Hexagon AB (publ) ($HEXAB)

Ladies and gentlemen, please welcome the Vice President of Investor Relations, Elizabeth Chwalk.

Good morning, everyone. Thank you for joining us today. My name is Elizabeth Chwalk. I lead our Investor Relations here at Octave, and we are excited to be hosting you for our first Investor Day. We have a great agenda ahead. Mattias Stenberg, our CEO, will kick us off with an introduction to. Jay Allardyce, our Chief Product Officer, will then take you inside the platform and product strategy, including a customer example from Mladen Stojic, and we'll take a short break at 10:15. When we come back at 10:30, Tamie Adams, our Chief Revenue Officer, will walk you through our go-to-market strategy; and Ben Maslin, our CFO, will follow with our business model and financial details. Mattias will then close with a few final remarks before we open it up for Q&A with the full leadership team on stage. Before we get started, I have a few things to share, so bear with me. First, certain statements we make during this presentation may constitute forward-looking statements that are subject to risks, uncertainties and other factors as discussed further in Octave's filings with the SEC, including the Form 10. Actual results could differ materially from our historical results or our forecast. We assume no responsibility to update these forward-looking statements other than as required by law. Second, during this call, we will present both GAAP and non-GAAP financial measures as a reconciliation to non-GAAP -- a reconciliation of non-GAAP to GAAP measures are available in Octave's Form 10 filed with the SEC as well as the appendix to today's slide deck. Third, today's event is being webcast live and recorded. The slide deck, along with a recording of today's presentation will be available on our website after the conclusion of today's event. So with that, I'm thrilled to introduce and welcome to the stage our CEO, Mattias Stenberg.

Thank you very much, Elizabeth, and welcome to all of you. Good to see so many people here, and welcome to the people online as well. I know there are a lot of people watching online, so I hope you can follow along as well. I'm super excited to be here with my team to introduce you to Octave. I'm sure some of you have maybe followed Hexagon for a long time and may know some about the company and some are probably more new to the story. So I will do my best to introduce you to the company and tell you why I think this is a fantastic opportunity. Maybe a few words about me and my background to give you some context. I've been with Hexagon for 17 years. I started there in 2009, done a bunch of different jobs there. I ran strategy and M&A for about 7, 8 years. So you could say I was clearly part of building the company that is Octave today. I also ran the ALI division, which was -- is kind of the biggest part of Octave today. It represents roughly 60%, 65% of Octave. I ran that for 8 years. And I want to say it's been great. I'm very proud of the journey we've had at Hexagon. It's a fantastic company. It certainly a very different company when I started. I think it has doubled and doubled again in terms of revenue and profit. So it's been a good journey, but I'm honestly even more excited to be here and to get the chance and the opportunity to lead Octave. So that's the agenda today, lay out the strategy and the plans for Octave. All right. But before I go into the detail of our strategy and our customers and so on, I thought we could kick off with some basic numbers to give you the context. We generated roughly $1.6 billion of revenue last year. Roughly $1.1 billion of that was ARR or recurring revenue. So if you do the math on that, that's roughly 66%. If you look at our customers, one key thing to understand about the company is that it's some of the biggest companies in the world that are our customers. Roughly 60% of the Global Fortune 500 is on our customer list. So this means that these are mission-critical industries, assets, infrastructure, it's the big companies in the world. They are important for society, for the world, and hence, we are important. If you -- it said in the video there, I noticed that we have 14,000 customers. That is true. But if you cap it at customers over 10,000 in ARR, the number we focus on is the 4,500 customers. We have a long tail of smaller customers in our [indiscernible] business. Okay. Another key metric of our business is our retention. It's very high. It's a very sticky business. We have about 97% GRR, if you look at those 4,500 customers. We have about 105% NRR, which is a good number, but it's also a number that we want to drive north, and that is something we will talk more about later today. We have roughly 7,200 employees around the world in about 45 countries. So it's truly a global business, well diversified around the globe. We are also a growing and a profitable business. If you look at our ARR CAGR the last 3 years, it's been 8%, also a number that we want to drive north, but I think it's a good starting point. And like I said, we are a profitable business, right? We generated 31% adjusted operating margin last year, and Ben will dig into more on the details about that later. And it's also a very cash-generative business. We generate roughly around 20% free cash flow margin. Okay. But let's take a look at our customers, and I'll -- we divide our customers to simplify it into 3 groups. The first group is the people who build the world. So you see some names here like Bechtel, Fluor, Worley, Jacobs, Wood, Skanska, VINCI. I mean, it's -- these are the companies that truly build the world. Nuclear power stations, desalination plants, data centers, pipelines, big complicated infrastructure. In those environments, there is no margin for error. When these systems fail, they don't fail quietly. The shock waves are immediate and global. So to simplify it, you could say these are the companies who cannot afford to be wrong. The other big customer group is what we call the owner operators. So companies like Shell, Exxon, Kimberly-Clark, [indiscernible], BASF, Pfizer, NVIDIA, Tetra Pak, the list goes on. These are the companies that own and operate these assets for decades. So think refineries, distribution centers, water systems, research facilities, could really be any asset you can think of as long as it's usually big and it's complicated. And again, I mean, why we are key to these customers is because we are truly the backbone of their engineering, the system of record, if you like. So the key question though that we're going to talk about in this presentation today, do these owner operators get the data, the context, the digital twin handed over to them after the design and the build phase? In most cases, the answer is no. And in that handoff, the context dies, right? And when context dies, that is when risk appears and compounds. If you look at our third customer group, you have to think about major cities. We -- our software is installed in most of the major cities around the world, Hong Kong, Copenhagen, New York, Boston, Washington, North London. You can also think about national power grid [indiscernible] think about big events like a presidential election or the Olympics. Our software protects the people, the emergency services, critical infrastructure, really provide a situational awareness around the situation, giving live updates, dispatching the right type of personnel and answer to a situation. So if you look at this on a global scale, we say that our software protects 1 in 8 people in the world, so roughly 1 billion people. And since we're here today in New York, we can say we're protecting all of you in this room and the whole city because the New York Police is one of our big customers. Okay. So you just saw 3 types of customers in 3 very different worlds, all critical, all complex, right? But they're all connected by one life cycle. The facility is designed in one workflow, it's built in another, operated for decades in a third and protected throughout. But the problem that I'm going to be discussing today is that these industries, they did not evolve as one system. They evolved as 4. We talk about design, build, operate and protect. Each one optimized independently and the intelligence created in one phase rarely carries over to the next. And that is costing these customers in ways most of them, frankly, cannot even measure. Over the next 4 years, more than $24 trillion will be deployed into industrial systems. Out of that, roughly $1.2 trillion will be spent on software and digital transformation. And yet the results are not there. Studies show that roughly 70% of digital transformation initiatives fail or at least don't give the full value expected. And only 8.5% of capital projects meet their cost and schedule targets and less than 1% of these projects achieve all the promised benefits. So what's the takeaway from all of those numbers? I mean, to me, it is the world is not short on capital. It's not short on technology, but it is short on results. So why is that? It's kind of like I alluded to, right? This industry or these industries, I should say, was -- has been built in 4 separate workflows, no shared context. Each one improved, each one powerful. Companies have optimized design, they've optimized build, they've optimized operate, but it's disconnected. So as a result, 96% of engineering and construction data goes unused. So the system has no memory, the same mistakes are repeated. The same risks are rediscovered and the same costs are locked in time over time again. So if you want to simplify it, you could say intelligence is created everywhere, but it's connected nowhere. So what happens when context doesn't carry forward? Well, the cost escalates and the risk escalates and actually, let me give you -- try to give you a real example. Let's say you have a piping specification error in a design of a chemical plant. You're still in the design phase. So you can fix that. Maybe that's an hour of work. But let's say it goes to the -- it goes into construction, right? Now it becomes a procurement error. You have -- you might have to take out the whole line, right, cut it out, replace. Now we're talking hundreds of thousands of dollars. Let's say it's missed in construction as well, right? And you build this into the facility. Now it's not just a dollar problem, it's a safety problem, right? The worst case, people get injured or die. So one error, same error, right? The only difference in the cost here is the earlier you detect it. Okay. So how do we fix this, right? This can't be the end game. How do you fix a structural problem, not with better point solutions, right? That's already been tried. That's already been built. Every workflow in this design, build, operate protect today has good software. That's not a problem. What's missing is the connection. Since these assets need to operate as one system, the software that manages them needs to operate as one system as well which is why we believe this market is converging to one system of record, a system where every system decision is informed by what came before and what improves and what comes next. That is what we mean when we say life cycle intelligence. And to my knowledge, at least, Octave is the only company that has such a platform. Because if we take a look at what competition does, there are many competitors, many point solution providers. Like I said, each of those solutions works. They solve a real problem, but they were never designed to work as one system. So what happens there? A 3D model lives and dies in one department. Construction starts in a separate system. You have to re-key information. Operations begin with no memory and safety tools arrive with no knowledge of the asset. 4 vendors, 4 databases, essentially 4 versions of the truth. If you compare that to what we do here at Octave, it's very different, right? The design, the digital twin is born. We carry that through the life cycle, constantly updating it. You make a change in one system, it ripples through the others. And I'll describe this a bit more on the next slide. So if you look at our platform, this is not point solutions or disconnected products. Our customers, they usually start in the design. They simulate hundreds or maybe even thousands different ways of building an asset. They come up with the most optimal design. They decide on that. And then this digital twin, this design gets handed over in work packages to the different EPCs or construction companies, right, and suppliers that are building this facility or asset. And they keep this constantly updated, right? So if you make a change in the design, it changes your schedule, your cost, suppliers, materials, all of this connected, right? So once they've done building this facility or asset, they hand it over to an owner-operator, they now have a real live digital twin. Why do they want that? Well, they want to do asset performance, right, predictive maintenance, optimization, quality assurance. And it doesn't stop there because once an asset is live, they make tens of thousands of changes to them every year, right? You have to think about these assets, many of them are like mini cities, right? They are huge assets we're talking about. Okay. And finally, of course, they want to protect them. I don't think I have to mention what we see in the world going on, right? I mean everybody is interested in having a 360 live view of their assets. Okay. All of this also is supported by a data backbone, a platform, if you like, where we provide an integration layer so that the customer doesn't necessarily need to know which product they are in, right? It's supported by one backbone. And on top of that, we are right now building an agentic layer that we call Octave Aria. This is still in the beta mode in the R&D department. So I won't steal Jay's thunder, our CPO. He will come out later and talk about what we're doing here. And the final thing I'll say, this -- we are not building a closed system here. We work with all the cloud and hyperscalers. We can connect to any competitor, any peer, any in-house system the customer might have, doesn't matter. We can connect all of this to our system. Okay. So that's the platform. That's what we do. What about the market? These are some numbers from the kind of big research companies like Gartner, IDC, McKinsey. They estimate that this market is today worth roughly $28 billion. They also estimate that it's going to grow to about $40 billion until 2029. The reason why they believe that is because of these structural growth drivers you see on the slide here. A couple of the big ones, in my opinion, is the growing need for energy. It's very clear to me with the investments in data centers and things like that. Digital transformation in itself, it is a buzzword. It has been around for a long time, but it's still very early in this journey. Regulation is certainly a driver. And then I would say general modernization of public safety and infrastructure. And of course, AI. I mean, AI does not shrink this market. It expands it. And I'll get back to the AI topic in a minute. But if you do the math theoretically on this market, and let's say, we win 1 percentage point of market share, that would be worth roughly $280 million in ARR. So it's a big opportunity. Okay. So it's a big market. Who are we in this market? Well, we are, in fact, the recognized gold standard in this market. As you can see from the screen here, we have more than 35 different industry awards from the most respected analyst firms in our space, Gartner, IDC, ARC, Verdantix and so on. And it's not for 1 or 2 products, it is truly for the entire platform, as you can see. Okay. I said I was going to get back to AI. So I'm going to say 3 things about AI. I get this question in every investor meeting, so I thought I might as well address it. I mean, the first thing I want to say is back to the mission criticality, right? You have seen what our customers do. They build nuclear power plants like protect entire cities. They don't need probabilistic outcomes. They need deterministic outcomes, right? So you cannot tell an operator that it's a 90% chance this valve is safe, right? It's not good enough. So to me, we have a big head start. We already sit on this data, right? We are the backbone of their engineering. So it's our job to put AI on top of that. So I see it as a great opportunity. The second point I want to make is we sit on decades of this data, right, of context. Everything from engineering data, operational data, live data, like all of this, we sit on. And I think one common misconception is that customers are looking to cut the software cost. I mean, it's not what I see at least. I mean, we are a tiny fraction of the cost of one of these customers, right? Their big cost in the P&L is the project, right? How do they make their project, their asset 1% more efficient. That could save them hundreds of millions, right? It's not about looking at the software spend. So I think we have a great position. The final thing I'll say, I'm super excited about AI. We're using it internally a lot, and Jay will talk about this a little bit later. We have around 2,500 developers, and it's frankly super exciting to see the productivity that we've started to gain here, I would say, really within the last year, it's dramatically improved. Not to reduce the headcount, that's important to say. We believe we can shift money from, let's say, maintenance, bug fixing, documentation, stuff like that into innovation to really dramatically improve our innovation, improve our competitiveness and ultimately, of course, change our growth trajectory. Okay. So sounds all good, hopefully, but how does this work in practice, you might ask. So let me show you a few examples of some real customers. The first one I want to talk about is one of the world's largest oil and gas producers located in the Middle East. This is one -- or actually the biggest deal we have ever won. We announced this in the third quarter last year. We say it's in the very high tens of millions. To give you -- maybe start with why did we win this? Well, this customer wanted to digitalize all of their assets, not one, right, all of them. And to give you an indication of the size, their biggest facility is the size of 50 Disneylands, right? So when you think of a plant, right, it's not -- it's a mini city, right? So big -- yes, big, big customer. And again, why did we win? Well, we were the only ones that could provide a connected system from A to C, which is what they wanted. Other than the revenue itself, why is this interesting? Well, because when one of these big owner operators standardizes on our technology, that sends ripple effects into the industry because EPCs, construction companies, suppliers, they get, let's say, very incentivized to get on our platform, right, if they want to work with these big owner operators. So it's a great win and a great story. The second example I'm going to show you is very different. We also work with Formula 1. We're a technology partner to the Visa Cash App Racing Bulls. And you might think, okay, you put a logo on a car, so what? That is not what we're doing. Well, we are doing that, but that's not the point of it. We are truly a technology partner to them. You might think of Formula 1 as a sport. To me, it is 11 technology companies competing, right? Every weekend, they test -- now every 2 weeks, they test the absolute limit of engineering, manufacturing and logistics. They go to 24 different cities. It's basically a lift and shift traveling circus, right? You can imagine the parts, the logistics, something breaks on Friday, it's analyzed, shipped, manufactured back on the track Saturday, right? It's a very impressive operation. And what do they use from us then? Well, they use our EAM, or asset management system to manage all the different parts and assets, and they use our quality management software in their quality process. So it's not just a sponsorship. It is truly a partnership. The last example I want to show you is our software on the biggest stage with the biggest crowds, right? At the 2025 presidential inauguration, our technology was deployed across 7 agencies, 11 operation centers around the district of Colombia, local police, federal agencies, military, all sharing real-time information in a single platform. Our customer here was the Washington's Office of Unified Communications. And they actually won something called the APCO Technology Award for this installation, which is, as far as I understand it, kind of the greatest honor you can get in public safety. And the cool thing about that is that another customer or potential customer, Arlington County, home to the Pentagon and the Reagan National Airport, they saw this installation and got very impressed. And now earlier -- well, say, late last year, they went live on the platform as well. So to me, that's an example of we win one, the neighbor, the region sees it and we expand that way. So I've shown you the life cycle. I've seen you what happens -- I've shown you what happens when context connects across it. You have seen it working in energy, in Formula 1 and in public safety. So now I want to show you some numbers. That's why you're really here, right? So let's do that. Because the deeper a customer goes into this life cycle, the more valuable, obviously, the data, the contact our platform becomes. And I think that's very clear when I show you the economics as well that this is not really a growth strategy. It's more a structural outcome of how we operate. So if we start with this one, if you look at this chart, this is our retention split by customer size. So you can see here the larger the customer, the higher the retention. So among our largest customers, the one over $1 million in ARR, we have a gross retention of 99% and that's a pretty impressive number, right? If you think about those kind of large enterprises, they have whole departments, procurement teams, their job is to find alternatives, right? Yet they stay every year. Why is that? Obviously, because we are critical to them. Even if you look at our smallest tier under 250,000, our retention is 92%, right? So the base is very stable and it is growing. If you look at our average ARR, recurring revenue, it's gone from $214,000 to $250,000 over the last few years. But the most interesting point on this slide is if you look at the difference between a customer who has 1 workflow versus 2 versus 3 or more, right? So if they're only in design or if they're in design and build and so on, you can see if they're in 1 workflow, the average ARR is $150,000. At 2 workflows, it's a little more than $500,000 and at 3 workflows, it's slightly over $2 million. That's a 15x multiplier. So the follow-up question I usually get from that is, okay, how many customers are on 1 versus 2 versus 3, right? And the answer to that is that 14% of our customers are on more than 1 workflow, 14. Those 14% represent almost half our ARR. So what's the conclusion from that? We have an 86% runway, right? We can get more percent of the customers adopting more workflow. We have a huge growth engine sitting in our installed base. That's the point I want to make. But we also, of course, want to have new customers. So let's look at that. What does that look like if you look at the front door. We won 400 new customers last year, so pretty decent number. What's also good is if you look at the average size of landing, if we look 2 years ago, that number was 71,000 for a new customer. Last year, it was 85,000. So we managed to sell bigger from the start. The other good news is that if we look at those customers 2 years ago, on average, they are 40% bigger today. So they land and they grow. So what does this mean to sum this up, this becomes harder and harder for anybody to displace every year, right? Switching costs increase, more workflows deployed and a larger ARR base to expand from. Okay. So why now you might ask, why is now the time for Octave to stand alone? Well, I would say everything I just showed you more or less was built inside Hexagon in siloed divisions. Now we're going to do this with one team, one P&L, one road map, all R&D focused on this life cycle. To me, the question is not whether the model works. The question is what will it produce when we focus and point everything in the same direction. So to summarize kind of the investment highlights for you guys, the market is large. It is growing, roughly a 10% CAGR. We have a very solid installed base with low churn. Our recurring revenue keeps expanding. It was roughly 58% 4 years ago. Today, 66% and Ben will talk later about what our target is for the next coming years. But yes, it is definitely higher than 66%, right, Ben? Good. And AI is not a threat. It's an amplifier. It expands our TAM. It's a good thing. And like I showed you, in our industries, we are the recognized market leader. And finally, like I said, I think the independence gives us focus and lets everybody unite under one mission and one goal. All right. So with that, I'm going to invite my team here on the stage soon. I'll start with Jay. But what these guys are going to do is basically lay out the proof for the vision and strategy that I've hopefully given you here. Jay is going to show you how this works inside the product, inside the platform. Then Tami will come up after the break and show you the go-to-market engine and more data on the sales. And finally, Ben will come and wrap this up into a financial model. So with that, thank you very much, and welcome, Jay.

Thank you, Mattias. How is everyone doing? Good. All right. As Mattias mentioned, my name is Jay Allardyce. I have the privilege of being the Chief Product Officer for Octave. I will go into the proof here shortly, but a bit of -- a little bit about myself as I've been now 7 months into Octave. It's been 25 years in technology, started as an SAP basis developer in HP and over the years, eventually became Vice President and Chief Operating Officer of HP Software, which is a $4 billion software portfolio, not so much undislike Octave with innovation and acquisitions and helped to transform that portfolio, which is a large contribution to HP at the time. Left that and went to GE. It was unrecruited. And it was partly because I got a spark doing some work in HP Labs about real-time energy management within data centers. How do you look at hot oil, cold [indiscernible] and the way things worked. So I said, where can I go learn? And this is all during the carbon credit days and trying to understand sustainability is our market there. And so I went to GE to understand the industrial landscape and helped to build one of the most successful businesses in power and water, specifically as their digital business and then had a short stint as the CMO and CPO of GE Digital before recruited to uptake. That's not on this list. But I say that as they have an intent to be acquired by Bosch. So big congratulations to that team. I further spent time at Alphabet in the Google Cloud division with a pure focus at either you're building infrastructure for AI, you're building AI native applications or you're helping companies reimagine their applications using AI. And then that leading solution engineering worked deeply with C3 AI and with [indiscernible] to go into vertical markets, very similar to some of the aspects of where Octave is today. Last but not least, smaller company, but I think it's relevant for this closure for myself is a company called GenAI Works. We realized during AI, this entire hype. It is about technology, but much more, it is about a cultural shift, a mindset shift. It is here to stay. So it's a mission-based company, helping people to discover, learn and grow through all things AI. That is our biggest opportunity. So you may ask why Octave? It's very simple in my mind, to make Octave a household name. You heard Mattias talk about exactly what we do for our customers, but more broadly for society. Everything you and I touch that we depend on, in many ways, sometimes take for granted, Octave has helped to power. And I think there's the greatest opportunity to bring the next generation of innovators and engineers first principles plus data to come and work in one of the coolest industries for decades to come. So you heard Mattias talk about this notion that we have a structural failure. Information is not flowing throughout a life cycle. The context is broken. I want to really make this very clear. This inflection point is not a marketing slide. This is a point right now of a market that is being reimagined. And I've seen these patterns, and I'm grateful to be a part of this. But to illustrate it, first up is this productivity evolution. Every company has bought technologies, SaaS solutions, what have you. These point solutions drive specific value, but they lack the context of how a business runs. That has forced every organization to take investment to become an IT organization to rethink how their workflows work. That's a challenge. Second to that is the demographic. Our parents, our grandparents, friends, colleagues, many who are in this great industry that we support are retiring. That tacit knowledge is walking out the door, that context is leaving us. And at the same time, we don't have as many people coming in. There's over 300,000 unfilled jobs just in construction alone. So how do we encourage this next generation to be data first and really working in an industry we care about? And last should be no surprise to anybody is AI. This is not a fad. This is not a this will to pass. This is foundational. We are absolutely creating a plateau in the market across all industries that we see that is going to allow companies to reimagine the way they work, not simply plug in yet another technology in their stack. So I want to paint this picture because we are in the great city of New York. And many of you came here by plane, trains, bus, automobile, maybe took a [indiscernible] scooter. I appreciate you are here listening to us and sharing this passion vision that we have. But I'm sure you passed across a lot of that infrastructure and took it for granted that it's just there, right? And you might think, in many ways, these are just disconnected assets or silos or systems as companies and that as how they work. But Mattias talked about the orchestration of how the city has a heartbeat, how NYPD is supporting us that is managing the safety for all of you and I to go from this event to get back home to our loved ones. So let's just dig a bit deeper to understand context-wise, how we think about this. First up are our builders. As you are designing these great assets, be it a building, a roadway, transportation, LNG plant, the mere fact, as Mattias said, we're going through a significant amount of design changes, and it's great to be able to do that upfront to avoid that cost variation that goes downstream. There's a tremendous amount of information going into this, and every change is cost. But the cost of getting this wrong, it is catastrophic. We sit here in a building on the second floor, which is 25 floors above us, knowing that it is safe, structural and secure. That's context. It's understanding something with grounding. As that design is finished, it goes into a much more complex phase. Every builder has to deal with materials, labor, time line, all things that are significant to their schedule, their cost and how they run. All those signals will have variations, but we don't want to have to spend time trying to assemble this project over project, but that complexity and that data continues and compounds. And third, it's much like taking the keys to a new house or an apartment. You have that digital twin, you have that design. You have all the information of how that was actually built. So from first day commissioning into perpetuity, you can run this with confidence. But their world is very different. It's situational, events happen. So you have to react, you have to manage. And last, but certainly not least, is how are we protect it. whether that is through surveillance, supported information, incidents, public safety. I can't hear it right now, but as I said, NYPD is using our capabilities to help keep us all safe. It keeps the heartbeat of the city running, and it can be any city globally. So the reality is this inflection point, in my view, is unlocking an entirely new market. If you think about these data silos in an enterprise, and we all do because we live in companies where it's hard to share information because you're in different departments. Think of the same way as an Octave city of how assets and systems and people and how they operate and how we can be far more efficient to redefine a life cycle of how to work. So you've seen this before. We're going to dive a lot deeper into this. Our portfolio. And it first starts with applications from the design, build, operate, protect, the continuity, the consistency of being able to take information all the way through this life cycle and enter it at any point and be able to have that consistency. Why this is unique and why Octave has a leading position is when you start with applications, you're embedded in the workflow that your customers care about. You're in the business that they run. Now the opportunity for us is building out the platform that is in support because that drives not only new context for existing customers, as Mattias talked about, but it also allows us to go after new customers. It allows us to rewire or rethink the way the business processes work. And that is the fundamental problem and opportunity we have with AI today. So we'll go into this here in a deeper view. But before I do, as a product leader, if I and our team from product and R&D are not sitting here thinking about who we serve daily, we should think about that twice. These are our heroes, our builders, our operators, and I'll call them our guardians, our public safety leaders. We have to think day in and day out of how we make their jobs and their lives easier, not how they become IT professionals. So first up, let's dive into the builders, EPCs. They live in a project life cycle time and time again. They're trying to optimize this. They're optimizing it for margin, project delivery and ensuring that they can manage this time and time again and bring that tacet knowledge for every project they do globally. I want to illustrate it with Fluor, a very large EPC, one of our customers that has worked globally across multiple programs and being able to manage multiple construction efforts. And how do they think about this in this life cycle from a design basis, construction through to sustaining engineering. But as you can see, they have some challenges. Every project is managed in a margin window, some greater, some less depending on the company. The backlog is important. If you think about this for an average EPC between $10 billion and $50 billion, if you add up every construction company out there, this equates to well over $1 trillion. There's one other great market right now that we all know that is over $1 trillion in backlog, somewhere around $1.4 billion, I believe, and that is AI. So the market is healthy. The backlog is there. Our customers are thriving. But more importantly, we're embedded to support them. So you bring this all together, I want to dig into a couple of areas you understand just how our solutions drive this impact. And I'll first start with detailed engineering design. This is our heritage. This is the bedrock of Octave. We invented this space. From 2D to 3D drawings, bringing all things that would make the structural integrity of the design of this building to be precise, accurate, standard code and doing it in a way that drives simplicity and more importantly, drives greater productivity and value for the engineers that all work to deliver that. So what's great through all this, it has a viewpoint of being the basis of the start of that digital twin and knowing how these capabilities and disciplines come together. And every one of our EPCs as we work with them, we're constantly trying to optimize how this can get better and better using AI, both in 3D rendering as well as geospatial analysis that all helps to the support of these capabilities going forward. Second up is materials management. We talk about this notion of time on tool. We want people to spend more time working on the project versus spending more time finding the material that they have. So 2 great things about this, one of which is the material management where it's right part, right labor, time to schedule, so you can optimize that cost, which is the biggest cost object for an EPC out there. The second is the referenceability. We manage a reference library that every EPC uses to manage their procurement, supplier, vendors, codes, information. It is an industry standard for which as well the industry adopts. So you can think about this as a very large and powerful way for us to manage the most costly input from supply shocks and variations, material densities, all these things that change that ultimately tie back into how a design might change. So we bring that together in true system of action. Mattias talked about system of records. But really when you think of what companies care about is, can I act upon something? Not that I archive it, but can I act on it and make it valuable for what I do today in support of my customers. That is engineering information management. It's category leadership in a way that brings together the efficacy of that design, the construction material to a true digital twin and constantly maintaining that so that you know what you've built, how you built and how it supports what it is that you've constructed. So to cement this, today, we manage over 90 billion engineering points, if you will, under management. That is significant just for this alone. But the beauty of this kind of allows us to then go into our next persona, and that's our facility owners or operators. And those operators, they'll take those keys. They'll take that digital twin and they have the clarity from the first start of a new building or a new power plant or a roadway into how they manage in perpetuity. So that information continues to compound and build. And if you thought about it before, you have this break in silos, you have handoffs, that is a tremendous amount of waste. We continue to be in the life cycle of how our builders operate and handing it off to the next great constituent, which are the operators. But their world is vastly different. They live in a world of constant change, information is flowing. They have to manage maintenance, quality, potentially cybersecurity. So for them, it's all about uptime, reliability, the availability of that asset, making sure they can manage it more efficiently and doing so in a way that supports their overall financial objective, whether they are a facility operator or a manufacturer. So let's dive into a couple of areas real quick. First up is the preventative maintenance, vitally critical because you know the cost of your asset and that is on the books. How do you manage that, maintain that, extend that life, knowing truly how things perform versus what was slapped on as an OEM spec for that piece of equipment. EAM is another system of action. And what is powerful here is we have companies across the globe, one of which many of us know, perhaps might know by the name, but what they provide, be that of [indiscernible]. And that's Kimberly-Clark. They've been around for a considerable amount of time driving an impact in the household name, but for them, not only managing their facilities that they grow as they manage, but they're also managing what they produce and also, more importantly, their brand. And we've seen such the biggest impact that as you go from enterprise asset management on through to other parts of the business, it may have a catastrophic impact of what you're delivering. But one thing I want to highlight here is the extent of how large the system of action is. We manage over 550 million work orders annually. So at the heartbeat of every owner-operator in their facility. But as I mentioned in terms of quality and compliance, this is not a nice afterthought. This is not something you should have. We all know that every sort of defect has a direct impact to the bottom line or as well as top line revenue. And we know for food and bev or regulated industries that anything that hits into the consumer market and has a recall may have a catastrophic impact to your brand. So this is a strategic asset that our facility owners and operators use and how they manage the delivery of their capabilities and goods to services into market. So last, but certainly not least, our guardians or public safety, so command and control centers. Living as well in a constancy of change. It is about having the right bit of information and the right incident at the right time, so you can identify, remediate and address. And this can be an individual, it could be an incident. It could be a misplaced piece of information, an object, what have you. How do you bring together monitoring and surveillance, crisis management and that coordinated response. The economics are clear, but there is no price for the loss of human life. We have to, as Octave, realize what we carry and what we have to support and the criticality of what we build for our customers has to be top-notch delivered in a way that they can go and support any one of us in the cities across the globe and how we manage our lives and the safety of those environments. So what I do want to highlight is our third system of action, Octave OnCall. As Mattias mentioned, NYPD is a customer and a user and a great feedback advocate to us for us to continue to make this better and better. But as we continue to roll this out, it's all about dispatchability. And you can think of this not only in a city like that of Rio de Janeiro with over 17 million citizens, but you can also think about cities such as for manufacturing. Very large manufacturers have their own ZIP code. So incident response is fundamental in terms of how they manage a plant, the safety, the material, who's on the yard, what environments that they are in, the applicability of this spans across our customer base. So this is really intelligence at scale. It is for the physical world. It's where intelligence is modeled, where it materializes, where it compounds and ultimately, where it becomes durable. So throughout this connected life cycle, this workflow, we have the ability to reimagine this. But what I'd like to do, though, is highlight the fact that across the customers I explained, whether it be Fluor, Kimberly-Clark, Rio de Janeiro, the entry points of where they work within any parts of our workflow can expand as they do and continue to grow with them. But there's one here that I'd like to pass it off on VGF to introduce our Chief Architect, Mladen Stojic to talk a little bit further about that. So Mladen?

Good morning. My name is Mladen Stojic. I've had the pleasure of being with several companies and now, of course, with Octave, working with Jay and the rest of the leadership team focused on taking ideas and ultimately igniting and delivering innovation across many of the solutions and industries that we operate in today. I'm going to build off the message, but specifically focus on one industry that nicely tells and articulates the story associated with integrating multiple workflows and ultimately delivering solutions in mission-critical environments, and that's rail. Rail networks are one of the key arteries, if you think of a body that connect society but also connect global economies. Over 1,500 rail networks around the world are responsible for transporting over 5 billion people and are also responsible for the transport of up to $9 trillion of goods annually. And as Octave, we enable agencies to design, operate and ultimately protect the people, the property and the assets that are participating within this life cycle. s2 Let's start with design. We have an uncanny ability to ingest multisource content, whether it's from satellites, whether it's from drones and ultimately produce AI-ready data that feeds downstream workflows, particularly those workflows associated with building complex rail networks and rail network models, storing necessary data to facilitate AI workflows downstream. Once we've designed a rail network, now we move to the operation workflow. Having these systems connected allows us to support the asset in the field through field inspection workflows, ultimately improving the performance of that given asset. Lastly, protection. Given the amount of people and the value of goods that are transported annually through these rail networks, we need surveillance and monitoring capabilities that allow us to detect and quickly respond when something happens, whether it's an incident or a threat along a rail network. And as Octave, we are the only company in the world that can not only connect to these systems, but also deliver one system of action. So think of it. Instead of having to go to three different vendors to get this solution, you go to one vendor and that vendor is Octave. Let's see it in action, and I'll kind of talk you through what you're looking at here. It starts with change. Agencies spend a lot of money collecting new content to reflect reality. And that content can come from a satellite, it could come through a drone that's flying and scanning that linear network. It could come from different real-time sensors. But ultimately, we have the ability to fuse all that multisource content and produce a real-time digital twin, not only of what has happened, but of what is happening, establishing a system that facilitates downstream workflows. Beyond that, we start connecting systems. We have an ability to connect the digital twin to the enterprise asset management system, offering a bidirectional information bridge that allows workers across different silos and across different departments to look at an asset and ultimately update that asset whether something has happened in the field. Surveillance and monitoring. We use video and LiDAR sensors to detect incidents or potential threats. Now other companies do that as well. But what makes Octave unique? Because we're connected to all these systems, we have the ability to not only connect to the digital twin, but also all that asset information stored within our enterprise asset management system. So you're not having to open and knock on different doors and different systems. With Octave, we connect all of this together. And what you're looking at here is our 3D and linear detection capabilities through the use of LiDAR technology. It's a new innovation. When coupled with AI, we have the ability to detect threats and incidents and immediately dispatch a response team, which is what you have here with OnCall. So with OnCall, we can take that incident, manage it, look at all of the resources close to that area where that incident has occurred and quickly route and dispatch a response team, taking into consideration traffic or any other information that may get in the way of getting to that response as quickly as possible. So once again, as Octave, we're not only building these capabilities, but we're connecting them through this life cycle intelligence for rail. I've just given you one example of rail, but it doesn't really stop there. The same model, the same idea of life cycle intelligence can be established and applied to roads, where city, county and various states have robust road infrastructure that needs to be modernized and maintained. They need design, build, operate and protect systems that work in concert and together. Airports and seaports also support our global economy through the transport of goods and people. These require not only asset management and design capabilities, but severe protection capabilities to protect the assets that are being managed in and out of different seaports. Moving beyond that to utility networks, whether they're utility electric, telecom or water. The distribution of power and all of these utilities is important to be designed, maintained and protected. These are long linear networks and through the use of new sensing technology, we could transform all that data into a digital twin that can be used in downstream workflows. So you can see a common need and a common thread across all these different markets. What makes Octave unique is the comprehensive life cycle intelligence capabilities that we have that not only design, build, operate and protect these capabilities that provide one system of action, and that's where Octave comes in. Thank you. Jay, I was looking at...

Good job. All right. Thanks, Mladen. So hopefully, that gives you all a bit of perspective of how our solutions come to life and how we support our customers. It's significant. It's impactful. It is supporting the way they work. So it's great to partner with Mladen and the entire product and R&D team. So I want to switch gears a little bit, okay, is really talking about this notion of scaling with context. This is our opportunity at Octave. So -- but first, there are three traps, if you will, that are kind of limiting why industry is not yet scaling. So let's talk through this. First is the CoPilot trap. I know everybody here probably uses some form of AI. I encourage it, keep doing it because it's muscle memory. You're having to build new skills. You're having to remove biases of how you've worked before because it is simply not a bolt-on. If you're doing work and then going to that and coming back, you're not integrating it into your workflow and how you run yourself day in and day out. And so forth, if you think of this this way, is that many organizations simply think, "Hey, yes, I've got an AI strategy. But if you not have the opportunity to fundamentally rewire or rethink how your business processes work, that is your rate limiter. The second is data silos. We talked about this. Now technically, there are ways to manage multiple disparate environments in a federated way to allow data to come about, but that context is absolutely essential. Why certain information interacts with other information? It's no different than how all of you might operate as a team of how you know how somebody works in marketing, sales, procurement, what have you. Once you build that institutional knowledge, you can execute. But oftentimes, the data is simply just data trapped in various environments. The last is essential. And this is the interface trap. Let's just put a parallel to this. We all went from web to mobile, and we saw how powerful that was to go from a much more complex interface to perhaps the 5, 6, 7, 8 capabilities that you need in a mobile phone to do what, the things that you need to. We are at 100x jump by this, an opportunity where you're actually being able to work with information that is a part of you, not something that was in a form or a database or a table that you just simply retrieve, being able to ask a first secondary or tertiary-based question on what it is you're trying to solve. So you fundamentally have to rethink the workflow. You have to rethink the process to apply AI for the effectiveness that it really does have. So where are we in this evolution as Octave? As Mattias talked about, our portfolio is extense. Yes, we've gone from bespoke applications to some data sharing. And where we are now is that digital thread, how are we connecting information across those workflows to create that life cycle, to create greater context to unlock new value. But I will submit today in the tomorrow, if you will, we are in this shift, a true context-driven platform for the physical world. So how do we think about that? It comes back to our customers, our builders, our operators, our guardians, our public safety leaders. And I talked to you about three different systems of action. As we look at this, it is really bringing two worlds of data together, precision engineering that has to be right to how something was designed, constructed because it's held to engineering standards, codes, regulatory bodies, all things that are commissioned for what, the safety and the efficacy of how something is constructed. Second is situational awareness. This is a one-to-end problem. Things happen. How do you manage information when a new bit of information comes in? What do you need? You need context. When you always talk to a team member, you always ask questions about something and say, yes, can you give you more context about that? Sounds familiar. This is what this is all about. But for us, at Octave, we're not starting from scratch. The data gravity is paramount. And I've seen the patterns throughout my career of whether you start with a platform or you start with applications, we are in the best position as Octave to deliver and unlock an entire new market. The data speaks to itself. So as we bring this together, we are in private preview right now with the Octave platform. So really, how do we scale this Life Cycle Intelligence across the pillars, across those workflows to have context and have value. So I'm going to walk through this a little bit. And first up, is a bit on the data governance and integration. So this is paramount. You can think of bespoke applications and you can go from data integration to an experience, but there's no reason to do that multiple times over. Having a hardened backbone of information that allows you to connect structured, semi-structured, unstructured data or in our world, IT and OT data, but doing that, that is role-based, secure to user needs such that, that data foundation is right. If we're not spending the time building this, fundamentally, it doesn't matter what else you have on top of the stack. Second is the context engine. This is where the intelligence comes in for us to support how do our graph-based technologies align across those various systems of action and how the life cycle actually works. But in addition to this, because of the Octave portfolio, we have great things that we can contribute. Mladen shared one with respect to geospatial and some of the rendering capabilities. How do these become consumable engines in support of applications that a customer might need, other ones such as scenario planning, modeling, dispatching, supplier reference, all things that are fundamental to what can be used to answer specific questions in a workflow. The third is really bringing the life cycle intelligence together across that value chain because that is where the work takes place, as we've talked about. But also then introducing Octave ERIDAA, a true multi-agent-based framework that allows for reasoning and knowledge across an entire life cycle. But I want to kind of paint a picture of how this works. As you think of it in a refinery, if an issue happens, do you send a single individual to go fix that issue? No. You send a team, specialist who understand codes, standards, chemicals, safety. That team works to solve a particular problem. No different in a multi-agent framework. That is true digital labor that has intent and understanding that allows for human-a-loop interactivity of how that life cycle might remediate a particular problem. So the power of this is complementary to the domain knowledge that we have within Octave and how we support our customers. The great thing of this, any cloud, any system, any model. We have to realize the value that we bring has to be in support of the application and the end use that our customers use and have to be able to run on these fabrics as they continue to evolve. And we partner deeply with many of these providers to help us scale and drive reach into the markets that we serve, which you'll hear Tamie talk a little bit about further later. But as I go into this, it is really about scaling AI to an autonomous life cycle intelligence. So we've been doing a lot of great work with Octave Assist. So over 2 million assist per day, the assistance of how more information that a user can dive into their specific application and interact with data, not in a form and a table, but in much more of a natural language interaction. The second of that is the embedded AI. We've invested heavily in this because in our world, people don't want to spend time switching screens left and right. You want to bring the intelligence, whether it's prescriptive, predictive or some sort of generative output that can support the way they work right there in the application. And doing so means more time to the focus, more time to doing the work you need to and less time managing different systems and different information sets. So we continue to invest deeply, which drives a greater moat and focus for our customers that are with us today an opportunity to differentiate the products that we have leading as well. So where does that go? The Octave platform, as I've talked about before, it's an opportunity for not only existing customers to continue to leverage what they have today, but extend this into new opportunities as well, which gets us into Octave ERIDAA, as I mentioned, in private preview as we go forward. But the beauty of this is allowing customers to do one fundamental thing, step out from how they operate their business today and ask a first principles question of how I would build this knowing I can attack this market tomorrow. Take an example. For those builders, they manage hours. They have a very large cost structure, how they manage those hours to deliver something into a given market. That cost structure might not work if they want to go down market to enter into something that is far more nimble and has a very different margin profile. This gives them an opportunity to access all that domain knowledge and context that they've had to think about a new market that they might enter. Very powerful. This is a complete game changer in the way that people work and how they interact in support of their business. So more on this as we go forward. All right. So Mattias talked about AI for our customers, a little bit about what we're doing. This is a very exciting area for myself, for Mladen, our entire product R&D team is how do you take AI and using this to build and ship products faster, but I want to point out two dimensions, right? One is from the concept to idea, how fast can you compress this? How do you get into a sprint-based mode where you can go from months to weeks to have production-ready code. And this constraint, if anything, is forcing everybody to become a builder within software as roles blend, job functions define and evolve. This is allowing us to bring new innovation even faster to the market and being able to work with customers far more quickly to get their feedback and input to say, will they be a consumer of it? The old ways are gone. Second of this is how do we actually deploy it across our software development life cycle from a build, QA test, production delivery and actually being able to look back at very large code bases that we've had for years and reimagine those AI-first. Extremely powerful for us as an organization. And more importantly, how do we use this innovation to reinvest into what we are building in the portfolio to drive new organic growth. But as you can see, we've been just moving ahead in a great way, shipping almost 4,000 features here in the last 12 months alone. So two other things I want to highlight as we scale with Octave. One significant input variable, as I talked about, is education. So we've been at the forefront to help our users who are using our software get better and evolve their jobs. And also at the same time, how do they upskill? How are they evolving in this world of AI? We simply can't provide the technology. We need to help them transform as well. And so one of the greatest opportunities for us is, as we said, is how do you encourage the next generation of innovators from high school, vocational, 2-year, 4-year college, anyone who wants an opportunity to get into what we believe is one of the coolest industries for decades to come. And second to this is Octave Collabs. We talk about people, process technology. We've talked a lot of the technology, but AI is fundamentally about how you reimagine a process and how do you retool your people. And so for us, it's an opportunity to partner with leading customers and helping them to think and rethink their business purely in an outcome-based, because the value of AI is not a tool. The value of AI is how can I apply it to the economics of how a business runs and how I can constantly optimize that in supporting them. At a great customer meeting this week, very large Canadian EPC, and we just started walking through. They were very advanced in terms of the data foundation. And it's wonderful to see, but you can see where they were stuck. And that is which use cases matter most, what ones will drive the greatest economic value. And then the harder question, how do I make them stick? Because the management of change, the behavioral change, it is the hardest thing that is in front of us, and it really means removing the recency bias that you've had of what you've learned. So it is so much of what you have to learn as it is what you have to unlearn. So we have a number of customers working with us as they're part of the platform in Octave AARIA on this journey, and we're excited to continue to partner with them this year. So let me bring it to close. Why do customers choose Octave? From really the Apollo launch to industrial AI, it's 3 things: Domain first, you have to understand the business. You have to understand how you operate in a given setting. Two, it's workflow essential, understanding the applications of how it's actually embedded in the way they work versus do you have an IT system that then they have to go configure and figure out how to work in their environment. And last but not least is context-driven. If you do not have this context that goes across an entire life cycle, that compounding effect stops, the breakage is there, the opportunity is missed. So customers have partnered with us for decades. And in so doing, we are grateful for their partnership and the continued partnership going forward as we help to transform one of the greatest market opportunities that I've seen in my career. So thank you, everyone, and we're going to now go to a break, and we'll come back afterwards, and we'll hear from Tamie, our Chief Revenue Officer; and Ben Maslen our CFO. So I think we have about 10 minutes. [Break]

Ladies and gentlemen, please welcome Chief Revenue Officer, Tamie Adams.

All right. Good morning, everybody. Welcome back from break. I'm Tamie Adams. I'm Chief Revenue Officer here at Octave. A little bit about me. I started my career in finance and moved into sales leadership positions at Oracle. I've spent the last 20 years in finance and in sales and looking at winning global sales organizations across the enterprise suite of software products at companies like Honeywell, Oracle, managing billion-dollar P&Ls, global sales organizations, which includes services, marketing and channel organizations. I've been part of 2 exits, specifically to [indiscernible] and most recently with [indiscernible] to Siemens. My focus as CRO has been really to emphasize around turnarounds, partnerships and hypergrowth organizations. I've seen a lot of go-to-market models. And what I found here as a business, they've earned the market position really the hard way, deep customer relationships built over decades. Industries where failure has real consequences to them. This is not something you build over years. This is something you truly build over time and over decades. And when I looked at this opportunity, I saw something that I've never seen before. And I wanted to share with you a little bit this morning and kind of how I look at it. Let me be really direct on kind of what I saw when I walked in the door. $1.6 billion in revenue, over $1 billion in ARR, 97% gross retention and new customers who land bigger and grow over time. This is not your typical enterprise software story. Most CROs like myself, walk into a situation where it is 100% turnaround, and I have to fix a lot of things. And to be honest with you, this product is differentiated. It's already differentiated in the marketplace. The vision that Mattias has laid out this morning is abundantly clear. The customer relationships really run deep here. And the sales organization that I actually inherited has decades of domain expertise in the industries that we already serve. My job is really not to reinvent this. My job is really to kind of focus and find the next level of opportunity and growth on top of a model that already exists. And the levers to do this are already in place in the existing business, and we just need to pull those levers a little bit harder. Let me show you who we're building for. We have a strong global reach. We're in over 140 different countries, Americas, EMEA and Asia Pacific. I spent the first couple of months, I've been here a little bit shorter than Jay. I've been here about 5 months now. And I really wanted to get to know our customers, walk on their plant floors, sitting in their control rooms, watching dispatchers route for emergency calls and services in real time and to really understand our sales motions and really what makes sense and really what's meaningful to our customer base. I came to understand quickly that the biggest opportunity in our business isn't just the geography, it's the depth. And while we are in 140 different countries today, we have -- we've captured only a fraction of what the market cap is offering us. So there's a lot more visibility and a lot more opportunity in this market. What strikes you immediately about our customer base is that the list is extremely deep. These are not software subscriptions where somebody could actually swap this over a weekend. We are inside engineering workflows. We are inside maintenance facilities. We are inside of emergency response infrastructure. In many cases, we have already been there for decades. These are not discretionary buyers. These are organizations for whom downtime revenue isn't a problem. It's really a safety problem. That's the environment our software operates in, and that's our -- why our retention looks the way it does. And what makes us different from any enterprise software company I've ever worked at to me this is a true opportunity. The best of these relationships that our sellers have, the criticality of what the software touches and the fact that we have barely scratched the surface and what we can sell into this is actually truly amazing. And so when you look at the workflow that Jay actually described and laid the foundation for us this morning, you can see the growth rates clearly. Build is our fastest-growing workflow, up over 20% year-over-year. 3 years ago, it was $67 million business. Today, it's $113 million. The growth is actually coming from construction efficiency, SaaS adoption and new demand alternatives and energy. Design is our most mature market, still growing, though at a slower pace, it's really being impacted by some macro headwinds that we're seeing with major project slowdown. However, it is still growing. Operate is our second largest workflow, and it is accelerating over 10% year-over-year growth at $362 million. This is where our most mature SaaS products live and it's where our margin profile actually is the strongest. Build & Operate are mostly reoccurring revenue ARR for us today. And as the mix shifts towards that, we will gain better visibility into the business and insights. Now as a CRO, I focus on a lot of things. But this is a few key areas that I focus on the day-in and day-out. We want to be able to continue to retain and protect our customer base. We want to be able to up-sell to that customer base. We want to be able to cross-sell. So think about the product and portfolio that we have today, it's extremely rich. And as we acquire new companies through M&A, we'll want to bring them in quickly from a cross-sell motion perspective. And most importantly, we want to be able to land new logos because we want to be able to put them into the cycle to put them back into retain, up-sell and cross-sell. So let's break it down a little bit. Mattias actually showed you the growth model this morning. My job is going to be to show you how we're doing to accelerate each lever. This model as it sits today, drives about 8% ARR. 97% gross retention means the base does not erode. Our current NRR is at 105% and is the opportunity to get us to 108% through continued pricing discipline and enterprise expansion. 86% of our customers are on a single workflow, which means the cross-sell runway is enormous. And roughly 1/3 of our growth comes from net new, which means we're adding on top of an already solid base. What changes under Octave is the rigor, the commercial discipline, the data-driven account planning and each one of those levers is moving. My job is to make sure that they're all moving in the same direction at the same time, the same discipline. And let me show you how. We're going to start with up-sell. We are rolling out a global deal desk with greater rigor, removing money that was previously left on the table, creating consistency, making it easier for forecasting abilities, transparent anchors for discounting, discipline at annual price increases and AI insight tools for the sellers so they can identify where we truly can expand. As customers grow, we tend to move from a seat-based pricing model to an enterprise-wide license agreement. The result is 186, $1 million tier customers, up from 142, 3 years ago. That now represents 51% of our total ARR, and that tier is growing double digits last year alone. The customer base is also moving upmarket. Every group is growing, and we should see more as this global deal desk that we've turned to roll out is implemented and start to take hold during 2026. Now here's what the pricing discipline is actually producing. $296 million in SaaS revenue. That is up 17% year-over-year. Our customers choose SaaS because it delivers faster time to value and better commercial structures in the way they buy. We are also seeing pockets of small customers who have been on perpetual-based licensing for a period of time choosing to move over to SaaS-based models, and it's on their own time line. We acknowledge we are not pushing them, but it's because the SaaS model actually drives more value. Every tier is growing. The largest accounts are growing fast and the $1 million-plus tier grew over 40% in just 1 year alone. Our business is really focused on large complex customers. The foundation of everything is retention, and ours is exceptional, not by accident. At the $1 million-plus tier, we have 99% logo retention. At the $500,000 tier, we have 98%. These are not numbers you get by having a good product. You get these numbers by being embedded in the actual business unit itself. Let's think about what the customers actually do. They manage thousands of engineering changes. They handled millions of emergency phone calls. They run physical assets where the cost of failure is measured not by revenue and in dollars, but by safety and security. When you're deep in the customer operations and when your data model knows our asset class, our asset history and their workflow exceptions and their regulatory requirements, switching software isn't a decision. It's an operational risk that no operator actually wants to take. And the relationship with our customers is deepening at every level, including the sales organization. These customers are now asking us to help them build AI applications for a system of record, very similar to kind of what you saw Jay described earlier. That is a new commercial model for [indiscernible] on top of an already sticky base. The $1 million tier is also growing in our share of business from 48% in ARR in 2022 to 51% today. Our most valuable customers are getting more valuable, and that's the foundation that we're actually building on. So let me show you what this looks like in practice. Customer example. This is a global German chemical company, 160-year plus strong history and has been with us for many years. This customer story is about kind of the adoption of our solutions and how they grew into a multi-pillar workflow. When they first came to us, they were on a single design workflow, but over the years, they've expanded into Build, then Operate and recently added OnCall solution from the product pillar portfolio. That progression from a workflow to 4 is exactly a land-and-expand strategy that we're looking to build at scale. The most recent OnCall win really kind of strengthen our position in the industrial public safety market, expands our footprint in mission-critical areas and infrastructure and demonstrates that Octave is uniquely positioned to deliver next-generation fully integrated CAD and communication solutions. And their ARR reflects it from the initial landing of a small opportunity to over $3 million in ARR annually today. Now let's talk about cross-sell. And this is where I see the single most largest untapped opportunity in the business. Let me give you the economic architecture because this piece is really important. A customer on one workflow averages $147,000 annually in spend. Move them to two workflows, they're worth 3.4x that. You move them to more than 3 to 4 workflows, it's 15x. And at that depth, retention is exceptional. Now look where we're at. 86% of our customers represent 51% of ARR are on a single workflow, and 60% of our larger customers are already on multiple. That's not a problem. That's an opportunity. That's the road map to revenue. And actually, that's why I'm here at Octave. Another customer that speaks to our cross-sell strategy within a single workflow pillar because that's an opportunity for expansion as well. This is a brand-new logo that we just secured in the last several weeks. It's a Fortune 500 company, a global leader in motion and control technologies. They were interested in EAM, which is our Enterprise Asset Management solution. And through the solution discovery and value-based messaging, we determined that the cross-selling motion of ETQ, our Quality Management Solution was actually going to be needed to kind of help resolve their business needs. The sales motion was entirely based upon value. The deal grew from $200,000 with one solution to over $1.1 million with the second. They are now live with 120 sites with over 600 users. And here's the commercial system we're building to capture that conversion market. First, we're going to focus on target account list, data-driven scoring on every account by workflow and readiness. Second, we're looking at value-based sales methodologies. We're not leading with feature functions. We're leading with business outcomes. Just as an example, what does the design error cost when it reaches construction? What is the operational cost of unplanned outages? These are conversations that are door openers. When you show up with a product-only demo, it doesn't win. Third, the platform integration is a commercial accelerant. These are new releases that make workflows more connected. So as Jay and team expand our workflow portfolio, it will continue to be more and more connected, which means the value of a second or third workflow for every year we grow, we'll continue to invest in that platform. We know the economics of this actually work. 15x at 3x the workflow, we're now building this machine to get more customers faster. This is a systematic approach to go-to-market, and it's one we firmly believe in. Now let's look at the fourth lever, land and expand. About 1/3 of our ARR growth comes from net new customers, and we have significant room in that given that we have a strong landing motion across all 4 workflow pillars. There's three vectors. The first is geographic expansion. As I mentioned, we're in 140 different countries and our presence also but our penetration in the Middle East, Latin America and high-growth APAC areas are relatively small to a given opportunity, and we see tremendous areas of opportunity to expand in those three regions. Channel. We have over 1,500 reseller marketplace presence with AWS and Azure. Our indirect channel is roughly about 10% of our business today. And that honestly is a little underweight for a company and scale of Octave. I see a lot of room to grow in this area. And at a minimum, we should be double in the channel market. We are building infrastructure for a channel business that will scale, Partner Portal, Octave University for enablement and marketplace presence globally. The foundation is being laid now. Verticals are third. When you look at data centers, defense, pharmaceuticals, nuclear, food and beverage, we have a strong foundation in these verticals. However, there is plenty of room to grow in each one of these as we look at the TAM overall. The customer example is all around land and expand at scale. This is a global technology infrastructure company, manages highly secure, reliable and scalable cloud systems and infrastructure with over 900 sites worldwide. You can probably guess who it is. They started with our EAM solution with 350 data centers for enterprise asset management for around $1 million with over 10,000 users. They expanded into the Building Information Modeling Systems for a total of $9 million in ARR annually. Land and expand is really critical to our go-to-market strategy overall. One of the core changes that we're making in how we drive is the commercial engine. Under Octave, we are going to consolidate to one system, one pipeline, one process, deal desk global-wide as well as revenue operations. Value-based pricing is now the standard. Published pricing, standardized volume discounts, enterprise-wide license agreement and discipline around renewal increases as well. No more ad hoc deals with undervalued platform with the platform delivers. Every point of discount that we provide does count towards our growth. Customer success is now our revenue engine, not a support function any longer. Today, they are in over 700 accounts, which is roughly 90% of our ARR. Customer success is also driving proactive expansion, up-sell opportunities, migration opportunities as well as contributing to our overall pipeline, and channel growth is a vector, not an afterthought. We are laying a strong foundation, as I mentioned previously. Let me leave you with really kind of four things. First, the customer base is our foundation, large, complex customers with decade-long relationships. We are embedded in how they operate, and that does not erode. Second, the largest customers are getting larger. NRR is at 105% today, and we can get to 108% through continued pricing discipline, enterprise on the enterprise tier expansion opportunities and the cross-sell motions that we are building systematically. SaaS growth today is at 17% and accelerating. Third, 86% of our customers are on a single workflow and is the largest single growth opportunity in this business. The economics are proven. Three workflows mean 15x of the value. The motion is now systematic. This is not a theoretical white space. This is identified, quantified, data-driven opportunity where we're executing against that. And the fourth is 8% ARR growth. That is the floor. That is not the ceiling. We are here to fine-tune it with the commercial discipline and the unified operating model and our go-to-market rigor that will turn 8% into 10% plus. This is really a great business, and we're building the team and the systems to be able to help us get us there. And with that, I'm going to turn it over to Ben.

Thank you, Tamie. Good morning, everyone. I'm Ben Maslin, CFO of Octave. Prior to this, I've been the Head of Strategy for Hexagon for over 8 years, responsible for strategic projects, M&A and Investor Relations. This means I've been, like Matthias, heavily involved in building the business that we're here today to present to you as well as working on what's been a very long and extensive separation project. Prior to Hexagon, I was an equity analyst with Morgan Stanley and Bank of America, and I trained as a Chartered Accountant with PwC. So very excited to be here and involved in the next chapter of Octave's development. I'm going to focus on the financial profile of Octave, including how we got here, recent financial performance and our strategy for future value creation. So some of you will have followed Hexagon for a long time, and you will know the Octave business and assets well. For others, this will all be fairly new. So here, what we have is a brief recap on how the business has changed under Hexagon's ownership and what that means for Octave's financial outlook going forward. So when Hexagon acquired [indiscernible] in 2010, you had the state that is on the left-hand side of this chart. The business was focused primarily on design tools. It had a customer base that was heavily weighted to oil and gas and EPCs with a focus on large project activity, and it generated around 40% of its revenues from services. Since then, under Matthias' leadership, we've invested to grow and protect this core business and at the same time, develop and strengthen the platform to set it up better for the future. We've increased the focus on owner operators and the entire asset life cycle where the business is more predictable and sticky. We've diversified the end market exposure into new verticals. We've increased the addressable market size, and we've moved the revenue mix away from services towards software, SaaS and recurring revenue. So as we start life as an independent company, Octave has a much stronger financial profile to build upon. Now Matthias has talked about the rationale for the separation already, but it's worth underlining again how being independent will impact the financial outlook for Octave. Hexagon remains a great success story, and we're very proud to have been part of that journey. But as an independent company, Octave will have the autonomy to focus on its own strategic priorities with greater management attention. More specifically, we'll be able to more tightly integrate Octave's platform and businesses together to drive greater revenue and cost synergies. And Mattias and Tammy have already given some customer examples to show how that is already taking effect. Being independent will also allow us to accelerate the shift of the business towards subscription and also attract and retain a stronger pool of talent. And finally, Octave will have its own independent capital allocation strategy to reinvest and drive the business forward in a more focused way. And we believe this greater focus will allow us to deliver improved financial performance at Octave going forward in terms of growth, profitability and cash generation. Having talked a bit about how we got here, we now have a few slides which recap recent financial performance. Here, we can see the consistent strong growth in Subscription revenue that Octave has delivered since 2022 as well as the increasing share of subscription revenues, which reached 2/3 of the total last year. Now we've increased the focus on driving Subscription revenue and ARR harder and in the last year, have changed the incentivization of the sales teams to focus more on SaaS bookings. Now this shift from perpetual to SaaS obviously has a near-term drag on overall growth. You lose the upfront revenue from that initial perpetual license, and it takes a few years for the stack up of Subscription revenue to offset that, and this partly explains the lower growth we've seen over the last year or so in Non-subscription revenues. We've also seen a decline in overall Service revenues over the last 2 years. And this has been driven by both the disposal of the Federal service business that we did last year, which had around GBP 90 million of revenues overall and the deliberate decision to exit some business lines, which are now part of the Octave perimeter that were previously reported in other Hexagon divisions. And as you can see, this revenue mix shift accelerated in 2025 as we started to actively prepare from the separation for Hexagon to set Octave business up better for the future. This divergent growth trend can be seen in more detail on a quarterly basis, with the decline in perpetual licenses and services being the main driver of the slowdown in organic growth that we saw over the last few quarters. Against this, we've seen a continuation of the strong and consistent growth in Subscription revenue over the same period. And this positive trend in Subscription revenues has been underpinned by a record level of SaaS bookings in 2025, which also provides a good starting point for us as we go into 2026. Here, we break out the different constituent parts of our Subscription revenue stream, split between SaaS revenues, maintenance and subscription licenses, which we also break out in more detail on the right-hand side of the slide, so you can see the trend. Subscription licenses are contracts where the customers are able to flex up and down their consumption of our software tools on a monthly basis, depending on the number of large construction projects that they're actively working on. And as you can see from the slide, although overall Subscription growth for the group was strong last year, we did see a slowdown in growth from the Subscription License revenue stream throughout 2025. And this reflected uncertainties in the global economy, which fed into a lower level of customer project activity and software consumption for us. Now this dynamic is expected to remain a slight headwind to growth as we go through the first half of 2026. However, we do see a sequential stabilization in license usage, and we expect renewed growth later in the year as comparatives get easier. Turning to profitability. One feature of the last few years has been a steady increase in gross margins, which reached 75% in 2025. And there have been a few drivers of this, including the gradual exit of low-margin Service business that I described earlier to focus our business on higher-margin software. This has dragged on growth, as we've seen, but has structurally improved the margin profile of the group going forward. We also show here our non-GAAP adjusted income from operations. And here, you can see we showed good improvement in profitability in both 2023 and 2024, illustrating that the improvement in the gross margin that you see does drop through to the bottom line, and it gives us confidence in the underlying margin trend for Octave going forward. Now this upward trend paused last year, which reflected two things. Firstly, we had a slowdown in overall revenue growth, which partly reflects that shifting revenue mix that I talked about. This obviously weighs on profitability in the short run, but it sets Octave up better for the future. At the same time, we started adding in the additional costs we needed to, to make Octave an independent company, such as additional legal, tax, marketing, investor relations and listing costs as well as company and product re-branding, like you can see around you in the foyer, which is significant cost to bear in the short run. So this impacted profitability last year. It's also relevant for 2026, as I'll come on to in a moment. But it's important to remember as a takeaway from this slide that the underlying margin trend is a positive one, which we're confident will reassert itself once Octave is set up as an independent company. We see a similar trend here in terms of free cash flow, which has consistently delivered margins over 20%, supported by solid recurring revenue growth, an asset-light business model and negative working capital. So in this slide, we bridge free cash flow to adjusted income from operations. And in it, you can see the positive impact R&D capitalization has on our non-GAAP profitability. So this obviously creates higher reported profitability levels. So as a management team, we look at the margin development, excluding this benefit of capitalization because we feel it's a better proxy for underlying cash flow. Looking ahead, as we move more of our product suite to SaaS and a pattern of continuous development and release, we expect to steadily decrease our levels of capitalized R&D. This change in development approach will be a drag on adjusted income from operations. But of course, it's going to have no impact on free cash flow margins, which we expect to consistently increase going forward. So as we begin our journey as an independent company, we feel we have a very strong starting point for future growth. We have growing Subscription revenues, which accounted for 2/3 of the revenue base last year. We have a balanced exposure across our Design, Build, Operate and Protect platform pillars, which as Mattias and Tamie have already described, offer great scope for increased cross-selling. And we have a balanced global footprint, which is not too dependent on the outlook of any one specific region, and it gives us the scope to focus our investments on those geographies that are growing more quickly. We also have a diversified end market exposure now, clearly shown here by the 2025 breakdown by end customer, which shows a strong presence in almost all asset-intensive industries. This comprehensive footprint brings Octave, three financial benefits. Firstly, we have a focus on mission-critical industries, which are sticky and bring a large installed base for up-sell and cross-sell, which will help drive growth. Secondly, we have a balanced exposure, not overly dependent on any one particular geography or segment, which over time will reduce cyclicality. And thirdly, we have a diversified and strong customer base in terms of type and size, which also brings financial stability. So if you like, that was the retrospective and setting out the starting point for Octave. Now we move on to our strategy for value creation over the next few years. And as a management team, we see five key pillars to drive value for our stakeholders. Firstly, we need to protect and grow our share of a large, healthy and growing end market. Secondly, to drive the shift to ARR and subscription revenue and accelerate our ARR growth rate from the 8% we've seen historically. Thirdly, once we fully separated from Hexagon, we will balance the investments we need to make with cost discipline to drive a resumption in our upward margin trend. Fourthly, as an independent company, we can take full ownership of and bring greater focus to improve our cash flow generation. And finally, we can bring disciplined capital allocation to make sure we invest that strong cash flow to maximize shareholder value. So if we start with growth, as Mattias said, we believe we're well positioned in growing markets that have strong secular external tailwinds. An overall SAM of $28 billion, growing at around 10%. And Mattias, Tamie and Jay have been through these individual growth drivers in detail already, so I won't dwell on them. We'd like to note that these medium-term growth rates reflected in the SAM, obviously don't reflect short-term cyclical dynamics or geopolitics, which can drag on growth in 1 year and boost it the year after, and they don't really reflect the impact of transitioning a perpetual software business to subscription. But over time, this is a market growth rate we believe in, and we think we're already progressing towards, especially in terms of our recurring revenue. And we think being an independent company will set us up better to capture this growth going forward. Mattias and Tammy have talked about how we aim to increase our ARR growth rate from 8%, which we've done over the last 3 years to sustainably over 10% over the medium term. And here, I provide on a slide an overview of that plan. And by medium term, I mean the next 4 to 5 years. Overall, we still see great opportunity for expansion within our existing customer base, particularly by driving adoption of more products across the design, build, operate and protect pillars. And going forward, we expect that to drive around 2/3 of our ARR growth. Gross retention is already very high, so we aim to maintain that and move more customers to the large customer category that Mattias described, which is where our relationships are even more sticky. Next, as Tammy laid out, we think a more focused approach on cross-sell and upsell, including [ Jay's ] new AI-driven applications, plus a better execution around pricing that can increase our net retention by a few hundred basis points from the 105% that we've delivered historically. New customer wins remain a big focus, too. And as Tammy has laid out, we see scope to increase our win rate by investing in new growth areas, by expanding the partner channel to increase our overall coverage in terms of both geography and customer segment. And finally, we'll use bolt-on M&A to add new technology and channel capability where appropriate to support our growth objectives. So overall, there's not one big thing that drives us to consistent ARR growth of 10% plus. It's rather a combination of a number of smaller drivers, which will all contribute and will compound over time. In terms of revenue mix, we expect the transition to subscription revenue to continue over the next few years. And as we show on the slide, over the medium term, we expect this to increase to around 75% of overall revenues. Within the business mix, we expect perpetual license revenue to decline as a percentage of the total by around half, as we transition new and existing customers to SaaS versions of the product. Not all customers will transition. Some geographies and customer groups like nuclear, or emergency services may still prefer to buy perpetual licenses or remain on-premise. So we don't expect this to be a dramatic effect, more of a slight drag on profitability and growth over the next few years as perpetual software revenue becomes a less significant part of our mix. We also see some opportunity to transition perpetual maintenance revenues to SaaS, but I also expect this to be fairly gradual and an effect that will build up over time as we develop and release new SaaS variants of our products with comparable feature parity. Overall, we expect SaaS revenues to be over 30% of our revenues by the end of the decade. This continued mix shift will help make the business more predictable. We think it will accelerate growth and provide a much stronger base for us to improve profitability and cash generation going forward. Moving on to 2026. Here, we provide a high level of framework for what we expect this year. We're going to give more detailed financial guidance for 2026 with our second quarter results in August, but this would help probably understand some of the moving parts until that point. In terms of revenue growth, there is obviously more uncertainty than normal in the economic backdrop at present. But we have good visibility on 2/3 of our business, which is recurring. We also have -- we'll continue to incentivize SaaS bookings over perpetual where possible, which, as I've said, will have a slight drag on the overall growth rate. So all this feeds into our current expectation of 3% to 4% organic growth for 2026 as a whole, which I've said earlier will be slightly back-end weighted given our subscription licenses will face more difficult comparatives in the first part of the year. In terms of profitability, we expect 2026 to be a transitional year. And as we said with the Q4 Hexagon results, we expect to see a similar profitability trend this year to what we saw last year with the revenue mix shift and additional costs needed to set up and launch Optiv as a separate company likely to drag on profitability in the near term. The cost saving program announced by Hexagon in Q3 will offset some of this. But overall, we expect a small net drag on profitability up until the point of separation. However, as I've said, once the spin is completed and the cost base is fully stood up, we expect the upward trend in margins to continue. And our confidence in, and our commitment to the upward trend in margins, is summarized on this slide, where we break out the different tailwinds and headwinds we see to margins beyond 2026. In terms of gross margins, we still expect a gradual improvement with internal efficiencies offsetting the drag we expect from having lower perpetual software sales going forward. Across sales and marketing and G&A, we expect cost synergies from more tightly integrating the Octave business, and a normalization of some of the launch costs we've had this year to become tailwinds to profitability in 2027 and beyond. In terms of research and development, as Jay has described, we think greater adoption of AI tools can bring much greater productivity to our development organization. However, giving the market opportunity of combining AI with our software tools to drive a bigger TAM, we're in the near term focused on reinvesting those savings into the product development and into accelerating organic growth. So in terms of overall R&D costs, we expect gross spending as a percentage of revenues to remain at a similar level that we have today at around 19% of revenues. But we will capitalize less going forward, as I've said, as we move more of our products to SaaS and continuous release cycles. And this change will drag on the reported profitability, but have no change to underlying cash flow generation. So overall, for 2027 and beyond, and if we exclude the change to capitalization, we plan to drive the business to deliver 50 to 100 basis points of underlying profitability improvement annually. And we know that this is one of the KPIs that will feed into managed remuneration going forward. Building on that, I'll now connect those drivers to our framework for 2026. as well as our medium-term objectives using our '25 actual numbers from the Form 10 as the reference point. So looking at 2026, which I discussed previously, we do see this as a transition year to really set the foundation for our future as an independent company. We expect 3% to 4% organic growth overall, driven by ARR growth of 6% to 8%, and a slight decline in adjusted operating margins. Beyond 2026, we expect greater upsell and cross-sell to drive a steady acceleration in our ARR growth, which we aim to consistently reach over 10% in the medium term. This acceleration plus the ongoing shift in the revenue mix, i.e., moving to 75% subscription revenue, will drive an acceleration in Octave's overall organic growth rate. In terms of profitability, as I said, we expect to consistently improve beyond 2026. This isn't obvious here in our medium-term projection for Octave's adjusted operating margin, which is expected to remain at around 30% level. But you have to remember, this will face the drag of a lower level of R&D capitalization going forward. So if we bridge down to free cash flow, you can see this effect clearly with a lower level of capitalization going forward and ongoing low levels of tangible CapEx, supporting an upward trend in free cash flow margins of between 50 and 100 basis points annually. I'd also here like to highlight our estimated framework for stock-based compensation. This is still being finalized by the Board, but we expect it to increase over the medium term from the current 1% of revenues within the Hexagon framework to around 4% of revenues in the medium term. And we believe this is a very competitive level compared to other software names that you may look at. If we move on to the balance sheet. Here, we show the target level of financial leverage we expect Octave to begin life as an independent company. We expect that at the completion of the distribution, Octave and Hexagon will have similar levels of financial leverage of below 1x. And in absolute terms, we expect Octave to start with net debt of around USD 450 million, with an undrawn revolving credit facility on top of that available for an additional $500 million of capacity. And this is subject to the debt raise process that we're going through at the moment, but is on track. This strong balance sheet will give Octave the capacity to make the investments we need to drive growth forward, both organically and in terms of M&A. And it will also give flexibility for Octave's Board of Directors to evaluate returning capital to shareholders, including introducing a potential share buyback program after separation to offset the dilution from stock-based comp. And this is something the Board will review and come back on in due course. In terms of potential M&A, as you know, Octave has a strong history of accretive bolt-on acquisitions. And we show on the left-hand side of this slide some of the businesses that we've acquired over the last few years, which have both enhanced our technology leadership and provided opportunities for cross-sell into our customer base. So for example, [indiscernible] was a recent bolt-on we did to allow our [ European Protect ] customers to more easily integrate mobile, social media, video data, and lots of other things into their control rooms to have better situational awareness. [indiscernible] is a provider of APM software, which is very easy for us to integrate and cross-sell into our enterprise asset management software customer base. And [ J5 ] was a provider of digital operation management tools, which helps automate shift handovers, incident management and safety procedures in very large industrial facilities. Again, very easy for us to integrate and sell down our channel. Going forward, we'll be disciplined. We will assess potential acquisitions against alternatives, including developing a product ourselves and other potential uses of cash, including share buybacks, and we'll naturally focus on the most synergistic opportunities we see across the group. So to conclude, we feel Octave as an independent company has a very exciting future from a financial perspective. We have a large and growing end market and customers that value our partnership, and that will help underpin our growth trajectory going forward. We have multiple levers to pull internally to drive our ARR growth from a historical 8% annual to over 10% sustainably. We have margin tailwinds that will reassert themselves after we separate and feed into improving medium-term profitability and cash flow generation. And we'll be disciplined in terms of capital allocation to both drive growth and deliver an attractive ROI for our shareholders. So with that, thank you very much for your attention and your time, and I hand back to Mattias for some closing remarks.

Right. All right. Thank you very much, Ben. Thank you to also to [ Tami ] and [ Jay ] and [ Laden ]. I think you all hopefully agree with me that we have assembled a very strong team. I'm very proud of the management team. Normally, in this kind of investor presentations, you don't talk too much about the team, but I wanted to spend a few minutes here at the end to do that. Then I'll wrap up. I'll promise you've heard a lot of Power Point here. But like I said, I'm very proud of the team we have assembled. Some of these people, as you've heard today, have come from much larger companies. Some of them have been here 15, 20 years and chose to stay. Some of them have come from Hexagon. So yes, super proud of the team. I think it's quite rare, the team we put together. But frankly, much more important than me and those guys is all the people behind that, right? We have roughly 7,200 people around the world, and it's hard to describe, but they are super, super talented. We have among the lowest attrition in the software industry. At the same time, we have among the highest engagement scores. And I say this every time that is our most important asset is the people. So I wanted to take 30 seconds here because I know probably a lot of them are watching this online to say thank you to the team. You are the guys who make this possible and deliver it to our customers in this mission-critical industry. So thank you to the team. All right. Thanks. Four things I've told you today, or we've told you today. We told you that it's a structural flaw in these industries, and it's an opportunity that is enormous. We've described to you how we have the platform to deliver the context that we believe is unique in this market. We've also told you about how we think the independence we will have as Octave on a stand-alone basis will align all the forces behind. And I think we've proven, at least in my opinion, that the economics are already visible. We want to improve them. We're not done, but we do think the ground, say, signals are there. So you may or may not feel that you've heard 4 presentations here today. I would argue that you've really heard one. I talked about the industry and the structural advantage. Jay showed you the portfolio, the platform, how this all connects. [ Tami ] showed you the proof in terms of the numbers, how we land and expand more and more customers. And finally, Ben gave you an accounting lesson here at the end, right? So if you think how these things connect, right, the context deepens the platform. The platform enables the go-to-market. The go-to-market generates the financial results, and the financial results allows us to invest some of that money back into the platform and the go-to-market. So this is not a cycle that slows down, it accelerates. That is truly one compounding system. So this morning, I told you that the industrial world is not short on software. It is short on results. And in order to get results, you need intelligence. You saw the platform how we connect throughout the design, build, operate and protect. I would argue you saw that proven. You saw it in different industries, the world's largest energy facilities in Formula 1, presidential inauguration, in rail with the hyperscalers and many, many more examples. So I would argue that you saw it proven at scale. And that ladies and gentlemen, is what we are all about here at Octave, intelligence at scale. Our first day of trading here on the NASDAQ in the U.S. will be May 28. We'll start a few days earlier in Sweden on May 25. And I hope that many of you will join us on this journey as shareholders and owners of this super exciting company. So with that, I'll say thank you very much, and we'll do a Q&A session here in a minute. Thank you.

My name is Matt [ Hedberg ] from RBC. Really exciting presentation and opportunity here. It feels like there's a lot of long-term drivers, especially to drive the business to kind of that 10% growth with expanding margins. I wanted to focus on AI. A lot of us in the audience, that's the question that we get time and time again. And it feels like there's a real compelling value play for you guys to monetize AI. So I guess a 2-part question for [ Tammy ] and Jay. I guess, from [ Tami ], from your perspective, how do you expect to monetize AI in the future? Is it from selling additional features? Is there a consumption element? Some element of that? And then for Jay, you guys sit on a ton of data I'm wondering, is there a network effect where the community data benefits the entire sales models? Or is it still contained more or less on a company-specific basis where their data is used for their models? Or is there more of like a network effect from an AI perspective?

So do you want to start with the?

You guys go?

Yes. Do you want to start? Okay. Well I'll start with the [indiscernible] pricing. So I think we need to kind of look at and determine really kind of what the data elements are that we can actually monetize, right? So I think that's part of where Jay and I are going to be working together. But we do start with everything from a per seat pricing model today, even at our lower tiers, and we graduated to enterprise license agreements. So assuming it's going to follow the same model in that regard, especially for potentially some super users, and then we'll be potentially looking at maybe more of a consumption-based model based upon the quality of kind of what we are looking to achieve with that data set.

Yes. So building on [ Tammy's ] point, it's really on the pricing side, it starts with the value-based pricing. So if we can be clear on the outcomes that we can deliver for a customer. So if you're improving some sort of KPI by a certain percentage, it's a clear demonstration back to where we think we can charge. So how do we add that to the pricing levers we have today, so kind of a plus one. To your question on the network effect, so yes, smiled a bit because there's a tremendous opportunity. But first and foremost, customers own their data. And two, there's contention as to do they want to contribute to model development and evolution. But you can think of economies of scale. And if you think of supply chain, it's probably one of the most opportunistic areas where every construction builder is procuring. You have supply shocks, you have impacts because of impending wars and just material availability. So how do you think about pricing as a leverage that can benefit the entire ecosystem here? So that is just one particular example, but there are many more. And this is where this unlock happens because the life cycle, if you look at it independently, they're solving it for their own context. But if you can step out and say, I can think an entire material movement management across an ecosystem, then you have a very different procurement engine. So I think there's just a complete tap of opportunity here. But to directly answer the question, customers own and then we have to help them understand where they could be a force multiplier by participating.

It's John [ DiFucci ] from Guggenheim. Mattias, you and your team did a great job here today. It was really informative, everybody did. And I -- and it's a really impressive business with some of your financial characteristics. But one of them -- and I think when -- you mentioned 8% growth, but I think the organic growth is about half that. Ben put a slide up there that showed that. I guess two questions to that. One is, why is it so much lower than the organic -- or the growth of the market because I think you said that was about 10% today? And then [ Tammy ] gave a lot of the levers to really pull on and push on to get to that 10%. But the guidance for next year is still about 3% to 4%. So when is it that we can expect to get to that about 10%? And the reason I ask is because there are a lot of investors that are going to look at this and see those characteristics. But once you get to that double-digit growth, it actually opens your eventual stock to a whole other class at an additional investor.

Thank you. I'll hand it over to you, Ben. But you're right. I mean, first of all, but to me, when we talk about 10% plus growth, we talk about the ARR, right? What is hard to predict is the perpetual revenue, how fast that will shift? I mean we're incentivizing it. We're driving it, but it's also a customer behavior and adoption, right? How fast that will go? But we're talking about 5, 6, 7 percentage points of revenue. I mean it's not that dramatic, right? But that will take, let's say, a year or 2, right? Then you have the shift that's going on from maintenance to SaaS. So roughly 30% of our revenue is maintenance. That will take a lot longer time to shift to SaaS, right? It's dependent by product, you have to almost go one by one, right, or which ones are ready and so on. And then the third element that you explained, but we maybe didn't go in too much detail. So we have one portion of our subscription revenue that is kind of monthly usage based, right? Roughly, what is that then? 15%, 20% of revenue. And there, we have seen a macro downturn, I would say, the last, call it, 12 months. It's mainly on the design side, kind of the EPC business, the big capital projects. So I'm not going to give you a new forecast other than the one we gave, but those are the 3 elements you kind of have to model.

Keith [ Weiss ] from Morgan Stanley. Maybe starting from a big picture question. The industrial logic about bringing together all these processes makes a ton of sense, right? The integrated life cycle and the -- just the cost slide that you put up of going to [ 100 to 500 ] the cost to correcting errors. But that industrial logic has been around for a while. That's been in the existence for a while. And the industry has been very slow to consolidate. And there's a lot of structural reasons behind that, some of it having to do with the physicality of the industry, some of it just a lack of impetus. What changes that? Because even within your own organization, only 14% of customers have more than one workflow. What are going to be the catalyst to allowing you guys to get the industry to get on board with this broader vision that is kind of necessitated to get that upsell and get that cross-sell dynamic going?

Yes. No, it's a great question. And I guess if I knew fully, I would have done it faster. But the real answer is when I started in this business 8 years ago, I really thought it would have gone much faster, right? But it's -- I always say it's not a technology problem. It's not a capital problem. It's a people problem, right? People don't like change. It is uncomfortable doing something different tomorrow than what you did yesterday. But it is dramatically different today than 8 years ago. 8 years ago, still arguing with customers about if this was the right strategy. That is not a discussion anymore. I mean they're all -- if you go talk to one of our customers, you will hear a very similar strategy. They're on board with the strategy. Then it is getting them -- you can chime in here, Jay, right? But it's getting them take that leap and take the next step. And -- so yes, I think we're just at the beginning of it. It will happen. It will take time. But those 14% you mentioned, I mean, they also represent half the ARR. Right, so.

Yes. Maybe, I'll build on that. I think you have to borrow from other industries to see kind of the shifts happening. With the rise of AI, it is very clear now that anyone can build applications or insights or products and monetize that. The harder thing that people have to do now is the distribution. How quickly do you get the consumption flywheel going and the usage of that. And so because of that market happening in, say, a consumer-based world and happening in B2B, it's coming this way from an industrial. And I think back to the [indiscernible] kind of point I said of the systems and the retirement and how fast people can build, many companies are now just -- well, I have to change. I have to think about this in a different way. So for us, we want to be a catalyst in supporting them in that shift. Whereas before, I don't think it was as much of an option. It was an intent to do so. We got to do it, but now I think it's an imperative, so.

And if I could sneak in one technology competition focused question. A lot of what you guys are talking about is bring via the data from these various life cycles, these various processes going into what oftentimes are siloed data sets, older data sets. And as investors in the room, I think the one name that pops into our head is Palantir, right? The name that's been most successful in going into these heavy process industries, or old legacy architectures and pulling together all this data. Is Palantir a competitor for what Octave is trying to do? And if so, how do you compete against a vendor that's been so successful in being able to be that integration, that ontology layer for what seems like your core customer base?

Yes. I mean I'll let you chime in. But I would say, are they a competitor? No, not right now. Could they potentially be? Yes, right? I mean.

Yes, fair point. So we have many customers that will entertain and have interest in them. They have a very different cost structure of how they operate and all kudos to them. I think they've done a tremendous job in shaping a market. And if you think about, though, what there are things that are lacking is the domain understanding of how things work. But there is an opportunity to understand the behavior of things based on data and data signals. But I would say very much that you have to understand the workflow, the domain, the process and the value outcomes, but ultimately, how that embeds back into the work cycle. You can't just do that alone by data itself and answer a question and say, here's a 10x improvement in a particular area without that change management back into how things operate. So it's a double-edged sword. So we're actually playing from a complete strength -- area of strength. And I think it's great because it's validating a market that we know and we own. When I say own, meaning that we have the right to go position even faster, and it's great. So we applaud it.

Ken [ Wong ] from Oppenheimer. A question for Mattias or maybe [ Tammy ], I think one of the more impressive slides is when you guys showed the compounding effect of the multiple workflows. When you think about the revised, or the refreshed go-to-market you guys are going to have, how much of it is just accelerating the time line for customers to get on multiple workflows versus potentially increasing the number of products that your customers are actually using? And then just another on just the subscription transition. You mentioned you're not pushing customers at this stage. But as you guys separate from Hexagon proper, I mean, should we assume that we'll see more sticks go along with carts in the near future?

Yes. I wouldn't call it stakes, to be honest, but we are -- I mean, you need to make the case attractive for the customer, right? And the way to do that is by having a new version that is a lot better than the old version, right? Then it's a win-win for them and for us. That's why I'm saying you're going to move this gradually. We don't believe in forcing the customer into some product, or give them massive discounts just to move them into another model, right? We want to do it with a product upgrade. Your first question, I mean, the honest answer is both, right? I mean we need to increase our -- you chime in here. We need to increase our speed. But yes, we also need to get them on more workflows. And I think that from personal experience, when I sit in customer meetings with the salespeople and so on, we always prepare before we go there, look, what do they have today, right? They have 3 products, 5 products, 8 products. Which ones are the ones that are we can upsell them on and get them bigger value and so on.

Yes, definitely. So that's why I mentioned earlier about using AI technology within our sales methodology, right? It's going to be critical that we understand some of the business needs and kind of what's occurring in their business model today. And those insights help us move faster, right, where we would have to do a lot of research kind of prior methodologies, AI is acting us help us move and accelerate. So we're able to do the research quicker, and it's a value conversation, as I mentioned during my presentation. It's not about just kind of showing up with additional products. So we're able to kind of resolve real business problems and get them to be stickier and move quicker. So that's where we think the acceleration will be to get them to do more cross-sell and upsell within an existing workflow.

This was a great presentation. It's Andrew [ DeGaspri ] from BNP. Just wanted to ask a question on the design portion of your business because I noticed it is one of your biggest and it's growing 4%. Just curious to know if in the long term, do you expect that to improve as it relates to your midterm targets? And then a second part of the question is, I noticed you have quite exposure to energy chemicals. I think you said the largest deal in the UAE was -- I mean that area is clearly under focus. So just wondering what's your exposure there and what assumptions you built for this year?

Yes. So sorry, the first one was energy UAE was the first part? Yes, design, sorry. Yes. So the design, yes, it is true that it was -- had a mediocre year last year. I mean, like I alluded to earlier, we had definitely a weaker year in terms of the capital projects, right? If you look at number of capital projects started, I mean, I don't think the uncertainty around trade and tariffs and so on helped, right? If you look at it longer term, I do expect eventually some of that noise will go away, right? And I think the outlook is more positive for this year. But it's also true that I think fundamentally, it will be a slower market than build or operate or so because -- simply because of the fact that we already have such a high market share, right? But I don't think it's a declining market or anything. I mean I still think it's a good market to be in. On the UAE and the Middle East, I would say, with that particular customer, it is almost business as usual right now. I mean they are back to work. But obviously, the situation is very uncertain, hard to predict. It's definitely not good. I mean, when things like this happen and the uncertainty for our customers. So let's see. I mean if it's a short-term thing, I think we can move on. Obviously, if this drags out for longer, it will be a problem. How big is that business? I would say, roughly [ $50 million, $60 million ]?

Yes, it's about 5% of revenues overall, Middle East.

Something like that.

A lot of room to grow.

This is Peter [ Berkley ] here on behalf of Kirk [indiscernible] with Evercore. I want to touch on the concept of the life cycle intelligence and just sort of how that end-to-end process flows, really when it comes from a buyer perspective or again, sort of that network effect perspective. So you guys gave a really good example of sort of the EPC comes in, has their whole design, has the project and then the on-call solution on the back end on the public safety side to monitor it and react and whatever that may be. I'm curious just in terms of the network effects there. If I'm an EPC, and I want to have a project in New York, and you guys are already working with [indiscernible] are those buyers talking to each other where it becomes a competitive advantage for one of those EPCs looking to get the project to get into New York if they're using Octave? Or is there a push or a pull from one side of that one customer segment to another? Just anything on the dynamics of how that all comes together would be super helpful.

Yes. Generally, the answer is yes, then maybe not that specific example because an EPC wouldn't have much contact with the protect side of it, right? But if you would change the example to an owner operator, it's very much that's the case, right? I usually say we have to work this market from 2 angles, right? Like I said in my example, the owner-operator is very influential, right? If you -- they standardize on your technology, it sends ripples in the EPC industry. At the same time, the EPCs are very influential as well, the big ones, right? They get asked by owner operators, what is your advice? What is the best way to build this, to design this? So you really have to work both angles. And we -- I would say that we work a bit as the glue in between, right? We hold industry forums. We do workshops with executives. Like I mean, we try to bring the industry together to solve the problem together.

[indiscernible] Brown from Rothschild & Co. Redburn. Just with Octave being a system of record, could you dive into the unique data that it houses on behalf of customers? And you mentioned that it's an open platform. So would it be fair to assume this will be the same for [ MCP ] Access? And if so, how do you weigh up supporting customers and your ecosystem versus protecting that system of record mode?

Yes. Do you want to take that one, Jay?

Sure. Absolutely. So yes, let's give some context to how things are structured. So one, when we talk about an open ecosystem, we have to work with third-party applications that our customers have also consumed, right? The opportunity for us to go to a CIO and be able to explain how they've integrated in our tools is just paramount to support how it's kind of a build to their efforts. With respect to data, it varies across different parts of the life cycle. So P&ID information, work order information, maintenance records, what have you, right, owned by the customer and how that is actually manifested. So the opportunity there is how are these creating symbolic alignment across how behaviors work. So what I mean by that is a P&ID, a life of that as it goes through that design, or that construction phase into operations, how is it sustained? How it's used and effort? So it's not in terms of now this is exposed. We use MCP, secure MCP interfaces to interact with our systems, but we don't expose that openly, freely to our customers. You think of it just more as you would as you rate limit an API. If someone wants to use an interface, they can. If they want to use an API, then we'll charge for that. So opportunities as this market is evolving right now is how do we collaborate in a way that can be more open, can be more supportive of standards? But it goes back to the earlier point that Mattias was mentioning to the previous question, it is this push pull where we have to be thought leaders in the market and what should be open standards. So the many that the owner operators have done together to try to make data sharing easier, we just need to contribute to that and help the industry evolve.

Tom [indiscernible] in BofA. As you think about the 86% of customers that are in a single workflow and the opportunity to expand that, are you -- actually, let me maybe ask you in reverse. In the 14%, what is the adoption rate in terms of going from maybe design to build, build to operate, operate to protect? Are you seeing them buy one and then the other one at a time? Or are you seeing more opportunity to maybe cross-sell several of these at once?

Good question. I don't know if we have any data on that [indiscernible] prepared, to be honest. No. I think we have to pass on that one and come back to you, to be honest, because, yes, I don't know the exact number.

I know we have the data.

We have the data, but I think it's better we take that afterwards, and we can come back to you.

Got it. Maybe as one more follow-up. You mentioned -- you mentioned -- sorry, I lost my train of thought. I'll come back to you later.

We both come back later.

Gabriela Borges from Goldman Sachs. One question for Ben, which is what are the macro indicators that we should be tracking that best predict and inform your business? And then a question for the broader group, which is we can see the vision on what an industrial company operation should look like if they fully commit to the Octave suite and all of the ways that, that improves their operations. Are you hearing or seeing a change from your customers in how they allocate budget to software and digital transformation because they recognize the urgency and the potential of AI? I'm asking in the context of we know that your customers tend to move sometimes a little bit more slowly. And I'm curious if you're seeing an inflection in their willingness to commit to digital transformation with Octave because of how AI is evolving.

Yes. In terms of macro indicators, I mean, I think you have to look at a few different things. Part of the business is driven by EPCs, as Mattias mentioned. So I think you can look at their funnel, their backlogs, how their outlook is. I look at specific segments, if you remember the customer breakdown that are most important to us. So power generation, the build-out for data centers, how that feeds into demand for nuclear, gas turbines and things like that. These obviously have very long lead times and they're long cycles, but that helps us set the expectation for where those segments can grow in the future. And then yes, as Mattias said, there is a portion of our business that is more macro sensitive. We're only 2/3 recurring at the moment. Anything that affects GDP, or geopolitics is obviously still relevant to that nonrecurring piece. But I think you can look at it segment by segment. Mining -- higher oil prices are obviously good for part of our business. If they're high because people believe they stay high, and it's a good reason to invest. So yes, there are some of the macro things that I look at.

And maybe, Ben, I'll just add on to your second part of your question. So we are seeing a shift. So I probably spent the first 7 months, probably have had over 100 customer conversations, interactions. What's unique is you're creating a space where they can have a conversation about how they would retool the business. So as an example, if they have an existing cost structure to run a large project, it's labor hours, it's cost, and they know how to run that very well. But if they want to attack down market into a cost structure that's very different, you wouldn't simply take the existing process. You'd have to reengineer that. But they've never had that space because they go from project to project as fast as possible. So the Octave collabs gives that sort of opportunity to rethink a model, how would you redefine a process and do it in a very hyper focus just like how we develop software now. So that impetus for change is absolutely happening right now. And so we're excited to see where it goes.

[indiscernible] on behalf of Josh from Wolfe Research. Kind of a question really on when we're thinking about the 86% that are on one workflow, what's addressable when it comes to of that group, to get to that 3 workflow adoption rate that gets that actual expansion kind of to size that path moving forward given it's such a large base of your customers? And then just as a follow-up for Ben mainly, when I'm thinking about the medium-term target getting to that 6% to 8% revenue growth, is there a latter when we're thinking of after '26, we should anticipate some small acceleration facing easier comps, getting more of that actual recurring revenue watering through our actual base? Just to understand the timing of that 4- to 5-year midterm outlook.

Yes. Maybe I'll take the first one. I mean I don't have a scientific answer for you. I honestly don't know if there's a way to calculate one how many of the 86% would be addressable. But what I would say from just personal knowledge would be the very large percent, right? I mean it's hard to think of a customer that wouldn't benefit from having another. I'm sure there are some, right, small ones or in specific niches. But in general, I would say a very large percentage.

But I would add that we are creating a methodology around that. So I spoke to you that we are putting them into different tiers based upon the qualification criteria of their business needs, and that's how we're prioritizing them coming into the top part of the market. So we know kind of the calculations based upon the opportunity that we're going after. So we are going through the installed base deeply to determine which ones we would prioritize first to get to move quickly.

And in terms of the growth profile, I mean, the main driver of that overall acceleration is the ARR growth going from 8% to 10% and subscription revenue becoming a bigger piece of the pie, right? So you end up averaging up the overall growth rate for Octave. So I think that's the main driver. And as we've talked about over the day, there's no one big thing driving that. It's a combination of lots of different factors. So I would expect it to be fairly linear. Obviously, '27 could be a good macro year, could be bad. '28 could be better. So in the bit of our business that is nonrecurring, there is going to be a little bit more volatility, and we'll just have to see how it pans out between now and then basically. But the ARR acceleration is the main lever for the overall organic growth rate going to 6% to 8%.

Two questions for [ Tami ], please. It's Ben Castillo from BNP Paribas. Just on the go-to-market. Firstly, 1/3 of your ARR growth to come from new customers. Could you give us some color on where the lower-hanging fruit is there by pillar, perhaps? What are the most dynamic or which of those pillars do you expect to contribute more strongly to the net new revenue generation? And then the second question is really around the channel mix, so doubling that from roughly 10% towards 20%. Could you just help us understand what does that take from your side to cultivate? What sort of time frame do you envisage that materializing?

Yes, you go.

All right. So kind of on the first piece of it -- or actually, I'll start with the channel side of the [indiscernible] so we are going through an evaluation of all of our channel partners now. As I mentioned, we're looking to kind of baseline everyone. They are global. There are 1,500 across all of our business units. We are exiting some partners now where we don't see that there's a whole lot of revenue value. And then we're also recruiting new partners into countries maybe where we have not a huge population of sales revenue coming from those. And so right now, that's how we're thinking about how we're going to get to double-digit growth. We're also thinking about creating a marketplace opportunity beyond Azure as well as AWS, that we can take some of the lower-hanging transactions and put them through the marketplace, which would actually reduce our overall [ CAC ]. So we see it as a tremendous opportunity to kind of be running through a true channel model. That will take time to build. That's why I mentioned earlier, it's -- I do see double-digit coming from those areas, but that's going to take us a little bit of time to get that foundation moving. And I'm sorry, what was the first part of the question?

I think it was which is the kind of biggest opportunity if you look at the call them pillars in terms of new customers?

Yes. We're seeing a lot more energy just because of the nature of what we're seeing actually, obviously, with AI. So when we say energy, we are looking into more like the data centers and the nuclear side of the equation where we hadn't seen a huge uptick in those areas previously. There's a lot of scheduled projects that we're getting visibility into. And a lot of it is around a lot of it is facilities management, but on the nuclear side as well because the energy costs and rates are going to be in high demand. And so there's a lot of projects that we're seeing coming online in those areas. So I would say the energy sector is probably the biggest opportunity for us right now.

And in terms of just to connect to -- I mean, to his question would be a lot of that would be in the operate -- facilities and data centers.

[indiscernible] [ Carnegie ]. I have a question about the -- you position the company as a unified platform, life cycle intelligence. And I was curious sort of where you are today in sort of the integration of all these different software offerings that you have. Where are you today? And what is the vision? And how much do you have to, from a tech perspective or product perspective, improve the integration between the different offerings to improve the upselling and cross-selling opportunities?

Yes, I'll hand over to Jay in a minute. But like -- since I know you followed Hexagon a long time, right? I mean, the history is, as you know, 65% roughly 60%, 65% of Octave consists of the Hexagon ALI division, right? That was one fully integrated company. Another 20%, 25% roughly was the Hexagon SIG division, right? That was also one fully integrated division. Then we have 3 smaller businesses, right, ETQ, Bricsys and [ Project Mates ]. Those 3 are not integrated fully. They're kind of, let's say, halfway there. So that would be kind of from a historical perspective. And then I'll pass to you what the -- I mean, it's kind of a little bit what you talked about with the platform earlier, yes.

Yes, yes. So from a technological perspective, so first off, as you know, ALI quite well. So playing from an area of strength already where the integrations across engineering and construction and then into operations has a pretty strong base thus far. But as Mattias mentioned for some of the other applications, we launched the Octave platform vision back in November or beginning of December, I should say. So it's not been too long back. But every team moving at an accelerated pace of looking at where you can start to drive some of the data integration. So in particular, in the operate space, if you bring together EAM and some of the operational procedures and the safety procedures, pretty easy and fairly quick to do. And then some of the aspects as we're talking on the protect side are now kind of new use cases we're bringing into that. So I expect through this year that the team is continuing to build those use cases and foundations, and then we'll have some pretty exciting stuff to share coming at the new year.

Andrew Thomas from [ Gates ] Capital. I was hoping you could talk a little bit more about your target leverage range midterm in terms of net debt to EBITDA and maybe the max leverage range you would take on for a deal? And then kind of related to that, how is the M&A pipeline today in terms of deal size and just activity level? And then finally, could you clarify the capital return opportunity here in terms of share repurchases versus dividend?

Yes. I mean in terms of leverage, we're going through that process at the moment. It should be completed in the next few weeks. But I think the maximum leverage headroom we'll have is 3.5x net debt to EBITDA, with a spike to [ 4 ] for a period of time if you do a larger deal. So that's what the capacity will be. Obviously, we're not going to run the company with those kind of leverage. It will be significantly below that. But we haven't given a kind of target as to whether that's 1x, 2x, 2.5x. We'll come back on that. But it will be way less than the capacity that we have.

Yes. And then M&A?

Yes. M&A pipeline, I mean, the pipeline is actually quite big because as you can imagine, running a spin project for 18 months takes a lot of management's time. And doing acquisitions in that period messes with all the numbers you have to submit to the Form 10. So it's deliberately been quieter over the last 1.5 years within Octave. But yes, [ Jon ], the Head of M&A is here. I think he has a busy pipeline, and I think there's a lot of good ideas that we could look at post-spin if we want to. And maybe it didn't come across. I think the areas for M&A is to operate, build and protect where we see the most opportunity. But yes, the pipeline is healthy.

This is Ian Black with Needham & Company on for Scott Berg. For the volume-based side of your business, how much visibility do you guys have into the starting and ramping of large contracts and projects?

Yes. I would say pretty good. I mean we get a live score every month, right, in terms of the usage-based licenses. So it's -- we know fairly well. And it usually, I would say, moves on a, call it, 18-month cycle. So we are pretty good at predicting it, I would say, generally speaking.

Okay. Thank you. That was our last question. We're at time. Thank you all for coming. We have demos outside in food. So we'd love for you all to join us out there.

Thank you, guys. Appreciate it.

Thank you.