U p next is a big company, Knorr-Bremse AG, with Sophia Kursawe. I hope I pronounced that correctly. Senior Investor Relations Manager. I just promoted her to the stage. Let's see. Okay. Sophia Kursawe, could you please join us on stage? Action. You just joined us, perfect. Now we just need you to unmute and start the video. Yes. Hello, everyone. Can you hear me? Yes, we can hear you. Okay, very nice. One second, I'll just try to put on the video. Okay. Hello, everyone. Awesome. Perfect. I hope you can see me very nice. Okay, one second. I will quickly try to share my screen with you. Can you see something already? Is this working? No, not yet. No, not yet? You need the screen button at the bottom. Okay. Yes, now it's loading. Now it's in full screen, fully loaded. Looks perfect. All yours. Okay, sorry for the slight delay. Technical is always a problem, but I'm very, very happy to be here. Let's jump directly into Knorr-Bremse. Should I speak in English or in German? That's the most important question right now. Please do it in English. You have about 25 minutes, and then a few minutes for Q&A. Okay, my name is Sophia Kursawe. I am a Senior Manager Investor Relations at Knorr-Bremse. I have been with the company for six years, and I am very happy to be here and talk about that great company today. Keep in mind that every day you are getting in touch with KB, generally. There is always product running in the background when you do not see it. When the train is braking or a truck is braking on the highway, it is very high likelihood that it is KB technology behind it. When you think about Knorr-Bremse, you always think about braking because Bremse is the German word for brakes. In fact, we have been, for more than 120 years, specialists for safety-critical systems in the rail industry and the truck industry, and today we are global market leader for braking systems in trains and trucks. Braking systems means we provide hardware, software, and the control unit, mostly together. Sometimes, of course, only on component level, but we are a safety system provider. Knorr-Bremse is a real German industry company from Munich with a global presence. We employ around 30,000 employees worldwide, and we are active in more than 30 countries on more than 100 production facilities globally. Last year, in 2025, we generated revenues of EUR 7.8 billion with an operating EBIT of around EUR 1 billion, which accounts to an operating EBIT margin of 13%. What a lot of people are surprised about is that we are much more than a braking component supplier. Of course, braking is the heart of our business, I would say. Around the whole braking system, we have a very wide technology portfolio implemented that I would like to show you in the next couple of minutes. Looking at that slide, you see a train on the track, and you see that our business is based on two divisions. On one side, you have the rail vehicle systems, RVS, meaning our train rail business. We deliver braking systems, couplers, entrance systems, but also we have a huge aftermarket business. We also supply sanitary systems. It is much more than just brakes. You can also see HVAC here on the left side. This is the air conditioning business that we are planning to sell until the end of the year. Why? It just does not fit our portfolio anymore. I will come to that in a bit and touch on that in a second again. Our customers on the rail side are big rail car manufacturers. In Europe, it would be Alstom, Stadler, Siemens Mobility, but globally, we are connected to all of them. W e also have customers who are the operators, meaning Deutsche Bahn, ÖBB, for example, and working closely together with all of them. On the other side, you see the truck side, the commercial vehicle systems. We are leading supplier here also for braking systems, but also for steering systems, for engine components, fuel efficiency, so much more than just brakes. Also, air supply plays a big role because it is important for you to know our systems are based on pneumatic systems. They are based on air. This is different to the automotive industry, for example, which are based on hydraulic solutions. Overall, we are happy with our setup. Rail currently accounts to 55% of revenues, while truck accounts to 45%. On the other side, rail is more profitable than truck. Currently, or for this year, we expect operating EBIT margin in rail of around 17.5%, whereas we expect for truck around 12% of EBIT margin. There is a little bit of a difference, but we are really happy to have both divisions in-house. Jumping to the next slide. Why is our business model rather robust? We consider it as robust anyway. First of all, we are global market leader. In the rail industry, we have a market share for braking systems of around 50%. In the truck area, with our braking systems, we have around 23% of market share, both the market leader in both markets. A couple of words to the markets and the competitive setup. In the rail area, we have one big competitor in the U.S. It is called Wabtec. Together with Wabtec, we hold around 80% of the market. I t is kind of a duopoly that we really enjoy here. The truck market, of course, is much more fragmented here, but also we are here market leader followed by WABCO, which now belongs to ZF Friedrichshafen. Those market positions, of course, we haven't achieved them overnight. It has taken decades that we kind of could win via good technology, quality, and a very close collaboration with our customers. Secondly, one equity story cornerstone also is that we outperform our end markets. We have done this for decades. Why? Because we don't only grow and benefit from the market volumes overall, we always try to bring extra content in the vehicles, both in the trains and in the trucks, and we have done this quite successfully. Additionally, to also touch on this in detail in a bit, we have a really good aftermarket business that also helps us to outgrow, but also our innovation power. We are not only market leader, we are also innovation and quality leader in both markets. Our products are safety critical. W hen a braking system doesn't work, it has direct impact on humans' lives. That's why there's, of course, very high requirements legally and also from our customers. That's why for us, it's very important also to invest every year into research and development, to focus on technologies that focus on safety, on availability, but also on efficiency of vehicles. Very closely connected are then the entry barriers into our markets. They are extremely high. We are not only one supplier or rail supplier, we are the key supplier of our customers at the end of the day. They know they can rely on us, they know that we can fulfill all homologation standards that globally exist. Also the kind of introduction of new braking systems, of new steering systems or other safety-critical technologies sometimes takes years. Those so-called homologation processes, they are fixing the high entry barriers, which makes it really difficult for new players to come into the market. What I also would like to highlight here is, again, our aftermarket profile which helps us to be very resilient with more than 45% of our revenues. We benefit from high resilience in this respect, but w e also benefit from two different economic cycles. Rail is very solid, rather slow business without many ups and downs in general. The only down that we ever faced was actually during COVID when people suddenly did not ride any trains anymore because they were not allowed to leave the house. This was the only time really that we can remember that the rail industry was facing kind of a crisis. This was, of course, an extra story with COVID. Truck on the other side is a cyclical business. Just now, we are coming out of a rather weak phase in the trucking market and are looking ahead hopefully to some successful, stronger truck market years again. Nevertheless, we are happy that we have both divisions that can support each other and that also have synergies between each other. Our rather diversified regional revenue and also regional different customer base also help us to be less dependent on certain regions, on certain projects or certain customers, which we also consider as helpful among our resilience profile. Knorr-Bremse has the approach that we have a very local approach. We produce local for local and also have a high value chain in the respective markets, which makes us also more resilient regarding geopolitical problems that we have been facing quite a lot in recent years. Especially in supply chain crisis, when there is higher freight prices or also the U.S. tariff topic, we are less exposed than other companies because we have this very local for local approach. Also, many countries these days, China, India, etc, they also require that you produce and have a lot of the value creation in the respective country, of course. I would like to touch a little bit in detail on the aftermarket. The beauty of our business, I would say. Almost half of our revenues coming from spare parts, from services, from modernizations. Overall, the aftermarket share in rail is higher than in truck. Why? Because in rail, we have the so-called homologation standard. Before train starts to ride, it is homologated, meaning checked. In order to not lose this homologation, it is very important that the customer sticks with the spare parts from the respective supplier. Of course, you can exchange a screw or something like that, but at the end of the day, it is rather important that you stay with the homologated system overall and that creates a high stickiness, which we really like. Overall, this means that we are not only making money with the building the rail car or also the truck, but we kind of accompany them the whole life cycle. A train has a lifetime of around about 40 years, sometimes even longer. We receive certain aftermarket business after eight, nine, 10 years. Sometimes you have parts that need to be exchanged on a more regular basis, maybe every two months, a brake pad, for example. This, of course, makes our business very stable, not so cyclical. By the way, aftermarket business is also much more profitable than the OE business overall. Touching on megatrends, because just a couple of words. We have many, many long-lasting megatrends that we follow. It is urbanization, sustainability, digitalization, and mobility. Also, we have industry trends that we follow and that a lot of our operations are aligned with this. In the train segment, we see increasing investments in sustainable mobility into infrastructure overall, but also into capacity expansion. We see that a lot of governments are also investing more and more into rail, because it is just the most eco-friendly mass mobility solution now and in the future. It just remains very important. In the truck market, we see a lot of increasing safety and emission critical requirements, but also the topic digitalization, connectivity between the truck and of course, the big two trends, e-mobility and autonomous driving are driving the markets. Jumping a little bit to our strategy. What have we done the last couple of years? I would like to introduce quickly BOOST. That was our strategy program that was introduced by our management in 2023. A new CEO came on board in January 2023, and then he introduced BOOST because COVID and all the years after that also put us, I would say, rather solid company to quite a lot of problems. Overall, we thought that the program BOOST helped us to work against several market-driven topics. First of all, a weaker market environment, especially in China. We have in rail, especially a very, very strong China business. We saw that this was decreasing due to the autonomy policy in China. Then of course, increased costs after COVID with inflation, etc. We lost our Russia business from one day to the other. It was not huge, but it was very, very profitable. Overall, of course, it is always important to keep competition and the competition of the portfolio further, and that is why we implemented BOOST in 2023. I think this slide shows quite nicely the progress that we have made with consequent actions, especially on the profitability side, but also on other efficiency KPIs, for example, revenue per employee, etc. What was BOOST exactly, actually? We had the brownfield part, meaning cleaning the house, and the brownfield part had two parts as well. First was, SELL-IT. That means that we critically checked our portfolio and asked ourselves, okay, what businesses still fit to us, in the long term strategically, but also looking in profitability. After that analysis, we sold five businesses, three in truck segment and two in the rail segment. They were bringing revenues, but they were partly negative margin or very low, and we knew that we would never be able to bring them to the group margin that we would like to achieve. T hat was kind of portfolio rotation that we did. While we sold these assets, we also bought two really good companies. One was the signaling company in the U.S., and second, the electronic company also for rail last year with duagon AG. On the other side, we did FIX-IT. FIX-IT was actually about improving the operational performance. We optimized production structures. We eased processes. We made the organization more efficient and really focused on the cost structure. Just really quick, looking at the time, here you can see quite nicely that we faced some headwinds that was affecting our margin quite immensely. Then you see that BOOST really contributed nicely, and now we are entering the next phase, and it is about growth. That is why in July this year, we implemented our strategy program, Growth Beyond. The name was chosen, of course, on purpose because we would like to drive margin accretive growth going forward. Here, just wanted to show you what Knorr-Bremse has developed and where we see some growth chances going forward. Brakes, they remain our core business, and it is the fundament of our success. W e have sharpened our portfolio in the last couple of years with that portfolio rotation, and we have identified some growth fields that we would like to invest in. This would be signaling business and rail. This would be also energy technologies that we have had in our rail division for decades already, and this is now getting more exciting and more growing. A lso, we want to grow our aftermarket business going forward. What is Growth Beyond? We have actually four pillars that Growth Beyond is focusing on. First of all, we are focusing on our margin strong growth fields. I just touched on a couple of them before. That is a clear focus, what we want to do organically, but also potentially inorganically. Secondly, we want to secure all the efficiency gains that we did with BOOST, with consequent cost and working capital management. It is a clear priority. Thirdly, we want to strengthen our performance culture under the slogan, One Team. It is very important within KB internally also to lift further synergies here within our company. Fourthly, you see it below, of course, using digitalization and AI to accelerate among all business areas here. The result should be margin accretive growth, further margin increases, and outperformance of our end markets. Just really quick, regarding rail, what can you expect from us? We have identified six growth fields that we want to focus on, and you can see quite nicely the market is growing 3%-4% until 2030. With those identified growth fields, we want to outperform the market by a further 3%-4%. CVS is a little bit of a different story. We see great growth potential in the aftermarket business, but the overall market for trucks is, until 2030, expected to only slightly increase by 1%, you can see here. This is driven because of the fact that in 2029, there should be a certain pre-buy effect expected in the truck market, and that is why we expect here rather lower market volume, but we can still outperform with our aftermarket business. What are our goals? We want to drive revenue increase it to EUR 10 billion organically until 2030. We want to further increase margin to 16%. We are at 14% this year at the end of the year, and want to reach 16% by 2030. We have a very strict capital allocation policy that I want to walk you through here real quick. We have kind of three priorities. On first priority, there is always investments in organic growth in our own business via R&D of around about 6% revenues, CapEx investments of 45% in revenues, and also stable dividend policy of around about 50%, or at least stable. Second bucket would be M&A. Plays a big role for us, has always been interesting for us, M&A. With a third priority, and this has not in our focus, would be share buybacks or special dividends. What could you expect from us regarding acquisitions going forward? Very clear and disciplined approach here, that's for sure. First, we would like to focus on rail or truck core. Best case, we would buy a braking company, other one, but it's very difficult, of course, because there's none really that we can buy. Second priority would be rail and truck adjacent areas that fits to our portfolio, maybe regarding aftermarket business and stuff like this. With third priority, other growth fields that I just touched on, like energy technologies, for example, green technologies, stuff like this that would make strategic fit and also in terms of profitability would be a good fit for us. Here again, outlined our targets for 2030. Besides growth, we focus on profitability, of course, but also we have a high focus on ROCE. It should be above 25%. That means that we really want to have every invested euro to be as efficient as possible, of course. Also looking at cash generation, I think we have a really good cash flow generation within KB. The cash conversion rate by 2030 should be sustainably above 90% and reaching a free cash flow of more than EUR 1 billion in 2030. Okay, finishing my presentation now so you can ask some questions. I think Knorr-Bremse is in really good shape. We have exciting years ahead. We are not done with our margin increase. We are ready for the next phase, to enter a growth phase. Happy to answer your questions now if you have some. Thank you so much. Fantastic presentation. The first question is from Jürgen. "Do you have plans for electromechanical brake with recuperation?" Yes. Recuperation, of course, plays a big role regarding the electric trucks. We see that this is happening, but overall, the braking architecture remains the same, because you will always still need emergency braking. Everything that is connected with this, you need redundancy systems. Overall, recuperation will play a role also in terms of energy savings. Also in terms of in rail, we just presented at our fair an electromechanical brake. This is also probably the technology of the 2030s, of the future, we say. We are developing also in those fields. You talked a bit about strengthening the core business while also entering additional growth areas. W here do you see the most attractive opportunities beyond the traditional Knorr-Bremse portfolio? I have mentioned a couple of times the signaling business, for example. This is in the rail area. It is the wayside signaling, besides the tracks. This is really something completely new. We entered this in September 2024 when we bought this business from Alstom in the U.S., and we really like it. This is I think a really good example of what is there to add. Signaling is kind of an exciting field for us, because from the U.S. technology, we can grow organically into South Africa, Australia, India. There is some possibility. W e cannot grow organically into Europe, because it is a completely different technology, and it would take way too much time to develop it internally. I n terms of M&A, we would not shy away from a good opportunity to enter the wayside signaling market in Europe. This is exciting for us, clearly. Also, we see some opportunities in the freight segment of rail in this respect as well, because we focus more at Knorr-Bremse on passenger transit business so far. W e see also in China that there is great freight potential for us, but also in Europe. Those are just a couple of fields that we are excited about and want to drive forward. T he digitalization and software is becoming more important across the whole rail industry. Where can Knorr-Bremse create the most additional value from the data generation by its installed systems? Yeah, you are absolutely right. We believe digitalization and also smart electronics are really important going forward. We have some pilot projects already also in terms of condition-based monitoring, in terms of predictive maintenance topics, where we could also collect data about the product, about the shape of the product, about the overall shape of the rail car, for example. We are working closely together here with our customers and want to drive this forward absolutely. Also, AI can help here quite immensely, and we see good opportunities. Also in connection with our aftermarket business, by the way. With data, we collect, of course, the condition of several products or systems and can then also send new spare parts before they actually break. This will also increase availability and create new business opportunities for us. M aybe as the last question, because we only have a minute left, you recently highlighted the redundant braking and steering solutions for highly automated trucks. How significant could autonomous driving become a growth opportunity for Knorr-Bremse? All trends offer good opportunities for us because we can bring new content and more innovative products, and this means usually more money that we get for our products. Regarding the autonomous driving, yes, we focus on redundancy systems because once you take the driver out, you need a system that will for sure brake. We have highlighted quite nicely at the IAA a couple of weeks ago that in some extent, we will almost double the content that will go into the autonomous truck, and this is exciting for us. Same for e-mobility, by the way. Those trends come in certain steps, and we will benefit from all those steps and are on the forefront with our customers to shape those trends. Yeah, really excited about autonomous driving. Excellent. The time is up, exciting times ahead of you. Thank you so much for the presentation. Thank you. Have a good day, everyone.