Good afternoon, everyone, and welcome. Thank you for taking time out of your busy schedules to join us today at this iconic building and online. I'm Siobhán Andrews, Head of Investor Relations here at Spectris. We are really looking forward to setting out the next phase of our strategy and sharing more insights into the outlook and prospects for our businesses today. You will also get to see our purpose in action with a number of case studies and hear directly from our customers. For those in the room, you'll get to see our products firsthand and engage with our team. First of all, logistics. Sorry, the boring stuff. Toilets are at the rear of the room, and the Wi-Fi code is on the back of the wall. On safety, there are no planned fire drills today. If the alarm is activated, the fire alarm will deliver voice instructions. In the event of an emergency, the affected floor and that one above will both evacuate. If necessary, the remainder of the building will be evacuated two floors at a time upon instruction from the fire service or building management team. Catering management team carrying Landing-42 signs will split the venue in half and evacuate guests down the east and the west or maybe west and east, I don't know. Stairwells. If safe to do so, the evacuation point is located at St Mary Axe Courtyards next to the building. The venue event manager will do a roll call at the assembly point, and it's important that all guests stay at that point until this roll call has concluded. Turning now to the agenda. Unfortunately, Andrew Heath, our Chief Executive, has contracted COVID, and so he cannot join us here in the room today. He is extremely disappointed. In fact, he said, personally gutted that he cannot be with you today here. You will get to hear directly from him with an update on the group's strategy. After that, it's Mark Fleiner, President of Spectris Scientific, followed by Ben Bryson, President of Spectris Dynamics, our two new divisions. After a mid-afternoon break, Rebecca Dunn, our Head of Sustainability, will cover the group-wide sustainability initiatives, and this will then be followed by case studies from Kimberly, Tanneke, Paul, and Thomas, all linked to our purpose to show how we help make the world cleaner, healthier, and more productive. Last but not least, Derek Harding, our CFO, will be up, and he will cover our financial profile and capital allocation policy. We'll then finish with a Q&A session, and after the formal session completes for those in the room, we'd be delighted for you to join us for drinks and canapés and visit our product demo stands, both ends of the room. Here you can see, here you can talk with the team directly. You can see our products in action. Down here, measuring sound, counting particles, analyzing materials. Here you can enter the VI-grade, the virtual world of a VI-grade Sim Center. Unfortunately, we don't have a driving simulator with us here today, but there is an example of a green powered race car, and you'll hear about that from Rebecca from our Spectris Foundation later. As well as members of the Spectris Executive Committee, we have a number of people from our businesses at the stands around the room. John, Alessandro, Nadia, and Rebecca. These are the people who've been involved in putting together the strategic plan we will lay out today, and they are very much focused on the execution and delivery of that plan. To get the real session underway, I'm delighted to share our new Spectris video. Then you'll hear directly from Andrew Heath, our man in the field, literally. For humankind, the path to precision is a path to progress. For centuries, we have sought to improve our understanding of the world around us, delivering innovations that have changed the face of our planet and advanced our society. Today, the pursuit of precision is crucial to successfully tackling the challenges of a sustainable world. The transition to clean energy, the transformation of mobility, the responsible use of scarce resources, and the medical breakthroughs to support the growing population. At Spectris, we believe that purpose combined with precision makes progress possible. We are harnessing the power of precision measurement to deliver a cleaner, healthier, and more productive world. Equipping our customers to improve the drugs we rely on, the food we eat, the materials we build with, the cars we drive, the power we need, and the air we breathe. We are working to make sure that the complex challenges of today become the solutions for a better tomorrow. We are Spectris, delivering value beyond measure. That's a great video because it captures exactly what we're about, combining precision with purpose, delivering progress for a more sustainable, better world. At our last Capital Markets Day in 2019, I set out what our strategy would be based on. I highlighted the development of sophisticated new drugs, electrification and autonomous technologies, advancements in material science, new manufacturing and process techniques, and a digital revolution in the home as well as in the workplace. As you will hear throughout today, by concentrating on these themes, we have created significant demand for what Spectris does, and that's delivering critical insights to our customers through premium precision measurements. Now, we clearly live in uncertain times with post-pandemic recovery, the impact of climate change, a war in Europe and inflation all shaping the macro environment. However, there has never been a better time, a greater need to harness the power of precision measurement to make the world cleaner, healthier, and more productive. This is what we do. This is our purpose. This is at the heart of who we are to delivering value beyond measure for all of our stakeholders. I am Andrew Heath, Chief Executive, and let me add my welcome to all of you in the room and online. I am so sorry and so frustrated that I cannot join you in person today, but I recently contracted COVID, and I'm still testing positive. However, you are in good hands. I have fabulous colleagues, and we are all truly excited to have the opportunity to lay out our plans and the outlook for the next stage of our journey, our strategy for sustainable growth. We have spent the last four years reorganizing and simplifying our business, creating the right mindset and capabilities for growth. Today, you're going to see our purpose in action, hearing directly from some of our customers and our employees too. Before I talk to you about our new strategy, let's look back at our progress over the past three years. Since our last Capital Markets Day in 2019, we have fundamentally reshaped the group. Most importantly, we have significantly improved the quality of our business, giving me the confidence that we are today more capable of compounding growth in the future and continuing to expand operating margins. I am delighted with the progress we have made, and so proud of my colleagues who have made this happen. Now I'd like to tell you what we have done to transform Spectris. We have repositioned our portfolio, prioritizing businesses where we are leaders in attractive markets with structural growth and sustainability trends. We have exited lower growth markets and lower margin activities. 7 businesses have been sold at an aggregate value, significantly ahead of the group multiple, generating over GBP 1 billion worth of proceeds, and we're returning GBP 500 million to shareholders in the process. We have completed 8 acquisitions, strengthening our customer offerings. At the same time, we've increased our customer focus and invested in growth, maintaining R&D through the pandemic, increasing spend in both 2021 and 2022. We've also strengthened the leadership team and our culture, and we've deployed the Spectris Business System, making us more efficient and effective. We've established clear and accountable ESG credentials, very much in line with our ambition to be a leading sustainable business, including launching the Spectris Foundation. Consequently, Spectris is now a simpler, more focused, more profitable, and more attractive business with a higher capability for sustainable growth than it certainly was four years ago. As you can see on the slide, we are growing strongly. Organic growth up 10% in 2021 and up 10.5% year-to-date. Operating margins are also up, and we expect to make continued progress this year towards our near-term 18% target. We have returned Spectris to an asset-light business model with cash conversion over 90% in the last two years. Return on gross capital employed has improved to 14.2% year-to-date from 13.7% in 2018. We have been busy creating a premium precision measurement business, a strong foundation on which to build. Let's now turn to the future and our strategy for sustainable growth. What I want to be really clear on is that we have repositioned Spectris as a leading sustainable compound growth business. With our refreshed strategy come important new medium-term targets. We now expect to deliver organic growth of 6%-7% through the cycle. We are targeting operating margins in excess of 20%, maintaining cash conversion between 80%-90% and return on gross capital in the mid-teens. We are committed to achieving net zero emissions in our own operations by 2030 and across that of our entire value chain by 2040 and ensuring Spectris is a great and engaging place to work. These targets are underpinned by our business model, our framework to deliver sustainable growth. We are owners of world-class precision measurement businesses with industry-leading domain expertise. Following the portfolio simplification, we are aligned more than ever with attractive sustainable growth markets with high barriers to entry. We are solving some of our customers' toughest challenges. We're investing for growth, both organically and via M&A, and driving operational excellence, enhancing our operating model. This is all underpinned by being purpose-led, a leading sustainable business, developing our people, building our domain expertise, and living our values. Let's now turn to our businesses and how we will deliver that growth. Following the refocusing of the group, we are now pivoting Spectris around two key divisions to provide additional focus. We have brought together Malvern Panalytical and Particle Measuring Systems to form Spectris Scientific under the leadership of Mark Fleiner. This is an international leader in advanced measurement techniques for materials analysis. With over a third of the revenue in pharma, with significant exposure into semicon, primarily advanced materials, as well as advanced research. This is a very exciting, high quality, high growth, high margin business with great potential. Both Malvern Panalytical and Particle Measuring Systems serve the same end markets across the same customer workflows. They provide leading scientific instruments and services, measuring particles down to the nanoscale. Making the invisible visible, if you like, helping our customers better understand and shape everything from proteins, metals, and polymers, to controlling aseptic manufacturing. In 2021, revenues were GBP 531 million, with an operating margin of 21.1%. HBK now forms Spectris Dynamics, led by Ben Bryson. This business is a global leader in advanced virtual and physical testing, and high precision sensing solutions. It is uniquely placed, offering the broadest solution with the ability to integrate both the physical and virtual worlds of test and measurement. Spectris Dynamics is empowering the innovators at the world's leading automotive, machine manufacturing, aerospace, electronics, and advanced research customers. Our revenue was GBP 425 million last year, with an operating margin of 16.5%. Together, Spectris Scientific and Dynamics comprise around 85% of the group's revenue. Our remaining businesses, Servomex and Red Lion Controls, will continue to be run separately. Now, both of our new divisions have leading market positions from which they can access compelling growth opportunities. You'll hear more about this from Mark and Ben shortly. Let me share with you why I am excited about the quality and opportunity of these two businesses. Spectris Scientific is a world-class business with a differentiated proposition, where customers need the best and can't and won't compromise, where the measurement is critical. We concentrate on delivering technology leadership by providing a breadth of instruments, software, and services to provide the best solution tailored to our customers' needs. We have leadership positions in drug discovery and development and microcontamination, with strong positions across material science with our state-of-the-art instruments. We partner with our customers and frequently get specced in. Indeed, our pharma customers refer to the benchmark Malvern measurement. Our particle counters are the most accurate in the industry. They are used to control the cleanliness of the most advanced semiconductor fabs, identifying impurities below 50 nanometers. No one else can do that. We also partner with some of the biggest materials and mining companies globally to ensure consistency throughout their materials and their products' workflow. We not only help our customers see the art of the possible, seeing things they can't see without us, we reinforce this with a high-touch application engineering and services model. To put it another way, as one US pharma customer told me, "Your problem solvers help my problem solvers solve our problems." The served market here is GBP 4.5 billion, and Spectris Scientific has around a 12% share, growing 6%-7% through the cycle. Similarly, Spectris Dynamics offers advanced high-precision testing and measurement solutions. We provide the broadest offering in the industry with leading market positions in physical and virtual testing, including the most advanced simulators and simulation software, also premium data acquisition systems, and high-precision sensors. Our integrated physical test solutions ensure the structural safety of the latest aircraft from Airbus to Sikorsky. Our leading driver experience simulators accelerate innovation for our automotive customers. The likes of Volvo, Ford, and Aston Martin have all been able to halve new vehicle development time. I'm enthralled by the opportunity we have to integrate the worlds of both physical and virtual tests. I was at Mercedes-AMG just two weeks ago and witnessed firsthand how they were using our driver-in-the-loop simulators to reduce the number and the cost of prototypes by over 20%. Our electric powertrain offerings are being used by the likes of BMW and Alstom, providing clean energy solutions in automotive, rail, and also aerospace. Our smart sensors are being used to automate surgery. The work we have done has given us new customers and new opportunities, and we've expanded the served market over the past three years to around about GBP 5 billion. We operate in the premium end of these segments, where superior quality, reliability, and strong domain expertise are essential, and we have around an 8% market share. This market is expected to grow around about 5%-6% over the medium term. Having refocused the group, we are more aligned than ever to markets with attractive growth trajectories, positioned in technology-driven end markets with strong fundamentals. As we look to the future across our businesses, we see several global trends driving growth. These include an aging population, which is increasing the demand for healthcare, the urgent need to solve the climate crisis, the transition to cleaner energy and mobility solutions, a more responsible use of the planet's increasingly scarce resources, causing customers to optimize production and improve yields, a more connected and automated world demanding ever more advanced computing and data. Also the onshoring of supply chains, and that's been compounded by tight supply and labor markets requiring improvements in productivity too. All this is alongside ever-increasing regulation and data management. Demand for our products and services is being amplified by these trends, resulting in a base market growth of 5%-6% and supporting our ability to outperform our core underlying markets and deliver through-cycle growth of 6%-7%. The purpose-led execution of our strategy over the past four years means many of these trends are already underpinning the strong demand we are seeing, given our advantage positions. I am pleased this has led to 25% of our sales now addressing health, having significantly improved our exposure to pharma and life sciences over the last few years, with increasing exposure to precision agriculture and the evolution of food. In addition, over 20% of our revenue is also helping make the world cleaner, from developing the next generation of electric vehicles, through to controlling emissions. With the remaining sales now driving a more productive world, such as advancing semiconductor manufacturing, enabling automation, enhancing assets and processes, and also accelerating innovation. Customer centricity is core to our business model, and over the last 4 years, we have shifted from largely transactional selling of hardware, being more focused on solutions, adding value throughout our customers' workflows and processes. We serve over 67,000 customers, supported by over 2,200 sales, application, and service engineers with our high touch approach. As we reshape the portfolio, we now have over 80% of our sales going direct to our customers. Our domain expertise is clearly valued, with over 60% repeat customers annually and a class-leading Net Promoter Score over 50. Recurring and service revenues now account for about 30% of group sales, with software amounting to about a quarter of that. This level of customer intimacy and understanding drives customer-backed innovation, informing our research and product development strategy, such that we intercept our customers' needs for the future, allowing us to move faster and deliver greater value. Indeed, our recent strong sales growth has been underpinned by new and enhanced products, which have helped deliver market share gains. We employ over 1,300 engineers, approximately half of which are in software. Over the last 4 years, we've increased our investment as a percentage of sales from 6% to 8%. Now, you may remember that I was critical when I arrived at Spectris of the amount of time being absorbed by our engineers into sustaining and maintaining older products. We have changed this. I am delighted to say the proportion of engineering time now spent on new value introduction has risen from 43% to almost 60%. The combination of increased spend and strong alignment with our growth initiatives has also improved our Vitality Index to 25% over this time period. Going forward, we'll maintain investment at or above 8% of revenue, and as such, expect the Vitality Index to strengthen from here. We also have the opportunity to compound growth further through M&A. We maintain an active pipeline of potential acquisition targets across the spectrum, from early life technologies to bolt-ons of various sizes, through to larger scale opportunities. We take a disciplined approach, ensuring there's a clear industrial logic and financial rationale consistent with our published capital allocation policy. We have built up a strong team to execute M&A, and our simple operating structure also provides even greater focus. Since 2018, we've acquired 8 businesses totaling GBP 70 million in revenue for a total net consideration of GBP 283 million. Our virtual testing activities has been a particularly successful example of a buy and build approach. Starting with the acquisition of VI-grade in 2018, followed by a number of bolt-ons, growing the business to now GBP 60 million worth of revenue. M&A remains an active area for consideration as we look to build out our leading positions. In particular, we are targeting opportunities in pharma and life science, advanced materials, metrology, sensors, electrification, software, and also advisory services, where we can help customers meet regulatory compliance and pull through greater product and service sales. In total, this will increase the overall group served available market from GBP 10 billion to GBP 13 billion. The work we've done over the last four years in reshaping our business, reorganizing operations, and concentrating our focus gives me confidence in the opportunity to transform Spectris into a premium high-margin business. We are making good progress towards our near-term operating margin target of over 18%. I've always said that this should not be seen as a ceiling, and today we're increasing that target to over 20%. With the high quality of the businesses in the portfolio today, our operating leverage has improved, and we're also driving operational excellence on top of that to improve productivity. Over the last three years, we've taken the Spectris Business System from concept to an effective vehicle to deliver daily continuous improvement. We also continue to refine our lean operating model. We are in the process of implementing a number of business transformation projects, such as the new ERP installation. This will take out structural inefficiencies, further supporting our margin ambitions. Now, how we do business is as important to me as what we do. Being purpose-driven and true to our values as we execute on our strategy ensures we deliver value beyond measure for all our stakeholders. I have already talked a lot about our new customer mindset, and that's enabled and supported by creating a great place to work for our employees, with a focus on engagement, diversity and inclusion, wellbeing, and mental health. We have committed to stretching, but we believe realistic sustainability targets, and they've been validated by the Science Based Targets initiative. You'll hear later from Rebecca on the progress that we've already made. To support our communities and build our future talent pipeline, we have initiated an active STEM program designed to attract diverse talent to support the growth of our business. The launch of The Spectris Foundation underscores our wider commitment to our communities and STEM education beyond Spectris. You will see later how our early donations are making a real impact right across the world. For our shareholders, we are building and growing a highly investable business which will deliver attractive and consistent financial returns over the long term. This all adds up to our strategy for sustainable growth. World-class businesses serving attractive structural growth markets with strong customer centricity, investing for growth, driving operational excellence, and will compound growth, increase profitability, generate strong cash flow, and strong returns on invested capital. We will always remain true to our purpose, sustainably delivering these results, driven by our values-based high-performance culture, delivering value beyond measure for all of our stakeholders. I'd now like to pass you over to Mark Fleiner, President, Spectris Scientific. Thank you. Andrew, thank you for that introduction. I've known Andrew for a number of years. That's the first time I've had a virtual introduction from Andrew. I am looking forward to sharing the Spectris Scientific story with you today. Before I jump into my presentation, I wanted to quickly introduce myself. I am Mark Fleiner. I started as the Business Group Director for Industrial Solutions back in 2019, and then transitioned to the President of Malvern Panalytical in April of 2020. Now I have an expanded role as the Division President for Spectris Scientific. I have the privilege of leading this great division made up of two really incredible businesses, Malvern Panalytical and Particle Measuring Systems. With talented people doing amazing things to help our customers every day as they develop materials that go into the products we use every day, and develop monitoring and sensing solutions that go into ultra-clean manufacturing environments. One of the things I'm really excited about is both businesses are 100% aligned with the Spectris purpose of being cleaner, healthier, and more productive. Again, Spectris Scientific is made up of two high-quality operating businesses, Malvern Panalytical and Particle Measuring Systems. Both have been key elements of the Spectris portfolio for years. The combination of these businesses is really exciting, especially when you consider both businesses are well positioned in two end markets with solid structural growth, life sciences and semiconductors. Both businesses sell into many of the same customers across these end markets. Some of the key statistics worth highlighting, over one-third of our people resources are directly facing customers, sales, application scientists, and service resources. We have a significant investment in R&D, both by way of people, capabilities, and facilities. We were investing just three years ago, about 4% of our revenue in R&D. We are now approaching 8% of revenue invested in R&D. Our business is global with customers around the world. We are highly profitable at 21.1% operating margin, and we have over 100,000 installed instruments operating at customer locations around the world. Now, what I'd like to do, I'm gonna share a video with you, and as I share it, I really wanna get your mind in the right place. I want you to think about the circularity of materials. Think about the science, engineering, and recycling of materials, and also how crucial ultra-clean manufacturing is for semiconductor companies and pharma companies. Here's the video. Materials shape the world around us. By looking more closely, really closely, we unlock their potential. We apply the science to make the invisible visible, unleashing the power of very small things to make big things happen. Innovating the way we measure, characterize, analyze, and produce the materials that advance and shape our future. We equip our customers, leading companies, universities, and researchers around the world to create the medicines that cure us, the foods and drinks we enjoy, the materials we build with, the chips that drive our computers, the energies that power us, while ensuring the cleanliness and compliance for the cleanest of clean manufacturing environments. We harness the power of precision measurements to make the world cleaner, healthier, and more productive. Spectris Scientific. Scientific solutions for a better world. Video highlights. Our products and solutions are used by our customers to make the invisible visible. We deliver value beyond measure, providing critical insights for materials used to make the products we use every day, make those products better, faster, lighter, and stronger. Products like maybe the medicines you took today, the battery in your mobile phone, the windows in this room, the semiconductors in your computers. For ultra-clean manufacturing environments, we provide contamination monitoring to ensure medicines are not jeopardized and semiconductors are not compromised. If you maybe took some type of medicine today, during the discovery, formulation, and quality checking of that medicine, it probably saw one of our instruments. If you came here in an electric vehicle or maybe own an electric vehicle, we help the scientists and engineers evaluate and select materials to help reduce weight and maybe increase range. For those of you that joined us in May in Malvern at the Teach-In Day, I highlighted the material workflows for a number of our end markets, pharma, semiconductors, catalysts, batteries, food, additive layer manufacturing, just to name a few. At the end of the day, our ability to deliver critical insights to our customers is what we do. We do this throughout the materials workflow, from research and development to product. It begins with responsible extraction, working with our mining and oil and gas companies, through the circularity of materials, raw materials, engineered materials, manufactured, and eventually recycled materials. Working with large and small companies all over the world to innovate and problem solve around the evaluation and selection of materials. We are able to develop our solutions once and then apply them across different end markets and applications, meeting the customers where they are today and where they'll be in the future. We are focused on high-growth end markets that we group by life sciences, material sciences, semiconductors, and academia. We are well-positioned in high value, critical to quality areas where precision measurement, domain expertise, and analytics are valued by our customers throughout the workflow. As you can see, all of our end markets demonstrate structural growth and have strong CAGRs through the cycle. For life sciences, it is roughly 1/3 of our revenue, with an estimated 16% market share of the served market and growing at 6%-7% through the cycle. We are seeing continued investment in small molecule and biologics R&D, onshoring of facilities, and a commitment to regulatory compliance. For material sciences, again, it's roughly 1/3 of our revenue, with an estimated 7% market share for advanced materials and 10% for primary materials of the served markets. Market growth through the cycle is estimated at 6%-9% for advanced and 3%-5% for primary materials. We're seeing investments in batteries, additive manufacturing, focus on responsible extraction from mining and oil and gas companies. Electrification of everything is driving investments in all kinds of materials. For semiconductors, it is 17% of our revenue with an estimated 13% market share of the served market. We see the growth at 8% through the cycle. We're seeing semiconductors going through a CapEx super cycle, focused on miniaturization while determining the location of manufacturing facilities requiring the cleanest of clean manufacturing environments. Finally, academia. It is 13% of our revenue, with an estimated 17% market share of the served market. Market growth is estimated at 6% through the cycle, and we're seeing investments supported by governments aligned with critical technologies underpinning fundamental research priorities. These growth drivers provide us confidence of the growth in these markets and reinforce our investment decisions and focus on these end markets. Now, let me go into a little more detail on each one of the end markets. In life sciences, we work from molecule to medicine, supporting customers right through the process from drug discovery to final manufacture. If you speak to R&D heads in life sciences and pharma businesses, they are super focused on anything that can make this process more efficient because the costs of missteps are so high. What do we do? First, we give them precision measurements. No one does this better than us. Customers buy from us because they trust us to get measurements right even at the nanoscale. That is not the only benefit we bring. The data insights we offer improve decision-making and ultimately financial returns for our customers. I'm excited about our position in this end market and the growth potential for us. The year-over-year growth or year-over-year revenue growth for small molecule, biologics, and aseptic manufacturing. These results speak for themselves and reinforce why we're investing in life sciences. For material sciences, our customers need to make products better, more quickly, and that's where we come in. We make the material evaluation and selection process easier, speeding up R&D and time to market. At Spectris Scientific, again, it's precision measurement and then domain expertise, which helps customers choose the right materials for their products. For material science, I want you to think about things like batteries, fuel cells, catalysts, additive layer manufacturing, metals and mining. We are working with our customers to make their products better every single day. Please note excellent year-over-year growth rates, mining, minerals, metals, and particularly, I wanna highlight batteries. The growth in battery technology is significant, is a significant trend in the global economy. We are leaders in it, and we touch all parts of the customer's workflow, from raw materials all the way through to recycling. In semiconductors, we deliver solutions for ultra-clean manufacturing and material selection to enable the miniaturization of semiconductors. We do this with a super demanding customer base that needs to trust its suppliers in order to achieve their objectives by accelerating development, improving yields, and reducing waste. So why do they work with us? Because we have the best measurement portfolio for monitoring ultra-clean manufacturing environments where contaminants will wreak havoc on product quality and yield. We also have the experience to provide actionable insights into material selection, and our 24/7 support guarantees uptime. In terms of market opportunity, I would emphasize our year-on-year revenue growth in contamination control and thin-film metrology. In semiconductors, we benefit from having a trusted position within a market we expect to have solid growth over the long term based on the electrification of everything. Finally, in academia, we support world-leading researchers, professors, and students by having a broad portfolio of analytical instruments, highly utilized material research centers, and characterization laboratories. We are advancing fundamental research, the science and engineering of next-generation materials for products in all end markets, medicines, foods, advanced energy, agriculture, mining, minerals. You name it, we touch it in academia. As you can imagine, with these kinds of use cases, academia needs easy-to-use instruments with the most precise sensor capabilities coupled with advanced analytical software. That's exactly what we deliver. Our advanced analytical software are recognized by researchers and key opinion leaders all over the world as the best in making the invisible, visible. Academia is 13% of our revenues and delivers solid growth at high single-digit% year-on-year. Crucially, there is a direct connection between fundamental research translating to applied research at our customers in life sciences, semiconductors, and material sciences. That's the connection. Now, customer voices are heard loudly, right? We listen to the customer voice. I have a short video introducing three customers. Two that are looking at aseptic, ultra-clean manufacturing, and one in batteries. Here you go. At Altris, we're making batteries that compete with lithium-ion batteries. We do it at a very low price point. Our technology is inherently non-flammable and uses non-toxic materials. If you take into consideration the flammability and cost of lithium-ion batteries, adoption of clean energy is becoming incredibly tough. That's where we come in. The research here is very exploratory, and we feel that we have some technology on site that lets us screen things much quicker, one of which being the in-operando XRD that we got from Malvern Panalytical. It really speeds up our analysis and our understanding of our battery materials. Our experience with the machine, our experience with learning what the machine has to offer has been phenomenal. The support from Malvern has been excellent. It's an exciting stage that we are in as a company and the potential that our technology can address. Pfeiffer Vacuum is a leader company in vacuum technology, serving 4 markets: R&D, emerging technology and semiconductors, analytics, and industry. We're also known as a leader in contamination control for semiconductor fabs. PMS is a supplier of Pfeiffer Vacuum since 15 years now. When we have started contamination control solution, it was obvious to us to work with PMS as a leading company in this field. They are providing us CMS technology and also particle counters. We are serving semiconductor market for very demanding customer. It means that we request also from our suppliers the same agility, flexibility, reliability. We consider that PMS has the right mindset to serve this market and to be a good supplier of Pfeiffer. Groninger was founded in 1980, and at the moment we have approximately 1,300 employees on three locations. Groninger is a supplier of filling and closing machines for different types of containers like vials, syringes, or also cartridges. Our customers are mainly from the pharmaceutical, consumer healthcare, and cosmetics industry. Groninger wants to deliver our customers a holistic solution, and for that reason, we are always trying to get better also in pharmaceutical processes and understand which needs the customers have. For this reason, we are also partnering with PMS. When we have questions, PMS send us more and more, and really quickly, the answers. As a family business, Groninger is always long-term oriented, and together with PMS, we developed a solid standard for our machines in environmental monitoring. With this standard, we can, on the one hand, make it safer for the personnel in the pharmaceutical industries as well as in the end for the patient. Because of our customers, we are investing. R&D is driving our organic growth, where we are investing roughly 8% of our revenue. As I said earlier, three years ago, that was about 4%, a little more than 4%. This investment is aligned with the commitment and focus of roughly 450 scientists and engineers in innovating and problem-solving with the customer in mind. We are committed to growing our leadership position in key platforms. Our commitment to grow and maintain our technical leadership starts by bringing the customer at the center of our product development roadmaps. By combining sensor technologies, the power of data science, and customers' workflows, our platform designs are and will continue to be easy to deploy, maintain, and service, ultimately delivering unsurpassed value to our customers that goes beyond the limitations of conventional measurements. Our commitment to our customers, our commitment to our customers' success, is also supported by deploying a truly global R&D footprint. We have R&D centers located in the U.K., in Europe, U.S., Canada, China. We've got two software hubs, one in Porto in Portugal, one in Bristol in the U.K., which happens to be the home of our data science center. We have identified areas for breakthrough innovation. We're looking at software, consumables, digitalization, automation tools. You can see them listed here. What I wanna highlight is the monitoring of aseptic manufacturing. There is enormous potential because of the material risks to our life science and semiconductor customers, which we help mitigate. We've had a number of product launches over the past couple of years, and just to highlight a few. Our Zetasizer Advance instrument, which has been well utilized in vaccine research. We've had a number of product launches over the past couple of years, just to highlight a few. Our Zetasizer Advance instrument, which has been well utilized in vaccine research, has over about GBP 125 million of revenue over the past since 2018 launch. We've invested about GBP 8 million of R&D with a kind of a +20% IRR. Super successful product. The OmniTrust software solution supporting pharma customers with their 21 CFR Part 11 compliance. Again, over GBP 18 million of revenue against about GBP 3 million of invested capital, 18% IRR. That's a recurring revenue stream. Finally, our Ultra DI 20+ for cleanroom monitoring and control was recently launched in July of this year, and we're expecting similar acceptance by customers and similar financial performance. We are also investing in M&A aimed at compounding growth through acquisitive opportunities. With that, there must be a nexus with our key end markets. We are looking at bolt-on opportunities to fill gaps in our portfolio, and we're also looking at medium and large opportunities to strengthen and expand our portfolio and add further value to our customer workflows. The addition of Creoptix earlier this year filled a gap and strengthened our position in research and discovery for our pharma customers. Just to highlight, there are medium and large opportunities we have considered and pursued. These have the potential to expand our portfolio of instruments and solutions across the customer workflow and expand our domain expertise. They're well-aligned to the end markets we serve. Now in summary, I trust that this demonstrates the value and approach of Spectris Scientific and how we take it into the future. We are a more focused, more profitable, and a more resilient business. If I could leave you with four key messages. We provide critical material insights with instruments, workflow, and data science. We are focused and well-positioned to outperform in high growth end markets that have structural growth and clear sustainability trends. We're working with our customers, leveraging our domain expertise to innovate and solve their challenges from early research to manufacturing to recycling. We will continue delivering profitable growth with strong and sustainable margins. At Spectris Scientific, we make the invisible visible. Thank you. Now, I would like to hand over the stage to my colleague, Ben Bryson, and have him tell you about all the cool things happening at Spectris Dynamics. Ben? Thank you, Mark, and thank you for sharing with us today your great story for Spectris Scientific. Let me just start by saying just hello. I'm Ben Bryson. I've been with Spectris for nearly three years, and I'm incredibly proud to be leading the Spectris Dynamics business. I've spent 20 years in aerospace making things fly, and that experience has given me a deep understanding of innovators' needs. We have great people, we have really great technology, and our teams are focused on helping customers solve their innovation challenges. We help our customers to develop and manufacture their cars, planes, industrial machines, and smartphones. I have absolutely no doubt that everyone here has connected indirectly with our solutions. I'd like to start today's presentation by sharing with you a short video. We empower the innovators, and here's how. Spectris Dynamics. We empower the innovators by integrating the virtual and physical worlds, providing the essential sensing and data insights, software, and analytic solutions. Empowering our customers to innovate with greater confidence more quickly, more efficiently. Solving big challenges for a better world, for greener energy, and the electrification of mobility. Connecting society, accelerating automation, advancing production, driving productivity, ensuring safety and reliability. Cleaner, healthier, more productive. We are Spectris Dynamics. Dynamic solutions for a dynamic world. That's great. I really love that video. I think it brings to life what we do as a provider for our customers. You know, Spectris Dynamics has been innovating for over 75 years, and our customers are located in over 50 countries around the world. We need to be close to our customers to understand their technical needs, and we have over 3,000 employees, of which 500 are customer-facing and over 35,000 customers. Our people are our differentiator. They have strong domain knowledge and work in partnership with our customers. As I said, we empower the innovators. We have a focused range of technical solution that enable customers to innovate across the whole product life cycle. The business is simple to understand. For R&D, we test virtually and physically, and for in-process, we provide precision sensing. Key to understanding what we do is what we call the closed loop. That's what's happening on the left-hand side of the chart. Today's engineers want to design in the virtual world using simulators and simulation software. They then move to validate in the physical world using data acquisition software and sensors. Our technology is the bridge between both worlds, taking the learnings from each and applying it to help engineers accelerate innovation. The backbone of Spectris Dynamics is our domain and physics expertise. The beauty of the business is that what we learn in R&D, we then apply in the in process, and our integrated software solves the big data challenge for our customers. We are focused on four premium product lines: virtual test with a serviceable market of GBP 1 billion and growing at 10%, software, a market of nearly GBP 700 million and growing at 10%, data acquisition, a market of GBP 1.6 billion and growing at 4.5% or 4%-5%, and sensors, market of GBP 1.9 billion and a growth of 4%-5%. I draw your attention to two things. Firstly, we have leading positions in four product lines. We are either number one or number two in the premium space of the market we serve. Secondly, the product lines complement each other, providing customers with a complete test solution. This combination is our physical test business, which represents 50% of our annual revenue, of which GBP 45 million is generated by software. You can kind of see that across the top of the chart. We have a fantastic business that is growing, and we are very well placed in four attractive markets: automotive, aerospace, industrials and personal audio. We support Ford in their R&D center in Detroit, Airbus in Toulouse with their aircraft structural testing, Schenck in Darmstadt with their weighing process solutions, and Bose in Boston designing audio equipment. All are premium segments, all requiring quality and precision. This foundation gives us a meaningful platform for growth. The four markets we serve are all benefiting from mega trends. Virtual innovation. Automotive is moving to simulators to design. We are speeding up the development process, reducing cost and being more sustainable with significantly fewer prototypes. Digital innovation. There is more and more known about complex material properties. When these are modeled in simulation software, engineers have the confidence to rely on the insights. This massively reduces the cost of innovation. Transformation of mobility to more sustainable solutions will see car makers advance the development of electric vehicles. The trend to more sustainable mobility is accelerating around the world. Finally, automation and productivity. In a connected world, customers will pivot to solutions to enhance their processes and assets. These four trends represent 60% of our growth through the cycle. In the following four slides, I will explain how we will harness these trends. We are a leader in accelerating innovation with virtual testing solutions. In the past four years, it has grown to be a GBP 45 million business. To build a physical prototype can take months. A virtual one can take just a few hours. This radically accelerates innovation. Our customers can bring a car to the market faster, reducing development efforts by as much as 50% and saving up to 20% of cost and improving the quality of the product. Customers like Aston Martin, Volvo, and Pirelli are using our simulators to speed up their development. As an example of how we reduce CO2 burden on the design, Lamborghini shared how, by using our simulators, they avoided using 200 tires in their development program. The potential for the entire industry could be as many as 200,000 tires per annum. We plan to more than double the size of our virtual test business in the next cycle, and Thomas Lippok will talk further about virtual test business later in today's presentation. The next mega trend is digitization. Our customers rely evermore on simulation tools to innovate, generating huge amounts of data from testing. They think about an engineer who needs to know the structural dynamics of a car when including a battery. Our software avoids complicated physical testing, getting to the customer to the solution faster. As a result, customers are creating more and more data, and this is getting harder to manage. We solve this problem too. Our software manages the data and provides the customers crucial insights. They can spend less time mining and more time innovating. We have ambitious plans for our software business, targeting a doubling of income, lifting it to 25% of Spectris Dynamics revenue through the cycle. Now I want to turn to our strategy for electric vehicles. Our mission is to help customers to design electric vehicles. The cars must go further safely. Our work is focused on the performance of the electrical powertrain and the vehicle durability. The electric powered data acquisition gathers huge amounts of information in minutes, providing precision insights. The speed of our system is competitive advantage, and it's valued by developers at BMW. It gives them confidence in their customers' key buying decision, which is range. Our EV business has already outgrown the market from GBP 26 million-GBP 52 million, and we expect that growth rate to continue. Now on to our last mega trend, which is automation. Automation can deliver significant improvements in productivity, but only if the processes are reliable and accurate. We measure with the highest accuracy, eliminating waste, and our smart and connected sensors make decisions at the point of measure. By making the sensors smarter, we make the machines more productive. We've helped John Deere create a seed planter that can precisely measure the depth of planting in all soil conditions, improving crop yield by as much as 3%. I'm super excited by our potential. We will more than double our business through the cycle, significantly outperforming the market as we harness a more connected, a more autonomous, and a more productive world. In this slide, I'd like to demonstrate how virtual test, physical test, and in-process come together, and I'm gonna use an example from the automotive sector to help explain that. Our simulators speed up the development cycle, telling engineers how the vehicle will handle and where modifications need to be made. Our software connects the physical and the virtual test. This is the closed loop that we know is key to R&D efficiency. At the bottom of the slide, you can see how our software and sensors help end-of-line testing for production. Out on the road, we use our software to monitor performance, helping customers and companies optimize their fleets with predictive maintenance. As you can see, we are bringing value to our customers throughout the entire life cycle. Now you've heard it from me, let's hear it from our customers. I'm gonna share with you a short video that supports how we help our customers in HBK to innovate. InTest is an independent company, and our business is test bench engineering and manufacturing, both for laboratories, for our customers, and also for production testing. HBK helps serving our customers. It dates back into year 2007. We looked into it, and we saw best-in-class system for data acquisitions with the highest accuracy, the highest galvanic isolation, and the highest performance. At HBK, there is a very good balance between engineering culture and business culture. The ingredients of this success so far remains for the future. We are Greenmot. Greenmot is a company which is dedicated to support zero emission in the area of automotive and heavy-duty vehicles. We decided to develop a new opportunity, which is the retrofits of diesel industrial vehicles like buses or coach transformed to electric vehicles. Our partnership with HBK is historical. It started early at the beginning of the company. HBK systems are one of the best in the world. We were needing this accuracy because we are selling the results of measurements. Really things that Greenmot will develop very quickly in the coming years based on the development of the retrofit market. I'm confident that video gives you a sense of why our customers adopt our technology. It's really great to see. Our customers are driving innovation, and so are we. Our strategy is straightforward. We'll continue to invest 8% of revenue on R&D focused on four verticals. In virtual testing, we're consolidating our technical leadership with our immersive software capabilities and building real-time computation, including Hardware-in-the-Loop. Simulation solutions and data management, increasing our software capability, and solving the big data challenges faced by customers. Consolidating to one scalable data acquisition system, an application software package that is high speed, multichannel, and has seamless integration with sensors. Connectivity for our sensors, smarter, autonomous, and more productive. A great example of investing for growth is our OEM sensor product line. By using our domain expertise, we adapt the customer's hardware to make it sense, and this delivers a return of over 200% and a payback in less than two years. It's these products that have driven our Vitality Index up to 35%, and we intend to keep it there. M&A is also a key element of our growth agenda. Our targets are aligned to our customer's life cycle. We have an established track record of acquisitions across the business groups. Going forward, we see opportunities to add technology and capability. In virtual test, we want to develop capability in multiphysics, data management, and real-time computation. In physical test, our focus is on electrochemicals, batteries, and motor simulation. For in-process, we will add sensing domains to bolster our offering. To demonstrate our success, I want to share with you virtual test growth journey. We recognized the industry was pivoting to innovating in the virtual world. We started to build our virtual test division in 2018 when we acquired VI-grade. Three years later, we are now a significant player in this fast-growing and exciting market. Our customers are using virtual test capabilities to innovate. When we acquired VI-grade, the business had revenues of GBP 13.5 million. Through the acquisition of RightHook, MTEK, CCRT, combined with our strong organic growth, the virtual test division is on track for revenue in 2022 of around GBP 60 million. We expect it to more than double in size through the next cycle. In building this division, we have spent a total of GBP 158 million on acquisitions. We are on track to cover the cost of that capital after the first 3 years, and we expect our return on this investment to be around 20% after 5 years. We will continue to improve operating margins for the division. There are 3 focused areas, each one targeting an improvement to increase the efficiency of the business. First is growth. I've shared with you the strategic growth projects. Each one is accretive to our journey and will bring gross margin expansion. Key will be the growth of our software revenue to 25% of sales. Second is our business process improvements, including Salesforce.com and SAP deployment, creating a common set of processes for the entire business to operate on. We plan to complete Salesforce through 2023 and SAP through 2024. Spectris Business System, using lean tools to create a continuous improvement culture where everyone is empowered to improve the business every day. Each one will deliver improvement through this next cycle, helping to achieve our ambition on margin expansion. In summary, we are an established leader in high-performance virtual test, software, data acquisition, and sensing. We are well-positioned in strong end markets, supported by sustainable trends for digitizing and decarbonizing world. We are executing and expanding on strong fundamentals, integrated virtual and physical test solutions, more software-oriented R&D, operational excellence, and strategic value creating M&A. We are focused on margin expansion through strategic growth initiatives, business process improvement, and creating a lean culture. At Spectris Dynamics, we empower the innovators. Thank you for listening. You'll be pleased to know we now have a short 15-minute break. I welcome you all to grab a cup of coffee. When we return in 15 minutes, we'll be joined on the stage by Rebecca Dunn, who will share with us, or share with you, sorry, our sustainability strategy. Thank you for listening. Hi, I'm Rebecca Dunn, and I head up Sustainability at Spectris. Sustainability is a word that's used a lot, but within Spectris it has a really simple meaning. It means in everything we do, we're asking ourselves, "How are we building our company for the future?" By asking this question, we create value, not only for the stakeholders of today, but for the stakeholders of tomorrow. Andrew, Mark, and Ben have shared with you how our markets are evolving as we support our customers to meet the challenges of the future. I am going to tell you how we're evolving to ensure that the way we do business supports all our stakeholders, starting with our planet. We're ensuring that both our direct impact and the wider impact of our products and services help move the world towards net zero. We are led by our strong ambition to become net zero across our own operations by 2030, and across our value chain by 2040. At the same time, we're ensuring that our successful adaptation to the physical and transition risk posed by climate change. For our people, we must be a great place to work for our current employees and the next generation. We must encourage the best talent to join us, grow with us, and bring their whole selves to work with us. To do this, we're prioritizing employee engagement in our Connect program using the Gallup methodology. We're building group-wide approaches to mental health through our Time to Talk campaign, inclusion and belonging, and we're building new and innovative pipelines to attract future talent. For our value chain, we're ensuring that both our suppliers and customers recognize us as long-term partners in light of their values. Our code of business ethics has long been at the heart of our approach, and we've built on this with our active participation in the UN Global Compact, and the expanding use of EcoVadis to assess the ESG risk in our supply chain. Finally, for society, we recognize that we have a platform that we can use for wider benefit. Through the Spectris Foundation, we're proud to be engineering brighter futures for children across the world. Today, I'm going to provide some context on two of these important areas and share how we're delivering on our net zero ambition and building our talent pipeline to the future. I'm really proud of our net zero ambition. I'm proud that it's stretching, I'm proud that our ambition has been validated by the Science Based Targets initiative against a 1.5-degree warming scenario. I'm most proud that we put this ambition together with employees from across our business, and those employees are now owning the delivery of this ambition at all levels across the group. Because our ambition is owned by our employees, we're driving progress at multiple levels. Our leaders are supporting the switch to renewable energy across the group. Our early success is shown at PMS, where 100% of operations will be powered by renewable energy by the end of 2022. We're coordinating action on energy efficiency with global energy efficiency audits supported by Schneider Electric, and we're investing in our ambition. We've publicly committed to investing at least GBP 3 million per annum to reach net zero, and we're driving progress through the Spectris Business System. Kaizens are happening on waste and environmental impact. Our R&D teams are developing the sustainability of our products through lifecycle assessments, and we're assessing the sustainability of our supply chain with the support of EcoVadis. The big difference in our approach that I'd like to emphasize today is that we're empowering our people to provide the solutions. We've launched volunteer green teams across the group, and employees are bringing their unique perspective and experience to reduce our footprint. I want to tell you about the smiley face here on this slide. This smiley face is sitting in one of our labs in Sandwich in Kent, where scientists sometimes forgot to close the fume hoods, leading to unnecessary energy use. Our local green team decided to add two stickers to the fume hood, each half of the smiley face, and the complete smile only appears when the fume hood is closed. With 211 fume hoods now in our UK labs, we're reducing energy use by up to 40%, and we're cutting our energy bills in those labs by over 10,000 GBP a month. Now, the simplicity of this solution makes me smile, but what sits behind it shows how we will reach net zero. By engaging our employees, we're finding smart solutions that are not only saving carbon emissions, but saving time and money too. Everyone in Spectris is being empowered to affect change as part of our net zero transition. Now, let me share some details with you on our progress in STEM. Our success relies on our people. We have a highly specialized workforce in science and engineering and operations, and we need the very best talents to deliver on our ambitions. We need the next generation of talent to choose to join us. We recognize that the people we're recruiting from universities today think differently. They're attracted by different offerings. Offerings such as purpose, engagement, and inclusion. Our point of attraction also needs to be different, so STEM is a group priority. We have key global programs in place to reach today's young talent in a way that they appreciate and recognize to ensure that the best talent joins Spectris. One example in the U.K. is our sponsorship of young professionals. Through this sponsorship, this year we've met over 10,000 young students in the U.K. who are about to pursue further education in science and engineering. Through online and in-person work experience, we're now reaching new and diverse groups of students, and this year we'll begin to link this relationship with our apprenticeship program. Another example is our online global work experience program with Forage. This program brings dynamic problem-solving taking place within the group to engineering undergraduates worldwide. We're working with partner universities to build this into their curriculum, familiarizing students with Spectris and highlighting the exciting career opportunities within the group while also supporting their own technical development. Talent is naturally diverse. We need diverse brains, diverse backgrounds, and life experiences to deliver brilliant innovation, and our partnerships with the Society of Hispanic Professional Engineers, the Society of Women Engineers in the US, the Women's Engineering Society in the UK, and the Professional Women of Color Network in Denmark are bolstering our diverse pipeline and supporting our diverse employees to give back to their own profession. Beyond our own talent pipeline, we've also recognized the opportunity to influence the world of STEM education, to bring opportunities for young people in science, and to support our employees to make a wider difference to society. In 2021, Spectris donated GBP 50 million to form the Spectris Foundation, and this money has now been invested by the foundation. It's expected that up to GBP 1 million per annum will be donated to support global STEM charities, and I'm delighted to introduce a short film on our progress made. The foundation was established in July last year, we're endowed GBP 15 million from Spectris, and we're now an independent charity who gives grants to STEM education. Since our inception, we've granted 9 STEM grants around the world. This includes 4 projects in the UK supporting STEM subjects in educational settings. 3 projects in the US with a focus on addressing the STEM gender gap. A project in India which will provide hands-on experience to students emerging STEM industries. A project in Ghana supporting the vital work of the African Science Academy. We have two ways in which we decide grants. Firstly, we have our employee-nominated projects with over GBP 60,000 donated across 16 different local causes to Spectris group locations. My son, Vinton, got involved in the green car project at the UTC. He approached me and said, "Is there any opportunities for your company to look into sponsoring our project that we're doing?" Got in touch with the Spectris Foundation to see if it was a project that would be of interest to them, and they're very glad to see that it was. The project started as an electric car racing team. It concludes with a race at a real race track. This isn't like anything we've ever done before. It's just a really unique opportunity to show our skills. After working on this project, I think I want to work in engineering. We also have our STEM grants. These provide larger projects with the funding they need to provide quality science, technology, engineering, and mathematics education around the world, including the African Gifted Foundation, who run the girls only African Science Academy in Ghana. They provide full scholarships to low-income backgrounds to ensure that women can be at the forefront of Africa's transformation through STEM industries. What I love about ASA is that ASA sees potential in young African girls and gives them the opportunity to develop themselves and go for fight for their dreams. We wanna make change. We wanna make sustainable change to our planet, for example. We need these students and young people to get involved in these core amazing subjects. We're really looking to give anyone and everyone the opportunity to a quality education, especially in STEM. I'm very lucky to be surrounded at Spectris by a like-minded team who all agree that the way we do business today will impact the society of tomorrow, and I'm truly excited about evolution and building long-term value for all our stakeholders. I will now hand the stage to Kimberly, Tanneke, Paul, and Thomas, who will provide some real-life context about how at Spectris we're delivering a cleaner, healthier, and more productive world. Thank you. Thank you, Rebecca. Good afternoon. I'm Kimberly Miller, Executive Vice President of the In-Process Business Unit within Spectris Dynamics. I've been with Spectris for over a year but bring 30 years' experience in the industrial sectors, primarily within aerospace and automotive. I have the pleasure of introducing some exciting work we've been doing in the support of a cleaner environment. I'd like to start with a short video. Our world is changing. We see it all around us. Increasing temperatures, changing weather patterns, increasingly impacting the way we live. Climate change is happening, and it is our greatest challenge. To overcome it, we need to equip ourselves with the means to make progress happen. Meeting the demands of today without compromising the ability of future generations to meet their own needs. At Spectris, we are innovating for a cleaner world. Precision measurement is paramount in successfully tackling the clean energy transition. Our technology and expertise is enabling our customers to create a cleaner world, reducing energy consumption, waste, and emissions, accelerating the electrification of mobility, developing efficient and reliable battery technologies, developing vehicles virtually, not physically, developing lighter and more efficient materials to reduce energy use in transport, and enabling the development of clean energy solutions for the future. As a responsible, sustainable business, we are actively reducing our own impact on the environment, driving to net zero across our own operations and entire value chain. Innovation for a cleaner world. Spectris Dynamics has a long and successful history of partnering with all major vehicle OEMs around the globe. Some of these are BMW, Volkswagen, Rivian. We've supported them with advancements in safety, comfort, performance for over 30 years. Currently, these partners of ours are in the middle of their largest transformation they've ever been through. That is this move away from internal combustion engines to electric power. Where do they turn when they have need this vital support? They turn to people they trust to deliver. They have turned to us. At our core, we are a company of innovators, and innovators thrive when disruptive transformations are taking place. What's really gratifying about this transformation is the support that we're working for the future of our planet. We are making the world a cleaner place. The transition to electric power has not been easy. Ben mentioned earlier, it's not only about the obvious powertrain design challenges, there are many more design and technology hurdles facing the customers to move to electric power. Take range, for example. There is a clear race for range. Customers are not buying electric vehicles because they're worried about how far they can go on one charge. Safety and weight, how well a car performs is closely tied to weight, but lighter doesn't always mean better because it could compromise that safety. One of the most significant contributions we provide, as we do with all of our markets, is the insight and analytics that help our customers bridge knowledge gaps. By partnering with these customers, we really help them identify and solve around the areas of the unknown. Starting with range, what do we do to improve range? There is one limiting factor to range, and that is the energy storage of the battery. Our customers need to make the most advanced, efficient powertrain to get the highest range out of their batteries. How do we help where others can't? We currently offer the most advanced power analyzer on the market. Our analyzer makes their testing more efficient. It means their testing now takes place in minutes instead of days. Yes, minutes, not days. This allows our customers to make quick, data-driven decisions on their designs. As I mentioned, it's not just the power that needs to change. The ripple effect changes the actual design of the vehicle, structural, noise, and potential effects on durability. Testing, measuring, and analyzing these critical safety concerns are at the core of what we do for our customers. We are known to be the highest level of precision in reliability and efficiency. These solutions encompass our entire product suite, from high-precision measurement through our suite of sensors, the data capture at those sensors, the instant insights they can provide at the point of test, as well as the fatigue durability and reliability software. More and more, our customers are realizing that there's additional value for them to engage in one complete solution with a single trusted partner. In that way, we're growing in the depth and breadth with these current customers. One of the significant areas that the OEMs discovered they needed help with was that move from mechanical to mechanical with electrical design. A lot of the organizations discovered they just had a serious knowledge gap in this area. That affected their speed and design and development. They turned to us with our deep knowledge across mechanical, electrical, and structural measurement test domains. We're able to support these customers by bridging these knowledge gaps, collaborating with them quickly, providing a system that integrates that hardware and software into one easy-to-use solution. As you've been hearing, this transition to electric power is a significant challenge for OEMs, but it's a huge opportunity for us. Our serviceable addressable market is estimated to be GBP 1.3 billion. Because of our history of partnering with vehicle manufacturers, we have a front row seat that allows us to better understand these obstacles, then use our experience, and design to get the products for the transition of the world to a cleaner place. I'd like to now pass this over to Tanneke Reijnders, who's gonna talk about Spectris making a world a healthier place. Thanks. Thank you, Kimberly. One more. Apologies, but that's fine. You should turn it a little bit the other way around. Yeah. Okay. Spectris Scientific is a gem in the pharma ecosystem. We help our customers discover drugs that save and improve lives. I'm incredibly proud to be part of that mission, and here's why. Our health is precious. Our enjoyment of the world begins with our health and well-being, and that of our loved ones. Precision measurement is essential in enabling innovation in medical science. Developing new treatments that have the power to advance our world, save lives, and improve the quality of life of billions of people. At Spectris, we are innovating for a healthier world. Our measurements and insights provide our customers with the absolute confidence to develop the drugs and therapies of tomorrow across the pharmaceutical workflow from molecule to medicine, in drug discovery, drug development, clinical scale-up, and manufacturing. Making sure the entire process happens in a clinically clean environment. Innovation for a healthier world. My name is Tanneke Reijnders. I'm Vice President, Corporate and Business Development at Malvern Panalytical. My role includes shaping the strategy for the business, managing of our product portfolio, M&A, marketing, and communications. Ultimately, my job is to develop a solution portfolio to ensure it is always relevant to supporting our customer work. In life sciences, Spectris plays a key role in three end markets: small molecule, biologics, and aseptic manufacturing. In total, the served market is a GBP 1.1 billion market for instruments and related services, in which we have approximately 16% share of sales. Starting with the small molecule market. This is the market where drugs are made of chemical components. It has been the cornerstone of drug development for the past century, starting with the aspirin. The most widely marketed pharmaceuticals today are based on small molecules. It is a well-established market that continues to grow, in particular, thanks to generic drugs. Malvern Panalytical is the market leader in stability analysis with our Mastersizer and Zetasizer platforms, and recognized for its precision measurement, domain expertise, and analytical software. We are also expanding our strong presence in affinity and structure analysis. Because we are committed to continuing to invest in our products and are recognized for our domain expertise, we are confident we will continue to outperform the market. Now to biologics. This is where a drug product is manufactured or extracted from biological sources. You know, there is a significant focus on this sector currently, and it's growing fast, around 8% at market level. With also very attractive niches like the vaccine and gene therapy expanding up to 15%. In biologics, we play a key role in stability and affinity analysis, including during the pandemic, where our solutions have been instrumental in the development of the COVID-19 vaccines. In fact, when the news of the first vaccine was announced in The Wall Street Journal, it was our Zetasizer that they featured in the picture. There it was in a prominent position in the lab of a big pharma company that launches the vaccine. The mRNA methodology is now widely accepted and is being applied to develop drugs for a number of diseases, not just COVID-19. You can see how this is a truly high growth segment. We continue to organically invest in biologics, including through acquisitions such as our Creoptix transaction earlier this year. We go to aseptic and sterile manufacturing. That is key to manufacturing safe medicine. It is a highly regulated environment where domain expertise is vital. Particle Measuring Systems is the market leader because of its technical excellence, its regulatory expertise, and its breadth of solutions. Our recently launched solutions are outperforming the market and confirming PMS strength. In all these markets, Spectris Scientific serves the big pharma companies, but also works with the smaller biotech contract research organizations and academia, drug discovery, and development. Now how does the pharmaceutical workflow work from molecule to medicine? As you can see on the chart, it starts with thousands of possible molecules that are screened in order to create one marketed drug. Consequently, the cost to create a drug is high. The current timeframe is 10-15 years, and only 2 out of 10 medicines pay back R&D costs. Improving screening through discovery and formulation can offer significant opportunity for efficiency gains. That is where Malvern Panalytical comes in. We work closely with our customers, providing the best instruments to accelerate discovery of viable molecules. Next in the workflow is then product and process development. This is about creating stable drugs for the delivery into the body and designing a process that can produce the substance at scale. Because we are leaders in stability, we are embedded in the customer workflows, and that generates sustainable revenue streams. Being a partner of our customers tool set at this stage ensures the business in future years when drug manufacturing scales up. In a highly regulated environment, pharma companies are very reluctant to switch providers. If you're in, you're in for the long run. The final phase is scale up to commercial manufacturing. Aseptic manufacturing is crucial to ensure product safety, and Particle Measuring Systems is delivering the best instruments and the best domain knowledge to ensure customer manufacturing is ultra clean, and that's why we have a large market share. Now, Dr. Paul Kippax will explain in more detail how we work with our customers in a specific case study in the vaccines and gene therapy segment. Thank you very much, Tanneke. That's good. Just twist slightly that way. That's it. That's good. Adjusting the tech again. My name is, Dr. Paul Kippax. I am the marketing director for pharmaceutical and food at Malvern Panalytical. My role is to understand the evolving requirements of the life sciences sector, ensuring our development, collaboration, and marketing activities are focused towards supporting our customers' workflows. Now, as you've heard from Tanneke, the market for vaccines and cell and gene therapies is rapidly expanding at 15%. Why is that important to Malvern Panalytical? Well, the market is exploding in that way because of COVID-19. The technology used to create the vaccines is now widely used and accepted. This includes the use of lipid nanoparticle formulations. Now, you may have heard of lipid nanoparticles as they were all over the news during the pandemic. These small particles are the packages that were used to deliver the COVID vaccine drug substance safely into our bodies. They're not just used for COVID. They are an enabling technology across a range of drug product types, holding the possibility of protecting us from or even curing diseases such as HIV AIDS, diabetes, cystic fibrosis, and malaria. This is where Malvern Panalytical and PMS get involved. The solutions and understanding we have developed for other small and large molecule markets help address critical challenges in the development and manufacture of these new treatments. That puts our engineers and application scientists at the cutting edge of the science enabling the design and launch of these critical therapies. What do our customers need to know, and how is it that we can help them? Well, first, they need to ensure that the drug substance can be delivered effectively to the right cells in our bodies. Our OMNISEC and MicroCal solutions give researchers insight into the structure and stability of the lipid nanoparticle packages and their contents. Our scientists also determine if there's an effective therapeutic response. This all then locks in specifications critical to the next phases in development. Our instruments and application scientists then get involved in guiding the development of effective drug formulations. We ensure these formulations are stable during storage and administration to the patient. We confirm they retain the ability to treat the disease effectively, and we guide the development of processes which ensure the drug product can be effectively manufactured at scale. The same analytical solutions are applied to ensure reproducible aseptic manufacturing. We confirm the structure and stability of each batch. We also aid detection and control of contaminants, such as the infamous black specks that were reported in some COVID vaccines. This is critical to ensure that each dose is safe as well as effective. What is it that makes our offer compelling within this market? Well, the requirements for development of these therapies are not well resolved. There is not yet a well-trodden path to getting it right. Malvern Panalytical scientists are cited by leading companies as being ahead of the pack in defining the analytical science which informs the development of these critical medicines. Our products are used across the workflow, setting critical quality attributes and locking these in to ensure the safe and efficient manufacture of effective medicines. Let's hear from our customers and what they say about our technologies and the expertise that aids them in developing the drug products and manufacturing processes of the future. Leukocare is one of the leading service providers in the field of biopharmaceutical formulation development. We are applying our services to a broad variety of modalities, including peptides, proteins, ATMPs, vaccines, and bio-functionalized devices. The partnership with Malvern Panalytical allowed us to combine our pioneering expertise in biopharmaceutical formulation development with their extensive analytical know-how, for example, in the field of biophysical methods such as differential scanning calorimetry or light scattering. We really took advantage of a very effective way of communication. There was always high accessibility of the experts at Malvern Panalytical with our experts at Leukocare, sharing insights into the most recent analytical results, and this was a very fruitful collaboration in that regard. Moving forward, we are aiming to continue our growth story by innovation, internationalization, and integration of new services. Particle Works designs and builds game-changing particle generation platforms for micro and nanoparticles. We're building on 20 years of experience from our sister brand, Dolomite Microfluidics, and producing the right tools for our customers to allow them to expedite the process of transitioning from high-throughput screening all the way through to scale for manufacture. One of the key objectives of our team is to ensure that we are characterizing materials coming out of our systems, both during system testing and also after system release to generate user content that shows the capabilities of our systems. It's really important to us that we have the best equipment in our laboratories to obtain that data, and so we use the Zetasizer Ultra to gather data on size, polydispersity, and make sure that we're demonstrating the reliability and robustness of our systems. As part of our workflow, we therefore enjoy using the Zetasizer Ultra because the data analysis we get from it allows us to make confident decisions to move forward with our research. You've now heard how Spectris Scientific strives to make the world cleaner and healthier. We also aim to make the world more productive, bringing the key technologies required to answer critical challenges and sustainability to reality faster. Over to Thomas now who will talk about how at Spectris Dynamics we are focused on being more productive. That's good. That's fine. Okay. Excellent. Thanks, Paul. Yeah, more productive. This is what every company has to be while developing innovative products. My name is Thomas Lippok. I'm the Chief Strategy Officer here at HBK, looking after our corporate strategy, market insights, and inorganic growth. I've been with Spectris in various functions for over 20 years, and I've worked in that time with many excellent customers from well-known companies all around the world. Today, I also have the pleasure to join my colleagues on stage to talk about how we help the world to become more productive. Let's also start with a video. To meet the complex challenges of today and deliver the sustainable future of tomorrow, innovation waves are shortening, and the responsible use of scarce resources is ever more pressing as we seek to go further, faster, better, and reduce the impact on the planet. At Spectris, we are innovating for a more productive world. We enable our customers to work smarter, quicker, and more efficiently, reducing time to market, improving processes, and becoming more sustainable. We accelerate product development, bridging the gap between virtual and physical worlds, improving decision-making, saving time, reducing cost and environmental impact, enhancing product quality and reliability. We ensure processes and critical assets work at their optimum performance, using precision measurements to increase yields and reduce waste, enabling the highest levels of productivity in the cleanest environments. We provide insights for our customers on the materials they use, making extraction safer, more efficient, and more environmentally friendly, making research and development faster and more accurate, optimizing quality control to increase yield and reduce costs. Innovation for a more productive world. Yeah, great examples, I think. Now, let's talk specifically about the automotive industry. Let me show you how our virtual test business, as mentioned by Ben, is helping that industry to become more productive in their innovation process. All of you are aware that they are going through a major disruption. Automotive companies face not a single but multiple challenges that are often described with the acronym CASE. Connected, cars talking to other cars. Autonomous, self-driving vehicles. Shared, instead of owning. And electric, eliminating internal combustion engines. The automotive industry cannot win those challenges without radically changing the way it develops cars. Why is that? On that subject, there are four things I wanna share. Firstly, the traditional approach is way too slow and too costly. Up to four years to develop a new car is simply too long. The market demands new models every second year. Also, the new technologies that we all enjoy in our cars require a more integrated approach. All subsystems are more interconnected with each other than in the past. In addition, developing autonomous cars requires billions of kilometers to be driven to prove that autonomous driving is safe, and this cannot be achieved by simply driving physical prototypes on public roads. Finally, if a change needs to be done in the late part of the design cycle, it can be massively expensive. How do we overcome these challenges? On the left-hand side of this slide, you see the traditional way cars have been developed in the last 40 years. It's called the V-cycle. It starts from the concept phase, then moves to high-level design, defining individual components, testing these, building a vehicle for testing and validation, and then signing off the whole design. A good process for sure, but very time-consuming. On the right-hand side of the slide, you see how we help customers to change the shape of the V-cycle. They can now move earlier from high-level design directly to validation and testing and experiencing their new products much earlier. This significantly reduces the total development time. To accomplish all this, automotive companies must embrace an integrated approach, relying on simulation, driving simulators, and Hardware-in-the-Loop, and we have the unique capabilities to provide such an end-to-end solution. Let me take you through this approach, starting with simulation. Simulation has been used in vehicle development for more than 20 years, and nowadays it has reached a very high level of accuracy. With simulation, our customers can explore millions of solutions, consider different needs coming from different disciplines, and above all, identify corner cases that need further attention. We provide the real-time computing environment that is key to many of these tasks. Next, automotive engineers need driving experience to make sure that their vehicle matches the company DNA and results in high customer acceptance. Driving simulators allow us to experience the simulation models early in the design cycle when physical prototypes are just not yet available, shortening the V-cycle. The combination of simulation models and driving simulators does really three important things. It speeds up the development, it reduces the need for physical prototypes, and drives innovation. What does it really do for our customers? Here are two examples. A few weeks ago, the Ford simulator chief engineer stated that in one week at the simulator, his team can perform the same amount of work that would require one month at the proving ground. Volvo managed to save EUR 10 million by using their driving simulator to select the right tires on a new vehicle platform. Finally, instead of waiting for all hardware components to become available to test them on a physical prototype, each and every component can be tested on the driving simulator. Through hardware-in-the-loop techniques, those components work in the simulators as if they were on a real car. This allows faster evaluation of autonomous technology and supplier subsystems and easier integration of control strategies. This is where we bridge the gap between physical and virtual testing. A great example of this is our customer, Lamborghini. They are testing physical components like active dampers in a virtual environment before they test them in a car to gain driver experience, optimize design, and significantly accelerate their innovation. To summarize, we accelerate product development by bridging the gap between testing and simulation, and not only do we bridge the gap, but we eliminate it. Subjective feeling is provided earlier, therefore development time becomes shorter. Potential issues are discovered earlier and resolved earlier. There's no need to wait for physical prototypes, and customers can reduce the number of physical prototypes and save cost. Finally, we help customers to be more sustainable, as Ben also has explained earlier, saving CO2 and waste. Spectris Dynamics virtual test helps automotive industry to win the R&D challenge, and we do it by allowing customers to change the paradigm. We allow them to drive their designs virtually before they have built them. This approach speeds up their design by a factor of 4, generates 3 times less emissions, and saves 50% of total development time. Let me finish with a video in which Aston Martin's engineers explain very well how we have helped them to shorten their development cycle. We are trying to progressively move from a traditional engineering approach in the automotive industry to a more virtual environment and try to do as much work as possible within the simulation. In offline simulation work, you don't have that driver feedback. The next step is to bring the driver and the human interface, so then the simulator becomes very useful into further developing control systems to make them more natural, and that, at the end of the day, has a big influence both in the final product and the quality of the product. What we've identified is that by the use of virtual tools and simulation, the expenditure profile is lower. That's because any error states that you find, you find them at the very beginning of the program before you are committed to any tooling or you are committed to any production part. Yeah, what Aston Martin did is pretty remarkable, but it is not an exception. All automotive companies worldwide are becoming more productive with new ways to develop cars based on simulation, driving simulators, and hardware-in-the-loop. With that, we conclude the session about putting our cleaner, healthier, and more productive purpose a bit more to life. I think we have been able to show you what customer value we create by making the invisible visible and by empowering the innovators. With that, I'll hand over to Derek. Thank you, Thomas. Thank you to all the other colleagues as well for bringing the business alive. Just a little bit higher that'd be perfect. Great, thank you. We haven't yet found a way to make sure we're all exactly the same height, so this is a little less effective. This one. Lovely. Thank you very much. Good afternoon, everyone. I'm Derek Harding. I'm the Group Finance Director here at Spectris. I'm gonna start actually with a slide that you've already seen today because for me it demonstrates our clear focus on the most important drivers of value. The columns and the targets you see on this slide represent a new performance framework for Spectris, and achievement of these objectives will deliver material value creation for the benefits of all stakeholders. Rebecca has spoken in detail already this afternoon about our ESG initiatives, so I will take you through our plans as they relate to organic growth, margin expansion, and capital allocation. COVID in 2020 makes it difficult to see a clear trend on our like-for-like growth over the past four years. However, with the portfolio and strategy that we have today, we are confident that the group is now structured to deliver more consistent compound growth over the cycle than has been achieved in the past. Like-for-like growth in 2021 was 9.7%, and this morning we announced year-to-date growth in 2022 of 10.5%. Our new stated objective is to achieve organic growth of 6%-7% through the cycle. Now, this improved growth trajectory is a result of specific actions taken over the past three years, which are now delivering. We have transformed the Spectris you see today from the one from four years ago. As you all know, we've significantly reshaped the group, and we now serve markets which predominantly display structural growth characteristics, which I'll expand upon in a moment. Today, as a group, we're energized and focused to drive organic growth as our first priority. Our sales force has been trained in advanced selling techniques and provided with better tools such as salesforce.com, which will make them successful. We've increased the R&D effectiveness of new product development to drive growth and market share gains, and all of this has resulted in strong demand. We have seen a book-to-bill ratio above one for the past 25 months. We anticipate this to continue for the remainder of the year. Now in a room full of analysts and investors, I know it's dangerous to make statements around market growth, and I will accept that each of you have your own views on the markets we serve. Furthermore, given the macro uncertainties that we're all facing, none of us really know what the markets will do and react, certainly over the next 12-18 months. Nevertheless, I think it is helpful for you to see our base assumptions. This slide details the percentage of sales contributed by each of the key markets that we now serve and our estimated medium-term growth rates. The key takeaway that I want you to have is over the past 3 years, we have focused our activities organically and through portfolio management on the most attractive end markets, supported by structural sustainable growth trends where we have differentiated positions and a strong market share opportunity. Since the last Capital Markets Day, we've improved our approach to R&D, and it continues to be a key driver for our growth over the coming years. In 2018, new product introductions represented 43% of the total spend. By the end of 2021, this has increased to 59%. In 2022, we expect GBP 89 million of incremental revenue from brand-new products launched over the past 5 years, and GBP 237 million of revenue from products that have either been improved or enhanced over the same period. Going forward, we expect R&D spend to be at a higher level of 8% of sales, compared to 6% in the past. We have introduced today our Vitality Index. Now, this measures current year revenue from products released over the previous five years, and it's currently around 25%. We expect this to increase over the next five years to around a third of sales. All of our R&D investments are expected to return an IRR of at least 15%. In 2020, the group delivered an adjusted operating margin of 15.5%, and at our last Capital Markets Day, we stated the medium target of 18%. We continue to make progress on our cost base, and we can now see a path to 18% and beyond, such that today we've announced a new target of 20%. Now, when you consider the increase in R&D spend as a percentage of sales that I mentioned on the previous slide, you can see that this target delivers even more progress on our underlying cost base than the reported numbers suggest. Taking Spectris to a 20% operating margin requires a clear plan and a culture of continuous improvement. All of the businesses in the group know what is expected of them. Each has a tailored and specific plan to reduce their overheads as a percentage of sales in order to achieve these targets. In other words, we are confident of achieving 20% without relying on our gross margins. We consider gross margin improvement to be upside to this target. These plans can be summarized into four key areas. First is operating leverage. As we all know, the group enjoys a healthy gross margin, and while it has been challenged by inflation and supply chain issues in recent months, we see no reason why the gross margin cannot be maintained and indeed improved over time. This means that we retain a significant amount of gross profit for every incremental GBP 1 of revenue. As we previously stated and mentioned a number of times today, we expect to grow by 6-7 times over the cycle, which will drive a very healthy drop-through. Next is the operating model. We will continue to run a lean head office with most of the capability within the divisions, and therefore closer to the customer. We find this reduces overhead because activities are always framed with the customer in mind. Going forward, we will publish the cost of running the PLC as a separate segmental cost, thus enabling a clearer understanding of the true profitability of each division on a standalone basis. Spectris Business System will continue to provide the foundation for our continuous improvement mindset. Over the last three years, 600 of our key leaders have received SBS training and now apply the tools and processes to their daily ways of working. Remember, the main objective of SBS is to drive efficiency so we can grow the business without needing to grow the cost base, thus underpinning the operating leverage with real clear, tangible actions. Finally, the group is undertaking a significant program of process redesign and improvement, enabled by moving to the latest SAP cloud-based systems. We believe this program alone will deliver significant benefits resulting in improved margins of around 150 basis points even in a zero growth environment. This slide sets out our approach to capital allocation. It has not changed materially since 2019. We will maintain a sustainable balance sheet, which for us means leverage between 1-2x EBITDA through the cycle. Certain circumstances, we would be prepared to borrow more than 2x EBITDA for specific M&A, but only if there was a clear path and a certain path back to delever below that level within a short period of time. The chart then sets out four key priorities for deploying our capital to drive shareholder value, which is entirely consistent with our strategy. First of all, we'll fund organic growth. This is our first priority, and the team has presented today a wide range of exciting opportunities to underpin this. Secondly, we will maintain a progressive dividend. We are very proud of Spectris's long track record of increasing dividend every year since 1991, and we are committed to continuing that track record. A third priority is M&A growth. Now, this is an important component of the group strategy, given the opportunity that we have to build our share in our markets, expand our footprint into adjacent product areas, and build bigger and stronger relationships with our customers. We are confident that a disciplined approach to inorganic growth can yield significant value, not just through cost synergies, but critically through revenue synergies. In a moment, I'll talk you through the rigorous assessment that we apply to all of our investment decisions. Finally, if the group has excess cash after executing on the use of funds that I've just described, then we will return this cash to shareholders through a share buyback, a special dividend, or on another appropriate mechanism. We have consistently followed this framework for the past three years. When considering our deployment of capital, particularly for growth, we have a rigorous appraisal process on both the strategic logic and on the very specific financial metrics. Firstly, we consider how the investment or acquisition fits into our growth strategy, be that product expansion or moving into an adjacent technology or market. It's critical that we find opportunities where there is strong technological fit that could be software and services, adjacent products or activities that increase the support for our customers. We will consider bolt-on acquisitions as well as continuing to assess larger strategic M&A opportunities. In all cases, we will only proceed where we believe that the combination creates a strong opportunity for synergies. Equally, we place a significant importance on key personnel retention and cultural fit, and this supports our view that we are a values-based business, and having the right people is at the heart of our success. Secondly, it's essential that any investment meets stringent and consistent financial metrics. We are focused on ensuring that any investment will enhance our organic growth potential over the medium term, support and enhance margins, and generate attractive cash flows. We consider a range of financial measures such as IRR, NPV, and earnings accretion, which help us inform the relative performance of any investment opportunity. As a minimum, all of our investments and acquisitions require the returns to exceed our weighted average cost of capital by the third full year of ownership. 2019, I set out a new measure for the return on gross capital employed, and I stated that improving this would be a key area of focus for the team. The ROGCE was impacted by COVID in 2020, but we're pleased with the underlying progress that we've made. It's a measure, an average measure over time, and therefore, following the completion of the disposal program set out in 2019, we expect further improvement in 2022. Going forward, as we focus primarily on organic growth and margin expansion, it is our intention to maintain a mid-teens return on gross capital employed, which is well in excess of our cost of capital. To aid comparability with other companies, we have also reintroduced the more traditional ROCE measure to this chart, which you can also see is improving. Before I finish today, I wanted to take the opportunity to share the new segmental presentation of the group with you. The numbers here show the restated 2021 performance with Omega Engineering removed. The presentation clearly shows the quality of the Spectris Scientific business with revenue of GBP half a billion and operating margins in excess of 21%. It also reminds us of the opportunity to improve the profitability of the Dynamics business as set out earlier by Ben. For the first time, you can now see the circa GBP 20 million per annum of group costs, which were previously allocated to the platforms and which will be reported separately going forward. This is how we are going to report our 2022 year end and enable you to prepare your models in advance and think about the full year results. We will shortly provide a full analysis of the segmental for FY 2021 and H1 2022 on this basis, and we'll put that on our website. As you've heard today, Spectris is a more focused, improved business compared to four years ago. We have the right strategy, we have the right culture, and we have the right people to go after organic growth of 6%-7% over the cycle and to expand our margin to 20%. We expect to maintain our strong cash conversion and our return on invested capital. The business is energized today, and it's focused on delivering this strategy for sustainable growth. With that, we bring the end to the presentation stage. I'm gonna invite Ben and Mark to the stage to answer questions. Those of you that are watching online, you can also ask a question by clicking on the link below the presentation. I hope with the marvels of modern technology, we are also gonna be able to bring our chief executive into the room, who is currently self-isolating at home. There he is. Excellent. Who's currently self-isolating at home. Welcome, Andrew. Can you hear us, Andrew? I can. You can, and we can hear you. Right now. For the people. Hold on a minute, Andy. For the people who are in the room and online and for Andrew as well, you need to ask the question into a microphone. Otherwise, Andrew won't be able to hear it. Microphones are roaming around. Andy has his hand up, so Siobhán will come to you. Normally, Andrew would facilitate the Q&A. Given that he is remotely, I will facilitate it, but I'll hand questions off either to myself or Andrew or anybody else in that process. Andy. Thanks, Derek, and thanks everyone. Three questions, please. Can you tell us what time period the market growth is that you calculated 6%-7%? Just trying to figure out how you've actually calculated your market growth. If we take the existing or to be continued Spectris businesses, what was the average growth rate for that over 10 years? Thirdly, Servomex and Red Lion clearly are non-core now. Are we looking to dispose of them or improve, keep? What's the plan for those two businesses? Thank you. Okay. Let me take the first one, and I'll hand the second one over to Andrew. Our planning period for this entire presentation, as we talked through the cycle, is out till 2027. Let's say if you get to 2027 and you look back and we've delivered 6%-7% on average through that period, then that's what we're talking about. When you look at the period of growth for the businesses that we now have, it's lower than that. I'm not gonna give you a specific range because there are a number of moving parts due to M&A and a constant currency growth. The point is that the rate of vitality, the rate of new product development, and the focus that we now have on these growth markets is materially different. Although some of the businesses are the same in structure, what they do and how they do it is completely different. With respect to Red Lion and Servomex, I'll hand you over to Andrew. Yeah. Thank you, Derek, and thank you, Andy, for your question. Look, I mean, for Red Lion and Servomex, they are both high-quality, niche businesses that, you know, have got very strong positions with their customers in their end markets. We have continued to invest in those businesses over the past 3-4 years. We've refreshed the product portfolio at Red Lion and are investing likewise at Servomex. They're both high-quality businesses. You know, as we've said previously regarding any of our businesses, as we went through our previous portfolio, you know, repositioning, we wouldn't give out any timescales or name any of the businesses, and that's still our stance. You know, and I think what I would say is that we have been very disciplined around delivering shareholder value from the assets that we have in the portfolio, both in terms of the business we sold, but equally, you know, as it relates to Omega, for instance. You know, identifying that we, you know, we could actually deliver greater shareholder value through selling Omega rather than retaining it within the business. You know, I think, you know, we are very disciplined around looking at our assets, you know, both in terms of, you know, delivering direct shareholder value, but equally, if we think that there's an opportunity to translate some of that asset value into other opportunities. Thank you. We'll come to Jonathan. Great. Thank you. It's Andre from Credit Suisse. I'll start with a question on margins, and clearly, ERP revamp is a key part there. Could you give us a timeline on implementation of that? Then, on the remainder of that targeted 150 basis points improvement, could you help us with allocating it between those buckets of operational gearing, lean, and SBS? Yeah. I have a couple more, please. Let me take both of those. As I said to Andy, the time period of our planning through the cycle is out till 2027. As you can see, the target is 20%+ by then. I'm not gonna break down every individual year because as we all know, we operate in uncertain times, and there's bound to be years where it goes better and years where it doesn't go quite so well in terms of the journey, but that's the timeframe to 2027. The 150 basis points, to be clear, relates to the SAP implementation only. Of those four buckets, there's further benefit that comes from operational leverage, the lead center and SBS, not giving specific targets on those. They contribute to the overall. The GBP 150 specifically relates to the SAP implementation, which should be fully complete and operational by 2025. Great. Thank you. If I may just, on the Vitality Index, thank you for the disclosure. Could you tell us where it's come from? Where was it in 2018? No, we can't because we didn't measure it. In simple terms, we have some idea of where it was, but it's not as accurately measured. I think I've spoken to a number of you before, you've asked about Vitality Index. We wanted to get to a point where we had a very clear understanding of the definition, very clear understanding of how to track the costs and the benefits before we started disclosing it. I have a number, but to be honest, it's not very comparable. The key is it's 25% now, and we expect it will go to a third for the business. Thank you. The final one on PMS and Malvern, are those going to be now fully integrated businesses, run as one? Let me hand that question over to Mark. For Spectris Scientific, there is no plan to integrate the businesses. I think from a combination perspective, it's really looking at the equity story, but the precision measurement, the domain expertise, the analytical software, we both have very similar profiles of how we shape our businesses. The other key point is we play strongly in two end markets together, life sciences and semiconductors. Looking at how we can leverage off of each other to increase our position in both of those end markets. Today, it's not a synergy play. It's really figuring out how we can leverage off of each other to grow faster. Jonathan, and then Mark. Jonathan, do you still have a question? Yep. Okay. Emma. Hi, it's Jonathan from Barclays. Just coming back to the other. I understand your point and your take that those businesses aren't gonna be or may not be in the portfolio in the long term, but obviously they are there in the short term. Obviously, the margin at 13% is a drag to your overall target. Where do you think you can get the margins for those businesses? Can they be sort of a high teens type margin or are they gonna sort of stay around sort of 13%, maybe 15%? Look, I mean, I'll answer first and then Andrew may build on it. Just to be clear, the disclosure requirements of reported segments and non-reported segments makes it difficult. You end up with a word like other, but we wanna be absolutely crystal clear that Red Lion and Servomex are not viewed in the way that we run the business as other. That's perhaps represented by the fact we see real opportunity to continue to improve the margins in those businesses. You know, whether they will ultimately get back to the levels that, say, Scientific can get to or to Dynamics will get to, you know, perhaps remains to be seen. There's no reason why they can't, but they are, you're right, lower at the moment, and they're under, you know. They've got very clear plans and understanding where they need to get to. We'll get them to mid-teens, and then we'll come back to you. Okay, great. Just a second question, just in terms of your large scale strategic M&A. I sort of take on board your comments about margin there. If the acquisition is margin dilutive, at least in the short term, would you still consider it? Well, let me hand that one to Andrew to kind of talk about large scale M&A and M&A in general, and then I can answer the specific margin point. Yeah. Jonathan, I mean, it's a great question. I mean, you know, we clearly look at, you know, the M&A landscape, as we said, right from sort of early stage businesses through bolt-ons to larger scale potential acquisitions. We will only do it where we see we can deliver, you know, strong financial returns. You know, certainly in the current markets and how they have been over the last sort of 2-3 years in terms of multiples that's been needed to be paid for acquisitions, then driving strong synergies, both cost and revenue opportunities, has been a key part of everything we've looked at. You know, would we consider businesses that are lower margin than the group? Yes. We'd only do that if we felt that we could deliver strong growth and strong margin potential out of them, you know, over a reasonable time period. That then goes back to the sort of capital allocation framework that Derek took you through. Yeah, I have nothing to add to that. Could I just- Oh, you're gonna sneak in one more. Okay. Yeah. Can I just. Can you sneak in one more, Mark? Go on then. All right. Obviously, your favorite sub-subject, but obviously you talk about healthy levels of drop-through. On 6%-7% organic growth, what kind of number should we take at that level? The key today and it comes back to timing. The key for us is to, through the cycle, talk about the top line growth and the margins, and you'll have to figure out how you're gonna build your model accordingly, Jonathan, to that effect. Sort of a follow-up from that really. These are all three cycle targets, so I guess the question is how cyclical the business might be in its new form. Yeah. Obviously, COVID has distorted normal trends. That was a non-normal slowdown. If you look back over history, more normal demand-driven weak periods of weakness, how does the business behave and what kind of visibility do you get into 2023? Whoa. Let me have a first go, and then again, I'll hand over to Andrew. I mean, I think, to be clear, what we are not saying is that you should take your model and put 6% or 7% in next year necessarily, because as we all understand, the world is uncertain. I think, you know, the timing of the Capital Markets Day and the fact that we're standing here with so much uncertainty in the world really makes that quite difficult. What we are saying is when you look through that uncertainty, the markets that we now face are very different. Again, looking back at Spectris in the past, in fact, I'd encourage you all to just take your Spectris in the past models, and just throw them out because the business is an entirely different business today than the one it was four years ago. Look at the markets that we're now facing into. We've given you the market shares of those markets. Take a view on how cyclical they are, and then that's what you should read across for the business. I think going back three, four years for any of the businesses, you know, we weren't in virtual test in Dynamics. There was a huge focus shift from not being in life sciences and pharma in Scientific when Andrew joined the group to where we are today. There's so many differences that it's actually really quite difficult to go back and try and extrapolate. Andrew? Yes. I mean, I'll just emphasize your point, Derek, around, you know, the through-cycle comment you made. I think, you know, the other sort of message that we're really trying to get across today is that, you know, our business is being helped significantly by a number of micro trends. It's going on despite, you know, the broader macro. While the macro will clearly, you know, shape, you know, the overall volume, over the coming years and, you know, we'll see it, you know, move up and down a bit. You know, those micro trends around cleaner, healthier, more productive that we talked about around, you know, the clean energy transition, transformation mobility, electrification, all the way through to, you know, emissions control, and then obviously our healthier agenda. You know, we significantly increased our exposure to sort of pharma and life sciences as a consequence of both portfolio restructuring, but also our own internal strategic growth initiatives that we've been driving. You know, as I said in my intro video, going back to 2019, we were very clear where we saw our end markets growing the most strongly and which sub-segments should we focus on, and where we could build leading differentiated positions. That's where we've been placing our investment. That gives us, you know, the confidence to come out today and say, "Look, you know, we believe we can grow 6%-7% through cycle." As Derek says, you know, in the current macro environment, you know, that's obviously quite bullish. As a consequence of you know the work that we've done, you know the reshaping of the portfolio, the investment in the business, the increase in R&D, and making sure that we are really you know looking and driving against those you know sustainability themes, driving as the most attractive parts of our end market where we can create a leading position, that's what gives us the confidence. If you look at you know our you know the market growth rates I spoke about in my intro, you've got sort of scientific growing 6%-7%, dynamics growing 5%-6%. I mean, that's higher than the sort of aggregate markets because we have, you know, within those growth rates, we've basically added up, you know, where we see, you know, the end market segments we're really focused on. The market itself is growing stronger as well, and we aim to outperform that by at least 100 basis points by taking share. Thank you. One slightly unrelated one. You talked about M&A valuations over the last couple of years. Are you yet seeing any moderation in seller expectations around valuation? In all honesty, not yet. I mean, it comes really down to the nature of the seller. A lot of businesses that are high quality, and they know they're high quality, will hold out for high quality. I think where you might have an ownership structure that means that it's coming under pressure for debt or there's a reason for selling, then that might change. You're not seeing, you know, a significant turn yet. Doesn't say it won't come, but you're not seeing it in great materiality yet. Thank you. Tom Frame from Shore Capital. Tom. Following on from other questions on the operating margin, I know you've quantified the SAP implementation. Have you quantified any other areas of the operating margin uplift and how much they may drive it? How much is M&A a key part of driving the margin expansion through disposals and future acquisitions? And how much scope is there still for self-help? This has been an area of focus for the group for quite a number of years now. Would we probably be right in assuming that the scope for self-help may be a bit limited compared to what it was maybe 5-7 years ago? Let me go through those inputs. The opportunity for self-help is, I mean, in theory gonna be less than it was for five to six years ago because over the last four years we've been transforming the business as demonstrated today. That doesn't mean there isn't still lots of opportunity to go after. I'll come to Ben in a minute perhaps to just sort of elaborate on the nature of the Spectris Business System and the fact that you can continually find opportunities through that. In terms of the margin, no, we haven't and we're not going to kind of give granular elements to each piece of it because, as I said, there's an element of uncertainty in terms of how it will land and when it will land. You know, when you simply look at the growth that we're putting through, the operating leverage, the fact that we're holding, you know, the head office is an incredibly lean place today compared to what it was in the past, and the SBS which Ben's gonna talk about in a moment, there is a lot of opportunity for us still to go for. I think the danger of sort of trying to do it on a granular basis is that events and life can get in the way of that, and we spend a lot of time talking about minor issues on any period of time rather than kind of looking back at the big picture. I think we've demonstrated since 2018, even with COVID, that the profitability of the business is improving. Your final question around M&A and disposals, you know, we think we can improve the margin on a standalone basis. Clearly, if you sell a business that has a lower margin than the group average, then the margins will go up. If you buy a business where it's lower, it'll go down. That comes back to a little bit of timing. As Andrew said, we'd only buy a business where we thought we could drive real value, and we'd only sell a business if we didn't think we were the best owner of it. There isn't a sort of M&A trick in the math. This is a kind of an organic target that we think we can get to, in and of itself. Ben, just a little bit on, yeah. Yeah, sure. Thank you, and thanks for the question, Tom. I'd self-help or continuous improvement culture, I think, you know, in my experience, I've never been in a business that cannot continuously improve. What we think about in Spectris is by using the lean tools, creating the right continuous improvement culture, we will continuously improve the business through the cycle. We've seen it across both Spectris Scientific and Spectris Dynamics to this point, and we're building the organizational capability to really accelerate our deployment of SBS and realize future value through the cycle, as I said. Lots of great examples on products, in manufacturing and processes across the commercial business line where we've seen business improvement and realized the benefits so that it drops through to the bottom line. feel like a bit like an auctioneer, actually. I've got a bid from Andy, and then from George, if you wanna come to George. Andy Gunn, you had a follow-up, I think, on that specific point, and then George. These are the questions for the operations guys. Two for Mark, one for Ben. How do we think your businesses, so Mark, is positioned regionally for the semiconductor market looking out over 10 years? Are you in the right regions with the right customers to benefit or do you have to shift? I think I know the answer, but I'd like to hear it from you, from the horse's mouth, as it were. We've had a massive benefit from COVID for your business. Is there any risk that the capital expenditure in your key pharmaceutical life science markets actually comes under pressure for a year or two as these budgets unwind before we then go back into more structural growth on the vaccines? For Ben, we've talked a lot about simulation software driver-in-the-loop, all this kinda good stuff for automotive. If we cut the business in a slightly different direction, is your business fundamentally now tied to automotive, I guess, research? Or do we see the same trends in machine building, aerospace? Are we growing at the same rates in those end markets rather than just automotive? Because we've talked a lot about automotive, but not about other end markets. Let's go, Mark, first and then. Yeah, I think it's a great question. As far as the regional focus on semiconductors, we are well positioned in all regions where semiconductors are today and where they're moving to, whether it's on the aseptic manufacturing, okay, the work that Particle Measuring Systems does, we sit in all semiconductor companies today. Same with on the Malvern Panalytical side, where we have instruments that are used in whether it's the material side or the wafer side in production. Wherever the customer is today is where we're at, and where they're going is where we're gonna be. I think we're. I don't believe we have any disadvantage. If anything, as semiconductor companies look at relocating or locating facilities, I think because of our global presence, I think we're really well positioned on semiconductors. I think the second question on pharma, I would have said, I think as Paul Kippax highlighted, the Zetasizer has really benefited from the vaccine research. The pharma companies have benefited from that vaccine research to look at how to apply that same approach to other cell and gene therapies. Okay, the biologics is actually growing for us, and it's one of the higher growing. I think Paul referenced a 15%, up to 15% investment in biologics. Even though we're well-positioned in small molecule, that biologics growth and that research area, Andy, I think is really, it's gonna help us. I think the instruments that we have today are really well positioned to play there. Ben. Yeah, great. Thanks, Andy, for the question. Absolutely is the short answer. We are well-placed in automotive. About 1/3 of our revenue comes through automotive. Our technology and the areas where we're investing for future growth applies across the other three business segments I spoke about earlier. Aerospace, a big customer segment. Certainly they're harnessing the transition to digital just as much as the automotive guys. Recently visited Sikorsky, who are absolutely bought into our digitization journey and buying into our software, particularly with durability and reliability testing. I think I shared with you today in the presentation, we're having significant success with our smart sensing capability, where we take our domain expertise that we learn in the R&D environment and apply it to the in-process, in-use space. Customers like John Deere, for just one, where we're able to actually help them to improve the farmer's efficiency by creating smarter sensing and solutions for the end use. All phenomenal growth, and also I think about audio as well. We know our microphone business is having great opportunity by making the sensing capability both for end-of-line testing. It's not just about automotive, but the automotive picture I shared is a great example of how we join all of our capability up and serve a marketplace. Thank you. Okay. Just a reminder, if you're online, if you wanna post a question, then click on the link below the feed, and you can type a question in. George. Thanks very much. George Featherstone, Bank of America. You mentioned a willingness to drive market share gains. I just wonder if there are particular areas you're focusing for this, and also how key the R&D investment will be to that, or is there anything else we need to consider? Maybe, Live, send that one to Andrew. Market share, I hope you got the question, Andrew, market share gains and R&D spend. Yes. Thanks for the question, George. I mean, we should go back to Mark and Ben to talk specifically about the initiatives that they're driving. Just again, it comes back to what I said earlier, really, in that we have been very thoughtful around where we're going to invest money on R&D. Not only have we improved our R&D processes, R&D leadership, and really sort of improving the vitality score, which has obviously been helped by the fact that we now spend more of our R&D dollars on actually developing new products rather than maintaining and sustaining older products. You know, though we're really getting, you know, clear on where we see the biggest growth, where we see we can build leading positions, and then really investing there. You know, that has caused us to not only be able to sort of grow more strongly, but also to take market share. As you know, Mark showed you an example with the Mastersizer, the Zetasizer, the Malvern Panalytical. I mean, the growth of the Zetasizer, yes, has been helped, you know, significantly by COVID, but you know, we have established a really strong position really quickly with our technology there. Likewise, you know, we look at, you know. Dynamics, you know, the virtual test story is a really strong one. Clearly, we've gone through a buy and build approach. We bought VI-grade back in 2018. I think it was just over sort of $10 million then. We bought some businesses, we've invested, we've grown the business organically. You know, that would be over GBP 60 million worth of revenue this year. Again, you know, we've sort of, you know, really built a strong franchise there, building a strong position. Again, you know, we were able to offer, as Ben said, you know, an integrated solution which again is allowing us to take share. When we go, you know, large auto customers in particular sort of looking at their simulation suite, you know, we can provide a very comprehensive offering, which puts us in a very, you know, good position to, you know, go and win those larger tenders as well. But Mark and Ben, you know, I'm sure you can add a lot more color. Mark, do you wanna go first, and then? Yeah, sure. I think just building on what Andrew said. In our end markets, we are focused on where we're investing our resources. As Andrew said many times, we are absolutely blessed with opportunities, right. I would say we have more opportunities than we have resources. Our focus on our strategic growth initiatives actually helps us basically channel our investments into the end markets like semiconductor, like pharma, like batteries, okay. Where we're actually putting those investment dollars, and it's both by way of platforms, data science, analytics, but it's also, somebody asked me a question in the break, it's also about making sure we're investing in our people around that domain expertise. I tried to emphasize that really strongly, 'cause the end markets we play in and where we're investing, that domain expertise bridges the gap between the instrument, okay, and the customer. You could just sell the instrument to the customer, and they can figure out how to use it. Like in Andrew Heath's video, our problem solvers work with your problem solvers to solve our problems. It's a pharma customer in the U.S., and that's something that we're investing in. Ben, there's a chance for some free advertising here for a new. Yeah. New product launch. Yeah. Thank you. I was gonna take it with both hands. Let me build on the virtual test one first, because not only did we recognize the industry was gonna pivot towards virtual testing to put the human in the loop, to create a real experience, so the engineers within the OEMs can validate the vehicle before they build it. That's a real dynamic shift in engineering processing. We've now taken one step further, which is the Hardware-in-the-Loop, so that a car manufacturer can actually test an ECU, a hydraulic system, a braking system prior to actually going on to a validator in the physical world. When they're in the physical world, they're spending huge dollars, and if they get it wrong, it can cost a fortune. There's been car companies this year that have brought cars to the market 6-12 months later because it didn't work, or they didn't adopt the hardware in the loop technology as well as they could have. We've launched what we call AutoHawk this year, which is that connectivity with real-time computation so that the hardware can link with the simulator. Secondly, we also identified that the market is moving to a world where data acquisition needs to be harmonized, and we are days away from launching what we're calling Fusion and Advantage, which is the next generation data acquisition system, which will harmonize all of HBK's data acquisition and application software onto one scalable common platform that will enable customers to innovate at speed. It will be the fastest data acquisition system in the market with the highest number of channel counts. We've started to talk to our aerospace customers already. We've got 4 key accounts lined up in North America, and we're really excited about the potential to grow in that space with that innovation. That's why I said, you know, we will continue to invest 8% of sales through the cycle because we know that there's more and more opportunity to grow in these very, very key mega trend spaces. Thanks, Ben. Just behind Jee, Mike, and then to Mike. Thanks. It's Bruno Gjani from BNP Paribas Exane. I just wanted to come back to the other division because if I add back the central costs to Red Lion and Servomex or their fair share, and I compare the 2021 margin to the 2018 margin, my back of the envelope calculation suggest there's been about a 400-500 basis points margin degradation of that combined business unit. Could you perhaps confirm this? If it's true, could you perhaps shed some color on this? There's lots of moving parts in there, first of all. I think, you know, the performance of Red Lion and Servomex can be better. We're confirming that, and as we look forward, we can see opportunities to improve. I mean, I don't know what back of an envelope you've done 'cause there are a lot of moving parts in terms of what we've bought and what we've not bought. I'm happy to kind of take it offline 'cause in terms of getting there. I'm not immediately recognizing a major reduction in performance of those businesses. It's something that we'll be able to work through separately. The key point with Servomex and Red Lion is that they are good, strong businesses. They have opportunity to improve. You can see that on the margins from the group perspective. Actually, being able to visibly see them when you take into account how we've moved ISD and how some of the other bits have moved and also the head office cost. You've got to be slightly careful because the head office cost that we've disclosed this year is the 2021 head office cost. That was quite different in 2018 as well. Got it. Thank you. Just on dynamics, Ben, I was wondering if you could shed some color on those, on the growth of those four areas that you highlighted. It looks as if growth was high double digit last year, but of course lapping easier comps. This year to date, how does growth look like for those four key areas within HBK? Again, yes, I mean, in terms of our disclosure on Dynamics, what we're going to do is we'll be disclosing the Dynamics growth, and you can see the HBK numbers for the year to date. We're not gonna get into disclosing every single track. Obviously, from a capital markets day, we're giving you a sense of the divisions and the drivers. Going through and setting up a, you know, every quarter I go through nine or 10 different markets, it's gonna be, you'd love it, really, though, I'm sure. It's not something we're gonna do. You can see the growth rate of HBK this year, and you can see it through the previous years. Dynamics is quite easy 'cause you'll be able to see it. At the year-end, we will give you a bit more color on how Dynamics has done in 2022, but I don't wanna get us into a big habit of giving you lots and lots of quarterly or growth data on every little bit of the market. You'll have to work that out yourself. Thanks. Mike. Thanks. Mike Tyndall from HSBC. A couple from me, I guess, around cyclicality. I think in the past, you've said that 80% of your revenues come from your customers' R&D. Is it possible to think about that in terms of their expenditure on sustainability? Do we have a number in that regard? The second question, probably more relevant for scientific, but just the aftermarket portion of revenues, how big is that? Is there an opportunity to tap into that more, and what's the margin of that look like versus the other side of the business? If Mark's ready to do that one, 'cause I think there's. He talked a lot about where he's focusing on the aftermarket, and then perhaps we'll come to Andrew in terms of those growth drivers around cyclicality and the switch towards more sustainable markets. Mark, if you could just. Yeah. Mike, it's a great question. On the aftermarket for scientific, it's about, roughly about a third of our revenue. It comes by way of services, and parts. You would remember the statistic I used, over 100,000 installed instruments that are in the field. We obviously don't service every one of those, but there's opportunity to service every one of those, plus the new installed base that goes in every month. One of our growth initiatives is really looking at how to leverage up that installed base to grow our service revenue. On top of that, it keeps us close to our customers. It really creates opportunities for us to go in and sell additional instruments, okay, beyond the ones that actually serve those customers today. I think part of both for Particle Measuring Systems and Malvern Panalytical, it's really looking at how to leverage that installed base. We do it quite well today, actually, but there's still a lot of installed base that we're not touching just yet. Andrew, I mean, it's almost the heart of the strategy, to be honest, the move away from cyclicality towards more sustainable growth. Mike, I mean, as I already said, I mean, in terms of you know the key growth drivers we've been focused on, things like pharma, life sciences, healthcare, you know, increasing focus in food, some of the advancements in sort of precision agriculture that Ben talked around as well in terms of our sensors, all the way through to emissions control, energy transition, transformational mobility. You know, they're all driving some you know strong demand, and we continue to see that through this year. I think you said, if I caught it right, it's like 80% of our revenue is exposed to R&D. I mean, the reality is you've got about 30% of the whole group sales now is focused on or is delivered from aftermarket services to revenue. Within that, about 25% of that comes from software. That software component is, you know, growing year-on-year as we both invest organically and then, you know, as we look to, you know, make acquisitions. That's an area of focus that we've talked about. You know, certainly within Dynamics, the growth of VI-grade is certainly driving, you know, greater software exposure for us, which is nice. Equally, what Ben just talked about in terms of our data acquisition systems, basically taking advantage of putting the, you know, completing the merger for HBK, where we had something like 17, 18 different data acquisition systems served by 100, more than 100 engineers. You know, we've put that into one platform. Real state-of-the-art, you know, highest baud rate, highest levels of accuracy, fastest speed in the market. The software component of that, which really looks at all the, you know, data analytics, again, we'll see that as a big growth opportunity. We've got about, you know, almost 30%, a third of our revenue is sort of service software related now. Then of the remaining sort of 70%, maybe that's sort of, or is fairly sort of split up between sort of an 80-20 split between CapEx and OpEx. We're, you know, about sort of 55-60% as a group, you know, focused on CapEx investment from our customers, maybe sort of 10-15% OpEx. You know, additionally, in terms of OpEx spend, you know, clearly a lot of it can now go into the, you know, strong service aftermarket software generation. Siobhán, do we have any questions coming in online? If not, any more questions in the room? We have a very small one. Can we just clarify what our exposure to Belarus, Russia, and Ukraine is, please? Yes. It's zero. Thank you. Thank you. Okay. Any other questions in the room? One more just here. We'll take this as our last question. I appreciate it's been a long day, and we're all that stands between you and drinks. Go ahead, sir. Thanks. Bhavin Mani from Mondrian. Derek, you earlier mentioned that you don't need to rely on an improvement in gross margin to get to the 20% margin. Earlier on, I think Ben mentioned that they were looking to double Dynamics software revenue to 25%, presumably over the same cycle that you're talking about. Yeah. to 2027. Yeah. Just some rough math, I guess it would imply that by 2027, you would have about 11% of total sales coming from software. I guess, am I right in reading that, you know? I mean, what would the gross margin of software be if that is all something you can disclose? Just want to get an idea of beyond the 20%, how much further you can go. The gross margin on software is good, definitely. We're not gonna give a specific gross margin number on software, but you're right, it's a high gross margin that helps us. That's upside. I mean, I think the important thing that we wanna get across is that we are not simply reliant on gross margin to flow through to get to that net margin. We still have a lot of opportunity in our cost base and the continuous improvement as we put it to get there. You'll see on the slide, it's 20% plus. Now, you know, 2027 is a long time away. We're not there at the moment. There's lots of things out there that give uncertainty. I'm not giving a specific. This is one of the reasons I'm not giving a specific, you know, audit trail or a path to those numbers. You're right, that we are saying if we can get improvements in our gross margin, that adds on to improvements that we think we can do on our cost base. It's within our gift to get to that 20%+ over the period. Yep. Okay, there's no more questions in the room, I don't think. Andrew, let me hand over to you for some final comments, and then we will be on our way. Right. Thank you, Derek. Thank you everybody for joining today. I really am so sorry I've not been able to be with you. I have to say it's been sort of slightly surreal watching the event virtually and not being in the room with the team. I guess what it did give me the opportunity to actually sort of, you know, see our capital markets day through your eyes. Certainly what I saw is that we are a very different business to what we were three, four years ago when I joined. You know, we have significantly transformed Spectris into a simpler, more focused, higher quality business, you know, that now, you know, focused on two divisions, great businesses serving attractive structural growth markets underpinned by sustainability thematics. You know, we've given you plenty of examples of how we're solving critical customer challenges with our advanced instruments, with our broader capability and domain knowledge and application engineering experience that we have. We're investing for growth, both organically and through M&A. Equally, you know, we are driving operational excellence to further improve margins. You know, going forward, you know, we absolutely are convicted of our opportunity as a leading sustainable business to compound growth and to improve margins over the next few years. It's been a real delight to have shared that with you. Thank you to all of the Spectris team. It's been a great event. Certainly, I feel very privileged to have such wonderful colleagues, who have presented so well to you all today. Thank you to you, and thank you to everyone in the room. With that, Derek, I'll pass back to you to round things up. Yeah. Thank you, Andrew Heath. We have missed you. We hope that you get well soon. Please join us at the displays. There's some really interesting science going on over here where you'll be able to see our products in action. We have virtual reality over here to see the VR testing in action. We also have a stand with the Spectris Foundation and the very car, it's a bit like Formula One. We have brought the very car that was built by the school students in Sheffield for you to look at. Perhaps more importantly, we also have some drinks, and some food for you to enjoy. Thank you also to the IT team and the technical support for getting us through today. I hope you all have a fabulous afternoon and journey home, and thank you for coming.