A：The first quarter of 2026 exceeded expectations, driven by strong sales in March, operational performance ahead of plan, supported by solid productivity improvements. Sales grew in March, and the positive trend in Asia continued with strong growth in India, South Korea, and China.

A：The regions that experienced sales growth in the first quarter were India, South Korea, and China. In China, sales grew organically, reflecting the trend of increased safety content in vehicles and the continued high level of light vehicle production. Additionally, in India, sales grew by a significant amount, mainly due to increased safety content and the high level of light vehicle production.

A：The company is continuously monitoring the potential wide-reaching impact of hostilities in the Persian Gulf on the industry but has not specified the impact in the transcript.

A：The company reiterates its full year 2026 guidance of flat organic sales and continued significant outperformance of light vehicle production in China and India. They expect an adjusted operating margin of around 10.5% to 11%, based on the assumption of a 1% growth in light vehicle production and a gross headwind from raw materials of around 19 million US dollars.

A：G&A net costs rose year over year due to negative currency translation effects, lower engineering income from timing of specific customer development projects, and non-recurring costs. The D&A net cost increased by 16 million US dollars, mainly due to negative currency translation effects, higher personnel costs, and non-recurring costs of 4 million US dollars.

A：Market development impacted sales positively, with a decline in global light vehicle production being partially offset by strong performance in Europe, especially in March, and rest of Asia. The global regional light vehicle production mix shifted favorably, which contributed to the company's performance.

A：In China, the company's share of sales increased to 80% from 17% a year ago. India now represents almost 6% of the company's global sales, which is almost triple its share three years prior, driven by regulatory focus and consumer demand for safety features in vehicles.

A：The company's market share grew with China representing 80% of sales, compared to 17% a year ago. India's share of global sales tripled to almost 6%, while other regions included Asia excluding China (20%), Americas (31%), and Europe (30%).

A：The net sales for the first quarter of 2026 were almost $2.8 billion, representing a 7% increase. Gross profit increased by $48 million, and the gross margin increased by almost 60 basis points. The adjusted operating income decreased from $255 million to $245 million, and the adjusted operating margin decreased from 9.9% to 8.9%. The reported operating income was $237 million, which was 8 million lower than the prior year. The adjusted earnings per share diluted decreased by 10 cents, and the adjusted return on capital employed was 23%, with an adjusted return on equity of 24%. A dividend of 87 cents per share was paid in the quarter.

A：The adjusted operating income in the first quarter of 2026 decreased by $10 million compared to the prior year. Operations contributed positively by $13 million, primarily driven by higher organic sales and the successful execution of operational improvement initiatives. Excluding the $13 million from currency translation effects, costs for R&D and SG&A increased by $28 million. The increase in R&D costs was mainly due to lower RVM reimbursements of $9 million and a nonrecurring cost of $11 million. During the quarter, the company recovered approximately two-thirds of its U.S. tariff costs, but the recovery rate was lower than the prior year due to delays from the implementation of the new U.S. administration's import adjustment program.

A：Operating cash flow for the first quarter was negative $76 million, a decrease of $153 million year over year. This change was primarily due to a negative working capital effect of $349 million, compared with a negative impact of $179 million in the prior year. The working capital effect was largely driven by higher end-of-quarter sales, which is a good reason. Other temporary effects that are expected to reverse later in the year and the normalization of payables from the year-end Ed capital expenditures net for the quarter decreased by $100 million. The lower level of capital expenditure net is mainly related to lower footprint optimization, less capacity expansion, and timing effects. Reoperation Cash flow for the quarter was negative $159 million compared to negative $16 million in the same period in the prior year.

A：The company's capital allocation strategy aims at annual share repurchase of $300 to $500 million through 2029, supported by a quarterly dividend since initiating the property program in 2022. Through this strategy, the company has reduced the number of outstanding shares by almost 15%. When executing the program, the company considers several factors, including its balance sheet, cash flow outlook, credit rating, and general business conditions. The company has consistently delivered positive operating and free operating cash flow, which reflects disciplined working capital management, a flexible cost base, and limited capital intensity of its operations, supporting higher asset return and durable long-term growth. Over time, the company has generated strong shareholder returns, including the spinoff of BAE Systems to shareholders valued at approximately $3 billion at the time.

A：The company expects global light vehicle production to decline by 2% in 2026 compared to 2025, with a 1.5 percentage point downward revision from the January forecast. The downgrade is largely attributable to production cuts in the Middle East and other regions impacted by hostilities. European light vehicle production is expected to decline by almost 2%, driven by affordability challenges and rising imports from China. North American light vehicle production is forecast to decline, despite relatively healthy dealer inventory levels. In China, light vehicle production is expected to decline by 3% due to weaker domestic demand, while Japan and South Korea light vehicle production are expected to decline by two and three percentage points, respectively, reflecting softer domestic demand and a more challenging export environment. India's slightly production is expected to increase by 6% due to a reduction in purchase taxes on new vehicles. Geopolitical uncertainty from hostilities around the Persian Gulf adds risk to energy markets, consumer confidence, and overall industry volumes.

A：The company is closely monitoring the potential industry-wide impact of political developments in and around Persian Gulf countries on supply chains, raw material prices, and overall demand for new vehicles. The situation may lead to a more challenging raw material environment, and the company is evaluating multiple scenarios based on its current assessment.

A：The expected gross impact from higher raw material pricing is around $90 million, compared to a previous assessment of around $15 million a quarter ago. The company is offsetting these costs through productivity and cost reduction initiatives, as well as customer compensation mechanisms, though there is typically a time delay between cost increases and recovery.

A：The company's full year guidance, excluding effects from capacity alignment and antitrust related matters, is based on no material changes in tariffs or trade restrictions as of April 10, 2026, and no significant changes in the macroeconomic environment or customer call volatility or supply chain disruption.

A：The expected adjusted EBIT margin is around 10.5% to 11%, operating cash flow is expected to be around $1.2 billion, CapEx is expected to be below 5% of sales, and the company expects a tax rate of around 28%. Positive cash flow and a strong balance sheet support a continued commitment to high levels of shareholder returns.

A：The company has focused on growing the market share of domestic OEMs, which are increasing their share of the total market. This strategy has served well in the quarter and has contributed to an improved earnings profile. The company is working hard to improve earnings across the board.

A：The recent rule changes related to the metal side do not meaningfully impact the company's current USMCA exemption. For the company, the USMCA structure is the relevant factor and there are no changes at this point that would significantly impact them in the context of the rule changes mentioned.

A：The disconnect between a 1% decline in the company's sales guide and a 2% decline in SP (sales per share) is not explained directly in the provided text. However, it suggests that there may be specific factors or dynamics at play within the company's operations or guidance that differ from the broader market performance indicated by SP.

A：The company's outlook on production is cautious and they are fully aware of the current trade tensions and other factors around the mentioned project. However, at this point, they have no indications or signals to suggest anything other than what is in their outlook. They are prepared to take necessary actions if the outlook changes dramatically.

A：The main drivers of the increase in raw material costs are not specified in the provided text. There is a concern that some raw materials like nylon may face supply shortfalls due to a shortage of butadiene plants. If there are shortages, the company is expected to find alternatives to swapping the短缺的原材料.

A：The main driver for the company's current situation is the oil price, which affects various product types. The company's plans to manage the situation include focusing on making the oil price lower than before.

A：The company has offset activities in place and their supply chain team is actively working to secure supply to offset potential oil shortages.

A：The normal decrementals mentioned are a reference to the company's performance with a typical range of 20% to 30% leverage. They are used to assess the impact of any potential drop in sales.

A：The loss in momentum for the balance of the year may be due to a significant drop in demand, which is outside the company's expectations. This drop in demand would impact sales and is considered in the company's full year guidance.

A：The pull forward from March's strength is not expected to reverse; the company still believes in the previously indicated end result despite the pull forward, which had a positive effect of roughly 1.5 percentage points in the first quarter.

A：The company has included the impact of raw materials in its guidance, assuming that gross exposure will be mitigated by price increases and internal cost control measures. The net effect of these impacts is included in the company's full year guidance.

A：Yes, the stability in customer call centers around 95% is expected to continue into the second quarter, assuming normal circumstances and resolution of supply chain disruptions. This is based on historical data and the belief that the improvements seen in the first quarter should persist.

A：The lower number of new model launches in Q4 was due to global reshuffling in the launch of new platforms, particularly in the US and Europe. This did not impact China significantly and the company had no surprises regarding new model launches. The timing in China did not differ significantly from the global situation.

A：Yes, the current US MCA exemption is still in place and it is not expected to meaningfully impact the Oems with MSRP offset on the metal side.

A：For the automotive sector, the main focus regarding tariffs is on the USMCA structure, and at the current point in time, there are no changes to this structure.

A：The company assesses potential changes in production on its financial outlook based on scenarios within a volatile environment. As of the current time, there are no indications of anything different from what is stated in the company's outlook, which can change positively or negatively depending on various scenarios.

A：The company does not currently see a major concern around the availability of raw materials. The supply chain team is actively working to secure supply, and so far, the situation is under control. However, if there are real shortages, the company has different activities planned to address them.

A：The main driver for the increase in raw material costs is the oil price, which impacts many different types of products.

A：If there is a dramatic drop in sales, the company's financial performance could be affected. The normal decrementals, which refer to the range of EBIT and leverage, would be impacted. The company reminds to refer to these normal conditions when considering a drop in demand outside of expectations.

A：The company is not specifically aiming for outperformance in the balance of the year. The full year guidance already includes considerations for mix development throughout the year, which can result in some quarters being more or less favorable than others. The guidance reflects the expected performance based on the current development for different regions.

A：The impact of raw materials is included in the company's guidance. The gross headwind is expected to be mitigated by price increases and internal offsetting activities. Sequentially, the development is not guided per quarter, but the net effect is included in the full year guidance. The company does not specify any particular quarter that will be more severely impacted.

A：The goal is to maintain stability in customer call offs, similar to last year's levels. There was an improvement during the quarter with increased sales in March, which helped stabilize the situation. The expectation is that it should continue to improve under normal circumstances, but this depends on the outcome with supply chains, particularly regarding the Middle East situation and related value chains.

A：The speaker mentioned that there were no surprises regarding new product launches as they are well prepared and visibility is high. However, the timing of the launch in China might have been earlier than expected. Despite this, the focus was not on timing but on the short-term impact, which was not significantly affected. The previous year's reshuffling of new platform launches, especially around electric vehicles (EVs) in the US and Europe, did not impact the short-term outlook or China.

A：The speaker indicates that the mix in each quarter has a meaningful impact on performance. The first quarter had a particular dynamic, which is not explicitly detailed in the provided text. However, the expectation is that the performance mix for the full year will be different from the first quarter, and the rest of the year may see deceleration compared to the first quarter's solid performance. The specific growth expectations and drivers for the rest of the year are not clearly detailed in the transcript.