Welcome to the Atlas Copco Group Q3 2024 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing hash five on their telephone keypad. Now, I will hand the conference over to CFO Peter Kinnart. Please go ahead. Thank you, operator. First of all, a very warm welcome to all of you attending this, quarter three, earnings call for the Atlas Copco Group. Together with me is Vagner Rego, and I will, together with, Vagner, guide you through the presentation in the coming minutes. But before we start, I would first already now like to remind you, as usual, that, once we open up, I would like to ask you just to ask one question at a time in order to make sure that all of the participants have an opportunity to raise their most burning question. And if, of course, we have time left, then there's always the opportunity to come back with second, and follow-up questions. So thank you already for that, before we start. But with that, I would like to hand over now to Vagner Rego, our CEO, who will guide you through the presentation. Thank you, Peter, and welcome to this conference call. This time we have decided to start with the service picture. The service is an important part of our business, has performed quite well, and for sure, people is a very important part of that business. Going to page number two, Q3, overall stable orders received coming from mixed and market demand. If we look more in detail on our different market segments, industrial compressors, for instance, had flat orders received, and gas and process compressors had lower orders received than what we have had before. Good growth in vacuum coming from the semi market, Industrial Assembly and Vision Solutions were down, driven by the automotive industry. We also had weaker demand in Power and Flow equipment, compensated by acquisitions. And like I said at the beginning, the service business continued to perform very well, and we had growth in all service, in all business areas. So and we end up with a healthy operating profit, followed by solid operating cash flow. And it's also important to highlight, this quarter, we have completed 10 acquisitions. Then, if we go further into the information, we see that orders received were around SEK 42 billion. So with organic growth of 1%, while revenues were SEK 43.1 billion with organic decline of 1%. The operating margin... The operating profit was SEK 21.7 billion compared to SEK 22.7 billion last year. But we also had some items affecting comparability. This case, this quarter, we had some restructuring costs coming from VT and ITBA, and Peter will come with more details later on. The profit for the period was SEK 7.1 billion, and basic earnings per share were SEK 1.47. Like I mentioned, a solid operating cash flow at SEK 7.5 million, and good return on capital employed around 28%. If you look to the chart on your right, you see our profit level has been quite stable. And with the adjustment we have had, we were at 21.9%, which is a solid level. Then, if we look how we have performed over the regions, if I start with, not with China, but with Asia, we see stable orders in Compressor Technique. Vacuum Technique performed quite well in Asia, coming from the semiconductor market, and we had weaker IT, Industrial Technique and Power Technique in Asia. If I look then to Europe with -4%, here also positive vacuum development. We had very good orders received in for the semiconductor in Europe, but not only, also the Industrial Vacuum or general vacuum was quite positive. Compressor Technique was down, mainly due to gas and process compressors, while we see a flat development in industrial compressors in Europe. And Industrial Technique went down mainly driven by the automotive segment. When we look into Europe, we saw positive development in Power Technique, with a quite nice increase in orders received. But of course, with the low comparison base in Q3 last year, a flat Industrial Technique and opposite to Asia, Vacuum Technique had a negative month, negative development in orders received, followed also by a negative development in orders received by Compressor Technique, and then again, mainly driven by gas and process compressors. Solid Africa and Middle East, mainly due to the Middle East, and also solid South America, with the +10% development. If we then move to the organic order growth per quarter, we see a flat development in the last two quarters, but we stay in a good level. If we then move to slide number six, we can then see that the structural change had a 2% impact in our orders received in the quarter, mainly coming from acquisitions. Currency, we have suffered. We had quite a lot of headwind, with 4% negative impact, 1% positive impact in the organic, like I mentioned before. While in the revenues is the same trend, but with - 1% on the organic side when it comes to revenues, and we ended up at SEK 43.1 billion. If we look to the year-to-date development, we then have a positive organic development in the revenues, + 2%, and we are now on - 2% development for our orders received. Then, if we see the contribution from the different business area, Compressor Technique has a solid contribution for the overall group, with 47% of all the orders, with + 1% organic growth. Like I mentioned before, it was flat in Asia, a bit negative in Europe and North America, and quite positive in South America and Middle East, and Africa and Middle East. Vacuum Technique had a positive organic growth of 10%, coming mainly from a positive Asia and Europe, but a negative North America. Industrial Technique had a -7% development, mainly driven by automotive, and is now 16% of the Group orders received. And while Power Technique continues as well, 16% of the Group revenue and a flat development in terms of orders received. If we then go a little bit more in details, in Compressor Technique, which, like we said, 1% organic development. Industrial Compressors were flat, with gas and process compressors going down in orders received. Solid growth in service. We continue capitalized on the base that we have and the latest investments that we have done in equipment, that we continue to capitalize on that. I think it's very important. Revenues increased two percent organically, and a fairly quite solid operating margin of 26.1%, supported by currency and combined with volume, price, and mix effect. Return on capital employed went up to 85%, and in the quarter, we have released a new product range for compressing biogas, and also to allow upgrading into biomethane for natural gas refueling and gas grid application, when you need to do the grid injection after the upgrading of the gas. So continue good journey and profit went slightly up. If we then move to the next business area, Vacuum Technique had a solid organic growth of 10%, but here we had a lower comparison base. But still, we are quite happy to see a positive development coming mainly from the semiconductor market, and mainly coming from Asia, like I mentioned before. Industrial and Scientific Vacuum equipment is still in a negative trend, while the service business continues to develop quite well. Operating margin at 19%, and we did have some items affecting comparability. At this time, we had restructuring costs booked in the month. We saw that we still have a negative trend in the industrial and Scientific Vacuum, and we have decided to further adapt the organization to cope with that negative trends. So we also had a quite relatively big impact coming, negative impact coming from currency that brought the margin to 19.3%. But again, Peter will come back with more details. Return on capital employed around 20%. We also here released a new integrated vacuum and abatement system for the semiconductor market, specially designed for safe handling high-risk production processes. Then, if we move to the next page, number 10, we have Industrial Technique with the organic decline of 7%, mainly coming from the automotive industry. And it's quite visible. I think we are all quite aware about the negative trends in the automotive. They slow down in the EV adoption, so then we have seen less decisions being taken when it comes to new projects. So, and that had an impact in our orders received. Equipment orders for the general industry were basically flat and continued growth in the service business. Revenues were also down 3% organically, and our operating margin end up at 20%, and also here affected by restructuring costs, without restructuring costs at 20.6%. Margins were negatively affected by lower revenues, volumes, and currency as well. Return on capital employed is likely up. We also come up with a new range of robot-guided vision sensor for quality assurance, supporting improved inline inspections of painting surface for the automotive industry. It's a quite interesting product. We keep on extending our Vision Solutions as well to support automation. When we go to Power Technique, to the next slide, Power Technique had a flat organic development, weaker demand for equipment, and the order growth was basically driven by acquisitions, and also stable demand for Specialty Rental. Solid growth for service here as well. We capitalize on the installed base, and revenues were down by 5%. Operating margin at 18%, of course, with a very high comparison base, 20% of Q3 2023 was the best quarter when it comes to profit margin for Power Technique. And the margin was negatively affected by the lower revenue volumes. Also, investments that we have done in our fleet, that we will turn in revenue in the coming quarters as well, and negatively affected by the acquisitions. Return on capital employed at 18%. And we have released a new range of surface dewatering pumps, now with connectivity included, and those are the high head, what we call high head pumps, for high pressure and high flow to perform in very tough environments. If we go to the next slide, we can see that, then we had, you have seen already our orders received and revenues. And if I can comment then, if we exclude the amortization of intangibles related to acquisitions, our margins were at 23%. So, and of course, including it was and one-time items, was 21.7%. So we have some items affecting comparability. Perhaps it's now that you take over, Peter, to further explain our profitability. Yeah. Thank you, Vagner. If you look at the net financial items overall, not a major, as you can see, compared to last year. The biggest impact is, of course, the interest that we get from our cash position that is affecting the net financial items positively. The profit before tax then ends at SEK 9.2 billion, 21.3%, and we had an income tax expense of SEK 2 billion, exactly almost, which is 21.9% effective tax rate, which is low, as you can see. And that has partly to do with the fact that we have the impact of some provisions with regard to taxes that we have been releasing. As we also mentioned last quarter, the impact was even bigger, but then there was a big one-time effect. Now, this is a gradual effect that will continue in the coming quarters at a similar rate. If we think about Q4, what would the effective tax rate look like? Well, most likely somewhere in the mid-22% to 23%. So well, let's say 22.5%, roughly, probably is where we believe we will end up. The profit for the period after the taxes is then SEK 7.2 billion, and then basic earnings per share, SEK 1.47 per share, return on capital employed, 28%, and return on capital equity, 29%. With that, I will move to slide number 13, and I can elaborate a little bit more on the profit bridge. Because what does this current margin mean compared to last year? Well, we start off with a margin last year of 22.7%. The share-based LTI programs didn't have any impact this quarter, as you can see. But we did take, as already mentioned, items affecting comparability, restructuring costs in Vacuum Technique and Industrial Technique. sek 83 million for Vacuum Technique, sek 40 million for Industrial Technique. Acquisitions were dilutive by a certain diluted the margin somewhat. Then we have negative currency impact, which is quite important and further dilutes the margin. If you then take all of these different components into consideration, it turns out that the organic development of the margin is basically flat. Which, considering the circumstances, the volume drop that we experienced, as you can see, by SEK 500 million, that we basically remain on the same margin, you could say, if we didn't have the other impacts on the bottom line. With that, I would like to move to the next page, slide number 14, to go a bit into detail on the different business areas, because there is a picture on the total group, but if you look into the different business areas, then the picture becomes a little bit more mixed. First of all, if you look at Compressor Technique, even if maybe I shouldn't be the one saying that, but I do believe that it's a fantastic performance that we see in Compressor Technique, moving the margin from 24.9% to 26.1%. With quite a strong drop-through from the additional revenues that were generated. Slight positive currency impact as well, and then a slight dilutive effect from the acquisitions. In Vacuum Technique, we moved from 22.8% to 19.3%, which is quite a big deviation, you could say, from what we had last year, but in fact, besides the restructuring of SEK 83 million and also a dilutive effect of the acquisitions, the biggest impact to that margin is, in fact, the currency effect. And that is driven mostly by operating exchange differences in the business area, in fact, giving quite a big impact on the margin. And if we take that away, then in fact, the drop in volumes is actually countered, you could say, by not a decrease in profitability, but actually even a slight increase in profitability. So as a result, we actually have an improvement of the margin from an organic perspective within Vacuum Technique. In Industrial Technique, we move from 22.5% to 20%. Also here, we have the restructuring cost, as already mentioned, which have an impact of 0.6% on the margin. Acquisitions are not really so material, but also here a negative impact from the currency, mostly linked to the development of the Swedish krona versus the other currencies. And therefore, we see a dilutive effect as well. Then we also see, let's say, a negative drop-through in Industrial Technique. There is a volume decrease, revenue volumes are down, and that is not, let's say, answered by a similar reduction in the cost immediately. And therefore, we see this negative impact diluting the margin to now 20%. And of course, that is one of the reasons why we have chosen to take measures within the business area to make some restructurings. And we will, of course, evaluate, like we do in Vacuum Technique as well, how these develop and how the savings are materialized in the coming quarters, and if we need to make further adjustment, the business develops in the coming quarters. Then moving on to Power Technique, we go from 20% to 18%, as Vagner already mentioned. We are, of course, comparing to an almost stellar quarter last year, in the sense that we had an absolute record profitability in Q3 last year. We would love to repeat that, of course, but this quarter, that was not feasible. We also see the continued impact of acquisitions during the first year being dilutive, like in the other business areas. Currency effect is basically quite mild, only slightly negative, but not really material. And then we see the impact again from the lower revenue volumes that are not immediately followed by an adjustment in the costs. But on the other hand, also, the fact that you remember that in the last quarters, we have also indicated from the cash flow perspective mostly, that the higher fleet has been increasing. We have been investing. There are two reasons for that. On the one hand, we have, let's say, slowed down a bit the investment pace during the COVID years, so we have a bit of a catch-up to do. But secondly, from the capital markets there, you might remember that we are also trying to work on new, more adjacent areas. For example, it could be rental of industrial cooling temporarily or industrial gas generation on site, for example. And in order to be able to answer the request from the customers, we of course need to build up some fleet initially. That is not immediately corresponding to revenues at the same time. But of course, the intention is that that will improve and that we will see a positive impact over time from these investments we have been making. But I think that basically gives a bit more color on the respective margin development of the different BAs. I move to slide number fifteen on the balance sheet. There, I think there is not so much to comment about. We see an increase on the intangible assets compared to December, which is, of course, related to the acquisitions we've been doing. We've closed again ten acquisitions in the quarter, as you saw. We also see the increase on the rental fleet, which I just commented to, and also, the impact of the investments we have committed to with regard to property, plant, and equipment. One particular project that stuck out this quarter is the continued investment in our new Wuxi plant, which will be inaugurated spring next year. Then the last point on the asset side would be the increase of the cash, which is, of course, related to the positive cash development from our good cash flow that we have seen. On the liability side, I would say the equity, of course, is affected by the positive profitability that we have been generating over the year. I move on to the cash flow. I think operating cash surplus is quite stable compared to the same period last year. We see a slight increase in the taxes paid this quarter. But I think the main point to highlight here is the change in working capital, which was last year almost SEK 1 billion negative, and this year we see a positive impact of plus SEK 1 billion. So of course, that has a positive impact comparing the two periods of SEK 2 billion, and that is also why we end up with a SEK 9.1 billion cash flow from operating activities, slightly offset by increased investments in rental fleet, and as well, the investments of property plant that I just referred to on the balance sheet as well. So that puts our operating cash flow at a total of SEK 7.5 billion for the quarter, a 46% increase year-to-date from SEK 41 billion. And then you can also see from the year-to-date numbers that we have basically spent SEK 5.2 billion on new acquisitions. I think that more or less sums up, I would say, the comments on the financials. Maybe one last point with regard to that is the outlook for the exchange differences in the result for the coming quarter. As you noticed, this quarter, they were relatively high. All things being equal, and of course, I can't really predict the exact development of the exchange rates in the coming three months, but all things being equal, we expect that the currency exchange impact will be significantly smaller, possibly around one third of the current, even though it would still be slightly negative. So with that, I've come to the end of adding some comments to the financials, and I would like to give the word back to Vagner to comment on the near-term outlook. Thanks, Peter. Regarding to the near-term outlook, I think, from Q2 to Q3, during Q3, I think it has not become easier to predict or to give you guidance. Because if we look to the world, there are quite a lot of things ongoing in the macroeconomy, the global economy, some conflicts ongoing in the world that has brought more uncertainty. And then when we look to our business, we saw a little bit more hesitation from our customers to place orders. So then, if we look to our industrial compressors together, general industry in Industrial Technique and general vacuum, some parts are flat and some are negative, and that is a big part of our business. And then, together with the automotive that has a negative, let's say, a little bit softer market, and also construction, a little bit softer, and markets. So those are a little bit flat, feel negative, and then we still have a positive outlook for semi is still growing. We had positive development in orders received and a possibility to continue to have a positive development. So if we combine all that, I think we have the picture that we have now. Of course, this is not a straight projection of our orders received. What we are trying to guide here is on our customer activity level, and we also need to consider that between Q3 and Q4, we do have some seasonality. We don't have a specific number around that, but there is some seasonality. And then, if we exclude seasonality, currency, and large orders, so then the underlying customer activity, we believe that will weaken somewhat, and that's how we have built up this near-term outlook. So it's important to say we don't see a drop of the cliff scenario. That's what we are communicating. This is not what we are communicating here. I think the word somewhat is important here. Okay. Thank you, Vagner. And with that, we have come to the end of our presentation. So now it's time to open up for questions. Well, maybe just this- If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Daniela Costa from Goldman Sachs. Please go ahead. Hi, good afternoon. I hope you can hear me well. Thanks for taking my question. My one question, I wanna focus on compressors, and just wanted to understand a little bit more on the sales. The 2% organic looks relatively low compared to where we were last quarter and where the comparables seem to have been getting easier. Can you disaggregate a bit more? I know you do on orders mention the gas and process part has been weaker, but is that also what has maybe slowed down on the revenues, and you see that as temporary or maybe has sort of like more of a trend? Yeah. Thank you, Daniela, for the question. Yes, indeed, we do have a good level of orders on hand, and gas and process, and not only gas and process, but gas and process and oil-free compressors, they have quite long lead times. And we also got some orders that it's really for the marine business, for LNG cargo, for instance. This is really long-term. So when those orders will come in the future, those sales will come in the future. I think that is still there, is still valid, and we don't see huge levels of cancellation. The revenue will come in the future. So just temporarily depressed because of the lead times on the sales? You have that. I'd say that is the biggest part of that, lower revenues. Got it. Thank you very much. Thank you, Daniela. The next question comes from John Kim from Deutsche Bank. Please go ahead. Hi, good afternoon. I'm wondering if we could talk a little bit about Vacuum Technique. Can you give us a bit of color on the order intake growth in the quarter? Do you see it's, I know Asia is over-indexed here. Do you see that more as a China near shoring story, a natural recovery in demand, or is it more of a push to memory build-out? Thanks. No, I think that in the order growth was quite relevant in Asia, but not only coming from China. I think that comes from the countries where the semiconductor is active. I think mostly, I would say in all of them, we had good, positive order development. And then followed by Europe, that we had also some good orders for the semi market, and while U.S. was a bit on the weaker side. Okay, just a quick follow-up. Can you give us any color on the age of the VT backlog, if it's changing at all? I'm sorry, could you repeat the question? We didn't fully understand it. The line is not so fantastic. Sure. Can you give us any color on how the age of the VT order backlog has changed? Is it fairly constant or is it changed year-on-year? I think the backlog has been going down. Let's say we don't have orders in delay. I think that we don't have. We are back to normal levels when it comes to the order book. Thanks so much. Thank you, John. The next question comes from Gustaf Schwerin from Handelsbanken. Please go ahead. Yes, hello. Thank you. Gustaf Schwerin. Can I ask on the vacuum margin and the drop through now in Q3? If I go back to Q2, we were discussing the negative volume effect there, and it sounded like you had some under absorption when you had depleted the backlog. I think leverage now looks much, much better. So what is the delta there quarter on quarter? Thank you. Yeah, I think the drop-through is indeed quite a bit better now. Quite a bit. It's not exceptional either, of course, but we've seen an improvement, and as we already indicated, we've already started to take measures to be more cautious on the cost side without necessarily initially taking immediate restructuring actions. Then we have also started the restructuring process at the end of Q2, as you know. I think that is partly a reason why we see some positive improvements on the Vacuum Technique up to now. Of course, we continue with the restructuring activities mostly on the general vacuum side, in order to make sure that we continue to right-size the organization for the business level that we are able to do there. But I think that's the main reason for the improvement of the drop-through. All right. That's very clear. Thank you. The next question comes from Andrew Wilson from JP Morgan. Please go ahead. Hi, good afternoon. Thanks for taking my question. I just wanted to ask on the gas and process. I guess on the demand side and on the sort of the pipeline and the underlying activity, seeing appreciating that the orders were down, I think, both year on year and sequentially. Like, is that just a function of timing, and is the pipeline sort of every bit as good as you would have said it was six months ago, 12 months ago? Kind of, sort of, choose the timeline. And then just to clarify on the answer to Daniela's question earlier. On the lower revenue in the Q3, which is a function of maybe the phasing of some of these orders, like, would you expect that to bounce back in the Q4 to kind of the level we've seen in the Q2? Or do we need to be thinking that a lot of these orders are actually a lot longer dated, and therefore it's more support for kind of 2025 and 2026 numbers, not necessarily Q4? Hopefully, that was clear. Yeah, if I can comment on the last question first, I think those are long-term orders that we do have orders for 2025 to be invoiced 2025 and 2026. I think that is important point. Then when it comes to the demand for the customer design, I think we do see the projects. I don't see projects being canceled. The pipeline is quite good, but I think the decision process is slower. There is an impact from the U.S. election, depending on the direction. We do have good activity levels around energy transition technologies or lower CO2 footprint, and some people are waiting to see some clarification. Some companies, I mean, clarification on the scenario, but the portfolio remains solid. We have a solid project portfolio. Thank you. Thanks, Andy. The next question comes from Klas Bergelind from Citi. Please go ahead. Yes. Hi, Vagner and Peter, Klas at Citi. So on the outlook, I want to zoom in a bit more here. In VT, industrial and scientific seems to be bottoming a bit when we look at the quarter on quarter commentary in the reports, and these orders are growing in equipment quarter on quarter, and that seems to continue as per your comment, Vagner, at the end. Even the orders and commentary also don't look too bad. In IT, automotive orders are of course down a lot year on year, but down somewhat quarter on quarter. So is it mainly industrial and IT and weaker demand in CT, where you see incremental weakness ahead, and is it mainly gas and process compressors, or do you also foresee more weakness on the industrial compressor side? Thank you. Yeah, I think that, that's quite a mixed picture. I confirm on the vacuum side, the industrial Scientific Vacuum is indeed on the weak side. On the compressor side, I think. We see on the industrial compressor side, we see a bit more hesitation coming from the market, and I think that is the best word for me to describe what we see now. Projects, we see good project, but much more hesitation, and we need to see what is gonna happen in Q4, and that's why we had that outlook that is somewhat lower. Yeah. Do you also think that that impacted revenues? I heard what you said on LNG, Vagner, when it comes to longer lead times, but do you also think customers on the industrial compressor side were pushing out the sort of delivery timing schedule, or is that not happening on revenues? Yeah. We see some projects being postponed. If the project is postponed, of course, sometimes we don't need to deliver the equipment. We don't need to deliver the equipment. I think that has an influence, especially coming from China. Thank you. Thank you, Klas. The next question comes from Sebastian Kuenne from RBC. Please go ahead. Yeah. Hi, gentlemen. Thank you for taking my question. The question relates to IT. Here you have a, in my opinion, relatively small restructuring charge, given what we hear on the battery side in China and automotive CapEx side in China. Could you maybe tell us why you took a relatively small adjustment here, and whether you see other areas to offset that soft auto CapEx side of your business? Thank you very much. Yeah, well, I mean, first of all, of course, we have tried to make a thorough analysis of the business areas performance, and the individual divisions have done that for themselves. We also need to consider that, you know, we work with highly talented, highly skilled people. That takes years to develop the competence and the understanding of the applications in the market. And so when we need to take restructuring measures, we don't take the decision very lightly, and we are very cautious about especially reducing the number of people, in order to make sure that we don't lose some of these competencies and skills that we have built up for many years. And of course, will take again, many years to build up if we need to recruit them back. So this is a bit maybe kind of surgical approach that we apply in order to avoid harm to the long term. What I need to add, of course, is that this is a step that we have taken now in this quarter. We evaluate continuously how we feel about the performance of the respective divisions within the business area. And then again, on a kind of a piecemeal approach, we will decide in the coming quarters if we need to do more or if what we have done has been sufficient. But we prefer this more surgical approach. I don't think the results overall are dramatic and have fallen off a cliff yet. We try to be proactive, but at the same time, we try to make sure that we protect the competence and the skills of our workforce, which is basically our biggest intangible asset we have, actually. Understood. I have further questions, but I will go back in the line. Thank you. Thank you, Sebastian. The next question comes from Andreas Koski from BNP Paribas. Please go ahead. Thank you, and good afternoon. I have a question on Vacuum Technique. This was, again, another quarter with a book-to-bill well below one, and you were again taking restructuring costs. We saw restructuring costs also in the second quarter, and you are now talking about the normalized backlog. So I just want to understand if you are, with these restructuring costs, adapting the business to a revenue level in line with the order levels that we have seen in recent quarters, or how to think about the revenue development going forward? Thank you. Yeah, I think the restructuring costs, of course, are still in both quarters, actually, mostly focused on the industrial and Scientific Vacuum area. I think that's very important to underline. On the semi side, I think the order development is quite positive, and as Vagner has already indicated, the backlog has been reduced quite significantly compared to, of course, the enormous backlog that had been built up during this enormous demand spike that we have seen during and after COVID, given all the supply chain issues we faced at the time. So from a delivery point of view and a revenue point of view, we are able to deliver quite correctly, let's say, what the customers expect from us when they place certain orders. In the semi side, we have seen good growth over the quarter, with, of course, some differences across different geographies, but still overall very solid. The measure that we are taking are mostly, if not purely, directed towards the industrial and scientific related vacuum activities. And there, after the first quarter initiative we had taken, we felt that, looking at how the result was developing, we needed to do another step, and that's exactly what we have done in this quarter with SEK 83 million. Maybe one could argue that this is also here, maybe not, an exorbitant amount, but again, also here, competence and skills in our workforce are extremely important, and we just need to make sure that we don't take a step too far, because that will cost us much more than the restructuring cost that we take. Okay. So, you're not doing this in preparation of a lower revenue level for Vacuum Technique overall? No, I would say that is not the rationale behind the restructuring cost. We are, especially, and again, in general, if I cluster it a little bit under the term general vacuum, there, I think we have seen quite a significant drop over the last quarters in the order intake. And that, of course, will result ultimately in a lower revenue level as well. Then, of course, we are doing what we need to do in order to protect the profitability of that part of the business, and that's what we have been doing. On the semi side, we are fine from an order perspective. We believe with the growth we have seen, and that will also materializing the necessary revenues to support the margin in the future. Great. Thank you very much. Thank you, Andreas. The next question comes from James Moore, from Redburn Atlantic. Please go ahead. Yes, hi, everyone. Maybe a question for Peter. I'm just looking at the currency impact to Vacuum Technique, and it's quite a big number, the EBIT impact is bigger than the revenue impact. There's obviously quite a bit of transactional in there. I've got some details from a decade ago on Edwards, but I guess the composition of cost and revenue by countries changed. Is it possible to give us a flavor for the transactional flows? I'm just trying to think, what percentage of sales is long dollars these days? And is it about import-export, or is it more because the vacuum industry sells a lot, even in Europe, in US dollars? And is it that, or is it more the import-export side driving it? Yeah. Thanks, James, for that question. I think it's of course an obvious point to raise, considering the big impact it had on the drop-through in or on the margin development for Vacuum Technique. I mean, to simplify maybe a little bit too much, but still, I think, fundamentally that is what the reason behind it. We do business in, I mean, the business concentrated in a number of markets, as you know. We have a couple of countries in Asia, the United States, also in Europe. We have some, let's say, key markets that really where all the business more or less concentrated. The rest of the other countries is much more limited for a Vacuum Technique. And as you correctly indicate, the invoicing across all of these, especially the big countries in the mix, the invoicing is done almost exclusively in US dollars. And that means that today, just like in the past, in fact, the Vacuum Technique is a little bit more exposed to these kind of currency fluctuations in the transaction effect, as you referred to, than the other business areas who are much more spread out and who have much more, let's say, diversified basket of currencies in their transaction effect. Has that changed over time, Peter, or has it always been? Are we talking 80%, 90%, 100% dollars? Well, the exact percentage I wouldn't be able to give you, but I think that has been the case over time, basically. You might remember that a number of years ago, long before I took the role here, we've had very high operating margins in Vacuum Technique. You might remember that from time to time, we remind, let's say, the market about the fact that when the margin was up to 25%-26%, it was mostly driven by exceptional high positive currency effects. You could say that, unfortunately, at this point in time, we see a little bit the opposite. Very clear. Thank you. You're welcome, James. The next question comes from [Tusang Mann] from Bank of America. Please go ahead. Hi, sorry, it's actually Ben from Bank of America. I wanted to ask a little bit more on the automotive outlook and Industrial Technique. Could you give us a little bit of color? Obviously, it slowed in Q2, that's continued in Q3. Is this a new level going forward, and what are the conversations that you're having with customers like, and any color that we can then into Q4, into 2025 around the demand levels for the automotive exposure? Thank you. Yeah, I think it's a negative outlook from what we can see from the projects side. There are projects, but there are less decisions being taken. I think the EV adoption is a part of that, if we don't see that going up, and I think clarifications in Europe are necessary for that. And also you have the consumer confidence playing a role on that. But that said, I think on long term, we are quite confident about the market because I think we have been well positioned. There are new technologies coming into the market, the unbox concept. So and we are preparing, we are deploying R&D as well to be ready for those changes, more flexibility in the production lines in the high end. We are also getting ready for that. I think for long term, we are well positioned in that market, but it's very difficult to predict now, the short term, so. Okay, great. Thank you. The next question comes from Rizk Maidi, from Jefferies. Please go ahead. Yes, good afternoon. My question is on Compressor Technique margin. I think this is one of the highest, if not the highest, quarterly margin ever achieved by this division. I'm just wondering whether you could tell us a little bit what what's driving that exceptionally high organic drop-through, and more importantly, just understanding the the price and and mix contribution there. Thank you. Well, I think, first of all, of course, we continue to have a positive revenue volume effect that I think is undisputable. Talking about price without going into too much detail, because of course, it's always a like for like calculation we make, and in the end, there's much more to it than just like for like. But in Compressor Technique, I would say that we continue to benefit from a positive price effect overall. Of course, the current price effect in the business area is not the same as it was about a year ago, one and a half year ago, when inflation was really hitting all-time highs in the last twenty, twenty-five years, but still possibility to continue to increase prices. Secondly, of course, there is the impact of the new product line that we introduced and the R&D impact, you could say, where we provide more value to the customer, and we especially provide a lot of energy savings, not only with the compressors but also with service activities. So as a result of that, we are able to monetize on that concept. So I think that is the reason for that, and of course, with the additional volume and also a kind of stable cost structure and a solid gross margin to begin with, we are able to get quite a lot of leverage out of that. So I think that is basically the reason. Of course, like we have said many, many quarters about the drop-throughs, sometimes they are a bit lower, sometimes they might be even slightly negative. When we talk about long-term drop-throughs, then I think 30%-35% is what we generally think about. Okay, what happened this quarter is rather exceptional, and that happens also from time to time, but it's not something that one should model into the calculations. That is rather unusual, I would say. Okay, thanks. So just to understand, it's a volume and a price effect more than a mix effect, right? Yeah, I would say so. Okay, thank you. The next question comes from Sebastian Kuenne from RBC. Please go ahead. It's a brief one. I have some incoming questions from investors who did not quite hear your comment on the outlook. So I wrote down: If we exclude seasonality, FX, and large orders, then customer activity is expected to do what exactly? Can you repeat that, please? That's all I would like to know. Thank you. Yeah, the customer activity level will weaken somewhat. Weaken somewhat, yeah. Yeah. That's excluding, as you said, seasonality, FX, large orders. Yes, as always, I mean. Yeah ... this is, of course, the way it is phrased, always, every quarter. Yeah. And it's. But there was a misunderstanding in the call earlier. That's why I just want to clarify that. Perfect. Thank you so much. That's all. Thank you. I just wanted to repeat that this is not different to any other quarter in the way we have communicated. Yeah. Thank you. Thank you, Sebastian. The next question comes from Jonathan Day from HSBC. Please go ahead. Hi. Good afternoon. Thanks for taking my question. It's, again, so coming back to Vacuum Technique, and was just wondering if you could perhaps comment on capacity utilization. I think in Q2, you said that, you'd seen a slight increase in sort of utilization rates, but still far off from the higher levels that you'd experienced historically. And I was just wondering if that trend has continued, in Q3, or whether there was a change in trend. Well, I can take that if you want, Jonathan. So I think we have seen a gradual improvement in the utilizations, and I think that is also reflected in the development of our service business, because, of course, the service business benefits from better utilization in the fabs. But it doesn't seem to be of such a nature that it immediately also triggers initiatives from the larger OEMs to make big investments. Rather the opposite, I would say. We have seen in some of the research material that many of these larger players in the semiconductor space have decided to postpone the start or postpone the build-out of their new fabs. And that might imply that utilization is maybe not yet at the level that they would like it to be. But we have seen a positive impact from better utilization in the fabs. That is true. Great. Thank you very much. You're welcome, Jonathan. The next question comes from Magnus Kruber from Nordea. Please go ahead. Hi, Magnus here from Nordea. Just a couple of questions from me as well. On the same line there with semiconductors, obviously saw a quite good sequential acceleration in the orders driven by semi there. Is there any reason to believe that this should ease going into the fourth quarter, considering what you see in your own pipeline? Yeah, I think it's difficult to comment on that, but I think it's also fair to say that we had a low comparison base in Q3 last year. I think we can start with that. I think there is a... Let's say that the environment, when we said in Q2 that we would not see a dramatic uptick, it's gonna be a slow improvement in the market. I think that we haven't changed our vision. If there is an improvement, it's gonna be a slow improvement. Perfect. Thank you so much. Okay. Thank you, Magnus. And, with that, I believe we have come to the end of this third quarter earnings call for 2024. I would like to thank all of the participants for raising the very interesting questions and also for being very disciplined in asking one question at a time. We look forward to hearing of you, of course, in the coming weeks and months, again. And thank you again for participating in the conference call. Thank you. Goodbye.