Good morning to you all, and welcome to Marel's Q1 results meeting, broadcast to you live from our headquarters in Reykjavik, Iceland. My name is Tinna Molphy, head of investor relations, and I will be acting as your moderator in today's meeting. That should take no longer than an hour, including Q&A. We have a great team for you here today. CEO Árni Oddur Þórðarson and COO Linda Jónsdóttir will go over the financial results and some key business highlights. Chief Strategy Officer Árni Sigurðsson will then give you a quick teaser on the agreement to acquire Wenger Manufacturing, as announced yesterday. We encourage you all to tune in to our additional investor meeting on that exciting topic later today at 4:00 P.M. CET. We will then conclude with Q&A. If you would like to ask a question, please do so via the conference call. The dial-in details can be found on our website and in the stock exchange announcement. You can also email your question to ir@marel.com, and we will read out your name, your question, and your company. With that, I'd like to hand over to CEO Árni Oddur Þórðarson. Yes. Welcome to our Q1 2022 results meeting. This is as well as Tinna said, announcement of new strategic pillar in Marel, where my friend Árni Sigurðsson will dive better into those matters after Linda will go thoroughly through the financial. I will touch on the highlights. This was definitely a busy quarter. This was a quarter where our team showed engagement, passion, unity. Furthermore, real partnership with our customers and our suppliers. Supply chain constraints on a very high level, Omicron on a high level in beginning of the year. To recap, lockdown in Netherlands, where we have one third of the workforce, was until 14th of January. However, we saw the quarter gradually moving in right direction after starting slowly in January and February, and we are seeing in black and white the operating result, the order intake, and the revenues in March vis-à-vis beginning of the year. I was asked to check if the clicker would work. Let's see. It was working. We can characterize in executive summary a record order intake, a new record in orders of EUR 420 million compared to EUR 400 million. It's a strong cash flow. We continue on a strong cash conversion rate here in the quarter, and we had a soft operating result. We should not shy away from that. We are not taking no shortcut. We are reshaping how we take accountability, the flow, and et cetera, in the company. We will see a gradual pickup in the revenues as we go through. We made 3x price adjustment upward in the quarter. The pipeline continues to increase. No wonder our pioneering solutions are right on hitting challenges and opportunities of our customers. Moreover, it's not enough to have a seamless flow, robotics, automation, digital. We have to stay with the customers and our decisive decision on ramping up ahead of the growth curve, the sales network, the service network is clearly paying. You can see it twofold. You can see it in the order intake, and you can see it in our sales and marketing cost that is above normalized level. This is a good cost. Moreover, in Q1 and Q2, we are having trade shows after halting them for two years under the COVID-19 situation. We will do more business through digital, through connections. However, our customers are thinking big, and our team is now staying with them at their sites, and there is a good gathering to compare the books with peers and customers in the trade shows. We are saying we will see for instance, sales and marketing cost higher in first and Q2, and then you will see it gradually going down compared to revenues for twofold. Revenues up and extraordinarily high sales and marketing cost in the first two quarters. Revenues EUR 372 million in the quarter. It's below our targets. It's colored by the output in January, February, when we were at a good level in March. I will deep dive more into this when I go through the industry highlights. Orders received, I touched on that. EBIT margin 8.4%. 11% in last quarter. We believe that we will see improvement in Q2, more in line with the Q4, what we are talking about, and then we will see gradually improvement in cost coverage with the revenue ramp-up. We will get closer to revenues compared to average order intake of last three,four quarters. You see now the order intake for EUR 2,400 million in last quarter. Leverage 1.2, and very important it was one in back end of the year. Cash flow is good. We paid for Curio, we paid our dividend, and leverage ratio at 1.2. It's more important to look at the leverage ratio post the acquisition of Wenger. That is a real move where we are utilizing our balance sheet, our trust in the market, trust from you investors, and trust from the banking partners that we are having. Poultry, very good order intake flow. Geographical mix good. We were not seeing large projects in this quarter, although the order intake is very strong. We were seeing a lot of smaller and medium-sized. We are expecting large scale projects to come in either in second or Q3 this year on top of the order flow of smaller and medium-sized projects. We are at 12% EBIT here. We were at 40% in last quarter, but more important, we are heading to the arena of plus 18%. We will see gradual pickup, real pickup in third and Q4 and going into next quarter as we have said. In the meat segment, we are having stable order intake between quarters. We are seeing Europe a little bit down in order intake. We are seeing softness, although we are having wins in China, while there is a real runway in the Americas markets in the meat segment. All in all, we had a strong order intake in last quarter, and we are having stable between the quarters and a EBIT ratio 6.7%. The meat segment was most colored of the cost inflation. It takes the longest time to filter out there and as well has the most effect of the newest sad events in Russia, Ukraine. I will touch a little bit more on that. If you look at the fish segment, I don't know how to say it, how much percentage increase it is in organic growth in order intake. You remember maybe that we had a rather weak order intake quarter in Q1 last year. We had as well weak order intake for three, four quarters in a row. It becomes apparent that in the COVID-19 situation that people needed to get acquainted outside of Scandinavia with fish in restaurants to increase the consumption, high-end restaurants, casual restaurants, and et cetera. The order intake is 100% higher than the Q1 last year. We could say it's at least 50% higher than normalized level in order intake. There is a wave with the poultry and fish where the feed conversion rate is lucrative in now investment appetite. We expect that we will continue in meat on a stable situation at this level, while we will see further increase in order intake in poultry and in the fish segment. The EBIT of - 2% in fish is not showing the underlying results. We are having one-off cost, non-recurring cost in integrating the companies, but the biggest effect in fish was a high-tech secondary processing solution in salmon, where delivery shifted in good cooperation with the customers between quarters. Those standard equipment, we book their revenues only at delivery, and this is quite a significant proportion of those revenues that is EBIT. We expect to be back on track very soon in fish and don't change anything regarding our plan in medium-term or long-term on the operational profitability of every single unit here in Marel. Touch a little bit on the Russia and Ukraine situation. We paused all new orders into those markets, into Russia especially, and we condemn the invasion. It was historically 4% of our revenue stream. This is in addition to the flow, and remember, we have a balanced portfolio, geographical portfolio, and I said it's having an effect on the pork intake in Europe. It seems to be escalating further the investment appetite in poultry in other geographical areas and definitely is escalating on top of the health-conscious wave and the sustainability wave, the demand for in the fish segment. I'm not going to have it longer now and over to you, Linda. Just to recap, the strategic pillar fully in line with our vision and sustainability, affordability, and let's a little bit not steal everything from my friend Árni Sigurðsson that will go through it, but I will take here the overall picture. What are we doing? Recap, we were a company that was founded in the middle of the processing steps in the fish sector. One of our biggest fortune has been having clear vision and then gradually expand our playing field, starting in secondary processing fish, expanding the playing field, and as well acquiring Scanvaegt to strengthen the position in fish, acquiring Stork to get a primary processing position in the poultry segment, and then MPS acquisition. Here we are acquiring and joining forces with Wenger that is at the secondary processing point in the plant-based proteins, in the pet food, and in the aqua feed. We know exactly how to become a first full line provider in those exciting market that are expected to continue to grow on a fast track rate. Just look at it, nutrition matters a lot. Proteins will be the center point of the plates, and now we are adding plant-based protein in addition with the animal-based protein. To give you a little bit insight into the first steps how we will go to the full line, we have weighing, sorting, inspection in front of the secondary processing. We have RevoFormers, we have coating, and we have ovens. grills and so on, Árni will go better in this post. Linda goes into the financials. To say the least, we are super excited. Same culture in those companies, same passion, and we will leverage growth in those sectors and meet the consumer demands for a healthy balanced diet and high nutrition. Good morning, everyone, and thank you, Árni. Like, first to comment a bit, like, on the changes we made in the executive team in March, with Stacey Katz took over as CFO. We are, like, in the transition period at the moment, which as expected is going extremely well, so you will soon see more of Stacey. But today I will go over the Q1 2022 results. Just to explain as well a bit about my new role, like, I've been CFO for eight years, and now in my role as Chief Operating Officer, I'm responsible for three pillars. It is the supply chain, which is really at the core of our operations, where we have, like, 2,700 people globally working on the supply chain within Marel. My focus there, like, in the immediate beginning will be on supporting the revenue growth. Like, there is high demand for our products. We need to grow revenues. We are also focusing on digitization, automation within the supply chain area. In addition, there are, like, a number of transformation investments happening in this area for business that I will be following carefully. The second pillar within my responsibilities is on the human resources, which is driven by David Freyr Oddsson. Then the third focus area is on the operational efficiency, like driving improvements across the organization towards our midterm targets, which are of course a very important step for what's coming in 2026 and in our long-term targets. To shortly recap the quarter, record revenue, record order intake again, so like, clearly high demand for our products. We do see revenues at the level of EUR 327 million, which is like below where we wanted to be. Like, we need focus there to ramp up on the revenue front. We are seeing quite some complexity in the quarter, like the peak of the pandemic with absenteeism at the highest levels in January, February, evening out in March. We also see, like, inflation pressure, cost prices are going up, in addition to, like, the complexity we saw before, like, on the supply chain side with missing parts. Quite an environment our people are dealing with every day, but we are navigating through this, like, with the engaged team across the organization, and our focus is really on, like, following carefully the cost trends, pricing this more often into our own products than we did before, and then with the focus on scaling up revenues gradually throughout the years, also to improve profitability. You see that, like, we did step up on the OPEX levels a bit ahead of the curve, and that should then be covered also with a higher volume. Operational performance in the quarter at soft levels, 8.4%, and that's where we will be focusing on, scaling up on the revenue front. Leverage 1.2, but strong cash flow in the quarter. To dive a bit further into this. Now my slides are not working. Oh, okay. Good. Thanks. So good quality of earnings. You can see here, like, the industry split, the geographical split, and the business mix. Poultry now at a level of 51% in the quarter, going up from last year. You can see a bit of a trend now in the order intake in this quarter. We have fish at record order intake. We have, like, poultry at very strong order intake, and meat at similar levels as last quarter, so like slightly different mix coming up. Revenues by geographies, where we can see that the Americas are going up, counterbalancing the trends we see in Asia and Oceania, and like the comments we have made on also developments in China. Revenues by business mix now, like the aftermarket is around 40%, levels with spare parts at good levels in the quarter as they have been also like in recent two quarters. It will be interesting of course to see, like, the impact from the acquisition of Wenger on this picture. This is very important for us to have the good quality of earnings not being reliant only on one pillar. Soft operational performance, I mean, it starts in the gross profit level, which is at the level of 36% in the quarter. There, like, we are clearly impacted by a number of factors and the focus is on like, pricing that through. Like, we have a number of improvement initiatives to get the gross profit up. Then on the OPEX, S&M at the level of 13.8%. That is on the higher end. If you look at the order intake, it is at a level of 12.2%. You can say that, like, our investments in this area, like really stepping up ahead of the growth curve on the frontline has been paying off in stronger order intake in recent quarters. It will be interesting to see how this levels out then when we get the volume to a higher level. R&D at the level of our midterm targets in 2023. Like the main focus here is on the gross profit and the improvements there scaling up on the revenue front. Strong order book, you see that like, it is, if you look at the book-to-bill, it's 1.13, 44% of trailing 12 months revenues and order book at the level of EUR 619 million at the end of the quarter. Good foundation to work on higher volume gradually throughout the year. Earnings per share. Here you can see like that if you look at the earnings per share like in the quarter is around 2.87 compared to 2.82 same period last year. If you look at the trailing twelve months as you can see here in the picture you can see like we are holding quite a good pace here like despite the challenging environment also positively impacted by strategic moves. Dividend paid in Q1 is around EUR 38 million. The focus here continues to be like growing earnings per share faster than revenues. If I look at the revenue growth from 2017, the CAGR is around 7.2%. That means that we clearly need to step up in growth in the later part of this target period we have. Looking very briefly at the income statement, gross profit 36.1%. You can see that revenues are growing from the same quarter last year by around 11%, even though we say that we want to scale that up further. Looking at the OPEX lines, it's very clear like where the change is. It is on the sales and marketing. That results then at similar absolute levels as last year. This is like very critical for us. I mean, these are the midterm targets where you can see there is still a gap on the gross profit, and that's like where we have the main focus. That's like where we have initiatives ongoing, where we are focusing on improvements. You see there's a gap on the SG&A side, but that we think about that more like we are improving ways of working, but like we see that covered more with increased volume. On the balance sheet, two comments here, like on the asset side, we continue to step up in strategic inventory in the quarter, around EUR 27 million. Like otherwise, there's not much to mention here on the asset side. On the liability side, just to underpin like our leverage at the level of 1.2. The pro forma leverage after the acquisition of Wenger will be around three. But we will tell you more about that later in the meeting. Strong cash conversion. Operating cash flow at the level of EUR 33 million. You can see we continue investing in the business. Free cash flow at the level of close to EUR 15 million. We have said that CapEx will be around 4%-5% without R&D of revenues in the coming four years. That also relates to my comments on the supply chain where we like have transformational investments ongoing. In the quarter, you can see investments in subsidiaries. This is Curio impact that like we bought 50% of that in the quarter. Now we own 100%. You can see that dividends paid at the level of EUR 38.7. Just to underpin as we have done before, like these are the parameters we are focusing on constantly. It is the earnings per share, it is the free cash flow, and the net debt EBITDA leverage. Over to you, Árni Sigurðsson. Yes. Thank you, Linda. What I want to do is to share with you more insights into our two most recently announced acquisitions. It's Sleegers and Wenger. If we start with Sleegers, it's a very nice bolt-on acquisition that we closed last week. It's a Dutch company founded by Huub Sleegers in 1993 that focuses on basically interleaving, loading solutions and slicing solutions. It's a business with revenue around EUR 5 million and employees of 27, and they are basically based very close to our Boxmeer operations. It's very nice that we have kind of an additional location, kind of close to where we have such a heart in the poultry business and also close to our operations in Lichtenvoorde. We do actually share kind of the same passion, which is innovation. It is a very good cultural fit where we have a complementary portfolio. To kinda give you a little bit of more sense around the portfolio, it's a very natural next step into kinda strengthening our position in the case ready and prepared food segments. Kinda to give you a little bit of a sense, I mean, the loading solutions, that's kind of the application that is happening between our cutting portfolio and packaging, kind of getting the raw material or the end product into a tray and then to the packaging machine, and then labeling and so on. The interleaving also to give you a little bit of flavor what that really is, that's the paper that is often between the hamburgers or your plant-based protein, kind of just to make sure that the presentation of the material is in a good way and preserved for a consumer to be able to cook it. They also basically recently launched a very nice slicing solution that fits quite well into our portfolio. We're very excited around kinda taking this very nice bolt-on, utilizing our global reach and digital platform to be able to cross-sell and put it into our project. It's a very nice fit from that standpoint. If we look at the other acquisition, the Wenger, then I am extremely excited and really truly honored that the Wenger family chose us to be the steward of the Wenger business. It's a highly strategic platform acquisition for us to enter into new markets of the pet food, aqua feeds, and plant-based protein. They are basically a global leader in processing solutions in those markets and have a very extensive offering that is mainly around kind of extrusion technology, dryers and pellet coolers, which is really kind of to Árni's slide earlier, it's really the anchor point and the core step in the secondary processing that really controls the texture and quality of the end product. It is really kind of the core pillar that you want to build around, and Wenger is really strong in that market. They have a very long and impressive history. It's a company that was founded by two brothers in 1935, focused on cattle feed, and it was a breakthrough technology, and they've continued on that journey ever since. They were a first mover into pet food, which represents around two-thirds of their revenue. They were also a first mover into aqua feed, and they have a very attractive and strong portfolio in the plant-based market. They have over 500 dedicated employees. They're mainly based in Sabetha in Kansas, in the U.S., Valinhos in Brazil and Kolding in Denmark, which is kind of an interesting fact: like all these locations are quite close to our kinda Marel locations in those areas. They have a kind of long history of strong growth and healthy profitability. We're expecting revenues around EUR 190 million in 2020. EBITDA in the range of EUR 32-35 million, which is around kind of 14%-15% EBIT. This will represent around 10% of Marel's pro forma revenue and 12%, around 12% of Marel's pro forma EBITDA. It is also important to highlight that they have high quality of earnings. Over 40% of their revenue is in aftermarket, and they do have a very high return on invested capital. Wenger is a great business, and we continuously believe based on experience that good companies tend to be better than you think and bad companies tend to be worse. We're really excited around kind of having Wenger as a part of Marel for the future. Not only that, there's a very good strategic fit between the businesses. There is a strong strategic and cultural fit. We've had a chance to kind of engage with both the senior management and the second layer of Wenger, and they have a great culture, and they share a lot of the same characteristics as Marel, such as strong focus on customers and growth. They are committed to high-quality solutions and innovation, and they focus on developing their employees. It's also kind of the fourth pillar focused on those new attractive end markets, which results in a more balanced business model for Marel going forward, making the Marel business more resilient and stronger for the future. We're really excited around this pillar, and that we're able to kinda build that further. It might surprise some of you, but we do actually have a complementary product offering that will allow us to strengthen the value proposition towards our customers. We are selling into pet food today, even though we don't talk a lot about it, and we did establish a business development division last year. We do have, like Árni said, I mean, our mixing grinding equipment, forming, ovens, so on and so forth. These are actually key pieces of equipment that will fit very, very attractively with the Wenger portfolio. We're very excited around kind of building more line concepts to be able to offer towards our kind of combined customer base, as we're also seeing some of our customers in poultry, meat, and fish moving into pet food to utilize the raw material and the byproducts even better to increase sustainability. Our global reach and digital platform, our X factors, they will come and in good hands now as well because it will make sure that we can reach faraway markets better and also help us to accelerate the journey to become more proactive on the aftermarket. If we go through some of the transaction highlights, then we have agreed to acquire Wenger for a total consideration of $540 million. $530 million of that are a payment for the business on a cash and debt-free basis, and $10 million is a combination of Marel shares for our Wenger employees, as well as a contribution to a not-for-profit private foundation focused on continuing the Wenger legacy and commitment to the local community in Sabetha. The transaction represents kind of a 14x enterprise value kind of against EBITDA, and that's adjusted for a tax asset of $60-$70 million that is the result of goodwill that kind of is created as a result of the acquisition. That goodwill we can amortize and deduct for tax purposes. There is a real value there, and this is kind of discounted to kind of bring it to kind of current value. We do adjust for that to give you a fair representation of the multiple that we're paying. The acquisition is fully financed through our strong balance sheet and existing credit facilities. In a kind of pro forma, the leverage will be close to 3x net debt to EBITDA, kind of compared to our targeted capital structure of 2x-3x net debt to EBITDA. It is worth to highlight that we are in discussions with the selling shareholders to receive a partial consideration in Marel shares, and we expect that will be finalized before we close the transaction. We do expect closing to happen by end of Q2. The transaction, that's due to kind of customary closing conditions such as antitrust approval and shareholder approval of the Wenger family, but we do not expect any roadblocks to achieve that. That's it. We'll be going through the acquisition in more detail later today, so I encourage you to join us for that session if you wanna learn more. Árni, I'll hand it over to you now. Thank you, Árni. The excitement, personal excitement and inside Marel and inside Wenger is very high around this one. We have seldom in a process or get to know each other so well on all layers in the company. We have, of course, known Wenger out in the field. We have been working for some of the same customers. We have been following them. This year, we have met them 3x in Sabetha, Kansas, and talked to all people in all functions, both from Marel's side and the Wenger side, and it always become more apparent the opportunity ahead of us. Like I said, it's very important this well. This has always been on our radar here in Marel. We started in the fish. We moved into poultry. We moved into fish. Into meat and poultry. Three months after we closed the acquisition on MPS, that is equal in size and scope and revenues as as Wenger, our second-largest acquisition after Stork. In CMD 2016, we introduced our vision to, in partnership with our customers, we are transforming the way food is processed. Before, we had intention to become the global leader in poultry, meat, and fish, where we are, and we have endless opportunity to grow within that segment and become a greater partner to our growing customers and give our employees therefore growth opportunities. Remember as well, some of the blockbusters in poultry were invented in fish and vice versa. We are doing the same here. We are using the economies of scale. To have the focus, continuous focus, we will run the company on four pillars. In addition to poultry, meat, and fish, this is the fourth pillar. Like Árni said, we will go more in detail in this today in the meeting. This fits perfectly. The offcuts in the primary process of animal proteins goes into the pet food industry. Our customers are using the same distribution network to deal with the alternative proteins or plant-based proteins as the animal feed proteins and so on, the touchpoint there. You could say we moved slow. 2016 introduced new vision and 2022 closing our acquisition. We want to gradually expand our playing field. You have to have the best core technology and build on that. Even though we move slow, we have a track record of high double-digit growth per annum since 1992. We are lowering those ambitions down to 12%, but we definitely will deliver that with 50% in sales, service and software. Back to our business here and sales and marketing cost high. A lot of trade shows going on. Let's see the trade shows we are ahead of us and we are having the Seafood Processing Global in Barcelona now instead of Brussels first time. Anuga FoodTec coming up. IFFA, the meat show that is every three years. I've always see orders going down first six months before IFFA and then skyrocketing after that in standard equipment meat, and then we have the meat poultry show. Instead of I'm having it longer and free up space for Q&A, let's dive into Gudbjorg Heida just for a while in Barcelona and see the atmosphere. Unfortunately, dear customers, I would have loved to be with you, but we have other tasks here. We divide the forces. Let's hear from Gudbjorg Heida. Hello from Seafood Processing Global, and welcome to Barcelona. I'm standing here in our Marel booth where we have prepared a great show for our customers. We will be welcoming now customers from around the globe, and we can't wait to finally see them all here again. We are prepared very well. We've been working hard to making sure we have the right solutions, and we are now entering the conversation of making sure we meet the customer needs and we understand the ever-evolving process of the consumer. How will the consumer trends lie in the coming years? What is the importance of sustainability of a digital platform? To really make sure we have innovative solutions that meets those needs. Thank you. Now it's time for questions. Just to repeat, if you would like to ask a question, please do so via the conference call or email ir@Marel.com. Let's start with the online audience. With that, I'd like to hand over to the conference call moderator. Thank you, ladies and gentlemen. If you wish to ask a question, please press zero and one on your telephone keypad. The first question we've received is from Akash Gupta, JP Morgan. The line is now open. Please go ahead. Yes. Hi, good morning, everybody, and thanks for your time. I have three, if I may. The first one is on China. Maybe if you can talk about supply chain exposure to China, both directly and indirectly from your supplier base, and how do you see the current situation in China might impact your results in rest of the year as well as impact on your execution from orders that you won earlier period. The second question I have is more if you can elaborate your comment early on reshaping accountability. I mean, what was the thing which was not working before? When you say you plan to reshape accountability, what are the measures that you are talking about? The third and final one is on Wenger deal. I didn't see the number for synergies, so maybe if you can quantify whether there will be any synergy with rest of the business in any revenue or cost synergies. That's the question I have. Thank you. Thank you, Akash Gupta. I suggest that I start by taking China, reason for changes and maybe then get color from Linda Jónsdóttir on how excited she is about the changes and then Hannes start on the Wenger and maybe I back it up. China exposure. Let's start overall before we go into the supplier base. China is a growth market and will be a growth market for the next 20 years, at least like it has been in recent 20 years. We have been investing in China in the demo center. We are gaining ground and opportunities in the middle of the value chain to serve the e-commerce that is larger than in U.S. In a lockdown situation, e-commerce is even more important than before. We are on the right spots doing the right things. Regarding our exposure in China, it's much less than most capital goods companies in sourcing. Maybe we should have gone deeper into that. That was next in line after Slovakia platform, then we have Brazil platform and China platform. It is maybe the biggest exposure for meat, not sourcing, but we have had a business model to make what's inside the primary processing equipment in China, ship it to Lichtenvoorde, and then again ship it maybe to China or other places. This is invalid business model going forward anyhow, sustainability cost and et cetera, while the logistic have been five-10 folding. Overall, very small exposure to China in sourcing and manufacturing compared to other capital goods companies. Most important geographical spread on the business side that US is outweighing the China downturn. If there will be downturn for three more quarters in addition to last three quarters, it's the longest downturn, and downturn in China is lower growth that we have seen in 20 years, and it will continue to grow, and it will continue to stabilize. There are opportunities there. What we mean by increased accountability, flow and speed. You know what happened in the pandemic. You know the logistics challenges. Every single customer, every Marel peer, peers of Marel and others are changing the flow in the business. That's why we said one year ago, we will take our capital investment up to 4%-5%. I asked Linda to jump over in COO position to align those cross-functional activities and those investments. I don't trust anyone better than having been in the CFO position, and we had the luxury of Stacey Katz could move there in. We are reshaping as well when the flow is changing. It's more consumer-ready product vis-à-vis a primary production and et cetera, et cetera. When you change, remember we are growing company, we were EUR 130 million, going to EUR 600 million, going to EUR 1.2 billion. Some of you thought we were stuck too long there. Now we are going ultra-speed to EUR 2 billion, and our target is EUR 3 billion with three S's 50%. We are changing the way, and of course, you have to reshape the company. When you are reshaping, it's very important to stop doing what you used to do if you have a new way. That's why we mean by clear accountability, most likely a leaner middle management going forward and shorter communication lines. That's what we mean, and we are confident that we are moving in right direction. We are as well confident that our best-in-class customers are moving in right direction with solution from Marel. We need to invest like they need to invest. How is it, Linda Jónsdóttir, to be in the new role? No, it's great. I mean, I really like the core of the operation, so for me, this is like a great opportunity. I think also like when you go through such a period we're going through now, like where external complexity is high, you need to turn every stone on the internal side, like removing all bottlenecks as soon as they pop up. I do think like we both have opportunities to work better internally within our own matrix. We also have opportunities to work better with our external parties like our suppliers. Like a lot of things that we are focusing on, in addition to, of course, investing in our supply chain in line with our plans there. Like very excited about the journey ahead I mean, it's clear what needs to happen and I think also engagement, good engagement and excitement within Marel on our journey there. Looking forward to the next steps, I would say. Yeah. Maybe if I touch on the Wenger question, then we see Wenger as a very well-run business. Our main opportunities is really around, first of all, we need to kind of work together to expand capacity because their demand for their products has been very high, and they have a very strong backlog. We see an opportunity. If we expand the capacity, we can continue to drive that strong organic growth. We're not gonna go after kind of. It's not a cost synergy acquisition. We see more by far the biggest opportunity around kind of, first of all, more proactive service. Even though they are at a very healthy rate on aftermarket, they have been more reactive on the service side. We see an opportunity to move more towards a kind of proactive, reaching more proactively towards the customer. They have a very good kind of data and customer insights for us to kind of develop that plan. We've already kind of started those discussions. Also, on the complementary portfolio, I think that's really where we see the opportunity, that will then help us with operating leverage on the Wenger side to kind of improve profitability. Just to give you a little bit of an example, I mean, last year alone, we had a handful of individuals focused on the pet food market, and we were selling above $10 million into the pet food market, which was kind of very, I would say, just very touching the surface of the opportunity that we believe is there. We see there kind of the biggest opportunity, and we're really focused on kind of the customer side, how can we service the customer better, and we see that opportunity on the product portfolio side. Then if you do a good job with your customer, then kind of good things follow. Those are kind of really the things that we are focused on kind of value creation levers in this acquisition. We are not supposed to answer long answers, but to give you global reach in Marel is now European global reach as well. In the aquafeed business of Wenger, all of the customers are at our booth in Brussels, where Gudbjorg Heida was talking. Imagine as well plant-based proteins. If you are a smaller company than Marel, but a great company, and you think you are penetrating India with plant-based protein. Isn't it better to have the global sales and service network go local in India ready? Same applies to China. Plug in four people. Then you have to have the legal infrastructure, the finance infrastructure, the IT system and compliance system. We have it. Plug it in, test the water. Start with two, then add two, and you can grow. It increased the courage to get closer to the customer. Wenger is a good company that is close to the customers. Tinna? Yes. I think the next question is from an analyst on the conference call as well. It is from Klas Bergelind,. Your line is now open. Please go ahead. Thank you. Hi, Árni and Linda. Klas Bergelind at Citi. The first one is on the price hikes. Can you please remind us again about the rough magnitudes across services, projects, and equipment, and the lags from when you hike prices until it hits the P&L? I'm trying to model the likely effect from pricing towards the end of the year. We've seen several companies with longer lead time seeing this lag, and I'm curious how this can add up for you towards the end of the year, Árni. I'll start there. First of all, we admitted last year that we were too late to increase prices. We took a special price increase in Q3. Usually, we do it in beginning of the year. We should have done it earlier. This year, we did the annual price increase in January, then we did it in February, and then we did it again in back end of March. How it filters out is that we have a great business model. Aftercare business is 40%. In aftercare business, it takes, like, eight weeks to fully filter out. In standard equipment, when we are selling standard equipment like sensor into existing factories or the high tech in the salmon and et cetera, it take three-six months to filter out. In the project business, it takes nine-12 months to filter out. A little bit longer in meat than in poultry and fish, but average nine-12 months. It's good and bad. It takes a long time to filter out. Maybe you remember some of the short cycle, high gross margin companies that are not having quality of earnings with aftercare and not having the projects. They went nearly belly up in 2020. We didn't. We navigated. It takes then as well a little bit longer time to filter out the price increase. The good thing is, downstreams, the supermarkets, our customers and the et cetera, have been able to adjust their prices, and their financial health is good. There is an acceptance, and we have a pricing power due to our innovative product portfolio. That's the most important. Our aim is not to get above the price line. We are going to get on the fair price line, and then we are working on operational efficiency. We are more confident now that we will reach the 16% EBIT target than three months ago. As strange as that sounds when we are reporting 8% EBIT, we are at 11%, we have more grip on it, we are getting faster on the price line, and we are going to ramp up in revenues to cover the operating cost. No, thank you. I totally get how the business model works. I'm just more curious about the rough levels across the different three verticals, so we can sort of bridge the effect into year-end. Is it a mid-single-digit hike that we are gonna be expecting sort of coming through towards the year-end, Árni? Let's think about it at 11% EBIT rate that we were at in Q4. The journey to 16% EBIT is around 50/50 pricing and part availability on the other hand and operation. We believe that we are now in new equipment on correct price line, on a fair price line that takes this time to filter out. The standard equipment, the aftercare, you know the aftercare is 40%. We are not fully split the standard equipment and the big projects. We have said, though, that the proportion of the standard equipment is increasing, but then we said as well, large projects are coming in, and they are coming in then on new prices. This is the time, like, it takes to filter out and then operation is not only in efficiency, it's as well higher revenues against variable cost, not against the variable, but fixed and variable costs. That will have a driver as well, and then improve accountability and flow. This is the time it takes to filter out. Yep. All good. No, I totally get how long it takes. My second question is actually referring on the- Price line now. That's as well important. My second one is referring to your last comment there, Árni, on the margin gap from 11% to 16% rolling twelve months. I just want to sort of ask Linda as well here. I can see 200 basis points from increased operating leverage as you're invoicing the backlog, and as you ease some of the investments into the front and in the H2. That's under your control. Then we have 300 basis points left. That's the price increases largely under your control, as you say, Árni, and then the staff being off because of COVID, et cetera, creating under-absorption. Can we try and break that down? Am I right, you know, 200 basis points leverage and then 300 basis points coming from sort of price action, less COVID impact and so forth? Yeah, I mean, I think it's. We can't detail it out and, like, we can't go into the details but, I think it sounds like a fair assumption. I mean, it will be driven by a number of factors, but like the main pieces, as Árni also covered, like price is a big one for sure. Coming back from the pandemic is definitely another big one that will have impact. I think that sounds like a fair assumption, Klas. Okay. My third and very final one is on Wenger. It obviously seems like a solid fit, so a job well done. I just wanna come back to your comment that it will be accretive to your margin. It will be accretive today, but it will not be accretive to your 16% margin ambition. They are at 14%-15% today. Do you imply that Wenger can also improve the margin going forward? I know that Árni, during his strategy presentation, said it wasn't a cost case, but is there some operating leverage that you can capture? Thanks. Klas, it's a great question, but 17%-8% EBITDA level in Wenger is 14%-15% EBIT, and that's actually our historic rate in EBIT in 2017 and 2018. Marel is going to more quality of earnings 2023 than 2017, 2018, more aftercare revenues, and we can request more profitability because we have invested as well in our infrastructure. Wenger is at 14-15% EBIT as well. We are dealing with the same uplift in the EBIT there, not. Don't look at Marel at eight-11 now. It is 14-15% EBIT as we know it, and Wenger is as well 14-15%, and have been doing a great result in the recent quarters and year. Yes, we can drive the profitability with the global reach, with the complementary portfolio, and it's very interesting. For instance, in the plant-based industry, it's entering chapter two. We did saw a flatness for three quarters. We see a boom in the market again in beginning of this year. Just to recap, Beyond Meat, for instance, went on market 2019, initial price $25, closing price $67 first day, then $200, and then now around 30-40. This is how all new venture and industry are made, overnight success, 11 years, and it's very interesting time to enter into that. Not to Companion animal business is as well interesting, where Wenger is the undisputed global leader. Yes, we believe that we can drive it forward in similar ways. Perfect. Thank you. The next question is from Fraser Donlon, Berenberg. Your line is now open. Please go ahead. Hi, everyone. Thanks for the presentation. Fraser here from Berenberg. Two questions. Just on Wenger, kind of following on the last question, but you know, what is like the normalized margin of that business? Are they running at quite high levels because of the, like, trends through the pandemic? It sounds like they're not taking any pressure on their margin at the moment in the way you and some competitors are. Could you kind of just confirm that that's kind of a fair assumption to make? That's the first question. Yeah, I mean, I think that's a very fair question. A fair assumption to make. Wenger has been exceptional in running their business. This has shown very steady and solid profitability. This is not. I think we're very comfortable with that number, so I think that's a very fair assumption, yes. Okay. Thank you. And then the second question is kind of like a playing devil's advocate question, but if I look at the history of Marel, you know, like there was a number of acquisitions, you know, 15 years ago, and the idea was that you needed to restructure because there was a lot of duplication of costs, too many sites in the same place. Is there not a risk with the Wenger that that kind of becomes the case again? Or indeed, could you say that there could be cost synergies with Wenger? Because it sounds like you do have a big overlap in terms of footprint, you know, and proximity. Don't talk. Just be interested in your views on that. No, don't account for any direct cost synergies in this acquisition. It's a great company. You get indirect cost synergies when you utilize the global network of Marel. We are intending as well to go for capital investments in Wenger to make that sure, in line with what we are doing in Marel. Shortening the lead time, our hypothesis and discussion is that there is even more demand than the revenues in the Wenger solutions. We will back up this platform, and we will move forward on speed, leveraging the X factors and investing in full force in the Wenger, because the demand is high. You can read it in the news that people are as well, if we talk about the plant-based, center point of the plate is proteins. People will be flexitarian. Either you have the poultry, fish or the steaks or the plant-based, and then you have salad on the side. Less grain, less sugar. We need some capital expenditure. The magnitude is maybe EUR 20 million in the beginning, and then we will drive the growth. Not cost synergies. No disturbance. Okay. Thank you. as well. Thanks, Árni. The next question is from Andre Mulder, Kepler Cheuvreux. Your line is now open. Please go ahead. Yeah. Good morning. First question on the existing business. Next to price increases, do you aim to have also some cost savings in order to improve the margins going forward? Or is it just a function of, for example, the SG&A falling because of higher top line development? Next to that, we have some questions on Wenger. Possibly you will answer most of them in the presentation, but I still have a go for it. What has been the growth of that company? Can you mention any segment split of their sales or even on a geographical basis? Those will be my questions. Yeah. Perhaps I start on the cost question. Like, for example, like in general, like we will also focus on the cost base and like looking for opportunities there. Like, on the S&M itself, like their maturity should be like covered by higher volume because, like, we really took good steps in adding to the front line that we feel very comfortable with. Overall, just like coming out of the pandemic, we will be focusing on, like, making sure we follow the new ways of working, that we, like, don't travel too much. We keep to the internal, less travel, et cetera. Like, overall cost focus also to support our midterm targets. More maturity on the S&M side will just come from better cost coverage. Maybe to give you insight in duplication of cost now. We, you know, we have made a promise that we will have the platform and spare part distribution. It will be in a split second in three-five years that we can get the answers and the delivery times on the spare parts. We are investing in global hub in Eindhoven, we have regional hubs around the globe. Continuously, we are having a record order intake and deliveries in the spare part. This means that we are working in two system. This is a shape that takes three-five years to reshape. Same with the back end, sales in the region and in the business area. Digitalization is on ultra-speed. We can automate here. As well, look throughout the value chain, there is duplication of work by our suppliers and us, by packing it for spare part, vice versa, manufacturing and et cetera. There are structural savings, quite significant, that will be sustainable savings, not a quick fix where, like many other companies announce cost savings, taking down the people. There are structural saving opportunities that we will crystallize step by step now. Yeah. On the Wenger question, then basically what we are disclosing is that the historical organic growth since 2017 has been 5%. I think that's kind of a very fair number. We could have changed it one year and showed you a higher number, but I felt like that would give like a very fair representation, how you should think about the business, kind of what it's been doing historically. It's sometimes a little bit lumpy, based on the projects that they're selling, but I think that's a very good number kind of to keep in mind. On the segment split, the pet food is the largest segment with around two-thirds of the business, and that really represents their strong market position in that segment as they were a first mover and so on. Aqua feed is around 10%. It fluctuates a bit, but I would say around 10% is a fair number. The area of plant-based protein, either through textured vegetable proteins or high moisture analogs, that's I would say around 10% to just give you some idea on the mix. On the geographic split, Wenger is a kind of relatively U.S. heavy on the revenue side. Obviously big market there, the U.S. market and a very important market. The North American market is around kind of 45-50% of the revenue with Europe kind of around 20%, and then other markets kind of the remainder. You can just see that it's kind of U.S..,. Europe is kind of flipped compared to Marel and then opportunities also in the more kind of emerging markets. Kind of the global reach that Árni's been talking about kind of speaks quite well to that, they do have a strong foothold in the US, but with the reach and the ability and the infrastructure to build up a better service network and become a stronger maintenance partner, we see a clear opportunity there. Again, to look at Marel before we close it, four pillars now. The new pillar is the second highest profitability with 14%-15%, even though we were reporting 12% in poultry, it used to be 18%. Just to remind you, four pillars now. There is a new pillar with second highest profitability, and we need to drive all them forward with full line offering, increased value for customers and shareholders. Thank you. Indeed, many interesting questions raised here today. However, we will have to conclude here. I sincerely thank you for your time, attention, and continued support for Marel. We hope to see some of you back here online at 2:00 P.M. GMT, that's 4:00 P.M. CET, for more color on this new and exciting fourth pillar in our business model, the strategic rationale and growth opportunities. Until then, on behalf of the team, thank you and goodbye.