Operator

Good morning, ladies and gentlemen, and welcome to the Elmos Semiconductor SE conference call regarding the Q1 2026 results. [Operator Instructions].

Let me now turn the floor over to your host, Dr. Arne Schneider, CEO.

Arne Schneider
CEO & Member of the Management Board

Ladies and gentlemen, good morning, everyone, and welcome to the Elmos Conference Call for the First Quarter 2026. Thank you very much for your participation and your interest in our company.

Ladies and gentlemen, Elmos had an impressive start into the new year with strong sales, improved profitability and significantly higher free cash flow. In fact, as reflected in last night's ad hoc announcement, we have raised our full year 2026 guidance, driven by strong first quarter performance and sustained high demand for Elmos products. The impact that may come from the allocation are not yet fully reflected. We will incorporate that piece of good news as it materializes step by step.

Our strong operational execution since many quarters significantly improved cash generation and enhanced capital allocation. Combined with more transparency at our successful Capital Markets Day in February this year, has driven a sustained increase of the Elmos share price in recent months. Year-to-date, the share price is up around 90%, bringing the company's market capitalization to nearly EUR 3.3 billion.

Based on this strong momentum, Elmos could potentially even qualify for inclusion in the MDAX, Germany's mid-cap index, potentially even at the next review in early June. If we were to