While the company reported an adjusted EBIT margin of only 4% in the first half of 2023, S&P Global Ratings expects it to benefit from a catch-up effect in the second half after passing higher costs on to customers. Lower ramp-up costs on new projects that have now been launched will also provide support. The company is working on reducing overdue receivables from customers and inventories, but sales growth could result in working capital outflows of up to €500 million this year. We anticipate FOCF at the lower end of our expected €0.8 billion-€1.0 billion range. We assume ZF will receive a cash inflow of about €500 million from Foxconn in 2024 at the latest, after the latter?s acquisition of
