How should we envisage the initial AI revenues? Will it be fairly profitable right away? Or will there also be maybe some additional costs upfront? Thank you.
Christian Klein: Yeah. Let me take it step by step. I mean on the product engineering side, we are not doing only now earnings late night, we’re also doing some engineering sessions late night. And I just looked last week at the overall architecture and the way how we actually — why we are so confident also with regard to the consumption and the cost of running the architecture of business AI is we are building the foundational data model. So for us, it’s key that we really infuse now all of our data in this neural network and that we have a knowledge graph, which then can find the wide data depending on the kind of analytical question or task activity what the end user has. On the LLM side, so the large language model, we actually partner.
We partner with a lot of players to also offer Joule around the globe. And then with regard to the cost, of course, these modules are extremely hardware intensive. But what we are going to do is we use our existing macro commitments with hyperscalers so we consume it out of that. And given now with RISE, we are the biggest operations partner for our customers, also the [LE] (ph) customers. So we are running billions of workloads. So of course, that also benefits us so that we now don’t need to invest in a ton of hardware, but really also can use our existing commitments. On the commercial model, look, we launched now in the meantime, the RISE premium offering. And yes, the premium offering, premium price, but of course, customer first. So we really looked at the value, so you find sustainability capabilities in there.
Advanced finance capabilities, cash flow optimization. We asked first customers who actually can improve the cash flow by 2% or 3% by better payment terms, et cetera, et cetera. And on top, we have AI. So it’s a real premium package with real value, and we see actually positive customer feedback for those ones who actually are our first customers. And then second, let’s not forget, we’re also offering AI embedded in our products with a consumption-based pricing. So you don’t have to go for the premium package all at once, but you can also consume AI business, AI as part of our solution in a pure consumption-based pricing model. So we give customers choice, which I feel is the right way to go.
Johannes Schaller: Thank you.
Anthony Coletta: Thanks, Johannes. And we will take one final question now. Thank you.
Operator: The final question comes from the line of Castillo Bernaus, Ben, with BNP Paribas. Please go ahead.
Ben Castillo Bernaus: Good evening. Thanks very much for squeezing me in here. And just one question on the free cash flow, I guess, in the full year guidance. It looks like you’re running comfortably on track there. It’s up close to 30% year-to-date. It would imply that Q4 free cash flow would be down year-over-year. I know we’ve talked about a couple of one-offs, but, Dominik, if there’s anything specific you could call out there just to justify that. And I know related to that, the topic of perhaps unwinding some of the extra factoring that was done last year had come up in conversations previously. Is that still on the agenda currently? Thanks very much.
Dominik Asam: Yeah. I mean cash flow is, of course, because of the sometimes volatility in some payments from customers, KPI, which is really difficult to predict at the year-end. But you mentioned some of the components already. What certainly is on the agenda to make sure that come 2025, there is a clean underlying free cash flow. We always said the EUR7.5 billion at that point in time should be clean. We are tracking well. And there are, however, some phasing topics, so we have not updated the guidance for good reasons. And now how exactly that will pan out after we have seen all the receipts of payments at the end, we will tell you, of course, in the end, but I’m not expecting any wild surprises on that front. So we are on a very good trajectory, as you have said yourself, on the free cash flow side.
Ben Castillo Bernaus: Got it. Thank you.
Dominik Asam: Thank you, Ben. And with that, we will conclude the call. So thank you. This concludes our call for today. Thanks for joining.
Christian Klein: Thanks a lot. Have a nice evening. Bye-bye.
