Bystronic AG (BYS) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome here in Niederonz to our operational headquarters of Bystronic. My name is Patrizia Meier, and I'm Head of Investor Relations. We are very pleased to have you here in person and also a very warm welcome to those of you following us on the webcast. Before we start with the presentations, let me make a few organizational remarks. First of all, kindly note the disclaimer at the end of the presentation. Secondly, since today, in the canton of burn, it's mandatory to wear face masks even with the events under -- and using COVID certificates. We, therefore, kindly ask you to wear your masks throughout the entire day. Thank you. Let us now take a look at the agenda of today. Our CEO, Alex, will introduce Bystronic, our attractive end markets and our growth Strategy 2025 to you first. The Strategy 2025 is based on 3 key pillars or growth pillars. Therefore, the presentations after Alex will provide you deep dives. Christoph will firstly talk about how innovation is key for our product portfolio. Alberto will give you more insights about our software solutions, and Eamon will elaborate how we drive growth in our service business. After a coffee break, Michael will provide you an update on our ESG road map and Beat will wrap up with what all of that means in terms of financials. We will have a short Q&A session after every presentation, and we will take the questions from the room first, followed by those submitted via chat in the webcast. Kindly note that we might not have time for all your questions right after every presentation, but we have a longer Q&A slot also reserved at the end. We have 6 members of our management team here today that will present to you. And also during the tours in the afternoon, you will have the chance to meet a few of our other leaders. For example, our Chief Operating Officer, the Managing Director of the production site here and also our Head of the Solutions Center in Oberbipp. We trust that this will give you a good feeling for our strong management team here in Bystronic. With this, it's my pleasure to hand over to Alex.

Patrizia, thank you, very much. Good morning, ladies and gentlemen. It's a great honor to welcome you here today at Bystronic's headquarter. My name is Alex Waser, as you can see, I'm actually in this role since 2013, early '13. But it's a particularly great honor for me today because it's the first Capital Markets Day that we are presenting to you as a pure play. What you're going to see today is really around the story of Bystronic, and we feel what you're going to see in the next couple of presentations and slides from our experts is that we are in really attractive growth markets. We have laid the foundation of growth already. And we feel after the first year is already gone, although it was an interesting year that we are on track to deliver our 2025 strategic financial targets. If there is one thing I feel you need to take home with you today, then that is really what explains what we're all about. We are an innovation leader creating value for our customers in attractive markets, as I said, and we see potential for sustainable growth, and we'll hear about that more today. We strive for industry-leading profitability in an asset-light business model that also includes our strong balance sheet that gives us firepower to complement our portfolio. But most importantly, besides everything else, today, I'm very honored to present you some of my team, a very strong team, probably the strongest team, I ever had in my time here. And that is really what's all about. It's about people, and I'm very happy that we'll get into this a bit more detailed. But what is it? What we are doing is what is it all about Bystronic itself? Bystronic is in an industry of sheet metal. Sheet metal is everywhere. We'll get to that in just a minute. Sheet metal is everywhere. And if you have customers that work with sheet metal, you need to have systems that are in the first and the second part of production, which is laser cutting and bending and that is what we're doing. And of course, supplemented by automation, by software. We'll hear a lot about software today because we see this as one of the keys for future growth. And we have reinvented ourselves when it comes to service sustainable revenue stream that we are building quite strongly. From 2020, our numbers, we came from around about CHF 940 million or CHF 1 billion in 2018 to CHF 800 million last year. 7% EBIT. We have around about 31% sales and service organization and 9 plants. So that's the footprint that we have right now. But what is sheet metal and what is it made out? And why is this an interesting material? What you're going to see later today is sheet metal is available in sheets, 3 to 1.5 meters or 4 by 2, it's a little bit like paper, just in other size or it comes in coils, you see that often in automotive size. And of course, the material itself varies of what we can work with. But the beauty of sheet metal is an ideal balance between strength and lightweight. So you can see that a lot of constructions are being built with sheet metal, but people are not that aware of it. And obviously, it's highly recyclable. And that really makes a lot of sense. In addition to that, our customers or the end markets are really all over the cycle. We have early cycle customers or industries, mid-cycle and late cycles. And we could go from utilities to technology to communication services, to real estate to agriculture to industries. And that is why we feel we are really balanced throughout the cycle. A few examples. I guarantee you that you have been in contact with sheet metal already this morning without even -- without probably even saying it. A coffee machine, for instance, is nothing else than sheet metal with a bit of a cylinder in it. When you probably took an elevator this morning from your house to get to the street, and elevator basically is sheet metal. Or if you have a fruit -- if you had a fruit this morning, well, most probably a tractor from a farmer has been used to actually gain this or a harvester and so on. When you look at Amazon, when you look at storage systems, the largest warehouse, that's all sheet metal. And that's actually interesting. So our customers are in a wide range of industries and products around the globe. Even more important is when you look at the megatrends, e-mobility or electronics or let's take urbanization for a moment. Basically, what we're seeing is that urbanization, meaning people moving into cities, which means more infrastructure is being built, which means more construction is being built, more elevators being built and so on. So we see that directly related to our business is really -- are really some of the mega trends, and that's quite interesting. We see the market growing, I don't know, 2% to 4%, something about that. As you will see in a minute, we are targeting to grow above that, meaning winning market share. The market around about the addressable market, we estimate that to be about CHF 9 billion. Biggest part of that actually is the first part of the process, which is laser cutting, followed by bending and other areas. This is an interesting slide. We've actually never done this and talked about our competitors in the past. But when you take a market share when you take a market of, let's say, approximately $9 billion, the addressable one, then basically about 3 companies hold about half of the market share. Then you have a few midsized players and then you have a long tail of other competitors. And when you look where do we have potential, then we see the expansion in applications as a significant opportunities because we have many applications not covered yet compared to our other companies out there. In addition to that, Bystronic is one of the few companies actually has managed to get not only products in the gold segment, but also delivers and produces silver segment and entry-level products, so we can actually leverage in different market segments. In addition to that, you will hear from Eamon today, our standardized modules on service that creates a really nice revenue stream, a stable revenue stream that is actually nicely accretive to our business. And also, you will see today how solutions and software-driven solutions actually support our customers. And that is when Alberto will talk about that. So we'll see about technology today. We'll talk about service today, about software and solutions. And those are significant opportunities, and we see already now how we are accelerating in those fields. So what are our customers? And I could ask that quite often. And in a way, that's hard to explain because a lot of our customers, about 80% of our customers our job shops, contract manufacturers. And they are active in either 1 or several fields or industries that we just talked about. Then we also have large companies like the OEMs, you can see here in different areas. We've got actually quite a long list of those. But common in all of this is that they all have pretty much the same challenges to deal with flexible production cycles, with varying lot sizes, with high speeds, day-night shifts. And what's also nice about that story is that none of the customers or customer groups are really higher than like 5%. So we have a large distribution of customers. This is my last slide before I hand over to the technology part of our business. And we just want to reiterate and confirm our midterm targets. We want to be above of those 3 metrics, 5% annual growth, 12% EBIT, where we came from and 25% based on an asset-light business model. And again, what you're going to hear today is the core of our strategy and the proof points of the core of our strategy in leading technologies that create value for our customers. In addition, you will see recurring revenue models on the service side and industry-leading solutions with integrated software and automation. By the way, does anybody know where the name Bystronic comes from? And those that know shouldn't say it. Well, it's driven by the 3 founder families, Byland, Schneider, and Trösch and then the ic was added to it. I hope I have said that correctly. So with this, I would like to hand over to Christoph on the technology side. I'm very happy to welcome here on the stage. Thank you, Christoph.

Thank you very much, Alex. Yes. Good morning, everyone, and also a warm welcome from my side to today's Capital Markets Day. My name is Christoph Ruttimann, and I'm the Chief Technology Officer of Bystronic. I joined the company back in 2017, and my background is in micro engineering and laser technology. As Alex has pointed out, we are in a very attractive market, and we have an ambitious Strategy 2025. I would like to explain you now the first strategic pillar, which is called systems in a bit more details. Innovation is the key for our portfolio. Therefore, I would like to show you why innovation is somehow the lifeblood of Bystronic and how we can make our customers more successful. We will also discuss on how we ensure a constant innovation flow in our daily business to ensure that we remain at the forefront of technologies. And I will present you some examples on how we leverage on our innovations across markets segments and geographies. But before we start, let us ask a customer and let him talk on what he thinks about Bystronic's technologies. [Presentation]

In everything we do, we have the future customer needs in mind. And as you have seen in the video, this means offering the right products in the right segment for the right price. And of course, based on future-oriented technologies and based on digitalization and sustainability. For every new product development, we closely collaborate with customers to understand their end-to-end process and their needs. We have to develop highly innovative products and systems. And to do so, our innovation strategy is based on 3 main pillars: spotting, developing and creating. Firstly, we focus on identifying trends and recent developments. Secondly, we invest into start-ups and new technologies, thanks to our venturing fund. And thirdly and most importantly, we co-create with customers and partners. And our foundation to do all this is our global R&D organization. Following this strategy, we ensure our position as an innovation leader in our market. Let me go now into more details into these 3 pillars. The first one, spotting. We have developed an in-house technology radar to understand the market dynamics and future trends. Once we identify a relevant trend or a technology, we look to develop features and commercialize these. As an example, you can see on the left side on that slide, the technology radar for the year 2019 for the area of bending automation. Amongst others, we have identified machine vision as being a key enabler and the key enabling technologies for the future. After that, we have carried out a case study where we have applied vision technology to a cut part, and you can see that on the picture on the right side, to see whether this part has been cut properly, whether there are any quality defects that would not -- that would prevent it from being bent in a later stage. So thanks to this technology we were able to reduce waste, increase yield and, of course, speed up the process. And in 2022, this feature will be a standard offering for all our bending automation products. Let me now explain you the second pillar of our strategy. This pillar is called developing. With this pillar we ensure to have access to the latest technologies that might act as an enabler for innovative products for Bystronic. We have set up an internal corporate venturing fund that allows us to make 1 to 2 investments into start-ups every year. We are not aiming in investing seed money, but more like Series A or Series B investments, and we're also not acting as a financial investor, but we are acting as a strategic investor. And the 3 main objectives of the fund is we want to have early access to disruptive technologies that Bystronic does not have in-house yet. We want to strengthen the collaboration with the start-ups, which might be a possible M&A targets in the future. And thanks to a board seat that we get through this fund is we want to actively shape these technologies for the Bystronic needs. Give me -- I want to give you now a proof point of such a venturing invest. In 2018, we have invested into the company, Embotech. Embotech is a spin-off company of the ETH Zurich, which main goal is to optimize movements. So this can be a self-driving car, but this can also be a laser machine, for instance, to optimize its speed or its precision. So thanks to this co-innovation with Embotech, we have developed in a very short period of time, a feature. We call it Quick-Cut, I will say more to that later on. It's a feature for tube cutting systems. And the good thing is, actually, since the launch of that feature, almost all sales of our tube cutting systems, all our customers have chosen this option or this feature. But now let me show you how this looks like. So on the left side, you can see a normal cut. This is a tube that is being cut by the laser cutting head and on the right side is this feature -- powered by these features. As you can see, the head is moving much faster. So the part is -- has a much higher throughput. So our customers can operate very -- can have much higher throughput and not only higher speed and higher throughput, but also higher quality. Maybe one more remark to Embotech. This company has just recently won the Rising Star Award, which is one of the most prestigious start-ups awards in Switzerland. So this shows that we do not only invest into the right technologies, but also into the right companies. Let me now explain you the third pillar of our innovation strategy. Originally, Bystronic comes from the high-end, high-priced machine segment. This is, for sure, still our biggest segment, but it's not enough to be future ready. We cannot only play in the top-end segment, but we also have to offer lower priced, lower performance solutions depending on the customer needs. To do so, we are systematically developing a portfolio of several segments. We call them Gold or high end, Silver or mid-range and Bronze or entry-level segment. A good example to explain this is the other laser machines. So on the one hand, we have the so-called ByStar machine, which is it's a high-end Gold segment machine developed and produced here in Switzerland, in Niederonz. And on the other hand, we have the DNE machines, entry-level segment machine developed and produced in China. And in the middle, we have the codeveloped by smart BySmart machine, which is a combination actually of both worlds. So it's a co-development between the Swiss and the Chinese teams. The goal actually of this development was to combine the Western quality mindset with Eastern cost efficiency thinking. And so there is roughly a cost difference of 40% between each of these 3 segments. And furthermore, the BySmart actually is the machine that you can see depicted on that slide is the first product that we are produced locally on a worldwide basis in our factories in China, in Switzerland and Americas, the very same product. So this approach has been successfully done not only with cutting but also for bending and tube, and we are on the way to repeat that again for automation. Let me give you now another example on how we leverage and co-create innovations. Back in 2016, Bystronic has acquired 51% of the laser machine manufacturing DNE in Shenzhen, China. The main goal was to have access to the high-volume Chinese market, but also to have access to cost-efficient technologies. And since 2020, last year, Bystronic holds 100% of DNE and we are now actively promoting the DNE brand globally, thanks to another co-created product, the so-called DNE Global Machine. In 2022, we will launch this product in selected markets outside of China. So the machine is again based on a Chinese development at DNE and then refined in Switzerland to make it ready for being sold worldwide. And why do we leverage this entry-level product on a worldwide basis? There are 3 reasons. First of all, we want to have access to the highly price-sensitive customers, who did not have laser technology before, but who wants to get on this technology because it offers much more flexibility than conventional machining technologies. Second, we want to have a foot in the door at these entry-level customers, so that we can grow together with them, create a lock-in with these customers and ultimately sell higher performance and higher priced machines. And the third point, if we don't do it, others will do it. Bystronic has a unique opportunity now to be the first mover among the top 3 players in our market to address the gold, silver and the bronze segment on a worldwide basis. So these 3 main strategic initiatives I just explained you, are enabled, thanks to our global R&D organization. So the R&D teams are organized globally, but with a strong and local footprint and competency centers. An important point that I would like to mention for all product development worldwide is to focus on the end-to-end process of our customers and not on the development of single components. For components actually, we choose partnerships with leaders in their respective market. One example of such a partnership is our supplier for the laser source IPG. The laser source is no longer a differentiating factor, but rather on the way to its commoditization. Therefore, Bystronic has stopped its own development of its own fiber laser source and we focused our innovation on true creation -- true value creation along the process chain of our customers. Besides systematic approach of design-to-cost methods, I would like to draw your attention to another example I would like to point out, we put a strong focus on sustainable product development, and you will hear more about this also from my colleague, Michael Prager later on. We have started to implement systematic life cycle analysis for all new product developments. We focus on clean tech solutions so that they become a standard and not only an option within our products. I proudly want to show you some proof points that our innovation strategy works. Every 10th employee of Bystronic is engaged within R&D. So this makes us a very attractive employer for young talents, but also for established professionals. Not less than 80% of our innovations are co-created with customers and partners. And already now more than 30% of our product innovations are related to sustainability and directly linked to the sustainable development goals defined by the UN. We want to make our customers more energy efficient and help them to reduce their CO2 footprint. We also measure our innovation, thanks to the so-called innovation ratio. You can see that on the top right of this slide. So we measure the number of sold systems that have been introduced to the market no longer than 3 years ago compared to the total volume of sales. And as you can see, this ratio is above 50%, and with a strong and steady growth during the past 3 years. Or in other words, every second product Bystronic is selling is not older than 3 years. Of course, innovation has to be protected and that's why we apply a double-digit number of quality patents every year. We have more than doubled the number of filed and granted patents during the past 5 years, while at the same time, we became much more efficient. We achieved approximately a cost reduction of more than 40% per patent family or in other words, the number of patents has strongly increased at stable costs. Ladies and gentlemen, all of these proof points show that innovation and technology is one of the main drivers and the key element of Bystronic's Strategy 2025. As an R&D organization, we contribute especially to sales, thanks to our innovation power, but we also contribute to the profitability, thanks to major efficiency gains we can achieve every year. And of course, the customer is always in the center of our daily work, thanks to our systematic co-creation approach. The so-called not-invented-here syndrome does not exist within Bystronic. Thank you very much for your attention. And now I'm happy to take your questions.

Question concerning the addressable market that needs development over the next 5 to 10 years. Logically, the 3 major players are going to gain? i.e., there is smaller competitors that will drop out. But can you give us a feel for why you should gain more than trump or those 2 competitors that you have today in that oligopolistic situation. What makes you better than them? And why should you have higher market share gains?

Yes. I can tell you that probably because we try harder would be the one part of the question. No, both companies that you mentioned are very professional companies without a doubt. But like everything in life, we are targeting specific customer groups and we try to understand exactly where our sweet spot is and try to get in. And winning market share against highly professional companies is very, very hard. We know that. But the latest numbers that we have gotten from this year and from last year actually confirmed that we have been able to slightly gain market shares in different thing. Part of that has simply to do how well you treat your customer customers, for instance. For instance, in 2020, even though we had a significant reduction in our business. We didn't let go any people at all outside of what we would have done anyway. But we created a lot of programs to keep the activity very, very high. So last year, in November, while everybody was saying the world is going to stop spinning. We have seen a massive uptick because we went through with our customers. We constantly were in contact with them. We worked with them. We had virtual meetings with -- hundreds of virtual meetings with them. And at the moment, they were ready to get up again we immediately got the orders. That would be one example. I think we are really -- the team that you're seeing here is it's not just the technology, it's also the people and the quality of the people we have, and we really work very hard on every single customer. That's a part of our secret sauce, I would say.

Can I just add a second question concerning modularity of the standardization. Is it the fact that many of these clients do have several offers and utilize several technologies, not just yours but others as well?

Yes, there was a question. I think it wasn't -- the microphone wasn't on. There was a question about the modularity of our solutions against -- compared with our customers or with other OEMs. I mean, basically, what we are selling to our customer is not just a system that you have seen here, whatever it might be. But we're also selling them investment security, in the sense that our solutions are scalable, so you can add automation to it, you can add whole systems twice or 3x or 4x. And you will see one of the examples actually coming up soon. So I think it's more than just being in a competition on one single module. It's also about making sure for the next 7 years or 8 years or whatever long that is, that system will be very, very good, taken care of by our service, and Eamon is going to talk about that. But also, you are able to protect your investment by adding to it whichever way you want to do it in the future. And I think that's a very -- that's one of the USPs that when we talk to customers, it's quite important to them. It's not a one-off event. I hope I've answered your question.

If I can add...

Yes, please. This is really part of our strategy, of our value we want to offer to customers. We say we are open. We're open to third party. If we need to integrate, let's say, also a competitor product into our offerings, then we do it because at the end it's a customer who decides which product you want to use for which application. We do not say you need to exclusively go with Bystronic.

That's a very good point.

We just got you. I think Mr. Bamert had a question. Is that correct? Maybe 4 or 5 questions, so we don't.

Firstly, you've opened up the laser stores. So when did you stop those activities? Do you see the competition in particular, #1? Are we organizing their activities and how dependent are we talking about the laser source provider?

So we stopped our own development in 2016. Yes, we see one of our competitors who is developing its own laser source, but not only for its own purpose, but also for, let's say, also selling it outside of its business, creating some volumes there, yes, but it's a very hard market. We have seen it -- we've seen it every year. Actually, we do a price benchmark every year with the major players within the fiber laser technology. And there, we see -- we have seen in the past 5 years, a massive significant price war actually also and to see that this -- the laser source itself is really on its way to a commoditization. And it's not a differentiating factor anymore. It's really the process that counts and not the laser source itself. And that's why we strongly believe that our decision to stop our own development was the right one, but to work with the best partner.

Yes, one more question. Okay. Could you probably go to Slide 11? With the market positions with your competitors? Yes. Okay. That's a very interesting chart. We see the dots with different sizes, drove 20% and 15% and you have 12%. But on the dots below, the only difference is actually in the range of applications, all the other fields seem to be in a similar size or position as the others. The big difference seems to be in the range of applications only. So what is it? What the others do, what you don't?

Okay. That's a very good question. When you look at some of these cost -- these companies are also others. We are active in 2 applications, in laser cutting and bending. But there are also other applications, let's say, automatic bending, let's say, welding, let's say, punching and so on. So let's say, there are 6 or 7 applications, we are active in 2. That's why we have said that the addressable market is around about CHF 9 billion. And obviously, we think that it is smart to have a broader offering for -- with more applications. But at the same time, we don't think that we need to own all the applications ourselves. So for instance, with welding, we have done a strategic cooperation with a company called CLOOS from Germany or actually they are being bought by ESTUN in Nanjing. And so we are offering today welding cells that are Bystronic branded but the technology is really from one of the leaders in the industries. But that's what it is. It's expanding along the applications of our customers. That's one of the key strategies. The size of the bullets, you could argue, should it be a little bit bigger or smaller. It's more about the qualitative points that we see a significant potential actually to grow along the application chain of our customers, the value chain of our customers.

So you are adding applications?

Well, I can either agree or disagree to that. But yes, we would like to do this.

Yes. I think we'll move on to the next slot. Thank you very much for your questions. We have time also later on again. So we'll move on with Alberto and Software Solutions.

Today, I'm here to introduce you our Smart Factory Solutions. But first of all, let's listen to one of our customers. [Presentation]

Well, in Bystronic, we understand that there are different kind of customers. And each one of them have different level of digitalization. Bystronic provides a real Smart Factory Solutions for each one of them. The goal of digitalizing customers is to generate efficiency and flexibility to adapt themselves to unexpected changes. With our solutions, the Bystronic strength our existing customer relationship and attract new potential customers. All this, for sure, will give us an increase in solutions and software sales. But let's just start from the very beginning. And the beginning is to understand customers' challenges. We have been more than 35 years in this industry, and we think we understand, we have learned to listen to our customers to face their challenges. Let's talk about some of the challenges, heterogeneity. Customer has different brand of machines, customer different kind of software, different processes. And all this generates different data sources in their companies. Speed and planning. We have 2 big kind of customers, job shoppers, which depend on the fast quoting and fast execution and manufacturing to compete against others and large customers, OEMs, original equipment manufacturers, what efficiency is based on planning and schedule all the processes in time. In both cases, the communication between the departments is usually not enough and not efficient. And more important, when they try to communicate with suppliers or providers. And another big important pain point would be the analysis of information. Usually, the decisions are based on past experiences and on subjectivity and never are based on real data coming from their machines, their processors and their softwares. Digitalization is not simple project that one customer has to face in one time line in one moment of their life. Digitalization is a big journey for the customers. And in Bystronic, we would like to partner with our customers to go with them during this journey. To start from stand-alone processes like cutting, bending, where the key features are the innovation, the quality and the technologies as Christoph explained before, to a fully automated production cells where the key factors are the material flow management, scalability and modularity of the systems. This automation will give to our customers the possibility to work 24 hours per day, 7 days per week on the whole year. And the last stage on the way to the real is Smart Factory Solutions, where the main advantage is, is the seamless integration of all processes in a company, managing the full dataflow of the company. It is not about running machines. It's about running the whole company and having the production under control in real time and transparent. As I said before at the beginning, first of all, it is important to understand where our customers are located in what we call digital maturity model. There are many different customers, and each one of them is in one of those steps. We have defined it as starters, explorers, players, challengers and champion. We think that most of our customers are between the starters and explorers and this gives us a huge potential for growth. Depending on the status, Bystronic can offer them different solutions from easy-to-use, intuitive device controls, which are installed in all our machines to our advice of BySoft self-control software and BySoft shop floor software. These are 2 systems scalable and modular to manage the production. And the last step would go to go to a fully digitized Smart Factory Solution, where our system, BySoft insights will help our customers to coordinate and manage all processes in a fully digitized company. It is important. It's really important not to frustrate our customers. We need to offer to our customers what they really need, not what we want to sell them. They need to go step-by-step. You cannot drive from 0 to 100 in 1 second. You need to understand where the customer is and how -- and go with them step by step. And when I said before, coordinate and manage all the processes, I'm referring to all the relevant process of a company, not only manufacturing. I'm referring to quoting, planning or scheduling, manufacturing, measure and optimizing. This is an end-to-end process that integrates, synchronize, digitize and creates transparency in a daily process in the company and also for all the stakeholders, not only for the operators or the production manager or the management, for all of them. And all this with a fully cyber-secured environment for our customers. But let me give you one example. This is one of our customers. This is a U.S. customer. They have 2 lasers, 3 plus breaks, 6 processes and 18 employees. You see how they plan their production. In the columns, you see all days, day 4, 5, 6, 7, each line is 1 process. Each folder is the job they have to produce. And each paper is the part they have to build or manufacture. The colors are the priority. And this is how they plan their production. Imagine that you need to know where is the status or what is the status of one part? Or what is the status of one job. It's almost impossible. It's almost impossible. And this is the way they work today in the factory. But this is the future. This is what we are installing now. Our customers will not have to face with this wall full of papers anymore. Everything will be digitized. All the information will be easy to use in an iPad, in a tablet or a computer, easy to use, easy to visualize, fully configurable and available for any stakeholder, operator, production manager, the CEO of the company, suppliers, providers, everyone can have his own view of their production. And this is the beauty of this tool. It can be used in large companies on very small job shops. All this has been possible in part due to our, let's say, strategic partnership with a company -- with the Spanish company called Kurago. Back in 2019, we have the same view, and we signed a strategic partnership with them. We have started in end of 2029. We started to cocreate and to co-develop this Smart Factory Solution. And in 2020, we create our first smart factory test center in Oberbipp, you will be able to see this later this afternoon. At the end of 2020 and due to the great evolution, Kurago received the gold certification of Microsoft, which recognized their quality in software development. At the beginning of 2021, Bystronic acquired 100% of the shares of Kurago. And we decided to keep the Kurago brand on the market to approach software solutions to non-Bystronic customers. Today, Kurago has 65 employees. But where are we now in this smart factory journey? At this moment, we are installing solutions in some field test customers. We are installing it in 5 customers in U.S. and 7 customers in Europe in EMEA. We have already built sales organization in EMEA, in Asia and in America. And we will launch the first version of our software in the first semester of 2022. With this, we think that we can attract new customers, which are looking for a modern and state-of-the-art software for their factories. We will offer to our customers 2 ways of acquiring the software. We will use the business model called subscription pay-per-use software-as-a-service. Due to our cloud platform on this new system, we can provide our customers 1 initial installation of the software with the initial payment and then automatic downloads and uploads from the web, from the cloud to their premises. This will give us our customers the potential option to pay a small amount of money amount of money every month. This is a clear recurrent business for us, new for us. And then, of course, some customers will decide they want to go with a traditional standard way of purchasing software, which is call-on premise. You pay for one installation once in your life, and then if you want maintenance or if you want updates, you pay for each one of those. It's depending on customer needs. We are open to fulfill their demands in the way they want. In summary, our smart factory solution is key for our Strategy 2025. And the contribution to the Bystronic targets are quite clear. We think that we will be able to attract new customers with these new solutions. We are able to open a new business in software for non-Bystronic customers. We think we can make single-digit million revenue in the first year and we hope we can create a real margin contribution from 2023 on. This is all I wanted to share with you regarding solutions today. And if you have any questions, I will be more than happy to solve it.

There are no questions currently in the webcast. So we start with the room again. Any questions? Yes, please, Andy.

Can you talk about the offering of your competitors versus what you are offering, what you showed us?

Well, we have -- we are not focused in our competitors. We are more focused on our customers. But it's true that TRUMPF and AMADA, they are on history companies, and they also serve software. The big difference between us and our competitors is that we see this as a whole. We don't create software packages, standard software packages for different problems or different modules. We are creating a whole solution, which is scalable and modular. So the customer can start from a very few systems and grow with us. So as I said, we are not looking at different problems, not connected. We are seen as a whole. This is a smart factory journey. And the big difference between us and our customers is that we see it as a whole.

Second, USB, I would say, is that we are one of those -- that solution is able to integrate any brand. And that's different to what everybody else is doing. We don't believe that we just want to push the Bystronic brand. We want to believe what's best for the customer and integrate that, so we can synchronize the data and the material flow. So those are the 2 USPs, I think are important for you to take with you.

And from your first experiences, how open are the clients to not only welcome the Kurago sales, but also the Bystronic machine sales at the same time?

Alberto, is it okay if I take that? It's actually interesting. We have one customer that is not even our customer and wanted to have that because of exactly that point. We see that cost completely new customers are starting to talk to us that wouldn't probably have talked to us in the past because they're not looking for, let's say, a system, they're looking for an integration. And while we have now this 5 and 7, I think, test customers in total, most of that actually starts on the software side, and you see significant productivity coming out because you take the waste out of the process. But most of the time, it ends up with a hardware program as well, a pretty significant actually. So we've only seen in one case, no hardware followed the whole project. And that we weren't really aware at the beginning of it. But this is, for sure, opening us the door to customers and to discussions that probably would not have had discussions because of -- based on our existing offering today. Would you agree, Alberto actually?

In fact, the first full test customer we have is a non-Bystronic customer. It was the first one.

We will let one more question.

Yes. I'm wondering, can you tell us how many scopings you have been running this year and how many scopings you have planned for next year? And can you give us a feeling for the size of the scoping. So they are increasing the customers? Or they are similar?

The scope of the project program?

As I said, we have installing 12 customers, 7 in Europe, 5 in U.S. We will start also in Asia. The goal is to make around 20 projects this year before Euroblech. And after Euroblech, we will make the full market release. Today, we said we will launch the system first half of 2022, but it will be a limited market release. So we want to have this 15, 20 customers under control. to make sure that everything goes well, that all the products are running fast and running as expected. And then after Euroblech, I think it will be the, let's say, real kickoff for all the markets. Now we are focused in U.S. And Germany, U.K., Korea, very specific markets where the demands are very clear and high. And then as soon as this is running well, we will make it more, let's say, bigger.

Okay. And probably a follow-up. You have hired 13 people. Can you tell me where you have higher them? Is it more a relationship manager or these build software engineers or run software engineers? Can you describe this?

Yes. We -- since I came here, I came here in 2018, we have tried to build a software house inside Bystronic. The mentality, the mindset was a little bit more focused on machines. Now we are more focused on solutions and software is part of the solutions. So yes, we are hiring a lot of new software engineers to be able to build the solution and growth it in the future.

Yes. So these are developer then. Is this correct?

Yes.

Okay. I think there was one last question here, and then we'll move on with the next slot.

Question for the CEO. Can you talk a little bit about the cultural challenge, which comes along with this move that software-first suddenly here and your former engineer building the Mercedes has to realize it's moving towards more a Tesla now. Some companies tell them you have to have the hardware and software guys separately because it's completely different cultures. Obviously, you have to bring them together? What's the main challenge? And how do you handle that?

I always thought that Bystronic's biggest challenges are technology and innovation, I can tell you its culture. It's incredibly hard to bring software guys to teams together with hardware guys, with guys that do only gold segment. Sometimes, I feel like a soul doctor when I bring them together. It's really, really hard. It's really hard. But to be honest, we had the luxury to bring Alberto in, Alberto has done this all his life. Actually, they have 17, 18 years of experience to do this another company. He built it up. Kuraga was his child, and he has been able to bridge that. The software guys, when you talk to them, they have totally different processes, totally different mindset, totally different ways of working and planning projects. And as Alberto knows, we have had a lot of tough discussions how to bridge that. It's -- that's probably the most difficult thing, how to create the culture. But we have been able to bridge this largely by creating a culture of winning of wanting to get it done of trying to solve it, bring it together in a spirit of performance of a family, but performance. But I would agree, whoever said that to you, it's one of the hardest things to do. We have actually separated it. we found out that you can't have them sort of -- you need to have them physically for meetings and discussions, but then you want to create islands where they do their secret sauce. I hope that answers the question.

Thank you. Then we move on with Eamon and service.

Thank you, Patrizia. Good morning, everyone. Eamon Doherty, Chief Service Officer for Bystronic. Before I jump into my deck, let's first of all, hear from one of our customers. [Presentation]

The essence of the message that I would like to try and put across to you this morning is about the work that we've been doing within the service organization to create trusted partnerships with our customers. And indeed, the strategy that we use to deploy that is through our 3 pillars, our 3 pillars of being predictive, proactive and with people at the center. And our overarching goal in doing this is to bring peace of mind to our customers. Already this year, we've been able to develop modular services that provides our customers with degrees of flexibility where they can customize our products to suit their needs, no matter where they are on their journey. But of course, this is done within a framework, and it's standardized and aligned across all our regions. We also want to nurture long-term relationships with our customer. And one of the ways that we've been incredibly successful in doing this so far this year is by deploying the tool the 360 adviser. We'll have the opportunity to talk about that a little bit later in the deck. Our role in service is actually quite simple. It's to develop products that our customers both need and want that helps them drive their efficiencies, their productivity and ultimately, their profitability. And that allows us to achieve our commercial goals of driving strong sales growth and being margin accretive. We started this journey by traveling the world. We got in front of our customers, we understood their business models. But we also understood their hopes, their fears, their desires. But also, their challenges and their pain points, some of which are on the screen here. So when we look at downtime for our customers, that has a significant impact on their production cycles. And depending on which market they belong to it also can be damaging for the reputation. Tight production time lines. If a machine is idle, the ramifications are significant into their workflows and into their efficiencies. Limited know-how. Our machines are complex our solutions even more complex. They're multifaceted, they cover areas such as mechanical, electrical and software. And we want to be able to help our customers navigate through that complexity. And we do that by providing them with the one-stop shop in Bystronic. So how do we become this trusted partner to our customers. Well, it's 3 or 3 pillars: proactive, predictive and people. If we look at proactive, first of all, our goal is to drive our customers' uptime efficiency. And we've been very successful in doing that this year with 2 of our products. And 2 of those products is our ByCare program. Our ByCare program is our way of providing preventative maintenance contractual to our customers for all our product range right across the world. Another product that has supported us in this is the 360 Adviser. In simple terms, the 360 Adviser helps us to identify potential risks or uncertainties that the customer might face in the near future. We'll talk about both of these products in the coming slides. Predictive. We have the ability to interact with our machines, of course, with our customers' permission. And that allows us the opportunity to provide high-level diagnostics to our customers. And through that, we can predict costly downtime. One of the tools that we've developed to help us do this is a tool called our Uptime analyzer. Our Uptime analyzer, it reaches out, grabs data -- relevant data from our customers and takes it and puts it into a format that allows us to then work with the customers and figure out how we can support them better and driving that uptime efficiency. And our people. We talked a lot about machines and our tools, but at the very heart -- at our very heart of what we are in service, we're people. And it's through our people that we're able to drive that customer centricity that we've been talking about. We've been working on developing our organization to be dedicated, competent, well trained, committed organization that have a deep burning desire to provide that ultimate customer experience to our customers. You've heard my colleagues talking today that we have a number of different customer segments. And at the beginning of this year, we were able to deploy our program called the ByCare program. So this is the preventative maintenance program that we have for all our products. And basically, what its goal is to do is to provide peace of mind to our customers. It's modular. And it allows our customers to choose what level of peace of mind they want to have. And you can see from the scale on the left-hand side, the service at cost provides our customers with a small degree, a peace of mind. But as you work through the steps that gets higher and higher and higher, to our recommended care, which provides a much greater peace of mind. And you can see from the chart here that in our first year, the vast majority of our customers have opted towards standard care. But what we can say in recent months that has been transitioning further and further into the recommended care area. These programs are standard again, right across every region. What has been very exciting for us in our first year is that 90% of the products that we've sold in 2021 have been sold with the ByCare program. And what's even more exciting for us, even with that great success in this first year, when we look at our total installed base, we're still only at low double digit. So the upside potential in this area for us is really quite exciting. We currently have 4 programs within the ByCare suite. In 2022, we will be developing a further 2 programs, our premium care and our advanced care and they will greatly appeal to our larger, more complex customers. The 360 Advisor, I mentioned it earlier, this absolutely truly allows us to become and create that vision of becoming the trusted partner to our customers. So very much in every service visit that we do, the service technician will review the customers' operations within specific key defined areas. And they will review it in such a way where they will determine the threats or the risks to the customers' operations. So it's a little bit like a health check. And the positioning of this is that, first of all, the technician, he or she will identify any risks, any challenges, any threats. They will then offer up the recommended actions. And then most importantly, show them the benefits that the customer will get from carrying out these actions. People, I said that's what Service is. We're people. People genuinely enable our customers' success. This -- our people are truly our biggest differentiator within the service organization. You can see some of the numbers there. And the numbers, of course, are important. But what's equally important is providing those technicians with the knowledge, the skills and indeed, the culture to deliver on that ultimate customer experience. This year, we've been working very hard in making sure that we provide that knowledge to our people, working on error codes, symptom codes, decision trees. We've also been building our online content. So making sure that our technicians have access to the knowledge where they need it, when they need it. We've also transitioned our training from being traditionally product-based to future competency-based. Also with all our competency centers, all our technologies. We've now brought that under 1 global function for our training organization. That allows us to be much better aligned, provide standard training and be better at execution throughout all our regions. Our Service business today -- our service business has always grown, albeit with modest rates of CAGR of about 4%. Our goal is to go from $160 million in 2020 to $330 million by 2025. It's also to take our service business from about 20% of our total revenue to about 26% of our total revenue. Standing here today, I can say that we are in line with those expectations. We've had a strong first year. We've done this by, of course, executing against some of the products that we've shown you this morning. But for us, most importantly, we've done it through a deeper understanding of our customers, their challenges, their businesses. I mentioned that our goal is to drive our customers' efficiencies, their productivity, ultimately, their profitability, which allows us to achieve our commercial goals of driving strong growth with accretive margins. In conclusion, service does make up a key element of our plan. It is providing and will continue to provide over proportional growth into our 2025 strategy. It does, as was mentioned earlier, provides stable recurring revenue to our organization. We are investing strongly. We're investing strongly in our infrastructure, our systems, our procedures or processes, but also we're investing strongly in our customer-facing employees. And this will allow us in the not too decent future to enable us to be margin accretive to the wider company. With that said, I have the opportunity to take a few questions.

Yes. Please Any questions from the room? And maybe a short reminder before that, for those of you on the webcast, please feel free to enter your questions also in the chat box below the webcast. Yes, please.

Yes. Just 2 questions. First on the services force. Do you see the 100 technicians to be added in 2022 as a base for the next few years. That's the number you need to add? Or is there some kind of a plateau at some point? And also in which region are you especially recruiting this force? That's the first question. The second question is, can you maybe say a word on the margin today of the Service business? Is it dilutive? And when do you see this dilution to basically end?

The first part of the question was a little bit difficult to understand, but I'm going to try and...

Just -- you say you recruited 70 technicians in 2021. You will recruit 100 in 2022. Does it mean that you will go even higher in '23 or does it plateau at some point.

Okay. Got it. So I should point out that our goal this year is to actually hire an additional 100 technicians. We're currently at 70. And you might ask yourself, well, would you get to 100 by the end of this year? The answer is yes, because our recruitment was loaded towards the back half of the year. What's exciting for us on the recruitment side, though, is where or how we're filling these positions. We're filling them hugely from referrals from our existing population of service technicians. And for us, that is a huge testament to what we're doing and how we're doing it because, of course, you don't refer somebody unless you're certain that it's the right company. So Key to all of this has been the engagement and the empowerment of our organization. Our goal is next year to continue with that development. And we're not short of great ideas to leverage sales growth within service. We understand our customers' needs. So we do not see a slowdown or a drying up of opportunity in that area. So I would expect that we will continue to grow our footprint within the service organization. There was another question in that...

It was about the margins. Shall I take that?

Sure.

So what it takes and maybe Eamon can talk about this a little bit more in detail, but it takes quite some time actually until such a service technician and newly hired service technician gets productive. So that takes 12-plus months until he is fully productive. So what we do see the additional investment in 2021 and '22 are not yet at the margin accretiveness, if that's a word, as we will expect then going forward into 2023 and 2024.

I think you had answered it perfectly. Regional.

Regional.

Yes. So what we can say is service makes its business from our installed base. So wherever the installed base is, that's where we gain our sales. We see no variation or deviation from any market region in that situation. So in simple terms, wherever there is a machine, we generate revenue.

Maybe 1 more comment that I may add. The 100 service technicians came out of a plan that is about a year old. At the time, we didn't know that we would grow service business by 30% based on last year and the total backlog of like 60%. So actually, we cannot fulfill all of the service contracts that we have currently, so we need to continue to actually do this. And so I think we go with the plan that we have. But I think the more successful our programs are, the more service technicians, of course, we need to have to fulfill that. And service technicians have 2 functions. Of course, 1 is the installation of the systems. But the other 1 is the service of our customers. And right now, we are very heavy in the installation base because we have seen this record order entry the last couple of 12 months. So I hope that is answering your question.

And coming back to this -- and coming back to the service technicians you said that you most got them from referrals. And when I speak to other companies, they tell me it's quite difficult to get good service technicians, and it looks like here that you are well on plan, and that's quite easy for you to find people. Is this the case? Or do you have to buy quite attractive salaries?

I would say, first of all, no matter whether an economy is down or up. It's always a challenge to find good people. Where we have been very, very successful is, first of all, forward planning. We have a huge strong networks within the industry as well. So we always have people -- nearly always have people in the bench throughout all areas. We're at high, wide and deep within our customers. We always have a strong eye on our competitors as well, if there's -- wherever there's talent, we work hard to find it and use it. From a competitive perspective, what I would say is, of course, the package mix are part of that, but being able to provide someone with an opportunity to work on and pardon the pun here, cutting-edge technology is very exciting for a service organization. So that's another part of it as well. What I also think is, yes, the referrals has worked very, very well for us. But why has the referrals worked very well for us? And it comes back to some of the things that we do to make sure that our service technicians have the skills, the ability, the knowledge to be successful. And I think that is a big differentiator for us and maybe some other industries.

Thank you. Maybe let's take 1 last question, and then we move on? Or if not, okay. Then we'll have a coffee break. And before we have a coffee break, thank you very much, Eamon. You talked a lot about peace of mind, Eamon. So we have another short video clip that will hopefully make you also smile a little bit about peace of mind that we offer. And after you make the coffee break, I think we'll make it a little bit longer. So we're back here at 11:10. [Presentation] [Break]

Welcome back. Welcome -- also, a warm welcome from my side here talking about sustainability and ESG. My name is Michael Prager. I joined the company in March this year. And prior to this, my background is in industrial B2Bs mainly in mining, aerospace, automotive and packaging. So what we want to talk today really is about how we interpret sustainability at Bystronic. And for those who follow our journey, it is no green washing. We really thrive for impact. We look really at the opportunities where we have the biggest impact, which is that our customers, we'll go through this. And last not least, we announced that we want to do our first sustainability report next year, and I will give you a little update on that one, too. But first of all, how do we interpret sustainability at Bystronic? We are looking at our organization and our customers and also at our industry and beyond. And I have some examples further with this. Again, our organization, I said that before when I joined, I feel Bystronic has a lot in terms of sustainability and ESG. We never looked at it through the lens of reporting or strategy. Now with the function in place and also with the governance structure in place that I will show you in a minute in the sustainability report now gives us a phenomenal opportunity to get it into action and up. Customers and value chain, very important. You will see in the decarbonization strategy that we have launched that the biggest impact is with our customers, and Christoph spotted this already in his point for technology. We are focusing on sustainable engineering more and more important for us. And in terms of industry, when we want to become the industry leader in terms of sustainability, which I believe we can. And quickly, then we have also the opportunity to help the industries, and we are receiving already lots of requests from even other industries asking whether we can help them how we do this. So there's a whole need for sustainability services. When you have an opportunity as a sustainability officer, ESG Officer, to start with the strategy from scratch, it's wonderful because then what you need to do, you go from an outside-in mindset. It's no longer enough to go incremental, I reduce harms step-by-step, year-over-year. This is not enough. Today, the world expects the company and a leader that you also drive value for environment and society. Moving forward, you will see that from Bystronic as we are aligning closely with the United Nations sustainability goals -- Sustainable Development Goals. Then you do a materiality metrics where you're looking with your stakeholders, and we really did this in detail with customers, stakeholders, people to see where are the major points there you can make impact. You see those topics to the right. That's what the so-called material topics are. And these will guide our principles of where we put our action. So in the next 3 slides, I really want to walk you through how a, for our organization, we drive sustainability culture; for b, our customers we drive sustainable engineering; and c, for industry and beyond provide sustainability service. Our organization. Look, first is organizational capabilities is key to us. We are sending executives to bespoke ESG trainings because it's not enough that I'm centrally leading this with the header he's the ESG guy. We need to decentralize it in the organization, and that's how we implement and get more power into the organization. Employee engagement, we are doing these things with experiences. I'll give you one example. With [ AMAG ] recently, we announced a so-called [ Emotion ] Day. So 2 days where [ AMAG ] brought all the electric vehicles here into Niederonz. Our employees got 2 days to test them. And if you arrived this morning, you see outside the road blocks, the road works, these will be 20 charging stations on the roof next door. We will do PV installations next year and as of '22 in this office, we are moving to renewable energy. That's what I love with Bystronic. We're doing the right things. We're doing them extremely fast, and that's cool. So I would say that even from the headquarters, we are so close next year to maybe even look at net 0 for our headquarters. Talent management is critical. You heard throughout the day, our people are amazing contributors to sustainability. It's fantastic every week, I'm getting questions, suggestions what we can do. It's amazing how the culture works. Sustainable engineering with customers. I mean that's what the CTO talked to you about, energy-efficient solutions, example from a CO2 laser to a fiber laser, reduced already 40% of energy efficiency or improved energy efficiency. We -- all the machines you heard are modular based, so we can really reduce the amount of material. We have life cycle assessments, so we look in details how we can further improve our offering. And with the kind of a preowned business model, we still -- we already have a circular business model in place where we're bringing no matter what brand machines back into our refurbishment centers, refurbish them and sell them again to the market as a business model, okay? And Christoph said that 30% of R&D is already linked to the Sustainable Development Goals into so-called Scope 3. And I will give you a little bit background when we talk about decarbonization in a second. Last not least, this is part of the press. Last week, we did a so-called Late Night Show. So where we brought 6 industrial partners, ecosystem partners on stage in our facility in Gotha. Topic, sustainable management. We reached 1,700 customers on YouTube and get so good insights what's on their mind because they are telling us, help us, do us. And as I said before, sustainability service is something we are receiving requests from industries out and beyond sheet metal right now. Help us, tell us. This consultancy of sustainability is in demand, and we see a great opportunity to help people moving forward. At this stage, I would like to highlight also that thanks to these events or videos, this is all done by the corporate comps team, and I'm very proud to lead this team for me. This is an industry-leading team and especially in digital events and so on. We are setting the benchmark, and this will help us to differentiate moving forward with the brand. Coming to decarbonization. Earlier this year, I said, and we did this in record time, thanks to the entire organization of operations. We wanted to drive our carbon footprint, Scope 1 and 2. This is now done. We are currently in auditing the data. But having a carbon footprint evaluated, doesn't mean anything if you don't act on it. So we have immediately started the decarbonization strategy. We are looking at the toughest standards, which is the science-based targets, 1.5 degree by 2030. And this, I think, any company in today's world should do this. We have now looked at this, that would mean 4.2% year-over-year reduction in CO2 across the globe over the course of 10 years. You hear us saying that next year, we want to link ESG performance, sustainability performance with executive compensation. We, as a management team, have said that we want to take this toughest carbon target for us to drive. And we are not ready yet to announce science-based targets publicly for 1 and 2 for an organization because the database is auditing right now or we are auditing and I think we want to make sure we have the right data in place. But I mean, we are very ambitious on this front. To the right, you see 1 chart which demonstrates, however, I said before, we don't want to do green wash, so you can write-off, you should ask me like yes, but Scope 1 and 2, you make all this emotions around this. But look, I mean it's only 2% of it, it's true, but you need to start somewhere. Evaluating a Scope 3. And for those of you who are not familiar with the terminology, Scope 1 is all the emissions. When we produce a laser machine here in Niederonz, everything which is emitted by producing this machine, that would be Scope 1. Scope 2 is the emissions related to the energy we are buying. And Scope 3 is the emissions you're emitting when you -- with your customer at the lifetime of your product use. And you see that Scope 3 is huge for us. And when -- that's why you heard here our CTO speaking about energy efficiency, features, start-up and helping a client to decarbonize, that's where we have the biggest impact. Also with software, with automation and service very much. So you asked ourselves about where are we with in terms of governance, in terms of sustainability. Look, I'm since here since March. I've presented twice or 3 times in the Board already. I received a lot of great support from them, and we have very good feedback and knowledge in the Board. So -- and they are helping me a lot, and I appreciate that. ESG and sustainability is linked to the executive committee. So that's where we built the strategy. I hope I can demonstrate you that we are now decentralizing it and making it a part of the execution. We have started a Sustainability Council, cross-functional, not only with the departments but also with people who would like to contribute and there are so many in our organization. ESG road map. In a nutshell, governance structure completed, decarbonization strategy in place. We are progressing heavily on sustainable engineering and services. What's next? Finalizing the ESG compensation targets, finalizing the strategy, KPIs, ambition levels as a part of the GRI reporting process. That will be around Q1 next year, and we will publish our first sustainability report next year. And we're all looking forward to that. How do we contribute to the target, future-oriented business model? It's proof we have a sustainability mindset in this company and culture. Decarbonization is critical for the industry. And yes -- and you heard this throughout the presentation, people are key. We are doing everything to make our people future fit as well. So thank you so much for the quick update for listening in. Questions?

On Scope 3, you mentioned before that 80% of your clients are small job shops typically. Did you see a big difference on ESG demand between large and small customers?

So OEMs, yes. But it's coming there. The job shoppers are catching up quickly. With the event, the Late Night Show I presented was all across customers and the request for carbon decarbonization is everywhere now. So yes, it's big. OEMs, they are even more advanced. They're using EcoVadis like more processes, supply chain management. This is what's now needed and requested from OEMs. And we are -- that's part of our ESG closing the gap process, right? How we are now building all the tools, uploading them into the system. EcoVadis is a huge tool for us from OEMs, but also helping our suppliers moving forward for job shoppers. Thank you.

Next question from Daniel.

I have a simple question. What kind of rating are you targeting? Because it's a fact of life that some rating agencies don't like major shareholders. And b, they don't like double share structures.

Look, the ESG rating is broad, right? And it not only has governance in there, but E and S. To be honest, we are not good in ratings at the moment at all. And everybody knows it in the room because how could we? I mean we started in this year in March. What we are doing is we are looking at an ESG gap analysis on all our ratings. We are looking into ways how we are targeting this and simple things. It's signing the United Nations Global Compact, which we will now do. Committing to science-based targets, which hopefully we can do. So step by step, we are going there, right? So G is -- first of all, G is one element of it, but it's broader than that. We don't target ESG ratings, but we will commit to gradually improving on the ratings because we would like to move where the impact is. Luckily, ESG ratings also move in that direction, which help us. And I would say that year-over-year, you will see improvements from us on certain ratings, but the biggest impact is on the -- on where we can make the big difference for our customers.

I would have 3 questions. First, on the 42% reduction in CO2. How did you come up with that number?

So this is the absolute calculation. When you go in the greenhouse gas emissions protocol and the science-based targets, they give you various approaches, right? They tell you it's a 10% over 10 years, you can gradually go down, and that for us would be 42%. So this is what the numbers come up with when you follow this. And this would be -- is in line with all the industry standards as well.

Okay. But do you think that more is possible?

Yes.

Okay. I thought so, too. Yes.

But look -- and it's great that we are getting these questions. We are doing it step by step. I hope I could come up with and provide you that we have highest ambition, and we want to be the leader in this but we need to take also the organization step by step. Hence, we are going with Scope 1 and 2 first. And if you're going for Scope 3 because I don't care how much we reduce on 42% on Scope 1 and 2 and the biggest is on Scope 3. But we need to get the organization to this, and Scope 3 evaluation is heavy lifting for an organization. It's nice to have a rating on this, but it's huge, and we need to help an organization to get there. So we want to focus where the big impact is, but also demonstrate officially that we are ambitious and we are making progress. And let's see how we end up with this.

Yes, that would be the second question, Scope 3 targets. When should we expect them?

We have -- in our road map, we have done this, what you saw here on the right-hand side is Niederonz from 2019 as a kind of a pilot. We did a pilot on this. We looked in the way of how we automate this data evaluation because data management is critical in this field. So it's not enough to just evaluate it one time, you need to have the data system that you are not slowing down the organization. We haven't agreed on this, but we need to make progress in '22 on maybe 2 sites. And we would go also where the biggest impact is. So it's either Niederonz and Gotha that would be -- if we start with this, then this would be the areas where we go. For science-based targets, you need 60% coverage on Scope 3 in order to claim a reduction target. So -- and I haven't made that calculation, yet how much sites we would need.

And then the last question is probably to Mr. Ruttimann, CTO, how do you see ESG in R&D? And where do you see it go from here? And what are your clients telling you about that?

Yes. Thank you for this question. As I said before, we already have now 30% of our R&D developments are related to improving the CO2 footprint at the end of our customers. So we're really looking into various technologies and starting from lasers because lasers are, of course, emitting or creating, let's say, the biggest impact. So we are really looking through step-by-step in applying life cycle analysis through the entire process change to see where our potential, where we could improve, on which technologies in order to reduce the CO2 emissions at the customer sites. So we do not only do it in lasers. We also do it in vending, where we implement intelligent features that the press brake is only really on when you really need it, so like very similar like to the start-stop function within your car. And we're also working on that the customers can produce their own cutting gas, so that they can really produce their cutting gas from the air, taking the nitrogen out of the air and having this element with a solar panel. So then you get a fully autonomous production of your cutting gas and you're basically emission-free. This is also one example. Another example is that we are investigating in other process, gases that enhance the process, the cutting process in such a way that you don't need post-processing steps and you can basically save additional machines. So we are really looking at this from an end-to-end value chain. And as I said before, already 30% of current developments are dealing with these topics.

Additional questions here? No. Okay. Thank you very much, Michael. Then we move on to the last slot with Beat.

So good morning, everyone. Also a warm welcome from my side. My name is Beat Neukom. I'm the group CFO for Bystronic and I joined in May this year. So you've heard from my colleagues, they talked about the attractiveness of the sheet metal industry, where we're positioned in the market and what our key pillars for growth are for the upcoming years. And what I tried to do is now bring this all together and explain to you what this means in terms of the financials. Number one, we drive top line growth by the means of innovation. You heard it from Christoph, operational excellence and the regionalization strategy. We pursue an asset-light business model with high returns on net operating assets. I will get to that also in my presentation. And then we have a very strong balance sheet where we have further headroom for M&A to expand our portfolio. Before we look into the future, I kind of want to look back because we have proven in the past that we're successfully executing on our capital-efficient profitable growth strategy. We're looking at 4 elements. So number one, our net sales growth has been about 8% between 2015 and 2021 on a yearly basis, but that includes acquisitions. So if we exclude the acquisitions, which are mainly DNE, which was a major acquisition and some smaller ones, the growth rate on a yearly basis in average would translate to about 5% in that period that we're looking at. With regards to the EBIT margin, you've seen that we have also generated nice EBIT margins in the past. And what we have done here on this chart is with the transformation from Conzzeta to a pure play, stand-alone entity now is Bystronic, we adjusted these EBIT margins because we have taken over some of the costs that originally were born by Conzzeta. And to provide you with an apples-to-apples comparison, we have adjusted these numbers going backwards as if we are -- as if we had been a stand-alone entity since 2015. Capital efficiency is very important to us, and we, therefore, generated strong return on net operating assets also in the past. And then operating free cash flow has also been growing nicely over the last couple of years. You have seen these numbers before on the different slides from my colleagues. I want you to remember these 3 numbers, 5%, 12% and 25%. And this is the target, and I want to reiterate them for the midterm. So 5% sales growth, and that is calculated on the basis of the prepandemic levels, 2019. So we have not taken the 2021 into consideration because it's kind of an outlier. So based on 2019 levels, we want to grow 5% on a yearly basis to reach our ambition of CHF 1.3 billion revenues by 2025 and 26% of revenues coming from the service business. EBIT margin of 12% plus, which is an industry-leading metric. And then the profitability or capital efficiency, I should rather say, the return on net operating asset at a strong 25-plus percent. Now looking into these individual items a little bit more in detail. Since our sales have dropped in 2020 in the pandemic about CHF 130 million, the net sales CAGR now on 2021 latest estimate, we need to achieve an 8% sales CAGR to achieve the CHF 1.3 billion by 2025. So 8% organic, that is excluding any acquisitions. This is splitting to the service business. Christoph was talking about that and -- sorry, the systems business and Christoph was talking about that and then the service business. For the systems business, we need to grow about 7%. That is our objective to reach the 2025 target. And the first driver for that is integration, automation and solutions. We have seen high demand, especially in our post pandemic, customers have realized that operating an automated manufacturing place is actually very attractive for them because it is with less people. So we get a high demand on automations and solutions. The second driver are the different market segments we talked about before. For example, Christoph has talked about our DNE entry-level offering that we're now expanding outside of China into the rest of the world. And the third is our regional presence. That brings us even closer to our customers. Since the beginning of this year, we have a regional organization in place. And what's interesting to see on this chart on the right-hand side is that for the first time in the history of Bystronic, the non-European markets represent more than 50% of the revenues on a global basis. And then service, you heard it from Eamon. We have put a strong service organization in place, which allows us to grow the service business over proportionally at an average rate of about 12% to get from an average of 23% in this year to 26% by 2025 on a total net sales basis. We will achieve this through the programs that Eamon was talking about before this model of services, where we add another 2 services next year. And I want to reiterate that we have a very low rate, low double-digit rate with regards to service coverage on the installed base. That's a great opportunity for us. Now with regard to the profitability. To reach the 12% EBIT by 2025, which translates to about CHF 150 million of EBIT, we need to achieve an EBIT CAGR on the basis of 2021 of about 18%. So nice leverage. And I'm sure you would agree with me that this is an ambitious target. But we are well positioned to do that. With the investments in the service business, which we plan to continue to do also, and you've heard it from Eamon in 2022, we will be accretive to margins in '23 and beyond. In addition, we constantly innovate, design to cost programs as an example is one way to reduce the cost for our products, but also new innovations allow us to get premium pricing. And I want to give you one example, we just launched recently our 20-kilowatt high-end laser, the ByStar Fiber, 20-kilowatt machine. And we have been able to sell this significantly higher to the early adopters compared to prices with lower kilowatt power. And then third is our operational efficiency and our operational leverage. And I want to go a little bit into the detail about this and give you more transparency on our cost structure that we have. So 45% of net sales are related to material expenses, and we have kind of broken this down for the first half of 2021. The vast majority is related to components that we source from various suppliers, laser sources as an example, but we have clear pricing contracts and volume contracts in place with our suppliers. However, given the strong demand that we experienced at the beginning of this year and it continued also in Q3, we have sometimes exceeded these volume contracts with our suppliers and we had to renegotiate some of those, which resulted in some higher material costs for this year. And then personnel expenses represent about 28% of sales in the midterm. We also do see some leverage there. But there, we'd like to also continue to invest next year into the service organization and add on our 3,500 employees an additional 100 service technicians plus some back office support that we need, some hotline support that we need so that we do not get a leverage in 2022 but then in '23 and '24 and beyond. Other operating expenses are, to a large part, not volume related, as you can see here on the bottom right-hand corner. But this time demonstrates how we can leverage our operational efficiency in the midterm. Some pressures we do see this year, unfortunately, as any other industry has the same challenge is with regard to transportation capacity and costs. We clearly have a sellers' market there and we have seen this in addition to limited transportation capacities. A word on our foreign currency exposure, given that the euro has weakened or the Swiss franc has strengthened recently. Our main operational foreign currencies are the euro, the U.S. dollar, more increasingly now, and the Chinese renminbi. The good thing is we have, for the euro, we have a natural hedge in place since we source a lot of our components in euros, and this offset the profits we generate in the Eurozone. With regards to U.S. dollars, we have a hedging policy in place, and we are hedging on a 12-month rolling basis up to 80%. Now Alex was talking about the asset-light business model, and I want to talk to you a little bit more about this and want to give you what this means for us. First of all, we do have lean manufacturing in place at our manufacturing facilities. We are only manufacturing machines on order intake. So we don't manufacture machines just on stock. And we keep inventory levels for the components low. This has changed a little bit recently given the supply chain challenges we have experienced since the beginning -- since the middle of this year. So we have slightly increased our inventory levels this year. And then also with regards to our customers, we have internally a very strict policy in place with regards to advanced payments. So what we do is we're requesting from our customers when they place an order up to 4 payments until the machine is delivered and the first order being at order intake. This allows us to quasi finance our working capital and the growth by our customers. And it's actually well illustrated on the right-hand side, when you look at the balance sheet and our net operating assets. So if you compare the end of 2020 with the end of June this year, you see that despite the sales growth that we have experienced and the significant and strong order intake we have seen in the first half, our net operating assets have been nearly flat at CHF 230 million, a clear sign that these advanced payments have been successfully executed. Now with regards to free cash flow generation, a little bit of history with regards to our capital expenditure ratio. This has been at around 2.7% of sales. Historically, you see 2 spikes here in 2019 and 2018. This relates to the production capacity and new facility that we have built for DNE in China for our entry level and the brand experience center assembly facility. You can see a picture here on the right-hand side from the grand opening in the United States where we now can locally manufacture and assemble our products. Now going forward to give you a little bit of a guidance what we plan to do. We expect our capital expenditure ratio at about 3%. And apart from maintenance capital expenditure, we have a few special investments that we plan to do, one being a brand experience center in Korea, which we plan to open in the first half of 2022; a competence center for automation for the silver and entry-level segment in China; and the largest one being actually here next door is a global brand experience center here in Niederonz, which we expect to open in 2024. Our strong balance sheet offers us opportunities for shareholder return and merchants and acquisitions. As a result of the solid operating free cash flow over the last few years and the proceeds from the disposal from the various Conzzeta businesses, we're having a very strong balance sheet. At the end of June, we had liquid assets of CHF 480 million and are having an equity ratio of almost 70%. This allows us to take a balanced approach between shareholder return and M&A at the same time. Historically, the Board has proposed to the general assembly to let the shareholders participate in these proceeds, either through an interim dividend or as part of the normal dividend. With regards to this year, I can reiterate what we mentioned already at the H1 closing, and that is that the Board will state its position with regards to the 2021 dividend at the 2021 annual reporting in spring. Looking at merchants and acquisition. Well, M&A, you can see it here on this chart, M&A has always been a part of Bystronic strategy to expand capabilities and strengthen the portfolio. We have a good track record of acquiring entities, complementary targets integrating them and leveraging the know-how on both sides. We often have started with a strategic partnership and collaboration and acquired it fully at the end. A good example is TTM here. That is actually Bystronic's tube offering, the DNE entry-level offering in China, and most recently, Antil, Bystronic's automation offering. And you might have seen the press release that we issued yesterday that we now have fully acquired the remaining 30% of Antil. I want to give you a little bit of a transparency with regards to the enterprise value because we got some questions actually with regards to that. So the enterprise value for the full company at 100% is less than CHF 40 million. Going forward, we're screening M&A opportunities. And it's a key opportunity to expand and complement our portfolio, and we're actively looking for those. You have seen in Alex's presentation that our larger competitors have a broader portfolio than what we have along the value chain of sheet metal industry. So that is something we're looking at. Also, service and software is something which is interesting because you've heard it, it's a key pillar of our growth strategy, and we could strengthen in this area. The fourth area we're looking at is tooling and integrators. Now on the right side of this chart, you see 5 key criterias that are absolutely critical for us. We're focusing solely on the attractive sheet metal processing industry. We're looking at bolt-on acquisitions on the one side, but also medium-sized targets. They need to be profitable because we don't want to have our management teams and operational teams being absorbed in any restructuring cases. So restructuring cases are off the chart. We're also looking for solid margins, and we want to complement our portfolio to have synergy potential. Now with regards to 2021 and then also going forward, we want to reiterate our guidance and midterm targets. So with regard to 2021, this time, it's the 30th of November. Some years ago or actually last year, we would have been able to exactly give you the number how we would close the year. This year, it's a little bit more complicated because of the transportation capacities, right? We don't know whether some of the products will arrive at the customer place, and we're able to install them and then have it taken over by the customer. So there's a little bit of an uncertainty with regards to that. But we stand at the 15% as we communicated earlier. Foreign currency impacts are limited to about 1%, and we confirm the EBIT margin, obviously, depending on the sales generation and how we will close the year. Tax rate at around 21% for this year, and capital expenditure at about 3% of sales. With regards to the midterm, it's these 3 numbers, 5%, 12% and 25%. 2 of them are mentioned here. So a 5% sales CAGR to get to the CHF 1.3 billion by 2025. EBIT margin of 12-plus percent. And the tax rate slightly higher given our different geographic footprint. We're now manufacturing more products outside of Switzerland in the various countries like the United States where we experienced a little bit of a higher tax rate than what we have here in Switzerland. That's why our guidance is around 21% to 23%. Taxes and capital expenditure going forward also at about 3% of sales. This brings me to the end. And now we're opening for questions.

Yes, any questions from the room?

Mr. Waser, you mentioned before that you won market share. Can you give us the numbers of these market share wins?

I could, I could. Yes. well, it's -- market share is incredibly hard to really sort of, in general, answer. What we actually do is we are looking into very specific markets. And one example I could give you is that in the United States, you have very specific industrial statistics. And in that case, we clearly have signs there statistically proven that, that was the case. So maybe that's one little nugget I can give you. But it is incredibly hard. It's -- every year, it's a race. And we feel that through the strategy we have, we have shown that's slightly but surely we're going up that ladder in winning market share.

You mentioned slight market share win. I mean can you give us sort of a bit of a range what you mean by slight?

Well, we are a Swiss company, we're trying to be careful.

Because 1 percentage point might be slight, but if you have 12% share and you win 1 percentage point, it's quite significant.

Yes, yes.

So I assume when you mentioned slightly, it might be 0 spot 3% or a slight 1%. I mean just...

Let's agree on that roundabout number. It's -- for us, it's important that we find the way to continuously get a little bit better than last year and then get a little bit better than the year before. And that's ending up in more market share, and we actually see us on this path statistically proven. But just to give you a number, it's incredibly hard, to be honest. It will be a couple of percentages up in 5 years, just without a doubt.

Further questions, yes.

And that is organically by the way.

How far would you get with leverage when you can do a big acquisition until you get comfortable?

The question was that...

If you make a big acquisition, how are your limits with leverage you would feel comfortable?

Leveraging the balance sheet?

The acquisition, how much debt would you allow it on your balance sheet?

When Alex was talking about the conservative Swiss company, right, I mean we definitely need to be investment grade. If we were to do this, we kind of looked into the numbers and you can do the math. But we still have a strong -- very, very strong balance sheet also on the cash side. So it all depends on how big the target is that we would need to acquire.

But it's probably fair to say that we haven't seen a target that would be impossible to get to, right?

Yes.

When you mentioned expanding software capabilities with acquisitions, what area are you thinking about because I think you have great organic initiatives, what is missing there?

Maybe I can take that. Well, what's actually interesting about service is you can grow with your own service organization, and that's what you're doing. That's why you're doing -- and getting those 100 service technicians this year and next year on board. But also we could grow with local service organizations. Now unfortunately, those organizations that we have checked out in many countries, actually, those are regional country-based organizations. They are not huge, multi-country organization. So we see several opportunities in Europe as well as in United States to actually complement our service footprint with service companies -- third-party service companies. That's what we meant with that slide with a comment. Did that answer your question [indiscernible]?

[indiscernible] service?

No, those are two different things. Those are two different things. We feel currently that we are actually really well positioned with what we have done on the software side. There's no immediate need to complement that. But we do see on -- down a couple of years in the horizon, a few opportunities actually. I would say service is much closer for us to actually capture than on the software side. On the software side, currently, we feel comfortable what we have in the portfolio with Kurago and with our part. Thank you, Mr. [ Bond ].

Yes, I have a follow-up on this as well. You said medium size, probably you have mentioned it, but what is medium size in relation to sales on the funds you will invest? And what is medium size? I don't know, to be honest. If you can help me there. This will be the first question. Then I have a second one.

Let me do this. This is dangerous one here.

Are you a medium-sized company? I [ strongly ] -- is this what you are?

Yes. Yes, still. Well, large would be CHF 3 billion, small would be CHF 5 million and medium is anything between, basically. I know it didn't help you. But this -- the more I explain you, the harder it is to -- I'll leave it there.

No, but you made several acquisitions in the past and now -- and these are bolt-on acquisitions. Then I guess these are medium-sized acquisitions, is this true? Or do you see that your -- that you can -- have much more and...

Also, probably, smaller ones. Probably smaller ones. Antil was about -- we doubled sales now in 3 years, probably CHF 25 million in sales, CHF 30 million, CHF 35 million. FMG was single-digit million. The biggest one was DNE with about CHF 100 million of sales. But I would see quite a bit bigger than that actually.

Okay. And probably another way around. We have many corporate bankers here, so I guess that you pay everybody -- pay a negative interest to these guys. So is this true? Or do you have a gentleman's agreement? And how long are running this gentleman's agreement? And how long -- how much time do you take to establish that?

I didn't hear the question. Did you hear the question?

I heard the question. But I'm sure these corporate bankers, they would love to have that information from us, but...

The 45% material expenses in the first half will certainly be quite higher and the second half will be higher next year so -- or not. So what do you expect this number to do, particularly in '22? And the adjacent question is, I mean, all this the same, how do you -- how are you able to pass these higher raw material expenses on to your customers? And what is the time lag? And...

So with the service revenue, there's also -- with the service business, there's also spare parts, right? And usually, we do see better margins, lower material costs on the spare parts. So the more we can grow the spare parts, the more accretive it is going to be with regards to the material expense in total. We have been increasing prices on the spare parts twice this year. We also plan to do this next year to increase prices and give those forward. There, it's a little -- it's challenging, but less challenging to do than on the machine side. On the machine side, it's mainly through innovations, right? We have increased prices on the machine side also this year, but it is more challenging because you're going into these offerings versus your competitors, right? And -- but we have increased prices this year as well. Yes, that's what I can say.

And in addition to that, we have a program -- several programs in place to attack the material quote every year. We call it [Foreign Language], I'm not sure what the English term is for that. We attack that one. We go after lean programs, et cetera. So it's very obvious that, that part in our income statement is one that we are attacking from different sites.

Okay. So there is a mix element, there is a price increase element, there is an efficiency element. And all together, you will be able to compensate, that is the answer. There is no margin dilution from raw materials due to all these factors.

For next year you mean and beyond?

Yes.

Yes. I would say so. I mean we're still in negotiation with our suppliers, right? I mean that has not yet completely ended, but that's what we are expecting. And also, we assume that things will get better midyear. That's kind of our assumption.

I would have two questions. And the first, thank you for the detailed slides and especially also on the targets, which give them additional information how you want to reach them. Now the first question is on the service business, which is important to reach the EBIT margin improvement. You mentioned that addressing your selling service packages through the installed base is very important. Now I wonder how you want to achieve this given that it's an older installed base, which is probably not very well accessible through remote services. And therefore, I wonder which package is in forefront there.

Who would be better positioned than Eamon to answer that.

One of the -- I mentioned during the presentation that we put a high degree of investment into our infrastructures. One of those was into our reporting systems. So we have now great visibility as to our installed base, our customer base and, of course, the type of products and the age of those products. When we overlaid that with our ByCare program, we can clearly see where low-hanging fruit is, very, very visible with a couple of clicks. So we can clearly see that there is a huge potential still sitting there, especially in those machines that are 0 to 5 years, where there is honestly thousands sitting there that don't have any care programs whatsoever. So there is no doubt 2022, we will be putting concerted effort targeting that opportunity 0 to 5 years, especially in the base of cutting. Does that answer your question?

Yes. Actually, it does. Then the second question is indeed again on capital allocation, given the -- you have the CHF 420 million in cash and equivalents, but also then you have securities and other CHF 50 million or so million. And therefore, if -- even if you're a Swiss company, could you give us a little bit of guidance where your thinking is going in terms of dividend policy? Is this -- would this be front loaded maybe payment in the beginning that you have a larger one-off dividend? Or is this more a continuous [ pace ] that we can expect?

We've gotten that question many times already, and the answer is actually always the same. Beat?

Yes, the Board will state its position with the H1 -- sorry, with the 2021 reporting, right? We've been consistent with regards to that.

Okay. I think we have time for maybe 1 or 2 other questions.

Anything in the chat?

No. So far, not. Now there is one. There is one from Tobias Fahrenholz from Stifel. M&A strategy. What is actually the reason that in contrast to the past, you did not distribute special dividends after your recent disposal announcement? Shouldn't it be a hint that you're currently concretely targeting slightly bigger M&A activities in the weeks and months to come?

We actually have the answer to this question. Beat just mentioned it.

Okay. And there is one more. Also from Tobias, coming back to your sales growth assumptions until 2025 and afterwards, when we look at the underlying overall end market as a basis, what kind of assumptions have you considered regarding future market share gains of your fiber laser solutions versus those less productive and as you highlighted, also less green CO2 lasers? What is roughly the penetration rate of today's installed global base?

CO2 versus fiber?

Yes.

We are actually not sharing the exact number of the installed base, but we have a long way to go. We are basically -- we are selling purely fiber laser systems since quite a couple of years already, but there is an installed base out there that is largely still CO2.

And there was a second part of the question, right? Wasn't there?

And -- yes, what kind of assumptions we have regarding future market share gains of fiber laser solutions versus CO2 lasers?

Well, I know there are companies out there that are still selling CO2 laser systems. We think that's something that has gone into the past for us. We have stopped doing that about 5 years ago. We think that the advantages of fiber laser systems are so significant that we don't even worry about CO2s anymore.

Okay. There are other questions on the dividend again, which we will skip. So we will move on with your wrap up, Alex.

Okay. So thank you, Patrizia. Well, really, what I would like to come back, and this is going to be really just 1 or 2 more slides is, I started today talking about the 5 things that hopefully you can take video back home today. You have heard the story of Bystronic, of an innovation leader, creating value for customers in attractive markets, and you have seen several examples of that. We see potential for sustainable growth, industry-leading profitability in an asset-light business model. Also, you see the balance sheet offers opportunities and firepower. And probably the most important thing on that one, you have also experienced some of my very talented team, and that is what we were hoping that you would experience today, and I'm very happy that we get to that point because I can see some of you are ready to get some lunch. Patrizia, will you tell us a little bit where we're going from here, please?

Yes. Thank you, Alex. So before we move on to the lunch break, let me familiarize you with the program of the afternoon. So we will have lunch in a demo center. So if you go outside here again where you had coffee, and then on the left-hand side is the entrance to the demo center, you can't miss it. So please help yourselves there with drinks and lunch. There will also be teams around for the machines. So please take a look at the machines. And if you have any technical questions, they will also be very happy to help you with these. And at 1:00 p.m., we will start with the tours in a factory. So you all have a number on your nametag and the number is from 1 to 4. So this is your group for the afternoon, and please stick to that group because we have arranged transport accordingly. And group 1 and 2, they will first start in the demo center. So at 1:00 p.m., please meet at the entrance of the demo center where you enter for lunch now. You will see 2 signs with 1 and 2 and also the headsets. That's where you will meet your tour leaders. Group 3 and 4, they will first go to the factory -- to the smart factory in Oberbipp. So please at 1 p.m., meet outside on the parking space, there will be a large car available. You can directly board it. We will take you to Oberbipp,and then you'll come back. And all the tours and all the groups will finish around 3:30. So that's it for the presentation. Enjoy your lunch then and see you in the afternoon.