Good afternoon, and a warm welcome to our Capital Markets Day for 2021. With me today I have our CEO, Jean-Luc Désir, and our CFO, Lottie Saks, and our EVP Operations will also be joining us later through Teams. The agenda today is that Jean-Luc will present an introduction to Haldex, and thereafter describe our exciting new strategic vision before handing over to Lottie for our financial overview. Next, Nicola will be presenting our sustainability initiatives. We will also be opening up for a question and answer session. For those here in Stockholm, you can answer it directly in the room, but to those joining online, we ask you to submit your questions through the online forum. With those words, I hand over to Jean-Luc. Thank you, Jenny. Good afternoon, everybody, and a warm welcome from Stockholm with the sunny weather. My name is Jean-Luc Désir. I've been the CEO of Haldex since mid of June. Maybe two words about me. Prior to Haldex, I was working for Tenneco, you know, the best car tier one suppliers, from 2016 to 2021. Before that, I was working for WABCO, one of the competitors of Haldex, and prior to that, I worked for Peugeot Citroën, the French OE. I'm really excited to be here and to talk to you about Haldex. I will have a first focus on what Haldex is today and what kind of markets we are operating in, and then I will go into the updated vision and strategy for 2025. Let me start with a couple of key facts and figures. Two thousand employees all over the world. Revenues, 4.4 billion SEK in 2021. Market cap of 2.6 billion SEK. If you want to have those three key figures for Haldex. We serve three different types of market: truck, trailers, and aftermarket. It's fifty percent aftermarket. Very important figure for us, 50% aftermarket. In terms of product lines, two categories of products: air controls and foundation brakes. Let's say 50-50 between those two. In terms of regional coverage, we serve you know all the continents, and Americas being fifty percent of our sales. Europe, EMEA, 35%, and Asia around 15%. Okay? What about the structure of the market? We make braking parts and braking systems. Those parts are delivered to the OEs, original equipment manufacturers. Those truck and trailers which have been built, they go and they are delivered to fleets to first owners. It goes from a first owner to a second owners. To distribute those parts, what's happening? First, the parts go to the OEs directly at the assembly plant for the parts to be mounted on the truck and the trailers. The replacement parts are delivered to the first owner, and then to second owner. Two channels for that. Two channels for the aftermarket. One is called the OES, so that's basically the channel of the original equipment manufacturers. They take care of the maintenance of their trucks and the trailers, so that's one channel. The other channel is the independent aftermarket channel. Deliveries to the OEs, deliveries to the OES, deliveries to the independent aftermarket. That the three channels which exist on this market, and Haldex supplies through those three channels. Okay, let me have a word now about the evolution of the OE market, original equipment manufacturers. Here we're talking about the new trucks and the new trailers. The number of trucks is supposed to grow in the coming years with a pace of 3% per year. What you can see as well is the importance of China. China and Asia, particularly in China, with more than 50% of the markets. On the trailer side, the growth is supposed to be 4% year-over-year, yeah, you know that we need more trailers than trucks. This is why, by the way, the size of the number of trailers is much higher than the number of trucks. Important item as well on this graph is the relative volatility of those markets. It's linked to the economy, to the cycles of the economy, so it goes up and down. This is why it is very important for us to stick to a 50% split between the OE market and the aftermarket. Let me come back to the structure of the aftermarket. I talked before about the first set of owners, then the second set of owners, and to serve those different customers, two channels, the OES and the independent aftermarket. For us, as you can see, we have roughly 60% through the independent aftermarket and roughly 40% through the OES. What is important for the customers? What is important for them is to make sure that they can guarantee the uptime, that they can lower their total cost of ownership. Quality of the parts, availability of the parts, and speed of delivery are of essence in this market. Products. I talked about two categories of products we have. The air controls products, so they are in amber on this illustration, and the foundation brake in blue. Foundation brake, that's really the hardcore of the braking with the drum brake and the air disc brake. The air control, like the definition, is to control the brake. It's like the ABS, the EBS, and the air suspension. Two categories, on the truck and on the trailer. Some of those product lines can be found, by the way, on the truck, on the trailers, like the actuators or the ADB brakes, for example. Okay. After we talked about the products, let's talk a bit about the regions and the dynamic of those regions. Our customers are all over the world, Asia, EMEA, Americas. We do have sales team and sales offices close to our customers, so all over the world. To support those sales, we have a manufacturing footprint which is global as well. We do have production facilities in China, in Europe, in Hungary, and in Sweden, and in the Americas, in Canada and in Monterrey, Mexico. What I would like to highlight here as well is the importance of the JVs. We have one JV in India with our partner, Anand, and two JVs in China with VIE and with FAST Group. Usually, traditionally, you know, the technology innovation would first start in Europe, then it would go to the Americas, and then it would go to Asia. That's more or less what has been the traditional scheme over the last, let's say, 20, 30 years. This, what we've seen lately, it is changing. It is changing with the electrification. To justify that, let me take one very specific example, which is brake-by-wire. You know, I will talk about EMB later on. Brake by wire, you know what it is, and it's the control of the braking not by air, but with basically wire. This requires a change in terms of legislation. China is ahead of the pack on that, and it's already possible today from a homologation point of view to have a truck or a trailer with a brake-by-wire, and they are at the forefront. Europe and America will follow, and as we speak, we're working with the European authorities to change the legislation. Those markets are quite different. The Americas, the importance of the fleets, the fleets like the Walmart, the UPS, and are extremely powerful, and they actually specify what they want to see on the trailers and on the trucks. The OEs really customize their production to meet the fleets. What is really important for a supplier like us is not to be only in contact with the trailer manufacturer or the truck manufacturer, but to be actually in contact with the fleets themselves, because the fleets can specify the Haldex brakes on the trucks and trailers. That's very specific to the Americas. That's our number one region in terms of sales. Again, more than 50% of our sales take place in the Americas. Second region in terms of important for us, EMEA, with 35% of our sales, roughly. EMEA, technology, innovation. ADB brake, this new technology of braking, has been there for quite a while already. It's still drum brake in the Americas today. New technology, new regulations, so that's a characteristic of this market. Last but not least, Asia. The largest market in the world in terms of number of truck and trailers, and for us it's around 10% of our sales. So far it has been, you know, a little bit following the Americas and Europe in terms of technology. On those markets, we do compete with the two big guys. I will name them, so Knorr-Bremse and WABCO, which is now part of the ZF Group. On the product lines that we have, we are number one and number two, you know, in the different regions. I would like to highlight here two product lines particular. The automatic brake adjusters. You know, we're very proud inside Haldex of this product line because we were the first one to innovate and to be at the forefront, and it's still a very important product line for us in terms of revenue and profit. The other one is the air suspension as well. Traditional products which have been there for a while and which are going to be there again for a while. Now, okay, that's a couple of facts and figures about Haldex, about the markets. Where we want to go? What is the future? Before, you know, revealing what this future is and what this updated vision is, let me describe a bit the process that, you know, as a new CEO I've gone through over the last, you know, three or four months. First is to make sure that we understand, and I understand, the DNA of the company. What is very, you know, reason for this organization to be? Here it's clear. It's innovation. Haldex has been around for more than 130 years. Over this period, more than 2,000 patents have been filed. That's really at the heart of, you know, the, this company. Let me take two examples. I talked about automatic brake adjusters. It's from the late sixties, you know, that we had the first patent on that. And still today it's something which is important in our revenues. Another, you know, patent I would like to highlight is a scalable brake system. We've been at the forefront on this type of patent, and it's to prepare the autonomous driving trend that is coming. Innovation really is something which is, you know, embedded into the culture of Haldex. Beyond that, some activities have been done over the last years to adapt the company to a changing world. First, and Lottie will present that in a couple of slides with the impact on the financial results, is a focus on the fixed cost structure. Drastic measures have been taken over the last years to adapt the fixed cost structure of Haldex with, in particular, the transfer of some production from Western Europe to Hungary and Europe and from U.S. to Mexico, Monterrey. The group has been extremely fast and aggressive in adapting its cost structure. At the same time, with my coming to the group, I've decided to focus on two particular item at the group management of the company. One is by the creation of a sales position. Haldex has a great opportunity to outperform the market, and I'd like us to focus really on that with a renewed focus, and by creating this function, I would like to achieve that. The second is purchasing. I mentioned that Haldex has done its homework in terms of fixed cost structure revamping. Now, the focus is really on the supplier side. Today, you know, when we take a plant like Szentgotthárd in Hungary or Monterrey in Mexico, in Hungary, you would see that the top suppliers are in France, in Germany. Does it really make sense? Would it not make sense to have suppliers which are close to those plants? That's what we want to focus upon, and this is why I decided to have a purchasing manager or leader directly reporting to me. DNA of innovation, adaptation of the fixed cost of the company, adaptation of the structure of the company, adaptation as well to make sure we stick to the dynamic of the business, and we have one Haldex way of doing, and this is through the matrix organization. The business is by essence, a regional business. When we take the top five customers in Americas, the top five customers in Europe, and the top five customers in China, they are completely disconnected. The business is extremely regionally driven. To stick to the business, we need to have teams who are regional, who can feel, understand, and stick to the dynamic of the market. This is why the P&L is driven by the regions. Once we have said that, the way of doing, the way of acting, the way we do operations inside Haldex, we want it to be the same across the regions. This is why we have global functions crossing the regions to make sure that the way we operate inside Haldex is the Haldex way. By doing that as well, we ensure some type of cross-functional work between the global functions and the regions. This has been implemented over the last months. Okay, the DNA of Haldex, adaptation of Haldex, new organization. To tackle what question? To answer this question, we need to be aware of the mega trends of the market. What is happening out there before talking about the answer we're gonna give? What are those big trends? I would like to highlight here three big trends. The first one is sustainability and electrification. Everybody hears on a daily basis about global warming and those type of questions. As a consequence for our industry is the move, the aggressive move towards electrification to reduce the CO2 emission. That's one big trend. The second big trend I would like to highlight here is digitalization. What do I mean by digitalization? It's this trend we see that everything is connected at all times to the cloud, and when everything is connected to the cloud at all times, then we are much smarter in the way we can use those devices. We can, and by that, reducing the cost of usage. Okay, so that's the second trend, which is digitalization. The third trend is autonomous driving. In a couple of years, probably we will not need drivers for cars or for trucks. We are very much aware of those trends, which are extremely disruptive. What do we need to be to catch those opportunities? I would like to highlight here three characteristics that we judge to be absolutely necessary to be able to adapt. The first one is this ability to build partnerships. In a more and more complex world where, you know, you can You need to mix different type of skill sets to provide the best solution to the customers. The ability to find the right partners and to build partnerships is of essence. The second is speed, agility. It's good to have ideas, but the ability to come to the markets and to develop the ideas fast is of essence as well. Third, digitalization. Interestingly enough, digitalization is not just about tools, it's about people. Just an interview from Jean-Dominique Senard. You know Mr. Senard, he's the president of the Renault-Nissan Alliance group. He gave an interview ten days ago, very interesting interview. He said, today in his workforce, he has 80% of his people dedicated to software, let's say digital things and so on. He said, "I actually need 30% of my workforce being able to be involved in software and all these type of things." When we talk about digitalization, to be honest, it's of course the question of tools and this type of thing, but it's also the question of skills. To be able to build partnerships, to be able to be fast, and to be able to speak the language of digitalization, that's what we see as important to have a successful strategy. When we understand the DNA of Haldex, when we understand the mega trends which are there on the market, when we understand the type of characteristics, then to define the vision for Haldex, it's pretty simple, and I'm proud and pleased to present this vision to you now. It's one sentence, driving innovation for a safer and greener world. That's our vision, driving innovation for a safer and greener world. Driving innovation because that's the DNA of Haldex. That's what we've been doing for the last 130 years, and this is what we're going to continue to do maybe for 200 years. Who knows? Okay, driving innovation. Safer, it's been there for Haldex all along. Automatic brake adjusters, scalable brake systems. Safer's been there. Then the word we add is greener. Greener. Greener because we absolutely recognize the strength of the market, and we want to be able to answer that. Driving innovation for a safer and greener world, and again, to achieve that will be done with our ability to build the relevant partnerships. Those words which are interesting. Now, I would like to illustrate those words with two products. Let me present first the fourth generation of EBS with this 30-second video. The electronic braking system, so that's the brain of the trailer which basically control the trailer. This very products I've just shown you, it's been introduced to the markets two weeks ago at the Solutrans, you know, the show in France a couple of weeks ago. Of course, it control the braking of the trailer, so nothing new here. What I would like to highlight here is something a bit different with the EBS Gen4, is that it's a brain. It's the only ECU of the trailer, and as such, it's connected to all sensors of the trailers. It can collect all type of data coming from the trailer, and it's the perfect gateway to go and to be connected to the cloud and to think about digital services of tomorrow. Okay, let me give a very specific example. The EB+ controls the brake of the trailer, so it can stop or, you know, it can block or unblock the trailer. It's connected to the cloud, so from a distance, an operator could decide to block or unblock a trailer. You can think about different usages of that. For example, you know, to make sure that the trailer is connected to the right truck, there could be an online checking that the vehicle identification number of the truck is the right one connected to the trailer. we could, you know, from the cloud to say, "Okay, the VIN of the two are okay, so we can unblock." By doing that, you can see that we can improve, you know, the total cost of ownership by avoiding mistake. In terms of safety, by that you can think that, okay, when we're at docking station, if we can control from distance, we can have some safety rules coming from the building of the docking station and the trailer to make sure that all conditions are met for the trailer to be able to move. Here, the open field is absolutely big, and we're talking to new players to see how this hardware and this piece of hardware could be used and could be really at the heart of the creation of new digital services. That's one example. The other one I would like to take now is EMB, electromechanical braking. Okay, let me maybe start with how braking works today in the commercial vehicle industry. It's done through via air. How does it work? You have a compressor, okay, on a truck or on a bus, so from a mechanical energy, we create compressed air at 10, 12 bar, something like that. Then the compressed air is brought up to the wheel end, and then the compressed air is transferred again into a mechanical effort to brake the wheel. Okay? We go from mechanical energy to compressed air, and then from compressed air to a mechanical effort. Okay? Actually, it's a disaster. I mean, if I'm a little bit brutal, it's a disaster. Why? Because from an energy efficiency point of view, to go from a mechanical energy to compressed air, this is poor. By essence, this is poor in terms of energy efficiency. We do it twice, from mechanical to air and from air to mechanical. You know, poor multiplied by poor is poor. Okay? In terms of energy efficiency, it's poor. That's point number one. Point number two, in terms of time of reaction, you understand that when we brake, the signal goes through air, but air is a compressible device, so it takes a little bit of time. In terms of reaction time, it's not that great. The third issue is to have compressed air, you need a compressor, you need an air dryer, you need different devices to manage the compressed air. Presented like that, the solution is obvious. It's just, okay, let's get rid of air. We don't want air, and this is exactly what electromechanical braking is. What are we talking about here? What you see here is, by the way, actual pictures of the prototypes we have. It's basically very simple. We get rid of air, and we put an electric motor directly at the wheel end. Basically, you have an ECU which, you know, receive a signal from the pedal inside the cabin, and then it sends a signal to the electric motors which is attached to the braking, right? By doing that, you understand the principle, but what does it mean now in terms of value proposition for the customers? Let me start with that, with this video. It's real case, was... Those videos were taken, you know, up north in Sweden on a field track. I'm gonna show the first video which is, you know, with the traditional air system on the truck. What I would like you to focus upon is the stability of the truck. The truck is going to accelerate, and then it's gonna go around some corners, and please look at how it deviates so that you can have a reference. The truck starts accelerating, okay? Then you see it starts sliding left and right. Okay? You see the type of angles. Okay? You have that in mind? It's in your brain? Okay. Now, what I'm going to show you is EMB. We start exactly the same conditions, the same track, with the same speed. With EMB, you see the truck with the same speed, and what you can see is that it's much straighter, right? Why? It's linked exactly to what I said. When you have the electric motors which is directly attached to the braking, when the ECUs of the ABS or the EBS makes a calculation to say, "Okay, I need to brake the front right a little bit more than the rear left," then it's instant. You don't need to go through air for the ABS to send a signal through compressed air and then to act at the end, at the wheel end. Here you have the ABS sending an electric signal to the electric motor, and instantly you have the effort. You see it's visual. It's a disruption in terms of safety. The braking distance is shorter, and the stability is better. First disruption on the safety. Second, energy. Okay, I talked about this v multiplied by v equal v to the square, okay? People understand that without air and with having these electric motors directly, you know, at the wheel ends, we save energy. The figures I'm going to share now do not come from Haldex. They come from a European OE which made tests and measurements with our products, and by the way, that's the truck that you saw in the video. When you take a medium-duty truck, electric medium-duty, right? Okay, you know that Volvo, for example, they say that more than 30% of what they're gonna sell in 2030 in this segment will be fully electric, okay? On a full electric medium-duty truck, 6% of the battery package, 6%, would be used for braking. Because braking, you know, it requires energy, and six percent of the total battery package would be used for braking. With electromechanical braking, you save 90% because you're very, very energy efficient in doing the braking. You understand that if you have 90% less energy, but then you can save 90% of the 6%, right? You can use the battery to do a better, you know, range for the truck or reduce the size of the battery. Of course, energy has a cost. This 90% reduction gives an impact in terms of TCO, and that's the third promise of EMB. Number one, safety. Number two, energy reduction. Number three is TCO, total cost of ownership reduction. This total cost of ownership reduction comes from two areas. The first one is energy reduction. 90% less energy, this OE which made the estimate that it can be up to EUR 700 per year of saving in the application of city. Let's be clear, it's not on long haul, but for city application, for buses, it can be up to EUR 700 per year of saving coming from electromechanical braking. Again, figures not coming from Haldex, coming from a customer. In terms of TCO reduction, there is energy, but not only. You saw on the image before, the EMB is simple. We don't need compressor. We don't need line with compressed air. It's boom, the electric motor is directly put at the wheel end. The number of parts which are necessary to ensure the function of braking is significantly less, 50% in terms of reduction. If there are less parts, less risk of breakage, less maintenance and so on. That's what is a contributor to a TCO reduction. EMB, let's make no mistake. I mean, do we foresee any sales in the next two or three years? No, absolutely not, because it's a new technology and the earliest SOP probably is around 2026. The reason we highlight this product line is because it's a hot topic with some of our potential customers, and it's a perfect illustration of who we want Haldex to be. Driving innovation, this is a new standard of braking we're talking about. Let's make no mistake, in 10 or 15 years, we'll say, "Okay, braking in the commercial vehicle, it's electromechanical braking." It's like in a couple of years they'll say, "Okay, a car is an electric car, it's not a diesel car." It's exactly the same for braking. It's exactly the same thing. The point there is of course it's electromechanical braking. We are at the forefront of innovation, and it's for safer and greener solution. Today, with the type of parts we deliver on the trailer side, we're already a system suppliers. With EBS, you know, we own the brain of the trailer, so we're already a system suppliers and we intend to remain a system suppliers moving forward. On the truck side today, we are a part suppliers. We deliver actuators, we deliver disc brake, drum brake. You understand that with EMB we have the ambition to become a system suppliers, because on EMB it's of course the braking, the electric motors, the ECUs, and the ultracapacitors for the energy. We want to manage the complete system, and we are seen by our customers as a potential system suppliers. On EMB, just to finish on that one OE will showcase next year a medium duty truck, fully electric, showing all disruptive technology that they want to promote. They have decided to select our EMB as one of the technology they will showcase next year. Just to say that there's real interest from potential customers. Okay. I talked about the vision of the company, driving innovation for a safer and greener world. I talked about the exciting new products we have. This is new products for revenues moving forward. Let's say it's my right leg, but to be able to walk, I need two legs, right? Okay. The second leg, my left leg, is the current products. Yeah, it's coming back. Okay. My left leg is the current products, and we need to take care of the two legs at the same time. What I would like to describe now is, for each of those legs, what are we going to do on the top line, so to grow the sales, and what are we going to do on the cost side so that those two legs are efficient? If we walk with those two legs well, then it's gonna yield, you know, a profitable growth for the company. On the top line, my left leg, so the current business, what specifically we want to do. On the OE side, we want to take advantage of the transition from the drum brake to the disc brake, so in the Americas, in China. Yes, we have very good products, light, probably the benchmark on the market in terms of weight. We want to capture our fair share of market, you know, in those regions. That's on the OE side. At the same time, we need to grow the aftermarket at the same pace because we want to stick to this magical 50% aftermarket OE, because it's very good in terms of profitability mix, risk mitigation. To grow the aftermarket, we want to leverage the good brand name we have, the good intimacy we have between our sales team and the distributors to expand the offerings, so to expand the products we sell, and also to expand the geographical coverage. Growth on the OE side, growth on the aftermarket. That's what we want to do for the left leg. On the right leg, EBS, EMB. Okay. We're talking to customers relentlessly. What I'm gonna say, it's not a joke. Yesterday I was in conversation with a CEO of a startup making electric truck, and they're extremely interested in EMB because their vision, you know, this CEO in particular, is no fluid on his trucks. No fluid, because fluid is not electric. He has this vision of 100% solid electric trucks, and EMB is perfectly aligned with that. We're talking to them. We'll see if we can find partnerships. We'll see. Top line, left leg, right leg, and sustainability. All the products we develop need to have a better CO2 footprint for our customers. EBS in the video you saw it, 2 kilograms less. Every kilogram of weight which is saved, it's CO2 emissions gains. Okay? We have that. EMB, 90% reduction in terms of energy usage. Okay? Weights and making sure that we have that on our mind on the products we develop to help our customers directly and indirectly. On the cost side, left leg current products. We've done our homework in terms of fixed cost. As I briefly mentioned before, the focus now is probably on the supply chain. To have suppliers closer to our facilities, that's gonna be a key focus. On the right leg it's gonna be partnerships. Brake-by-wire, for example, as I mentioned before, probably to have partnership synergies with people developing this type of technology in the passenger car could make sense. That of course will help us lower the entry ticket of this technology. Sustainability, we want to talk about sustainability on this question, of course. We have a short-term objective to be Scope 1 and Scope 2 neutral by 2025. What does it mean, Scope 1 and Scope 2? Scope 1 and Scope 2 is the level of emissions we have in our internal activities. Today, to be honest, we're already CO₂ neutral in one of our sites in Sweden, in Enskede. This is something which has been on the agenda of Haldex for quite a while, and which has already given results today. We have this objective of CO₂ neutral, Scope 1 and 2, 2025. You know, many companies talk about 2030. No, for Scope 1 and 2, we talk about 2025. At the same time, we recognize that Scope 1 and 2 is probably not enough, so we need to include the Scope 3, which is basically what's coming to us. For that, to be honest, we have not set up our objectives yet. We'll do that moving forward. Partnerships, again, something that, you know, we really want to insist upon. We have three JVs today. We're talking to potential partners. We need to focus on that to make our strategy a success. Now, before giving the floor to Lottie, just maybe let me wrap up. What are the five things that I would like all of us to have in mind when we think about Haldex, who Haldex is today, and who Haldex is going to be in the future? It's five things. Five. Number one is we are a global brake supplier. We are a brake supplier. This is what we've been doing over the last 130 years, and that's, yes, we're not gonna shift or change of technology every time here, so this is who we are. The second is we have a business model which is robust. This question of 50% aftermarket, 50% OE, many companies would like to have this type of share, you know, to balance the cycles of the market. A very good and robust business model. Third is that we are very much aware of the industry changes that we're going through. It's a question of trends. We are very much aware in the sense that we see that not as threats, not at all, but as opportunities because fourth block, we are an innovative company. When you are an innovative company, there is no fear of changes. It's actually an opportunity because you can surf on the changes to define, number fifth, the right value proposition. This is what we've been demonstrating to the market over the last years, and this is what we're going to continue to demonstrate moving forward. I will be more than happy to answer some of the questions later on. But for the time being, would like to welcome Lottie, and to talk about. Just the last those five blocks. Okay. If we wrap up that into a, let's say, a very top-level figures in terms of sales and EBIT, Haldex has been more or less a SEK 4.5 billion-SEK 5 billion revenues company over the last years. We clearly have the ambition to grow and to go to SEK 6 billion. This growth in the coming years is gonna come from the left leg, huh? Let's make no mistake. On the left leg, so that the current product is gaining market share, aftermarket. That's what's gonna drive the growth on the short term, and we want to be at SEK 6 billion quickly. Because we're going to leverage this growth and keep our fixed costs under control, mechanically, the EBIT will go up, and we want to be double digit in terms of EBIT pretty soon. The wrap-up of all what I said in terms of two figures, SEK 6 billion and above 10% EBIT, that's our objectives. Okay. Thanks, now it's the time for Lottie, so for the financial figures. Thank you, Jean-Luc. Today, I'm proud to present the work that we have done the last two years to strengthen Haldex financials. In addition, I will talk about some of our next steps on our journey to further improve profitability. As CFO, I appreciate that the key strength of Haldex business model is the large share of aftermarket sales. This provides resilience to sales and gross profit, as the demand for services and spare parts typically continues during weaker economic periods. Haldex have demonstrated the ability to maintain a large share of strong and stable aftermarket over time, and it's evident that during COVID, we were less impacted, thanks to the large share of aftermarket. In 2020, our share of aftermarket reached 53%. On a rolling 12-month basis, the corresponding figure is 51%. In addition to being more stable, aftermarket also typically proved to be more profitable. This is shown in the gross margin that increased in 2020, thanks to the increased share of aftermarket in combination with structural cost reductions. Going forward, it's the ambition to grow aftermarket and maintain the share of aftermarket to sales above 50% over time. OEM sales picked up during 2021 following post-COVID-19 market recovery across all customer segments. External market data on new build rates for truck and trailer indicates that Haldex is gaining market share in 2021. We see strong market outperformance in both region Americas and Europe. For both markets, it's primarily the trailer segment that is driving the market share gain. OEM sales in Asia is developing below market. However, the trend is positive, and we are excited to leverage on our new partnership with FAST Group to gain market share going forward. Our updated financial target for growth to grow faster than respective end market reflects our ambition to further gain market share. We believe that based on the momentum we see in 2021, and with the launch of next generation products, we are on a good trajectory towards our growth target. During the last two years, we have taken major steps towards creating a more flexible business model. This has resulted in expanded margins. Actions include reducing the cost base and optimizing footprint. Examples of actions taken are closure of production plants and move of production from U.S. to Mexico and Germany to Hungary to consolidate our U.S. friction business, to renegotiate supplier agreements, and reduction of employees in two separate savings programs. We are reinforcing our cooperation with our partner in India, ANAND Group, as Jean-Luc Désir mentioned, and in addition, we're establishing new cooperation with FAST Group in China. Looking at the cost structure, it's clear that direct material is the largest component. Going forward, focus in terms of cost will be to continue to drive improvement in operations and to create a step change in direct material cost level through best cost supplier mindset and a global view. Looking at the development in operating profit since 2019, I'm happy to show that on a lower sales level, we're able to improve profitability both in terms of percentage of sales and in absolute numbers. The change is quite dramatic. We're improving from a level of 2% to 8.2% operating margin. One contributing factor is the positive mix effect from further strengthening the business model with a higher share of aftermarket sales. Our structural long-term savings programs and the short-term savings are delivering according to plan, and the positive impact to our profitability is evident. For the full year of 2021, the estimated savings are SEK 160 million gross and SEK 120 million net of the reverse effect of the short-term savings. Following COVID-19 downturn, operating profit is negatively impacted by drop in volume. As other companies, we are impacted by the global supply chain disruption with higher raw material prices, freight, and packaging, as well as shortages in components. We do consider these negative impacts as temporary, and with regards to the direct material expenses, we have been able, to a large extent, to mitigate those during 2021. When it comes to freight cost, the visibility is less, and our mitigating actions have been lagging. However, we have taken additional actions to better even out the cost level between the suppliers and the end customers. Worth pointing out that in 2021, we are showing a record low level of non-recurring items also contributing to the improvement in profitability. All in all, we have achieved a structural reduction in cost base which successfully drives improved profitability. As was seen in the EBIT bridge just presented, we are temporarily affected by global supply chain disruptions. Despite these negative impacts, we were able to deliver a strong improvement in operating margin in 2021 thanks to beginning market recovery and a successful cost focus. On top of this, we have historically low levels of non-recurring items supporting profitability improvement. On a rolling twelve-month basis, the reported EBITDA is the highest shown since 2015. Combined, this proves that we have achieved a more flexible business model. As volumes pick up, if we manage to control our cost in supply chain, we see good possibilities to improve profitability even more going forward. As CFO, I think we have managed the financial crisis driven by COVID-19 in a good way, and through the financial transformation, we have come out as a stronger company. It's my view that in addition to having achieved a more profitable company, we have established a company that is better adapted to manage change. I'm grateful for and impressed by the whole team of Haldex employees that during difficult times have made this happen. Managing working capital is key to generate cash flow. We can see some seasonality when it comes to quarterly development, where typically capital is built up in the beginning of the year and converted to cash in Q4. In Q3 2020, we successfully managed to drive inventory levels down during COVID-19. In Q3 2021, we also managed to reduce inventory levels somewhat. However, in the current business environment with supply chain disruptions, optimizing inventory and working capital have proven to be a challenge, and we do have more work to do. To improve cash generation, we are committed to continue focus on improving working capital efficiency and shorten cash conversion cycle. Historically, Haldex has had a strong development of operating cash flow before working capital, except for 2020 during the COVID-19. As previously mentioned, the change in working capital in the last reported 12 months period was negatively affected by higher sales, but primarily by the supply chain constraints. In terms of net debt to EBITDA, we have been able to reach a better position due to higher earnings and lower R&D spend that we will get back to. Product development and innovation is part of Haldex DNA, and it's key to be competitive and drive growth. R&D costs have steadily increased over time due to a capital-intensive and broad innovation agenda. As can be seen in the last 12 months period, we have taken on a refined R&D approach, which means that we will focus our product development on our customers' priorities, namely electrification and connectivity. We have introduced a modular and open approach, and we focus on scalable product platforms. As Jean-Luc Désir presented, partnerships are key for us to be able to execute our strategy, including introducing disruptive technology. It means leveraging our current joint venture as well as entering into new partnerships to secure cost synergies in technology development. Through the refined product development strategy, we will be able to drive innovation in a more capital efficient way. Our combined efforts regarding profit improvement through savings and focus on capital efficiency has been successful. Return on capital employed last 12 months is showing the highest level since 2015. This is achieved despite current supply chain situation. With additional growth plans, step change in direct material expenses, and our partnership strategy, we ensure the right focus to be able to continue to deliver high return. As you can see in the graph, net debt has been increasing since 2015. This was partly due to increased R&D investments, which were financed through credit. In Q3 2020, we introduced a new capital strategy, and measures were taken to stabilize and reduce net debt. On the back of the new capital strategy, we managed to achieve a positive trend in net debt to equity during 2021, supporting our journey to become financially self-sufficient. With new financing in place, we're also looking to diversify long-term financing through a potential bond issue in 2022. To summarize what I have just presented, in short, we have strengthened our business with increased share of aftermarket, gained market share in OEM during 2021, laid the foundation for a more flexible business model, expanded margins through structural cost reductions. In addition, we have introduced new strategies for product development, partnerships, and financing. We see strong potential to continue to grow OEM and aftermarket while also developing disruptive technologies and expanding into adjacent markets. Looking ahead, the strategic building blocks that Jean-Luc Désir presented earlier can be translated into our way of ensuring that we will be able to achieve our financial goals. Starting with the goal of growing faster than the company's respective end market. Overall, we aim to expand the top line through optimizing the good and stable business we currently have, meaning growing the aftermarket, shift to disc brake, and launch the EBS Gen4 that you saw earlier. In addition, we aim to capture strategic opportunities by developing disruptive technologies and expanding into adjacent markets. We want to do this by adapting our product offering, ensuring we have a more energy-efficient and digital braking solutions. To further execute on our operating margin target of 10%, we're going to do a few main things. Optimize our current business by continuing to drive operational excellence and to create a step change in focus on reducing cost for direct material, utilizing global best-cost mindset. In addition, we're gonna leverage partnerships to develop and fund disruptive technology and innovations. I will now hand over to my valued colleague, Nicola Gregory, who is heading up Global Operations at Haldex. Nicola has been with Haldex for many, many years, and she knows every ins and out of the respective sites at our company. Nicola and I work closely together to drive operational efficiency, capital, and I'm really happy with our cooperation. Today, Nicola is joining us from our production site in Mexico, and she will talk about the important topic of sustainability. Thank you, Lottie, and good afternoon, everyone. As Lottie explained, I have 23 years' experience at Haldex, and I currently hold the position of EVP Operations. At Haldex, sustainability is managed within operations, and I'm pleased to take responsibility for that scope within our group management team. While sustainability is led within operations, the scope is company-wide and cross-functional. Haldex has worked to be safer, greener, and more ethical and humane for several years. In our next five years, we want to do more, and beyond that, we need to go further. It's important to our customers, it's important to our stakeholders, and it's important to us. To support that and give the needed focus, we've reorganized and created a dedicated position of a Global Sustainability Manager within the operations function. We've also changed our governance to ensure execution of our initiatives and follow-up and support where needed. Next slide. To identify our key sustainability issues, we've analyzed our value chain to understand the effects of the company's activities, both to society and to our stakeholders. We consider the impacts to society as a whole, but also suppliers, customers, employees, and our shareholders. In the earlier discussions, the value chain was explained in some respects, and we talked about how we go to the aftermarket and also through the OEM channels. Looking at the operational side to that, in our value chain. We purchase both materials for our production, and we also purchase finished goods. The materials and the components are converted to finished goods in our production sites, and these either reach our customers via direct shipment from a plant or via our distribution centers. Purchased finished goods go directly to our DCs for shipment to customers through our various channels. We can say that direct control is exercised over our own operations. We have influence of other areas of the supply chain through agreements, our code of conduct, dialogues, and training. Next slide, please. Sustainability covers more than the green area. Our overall program is based upon four pillars, and that's aligned to the UN Sustainable Development Goals. We are safe in our products through our quality focus and safe in our working environments through the safety programs that we use to protect our employees and also any visitors to the Haldex sites. We are ethical in our business and supply chain through compliance with our code of conduct. We are humane with skilled, dedicated employees where we encourage a diverse and inclusive working environment. Today, looking at the focus of the greener Haldex, we will talk about the fourth pillar and our green initiatives. Next slide. In the first part of the value chain, we can influence our own emissions from our operations such as our production and distribution centers, and we can also decide what type of energy we use. A key action to make our production and distribution more sustainable is to become CO2 neutral for Scope 1 and 2 emissions by 2025. As was mentioned earlier, Scope 1 and 2 is very clearly around what we can influence within our four walls of Haldex. In addition, we have an ambition to reduce our consumption of energy by 15%, and also increase our material efficiency to 97%, where we use 2020 as a reference year. This means we consume less energy in our plants, and we reduce waste materials. We utilize more material that we bring into our facilities. On the other side of the value chain, we have the products we sell to our customers. Here, we look to influence emission levels by developing greener braking systems. This not only fits to Haldex sustainability agenda but supports our customers to meet their sustainability goals. We perform green product assessments during the development process to understand how much CO2 reduction new generation products have versus the previous versions. As Jean-Luc explained earlier, the electromechanical brake is safer and greener with a strong value proposition. It's a fine example of Haldex commitment to sustainability in product design and offering. EMB saves 90% energy, enabling the use of smaller batteries or a longer range for the vehicle. Very much a safer and greener product. Going back to the value chain and the issue with the Scope 1 and 2, we acknowledge that Scope 1 and 2 only reflects some of our contribution to the environment. Our ambition is to drive further environmental improvements and, as an example, addressing transportation, which is a large CO2 contributor within the area of Scope 3. To approach this part of the value chain, we are currently evaluating our consumption and developing our plan, defining where we will be by 2025 and also beyond that. We talked earlier about the need for localization to our production plants here in Mexico and also looking at moving components closer to our facility in Hungary. Some of these value chain design activities are complex yet necessary, and as we define those better, we can have a better idea of how we will influence the Scope 3 area. We have also submitted our letter to the Science Based Targets to support our ongoing target setting, ensuring that we make the right decisions. In summary, we have reorganized to drive further company-wide focus to sustainability. We are designing products focused upon a safer and greener technology. We commit the target CO2 neutral for Scope 1 and Scope 2 by 2025. We are analyzing information and preparing targets for Scope 3. We will follow the Science Based Targets initiative, and we will contribute to a safer and greener world. I'm pleased to still be part of Haldex and also to have the sustainability within this, my scope. Thank you. Thank you, Nicola. Now, we will open up for a question and answer session. If I invite Jean-Luc and Lotte to join us on the stage as well. If we start with a few questions we've received online before we ask the floor here in Stockholm. The first one is from Reinhold Schmitz, and I think this is directed to you, Jean-Luc. What is the benefit of the EMB versus the EBS towards OEMs, fleet owners, and operators? And is there a specific benefit towards autonomous vehicles? Good. Thank you. Thank you, Jenny, and thank you for this question. EMB, EBS, what is the value proposition for the fleet? EMB, again, EUR 700 of TCO per year. Just maybe one value. Today in the world, there are 20 million trucks, right? 20 million trucks. 20 million trucks multiplied by EUR 700 per year, that's EUR 20 billion of value creation. Tomorrow, all brake by air being replaced by electromechanical braking, that's EUR 20 billion of value which can be generated. It's a huge value. This is a fleet value, what I'm talking about. This is TCO. Okay? That's EMB. For EBS, to be honest, it's a little bit more complicated to quantify, but what we see with this EBS, this brain of the trailer, it's this ability to create and to innovate new services to increase, you know, the usage of the trailers. You know that in Europe, 40% of the capacity of a trailer is unused, you know? When you see the trailers on the roads, on average, 40% of them are empty, right? When we think about, you know, improving the usage of that and EBS as the brain of the trailer to improve the intelligence, it's a huge amount, but more difficult to quantify. That's EMB value proposition, EBS with the digital services. Now, the question of autonomous driving. To be honest, autonomous driving, what it is, it's about, you know, not having the needs of a driver inside the bus and the truck. To achieve that, it's mainly related to the ability of the OEs to create the right environment, to sense what is happening around them, and to have the intelligence to develop the right software and the control of the truck. Is it directly linked to EMB and EBS? No. I to be honest, no. We can do autonomous driving with a traditional ADAS brake, or we can do autonomous driving. The only thing I would say is EMB can play a role in terms of safety because reducing the safety distance, so it gives a little bit more, you know, confidence when we talk about autonomous driving to have the state-of-the-art and the best, you know, braking solution. It's, to be honest, more indirect. That's the first question? Yes. We have a question from Mats Liss. Could you indicate what your competitive position within EMB is? Do truck and trailer producers use dual sourcing? We can start there, and then the question continues. Okay. The first question is on Could you indicate your competitive position within electro- Yeah. Well, it's. mechanical braking? Okay. EMB, everybody understand that, when we talk about Europe, we need to change the regulation, the first SOP in 2026 probably. It's not a mature technology, let's be clear. What can we say? As a fact, the only thing I would like to say is to remind what I said before, we have a major European OE which is going to demonstrate next year the best technology that this OE foresees for the future on electric truck. This OE has decided to select us. Most probably we're ahead of the pack, most probably. Now, do we know exactly what the other competitors do? To be honest, we are not in their secrets, but probably they are a little bit behind. That's on the competitive. The second was dual sourcing for? If truck and trailer producers use dual sourcing. Yes. For in general or for EMB? The question is relating to EMB. To EMBs. Yeah, but EMB is not sold yet, so I don't know. Mm-hmm. what we can say is, yeah, well, the truck and trailer manufacturers, yes, they like to manage different suppliers for you know drum brakes and air disc brakes, that's for sure. Continuing on the question of EMB, how does the content Haldex supplies today compare to the current system, and how does it impact our aftermarket potential? Yeah. It's an interesting question and well, not dangerous question. Today, when we supply an ADAS brake, you see the ADAS brake, it's a caliper, you see? Well, wheel ends, okay. Order of magnitude of the price, that's let's say 100-120 EUR per piece, something like that. You multiply by. You see the type of order of magnitude. Okay. EMB. EMB is that, exactly the same system, the caliper, plus the electric motors, plus the ECUs, plus the capacitors. That's a complete braking system. This is to replace, you know, the compressor, the air compressor, the lines, dryers. That's what's today. The content we're talking about here on EMB is several thousand EUR. The content per vehicle, when we say that Haldex will become a system suppliers, it would dramatically increase the size of the content per vehicle. It's a disruption for Haldex in terms of deliveries and in terms of contents per truck, and that's the challenge which is ahead of us. That was a question, and the second was, How it impacts our aftermarket. Yeah. It's a good question. Yes, of course, it cannot be win-win-win on everything in EMB, so this is okay. I mentioned it before. With EMB, we have 50% less components. If there are less components, there's less aftermarket. That's clear. That's a little bit less aftermarket, which is good for the fleets because it can improve their TCO, but it's true that for a tier one, you don't have an air compressor anymore to change. You don't have an air dryer to change anymore. There is a little bit less aftermarket. It's a gain of TCO, and for us, Haldex, still it's an incredible opportunity because we would go from equipment we sell at, let's say EUR 100, to a system which is worth thousands of euros. This is why it would be a huge benefit for Haldex. In terms of impact. Even though for aftermarket it would be a reduction. Clearly. Another question on EMB, this one from Elliot, before we hand over the question here in Stockholm. Do you envisage EMB to be only to electric trucks? It perfectly matches electric trucks. It could be used for any type of trucks, but it's really, really. It makes sense. This is why, you know, because EMB has been talked about for years and years now. But we're really at the time, and, you know, you are investors, so you know, you listen to Volvo, to Scania, to all those guys. All of them explain that, okay, it's 30%, 40%, 50% of the production. When they go electric, the obsession of all those people is to be as energy efficient as possible. To be energy efficient in all aspect of the design of the trucks, it goes with EMB. So theoretically, EMB could be used for whatever technology of motors. But it's really, really. It matches very well the electrification trend and it makes very much sense to link, you know, EMB to an electric platform. It's really very much natural. Who would decide on when to change to new braking technology? Is it the truck manufacturers or the trailer manufacturer, or they do that together? Okay. For EMB, what we foresee, that will go on the trucks first, right? Whom do we talk to? Two types of customers. First one is the big ones, the traditional ones, the big names that you know. Okay? And those people are extremely interested in this technology when they talk about electric truck, for example. Typically, this OE I have in mind, he wants to showcase all the technology and they say, "Okay, on my next electric, full electric truck, that's the type of technology." That would be the one to decide. To be honest, that's one. There's another one. You know that electrification, it's a huge disruption in the passenger car and in the truck world for a very simple reason. Very simple reason. It's relatively easy to make an electric car or an electric truck. It's relatively easy because an electric motor is. I wouldn't exaggerate it. It's like the one that you have in the lift. It's pretty simple, an electric motor is. It's very much generic. Then the battery, it's a battery. You can buy that. The number of players who can go into this business, the barriers of entry are much lower with this new technology. You have new entrants. You hear the names, right? They come with drastic, disruptive solutions to support, you know, UPS, Amazon, you know, just public names. Arrival, Rivian, Einride, all those guys. Because this electrification give them a fantastic opportunity to come up with something new. For us, I'm personally convinced that EMB could be extremely successful with those guys. Because those guys, when they come, they come with pure electric approach. Pure electric. They will not mess up with, you know, traditional engines. They don't have the know-how. They don't. They will go directly to the full electric. Coming back to this discussion I had with one CEO of them yesterday, he said, "That's exactly what I need, EMB. Solid electric. No fluid anymore on these electric truck and electric buses." Coming back to your question, EMB is a question of trucks. Trailers, to be honest, maybe at a point of time, but not now, to be honest. Not now. This is on the truck. Those two, the traditional ones, but the new players, because it's really, it fits their needs extremely well. Extremely well. There was a question on the automatic brake adjuster. Is that a growing business still, or is it a shrinking business? Good question. Well, in terms of markets, it is. On the OE side, in Europe, there is no drum brakes anymore, nearly, right? In the Americas, it's still the vast majority. I was there a month ago, and I was very much surprised talking to the trailer manufacturers and even to the truck. There's no massive change on the OE side towards air disc brake, you know, next year or in 2 years. They're very slow. Let's be clear, the trend is there. On the new trucks and trailers, probably within 5-10 years, it's going to be a shift towards air disc brake. Which doesn't mean it's the end of our business, because you have all the parc of the trailers and the trucks which are equipped today with drum brakes. As you see, we have more than 50% of our sales coming from aftermarket. This is why, even though the markets, independently from Haldex, you know, markets of automatic brake adjusters probably reached its peak in the past. Probably it is slightly eroding, but it's going to slightly erode for the years to come. What is the slope? Difficult to say. But it's gonna be for a while. Really for a while. In the strategic plan that we have issued, we're actually planning to grow automatic brake adjusters because we want to gain market share. Don't want to go into detail, but we want to have two brands. To be able to have access to different segments. To have the traditional Haldex brand, and then to have a low cost brand, so would be, Midland in the U.S. and grow in Europe, so that we can cover more segments. Even though the overall market is, let's say, stable, declining, we want to grow our market share and grow our volumes on this product line. The supply chain bottlenecks, can you specify where are the bottlenecks? Yeah, yeah, what I'm gonna say, it's quite common in this industry right now. Semiconductor is the number one issue that we have, but it's, as we have different product lines, you know, still our top line is impacted but not massively impacted. The number one problem is semiconductor. We are limiting our production because of our suppliers, because of that. That would be the number one problem. For the rest is tension related to deliveries and, the thing is not that we cannot produce, but it's difficult to plan. It's the on-time delivery to our customers, on-time delivery from our suppliers. This is not that stable. Very specifically, semiconductor. If we take a few more questions that have come in online, from Kenneth Toll Johansson: Can you talk more about your disc brake business in Europe, North America, and Asia, please? Okay. It's my first, so I don't know how precise I can be on the figures, but Keep it quite generic then. Quite generic? Okay. Let's keep it quite generic. Okay. In Europe, this is where we have most of our business today, and it's on the trailer side and with especially one customer. What I can say is we have gained significant contracts with some trailer manufacturers in Europe, so we will see quite drastic growth in the years to come in Europe with new trailer manufacturers. On the truck side in Europe, we published that we have won a contract as a European OE, so we see good growth in Europe. In the Americas, we are in contact with big fleets as we speak, and we signed a contract last week, but late. Okay. We're very in close contact with big fleets in the U.S. for the launch of ADB brake next year. It's not like in trucks. It's not when you sign a contract for ADB brake in the Americas, it's not for 3, 4, 5 years down the road. It's basically you sign the contract for tomorrow because they can change, they can switch the technology quite easily on the trailers. We're very active in the Americas, but with the fleets, again, we talk to the fleets, to the big fleets, and we ask them to specify. We run some tests with them and to specify. Stay tuned for hopefully some communication soon out of the U.S. In China, as you know, we have our JV with Fast, and we are currently on the test phase with some customers. The customers have put our brakes on their trucks, and they're testing our products, and hopefully we're gonna be able to communicate some contract wins extremely quickly. Another question from Mats Liss: Could you say something about the timeframe to reach SEK 6 billion in sales and the 10% EBIT margin, and also how much of the R&D expenses will be capitalized? Oof. This is for Lottie Saks, no? I can answer if you want, but. I think, I mean, in terms of when we expect to reach this growth, you should sort of. Maybe there were some indications on the slides that it's sort of a little bit in the medium to long term. It's not gonna be next year. We're looking at a sort of slightly longer time perspective. When it comes to capitalization, as we now are launching the EB+ 4.0, which have been our main product development the last couple of years, capitalization will go down. Going forward, it will primarily be related to the EMB product and our scalable brake system platform, which is more the IT part of it. I want to mention then that also when we go live now with the product, the investment that we have, obviously in the balance sheet, will start to be depreciated. In terms of looking at below EBITDA, we will have a pressure from increased depreciation. Was there something more than that? No. Thank you. We have a question from Elliot Lobo: What does the strengthening of your partnership with ANAND Group specifically involve? What is involved is that Anand is an Indian company with whom we've had a JV for years now, and I went there in August to strengthen the partnership. You know, India is very good in terms of cost base for certain product lines, and the very product lines we're contemplating with Anand are automatic brake adjusters and actuators. For the time being, automatic brake adjusters, and we're contemplating options to utilize India as a main footprint for the rest of the world for automatic brake adjusters. It's contemplation for the time being. We have a bit more of a personal question, and that is: What is the reason our executives tend to not be shareholders of Haldex? Executives are not shareholders of Haldex? Yes. Group management. It's for you or for me? I'm gonna change that. No, seriously, it's. I've not taken that. No, I personally am gonna change that, at least for me. We also have a question of the Fast-Acting Brake Valve and whether it is still a product of focus for Haldex. Yeah, Fast Acting Brake Valve, so that's. I talked about the Scalable Brake System before, so which is a platform which has different, you know, possibility of evolution. Fast Acting Brake Valve was one, and EMB is another one. Fast Acting Brake Valve is basically this ability that we can, again, for safety reason, improve the braking distance. When we talk about platooning, autonomous driving, and these type of things, that's something of interest. This technology, is it an interesting technology? Yes, it is. Then it's like every technology. What is the level of maturity of the market to accept these type of things? What is the level of appetite from the customers towards this technology? It's, you know, we talk to our different partners, and we've concluded together it was probably good to freeze, not to stop, but to freeze the development for the time being, and to focus on what we could see as a potential to give more interest in the short term. This is why, you know, we have EMB, which probably is of a higher interest versus FABV on the short term. It's not stopped, huh? It's frozen. Let's really be clear about that. It's just frozen. As soon as customers are ready, we can go back. The last question to end our Q&A session. "How is the Electromechanical Brake business with our Chinese electric bus players going, and if we can expect any commercial shipments in the coming years? Yes. As you know, we have a JV in China with the VIE Group, where, you know, it was set up a couple of years already. We are in contact with several fleets in China. We will equip some of the fleets. Hopefully, we can communicate about that soon, but we will equip some of the fleets, you know, in the years to come. Okay. I'm not sure I can be much more specific than that. We just got in another question. "Does the EBIT margin target include R&D expenses? Yes. Yes. Yes. To become CO2 neutral for Scope 1 and 2 in 2025, is the main driver to change to renewable energy, or do you have any other measures? No, well, I mean, to be clear, when we say CO2 neutral, you know, by 2025, it's two levers. The first one is actual reduction of the consumption, energy consumption. That's one, and the second is the compensation of the energy we use. That's the two levers which are usually contemplated when we talk about CO2 neutral. We're going to activate those two levers. We have a last question about our contracts and whether they include raw material price changes. Yeah. Yeah. Yes, we live in a world where, yeah, raw material goes up and down. In my previous company, we had a steel price crisis in 2016. Now it goes wider. It goes wider because we also have freight costs going through the roof. To be honest, the first time in 20 years that I see that freight costs go bam, go like that. What we really want to achieve, let's talk about what we want to achieve. What we want to achieve is that we are not caught in between. We don't want to bet on markets going up and down on these type of things because that's not what we want to do. The vision is to try to have in our contracts, you know, clauses related to raw material, freight, and all these type of things. That's the vision. Very specifically, where are we today? In most of our OE contracts, you understand OE contracts are what we sell, so it is a bit less than 50% of our business. We do have clauses related to raw materials such as steel and aluminum, but not freight. Not freight. This is something that we would like to start implementing and discussing with our customers to start talking about freight because it's becoming an issue, really an issue. For aftermarket, there is no clause. Yeah, by definition, you know, this market is not structured in the way that with the distributors or with the OEs we can have raw material clauses. What we're doing is to adjust our prices according to what needs to be done. We have announced, you know, in the Americas, quite significant price adjustments, you know, starting on the 1st of November this year, and in Europe, significant price adjustments as well starting from the 1st of December. That's the way we handle it. No systematic mechanism on the aftermarket, and yes on the OE side for raw material, but we want to extend that on the OE side to potentially freight as well. I don't see any more questions, so with that, I want to thank you all for attending our Capital Markets Day, and please reach out if you have any further questions after this. Thank you. Thank you. Thank you very much.