Operator: We are now going to proceed with our next question. The questions come from the line of Giulio Pescatore from Exane BNP Paribas. Please ask your question.
Giulio Pescatore: Hi, thanks for taking my question. I have a couple of ones on China first. So, first one, you registered a large number of other launches in China in the last few quarters with Chinese car makers: Geely, , NIO and XPeng. What percentage of your business in China at the moment is with local players as compared to international brands? And then, the second question, again, on China. How do you expect to continue to outgrow the market there? Is it content per vehicle as China approaches Europe and North America or is it more market share gain? Yes, thank you.
Mikael Bratt: Yes, I think, I mean, on the Chinese OEMs, as we define them, we are roughly 25%, I would say, of our sales in China is towards them. As you’re correctly stating here, I mean, we work very closely with many of them and also many of the upcoming OEMs here also. And we are, of course, providing the opportunity also for them to be a robust supplier outside China as they continue to grow outside. But I think we have a lot of very interesting development agreements and programs with the Chinese OEMs for further growing that part of the portfolio. So, I look very positively on our collaboration with our Chinese customers for the future in both inside China but also outside China.
Fredrik Westin: Yes. And maybe to build on that, I mean, for 2023, we’d actually see the largest outperformance in terms of markets is in China and Asia.
Giulio Pescatore: Thank you. Very clear.
Operator: We are now going to proceed with our next question. The questions come from the line of Hampus Engellau from Handelsbanken. Please ask your question.
Hampus Engellau: Thank you. Two questions from me. (ph) disclose, but if , I mean, would it be interesting to hear what type of wage increases we’re looking at. That’s the first question. Second question is, on this price increases that you’ve been compensated for contracts that have already been delivered, if you have any number for what type of contribution you have that for fourth quarter, if there were any? Those are my two questions. Thanks.
Mikael Bratt: Hi, Hampus. Sorry, but can you repeat your first question? You were breaking up a little bit there.
Hampus Engellau: Okay. No, I was asking if you had a number on how much wage increases you have seen for the year in the organization in average, if it’s like 5% or 10%?
Mikael Bratt: Labor increases in 2022 or 2023?
Hampus Engellau: 2023, of course.
Mikael Bratt: Okay. Yes, it’s a single-digit percent number above what we would normally have. It’s mid-single digit percent number increase versus what we would normally have. So, above normal wage inflation.
Hampus Engellau: Fair enough. And then, did you have like any cost compensation for delivered contract in the quarter?
Mikael Bratt: No, we don’t disclose that level of detail. Sorry, Hampus.
Hampus Engellau: Okay. Fair enough.
Operator: We’re now going to proceed with our next question. And the questions come from the line of Colin Langan from Wells Fargo. Please ask your question.
Colin Langan: Great. Thanks for taking my questions. Just following up on the earlier question, looking at the second half rate, the margin that you’re guiding to for 2023 is actually almost in line with the second half rate, yet sales, if you annualize the second half, are up a lot. So, why the low conversion on those higher sales? What are the offsets there?
Fredrik Westin: I don’t think we’re guiding for the second half. And what we’re indicating is the margin for the first quarter, but we’re not giving any guidance top-line or anything on the quarterly levels. So, I’m not sure…
