Nilfisk Holding A/S (NF1.F) Earnings Call Transcript & Summary

Welcome, and good morning. Welcome to our 2022 Capital Markets Day here at Nilfisk's headquarters in Brondby. My name is Elisabeth Klintholm, I am Head of Investor Relations and Group Communication here at Nilfisk. We are very happy to today be able to welcome you physically here to our premises. As we all know, that has been a while since we've been able to do that regularly. But we are also very happy to be able to welcome you, watching from online, as this is a hybrid event today. Today's program will run until about a quarter to 1, and we have 3 sections prepared for you that I will come back to in a moment. But before, I will just start with running through a few practicalities. After each of the 3 sections, we'll have a Q&A session, where you'll be able to ask questions. As this is a hybrid event, I will ask all of you to use our question module when you ask questions so that everyone can both hear the questions and obviously the answers. This will enable me, if you use the module, to direct the questions to the speakers, and everyone participating will be able to hear the question. This means that if you are present in the room, there will be a QR code that you scan and then you enter your question there. If you submit your questions during the presentation, you're welcome to do that. You can also do it when we go into the Q&A. [Operator Instructions] Around 11:30, we'll take a 15-minute coffee break, and then we will serve lunch. Once we are done, about a quarter to 1 when the program is complete. And then moving into the agenda. We have, as I said before, 3 main topics on the agenda for today. Our business plan 2026, growth platforms for long-term sustainable value creation and the third section is leading with sustainability and service. We have CEO, Torsten Turling, starting today's program off by setting the scene and presenting our strategic direction, the fundamentals for our choices for the business plan '26; then CFO, Reinhard Mayer, he will follow up with our financial targets towards '26, as well as the section on how we are building our execution engine; Head of HR, Jacob Blom will round off the first topic by providing insights into how we are working with building a culture that ensures a successful strategy execution, which is something that we will talk a lot about today. After these introductory presentations, we'll have a Q&A. And then we move into the second session going into business. We will have Head of Sales, Steen Lindbo, to take us through how we intend to leverage our strong platform in Europe; then our Head of U.S. Sales, Jamie O'Neill is going to join us online from the U.S. to elaborate on our ambition to expand on our U.S. position; Head of Specialty Business and Corporate Affairs, Hans Flemming Jensen, will detail how we intend to unleash our IVS, Industrial Vacuum Solutions growth potential; and finally, we have Head of Operations, Soren Pap-Tolstrup, to take us through our plans to enhance supply chain robustness to ensure our profitable growth journey. After this session, we'll have another Q&A. And then in the third part, it's called leading with sustainability and service. First, we'll have Head of Marketing, Camilla Ramby, to present our ambitious sustainability targets and the ambitions we have for this; Head of R&D, Pierre Mikaelsson, will talk about our ambitions on leading the industry with sustainable products; And finally, CEO, Torsten Turling, will come back to unfold the growth perspectives of how we will develop service as a business. And with this, Torsten, I will hand over to you. The scene is yours.

Thank you very much, Elisabeth. Good morning to all of you. My name is Torsten Turling, I'm Nilfisk's CEO. It's a great pleasure having you with us this morning. It's not normal times. It's not normal times for you, not for us. So even more, thank you for being with us either physically in the room or online. I joined the company in June last year. I choose to join Nilfisk because I saw a lot of potential. And I saw the unique opportunity to build a global market leader. So Nilfisk was founded by inventor and entrepreneur, P. A. Fisker in 1906. 115 years later, in 2021, the company realized sales of EUR 990 million sales. As part of our business plan that we're going to elaborate today on, we target sales in 2026, when the company will turn 120 years, of EUR 1.2 billion to EUR 1.3 billion. We'll elaborate more about how to achieve that target, and I'm proud to lead this precious Danish heritage company into the next chapter of its future. A few key data about our business and our markets. Nilfisk is a truly global company. Of course, the majority of our revenue, 61% is our home market in Europe. For long, however, since very early of its history, Nilfisk also developed a strong presence in the U.S. market. The Americas region last year represented 30% of our sales. And this is complemented by our business in the APAC region, representing 9% of our sales. Interesting to point out is that the single largest country by far is the U.S. business that we have, last year, representing 25% of our sales after a very strong growth in the year. We operate in professional cleaning equipment. We believe that it's a very attractive market to be in. From our total sales, EUR 995 million, 91% is in the professional space. 9% is in the consumer space where we have a strong brand, mainly Nordic countries, but also in countries like Germany or the U.K. But our key focus, obviously, is the professional business. The professional business has an interesting size. It's large enough to be meaningful, but it's also small enough of a company of our size to be a global leader in this industry. It's a EUR 7.5 billion industry. And interestingly, this industry is mainly weighted towards the developed markets. So the U.S., the Americas region is 40% of the total part of the business; Europe, 39%; and 21% is Asia. So an industry that is weighted towards the developed markets. And why is this? This industry is a growth market, and it's primarily driven by growth in the developed countries. So in our research, we came to a clear formula, a clear strong correlation between the salary level in the country and the proportion of gross domestic product, so defining the size of the market. So in other words, the higher the salary level the more in the country, the market is large for professional cleaning equipment, which is pretty obvious because with rising salary levels, you replace or complement manual cleaning by machine-assisted cleaning. So that's above all true for the developed countries where salary levels are high and continues to rise and will be true in the very long term also for the countries in the emerging market. But you see a market like China or even more a country like India are very early in this phase of development. So that's why we focus first on the developing countries where the markets are developing and growing the fastest right now. This is a growth industry. We project growth for the next 5 years around 3% per annum which is taking this industry from EUR 7.5 billion to EUR 8.7 billion. So there's another EUR 1.2 billion of revenue of market potential coming available in the next couple of years. This is a fundamental growth industry. This is further substantiated by more recent drivers. In the aftermath of the pandemic, the importance of clean hygiene, safety has further increased. This will also more and more be reflected by regulatory measures. Then labor shortage has also increased further. This will also further substantiate the fundamental market growth. Digital transformation is helping our customers to drive for further productivity solutions that are needed in the light of the rising labor cost and labor shortage. So also this will further upgrade the market demand. And last but not least, sustainability requirements will also require our products to remain state of the art to comply to those requirements. This is an industry quite unusual where the premium products that comply to the highest standards of requirements represent a large proportion of the market, 45%, right? And then the middle market and the entry level of the market, they have also their proportion. But the premium segment, where we have our strongest position is a big chunk of this professional market. That's why we think it's an attractive, long-term growing market and a good market to be in. In this market, there are a large variety of application segments. Some of those segments are more attractive than others, are growing even faster than the average. So we put out -- we call out 4 particular market segments that we see of particular interest and attractive for us to focus on. So the contract cleaner market is one is the largest single application in the entire professional cleaning market, representing 29% of the entire market. We are well placed and we think it's a very good growth potential for us in the future. The market of logistics and warehousing all around the world is booming and requires cleaning equipment, so we are well placed also to benefit from the growth of that market. Health and education is a key market where there's a lot of investment going on around the world to upgrade with cleaning equipment to preserve health and safety living environment. And then finally, retail is a sector that is attractive and one of our focus areas of application. Then we are uniquely present. It's not only a combination of 3 important categories in the space of professional cleaning. It's also playing together a comprehensive solution that no one else in this industry globally can offer like this. Our floor care products for industrial and commercial applications representing 34% of our sales. Vacuum cleaners from household to industrial vacuum solutions to the most sophisticated applications, we cover the entire bandwidth, high pressure washers as well from household to the most intense professional application, all packaged together with an aftermarket service value proposition to our customers. This breadth of offer is pretty unique in the industry of professional cleaning equipment. So after this introduction and a bit coloring out the market, let us talk about our business plan and the way forward. Nilfisk has demonstrated in the year '22 a remarkable recovery. Sales growth of almost 21% to EUR 995 million and an EBITDA margin which marks the highest point since the IPO. Even those numbers are strong, we have to acknowledge that the prior years the company fell short of its own target setting. So we fell short of our ambitions in the years before, and now we are on the path to recover from that. But when we, in the second half of '21, took a deep dive in our strategy review, of course, we faced the question, what went wrong? Why we did not execute as we had intended to execute? So those learnings made it directly in our business plan, and I think we have identified a clear path for the future to deliver on our promise. As part of this strategic review, we have identified underrepresented growth opportunities. We have also assessed either past initiatives or potential future initiatives when it comes to the value creation potential. And we were able to do this based on a very comprehensive fact base that we have developed over the months. With that transparency, about financial implications and requirements to successfully execute, we have formulated a business plan 2026. We believe that business plan is ambitious, yes, but achievable with robust targets, a clear implementation plan and clarity on resources that are necessary to make the plan happen. Based on that plan, we are confident we can reach our sales guidance of EUR 1.2 billion to EUR 1.3 billion by 2026, and our EBITDA margin ambition of higher than 16% by 2026. So let me talk about the elements of business plan 2026. And we start with the value proposition. Any growth ambition needs to be customer focused. Otherwise, it's an illusion to expect growth. Customers operate our equipment over years in a professional setting. Providing life cycle services is the ultimate form of customer focus. That's the first pillar of our value proposition. The second pillar of our value proposition, building on our technological strength is to create meaningful customer-focused innovation. And finally, for our customers, they take more and more higher sustainability commitments for us to support and enable our customers to comply to their commitments. This is the third key pillar of our value proposition. Along those 3 elements of value proposition. Our ambition is to become the recognized leader in the professional cleaning equipment industry. So after that fundament of value proposition, clearly what we want to stand for towards our customers in the market, the next element is what are the key business levers to drive value creation? So we differentiate between optimization opportunities and strategic priorities. In total, a package of 5 clearly defined selected elements. The optimization opportunities are areas where we're already strong, but we have identified significant improvement potential. The robustness of our supply chain is key, supporting our growth journey and standing the test also of more troubled times. An area where we significantly invest in and we have room to optimize. Then our strong position in Europe, our leadership position. Even there, the largest part of our business, we have identified significant opportunities to further optimize. Those are the 2 optimization opportunities. Then we talk about strategic priorities. Strategic priorities are the ones where we want to provide a step change compared to our current situation. They're not just optimization opportunities. There are significant step changes compared to the current situation. We're going to explore this in the presentations today. We see huge value creation potential by developing service as a business rather than a reactive repair activity. We see massive value creation potential by growing in the large-scale U.S. market. So we're going to explore how we do this and why this is valuable. And then finally, we want to lead with sustainable products. We believe that's hugely value creating for us as a company, for our customers and for society. So those are the 5 key levers that mark the business fundament of our business plan. Of course, any business plan that aims to grow needs to cater for investments. Those are enablers in the growth. So we have 3 key areas for our investments to facilitate the long-term growth journey: Enhance the supply robustness, so we invest into increasing our capacity to cater for the growth; then we lead with sustainable products, so we invest in innovation and product upgrades; and then digital enablement, so we invest into strengthening the backbone of our systems and our digital applications. Those are the key areas that are reserved in our business plan '26 for substantiating our growth. Finally, it comes to execution. And we talked about execution for shortcomings in the past. So we spend a lot of time thinking about what can secure successful execution in the future. And here, we clearly need to say that people make all the difference. They are key to successful execution. So we thought about what needs to change in the sense of ways of working to make sure our people are in the best place to execute on our common strategy. So we're going to talk about 3 elements in ways of working which will, over time, develop a powerful execution engine. Reinhard later on in his presentation will talk about the so-called Nilfisk operating system. That's a set of methodology that is very well proven in many other companies that have demonstrated whether clear methodology that can enable and track successful synergy deployment and execution. We talk about this. We'll adopt that proven methodology that Reinhard, myself, many others have experienced elsewhere and has shown to be very, very impactful. Second, digital enablement. That allows us to have the right information, business-critical information available at our fingertips, have deep rich analysis to take the right decision while we're executing along the way. And then finally, the empowerment of the people, that's fundamentally important if you want people to drive frontline execution. So let me explore a bit further on this topic of empowerment of the people. We have set out clear strategic priorities. And it's obvious you need to anchor those in the executive leadership organization to secure implementation. That requires some adjustments of our current organizational setting. We talk about developing service as a business. In consequence of this strategic priority, we have created a new position of Executive Vice President for the Global Service business. So that's a new colleague that will join us in a few weeks, an external appointment that we're going to announce today. Then we need to be more holistic in our decision-making, in our responsibility. So we create more autonomy, more end-to-end responsibility in our regional business. We want to grow in the U.S. market, large-scale growth opportunities. So we give more authority into this region. So we set the operational organization on a regional basis to better align with the market requirements. This gives more end-to-end responsibility and decision-making power at the front line of our business. And then finally, to step up our product management function, to live up to our ambition to lead with sustainable products, we enhanced the product management function and give the product management function overall responsibility for the success of the category. Then we talk about the attractiveness and growth opportunity of our specialty business. That Specialty business has different success factors. We need to manage this end-to-end across all functions. Hans Flemming will talk about the IVS examples where this has clearly demonstrated the value of running such business in the business unit setting. This is what we have started to introduce. The companies hold together as one by a strong shared purpose, strong shared values, collaboration and a set of processes that are shared across the organization. The second element of this empowered people is the culture that is required for people to thrive. And we have said 3 elements that mark that culture, and we believe will be fundamental to secure the long-term sustainable growth journey that we have embarked on. One is the growth mindset that we want our people to adopt more and more. It's a fundamental belief that capabilities can grow over time, that we can learn from mistakes and set back and get better every step on the way. The next thing is collaboration. We need to link and merge the efforts across all functional areas into a common effort that will make us stronger over time. And this is a long-term journey, sustainability going consistently in a clearly defined direction. Cater for purpose, diversity and inclusion will make sure we create value along the way long term. Those are the key elements of our future. This marks business plan '26, a value proposition, 5 business leaders and clearly identified ways of working. So how is this different, you will wonder. Now you follow -- most of you, you followed the company for quite some time. So how is business plan different from what was called so far Nilfisk Next? Just give me -- let me give you a few simple but I guess, straightforward examples. Nilfisk Next targeted multiple directions: growth, simplification, digitalization, leadership. Simplification probably was key in the last couple of years. Business Plan '26 focuses on growth, profitable long-term growth. That's a clear focus, nothing else. This will allow us to build scalable growth platforms, no distraction. The next key thing of Nilfisk Next was focused on autonomous cleaning machines towards intelligent cleaning. That worked to some degree. We have developed the technology, a high-tech solution, but for a high-end market and for that works perfectly. But Business Plan '26 caters for a better service for everyone, for the entire market, all our customers. And autonomous is part of a solution portfolio but it's not the only thing. And finally, we are coming from a global functional organization where we run strategic initiatives as projects and we're moving to a clear leadership organization where we put authority to the front line where the strategic priorities are anchored in the line organization, where the line owns the initiative, not a project, the line organization. And therewith, you have all people mobilized in the execution. This is a massive difference when it comes to the approach of execution. And this is the team that finally owns it. Myself, my colleague Reinhard and all my colleagues in the NLT that will speak to you today. We have developed this plan together. We own it. And we're going to deliver it. And we are proud to share it today with you. And with this introduction, thank you very much for your attention. And I'll pass it on to my colleague, Reinhard Mayer.

Thank you, Torsten, and also a very warm welcome from my side. My name is Reinhard Mayer, I'm the CFO of Nilfisk. In the next 30 minutes, I'm going to show you the outlines of our Business Plan 2026 and our ways of working to bring us there. However, before we do that, we take a short recap of our financial performance in 2026. That is the foundation on which our financial targets towards 2026 stand on. 2021 was a record setting year. Sales in Q4 landed stronger than expected, with organic growth of 16.7% in the quarter. This allowed to conclude the full year ahead of our November guidance, with a very strong organic growth of 20.7%. With this performance, Nilfisk clearly demonstrated a remarkable recovery in 2021. We achieved increased order intake across all regions and product segments, leading to revenue close to EUR 995 million. With the organic growth of 20.7% for '21, we were outpacing growth in the general cleaning equipment market. Actually represents as well a market share gain. Most significantly, our Americas region contributed with organic growth of 23.8%. With revenue of EUR 995 million, we also surpassed 2019 pre-COVID levels. When it comes to EBITDA, we had guided in November towards an EBITDA margin range of 14% to 15%. We landed exactly in the middle of that range and achieved 14.5%, with an EBITDA before special items resulting in EUR 144.3 million. This represents a growth of 43.6% from 2020, but also a significant increase from previous year. It is the best EBITDA result since the listing of the company in 2017. In our view, this performance builds a strong financial foundation for future growth. Jumping to our business plan targets 2026. Overall, our ambition is for '26 long-term revenue growth. Our 2026 target is to reach a level between EUR 1.2 billion and EUR 1.3 billion. Acquisitions may become relevant medium term, but they are not included in these targets. We have a clear perspective that the planned growth is profitable. And hence, we target an EBITDA margin before special items of above 16% in 2026. We will back our ambitions for growth and sustainability with investments into overhead and CapEx. This means we expect CapEx to be in the range of 3% to 4% of sales towards 2026. Finally, we have a clear aspiration to make Nilfisk an investment-grade company. And subsequently, we target our gearing to arrive in the range of 1.5% to 2% on our journey towards 2026. How will we achieve this? During our strategic review, we identified different dynamics in our business segments, and we have grouped them new. We distinguished 4 business units: Professional Clinic, which includes private label business; service-as-a-business; our Specialty business that represents our IVS and food business; and the Consumer business. These businesses will have full P&L responsibility and will be reported as business segments going forward. The professional business will contribute between EUR 100 million to EUR 140 million of growth in the next 5 years, mainly driven by sustainable floor care product. The service-as-a-business is targeting to deliver growth of EUR 80 million to EUR 120 million and expected to grow with the strongest momentum amongst those 4 business segments. With the Specialty business, we target to grow between EUR 20 million and EUR 30 million, which is also above average growth of the company. In the consumer business, we foresee a modest growth of EUR 5 million to EUR 15 million, which is clearly below average growth of the company. With this business focus, we have a clear growth platform, a clear P&L responsibility. And with rigorous execution, we will generate solid revenue growth in the next 5 years. When looking at revenue by geography, we see our large-scale markets driving the growth. Europe as our largest region will deliver EUR 100 million to EUR 150 million of the targeted growth, which represents a CAGR of 3.3% to 5%. The Americas region is expected to deliver EUR 85 million to EUR 125 million, which will be a CAGR in the range of 5.6% to 8.2%. The region APAC, Middle East Africa will also deliver its share of growth ranging between EUR 20 million to EUR 30 million, and that is a CAGR of 4.5% to 6.8%. So overall, our growth for the next 5 years comes with a CAGR between 3.8% and 5.5%. Our business plan leads to an EBITDA target, which is above 16% by the end of '26. The clear driver of this margin expansion is our gross profit margin. How do we achieve that, although there are currently clear headwinds from global supply chain constraints? First of all, we recognize and acknowledge these headwinds and adjust our mitigating actions fast and with rigor as displayed in 2021. Secondly, we have identified during our strategic review 4 strong levers for margin expansion. Product mix and volume growth in the professional cleaning business, this will deliver between 0.3% and 0.5% of margin increase. Second, service-as-a-business will provide a strong lift of 0.7% to 0.9% in the margin. Our commercial actions through pricing excellence and channel optimization will support the margin uplift with a range of 0.7% to 0.9%. Global operations is going to contribute strongly with 0.8% to 1% margin expansion with clear improvement through cost savings in material and scale effect from volume growth. Our overhead to sales ratio is expected to be flattish to the 2021 level when coming towards end of the planning period. In our Business Plan '26, we have also assumed going forward, a normalization of the inflation, which we see today. We invest to improve. In the Business Plan '26, we have backed our initiatives with identified investments which will drive sustainable growth. This will lead to a CapEx level ranging between 3% and 4% of sales over the course of the next 5 years with a stronger investment phase in the beginning of the period and then tapering off to a 3% level at the end of the planning period. The main drivers of CapEx are investments into innovations, manufacturing and operations and digitization and processes. You will hear more from my NLT colleagues thereafter. We are also going to invest into overhead to enable growth initiatives to deliver on their commitments. As per Business Plan '26, the areas of investments are: service-as-a-business; sales and commercial excellence, including pricing excellence; R&D and product offering; IT and data management; and our specialty business. We foresee that our underlying overhead cost structure will benefit from the economies of scale. But the structural investments into the aforementioned areas will most likely provide us a modest growth of overhead cost in the beginning of our business plan period and will then level off towards current levels by the end of the planning period. Now to the cash flow. In 2021, we have generated free cash flow of EUR 58.5 million. The cash flow going forward will clearly benefit from profitable growth, which we are targeting. Following Business Plan '26, actions will provide us a clear uplift of free cash flow. First of all, increased EBITDA through volume growth and revenue expansion. Secondly, EBITDA margin expansion from current level of 14.5% to above 16% by end of the planning period and improved financing costs going forward. On the other side, we will see headwinds for free cash flow. Well, first, by the actual increase of our paid tax through improved profit levels. Although I must say we will expect a modest reduction of our corporate tax going forward. The investments for CapEx expansion will also take a certain share of the cash flow. And finally, we expect our net working capital to consume some of the cash flow predominantly driven by our business expansion, but also by some structural needs within our service as a business. Because there, spare parts and pack availability is key to success. To sum up the financial section. With a strong business performance, and the planned increase of free cash flow, we target a gearing to land in the range of 1.5 to 2 and have a clear ambition to position Nilfisk as an investment-grade company. Our capital allocation policy stipulates that a company will distribute around 1/3 of adjusted pretax profits, and we have sustainably landed within that range. That's our ambition. Now moving forward, 2 ways of working. As Torsten mentioned in his presentation, we identified a number of shortcomings in the strategic review. Therefore, we have established the Nilfisk operating system, in short NOS, as the way of working to improve. NOS will help us to realize our growth and profitability ambitions for the next 5 years. With NOS, we are rebalancing our organization to focus on execution agility. All key initiatives are clearly anchored in the line organization and necessary resources, as I mentioned before, will be put behind them. NOS also provides a governance structure to follow up on the underlying drivers of these initiatives. The Nilfisk Operating System consists of 4 structural elements. First, the strategy deployment into growth and optimization opportunities with defined targets to improve. Second, the element on how we manage these projects and the resources. And then the last 2 elements are really focusing around providing structures, tools and data points to manage these business improvements and also our daily business to arrive at our annual operating targets. The inner core of NOS though is based around 3 building blocks: culture, tools and impact. And I'm going to explain them shortly in the next slides. The essence of the building block culture can be summarized in 1 short sentence, getting better every day. Continuous improvement is 1 of 2 pillars and starts with acknowledging gaps promptly when they arise. Work with Kaizen methodologies and mentalities to improve all our business processes and do this every day. The 80/20 mindset is the other pillar and will provide us focus on the most important levers out of our Business Plan 2026. The second building block is centered around applying proven problem-solving tools such as RCCM or also known as root cause counter measurement methodology. What is [ intent ]? Well, first of all, fast understanding of the deviation is the first element. Proper analysis of the underlying root cause was a clear fact and database is key to put the right actions and plans in place and follow up on them in a plan to check act approach. With this initiative, we are bringing the company into a resilient and learning organization. Finally, the building block impact is really centered around decision-making. We will sponsor only those initiatives going forward, which have a clear impact on our Business Plan '26 and are supporting our targets on growth and financial performance. Since we have started NOS in the fourth quarter last year, we have basically mapped out all relevant work streams of our Business Plan '26. The value drivers and the implementation plans, including a risk assessment alongside these work streams. The image which we show here, covers 4 slides of 1 clear example, which we have been undergoing in the last 4 weeks and months. And it's actually a good start of the whole company into these new ways of working. I'm rounding up the NOS section with a statement of Colin Powel, "There are no secrets to success. It's the result of preparation, hard work and learning from failure." I completely concur to this statement. On the other side, Torsten mentioned that strong execution requires real-time data and transparency. In such way, digital enablement pays hugely into successful execution hand-in-hand with an NOS. As part of our Business Plan '26, we have, therefore, put clear investment plans in place for our ways of working digitally enabled. There are 3 building blocks to it. The first one is centered around a global SAP rollout to reach more than 90% of revenue coverage by the end of 2025 with a standardized SAP solution and harmonized business processes. This goes along with also a global expansion of our CRM and service systems solutions globally. The second building block is really focused around harmonization of our master data. And finally, the third investment goes into the upgrade of our BI systems to provide fast and standardized decision support and business analytics. And we also strive to go into predictive analytics, helping the business to make the right decisions. To close my presentation, I would like to summarize. With the BP '26, we have a tangible and profitable growth plan. We have put investment behind all the actions and priorities. We have identified optimization opportunities, which will deliver cash flow improvements over the horizon of the business plan. We have with our ways of working a clear framework to deliver as a whole organization on these targets. I'm confident that we will generate strong value generation by 2026 with this business plan. And now I'm handing over to my dear colleague, Jacob.

Thank you very much, Reinhard. So the plan is clear. We know what to do. But why have you heard Torsten and Reinhard talk so much about culture? Because culture eats strategy for breakfast, a quote from Peter Drucker that we have probably all heard before. And it is a clear risk that the inherent culture and the building ways of working in a company can derail any strategic plan. And we, therefore, need to put real action into the organization to develop the culture needed to realize our strategy. We need to translate the broad statements of empowerment, growth mindset, execution into concrete action. That is why you have heard Torsten talk about how we are setting clear responsibilities and accountability and how we are pushing autonomy and decision power as close to our customers as possible into the organization. And you just heard Reinhard talking about the Nilfisk operating system to enable execution, but not at least learning every day to become better every day. We need the right people to succeed. And as mentioned, we are investing to resource our strategic priorities. We have set up detailed staffing plans, so that we know where and when we are adding people to fuel the strategic priorities, both functionally and geographically. And we will be investing in competence and leadership development of our current organization. All of this to make sure that our structures, our ways of working and our people are all set up to support the building of the culture we need to execute strategy. We are building some critical capabilities to succeed, capabilities within solution selling, service, software and digital and execution. And we need to become much more data-driven. We'll be building these capabilities, both through adding people, recruitment, and adding new people into the organization. And lifting the competencies internally through structured learning and training activities. So within the people area, we are taking some very concrete actions to enable the delivery of the strategy. We are competing for talent in a very competitive market. So we need to stand out as a company, which is why we are expanding our internal talent acquisition teams for professional and fast recruitment process. We are looking to expand our channels to reach the relevant target audiences for new employees into Nilfisk and brand us as an attractive employer of choice. We will be strengthening our onboarding programs to make sure that new employees are quickly integrated into Nilfisk and not at least to reduce the time it takes for new entries to become really efficient in their new roles. But not only should we be focusing on new employees into the organization. We put effort into retaining our current people in the organization, our talented and competent people. And we will be investing and continuously lift their competencies and thereby the capabilities of the entire organization. To enable this, we will be adding trainers for sales, service and product training. We will build a strong learning management platform for easy distribution and access to learning for our people. We'll be investing in leadership development and the development of both current and future leaders of the company to equip them for both people and organizational growth. Leaders who can build a culture where employees can and will give their best where people, regardless of trait, background and gender, feels safe to contribute and move the company forward. And last but not least, we are reviewing current incentive structures to make sure that we incentivize and reward delivery of our key priorities. So we don't just talk about culture. We put structure and action into it. In order to build the culture, we believe we need to deliver our strategy. And with that, back to Elisabeth.

Thank you, Jacob. And if you would please stay up here because now we are moving into a Q&A session also together with Torsten and Reinhard. We've already had some questions coming in. But for those of you who wish to ask a question, the QR code is up here or you can use the online module. But the first question we had coming in is from Casper Blom from Danske Bank, one of the analysts following the company. And Casper, he asked about the opportunities mentioned. "Why is it that you can capture these better than, for example, Tennant and Karcher and thereby win market share? Or is it rather the group of small unknown competitors that you expect to take market share from?"

It's an excellent question. Let me take this on. Our value proposition is attractive to our customer base. And we pointed the 3 elements of our value proposition out in the 5 levers from the business. So we don't mind where the customers reallocates the business, if it's from a larger competitor or a smaller competitor. We have been winning market share last year. Certainly, our growth rates, if you compare them with published information from our competitors clearly are better. So we are on a successful path. We're going to present a bit later when the business leaders present the strategies and how we win share and grow our business, we'll understand more clearly. But to the question is, our value proposition, we believe, is attractive to the customer base, which let the customers allocate more of their business to us, irrespective from where the business originally came from. So we are confident that the journey can continue as it successfully has started in the last year.

Thank you, Torsten. And then we have another question also from Casper, which is directed to Reinhard. It's asking about the plan towards 2026 is quite detailed and precise on different variables. What will you do when something goes different than planned? And how flexible is the plan?

Yes. I mean first of all, we would actually alongside Nilfisk Operating System try to identify the root cause. And what countermeasures we could take? That's the first thing. And I think we are pretty close to those drivers right after we have now launched the strategy. But in any of, let's say, the plan, there will be mitigating actions. We have seen last year, and that's really one of the arguments I've made, headwinds strongly, much stronger than anybody of us expected from freight and raw material increases, and we have managed to come forward as a market leader with price increases right from the beginning. Others did follow. And that's the approach we take. I cannot give you all the answers what we will do when we have a shortcoming because that depends on the situation. But Torsten, the whole management team and I, we are fully committed to act fast and with rigor. And that helps to directionally overcome shortcomings. And we will have them for sure. But it's more the organizational ability to deal with shortcomings.

Good. Then we have an online question from Johan Eriksson from Adrigo Asset Management. And Johan, he is asking, "You mentioned full P&L responsibility, should we then expect the nonallocated cost, which is just shy of EUR 50 million or some 6% of sales when we look into the full year '21 numbers, to be distributed to each segment or region?"

Well, we will do a restatement when we are presenting our next results. In that, there will be a section of unallocated costs, which we are not distributing. We are distributing costs where we can, to have a clear business impact and show that visibly. So I cannot give a detailed answer to the EUR 50-ish million because we have not done yet all the restatements. We are in preparation of them, and you will hear more about that when we release the Q1 results.

Thank you, Reinhard. Good. Then we have Mads Quistgaard from Carnegie asking, "In order to grow relative to main competitors in the U.S. I guess you need to win among the strategic accounts. How will you ensure to win here? Is it a question about increasing your local presence with sales, service and support representatives fully to be able to serve customers' needs from coast to coast?" And before I pass this on, I'm just going to say that we will also have, Jamie, as I said before, joining us detailing this. But maybe for now a high-level answer.

No, it's a valid question, Mads. And we give a more precise and more detailed answer with Jamie in the meeting a bit later. But we have been growing last year by 24% in the Americas region, primarily driven by the U.S. So certainly, we have outpaced significantly market growth last year. And this is based on strategic accounts. We're going to share with you later the case study of how we did win United Rentals, a mega account really that contributed a significant incremental sales to us as one example how we're able to successfully win new strategic accounts. But you will also see later on that we are also growing in the distributor channel, where we have a very strong presence and how leading -- sharing with the leads that we create, with the end consumers with our distributors helps us to engage with the distributors. And this lead creation based on a very structured sales management process, has been a game changer for us in the last 2 years, mainly fueling the growth. More answers on this to come. But we are very confident that this journey that did grow -- help us to grow 24% last year will continue over the next couple of years.

So currently, we -- thank you, Torsten. We don't have any more questions coming in. I'm just looking around to see someone is pressing sent. And yes, someone was, that Claus, thank you for your question, Claus Almer from Nordea. Guidance is before special items. Should we expect special items in the years to come? On Slide 28, should it be read as overhead costs will increase. Reinhard, that's 1 of your thoughts, I guess, will increase as percent of revenue in the next years, hence dilute the margin followed by margin enhancement when we get closer to '26.

Well, yes, we will have some special items going forward, but not at the magnitude the company had in the past years. We will have some special items as there might be here and there certain restructuring business repositioning necessary. But it's more or less, let's say, not really majorly impacting our cash flow. That's why I have stipulated that. So it's a minor amount. We are, let's say, having in our business plan. To your other question, yes, we have a plan to actually increase slightly our overhead to sales over the beginning of our business plan period. We are going to see that investment in a modest increase of overhead sales, very modest increase, but it's going to come because we are requiring structural investments, whether it's in services business, master data and IT and all the other things which we have mentioned before. But there will be the harvesting phase over the course of the 5 years in the business plan towards the end where we are going to arrive at the levels which we have seen in 2021.

Thank you, Reinhard. And I'm just asking to give everyone a chance to see if there are any more questions for this Q&A session, but we do have 2 more sessions coming up. So I think with this, we'll conclude for now. Thank you for your questions. Thank you for your answers. And then, Steen, I will welcome you up here for your presentation on optimizing European -- our European leadership position. Welcome, Steen.

Thank you, Elisabeth. Good morning. My name is Steen Lindbo. I'm heading up sales for Nilfisk globally. I have the pleasure to talk a little bit about Europe this morning. And as Torsten already highlighted, we are enjoying a share of the total Nilfisk revenue of 61% within Europe. If we look at the total market, it is measured at our estimates at EUR 2.9 billion, and our revenue were just north of EUR 600 million, giving us -- that is, by the way, including a consumer business of close to EUR 90 million. So you calculate the revenue or the market share here to be just shy of 20%, 18% to be precise. And the target we've set out to achieve over the period is bringing us up towards the 22% mark of market share. You look at the Nilfisk markets here representing, it's very clear that we are well positioned across the larger markets. Obviously, the northern part of Europe being our home base, very strong position. But even down the larger scale markets, Germany, France, very, very strong brand presence across these markets. Also in the opening, Torsten was pointing towards optimizing Europe. That's the key tagline for the European business going into the next 3 to 5 years of sales. And we do still see a lot of opportunities to even drive further business within the markets. It's fair to say that the last couple of years with COVID obviously, both constraining things, but also actually helping a bit on the sales side because cleaning has become more popular, you could say, more in focus. And that helps nurture our customers to even engage more with us as a provider of cleaning equipment. And what we did early on in the period of COVID hitting us, was really saying we can continue as is or we can sharpen our approach towards our customers and potential new markets, and that is, in fact, what we did. . I call it up here sharpening the fundamentality, and that's exactly how I would describe it so from being very much focused on dealers, we went out and became more directionally focusing also on end users trying to convert them into the Nilfisk brand being buying direct or indirect. Some of the tools or the actions we're using is highlighted up here, our competitive advantages and maybe leads a little bit to Casper's question before in terms of, how do we feel we can win. If you look across these bullet points up here listed in terms of competitive advantages, there are a couple of them sticking out. One of them specifically I would highlight is the proximity of service technicians. Obviously, for a lot of our customers, service is key. Many of our customers talk about uptime. When the machine breaks down, it's about getting it fixed, repaired, so we can clean again so they can continue operating at the customer sites. So for us with a very, very strong service base, and as Torsten alluded to, service is going to be a key pillar for our growth going forward. we're going to utilize that a lot. We did that. We tested it over the last couple of years. And we know it's a good factor to add into the blend of basically talking end-to-end engagement with Nilfisk. Below here, you see recent accomplishments, and I think that the changed approach we've added the last couple of years has led to us perform better as an entity as a sales group. We evaluate our win rates, which is basically the measurement of all our customer engagements, how much do we actually win -- and we can see year-over-year, we're improving our win rates. We added 7 points improvement over the last year. We continue to grow our opportunity pipeline. So even if we've had a very nice success the last year, we still continue to expand our opportunity pipeline and work with customers across Europe to sell more Nilfisk. Another interesting point is that during COVID, we all, I guess, learned about teams and all the other virtual tools. And that's been a key part of our sales engagement over the period. Meaning, basically, we could not go and meet customers, so we had to do sales calls virtually. And we are tracking and tracing that even today because it's clear that it adds efficiency into the way you work with the markets and the customers. And you can actually apply virtual calls fairly easy. So it's a tool we use today and we track and trace our ability to keep the level up. And we are still -- as we saw during COVID, we're still at the level of 25% of our engagements with customers, actually performed virtually. Obviously, many of them with our indirect accounts versus the direct accounts. All of that has led to a growth within strategic accounts. By strategic accounts, I mean, end users converting into our portfolio. With that, as a jump of point and looking at some of the analysis we did leading up to this new strategy, there's a couple of key indicators that we can further improve on that journey we have been on for the last 2 years. If you look at this chart, there's a clear indicator that if you split direct and indirect, we are leaning more towards the indirect business. You can also see that the majority of the revenue comes from what I would call medium to large strategic accounts. And what's interesting here is that if you look at the lower part of the chart, the graph here, small dealers, micro accounts being dealers or end users. We do have quite a large portion of that. But the time we spend and the cost it takes to serve these customers is far too high. . So what we're going to embark on to further fuel what I just talked about before in terms of adding more strategic accounts to our customer portfolio. We're going to reduce that cost to serve model for the smaller accounts, direct, indirect and rechannel the efforts we used down there, the resources we use down there up towards much more focus on strategic accounts. We're going to maintain, obviously, the customer base and the good service we are performing to these guys, but we are reallocating potentially some of the smaller ones into our dealer network. We're going to apply much more inside sales, potentially even converting external resources to inside sales resources to basically set up districts and servitize these type of customers via phone or virtual engagement. Also, e-commerce is something we obviously do today, but there is a great improvement potential for us to adapt further into much more better servitizing customers, should they choose to buy our e-commerce platform. The targets we're heading for is more like a 50-50 share between direct indirect. We're going to shoot for a strategic account growth of 10% per annum. And then obviously, at the same time, as we are doing this exercise, taking out cost to serve on the smaller accounts, optimizing our margin position across the customer base. Another area that I can highlight that is what we call a little bit untapped and we've worked on and can further improve on is pricing. We've seen that some of our price positions on the products are not optimized, and we can further optimize on that going more to value-based pricing. We've also seen -- and that's basically also increasing as we work with strategic accounts across borders, across regions that our price position across markets is too different. So we need to establish better pricing, European pricing models, global pricing models, working with pricing corridors to be able to be better aligned across the various markets. We mentioned here smart discounting. There's a clear sign that we can improve in terms of how we work with tenders, tender management and how we discount our products in these situations. So investments into dealer pricing modules of our IT tools is going to be done. It's actually already in place in the U.S. You'll hear Jamie talk to that. We're going to adapt into the same way of working in Europe and thereby improving again our margin position when it comes to tender management. So all in all, we're going to come back to investing into the pricing area to be able to support the frontline people, having better tools to manage and navigate the way we work with pricing being local or regional. All this has been laid out, and we have identified, as you can see up here indicated on the slide, clear targets in terms of revenue as well as profitability. And they are done, obviously, on a global scale and being drilled down to regions, countries and even down to districts. So everybody knows exactly what to do and how to achieve the targets we've set out to achieve. Last but not least, all this does not happen by itself. We know we're going to have to invest in different measurements to the team to work with. And you see up here a list of commercial drivers that hopefully can help the team achieve what we set out to do. Starting off with a couple of ones we already engaged with sales excellence, pricing initiatives, that's been in place we work with salesforce.com for the past 7, 8 years, but we are improving on that platform and doing much more work across the teams with that. We've gone embark Jacob already talked about that into sales training. It's not a secret that during the last 2 years, there hasn't been that much activity around working on the capabilities of the team. So sales training and capacity expansion is key to our success for the coming period. Then we're going to embark on improving on our strategic accounts program. It's been in place for a long time across the markets. Again, here, we can further optimize the alignment across markets and strengthening our proposition to these type of customers. And obviously, 1 of the key targets as well is to sign up new accounts. The allocation of micro accounts, I already talked about that. We are very focused on addressing this inside sales idea. We're already doing that in a couple of markets. It's been trialed and tested and we've seen great improvements with that. And last but not least, we have a big portion of large dealers, large to medium-sized dealers. We need to improve our offering in terms of what we give to these guys to create true value around our product portfolio for these guys. And with that, I will hand over to Jamie talking about the U.S.

Good morning from the U.S. My name is Jamie O’Neill, and I'm the commercial leader for the U.S. I'm appreciated to have the opportunity to talk to you about the U.S. business today. Goals in the U.S. has been a strategic priority for the last several years. As Torsten mentioned earlier, U.S. has the largest market potential in the world, and it expects to grow above 3% for the next 5 years. We can go to the next slide, please. Our ambition is to grow from EUR 253 million to just over EUR 340 million to EUR 380 million range. 2021 was a good year for us. Our organic growth was strong, but even stronger was our order intake. We grew over 58% in orders and actually had to walk away from some business due to our supply constraints and our longer lead times. Our results in 2021 was the culmination of the hard work that was done over the last 3 years to get us to this point. But our review in the few slides coming up is, how we got here, what are we doing differently and why we feel confident that we're on the right path to building a sustainable, profitable growth model here in the U.S. Next slide, please. The journey we are on started in earnest in 2019, we went through massive organizational changes here in the U.S. From that point on, we fundamentally changed the culture and our go-to-market strategy. We started with [indiscernible] as any strategy is only as good as the people that you have to execute it. We rebuilt and reorganized our senior leadership team and then went about evaluating the talent we had in the organization. Looking at 2 main components: our people's confidence to do what we are asking them to do, but as important, even more importantly, their commitment to try. Through that process, we quickly learned that our frontline sales managers were not capable of making those assessments. They did not understand what good looked like. Historically, we would take our best salespeople, promote them into sales managers with little to no training. And unfortunately, that process failed. So we went about trying to coach up or coach out depending on their commitments and ultimately ended up replacing over 70% of our sales leadership over the next year. So we move to other roles and others exited the organization. We then looked at our sales force. We had a very flat organization with no real room to grow and develop. So we instituted a tiering system. We started with looking at folks right out of university or with a few years of sales experience and put them into a new role, a sales associate role to allow them to grow and develop. We then look -- take a look at the rest of the sales team and broke them into 3 tiers, making each step a promotion with defined qualifications to reach the next step. To help accelerate that learning curve with all these new people coming into the organization, we created a training department to help professionalize our sales team and leadership training programs. We built a culture of empowerment and accountability, giving our frontline sales managers visibility and reporting into their profitability, and then change their compensation plan to reflect their ability to not only grow, but to do it profitably. We worked on rebuilding the trust within the organization to try to create a safe environment for people to grow and to become their natural best giving them opportunities to develop and grow within the organization. Of course, embedded in this strategy is a disciplined sales management process that Torsten spoke about earlier. It's predicated on increasing our end-user touches. We have set targets for planning and executing sales interactions and they review that plan weekly with their sales managers, the sales managers weekly with their sales VPs and the sales VPs with me. We then do a review and improve of our key initiatives on a monthly basis to ensure we're on track doing what we said we're going to do. Our value proposition to our customers is our people. We simply outwork our competition. It is also, however, our product portfolio. As Torsten mentioned, we have the broadest portfolio in the industry. We can provide a total cleaning solution like no other. We have a world-class R&D center located right in the U.S., primarily focusing on our industrial and our autonomous, and they have the ability to go out to our customers to get feedback to ensure that we're providing the types of features and benefits that our customers are looking for. We also have strong manufacturing plants within the U.S. and Mexico. In the U.S. in Brooklyn Park, Minnesota, primarily focusing on our industrial and our autonomous line. Next slide, please. We have changed our go-to-market strategy after years of depending on our distribution network to drive growth for us. We have taken control of our destiny by creating demand at the end user, and then driving that demand back to our dealers. This has had a double impact. First, it ensures that we are in more opportunities. But it also brings more value back to our dealer partners by pushing more leads to them. We are partnering with our dealers at a much deeper level, working with them to create growth plans together. We review these plans on a quarterly basis. We look at their white spots and then plan together where each of our sales organizations can benefit and drive those leads back into those dealers. As stated earlier, we are out driving end user demand, while also partnering with their marketing teams within these distribution centers. For joint campaigns, webinars, customer events, we have done trainings, not only on product, but actually training their sales people to become more professional. In some instances where they are having recruiting issues, we brought our training department to them and actually done interview training, recruiting, training and onboarding trading to ensure that they not only retain their talent, but keep them because an open territory for them is an open territory for us. Next slide, please. From a strategic account perspective, in 2020, we went about reorganizing our strategic account team. We changed our compensation plans to incentivize our field sales to engage with and work with the accounts within their geographies, eliminating the channel conflicts that have been there for years that was competing goals. These are Nilfisk accounts now, and we again see entire organization to ensure we are creating a best-in-class customer experience. We then look at the accounts that each 1 of our sales -- strategic account reps was working with. At that time, each rep had over 40 accounts. We cut that to 10. We moved the rest of those accounts either to our field sales team or into our newly created inside sales organization. The impact was immediate. We saw significant growth with not only those 10 accounts, but the entire platform. We were able to use different resources to touch those customers in a more effective manner. United Rentals is a great example of this. We were able to win their core business, taking it away from our largest competitor here in the U.S. In 2020, they launched a new concept around Facilities & Flooring solutions as a separate business, and we were awarded that business in 2020. Last year, they opened up 18 of these stores was an aspiration to grow to 85 over the next 5 years. Through this process in 2021, we were awarded the vendor of the year due to our organizational engagement from sales, service, marketing and training. When we went down to receive the award, the folks at United Rentals remarked that a company of our size has never won the Vendor of the Year. They were shocked at the amount of time and energy and support we could put in from a company the size of ours. Just as important as the growth potential that United Rentals can bring as a customer, as a partner, it's going to allow us to expand our go-to-market strategy. Using them as a demonstration arm, we will be able to get into white spot areas where we never have had good distribution to utilize them and take some more business direct to the end user. Next slide, please. So for 2022 to 2026, we will continue to focus on our commercial strategy, industrial vacuums. We have invested in 3 business development specialists to help drive growth within this product line. We have a clear value proposition, we can provide innovative solutions focusing primarily on the Food & Pharma segments. We will continue to focus our efforts on Autonomous as the market here in the U.S. continues to be in high demand due to the labor shortages each industry is facing. Strategic accounts, we will continue to create a more professional sales organization through a selling -- solution selling orientation, working to understand our customers' needs as an organization, and then tailoring our offering to ensure we beat those needs, moving away from a vendor into a trusted adviser. As Torsten mentioned earlier, service-as-a-business will be a big focus for us. For us to truly acquire and retain because national accounts, we need to have a more robust service business. We are investing heavily in resources, both people and tools to drive growth and bond our customers to Nilfisk through a best-in-class service organization. To be able to keep up with this overwhelming demand, we will invest also in expanding our operations in the U.S. to expand our ability and capacity to produce. As Reinhard mentioned earlier, we will also invest in a new ERP system to allow us to create a better experience for both our internal and our external customers. We will also create an HPW business unit that will enable this platform to grow, becoming more agile to take decisions quicker and to drive long-term sustainable growth. Thank you. And with that, I'll hand off to Flemming.

Good morning, everyone. My name is Hans Flemming Jensen. I'm heading up our Specialty business. Really excited to be here today to talk to you about our industrial vacuum solutions or IVS, as we call it. IVS is by no means a new thing in Nilfisk. We have decades long of legacy knowledge within this field. But in the past couple of days, this business has seen loss of momentum and stagnating growth. That's what we want to change with our Business Plan 2026 on our growth plan for IVS. So the way we're approaching IVS, although IVS is not new, the way we're approaching it in the Business Plan '26 is new. And I'll come back to that in a couple of minutes. But first, I just want to talk a little bit about what is IVS actually. We're looking at an addressable market of more than EUR 600 million. The verticals, which are served by industrial vacuum solutions are typically highly specialized customers, often very regulated operating in regulated industries. Its segments such as manufacturing, iron and metal, food and beverage and the pharma industry. Our offering within IVS spans from mobile solutions, mobile vacuums, all the way up to very, very specialized and customized systems and even systems that are built into our customer systems and then sold on for end users. The last part is what we call our OEM business. So as we've heard others talk about, Jamie and Torsten, even within IVS, we have a very, very broad range of solutions. Our products in IVS have very, very high quality. I actually encourage you if you ever get the chance to get your hands on 1 of our stainless steel industrial vacuums, look at the weldings, look at how the product look, this is perfection, and they need to be because they operate in sensitive areas. All our customers operate in sensitive areas where the health and safety of their employees are absolutely critical for success. And also us, as consumers, whether it's Food & Beverage or whether it's in pharmaceuticals, we heavily rely on clean environments. So with our high-quality products with our very, very broad solution range, and then 1 interesting thing to top that off is that we are actually certified for regulatory needs, that's hugely important for our customers within IVS. We top that off with decades-long knowledge and know-how around these solutions and our ability to customize to our customer-specific needs and we have a winning formula. And then we amplify that with Steen's global sales coverage. So we are very well positioned in IVS and there's a real tangible opportunity here for us to grab. If you look at our numbers, we had a revenue globally of EUR 64 million in 2021. As a leader in this market, and with a fragmented competitive picture, we should be doing much more than that. And that really speaks to the long-term potential of this business. So we have reasons and basis to be bold in our ambitions. And we are, as you heard Reinhard say earlier, we're targeting a growth organically of EUR 20 million to EUR 30 million over the next 5 years. That's roughly 40% growth. So with the potential and the ambition in place, let's look at the point of departure for our business plan and how we're going to execute this. As you can see on the graph here, to the left, the IVS business was actually doing quite well in the early teens with a nice growth. But then in '18, we implemented IVS into the matrix organization, and that caused the business to loss capabilities and loss -- lose momentum. That we want to change now with our Business Plan '26. The first thing we've done is that we've carved out IVS as a separate business unit, as you also heard Torsten talk about before. We're doing that for 2 reasons. First of all, we want to create a more entrepreneurial environment for the Specialty business to cater both for the Specialty needs of this business and also to get speed up. And the second thing is we want to create accountability. Torsten also mentioned that. We have P&L accountability now with this Specialty business unit, IVS. So basically, what we've done is we've taken the entire value chain of IVS and carve that out except for sales. We want to leverage Steen's global sales coverage, and we want to be continuing to doing that. We don't want to create 2 competing sales teams. So basically, what we're doing is, we're taking all other functions and put that into a separate business unit. And I'll give you a couple of examples of the organizational drivers behind. If you take R&D, for example, we want to get the innovation rate up. R&D within this area is different than the rest of Nilfisk R&D. And in the past, IVS has been deprioritized in R&D, that we want to change. We want to get the innovation rate up. If you take another example, we are establishing a commercial center of excellence. They have 1 core task and that is to make sure that it's easy to sell IVS for the global sales team. And then another example is, we are creating a key account and OEM, OEM is the 1 I mentioned before, where we have systems built into other people systems. We want to make sure that we have a strong function with technical capabilities and know-how that can also serve our global customers and our OEM customers. And then generally going to be supporting the country sales that [indiscernible]. These organizational drivers are by no means coincidental. They all play directly into the 4 key building blocks of our IVS growth strategy. First of all, we want to be expanding sales coverage. We want to get more people on the ground to sell IVS. That's also what Jamie just talked about, where they added 3 business development managers in the U.S., specifically focused on IVS. Then we want to increase sales efficiency. We want to get the sales per FTE up. We're going to be doing that through the Commercial Center of Excellence that we established, through training, through marketing, through technical support all the way through. Then we've got to be playing to our strengths. We know we're strong with our value proposition. We know our customers in the regulated area like our products and love our certifications. So we're going to be doing more of that. We're going to be targeting & Pharma much more, and Food & Beverage. And then finally, we're going to continue to make great industrial vacuums. We're going to continue to be able to customize our systems to the very specific needs of our customers. These 4 building blocks, all come into play during the next 5 years. Here near term, the key thing is to rebuild. We lost momentum. We want to rebuild that and we've already started. We strengthened the sales team. We have a strong business unit leadership in place already, and we are recruiting sales specialists in our focused countries to get the sales of IVS up. We've also established a Commercial Center of Excellence, and we're going to be targeting a new go-to-market approach, and we're going to be much more involved in pipeline management. The sales cycle on IVS products is longer than traditional Floorcare products or other Nilfisk products. So sales management here is absolutely key in managing the pipeline. And then 1 interesting point here is, we actually have inventory of IVS. We can supply IVS products despite the global supply chain crisis. So we're going to be leveraging that short term and make sure that we can serve our customers with IVS products. Moving further along in the business plan period, we're going to be expanding our capabilities. We're going to do more of what works. And then we're going to expand our production capacity so we can sustain the growth that we're targeting with this business. So I think with that, -- just want to leave you with 3 key takeaways on Nilfisk IVS. There's a real attractive market here with high value creation. We serve only 10% of the market today. We can do much more, and we have the value propositions to do so. And finally, we have a plan. We have a plan in place, and we know how to execute it, and that's what we're going to be focusing on for the coming years. So with that, I want to thank you for the opportunity to be able to share my passion for IVS with all of you and also all of you watching online. Thank you very much for the opportunity. And I'll hand over to my good colleague, Soren Pap-Tolstrup from Operations.

Thank you, Flemming. Good morning. I'm Soren Pap-Tolstrup, Head of Operations in Nilfisk. Here we go. As Torsten stated in his introduction, Nilfisk is global. And so indeed, is our operations. We have a significant both distribution and manufacturing presence in each major region in the world. And that means that we have not only the global coverage, we also have the regional presence to build on when we are building for growth, that we believe gives us a good foundation to start from. The Business Plan '26 presents us with 3 overall priorities in operations that we are to work with. The first is capacity. It goes without saying, in order to grow, we need to have the capacity in place that we need, where we need it and when we need it. The second is supply robustness. Simply put, we need to have the raw materials to build from in place, where we need them and when we need them. And third is obviously cost competitiveness. It goes almost without saying that in a business like ours, raw materials and the cost of raw materials plays a key role in the development of our margins and for us to reach the targets we have for our profitability margins. Before I go into talking more about the priorities ahead of us, I want to talk a little bit about the event of last week in the U.S. that I suppose most of you are aware of. In the early hours of last Wednesday, in the early morning, a tornado hit our distribution center in the U.S. in Springdale, Arkansas. It caused severe damage to property and to assets. Thankfully, nobody was injured. The tornado hit in the very early hours of the morning where only 2 people were present on site, and they made it out unharmed. The distribution center in the U.S. supplies our customers in the U.S. with imported machines as well as with spare parts. The manufacturing sites across America, they ship direct and those shipment flows obviously continue unaffected. The distribution center is also the hub for export to Europe and other overseas locations of machines from the U.S. and in particular, Mexico. Our main warehouse at the distribution center was partly destroyed by the tornado. We have a secondary building that is smaller, that remains intact. We're working still to determine the damage, but it's clear that this has caused some interruption to our deliveries in the U.S. and to our operations. The good news is that we have resumed shipments, we did resume shipments on a very low scale already before the weekend out of the secondary building we have in place. We have secured a new building in the immediate vicinity of the destroyed building. . That we can begin today to move assets and inventory into. And in the immediate future, we can begin to receive and turn around machines in the new facility. We have furthermore obtained access to the destroyed building, and the team is in the process of recovering the inventory and the assets that are salvageable. We still don't have a full overview of how much is salvageable, it's obviously not everything. So, back to our priorities. You just heard Steen and Jamie outline the growth ambitions in the main markets of Nilfisk. And it's a fundamental prerequisite to be able to grow and deliver that growth that we have the asset, the capacity in place to deliver the growth. Now when we talk about capacity in Nilfisk, we consider ourselves to be an asset-light operation. What we do in our factories is almost exclusively assembly. We have a little bit of plastics manufacturing in a couple of sites, we have a tiny bit of metal fabrication, but for all practical purposes, we're an assembly company. That means for asset-light. It means that we do not rely, as for example, would be the case with the process industry, on big and capital-intensive equipment. We rely mostly on lighter equipment for production lines, on lighter tools, light hoisting crane equipment and so on. So that provides for a relatively asset-light setup. We believe that we are generally in a good position to accommodate growth when it comes to capacity. In most cases, capacity at us really amounts rather to how we fill our production lines with operators and whether and when we add additional shifts to production. So in the majority of cases, we have the capacity in place that we need. That being said, we still have a schedule in front of us over the next 5 years of moderate and targeted investments in physical capacity. The most immediate, you heard Jamie briefly mentioning that as well, the most immediate capacity investments that is in progress this year is adding an assembly line to the industrial segment in our Brooklyn Park, Minnesota facility. This is, at the moment, the only place where we had hard physical capacity constraint, and we're in the process of loosening that up. Later this year, we will be conducting some targeted investments in some of our plastics manufacturing in order to upgrade capacity and technology as well. In the years forward, there are other targeted investments in manufacturing and distribution and in facility space that we're going to be making. And altogether, we will moderately increase our investment level in operations to a level of around 2% sales per year in CapEx. Supply robustness. Before I look ahead and talk about how we are going to be working with supply robustness, let me just briefly draw up the supply challenge as we currently see it. Part of the story is 1 that you know. During the period when global activity bottomed out in the peak of the first wave of the global pandemic, demand patterns reduced and shifted in nature causing imbalances in both global capacity, supply markets as well as freight. The composition of demand changed significantly during the pandemic, while many countries were locked down. And as you all know well, this caused capacity constraints in particular, in the electronic sectors, semiconductors, microchips. . The subsequent surge in demand still with the market out of equilibrium led to significant and sustained shortages, especially on electronic components initially. The recovery progressing then led from that into additional sectors to raw material constraints in general. We are seeing constraints in basic materials and metals, in energy, and this is impacting a number of the categories that we depend on in our assembly. Two examples are included over here, the metal parts and motors that each depend on a wide range of underlying raw material, basic material indices. At the same time, the surge in global demand and the shift in demand patterns put significant pressure on global freight markets. And as you know well, this has caused -- well, for 1 thing, it has caused increasing freight cost, but as significantly for us, it has caused increased transit times, delays and unpredictable arrival times of materials. These things are impacting us relatively widely. A few examples of what we're dealing with is electrical components, the global shortages of microchips and other basic parts that cause disruptions in supply of electrical components, which are part of virtually every type of machine that we're making. We see engine suppliers restricting volumes of engines across suppliers, putting caps on the volume as well as the timing that we can obtain from suppliers. We see extended lead times and capacity constraints on engineered metal parts. And significantly, what we are exposed to and what we're experiencing, second-tier suppliers behind us. They experience the same thing, and that means that these effects propagate and lead to intermittent supply challenges more or less across all categories that we are working with. Now while it's a fact that we're impacted by the global supply crisis, that's not the same as we can't do anything about it. We can't change the world markets single-handedly, but we can work with the factors that we can control or at least influence and we can work with our own resilience to stand firm in the face of external supply shocks. Simply put, the things we can do something about is how we source and what we source. How we source comes down to topics such as how can we reduce dependency on single sources? How can we create alternatives or redundancies through dual sourcing? Suppliers where we are limited share of wallet, maybe not the top priority, how can we consolidate volumes, consolidate products and gain greater clout and negotiation power with suppliers. . In terms of geography and location, can we localize demand if only at least to shorten lead times and increase predictability and reduce our dependency on the global freight markets. The house have to go closely together with the [ watch ]. When we talk about the [ watch ], many parts we use are designed specifically for our machines that give some advantages in terms of how our products are constructed, but it also causes dependencies. So a priority for us is to say, can we in different areas, use more standardized products and create substitution and alternatives to components so that if we run into a constraint in 1 area, can we make it easier for ourselves to go elsewhere and find alternatives? In cases where specifications are unnecessarily tight and put very narrow frames on what we can use are the areas we can work with our specifications and create more room to maneuver and give ourselves again, more alternatives and more opportunities to substitute and stay flexible. And lastly, across our portfolio, across our machines, can we find places where we can, to a greater extent, share components between machines and thereby reduce the overall number of parts and components that we depend on? The coupling between these 2 is important because typically, how far we can get with the commercial levers depends on how good we are working with the technical side. Example, if we have a component that is very tightly specified. It's designed uniquely for that particular purpose and that particular machine. It's designed with suppliers, nobody else can make it. We don't have a lot of alternatives, don't have a lot of commercial opportunities. If we can work technically with design and specifications and create room to maneuver, we create commercial opportunities that we can then go to work on. So therefore, the commercial and the technical side have to play together. Now -- as I'll talk about in a minute, these levers that we are going to work with when we talk about robustness, to a large degree, the same levers that we need to work with in order to sustain an attractive cost position of our materials. It's the same interplay between technical and commercial levers that gives us room to substitute and stay robust, but also that give us commercial opportunities to reduce cost and sustain margins. Therefore, we have launched an initiative as part of Business Plan '26 to pilot these opportunities together and see how that goes hand in hand. We've here in the early part of 2022, launched a fairly large pilot initiative to try out and demonstrate the potential for robustness and for cost reduction on the defined share of our purchasing spend. This is a broad cross-functional initiative. It's led by our sourcing organization, but there's broad cross-functional participation from R&D, from product management, from engineering, from manufacturing exactly to make sure that we can take a broad and holistic approach and thereby create commercial opportunities in the way we source both creating flexibility and resilience, but also opportunities for cost improvements. Now this is still early days. The team is working, as we speak, creating and qualifying ideas, drilling them down to concrete and executable opportunities that we can act on and realize. It's early days, we have to see where it leads. But so far from what I've seen, I'm very optimistic that we'll be able to make a difference. So whereas raw materials are key to robustness and to making sure that we can sustain growth, they are obviously also key to our margin ambitions in a business like ours that is predominantly assembly, goes without saying that raw materials is a significant component of our cost of goods sold at group level. Now we made a number of deep dives in different parts of our spend in order to determine where do we sit on opportunities that we can realize if we invest the time, the effort and the resources in working in a focused manner with both technical and commercial levers. I selected a few sort of the showcased opportunities here on the left, while this level may not be representative across the board, it does tell me that we're sitting on pockets of opportunity, also from a cost perspective, that we can access if we manage to work focally with a combination of technical and commercial levers. And again, just like when we talked about robustness, it's about working with specification with switchability, our ability to switch and create alternatives and thereby create commercial opportunities that we can pursue. And back to the margin aspiration that Reinhard outlined earlier this morning, the material cost savings that we're targeting here is obviously a key part of fulfilling that ambition. It's not the only part, but it's an important part. So as we execute on these priorities and operations, we will, at the same time, be going through 3 very fundamental changes to what we focus on and how we work in operations. One is the question of what focus drives our agenda. Those of you who know us well, will know that for the last many years, in the operational side of our business, the agenda has been very much set and driven by restructuring and consolidation of footprint. In the years ahead, that focus will shift significantly and shift a lot more to process and standards and continuous improvements on the way we are working within the structural setup that we have. The second change is that for the better part of the past decade, we have been an integrated globally organized operation. That has surfaced well in many ways. It has created specialization. It has created a global alignment in many areas. It has created a concentration of capabilities and of skills. But with the requirements of the business plan ahead and with the growth aspiration that is ahead of us, we need to find a way now to move the different parts of operations closer together and to move operations closer to our customers and to our markets and to our customer, to our counterparts in the front end of the business. And therefore, we'll be moving towards a more regional setup of operations in order that we can be closer to the markets, and we can be a closer partner to our front end and move as much mandate and decision-making out to the frontline as possible, still within a defined global frame. Lastly, you will see a recurring theme across different areas of moving from fragmentation towards robustness. I'll talk significantly about robustness when it comes to material supply. That's 1 of our immediate pain points to make our supply more robust in the face of external challenges. But you would see the same pattern when we talk about, for example, IT systems, ERP systems that Reinhard briefly alluded to, you'll see it in terms of processes, location of capabilities. So really 1 of the guiding principles out in front of us in operations for the next 5 years is going to be the topic of robustness. And with that, back to you, Elisabeth.

Well, thank you, Søren. So that concludes the second part of today's presentation. We've heard from Steen on Europe. We've heard from Jamie on U.S., from Flemming on IVS and now from Søren on supply chain robustness and how to harvest a lot of the opportunities we have there, and we move into Q&A again. And I won't go through the details because I can see questions are coming in. So I'm sure that you all have them by now. Jamie, welcome back. And I think I will start by directing a question to you. Driving service in the U.S. must require a large network given distances. Will you own this yourself or use external service suppliers? And this question is from Casper Blom at Danske. Thank you, Casper, for this.

Yes, that's a great question, and that is the ultimate challenge that Nilfisk has faced here for several years. It's always been looked at as an either or, either we service through distributors or we go full in with our own resources. I think what we're working on now is a joint group. So yes, we are going to invest and have more direct resources, but we will always continue to rely on our dealer partners to supplement that. And it's going to take time for us to get to the -- a number of resources for us to be able to cover the entire U.S. So for now, it will be a joint effort distribution and with our direct resources.

Thank you. And then while we have you on the line, I'm going to continue with another question that came in regarding the U.S. from Kristian Tornoe at SEB. Kristian is asking, what is the duration of your contract with United Rentals? And what is the average duration of contracts with strategic accounts? I don't know if what we will -- yes, but to see if you can elaborate a little bit on this, Jamie, please.

Sure. United Rentals specifically is a true partnership. So there is no contract beginning, end. We feel that we will be with them for the foreseeable future. The growth strategy, especially in these flooring solutions is for the next 5 years. And we are ramping up our capacity to be able to handle these new product demands that we're facing. In general, from a strategic account perspective, typically, they could range from 1 to 3 years in duration, where we have contracts to supply equipment for these strategic accounts. So it varies.

And then Kristian -- he had 3 questions. I'll continue with the second 1 here. Does the high level of virtual customer engagement mean that you need fewer salespeople compared to the pre-pandemic level? And I guess this is both for you, Steen and for you, Jamie. Do you want to go first?

Yes, I can start. I think you will see us adding on people primarily. So we'll keep the field force as is and then adding resources internally, that's going to be the preferred model. And that's how we've done it in the markets we've tested it out so far. So not going to scale down in the markets, in the field teams.

Jamie, do you have something to add here?

Sure. Absolutely. And I think what we've all learned through the pandemic is the power of what we can do virtually. And through that, we've invested more heavily in our inside sales team. And we've seen great success with utilizing our inside sales team to reach out virtually to qualify better opportunities before we send 1 of our more expensive resources out. But to Steen's point, our value proposition is really to get out with the end users, working with our dealers, hitting out to our strategic account locations to ensure we're providing a more consistent message and a better customer experience. So we will still continue to invest, but the learnings that we got to the pandemic on what can be done virtually through better videos and understanding service opportunities, diagnosing service opportunities virtually, all these things are in the works due to what we've learned through the pandemic.

Okay. Thank you, Jamie. Then we move on to products. We have a question from Casper Blom on this. And I guess some of this will cover also in the next section where Pierre will speak to products, but seen maybe more from the customer and sales perspective, we can cover it here. So Casper is asking, the lifetime of products, are customer happy with the pace of which you're bringing new products to market. Do you have the right products now, seems that there was a scale back in the numbers of new products brought to market in recent years? Do you want to start off Jamie, please?

Sure. The short answer is no, they're not happy. And of course, they want to see a faster pace. There was a bit of a scale back as we focus more on our autonomous range. But we do have some very good products coming now. And as you saw from the plan from Torsten, there's going to be a double down investment in terms of bringing new products to the market in a more innovative way, in a more modular way as you'll hear about later. So we're very excited about that, and we do have some new products coming out now. But yes, we did see a scale back. And yes, our customers are always looking for a little bit faster to market when it comes to new products.

Steen, do you want to comment as well?

I can add a couple of comments. I think it's fair to say that over the period where we have invested heavily into the autonomous equipment we have right now, the standard machines, the manual machines has not been in focus. And as you will hear Pierre talk to later on today, we're going to double down back on that now, and you'll see the novelty level increase on manual machines as we go forward. But that autonomous piece has been hitting heavily on the investment rates into R&D. But I will say, a little bit like Jamie is saying, obviously, customers ask for new things constantly. But I mean our numbers prove that it's not exactly like we've been hurt in terms of sales because of lack of products. So I think we're doing -- we're doing fine, but could we use facelift new products? Yes, absolutely.

And hence, Flemming, do you have an IVS perspective to add to this?

Maybe IVS as a specialty business is a little bit special because yes, our customers are happy with the products. And as you recall, just before, we have products that are pretty much standardized mobile vacuum. We just came out with a new battery vac. Imagine a big industrial vacuum line moving around in the sensitive environment without a cord. So basically a cordless industrial vacuum, and that's a huge success. We just launched it. And then looking at the other side of the business where we customize, we basically make new products every day. So IVS specialty is a little special in that regard.

Thank you. Then we have from [ Escrisco ] Kaneigi, what is the sales split by channel in the U.S. today? And where should it be at in 2026? Over to you, Jamie.

Sure. And primarily still we are a dealer business. In terms of our ambitions, we want to see our strategic accounts, our direct business grow. But at this point, we're over 50% is over in a distribution channel.

Then we have a question from Claus Almer from Nordea. Key growth will come from direct channel, how to mitigate possible channel conflict? Jamie, you mentioned best-in-case R&D center in the U.S. Why is Nilfisk -- oh, that's the second question, sorry. So key growth will come from direct channel? How to mitigate possible channel conflict?

We're obviously focusing a lot on that, but it's not so that we're going to drop the indirect business, the indirect business is at core of Nilfisk. We're going to maintain that. And also you saw the initiatives, the new programs we're going to instill and upgrade is very much going to cater for the partnerships with our dealers. So that's not going to be hurt, at the same time, we know there are businesses out there that want to be servitized directly, and that's where we're going to be aiming for. So we're not going to jeopardize our dealer business in any stretch of imagination.

And then continuing with the second part of the question directed to you, Jamie, you mentioned best-in-class R&D center in the U.S. Why is Nilfisk's market share within these segments somewhat below Tennant in the U.S.?

Yes, that's a very fair question. And I believe we've suffered from some of the decisions and strategies of the past. If you look at where we are now, we are gaining market share on the market. That includes Tennant. So from a new product perspective, we've talked about that. We've had some delays, but the research and development team has done a fantastic job to understand what the market is looking for, and we have some really robust and great plans for new products that are coming. They're just coming a little bit later than any of us would like.

Then a question from Quistgaard at Carnegie. What are the most important parameters, evaluation criteria when tenders are being evaluated? Is it usually a question about price? Steen or Jamie, who wants to?

Yes, I would say it's not -- certainly not always price. It's the total package deal, right? And as I also alluded to in my presentation, service and the aftermarket piece is key to a lot of the deals we are making with strategic accounts. And I would actually say property price comes second. So not always the lowest price that wins, which gives us a benefit specifically Europe with our very strong service setup. So I would say, not always price, but obviously, price is important.

Jamie, do you have something to add?

In the U.S., we're never going to be the lowest cost. So certainly, price is important, but it's really about the value creation, do they see the value for the cost that you're supplying. And we're able to show that value through the efforts that we've been doing over the last 3 years. So if it's a price game, we can't win because we're never going to be the lowest price in the market.

And then we have 1 more question, but I'm going to ask you, Reinhard, I think, to come up here and take that. It's from Kristian Tornoe at SEB, and Kristian is asking about the U.S. DC tornado event. So are the assets impacted by the tornado fully insured against such an incident?

Well, we have insurance covered for our inventory, but also for the assets which we hold. So it's leasehold improvements, and it's actually a rental building, but we have coverage. But we are in the midst of the negotiations with insurance, but I cannot give you exact numbers of that. As Soren has alluded, I mean, we are identifying now what is the real damage what can be recovered. And then in the aftermath of the next weeks and months, we can really give a better picture. But overall, we have insurance cover. There might be a residual left us, but it's, let's say, a manageable amount.

Thank you, Reinhard. And then I think that we conclude on this unless we have more questions coming in, it doesn't seem like it. So we will conclude on this Q&A session. Thank you for really good questions. Thank you for your answers. We will take a coffee break until 11:30, where we resume back here. Thank you. [Break]

Welcome back from the coffee break and welcome back online. I'm going to welcome to the next section where we will have 3 different chapters. First, leading with sustainability, then Pierre will come and talk about leading with sustainable products. And then at the end, Torsten will come back and talking -- to talk about building service as a business. But Camilla I will hand over the stage to you. Welcome.

Thank you very much. Now let's talk business. My name is Camilla Ramby. I am heading the marketing function that also covers sustainability here at Nilfisk. So Nilfisk has been active on the sustainability agenda for many years, and we've driven very good results. But it's also been an area that we, such as other companies have been running on the side and that is changing now. We have made some strong commitments on sustainability that we've anchored both in our value proposition, the value proposition that also Torsten presented earlier today and in our business plan. We acknowledge the importance of reducing our climate footprint. We've scoped our commitments to reduce carbon emissions. When we look at our direct emissions, what is also called Scope 1 and 2 emissions, they predominantly come from our production facilities that consume electricity and gas. Then we have a very big fleet, both service lands and our sales reps are also driving cars. They consume fuel. But our direct emissions, they only make up 1% of our total emissions. 99% are indirect emissions where the vast majority, 85% are then from our products. So the use of sold products also called Category 11 is actually driving the vast majority of these emissions. And there's a big difference between the product categories. So when you look at pressure washers, even though it's only 20% of our business, it actually makes up 70% of our product emissions, whereas Floorcare, which is half our revenue is only 11% of our emissions. So big differences between the different product categories. So as I mentioned, we've been active on this agenda for years and driven good results. In 2021, we got a silver rating by EcoVadis. The EcoVadis is the most trusted supplier of business sustainability ratings. We scored 65 points, with only 2 points from gold, and it places us in the 91st percentile of all companies rated globally. Then the CDP. Back in 2018, we got an F, F is for failure. We have changed that considerably. In only 2 years, we lifted our F score to an A-. That's a leadership category. And please bear in mind that these rating agencies every year, they're lifting the bar. So maintaining an A- actually proves a solid improvement from prior year. Then we're very proud that we sign up to the Science Based Target Initiative. That's the only global initiative that links company's carbon emission targets with the Paris agreement. We signed up, and in January of this year, we had our targets validated. It was a 2-week auditing process, and we had them approved, Scope 1, 2 and 3. Only 38 companies in Denmark have had their targets approved and globally, 1,270 and Nilfisk is among these. So we're very proud of that. So we're already in the leadership category, but we are accelerating that. We want to be the leaders in a category of sustainability. So we've set some very ambitious targets, both on climate action, but also on diversity, which is also being a sustainable company. By 2030, we commit to reduce Scope 1 and 2 emissions by 35%. Also, in 2030, we commit to reduce our Scope 3 emissions by 48% that's a massive reduction. And then on diversity, we've said our first target on gender diversity, about 25% of our leadership positions should be held by women already by 2026. So we made some ambitious targets. We have them in front of us, and now I'll talk more to how we're going to achieve that. So Scope 3, this was the 99% of our total emissions. What you see is the Science Based Target pathway. So they set forward a pathway they'd like to see companies follow. And we follow that very closely all the way towards 2030. We've set a very bold target for new product development, 25% reduction on CO2. This is something that my colleague, Pierre will talk to in a little while. So that's a key driver. But then also by promoting low-emitting products, by Regionalizing our supply chain and also looking at procurement, our sourcing of products, components, material we will meet the target we have set forward. We are, of course, also working on Scope 1 and 2. That will predominantly be transitioning to green electricity at our facilities, which is also a transition that we have already started. So we monitor our employee base on a number of parameters. Gender is just one of them. When you look at the entire company, then today, 29% of the entire company is women and the remaining 71% men. When we look at leadership positions across the company, 28% are held by women, and that's actually an increase from 22% in 2020. The issue we have is that in senior leadership, and we define that by Vice President or not, we only have 14% today. So we have set an ambitious target of increasing from 14% to 25% by 2026. That will require global training. It will require mentor programs identifying the female talents. Of course, we will also need to attract talent from externally, so we need to review our recruitment processes and make sure that we do targeted employer branding. So how are we going to deliver on all of this? We have recently reorganized. So we have hired a Director of Sustainability and ESG and that person is joining us tomorrow and will report directly to me. Then we make a huge effort in -- we have a data-driven approach. So monitoring, tracking sustainability KPIs just like we monitor our business and track our business. We have various online tools. Some we can monitor live real time and others, is there more manual. But we monitor and track and we make sure that we cascade all these targets throughout the organization. So it's being tracked and monitored on a market level all the way up to the boardroom. So we have, as I said, set a very ambitious target of becoming the leader of our industry within sustainability. We have targets, ambitious targets, both on climate action and on diversity. We have clear plans of how we are going to achieve those targets. And that is not only important to Nilfisk, it's actually important to the planet. So with that, thank you very much. And I'll hand it over to my colleague, Pierre.

Thank you, Camilla. Hello, everyone. So I have the pleasure for the coming 15 minutes to talk about leading with sustainable products. My name is Pierre Mikaelsson, and I actually had the privilege to be heading up the R&D in such a long history company and working with these interesting products. So before we go into too much of details, I just wanted to recapture a little bit what already presented by Torsten and previously, what products do we talk about here? So we have 3 very clear product categories, so Floorcare, cleaning floors in different shapes and forms. That's 1 clear category. We have vacuum cleaners, basically extracting dust and other dangerous equipment. And the third 1 is pressure washer, which is basically cleaning with high pressure washer. So this is a fantastic large portfolio that we already have today with many opportunities and operating in both very harsh industrial spaces as well as commercial spaces. And the revenue split you see here, so it's 34% Floorcare, 20% vacuum cleaners and 14% pressure washers. Okay. Great starting point. We have a great portfolio. So the question now going forward is how do we fuel this already great portfolio with innovations in order to advance and take the next steps? First, I want to start off with mentioning that we will reinvest 3% of our revenue into R&D during this 5-year plan, this long-term plan that we already worked on here. And the R&D investments that we are splitting to match the revenue split that we have in our products. You can see we'll spend 50% of our R&D investments into Floorcare, 20% into vacuum cleaners and 10% into pressure washers. One thing that I want to point out here more clearly is that we will invest up to 20% in software and technology going forward. And that is a big change and a big increased ramp-up of our investments in that area. And during this presentation, I hope it becomes clear why we're investing so much in this area going forward. Also, you can see here that we have our R&D centers located in all the major regions already in Europe. Of course, here in Europe, we have all of Americas already mentioned, and also in APAC. Lead with sustainable products, that's our aspiration. And the value proposition that we are basing this on is our key pillars, optimized for life cycle services, already mentioned, differentiate with customer-driven value proposition and innovations, leading sustainability commitment. Those are our 3 key pillars that will actually guide us through when we develop new things going forward. That's all great. What we also have identified here are 3 very important enablers, connectivity and user interfaces to underpin that, modular product architectures, which we believe is very fundamental and very important to create the scalability that we want to have in the future, energy and resource efficiency. Camilla already mentioned those very ambitious target that we have set up. So of course, we need to work on that. Okay. So we have those pillars. We have our enablers and then how do we take actions? So 3 things that I will walk through here going forward. Upgrade our existing range. secondly, establish modular product architectures and thirdly, integrate autonomous. So let's start with the first one, upgrade the existing range. We have several upgrades coming very shortly, which we think is very important to bring to our customer in a more short-term thing. User interfaces, new user interfaces will enable more easy-to-use products, more safe operations for our users with new interfaces, could be interfaces like this with touchscreens, but also other means. Second portion is connectivity. We will connect all our products that we have already today, which will also enable new data-driven value propositions, of course. Cost reduction is also part of an upgrade in my opinion, because we have already heard here about supply chain constraints, cost and the environment we're living in now. So this value engineering is always something we constantly do to keep our portfolio competitive. Sustainability is, of course, a more long-term target, definitely. It takes some time to get the right solutions going forward, but also already short term, we have some things could be replacing combustion engines or fossil-driven engines with battery-driven engines. It could be new materials, things like that. Finally, battery technology. We will have a new lithium ion offering coming up very, very shortly, which will increase the productivity for our customers tremendously, very, very important. So all in all, great summary of upgrades that we will start implementing very, very shortly based on our guiding pillars already mentioned before. Okay. So upgrading, next item, establish modular product architectures. So what does that mean? It means going from all the components we have in our, how to say, supply chain or in our portfolio, building up our products today, categorize them into different modules with very specific functions and strategies connected to them. Once we have defined that, we can also define, okay, what kind of variance of each module do we need? How many variants, do we have 3, do we have 4 variants, should we have 1 variant depending on the strategic choice of each module. And then finally, when we have created this landscape, we can easily create a variety of configurations of products in a much, much easier way. Good. Sounds a little bit introverted and technical maybe. And I just want to emphasize, that's absolutely not the case here. Why do we do this? Firstly, it's to drive higher sales because the more variations we can create in a smart way to better offer, the more things we will have to sell. That's very important. So it's going more from a design to order thinking more to a configure to order thinking, very important. And that will also create a much faster innovation cycle because we can selectively choose where do we want to innovate and replace whatever feature or function we want to improve. Second, serviceability. Of course, when we have fewer components, we have more clear interfaces, it will be easier to service. That's no question about that. So it will be lower services costs. Higher uptime, definitely because we have fewer components automatically and also longer lifetime of each and every component. Lower costs. When you have an architecture that you can scale both from, how to say, performance point of view, but also operational point of view and also product leadership point of view, you will definitely save cost, especially in operations, easier assembly, easy routing in factories. But also, in addition, if I'm looking on my own function here from an R&D productivity point of view is also a big game changer because we can really focus on where we want to put our focus. And finally, resource efficiency. -- very, very different. Finally, but not least at all, is sustainability. This is our ambitions to lead with sustainable products. So why -- what does modularity have to do with sustainability? It means definitely we will have fewer parts. And also, what we can do already when we're creating the architecture is actually building in what are the sustainability levers we want to pull for different modules in different directions. So that is a very important driver. Reusable materials and lower consumption and materials. So all in all, if we summarize this, this is a scalable way of working where we can address the strategic topics we have. And finally, I would say, in the future, we will innovate with modules, not necessarily product by product by product, but innovation with modules. Integrate autonomous. Over the last years, we have invested significantly in autonomy. This has yielded us 2 fantastic offers that we have today, one, which was launched as late as last year. There's SC60 we have, but we also have SC50. These platforms that we have, we will, of course, continue to improve, continue to develop as we go forward. But one thing that we also want to start working with here is what we call integrate autonomous. If you think about autonomous as a container of things, it contains so many different technologies. It's data-driven technology. It's sensor driven. You have many different variations of sensors and connectivity and so on and so forth. So what we want to do here is actually pulling some of these elements into what we call our normal portfolio because some examples given here, right, this could be connectivity. That's for sure, part of autonomy, but it can also be part of other products. Intelligence, in general, I make a very generic statement here with intelligence. That is also something we can pull into our normal products and selectively increase the value proposition, all to drive more productivity for our customers. That's what we mean when we talk about integrating autonomy. Of course, we will continue to focus on autonomy, absolutely very important, but also pulling in a little bit more into our normal portfolio here. This will, of course, generate new services like rental, data portal, digital risk and task management going forward. And also to the bottom right here, we will develop new generations of autonomy also in the future. Basically, when we develop now the module architectures, we will already in those creation of those architecture build in autonomy. So autonomy becomes a part of a product and not necessarily like maybe as perceived today like an add-on in the afterthought. Okay. Coming back to sustainability. Camilla already explained our very ambitious targets we have set up here. And I just want to restate it again. In all our new development our new products, we have put a target of reducing CO2 emissions with 25%. That's a very strong very high ambition. And this is also coming back to why are we investing so much now in technology and software in our R&D investments is actually to fuel this much, much more going forward because this is a long-term thing. We're talking about 2030 here, but we need to start now. We need to start now. So what are we starting with? Of course, we're starting with CO2. We will look into motors, motor pump units, which is very fundamental in consuming energy as well as looking into where do we have losses? Like we, in Nilfisk, we're transporting a lot of water, we're transporting a lot of air. Where do we have the losses, how can we reduce losses? And then also a little bit looking back to the previous point with new smart technologies, we can also look into how our products are used and how can we optimize that usage going forward. So those would be some short-term examples that we already now will start looking into, but the target is 25%. I want to leave you with these 3 statements here, what is different. So before or in the last years, we have been very autonomy dominated. We have invested a lot of time, a lot of money into development of autonomy. What we want to do is balance that a little bit and create what we call more autonomous integrated, integrating the different components, creating new value propositions for our customers to drive productivity. Secondly, going away from catching up on sustainability and working with it a little bit on the side, more to a real leadership when it comes to sustainability, targeted investments, targeted people and really focused. And finally, tying back to the architecture story going away from thinking product by product, one-off by one-off, we think more in a scalable architecture that we can encompass more things. So I will leave you with that, and then I will hand over to Torsten, who will talk about service. Thank you.

Thank you very much, Pierre. Now I have the pleasure to talk to you about another key pillar of our business plan '26, develop service-as-a-business. So for this presentation, I took jacket off because we're talking about really hands on this. And so something that I'm personally very, very excited about. Let me briefly guide you, orient you where we are in a map of our business plan '26. We just touched upon sustainability commitment by Camilla. We touched upon innovation and lead with sustainable products by Pierre. And I'm talking about now service-as-a-business, which is one of the 3 key strategic priorities. And as a value proposition, life cycle services, the ultimate customer experience, a key element of our value proposition. So that's the topic I'm going to address now. Service for Nilfisk is 30% of the revenue already. It's quite a large chunk of our business. And this comes to us as a reactive repair activity. So our customers use the equipment, something breaks or something wears off and we replace it or we fix it. That's an important activity. We do this well. That gives us 30% of our revenue. We want to go beyond that. We want to develop proactively a solution by packaging services around the product offer and with this provide a comprehensive solution. So moving from reactive to solution selling and life cycle services. So with those service value proposition, what is the advantage will come along? We'll have regular noncyclical sales. You have a service contract, it delivers month in, month out, non-cyclically. We grow the business steadily with high margins that are linked to the service business. If the customer is happy with the service over the life of the operation of the equipment, he will stay loyal to us more easily than when he just sees us every other year when we sell new equipment. So customer retention and loyalty is a key side benefit of service-as-a-business drive. It will give also entry into new business models that we cannot enter when we just ship equipment. And it also allows us to leverage digital technology when you're in with the company, with a customer in service, you can monetize data and technology. So that's why we put in our business plan from the EUR 295 million revenue we had in service last year, the ambition to grow by EUR 80 million to EUR 120 million. This is the fastest-growing single activity we put in our business plan. Where is the opportunity? Just let me share with you some of our fact base that speaks for itself, right? So First, where are we coming from? We are coming from service is not a priority for the company. It's not a good thing. Having service is not a priority, how do you see a service was not a priority? You see this across this page. Service revenue in the last number of years up to 2020 was declining, very unusual, right? So declining revenue. We stepped up -- we started to step up on '21. We have a significant journey ahead with growth of EUR 80 million to EUR 100 million incremental revenue in the years ahead. Then you look at the table below, which is one example of a data point. So we look like the parts service, you look across the countries and how -- what's the proportion of revenue of parts in any of the countries. Okay, it's just ABCD country. We look at all our countries. It turns out that revenue proportion is very different for no reason, the exact same product in a country, one country, the neighboring country, completely different proportion of revenue. because it's left to the device of a local leader, he pushed that business. He doesn't push the business. It wasn't a company-wide initiative. Then we analyze some key metrics, very simple, straightforward key metrics of a service business. How much of our new equipment is attached with a service contract? It turns out to be extremely low. Surprisingly low, this is capital goods, customers operate over years, and we don't attach service contract to it. We just wait until a customer calls or something breaks, very, very unusual. Any other business in this industry benchmark is much higher than this. You look neighboring businesses. We have a good compare with the forklift truck business with a similar, you have a 70% to 80% contract attachment rate. So we are coming from very low industry benchmark is around 40% maybe. So very low means far below 40%. And benchmark industries are 70% to 80%. So we target as a business spend 26% to go to contract attachment rate of 40%. That's half of the way for what we finally long term want to get to. It's clearly tangible when we start focusing on this. Parts revenue share. I mentioned this huge variation country by country. We just lift the average by a moderate 2 points. It drives growth and among the most profitable growth, which is the parts business. Field service, you track productivity parameters and profitability parameters of field service. It turns out there's a lot of heterogeneity across the countries. And you benchmark with other industries also here, it jumps at you how significant the profitability improvement opportunity is of field service. So this is a few data points that let us make confident to conclude we're sitting on a gold mine here, a neglected opportunity playing service-as-a-business. And when we do this better, it will move the revenue proportion from currently 30% to the intended 35% by the year '26. So let me just a bit conceptually about simple and straightforward take you in our customers because we want to be customer focused on we need to understand how our customers look at their business. We want to create value for their business. So who is our customers? Our customers are people that do a professional cleaning activity. Sometimes it's an outsourced service as a facility service provider, sometimes as an in-house but still service to a wider business. So those are service businesses. When you look at the professional cleaning activity of our customers and you look at their P&L, 80% -- 75% to 85%, around 80% of their cost is labor. That's a vast, vast majority of what determines their profitability. Then you have a small proportion, which is around 5% plus/minus, which is our equipment. So in the P&L of our customers, our equipment is a small proportion. And then you have the residual around 15%, which is other materials or equipment and the remaining profit margin. So what's the issue with that for our customers? Our customers have a huge cost proportion in labor, a professional cleaning company like ISS or others have significant attrition that's not -- that's inherent in this industry, not to any particular of those companies. It's inherent, a lot of attrition. Our equipment is operated over years. You have people rotations, so attrition. You have increasing labor shortage and the entire profitability equation of a professional cleaning customer, our customer is how well they manage labor productivity. And then many of our customers have a high variation between some jobs and some sites and some people have a higher productivity and others have lower, and it's about lifting the average up. right? So -- and a customer typically operates a rate of fleet and a multitude of site. So when a customer looks -- our customers look at their portfolio of activity, they have contracts that are profitable, more or less, depending very much as a functional outcome of their productivity. And margins are very, very thin in this field. So making minor changes in productivity has a huge impact whether our customers are profitable or not. We have a role to play here by offering life cycle services, a massive role that determines whether a company, our customers have a better chance to make money or not. So what do we mean we like our life cycle services. We're not stopping delivering equipment at the front door, even though it's great equipment, okay? But we're not stopping there. We're taking the equipment and say, customer this equipment comes with a contract. It's normal. It's part of our delivery proposition, our value proposition. It comes with a contract because it gives you a longer asset life, it gives the security. It's just natural. And so far, our sales people have not been -- didn't have that on the radar. Now we have incentivized them, sell this along. It comes with our product, natural, okay? So we sell a contract. Once you have a contract, but only if you have recurring revenue from the contract, you are in the door of the operations with the customer. You're not shipping a product front door, you're out, you are into the door, into the building, into the operation. And the very first thing you do, you secure that our equipment has uptime. It works all the time. You predict if it risks to break, you've preventive, predictive maintenance, you have it up all the time. But the next thing is the equipment needs to be used. Sometimes nothing is wrong with the equipment, it's not broken, but the sales -- the cleaning person is not using it, it's too cumbersome to operate, they just do things manually, but this sucks productivity. So we need to make sure that the equipment is there, the customers invested in is used because this lifts productivity for our customers. So one thing is uptime. The other thing is utilization. So we can support our customers with this. Connectivity is a huge tool, helping us and our customers to get the feedback to get those topics up. And there is fleet management. It's not a single machine. It's the entire fleet the customer operates and typically they operate fleet across different product categories, Floorcare, vacuum cleaners, so half those operate and optimize as a fleet. And then you are in the customer process, then you are into what determines where you are in the average of the productivity. And if our customers make more money or not with the contract. So that is the huge value of life cycle services that we want to embark on. So we think it's massively worth. For us as a business, the revenue growth potential, the profitability growth potential, but also for value creation for our customers. So we mapped down our scorecards, how we measure track implementation, growth revenue, grow revenue measures and improve margin measures, of course, contract attachment rates, parts penetration, equipment renewal -- contract renewal rates. When you're in the elevator business, you are in the high 90s. We haven't even started to track this in the past because also the portfolio of contracts was very small. Now this will be growing. So we track renewal rates. And overall service business growth will be faster than new equipment growth. And then that leave us for profitability in service, field service productivity, contract profitability, parts pricing and the hourly rate that we charge. So a huge opportunity and we have set out clear targets value driver as part of business plan '26. And the key implementation streams are straightforward: commercial activation. We have a global sales presence, sales team. They haven't thought about selling contracts. Now they're all up to it. They're incentivized. They're raising around contract selling. It's natural. You sell the equipment customer, any problem. The contract goes along. No, it's not yet, just pass it on along. It's great. So now the sales team is ready, something we just started. Capability building. Of course, this is a new mindset for us as a company. We need to build those capabilities. We hire critical resource. People have done this elsewhere. We train the people that we have so that everyone understands and embraces what we are up to here. Then field service profitability program. There are tools we have not utilized. For example, how we dispatch our service technicians. The technologies that many companies use. I got used to when I worked elsewhere in commercial refrigeration or forklift trucks or on the elevator business, there's much more sophisticated tools to make use of every single precious hour of service technician. We're not even using any of those technologies that are well proven in other industries. So we start implementing this. Parts business development. We're not selling parts today. Something breaks, customer calls us. It's not active commercial effort. So we want to put product management into this. Somebody has systematically thinks about here's parts, the customer needs. We proactively sell. We run a campaign, replace something before it breaks. It tends lifetime for your equipment. It doesn't break up time is up, right? So all for dealers where dealers might buy the parts from us or from somewhere else, no, make sure they buy from us, proprietary parts from us, but this requires commercial activity. Parts like in any other business is the most profitable part of our business. You promote this, you have a dual effect on top line and massive on bottom line. Of course, if you sell parts, you need to have the supply chain for it. And the supply chain for parts is different from a machine. A part if it breaks, you need to have it next morning, right? So we need to tune our supply chain to cater for the success criteria of this business. So this is a mind sheet from a reactive repair to service-as-a-business, life cycle services, value creation for our customers. However, we are no strangers to this kind of business. I joined this company last year. I have been in other industries where the journey that Nilfisk has ahead of itself, they went through 10, 15 years ago. This is commercial refrigeration I have been in. This is forklift truck business or elevator business. That gave me the opportunity to learn valuable lessons, be familiar with the tools, the metrics, the way of working in more service-led businesses. We'll be announcing today the arrival of our new colleague in the NLT Executive Vice President for Service as a Business, Global Service Leader Anupam Bhargava. Anupam joins us in the next few weeks coming from Grundfos, where he led the last 4, 5 years, the industrial segment, the Industrial division, with very, very solid service experience. From Grundfos but also a good proportion of his career within Pratt & Whitney a United Technologies company in jet engines were innovated new ways of service and maintenance for jet engines companies. There is no more sophisticated service business than jet engines. So we know what we're talking about. We have done this before, and we have great opportunity to develop service-as-a-business in Nilfisk. This concludes the service section, and we have a final round of Q&A.

Thank you, Torsten. And yes, a final round of Q&A. So if you have a few more questions, please submit them. For now, we have a question to you, Torsten, about the possibility, and that's from Casper Blom from Danske. Can you talk about the possibility of renting out equipment instead of classic sales of machines and how this may also allow for a more integrated service offering? How much is rented out today? And what is the potential?

No, excellent question. So let me start with the last part of the question, how much is rented today. Our rental business today is very small. We are working on concepts to be available to make this a bigger part of our business. If you look like the business I had deeper insights from our past companies into the forklift truck business, the forklift truck business has more than 50% of its fleet rented in some countries, even 70%, 80%, 90%. So that's a value proposition customers do appreciate we are in an early stage of developing that value proposition, but more is to come. So today, rental is small, it will steadily increase to much more significance in the future. And it goes without saying every equipment that's rented goes mandatory with a service contract. And then it completely changed the revenue flow, right? So -- and then it also -- it changes the entire psychology of a business. You're not selling new equipment and you're coming back after 3 years. You're selling your equipment or contract and being rented and then you extend the rent, you replace the equipment, maybe even you replace the equipment while the contract is still ongoing. It's a completely different mindset. But this is a long-term play. And it's not something that just drops on our plate in 5 years it's something we can steadily evolve into and every step on the way is valuable for us as a business and for our customers.

Then we have a question from [ Claus Almer ], Nordea, who will you take the service market share from?

Yes. That is a good -- excellent question, right? And I had this -- we had this topic in all my former companies that were very, very much service heavy, right? So you go forklift truck or the elevator business or commercial refrigeration, can you find a service technician next door just repairing a thing? Maybe yes, and maybe the hourly cost is cheaper, but we are talking about a completely different value proposition here. And we are competing with other people that are doing a repair job. And when we're doing a repair job only, it's much more difficult to compete. But when you do a life cycle service value proposition, you can do this as a larger corporate. This is a completely different value proposition. But I'll give you an example, we are global, yes. And of course, service by definition is more local, regional, so let's say, Europe. Remote monitoring, it's something we don't have today. We're going to implement. So our equipment, Pierre said this, will more and more be connected. So when you have a connected equipment, you convey data into a cloud and then you have -- then you do remote monitoring, you collect the data, you look what to do with the data. Just that infrastructure, we can put this once in Europe, one European remote monitoring center and then leveraged infrastructure across all our geography. A small mom-and-pop repairs can never do that. they can maybe -- they can be the cheaper repair. But for a life cycle service value proposition, they will not be able to compete. So we'll compete with the other big institutional competitors for this value proposition. The service market today is super fragmented. You have thousands and thousands of small mom-and-pop stores. We have our dealers. They're doing this kind of with some of the stuff without being properly organized for this. So we partner with our dealers. Sometimes we take over when they're less organized, sometimes they take over when they're well organized. So this is a huge pool of market where we can refer to. So growth opportunities are unlimited.

And the service seems to be the topic. We have a third question here around service from Kristian Tornoe, SEB, how will you service contracts along new equipment when selling through dealers?

Yes. And this is obviously valid. And you heard Steen and Jamie talking about our proportion of direct, indirect. Our direct proportion is increasing. Obviously, this helps our service proposition. But the dealer partnerships remain crucially important. And very often, this serves us very well. Jamie talked about remote territories in the U.S. where it would not make economic sense for us to recruit our own service technicians. So here, we partner very well with an established distributor in a service partnerships. We would agree on the ways of working. We will share technology. So for example, remote monitoring everything that the distributor does for us, that equipment is also linked to our remote monitoring center, so they can benefit from our infrastructure investment. So it will be in partnership with dealers. In some of the geographies, we'll build our own infrastructure, right? And many of our dealers, for them, they do service as a repair job, it's cumbersome. Customers require it, so the dealers have to invest and very often, they're happy to offload this to us. And then we have commercial arrangements if they come up with a contract and just offload the rest of the contract fulfillment to us, they will have a commission. So it's not a kind of contradiction, it can very well play together. That's the way we intend doing it.

I think this -- unless there is a final question, this will conclude the Q&A session. And then I will hand over to you, Torsten, for a closing remark.

All right. So I need to have some water to conclude. We are approaching the end of our session. I'm grateful for everyone that joined that session with us live in the room and everyone in the webcast. It was a pleasure and an honor for us, me, Reinhard, all my colleagues to share the details of our Business Plan '26 with you. So thank you very much for joining us in this event. I mentioned this at the beginning, and the same is true for Reinhard. When we looked at this, a bit more than a year ago, we were invited to have a look at Nilfisk and join the executive team of this company. So we looked at that and made our due diligence about it, try to develop an understanding from the outside about the potential and why the potential did not lead to the performance that shareholder had expected. So we look into this from the outside and through the discussions in the recruiting process, and we saw potential. And we saw a unique opportunity that doesn't come across often in a professional career to build the global market leader in a category. The industry is attractive. It's growing. There are some players, but we can do a better job over time. So we have the opportunity to develop Nilfisk and the recognized global market leader in this industry. That's what we appreciated as an opportunity looking from the outside. We left big jobs behind, Reinhard and myself, and everyone who joined us in between on the journey because we believe this is our thing now. This is a finalization of our professional careers. This is what the opportunity is and we can help a company to unlock its full potential. Coming in, we make the strategic review we talked about at the beginning. The things we have seen from the outside got substantiated in deep data analysis. We understood why things went wrong. We understood there are levers for value creation. And we talked about those. We talked about service-as-a-business. We talked about growth in the U.S. We talked about leading with sustainable products. We talked about the optimization opportunities in Europe and with the supply chain. This is all backed up by data. So what we saw looking from the outside coming in was confirmed. We have translated this into a Business Plan '26, which is focused on long-term sustainable growth, and what is necessary to enable that growth. So this is what we have shared with you today. So we are fundamentally confident that what we saw initially has proven to exist in reality. The second key point I want to make, this is a nuance, but a fundamental difference. With this business plan, we are building on existing strength. This is not a bet on we reinvent the industry. This is technology disruption. Yes, we know better. It's nothing of that. It is too on-letting to the basics of this industry. What makes this industry work well, it's a good industry. We need to play to the rules of that industry, and those rules play to our strength that was made that -- those strengths made the company among the global leaders, which it is already have a wide offering of products have good quality, have excellent customer relationships and has service that help the customer over the lifetime. Those are the basics of this business. So we build on those basics. And every step on the way where we're getting better and better and better, creates value for us and for our customers. It's not a big bet on the disruption. It's a great industry to be in. It's growing. It's profitable for most of the players in the industry, and we can do better building on our strength. The final thing, which we spend a lot of time on it's new ways of working. We know exactly well that a strategy and a plan is the easy part of it. Not saying it's easy, but in the journey is the easier part of it. Execution is everything. And without execution, the best strategy is worth nothing. And that's the big difference here. This is about new ways of working. This is of methodology. We don't need to invent that, [indiscernible] production system, our business system, lean, tools, any kind of tools, I was in UTC, ACE, Achieving Competitive Excellence. Those are proven tools they work. We have applied them myself and many of our colleagues. They work. This is proven execution tool. Digital. You are guided by information. You need to know the information, easy without weeks of queries at your fingertips in real time, then you can make decisions. you do something, you see quickly, it was the right step or the wrong step, it didn't quite work. It didn't perform. So you course correct, you learn. This is to Reinhard's point, continues learning. You need data, real time, effortless. So building on this. And then the people and the culture we talked about and Jacob rightly underlined. If the culture is not there, the strategy will not work. So we are building systematically the culture. So there's ways of working to secure successful implementation is the fundament of Business Plan '26. I'm 30 years into business. I was lucky enough, by luck or by hard work to make a reasonable career in my professional life. This career was built on nothing else than execution and deliver to promise. That's it. It's not strategizing or visionizing, I like that. But my career, like most of our careers for people in the room here are built on, you say something, you do it. We have done things that we have outlined here before. We have taken companies that had huge potential to unlock that potential and to deliver much better results. I have no hesitation to be absolutely confident we see the same here. With Reinhard, all my colleagues at NLT, our team that help us to formulate this plan. And as we started to share in the last few weeks, I'm excited about the journey ahead. The people will carry this spend over the finish line. And we are super confident that what worked well in other places, we bring the tools, we bring the ways of working, will also work very well here. And every step on the journey is a 5-year plan, but every step on the journey creates value. It's not that in 5 years, "puff" all of a sudden, everything drops. We have the big invention and then the game-changing disruption. Every step on the way. We have been growing massively last year. We continue growing this year. every step on the way, every year in this journey will create value. So we are confident we are pleased. We are happy to be here and we are happy to have you as part of the interested audience following how we're doing. We invite you to stay tuned. We give you regular progress update on how we're doing, and we're looking forward to bright future ahead. Thank you very much for your interest.