Ladies and gentlemen, welcome to the Marel hf webcast Q4 2022. Today, I am pleased to present CEO Árni Oddur Thórðarson. For the first part of this call, all participants will be in a Listen-Only Mode, and afterwards there will be a question and answer session. Speaker, please begin. Good morning, dear investors, and all that are listening today to our 1/4 four and full year result 2021. Moreover, I hope it will as well be as well, especially in the Q&A, Forward-Looking how we are looking at the future, how we see our 2023 targets and 2026 targets. Maybe you noticed that Tinna was not with us here in the beginning. She will join us a little bit later. How ironic is it that she was in logistics problem in the middle of the snow here in Iceland, but she will join us here later in this webcast. Let's go straight to the matters and maybe the limelight, the highlight of what we are achieving. We made a courageous move in the middle of the pandemic to step up the sales, service, resources out in the regions, as well globally to focus on the Consumer-Ready market. We formulated a special business unit with focus on retail and food service solution in the secondary processing. We are seeing it in the order intake. We are seeing order intake at a run rate of EUR 1.6 billion in the back end of the year compared to where we were standing 2 years ago in EUR 1.2 billion a year in order intake. EUR 100 million of that is acquisition growth. The EUR 300 million is organic growth. Furthermore, our leading indicator shows the pipeline very strong, so we truly believe that we will keep on this high level, and we are aiming further up. This is very important that we are taking market share in a market that is having tailwind. We are seeing, though, that those years will define the winners and losers here in next 3-4 years. If we look at our peers, and we are in very, very good contact with others, we are seeing, unfortunately for some, that they are nearly empty in order intake and orders received, those that are lacking the global reach and the infrastructure and the backup, so our customers that are relying on life support for 15, 20 years believe that you will be there and keep the factories up and running. We are as well very pleased to see indications how the performance of our customers is improving. All in all, order intake EUR 1.5 billion over the year and order intake EUR 1.6 billion run rate in the fourth 1/4. What is driving this on the customer side? We are doing it with continuous innovation. Very important, continuous innovation in good times, in great times, and not so good time, so we have constant new pioneering solution that push the boundaries. Then came the pandemic that is casting light on the value chain has been maximizing the silos too much instead of seamless flow. We are seeing 3 main factors why our customer push forward and are now investing and are planning to invest more. It is the labor scarcity, wage inflation, and turnover rate of employees. In recent 2 years, we have seen in geographies like U.S., the base salaries in the factories increasing by 25%. We have seen in some cases the turnover rate of employees going from 20 to 40%. Moreover, the market channels are changing. We are seeing in U.S., U.K., E-Commerce with food increasing in recent 2 years by 100%, Oceania by 400%, and we are seeing China exploding in E-Commerce and even becoming larger than the U.S. market. Comparing that with 5 years ago, the wet markets out there and as well the backyard farming, this is changing at speed. The 1/3 pillar, and not the least one, is sustainability. It is becoming more fundamental factor in the decision. Less resources, less energy, less water, and ergonomics inside as well the plants, so you can have equal access to genders, and you can as well have more social distance, safety of the people, food safety, and less resources. We started 2017 to make mandatory that all our innovation projects go through sustainability check, and then we have our digital solution. Overall, we are very well positioned to tackle the market. We are in pole position to tackle what is happening, and this is very valuable growth that we have been crystallizing and we are foreseeing. Let's go to our results. 11% EBIT. Long way or not long way to 16% EBIT. We have to bear in mind our muscle memory is 14, 15% EBIT, and we are going there, back on track. We are sacrificing shorter term performance for our transformation project this year. I was explaining how our customers are completely changing their flow. We as well are, for instance, investing in an End-To-End spare part insourcing, warehousing, distribution channels around the globe. We are having a record order intake in spare parts in 1/3 and fourth 1/4 and in service level agreements and in software and in standard equipment, in the secondary processing. We need more scalability. We need more speed. This generation that is working for our customers, they want answer now when the spare part or the service will arrive. They don't need it necessarily tomorrow, but they need to know, with the snap of the finger, when it arrives. Our industry is not there yet. We are going there. Let's peel the onion from bottom up. Our innovation, like I said, continues on strategic level 6%, same as 2023 target. Our SG&A 150-200 points up from our previous level by purpose to go ahead of the growth curve. If you look at SG&A in comparison with order intake, it's below 18%. We are definitely going to reach the 80% 2023. In the gross profit level, we will discuss this year, will we reach 38, 39, 40 or 41% next year? 2023, I'm talking about, compared to the 36, 37 level that we are in fourth 1/4 and the full year. We are focusing on those matter. It is the mix that is improving. There is more agile pricing. We raised prices in October. We raised prices in January. To explain our business model, our aftercare service runs through and filters through if we adjust prices in 6 weeks' time. Our short cycle standard equipment runs through in like 3 to 6 months, and our project runs longer through. This is good and this is bad. We are not as quick as some of the short cycles in fourth 1/4 up in the EBIT, but we didn't go down in the valley 2020. We navigated well throughout the system. Like I said, transformational projects are on a high scale. One indication is the operating cash flow. You see here the free cash flow after extensive investment as well. Our operating cash flow is at a level of 15.5% compared to 11% EBIT. However, if we exclude the inventory safety buildup, our operating cash flow is at 17%. All in all, we will discuss this further. We have a clear path of recovery, and let's jump straight into the industries. The poultry industry is clearly back on track. Their margin is 18%-21% EBIT. Now we are improving the mix in the order intake. The aftercare business is becoming even more prominent, and you're seeing that we are touching the 15% level. We are going step by step by step above 80%. We might be a little bit under this level in first 1/4, but then we see gradual pick up from second 1/4. If we move over to the meat sector, then we are having a 9% EBIT over the course of the year. We are having quite many Non-Recurring costs in fourth 1/4. We are changing how we do the project execution, not toward basically the customer though so much. It's internal flows, taking it on similar levels as the poultry. To say it honestly, we are below our plans in our operating result as well, last year, and you will see it in our annual accounts as well of bonuses to the executive team that we are clearly delaying compared to the overall results here. I'm not blaming it all on meat. While the transformational results are very clear and our operation performance target 2022, 2023 are clear, so we are basically more delaying it, I say. Meat is now changing the mix in the order intake. We are seeing fabulous sales in aqua, for instance, and et cetera, where we are mixing the grinds. We are getting the wins in Oceania, China, LatAm, and then we are strengthening the position in the U.S. Fish is in line with targets, and it's amazing to see that after acquisition of Valka, yesterday announced full acquisition of Curio. Let's look at Curio a little bit. We decided to acquire 50% there. The founder wanted to stay and not take it overnight, so we said, "Let's take four years before we fully integrate." The cooperation partnership is going so well in recent 2 years. We are starting to cross-sell, synchronize how do we go to the market. Now to get more synergies, we go fully together, Valka, Marel, Curio, with partnership with Stranda. This is exciting times. There will be some integration cost as well, 2022, but a clear path. It matters a lot that we are now reaching above EUR 200 million in revenues with high organic growth, at least looking at the order intake in the fourth 1/4. It was a little bit. I told you I would be short and precise at the beginning, Linda. I'm a little bit longer than because I got so excited, but over to you, Linda. just here today. I'll give you the highlights of both Q4 and the full year of 2021. Starting on the order intake, we are seeing very positive trends there, like both in the 1/4 and for the full year. The 1/4 at a level of EUR 400 million. If I look four quarters back, we have been delivering order intake in the area of EUR 360-EUR 400 million, which translates for the full year to a level of EUR 1,500 million, which is 22% growth between years, which is of course excellent trends. That's happening on the back of further investments in the coverage, which is also paying off. Of course, there's clear need in the market for further automation and for our solution. A lot of activity here and lot of excitement. I think the team is doing great things on the order intake front. Something to celebrate. If we then look a bit at the mix, like we're also seeing positive trends there, like more sales of standard equipment. We're seeing spare parts at a record 1/4, now 2 quarters in a row. Aftermarket is around the level of 40%, if you look at the percentage of revenues. Looking at the order book at healthy levels, EUR 569 million, which is around 42% of trailing twelve months revenues, which of course gives us a very strong foundation and underpins a positive outlook. We do see step up in revenues now in the 1/4. We're at a level of EUR 367 million, and that translates for the year to 10% revenue growth. If you then think a bit about the order intake growth of 22% and the revenue growth of 10%, that underpins quite clearly that we are firmly targeting higher revenues in 2022 compared to 2021. We continue to see supply chain challenges that's impacting the prices to us and like the delivery time. Definitely impacting our gross profit levels. We are taking mitigation actions like we are increasing prices of our own equipment. That's already happening. Of course, something we need to stay very much on top of because I would say like in general cost inflation and labor inflation is at escalated levels. At the same time, we feel quite confident on the SG&A. Like there we have stepped up. We also feel we are reaping benefits from it already. We really think that was the right decision to do. With more volume, the strong pipeline and the strong order book we see, we feel confident that we will see better cost coverage with increased volume helping us getting to the targets of 18% in 2023. Profitability for the year at a level of 11.3%, clearly below our targets, and of course has our highest attention, in addition to what's happening in the gross profit area. Cash flow strong. Very strong cash flow, like, especially if you take into account that we have been building up inventory levels throughout the year, using our foundation and strong balance sheet, and leverage at a level of 1. To run a bit through the Slides, good quality of earnings. Here we highlight the industries split, the geography split and also the business mix. Looking at the industries, you can see here that poultry is at a level of 47% compared to 51% last year. We did start the year a bit slowly on the poultry side, like in larger projects, which has then really picked up in the last 3 quarters. The industry mix has been improving, like with higher percentage coming from poultry throughout the year. You see that now, we are getting closer to the historical levels, which of course is important to mention because it links directly with our profitability. Looking at the geography split, like you can see here, that Asia and Oceania moving from 10% to 13%. Like here we have been securing important orders, especially on the meat side, and also like looking at Americas, moving from 33% to 36%. This is balancing a bit. Looking at the business mix, 40% coming from aftermarket. Overall, yeah, good balance and good movements on this front. Looking at the operational performance, it's clear on the gross profit side that we are at the level of 36.6%. It is impacted by the supply chain imbalances and that is having direct effect here. We are also like working on a number of improvement projects like to increase speed and scale. That's impacting the gross profit as well. But as I mentioned in the beginning, like we are taking mitigation actions to partly offset the increased cost. On the OpEx there we are like very confident. We feel SG&A even though it's higher than our Mid-Term targets at the moment, like we feel we've taken the right steps there. With more volume, we will have better coverage. On the G&A side, we are focusing on, like, also efficiency measures and taking important steps there, for example, like with the shared service. R&D at strategic levels, there it's all about just continuing what we're doing, like coming out with innovative solutions, solving the issues we see in the market with our customers. Pretty straightforward picture on the OpEx lines. In my mind, it's all about the gross profit and then directly influencing the bottom line profitability. Healthy order book, EUR 569 million, close to 42% of trailing twelve months revenues. You can see we started the year at a level of EUR 416. Of course, as we've highlighted before, the order book consists of financially secured projects. Like, it is at a very healthy level at the moment, which enables us to better balance and plan and schedule. Earnings per share here, like, we have the firm target of growing earnings per share faster than revenues. You can see looking at the full year 2020, like, we are at a level of 12.85, compared to 13.62. Nothing has changed in our target. Like, this has our focus. Looking at the dividend to mention it here, like, we did pay 40% dividend for the year 2021. That was around EUR 41 million. The proposal towards the AGM is for 40% dividend for 2021 as well. That will be then addressed in the AGM. Looking at the income statement, I'll go relatively quickly for this because we're showing both the 1/4 and the full year. You can see here, revenues are growing by 7% in Q4. It was important to, like, get the step up to a level of 367 because we've been seeing high levels of order intake now for the full year. You can see here, like, that S&M cost is yeah quite somewhat higher than it was before, in line with what we said. Like, we are stepping up there and that has been a very good decision. This is then returning us 11.2% EBIT in the 1/4 compared to a fairly strong 1/4 of Q4 2020 at a level of 15.2%. You can see here, like, what is moving the needle is the S&M and, of course, like, the gross profit trends, which I mentioned on the supply chain side. Net results are EUR 28.5 compared to EUR 29.1 in Q4 2020. Looking at the full year, here you can see revenues growing by around 10%, quite a lot driven by what we saw in Q4. Around 4.4% is coming from organic growth and 5.5% from acquired growth. It's the same flavors here. You can see that S&M is increasing between years and there is pressure on the gross profit and net result for the year at a level of EUR 96.2 compared to EUR 102.6 in 2020. EBIT 11.3% compared to 13.5%. Combining this a bit, like, looking at our Mid-Term targets, like, here you see the gross profit at a level of 36.6%. It's clear that we need to move this one. Here we are focusing on a number of fronts. It's about volume, it's about mix, it's about, like, value-based pricing. It's also about our customer journey, simplifying that also, streamlining a bit the back end of it. That's where our focus is on this front at the moment. We have SG&A at the level of 19.4% above our midterm targets. We see a clear path there with more volume and our improvement projects to get to the 18% level. This then combined, of course, with the aim to return 16% EBIT in 2023. Like, working on a number of fronts to get there. Like, you see, high order intake, good pipeline, which should really translate then into higher volume. With the right focus on the gross profit, we believe the path is clear. On the asset side of the balance sheet, not many things to mention here. Since the beginning of the pandemic, we have stacked up in inventories and you can see that reflected here. It's quite a sizable amount, around EUR 74 million, including inventories that come in with acquired companies. I think it was, like, very important to use the balance sheet for this, and I think it really has made operational matters more manageable. It's complicated enough. Like, really having the inventories and the parts availability at the maximum level we can manage has been an important step. You can also see here, like, property, plant, and equipment is going up, increased by around EUR 30 million. Like, we are investing in the business, as we have said. We are, like, opening up demo centers. We are also, like, working on the End-To-End spare parts journey, taking steps there to prepare for improved back end in that area, in addition to, like, yeah, improving our facilities across the business. Good steps made here. As we've said before, like, we will stay on higher CapEx levels for the coming four years, between 4%-5% of revenues, and then return back to the more normalized levels after that. On the liability side, here you can see the committed facilities we have, close to EUR 670 million that we have in committed liquidity. It just underpins, like, our financial strengths to take on next steps when opportunities arise. Leverage at a level of 1 compared to our target of between 2-3. On the working capital side, like overall, the main, I mean the main item to mention there is the inventories which have been building up. You can see here as well that contract liabilities are increasing by around EUR 70 million because of down payments we're getting on new orders, thinking about the trends in the order book. Robust cash flow. We are delivering very strong cash flow, as I mentioned, like, EUR 212 million from operating activities, despite the step-up in inventories that we have explained. You can see here that free cash flow is at a level of EUR 116 million. We are paying taxes of around EUR 30 million, investing activities of 67, with the majority now is like on the PP&E, but you see like around 65% coming from that. Then net interest paid around EUR 7 million. We are investing in associates and subsidiaries. Like, that's the acquisitions that have been happening throughout the year that we mentioned, the PMJ, Curio, like final payment for Treif, et cetera. So that's explained here in the EUR 54 million. We paid dividend of EUR 41 million. These are the highlights of the cash flow. On the KPIs, I mean this is like what we're focusing on all the time. It's about the earnings per share. Like, if you look at the revenue growth in the period 2017 until now, it's around 7%. We are targeting 12%, so it's clear that we need to step up in the coming period. We are also seeing different trends in the market, so we are expecting market growth to be at a higher level in the coming years in the area of 6%-8%. Marel, of course, is coming out with innovative solutions, so we should really be in the top end of that. That's what will move the needle here, in addition to of course continued focus on disciplined capital allocation. On the free cash flow, just to highlight again, I mean EUR 116 in a year that we have built up inventory levels is very good and very strong cash flow. Operating cash flow as a percentage of revenues is around 15.5%. If you think about that in relation to the EBIT, you can see, like, it is very strong. Net debt, EBITDA, at a level of one, so that clearly underpins our financial capacity to take further steps on our acquisition journey. Of course, it's always about finding the right opportunities or create them. Just a final one. We had the Capital Markets Day miniseries and we did have 5 events. If you haven't watched it, I encourage you to watch it. I think it can give very good insights into our holistic equity story focusing on growth, the global reach, digital and sustainability. We have, like, just a very short video summing a bit up, like, the highlights there, but really encourage you to watch it. I'll give the word back to Arni when the video is over. Thank you. We expect the market growth in the coming 5 years to be in the range of 6%-8%. The financials of Marel are all about long-term structural growth. Our focus right now is to ensure that we continue on our journey together with our customers. Digital is central to Marel achieving its targets. This calls for a bold and ambitious plan with clear targets. Hello, and a warm welcome from Marel here in Reykjavík, Iceland. Thanks, Linda. I'm here back going through it, but we had a long discussion. Should we talk about strong order book or should we talk about healthy order book? Our conclusion was healthy order book. We are finally, after quite a lot of headwinds in the market, first the trade constraints, then the pandemic, above 0.4 times annual revenues in the order book. We feel more. We said previously we wanted to be in 0.4, 0.6. It's slightly lower now because the mix is changing to better, not so heavy in the big large project. It's more balanced towards standard equipment that is coming into the revenue game. We see the mix as well changing more. Moreover, record order intake in the aftercare market, because we are the maintenance partner of choice. We feel very good at this level in the order book. Even though I was a little bit harsh to our people of the operating profits, then of course we were sacrificing short-term profit for transformational projects as well last year and in recent 2 years. That is pretty clear. To explain a little bit better, we are not delivering goods through UPS or FedEx that the customer can just take. In many cases, we have to design the matters through those digital tools, we did that. Instead of being able to visit the customer, we engaged in sales there. Furthermore, we have to have project execution and we need to install it. We have been ramping up on learning and development in China, in Asia, in LATAM, and this will distinguish us from the rest of the industry to make it absolutely clear. The Atlanta trade show, the activities are picking up. Great to see again all the friends. Unfortunately, I could not be there at this time. But the highlight is, of course, that, for instance, we were opening the Bell & Evans. Scott and family, it's so great to see our partnership bearing those fruits. You have been on the forefront in sustainability, safety, even the first one with organic chicken in the U.S., and you're ever young pioneer even though you are the oldest branded chicken in the U.S. market. Due to your reuse of water and energy, you get the first green financing there. You know as well as we that we need to collect and select the data so we can report it to the financial world, and this is actually happening. Our customers are on net zero journey as we are. Nota bene, Marel hit all the KPIs in the loan agreement, our green loans as well. Automation, agility, sustainability, driving the factor, continuous innovation throughout. I'm speeding a little bit up because I believe we will get a lot of questions. We are ramping up the front end in sales and services, especially outside Europe, U.S. We implemented a regional structure having a fully local team. It's not a globalization, it's rather localization around the globe. When you're doing that, you have to play a little bit in 2 systems in the back end. Now we will synergize the back end, automate the back end just like our customers are doing. This is what is amazing to see that in 2 years' time things are happening that we thought would happen in next 10 years. However, many things were later 2020 than you thought would happen. The year 2000, I thought Microsoft Teams or something else would be 2010. But this is how things works. Now we are accelerating, and it will distinguish between right to win, right to play or completely lose the game. Sustainability matters. I challenge you to go to our Capital Markets Day where we go thoroughly through it. It is not only a matter on itself. We embed it in everything we do. We embed it in our strategy, our operating model thinking, the local teams, how we distribute the spare parts, how we are close to the source in Slovakia, China, Brazil, and so on. Then we set targets. Maybe the most interesting part is the works councils, the unions, top management, and capital are agreeing on what matters, and then we need to get the whole organization to run in the same direction. Great example of how acquisitions are driving organic growth and PMJ and us here in Marel in the duck market. Even though it sounds small, the acquisition, we are providing first year after coming together, the first full line in the duck market. Just to re-remember, the metric tons in the duck market are twice as the Atlantic salmon, especially in China, and we have ample of opportunities in next 10 years to thrive there. Thrive in meat, cross-selling, upselling fish. We are creating here a champion that can be with the customers and take the full line concept in the fish sector, salmon, whitefish, farmed whitefish, and then we can explore new avenues like the shrimp business in India, in Vietnam, and so on. This is how we think, this is how we grow and utilizing our global reach throughout. Now we are ready Organizational-Wise, Financially-Wise, long-term finance with less than 1x leverage in EBITDA to take on largest acquisitions. We firmly state our 2023 targets and 2026 targets. Instead of explaining 23 targets in detail, let's go to Q&A, because I'm without doubt expecting some questions in that arena. Right. Thank you, Arni. The mobility challenges are not only happening on a macro level but also on a micro level here with -10 degrees in Iceland today. With that, just as a reminder, if you'd like to ask a question, please do so via the conference call or you can also email ir@marel.com. With that, I'd like to hand over to the conference call moderator. Thank you. Just as a reminder to register for a question, it's a 0 followed by the 1 on your telephone keypad. One moment for the first question. Okay, thank you. Our first question comes from Akash Gupta from J.P. Morgan. Please go ahead, your line is open. Yes. Hi, good morning, everybody. I have 2 questions, please, and I'll ask one at a time. The first one I have is for Linda. If I look at 2021 gross margins, we are at 35.9%, which is 410 basis points below your target for 2023. Having said that, you have some one-off in form of the supply chain impact that may go away in next year. The question I have for you is that can you give us a flavor in terms of the impact that you have, which could be like temporary or transitory when it comes to supply chain inefficiencies, maybe something related to COVID that is embedded in 35.9% to get some sense of what sort of underlying margin improvement you will need to get to 40% target? Yeah. Like, looking at the gross profit for the full year, it's around 36.6%. Like, clearly below the 40% target as you mentioned. Supply chain challenges that like have been ongoing, what we have said there is we would quantify it somewhere around 200 basis points as a contribution to like where we are now with the gross profit. The timing of like when this will be relieved is tricky to say. Like, what we comment on as well on the Q1 and Q2 in 2022, like we are expecting cost prices and pressure to like continue for the first 1/2 of 2022. Like we are more looking towards the second 1/2 of the year to like start seeing improvements on this level. In addition to like supply chain challenges, we are of course working on a number of improvement projects that should then start kicking in and improving the gross profit. In terms of our plans, like we are more focusing on the second 1/2 of 2022 and then very clearly focusing on reaching the 40% target in 2023. Am I allowed as well to add, even though the question was the challenge in outside, what is that causing? It's much more interesting instead of having the excuses of that, what are we doing? Like Linda said, we are doing a lot of transformation projects, but what are we really doing in the spare parts that is running high? We are separating the spare parts handling and the manufacturing that is planning and scheduling in manufacturing much faster tick-tock in the spare parts, and you have to answer on the spot, when will it arrive? Even go into proactive maintenance. All of the business cost and the IT cost related to that, except from the investments, we take it through the books. That's why I said that the operating cash flow of before inventory build up is 70% against the 11%. We need to do this just like our customers are streamlining. Then in the back end of the sales offices, we didn't dare to consolidate it in them when we were building up 2 system out in the region and the business unit. Now we go for synchronization of it. Pricing in the end, more dynamic pricing. Thank you. My second question is also on 2023 targets. You have a target for gross margin and operating margin, but what we don't have is revenues. The question I have is that can you give us some flavor on what kind of top-line growth you will need in the next couple of years to get to these levels, given, like, if we don't get there, then there may be some shortfall on margins. Then maybe adding up on that, could there be any downside risk to these 2023 targets from M&A? Maybe, I don't know if the companies you are looking to acquire also come with 40% gross margin or, maybe if you can comment on that. Thank you. Good question. Make it absolutely clear, this is excluding acquisitions. Our target of 60%. We are not going to fix it with acquisition. Of course, if you would take acquisition in 2023, that could color it. Our assumption, you see our assumption, we made the courageous move in beginning of the year to ramp scale up ahead of the growth curve. We are expecting same activity level or higher activity level. We said very explicitly in beginning of last year that we believe that the long-term growth in the market is 4%-6%. We believe next 5 years from start of year 2021 would be 6%-8% growth in the market. I said previously in this show or discussion as well, we are seeing some companies and others doing very well like Marel, and we are seeing order intake growing much faster in the beginning of that. We will on top of that, if we talk about 2026 target, take on larger scale acquisition. The EBIT target is clear. We will not fix it with acquisition. We will though continue on our path in acquisition. It's not for the sake of the growth, it's to get better delivery to our customers, become a one-stop shop. We simply believe 2026 and beyond, we need to have that scale and scope to service our largest customer on a global scale as a one-stop shop. Yeah. Perhaps you already mentioned it, but I mean, like then we have of course the EUR 3 billion target out there for 2026 and like, the midterm targets should be then a good step in that direction. Like, I would also think about it like that. Thank you. Thank you. Our next question comes from Eric Wilmer from ABN AMRO. Please go ahead. Your line is open. Good morning, everyone, and thanks for taking my questions. I will also ask them one by one. I've got a few. It seems like both your receivables and inventory positions saw further cash outflows during Q4. I guess looking into Q1 and Q2 this year, where supply chain constraints are expected to remain, would you expect further cash outflows before things normalize in H2? That's my first question. Yeah. I mean, we are following this very carefully. I mean, I do think, like, what we've done now on the inventory side creates, like, a good balance for us to work from. I would say, like, if we need more, we will do more, but I would expect it to start balancing a bit out, looking at the trends. I think we really feel like we are using our balance sheet well, taking those decisions on the inventory front. Like, if we need to continue doing that is what we will take action on. Maybe to add to it, Tinna had a logistics problem in the middle of the winter here in Iceland. We believe the spring is coming. Maybe it will only be in the second 1/2 of 2023 compared to the winter and the logistics problems. We decided to take more safety, and I'm seeing many companies that are publishing now taking down the inventories in first 1/4. I would not want to be really a customer of companies that is squeezing the inventories down. The supply chain challenges will be quite a lot in first and second 1/4 this year, and I would be very carefully as an investor as well in those companies that are squeezing the inventories out in back end of last year. Just to be honest and frank about it, we decided to stay on the safe side. Understood. Very clear. Thanks very much for that. I also had a question on your aftermarket sales, which equaled 40% again in 2021, in line with 2020. You mentioned that spare parts saw another record level after very strong Q3 also for spare parts. Does this mean that your service revenues were actually somewhat lower this year to still arrive at that 40% total? Thank you. Yes, that's correct. Lower in recent 2 years, the service revenue. The reason is mobility challenges. Now we are seeing the mobility coming in, our service people visiting the customers. The good thing about visiting the customer, you see as well opportunities where we can advance the plans together. We don't see more than our customers, but together we can see the opportunities because we know our portfolio. However, the nice thing as well in second 1/2 of last year, we see service level agreements picking up again. Because of course it's like a priority pass in the Disney World or something like that when you have a service level agreement. It is we are seeing that then you are having a service level agreement. We are proactively analyzing it, delivering, securing it in advance, and so on. It's nice to see that again, but it's correct. Talking about the gross profit, I know it was a growth question, but we are completely changing the system, digitizing, automating the system in spare part handling. Part of the gross profit is we did not only need in some places to work on double shift, we needed to work on triple shifts to be able to handle and deliver the spare parts. You can imagine the cost in the gross there compared to automating, compared to have the ergonomic setup that you can have all genders working there and in a nice and bright seamless flow. Just like it is required today, in a second you have to answer inside the company and to the customers. Understood. Thanks. Two very short questions. One on the rising cases of bird flu across the European continent. Is this in any way impacting your customers' decision to invest in equipment? Yeah. We will have African swine fever. We will have bird flu. That is actually why we are in poultry, meat and fish. That's actually why we have the geographical spread, and that's actually why we are in all of the processing steps. That actually as well why we will expand further our playing field into alternatives, vegetables and et cetera in the course of the time, and that's how we play the risk matrix. However, overall, not geography by geographies, the indication is industry by industry, and especially our industry, is robotics, automation, seamless flow will be higher than we have ever seen, at least what our customers and the many other industries are planning. No wonder in the labor scarcity and turnover we are seeing. Okay. Lastly, you mentioned that Non-Recurrent integration costs for the fish division that they are likely going to impact H1 profitability for this division. Is this fully related to Curio? I was wondering and to what extent or what will be the order of magnitude for these costs? Thank you. It is Curio and Valka. Especially the Valka portfolio and Marel portfolio is more similar. Although the nice thing to give you insight, it looks like the same, but in some steps in the processing, the customer decide to go in a flow or a different way of handling it. We standardize the portfolio, and we have A and B options of the swimming lanes together. We go through it systematically. We have taken quite significant steps in the integration. We are seeing the orders coming back in Valka immediately after we signed it. They are having very good solutions, and we are indicating some integration costs. Nota bene, order intake was higher than usually, so that's positive. Then counterbalancing 2022 will be integration cost. We are looking at 2023 and beyond where we can push the operational results in Fish above 10% when I'm okay with the 5-6% level last year in Fish. Just maybe as a Follow-Up to that, I mean, the order book was indeed strong, but the EBIT base is, it's your smallest division. Should we look at near 0% EBIT margins in H1 for Fish? You know that we don't give guidance at that for the year, so we Yeah. Maybe Linda, maybe you take this one. Perhaps I'll comment on it very high level. I would say, like, that would not be the magnitude that would not be my expectation for Fish. But we wanted to highlight that we can see some costs connected to integration, but they're not of this magnitude you mentioned. Having said that- Very, very helpful. Having said that, if we need, and we believe that we can integrate faster and do it faster, we basically don't care of 1/4 for 1/4 compared to underlying the customer delivery and where are we reaching the run rate. Pleased with many things that happened in the Fish year, and it's not an easy one to take on those acquisitions, even though they sound in grand scheme of Marel small, they are quite interesting for Fish. Curio and Marel is giving a promise where we can head in this direction. We had the wins in LatAm in tilapia last year, quite many in new avenues. We will have wins later on in the shrimp business in Asia and so on. We said again and again one year ago when you asked and others rightfully about the OpEx coverage. We said we are not going to slow down the OpEx. We will cover it with volume. Now we are taking from EUR 150 million to EUR 200 million in revenue in Fish. Next step will be EUR 250 million, and then we get more and more coverage of our innovation cost. We needed to innovate because we have some building blocks that means a lot for our customers. The outlook is pretty good. I'm getting some signals that we should shorten the answer because we have some questions pending. Let's continue. Thank you. Just as a reminder, to register for a question, please press zero followed by the one on your telephone keypad. Kindly limit your questions to a maximum of 2, please. Thank you. Our next question comes from Andre Mulder from Kepler. Please go ahead. Your line is open. Good morning. I need 2 questions. First question. Linda, you mentioned this 200 basis points pressure from supply chain and logistics impact. Is there any way that you can split that between the price increases you're facing on the materials and on the other hand the extra costs that is related to late delivery or more difficult delivery there? That will be my first question. Second question. Can you give us a feel of how the order intake has been developing in regions, especially for example the U.S. and especially the meat part? If you can give some insight that will be appreciated. Yeah. On the supply chain part, I think I can't really help you there. Like, I think giving the magnitude of 200 points is like giving quite some insights already. Like, it is a mix of factors that are impacting our gross profit. I think I need to leave it at that. Arni, do you want to comment on the order intake? Yeah. We are seeing like usually the U.S. is quite quick to respond, and especially the poultry is quick to respond. To recap overall the industry, fourth 1/4, first 1/4, fourth 1/4 the year before in poultry quite soft and ultra strong now and the pipeline. We started with blast in meat first 1/4 last year. Quite a lot of softness in 1/3 1/4 and then good order intake again in fourth 1/4. Geographically, China strong in beginning of last year, weak in recent 2 quarters. This is how it has been in recent 20 years fluctuating. U.S. is the first up, but we are seeing Europe as well surprisingly strong at the moment, and LatAm and then China planning quite a lot. No further details though. Good. Thank you. Thank you. There appear to be no further questions. I'll return the conference back to you speakers. Okay. Excellent. Thank you. We've also received a few questions via email, and the first one is from Tom Cosper of Bayberry Capital. Given inflation and supply chain pressures, should we expect the margin profile to get worse in Q1 2022 and Q2 2022 versus the Q4 2021 before it gets better? Perhaps I start. I mean, as I highlighted a bit, like, there is definitely a lot of cost inflation and, like, labor inflation, on escalated levels, in the global market. This is something that has our high attention. Of course, we are doing everything we can to try to limit the potential downside. I would say, like, in Q1 and Q2, like we are expecting to see continued pressure on the supply chain side. That's why we highlight more like our target towards the second 1/2 of 2022 and 2023. Could it happen? Yes. Are we trying to do everything we can to limit it? Absolutely. This has our highest focus and attention at the moment. Maybe to add to it the big picture where we are heading in second 1/2 and next year on following. We have seen 25% labor rise by our customers and turnover rate escalating, need for seamless flow, 25% increase plus turnover. At the same time we see our peers and Marel maybe increasing prices by 12%. We are convinced, taking our pioneering solutions that we have in our hands and the need and the call from the consumers how to change, that we have pricing power to adjust it. We are not short cycle company. It goes fast through in the spare part. It goes a little bit slower than spare part, but relatively fast compared to other companies in the standard equipment. Then our projects take 9-18 months. This is how it filters through. Do we have pricing power to compensate it? Yes, we have. Thank you. His second question reads: What percentage of the elevated inflation impact is addressed by the 4%-6% price increase? Explain your value-added pricing strategy and perhaps an idea of timing and magnitude of this pricing strategy. Value-based pricing is especially when you announce a new equipment solutions to the market, then you go what value you are creating for the customers if you're a pioneer. However, you look beyond as well, how likely it is that other will innovate. You don't milk it in the beginning, but you don't use cost plus. You go where the value is, so you can penetrate the market. Even more interesting in spare part, you go through with category by category by category, how you do it. In some categories, in where it is, where 1/3 parties can come in, where you are not unique, you have to lower it. In other category, you need to go higher. You need to lower it because our customer want a one-stop shop. You have to be fair in the pricing. Overall, you then increase it, lower it to get more market share, and you increase it. Overall, it was on average 4%-6% increase in October, and again around 2%-3% in the beginning of the year. You have to be disciplined in the big project as well in the pricing structure and et cetera. When you have a healthy order book, it matters a lot. It gives you more discipline in the discounts and et cetera. In the end, this is ever evolving. The awareness is of course much higher now. We cannot give exactly how much it cover. We have been coloring it very much that it could be a downward pressure in the first and second 1/4. The volume and the mix will be the upward pressure. Thank you. I understand we also have a question from Kvika Banki via the conference call. Yes. Just for, um, the question by pressing zero followed by the one, and I will open up your line. We do not have any audio questions. Thank you. Okay. Very good. Well, I think we've reached the end of our session today. Thank you all very much for your time and attention. I hope the session was informative and insightful. Indeed, as Arni Oddur mentioned, spring is just around the corner, and we hope to see some of you, our great shareholders at the AGM on the 6teenth of March. Thank you very much.