Stabilus SE Q&A Session on Adjusted Forecast for FY2024 Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Stephen Reitman - Sanford C. Bernstein & Co LLC - Analyst : Yes. Thank you very much for doing this call. Looking at the reduced call-offs on the automotive side, the EUR50 million that you've identified, could you give -- be a bit more specific about how that split between gas springs and Powerise. What I'm trying to find out is, has there been any decontenting from customers looking at trying to reduce the cost of their vehicles for consumers and trying to make them more affordable? Or is it just purely just a reduction in overall volume? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 13, 2024 / 8:30AM, STM1.DE - Stabilus SE Q&A Session on Adjusted Forecast for FY2024 Call

Question: Akshat Kacker - JPMorgan Chase - Analyst : Two questions, please. The first one on growth. So I just want to clarify the near-term comment. I think you mentioned some kind of weakness in China as well. Can you just give us more flavor in terms of what's happening in that market, or what are you seeing in Q3? And the second link question on growth is, I hear you when you say these are temporary impacts, and you're confident about the structural growth drivers. On that point, could you just help us clarify a few points around Powerise opportunity in China? Do you still see a growing order book and growing revenue potential in that market when you think about tailgate? But also, if you could give us some more flavor on door actuators, how is your order book developing there? And what is the revenue potential for Stabilus, three, four, five years later? That's the first question on growth. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 13, 2024 / 8:30AM, STM1.DE - Stabilus SE Q&A Session on Adjusted Forecast for FY2024 Call The second question is on margin. So when I think about 2024 and if I remove DESTACO from the financials and the midpoint of your guidance, you're basically talking about a flat revenue development. And there is incremental margin pressure on the business of around 100 to 150 basis points. So two questions within that. One, when do you expect the North American margins to recover? And second, do you still have a target, a specific timeline to get back to the 15% margin corridor?