives us a stronger financial foundation for the opportunity that lies ahead. In the end, scaling for its own sake is not what we are after. What we want is productive scale, which underpins sustainable earnings, cash generation, and an attractive return on capital. With that, I will hand the call over to Florian.

Thank you, Charles. Charles has already covered the financial progress we’re making as BizLink keeps growing. What I’d like to do is focus on the operational capabilities that support that progress, and on how we’re getting our organization ready to meet customer requirements that are becoming more and more demanding. Throughout our business, we’re seeing one common trend. Customers now expect suppliers to do more than just deliver individual components. They want engineering support, manufacturing readiness, supply chain flexibility, and the ability to take responsibility for assembly and even subsystems that are increasingly complex. That’s especially clear in HPC and SPE, where product complexity, manufacturing precision, and deployment requirements keep rising. A successful technology demonstration is only the starting point. To turn that technology into a reliable commercial product, you need qualification, process development, production readiness, and — very important — consistent execution. Innovation creates opportunities. Industrialization turns those opportunities into businesses. We’ve strengthened our organization around dedicated industry specialists and engineering teams that understand what their respective markets need. At the same time, we’ve been improving knowledge transfer across our manufacturing network and building our intellectual property, which lets proven processes and capabilities developed for one customer or application support opportunities elsewhere. Sales, operations, and finance and accounting excellence initiatives, manufacturing automation, and greater use of digital tools such as RPA are helping us improve productivity as the business expands. Process automation also lets us handle rising administrative complexity without a proportional increase in headcount. These capabilities are especially valuable as customer programs get larger, product generations change more quickly, and manufacturing requirements grow more complex. HPC is a clear example of how these capabilities translate into commercial execution. As computing performance rises, the physical infrastructure around it becomes more demanding. Power must deliver and cool higher electrical loads, copper must support greater bandwidth and signal integrity, and optics require manufacturing processes and integration that are increasingly precise. Our power business has benefited from successful transitions toward more demanding product generations. These programs require close collaboration with customers and careful coordination across engineering, qualification, procurement, and manufacturing. Our ability to prepare for new requirements sooner while supporting existing production has contributed importantly to our growth. In data, copper remains an important part of the infrastructure ecosystem, particularly where electrical interconnects offer attractive performance, cost, and deployment characteristics. At the same time, we’re expanding our participation in optical connectivity as customers address bandwidth and connectivity requirements that are increasingly demanding. Different technologies will keep serving different applications, which makes engineering flexibility an important competitive advantage. Our optical business has made meaningful progress in both technology development and commercial execution. During 2026, we demonstrated an optical shuffle solution at OFC, a CPO switch tray solution at COMPUTEX, and a 12.8T XPO transceiver at OCP. These illustrate our growing capabilities in precision optical assembly, packaging, and integration as well. We’re advancing next-generation optical scale-up interconnects, including development of micro-VCSEL-based technologies. These efforts build on our capabilities in precision optical assemblies and manufacturing and position us to address connectivity requirements that are increasingly demanding as HPC evolves. What we're achieving in optics is now showing up as real operational results. XFS has over doubled its monthly revenue run rate since January, and profitability has improved at the same time, which shows what comes from scaling an optical interconnect business that keeps getting more sophisticated. That gives us an essential base as we broaden our role in next-generation optical infrastructure. We keep advancing the relevant technology while also meeting the optical connectivity needs that already exist today. It's likely the industry will take up several architectures, and each one will have its own demands when it comes to bandwidth, reach, power consumption, and packaging. Because of our manufacturing and integration capabilities, we can take part in this evolution without relying on any single technological solution. Our demonstrations at COMPUTEX and afterward at OCP also made clear how we are getting ready for the shift toward AI rack environments that are fully liquid-cooled. We displayed a growing portfolio that covers high-current power distribution, liquid cooling solutions including cold plates, manifolds, and liquid cooling interconnects, plus monitoring and leak detection capabilities. Along with our long-established expertise in electrical and data connectivity, these developments boost our ability to serve AI rack architectures that are increasingly complex and to grow our content opportunities. In capital equipment, we're witnessing a comparable move toward greater manufacturing responsibility. OEMs in semiconductor production equipment are handling processes that keep getting more complex while they expand production. They require partners who can support increasingly sophisticated assemblies, subsystem manufacturing, testing, and integration, so they can put more resources toward their core technologies. We have been building up the engineering, manufacturing, quality, and supply chain capabilities needed to support this wider scope of work. Our growing participation shows the value of those capabilities, and the experience that comes from programs of rising complexity strengthens our ability to pursue future opportunities. Past HPC and capital equipment, our industrial business kept showing the breadth and adaptability of our engineering platform. We've seen activity in FA improving, while our specialized cable assembly and integration capabilities serve applications across robotics, aerospace, marine, medical technology, semiconductor metrology, power transformation, energy storage, and transportation. A number of these markets are established contributors, and others are still in early qualification or commercial development. Taken together, they show how expertise built for one industry can support opportunities in another industry, and our ongoing focus on productivity and operating efficiency makes these businesses more competitive. This leads me to an important part of our operating model, our engineering and manufacturing toolbox. Over the years, BizLink has built a broad collection of capabilities spanning cables, connectors, precision assemblies, electrical power, optical connectivity, specialized manufacturing, and subsystem assembly. Every capability has value on its own, but the bigger opportunity comes from combining them to match the requirements of a given customer or application. We don't go to every customer with the same product or solution. Rather, we pull from the capabilities available across the group, bringing together the right engineering expertise, manufacturing processes, and resources to address the problem in front of us. As our toolbox grows more comprehensive, we can solve more demanding problems and deepen our participation in customer programs that previously would have fallen outside our scope. We know exactly what we need to focus on operationally. Build up our engineering strength, get products to market sooner, ramp production faster, bring in more automation, use our purchasing power more effectively, and keep manufacturing flexible across different regions. Customer needs are getting more complicated, so being ready to manufacture and moving quickly on execution will matter more and more when suppliers are chosen. We're deepening cooperation among our businesses and our manufacturing network, while still keeping the specialized know-how each industry needs. Interplex brings another valuable set of capabilities into our toolbox. What it knows about precision mechanical engineering, chassis, enclosures, and subsystem integration fits well alongside the electrical and optical connectivity strengths we already have. Put together, these can handle more demanding customer requirements, especially in cases where mechanical structures, power distribution, connectivity, and cooling all have to be looked at as a whole. Our goal is to roll these capabilities out in a systematic way across customer programs and applications. We've already shown we can handle growing technological complexity while getting better at operational execution. The next step is to take that experience and apply it more widely, so our organization can take on bigger programs, faster ramps, and more manufacturing responsibility. With that, I'll hand the call over to Felix.

Okay, thank you, Florian. Charles has shown how growing scale is feeding through into stronger financial results, and Florian has walked us through the engineering and manufacturing capabilities that underpin that progress. What I want to cover is what all of this means for how BizLink is positioned strategically and for the next phase of our growth. Our view of HPC is increasingly that of a long-duration investment cycle, not just one technology generation. Computing platforms keep advancing quickly, and that is driving ever more demanding requirements around power delivery, data connectivities, mechanical structure, cooling, and system integration. Those elements are becoming more tightly interconnected, which opens up opportunities well beyond the compute devices themselves. Meanwhile, infrastructure spending is not going to progress linearly. Deployment timelines can be impacted by limitations in power availability, networking, facilities, equipment supply, and system integrations. Technology architectures will also continue to evolve, since customers are constantly optimizing for performance, cost, reliability, and deployment efficiency. Demand for computing infrastructure remains strong at its core, but the timing and mix of investment will change over time, and there is potential for spec upgrades within the same platform. This distinction is important, because it underscores the value of maintaining a broad set of relevant capabilities instead of relying on single technology or product generations; we see a similar long-term opportunity in SPE, that's semiconductor production equipment. Customers are preparing for manufacturing processes that grow more complex all the time, and a lot of them have firm investment expectations stretching out to 2030 and past it. The fact that we've beaten the wider equipment market by a wide margin in recent years demonstrates how heavier manufacturing duties and closer involvement with customers can open up opportunities that go beyond growth in the industry itself. At the heart of our strategy is taking part in technical change rather than betting on one architecture to win. Multiple computing platforms will exist side by side, GPUs and ASICs among them. Copper and optical connectivity will continue to meet separate needs, and power architectures will shift with system design and what customers prefer. We aim to remain platform agnostic — though not indifferent to technology. We actively participate in developing technology, work alongside customers and industry partners, and make selective investments in capabilities that remain relevant across successive generations. We don't have to forecast every winning architecture. What matters is staying relevant across them. Interplex Datacom represents a significant step in this strategy and in our evolution toward higher-value AI rack infrastructure solutions. By combining its precision mechanical engineering, enclosure, and subsystem assembly capabilities with our established electrical and optical connectivity portfolio, we are broadening both our addressable market and our capacity to deliver more comprehensive solutions. As AI rack architectures become more sophisticated, power delivery, connectivity, mechanical structures, cooling infrastructures, and subsystem integrations must increasingly be considered together. With our capabilities combined, we can cover a wider share of those requirements and deal with customers on a fuller level. In our view, this combination can create a competitive position that stands apart, letting us compete better as rack architectures grow more sophisticated while opening up chances for more content in each system. The goal isn't merely to participate in a larger market; we intend to be a stronger provider of high-value HPC solutions with greater capability. We'll concentrate on differentiated components, assemblies, and selected subsystems that complement what our customers are doing, which makes us more relevant to them as their infrastructure needs evolve. Interplex's strategic importance also extends beyond the AI data center. We can extend our current work in SPE, semiconductor production equipment, and other specialized industrial applications into precision mechanical engineering and subsystem integration. We'll pursue those opportunities gradually, leveraging established customer ties and demonstrating the worth of our combined engineering capabilities. Another example of this approach comes from our SPE business. Through expanding production capabilities and handling more advanced assemblies and subsystems, we've boosted our importance in customer programs. That calls for ongoing spending on production readiness, quality systems, capabilities, capacity, and regional support. Even so, it creates opportunities for stronger and longer-lasting ties with customers. In fact, our customers have become more and more collaborative in assisting us as we expand our capabilities and capacity, which lets us better support their own growth. As we engage earlier in customer development programs and take on more critical roles, we believe our competitive standing is increasingly determined by engineering collaboration, qualification experience, and execution capabilities—not price alone. Our history of acquisitions also demonstrates that we can integrate and scale specialized businesses successfully. SPE's quarterly revenue has grown fourfold since it became part of BizLink, and eaSys has almost doubled over the same period. What these figures demonstrate is the way our wider customer ties, production assets, and operational know-how can enable a company we acquire to achieve much larger scale. Throughout all our operations, we aim to strengthen engagement with customers by drawing on the full range of capabilities that exist across BizLink. Rather than merely adding to the count of products on offer, our intent is to tackle more intricate challenges, engage sooner in the development of products, and deliver greater value inside customer programs. As Florian explained, the growing set of engineering and manufacturing tools at our disposal allows us to meet needs that go past any single component. A customer might come to us initially for a cable or connector, yet the application behind it could also call for precision mechanical structures, power distribution, optical connectivities, or specialized assemblies. When we grasp these needs as a whole, we're able to boost manufacturability, accept a wider scope of work, and stretch our capabilities into neighboring applications and industries. That also deepens collaboration among our business groups, business units, and regional operations. Looking ahead to 2027 and beyond, building capability will remain a core strategic priority. Within HPC, we'll continue advancing next-generation copper and fiber solutions, plus more sophisticated power and connectivity products. In capital equipment, we'll broaden manufacturing capabilities and assist customers with their expanding production requirements. Groupwide, we will bolster our box build and advanced assembly capabilities so they can serve opportunities across multiple industries. The industry specialization and accountabilities within our business group and business unit structure will remain, even as we improve collaboration across regions. As customers enter new applications and new geographies, the ability to marshal expertise and production resources from across the company will matter increasingly. We are likewise keeping our attention on the financial returns generated by those investments. Growth on its own does not create lasting shareholder value. Greater scale and deeper technical capability must be converted into improved profitability, efficient capital use, and cash generation that is sustainable. Looking at what we've returned on capital historically, it's clear we've achieved genuine gains in BizLink's productivity at the same time as we've pushed into more sophisticated technologies and applications. Staying disciplined on that front will be particularly important as we put money to work for the next growth phase. As we look ahead, our optimism about structural opportunities in HPC, in SPE, and throughout the remainder of our portfolio remains intact. That said, we recognize technology transitions, customer development schedules, and capacity limits will generate considerable movement along the way. What underpins our confidence is the capabilities we've built, the customer relationships we've formed, and the operating progress we've demonstrated—not any assumption that every market will expand smoothly. Over the 30 years since BizLink was founded, the company has become much bigger. What matters more is that we've turned into a more capable organization: we handle products of increasing complexity, engage in broader customer programs, and unite expertise spanning multiple technologies and industries. The results from our third quarter provide further proof that this transformation is delivering concrete gains. We're achieving greater operating leverage, widening our role in a key growth market, and developing capabilities able to carry the next phase of our development. Our goal goes beyond expanding in step with the markets we serve. It is to grow ever more able to solve the problems that determine how those markets evolve. That's how we plan to keep scaling faster while tackling tougher problems. Thank you for your continued interest and your long-term support. I'll now hand the call back to Mike.

Thank you, Charles, Florian, and Felix. That brings our prepared statement portion to a close. Let's now move into the Q&A portion. As I mentioned at the start, please go ahead and type in your questions. I can see a couple already in the queue. We'll get to as many as we can in the time that remains. I'd like to remind everyone that no forward-looking quantitative comments will be provided. In fact, quite a few questions have come in regarding Interplex, since that's our most recent deal and it was a fairly sizable one, and naturally, it will also become increasingly meaningful for us. Some are financial and some touch on strategic topics. For this part, I'd like to hand things to two speakers, beginning with Charles, and then passing it to Felix.

Okay, thank you. So perhaps I should spend a moment on the figures and the way we view them. When we examine the early performance, I believe we talked about how we anticipated Interplex would now add, not simply at the moment we announced the acquisition. As I noted during the prepared remarks, Interplex added just 7 days of revenue to our third quarter 2026 results, so it is essentially invisible in this release. Yet we already reported our October sales over a week ago, and I think everyone saw that there is a significant jump. Why? Since October in fact represents the first complete month in which Interplex's results were consolidated into the overall business results. I think everyone would see that its momentum is in fact quite apparent. From our perspective, it surpassed what we expected when we made the acquisition; so perhaps I should give you a quick look; this is merely a one-time release to help with your model building. When we look at October revenue, in fact $67 million comes from Interplex on its own. Just to flag that we are providing this only as a one-time reference and to help you set the model baseline. That means this will not form part of our regular revenue disclosures. I think Interplex's performance from this point will be reflected in our overall consolidated result. That also, if we look at it, we also examine comparable precision mechanical suppliers. I think all of them are showing exceptionally strong growth. Some may even be approaching double year-to-date; also in Q3, I think the P&L includes only 7 days, but the balance sheet already includes their assets and liabilities. All of this acquisition-related amortization and margin implication will be addressed as our accounting is finalized. That covers the number part. I will also pass it to Felix for a discussion of strategic thoughts.

Yeah. I think it's clear to everyone that AI technology is advancing incredibly quickly. At the moment, each CSP may have its own requirements and specs, and they want to do things in different ways. If every CSP or every ODM had to handle each of their components on their own, or develop an entire system by themselves, that would consume a great deal of their resources, and some of them probably wouldn't be able to manage it. Bringing Interplex into BizLink's portfolio lets us evolve further in that area and also support our customers more as they develop their next-generation products. Take a simple example: suppose one system has 10 components. Previously, if you expected a CSP or ODM to look after every component themselves, or to verify whether those components had certain design issues, that would probably require 10 engineers from them. But if we can add that to our portfolio and come up with the system and subsystems for them, so that they only need to review what we co-develop and tell us the specs they need, then it's simpler for them, and it's simpler for us too, because for us it's our in-house capability. I think that's the main benefit. Again, this isn't only about AI data centers; we also see it in SPE, semiconductor production equipment, and even the medical industry. We're seeing more and more of it. I think adding Interplex into BizLink's portfolio is very important and gives us a considerable advantage compared with other players.

Thanks, Charles and Felix, for the feedback. Once more, Interplex matters a great deal to us, since a fair amount of the content we've shared up to now connects with how we think and with what we expect for ourselves down the road. Next, on optics, we keep getting plenty of questions about optics. Naturally, we've been fairly open about some of our displays, and we just named a couple of products. The questions that have come in are going to be more operational in nature, and again, more strategic. On that note, I'd like to turn things over to Florian and to Felix as well.

Okay, thank you Mike. Regarding XFS, I believe I mentioned during our prepared remarks that its monthly revenue run rate has grown by more than twofold since the start of the year, while profitability was improving at the same time. That clearly reflects market sentiment as well as how things have been shifting over the past couple of months; it shows the progress being made in scaling this existing business. Still, please keep in mind that this isn't a forward-looking statement, and it always depends on market absorption of the shift toward the optics business, and discussions remain ongoing on the technology side regarding when the technology will be ready. On the question of how XFS differs from competitors, the strength of XFS, and the very reason we acquired them, lies in precision optical assembly and connectorization on one hand, and on the other hand in the manufacturing process and the capacity to scale it up very rapidly, together with packaging expertise for higher data density, as well as manufacturing execution. Those, I think, are the main differentiators, along with the technologies and capabilities that motivated our acquisition of XFS; it turns out this is really something on which we can build our strategy for the future as well. Because density, and also complexity on the customer side, keeps increasing, and so these capabilities are becoming more important. You can see that by looking at OFC, where we displayed our optical shuffle, or COMPUTEX, the CPO switch tray solution we showed there, or also at OCP recently, the 12.8T XPO; this illustrates the technical progress. That said, technological development in the market right now is not very clear. Different technologies exist, and probably in the future different technologies will each have their market space. In addition, our next generation will include micro-VCSEL-based approaches. Also, since the variety of technologies is so great, we will enter technical partnerships with external partners to make sure we secure our market share in optics in the future as well; that's roughly what I can answer, but let's hand over to Felix, please.