Sensirion Holding AG ($SENS)

Good morning. Welcome. Dear ladies and gentlemen, welcome to Sensirion Holding's Investor Day 2026. My name is Lars Dunnhaupt. I'm the Director of Investor Relations, and I will be your host today. Before we begin, please note that the event is being recorded. I'm pleased to also note that we will be taking pictures from the presentation area and the product demonstration area. Let's take a look at today's agenda. [indiscernible] will open the session with a welcome address. Then Marc will provide an overview of Sensirion and our growth strategy. And subsequently, we will hand over to the business, where [ Andreas Ed ] will present the medical area; [ Nicolin Sasa ] will present HVAC, Maxicare Automotive and Felix Home Connected Solutions. Then next, Martin, our CFO, will present the financial performance and capital allocation of Sensirion. Afterwards, we will open the floor for questions. For those of you who are here in Zurich, it's very easy to just raise your hand and we will answer your questions. And for the online audience, please use the Q&A function of the GoTo webinar application, I will read your questions aloud. Finally, we will conclude today's Investor Day with an application [indiscernible] and the production tour. Before we proceed I will briefly introduce the presenters. I would like to start with Moritz Lechner, Co-Chairman and Co-Founder of the company; then Marc von Waldkirch, our CEO; and then over to Martin, our CFO, Martin Wirz. Then from the business side, we have with us here today, Andreas Alt, Market Director Medical. We have Niculin Saratz, Product Director at HVAC. Welcome, Niculin. And then over to Max Eichberger, GM Automotive. And last but not least, Felix Hoehne, GM Connected Solutions. Finally, with every Investor Day, please note that we are making forward-looking statements regarding future events for the company's financial performance. These statements involve risks and uncertainties, and actual results may differ materially from those projected. We, therefore, kindly ask you to take a moment to review the disclaimer. With that, let's kick things off. I will now hand over to Moritz.

Thank you. So welcome here at Sensirion. It's a pleasure for me and honor to welcome you here. I'm 1 of the 2 co-founders, together with Felix Meyer and Co-Chairman. So welcome here at the [indiscernible] construction side in the whole [indiscernible] I think you saw it when you came here. You see here a nice picture but reality outside looks a bit different slightly. Therefore, I allow myself to make a few comments about that before we get a bit deeper, because it's also a bit about Sensirion and where we are. That will be our new construction -- sorry, production site there, clean room technology, which you do here. Why are we doing that? We are -- for most of our customers, we're still source supplier. They don't like that to have single source suppliers, because we deliver critical components. And if we fail, they will not ship. So there's always a huge pressure to convince them that we are safe. And we've been safe when you look back in supply and delivering what we promised to them. But of course, in clean rooms, what can happen is maybe a fire. There's stories. There are many things we do to prevent that and all things around it, and you will see it probably later, but things can happen. And therefore, that's now what kind of a double cat or an extra room where we can balance loads to be safe that we always can ship to our customers. That's extremely important. Besides that, it's incredibly full over there in our first building, so we really need extra expansion. And we do the core technologies here in Switzerland. And then, of course, all the things around it, we do abroad. So this will be the new site over there when you come back the next time, hopefully or maybe a bit later. But we develop also this building is at beautiful shape. You saw it. And also some words about that. When we bought that building roughly 20 years ago, it was already a bit an old building. I just learned now. It's built in '72 [indiscernible] year. So it was an older building. And it's our DNA at CRM to invest our money into customer solutions and good products and less into shine offices for top management. We always did it like that. And so we bought this building and we just did some minor things around it. But of course, being from the early 70s, you can imagine insulation, quality, some issues around. It's been there for a while, but now in the context of new building we address that we're making in facade and new windows. So it's all at once [indiscernible] side in the world or at least in campus, sorry. But it will look better. Good. So -- but what we want to -- I want to talk about is, afterwards, we will talk about where Sensirion is, and where Sensirion with O2. But to understand Sensirion, I would like to say a few words about where we're coming from and what our DNA is. So looking back, we went through different phases at Sensirion, are very typical for us. That's the Phase I work after foundation. Here, you see the evolution of our turnovers. And so it is face here the green one. It was all about extreme focus, extreme focus. We had our unities under component and our small flow center components, which used in some small solutions. So it was all about getting more jumping in these things and just in that. extremely focused. It was getting into new markets, we are in market before entering new markets, new customers, new applications, new trust which was resumed. Of course, first, developing the technology, but then really making it reliable. So what was this phase. We won a place. We won customers. We won market share. We got a clear market leader in the fields where we're focusing reached very high market share. For example, unity components, roughly 50%, well market share by the end of the green phase. So really a big part there. Actually, what you see here is also an interesting event here. Something happened there. Maybe some remember stay there, there was for 1 year, [indiscernible] mobile phones or in some other phones, made a huge boost. That's a huge party for a year, and then I hand over the year after. But we could defend our market share because we always said if this happens, it happened since year-on and we managed to keep the competition out there. Okay. That's Phase 1. High market share, you're there, higher reputation market, but at the same time, getting attacked by almost I think it was 5, 6 big semiconductor companies attacking the whole community was attacking us for Unity sensor components, which they try to build in their ecosystem in the end with the micro controls whatever. So that was that phase. So looking forward, of course, we came entered a new phase. From being the challenger to be challenged and having a big market share. Now the next phase had 2 big elements, I would say. First, defend our market share event all competition that was very important in that phase. It was not just taking the money and doing new things. It's about keeping it as our cash cow, defending and even expanding our market share, we managed that almost all that 1 is still left. But they got parkers of us. The semiconductor companies now putting our component on their ecosystem or giving up on that race. So we managed to defend but that was an effort. We are fighting for it. We still are fighting for it. And we also keep investing into continuous improvements and into our customer relations there. So it really maintain the market share and expand it. Then besides that, it was about opening up from having a very narrow focus, which was needed to get the clear market leader to the broader area. So we started opening up for new measurements. Most of it with existing customers, some in new applications also. We are entered into CO2 formaldehyde, PM 225. So additional measurements, which are in the context, environmental sensing, which, of course, is mainly air quality and mainly indoor air quality around our ecosystem. And you could see how this was paying addition growth, but built up on our base for where we had and still have our leadership. In the same time, we also started developing further next phase. During this year, it's not something which happens within 1 year. It's over several years. We developed new technologies improved technologies we have for the both for higher demand in gas sensing applications, mission-critical gas sensing applications. We prepared a field there in these years. You see ourselves, again, these terms. I think we probably talk cobalt later on. It's about corona, where everybody was calling for our flow centers for the ventilators in corona ventilation, but at the same time, everybody was afraid the supply chains were disrupted, everybody started ordering parts and we've always [indiscernible] but it was kind of, again, a huge part, if you some hand over afterwards where we had to get out of the gain. Good. But that's the second phase. Then blunted the third phase roughly 2 years ago. Where we started also now with the new gas sensing platforms which we have and also very further than just components go more into solutions for customers like with special qualification, special standards, needing for safety-critical applications. We expanded into these fields with these new sensing parts, which we have there. This is a journey we just started. This is a journey again, which says we build up on what we have. We keep on defending. We keep on building it up by the advance in additional fields. So looking back, what is the DNA of Sensirion. What can we learn? I think we're capable of winning market shares, getting in and winning and getting to new applications through that. We are capable of defining keeping market shares. We've done that in the past. We've also run and I think that's important at this year, we call it MaxCure. We move on traditional fields. We expand into new areas. We go that, we do that. And of course, we have now conditions that with additional technologies and additional applications to expand into new areas. This will not happen immediately just as explosion. It's a journey, a journey which has started. So that's about looking back and now with DNA. And with that, I hand over to Marc. Thank you very much.

Well, thank you, Moritz, for this introduction. Well, so I'd like to present you shortly where we are and then all about the growth strategy and also to lay a foundation for all the deep dives presented by our market directors softwares. So what is Sensirion doing? And I think this is pretty easy to explain. We just measure gases. We measure them precisely. We measure them reliably and at scale. This is kind of a common thread running through all the activities we are doing. We measure gases. Some figures at the very beginning, CHF 340 million revenue last year, we are producing here in this area, more than 250 million sensor components. A lot of them are going off wards to 1 of the manufacturing central outside of Switzerland to build solutions out of them, particular components are produced here, 250 million in the very only building, and this is also 1 of the reasons Moritz explained it that we are now constructing the second one. And we have almost half of our revenue is now generated outside of Switzerland, which gives us also a significant reduced exposure to the Swiss franc, but it's still existing as a Swiss company. What we are doing in markets, we are highly diversified in market with all regions. So we serve 4 end markets, automotive, medical, consumers, but also industrial. A lot of them will present today. And in all these markets, there is an one common sense. This is the way how we approach customers. We don't like to ship what orders can ship. We like to make the difference. So they make the difference in the way how we innovate, how we solve their complex problems but especially also how we serve customers from the innovation part up to be a reliable trusted partner when it comes to deliveries. Our business model is actually based on 5 structural trends, and I like to dive into all of them by 1 or 2 slides. So it starts first with a very comprehensive base of customers of top brands of the world. There is a lot of top brands. Unfortunately, we are not allowed to disclose all of them. And in all these end markets we serve, we have long-standing relationship with. We own the full technology stack in order to serve these customers. We have a proven go-to-market strategy always targeted to achieve market leadership in the targeted application. We have a structural resilience in the business by a high level of diversifications in different terms. And last but not least, probably the most important, the most valuable part is about the culture. So we have award-winning culture since foundation, it was actually established already at the very beginning of the company, a kind of a culture of fibration of entrepreneurial spirit, which also can attract a lot of talents and retain them. Start first with the trusted partner for leading OEMs. I have already mentioned it shortly. We don't like to do what others do. We like to make the difference. And to do so, we'll start first to identify relevant problems at customer side and turn them into scalable solutions. We do that by a combination of innovation mindset. Innovation mindset means also to push limits to go beyond limits, they seem to be real limits where you can do more than what is probably imaginable at the very moment. We combined this innovation mindset with the technology stack we have. Whenever the customer is reaching us -- reaching to us, it's too late to start with the fundamental technologies. You need the technology stack in order to serve the customer at the very moment, he is reaching out to us. And at the end of the day, the deep application know-how. The target is always the same, that means to have a product which is superior to those solutions, they are all existing on the market. Again, we make the difference there. And at the end of the day, we target to achieve market dominance. There are some examples here, 60% global humidity market share, Moritz explained before 50% back in 2014. So despite all the attacks from other semiconductor the big ones, that we could even increase the market share in the last 10 years. And there is also a lot of other applications where we are already at the very high market leadership -- market share. There is also some others. We are still on the journey from solving the problem to becoming the dominant leader. For example, CO2, where we have a market share of roughly 25%, but still growing and where we are still in the journey to achieve our goals. About the technology stack. We own the full technology stack from the chip design, in this very building, over there, there are ASIC designers, people they can design these chips in-house, all the way up through the MEMS processes. So all what has to be done on sensor elements on the chip to the sensor algorithms, data analytics, but also application of how customer support, customer support in terms of supporting customers how to design the sensors into their application. This is all internally available. And this gives us a high flexibility to innovate at that level, which matters most. Say, okay, in 1 solution or in 1 problem and 1 challenge of our customers we face and we like to solve, we probably go to the component and say, okay, component is the best solution to serve the customers. In some other applications, we go all the way up to a full solution, including data analytics and serve customers in a completely different way. We are extremely flexible in adapting our value chain according to the needs of the customers and also application specific. How do we work to dominate the application fields? Typically, it starts to identify a market problem, a market challenge, which is not yet solved properly. To do so, we need our customer base. It's a fundamental important to have this huge base of customers of top brands of the leading OEMs in the respective fields. Also the intimacy with these customers, the trust of our customers that they disclose what they really are concerned about, in order to support them. Whenever we have the impression, yes, it's a relevant problem. It's a challenging problem. We can make the difference, and we do have the technologies in order to make the difference, then we like to have a kind of a customer engagement. It's by far more efficient to have a kind of a partnership with 1 leading OEM in order to develop the application, the solution. We can learn from them when it comes to application know-how, they can learn from our technology stack from our sensor expertise. After doing this first lead OEM development we'd like to scale the solution. We'd like to scale by reaching out to all other top 5 OEMs first. And later down the road, if we have one, hopefully, all 5 of them also to reach out to all the other ones in order to scale it up to leverage what we have developed and especially also to achieve this leadership in the respective market. Afterwards, the customers are served locally. We do have the engineers locally in all the regions in order to support them, and we have also the manufacturing centers in order to produce the solutions closer to the customers. And then the whole story starts again. If you do this job well, it's the best platform in order to start with the very same customers with the next problem they are facing in order to support them. This go-to-market strategy is also underpinned by a disciplined and focused R&D allocation. 10% of our R&D budget flows typically in fundamental technologies, where we are investing early in order to be ready at the moment, we meet this technology. To give you an example, later in this session, Niculin will talk about the A3 opportunity in the HVAC market. So first of all, this has already been done. We have to invest into fundamental gas sensing technologies in order to be ready to measure A3 leakage. Afterwards, 30% of our R&D budget flows into platform development, the technology alone is not enough in order to convince customers to be engaged. So you need a kind of a platform where you say, okay, I can demonstrate what you need. It's not yet the product, but at least we can demonstrate the technology and especially it's a platform which is easily scalable and adaptable for the very problem the customers like to be solved. And then the main part of the R&D, it's working on solutions development, on solutions where we are in this close collaboration and interaction with lead OEMs in order to learn from them, but also to have a very well focused -- a very disciplined focus on the solution at the end of the journey. And then, based on this go-to-market strategy to scale it up to all the other OEMs in the respective field, 10%, the remaining 10% goes into the customization to serve all the other ones, but based on what we have already developed before. About resilience. Our business model is intrinsically resilient, thanks to the fact that we have a high diversification in markets. We serve automotive consumers, medical but also HVAC industrial applications. We have a very broad base of different customers. They are typically reacting differently. So we are not linked directly to the automotive crisis or any kinds of downturns in consumer markets. On the other hand, we have all the technologies in house. So we are not strategically dependent on any kind of other suppliers, key suppliers, they own the technologies we are based on. We do have the technology in-house. In operations, we have worked and we have invested a in the last couple of years to diversify our global manufacturing network in order to get on to the level to have almost half of our revenue produced outside of Switzerland. We have also invested into a dual sourcing strategy when it comes to supply chain. And last but not lease, since 2 years -- 3 years, we hold a strategic wafer stock in order to mitigate any intrinsic semiconductor risks linked to the Taiwanese region. Now you might have in mind and say, okay, the CEO is talking about resilience, but what we have seen in the last couple of years is a high level of volatility. You're right. Our structural resilient business model was heavily challenged by exogenous factors. You can name it factors. It's probably also 1 factor, the pandemic, and all the following up reasons. This was a challenge. I'm sure for you, it was also a challenge for us to overcome all these exogenous sectors. It started in 2020 with the fact that -- it started in 2020 with the pandemic, with the fact that we are #1 in medical ventilators. So there is almost no question, whether we serve our customers and whether we do all what we can in order to scale up the production by a factor of 11. Afterwards, the pandemic, as you know, led directly into this probably the most severe shortage of semiconductors in the last centers. And also there, we said, okay, we are a single source supplier for all of our customers or almost all of our customers. So we have an extra responsibility also to prove that we are trusted partners. So we have to do whatever we can to supply safely to them and to deliver what they need. And we did it. So we -- honestly, we were proud to reliably deliver our customers even in the highest level of shortage in the semiconductor industry. But afterwards, the handover came also hit us. That means 2023, we had this destocking effects. They also hit the company in the same way as it was boosted before in 2021 and 2022. In 2023, we faced actually a new challenge to say, okay. On the 1 hand side, we have now this destocking. So what we should do is to significantly reduce the resources in order to stabilize the profitability. On the other hand, we faced this huge chance of A12. Then we decided deliberately to say, okay, we are continuing to invest into A12 because this is a growth area we like to capture. We like to become a market leader in A12. On the other hand, definitely, we also started efficiency gaming programs in order to cut costs there where we are not jeopardizing the growth areas of the future. And in A12, as you know, today, it pays off or paid off last year with a significant increase in revenue, but also in profitability. The latest exogenous factor was actually about Trump's trade policy. Back and forth all the time. Here, we can say we are fully resilient. Thanks to very favorable commercial terms with our customers. Now the on list the fifth strength we have is the culture, a culture which is built on innovation, on entrepreneurial spirit, on taking reasonable risks to push limits to innovate and to do what is actually not thinkable to be feasible. And I can give you an example. When we started the A12 journey, our ambitions are clear to say, okay, there are many, many players in the field. It was a new fit for us. We said, okay, our target is to be the #1 to become #1. This sounds to be crazy. But we did it at the end of the day by a combination of ambitions, a combination together with the technology, with the innovation and with hard work, it's not just about ambitions, it's also hard work to do so. And this all is based and rooted on the culture we do have, which also attract and retain these people, they can do it. And therefore, it's a very high value for the company. Based on these 5 trends, I'd like to present you shortly the growth strategy looking forward. Again, the threat running through all the activities is as simple as it is. We mature gases whenever it comes to a challenging problem to metro gases. Then we are in a market which is extremely attractive. This we call it smart gas sensing, a market which is pretty large and especially fast growing, mainly driven by a lot of megatrends. There were just 4, I picked out. It's about health. There are many different applications in the area where we can add benefit, we can create value by our technology, by our expertise in metering gases. My colleagues will come to the details later on. It's about climate and environmental protection when it comes to a lot of monitoring of critical gases. It's about energy efficiency in many processes. You have gases they have to be monitored in order to make the system more efficient. And last but not least, it's about safety and regulations. There are a lot of applications where safety can be increased by monitoring the gases in the system or outside of the system. Our unique edge is today and Maurits already mentioned it shortly at the end of the story to say, we are now at a position where we master a very comprehensive set of technologies to measure all kinds of small gases, all kinds of -- all have to be more precise to measure small amounts of any kinds of gas from high-volume components up to very high-end analytical systems. You see it here on this slide, we run a lot of components, typically in millions -- and we go up to very dedicated systems, it would be nice to have them also in Midlands, but this is not realistic, but very high-end systems. And you will see on the back of our product demonstrations pretty bulky solutions, higher sophisticated to be very precise. For example, in this case, to monitor methane emissions. This is the base what we have invested heavily in the last couple of years. This unique edge to master all these technologies to be flexible to apply those technologies we need to address the problem of the customer. Based on that, we have the vision to become the market leader, not just in humidity, not just in small flow rates, not just in environmental, intera quality measuring. -- but in the global market of high-value smart gas sensing from components up to high-end analytical systems. How do we like to do so? There is 4 pillars we like to focus on. First of all, you should never ignore where you are strong today. So our first strategic focus is definitely to defend the market leadership and even to expand the market leadership in all those fields, we are already engaged today. So mainly in environmental and in flow sensing. That's the same approach as 10 years ago, when we had the humidity market and we say, okay, we expanded now to environmental sensing, but we should not ignore humidity. Therefore, we don't like to lose any of the market as we have won. And this is the very same approach we have to date. It's not even we don't like to lose any market share we like even to expand the market share even further in all the fields we are in today. On top of that, we like to build leadership in leakage sensing. This is a fast-growing market, driven by a lot of regulations in different fields, not just in HVAC. And then we like to expand into high-value solutions mainly focused on industrial applications and in medical, some examples will be presented afterwards by my colleagues. And last but not least, you can never be a trusted partner of your OEMs without paying attention all the resilience of your business model especially in turbulent times as we are in today. Also this is a fundamental pillar of our growth strategy. How do we like to tackle that? We do not have to reinvent the wheel. The go-to-market strategies, strategy we have applied in the past is absolutely valuable also to go forward in the very same way, that turned out to be a proven and valuable way how to create value and also to achieve this market leadership. That brings me to the end of the growth strategy, our playbook is to addressing relevant and challenging problems. They have to be solved where we can make the difference, driven by mega trends structurally and fueled by the technology portfolio we do have. This set a comprehensive set of technologies to metro gases and the market access, thanks to the broad base of our customers. Based on that, I'd like to shortly introduce the session, which comes now. That means about the deep dives of the concrete growth areas we are working on. to have the whole picture. There is today growth areas, they are still growing. In those parts, we are generating revenue today. This is not the focus today. It's not -- the growth is not only coming from the growth areas, but it's dominantly coming from the growth areas, but also the existing business will grow in future, but this is not the focus of today's Investor Day. Next growth areas are those where we are very close to monetization, where we're on now, and they are even sometimes already today in the phase of being ramped up. But there is even more. We are already working on future growth areas. Most of them, we cannot disclose today due to competitive reasons, but also due to the fact that some of these growth areas are still in a very early phase. I just checked shortly the Capital Markets Day slides of 2021. In this area, we didn't talk about A12 at that time because it was too early. But you can be sure we have already worked on that at that time. Otherwise, it wouldn't be possible to be now the market leader in A12. So you see there are -- is also potentially in the future growth areas, but it's too early to talk about that. There is only 1 exception where I'm being asked pretty often, this is about Lumiphase. The company which is located in the next building year, this is 1 of the future growth area. It's not a growth area for the next 1, 2, 3 years. I'd like to shortly to comment where we are with Lumiphase. So for all of you, they are probably not familiar with Lumiphase, Lumiphase is a spinout of IBM [indiscernible] the research center. And they have a unique technology to manipulate light and to provide technology for the next levels of optical communications and data center, mainly driven by AI. What is Sensirion's engagement. Sensirion hold, 49% of the shares, and we are manufacturing partner because it turned out that the process the lumiphase needs to manufacture their chips. It's pretty similar to the process we are running anyway. So we have there a very high level of synergies together. What is the upside and the downside potential? The corn is still in an early phase. They are not yet on the market today. On the 1 hand side, there is significant upside because it's AI. It's data center. So it's 1 of the hotspots of the technological world today. On the other hand, we'd like also to underline very candidly, there is still risks they are not yet mitigated. The technology and market fit but also the timing. It's a very dynamic market. And therefore, you can never be sure whether you hit the market at the right moment with the right product, with the right customers. This is not yet proven. We still work -- we are still working on that. Lumiphase, to be very clear on that, is not included in our financial planning. It's a kind of a dessert. If it works out to be good, it can be huge in future. But we can also fail. So both potentials are possible or both scenarios are possible. Therefore, it's a kind of a future growth area. The only reason why we are going to present it here is because it is a kind of stakeholder engagement we have or shareholder engagement, I am asked pretty often what's about Lumiphase, therefore, we [indiscernible] comment. All the other future growth areas, we are working in the other levels here, and we are going to present them as soon as they are more concrete. Well, with that words, I'd like to hand over to my colleagues, well, it's too fast. First of all, to Andreas for medical. Thank you.

Hello, everyone. I would like to start with a brief introduction to myself and then hand over and dive into the medical market. So my name is Andreas Alt. I'm the Medical market Director and my background where I joined Sensirion in 2015, been here a little bit over 11 years now. And my background is in electric engineering. So I studied at the technical university in Munich, did a PhD also in electrical engineering at ETH in Zurich. And yes, I'm very passionate about medical. So to build the bridge from Marc's introduction, I think medical is a very good example of how Sensirion can expand from a very strong core position into the smart gas sensing area. If we look at where medical at Sensirion is today, then our solution space spans from ventilation over anesthesia to CPAP in the areas of intensive care, emergency and transport, recovery and home care. We distinguish between 2 different areas here. One is the core business areas, which are shown here in black. And then our growth areas, which you see here highlighted in green. And we will be diving into 2 of these smart recertifications and capnography later on today. In our core areas, everything revolves around smart -- around respiratory flow sensing. So in this area, we have built market-leading positions, for example, in ventilation, but also in CPAP. And from this very strong position, we are now looking to expand into neighboring fields, into high-value applications such as capnography, smart resuscitation, metabolism tracking but also gas delivery therapy. And this is really important to understand. So we're not chasing disconnected opportunities here, but we are looking to expand from a strong position into these high-value applications -- into these high-value applications and where our sensor capabilities are already trusted. This gets us to the heart of the medical strategy. So today, we are the flow leader around respiratory care. And this means, for example, in ventilation that we hold more than 50% market share. In CPAP, it's even exceeding 90%. At the same time, the market is shifting towards multi-power meter diagnostics and this is driven by the increased chronic respiratory disease, the increased use of gas monitoring in clinical settings and the increase on need of advanced respiratory monitoring techniques. And this puts us in a very unique position. On the 1 hand side, we combine flow leadership and our very broad gas center technology portfolio. And on the other hand, we have built a lot of application knowledge, and we are able with our center technology to solve many of these complex problems that exist over here. And this together allows us to unlock attractive market opportunities which we estimate to exceed CHF 500 million by 2035. Now you may be wondering where are we today on this journey? And this throws us back in time around 2021 or after COVID. So since COVID, we've spent a lot of time and effort into investing how we can expand beyond respiratory flow sensing. And what you see here is basically a part of -- a big part of the result. So this is a high-level insight into the expected product launches that span from 2026 to 2030 and through the applications of metabolism monitoring, smart resuscitation, capnography as well as gas delivery therapy. And again, it's important to understand, we are not -- our strategy is not built around a single product over here, but it's really a product pipeline, which allows us to continuously bring products to the market. And this already gets us to the first deep dive application, smart resuscitation. So what is smart resuscitation? Important part of smart resuscitation is bag-mask-valve ventilation. And this is what you see over here on the right-hand side, there's a mask being placed over the nose in the mouth of the patient, and then by squeezing this bag, the caregiver can force air into the patient's airways. This is important to support or take over the breathing function, which the patient has lost. Now this happens today without any kind of feedback, and this is actually a problem because you do not know how much air to force or to provide to the patient. And the American Heart Association, for example, they report more than 500,000 people in the U.S. alone that suffer from a cardiac arrest every year, and only 15% of these people survive. And this low number of people surviving is also due to damage done during CPR. And this is a problem that we can address. So with a single-use sensor that combines the flow, pressure and CO2 measurement, we can provide this feedback to the caregivers in order to allow them to provide better care to the patients. This is something where we, as Sensirion can really make a difference. Let's have a look into the current state and where we are heading. So today, the bag-mask-valve ventilation suffers from poor control. It's a clinically at-scale relevant problem. There are more than 30 million bags provided in the emergency care setting alone. These do not provide any real-time feedback to the caregiver, and this leads to an increased risk for poor outcome for the patients. Now if we can add a feedback component to this smart bag-mask-valve ventilation, then it has already been shown that this feedback is linked to improved outcomes. So patients' outcomes can be improved by this. At the same time, the exhaled CO2 is a very important component and provides a lot of insight into the ventilation effectiveness. And lastly, there are even international guidelines that are now recognizing this and recommending CO2 as a key parameter for the feedback. So -- for me, this is a very nice application that we are supporting. Today, it's a high-value application, it's underserved and it's something where we can really make a difference, at Sensirion. How does our solution look? Well, this is shown right over here. This is this module that you see. It combines flow, pressure and CO2 measurement in a single-use module, this means that it is exchanged with every bag or with every patient that it is used on. We envision the use in cardiac arrest and over to the transport ventilation. The market size, we estimate it can reach CHF 150 million by 2035, and we are in designing stages with leading medical OEMs and the first introductions to market already expected for 2027. That is already next year. This gets me to the second application deep dive, volumetric capnography, Volumetric capnography is typically or capnography, the conventional capnography is typically used in intensive care today. So patients that are intubated and you see at Sensirion over here. It measures the CO2 concentration of the axial breadth against the time base. And this conventional capnography today lacks sufficient insight into the efficiency of the ventilation and the way the lung is working. And now let's compare these 2 capnography details. So on the left-hand side, we have the conventional capnography. This basically answers the question, are patients ventilated and are the airways intact? This is already very important information, and this is why today conventional capnography is already installed and used in anesthesia and intensive care. And many modern therapies today, they already rely on conventional capnography, but they could still further benefit from a deeper diagnostic insight. And on the right-hand side, we have volumetric capnography. The difference here is that now we measure CO2 concentration against exhaled flow. And this provides more information, it can tell you where the CO2 from the lung is coming from. And this diagnostic and added diagnostic insight is very helpful in assessing the ventilation effectiveness and the lung efficiency. It is increasingly used in emergency procedures and new ventilation strategies, and it requires a precise measurement of CO2 and flow, which has to be synchronized and measure it also proximal to the patient which is a very harsh environment. But this is again where our respiratory flow, know-how, and competence helps us and makes us actually the best person or the best company to address this problem. How does our solution look like? So it consists of a reusable sensor head. This is the part that you see over here and then different types of airway adopters. And again, these aiway adopters are single-use, so replaced with every patient that they're used on. When this is brought to market, we do not expect it to replace conventional capnography, but more to complement it from the beginning. But because it provides more diagnostic insight, it will eventually take over and be the preferred solution in ventilation and anesthesia applications. We estimate this market to reach around CHF 200 million by 2035. And currently, we are working on sampling to lead customers with pretotypes. And after the completion of the development we expect to enter the market or our customers to enter the market by 2028. This gets me already to the conclusion. Why is Sensirion position to win in this space? So we are the established leader around respiratory flow sensing. At the same time, we see that there is a transition to multi-parameter respiratory therapy. We are -- we can leverage our leadership as a gateway into multi-gas sensing solutions. We are the trusted -- we have trusted relationships to many of the large medical OEMs, and we've built staggered product pipeline, which is a strong foundation for our future growth. And lastly, we have moats due to the regulatory entry barrier, but also our strong technology portfolio and the deep application know-how that we have established. And with that, I hand over to Niculin for the HVAC part.

Good morning, everyone, from my side. My name is Niculin Saratz. I'm leading the product management. So, I'm Product Director for gas sensors here. So we heard a lot about gas sensors. I'm not leading all of the company. That's what Marc is doing. So what we have gas sensing is part of it. I've been with Sensirion for about 15 years. Before I did a PhD in physics, here the [ DTH, ] so I grew up here. And today, I will tell you about A12 and some other aspects around this heating, ventilation and their conditioning industry. So where do we start? The heating, ventilation, air conditioning, HVAC industry, we have 4 fields that we are active in. One is indoor air quality management. As we heard, that's where we started, like 5, 6, 7, 8 years ago, we measure indoor quality parameters like humidity temperature, fine particles, formaldehyde or CO2. So like these small gadgets that you -- or devices that you had on your chest this morning that's in the air quality monitor that measures PM2.5 and CO2. And it includes our latest generation CO2 sensor, which is the smallest CO2 sensor you can get. Sorry for the online audience, there is some benefits for being in person. There's gas furnaces and control, where it's all about energy efficiency. So you can better control how our gas burner burns to avoid dangerous exhaust gases for increased efficiency. And also here, it's been building ventilation, like when you have a the ventilation ducts you see in the building, you can either always blow fresh air in or you can monitor, well, how bad is there actually and then depending on how bad the air it is flowing more or less here. So you can save energy. So that's what we mean by demand controlled ventilation. In this case, ventilation of buildings as opposed to ventilation of patients, as Andreas had talked before. And then today, the focus of today will be refrigerant leakage where we come from a strong growth step in A12, and I will give you a little bit of insight to what the next step in this market is. Good. So this is about refrigerant leakage detection. So we are delivering this major megatrends of environmental protection. It's related to climate change and safety and regulations, right? So if you have such an air conditioning system, as you see here on the right, what is actually refrigerant leakage? What is actually the refrigerant? Inside this air conditioning system, you have a heat pump. And in the heat pump, you have a liquid or a fluid that is circulating. That's the refrigerant. And that's what we will talk about. So this refrigerant, historically, where these [indiscernible] and substances that we rebandlike in the '90s because they damage the ozone layer. We heard about that. So there was a phaseout of this very first generation of refrigerants. They were substituted by the hydrofluorocarbons, which is today, they don't damage the ozone layer, but now we found out that these have a global warming potential into 10,000s or in the thousands. So they really heat up the climate by 10x more -- 1,000x stronger than CO2 at the same amount. And so there is now, there was [indiscernible] protocol, which a global agreement to get rid of these refrigerants with the high global warming potential. And by this, the estimate is we can reduce the global warming by almost a degree. Now -- and the substitution of the of these refrigerants that was then the A12 refrigerants. A12 stands for a class of refrigerants that is -- has a low global warming potential because they degrade faster in the atmosphere. But when they degrade in the atmosphere, that's because they are more reactive, which also means they are flammable. And because these refrigerants are flammable, you want to have a leakage sensor. Because if you have such an air conditioning system in your living room and you're smoking a cigarette and there is a leak, you don't want to have the flammable refrigerant leaking into your living room without concern. So that's the first push to this market is this climate regulations that mandate the change of these refrigerants from traditional ones to the A12. To the next page. Now because we have these flammable refrigerants, we want to have leakage detection. And on the other side, this whole rise is relevant for us, while it's a new opportunity and emerging opportunity. But on the other side, it also the need for air conditioning and cooling and heating is increasing, right? So we're moving here in Europe. We're moving from fossil fueled heating systems to heat pumps, so led you find heating. We have increasing temperatures in spite all the efforts globally. So there is an increasing need for air conditioning units. We have huge markets in the world that don't have yet a high penetration of air conditioned units. That will also need more air conditioning units in the future. And last but not least, there's also cooling needed in data center and similar infrastructure. So there is a growing market. And if we put this together, we estimate the market size of around CHF 400 million or beyond by 2030 by this regulation regulatory-driven pushes just for the leakage sensing in this business. And it's not the market size of HVAC. That's much, much, much larger. It's just the sensors that they're going. Good. So that's quickly we go for. And that's what [indiscernible] A short summary of how this works and how these transitions work. I mentioned the Montreal Protocol and this Kigali amendment in case you want to look it up, that regulations banning these A1 refrigerants here that had a huge global warming potential. They are not flammable at all, and they also fluorinated substances. We move to the A12 refrigerants, which are much better in terms of global warming potential, but they are still fluorinated chemicals. And they are a little bit flammable. Now that you may have heard all this talk about the FCAS regulation and PFAS and fluorinated chemicals that Gebert forever chemicals that we heard that they show up in drinking born there well, these A12 refrigerants are such fluorinated substances. They are not as bad as these maybe, but they're still not super nice. So, the European Union is leading there to move -- to push the move from A12 to even more environmentally friendly refrigerants. So -- and one idea that so we can use the different substances that for the moment, the prominent candidate is to use propane or R-290 as it's in a friendly refrigerant and propane, you know that's what you have in your grill on the balcony. So that's highly flammable. So it's very eco-friendly, it's not flourinated, but it's highly female. And you can already imagine what this means for leakage sensing. Good. That's the difference between A12 and A3. That's actually the class in flammability, the higher the number, the more flammable the refrigerators. Good. So how does this look locally? So we have this global -- this global regulations or conventions about getting rid of these phasing out these high global warming potential gases, but the implementation is by country, of course. So each country makes their own laws, makes their own regulations and their own time lines, and this is where we go. As we say, Europe, the A12s are already currently standard. And we have been so for a while. And Europe is already thinking about phasing out the A12 and adopting the A3s over the coming decades. So there will be a staggered phase in of this A3 depending on the type of system in Europe. In Japan, also A12 is currently standard, and there is a recommendation to move these A3 refrigerants already. In the U.S., we have just introduced the A12 beginning of 2025. This is the A12 boost we talked about in the annual report. And this was happened just in the United States, and they will be due to the local set of regulations and architecture of the systems, we don't foresee an introduction of A3 anytime soon there. And last but not least, we will have other countries like China, who will jump directly from the A1s to A3s, skipping this intermediate step because now the technology for these A3 refrigerants is ready, and they are more eco-friendly. They are cheaper than the A12. So there's reasons to skip this step. So this gives a bit of a pipeline of adoption for these refrigerants. And this is what we want to illustrate here a little bit. I mean, don't take this to quantitative, but that's where we are today. So Sensirion is market leader in A12 refrigerant leakage detection, and that was pushed by this demand in the United States. That's the step function that we see. So we have achieved from 0 to more 50% market share. And our success factors were, again, what we talked about. So technology leadership without technology-leading sensing core you don't get there. And customer intimacy. There was a difficult phase for our customers. Some customers said that was the biggest disruption in the HVAC industry over the last 40 years, we helped them to overcome these problems. And sometimes, we have to think behind our customer, we have to understand their problem sometimes even better than they understand it themselves. So this application now. We are fulfilling this with a globally diversified and resilient supply chain, and we owned or earned a strong reputation for technically so reliable but still commercially attractive solution. Right? So that's the key. I mean you can't sell a [indiscernible] And this market is expected to grow a little bit. I mean it's kind of a step function for the introduction, but we'll still grow over the coming years. Now the A3, and this is important, this comes on top, right? It's not an A12 you introduce once and then everybody has A12, then you make no money anymore, no. I mean there's -- you need heating systems need to be replaced every 15 years or so. So there's a continuous stream. So that's this gray point. And on top comes this introduction of day 3 in the different regions as they come on after that. So the A3 comes on top, it comes a bit slower. It's a bit more gradual. It's not such a step function because it's not just 1 country. Other will be there in the end, it will likely be larger than A12. Again, so the push is environmental regulations. It's safety norms, that mandate then the use of the sensor. So the environmental norm mandates the A3, the safety norm mandates the sensor. And this is supported by the market because everybody sees well, that's kind of the future the way to go. So there's also a natural pull towards this A3 refrigerants. Where do we stand? Sensirion is well positioned to extend or expand this leadership from the A12 also carry this over to A3 sensors. We have the customer contacts, the customer [indiscernible] we have the technology to core. It's again, the picture Marc showed before, that it's inside this device. So we have a proven base technology. We have first parts out there for A3. And so we have started now with this first this kind of the early adopters is the heat pumps for the European Union, which is just very low volumes. But larger volumes for the air conditioning units will follow in the different countries as they come in. So we'll -- we're ready for this. We're already running, and you will see the outcome hopefully in some time in the future. Good. So why -- where do we stand? Where we positioned here? Again, market leadership is important for us, it's still about scaling this, being able to, on 1 hand, be the technology market leader but also in terms of volumes [indiscernible] market How we get there? We get there by customer intimacy, but also by being able then to use our knowledge and the experience to provide the tailor-made solutions to our customers that they need to be successful. We have full control over the value chain from the chip to the application. Nobody knows the chips as well as we do. Some customers say, I want to buy the solution from the company who owns technology. We own the technology. We -- of course, we are regulatory compliant also there, if in such a big regulatory change, it's important to be at the forefront of this and always know what's going on. And we have a global footprint by now. That's a difference to maybe between 10 years ago where we have sites -- not only sales sites but also manufacturing sites where our customers sit, so that we can serve them where they need parts. So it's obviously not the same if you ship around A12 sensors that are this size versus shipping community sensors that are maybe this size, right? So patient matters. And as I mentioned, the deep application know-how we have to understand the customer's problem very precisely so that we can solve it in the best possible way. And we are ready for that. And with this, I hand over to Max.

Thank you. Well, we have just heard we are guard sensing company, and I have a request for the technical team to open the doors to retain some fresh air, please real quick. I sense a little bit of air disruption. So for the online audience saying on, we will not feel the cold. And second, I can have a question because we met through the presentation to raise some activities, who has come back hard today. Rough gas, 30%. And this is even in 1 of the best publicly served countries in Switzerland, you have about 30% people coming by car. And this is why automotive is and will remain interesting. Automotive has seen as a manufacturing -- car manufacturing market, about 5 -- or sort of 5% growth last year. So 2025 was almost 100 million vehicles produced. So it's coming back into growth. And I would like to show you and take on the journey of what we do in the automotive sector to bring our technologies into this market. We come with our very strong footprint in cabin climate and combustion control, which Marc and also Moritz has mentioned, he has shown a global market penetration of above 50% to 60%. This is where we come from, but I would like to show where we're going in growing even further. And this is 1 key megatrend is autonomy, autonomous driving, self-driving cars, self-driving humanoid. It's sustainable in safety. It's bridging what Niculin just said about refrigerant leakage in mobile air conditioning, in MAX and it's lastly electrification of the of the propulsion of the transition from ICE to Bev. My name is Max Eichberger, I'm the General Manager of Sensirion Automotive Solutions, and I will take you through this journey. Let's first look into advanced driver assistance systems, where we see that these systems, they will pilot the vehicle without you in the meeting. And they will make sure that the vehicle is not crashing. So you trust your life and the lives of your passengers onto this system. And what can happen to the system of the first bring into place, it can have reliability issues from water ingress, for example. This is something which is beyond self-diagnosis from typical electrical circuit. So you would need to diagnose this with additional sensors, which measure either humidity of water ingress. And this is relevant not only for the electronics but also for the mechatronics. Mechatronic is, for example, steer-by-wire or brake-by-wire system. So it can enable a fail-safe operation of what we call Level 2+ autonomy. Level 5 is full autonomous. You enter the destination. The car takes you with you sleeping in the car and level 2 plus requires some certain level of alertness and maneuverability of the driver. We see an addressable market of about CHF 100 million starting in 2030, already started, but reaching this market size in 2030. It happens and as the market penetration and the adoption of ADAS, advanced driver assistance systems, will follow and come into the market. What is our solution? We have contactless water and humidity-ingress sensors. And we have also pioneered this technology by making this function safety certified with an ASIL-rated humidity sensor. We have a market position which is standing on 2 legs on the OEMs and on the TRxs, and we have a design in an engagement with LiDAR, so lie detection ranging sensors and camera providers and also steer- and brake-by-wire system providers. Coming to the second growth pillar is, again, bridging the technology that has been already very much in place with A12, in stationary air conditioning devices now bringing this into mobile air conditioning devices where we see that the requirement for PFAS free and low global warming potential refrigerants brings a huge demand also in the vehicles. Mega trend here is sustainability and regulation. We see that this change in the refrigerant leads to a new market opening up there. At the moment, focusing on R744, this is a CO2 refrigerant. And then R290, a propane refrigerant happening largely regulated in China and in European Union. We see an addressable market reaching to CHF 200 million by 2035, subject to the global regulation -- regulatory approach. What's our positioning there? We have this automotive-grade sensors in place and we placed this not only a single bet on 1 technology, but we have basically 3 technologies in place to capture this market, whatever suits the customer and the use case best. And we have received 2 years ago already first nominations. We're just now ramping up and start of production for 1 key automotive customer, and we are engaged in several RFQs request for quotations from different OEM and Tier-xs. So let me focus now on the third growth field in the automotive sector, which is 1 which I will dive more into detail. This is some runaway risk in electric vehicle batteries and the mitigation of this risk. So you see this is based on this electrification trend. And globally, we have already reached about 20% and more electrified vehicles last year. And we see that with lithium ion batteries, if there is a more function, this can lead to a reaction where the whole battery catches fire, and this goes very quickly. This is the issue. It happens quickly, and it has a devastative effect on the vehicles, on the passengers, on the surroundings, on the sub-ground parking areas and so on. We see a market size larger than CHF 200 million by 2030, also driven by the regulatory adoption. Our position here -- again, we have automotive specified gas sensing solution technology there for these kind of events. And we have, again, 2 years ago, received first nominations and currently engaging several requests for quotations from OEMs, Tier 1s and battery suppliers and already preparing the next-generation technology. But what does it mean in detail? In detail, means we see that this 20%, 25% market share of battery electric vehicles in last year. I said this was a growing year of automotive production is targeted or projected to reach almost 50% by 2030 according to the International Energy Agency. And so this market is hugely growing. And you see on the other side, the problem is growing aside. We see already about 300,000 vehicle recalls last year in the U.S. based on issues and quality topics and risks associated with the battery of a bet. This puts risk on not only lives but also reputation of OEMs where you can see different OEMs going through the media and having negative impacts on the sales revenues. But this is not only based on reputation, this is based on regulation. There is the U and TTR 20, which is mandating and suggesting a 5-minute early warning to the passengers as soon as such a failure is detected. And there you see different approaches to the regions implementing and reflecting this UN global technical regulation. In Europe, you see a ready an impact now in China, also Japan and Korea, following in the United States with the recent people from back to ICE relaxation on the requirements. Nevertheless, there is strong players also in the U.S., focusing on BEVs and also safety. So what does this technology do? You have different approaches to solve this, the conventional where you just measure temperature to slow. Where you just measure the pressure increase in the battery pack is to slow or to transient. You cannot capture the full picture because you're going through a tunnel, you have a truck coming the counterway to you generating a pressure peak, and it's gone. So this is not the fast enough and the safe enough approach to detect issues with the battery a more sustainable approach and quicker and reliable approach is to base this on specific gases that will be generated once there is a thermal runaway or thermal or an electric malfunction happening in the battery. And this is where we focus on because we do gas sensing. And this is what we do reliably at scale. And as I said, we have different technologies addressing this market and these requirements based on different places and full solution integrations. We have 2 years ago, already won multiple nominations. We see first revenue contribution this year. Last year, we did SOP, start of production, for 1 of the customers and we see scaling across all the key regions after 2030. And what's the base on value proposition for our product into the market is that we are engaged with all different players from the OEMs, from the car manufacturer to the battery management system provider or to the battery supplier themselves. So lastly, why do I believe we win in automotive? It's not only because of this reputation, which is based on 60% market share in already existing niches, but it's based on -- the solutions that we have for mission-critical problems in these megatrends. We have our reputation built up over the last decades. We have a full vertical integration of the key technology, which is similarly to the talks previously hear a lot from our customers that they don't want to purchase a solution from anyone, but from someone who really deep down knows the whole value the technical specialties and can solve the problems associated with them. For automotive and intrinsically strongly moated market you will have to have different regulatory compliance procedures and certifications in place to engage in this market. What's even more of an importance now is this global footprint that you want to manufacture in this automotive regions globally, so you can ensure a safe supply to these customers. And on our side, we can ensure access to the right cost structure of our product. And lastly, the deep application know-how that's based on several decades experience of developing these technologies and moving these technologies forward into the application. And with this, I hand over to the last market deep dive, which is governed by Felix.

Thanks. I would like to continue our journey through the markets from the streets of the world to the desert of West Texas. So you can already probably guess it from the picture. We're talking about the energy sector, the oil and gas industry. And I think we have all experienced in the past few weeks and months how impactful the energy sector is to the live all over the world and also here in Switzerland. And we at Connected Solutions, we support our customers in the energy sector to reduce their greenhouse gas emissions. So I'm Felix Hoehne. I'm the General Manager of Sensirion Connected Solutions. I'm with the company for 13 years. And as my colleagues, I have a background in physics. So, we help our customers in the energy sector, so specifically in the oil and gas industry to reduce greenhouse gas emissions, specifically this is the methane emissions. And we do that by offering a comprehensive portfolio of continuous monitoring solutions, so IoT solutions to measure and monitor methane leaks and to help our customers to manage methane to mitigate methane in the end to reduce methane emissions. We address a market in 2030 of more than CHF 150 million. Now to start, why is methane important? Why should we care about methane? So if you look at the drivers of climate change of global warming, the best scientific estimates are that roughly 30% of this climate change is not driven by CO2, but actually methane. So methane is a very strong greenhouse gas and 30% of the global volume that we have today since industrial evolution has been driven by methane emissions. These methane emissions come typically from 3 big sources, 1 is agriculture. So cars -- and the second is landfills. And the most important 1 is the energy sector, which basically the oil and gas and coal industries. And roughly 35% of these methane emissions come from the energy sector and [indiscernible] are a major contributor to global warming. Now more and more operators in this field, so the energy companies realized that there -- and they call it, it's not my root, their work their license to operate for the next 20, 30, 40 years is a reduction of methane emissions. And this is driven by pressure from different stakeholders. So in particular, there are strict to regulatory landscapes worldwide. There are the financial stakeholders of these companies are putting pressure on them, the gas buyers. So people in Europe are putting pressure on these companies and also the general public. To effectively reduce methane emissions, you need monitoring. You need to know what's going on. So what you need is a fast and efficient leak detection, you need a root cause analysis and to be able to repair in fixed leaks, and also you need accurate commissions reporting, and that is what we are supporting with our solutions. Now if you look a bit more into the global drivers, and in particular, the regulatory and reporting drivers, there is a global industry reporting program that is very important, that's very well established. It's a program by the United Nations. That's called the Oil and Gas Methane Partnership, or OGMP. And it's basically covering the biggest part of global oil and gas production. So most of the big companies and the household names that you know are members, including companies like Total, like Shell, like Exxon and many, many more. So overall, [ 150 ] and more members globally. And if you are a partner of this program, if you're a member of this program, you have to report your emissions transparently and based on measurements and that's where our solutions help and come in. Then there is also a global regulatory landscape. I want to start to first look at the major main market for oil and gas production at the United States. There, it's important to understand that in the United States, there are regulations on state level and on federal level. Now to already anticipate a question later in the Q&A, Federal level in the United States, what about Trump? And so there are a lot of important regulations that enforce methane mitigation, methane monitoring on federal level. This is what we read in the media about the environmental protection, [indiscernible] These regulations are in place since the Biden area, but they are currently not enforced and are on hold under the current administration. So that means on a federal level, we lack additional tailwinds that would have accelerated this market. Because these regulations are not enforced, they are still in place, and we don't know what the future brings, and political administrations will change again, probably, let's see. But just at the moment, not a strong driver as you might have expected. But in the United States, we have a lot of relevant regulations on state level, in particular, in oil and gas-producing states like New Mexico, like Colorado, like California and Texas, that are very relevant and enforce methane monitoring. There's a specific interesting example, California, it's a democratic state, strong environmental position. They have or they're planning to put a regulation in place starting in '28 to 2030 that requires monitoring of most oil and gas sites continuously in California. So that's a very interesting market potential there. Now if you look to the neighbor to the north of the U.S., very strong oil and gas production. And there, we see a lot of movement just recently starting end of last year, we see upcoming much stricter federal and provincial regulation in Canada, which are in effect in '28 and then fully rolled out until 2030. So that's creating a lot of momentum there in this market. And also, here in Europe and also in partly covering the Middle East, we have upcoming stricter regulations for oil and gas operations in Europe. But even more importantly, the European Union is 1 of the biggest gas buyers in the world, and the U is implementing an import regulation that also has an impact on methane production forces people who want to sell to the European Union to manage their methanation. Now where in the oil and gas industry, do we want to measure and mitigate methane? So we see here a nice picture of the oil and gas value chain. And the biggest part of methane emissions comes from what is called in the industry, the upstream segment, so the production of oil and gas. So you see here on the right, a classical picture these horse head tons in the West taxanes, actually how it looks like there. Those are typically oil and gas production side. You have more than 100,000 big ones that produce a lot of oil overall and gas. And overall, you have roughly 1 million active oil and gas sites, a lot of them in the U.S. These gas sites are typically the size of a few football fields, they have these pumps, they have tanks, they have separators and you would put a few centers on to monitor them. Now moving more towards the consumer. There is a big segment that's called the midstream segment, so the transport and processing of oil and gas. These sites are much more complex, much more equipment, they are roughly a bit more than 10,000 sites of this worldwide that also needs to be monitored because they significantly contribute to methane emissions. Then there is a third interesting segment that is offshore production, which has very specific requirements. These are huge installations, obviously, and they are a bit more than 1,000 of them worldwide that are interesting for monitoring. Now if you look into methane monitoring, there's very specific and interesting problem, and that is how do you monitor certain oil and gas in -- to show that showing a very specific graph of how oil and gas emissions actually look on such a side. So what you see here are real measurements from a real oil and gas side, a midstream side over a couple of months. And if you look at this graph, it's a very important realization that is new for most people who have never seen this and that is these emissions fluctuate wildly. There's a lot of reliability. There's 1 of things going on. So you see these are huge emissions, and you see period there is almost no emissions. And then again, you see increases. And here, this should increase from on oil and gas side has probably the CO2 emissions of a big village just in 2 or 3 days. So that's significant what's going on there. So big picture, emissions oil and gas side, a lot of reliability. There's a lot of things going on. Now the challenge is the current best practice how to monitor emissions is what is called a periodic measurement. Periodic just means you go there once a year, maybe 4 times a year. And you do measurement for 5 minutes for 1 hour or so, and then you try to understand what's going on, on this side. And you typically do that with a drone survey, you do it with a flyover or you do that by using handheld equipment to monitor these leagues. Now there's an obvious problem, and that is you can detect leaks quite late. If you go there once a year, you can be 12 months, too late. So there was a leak that's going on for 12 months. You also miss all these emission spikes. You can't see them. And if you want to accurately calculate your total emissions over the year, this can't be accurate by just going there 2 times a year. So there's a lot of missing in the current best practice of monitoring. And that's why continuous monitoring is very attractive, and we see a lot of potential in there, because if you continue see monitor site and this black measurement of [indiscernible] is actually our sensors measuring continuously what's going on on the site. You have much, much faster detection of emissions. So instead of a month, you go to hours and you can accurately report our total emissions over the whole period. So therefore, we, as sincere and we focus to become the market leader and one-stop shop for continuous methane emissions monitoring. And with 1 stop shop, we mean that for all these assets in the different parts of the value chain, we have a technology and solution. So starting for upstream, we have monitors that you can later also see over there that you put on these sites that measure methane emissions. We have sensors that can be put on offshore platforms that need [indiscernible] explosion-proof certifications, and we have gas imaging technologies that are very well suited to monitor emissions on complex sites. And we also have solutions and instruments that monitor gas composition in the gas stream and the gas transportation. To make it a bit more tangible, I will show you a very concrete examples, because I'm not sure how many people already have been on the oil and gas side. It's very interesting, very interesting experience. And so this is an example of one of our technologies, it's a gas cloud imaging technology, so a camera, but a camera for gas. And you can see it over there in the back. This is installed in the West Texan dessert on a -- it's called a central tank battery where you collect oil and gas. And what you see here is on the right side, the picture that you would take with a normal camera, a visual camera. And on the left side, a picture that you would take with the gas camera. And in the gas come very nicely, you see very clearly an emission from a tank top. And this is actually what we provide as a picture, via cloud interface where data connections to the operator of this oil and gas sites, and they can then look at this picture, identify the root cause and take action accordingly. So what we're offering as Connected Solutions is also where NIM comes from is not only the center technology, the center nodes, that's the basis, that's our baseline. And but we offer a complete solution so that we are able to deliver these insights, these pictures, these information to the end customer, to the oil and gas operator, who then actually fixes the leak. So we have as a basis, very accurate sensing technology based on a lot of Sensirion technology. And we have designed around a robust IoT node. So you can imagine that these sensors have to survive for many, many years in Desert in Texas, and also in the Winter in Canada with minus 40 degrees. So it has to be very robust, very reliable. On top of that, we built a lot of data analytics for the quantification and localization of these leagues. We built just corresponding software interfaces. So it's all the cloud-based infrastructure to support these operational workflows of our customers. And in the end, we also provide customer and field service locally in the oil and gas regions. Where do we stand in this journey in terms of markets and regions? At the moment, we focus mainly on North American market, because it's by far the biggest oil and gas producing region in the world in terms of number of sites, but also production volume. So mainly the U.S. and Canada, but also Europe because of the strict regulations and the Middle East are interesting markets for us to come. Now in the U.S., the main drivers are, as I said, the state regulations hopefully, at some point in the future, again, federal regulations that would be very helpful. But also, we see that all the global players, they have their own midterm agenda. So someone like Exxon has a mission reduction pledge that goes until 2035 for 2050, and they reduce their emissions over time. And we already see that LNG exports to Europe because of the European import rules are very important for the U.S. and therefore, methane reduction becomes a driver there as well. And we have multiyear contracts and big deployments with 3 of the top 20 oil and gas producers in North America, and we have a lot of pilots to fill our pipeline. Canada at the moment is an emerging market because of the new stricter regulations that are currently being implemented. So we are already present in Canada for quite a while. So we have feel proven in this minus 40 degrees environment with multiple small-scale deployments, and we see now more and more interest in pilots and testing to be able to address the upcoming new regulations. And also, we see more drivers in the U.S. So there are new regulations, as I said, there's this OG&P partnership that drives, for example, adoption in the Middle East. And there we have multiple ongoing or upcoming pilots. Now to summarize why are we positioned to win in this market. First of all, we are supporting with full solutions a megatrend that is reduction of greenhouse gas emissions. We have positioned ourselves as a one-stop shop for continuous monitoring, which is very attractive, in particular, for the bigger operators who have assets along the whole value chain so they need different solutions. We own the whole value chain from the sensors to the complete solution, including the analytics and software. At the core, we have very strong core technology, sensing technologies based on the Sensirion heritage. We have a strong local presence, actually in the oil and gas markets. So we are present in America, in North America, in the U.S., in Texas and in Canada. And this whole business model is an attractive service business model where you typically have multiyear service contracts with these customers. And with that, I hand over to Martin.

Thank you, Felix. Now what does all these examples, those 4 examples that we have seen have been common for these market deep dives. Brings us back to our playbook that Marc presented beforehand. You have seen technology ownership. We have seen that we have a broad-based technology portfolio that we can master these applications that were just presented. And we have also seen for all these applications, we do have market access. We work with leading OEMs together to understand the problem to make sure that the technology portfolio fits the needs of the very specific application. And very importantly is that we have a structural tailwind, because these are emerging applications and megatrends that we can unlock with mission-critical smart gas sensing solutions. And with that, I would like to continue with financial performance and our capital allocation. First look at historical financial performance, then look at capital allocation and also on return on invested capital. Now if we look at the financial performance since IPO. That's also what Mark has shown on his slide, we can see that we have a growth of 13% in constant currencies over the last years since IPO. -- supported also by an average adjusted EBITDA margin of 17%. And this underlines our business model, our go-to-market strategy on the past side. but it also shows our cost or our balanced and disciplined capital allocation in the past. With the growth fields that we have presented before, focusing on mission-critical application, having market access, having the technology portfolio and supported by secular megatrends we convinced that we continue on this trajectory going forward. Also Marc mentioned that before, we had volatility in the revenue given by external forces, cat supply chain disruption and so on, and that definitely also translated on the earnings profile. And there, it's our ambition also to build resilience into the earnings profile going forward, and that's what we have been working on also in the last years. I would like to walk you through some of the levers that we have in that field and it starts also with the innovation and the strength to innovate -- and with that to solve mission-critical problems, have solutions that create the top line growth that for us, very important to create their stability and strength in the earnings [indiscernible] the market leadership that helps us on the gross margin side -- of dominance I heard also here often full value chain control from component to solution faster more than that, the supply chain with our suppliers to also there we manufacture. We are also enhancing the cost structure flexibility. For example, our A12 sensors for the U.S. market are produced with contract manufacturer in Mexico. So that helps us on the flexibility, and we also established a going forward with that in other places. We heard this also before, we internationalized our footprint on the manufacturing side, almost half of the revenue is generated with end products, not any more produced here. The core, yes, but the product module and so on, not anymore can be Hungary, can be in China, can be in Korea, so to internationalize footprint that helps us on the FX exposure on 1 side, but of course, also on the cost structure overall. And naturally, we're also going with adoption of AI that helps us to create flexibility in the cost structure, capitalize on that and, of course, continued automation and optimization throughout the whole P&L. Now another important aspect for diversification is the diversification across markets, the diversification across regions and also across the customer segment. So we do not have a single dominant customer that we rely on or a single dominant regions that we rely on. We have the highly diversified setup across these 3 elements, and that creates stability. It creates resilience and because, for example, in the market, there are different drivers and that helps to create the stability. We have also seen very different deep dives beforehand from HVAC to Connected Solutions, Medical and Automotive. So this will continue this diversification, which is important for our resilience. Important is if you go back to the -- our edge, the technology fundament, they can serve all the markets all the regions and also the customers. So we have there a fundament from which we can serve in this diversified markets. Turning to cash generation and the balance sheet. And with that also capital allocation strategy for us. If you look at the past, we had a strong cash generation. We could fund many of our investments through the -- through operating cash flow and free cash flow. So we have very significant cash generation, which enables us to fund our growth investment. If you look at our capital allocation strategy, it's for us important and the focus to use that for organic growth. So organic expansion is our primary capital allocation priority. We also have, thanks to the strength of the balance sheet, significant non-dilutive funding capacity for M&A activities. If you look at our M&A priority, it could be regarding to technology acquisition, if we see the unlock there maybe an adjacent application to existing -- in existing markets. that we focus on technology acquisitions, but it can also be to enter into new market segments, expand market segments where we then can make an acquisition in that field or combination that we have seen in the case of [ Kowa, ] where we gained the technology and also an expansion of the market access. Overall, we are committed to a conservative leverage profile over the cycle. That helps us to on 1 side, maintain flexibility, but also gain resilience. And capital return strategy, we will reconsider that when surplus liquidity exceeds attractive reinvestment opportunities on our side. At the end, it's all about value creation and their return on invested capital is an important parameter for you, but also for us. When you look at our historic ROIC, we achieved an average ROIC of 17%, which is well above our cost of capital. And therefore, we could create their significant value throughout the last years since IPO. And therefore, also our ambition definitely is to strengthen that. And we have clearly identified also areas where we can work on to further enhance the long-term value compounding of Sensirion. Predominantly, of course, we can leverage the technology and the market leadership. That's what we have presented to you today, some parts of it to unlock the growth areas and to capture also eventually the benefit of scale with that. We continue to execute on strategic initiatives to structure the strengthen the earnings profile. I have presented them beforehand to you. And of course, also, there is leverage on increasing the capital productivity by reducing it across the organization, which will free up additional resources on our side. And of course, there is also a potential to refine capital structure to lower cost of capital while, of course, for us important preserving the strength on the balance sheet. And that brings me back to our midterm guidance, which we are today reaffirming and confirming. So that means that we see revenue growth in the low to mid-teens, as communicated already in the last Capital Market Day and throughout the period after and an EBITDA margin in the mid- to high teens. What we have done, we have demonstrated the ability in long-term growth value creation over the last period. And of course, with an ambition also now to increase the earnings profile enabled by our strategy. Gross margin resilience is important to us, and it's structurally embedded also in our strategy. So mission-critical, you heard a lot about the mission-critical applications that we serve with the growth field, the regulation-driven applications, of course, they help us there on the gross margin resilience also by being a market leader. We have a clear capital allocation framework that we employ, and that ensures also a disciplined and, of course, value-creating deployment of our capital. We have a healthy financial foundation on the balance sheet, but also a strong cash generation also to fund future growth of the company. And with that, with the confirmation of the midterm guidance, I would like to hand back to Marc.

Well, we come to the end of the presentation, and we will like to hand over to you for questions. A last statement from my side, more probably on a metal level also to kind of a food for brain for you. If we look forward, there will be 1 disruptive change in the world. Unfortunately, not driven by Sensirion. This is AI. AI will not only make our work more efficient, but especially, it will also reduce the access or it simplifies the access to software and to code software that everybody, each engineer can actually code software, not only the dedicated soft engineers. The easier it gets to code software. The more important is actually to focus on those elements where software is actually working on. And these are data. Where the data coming, from sensors and from the hardware. We used to have a time in the past where hardware was actually boring. The new world is about software. I'm deeply convinced me that we will see in the future a higher focus on hardware, data generation rather than on software because software will remain important, but it can be coded and produced by almost everybody, thanks to AI. This is more on the meta level, as my final statement today. And now I'd like to ask my colleagues to come on the stage, to be ready for your questions. And I hand over to Lars to moderate the Q&A session.

Thank you. As I said before, we wanted to start with questions here from the audience, but I would also like to send a message to the online participants. There is a question online. It's a financial question. Marc, Sensirion has never paid a dividend. It's understandable. It has a start-up, but now Sensirion has grown up. Can you please elaborate on the future payout dividend policy?

Indeed, it was shortly mentioned by Martin, we create value, and we create good capital version even last year. And we have a very strict or clear strategy, how we like to allocate this cash, which was generated. First of all, we like to reinvest into organic growth, because organic growth has turned out to be a pretty good profitability in terms of ROIC. Afterwards, we like also to strengthen our position whenever we see some selective M&As, mainly with market access reasons or for technology ownership. And in future, if we see that there is a surplus of cash, which cannot be either invested into organic growth in a reasonable and profitable and value generated way or invested into M&As in order to strengthen the company's position for the future, then definitely we will reconsider our dividend policy.

Thank you. Maybe another online question. Martin, can you elaborate -- Marc, can you please elaborate on given the building of the clean room on the CapEx expansion, elaborate on growth CapEx and maintenance CapEx for the years to come.

So to comment on the CapEx requirement for the building. those audience have seen it being built. That's cash out this year and next year, a total of about CHF 40 million in CapEx, split between those 2 years. Of course, there is also some part of equipment afterwards that the part for the construction of the buildings. The others, we don't disclose.

Good. Maybe also here to the audience and see if there are any questions.

Maybe for the chemistry of the batteries, thermal runways, you talked about lithium-ion technology. What happens if the market shifts more towards LFP or solid-state batteries? How are you positioned there?

We see this happening also with our key customers, and we are engaged in different sensing technologies and these topics.

It's needed for all of them? Or is this lithium-ion the most dangerous one?

Lithium-ion is at the moment, the most dangerous one and most prominent one of the problems. And also for solid state, we are engaged in early sensing demand discussions.

You maybe quantify a huge opportunity [indiscernible] you alluded to. And secondly, 49%, is there any chance you could raise the [indiscernible] that would be the second question.

Well, about the potential -- Sorry, I can't quantify it, because it can be really huge. I can -- you might have even more information about investors' view on AI and on the trades to higher bandwidth and optical communications. But to quantify that in revenue, it's simply not possible today, especially because it's not just about the size of the market. It's also about the market share you can win, about the technology market fit and all this, there are so many elements are not yet clarified fully that it's too early to speculate, but even internally. It's not a question of disclosure. It's a question of speculation, which is actually the potential at the end of the journey.

Could you scale the market opportunity?

What do you mean by scale the market opportunity?

Because you said you're thinking about market size and your market share, and this is all on in motion. But what is the market potentially because we have seen market size is a positive for verticals today. So I was just wondering whether we also scale the market size for Lumiphase?

It's just too early. That's also the reason why we are not going to talk about the future growth areas and Lumiphase's exception because of this shareholder situation. But it's too early to speculate on the market potential there.

And it's still in the risky phase? And on the shareholder situation?

With the shareholder situation, at the moment, we have 49%. We have 2 board seats out of 6 board seats. That means we have a real partnership together with the other shareholders and also with the founders, which is extremely important also as a kind of the foundation of the company to have the foundation -- the founders on board. At the moment, there is no discussions about going up to higher levels or going down to lower ones. It might happen in the future, but again, it's too early at the moment to plan for the next 2, 3, 4, 5 years. That's really -- it is too early phase to talk about that. All can happen.

I saw another hand.

I just wanted to ask about the 51% that you gave some...

Okay. Good. And one other major shareholder.

Yes. A couple of questions on Connected Solutions and also a follow-up if I may. For Connected Solutions, maybe are you already seeing some impact from the Middle East war. Firstly and then secondly, also on regulation, it is quite clear that continuous monitoring is better than flyovers. But is there a chance that these flyovers are good enough for the regulations? And how much more expensive is it for the Shell and the likes to deploy this continuous monitoring? And lastly, also if you are able to give an idea about margins since it's like a different business given that it's [indiscernible] service, what kind of margin profile...

Yes, absolutely. So let's start with the question on the maybe e-sports, politics. So we are actually currently in the phase of planning to start the pilots there to test our technologies in the Middle East. This seems to be progressing despite the difficult local situation. So there are parts of the Middle East, is the what he told us last because at the moment, it's business as usual, at least in parts of the Middle East, astonishing, but it seems to be the case. I mean there's obviously political uncertainty in the weeks or months to come. Hopefully, the satellites to judge. A question about margin. So this is a -- it's not a pure software service. It's an IT business model. So it has margins that are high on the higher side of the sincere product portfolio. I can say because there is a stone aspect tilted for us, it's not pure software because it's a combination of now to product. And continuous monitoring versus flyovers. So there are -- most of the commenting first on the regulatory drivers. So most of the regulations now continues monitoring to be nutritive periodic measurements. There are a few upcoming regulations that mandate very likely continuous monitoring, the ones in Canada and California. So they will be attractive because their flyovers are just not a potential solution. And is continuous monitoring cheaper or more expensive than fly owners? And that depends the bid on the type of assets you have. So in many cases, if you have very complex assets like a gas processing plant, you have 1 asset or 2 and then you have to schedule a flight over that's more expensive monitoring. If you have 600 small production sites in the Permian, 1 flight overall flows per year are typically less expensive than is monitoring, but also you use a lot of information about your site because it's cost if you actually want to reduce the pain emissions till the flyover does not help us. So what -- we see what we are typically doing and specifically also the operators that we have scale deployment is the use technologies complementaries with the equip most critical assets with continued monitoring, and in addition, they make a flyover inventory over the whole portfolio, every once a year, maybe 2 times a year to get a big picture of all the sites. At the moment, we see more complementary adoption.

Before we take more Zurich questions. Let's also take some more questions online. Can you please elaborate on why Sensirion was not exposed to the auto downturn, inventory correction?

This is based on the fact that we have a very broad diversification through players, different OEMs, Tier 1s, different regions, and also different stages of the product life cycle.

And another question from the online audience. When do you expect to have more visibility on Lumiphase? Is it in 2 years or longer? Can you say something about that?

I see -- it's so tough for you as investors to look into an additional option, which is not included in our financial planning without having visibility. Unfortunately, I have to disappoint you once again, if I knew when we know more, I would already know more today, but I don't. So no, really. Again, I think the only what you can take with you is we are trying together with Lumiphase to support the race on the next bandwidth in optical communications, driven by AI. This can be huge. It can also be a failure at the end of the day, because it's a kind of -- like I named it before, it's a dessert. It can be really huge. In 2 years, in 4 years, in 5 years, nobody knows exactly because the timing, the market and the technology fit is not yet proven. And therefore, you can't talk about the time line, but it has also some risks intrinsically due to the fact that this is real innovation and real innovation cannot be planned. In a business plan you have to believe in that, and you have to take some reasonable risk. This is exactly what we're doing without betting the company. It's a part from all what we are doing internally and therefore, also not included in our financial planning, not now, but also not in our midterm guidance.

Back to the room here in Zurich.

I ask you for forgiveness Marc, but I have a question on Lumiphase, and it's very interesting, but it's also loss-making. So I wonder if you have an idea on countries that they might need more capital again? And if so, would you participate? And anything if you could share that.

Also this, at the moment, it's too early to say. Definitely, they will need some additional capital increase, whether we are going to participate at which level or not is not discussed, it's not decided, so it's too early at the moment.

Leak detection market makes me a bit like could you, at some point, become active markets that a company like [indiscernible] they are supplying semiconductor equipment market, for example -- semiconductors around the vacuum or am I completely off with seeing a certain connection that you also have to measure gases there?

In Sweden -- so yes, there is opportunities for each. So so there's instance, many toxic gases used or gases exposed in the industry in general and in semiconductor, for example, there's always -- there's also use cases again in their infrastructure. So also there, we may have low puts kind of continue outcome refitted for gas sensors, the devices over there for [indiscernible] sites. So yes, there is a potential but it's one of the many fields we have not talked about.

And for example, IntriCon checks whether battery is not leaking when it's produced. So that's not a market you're currently looking at, you would be the continuous monitoring 1 battery is in a car. That's [indiscernible]

Exactly. This is the high-volume market.

Can you maybe talk about where you see the biggest differences end market split compared to 2025, which factors would you highlight. What I'm really trying to get with this question is, where would you see in absolute terms, the strongest growth drivers that could change that mix and?

It's hard to say there are some projections, internal projections about the market split and product splits in 2030. And these analysis actually turns out that they is more or less stable. So that means there is no fundamental shift either towards automotive or towards medical or towards industrial applications. And also, this is reflected by this pretty broad range of different growth areas they will kick in. Definitely, Medical is always moving slower than probably the HVAC industry. This is by nature of these 2 types of industry. On the other hand, all the medical growth area is already further progressed in their journey compared to some other growth areas. Therefore, our projections tells us that more or less the mark split can be more or less the same level as today.

That also informs your target of a stable margin or are there new meaningful changes within the end markets that you would highlight?

No. I think already today, we do have a pretty large range of gross margins across the solutions and the components. We also there, we expect to be more or less on a stable profile as today. I don't see fundamental changes.

Le'ts take some more online questions. Will the strong developments in the area of AI and with that, also the acceleration of development of software code, will that support drive the sensor business?

I think so. So on the 1 hand side, it gives us the better chance to reach out to solutions. They are a combination of the core of our components and hardware combined with software. I think 1 good example is Connected Solutions today. The core is software. It's hardware, sorry. But at the end of the day, there is a lot of software to be written. And this can actually be done easier in future or even today compared to probably 5 years ago. So for us, on the 1 hand side, it's a facilitator AI to reach out to those areas. We are not the experts. This is the software. But we need in order to provide comprehensive solutions to our customers. On the other hand, it -- the hardware is not that easy to own for those potential competitors. They are the experts in software, but they now have to reach out to hardware in order to provide comprehensive solutions to their customers. So we have there a strategic advantage because we are the owner of hardware and software gets easier. And for the software companies, it's hard to gain the expertise in [ Hollar. ] So this is actually the way how I see the future we will see probably in 5 years, we can look back and say, okay, it was right or it was wrong.

Next online question is a financial question. The ROIC has been presented and the question is as the ROIC calculation include or exclude goodwill, given that your report according to Swiss [indiscernible]

I would have to look into the details and we can follow up afterwards.

Thank you. Then looking at the audience here in Stafa.

You see currently any impact from the more in Middle East and kind of supply chain input costs?

No. At the moment, we don't see a direct impact. There are some concerns about the energy supply in Asia. But at the moment, also supply chain is fully stable.

One question on A3. I was just wondering, you mentioned that one of the driver is also regulation in the EU potentially in the U.S. potentially in China. But nevertheless, you forecast a very gradual ramp-up of that business. Why is that would not a major regulation in the EU trigger much more faster adoption?

I can answer that maybe with an example of the EU precisely. So the regulation stipulates to mandates, introduction of it's actually the exclusion of HL over time trading between 2027 and 2030. So we start first with the heat pumps that offer a certain amount of refrigerant inside and then you go to the next type of systems and so on. So already in the EU, the spreads over several years. If you have these several countries in terms of good spreads. So that's why in the aggregate, we assume it will be somehow see. I wouldn't say that, that can be a surprise, but there's a big thing somewhere but that's all it's still in...

Let's take another online question. Can you please elaborate on the risk from China competition being on the chip side, on the module side or solution side?

Well, indeed, China is a challenge. China is also an an opportunity. I'd like to start first with the opportunities before we talk about change. I think China is still today a very dynamic market. we are present. We like also to increase our presence to serve our customers locally as much as we can. Also in A3, but also in a lot of these growth areas, we do have a great partnership with Chinese customers. And what it turns out, and this brings me also to challenges is on the one hand side, also Chinese companies, they appreciate to have real sensor experts at their side and innovative companies. And then they don't mind to work together with non-Chinese companies. There are some exceptions if there is especially in automotive, there are some local OEMs, they don't like to work together with non-Chinese suppliers. But in general, whenever you can create value for these companies, and this is not that different to European and U.S. companies by innovation, by support, by application and sensor expertise, they like definitely to work together. There is one challenge. We can also become better. And this is a statement I repeat again and again and again, they are extremely fast. And we have also to -- not we as only whole Europe and U.S., if we like to win in China, we have to be faster and in the iterations to serve the customers. That's also one of the reasons why we shift more support for Chinese customers to the Chinese region in order to match the expectations of our Chinese customers. But in general, I see the challenges, but I see even more the opportunities for us in the Chinese market.

Another online question. Could the shortage of Helio get a problem -- become a problem for a Sensirion on production?

Okay. Of course, we looked into that. We are aware of that. But at the moment, we don't see -- we also don't consume so much helium on our side. if it's affecting eventually in the whole industry, we don't know, but on our side, no.

Maybe another smaller one on market shares. I mean, we have a high market share of 56%, 90% in the general segment. Speaking about the new segments, you're moving in, what is the kind of minimum level you try to achieve and what the most likely of these different growth areas you presented?

Simply spoke, our ambitions are 100%. No. It's highly depending on the fragmentation of the market. So some markets, it's easier to get very high market shares because the fragmentation is low and you have just to win 3 or 4 big guys. And in other markets, you have a huge long tail of even small customers, you probably not -- you don't like to serve directly because they are too small. And -- but at the end of the day, we always strive for market leadership. And that implies 30% up to 50% of market share is our target. Whether we are successful in reaching this level is still open, but this is at least our ambitions. And even then, we are not relaxing even with 50%. The good example is humidity will like to expand it even more. And then at the end, I come back to my very simple to answer at the beginning, 100% is the very end.

We have another question here on the left hand side.

Regarding the transaction risk lower and you're now investing here at CHF 40 million, but we want to actually internationalize more cost allocation cost footprint. How do you do that? What do you have in mind there? And then I have a second question on the balance sheet.

Yes. So here, we are committed for Steffa as a main hub also where we are. And the second clean room makes sense to have it also next to the other clean benefit from synergies. And component manufacturing will be here and also like in the past, it's, of course, we need it for capacity purposes but also for redundancy for business, as we have heard. But nevertheless, you have seen that we have customers internationally. So we are serving them internationally with the growth. Of course, we more and more serve them internationally. But then also we have already now R&D, for example, in Canada, but also another place of the world. So that's another part where definitely we can internationalize and then also all the function that we can grow into more of a network organization.

But no other large projects like a current manufacturing?

So Hungary East will remain an important manufacturing site for that one. And of course, there, we are going to invest in future ramp-up of products. We shift either from here to Hungary product lines, but also start new products directly in Hungary. So that will be definitely a big and an important location for us for future manufacturing growth.

And then the second question on the balance sheet is on the financial side. You mentioned that you wanted to decrease the cost of [indiscernible] What you have in mind?

So definitely, ambition also to that 1 and that we have potential. But today, it's not the time to layer the concrete strategy there, but definitely the ambition -- but for example, also this building here, we can also see how we finance that going forward.

So I think the autonomy market in automotive is very interesting. So you mentioned this mechatronics. You can make reliable with your sensors. Isn't there maybe a chance to also scale that to the markets? And in automotive, you have steer-by-wire, right? In airplanes, there's fly-by-wire, maybe other mission-critical things that I'm kind of thinking for myself, why haven't people used that before. And on the other [indiscernible] continuously measured for humidity damage to parts. And so couldn't there be a market or other markets where we could apply the same principle nd just convince customers, say, hey, look, there's this little tiny sensor you put in, and we can then kind of guarantee or measure better that it works all the time.

That's a perfect question. And I hope I put the answer with the humanoid robots there. We clearly focus on the high-volume markets because the rest will follow. But this is one of the bridges we will take looking into one of the next big manufacturing, autonomous manufacturing equipment, which will become autonomous. So this is one of the adoptions from a clear automotive focus to provide a broader focus in the industrial revolution.

I'm talking not just on autonomy, just anything that that is mission critical in the market as well or to extend?

No, we have this already. This is already in place in different niches, but it's not that high volume already. We have this. For example, if you do and explosion with Sonoran so you will have humidity monitors inside these devices to make sure they will function rightly when the explosion happens to scatter the back scattering acoustic wave. This is 1 of the examples. But it's not high volume, but we have this proof of principle there to scale into the high-volume applications.

To add the one. So these are often a bit niche applications, if you address them with a sensor component. But if you forward integrate the it can become attractive. And that's, for example, the case with Connected Solutions where we don't sell methane sensor. We don't sell the methane instrument. We sell the end-to-end solution. And then it's where we can capture the most of the value.

I'm not an engineer. [indiscernible] and we're talking predictive maintenance. I don't know how much of a problem for any type of machine, water or humidity potential is for breaking down, but if it is a big issue then maybe putting a sensor there could provide that, I don't know.

The answer is yes.

Any more questions here from the audience in state? I also don't see any additional online questions. And with that, I would like to hand over to Martin.

Thank you all for participating today. I hope you take some things back what you heard. You also get that to not forget us in your home that we just briefly touched on it in the presentation on HVAC. It integrates basically a lot of our sensors into one compact device and again, iterate our playbook. We work with the customer, they know nothing about sensors. We very closely to make that happen. Everything insight comes from us with our portfolio of centers and supporting again on this megatrend. It was very difficult to get them. This is enough for today because they are always sold out at the moment. We had to put some threats to get them even from Germany. So that's maybe it's a wrap-up message from my side. And with that, I think we can go over to the Buffett and continue the discussions there. Thank you all for joining today.