Fox Factory Holding Corp. (FOXF) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to 2021 Fox Factory Investor Day. It's a big day for us, and we are really glad you decided to join us. I'll start off with our safe harbor statements. The discussions here will include forward-looking statements, and the results could, of course, materially differ, so you can refer to this. This will be available on our website and as a part of the presentation that we have put up on the Investor Relations section. The agenda. The goal here today is to tell you how we are coming together to ignite our next phase of long-term growth. And to do that, we have our lineup. We'll have Mr. Mike Dennison start off with his foundation view, vision, and then we'll have Mr. Scott Humphrey to talk about the financial plan, the targets. After that, we'll have Mr. Tom Fletcher, who will talk about the PVG business, followed by Mr. Chris Tutton, who will talk about the SSG business. After those, we will have Mr. Rich Winters, who is the President of the PVG operations. He will talk about the facility we are here today. And then, he will actually take you on a tour, show you the different parts of our manufacturing facility. After that, we will have Ms. Jackie Martin, come over here, talk to us about purpose, inclusion and all the things, ESG initiatives that we are doing. And then, of course, closing remarks from Mike. And after that, we will actually give you a chance to touch and feel some products. And hopefully, with the weather permitting, take you out for some good experience. And before I turn on the stage to Mr. Mike, one of my favorite parts, our short video presentation. [Presentation]

With that, please welcome Mr. Mike Dennison.

Thank you. Good morning. So I've seen so many of you guys over the last 18 months on Zoom that it's great to have you here with us today. It was touch and go, and I thought for a while there in the last month or so that maybe with Delta, we'd get a few folks to drop out. But actually, almost 0 folks decided not to make the trip to Georgia. So I really want to thank you for taking the time and coming to see this facility and to meet the team. It's pretty amazing where we stand here today versus what stood here or what didn't stand here over a year ago. What you see today will be pretty impressive. But just as impressive is the management team that I think you're going to get a chance to spend some time with. People that have helped get this company to where it's at through good times and bad, COVID, non-COVID, new product launches, new facilities, expansion, et cetera. So I really look forward to you meeting the team and spending some time with the team today. In addition, I'd like to introduce our Chairman of the Board, Dudley, I sorry surprise, but Dudley is -- I didn't tell me I was going to do that. But Dudley is our Chairman and flew in from Panama. He's gotten more COVID testing in the last probably a month or so than most of us. So it's like a connoisseur of COVID testing. But I'm glad you came and made the trip and thanks for doing that. I think you go back on Wednesday. In terms of what we're going to talk about today, clearly, outside is in. People are returning to the outdoors by the millions. As people come out of COVID, even before COVID, the notion of getting back outdoors, being outside, doing things that -- there were things that I would have done as a child or back in front and center. And COVID just pushed it forward. Turbocharged it. And we don't see this as a cyclical change, but a long-term growth strategy in what's happening. And I'll talk about our history and where we've been, but today is about Fox 2.0. Where are we going? How are we going to get there? What's it look like? It all starts with the racing. You probably don't get on that many earnings calls where the CEO spends minutes talking about races, we've entered races, we won races that we own the podium. But racing is important to us. The thread between racing and innovation and product and winning is hard to see, but it's a very important thread. That thread also goes from athletes to enthusiast. The aspiration and inspiration that makes a weekend warrior like me want to get out and ride or drive my truck or drive my jeep, snow a bill, so on and so forth. So racing is where it all starts, and it's so important. The good news is we have a couple of racers today. Now you might have met them this morning over coffee, but you'll definitely meet them this afternoon, really great people. For all their records and awards and championships, they're humble, and they're like us. They are our DNA. Greg is a little younger than me -- okay, a lot younger than me. But he won his first UCI World downhill in 2003. And he just won it again 3 weeks ago, almost 20 years later. I'm going to show you Greg in that race right now. [Presentation]

So the good news for you guys today, this is really something special. We knew you all wanted to get out and ride some mountain bikes this afternoon. So with Greg here, what we thought we would do is replicate that downhill course over the track. And you are all going to get a chance to try to see if you can beat his time on the downhill track. Just kidding, we won't make you do that. We are going to get you out of mountain bikes, but that is pretty incredible what Greg did. Again, 20-plus years in the sport, still riding that fast. Justin Lofton is also here. Justin literally flew from the Baja 400 that ended Sunday to get here for yesterday to be here with us. So I'm really thankful he did that. I'll let Tom talk about our wins, which were extreme in the Baja 400 and Justin's won so many events over the years and done so well in the sport. He races the Fox truck. Incredible guy. He didn't win. I'll just -- I'll -- the surprise is out of the room. He didn't win the Baja 400. It was a weird thing that happened. He was racing at night. He was going fast, really fast. Another object was going slow in the dark across the road, truck meets objects and he had a problem with the truck. So I'll let him tell you the story. I wouldn't tell you what he hit, but it did impact his race. So luckily, he's all okay. I'd say the other thing is probably not okay. But he's all okay, and he's here with us to spend some time this afternoon. This is Bob Fox in the mid-70s. Bob Fox still with us, still comes to the office sometimes, kind of our legacy, kind of our hero. We think the world of Bob. In fact, I was going to just do something really quick just to see -- I don't know if it'll work, let me just try this. I don't know. No, probably not. Bob is a legend. Bob is a legend in the sport. But more importantly, he created the brand that is so powerful. Everything that we talk about, everything that we do starts right here with the brand. It's the crown jewels of our company. It's the crown jewels of the industry. And a lot of times, I get questions, why aren't you on this product or why aren't you on that product? Because it may not reflect what's on this -- what's in this slide. When we do product road map discussions, we talk about what's the fit of that product relative to our brand and where we're going as a company. And we say no as often as we say yes, sometimes more often for lots of reasons, but it all starts with performance. And, of course, performance cost money. And if those 2 things aren't aligned between us and a product request, we won't go forward. In fact, what you'll hear me say today, what you'll hear me say in meetings, these guys here at every day in product discussions, we are not a supplier. So people will do their models, they'll analyze, okay, here's what suppliers look like for Ford, GM, whoever. And then say, okay, you're a supplier. You're a Tier 1 supplier. And in some ways, we are, but we're a product innovation company. And the difference, if you want to know the difference between product innovation company and supplier, our brand matters. We don't make a shock that doesn't have our brand on it. And they don't usually build a truck where they don't talk about our brand on that truck. The importance of our brand and that performance and that product to their vehicle makes the 2 products better. And it's the consolidation, the aggregation of those 2 things that makes this so important. You can tell the difference when in most cases on a powered vehicle, we're sole sourced. On a bike, it'd be really hard to take us off and put somebody else on. The geometry, the tuning, everything that we've done to make that product so good, at its completed state like a bike, has to do with the product technology, the tuning, the testing and the creation of what gets combined to reflect that product. We challenge our boundaries through innovation. Better investment in innovation requires less investment in sales and promotion. For most of our history, we have not had to spend a lot of time talking about how to go sell. We've had to talk about how to go build more product, more efficiently. And our mission remains consistent. It's how to challenge the future? How to make sure that we stay aligned to that brand, the DNA first, that racing heritage, our brand, our mission, our vision, all comes together to really create the Fox story. And that FOX story started 47 years ago. It was like an overnight success that took 47 years. A lot of people don't even recognize that we have been around for so long. But when you think about the things that we've done. I mean in 1992, we entered the mountain bike business with a rear shock. It took us 10 years to do the front fork. But in the rear shock, it was 1992. It was not an overnight success. And yet, you can see where we've taken the mountain biking business within FOX. In 2009, we had the big financial disaster, not good times, except or decided, "hey, we think we have this cool new idea for a high-performance off-road truck with FOX shocks on it, and we think it might be something." they told us, we think we're going to build a couple of thousand. Let's see how it goes. Fast forward that has been a dominant player in a market they created with us that just continues to expand and expand and expand. In fact, Tom will talk to you about even where it expands with as recently as this weekend in Toyota. Now we went IPO in 2013, you guys all know that, kind of shifted into second gear and started driving more and more innovation across new products. And as we get closer to 2018, you start to see a trend. Things start to look connected. Things start to get intelligent. And as you go forward to time not on the screen, and you think about where do we go from here, things will be smart and connected. The world has fundamentally shifted. And if we can make that bike or that truck or that jeep, operate intelligently, understanding terrain, understanding environment, understanding weather that vehicle will be that much better. So smart and connected technologies continue to develop and enhance our products. Now earlier this year, just recently, we told you guys after 47 years. Now we're going to get to $1 billion this year. And we're doing pretty well against that. Scott will tell you, we're doing pretty well against that challenge. And we're really proud of that. In fact, on the scoreboard, that looks like a pretty good scoreboard for the last 7 years. 18.4%, not every year was 18.4%. But on a CAGR, 18.4% is a pretty consistent, pretty compelling result. Across that same time, we've added locations, we've added people, we added -- I just checked the math. We added over 900 people right here in Georgia, in Gainesville. We've done 7 significant acquisitions. We've actually done more than that, but 7 significant acquisitions that we think are compelling. But what's really interesting is when you walk out of this room and not talk to this team, but talk to their teams and their teams, the scoreboard they look at isn't the scoreboard. They don't talk about revenue. They don't talk about EBITDA. They don't talk about margin. Sometimes they don't even talk about the new Ford product or GM product. They talk about innovation, technology, meeting commitments. You will find when you really talk to the heart of this team, what inspires them and makes them motivated to come in here today, what makes them inspired to work in a test lab all week and then go race in a weekend is the good stuff. That is the good stuff, not chasing charts. I don't put up charts. Scott doesn't put up charts with our teams day in and day out, townhall saying, here's where we're at on revenue, here's where I have to go on margin. We do not talk about it. That's the outcome of doing what we do, not the input to do what we do, but great track record. So it took us 4 decades to get to $1 billion. Now what? How about 4 years of $2 billion. That's where we're going right there, 2025, $2 billion. And the interesting thing is we set this plan last year. This whole team was in Miami with me in mid-February of 2020. Remember those days, and we built this plan for a 5-year vision to add $1 billion, '20 to '25. And then something called COVID hit and we had to shut down factories, we pulled guidance. We stopped talking about numbers. Didn't know what the world was going to do. Factories could be shut down all year. We did not know. So we put a pause on this. And then towards the end of last year, beginning of this year, we're like, you know what, we're going to be okay. Our plan, our playbook remains intact. What we set out to go do is still what we need to go do. So now with 4 years left in this time line, we're going to go grow this $1 billion, organically. I'm going to let Scott talk some more about numbers and probably make some bigger commitments than I will. But this, we think, is very important to our future. This tied to our brand, staying true to who we are, growing a business that has done so well in the markets we serve, is a good story. How do we do that? Fox 2.0. We're in our second -- the second act. We're not in the third act or the fourth act or any other act. We're in the second act. We are just getting going and where we want to take this company. But there are some key fundamentals that I think are incredibly important no matter where we are in our journey, capitalizing on premium product positions. We will not change. We may add additional brands that have a different influence into a market that's important. We did that with Marzocchi. We did that with Zone lift kits. So the importance is being in a premium product category, defending at all costs, the power of our core brands, applying strong connections to our consumers. And when I say consumers, I'm talking about users. Larry, my predecessor would stand here and say, Ford is important, the buyer of that truck is more important. And that stays 100% true today. The user of our products, the people that use them on the weekends, the people that race them, that's our connection. I'll talk about that. I've always believed in a diversified well-balanced portfolio. Staying true to who we are and yet diversifying across the portfolio, diversifying across channels, OEM and aftermarket. And I'm going to talk a little bit about that, why that's important. Innovate, innovate, innovate. What else did I say? We win when we build and design the best product on the planet and full stop. And then finding new opportunities, constantly looking for ways like commercial, like military, where we can expand our footprint into new markets that will grow with us. In service to our consumers and communities ties to what Jack is going to talk about at the end of today's session around ESG and giving. This is an important element of what we do. It's an element that we've spent less time historically talking about than we should have. And we want to give you guys a road map to where we're going in that space. But servicing our communities, servicing the playground where we play and maintaining that is incredibly important, not for just our brand but for the planet and for our people. Product leader in every category we serve. Now this is interesting because it's a bit of a dichotomy of what does that mean? It may not mean that we are the biggest selling highest volume in any one market. Now it may mean we are. Chris is going to get up and tell you about FOX and Marzocchi and they're there. They're killing it. But it also might mean, still in Chris' world, that we can play a very important part in cranks or wheels or handle bars or seatposts where we're #1 or #2 as ranked by quality and performance, but we're not trying to compete with the Shimano and build millions and millions and millions of handle bars. So for us, it's about being at the top of the game in product and then figuring out how and where it fits. And in the OEM world, in automotive, you guys have heard me talk about the fact that we've declined to be on certain vehicles. Not an easy conversation, big companies that we tend to partner with don't like that conversation from a little guy like us to tell them no. However, in fact, it is one of the most important things that we do. Because if we don't do that, we can ultimately dilute the power of the brand and commoditize the product. You would think that amplifying our connection to our consumer isn't a problem. When our consumers put tattoos in the body, it feels like a pretty strong connection to me. But that said, there's so much work that we need to do. In some parts of our business, our experience with our consumer is really good. When I hear from people who said, "I finally got my FOX shocks for my van like, great. When's your order? Last year. Oh, okay, you had to wait a while, like, it's okay, I got them." That is a strong consumer, but we have to get better at that 360 experience with our customers. Service is really good in bike. Chris' team, he'll talk about it, has done a phenomenal job. In powered vehicles, we need to get better. There is a lot of room for improvement on this slide as we go forward. And it makes our brand even more powerful, if we can support service and engage that consumer after sale in a much more direct and definitive way. So this is an important place for us to go. Again, strong, strong brand affiliation, no doubt about it. We all get it. We can do better. I always talk about vertical integration. I'm a vertical integration guy. I love it. This is my stack effect. The power of having brands that you can stack together to create those trucks that you guys walk by when you walk to the door is incredibly powerful because not only do I get to put a lift kit on it. Then I got to put a shock on it. And then I get to do a bunch of other cool things of that truck to make it a hero truck. And the sum of those parts is greater than the pieces. Our upfitting business is doing so well and so much better than we ever intended it to do. In fact, we bought SCA 2 weeks before COVID hit. And everybody stopped and said, oh, Mike's an idiot. Yes, nice knowing that guy. We are so glad we did. It helped us. It enabled us. They found ways to create opportunity. They got to the end of last year. And our OEM said, "we don't have any chassis for you guys." Sorry, go figure it out, and we figured it out. They are doing so well compared to what we thought they would do this year and yet the mix of what they thought they would build. Meaning at the beginning of the year, they say, I'm going to get this many GMs, this many RAMs, this many Fords, this many Nissans, that's what they had at the end of last year. They pushed it across, and we looked at it. And then the next week, they said, "Yes, no, that's not going to happen." And we had to reboot the entire thing and build from there. And then yet, they haven't missed a commit in this company. In fact, I think -- Scott, correct me if I'm wrong, later, but I think they've actually beat every commit they've made to this company since becoming part of FOX. And now Tuscany and SCA are combined. So now we're using the leverage of both of those divisions, those management teams to do an even better job. But this is so powerful when you can do this. Because you can literally create trucks that you can't buy anywhere else. The same is similar in mountain biking. Now it's a little bit early days. we have more work to do here. But if you look at -- that's my mountain bike over there against that wall. And if you look at our mountain bike, what you'll notice is it's got Race Face/Easton components all over it. It's got Race Face cranks. It's got Race Face pedals, it's got a Race Face bar. It's got our seat post. It's got FOX suspension. That is the combination or the bundle of all of our products into an OEM bike. It makes that bike a lot better than I can write it. Let me tell you. Chris could probably ride that bike. But I try not to fall on that bike. It's about all I can do. Anyway, so the same thing can happen in biking. And we need to do more and more in the combination, the go-to-market of all of our components, all tied together. And you know where that gets really interesting when all those components start talking together. As we think about interconnected technologies, wireless technologies on bike and you can start to make all those things connect, it gets really exciting. One of the questions that people ask me all the time is in powered vehicle division upfitting, how do you actually market? Well, marketing got interesting in COVID, right? Nobody's going to dealerships. Dealerships were shut down. So we went after our marketing group, juiced it up completely. And you can see website connections and lead generation in a pre-COVID time to COVID to post-COVID. You can see the digital change of how consumers buy our vehicles just through traffic that started before COVID and went through it and where they're taking that connection to that end consumer. Why is that so important? Because when we can actually connect an end consumer to one of our trucks, I can connect a consumer to a dealer. And today's world, unlike before, you might go and buy a truck from 1 of 4 or 5 shops, 25 miles from your house. You're buying your vehicles close to home. My dad still does. In today's world, you can buy that truck from Florida, if you live in Arizona or California, if you live in Texas. It doesn't really matter. So if we can connect an end consumer to a truck on a lot that is what they're looking for, when they reach out and they search our vehicles, we can create a sale. But even better, we go back to the 4 dealerships in the area that, that person lives, and we go to those dealers who aren't our dealers, and we say, "you just missed $100,000 truck sale because you're not carrying our trucks." That digital connection to the end consumer to the brand power of a Black Window or a Shelby or something else is really important. Now I think that doesn't change. That's not a COVID bump. People have fundamentally altered the way they go buy. They've gotten comfortable buying things in a new way. And we're going to continue to double down on that and make sure that we reach our end consumer and then connect it to a dealer. Now that's been tough -- I'll just tell you, that's been tough in the last year on adding new dealers. Why? Because chassis. With limited chassis, it's hard to go out to a new dealer and say, "we want you to sell trucks. And we'll get you that truck in 18 months." That's a problem. So our dealer growth really will kick in as this chassis issue starts to resolve itself and we can actually start to fulfill chassis to the dealers that want them. Right now, we sell -- this is an outdated number, but I'll give it to you, 4.7 trucks a dealer. Clearly, when you see the trucks are staying on lots for a very short period of time, that number should be 7 trucks a dealer -- 7-plus trucks a dealer. However, 7 truck -- plus trucks a dealer means that need a lot more chassis. And I think for the next short period of time, we're still going to be chasing chassis. We're good for this year. The team has done a phenomenal job. I think we have work to do for 2022, depending on how long it lasts, but I'm incredibly confident in what this team can go do and their use of digital marketing. I like this slide a lot because this gets back to my diversification slide. What does this mean to me? When I think about where we started in aftermarket and OEM, at less than 20% aftermarket. That was a bit of a challenged model. This is a natural hedge. And why is it a natural hedge? Because we have challenges on the brand-new truck like we do now, where you can't go to a dealer and buy a brand-new truck and get it built just the way you want it. There are few and far between. So what do you do? You buy a 2-year-old truck, and then you go buy a lift kit, and then you go buy FOX shocks, and then you have your truck lift with new wheels and tires and pretty soon, our aftermarket gets better. So the balance in those 2 categories is important. And I've said that for a long time. That needs to stay important. That needs to stay part of our strategy, keeping those balanced also drives product to an OEM because aftermarket uses it, they love it, they want it. The OEM looks at it and says, "You know what, I just want that on my truck. Why don't you just sell it to me?" We'll build it that way. Okay. Let's talk about that. I should just say -- this is also a very interesting slide or pie chart from the standpoint that back in IPO days, SSG was really the more significant. We were just entering a lot of these powered vehicle higher-volume spaces. But to see the balance now in 2021 with the growth in SSG, I just love. I'd just love to see SSG surprise a lot of people that it can be as significant a part of our business as it is today and as it is going forward. I love that. That is good for us. When you walked in the door today, you saw a lot of patents on the wall, not even close to all of our patents. We believe patent filing and innovation are fundamental to how we spend our time. We have IP lawyers or engineers who help us support our lawyers to make sure that we do this work correctly. We think this is what protects us, not just for this year or next year but 5 and 7 and 8 years down the road. IP is important. If you have the internal bypass or live valve. You've got technology that is not easily taken by others and copied. And as you know, everybody can go out there and tear down a shock and kind of see why ours are so different, why ours is so special. And yet the IP allows us to protect that technology and not let them just copy us. So we believe IP is important to our scaling. And that alone gives us the foundation to invest here and drive growth. I said before, M&A is not a function of our 2025 objective as part of that revenue. But it is a function of our objective. So I want to be clear, we will absolutely be interested and acquisitive in potential companies going forward. We've been very successful at the acquisitions that we've done. When you look at this track record of acquisitions, first point, all the Sport Truck's management who actually want to retire. All the Sport Truck, that management team became part of FOX and are part of our management team now. We don't just acquire and fire and take over revenue. We fundamentally believe the aggregation of these teams and this team make us a better team. And so that's a very important part of how these things get integrated. And I think that the team just did a wonderful job. I think as we look forward, we really have to look forward relative to what is in our space. People ask me all the time, what would you go buy? Where would you go buy it? If you look at those bullets, it's new technologies, adjacent markets that makes sense with us. Outside Van, I'll tell you, you guys are going to look back in 2 years ago, wow, don't know how they got there, how that acquisition happened, but I get it. Because when you go out there and think about what we're doing with the shocks on that van and how high performance that commercial vehicle is now, it is a game changer. So that kind of adjacency is really, really good. The person that buys that van: one, premium; two, performance and has a desire to be with a high-end brand. So they'll spend $250,000, give or take on that van out there. Actually, what they do is they'll spend $100,000 getting on the list to get that van out there and then they wait a year for that van. So they're committed. There committed lead times are about a year. But we're going to continue to look for acquisitions that fit that model, that look like that and that reflects who we are, what we are, where we're going. And then ultimately, as I said earlier, the elements of ESG and how we have to grow the community, how we have to service our communities. If you grow the lifestyle, you grow the category, there's a lot we have to go do here. There's a lot to unpack. I'm not going to try and do it on this slide. But Jack is going to take you though it a little bit, and we're going to spend some time on it. We have to preserve the outdoor playgrounds. We -- there's only so much public land. We have a role. We've got to own that role. We can't shy away from it. So we've got to own that role of protecting it, taking care of it, supporting it, whether that's a mountain bike trail or desert racing. So ESG will play a role in our future, an important one. Dirt is in our blood. That's who we are. You will always get what you expect when you come to FOX. You'll get us talking about the things that get us excited, get us inspired and inspired to be the best and help our customers. So with that, I'll let Scott come up and talk about some numbers.

Good morning, everyone. It's great to see everybody in person for the first time. Like Mike, I've spent a lot of time on Zoom with all of you. So it's great to get the opportunity to meet in person. We're just switching over presentations here, you just bear with me for a few seconds. Here we go. So I'm going to walk you through some financials, some historical and talk a little bit about where we're headed over the next few years. So as you look at this slide, this shows revenue, EPS, EBITDA since IPO. First, full year post-IPO was 2014, revenue was just over $300 million. In case any of you missed it in Q2 of this year, we also did just over $300 million in the quarter. What really stands out to me here is really the inflection point that started in 2018 and growth really started to take off. And as you look at the first half of 2021, in all 3 metrics, revenue, EPS and EBITDA, we're looking just about the same as the full year of 2018 in just the first 6 months of 2021. So it's been a really exciting year, a really fun ride. Looking at the businesses, and their growth profile since IPO, you guys are used to seeing the double-digit growth in PVG, you've come to expect it, as I have learned. And so that growth story has been fantastic. I think what I would focus everyone on is in the 2020 and the first half of 2021, how we have really started to grow in SSG, and it's been a fantastic story, and Chris is going to talk to you more about that in a few minutes. Mike talked about one of his favorite slides. This is mine. Ex-treasury guy, I love my cash from operations. And when you look at the 20% CAGR, that's great. But I also look at the first half of 2021, and we're almost matched up with our best year ever in 2020 in 6 months. So the business has thrown off a lot of cash. And so we're going to talk in a minute about all the opportunities that we have to put that to work. Now I'll talk about one of your favorite slides. I'm sure. Let's talk about OpEx. If you look at the chart to your right, we've ticked up a little over 2020 and 2021 as a percent of sales, partially COVID-driven, but you've also heard me talk over the last 1.5 years now about how we needed to set this business up to scale and how the infrastructure was not there, and we were going to spend and invest in order to promote that growth. And now that you see what Mike has shown you as far as the plan to go to $2 billion by 2025, maybe that all starts to come together that we didn't have the infrastructure in place to double the business in 4 years. And so we're putting that in place. I'm going to break it down really in terms of how we report and the 3 different areas of OpEx. So as Mike mentioned, innovation, innovation, innovation. R&D, we're expecting to continue at about the same percent of sales that we currently run at. We have to continue to invest, to have the best technology and to be the best in each of our segments. Sales and marketing, I think, typically, when you're growing as fast as we have been and expecting to grow, you're going to get some leverage off of that. We've also learned some things during COVID with regard to changing attitudes toward trade shows and so some opportunity there. Have on this slide impact from acquisitions because this can kind of go all over the map, depending on what we end up picking up over the next 4 years in inorganic growth. We just bought SCA in March of 2020, and they do -- all of their sales are commission based. And so that ticked up our OpEx and specifically our sales expense as a percent of sales because SCA has done so well, and this is where those costs roll into. And so there is a little bit of wonkiness with that metric when you think about, well, how does the mix change or how is it driven with acquisitions? And then finally, G&A, which is where we've really been investing over the last 1.5 years. I would expect this to remain consistent with about the level where we are at right now through the end of next year. And then you should start to see the leverage come from that as we make our way to $2 billion. Liquidity. I mentioned cash from operations. End of Q2, we had a little over $500 million in dry powder between our revolver, which is currently undrawn. Cash on hand, running current net debt-to-EBITDA below 1. So the ability to go out and do M&A without having to really even hit the debt or the equity markets for right now up to a certain point. And if you think about our acquisitions prior to SCA, they tended to be $50 million or less. But we have shown the appetite for doing some larger things with SCA. And as Mike mentioned, that's been an absolute home run for us. So with those encouraging results, we would take that up to 3x EBITDA or even a little higher for the right acquisition and then expect that tremendous cash flow that we're generating to knock that down below 3 on a longer-term basis. So let's talk about 2025. If you do some math versus where our guidance sits for this year, you're looking at about a 17.5% CAGR on revenue. We've talked about gross margins getting more robust as this factory that you're sitting in today gets up to speed and we start to drive some efficiencies in manufacturing. I'm excited for everybody to see this place and what we've been talking about so that you can understand what we're doing here and how having operations from one end of the building to the other is going to be a huge efficiency gain for us. That will drive increased EBITDA. You've already seen EBITDA in the first half up over 21%. I have cautioned you that there is some mix element of that in the first half as we were a little lower on the percent of business from OE in the first half than a normal run rate for us, but still looking at those higher gross margins driving higher EBITDA. And so what do we need to do? And when I talk about infrastructure and OpEx, what does that mean? Really, we talk about as a management team, putting together world-class processes. And how are we going to do that? Well, we're centralizing support functions here in Georgia. We're standardizing things like ERP systems and trying to get everyone on the same system, standardizing SOX processes. And then how do we get better at M&A integration. We would love to make that a smoother process. And so that's a focus for us, all of which will make us scalable as we go forward and continue to grow at such a rapid pace. So where does that take us? Mike already told you $2 billion in revenue. And so I'm sure you've been doing the math in your head, then you get to EBITDA of $500 million in 2025. So he left that tidbit for me to share. And that's it for me. I'm going to turn the mic over to Tom Fletcher, who is our President of PVG business and strategy for the company.

Okay. So they got all the easy slides with all the graphs that go up to the right and they turn to me and say, okay, strategy business guy, what are you going to do? My job is powered vehicles. And I've been thinking about how I should share with you guys the importance of suspension. And I thought I'd best start with the story. Many years ago when I first started riding dirt bikes. It was one of those typical father-son kind of things where you go out with about 20 guys, you're out in the woods. We're in the Serra Nevada mountains in Northern California. It was one those things I'd never ride them before, and I borrowed a buddy's bike. And there was an inordinate amount of conversation amongst the older riders about suspension. And I literally remember thinking, what's a big deal. It's just suspension. They talked about rebound. They talked about compression. They talked about adjustment. They talked about the way it felt. And honestly, what was running through my mind is literally what is all the discussion about. At that time, FOX just put out their first set of mountain bar -- excuse me, dirt bike suspension. So there's a couple of guys who actually had Bob FOX products on their rigs. And they talked about what it did for them and the impact it made on the way they ride. And what I came to learn is, as I got better, is that what suspension does for you is there really does 3 things: One, it connects you as the rider to the vehicle and to the terrain. And with that connection to the terrain, you develop an element of control. And when you are riding, especially when you are riding fast, when you have control, it gives you confidence. That confidence combined with focus is really what allows you to deliver performance. If any of you watch that show that's on Netflix, that Formula One show or they follow the drivers, in the very first episode, there's a driver who talks about the connection he starts to feel and the confidence he has when it's going fast. And he says it feels like you have superpowers. What we're really doing with suspension is we are trying to give our rider superpowers because when you're locked in and you're feeling the rhythm, that's exactly what it's akin to. I would suggest as we tour the vehicles this afternoon that you spend some time talking to Justin Lofton, and he shares with you what it feels like to be in a trophy truck, going 75 to 85 miles an hour across the desert through a wash, encountering things that you don't know what's around the next turn and with that confidence in your vehicle because of the connection to the terrain and what the suspension can give you, the change that creates and your ability to drive at peak performance. So I'd like to thank you on behalf of the 2,000-plus team members on the PVG team of coming to Georgia and seeing what we've started to create together. I want to share with you where we're headed as we look at opportunities in powered vehicles. We all talk about the growth. The growth in powered vehicles for FOX over the last 5 years has been very impressive. The numbers are big. The growth started before COVID showed up, but as Mike alluded to, COVID has, in fact, given us a bump. As we talked to some of our partners, they've alluded to the fact that new ridership on their products has doubled. In the case of Polaris, they think it has double gone from 20% to as much as 40% new riders. So there's a bigger community that is being drawn to the activities in the outdoors and the products that FOX supports. The mobility sector overall has grown and expanded as our portfolio has expanded. And as Mike talked about, it's very important for us as we position that portfolio of products that we cannot only serve the OEs, but we could serve the aftermarket, that we can serve the DIY, that we can serve the DIFM. For us, turnkey vehicles like you get from our Powered Vehicles division is really DIFM on steroids. We will do it for you to the point where you just show up, get the keys, get in and drive away. Mike alluded to racing. And the reason the racing is really important to us, is just the buzzword that we use. It really sets the foundation for what we drive is a culture. Mike highlighted that with the teams, we talk a lot about winning races, about the importance of what we learn from the race teams. FOX was born in racing. When we started, the reason we started, how we did is because we'd have podiums on Sunday, we'd sell in the aftermarket on Monday. And eventually, the OEs came and wanted our products on their vehicles because the FOX name helped them sell product. As Mike talked about, our decisions of what products we go on are primarily a function of if our product can help you sell your product, that's a good partnership for us. If we're a component on a system where we get buried, that's probably not a good product for us. So our heritage really stems back from the strength that we have in the aftermarket that attracted the attention of the OEs that allowed us to grow the business the way we have. Our intention is to really give you a product that takes you places you've never been before to do things that you've never done before. What that competition, what that race mentality is really created organizationally in the culture is a growth mindset, where we have passionate enthusiasts who are creating product for the best drivers in the world, in the most remote locations against the ferocious competition in the harshest environments. We do that because that is the place where you learn. And as Mike talked about, we've had a tremendous amount of success in those endeavors. The Mint 400 is referred to as the Great American off-road race. You might not be aware of the Finke, which is the Northern Territory of Australia, it is known as the harshest and most remote off-road race in the world. These are the places that we send our product. At its very core, what a shock is, it's an energy dissipation device. That's all it does. It takes mechanical energy and it turns it into heat. When you think about the idea of taking mechanical energy into heat, we are taking it to the desert on the harshest terrain and putting it in the most extreme circumstances. You know why? Because that's where it breaks. And when it breaks, we make it better. The racers push our product as hard as it practically can be pushed to enable us to figure out what do we need to do next to enable them to be even faster and better than they are today. Part of the challenge that you end up within the desert is that you encounter things that are different every single time you go out. As you talk to Justin, Mike alluded to it a little bit about his experience this last weekend in the BAJA 400. He, in fact, encountered something he had never encountered before. I'll let him share with you itself because the way he tells the story is unbelievable. But for us, it is another example of putting our products out there in these kind of competitions, we learned things that we could have never thought of going on test tracks. We didn't necessarily plan it this way, but it worked out pretty good. This past weekend, Baja 400, we had about 25 podiums. That means every single class, the best races in the class, the best races in the world across different vehicle types, they were FOX athletes. They were choosing our product. You need to understand that the best trophy truck drivers in the world get to choose what equipment goes on the rig. Obviously, sponsorship plays in, but nobody wants to be sponsored by a product that does not enable them for absolutely peak performance. And when you look down the list of winners from the Baja 400, they're all FOX athletes. We're extremely proud of this. The opportunity is really about what's going on outside. There's a series of options that we make available to our end users. There's desert, there's dunes, there's snow. All those are really about enabling them to go places they've never been to do things they've never tried. When we talk about the growth that we are looking to enable to 2025, it really comes out of a couple of things. But all of it really does trace itself back to racing and the passionate enthusiasts who are inspired as a function of the technologies that enable those wins. As we think about having a premium brand, we really want the end user to say there is no other choice other than FOX, in terms of enabling an outdoor experience like no other. All that is super, super slick buzzwords, how are we really going to do it? How are we going to double again to 2025? We've done it for the last 5 years. We need to do it for the next 5. As Mike alluded to, the growth that we are targeting on that slide is all organic in nature. We are fortunate enough because of our success in the marketplace, we've been approached by many inorganic opportunities, and we evaluate every one of them. We did a count. And over the last 6 months, we've looked at about 175 different opportunities, where if somebody came to us or we went to them and say, there might be an opportunity for a partnership. We've actually done a little bit more due diligence on a handful of those, and Mike shared with you the couple that we've done in the last year. We will continue to do that. If there is a fit and there's an opportunity, we will look at it. The growth you see here includes none of that. Because we think, organically, our markets can get us to the point of the $2 billion Mike alluded to. How are we going to do that? It's really about a balance of segments that we support and the brands in those marketplaces, creating an opportunity and a balance that will allow us to enable that growth. When you think about the facility that Rich has brought up here in Georgia, what that will do for us from a margin expansion perspective to be able to support that growth. In addition, we believe our end user demographic is highly resilient, for 1 of 2 reasons, either they're economically resilient and they just have enough money to buy premium performance product or they are so passionate about what they do, that they won't choose anything else other than the best. So that means the guy who want to Shelby Baja Raptor will probably buy that regardless of what's going on in the economy just because he can. In the same way, the guy who buys the Factory Race shocks for his high end side-by-side. It's because he loves to go to the desert and push that thing as hard as he possibly can, and he won't choose components that allow them to do anything less than that. It is their passion that we've seen that has allowed us to sustain a business model that continues to grow. When we think about the 5 pillars that really are going to enable the growth, they really break down as follows. It's a portfolio that we have in terms of brands in the markets they serve. It's the coverage that we have in those marketplaces, not only in OE and aftermarket, but DIY and DIFM, to be able to do it yourself or have it done for you. It's the TAMs that we support that really are expanding in all different directions. All of that's supported by an incredibly passionate team who has enthusiastically engaged in not only creating differentiating products but really loves to watch those wind totals start to rack up. And then finally, structuring all of that into a plan that overdrives the goals we're looking for. We encourage expansion and exploration in everything that we do. If we hit on every single plan that we have, and hit nothing but home runs from this point forward, we go way higher than that 20%. But the reality is we're going to try some things that don't work. There'll be races that we run where we DNF, we don't finish. We want to try a multiplicity of things because we believe that the marketplace is still evolving. And we want to be in a position to take advantage of it when it does. We talk about the brands. Mike talked about the impact of these brands and why we stack them up the way we did. For us, this is less a house of brands and more about building blocks for performance product. You can take a FOX shock and put it into a BDS lift kit and be able to fit your truck. You don't want to go through all that, we'll just sell you a truck, maybe you just want the shocks. Any combination of which you approach our brands, we have a solution to take you from shocks to systems all the way up to vehicles. The way I think about our coverage of the marketplace is I refer to it internally as a multidimensional coverage map. We have building block of products to go from shocks to systems to performance vehicles. We cover the OE and the aftermarket. And you all know what goes on, and Mike alluded to it, it goes in, in the OE and the aftermarket. If I can't get a new truck right now, I'm going to fit my old one. If the new trucks are available, I might buy a new one. Either way you want to go, we want to be there to be able to support you. Do you want to do it yourself? Do you want it done for you or maybe you just want to buy the vehicle. Any direction you go in the space we want to be there for both off-road and power sports. And as we create products in this coverage map, there's really 3 things we consider. We consider principles, platforms and applications. Principles is actually a very exciting place for us. Principles is the synergy that we get created between PVG and SSG, where we've made the purposeful investment to go in and look at the fundamental principles that drive suspension. What has hysteresis been? What about heat transfer? What about coatings and materials? What are the core principles that we can learn about and an analytical -- from an analytical perspective that can really help us enhance our products? In addition to what I'd call traditional suspension principles, it's also the next-generation principles that we're looking at. How do you do low-power communication. What do you do about edge computing? How do you handle big data and the cloud associated with performance. The combination of the investments we're making on the first principles, both for the traditional technologies and the next-generational technologies will really start to inform our platforms. We will never step away from race. Race is always the place where we will force our products in to see how hard they can be pushed but they can be informed by backbone of technology that is continuing to mature and be invested in, and then finds a very nice synergy between PVG and SSG because the fundamentals of that suspension are very much intertwined. So you talk about platforms. Platforms are really those proof-of-concept products. It's a -- you've learned all this crazy stuff, what does the product look like? It's a proof of concept that we can demonstrate in a way that shows the differentiated performance we're looking for. To give you a sense of how we go from principles. And on the principal side, we have about 12 projects going on right now. On the platform side, we have about 50-plus projects going on right now and understand that any breakthrough in one of those platform projects can result in a SKU profile on the order of 50 to 75 different SKUs. The Raptor win, for example, can become a platform that rolls off across multiple variants that drives a whole lot of volume from one platform project. Third, we think about applications. Application projects that we have going on inside FOX right now are about 275, across different vehicle types, vehicle sets, both on the on-road and off-road, all that is supported by a core engineering team of about 115 people right now. Many of them right here in Georgia. Several of which you'll meet as we move over to the tech center this afternoon. We always talk about product first, but all product gets to market and wins from a support by -- from our aftermarket channel partners and the development relationships we have with the OEs. Beyond that, we are -- we have invested heavily in connecting more aggressively to our end user. Mike talked about that a little bit in his presentation, what those investments look like are investments in education. I would encourage you as we get over to the tech center to take a look at our vehicle use cases. Our vehicle use cases are really about translating the technology that we have created into experience that the end user can understand. When you get an opportunity to drive FOX products side by side by side by side, you see the improvement going from our performance series, all the way up to our Factory Race series. You can tell the difference in the quality of the product and the impact of ride dynamics. Our ability to translate those value propositions to the end user is really what that education is all about. You'll find that online through FOX Academy or the subject matter that we take on in those conversations, sometimes it's less sexy, but a lot more practical, things like why these shocks are important for towing your vehicle and go through the whole discussion of this is the way you need to set up your rig. This is what you need to think about in your suspension. This is what it means for your ability to be able to get that side-by-side where you want to go on the great outdoors, to enable that experience, to help the end user understand how to best use our products. Think about education. Beyond education, it's digital engagement. Understand that FOX family of brands, we currently have about 4 million followers through BDS, Outside Vans, [indiscernible] legacy. We commissioned a study earlier this year that came back in and shared with us something that you may not find surprising. But if we're honest with ourselves and with you, we never really looked at very diligently before. The amount of people who own both SSG product and PVG product inside the FOX family was much higher than we expected, about 3x what we expected. We have all been so head down, working so hard on the different products that we are bringing to market. There was a synergy between our communities that we were not taking advantage of. What you'll see in our digital engagement is we're going to reach out much more aggressively to encourage what we call natural cross-pollinization. Part of why Outside Van was so attractive to us is that resonates so hard with our SSG biking community. Mountain bikers want to take that stuff and live off the grid for 2 weeks. And take their mountain bikes to places that you've never seen before and live in a way that I'm not sure, I don't want to live for more than 2 or 3 days, but experience life in a whole different way. To be able to embrace that and bring those communities together and use it as an amplifier to look at this network of networks that we've created and bring them together to be able to drive product growth and our education of how to create product for them is really where that digital enhancement leg steps up and takes hold. And then thirdly is around customer experience. When you use our product, there is a lot to know. There's a lot you can do. We want to simplify it. We want to help you. We have literally millions of shocks out there in use today. What I always challenge my team with is the idea of, okay, the millions of shocks that you have out there today, how many of them are tuned correctly? We don't know. If they're not tuned correctly, they won't give you the performance you're looking for. We know that we're enabling some stuff to get us smarter, but we want to develop that relationship with the end user because if you're going to drop $1,000, $2,000, $5,000 on a set of shocks, I would like to be right there beside you to make sure that they're operating as well as they possibly can. That's really what customer experiences about, and that's really where we're going to be investing over the next couple of years. When we think about TAM, the question becomes, which TAM are we going to talk about. When we look at the platform that we've created, when we talk about the multidimensional product coverage, there's a lot of places that we can go. When we think about growing opportunity for us with respect to TAM, we think about 3 things: One, we think about just natural market growth; two, we think about market making; and then three, we talk -- we think about market share. If we look at all the TAM that are available and specifically, we look at the premium product in those markets, because that's where we're focused, that's where we attack. That's where our brand makes sense. Across the range of opportunity for us, we believe there's a growth in that space, anywhere from 15% to 20%. That doesn't tell the whole story. When you consider the concept of market making, to Mike's point, if you went back to 2010, there was no Raptor. Ford came to us and said, we're thinking about doing something different, and we said how about this technology. At the time of the 2010 Gen 1 Raptor, we supplied Ford with about 8 SKUs. There's a 2.5-inch internal bypass or passive shock. It's sold more, as Mike alluded to, than they had anticipated. You roll that forward to about 2017. The exciting thing about Gen 1 is there was nothing out there in the market at all to compete against the Raptor Gen 1. By the time you get to Gen 2, the market was starting to catch on. We provided Ford for Gen 2 initially a passive shock for year '17 and '18. And then in '19 and '20, went to an active shock, which is LIVE Valve, still at about -- from there it went from 2.5 to 3.0 internal bypass. We now had a shock that was able to give them a range of adaptable load compensation and compression, and we went from about 8 SKUs to about 20-plus SKUs as that market began to grow. When you consider Gen 3 that is going out now with double the LIVE Valve force, still a 3.0 internal bypass, the number of SKUs that we'll be providing forward for that variant vehicle is substantially more than 20. When you think about -- in addition to that, the other competition that has shown up and also leveraged or the technology we initially developed for Ford, but in different applications for their vehicles, slightly different, tune different, integrated in different, we've seen that market expand considerably. That's one example. The exact same thing happened side-by-sides. If you go back to about 2008, UTVs were really the only thing you want to buy, and they were really just kind of bulked up golf carts. And somebody at Polaris came up with the idea, well, what if we took a UTV and made it really bad ass, what would it look like? Is a secret project called Black Widow. There was one product. We had 4 SKUs. It was the first side-by-side. Today, with Polaris we literally do over 100 SKUs, and they're only 1 of 7 customers. It was a market that was created and grown. We anticipate in this space over the next 5 years, there will be another market or 2. There are a couple that we're exploring. We don't know exactly where it's going to be. But when I talk about exploration, those are the feelers that we have out in the marketplace. Those are the relationships we're creating because we want to stay ahead of it, like we're fortunate enough to do with the Raptor and with side-by-sides. We talk about market share. Consider our upfitting business. Currently, we have relationships in our upfitting business with roughly 2,000 dealers. Consider there are about 15,000 dealers just in North America. They were currently sitting on a 6-month backlog for product out of our upfitting division. You can imagine growth that would be enabled, to Mike's point, once the chassis break free, and we were able to establish additional relationships to put more product in that channel. Consider Outside van. Outside Van was a very successful company, only doing 100, maybe a couple of hundred units of custom product a year. Imagine the coupling of Outside van during a couple than several of 2,000 types of vehicles of those outside there that you can take a look at establishing that network of dealers that we have, you start to see the opportunity for growing market share. So we look at market growth, market making and market share, and we think there's opportunity across the portfolio. We talk a lot about the people. For those of you who don't know Bob Fox is a member of the AMA Hall of Fame. The guy, he spent most of his time with guy named John Marking who talked forward into using the technology that is on the Raptor. He will be going into the off-road Hall of Fame next month. He mentored a guy named Bobby Smith, who now runs our race division. You can meet Bobby when you go over to the tech center. Make sure that you tell Bobby, we anticipate at the end of his career, he better be in the off-road Hall of Fame when he is not doing his job. He connects with the guy named Mike Kim, Mike Kim builds shocks, tune shocks, race the Baja 400, is on our race team. And what I could tell you about Mike Kim is I thought I was a pretty good side-by-side driver. And one of our tech demo days Mike Kim took me out on a side-by-side. Suffice to say, I don't know anything about side-by-side driving. He is a phenomenal racer. You think about Matt Everlane, who's one of our engineers up with Coldwater, Michigan, who has designed more lift kits than I have ever seen in my life and knows the industry inside and out. You think about the McSweeney Brothers who run our upfit division, in combination with Mike Graber at Tuscany. Between those 2 families, they have been in the upfitting business for 4 decades. You think about Susan Clemo, who is in our leadership at Outside vans up in Oregon. She helped to establish and grow that organization from what they were to what they are today, with the leadership position in the adventure van space, ready to explode in mass production. All of that connects through Rich Winters who may be our best driver in the entire company, except that we have a race division. The only thing that's holding them back is that we pay all these other guys to race and he can only do it on the weekend. It literally runs all the way through what we do. The reason people get so fired up about working on this stuff is because you can go out on the weekend and tear it up and see how it works. You see that it wins in Baja. We get excited as an organization. The opportunity sitting right there in front of us, the question is how do we capitalize on it. So the question is, where further can we expand? Everything I have shared with you up to this point has been about domestic opportunity. Currently, international is low single digits of our revenue. If you want to know where we're going and how we're going to go there, I would suggest you watch 2 different things. One, where have we positioned ourselves. There was a relatively minor acquisition that happened to FOX earlier this year. It was a company called SOLA Sport. It has become Fox Australia. It is our foothold on that side of the world that we will start to capitalize on when the timing is right. When you look at the capability that Chris and SSG has created in Germany, Fox Germany is another location. When you consider where we can go to leverage the investments we've already made to be able to explore internationally, we already know the first 2 places that we're headed. When you want to know what our race programs were going to be in, ahead of those expansions in those locations, I would tell you to watch [ The Car ], and I would tell you to watch Extreme E. Both of those are very interesting to us. As we watch those, our opportunity in those 2 race circuits start to evolve. The other thing that was fortunate enough, and sometimes you can't make this step up even if you try, 25-plus podiums on Sunday at the Baja 400. And then during Sunday night football, Toyota introduced this. [Presentation]

It's some pretty impactful work that was a result of a lot of effort by the team to be able to have Baja and the release of the TRD Pro in the same weekend, right before Investor Day, I don't know that we're even smart enough to strategize all that. That one just worked itself up, if I'm really honest. So circling back to where we began. What's the big deal, it's just suspension. Well, it's a suspension that can literally drive $2 billion business and beyond. I will be available and at the tech day as we walk through the facility and available for all your questions. Thank you. Ladies and gentlemen, I give you Mr. Chris Tutton of SSG.

Thank you very much. Hi, everybody, I'm Chris Tutton. We're going to go through especially Sports group today. Bob Fox founded this company with a clear vision to make athletes to get to the top of the podium. That message still holds true with our RAD program. It's important to us, and we test and develop products with all of our racers. We saw Greg win earlier. He's a big part of that with us. Having the world's best products helps our athletes. This year alone, our athletes garnered over 172 podiums, 3 world championships and 2 Olympic Medals. We're really proud of our success at the races. It really was Bob Fox's vision, and it really is the ultimate validation of our product. Having product to win races also drives consumer demand. For the past 5 years, FOX has been the #1 suspension brand in respect to consumer intent to purchase. And for the last couple of years, Marzocchi, a company that we purchased back in 2015, has risen to the #3 spot. As we build our community riders, we want to make sure that we're not just delivering a great product, but we're also a great customer -- delivering a great customer experience. And by a large part, our customers are telling us that, across our branded portfolios, we have an average NPS score of 79. Having great products to drive race results, which in turn drives strong consumer demand. This has enabled us to deliver strong growth since our IPO. Over the past 5 years, we delivered a CAGR of 12.8%. And looking at the first half of '21 versus the first half of '20, that growth rate jumps to 73.3%. And in turn, our product capacity has almost doubled. With all this growth comes the need to invest, and we've been working hard to expand our global footprint to meet our customer base. As Tom said in Germany, we've built a brand-new distribution center and service center. In Australia, we've acquired our distributor SOLA to better service that market. And in Taiwan, we've expanded our facilities in Taichung. And we're building on a new factory in [ Chiayi ], which will add 50% capacity of our suspension and it will double our component capacity. So where do we go from here? We continue to grow and add value to our customers and shareholders. Over the next several years, our team is focused on 4 key priorities in order to drive our business. First is market share. Even though FOX has a dominant market share in suspension, there's certain places around components that we believe that we are underfunded. We built a product road map to change that, and we are solely focused on it. We also are looking at emerging markets, eMTB, eSUV and Gravel are all new areas that we believe we're going to be able to play into. Innovation has always been a driving force behind this, and we're looking at doubling down on that. By doing that, we've created an advanced technologies team. We're going to further strengthen our relationship with our consumer and do this across every touch point. When we talk about capturing market share, in underpenetrated categories, we're thinking specifically about key components, which are cranks, wheels, handlebars and seatposts. In some categories such as cranks and handle bars, we're going to be doing that through some innovating new products. For wheels, we're focusing on scaling. And for other categories like seatposts, we're broadening our price points. Strong light materials are the foundation of our success. The bike has got to be tough and light in order to win races, but it also has to be durable enough to take the impacts. Carbon has always been a material choice for our halo products. So we're really excited to announce our new product family at the top of our range. ERA, which is our new line, which does the name suggests, is a new age of premium carbon componentry. It's put simply the best of the best. Our air [indiscernible], for example, brings years of refinement for both our design and our manufacturing. [indiscernible] is actually 300% stronger [indiscernible] processor. When it comes to handlebars, we've set out to create a bar that would provide a clear performance advantage. You got to do 3 things to have a bar to do that. Compliance with the bar stiffness, the amount of vibration that is transmitted and then the frequency in which that rider feels that. We've optimized all 3 of this. We conducted a multiyear exercise with a science-based study in the lab, also with our athletes in the field, which creates a sweet spot across these 3 parameters. Wheels in an area where we have significant demand. So our focus there is about scaling production. Wheel systems can be a bit of a challenge. They're big and they're bulky, they're expensive to ship. So we are looking at the opportunity to help our customers, both OEM and aftermarket get the wheels where they need them, when they need them. By doing that, we're going to expand our in-house capabilities. We are going to -- in the next 5 years, we'll actually increase our in-house capabilities by almost 5x, incorporating building robots and optimizing a regional approach to be able to give the product to where our customers want it. FOX has always operated in the ultra-premium segment of the market. This has differentiated us from our competitors. We've provided an incredible brand. We're looking to expand our addressable market and more accessible price points. We know there's an opportunity to democratize performance, so more riders can enjoy our performance benefits. We're going to do it a little bit differently though. Rather than come out as some of our competitors do, we're going to innovate our way through it. A lot of people would despec products at a lower price point, we're going to get that through pure innovation. We're already seeing that today, and we're seeing a trickle-up effect for both margins and performance savings. We're confident with the innovations on our new carbon airline, along with the broadening of price points, the key categories and scaling of our wheel production will meet our demand to further strengthen our role in market share. Emerging markets are something that we're very excited about. The explosion of electric assist technology has radically altered the cycling landscape, as I think everybody has seen. These big bikes are making the sport more accessible to a wider group of riders. They're also allowing experience riders to go faster and harder than before. This has put a whole new set of performance and safety demands on bikes and their components. The needs for EMTB and ESTB are going to -- is what we're going to talk about now. We're also going to have a little more about Gravel, Gravel is a new segment, where we're seeing traditional road riders, migrate off-road. So we'll start with e-mountain bikes, electric mountain bikes. This is sort of the fastest-growing segment of the cycling industry. E-mountain bike sales through Europe have been strong for years. Now North America is seeing it come on after them. We're seeing -- last year it was about a 62% year-over-year growth. What we're going to focus on here is why FOX is uniquely positioned. If you look at mountain bikes, they're heavier than regular mountain bikes, they go faster than regular mountain bikes. And to a great degree, they're piloted by less experienced riders. This combination of increased weight and speed and less experienced riders places a greater loads on the bikes and puts a new set of performance and safety demands on their components. People are riding farther faster across more terrain, and this creates a whole another set of challenges. FOX, we know a thing or 2 about this. And we have about 45 years of experience engineering products with both suspension with power and without. Some of our competitors would accommodate this by increased loads, by recommending a higher air pressure setting for the fork and shock. We've taken a different approach. We're creating purpose built suspension for e-mountain bike and offering 3 different solutions. E-Tuned is our mountain bike's suspensions and adjust the tune for the unique suspension needs for E-mountain bikes. E-Optimized takes it one step further with a beefed-up chassis to deliver highest and the strongest approved systems in this class. And lastly, E-Valve, which on the robust E-Optimized chassis, in court, patented to the LIVE Valve technology. eSUV is a -- sorry, we're one ahead. eSUV is an emerging and rapidly expanding category of bicycles that made possible by E mountain bikes. Just like the automotive names takes, eSUV, are designed for maximum utility usefulness. The design to be written further over a very trained while hauling gear, just like their SUV counterparts. Also like SUVs that we use as daily drivers on paved roads. I don't really say that in a sparging way. These are perfect commuter vehicle, and we're seeing these address some macro mobility trends. eSUVs generally respect like regular mountain bike suspension. But again, true to our purpose, we've created a fork specifically designed for this market. The AWL fork, which stands for adventure, without limits, takes a legendary FOX performance and durability and build it into a chassis specific designed with the needs of eSUV consumer. This includes features like antilock brake systems, which you wouldn't see on a regular mountain bike chassis. Finally, I want to touch on Gravel bikes. This is another segment that is new and emerging. Here in North America, we've seen a 25% year-over-year growth. Research, we believe this growth is primarily driven by migration of road riders off-road. It's a relatively new, and it's a rapidly evolving category, generally borne in the adoption of mountain bike technology on to road bikes, enhancing the off-road capability while maintaining the speed and agility of a road bike. This fall, we're going to be launching our new [indiscernible]. This is of course a big deal. It's similar -- it feels similar to serve when suspension and mountain bikes starting in the early '90s. We knew this fork would allow our riders to go faster with more control, less fatigue, but we were a little surprised at how it actually worked out. We actually took one of our formal Olympians and tested this fork back to back on a closed course. On a 40-minute lap, he was delivering a 32-second advantage over the same non-suspended bike. To put that in perspective, in the world's premier gravel race, which is a 200-mile slog in Kansas, the difference in the top 4 riders was less than a minute. So that and expand it over a 10-hour period, we have an 8-minute advantage with our suspension. That really is the difference between missing the podium and winning the race. So we think this product is going to be a big game changer for us. As we look to '25, we believe these emerging segments offer a serviceable market of over $1 billion. So we think there's lots of opportunity here for us. We're confident that our product road map within the electrified space and gravel help us allow to extend our leadership position in these fast-growing segments. We spend a lot of time thinking about innovation and how we can deliver the customer needs. And we also spend a lot of time thinking about how innovation can help us win against our competitors. So it's critical for us to look at on a longer time horizon, unencumbered by any limitations, which is where we've established our advanced research and technology team. This team is really looking at 10 to 15 years out what the future is going to look like and where we are going to be inside it. They'll be thinking about new materials, advanced manufacturing, new materials, advanced manufacturing and -- excuse me -- so as I said, the team looking 10 and 15 years out, imagine in the future, what the industry is going to look like and where we're going to be in it. To think about any material advanced manufacturing, how our products and services intersect with our connected rider for this team by setting a clear vision for our future and -- designing into it. In order to design our future though, visionary products and systems, we're increasing our investment in our advanced technology team. In fact, last year, we've actually tripled our spend on this team. Specifically, we're focused on certain areas, including material science, connectivity, power harvesting and advanced manufacturing. We're building towards a cycling experience that will include a higher level of connectivity and support all aspects of the rider experience. We purchased aftersales support. R&D team runs totally independently from our mainstream product team. So we're doing that specifically to make sure that these guys are well integrated, but they understand our future needs and not our day-to-day. This is similar to how our team already works in collaboration with powered vehicle. We spent a lot of time talking about products. So I end by talking about customer experience, when we're creating an exceptional experience, we want to create a successful customer experience, and we're focusing on these areas. Knowing our consumer largely connects with our brand online, we're investing in building out our digital platforms to ensure they're interconnected and supporting our online consumer. We're also focused on leveraging digital technologies to enhance the experience using our products. Lastly, we're focused on supporting riders when the products need servicing ensure that we're leveraging those digital tools through our global network to get them back on their bike as quickly as possible. So we all know the retail landscape has shifted quickly. And the bicycle industry is no exception. COVID certainly helped that. Currently, 40% of our aftermarket sales are sold through ones with online storefronts. By '25, we anticipate that it to grow to 60% through our own sites or our retailers. As well the research also shows that more and more riders want to do their own maintenance and service, and they need access to small products and educational content for service. It's important for us to meet the consumers where they are and provide them with effortless way to interact and transact with our brands. All 4 of our brands have e-com enabled sites, and we're further investing in building these sites out, delivering exceptional customer service. As a small example, one of our suspension products is a QR code. Once our customer scans the code and registers the product, we can support them across the platform and throughout the life of that product, keeping track of records, custom tunes, providing them with locations, riding style and so on. From our website, apps to social channels and service centers will be able to support our customers across all their needs. I'm going to do it all with a level of personalization that does not currently exist in this industry. We talked about how we're going to use online platforms to help consumers discover, engage and transact their brand. Now I want to talk about how we're going to elevate the riding experience. As you know, suspension is a unique category that's highly personal to each individual rider. The way you set up your suspension is based on how you want your bike to feel. And what feels good to me might not feel good to you. Our goal is to make sure that it is easy to set your bike up so it feels great for you. One of the solutions we came up, we found our latest LIVE Valve offering designed specifically for eMTB. Those who don't know LIVE Valves and electronic control suspension system works automatically just your fork and shock as the train changes. The other thing eLIVE offers is the ability to preselect riding tunes for the type of riding experience you're looking for. Let's turn our attention to aftersales support, specifically maintenance, servicing and custom tuning. We produce high-performance products. The consumers pay a premium for that performance advantage that we provide, to keep those products performing on such a high level they need to be serviced. But for everyone else, we suggest 125 hours of riding once a year. Servicing suspension is actually pretty complex. It involves special tools, equipment as well as a lot of skill and experience, and it's not something we recommend for a DIY project. Our goal is to make it easy as possible to get your products back on your bike and one of the ways we're doing that is with digital tools, allowing our riders to schedule maintenance. And secondly, we've invested in global service network. So there arises a plenty of local options. Around the world, we have 4 world-class corporately owned service centers. We also have 53 factory service centers trained by ups and operated by our distributors. In addition to that, we have thousands of technicians across the globe. Last year, what does that mean -- last year, we serviced over 600,000 services, in last year alone. We started talking about our athletes and how their needs drive us to deliver excellence. I want to end by highlighting a cultural insight that makes our company unique. It's the fact that our staff and athletes are more similar to think. Many of us in this organization have a racing background. We're all competitors. When we race, we want to win. Those same instincts motivates in business. We want to make sure we have the best products. We want to make sure we innovate, outpace and everything with the competition. The desire to push the limits further drives us, knowing our best today is starting point for what we create tomorrow. To borrow the words above FOX, we are never done. Rich Winters.

Thanks, buddy. Thank you. Good morning. Welcome to Georgia. Thanks for coming and visiting us. It's a great place. We brought the rain, kept the temperature cool. A lot of times, you'd be dissuaded by that can say, oh, can I get out and enjoy stuff? Well, mud makes it really fun. So I'm excited about that. Hopefully, it does lighten up a little bit and you guys get to do experience some of our vehicles and bikes and the track scenario. The tech center is beautiful, by the way. We built that a couple of years ago. I think you'll really enjoy it. I think it's a great environment but my concentration is really horrible when I'm there. All I want to do is get out on the track and watch the cars go by and be out on the trails. And so I don't get much that. So our Gainesville facility. So a few years ago, the company made a decision to move corporate headquarters from California to Georgia. Braselton, which is now in Duluth, a little better location for our corporate headquarters, I believe. And then we said, okay, well, we're going to move manufacturing here as well. And so we looked at it, we bought 23 acres across the road and said, all right, let's develop our building. What do we want? How fast we're growing, how can we make it so that it works for us for the future? We really quickly understood, we couldn't live on 23 acres. So the nice thing is 41 acres right across the street was available, and this is where we chose to build this facility. We started this about 15 months before occupancy, which is a pretty good time frame for construction of a facility this size, and especially with some of the things that we put into here. But COVID happened in that as well. And we all know what that did, it really slowed some things down. So we actually built our first line in here when we got occupancy, on the other side that we'll walk through in June last year. So you'll see as we go through here, how well we fill that up. With our transitions of our factories in California into this facility, our goal is to get that all transitioned over here by the end of the year. We're in pretty good shape. We'll do pretty well, maybe up just a little bit. But if we're off, it's because we got some additional demand, and we got to stay in place for a little bit. So it's not a bad thing. All right. This building, when we designed it, we did it for flow. So you can see the size of our products, the components that go through here, a lot of secondary processing on these products. And so we wanted to set this up to be able to flow through our products very efficiently. So as we set this up, the raw material, which is here on this end of the raw material side, flows into our machining, flows into our anodizing, into a warehouse, which we call a supermarket, because we don't want anything to stand there very long. Everything to me has an expiration date. They are more than 5 days, you're in the wrong place. And you move into your final assembly and out the shipping side. The other nice thing about this is if you look up, we have lots of space. So our material handling systems can be all done overhead. We can build mezzanines. There's a lot of different things that we can do in this footprint of the facility. So on the machining side of things, we're only about 40% transition from California to Georgia on the machine shop side. We had about 78 machines out there. This facility and footprint right now will hold about 107. So about 30% more growth within this. Really nice thing is that we transition things as they work. If you want to eliminate variables when you're doing a transition and bringing up new factories, if you try new things, it just slows you down and it's harder to learn. We needed to get up to capacity really, really fast. So we transferred it as it is. There's lots of opportunities for us for automation in different machining centers and different ways to do business that drive a significant amount of capacity through this facility. So we do a lot of aluminum stuff. We do some steel products as well. You see all of our interleave steel and some of our bodies are steel. We have a lot of CNC lathes mills, turning centers. Deburring tumblers, all the things it takes to complete a product. We get a lot of forgings. You'll see some forgings out there on the floor. Forgings is a nice way to get the great content, the strength you need in the product and much easier to machine, spend less time on it. Great quality control within this, and we can completely control the flow of material. So we build to what production is outputting on the other side. So we try to keep it connected completely. Some would say, well, that doesn't make your machining centers completely efficient in utilization, but it makes our site completely efficient in utilization. So, okay. The other thing we did here is when we looked at this, we said, we have a lot of secondary processing. In fact, nothing we make doesn't go through a secondary processing step. Biggest processing step that we do is anodizing. Anodizing is a pretty, pretty easy thing to do. Plating -- other plating options are -- have a lot of chemicals and a lot of issues in supporting those. Anodizing is relatively easy. What we have noticed out there as well is that the secondary processing companies, if you go and see them, they look like they're from World War II because a lot of them are. And the reason they are is nobody can get environmental controls in place. It's very expensive to retrofit your site. So they just don't make the investment. They continue to kind of do what they do. When you have a greenfield site, you have the opportunity to go and say, hey, here's what I'm doing. Here's my plans. Very easy to get permitting. Your structure is built around it. You'll see when you go on anodizing, it's extremely safe. We built it for growth and capacity, and it's been just a fantastic implementation for us. You'll also see that this is one of the most state-of-the-art anodizing facilities in the country. So all automated. It's pretty cool. Except loading rack, racks are tough. Right now, we're only using about 30% of our capacity in anodizing in its current structure. But we know with anodizing, the really nice thing is you can run 24 hours a day, 7 days a week. You'll see the expansion opportunity we have in that. And we will start to pull in outside source parts to anodize as well. Anodizing can be really expensive, but it's a lot of material sitting on the road, driving around, quality issues, the more we can control that here, the better. You'll also hear about our quality benefits. We have our fantastic orange color, which I mean, if you can own a color, it's got to be orange. I don't drive orange cars or anything like that, but maybe a couple. We had great difficulty getting our anodize past. It couldn't pass UV, it can pass ware. We blew them all the way. We worked with the chemical companies. When we put this together, we have fantastic process in this. So it's kind of funny too, some of our customers come in and they see it. And now they want some of their parts to come in to be anodized with us. So I want to have to work something out there. I don't know. All right. Then as you move through, we'll go into the warehouse, like I say, the warehouse, it is also fully automated. We don't use all the automation now. I don't want to lie to you, but it is set up for it. As we get settled in there and the overhead delivery systems in place, you'll see it's fully automated. It doesn't take people, runs on a magnetic wire, goes locations, pick parts and send them to the floor. And then what we have is super marking. You'll see that it's a combo basically. So we do have to kit certain materials because as Tom alluded to, we have a lot of different SKUs. And we sell to everybody. So if you as an individual want to buy it, your order could come to us and we have to pick that, those 2 or 4 shocks and send them your way. So we do have a lot of kitting and we do have a lot of bin control systems. But as we move through into the assembly area, on the off-road side of things, aftermarket and OE, we're pretty close to about 80%, 85% done with the transition. During that transition, we also launched new lines. You'll see the forward line, which is the state-of-the-art -- is our state-of-the-art product. It is the most complex product. If anybody thinks about a shock and you think how many parts are in this thing, well, in some of these complicated ones, over 200. So -- and it's a pretty precise assembly process. We do all the B2C, B2B, OE applications, race applications intercompany. Center company is always fun anyway because they expect to be first. And we try to say, well, you need to forecast better because we have open communication, anyway it's intercompany. The shock series, we produce everything here, 20, 25, 30s, 35s. And we support all of our architectures, right? And we -- right now, we have about 12 lines set up out there. We haven't broken into 2 halves right now. So 1/2 is our off-road, our aftermarket and OE roll out. This is in a clean room and anybody who's working in electronics industry in the past or the storage devices or anything like that, this is not a 100,000 clean room. This is a flow room. And what it does, it kind of keeps our debris down so that when we build our interbodies and assemblies and valve assemblies we don't get debris and shims and stuff, so we don't have quality issues. And then on the other side, we're just launching the power sports. So we have 2 customers here transitioned already. We actually have 4 as of this week, and we'll get the rest of those transitioned here, most likely through the end of the year, maybe a little bit into the beginning of next year. And then it goes out to shipping. You'll see our shipping area is pretty small, also by design. What we don't want to do is become a distribution center in kind of expensive floor space. So we can use distribution centers. We use a lot of distribution partners. So we try to flow material through there pretty fast. You'll also see what we call dunnage. Dunnage is a big plastic container that holds the OE products and we recycle it. It just cycles back and forth. But it is big containers, and so you may -- you're going to see a whole bunch of stuff ready to go over there. So -- our final line is the transition. Polaris and BRP are the 2 big ones. We already started the Polaris transition process. BRP, we won't start until the next quarter for us. So all right? That's it. No, I think I'll take you on a tour. Better to see it than just hear about it, right? We'll go right over here to the left-hand side, and we'll get you all outfitted. That was exciting. You made it back. That's actually really exciting because that place is pretty big, so people get lost all the time. While you're eating lunch, we want to continue the program so we can get you through this and then out to the track and field and all that fun stuff. What I'm going to do now is introduce Jackie Martin to come up and talk about something that we've commented on historically, but we've never been as fully engaged as I thought we needed to be and as our Board thought we needed to be. And so Jackie is going to come up and really tell you our story on ESG, on diversity and inclusion, how important that is to how we go forward, how important it is for not only our own workforce, but the communities in which we serve. So Jackie has been with us for about 1.5 years now -- a year. Well, it feels like 1.5 years and joined my team within that year to really take over this mission, and she has done a phenomenal job. So I think you're going to like what you see. Jackie?

All right. It's okay. You can clap. I heard one clap. All right. Well, good afternoon, everyone. Did you enjoy your tour. Yes, it's very shiny out there, which I like, shiny and new and bright, super cool. So thank you. Thank you all for being here. Thank you for your attention thus far today. And of course, I have the illustrious lunch hour. So thank you. Thank you for paying attention as you eat as well. So let's talk about purpose and inclusion. The first thing people ask me when I say, this is my job is, what exactly is that? What does that mean? Purpose and inclusion, those 2 words by themselves, let alone together are very amorphous, they're not very tangible, not like all the stuff that you just saw being made out there, which is extraordinarily tangible. And so that was the challenge that I was facing stepping into this role. But that is, in fact, the beauty of being here at Fox because we're all about stepping up to the challenge. In fact, you heard how we say our mission is all about challenging the impossible. And so purpose and inclusion is one of those softer spaces in which a new challenge has presented itself to us. But here at Fox, we have such a strong legacy of winning, right? So it's going to be great because we've got this championship mindset and the podium and being a leader is where we belong. So the question really is when it comes to purpose and inclusion, how do we take that legacy to the next level? What does purpose and legacy really mean? It's about sustainability and making an impact for a very, very long time, so much so in a way that it inspires others. And so when I was thinking about how exactly to set up today's conversation, I started to think about what the Redwood forest actually means today. So the Redwood forest has actually been up and in existence for thousands of years. The trees continue to grow to new heights each and every year. And some may have heard this story as it relates to teams and culture and leadership. But the question still remains, why does the forest continue? It's because there's one singular mission, and that is to eternally thrive. And that mission is supported by an intricate network of routes underneath the surface that we cannot see and is yet again intangible. And so how do we use this as inspiration for us as an organization? That's where the journey really began for Fox to think of itself as a new kind of champion, one that is all about creating inclusive workplaces that ultimately will fuel a better world. So with that in mind, we thought it prudent to actually think about our routes and how we can extend our routes in a different way. So planting new routes. That started with our purpose, our mission, to challenge the impossible and to lead in a never-ending pursuit of maximum performance. Now on its face, that seems to be very product focused. And it resonates 100% with everything that we do, all the premium products that we make, the high-quality systems and solutions that we deliver. But this purpose now means something bigger and broader. It has to do with everything that we do and how we show up and connect not only with our customers but with each other as well. So with these routes planted, very, very early this year, we thought about what does that mean? How do we ensure that we connect as an organization between people, between teams, between business units and obviously, externally with the rest of our key stakeholders? And it was very important given all that's going on in the history of the organization, as you've heard, for us to rally around 6 core values. And you can see them up on the screen. These are the things that are now infused into everything that we do. We're starting to atomize them much more so throughout the organization, through employees storytelling and value shares as well as in our performance review processes to ensure that behaviors are what are expected in order for us to deliver upon our purpose. With these connections of our routes, it was then time to solidify our routes. And that was by articulating our 3 big goals. Where are we headed? What's our vision? And you already heard these come through in today's presentations, right? So one is to become one of the world's most inclusive workplaces. And I'll talk more about that in a moment. The second is to continue to innovate, outpace and outthink the competition as we've heard this morning with our business leaders. And ultimately, it's all around thriving eternally, not just from a business perspective and just looking introspectively, but externally at how do we make sure that this industry continues to thrive and grow in a sustainable way. With that foundation set, there was a unique revelation that we here at Fox are in a very, very special situation in and of itself, right? We have the ability to light the way in ways that others within this industry don't, covering the vast number of elements within our portfolio on the motorized side and the nonmotorized side. What can we do now that we are growing to be effectively bigger, to be better and to do more? Acknowledging the fact that our products go into bigger solutions that ultimately help people connect with the world. But through those connections and through that increased use that creates a risk of actual misuse, of actual damage unintentionally to the very playgrounds that we enjoy. And looking at ourselves and being honest with ourselves and authentic with ourselves, we all agreed that it was time to actually step into more intentionally the ESG journey. Now ESG, I don't know how many questions we've gotten -- since I've been here at least, I don't know before I got here around what are you going to do on with ESG? What's happening with ESG, it's such a big hot topic within all of corporate America, as you all know. But it's also one of those topics that can get to into some sticky situations if you are not authentic and prudent about your approach. And so because this is new for us at Fox, and we are indeed learning as we go in this journey, it was very, very important to us to ensure that we were working with a partner and understanding the current state and assessing our situation specifically within the industry that we sit in. So a few months back, we partnered with a group called [indiscernible] and started effectively a full-fledged materiality assessment. So in this time period, there was an inordinate amount of time and effort across the entire organization in partnership with [indiscernible] to understand data points, to understand current frameworks raters and rankings, where we stand to understand our OEM partners, what it is exactly they were expecting of us as well as our athletes in the community. There were 40 touch points in terms of organizations that we did research on just sitting at a computer or doing third-party analyses ourselves as well as 40-plus interviews with individuals through one-on-one conversations as well as focus groups. So looking at this entire ecosystem, what we were able to determine was that there were these 12 focus areas when it comes to bots and where we should focus for ESG. So I'm going to pause there for a second, so you can take a quick look. These are the areas that across all of those key stakeholders came to the forefront, as areas that we could either be a leader in, meaning there's a gap right now within our space, and we could be the ones that step forward and effectively show and light the way for others to follow. Spaces like talent inclusion and diversity and those that you see here, mostly on the right, in orange. You'll also see things here that are extraordinarily important simply based on the type of products that we make. And clearly, we know that our products being high premium and of high quality, they're made out of metal and oil and components that are extraordinarily important to their level of performance. And so how do we address the aspects that we can't control without degrading the performance of the products and of themselves. And then finally, you have areas that are extraordinarily critical for any business to be able to thrive both from an ethics and compliance perspective and more. So after months and months and months of research, the rubber kind of hit the road and we were ready to articulate what our road map truly was going to be in terms of ESG and how we think about this moving forward. So with that, I'd like to present to you what our North Star really is going to be. So progress happens when we challenge frontiers, and today, we commit, period. That statement in and of itself is simple but extraordinarily powerful and intentional because again, we acknowledge the fact that this is a long journey, and we're at the very, very beginning. But today, we are standing up and taking up the baton to get going in the race. Likewise, what you will not hear today or see in the rest of this presentation are any lofty goals or numeric commitments that are long range and thoughts because there's a lot of due diligence needed and a lot of work needed to truly assess what capabilities, what resources we're going to have to pull together to work on these various things as well as ensure that we are setting up ourselves for success, reality check, if you will, setting the goals appropriately and then reporting out on our progress as we go. But today is a very important day that we are announcing to you this commitment. So the commitment is all around the adventure of a better world, to bend and break frontiers, to push potential further in relentless pursuit of a future where people and planet come first and where adventure, of course, is never done. All of this encompasses who we are as a brand, as a company where our legacy has led us and where our legacy is taking us. And so these are the pillars of our ESG strategic road map. The people frontier consists of talent inclusion and diversity, community impacts, employee health, safety and well-being. The planet frontier is all about trail, access and conservation as well as climate change and GHG emissions. And then the product frontier is about sustainable products and materials, product integrity, design and innovation as well as supply chain, social and environmental impact. All of these are supported by the business fundamentals, and those consist of transparency and disclosure, ethics and compliance, customer data and privacy as well as overall governance. So what you will see in the next few slides is just a snippet of some of the things that we've actually been doing under each of these pillars already. Just to give you an idea to highlight where we've been this year but where we also strive to expand moving forward. So I'm going to start with the people frontier. So as I started last year, one of the things that we wanted to do was to publicly commit when it comes to diversity and inclusion. And so in November, we became a signatory of the CEO action for diversity and inclusion. And for those of you who are not aware, that is a coalition of over 2,000 organizations globally that have stepped forward and have committed to 4 goals. One is around starting to do more to create a culture of inclusion within your own environment. Two is around increasing unconscious bias awareness and understanding. Three is around ensuring that your Board is involved in D&I strategies. And then the fourth is all around increasing overall sharing of best practices between organizations. And I was just actually in a call last week with other manufacturers talking about what we're doing with our organizations, how you get past the barriers or certain individuals or large -- percentage of population who do not have e-mails, how do you communicate and encourage them as well. So with that kind of as our catalyst to drive change, we launched an internal initiative called Realizing inclusion diversity and engagement at Fox or ride at Fox. And ultimately, that rallying try came through as together we ride. So everything under ride at Fox is really meant to drive that inclusive environment as well as increased education. Part of that included a 6-part virtual learning series that went through a number of different components in the space, starting with what is diversity inclusion and what isn't it, all the way down into the weeds of things like transgender one-on-one awareness because we have members of our teams that are, in fact, transgender and then back up to how do you engage in respectful courageous conversations. That also led to unconscious bias workshops as well as anti-harassment training. We've also stood up an employee council, who is now responsible for atomizing all of this within their local environment. And they are starting to do lunch and learns and community reach -- outreach efforts within their organizations as well. So that's just a little snippet of what the talent inclusion and diversity efforts have been over the course of this year. Now from a community impact perspective, we're also just starting to stand up a global giving program. And the focus areas for that program in partnership with a third-party called Benevity, the focus areas are STEM education, workforce development as well as social equity within the spaces in which we live, work and play specifically. So our first partner that we are -- literally, as we speak, looking to do a launch with within our community giving program, is Bicycle Industry Employers Association. So BIEA, they actually are starting up a bicycle technician certification program with community colleges all around the United States. And the whole point is how do we get more diversity within our industry, where you've got to have opportunities for people to access and get their foot in the door. And so the entire point of that program is to try and target and get half of the enrollees to be women or people from underrepresented groups, and for that program to then feed the bicycle industry, whether it be through opportunities with us or with others that are out in the marketplace. So there's 2 of those starting as we speak in Minneapolis as well as Bentonville, Arkansas. So we're very excited about what that will extend to. All right. So moving on to a few highlights under the Planet Frontier. Trail Trust. This will be our signature program under all of our ESG efforts. Trail Trust, we believe, has the opportunity to be a best-in-class initiative that bridges the gap that currently exists in terms of the sporting industry. And Mike talks about it a little bit earlier. But there's a couple of things that are gap right now. One is ensuring that there continues to be outdoor spaces for people to enjoy whether that be because of access issues or simply because of the increased demand resulting in that misuse, whether it's trail erosion, littering, literally going to land that they aren't supposed to be on and illegally trespassing. So Trail Trust is in partnership with nonprofits. Unlike others, it's not about cutting a check and saying, thank you very much, have added good luck. But finding organizations that are willing to co-create with us to stand up initiatives to fill in the gaps where others who, quite honestly, in the industry may be very myopic in thought based on the type of products that they sell, how do we leverage the power and the strength between our motorized and nonmotorized sides of the business? So the whole mission of Trail Trust is all about championing sustainable adventure for all and all is a very pertinent were there as well. Together, we'll turn adventures into advocates. So at the end of the day, the 4 components of Trail Trust are this. Promoting responsible recreation with the increased demand, increased use creates the potential for loss of opportunity in the spaces that we love, as well with the advent of the e-bike. Now you have a motorized bicycle on trails where that wasn't a motorized vehicle before, that is causing some concerns as well. So what can we do across both of our businesses to promote more responsible recreation. The second piece is around, of course, building and maintaining trails, not just in the spaces where they exist but in spaces where they don't, more importantly. And that drives the third piece around expanding opportunities, looking at diversifying the marketplace and bringing down some of those social barriers that currently exist that preclude this notion of inclusion within the outdoor sporting industry, all of which, of course, in partnership with nonprofits all over the world. And so this is just a snapshot of some of the organizations that we have partnered with this year in conversation as well as in starting up some seed programs for Trail Trust. Now Trail Trust hasn't officially "launched" from a PR news perspective. But we're sharing it with [ you all ] and there is also an overview on our website so that all can see what we have in plan for Trail Trust. I'd like to talk about a few of these, just to give you an example. So Grow Cycling is our first real partner in this space. Eliott Jackson is here today, you'll meet him out on the trails a little bit in a few minutes, I suppose, if you haven't already met him. Eliott has been a friend of Fox for a very long time. He was a world's champion mountain bike rider. And last year in the wake of George Floyd's murder, he actually stepped back and thought what can we be doing differently within the bicycle industry to break down the barriers that exist and create a more inclusive sport? And it's not just about donating bikes, but it's about providing access where there isn't any, providing coaches and mentors where there isn't any as well as providing education. And so in partnership with Grow Cycling as well as with other founding partners, we are helping to build a pump track in the city of Los Angeles, specifically focused on the intercity youth. And the growth is expected to go beyond not only there, the rest of the United States and beyond. So feel free to ask Eliot more about Grow Cycling when you're out and about on the trails later on. Another one that I'd like to highlight is Tread Lightly. So Tread Lightly, we've been talking with them specifically about the e-bike boom and what that means within the trail systems and the trail spaces. And together, we are working on building a responsible recreation curriculum that is multifaceted, whether it be static information that has just made available online or actual online courses and live webinars to go through trail science, the importance of being responsible while out, both from a safety perspective but also from a trail perspective and beyond. So that work is just starting up with them. And then up in the corner there, the Taiwan Mountain Bike Association. This is a global initiative. So our Taiwan facility is very, very excited and eager to begin to stand up a commitment with the Taiwan Mountain Bike Association, and they're looking at all 3 pillars of Trail Trust. So there's very little public lands there. So looking at trail adoption so that people can access riding publicly. The other piece is around looking quarterly around each region and understanding what trails that currently exist need maintenance. And then finally, taking education to the rural communities to get more people on bikes and giving them the opportunity to connect with the outdoors. So these are just a few examples, but there's much, much more to come, and we look forward to sharing more about this with you. So with that, I'm going to close with this simple note. So this year, ultimately was all about starting, embarking, committing. We've done a lot of work to get to where we're at. There's a lot more work to be done. As we speak, there are teams that are being built -- work teams that are being built to assess again, what resources do we need? What capacity do we need to build? What knowledge do we need to pull on to start to outline the various programs, goals, key performance indicators under each of the streams? And then we will begin to report out next year on progress made as we move forward and expand from there. Again, online, there is an ESG overview document that effectively summarizes everything that I shared today. And we will look forward to any questions that you might have either in a few moments or later on this afternoon. With that, I'm going to pass it back over to Mike.

Okay. Thank you, Jackie. So yes, there we go. See Jackie gets a hand. So we have about 20 minutes left. I want to do about 5 minutes to wrap up, and then we'll do 50 minutes of Q&A with Scott and I. I know we have about 20 minutes left because I can hear cars starting up in the back. But more importantly, Rich says he's got to get the factory back running. I get that. So we'll get out of here by 1:30. Foundation performance and vision. One thing I didn't talk a lot about today, but a good example of this in my mind is what we did in the last 12 months in Taiwan. When you think about Taiwan, at the beginning of last year, the anticipation for what last year was going to be or not going to be was incredibly different. They had no idea of a COVID. They soon realized they were in a COVID. We soon realized that we couldn't travel over there. I couldn't travel over there. Chris couldn't go over there. Scott couldn't go, the rest of our leadership team couldn't go. We were isolated. All of a sudden, we're like Houston and they're a rocket and they're like, Houston, where are you? We're like, yes, we can't help. The challenge was all of a sudden, Taiwan took off. The volumes in SSG exploded. And so then Houston was calling the rocket saying, "Excuse me, we need you to build another rocket and they're like, we're in space. We're not -- you're here. And the reality is they did it. Last year, they built 4 factories. They actually added about 100% more people than they had before. And now their population in Taiwan, our population in Taiwan is about 1,000 people compared to what PVG has here in Gainesville. So an amazing result disconnected from the mothership or Houston, to go with that analogy that's not very good. But to be able to do that in such a challenging time, 0 significant shutdowns from COVID in Taiwan. Every other factory in our system challenges upon challenges, upon challenges. Taiwan just nailed it. So when I think about foundation, having a great team, people knowing what to do and then performing against incredible odds. All the while, Chris saying, "I need you to do more. I need you to do more. I need you to do more. And having the vision to make those changes quickly made us more capable or responding to the increase in the demand before everybody else. So we were literally able to take orders that competition couldn't take when lead times went from 45 days to 400 plus. So this is a great summary slide for the company, but a great example of what we achieved in Taiwan, like many of the great things that we did here in Gainesville. I started the conversation earlier today, saying we set out a 5-year journey in 2020 to get to $2 billion. And then COVID hit, and we had to rethink the plans. We shut down most of our factories. We had to furlough people. Our customers took all the orders out of the system. There was no backlog, there was no forecast. And we kind of thought, "Oh, this is a tough year to start a 5-year plan to grow to $2 billion." But we did okay. And where we sit today, we feel pretty good about that. In fact, as I said to the team, there's always a last word to be said, I guess. And the last word on this is it probably looks more like that. We're doing really well. We're on track. We feel great about that $2 billion. We actually feel a little better than great about that $2 billion. There's lots of challenges ahead, lots of hurdles to overcome, but with the team in place and what we're doing, this is absolutely in our sights. Now I'm not going to tell you what that plus is. But we'll figure out over time. All right. We want to do some Q&A. Scott, come on. If we do Q&A with microphones, I would probably ask you guys just to say your name and firm because it is recorded. So that way, people know where that question is coming from. Okay. We have microphones in the side. And Lisa will take on the microphones.

Larry Solow with CJS. Mike, I'm just curious if you can -- on the $2 billion plus potentially, you talked a lot about new categories in the bike side. It looks like ESUVs -- and how about on the power vehicle side, any -- from a broad level, new categories, maybe military or the commercial truck opportunity. Do you build in material growth or contributions from some of those newer categories?

Yes. I mean all of those have a role in that 2025 vision. We look at those new categories across almost every spectrum. Tom talked a little bit about this. You've got -- in the OE world, you've got new vehicles coming to the market like Bronco. That helps us in both OE and aftermarket on a long-term basis. You had the new J9 platform. You've got other vehicles like the TRD Pro coming out that will expand the volume. In Powersports, you've got not only the hero vehicles that we're on, which are kind of like the highest of the high class. You now have a new kind of Weekend Warrior class of powersport vehicle coming out. They're using a lot of our IQS type technologies and connected technologies. So that's a great expansion of portfolio there. I think I've told you, I am consistently wrong and consistently surprised at how much powersports can grow. And yet they continue to grow on a pretty significant basis going forward. Military is a small number, but we can double it every year. We're doubling it right now. Now with El Cajon set up to run Military, we can really think about the product offering in the portfolio and keep going after Military. I like Military, the margins are great. The contracts are long. It's probably one of the highest margin products in our powered vehicle business, if not the highest. PBD is all about in trucks and jeeps, things like that. It's all about from 2,000 to 3,000 dealers, 4.7 trucks to 7 trucks changes the game. And they are doing so well. I am -- we are 100% confident in what powered vehicles can do. We need chassis by the long-term basis over 5 years, phenomenal opportunity. In commercial, we've been in the commercial for a little while now. I've been talking about it for a couple of years. Commercial in owner-operator vehicles is good, and we're actually reengineering the product now to even improve that. So we're investing further. To get to large fleet operators and get large fleet operators who want to spend significantly more money for a premium shock, we think is challenge right now. We -- they're not exhibiting signs that they want to spend that much money on those big fleets. I think we have some ideas and some answers to go solve that, but it doesn't matter in that vehicle out there, that's a commercial vehicle, and those things are exploding. We cannot keep up with the demand on things like outside ban. And we'll just continue to go drive that and expand that and make it better and better. And I actually think, as I said, in early days, commercial may look more like high-end RV, there isn't a more high-end RV than that out there. So we will find where we can play and where people will pay a premium to have our products. So I think all those categories are going to give us tremendous growth.

Just a second question on the M&A front. It sounds like you're looking at a lot of things on both sides of the business, but it seemed to sound like you're more in the earlier stages of the game on SSG, where maybe there's more opportunities to build around that portfolio? Is that a fair statement?

We've been looking hard at SSG for a while. We would actually prefer to invest today in SSG. The challenge in SSG is the bike business has exploded really for everybody. And with that explosion came valuations that really weren't merited pre-COVID and hard to merit even post-Covid. So we're always going to value seekers, and we'll wait for those things that kind of come back down to reality. We still look at them, but they have to come back down to reality before we're going to probably check those. Now in powered vehicle, there's more opportunity. So it's easier to find a great product, a great company, great team, which is super important and the right price.

Okay. Thanks. Alex Perry, BofA. Just had a question on the gross margin build. So I think you threw out a target sort of 36% to 37% gross margin by 2025. Can you just help us with sort of the puts and takes there? And also how you sort of incorporate the 250 basis points plus of manufacturing efficiencies on the transfer of the Gainesville plant?

Sure. Thanks, Alex. We did talk about on the PVG side of the business kind of across all PVG, how moving everything to this factory would drive 250 to 350 basis points of gross margin improvement. Obviously, we're in the very beginning of that. We still have Watsonville opened in California. So we have some duplicative costs. And so I would argue, you haven't seen any of that yet. And yet we've seen some increase in gross margin from mix, a higher percentage of bike business, some great volume at PVG. And then in the first half of this year, a little bit lower OE business than normal just because of the model year changeovers and things like that. So I think as you look forward, we're looking at focusing our growth that Mike was just talking about, to some extent, on some higher-margin business, keep promoting our aftermarket, which is the business that we love. We love the aftermarket. And how you grow that to kind of boost the piece that's missing to get from where we are today to that 36% to 37% gross margin when you kind of factor in, let's just call it, middle -- the midpoint of that 300 basis points across PVG, just from this and how this trickles down. So shocks from here going into other parts of the business and so reducing cost across the vertical integration that Mike was talking about earlier. So is that helpful?

Craig, from Baird. The power sports industry, truck industry, they're all going to go through this evolution into electrification. I'm curious how your products plug into that paradigm?

Yes, it's a good question, Craig. So there's a couple of challenges that have to be solved for things like powersports, side by side to really migrate to high-performance electric vehicles, lower weight, hard to suspend effectively a vehicle that weighs a tremendous amount of weight and length of battery. If you're taking your side-by-side out to the desert for a weekend, you really don't want the battery to die Saturday morning. Otherwise, it's like something to sit around and toast Marshmallows off them. So they have to solve those 2 things. We're working with the companies now to do it, and there's some pretty interesting things out there that we like. I think it's a few years out. In that 2025 vision, you're going to see investment and you're going to see engagement. In some cases, you won't see it because it will be secret. But you'll see investment in engagement in getting to an e-vehicle platform. I don't foresee significant revenue in that 2025 vision from an electrified vehicle, either on road or side by side. Now if I said 2005 to 2010, I think it's an entirely different ball game. But companies like Rivian and others that I think are very interesting, need to be able to make it to market with a product, a vehicle that's performance-oriented, not just electric. The Ford F-150 Lighting is a great truck. But it'd be like putting our shocks on a base F-150. So while we need to be on an electric truck, it make no sense whatsoever. So we will be on the products that make sense I think those products are still a few years out, not in the revenue plan currently. We could add them, that would be incremental, but I do think they will be 2025 and beyond. Right now, as you know, in most of those vehicles, we're already designing 2024. So I can pretty well tell you where we're going between now and then. Does that help?

Yes.

Mike from Truist. Maybe a question for Scott, just on pricing, and I guess, how you guys are handling that. It's a very fluid dynamic, and we all know what's going on with steel and aluminum and labor and all these key input costs that you obviously face. Maybe talk through how you go about pricing with your customers and how that plays into your growth outlook near term?

Do you want to come up here, Tom? So obviously, it's a lot easier to raise pricing pretty quickly in the aftermarket. I think the challenging piece is raising prices with the OEs. As for those of you who follow like the powersports OEs, they're talking about every quarter, how they're raising prices because their costs are going up. Well, that provides a nice little backdrop for that conversation. I think it's typically a little bit harder on the automotive side. But I think we're in an environment where everybody realizes what's going on. There's no one sort of putting their head in the sand and saying, "I don't know what you're talking about." And so in some cases, we'll look at even surcharges instead of just price increases in order to pass along some of the increased costs that we're facing, whether it's steel, aluminum, freight, I'll turn it over to you at this point.

Yes. I mean I coined a new phrase, I think, recently or we did called dynamic pricing. It used to be -- in our world, you really do price setting once a year, both in SSG or PVG, you load the new pricing for aftermarket. You load the new pricing for your OE relationships and off you go. As of this year, it's like every quarter, if not quicker. So we're literally pricing updating, pricing, updating. The challenge you've got in pricing even a little bit in aftermarket, but as Scott said, mainly in OE is there's a lag time. If you're a buyer of material, you're getting material in and you go, "Oh, here comes a surcharge." Now for me or us to immediately convert that surcharge or increase to a customer order that's going to go out the door to the next week, it's tough to do. So there is a lag, but it's a weekly conversation. The good news is, for the most part, we can push it through. It may take us a week or 2 or a month to get some of that done. But I think the team has done a great job of getting out ahead of it as best we can. And I think we're in pretty good shape.

Jim Duffy with Stifel. A couple of questions on your addressable market slide. The SSG group, there was a slide suggesting that you see opportunity to participate in more democratic price points. I know you've had great success with Marzocchi there. Can you talk more about your strategy in that respect? And then I have a follow-up on the powersports side.

Yes. Our idea in that space is right now, we kind of play Marzocchi side, we kind of play in the $2,500 bike to the $15,000 bike. It's a great range or price range. But there's about 1 million of those bikes produced a year, give or take this year, obviously, as many as they can produce. So maybe more. But if you go down to $1,000 to $2,500 now our Marzocchi range. That's at least 1 million just in that narrow price range. And so by playing more effectively there, we think we can be very compelling with our product, Marzocchi brand, a great product on a great bike. And keep in mind, our biggest competitor goes well below that $1,000 bike. So for us to stay only in the ultra high end on FOX makes sense. But to say only the ultra high end means we're missing a really compelling high-margin growth area the mainstream, that's still not going to be on a Walmart nothing against Walmart or Dick's Sporting Goods shelf. We're still in a bike shop, and we want to be in that space. That adds a lot of volume, a lot of opportunity.

And Mike, anything on timing there? Or is that ...

Last year, last year, and then COVID hit and then we were out of capacity. So the reality of it is a great question, Jim. We intended to actually have it in production this year. But even with all the capacity that Chris has added, we couldn't build that product line if we wanted to. And our customers don't want us to stop building $1,000 Ford for a $150 Ford. So until we kind of rightsize current demand, we'll probably leave a lot of that on the shelf and use it for a later date, a later opportunity. It will help us grow when things start to plateau, which is not a bad strategy. The best part of the strategy is all the design work we did to create those products, we're now using and helping drive better performance, better efficiency in the products that we already have. So almost like value engineering, if you guys are used to engineering terms, we're value engineering from the bottom up. So we will get back to it. We will do it. We just need to get through kind of this huge capacity push that we're in right now.

Understood. And then on one of Tom's slides where he was outlining the addressable market, One of the large numbers in vehicle units was street vehicles. We didn't hear you talk a lot about the street vehicle opportunity market. Is there anything you have to share there?

Yes. I mean, that's been an important market for us since RideTech when we did that acquisition. So we still firmly believe in it. We are doing product development in that area. Product development starts an aftermarket before it goes to OEM. So we're going to stay in that aftermarket category for a while. That business has grown quite nicely. So it started from a pretty small base, but it grew really well over the last 2 years, had 0 impact from COVID. What we have found in street performance is it just kept going, never stopped, never slowed down at all. I think you'll see more from us from a technology perspective in that space. And you might even see us think about acquisitions in that space.

Ryan Sundby with William Blair. Mike, can you talk a little bit more about what international expansion looks like for PVG. Would that be leading aftermarket? Or can you coordinate with OEMs as you enter those markets?

Great question. As you know, SSG is already fairly expansive in international. So they're doing a great job. In powered vehicle, it's pretty much a North American play, with the exception of some aftermarket, Middle East, China -- a little bit of China and Australia. Now Ford launching the Ranger Raptor took us to Australia. So that acquisition gave us a foothold in Australia to go develop Australia more. You're going to see Ford and others grow their international markets with premium vehicles. So I won't define for them, we'll let them do what markets they go to first, but we're going to go grow both in OEMs producing from Gainesville as well as aftermarket as a contributor to that overall growth in those markets. I think Australia, China, Middle East and a few other areas are significant growth opportunities for us. And I don't think that should be an insignificant part of our business. Right now, it is. It definitely doesn't need to be. We don't have that overly built into 2025, but I think that could be some really nice support and potentially upside in 2025.

Rudy Yang from Berenberg. So I think you mentioned the cross owners of FOX products for SSG and PVG were about 3x more than you had expected. So my question is how substantial do you see the opportunity to kind of cater towards or push the amount of these customers further? And how is your strategy going to differ now compared to in the past?

And the question you said was the crossover?

The cross owners between the 2 segments.

We actually found that to be a lot higher than we thought. So yes, and it's funny, you think about outside van as an upfitted vehicle in our upfitting business, but it came via mountain biking because the people actually buy outside vans are typically mountain bikers, not upfitted truck owners. So that synergy of people that want to get outdoors and they want to take their recreational vehicles and their mountain bikes is very connected. And I don't remember the exact number, Jackie, you might remember it, but there was a very clear correlation between people that are in both mountain biking and trucks and powered vehicles. The reality of it is sometimes they want to be different, and we have to treat them differently. And sometimes, we want to sell to them with all of our product portfolio. But I think it's a great opportunity for us. I mean I think what you're finding is people just want to do something different. And that means they might go buy a Toyota truck and put a couple of mountain bikes in the back or they might go buy outside van and put mountain bikes in the back. Either way, we're good with it.

Were you ready to go, Rod. Or Tim, do you have one?

Tim's got one.

One last one. When you look out to '25 and you talk about smart and connected products, do you really have anything there that is -- would be equivalent to Live Valve or a successor to Live Valve -- Or is it -- Is that something that's going to come along more slowly?

Yes. It's not only equivalent to Live Valve. Good question, Tim. It's not only equivalent to Live Valve, but it's actually the further development of Live Valve and continue to make Live Valve more relevant. Some of the things that Chris talked about with like the data app and the ability for your vehicle to know where you are, the conditions where you are, what's happening that day, your driving style, all those things make that smart and connected experience even that much better. Imagine taking that mountain bike and going to Moab. And when you get there, your iPhone tells you -- or your phone tells you, "Hey, you're in Moab, and it's raining, we're going to retune your suspension." And oh, by the way, the guy that last rode this trail did it like this with this tuning and we think it's a pretty good match to you. And your bike just does it. I don't know about you, Tim, but when I go get to my mountain bike, I'm asking Chris's guys, would you help me get to set up right? That would be cool because you literally just get on your bike, it tunes itself and you go. Absolutely, by 2025, I think you'll see that. Okay. Thank you for your time. It was a good day. I look forward to seeing you guys over the next place. We'll go there.