You don't even know it's there. Just something in the air. Something that makes you feel strong, inspired, and free. You don't know it's there, but you would if it wasn't. Ventilation changes everything. It brings out the power in people. What's the secret? Nothing, really. Just fresh air, ideal temperature, and balanced humidity. It's simple because we make it simple. That's what we do. We simplify, we guide, and we are by your side. We turn complex systems into easy product solutions and make you shine. Our air handling unit, Geniox, is one example, designed to run with the lowest possible energy consumption with the highest quality and control. It's intelligent and created for the future. Maybe it's our Swedish heritage, but we really care for the environment, for energy efficiency, and for fresh air. You won't even know it's there, but it changes everything. Again, thank you very much for being here. We are very delighted to have you here and to be able to present and to describe a little bit about what is going on and what is ahead of us and to our Capital Markets Day in 2023. As a follow-up to which we also will come to later on our Capital Markets Day that was in September 2019. During the rest of this day, I will shortly start with a short presentation of Systemair a little bit where we are today, just very short, brief introduction. Lee Morgan will have a short presentation about our sustainability work, followed up by Anders Ulff, our CFO, with some words about the financial development in the Systemair Group. You will have another short coffee break. We thought now, in the afternoon after lunch and everything would be good if you can stretch your legs once more. We'll go into operational excellence, some words about our manufacturing and our measures that we have there. Some words about the outlook, about the market, about the development and the mega trends that we see. The short break after we are quite flexible, I think we will keep it rather short, follow up with some words about profit improvement and an outlook on the strategic focus, follow up by a general Q&A, catching those things that we have not been able to address throughout the presentations. Any questions so far? We go from there. Systemair, as you all know, established in 1974, based on a product invention by Gerald Engström, here in Skinnskatteberg. Our last fiscal year, we had a turnover of roughly 960 million EUR, and we're listed on the Nasdaq Nordic Stock Exchange since 2007. Today, we operate our own companies in 52 countries all over the world, and we have 29 factories in 21 countries. All in all today in the group, we are around about 6,800 employees, and we are selling to around about 35 countries. I wanted to start to give you a slight overview about our organization. In our management team, of course, Anders Ulff, who is responsible for not only for the finance but also for SG, the human resource and IT. Our Vice President of Sales, Ulf Glassel, who today, sorry, went ill. He is sick, but he is responsible of the market area in both in Europe and Africa. Our Vice President of Marketing Products, Bo Skansen, who presented the residential filter solutions for you, in charge of the products and the marketing communication. Anders Gustafsson. Here he is. I did miss to present him early on. Anders Gustafsson, our Vice President of Global Supply Chain, Logistics, Sourcing and Technology. Janni Weber, our Development, which is of course a very interesting one. Today, also heading up service and our pricing activities. I have some direct report, which is the North American market area and the Asian Middle East. We have our management team, the group management, and this is our operational management team that is reporting and working directly with our group management team. In Systemair, we strongly believe in our internal Systemair corporate culture. Our corporate culture is driven by our standards and values. This is something that I proudly can say that is in the company forever. It has really developed on a very positive way, to everyone's advantage over the years. The main words for us is to prioritize, to simplify, and to create trust. Under the initiatives is that we really want the people, our employees, our management, to take initiatives, be proactive, be engaged, and be dynamic. We want to base everything that we do on factual decisions, fact-based. Don't overdo it, but you should have the facts in place. We are loyal to choosing strategy, and we follow the strategy. When we simplify, of course, to simplify, it's based actually to where the company started with the in-line duct fan, the straight way. Don't make it more complicated than that. Try to simplify it. It's a systematic approach or a standardized approach, and by that, of course, also standardized products, and I will come back to that. I think those of you that have met me earlier, we always believe and we always pray about standardized products and standardized processes. That's really important as a backbone of what we do. When talking about trust, it's internal, but foremost, it's trust towards our customers, our partners. It's a clear communication, it's about our product reliability, and it's a collective responsibility of everyone within Systemair. In Systemair, we are carrying mainly those brands. Of course, the main overall arching brand is Systemair, clear. Systemair is over all our ventilation products. Fantech is our brand in North America. As you can see already with the docs in beginning and with the Systemair company, we over time, it will surely also transfer over to Systemair. North America market and customer behavior is a little bit more, how should I say, maybe old-fashioned. They try to or they like to hang on to old things or to things that they know of since very, very long time. The Fantech brand as such still carries a lot of trust to a lot of smaller installers, and therefore it also has still a value. We have parallel to that also in North America, Systemair for the more European, more efficient products. Frico is our brand for airborne heating products such as air curtains, fan heaters, et cetera. To say that Frico, the customer base of Frico is the electrical wholesaler installers, which is different from the ventilation installers. Menerga being our German producer of high energy efficient units, but also dedicated to the pool or dehumidification business, which is a totally different project area. Just to give you an overview of our market shares or our market areas. Eastern Europe and the CIS countries, around about 12% of our total turnover, North America 11%, Western Europe 45%, and Nordic region 18%. What we here see as other markets, it's a sum of, today it's Turkey, it's Middle East, and Southeast Asia. Yes. As you partially have seen throughout the presentations that you had earlier today, we of course have several product areas or business areas, we call them. The main being for us air handling units, fans, where it all started with, but today fans, it's not only the small fans, it's everything in every size, up to our standard axial fans that are up to 3.2 meters in diameters from our German and Malaysian factory. Air distribution product being what you see up here in the ceiling, which are these diffusers, could be simple grills that you have over there in the wall. Today we have actually three factories for these kind of products. The residential systems that you had about in the presentations earlier, fire safety solutions that are manufactured in the same manufacturing points where we also have the air distribution products, and then the air conditioner or the AC business. At the end, under the Frico logo type, you have the airborne heating products. The question sometimes comes up, I made a little add on to these slides of the of the share in volume of these business areas of the total. Air handling units today is actually about 29% of the total volume of the Systemair group. The fans have 23%, and then you have a fine share of 10% each of air distribution, residential, fire safety, and air conditioners, and airborne heating plus having 8% shares. Just to give you the overall picture of how the different product groups are divided. There it comes. With all these different products, a product is a product. Two products or three products together, and then combined with the control system is a solution or a system. We are supplying products that we can combine to systems, and these are then delivered to different applications. With our product we have in the group, we are more or less able to deliver every application that in some way is connected with air or air movement or air treatment. The mains even here are also sorted from sizes, commercial applications, absolutely, starting with everything like a industrial or an office building. Industrial applications being everything from a chiller, an air handling unit, or could also be fan exhaust systems. Residential applications, infrastructure, metro roads and tunnels, big actual fans. Then healthcare, which is a growing application for us. We'll come back to that. Education, schools, a lot of talking and actions around schools throughout and after the pandemic, of course. Then hospitality and entertainment, and as you also discussed out in the bigger hall earlier today, data centers. What has happened throughout the last year and what do we have in the pipeline? I just wanted to make that re-reflection as a recap. Throughout 2022, we acquired a company, SagiCofim SPA, in Italy. That is mainly driven by that SagiCofim has a very interest for us as a bigger part of the business, which is air filtration, filters. In the wake of course, hospitals, operational ceilings and these kind of things, intensive care units, they all now are very, very popular and very high demand, even before the pandemic, but even more after the pandemic. That is, of course, a good application of big interest for us. The other part of the business for SagiCofim is actually air distribution products, which is already in the market and is already sold by Systemair as a group. Then we also acquired in Italy the company Tecnair. Tecnair makes precision cooling units. And as a matter of fact, these precision cooling units are going to data centers and to healthcare applications. There was also a double effect. Then we also acquired a smaller company in Germany, or the final shares, of course, we already had some of them, of Burda. Burda in Germany is a high specialized company in infrared heaters, but they are with Bluetooth or Wi-Fi and have a lot of different applications for hospitality that we didn't have connection to before. That made really good sense for us, for especially the area of airborne heating. As you might have read and you're aware of, on November 17, 2022, we had a press release about the sales of our Systemair AC division to Panasonic. Here I need to mention also part of that sales of our air conditioning part is actually that Tecnair also moves with that package. We were very proud of that after the acquisition of Tecnair, we managed to integrate them and move them into our factory within three weeks. Now they're moving over to Panasonic in this acquisition. It makes sense because they're in the same factory as the existing Italian operation of our air conditioning. It also has a lot of synergies because of it's the same kind of technology, the same components, et cetera, et cetera. It's a perfect fit for that factory. Thereby it also makes sense to be part of the Panasonic acquisition. I will come back a little short. I know that Janni will also come back to the Panasonic acquisition. Also in the year 2022, we divested our operations in Brazil. In Brazil, we had a factory for air handling units. Even before the new president in Brazil, it was expectation that there should be some Bolsonaro effect. Then came the pandemic. Then were election again. When we had the opportunity, we withdraw from Brazil. We thought it was better to make an exit because the overall outlook of a technical upgrade and a technically for us interesting market was not there on the long or midterm perspective. As a follow-up of that, if you're not in Brazil, and we today only had the operations in Chile and Peru, we also had, at the end, we also made an agreement with Mar del Sur in June 2022. Mar del Sur is a national distributor in Chile, and they have now the exclusivity to distribute our products with the only Systemair company left in Chile. We have more or less withdrawn from South America. The things that we have bought or divested need to be followed up what we do instead. We invested in a new or we built a new factory in Pardubice in Czech. It was a new factory, or it is a new factory for a company that we acquired some years ago. I will come back to that later. It's a company, Recutech. Recutech is a producer of counter flow heat exchanger. They had come to the limit of capacity and existing premises needed to get much bigger. We also invested in expansion of our factory in Maribor, Slovenia, where we bought the adjacent factory on the left side in the picture. By that, we were able to add, in the first step, 8,000 square meters of production with the possibility to add even some couple of more thousand square meters if we renovate or take care of the rest of the property. Also to mention that we in November, before, also expanded in Tillsonburg in Canada. Here that was a lucky more or less by the same time that we expanded, these investment packages for schools in North America like exploded. This factory today is already going on its limit. A really good opportunity also. We have the investments that we have ahead of us because of this in the market growth. First we see the growth coming. Those of you that were part of the discussion that we had on the residential side, as Tobias also mentioned, we are running a little bit on the ceiling when it comes to our production capacities in Lithuania, and that's why we already started our expansion project for our factory in Ukmergė in Lithuania. To here add another 14,000 square meter of production area that is needed for residential and for air handling units. Also we have a need for expansion of our production capacity in Lenexa, US, because what is happening in US is that finally the building code have been changed in US, starting in California, Arizona, Texas. Now they also demand balanced ventilation. What does balanced ventilation mean? It means in all residential applications where you either renovate or you upgrade and you need a new sign-off by a building authority, you need to have balanced ventilation, which means that you need to have residential ventilation in the buildings. Today, we have a factory in Canada for residential ventilation that has been growing tremendously well over the last couple of years, now the growth coming U.S., and we need to prepare for the local so that we don't have to ship all the goods from Canada to U.S. We're investing in Lenexa, in U.S. In Germany, in Windischbuch, we have taken decision and we're starting up in the next couple of months to expand the logistics center that is just running out of space. Germany and Windischbuch is also by that, is also one of our distribution centers in the group. Okay. A short introduction what we are doing, what has been happening over the last year. By that, I want to directly follow it up and hand over to Lee to talk about our sustainability projects and what we do in Indu Group in that aspect. Thank you very much. Lee, the floor is yours. Great, thanks. It's working as well. Okay, thanks, Gerald. My name is Lee Morgan. I am obviously Sustainability Manager for Systemair, and I'm going to give you a brief insight in our sustainability work and our efforts. I would like to start with this. What we sell, and I think the message has got across to most of you, actually makes a big difference in terms of sustainability as well. Why is that? Buildings all over the world stand for about 40% of all of the emissions that in total, and that's a lot. When the buildings are in operation, of course, heating and cooling is a big part of this. Supplying really energy-efficient ventilation mitigates the climate change because it reduces the energy uses, that's kilowatt hours, and also then indirectly avoids emissions from CO2 as the additional energy needed to heat the building is less, or cool the building if you're in a hot country. IAQ is something we use a lot in the ventilation business. It stands for indoor air quality. Of course, the most simplest solution if we want to reduce the building's energy use is to throw everything out which uses energy, but that's not feasible. We need good air to function for our well-being, and about 90% of our time is spent indoors. It's really important with a good indoor air quality. This combination that we have is really strong, and most of our products are in the business of increasing indoor air quality and doing it in a really energy-efficient way. I'm really happy with this, of course, being the sustainability manager, but it makes a difference both for the planet and for people. It's good for the health and well-being as we spend so much time indoors, but also of course to mitigate the climate change. I would like to dig a bit deeper in why it's so important about the energy efficiency. When you hear energy efficiency, sometimes you only think about the electricity that the motor uses, for example. The big difference is in energy recovery. Today, for example, it's about 21 degrees in here and about zero outside. When we bring in the outside air, we of course want to transfer as much as possible as the heat in here to the outdoor air. Otherwise, we have to use other sources for heating, that's what's really energy efficient. The exact same logic works if it's the other way around. If it's really hot outside, we want to keep the cool indoors. In essence, it's circularity, which is a popular word in sustainability. It's almost as broad as sustainability, it's about reusing, recovering, in this case, we are recovering energy. That's really good. Last year, our last fiscal year, our products put on the market only that year, not accumulated, contributed to savings of two terawatt-hours of energy, which is a huge number. If you convert that into where they were placed, because of course, depending on where in the world they are placed, they avoid different amount of carbon dioxide, depending on how clean energy is, and also if it's natural gas for heating or similar. It corresponds to about 500,000 tons of CO2 emission avoidance. If you calculate it to cars, about 280,000. Not electric cars, of course, fossil-driven cars. Now, as we're in the business of energy efficiency and indoor air quality, it also means that we're very well-positioned for future financial incentives. Such as the Green Deal, which I think most of you heard of. Part of the Green Deal, the Renovation Wave, which is becoming really important now going forward, and recently, the REPowerEU to reduce our dependence on natural gas. Really happy also that in the latest year or two, the U.S. has come back on their feet when we talk about energy efficiency and the Build Back Better Act and Inflation Reduction Act. The really strong powers forcing for more energy-efficient buildings, basically, both new and existing. The EU taxonomy, my favorite subject, it's quite new, as you know. In the EU taxonomy, there is an area called manufacture of energy efficiency equipment for buildings, and that fits us quite well. What we reported last year was an eligible turnover of 42%, meaning we have about 42% of our turnover included in the taxonomy. Right now we're working on producing the align number. We, as you know, report four months later than most companies. For this fiscal year, we're also going to report an align number, and we're expecting a good one as we are in the business of selling highly efficient energy equipment, energy-efficient products, ventilation. Of course, it's more than our products. Sustainability, it's a broad topic, and I'm happy to say that we have a complete ESG agenda. ESG is of course environmental, social, and governance, also often used instead of sustainability. As you can imagine, in the business we are, it's been a central and natural part. Sustainability as what we sell and what we put on the market makes a difference for the environment. We also, of course, have a complete framework. We have a responsible enterprise where we take responsibility in our value chain. We have sustainable operations where we work hard with improving our own environmental impact and also strive for a sustainable workplace for our employees. Our sustainability framework or strategy consists of these four areas, sustainable products, of course, and the three other areas to have a complete ESG agenda. I'm happy to say that it's part of our strategy, and it's integrated. These 4 focus areas consist of 12 core issues, and those core issues are the material questions for us but also for stakeholders. Sure you recognize these. I'll show them briefly, and if you want to read more about them, we have a logic of why we contribute to them on our group webpage. We contribute to 10 of the Sustainable Development Goals directly or indirectly because we exist, and we're happy about that, and we work really hard to develop as well to help and meet the Agenda 2030 target that the UN set out. This is my final slide, and you in here probably know more than most that sustainability also more and more is about proving that you actually are making a difference and not just talking about it. I think I've quite clearly stated our products actually are making a difference, and they have been for a while. We of course also, in the other areas, we invest resources and money to develop. As an example, on responsible enterprise, we are now working with our human rights due diligence process to make sure that we check our suppliers and audit them in a good way. For sustainable workplace, we are developing a more ambitious plan for equality and diversity and equal opportunity. For sustainable operations, this has not been communicated yet, but we are committed to Science Based Targets. We haven't got the official formal confirmation from Science Based Targets as they've been on quite a lot of holiday since Christmas. This means that we have about 24 months to get our targets confirmed. This is about our own emissions. Great. I kept that quite brief. If you have any questions, we can take them afterwards, and I'd be happy to answer them in the Q&A session. I'd like to just mention one more thing because the next person to talk is the CFO, and he knows a lot about quarterly and annual reporting. One new thing that we just implemented is a quarterly reporting of a lot of our sustainability data. Before, we only did it annually, but now we do it quarterly for some of our key data. This is really good for me, of course, but also for a company to look at how we progress and also to feed back to all our subsidiaries to have a more frequent update of data. Great. Thank you. Happy to give insight about sustainability at Systemair. Now our CFO, I wonder what he's going to talk about. Anders. Thank you, Lee. What can it be? I'm the only thing then between you here now and the fika break in 15 minutes from now. I hope you can bear with me for a while more. It's coming back a little bit to your home turf. Maybe we're talking about finance now also. We are quite proud within Systemair over our financial development over time, and it's seldom that we have a graph that is for showing the development over 25 years. It's a long time. I think it proves really that we are able to generate growth over time. During this period, you know, we had a financial crisis back in 2008, 2009. We lost 3.4% in volume during that recession, and also during the pandemic year 2021, we lost 4% of sales. We think we can handle quite well, and we have a good resilience against economic downturns. We are not really dependent upon a specific customer or a product segment or a market. We have one foot in renovation market and another foot in new build also, which gives us a good resilience. We are also happy to conclude here at our first quarter report that we also reached the landmark of achieving sales over SEK 10 billion. Also, as announced this morning, we have a good growth during November, December. As you saw, those of you who read the press release, we had 31% growth in our invoicing. We're really happy to conclude that. Also looking a little bit forward then, we see that there are really good growth opportunities moving forward, and I know Jani, Roland, and others will talk more about that. I just want to mention one thing then about the Green Deal, the European recovery program. The aim is really to double the rate of energy renovations of building, and we are talking about 35 million buildings, and of course, HVAC plays an important role in this also. We believe there are good possibilities to continue to grow for us. Our financial targets, maybe you expected us to revise them, but we would like to reinforce them at this point, really. Maybe if you remember on the last Capital Markets Day in 2019, we also communicated clearly that our main focus out of these four targets is really on the profitability target. We will show you a little bit about the journey we have made and also what we have done in order to get closer to the 10% profitability target. The growth target we revised in 2019 from 12% down to 10%. We believe that it's still quite an aggressive growth target, over the last 10 year, we have generated growth of 9.4%. We think we can achieve this target. Financial position, equity to asset ratio, we have a goal of 30%. We are on 45.5% last year, no problem there. Dividend, we increased that from 30%- 40%, and during the 2 last years, you can see 48% and 44%. We are in quite close to that target as well. Digging down a little bit more in our growth really, the organic growth is also something that we believe is of course, something that will help us to achieve the 10% target. Over time, we believe that we can generate somewhere between 4%-8% organic growth. We had, before the pandemic, we had 10 years of consecutive quarterly organic growth with one exceptions. I think that proves really that what we are able to do. If we can do 4%-8% organic growth, the rest up to 10% needs to come from M&A also. We believe that there are many interesting opportunities still on the M&A market, so we can continue to acquire companies as well. We have also identified organic growth initiatives, and this is part of our process where we do strategic meetings with our subsidiaries, but also in the budget process that we are about to start now. We have a very wide product portfolio, but we don't sell all products on all markets, so there are big possibilities to grow with existing portfolio. We have some focus areas that we have identified that we will target even more, where we believe that we can grow faster than the average growth here. That is the residential area that you heard more about out here. It's the healthcare sector, school, and also within the service segment and circularity. Renovations and energy upgrades will continue to drive this demand also, as mentioned before. I would like to spend a little bit time on this one then, because as I said before, profitability is for us the most important target right now then. We still believe that the 10% target here is possible. We are getting closer. I would say that somewhere around 2014, 2015, we started to put profit over really, and we communicated this very strict internally. I think we have proven that we are able to improve our profitability and that we can reach 10% and hopefully beyond that also. Julie, was there a question? No. Okay, as Roland mentioned a bit, AC segment will be divested then. We'll come back to that, but that, since that segment has a profitability under the group average, it will add another 0.4 percentage point to our profitability, taking it up to somewhere around 9%. Of course, you know about our Russian operations, and we would like to mention a bit about that. I have a slide about that also, so we'll come back to that, but that has also affected lately our margin also. It has about the same effect as the AC segment have. We believe in economies of scale, and we believe in standard production, and organic growth initiatives will contribute to economies of scale. We believe that growing in these areas, we can also improve our margins. We have established a central price council that have had a lot to do during the last one-two years, really, where we have constantly reviewed and increased prices. We have implemented a stricter control system for the subsidiaries. If they would like to make quotations, they need to ask quotations for a certain level. During the pandemic, during the supply chain problems here, we have had several inefficiencies related to our production also, which has affected the margin. We have higher sick rates, and we have also seen that we have been able to produce only smaller batches in some cases due to problems with components. Also that can help us to implement a higher margin. We believe one of the most important areas also moving forward is to review constantly our production setup and footprint, really, to continue to work with that and improve profitability. We have hired resources in that area, and we are putting more efforts there. By all these actions and many more, we will be able to reach the 10% target, we believe. Yeah, just a recap then of the AC segment then. What has been agreed with Panasonic is that we will receive SEK 1 billion on a cash and debt-free basis for the company. The preliminary capital gain for this is around SEK 450 million, preliminary. This will be reported within our operating profit. Until then, the AC segment will be reported as a separate asset held for sale. We expect to close this transaction somewhere around March, April, so far everything is going according to plan. These are some pro forma figures then with divesting the AC segment. We as a group then will lose around 7% in volume when that takes place. As said before, our operating profit margin will improve with 0.4 percentage point. The proceeds that we receive for this transaction will help us to lower our debts going from somewhere around 2.05 leverage down to 1.34. It will help us to decrease our interest expenses and make this more possible to make other interesting investments also. A question, Manny? Yeah. Okay. Yeah, absolutely. I understand that you have in the deal, you're supposed to keep sourcing these AC products. Yeah And include them in your offering. My question is, will, I mean, you will not lose that kind of revenue and you will not, I believe you will not gain that kind of margin also. No, you're right. Comment on that. Maybe I expressed it incorrect there. We will not lose 7%, but we will lose some of it, but it's not all. We have a supply agreement with Panasonic, so we'll continue to source products from these production facilities. The biggest difference is that we will not own the production in Italy, in France, and in Norway. If you recall from Roland's presentation, AC segment is totaling 10% of the total revenue. There's a 3% difference also that is not included in this transaction. It's other AC products. Then to mention Russia, it's not that fun, but we need to be open about this also. Already 4th of March 2022, we stopped all the internal deliveries to our subsidiary in Moscow, and with lots of sales offices around also. Already since the invasion of Crimea in 2014, we have lost volume in Russia. We had at most 15% of our sales on the Russian market, and it's a highly profitable market also. Since then, it has decreased from 15 down to 5% at the war outbreak, and today it's a little bit over 1% left of the total sales. It's already more or less diminished. We have communicated in our Q2 report that we will exit Russia also, and that we are looking into different alternatives, how that can be done, but we will come back and present to you also. The Russian market was sourced from different factories within the groups, but it was from several factories, so there's no big impact for a single factory, except for the one that was built then in Moscow, which was just inaugurated, or about to be inaugurated when the war started. That was a little bit bad timing. In March 2023, we estimate to have 130 employees left in 10 regional sales offices. You could say that's about 50% of what it was a year ago. We also said in Q2 that we will do an impairment of the goodwill and building that was done of 168 million SEK. Talking a bit, jumping to investments and depreciations then, you can see it's quite cyclical. Ge rald talked a little bit about it already before also. We own most of our factories, as you know, have a booked value of SEK 1.4 billion in factory buildings. Sometimes we outgrow these factories, then we need to extend them. Last year we did so in Canada, Czech, and also Slovenia. We are about to do also extensions then in Lithuania and in Germany and also U.S. It will be another peak also after that. This year we project investments of around SEK 310 million. That's the budget for this year, with depreciations of SEK 274 million. This is my final slide about working capital then. Yeah, you're aware of the situation, I don't think we are unique than any other company in the industry either. We have seen quite an increase in inventory levels over the last year. There's of course one part of it which is a price impact that would correspond to half of the increase of our inventory increase. The other half then comes from increased safety stock of components due to the supply chain problems. Of course, this is not something that we want in the long run. It was necessary for a period to increase the safety stocks to be able to deliver. Also in some cases we took market shares from the competition. The problems have varied quite a lot. It has been everything from motors to controls to electric components to other things also. It's not over yet, but it's getting a bit better at least. We are working now with the bigger units, especially with focused action targets, and we think we can take it down soon again. You can see already now that the inventory has stopped increase and leveled out and starting to decrease, at least in the last month. There's improvements already now coming here. Net operating working capital is also part of the bonus scheme for our managing directors. They really have a driver to improve this as well. It was during the pandemic or, and also during supply chain problem at the period here, it has been more or less impossible to not increase the inventory. That was all from me. Okay. Is there any more question? Short question, otherwise we take it at the Q&A. Yeah. Sorry. Hi, Anders Knudsen from SEB. Just on the CapEx, where do you see the peak? You said 310 million SEK this year. Yeah. You see it going higher before it moves lower again? Sorry, is it? Is it going to move higher than that before moves down again? As you saw, it is a bit cyclical depending on when everything falls out there. I would say it could be a peak like the one we saw in last year, but right now there are also quite big delays, especially when it comes to production equipment. If you order something, when you get it, I mean, it could take a year or so. It depends, but building all these three and maybe four factory extensions at the same time, that could of course make a peak in this curve also. We will try to communicate the values and when they will occur really. EUR 310 million is the outlook for this year, this one actually. I don't have a forecast yet for the coming year, but we hope to keep it, you know, under control. I mean, these are happy or I mean, we are happy to do these investments because it means that we have too much volumes in these factories, and it's really nice investments to do as well. Thank you. Carl? Yeah. Roland. Okay. Just a quick question on your sort of margin bridge. I'm not sure if you're going to talk about it later on. If we come- Could you elaborate a bit more on, you mentioned that, manufacturing footprint optimization is one of the key measures in terms of lifting the margin. Is it predominantly the Menerga move from Germany to Maribor or do you have other plans? The short answer, that's a big part of it. All right. I think Gerald will come back more with the margin bridge in his presentation, so. Okay. Let's take it. If it's okay, we can come back and see if it's explained by the end of the day than on the Q&A session. All right, I suggest we take 15 minutes with coffee break served out there, and then we're back in here again to hear more. It's you, Gerald, will present. Janni. Janni. Okay. About growth initiatives. It will be interesting to hear. Thank you. Okay, ladies and gentlemen. I think we continue. Operational excellence and of course, its underlying main purpose, the focus on the profitability. When we talk about operational excellence in our manufacturing entities, of course, need to talk about our factories. Today, we operate our own factories in quite a lot of places as you know, and actually we are quite proud of that we own our properties with a total surface area of 320,000 square meters and a booked value of round about 1.4 billion SEK. As you heard in the sustainability part, that is something that is really close to us. One of the main purpose why we also have them, and also in the terms of that Anders touching when it comes to investments, when it comes to expansion, but also to be able to increase capacity for new products, but of course also for existing markets where we see that the growth makes us or puts us in a position where it's possible. It's good to have a factory that is well optimized, that is fit for fight, and we actually have under control and have well invested. That is something I think that you can see in every factory that you visit from Systemair, that we have a well-invested factory, highly optimized, and fit for purpose, where we of course also can influence the systems that we install in terms of ventilation, in working ambitions here, and also influence the energy consumption. All our building plants are designed and optimized to have a low energy use. For example, also in India, for example, we have rainwater harvesting, we have water and energy efficient installation, and we have on multiple facilities solar panels for energy installations. This you can only do and be prepared for if you own the properties. Of course, also, it is a, I would not say low-hanging fruit, but more tempting of course, having a strategic thought when looking at M&A candidates. Is it worth investing in M&A or to expand own capacities and take it from there? That is something that is dear to us and that we're always looking into, and that's why we need these highly invested factories. Looking at our operations and our strategy, we have five main areas that we are running and that we are looking for and we are setting our programs for. Starting with what has been discussed here several times already today, is to continuous optimize our factory and logistical footprint in order to increase both competence and of course, economy of scale. Secondly, to keep regional factory setups where, of course, they're justified by market demands. For example, when you talk about air handling units, the sheer size of a product makes it necessary to be rather close to your main markets, otherwise logistic costs will have a huge impact on your total market price. Implement lean manufacturing principles, and we have our own principles, SPM, the Systemair Production Model. In that, I will come back to that a little bit. We have defined our internal processes and KPIs, how to run factories and how to constantly look into them and to make them better step by step. We have a strategy where we're looking more into it to produce key components in-house. Why? Because of competitive needs, but also to, of course, here be in control of what is really important for the key areas of our offering. Increasing, constant increasing of the level of automatization and digitalization in our production processes. These are the five main areas that we are running. In the presentation following here, I would like to give you some example what that means actually in the different areas here. If we look at the first part where we talk about continuous optimize the factories, for us, the operational efficiency, and there was also a question raised earlier today, we have an internal efficiency project here with ongoing logistical review for Europe. What does it mean? Looking at the increase of cost, and competitiveness when it comes to logistic setups, freights, et cetera, we of course need to look into that. We, as you know, we have our setup. We have a logistics center here in Sweden and Germany, for example, for Europe, but we need to review and reassess how much and what to be on stock, what should be directly shipped, what is the, how to say, cutoff size for direct shipments, orders, et cetera. That is something that we are evaluating constantly. Looking at our manufacturing footprint, where to produce what, here, of course, reviewing multiple locations for optimized outcome. I think you had an earlier question here today, if it's only in Menerga. No, it's a constant thing that is ongoing, depending on volumes, products, but also closeness to main markets. Very important. Of course, is it possible or should we allow that similar or the same products to be produced at several sites? A good question, but should normally not be the case. Of course, when it comes here, Menerga is in focus for operational efficiency projects, and here is a main project ongoing. As communicated earlier in a quarterly report also, the Menerga main products is for pool, it's for commercial with highest efficiency on energy efficiency, and it's private pools. The private pool part has already been moved out to our existing factory in Maribor in Slovenia. There are other efficiency projects ongoing where it will be follow-up. The rest of the volumes also be transferred out or kept in a reshaped model. That is the main ongoing activity here for this part on operation efficiency. Covered here is of course also looking for common platforms, and I come back to that because it's a quite important one. It's footprint, where to be, what to do, and economy of scale. We're supporting geographical growth by presence, but also the setup and the way we support products, organizations, and sales. Of course, always have a look and invest in technology for future, and of course, under the light of sustainability. Looking at common platforms, and I think it has been already touched upon several times before, but looking at, as an example, our Geniox platform for our air handling units. It's actually the same platform as you see the casing over there at the wall. It's called the Geniox. When we did the Geniox project, we started with some European factories, and we made it to the first rollout to three factories. Meanwhile, this is a project five years old. The platform thinking has been expanded to what you heard earlier today about all the controls, the access platform, and also all the selection tools are now on the same platform. Before that, I can say that we had 16 different technical platforms and 23 different selection tools. Today, one platform, one selection tool. It's quite a difference. This has now been rolled out to all the factories that you can see on this chart. That makes quite a difference, of course. It's industrial platform thinking. Scalable, and of course, you have here and there some local dialects, but it's the same chassis, the same production model, the same process, the same machinery, the same setup in the background. That is synergy. I got the question earlier today in some of the discussions about systems. For us, it's very clear that when a customer talks about an installation of a ventilation system, what he can get from us is a product. He can get multiple products, but he needs to have a solution for his problem, which is in almost all cases, a system that is built upon several products that we need to connect. That's where he needs his help from us. We need to be able to connect different components of a ventilation installation to a system. We deliver the products, and we deliver the help on the digital side to connect them together in the best possible way for an efficient solution. At the end, for Systemair, what does it mean? When we talk about basic product range, standard products, that is to us, I would say, clear products that you have an article number, like a fan, a damper, a heater, or a residential air handling unit. To them, we manufacture and produce into stock. That's the simplest product that you can have. It's around about 40%-45% of our volume. When it comes to the platforms, the configured products, these are the ones that we're building on these platforms, on technical platforms. They are configured to order, but built on a scalable platform that you design in a selection tool. We talk about the customized products, like a car park ventilation or a Menerga or a marine unit, or like this one is a data center unit. A car park ventilation sounds very complicated. CFD simulations, it's a lot of fans, a lot of controls, but consists only of standard products that you connect together via our tools. These are then engineered to order because we have to make the CFD. At the end, what it means for us is that we are producing products, we are selling products, but we connect them on the control side and on the, say, competence behind the offering. We're a product company. To be able to produce that, of course, we need constantly to look into our factories, our setups. When we talk about our Systemair Production Model, we also talk about digitalization. What it covers in the Systemair Production Model is of course how we measure, how we build, and how we achieve quality in our products, in our operations, in our processes. It's this continuous improvements, reduction of lead times, standardized work, and environmental care. It's one step of that which might be simple and easy, but which is very crucial. We work a lot with digitalization in our own factories. The automatization of our factories also allows us of course to follow up. On top of that, we have a system internally, like an Axo system, where actually we can measure a lot of things. We can visualize a lot of things. We see, we can monitor bottlenecks. We can look at and understand downtime on machinery. We can increase the capacity, and we can check and trace stop times and measure the operational efficiency. Just as an example, an existing factory in Spain where we applied this system, just by re-looking into that and to look into the figures and the data, we identified another three working hours per day that we can move on that machine. We freed three working hours per day on machine. That's quite a lot. Just to show you a little bit of the possibility of having this digitalization in the manufacturing processes on automated machines. These are the things that we're working on constantly in the background. As an example also of other investments when it comes to, also investing in existing factories and be prepared for expansion or new technologies. Here is an example I want to mention, Recutech in Czech, in Pardubice. We acquired that factory in 2017. They made, at that time, they made the aluminum counterflow cores, and they had a production volume of around about 10,000-11,000 pieces in that, on a year. A little bit with our help, they introduced later on plastic heat exchanger based on a production line of one machine. At 2019 already the market increased that much by legislation and by the need of counter flow technology to achieve heat recovery in residential applications up to 90%. We saw an increase here that we got actually in 2019, we went up to round about 80,000 pieces a year. By that we went to be the largest producer of aluminum counter flow heat exchangers in the world. 2022, we inaugurated the need. We grew out of our factory, and we built a new one that is four times bigger than the old one. Here already in 2022 when we had the inauguration, we also added new product lines, new sizes, and today we're operating seven lines for these plastic exchangers because the volumes are increasing constantly. We are today actually the first production measuring 100% of all products that we produce for leakage, which is a quality assurance. We will also, this year, we will also start a production of the incorporated Lautner heat recovery wheels that we transferred from Germany to Czech also. We're closing 1 factory in Germany and put it in here also now from already in the end of the past year. By that, we have full control of the most important component in the energy recovery applications, the heat recovery course. Today, here in that factory, we're running volumes at around about 120,000 pieces a year. This is either acquiring or investing in existing. I think here it was absolutely the right decision to investing and building that volume on our own grounds. This factory here is fully optimized. We think what you measure and what you track is the things that you actually get done and get improved. We have a set of KPIs and things that we are of course measuring in all our entities in the manufacturing part. It's because we want to have a strong focus on the margin development to support our 10% targets. Also the production footprint is always under review, but if you don't measure and track, you don't know. It's a continued action on low-performing parts of our business, but of course also to develop the ones that are really good to be even better. We're looking for reduction of lead times, productivity improvements. We're looking at product cost focus, and here it's not only looking at value added or materials everyone would think, but also cost out, that you have a plan for cost out on an annual base on every single product that you have. The inventory review. Finished goods, but especially in these days, components. Absolutely. Sales and operation planning process, the tight connection with the sales and the marketing parts. The logistics review that already mentioned, and working with our internal project models, where we have the product platforms and our time to market processes. These are the things that we are tracking in our own operations on a daily basis, and it's really necessary and good to do. Okay. If no questions, I'm handing over to Jani for the part of continued growth. Oh, sorry. If- Yes. What's the difference in efficiency between the different factories in terms of range of percentage? I just repeat the question because it's also filmed here. What is the difference between the different factories in efficiency? Yeah. It is a little bit different also about the, what we produce in the different entities. I would say today, if you really want to compare like for like, let's look at air handling unit factories. At the beginning, when I started this platform thinking, it was rather different in the efficiencies. Today, as we are on the same platform, you can actually compare it, but we can also load balance between the factories. That's rather what we're looking for, and we're looking for main factories and assembly plants. The main factories being those really manufacturing everything from A- Z, and the other ones just making partial assembly. We're not really tracking the difference in between as the process are set the same. When it comes to other components, like for example, fans, on the actual fans, for example, it's not really comparable as the one factory would be in Malaysia and one in Germany. It's a little bit on that. We are, how to say, we're more selective where to put them. If they should be comparable, we need to put them on the same process, the same products. Today, on the air handling units, we have achieved that part. There's of course a goal in it. I agree on that. Okay? One more question. Yes. I mean, with the hyperinflation in some countries and then Swedish krona appreciating and it's lots of volatility, how do you sort of balance, you say, on competition of your factories all over? Do you shift or how do you deal with this kind of volatility? The, the real hy- Cost of inflation on The question was how we deal with hyperinflation and inflation as such and the different cost models in the different factories. Yeah. The real hyperinflation issue we only have in Turkey. The Turkish business as such, the main part of the business for us is export, but the main part is that we're selling in euro. By that, we are going out of the problem. It's the way of the local market in Turkey to, how to say, safeguard themselves from the issue of the hyperinflation, to make the deals in euro. The cheaper things get to buy now. I mean, the Swedish krona from. Yeah, yeah, it would be theoretically, but you're right. What we're of course, we also are tracking of course the man-hour cost in the different factories that we have. We have in the past, we have here and there, we have shifted products, taking them from other factories, for example, to Lithuania, we have taken them to Czech, to Maribor, as I mentioned also with Menerga. This is just when you see that there is a How to say, it needs to be a difference that actually overcomes the issue that I had that you need to be rather close to main markets with some of the key products that we have because of the sheer size of the project. It's a lot of different ingoing, how to say, arguments in that kind of decision. Just to say that the hyperinflation as such for Turkey is not the biggest problem for us. It is more a difficulty, I have to say, for the employees with salaries and everything. Okay. Janni? Thank you. Okay, finally my turn. I will try to speed up a bit because we're a bit behind the agenda. My focus will be on pretty much explaining why we believe that we will continue on the same nice growth curve as you saw, 100% from the last 25 years. I will start with a quite high level, and I believe you have seen much of this in other capital market stays and presentations, so I won't spend too much time, especially not on the mega trends, but these are really important for us as they truly shape the future of our industry. Based on the mega trends, we have identified five industry trends we believe will be especially important for us going forward, and where we also feel that we are well positioned to capture those trends. We have circular economy that Lee touched upon and also Roland a bit in the, in the operations presentation, which for us is a lot about taking a wider responsibility for the products we sell throughout its life cycle. Short term, for example, looking at the service business that I will come back to. We have the supply chain transparency trend, where we essentially believe and see that it's about doing the right things and also being able to be scrutinized for it. That this will not only be needed from a legislation perspective, but also demanded from customers going forward. Of course, this will also help us to deliver value in terms of adding transparency and traceability to the supply chain, which is something especially considering the last 2.5 or 1.5, one year with the challenges in the supply chain, is something really important to address. We have the HVAC industry consolidation, which of course is close to my heart to working with M&As. This is however not a pure financial driver or trend, which is about consolidating a fragmented market. We also see what Roland has touched upon numerous times that to, let's say, reach the maximum energy efficiency, you need to work with the wider landscape, and not only ventilation stand alone. You need to understand how the ventilation system works, but also how the ventilation system works in connection to heating and cooling. Of course, that's also valid for us to be successful in the future. Automation, I think is valid for any industry in terms of driving productivity. Humans are not super good at repetitive tasks, and of course, that can be automated. In our industry, we see a lot of this related to control systems and what Ralph presented earlier, that you can get a lot of efficiency gains from the software. Of course, then the software needs to operate with more softwares in a wider landscape, like the BMS system or the air control system and so on. That's again, part of what Ralph presented in how we approach control systems from our perspective, having an open API and being able to operate in a wider system landscape. Last one, regionalization. You have touched upon it in some of the questions. This is of course, close to our heart with our setup where we are close to the customers, partly for logistics reasons and not shipping things across the world, which are bulky and expensive, but also to meet regionally or regional customer demands. More and more, I think it's valid for more industries than ours that a customer wants something specific for them, and the needs will vary depending on which part of the world you're in. For us, it's very important to be close to the customer and make most of the decisions close to where the customers are at. That's also valid for our supply footprint. Trends are important, but at the end, they are also creating very strong drivers for our business. What we see now very favorable for us, I will come to a bit more of this going further. We have, for example, government's climate actions, which is a lot of government funding into programs to upgrade existing buildings that Lee and Anders touched upon, like the Green Deal. 35 million buildings need to be renovated, and of course, the HVAC system is part of that, creates a strong demand for the products we offer. We have the indoor air quality focus, which thanks to COVID, you could say, has really increased in awareness and importance at customers and also governments to improve this and the impact it has on our health and productivity. Digitalization is increasing the demand for data storage, which in turn is driving the global expansions of data centers. All of those data centers need reliable and energy-efficient HVAC systems to control the climate, to allow them to operate in a safe way. Lately, over the last year, this has been a real acceleration in converting fossil fuel-powered heating sources into alternative options. You saw examples from Tobias in how we address that in the residential segment with combining ventilation with heat pump solutions, also creating a really strong drive for the type of products we offer to the market. In terms of healthcare, as the economic prosperity rises, also the demand for modern healthcare increases. We have a very good position in the healthcare segment. Here, of course, as the facilities needs to be modernized, they also demand modern and fit for purpose HVAC solutions, both in renovation projects and new build projects of hospitals. Finally, we have touched upon it a couple of times, the smart buildings. It's increasing even more the complexity of buildings and not only buildings standalone, but complete cities in terms of how to talk to each other. This is a bit back to the control systems short term. How do we ensure that we can deliver units out of the factory with a fit for purpose and optimized control system? Really good and strong drivers for our business going forward as we see it. A lot of them supported by funding from governments in the end. I won't spend too much time on it, but this is something that you have heard us talk about, indoor air quality. This has really been accelerated because of COVID and the importance of it. Partly what we see now is that the focus on improving the indoor air quality in schools is really taking off. Also here we see dedicated programs from governments like in Belgium, Netherlands, Germany to start to renovate old schools and also in the new schools that are being built to put in efficient and reliable HVAC system. Here we are also very well positioned to capture this growth through, among others, our recent Lautner Sense unit, which is specifically good for renovation projects where you have a unit in each classroom. You don't have to rebuild the complete HVAC system. Also a strong position in Canada. Of course, this is no different from work. Good ventilation allows us to be more productive at work in the same way as children will learn better and stay attentive longer in schools if the ventilation is good. Strong drivers for the market. What do we then see for the actual underlying market? Well, we believe it's, of course, ups and downs. You saw the 25-year growth curve. It's also ups and downs in Systemair's growth curve, even though I must say the downs have been quite few and not so much. We see that there will be a solid underlying market growth also the coming years for the ventilation industry, of course. It starts off with the construction market, which is essentially the market driving the HVAC market, albeit we have a delay from new build to HVAC installation, since that's not the first thing you do in a building. We picked here the European construction market, partly because that's around 75%-80% of our sales is in Europe, also because it's the latest updated numbers we have gotten our hands on. It has been revised slightly downwards lately, of course. What we see now is that the European construction market will grow around 4% per year, CAGR, the coming years. Of course, that doesn't mean 4% every year. Adding the positive, for example, the positive drivers and the legislations on climate change, all these government-funded programs, as an example, we forecast that the global HVAC market will grow slightly above the construction market in the coming years. For us then, what does that mean? In our estimated addressable market, we have a 5% market share. We believe that there is still a solid underlying market growth the coming years. Again, there will be ups and downs. I would be probably naive to say that there won't be any downs talking today with the rising inflation and interest rates, which is putting construction work on hold. The good thing, and why we also believe we are able, have been able, and will continue to be able to mitigate some of these ups and downs, is partly what Anders mentioned with having a very diverse customer base and also a diverse market presence. We also see that we have a well-balanced position between new build and renovation in our business. We have a very strong position in the renovation market, which has allowed us to historically at least been able to mitigate some of the downturn in new build with increasing in renovation instead. We have our standard products in range or in stock that Roland mentioned, which allows for quick access. If you need to replace a fan or something, you can get it quickly. We also have dedicated products for renovation, like our Geniox air handling units, where you can knock it down, get it through the door, and then assemble it instead of tearing down the whole wall in an existing building to fit it in. Also footprint-wise to take as little footprint as possible. As mentioned, we have a diversified customer base since many years, which has helped us to deliver quite stable growth even in downturns or stable development even in downturns. We make it easy for the customer to deal with us throughout this, through our web shop and site support, for example, in renovation projects. All in all, very favorable trends for our industry, very strong drivers for our business, not only the trends, but also, let's say, money behind the trends to really incentivize landlords, building owners, new construction to focus on improving the energy efficiency in the buildings. Based on that, a solid underlying market growth is what we see going forward with ups and downs, of course. We are of course not satisfied with growing in line with the market. We haven't in the past, and we intend to grow faster. We have outgrown the market in the past, and we intend to do the same going forward. To support that, we have identified five selected growth opportunities, and we have talked a lot about these throughout the day, some of them at least. I won't spend too much time on going through each and every one of them, and I will dig deeper into 3 of them just in a bit. We have the residential market, where again, we see very good growth potential for us. We are well-positioned, have a strong product offering in place to capture that market and the increased focus on both the ventilation as such and having a balanced ventilation, but also the combination of ventilation and heat pumps, so that you have the heating and cooling sources and the ventilation working together in the house. We have the public buildings and especially schools. As mentioned, we have a very strong offer and also a strong position in this segment. This is quite close to our core business of comfort ventilation. We have both the sort of single classroom units in a sense, but we also have more centralized ventilation for new projects in this space. In the healthcare segment, also an area we believe will grow stronger or more in the future. Here we also have the addition of SagiCofim recently, which has allowed us to complement our offer in a good way, where we have the airflow part, the air distribution part through air handling units and so on. SagiCofim adds the filtration part to get really clean air. Data centers, I don't think anyone has missed out on that, and that it's a rapidly growing segment. We have been in that segment for quite some years now and established a good presence and also a good model, where we base our offer on our standardized platforms of air handling units, so we can produce it with efficiency in our existing air handling unit factories. We also target, say, small to mid-size projects to minimize the risk of these larger projects, where you have both, quite long times from order to delivery, which puts a risk on how you manage prices versus cost and so on. We have found our niche or found our position in that in a good way. We recently inaugurated a state-of-the-art test facility in Turkey to allow or to provide further support to our customers. Here we also foresee that we will grow significantly above group average in this segment, in the underlying market. The final part, tying back a bit to circularity then, and renovation for that matter, but essentially the after-market sales or after-market service part of the business. This is also an area where we don't want to compete with our customers, the installers, so it's a selective area how we approach it. It's of course an area where we see potential for further growth and also a necessity to have this in our offer going forward. Residential, we have talked a lot about that. But as you can understand, it is a very important segment for us, growth-wise, if nothing else. Today, it's about SEK 1 billion of annual sales estimated in that segment, but we expect to be able to grow this significantly above group average in the coming years. Part of that is our focus, that we are going from, say, more of a ventilation product sales, where you sell just the product, to more of a solution sales, where you have the surrounding part as well, where the heat recovery system is the core or the heart of our offer. We sell the complete package with everything around. Also, as Roland mentioned, how it, how everything fits together and the knowledge behind that. We have vast experience and a really strong position. Norway is one example where we are very strong in residential. North Europe, North America, we are strong. We think we can use this to increase our focus on the combined ventilation heat pump solutions that you also saw from Tobias to leverage that and grow even further. This is also one of the areas where we have a dedicated acquisition strategy or approach. This is one of the areas where we actively are looking for acquisitions to strengthen our offer and mainly then to add the capability to penetrate more sub-segments or niches of this market. Could be, for example, a more dedicated approach to multi-dwellings, where today we are stronger in single-family houses rather than the multi-dwellings. It could be a product offer for entry-level to balanced ventilation without the heat recovery, as an example, but just to widen our penetration of the residential segment. Selective acquisitions in this area is something we are looking for. We have talked a lot about heat pumps. We have also talked a lot about Panasonic and the intended divestment of our AC business. One might wonder, well, if you have the AC business, you probably have knowledge about refrigerants and very simplified, reverse the AC, and you have a heat pump, more or less. The positioning of our AC business is more towards commercial or heavy commercial applications with quite big units. By divesting this, we will be able to increase our focus on the smaller units needed for the residential segment, as an example. As already explained, we have the long-term supply agreement in place, which means that we will have access to these products also going forward without necessarily producing them or developing them. Could be good to add here in terms of revenues that, I mean, the majority of what we intend to divest is sold through the units we are divesting. That sales goes to Panasonic. A portion of the sales goes through other Systemair companies, and that's what we are keeping, so to say. The 7% that Anders showed is taking that into account. It's not like we are selling all the revenues but continue to generate it for Panasonic. It's a portion of that that we will continue to generate going forward. We see this as a really good move in terms of focusing a bit more on our core business, ventilation, and also strengthening our position in the residential to free up focus and efforts into that segment. Healthcare is also one of the areas to highlight a bit more, and also one of the areas we have touched upon. There is a growing demand for modern healthcare around the world. It gives reason for building new hospitals, but also renovating existing hospitals. We have already, before the Subject Coffee acquisition, we had a very strong position in this part of the business. Partly here, it's important to have a strong brand to build trust because these type of customers don't want to take any risks, of course. We have a vast experience in supplying to both new-built hospital projects as well as renovation with dedicated offers. Then as mentioned as with the addition of Subject Coffee, we are really complementing our offer into the healthcare segment by adding the high-tech filtration part, as an example, and also some specific air distribution products that I will show you in one slide. This is today a relatively small segment for us, around SEK 350 million in sales year-over-year, but this is also one of the segments where we see that we can grow significantly above the group average or underlying market growth. Just briefly touching upon SagiCofim and why that's a very good addition to the healthcare part of our business. Healthcare is not all of the business of SagiCofim, but it's a part of it. They mainly have two parts that are really interesting to us here. It's the upper left part, which is a ceiling filtration solution which allows the patient to not be contaminated while still allowing the surgeon to work in a comfortable way. It's pressing down the air, the filtrated air, pushing all the materials away from the floor. The second part is specialist wards, that's for patients with a lowered immune system, where you have a horizontal airflow filtrated. Then the doctor or the surgeon is standing downstream of the patient, assuring that no, none of the bacteria or particles from the doctor hits the patient, which allows them to work in a safe way, also with comfort, not standing in like a draft, in that sense. This is really complementing what we already have, we strengthen our position in the healthcare segment, we expect to be able to leverage SagiCofim and grow the sales of SagiCofim products through the Systemair units around the world in a very good way. Finally, service business is also one of the areas where we expect to generate significant growth in the coming year. This is not really a new business to Systemair. It has been done in selected group companies in the past. What we are doing now is essentially that we are scaling what has been done successfully to more Systemair companies. Again, in a selective way, because we don't want to compete with the installation companies, which in the end are our customers. Our main business is to sell products. More and more, there are demands from customers and wishes, and also from installation companies, that we offer after-market support and service for our products, which in the long run means that we also touch upon other products. Here we have had an approach of first assuring we know what we are doing and that we can measure it. We have created transparency in terms of creating a separate profit and loss statement for the service business, both consolidated, but also for each legal entity, the service business they have within their entity. We stabilize the local service organizations, assigning clear accountability so that someone owns the service business, and also increasing the visibility of the service organization in that region. Luckily, we're a group with a lot of common infrastructure that we can leverage in these type of situations. We have, for example, ERP and CRM in common that we have adapted to fit the service business so that we use the same thing everywhere, not paying double for things. It could be, I mean, simple CRM management in the service business or recently launched spare parts portal, making it easy to find the correct spare part for your unit. We're trying to leverage the strengths of being a group, the common framework, both for the offering and infrastructure, at the same time as this is done selectively on the market where we see that there's potential for service. This is also one of the areas where we have a selective acquisition agenda. It doesn't mean that we want to consolidate and become a new Bravida or Instalco or something like that. Here we are looking for companies that really add something to our existing business in that country. It could be competence, customer presence, or similar. A selective approach to acquisitions in the service segment is what we are looking at here. Today, it's representing or generating approximately SEK 400 million of annual sales, and our ambition is to grow that by double-digits, quite clear double-digits, until 2025, 2026 year-over-year, and go from a slightly dilutive EBIT margin to a slightly, even more than that, positively accretive contribution to the group EBIT margin. One of the selective growth areas. I think I managed to speed up now. It means we are heading into a break. Before that, just to summarize why we believe we will be able to continue to generate this nice 25 growth curve also in the future, year-over-year. First of all, we have very beneficial trends that are valid for all of course. In our case, they also create very strong drivers funded by governments and organizations in a good way. We do believe we have a solid underlying market growth. We are confident we can outperform that market growth among others by focusing on these selective growth opportunities going forward. Good. It's a five minutes break in the schedule. No. No. We are a little bit behind schedule now. I thought we will speed up. Otherwise it's gonna be rather late. It's snowing. It might be that you then want to hit the road later. Yeah. I keep the tension, I keep you sitting. Yeah. Okay? Coming to the last chapter, which is a little bit try to tying it together, but also of course, following up what has happened since our last capital markets day. This is actually what was presented during our last capital markets day. It was our bridge from where we were at that stage in September 2019 as at an EBIT level of 6.3%, looking at how to come to 10%. The steps in this wonderful diagram was on IT and AHU casing platform. There was some pricing and margin focus. There was the manufacturing efficiency at Menerga AC factories. Looking on where we are on that. Following it up, technical platforms. I think you have meanwhile you all understand, and I'm happy for that, what a Geniox unit is. That platform is something that we rolled out, which is under constant, of course, development, but also that we do the same on the control side and other products to follow, where we see that the platform thinking actually gives us synergies that are wishful just because we set them up in different factories to have it on the same level. That we see is done on the process. Manufacturing efficiency, cost control, and footprint, as also explained in the presentation I had before. That is something that is really important that we're driving. With more focus, as we also have changed organization to really keep that driving and developing all the time. Here, of course, we have been holding back a little bit, or we have been held back because a big part of that or to be optimized in your manufacturing is also to have the components to manufacture. We have been suffering a little bit in efficiency here over the last one and a half years, but it is of course something that is a little bit out of our reach, but we're working with it constantly. As Anders also explained in his financial review, we also see a trend changing here now, which is really good, which will be beneficial for that. The other part, pricing and margin focus. Here also, as you also understand from the change in management, Janni is heading up our pricing part, where we have not only put up a thorough system and a process, but we also have people working only with that, following up market pricing, cost out in efficiency in the operations. It's really something different than it was before, especially in very smaller entities, but really a market pricing is something different than a cost-plus pricing. That is something that we also see a clear good development, which has helped us a lot throughout the pandemic with the forever ongoing increase of material costs and everything coming into our operations. Sorry. We also had one part where we were moving from big projects to profitable projects. That is something that we have been working on. It was very simple and fast to change. It is more working with the sales units and sales entities and to reward rather mid-sized or smaller projects where you achieve good margins instead of having all the nice size, having a multiple million units order where you're happy that you won it against your competition just on price. That is not so good. We don't want that. It's more about having a good profitability and a nice project. That is working here also. The takeaway that why it's yellow is that due to the component shortage, the development on the market for the last year, as also mentioned earlier today, delivery beats pricing. As long as we had safety stock, and we took some of the cost, we took some components, we could also charge more. Of course, it has some impact. It's not the real development. We normally have a process in place where we review the normal market pricing up to three times a year. In the last 1.5 years, it has been up to five, I think in two countries, even six times a year, where we have adjusted market pricing. It's a process that is just now due to how the market is reacting. If it wouldn't have been in place, it would have been not so good for us. We had the two issues of Menerga and the AC companies. Menerga has explained a lot of things ongoing here, we will see the movements and everything having its effect. The AC factors, of course, with the divestment of the A-AC factories, there's a green one. I also have to mention that in the first two quarters this year, we saw all the benefits of the restriction that has been done. We even had quarters in the AC units that had an EBIT level of 10%. Just to say that that was really turning out really nice. This is what we wanted to achieve. Of course, on top of that, as Anders also pointed out, of course, here is then comparing to where we were one year ago. Russia is not included in that anymore. The Ukrainian war has put a lid on it. A little bit of things that have, of course, also had its impact. We believe in the 10% and even better that we believe to exceed the 10%. To exceed that, what are we doing? What are we focusing from here on? We maintain the technical platform thinking because we even think it's been proven internally and how it's developing over the last couple of years. That's the way that we need to go. We continue with that. Manufacturing efficiency, of course, is ongoing, never-ending project that you need to just be better and better every day. On the right side, as also mentioned by Janni, for us, very, very important to, on top of the normal market development, to start up organic growth initiatives. Here, our focus for the, for the going forward is the selected areas. Here, looking at residential, looking at the public buildings, healthcare, especially after the acquisition of SagiCofim, where we have the operation theaters possibilities and all the healthcare and intensive care units, and of course, then also the data centers and service. That is one area. Then, as you see throughout the change of our management, also the Group Management, there is more focus on Global Supply Chain and M&A. We have refocused our setup and our process and how we're organizing ourselves to move on from here and to really achieve this step-by-step, better and better every day in everything we do. Then, of course, also on the focused M&A activities. Making it clear with bringing M&A as an own chapter, as an own organization within our organization, supporting a profitable growth, looking for the right candidates that are actually adding value directly from start to our company. This is how we're moving from here. Looking at the strategic focus and what are the areas in supporting these initiatives. We call it our enablers, what is actually allowing us moving in the right direction. For us, the strategic enablers is to develop people and strong relations, attractive offer built on standardization. It is efficient business setup with continuous improvement, sustainable and future-proof business, a strong position benefiting for structural growth. I will move into that and explain a little bit what is behind it. With those enablers, that's how we fulfill our financial targets to achieve the profitability that will be above 10%. That's what we need to achieve. That's our target. Of course, never forget our core values, our corporate culture, because without having them on board and developing them further together with all our employees and all organizations, it would not be possible. Looking at the enablers as they are the key to success for us to develop people and strong relations, we need and we want to be an attractive employer with an inclusive corporate culture. We have, for example, today here in Skinnskatteberg, in excess of 30 different nationalities working in our company, and not only taking into account, of course, for customer support and everything, but also in manufacturing. This actually is enriching the competence, but also the behavior and the culture in the company every day. Believing in entrepreneurial drive and developing strong capabilities. I mean, this company is, of course, founded by an entrepreneur, and we are having a lucky position as many of our acquired companies were actually acquired from entrepreneurs and further on driven on entrepreneurial style. I think that is something that we have throughout the whole Systemair Group, which makes that you have underlying always a thrive for to be better and move on and move forward. It's a good spirit to have and to keep. Building strong relations and partnerships based on expertise and trust, which is also, as I said before, part of our corporate culture. Of course, that all the attractive offers should be built on standardization. I explained the platforms and how we think standardized product and product offering. Maintaining attractive offer with a broad range of quality products on a standardized platforms, providing most energy efficient product solutions, improving indoor air quality. We still talk about one of the most precious things that we have in life, the air that we breathe. That's what we're treating, that what we're tempering, filtering. We think we're in the right business to really make a difference and to move forward. Of course, enabling connected solutions and enhancing the user experience through smart solutions. You heard the presentation from Ralph and also other points here throughout the presentations. We also believe in efficient business set up with continuous improvement, and of course, profiting from economy of scale through efficient operations supply chain. Here, of course, our set up regional and over the world internationally helps us a lot. Evolving through efficient product and development with standardization as a guiding principle. Also mentioned before, for me, especially when it comes to standardized products is really important for us. That's the possibility we have with our technical centers like this, with a standardized and fully optimized production. That's where we can really develop that to fullest extent. Prioritizing strong local sales presence, common processes, agility, and decentralized decision-making. Having these processes as standard together with the CRM, ERP tools, then you can actually also live with the decentralized decision-making and create a successful business. Sustainable and future-proof business. We think that the forward-looking, improving the circularity and the carbon footprint of our products is something actually contributing, of course, to 2030, 2050 goals, is totally in line with the current development in the world. Growing the service business will also here ensure sustainability throughout the product's life cycle, also enabling not only that we can actually make upgrades, we can also make service, we can also replace or help our customer for recycle. Then we really have the circularity. Safeguarding responsible business through sustainable and, first of all, long-term decisions. I think that is something that really, where Systemair stands out. We're not thinking short term. We really believe in thinking mid and long term is what secures and builds the business on a stable base for future. The last one, the lucky part that we really believe in, that we have a strong position benefiting from the structural growth that you see in the background. You have seen the slides on the right side, but leveraging our different brands that we have with Systemair as the main brand gives us a strength to not only be in the ventilation distribution and installation market, also with, attritions with the Frico brand, and so on. We're really touching about different applications in different areas. Maintaining resilience and growth through the global and diversified customer base, as you heard also from Jan and others before. Today, selling into 135 countries all around the world, I see that as a strength. Profitable growth through organic investments and an active acquisition agenda. Looking into investing in our existing highly optimized factories or an add-on acquisition that makes sense for strategic growth and development of a company, it's a good thing to be part of that. We believe in these growth opportunities that we are looking into. That all leads us to this picture, and on top of that for us, the takeaway is then to create better air every day and worldwide. That is what Systemair can do and develop it from here. By that, I would say thank you. I've tried to speed it up a little bit in the end because I know you have been sitting for quite a long time.