Forvia SE (FRVIA) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to our 2025 results call and the CMD, together with our CFO, Olivier Durand. We are very glad to receive you and many thanks for -- those of you who took the chance and came to our headquarters here in obviously much more lively with you as an audience here. Thank you for that. So when I started last year, I gave a commitment, right? I said Capital Markets Day will be my first year, and here we are going. We are coming to the end of that first year at the helm of FORVIA. And I'm very glad we chose that timing for the day, because we are here to, first of all, discuss our 2025 results. And I think it is important to look at those and for you to convince yourselves about the performance capability that we have. And any talk about strategy in the future, it's going to be well grounded in that delivery from 2025. So let's start with the results. We will have first the highlights. I'll give you that part of the presentation, then hand over to you, Olivier, for the financial results. I'll do the '26 outlook after that. And then we go into the first session for Q&A. So that's your part. Then we'll have later on a second one also for the CMD. So the year started with setting 3 priorities for ourselves. And I will leave you the financial community know them as much as everybody and FORVIA right now. It's about performance, and there is increasing NOI and cash flow, helping the organic deleveraging. It's about transformation. We're going to talk a lot today about our portfolio during the CMD and how we want to sharpen and focus that. We're also going to talk under transformation about our intended Interiors divestiture. So there is clear decisions we are taking on the portfolio. That also has financial implications that I'm going to talk about. And last not least, culture. It's about our operating model that we push into a new league. We are going for empowerment and accountability of our tubes, and this has been showing already through a refreshed organization, a new leadership principles that we have been cultivating. And last not least, we informed about Simplify mid of last year. That program now is in full swing. So with that, let's look into our numbers. So first of all, very good news. All 2025 numbers are in line or above the guidance that we shared with you. So we have flat organic sales at EUR 27 billion when you look at constant ForEx and it was, in fact, EUR 26.2 billion at the actual exchange rates. Operating margin is up 40 basis points. So we have delivered 5.6% and one has to qualify that because that happened all with quite a bit of headwinds in the market. So tariffs hit last year. We compensated for them. Electronic shortages from Nexperia now on the DRAM side, it happened. We compensated for that. So our first year was really characterized by a strong effort of all the global teams to offset what was against us and to deliver beyond. We have initiatives in place to help that to EU forward. We are now at 6,400 agreed departures from FORVIA by the end of 2025. So pretty much 2/3 into the whole program where we envision 10,000 departures by the year 2028. You can see how we frontload that. Cash flow plus 47% versus 2024. We ended up at EUR 962 million, and all that it is a much better quality. So Olivier is going to report out on that. So less of an impact from working capital, but really fundamental savings and CapEx approaches that helped this big increase in cash. With that and the increased EBITDA. We are now at a leverage factor of 1.7x. Remember, we guided to 1.8x. So that turned out better. And with that, we could also reduce our net debt further than anticipated. We are now standing at around about EUR 6 billion. So that's EUR 600 million down from last year. And I want to really emphasize this is organic deleveraging, and it's good to see that we go the 0.3x, and that's the direction. We are now very confident that in a given year, we can do 0.15, 0.2x of organic deleveraging. So I want to, first of all, thank the FORVIA global teams for these results. Thanks for having accepted me as a new CEO. And thanks, we could run so fast together. That's really encouraging. So let's get back to the portfolio briefly. You will hear about how we structure the future. We are grow fields. We are going to declare that. And the kind of portfolio rationalization that goes along with it and that transformation including the Interiors divestitures that we intend to do leads to some impairments we had to do. So we do have net cash impairments that impact our net result. So through that, we are looking at a net loss of EUR 2.1 billion. So by no means, am I easy going about announcing that, but I'm equally confident that with the sharpening and the focus of our portfolio, we prepare for a much better value creation in the future for FORVIA. So last point on this slide is our net loss that we incurred and our continued focus on deleveraging leads the Board to a recommendation to the general assembly that comes later this spring not to pay a dividend for the prior year. So all in all, good operational performance, and you will hear more about the noncash effects we see in the net results. Let's go order intake next. So we have EUR 27 billion plus of new orders taken in with lower upfront costs than in prior years. I'm not completely satisfied with that number in itself, and we are developing a very strong push and initiative for 2026 to bring order intake numbers higher again. At the same time, the structure is very important. The structure of the new orders and is a very healthy in various regards. So you see from this chart that 34% of our new orders are coming from Asia and 23% of the global orders from Chinese OEMs. So both numbers are above our current shares in business. So you can understand how we grow in Asia and particularly again with the Chinese OEMs. Actually, in China, we have had record order intake of EUR 8 billion, and thereof 80% are with Chinese OEMs. So we're well tracked. We've even advanced our trend to be strong with the local OEMs in comparison to the play that the international OEMs have in China. Also, we picked up new customers in China. So we went beyond our strengths with BYD, Chery, Syk and others. We have now booked significant business with Geely with. That's a premium brand between Chery and Huawei. And also, we are now working with a new auto player coming from the tech field, who builds amazing vehicles and has chosen FORVIA as being a supply partner. So that's good. The other fields, that's the third graph here, I want to stress is our order intake in the electronics space. So 28% of orders come from electronics, also quite a bit ahead of our current sales levels. And here's a couple of really prime products that we will focus on during CMD. Zone modules being one of them. This defines the new architectures for the software-defined vehicles and we took in orders more than EUR 1 billion for that product. You'll hear about that in detail during the CMD. Last not least, you know that happening is spearheading our software technology and software efforts. Those are the in-vehicle app stores we do. We onboarded more apps to that. So YouTube and Zoom is now available for passengers in the vehicle through the FORVIA app App Store. And also, we could win new Chinese customers to use our technology there. Technology and innovation, it is, right? That's at the core of FORVIA, we have technology leadership, and that drives our growth. Therefore, I'm very happy to share another couple of examples of businesses that we took in this year and that we industrialize and bring to SOP. So we have significant wins in the area of the software-defined vehicle. Again, here's that zonal module that you'll hear about it as a really attractive piece of business because it starts from a proprietary chip that FORVIA HELLA has developed, and then it integrates with the hardware and the software on top. So we are going to see start of production in 2028 for that. If we go to the comfort and safety space, Lighting has brought up a new product, highly interesting. We call us floodlights. So you know all the little signal lights and for daytime running lights or the turn indicator that used to be some LED modules of certain sites. For our floodlights, we now use microoptics and we could reduce the size significantly. So what used to be a 40-millimeter little element in your head lamps now 5 million thick only. We save 80% of weight and 40% of the energy through that technology. That's the world first coming from for FORVIA HELLA, and that creates a very nice revenue pool for us going forward. On the Seating side, here, we'll have a deep dive today, I can announce that already. We have launched Zen Massage Seat. What is that? For the Asian taste, the typical European pneumatic massage is a little soft and we have developed a mechanical massage. And the important and impressive piece of uses, we introduced that first time in the Shanghai Auto Show last April, and we are now launching the product. So from a concept and a demonstrator to SOP, that's moving in 1 year only. So China sets the pace and FORVIA has the right speed to work to that pace. And last not least, Clean Mobility is also moving on technologically. You know that the highest internal combustion engines has a prolonged lifetime. You see that particularly in North America, but there's also technological evolution we are driving. So in particular, when it comes to hybrid vehicles and range extenders, there are special requirements to the exhaust systems. First of all, they have to be pretty compact. Of course, with the batteries and a range extender vehicle, there's only so much space in the vehicle, though we work towards that. And secondly, these exhaust systems have to be super silencing. If you happen to drive a hybrid vehicle, it can be annoying when you go from electric mode into crusher mode, you hear that, right? So we want to dampen down all the noise from vibrations from the exhaust as much as we can. So we see technology all over the brand. And the good thing is with those products you see here, it's always new revenue and profit pools that we open up to the world's first real innovative technology. A word on interiors. So this is part of the transformation, and we have made a very clear decision that we want to divest from the Interiors business. Current progress that we are in advanced negotiations with several parties on the divestiture of that business. So first of all, the business is very solid. It's a EUR 4.8 billion business. We have about 60 plants engaged. We have 31,000 people. And we have a world-leading position in that business. So why sell? Basically, at the same time, the business is fairly capital intense. It's not growing so much, and it's a mature market and fragmented market that we face. And therefore, we came to the decision that there must be better and more dedicated ownership to lead that business into the future whereas FORVIA can focus on our high-tech growth fields. Plus, it's very obvious that the divestiture brings us new financial flexibility and helps us bring the net debt down. So more financial details on that and on the results from Olivier. I hand over to you, Olivier.

Thank you, Martin, and good morning, everyone. So in the next few minutes, I will give more details on the financial performance of '25. But let me start with an accounting consequence of the advanced status of the Interior transaction that Martin just mentioned. We are applying the IFRS 5 accounting ruling, which is saying that you should present, in fact, your results, pro forma of the actual sale of Interior. So inside the financial report that is available actually in this room, you will see '24, '25 after this operation. So all operating metrics, sales, margin, cash flow will be, in fact, result interiors and everything reported in one line of the P&L and of the net debt evolution. . However, for the clarity of the presentation of the '25 results on the current perimeter on which we are, we present all the numbers before so that you can compare apple-to-apple. One exception, of course, is the net income because there is only one net income, and I will come to this one. '26 will be on the new perimeter and the guidance that -- an outlook that Martin will share will be on the new perimeter with the comparison of '25 after the sale on a pro forma basis. And one more thing is that the financial report that we are publishing for the transparency, for the clarity for all of us is providing P&L balance sheet cash flow before and after the IFRS 5 application for both '24 and '25. I hope it will help everyone to see the impact of the transaction on all the metrics. On this note, let me go through the detailed financials. So first of all, as Martin mentioned, flat revenues year-on-year on an organic basis. Let me -- you know that the ForEx is in fact having a negative impact with the decline of the U.S. dollar and the RMB. This has been the case most of the year, and you see the impact inside those numbers for close to EUR 800 million. Let me highlight that ForEx have in fact, no impact on the operating margin, basically, we buy and we sell in the same currencies in the big geographies in which we operate China, Europe, North America. Now from an organic flat perspective, let me highlight that product sales actually increased. We are tooling revenues that have normalized from the very high level of '24. So in fact, from a production comparison, you could say that product sales is 1.5% increase. If I zoom by business groups, you have electronics, which is a major growth engine. We increased by 12% year-on-year on this segment. We have Clean Mobility rebounding in the second half. This is both the evolution of electrification in some of the geographies as you know, but there is also the gain of market share that we have enjoyed in Europe. Lifecycle is also rebounding. Now on the more negative side, you have clearly seating evolution. So Seating is, in fact, currently penalized by the mix between Chinese OEM. You know that we enjoy a strong position with BYD, and we are happy to. But clearly, in the mix of last year, Geely has been growing faster, and we are less present with Geely. We have the continuation of diversification in terms of between the Chinese OEM. Martin mentioned the level of orders that we have with Chinese OEM. And you know that also in China, things can go fast. So we have currently less favorable mix in China, but that can evolve. The last element I would like to mention is that profitability-wise, China is still enjoying a double-digit operating margin, thanks to their cost action. Last but not least, Lighting, you have a respect of repositioning that is ongoing with end of production of some programs, not much by new ones. And for those that have followed HELLA yesterday, this is driving the evolution of HELLA. The mix by geographies. So I mentioned quite a bit about China, which is the mix between, in fact, BYD, Li Auto on one side that are strong customers for us that have, in fact, had a reduction of production in the second half. We have strong momentum with Chery, and we have progressively growing presence with Geely, but from a low base. On the other geographies, Europe and North America, which represent, in fact, 70% of our revenues are along the market, and we have overperformance in South America and even more important in the rest of Asia, which is one growing field, in fact, in which we have a lower presence and penetration than the rest of the world, but we will talk about how to expand in this region during the CMD part of the presentation. From a profitability standpoint, we have an improvement of the margin by 40 basis points. This is coming from cost reductions. The revenues are flat. You see the evolution EUR 273 million of cost reduction flowing to the P&L in '25. This is mostly about the EU-FORWARD action that we launched beginning of '24 on which the progress is quite fast. This is also the synergies with HELLA, another EUR 63 million for a total since the start of EUR 400 million and other actions as well as, in fact, the launch of the Simplify project, which we did in the summer of last year, which is about having overheads in SG&A and in operations at the benchmark of the competition by '28, which is also starting to contribute. So a solid evolution in the operating margin. All business groups except lighting, have contributed to this evolution. You see the main elements, Electronics, 140 basis points, Seating even with a lower level of sales and China has been able to increase by 70 basis points. And you see also that Clean Mobility continue, in fact, to progress. And I will say the lifeline, the duration and the value of Clean Mobility given the evolution of electrification is only actually growing. The Lighting. This is, in fact, the main item that we have to turn around after the sale of Interior that will be, in fact, the sole one to look after really from this standpoint. Cash flow. So we are at close to EUR 1 billion of net cash flow in '25. This is 47% increase year-on-year. This is also not only an improvement in quantity but in quality. The driver is clearly the level of investment. We have reduced investment from 7.5% to 6% of the revenues. And here, I'm talking about CapEx and capitalized R&D. And this means EUR 400 million reduction year-on-year. Actually EUR 600 million in 2 years. So you see in the graph that we are showing what we try to call the recurring net cash flow. Let me explain what it is. It is the net cash flow with the exclusion of 2 lines, working capital, which is not repetitive per se, as we all know. And what is inside the line other operational, which are more one-off elements that are not recurring in nature. You see that we have now a net cash flow that is dominantly on recurring aspect coming from increase of EBITDA, thanks to the increase in operating margin and the reduction of the investment. And this is done with still a high level of financial cost and restructuring. So it's a good evolution. We took the opportunity also to reduce the factoring inside these numbers. You see that we are going from EUR 1.3 billion to EUR 1.2 billion. And I think everybody should take that as a sign of cost confidence and good evolution. You know also that rating agencies are retreating these items. So I think it's important also to signal that for our debt investors. If you look in the details of the numbers, you see that we have financial costs that start to decrease, EUR 46 million down year-on-year. This is with the evolution of the net debt, even with the evolution of early interest rates. You have, in fact, an evolution, which is slightly negative on tax, nothing structural. It's resulting tax refund and dividends for HELLA, which are depending on the dividend themselves. So nothing particular. And I will come back -- we will come back in '26 about the restructuring because the restructuring from a P&L standpoint is peaking in '25, but from a cash perspective, we'll peak in '26. So you will see that the evolution in the guidance is mainly driven by the evolution of implementation of our actions, EU-FORWARD and Simplify, which increased the restructuring by around EUR 100 million year-on-year. But in short, close to EUR 1 billion of net cash flow in '25. Coming back to the Interior divestiture, maybe additional color of what it means for the profile of the company. It means a more focused portfolio, a simpler organization. This is close to EUR 5 billion in revenues. So we are showing you here '25 before and after, in fact, the pro forma presentation of Interior being out. You see that Interior being dilutive, it represents, in fact, an improvement of the quality of earnings of the company from 5.6% to 6% for the '25 results. And actually, it will also below the line, Simplify in terms of restructuring costs, in terms of also dividend to joint ventures because this portfolio has a few joint ventures mainly in China. From a debt perspective, it will lead to a further reduction of the net debt by EUR 1 billion. Let me say a few things about those items, which are clearly questions. In the -- the transaction is a very sizable one. Europe presents a major change of scope for the company. So inside this debt reduction, we have included all the expected impact of the transaction. In terms of debt adjustment, working capital pension, in terms in a way of leakage coming from joint ventures, when you sell a joint venture in which there is cash, but you sell the 50% or the 60% you have, but you deconsolidate the totality of the cash position. So here, we are taking the full impact. And this is also something that has led to sizable carve-out and separation and tax cost in order to have the perimeter in position to be transacted. But I would say that in order to assess what is the impact on the financials of the company, the real number you should look at is the gross debt reduction, the EUR 1.4 billion because this is representing, in fact, what will be the impact in terms of future financial cost. Why is that? We will have, in fact, less joint venture simplification in terms of cash operation. So we believe that, in fact, with this, we are able not only to reduce the net debt, but also to reduce the gross debt and therefore, the financial costs associated. On the P&L, as Martin mentioned, we will have in '25, a net loss of EUR 2.1 billion. This is driven, in fact, by extraordinary noncash-related charges coming from the portfolio transformation and rationalization. We have EUR 1.8 billion, which are one-off charges and they are all noncash. The first item is we have done the annual impairment test as following, in fact, the strategic review that has been done. This is leading to 2 impairments for a total of EUR 920 million. The biggest one is related to Clarion for us close to EUR 600 million. And the second one is related to Lighting for EUR 270 million. Clarion is about competitiveness. It's about competitive the portfolio, Lighting, it's at, in fact, the evolution of the activity from a short-term perspective and, in fact, the timing for the turnaround. The second category of one-off aspect is capital loss on the Interior divestiture for EUR 578 million. Let me highlight that there will be an additional EUR 150 million charge in '26 related to this transaction, which will be the cost at the closing itself. This is captured in our evaluation of net debt reduction of EUR 1 billion, let's be clear. But from an accounting perspective, it can be booked only in '26. We have the asset depreciation on SYMBIO, which is related to what happened with the joint venture and all the consequences, which is mainly what you saw P&L-wise in H1 and the deferred tax asset assessment, which is a consequence of the impairment. So really driven by the portfolio portfolio adjustment and the decisions that have been taken on them. Now on the debt maturity profile, as you know, we have been quite active on the debt market in '25, and let me say also in '24. In 2 years, we have, in fact, refinanced more than half of the debt of the company, of which EUR 2.7 billion in '25, and we have repaid EUR 3.4 billion. As important as what we did in terms of activity is we have diversified our funding sources. Of course, we are in the Eurobond market. Of course, we are in the sunshine market, but we have done some more. We have done a Chinese bank loan, and we -- and the most important of all is that we entered with 2 operations on the U.S. bond market, which is by far the biggest high-yield markets that we have worldwide. So we have access, and we have presence in all the major source of financing, which is good from a diversification point of view. The consequence of what we did is graphically evident. We have smooth the balance the profile heavily. You see, for instance, 27 divided by 2. For the first time since October. For the first time, since the acquisition, we have a maturity profile that is balanced. So we are, of course, reducing the debt. We are reducing the gross debt. But as important, we are derisking and clarifying the position and make the company stronger in terms of debt management. This will be further reinforced, of course, by the proceeds of Interior that will be directly in the reduction of the gross debt. From a leverage ratio perspective, this is what we mentioned before. Reduction of the debt by EUR 600 million. Leverage improved from 2x to 1.7x. And actually, we have done upstreaming of cash in different jurisdictions, so that the reduction in gross debt is actually EUR 900 million. On this one, we have a clear plan. We did some of it in '25. We have more to do in '26. So you can expect a reduction of the gross cash by a further EUR 500 million in '26, helping the reduction of financial costs, which is, in fact, the objective throughout our plan. And on this note, I refer to Martin.

Olivier, thank you. So let's look a year forward into 2026. Here is our outlook. Let's start with the market first. The auto production forecast is flat to 2025, and we expect to experience some decline in markets that are important for us, such as China, North America, but also in Europe. So we are going to start into a soft year in terms of sales, where, in particular, in the first quarters, we suffered from an unfavorable mix in Europe and in China. However, we have new launches in the make. So H2 in China, new business goes online. And the rest of Asia remains for us as a very good and a strong momentum. So what does that mean for running FORVIA into this year? Well, we keep to the same priorities and to the same discipline, it's about good cost control. We're going to continue to drive an EU-FORWARD and Simplify is going to pay into the results of 2026. So when we take that together, we will continue on our route to organic deleveraging. And then as Olivier explained in good detail, the Interiors divestitures will do its part to our gross net debt and then also to the leverage. So here's the numbers that we guide for in 2026. Reminder, all that is now according to IFRS 5. So we look at sales between EUR 20 billion and EUR 21 billion again at a constant exchange rate. The operating margin is going to be in the range between 6% and 6.5%, and we expect net cash flow to be at least 3% of sales. With that, we will reach a leverage ratio at 1.5x of EBITDA. When we do the strict comparison to our projection from last year, where we said we will be below 1.5x. We missed that 1 digit, and that's basically due to the ForEx development. So earnings from North America, earnings from China are not translating into the same EBITDA amount in Europe that holds us back from that. So we target 1.5x strictly this year. So I believe if you see how these numbers also in 2026, they are a very strong foundation for what's going to be our strategic plan. And that's up on the agenda. But in between, there's a very important agenda item as well, and that's Q&A. And with that one, I would like to hand over to you and look forward to having your questions. request please focus on '25, '26. I know you'll have many more questions for the strategy, but let's keep that for the second session.

[Operator Instructions]

Tomas Besson. Three questions, please. First, on the organic growth, you're pitching a decline of 3% to 4% organic growth versus flat production in '26. Is there something extraordinary happening in '27, '28 to lift the organic growth in average above 2%. Maybe it's not the right time to ask this question, as you said, but I find it surprising or maybe you can explain just why 2026 organic growth is so weak? . Second question. I remember Clarion has been at least in the way it was presented before has been part of electronics. Now you're separating it again from electronics. You do a big write-down on these assets. I mean, retroactively, it wasn't great. Is there a lot more to write down on the Clarion and why do you do that? Is there a plan to eventually completely get rid of Clarion for the second question? And the third one on one of the drivers of the '25 cash bid, could you just talk about CapEx and intangible CapEx in '26 and eventually after that, when you've cut that to below 6 or 6. What is a reasonable level? And is it going to be a headwind for free cash flow in '26 and beyond? And can you talk about what's going to happen to capital R&D as well because it's been a headwind to your profitability in '25?

All right. Thomas, thanks very much. It's a bit of a tradition you have in the first question. So let's go through them one by one. Let's start with that organic growth that we see into 2026. So what holds us back is a bit the customer mix, and that's both true for Europe, where we are weaker with Volkswagen and Mercedes than anticipated. And in China, we have that unfavorable mix in H1 from basically our BYD engagement. At the same time, as I said, we are going to rebound with new launches. And yes, you mentioned the 2% growth. That's what we anticipate for the period of our strategic plan. We are going to talk about it, but we see clearly that recovery for the outer years of that 3-year period you are referring to. Question #2, that really qualifies for the CMD. What's happening with Clarion, you already anticipate oh, you look at it in 2 ways. We're going to get that back to that. So basically, it's part of the portfolio separation that you'll hear later on, and there's good reasoning about it. Olivier, I would say, give a couple of comments on what's happening there in terms of the impairments, the noncash impairments.

So first of all, all those impairments are on cash, it's impairment of goodwill. The exercise that we are doing is, of course, to evaluate what is the value compared to what we have in the balance sheet. And we have tried to do it in a prudent manner, because the idea is to have 1 shot items in '25, but not in the future. So this is true for Clarion. This is true for Lighting. Strictly speaking, mechanically, you have no headroom by definition, but we have tried to take prudent assumption. And I would say what we are showing also in terms of metrics going forward should be an indication in this respect.

All right. Then I'm picking up the third question, how is it going with CapEx and capitalized R&D. So you see extremely good values for 2025. That had to do with, yes, we'll work on CapEx, and you'll hear later more about what are the approaches we are taking, but it also had to do with delay of some of the programs. So it's a twofold effect. One is sustainable. The other one with the delayed projects was specific to 2025. So what we target is to keep the combination of capital expenditure and capitalized R&D, clearly below 7% going forward. And you remember, we come from times 8% and an 8.5%. So clearly, below 7% is the guidance there. Olivier, you want to maybe comment also a little bit on the R&D effects?

Yes. So when we talk about this clearly below 7 is and capitalized R&D, so what we can call investments in total. Now specifically on the capitalized R&D. I think the indicator that we are all following is what is the ratio of the R&D that is capitalized. . You see that it has decreased in '25. And I would say this is a ratio that should be equal or decreasing over time. I think at the end of the day, what we want is true performance and true performance is cash. So I think it's the way to go. This is also why you see that the improvement in EBITDA year-on-year has been higher than the improvement in operating margin, which is a good thing. So not major changes, but probably the ratio should continue to go down a little bit. Besides the ratio, you have seen the decrease in terms of R&D spending per se, which is around 10%. Let me comment that on this one, actually, we did not reduce the innovation. So we are not -- it's not about preventing the future is about quality of the costing is about making sure that the projects are executed as defined at the time in terms of R&D spend.

Vanessa Jeffriess from Jefferies. You talked a little bit about the DRAM shortage before. I was wondering if you could talk about impact on margins in 2026.

Yes, that's a good question. So the next semiconductor piece that gets in the way. So first of all, we do use DRAM Clarion site and only on the Clarion business for the infotainment solutions. So the way we go about it is that where we see shortages, we gave for replacement, and we can stabilize the supply to the customers. And wherever we see price increases, that's probably the other part of your question, Vanessa. We foresee the same way as we have been very successfully last year around the tariffs around Nextperia, we have to forward these cost burdens to our customers and do that in a very consequent manner.

And do you think that's something that will lead to a pronounced second half?

Say that again please.

Second half weighting because of the delay in recovery. Do you think there will be a delay in recovering...

Are we going to see the recovery still in the year? I mean you saw last year's cash performance, and we are always pushing for really timely reimbursements through our customers. And you could see from the cash numbers and the cash flow last year that we are successful in doing so.

So maybe a little bit of time lag in H1, H2 in terms of cash, but not for the year. And the last thing about DRAM is that it's a small topic for us. it's a few tens of millions of purchase. So strictly speaking, this one is -- the goal is to have the impact, but the base is quite small. .

And just it delays in order intake you're seeing, do you expect that to continue throughout this year? And then should we see order intake really move lower each year?

No. I think it's well recovering in the marketplace. So the natural reaction of the OEMs last week -- last year when tariffs hit was to slow down also their new vehicle platforms, right? And then in parts of the market in North America, we saw that slowdown on electric vehicle platforms in particular. I think the market has now successfully reoriented to what regulation and consumers want. So we see a good pipeline of business coming in this year and feels like Clean Mobility is really benefiting from restrengthening, in particular, North America in that segment. Now we see strengthening of the numbers in 2026.

And then maybe this question goes a bit towards the longer term. But if we see from the good news on some local content, can you talk about the impact on your business?

Yes. for us as a global supplier, I mean, we play in all regions, right? And our principle is we want to be local for local, so produce for our European OEMs in Europe. That's the preferred way. And we fully support the direction that you is hopefully going to take in terms of local content mandate. Yes, we are in a position that we can also supply from other parts of the world if the cost mandates that, but when you think through the whole supply chain structure, it's really imminent that we protect our Tier 2, 3 and 4 suppliers. We got to keep that stable, and that's going to be enabled by local content rules. So I would say for a big Tier 1 like FORVIA. It is important. We want to produce here. We have a social responsibility for that , but it's even more important for the smaller tier suppliers.

Michael Foundoukidis from ODDO. A couple of questions. First one on the order intake. I mean, you already mentioned it a few minutes ago, but maybe on the Seating. Organic growth was not that good. I don't know about order intake, specifically, but we see some of your peers, especially in the U.S. being more aggressive or at least more vocal about some recent wins, probably some of it at your expense. So how do you see that in 2026 evolving? That's the first question. Second one on all the, let's say, impairments and one-off that we had from some of your clients recently, there's a debate on the suppliers' compensation. Are you entitled for some of them in 2026? Is it only cash? Or it could be something else. And then more generally, regarding H1 versus H2, you just mentioned of DRAM, but is there something else like the LVP that you mentioned that might explain why H2 should be much stronger than H1 in terms of margin?

All right. Olivier, I'm going to kick the H1, H2 sequencing question over to you, but let's go with order intake first. So as I mentioned, the EUR 27 billion are strong in structure, but they are not to my full satisfaction. And we see a couple of business groups where I would say we got to beef it up and come back stronger in '20 to '26. And that's true for Seating as well. Stay tuned on what we have to tell during the Capital Markets Day on the relevance of our Seating business and how we drive growth. So that's coming in just a little bit. For the impairments, as we speak, the OEMs have declared that there's obviously canceled electric vehicle platforms, and there's big supplier compensation coming potentially we are not so much exposed to these bigger cancellations. We have seen more volume degradation from the days of acquisition to what we delivered last year and deliver this year, but are not impacted so much by these complete compensations. Olivier, H1, H2?

Maybe just before a complement on -- because I heard quite a few questions related to compensation in cash by customers. And there is a question about how much is it inside the cash flow of '25? The DSOs that we have are, in fact, the same as the year before. So we are getting claims compensation. We had the compensation of the tariff, but it's more in relation to the cost themselves. And so in terms of collection, I have not seen any particular evolution and the numbers are not reflecting any. So I would say that the cash flow of '25 is relevant from this end. Related to H1, H2 in '26, I will say on both the margin and the cash flow, you should expect the seasonality that we have had in the past few years, not really no more, no less. If I assume on the cash flow, you know that we have certain items that are really more topics in H2 versus H1, a lot are related to tax. You have annual tax returns, you pay the tax in the first half. you have certain timings in different items. So I would say H1, H2, '26, the seasonality should be along the average of the last few years.

It's Ross McDonald from Citi. I had 3 questions. First one, sticking with the seasonality in 2026. Would you be able to confirm if on an operating margin basis, you would expect the first half to be in the 6% to 6.5% corridor? And maybe linked to that, on the free cash generation in 2026, how should we think about the phasing, let's say, of the cash out restructurings and the sort of year-over-year on CapEx is the free cash very strongly geared to the second half? Or do you see it quite balanced within the year? Obviously, the second question on tariffs. I know a lot has changed. And in many ways, it's very soon to be thinking about tariffs given the news over the weekend. Just be interested how you're thinking about the tariff margin in the first half, if you hear any potential changes that could be a benefit or a headwind on the tariff side, I appreciate it's very early days. And then finally, just on the factoring, very good to see you're working on getting that down now, I think, EUR 100 million last year. Is the target to take that down in EUR 100 million increments going forward? Or how should we think about reducing that factoring in '26?

All right. Ross, thank you. So I'll take the tariff question first and then kick the financial ones over to you, Olivier. So we are going to observe what's happening in the tariff world, right? So the Supreme Court judgment is certainly there. We're not quite sure yet what it really means how they're going to be reimbursement, yes or no. It's important to realize that in the last year, we stayed free of financial impact from that, right? That was really a nonmaterial. So we are on the safe side, first of all, with regard to possible reimbursements, yes or no. In terms of what's coming, are we going to go from 10% to 15% for all the world. It's speculation. It's not a rule at this point in time. we will stick to the same base principles that we discussed earlier. That means we will mitigate that effectively for FORVIA. And again, it starts with being local for local, having good content in the various regions. We work with the supplier base to further strengthen that. And whatever exposure is left over, we will go see our customers and ask for compensation in a very strict way.

So on the financial questions related in particular to seasonality. We are giving a guidance for the year, which is EUR 6 million to EUR 6.5 million. I will not give a guidance per se inside H1, but I would say that the goal automatically is to be in this range, but if it is, it will be on the low side. So you will have the seasonality comparable to previous years. But guidance is really on the full year, and that's really H1. Related to cash flow, maybe first to explain a little bit the evolution we expect on the net cash flow year-on-year before even the seasonality. The evolution that we expect is driven by two specific items. One I mentioned it is the restructuring increase. This is the implementation of the actions that we have taken. You see that in the P&L. And we expect to have an increase in restructuring cash out throughout '26 of around EUR 100 million. This is mainly in HELLA and this is reflected by the way, in the guidance that HELLA gave yesterday morning. So let's say, it's to accelerate the rationalization. It's part of the implementation of EU-FORWARD. It impacts, in fact, different part of the business. this time is more HELLA. The second thing on the evolution of the cash flow year-on-year is that we have specific one-off that we expect to settle in terms of litigation that can play a little bit inside. So just to say that the evolution year-on-year is not really on the structural item, but we are trying to capture the elements, let's say, in a prudent approach to make sure that the guidance is really minimum that we should for -- now between H1 and H2, I think the seasonality should be similar and you have a bit of working capital seasonality inside, but no more, no less. On factoring, I will not comment on the further reduction. I will say that we know perfectly that factoring is -- on the one side, it's a sort of funding. It's a source in some cases, of pressure to customer to pay, but it is also having a financial cost. So on a selective manner, why not? But I will not give a commitment and let alone a trajectory on this one, but we have this in mind. And I think with '25, we wanted to show that we do.

One very last question.

It's Jose Asumendi on your left. Just a couple of questions, please. On cost savings, can you comment on the planned cost savings for 2026. And can you give us some color by geography or product division, which divisions will benefit the most? And then Martin, can you talk a bit about the the margin evolution by division in '26, which divisions will drive the margin improvements, which ones you expect maybe to lag, but still improve year-on-year as we think about that margin range for the year?

Yes. Thanks, Jose. So that's quite a few detailed questions digging into the business. So when it comes to cost savings, I mean, every business group is encouraged, right, to move forward, push forward. But then we also have our central initiatives, in particular, EU-FORWARD and Simplify that are going to cross -- that are going to push across the board. So I would not want to go much deeper, tell you everybody is really working, and we'll do it in a same strict way as in 2025. We have developed a completely new approach looking at our numbers, a new approach in terms of being thrifty. We're going to continue that in a good way. As far as the margin ambitions are concerned, you see that we made good progress in 2025 for all business groups, but Lighting. And the business groups that have shown good tendencies and trends in 2025 are going to continue on that route. And we have a major repair to do on the Lighting side. So happy to have Peter Laier as the new CEO of HELLA here today, one of his top priorities is to bring better performance back to our Lighting team. So we will see a year of not-so-good performance. And Peter, you've ported out yesterday to the market what that will be.

Thank you very much to everyone. It's all the time we have left. We have another Q&A session afterwards. Moving on to next session. Back to you, Martin.

Yes. Thank you very much, everyone. And again, there is room for questions after the CMD part. That's where we're arriving now. It's time for the Capital Markets Day section. First of all, give us a minute to clean the stage for that, and then we'll kick off with a brief bio. Be alert. It's a really quick one. Here we go. It is IGNITE. IGNITE is our medium-term strategy and ambition. And you see the tagline, drive what matters today to unlock, what's next. So we will see now a sequence moat map on how we get to long-term value creation. And I consider 2025 was our year 0 of IGNITE. We had to lay out a first set of results that proof we can execute, we can transform and change FORVIA in a credible manner. So we split our IGNITE strategy into 2 phases. 2025 to 2028, we want to focus and strengthen the group and lay a very solid foundation for the second phase where we want to lead and grow. So Phase 1 is all about discipline and focus. So we are going to streamline our portfolio. We are going to strengthen execution. We are going to drive profit and cash generation. And that way, you saw we can deleverage. And a couple of initiatives that we already referred to this morning proof, yes, it's working. EU-FORWARD is materializing, Simplify is now in execution. And you have seen the new investment discipline that we show to ourselves and to the market. And last, not least, also the intended divestiture of the Interiors business is clearly pointing in that direction. So then for 2028, we have solid foundations. Financially, we have a strong balance sheet. We will have a very concentrated portfolio to enable growth. That's this Phase 2. We want to lead in growth. You will hear about what are the businesses we rely on. And we will have very strong ones in Electronics and Seating that I want to prepare for that growth at a much faster growth than so far. So the results of IGNITE will be a much stronger, more focused and more competitive FORVIA. Let's refer back to the 3 strategic priorities; best-in-class performance, business transformation and invigorating our culture. Today, we want to go an extended progress report on how we are in those 3 dimensions. So performance enhancement is taking place on the R&D on the engineering side, obviously, in our operations in the plants and there's a clear enabler for further productivity and the application of digital tools and artificial intelligence. We're going to hear about that one. Then the business transformation, it's all about sharpening of the portfolio and do that really for leadership positions that we are having with some of the elements of our portfolio, and that's where investments need to go. So we want to be clear with ourselves and you as the investors, where our CapEx, our capital allocations go with priority. Then we have the divestiture intended for Interior. So that's part of the transformation, a very first good and visible step. Let's now move into the third pillar, our invigorating culture. It's all about accountability and empowerment. And I told you earlier on, I saw really strong accountability already as a good cultural trade in FORVIA, but that element of empowerment of trust to our people, to our teams, that is new, and that is going to really resolve into much better performance. So we'll be faster, we'll be innovation centric and we'll take good care of our clients in that sense. So you see the 3 strategic priorities that I announced early last year are very relevant for the continuation under the IGNITE framework. So let's look forward 2028. Where do we want to be there? And here's a financial projection. Olivier is going to give you as usual more details afterwards. But we're going to be a $21 billion to $22 billion company. And this comes with an organic growth in the range of 2% over that time frame. But we also reserve for more divestiture in that number. So there's about, you'll see that from the detail about EUR 1 billion of revenue that we reserve for possible divestiture. The operating margin will be 7% and above. We expect net cash flow in the range of 3.5% and with that, we can bring down the leverage ratio to 1.2x. That's important. We have shown how we can do that even organically very well. And it's important because 1.2x in the automotive world, qualifies us for investment grade. So we've got to deliver that for a time, but 1.2x is the entry barrier we are taking. So with that, we are going to get to a very solid financial structure, and that allows for the growth in Phase 2, where we want to lead and grow. So here's the agenda. How are you going to go through the day. First of all, we will stay on IGNITE transformation. And I believe that's the most important part for you. What's the future structure of the company. For this part, I'll have Peter Laier, our new CEO FORVIA HELLA on stage. And then also Sebastien Limousin in the first row. He is the EVP for the Seating business. So we'll get you through that transformation part. Then after break, we get to IGNITE performance and Olivier Lefebvre, our COO, is going to take care of that. I'm going to take over for the culture piece, and then I'll leave give you on back with all the numbers to wrap it up, and we go into the second Q&A at the end of the day. So let's start with transformation. All right. We need to wake up everyone. So let's look into reshaping our portfolio and how we focus our resources on these areas where we have the strongest right to win. Here, the automotive trends. And I mean there's really powerful shifts happening, as you know, in the automotive space. When we go a bit through the various technology fields, so let's start with Clean Mobility. Yes, it's about electrification, but not only about pure battery electric vehicles, but also hybrid vehicles range extenders are coming up really in great numbers. Second field, connectivity. And the digital experience we have. Yes, we want to be always on as users. And the integration of our smartphones, everything has to be seamless. That's our expectation that's forming a strong trend. In the middle there, the software-defined vehicle. It's much more than just a buzzword. It really means that architectures for electronics and the wiring harnesses are strictly simplified. We get to fewer computers in the car, and that is very efficient and at the same time, more and more features of the vehicle are determined by software. And that is upgradable over the lifetime. So a very good trend that goes across all systems in the vehicle. Then if you go to the safety and comfort space, also there, consumers have more advanced expectations. It's driven to a good extent by the Chinese consumers. And when you then think about autonomous driving, automated driving, it's a whole new level that opens up space for more comfortable seating and many of those products we have. And for me, it's very important that our activities link well to these trends and that we even shape the trends with our technological innovation offerings. And you can see on the top electronics fuels at all, and that's why there's a super growth field for us. We are going to go into a deep dive a little later to say what are the specific areas that we grow from. But also Seating and Lighting, right, with that request for safety and comfort there's more content coming, and we are driving that. And even a seat is in the meanwhile well controlled by software. So that software-defined vehicle trend also impacts our Lighting business and gives opportunity to the Seating business as well. Clarion is clearly playing to the connectivity and digital experience. And last not least, we have our Lifecycle Solutions business, which serves aftermarket and you can see how that benefits actually from all the content that goes into vehicles. So in essence, our activities that we have are very well associated with the driving trends that we see in the market. So much for a technology quick overview. Then what are the market dynamics? We have a clear view on that. And there's a lot happening in Asia and in China, that's where the key growth is, and that's where we are focusing. And at the same time, the world gets very diverse. Regulations are specific to each country, to each region at least. And we know we follow that. And we talked about trade barriers, the tariffs also something to have in mind. How does FORVIA prevail in that kind of complex environment? So first of all, we have a clear global reach, right? The world is our marketplace. We want to be there for everyone, for all customers in all regions. That's the aspiration. We have a global footprint. So we are also close to our customers. When we discuss tariffs, we said, no, our belief is local for local production, local for local sourcing. So that's good because that proximity gives us also the intimacy with the customers that we need to score and to grow even faster. And this intimacy is really taking place with our well-established customers, let's say, in Europe, in the Americas, but as well with new entrants and in particular, with the Chinese OEMs. So from that point, I say we are very well prepared for our future growth. So before moving on, there is a quick summary, I want to give. Think about where we are right now. We say we have a portfolio that's well connected. The world is our playground, right? So what do we have to do? Now we have to select where we want to play the strongest, where is the strongest right to win. And that brings us, in fact, into that slide here. And I believe, ladies and gentlemen, that's at the core of the strategy, and I know you have waited for that center piece a little bit to know whereas FORVIA we are going to focus. So you see on the one hand side, the growth cluster on the other hand, the value cluster. So we divide our portfolio in 2 groups. And both groups have different roles when it comes to strategy. And both roles are very important to FORVIA. So it's not about important one over the other, but it's different roles in life. So in growth, we positioned Seating and electronics, where we enjoy a very strong tech leadership, where we have a diversified customer portfolio, and again, where we have the right to win. Here, we are very ready to invest, obviously, always in a disciplined manner, but that's the main stream that we want to pursue. And on the other side, when we look on the value segment, we have Clean Mobility in there. We have the Lifecycle business, the lighting business in the business and also Clarion on that one. So as I said, it's equally important, but the focus is different. Here, it's about real performance, performance, performance and cash generation. That value cluster fuels the future growth story of FORVIA's. So I think it goes without saying we need different leadership on both sides, right? One, with that clear performance focus, the other one sure, also with performance, but then with growth in mind. So we have different assets in those 2 different clusters. Let me tell you why do we choose electronics and Seating to be in the growth cluster. Well, electronics, we talked about the trends and how this is a super growth engine, software-defined vehicle electrification, autonomous driving, it's pretty obvious. There's just tons of opportunity. But all seating is growing in terms of content because there's better comfort expectations by the users. Those of you who have been using Chinese vehicles, maybe in China, have come to accomplish all that to appreciate all that comfort, right, that new seatbelt, but also safety requirements are still increasing for seats. The user experience is to be better, and there's also sustainability requirements that drive that Seating business. So we have good leadership positions in both of them. So then let me see -- why those 2 together? Let's have that look too, right? You understand the individual strengths, but there's also strength in combining those 2 because there's the ultimate growth happening in the electronics business. But also on the seating Side, we have resilient growth. Every car continues to have seats, that's good. But by that content growth, we are on that continuous ramp as well. So we have complementary business of something very resilient and stable. And yes, we take more chances and invest better risk a little more also on the electronics side. But together, it's a strong complement. So one step deeper, let's look a bit into the electronics business. We have a strong momentum going in that segment already with an annual growth rate of about 10%. That's where we are. And we have very strong leadership positions already in body electronics, in the energy management field and with our components business, components are sensors, including radar and also actuators. Going forward, we want to double down on a couple of elements, and Peter is going to share them. We believe that there are strong growth opportunities. We have zonal contributors with more integrated power electronics and also within cabin electronics. So Peter, we look forward already to your presentation, really doing a technologically deep dive into those areas. Overall, we see that we can even boost the growth rate of our electronics business. So when you think about the second phase, lead and grow is going to be in excess of the 10% we offer here a 12% CAGR perspective. Now going to Seating. You got it, right? There is more comfortable on the safety requirements that drives content per seat or content per vehicle. And we've played in the seating area very well from our China strength. Now that we are the leader there with the Chinese OEMs when it comes to Seating applications. We innovate locally very fast. They are very competitive in that field and a very fast and industrializing business. Those are strengths that we transfer to the rest of the world. So when Sébastien is going to be up and talk about his growth, it's going to be not only about the technology but also about further geographic extension. So Asia is a playing field, good focus has gone into India. We are going to talk about an extended customer base as well. Today, we are pretty strong in passenger car vehicles, but we can extend that very well to the commercial vehicle space. And then also in that field, we see strategic partnerships that we can have around the world as an additional growth driver. So Sébastien, you want to explain how you put growth into gear and make it to a 4% growth business in the future. That was the growth cluster and 2 businesses that belong to it. Now I would like to turn to the value cluster and give you a little bit of light what's happening in the various businesses there. With Lighting and Clarion, we have 2 businesses that will enjoy operational improvements. We are not at the top of the game as we speak. There is margin upside in both of them. So let's start with Lighting. There's a EUR 3.6 billion business today, and I think you can agree that FORVIA HELLA Lighting is the undisputed tech leader, when it comes to lighting over the last 100 years. Nevertheless, we got to focus costs. And we've got to be much more CapEx and cash conscious in that field because playing in that old premium segment was good. We want to expand that business to really hit the volume space. So first step is going to be bring cost structures in the right spot and then grow into the volume market much better. Going to Clarion. It's a EUR 1.4 billion business in cockpit electronics. Here, we are going to gain competitiveness through structuring our R&D approach and R&D costs much better. It has clear rationalization potential and another route that we pursue is looking for partnerships in that area, because the business is so R&D intense. And you can imagine the tons of software that go into an infotainment cluster, we want to be able to share these efforts with partners. So again, the business gets more R&D effective and therefore, then also more profitable. So in summary, performance, profit and cash to be improved on those 2 segments. Now let's look at the second part of the value cluster. We have Clean Mobility and Lifecycle Solutions in it. And those are already strong cash generators as we speak. So Clean Mobility is a EUR 4 billion business, and we are the world leader, both in terms of volume and technology. And I explained already earlier that there is an outlook also on more technology coming for hybrid vehicles for range extender. So we are going to keep boosting that. And if I have to characterize what is really important for that business. well, in a way to load our existing capacities because there is no doubt the number of internal combustion engines are still going to decline. So we want to remain and strong and secure a good market share and increase our market share to load existing capacities. We've been pretty successful in doing so. So customers give us organic business, and they help us also to organically consolidate. What does that mean? When customers used to do their own exhaust production and want to get out of it due to the transformation, they hand over these volumes to us. The same thing is true for players who decide to no longer play in that space. So what I call this organic integration and consolidation is something that we continue to drive. All in all, that results in double-digit margins and a fine cash generation. Last one on the list, Lifecycle Solutions. Here, it's a EUR 1 billion business, and we benefited very well from the strong HELLA brand in the aftermarket. Why is that business so successful over the years and very robust? Well, we have a good combination of knowing the OEM business of being with the workshops, we do diagnostics means and devices for garages and workshops. So we know what parts are being needed to repair vehicles. And then we have our aftermarket channels to bring the parts to the point of use. So that's a strong proposition. And again, it has delivered our very resilient margins and cash flow. Also, I want to give you an example, value cluster businesses can still grow. We intend to do that in aftermarket, right? Aftermarket is a trading business, we can grow in an asset-light manner by taking other companies' products and channel them into our aftermarket term routes. So you see how growth is not contradictory to being a member of the value cluster family. All right. So I think with this, we are through the most important piece, growth and value. Now let's look forward. We want to boost obviously, the whole company. I gave you examples also in the value cluster. We have 2 more dimensions in which we will boost the growth. And that is once by geography and then also by the customer segment extensions. So let's talk geographies first. China is a strong game of FORVIA's. Last year, we were 21% of our sales or EUR 4.5 billion after IFRS 5 in that market. And COM so far had 50% plus of our business. I mentioned the order intake, right? EUR 8 billion, 80% with Chinese OEMs. So that's putting the whole game into another gear. Also, the customer extensions we are doing right now. We said we are strong with BYD. In the past, we were not strong enough with Geely. We are adding Geely now to the portfolio, Lutz as well others. So that's good. You'll hear this year about just the new Seating partner that we'll be announcing. It's going to be of the same quality as we have been doing with BYD and Chery where we become a major partner of a large OEM in China, providing their seating solutions. So China is important, and I mentioned that, but I want to repeat it because it's really a learning and training center for us. We drive innovation locally. We drive it at speed. We drive it at great cost. So our global OEMs are going to benefit from that. And it goes without saying that we also joined the Chinese OEMs when they go their global expansions. So BYD, Chery, Leap Motors are now customers of ours here in Europe or when they go to South America as well. So in summary, we expect the further growth in China and particularly with the Chinese OEMs. So Chinese OEMs should represent around about 16% of our global sales by 2028. That's a I think, impressive number. So let's continue in terms of diversification and segments. Well, we have opportunity. We have opportunity with Japanese and Korean OEMs. We have opportunity in India, and we have opportunity in the commercial vehicle field. So let's start with the Japanese and Korean OEMs. I mean those firms delivered 32 million vehicles a year, 1/3 of the world market. And we are around about represented with 10% of the global FORVIA sales with Japanese and Korean OEMs. You can see what kind of an opportunity that is. Why is there a special interest by the Japanese and Koreans these days in FORVIA? It again goes back to China where we prove innovation, cost competitiveness, speed. So we just had a very fine order that we took in from Toyota this past year were exactly due to these trades and capabilities. They chose FORVIA into a commodity with Toyota that we have not served before. So again, China is really good practicing ground makes us very attractive. Next one India. By 2030, we expect that market to be 7.5 million vehicles. Our sales last year was EUR 450 million. Compare that to our EUR 26 billion, you see it was a smaller piece. And at the same time, we already have 6,000 people on the ground in India. They are of more than 2,500 engineers. So far, these engineers serve the global projects as extended workbench for R&D, and they are ready and capable to now drive local business. So what's easier than putting our engineers in India to work towards the Indian customers, both the international ones and the local ones. And also here, I want to leave a number with you we expect to double our EUR 400 million plus sales by the end of this decade. Good. And the third column here, very quickly. Again, we mentioned that already with regard to the Seating business. We have a great opportunity when it comes to commercial vehicles. Today, that segment is good for 2% of our global sales, that's really small. The market commercial vehicles are super attractive. It's driven by regulations. The products, the technologies are highly innovative, and we can enjoy a long life span once we get into these programs. Therefore, we have now structured dedicated product lines and also dedicated teams that are going to tap into the commercial vehicle market for us. So you see in both dimensions, geographies and customer segments, there's more we can do and we will do. So let's zoom out once more. I try to take all of you really on that IGNITE journey, right? So where do we start? Said, okay, we understand the trends. We know how the FORVIA business groups relate to these trends. We have IGNITE Phase 1, pretty much laid out, right, in its strategies, performance, transformation and culture. We look deeper into transformation and the portfolio, 2 clear clusters that are going to drive our capital allocations between the Grow cluster and the value cluster. And then if you go across the board, we have additional growth opportunity for everyone by driving the right geographies and extending the kind of customer segments we serve. So that's where we stand so far. And I want to invite you to 2 deep dives, we chose obviously the 2 businesses in the growth cluster to give you an idea, what are the technologies, what are the growth opportunities? So first one on stage is going to be Peter Laier for the electronics portion and then Sébastien is going to follow up on the seating side. Yes.

Good morning, ladies and gentlemen, as well from my side. As mentioned by Martin, electronics will play a central role in FORVIA's IGNITE transformation. Please allow me to start at first with a summary of the 3 key takeaways I want to convey in my presentation in the next few minutes. First, electronics business gives us over proportional growth opportunities with a very solid bottom line performance. Second, we are very selective in identifying our targeted business arenas, specifically in electronics to play to our strengths. And number three, we have already remarkable business wins in electronics and contracted technology partnerships with our customers that confirms that we have selected the right arenas to play. So in summary, the motor to remember is we are choosing our business arenas carefully to unleash profitable growth. So let me start on the next slide to show you which trends are shaping our industry and how we turn this into attractive business for us. Our electronics portfolio is aligned with the related key trends in electronics. Those trends are software-defined vehicles or in short SDV, the electrification of the vehicles and the powertrains and in-cabin user experience. The SDV trend increases the software content in the vehicle and the software content independent of hardware. That means this increasing software content and the related functions leads to a move from increasingly distributed architectures to less complex, more centralized EE architectures in which the centralized hardware is characterized by domain and zonal ECUs. And those ECUs are running the computing and the decision-making. By 2035, we expect somehow 60% of newly produced vehicles to operate in some form of those centralized EE architectures. Hence, there is an innovation race to be born being first to market with leading-edge technology. The second important trend you see on this chart is electrification. Despite some hiccups, which we have experienced in the Western world, electrification will continue to ramp up across all different electric powertrains. Electric powertrains will raise to approximately 70% of newly produced vehicles in 2030. We anticipate a prolonged period of parallel electrification. That means we will have mild hybrids. We will have plug-in hybrids, range extenders and full battery electric vehicles. But one thing all those technologies have in common, they will continue to drive an above-market trends demand for battery management and power electronics because all of them need to have solutions for electrical efficiency, and that is exactly what we can provide. The third trend you see on the chart is user experience in cabin user experience. This is on the one side, driven by enhanced safety regulations. And on the other side, by an ongoing expectation of sophistication of user experience in the vehicle. In the future, automated driving vehicle generations will have the need of driver behavior monitoring to fulfill safety regulations. This results in an increased demand of in-cabin monitoring solutions. At the same time, the users are expecting seamless integration of their own digital environments in the vehicle. This drives a demand for solutions that provide technology-agnostic connectivity and platforms for digital high-end offerings in the car of the future. We are operating in a market which is sizable and growing significantly faster than underlying vehicle volumes. As you can see on this chart, the segments we are addressing are EUR 30 billion plus in sales already today. And while vehicle production will only increase by around about 1% per year until 2030, we expect an average growth rate of around 10% per year in our slice of the market, and that means this market size will grow to around about EUR 50 billion by 2030. Our electronics business is actually around EUR 3.1 billion strong today. That means we have market share of around about 10%. As mentioned in my introduction, we choose our business arenas carefully to unleash profitable growth. And we have proven since many years with a strong track record that we are selecting our playing fields carefully. And that in line with the related segment attractiveness, our ability to differentiate and to play to our strengths. As you can see here on this chart, all areas we have selected to play, be it battery and power electronics, be it body electronics, be it selected components, be it in-cabin electronics, all of them will experience a high above average growth rate. So let me now talk a little bit what sets us apart and how we will win this game. So we have established and we will continue to expand our leadership in market positions and technology. We are already today amongst the top 3 in battery and power electronics in selected components as well as an in-vehicle app markets. And already today, we are generating 80% of our order intake in highly innovative and fast-growing areas of the business. including high-growth business with components, for example, where we are with our industry-leading radar sensors in a very good position. Our customers are trusting in us. We have already today over 50 OEM technology partnerships, and that reflects that our deep and long understanding of the customer relationship, our early involvement in technology and architecture is proving that we are the partner of choice. Our right to win in electronics is sustainated by a broad skill set spending the full value from components to systems, from hardware to software. And our market leadership provides us a scale which we need the cost base, which we need to ensure healthy returns. Let me now go a little bit deeper about the selected key growth drivers, which we have in our business and how this is shaping the mentioned industry megatrends. What you see here are 3 concrete examples how we choose our arenas carefully to unleash profitable growth. You remember the motto. In the arena of SDV, the newly related centralized EE architectures, here in this area, we selected specifically zonal modules as our area to play to our strengths and to win. And at the same time, we have decided actively to stay away from high-performance compute and the domain ECUs. In electrification, we have already today a strong base in battery management systems and power electronics. By combining both of them in our so-called energy management system, and integrating further functions, we provide a key enabler in the future for efficient energy management in the next generation of electrified vehicles. In regard of our in-cabin user experience, we focus on 2 areas: the interior monitoring and the in-vehicle app market. Our allocation of capital, as mentioned by Martin, as well as our resources is focused exactly on those strategically selected segments, where we can play to our strengths and realize profitable growth. If you look now to this slide here, let me dive a little bit deeper in the SDV structure and our strategy in that regard. But before I do so, please allow me to show a short video about the characteristics of EE architectures in the future. [Presentation]

Yes. As shown in the video, you can see that the shift towards those centralized EE architectures concentrates the value in domain and zonal ECUs. With that, we focus on zonal ECUs as mentioned, and we are then able to capture larger spend of spend of the OEMs in this arena. Our integrated one-stop shop solution for zonal modules offers chip design, hardware and software at the same time. This increases the agility and enables the OEMs in their transformation to central ECUs to act according to their needs and with that they have the partner of choice with us. First to market in execution with leading OEMs and the order intake of already now over EUR 1.5 billion provides tangible evidence that our customers trust in us and that we are able to grow in this area reliably. On the next slide, we make a little bit of deep dive in the different types of electrification, as I mentioned, from hybrid to battery electric vehicles, demand will increase in the next few years and there is a demand for advanced power electronics integration on system level. With our innovative X in 1 system, we are combining battery management board onboard charger, DC/DC converter, together with software-enabled compactness into 1 ECU. This new exin 1 system delivers somehow 35% volume reduction. 20% rate reduction and 5% efficiency improvement compared to the combination of the stand-alone components. Selected partnerships we have already with battery cell manufacturers and early OEM co-development positions us as a major player on the future of EV platforms. Our order intake is in 2025, over 1.2 billion just for battery and power electronics, and this provides, again, a clear evidence of customer trust in us and gives us a clear indication of future growth opportunities. In regard of in-cabin user experience, as mentioned, regulatory and insurance regulation standards are elevating safety requirements inside the cabin, specifically for increasing number of automated vehicles. This regulatory shift translates into tangible growth for us with in-cabin sensor content, which is increasing by somehow 20% per vehicle annually. In parallel, the connected vehicle rise by 10% per year due to the mentioned expectations and the seamless digital continuity, which we are having as a demand related with technology-agnostic platforms that integrate personal digital ecosystems into the car. We address both the opportunity spaces through integrated hardware and software capabilities, which we have. And in 2025, as a proven point, we strengthened our cooperation with Microsoft to enhance voice-enabled interactions intelligent content discovery as well as personalized user experiences. Our confirmed orders already today for interior monitoring cover over 5 million vehicles, and we have a broad adaptation for happening in the vehicles. As well, this provides, again, tangible proof of our growth opportunities in the future. So to summarize, we will expand our growth in electronic business systematically. Until 2028, we grow with a CAGR of 10% in line with the market. Earnings guidance for the same period until 2028 is 8% operating margin. And as mentioned, we prioritized investments in the mentioned high-growth innovation-led segments. From 2028 onwards, we expect a benefit from those prioritized investments as industry trends will scale further. Our growth outlook beyond 2028 is 12% or above, driven by market share gains on the one side and the creation of further leadership positions. Yes. With that financial outlook, I would like to close my presentation. I would like to thank you for your attention and hand over to Sébastien.

Good morning. I'm going to highlight today our ambition and strategy for FORVIA Seating. They are based on 2 pillars. The first one is resilience and stability, thanks to a balanced geographic mix, but as well a consistently improving operational performance. The second pillar is growth. We have a strong potential for growth, thanks to the exploration of new markets and new segments and thanks to innovation. So that's what I'm going to present. But first of all, let's look at our product. And let me start with a simple factor. A seat is one of the most complex systems in the vehicles. It interests numerous technologies and more than 80 components. We have more than 80 components per seat. In addition, a car manufacturer can order up to 20 different variants, just hours before deliveries. So managing this level of complexity requires deep expertise. One because we need to deal with metal, textile, foam, but as well electronics and sensors. We need more than 20 different skills to develop a seat. And in addition, we need to be compliant and we have to be companion with the most stringent safety regulations like OCS in the U.S. FORVIA is a unique competitive position. So first, we are #1 on mechanism and structure, and we ranked third on complete seat. Our strengths come from our dual business model. On the one side, we have -- we deliver high volumes and highly engineered product mechanism and structure from massified and regional hubs. On the other side, we have just-in-time facilities, just-in-time assembly. They are located very close to our customers to ensure maximum flexibility or activity. And this old business model gives us resilience and is highly cost effective. In addition, we have a balanced customer and geographic mixed. We are particularly strong in Asia, including China, of course, where we generate more than 30% of our revenue. Our stability and growing performance is driven by a strong industrial performance with the goal of setting the standards in manufacturing. So first, we rely on automation. Automation and artificial intelligence is to continuously improving our process. Secondly, on the second lever is a selective vertical integration in our just-in-time facility to further reduce cost and improve efficiencies. And the last one is modularity. We have launched a module concept for process and product in order to further reduce our costs and to increase our flexibility. A clear evidence of all of this is the factory you see here on the picture. We have been awarded as a lighthouse factory for outstanding performance by the World Economic Forum in January 2026 in our plant in China. This external recognition is an external recognition is a clear evidence of our leading position in manufacturing. Let's now look at our market, Seating market. This is a EUR 65 billion industry in 2025, but several segments are growing very fast. The first one is comfort and wellness solutions, with the growth expected from 5% to 8% per year until 2030. This is directly aligned with the premiumization we see globally, particularly in China. The second one, and Martin mentioned it earlier this morning, is India. India is another major driver for growth, and I will explain later while we are well positioned to capture this growth. The last 2 segments are different. So Japanese and Korean OEMs and commercial industry vehicles, these 2 segments are the segments where we have a strong potential to increase our market share, and I will show you a while later. To conclude, our growth pillar is a combination on one side on dynamic markets. On the other side, the exploration of new segments and geographies. Our stability growth is really fueled by our innovation road map. We capture the market trends, which are on one side, more comfort and better user experience, on the other side, sustainability. So let me share with you a few examples of our innovations. The first one is 60. So 60 is a concept of seats, which enables you to inside your seats at 60 degrees like that, while ensuring the safety of the occupant. So this is a strong demand from the market and from our customers and we have developed a unique position, a unique solution, sorry. On comfort, we are continuing to expand our best-in-class offer on heating, on ventilation on message. We have innovation in this area. In addition, we have developed a new concept of a sensor for OCS or occupant safety classification, which address the upgoing regulation in the U.S. Finally, and last but not least, sustainability. Sustainability is really embedded in everything we do, and I want to share a few examples. The first one is Clarion. Clarion is our solution. It's -- it's a recyclable material, which is an alternative to laser. It is made from recycled PET and this material Clarion enable us to reduce the carbon emission by 90%. And this material, corium, is already in serialized production for 2 customers. We provide as well lightweight architectures with low carbon steel demand from our customer. And we designed product from reseat. All these innovations you see here contributes to reduce our carbon emission, which is our goal and commitment. China plays a key role in our innovation. Actually, FORVIA -- FORVIA Group was one of the first Tier 1 supplier to invest in China, and we are now our Seating division, so FORVIA Seating employs more than 1,000 people in 3 R&D centers, serving major clients like Li Auto, for instance, or Chery or BYD. Our strong relationship in with the customers in China enable us to be at the forefront of the innovations. Why? Because it gives us speed and agility to develop our innovations. One example, and Martin mentioned it earlier this morning, is a 3D zonal message. You see here, we are able to develop this innovation in less than a year from concept to cell life production, and we did it in China. The second example I want to share with you this morning, and we developed it in China as well is the intelligent seat. Let's look at a short video. [Presentation]

What is the key takeaway of this innovation you saw in this video and that you can see in our facility today. What is the key takeaway? We are able to combine our expertise in comfort with our knowledge of software and AI to provide the best experience on board. And that's really our strength to have comfort and wellness expertise enhanced with AI and software capabilities. India. India is, as mentioned by Martin, one of the most dynamic automate market with strong growth projected at around 7% every year in order to reach a EUR 4 billion market for Seating in India in 2030. And FORVIA -- FORVIA Seating is extremely well positioned to capture this growth. Why? First, we are already present in India, and we have a long-standing relationship with both global and local OEMs such as Tata, Volkswagen, Mahindra and Maruti Suzuki. Secondly, we are now expanding our footprint in India. What we are doing is to move from a mechanism on structure footprint that we have today to offer a full complete seat footprint in the coming months in order to reach 10% of market share in India. This is our ambition, 10% of market share in the coming years in India. Another strong opportunity for us where we have really a huge opportunity to increase our market share is a commercial on industry vehicles. This market is a 7 million unit market in 2025 and it is considerable both in China and in India, where we are expanding. We have already built strong partnership, 2 examples one strong partnership with the European truck manufacturer on the on-highway segment, and the second one is a partnership on contract with an American manufacturer in agriculture. We have already secured a multibillion euro contract, which will enter into production in 2027. What is new now? In this segment, we are reinforcing our portfolio with a dedicated offer for commercial vehicles, accelerating in both segments, so in on-highway and off-highway. We are really developing product specifically adapted for this market. Our ambition is to -- is that these markets or commercial and vehicle segments represent 10% of our overall sales by 2030. Now let me conclude with our financial trajectory. On one side, our sales are expected to grow at 4% on average from 2028. This progress is driven by 3 strategic pillars that I just presented. So new products, new geographies and new markets. That's really one part. The second one is that we are focused on disciplined execution. Standardization of our architectures, automation and AI, selective vertical integration with a strong financial discipline of CapEx allocation. This initiative I just mentioned, are already visible in our manufacturing excellence on our financials. To give you an example, we improved our profitability by 7 basis points in 2025 versus '24. To sum up and in short, our transformation is both innovation-driven and performance-driven. Thank you for your attention.

Thank you. So let's wrap up the transformation session of IGNITE. So you saw we are working in different phases. Phase 1 of IGNITE is about discipline and focus, and that's true for a streamlined portfolio. It's true for a much more consequent execution. We will generate better profit and cash and continue our deleveraging that way. So we want to play to the strengths and those 2 deep dives served to show where the real strength sets its deep technologically rooted. So we are going to go into these established areas, but also selectively expand the portfolio. And with that, we get into a growth phase in the Phase 2 of IGNITE, where we can work from a healthier balance sheet and have a more focused portfolio. So we can expand leadership really in those technologies, where we have that long-term right to win and can create that longer-term value. So in summary, IGNITE is pretty simple and a good study has to be simple and can be communicated that way. IGNITE is to drive what matters today to unlock what next. So that brings us to what's next. It's a break, a 15-minute break. I would ask you, everyone be back at 11:40, make it 18 minutes. There are some beverages and little snacks available for the people in the room, and we see you back online as well at 11:40. Thank you. [Break]

So welcome back, everyone. We get into the next IGNITE chapter and that's IGNITE performance. For this, I would like to welcome our CEO to stage, Olivier Lefebvre, get us through that part of the program.

Thank you, Martin. Ladies and gentlemen, I'm glad to be with you today as a committed for the end leader to building an engine that drives value, scale profit and keeps us ahead. Today, I want to make one thing there absolutely clear. Our strategy for best-in-class performance follows 2 powerful directions. . First, we focus on delivering operational excellence now. This is our foundation, our core and it delivers fast and tangible results. Second, we use this strong base to scale our performance for tomorrow. That means driving the structural changes we need today. Let me take you through these 2 directions. Let's start with where we come from. FORVIA is a unique operating system, the FORVIA Excellence System. It already gives us a strong base built on safety, customer focus and sustainability. Let's start with safety. In just 3 years, we have reduced our accident by 3, thanks to the consistent application of our standard. Our option is total safety for our employees with less than 1 accident per million hours, a benchmark in our industry. Looking at our customers, we have improved quality year-over-year, reducing class by 30% to 2023. This progress earns us more than 160 awards in 2025. Our customers now see FORVIA as one of their best partner, responsive, proactive and transparent. Regarding sustainability, we have reduced Scope 1 and 2 by over 90%, thanks to the commitment of our site. And we reduced emission by 24% versus 2019, while keeping aligning our strategy with our customers. Thanks to our FORVIA Excellent System, FORVIA stands on solid foundation. Before going further, I would like to show you a short video that brings this system to life. [Presentation]

Our FORVIA Excellent System does not just create foundation. It boost profitability. You saw in this video, our FES drives continuous improvement, lower inventory, better equipment and labor efficiency, optimize material usage. It creates value every day. FES is also about performance discipline. When I review plant performance as COO in 2025, we focus on the plants with the most limited FES applications, located mainly in U.S., Mexico and Interior Systems. These are the plants at the bottom left of the graph. In just 12 months, by applying FES, these plants improved their margin by 3.5 points. This was a major contribution to our last year performance. From now, we are changing how we operate. It is a cultural change. We want FES apply everywhere at any time FES is not optional. But what is even more important by lifting up all our plants to the big blue square, we prevent any risk of deviation. And we enable the transformation of the potential we have identified to deliver operational excellence. . At the same time, we are also transforming in a structural way through 4 decisive work streams in order to scale the performance for tomorrow. Firstly, we are strengthening our operating resilience. Secondly, we need to further adopt their investment structure; and thirdly, we need to continuously improve our cost base. And finally, we are scaling digital everywhere and AI transformation on a selective with very high potential domains. This is how we achieve best-in-class performance. To secure our performance in a fast-changing business environment, we must adapt our value chain management and enforced cybersecurity. Best in client value chain management requires both on one side, resilience and on the other side, best cost. We already have 80% of our direct purchasing local to local that already provide a strong core, but resilience today requires much more. It means end-to-end transparency, proactively redesigning our supply chain network. And it means creating optionality before the next disruption, not after it. To keep delivering best-in-class cost in this growing complexity will leverage AI. AI sourcing agent for our purchasing team to capture the best opportunities, AI to optimize our transport along with organization transformation. This is tangible value creation. By 2028, our transport cost to sales ratio will drop by 20% versus 2023. In short, we are securing our execution by tackling the biggest external challenges in a structural and competitive way. We are also boosting our agility by bringing CapEx and capitalized R&D, clearly below 7% of sales. We've already accelerated our development lead time to match Asian market expectation. And last year, we cut lead time on key European programs by up to 50%, thanks to a smarter balance between standardization and targeted customization. The key point now is to scale these achievements. By leveraging our know-how, our lessons learned and our best practices with virtual twins will reduce development hours on all our programs by 30% by 2028 versus 2023. On manufacturing, we are reducing our CapEx to the minimum needed to operate, but without compromising performance, thanks to a stronger discipline in how we allocate CapEx and shape our footprint. Thanks to standardization and lean design to massify equipment and lower cost and also by limiting investment, thanks to higher equipment efficiency and reusing asset. In short, we are reshaping our investment base to fuel sustainable growth as we saw before, and stronger cash generation. The third pillar of our transformation is how to define a more competitive race powered by, on one side, smart automation and on the other side, a simpler, faster organization. With more than 2,000 AGV and 7,000 robots already in service in our plants, we have already proven that how selective automation boost productivity and optimize cost. Now we scale this globally, focusing on short payback opportunities. This will help us to increase our labor productivity by 10% by 2028 and striven our margin. At the same time, we are simplifying how the company works. We are driving a real cultural shift, fewer layers, faster decision streamlined and AI agent to automate end-to-end processes. This is our Simplify project to deliver EUR 110 million in cost base reduction. In our market, defined by speed and competition, we are moving to operate faster, lighter and stronger. Our fourth axis is our digital and AI transformation. Our ambition is clear: connect, integrate and scale AI to unlock value creation. Creativity is already transforming our performance. We have today more than 5,800 production lines that generate real-time data, structured data in the cloud. This power quicker deviation detection, faster problem solving, process parameter optimization and strong plant performance through tools like, for instance, predictive maintenance. We are also eliminating intermediary system that break digital continuity across the product Lifecycle. Within 3 years, sales, engineering, purchasing and plants will operate on a fully integrated system. That means better cost and margin visibility and seamless data continuity from R&D to manufacturing. And finally, we are leveraging AI to increase our value creation. From our business transformation studio, we are industrializing the development of AI focused on high-value creation and quick payback digital bricks. We are scaling more than 30 AI agents moving from decision support to automated decision-making. So every function can lift its performance. As already underlined by Sébastien in the Seating part, we are very proud of one of our plants. This plant has been recognized as a lighthouse factory for outstanding productivity by the World Economic Forum. Let's immerse ourselves in the Yangcheng plant to discover how they connect, integrate and scale AI every day. [Presentation]

To conclude, we built on our greater strength, the FORVIA Excellence System to deliver operational excellence everywhere at any time. At the same time, we are driving for structural transformation that will scale our performance for tomorrow. Together this strategy, we lift our operating margin from 6% to above 7% by 2028. Leadership is always making the difference. And this is exactly what Martin will talk about now in the IGNITE culture chapter. Martin, floor is yours.

IGNITE culture. The third element of the strategy. The question is how do we operate as an organization, and that is actually the key to delivery in the end. So coming in and looking at FORVIA, I came to a quick conclusion that we have to refine the operating model. We have to be simpler, faster and more accountable at the same time. So we touched on the organization. We are undergoing an organizational refresh, and we are also cultivating new leadership principles that I would like to share with you this morning. At the back of it is all about empowerment, empowering teams while at the same time reinforcing accountability. So a more agile organization in my eyes is absolutely mandatory to master the complexity and the volatility of the market. We want to go deep, right? We want to have people decide where the decisions are needed, and that's the empowerment I'm talking about. So let's look at organization first. We've announced last year in October that we are going into a division-centric organization. So I want to explain what that means. Divisions in our language are business units that act locally. So it's a subgroup of a global business group. So let's say Seating in China is a division or Electronics North America is a division. And this is where we strengthened the organization and the accountability a lot. Why do we do so? Well, those are the people on the ground, right, closest to the customer, closest to the market, they know what's needed. And traditionally, that division has already owned its operations as well. So you do everything from the customer and in the plant. What we are changing right now is that we are reducing the matrix organization that was in place. So divisions used to get engineering services from a central engineering organization. And I did not find that very good because then accountability is diluted, right? You want to give the engineers that are needed to launch products to these divisions. And that's what's happening right now. At the same time, we're increasing authority limits for the divisions as well. So within our disciplined framework, they have now greater rights to choose how to invest into their CapEx or what kind of contracts we have with the customers. So I find that authorization is very important, also clear sign to the divisions we mean it. We do empower you, but also we expect results. So there's this full accountability for the outcomes that is important. Full accountability means you get everything you need to do business successfully. At the end, it's about delivery. It's not about excuse in that framework. So the result are faster decisions, better adaptability and good ownership. And that for me is a key enabler for IGNITE. So now let's look bigger. Obviously, IGNITE is driven by our employees and is facilitated through good leadership. And therefore, we are cultivating 3 principles: Guide, empower and recognize. So our leaders are here to guide in the first place. So we're setting the directions, we are giving the priorities, and we are removing obstacles for the teams. Second, on empowerment, you got that through the division-centric organization. We want to make decisions at the point of impact. We show trust to our people. We enable them to deliver, but also we hold accountable to the results. Third element is recognition. I tell you, we have been always pretty straight and direct with our feedback in FORVIA. I want that to happen in both ways, right? We talk about critical things. And yes, we are ready to take that critique, but I want also as to recognize good performance and really foster that collaboration, that team spirit and value good results. So that's why we've picked #3, the recognition. I want to assure you, those are not only aspirations, guide and power recognize. But first of all, we work with the leaders to establish those principles, and we do also measurement for it. So already last year, our top leaders got feedback from their teams. So how am I in guiding empowering and recognizing? And that feedback went into the performance appraisals, finally into the merit for those top leaders. We're going to do that this year for all 6,000 leaders in FORVIA. Everyone, single one of us is going to get a feedback from our teams on guide and power recognize, and it's going to impact my performance appraisal every year. You see how we have systematic leadership development now in place as a transformation driver. Okay, no clicking, puzzle, which means we come to the next stop. Olivier, wrap it all into financial for us.

Good morning again. And you have seen that we have set FORVIA, a clear strategy, clear priorities, clear choices. But now I would like to show how they translate in financial outcomes. I will focus on 4 key messages. The first one, a restored balance sheet. We have progress that we have achieved, and we have the forthcoming divestiture of Interior. . The second message is about a new way to manage the company. We have differentiated activities in 2 clusters is a differentiated approach, which enables clear and decisive investment allocation. Third is about structurally improved financial metrics about cost reduction and a stronger recurring cash flow. And fourth, what will be FORVIA in '28. FORVIA in '28 will be a solid and resilient company with a clear financial structure with a focus on the development of electronics and Seating and the flexibility to fully unlock those possibilities while maintaining strict financial discipline. So let me go through the different points. First point is about the balance sheet. So we have strengthened clearly the balance sheet since the acquisition. And 2025 is showing an acceleration of the organic deleveraging. We have -- you have seen the number earlier on. We have reduced organically the leverage by 30 basis points on average since the acquisition, the organic deleveraging is 20 basis points. The second is that the situation at the end of '26 will be, in fact, through the organic cash flow generation, organic deleveraging, but complemented by the interior divestiture with more than EUR 1 billion of the net debt reduction, a company with EUR 4.5 billion in debt, EUR 1.5 billion in leverage. On both metrics, it means a division by 2 from the start of the journey since the acquisition. At the same time, as you see and as I showed this morning, we have refinanced 50% of the debt. So from a debt maturity profile, we are with a balanced maturity 3.4 years of average, and we have the diversity of funding. So we have a stronger and more resilient balance sheet that we can start with. Looking to '28, company will be more focused and more disciplined in fact, with a disciplined capital allocation and it's restoring the financial flexibility. How we will do that? It's about the 2 clusters because it will mean differentiated management, differentiated investment allocation, selective investment. The second is that we consider a further selective portfolio optimization, as you have seen, and I will go in more details we are contemplating an additional divestiture in the value cluster to further sharpen the profile of the group. So as a result of this, by '28, we aim to be at 1.2x in leverage, which is setting to be eligible for investment grade, given the metrics of this industry. And this is enabling us in fact, to unlock the growth in the selective technologies and addressable market that we want to address in electronics and Seating, but with a clean and solid balance sheet. Now what is giving confidence in fact, in this trajectory. But the first step is what Martin was calling the year 0 of the plan, which is the achievement of '25. I will not come back in a lot of details on this, but clearly speaking, 40 basis points improvement in operating margin, and this is coming from cost reductions, improvement of the net cash flow in both quantity and quality, up 47% in quantity and in quality, much more recurring because it's based on EBITDA improvement and reduction of investment. And as a consequence, the evolution in debt and leverage that we mentioned earlier on. And on top, inside this, there is a better utilization of the cash we have because we have reduced the gross debt not by EUR 600 million, but actually by EUR 900 million, and there is further progress in terms of utilizing the cash that you can count on in '26 by around EUR 500 million. So that will help the reduction of the financial cost even more. The second -- of course, the second element that is giving a solid situation will be the planned divestiture of Interiors. It's a pivotal milestone. It's changing the profile from a portfolio standpoint. And we will be able to be more technologically driven in the new setup of the company. You see the evolution in terms of profitability since Interior is actually dilutive today. And you see, as I mentioned earlier today, the debt reduction, and I want to stress again that, in fact, you have to look at 2 metrics, the net debt reduction, but also the gross debt reduction because we will simplify the structure, less joint ventures, less complexity in terms of location, means better cash management, easier to create cash to consolidate the cash pooling. It means gross debt reduction of 1.4% and the financial cost is associated to this number. On top, you have a complement, which is -- if we're less joint ventures, we have less dividend to minorities, that is also helping the translation of actual cash flow performance in net debt reduction. Now the second message is about driving the portfolio, driving the mix in a way. So we have shown you that we are differentiating the different businesses between the growth cluster and the value cluster. But what are the relative weight of them? We will start with basically a 50-50. So you see that in '25 pro forma of the divestiture of Interior, we are talking about 50% of the business in growth, 50% in value. In '28, we will be close to 60%. And leading midterm to 2/3 on the growth cluster in -- given that the growth is automatically in the first one. So -- and it means that the sales growth potential is increasing accordingly. And let me go in a bit more detail in each of those clusters. So starting with the Electronics and Seating growth cluster. Here, what do you have? You have an Sébastien, Peter presented in more detail the different businesses, but you see the trajectory in terms of growth. Electronics, 10% CAGR, 15% to 28% at constant ForEx, accelerating afterwards with the expansion of the benefit of the leadership position that you imagine and with the technological advantage. In terms of Seating, the 2% is for '25 to '28, accelerating afterwards. Now the growth in Seating is a bit different. It's about enlargement of the CTV and enlargement of the market. So you can derive that, in fact, the embedded growth of Seating is more than the embedded growth of the car market volume because we are attacking markets in which we are not present today. So CVI and India. In terms of profitability, first of all, you have a mix advantage the more electronics, the better the margin. The second, you have the cost efficiency and competitiveness on both R&D, but also in terms of operation. I think some of them are also related to what was mentioned on the operations. So we aim to be above 7% on this activity. And if you take an aggregate CAGR of this growth cluster, you are at an aggregate CAGR of 25%, 24%, but actually 6 after '28, which is giving you the potential of this evolution. The value cluster here, you have 4 businesses today, and -- as mentioned earlier by Martin, the situation are not exactly the same. You have 2 groups inside. You have Clean Mobility, Lifecycle that are already solid cash conversion. And I would say Clean Mobility, given the evolution on the electrification as a bigger value than it was 2 or 3 years ago. And clearly, we are very happy to have it. And Lighting and Clarion -- Lighting and Clarion data in need of repositioning and competitiveness recovery. From a revenue standpoint, you can expect organically to be basically flat between '25 and '28, but you see that the drop in revenues that we are showing here is related, in fact, to potentially having additional divestiture if and when concerns are met and appropriate inside this domain that will even more solidify the evolution of the balance sheet, but it's only if it is meeting the conditions that we set ourselves. So that's why you have -- in fact, on face value, a decrease in revenues inside this cluster for the period. From a profitability standpoint, we expect to be also here above 7% by '28. This is coming from cost reductions. This is cost reduction, competitiveness in particular, Lighting and Clarion and to further develop the profitability in Clean Mobility and Lifecycle. We know that were, for instance, Clean Mobility, we have some possibilities compared to benchmark. What does it mean for the aggregate company? And this is, in fact, starting my third message about what it means in terms of improved financial metrics for the total group. First of all, selective growth, 2% organically over the period, '25, '28 before this potential divestiture. The second is about sustained cost actions and recurring cash flow conversion that I will show in the next page. So evolution on revenues, the growth is coming from the cluster of the same name. And in terms of profitability, you see that the majority of what we expect an improvement in profitability is coming from cost measures in both -- actually in both clusters. So not only value but also in terms of the growth -- the growth cluster. The volume and mix, and I would say almost first of all, the mix is because we are driving the evolution of the mix with the development, in particular, in electronics. So overall, to be above 7% over -- by '28. Now the conversion in cash flow. We are -- you see that this graph is continuing to talk about a bit 2 metrics, the net cash flow per se, but also the quality of the cash flow, i.e., the recurring net cash flow. And here, what we are aiming at is, in fact, to have a cash flow that is improving, more solid, more resilient and actually less cyclical. So the expectation in '28 is that there will not be a contribution from working capital, which is still much smaller but still the case in '25. So it comes from the rest. It comes from the operating margin improvement by 100 basis points. It comes from investment clearly below 7%. It comes from restructuring normalization by '28, we will have completed the big wave of restructuring that we have to do that we are underway, EU-FORWARD on one side, Simplify on the other side. And you will have, of course, the reduction of the financial cost, the reduction of the debt that we are doing in the meantime is and the repatriation of cash is improving our financial cost, and we expect to be clearly below EUR 400 million by '28. And last but not least, is normalization of tax, and I believe that we can do better after '28 on the tax profile. The tax will be stable in value because the increase in operating margin is one thing, but the other side is the geography. Geographically speaking, we have countries in Europe, for instance, in which we are losing money. So to recover the situation in those ones is not, in fact, having the tax impact per se. So the focus is to have not only the 3.5% of net cash flow that we aim at for '28, but in fact, what we call the recurring net cash flow going up between '25 and '28. In '25 is actually at 3%. And we expect to be, as the graph is showing it, in fact, above the 3.5% in '28. So not only the value but also the quality is what we are aiming at, so that we have a situation in which the cash flow is more solid, more recurring and more resilient to whatever fluctuations that can happen in terms of volume or activity. Now what does it mean in terms of capital allocation policy? First of all, we aim for a solid financial structure, not only short term but midterm as a company. And this is the base on which we will do selective growth in the domains in which we believe it makes sense. The second is that we remain committed to long term in capital return to shareholders. There will be no dividend proposed on in '26 on the results of '25, but we have clearly the goal that at the end of the day, all the metrics and all the parties need to have the return. So the policy that we set ourselves is, in fact, to say dividend and share buybacks will take into account the group financial results, the growth financial position, including the leverage level. So as a bit of a conclusion for the overall financial framework, what will be FORVIA in '28? So FORVIA in '28, you see the numbers. sells EUR 21 billion to EUR 22 billion at constant ForEx. That includes the potential divestiture that we contemplate in -- we could contemplate in the value cluster. So in fact, it means an organic growth of around 2% for the company over the period. Operating margin above 7%, actually balance between the 2 clusters and with the distribution of profit I would say, more spread. Cash flow at 3.5%, but with a better quality and better recurring, lower financial cost, not counting on working capital contribution, annual leverage at 1.2% compared to the 1.7% that we have at the end of '25 and the 1.5% that we have -- that we expect at the end of '26. So in summary, a more solid, resilient company in full capacity to seize the opportunities that we presented this morning, in particular, in Electronics and in Seating while keeping the rigorous financial discipline that this industry requires. And on this note, I leave it back to Martin for conclusion.

Thank you, Olivier. So quick conclusion before we get into Q&A again. So IGNITE is a very clear and step-by-step path to success. We drive what matters now and unlock what's next. It has the 3 elements: best-in-class performance. Here, it is about disciplined profit generation, cash deleveraging and deleveraging of the company. So we reinforce the foundation, right? You heard about from Olivier about the quality that we put into our operations and beyond, that is going to drive that reinforced performance we need. Then second, we have business transformation. We do that with utmost discipline and focus. You heard about the value cluster and the growth cluster. And we are very disciplined in putting the businesses in there and capital allocations follow suit. So it is important that where we play, we lead. It's not about the sheer size, but it's about scaling in our successful activities. And then last not least, invigorating our culture. It is about accountability and empowerment. We want to do and make decisions at the right level of the organization at the point of business and use, and that will develop agility and the performance we need. So personally, I'm very confident that IGNITE is going to deliver sustainable growth and the financial results our investors wait for and with that, a good long-term value that we are going to generate for FORVIA. So thank you very much for your attention this morning. We now build the stage for Q&A.

We'll start from questions from the room for those joining remotely. [Operator Instructions]

Stephen Reitman from Bernstein. First of all, a question about China and about, I guess, working capital. Could you comment on what has been -- what the developments you've been observing in terms of payment terms in China? Have there been changes? Have the government regulations had a material impact in terms of shortening terms -- and is that having any positive impact as you're obviously increasing your exposure to the Chinese OEMs? And secondly, I guess a question about on Seating -- sorry, on Lighting. Obviously, we've seen it. You've moved it into the value category. To what extent does this reflect the SDV move the sense that the total value of those units you're selling has moved from modules -- complex modules to more components. Do you see any other part of the business that face that kind of pressure as well? And can you talk also you talked about maybe moving toward volume strategy on the Lighting side? Is that to compensate well to for this reduction in parts per value per part or so?

All right, Steve, let's get started then on China on the working capital. So we have not seen much of a change happening on the front, and at the same time, we are very consistent on how we handle our working capital between what's happening on the customer side and on the supplier side. So we don't get into the position of a bad middleman but we translate pretty much the terms that we get from customers to the suppliers. And then the second question on Lighting. Very good question. How is the value generated in Lighting products. You still see additional value that's coming from new products. So we have traditionally been strong in headlights and taillamps and lamps. You now see a complete new suite coming up of car body lighting solutions. And one of our showcase is the new BMW iX3. We have that beautiful face, right, certainly with the headlamps, but with many more lighting elements. So that is a trend that benefits our revenues. You're also right when you say, how is it modularizing, how is it getting to be more standardized. So let's go back to a headlamp. Yes, we have very strong light modules that are getting standardized and platforms so we can scale volume with that. That's another trend we face. And Peter taken over, that's something, and we want to go into the volume segments where that platforming becomes more and more important.

Yes. And beside platforming because you talked about SDV, yes, you're right, some functionality maybe will move from lighting electronics onto this centralized EE architecture, but that it moves directly on the modular systems where we -- with our zonal modules will play a role as well. So it's more a shift of value from here to there. .

It's Jose Asumendi. A few questions, please. Just back to Lighting, can you explain a bit better -- just go through the concept again of how to improve the margins within Lighting? Is it growth across some of the regions? Is it cost savings actions and how do you come to that growth maybe in China as well? Second, on cost savings for the group level, can you explain what are the key actions to drive margins higher? I mean cost savings was the biggest bucket in your profit bridge. Just give us some examples of that. And then three, Clarion, what are the levers also to improve the profitability in this division? And is this division also potentially for sale? Or is this a division that is performing in line with your expectations?

All right. Good questions. Jose, thank you. Let's go in the sequence that you posted them. And Peter, maybe you're going to comment on the opportunities that you see in Lighting in terms of cost improvements and was also an element of China coming in for Lighting.

Yes. I think there are different things we focus on. On the one side, in Lighting, for sure, we have a performance optimization program ongoing, you heard already about the Simplify program or our European focus program, which we call Eagle, which is about it's ongoing. So it's focusing on operational improvement, R&D improvement, efficiency improvement, all those classical things, classical improvement programs. . In addition, Martin already talked a little bit about that. We will work more on the design, working on platforms and that having as well the opportunity to step into the volume segment. And we want to realize growth in China. And China growth can only happen specifically with Chinese OEMs, if you work in China for China. That means local R&D, local operation, local sourcing, empowerment of the local organization and all of that in Chinese speed.

Then, Jose, I would come to your second question, how do you get to cost savings and better results, therefore. We talked about the 2 big initiatives EU-FORWARD, that's taking cost out. Same thing for Simplify where we are seeing significant potentials for fixed cost reduction. And that's also what Olivier had in his bridge to highlight how much more potential there is. I want to reiterate on the Simplify target. So we are shooting for EUR 110 million in cost reduction by 2028. We are going to see a first impact now in 2026. We want already make it to 40% of that savings potential. So put measures in place that allow for the first 40% to get into gear. And then I think it was also important Olivier, maybe I want to look a little bit deeper into operations and how do we drive performance, how do we drive productivity in that area?.

Yes. So the first one is to continue what I explained on our FORVIA Excellence System by dep, we have a very clear link between the compliance to our system and the profitability of our plants, which I think looks obvious because if you apply all the best practice, you deliver better. So we concentrate to put all our plants on the right corner,. The second one, automation, smart automation, boosting automation everywhere we can with a short payback. . We have also all the actions we do on our supply chain, mixing on one side, very cost effective, but also the maximum resilience we can deliver. We are working also actively on our transportation cost because when we reduce transportation cost, we gain on our costs, firstly, we gain on CO2 and also this is helping to drive a better reliability in our plants. So these are a major actions we have launched on the top of our digital transformation and AI that I explained before.

Okay. Jose, you had one more question on what are the levers on Clarion. So first of all, the results in 2025 already show that we are substantiating the performance to a much better space. And this has worked on 2 levels. So we have simplified also for Clarion in the organization. We figured out that for EUR 1.4 billion business, there was too much matrix happening. So we are taking that back. That helps. And then the other lever is really in the R&D space, where we have to create software platform that can serve various customers cannot be too individual in all these developments. And I mentioned earlier, we're also looking for partnerships in that field that we can reduce on various levels of software, our own efforts, that's going to drive profitability.

Christoph Laskawi, Deutsche Bank. I'd like to start with first question on disposals, further disposals or potential for that. And coming a bit back to what Thomas asked initially in the first Q&A. If we think about the signs that you outlined, it could fit, for example, Clarion that you just also highlighted can improve margins. What is your strategy for the disposals? Would it be this division? Could it be just smaller stuff? And if we think about Clarion is that already fully carved out? . I would think it is. And so that will make it easier to relatively quickly sell. And looking at LCS and other division that would fit the size, I think it's rather unlikely because of the ownership structure, if you could comment on that. Second question would be for Seating is obviously currently a trend ongoing to reshore production into the U.S. which probably puts U.S. competitors a little bit of an advantage relative to your industrial footprint right now? How do you cope with that? How you're competing with them both and India, again, are relatively outspoken to gain share currently? And then lastly, just on electronics, obviously, quite impressive growth targets. Could you comment a bit on the regions that are driving that? And is there any margin difference by region? So within Electronics, is there a mix effect mostly in the improvement? Or is it simply operating leverage on scale?

Thanks, Christoph, for highly strategic questions. Let's get started with the disposals. So right now, the full attention goes to the intended divestiture of Interiors. And think what got us to that point, there is a strategic consideration to really strengthen the portfolio, but there is also the need for the cash that we bring that down. So once we do that Interior, plus we continue on our good organic deleveraging, we have a little less of a pressure than before. So when you look now to that 2028 horizon and we reserve for EUR 1 billion of additional divestitures. It's not top priority right now. But across time, we will see what qualifies? What can be done? We are interested by us. So it's by far too early to speculate on one business over the other that could qualify for those divestitures.

So EUR 1 billion in sales, just to tam down any expectation.

Way to, EUR 1 billion in sales. Go then, let's go to Seating. You said, what's new in the U.S., right, with the push from the administration to do more locally and all competitors pushing into that market. Sébastien, certainly one for you to say how we're competing.

So I confirm that North America is really a strategic pillar for us, for our growth, especially in the U.S. of course, on our innovations, but as well as our industrial performance, which is really improving. We work specifically on automation in the U.S. to further reduce our cost. And I want to share with you one example of our success FORVIA Group announced the win of a major contract in North America, more than EUR 1 billion, with a European OEM and sitting as a big part of this win. So clearly, the U.S. remains a clear strategy for us and a priority.

Okay. And third question, Christoph was on electronics, and we have significant growth targets. Yes, they are global in nature. And when you think through some of the products that Peter explained, it's very important that we go global and scale. So remembering back the zonal modules where it all starts from a little chip from an ASIC that we developed, a lot of IP, a lot of know-how enables the upscaling into the full zonal computer. All this lifts from volume. And that's why we are targeting the global market with all these product lines. And Peter, I'm sure you have a couple of more forts on that as well?

Yes. At first, the growth will basically happening balanced worldwide. We have a specific focus on Asia, China, India, Japanese or Korean OEMs and on North America. Besides the scaling for sure that comes with the localization of manufacturing, which we are targeting for and you asked about margin distribution that will be balanced somehow across the regions in the sale. .

So Manuel Capone from Banco Itau. I wanted to ask you regarding the Latin America region. I think it has not been mentioned within the presentation this morning. And I was wondering if it's still a strategic hub for the group? And if yes, to what extent, please?

Yes. So in that region, we operate by about EUR 1 billion, and it's a very fine region for us, both in terms of development of the business. It's also a profitable business that we enjoy. So we are very present with all the various business groups. And in the best spirit of IGNITE culture, we empower that team very much to serve the local market with all its specificities, right, with that have a wave of inflation and so on. So a very capable team who drives that business. Here and there, we even developed specific technical solutions to serve the specific market needs. So we are definitely holding on to that. It's valuable.

Vanessa from Jefferies. And I was wondering if you could just talk about the commercial vehicle growth strategy you have and what have been the barriers to growing that in the past?

Yes. Good question. So first of all, barriers I would not have even seen. It was just not a really strong focus of the group. And now 2, 3 years ago, we started realizing that's really an opportunity. And we go business group by business group to develop that. So I would say it's even more established, Peter already on the HELLA side. Many want to talk to that a little bit, and I'll pick it up for.

Yes. In HELLA, it is under Lifecycle Solutions. It's a subbusiness group, where we are already strong in Lighting in some areas and where we develop further now in Electronics because sooner or later as well, commercial weeks will go in the direction of these new EE architectures, and that provides for us a new growth opportunity to step in.

And we heard from Sebastian earlier this morning, what that means specifically to Seating. And there's other business groups where we now prepare their respective product lines and an organizational setup to serve these customers. So that's a full swing.

And then I don't want to detract from the great opportunities you've presented today. But it's interesting, a lot of your peers are talking about the nonnormative opportunities like data centers and defense, et cetera. And maybe the only 1 who isn't -- why have you chosen to go that route?

Well, we are in Phase 1 of IGNITE, and that's all about focus and strength, and that's what we do these days. So we have a lot of opportunity both on the cost side, also in growing with our key activities. So that's where we want to focus. We are not ignoring those spaces, but we look at them really for adjacencies. So we are testing into fields like defense, where we say where does technology translate good in that new sector. And if it's adjacent enough, we consider it, but we are not going to go into a big investment that right now we cannot afford. That's where we stay. We focus and we strengthen who we are today. We get further on to lead and grow, right, and have the financial flexibility for that as well, then those fields are relevant for us, too.

And then lastly, you've talked about replicating the success you see in China with your efficiency and shorter development terms. We've heard this a lot for the last couple of years from all of your peers. And what are the barriers to doing that still? I mean, would your customers say, it's you guys and you guys would say it's customers.

I would say it's our customers and us who have to break through because all decades and decades and decades. We have developed a very solid way to do automotive business together. But it isn't all fragments also a very slow way of doing business together. And right now, Vanessa I really sense, a good motivation, right, a good pressure, particularly from the Chinese market that makes OEMs and us Tier 1 suppliers FORVIA get closer together to really tackle it. So this is a discussion today in the management boardrooms where we are on the highest levels, we say, how can we bring in ocean much faster in Europe and North America as well. And it's going to be a leadership act rate. We have to influence very positively our organizations from the top to get to that speed we need to be globally competitive.

Thomas Besson. I'd like to go back to my initial question. So can you explain what's going to drive the return to growth in '27? '26 is the third year of revenue decline versus production accelerated in '26. And can you explain how you can grow and maintain a limited CapEx at the same time and you don't plan any more cost saving plan after 2028, which I find a bit surprising, because usually, there's always a saving plan in this business. . Second topic on Seating. So you've explained that commercial vehicle was becoming possible. It was impossible before. Can you explain what has changed because before we were told it was a too small market. It was different types of seats. They were not in a feat in the trucks and these kind of things. So why don't you do seat for aircraft the technical, they are more valuable? It's also adjacent to some extent, maybe it's for the next phase of the plan. And can you explain if you have had any wins with Japanese and Korean OEMs because I haven't seen that you've talked about it and I haven't seen it. They tend to be quite integrated or they used to be integrated in Seating. And lastly, maybe more for Olivier. In '25, you still had 3 underperforming business. Interior that is going out, but it's still going to be in your accounts in '26, Clarion and Lighting. What was common between these 3 businesses? Is there any accident industrially in the U.S., is there any execution issue with any reason for selling Interior and keeping the other 2 underperforming businesses?

All right. That's a mouthful. That's free to have 3 questions, Thomas give the best to keep us all organized around that. So when you start on order intake, and how are we going to return to growth in 2027. That's exactly what's happening. We are going to benefit from the order intake of the last year that's going to push growth forward. And when you see what really holds us back end of last year, early into this year, it's predominantly that customer mix that we have seen in China. So okay, this is now booked in, and we look forward from there. In terms of CapEx limitations, how can we keep that in check in spite of the growth? Well, you see how low we are in 2025, and we announced that we will be returning to a certain degree, but keep it clearly below 7%. So I think that describes and quantifies very well the range we have to maneuver and how we are going to allow for that additional growth. Then you asked also how about future restructuring. We can't believe it's all open and all ended in 2028. What we translate into plan is that in 2025, we really had the peak and cost, now the cash is going to come after. And from here, we are tempering off. I would say, EUR 100 million of restructuring cost in a given year is probably the level we are going to sustain, but you know that we are coming out of times now with EUR 400 million a year. Good and Seating. What's different? What you -- why now commercial vehicles? Sebastian? So what's happening?

Well, it's possible now is because we have developed a complete new set of seats dedicated to this market. The technical requirements are different for us and we have developed new solutions, both in-house and with partnership and now we are able to address this. We have 1 already major contracts entering into production in 2027 is expanding as well our growth after 2026 because it's entering into production and already we are planning to grow now significantly. Our strength is that we are able to combine the new product with our and wellness solutions. We have developed for passenger cars. So that's why now we are going very fast in this market. We are not planning to expand where aircraft technical requirements are currently different volumes as well. So no plan for the time being in this field. Japanese and Korean OEMs. So yes, we are going. I did not mention it, but we won contracts with Korean OEMs, both in Korea and as well outside. And in Japan, with Japanese OEM, we are building a new plant that will enter into production this year.

Good and last at least, Thomas, you had a question on Clarion Lighting and. What are -- are there any patterns right, for performance that we want to improve. I would give free characteristics on Clarion, we talked about over structure and too high R&D costs. Lighting is different. I think, Peter, it's fair to say that we suffer from capacities we have built for a much stronger Europe market when it was still in the 20 million vehicle range, not at 15 million. So we got to get that out of the capacity. And on the Interior side, yes, you're all well aware, we did have operational struggles in North America in the last 2 years. And Olivier, you described very well how systematically, we have introduced FES to fix that, and you also mentioned a number in terms of margin improvement that we have seen. So there's not that common pattern but 3 cases where we have to act decisively.

Yes. Ross McDonald, at Citi. Three questions. Olivier, firstly, on cash return. Just be interested to push you a little bit more on dividends and buybacks. I think the consensus for '26 has a small dividend in there. I'd just be curious how you think about the KPIs for moving back towards cash returns, how do you think about the mix between dividends, buybacks when we get there? And then linked to that, if you do a dividend of EPS or if you consider thinking more about holistically the cash generation and using any surplus cash for buybacks and dividends? Second one on electronics linked to Christoph's question maybe in a different way. Obviously, it is a growing part of the order bank. Are there any specific platforms within there any customers? You mentioned it's diversified by region. But for that growth to crystallize, are there any specific OEM SDV platforms that we should really focus on? Final question is a big one, specifically on AI, you've talked a lot about AI benefits. I think it's fairly obvious that suppliers can get the R&D down and that's a huge opportunity. How do you think about holding on to those savings? Because obviously, AI can be deflationary. So how do you make sure you retain those AI P&L savings? And then linked to that, what should we think about EU R&D head count in the group, steady state because a lot of the R&D expense is, of course, labor expense? And final point on this, you talked about restructuring costs normalizing in 2028. If these AI tools are as good as we're led to believe, how realistic is that? And can you maybe remind us what is a normal level of cash out restructuring for a steady state.

All right. Olivier, you want to go ahead on the dividends and the general cash returns.

So I think for the time being, the priority is very clear. It's getting a restoration of the balance sheet and to have the right financial structure. So I think the decision -- the recommendation to be clear, the recommendation of the management and then of the discussing the Board and recommended by the Board to shareholders for '25 results. I think it's fairly obvious. We need to have our balance sheet fully restored, and this is not yet the case. We are on a good trajectory, but we need to get to 1.5, and we need to have the closing of Interior. Now going afterwards, I would say it's a question of having all the metrics being back in place. And it will be an individual decision with the Board every year, taking into account not only net income and EPS, but also the actual financial situation. And if I made the context externally. So I think it's a cautious -- it's a cautious policy. And I think for the time being, this is what we should stay on. Now related to dividend and share buyback. If and when we are at this situation, probably we will look at both elements we know perfectly that the operation went translated in a fair amount of dilution in back in June '22. So we have this consideration as well. So that's what is the most effective way for having a return to shareholders, and it can be either of. Good Second question was about electronics. Are there any specific vehicle platforms customers we target. Peter, where are we?

Yes. As I mentioned in my presentation, we have somehow the expectations that 60% of the vehicles produced in 2030 will be on these new platforms. We actually announced that we have EUR 1.5 billion already sales in our booked. Those bookings are coming mainly from European OEMs. We are now talking with North American and Asian OEMs about the same. So in the future that will be distributed. And due to the fact that these new EE architectures will be so much more efficient and needed for software-defined vehicles. It's not a specific platform any longer. All OEMs are moving step by step now in this direction. .

Good. And then Ross, third question around AI. How do we generate these savings and important to you, how do we hold on to these things, right? And then probably there is an attachment of the fourth question as well. What does that mean to R&D forces maybe give the AI please.

First of all, we -- as I explained, we focused a lot on digital first, data, real-time and we know exactly what to do with our data and how to boost performance through that in our plants or in our development by the return of data as an experience. What we have launched is a very pragmatic AI scaling. And we and all 4 are in what we call the AI transformation studio. So we have a monthly review where our team members are presenting their projects, and we finance them then month after month. And I think it's clearly answering your question, that means we first scale the project onshore the payback, having the KPI to monitor the payback and then we launch the full investment for the project. So it's why we start by 30 agents, which is our first starting point. But with the studio, we really want to be systematic and dramatic as our strategy to really leverage our end-to-end processes and step-by-step generative AI, but on a very pragmatic way.

So to your last point, what does that mean now in terms of also restructuring and possibly continued restructuring. You remember Project Simplify is something where we work into our overhead structures into the SG&A adjustments as well. And a good part of those savings will rely, in fact, on artificial intelligence. So we go through our process end to end, take complexity out of the processes and then bring AI to work off that. So when we talk about the savings of Simplify, but also the restructuring office -- efforts that we have quantified as EUR 150 million roundabout. That's already part of AI effects that you can see in these numbers as well.

And maybe just to make sure that the understanding of -- it does not mean no restructuring. It's -- the envelope that we are considering is EUR 100 million, EUR 130 million cash out of a restructuring because new technologies, new processes, the mobility of the activity. So it's not when we -- I mentioned normalizing is normalizing compared to the big wave we have done, but it's not assuming that there will be nothing to do in '28. .

Is there any question in the room before we move to the chart? Yes. One last question.

Michael Foundoukidis, ODDO. Two last questions on my side. First, we talked a lot about Chinese OEMs, but what about suppliers. We see them more and more notably in electronics, but not only in Lighting, for example, and not only in China, but elsewhere and in Europe. What's your take on that? What's their behavior in terms of commercial policies, this kind of thing? That's the first question. Second one, still on electronic and following up previous ones. What's your view on where OEMs -- legacy OEMs stand on -- do you see them as more stabilized in terms of specifications, meaning that the risk of further delays is more limited than before? And how do you assess that? And what would be the possible impact on your action in this business?

Okay. Let's start with the Chinese market and competitors that we have, certainly in the Tier 1 space has been part of the game for the last couple of years across the range of products. And for us, it means we have to play strong, which we do. It starts, first of all, with our local-for-local or the Empower Chinese team where from innovation over R&D to manufacturing, supply chain, sourcing, everything is deeply localized. And that way, we are competitive. What always keeps setting us apart is that extra piece of innovation and innovation speed. So that's how we deal with that part of the competition. When I started in March last year, we were in China together -- and I challenged our Chinese team, I said, hey, we'll be back end of the year. I want you to innovate locally. I want to integrate to the needs of the market here. And then in November, we went back as the Management Board as the Executive Committee, now we could look at 30 brand-new processes and products that got innovated there. And the speed from that innovation to really the car, you saw that with the example of the mechanical massage, right? That's quick. So we got to feed our engine over there really continuously through innovations. Then on the electronics side, where do the conventional OEMs stand still on the way and they are on the way. So with what Peter described in terms of the more centralized architectures and having zonal architectures now that's becoming stronger and stronger with quite a few of the Western established OEMs. And I believe that transition into new electronics architectures and software structures is really mandatory and a recipe for finally success in that direction. Playing software-defined vehicle and an old electronics and electrical architecture is just not working. So that's why we are now playing on that trend, so heart of zonal computers because it's taken off.

And you're right, some OEMs in the Western world struggled for some period of time a little bit with those new architectures, but that is stabilizing now. And I think we can support them with our know-how in the areas I mentioned. And imagine what that means for us as a company, I mean, I talked about this change of value add. If the value add is concentrated on domain and zonal modules and we are going into the zonal modules with our one-stop shop solution. that is providing another good opportunity when all the OEMs now step by step go in this direction.

Then we'll go to the questions in the chat. The first question is coming from -- thank you for your time in the presentation. Regarding FORVIA Interior sale, do we expect any risk for the group in terms of operations following the disposal of this business regarding plans, tech or IT. Second question is coming from Karl Galen from APG. In view of deleveraging having priority, can we rule out FORVIA buying both minority shareholders in her before 2029? And last question still from ABG. With the expansion of possibilities in seating, for instance, 0 gravity. Do you expect to capture additional margins from passive safety systems, which have high margins moving into the seats?

All right. Very strong questions. So first of all, Interior risk no, let's say, risk from the intended interiors divestiture, that's the right question to ask. Those risks are limited. So as part of our choice, why do we divest from interiors, one consideration is it's a pretty independent business. So OEM source Interiors business separate from seating and so on. So there is no interaction between these businesses, first of all. And then when it comes to really operational carve-out, we have dedicated plants for our interior business. So there is only a very few minor 2 or 3 plants where Interiors would share space with other business groups. So the carve-out can be pretty clean in that regard. Obviously, once we get to that point, we'll have a dedicated carve-out and transition team that takes care and is going to mitigate any kind of risk that could come up. Then the second question regarding HELLA. And I think the question behind us is we are intentional about purchasing the remaining HELLA shares from minority investors. And this remains not to be one of our priorities. So as you heard us say before, we keep working and that set up that we have -- we have found very good and safe processes to drive strategy, to drive synergies. You see the new level, we have reached EUR 400 million in synergies. So that is not one of priorities. We will focus on the other elements where we strengthen our portfolio, as discussed through IGNITE today. And then the last one. Sébastien, our passive safety device is going to enter the seating space.

So indeed, we can see more and more content in a setting, especially in Asia and in China, in particular, whether it's on safety or wellness and comfort. So you mentioned 0 gravity, yes, it's a fact. We have an innovation, as I mentioned earlier, the S60 where you can incline your seat while being in a safe condition, and it is pretty new. And this additional content is generating for us additional revenue and therefore, additional margin. So I can.

One addition, you heard me talk about partnership in various areas in that passive safety, seating integration, we are partnering with Auderlif. So we have a very strong firm by our site to again push and drive the trend there.

Thank you, everyone, in the room and off-line. This is all the time we have for today. The floor is back to you, Martin.

Okay. That brings us to a final statement on time, that's really well appreciated. So maybe we can have the respective background here as well for a little summary. So I think there's 3 key takeaways. We got you through the IGNITE story, and we spent quite some time and repetition, so I won't do that. But the 3 statements that I want you to leave with from that conference here is FORVIA performance is improving in a very strict and strong manner. And 2025 was the first year to prove that. Second, in terms of portfolio, we are focusing on the most competitive assets where we have the strongest right to win, and that's what we want to scale, right? And the third point, IGNITE that together, there is a clear path to enter a growth trajectory on sound financial footing. That's important, too. So those are my 3 key takeaways for you for that day. And I want to thank all of you for being here. And I truly enjoyed our very active dialogue here. So your questions were both financially oriented, also very much strategy-oriented. And I hope we can drive that business forward together in that good sense. And then a big thank you to FORVIA team, to the FORVIA team as a whole for what was the -- what was a powerful and effective year 2025, and then to all the thinkers and helpers, who made that day possible today. It was a great effort, but was also utmost important for us to convey where we want to drive for FORVIA to. So thanks to not only the speakers, everybody behind the curtain as well, you made it possible. With this, I want to invite everyone here in the room for lunch. You know the area by now. And thank everyone on the phone and on the screen as well. Thank you very much. See you for our next event.