Forvia SE ($FRVIA)

Good morning. This is the conference operator. Welcome, and thank you for joining the Forvia 2026 Q1 Sales Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Martin Fischer, Chief Executive Officer of Forvia. Please go ahead, sir.

Yes. Thank you very much, and good morning, ladies and gentlemen. Thank you for joining us today for our Q1 2026 sales call, which I am presenting, as usual, together with our CFO, Olivier Durand. I'll start by sharing our first quarter highlights, and then Olivier will walk you through the details of Q1 sales. In the end, I'll wrap up with the outlook for the full year 2026. So let's get started looking at our 3 strategic priorities. We started executing on our IGNITE program that we presented at CMD and I am pleased to report progress on all 3 priorities that support the plan. So let's start off with performance. In the current situation, our business portfolio proves to be really resilient because we are in a context of declining market volumes across all regions, and we experienced unfavorable customer mix. You'll be seeing from Olivier's presentations how our sales hold up. Also, we continue to manage our business with discipline in terms of fixed cost reduction and offsetting our cost inflation. Second pillar, transformation. We make further progress when it comes to the interior divestitures, which we expect to materialize in the near future. And also, we expect the metrics of the deal to be in line with what we presented at CMD. You heard about the net debt reduction of EUR 1 billion and a gross debt effect expected to be EUR 1.4 billion. The second one that has been very important over the last months is the attention of the Hella leadership team to the Lighting turnaround, both in terms of top and bottom line, and I will explain more details in just a moment. Last but not least, invigorating our culture also here, good progress. Our project Simplify is on track. The processes are being streamlined and waste is being taken out. And here, our finance team around Olivier set a strong example by simplifying our reporting week-over-week, month-over-month and by taking unnecessary loops out of our approval processes. Along the same lines, we have also eliminated layers out of our organization, and we optimized the span of control of our leaders. Last but not least, we also push our new leadership model, Guide, Empower, Recognize. The new management principles and the behaviors that go with it are now being out by leaders that are getting into trainers' roles. So that turns out to be very effective in terms of driving that culture throughout the entire organization. As announced at CMD, we target geographic and customer mix expansion to drive the scale of our strong businesses. And here are some important wins that I want to report out from the first quarter. Looking at India. Our objective remains to double the sales by 2030 from the EUR 0.45 billion that we had in 2025. And the first very good award to mention in Seating. Remember, we have already been present in selling and building mechanisms in India. And now we have secured the major -- the first major complete seat program with an international OEM in the Chennai region. Also in the Clean Mobility business group, we can report 2 exhaust system wins. One is for a Korean OEM and the second 1 is for Mahindra in India. And the latter one is particularly positive because it's in the commercial vehicle segment. So we have basically a double diversification once into India and again into the commercial vehicle segment as well. Looking into China, we keep diversifying our customer base with significant orders from 6 major Chinese OEMs and I want to give you a couple of examples. So we secured lighting business with Geely, Seating business with Changan and various businesses in Chery, and Chery is going to take us both for their Chinese operations and their new operations in Spain. In fact, we just signed another strategic cooperation agreement with Chery that is now expanding the scope of our collaboration also to the Hella businesses of electronics and life cycle solutions. Third column here, let's focus on the product side. We scored with interior monitoring systems, which we explained to be an important element of our in-cabin electronics and therefore, belongs to our 3 growth drivers in Electronics. So here, we secured 2 contracts, both for a major OEM in Europe and another 1 in the United States. So I can state IGNITE is on the move and the growth drivers that we presented at the CMD started to materialize in the quarter 1 order intake. Let's have a look at the transformation program in Lighting. Hella Forvia is and remains the undisputed tech leader in the complete product range. However, the organic sales declined by around 7% in Q1 2026, extending the trend that was observed since H2 2024. And this development has obviously implications on profitability as well. The transformation program that we started is now under implementation with the new management. You got to know Peter Laier, the new Hella CEO during CMD and Juan Mollá joined as the new management board member in charge of Lighting since March 1. He comes in with a broad experience in automotive lighting and put that to work right away. The program that he is pursuing is built on 2 pillars. We want to drive top-line growth and that is enabled by streamlining our cost base. So first of all, we can leverage our premium tech position. And then we reposition the business to address the volume segment and to further diversify the client base. All this is, as I said, strongly enabled through a performance plan that optimizes both the R&D costs and the plant performance. We had -- in Q1 already, again, we reported out also for Q4 last year. We had, again, key awards for Headlamp packages. And these are reflective of mass market models, both in the United States and in Europe as well as for Geely. So we can confirm the effectiveness of the approach already through these order intakes. We will be seeing a progressive recovery across the business and beginning with H2 2026, we'll also see that in the bottom line. Today is, in fact, the first time that we structure our actual numbers into growth and value clusters. And I just want to briefly remind you, what we have done, we structured the portfolio into growth and value divisions. So on the growth side, we have Electronics and Seating. Remember, those are well growing market segments, and we have strong positions with a good right to win. So for Electronics and Seating, the priorities are to lead through technology, intensify the growth through diversifying the customer base and work with partners to also push growth forward. So on that side, we are ready to invest in a disciplined manner. And then on the other hand, there's a good complement in the value cluster, where we collect Clean Mobility, Life Cycle Solutions, Lighting and Clarion, and the focus clearly goes towards performance, cash and value generation. So Clean Mobility, Life Cycle Solutions remain to stand for an outstanding cash quality. And with Lighting and Clarion, we are in turnarounds with subsequent growth opportunities. So again, this segmentation gives us clarity and focus for our future capital allocation and therefore, also for an optimized value creation. So with this structure in mind, I would like to hand over to Olivier for the Q1 sales presentation.

Thank you, Martin, and good morning to everyone. In the next few minutes, I will show you the main Q1 performance takeaways. But let me start by a reminder that all the numbers that we are showing are under the application of the IFRS 5 accounting standard, which is requiring, in fact, the reclassification of interior as discontinued activity given the planned divestiture that we are into. So consequently, the Q1 sales that we are showing, whether it is for '25 retrospectively or '26, are presented without interiors. Moving to the numbers themselves. We report first quarter sales of EUR 5.135 billion. This is fully in line with our full year guidance of EUR 20 billion to EUR 21 billion at constant exchange rates and is confirming a solid start of the year. The Q1 numbers include a significant ForEx exchange headwind of 4.3%, which is primarily driven by the depreciation of the U.S. dollar, the renminbi and the yen compared to Q1 '25. Now we expect, given the evolution of exchange rates that those currency effects will ease significantly in the second quarter. And let me remind you that, in fact, our business operates basically locally. We buy and sell basically in the same currencies. So therefore, changes in currencies have very limited impact on margin. Now on an organic basis, sales have been lowered by 2.2%, which compares favorably to the underlying automotive market volume, which has been estimated to be down by 3.4% with the major regions impacting contraction. So in short, we have achieved an outperformance of 120 basis points in the first quarter. Now looking at the performance by region. Forvia delivered growth and outperformance across all geographies with the exception of China. In Europe, our growth was primarily driven by Electronics, Clarion and Clean Mobility, reflecting both solid commercial momentum and a favorable product mix. In North America, we also recorded strong dynamics, particularly in Electronics and Clean Mobility given the evolution in terms of electrification. Asia presents a more contrasted picture. On the one hand, in China, we recorded an underperformance of 14 points versus market volume, primarily driven by our customer mix with the 30% decline of BYD production. BYD volumes are expected to stabilize from the second quarter. And we have already taken the necessary measures to adapt our cost base and protect our performance in the country, and we continue the diversification of our presence in China. On the other hand, we continue to expand in the rest of these big regions with an increase of 11 points year-on-year, supported by a very solid quarter in Electronics and Clarion and to a lesser extent, in Seating. As you know, we have big ambition in the region, in particular with the development of India. Now I will move, in fact, to the performance by businesses starting with the growth cluster. As Martin mentioned earlier, the group strategy is now built around 2 clusters with a different capital allocation accordingly, value and growth. We have updated, as a consequence, our presentation of sales and you will see in the final sales in the semiannual and annual results, also the totality of the presentation adjusted for this. Hella Electronics and Clarion are no longer reported as a single segment, given the different approach taken for the different parts of the business. The Hella Electronics business has been allocated to the growth cluster and named Electronics; Clarion has been allocated to the value cluster and will be shown in the next page. So now on the growth cluster, as throughout '25, Electronics remain a key growth driver for the group in Q1, delivering 8.2% organic growth, i.e., more than 10% outperformance versus the market, well balanced across Europe, North America and Asia. Performance was driven by radar sensors, energy management components and low voltage management systems. Looking at Seatings. The organic sales decline of 11%, which was expected, was essentially driven by the unfavorable customer mix in China that I mentioned earlier. We expect a gradual improvement over the year. In all, the organic evolution of this cluster, which stood at 5.8% negative in Q1, will also improve in the next quarter given the evolution in Seating and the continuation of the growth in Electronics. Moving on to Value cluster. Sales increased by 2.1% in the quarter on an organic basis, which is a good performance, clearly compared to market volume, which I remind you, were lower in Q1. Our 2 strong cash contributors, Clean Mobility and Life Cycle Solutions both delivered a solid start of the year. Clean Mobility continued to benefit from renewed opportunities in the ICE segment in North America as well as the ongoing ramp-up of a business takeover that we did last year in Europe, which annualized in the second quarter. Life Cycle Solutions delivered strong growth driven by solid performance in specialty original equipment markets, notably in trucks, buses and agriculture. Activity was also supported by the expansion of its spare parts offering to the thermal management business. Looking at the 2 other activities, we have a mixed picture. Lighting recorded a sales decline of 7.3% organically in Q1 as the business continues to reposition its product offering and strengthen its competitiveness to return to growth as highlighted by Martin earlier on. Conversely, Clarion recorded a major double-digit growth across all regions, primarily driven by Japanese OEMs. Now let me go a bit further on the progress of our interior divestiture. As Martin alluded to, discussion with several buyers for the sale of our interior business have kept progressing with terms fully in line with what we shared and committed at the CMD. We confirm an expected net debt reduction of at least EUR 1 billion. And given the cash position of certain subsidiary within this business group, and the simplification from the cash management that this operation will entail, we expect the gross debt reduction actually to exceed EUR 1.4 billion. And this is the relevant metric when we consider the reduction in financial costs because it will allow to eliminate, in fact, gross debt at this level. On a run rate basis, we expect the transaction to allow a reduction of EUR 50 million to EUR 70 million in financial expenses on an annual basis, i.e., starting from next year. Combined with the expected organic cash flow generation in '26, we expect the net debt reduction to get to a situation of EUR 4.5 billion at year-end, i.e., a reduction year-on-year of EUR 1.5 billion. This will support the restoration of the Forvia financial structure with a leverage ratio at 1.5x at the end of the year i.e., a division of the leverage by 2 compared to the time of the acquisition and the same in terms of net debt evolution. And on this note, I turn back to Martin.

Thank you, Olivier. So let's look forward into 2026. I mean in the context of Middle East crisis, it is clear that we face uncertainties and uncertainties on volumes as well. So it is difficult to fully assess the impact for the full year. At this point in time, it is positive that the customer call-offs are stable. We saw the recent downgrade from S&P where they have taken global automotive production down to 700 -- 91.4 million. That's a delta of 750,000 vehicles in the year and the declines are expected across all key production regions: Europe, North America and China. It is important in spite of this expected softening, we confirm our 2026 sales guidance. And we continue to carefully monitor the development and are fully prepared with mitigation strategies for various scenarios. What really matters to me is that we have all measures in place to also offset cost inflation. First of all, we have limited direct exposure to inflationary pressures. For example, our energy costs are at 1% of sales. That's primarily on power on electricity and we are hedged at more than 70% for the year 2026. Raw material price increases are contained with contractual indexation mechanisms and as in all the other crises and inflationary situations of the past years, we have the objective to fully mitigate cost increases through, on the one hand, supply chain optimizations and then, on the other hand, through pass-through of any remaining cost effects to our customers. In any case, we proactively strengthen our cost position. So when you look at the key programs, EU Forward and Simplify, both of them are on track and we expect incremental savings of EUR 110 million in 2026. Also, we cut additional indirect costs and maximize our cost flexing measures. That's important to be prepared for possible volume decline. And last but not least, once more, I would like to also refer to our Lighting turnaround plan. So when we take these developments in account, I'm very confident in confirming our 2026 guidance. Q1 has been in line with our expectations, and we have strongly mobilized our organization to mitigate the effects in the current environment. So therefore, we remain to look at sales of EUR 20 billion to EUR 21 billion at constant exchange rates. Our operating margin is going to be between 6% and 6.5% for the full year. We expect net cash flow of at least 3.0%. And as Olivier explained, the leverage ratio will land at 1.5x before and after a possible divestiture of interior. So thank you very much. And now we are happy to take your questions.

[Operator Instructions] The first question comes from Christoph Laskawi of Deutsche Bank.

The first one is just a clarification question on your comments on interior. So I assume you don't want to be more precise what the near future means assuming it's the next couple of months. You are expecting the cash in for the transaction also to happen in '26, right? If you just could confirm that. And then the second question would be just on Seating. Obviously, that led to the Growth cluster not growing in Q1. And you already indicated that the next quarters will improve. Could you be more precise in a sense that when do you expect that to turn back or return to organic growth. Obviously, the comp base gets far easier in the quarters ahead. But are there any like milestones, SOPs or so that would drive it up to organic growth and potentially also stronger outperformance that you can flag already today?

Christoph, thanks for the 2 questions. So let me start with interiors. You see we obviously take the time needed to conclude those discussions in our best interest. And yes, near term, we are not going to qualify any further, but I dare to say it's not months and months anymore. And when it comes to the cash intake, yes, we still expect that to go into the numbers of 2026. So the debt reductions that Olivier showed are expected to happen within this fiscal year framework 2026. Then when it comes to the Seating growth, yes, the current weakness is due to predominantly the customer mix in China. BYD sales are down by about 30% and this being our biggest customer in China, has an impact, and that's why we don't see growth right now in Seating. Your question targets in the right direction, how is that going to change going forward? So we have secured in the meantime, quite a few new orders for Seating and a number of them is going to launch already in H2 this year. And a number of them is also with BYD because with BYD through our strong partnership, we always have agreed on a share of their book of business and seats. So we are compensating what is missing. And here's really interesting launches coming because you know that BYD is bringing up new battery technology. And we are going to be on models in H2 like the DENZA D9, the Song Plus that comes with the new battery technology for ultra-long range and ultrafast charging. So this will help us to bring Seating back to growth.

[Operator Instructions] Gentlemen, at this time, there are no questions on the conference call.

Good. If no other questions, then I would like to thank you -- sorry, we have a question on the chat too, then we go for that one.

Let me read. It's coming from Ross McDonald, and there are 3 questions. The first question, the organic decline in the Growth cluster of minus 5.8% in Q1 '26 was well flagged on BYD headwinds in Seating. But how should we think about the organic growth for this cluster for the full year? Is there a reported revenue number we should think about as a target for '26 baked into the '26 guidance? Question 2, given the economic uncertainty and given your guidance assumes no further deterioration in the macroeconomic environment, are you able to give some sensitivity to the full year guidance if we see further LVP reduction? What will it take on the volume side to take us to the low end of the '26 guidance corridor and at what level of volumes will take us below the current guidance corridor on sales and margin. The third question, can you comment on the recent business wins with Chery and Geely. Are these skewed toward your growth segment in Electronics and Seating. How should we think about the overall magnitude of these business wins from a euro value order bank perspective?

Good. Ross, I'm not sure you're listening, good morning in any case. And I would start then from the business side and the order intakes in China. So you heard me talk about new Chery businesses. And yes, that is part of the new collaboration agreement we have with Chery that we are now picking up Electronics sales there. Then we talked about new businesses also in the Seating area, Again, they are not only with BYD, but particularly important to mention that we have business coming up here with Changan as well. So yes, we are picking businesses into our Growth cluster. How to quantify them? Every single deal in these businesses, you can consider a couple of hundred million in lifetime sales, and then this has to be accommodated obviously. Maybe, Olivier, you take the question on the sales guidance and the sensitivity around that.

Happy to. So first off, I would like to say that we are currently, in fact, in the favorable side of our guidance from a revenue standpoint as we speak for the year. So let's say that it gives a certain margin of maneuver on the revenue side in the guidance. The calculation is then fairly easy to do in terms of sensitivity from a revenue standpoint versus evolution of the market. Let me complement that by the fact that in Q1, we have not seen particularly any, in fact, headwinds on the revenue standpoint. Actually, the month of March was, in fact, even a bit better than what we anticipated before. And that EDI so far in Q2 are not showing any major evolution. But having said that, we are applying to this volatility, uncertainty, in fact, what we did in previous crisis, and I would like in particular to highlight what we did in the case of the tariffs. Two topics were existing, and they are the same here. One is inflation effect because tariff is inflation. And the second was the risk of volume decline. On the inflation, we did that last time, we are doing the same. We are doing the maximum on our side in terms of what we can do to mitigate, in fact, those elements. We have done hedging on electricity. We are looking at the options in terms of the raw material, but we complement that with pass-through in fact, of this inflation to customers. And they are, in fact, formalized for a lot of it, and it will be completed with the necessary negotiation. You remember that we recovered in tariffs more than 80%. I think it's basically the type of goal that we have for this evolution as well. Related to volume uncertainty and risk of volume drop, we have put in place what is necessary in terms of discretionary spending, cost base and flexing the cost to face that if and when it's materialized. Now we -- so we confirm the guidance, and we confirm also that given where we are in terms of our revenues, we have a certain flexibility in case the -- actually, the volume of production is getting lower.

Thank you, Olivier. And then last question was on how are we going to return to Growth in the Growth cluster. And indeed, we are very confident so Growth in the Growth cluster over time. And that's where we already did 8% growth in that quarter in Electronics in a declining market. And in Seating, which is penalized by the specific situation in China is expected to restore growth gradually as well in the first step with these new launches I quoted.

Excuse me, Mr. Fischer, would you like to take a question from the conference call?

Yes, absolutely.

We do have Stephen Reitman of Bernstein.

Yes. Two questions, please, about China in China and also the Chinese manufacturers progress in Europe. First of all, in China, could you comment again on what you're seeing in terms of payment terms from some of the key customers, in particular, BYD? And if the pressure on them to make more reasonable payment terms, are actually being -- there's some visibility on that? And secondly, on your exposure to the Chinese with their plans in Europe as well. Obviously, you've talked in past about BYD. Obviously, we've seen in March, the Chinese getting to about a 9.4% share of the overall market, about almost 150,000 sales apparently according to the data from Dataforce. So I just really want to see what's -- how -- how you think about your exposure to as the Chinese expand in Europe as well as their local operations.

Stephen, very good questions around China here. So we don't see any change on the payment terms with our Chinese customers on an average. And we remain in the same position that we mirror those terms also with our supply base. So now no change in any of our working capital effects, therefore. And when it comes to the second question around exposure to the Chinese customers selling in Europe. So first of all, we see that a good part of these volumes still arrive from China in the form of vehicles. And we are positioned with, as you know, more than 20% of our sales -- global sales in China and a good portion of that goes with the Chinese OEMs. So when they export vehicles, we benefit from that. And then the second trend has certainly started with the Chinese OEMs starting shops in Europe. And here, we are clearly partnering with BYD in Hungary, with Leapmotor and Chery in Spain. So we will be localizing our production then to also give them local content here in Europe.

And from a cost perspective, I mean, how easy is it to approach the levels that they require. Obviously, what they're used to in China and obviously, how they can be supplied from a European cost base even in a low-cost location like Hungary or another from other Central or East European plants?

Yes. No, good follow-up. And I mean both OEMs and suppliers face different cost bases in China and in Europe. When we are deeply localized in China, that is at a level that we cannot attain, not for the vehicle, not for components in Europe. And in the whole local content discussion that we also have politically you could see numbers that were also published through our trade associations. But depending on the product, on the commodity, there can be cost differences between 15% and 30%, when you go deeply localized China versus deeply localized Europe.

In fact, Martin, there are quite a few questions on the chat. There is one question from Tom Gibney. with respect to raw material cost, what proportion of your raw material cost is represented by plastics and aluminum respectively? And second part of the question, what proportion of plastics and aluminum cost are covered by contractual pass-through and what is the average delay of this passthrough clauses? And I take the question, I will take the answer. So, we are not buying aluminum. But we are -- of course, we are buying some plastics, I think to the tune of EUR 1.4 billion, and they are largely covered by contractual passthrough. Those passthrough clauses have -- in fact, they are based on smoothing average. So there is a bit of a delay in the recovery when you have an increase of the cost and vice versa in the opposite direction. The goal is clearly to ensure that we have the passthrough in full and happening during the year. It means it is the type of seasonality participating also in the type of seasonality between H1 and H2 EBIT that you see traditionally within the company.

Yes. And Olivier, I want to reiterate that this is a well-oiled machine in the meantime after the various waves of inflation on semiconductors general inflation. So we have our systems in place to determine how are we being influenced -- impacted by these increases. We have dual sourcing here and there. So we can mitigate as much as possible between suppliers. Then we have the automatic price escalators with the customers. And then the last step is if this is not all protecting us individual negotiations on the remaining effects with our customers. So I trust that mechanism. We showed it very well last year also in the context of tariffs, and that's why we can reconfirm our guidance also in light of these negative factors.

Two questions from José Asumendi. First question, can you talk about growth opportunities with Chinese OEMs in Europe. And the second question, in light of the headwinds we are seeing in H1, are you planning to increase the cost savings speed in Europe? Can you comment on the restructuring costs, the restructuring work done in the Lighting business specifically?

José, good questions. So let's talk about growth opportunities in Europe of the Chinese OEMs. I mentioned a couple of them already. And I want to even extend the answer. It's not only growth opportunities with the Chinese OEMs in Europe, but also in South Africa and South America, you saw quite a few of the announcements where the Chinese OEMs are going to tap into markets by taking over existing production facilities from more traditional OEMs in these regions. You can fairly assume that we are on all these business opportunities around the globe with the Chinese OEMs because we see the strong expansion. We have that strong foothold in China. So it's a natural to benefit from their expansion globally. And on the cost savings streams, yes, we are accelerating. So we have started a new resilience program in light of the Middle East conflict where all businesses, all functions first of all, generated additional savings ideas, and we put them in action before we even see the actual volume decline to really drive our results cautiously, carefully on the safe side for what might occur in H2. And for the lighting program, yes, it's a very comprehensive restructuring plan that we run. And it has to do both with taking costs out of operations. So Lighting is a strong contributor to the EU Forward Program in that sense, but it has also to do with taking costs out of product. So we work into the design of the products and I mentioned that we are successfully now for 3 quarters of the year, taking volume orders in because we can project the future product costs and also the future cost base in operations into these offers and into these new orders.

Another question on the chat from Stephen Benhamou. One question, please. Debt maturity, can you please give us an update on your refinancing plan for '27 as you have EUR 1.9 billion of debt maturing next year? How do you manage the refinancing risk given higher interest rates? So on this question, so the -- you have 2 parts. You have a bond in Hella, which is maturing January '27. And we expect to refinance a part of it, and we will do that in due time. No particular rush on this one, especially given the current interest rates. In relation, let's say, more to the Forvia debt. Clearly speaking, the proceeds from the divestiture of interior will be about reimbursing quite a bit of this one. We will work on depending on the evolution of interest rates and so on, which part would be on '27 and which part will be on '28 and on the remaining part, we will look at refinancing options. Don't -- let's not forget that on top of the divestiture, we have cash flow generation in the company plus our actions in terms of cash repatriation and optimization, which allows us, in fact, to have capacity to re-onboard gross debt beyond the pure cash flow generation. So limited refinancing activity, I would say, this year. There is another question from Floris Dykstra. Are you able to comment on the latest made-in-Europe rules and how they may impact your business? There was news that European OEMs may be partnering with Chinese EV producers in European plants. Will this improve volume positively regards for us?

Good. Let's comment first, Floris, on your question with regard to local content rules. So the proposal of the European Commission is out. And yes, it's direct a significant share of local content into vehicles here. Europe is our home turf. So that's obviously strengthening us and also backing us up because it will secure production of components for European vehicles in Europe. So we can trust that volumes do not collapse because the world has decided to benefit from other countries, cost structures like China. We discussed the cost difference. So it's a positive element of our future because it secures the employment of all our associates here in Europe, much better than without that regulation. And the second part of the question, Olivier, went in the direction.

So the question is about European OEMs partnering with Chinese EV producer in European plants. I think the question is, will this improve volume for us?

Yes. No, it's a trend that we obviously can benefit from both through the good relationship with our established customers here in Europe. And one example being Stellantis and Leapmotor where, yes, we do traditionally, a lot of business with Stellantis, and we have also grown nicely in China with Leapmotor, and we grow with Leapmotor coming to Europe as well. So that is a trend that can be seen as an opportunity since the market mix changes from more of the traditional OEMs to Chinese OEMs as well. We will make benefits and use from them entering facilities or partnerships with our European customers.

I don't see any outstanding question on the chat. So I don't know if there are outstanding questions on the call.

No, sir, I confirm that we have no questions registered at this time.

Good. Then I want to thank all participants this morning with a very quick summary. You saw we took a solid start into Q1 in spite of the customer mix issues in China. We were outperforming the market, which is a good start again. We are well prepared to counter any effects that might come from the Middle East crisis. And we have a full focus, as you see on the execution of all elements of our IGNITE plan. So Forvia is on track. We are running. I look forward to the next months. I want to thank the global Forvia teams of what has already happened in Q1, and we're going to perform as per the guidance that we just reconfirmed. Thanks, everyone. Bye-bye.

Thank you.

Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your devices.