Good morning, and welcome to our second quarter investor meeting, where CEO, Arni Oddur Thordarson, and CFO, Stacey Katz, will go over the financial results and some key business highlights. My name is Tina Murphy, Investor Relations, and I'll be your moderator in today's session. I will cover the presentations and then conclude with Q&A. Hopefully, we will conclude within the full hour. If you would like to ask a question, please use the raise your hand feature in Zoom, or you can email ir@marel.com, and we will then realize your name, your company, and the question. With that, I'd like to hand over to Arni Oddur Thordarson. Thank you, Tina, and welcome to our meeting as well in the middle of the summer here in Iceland. Let's move on into the market and market performance in the order intake, and starting with the... It's okay. Let's go on the right slides. Welcome again. Let's go into the dynamics in the market. It has been an interesting period of softness in recent quarters, and now we are counting 4 quarters on a relatively low level. That is the longest softness in our market that we have seen since, to recap, 2009, we saw a softness in 4 quarters in a row in order intake. Then, we witnessed a high 21% increase in order intake in the following 12 months. We saw similar pattern, 2013, 2014, when we had a 3 quarters in a softness. We saw a 25% increase for the following 2 years combined after that. Underlying, we are in a growth business with 4%-6% growth in the market per year, and we have a track record of growing at 6%. It is nice to see, though, that we are ticking up from the low level, EUR 407 million in order intake this quarter. Activities are clearly improving, and market outlook is becoming more positive, and we expect higher order intake in second half of the year. We as well expect higher order intake in the second half of the year than second half of last year, meaning as well that the book-to-bill ratio will move above 1, compared to very close to 1 in this quarter. Behind the numbers are a lot of things. Geographically, we saw softness in now last 3 quarters across the board, globally. Now, we are seeing very interesting movement geographically as well. For instance, the wins in Latin America by the Loneg, in the beef, where it's very interesting, we are going from primary to secondary throughout the full line. Here, we are leveraging our local team in Brazil, Sulmaq, and as well, our high-tech solution from the Netherlands. We cost competitive, out there and et cetera, full line offering, in Latin America. We are moving forward. I will touch on that in China in a very interesting strategic partnership with Muyuan. It belongs to the third quarter. I will do it after the financial number. In second quarter, as well, we are moving forward now in this quarter in U.S. with a more sustainable solution that the U.S. market knows in the poultry industry, where we are now using air chill instead of water chill, reaping on the benefits from Costco, Bell & Evans, with higher line speeds and more operational efficiency. Maybe underneath as well, what I'm very proud of is how the chain inside Marel with our customers are working. It's paying off as well, the new regional distribution center in U.S. We are seeing delivery performance in the aftercare market improving as well. Lot of activities happening. It still such that it takes time to finalize from pipeline into orders, financial securities, or prepayment. Orders came in extremely late in second quarter, and some shifted into third quarter, even though we had them fully agreed, and we our business model is we never book a order unless it's financial secured and prepaid. All in all, market conditions improving, cautiously optimistic, we are seeing as well a pickup, and we expect as well as in the past, catch-up effect here in our order intake. Having said that, we are working on many axes to make our cost base permanently leaner. We have been investing in our infrastructure, making it more efficient. Additionally, we are ramping up and down between industries, ramping down, for instance, in primary meat, increasing the focus in the sales in secondary meat. To recap, in first quarter, we saw the dynamic shift of the consumers moving, trading down poultry over over to meat over to minced meat, prepared meat, and so on. Here, we are ramping up and down. We are taking on the cost, you will see the benefits of our action in second quarter going into third quarter. Our EBIT is only 8% in the quarter. If we start with the gross profits, they are at 35% level compared to 36% in first quarter. Underlying, this is improving. This is solely volume in second quarter compared to first quarter. Very important as well, looking ahead, we believe that all that revenues will be at similar level in third quarter or second quarter, and then start to ramp up in fourth quarter. If we go further into 2024, we could be seeing revenue levels at EUR 450, EUR 500, in that level. You have to bear in mind, we are here taking balancing act on the cost, making the company sustained leaner, and then being able to ramp up when we see the revenues ticking up again. 8% EBIT, expecting next quarter at a similar revenue levels at lower cost base, and then ramping up in next quarter in the revenues and seeing then operational improvements going forward. We will touch on our targets and how we lay them down. Give you first insight into how we are doing those things and investments in a transformative matters here, changing completely our aftercare and service business, while the food industry has been in a total transformation in last three years. The market is moving from global to regional, both in the global supply chain and in the food industry. People are shifting dynamically between meat and poultry and into consumer ready. Our customer want us daily with them, and we have been investing high scale in end-to-end spare parts, like the regional distribution center in U.S., and our global distribution center in Eindhoven, that will be operational now in beginning of next year. Capital expenditure on average 4% in first half of the year, that will go down to on average, 2.5% in the second half. Very important as well to pause a little bit in those high investments, because then we have more time with our customers. We take down as well, business-related costs, and we improve the free cash flow. 2.5% is above the industry standards. Give you an insight, you can read it here yourself. The warehouse in Boxmeer, improving the flow in poultry, operational beginning in second quarter, full efficiency we are coming to see in third and fourth quarter. Why are we doing this? In service, you can see that we are starting to reap the benefits. We have seen 12% growth per year in the service business. You see as well, it accounts for 47% in this quarter. I see it a little bit differently, because project revenues are going to increase in the coming quarters. We are, though, well above 40% in underlying spare parts, service, and software businesses here in Marel, in line with our strategy of taking it from 10% towards the 5%-50% 2026. Here, we are increasing the intrinsic value of Marel immensely. We are increasing the customer satisfaction immensely, and we are increasing the customer stickiness as well. Daily touch with the customer, we have never been closer to our customers. Going day by day through the opportunities and challenges that will increase the sales of standard equipment and the next projects that are down the line. Again, delivery performance on a good level toward our customers. We will get productivity going forward. EUR 800 million on annual basis, EUR 200 million times 4, trailing twelve months, EUR 767 million. Over to you, Stacey. Thank you, Arni. Thank you for joining us today virtually, as we go through our results for Q2. I'm going to start with an overview of the quarter. I'm going to focus on the quarter rather than the half a year, as I believe that's where you would like to have some more information in terms of the most recent financial highlights. Revenues, EUR 422 million, compared to EUR 447 million last quarter. Lower project revenues due to lower projects order intake in the last quarters, mitigated, as already mentioned, by another increase in aftermarket and spare parts revenues to EUR 198 million. Good and continuing progress on our investments in our end-to-end spare parts journey. Orders received at EUR 407 million in the quarter, ticking up from last quarter's EUR 363 million, with a book-to-bill of 0.96, closer to the parity level, though we would like to see this continue to increase in the next quarters. Pipeline is strong and outlook is improving in the coming quarters, though we are experiencing uncertainty in terms of timing of conversion of pipeline into orders. As a result, order book at EUR 575 million or 32% of trailing twelve-month revenues. Gross profit, still not where we would like it to be, impacted in the quarter, mostly by volume, as Arni mentioned. Good actions ongoing to see positive developments in this line item that I will cover in a bit. In the quarter, we did start to see prices easing when it comes to raw materials, stainless steel, et cetera, though it does take time for that to price through. For example, if you look at Marel design parts, we first take negotiations with suppliers, then it goes through inventory, and then to sales. Wage inflation remains at a high level. I am very happy to see that in both sales and marketing, and in general administrative costs, they are trending downwards on an absolute basis. EUR 7 million lower quarter-over-quarter, though the percentage is the same due to the lower volume. Good actions ongoing on streamlining that I will cover in a bit. EBIT of 8% in the quarter, or EUR 34 million. Softer quarter, as we had commented on last quarter, due to the lower projects revenue and cost coverage. Free cash flow at -EUR 6 million, impacted by the elevated investments and higher tax payments in the quarter. Working capital, strong collections in the quarter, though unfavorable movements on the payable side with some larger payments. Free cash flow as well impacted by the book-to-bill ratio of 0.96 regarding down payments coming in. Leverage stable at 3.5 times. While we would like to see this number go down, and we are working on continuing to get back to our targeted capital structure of 2-3 times net debt to EBITDA, we did pay for EUR 8 million for the E+V acquisition and EUR 11.7 million for the dividend in the quarter, as well as those high investments. Currency had minimal impact on borrowings in the quarter. Good development on the financing front that I will cover a bit later. We are committed to our targets of sustainable 14%-16% EBIT, made up of 38%-40% gross profit and 24% operating expenses. Throughout the last quarters, we have been asked about the changes in the environment that have happened since we set the targets in 2017. It is clear that it has not been an easy ride with a pandemic, supply chain challenges, geopolitics, inflation, and higher interest rates, so it's a very reasonable question. We believe that these are the right targets for the future for operational resilience. As well, the challenges that have come up in the last years have led to new opportunities in the food value chain. We have been working to achieve our targets despite the headwinds in the environment. There's quite a lot ongoing in the background by our team to get there, which I will go through. Gross profit, as Arni mentioned, at 35.1% in the quarter. Various initiatives being executed to improve gross profit, where, of course, you have orders received and volume, but beyond that, we have been strengthening our price- cost discipline. We are working actively on positively impacting the mix in relation to standard equipment, the growing aftermarket revenues related to our install base and our targeted investments that Arni mentioned earlier. In the quarter, we were diligent on balancing load based on our order book and removing the flexible layers in both the supply chain and engineering, as well as using natural turnover when people are leaving to not replace the headcount. We are focused on improving our portfolio and product lifecycle management and working on footprint optimization. Reason that I mentioned that in gross profit is because it's related to our manufacturing locations. On OPEX, 27.1% in the quarter, we have been reviewing our internal improvement projects to ensure we have clear prioritization and focus. We are focusing on reaping the benefits of investments that we have made in digitalization, and we have put in place stronger cost management when it comes to travel, consultancy, and marketing activities. We have reduced headcount and are focusing on a sustainable lower cost base. Part of the result of the actions mentioned is EUR 3.9 million of restructuring costs in the quarter, which was related to severance. Even though it is not easy, we were prepared and able to take swift action to lower our cost base. We adjusted for this figure to provide transparency into the underlying profitability. Further actions that we're currently working on include streamlining of Marel's locations in terms of the back end, our legal entities, and our warehouses, as well as procurement negotiation with savings kicking in. With all of the above, our latest management forecast for Q4 shows an EBIT of 12%-14% compared to our 14%-16% target. We are committed to a sustainable EBIT of 14%-16%. It will take us a bit longer to get there in the course of 2024, given the levels of orders received when they came in during the quarter in the back end, and due to some shifting between Q2 and Q3. What do we mean by in the course of 2024? What we mean is that we do not yet know the timing of exactly when we will hit our targets. We are committed to achieving it, both via top-line growth and lower sustainable cost base. By sustainable EBIT, we mean that once we achieve the 14%-16% EBIT, we expect to maintain that targeted level of EBIT going forwards, though there can be variability between quarters. There's not too much in addition to mention on this one, though good to point out, similar to Arni, that the 47% of aftermarket in the quarter is more a reflection of the lower project revenues and strong aftermarket than necessarily a structural move upwards towards that level. Aftermarket revenues continue to grow, which is what we want to see, though we as well want to see the growth in project volume as well. Let's now walk through the segments. Solid quarter for poultry, with 15.5% EBIT and 48% of total revenues. Orders received improved quarter-over-quarter, though not yet where we would like to see them, still being impacted by the environment at poultry processors, with some orders shifting between quarters. We do see signs of easing, as well as a strong pipeline and increased sales activity that we expect to convert into orders. Revenues down quarter-over-quarter due to lower project revenues. Good growth in aftermarket, which we expect to continue. Meat continues to face a challenging environment that is not moderating yet, as we have previously indicated. Meat at 6.3% EBIT in the quarter, with lower volumes. The good news in the environment is that there are a few larger projects that were received in North and Latin America, such as the Loneg order for beef in Mexico that Arni previously mentioned, which is highlighted on Marel.com. The timing of conversion of pipeline into orders in meat is harder to predict in this environment, though we have exciting opportunities and projects in there, such as Muyuan, which Arni will cover later on. Given the market conditions, meat has been proactive in adjusting the organization to the right size for the output, with actions executed in Q2 that we expect to see kicking in during next quarter. In fish, our revenues did pick up quarter-over-quarter on the back of a strong order book, which is good. Orders received in the quarter were softer than the first quarter level, heavier balance on salmon and whitefish, while the first quarter was the opposite. We do see ongoing discussions regarding resource taxes that are still impacting conversion of pipeline into orders. The fish team as well has been working to improve the product mix in terms of standard equipment. EBIT-wise, given that it is negative, it is very clear that we target margin expansion within fish. The team has been working on good actions in Q2 related to the organization and its global footprint, which are expected to kick in in the coming quarters. Fish is impacted by finalizing projects from recent acquisitions, which we are working diligently to wrap up soon. While EBIT is negative, which we do not want to see, we are confident that the fish team has taken the right actions and we look forward to fish trending positive. Plant, pet, and feed at 10.6% EBIT in the quarter, and 13% of revenues. Strong orders received in the second quarter, driven by a large order in textured vegetable proteins within plant-based in the U.S. Pipeline is solid and outlook remains good for plant, pet, and feed, with pet being the strongest segment of the three. Expectation remains that Wenger delivers in line with historical performance of 14%-15% EBIT for the full year. I already covered a majority of the income statements during the highlights. For the non-IFRS adjustments, we are introducing an appendix to both the press release and presentation that explains and provides the breakdown for adjustments. This is meant to increase transparency for our readers, so please take a look. Within the adjustments for the quarter, we have the purchase price allocation, of which the inventory uplift for Wenger has now been fully amortized. Minor acquisition-related costs and the EUR 3.9 million of restructuring costs, which are severance due to workforce reduction mentioned earlier. No other adjustments have been made. To make it clear, the purchase price allocation going forward is expected to be EUR 7.1 million per quarter, compared to EUR 12.1 million in Q2. Finance costs are elevated, as previously mentioned. Order book at EUR 575 million, or 32% of trailing twelve-month revenues. Both book-to-bill in the quarter at 0.96. For the first half of the year, 0.88. We do expect a stronger conversion of pipeline into orders in the coming quarters. Operating cash flow of EUR 27 million in the quarter. Working capital-wise, good movements on inventory and receivables. Unfavorable timing of payables in the quarter impacting cash. Book-to-bill as well, influences being below one. In the quarter, we used cash to pay the dividend of EUR 11.7 million, as well as EUR 8 million for the acquisition of E+V, along with the elevated investments that you can see here in the bridge, and taxes, which were at a higher level of payments, but were previously accounted for. We have been investing quite heavily in CapEx in the last quarters, and while we will continue to invest in our end-to-end spare parts journey, we have decided to ensure focus on customer centricity, to take the CapEx down to more normalized levels in the second half of the year. Focusing on reaping the benefits of our investments, such as the manufacturing parts warehouse in Boxmeer, which will be ramping up in efficiency. Free cash flow at EUR -6 million in the quarter, affected by higher investments and taxes paid. We do expect this will continue in the coming quarters with, first of all, down payments coming in from orders received, improved working capital, and then lower CapEx to move forward towards our targeted capital structure. We recently announced a two-year extension to our EUR 700 million revolving credit facility, using the extension options that were part of the facility. We signed a new EUR 150 million term loan in order to create headroom for the upcoming Schuldschein maturity in December. This loan is expected to be drawn just before the maturity of the Schuldschein, so will not expect the leverage, ratio, or net debt. Very happy with the cooperation with our long-standing banking partners on this. We thank them for the support and trust in our business model and growth ambition. Here on the slide, we show the maturity profile at the end of June, as well as the new maturity profile with the extension, reducing financing risk, as well as the currency that the borrowings are in and the fixed floating profile of interest rates, which is about 62% variable, 38% fixed. Due to our current debt position, finance costs are elevated, around EUR 12 million cash out, although with the recent announcements last night and what's seen to come, it could be between EUR 12 million and EUR 13 million. On the asset side, increase in property, plant, and equipment due to the investments, as previously mentioned. Inventories are trending downwards, which is a very good sign. The inventory uplift for Wenger has been fully amortized, but we are as well seeing a reduction of our inventories in our efforts to rebalance our working capital, and we will continue to work on that. Good movement on trade receivables in the quarter with collections. Borrowings, we already covered. Contract liabilities related to down payments coming in. Trade payables don't look like a big difference if you look at end of the year, though they have gone down, if you look at end of last quarter, as there were numerous items parked in the payables and the not yet due bucket, which were then paid in Q2. Leverage at 3.5 times, as mentioned, as same as the end of Q1. Already covered free cash flow and leverage, we'll just look at earnings per share. Trailing twelve months earnings per share is impacted at the moment by higher financing costs, the higher purchase price allocation, the write-off of the Stranda investment last year, and higher costs associated with investments. We do expect to see this improving with lower purchase price allocation, some of those one-offs that will be dropping out of the trailing twelve months, and lower costs associated with investments in the back end of the year. Back over to you, Arni. Thank you, Stacey. Let's move on and give further insight into our wins in the market. It has been very nice to see the activities getting up again, for instance, in China, that I will touch on now. Moving one slide. Before we go into China, it's healthy to recap our successes around the globe, how we have been growing alongside our customers, by that giving our people as well, opportunity to grow alongside ourselves. Rothkötter is producing today equivalent to 40% of the German consumption in poultry, growing alongside Aldi, Lidl, and so on, into Italy and Spain. We started 2002, 2003, in that partnership, Marel and Rothkötter. He was moving from the feed mills into growing poultry and into full line offering at higher operational efficiency than the industry, at more sustainability, and so on, so on. 15,000 chicken per hour and five lines, just to give you that go into multiple differences in consumer-ready products that is demand-driven and on right time, right place. Muyuan in China, to give you an insight into that company, it is a remarkable startup two decades ago. This company is then listed on Shenzhen 2014, and has been growing six times since then. All of the company thinking is to take care of the animals throughout, based and take care of the grow up and sustainability based on data and intelligence. There are 150,000 people there. There are 1,000 people in innovation, focusing on innovation products. They are highly automated in the feeding, breeding, and then they partner with Marel in primary processing. We built 11 plants with them in the years 2019, 2020, 2021, and into first quarter 2022. Remember, African swine fever, where the livestock went down by half in China, we started to export from Europe, we, the value chain, and so on into China, but now it's building up again. Now we are back on track with much more extensive strategic and innovation partnership on how we will assist Muyuan in going further downstream. Today, Muyuan, with our 11 projects, processing primary processing, one-third of what they breed. The rest go into the wholesale market. The strategy of Muyuan is to produce the waste majority. First of more, starting in the breeding, going back to the feeding, and then going into the primary processing. We are planning together to go together, and we supporting them, but through innovation partnership, like we do in Vísir in Grindavík, here in Iceland, with Rothkötter in Germany, to make a customer centers around, for instance, Beijing, Shanghai, and across China, to make a retail ready and primary cuts that are delivered on right time, on right place to the customers. The buying patterns are changing a lot in China. 50% of the world consumption of pork is there, and people are cook, dining at restaurants, ordering online, and et cetera. 50% is still in the open market, that's more the elderly generation, my age and up. People 35 and younger, very seldom cook at home, the pork rather than the poultry, and they move to restaurants and at home, and now we have to make it consumer-ready products and move closer to the value chain. This is a long-term agreement. We are talking here about steps until towards the 30, towards 35. It's not this high scale, big and extensive agreement. It's not in the order intake as such, it will come step by step by step, towards 24, 25, 26, and onwards. This has been my dream and many other dreams, is to go into closer partnership with our customers, like we do in the U.S., like we do in Germany, like we do in Iceland and Norway, and lay out the plan of how we transform the value chain. It's exciting times ahead, and there is still, around the globe, preference, number one preference, is a locally produced. That's the same in China. People have a price premium for locally produced, and here we are dealing with a leading company in this space, 5% of the total pork in the world, and the leading global provider of solution, services, and software. GG, Quinn Moan, and team, and as well, thanks, Denver and team in China, our regional team. We are building up global regional teams proximately with the customers. Sophie and team in meat, it was a very nice days in China together, and very good insight I got into as well, the digital capabilities in the breening and feeding, and how we can then interlink the whole value chain and get closer with digital and traceability to consumers. The dynamics in the value chain have been very high in recent years and volatility. You have heard me saying, for Marel and for our customers, the only way forward is to be a specialist niche or vertically integrate, continue to invest in the infrastructure and continue to invest in innovation. We have seen many out there that are extensively just in one piece of the value chain, not weathering out after two, three quarters. The power curve in the value chain moves between primary process, secondary processing of prepared foods, as well into farming or to the customers. To recap, the consumer inflation has been very high in the food industry until every consumers were looking for just availability. In beginning of third and fourth quarter, consumers started to trade down on a speed and requesting lower prices. Finally, farmers got a little bit higher paid. Now in the processing sector, we are the material inflation is though overall moving down or stabilizing. However, the wage inflation has never been higher on global scale. I know Icelandic people don't fully get that because the global world is now on Icelandic wage inflation, around 6% a year. There is more pressure than ever to automate in this industry, and we are foreseeing, therefore, the catch up effect going forward. Wage inflation is as well such that Marel needed and needs to go at speed in automization and digitalization of our own operation, and we need to do more with less. It's a balancing act, how we do it, and like we say, we believe that the orders are starting to tick up. Disclaimer, hard to predict quarter by quarter. We will be seeing next year, though, some levels of EUR 450 million-EUR 500 million. Bear in mind, we are steering our cost levels as well in line with that, because we want to wrap up with sustained lower cost base. Having said that, it's unfortunate that our management forecast is now standing at 12%-14% in fourth quarter, compared to targets of 40%-60%. Nothing has changed in the total picture. The growth drivers are unchanged. We are not going to cut into the bone to get short-term financial result in fourth quarter. We are focused on the sustainable 40%-60% EBIT range that we believe we are going into. Sustainability and stableness will come with 40% up to 50% service revenues, already above 40%. We have been investing in it, taking one-off costs. Now it's time for harvesting and getting higher productivity. Balancing very well between industries, and first time, we have seen all industry in a softness, or in all geographies, but our model is playing out, and you saw Mexico, China, and we're heating up again, the poultry industry in U.S. Q&A. Absolutely. Thank you, Arni and Stacy. Just as a reminder, if you'd like to ask a question, please use the Raise Your Hand feature in Zoom, or you can email ir@marel.com. Moving to the first question is from Claes Berglund of Citibank. Please go ahead. ... thank you. Hope you can hear me. Hi, Arni and Stacy, Claes here. First on the gross margin, it's getting impacted, obviously, by lower project sales. I'm keen to understand how price- cost is improving through the backlog as we go through the year. If you could please help us with how much pricing from earlier orders now sits in the P&L, and what the order pricing is on a rolling basis, so we can understand how pricing might improve in the P&L into the second half as these higher priced orders gets delivered. I'll start here. Just to recap what we have said, Claes, that we said that, you remember, we do know quarterly price increases. We have shorter outstanding records. We corrected the prices in middle of last year. The service revenue is taking only 1 quarter to filter through. Standard equipment, 6 months to filter through. Price- cost, more than 12 months filtering through, meaning we will have always stated, you will start to see that in second half of the year. We are not willing to quantify that, as well, of course, the softness in the order intake in last fourth quarter, is of course, the factor that is then taking down with the volume, the gross profits. However, new orders are at those new cost levels. PPI, the Producer Price Index, you're seeing it easing off and going a little bit down in recent 3 months, while it's up total 25% the last 3 years. In the Western world, not then in China, Asia, we are seeing that at 10% compared to the 25% here, and even seeing a deflation there. All in all, price- cost improving, and we said the inflection point would be mid this year. Okay, thank you. We stick to that. That's encouraging. Then moving on to slide 8, and you reiterate that you're saying that you target a higher share of standard equipment. What do you do when you have a customer that offering you a project? Will you say no to that, or do you think that the industry is moving in this direction in terms of standard equipment? Yeah. Standard equipment sales are both when we sell a full line offering based on standard building blocks, then we go into engineering phase of designing for our customers, but based on standard building block. What we are saying here, we should get as well, more standard equipment and standard lines as well in the secondary processing. We have been analyzing very well, how can we make it easier to do business with Marel? How can we make it effortless? Instead of our customer taking 3 building blocks to make a hamburger line, for instance, we have been making those lines out there. The market has been on a low level. We are in very close contact with our customers as well with our peers out there, the market has been on a low level, we have very good wins, like in the Accuro system, where we are blending the fat lean and so on. We have installed it with KBS in Australia, and it's going very well. We have as well, customers like Cargill and Grants in U.S. and Cranswick in U.K., now we have to reap the benefit. Remember, it's only now 9-12 months, that we have been able to take some of all the customer into the reference plants, because post-COVID, it was undoable. Therefore, we are getting as well, wins in U.S. now, because our reference plants of, for instance, Costco, has been open for our... The peers of Costco in processing, because Costco doesn't want to make all the chicken themselves and so on. We are doing many things in go-to market. We are seeing as well, focused portfolio and so on. I know it's a long answer. It's a high ambitious now. A lot of passion that we get the cake of the revenues correct, that our products are around 40%, service 40% and moving up. The standard alone lines will move from 10%-20%. Thank you. My third and final one is when you say a sustainable 14%-16% level, can you talk through what you mean with that range? Let's say that sales reaches the current level of EUR 422 million again in the future, i.e., EUR 1.7 billion annualized. Are you saying that you should be able to do the lower end of the 14%-16% if you go to EUR 1.7 billion again? Just to understand better what you mean by sustainable level. Thank you. I would say yes, that is what we're saying. We are mentioning, of course, there may be variability quarter-over-quarter, but what we're doing now is really to focus on a lower, sustained cost base to be able to also make sure we can adapt towards what the environment is. At the same time, make it absolutely clear, if we would believe that Marel would be a flatliner at EUR 4-EUR 4.50, then we would not be investing in the growth. We have a track record of 6% organic growth. You see our wins in the aftercare, you see our wins out in the market. The food value chain is moving. There is a high fluctuation between products in the market. We made a fabulous acquisition in Wenger last year, plant-based and et cetera. We had, like Stacy went on, a very, very interesting order in the textiles of soybeans that are the ingredients there, higher nutrition, low, more sustainability. We are in a growth sector, and we are going to win in the growth. We are balancing the growth, but sustained, yes, meaning less fluctuation, and the 40, 50% recurring revenues count a lot. I guess, just to clarify, quickly, finally, is what I mean is, of course, I really don't think you will flatline and stop growing, because then, I mean, the equity story would be slightly different here. What I mean is, if you would go back in a quarter to this level, because I think the challenge for investors right now is to try and understand the earnings volatility between quarters. I guess that is my question, really. I can understand that when we are having PPA as well, up to 4% of revenues, it is. I can understand that it's not easy to crack the code when you are analyzing the numbers. When we are having CapEx of 4.3%-4.7%. We are going into lower PPA in the coming quarters, lower CapEx as well. To answer the question, 26, if we would fluctuate from EUR 550 down to EUR 500, yes, we are meaning that we have more stability in the revenue base and our cost base, because our actions are not only to breathe in, breathe out now, but we are making optimization investment to make more agility in our operation. Having said that, it was clear what Stacy said, there could be quarter that, or quarters, that you fluctuate a little bit down, but we are playing on that bandwidth. Remember, we are still looking at our 60% EBIT target. We don't want to take away the volatility 2%, and have the bandwidth. The new targets are 40%-60%, and we are working after that. Yes, we are talking about more agility in the cost base, but Yeah, perhaps I would also mention, once we would achieve that EBIT target, it is correct, there can be some variability that we can't predict quarter-over-quarter, but we would then be looking at it more on an annual basis, let's say, going forward. I mean, that is what we mean by having sustainable EBIT. I do just want to answer, Claes, your question from before. We will always try to upsell a project from standard equipment to a project. When we talk about improving the mix and improving standard equipment, that's not in conflict with the projects per se. We do have different sales channels that approach the market in different ways, there are opportunities and venues for sales of standard equipment or two machines together, et cetera. That's more what we mean by that. Got it. Thank you. Okay, great. Next up, we have Akash Gupta from JP Morgan. Please go ahead. Thank you, Tina. Good morning, Arni and Stacey. I have a couple as well. My first question was on revenue progression. You mentioned. Sorry, can you hear me? Sorry. Yeah, sorry, the sound dropped off for two seconds. If you could please start over. Thank you. Thank you, Tina. Hi, Arni. Hi, Stacy. My first question is on revenue progression. You mentioned stable sales in Q3 ramping up in Q4, and then you talked about EUR 450 million-EUR 500 million for 2024. Just to come back on this EUR 450 million-EUR 500 million, is this the run rate you are targeting for 2024, which would imply annual sales in range of EUR 1.8 billion-EUR 2 billion, and correspondingly, that probably we should also think about 14%-16% margin? It's a very good question. Don't take it as guidelines for next year, because you do that in November or beginning of the year. However, I'm trying to take care all of us out of the niveau of trying to look at our cost levels compared to the 420 level. We will be around 420, maybe 410, 420 in next quarter, but at lower cost base and so on. Then we foresee the ramp up in the 4th quarter. How do we measure pipeline? We measure it with, of course, close contact with our customers. We are more closer to them. We measure 40% likelihood, 60% likelihood, 80%, 90% likelihood. We have as well some contracts that are lacking either prepayment or letter of credit and so on. What I'm saying, we are going one tick up. One year ago, if we go back to the beginning of the year, we were EUR 360 million in order intake. Then we had a record order intake in second quarter last year, and then we have seen, in my view, softness in four quarters. Softness is under EUR 450 million now, because that was the new niveau. We moved forward in a new niveau in the bracket of EUR 450 million-EUR 500 million, and so on. There is a need for our solution, and it has never been more need in the wage inflation environment to automate and et cetera. I was rather doing that than going to the guide guidelines, but it's not a coincidence I was using those numbers. Thank you. Just to follow up on these order figures, you said you had some old contracts which has been signed, but not booked because you are waiting letter of credit. Is it possible to quantify the magnitude of these orders? Like, is it low double digit, mid double digit? Just to get some idea in terms of what would have been the demand in Q2 if you haven't had this delay. this happened as well in first quarter and et cetera, and the magnitude there are like I always are analyzing that there are around 4 projects that are, you say, do they land in second quarter or first quarter, and then around 2 of them go. Our projects depends on industries, but in poultry, they are varying from EUR 10 million-EUR 60 million and up. we are talking about the mid and lower end, and that are 2, 3 projects that are shifting between quarters. when other projects, such as Loneg, came faster than we expected, to be honest, as well, when the customer was very firm on where he was, he was heading and so on. The market is a little bit changing to better, and we are seeing signs of that. Correctly, we are having some POs in U.S. that are firmly agreed agreement without prepayment. The reason we say as well, it belongs to third quarter, to give you a little bit more insight. Investors need to understand our cash flow model. Prepayments come in, and the prepayments of that order belongs to third quarter. As well, we don't start to engineer until we get the prepayment. That's why revenue recognition is a little bit delayed in third and fourth quarter. This is our model, and it has proved to be a much less, more return compared to risk. It proved that 2009, 2013, and it shows a little bit how diligence we are in this. Magnitude, yes, $30 million, $30 million, $40 million. Thank you. My final one is for Stacy. On slide eight, when I look at your margin bridge, you say that from Q2 to 14%-15%, you would get support of gross margin improvement of around 300-500 basis points. Can you provide a bit more color on this gross margin improvement and driver? How much of that is pricing versus, let's say, how much of that is better utilization of your production facilities, so you can get more operating leverage, and also, may not suffer from underutilization that you may be suffering in part of your businesses? Yeah, it's a good question, Kaj. I mean, I would basically direct you towards, like, the left-hand column on the gross profit margin improvement. Part of it is definitely, let's say, volume and then better coverage in terms of the manufacturing efficiency, et cetera. In terms of the price, yes, there is still price to filter through, I would not put an exact number on it, as Arne had mentioned earlier. You also have the continued growth of aftermarket, et cetera. What we have done quite well in the quarter is that once we did see that the orders were more coming in on the back end, we did take action in terms of also lowering our flexible cost base, you know, in terms of also engineering and supply chain. It is truly, let's say, a mix of those factors that are mentioned there, that is going to be what we need to do to get there. I think you can perhaps at least assume that the difference between last quarter and this quarter is related to volume. If you also remember, in Q1, I had also said the difference between Q4 and Q1, where we had a difference in revenue as well, like about half of that was volume-based as well. Hopefully that can provide some color. Thank you. Okay, next up, we have an email question from Felix Minnaar, from SFO. It reads: On the fish division, given another surprising negative adjusted EBITDA performance in Q2, can you please give us some indication on when this will turn back positive? Will it remain in negative territory in the second half of 2023? I can take this one on the fish, because Valka acquisition and integration is counting here. Valka team have different terms and condition in contracts than we and et cetera, so we have agreed with our customers that we are finalizing some projects out there. It has costed a lot. We have been working hand in hand with our customers. We are ticking now off some of those projects that we are finalizing. We expect that we don't want to time it fully, but that means that we are out of that territory. We need to get the order intake up in fish as well. That has been in our high margin business in Norway, has been turbulent due to the taxation. Now there is coming clarity there. Then we roll on, when we are having good wins in Chile as well, and so on. Having said this, Stacy went very well through that we have ramped down the cost as well, the running cost in fish. We will be not in 10%-12% in fourth quarter, but we will be in fourth or first quarter, close to the historical level of 5%-6%. Then we will work us through to get us above 10%. We don't want to time it. Remember, when we are talking about that, we want to go to 18%-21% in poultry. First stop in fish is 10%. Remember, another thing is that SensorX, the blockbuster in poultry, is invented in fish, and vice versa. Water cutter in fish, moving now into poultry and so on. Remember that in our business model, but unfortunately, we are here, and it has costed us more to finalize those projects out in the field. ... Perhaps not to exactly time it, as Arni said, because both we and the fish team are really looking forward to turning that towards positive. They are doing the right things. What I will mention is that when we refer to our management forecast in Q4, which is 12%-14%, the fish in EBIT is not planned to be negative. In terms of exactly when that happens and how it happens, these are our best estimates at the moment, but that is what we are working with. Okay, second question from Felix, reads: It's on the Wenger order intake. Any comment on order intake growth at Wenger in Q2 and visibility for Q3 and Q4? Some companies that are active in the pet food area comment about a deceleration in demand. What do you see in this end market? Felix, thanks for you are talking about less demand than from the high demand and et cetera. In pet, the market is very much looking the same way as the rest of the market. It is more sustainable production, it's higher nutrition, and et cetera, both. Remember, the extrusion technology can work in the pet and in the plant and in the feed segment. We are seeing, by combining the strengths of Marel and Wenger, that The pipeline is on a strong note. We are getting larger order and more remarkable in the plant here in second quarter. We see that we will land, at least that's the forecast, 14-15% EBIT for this year, and continuous steady out in the market in the order intake. This is our best case now that we are looking at, and we are very optimistic. We are getting very strong and positive feedback as well from our customers in the poultry and meat on this acquisition, because they are moving into those arenas. Overall, we are optimistic about this and about this sector. Okay, another emailed question that reads: Once again, we're seeing poor performance by Marel's fish division. In the last two years, Marel has acquired two companies, Icelandic companies, in that segment. How has integration of these two companies into the Marel operation been going, and what specific action are you taking to turn around your fish business? Perhaps I'll start. Mm-hmm. I am happy to be a bit more concrete here, because I do know that this has been negative for some time, and you are wondering about it. As I have mentioned a few times, we really believe that the fish team is doing the right things. If you look at the quarter, and things that have been in the planning for some time but were being executed in the quarter, fish has reduced its workforce across the board, both by using the natural turnover of people, but also by difficult decisions in some cases, based on how to make sure that they can have a lower sustainable cost base as well. The second thing, and we've mentioned it before, like, they are combining their manufacturing facilities here in Iceland, and good movement on that in the second quarter. Of course, when you have a segment of the size of fish, it is not very easy to carry the extra costs if you would have, for example, three manufacturing facilities in Iceland. The last thing is really on their global footprint in terms of offices and housing. They have been evaluating, I would say, quite diligently, and they are taking action to combine some offices and take decisions which will have effect in coming quarters. The footprint, of course, that takes a little bit more time to actually kick in, but in terms of the savings, in terms of head count, and as well in manufacturing, that should already start to kick in Q3. Very important to answer this. We have been finalizing the projects in Valka. We have already now taking the manufacturing of Curio inside here, Garðabær. We cannot have three manufacturing here in Garðabær. Remember, we are doing a fabulous standard equipment out there, fabulous line. The new filleting machines that is connected out there now, that is second to none in yield improvement, waste improvement, and et cetera. We are pumping out new innovation, and we are taking the fish industry to next level in consumer-ready products. It's easy to talk about only the numbers when it is -7%. I fully understand it, not satisfied with it. Harder integration with Valka. This is the first time we acquire company that is on a path in digital journey and et cetera. We are getting out of the woods there. I want to underpin what Stacey is saying. Very good actions that under the leadership of Oli that have been taken to get on a lower sustained cost base, focus more on what we are pumping out in innovation, getting as well, stabilization in the innovation cost in the company. If we look forward in general in Marel, you can see our success in the aftercare market, that we are going from 40%-50%, and it's very likely that we can balance out our innovation cost in 4%-6% instead of 6%, in the total, with pumping out the same. Here we are working on a diligence way in balancing out our costs and getting at lower cost base. We are focusing on getting our OPEX in total below 24% and our gross margin in 38%-40%. Okay, indeed, many interesting questions raised here today. The IR team is, of course, at your disposal if you have any further questions on the results or our growth plan. On behalf of the team, I'd like to thank you all for your time and attention, and, we hope you enjoy the rest of the summer, and we'll see you back here in Q3.