Welcome everyone to Atlas Copco Capital Markets Day 2021. The image you see in the background is Antwerp, and our intention was really to meet you all in person at our facilities. Given the circumstances, we run this as a digital event. Nevertheless, today's main focus will be on our biggest business area, Compressor Technique, and you will meet live from Antwerp, the Business Area President, Vagner Rego. During his presentation, you will learn about the market we operate in, market trends, new technology industries, and the strategy for long-term profitable growth. Of course, today you will also meet our President and CEO, Mats Rahmström, and our CFO, Hans Ola Meyer, and they will present the Atlas Copco strategy and an update on the business model. You will also hear about the trends we see and how we meet these trends, tangible examples of how we act in a changing business climate, where and how we contribute to reduced environmental impact. Last but not least, you'll of course also have the opportunity to ask your questions directly to Mats, Hans Ola, and Vagner. This is the agenda for today, starting with a group presentation with Mats and Hans Ola. After that, a 15 minutes break. When you come back, we listen to Vagner. We end with the Q&A session that is slightly longer this year. The Q&A will be done in a conference call format only. We will notify you about 10 minutes before the Q&A session. The numbers to dial in will be shown in the webcast player. I would also like to remind you that all the presentations are available to download at the webcast player and at our homepage, atlascopco.com/ir. We end the day at latest quarter past 4:00. With that, I would like to hand over to you, Mats. Thank you so much, Daniel, and I should also say welcome to everyone. I will take you to a slightly different setting here in the beginning to a living room, just to show you some of the applications that we believe that we perform well in, and we see them as some of the future segments for us as well. Starting with the mobile phone, excellent applications for logic and memory, so it's the semi division mainly. The screen is also manufactured under vacuum. It could also be a vision application for Industrial Technique. A phone normally holds 20 to 25 screws, so it's an Industrial Technique application as well, and there could be dispense application also for the electronics. That goes for many screens that you can see in the pictures or an iPad, for example. What's interesting about the phone is that we are all about to change to 5G technology. We will all over the coming years change that technology. Believe this is a good segment to be in. You can see the water bottle. We use compressor to actually make the bottle. It's the clean water. That's one of the applications I talked a number of times about low pressures. We are really performing in this segment as well now. We also think this is an add-on to our growth strategy. Of course, all the electricity, we are trying to go from fossil to electric. It needs to be renewable of course. We are in a good position for wind power, for solar, energy storage, battery manufacturing, and also hydrogen, which is where we are exploring right now. Light tower to the right side in this presentation could come with a diesel engine, but more and more common is also that you use battery technology there as well. We offer customer energy storage in that application as well. This family look very healthy, but also medical for us and pharmaceutical is very interesting. It's mainly right now within CT, but we can also see vision application here as well. Some of the more traditional, but big segments for us in this picture as well could be the clothing they wear. That's a compressor technique. I'm not going to bore you more. The last one is the crisps on the table. The next time you open up the crisp, you can see that the slight aluminum type, and that is a vacuum application. They put it there to keep the crisp fresh for you as well. You can see there is a number of pockets just in your living room where we have opportunities for growth. If I take you to the next slide, you can see the different segments where we have a strong presence today. What you don't see might be the segments we don't want to be in. We are kind of selective when we say, okay, we want to acquire something, or if we would like to start up some sort of development into a product. We really look carefully at the standalone attractiveness for a segment. We look at the value chain in that and where are the profit pools before we enter into something. It's not by luck that we end up in many of these segments. Then we benchmark that with what we believe that we are good at, being a leading technology company, offering service, among many other things. We know that this is also diversified in many segments, and we believe that a constant changing world, it's really important to be diversified, and that helps us with this, to have a quite stable performance. You can look at 2020, that we pulled everything together, and we believe that we continue to deliver a good result, considering the circumstances we had to work in. We used a lot of the things that we were diversified in terms of segments, in products, geography, and that really gives us the resilience that we are really strategically planning for, and of course, on top of that, we wanted to have the service there. If you look at this slide, and it's around 10 years, and without currency, this is actually in line with our target on 8% growth on an annual base. Why we perform is that we are really close to our customers. We have 300 customer centers around the world, and we make sure that they understand the customer's application, this is number one, and how we can create value for them. It's important for us to be closeness to customer, understanding application, and how we can take out cost through their processes. I thought I would show you an example from last year, when we had some more challenging environment, even deteriorating business. Let's meet up with John. He's Sorry, Robert. He is the GM for Compressor Technique in the U.S., and Jennot is running Leybold in China internationally for us. When they have their yearly planning session, we don't only talk about the business opportunities, we also talk about the contingency. Contingency for us is that, okay, what will we do if we are growing, but also what will we do if we are not growing? You can say it's like a pre-plan, a pre-approved plan for them so they can act quickly, in case of they need to do something differently. The leading indicators for us is leaning forward, looking at the leads, the visits, the quotes to see, okay, how do we see this business development, we take the action needed in terms of cost. To have that agility to adjust is important for us as well. At the same time, we don't want to eat into the muscles of the organization, when it comes to competence, digitalization, and R&D, we have maintained that, I think that is where we will benefit accelerating out of this difficult situation. It's a very tangible way to see how they actually operate and how a decentralized organization work. In the divisions, we ask them to look at product development, opportunity development in three horizons. They are responsible for the products. We say that we want to design our strategy to be diversified, agile, and resilient. This is what we have shown you. The other things that is very important to our strategy is that we believe that we have leading technology, and leading is defined by customers of generating value creation for them. It's not innovation just for the innovation's sake. It's really linked closely to our customers. Then we say that, okay, we can have many different products, but we would like to be in the products where we see that this, our product, might not be a big part of CapEx, but it's important for the customer in one way or the other. Then we tend to talk more about the performance of the product, what value it creates, and that is important to us. Leading position, meaning in principle that we can put the right resources into it to be number one in the world. To give us the resilience, we also look out for the opportunity in service to give our customer more uptime on their products. This is kind of the framework we work with, but number one is always people. The decentralized system that we work with kind of brings people up to take responsibility step by step. Just organizational structure actually helps people to develop into the leading positions in the group. We talked a little bit about how we can move and look at the more interesting segments. It might appear to be luck sometimes that we are in a specific segment, but it's quite a lot of planning, as I said before, in terms of defining what could be the profit pools in different segments. This is just a slide to say, well, okay, so if I'm the owner of the product portfolio, and they said, "Okay, we were looking at this electric vehicles for many years now, and now we have a very strong position there." You think about the Industrial Technique, but it's also, we will hear later, Compressor Technique, and it's also vacuum application in the EV car. This is something that we believe that we have a very strong position now that will accelerate when they roll out new programs. The other one is electronics. Could be Industrial Technique, it could be vision as well, could be dispense applications as well. Of course, electronic is something growing faster than GDP as well. This illustration is on the windmill. It could be solar, really to be in the position now for this fossil to renewable, I think we have lined up products and strategies also to benefit from that change in society. The next picture illustrates a wafer within Semi, I think the strongest link we have is to society being more and more digital, I for sure believe that they are quite early in this journey, I think there's tons of potential in the coming years as well. I mentioned before, clean water, low pressure is extremely important. As you know, we have focused quite a lot on medical, that has really continued to deliver better and better, including organic initiatives, also acquired initiatives. This is something that we have done, now what we're looking forward then, that is the global trends that we look at. We have identified four that we are adjusting to right now. The digitalization. It could be difficult to determine what is digitalization, but for us it's operational efficiency, how we run our own operations. It's how we connected customers that has been accelerated during last year, and I think it will never go back. The connectivity with the business model for service. Those are the three legs we stand on when we talk about the digitalization. Of course, it's a tailwind for the Semi division, for example. Environmental impact. I think there are two ways to look at this. Either you might see this as a threat and be a loser, and I think you might end up there if you don't act, because I'm not sure people would like to work for a company that is not focused on this. As we do, we do focus on it and we see more opportunities than we see threats to this. We believe that with the energy efficient product and the product portfolio that we have, that we will have this as an opportunity. I said from global to local, and we still believe in free trade. We can also see that the world is changing, we see increased protectionism, we see that the COVID situation meant that you need to shorten your supply chains. Here we say that, okay, we need to have a strong presence in the financial hubs around the world, North America, Asia, and Europe. This is how we build it now, and we make quite big investments in Asia to make sure that we can continue to be number one in our preferred segments there as well. ASEANization, difficult word to say, but we can also see statistically that the export import between the Asian countries are developing fantastically quick, and you need to have your talent and your value chain locally to benefit from that. Then you can say, well, the organization, we say normally Atlas Copco is a decentralized organization. I'm happy about that because we can act quickly when something changes. It could be something positive or negative, but there's an organization there ready to pick up this. We have the four business areas, but then what I think is the backbone of that is the divisions, the 23 divisions that we have. In the last Capital Markets Day, we had 21, now it's 23. It's a very scalable model to add on technologies or people or size. I think that is good. 97% of our people works in the line. It is really decentralized. We give them authority and the speed to act on new initiatives in the marketplace. One of the key responsibilities is innovation. We believe innovation drives the value for our customer and even more so value for our shareholders. Over the last 10 years, we have increased the R&D spend from 2%- 4% of revenues. It's essential for us to be able to go to a customer and talk about the value creation for them. We have close partnership with, I would say, almost all leading companies in the segment. We listen to them, we try to understand what the problems are, and we bring real innovation to them. Real innovation can only be determined by our customers. The other thing that is important for us is if we're going to deliver on the sustainability commitment, we need innovation or continued innovation. We have given ourselves the target to say that we're going to reduce our CO2 footprint with 50% until 2030. As you can see in Scope one, Scope two, including transport, we have a reduction of 28%, so we're a little bit ahead of our plan. Of course, we're also evaluating how we can bring it to the 2050 target. Right now, we are quite proud of what we have done over the last few years. The one thing that you might think about is that many companies, they think that they should go from fossil to electricity. That journey, that transformation, you can say that we have almost done that already. It's not a solution just to go from fossil to electric, you also need to go to renewables. Then we do the footprint of our CO2. You can see that in the light blue is our own, it's less than 1% of our CO2 footprint that comes from our own manufacturing. Then we have the suppliers and transport, that's slightly more. The biggest piece is the user phase of our products. This is why we need to be part of society as well as our commitment is to have the best and the most energy efficient products. We also need to be part of the society to make sure that renewable energies are available. In our own operation, we are somewhere around 45%, and it's not lack of willing in the other areas, it's more that it's not available to us either. We're in good position. We will continue to commit to having the best and most energy-efficient products. We said that can we put this in easier way to understand this, what we can do, because we also need to tell our own people so that they can join this journey and feel proud about working for Atlas Copco. We just listed a few products, one from each business area. The first one is VSD, an oil-free range product with the variable speed. Then they have the iXL from Vacuum and the battery drill from Industrial Technique and the portable then with VSD Technology as well. We said, okay, if we take this product that is the best we have out of an energy efficient point of view and say, versus a general product of the market, how much more efficiency can we bring? This is the savings in the lifetime of a product like this, one unit. Then if we apply that to the lifetime, and we apply that to where we think these products work from an application point of view, you can see that then we benchmark with something more tangible, so we said households, how much electricity do they need? Just with the VSD Technology there for one product, it's 1.6 million. You can see on the bottom one on VSD as well with the portable 1.5. When our people see this, they feel very proud, and they want to be part of this journey, and we challenge ourself to continue to deliver even better technologies going forward. We don't only measure financial results and the environmental impact, we also look at products, we look at people, we look at safety and ethics. That's also combined in the business reviews we do with all our companies around the world. The focus today is, of course, on Compressor Technique. I thought I would mention a few points also on the other business areas. If I start with a summary, the numbers you see are 12 months rolling here, which means that you have part, of course, of the COVID year into the numbers. When we look at the division or the business area, it could be that we say that we need stability, we're not happy with the result, or we say that we need better profitability. We never buy ourself out of a problem, we always try to fix it. If you are passed and okay on profitability, then we say, okay, you have a growth strategy. In the seven divisions in Compressor Technique, I would say that they are all in a growth strategy. What we're trying to challenge them with is, okay, what is the market share? What is the full potential per region and per product? We say, okay, let's try to go after that. We also go after transformation, like we could see to VSD Technology, can we encourage customer to bring something better in from a value perspective and from environmental perspective? Of course, we are also building new growth platforms like chillers, like filters, which also Vagner Rego will mention later today. Vacuum Technique, same situation, very happy with the numbers. All the divisions are performing, looking for new avenues for growth. Industrial Technique, the numbers here are impacted, of course, by the ISRA acquisition, but we're also happy here with the profit levels in all the divisions. Everyone is looking for new growth opportunities. In Power Technique, slightly different. We have three divisions that we are quite happy with and looking for new opportunities. There is one division that we're trying to find a better profitability, find our way in one of those. As you can see then, out of the 23 division we have, the direction for them is growth, 22 out of 23. Let's take a look at Vacuum then. If you look first at the different market trends, digitalization of society. I said it before, but I think I'll repeat myself. Yes, we can see big orders. It's swinging a little bit in semi. If I look at the 5G development, industrial applications, connected homes, connected cars, I still believe over time that we are quite early in this journey. I think there's tons of opportunities to come here. Miniaturization and complex manufacturing processes drives the vacuum intensity, so that's also positive for us. We can also see on an environmental and regulation that is more and more requested abatement system, but also very efficient pumps in their operation. Service is also a vital part. The pump is very critical for many processes, and step by step, as you can see, quarter- by- quarter, we are improving our performance in service as well. How do we go about this then? One thing is that a lot of this business is in Asia, so on a quarterly base, myself, we approve investments in the region. It could be machinery, it could be R&D, it could be in the value chain, but we are making sure that we have more and more of the value chain very close to the customers if they're in China, Korea or Japan, or anywhere else in Asia. We really believe that we need to have a very strong presence in Asia. We also talk about local for local. This is linked back to the globalization versus localization. The outcome is the same. We need talented people. We need more of the value chain to be present, otherwise you will not get these orders. Industrial vacuum. I think we are shared number one in terms of market share now, but we still believe that there's more to come. We are continuing to focus on innovation for our customers and improving the product portfolio step by step, and I can see that the numbers are going in the right direction here. I'm positive for that as well. What helps us a lot is that when customers have problems or they need help, that we are close with service. You know that we have divided in two divisions, then one for semi, one for industrial, to make sure that we are there also when things don't go as expected. That is something that is very much appreciated by our customer. We have 20 technology centers around the world. In those technology centers, they do service, they do maintenance, but they can also do assembly. I thought we would take a look at the video summarizing a little bit what they do in these centers. Welcome to our service technology center, where we deliver world-class service and maintenance solutions to customers who use our vacuum and abatement products across a range of industries. Our people form an agile and highly trained team, supported by a global logistics and inventory network that moves quickly and works seamlessly anywhere. Through these globally standardized processes, our sophisticated global network of service technology centers plays an essential part in the success of our customers. Our outstanding field service operations, intelligent products, and data management software provide them with critical support, all while adhering to the highest safety standards. Our dry pumps are designed with onboard controls that allow for data collection. This data tells us when it's time for the pump to be serviced. This is really interesting, it's really part also of our competitiveness. When we see that we can say, "Okay, we were very successful in this quarter, in this region," it actually comes down to the closeness we have with our customers, that we can always help them. This is something for us to make sure that we are number one for them. If you look at Industrial Technique, one of the things that we see, of course, with shortening supply chains is that you're looking at opportunities for automation. We will not be a machine tool builder. We can break up the line, help customer with station automation. Of course, this links very closely to the division strategy that we have, that we then can control the process with vision and still operate tools, for example, then. The other thing shift in this trend is, of course, to the electric vehicles, and that has also accelerated quite dramatically over the last year and a half, I would say. Everyone has a program today to establish themselves as an EV supplier. I drive one myself, excellent experience from one of the European manufacturers, so I think this development will go quick. The development went quite quick, but our efforts has actually been over the last 10 year to put us in the position to be in a winning position in electric vehicles. Renewable, this tool is actually specially developed for building the towers for the windmills. They bring this up. It's a traceable application now, where they can actually determine, just like in a car manufacturing, this is what we did. This is documented in a proper way. This is also part of the future where we see good potential going forward. Lightweight of vehicles brings us to adhesives, for example, self-pierce riveting as well. We have extended offer, and maybe the number one thing is the vision part, which we think have a good fit. We can see good synergies. It's also strong standalone business and something that develop with the tailwind, but we also can help our other divisions to develop in a positive way here. I mentioned before that the battery pack is something that is interesting for at least three business areas. We need to understand the application. This is still developing. Some acquire this package as is, some make them own, and we are breaking down every part of this process to make sure that we really understand how we can bring value. We see that as the new engine for cars and many other application going forward. Also here, we continue to focus on innovation and spend more and more on software, and the offer comes more from software than actually mechanical or electronic designs. I've asked Henrik to explain in a video again, a little bit how we go from sustainability to the EV market and how that impacts our operation in Industrial Technique. Let's show this video. The big focus on climate change is really driving this major transition in the global automotive industry, which is making itself future-proof. The challenge is that things are moving so fast. There are an enormous amount of new models that are being launched right now, and time to market is really, really critical. At the same time, the production setup needs to be scalable in order to grow with high demand, but also to be flexible and cope with new requirements that comes in the future generations. The weight of the battery is a big part of the total vehicle weight, and the heavier the car, the more energy it consumes. Engineers in future generations are really focusing on having more lightweight materials and more efficient production methods in order to reduce the battery and the vehicle weight. Here at Atlas Copco, we understand that we are still in the early stages of battery manufacturing, and there is so much innovation going into the future generations. The broad range of assembly technologies, in combination with the innovation teams that we offer, can really help vehicle manufacturers to take the lead in this transition towards electro mobility. All this combined means that we at Atlas Copco can be a strong innovation partner for our customers. I must say, it's fantastic to be part of this journey from a technology point of view, this shift from combustion engine to electromobility, and just to see how we are positioned us, but also work with the customer from a technical point of view. It's actually quite fun, I must say. On Power Technique, there's two trends that we are talking quite a lot to our customers, construction sites, rental companies. I just took a portable as an example here. They discuss more and more the CO2-neutral workplace. Luckily enough for us, we have already developed this mobile unit, which is electric then. We are also looking at the generators, energy storage. Do we need to bring a generator? We offer a couple of energy storage solutions today, but this is also something that we are looking at presently. The other thing is that the opportunities in digitalization and connectivity. Where is my product? Does it need fuel? How many running hours? Is it within the frame that the customer tool that it would be, since they're all mobile? It's all developing quite fast as well. Power Technique has a very, very strong position with the compressors and also with the specialty rental division. I thought it would be of interest to you to see what a specialty rental is. I should highlight, it's not a general rental company. We have no intention to be a rental company as such or compete with them. What we do is a full solution within compressed air, steam, we are developing nitrogen and oxygen, for example. Here I thought, again, we would take a look at the video, so get an insight to our specialty rental operation. Atlas Copco Rental is a trusted partner for the manufacturing industry. We are a worldwide leader in temporary air and nitrogen solutions. With over 1,000 MW air compressors in our fleet, including diesel and electric, you can rely on us at all times. There can be many reasons to rent. For planned maintenance, for unplanned circumstances, breakdowns, and emergencies. If extra air is needed for seasonal peaks or larger projects. Whatever your reason to rent, our 100% oil-free air compressors and dryers can get the job done. We are triple certified in ISO 9001, 14001, and OHSAS 18001, complying with the highest quality environmental and safety standards on the market. We will customize the perfect rental solution based on your industry's air quality needs and specifications. Both your process and end products are safe with us because no oil simply means no risk of contamination. With service available 24/seven, the continuity of your production is ensured. You can count on us at any time, and with over 140 locations worldwide, an extensive fleet is always within reach. We can offer you a total solution matching all your needs, whether for a few days or for a long-term contract. Do you need to have a solid backup plan? Our dedicated sales engineers can create customized contingency plans. After all, you are the expert in your industry, and we are the experts in temporary compressed air and nitrogen solutions. We are here for you. Do not wait any longer and contact us today. This is a really interesting business. A lot about servicing the customer in a good way. It could be scheduled maintenance, or it could be breakdowns, and you need to have people that are really listening to customer, really respond to customer in the right way. I'm also happy that it's split between construction customer, but more and more also industrial customers, which I find very positive. Now we will take a look at some of the financials, and then I will invite Hans Ola Meyer on stage. Thank you, Mats. It's nice to be here again talking to you all. I think that was a brilliant overview of the strategy and the business model, just like Daniel promised, I think. Let's see if this is in some way reflected in our financial KPIs, perhaps. First, a short recap on the latest results from the first quarter. It was a record order intake. It was, in general, a very strong quarter, actually better than our own expectations. The revenue was growing at a very strong organic growth over the same period last year, which in fact was not so much damaged, if I use that word, by the pandemic. I'm talking about the first quarter last year. Strong organic growth on orders, 18%, but also revenues 13% up. A solid operating profit margin and a good, strong operating cash flow. Last but not least, at the bottom of the slide, well, we can confirm that we still believe that also for the Q2, we will see the customer's activity level remain at the high level that we saw in Q1. Taking a little bit of a step back from the Q1, so to speak, Mats already commented on all our goals in terms of sustainability, et cetera. Let's look a little bit at our financial goals. There are not so many, and you see them on the slide. On the long-term target, I would say we are in terms of revenue. In the shorter perspective, you can also see from the slide that it has been a very challenging period, particularly with the 2020 pandemic, of course, and it does affect our numbers. In the second target where we talk about the sustained high return on capital employed, we're also at a good profitability level, no doubt. You can also, of course, appreciate that when you do recent big acquisitions like we did with ISRA and Perceptron in 2020, yes, it does affect. You get the full load of the capital cost, but you don't yet have the growth of the operating profit and the revenues going forward. Last but not least, the stable cash annual dividend distribution is what you can see and where we are in relation to the target. I think this slide for me is very important in trying to, in a financial way, summarize what is strong with Atlas Copco. It shows a growth combined with the effects of an agile organization and a resilient organization. Back to some of the points that Mats made just a few minutes ago. At the bottom of the graph, you see some gray bars there. This is the very moderate, in terms of number, recurring investments that the group needs to keep the machine going and produce the growing profit and the growing cash flow. The way I look at the slides is saying that, well, we are a growth company. That's our main ambition. If for some reason there is not a growth in profit one year, at least we get the growth in cash flow. That, I think is the healthy combination of the two. One recurring question we get all the time is about, what about the currency effect and so on. This slide is there to show to the right that yes, indeed, we have a dominating exposure between the US dollar and the euro. It means that in a strong dollar environment, it's extra good for Atlas Copco, so to speak, which hasn't been the case in the last 12 months, as you know. To the left, you can also see that if you eliminate the profit impact on the operating profit margin that we talk about all the time, there is hardly any difference, as you can see, and lately, no difference, basically. I understand that for an analyst writing quarterly updates, it's still important, of course, to understand this and see the effect of it. For a long-term investor, I'm one, I don't see that there is a big need for drama in this respect, and that I think the history is there to provide some comfort in that statement. We talked about dividends, and I'll return a little bit and just repeat again that at the end of the day, if you don't have cash flow, at least over time, then you wonder a little bit. I think we have also the ambition to give to the shareholders a stable, growing, and predictable cash return. In this slide, contrary to the target, we also added the extra cash distributions, in our case, through the mandatory redemption of shares. Then it produces a pretty nice cash yield, as you can see, about 5% over this period of time, which is pretty good in today's environment of interest rates, et cetera. However, cash distribution is fine, great, but for me, the best way to end the financial KPI section for a company like Atlas Copco with targets for growth and high return on capital employed is, of course, yes, total shareholder return. We're, of course, extremely pleased to see this development. You can also see that there was a sort of a hiccup when we actually dividended out Epiroc to the same shareholders. Apart from that, a pretty stable growth curve over the last 20 years with also, as you can see, a nice 18% annual total shareholder return. Before I hand it back over to you, Mats, and being my last Capital Markets Day, yes, I thought it could be appropriate to underline, in my view, one other success factor for the Atlas Copco journey. What you see here is an example of a strong and consistent strategy on the slide right now. As you can see, if you look a little bit deeper, it's a composition of slides from 1998 Capital Markets Day till today. Even if the font differs, even if the visual identity differs, even if the words even differs, I trust that you all can agree with me that it proves a consistent and strong strategy. With that, I leave it back to you, Mats. Thank you, Hans Ola. It might be your last- It might? It is. It might be. It will be. No. You'll do one more quarterly report with me. Yep in Q2. He has done 111 and will done 112 before he's finished. Yeah We will have a new CFO. Let's welcome Peter Kinnart on stage then. Thank you. Thank you, Hans Ola. Thank you, Mats. This is Peter. He's been with the group for more than 20 years, with a wide experience from the group, so I'm very happy that he will join me as the CFO. I was thinking, Peter, wide experience, two months in Sweden, what are your expectations on this new job, and what have you learned? Thank you, Mats. I think so far the transition from Belgium to Sweden has gone very smoothly, and I'm very happy to be here. I'm working closely together with Hans Ola, particularly now, of course, to make sure that we do a very good handover and that I'm very well-prepared. My main focus right now is to talk to a lot of people who have given me all a very warm welcome, I have to say, so thank you for that to all of those. I'm focusing on making sure that I take a deep dive into the business areas that I have been less exposed to and less familiar with in order to make sure that I am very well-prepared. Okay. For Q3 then. For Q3, indeed. Okay. I know also that you have a lot of financial experience, but you've also been general manager for a customer center. Tell me a little bit what you have done in Atlas Copco? Yes. I have started a bit more than 20 years ago, indeed, Mats. Yeah. I started in Belgium, as I'm a Belgian national, in a product company at first as a controller. I worked in one of our very first specialty rental companies before moving abroad, when I spent 10 years approximately in different countries in our customer centers. Okay. in Europe before taking on a global role in a division, service division, and in an equipment division. My last experience was being a business controller for our Compressor Technique business area. Okay. Thank you very much, Peter, and really welcome to the team. Thanks, Mats. I believe this is my last slide, at least, I am trying to summarize the session that we have had right now. To invest in Atlas Copco, I believe that you get a diverse business model ready for change, market leader in most of our businesses and segments where we focus. A very strong commitment to innovation. It is for products, but it's also for processes and how we work in many other areas. To give us the resilience, we have the service as a backbone. You could see from CT's 43%, was 27% something on VT, and similar to Industrial. It's a strong backbone we have there. Strong balance sheet, ready for acquisitions. There are the financial strength in place. We call it world-class people, and I think it's more the system that brings people to get an early responsibility, a very clear accountability, and that brings up a lot of good leaders in the group. What you might not see, you might see it a little bit later in Vagner's presentation, we also worked quite a lot on the standardization and modularization of the flows we have in our factories to make sure, and you also know that we have an outsourced model of non-core components, and that makes us a light operation from an asset point of view. We've also proven over and over again that we can deliver, although that we can see the market condition changes slightly. Now you can see also that we have done really well on sustainability. We will increase our ambition, and we do see that as an opportunity going forward. Thank you so much, and welcome Daniel back. Thank you very much, Mats, for your presentation. We will now have a short break, and looking forward having you back in 15 minutes. [Break] Welcome back, everyone. I hope you had a good break. We will connect to Belgium and listen to Vagner. Hi, Vagner. Hey, Daniel. We are now connected to you in Antwerp. It would be interesting to hear what has been your experience the last year interacting digitally with your own organizations and your customers? Yes, indeed, Daniel. We all have been through very difficult times. There are some positive aspects because we have learned how to communicate with our customers digitally, but also we have increased the knowledge that we have on those digital tools, and now we also foresee to continue to use those digital tools to further engage with our customers. Very interesting to hear, I think now we are very keen on listening to your CMD presentation. Please, Vagner. Thank you, Daniel. Talking about Compressor Technique. As you have introduced before, Daniel, we will start to the facts in brief, look into markets and business fundamentals, go through our strategy once again, and see how we foresee to continue to grow our business worldwide. Our facts in brief, talking about Compressor Technique and market trends, we continue to focus on energy efficiency products, and there is a good demand for that. Like Mats has said before, this demand that we have now is connected as well for CO2 reductions, and our products are well-suited for that, and we see a good trend on that side. The fact that we work with total solutions, we not only want to sell a compressor, we want to sell the air treatment system for that compressor. Apart from that, we also want to have the distribution network part of that ecosystem. There are lot of opportunities in that area, and we are present on that with our approach towards total solution selling. Also, digitalization and automation, it's a trend where we are also benefiting from, and we see more and more new applications in compressed air. All that has led us to a quite good result over the last years. Of course, we were impacted last year with COVID, as you can see, especially on Q2. Since Q3 we have been recuperating. In Q1 this year, we had a record Q1, it was the best quarter ever for Compressor Technique. That was very good. If you look where the business is coming from, you can see in our orders received, they split now. We have 33% coming from Asia, with a strong contribution coming from China, of course, and India. Europe, also very strong contribution because Europe is still the biggest region for Compressor Technique, and also is presenting a good organic growth. North America and South America now representing 25% growth, 25% contribution in our orders received, and a good organic growth as well. Going forward into some market and business fundamentals, which is always good to remember for Compressor Technique, we are in a quite diverse marketplace with being present in a lot of market segments. Compressed air is often referred to as a fourth utility in the manufacturing industries. We have a good presence in several market segments. We have a large range of technologies. We use several technologies to approach our customers with our total solution, and we are more and more looking to new applications of compressed air to provide our total solutions. We also see more opportunities and also present in different gases. We talk a lot about compressed air, which is the majority of our business, but we are also present in other gases that requires compressed air, and sometimes we are also producing other gases like nitrogen and oxygen. Also, we have a strong service organization with global presence, more than 4,000 technicians worldwide. We have been repeating that we are in a quite diverse marketplace, but things change, and let's see what else is happening in the market. Yeah, as you can see, a lot of changes in the market, but we also see these as opportunities. Going forward, how do we see the market developing? I split in two ways here for this presentation. We have our traditional markets that we talk a lot about. You have there food and beverage, pharmaceuticals, and other medical, several market segments. How do we grow in these traditional markets? The way I see, there are a lot of room for improvement if you have GDP per capita growth. There are several developing countries with still a lot of room to grow the GDP per capita. How do we benefit from that? If you have GDP per capita growth, consumption will also grow. That will add to more manufacturing to be done in that country, so a lot of things to be produced. Compressed air, as it's utilized in several industries, we benefit from that. It's not only that on traditional industry. If you see now the focus on climate change and the need to reduce the CO2 footprint, the demand for compressors with higher efficiency, it will all increase, generating opportunities for us to upgrade the current installed base with equipment that are more efficient because they can reduce the operational cost of our customers and also support our customers in reducing their CO2 emissions. We benefit in the traditional industries. It's not only that. There are also new technologies coming to the market. There is also the need to stay more competitive. To stay more competitive, companies are automating, so implementing robots and other things. Myself, I have an example in one of our factories where we used to have an assembler, a person assembling the compressor. Now we have a module, a full automated cell, where instead to have a person doing the assembly of the compressor element, I have a robot. This full automated process, we have a lot of compressed air utilized to make the automation possible, to make the movement of the parts, to pick and place. Before we used to have a person with an electrical tool doing the automation. Now we have still the electrical tool, being used by a robot and several other automated functions done by compressed air. This generate opportunities for us. Automation, Industry 4.0 also will represent good opportunities for the future. There are also new industry. We have heard quite a lot about the car industry. I will repeat that once again, not because I believe that the car industry will be the major contributor of Compressor Technique, but for me it's a good example when there is a transformation in an industry, we are also able to capitalize on that transformation and support our customers in that transition. Specifically on the car industry, there are quite a lot of demand for compressed air. We have now electrical vehicles, so you have the battery production, and during the full process of the battery production and the full supply chain, there are opportunities also for us. Let's see how we utilize compressed air or where do we see opportunities in this transformation for electrical vehicles. Within the automotive industry, the switch to electric vehicles is in full swing. Each electrical or hybrid-driven vehicle requires large amounts of lithium-ion battery cells. Keeping operational costs low and minimizing the carbon footprint are key in the battery manufacturing process and across the entire value chain of the electrical vehicle production, as it will increase the benefits of using electric-driven vehicles over fossil fuel vehicles and automatically creates a larger global demand. The applications within the battery manufacturing process require dry contamination-free compressed air, nitrogen, oxygen. A combination of multiple Class zero oil-free air compressors and desiccant dryers are the ideal smart air solution to ensure high product quality at lowest possible costs. Up to 94% of electrical energy is converted into compression heat. This heat can, for instance, be reused for heating the buildings or within the manufacturing process for drying and aging raw materials. Nitrogen is used to cool materials, mix raw materials, to inject electrolytes, and for the pressing of materials by creating an inert environment. Atlas Copco's smart air solutions meet the needs of the battery manufacturing process. Our complete air or gas solutions are designed to provide the lowest lifecycle costs. By combining the most energy efficient air and gas compressors with the right dryers, filters, and gas generators, we can help optimize the manufacturing process. Our Class zero compressors, together with our desiccant and drum dryers combined with filters, supply a constant high quality of dry contamination-free air. Our onsite nitrogen and oxygen generators help lower operational costs by allowing production of the exact amount and purity of gas that is required for the application. This will lower energy costs and excludes the cost of gas supply or distribution. To further reduce energy consumption and decrease the carbon footprint of the production process, we can provide energy recovery units that allow reuse of the heat of compression elsewhere in the process. Yes, the EV transformation, the car industry transformation, may also offer opportunities, as we have seen for Compressor Technique. The most important message for me is not about the EV, it's about an industry transformation. If we look to the right in the vehicle assembly, normally we only look to the vehicle assembly. For us, the opportunities are there as well in the vehicle assembly, but not only. You have the pack assembly, you have the module assembly, and then you go to the battery cycle. You have the cell going further into the battery cycle. You have the cell production, and even in the raw materials during the lithium extraction and processing, there are also opportunities for us. I think the most important, as we are diverse and present in several market segments during this transformation, we are able to capitalize in all steps of that transformation. It is not only about compressed air, also industrial gases here, like nitrogen, we see quite a lot of opportunities. On top of that, if those machines are running at full capacity, a lot of heat is generated, and we can recuperate this heat in another process in our customers. Very interesting industry, but very nice to see the opportunities in the whole supply chain. We need to continue to grow as well, and we need to continue to find opportunities. What is our focus to continue to grow? Well, our strategy for profitable growth, starting with the growth, with organic growth first, we keep our focus on innovation. I think innovation is very important, and for us, it's very important that the innovation will reduce the total cost of ownership of our customers. We have said before, 75% of the operational cost of a compressor is energy. Therefore, it's of the utmost importance to reduce the total energy consumption of our compressors. We are also expanding the applications where compressed air can be used, and of course, this will also improve our customer profitability as well. Increasing presence is another focus area, not only on the physical presence, with the direct salespeople or indirect salespeople. It's also important to increase the digital presence, and we have several activities in that area. We continue to invest further to increase our digital presence. Our service offering is also extremely important to improve our resilience. Not only that, we also see several business opportunities on the use of our products. Digitalization offers also opportunities. We have to do in an efficient way as well. We have to grow, but we have to grow in an efficient way. For that, we believe in a modular design, and we are further strengthening our organization to be able to further work with modular design. We keep the focus also to have a lean management team. Also, we have our global presence. We have today factories in Asia, in Europe, and North America, plus South America, that can support our customers according to the needs or according to changes in regulation as well. I think we are very well positioned. To keep our operations very efficient, we are investing a lot in digitalization. Later on in the presentation, I will show what we are doing in our factories as well to digitalize or to improve the efficiency through the latest technologies available. That innovation comes in different types of technologies. We have the core technologies of the compressors and that we believe in a portfolio of technologies. I think that is very important for us. We don't only look into a single technology. We want to continue to invest in different technologies because according to the customer application a different technology can reach the highest efficiency for our customers, therefore the lowest total cost of ownership. That varies customer by customer, application by application. That's why we have a strong focus on a portfolio of technologies. That technology could be oil lubricated, could be oil free. We have also introduced in our portfolio of technology, industrial cooling, that is also part now of our portfolio. We also can deliver these technologies in different sizes, different flows or power, and different pressures as well that can go up to 400 bar, that is mostly used. Nowadays, there are new applications coming that will go even beyond that, up to 1,000 bar. It's not only about the compressor core technology. After we produce compressed air, we also need to treat this compressed air because the emission of the compressed air into the compressor comes from the atmosphere. You have humidity sometimes, you have dust that goes through the process, then you need to treat the air. It's also important, with more automatization, and also the electronic industry, the requirements to a higher standard of compressed air is really increasing. That means we are investing quite significantly in air quality products. We will show one example of a breakthrough that we have in one of our products for air treatment. Monitoring continues to increase. We continue to collect a lot of data through central controllers. Also, we are increasing the number of technologies that we have today to acquire data. Very interesting what is going on there. I will come with a bit more details during the presentation. Our service, also extremely important. We believe that our service portfolio we treat as well as a product. Every service that we have, every service type, has a product specification. With the same way we developed a new compressor, we developed service product. We have the same attention. We have a mastery spec that is clear requirements of how that product should look like, and we also treat in a very professional way. Going forward, I think it's also important because we can, with this product offer, we can keep on supporting society today with their challenges to increase productivity, to increase production. Also we can help society with the climate change targets. Let's see a bit more in details how. Innovation turns gray into green. We don't just manufacture air and gas compressors. We design our products to be the most reliable and energy efficient units available. We produce a wide range of technologies to ensure our customers have the most efficient solutions. Turn your compressor into an energy source. Heat recovery gets you on the road to having a carbon neutral compressed air supply. Take care of your air. You can reuse the heat of compression to dry the air, keeping your energy efficiency on track. Keeping pressure drop and energy consumption down, our filters are up to the task. The Optimizer reduces your carbon footprint by minimizing the energy consumption in multi compressor installations. Stay on the road to green with the AIRnet pipe system, minimizing pressure drops and leakage to the point of use. SMARTLINK monitoring of your equipment enables you to follow up on your progress towards a more sustainable future. Supported by our global service organization, our local experts maintain the energy efficiency you signed up for. A smart air solution is good for your business and the environment. Minimize your operational costs and contribute to a carbon neutral economy. This is already possible today utilizing the products that we have. Going forward, I have said before that the demand for compressed air will continue to increase because GDP per capita has the potential to grow. We also need to upgrade a lot of installed base with old technology because there will be more demand for compressors, more efficient. That demand will continue, and that is the blue line that you can see. Also, I also said, and Mats has also showed that we will continue to invest in R&D, and the R&D should further decrease the energy consumption of our products. That's why we believe that the way in terms of CO2, the increase is not going to be the same as the increase of compressed air requirements, because we will continue to invest in energy efficiency and we will bring better compressors to the market. It does not stop there. We also need to find ways to eliminate inefficiencies. Today, during the compression process, the compressor generates heat, and that heat can be recuperated. That recuperated heat can be utilized in different forms, in different ways. Going forward, we will further invest in that area, allowing our customers to have an even lower CO2 emission or go into the direction of a net zero compressor room. I also believe it does not stop there. There is also the demand for hydrogen and also the need to change the energy matrix, getting away from fossil fuels to another source of energy. Hydrogen has the potential to be that source. This has a landscape. It is not only about the hydrogen itself. We talk a lot about mobility, but there is actually a landscape that needs to be created, a new matrix. In that landscape, in that matrix, there will be a lot of opportunities, because if you produce electricity with solar or windmills, so you need to produce the solar panels. Again, a production process where we see opportunities as well when we are present in that market. In every single niche, there will be production like the shipping industry, shipyards. We also support shipyards with our products. Electrical vehicles, we have mentioned. The heavy industry, the heavy, dirty industry, the trucks, also a transformation there where we can support. There is also the need if you produce energy coming from solar, you need a type of battery. Could be a lithium-ion battery, where I have shown that we are also present. Also there are studies ongoing, different types of battery that you could use the electricity produced by solar and wind, and you could, for instance, run a compressor that will fill up a cave or another way where you restore that energy in form of compressed air or another gas, and later on, you can release that and you have a kind of expander running a generator to produce electricity. It seems like we have a slightly technical problem with the connection to Belgium, but stay connected. [Break] Welcome back, everyone. Apologize for the technical issue. Vagner, hello again, and please continue. Yes. Very good. We will adjust the slides here, we will continue. Just one second more, technology will help us again. Continue the presentation. We just talked about the hydrogen, wrapping up the hydrogen part. Today, it's still difficult to talk about what would be the market size in the hydrogen, but it's part of our portfolio already. Before this new trend, we were already selling hydrogen compressors for the industry. It's part of our oil-free product portfolio. There are even other applications ongoing that are under development. It's difficult to say what would be the market size, but I believe this will be part of our market segment. We will have a product portfolio for that, you come up as well with different technologies. I think the focus that we have to provide different technologies is also true here. You'll see how it's going to develop at which speed, and we will keep you informed. Changing the topic from hydrogen to low pressure. In the past Capital Markets Day, we have also informed that we were investing more in low pressure. There were several developments since some years. If you look the latest ones in 2018, 2019, 2020, and 2021. This year, we continue to release new products. Some products are replacement already to come with a more efficient versions. Like you see now, ZS 4 VSD+. It's a new product that is superior efficiency, best-in-class efficiency. It's also important to say here that we continue to grow organically, even in 2020. We also had a quite good organic growth. We are also working to expand the number of technologies I have mentioned before. We have done an acquisition of industrial cooling compressor, industrial cooling machines. We are now working to revamp the product portfolio and transforming into an Atlas Copco product portfolio as well. We have released the first portfolio under Atlas Copco brand. We are quite happy with the development. One of the benefits that we have now with this industrial cooling portfolio is the fact that we can now have those chillers connected to the internet using our SMARTLINK platform. We are already collecting data and looking to new opportunities how to improve the machines according to the application. Very interesting. It's still too early. It's early days. It's only one company we have acquired, but I believe that has the potential we can leverage from our global presence and also from our connectivity platform. If I look then to our innovation, what we have released, because we have increased the R&D effort. We are working, developing more products. Since 2016 here, we have increased the number of new products that we have released. If you see the last Capital Markets Day, we have released 40 products. I remember that we have presented that figure, and I'm quite happy to say that last year, even with the pandemic, we managed to release 55 new products. One of these products is a new type of dryer. I will not explain because after this slide, we have a video where you will be able to see in details what we have achieved with this new dryer. Do you think you know how a desiccant air dryer works? Think again, because Atlas Copco has introduced a true revolution in desiccant dryer technology. This is the desiccant you know and use in your traditional absorption dryer. This is Cerades, a new type of desiccant developed and patented by Atlas Copco. One consists of loose beads. Cerades is the first ever solid structured desiccant. Cerades will make all the difference for you in at least five ways. First, you enjoy much lower energy costs. The compressed air flows straight through the structured Cerades, reducing the pressure drop in the dryer. In loose desiccant, the air must overcome more resistance as it pushes and weaves through the beads. Second, desiccant beads get pushed around the drying tower during cycling. This friction causes them to decay over time, which can compromise your dew point. Cerades lasts much longer to protect your air quality and extend your service intervals. Third, as loose desiccant decays, it releases a fine dust into your air system, which requires extra filtration and maintenance, and additional service costs. This dust is also a health and environmental issue as it circulates in the ambient air during desiccant replacement. Cerades eliminates this dust problem to give you environmental and health protection, lower operational costs, and less downtime. Fourth, Cerades is vibration resistant and can be mounted horizontally. This is very important for a number of applications, especially in the transportation industry, which can now enjoy trouble-free installation and continuous operation. Finally, dryers with ceramic desiccant can handle a higher airflow. That means we can make them more compact. Just take a look at the first dryer with Cerades, the new Atlas Copco CD+ 20-335, which is much smaller than its previous version. Aside from the Cerades benefits, the CD+ gives you a low-pressure drop thanks to its large two-inch distribution valve system. The silencing system is extremely effective in reducing noise levels. In addition, it increases purge efficiency, allowing for a purge air consumption of just 16% and a lower energy use. Whereas most dryers are only built to work at 70%-80%, the CD+ is designed to operate continuously with 100% airflow without compromising on performance. In addition, optional dew point-dependent switching ensures the dryer only switches towers when the desiccant is saturated. This means cycle times are longer, and your energy use is reduced even more. Finally, the CD+ offers you advanced Elektronikon Touch control and monitoring to maximize your dryer performance. The controller tracks all parameters and alerts you when needed, and it can sync with your compressor. With the Elektronikon Touch, you can even get SMARTLINK remote monitoring to optimize your air system performance and maintenance intervals. The new Atlas Copco desiccant dryers with Cerades can make all the difference for you, too. Your Atlas Copco representative will be happy to show you how, or visit atlascopco.com for more information. Well, as you can see, we are quite happy with this development. This new product is indeed a very nice introduction, and it's going to be part of our air treatment product portfolio. Going forward, I will now talk about our service business and how is it developing and how we want to drive it further. If you take our Compressor Technique over the years, we continue to grow. We have been growing service 7% on average per year. Quite good development. A small hiccup last year in our growth, but we have difficulties, especially in Q2 last year. Since Q3, we have more access to the sites, and we are back into organic growth again. It's very good development. How we will continue to drive further our service business in Compressor Technique? First of all, for us, it's important. Service has a dual function. We need to support our customers, and we need also to develop the service business. To develop the service business, we want to do it in a way that really creates value to our customers. That's why we need to develop service products that also increase our customer productivity. How do we do that? We maximize the performance, we maximize the uptime, and also the performance of the compressor. We can also eliminate risks. The quality of the air produced is becoming more and more important. It's important to guarantee that quality will stay over time, not only at the beginning when you install the compressors. We also look to reduce the operational cost of our customers, also offering energy savings bundled with our contract. Also, if we do the maintenance in a timely manner at the right time, we can keep the performance of our compressors like it was when the compressors were new. With our connectivity solutions, we can also make it transparent that we not only do the service, but in a transparent way, we can show the customer savings, we can give recommendations, and the customer can also monitor the uptime using our connectivity solution via SMARTLINK. What is the strategy going forward as well? We have showed that before, our service ladder, where we want to climb the service ladder, selling contracts, selling monitoring and control optimization products. We have our vision as well that we want to service every machine that we sell. We want to have all those machines connected, including quality air, as you could see in the video about Cerades. Also, another point that is very important, we want to optimize the installations we have. That is also possible because if you have the most efficient compressor, but you have several compressors working in a discoordinated way, it's also not the most efficient way to optimize your compressor room. You need a central controller. If you produce and you have your compressor room fully optimized, in the distribution network, you have inefficiencies, that is also not good. We want to support customers on that. We have our optimization products, as you can see. We have a product called AIRScan that we will verify how the compressors are running, if there are leakages in the entire installation, if there are inefficiencies. We produce a very professional report with recommendations that the customer can do, or sometimes we support the customers on realizing those recommendations. Everything is based on savings. Also we can use our SMARTLINK solutions to monitor if what we have said in the report was correct or not. I think with SMARTLINK, everything is transparent now. If you say that there will be savings, the customer can monitor on a daily basis if the savings are there or not. Also talking about connectivity, we said before we want to have all our assets connected whenever we see it makes sense. Now to allow that we connect as well smaller ticket items or smaller compressors, we also created what we call SMARTCLAMP, which is a way to have smaller machines connected. You get limited data, not as much as you have with the SMARTBOX, but you get data from an asset that in the past we didn't know how this asset was running. I think it's a very important step to have SMARTCLAMP. Because now we have the traditional solution, the SMARTBOX sending data to the SMARTLINK platform. Now we have SMARTCLAMP, and we have other solutions as well through the compressor controllers that we also bring data to the SMARTLINK platform. I think that ecosystem is growing and getting better and better. Another point, and we do that because that transparency is becoming more and more important. We use the data to do recommendations for our customers, and those recommendations are getting better and better, and our algorithms are getting better and better to predict. It's good for our customers. Also during the pandemic, it was very evident with the SMARTLINK, because in some occasions we could not access the site. There was a lot of uncertainty at the beginning of the pandemic. With the SMARTLINK, we could contact the customer and say, "Mr. Customer, we cannot access, but we will keep on monitoring your machine. We will keep on producing report. If there are something that could cause a breakdown and an interruption in your production process, we will alert you." I think that was very important during the pandemic. Our sales effort continued, and even due to SMARTLINK, we managed as well to sell some contracts because of that, because the fact that we could monitor the equipment. We could not access, but we could monitor, and we could produce recommendation report with predictions. I think that was really a nice way to show to the customer how we could support them even during tough times. We also know, we communicated that in the past, that SMARTLINK also improves our operational efficiency, also allow us to generate sales leads, and is helping us as well to increase the number of service contracts. Quite promising. We are happy with the development as well. Our diagnostic centers are also getting more experienced and stronger. Our data team are getting as well bigger and more capable to do more advanced things using the data. Exciting from all angles. To wrap up the service business, we also have an interesting video. Information flows are everywhere. They transform your business, enabling you to keep track of anything that might impact your operations so you can stay on top of the game. For your compressed air equipment, data processing is key to ensure top performance, energy efficiency, and a continuous airflow. Atlas Copco SMARTLINK provides useful insights on machine performance, future service needs, and corrective actions, insights that are now taken to the next level. With SMARTLINK remote diagnostics, your data are analyzed by our diagnostic experts, supported by artificial intelligence and smart algorithms based on decades of compressed air technology know-how, powered by analyses from compressor rooms all over the globe. This massive knowledge enables Atlas Copco to trace even the smallest anomalies and inform our local service engineers directly on preventive or corrective actions to be taken. If needed, they will contact you proactively to schedule a visit and fix the problem, probably before you even knew it was there. SMARTLINK remote diagnostics keeps an eye on your compressed air equipment to ensure maximum uptime, enabling you to focus on your core business. SMARTLINK, connecting you to an easier life Indeed, very interesting what we can do with our service organization, with our service solutions today. Going now to operational efficiency. Of course, I would like to have you in our factories. There are a lot of changes ongoing. We are investing to transform our factories in smart factories. A lot of automation, like I mentioned before. We will share a video that's the best way for us to show what we are doing in our factories. We are collecting data for a while from the machines in our shop floor. Now there will be new ways to connect it. You will see a video on that, but also you'll see some of that automations that we have realized in the last two years. This is a very important site in Antwerp. This is actually the headquarters of Compressor Technique business area. Here we design, develop, produce actually most of the compressors that we sell through the world. We like to call this place the University of Compressed Air. We as Atlas Copco, we are, and we want to stay, of course, a market leader. Atlas Copco is known for its premium products. That's why we have the obligation to always make our products and production processes better. We have to make our factories more productive, and we believe we can do that by making them smarter. To make them smarter, we have to use key technologies, and 5G is certainly one of those technologies. That's why we sat together with our partners, Ericsson and Orange. Ericsson has been in the communication business for 140 years. It took us 100 years to connect all the buildings on Earth, and the last 40 years has been about mobile communication. 1G was voice, 2G was SMS, 3G was data, and 4G was all the billions of apps that you have on your phone. Now, 5G is about industries, and that's why we're here and deploying Industry Connect as a dedicated network on site. Together with the partners, we rolled out a private mobile network. We brought our mobile connectivity, which means the spectrum and our expertise in devices. We have deployed a 5G-ready network with the smallest indoor antennas from Ericsson, connecting the shop floor, enabling wireless communication in a very easy way to deploy and configure devices. This technology gives us the possibility to connect our machines wirelessly instead of the traditional way with cables. We can also connect now moving machines like AGVs. The real exciting use cases will come when we can make use of the low latency, when we will try to push our production machines to the extreme limits. Of course, localization, being able to see where things are is a fantastic, valuable thing. The case that wraps it all together for us also is the security. We can all do this in a secure environment. Orange Belgium guarantees a secure mobile connectivity for the industry. Manufacturers are requiring this kind of setup. They need full availability of the system 24/seven. In addition, they also want to have a protection of their data. Our network enables this. I'm very pleased with the collaboration between Atlas Copco, Ericsson, and Orange. When you push technology, it's quite challenging, but we all learned a lot. Co-i nnovation is in our DNA. We have more than 20 years of experience in the machine-to-machine business, with this project, we continue on our expertise in this domain. We believe that this is just the first step. Imagine when everything is connected, wireless, mobile, and fully flexible. The potential is enormous. I think the factory of the future will be a lot more autonomous, have a lot more automation, and a lot more intelligence. We will always need skilled people. As you can see, a lot of changes in the production, and also you were able to see what else we are going to do in that factory, but also in other factories that we have. With a lot of technologies required, that comes to the next point of the last point of my presentation, and perhaps the most important, our people. With all these new technologies that we need to add, as well as in terms of products to be released, and also in our manufacturing process, we need to acquire a lot of knowledge, a lot of skills, and that will come from talent acquisition. We also want to include in that talent acquisition, diversity. We have a clear target to increase the diversity in our companies. In a lot of activities, even for service technicians now or field service engineers, we start to recruit some females, and we are quite happy with the development in that area. We are acquiring the right skill and also with the diversity that we want to have in our company. It does not stop there. We also need to learn about these new technologies, even about those new products that we are adding and then these new technologies in the manufacturing process. We need to reskill some of our employees, and we have a lot of effort ongoing in that area. Also, we need to prepare our leadership to lead younger generation or to lead people in a different way as well. We have now at this point, at this right moment, a lot of people still working from home. We had to develop a lot of skills on that, and we managed to do it quite well with a very good training program. We have to keep our employees engaged. For that, we also have a series of very good activity to make sure that the people are engaged and together with the leadership to make this transformation as well and to support us to further growth our company. Without the engagement of our employees, we cannot reach what we have achieved so far. Going to the summary of my presentation regarding Compressor Technique, we are in a very diversified marketplace, present in several market segment that brings resilience and also opportunities. We have a growing number of applications. I have shown some examples of those applications, but that is growing constantly. We have a broad product portfolio with several technologies that we continue to invest. We are increasing as well the number of technologies where we are present, and therefore increasing our addressable market as well. The focus in our innovation process will continue. We will continue investing in engineers, in new technologies, and make sure that we have the most efficient compressor for each application of our customer or each type of utilization as well. We will continue the focus to sell solution, and also to have the whole product portfolio to produce compressed air, to treat compressed air, and to distribute compressed air in the most efficient way. We also need to have our people prepared, not only our own employees, but also of our distribution network. We can only make it happen if we have our people with us, and we are quite happy with the development. We managed to go through this crisis in a quite good way with a lot of engagement from our people, from our managers, from all our employees. It was a good period to learn new technologies, and that will lead us to continue to be a good company. Not only that, to be an even better company than what we are today. Thank you for your time. Thank you very much, Vagner, but please stay connected since we're now entering the Q&A session. Just a reminder, if you would like to ask a question to Mats, Hans Ola, or Vagner, please enter the phone number you see in the webcast player. While you're in the conference, you should dial press zero one if you would like to ask a question. Also, we kindly ask you to respect other participants' time and only ask one question at a time, and then back in line. With that, the first question is from Daniela Costa at Goldman Sachs. Hello, Daniela. Hi. Hello. Hope you can hear me well. Thanks for taking my question. I'll keep to one as you suggested. My question is actually regarding, I think Mats mentioned in the beginning, very strong market shares and leading positions that Atlas continue to have across all its segments. Machine vision has a more recent segment that you have entered, and you've talked about it as a platform for growth. Yes. Can you hear me? Yes. Yeah. Oh, sorry. Where do you see sort of the ideal market position for yourselves within machine vision? How representative within the group do you think that can be on your five-year vision? I guess at the moment you must have a relatively small market position, normally Atlas becomes dominant in the segments that it is in. Is there a different ambition here? Thank you. No, it's right if you define the market as sensors or optics, then you would say that we are a small player in that market. Intentionally, we've said that we don't want to go head to head with those type of manufacturers. The ISRA is actually one of the leading players when it comes to a solution in an industry or a surface vision application, for example. They provide the sensor optics, they present the light, and also the software that goes with that. They come on site, they install it, make sure that it's adjusted to the customer's expectation. That type of solution is probably where we see our position. This is one of the leading companies on surface vision, and 75% of their sales today is surface vision. Also with the access we have to auto industry and general industry, of course, we can make sure that we take advantage of these technologies now when we see the automation trend coming in manufacturing opportunities. I think you should separate between a sensor company and a solution-based company, and we intend to stay as a solution-based company. This is where we actually already today see that we have one very strong position. Okay. Next question is from James Moore at Redburn. Hello, everyone. Mats, Hans Ola, Daniel, can you hear me? Yeah. Yeah. We can hear you loud and clear. Great. My question is actually, though, for Vagner on Compressor Technique. I wondered if I could ask about the oil-free division and whether you're seeing any market acceptance of high-speed centrifugal turbo technology as an alternative to dry screw, and what the size is of your own business and whether that's growing faster than average? Yeah. In terms of technology, I would like to repeat what I said during the presentation. We believe that we need to have a portfolio of technology because customers with different applications will require different technology, different types of compressors, because that will maximize the efficiency. Before we try to sell a compressor, we always make a full measurement, especially in this type of oil-free installation. Based on that, we make our recommendation. I think our oil-free product range is doing quite well. We are quite happy with that development. You have seen that the low pressure keeps on growing organically. The oil-free screws keeps on growing. Our turbo compressors as well are developing very well, and I am quite happy to say in the markets that we decided to play with turbo compressors, we are market leader today. Including in the most competitive markets, we have a leadership position. Thank you, Vagner. I think that answered the question. We have Lars Brorson from Barclays on the line. Please go ahead, Lars. Thank you, Daniel. Good afternoon, all. Hi, Mats. I think I'll restrict my question to maybe Power Technique, Mats. You've got 22 divisions that are performing well, so maybe it's a bit unfair to ask for the 23rd division, but I wonder whether you could elaborate a little bit on the underperforming operations in PT and the plan to get them back in growth mode. Maybe just more generally, what does satisfactory performance in PT look like for you in terms of the KPIs that we can track from the outside, i.e. growth, margins, returns? Is it realistic to expect PT to get anywhere near sort of the low 20s margin that the other three BAs are operating in? If it isn't, as I said, what is that satisfactory performance that you're looking for in PT? Well, that's a very insightful question, Lars. From a PT perspective, when I look at that, and with the exposure we have to the construction market and not such a strong service opportunity as we have in the other operations, also the customers are not as dependent on the products. If you have a portable compressor, if it doesn't work, you can bring in another one. You don't stop the line. I don't expect that service. I think we are a master of spare parts and logistics there to make sure that we service our customers in the best possible way. I don't have that high expectation as I do in Industrial. Also in general, I think that that segment of the market is not as profitable, not only for us, but for many other companies. That's why I talk about tuning it more into industrial applications as well there. It's no big secret. Generators is the area where we are not a market leader, and we need to find our niches with the rental companies where we can say that we have more accessibility of the products, it's more connected. It's still never going to be the high-margin product, but if I can get that up to a decent level, I'm absolutely okay with that. I think they are touching at 15%, 16% operating margin in a decent quarter. I think with the return on capital around between 20% and 30%, and I think that's a go for growth for them as well. Specialty rental, okay. Service, okay. We can do even better there. Portables, absolutely okay. We have the challenge division there. It's more the strategy around that. 15, 16, I'm happy to turn on growth for them as well. Okay. Thank you, Mats. Thank you. Next question goes to Klas Bergelind from Citi. Thank you, Daniel. Hi, Mats. Hello, Klas at Citi. My question is on the capital intensity or the compressor content per unit of energy produced as we're shifting more to green technologies. In hydrogen, for example, your compressors will be used across solar in production of green hydrogen, looking at electrolyzers through to shipping and so forth. It seems like the compressor content as we're shifting can go up. Have you done any calculations of this? I'm just going to give you an example. Another industrial, Alfa Laval, they're saying that you need three heat exchangers per every megawatt of hydrogen produced, for example. Any similar sort of reference that we can use for Citi? Thank you. Sounds like a Vagner question. Thank you, Mats. We see the compressor, it's going to depend a lot on applications. It's difficult to draw a number. We believe that we, like I explained, there are quite a lot of potential to grow Compressor Technique because in some countries, it's still a lot to come in terms of GDP per capita growth. When that comes as well, there is consumption, there is the need to produce additional products, and that will drive our demand. Also for green products, when I say green products, it's efficient products. We see that customers are becoming more aware about CO2 emissions, the same way that Mats has shared today that we are working on our CO2 emissions from our operations. What is today Scope three for us is Scope two to our customers, and they also need to work. We can support, and we are doing as well in a proactive way. That can create further potential, definitely, in terms of replacement market because we have the potential that comes from our install base, but also the entire compressor market install base might need to be upgraded as well. There will be new addressable markets like we said before about hydrogen. It will generate new opportunities, but there will be some headwinds in other markets. We also have to say that when we will balance again the order how much growth we will have in terms of market size, it's difficult to establish exactly the figure, but I foresee that the market size will continue to grow going forward. Thank you. The next question goes to Paramveer Singh at Bank of America. Yes. Hi, thanks very much for taking my question. Hopefully a short question. If you could give some idea about the market opportunity in terms of how big is the market overall in the three major areas you talked about for growth, low pressure compressors, hydrogen, and industrial cooling side. How big do you think these markets can be? What could be your own opportunity in each segment in the next five years, let's say? I think that was a question for you, Vagner, right? Yes, indeed. If I look to the starting low pressure market, we see that there's a market around $2 billion. That includes as well the aftermarket. We are working, and all this R&D development that we are doing now is to be able to address this $2 billion markets that we don't have the full portfolio today, but every year we come with new products, and we get part of that market. When it comes to industrial cooling, it's important to highlight, I think, that the cooling market sometimes also to include climate control is huge. We don't focus on climate control. We focus on industrial application, and the industrial application could be a market around $8 billion. Today, are we equipped product-wise to address that market? No. It's a huge market. It's quite a sizable market. The next question is from Max Yates at Credit Suisse. Max? Still with us, Max? Do you hear us? Okay, it seems like he left. We have Andrew Wilson from JPMorgan. Please go ahead, Andrew. Hi, good afternoon, everyone. Thanks for taking my question. I want to talk around the digital and connected side of compressors. It sounds like you've made quite a lot of progress again in terms of- in terms of that offering. I am just interested in terms of how much of that knowledge and setup that you now have in compressor that you can apply to the other businesses. I get the impression that compressor is very much leading the way with regards to this offering as it generally has been serviced, but interested how much of that will be applicable in time to the service operations across the other business areas. Maybe I can start and then hand over to Vagner. The SMARTLINK concept that has developed over a number of generations is also applied within Power Technique, so they take advantage of that both from a supplier base and a knowledge base. We are also looking at, of course, especially the semi part of the industry to make sure that we are connected there as well, and I think they had started their own journey already. That is forum where we share experience in between, and it's the data. To get the data out of silos is important, and then to read the data and read the right data so we have it at the edge or in the cloud to make sure then that you actually get the data that you can act upon. In terms of Industrial Technique, tools in the auto industry has been connected for 15 years, this is not new to them. They have mainly used it to save the data to secure the tightening, now they also start to use it for process control, they are on their own journey, which is slightly different from what we have seen in Compressor Technique. Maybe you would like to add something, Vagner? No, I think you are right. We are sharing quite a lot among the divisions. Of course, we have different projects because our people, they have deep knowledge on how to use the data from compressors, and that's how we, as an OEM, can make the difference because we understand the technology, and then we are adding now people that understand how to deal with data. I think that makes us quite strong to improve efficiency of our customers because we really use the knowledge we have with our compressors. I also say that we started as well. Some people are changing. For instance, the person now that is leading this part in Power Technique was the program manager of Compressor Technique in the past, nine years ago, was the person supporting us to do the project of connectivity. Now she's in Power Technique as VP marketing, one of the division, and is leading the way now in Power Technique. I think there are cross-sharing. I think we are happy, and we do that as well in Compressor Technique in a transparent way that things can be shared. Also, the platform, although it's the same platform, but we have a supplier, and we all can share the same negotiation and the same strategy on how to use the data. I think a lot is happening there. I think we can add to that as well that we have put down our foot a number of years ago to say that no one should be able to read our data better than ourselves. We have hired people in this field. We have said that this is a core competence going forward. I know that other companies have taken a more outsourced strategy around this. We have not. We think it's extremely important that we understand the data, and it's so much easier to understand and read the data if you have designed the asset itself. We think we right now are ahead of competition and other third party that would like to do this, but for us, it's a core competence going forward. This was really proven important during 2020 when we did not have access to customers. Thank you. Before we take the next question, I just want to remind you once again that if you would like to ask a question in the conference, please press zero one on your telephone keypad to ask a question. With that said, next question goes to Ben Uglow from Morgan Stanley. Please go ahead, Ben. Thank you, Daniel. Good afternoon, Mats, Hans Ola, and everyone. It was a question for Mats, really, from the opening remarks. Can you just elaborate a bit around the EV opportunity for Atlas? I don't know if I heard correctly, but my impression was that you said that there were three business areas that specifically played into the battery pack. What I wanted to know was either which of the business areas or could you tell us exactly where your opportunity set lies? Of those three, which is the most interesting and why? No, you're right. A number of years ago, we said that we would start tracking battery manufacturers, and there are several hundreds of them, especially in Asia. Maybe a year ago, we said that, okay, we need to go across Business Areas here to share market intelligence and application knowledge. I cannot claim to be an expert on making batteries, there are parts in the early process where you make different things than under vacuum. That is an important part of that. When you build the factories, of course, Vagner presented, okay, the need for compressed air, which we can see quite obviously. Of course, on Industrial Technique, we can do. Both assembly. The assembly is extremely critical in batteries because you don't want to have an accident there. It's the most advanced equipment that we can offer, at least in terms of traceability and making sure that it's correct. You use the dispense technologies to lead. First, you actually measure with laser to make sure how much of this fluid you should put out, and that you use the dispense to lead away energy to make the capacity of the battery. That's why I said then that I could not find a way for Power Technique, but maybe there is one there as well. Other three business areas that find this battery development to be extremely interesting, and we are sharing competence in between BAs that meet on a regular basis to share market intelligence and application knowledge. That's great. Thank you very much. Okay, and the next question goes to Gael De Bray from Deutsche Bank. Please go ahead. Yes, good afternoon, everybody. Thank you for sharing the chart showing the solid growth development for the low compressor business over the past few years. Could you now elaborate on how margins have trended over the same period of time, and how the low pressure machine margins compare to the CT average profitability today? Yeah, if I can comment on that, I think you have seen that we are doing quite a lot of designs, and there are some that are redesigned versions from five to seven years ago that we have released. Every time we do a redesign like that, there is an increase in features and decrease in cost. In the low pressure area, we are trying to improve the margins. I think there is still room for improvement in that area, and that is coming step by step. I believe that as well that we still have a young, let's say, population there, meaning the aftermarket is not really harvesting on the full potential. Once those installed base that is ramping up started to really get a bit more mature, the aftermarket in that area will become stronger than what it is today, and that will bring margins up as well. Sorry to push you a bit on this, but what kind of margin gap do you see at the moment? Maybe on the new equipment side, if we exclude aftermarket? We don't explore the divisional margins in that sense. I think Vagner was clear enough, of course, to say that it's below on equipment today. You can expect to increase those margins step by step and accelerate into service. I'm extremely happy about the initiatives on R&D and the growth rate that we have seen right now. Okay. Thanks very much. Thank you. I repeat again, if you would like to ask a question in the phone conference, you press zero one on your phone keypad. Next question goes to William Mackie from Kepler Cheuvreux. Please go ahead. Good afternoon, gentlemen. Thank you for taking the question. My question is related to industrial cooling. Thank you for describing the size of the market. I noticed that you made the acquisition of Eurochiller, then you've launched a new range of products into that segment. Can you just throw a little more color on where you see the fragmentation of the marketplace, where the opportunity is to grow, what type of available returns are in that segment, and where you see your market share relative to your future ambitions? Thank you. That question goes to Vagner. I think we have Vagner now on the phone. Vagner, are you with us? Yes, Vagner, you're on the line. Did you hear the question? No. Please, William, can you repeat the question once again? Sorry for that. Yeah. Good afternoon, Vagner. The question is related to industrial cooling. You've told us you see a market size of around SEK 8 billion. You made an initial acquisition of Eurochiller in Italy, and you launched a new range of products. Can you provide more color on where you see your market share or position in the marketplace, and how you see the opportunities in the marketplace? Is it very fragmented? Is there scope for a roll-up strategy, or is it the case that it has to be largely organic? Where are your longer-term ambitions in that space? I think we have a very small position today, I must say. There is still a lot of room for growth. It is quite fragmented, and we will come from a roll-up and also from organic. We are ramping up R&D. We are developing the new products. Recording in progress we are looking into new acquisitions as well. Recording stopped. We're obviously recorded here. Thank you, Vagner. We have another one on the line, question from Max Yates at Credit Suisse. Please, Max, go ahead. Agreements. You've talked about the different styles of servicing that you have in Compressor Technique. I was just wondering if you could give us a feel for how many of your new compressor sales to date come with service agreements, and maybe how that compares to the percentage of the installed base that have service agreements attached? Just trying to understand how quickly that business might develop as you continue to sell compressors and service agreements over the next five-10 years? Thank you. I would say it's still not a huge part of our new machines coming already with the service. I say that from a global perspective. It's a bit different. If you take Europe, a lot of compressors that we sell, it's already coming with a service, and you cannot sell without the service combined. In other markets, we are still not there. If you go to Asia, for instance, it's a completely different market. It's a completely different approach. We don't see that today. That's why in the mix, I say that it's still low. I do believe now with connectivity getting more and more mature, that is also supporting us because the connectivity projects, we show since the beginning now to the customer the value of connectivity and the value of service. It seems like we again have a technical problem, and obviously the importance of vacuum pumps to produce good microchips is there. I think Vagner will just come back in a minute through the phone conference. I understand the question, and we do get the question quite frequently, how many we have contracts? I understand. We have not shared that externally. As you understand from Vagner, every machine, oil-free or industrial, can be connected. Of course, that hopefully with the digitalization can also continue to drive uptime on the compressors. We would give us more service contracts, more OEM parts. Of course, that's part of what they're driving continuously to improve the analytics of the data as well. We don't share exactly the share of the compressors that we service with service contracts. From what Vagner already had the chance to say, the potential is still there to continue to grow handsomely on that part. Yeah. Maybe just while we wait for Vagner. Mats, could I ask you a question just on raw materials? It's something we get asked about a lot, and obviously the moves we've seen in raw materials are fairly exceptional so far this year. I just wanted to understand whether you see any issues passing this on to customers, whether you feel comfortable that this is easy to manage as you've managed to do in previous periods of raw materials inflation. I would absolutely not define it as easy. We have seen a number of suppliers, of course, with the shortages of material that would like to increase prices. If you say just the metal prices, the content on our machine is more the machining and how we do things, it will have an impact. We also have long-term contracts with many of our suppliers. I believe that we will handle it in quite a good way. I need a couple of more months to see how this impact all these 2023 divisions. We have been prepared before, and we have handled it before. I keep trusting my organization that they can handle in the best possible way. To say that it has no impact, that would be to go way too far at this point, because the situation we are going through right now with the capacity is a little bit unique, I must say. I don't know if you have a lambda. No, I think if you could put it on a scale, I think the physical challenges from suppliers, et cetera, that we face is probably more of a concern than how to compensate for the price increases. This does not take away the difficulty, as you say, the challenge of that as well. It's more the business model that we have, and the history shows that increasing raw material inflation hasn't before had any major impact on the profitability due to what Mats said on the long contracts, et cetera. You also say that our commitment is towards our customers. Absolutely. If we need to go and buy electronics on the spot market, then we will do that. Yeah. That will not be a kind of, okay, we are not going to supply. No. We are going to go after every opportunity to have happy customers. That challenge the profit. Yeah. Yes, absolutely. Again, you can hear me now? Yeah, we can hear you. Okay, good. Okay, we have a next question from Alasdair Leslie from Societe Generale. Please, Alasdair. Referring to your carbon savings examples you gave, we're seeing a number of capital goods companies now start to calculate and disclose what we probably call Scope four savings. For the entire portfolio, doing a kind of bottom-up analysis of product lines and scaling that up across the entire group. I'm just wondering, you've given some specific product examples, but do you now also plan to map all of your offerings so you can kind of showcase the savings for the whole of your portfolio? I was wondering if I could squeeze in a second part to that question as well. You talked earlier about high demand and interest in upgrading to more efficient compressors, specifically to lower carbon emissions, I think. Are customers still at the sort of discussion and discovery stage here, or how close are we to seeing this translate into meaningful growth? Thank you. [But] if you look at our targets, we believe that they are quite ambitious. In Atlas Copco, I think when we commit to something, we really would like to deliver it, so we have put 2030 to start with. Of course, 2050 then to be some sort of commitment to the Paris Agreement in line with the scientific targets. This is the process we are going through this year when we do the CO2, and we measure, in principle, every business to see how this footprint look like. I have not seen what you describe, but maybe we can learn from that as well. This has been our journey at this point, and I think we can challenge ourselves at the end of the year when we have the full picture. As you can see, it's mainly in the user phase of our products where we need to find ways to come up with even more energy-efficient product to be able to commit to scientific targets. In terms of customers, I think it has accelerated the interest and the discussions. In the compressor side, we have always sold on the energy efficiency. I believe Vagner said it's around 75%, 80% of the cost of running it throughout its life. This is just an added bonus that if you have the best machine, you can also help the customer with their CO2 footprint. I still believe that most customers are still paying for good investment, but this is stepping up day by day. I don't know if you want to add on this, your sales strategies around sustainability. No. We clearly see a little more interest. There are some customers in the dedicated market segment that are even inviting us on how can we help them on this transition. I think there is an increase in demand coming from that area as well. Because you have the compressors that are utilized in general for several things in the production process, but also compressed air can support as well, not only compressed air, but compressors in general can support in those new energy sources as well. We have applications in hydrogen for high demand in hydrogen, where we are directly involved in the change of the energy matrix. That it's not really to do with the general air compressors, but moving those new energy sources in a form of a gas. Of course, if you need to move this energy around, you need to increase density. To increase density, you need to liquefy or you need to compress if it's a gas. There we have opportunities and applications where we are also present. Very good. Mm-hmm. It seems like we have some more questions, but before that, again, I remind you, press zero one if you would like to ask a question to Vagner, Mats, or Hans Ola. Next in line is Ben Uglow from Morgan Stanley. Please go ahead, Ben. Great. Thanks for taking another question. Really a sort of broader picture question for Mats. In the sort of the opening slides, you showed one of your growth objectives or pillars as ASEANization, you talked a little bit about the changes that were ongoing to supply chains and so-called protectionism. Can you just talk generally about that? Is that something that you see in your customer base? When we're talking about ASEANization, is that sort of in Asia for Asia, i.e., moving to Vietnam or the Philippines or whatever, or is it something different? Is Atlas itself changing its footprint at the moment in China? Yeah. Very good question. I'll try to answer it in a broad way as well. We see in our operations today that we do two things, due to protectionism, due to corona, and other interruptions that we can see, that we are trying to shorter the supply chains. We are trying to make sure that we have two suppliers for all critical components, which has been the strategy for a number of years, but it's continuously to do so. What we have seen with the protection between U.S. and China, tech maybe, and of course then China, for example, accelerate their semi demand. They've done the same with the auto industry, and I think they are quite independent now. We can also see that China start exporting in I had numbers in my head before, but I don't want to commit. We can see that the export from this country into other Asian countries is just increasing rapidly right now. What we are doing then is that we have Compressor Technique in Wuxi. We can design, we can supply, we can manufacture in the country. On semi, we can do the same thing. In Industrial, we can design, we can manufacture, and we can sell products. This is part of the success that we have had, that we can take these orders and there are demands from customers, not only in China. There are many that says, "Well, we prefer a local supplier," and then we are perceived as more of a local player. I think the protectionist has accelerated this type of behavior, and it's not only U.S., China. We can see it in India, we can see it in many places. As I tried, we'll accelerate the local community. I think you need to be in the powers of the world, Europe, America, and Asia, with the focus on China, to make sure if you want to be number one in the world, and we are. When we say we do local for local, it comes everything from talent management in the region to R&D to sales and the value chain. We are looking at that, and I think the Industrial Technique had their main hub here, and that's mainly because the tools are rather small, and they can easily be shipped. Otherwise, we are local, and I think this is a trend that will continue in many years to come. We don't see a change of governance. We have not seen any change in this. I think that will stay as we see it. We do certain things. Yes, we do see customer expect us to be more local. Also these tech centers I talked about in Vacuum Technique, if I said service maintenance, they can also do assemblies. We can actually do pumps for them on the local premises very close to where they will be used. That's also a huge upside for our team there. That's super interesting. I am correct to think that you do see some change amongst the customer base outside of semis, but at this point, Atlas Copco is not adjusting its footprint in China. Is that fair? Well, we are adjusting our footprint to increase our investment and build a broader base. Yeah in China, yes. Thank you very much. I appreciate that. Thank you. Thank you, Ben. Now we have actually the last question in the queue, and that is from Fredrik Agardh from SEB. Yeah, hi. Thank you very much. Thanks. Yeah, I have a question on, you made a comment initially on the Vacuum Technique division saying that vacuum intensity increases with miniaturization. I guess this refers to semiconductor manufacturers moving down the nodes and more complex manufacturing. Is there any way of quantifying this and the opportunity for you? Is there any way of getting a comment on what this does to your aftermarket operations? Thanks. I wish I was that expert. I had the question before, to go from seven- 5 nm and see how much intensity it improves. I don't have that measure. What I have learned at least is that the more complex, the more processes, not so much dependent on the product itself, but the more processes, the smaller it is, the more vacuum intensity. I wish I could quantify it for it, and maybe we can help you with that later on, but I don't have that measurement. I don't know if you do. No, I'm not able to quantify it either. I think it's rather complicated. Only convinced that the correlation exists. Yes. Sorry, Fredrik, you had a follow-up. Fredrik, yeah. No, is it meaningful or is it something insignificant? I mean, in terms of increasing the vacuum content as a share of total CapEx for a semiconductor. Yeah. I think we have to learn and get back to you. I don't have a measure for you there. Okay. That's fine. Thank you very much. Thank you. I see now that we have more questions coming in, and this one goes to Lars Brorson at Barclays. Please go ahead, Lars. Thanks. A quick one. Thanks for taking my follow-up one. I was just wondering, Vagner Rego, whether you could reflect a little bit on the competitive environment over the past 12 months, specifically around three areas. One around digital. Has the pandemic been the sort of catalyst of a broader market share shift away from the smaller service operators? I think we talk about over the past year or so, they don't have quite the same digital capabilities as you do. Point one. Point two. The Gardner Denver and Atlas Copco Rental merger completed, I think, about a year ago or so. I think historically you've talked about seeing some, sort of say, short to medium term opportunities around the customer base there as they went through their integration. Has that sort of really come through over the past year or so more to go for? Maybe just finally, in terms of your own operations and in terms of how you collaborate with the industrial vacuum business in Vacuum Technique, has there been more progress around, should we say, more integrated solutions, particularly around the service business that would be of interest? Thank you. Well, if I started around the last one around the service business, we collaborate in some areas. Of course, we share all the knowledge that we have. We started before with the service business. We are a little bit more advanced in some areas, but I must say they are catching up fast as well. We are sharing a lot of the best practice that we have, and depending on the maturity level of the division, because it's not only in Vacuum Technique, for instance, these two divisions, they are utilizing that knowledge that we have around connectivity, around price management, around field service force. I think that is the areas that we share the most. When it comes to the merger you mentioned, we don't comment. It's difficult for us to comment about the competition. What I see, we will, as a company together, they will have to perform. Ourselves, we have our focus on R&D development, on people development, and on channels development. I think that combination will allow us to stay competitive, having best-in-class products. I think that will allow us to continue to be very competitive in the market. I would say that in the last years, I think we managed to continue to develop, to work on these three areas, because I think it's very important as well to work with our channels and also with our people. I think we will continue to develop our markets. When it comes to these smaller units, yes, we want to connect even the smaller units. I believe that will bring a lot of positive insights, will allow us as well to be able to see what are the operating conditions in the whole installed base that we have. When that comes, we learn as well how to design new products for that market that will further strengthen our position in the market. That's what I believe, and that's why we are also investing to connect the machines, even if the payback is not as clear as on the bigger machines, but I believe having the data is crucial for the future in all addressable markets that we want to be in. Could we say, because I ask you the same question as Lars did in terms of these joint ventures. What I read talking to our people is that the market dynamics hasn't really changed that much, at this point, at least. We know how to compete with the Western companies that we've been competing with for years, and doesn't change very much, not in our favor and not in their favor. What we keep our eyes out for more is more the challenger from the Asian regions. If they come, we need to stay ahead of them so that the lower price that we can show that really. We believe that the sustainability discussion, if that accelerate and regulation, that would be to our benefit versus people that copy technologies done. This I think where Vagner spends more of his time to figure out if there is someone that pops up with good technology from the Asian base. That's helpful, [Colm]. Thank you. I see we have one more question. It is William Mackie from Kepler Cheuvreux. William, please go ahead. Thank you for the follow-up. My question comes back to your innovation intensity as a critical driver for growth and profits. You put up that chart, Mats, at the beginning of your presentation showing the steady increase over the last decade in the research and development expenditure and the innovation rates rising. Where should we expect that to trend? Is the incorporation of increased digitization and the intensity of competitive pressures going to push that up to 5%, 6% as you enter new opportunities in renewable or batteries and others? Do you see it as about stable within your longer-term planning? Mack, when I started in 2017, one of the tasks was that we were lacking organic growth for a number of years in Compressor Technique. We had that discussion, Vagner was also new in his position. We said, 'We need to stay ahead,' and it represent almost 50% of the company. To really stay ahead of that, and this is one of the reasons why we invest more in this. If you look at the value creation for our shareholders, from a value perspective, of course, it's almost risk-free if we do it efficiently and we do the right things instead of acquiring a technology. We said, 'Okay, we increase the heads working acquisitions,' which over the last three years, we have done 44 of them. At the same time, we wanted to make sure that we could show organic growth in CT, and this was one of the reasons. Your other question is that the more software you get into a product range, like we see in Industrial Technique, for example, then you can see in relative terms that the spend will go up. That should meet, if we do it right, with increased gross margins as well. The sales cost or the equipment cost of the software should go down. It should meet each other, and that is not like we are just spending, but we thought that when I introduced this, that's like, "Should we spend a little bit more?" We thought it was a money problem in the beginning, but it has proven it's not at all a money problem. It's more of a resource and availability problem because normally the best resources we have are working on the most interesting projects already. To add something on top of that, you come back a little bit to talent management as well. Now we have run huge efforts on data analytics, which all the divisions now have, for example, and added those resources. I don't think there is a specific number, but more software content, normally higher, and then the gross margin should be higher than the traditional technologies. Thank you. Very insightful. I think that was the last question of today, and we are now entering the end of this Capital Markets Day. If you didn't have the opportunity to ask your questions, you're of course, welcome to contact IR after the event. With that, we just wanted to say thank you for participating and looking forward to meeting you, hopefully in person next time. Thank you. Thank you.