OPmobility (OPM) Status update summary

2026 objectives

• Revised targets reflect weaker automotive conditions, persistent inflation and lower production forecasts: operating margin €430m–€450m and free cash flow above €220m.

• Year-end net debt targeted below 2025, alongside a significant net result attributable to shareholders.

• Q3 and FY 2026 sales expected to exceed 2025, with performance above the market overall.

Market drivers and outlook

• Forecasts revised down particularly in China; customer activity adjustments are concentrated in Europe, while capacity development accelerates mainly in North America and Asia.

• Pressure reflects inflation, volatile resin and PCB costs, weaker production trends in China and sudden shutdowns affecting Europe and North America.

• Raw materials and volume impacts weighed on margins; exterior and module activities, mainly in Europe, were more affected than C-Power. Contractual pass-through covers much, but not all, of the costs, with recovery timing uncertain.

• Production assumptions combine external forecasts with program-level and OEM assessments, leaving headroom for potential risks.

European competitiveness measures

• Consolidate French powertrain R&D expertise at Lachelle and retain Sigmatech; adapt Alphatech in Venette and Labège amid weaker development activity, cancelled hydrogen projects and slower market growth.

• Contemplated Sterbfritz closure and transfer of activities to other German sites; adapt capacity at Flers-en-Escrebieux in France.

• Measures affect 460 positions in Germany, mainly production, and 310 in France, mostly R&D engineering; implementation is to proceed through social dialogue.

• 2026 restructuring costs of €120m–€130m are expected, with the major cash impact in 2027; measures aim to improve asset utilization, competitiveness, margins and medium-term cash generation.