HP Inc. (HPQ) Earnings Call Transcript & Summary

Good Morning. I am Pretesh Dahya, Director of Investor Relations at HP and I would like to welcome you to our Investor Tech Talk series. This series of investor updates will provide investors with a focus and educational update on HP's innovation, products, services and solutions, consistent with our Advance, Disrupt and Transform business strategy. Today, we will be focused on the Disrupt pillar of our strategy, with the 3D printing and digital manufacturing fireside chat to talk about our recent partnership that we've announced with Oechsler. We will also take investor questions -- so for the last 10, 15 minutes of this conversation. So if you have not already, please submit a question via the Zoom toolbar at the bottom of your screen. With me today is Ramon Pastor, General Manager of our -- of HP's 3D and Digital Manufacturing Business. Ramon has been with HP for over 28 years and is based in Barcelona, Spain. Welcome, Ramon.

Good morning.

And also joining us today is Matthias Weisskopf, SVP, Global Product and Technology Development at Oechsler. Matthias has been with Oechsler for over 12 years and is based in Ansbach, Germany. Matthias, good morning.

Good morning.

Good afternoon, I should say.

Yes.

Before we begin, let me remind you that a replay of the Zoom webinar will be made available on our website shortly after the call. As always, elements of this discussion are forward-looking and are based on our best view of the world and our businesses as we see them today. For a discussion of some of these risks, uncertainties and assumptions please refer to HP's SEC reports, including our most recent Form 10-K and Form 10-Q. HP assumes no obligation and does not intend to update any such forward-looking statements. Ramon, Matthias, thank you again for joining us today. Let's dive right in.

So first question, I think, for our viewers, I think, would be helpful. If you can help them understand, Matthias, a little bit about Oechsler at a glance, just a short summary for our listeners.

Of course. So as most of you don't know, Oechsler, perhaps, I want to give you a short brief about Oechsler. So we are a traditional German company, founded in 1864, so more than 150 years old. In the last decades, our focus is definitely injection molding. So we host more than 400 injection molding machines worldwide. Until 2004, we have been a local company in Bavaria in Germany. And since 2004, we spread our footprint globally. So what does it mean since 2004, we founded several sites starting in China, Romania, Mexico and later on also in the U.S., Vietnam. Our focus is definitely still automotive. So more than 60% of our turnover is dedicated to automotive business. And we started additive manufacturing or focusing on it in 2017. At that point, it was definitely clear that it's a production focus and not a prototyping focus. Since that, we also used our global footprint, setting up additive manufacturing. So we had it available in Asia, Europe and also the U.S. We want not to replace injection molding by additives. It is definitely extending our capabilities, our production capabilities, offering additional technologies to our customers, to our markets. This is all the reasons. So additive is independent of the markets. We can use it for every branch. It is scalable, it is fast and we need to be reactive on this market. So definitely, with a combination of assembly, not only having injection molding, but where we also assemble our components, it offers us new potentials. So just giving you a short introduction of Oechsler. Hopefully, it's enough that we can move forward.

So thank you for that, Matthias. That's very helpful. Let's talk a little bit about the partnership that HP and Oechsler have announced here over the past few months. Ramon, maybe if you could just start a little bit about what are the key focus areas that the people should understand?

Yes. For HP, and let me start with HP on the partnership. For HP, it's clear that the path to digital manufacturing requires a strong ecosystem of leading innovators that share the same vision, the same goals, the same level of risk, the same speed to innovation. And this is where our partnership with Oechsler fits very, very well. Oechsler, and as Matthias has already shared it has and know-how and capabilities, both in design, engineering services and also a track record of bringing mass scale digital manufacturing to reality, which builds on top of HP's additive manufacturing, know-hows and capabilities. And what is more important for me, which is that we both understand what it takes to deliver the value at each step of the way. So partnering together, we aim to grow and accelerate opportunities for our customers.

Okay. And then in terms of partnering directly with Oechsler, what were some of the key reasons to partner with Oechsler?

So the key reasons to partner with Oechsler is again, is the know-how that they have. They are basically one of the few IT manufacturing companies that really have applications and have scale. So there's not many actually that can say this around the world. And Oechsler has really a number of application. And actually, Matthias later on the -- I am sure that you will cover them that have moved from really the concept phase, to the prototype, to the production. And really, this production actually has scaled to obviously, hundred thousand -- hundreds of thousands of parts.

Thank you. Thank you for that. And Matthias, maybe a few comments on why Oechsler wanted to partner with HP?

So definitely, the main focus was that HP is focusing on scalability. So scalability means mass production ready. A lot of additive technologies are still in the phase of being linked to prototyping, but for us it is a manufacturing technology. So we want to scale it in terms of quality, in terms of speed, but also in terms of costing. And this is definitely where we found out that HP is the perfect partner for us. And in addition, it is not only talking about printing. Printing is one step of the whole value chain, right? So it is somehow a network, as Ramon mentioned, of people that have the same mindset, the same vision, right? It is more bringing the right people together, starting from design, but also the customers and involving them because the customers don't know how to design a product for them. So we start using the same customer network. We start working together on the customers on the product vision to use all experience we have in our companies to generate somehow this market as it is definitely not a standard. And this is the HP ecosystem, but also the manufacturing hubs, right? The vision behind additive is definitely not a centralized production, it's a decentralized production. So printing components where they are needed. And for this, you need to work in a different way to make that in the future.

That's good. Thank you for that. So let's talk about maybe our next topic. The COVID pandemic clearly transcending the world and impacting economies on many different levels, both over the near-term and short term. Maybe let's talk a little bit about the impact that COVID is having on the 3D and digital manufacturing business. Ramon, why don't you start, maybe what are some of the near-term impacts you're seeing here from COVID?

Sure. And COVID has been a watershed moment for all of us. It is from the point of view of us giving response to this dramatic health care crisis to the personal impact that all of us have had to basically, the business side that we wanted and needed to ensure business continuity along basically the disruption of supply chain that we have seen. I think that COVID has showed us one is the main thing that the traditional supply chains has its limits. They are very good, very efficient. But only when you have a very stable supply and a very stable demand. And these crises have showed actually disruption in both the supply part where companies were shut down, countries were shutdown, a lot of supply chains were disrupted and disruption on the demand side, where you have seen unforeseen peaks of products that -- like medical devices, that nobody could foresee. And this is where -- when we saw all of this, this is where the 3D community has step up and work basically as a community to fill the gaps on all this disruption. It was in a matter of days that actually we reorient most of what is the 3D printing business to understand at a local level, what are the needs, what are shortages on this type of devices. Begin to design, prototype, qualify, certify and eventually produce within HP premises and using our network of partners up to 4.5 million parts that we have produced to help those on the front lines. Parts like, and I'm going to show some examples, mask, face shields for personal protection, nasal swaps and these were actually ones that actually were certified by the FDA, that was one were the first ones actually to help accelerate the test. And one of the things I'm more proud is basically the work that we did to actually -- this is a big part to design and produce with partnership with other companies, a field respirator that actually at the very beginning of the crisis, there were a lot of shortage of these type of devices actually helped literally save life. So I first want to thank a lot all the professionals that have actually been working around the clock to make this extraordinary effort that actually has had an impact. So going back to the question that you were making is, what is the impact on COVID forward looking? And what I would say that often in times of crisis, there is a stimulus on innovation and execution of action. So I think that the whole industry has taken note the benefits of 3D printing, the speed of the reaction that we have, the factory flexibility. Actually, we have factories from our customers that were producing one day the products that are usually producing and ship the next day to produce medical devices, the distributed manufacturing. All of this compared with the rigid ecosystem of the traditional manufacturing. So we really expect that this experience through the crisis will accelerate the 3D printing adoption.

And that makes a lot of sense. And Matthias, maybe your thoughts on also some of the longer-term impacts we're likely to see from the pandemic on digital manufacturing?

Yes. Just in addition to what Ramon mentioned, the change of supply chain and the change of speed or needs is definitely that many people realize the need for innovation and need for innovation means using something what they've not known before. And it is really somehow funny that medical business changed their standards as they are known being very strict in the past. So in other businesses, a lot of people hesitate to use additive even for some short-term activities. But in the medical business, they showed in the crisis that it's possible. So they stepped besides changing their standards, realizing that additive manufacturing can replace some technologies just speeding up and solving the supply chain demands that they had suffered with, right? So hopefully, the long-term will be that other branches take a close look to it and adapt and not only seeing the hurdles, but also seeing the solutions in this COVID. For example, definitely spare parts business should think a lot about this crisis.

Thank you. Thank you for that. So let's switch topics a little bit here and maybe dive into 2 related areas: one, customers' applications and then also the design process for 3D. Ramon, why don't you start and kind of walk us through how you're thinking about specific applications and areas of focus for the company and the partnership?

I think it's important to remind that the center of our strategy alliance with Oechsler is the joint development of entirely new applications together with market-leading customers to create, in some cases, unique pro designs or to build new mix environment, for instance, with injection molding. But the end is to bring 3D printing much faster to the market, taking advantages of the capabilities of additive manufacturing. I think that we are going to go through a number of applications, and we're going to use some visuals to showcase and give a little bit more of a picture and attach to make it real. Together with Oechsler, we are focusing a number of verticals. And the ones that actually we put a special focus are, for instance, automotive or in general transportation, with a special focus on fluid systems, medical devices, and we talked a little bit about medical devices on the last question, industrial applications, including robotics for consumer goods. I am sure, Matthias will share with you some specific examples to illustrate these applications that are a reality, thanks to our partnership.

Yes. And maybe on that Matthias to jump in. Talk a little bit about the design process, kind of what you've seen from your side in terms of how that's working and how that's expected to go?

Yes, definitely. So in the beginning also Oechsler, as we are an injection molding company, as I mentioned, we thought we should somehow replace products that are on a lower scale, just the quantities by additive. But we found out it in a very early stage that this doesn't really make sense. So if you want to compete against injection molding even in some small-scale volume, it doesn't really make sense. So you need to think about additive in the whole value chain. And this definitely starts by the design aspect of the product, right? Not only adapting the product to the process steps. It's not only printing also the post processing, but it's also about functional integration. So what does it mean? You can integrate and added value on the product. So that product can realize some functions that they were not able in the past just by different geometries or other design aspects. I can show you later on or I will show you later on some details. So that -- in total, that means the service behind the product development is even more important. So of course, in the mean -- Oechsler is producing the components, it is clear. But the vision, as I mentioned in the opening session, is that additive means a production where it's needed, so a decentralized production. But not a product will be designed all over the world. So the one who develops the product, who designs the product is the owner of the data and the owner of the service. And where it will be produced wherever it's needed, right? So there's a lot of activity in the software part and in the design part. So 2.5 years ago, I would have never thought about developing software at Oechsler, but we had to do it somehow in a way how to design a product. And this is mainly valid for, for example, for components, what we call lattice products, so latticing -- lattice structures are kind of woven structures that are able to realize different product performances. So I can show you some also as an example. But here, you see a classical form has a hysteresis curve. It is too technical, perhaps I know, but you can adapt the performance of a product to the design by adapting a cell size to the diameter or the cell geometry. So there are -- even this inside a product. So a product can integrate several functions into one product. And this is definitely unique and no other manufacturing technology can offer. So this is definitely linked to additives and cannot be replaced. And this definitely starts with the product design. So you can generate those structures in an easy way if you think about a normal cut. But if you want to make them adaptable, you need to program them. So we started by developing our own software that generate those lattices in combination with a mechanical load. So -- and you cannot develop this for every product from the scratch because additive needs to be fast. Additive needs to be customized, right? And if you need an R&D guy for every single component, this doesn't work. If you want to integrate additional contents -- sorry, do you hear me? I have a phone on my -- so you need to adapt the functions. And I can show you some examples. For example, you can integrate into those lattices [Technical Difficulty] so these are different lattice structures, different cell sizes, different cell geometries, right? And all of them are able to deliver the same performance, right? And you can see the difference in it. So you can imagine that it means you can integrate a ventilation, you can adapt customer -- by customization, the comfort of those components. They are more focused on lightweight and some of those only think about soft components, right, when you can compress it. But you can also use it for rigid materials, for example, for crash absorption. And this brought us mainly to our customer project with a well-known German brand -- car brand Porsche. So 2.5 years ago, we had the vision of realizing an automotive seat. You see this here on the slide. A normal automotive seat is -- in a carbon shell, it's a race car seat, and it's not really comfortable and definitely not adaptable. So we had the vision of realizing or customizing of a car seat based on the driver, but also on the usage where it is used. So for example, on a racetrack. So this is the reason why we started with Porsche Motorsport in a very early stage. So really after less than 4 months, we had the first samples in hand, and we realized that the value is much bigger than we had in mind. So it was not only about customizing for Motorsport, we wanted to use it for more. So that means the comfort was adapted but also the weight. So we save up to 40% weight for this component, and this is even -- this is really very much. So Porsche took in mind that [indiscernible] that we can use this for much wider components. And in the end, we ended up realizing a whole car seat itself. So I can show you some examples here. This is the somehow latest version. This is the seating element of a seat, right? And you can imagine that the print space inside a printer is not that big. So for example, we developed a way how to fold this product printing them and using them later on as a bigger part. So that means you need to cut those cells in a way that you don't feel this later on and that you use all the better performance of this product, right? So this is one piece. And the second one is definitely that in the past, additive was mainly negative related to material properties. So car industry means a lot of specifications for car interior materials. So nobody had in mind or no -- that it's definitely possible the HP process and material to get the approval for using those components for interior of the car. So this was just the proof-of-concept for interior components. So you can imagine that launching the seat offers much more products in the future based on the same technology and the same usage. So latticing is not only focused on the seat, you can imagine the dashboard, the arm rest, whatever. This is one example in the automotive. But there are other products we're also working on or worked on, for example, in the industry area. As Ramon also mentioned, the robotic market is a fast-growing market and even more important, also by the crisis, a lot of people talk about mobile -- talking about mobile robotics. And mobile robotics means interaction between a human and the robot. And what is the problem of interaction of a human and a robot, all of you know or perhaps some of you know the interaction of a robot in the industry area. So that means a robot inside a cage. The human has to keep a certain distance. And even when the human is coming too close to the robot, the robot needs to slow down, that it doesn't hurt the human if they're getting contact and so on. This was something that we had in mind with Daimler, being honest, that needs to be changed. So a cobot solution where a human and the robot can work together without interfering the cycle time or the working procedure, right? We call this a robot's kin. So I only have a tiny one as I cannot fit a robot in my office, but this is a standard industrial robot, as all of you know, right? And those black elements are the elements we call as robot's kin. So it protects the human by working together with the robot. So why do we need this? Still in automotive or in production areas, robots or cobots are not used because they interact too much in the working performance. So it keeps the production running. And giving you an example, if you build an engine at Daimler, there are some processes that a human need to realize a robot cannot do. So for example, inserting the pistons and exactly for those topics, a human is working, and the robot is assembling the rest of the engine. So -- and for this, I also want to show you a bigger part. Every robot has a tool in front of it, right? So this is, for example, the cover of a tool for feeler gauge of the exterior. And in the past, this was an assembly of 16 single components and by using printing technologies or the HP technology means combining 16 products into 2 without any complex assembly. So you can imagine that this is not only interesting for the automotive or for the industrial market, even by mobile robotics, mobile supply chains, I don't want to mention Amazon because we don't want to work with them -- we don't work with them together, but all of these topics bringing local demand to nonspecific users is a huge topic.

Okay. Thank you for that. That's really helpful, Matthias. Thank you. Let's talk about Ramon, 2 kind of related topics. One, how we're helping customers scale to production and then also some of the various business models that HP is also working through to make that a reality?

In our view, actually, one of the main things to help customers to scale into production is innovation. We are still on a business that requires a lot of innovation. We are in a journey basically to disrupt manufacturing and innovation is key. And the journey to innovation in HP always starts by insights, insight driven by data. Data that we get from our customers and the usage, data from the applications our customers do, from market trends. And basically, this drives innovation in 3 main vectors. The first one is manufacturing predictably. So basically ensuring that our devices, our solutions can integrate on a factory 24/7. The second is economics. Driving economics, lower breakeven point or actually a higher breakeven point versus injection molding and making sure that our customers can access to longer and longer brands. And the third one is expanding applications. Expanding applications, through design. And Matthias was talking about for instance lattice design through more materials, through more post-processing and finishing options. And all of this innovation, we do in a very collaborative way with our industry partners. Within this innovation, in the last 3 years, actually, we have introduced what I would call, is actually the most innovative portfolio of hardware material services, software solution that is on the market. And talking about basically solutions and business models. And now let me go to the second part of your question. For us, it's very important to keep on the journey that we begin to describe during the last -- the last year at the Analyst meeting, where actually, we said that we are looking to expand our business models to be able not only to scale the business and create more value to our customer, but also is to capture the value that we are creating. For this, we see a lot of opportunities to putting together number of our hardware, software and service solutions to fully participate in the value chain. And a very good example of this type of solutions, of this type of strategy is the recently announced HP Molded Fiber Advanced Tooling Solution. This is actually our first end-to-end solution that we have introduced into the market where HP actually designs and produces the tooling needed for the molded fiber packaging process, taking advantage of the unique characteristics of HP's technology of Multi Jet Fusion to produce fine measures while delivering to our customers a much faster turnaround time versus the current supply chain as well as lighter, more durable tools and more innovative packaging designs. And we see a lot of opportunity to expand this type of end-to-end solutions into the growing industry of mass customization. From another side, also, we are also expanding our business models. For example, with the HP 3D-as-a-Service subscription, where we provide our customers with automatic refreshment of HP supplies, materials, agents, service, simplifying the tracking and billing of usage and providing remote and on-site support services. That being said, obviously, we will continue and we continue with work with our customers and partner to scale new applications. So as a summary, if I had to summarize, we continue to push the innovation to accelerate the adoption of 3D printing while increasing our play in different business models, including end-to-end applications.

That's good. That's good. Thank you for that. Maybe we'll do one more question before we kind of go into some of the Q&A I'm seeing in the -- that's been submitted here in Zoom. Matthias, let's talk a little bit about materials, materials applications. I think HP has launched more recently here, new PP material. We probably been working with TPU for some time as well. Maybe talk a little bit about kind of some of the benefits, versatility, some of the properties that you see in those materials?

Yes. So Ramon mentioned already. So we had this PP collaboration also between Oechsler and HP. This was announced, I think, in the middle of the year. This is bringing somehow a well-known mass production material, polypropylene in the -- of the injection molding market into the additives market. Why? It's clear. PP is a perfect material for independent of the branches. So it is used in automotive made but also in the consumer goods area. So it's really moisture resistant, it's chemical resistant and it has perfect mechanical properties. And perhaps something that needs to be mentioned here also that you can recycle it to 100%. So the sustainability topic is really important also on this end. So using it also for assembly means it offers us definitely a wider range. And it's, by the way, one of the cheapest materials in the plastics industry. So it is somehow a high where additives can enter new possibilities, right? And it's somehow comparable with TPU but on the other end, I would say that TPU is still a kind of new material in the plastics industry. Many soft components, you know out of the ceilings or cushioning are reactive systems polyurethane based and the thermoplastic polyurethane performs in a different way. It's also more resistant and you can realize other products. So it is definitely not competing against available materials, injection molding, but they are close to the products that are in use so that you compare -- can compare the properties of the material. And this is important that even the end customers or the applications have the ability to be compared not to start from scratch.

Thank you for that. So let's switch gears, and we're going to take a few questions here for the time we have left, and it will be a little bit of a rapid fire round of a few Q&A questions. So Ramon, let's start with one that I see here as well. Metals. Metals has been an area we've talked about in the past as part of our 3D and digital manufacturing business. Maybe talk a little bit about kind of what the progress is there, the road map in metals?

Yes, Pretesh. We continue to do a lot of progress and increasing the momentum on the metal since we are not seen in late 2018. We keep basically developing the technology, and we keep basically adding partners and customers to the metal launch. And actually, I can just talk about to our recent examples that we announced in June. The example, for instance, Cobra. Cobra is basically one of the world-leading golf equipment manufacturers that has selected HP to make its entry into 3D and customization of golf equipment. Together with Cobra, Parmatech and us, basically we are going to work, and we are working together on a multiyear road map of highly personalized putters, club heads and other golf equipment. So that's an example. That builds, for instance, with the collaboration that we've had for a number of years already with GKN, which is the leading metal -- mischmetal equipment with a partnership with different automotive companies like Volkswagen. And maybe the other example that is recently we announced is basically collaboration with the U.S. Marine Corps to produce around 200 replacement parts for their amphibious vehicle, which is actually is a vehicle that is well between 30 and 40 years old. And basically, this still has 10 to 15 years of life of service. So the spare part is a big problem that they have and actually, we are helping them to solve, which again, producing with our technology up to 200 spare parts.

Okay. Thank you for that. I see another question here about material costs today between, let's say, injection molding and additive or 3D printing, maybe either of you can take this one. What are the relative costs today between injection molding and 3D printing? How would you kind of describe that?

Maybe let me start and maybe ensure that Matthias can build. So a breakeven point for injection molding is actually a complex calculation to do because it's a function of geometry, of size, on basically how the production is set up. But in big terms, basically, we are moving on breakeven points between -- for big parts thousands or tens of thousands of parts; 2, when we talk about smaller parts, hundreds of thousands or even more. This is actually -- we are talking here about generic products. When you obviously talk about injection production or personalized production, then, obviously, the economics for 3D printing are much, much superior. And with the interaction of PP, polypropylene, that Matthias was just talking about, we just actually moved breakeven point up to the right again, because this is by far the cheapest, more affordable material that we have introduced, and therefore, the economics will be very, very favorable.

So this is mainly linked to also the complexity of the product, right. The more complex a part, the more complex a mold is and the more complex a mold is the higher the costs are. So if you just compete against injection molding with simple parts and tiny parts, it's almost impossible. The bigger, the more complex a part, the better is -- or the higher is the potential of using additive as a competition. But as I mentioned, if you just want to complete to injection molding, it's mainly not -- it's definitely tough. You need to add functionality, you need to add performances what an injection molded part cannot deliver.

Thank you. Thank you for that. So I see another question here regarding how Oechsler determines who to partner with in additive manufacturing, the question is also commenting on Oechsler and Carbon also have had a partnership here for some time as well. Maybe talk a little bit about how you think about the playing field and also how HP fits into that and some of the -- maybe some of the pros and cons there?

So, how to say, there are several technologies available on the market, right? And I'd say all of those technologies are unique for the USP. So there is no technology that offers all abilities to solve all problems for all applications, right? And the market is that big. That you need to choose the right technology for the right application and not to develop an application based on the technology. So for example, definitely, material properties play an important role. If you go into a car interior, that means emission VOCs, this is something different materials perform in a different way. So from my -- and summarizing it, there is no technology that fulfills all needs for all products on the market. So there are different markets and different technologies that need to fulfill all the requirements.

And maybe let met complement on this one. And I think that many of the people that are watching this firechat are very familiar with the technologies that we see today in traditional printing. Even in traditional printing and digital printing, you see that there is not a single technology, we have inkjet, we have laser, we have liquidity, we have others. So it's -- and this is because no single technology can cover all the applications. In 3D it is the same. No single technology and materials are the same, this cannot cover all the applications. Now having said this, we believe that with the efficient and with the leverage that we do with all the investment on inkjet, with the 2D traditional of business in HP, we have the most versatile technology that can cover -- cannot cover 100% of the applications, but covers actually the big majority. And with this, actually, we think that we have an important advantage both in economics, but also in coverage on many applications. But again, you cannot cover everything and Carbon actually a great technology, it's actually very complementary to us in this case.

Okay. Thank you for that Ramon. So another question, maybe this is for Ramon. Maybe an update on the ability of the 3D business to really start to ramp up and drive a material impact to HP's financials. How do you think about that Ramon?

Yes. First of all, let me start with the big picture. The big picture is basically the future that we promise is basically to address and participate in this $500 billion TAM that we see over time. This is a timeless figure. With this as a North Star, basically going into this disruption journey is, as we say, it's a journey, and we are at the beginning of this. So basically, and this is the reason that we don't report publicly the numbers for 3D is that today, 3D is a small part compared with, obviously, personal systems and print and basically doesn't meet the cut. Although, I can say that actually we are basically hitting our milestones. And the way to think about the 3D printing business is thinking it about the way that we are evolving from volume to value. So basically, we -- as I was saying before, we are doing 3 things: we are scaling the business, we are creating value, we are capturing value. On scaling, obviously, we track the number of sales of a printer. But for us, what is more important is basically the creation of value. And then for this, is very important, the number of parts and the value of the parts that we're doing. Just to give you some numbers, in 2018, we are disclosing that we had produced 6 million parts. Last year at SAM, we disclosed that we have surpassed 18 million parts. And the objective for 2020 was to double this. And I can say actually, we are well on track to meet this objective. And on the part of capturing value, again, is our ability to complement our business model with much more sophisticated contractual relationships, with recurring revenues and basically engaging with our first end-to-end solution. So this is a little bit the way to think about this business.

And speaking of the end-to-end solution other question there, maybe tell our listeners a little more about this recent molded fiber launch. We talked about it very briefly earlier, but maybe a little bit more detail on this end-to-end solution that HP has launched?

Yes. This is a solution that we launched a couple of weeks ago, and it has had a fantastic reception in the industry. To think about this, basically, what we are helping the providers of molded fiber packaging, which is basically a packaging that is based on recycled paper and pulp fiber. So it's very sustainable packaging, what we are providing them is with design services to do their tools and the manufacture of them. And basically, this has a number of advantages. The first one is the turnaround time. So basically, our turnaround time of around 2 weeks really is hugely disruptive to the 6 to 8 weeks that they used to have with traditional supply chains to -- this is advantage #1. But basically, the second advantage is basically the quality of the tools that we produce, not only the cost, but basically the durability and basically, designs that we can do that were not possible before. So basically the interaction has been great. We are working already with a number of partners. And we expect basically to scale this business rapidly and capturing again the value that we are creating.

Thank you for that. So I think we're actually about out of time. So we'll probably wrap up here. Ramon, Matthias, I want to thank you both here for the time and joining us here to talk about the partnership, the road map here and where you see the business going in 3D and additive manufacturing, really helpful conversation here. I want to thank our viewers here again for joining us. Hope you found it helpful this first in a series of tech talk conversations we're having. I'd also like to mention we're going to have a second tech talk focused on our Personal Systems business actually on October 19. So we hope our viewers and investors can join for that in a few weeks' time. So with that, thanks all for joining. Ramon, Matthias, thank you again for your time. Appreciate it. Thank you.

Thank you.