Nemetschek SE (NEM) Earnings Call Transcript & Summary

I think we can start when I look at the time and the participants. Hello, everybody, and a warm welcome from the Nemetschek Investor Relations team. This is our first special day for the Media & Entertainment segment that is represented by our Maxon brand. Thank you for your interest, and thank you for joining us. Within the next 2 hours, you will get a deep insight into our Maxon business and we would like to educate a bit where the software is used. At the end, we will have enough time for a Q&A session. Our special day is being recorded. A replay of this session will be available at our website after the event. [Operator Instructions] But now let's start with the first presentation. We will kick it off with our spokesman, Axel Kaufmann. So go ahead, Axel.

Super. Thank you very much, Stefi. And while I pull up the presentation, which should be this one, and someone is nodding hopefully to be able to see the presentation. It should now be in presentation mode. Let me also say a warm welcome from my side, and thanks, first of all, for you having registered for this event, you, Stefi, and your team having organized this. And a special thanks to Dave McGavran, our CEO of Maxon and the Media & Entertainment division as well as Simon Walker, our Global Head of Training and Learning at Maxon, who will lead you through a middle part of the presentation, giving you some real examples. We will do the meeting in English. And we want to say upfront that this meeting was wanted by many of you who have approached us and who have told us that they would be interested in more details and a look behind the scene. So here's an agenda for today that we roughly want to try to walk you through. I'll kick it off to show you the impressive transformation of what the segment has been going through really over the last years. Dave will give you an overview of what Maxon is about in the media and entertainment industry and the landscape that he's competing very successfully within. When we talk about rendering, sculpting, animation or modeling, it might be somewhat abstract for some of you. And therefore, again, we thought it'd be a good idea to have a short product presentation so that you have a better understanding of what are the typical customers that use the solutions and what are the use cases on an everyday basis. And therefore, Simon has prepared, as I just mentioned, something that I really think is thrilling and keep all of us alive. The goal of today's session, overall, would be to walk away with a better understanding and the details about what the segment, for us, it's a segment of the division went through in terms of a fundamental transformation over the last 2 to 3 years. We'll talk about the transformation in more detail, why we're so convinced that there's an even greater future ahead of us and what are the typical players in the M&A space and why we think we're better and stronger positioned here today than ever before. Media & Entertainment, however, might not have received the amount of attention, appreciation it deserves in the way that also how we communicated about it and to capital markets and investors. By the way, we have not invited the many requests from investors or also business journalists or industry journalists that wanted to participate in such a similar session because we really wanted to have this tailored to you, our analysts, that know most of the Nemetschek story for so many years so well. So with this, let me try to kick this off once again. And by looking at this slide on the left side, again, we want to start framing the Media & Entertainment a little bit in the context of what Nemetschek Group is about. You all know the AECO, as we call it, business very well, which represents the core of our Nemetschek Group's business. There, we are a true global leader in terms of -- probably the global leading software vendor for the AECO industry with the longest history in this area. With our 3 segments: Design, Build, Manage, we have a full-fledged product offering for all professionals along the entire life cycle of buildings and infrastructure projects. We want to stay, and this is very important, very dedicated as we are to this industry, which offers an attractive long-term growth potential based on several structural growth drivers, which we have discussed many times. I believe that part of our equity story is well understood when it comes to the AECO, also by the capital markets. And that is why we would like to take the opportunity to talk a little bit more in depth about the fourth segment that's a little bit outside. It started with AECO, but nowadays, it's more and more becoming outside the AECO industry, media and entertainment, to form almost a separate business. Some of you might have seen the article the other day in a German business paper. And despite its ties into the AECO space, we think it might have seen that at least from the outside that this division was more like a fifth wheel, I've been using this term, on the wagon for many years, and it's no longer it. You will see why and what we have in mind. So that's now on the right side. And the next minutes, I'll try to walk you through what we think about this business. Media & Entertainment, that's essentially the Maxon brand. It bundles all of our competencies in this field. If we take a closer look at Maxon, it's a leading developer of professional 3D modeling painting, animation, visualization, rendering, all for the creative industry. Artists worldwide use the software to create 3D motion graphics, architectural or product visualization graphics from computer games, illustrations, visualization effects, films, commercials and much more. Maxon's long-standing clients include the who is who of the global media and entertainment industry, including companies such as network and stations, Sony, The Walt Disney Company, BMW, Apple, just to name a few. I personally have the pleasure to work with Dave and his team as a coach in the segment. And in Dave, we have a true industry expert with more than 2 decades of experience in this space. He joined us from Adobe a few years ago, and is, therefore, also one of the veterans and true subscription natives. On the one hand, this was, I would say, one of the main reasons why Maxon was one of the first major brands to migrate from a perpetual business model to a subscription model. On the other hand, his great wealth of experience and his practical insights regarding subscription models proved to be a valuable asset for many of Maxon's sister brands within the Nemetschek Group. If we talk about numbers, as I know many of you are interested in, in numbers, you see that also that the 10% share of wallet that the division currently represents in terms of the Nemetschek Group. Don't forget, it used to be only 5% a few years back. So within 3 years, this has doubled. And more importantly, the share of the subscription business overall within the Nemetschek Group, that accounts to up 1/3. So this is going to be already my last slide, but I wanted to walk you through what I call the phases of this transformation. When Nemetschek, and this is maybe Phase 0/Phase 1. 20 years ago, acquired a stake in Maxon, a German-close-to-Frankfurt-based company, the rationale was that this experience in the field of visualization was also an important part for designers and architects in our what today we call the Design segment. Initial years of strong growth, Maxon entered a consolidation phase where the company grew at a CAGR of around 10%. Reasons for this solid growth were Maxon's subscale size as well as a lack of some features such as the state-of-the-art rendering solution that was back then missing in Maxon's product offering. But many things have changed since ever then. So when we look at 2018, kind of '19, those were the years where I would say this was a turning point. And Nemetschek as a group had to make an important strategic decision regarding the future of this segment. And with the benefit of hindsight, I think it was the right strategic move and the entrepreneurial brave decision that, given the attractive growth profile of this industry, we decided to double down on and go all in the business. And we started a very ambitious transformation plan. The very first steps were to buy out the former founders of Maxon as well as appointing Dave as -- become the new CEO of the company. Then the last phase, and we can talk about the future certainly during this call as well. But until today, I'd like to summarize this phase '19 to '21 as an extremely well executed, and thanks to the entire team and successful transformation of the entire company. We would have acquired Red Giant and Redshift, as you know, a giant being the innovative software vendor for motion design and visual effects. And Redshift being more the market leader in what I just said, the rendering solution, state-of-the-art leading edge and integrated both of them into Maxon. So basically, made 1 company become out of the formerly 3 separate within the Nemetschek Group. I'm claiming this was the first fully fledged integration within the Nemetschek Group's history as strict and as consequent, it was done under Dave's leadership. So we started the very successful move from the traditional license and maintenance model to the subscription, as I've just said, which also provided valuable practical insights and tips for other brands and business units within Nemetschek. In sum, I would say these major steps and, of course, countless other smaller measures have led to a reacceleration of the organic growth and to more than a doubling of Maxon's revenue since 2018. And with that, really, once again, repeating everyone that we are, as the Nemetschek Group, extremely committed and enthusiastic about this business. Handing it over to the person who is responsible on a day-to-day operational basis, for that, Dave McGavran, and I want to start my presentation, and Dave can follow up this one. Thank you very much.

Hello, everybody. Thanks, Axel. My name is Dave McGavran, and I made my screen started here. Hopefully, this goes smoothly. Hopefully, everybody can see that. Good. So my name is Dave McGavran. I'm joined today by Enrique Glas, our CFO, and I also have the world famous Simon Walker, who is our Head of Education and Training, and he's going to be giving some great product demos later so you can get flavor for what we actually do because it is different, as Axel said, in some of the other products that Nemetschek brings out in the different segments. But I'd like to start with this, so Maxon was founded a total of about 35 years ago before Nemetschek got involved. And the brand name itself, Maxon, wasn't very well known. Cinema 4D, the product, was extremely popular for many, many years. It was used throughout the entire industry. But if you ask somebody what software they use, they use Cinema 4D. They didn't use Maxon or they didn't use Maxon Cinema 4D. So what we wanted to do earlier this year, especially bringing all these companies together, we wanted to relaunch our brand Maxon, so I'm going to kick it off with a video. We like to show a lot of video. So you'll see a lot of videos today. So we're going to start it off with our new brand video. [Presentation]

So that's something we're actually really passionate about. What makes Cinema 4D and Maxon so special is that the -- actually, the original author of Cinema 4D still works for Maxon, he's our CTO. And a whole bunch of other people who have been around from the beginning are still with the company. People are super passionate about what they do and they stay with us for a long time. And as we expanded and brought in other people into the group, we look for companies that share that philosophy. So if you look at Redshift, when they came into the company, they're still have the original people who created Redshift. Red Giant has similar -- many of the people who started the company as well as Forger. And so with this brand rollout, what we did is showing the coming together of all those companies, 2 of which, of course, share the name Red. And so therefore, we obviously chose that color. But that brand video shows that we're coming together this year as 1 full company, completely together and fully integrated. And so if we look at the time line, Axel mentioned that Nemetschek made the reinvestment in 2018. Shortly thereafter, we brought Redshift into the company in April 2019. It was a spectacular team to come in and join us. We're really happy to have them with us. They make the best -- the world's best GPU render, the fastest, highest quality. We'll talk about what that means in a little bit. But then very quickly thereafter, in January 2020, we merged with Red Giant, which really expands our growth outside of the pure 3D space were just with Redshift and Cinema 4D. But we're continuing to be busy, and we have a lot of support from Nemetschek. So earlier this year, we brought in a company called Forger in February. And just in July, we had a small acquisition in a company called Bang that brings some great 2.5D graphics to the portfolio. So what I'd like to start doing -- normally, we'd be in person. Normally, we'd be in a room where I can lower the lights and turn up the speakers. But what I want to do is show you a video of what our artists create, and hope that you enjoy that. Please turn up your music, if you have it. Hopefully, the video will come across [ okay ]. [Presentation]

So hopefully, that came across okay, and you enjoyed that. That's a sample of all of the artwork that's -- where our products are used. And the joy I have in working with Maxon or working at it as my career is to work with the amazing, creative people who make those -- that are possible. And when we grew Maxon, we wanted to grow beyond just Cinema 4D. We wanted to grow into the entire post production pipeline, and we wanted our artist to be able to create in all dimensions. And that's not how we look at the world. And so when we put all of our tools together, we have a complete group of tools that allow you to do more than just 3D. You can go through editorial, composition, 3D rendering, sculpting. And so we give our customers an entire package to work with. And that's what's really throwing our growth through the roof is that we're able to put a whole bunch of stuff together, and make it more valuable than just any one product and then make all those products work very closely together. And so what do we actually sell as Maxon? We've been really focused this last year in introducing our new subscription line, which is Maxon One. And Maxon One is what you subscribe to, and it gets you everything that Maxon makes. It gives you all the stuff that you need to make those videos that we saw at the beginning there. And I think the funding is -- I'm 100% confident that everybody in this room today who might not know exactly what Maxon is or Maxon does, will recognize something that was played in that video because Maxon is used all over the place. If you turn on your TV, if you watch a movie, if you watch sports, Maxon One was used to create something in what you watch. It's really that pervasive. It's everywhere. So Maxon One includes all of the core products that we talked about, which is: Cinema 4D, our 3D toolbox; Redshift, our GPU-accelerated world-class highest-quality renderer in the industry; Red Giant, our tool set that allows you to work with any other software in the industry to bring 2.5D further into the 3D pipelines; Universe, which is our product for making better editorial and better motion graphics; and just in October, in another week, we're going to be adding Forger to Maxon One, and everybody who subscribes to Maxon One will also get Forger, which is an industry-leading sculpting application that's available in the palm of your hand using an iPad. So that's not everything that comes with Maxon One. With Maxon One, we also deliver continuous value. The goal of any subscription offering is not just get someone a piece of software and let them use it, but is to give them a piece of software and a whole bunch of tools and update it constantly so that every day when you come to your subscription, you're getting additional value. So we offer Capsules, which is our collection of amazing assets that we'll talk about in a little bit. We offer Cineware, which is where Simon's expertise comes in. Cineware is our online training and learning portal where we have the best examples of tutorials and ways you can do things you've never understood before, how to use our products. That's all in Cineversity. Cineware is our integration into the rest of the industry. We'll go through the details of that, but that's where our partnerships come in, where we work with Adobe and Unity and Epic. And we're also now introducing some additional products on the iPhone called Maxon Moves. And Moves is the tool that integrates with augmented realities that you can capture your face or you can capture an object, and we'll show you some examples of that as well as we go forward. So Maxon One is all of this together. And when you subscribe to Maxon One, you get all of this plus all of that learning and integration with other parts of the industry. So if we look at each of those products, Cinema 4D is our Swiss Army knife for a 3D application. It was the birthplace in Maxon and the authors are still here. And the idea from the beginning was to take something very, very complicated, which is 3D and motion graphics and make that very easy to use. And that's why it's become such a staple in the industry. It's because you can do very, very amazing motion graphics that are used in broadcast and motion pictures, and games and scientific, all those places. But it's actually something you can still use and actually learn quite easily. It's very approachable. Redshift is a renderer. And that in itself is a bit of a complexity. But when you look at some of these examples, what our renderer does is take -- if you were to draw a cube on a piece of paper with your pencil, you would see a cube, and it would look kind of 3D-ish. That's what you would do in Cinema 4D. When you want it to look real or inspirational, if you want to see the whiskey in that bottle, or you want that at Axe Deodorant to look like an actual bottle or in fact, volcano to actually look like it's on fire, you need a renderer, and that's what Redshift is. And it makes it photorealistic. It makes it super high quality. It makes it engaging. And traditionally, any one of these things might have taken 30 minutes, an hour, 2 hours for a single frame. Redshift changed the industry by bringing that on to the GPU. And all of a sudden making this really fast and easy to use and make it that you can be more creative by doing things much faster than ever before. In fact, we just announced Redshift RT, which is an even faster version of Redshift that just went into beta testing in September. Red Giant is a collection of tools that you can use in other postproduction suites. So you might use these in After Effects or Avid or Final Cut or other tools that you would have heard inside of conversations around the media and entertainment industry. So it's a group of plug-ins. There's 100-and-something plug-ins. Simon will probably show every single 1 in depth. And they're used to do things further than you can do in those traditional tools. So we call them 2.5D plug-ins normally. They're taking 3D concepts and allowing you to do them in a traditional 2D workflow. And they're made up of Trapcode, which is the beautiful particles and special effects you're seeing on the screen right now. We also have the VFX Suite plug-ins, which allow you to do special effects for film and TV, and makes it easier to do extraordinarily complex visual effects and makes it more engaging. And these are all examples made with the VFX Suite. That includes Supercomp and Optical Glow, and we just released Bang into this suite. Magic Bullet Suite, I think everybody has probably heard when they go to your local TV store that everybody should be buying HDR televisions as color becomes more engaging on your phones and on your iPads. And on the television that you watch every day in your living room, you need tools to make that color look spectacular. We all noticed that when we shoot something with our old VHS cameras for that old -- that it didn't look as these examples do it here. And that's because we're not colorists. But Magic Bullet makes it so that everybody who can edit a video can become a colorist, and that's what you're seeing there. Universe is probably one of our most popular products, and that is a set of plug-ins in almost the reverse case. Often you use it to take some really beautiful footage and make it look older because that's the feel that you want. You want it to look like a VHS tape, or you want it to have some really fancy special effects or you want it to be torn or -- all the different things you're seeing here. And Universe works inside what's called the editorial suite. So where a video editor would snip and cut movies together is where you traditionally use Universe. And finally, Forger, the most recent application we've added, Forger is a new version of a sculpting application. And sculpting is where you would traditionally sit on a computer. Obviously, it comes from the actual art of sculpting. But in this case, you'd sit on a computer and design new characters and new creations in the software, Cinema 4D, and sculpting. But as Apple's really changed the world with the iPad, there's 4x as many iPads in the market as there are Macintoshes, and sculpting really lends at something -- work where you actually want to touch it. So when you pick up an iPad and your Pencil and Forger, you can create this artwork using an iPad and then integrate it into the post-production workflows with Cinema 4D further. So Forger really gives us an access to an even greater market and in a very interactive market because people will be holding and touching their sculptures. So who are the people using these products? Who are our customers? That's obviously the biggest question and the most important. And so we made a very concerted decision here, and it's not like other people in the art industry. We focus very specifically on the Media & Entertainment segment, and we break that into 3 subsegments, and that is the 3D DCCs. Those are used for creating content for gaming, for broadcast, that your TV stuff, that your [ Sky ] supports, visual effects, visualization. And this is the top end of our pyramid. It's where we started. It's where we probably still have the most of our technology. And it's probably the smallest segment at this point in time. It's going to get bigger every year. But of the Media & Entertainment segment, 3D is probably the smallest. But that's changing rapidly as everybody is expecting 3D to be a core competence. As we brought in Red Giant and other products into Maxon, we've been able to move down the pyramid until we include compositing into that. And that's when you're taking multiple pictures or multiple videos and make -- bring them together to make 1 composite output. So as an example, I think if you looked at the introduction today, you would have saw Stefi and Axel had a virtual background, where Simon and myself don't. And part of the reason we don't is because in compositing, to do that, to make that virtual background, you would have to use something called KEEN. That would be a typical compositing workflow. And the KEEN in Zoom, this isn't up to our standard yet. So we feel inadequate if we use the Zoom KEEN. So compositing is when you're putting people into other scenes or mixing things together. And that's where Red Giant really plays a strong role. And then the biggest segment in Media & Entertainment is editorial. And that takes the output from the compositing and the 3D software and puts it into a time line and tells a story from it. And that's where Universe plays. So we play in each of these segments, and we're expanding out in each of these segments. But with that in mind, we also pick a customer segment that's very important to us. They are the highest in professionals. They are the ones who make the most spectacular explosion in the most specialty Marvel movie or whatever. And we do have people who work there. And it's amazing, and we love them, and we actually -- Cinema 4D actually got a technical Oscar for some of the work it did on the Marvel movies, but it's not our key target because there's actually not that many people in the world that do that. There are many, and a lot of them do use Cinema 4D, but we don't put in laser focus there. At the same point, when you download Instagram or Twitter or Twitch or a TikTok, any of these, they have millions and billions of users. And they're doing basic media entertainment workflows. They're putting special effects on. They're putting motion graphics on there, but they're not paying anything. The market down there is all about advertisement. And so you just do something quick and easy, and it's fun and enjoyable, but it's not someone who's sitting down to work with creative intent, who wants that to be their professions. So we've really focused on the broader professional, the people who sit in TV stations, magazines, ad agencies, post-production houses who want to create the highest quality, most amazing content, generally in the motion graphics space, who are willing to pay for the quality of what they're going to create, and we call those the broader professionals. And that's really where we focus. So we're on the broader professional, and we're focused on 3D, compositing and editorial. So what are the market segments at play as opposed to the product segments? We actually are used all over the place. This talks to the growth of 3D and 2.5D in the industry is that it's used from huge amounts of the market. But let's go through a few of the ones that we're going to see and explain them a little bit. So motion graphics, that is our biggest and most popular that are most successful. And motion graphics is design that has movement. It's a motion design. So you see here an advertisement for a shoe, a Nike shoe, that would be used -- Cinema 4D would be used to make this. So with Red Giant products to be able to make this. So any time you're seeing something on TV or doing sports and it looks something like this, you're likely looking at something from Cinema 4D. It's our biggest segment, and that's motion graphics. Visual effects is what you see in movies. So if you're watching a great new Netflix series or you're going to the movies, you saw the new James Bond movie recently, I'm not sure, anything that allows the user to sort of -- into the story and leave reality as we know it, and experience something new and exciting, that's where our products are used. They used to create all the things you've seen on the screen right here. These new heads-up displays that are futuristic and different, whether it's a building collapsing or muzzle flashes on guns, spacecrafts flying around, that's a visual effects segment, and we're used very heavily there, especially with Cinema 4D and the Red Giant plug-ins. For games and interactive things. So I don't know, if we go home and play games or, if our kids are playing games, you also want to suspend reality and you want to experience something new and exciting. And so our products are used there for animating the characters or for the intros and the motion graphics that you've seen on the screen. So we're very much used to create the graphics you see in games. And throughout this time, I'm going to talk about creation because we focus on creation, not the games themselves or are not playing back 3D content. We focus on creation. All of our tools allow you to create better content. Art and design. It's been an interesting year for this segment. This segment is changing rapidly around us, if people have seen any news. But we've always been used in the design space and advertisements and magazines. For shoe, for car design or car magazine advertisements, they would be using our products to make them more realistic. But this year, there's been a major change. If you've heard about NFTs, which are non-fungible tokens, this is a friend of Maxon's people. He's been a long, long, long time user of ours, and he comes and speaks for us at shows and is -- come to help us make our products better. He hangs out with us. And this year, he sold his Everydays art project, which is something in every single day for the last, I don't know, many, many, many years, he's created a beautiful design mostly in Cinema 4D. And he put them all together and made a non-fungible token, which is in this cyber currency, Bitcoin, blockchain space, if you want to go read about that. And he sold his artwork for $69 million, which is, I think, the largest sale of an artwork for a living artist, and that landed him on the cover of Time Magazine for changing the entire future of business, showcasing Cinema 4D. So he's an artist who uses our tools to create his artwork, and this is something that's really changing right now in the industry, and we're seeing more of this. Unfortunately, in the last 2 years, this is also an area where we've seen more growth than we probably want in scientific and medical imagery. It is actually quite often used in Cinema 4D to make [indiscernible] atoms or molecules or whatever. And so it's used quite heavily in that segment as well, and it's a very interesting place to go. Hopefully, everybody still hears me. I'm seeing a little bit of a warning about my Internet connection. Hopefully, it's going to hold up. Live events. I guess on the counter side, this is maybe something we haven't been as involved in the last 2 years. But when you go to concerts and theater and going to outdoor shows and things like that, all of the fancy designs that you're seeing need to be made. And we actually play a pretty big role there, and we've been involved in a lot of great concerts and productions into some great city art events where they use our products as well. So there's quite a lot of use across the industry in various different ways. And of course, this is the reason that Nemetschek originally invested in Maxon, and that is in engineering and architectural visualization. So Nemetschek knew that the world was changing and that it wasn't just enough to see a hand-drawn architectural drawing or a 2D version of a new house that you're going to build. People want to see them realistically. And so Cinema 4D was originally brought in to Nemetschek to make those visualizations more engaging and more realistic. And so we obviously have actually done quite well in this industry, and we're used all over the place. And when we're seeing some of the funds that we'll talk about in a few minutes, Vectorworks recently included Redshift as the renderer of choice to make Vectorworks' renderings look even higher quality and faster. And Graphisoft will be releasing their version with Redshift in the coming weeks. And then, of course, and this is probably the one that more people talk about, but not really many people know what's going to happen, and that is the realities. That's augmented reality, mixed reality, virtual reality, these are all fancy terms. And the idea is how do we take 3D and virtual worlds and mix them together or engage in those in a more interactive way. And it's very, very, very early days for any of this stuff. But there is a lot, a lot of people talking about it in the industry, and we're sitting right where we want to be in this space. So in the last 2 keynotes, Apple has been talking a lot about how 3D is going to change the world. And to do so, they've been focusing on Maxon and our workflows. So here, you're seeing some technology that Apple developed that we've included in Cinema 4D that allows you to take photos of objects and, from multiple sides, you take 30, 60, 80 photos. And then you can bring that into Cinema 4D and it turns it into an object that you can work with. And that reduces the complexity of one of the hardest things, which is how do I go from nothing to a 3D model. You can now work with your iPhone and Cinema 4D, take a bunch of pictures and you can get started right away. And I think Simon will show a little bit of that as well. So what makes Maxon special? What separates us from the rest of the industry? And I think the first and most important, and I talked about it a little bit today, and that is the Maxonians. The people who work here. We have artists working at Maxon who use our products every day to create the content. We have the original ideas behind the products still working here, still wanting to make those products amazing. And every single new person that comes in to Maxon has the desire to change the world through creative expression. So they want to work on the products that change the way we look at movies, and theater, and TV, and all these artworks. So they're all very, very passionate, and they get to design the products the way they want to, to create this new world of content that we're seeing when we watch TV every day. So we really have a company that's driven by artists and the engineers making the product that you're seeing today. And then we're really fully focused on this segment, and that's kind of unique in our industry. There's a lot of companies that do things, but they usually have a whole bunch of other businesses on the side, and Maxon is fully focused on these products. And with that, those Maxonians have created extraordinarily powerful tools. You can see that you have the highest quality content that you watch in movies are created on a laptop or on a desktop just using Maxon One. And you can get started really fast, and you can change the way you've been able to create things and go from a 2D workflow into a 3D workflow quite easily. And that's always been a staple. And when we look at bringing companies into the mix, we want to make sure that the products that we're creating are easy to use. There is a lot of tools in the industry that are very, very complicated to use. You can do the most powerful things. But our products can do that, and they're easy to use. And that they're joyful to use. They bring a smile to your face. And they engage you to be more creative with examples and sample assets and presets that you can use to get started. And Simon will show you how easy it is to use our tools in a little bit here. And so like I said, our tools now span the entire creative pipeline. And this is the way we look at this. So traditionally, Cinema 4D only existed in the 3D space, but through building out new tools within the Maxon One product line, acquiring new tools, combining the tools together, we now can [ span ] the entire post-production process, from previsualization to 3D to composition, all the way on to editorial and so that our products are used throughout the entire creative pipeline. And if you use our products together, they're going to make things easier for you. So you can take a Cinema 4D object and put it into a Red Giant scene inside of After Effects, where you can take the sculpture that you did in Forger and bring it directly into Cinema 4D, and all of that is rendered with Redshift. And so we brought in all these tools that have the same philosophy for how we create them and have our hardest work on them. But we also made them work together, and we brought the most passionate people together to give us an entire tool set for the entire post-production industry. So finally, the final thing I want to talk to is what are we focused on in the next year. As you've seen that we've gone through some extraordinary growth and that enough is keeping us busy. We have a lot of new customers coming in every day, and we want to make sure they're happy and passionate and making the creations that they want. But we also have a very strong focus on what we're going. So I'm going to talk about 3 specific things that we're going to work on in the next years that will keep us very busy. The first is a term we put around our asset strategy, and that is the term we use called capsules. And so what I mentioned is when you want to sit down in front of Cinema 4D and you want to make a car or, you want to make a plant or, I have to sit down and make this stamp, let's say we wanted to do that in Cinema 4D. You would start with nothing on your screen. And that's really a frustrating problem. We call it the blank screen problem. How do you go from nothing to a 3D object? And this is the same if you're using an editorial software to make a movie or, if you're trying to put together a composition or, you want to do the color grade on that movie you just shot, you want to get started with creative inspiration. And so we bring gigs and gigs and gigs of cool things in our Maxon One subscription called Capsules that allow you to get started faster. So we have a whole bunch of 3D models. There are trees and there are cars, and there are people walking around and motion capture that we actually went out to a theater and captured. There are the muzzle flares that you see on a gunshot. There are preset that give you choices and how your color should look. There are materials that you're going to put on objects when you're using Redshift. Some of them are really smart objects that you can see here where, you say, I just want to be able to make a city and I want the city to sort of feel similar, but I don't want to design each building myself. So we can give you a smart capsule that allows you just to say, I want 4 stories, and I want it to be 3 stories deep and you have a slider. And then this really complex thing becomes easy where you just say, I want it to be this high in this slide, and all of a sudden, I can create a whole city very quickly. So they start from very basic models like a tree. They go on to very complicated things here like building and landscapes that you can create automatically. But when we work with Apple together as one of our partners, now you can actually create your own assets by taking photos of objects and bringing them directly into our Capsule browser and start using them wherever you want. So we're going to be investing heavily in this. So every month right now, if you're a Maxon One subscriber, we're giving you additional models and samples, and HDRIs, and materials, and all these really complicated things that give you more creative tools. And so every month, when you log into your Maxon One account, there's more fun stuff to play with to inspire you to get your creative projects started. And a lot of other companies are charging for that. We decided that it's just a great idea to give those to our customers. So we have a team of people working on these. And every month, you get additional stuff. And so we're going to continue to make it easy and fun to create new content with our Capsules. The second main focus is Redshift Everywhere. Redshift, when we acquired it, was the best, highest quality, fastest renderer if you were using a Windows machine with a modern NVIDIA GPU and CUDA exactly the way we want it to use and not much variation. And so we've been working really closely with the Redshift team to make it so that no matter where and how you want to create 3D content, you'll be able to use Redshift. So in that time period, Redshift is now available on the Mac. And soon, we're bringing out on AMD computers, on Windows and you'll be able to run on any computer that you want to. We also bring Redshift, not just into Cinema 4D, but Redshift is used inside of Maya, 3DS MAX, Houdini, even Blender because we believe that it's best and highest quality renderer out there. So if you're going to make realistic renderings, you want to use Redshift, and we're going to bring it to you no matter where you're creating content. So Vectorworks is part of this story. And last month, they included Redshift in Vectorworks. When you're making your architectural renderings in Vectorworks, you're now going to be using Redshift. And Redshift will also be included in Graphisoft in November. Two of our sister firms want to have the highest-quality architectural rendering. They'll be using Redshift as well. So we're going to be talking more about this in the next year. There's more stuff coming, but we will be focused on making sure that anybody who makes photorealistic or realistic renderings will be using Redshift no matter where they do that work. And finally, and most importantly, no product in our -- in the M&E space ever is used by itself. No matter what you look and create an output, you're going to see multiple tools. You might see Photoshop, Illustrator and Final Cut and Avid, all from different companies. And the challenge for all of us is to make the tools that our customers use work in the world around us. And with that, we talk about a technology called Cineware. And Cineware is already released, and it's already been in After Effects for years. I mentioned it being an Allplan, Vectorworks and ArchiCAD. And with Vectorworks and ArchiCAD, they also use Cineware to include Redshift. But we've recently partnered with Unreal, with Epic and also with Unity to bring 3D models from Cinema 4D directly into Unreal, as an example, or even Magic Bullet. Look, the color grading I talked about, we can be using that in some of Unreal as well. So it's just another place where our tools can be used. So if you created that city scene that I said as a Capsule, you could bring that into Unreal. And while you're working on your game, you can be changing those settings directly in Unreal without having to go back to Cinema 4D. And you can take the content that you create in the Maxon tools and use that in all other stages of the pipeline where you might be using a different tool. So Cineware is extremely important. We partner with all sorts of great companies on it. There's more people using Cineware than are listed here, and it's how we take our work and bring it to the rest of the industry. So with that, I've talked a lot, and it's probably relatively abstract. But Simon is going to take a few minutes here and actually show you how some of these tools are used, and how easy it is to create amazing content. And then we'll come back and we can do a little bit of Q&A. So with that, I'd like to introduce Simon Walker, who is a dear friend. I've had the pleasure of knowing him for a very long time, and he is quite a name in the industry for his ability to train the complex easily. So he's going to try that today.

Thank you, Dave. All right. You need -- that's it. I actually shared my screen. Hello, everyone. My name -- as Dave said, I'm Simon Walker. I'm Head of Training and Learning at Maxon. But there's a couple of things that Dave's been mentioning that I think are key, one of which is we'll get on to the product stuff very, very shortly. But the Maxonians thing because it's not just me, it's a whole team that we train the customers and we help people learn stuff more quickly. So I just wanted to give credit, some of the things that I'll be showing today have been put together by me, some by the team, but there's really that group of people that make this happen for us. And so about the products itself, they've said -- I wrote it down, in fact, they engage you to be more creative and make it easy and fun. And that's exactly what I'm going to show you, I'm going to pick out some of the key things out of more than 130 products that make it easy to be creative and are engaging as fun. So let's just have a look at this. I'm in Cinema 4D now. I'll start with a few Cinema 4D examples and then key up some things from Redshift and also from Red Giant as well. But here we go, here's a scene, a very simple scene. And this is one of the things that Dave also mentioned. How do you create something when you're just going to build it up yourself? And the key thing is that inside the asset browser, we have many, many gigabytes and thousands and thousands of objects that you can search through. So let's say, I want to add some chairs into the scene. You can just type chair. And you've got a whole range of them. And -- but the nice thing is this technology inside Cinema that makes us easy because we can use a placement tool. That means that you can just drag a chair into a scene and then it's automatically placed in that location. So I can -- in fact, I could just like command drag and make multiple ones of them. Let's just make multiple chairs here. Let's just turn on to the rotational area here. And there we go. So we're beginning to populate the scene. But the other interesting thing is that you can then duplicate those things even more easily. So let's just jump over into asset browser. I've got some favorites here, and I just want to drag a cup and saucer onto the table. I'll go back into my placement tool, here we are. So drag that on to the table and zoom in slightly. Now the thing about this is that these placement tools allow you to place it anywhere. I can place it on the floor, I can place it on the wall, anywhere in the scene tool. I could even place it on the lights or above. So you don't have to worry about things intersecting. So when you're an artist and you're doing 3D stuff, you are worried about iteration. So that if you cannot let the software get in between you and your creative design, then you're going to do more things more quickly. So in this case, let's say, I wanted more of these items on the surface of the table, I don't have to manually click those and add them individually. I can use tools like the scatter tool. And I can just click and drag and make as many of them as I want on the screen. So we're just thinking about the process as you're going forward. And if you change your mind, you can just delete something. And in fact, what I'll do here is I'll just show you. If I wanted to get some -- let's see, I want some apples on the table here. I'm going to switch on my apples that I created early on. And you can easily just select these as a group. In fact, let's just add something, so I can put these into an item. I got to grab a bowl here, and let's grab this bowl. And if I go over the placement tool, I could just plunk this bowl down on to the table here. It doesn't move around, size it up and so on. Let's say your director comes in, and he said, "This is great, but we need you to put these apples in the bowl." So it's very simple, just select these items and you can go into -- here we go, go into a mode where you can select multiple things together, let's just zoom in slightly here, and then you can collect those. You can bring them all together as 1 series of objects. Notice here how, by the way, how they're not intersecting. They know that they're in 3D space. And here, in this case, I'm just going to drop them up and move them over above the bowl roughly. And because inside Cinema, there's so many nice tools that we have things like physics in here. So I could just drop these apples on to the screen here. I missed the bowl slightly, but that's the beauty of this because you're not having to place these things manually. You can use the physics engine inside the software to actually make this more realistic, if you like. So you're not having to spend time figuring out where to place stuff. You can use the tools and the software to help you work more quickly. So this is just 1 example. And it's -- in 20 minutes, I'm tempting to go into every particular tool and show you how much depth there is, but I just want to give you a brief overview of things. So mentioning this physics aspect inside Cinema is another very popular thing that we need to do all the time, which is working with text. And as a graphic artist, then you have to be thinking about how you can communicate things to your audience all the time and also gaining their attention. So in this case, I've got some concrete text here. And one of the classic things is to use the physics inside Cinema just to -- let it -- set it to crumble. There we go. So that's the sort of thing that you think looking at it, that's actually visually quite complex. How do you set something like that up? And it's actually really, really easy. Inside Cinema, we have a whole series of motion graphics tools. And one of these is a fracture tool, voronoi fracture. And what it does, it allows you to set up easily how many segments you've got. And in fact, if I just click on colorize fragments here. You can see these segments. These are the segments that are breaking apart when you just press play because the gravity is automatic. But what if I wanted to increase the number of segments? So here we go. Instead of 30, I'm going to type in here, 200. And I'll also turn off the colorize fragments. You can see all the fragments here. You can see how they're set up. You can see this is now 200 or so. But if I just jump in here and I turn off the colorize and then just press playback, then we've got a different type of crumbling. And this isn't 3D, don't forget. So this means that you can create these things really fast and then think, "Is that the right sort of crumbling I want?" And then take it to the next step, if you like. So what if you have a sphere in the scene. And this is something I'd set up earlier on, and I can, instead of setting these to crumble automatically, I'm just going to click on voronoi fracture. And I'm going to choose this little drop-down, which says under the dynamics rather than triggering it immediately, I'm going to trigger it on collision. And this is the thing about the layout. You see I haven't really talked much about the UI, but it's a very intuitive software to use and all the controls are immediately available. So you're not thinking where is this thing hidden. It's very easy to just -- instead of that, I'll set this to be on collision, press playback on my time line, and now I can have lots of fun just smashing things out of the way with the sphere. And you can set this sphere to be invisible and still smash through. So it's very interesting and fun. I know work is not supposed to be fun. Actually, it is for us. But it's a really great way of just being able to set things up and play around with the sort of effects that you want to communicate to the audience. And by the way, in training sessions, this is a bit where you set this up and then you just walk away for half an hour and just let everyone have as much fun as they like, playing around with smashing these things around. Cool. So talking of physics, connecting some of the items as well. You can use this physics to actually set up like proper ads. This is an ad put together by [ Ellie ], one of the members of my team to demonstrate just this. And here we go. We've got the ability to take a logo and just automatically get the physics to help drop down these lemons. When life gives you lemons, you make a lemonade soda. But what I wanted to point out here is something really useful in terms of connecting the software together. Because as a designer, let's say, you created this logo in Illustrator, and here, we have this exact logo in Illustrator and it has strokes along the edges. And in fact, let's just show you this. I'm starting from scratch. So the other key phrase Dave mentioned earlier on, which is starting from nothing. And if we just start with this -- here it is, there's lemon, I can just go in here and I can just drag that into Cinema. And immediately, here we are in Cinema and there is this 3D element. In fact, what we'll do, if I go into this element itself and just extrude the depth slightly, you can see, I've just -- I've done nothing except drag it into Cinema. So you could be working in Illustrator or you could accept this file from one of your colleagues. And it takes those strokes and they show you that turns them into geometry and colors them in those same colors as you had set up. So that's a really interesting thing. It's not getting in the way of your creativity. You're able to branch in between different applications like that. And one of the other thing, core things, about making 3D is that you want to see what it looks like. So in this case, we've got a good 3D representation of what it looks like. But traditionally, you have to then press render and render these things for a number of minutes so that you can see the photorealistic or the creative vision. And that's where Redshift comes in because Redshift makes this super easy. So if I turn on the Redshift render view. In fact, let me make some space on the screen here, so we can see the whole design. So if I turn on the Redshift render view, here we go. Instead of having to wait half an hour, go make a coffee and so on, you've instantly got the view of what it's going to look like in Redshift. And this is the power of not only the coding of it and how it's built, but also the fact that it sits on the GPU. And you can do things like you can change like -- I'll just scrub through the playback here. And so we're just looking at different frames in the scene. And instantly, I can see what it's going to look like. I can see what these lemons are going to look like once they're rendered. So that kind of real-time feedback means that you can do multiple iterations. You can work with the creative team. You can take direction from the art director, so that you can change stuff, and it's not getting in the way of production. So in fact, let me show you how you can build this up on a particular scene. So let's swap over to -- here we go. Here is a scene where -- which obviously is in 3D, but isn't rendered. And if I add Redshift here, I just want to quickly show you this easy-to-use aspect. If I turn on Redshift render view here. And then we'll see what the scene looks like. And I can turn around -- here we go. I can turn around in 3D space as I'm updating the scene, I was zooming in, this updates the render. So we're seeing in real time what it's actually going to look like. But one of the hidden -- well, it's not really hidden because it's famous for it, but one of the key values inside Redshift is the ability to manipulate lighting. And lighting is at the core of rendering. So what we can do is we can go into Redshift. We can add a light, let's add a dome light here. And instantly, that dome light then causes the scene to update because then you can see it's beginning to look much more photorealistic or much more stylized in the way that you want it to look. And then you can go on from this. You can use it back to the Asset Browser, where we were talking about all those thousands of different assets. We've got the ability to search through, let's search through an HDR image. So this is a wide gamut, high-resolution image, which has the ability to -- here we go, let's choose this one, has the ability to light the image or light what you're seeing. So in here, we've got a spherical image. And I want to use the lighting values of this captured image inside our scene. So in terms of easy to use, all you have to do is just drag it into the texture, and then that immediately updates. And so that is the power of it. It's the real-time update and ability to just quickly drag things on top of each other to be able to then create stuff from nothing. So the -- in fact, this is -- I would say, this session is reverse training because what we usually do, we lead people through how to create scenes. But in this particular case, I just want to give you a quick overview. So we've looked at Cinema. We've looked at Redshift, and I just want to show you some of the other tools that complement them in the postproduction area. So we've looked at being an artist, a 3D artist creating things from scratch and then perhaps working with the rest of your team who have to embellish things and create particles, for example. So let's jump over to After Effects where I've got here Trapcode Particular setup. And this is where it lives inside After Effects. After Effects is one of those programs that sits on everyone's desk in postproduction, and this is why Red Giant is so hugely important to them because of the 100-and-so tools that Red Giant provide to actually make things a bit better. And the core concept is that these tools are incredibly powerful. So inside Particular, we've got the ability to make particles. This is the default setup. And in the effects controls panels, there are more than 2,000 individual settings. But we know that you're a designer. We know that you want to get on quickly and create these things. So instead of having to sit through that whole panel, we created a visual interface for this. And that is the designer. And so that looks like this. So the designer that gives you the ability to be able to create things from nothing. And it's the same controls as you've got inside the main interface. It's the same physical controls but in a much more interesting, unique -- or a much more interesting visual way. So you can change things around, and I'll show you this in a second how you can create these particles from scratch. But one of the key things, just like the Asset Browser, inside Cinema 4D are the extensive presets that you have in the designer. And the designer exists in multiple tools in the Red Giant product range. And I just want to show you something here. Let's say you had to create standard things. You need to create fireworks. You need to create something from scratch. Then this takes into consideration not only the look, the color, the animation of the particles, the gravity, this instantly gets you set up. So you can do this without having to think about, well, how do fireworks work? How does the gravity? Do they have smoke? Do they dissipate in the wind? This is already set up for you in many cases. So here's a practical example. What if I needed to create an easy background? I'm a designer at a broadcaster, and many of our media and entertainment customers are needing to do these things in a few minutes at a time. They just got to create something quickly. So in this case, I'm going to grab something from the nature presets. I'm just going to click on autumn leaves, and I've got a whole series of leaves set up. And they're flowing across the screen to the right. I don't really want them flowing that way. So I'm just going to reset, easy to double-click and reset things. Instead of just collecting in the middle of the screen, I'm going to set them to be a -- fill the screen and then increase the emitter size, here we are. Then I'll increase the number of them, particles per second, might increase their size ever so slightly. And then we've got physics built into particles as well. So inside the environment, I might add some gravity. So they're now flowing down the screen. I might also then, inside the simulations, enable meandering, which just gives a little more of that reality to particles. Like if you all look -- if the next time you look at leaves falling, here's your homework. Don't go and see how leaves don't just fall down, they meander. There's air resistance. They -- and the same happens with snow. So it's these small details that help sell those particles to the audience. And if I click apply here, everything I've done inside this interface is actually inside After Effects on the time line. So you're able to take those presets and make this into something which then you can practically use really quickly. A couple of other practical things. Whenever you think particles, you think pixie dust. You think fire. You think smoke and steam. So let's just look at this. If -- what if you are a designer and you had to create some steam or some smoke? So let's say some steam coming off the coffee cup. So we can jump into the designer. And it's really quick just to be able to set this up. And there are tools in there to be able to speed this up. So I'm -- indulge me because I will make steam in 90 seconds with you. In this case, I want to have a cloudlet particle, which is a bit more steamy. I'm going to increase the size of this somewhat considerably. I'll make it emit from a sphere rather than a point, and then I'll make these fade in, fade out using one of the presets on the tools. So even the tools have presets in Red Giant land. And then I will reduce their opacity to be really small here and increase the number of particles. Here we go. So there is some steam generally evolving. So it didn't take 90 seconds. It took 30 seconds. And one of the other next key things you can do is you can then add simulations to it. So I'm going to enable fluid motion. A fluid motion gives you the ability to use real-world physics on your particles. So let's just move this towards the right here, just to show you this. So what we've got here, let's increase the number of particles so that it's a bit more visible, we've got the ability to use these simulations to actually manipulate those particles and make them flow with those eddies and those vortexes that you would associate with steam. So it makes it really quick to make something. And in this case, here's the result of doing this. Let's show you here. And so this is that same steam inside a coffee cup. And many, many graphic designs I know get to work on really great amazing imagery. And then sometimes they just have to create something which is animated in the background because also, next time you watch a Hollywood movie, notice how no one actually ever has any liquid in those hot coffee cups. They're empty. So you have to fake this. So it's a standard thing to do to actually create steam on things. By the way, don't drink this coffee because I think this just seems way too hot in this particular case. But as well as steam, you can then use that same concept to create other visual effects. For example, this is the exact same thing that I just set up. It's just got a wider emitter. And it's using that steam to actually -- or rather, it's using the simulations to create this really beautiful kind of cloud effect as if you're flying through the clouds. Now there's no key frames on this. There's the -- in fact, the only key frame is on the camera movement, but there's no key frames on the actual particles. And this took about 2 minutes to set up. And this doesn't have any effects or any postproduction or glowing on it. We're just using the standard particles inside Particular. So it just makes it really easy to visualize things, and a lot of the artists we talk to also have to create visuals for trailers, for movies. And sometimes, if it's themed with the sky, they have to come up with clouds like this. And so being able to do this really quickly is very -- engages their creativity. So let's -- talking of creativity, what if you want to take this another step further? So let's just have a look at this. We have a technology, which was introduced last year, called Flocking, and that's basically intelligent particles. So what we can do, we can tell the particles to be aware of each other. And inside, the quickest way to show this is just to jump into the presets and just go to the -- all these different areas, explosives, dust and debris, here we go, Flocking. So if I choose one of these examples, if I choose this one here? Right. What is going on here? So we have -- let's just rotate this around back here. We have 2 blocks, if you like, or 2 grids of red particles and blue particles. And the red particles are firing particles at the other block and vice versa. So what's happening here? We've got a predator and prey situation. So just let me show you this. On the red particles that are firing over to the blue grid, they are set up as a predator. And what's happening is that they are set to kill both the particles that they are firing at and themselves. So the whole point about this is that particles can then trigger events when they interact with something or at the end of their life. So in this case, if I just play this back, what's happening is that all the grids then are attacked by these other particles and then they disappear. Great. What if you don't want that to happen? What if you want to change this and you, let's say, just do nothing? That's for these red particles going over to where the blue are. So then we'll do the same thing again, and what happens is that the blue particles aren't affected because we said do nothing. But then the red grid disappears. So you can be creative with this, and this is the core concept. I'm going to show you something visually in a second leg that is much more useful. But I just want to get used to that core concept of things because then you can create all sorts of really interesting things like this scene. So this was created by one of our members of our training team, Hashi, and it shows exactly that same concept. You've got those -- instead of the blue grid, you've got a grid of Space Invaders. We've got those particles that are firing at each other, and that's what the squiggly red laser beans, if you like. Notice the dust here or the smoke trails. That's exactly the same process that I just showed you about how to create smoke particles. And in fact, talking of games production, a lot of game productions are made using Particular as a design to see how these particles are going to look. But once they're in the game -- and also as assets. I know one game developer who uses dust assets as sprites in a game so that they can be triggered when an event happens without actually having to use up CPU routines as people are playing the game. So there's a number of interesting different ways where our tools are being used. But here's that thing I wanted to mention that as and when these laser beams hit the Space Invaders, they trigger another event, in this case, another series of particles, which is a mini explosion. So that's the sort of creative thing you can set up really quickly in terms of creating a scene. But what if you wanted to do this with just motion graphics, you want to set something up with text? Let's just jump in here. This is a preset that is in Particular, and it's the same concept. We start with a 3D model because you can use 3D models inside a Particular and use cinema 3D models. I'm going to show you that in a second. But in this case, this preset just has those particles eating away at that 3D model. In this case, it's a sphere. So what I want to do here is jump into the designer and show you how easy it is to then turn this into a really interesting title sequence or a text sequence, if you like. So we've got this preset, and here it is, down here, it's called sphere string erosion. But instead of having this preset, let's just rewind it here, I'm going to take a couple of these items, here we go. So if we look at these different systems, instead of that primary system, I'm going to change that sphere to be -- let's change it to text. And in text, I'm just going to jump down on the actual text itself and remove the middle density for the faces. And so we could just see the outline of the text. And now what's happening is that instead of eroding the sphere, it's eroding text. And if I press apply, then that applies it to the time line. And we can see this on the time line here. So within a few seconds, I created a possible title sequence that could be added to one of the ideas, maybe you're putting together a mood board as a designer. Maybe you're an editor, and you just need something as a placeholder. This might become the end design. But it's just really quick to be able to create things, which are more interesting than just blank white text. Right. Just thinking about that thing I just mentioned, which is using 3D elements from Cinema inside the rest of the Red Giant tools. We can do this very easily just by clicking buttons, here we go. So Cineware is the main technology, as Dave mentioned, that we can use to actually communicate between the different products. So here in 3D space, I've got a series of grids. Instead of those grids, I can use a 3D model to describe these particles. And we have a library of 3D models inside most of the Red Giant tools and also the ability to add them from Cinema. So this, let's -- in fact, I see this as a preset just to speed things up, here we go. Here is a car which was created inside Cinema 4D. In fact, let -- rather, show, don't tell, they say in training land. So let me just show you this. If I just jump into a recent project here, I've got a car setup, and this is exactly that same model. So if we take this same model in Cinema, you've got a Save Project for Cineware that communicates directly. And so the same 3D models can then be used. So in this case, we've got this car design, and then we can do all sorts of things to this on the time line. I'm just going to hit apply, and then it applies it onto the time line inside After Effects. And in fact, also, another quick thing. You can do this with animation as well because here is an animation inside Cinema. This is one -- this is something that you can easily bring into Cinema. There's many, many different motion capture elements that we've got as part of the Asset Browser. And just let's do that same thing again, show, don't tell. Here is the animation, here we go, Particular animation -- sorry, Cinema animation. And so that direct animation, you can recognize the movement here, actually then as a Cineware file, can be featured inside After Effects. And the reason why this is useful is because notice the particles that are being emitted as the character moves off. That's the sort of thing you can do. So you can -- you've got your base movement, your base animation setup, and then you can embellish it inside different applications. Notice that we've also got a reflection in the floor here. And that's because reflection is one of -- just one of the many effects inside VFX Suite, which is part of the Red Giant set of tools. And we can set this reflection on or off. We can increase the opacity. We can decrease it. You can be creative with items without having to re-render, without having to let any other aspect get in the way of your creative process. You can be thinking it and doing it at the same time. That's what I like best about this process. And so far, we've talked about the beauty of things and the speed of working. So I just wanted to briefly talk about how you can take things, here we go, here's that car feature, how you can take your beautifully rendered items and, as Dave mentioned earlier, make them look terrible. And that's the joke, but there is a big visual language between the process of taking something and then messing it up. So here we go. Here's a sort of an open -- or opening into Red Giant universe, which has so many different types of effects where you can stylize things. And you can add -- let's say, we wanted a hologram to this. We can apply a hologram effect, and then that can begin to glitch this effect and begin to add scan lines and so on. And then we can do all sorts of messing up and creating something visually interesting, which then suggests the story. And there are more than 90 different ways to do this, 90 different tools inside the universe. And here's an example quickly of the sort of things where you could combine some of those just to quickly create a heads-up display, something that we've seen in the movie examples beforehand. So I've got a couple of quick things before I hand back to everyone just to illustrate how you would then take those and then turn them into something which is composited. Just on the way, I couldn't not mention one of our most popular effects, which is something called VHS, where we can take a beautifully shot screen and then using VHS, just turn it into something from back in the 80s, here we go. So all those complex effects, all the noise, the mismanaged channels and so on and also the edge of the screen, which doesn't quite match up, you can even make this 4 by 3, if necessary, to go back into the 80s, these things are easy to set up with literally clicking a few parameters here. But you're being able to look at your vision as you're doing it. So last couple of things. One -- and one of the key skills, if you like, is to make things sit together nicely. So in this case, we have a robot that we need to make fit in with this video taken from the Angel Island ferry -- or taken from a ferry in San Francisco. This is the Angel Island in the background. And one of the beauties of VFX suite, it has an effect called Supercomp, which layers up your effects, as we can see on the right-hand side of the screen here, and allows you to work visually. So let's say I had to take this robot, and I wanted to make it sit in the background. As a compositor, you'd know that you need to add haze. So we can just -- in that -- so look, this visual tool, all the tools are at your -- right at your fingertips. So we can just click on haze and then add some haze to that effect. And haze takes the image, takes the colors of the background and composites them together. And so you're not having to think about the background. It automatically recognizes the background. The same if you want to do some light wrap. So let's just jump into light wrap and then add some of that environment onto the edges of that character. So that -- I mean, you can see this already. That's taking some of the blues from the background, and it's making it more -- seem as if it's fitting into the background. And of course, no composite like this would be complete if you didn't have a raging fire over the top. This fire isn't very convincing, is it, because this is just placed over the top. If only there were a wonderful series of tools like in the presets inside Supercomp where you could add in heat blur and glow to make this really -- change the background. So in this case, we're changing the background. We're distorting it like you would in a heat haze, and then you can add in some title text right at the last minute and make that title text also distort as well. And all these tools are playing back -- these are playing back off the GPU. So we're able to do this in real time, too. So last little thing I wanted to mention was the ability to -- we've talked about making things look terrible. Let's quickly make them look beautiful. So in Magic Bullet Looks, the flagship tool that Dave mentioned, that we have the ability to as -- when you said this, I wrote this down as well when you said it, Dave, everyone can be a colorist. So in this case, we've got images where we can very easily add color correction. Let's begin to manage the levels of -- here, increase the brightness, maybe make this seem as if it was like a really warm day, add some diffusion in to the scene as well, here we go, add some diffusion, really quick to be able to change those settings and to be able to diffuse the scene and make it look like it's really warm, here we are, like a summer afternoon. But the key thing is here that not only is this creative, it's also technical because we have the ability to work in HDR space. So it doesn't matter how bright we make these images. They are being communicated to the rest of the workflow through a whole series of intelligent color handling. And so you can set up advanced color workflows for -- at the highest level, you can work with this with the ACES Academy workflows for HDR images. You can work with that with Magic Bullet as well. But I did say this was last thing. But really, this is the last thing. Just we don't want to jump over that technology that Dave mentioned just a few minutes ago. This is really fun. So we've got the new technology that enables you to -- be able to -- let's see, is this the right one? Yes, here's a video recording of being able to capture something on your phone, so on your iPhone, specifically. So -- and you don't have to have a studio. This is somebody's room, very obviously. So we can just go around this basket and that we can create images, which then are turned into 3D objects. So this is the first stage. Then the second stage is to jump back over to -- here we go. And so we've got the ability to go -- connect your phone with Cinema 4D. It then imports that image, and then it also then lets you compute that image, too. So this is just really a screen recording of that connection between Moves by Maxon and Cinema 4D. And then, here it is, computing object, and then it turns into an object in the Browser. And my very last thing to do is to show you that same basket that was just being scanned, but I jump back over to Cinema. And I open that scene, here we go, so the fruit stand scene, that same exact scene. And I wanted to show you that basket as well. That's -- here we go. So let's just zoom out slightly here. So we want to just position that basket inside this scene. Let's just jump into the Asset Browser. I've got -- let's just type in basket, and here we go. Here is that exact same basket, I can use a placement tool, just to drag that into the scene here. And then what I'll do is I'll just size it up slightly. Remember placement tools let you place this anywhere. But what if we, zoom in a little bit, what if we wanted to put this up on top of one of those other boxes or over here? Here we go. And then size that up, size that down. Maybe we want it over here. Maybe we want it to just scatter a number of them around the scene. So really, that's the easy way to do it. You've scanned your image, and then you're able to just throw it into Cinema. And you're not getting in the way of the creative process. Great. So thank you for letting me go 2 minutes over. I was just trying to encapsulate all those things just into 20 minutes. It was pretty tough, but there's so many things in there.

Thank you very much, Simon. I think he's going to stop his screen here. That was a extremely fast boot camp into a number of the tools that Maxon brings with Maxon One. And that -- I think Simon showed you maybe 5 of the 148 Red Giant tools, plus maybe one feature inside of Cinema 4D. There's just so much more in our product suites, we had to give you a quick version of it. With that, I think Axel and I are more than happy to take questions. But as you can see, Maxon is a very different company than maybe other groups in Nemetschek are. So we're happy to take questions about it. And hopefully, that gave you a taste of what the Nemetschek M&E segment brings to the market.

Wonderful, Dave, and a big applause and thank you to both of you also, Simon. I think everyone could feel how passionate you are at the end of the day, and I think you could have gone on for the other 100 and X features and products. At the end of the day, Dave is right. This is different, but it's also very much the same from some other businesses under the Nemetschek umbrella. And all of you are covering Nemetschek as a group. And it's important to the investor rel team and myself to once again remind us of what is the similarity at the end of the day. And that is that all of those businesses have to create return for our shareholders. At the end of the day, it's about value creation. I know your analyst life is about financial modeling, about market size, growth rates, profitability and a lot of figures. And therefore, thank you for your patience in the last hour to bear with us for deep diving a little bit, as many of your requests were, in the last couple of years, to better understand the nature of this business and give you some hints of whom could you potentially turn to and ask when you want to understand what are the customers, what are the differentiating factors to some of the competitive products that are out there and come back to us and hopefully, more and more engage into what we would have not done so often in the past, the Media & Entertainment discussion. So the floor is yours. We can go one by one. [Operator Instructions] Dave and I, Stefie, we're at your disposal to answer a question, Simon, of course, as well. If we're not able or willing to answer the questions at this of point of time, then please allow us a follow-up or respect our nondisclosure on some of those. Again, we're starting a series of a bit more communication about a segment that we believe some of the market participants have not fully understood. But there seems to be a lot of interest.

I'm starting with Florian Treisch, and I'll hand over the mic to you, Florian.

Great. I hope you can hear me. So actually, I have some questions, if I may. So the first is more on the product itself. So you mentioned these game engine providers like Unreal, Unity Software. So for me, it's interesting to learn how you are comparing or competing against these guys. Or are you? And you mentioned the Cineware initiative. You are seeing themselves more as a partner in the context of winning a client? The second is then probably more for you, Axel, as you mentioned in the newspaper, this kind of 20% top line growth in coming years -- or years as a target. What are the biggest driver for that? And how important really is it? Is that kind of a single client win? Or is that really a well-diversified business here? The last one, it's not so big. As you mentioned, you're kind of internally using your software. Can you kind of quantify the benefits of it, i.e., what would maybe be the cost to do it externally?

Yes. So I guess I can go first on the Unity, Unreal. And from my perspective, I assume they'd probably take a similar perspective. I think they're actually fundamentally different businesses. Unity and Unreal make their money from playing back content, and they play back that content in games. They'll even play back architectural content. They'll play back AR/VR scenes. They're trying to create the metaverse you'd often hear them talk about. They're about taking 3D content and presenting it to somebody. And that somebody could be a game player who's somewhere in goggles or someone who's looking at an architectural scene in playback. And we are fundamentally not doing that. We're fundamentally creating content. And so if you were to go into Unreal and start with 0, you wouldn't get that far. They give you some amount of tools, but that's not what they try to do. They try to take content that's been created and play it back beautifully and amazingly and fast. And so we create the content with them. That's why Epic actually gave us an Epic foundation grant to create the Cineware integration. You can take those beautiful things that Simon created in Cinema 4D and bring them directly into Unreal and then play them back inside of Unreal. And you can go back into Cinema 4D to change them when you want them to behave differently. We're doing the same thing coming up with Magic Bullet. Those things that you're in Unreal, maybe you're trying to play them back to a news broadcast, and they don't look the color you want yet because Unreal doesn't have a color grading suite. You'd be able to then, inside of Unreal, apply Magic Bullet to make the color look correctly inside of Unreal. So we're very, very much partners. We focus on creation. They focus on playback. So that was the -- I guess that was the first question. I think the second one was over to you, Axel.

Yes. Thank you. And Dave, feel free to jump in. But I think the question from Florian was about this article where we would have mentioned the growth ambitions. I think I mentioned 15% to 20%, at minimum 15%, which is an overproportional growth that we want to see, and we're expecting from that division to be delivered as a contribution to the overall N Group growth. And that alone, I think, speaks for itself that where are the sources? I think that was part of the question as well. Where should this -- the growth come from? I've always realized that in my discussion with Dave and his team, there's a couple of the effects and the fruits that we can harvest now from previous activities such as smaller acquisitions, for example. Would have been taking over a dealer, for example, in a particular country. We would have acquired a small team with a particular feature on the sculpturing, for example, as Dave was mentioning earlier. We can take advantage of the subscription transition that successfully is basically going to be completed as we speak here then 3D and people in the industry talk about the potential future explosion almost of 3D being everywhere. And that -- you remember that chart with the pyramid that Dave showed to you. That is more the top part of that pyramid. So that's driving content actually more to the top. So we have a couple of sources, I would say, from gaining a critical mass to popularity, the combination, as I was speaking to end customers, which, again, would be contracting with smaller agencies or creative studios, for example, to be then using our software, they would be talking about our potential where we would have integrated what used to be Maxon and Cinema 4D, the Redshift, the Red Giant, all of those features to be found now in a bundle, if you want all of them, or in a debundled offering. And again, we're expecting after that call that at least all of you purchase a subscription. Just kidding. No, but there are several sources, Florian. And I think it's a very good question. We cannot nail it down to really just the one effect. I think it's a couple of those elements that we're currently observing, and we would project and forecast them to be also relevant going forward. And one of the last elements of your question, if I understood it correctly, was you were wondering about how important is that single customer win or that new client. I think we have a very, very broad user base. And if I'm not mistaken, opposite to construction projects, which can last 2 to 3 years, well, our software gets used, Dave would have shown me with this team, a lot of examples of end cases that were just done for, let's say, this feature, this commercial, this illustration, this Hollywood blockbuster special effect. So we're having a very balanced picture and customer base of many use cases, but they wouldn't last for several years. There is -- they might hop often on basically and acquire additional features or enrich their relationship with us, and that might tie them even more into our offering. And don't forget that Dave and the team, what we're bringing to the market almost every week, right, they -- or every month, in a frequency of new features, new capabilities, functionalities, it's much more than in the typical products that you're maybe used from Nemetschek. So there's -- it's much more dynamic. And that keeps also the customers really interested. And that's also the potential for upselling, up-pricing in a certain way as a win-win really for us and the customers.

Yes. Axel, I think the only thing I'd add is there isn't sort of any single customer that would point to that as even sort of measurable percentage-wise in our revenue. We're growing in every country in the world, basically. We're growing across all those different segments I talked to, and it's often in very, very small design shops. So it's 2, 3, 10 seats at a time. And so we're growing across the industry. We -- there is a really strong organic growth that Axel talks about, especially in this higher-end content, 2.5D, 3D. There's a very strong organic growth, but we believe we're going well beyond that. And that's leveraging the expertise of bringing multiple companies together, the expertise of bringing multiple products together, someone who would have been our giant customer is now introduced to Cinema 4D and vice versa. So we're really leveraging that growth that we brought together and the strengths of all the different people at the company. And we do believe this was -- is a very sustainable growth.

Right. Right. Super. I think there was one question for Simon. [Operator Instructions]

Do you -- can you repeat that question for me?

I think the question was...

All right. Are you okay with the answers? Or there was one particular in terms of the -- I think some of the product features.

The idea was to get a better feeling. As you said, you're using Maxon software suite in other internal products in the construction space. How much of a value add that really is and how this is really helping to offer a better product? And...

Yes. That's the -- those are the ties really. I think Dave was mentioning them in his presentation. I also tried to point them out in my intro part that it's roughly 15% today currently that we estimate the business overall size of the division is tied into the AEC. But it's an important feature. I mean, Dave was mentioning at the bottom of this one slide, you might remember, Allplan, Vector and Graphi or Archicad, so those authoring tools, the design tools. I think it's fair to say that they benefit -- they have a better possibility to really differentiate with something like, for example, the high-class, state-of-the-art, best-in-breed rendering functionality. So it is important for them, absolutely. I think that was the original strategic intent, and I would always want to keep that really in-house. Other competitors on the authoring design space and AEC might want to advise their customers to get that kind of feature from somewhere else. Here, from us, they really get it embedded as a plug-in, as an additional within the Vectorworks, within the Archicad, within the Allplan already. And I think that's a great teamwork here, where the individual brands are teaming up and working together quite well. Okay. Thank you, Florian. Then we have Sven Merkt.

So I was wondering if you could first talk a little bit about the subscription transition. It's obviously a big topic for the overall software industry but also for Nemetschek at the moment. And so I'm particularly interested of what were the main learnings that you had during your transition? And I'm very particularly interested how many customers now after the transition are still on maintenance. And kind of what your plans are to transition them also to a subscription model? What kind of incentives you really could give them? And then just a second question maybe. You now have done obviously a number of acquisitions. Would you say you have now pretty much a full portfolio of all the capabilities that you need? Or is there still anything outstanding?

Well, Dave can walk you through the details and the good, bad and uglies about how he transferred the business from perpetual to a subscription. I can just say, allow me, Dave, to just mention 2 or 3 things that are maybe relevant also for the N Group, which is, I have learned, and please take that also, not for granted, subscription does not equal subscription. And transition from perpetual to subscription does not equal transition from perpetual to subscription. None of those transitions that I have seen -- that we have seen at Nemetschek is a lie. It's got to be exactly the same, following the same pattern, the same logic, the same success. There's fundamentals that we have learned, which is one strength that is the learning that we can do that with the right preparation. But there's a learning that also we should not -- and Enrique Glas, our Maxon CFO, is also here on the call. He can confirm that let's not underestimate the back-end processes, how ready the organization must be. It's not just launching the web store and announcing here a subscription. You need to be smart about how to price and place and position the product out there, how to bundle or debundle and be prepared with the back-end processes and explain the value. But the bottom line is we can do that. And I think it's fair to say that more than 2/3 of your business, Dave, in the meantime, have transferred already and gone through that transition. But you can -- again, you can describe that much better. For Nemetschek, it is an important theme. And I think one of the last proof points that we really want to go in that direction, that we feel the strategy is the right one, was the success of Maxon in the last 18 months. Again, the duration of such a transition might vary. The success in terms of the magnitude, the accounting might vary. That's also important. Your Ts and Cs that you've been dealing with in terms of the perpetual license business originally might differ from one perpetual license business to another. So the IFRS accounting that would apply is somehow different. So there could be a smoother or a larger dip. So be careful that when people talk to you and say subscription and transition, check mark, it's all going to be the same, it's not. Last word from my side is that subscription does not equal cloud services and SaaS. That also is a confusion. We've been speaking with many of you many times about this, but there are still questions sometimes that we're getting that -- now that this is all SaaS and cloud. It's not. For us, there is a difference, and there's also a different value proposition. This is what Dave was talking about is subscription but still on-prem, and it's going to be a huge success. And it's going to develop further, right? Dave, anything in particular you think as a lesson learned, you draw as a conclusion?

Yes. I mean, coming from our perspective, one, there is -- a nice thing is that our industry is prepared for a subscription. It's not -- we didn't have to start from 0. All of our competitors offer subscriptions to some amount. So a lot of the conflict that you maybe had with the industry when you're a first mover, we were able to avoid that to some extent. But what we really looked at is 2 factors when we wanted to lay on our subscription plan. And that is, what is the benefit to the customer? And two, why would we do this? And one of the biggest reasons to do this was remove the barrier to entry. If you looked at doing video editing, when I started 25 years ago, which was a little bit scary, the software at the time would have all cost $3,000, $4,000, $5,000, $20,000, depending on which software you use. But as that became mainstream and more and more people did it, price came down. So when I got to Maxon, the price to get started with Cinema 4D and a service agreement was over EUR 4,000 just to get started. And so you had to convince yourself, I'm going to get into 3D. I'm going to make this massive investment, and I don't get to really try it now. And so what we said is, we're going to lower that barrier to entry. We're going to go into the competitive space. We're going to say, everybody should do 3D, so we should price it correctly. And so we brought that barrier of entry down to EUR 60 a month or EUR 650 a year if you want a subscription, somewhere around them, I'm estimating a little bit. But we've said we're not going to make it EUR 4,000 to get started. We're going to make it EUR 650 to get started. That was the first thing. So that gives you a bigger market to talk to, someone who's more willing to invest that money to get started. The second thing is, and this is what I love, I historically come from an engineering background, when you're dealing with the deferred revenue model, an IFRS, you're allowed to develop your products differently. It's a very nice experience. You can bring out features whenever you want. You can add value to your customers whenever you want because you've already dealt with the accounting principles that allow you to do that. And so we're allowed to go from maybe having once a year release if you're a Cinema 4D or every 3 years if you're a Trapcode or every 19 months or something if you're a Trapcode. To constantly bringing out new stuff every month, keeping your customers engaged, adding services like training or content that we're delivering every month, adding features when you want, integrating things when you want, we can become flexible as a company, which allows us to move faster in the industry and actually change the way we're doing things based on what the market is telling us to do, instead of waiting on an 18-month perpetual rollout. And so we were able to show the customer that value. And you asked about how many people are left in service agreements. Outside of Redshift, which we just brought to subscriptions a month ago, there are no service agreements left. That's done. Axel gave you a number. I won't say anything other than what he said. He said 2/3. That's fine with me. We don't go into that level of detail at this point. But I can tell you, we're basically there with our subscription transition. It's been extraordinarily successful. Our customers appreciate it. In the first year of Cinema 4D, we had more subscribers than we ever had than service.

Thank you, very insightful. Looking at the time, maybe I go again from left to right on my screen, at least. Knut Woller should be there, from Baader, with a question.

Yes. Axel, sorry, I'm just getting the camera on that you can see me. I have 2 questions actually. The first one, looking at the growth rates that you communicated for Maxon, that's quite clear. How should we think about margins? That would be the first one. And then the second one to Dave and Simon, you mentioned Capsules as one of the areas of growth. How should we think about the monetization of Capsules? Will you just try to drive the adoption and, hence, grow the user base? Or is it also something where you believe that can be monetized individually? And to which extent can you leverage here also the assets from other brands? For example, I remember you had Objects for example. And it looked a bit like what Simon showcased that you used some elements like chairs, tables. So to which extent can you leverage that?

Thank you very much. That's a good proof point that some people follow us for quite a while and remember things very well. Thank you very much for the excellent questions. So on margins, let me say upfront that we're committed to invest and to support Dave and his team in any going-forward business opportunity that we would see there. That could be organic. That could be R&D. That could be geographical. But again, when we talk about that over average group -- over group average, yes, growth pace, and mentioning the 15% at minimum, then we're also probably looking at a minimum of 30% as a roundabout margin without going into one particular year, without going into one particular detail there. But that's the expectation. The business has the power to deliver overproportional growth and over group average potential margin. But again, the commitment from our side is that whenever we see opportunities to grab market share, customers, geographics, organic, inorganic features, we're very committed to do so, as we have done in the last couple of years. When the business really got more is -- I think you can all feel it in the focus also from us on the exec team and the management team.

Yes. Then from the Capsules side, it's just a new strategy we've been rolling out quite a bit. We've had asset for a while. But the capsules, we've specifically been rolling out for a while. Most people in the industry who sort of go into these areas actually try to resell other people's content, and it's a very difficult business to get into. They decide to -- they have to put in management of how to look at the assets. Are they quality assets? Are they appropriate assets? They have to deal with all that, and it becomes a low-margin business. And you have to set up a shop. That's just not how we're looking at it. We're looking at it as basically saying, are you a subscriber to Maxon One? If you are, we want to offer you the highest quality content that we're creating, that we're bringing into the group that we think is useful for the workflows you're working on. And we want to be able to then bring those assets or those capsules to any of our customers, whether they're using Cinema 4D or using one of the products that integrates with Cineware. So if we have these great amazing content like trees and chairs and desks, when you use Cineware inside of Vectorworks and Graphisoft, we want to make it available, that they can browse those same content of assets if they're a Maxon One subscriber. Now we haven't gotten there yet, but this is something we do already in After Effects. You could have saw it, where Simon looked for a 3D object inside of After Effects and was able to find one from the Asset Browser and Cinema 4D. So this is something we're rolling out. It's something that we're building right now. We're actually building a team to bring the highest quality content out. But this is something we truly believe that Maxon One is the place you should go for all of these, whether they're materials, presets, smart objects, normal objects, HDRRs that -- HDRIs that Simon showed. They should be something that you should get. And we're delivering them on a monthly basis now for the last 6 to 7 months. Every month, you get a new package of these. So maybe it's -- maybe in December, it's going to be a holiday pack. Or in Halloween, you're going to get pumpkins. We don't know yet, but we're going to keep it fun. And we're going to keep bringing stuff that our customers want. And we believe it's part of the subscription.

Excellent. Thank you. So George would be next.

I just wanted to take a step back and really get into, I think, a point you finished on there, which is -- and tell me if I'm wrong because I'm not at all kind of in tune with this industry. But it feels to me like if you're a design artist or a graphics designer, there's a whole variety of different products you would use depending on your particular assignment, even from different vendors. And clearly, you've done some M&A in recent years to bring some of those pieces together. Thinking about a much kind of longer-term outlook, is there a big story that's going to happen in this industry where you're going to have simplification of the amount of products that people need to use to get things done? Is it very fragmented today and will that change?

From our perspective, no, I don't necessarily think so. In fairness, you're almost seeing it go a little bit the other way at times. There are these kitchen-sink tech applications, and I mean that in a positive way. So if you're going to do anything with a photo, you're going to use Photoshop most likely. If you're going to do anything illustration, you're going to use Illustrator. They do really amazing things. I don't think you're going to see companies succeed if they try to put 3D inside of Microsoft Paint. Like it's -- they're just different tool sets. So you want to keep the tool designed for what you're trying to do. And especially when you bring out iPads and phones where you're doing various pieces of the workflow, whether it's capturing a facial animation like you can do with Maxon Moves or capturing an object that we showed, you're going to be using more specific tools for parts of your workflow. And therefore, it's much more important that they learn to work together. You're not going to lose those Cinemas 4Ds and Photoshops and Illustrator. They're always going to be there, but you're going to find places where you're going to need actually more interesting tools. And I think that makes it interesting in the acquisition space is that there are people springing up who are just doing machine learning for color grading, or they're just doing keying on cloud computing. There's going to be more and more opportunities because there's so much to accomplish in this space.

That's helpful. Maybe I just wanted to add on to, I guess, then thinking about that landscape and just thinking about what you've said around kind of customer loyalty. It sounds like very, very sticky software that people probably don't want to shift between different vendors to use at different points of time. Is that -- I guess that would have been borne out what you saw during the subscription shift. Is that correct?

We're absolutely seeing really sticky customers. We're really happy with our retention. We have very loyal customers. We've known them for years. We get to hang out with them when we're allowed to go to trade shows. Hopefully, that gets back to normal. But we have very sticky customers. It is something that people invest their career in. And if you -- as a financial analyst, if you had to change the tools that you use every single day when you go to work to something else, whatever that something is and something else is, you probably would be grumpy for a while. It's no different than in our space. If you're going to be a creative every single day, you're going to learn how our tools work and you're going to feel comfortable in them. And it's our job with subscription to convince them every day that it's amazing because they could leave us immediately, and that's value for them in subscription. And so we'd love to make our products more amazing every single day so that they want to open it up and have fun with it.

Thank you very much. With a few minutes left, we have David and Uwe are left, whoever wants to go first.

I'll go first then. Just 2 questions on my side. Can you give us any idea of -- an idea of how many customers are using multiple Maxon products now? And if cross-selling has been working as expected between Maxon -- the historical Maxon, Redshift and now Red Giant? And the second question is on M&A. What kind of assets are you looking at now? Are you looking more into the 3D DCC space or more going down the chain toward compositing or editing?

Yes. So for the first question -- I just blanked. The first one was, sorry, number of customers. We don't give out our number of customers. We just try to avoid that. It never seems to go well in the industry when people talk about actual customers. But what I will tell you is in the last year, Maxon One, which is our combined subscription, has outgrown all of our other subscriptions massively. It's been a massive success. And in that, we're seeing that so many of our customers are using multiple products. Redshift, when we brought it out with Cinema 4D, the bundle was unbelievably successful. Our customers definitely see the value in using multiple products. That's been proven out this last year. It's definitely one of the key drivers for our growth is they're not bringing in just one product, they're bringing in Maxon One or they're bringing in 2 products. So we don't talk about the actual numbers, but we're definitely seeing the value of the company...

More and more, yes.

As far as where we're looking at acquisitions, it's definitely a combination. It's not -- we're not saying we won't really want to go and look at this thing. We're saying what technology is out there and what people are working with that technology. So we want to find companies that fit. You can just go on and buy a bunch of companies and hope they fit together, and they're very different types of technology companies and trying to just maximize the growth. And that's not what we're doing. We're looking for specific companies that have that sort of intent where they've created the company with the artists, with the original people, where they would fit into our company, where they would be -- the culture of our companies would combine well. And then it could be small, and it could be large. So Bang was an example of something that we brought in. That was a very small acquisition. It was a fun product that we knew about in the market. It fit directly into the way we think about the world, and the person who did it fit directly into Maxon. It was a great fit. So we brought them in. So we're not actually saying we're going to go target this thing. We're looking for companies and technologies and products, big and small, that expand what we offer with Maxon One but also fits culturally inside of Maxon because we're doing it as a single company.

And I think it's fair to say that the directional tendency is to really -- whatever we would find there as a complementary would be integrated. So we're not considering anything organic as kind of a subpart of the organization or of the business or the offering, right? That is also different. So Uwe, last not least, the mic is yours.

Yes. Just one last question really. And it's really meant less nasty than it may sound like at first sight. But given the lots of M&A that you did as a segment, what does your internal R&D really do these days? And how happy are you with the R&D efficiency overall?

And so I think that is utterly sort of separated, and I think that's the pleasure of it. We didn't acquire R&D into Cinema 4D. We didn't acquire R&D into Redshift. We acquired products that complement each other, and the R&D going on each of those products continued at full speed. Cinema 4D, as -- just as an easy example, was the first product in the entirety of the industry to land on Apple's new computers with the Apple silicon. We were there on day 1, and we were there with Metal and on the shows with Apple. And Redshift was their Metal. And those are massive engineering efforts. Our R&D teams are the best in the world, and they're working on the technology stack that they've been brought in to work on. But we're bringing in parallel technology tracks and then asking them to work together. So it's not that Cinema 4D stopped 3 years ago, and we just brought in Red Giant and Redshift. Cinema 4D has had hundreds and hundreds and hundreds of features in the last 3 years. Red Giant came in and worked on Red Giant products. Redshift came in and worked on Redshift products. And so we have these multiple parallel streams of R&D going forward. So we haven't bought to fix problems. We bought because the company is fit and the vision fit.

Don't worry, Uwe. There's no nasty questions. So with this one, again, a big thank you to all of you who took the time, those ones that prepared, those ones that presented, Simon and Dave, in particular. And the offer that once you would walk away from this call, hopefully, being able to -- having learned a little bit more about the insights really about the nature, the ecosystem, the dynamics, the fantasy, the passion that we all share when looking at this business, when running this business. And please turn to Stefie and the investor rel team to follow up on any potential questions. We're at your disposal. It is my -- it is our philosophy to open up a little bit more because we have built a basis which -- this was the Phase 1 and Phase 2 maybe to now be able to be a relevant player in a market that is somewhat becoming more and more different from the core business of what Nemetschek stands for. And therefore, we feel the need, we feel the interest, and we want to thank all of the inquirers to be given the chance here to present because that shows the appreciation for the business, for our work, for the team. Dave can also take that back. I think that's the credit that everyone deserves. So we're passionate, we're optimistic. Thank you very much.