Good afternoon, ladies and gentlemen. For those that don't know me, my name is Marcus Whitehouse. I'm the CFO here at Concentric AB. It's my pleasure to thank you and welcome you to our Capital Markets Day 2023. For those that are joining us in the room, welcome. Also, an extended welcome to those that are joining us on the webcast. We should have an interesting discussion this afternoon on our plans for the future. Good day. Thank you for standing by. Welcome to Concentric Capital Markets Day. At this time, all participants are in listen-only mode. After the speakers presentation, there'll be a question and answer session. To ask a question during the session, you need to press star one and one on your telephone. To withdraw your question, you have to press star one and one again. Alternatively, you may submit your questions via the webcast. If you wish to ask a question via the webcast, please type them in the question box and click Send Me. Please be advised that today's conference is being recorded. I would now like to hand over to your speaker, Marcus Whitehouse, CFO. Please go ahead. Do you want to take it from the top? Okay, I'll continue. There's a legal part within this presentation that I'm afraid we have to get through before we get to the main event. Please bear with me. Read a text. It is a disclaimer. Please note that some of the information you'll hear during the discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, Operating Expense, Operating Income, Taxes, Capital Allocation, and future business outlook, including the impact of Macroeconomic uncertainties and conditions which could change the business's outlook or forecasts. These statements involve risks and uncertainties that may cause our actual results or trends to differ materially from our forecasts. We refer you to the annual report 2022 risk section and any associated press release with that. We've got the legal part out of the way. Let's get into the main part of our Capital Markets Day. I would like to introduce you to Martin Kunz, the CEO of Concentric, who will now start the process of you understanding our strategy for the next five years. Martin. Thank you very much, Marcus. Also from my side, very warm welcome here in Stockholm and everybody out there who joins us virtually. Let me give you a quick overview about our strategy for profitable growth. That's the first part of our agenda today. We go through the individual pillars of our strategy, how to develop our base business, Electrification, both on-highway, off-highway, market expansion through new applications, our expansion plans in India, acquisitions. We move on to ESG and sustainability, which is an integral part of our operations. We will go into our financial strategy and targets and close off with a summary before we go into Q&A. The whole event is expected to be roughly 2.5 hours. It depends on how many questions we will get. To start, I would like to thank all Concentric Employees, especially those who are in operations, supply, sales, and our customer care organizations, for their relentless efforts and agility over the past two years in coping with significant demand, high inflation, managing supply chain bottlenecks, and delivering with a sense of urgency for our customers and shareholders. We wouldn't be where we are as a company today without their commitment and dedication, and it's humbling to be their leader and tell the great story that we're about to share with you today. Moving forward in the agenda, first, I would like to introduce our Concentric team here with us today. In our Capital Markets Day, we have assembled a strong team of Concentric leaders with me here in Stockholm. You have already heard from Marcus, Mark Whitehouse, our Chief Financial Officer. Jennifer Todd-Wilson, Vice President, Human Resources and Sustainability. We have Boris Gavric, who is Senior Vice President, Engines for Europe and Asia and Advanced Products. Brandon Larche, who is Senior Vice President, Engine North America, and Adam Staite, our Director of Corporate Development. Those all will present today, we have also other leaders in the room here with us that are available later on in case of questions. Not presenting today, it's Riccardo Cavallari, our Vice President for Operational Excellence, Paul Shepherd and Director for Product Engineering in the Engines Division, and Fernando Palmero, our Senior Vice President for the Hydraulics Division. I'm proud to lead this team. I think we have a fantastic team, and I believe that they all bring the skills and capabilities to create the next wave of value for Concentric. With that, I would like to start a bit on a history journey. We have a strong platform on which we will deliver significant growth. If we look back into the history of Concentric, starting with 2011, with the public listed, I think it was in June 2011. For a decade, the company has always provided stable returns based on a stable size, market-leading margins, bolt-on acquisitions, strong cash generation, and ultimately has provided impressive shareholder returns. That's our foundation. Based on that, we have been embarking roughly 18 months ago on the next part of the journey, which was actually starting with the transformational acquisition of EMP in October 2021, followed logically by a successful integration of EMP into Concentric. We have enhanced our Electrification capability. We have new leadership, and we have established a culture of growth, which we obviously, together with our strategy today, will present to you in this event. Now we're embarking on the next part of the journey, which is the execution of this strategy, and that means it's about profitable growth. We will continue to have excellent strong cash generation from our base business. We will have significant Electrification growth. We will penetrate also new markets, which we hear about later, and we will achieve profitable growth. All of that will be built on the culture and approach of One Concentric, where we're leveraging all our capabilities across our sites, our regions, and also our teams. Let's talk about the transformation or the transition, however it is called in Electrification. It's a multifaceted electric transformation. We have the relevant technologies, the end markets and the geographies, and it happens basically in many parts of the world at the same time. We have societal changes, climate changes, regulation that drives change, and the Electrification of commercial vehicles. However, the pace of Electrification will differ between the different market segments we supply. On-highway is currently at an inflection point, and Electrification in general will be a gradual process. It's not binary. It happens with different pace in different parts of our end markets. The robust demand we have from our internal combustion engine-based business will remain well into the 2030s and beyond, particularly in off-highway. When we talk about what we hear from the market and we can basically take almost any heavy-duty truck manufacturer, Volvo among them, they say by 2030, it's about 50% of the heavy-duty trucks will be electric. That's public information. That's good to know for our Electrification growth strategy. It also means, on the flip side, 50% of the trucks will still be internal combustion engine, and some of the players out there will probably move faster and others will move slower. That means Electrification will happen in steps, and we will support our customers in all of these steps where regardless of where they are at this very moment or in two, three, or four years from here. What does it mean for our value proposition? Our businesses are in different stages of their life cycle, and they provide different but complementary opportunities. Let's start with our base business. It provides stable growth, strong margin, and has an excellent cash generation. Our electric business offers significant growth, equally strong margins, and has new market opportunities. Just look at what we published over the past days. On Friday, we published an important strategic win on basically a Fuel Cell, Hydrogen Fuel Cell truck platform worth, you know, more than 200 MSEK. That's a perfect example of how we execute on our Electrification strategy. Yesterday, we published an equally important business win in our base business. 55 MSEK on an annual basis over a period of minimum 10 years. A very nice business that we got awarded from one of our global customers. Those examples show we are efficiently executing on that strategy already. Let's move on into how can we accelerate profitable growth? We have a clear strategy for Electrification opportunities and at the same time grow our base business. The message from our customers is clear. They seek a partner they can trust in this transformation, regardless of where they are on that very journey. They want reliability of products with long lifetime, a supplier that has a global footprint and can support them, in particular, the big Global OEMs, wherever they manufacture their products. They also want an innovative partner and a company that, like us, offers technology leadership. We are that trusted partner. We serve our customers globally. We are co-committed and known for highest quality of products and our design that allows customization to what the customer really needs as a solution. This is a fantastic opportunity for us. We are shifting the mindset with this new strategy towards a culture of profitable growth throughout our entire business. For the execution, we have developed these five pillars. We also call them strategic move, which is starting how to grow and develop our base business, followed by accelerating our Electrification, expanding into new markets and geographies and applications, investing in a platform for growth in India. Finally, the last pillar is an active acquisition strategy. I'm looking forward to go through that strategy with all of you and the rest of the team this afternoon here in Stockholm in detail. Let's have a look at Concentric, where we are at this moment in time. I mentioned already before, when you look at our footprint, we offer. Sorry, I need to go away. We offer a truly global footprint with sites in America, in Europe, and also in Asia. If we include Alfdex, the joint venture we operate together with Alfa Laval, we are really covering the regions where our customers are operating, and that's a big benefit compared to many other suppliers and competitors out there. Let's look for a moment into 2022. We achieved record sales of 4,056 MSEK, the highest in the history of the company. 677 MSEK of operating income, 16.7% operating margin. 17% of our global sales, total sales came from electric product and just over 1,200 employees. Let's have a look at the business now from a different point of view. Let's look at our end markets. This is the first time that we speak about a new end market that is exciting for us and that we want to share with you as it is an area where we really believe there's a lot of growth opportunities for us in the future. It's called Energy Systems, where in 2022, we have already achieved 2% of our revenue. The other segments you're very familiar with: construction, truck and bus, agriculture, and industrial. We're also offering now an additional view on those markets with how much electrified product we are selling in each of those segments. You see here clearly what I said before, that the different markets are electrifying with a different pace, and we are there to support our customers regardless of where they are in their journey and regardless of what technology they are using now that they will use in the future. Let's have a look at our product range. Innovation is at the core of all we do in technology. Here you see our electric products starting with e-water pumps, e-oil pumps, fans, alternators, complete thermal management systems, e-fuel pumps. On the hydraulic side, we have Electro-Hydraulic Steering and Power Packs. On the mechanical products, we have in the engines division, mechanical pumps, clutches, and precision machine components. In the hydraulics division, Gear Pumps, low noise pumps, and Transmission Pumps. With that product portfolio, we're perfectly positioned to support our customers in many different applications, as I said before, regardless of where they are on their journey towards Electrification. What has made Concentric strong in the past? We deliver value, we continue to do so with strong margins from our base business. We continue to target profitable niche markets and maintain strong partnerships with our customers. We strive to be a global leader across all our primary end market to deliver true value through high quality and innovative products. Having said that, what makes us different to our competitors? Our competitive advantages are very clear. First of all, the global footprint. I mentioned that already. Many of our regional competitors cannot serve global customers because they don't have the footprint. We have a clear strategic focus on commercial vehicles. That means we are fulfilling the challenging reliability and lifetime requirements of our customers in that commercial vehicle market. We also offer customized solutions and develop customized customer-specific solutions for our customers exactly to their need, which makes us very different to other competitors out there who are just offering off-the-shelf products. Last but not least, again, highlighting our press release from Friday about this important strategic win on hydrogen Fuel Cell truck platform, we are really a technology leader. I would like to show you a small video now. It's about two minutes, and it highlights how Concentric with our leading electrical products and solutions provide value to our bus manufacturing OEM customers. Here we go. Here you see all those nice products now really applied to a particular segment in the market where we really provide a lot of added value to our customers. Let's talk now about the strategy to accelerate growth. As I said before, we have developed these five strategic moves underpinned by a stable base business and strong margins. I'm highlighting now the element of culture. There is an important culture change journey that we have embarked on. We're instilling a mindset and culture of growth on top of operational excellence and margin discipline. The first pillar is developing our base business, followed by accelerating Electrification, expanding into new end markets and applications, building and investing a platform for growth in India, and finally, an active acquisition strategy. Let me provide you a quick overview how we continue with today's presentation. First of all, Brandon will walk you through the development of our base business strategy, the actions we have there, and how we not only develop this business, but also continue to grow it. Boris will highlight the details of our Electrification strategy. Adam will speak about the development of new markets and applications, and also explain how this whole strategy is supported by strategic acquisitions. Jennifer will explain our sustainability roadmap as an integrated part of our operations. Last but not least, Markus will explain to all of us how it all comes together in the financials and how, based on historic financial performance as a solid foundation, we're driving future financial outperformance. With that, I hand over to Brandon, who will walk us through the development of our base business. Brandon, take it from here. Thank you, Martin. You're welcome. Thank you, and good afternoon, everybody. My name is Brandon Larche. I am the Senior Vice President of Engines North America. With me, I bring 18 years of experience at EMP, and I'm excited to join this journey with Concentric. I will be discussing the first of five strategic moves with our base business development and operational excellence initiatives. As Martin discussed, Electrification will be a major growth pillar for Concentric. Today, Electrification makes up 17% of the revenues at Concentric, which means that our base mechanical business makes up 83% of our revenue stream. Our plan is to grow our base business at 3% above the market. This is extremely important for Concentric, and I will discuss how we plan on achieving this. We will achieve this as demand for mechanical pumps will remain significant, in particular in the off-highway. We will continue to win significant contracts in our base business, supported by two recently announced North American machining opportunities, as well as two recent coolant pump contract awards in India. Our base business will continue to deliver market-leading margins, which will generate strong cash flows to support our strategic investments to help facilitate our future growth initiatives. As I just stated, our base business will continue to deliver growth at 3% above the market, and I'll provide a few examples as to why. Within the engines division, new legislation will continue to provide new growth opportunities through product innovations to meet required legislation requirements. As an example, the Euro 7 legislation requires improved fuel economy targets. As a result, we have developed new technologies to meet these requirements, such as our variable oil pumps, Two Speed Clutch, coolant pump clutches, clutch steering pumps, and we continue to develop new, innovative, and more efficient products to meet our customers' needs. Additionally, new legislation will provide additional growth opportunities in emerging markets, in particular India, with new BS-VI and BS-VII legislation, which is further evidenced by the two new coolant pump contracts recently awarded in India. Adam will later touch on these opportunities in more detail. Within the Hydraulics Division, much like I just discussed in the Engines Division, we continue to innovate and grow market share by launching new performance-enhancing products to our customers. Overall, slower Electrification in Hydraulics, coupled with higher power density requirements, will drive ongoing demand and growth opportunities for the Concentric base business. One way we're doing this is we are also solving our customers' problems by combining our technologies in new and innovative ways. Our customers are looking for more cost-effective and fuel-efficient solutions. As Martin stated, following the One Concentric culture, collaboration between the Engines and Hydraulics divisions allow us to provide value-creating technologies to our customers. As an example, we have taken our Dual Cone Clutch technology and combined that with our hydraulic steering pump to form the combined Dual Cone Clutch system, which enhances value to our customers by reducing fuel consumption by 2% and CO2 Emissions. This product is currently at prototype stage for a global OEM customer. We will continue to combine technologies and work collaboratively to deliver market-leading value to our customers. I'll talk a little bit about the ongoing mechanical demand. While global Electrification is rapidly evolving in many industries, there are several key market segments that Concentric supplies that will electrify gradually. Thus, with the slower pace of Electrification, it will ensure ongoing demand for mechanical products, resulting in a drive for continued growth in our base business for years to come. As you can see from the charts behind me, the construction and ag markets see very limited penetration of Electrification due to high power density requirements. If you move over, there's been some evolution in the heavy duty trucking market, but this industry is expected to lag behind both the medium duty truck segment and the bus market. Later, Boris will talk to you about the markets we see more rapid growth, but these markets here will drive our base business, and we see very very slow growth in Electrification, thus providing strong demand for our base business moving forward. All these factors will continue to drive the need for ongoing supply and investment in the base business with mechanical products for Concentric. It also shows the need that we need to continue to prepare for the shift from mechanical to electrical products in the coming years. I'm gonna shift my focus from our base business over to our operational excellence initiatives. With the acquisition and integration of EMP in 2021, and organic growth in the business, we have significantly more size, scale, and capabilities to help improve on our operational excellence initiatives. First, strategic sourcing will allow us to combine our supply chains across the Concentric group. Through increased purchasing power, we can utilize our global sourcing organization to drive supplier performance and reduce our supply chain risk. Next, we'll optimize our manufacturing footprint and continue to build on our core capabilities. This will drive opportunity for optimization, being closer to our customers while creating dedicated centers of excellence. Through lean transformation, we will continue to leverage our best practices across all divisions and locations. We will train and develop our people to enhance our continuous improvement culture through brainstorming, idea generation, and problem-solving in order to keep our employees engaged. Finally, we'll reduce our business process complexity. This strategy, as discussed, will drive continued strong margins, enhance value to our customer base. With that, I will now hand it off to Boris Gavric, who will speak to you about the second strategic move, accelerated Electrification. Boris. My name is Boris Gavric, I'm the Senior Vice President of Engines Europe and Asia, as well as Advanced Products. I've been with Concentric just over six months, coming from Detroit Automotive, where I've spent over 20 years. Thanks, Martin, for the introduction to the electric transformation. I'm gonna start with some slides on the electric transformation. When I think about these opportunities, I start to assess an opportunity as why. You know, why is Electrification important? The world's becoming more aware of the dangers posed by climate change, increased temperatures, increased weather events. Scientific consensus believes that CO2 Emissions are leading to a lot of these. The question becomes: how can CO2 Emissions come down? One way is through Electrification. One study that Scania did was comparing an ICE, internal combustion engine vehicle, to the battery electric vehicle. What they found was that using the energy mix of today, there's a 38% reduction in CO2 Emissions. As they continue on the energy mix through the 2030 standards, that reduction in CO2 Emissions goes to 63%. Further evolving to no fossil energy, fossil-free energy, it goes to 86% of CO2 emission reduction. This is one of the key reasons why Electrification will help reduce the CO2 Emissions. Understanding the why, how does this benefit our customers, and how does it benefit Concentric? One way it does is it increases the value to our customers. Electrified products improve the efficiency and they enhance the performance. They also provide design flexibility and integration. As well, they're designed with sustainability in mind through recyclable materials as well as sustainable suppliers. Another way that Electrification benefits Concentric is that the number of Concentric products required per vehicle will go up. The reason for this is battery cooling technology generates a significant amount of heat, and thus cooling is required. Cooling is also required for power electronics for additional cooling needs. Finally, increase the revenue generated for each product. How does it do this? Well, the electrified products are significantly more advanced than their mechanical counterparts. These three key points are gonna be the growth drivers that I reference as I go through my presentation. I've talked about the why, talked about the how. Now where is the change happening? On the medium-duty truck side, there's been significant growth. It's been a bit ahead of the heavy-duty, but there's been significant growth in the medium-duty. If you look at the amount of growth in the coming years for the entire truck market, the market is at about a 5-6% CAGR. If you look specifically at the electrified portion of the truck market, we've seen studies reference as high as 26%, and this is some of our key customers and global OEMs leading this change. If I look at the bus side, it was one of the first adopters and first movers in on-highway Electrification, and there's continued strong growth expected. If I think about what's driving this, it's the strong initiatives from Clean Vehicle Directive, Green Public Procurement, as well as CO2 emission standards from the governments. Some of the studies I've read out there show that the EU and U.S. are driving double-digit CAGRs through 2028. Another prediction shows that e-buses will have up to 70% of a global bus fleet by 2040. Another study specific to India says that India will have 10% of the global e-bus market by 2025. Finally, the industrial. It's a, it's a quickly growing one, but if you look at the full addressable market, it's much smaller in comparison to the other two markets. Expanding a little bit more on the two specifics, the medium-duty and the buses. While buses have led the way, and they are posed to overtake the ICE platforms by the mid-2030s. The total addressable market within EU and North America specifically here is significantly smaller than the medium-duty trucks that you see on the right-hand side. On the truck side, there's been technology leaders within our customer base. As Brandon pointed out, evident that the conventional ICE demand will continue on at a steady pace well into the 2030s. Our products, the electrified products, will be able to go onto the battery electric, the mechanical conventional onto the conventional ICE engines, as well as some of the agnostic products that we have that can go onto those engines as well. To further expand on Martin's introduction to our products, our products play a substantial role to our customers of all of it, Electrification needs. How do they do this? Well, they maximize vehicle performance, they improve the range, and they affect the available horsepower and fuel efficiency provided to the vehicles. The three points that I mentioned earlier, they increase the value to our customer, they increase the quantity required, which is a key for Concentric, as well as they increase the value of each product comparing to the mechanical side. They are designed with a long history of Concentric design experience and backed by long life and durable products coupled with Electrification. In a traditional ICE truck, an internal combustion engine, there would be three types of pumps used. We have the fuel transfer pump, the oil pump, and the water pump. Within this, the share of wallet would be about EUR 150. This is really where the aha moment comes when you're looking at what does it do when you're moving to a battery electric. This is a battery electric. It's the U.S. using their typical robust design, it is an e-electrified vehicle, so it has the need for an e-oil pump. It has a need for an EHS main steering unit. There's many water pumps that are required for cooling a cab chiller, battery, an inverter, the auxiliary. The significant amount of heat that's generated from the battery cooling requirements, you will need four fans for the full thermal management system. If there's regenerative braking required, you're gonna need additional need e-products there. Electrification gets us from a low base of 150 share of wallet upwards of 8,000 EUR per vehicle. This is bringing the components of Electrification, the need all together for you. The following video, quick video, is going to highlight the application and how it's benefited by the use of multiple electric product solutions. Okay. Hope that you enjoyed that video and it was able to explain the optimized EV truck and how agnostic our products are with whichever direction the markets do evolve. Moving on to off-highway. While off-highway market is lagging the on-highway Electrification, there is still an increased demand to utilize electric components resulting in greater efficiency. We have products on the internal combustion engine side, the hydraulic pumps, the water pumps, but we also have the electro-hydraulic pumps and the electric water pumps on the E-motor platform. Tailwinds in off-highway, much like on-highway, will comprise of government incentives and offer a slower but attractive entry point for existing customer base. Similarly to the truck, the share of wallet for an excavator, for an example, would be about EUR 600 when you're addressing the ICE platform. When you move to the E-motor platform, again, it becomes significantly higher, almost a tenfold amount in the offering that the Concentric E-products can offer. Same trend we have seen with the bus and then again with the truck, I believe we will ultimately see with the off-highway offering. I talked about the why, the how, the where, the what. Now who is doing this? The key technologies necessary to improve competitiveness rest in our house capabilities. We have software development engineers. They're expanding our current products and optimizing the capabilities. Not only are they developing the software for the controllers, but they're also developing diagnostic tools that our customers can use to improve the efficiency of the E-pumps and E-fans. Along that line to the right, we have mechanical hardware engineers. This is know-how and core technology that we have over 100 years within the Concentric business. We have the motor controllers. The in-house motor controller team has extensive knowledge for developing print-ready boards. Finally, Electrification team is working closely with build-to-print electric motor partners and constantly reiterating to maximize the efficiency. In one of my earlier slides, I stated that Electrification increases the value that our products can deliver to our customers, but you don't have to take my word for it. Here's a sample of some of the biggest names in the biggest markets and then what they've had to say about us. They say that we have innovated, that we're an innovative leader in providing dependable, high-quality solutions, that we've revolutionized vehicle efficiency, that we boost performance, that we cut maintenance time and cost, all while delivering outstanding customer support. We're gonna strive to uphold this reputation each day and look forward to future Electrification journey. As we continue to grow with our customers, we're also gonna look to expand and optimize our global footprint. Investing in this is gonna help us access additional high-quality talent. It's gonna reinforce our centers of excellence, create greater collaboration between teams. We're gonna provide economies of scale. It's gonna shorten the lead time to our customers. As well, we're gonna be able to expand the state-of-the-art manufacturing. Bringing it all together, the Electrification journey is an exciting one, and it has many moving pieces and a lot to offer. There are significant opportunities as I've presented in the different markets. What we've done so far is we've responded quickly to the changing market needs in developing new products. We've been able to win significant wins. I think you've seen some of the press releases over the last few months, and Martin mentioned them earlier. We've successfully integrated EMP, which has enhanced our product range and our Engineering competency. As well, we continue to invest in building our capability. All of these points will be further reinforced by the key fundamental drivers of our Electrification. We're increasing the value that our products can deliver to the customers. We're gonna increase the number of Concentric products required on each vehicle, and we're gonna continue to increase the revenue generated from each product. Together, all of these initiatives will help grow Electrification from the 17% of our book, as Brandon mentioned earlier, to trend to 30% by 2028. Thank you very much. I think we're gonna break now for 15 minute. Then we come back to Adam. Thank you. Right. Welcome back, everyone. My name is Adam Staite. I am the Director of Corporate Development at Concentric, which means that I'm responsible for acquisitions, group strategy, and I think that overlaps quite nicely with the three sections that I'm gonna talk you through this afternoon. You've already been talked through the first two of our strategic moves by Boris and Brandon. Brandon talked you through growing our base business, which is the bottom one. Boris talked you through accelerating Electrification, which is number two, and I'm gonna talk you through the remaining three growth pillars for our business over the coming years. The first one of those is expanding into new end markets and applications. We have historically sold to four key core end markets: truck and bus, agriculture, construction, and industrial. In recent times, we've started to be able to penetrate new markets more. You would have seen at the start of our presentation today that 2% of our revenues now come from Energy Systems, and that is an area that we are gonna grow our business significantly, both in that market and in other new markets going forward in the coming years. How will we do that? We've already talked to you about our range of electric products, and generally speaking, our electric products fall into the thermal management category. They are electric fans, they are electric pumps, and their primary purpose is to remove heat from a vehicle or a machine. Why is that important? It's important because any application that generates heat requires cooling. Any application where a battery or a Fuel Cell is used to store energy generates heat, therefore any of those markets are potential markets for Concentric. Now, does that mean that we'll be going out and targeting every market out there? Of course it doesn't. We are a business that has been built for 100 years on targeting market niches where we can deliver innovative solutions to our customers and deliver genuine value to our customers on a daily basis. We are looking for markets where thermal management is required, but where there are market niches that require the things that our products deliver. What do our products deliver? They deliver reliability, they deliver robustness, and they operate for long useful lives. Wherever there is a market that has those requirements for thermal management, we will be able to target those markets going forward. A good example of that is energy storage. We've already announced an energy storage win with a big customer, and that is a market that is going to grow significantly in the coming years. That graph there shows that there's going to be 15 x growth in energy storage installations between 2021 and 2030, up to north of 400 GWh of energy storage installations. It's a huge market, it's a growing market, and it is a market where we've already demonstrated a capability and the ability to win. How are we going to go about targeting these new markets? There are three primary drivers of that that I'm gonna outline on this slide. The first one is existing products. Really this is probably the most important point on this slide and in this section of the presentation. The requirements, as I've talked about already, the requirements of those markets are very similar to our legacy markets. The pumps and the fans that Concentric produce today can be sold into a much wider range of applications with minimal customization required. That is really important because none of us think that we can grow our business for free. There is investment required in order to grow anything. Actually, our expansion into new markets is much more straightforward than you might otherwise think, because you can take the products that we have today and with minimal tweaks and customization, you can sell them to those customers and you can meet their needs. The second point on here is dedicated resources. Clearly, entering into new markets isn't easy, and we recognize that in order to penetrate those markets, we need to have individuals within our business who speak the language of those markets, who can give us a foot in the door and who have relationships with those customers. We are working with dedicated business development personnel who are going out and talking to those customers, introducing the Concentric product capability and explaining what I've just explained to you, which is that we have products available today that are proven in the field, proven in challenging applications that can be used to meet their thermal management requirements. The third point is the wins with customers. It's very easy to stand up here and say something theoretical. You know, we will do this, we will do that. What I'm telling you is we are doing this, and we've already demonstrated that we can win in these markets. Not only that, we also have active development discussions ongoing with customers in a range of different markets today. You know, as we sit in this room, our salespeople, our business development people are out there in these markets talking to these customers, and we will continue to win, and we will continue to benefit from the growth in those markets in the coming years. That's new market growth, and that was the third driver of growth in our profitable growth strategy. The fourth driver of growth is investing in a platform in India. Those of you who follow Concentric will know that we have been in India for nearly 25 years. We have a site in Pune, and it's a full-scale manufacturing facility. We have a number of customers in India. We have revenues in India, and it is an established presence. Clearly, there is significant opportunities as the Indian market continues to grow, as the Indian market continues to electrify and develop for us to grow our business. There are three primary drivers of how we propose to grow in India, and I'm gonna talk you through each of those drivers on the next three slides. The first driver is off-highway, or it will be when it loads. As I said, we've been in India now for the best part of 25 years. The most significant OEMs in the off-highway market, in the Indian market are customers of Concentric, and we have strong relationships with those customers. The construction market and the agriculture market continue to grow. There's a stat there in the bottom left of that slide or the bottom right as you're looking, which says, "The construction market will grow by 10% year on year over the next 5 years." We are perfectly positioned to grow as that market grows. We are also perfectly positioned to grow our market share with our Indian customers, building on our existing footprint as the years progress. The second driver of growth in India is on-highway. Historically, the Indian market on-highway has been very cost-focused. We talked to you today about all of the things that Concentric bring to our customers. We bring solutions, we bring real value, and we work with our customers to deliver innovative technology. The Indian market is evolving, and it is evolving in the direction of a demand for those sorts of characteristics. The guys talked to you before about the changes in legislation in India. Bharat Stage VI, Phase One was launched in 2020. Phase Two will be launched in 2023. What does that mean? It means that Indian OEMs are looking for more efficiency. They are looking for more of the things that Concentric bring to the table because they need to be able to meet the legislation as it evolves in their market. There is suddenly much more demand for what we bring to our customers in that market. Again, don't just take my word for it. We've already won two platforms in India in the last six months, two platforms with two different customers, those platforms are gonna deliver 220 MSEK of revenue over 5 years. That in itself is great, but what it's more important is what it represents. It represents a proof of concept. It represents a foothold for us in the Indian on-highway market, and it's a platform from which we are going to build our on-highway business in the coming years and grow that significantly as time goes on. Again, those discussions are happening right now. You know, we have a team in India who are talking to those customers and looking to win more in the on-highway market as we go forward. The third driver of growth in India, won't surprise anybody, is Electrification. Common theme across our presentation today. Electrification is impacting all of the world's markets. It's impacting all of Concentric's markets to varying degrees, and it's impacting in India. Indian Electrification, many of you will know, is perhaps not happening as quickly as it is happening in North America or in Europe or indeed in China in certain applications, but it is happening. Again, that's that bottom right is testament to that. The Indian government is expected to invest $10 billion in electric buses in the next five years. We are there with our customers, demonstrating to them an existing range of electric products that will enable them to go on that Electrification journey. The story in India is a little bit different because there are threshold requirements that need to be met in terms of localizing supply. Every electric vehicle that our OEMs produce will need to meet a certain criteria and a certain threshold for the amount that's produced locally. We are working with our customers, and we are working with our suppliers to ensure that we can go with them on that journey, that we can demonstrate that we can produce some of these electric products in India, that we can source some of these products or some of our components from Indian suppliers to be able to localize production with our customers and penetrate that market as it grows. Again, it's difficult to overstate the scale of the opportunity here. You know, India is already 3% of our business revenues today, but it's a huge growing market. You know, we all know that there's 1 billion people in India, and we all know that the rate of change is enormous. As that rate of change increases and as those customers in India start to demand more from their technology, they start to demand more reliability, more robustness, and more innovation, we are perfectly positioned to move with those customers and to gain share as those markets grow. That is our fourth strategic move. Just to pause there for a moment. We've talked to you about the four moves that form the base of that pyramid. We've talked to you about growing our base business. We've talked to you about Electrification and accelerating Electrification. I then talked to you about entry and expansion into new markets. Then I talked to you about growing in India. All four of those drivers form part of our organic growth story. Marcus is gonna stand up here in 15 minutes time or so, and he's gonna talk to you about our financial targets for the coming years. Those financial targets include revenue growth targets, which are built on those first four pillars. They are built on the organic growth that we expect to be able to deliver in our business in the coming years. That's not to say that we don't think we can build on top of that further with inorganic growth. That is something that we will be actively looking to do in the coming years. What do acquisitions look like within Concentric? We've been listed since 2011, and during that time, we've done four acquisitions. The first three were, relatively speaking, smaller bolted acquisitions. We bought Licos in Germany in 2013. We then bought GKN Sinter Metals in Argentina in 2015, and then we bought Allied Enterprises in Muncie, Indiana, in North America in 2020. They were all important acquisitions for us. They all expanded our product capability. They all, again, increased the value that we can deliver to our customers. We then delivered a much larger transformational acquisition in October of 2021 in EMP. Again, shouldn't be understated the significance of that acquisition for Concentric. North of SEK 1.2 billion spent on that business, invested in that business, and 400 new employees joining our group, increasing the size of our business by 50% overnight. We are planning to build further on that, and we are continuing to build our acquisitions as time goes on. Let's first look at EMP because it was a very, very important acquisition for Concentric, and the last 12, 15 months or so, we have all spent a lot of time and invested a lot of time into ensuring a successful integration of that business into our group. What does that mean? We've, we've really been looking to ensure that we can help to drive growth in that business in the first instance, so driving revenue through cross-selling. We've got a global sales team made up of both Concentric and EMP people, and we are cross-selling our products across both divisions and across both businesses all around the world. We are looking to improve the performance of EMP, and we are also looking to improve the performance of the Concentric group. How do we do that? We do that through operational excellence, which we've talked through in Brandon's section. We do that through product line consolidation. There was overlap in the product lines of EMP and Concentric. Clearly, we want clarity in what we can deliver to our customers. We don't want duplicate products. So we've been looking to consolidate those product lines together. The third category that we've been looking to do as part of the integration is we've been looking to share knowledge. We've been looking to share expertise. Clearly, any acquisition is not just about growth. There is a strong business case behind the acquisition of EMP. One of the key drivers of that was enhancing our electrical capability. You know, we've been able to add additional hardware engineers, we've been able to add additional software engineers. We've been able to extend and expand and enhance our product line for our customers in the Electrification space, and that has allowed us to, again, to be able to deliver more value to our customers, which is a common theme throughout this presentation. It also allowed us to bring more of that IP in-house and therefore be more responsive to our customers and be able to, again, to just enhance the value that we deliver to them. The point there at the top of this slide is very important. This is a repeatable process that we will be able to roll out across further acquisitions as we do them moving forwards. What has all of that meant for EMP? It's meant that we've been able to successfully onboard 400 people into the Concentric group. It has meant that we've been able to deliver additional growth opportunities for the EMP leadership team to take on more opportunities at a group level. It has meant that we've been able to, again, enhance the IP that we have within the Concentric business. We now have a much broader, much wider engineering team. That means we can deliver value to our customers on a real-time basis. Crucially, it's enabled us to improve the performance of the business. We have significantly increased the revenues in EMP in the last 15 months. Not only that, but we have substantially improved the operating margins of that business since it became part of the Concentric group. That is not a one-off change. That is a sustainable, systematic change that we've been able to deliver through all of those integration steps that I just talked you through. Quarter 1 2023 performance, so the most recent completed quarter, was again, much better than the performance in Quarter 1 2022, so the comparative period 12 months earlier, which is again, testament to the fact that this is an ongoing improvement that we will continue to support and deliver going forward. What we're gonna do about further acquisitions? Key message here, we have a strong desire and a strong appetite to add further acquisitions to support our growth story inorganically. We have dedicated resources who are seeking and executing acquisitions on a daily basis. Even after the acquisition of EMP, we have a very strong balance sheet, and we have further debt capabilities or further debt facilities available with our existing lenders in the market. All of the resources that we need to do deals are in place. Not only that, we have a network of advisors who we work with regularly. We keep them informed of our acquisition strategy, and they search for targets for us. We have actively retained advisors who are actively seeking out targets for Concentric in certain target markets on an ongoing basis. What that has allowed us to do is to produce a list of targets which we assess, we analyze, and we work through to ultimately find more targets to add to the business. How do we assess those targets? Well, we assess them against a range of strategic and financial criteria. The strategic criteria, none of these should surprise anybody. Our acquisition strategy goes hand in hand with our organizational strategy. Electrification is a key driver for our business. Anywhere where we can find a target that will accelerate our capability, enhance our product lines in the Electrification space would be a priority target. We are an innovation business. We are a technology business. We are always going to prioritize acquisitions of targets that deliver market-leading technologies. We are not looking for commodity technologies. These two on the end are the two themes that I've just talked you through. We want to access new markets, we want to enhance our footprint in new markets, and we want to enhance our footprint in geographical markets. If we can find targets that will support us on that journey, then they are a priority for Concentric. The financial criteria, again, very simple. We want quality businesses. Marcus is going to talk to you later about capital investment and how we use our capital wisely. We aren't in the business of buying broken businesses. We want quality acquisition targets who can improve our group performance. We want them to be capable of delivering high margins both today and in the future within our business. We want there to be room for improvement. As we overlay our repeatable integration process, we want that to improve the business, and ultimately, we want it to be able to deliver substantial growth in the coming years for the Concentric Group. Hopefully, that's all clear. There'll be opportunity for questions at the end, but I will hand over to Jennifer Todd-Wilson to talk about sustainability. Thank you, Adam. Your energy is always a hard act to follow. Thank you, everyone. Good afternoon to those who are here in the room. Good morning, good evening, good afternoon to those who are joining us online. My name is Jennifer Todd-Wilson. I am the Vice President of Human Resources and Sustainability. Today, I get to talk to you about how our people will make a difference to us achieving our ESG ambitions. As you've heard today, the themes of ESG and sustainability are important part of our journey towards profitable growth. The graph that I'm showing here, I think, is a really typical graph for a lot of companies. We are building what we call our ESG ecosystem in partnership with our critical stakeholders to meet the demands of our customers and our dynamic industry. We start off with the aim, which means that we're setting our overall plans and objectives right now. This has started with bringing sustainability to the forefront of what we do with a shift in the way that we engage around ESG, particularly with our suppliers, our customers, the acceleration of our Electrification journey, which you've heard a lot about today, and also with the way that we interact with our employees. One of the key pillars that we've started with is safety and our zero harm safety strategy, which is being adopted by every Concentric employee. We're moving now from a sustainability or ESG perspective into the structure and definition. For Concentric, success here looks like further defining our strategy and our risk appetite, conducting a double materiality assessment with our critical stakeholders, assigning clear roles and responsibilities across the organization, and embedding key areas of governance. This will include things like our policy direction and clear boundaries and guidelines for all of our employees. We're also in the process of establishing a sustainability committee. This will help us lead, operationalize, and institutionalize sustainability. It's a forum where we can harness the ideas and talent of our employees, and we can leverage the unique capabilities across the group while still remaining lean in our structure. Finally, in the not-too-distant future, we will get to a point of actually embedding our sustainability activities and activating our strategy. This is going to be a point in time where everyone in the organization knows how they can contribute to ESG, where sustainability is encouraged and measured in various ways through KPIs, through rewards and incentives for our people, through operating targets and budgets at site level, and when ESG is really institutionalized in the daily work of all of our employees. The question then is: how are we actually going to do it? How are we going to operationalize sustainability? Our governance structure will also be, for Concentric, a key lever for cultural change. We have already defined these roles and responsibilities from board level through to the shop floor. Soon, we will have management reporting and information flow up, down, and across the organization on a range of ESG metrics. We've already adopted a similar approach with our zero harm safety strategy, where we are now measuring key KPIs. Across the group, we are sharing best practices, we are analyzing trends around safety, and we're starting to move towards more leading indicators to reduce incidents and injuries among our employees. Through the sustainability committee, our employees can be champions, they can contribute to cross-functional projects and selling initiatives, and we believe it will provide more job satisfaction, as well as building critical knowledge and skills across the organization. This model, as you can see in here, will help us drive significant culture change at all levels across the organization with regards to sustainability. When we look at our overall ambition and what that means for Concentric, our ambition is to prioritize and to embed sustainability in our organization. We consider this will happen in three main buckets: climate and resources, through innovative products and partnerships, and through empowering our people. You've heard today, and you're going to hear more shortly from Marcus, that we are a stable, well-performing business. We want to make the right strategic decisions and continue to make the right strategic decisions for profitable growth while also improving the welfare of the planet. Our customers, our innovative products and partnerships are the backbone of our sustainable impacts that we can create, particularly with our OEM customers. In that space, we're ready to build out this roadmap and build our own identity when it comes to sustainability too. The final point is about empowering our people to deliver the best service to customers, to make a meaningful difference, and to involve them as we build out this sustainability ecosystem. Importantly, on another level, we're also aligning to the UN's Sustainable Development Goals. A number which are worth mentioning today include Goal seven, which is affordable and cleaner energy. You've already heard from Boris earlier about how we're increasing the focus on an investment in technologies which reduce Emissions and will help our customers towards a climate neutral, carbon neutral future. Also notable is Goal eight, decent work and economic growth. We believe in equal pay for equal work, and we believe that by training and upskilling our employees as we invest in our facilities with leading technology, that we'll be a better employer and we'll better be able to deliver our sustainability ambitions as well. We have Goal 13, which is around climate action. We are in the process, whilst we're doing our double materiality assessment, of setting out a roadmap for sustainability, and at the same time, we're creating products that help our customers to reduce their Emissions and environmental impact too. You've also heard this further with our approach to acquisitions and our growth strategy, as Adam just highlighted for us today. We're also looking at other initiatives around partnerships and also equality. Finally, when we look at our roadmap, and we've spoken a bit today about our global presence and how significant that is for Concentric, we are taking a global perspective, but we're maintaining this local presence or local focus too. Our sites are already collaborating together to meet customer demands. You've heard about our centers of excellence, you've heard about our Dual Cone Clutch system, and you've also heard about the integration of our EMP business. Most of our facilities are certified to relevant ISO standards. We're using operational excellence to improve not only safety, but also the efficiency of our facilities, as well as improve KPIs that further enhance sustainability, such as waste, energy, and water usage at our sites. We believe, and we are today, a global company that's making significant and strategic decisions about our future. Our people plans and our operational plans will result in shorter lead times, faster innovations, tapping into local competitive talent pools, and ultimately reducing costs in the markets that we serve. We will remain close to our key customers in our key strategic markets along the way. Finally, this global perspective and local presence also means for Concentric undertaking corporate citizenship activities with local schools, with local community groups, and with charities in the communities where we are present, and a number of our sites are already doing this today. This is broadly our roadmap. I want to finish by saying that our CEO, Martin, started today by thanking our employees, we firmly believe that it's their support, their buy-in on this journey that will ensure that we achieve both our profitable growth culture and our ESG ambitions together. With that, I'll hand over to our CFO, Marcus. Good afternoon again. Right. Welcome to the financial section of our Capital Markets Day presentation. Where shall we start? Strong track record isn't a bad place. Now, for many of you that will have followed Concentric since June 2011, that graph up until 2022 will be a familiar one. It's a level of sales of around about 2 billion SEK, up a little bit on peaks of the market, down a little when we've had 2020 and the effects of the pandemic, but pretty much a business that has delivered a stable level of sales consistently over a decade. 2022 was different. 2022 was the year that we felt the full economic benefit of the acquisition that we did in the fourth quarter of 2021. Whilst we can see that our sales increased year-over-year by 92%, a substantial part of that was EMP, but there was also underlying organic sales growth in that year. It's really, really pleasing to see that during 2022, we were able to rebase our business and our sales at a level over SEK 4 billion. Our operating margin too has done rather well. Again, many of you that will have followed us, that graph will be fairly familiar. We started off at 15% back in 2013. Through a combination of lean manufacturing processes, product management and mixed management, particularly in our hydraulics business, and the stellar performance that we saw with Alfdex over those years, at the peak of the market, we were able to enjoy operating margins beyond 20%. Where are we today? Today, we're trading after the acquisition of EMP at around about 16%, we've seen that over the last four reporting quarters. It should be borne in mind, those four reporting quarters saw unprecedented cost pressure on this business. It's testament to our people and our business model that we were able to move those costs on up the value chain to protect those strong operating margins that this business is well-known for and will continue to enjoy. Even at those levels, we would still argue we have got some of the best-in-class operating margin performance within this industry. We operate in cyclical markets. The customers we sell to operate in truck and bus, construction, agriculture, and industrial applications. All of those end market applications have their own economic cycles, they all experience too the Macroeconomic cycles as well. What does that mean? Well, it means our business has to remain nimble, adept at change management, and particularly cost management. We like to see a strong, consistent return from our gross margins through to our EBITDA. In order to do that, we have to manage our overheads. That graph that you see up there is a decade of effectively overhead management. Little higher in certain places like 2020 when we've got the full effects of a global pandemic. We're encouraging to see then that during 2021 and 2022, we're getting back to levels that we have enjoyed historically. This business knows how to operate in cyclical markets. This business knows how to adept and adapt to changes and cost management. Another way of looking at that is what's been our drop-through, our profit drop-through from additional sales or less sales depending on the cycle. We've got 10 years worth of information on that graph, which pretty much shows that consistently, whether the market is up and we're growing or whether the market's contracting, we will manage our operating profit drop-through to around about 20%. 20% up, 20% down. There are peaks within that, of course, within the cycles. 2018 being the top of the last market, 2020 being the trough caused by the pandemic. What we do see consistently is that management of profit conversion or the management of profit drop out depending on what our end cyclic markets do. It just reinforces again that part. We have a stable business, a stable platform with a management team that knows how to adapt to change in cyclical markets. We've been looking at P&L. Cash. Cash you always know. Cash is king. Again, we have a reputation of spinning off cash. That's what we do within Concentric. Manage type businesses, delivering strong profit to cash conversion. Over the last 10 years, we can see that it's consistently above 100% of profit to cash conversion. Couple of little swings that we have within there in 2020 and 2021. The decline in sales spun some working capital into our business. The rebound in 2021 as the market started to recover pulled working capital back out with a little on top for stock management as we went through that global crisis and the effects that that was having on our supply chain. Encouragingly, by 2022, we're back to that level of delivering operating income to operating cash at a one for one ratio. Whilst we're doing that, we've also been investing in this business. Again, we've got a capital expenditure as a percentage of sales, and you can see that we've got a range over the last 10 years of being 0.5-2%, many of those years is nearer to the 1% average that we see. Now whilst we've had a stable business, that level of capital expenditure has been sufficient to support the business. As we move forward into this next economic cycle that we're talking about today, and we're planning for organic growth, we believe we're probably gonna have to put a little more business in terms of capital expenditure in to meet those growth aspirations that we have. Therefore, we're guiding the capital expenditure over this coming cycle is likely to be in the ranges of 2-4%. We still believe we can deliver strong operating cash off this business and an adjusted operating income to operating ratio of one for one. Shareholders, the very people we're talking to and the very analysts that are listening to what we say to report to potential shareholders. Let's start with an important measure, earnings per share. That's an encouraging graph. That shows a threefold increase over a 10-year period in our earnings per share. We started off at four back in 2013, and we reported a 13.2 in 2022. That's been through a combination of things. Margin management, as we've just seen earlier, growth through inorganic growth and four acquisitions over that period. It's also a combination as well of returning excess cash back to our shareholders, where we deem we haven't got a use for it internally. That program of own share buybacks has been able to drive our earnings per share. It's usually averaged about 150 million SEK on the years where we haven't had sufficient cash, excess cash. We've also should be looking at dividend. Many of you will know, one of our key targets is dividend income and the return of 33% of our net income to our shareholders through an ordinary dividend program. The graph that you see there is effectively a rolling 5 years, which is an economic cycle. The strike line that goes through the middle is the target of 33. We have consistently, over that period, returned in line with our policy, 33% of our net income through our progressive ordinary dividend policy to our shareholders. Total is about SEK 1.1 billion over that period. We've also talked about our ability to generate cash within this business, and we do. Therefore, even with that policy, we've got excess cash. You can see there that we've delivered excess cash back to our shareholders through two main mechanisms over that period. Either special dividends or own share buybacks. They totaled 1.1 billion SEK equal to our ordinary dividend policy of returning that cash back to our shareholders where we hadn't got a use for it internally. 2020 and 2021 were different. We had two acquisitions. Adam talked about it earlier. Allied Enterprises, we completed that on the 31st of December, 2020. All cash transaction. In 2021, we completed the EMP acquisition. Partial cash transaction, mostly debt financed. The total of the cash that we used to finance out of our coffers total 300 million SEK, which was pretty much the average of what the own share buyback programs had been over those preceding years. As we move forward into 2022, we see us deleveraging as we start to meet our banking loan needs, and we start to pay down our debt at around about SEK 130 million a year. Interesting to note, though, at the end of 2022, our leverage, despite completing that acquisition 12 months earlier, was back down at 1.1. Net debt to EBITDA, 1.1, as we deleverage our business. You've heard from Martin, you've heard from Brandon, you've heard from Boris, and you've heard from Adam. We've spent quite some time developing our strategy, and it was time to realign our financial framework to align with that new strategy. We've taken out one financial target, and we've introduced some others to help guide. We've now got a core of financial targets of four that we have that we're measuring on, and two, that we're deeming policy. I'll come onto to why shortly. Where do we start? Growth, always a good place. We've got two measures now, two targets on our business. Our base business is 83% of our business today, and it's established. It has long-standing industry metrics that we supply to, and therefore we deem a guidance of 3% growth over and above those indices, which are cyclical. 3% over and above those indices is a good way for potential investors and analysts to understand what our growth aspirations are. Our electrical business is different. It's emerging, it's new, and market indices aren't yet established with any confidence as to where it is or projected where it's going to be. We've come up with an alternative measure for that. That is 15% compound annual growth rate over 2022 over a cycle. Whilst we want to grow, we want to do it profitably, and we want to maintain the quality of what Concentric is renowned for. Whilst we've had a long-standing target of operating margin being equal or greater to 16%, that's where we want to reiterate our target for this coming cycle. I've talked about potential capital investment, organic growth, needs of the business for some cash. Again, what we want to be able to do is guide on what our cash generation is still likely to be. We believe the cash conversion of our adjusted operating income to operating cash will remain at or above 100%. This business should still be able to generate strong operating cash flows, and more importantly, where we are investing in our business, we will still get strong returns on the capital that we employ. We again have set a target that is equal or greater than 20%, a level that we are just above at the moment. We talked about financial policy. Now, we've got one that is a reiteration of a policy that we've already touched on, which is the dividend payout ratio, and we're reiterating that will remain at 33% of net income. We're introducing another one. We've titled it financial discipline and leverage. Whilst we're talking about wanting to do acquisitions, we fully acknowledge that we operate within cyclical businesses and therefore we want to maintain a strong balance sheet and not over-gear this business. We're setting a policy that we will not exceed net debt to EBITDA of 2.5x during this coming cycle. As I've just said, we're currently operating at 1.1, having completed quite a sizable acquisition with EMP. We certainly have the debt capacity to do more acquisitions as we move forward. Capital allocation priorities. As we've talked about, we set targets that will set growth, profitable growth, good cash generation, strong return on our capital employed. We believe our operating cash conversion will continue to be at 100%. We are gonna continue to invest in this business at a little stronger pace than we've done before to meet those aspirations on growth and needs for capacity around our group. Out of our strong operating cash flows, we'll continue to pay that dividend. What's our priority on excess cash? Well, priority number three, meet our debt obligations as and when they fall due. Two banking colleagues will be pleased to hear that. We will also meet our pension obligations to our employees as and when they fall due. Cash after that's for M&A, that's for inorganic growth. That's for the quality of acquisitions that we want to find and bring into the business to drive growth. We've got a quality business. It gives us cash. It gives us strength and confidence to be able to do that within a sensible framework of financial measures. Where we can't identify those targets, we will return it to our shareholders through the appropriate mechanism at the right time. We are in excellent shape. Financially, we are in excellent shape. We've got a base business that is well renowned within our industry. We've got a nice demand, as we've heard, that is going to continue for many, many years. It will generate strong returns, and it will generate cash. It will help fund the Electrification transformation that we will see in the coming years within Concentric. We will focus and continue to generate strong operating cash flows. We will maintain a strong balance sheet required for business like ours that operates in cyclical environments. That will allow us to give our shareholders, both current and potential, consistent returns on their investment for the future. With that, I wrap up. I will hand back to Martin, who will now do a summary of our Capital Markets Day. Martin. Thank you very much, Marcus. Great foundation to build upon, right? Let's summarize. I think, all presentations really highlighted in detail not only what we're going to do but also how we're going to do it, which is very important for the phase that we're in now, which I alluded to in my introduction. We're now in the execution phase. We look at Concentric, what's the key message? We are well-positioned to deliver growth and robust returns, and we are compelling investment choice. Why is that the case? First, our base business remains important to our group and has growth and margin improvement potential through legislation, innovation, and operational excellence. Second, we will be a winner in Electrification through the value we deliver to our customers, the number of products that are on the vehicles, and increased product revenue. Third, new markets, applications, and geographies will add further opportunities for our profitable growth strategy on top of the base business and the Electrification. They will be supported by strategic acquisitions. Fourth, sustainability, whether focused on products or people, constitutes an integral part of our operations. Our products will support our customers on their journey to zero Emissions. Last but not least, we have historically outperformed our peers. We are positioned to continue to do so. We have a strong cash generation. We invest our capital wisely for our profitable growth strategy. We will continue to deliver strong returns to our shareholders. With that, I'm concluding today's presentation section of the Capital Markets Day 2023. I'm happy to move over to the Q&A session. I'll ask all the presenters to come here. We need to explain a little bit how we are going to take questions. Probably three over there, three over here. We'll start as usual with questions in the room, and then we move over to the audience out there in the virtual space and take their questions. Let's start with whomever in the room has a question now. Mic. Is this working? Oh, thank you. Yes. Viktor Hansen of the Equity Research. Thank you for the presentation here today. Yeah, my question here, on your M&A ambitions. I'm wondering if you had to rank the three various areas, new markets, applications, and geographies in importance, how would you do it? That's an interesting question. I mean, first of all, I would like to say that we stay firm to our principles. That means whatever we acquire has to be a good quality business that we can further develop. At this moment in time, we're not giving any priorities simply because we're looking at everything that comes in that fulfills the criteria. Then we carefully select what we're going to invest our capital in. I don't know, Ed and Marcus, you wanna expand on that? No, I think that's right. I think there are so many criteria that go into making that decision in terms of the quality of the individual target. Does it deliver the right returns? Does it have the right culture? Does it have the right technology? Is it in the right locations? Does it serve the right markets? To try and have a uniform ranking of which order to put those in would kind of be unfair to an individual target. Each target is assessed on its own merits. Again, with a balanced view across those criteria, so that's probably where it's at. Maybe I'll follow up. Are there any particular geographies that are extra interesting with the legislations or other drivers? Yeah, I mean, geographies, talking a bit about what we also have responded to that question previously. When you look at our annual report with the acquisition of EMP, 2/3 of our business last year have been in the U.S., and we have a certain desire in balancing that geographically a little bit again back to Europe and other regions. That is one of the priorities, but again, first priority will always be the quality of the business. Yeah. Yeah. Thank you. Thank you. My first question is on the increased share of wallet for e-products and for electric vehicles. If we extrapolate the 50 times value for electric vehicles compared to diesel engines, that would be a huge sales number, of course. Maybe if you could give us some clarification on the average share of wallet increase and also relate it to the e-product share of revenue, how large part of those 30% in 2028, for example, could be to electric vehicles? Yeah. Thank you very much. It's a good question. However, as Marcus has said, we are in an immature market, so at this moment in time, we don't feel comfortable to give an estimation on that. Simply, we have to see. As Electrification is evolving, we have to get more experience on basically when and how our products get on the vehicles before we can make a better assessment on that. Absolutely. The bit we're trying to guide is the 15% CAGR. That's where we're trying to give that steer as to what we're going to be delivering over that period. We don't think it's gonna be linear. We've said that before. It will be an exponential growth that we'll get over that period. That's the only way we can really guide the market. It, it's very difficult to argue out of a EUR 8,000 share of wallet on a truck that's still, you know, potentially in development, what you're likely to win. Is it the pumps? Is it the fans? Is it the EHS? Very, very difficult to guide. We've tried to come up with a split target on growth between base and electric that can help you model what that will be for our business over the coming years. Could you, like, explain, if there is, for example, any specific customer that could contribute to a higher share of wallet, or what are the main factors for driving that? I mean, we're targeting a broad customer base. When we look at the legacy EMP Electric business is spread over many customers. At this moment in time, there isn't one single customer that basically stands out here. It's also good from our risk management point of view that we have this business distributed over a broad customer base. Again, we're talking to some customers about fan systems, we're talking to some customers about steering, we're talking to some customers about pump applications. It's different by each, which is why it's so difficult to give a guiding average as to what we're expecting to get. Again, the price points on each of those ranges of products can be different too. Again, very difficult, Julia, to guide on that. Do you see any clear changes in both the competitive landscape and the customer landscape when it comes to electric vehicles? For example, a more fragmented market for the e-bus producers, for example. I mean, what we're seeing, it depends on whether we look at customers or whether we look at competitors. We had that question before. Competitors, there isn't a lot of change in the market dynamics. What we're seeing on the customer side, yes, there is a higher fragmentation simply because there are the existing players in the market, there are also newcomers in the market. On the customer side, we're talking actually to a more fragmented market to what we had in the past, basically, with our previous mechanical OEM customers. We've seen that. We've talked about this previously. We're seeing some of our current competitors that are supplying mechanical products are adapting and changing and offering electric. We're also seeing new entrants coming into that market but haven't had a track record within the commercial vehicle industry. What we don't yet know is whether they'll survive. Those new entrants will develop a product that will be sustainable, that will deliver the performance that's required in that particular niche environment. Again, it's changing a little, but it's not revolutionizing. Great. Thank you. One last question on the sales growth. Could you say anything about the JV, joint venture, Alfdex development, since it's also impacting the share of revenue from e-products, I think, since it's just. I think Mark is more than happy to take that question. Yeah. It's a difficult one. We're as you know, it's a joint venture between us and Alfa Laval. Alfa Laval is listed as well. Therefore, anything we say about Alfdex has got to be guided and balanced by another listed business. All we really can say is it's performing well, and we believe it's gonna continue to perform well. That press release that we put out probably four or five months ago about the contract that they'd won out to 2035 on an e-separator, I think is testament as to how well that business is performing at the moment. I can't be drawn more on it simply because we have an equal partner who's listed, too. Great. Thank you. I think Mats is next. Y eah. Hi. Mats Liss. A pleasure. A couple of questions and maybe a follow-up first to Julia's question there. About the share of, well, the content per vehicle that you mentioned could increase to EUR 8,000. Is it sort of volume dependent to some extent, or is it sort of when the operational volumes are picking up, you see that opportunity or could you say something about that? The opportunity will be twofold. It'll be the content we win, and it'll just be the sheer change of speed within the marketplace. That, that's going to be the thing that ultimately pulls it through. We've tried to elaborate on that, and we've seen a strong bus growth. We're seeing medium duty growth that we've seen, and we've got 17% of our product out on some of these vehicles at the moment. Heavy duty trucks, a little more difficult to guide and give estimates on, but we know it's coming. You know, there are plenty of OEMs out there giving guidance as to what level of their product range is gonna come from electric vehicles. How quickly we get there is the unknown. The bit we're trying to just drive towards is the products we sell are the products they need to meet those zero Emissions. The very customers that we serve today with mechanical are the ones that are transitioning over. We're well-placed to meet them and help them on their journey. What that speed of transition is going to be is the $1 million question. That volume will pull through our revenue growth. The sort of EUR 8,000 there, is it calculated on the prototype orders that you have received now, or is it more of a when things are moving into an industrial phase? It's definitely based on later industrial manufacturing volumes. Just one remark here that Boris has highlighted that very well. The SEK 8,000, let's stick with that number for a moment, is for a battery electric vehicle. When you take, for example, the business we won recently with hydrogen Fuel Cell, the content might be even higher. It really varies on the technology. I think the SEK 8,000 is a good ballpark to give us guidance here on what the maximum share of wallet might be. Great. About sort of the target timeframe there. I mean, you have a 5-year outlook, should we see these targets as more back-end loaded or are they happening in a straight arrow up until 2028? We can probably say a little more consistency in terms of our mechanical business, given its longevity, but it's nonlinear with our Electrification business. It will depend on how quickly those markets do change and adjust and convert to EV vehicles. That's the difficulty. We think it'll be nonlinear in terms of growth over that five-year period. Finally, just to I mean, it's a sort of a special situation with EMP and the changeover to electric powertrains. Should we see that as a special situation now? I mean, There is a cyclical market underlying, but these Electrification opportunities, could you sort of see them as balance the cyclical well, move of the market as well, that you get sort of earnings from these prototype orders, et cetera, that helps you sort of move through a downturn? Could be, Mats, but that's a difficult one to call. Again, it'll just be down to speed and timing of what happens on either underlying business and when any potential downturn would happen at the very point of what's happening on EV and pulling through. Maybe, but very difficult to give a conclusive answer on. Yeah. Thank you. It's still testament also to the immaturity of the market. We will see over time, we will learn over time, whether there is an additional potential in a downturn from electric products, but it's too early to tell. I think Bjorn was next. ng price per unit today is close to 8,000 It's depending. Again, the 8,000 SEK is the full share of wallet. I mean, it's the total, yeah. We have customers where we supply everything. We have customers where we just supply the pumps. We have customers where we just supply the fans. We have customers where we supply the entire cooling system. It really depends. It's difficult to make an, let me say, to quantify where we are with our current customer base. It's also, I guess, difficult to talk about units, but, I mean, the number of ICE units versus EV units, is that something that you can talk about? It's in line with the public, numbers out there. Yeah. Okay. Yeah. On profitability, I guess on gross margins, I would assume that R&D going into EV is much, much higher than price in proportion to sales. EBIT, it must be quite diluted to EBIT margins right now. Is there any reasons why gross margins or EBIT margins in the long term will be higher or lower than on equivalence solution for the ICE business? We're expecting, like, the margins, our margins, our gross margins that we're getting on those two pieces of business, as we've touched on in the past, are broadly similar. There's a little bit more R&D that's going into those products. There's no reason for us to believe, as volumes ramp through on the electric business, that our margins that we enjoy on the electric should be anything wholly different than what we're enjoying today on the mechanical. Today, I would assume they are diluted. A little. A little bit. Not much. Yeah. Okay. Yeah, I think that's it. Yes. On market shares in general, can you already today see? I mean, you have been talking about EV transition for many, many years, and you have been announcing orders for many years as well. Can you measure market shares in the different segments? Not the number, but, I mean, is this a good transition for you versus competition? We think it's a good transition. That's the essence of our presentation. We've got a long-standing reputation in the commercial vehicle market, we've got a long-standing reputation for being able to develop high quality e-products, both within Concentric-branded products and within EMP-branded products. We believe we're well-positioned to do that transition. Market share, as always, as we've talked for the 6 years, is always a very difficult thing. We're not an OEM, we're not measuring the number of units in trucks. We're measuring the number of pumps that might be going and finding the end application. Always a very difficult one. Our essence of our presentation today is we really do feel we're well-positioned to enjoy that growth that will come through Electrification. Thank you. Yes. Yeah. Thanks, Bjorn. More questions in the room. Julia. Thank you. Julia Utbult with SEB again. I want to come back to the question of share of wallet again, because I understand that the share of wallet depends on the customer because some customers orders just components and some orders a full system. Is there anything behind that that could explain why a customer would order a full system? Is there any difference between those customers? Yes. Yes. We can't, let me say, respond to that to perfection. For example, when you look at big customers, they also have their supply chain risk management. There are reasons why larger customers and larger volume want to distribute that over several customers, or several suppliers, sorry. There is a naturally, let me call it in good English, not everybody wants to put all the eggs in one basket. Okay. That's one thing we see. It's difficult to quantify. On the other side, we are seeing also that the smaller the customers are, the more likelihood we have to get more products on it because they do not only see us as a manufacturing partner, they also see us as a design partner because they don't have these big engineering departments as we know them from basically the established customers. These are the takeaways we can give you so far, but too early to quantify. Does that help? Yes, it helps a little. I guess the conclusion is then that the smaller customer is better for your share of wallet, at same time it will be larger revenue from the larger customers. Correct. I think that's a good conclusion. All right. Over to the EBIT margin. Could you say something about the difference between margin on e-products and the base products? Just touched on it with Björn. As we've said in the past, the gross margins are totally different. The only thing we've got that's slightly different is probably a little bit more R&D investment in there, but they are not wholly different between those two. We've touched on this many times in the various quarterly reviews and conversations. We're not seeing any great differential at the moment, and we are not expecting there to be a great differential between those two businesses as we move forward. That's why we're still guiding that as we get those growth rates more on the electric product, we still believe we're gonna maintain our margins at that target 16% or above percentage and not guiding for it to be weaker. Super. Okay. Looks as if we're good in the room. Any further questions here in Stockholm before we move on to our virtual audience? Do we need to inform how to take questions or is that clear, Craig? Yeah. We don't have questions on the phone. Most people are on the webcast. On the webcast. Okay. we've got one question from the webcast. Okay. It's from John Hildner, and he's from Enter Fonder. The question is, your market share in EV, Eelectric Vehicles, looks to be much bigger than on ICE. Given your relatively large share of sales into EV today, is that a correct assumption? I would say not necessarily. I mean, we can't say yes, or we can't say no. We need to put things in context, no? I mean, when we look at just heavy-duty trucks last year, there were 1,000 heavy-duty trucks sold in the world, or was it 2,000? And you know, about that. Then we have, let me say, a much larger number on ICE trucks. It's far too early to speak about market shares in that context. The other point why it doesn't make that much sense yet is because the sheer number of products that can go on it, what are you measuring? Are you measuring everything you could sell? Are you measuring just the pumps or another product? It's a difficult question to answer at this moment in time. Nothing further to add to that. Yep. No further questions. No further questions from the webcast. Let's check one more time. That might also mean that, we have provided good clarity in the presentation, which we all hoped. If there are no further questions, we're more than happy to conclude our 2023 Concentric Capital Markets Day. I would like to thank several people that are here. First of all, let's start with our audio and video team who has supported us during that event very nicely. Thank you very much. I would also like to thank our presenters today, members of our leadership team, who have walked us through the individual pillars of the strategy. There were many other people out there in Concentric and outside, just mentioning whether it's Paul, Fernando, Riccardo, other members of their teams who have contributed, our external partners in terms of communication, advice, presentation technologies. Don't forget the nice videos, which will also be very soon available in public. Thanks to all of those, and I'm for sure falling short in naming people who have supported us. Thanks to all of those for this Capital Market Day presentation. We hope that this day has brought Concentric closer to you, that you have more details, not only about what our financial targets are for the next period, but also how we are going to achieve those financial targets. Obviously, you have also met some of the team who ultimately will be in charge of making it happen, which means the execution. On behalf of the Concentric team, thank you very much for being here. Thanks for attending. Thanks for the interest, the good questions, and hope to see you soon again, most likely in one of our quarterly earnings calls. Thank you very much.