Operator: Ladies and gentlemen, thank you for standing by. Welcome, and thank you for participating in the media, analyst and investor call regarding Porsche AG's H1 2026 results. This call will be hosted by CEO, Dr. Michael Leiters and CFO, Dr. Jochen Breckner. And now I hand over to Florian Laudan, Head of Communications, Sustainability and Politics. Please go ahead, sir.

Björn Scheib: So good morning, everyone. Welcome to our media, analysts and investors call of Porsche AG for the first half of 2026. My name is Björn Scheib, and I'm the Head of Investor Relations. And with me today is Florian Laudan, our Head of Communications, Sustainability and politics. Florian Laudan Thank you, Björn. Good morning, everyone. Before our CEO, Dr. Michael Leiters and our CFO, Dr. Jochen Breckner will give you an overview of our business performance in the first 6 months of this year, just a couple of words on the procedure. After the intro statement by Michael and Jochen, we will start the Q&A session with the analysts. Our separate Q&A session for journalists will be held in German, and that will start at around 9:00 a.m. Central European time. . You can find further detailed information online in the Porsche newsroom as well as on the Investor Relations website. I'd like to remind you that all forward-looking statements are subject to the risks and uncertainties mentioned in the safe harbor statement in our documents. With that, I hand over to Dr. Michael Leiters.

Michael Leiters: Good morning, everyone. I would like to welcome you to our call today. Over the next few minutes, we would like to give you a concise update on our business performance in the first half of the year. More importantly, however, I would like to discuss the actions we have taken to make Porsche strategically and financially stronger and more resilient. Over the past 6 months, Porsche team has worked on our Sportwagenschmiede '35 strategy with great intensity and discipline. Today, I would like to update you on the progress on the measures we are already implementing. We continue to operate in a very challenging environment and it is clear that Porsche cannot remain sustainably competitive with its current setup. However, the pressure has increased further, particularly due to geopolitical development. This means we need to act with even greater determination and accelerate our efforts in key areas. At our annual press conference, we announced our intention to comprehensively realign Porsche. This included revising our product strategy, streamlining our organizational and leadership structure and reducing costs across all areas of the company. Since then, we have consistently worked on these priorities and made important progress in each of these areas. Parallel to this, we have been developing our Sportwagenschmiede '35 strategy, the framework I outlined in broad terms at our Annual General Meeting. While we are still working through the details, we have already made a number of important decisions and these decisions prepare Porsche for the next phase of transformation and create the conditions for implementation. A key part of this is a sharper focus on what defines Porsche at its core, our sports car. For this reason, we have decided to sell our stakes in Bugatti Rimac and the Rimac Group. And as previously announced, we will also discontinue the operations of our subsidiaries, Cellforce Group, Porsche eBike Performance and Cetitec. We have also started to sharpen our portfolio and reduce complexity. As part of this, we have already made several product decisions that will allow us to capture additional opportunities in higher-margin segments. We will share further details as part of the overall strategy framework. As for the reshaping of our organization, I can say that our actions have followed our announcements here as well and very much according to plan from top to bottom. We have reduced the size of the Executive Board from 8 to 7 divisions. We are also continuing the renewal of our Board. After a long and successful career, Albrecht Reimold will retire from his role as a Board member for Production and Logistics. Over many years, Albrecht has made an outstanding contribution to Porsche. And I would like to personally thank him for everything he has done for the company. He will be succeeded by Christian Friedl, who has been responsible for the cross-functional topic of quality. I am very much looking forward to working with him. In addition, we have started to streamline our top management structure below Board level. As a result, a number of departments across the entire company are being merged or phased out. At the heart our Sportwagenschmiede '35 Strategy are 2 priorities: strength of our brand and the earning power of our company. The 2 go hand in hand. Our customers do not just buy a product. They also buy into our strong brand and the success story behind it. The main drivers for this are our products and innovations and our cost performance. Products and innovations are a longer-term topic. Right now, our focus is primarily on costs. For that, our recently presented Zukunftspaket or future package is one of the most important levers. The package combines long-term security for our sites in Zuffenhausen and Weissach with investments of up to EUR 2.1 billion and comprehensive measures to improve flexibility, productivity and competitiveness. It also includes a social responsible reduction of a further 5,000 positions by '35. Together with employee representatives, we have reached a good agreement that allows us to react flexibly to future challenges. In this context, it is also important to understand that Porsche is different to many of our peers. We operate in a premium luxury segment, are less dependent on China. At the same time, Porsche is deeply rooted in Germany, our brand and our production footprint are closely linked. That is why improving competitiveness at our side is one of our highest priorities. The progress we have made so far gives me confidence that we will achieve our goals. But there is still a great deal of work ahead of us to make Porsche robust and resilient for the challenges of the future. In the near term, the Zukunftspaket will require an incremental investment, which Jochen Breckner will explain in more detail in a moment. Looking at our financial performance in the first half of 2026, our disciplined cost management and our value over volume approach continued to show results. Despite the current challenges, Porsche remains in a very solid financial position. This gives us the stability and flexibility to shape the ongoing transformation on our own and terms and consistently implement our strategic realignment. Jochen Breckner will now take you through the details. Jochen, please?

Jochen Breckner: Michael, thank you very much. And also good morning, everyone, from my end. As Michael outlined, we signed the Zukunftspaket with our labor representatives 2 days ago, which is an important enabler of our Sportwagenschmiede '35 strategy. The agreed measures will streamline our organization through a socially responsible workforce reduction, broad-based compensation measures and initiatives designed to improve productivity, flexibility and efficiency. The related recalibration and organizational expenses are expected in the range of EUR 300 million to EUR 400 million in the second half of 2026. With that update on our strategic realignment, let me now turn to our financial performance for the first 6 months. In the first half, Porsche delivered more than 122,000 vehicles to customers. This is a decline of 16% and is fully in line with our expectations. Talking about wholesale, we sold approximately 121,000 units, which were down 11% year-on-year. This development primarily reflects product cycle effects, including the phaseout of the 718 and lower Macan volumes following the expiration of U.S. EV incentives. At the same time, demand for our core products remained robust with the Cayenne becoming our best-selling model and our icon, the 911 increased sales by more than 21%. Regionally, North America remained resilient. On the other side, China continued to be impacted by a challenging luxury market environment and intense competition in the BEV segment. Consistent with our value over volume strategy, we maintained a disciplined and value-oriented sales approach. This means we are balancing supply and demand while protecting pricing power and brand desirability. As a result, revenues amounted to EUR 7.2 billion. The decline of 5.1% is significantly lower than the decrease in our wholesales. This reflects the strength of our product mix, pricing and global footprint. Auto revenue per vehicle sales increased to around EUR 126,000, up approximately EUR 6,000 year-on-year. In addition, revenues in the Financial Services segment continued to grow. At the same time, Porsche continued to operate in a challenging cost environment. This is characterized by inflationary pressures, costs associated with a slower transition to electric mobility as well as elevated development expenses and depreciation. In addition, we recorded a net burden of around EUR 100 million related to our strategic realignment measures. This comprised approximately EUR 400 million of charges from ongoing realignment activities. These EUR 400 million were partly offset by around EUR 300 million benefit from supplier settlements which enabled the partial release of previously recognized provisions. The operating result also contains a burden of EUR 300 million to EUR 400 million related to U.S. tariffs. However, the disciplined execution of our Push-to-Pass performance program substantially mitigated these headwinds. Together with lower production volumes, this contributed to a year-on-year reduction in cost of sales by approximately EUR 1 billion year-on-year to EUR 13.8 billion. Supported by the strong mix in pricing as well as the improvement in cost of sales, group operating profit increased to EUR 1.35 billion. As a result, the group operating return on sales improved by 230 basis points to 7.8%. Importantly, our improvement in profitability also translated into a strong cash conversion. This reflects our disciplined approach to capital allocation and working capital management. Let me now turn to automotive net cash flow. Automotive net cash flow increased significantly to around EUR 1 billion in the first half of 2026 in comparison to around EUR 400 million in the same period in the prior year. Consequently, the automotive net cash flow margin improved to 6.7%, up from 2.4% a year ago. The strong improvement was driven by higher cash inflows from operating activities and lower cash outflows from investing activities, including significantly reduced cash outflows for capitalized development costs. The automotive net cash flow also absorbed around EUR 400 million of cash outflows related to our strategic realignment initiatives. These relate primarily to the first license payments to Audi. In addition, we paid around EUR 400 million related to U.S. tariffs. Despite these substantial one-off headwinds, our underlying cash generation remained very strong. This demonstrates the resilience of our business model. What is also worth noting, during the first half of 2026, we made an extraordinary contribution of EUR 250 million to the planned assets of our pension fund. This is further strengthening our pension position in line with our capital allocation policy. Let's now turn to our capital allocation and balance sheet development. In line with our disciplined capital allocation framework, CapEx amounted to around EUR 900 million in the first half. That is around 6% below the prior year level. Importantly, this figure includes approximately EUR 300 million of license payments to Audi. Excluding this one-off item, underlying CapEx declined significantly year-on-year. This underscores our continued focus on capital discipline and capital efficiency. R&D expenditure decreased by approximately 12% to EUR 1.1 billion. At the same time, we maintained our conservative R&D accounting approach with a R&D capitalization rate of around 44%. This continues to support the quality and sustainability of both our earnings and cash flow generation. As a result of our strong cash generation and disciplined capital allocation, automotive net liquidity amounted to a healthy EUR 7.3 billion. With that, let me turn to the outlook. First and foremost, I can confirm that our guidance for 2026 remains unchanged despite a continued challenging market environment, which is characterized by geopolitical uncertainties and persistent external headwinds. Our guiding principle stays the same, value over volume. As communicated in our full year guidance, wholesales are expected to decline versus 2025, reflecting the phaseout of the 718 and ICE Macan model lines. Base effects as well as the impact of U.S. tax incentives on demand for the all-electric Macan. Based on our current assumptions, second half volumes are expected to be broadly in line with the first half levels. At the same time, the ramp-up of the all-electric Cayenne is expected to drive a significantly higher BEV share in the second half of the year. As part of our comprehensive recalibration and strategic refocusing, R&D expenditure is expected to remain broadly in line with last year levels. Capital expenditure will increase year-on-year driven exclusively by the previously communicated one-off license payment to Audi of approximately EUR 1 billion in total. We still anticipate a group return on sales of 5.5% to 7.5%. As previously outlined, this guidance includes approximately EUR 800 million to EUR 900 million of net extraordinary burdens related to our strategic realignment as well as around EUR 700 million of tariff impacts. Our guidance also remains to expect an automotive net cash flow margin of 3% to 5%. This guidance is expected to absorb extraordinary cash outflows of approximately EUR 1.4 billion to EUR 1.5 billion, primarily related to strategic realignment measures. This includes the approximately EUR 1 billion license payment to Audi. Excluded from this figure are the cash outflows related to pension obligations. In addition, we expect tariff-related cash outflows of approximately EUR 700 million. Looking beyond 2026, the phaseout of the ICE Macan will be completed by 2027. Thus, we have to expect a decline of around 25,000 units. This development is expected to weigh on contribution margins and fixed cost absorption. The successor model is planned to be launched after the 2027 financial year. As outlined earlier, we have reached important agreements under the Zukunftspaket and expect organizational recalibration measures to extend into 2027. Consequently, we currently expect associated charges in the low triple-digit million euro range next year. We are confident that these investments will strengthen Porsche's competitiveness and long-term earning power. With this, I hand over to Michael. He will outline the strategic framework supporting this trajectory. Thank you very much.

Michael Leiters: Thank you, Jochen. Over the past months, we have made important decisions and put essential elements in place. The Zukunftspaket is an important milestone in this process and it creates a basis for the next phase of Porsche's transformation and for the implementation of our Sportwagenschmiede '35 strategy. As we move into this next phase, the focus is increasingly shifting to the 3 strategic pillars I outlined at our Annual General Meeting. The first pillar is our brand and our customers. We remain committed to our value over volume approach and will continue to strengthen desirability, pricing power and the long-term value retention of our products. Our response to changing market conditions in China is a good example of this approach in action. The second pillar is our product and technology strategy. We are sharpening our portfolio, reducing complexity and focusing even more on the areas where Porsche can clearly set itself apart while continuing to invest in products that excite our customers. For example, in the United States, we have streamlined the Taycan portfolio by removing 2 body variants in line with customer preferences. And the third pillar is enterprise and operations. To improve our margin structure, we need a competitive cost base across development, procurement, production and sales. This means reducing complexity, improving efficiency and systematically leveraging scale and synergies where it makes sense. The most important proof point is the Zukunftspaket. These 3 pillars are built on a strong foundation. The Zukunftspaket also contributes to this foundation. It consists of a leaner organization with simplified management structures and a sharper focus on our core business, a high-performance team culture and an even stronger focus on product and service quality while systematically reducing quality-related costs. We will provide a comprehensive view of our Sportwagenschmiede '35 strategy and Porsche's long-term direction at the upcoming Capital Markets Day. We will outline the broader strategic framework behind our measures and discuss in greater detail how we intend to strengthen Porsche's earnings, cash generation and resilience over the coming years. With that, Jochen and I are happy to answer your questions.

Björn Scheib: Thank you, Dr. Leiters. Ladies and gentlemen, we will now have a short break. Afterwards, the Q&A session for the analysts and investors will start. The Q&A session for the media is scheduled for 9:00. Please stay tuned. [ Break ] And we are starting with the Q&A session by analysts and investors now. First in the row will be Patrick Hummel of UBS. And thereafter, we will have Tim Rokossa of Deutsche Bank.

Patrick Hummel: Perfect. Can you hear me, Björn?

Björn Scheib: Yes, very fine. Thank you.

Patrick Hummel: Okay. Excellent. It's Patrick from UBS. I would like to zoom in a little bit into the Zukunftspaket. I'm not sure what you can share at this point, but even if only qualitatively, I would like to better understand the phasing of the cost savings because the headline 5,000 head count reduction by 2035, it sounds like a very, very, very long time span. And I think what matters to us in the financial community is the bottom line impact that we can reasonably expect to see over the next, say, 2 to 3 years. So if you can just give us a certain level of guidance here, even if qualitatively, how quickly those savings you expect from Zukunftspaket to kick in. Also, if you, of course, can comment on the targeted run rate of savings, the real bottom line impact that you expect from this exercise over the next 2 to 3 years, that would be greatly appreciated. And -- just Jochen, 1 clarification question. You said this Zukunftspaket related charge next year is going to be a low 3-digit million number. Is that basically what we should expect for the entire strategic realignment buckets, so going down from the EUR 900 million this year to just about, I don't know, EUR 300 million next year? Or could there be other items in that strategic realignment bucket that stretch beyond the Zukunftspaket charges?

Jochen Breckner: Yes. Patrick, thanks for the questions. I'm happy to answer this. Let me start with the Zukunftspaket, which is really meaningful measure and program for us in running our strategic realignment and also our strategic reorganization of the company. The Zukunftspaket is focusing on various measures. One is the reduction of our workforce by an additional 5,000 employees, but we are also focusing on reducing personnel costs, increasing productivity and increasing flexibility. We expect that this program will generate a multibillion euro saving through 2035. That is the time until when the full Zukunftspaket is agreed on with our works councils and also the unions. When it comes to the positive effects, which, again, are meaningful, we expect that these will be in the steady state, a mid-triple-digit million euro effect that you will see in the P&L and also on the cash side. Talking about the one-offs that we have to invest into running this program. And we expect, as I said, a lower 3-digit burden in 2027 on top of what we have in 2026 to organize, especially the reduction in the workforce. When it comes to positive effects, given the burdens in '26 and '27, we expect that we will have a first meaningful positive effect in 2028. In 2027, we will see rather balancing of the investments we have to make and the first positive impacts that will be there as well. Now on a strategic realignment in 2027. The biggest part, of course, is the restructuring from the Zukunftspaket. When you look at the other items, we changed our product strategy, and that's something that is ongoing, changing the cycle plan and our product portfolio. There will be some more items in that category. But when it comes to the other things that we were mentioning like focusing on the core and the other aspects, our perspective is that we will be mainly through in 2026.

Patrick Hummel: So we'll see a significant decline of that item, the strategic realignment next year.

Jochen Breckner: Yes, yes, starting off 2027.

Patrick Hummel: Yes. Okay. Perfect. And Jochen, if you allow me to follow up on the mid-3-digit million effect on earnings that you have in mind, I guess that was not a 2035 target, hopefully. So could you just give us a bit of additional visibility how quickly you're going to see that hitting the P&L?

Jochen Breckner: I mean we will see in the steady state, the number or the range that I mentioned and also said that we will have first net-positive effect in 2028 and then the effect to build up. So it's not a 2035 number, it will be earlier.

Björn Scheib: So next in the row then will be Tim of Deutsche Bank. And after Tim, we have Horst of Bank of America. Tim the line is open.

Tim Rokossa: Can you hear me, Björn?

Björn Scheib: Yes, very fine.

Tim Rokossa: Good. All right. Tim from Deutsche. Michael, Jochen and Björn. I have 2 questions, and I'm afraid they go into roughly the similar direction it's obviously the key stuff to ask about today. First of all, Michael, and obviously, also to you, Jochen well done on seemingly getting a package agreed upon with the relevant stakeholders without at least by former VW standards, a lot of external noise. Now, obviously, we are very interested in the details. I understand you don't want to share those between October -- until October 7. But let's talk about also the broader picture here, Michael. When we think about this business, Porsche itself, is this a 200,000 units business? Is it 250,000 units business? Do you want to be present in China? Do you not want to be present in China? And what sort of margin do you think this business should ultimately make? Are we talking rather about 50% or about 20% plus like we have discussed it in the past? And secondly, Jochen, I guess, this goes rather to you. You already gave us a few of the moving bridge items for H2 and then also into '27. Can we talk a little bit more about it, please? Should we expect that Q3 is the seasonal low point like it often is in the year? Will Q4 be stronger again? How should we think about the 911 share in supporting your results specifically, obviously, when it comes to EBIT margin and free cash flow. As you know, that's typically what we care about most.

Michael Leiters: Maybe I start with 2 points you mentioned. First is about the business and the business size. Please forgive me if we don't go in detail right now. We will give you the targets in CMD. The only thing I can say that we want to reduce our target picture significantly versus the original planning the company had that was, let me say, 350,000 and more. And this is definitely much lower what we are rescaling here in the company. Also, the long-term ambition, it's not changed. We always said 10% to 15% in the long term, but all the details on short term and midterm, we will share with you in the Capital Markets Day. Let me comment on China. China is still an important market. Yes, it's a very volatile environment, very challenging conditions there right now, but it's still an important market for us. We will plan China in a very conservative way that we can, let me say, or have a yes, solid foundation there in the market. So we won't be too positive on that. Again, on that part, we will respond to you more in detail on the Capital Markets Day. Jochen?

Jochen Breckner: Tim, you are asking for a bit more visibility into the H2 of the current fiscal year. As I said, we confirm our guidance, both in terms of return on sales, but also in terms of net cash flow margin. And given the performance that we've seen in H1 with 7.8% return on sales and above 6% of net cash flow margin, it's obvious doing the math that the second half will be a bit weaker than the first half. Most important point is that when it comes to the extraordinary expenses, we had a net effect of around EUR 100 million in the first half. And for the full year, we see EUR 800 million to EUR 900 million. So there's an additional EUR 700 million to come. The biggest portion of that one is related to the Zukunftspaket related to the reduction of the workforce. Second, when it comes to the operational business, 911 remains healthy and has a strong and robust demand driven by -- I mean, driven by all the models, but the Tudor S is still a fantastic car at the top end of the car, also the GT3 SE is a fantastic car with a very healthy demand that is helping. Although on the other hand, we are ramping up our full-electric Cayenne, which is also a fantastic car. But as you know, from a margin perspective, it's a bit dilutive. And we expect that our BEV share will increase to the guidance that we have given up to 25%, 26% potentially from the roughly 20% we had in the first half. When it comes to cash, again, one-off effects are bigger in the second half of the year. And this really comes down to the license payments for our SUV strategy to Audi, the full number is EUR 1 billion or around EUR 1 billion, and we've paid EUR 300 million so far. So there's another EUR 600 million to EUR 700 million to come in the second half, which will add some burden on the cash flow statement.

Björn Scheib: Yes. Very good. So next in the row then will be Horst of Bank of America. And after Horst, we will have Christian from Goldman's.

Horst Schneider: Yes. Can you hear me, it's Horst here? Okay. Can you hear me?

Björn Scheib: Horst, please go ahead.

Horst Schneider: Yes. It's Horst Schneider from Bank of America. The first one is on the product mix, to me, a key highlight in the H1 results is this we see basically what margin you can do or how quickly the margin can recover if you steer the product mix in a certain way. So what we have seen is strong 911 sales, low EV sales, you point now to the Macan phaseout defect in H2. I want to know basically what we should expect now for the 911 going forward, going to -- the sale is going to be structurally higher or we see rather a weak H2 for the 911. And why don't you try to limit now structurally the EV sales because that seems to be in the end the boost to the margin. It's maybe also related then to the CO2 regulation that you have to push it in H2, but maybe you can comment on that. The second question that I have is more structurally on cost as well and the outlook for H2. So when I do here my forecast, and I try to forecast the H2 margin, Jochen maybe you can outline what we should expect for certain items. So for example, R&D capitalization, FX impact, raw material price impact, supplier cost compensations.

Jochen Breckner: Okay. Horst, thanks for these questions you were raising. Talking about product mix, 2 dimensions there. Of course, 911 is our icon in terms of product, in terms of desirability, but also from a financial perspective. Perfect car for our business model. We've seen in the first half of the year, a very, very healthy demand with the 2 models I was highlighting just in my answer that I gave to Tim's question with the Turbo S and also the GT3, very, very healthy, fantastic demand. There's also a bit higher order intake and sales than we usually have. We will expect a normalization in the second half of the year. But having said that, let me emphasize on a very healthy and successful level, we expect the 911 to be a steady contributor to our sales mix and, therefore, profitability that we expect for our business model in '26, but also going forward. When it comes to the BEV sales, yes, BEV cars are dilutive to the margin. That's clear. That's not a secret, but limiting these cars. Once they are developed in the market wouldn't make sense in from a contribution margin perspective, with the incremental money we can earn, they are still giving us additional margin, additional profit and also fixed cost coverage. So therefore, limitation of BEV cars would not be a good idea in terms of the financial performance. Yes. And then H2...

Horst Schneider: Jochen, sorry. 911, it can be above 50,000 this year, right? You're not limiting yourself to that 50,000 unit sales on the 911.

Jochen Breckner: No, no, no. We are not limiting ourselves below such a number. We've already sold more than 50,000 cars in the past. And that's following our strict value over volume and balanced demand and supply strategy. So as long as there is some healthy demand there as long as we have waiting times for our cars and a bit of scarcity in the 911 segment that we want to have, we will sell these cars and we do not see below 50,000 cars this year. Yes. For the second half of the year, I also commented on some of the special effects, extraordinary items. FX will be stable compared to H1 R&D, slightly higher potentially given seasonality effects following the development work for our cycle plan and the future strategy. And also when it comes to raw materials, we will not see a changed effect in the second half compared to what we have in our books in the first half.

Horst Schneider: And the capitalization goes up as well. You talk about expenses, right, not expenditures, R&D wise.

Jochen Breckner: I'm talking about expenses. We are sitting on a capitalization rate 44% in H1. And as you know, the capitalization rate really follows the milestones and the quality gates that we have in our program. So there's also some extent of volatility there, but no major changes expected throughout the course of this year. When it comes to CapEx, maybe Horst, whether that was also a question, CapEx itself will go up based and really coming down to the Audi payment or the second installment of the Audi payment that we will have in our books in Q4.

Björn Scheib: So next in the row then will be Christian of Goldman. And after Christian, we have Jose of JPMorgan.

Christian Frenes: Yes, Can you hear me?

Björn Scheib: Yes, we hear you loud and clear.

Christian Frenes: Just obviously, I can only second that the interest is in the Zukunftspaket, I understand that not much can be said at the time. But 1 question I do have on that subject is in terms of -- now that you've signed Zukunftspaket. Is that medium-term target of 10% to 15% operating margin target, is that under review at least ahead of the Capital Markets Day?

Jochen Breckner: Christian, thanks for raising that question again. First, we will talk about the strategy and also the financial perspectives for the mid and long term on October 7. So again, we kindly ask for a bit more patience just a few weeks to go. Yes, no problem. Just -- yes, I need to ask for your understanding and forgiveness that I have to answer it that way. We will be more precise on October 7. And of course, the Zukunftspaket will contribute to our margin resilience. But as you know, there are a lot of effects out there in this world with China, with the BEV trend, with supplier costs, et cetera. So there are also burdens that we will have to take care on. So you should not only expect positive effects once we do the consolidation and communicate to you on October 7.

Christian Frenes: Okay. And then some other questions more product related. There was some discussion in the press of shifting the Cayenne from Bratislava to Leipzig recently. What -- how significant would a move like that be in terms of fixed cost absorption or just the net effect of it?

Michael Leiters: Maybe I take this question. So this is still ongoing investigation we are having. And this is to optimize or we are looking at it to optimize our utilization in Leipzig. But I have to say we have already in the plan a very good utilization in Leipzig. So this is only, let me say, an additional. It could be an additional opportunity, but we are still in investigation together also with the group because we have to find the overall best solution for both of us, Porsche and the group.

Christian Frenes: Perfect. And then lastly, just on the eCayenne, could you elaborate on what the order trends you're currently seeing? Just any commentary about the outlook and the ramp and just trying to assess where volumes could go for the eCayenne in '27. And then lastly, on the K1, is there any scope to accelerate the launch timing of that project?

Michael Leiters: So maybe I'll take that question again. So we are really happy with the first order intakes we are having. Obviously, we expected that a little bit because the car is really great. And the first customer response is also fantastic. And we are delivering cars, Cayenne as electric Cayenne since end of June. Again, strong order intake, main markets, definitely Europe, and we expect in the last quarter of this year, let's say, around 70% in ICE as Cayenne and 30% as in BEV. And then regarding K1, we are exactly on the plan and on the timing. And yes, more details for that eventually on the CMD.

Björn Scheib: So next in the row then will be Jose of JPMorgan. And then we have Stephen of Bernstein.

Jose Asumendi: Two questions, please. I think the first one just goes back to the topic of sales by region and China and whether you're seeing stabilization of sales and deliveries in the region or do you expect another maybe further step down in the second half of the year or maybe early '27 with the discontinuation of some vehicles. But then as you introduce new vehicles, sales could pick up maybe second half of '27. And second, Michael, it goes back to you, and I think the early discussions we had at the beginning of the year when you were realigning or starting to basically build measures to realign the group. From your perspective, and we've seen a lot of announcements. We've done a lot of announcements, I think, in the last weeks also on the personnel front. Have you done the necessary changes already to adjust the business model when it comes to capacity, service and distribution in the business? And with the actions you have announced so far, has the business model been currently set to address the current volumes Porsche is delivering?

Björn Scheib: Jose, do I rightly understand that your question is again about capacity and the breakeven level? And the first one, as far as we understood is about our China business.

Jose Asumendi: Yes.

Michael Leiters: So I'll try to answer, but I have to be honest, I didn't catch the entire question because acquisitively, it wasn't easy to understand you. So let me answer to China. There's -- I wouldn't say there is a calming down of the development in China. It's still a very challenging environment, and it's looking from, let me say, month to month. But again, we are taking a very conservative view on China, and we are focusing on value over volume. So -- and let me point out also another thing. We are, let me say, very flexible in China. We don't have any obligations in the market itself, so we can react here over our capacities and our production program quite flexibly from Europe. I think in this time phase, this is actually -- yes, not having a site in China is an advantage for us. And then regarding the adjustment, I mean, the Zukunftspaket is a huge step to adapt our scaling of the organization. And -- but there's still a lot of work to do first to realize this scaling. And then as Jochen said, we have to rescale also the whole environment around us here. So it's not only about Porsche, but also about the supply chain and all the other contributors we need to work on.

Björn Scheib: Next in the row will be Stephen of Bernstein. Then we've got Stuart of Oxcap.

Stephen Reitman: Steve Reitman from Bernstein in London. I'd like to go back to a comment that was made about the replacement for the ICE Macan. I think it was actually said that it will be launched after the '27 business year, so obviously, in 2028. I want to ask maybe Dr. Leiters. I think when you -- it was announced that you were joining the company, I think there was some hope that obviously you would bring your experience not only from Porsche, but from your subsequent appointments at Ferrari and at McLaren, moving fast with less resources, bring things quicker. Obviously, models take a certain amount of time to develop anyway. But could you talk about what you've been able to do in terms of speeding up development processes at Porsche because I think that is one of the key issues about fixing the sort of gaps in the product line. We've seen what you've done a lot in terms of streamlining the business and getting rid of ancillary businesses, which were no longer relevant to the company and particularly also in batteries as well. But if you could talk more about how much -- how you managed to change the development process or to bring things -- make things come to the market quicker, please?

Michael Leiters: Thank you, Steve, for the question. So first is let me give you a number. The Macan will be developed in 30% less development time than a usual car in Porsche, okay? So I think this is a big commitment and a huge step for Porsche. And we are analyzing our product development process and the product development process of our competitors as far we have information about that. But obviously, also over the group and obviously over China information, we can do that, and we are still working on that. We will show you on the CMD. But let me point out also one thing because sometimes we get criticized not only us but also the German industry. We have to consider that the first thing is the right product. And we are working on this car, first of all, to give the full Porsche experience. And that means also that sometimes we have to change things and not only carrying over things from an existing platform. So that is also a trade-off we as a company have to do between development time, cost for development and the right product substance. And that actually is also something you mentioned my previous experiences, which we have done there also in a very successful thing -- way, sorry.

Björn Scheib: So next in the row then will be Stuart of Oxcap. And after Stuart, we are having Henning of Barclays. So gentlemen, as we are planning to move over to the media Q&A at around 9:00, please take it brief so that potentially we can also squeeze in Daniel of Metzler after you.

Stuart Pearson: Okay. Thanks, Björn. This is Stuart Pearson from Oxcap. Just very quickly on the CapEx side. I think you mentioned at the start, there will be product plans would require incremental investment. But CapEx is obviously very light in Q2, especially ex any Audi payments there. So I just wonder when we think about your strategic plan, would there be a period of higher investment from a CapEx that we need to think about and just factor into our cash flow assumptions? And then just secondly, on the back of that, I know you -- there was a question about the Cayenne potentially coming back. You talked about focusing on boosting your utilization. But would you consider or could you even rule out that you might build a product for a non-Porsche brand in any of your facilities?

Jochen Breckner: Stuart, thank you very much for the question. I'll start with the second one because that can be answered probably at this point in time a bit easier. As of now, we do not have plans to produce a car for another brand. Outside of the group, you know that we are exploiting synergies within the group, and we are already producing Bentley cars, not full cars, but the body-in-white for the Continental family and also the Flying Spur. So these things are part of our strategy, but not for external brands or even competitors.

Stuart Pearson: I did mean within the group with Audi, for instance.

Jochen Breckner: Yes. I mean, as of now, it's Bentley. There might be additional synergies, but we decide when the time is there to take these decisions and to see whether these make sense and whether these create win-win situations for both brands. When it comes to CapEx, in our Strategy 2035 and also our financial plan, we will see lower CapEx throughout the years. We're optimizing our capital allocation, both in terms of CapEx and R&D, and we will reduce that step-by-step given the effects that we have from the strategy, Sportwagenschmiede based from faster development processes, but also based on the updated product program and reduced complexity that we plan to have, which will also give us some tailwinds in terms of optimizing the CapEx investments that we will see over the years. In short, we will make more out of less. That's our strategy.

Stuart Pearson: It was a good plan.

Jochen Breckner: Yes. Thanks.

Björn Scheib: So next in the row, then we'll be Henning and then we also squeeze in at the end Daniel. And for the others in the row, we have not forgotten you. We will see how long the media Q&A will take and then potentially, we get the chance to take you in the end.

Henning Cosman: Yes. Thank you, Björn. Good morning, everybody. Just a few clarifications, please. Jochen, I think the first couple go to you. Relative to the net EUR 800 million, EUR 900 million extraordinary charges this year, I understand you're saying that the charges will go down next year. Can you just clarify or perhaps you can give us a number between the additional charges and the carryover of the existing charges, what the combined effect of everything is in extraordinary charges next year. So not just the new ones or not just the old ones, but the total relative to the EUR 800 million to EUR 900 million. Second clarification is on the supplier compensation costs. You were obviously able to release the provision there, which I suppose suggests you're outgrowing that perhaps also a bit quicker than you had originally assumed. It is all possible to give us trajectory there as well? What was it in -- or what is it going to be in '26? And how much is that coming down in '27? And then both of these combined with your statements or emphasis of the decline in the Macan next year. Are you trying to tell us that we need to brace ourselves for a margin decline in '27 versus '26. It's not guidance day today, but does the lower supplier compensation charge and the lower realignment charges, does that offset the lower fixed cost coverage? It's broadly similar? Or you're asking us to brace ourselves for decline?

Jochen Breckner: Henning, thanks for the questions. Again, I'll start with the last one, and I fully agree, it's not guidance day today. So yes, we can't go into too much detail on that one. But you are right, we expect lower volumes in 2027. And of course, given the per unit margins that we have in our product portfolio, this is an impact that we have to take care of. The reduction of the sales one is mainly driven by the run out -- final run out of the ICE Macan. We stopped the production in summer 2026 just a few weeks ago. The pipeline is filled with as much cars or as many cars as we could produce, but sales-wise, there will only be a few left in 2027. So that's the effect that we have to take care of. When it comes to the extraordinary payments. That was your first question in 2027. I commented that we will have a low 3-digit -- triple-digit number in 2027 for the Zukunftspaket for the reduction of the workforce. That is something that we will have to take care of that will be a burden in 2027 when it comes to the other aspects of the strategic realignment we do not expect major effect in 2027. So the total number, and we're still doing our budget for next year will be substantially lower than the EUR 800 million to EUR 900 million that we have in this year's guidance.

Henning Cosman: And on the supplier compensation, please?

Jochen Breckner: Yes, supplier compensation. When it comes to real compensation, we try to settle everything as fast as we can, but our colleagues do that also wisely and in the best sense and efforts for the company. So there is a very dedicated and diligent negotiation strategy with our partners in the supplier base. So that we see when do we settle things, how can we combine it with future nominations that we have for our program. So that's something that will also phaseout over time. But what will stay is the elevated material cost that we have, especially in our BEV programs given the fact that we have much lower volumes in our plannings than originally planned. That's something that will stay throughout the few years to come.

Henning Cosman: So no major relief in '27 versus '26 from that bucket.

Jochen Breckner: No, no major relief. Yes.

Björn Scheib: Last in the row now will be Daniel of Metzler. Daniel, the line is open.

Unknown Analyst: First is on management compensation. Will the KPIs be adjusted to fit to the new strategy, for example, the ESG targets that you're now selling fewer best than initially planned or the minimum threshold for EPS and EBIT margin? And do you make adjustment to the compensation to your top managers below the Management Board, it that more linked to the share price, cash flow or other KPIs? And just a quick question on the cost headwind in '27. The amortization is now exceeding capitalized R&D quite a bit. So R&D accounting is a headwind. The intangible asset base is declining. Do you expect amortization to grow in '27? Or is it peaking now and the tailwinds in the coming years?

Jochen Breckner: Okay. Daniel, thanks for these 2 questions. First 1 was on management compensation. We have not changed the compensation system structurally. So the incentives are still based on ROS or net cash flow margin and all the ESG factors that you are aware of. But what we see is that based on the Zukunftspaket, we agreed that we will also reduce fixed payments for the managers, so they will also contribute to the effects of the Zukunftspaket. that's one. And second is that given the fact that we have not changed our compensation structurally, but we have a performance which is a bit lower than initially expected. We see the effects that you can see also in the 2025 report for the Management Board, for example, that you see how the system works and how it reacts as a variable compensation and incentive measure. Now on the amortization side, given the asset base that we have that is substantially or step by step reduced over time, we see elevated levels of D&A that will remain over the next years to come. As you can imagine, that will give us some tailwind in terms of our cash generation, the strength that we have and that we expect, especially in the midterm of our strategy. But for the short term, D&A will weigh on our profitability and therefore also on return on sales.

Björn Scheib: So thank you very much. With this, we finish up with the analysts and investors. And after a brief break, then we move over to the Q&A session of the media.