Good morning and welcome to Sulzer's first half conference call. Today with me is our CEO, Greg Poux-Guillaume, and our CFO, Jill Lee. For this call, we have prepared a presentation, which you can find on our homepage. As always, I want to draw your attention on the disclaimer on slide number 2. Please read it through carefully. Having said that, I hand now over to Greg for the presentation. Thereafter, you have the opportunity to ask questions. Greg, please. Thank you, Christoph. Good morning, everyone. Jill and I are happy to be with you today. Let's go straight into the presentation. Starting on page four. In Q2, our orders were up sequentially, also year-over-year. This was supported by significant growth in our Chemtech business, in our Applicator Systems division, as well as strong momentum in Pumps Equipment's water and industry segments. This commercial momentum and a strong opening backlog allowed us to grow our sales by 6% organic in first half. The higher sales volume, strong execution, and savings from our structural cost actions boosted our operational profitability by 250 basis points to 10%, the highest we have ever been in first half. Our Free Cash Flow also hit a new record for first half, tripling from the previous year's period to CHF 117 million. In February, we closed the acquisition of Nordic Water, strengthening our position in the water treatment market. Today, we offer the broadest portfolio of equipment for wastewater treatment, a market which is expected to grow steadily 4%-6% a year. In May, we announced our intention to spin off our Applicator Systems division, creating an independent company called Medmix. Subject to shareholder approval at an extraordinary general meeting to be held in September, Medmix will be listed on the SIX Swiss Exchange this autumn. The split will allow each business to fully express its potential for Medmix, increasingly in healthcare, but backed by strong positions in industry, and for Sulzer, firmly steeped in flow control, with a portfolio evolving towards sustainable applications. On page five, we see how Sulzer splits out in first half by business and by region. We saw positive trends in all divisions. In services, our momentum continued trending up quarter after quarter, and sales and profitability were already above last year's level. Pumps did well commercially in water and in industry, with water now our largest pump segment. Together, pumps and services make up about 2/3 of our volumes and about 60% of our profits. Chemtech performed well in Q2 on all indicators. We're particularly pleased with the strong trend in the division's renewables business. Last but not least, Applicator Systems, the division that will soon be spun off under the name Medmix, saw a particularly strong recovery in its dental and industry segments and signed a first customer for its newly launched D-Flex platform, a U.S. biotech. That's an important milestone for our new platform. As always, although it's not shown on the slide, aftermarket activities account for about half of Sulzer. Moving to page six. In Pumps Equipment, orders in water were up 7% organic in first half, and in industry, we were up 6%. Including Nordic Water, which contributed CHF 37 million, water grew by 25%. Energy orders settled at around half of their pre-pandemic levels on a combination of soft markets and Sulzer selectivity. We've adjusted our capacity and are focused on preserving backlog quality. Sales were up 4% organic, also driven by water and industry. Our operational profitability increased from 3.1% - 5% on higher volumes, good execution, a favorable mix, and faster than anticipated realization of savings from the structural cost actions we announced in Q2 last year. We closed the Nordic Water acquisition, as I said, at the beginning of February, and with that strengthened our position in the wastewater treatment market. Once again, water is 40% of our orders in this division in first half so i t's really a very different Sulzer pumps business than what you've been used to in the past. Very much water-oriented these days, water and industry. Moving to page seven. Our industrial pump segments won a major project for a new wood-based bioproduct mill in Finland. We talked a lot about water, but our industrial segment is very exciting, and it's very exciting in part because it has a strong leadership position in pulp and paper. As you know, the world is seeing the development of a fiber-based economy, where increasingly plastics, to name just one example, are being replaced by fiber-based products. Sulzer has an important role to play in this. Metsä Fibre is building the largest wood-based bioproduct mill in the Northern Hemisphere with a production capacity of 1.5 million tons annually of softwood and hardwood pulp. The plant is expected to be operational in 2023 and will be a global leader in environmental energy and material efficiency. It'll operate completely without fossil fuels. Many people call these plants biorefineries as they generate the feedstock of the fiber-based economy. As I said, Sulzer is at the heart of this. For this plant, we signed a framework agreement to supply more than 400 pumps and agitators and mixers. We were selected not only because we're familiar with our long-term customers' processes and needs, but also because we offered the most technically advanced solutions, fulfilling our customers' targets on material, energy, and environment. Let's now turn to Rotating Equipment Services on page eight. In RES, orders continued the uptrend seen in Q1, i n Q1, they were up 10% sequentially. In Q2, they were up again 7% sequentially. Also 3% compared to Q2 of last year, which you may remember that Q1 and Q2 last year in service for us were really high. Q1 was the highest ever, I think Q 2 was also very strong. It's a high comparison base, but we're still 3% higher in Q2 than we were last year. We're still down 6% organically for first half t hat's really a factor of big orders in Q1 2020. As you know, the second half compare is much easier. The second half compare 2020 is much easier, and we're well on track to be up by our announced 2% - 3% for the year in service. Sales increased in first half by 1% a ll regions were positive. A consistent picture here. There are still temporary headwinds in many Asian countries, for example. It remains complicated to move service teams around the country and to have access to customer sites. We're heading in the right direction. Operational profitability increased to 13.4% from 12.1% as the division showed strict cost discipline and good execution. This was achieved despite having less high-margin retrofits. The retrofits, they depend on intense customer interactions, and those interactions have yet to recover because it's hard to get people around even a virtual table to make decisions on these complex jobs. They're high margin. They're a bit lagging currently, but they're picking up, and this bodes well for margin improvement for the rest of the year and onwards. Going to page nine, we give you an example for RES of an interesting project that illustrates the fact that retrofits have important environmental positive impacts. We won in the Q2, a large order in Australia to upgrade a shore-to-ship solution for Sydney Harbor. The project includes the upgrade of two rotating frequency converters from 3 MVA to 5 MV A, and it lasts until the middle of 2022. The rotating frequency converters are part of the harbor's shore-to-ship electricity supply system, converting 50 hertz electricity from the onshore grid to 60 hertz to power the ships while in the harbor and t his avoids having the ships use their diesel generators. If you do the math, which the customer did, of what the environmental impact of this retrofit is, we're actually saving more than 5,000 tons of CO2 annually. These things, they look minor, but they're actually significant. It's another way in which Sulzer contributes to improving the environment. Moving to page 10, Chemtech. Chemtech performed well on all metrics. Orders are up almost 13%. One, three. 13%. Sales are up almost 8%, and profitability is up 70 basis points in first half. Our renewable segment is doing well, delivering first half 2021 orders close to those achieved for the full year 2020. Renewables encompasses, as you know, sustainable applications like biopolymers, recycling processes for plastic and fibers or biofuels. We first split that segment out in our full-year 2020 presentation and said that Chemtech generated close to CHF 50 million in renewables in 2020. In the first half of 2021, we achieved CHF 44 million. Good momentum. We're also seeing a continuing momentum in chemicals in Asia, with China remaining dynamic and other Asian countries joining in. We also saw a rebound in field services as travel started to normalize and outages resumed in the U.S. Page 11, we give you an illustration of what our renewable segment is about in Chemtech. Sometimes it's implementing our proprietary end-to-end processes, and sometimes it is other innovative process developers that seek us out to help them clear a technical hurdle that they're facing t he example on this page is the latter. We partnered with Blue Planet, a U.S. company which is developing a carbon capture, utilization and storage system that captures CO2 from a variety of emission sources. They include power, steel, cement, refining, and other applications for CO2 emitting industries. The system mineralizes the CO2 to form carbonate rocks that can be used instead of natural limestone for concrete production. It's a big deal for the cement manufacturers. Limestone, as you may know, is with 70%-90% the main component of concrete, and therefore it's the most used building material worldwide. Chemtech is developing for this application an efficient carbon capture unit that will be a key enabler to Blue Planet's process. This will be installed in Blue Planet's pilot plant, which is being constructed currently in California. Moving to page 12. We'll talk about Applicator Systems, soon to be known as Medmix. Applicator Systems saw a pronounced upswing in the first half of the year. Orders rose by 53% organic year-on-year d ental end industry performed particularly well. As the demand recovered. Beauty is also recovering, a little bit slower though, as continued lockdowns, less travel, and the masks that we all have to wear are continuing to impact makeup sales in the first half of the year. Our 2020 acquisition of Haselmeier, a leading drug delivery device manufacturer, is off to a strong start. As I said, Haselmeier won its first customer for its newly launched D-Flex platform. It's an injector pen platform for which we have high hopes, and we're very excited and t hat excitement is shared by a U.S. biotech company that chose us for their product and gave us a multimillion-dollar order in the first half of the year. The D-Flex platform will be one of our engines for growth in drug delivery devices for the coming years. The strong volume recovery, together with a favorable mix, had a very positive impact on margin, which increased from 11.8% - 19.3%, close to pre-pandemic levels. As I said, we plan to spin off our Applicator Systems division, creating an independent company called Medmix. Subject to shareholder approval at an EGM tentatively planned for mid-September, Medmix will be listed on the SIX Swiss Exchange this autumn. We believe that Medmix value creation story is just beginning, and the split will allow current Sulzer shareholders to continue the adventure. On page 13, we show you that Medmix, like Sulzer, is increasingly driven by sustainability. We talked in the past about our patented ecopaCC collapsible cartridge. In earlier presentations, it won the World's Most Prestigious Packaging Innovation Award in the resource efficiency category. Now it has won two new customers, both of them in the Chinese construction market. They will use this system for tile grout. The advantage of the system is that it can be transported in a collapsed state, then filled, o nce used, it can be collapsed again. This minimizes cost, and it reduces waste by 80%. Chinese construction companies get this, and they are willing to pay for this, shattering another cultural stereotype. With this, I hand over to Jill Lee for the financial presentation. Jill Lee? Well, thank you, Greg, and good morning, everyone. Let me highlight the most important numbers on slide 15. While orders in first half were still down year-over-year by 3% organic, they were up growing again by 7% year-over-year in Q2 and were also up 8% sequentially, showing continued good momentum from the Q1. Our order intake gross margin expanded significantly, mainly driven by a better mix, but also by our continued selectivity in PE energy. Order backlog did not change much in a year-over-year comparison, but has increased once again since the end of 2020 as orders continue to exceed strongly growing sales. Sales were up 9% FX adjusted and 6% organic, supported by a strong order backlog at the beginning of the year and the continued market recovery. Higher sales, a favorable mix, and earlier than anticipated savings from structural cost actions that we activated last year lifted operational profitability or operational EBITDA divided by sales by 250 basis points from 7.5% in first half 2020 to 10% in this half year. Even more pronounced was the uplift in EBITDA margin. In addition to the uptick in operational profitability, we recorded only few non-operational expenses this year. Free Cash Flow hit a new high for first half as it tripled from the previous year's figure. Now let us move to slide 16, and I will show you the operational profit bridge. Here you see the bridge in more detail for Sulzer excluding APS and APS as a separate column. For Sulzer excluding APS, 4% organic sales growth led to a positive volume impact. The reduced energy business had a minor impact on mix, a positive one. The savings from structural cost actions were partially offset by the reversal of last year's OpEx squeeze. If you recall, we had around CHF 60 million of OpEx squeeze effect in 2020, and we are expecting around CHF 40 million of this to reverse in 2021. Impact from the hard stop on travel, accelerated leave days consumption, and hiring freeze last year will partially reverse in this year. APS, shown here with CHF 24 million, is the delta of what they contributed this year and have contributed last year. The split would reveal pretty much a similar picture than the one shown on this slide. We have positive volumes from the rebound, better mix from higher denser and acquisition effects from Haselmeier, and also some reversal from last year's OpEx squeeze. Going down from operational profit to EBITDA, there's not much to highlight because it's pretty straightforward. Amortization has increased by CHF 4 million as we have acquired Haselmeier and Nordic Water. The non-operational items are almost negligible in first half 2021. While you might remember that they had a massive negative effect of CHF 53 million in first half 2020 from our structural actions. Further going down the P&L, as you can see on slide 18, there's not much to report as everything has normalized. Maybe noteworthy, the effective tax rate is again at normal levels as no large restructuring charges have been taken in this year where we don't have the corresponding tax impact. I'm thrilled in particular to present this slide 19 o ver the last couple of years, we have put in a lot of effort into managing our net working capital. As the chart shows, these efforts have paid off. When I took over in April 2018, Sulzer used to have an extreme seasonality in its cash flows, being negative in first half and very strong in second half. While cash flow still has and still will have some certain seasonality due to certain payments being made in the first half of the year, it is less pronounced today. In first half, we generated CHF 117 million of Free Cash Flow, amounting to 6.8% of our sales, backed up by the good profit conversion as well as well-managed working capital. On to the balance sheet on slide 20. Our balance sheet remains solid. Our net debt stood end of June at CHF 557 million, resulting in a net debt to EBITDA ratio of 1.3 x, unchanged from first half last year. As such, our balance sheet continues to be well-placed to make selective small to mid-size bolt-on acquisitions. And with that, let me hand it back to Greg. Thanks, Jill. As you've seen, the positive trend in order intake continued in Q2, with all divisions again seeing sequential growth. While Q3 is likely to be seasonally lower, as it usually is in our business, we expect a strong improvement compared to the previous year, driven by continued growth in Chemtech, in water and industry in pumps, driven by a re-acceleration of Rotating Equipment Services and the ongoing rebound in Applicator Systems. We also expect a gradual market recovery in energy in Pumps Equipment, we do not anticipate much volume boost for Sulzer as we will remain selective. We confirm on page 22 the improved guidance from our Capital Markets Day in June. For the full year 2021, we expect orders to increase by 4%-6%, sales by 8%-10%, and to reach an operational profitability of 10%-10.5%, a range of 10%-10.5%. Without Medmix, Sulzer expects 2021 orders to be up by 2%-3%. Keep in mind, by the way, that without Medmix, Sulzer's orders were only down 1% in 2020. Sulzer, the flow control activities of Sulzer, are actually highly resilient. Didn't drop by much, only 1% last year, and they're going to be up 2%-3% this year. Once again, Sulzer without Medmix expects 2021 orders to be up 2%-3%, sales to be up 6%-8%, and we expect an operational profitability for Sulzer without Medmix at around 9%, above pre-pandemic levels. Medmix itself expects 2021 sales of around CHF 450 million and an adjusted EBITDA margin of 25%, which corresponds to 19% operational profitability. Allow me to remind you again what we will do in the fall, subject to shareholder approval. Let's move to page 24. Sulzer intends to spin off the Applicator Systems division under the name Medmix. The spin-off will technically take the form of a symmetrical split. Each Sulzer shareholder will get one Medmix share for each Sulzer share held. Sulzer will therefore not hold any residual stake in Medmix. In parallel to the split, there will be a capital increase of CHF 200 million- CHF 300 million with no preferential subscription rights. The intent of this capital increase is to fund growth initiatives to increase the free float of Medmix and to provide new healthcare-focused investors with an opportunity to invest in Medmix at the time of the listing. Medmix has leading positions for high-precision delivery devices in all its end markets, healthcare, industry, and beauty. Sulzer itself has made significant progress over the last few years in shifting its core flow control portfolio away from oil and gas towards more sustainable sectors like water, biopolymers, recycling, and so on. We have strong positions in chemicals and in industry and an unrivaled coverage of our customers' aftermarket needs, where we believe we are the largest and certainly the most technically advanced independent service provider. We expect the extraordinary shareholder meeting to take place in the second half of September, and we expect the listing to happen a few days later, towards the end of Q3 or early Q4, or said differently, last week of September to first week of October, give or take. Page 25 reminds you of the transaction rationale. Sulzer will be a pure play in flow control, a flow control specialist for water, for chemical, for industry, and for energy. With global coverage of its end markets, the company will continue to shift towards water and industrial applications and pumps and focus on its renewable technologies such as biopolymers and polymer recycling in Chemtech. Digital advances will build our unique offering and technical know-how to accelerate growth in our service segment d igital is a key differentiator in the service segment, both in terms of data analytics and in terms of additive manufacturing. Medmix itself will be a leader, and is a leader in innovative high-precision delivery devices with leading market positions in dental, pharma, adhesives, and beauty. In all segments, the company owns its own IP and is not a contract development manufacturer organization. We are an IP-intensive player. We do our own R&D and product development w e're not a CDMO. Medmix is active in markets that are driven by strong mega trends that allow for significant differentiation based on technology and that have high entry barriers and limited price fluctuation. Medmix is increasingly shifting towards high growth healthcare end markets. Healthcare is already roughly 40% of the business today. Page 26 is the snapshot of all of that, and the medium term, Medmix expects sales to grow at an average annual rate of around 8% and targets an EBITDA margin of around 30%. As the healthcare business is expected to grow faster, Medmix will move from being 40% healthcare to being more than 50% healthcare in the medium term. From a leverage perspective, Medmix will have a net debt to EBITDA ratio of 1-2 x EBITDA, really depending on the size of the capital increase, with all likelihood that the leverage number will be towards the lower end of the range, closer to 1 time net debt to EBITDA, really based on what we're seeing today. Final slide before we open up for question i will summarize what we tried to cover, Jill and I today. Our orders continued to trend up sequentially in Q2 in all divisions. They were also up year-over-year, except in pumps, where water and industry were up, but energy was divided by two, as we expected, once again. We expect Q3 to show the same trend, keeping in mind that, as I said, Q3 in our businesses is always a bit lower, because of seasonality. We expect that Q3 will be significantly higher than Q3 last year, and that Q4 is then expected to be stronger again. Following approval by Sulzer shareholders and an EGM, we'll spin off Applicator Systems as Medmix end of Q3, early Q4, via separate listing on the SIX Swiss Exchange. The capital increase in Medmix will happen concurrently. We believe that the split will empower both Sulzer and Medmix to accelerate their value creation and reach their full potential. On those words, let's open it up for questions. Operator? The first question comes from the line of Aurelio Calderon with Morgan Stanley. Please go ahead. Hi, good morning, Greg, Jill. Thanks for taking my questions. The first one is a little bit on your guidance for profitability and kind of the moving parts in the EBITDA bridge in the second half. This is obviously, there's historically been a close to 200 basis points seasonality in margins. Given the strong print in the first half, it's implying that that seasonality is not going to be that strong in margins because in the second half so i f you can help us with that and maybe on the EBITDA bridge. Obviously, I noticed that your savings are coming ahead of expectations i think you only had CHF 18 million from the CHF 17 million original program integration. It's come at CHF 23 million d o you think there's more to go? Could we see further upside there? All right, Aurelio. Jill, you want to take that one? Yeah, sure. I think, you have it right that we will continue to see positive effect as we expect our sales to grow, like we had in the first, probably slightly less, but if you kind of compare against our overall full year guidance, it's still a very strong high single-digit growth in the second half o n the back of that volume, we will see positive volume effect. Mix, I think, would stay around the same ballpark. We continue to see the savings from our structural cost savings l ast year, we told you around CHF 40 million. We've been faster in terms of taking the savings from that, so far it's CHF 23 million y ou can expect, therefore, the remainder to come in the second half year. I think, as I've mentioned earlier, some of the one-offs last year in terms of OpEx squeeze, that will reverse. Actually it's good too, because with the easing of travel, which we hope to see as well, that's actually a good sign w hen we see that, we'll see the growth actually even accelerating from that point of view. Overall, there'll be some reversal of that but w e intend to still maintain our prudence in terms of the discretionary spend a s mentioned, CHF 20 million of what we have communicated last year of the CHF 60 will stay intact. That's about it, t hat's where you can work out your bridge to come to our around 9% for the full year. Aurelio, follow-up question, or was that what you were looking for? No, that answered my question, but I do have a follow-up question. Go ahead. On the strength on the Chemtech sector, especially when you look at the order intake, it's been quite solid for quite some time now. I know that you are seeing big investments in Asia, but it's surprising that you also mentioned that. Aside from renewals, which you touched on, but what are the main drivers driving investment? Maybe not in China, but in Americas and EMEA, which you mentioned were recovering. I mentioned that the U.S. was recovering, particularly in terms of the service business of Chemtech, where the U.S. is one of the first countries that started opening up again in terms of travel. There was some pent-up demand in terms of outages, because outages involve having a lot of people on site, and customers were reluctant to do them last year. The U.S. currently is quite active from that perspective, and that's a positive sign. In terms of product and equipment sales, it's really Asia that's sort of driving the charge w e did well in all regions in the Q2. China has been strong for an extended period of time, and when we project ourselves and we see the level of tendering activity that we have and the projects that customers are flagging in China, we see that trend continuing. We also saw a pickup in some of the other Asian countries, which is a good thing, because we're very happy with the strength of China, but we also want to make sure that our business keeps a level of balance that allows us also to distribute the volume around in a way that makes us efficient. If you map out the order intake of the Chemtech business, it pretty much resembles the distribution of the chemical spending worldwide, chemical market worldwide. We're stronger than average w e are the market leader in China, and sometimes that gives the impression that we're unbalanced but a ctually, the reality is that if you break down Chemtech, you see that China is roughly, in Chemtech, of the same proportion as China in the chemical market worldwide. Quite healthy from that perspective, and the momentum that's continuing. Once again, Chemtech is mostly chemicals. It's more than 50% the chemical market. That's the driver that you have to look for as you try to understand where the business is going. Did that answer your question, Aurelio? Yes. That's super helpful and m aybe if I can squeeze one last question. Go ahead. I think you briefly touched on this. I think you used a nice chart showing the margins and the incoming orders in the Pumps Equipment business. Yep. How is the gross margin developing there? You mentioned that you're obviously being very selective in projects in energy. Yeah, that's a really good question, and it's a really fair question, too. The reason why we're flattish, we're essentially hovering at the bottom, at the trough for us in our energy business and pumps you know w e said that orders had been divided by two in the first half of the year. But first half orders 2020 were really high and t hese were record levels. Actually, the level that we had in first half this year was in line with the hypothesis that we took to re-dimension the business last year. From that perspective, we're not surprised, and we're in line. We positioned ourselves at that level because we felt that it was important to be able to continue to be selective. What I explained in the past and what we had on one of the slides in the Capital Markets Day presentation, is we said that in pumps for energy, it was essentially a mid-teens gross margin business. I think I said in the past, anywhere between around 14%, 15% gross margin for that business. If you look at the last significant oil downturn in 2015, 2016, the gross margin of that business bottomed in the mid to high single digits. We are at the bottom of where we think we will be right now, and we're maybe like 100 basis points off from where we were before the market started correcting. We're defending the gross margin in the backlog very successfully at this point in the tough markets. Our priority, you may have picked up on my cryptic comments about the fact that the market will pick up in energy, but we don't think this is gonna lead to much volume upswing for Sulzer in the second half of the year and i t really has everything to do with being able to protect that margin in the backlog. If we have to sacrifice some volume, we're willing to do it, because we've already taken capacity out so w e're not scrambling. Did that answer your question, Aurelio? Yes. That's super helpful t hank you very much. Thank you. The next question comes from the line of Patrick Rafaisz with UBS. Please go ahead. Good morning, everybody. I got one question on Sulzer and a couple of questions on Medmix, if that's okay. Fire away. Super. I'll start with a follow-up on just the previous question on the shape of the recovery in the energy segment. You've already given a lot of details, and you talked a bit about Q3. Would you anticipate at one point your orders to start pick up? I guess the current order volume is still below of your theoretical capacity, even after the re-dimensioning or d o you think this is now the level you want to continue to cruise at, even if the market continues to pick up into 2022 and maybe beyond? Very good question. We expect our orders in energy to start to pick up, I would say, in the first half of next year i think the market is showing signs of picking up before that b ut, what we're trying to do in terms of protecting the margin of the backlog will mean that we'll be selective, and therefore, that market upswing or progressive rebound is not going to be very visible in our numbers in the second half of the year w e expect- -to be roughly, for energy and pumps, at the same level, a bit higher than the first half of the year. Orders will pick up, though, in the first half of next year. Your question as to where we are in terms of how we are sized versus that assumption. We're sized roughly for that level and w hen I say roughly, factories these days for pumps are different animals than in the past. It's a lot of engineering, assembly, and testing and t herefore, a lot of your cost base is rendered variable by the fact that we buy machine components rather than to machine anything ourselves. We can absorb volume variations much better than we were able to in the past t his is what you're seeing in our numbers. If we stayed at the first half levels in the longer term, we would probably think about a few additional measures that w e are always thinking about things that we could do to optimize our footprint. At this point, it's not in the cards, because we think that we dimensioned ourselves pretty well. The timing of that progressive market rebound will validate that. Regardless of where it goes, whether it stays flat for a bit longer than what I said, or whether it picks up, as I believe, market-wise in the second half of the year, and for Sulzer in the first half of next year. I think regardless of what happens, we're in good shape w e've got the flexibility, the variability built in. That's great. Thanks. On Medmix or Applicator Systems, the first question would be with Haselmeier really doing well and you're seeing these D-Flex orders now. Can you update us from today's perspective where you stand with Haselmeier and how big of a contribution on sales and EBITDA or gross profit would you expect from Haselmeier this year? We're not giving guidance per segment for this year. Jill can remind you of the first half numbers. In terms of sales, they are around CHF 20 million in the first half, Haselmeier. Yeah. I think orders were CHF 25 million, something like that? Orders is around CHF 25 million. Yeah, orders around CHF 25 million, sales around CHF 20 million in the first half of the year. Haselmeier, we're not trying to avoid answering the question. We'll start reporting the business in more detail, as you know, once it's spun off and it's part of Medmix, w e're still sticking to the current reporting structure in Sulzer, w hat I would point out is drug delivery devices, it's a long game in the sense that if you take, for example, the U.S. biotech win that we've just booked in, I think it was in Q2, for D-Flex. Essentially it means that this company is selecting D-Flex as the applicator for its drug that they will run through the FDA approval process. It's already a multimillion-dollar order but t he commercial upswing of that is really when the product becomes fully commercially available. That's a couple of years out. Haselmeier, you really have to look at it more in terms of what are the products that we launch and what are the customers that are selecting us, because that's where the volume will come from and the margin will come from. The lag is more significant than what you have in other businesses, simply because anything that has to do with pharma has long approval processes. But once you're selected, you're in, because the drug and the delivery device are approved as one. Did I answer your question as well as I could at this point? Yeah. No, that's great. Thanks. Thank you. The last question from me will be, again, on Applicator Systems. You mentioned that example of ecopaCC- Yep -sustainable solutions. Can you give us a number or a share of how much of your sales and Applicator Systems are currently from these types of sustainable solutions? You also mentioned that the customers are, at least the ones in China you mentioned, are willing to pay a good price for this, right? Does that mean that if your sustainable solutions share of Applicator Systems increases that there will be a gross margin benefit for you as well? or whereas that's still very competitive and therefore we shouldn't assume that? Well, another good question. We don't break out sustainable solutions and Applicator Systems, because there's a moment where it really varies significantly from business to business t here's a moment where everything will be more sustainable but i 'll try to answer your question differently. I'll start by saying that the business, which is the most advanced in terms of sustainable solutions in Medmix, is actually the beauty business. Because, across all our businesses, we've been offering solutions with bioplastics or recycled plastics you know, a ll these products are made out of resin, essentially a form of plastic. We've been offering these more sustainable solutions, bio-based, and once again, recycled plastics, and w hat's interesting is that really at this point, the only place, the only segment in which we've had a significant take-up of that has been beauty. The reason why it's been in beauty is that the beauty companies, they're facing the customer and they're trying to differentiate and i f you're a beauty company, it's really part of your position and your marketing to say that your product is green or more sustainable. Therefore, in beauty, there's a lot of pull. We have customers that say, "We'll consider you, but we'll consider you only if you can provide these solutions." That's very favorable to us because we're the market leader from that perspective. If we take the other segments, it's been more of a push thing. If you take ecopaCC is a wonderful product. It's been commercial for two years, three years now. It's won all sorts of awards. The reality is that selling ecopaCC has been an uphill battle. It's been an uphill battle because it's a more sustainable product, 80% waste reduction, but it's also a more expensive product. And to your point, I'm not going to comment margin, but I think you can reach your own conclusions. As much as there's pull in the beauty market, there's a lot less pull in things like construction for these more sustainable products. The reason why we're pointing out the Chinese construction industry and these two wins is that, people often think that the pull for sustainability will come from Western countries. Interestingly enough, in this case, it really isn't- -The customers that are leading the charge for us are Chinese construction companies, which I'm not sure you would have expected it, but that probably would not have been my guess. It's different between pull and push. I think as this becomes more prevalent, we'll probably break it down in more detail for you guys to form a view. At this point, those are the explanations I can give you i hope that helps. It does. Many thanks, Greg. Thank you. The next question comes from the line of Arwen Hasnash with Frontobo. Please go ahead. Yes. Hello, everyone. I would have two questions, if I may. Please. The first one will be on China so, w e've been hearing from some industrial companies that they are seeing, especially for the second half year, kind of quite a steep slowdown in investment, especially in the infrastructure area. I would be curious to know your view on this matter. Well, I'll start with that. I'll take that despite the fact that Jill might be more culturally attuned to answer the question, but let me have a go anyway. China for us is, we're present in all our businesses in China. The part that's particularly dynamic is the Chemtech business, in China. In Chemtech, what we do is we have a look at the tendering volume, and we have a look at our pipeline and t he pipeline in Chemtech is interesting for China because the way the Chinese market works is that there's quite a few projects where you get a letter of intent and you're still negotiating the terms and conditions and t herefore, we don't book these projects. They're already won essentially, and it's only subject to our reaching agreement on things like payment terms and some guarantees that we give. That gives us quite good visibility, certainly, six months out, if not more in China. All those indicators are green, w e don't see a slowdown from that perspective. That's a Chemtech answer. I'm not aware of any slowdown in service in China i f anything, I think we're expecting a pickup w e had a slow-ish start of the year in Asia in RES. Slow-ish is an exaggeration w e grew, but we grew less than the other regions, and we think that's going to accelerate. I think I don't have any specific comments or a reason to believe there should be a slowdown in Pumps. As Chemtech is a big part of the answer anyway, hopefully, the details I gave you are helpful. Absolutely. Thank you. I'd add one thing, Arwen, where there's a really interesting question as to at which point the rest of the world starts building new chemical plants to balance the competitive forces at play, if I can put it that way C hina's been building big chemical plants, and these big chemical plants, they're very modern t hey're based on the newest and most efficient processes. They're large, which means that they have a scale advantage, which matters in a lot of chemical markets. I think there's going to be a moment where other countries start being nervous that their plants are maybe on the small and outdated side of things, and that where maybe the investment profile will rebalance, maybe a bit less in China, maybe a bit more elsewhere. We don't really see it at this point, but that could be a trend in the future. Yeah. If I may just chip in on more a general comment regarding China. I think it's also not unusual that when China has come up with a five-year plan that is very recent, the new five-year plan from 2021 onwards to 2025, it's usual that the country tends to activate the infrastructure rather more in the year after. I think if you look to the five-year plan, China continues to expect to improve, to expand their economy, but also to move into the sustainable type economy. I think what you see is just a phase of time when the new infrastructures are being activated so i t's not a general thing, t hat's just a kind of past experience I have. Arwen, I told you I should just let Jill answer questions t hat was interesting insights for you guys, I hope. Very helpful. Other question, Arwen? Thank you y eah, my second one would be around the FX impact that you expect. Originally it was - 2.2%, so whether that is still valid. Well, I think the way it stands and looking at where we stand today versus how it evolved last year, I would say that we expect it to be neutralized by the end of the year. All right. Thank you. The next question comes from the line of Alessandro Foletti with Octavian. Please go ahead. Yes, good morning, everyone. I would have two questions, maybe going back to the operational profit bridge, your slide 16. I was wondering if there are any pricing effects from your side and raw material impact effects that you maybe they are washed out in the margin mix line there, where you only have a two, but maybe this two is the result of two components i don't know j ust interested because we heard a lot on this subject from other companies. I have a follow-up. Okay. Maybe let me start and Greg can chip in. On the EBITDA bridge, we have not seen too much because we've been able to manage some of the cost increases f or example, the logistic aspect of the freight, I think that's affecting all the companies. Some of the supply constraints. We've been able to manage that, we have not seen the effect on the operational bridge. Going forward, I think most of our new orders and quotations, as it is a general market thing, we've been able to adjust that or we would have escalation clauses that allows us to have that readdressed with the customer. Yeah. I would add, Alessandro, that we're subject to the same forces at play as everybody else so w e're seeing the commodity cycle high, w e're seeing logistic and container prices going through the roof. We're seeing, whether it's metal, resin, everything has gone up. It's a combination of price increases i t's a combination of efficiencies that we've developed in terms of our ability to manage our costs. We don't make a big deal out of it because I think you guys hear it everywhere, and at the end of the day, we all have to manage. I think that what you're seeing is that despite the fact that we're impacted, in first half, we managed quite well, and hence the positive margin evolution. Yeah, it continues to be complicated a lthough in some areas we see a light at the end of the tunnel. As we approach the summer, we were really struggling, for example, in our Medmix business with some of the resins. Some of the products that we make, because they're for pharma or for dental, you have to have a specific type of resin so that you don't have a chemical reaction with whatever the slurry, the drug that goes into it is. We were seeing some grades that just were not available because there were capacity issues. A lot of it had to do with customers that had ramped down during the pandemic and that were struggling to ramp up. We're seeing some of that alleviated as we head into the second half of the year, and that gives us hope that we'll see a little bit of relief from those very tight supply chain conditions that we've been facing. To Jill's point, sometimes we make these offers, y ou make an indicative offer to a customer, and if the customer waits around for too long before giving you the green light, then you have to come back and say prices have moved. That leads to unpleasant discussions, and sometimes it slows down order intake a little bit i certainly have an example in mind in the U.S. recently where we were working with a U.S. chemical company, and I think there were three iterations, and every time we went back to them, the price was higher, and they were frustrated. But at the same time, they saw the same thing in their business, and we did come to an agreement in the end s o it's not easy, but we're managing. Okay, thank you. That's great. I have another two, three very fast understanding questions for you guys, if I may. Yep. I'm not sure I understood exactly what you said in the call. Remaining on this slide, Jill, did you say that if you would include APS, the chart would look similar? If you include APS in terms of the components and when you bring it apart, that means that you would see a huge volume uptick. Because of the rebound, you would also see positive mix coming from the fact that we have higher denser business. You would see positive acquisition effect because of the Haselmeier integration. A little bit of cost squeeze reversal, but that's really CHF 4 million-CHF 5 million. You'd see no pricing impact, because one of the things we demonstrated again, even in the pandemic, Medmix APS is a very resilient business in terms of volumes. These are not markets that fluctuate much in normal times, w ith the pandemic, dentists were closed, and retailers were closed, and so on. Volumes really dropped, but the pricing really didn't move at all. It was one of these things where volumes were divided by a factor for a while i t was painful, but the pricing never budged. It's really more mix than anything related to pricing in APS, hence Jill's comment. All right, thank you very much m aybe another one on the Free Cash Flow, probably again for Jill. You obviously pointed out a very good Free Cash Flow in first half that reduces seasonality. What should I understand out of it? That with your actions, you reduce seasonality in general? or that also on a full year basis you can generate more cash for the whole company? Good question. As I pointed, we have improved the seasonality and i think if you look to the full year, you probably should anticipate that in our full year we are around 5%-6% of sales. A little bit lower than first half, because first half is like 6.8% of sales, in terms of Free Cash Flow correlation to sales. I expect that in the second half year. As you've seen, our investment, typically we do an investment CapEx of around the same level as our depreciation. Our depreciation is around CHF 110 million. We have close to CHF 40 million in first half year. That's because we've been quite cautious in activating too quickly our CapEx i n the second half year, you can expect that therefore the remaining of our CapEx would come in. We would have, of course, a little more positive contribution from our profit but you know w e also have some payout of our restructuring costs in the second half year so a ll in all, that's why you can derive around 5%-6% of sales. If you compare to the past trend, that is still quite a significant improvement from the time that we were rather below 4.5%. Yes, understood t hank you. I did not expect you to be so precise. Maybe if I can add here, looking in the crystal ball, do you think that this sort of lower seasonality remains like that also in the future? Well, it is my aspiration to. All right. I think what we have is certainly a lot more operational measures that we've put in place i think the fact that we've also simplified our footprint with the reduction in the past year. I think all this, plus hopefully the market will not surprise us with different liquidity development like we have seen w e didn't see too much of that in the COVID-19 time so h opefully, that's not going to spring back after some of the supportive measures from the government. With all this being in good place, I think we can expect that seasonality should continue to be much better than before. Other questions? May I ask you another one, still? Yeah, go ahead. We hear from many, many companies that particularly in China, payment terms are basically not up for discussion. They tell you what the payment terms are, and they are typically super long. Are you doing a better job than others? Or maybe it doesn't apply to you guys for whatever reason? Well, I think that there are different ways you have i think from my recollection, the payment terms of China compared to the rest of the world has always been a little bit longer. If it is shorter, it is also practiced in a way that it's more like the norm, s ome of this you see rather that they are formalizing it, but they practice, maybe they improve their practices. In the past, they were also late in the payment, even if the payment terms is a little bit better. That's one trend. The other thing is, I think, you have other kind of terms and conditions when for project type business where you can work into advances and stuff like that. Yeah, I think so far we haven't seen that. We remain watchful as always, across the world to see how the payment patterns develop. I would add to what Jill said, that if you look at our businesses and you try to break them out historically, the area in which the payment terms have been really dictated by customers more than anything has been in energy, particularly in pumps and energy. I'm sorry, because it was a capacity game w hen you have overcapacity and you have customers that are struggling, oil and gas customer or power customers that were struggling, they became really harsh on payment terms, and we suffered from that. If you look at how much pumps for energy represents in order intake in first half, it's in the low teens. It's a more marginal impact on Sulzer than it's ever been. If you look at other businesses, like for example, China is a lot of Chemtech and a lot of service. In Chemtech, we are usually a chosen provider you know, o ur customers in China want to work with us because what we bring is unique and performs better than their other options, which gives us a little bit more leverage. The service business also usually has much better payment terms because it's a fast cycle type of business and it doesn't have these kind of trophy orders where the customer kind of blackmails you into accepting that payment terms because it makes your order intake and your growth look better. The point I'm trying to make, it's also a reflection of your business type and how much leverage you have and whether you have overcapacity or under capacity and how much product differentiation you have. Once again, the part that was most difficult for us in the past is energy pumps. They lead to a lot of good service business, but as an upfront business in terms of equipment, it's a tough business. It's a business that's smaller these days. All right. Thank you very much. I don't know if I'm the last one in the pipeline i would have a very final one for you, Greg, I guess. Shoot, and I think there's another question after that, but go ahead. Ask your question. Okay. We discussed about it in the past already, the Nordic Water business. Yep. Remember, it did not have such a great profitability, and you said, "No, no, it's going in the right direction." Can you confirm that? Yeah, it's going really well. We're very pleased with how Nordic Water is developing. What's great about Nordic Water is that Nordic Water is being considered for larger projects than it was in the past because it's got the backing of Sulzer and, es sentially the wastewater customers, before they were addressing a small company and now they're addressing a much larger company that they know because they also buy their pumps and their grinders and their screens from us. That's been very beneficial, and we're pleased with how the business is performing since we've acquired it. So far, so good. All right. Thank you very much. Thank you. The last question for today comes from the line of Roel van Endert with Helvea. Please go ahead. Yes, good morning. Thank you for taking my question, and apologies if this has been communicated already, and I didn't pick up on it. On the separation with Medmix, which you plan to do, what is the idea on the strength of the balance sheet you want to give that company, and how do you take the Tiwel cash effect into account? How do we take the Tiwel cash effect into account? well, Medmix is not gonna have any Tiwel cash because the Tiwel cash is staying with Sulzer. There's about, I think it's CHF 306 million of Tiwel cash now that's in Sulzer. Keep in mind that it's not debt. It doesn't bear interest i t doesn't have a maturity. It's really a payable, and it's a payable that can't be paid. It's not sequestered either w e're allowed to use it for normal business reasons. All of that Tiwel cash stays in Sulzer. The Tiwel cash is linked to two things. It's linked to the final part of the payment for shares, the shares that we bought from Tiwel when they were put under sanctions. The rest of it, that's about CHF 120 million, the rest of it is the accumulation of dividend payments. You'll continue to have an accumulation of dividend payments within Sulzer, and you'll continue to have that Tiwel cash essentially accruing. If you have a look at Medmix we said will pay about half a franc per share of a dividend. Therefore, Medmix will not be able to pay a dividend to Tiwel, same as Sulzer. You're talking about a much smaller amount, and therefore, we'll never have that discussion with you guys in Medmix because it will not be material, the cash that we're talking about. The capital increase will be used to finance the development of the business and essentially give it firepower for its growth, and also for further acquisitions that we have in mind. Keep in mind also, Jill Lee has a slide in other presentations, that there's a CHF 400 million intercompany loan that Medmix has, that it has to repay to Sulzer t hat loan will be refinanced by Medmix on the bond market once it becomes separate. On the basis of the size of the capital increase, we think that Medmix will be somewhere between 1 x and 2 x net debt to EBITDA of debt. As I said earlier in the call, it'll be closer, I think, to 1 x because the 1-2 x corresponds to the CHF 200 million-CHF 300 million range on the capital increase that we gave. On the basis of the interest that we're seeing, we believe at this point that it's more likely that the capital increase will be at the higher end of the range than the lower end of the range. At this point, we're still communicating a range because it's market dependent, and we will see in September. Does that answer your question, Roel? Yeah. I can now calculate it, right? That's good. Thank you. No more questions. All right. Thank you. Thanks. You could have given the absolute number. Oh, I'm sorry. I wasn't trying to avoid your question, Roel. What was the absolute number you were looking for? What is the net debt the company is going to have once they raise CHF 300 million? Yes, it would be 1-2 x of- No, he wants the number in francs. I said 1 to 2 times. the number in- The 2022 EBITDA is roughly, we said around CHF 100. About 25%. About 25%, and you do the math, it's about like, what, CHF 130 something? Yes, exactly. CHF 130 something, 1-2 times, it'll be, take the net debt, take CHF 150-CHF 220 or CHF 2 whatever. It'll be 1-200 times. We weren't trying to avoid your question. I just didn't understand that you were looking for the number in francs. No. It's It's okay. Yeah y ou can work on 25%, which is also what we have communicated. Yeah. Take my math and assume that it'll be CHF 150-CHF 200, CHF 220, and you'll be in the ballpark. Yeah. Yeah. Great. Thanks for that. Sorry. Sorry, we just misunderstood what you were asking. I went into a long explanation. I wasn't trying to show off i thought I was answering your question. I wouldn't have asked if you didn't push me for if there was something else. That's great. Thank you. Thanks a lot, Roel. Good luck for the second half. Thank you very much. Any other question from anybody? I think we are done. Jill, Christoph, and I wanted to thank you again for spending time with us today w e know it is a busy day in terms of companies reporting. We do believe that we have an exciting story to tell, an exciting story because all our businesses are doing well in first half and are poised to continue to do well in the second half of the year and beyond. As you know, that we have this spin-off coming, which we think is coming at the right time and will enable both businesses to reach their full potential. On those words, thanks again, and we look forward to talking to you guys again soon.