Good afternoon, everyone, and thanks for joining our half-year and second-quarter 2025/2026 earnings call. Building on the momentum from the first quarter, we delivered a strong first half of the year.

Even though we had to work through quite a bit of regulatory noise, the underlying tailwinds are clearly moving in our favor. We are heading in a very positive direction and will keep doing the work that positions us well for what is ahead.

As always, we will walk you through the regulatory developments and what they mean for us later in the call. Given VERBIO's solid results in the first 6 months, we are now expecting our full-year EBITDA to come in at the upper end of our prior guidance range, which was indicated to be at a high double-digit euro million level.

With that, I'll hand it over to Olaf to review the financial and operational results. Olaf, the floor is yours.

Thanks, Claus, and good afternoon, everyone. As you can see in the chart on the left, our biodiesel output was slightly below the level of the same period last year, with 311,000 tonnes in the first half of 2025/2026.

In Europe, well, we once again reached a record production volume, which highlights the strong operational stability of our plants. In Canada, we shut production towards the end of the reporting period as planned for the winter.

This was a pure commercial decision. Regulatory changes in the US and the protective measures in Canada in response have shifted the seasonal cash flow profile of the plant.

Overall, we still expect good full-year results, but during the winter months, we will most likely not produce. Ethanol and biomethane production also increased year-over-year to 307,000 tonnes and 672 gigawatt-hours, respectively.

The increase in production came from the ramp-up of our bioethanol biomethane plant in Nevada and also better uptime at the ethanol plant in South Bend. That more than made up for the lower volumes in Europe due to maintenance.

Despite the extreme weather conditions in Iowa, our Nevada plant hit a new production record in December, which, well, was was great was great to see. With overall higher production and sales volumes, VERBIO was also able to increase its revenue.

This was supported by a renewed rise in demand for greenhouse gas quotas, both in terms of volume and price. Although material costs were also, well, above the level of the same period last year, their increase was disproportionately lower compared to revenue growth.

This, in turn, means, well, our EBITDA increased mostly thanks to a higher gross margin. Lower operating costs, first, higher other operating income, and gains from commodity forward transactions also contributed to the increase in EBITDA.

Therefore, on a year-over-year basis, we still felt the impact of lower greenhouse gas premiums in our yearly term contracts, which expired end of December last year, but this was more than offset by the recovery in the spot greenhouse gas market prices. Thanks to the improved operating operating dynamics, supported by more attractive market conditions, we saw a year-to-year—no, sorry, a year-to-date operating cash swing of €21.7 million, bringing operating cash flow to €35.6 million.

Meanwhile, capex amounted to €47.8 million, resulting resulting in an increase in net debt to €173 million. We had already flagged that net debt would increase over the course of the year due to our strategic investments, but compared to Q1, net debt already came down substantially from its peak as we have hit the turning point and delivered a positive free cash flow in Q2.

Investments itself, they are directed towards the specialty chemical units here in Bitterfeld as well as into the production plant in South Bend, Indiana, in the United States. The equity ratio remained at 58.2% and hence at a comfortable level.

Now we can head Let's take a closer look at the quarterly performance. Our group EBITDA increased both year-over-year and quarter-over-quarter to €30.1 million from €20.8 million in Q2 last year and €15.4 million in the previous quarter.

With this, we are finally back in the black also at the earnings per share level. As depicted on this slide, the bioethanol biomethane segment was the main driver behind this movement movement, thanks to the stabilization of the greenhouse gas quota market and the attractive ethanol spreads in Europe.

VERBIO was able to report a positive segment EBITDA in the second quarter of 2025/2026 for the first time, the first time in 5 quarters, coming in at €5.8 million. Year-over-year, the capacity ramp-up in North America also helped.

Now let me give you a bit more color on the segment performance. Here, we are focusing on quarter-over-quarter changes rather than year-over-year.

In the biodiesel segment, production in Europe reached record levels in the second quarter of 2025/2026. In Canada, as I have outlined before, volumes were deliberately deliberately scaled back during the reporting period due to changes in the regulatory environment in North America.

As a quick refresher, last year's change from the blender's tax credit to a production tax credit in the US, along with the lack of guidance, has caused many producers to scale back biodiesel production across North America. Such uncertainty has made it harder to run at full rates.

During the summer, we have resumed production thanks to good demand in Canada and our prime location there. In the winter, however, biodiesel use in Canada is very limited, production naturally comes down.

Importantly, with some form of production tax credit in place and solid summer demand further supported by domestic blending requirements, we assume summer margins should be strong enough to make the overall year attractive despite these seasonal slowdown. Now, taken together, these developments led to a lower overall production compared to the prior quarter.

We produced 144,000 tonnes versus a 167,000 tonnes in Q1. Due to this, revenue also decreased in the second quarter of 2025/2026.

We generated €223.8 million compared with €244.1 million in the previous quarter, as can seen from the chart on the left. Still, our EBITDA in the segment increased to €24.1 million, and this is thanks to higher selling prices in Europe compared with only a moderate raise in material costs.

For some market context now, let's take a look at the reference charts. I think most of you are familiar with these charts already, but I will still go to into the details.

These charts illustrate how biodiesel spread spreads have developed. By spread itself, we mean the difference between the biodiesel price and the rapeseed oil price.

While the charts actually don't capture our specific sourcing strategy, they still give you a useful snapshot of the broader market trends. To remind you, we typically buy our rapeseed oil 2 to 3 months in advance.

That's actually the difference. Now, with respect to the spreads towards the end of the year, you can see the spread picking up, but came back again a bit in the last few weeks.

After the cabinet decision on the 10th of Yeah, it was the 10th of December '25 confirmed that the double counting would end going forward, market players actually used the remaining window to increase the share of advanced biodiesel still eligible for double counting. This, in turn, actually required more rapeseed oil-based biodiesel or RME or rape oil methyl ester, because advanced biodiesel itself has weaker cold flow properties and therefore needs RME to meet winter grade specs.

This seasonal push supported RME margins, while rapeseed oil prices came off slightly. Next Moving on to the bioethanol and biomethane segment, we recorded an increase in revenues to €228 million, which is actually, again, a new quarterly record.

Revenues are shown by the gray by the green bar on the left-hand side of the left chart. The main drivers were the recovery of the greenhouse gas quota market, higher sales volume in bioethanol biomethane, and increased selling prices in Europe.

Lower selling prices in North America had an offsetting effect. Meanwhile, bioethanol and biomethane production volumes were roughly flat compared with the previous quarter, mainly due to maintenance work in Europe—not US, to be clear, in Europe.

Overall, bioethanol utilization stood at 76.6%, and biomethane utilization at 67.9%. Thanks to the stabilization of the greenhouse gas quota market and improvement in ethanol spreads in Europe, we were able to report an EBITDA crease increase of €15.4 million in the second quarter of 2025/2026 compared with the previous quarter.

Just as we discussed in our previous call, the margins between ethanol prices and feedstock costs had widened just for a few weeks at the beginning of the quarter. Here again, next slide, also take a look at the reference graphs.

They show how ethanol market spreads have developed over time. As with biodiesel, they don't reflect our exact purchasing of feedstock strategy or stop yeah, they don't reflect our purchasing feedstock strategy, but they do give a good indication of the broader market environment.

On this slide, we use wheat as the reference feedstock, but production-wise, we also can use corn, rye, or triticale, actually essentially anything that's cost-competitive or offers better CI values. Now looking at the price chart on the right, ethanol prices increased towards the end of the first quarter and into the beginning of the second, while wheat prices eased slightly thanks to strong harvest.

In October and November, spot ethanol prices traded above €1,000 per tonne, reflecting some short-term imbalances, but also support from tight supply due to maintenance at European plants, steady demand, and lower import volumes. As you might recall the discussions we had in Q1 regarding future margin spread development, looking back, I I believe sticking with a conservative margin spread approach turned out to be smart.

Now looking ahead to '26, ethanol fundamentals remain positive, and margins have increased in recent weeks. Additional support comes from the RED III transposition in the Netherlands, which now restricts the use of denatured ethanol.

Good feedstock availability in countries such as France also supports production. Now moving from Europe to the US.

In the US, ethanol margins were strong in late summer, helped by low inventories, lower production, and solid export demand. As we move into the fall and our Q2, margins came down a bit, which is actually normal for the season.

The margins were still higher than in '24 thanks to strong industry fundamentals. As a result, production was high for this time of the year, and inventories started to build up.

Stocks are still below last year's levels and near the lower end of the usual seasonal range. Now looking ahead, margins are supported by these tight inventories and a record US corn crop, which is helping keep feedstock costs under control.

On the top of that, domestic blending demand is still healthy, and ethanol exports as well, which reached record levels last year and expected to grow again in 2026. Now going back to Germany.

Let's turn to the development of the greenhouse gas quota, which, as mentioned earlier, is a key earnings driver both directly and indirectly, as it also reflects the overall health of the biofuel markets. Let me briefly explain why the greenhouse gas quota actually is for anyone who may be joining us for the first time here in this call.

In Germany, the greenhouse gas quota system requires fuel suppliers in the stop in Germany, the Give me a second. In Germany, the greenhouse gas quota system requires fuel suppliers in the transport sector to reduce the greenhouse gas emissions of the fuel they sell.

Germany is one of the largest biofuel markets in Europe, this system has a big impact on the market. Fuel suppliers can meet their targets in two main ways.

They can blend more renewable fuels into their products, or they can buy greenhouse gas reduction credits from low-carbon fuel producers like VERBIO. How does it work?

In our case, we supply biomethane in the transport sector, thereby generating emission reductions that fuel suppliers then can use to meet their own legal obligations. The price of the greenhouse gas quota is driven by supply and demand for these emission reductions.

Fraud cases in the market artificially increased the supply of reductions in the past, which caused prices actually to collapse. As a result, at the end of '24, a political decision was made here in Germany to suspend the use of surplus quotas in the obligation years '25 and '26, last year and this calendar year.

The surplus built up until end until the end of '24 will remain in place, but they can only be used again starting in '27. This initially pushed prices lower, but '25 prices began to recover as the market adjusted to the suspension.

Now the transposition of the RED III into national law provides an opportunity to implement tighter compliant compliance rules and additional controls to prevent fraud going forward. Since the first draft was published at the end of June, a ministerial agreement has confirmed that double counting will be eliminated.

This is a positive development, especially combined with the restriction of cross-protection. Claus will explain the removal of the double counting and its impacts in a bit more detail later on.

That brings me to a recap of what has happened during the quarter under review. The cabinet finally adopted a draft in December '25, after several several delays that had weighted on prices.

This had been a bit late than This was actually a little bit later than we had initially hoped, but overall, the sector is finally moving into the right direction. The Bundesrat has now already discussed the legislation, and the final parliamentary debate in the Bundestag is scheduled for March this year.

Once passed, the law is expected to enter into force retroactively from 1st of January 2026, 1st of January this year. Now with this, let me turn to our guidance.

The strong bioethanol market has worked in favor, which allows us to specify our EBITDA guidance to the upper end of the previous expected range. The range, the previous range has been communicated to be in the high double-digit million amount.

We we expect a lot of questions regarding this, to be clear, the guidance reflects a prudent expectations, our prudent expectations. The improved results and lower investments compared to the previous year are expected to lead to a moderate increase in free cash flow and reduction in net financial debt year-over-year.

Capex continues to be under tight control, as we have again demonstrated this quarter. The A key part of our capex right now is the construction of our ethenolysis plant plant in our Bitterfeld site.

We are fully on track. Starting in the second half of 2026, we will produce the first renewable molecules for the chemical industry.

We are fully on track with our construction here in Bitterfeld. These specialty chemicals are essentially building blocks for detergents, cleaning products, high-performance lubricants, and plastics.

With this project, we are helping drive the shift from fossil-based to renewable raw materials in the chemical sector. Now I will hand back to Claus, who will provide further insights into the regulatory environment and our broader outlook.

Thanks, Claus. Go ahead.

Thank you, Olaf. Now about the drivers.

We've talked a lot about the end of double counting, and it it was important, very important, but we want to explain you what does it finally mean and what is the effect, because some people were asking us, "Is this not negative for VERBIO?" We have conventional biofuels, and we have advanced fuels, and we all know that most of these advanced fuels were not advanced fuels.

These were conventional fuels with a different passport. Pre-2026, in 2025, the price per tonne of CO2 saving, the price was around €200.

For our conventional fuel, for 1 tonne of CO2 saving, we got €200. Now, with the new legislation coming, prices doubled, went up to €400.

CO2 side savings coming from conventional fuels will now create the double price, and finally that is 70%, 80% of our production. That was the most important part for us, because we were suffering under that fraud.

Because we must be honest: the fraud will continue, at least at the beginning. For the advanced fuels, advanced fuels are creating more CO2 savings because of double counting.

It didn't or it doesn't mean that they are just getting double price; it was even more. If we are producing biodiesel from rapeseed oil, 1 tonne of biodiesel is creating 2 tonnes of CO2 savings.

If we are making biodiesel from an residue, an advanced biofuel, this biofuel was creating in 2025 5 tonnes of CO2 savings. That is important that this is over, because finally that was the economic driver.

The idea to give a better greenhouse gas savings with double counting to advanced biofuel was at least at the very beginning a good idea to improve and increase the volumes, but finally it didn't work, and I don't want to recall all these reasons. This is the individual pricing, but what does it mean per tonne of product?

That is now the real effect, and it shows why our economics, especially now in 2026, will further improve. For the amount of greenhouse gas savings per tonne of biofuel, before this was per tonne of CO2 savings, now we are talking per tonne of biofuel, and in this case, per tonne of biodiesel.

The increase In 2025, for the amount of CO2 savings per tonne of biodiesel, the money we received was about €456. Now, with the new legislation and the higher prices, the premium is €912.

For advanced, it's So it doubled for conventional. For advanced, it's still more because you are calculating with a C with a 0 amount of greenhouse gas volume on the feedstock, but there is no more double counting.

At a price of €200 per tonne of CO2, the contribution for the product, for the tonne of advanced biofuel, was €1,168 until the end of 2025. Now, with the higher price for per tonne of CO2 saving, it is €1,244.

Still more attractive, but before, the gap was between €1,168 and €456, and now it is between €1,244 and €912. That shows the real impact and the return to a level playing field.

With the fact that the double counting is going away, we also had to adjust our CO2 foot our handprint. On this I will come later.

We we also put this chart the next one this chart in our presentation, which shows the difference between the different biodiesel products. What VERBIO is producing is rapeseed methyl ester, which is FAME -10.

That is the pricing what we have seen from January 2023 until January 2026. Price was more or less stable.

The blue line is the price for HVO, hydrated vegetable oil, same feedstock, other process. Also here you can see the fraud, because in January 2023, the differential between our FAME -10, our rapeseed methyl ester, and HVO based on so both residue-based was more than $1,000 per metric tonne, so much more expensive.

This differential between April '24 and April or July '25 went down to $500, $600, it came down very much, and that brought our product under pressure. At least most of this HVO was not advanced; most of it was palm oil or palm oil derivatives.

Now with the new legislation, what you can see now since October, since it is clear that the pricing will change, that the gap went out again. Why is this important?

Because it shows we will need in 2026 and 2027 in Germany and in most of the European countries, we will need HVO to fulfill the biofuel targets. The cheapest and most efficient solution is still biodiesel first generation.

That's the cheapest product. There is the blending wall.

HVO prices beyond the blending wall will set the target per tonne of CO2 savings. Our biodiesel for the biodiesel business, the volumes and the blending wall will be covered, but everything what is beyond, and this is important for the other products like ethanol and especially renewable natural gas, and finally the CO2 price.

Coming to 2026 and 2027, there is a high probability that a price of €400 per tonne of CO2 saving will not be enough. Prices might go higher, but this we will see during the coming months.

What I want to tell you is there is a strong indication that it needs to go further up, because the price-setting product for the tonne of CO2 savings will be HVO, and with the removal of the double counting, as I said, we are back on a level playing field. Now let's come to, as I said, the adjustment of or update of our CO2 footprint.

The handprint on that slide shows the CO2 saving potential of all major products we produce and trade globally calculated under the German regulatory framework, which until now included the ability to double count advanced biofuel. Under the old rules, we reached 5.5 million tonnes of CO2 savings in 2024/2025, with a target of 8 million by 2026/2027.

Adjusted for no double counting, the comparable 2024/2025 figure would be 4.2 million tonnes. With new rules, we now expect 4.7 million tonnes by 2027/2028, driven mostly by the expansion of advanced biofuels in North America, and upside comes from carbon sequestration and other emission reduction measures.

We need to adjust our CO2 handprint to the new legislation. Speaking of North America, let me quickly give you also an update on the regulatory developments, but as I said, very briefly.

The trade policy of the US administration supports and supported exports, which is strengthening demand. Then 2, 3 weeks ago, Mr.

Trump was in Iowa announcing that now a year-round E15 approval will support domestic blending. Right now in the US, E10 is standard fuel and is limited is limiting the market in the United States.

The message from Mr. Trump is that there will be a year-round E15 approval, and because ethanol in the US is so cheap, that is really interesting for the filling stations to offer a higher blend and make money on ethanol.

The most important part is the new draft of the 45Z guidance, which provides greater regulatory clarity, and that's what is behind is the concept of production tax credits related to the carbon intensity. In the US, it's carbon intensity; in our in Europe, it is greenhouse gas calculation.

At the end, it's the same, but there are different models. Related to the carbon intensity, there is a possibility to get up to $1 per gallon of ethanol, which is about 30 cents per liter of ethanol in the United States, which is a lot of money and which will bring the price for ethanol further down.

US ethanol is already the cheapest ethanol in the world, but with the 45Z, US ethanol will come down further. It depends on your production, but if you are getting full contribution from the 45Z, a US producer can offer ethanol at 20 cents per liter, which is amazing, which is much, much cheaper than fossil gasoline, and what we expect is that this will further drive the export volumes on certain destinations, because with prices like this, it opens up, even at crude oil prices at $50 or $60, the so-called voluntary blending, because it's it's it's just the cheapest fuel.

Saying that, let's head into our Q&A session. Thank you very much for listening, and now let's answer your questions.

Sarah, please take ahead.

Absolutely. Thank you so much for the presentation, Mr.

Sauter and Mr. Tröber.

Dear participants, we are now open for your questions, and everybody is invited to post questions in the chat, and I would be happy to read them out for you. Additionally, analysts have the possibility to ask questions in person via the audio line.

Having said that, we received the first virtual hands. The first one is from Mr.

Kuhn. Please go ahead and ask your questions.

Good afternoon, thanks for taking my questions. I'll start with the most obvious one, the guidance.

If I would use €30 million as a run rate per quarter for the rest of the year, and my impression was that with some maintenance work in the recent quarter, it wasn't a particularly strong, I would already arrive at more than 100, interested in your views on guidance and let's say how much of a safety cushion is probably reflected in it.

Okay. We did not increase the guidance.

We said it during the presentation that we think that is a good first half year, but there is still something with the new regulation under negotiations. We think that it's still not over, there is space for improvement.

There are also other, let's say, uncertainties which we wanted to wait that we have clearness. Finally at the moment, you saw the chart of the strong ethanol margins October, November, and then it came down.

Right now, ethanol again went up, there is still some volatility in the market, and let's say we have a cautious approach right now. If the things are developing in the right direction like we expected, then there might be realistic space of some lift-up for the guidance, but not before the end of Q3.

Right now, I would not say it's a conservative approach; I would say it's a cautious, realistic approach.

Understood. Thank you, very clear.

A second one on the Nevada plant ramp. I think during the last call, there was some discussion on, let's say, time windows of high utilization widening from daily operations, weekly, and so on and so forth.

Maybe you could give us a little more insight on where we stand in the ramp, where we are in terms of utilization and what further, let's say, gradual improvements we should expect for the upcoming weeks and months and quarters.

Okay. As I said during the presentation, we have achieved record production in December.

In January, you remember that storm, there was a nat gas price which was incredible. Usually, natural gas price is about $3 per MMBtu, and during that week, it went up to $70.

Natural gas is still needed to produce ethanol, so that was a difficult situation in January for ethanol. We stopped our ethanol production in Nevada, and we were just producing natural gas and made a margin on that.

January was not through technical issues; it was a market issue and really extreme weather. We are clear on our track to have full utilization now in Q4 of our business year, which means during the summertime.

We had already 83%, 85% utilization rate. We are very positive here to be able to manage that.

I think that January was an interesting part as well for us because we were able just to take the opportunity and make money out of this extremely high natural gas prices. Everybody to whom you are talking even in Iowa is that this January, this 10 days or 8 days, were really extraordinary and very, very cold.

We had up to -40 degrees Celsius there in Nevada. You can imagine what was going on there.

We are on a good development, and I think you also can see it. Olaf mentioned it.

Just look how ethanol and natural gas is developing. We were coming from -15 in Q2 from the last business year, permanent improving.

Now we are back, and this is mainly driven by the US development.

Excellent. Thank you.

One last question on the German THG quota. I read in some newsletters that there is a discussion to maybe increase from the 16% planned for '27 maybe towards 17.5%, maybe even 18%.

What are you hearing out of that discussion, and what would be the, let's say, potential implications of the scenarios currently being discussed?

This is exactly what I meant when I said there is space for further improvement. That is just one point.

There are two, three points which are very important or important and which will further increase the value of the greenhouse gas volume. To come back to your specific question, 1% of CO2 saving is about 2 million tonnes.

1% of higher quota is about 2 million tonnes of CO2 savings. The original number was 15, 15% for 2027, but we all know that in 2027, some volume from 2024, which is frozen, will come in.

So 1% is really too low. That is our argumentation.

If we are going up to 17.5%, that might be another 1.5%, then we talk about another 3 3 to 4 million tonnes of CO2 savings. This will mainly be absorbed from the frozen volumes in 2024.

What I hear is that there is consensus that nobody is saying that what we are asking for here in this specific situation, and we were suffering a long time with this fraud, nobody is saying that this is unjustified. Therefore, I think that 17.5% or even 18% can be realistic.

We have to wait another few weeks more. I would say 70%, 80% I'm sure that it will come.

Right, fingers crossed. Thanks for the answers.

Thank you

for the question.

Double is better. Then we will move on with the questions from Mr.

Hesse. You can unmute yourself now.

Thank you so much for taking my questions. I've got a few.

One of them being if you can give us a little bit of color in Q2, how much of the recovery in bioethanol biomethane was driven by the improvement in spot contracts versus the improvement in spreads?

Oh, this is hard to answer. Olaf, to you?

Most of the volume, I would say the lion's share was driven by better ethanol prices.

Mhm.

Some for sure of the CO2, but most of the CO2 from ethanol was already covered under the existing contracts. We are talking about let's say 30,000 tonnes of free CO2 saving volumes, and now you can see, yeah, well, if we are talking about €100 or €80 better price, then it's 30,000, it's about 2.5 It's not a big chunk.

€2.5 million, €3 million can be, not more. This is just a rough calculation.

Makes sense.

You saw it, Constantin. You saw it that prices especially accelerated at the end, November, December, which is very, very unusual, because finally now the oil companies are doing their calculation how much CO2 savings they need for 2025.

They look how much gasoline they sold, they look how much gas oil they sold, they make their calculation, and finally, usually in a normal year, they buy the remaining volume in the first quarter of 2026. This year is special because everybody knew that double counting will go away, and also that there is fraudulent volume still in the market.

If you buy it until the end of 2025, you are not responsible. You can trust in the papers what you get, even if you know that it is not true.

Vertrauensschutz is ending at December 2025. A lot of people were buying and said, "Okay, I don't have a risk here."

That was driving the CO2 prices. It is still the same framework like the other years before, nothing has changed regulatory in Q2, in our Q2, which means Q4 2025, and that was driving the prices.

I also said now that there might be even a better development now in 2026. Right now, they are doing their homework.

That's great color, Claus. Thanks.

That leads me to my second question, which is what I'm trying to figure out is where should we expect the negotiations to have gone for the new quota levels in '26 in euro I know you obviously don't provide us with a number, but I'm trying to figure out, quota levels ran all the way up to 500 at the end of last year, and they dropped quite significantly now again at the beginning of the year. I think we're back to about €440.

What I'm trying to figure out is if I look at 2026 calendar year 2026, what is the new quota level that I should be kind of anticipating for the term contracts compared to last year? I think last year you were somewhere in the low 300s.

If we were to use this new quota price, would 2026 be somewhere around the low 400s?

We are not providing here information like this, just for the logic. The contracts are negotiated between October, November, December, and most of the contracts last year came in very late because everybody was looking what is the final regulation.

If the market shows €400, €450, that will be also reflected in the contracts, maybe a little bit lower, but that is always the level. That was the difficult situation at the end of 2024.

CO2 prices came down below a hundred, and because they were frozen, and under this circumstances, we had to negotiate the contracts for 2025. I can tell you, our CO2 prices for the 2025 contracts were even lower.

Okay? That is the level how you can calculate without disclosing any details of our contracts.

That was the level at that time for the new contracts for everybody. Now the interesting thing is how efficient you are in your processes.

I said roughly with 1 tonne of biodiesel, we are producing 2 tonnes of CO2 savings. It can be 1.8, and it can be 2.4.

That is the specific value of a company, how you are able really to get as much CO2 savings out of 1 tonne of your product as possible. In this case, VERBIO is very, very efficient.

Understood. Then if I may, just on the guidance, following up from Michael's question, Olaf, maybe to you, when I look at the guidance for the remainder of the year now, you clearly are obviously considering the new contract levels for CO2.

Bioethanol prices dropped significantly again in December. We've started seeing a bit of a recovery now in January, February.

Is this new guidance taking a more conservative view on bioethanol prices, or are you already pricing in that slight recovery that we've seen in early '26?

Constantin, don't stress me on the guidance. I think I said enough on it.

You can answer your question yourself. When we made the guidance.

Where the CO2 prices were at that time. There is still the regulation has not passed the parliament.

I think right now is really the wrong timing to do already something. Give us a few more weeks once we have clearance.

Even the impact that it might go from 16% to 17.5% or 18% for 2027 will impact the market, because with 17.5 and even 18% for 2027, that might be a challenge to fulfill this target. The molecules will be there, but as I said, the price-setting product for the tonne of CO2 saving is then for sure HVO, and with a price differential to normal biodiesel with $800 to $1,000 per metric tonne, you see what that means for the CO2 savings.

Nothing more to the guidance. We will come back in a reasonable time if it is necessary.

Sounds good. Fair enough.

Last two questions then. Obviously, I think in '26, it's very negligible, but in '27, if we could have an idea of what kind of contribution you expect from that, and at what level of EBITDA would you feel comfortable again to start investing capex to increase your biomethane production again?

Those are the two questions.

This is very interesting. We are going to start up the ethenolysis in in a new business year, beginning July.

I don't know what will be really the contribution, because this ethenolysis gives gives us gives us new additional optionality. Right now, I think there is also a change in the view in Europe between this discussion first and second generation.

The cheapest way to fulfill decarbonization in transport is first-generation biofuel. That's it.

That Germany has still a lower target than what is allowed in Europe. We can do 7% volume.

There is a cap, and Germany has 4.4. They wanted to decrease it further, but no way.

Maybe we are also able to bring it up again. That product is the feedstock for ethenolysis.

It is a new process. It will be a new market.

We need to develop during 2027. Don't expect an additional EBITDA contribution for the next business year.

That is something new. It is not this market will be not dependent from the transport sector.

It's a voluntary market. We want to see how much people are really willing to pay for the green premium.

To the whole market, which is necessary for Germany, this is just a very tiny tiny tiny production. I I used to compare it with when we started up with biodiesel 25 years ago in 2000.

It was a new product. We had to convince the hauliers to use that biodiesel.

We had no approvals from the truck producers. Ethenolysis is a promising, interesting new segment.

Right now, I think, when I recall all the ideas what big players had with renewable chemicals, I think it's just VERBIO which remained to follow up that way. Don't expect an additional contribution also for the next business year.

We have to develop this market. We have to develop the process.

We have to improve it, go through the Phillips curve, bring it into the market. Once it is established, it will create completely new and a different stability to a to VERBIO than we had in the past.

The dependence on sometimes crazy developments in the transport sector, with fraud, with I don't know, some sometimes stupid regulation, will go away. That's a new pillar in the development for VERBIO, but it will take time.

Hello, Constantin?

Understood. Thank you so much, Claus.

Okay. Good.

Thank you very much for your questions. Continue?

Yes, we have two questions in the chat we do not want to miss, even if we are a bit of time. Mr.

Timm, he would like to know, since we heard a lot about the US and EU, my question is, are there any updates in India, especially with the GAIL deal? Another question from Mr.

Lieder is, can you give an update on India and insights into your global trading activities?

Okay. First, India.

Right now, no, I'm sorry, no new news except that, but this you all know, that now India and Europe is coming closer in a lot of things. One of our ideas in India was that we wanted to have the opportunity to monetize greenhouse gas savings also in Europe.

That's now becoming more realistic with this trade deal, which is promising. To develop new projects with GAIL, we have also now another partner, which is an Japanese gas company.

It's going on, but nothing which can be disclosed at that point. I also can tell you that the Indian government is preparing a new big package for they call it CBG, compressed biogas, in India.

Indian government did a great story with ethanol. That India has now E20, 20% ethanol is the regular fuel in India, and they want to repeat this positive development with CBG.

A big package will be prepared. It will somehow be disclosed in summer, July, August, and that will lift up our activities in India to a new level.

Please, I'm sorry, but give me a little bit more time. Sarah, what was the other question?

The first one about US?

No, the first one was about India, especially GAIL deal.

Okay. The second point was about global trading?

Yes.

I would say 2 years ago, VERBIO was 99% pure producer, and since that time, we established more trading activities in North America and also trading activities for Europe in Geneva. The development is positive.

It's not only the impact with trading volumes what we are doing, it is also stabilizing our business, because with our team in Geneva, we increased our supply market. We are now also supplying product into France, into Belgium, it widens up our ability delivering physical molecules to the market.

The contribution is not only on the pure trading side, and the overall volumes what we are now doing from VERBIO is, let's say, between 10% and 25% more than the volume what we are producing ourselves. We had to learn, we have now our logistical abilities in Rotterdam, and yeah.

The plan for the future is to increase this further. The plan is to go up to 50% of our physical volumes, the amount what we can produce on ourselves, but to make it crystal clear, VERBIO will be continuously a main producer of the molecule, and the trading is just something to make sure that our own plants can always run on 100% capacity.

This leads me to one question what I forgot from Constantin. He was asking at which level we would increase our biomethane capacity.

Here also, after this crazy time the last 3 years, we have now no clear plan at which level we would come back to do new investments. Right now it is absolutely not on our agenda.

The first, what we want to see is that the measurements against fraud will take place, that they are efficient, because if the fraud is going on, not from China anymore, maybe from Pakistan, from South America, I don't know from where, then it doesn't make any sense to continue doing new investments in Europe. We want to see that the fraud goes down.

We should not be naive that it will completely go away. There will be always some fraud, but how effective will be the new regulation, and finally, what does the EU Commission and what does the German Ministry of Environment learned from the situation the last two and a half, three years?

Because also to be crystal clear, that fraud mainly happened in the biofuel sector, but a lot of other industries were looking what is going on in the biofuel industry, and what are the measurements to protect investments which were done with the idea of supporting the energy transition. I know that we are not the most loved child of the German Ministry of Environment, but finally, they didn't do a good job.

Now they come back with a very, very restrictive new regulation, but at the end of the day, we have to look what they really bring on the ground. That's the time, minimum the next year.

Let's see what is going to happen, how the markets are developing, and then we will make a decision. Okay.

Some more?

Nothing more to add, no further questions come in. That answer concludes our call for today.

I say thank you for attending. Have a lovely remaining week.

Mr. Sauter, some final remarks from your side?

Yes. Sarah, thank you very much.

You did a great job. It was a good call.

Everything worked. Thank you very much for everybody who was participating.

It's an honor for us that you are interested in our company. We know that it was not an easy time the last 3 years, but it is getting better.

Thank you very much. Thank you for everybody who was joining, and namaste.