Good morning also from on behalf of PFISTERER. Welcome everybody to today's webcast covering the Q4 figures and the annual report of PFISTERER Holding SE.

We would like to structure today's webcast in three different chapters. We want to share some introductory information about PFISTERER for the ones who are not so familiar with the company and the team.

We in a second chapter would like to talk about the financial performance of our quarter four, but also of the full year 2025. Then finally, we would be moving to sharing our view on some some important elements of '26, possibly '27, and also 2030, and this is named here as the midterm outlook.

With this being said, let's move to the next page and the introductory slide of the executive board team. My name, I'm the person on the left.

I have I'm a studied mechanical engineer and I have a business degree. I'm meanwhile since 22 years responsible in different companies as a managing director or executive board member.

Meanwhile, I'm in my fourth year here at PFISTERER, and I'm taking care of the functional areas of operations and finance. I'm the speaker of the board and would like to hand over to my colleague Konstantin, who is sitting next to me.

Konstantin?

Yes, sir. Good morning, everybody.

Also from my side, a very warm welcome. I'm also more than 30 years with industry experience.

I have 16 years in Pfisterer already. I've been working there from 13 from 2005 to '13, rejoined in 2020.

I'm the Co-CEO, and I'm responsible for Sales and Technology within Pfisterer. Thank you.

Oops.

All right, and with this, I would like to hand over and continue through the presentation. We have here at PFISTERER developed the mission for for the team and for the management that we are striving to be the preferred partner for innovative, reliable, and mission-critical electrical connections and insulation solutions.

You see here on this picture in illustration what that means in practice. You see this fellow person who is connecting a high-voltage cables.

You see on the left here on the picture a high-voltage cable, and in the center of the picture, the colleague is fixing the mechanical connector with which this cable is being connected to another cable. PFISTERER is acting as a cable-agnostic connection supplier provider.

That means the cable that you see on the left could be provided by Company A, the cable to which this one is connected could be coming from Supplier B. In our case, it doesn't matter.

Due to our agnosticity, we can design solutions with which we connect any cable to any other connecting part. We believe this is one of the strong key parts for our growth in the coming years.

This growth is going to take place in applications such as you see on the following slide, the one that we are looking at right now. PFISTERER, as being cable-agnostic, is connecting areas where electricity is being generated.

They are illustrated on this slide here with the dark blue boxes. Electricity generation either via onshore wind farms or nuclear power plants, it could be a gas turbine, but it could also be an offshore wind farm, or it could be a solar field.

Wherever electricity is being generated, it needs to be hooked up, the generation needs to be hooked up to a transmission network. This is where our solutions come into the game.

The electricity after being generated, it needs to be transmitted. Again, this is where PFISTERER solutions find their application, be it in the case of overhead lines or in the case of underground cable systems.

After the transmission, electricity simply needs to be distributed to the individual consumer of electricity. Again, this is where insulation and connection solutions of PFISTERER can be found.

We are providing solutions to the grid, be it for connections in the air, be it for connections under the ground, or be it under the sea in subsea, be it for low-voltage, medium-voltage, or high-voltage, PFISTERER has a customer-specific solution wherever needed. In the following slide, you see our global footprint where PFISTERER, being active in 19 operational companies, is present.

If we start at the bottom left on the world map, we have facilities in Argentina and in Brazil. You see a red box in the United States, red relative to I don't know what it is, dark red or brown.

The red boxes are illustrating that it's a factory that we are running in the United States. We have our facilities in Europe, be it France, Spain, Italy, or Poland, but also factories that we are running in Germany and also in the Czech Republic.

In the Middle East, PFISTERER is present in the UAE and also in Saudi Arabia since last year. Then last, but certainly not least, also in the Asia-Pacific regions, we have facilities in China and we are also present in South Korea.

Together with our distributors' network and through our operational companies, we serve customers in more than 90 countries. The revenues we are generating in that respect, they are being split into sales regions that we report.

You see the pie chart on the top left where, in the fiscal year '25, PFISTERER was recognizing 55% of its revenues in Europe, 14% in the region of Americas. Americas is the continent of North and South America.

We have had 23% in the Middle East and India, and 8% in Asia-Pacific. On the bottom left pie chart, there is a breakdown into four product segments into which we are reporting.

Actually, they are five. HVDC is we don't have any revenues yet, therefore you don't see this mentioned here on the revenue split for the fiscal year '25.

The largest segment we are showing is HVA, high-voltage accessories, connection solutions for high-voltage applications with 40% of the revenues. Then opposite to that, there is the overhead line business segment with 23%.

Overhead lines are typically also high-voltage, from a voltage point of view, 63% of our revenues were recognized in the area of high-voltage applications. We have a medium-voltage accessories business with 13% of the revenues, and then last not least, the components business with 20%.

Components are typically seen in low-voltage applications. If we move on to the overall market view, we would like to share with you very briefly that the overall picture is characterized through an overall positive market environment and numerous trends that we believe that are supporting PFISTERER's growth path and that are describing our future opportunities for the coming years quite well.

We think it's fair to say that we are living in the age of electricity. This age of electricity simply is characterized through an overall global growth in the consumption of electricity.

There are numerous reasons. I don't want to go into too many details here.

Be it for the reason of decarbonization of electricity generation, be it for the application of data centers, and/or air conditioning inside data centers, but also in other areas, living areas or office areas, for instance. Last not least, also for the reason of energy independence, there is a global trend of an increase in the electricity share in the primary energy demand.

This is helping our business quite significantly. We are seeing that the electrical energy grid as of today that is meeting this growing demand is outdated.

It needs to be replenished and refurbished due to an overaged and therefore also partially critical functionality. This is different in different regions.

Europe is characterized through a very high demand of refurbishment needs, is the United States. We also see that due to the change in the electricity generation, the topology of the electrical net needs to be changed.

If in the past it was always there was a rather a standardized way of producing electricity and then distributing it in a standardized and normal distance to be covered from the transmission network, now this is changing due to the new type of electricity generation. The average transportation distance is growing.

At the same time, the direction of current flowing is more and more turning into a bidirectional direction, and that leads also to further investments into the electrical grid. Overall, we believe there are a number of reasons to assume that the investments into the electrical grid are going to continue to grow, even beyond $1 trillion per year in the coming decade.

If we move on now to the business data of PFISTERER, the second chapter of today's presentation, I would like to start with our quarterly view and the revenue development we have seen over the recent quarters, and at the same time also the development of our order book as the residual in between order intake and revenues. On the on the columns in the center of this slide, we see the order book development starting with quarter four '24 and then moving up to quarter four '25.

Here, we are seeing that there is a significant increase in our order book over these quarters, starting with €235 million in the last quarter of calendar year 2024, growing up to €335 million at the end of quarter four 2025. This development was already announced and shared with you in our preliminary financial data that we have shown early March.

Here you see the the precise data, how it has developed. Quarter four '25 is a stable situation in the order book relative to the quarter three '25.

Keep in mind that the order book volume of €330 million is a very comfortable order book for PFISTERER in order to accomplish also our year yearly targets for the financial and calendar year 2026. On the right side, you see the the revenue development of PFISTERER over the past quarters.

If we have seen a revenue of €98 million at the end of 2024, we have also observed a consecutive increase of this revenue for over the quarters of the calendar year 2025 from €100 million in the first quarter over €113 million revenue in quarter two and quarter three, leading to a final revenue in the last quarter of 2025 of €123 million. In between the last quarter '24 and the last quarter of '25, we have managed to grow our revenues by almost 26%.

We believe this is yeah, an accomplishment we have managed through all of the functional areas of the company. If we compare the average quarterly revenues over the past years, in 2023, this was €83 million.

In '24, we managed to bring it up to €96 million, and in '25, we managed to have an average revenue each quarter of €112.5 million. The revenue growth we have seen here relative to product segments and relative to regions can be seen on first domination level from a product segment point of view, in particular through a strong increase in HV and OHL.

Remember, both are high-voltage applications. From a regional point of view, we have seen an outstanding development in Europe and even more in the Middle East and India region.

This being said, I would like to move on to the next slide where we are continuing to illustrate the quarterly development on a group level. You see on the left, or let's say the center graph, column-wise, the gross margin we have seen over the past five quarters from quarter four '24 to quarter four '25.

The columns in the right on the right half of this slide are illustrating our adjusted EBITDA development over these same quarters. We have seen that in the quarter four, our gross margin has declined relative to the previous quarters.

This is, amongst other reasons, mostly caused by our temporary ramp-up costs we have seen in our factory in North America and even more in the Czech factory where we had to relocate our equipment from the fire incident in Wunsiedel at the end of '24 into the new facility—not the new facility, into the existing facility in Czech in the course of '25. At the end of '25, we have meanwhile increased our staff in the facility in Czech by more than 50%.

We are now in this calendar year finally seeing the revenue growth being caused by these people. In '25, they were more or less a cost burden, which we see pushing our gross margin in the last quarter a little bit down.

Excluding these ramp-up costs, the gross margin would have been exceeding 40%. The good news is, and we're going to be coming to this, ramping up in Kadaň is over and now we are going to harvest.

The margins in our order book We've seen the order book development on the previous page. This we can share with you are quite positive.

With this being said, we are also quite positive when it comes to our gross margin outlook for the coming quarters. On the right side on this slide, you see our adjusted EBITDA.

Despite the gross margin in in quarter four being 2% lower than in the previous margin, we have seen a very good volume development in quarter four with €123 million of revenue, and the combination of gross margin and revenue then is a good indication on our EBITDA that you see is also very satisfactory in quarter four with the €19 million, and there you see over the course of the year '25, the EBITDA has been in the area of €20 million each quarter: one quarter €1 million more, another quarter €1 million less. Again, we are very happy with this development, and this is leading to an overall again very satisfactory development on EBITDA for the course of the year, as 17.8%.

Now, if we look into the individual reporting regions, we see the breakdown on the slide in front of you. If we start with the Americas and the order intake, these are the columns in the center of this slide.

On the right side of this slide, you see the order book. The order intake, we have seen in the Americas region a nice development, plus 24%.

This needs to be seen also in conjunction with the with the country split in the Americas. We have about 1/3 of the business in Argentina, about 2/3 of the business is in the United States.

Other countries in the Americas at this point are only contributing to a lower extent. As you are aware of the situation in Argentina, this hasn't been the most friendly business environment recently.

What you see here as a positive development on the order intake as well as on the order book situation is coming from HVA demand in the United States as well as from the positive components business development in the United States. This is also an area where we are investing significant money in order to increase our production capabilities there.

US Americas development from a tendency point of view satisfactory on our side. We continue to Europe and Africa, which is the largest sales region of PFISTERER.

We have seen an order intake growth of 21%, and even more, we've seen an order book increase of 42%. From an absolute point of view, these are number one or number two of the regional development here in in the PFISTERER Group.

Europe and Africa has seen this positive development, in particular in the business segments in the product segments of HVA and components. The highest growth on a relative point of view, be it on order intake as well as on the order book, we have seen in the last year in the region of the Middle East and India.

The order intake grew by 67% on a year-over-year basis, and our order book in conjunction with this went up by 71%. On a product level point of view, this is mostly driven by OHL and HVA, meaning the high-voltage business.

As we have shared with you earlier, we are overall we are not against high voltages, because in our experience, high voltages are also leading to higher margins, and this is also the case in the region of Middle East and India amongst others also there. Finally, the region of Asia-Pacific, as all the other regions, has also seen an increase in the order book—or I'm sorry, in the order intake.

However, Asia-Pacific had seen a slight decrease in the order book. We can say that four of our sales regions, all four of our sales regions have seen a positive development on the order intake, and three out of four have seen a growth in the order book.

Now moving on to the to cutting the slice in our product segments, a few indications I have already given when I was referring to the sales regions, but now the same view than before, but from a point of view of the product segments. In the center of this slide, you see the order intake in our product segments.

On the right side, you see the development of the order book within the segments. If we start with the high-voltage accessories, we have seen an order intake growth of 28%.

This yeah, is strongly driven by the European sales regions, but also by the Middle East and the Americas. This is carried by three out of four regions, which gives us quite some resilience, we believe also for the future period.

We have seen also that the order book went up by 42%, meaning our capacities in our production environment weren't able to deal with all of this growth on the order intake, and this is why we keep on investing and expanding our production facilities, and we're going to be touching that point also later in the presentation. On the medium-voltage arena, we have seen an order intake growth of 26%, again also very good, and we have seen a similar development on the order book.

On the components business, which in particular is characterized by our contact technology, the bolted contact technology You have seen an example of a high-voltage application earlier on the picture in the beginning of the presentation where we touched our mission very briefly. The same principle applies also for low-voltage situations, and there we have seen a a good development on the order intake going up by 16%, and the order book respectively going up by 17%.

Then we come to the final product segment here on the slide, which is our overhead line business. There, we have seen an intake increase of 48%, from a relative point of view, the highest increase is in overhead lines.

We have seen that the order book grew even higher, 56%, and this is primarily characterized by a tremendous development in the Middle Eastern and Indian region, and we will be talking about that in a second. Let's move on to the financial data where all of this is ending into or moving leading to.

Here we would like to start with the quarter four development the sorry, the fiscal year. This is the fiscal year.

We have seen in the fiscal year a significant growth across all key metrics. If we start with the order intake, the order intake in the fiscal year '25 being €548.6 million were showing an increase of 29.6% relative to the previous year.

If we continue to the order book, we were touching also before in the breakdown, the order book at the end of the year was showing €334.4 million, which in itself was an increase of 42% relative to the order book that we brought with us into the calendar year. PFISTERER managed to turn the order intake into revenues at an increased level of another plus 17.4%, the revenue showing €449.9 million.

We are proud to report that the increase in the revenue, 17%, turned into an increase of our gross result of plus 20.2%, overproportional growth. We see the gross margin went up by 1% from 39.6% to 40.6%.

We see that the EBITDA went up by 26.8%, meaning €76 million. The adjusted EBITDA went up even by 20 went up even to €80 million, 24%, and our EBIT grew to €62 million, being almost 30% increase.

We have maintained a stable R&D ratio in the area of 5.7%, previous year was 5.6%. The key figure that has shown the most impressive development, I believe, is to be recognized as the result of the period.

We have managed to achieve €51.7 million of net profit as a result for the period, which is an increase of 53%. Our operating cash flow with 47.5 went up, and the adjusted operating cash flow, this is adjusted by the virtual stock option program, we are, as adjusting elements that are linked strictly linked to our successful initial public offering in the course of '25.

The adjusted operating cash flow went up by an impressive 36%, leading to €58 million. All of this was accomplished with, I believe, quite underproportional increase of our staff.

We grew our teams by 11% in the course of the year. Now, if we take a look at quarter four, I was a little bit too quick earlier.

We see that we again, on a year-over-year comparison, we managed to grow our order intake by 17% to €117 million. Order book, we covered already.

The revenue with €123 million in quarter four '25 was up by 26% relative to the year-over-year comparison of quarter four '24. We see that the gross results went up as well by approximately 15%, our EBITDA went up by 17%, the result of the period went up by 30% to a strong €16.5 million, and our operating cash flow has also seen an impressive development in quarter four as we have managed to work with our suppliers and also we have seen some relevant improvements on our inventory situation until the end of the year.

We have, finally, looking at the net debt situation in the course of the year, we have improved this by far amongst other reasons, also due to the IPO, obviously. We managed to turn a net debt of 63 into a net liquidity of plus €19 million, being an improvement of more than €80 million.

The we we touched the net profit development earlier, and we would like to translate our net profit development on this slide here also in the earnings per share and illustrating also the yearly development starting with the year '23. At in the course of '25, obviously, the number of shares due to the capital increase in conjunction with the IPO of May 2025 increased.

Despite the fact that the number of shares increased in the course of '25, we still managed to to bring the earnings per share up significantly. In 2023, we had an earnings per share of €1.73.

In '24, at the same number of shares, this was €2.21. In '25, calculating with the number of shares of 16.8 million we have meanwhile stocks of 18.0 shares, but the calculation methods over the course of the year leads us to 16.8 million not euros, shares.

With the 16.8 million shares, we are having an earnings per share as per IFRS accounting standards of €3.04. We managed, despite the fact that the number of shares went up in the course of the years, to improve our earnings per share by almost 76%.

With this, I would like to close for the time being, at least, talking about the past '25 and would like to share a few information on the future, starting with one slide covering 2026. We have been informing you in recent quarterly reports, also in this web view here, that due to this unfortunate fire incident, we have seen additional burdens and efforts, in particular on the gross margin.

Some of this were being compensated in the course of the year by insurance payments, but they are to be found in the other incomes and not in the gross profit and gross margin. We are we are proud to share with you that this phase finally is over.

The transition and the moving of the production, the hiring of staff, the training, the qualification of the equipment, the training of our employees is meanwhile successfully finished, and the transition of the production is successfully completed. We have reached the production levels of the pre-fire situation, and we believe there is a lot of things in place that lets us assume that we will be exceeding former levels of production in the insulator production in Kadaň in the near future.

We have furthermore on this on the facility in Kadaň, we have in the course of last year, we have acquired another real estate premises which puts us in the position to continue to expand our production footprint in Kadaň. We are in continued and quite positive discussions with another real estate which is again on the same in the same industrial park, which will let us grow even beyond the expansion possibilities we have secured already last year.

Maybe one further detail here, as I touched the insurance elements earlier: As I said, we have meanwhile passed the the ramping-up, we are not seeing any additional cost burden in Kadaň. The opposite is the case.

We are seeing cost benefits relative to the previous situation where we used to be producing these products in Germany. Nevertheless, as the insurance compensation is always running a little bit behind the field, we can share with you that we will be seeing additional insurance compensations in quarter two and in quarter three of this year, and this will be well, this will be, of course, seen then also in the EBITDA development.

Moving our view into the year '27, we want to come back to our qualification center we are building here in Winterbach in Germany in which we are going to test Well, first of all, to qualify and also to test in end-of-line production tests our upcoming production of accessories for the HVDC business. On the top right, you see the illustration what the laboratory is going to be looking alike.

On the bottom, you see a picture from early March where the skeleton of this impressive 32 m high building can be envisaged. You need to look also at the other buildings on this picture to realize the magnitude of the laboratory we are building there.

On March 23, we celebrated the topping-out ceremony. The laboratory, the qualification center is going to be operational in the course of '27, and this is also the time when we are expecting to see orders and we are expecting to see in the course of '27 the first revenues in HVDC.

Now, if we look even beyond '27 and look to the midterm period, which is reaching meanwhile up to the year 2030, we have yeah, put in the in the columns here our view on the revenue development of PFISTERER up to the midterm guidance period, which is 2030. This is the columns in the center of the slide.

On the right, we see the columns illustrating our adjusted EBITDA development until the end of the decade, 2030, as per our midterm view on things. PFISTERER is convinced that we will continue to see revenue growth.

If we manage to grow from 288 in '23 to 449.9 in '25, we are estimating that we will see a continued growth above 12%, possibly up to 17% in the course of 2026, leading to revenues in the area of 500 to €525 million. We have previously shared with you that we believe that the market growth is characterized by a CAGR of 11.6%.

PFISTERER has shown and demonstrated that it's capable of outgrowing these 11.6%, and we also believe that we will continue to do so until the end of the decade, reaching revenues at PFISTERER in between 800 and €900 million. The midpoint, 850, would be represented by a CAGR of 13.6%.

In the right illustration, you see the EBITDA development, adjusted EBITDA development of PFISTERER. If in '24 the column is is starting with '24, there is a mistake.

You see two fiscal year '24. The left one is should be '23.

Sorry for that. If we had an EBITDA margin of 15.6% in '23, we have grown this by 1% roughly in '24, we grew another percent roughly in '25, and we believe there is a there are a lot of reasons to assume that we will continue to see a positive EBITDA development until the end of the decade, 2030.

We have estimated we have given the outlook that we will see an EBITDA development Adjusted EBITDA and EBITDA by then will be the same as the adjustment is only due to IPO-related elements, which will not be with us any longer by 2030. We assume the EBITDA margin at the end of the decade to be in the highest teen.

This is what we said earlier. Meanwhile, we dare to say it will be in between the highest teen and low 20 margin corridor.

In order to get there, PFISTERER needs a continued to invest into business development and to invest into expansion of facilities, production facilities, qualification centers, also office areas in order to offer attractive work environments for our highly sophisticated team members. For this reason, we have concluded that we are going to invest around €270 million in the time span from '26 until 2030, which is a slight increase relative to the previously announced investment program in between '25 and '29.

If you have further questions, we have another 20 minutes in this call. I'm at the end with my presentation.

If your questions go beyond this call, there will be further possibilities in reaching us. We are at the Metzler Small Cap Days tomorrow in Frankfurt, next week in Munich at the Munich Capital Market Conference.

We are available for the next web call on May 19, and we will be with Berenberg in the United States on May 20th. We have our Annual General Meeting on the 11th of June, and Q2, Q3 Equity Forum in Frankfurt in November will be for further possibilities to exchange our opinions on PFISTERER.

Thank you very much at this moment, and I would like to move on to any possible questions that either I or any of my colleagues are going to answer.

Hello. Thanks very much for taking my question.

I have three, if I may. The first one, could you just give a little bit more color what volume price assumption you have baked into your '26 sales guidance and also your midterm targets?

That's my first question. Then the second question, again, on your midterm target and highly appreciate that you have updated these: Looking at the midpoint of the revenue range of 850 million, what are expectations or what are the contributions from high-voltage DC reflected there?

Then the last one, given the stronger than anticipated growth, you mentioned that you have increased your CapEx guidance as well. How should we think about the timeline of the CapEx spend, and what proportion of the increase is related to high-voltage DC?

Many thanks.

Hallo, Frau Steilen. Guten Morgen.

Good morning, Ms. Steilen.

Johannes Linden. I will give my best to answer your questions.

First, you were asking about the volume price assumption for '26, but also in the midterm guidance. Talking about the price assumption, as in the past, we have conducted or concluded in our budgets with zero price increase, what we see as positive development is coming from things that have nothing to do with price increases.

On the profitability level, EBITDA, we have also explained earlier that we are of the opinion that PFISTERER has on the growth trajectory that we are following, that we have substantial opportunities in operating leverage, be it on sales or admin cost, not on R&D as we are intending to keep the 5.7%, let's say in between 5.5% and 6%, depending on the year, of R&D ratio. We think that we over the course of the years using the possibilities of digitalization and also AI inside our company, we think that we can more and more automate white-collar activities, and through this we can see operating leverage in this area, and then helping also our EBITDA development.

Thanks very much. Just to clarify, neither in your '26 guidance nor your midterm targets you have reflected any price increases?

No, we never increase prices in budgets.

You kept your very conservative approach. Many thanks.

Yeah. Yes.

The second question on the midpoint revenue in the course of the decade or 2030, you were referring about. The revenue share in HVDC in 2030 will be below 10%.

It will be going up quite steep at some point, but that point is not within the time period until 2030.

Then

third, the CapEx: You were asking how the CapEx spreads over the 5 years?

Yeah.

We have seen in 2025, we were originally forecasting an investment of €50 million. It ended up being 38.

We

have been a little bit late or

we are a little bit late in some of these spendings. I'm the CFO, I'm not too worried about being late on spending money as long as the progress in the projects is given, and that is the case.

This leads to the fact that in the course of this year, we will see an increase in the investment. We have originally or last year, we were estimating also for this year a CapEx of 50 million, that is going to be 65 in the course of calendar year 2026.

As we talk, this is our yeah, our planning. We will then see investments also '27, '28 to be in the area of the investment of '26, and then the CapEx program will be seeing lower numbers in '29 and '30.

Perfect. Thanks very much.

That's very clear. I'll step back into the line.

Maybe also, Frau Steilen, maybe I can pick the point up, because CapEx is of course is then leading to depreciation at some moment in time, and if that is also of interest for the one or the other, we have seen a depreciation ratio in the last year of low 3%, I believe 3.1%, if I'm not mistaken, is the precise number. We will see the depreciation portion going up, obviously, as we are investing.

It will go up to high 3%, maybe very low 4%, and then it will be going down again to the lower 3%. We believe that again, due to the growth trajectory that we are seeing, this will not be harming at all, or not to a significant extent, will not be harming our EBIT or our net profit, whereas the growth, we believe, will be helping to develop EBIT and net profit also positively in the coming years.

Okay. Hello together.

Thank you for taking my questions. The first Can I ask a question and waiting for the reply and then ask another question?

Because I had four questions, and yeah, it would be better for me to do it like that. The first question would be: The insurance proceeds in the last year amounted at around €6.3 million, and you already said in this year, you expect more insurance proceeds.

Could you just provide more details on this, how high are these expected for this year?

We do have an expectation, of course, because we know which cost we had, but it's not confirmed by the insurance yet, it would be a little bit risky to be too precise in my answer. Maybe I can say this: It's going to be more than a six-digit number, and it's going to be less than an eight-digit number.

Okay. So

We think it will be As there are two insurance policies are relevant. One is relative to the tangible assets that will be destroyed.

We believe we will see that in the second quarter. Then there's the second policy as per which additional cost, the lost profit, in Germany, it's called Betriebsunterbrechung, the interruption of business is being covered.

I believe that may be a good translation. This will take longer as the insurance takes longer to verify all of this back and forth.

That will be a second installment, you could call it. Not an installment, really, but this second policy should be paid out in the quarter three.

Okay. It would be fair to assume, as you said, higher than a six-digit, lower than an eight-digit number, that it also could be at the level of the last year's payment?

You are trying I know I understand you're asking the question,

but

another 6 million would be a high number, yeah? If it would be that much, we would be very happy.

Okay. That's enough for me.

Thank you. Another question is referring to the EBITDA margin going down in the last quarter.

You already said it's also due to the ramp-up cost in US and Kadaň, and they affected the MBA and the com and also the MBA segment went down in EBITDA margin and the com segment, yes. Could you just elaborate a little bit more how high were the ramp-up costs for USA and Kadaň?

Yes, that would be the question.

The additional burden we had in the ramp-up of quarter four was at least €2 million. This being said, bringing the gross margin would have been above 40% without any of this, yeah?

The Kadaň site, as I mentioned earlier, this is fully operational. Not the site, but the relocated equipment that was added to Kadaň.

This is not going to continue. In the US, we will continue to see an investment program for the years to come.

The components business that we are conducting where we are increasing production in the United States, this is strongly driven by the artificial intelligence development in the US. The components we are producing, they are going into applications on customer side which find their way into data centers at some moment.

Not all of them, but a significant portion. We think we are well advised to assume that this will continue to boost for some more years.

As we all know, the investment announcements on data centers have been given, but the reality of these investments still needs to happen, yeah? There is a lot of tangible activities still ahead of us, and we will be supplying components into these investments, and we believe this is good news.

If you look to these connectors, for instance, that we are producing in the US, we are also producing those in Germany. If you would be comparing the production output of PFISTERER quarter one '24 relative to quarter four '25, in the span of these 2 years, we have increased our production output on these connectors by more than 50%.

53% increase we have seen in these specific connectors, and this is due to the investments in the US, but also in Germany. We believe it's good business that we continue to grab.

Speaking of the dynamic of international revenues, how do you look at the situation now in the Middle East? Do you see already any effects out of the political situation now?

I can touch the point, and I will also hand over to Konstantin, my colleague. He will also add to answer in the question as, from the functional split, of course, he is talking with the customers and he's closer to the market.

If we look to March, we have seen no interference, basically, as sea transportation to the port where we are shipping to, which is in the Red Sea and in Oman, they have from a shipping capability point of view not being significantly harmed. They are open.

What we do see, and we continuously work on creating revenues in this region, we have seen an order book of more than 100 million in the Middle East, yeah? There is a lot of revenue to come.

We also see that the transportation is possible. At the same time, though, it shouldn't be or it should also be mentioned that transportation costs went up, yeah?

There is a war surcharge. The war surcharge that the shipping companies are asking for meanwhile is in practical terms is doubling the cost of transportation to the Middle East.

This is an element that we do see. We have fantastic margins on the Middle Eastern business, it continues to be very attractive for us.

We do see that there is an increase on the transportation due to the war surcharges. Of course, now we are intending to pick up talks with our customers how to deal with these surcharges.

With this, maybe, Konstantin, you want to add?

Yes, I would just add four topics. What we are seeing and also at the moment, we are signing order intake, we also had two big orders in the one in the Emirates itself, one in Oman.

That means business is keeping on. They are executing on their projects.

This is what we definitely see. The activities with the customers are going on, with the utilities down there, with the EEPCs, which are executing the projects.

Our offices are opens in Dubai, and are still open in Dubai, and are opened in Saudi Arabia. For sure, we are, I would say, looking for that everybody is working after, I would say, good situations and safe situations, and what we also can provide because it's not only bringing the products to Middle East, it's also the installation.

Team is doing the installations locally in those countries. For sure, now everybody, even on those reasons what we are seeing from the international impact, the focus is again on, I would say, electrical infrastructure.

You see, especially in these countries, and this is really, pushing the business in the right direction. Especially also for the I would say, renewable energies, which also have to be connected to the network.

Okay.

Thank you. Okay.

Thank you very much. Just one last question is referring to the tax development.

In the fourth quarter, you've shown tax revenues or positive tax revenues. Can you just explain what happened there?

That's we have a patent on this now. From now on, we will continue to see that.

No, I'm joking. I'm joking.

We had the situation that in the fourth quarter in one of the German companies, we even managed to show a negative result, meaning we had we turned out to have a tax credit out of this. Second to that, we have seen a very good development from a business proportion in Switzerland, yeah?

The Swiss tax is 13%, Germany is 29%, this was then helping us in the overall tax situation. Maybe a third element: We were able to build latente Steuern, I don't know what that means in English,

deferred

taxes from our ramping-up in the United States. The building these deferred tax assets led to a tax profit, and this is basically what you see then in quarter four.

This is, of course, a one-off. This is not going to continue.

I shouldn't be making jokes at that point, yeah? Of course, we will continue to have a tax burden in the future.

Thank you very much.

Ladies and gentlemen, we are happy to have spent the last 60 minutes with you. We are, once again, showing in '25 that we are able to grow and we can grow profitably.

We have, in the course of '25, achieved a number of important strategic milestones, be it for the acquisition of our subsea business, be it for our initial public offering, and be it for the tremendous order intake we have seen, which is leading to a very comfortable order book situation. We think that the megatrends of electrification, for various reasons, will continue to support our positive development, and with this, we are looking positive to the future and count on your support also for the coming periods.

Thank you.