Aktieselskabet Schouw & Co. (SCHO) Earnings Call Transcript & Summary

Good morning, everybody, and welcome to Schouw & Company's Capital Markets Day. We are extremely delighted to see so many here in the room. It's a pleasure. It's been 4 years since we last had a Capital Markets Day, and we are looking very much forward to this day. I have the pleasure of being -- keeping track of time and being the moderator in this. I will also talk a little bit during the presentation. We have 6 interesting speakers lined up for today. Jens, the CEO of Schouw & Company for more than 25 years, will do a bit of talking. I am responsible for Investments and Investor Relations. And Thomas Hansen, our CFO, joined 2 years ago, will talk a little bit when it comes to capital allocation and the consequences of how we spend our money. Then we have 3 of our CEOs from 3 of the most interesting companies in our portfolio: GPV, HydraSpecma and Spectre. These 3 CEOs will give a presentation of each of their businesses. We have a very interesting program, and I can honestly say that it will not be an issue of coming up with good points or keeping the energy in the room, but we might have an issue of keeping time. So we will do what we can to stick to the agenda. We will speak the first hour about Schouw & Company, then we'll have a short break, and then we will have the 3 businesses on the stage. We will talk about 3 things today mainly. After the IPO of BioMar, which we believe was very successful, we will give a little bit of reflection on the conglomerate model that has created or led to the IPO, how that has worked in the past and how it will continue to work in the future. We will talk about how we will invest the money, how we will look into CapEx to investments to acquisitions. Then when it comes to the 3 businesses, they will look into the outlook, the growth, the margin and how they see the future. And lastly, we will not wait until the end, but we will also give a little bit of insight in how our ambitions for the medium term or long term until 2030 will play out. Before we start, I will just try to take a step back and look at what we said when we had the last Capital Markets Day in 2022. When we reflected over the program, we had 7 points that was the consequences or the result of the Capital Markets Day. We introduced our purpose that Schouw & Company is all about enabling growth through transformation. So a lot about how this transformation agenda is underpinning everything we do. We were on the back of COVID, had a presentation of how the conglomerate was risk minimizing, diversified and the non cyclicality in our businesses. We introduced ESG as a strategic priority. We had a rather ambitious presentation of Carlos Diaz, the CEO of BioMar. I at least see some in the room here said that it was maybe of even bold and very, very ambitious. But nonetheless, Carlos talked about the future for BioMar. GPV has just finalized an acquisition of Enics and stood as in a position of a consolidator in the EMS industry. And then we had, at that time, some long-term targets, DKK 35 billion in sales in last year and DKK 3 billion in EBITDA. We confirm also our leverage and dividend policy. And to try to look into what then happened, I think the transformation that the IPO of BioMar has led to is by far the most fundamental thing we could imagine in Schouw & Company. Schouw has been transformed. BioMar has been transformed and the purpose that we live after is really transformation of businesses. We have also not expected war continues, raw material volatility and price uncertainty, blocking of the Strait of Hormuz and so on. But I think our businesses have definitely shown strong pricing power and very strong resilience. So I think the message we sent in '22 was indeed confirmed. We have lowered our ESG -- our CO2 emissions. ESG is now a part of everything we do. BioMar did actually manage to deliver on the ambitious plan. BioMar doubled its EBIT from 2021 to 2025. So despite some of you, not mentioning any names here in this room, of course, but some of you said this was close to crazy. This was actually how BioMar succeeded and what we saw. GPV has very successfully integrated Enics, will talk about that. We did, however, have one near miss in this list, and that is our financial ambitions. We were damn close to it, but we did miss with DKK 500 million or DKK 600 million on the sales and around DKK 70 million on our EBITDA. But I think it's fair to say that we almost managed it. Leverage has in the entire time, been stable within our band and dividends have increased 13%. So with that, we have a strong history. Now it's up to make sure that we also will have a strong future. And with that, I will hand over to Jens, who will tell a little bit about how Schouw & Company is today and what the future might look like. Jens?

Thank you very much, Kasper. Let's hope that what we are presenting also later this day, we can -- when we look back in 4 years, have the same momentum as we have had. So I've really also been looking very much forward to this Capital Markets Day. Welcome to everybody. Nice to see that so many of you will spend a few hours together with us. As Kasper also mentioned, a lot has happened since the last Capital Market Day. In fact, I would say the world has been volatile or even kind of crazy, but we have worked our way through it. And today, I would say we don't think new normal. We think this is normal. This is the environment we need to conduct our businesses in. Also say that don't expect a big revolution today. We are Schouw and we continue to be Schouw, but we'll present ambitious growth plans. I think also when you see and listen to our 3 exciting companies we have brought here, we also see there's a lot of momentum within Schouw. So I think a lot of good things will materialize over the coming hours here. I will just spend a little time on elaborating on who we are, what we do, how we do our business and so on. I'm looking down here, I know some of you have been following us for many, many years. So you more or less know our structure and things out and in, but also new faces. I think it's also in its place to just elaborate a little bit on who we are. Let me just start with this one, just to setting the scene so at a glance. We are what we call industrial conglomerates. We have 7 very relevant businesses in our portfolio. And these 7 businesses, they have around 80 factories around the globe. So a truly global industrial company. We have operations in 35 countries, and we have 20,000 employees working every day to create value for shareholders and for Schouw & Company. And these 7 leading companies, they turn -- make a turnover of around DKK 35 billion to DKK 37 billion, strong operational profits. I think we are, as we speak, in a very good position. I haven't seen the share price starting up this morning, but otherwise, I would say we are standing on a position of all-time high share price, all-time high operating profit, solid balance sheet and then a very relevant and attractive portfolio of industrial business-to-business companies within Schouw & Company. And as Kasper also mentioned, we are transformers. We continue to try to build and transform on our companies. Let me also just mention that in the Schouw ecosystem as well, we have one main shareholder, Givesco, is a family foundation. They have been with us for 40 years and not rocking the boat. We call them the invisible hand. They're sitting there. They have been supporting the way we have developed Schouw & Company over many, many years, never sold a share, of course, hopefully been very satisfied with the shareholding, having dividends over the last 40 years. But I think part of the way Schouw thinks, part of the way we operate also is coming from having such a longevity with our main shareholder. I think it's very important for us also, and I think it's a super good thing to have. So let me just give a small look into how do we do business. We are standing on or not standing, we can't stand on that, but we call it the circle, the strategic circle, 5 levers, it's our modus operandi. And the most important thing is -- we are Schouw, we are a diversified portfolio. We have a diversified portfolio of companies. And that's the way we think, that's the way we act. And we have today, as I said, 7 diverse -- very diverse companies within our portfolio, but still, they are standing on the same platform. They are all business to business. They are all suppliers to big global companies. So there's a lot of similarities in the portfolio we're having. Then we also -- it's important for Schouw & Company that we ensure that we have a strong capital allocation, capital in place to support our companies. Most important maybe and most fundamental within Schouw & Company is that we are active owners. We practice active ownership, and I'll elaborate a little bit on that later on how do we really do our active ownership. Then also very important, and I think Kasper alluded a little bit on that, operating responsible businesses. Last Capital Markets Day, we introduced our ESG strategy, the way we want to work, being responsible, being trustworthy. And it's super interesting is if I discuss with some of the old guys back in time on how have Schouw & Company done business, is there anything new in that? We always try to do our business in a responsible way, being trustworthy and so on. But now it's more into a frame. And then last but not least, securing financial versatility as meaning that we have freedom to operate and take right decisions at the right time. I think that's very, very important nowadays. Several banks in this room here, but we are really very, very careful of not being too dependent on our financing and capabilities and so we want the freedom to operate. Also therefore, we have a very clear band on our financial targets. Then just a glance into also what I call our organizational ecosystem standing on 3 pillars. We have, of course, the Board of Schouw & Company. Won't elaborate too much on that. Then we have the Schouw & Company management, we call it GET Group executive team. Kasper already introduced us, but let me just take us through. We have Thomas, our CFO, still very, very young in Schouw & Company, a lot to learn. When you've only been 2 years with the company, then you're young, if you look at how long time Kasper and I have been altogether, but a seasoned management team that has been along for quite a long time. Then we have our 7 CEOs fundamental for creating value and driving the businesses in Schouw & Company. And we really put them on also because they are creating -- running the businesses and also a very precise strategy on that. We always say management hold the key and it's a mantra and it's fundamental for Schouw & Company. So then together, the GET team from Schouw and the 7 CEOs, we form what we call ExCo, our Executive Committee, meeting occasionally or with a high frequency, painting the bigger picture together, discussing exchanging things, inspiring each other, et cetera, and also all of them standing on a common platform. So there's a lot of inspiration to gather from each other within the company. So it's a very strong and very well-proven organizational structure we have, and we feel really confident on that. And I think you can see all -- everyone has been around for quite a long time. Of course, Lars, he will present later on he's new kid in town. In fact, we haven't seen the first monthly report yet from Spectre that new it is. So really looking forward after the meeting here to see what has been happening in Spectre the last month. Good. Then just a few words on the group, the headquarter where Kasper, Thomas and I reside and where we have our daily workplace. What do we do there? What is the purpose of having a group function? We have within Schouw, really built Schouw and our companies on this lean philosophy. We are business to business. Every cent count, you need to be lean, you need to be efficient in the way you run your businesses. And that also starts with Schouw & Company. We have 20 employees running the group, only doing things that we think create value. Active ownership, as I said, very, very important for us. We are allocating capital to our companies, participating in setting the strategic direction, meaning target setting for each of our company. And then very important, all M&A activities driven out of Schouw & Company. I think now we see the CEOs here, they think, of course, M&A is very, very interesting and want to go into it. And of course, we do it in cooperation with the companies where we have a long experience in working on the M&A side with a lot of facilities and things we can put into that. And then we have one common platform, and that's funding and treasury is made from Filtenborg from the house here. So we have a common treasury and financing, everything comes out of that, and that has really created significant value for Schouw & Company over the years, something, I think, 10 years ago, 15 years ago, we started to do. Otherwise, we don't really do anything IT, HR and things together because it doesn't make sense. We have a saying only intelligence value-creating activities will be conducted out of Filtenborg. Also very important, we do all the reporting to our shareholders, to the stock market, and we always say we are very fond on -- it's very important for us to have an open and transparent reporting to our shareholders and to the market. I think we always think we are saying what we see. And that's very important for us always really, okay, we are seeing this and we are saying and telling it to the market. Then just a little bit into how do we actually own why -- what are the principles for own companies. And then I think Kasper was also into that, we transform, we own to transform and unlock value. That's part of the strategy, having this small holding company and then finding attractive companies and taking them into the Schouw & Company model. So the model we are working on, you can see up here is we -- I think very important today is we understand how to own and navigate independent large companies because it really takes something when you have given the keys to management, when it's large independent companies, you have to approach them in a very delicate way because they are running the business. But our ownership model really builds on we buy to hold. Everyone frequently -- I'm frequently asked, why don't you sell more? Why don't you exit? Because we buy to hold and transform and Schouw is Schouw. That's our model. We transform. We empower management, as I said, and then, of course, also always facilitating, participating if consolidation is going on in the market. So long-term value creation always in focus with Schouw & Company. Of course, we need to report to the market every quarter, but it's always with the longer view in mind that we do and run our business. I think also we can say that we bring stability into our operating companies. Hopefully, some of the CEOs will elaborate a little bit on that later. But just standing there having a solid owner then on a rainy day, we are there, we can support them. That means a lot, of course. Also we have what we call a best owner philosophy. What does that really mean? It means that the company have to create value, have to be able to transform itself, deliver and we also have to be in a position where we can allocate sufficient resources and capital to the company so it can continue to grow. If that stops, then we are not the best owner any longer. You can see up there on the screen, what I call the ownership wheel. We acquire a company and then it gets into the wheel. We develop, we transform, we grow and then we are spinning the wheel and continue to spin it as long as it can grow and transform and so on. It's a strong company within Schouw & Company. And of course, things can happen so we can participate or will participate in structural changes, mergers or whatever. Then I'll also allow myself just to raise the question, has our strategy over the last years created value? Looking back 25 years back, we have been growing year-by-year. We have continuously developed our portfolio and companies. We have had 5 very important focus areas, and that's to deliver operational growth. It's to deliver shareholder return over a period, also develop and have a relevant portfolio of companies. And you'll see up there that we have really been active on especially bolt-on acquisitions. People think, do you not sell and exit and do things, but we have been very, very active on acquiring bolt -- strong bolt-on companies for each of our portfolio companies. Then also very strong focus on having a solid balance sheet and then running a responsible business. And that's a new kid in town that we're much more focused on being responsible. We are a global player today, factories, as I said, in 80 countries, meaning also there are some countries, some areas where we really need to have strong focus on ESG and responsibility, other areas where it's not as important today, but I'm 100% sure that it's something that has come to stay. Then also just showing that in -- since we created this diversification strategy, building an industrial conglomerate back in 1989, we have only, I'm doing like this, had 13 companies within our holding. And 7 -- 6 of them, they are not with us any longer, and then we have the strong platform of 7 very, very relevant and interesting companies. I think also we can be proud from Schouw & Company that we have participated in developing what I call really world-class companies. We've been with the wind turbine since 1993 and participated in mergers, et cetera, was the biggest shareholder in Vestas and then we delivered Vestas to the markets. Now #1 global wind turbine company really with Schouw & Company as one of the key facilitators in that. And then also looking at another company, Kramp up there. Maybe it's not a household name here, but it came out of our first acquisition, Grene in the western part of Jutland was a small company doing spare parts for agriculture. We merged and did a lot of things. And today, Kramp is the #1 in the global agro aftermarket and really, really solid, strong company, Dutch-based. We had a share hold of 90% after mergers, consolidations on and then we sold it out. So 2 very, very strong companies coming out of the Schouw operating model, you could say. Of course, also all of you know Schulstad, we've been in Schulstad, a lot of things won't go into that. But just to tell you, that's the way we work with companies. If things should happen, if consolidation is going, if it's necessary, then we are there, and we are positive to facilitate and work on that. Then also a little bit, I'll take one of the companies out here just to show our transformation strategy. As I say, we do buy companies to transform, to grow. Looking to BioMar, I think we are a company we are very proud of having been part of, I call it, a transformation showcase. We came into BioMar in 2005. And then we have done a lot of bold moves over the last 20 years, entered into Latin America, entered into new species into Asia, done a lot of things. And now we IPO-ed BioMar and prepared it for the next level journey they are on. We have unlocked value also to show to our shareholders that there's a lot of value within Schouw, and we unlocked value of DKK 2.6 billion in the recent IPO. But looking at -- I like -- I have to say a little bit, I like the box down there, looking on the numbers and the figures from BioMar. Together with dividends and the actual IPO, we have unlocked DKK 7.3 billion from BioMar. So it's a really super example or showcase on how do we work and transform company. We could have done the same with Vestas and so on. So it's a big part of the DNA within Schouw & Co. Of course, also, it's not always everything really goes after the plan. We make mistakes, even I don't believe it, but we do, of course, we do. And we -- when we acquire companies, of course, we always acquire a company because we have a strong belief in that it's a good fit for Schouw & Co., can transform it and we can do. What happens then if it doesn't play out the way as expected? Then, of course, we need to start up our active ownership strategy and just an example, Borg Automotive acquired back in 2017 had all fundamentals in place, circular economy, reman, sustainability, European-based production facilities in low-cost countries and so on, super good. Still a good company, but a lot of things played out the wrong way. We had to close down our big Russian market, withdraw from that. We had the COVID coming up. We have strong pressure from products coming into China. Something needed to be done. New management team in place came up with a plan. We call it Refine for Future. It's at work now, a lot of footprint decisions taken, closing down factories, et cetera, et cetera. And I can say that the plan is working. They are regaining momentum. Of course, a long way to go. It's a 3-year plan we are working on. But what we need here is to get this company back at the return on invested capital target we have. And then -- and then we will see what are we going to do with that company, is part of consolidation or things like that. But really get it back in place, and we have a strong belief in that. So with that in mind, then let me just hand over to Thomas, who will also tell a little bit about our capital discipline. And I know it's something Klaus has been looking very much forward to, unfortunately, not too much on working capital today, Klaus. But we have -- let's see what Thomas is coming up with. So welcome Thomas on stage here.

Thank you, Jens, and thank you for calling me young. It's not every day I hear that anymore, unfortunately. And it's very nice to see a lot of familiar faces, also a couple of new ones, and I'm really pleased to meet you all today. Before we talk capital allocation, I just want to touch on one thing that is actually making this topic even more important for Schouw. And that's, of course, the IPO of BioMar. Jens just showed that we unlocked DKK 2.6 billion in proceeds from that transaction. And that's, of course, really, really important to Schouw. But to be completely honest, that is not the sole reason why we did the IPO. We did the IPO for multiple reasons. The first reason was actually to make sure that we were able to show that's my [indiscernible], no we did it to put spotlight on what's actually the value of BioMar within Schouw. And that's actually what we believe we have managed and also part of the reason why we're seeing what we're seeing today. We also believe that it's extremely important in the conglomerate to have a balanced portfolio. And with the IPO, we are getting a slightly more balanced, even though very much skewed to BioMar still, but a more balanced portfolio, which we also believe is extremely important. We still retain full control. We're still able to fully consolidate. I'll get back to that a little bit on what it actually means to the financials of having BioMar listed. But we're still able to retain control of the company, fully capitalize on their revenue and EBITDA into our numbers. So that's not a bad thing. And of course, the proceeds then give us enough power to execute on the growth strategy that we have for Schouw & Co. So all in all, it's not just the money, but a lot of aspects that this IPO is contributing with for Schouw & Co. And with that, we, of course, know that capital allocation is key in our company. We believe we have a very clear prioritization when it comes to capital allocation. As you can see here on the slide to the left, the future capital allocation priorities are listed here. The first three one is around protecting the current businesses that we have today. We have named the first one, keeping the business running, and that basically means with 80 factories around the globe, there's a need to make sure that our machinery is fully up to date in order for us to be relevant and competitive to our customers. And that is extremely important. And you can also see we've tried to look at the last 5-plus years, what have we actually spent in this area. And that is where we are spending the most of our money. And that is to make sure that all the factories that you'll hear some of the CEOs talk to that as well, they have up-to-date machinery to be competitive, to make sure we don't have breakdowns because in a fairly low-margin company, breakdown is crucial to profitability. So that cannot happen. The second one of our priorities is expansion CapEx in our current businesses. And the reason for that is that we want to make sure that our assets besides the machinery sweat as much as possible. And it is still cheaper to do expansion, if possible, in current factories than it is to build bolt-ons or new investments. So that's the second priority. And then the third one on our existing business, that is do bolt-on acquisitions. We have done that quite a lot as well. We have done it in GPV. We have done in Hydra. We have done it in BioMar over the last 5 years. And we now have what we believe sufficient capacity within our existing factories and footprint in order to cater for the growth trajectory we are on. And then finally, at the top of the line here, you can see stable increasing dividends to shareholders. And that's because, as Kasper mentioned, we have maintained and kept our dividend policy, and that is to have either stable or increasing dividend. And the reason for that is that we want to award the long-term investors that we have, and we believe by having that dividend policy, that's the best way of doing that. That's a lot of money we're spending on top of the line. And of course, if we have more and currently we have, we also believe that share buyback is a very good way of providing value for our shareholders. We have spent DKK 2.3 billion on that within the last 5 years -- sorry, on dividend, plus DKK 1 billion on share buybacks. So more than DKK 3.5 billion has been paid back to our investors over the 5 years. And within just the last year, we have paid approximately DKK 800 million in dividends. And with the recent or the latest share buyback we have for this year, that totals up to DKK 800 million. So a significant amount of money is going back in that way. New platform acquisitions, we actually haven't had any in these 5 years because this is up to Q2. But what we are trying to show here is what are we then paying for new platform. And for Spectre, we have then paid around DKK 900 million for the 75% that we have acquired. And then Jens always say, if we can't find somewhere to put this in, if we can't find good expansions, good bolt-ons, new platforms, then of course, it has to be paid out to the shareholders in the long end. But that's not where we are right now. So I think it's for us really, really clear how we prioritize it. And finally, I just want to touch on, as I mentioned before, what is actually the financial impact of doing the IPO on Schouw. We have had some comments on how does it actually -- what does Schouw look like? How does it actually impact your financials? And it's not like -- it's a big thing, but from a financial perspective, it's not like a lot is actually changing. As I mentioned before, revenue and EBITDA, there's no change. There's fully consolidated into our numbers. So what the revenue and EBITDA was from BioMar going into Schouw before the IPO is still the same after the IPO. There will be a noncontrolling or minority interest in the balance sheet that will increase. And that's, of course, because now 26% is owned by somebody else. So that's what we have to account for. And then the biggest change is actually on the net interest-bearing debt, where we, prior to the IPO, had around DKK 5 billion net on the entire group level. And now we are down to DKK 2.6 billion end of Q2 due to the proceeds coming in. It's a little bit different. You can say, well, now you don't own DKK 2.6 billion, but we are splitting it differently because BioMar has their own funding, their own leverage targets and so forth. So when we listed the company, that was with a leverage of 2.0. And that means that BioMar needs to have around DKK 3 billion of debt in their balance sheet. That also means that in the rest of the company, as we total have DKK 2.6 billion, we have a net cash position. The individual company still, no changes to that. So they have a debt of DKK 4.9 billion, and that basically leaves the residual cash in the parent company of DKK 5.6 billion. And that, of course, we are placing wherever it makes sense. But that's kind of -- so that's what it actually means to our financials. So not that many changes in reality. And Kasper will now talk to a little bit about on what does it then mean to the share price or the share value.

Sure. As Thomas said, one of the reasons of doing the IPO was to increase the transparency. And with the listing of BioMar, then at least it's very easy to see what is the value of the 74% of BioMar that Schouw & Company holds today. We have the market cap. And on the chart on the left here, we can see that the value of our BioMar shares have in the period since the IPO in May been fluctuating between DKK 8 billion and DKK 10 billion. That's something we can read in the newspaper or in the Bloomberg terminal. In that context, the other businesses, and now I'm trying to be very simple here. The other businesses are still a little bit more of a black box. Some would say Schouw was a black box before. Now we have taken half of it not being a black box. But if we take a very simple approach saying if we want to do something similar to looking up in the newspaper, what is the market cap of BioMar, try to figure, what is the net asset value or the equity value or the modeled market cap for the 6 other businesses, then these 6 businesses combined have an EBITDA of around DKK 1.5 billion. In these 6 businesses, there's a net debt of around DKK 4.9 billion. And if we just make a simple assumption saying that they have an enterprise to EBITDA multiple of 8x, that means that there is a net asset value in the 6 remaining businesses of around DKK 7.5 billion. Then as Thomas said that given the treasury structure we have, given that we are both owners of our businesses and also bank for our businesses, we have a capital structure, which on a group consolidated level is a net debt position. But in the parent company, right now, there is around DKK 5.6 billion in cash. So to make this transparency model work, then it is to say we have the value of the BioMar shares, we have the value of the other businesses. We have the cash we have in the parent company. And on the chart here on the right is then trying to say this is then the sum of it. And in this highly illustrative model, that means that the market cap of the net asset value of Schouw & Company is DKK 22 billion. And this morning, I think we were trading if you subtract these 11% treasury shares that we have, that the market cap is around DKK 18 billion. And of course, it's not our purpose here today to say that this is right or wrong or if this reflects the outlook. But at least I think Jens will now talk a little bit about what is then the outlook for the businesses. And then it's, I guess, up to the market to try to put a value on it. So Jens, please go ahead and talk about the way to 2030.

Thank you very much, Kasper. And I think after all this very technical stuff, it's good for me just to free ride a little bit on strategy and so on because there you can only speak about future, but you can't promise that future will materialize the way it does. I think quite interesting also very good, I think the capital allocation prioritization as Thomas came up, we have been working a lot on that over the last year. I'll just show to you our new strategy plan, we call it Expand 2030. I think the words even say something that we intend to continue to grow and expand our business. It will build on our actual strategy. But also, I think we will not think -- we will definitely be more prudent and stringent on the capital allocation. I think also we will start pushing our nonperforming companies a little bit more, showing also before on Borg, how to really work when things doesn't run the way we expect it. We will continue to have the longer view. We still think it's the most important thing for us is to really take a longer view, but push hard on daily operations. And then, of course, very important also in the period to secure a relevant and what I call best-in-class portfolio. I think that's very important for us. So we just want to fine-tune the model and continue to operate on a daily basis, I always say to everyone, as long as we do things a little bit better every day, then it's 365x better every year. So there's a lot of things to work on in these kind of companies we have. Let me just show the -- what we are standing on. So that's our portfolio. Kasper mentioned that we will have a presentation today of 3 very -- of the most interesting companies. I have to say we have 7 very interesting companies within our portfolio. A lot of things happened since you saw that, and you can see from your side, yes, from here on the left side, BioMar being listed, so a new life within Schouw & Company. And then on the right side, Spectre, the new kid in the portfolio. And we have not acquired a new company since 2017. So it's the first time we acquired a new company into our company. And of course, a lot of expectations to that, not to put pressure on Lars sitting down, he will come up later on, so then you can challenge him a little bit. But 2 very important changes to this platform in 2026. I will not make a deep dive into any of these companies. We will have the 3 CEOs coming and then just a very, very fast flip through the 4 other companies. And I think if the CEOs of the 4 other companies knew that I'm going to speak 1 minute about each, they will be very insolid. But we have to do that because of time. BioMar, still very strong position in our portfolio. We own BioMar to hold and participate in the long-term development of that company. We really see BioMar challenging the position as being #2 global fish feed producer within this we call high-value acquafeed for high-value species being very innovative, having full focus on innovation and been driving that for quite a long time, also accelerating into technology for farming and things like that. So a lot of things is going on with BioMar. I won't go into it because there has been a very transparent process with the IPO, 220 pages prospectus and so on. So I think everyone knows quite a lot about BioMar. But it's in our portfolio, and we intend to keep it there. Then we have Borg just elaborated on it earlier, Refined for Future plan is there to deliver a strong profitability uplift, footprint decisions made, closed down in U.K., reduced number of FTEs, innovation platform, a lot of things is going on. And I'm pretty sure -- I'm not pretty -- I'm very sure that the momentum is there and we'll be back on the expected return on invested capital, and then we will see what -- how we deploy strategy after that. Then Fibertex Personal Care, a company that has been with us for a very long time since 2002, being a strong cash provider to Schouw. We never came with any capital to Fibertex; they have financed their own investment, their own journey. They are challenged in Asia for the time being. We have overcapacity out there, came out after corona, a lot of things, a lot of competitors also installed new capacity because the market was booming. But as we speak, 12 million babies less born in China on a yearly basis, that's really something that means a lot for a company like that. We're pushing hard on innovation. We think that innovation is the key to unlock more volume into Fibertex Personal Care. Of course, we also think that the consolidation will continue and maybe at a larger speed in this business, and we need to be there if things are happening around that company. Last, Fibertex Nonwovens also out of -- since 2002 and the company we split Fibertex into Fibertex Personal Care and Fibertex Nonwovens. It has -- we are transforming Fibertex Nonwovens now. They have been through a tough period. And we have also, to be honest, that we invested too early on the back of very, very strong volume and things in -- during the corona period. But we have a strong plan in place. Momentum is really strong, delivering as we expect, and I also really expect a strong uplift from that company. See it as a future growth case within Schouw & Company. And they have capacity in place. They have innovation in place to secure next level and this return on invested capital uplift. So a lot of things is going on in that company. I won't spend more time on that. Then just looking into each of our company because they are the platform for our 2030 strategy. We have clear targets here. We show you the targets on the operational profitability and EBITDA levels. I won't go into each, you can see there, there's a clear target for each of them, and that's what we expect our companies to deliver on. And if they don't deliver, we need to see plans and actions to secure that we can deliver on this. Of course, there are other targets than just a simple EBITDA target. But that's what we are measuring the companies after. We have a lot of firing power in place. They are all -- and I really have to say they are all very well invested, newest equipment, a lot of capacity. They are running very solid commercial excellence plans. I think also very important here that all our companies solution providers, stickiness with global customers, been with our customers for a long time. We have -- we see now scale effect from our big footprint decisions and so on. And all of them really run and operate a very clear strategy. So standing on these 7 strong relevant companies, then let's just show you our one page on our Expand 2030 strategy. And as I say, it's an expand, it's an offensive growth strategy we are having. The model is not changed at all. We are squeezing in on some things, but we expect at organic to grow 5% to 7% year-by-year. And all of you and most of you also know turnover within Schouw & Company can be quite difficult because we are operating a big raw material platform and raw materials fluctuates up and down, proteins for BioMar or polypropylene or whatever, but still 5% to 7% organic growth expected. This 5% to 7% organic growth is expected to deliver DKK 4.5 billion EBITDA in 2030, around 10% EBITDA margin. We will continue to drive and develop our portfolio. We had a structure -- this plan was developed in January this year where we said we think 1 to 2 structural changes will happen within our portfolio. We also expect to see 1 to 2 new platform investments. One is already made, Spectre; one structural change already made, BioMar IPO-ed. So -- but also just to tell you, we know that the portfolio is dynamic. A lot of things is happening, and we need to be open on that. Then we will keep our actual capital structure, 1.0 to 2.5 as leverage, feel we call it our comfort zone. We like to be in that comfort zone. And still, we have a lot of room there. Won't go much more into the rest, but also, of course, focus on generating strong free cash flow. And maybe the reader that can read what is small down there in the note that return on invested capital, we have moved our return on invested capital target from a return on invested capital exclusive goodwill into a return on invested capital, including goodwill, 15%. We keep the 15% level, but changed the goodwill way there. So I think that's important message also that we are going to push even harder into our portfolio companies that we want the return on invested capital, including goodwill to be delivered at the level of 15%. Okay. Is that just something we have pulled out of the sky? Or how do we really intend to deliver the 4.5%? I showed you the requirements we have on each of our portfolio companies and then try to bridge it here. This year, we expect DKK 3.1 billion to DKK 3.3 billion in EBITDA. And then how are we then expecting to come down to the DKK 4.5 billion? BioMar is going to deliver other businesses and then Spectre in as the new company. Key levers, as I already elaborated a little bit on, we have capacity in place. We don't need many investments to do this. We have a very, very strong customer portfolio. I can't remember we have had an order backlog, long-term order backlog as strong as we have for the time being, also meaning that global customers really want to work together with a strong company. We have -- we are solid, we are responsible. And then also, I think our solution provider strategy is super good, building on innovation and then, of course, also strong leverage from our scale and footprint decisions. So with that, just finishing off saying that the Expand 2030 EBITDA target, DKK 4.5 billion is based on organic growth on the present platform. No acquisitions, nothing in that plan. Do you then intend to do acquisitions? Yes, we do, but we can, of course, not say if it materializes because we are not committing ourselves to acquisitions that are not margin enhancing or value creating. Two types of investments you will see. The one platform acquisition, I said maybe one new platform acquisition in [ Expand ]. Don't know if it will materialize. very, very clear criteria for how are we going to do that, which we are going to acquire a new company. And then bolt-on acquisitions, we are very eager on bolt-on acquisitions because that we can put into a company we know. It's well proven. So a good way to do that. Also a clear focus on how do we do that. So all in all, we have a lot like that or we have sufficient firing power within also our capital allocation priority strategy to continue to be acquisitive and to be in the market. And I say we are merchants and we are ready to take an opportunity if it shows up. But of course, it has to create value always with that in mind. So -- but I think also -- and Thomas introduced our new capital allocation priorities, and we are going to stick to them and to be very loyal to that. So finishing off saying we are proud owners of leading business-to-business companies, and I think there's a safe and strong home within a strong company for companies like that to create value for shareholders also in the coming years. So on that note, I think we will hand over to Kasper.

Yes. And we will now open up for questions. We will have questions in four sets. There will be the opportunity to ask questions to what's just been said now. And then also after each of the 3 CEOs, we will have a short Q&A session. And the good news is we are on time. So there is around 10 minutes now for questions. [Operator Instructions].

Claus Almer from Nordea. So the first question goes to the CapEx. You said you're very disciplined and you also have this long list of things you want to do, but there was no numbers. In the past, you had some return criteria for CapEx. So have you skipped that? Or what is actually your disciplined approach to M&A and inorganic CapEx?

Thomas, maybe you can elaborate a little bit on that first.

Yes. So of course, it's difficult to say exactly what's the exact target because the targets are different from the companies to the companies. The overall targets we have up here is what we believe we should be. And as Jens mentioned, whenever we invest, we believe we should have at least 15% ROIC on our investments, now including goodwill, which basically elaborates to 17%, that was previously 15%. So we have increased that with approximately 2%. The individual bolt-ons or the individual CapEx expansions, whatever we do will be dependent on in which company it is and within what segment or within what product type it is. So it's a little bit difficult to say it's just one number. But the individual companies have their own strategy plans with their own targets. So for the next 4 years, they will have their own.

And you would say also, Thomas, maybe we'll get a little bit into it later on. But of course, every investment CapEx M&A, whatever, especially CapEx investments, et cetera; will, of course, be based on very solid business plans, and they need to deliver on the return on invested capital. We also know and you know also, Claus, that big CapEx investments that like in a staircase and you can't fill up the volume immediately. So you need to step the stairs before you full up and then you will deliver the return on [ risk ] capital. But to be honest, I don't -- and that's very dangerous to say now, but I don't see very big CapEx investments in this Expand 2030 period. Of course, if something very attractive, interesting coming up, we look into it. But we are prudent on payback times and so on.

Yes. So that was actually my next question. Given significant CapEx over the last 5 years, you must have ample available capacity and up-to-date production lines across the portfolio. So CapEx must be limited in up to 2030 from what we can see today.

You're right. I would say where we have ample capacity mostly, Fibertex Personal Care, Asia. Fibertex Nonwovens, we had in U.S., we are starting to fill it up. Really, we are setting a new line in work late 2026 in the Czech Republic. As I also said, we have, I think, the strongest order backlog we've ever seen across the board. So of course, we are -- we have capacity. But if you look at the other companies, I think [ HydraSpecma ] will tell a little bit about they are also running at full steam, GPV, the same. Spectre just build a new factory. They opened a new factory #4. I won't take the glory from Lars, will tell on that. But we have, of course, capacity. I don't expect big capacity investments in the period.

Other questions?

[indiscernible] shareholders. Your target for capital gearing, net interest-bearing debt over EBITDA is between 1 and 2.5. That seems to have been the same target for years. What is the reason you're immune to the movements of the interest market? So whether we had negative interest levels or we have positive interest levels, it's still the same gearing you have and interest levels are coming up fairly quickly.

As we speak, yes, it's the same level. And I think it's very healthy to have that level, and we call it our comfort zone also because then you can't just go out in a very, very big investments and leverage yourself too much. We have tried that many years back, and I think we have lessons learned. But also, as I say, we -- one of the key issues in our ownership wheel is that we can allocate capital whenever needed and to who needs it. Of course, it needs to be right good priority for business, but we need to be able to allocate capital, and that's why we have that band. I don't know on the interest rates and so on. Thomas, how...

You can also say on the range we have, it is a wider range, 1% to 2.5%. There's quite a lot of big amounts in that spread. And for a couple of years, we have been closer to the 2.5 than the 1, which has made it a little bit impossible to do the big add-ons, right? And now we are lucky in hopefully in a good position to be able to go up. So I think it's a fairly broad span, and it gives us the possibility to be if you want to be in the lower range or in the upper range, depending on the interest, I would say.

And honest, for the time being, we are below the level and sometimes we'll be in top, of course. And when we are below the level, that was also why we started our share buyback thing. So it goes hand in hand.

And being long term mean that you have something that holds for many years. Emil also has a question.

Emil Haargaard from DNB Carnegie. So on the organic revenue growth target of 5% to 10% on average towards 2030, can you elaborate a bit on how much of this target is based on the underlying end market growth across the portfolio companies versus your expectations for market share gains?

Yes. Just to -- somebody [ said ], it's 5% to 7%. Of course, market share gains is difficult to say. We are on a good journey with all companies and working also for more share of wallet in a lot of the big companies where we are, we can not easy, but sometimes easier to go in and could we have a larger share of wallet with you and so on. So -- and as I said, order backlog, very strong. Bo will also elaborate on that for GPV. Sometimes we are looking 2, 3 years ahead. So it's based on not actual order, but on requests from customers and saying we are not taking a lot of market share, to be honest. We're building on the customers we are having, but also looking into new. And there's a lot of new customers also wanting to work with us.

And the 3 companies coming to present later will elaborate on that. Ulrik?

Ulrik Bak, Danske Bank. Also a question on your revenue growth of the 5% to 7%. What assumptions have you made in terms of pricing? Because as you said, there is a lot of pass-through in some of these companies.

This is with a steady -- with the world we know now. So if raw materials goes up like in BioMar, then it will hike. If there will be allocation in GPV, then it will increase. So this is how we -- the world we know now is the foundation for that.

It's much more based on also volume. The world we know and then volume, as I said, we expect volume to grow, but it's difficult sometimes to really put it into turnover figures. You will also see with GPV 2 years back, they had DKK 10.4 billion turnover, and that was based on pass-through pricing and things like that. So it's a little bit difficult within Schouw & Co. to get a specific number, but volume will grow.

And then another one on the EBITDA margins that you showed on the slide. If I use the 5% to 7% revenue growth and the EBITDA margins per portfolio company, I get to an EBITDA closer to DKK 5 billion versus the DKK 4.5 billion. Is there anything I'm missing in my math? Or -- because I also saw that the EBITDA margin targets, it didn't say a specific year. So is it that beyond 2030? Or how should we look at it?

I think that's your calculation. And we also know how we calculate. So maybe we have two different calculators. But yes. I feel very comfortable on that number.

Sindre Sorbye From Arctic in Oslo. Just without alluding too much into near-term developments, but your answer now said that these revenue targets were on current conditions. But isn't it so that -- I mean, if it goes from '26 to '27 with current -- under current circumstances, you will have a large gain in the top line from pricing cost, I mean, everything what happens in the fish feed industry and also in GPVs market with all this tightness on PCBs and semiconductor and components. So I guess I'm just taking the current prices at last year's turnover, you would have actually maybe 10%, 15% kind of artificial uplift. So is it based on, let's say, last year's prices or...

Current price level as it is.

Okay. So we will have some windfall, of course, not in margins, but...

You know also a lot about proteins and things like that, how it fluctuates. We have an El Nino for the time being really going -- some proteins going crazy, but then you need to substitute. And honestly, of course, revenue is very important, but it's something where we say we cannot be too firm on that. We can be firm on volume and development and business growing on volume, and then let's see what happens on that.

Okay. So 5% to 7% is mainly volume?

It's volume, yes.

Yes. Okay. Fine. And then on the platform investments and the evaluation of the platforms, I mean, you mentioned Borg, but a couple of your other businesses haven't really, let's say, performed that well over time. And you specifically mentioned FPC that you thought consolidation would come. Should we think of you as the consolidator or the seller?

That's a very precise question. I said we are always willing and open to participate or drive consolidation if it makes sense and create value. So we'll be there if something happens.

Okay. And secondly, 1 to 2 platform investments, but this is the first one in close to 10 years with Spectre. So I mean, should we expect you to, let's say, integrate Spectre successfully and see what happens there before we could expect to spend even more of the BioMar revenues on another platform near term?

It's also a good question. I think I said also, we are merchants. If a great opportunity comes, then we will consider it and then we'll see what to do. We are not locked in a governance box. We need also to see what creates most value for us and for our shareholders. And so we are open-minded on that. But we are not, to be honest, actually pursuing a new platform investment for the time being. Now we first need to see what happens with the one we have. But things happen. A lot of -- the world is moving fast for the time being, yes.

And the last question for this session, I'm the timekeeper. So Yiwei, please go ahead. Yiwei from SEB.

Also on CapEx, could you maybe talk about your current manufacturing setup in terms of automation? I'm a bit surprised that you mentioned that you indicate the big CapEx is behind you. I mean the largest competitor now to Europe, China. I mean we see a lot of Chinese companies now entering into the next phase of manufacturing, a lot of digital platform, a lot of smart manufacturing. So what status on your portfolio companies?

And maybe I can just overall say, you also -- CapEx, we see that as capacity -- as a big capacity extension. We also saw that Thomas showed was it DKK 2.8 billion or something we spend to run the company on a yearly basis, I think our maintenance and maintenance is just screw and bolts and so it's, of course, also digitalization and a lot of that close to DKK 1 billion. So we will -- we continuously invest in automation, in digitalization, use of AI, et cetera. Maybe also the 3 companies coming will elaborate a little bit on that. But -- so you are right, but we are also on the ball on that.

So I think we will stop for questions now. There will be plenty of opportunities for further questions later. We will have a 10 minutes break, opportunity to get more coffee. Also use the break to see the exhibitions from our businesses. We have a selection of what the 3 businesses here are doing and should be fairly easy to look for yourself and -- but also feel free to ask any of us from [ Scotland ] for the businesses. But let's meet again at 10:45. [Break]

Now we will hand the word over to one of our CEOs, actually the newest kid in town. Lars, just in from Spectre from our newest acquisition. Lars, fairly new CEO in Spectre, fairly new to Schouw & Co. So a lot of expectation. Lars, please go ahead.

Thank you. Thank you very much, and thank you for allowing me this opportunity to present Spectre today. Actually, I have a question, how do I change the slides? Thank you. Before I get really into the case, and let me tell you a bit about what Spectre actually do. So we are developers and manufacturers of technical outdoor garments for the active lifestyle. And what we do is just a couple of examples here. We work with your base layer. We work with the mid layer and we work with the outer layer. We are especially good in the mid-layer and the outer layers and examples here of the products. This is an example of a highly technical Gor-Tex jacket that we create. And you will find when you look through it that there are many, many details in this. Actually, we use 17 different machines and 96 people to create products like this. In the other end, also actually an outer layer, but for a very different purpose for trail running, for really elite runners, you have something like this here, also a very technical product. If you feel it in the [ break ], you see there -- you can hardly feel the fabric. It is so, so light and you can imagine sitting in a production trying to put this together. This is actually taken just this week from our newest factory in Vietnam, where you can see the team working on this style. It takes a lot of partnership, it takes a lot of skills to be able to put this together in a very nice way, lots of technical skills in the back. Might be difficult to see from a distance, but we have laser cutted the brand logo in the back of the shirt here. So if you wear a white T-shirt under, it will stand out. So you find in many, many details in the products and maybe many capabilities needed to do the products. So to tell you a bit about why we believe that we have an interesting future ahead of us in Spectre, we have an interesting market we operate in. We are building our business on long-term partnerships, and we have built basically the platform to deliver on our 2030 targets. So today, I'll tell you more about why we have been chosen by the brands, how we will grow towards 2030 and what we prioritize to get there. And if you have questions along the way, you can ask questions in the end, but you're also allowed to just break in, just raise your hand if there's questions, then I will answer to the best of my abilities. Spectre at a glance, we are actually a company with quite a long legacy, almost 80 years old, established in Ikast, in Denmark, where we are still headquartered. I have a fantastic team around me in Ikast. It's a rather small team. We have 40 people only in Ikast, where we focus on sales, customer relations. We have senior management, and we have supply chain capabilities, which is very important in our industry, very important for how we interact with our customers. Then we have 5,500 colleagues in Vietnam. We operate 4 factories. And with the new ownership in scope, we are changing our fiscal year from something April, March to calendar year. And when we look then at the 2026 calendar year, we expect to do DKK 1 billion revenue with this EBITDA margin of 15% to 17%. Introducing our market, if you look at the total global apparel market, it is huge. And within that market, there is a niche of functional apparel. And within that niche, there is a function of premium outdoor apparel, and that's where we mostly operate. We see that our niche is a growth rate that has been stronger than the general apparel market. And we also believe that, that trend is going to continue because we've seen surveys that more and more people engage in outdoor activities, and we also see that more and more people identify themselves with this active lifestyle and wearing sportswear also many other settings than on the mountains. I think many of our Gor-Tex [ jagers ] will never make it to the top of Everest, but then they might make it to a [indiscernible] in Tokyo. Our segments, we serve 4 segments. And when I say 4 segments, it is with a very heavy weight on the outdoor and mountain segment. This is our core. This is where we are coming from. This is where we're really strong and have by far the most of our business. One of our fantastic brand partners here is Arc'teryx. Then we have high-intensity sports is really growing for us. We see a lot of trail running, a lot of running around the world growing with focus on intensity and performance. So this segment is growing quite significantly for us, and we also see ASICS as a real winner in this market. Hunting and fishing is a smaller niche with smaller players, but we see more and more people wanting to have dedicated apparels for exactly their sports. And then we have something very small in workwear and it's not a big part of our 2030 strategy, but it's just to show one of the examples of where we could perhaps also grow longer term because there is a lot of similarities in something like workwear to what we actually do in this high-performance outdoor clothing. Our place in the value chain, you will find in one side of us, you have the people doing the fibers and doing the textiles. And in the other side of spectrum, you will have the brands, the ones being passionate about creating the product and designing these fantastic products for the outdoor people. Those are our customers, of course. And they engage with someone like us. We do a lot of co-development with the brands. So that means that basically, you can imagine that a brand comes with a product and say, I have this idea of this fantastic product that we have to bring to the outdoor and they have a design for it and they have some technicalities specified for it. And then they use someone like us to codevelop the product, turn it into an actual product, finding out how do we make it, where should we so and where should we cue and how should we put the product together. And once it's done, we take care of the manufacturing. We have a long legacy with our partners, 13 years of average cooperation with our partners, more than 20 years with our longest-standing partners because we build these close cooperations where we get to know each other and we improve together how we work on the products. We are largely protected from material cost deviations because a big part of the materials is the fabric. So for example, this one here is a Gor-Tex fabric that is made of, and that fabric will then be nominated by our customer. And that means we still handle it. We still sell the full product as an FOB price for the full product, but the pricing of the of the fabric is done by the brand. So that largely passes through. We have a long planning horizon, and this is a little busy slide, I'm sorry, but this is basically just to tell you that it is not about that someone just comes and say, "Hey, I have this product. Can you show that tomorrow?" And then 5 days later, I pick it up and "Thank you, that's my product." No, no, when we have a new product that we start with, then we have this -- this is actually an example and you see on the table. This is a tech pack. This is 70 pages of technicalities that the brand has done, and this is the product they want. But coming from this to this, there is a way. So we translate this into something that can be actually shown. We do a prototype. We will often have workshops with our partners. They will come and visit us in Vietnam. And we go through the prototype, we take corrections, then we make another round, we do samples perhaps. And that means that from the start of products until we are actually delivering the bulk production, it will often be 1.5 years. That gives us a fairly long running, but it also gives us a good visibility on what we do. And then on top of that, we have something that the fashion industry doesn't have because we have 60% to 70% of what we do is carryover styles. So a lot of the styles we do, they carry on season after season, and we can optimize it together with the brand, and that creates the stickiness in the relations that we very much like and value. So looking more towards the actual business, and I'll show you some numbers also in a minute. The reasons why customers choose to work with Spectre, we do believe that there is something about us being close to the brands. So most of our brand partners, they are Western companies. And we are headquartered here in Denmark, where we also have affinity in Germany and in Latvia. Our main competitors, they are all Asian companies. And of course, they are good at what they do. And of course, there's a strong competition. So -- but we have something about being close in mind and culture and geography to the brands. That's something where we can build relations and we can work closely together there. We are known for very high quality and very strong technical capabilities that together with this co-development also kind of lock in the brands that if you want to do new complex styles, then we are definitely a preferred partner. And then we are frontrunner on responsibility. Responsibility has been a core part of Spectre. Spectre used to be family-owned, right? And it has been part of the family's DNA for so many years that we want to do things in the right way. And also in this industry, we want to be the ones who change how and improve how apparel is made. And I'll come a bit back to that later because we do believe that, that gives us a specific edge. This strategy has improved the business quite long -- quite well over the past years, strong growth even if you go 10 or 20 years back in time, and here is just the most recent years. We've seen a big COVID peak and then a market-wide decline afterwards. But in general, we see 22% annual revenue growth. And with this EBITDA margin, 15%, 16% is where we are able to perform. In the past year, we have made the foundation for our future growth from this new base. We have implemented a new ERP system. So we now believe that we have the state-of-the-art ERP system for our type of business. We have D365FO implemented. So we have that platform in place. Then we built a new large, our most modern and largest factory in Vietnam. And that means that we have the capacity also to deliver on our 2030 ambition. And then we secured this wonderful new long-term owner, and we're extremely happy to be here today with the link to Schouw & Co. We see a great cultural fit in this relation, and that gives us both strategic advice, gives us someone to talk to about our thoughts about how we want to grow the company, and it gives us some more muscle also to target new opportunities and perhaps even bolder opportunities when we move ahead. So our 4 factories that we have today, the first factory in Vietnam was from 2016. That's our headquarter in Vietnam today. Also, and that's where we have our development team. I didn't mention that, but actually, this team developing the close here, it is 100 white collars just involved in preproduction, as we call development that we have here, very specialized people. Then we have another factory that came online in 2021. And actually, this year, we extended that factory to double size. That's the only factory that we don't own ourselves. This is a rented factory. So -- but that was extended. So we have opportunities to grow there. We have a large factory in the south of Vietnam. And then we have this new factory that came online in July and the pictures before of the nice colleagues making this was from this new factory here. It is scaled for 3,000 employees. We opened it in July. We opened the first line. And last week, when I was there, we have 500 colleagues now working there. So I think that that's a scaling that we could not do in many places in the world. The ambition towards 2030, I said this year, we expect DKK 1 billion, and then we are looking into something in the direction of doubling towards 2030. We say DKK 1.7 billion to 2.0. That is kind of our target range we are shooting at. And of course, how to get there driving growth is very important, and I'll tell you in a minute a bit more about where that growth is going to come from. Still increasing competitiveness is very high on our agenda, and we look more and more towards digitalization, but also automation in the factories. And this new factory that we built will be kind of our flagship factory to showcase what we can do step-by-step in automation, then building team and culture and keeping our lead in responsibility. Looking at where the growth will come from, we have -- most of our growth and the most important part of our growth is from these long-standing partnerships. So we think that there's a really good base in that. We believe that 60% of our growth towards 2030 will come from partners that we work with for many years, and we know each other very well with several of them, we have this kind of joint business plan we call them, but we try together with the brand and envision where will the brand be in 2030, how will we be a part of getting to that point and then doing a joint forecast. Of course, there's some dependency on the brand actually performs, but it gives us a very, very good planning horizon. Then in recent years, we have onboarded 8 new brands. And they are now in this ramp-up phase that you saw before. We believe 25% of the growth is going to come from these brands. And then only 15% of the growth is going to come from all new brands that we don't serve today. So that's not so big a part, but we have a funnel here to work with these brands and try to get in the next right brands. And it's a very important task for us in terms of securing the growth also after 2030 because that's where these ones should be the one kicking in and come over here. Then with our new ownership on top of that, we will also be curious on M&A opportunities. We don't have to do M&A. We do have a lot of organic growth opportunities, but we do see some interesting opportunities that we -- that could be interesting to explore further on the M&A. When talking about growth, it's very important for us also to remain focusing on what we call responsible growth. And that actually means that we also have some demands on the partners that we onboard because we truly believe that standing out as a responsible company in our industry means something. So we would like that the companies we work with, they also share this ambition of being responsible. And I'll not take you through all of this, but we work across people, environment and then really trying to be the ones leading the changes in the industry. And we use renewable electricity. We have LEED Gold-certified factories. We reuse our waste. And when it comes to people, then there's something about paying living wages, not a minimum wage, but paying living wages. We are 93% that gets the living wage. Of course, we wanted to be 100%. The trick is when we onboard so many new people to get them ramped up, but the industry standard, that is 30%. Then our factories are fair trade certified, and that means that a lot of the revenue we do also accumulate a certain bonus amount that we then allocate for societies, for our colleagues and for their families, societies and do events where we kind of pay back to the communities that we work in. We would like that the brands we work with also want to take part, if not in all of it, and at least some of it, and they can really benefit from working with us in terms of building their own credibility and their story to tell how they are going to make sure that the ones going in the outdoors enjoying nature is also supporting nature with the products that they buy. Looking at risk, we are focused on customer risk. We only serve 20 brands today. And for us, that's a wonderful way of keeping complexity at a reasonable level, so we can really focus working closely with our partners. Of course, there is some kind of risk then, as I said, to the brand's performance, and we mitigate that by integrating very deeply with the brands. And then, of course, we have this growth strategy that we would like to add more significant brands in the years to come. We also have just one production country that is Vietnam. We try to mitigate that by making sure that we have global shipments. So in terms of geopolitical risk, we ship to so many countries that we are not too exposed to one country. We have around 20% shipments to U.S. So there's a limit to how much we can be hurt by specific countries initiatives. Our factories are spread across North and South Vietnam. So that also gives us some range there. Ideally, in time, we would love to have more geographies added. Paying attention to scaling the organization and never fail as we grow is a core focus as well. So in summary, we believe in Spectre that we operate in an attractive niche. You can see we have 1% to 2% market share, we believe. So we have a lot of white space. We have a lot of opportunities around us. We believe that we are in the right place of the value chain where we have the brands on one end and the textiles on the other end, and we work with some of the most technical products that you'll find there. And that's where we see -- you can also do the best business in this area because it is highly technical. And then we believe that we have the platform to support it with the right partners and with this full service model, our own very new factories. Remember, our oldest factory is 10 years old. So it is very new factories that we operate, and you'll see that when -- if you ever visit them. We are frontrunner and responsible business, and we are building on this good revenue development, and we have also with that, a good visibility for the years to come. Thank you.

I think we will open up for questions to Lars. And again, state your name and where you come from.

Yiwei from SEB. Two questions from my side. Firstly, could you talk about if you have lost any customers in the past?

Yes. We have lost very, very few customers. We have offboarded a few customers that we onboarded that we thought was then too small or the fit was not right. So that can be kind of a natural part of that. I think we lost one customer during the COVID time during this extremely high boom that was there where probably it was hard to satisfy everyone in the right way. But there is -- that's basically what we have seen. So in general, we do not tend to lose customers.

Okay. And how often does the brand partners shifting their partners like you? And what is the motivation for them to do? I get it's a very competitive market you mentioned. And I guess the cost of changing partners is quite expensive.

Exactly exactly. It's a good question. And that's -- it's both good and bad actually because the brands tend to be very, very loyal to the ones they work with. They are actually also many of them reporting on not changing partners because they also feel that there is some loyalty in working with the same partners and improving like that. So we find brands like [ Petragoni ] and many other brands strategically, they do not seek to change partners. So in that way, it is very, very stable. What we normally see is that when we have the opportunity then to onboard someone new because that's also that could be hard, right, because people are not looking for new partners. Then it is especially with the brands that is growing or expect a lot of growth that needs new partners. That's where we have the best opportunity to come in. And it's an important part of our task is to kind of choose the right partners because there are winners and losers on the brand side.

Claus Almer from Nordea. So as you said, it's difficult to attract and lose clients, but you also mentioned one of the slides that you want to grow the share of wallet. But I guess that's equally difficult to do that as these volumes are being produced by one of your competitors.

Yes, but that's less difficult at least. That's difficult at least because they have plenty of new styles that they come out with every year. So as long as you can attract your fair share of those, then you have a good opportunity. Then we have also seen and probably still seeing an out of China movement that also hit the industry very much in Vietnam and also help Spectre, and there's also still some momentum in that.

And then with now 4 new -- 4 factories, wouldn't it be smart to have one big and then you could automate? Or automation is not really your thing, is too complicated?

You must remember that these factories, the new one here is 3,000 people. And when you see these areas in Vietnam where we would like to attract people, then it's not in the middle of a big city. So actually finding 3,000 people that is in a fairly good commuting distance, that's kind of a limitation. So they come in on scooters every morning. We have these huge, huge, huge [ spike ] ships for 3,000 scooters. So if you club everything together and say, okay, we want 10,000 people in one location, we would have to attract from such a big range that it wouldn't be optimal.

So that also means you can't automate reducing the number of employees being involved in production?

Not like 50% or something like that. What we can do and what we are looking a lot on now is on the whole warehousing side, having automated warehousing systems with also placing rolls and picking rolls and transport through the factories. And so those are the things we are looking at now. You can consider many kinds of various transportation of garments and pieces of garments, cut panels, we call them. And so -- but to automate a big chunk of the zoning, that's hard. We have it. And you will see on some of the products over here, you will have auto selling for some operations, you have auto [ piercing ] and so. But we are still at a level where that's maybe 5% of the zoning activity. And that will not jump to 50% like that. So jumping to a level where you can just say one big factory, that's too early. I think then we will need [ humanoids ] in the factories.

Okay. Just last one. shipments, that's on the cost of your customers, hopefully.

Yes, we deliver FOB.

Ulrik Bak, Danske Bank. Just a question on the customer concentration. So the top 5 customers, how much of revenue do they make? And what's the duration of these customer contracts?

Top 5, I'm not sure that I have the exact number in my head, but it's at least more than 50% coming from the top 5. And the duration of the contracts, the contracts is actually a partnership. So basically, if a brand would want to offboard very, very fast, then legally, they could do so. But with the volumes that we do and with the complexity size we do for those brands, it will also take a long time then to take it somewhere else, right? So we try to base it on partnerships. And there's a lot of trust and partnerships in this. And that's more how the whole industry operates than what you've seen in many other industries where you see much, much, much more legal contracts about and who then price to what. We really work as partners where we talk about things, and it has worked very well.

Yes, perhaps on that, the customer contracts, are they exclusive for the entire product portfolio of these customers? Or is it product specific?

And the companies, they will probably normally use 5 to 15 producers for their portfolio. So they have several and some are good for some things, some are good for other things, and they also derisk with [ that ], and they use multiple countries and so for that. So depending on the size of the company, we have some smaller-sized customers where we are doing almost everything that they have, and we have wonderful cooperations on that. And then we have others that are very big, but we do maybe 5% of what they do.

Yes, Sindre from Arctic. It would be interesting to hear a little thoughts about, let's say, what's the capital intensity in your business, the reinvestment needs. But my main question is more about -- you have expanded into -- or you're in Vietnam, you have just made a probably a big investment in a new factory. Whereas when we look forward, I mean, Optimus is coming or robotization, real wages are likely growing faster in Vietnam than, let's say, at least in the Western countries. So -- and you have -- well, when they're full employed, close to 10,000 employees, how should we expect you to, let's say, keep ahead of competition as a reshoring tariff wars, even though Vietnam is not specifically much hit yet? I mean it's kind of maybe a more difficult landscape to navigate in the future than it has been for the last 20 years.

Yes. I think you're right. There was multiple questions in that. I'll try to answer as good as I can. When you talk about capital intensity, we are around 25% net working capital of revenue. So we do have some inventories, of course, that we have to fund. When you look at the investments in the factories, I think we have an advantage that the factories, they are not that expensive, at least maybe not as you would expect, a factory like this that is 25,000 square meters and is set up for 3,000 people, that's around DKK 200 million investment, including machines in the first go. Then, okay, in time, we want to add more sophisticated warehousing solutions. And so that will add more. But it's not like it's DKK 1 billion investment to do a factory like this. In terms of competition, I think that's why I said also that we focus a lot on increasing competitiveness. And that is, of course, a demand. We are basically OEM producers also, right? So we have to really stay on top of our game. We have to look into what can we automize, I'm saying, how can we use digital solutions with our new ERP system, can we get more into some also automated AI solutions in how we operate. We have 500 white collars with a computer in Vietnam. So that's also a lot. And even though many of them are sitting very close to production and maybe registering things, it's still a lot of white collars that -- potentially we could look at how can we make more efficient as we grow. And we are lucky that we have the growth, so we can support this in a good way. So -- but I think in terms of when we look at the countries, we still see that Vietnam is the right country to be in. We don't see salaries going out of bounds right now in Vietnam, and it is a very efficient production country. The efficiency of the lines and the factories is very, very good.

Otherwise, then I would be so happy that we are right on time. So thank you, Lars.

Next up is GPV. GPV has, in our ownership, undergone an extreme transformation. We acquired GPV in 2016. At that time, the revenue was around DKK 850 million for the year. Now it is around DKK 850 million per month. Bo has been with the company the entire time and been heading GPV through this tremendous growth, and Bo will talk a little bit about GPV. Go ahead.

Thank you, Kasper. Hello, everyone. It's nice to be back, and I'm happy to give you an update on GPV. My name is Bo Lybaek, and I'm the CEO of GPV, and I've been that since 2008. When we participated in the Capital Markets Day 4 years ago in 2016 -- in 2022, sorry, GPV was entering a new very exciting period. Since then, we have completed a significant transformation of GPV and built a much stronger platform. GPV is the second largest European headquartered EMS company, and we have a global strong position in industrial EMS. Today, I would like to explain to you where GPV stands, how we have developed, and why we believe that there is a strong value creation ahead of us. There are 3 main messages that I would like you to take away from today. First, we have a strong foundation in place after a successful integration of CCS Group and Enics. Second, we have a balanced customer portfolio well positioned to capture market share in attractive segments and geographies. And third, we are prepared to take part in the consolidation in the EMS industry. I firmly believe that together, these elements provide a big and good basis for future profitable growth for GPV. Let me briefly introduce GPV and put it in perspective. In 2025, we reported sales or revenue of DKK 8.7 billion. We are around 7,500 people working around the globe to serve our customers. We're having sites across Europe, in Asia and in China and in Americas. And we are selling or delivering products to our customers into 62 countries. We're producing and we're delivering around 39 million products to our customers every year. We are known in the market for having a very good service offering. And that includes -- and I'm on the top left part here, electronics, cable harness, mechanics, test development, product application design and aftersales service and often box build products, meaning semi-finished or fully finished products. Our core focus, and I'm on the top -- on the bottom left is high-mix manufacturing of EMS products and quite often mission-critical applications. So we typically manufacture complex products with demanding requirements to quality, to reliability and to flexibility. We are also recognized by our customers. Earlier this year, we were awarded Supplier of the Year 2025 by Grundfos. A few weeks ago, we, from Schneider Electric, got the Sustainability Excellence Award 2026. And I'm very happy about also these recognitions from our customers. So in short, GPV has a scale, and we are strong and specialized with industrial capabilities. At the Market Capital Day back in '22, we presented a set of priorities. We wanted to develop -- and I'm here on the left-hand side, we wanted to develop global key accounts, growth with attractive customers, further standardize our business platform, optimize our operational footprint and drive operational excellence. Overall, we have delivered on the main elements in this plan, although that the journey has not been entirely straightforward. In the market, we have been affected by stop for new business and reduction in demand from a few larger accounts related to the Enics performance before the merger. This has affected our reported growth. At the same time, we have won significant new business, as well as gained new sweet spot customers, what we earlier typically named hidden champions. So these customers, they have a size, they have a business potential, they have a segment profile and a geography requirements fitting well to what we are good at, our footprint and our capabilities. Internally, the Enics integration has been completed in line with the merger plan. We have created a new organization. We have streamlined the footprint. We have strengthened efficiency and productivity, and we have initiated a OneERP journey. On ESG, we have exceeded the original target we set for reducing greenhouse gas intensity, and we have a world-class LTI or lost time injury rate below our target when we're talking workplace safety. On the financial side, top line has more or less been in line with the ambition. However, profitability and return on invested capital has not yet reached the full ambition level, partly because of the stop for new business that I just mentioned and also because we have had some underperforming selected sites. But targeted actions have been put in place, and we are progressing in the right direction. If we zoom further in on the key financials and look at a longer perspective, also here, the development has been quite significant. Since Schouw & Co became an owner of GPV, actually, it's 10 years ago, it was in 2016, we have completed 2 transformative acquisitions. The CCS integration progressed relatively smoothly and shown also good tracking on the financial development. The Enics integration was more demanding. The merger happened at the same time as the global supply chain crisis was at its peak, and we were under pressure to deliver Enics past due orders. Following the merger, we reported, I think Jens also mentioned it, in 2023, a record high sales of DKK 10.4 billion. But in that nice figure, that was also included a significant amount of extraordinary material costs, which we passed through to our customers and of course, also the delivery of the past due orders from the Enics. That is the DKK 1.4 billion at the top. So ordinary activities, they were lower. And as these FX normalized, our reported revenue was declining. But despite these challenges, the combined business today is standing much stronger than before, and we have a super market position. For 2026, we expect on revenue between DKK 8.6 billion and DKK 9.1 billion in sales and on EBITDA between DKK 710 million and DKK 550 million (sic) [ DKK 750 million ]. That means in EBITDA ratio or margin around 8.3% and return on invested capital around 12%, and it's excluding goodwill. So it's a nice uplift compared to the last couple of years. During '24 and '25, we have used time to carry out significant structural changes in GPV. And these changes are now paying off. We have adjusted our footprint, and I'll come back to that on the next page. We have simplified and optimized our organization. That means we have reduced white collar in group function and in selected sites. As examples, we have closed offices across Europe, and we have also closed the de facto Enics headquarter, so it is no longer there. So in total, these effects have made our business more efficient, more profitable and the financial performance is moving back in the area what you could actually expect and where GPV had its potential to deliver. Coming back to the footprint, as I promised. We have a stronger footprint with higher efficiency and higher capacity even though that we have consolidated from 19 to 14 sites. We have consolidated primarily in high-cost Europe, and we have expanded in low-cost and best cost areas. Our productivity is significantly better today than it was, and we have a total higher capacity. This means that we have a stronger, more efficient and better invested setup, and we have a better balance between proximity, really high-cost and best-cost manufacturing. If I should sum this up, we have a OneGPV with one operating model across the entire company. We have a stronger footprint, It's optimized and it's in good balance. We have a balanced customer base, and I'll come back to that here in the next couple of slides. We have a strong organization, which is future-ready, and we have also been working a lot with resilience. So our supply chain robustness has also increased. And we have a special task force in place also to handle the challenging situation that we have currently on supply chain. So our approach to both the CCS and the Enics integration was to move fast on the customer side. Maybe some can remember, I have said "prompt merger in the market," and then to -- upwards to work with operational integration step by step. This has given us a proven integration model that we can also use going forward for new opportunities. Let's now turn from the internal to the market. The overall EMS market is expected to grow. The segments where GPV is operating in is expected to grow with approximately 5% per year. Within the market, there are also segments opportunities, which are very interesting. It's, for instance, CleanTech, it's Data Centers, it's Semiconductors and it's Defense. These areas are structural growth areas and they grow maybe a little bit below, maybe a little bit above 10% per year. It's also segments where there are typically high demand and requirements for reliability and durability on the electronic products produced and delivered. If we look at our organic strategy, we have focused that in 3 dimensions. So it's our customers, it's our segment and it's our geographies. So that is where we play. We want to win new sweet spot customers. I already mentioned this with sweet spot. So that's where size, business potential and segment fits to our capabilities and our footprint. But most importantly, we also want to increase our share of wallet with existing fantastic life customers because we want to keep our very strong position in industrial EMS. But we also want to give additional focus to segments where there's high growth potential. And it is, in particular, CleanTech, Data Centers, Semiconductor and Defense, as I mentioned also earlier. We are operating in these areas already, but let me give a couple of examples on that. Within Data Centers, we deliver to several of our larger accounts, different products, which is then at the end going into Data Centers. And this year, we have won our biggest order ever in GPV, in Data Centers, and it has the potential of more than DKK 500 million. The actual ramp-up in mass production is time-wise, not fully clear. In Semicon, we have 5 long-standing customers, and we have seen bookings for '27 being double the level as what we average has seen in the last 3 to 4 years. So there's also a lot of things happening there. When it comes to the geography, we will follow our customers where they grow, whether it is in the main markets or in regions. We will expand when our customer pipeline and the business opportunities deem it necessary. We have a well-balanced and very diversified customer group, and we are serving around 350 customers. No customer is above 7% of our annual revenue and top 10 is right now around 40% of our annual revenue. If I look a little bit back to this with the top 10 customers, then we have reduced that from more than 44% down to this 40% level. And that is also fully in line with what we communicated in the Enics merger plan. So this customer mix reduced the dependency and gives us a healthy mix of customers across different customers and different segments. In addition to the existing portfolio, we also have a strong pipeline. Right now, the pipeline is at a target of -- is at 107% compared to our target. And we have 1,500 active cases, nearly always around that level, and we have around 100 must-win cases. And we are driving that very structured. It's run by one of our Swiss guys. So maybe you've heard about Swiss watches and being on time. That is what he's like to be. I would also like to say when -- in our industry, when you have a win, it takes some time for ramp-up and for mass production. Typically, it takes somewhere between 18 to 24 months before we are really in mass production. And with the current supply chain challenges, this time might even be a little bit longer. So it means that when we have a win, it does not turn into revenue the day after. Our revenue has been flat in the recent years despite that we have been winning new business across our customer portfolio and have a sound underlying growth actually above market rate. I mentioned earlier that due to the Enics performance before the merger, 4 global accounts had actually announced stop for new business. We have been able to lift this. And of course, we are happy about that, and we can restart growth to these customers. A few large accounts has also reduced significantly. Two had decided to reduce demand before the Enics merger. We have then had to live with it. And one has decided to outsource due to internal free capacity and one has substituted our China sites with a local Chinese EMS player. It's not so that we have lost any of these customers, but they have just reduced the business, which has been hard enough. Looking ahead of towards 2030, we expect to continue to grow above market rate as we've been underlying during the last years. And this ambition is supported by the recent wins that we have had, the potential that we have with our existing customers, the fact that these global accounts are now back on stream and we can start to work with them and the opportunities that we have in our pipeline. During '26, we have also communicated about our strong book-to-bill. And today, we have a total backlog of DKK 14.1 billion. So if we successfully also execute on our M&A strategy on top on the organic growth, we have a potential to reach DKK 15 billion in 2030. If we now go to the right-hand side to EBITDA. EBITDA margin was in '24 at 7%, and we are expecting in '26, the 8.3% level that I mentioned, an uplift of 17%, which I'm actually happy to see. But I'm more happy -- even more happy to see that our EBITDA margin has increased nearly 2 percent points through -- or during the last 5 quarters. That is really encouraging. So this improvement reflects the structural changes that we have been executing. And it also means that the gap or the distance to our ultimate ambition has been reduced significantly. As revenue growth will materialize, we see a higher capacity utilization, and we see that being reflected in a higher EBITDA level and margin, which will bring us back to the 10% level, which is our ambition. The future growth that we are talking about here will not require that we rebuild our platform. Of course, the M&A is something separate. Our platform, key employees, square meters is already there and the higher capacity utilization will help us to generate a higher profitability. We are carefully managing our inventories and will work and we do work with the entire supply chain. This discipline remains a core priority. Due to the current challenges in the supply chain, I, however, expect that we will see interim inventories increase to a certain extent. But our longer-term target for 2030, that is an ambition of 25% of annual revenue. CapEx has fluctuated as we have invested in expansion, et cetera. The long-term average CapEx we are seeing at 1.6% of annual sales and should be sufficient to fund both maintaining activities and expansion activities or investments. Return on invested capital is today expected to be at the end of the year around 12%, and we are sticking to the 2030 target to be above the 15%. So far, I have been focusing on the organic growth case. We know from the CCS and the Enics integration that GPV has the ability to act as an integrator, as I already mentioned. We continue to look for strong cases where we can add on to our organic growth with bolt-on acquisition, selective bolt-on acquisition and also customer site takeovers. Every opportunity we evaluate against a clear value creation requirement. And I can also tell you that in the last 2 years, we have been looking at several cases within segments like Defense and MedTech, but also cases where we have seen potential to strengthen our core further. We have remained focused on our long-term requirements, but the cases have at the end, not lived up to our expectations for value creation. That does not mean that we are not continuing to be looking around for good cases. And if the right opportunities remain, we are also ready to go for it. But we will remain selective and also disciplined. Let me conclude and come back to the 3 messages I gave at the beginning. First, we have a strong foundation in place. We have an optimized footprint, and we have one operating model across all of GPV. Second, we are well positioned for growth. We have a balanced customer portfolio. We have a good position to increase share of wallet with our customers, and we have good traction on winning new business. And third, GPV is future-ready to take part in the consolidation of the EMS market. Thank you very much.

Strong message, Bo, and we will now open up for questions, if any. Claus is always faster than everybody else.

First question regarding you taking market share. You're also not that well positioned in the Defense and the Data Center area. So taking market share growing faster than the overall market. Is that because you're going for the white spots? Or are you going to really dig into these higher growth segments? That will be the first one.

Thank you for the questions. I think I'll start a slightly different say, our market share is very low. So -- but of course, if you win something, then you win market share. But it's actually the actual wins, which are super important for us. And we have decided to put more focus on these 4 sectors that I mentioned and also the 2 that you're mentioning, Data Centers and Defense. I do not agree with you that we do not have a position in Data Centers because we are actually delivering to many of our big customers, different products going into Data Centers. Defense, you know GPV's legacy. When I entered into GPV, we had a lot more Defense than we have today. So we are building back. So actually, in Finland and in Denmark, we are doing quite well. In the rest of Europe because Defense for us is a European game. The rest of Europe there, we are still searching for our way in.

So you growing faster than market is because you are tapping into the faster-growing segments? Or is it all of the above?

It's everything together. It's also the traditional core focus on our business, where we have been growing above market rate.

And then just a final one on the 2030 target, DKK 15 billion, including M&A. Is that important for your margin target? Or why is it so important to have it in your target?

I'm not sure I understand your question.

So the question is no, you put in DKK 15 billion, which is quite specific number on revenue. Yes. And then you have this bucket M&A. When will M&A happen? What are you going to buy? I'm just curious why you put that into your target.

Yes. And DKK 15 billion is, of course, a figure. So you could say if we reach the DKK 14 billion, DKK 990 million something, then we are not achieving the target. So it's maybe not so important that it's exactly DKK 15 billion, but it's super important that we get back on a growth track and M&A will come when it come.

Other questions? All right.

Ulrik Bak, Danske Bank. Also to the revenue growth. So if you exclude the M&A part, what is the organic growth that you're looking at?

That is an organic growth above the market rate.