Thank you, Michael. Good afternoon, ladies and gentlemen, and a warm welcome to our earnings call for the fiscal year '25 from my end as well.

On the call with me today are our CEO, Jens Birgersson, and our CFO, Thomas Reisten. They will walk you through today's presentation followed by a Q&A session.

All relevant documents have been published this morning on our website in the Investor Relations section, and there will be a replay available. Allow me also to point out to our safe harbor statement, which will be found at the end of our slide deck.

With that, I will now hand over to our CEO, Jens. Please go ahead.

Thank you. Good afternoon, ladies and gentlemen.

Thank you for spending time with us here today, a lot of activity in the market and around the world, and now today we are mostly talking about 2025, but let's wrap that up and do it properly today. Reflecting on 2025, we had a very difficult year in the chemical industry.

I think in 20 years, we haven't had this long period of suppressed market conditions. We saw it worsen during the year.

It was quite stable in Q1 and Q2, and then the volumes and the top line went further south and landed on a Q4 that was on a quite low level. That said, when you look at us and compare to other industry players, not least the principals, the ones manufacturing, the year proved again that we sit in a very good place in the market, in the value chain, and we have a very resilient business model.

I'll come back to that soon. I was only with the company 4 months.

I did start to read up during the summer, but in those months, we took a couple of important decisions. One was to really going for being a full-line distributor and not do the hard split, to end that discussion.

We removed the two division management layers and lifted the business unit straight up. We formed the new EC.

I'll come back to that soon, but basically the people running the P&Ls with a couple of functions, we formed the new Executive Committee team, and I'm happy with the progress. We have recruited everyone, and there's only one to start.

Let me walk you through the main numbers. If you start in the top left, we came in on €15 billion top line, 4 4% down versus last year.

With a trend, maybe not the percentage, in Q4 we were down just above organic 5%, but versus the beginning Q1 and Q2, that was quite a lot lower. On the operating gross profit, actually the gross profit margin improved with 0.5 percentage point in both businesses, and we managed to keep it relatively stable.

Minus 2% is quite pleasing considering the market conditions and that it was hard to pass on prices. There are segments that don't follow this, maybe energy and pharma, but in all the other segments, we have a 3-year decline of pricing on the principal side.

It's hard for us to increase the prices, and yet we manage to maintain the gross profit level. Then what I'm not so happy with is not too bad, but if you then look at the decline on the bottom line, and you could take either one of those measures, you see then a multiplier of 4x or even 6x bigger decline on the bottom line.

Still quite a positive result. We didn't go in a losses or anything like that, but I'm not happy with that the fixed costs loaded us down quite as much, and that's something we need to work on.

Going to the lowest row here on the left, the cash flow, good collection, good inventory management, and actually the free cash flow increased with 5%, and that played a role in the dividend proposal that we put forward, that we have added back noncash one-off, Thomas will explain the details for that, and the dividend is 10% lower, which reflects how we see the market, but yet we keep it on an acceptable level because with that cash flow, we can afford it, and want to be a stock that is not too drastic in one step on the dividend. We can go to the next slide.

The priorities that were set when I came in were these ones: sales, really stop the splitting internal focus, go out and sell, and at the moment, of course, that has also turn in the light of what's happening in the Middle East. We are navigating the current turbulence, and that means all hands are on deck, raising prices, managing supplies and adapting to the new situation.

Then we have the clarity and simplification. I'll come back to that on next page, but we really try to make it simpler to be a leader in this group, and that more focus on the business and less on bureaucracy.

I'll come back to that also. Then on execution, we have started to move, reducing the number of initiatives and put more force behind them, increasing the follow-up, and generally drive sound management practice, and rather go focused with a combination than wide and shallow all over in the organization.

Let me briefly walk you through that. On the next slide, I give some examples.

On the sales side, we can see tangible results in terms of more days in the field, a reduced churn of customers, and also quite a lot of dormant small and medium accounts that didn't buy that we have managed to reactivate. That's really good to see.

On the clarity and simplification, when I come to the EC chart, we have done the structural change. We have also changed the Management Board, it's only me and Thomas now, and both Thomas and I are seeing our main responsibility to be in the Executive Committee.

One example would be to get an approval. If you had certain approvals in the old hierarchy, if you traced it straight through, some of those require 26 inputs and steps, and today we try to keep that to 3.

That doesn't mean we want to make sloppy decisions, we want to make better decisions, but we involve the people that really have a stake in the decision, and we make them more accountable for it, and of course, that increases our agility, and we have a much bigger probability of taking the right decision at the right time than being on the back foot all the time and being too slow. On the executions, I see some savings.

Yes, headcount is down. We have made some progress, and we are working hard here in Germany.

Germany is not a quick fix, but I'm happy with the progress we are making. I think the organization have realized that we need to change something and become leaner, and we are making progress, but if I had the wish, I would have liked that we could put that behind us even faster, but at least we are making progress, and we are ahead of what I expected.

The basic logic for smaller overhead and a leaner center of the business doesn't mean that we want to let the whole business go into anarchy. We want to have small, powerful functions, but we don't want to subscribe to this argument that this business is complex.

This business is quite simple. What is it we do?

What's the core value stream? That is to buy product, to sell it, to deliver it through the network efficiently, and collect the cash.

What you see in that top line to bottom line is that we have too much around that core function. The core value-added flow of the business also need to be optimized, but we simply have too much that have been added around it, and you see it in the numbers when the volumes on the top line go down, and you have also seen it previously when the business is growing, that you don't have the full leverage on the bottom line.

We are working very hard on setting that right, and then when we move into this year, we're going to work more and more and more out in the businesses. It's not that we are not working out in the businesses, we have 25 streams where we are working on these issues that goes across the company.

It's not just a German initiative, this, but we have started and we are further ahead at the center. If you then look at the new Executive Committee, if you go to the bottom row there, we have the three regional P&Ls, the Essentials business, we merged North America and South America under one President, and then we have the global verticals, the businesses that requires domain competence, they are below there.

It should also be said that our biggest vertical is the Nutrition. Our second biggest vertical is actually Oil & Gas, but it's a regional one, it's not represented here, but it's a very substantial and big business that is in North America into the oil and gas market.

We are very proud and happy about that one at this stage, but it's not visible here because it's not a global vertical that we are running. Then on the functions, hinting towards the strategy what we want to do, a COO to optimize the supply chain network, the 600-plus warehouses, to make that really, really efficient and flexible and reliable, so that's one team.

That's the main job of the COO, and to drive productivity through that and demonstrate that we can deliver scale effects. Then you have the central HR, and we have a lot of good people, and we have been a little bit thin on that.

We have a smaller organization now, but we have increasing the competence how we manage the HR side of things. Then we have the Chief Commercial Officer, and that basically from the flow of product to the customer, here to build the commercial machine would be a big theme going forward.

We are pretty good to react quickly, but there is a lot of improvements that can be done in how we go to the market and how the sales force works and how we link that up with customer service from the COO. That is the theme: pricing approach, etc., structures to all that, contract management, we need to do quite a bit on that.

Then we have the CIO, very happy that we onboarded Michael Sonntheimer. He has been in 4, 5 industries, but very importantly, he has been the CIO for a company that moves millions and millions of tonnes of goods.

I think that's a quite a big change from where we were. We did a lot of investment into digital and IT, but we didn't put the fact in front that we are moving tonnes.

Now we have a CIO with experience from moving tonnes, logistics, and obviously, if you link that up with the supply chain network, with the selling in a business with a transaction every second, every second second, digitalization, automation, AI is super key to get productivity. I'm happy with that.

We are just now missing the COO to join on 1st of April. He has already been in some meetings, but to get him really on board, this was an important milestone for me moving forward.

Then the last slide for me before I hand over to Thomas, I leave that cost reduction to him, but clear is that we need now to really go from as much gross saving to net savings, and we need to put a substantial number through the P&L this year. I leave the details to Thomas, but it's really important that we work with it because I'm not happy with the link of the whole cost mass, the fixed cost mass around the core of the business.

Then on the right-hand side, immediate opportunities. With the dividend and our financing approach and cash flow, we have freedom.

I'm sure you're going to ask questions about that later, but we have freedom to do M&A, and it's not like we enter this year without wanting to do M&A, but we hope we can pick up some good targets with lower multiples, I don't think the cash going to be the limit to what we do, it's more going to be an issue of finding good targets that fit into our strategy. The two acquisitions that we closed AirChem now 28th of February, we closed Chemtech already December, they are looking good so far, we're happy with those, but we need more of that.

Then finally on navigating in the volatile environment, just want to emphasize that we are incredibly fortunate to not be a big principal with a heavy asset manufacturing plant. We are light, and we have a lot of experience of navigating these turbulences.

At the moment, we have all hands on deck to get the pricing right and make sure we don't get caught between a rock and a hard place. Then obviously, a big role we have is with all these disturbances on transportation to work really, really hard to keep our customers whole so that they get product from us.

With that, I hand over to Thomas, and during the Q&A, I come back a little bit on the Iran impacts if you ask, but for now we hand over to Thomas.

Thanks a lot, Jens, and from my side as well, good afternoon to all of you. On this slide 8, I now dive a bit deeper into the financial performance of Brenntag in 2025.

Jens had already outlined that our results reflect a persistently challenging market environment. There's ongoing economic volatility, weakened market demand, and muted customer activity.

Operating gross profit amounted to €3.8 billion in 2025. Our operating gross profit margin reached 25.3%, which is an improvement of 0.5 percentage points versus the prior year.

Despite the market headwinds, we expanded our gross profit margin. That demonstrates the robustness of our business model and our strong commercial discipline in managing margins in a subdued economic setting.

Operating EBITA came in at €1,288 million, which is down 8.6% year-on-year on a constant currency basis, and operating EBITA stood at €929 million, which is a decline of 12.6% versus the prior year as well on a constant currency basis. The declines in earnings do primarily reflect the ongoing challenges in the chemical sector, and that includes the weak volume development and the muted pricing environment throughout the year.

The developments were partially offset by the impacts from our cost containment program, and I'll talk a bit more in to the details later on that. Moving on to the building blocks of our bottom-line results, if I start below operating EBITA, the net expenses from special items totaled €106 million, compared with €111 million in the prior year.

2025 saw a notable increase in noncash expenses, further weighing on our bottom line. One of that was the amortization of intangible assets, which rose to €205 million, that's an increase of €130 million versus 2024.

Also, this reflects impairment losses on goodwill in Brenntag Essentials Latin America of €83 million in Q2 2025 and in Brenntag Essentials APAC of €59 million in Q4 2025. This is driven by reduced earnings expectations in these respective regions.

Reflecting these one-time noncash effects, profit after tax attributable to Brenntag's shareholders amounted to €265 million, a decline of 52.3% on a constant currency basis compared with the prior year. Notwithstanding these developments, we have delivered a strong free cash flow of €941 million in 2025.

This was supported by substantial cash inflows from the release of working capital and lower CapEx. Our ability to generate strong free cash flow remains a core pillar of Brenntag's business model and is a key contributor to the company's resilience, particularly in economically volatile times.

Let me now turn to page 9, where I'm going to review our Q4 2025 sequential performance a bit more. As in prior years, the fourth quarter is impacted by fewer working days and typical seasonality.

Customer activity usually slowing down towards the holiday period. Beyond this seasonal pattern, Q4 was notably weaker.

It was driven by a couple of factors compared with the third quarter 2025. First and most importantly, GP impacted by muted demand, which was particularly in December, while ASP and gross profit per tonne remained basically flat.

OpEx reflects significant progress on cost-out efforts. However, the savings were actually compensated by several one-time effects in Q4.

Amongst those, the buildup of some provisions, and especially environmental provisions, an impairment on receivables, and higher insurance costs, and in the end as well, a portfolio effect from the acquired entities. On the next slide, I'm taking a closer look at our divisional performance.

Operating gross profit for Brenntag Essentials amounted to €2,733 million in 2025, which is a decline of 1.2% year-on-year on constant currency basis. With the exception of Latin America, which benefited from acquisition-related growth, all regions have recorded negative volume development compared to the previous year.

Reflecting these volume trends, operating gross profit decreased across all regions except Latin America. The key drivers of this development were weak end-market demand, muted consumer sentiment, and lastly, subdued industrial production in many of our core industries.

In addition, competition from Chinese products, particularly in EMEA and LATAM, continued to weigh on pricing. Despite this fragile macro environment, we expanded our operating gross profit margin from 25.9% in '24 to 26.4% in 2025, which is underscoring the resilience of the Brenntag Essentials business model.

We now turn the focus to Brenntag Specialties. We've generated €1,098 million in operating gross profit in 2025, which is a decrease of 3.6% year-on-year, as well on a constant currency basis.

Here, the weak macroeconomic backdrop significantly affects our results with lower volumes across both Life Science and Material Science. Despite these demand headwinds, our sales teams effectively managed pricing and margins, which was helping to maintain solid commercial performance.

Now looking at the gross profit trends across the business units, Nutrition delivered a positive development in EMEA, while the Americas remained under pressure due to the lower demand for base ingredients in North America. Beauty & Care has recorded a decline in gross profit, which was mainly driven by intensified competition in the Americas and APAC.

Pharma did post a slight gross profit decline, and Material Science saw gross profit decreases due to a lower market sentiment across all of the subindustries. Amid these challenges, we have expanded our operating gross profit margin from 22.4% in 2024 to 22.9% in 2025.

Again, this is a clear reflection of our commercial strength and pricing discipline. Now looking at page 11, I'd like to elaborate on our cost-out program.

In 2025, we generated €165 million in gross savings compared to the 2023 baseline. Exceeded our savings target for the year and delivered quite a strong level of underlying savings, as indicated during our earning calls throughout the year.

Please note that all savings are measured against the 2023 baseline. In Q4 2025, we generated €54 million in savings, and overall, the trajectory of the program has been highly encouraging, and we remain focused on identifying further levers to manage and optimize our cost space.

Additional positive signals are emerging as well. When we look at our personnel cost base, it is trending below prior-year levels in early 2026 already.

All together, these developments underline that cost discipline remains a key priority for us, and it further reinforces Brenntag's ability and potential to execute effective self-help measures in a challenging operating environment. Looking ahead now, we will conclude the current cost-out program, which is based on a 2023 baseline, and we will recalibrate the baseline for our next cost-out phase and towards basically measuring our savings against the 2025 operating expenses.

This new approach ensures much greater accountability and comparability throughout the year and follows the rationale of clarity and simplification that we've introduced already with the third quarter results in 2025. On that new baseline, we are now targeting cost savings of €200 to €250 million by 2027.

Again, let me emphasize that's against the new baseline of 2025. Now turning to slide 12, I'd like to walk you through the development of our operating EBITA in 2025.

To compare that to 2024, operating EBITA was shaped by the following effects: Firstly, the FX translation effects reduced our operating EBITA by €38 million. Acquisitions have contributed €23 million, and organically, operating EBITA declined by €158 million year-on-year.

These developments reflect the market dynamics that we have outlined earlier: weaker volumes across many of our end markets, pricing pressure, particularly in industrial chemicals, and it's a backdrop of muted consumer confidence and subdued industrial activity. As already underlined, our cost-out measures helped to partly mitigate these impacts.

On slide 12, I would like to elaborate on our dividend proposal for 2025. The dividend is a cornerstone of our capital allocation framework.

Our ambition is to provide reliable dividends across the economic cycle. At the same time, we have to take into account the current economic environment, the market backdrop, and our earnings development.

In 2025, profit after tax was significantly impacted by several one-off effects that weighed on our bottom line. Most importantly, the impairments in Brenntag Essentials in APAC and in Latin America.

Furthermore, we had expenses relating to the impairment of deferred tax assets and other special items which were reducing our earnings. All together, these one-off effects amounted to €248 million.

As a result of that, profit after tax for 2025 stands at €265 million. However, this figure does not reflect the underlying earnings capacity of the company, and therefore, it's not an adequate basis for our dividend proposal.

For this reason, we are adjusting the basis for our dividend for the one-time impacts that I have just mentioned. If you exclude these one-off impacts, we arrive at earnings per share of €3.55.

In developing our proposal, we also considered our strong dividend track record. Having consistently paid meaningful dividends even in challenging environments, whilst balancing the current economic reality.

Based on these considerations, we propose a dividend of €1.90 per share. Very important overall, this proposal reflects a balanced approach of safeguarding financial stability whilst maintaining a clear commitment to delivering attractive and sustainable returns to shareholders.

Let me close with the outlook for 2026. We've decided to replace operating EBITA with operating EBITA as our key performance indicator and guidance figure.

This change is driven by the following considerations: A metric provides a more accurate view of the underlying operating performance and cash generation by eliminating noncash charges. Certainly, we believe in our assets as a differentiating factor.

This shift aligns with industry practices and makes us more comparable as well. Last year was characterized by significant macroeconomic volatility, muted consumer confidence, and low industrial activity, weak end-market demand, and as well as pricing pressures, particularly in industrial chemicals.

If we look forward, at this point, we see no reversal of these trends. The market environment therefore remains highly challenging, and we are not expecting short-term improvements.

Consequently, we have reflected these factors in our guidance for 2026. For the full year 2026, we expect our operating EBITA to be in the range of €1,150 million to €1,350 million.

A few notes on what this guidance is actually based on: The forecast includes contributions from acquisitions already closed, and it assumes stable exchange rates at the levels prevailing at the time of this publication. Please note also that any potential impacts from the currently evolving crisis in the Middle East are not reflected in our guidance.

As we now look into early 2026, we're seeing a continuation of the trends that we have experienced towards the end of 2025. Notably, it's fragile consumer sentiments as well as ongoing demand and end-market weakness across many regions and product categories.

Potential effects of the geopolitical escalation in the Middle East remain quite difficult to predict at this stage. As such, prior-year comparables in Q1 2026 remain fairly high based on these trends.

Against this backdrop, we remain fully focused on the areas within our control. We will be advancing our cost-out initiatives, we will be continuing to streamline the organization, we maintain a disciplined focus on cash preservation, and lastly, we will certainly as well strengthening our proximity to customers across all markets.

At the same time, we're working on our strategic review, which we intend to present in the second half of 2026. With this, I'd like to close the presentation now and look forward to your questions.

Hi, good afternoon. Thank you for taking my questions.

Two from me, please. Appreciate that your guidance is based on the macroeconomic environment that you have laid out in your presentation, but clearly, it excludes what's happening in the Middle East at this point.

Just wanted to get a sense, first, how early trading has evolved in Jan, Feb and whether that has changed because of the situation in the Middle East. Are you seeing any disruptions?

Are you seeing any upward movement on chemical pricing? Are you making any changes to your inventory working capital?

I think that would be good to have some color there. Thank you.

I think just a second one, if we think about the cost-saving programs that have been announced, including the new one, how should we think about the one-off costs linked to both of these programs for 2026 and 2027, please? Thank you.

Okay.

On the pricing, we are 13 13 days into this, and the traditional way when you have the hydrocarbon side of things getting under pressure that we have is that the solvents pricing move up. That will impact the solvents.

Those prices move up immediately. Then it moves on to transport cost.

There it's starting to happen quickly, and here we have the combination of the people transporting due to fuel prices, but also the challenge of delays and longer routes, etc. That starts to move.

Then since all chemicals are made with energy, you will see a pressure up on the other cost. What we see now is clearly pricing moving up, and we are active to pass on the cost increases, and working very intensively on this.

It's too early to give overriding numbers, but you can see some of the principals stepping in very quickly and raising their prices, and we do what we normally do in this situation, make sure that we don't get caught between the rock and a hard place.

On your second question with regards to the cost-out program, obviously, the first thing that I want to mention here is we are looking at a broadening and an acceleration of the cost-out program. As you will have noticed when we are now rebaselining this onto the 2025 baseline, we are speaking about €200 to €250 million additional cost-out until 2027.

In order to achieve that, we will continue to incur some one-off costs, which is the baseline of your question, and I would expect this to be in the range of previous special items actually that we have seen there as well. We will continue on a similar run rate.

When you look at the run rate, please do exclude the other one-offs that you have seen in this current year where we have had impairments, that's not going to be repeated into the future, and it's not part of this cost-out program, obviously.

Thank you very much. I think that was very helpful color.

Just a quick follow-up, please. Appreciate the commentary on pricing, but have you seen any changes to volume trends?

Are your customers stocking up, anticipating any disruptions? Thank you.

It's very early days, the 13th day, but if you have a year-end, you would expect a lot of people destocking, and make sure that don't cross the end of December with too much stock. That's normal.

Then when you have a situation where most experienced player would know that pricing would go up because energy goes up, cost goes up, transport goes up, all the rest, you would expect prebuying. What we have seen so far is and it's very short, it's still early, it's hard to say it's different.

The type of feedback we've gotten so far has been, do you have stock? Can you supply us?

We get it that the prices will go up. That has been the first 6, 7 days of that, and then whether they are increased buying, I think we're stepping into that stage now, and here, I think the situation is a little bit different compared to a normal case, and that is that there are quite a few users, people that buy from us often manufacture something with the chemicals, there is a worry in the market about the underlying demand.

Will this energy crisis or whatever we call it result in a lower demand in Q2? That's the mathematics that go through people's mind, therefore I'm also curious to see in 1, 2 weeks what's going to happen to the prebuying, if people are moderate or whether they go all in for it.

If I were to compare the regions, if you take the pure energy bill, here in Europe, we're talking 5x at least for a manufacturer on the energy per kilowatt or megawatt hour price compared to China, a 4x versus the US, and you could expect that Europe going to be impacted quite a lot by this energy increase. You have this balance: Will they shut down production?

Will overall demand go down? Will there be uncertainty?

Just very difficult to know. I think so the volatility as such, I see no problem with that.

We know how to do it. We were quick out to start working on it, and then I'm more curious to see what happens with overall demand because of this crisis, and obviously there we have the whole duration of the crisis that will impact, and I'm not the person to assess how long this will go on.

We just do the best on the pricing now, and then we see what happens to demand as we move forward.

That's very clear. Thank you very much.

Hi, good afternoon. Thanks for taking my question.

I've got two, please. The first is just on the comments in the presentation around some new business wins.

There was a few mentions in North America, a decent number of supplier agreements that have been formed over the last year as well, and I think the reference as well to improving lead conversion. Obviously, this is all in a market where volumes are under a fair bit of pressure.

Do you think this is a reflection of just the internal sort of changes that you've made, or are you seeing kind of outsourcing tick up again in what is obviously a very difficult volume environment? That would be the first question.

Sorry, I'll pause there. Thank you.

Okay. I'm pleased with the progress we made.

We obviously haven't reorganized sales in any massive way, but we removed the split. We made sure people have incentives where they're also rewarded for the joint success, and we have a good account coverage that we think of all the businesses, all the products we can sell into an account, and then sending the people back in the street.

That has led to typically 15 to 20% more time out in the field, intensified sales effort, and then working harder with the customer. We can see that customer churn has been reduced, and then we have done campaigns where we take dormant accounts, customers that haven't bought for a year, and say, let's go out and work with them.

There was one one-week effort where we woke up 70 accounts just in one market by doing that. I see a lot of positive signs of that, but obviously, the market is not great, but doing that hard work, especially on medium and small accounts, and get into agreements and start to get on track and grow with them again or getting a business with them, that has been a little bit neglected because people were too focused on splitting businesses and business definitions.

We are making good progress on reactivating that. Then on the big accounts, here pricing and everything else is more difficult, that have to deal with they're very commercially good.

I would say with the big, big accounts we have, and I'm talking accounts where we are doing total back and forth, upstream and downstream business, half a billion and up, we have had a lot of activity with them also because they are working strategically in these times with their asset, the players they're going to deal with. We have a lot of discussion about putting more over to us and maybe simplify the distribution structure.

We also have some people that want to go the other way, but I would say the trend is with our big accounts that we are making growth plans with all of them.

Great. Thank you.

That's very helpful. I did have just a second quick question, please, on the cost savings.

It looks like these are expected to be sort of fairly broad-based in terms of the areas you're targeting. What I did want to ask specifically about the opportunity that might still exist within your kind of other operating expenses.

I think these did come down a little bit this year, but maybe not as much as we might have expected, particularly given that focus on sort of duplicate costs. I'm thinking about the expenses for advisory, auditing, and so on, also quite elevated miscellaneous operating expenses, too, certainly compared to a couple of years ago.

Is there still quite a big part of that to be sort of targeted in this next kind of wave of cost savings? I know you haven't broken it out specifically, but, yeah, any kind of view on how you view that kind of other operating expenses line and the buckets within it would be really helpful.

Thank you.

I will hand that question to Thomas, but before we start, there is an operating expense of the whole network and the productivity, the footprint, the flows, the loading of the trucks, and the sourcing of material, indirect and direct spend. That's a big topic in this business, and we have done some work on it in some region, but that hasn't been the primary focus.

We will get more into that, and it will help that we have a COO coming in that has the clear responsibility for the productivity of that whole piece. That's a very general comment, but over to Thomas to give some flavor.

Absolutely. When you look at the cost program that we have started some time ago, this obviously has helped us as well already to get a clear direction in terms of cost savings being incorporated and at least managing actually inflationary trends in that context.

That was a very broad cost program to your question in terms of what are we covering in that context, and in that we have already reduced quite a few of the other expenses compared to previous years. You've mentioned advisory costs as an example as well, that has been reduced significantly over the last quarters already.

Consequently, if you look forward, it continues to be a broad cost program covering all individual lines, but in terms of the potential for the self-help initiatives that we certainly have quite a bit of potential still today and that we will be running and accelerating, it is on the one hand on all lines, but some of them more pronounced, as Jens has actually been talking about. If you go through that, we have had quite a bit of impact already, and we see quite a lot of green shoots on the overhead costs in terms of people-related costs for the central resources.

We do see as well that in that line we continue to have then as well on the other expenses that are in these areas of the business further reductions, and we will focus on all of that continuously to keep them at a lower level and further reduce, but then we will get as well into transport and warehouse costs where we will see more impact going forward, as these are definitely as well the larger cost blocks in order to continue to optimize actually the cost space. Making really good progress, and on the other hand, quite a bit of self-help opportunity still into the future.

That was very helpful. Thank you.

Both, cheers.

Hi. Good afternoon, everyone, and thank you so much for taking my questions.

Just the one, please. I was trying to understand how do you see the competition from China in both your divisions, that is Essentials and Specialties?

We have heard your competitors in the specialty distribution saying that they're saying a considerable Chinese competition, which has led to a decline in their gross profit and EBITA, and especially in the semi-commodity kind of products. By that logic, is Essentials seeing a little more competition than Specialties?

This is before the war. If you could give us some color on that, please.

Good.

I would say it hasn't changed. We have actually seen quite big price increases in China of product.

The Chinese principals, and we have a sourcing center in China, have been very quick to raise prices, yeah? The competition from China in APAC or South Asia, etc., is still there, and you see it also in Latin America, especially Brazil and some other places.

It's a bit spotty. Some markets not, but some markets very heavy.

Then there's in Mexico and China of and US because we have the tariffs. Then we see it coming into Europe.

On the Specialties side, sure, you have a lot of specialty chemicals that coming up there, and some have been approved, some you can use in the market, some not. I would say nothing has really changed on that front, maybe beyond one aspect, that I've seen some big price increases from China just in this week on product due to the energy situation and Iran or the Middle Eastern turbulence.

Sure, that's helpful. Thank you.

Good.

Thank you, Michael. This brings us to the end of the conference call.

In case there are further questions, please do not hesitate to reach out to our IR team. Our results for the first quarter '26 will be published on the 13th May.

Ladies and gentlemen, thank you very much for joining us today. We are looking forward to see you on a roadshow or a conference which we will rejoin in the next couple of weeks.

With that, I give you a good day and goodbye.