Good morning, and welcome to Altra's 2022 Investor Day. I'm Craig Schuele, Vice President of Marketing and Business Development. Before we get started, I'd like to have you acknowledge our safe harbor statement and remind you that we intend to make forward-looking statements during the course of today's events, which contain inherent risks and uncertainties, which are detailed in our SEC filings. We're really excited to have you here today, and to review and provide some details on how we intend to unlock Altra's full potential as a premier industrial company. We're gonna start off the day with Carl, and he's gonna give us a presentation on where Altra is today, and more importantly, where we're heading in the future and how we get there. We'll then ask our leadership team to come up and talk a little bit about the evolution of the Altra Business System, and then provide some details of how we're using ABS to drive performance in leadership and growth tools and organic growth and lean discipline. We'll then have a chance to talk a little bit about disciplined M&A, and how we're using M&A to drive growth within Altra. Then finally, Todd will wrap it up with a look at the financials. During the course of the presentation, and particularly after the event is done, we've set some time up for Q&A. We would ask those here that are live with us today at the Nasdaq MarketSite to raise your hand if you have a question, and we'll bring a microphone over to you. Those that are attending virtually, please use the chat function on the webcast. We've got a lot to cover today, so, without further delay, let me turn it over to Carl Christenson, Altra's Chairman and CEO. All right. Thank you, Craig, and thanks everyone for joining us today and attending in person. It feels really good to be here in person and face-to-face and not have masks on and realize that everybody is in two dimensions, we're actually three-dimensional human beings. Also welcome those people that are on the webcast and joined us via the two-dimensional world. As Craig said, I'm Carl Christenson, I'm the Chairman and CEO of the company. I've been with the business for almost 18 years, when we first formed the company back at the end of 2004, and I've been the CEO since 2009, about 14 years. My goal for today is for everybody watching this and attending this presentation to get a really good idea of how vast the opportunities are for our company, and that our real challenge is how do we manage those opportunities and prioritize them. Secondly, that we have a really great team that's fully capable of executing on the strategy and taking care of those or taking advantage of those opportunities. We've established Altra as one of the clear leaders in the power transmission and motion control space. Over the last few years, we've developed processes to drive growth, improve margin, and that's resulted in exceptional cash flow. Now we're beginning to move the company up the technology pyramid, and we'll talk a little bit about what we mean by the technology pyramid as we get further into the presentation. My aspiration for Altra is that we will be recognized as a premier technology company. That's the goal over the next several years. When I look back in time to when we first formed Altra, I'm extremely proud of the team's ability to develop a strategy and then execute that strategy and the transformation that's taken to date. Some of you have followed us since the beginning of the company, and we've grown from $350 million in revenues to nearly $2 billion in revenues. If you look at the business processes that we have today and the team that we have in place, you know, it is a really solid company compared to the essentially startup company we were back in 2004, 2005. We've built strong, defensible market positions in, I think, a really sustainable competitive advantage. We have demonstrated the ability to generate exceptional cash flow in good times and in bad times. When we went through the financial crisis, I think people bailed out on us and thought that we wouldn't be able to manage through it. We generated more cash during the financial crisis than we did prior to. I think we've demonstrated that we can manage through the cycle. I'm even more excited about where we're going. Those accomplishments back from where we've been were all great, but where we're going, I think is really exciting. We have the opportunity, I think, to utilize the business system that we've adopted, some best practices from the acquisition that we made or the merger with the A&S businesses, which were spun out of Danaher, and combine that with what we've been doing, to build our own business system as Altra. That'll enable us to continue to drive exceptional growth, continue to expand the margins, and then we're gonna deploy that capital into new opportunities, utilize the business system to drive improvements in those new opportunities, whether they're organic or through acquisition. Then we'll repeat the process, and we're gonna create a perpetual flywheel for value creation. That's the thing that really excites me when I look at the tools and capabilities and people that we have, and how we can create that. I'm gonna call it a perpetual flywheel going forward. Today, you're gonna learn about some of the keys and how we're gonna do some of that. I said that we have a great team. This is the team that we have today. If you look on the right-hand side, we have the operational leaders, and the operational leaders are responsible for creating, developing, and then deploying the strategy for the businesses. Then on the left-hand side are the functional managers, and those managers are responsible for wherever we think we can get leverage from scale. Then we manage those activities at a higher level and deploy them across the businesses. That would be tax management. The businesses don't need to be involved in tax management. HR, the ABS system, we can leverage that across the whole company. There's several areas that we leverage. Supply chain is one. Been tremendously effective as we've leveraged that across the company. If you look down on the bottom, you look at some of the places where the management team has worked, and they are some really fine companies with really good systems in place. We've got a very experienced management team that's brought to Altra some great backgrounds and experiences. We've also refreshed the board, and my intention was to align the skill sets and the experiences of the people that we brought onto the board with a new direction for Altra. We were transforming the company, and I believed that we needed to transform the board of directors also. When I look at the backgrounds and experiences of the people that we've added to the board, they are a really distinguished group. They are very helpful. They're all very active on the board. They love the company, love what we're doing, and they bring their experience and guidance to us. I'm really, really pleased with the changes that we've made over the last couple of years. You probably recognize some of those faces up there. Now I'm gonna shift gears a little bit, no pun intended, and get into some of the details about the company. This is a quick snapshot of the company. In 2021 was a difficult macro environment, but we were able to achieve record sales. We achieved sales of $1.9 billion. We have 9,600 employees around the world, 49 manufacturing locations. One of the best things, one of the things I love most about the company are the brand names that we have and how those brand names are recognized in the markets that we serve for exceptional support, exceptional product quality, and really exceptional innovation in the products that we design and bring to the marketplace. We have about 50% of our revenues are in North America, 30% in Europe, and 20% the rest of the world. That 20%, the majority of that is in China, but we have some opportunities to grow geographically. I estimate that we have about 75% of our business is new build applications and about 25% is recurring aftermarket sales. We operate the company in two segments. Back in 2018, we merged with the A&S businesses that were spun out of Fortive, historically part of Danaher. They were about the same size, so we doubled the size of the company overnight on October 1, I think it was October 1, 2018. We kept those. The A&S businesses are separate from the PTT businesses, which is the historical Altra, and we report in those two segments. We are hyper-focused on the power transmission motion control space. You see a lot of companies our size, and they're somewhat diversified. We are not. We're extremely focused on what we do, and I think that's very healthy. If you want diversification, you can go invest in two or three different companies. You don't need us to try to figure that out and try to figure out how to manage multiple businesses. When you think about us, think about power transmission motion control. As I said before, all the businesses go to market in a very similar fashion, and we have a common mission statement, and that is through collaborative innovation, we unlock the potential of our customers and each other. We live and breathe that every day. We also have common core values. If you're gonna be part of Altra, you've got to live by those core values. First one is that we're stronger working as a team, than not as individual performers, but as a team, and you've got to collaborate with people that are on your team and your customers. We work with customers on their most difficult problems and developing innovative solutions, and that enables us to create a sustainable competitive advantage. We really believe that if we can get in and help the customer with their most difficult problems that some competitors walk away from, then we win. We also believe that it's essential to have highly effective, qualified leadership. Al's gonna go into... Al Mason is gonna go into a little bit about the training that we've developed because we couldn't find anything external to develop leaders. We developed our own programs internally to train and develop leadership. We strive to continuously improve all aspects of the business. There isn't one part of the business that's immune from us coming in and trying to figure out how to do it better, eliminate waste, and reduce lead time and cycle time through the business. We must create value for all of our stakeholders. Everybody that has an interest in the company, we work really hard to create value for those stakeholders. ABS is really the key to all that we do at Altra, from developing the strategy and the actions that we're gonna go deploy to implement that strategy to the daily management of the work that we do within the company. We still have work to do. We still have a lot of work to do regarding ABS, and I think that's a huge opportunity for us. The improvements that we've made are super impressive, and I think you're gonna see some of that today as we walk through the detailed presentations. I hope after today, you'll gain an appreciation for why I believe that what we're doing is somewhat exceptional and unique, somewhat unique and exceptional, that it's highly effective, and that it's really the key to outsized returns. It's hard to go a day without hearing the term ESG. I'm almost sick of hearing it. It's ubiquitous. It's like it was invented a couple years ago, that all of a sudden somebody came up with ESG and that it was something that was brand new. As a company, we've been involved with lots of the aspects of ESG for years and years. Safety, zero discharge, energy efficiency, ethical behavior, those aren't things we just started working on because somebody said, "Hey, you need to think about ESG." Those are things we've been working on forever. There are some areas that I recognize that we've got some opportunity to improve in, and one of them was DE&I. As we started digging, and I started learning and exploring down in the organization, DE&I realized that there's a huge opportunity for us to do a better job in that area. We already do some of it really well. I'm very excited that in the very, very near future, we're gonna issue our first CSR report. I think you'll get some understanding of all the things that we are doing and have been doing. What we did first was we did a materiality assessment and determined where are the areas that are gonna be most impactful to the company, have the biggest impact on the company, and provide the best impact for all of our stakeholders. We're prioritizing our activities on those. Rather than just a check-the-box exercise for the shareholder services groups, we're actually looking at what's gonna benefit the company. I'm really excited to get that CSR report published. Now I'm gonna shift gears again and talk about the progress that we're making towards our transformation. We've made a huge step in that transformation in 2018 when we merged with the A&S businesses and virtually doubled the size of the company. I think about some of the things that we got as a result of that merger, that had been developed through Fortive and through Danaher, by merging with the A&S businesses. It's been tremendous. The integration was done, is essentially done, and it went really, really well. I attribute that to the fact that I think the cultures of the two businesses were very similar. Both businesses go to market the same way. Both businesses had a continuous improvement culture. It went really, really well. We've done what we said we were gonna do. The synergies were well executed, and we're starting to see the results of those synergies. We have been seeing the results of those synergies. We've had really good free cash flow, and we've been able to pay down the debt that we said we were gonna pay down when we laid out the projections of how much debt we'd be able to pay down over what timeframe. Even in the pandemic, we were able to achieve those goals. We're currently just under 3 times net debt to EBITDA. Being a larger company also enabled us to start to look at the portfolio and what is an Altra-like company, what's not an Altra-like company, what should fit into the portfolio and what doesn't. When we were smaller, it was hard to say, we're gonna shed some revenues. We've been able to look at what should be in the portfolio and what shouldn't. The business processes I mentioned earlier, but the processes that we obtained and are utilizing have really been instrumental in driving growth and in improving the margins. Now I think we're poised, and over the next couple years, we're gonna demonstrate why we deserve the recognition as truly a premier company. We've got some work to do, but we are going to get there. The macro environment has been, you know, very challenging with the pandemic, the supply chain issues we faced, the labor shortages in some geographic regions. We were, you know, again, able to achieve record revenues. The operating margins are in the really solid mid-teens%. We're very proud of the results we've been able to achieve. Impressively, we've been able to generate $720 million worth of free cash flow over the last 4 years. After we close the deal to sell the JVS business, you know, our leverage ratio will be approximately 2x net debt to EBITDA. We're gonna have a really solid balance sheet by the time we get that closed. When we get it closed. Another aspect of the transformation is that we now have an expanded position in higher growth end markets. More than 50% of the revenues are in the markets shown here. If you add in what we do through distribution in these markets, you know, it's a substantial portion of our revenues are now in what we perceive as very, very good growth end markets. A key to our growth will be to continue to expand into these higher growth end markets. Our job and challenge is to go find those applications and those customers where we can continue to grow the business in these end markets. Also, we're gonna find acquisitions that would help us increase our position in these markets. You're gonna see some great examples of how we're doing that later in the presentation. As I said, all of our businesses have a common approach to the market. We win when we help our customers with their most difficult applications and problems, and help them solve those problems. We strive to find applications where we can provide mission-critical components and where the switching cost is high, and then that creates a very sticky relationship with the customer. Most of our relationships with our customers are really sticky. We spend a great deal of time in planning and identifying which markets do we wanna be in, within those markets, which applications, and then who are the potential customers that make the equipment that are in those applications. We're gonna stay focused on those markets where there's good secular trends, and that, in my mind, will help us continue to drive that sustainable competitive advantage I mentioned. Now I'm gonna shift gears, I think for the last time we're shifting. You know, we believe that the business system that we're adopting and developing, we will continue to develop the business system, and it will enable us to drive organic growth and margin expansion. In addition, we believe the M&A process we're developing and the cash flow that we generate is gonna position us to grow inorganically. The PTMC market, the power transmission motion control market, is still very fragmented. There's still thousands of companies, you know, anywhere from $10 million a year in revenues to hundreds of millions of dollars in revenues. We believe that there will be ample opportunities for us to continue our M&A strategy. By deploying capital that we generate wisely, if we deploy that wisely into good, smart acquisitions and organic growth activities, and then we drive the improvements into those opportunities, so that we can realize the synergies that we've identified, we should be able to create exceptional returns and create that perpetual flywheel that I referenced earlier. Combined with organic and inorganic growth, we believe that that will enable us to grow the business by 2027 to be a $3 billion revenue company. We've done a tremendous amount of work developing the capabilities to grow profitably. Again, achieving the organic growth is imperative. Later today, you'll see some of the systematic processes we have developed to drive that organic growth. We're also fully committed to ensuring our businesses and acquisition candidates are Altra-like. We have developed a portfolio management that Craig is gonna talk about, the portfolio management framework, and you'll be exposed to that later today. Finally, you'll learn about some of the margin expansion activities that we're working on. The combined effects of this work should enable us to achieve those long-term goals. I'll talk about those. We believe that our disciplined approach will enable us to achieve approximately 3%-5% annual organic growth. Our ability to identify the higher growth end markets and the opportunities where we can win in those markets, and then utilizing the ABS tools, and that gives me the confidence that we'll be able to achieve this goal. Now I wanna dive a little deeper into some of the secular trends that we believe will help drive our growth. They include digitization and automation, expanding an aging population, and sustainability. Then within those three areas, there's multiple end markets that we participate in today, that will help us take advantage of these and exploit these trends. First of all, digitization and automation. We're seeing a real acceleration in digitization and automation, and I think there's several reasons for that. One is the need for process monitoring and control, the need for predictive maintenance, the availability of skilled labor, or I should say the lack of availability of skilled labor, and then the need to reduce the length of supply chain as we've gone through the pandemic. I think people have said, "I need my supply chain to be closer. I need to have shorter cycle times." Automation is one way to get there. I've been doing this a long time, and I said, "What are the keys of why is automation gonna work better than it has in the past, and why are we able to digitize things today that we've had struggled with in the past?" In my mind, it's because of the speed of processors today and all the work that's been done with software. It's actually violating my two cubed rule. My two cubed rule was anybody came into me and said, "I wanna automate this process, I wanna buy some software," I'd say, "Don't forget that it's only gonna do half of whatever those guys are promising you it's gonna do. It's gonna take twice as long to implement, and it's gonna cost you twice as much as they tell you it's gonna cost." Today, that's not true anymore. I have to abandon my 2 cubed rule. I gotta come up with a new way to push back on somebody that wants to spend money. I didn't think I'd see that in my lifetime. Today, some of the things you're gonna see we're doing on the shop floor and some of the things that we're gonna be capable of doing with our products makes it absolutely essential that we participate in this digitization and automation world. I'm super excited about it. I'm not excited about giving up on my 2 cubed rule. The next thing is, if we look at the what we call the pyramid, the technology pyramid. Well, what is that? I think this one, there's a whole bunch of them. If you go out on the internet, you can Google technology pyramids, and you'll end up with thousands of them. I kinda like this one. The lowest level is where you provide components. The next level is where you provide PLCs and some controllers. The next level is where you provide some supervisory control and data analytics. The next level is where you provide a manufacturing execution system, and the top level is where you have the ERP system, and it rides on top of that, and you're doing your supply chain management, your logistics management, all the stuff on top of it. Historically, Altra's participated at level zero, where we provided components, and you might have system integrators that would integrate those components into a system. Now we're moving up into the first level, where we have some electronics on our components. We now have the capability to do PLC work in our motor controls and have very complicated, sophisticated controllers for our motors. That's really exciting. Then the next level is really to try to get into level two and level three, and you're gonna hear Dave Ebling talk a little bit about that. We're always gonna be a component supplier, but in order to be a successful component supplier, I think we have to have the capabilities, knowledge, and skill set to be able to participate up through that pyramid. That's what we're doing, as we move up through that, and when I talk about how we're gonna extend the technology and move up the pyramid. That's digitization and automation. Now what are we gonna do to take advantage of and exploit the growing population around the world and the aging population? There's really three areas that are important for us. One is the medical market, another one is food and agriculture, and the other is water and wastewater. In medical, we make components for products like scanners. If you go in and get an MRI or radiation treatment, you'll never see them 'cause they're inside the machine, but there will be critical components made by Altra Industrial Motion that help those things work. Surgical power tools, surgical robots, infusion systems, diagnostics equipment, blood analyzers, ventilators and respirators. We have components going into lots of different medical equipment. In food, there's conveyors, mixers, packaging equipment, and other food processing equipment that we have our components on. Then in ag, it's irrigation, harvesting equipment, material handling. Water and wastewater, pumps, agitators, flotation cells, processing equipment. There's lots of different equipment when you look at these different industries that our components are utilized on. We're excited about the aging and growing population and how we can take advantage of that and utilize that to help grow our business. Then the final one is sustainability. You know, we have the leading position in braking systems for wind turbines. You say, "Oh, so what? That doesn't sound like a very sophisticated thing, a brake on a wind turbine." But it is absolutely critical to how a wind turbine operates. It's critical for safety. You can also go out, and YouTube's awesome. You can go out and watch a wind turbine catch on fire because the wind turbine ran away. When you see a massive wind turbine burning up in flames, and that could've been prevented by having a good braking system, it's pretty impressive. They're used for safety. They're used for holding, for maintenance. They're used to control. Early on in wind turbines, I've been involved with wind turbines since I was in college. They used to oscillate, and actually the gearbox and bearings would fail because of the vibrations and oscillation in wind turbines. The braking systems and the controls we provide actually dampen those vibrations and actually enable the wind turbines to survive for 20 years instead of for just a couple years. They are really critical components, exciting market. Electrification is another one. As people try to get rid of internal combustion engines, and then coincidentally trying to get rid of hydraulics, you know, we have components that can be used to help that. Our electric brake systems and our linear actuators and some of the other products we manufacture are very instrumental as the world becomes more electrified. Dave Ebeling's also gonna talk about an application where, if you're familiar with electric vehicles, the battery production is extremely critical, and they're trying to build capacity all around the world. Our systems are being used in battery production in automating that battery production. Dave's gonna give a little view into that space. Pretty exciting, some of the sustainable markets that we're participating in. I got 17 seconds and 4 slides. Let's see. One of the other things, as I talked about transforming the company, became apparent that, you know, we wanted to move up that technology pyramid, and so we needed to identify what is an Altra-like company and how far up the pyramid can we go, how far away from home can we work. We did some work on portfolio management and defining what is an attractive market for us, and then what is an Altra-like business. We defined what it means, what the characteristics are of an Altra-like business, and some of them are you have to be a solution provider. You have to have engineer-to-engineer sales. Has to be mission-critical components. Has to be higher growth end markets. You have to have very little customer concentration. We don't wanna deal with one or two customers that can just beat the crap out of you and control what you do. We wanna control what we do. They have to be in the power transmission motion control space. That's just a few. We've got other criteria as we created this, what is an Altra-like business. One of the reasons, another reason we wanna do that was we didn't wanna waste our time looking at potential M&A targets that didn't weren't Altra-like, and essentially waste our time 'cause we'd get to the end and say, "Well, we don't wanna spend any money on that company anyway." Let's do that work up front, and then we'll only focus and spend our resources and effort on those that are Altra-like. I'm really pleased with the work we did there. The other thing I'm really pleased with from a portfolio management and M&A management is we have pushed down some of the activity to the businesses. Each business has gone out and looked at their end markets, looked at the products they sell, where should they be looking to go with M&A, and done the work to build out a heat map, then put them onto the Altra-like matrix and said, "These are Altra-like," so they end up in the upper left corner. "These are not Altra-like," they end up in the lower right corner. We've done that work, so we have an extensive pipeline of potential targets that are Altra-like, and it's done by business with the input from the people that know the businesses and know what fits well and what doesn't fit well. I'm really excited about that, and Craig Schuele's gonna talk a little bit more about the portfolio management activity we've been working on. Then here's a couple examples of execution in that portfolio management that I talked about. We didn't just talk about it and put it on a spreadsheet. We actually went and did something about it. We announced that we're gonna divest, that we're in the process of divesting the JVS business, the Jacobs Vehicle Systems business. That is subject to regulatory approvals, and once we get the regulatory approvals, we should be able to close that by the end of the year. We also announced that we acquired a company called Nook Industries. Nook Industries designs custom linear systems, linear motion control systems, and they're in end markets like automation, medical, and defense, which line up really well with our end markets. We're now in the process, and Scott Panigni's heading that one up, of working on the synergies and the integration, and everything's going according to plan. This is a really good Altra-like business. There's a couple examples. Then the third component of the strategy is margin expansion. We've built some really good, robust processes for the key elements that we've been working on for many years. I think many of you that know us have. We've talked about some of the things like strategic pricing, being able to capture the synergies from the acquisitions that we announced, the supply chain management activities that we've been working on, and then productivity improvements. Those are gonna continue to be the tools that we use and the processes that we deploy to drive margin expansion. With that, we expect to be able to drive margins by 300 basis points, improve margins by 300 basis points by the end of 2024. If you put it all together, we expect to see 3%-5% core sales growth annually, 300 basis point operating margin improvement, and greater than 100% of net income free cash flow conversion. I think, I'm really excited about that. Furthermore, we believe that provided the environment is conducive to us executing our M&A strategy, that we should be able to achieve $3 billion in revenues by 2027. If we get to $3 billion in revenues by 2027, we get that 300 basis point margin improvement, and we convert that cash, we're going to, I think, create a ton of value. I'm really looking forward to coming back in a couple of years and talking about how we're doing on those objectives. You know, I believe that Altra has all the characteristics to be a through the cycle compounder and therefore create exceptional value over the next several years. Then I think we'll deserve that moniker of premier technology company. Some of the things that lead me to believe that we're gonna be capable of doing that is the leadership team that we have and the way that they can execute and the demonstrated success that we've been able to achieve, the cash generation that we're able to achieve and that we've also demonstrated, and then we can redeploy that capital wisely, the strong and defensible competitive market positions that we've created, maximizing the growth by focusing the portfolio and the investments in areas that we know, understand, and where we know when we make it do something that we're gonna get the synergies that we promise. A clear path to the margin expansion and creating value by expanding the margins. I think we've got a really, really good strategy. We've got the people in place, and we've got the processes that we need to do. I think we're gonna demonstrate that as we go further through the presentation. With that, I'll turn it over to some people that actually do some of this stuff rather than talk about it, and Al Mason. Thanks, Carl. I'm Al Mason, Vice President, Altra Business System. I've been with the company since 2005. We'd like to take you through an overview of the Altra Business System and how we consider it a key source of differentiation and a critical means of driving value. I'll start out with a broad backdrop of a Altra Business System as our foundational value driver. My colleagues will take you through some examples of Altra in motion, really tangible ways in which we use the Altra Business System within our businesses. With the merger of Altra and the Fortive A&S businesses in 2018, we brought together two business systems that shared some common foundations and some complementary strengths. In terms of the common foundations, both business systems were built on the thinking behind the Toyota Production System. Both also put enormous focus on developing strong problem-solving capabilities based on scientific method, PDCA, and both put a spotlight on human development, the importance of developing the skills and talents of our people to the fullest. Now, in terms of the complementary strengths, from the Altra side of the deal, we brought expertise in applying ABS to low volume, high mix environments. Also, we brought focus on getting the fundamentals right at the workplace and building strong, proactive leadership right at the gemba or workplace. From the A&S side, they brought us very strong capability and breakthrough management, as well as a suite of tools oriented towards commercial processes, growth tools that'll help us grow the business organically, a strong set of supply chain management practices, and a framework for exceptional talent management. Bringing these together creates a unified, holistic world-class business system. When we think about the Altra Business System, our focus is engaging the breadth of the organization in improving the flow of value to our customers. To that end, we design processes that to the greatest extent possible, flow value and very importantly, highlight problems in that flow of value. Closely coupled with that, we develop people who are capable of effectively running these processes and improving them over time. In fact, we seek to embed problem-solving right into the fabric of how we work daily. That problem-solving happens organically every single day. We believe if we do this, we'll drive performance that beats our competition. That's not enough. We seek perfection in how we serve our customers. This thinking applies not only on the shop floor, but to every single process and function within the company. ABS is not static. We're constantly learning, and from that learning, adapting and extending ABS into new areas. It's an evolution. This evolution tends to happen along two tracks. The first is process development. We started with ABS on the shop floor. Based on our learning from that application, we modified our model value stream approach. With the acquisition of the Fortive A&S businesses, we were able to extend ABS into our commercial processes with that rich set of growth tools that came with that merger. We've also been able to leverage some of the excellent supply chain management practices from Fortive. Now we're looking at how we couple technology with our improvement work on the shop floor through our partnership with MTEK. Finally, we've been working to more deeply embed ABS thinking into our acquisition model. On the human development side of our evolution, we've been working very diligently over the past few years to build exceptional leadership right at the workplace through our team leader development program. With the success we've had with that program and the learning from that program, we're reaching for the other end of the leadership spectrum, and we've created a program for the senior leaders in our business units. We've also been very proactively working to more deeply engage our employees and better lever our excellent talent management process. This is an evolution, and we want it to continue as an evolution. It's imperative that it do so we can stay out ahead of the competition. What we seek is a business system that drives value across all stakeholders. Of course, we start with our customers, and we wanna provide value at the shortest possible lead time, highest possible quality. We wanna provide innovative solutions to their specific needs, Voice of the Customer. Great example of that is from our Portescap business. Several years ago, they took a deep dive into Voice of the Customer and identified a need for a different coil technology. They developed that technology, developed a product around it, and they've seen enormous growth for that product. ABS also drives value for our associates. If we apply the ABS principles correctly, we create a work environment that's fulfilling and one that better leverages the full capabilities of our associates. We also provide better, more proactive leadership through ABS. With our team leader development program, we've seen 20% of the graduates of that program promoted into positions of greater responsibility. We also have to think about our place in the local community and the world at large. ABS contributes value there as well. Every time we strip away waste, we're consuming less resource to create the value that we sell, and that means a positive impact on the environment. This is a way, too, where we can engage our employees to a deeper sense of purpose when we point out the impact that we have on the environment with our waste reduction. Example of that is from our Stromag facility in La Guerche-sur-l'Aubois, France, an opportunity to reduce wastewater over the last few years. With this broader stakeholder view of ABS, we think we're creating a sustainable means of driving sustainable superlative performance for our shareholders, and that's what the Altra Business System is all about. With that, I'm gonna turn the floor over to Dave Ebling. He's gonna talk about ABS in motion. Thank you, Al. Good morning. I'm Dave Ebeling. I've been with the Altra companies for about 20 years now. Over that time, I managed several of our business units and am currently responsible for our Kollmorgen and Warner Electric operating companies. With my colleagues, I'm going to explain how we are using, benefiting from, and improving our ABS methodology, creating higher-performing operations, supply chains, and teams. How, with some examples, we're using our ABS methodology and culture to drive differentiated performance and value creation. Later on in the presentation, we'll talk about how we're using ABS tools to drive growth. Since Altra's founding in 2014, we successfully used traditional lean manufacturing methods to drive continuous incremental improvement and targeted breakthrough objectives. To reach new levels of performance, we are leveraging a culture of continuous improvement upon our methodologies and adding the power of digitalization or smart factory technology to our playbook. Altra is collaborating with a leading smart factory solution provider to drive faster and deeper improvements in our operations, to create new sources of revenue for us in the market, and help move Altra's portfolio up the automation pyramid that Carl explained earlier. A good example of our success using traditional lean methods to achieve transformational performance gains is our Warner Electric business in Columbia City, Indiana. This is a business we highlighted back in our first Investor Day in 2014. This is a business that creates components for turf and garden agricultural components. Over the past 7 years, with the relentless application of lean fundamentals, as Al was describing, we've added over 700-800 basis points of operating profit, almost 9 working capital turns, and grew at 4%, an average 4% each year in a mature and competitive marketplace. How do we do that? We did that by applying our entire lean methodology playbook, but by focusing on four areas. First, the facility itself. We laid it out for maximum process connectivity, keeping equipment next to each other instead of having big spaces in between to create an aggregate WIP, and also for maximum material flow velocity. Standard work is a key part of everything we do. Consistently defining, refining, and then disciplined application of standard work enabled us to unlock about 20% of capacity that was hidden in our processes that were inefficient and improve our pace attainment. Third, and as importantly, perhaps most importantly, is people. We have them developed, empowered, and organized into self-directed teams that are in themselves accountable for the performance, supported by a servant leadership mentality and culture, and respected with the focus and investment in ergonomics and safety because it's a very fast-paced work environment. Finally, significant material cost reductions. Chris will explain some of our methodologies about that in a few moments. Further incremental and breakthrough gains are increasingly reliant on manufacturing technology to eliminate non-value add manufacturing, or non-value add work in the manufacturing environment, and data-intensive analytics for supporting continuous improvement and problem-solving over the long term. Digitizing the manufacturing process eliminates aspects of manual management and execution, and immediately gives contextualized data for faster decision-making, faster and more factor-driven data decision-making. Late in 2020, Altra announced an investment in and partnership with MTEK Industry of Sweden. Their award-winning manufacturing execution system called MBrain is considered the fastest and least costly to implement on the market. Over the last 15 months, we've implemented MBrain at multiple facilities, including Columbia City, developed interfaces between MBrain and our Kollmorgen hardware and software products, and initiated a joint go-to-market strategy to drive new growth, revenue growth opportunities for both Altra and for MTEK. Through digitalization, we'll accelerate the value capture in our operations and accelerate our revenue growth through smart factory demand across industries. That's a very brief introduction of MTEK, MBrain, its MBrain solution, and our partnership. We have a short video that Mattias Andersson, MTEK's founder and CEO, will explain in his words, the MTEK story, the product, and our collaboration. It'll also contain footage from our plant in Columbia City, which was the first one that we implemented this technology. Hi, everyone. My name is Mattias Andersson. I'm the CEO and founder of MTEK Industry out of Sweden. We've created the world's first completely no-code manufacturing execution platform. What does that mean? Well, we can actually help customers digitize their manufacturing in a matter of days or weeks, not years, as competitors do. In addition to this, we have, together with Altra Industrial Motion, helped them digitize some of their factories already. Together with their subsidiary, Kollmorgen, we have created a joint go-to-market plan. Now, what will this mean to Altra Industrial Motion? Well, we can help their customers create more value faster. We're executing a value creation strategy, leveraging smart factory technology to extend performance and value capture of our own operations, while monetizing the strong demand for this technology across industries through our technical and market collaboration with MTEK. So far, we've deployed MBrain in four of our facilities, and we're already realizing benefits, including improved process control for quality and output pace attainment, and eliminating FTEs worth of time in the activities around production, preparation, and documentation, which often take about 30% of a team leader's time. That's time much better spent doing problem-solving and supporting the team in higher productivity. We're now also aggregating masses of information, data that is structured in a way that we'll be able to use in the future to drive deeper insights into our operations to do, again, higher levels of performance improvement. We'll deploy this more broadly across Altra at five more facilities, and again, advance or launching our go-to-market strategy with MTEK later on this year. I'm gonna turn it over to Chris to describe some of the methodologies I alluded to in our success at Columbia City. Thanks, Dave. Good morning. My name is Chris Lundy, and I'm the Vice President of Global Supply Chain. I've been with Altra now for three years. Prior to my role here, I was with Beckman Coulter for 14 years. Beckman Coulter is a medical device manufacturer and part of the Danaher family of businesses. I started my career in aerospace and defense, and now have over 25 years' experience with supply chain and procurement. As we start 2022, we continue to build a world-class supply chain organization, starting with our strategic framework, cost, coverage, compliance, and communication. This structure supports our best-in-class tools and processes. Starting with spend analytics, we've been able to increase our spend visibility and accountability as we look for opportunities across the organization. As an example, our spend database now has captured 98% of our direct material spend. Preferred suppliers, value engineering, and sourcing workshops are accelerating cost reductions. Our supplier quality toolbox and a host of other systems provide benefits today while we continue to develop processes and systems to support our long-term vision. While we're all living through a very challenging time and a challenging environment, I'd like to take a few minutes to talk about Altra's response to commodity inflation, labor material shortages, and logistics. As for commodity inflation, our teams are monitoring trends and challenging supplier price increases. This not only positions us well for negotiations in the future as the markets naturally correct, but it's also helping us protect margins today. As for labor and material shortages, the procurement teams are actively involved with suppliers to improve material flow and maintain product availability. We continue to consider dual and multisource strategies across key categories, and we have product redesign efforts underway now to improve and create a more flexible supply chain. As for logistics, regular performance reviews and planning ahead to meet our customer lead times, and we continue to leverage preferred agreements and internal routing guides to avoid the volatile spot market. This multistep approach has been effective response, and we'll continue to use all available levers to maintain our competitive advantage. Finally, our priorities over the next 3-5 years. Building a supply chain digitization and leveraging a long-term, technology roadmap to do more and move faster. Applying a flywheel concept, this is our push to great. Internal and external benchmarking, assessing and implementing additional world-class practices. A continuous process improvement mindset, a culture of discipline people and discipline processes. I'm confident we'll be able to continue to build on our foundation of processes and systems, and continue to improve our quality, delivery, cost, and innovation. Thank you. Next up, is Mark Klossner to talk a little about outstanding leaders driving outstanding results. Thank you, Chris, and good morning, everyone. I'm Mark Klossner, I'm the Gearing OpCo President, and this is my eighteenth year with Altra. I'm excited to be here today because I get to talk about something that's near and dear to my heart. That's our outstanding people, our culture, and the processes and tools we use to make sure we've got the right talent, the right place at the right time. Throughout the morning, you're gonna continue to hear from the leadership team about some of the great things we're doing to accelerate organic growth and drive profitability as a premier industrial company. Everything we do, from how we develop strategy to how we deliver and accelerate the deliverance of value to our stakeholders, is driven by our people and our outstanding culture. We've always had a strong action-oriented culture at Altra and a culture that develops and respects people. Since the merger, as Al talked about, we spent more time in engaging and aligning our teams with our strategic objectives to make sure that we are focused on and solving our most critical problems. Over the next few minutes, I'd like to share with you how we're accelerating performance with our Talent in Motion system. We've all heard the sayings that people are the most valuable asset or that people make the difference. We absolutely believe that's true. It's not just the people, it's the processes we use to make sure that we leverage that asset. Right now, the war for talent is real. It's a very competitive and fierce market out there today. If you're not developing and growing people in your own organization, it's very difficult to win. That's why Talent in Motion is a strategic pillar for Altra. Talent in Motion is a robust set of tools and processes that help to manage, align, and empower our teams, and then second, retain, reward, develop, and engage those teams. Now I'm gonna show you some of the concrete examples of how we use this robust process in our business. Taking a closer look at the process, part one of Talent in Motion are the tools that complement our strategy development, deployment, and execution. From a planning perspective, we use these tools to make sure that we have the right talent to support our long-term strategic needs and that we're developing that talent over a multiyear period to meet those needs. Our policy deployment tools help to translate strategy into action and align the organization and empower our teams to solve our most critical problems by providing clear ownership of those initiatives. Finally, through stretch performance goals and closely aligned personal objectives, we engage and motivate our teams to solve our most critical problems. Part two of Talent in Motion is engaging, developing, retaining, and rewarding our team members. One of the primary tools we use for engagement is our annual engagement survey. Every year, we attempt to survey every one of our team members across all of Altra to collect VOC on the issues that are most important to our people. The survey is designed with 35 parameters, and we can keep many of those parameters consistent every year so that we can benchmark ourselves internally and against external organizations to make sure that we're continuously improving in our engagement. In addition, we can customize the survey to make sure that we're addressing current hot button issues. As you can imagine, we've had a few of those over the last couple of years with the pandemic. We take all that information to get back to our businesses. We analyze it, and we're working with the teams. We implement improvement priorities and execute those improvement priorities in a closed-loop cycle. That plan-do-check-act cycle that Al mentioned. It's resulted in some great results in a very difficult market. We've seen 100 basis point improvement in engagement across Altra in the last year. We've seen 115 basis point improvement in retention at the Gearing level. You know, sometimes you'll hear people say, or coaches say when they talk about team members, the best ability is availability. In this market, when you're fighting for talent and trying to deliver product, that's true, and retention is a huge value driver for us in the Gearing business. Lastly, we saw a 200 basis point improvement in how our team members view Altra's commitment to development, their own personal development and growth. Al mentioned two of those things already. One being our senior leadership development program that helps contribute to that 200 basis point improvement. The other is, Al also mentioned our team leader development program, which I'm gonna talk more about and give you some more details on the next page. Financial rewards have always been important and will always be important, but non-financial rewards like development and coaching are increasingly important to attracting and retaining our best people, and particularly in this type of market where labor has more choices. Coaching and development engages people in the work and allows them to grow personally and continue their own growth journeys while improving the company. Our team leader program that Al mentioned has been a vital part of developing first-line leaders in our organization. In our Charlotte facility, it's really been a great tool for bringing a diverse set of people who are really starting out as working in manual work and assembly and machining, people that are at the gemba adding value, and we promote them into a leadership role. Rather than just throwing them into the deep water, what we do is we have this team leader development program which trains them how to be a leader, how to deal with people, how to coach, how to have respect for people, and how to mentor. I'm gonna play a short video. It's gonna show and the team members in my Charlotte facility are gonna describe what the team leader program is to them and what it means to them. The team leader is responsible for the safety and the quality of the production. For me, the team leader development program is all about people development. It's a comprehensive program that lasts five weeks, that gives the participants many tools in their toolbox to be able to help them as they grow their career within Altra. The team leader program was one of the best training for anybody who wants to be a leader. We learn lean manufacturing skills, which is basically our Altra Business System. You should be the one who knows the most about it all, to help the team members. Going through the team leader training personally helped me to realize how much focus we need to have on our people as our most valuable resource. My daily working with as team leader is to support on the team member. I'm always, you know, right there. I try to help out my best. If for some reason I can't figure it out, I've got my radio, and we have support from engineering. The support I got over being a team leader was fantastic. I never wanted for anything. If I had a question, concern, something we could improve on, all I had to do was bring it up. The other key learning was problem-solving. We'll figure out the best solution to the problem, learn from it, add it to our job breakdowns, change the standard work if we need to. They come back from the training with a completely different mindset. The impact on this training has definitely made me wanna continue to stay with this company and keep learning more and improving more. Hopefully, be a production supervisor one day. I'm just so proud to see them grow their career and see them continuing to work hard every day to make Altra successful. I get to be hands-on with the actual units and build some, but I also get to do some of the design when designing tooling, and so like I said, I get both sides of it. Oh, I love working here. This is the best job I've ever had. I will continue to learn. Respect. I think in my team, everybody respect me, and I respect everybody. Boston Gear really give me a lot of opportunity to grow and make my job very interesting. I'm super proud of this team. Just a really great group of individuals and a great team. The type of engagement that you heard from that video, that is rare in an organization. It's something that we believe is a competitive advantage that comes from coaching and developing our people, engaging them in the work to solve our most challenging problems. Super proud of that team. That translates into outstanding results. It really is a great example of some of the outstanding work that this team has done. They've increased revenue per sq ft in that facility over the last five years by 61%. They've increased the total gross profit generated by that facility by 64%. As we're doing that, we continue to develop and promote these people. Specific to this facility, we've almost promoted 40% of our team leaders on an ongoing basis. That's what winning looks like with exceptional people. Wrapping up, Talent in Motion is a strategic pillar of ABS and of Altra. It's a robust set of talent management tools to support everything we do in all of our activities. It provides the tools to manage, align, deploy, engage, and retain our talent. It enables us to accelerate growth and profitability. Our Charlotte's location is a great example. It's one of the early adopters to this program, as we think there's a lot of runways to leverage this program across the rest of Altra going forward. In summarizing for this first section for my colleagues and my presentation, ABS is in the past, I think, primarily been associated with lean improvements on the shop floor, as Al said. The message we want you to take away today is that ABS is much more than that. It's the fabric for how we improve and accelerate performance in everything we do in our business. It encompasses a broad set of processes and tools, from supply chain to strategic pricing to how we develop strategy and deploy that strategy across the organization. It's critical in how we develop people and lead people, and it's critical to our future growth. With that, I'm gonna turn it over to Dave Ebling, who's gonna talk more about our ABS growth tools. Okay, moving on to organic growth now. I'll be joining with several of my colleagues to describe our ABS methodology and explain how we're using it to accelerate growth at Altra. Carl outlined earlier our strategy to drive consistent organic growth of 3%-5% a year. Our growth methodology applies a comprehensive and proven set of tools targeted at markets and applications with the strongest growth trends that also leverage our established competitive advantages. I'll start by describing our methodology and process model with several examples from Kollmorgen showing how we are succeeding using the ABS tools to accelerate growth. I'll then turn it over to my colleagues to explain how we are applying ABS in markets with strong and sustainable growth trends. Did that not advance? Yep, there we are. We have a structured and proven ABS methodology for growth. It's built around what we call the 3D framework, Dream, Develop, and Deliver. Like all our ABS methodologies, it's a robust and effective set of tools. It's organized. The organization is trained and practiced in its use, and our culture cultural continually strives to improve it. The power of our methodology and culture will deliver consistent growth and value creation for Altra and its shareholders. The first phase is Dream. In this phase, we identify and select the best opportunities from deep insights into customers and applications. The Dream process starts with the strategic planning process. In that process, we ask three very important and direction-setting questions. What game are we playing? What will the winners look like? And what critical few strategies, after looking at all of that, do we pursue? We identify the most important and impactful trends, the big secular trends that we often always talk about, disrupting and enabling technology trends that are emerging or not even that are even hidden already, and the emerging and changing competitive dynamics of our marketplace. We then segment the markets and applications at the most granular level possible to uncover insights into value opportunities. We create theories and test value propositions with our customers. At the end, we have sized and prioritized the best set of opportunities for us. A good representative example of our recent success in this is the lithium-ion battery production market in China. I think we all know by reading the newspapers that the rapid growth of production over there. Simply identifying that opportunity as that rapid growth in China as a opportunity for us is neither a novel insight nor a guarantee that we could grow profitably in that space. Our success came from disciplined use of our process, understanding the entire industry from beginning to end, all the players, all the equipment, and all the processes at each tier of the way, and really diving into the technical details of each production step. We engaged across the entire industry to get those insights. The machine builders for the battery production, these are our potential customers, their customers, the actual battery producers themselves, and even the OEM users at the end of the chain, the electric vehicle manufacturers, for instance. Kollmorgen's unique value advantage always circles around addressing the most challenging motion control applications. We say when motion matters, we win. The team identified those most challenging applications and found uncovered through all this collaboration areas where downtime, scrap, or quality problems would cause challenges and lower quality for our customers, and where higher levels of precision that only our machine, our equipment, highly integrated with motors and drives can provide, including battery quality, power density, and most importantly, battery lifecycle. By creating and value testing these propositions with customers all along the tier, we found that we had a differentiated value proposition and that is a big driver for our rapid and substantial gain in just three years. This is an opportunity that we're gonna be able to replicate when we see more battery production going on in Europe and probably eventually the United States. The second phase of our framework is Develop. This is all about developing the right products fastest. These are the ones that we defined and means tested through the Dream process. We use an accelerated product development process, which is the primary engine of this phase, which maximizes concurrent work, minimizes performance and cost specification misses through disciplined tollgate system, and enables a seamless integration with the production launch preparation work. It's metric driven all along the way to ensure that we have programs completed on time and to specification. As with all of our methodologies, we're continuing to improve this one as well. We're innovating our innovation process. Basically, we continue to innovate the innovation process, where we have significant growth opportunities to win by producing more products faster. Next example shows how we transform deep application insights through the dream process into creating a next generation product platform built around breakthrough innovation, delivering unmet needs in high growth markets, in particular, robotics and aerospace and defense. We completed customer and competitive analysis that told us that there were certain unmet needs in the market, including performance, torque density, and specific form factors and features. The key was they had to be delivered at an enabling price point that would allow the customers then to have applications where they could grow their volume. We did this by meeting the price point, we needed a breakthrough technological innovation. In addition to that breakthrough technological innovation for the product, it required an innovation breakthrough on the production process itself. By figuring out that production process innovation, before we even finished the design on the product, we were able to cut the production, the whole entire project time from 4 years down to 2. We continue to improve our product development processes through lean development methods and aggressive use of design for manufacturing. Within 2 years, with this new product, which is a market leading revolutionary product, we are shipping at scale within 2 years and already have a substantial backlog. I'm really messing up on the slides here. I'm sorry. We're missing a slide. The third and final phase is Deliver, improving our demand generation and opportunity conversion rate to accelerate growth. In this phase, we maximize revenue growth through a detailed set of processes for demand generation. The primary process in this phase is Transformational Marketing. This generates raw leads from multiple channels, qualifies those leads through a structured process, and fills the sales funnel with targeted high-quality opportunities to convert new business wins through the sales execution process. My last example is more of a detailed look into the process itself and the Deliver framework and the growth driving results they produce. To win new business in this structured process, we build market visibility to expand the marketing mix, develop and execute campaigns, and generate and manage leads. The process is intensely metrics-driven by tracking. We track over 50 metrics at all levels of the process and stages throughout it, including campaign ROI for better targeting of our marketing efforts. Just 2 examples, we've increased our leads 57% over the last 3 years, qualified leads, and have increased our sales funnel value by over 50% in the last 2 years. Both strong leading indicators of future growth. I'll hand it over to Mark to continue our discussion on growth. Good morning. My name is Mark Stuebe. I'm the current President of Altra's Couplings Clutches & Brakes group. I've been with Altra 20 years and with the Warner Electric brand. I started with a mere 38 years ago, so I've been in the industry a long time. Today I wanna talk about how we have significant opportunity within Altra, as Carl said, to move up on that technology curve, but specifically how we're creating smart components, so that our customers and users of our product can take advantage of that technology shift. We're doing that by using one of our key advantages or our differentiators in the industry, and that's our deep application knowledge that exists with our engineering and our sales organization. We're gonna use that knowledge to look at remote monitoring to reduce downtime, improve productivity, and create more value for our customers. We're starting out in two key areas. The first is in vertical lifting systems or in port cranes, where a lack of labor and specifically, skilled labor is at a premium today. By driving, predictive maintenance and ultimately, remote monitoring, we can eliminate downtime and increase efficiency of the port operations. Also in mining has been moving towards automation for many years with the use of autonomous vehicles and the like. With the remote geographic position of mines and the labor there, our remote monitoring capabilities will help us to predict downtime, but more importantly, make sure that the mines who use our products have our aftermarket parts available for when it's needed, again, eliminating very expensive downtime. Many of our customers today are still in that reactive maintenance mode, and we wanna give them the opportunity to move towards more predictive and ultimately proactive maintenance. Our solution is to create monitoring systems by enabling our products to be IoT-ready. Through data collection and simulations and condition monitoring, we'll be able to provide predictive maintenance capabilities to them, again, eliminating that downtime and creating more value for the customer. Our approach has been to create a common Altra architecture for our IoT initiative. We've completed that task. We now have pilot programs in the field. We will expand upon that in 2022, and we'll introduce that to other Altra brands in 2023 or sooner. By doing a common architecture, that allows our brands to focus on the specific application expertise that they possess and also eliminates the time to market. They don't have to focus on the architecture. We've solved that problem for them. It's now just focusing on their specific examples. One of the examples that we have a long history with is our SOBO iQ. We introduced the first SOBO controller back in 1997. We have more than 200 systems in mines throughout the world, and our latest release is the SOBO iQ. The SOBO iQ is completely internet capable, and it also has artificial intelligence capabilities. It is constantly learning the system as our mines are running, as the mines in the world are running our products and our clutches and brakes. We expect to generate year-over-year revenues of about 15% or greater on the growth platform here, and we're well on that path. Here's an example of the remote monitoring capabilities of the SOBO iQ, so we can monitor things such as speed, pressure, is the brake on or off. Here are three examples where mines in Eastern Europe and Western Europe have benefited from our remote monitoring capabilities. The downtime in a mine can exceed, you know, $ thousands per hour in lost productivity, and we have numerous examples where we've eliminated that downtime throughout the process. Here's a solution in the crane and hoist market with our Stromag brand and their C-Mon Control. Here we have developed a smart hydraulic power unit that controls the hydraulic brakes. This is connected to the cloud, and we directly communicate with the maintenance crews and give them performance warnings and performance data on a continuous basis. That allows them to better utilize their labor, and again, make sure that they have the spare parts available in case of failure. Those spare parts are what we like in our industry 'cause it creates that sticky aftermarket that we value. In summary, by creating this IoT solution for Altra, it builds the trust and loyalty of our customers. It plays upon our strength and our competitive differentiation by having that expertise. It accelerates our growth, and it also expands our margins through that sticky aftermarket. Our current pipeline is about $20 million of projects within CCB on an annual run rate. We are well on that path, but that does not include the pull-through products that we have as we account for the clutches and brakes and couplings that are associated with our IoT solutions. The pull-through is even better when you look into 2023 and beyond, as we incorporate more of Altra's products into the IoT platform. The future is very bright. I'm excited by this, and I think this is gonna generate significant revenues for us, going forward. Thank you. I'll now turn it over to Scott. Good morning, everybody. I'm Scott Panigny, and I'm the President of the Thomson business. I've been president of Thomson for about five years now, and I joined the Altra Leadership team about three and a half years ago as part of the A&S merger. I'm excited today to tell a story about the Thomson business and how we've used kind of the Dream, Develop, Deliver methodology to gain share in the digital world. There's been a growing trend for the past decade of our customers, engineers, spending more time online doing technology evaluation and size and selection before they even get ahold of a salesperson. We saw this as an opportunity to become the leader in digital assets and integrate Thomson into our customer's workflow. We really had this hypothesis that if Thomson Linear could be the go-to resource for engineers looking for linear motion solutions, that we could generate more leads, get designed more often into machines, and then ultimately, that was gonna help us to accelerate growth. With that vision, the first thing we had to do was build a structure in order to be nimble and have capabilities in-house. We built a team of in-house software developers who could build the infrastructure and deliver on thomsonlinear.com. We had to give them a set of tools to be nimble. We invested in things like Agile software development process and tools to help them do fast experimentation. That really set the backbone for the strategy to then push into the digital world. After that, we spent a lot of time with customers, observing them in our online environment, navigating our website, understanding what tools they did and didn't use, discussing with them what worked, what didn't work. We also did a lot of benchmarking. We actually watched them go to other technologies, websites of what they liked. That really helped to build a foundation for how we wanted to design the site. We then needed to move fast. There had been this traditional software development where we'd gather all this information and spend it, you know, months and quarters developing software, and we changed that philosophy to much faster prototyping, putting mock-ups in front of customers and having them choose what worked for them. That really accelerated the pace of development on the site. From all that work, sort of 2 buying behaviors became very clear. The first of which was there was a group of customers who just wanted simple size and selection. They wanted to go in, quickly navigate what they needed and be able to get to the product that fit their application. There was also a different set of customers who really wanted to optimize. They wanted to optimize their cost, they wanted to optimize their performance and their design, and so we developed some advanced tools that allowed them to customize. Behind each of these buying journeys, we put an e-commerce platform, and that allowed customers to come online, size and select what they needed, download 3D models, and procure directly from the website to get the parts onto their machine and put us in the lead position for getting spec'd in. What happened as part of this journey we've been on? We've seen about 1.5 times more qualified leads come in over the last 5 or 6 years as we've gone through this journey. Maybe more of an acute example is we launched a new size and selection tool for our ball screws, one of the product lines within Thomson, back in January of 2020. Since then, we've seen a 375% increase of CAD model downloads. These are models that can go directly into their machine designs and put Thomson in the lead position to win. All of this has translated into 2021 being the year of the most new application wins in company history. Ultimately, that translates into attractive annuities and long-term growth. Beyond Thomson, Dave's business, Warner Electric, has also been thinking about how to use online to gain share in the aftermarket business for clutches in turf and garden. Warner is a market leader in clutches in the turf and garden market. The aftermarket for those replacement parts had been held by the OEMs. Dave and the team had an opportunity to think differently about how to change the game, how to get access to that attractive aftermarket, but they didn't have a channel. They really needed to develop a way to go after the DIYers and these repair shops for aftermarket clutches. The result of that was they developed and launched an e-commerce site back in November 2019 called PTO Direct, and the results have been really impressive. In the first 2 years, they've seen over $1 million in sales through that channel and accelerating. 115% growth in year 2, and all of this is at highly accretive margins. What's exciting for me about this is that they've now built a platform that's scalable to take this model and push it beyond just the turf and garden market. Hopefully you get a flavor of how we've used a bit of ABS to grow in the digital world. I'm gonna talk a little bit about winning in medical robotics and tell the Portescap story of how they've taken strategic planning into product roadmapping and into the new product development process in order to gain share in the custom motor market in medical and robotics. I'm doing this on behalf of Rishi, who's the president of Portescap. He is based in India. Unfortunately, he wasn't able to make it over here for the week. But I'm excited to tell the story. One of the growth markets for Portescap has been in the medication delivery systems. It's a fairly established market. It's got a TAM for Portescap of about $76 million and growing at about 6%-7% a year. One of the kinda key applications here is in diabetic infusion pumps. Just a couple of stats on the growth in that market. I guess unfortunately from a health perspective, the number of patients with diabetes has quadrupled since 1980, and it's expected to reach about 600 million people by 2040 globally. It's got a stable growth market to it. Beyond just diabetic infusion pumps, there are all types of new drug delivery systems that are being developed that need very accurate metering of dosage. We're seeing more and more of those therapies happening outside of the hospital. Mobility is becoming more and more important. Portescap, in order to take advantage of this trend, has developed a line of small, lightweight, and quiet motors that can really be customized to win in this market, and there's some really exciting growth potential in the medication delivery systems. Another example of a high-growth market is around robotic surgery. You know, I think this is a market that's relatively small but growing quickly, and it really has long-term annuities that are very attractive and long-term customer relationships. You know, the value proposition for robotic surgery is just very, very clear. Less invasive, better accuracy, better patient outcomes, and shorter recovery times. We think the long-term growth in this is really attractive. To support that market, Portescap has developed motors that have the needed precision for robotic surgery, but also a line of sterilizable motors that are required to win in this category. They've really spent a lot of time investing in the R&D to be positioned to win in this market. Outside of robotic surgery is just robotics in general. A few different applications that have been impactful for the Portescap business, one is unmanned vehicles, both in the air and on the ground, and the growth in cobots, so robots that work side by side with humans in factories, which have just become very important in a tight labor market with surging demand. In this market, Portescap works with their engineers with robotics engineers to help design and customize solutions for their particular robotic applications. They've developed, you know, a comprehensive line of flat brushless motors that are really well positioned in terms of lightweight and performance in these markets. Hopefully through these three examples, you get a sense of how Portescap is using targeted new product development to gain share in the attractive markets that they wanna go after. I thought I'd just kinda sum up the section here. You know, driving sustainable and profitable organic growth is a key element of our premier company journey. I just really do wanna highlight that. You know, hopefully you've got a chance to see how we've built a wider range of ABS growth tools that the teams are deploying. We've got really great opportunity to capitalize on IIoT to add more value to customers and get more deeply embedded with them. We will become the vendor of choice for online solutions. I think that's a clear opportunity for us. We will aggressively invest in markets with high growth and high profitability. Hopefully you all get a sense of some of the exciting opportunities and levers we have to go drive organic growth across Altra. I'm gonna hand it now to Craig to talk about M&A. Great. Thanks, Scott. Again, I'm Craig Schuele, Executive Vice President of Marketing and Business Development. I've been in the power transmission motion control space with Altra and its predecessor companies for the past 35 years. What I'd like to do is spend the next 10 minutes or so talking a little bit about a perspective of how we're refining our M&A processes to more actively participate in the M&A market, and then give you an example of these processes in action. Let's start with some context. As we look at where we're going, I think it's important to remember that Altra today is a larger and stronger company, and at the same time, the M&A market has become more competitive. As a result, we've taken an opportunity to refine our M&A processes to address both the market dynamics that are occurring today, but more importantly, the evolution of our product portfolio. Prior to the merger with A&S, we made 10 successful acquisitions in the power transmission industry, primarily by focusing on underperforming businesses and then using Altra scale to improve them. By adding the A&S businesses during the merger, as you've heard a couple times today, we were able to move beyond power transmission and up the technology scale to include motion control products, systems, and components. As we've begun to shift our focus to acquiring companies that now fit our broader growth and portfolio objectives, we're well in a position to use new and refined processes to accomplish this. You know, we've successfully integrated the A&S business. Our balance sheet is strong, and while we'll continue to remain disciplined, there are opportunities for us to create value, and to begin to reenter the M&A market. As a reminder, you know, Carl talked about our investment opportunities across the two-axis matrix. We can use this matrix as a guideline for where to focus our M&A efforts. Companies that are Altra-like, the X-axis of this matrix, and then the secular strong markets they participate in across the Y-axis. By focusing on the upper right quadrant, we can guide our M&A efforts and use this matrix as a foundational filter to really define and guide us in the types of companies we're looking to acquire. Having those companies be Altra-like, you know, the X-axis of that matrix is absolutely critical to our M&A processes. What is an Altra-like company? Carl talked a little bit about it, but as a reminder, they're companies that make highly engineered power transmission and motion control products that are very application-specific. They typically tend to involve technical sales processes that require significant engineer-to-engineer contact and interface. They're companies that provide solutions that are critical to end customers' product performance, where failure really isn't an option. They tend to be companies that enjoy top three positions in their niches in applications. They have proven long-standing customer relationships. Finally, they're companies that participate in markets that are aligned with strong secular trends. Many of the markets my colleagues just talked about that we're pursuing from an organic growth perspective. To ensure that we're aligned with Altra's portfolio objectives, we've built upon and refined our processes throughout the M&A cycle. First, by identifying targets that are Altra-like. Secondly, by thoroughly diligencing them with a high level of focus on distinct areas to improve both the top and the bottom line. Then finally, to successfully integrate them. We believe that there are opportunities to create significant value at every stage of the process. I'd like to take a little closer look at each one of these stages, starting with the strategic discipline stage. It's really focused on first identifying and then nurturing attractive Altra-like targets. You know, historically, this process was primarily handled at the corporate development level, but we believe by moving this activity out closer to the market and asking our OpCo presidents and our OpCo leadership teams to conduct this activity and align the search for good, solid businesses with what is Altra-like and what aligns with their OpCos, we have a great opportunity to further fill the M&A pipeline with companies that really fit our portfolio objectives. We won't do this in a vacuum, however. We've provided you know, a significant set of robust screening tools that allow the teams to actively ensure that the targets we're pursuing are aligned with our portfolio objectives. By focusing companies that are aligned, you know, with these strong trends, we have the opportunity to use technology to nurture and manage these companies. You know, synergies are always important in valuation in acquiring companies. In today's competitive environment, the quantum of synergies can really make the difference between winning and losing a deal. That's the focus of this valuation discipline stage. We're pretty good at due diligence today, but by incorporating an ABS framework, we're developing processes that help us more aggressively identify and vet synergies. By using specific ABS leadership growth and lean tools and tailoring them to an M&A context, we believe we can win in today's competitive market and remain disciplined, focused on value creation. Finally, the third stage, integration discipline, where the rubber meets the road, execution. You know, if we've done a good job of aligning with Altra-like criteria and then properly diligencing the synergy opportunities, we should be poised to install relevant ABS processes very early on in the 100-day plan and during the integration, use established ABS tools with a new company twist to support synergy execution. The nice thing about this is all this activity is driven by the OpCo teams that did the diligence, that wrote the white papers, that developed the synergy targets in the first place. I think this is where we believe we'll really be able to deliver bankable value creation, rapid and deep deployment of ABS tools during integration to establish accountability and cultural alignment. Now I'd like to take you through a very quick example of how we actually use this process during the Nook acquisition. I think it was Carl mentioned earlier, you know, we announced the acquisition of Nook at the end of last year, a leader in engineered linear motion systems. And throughout the Nook process, you know, we started to build and refine and apply these new M&A processes and essentially use Nook as a test case at every stage. As Scott and I worked closely with the Nook owner to really understand the competitive differentiators of the business, and we spent a lot of time with the Thomson team attempting to assure that Nook was really an Altra-like target. It was a really competitive process, but at the end of the day, we won based on the confidence we had in developing value-creating opportunities aligned with our core ABS competencies. Two months into the integration, things are going great, and we are right on track. Throughout the process, we really worked hard to maintain focus on confirming our thesis that Nook was actually an Altra-like company. At the end of the day, it really was a slam dunk. The Nook products are completely aligned with the Thomson product portfolio. 75% of Nook sales are non-standard products, supported by a really strong and deep engineering team. The company's focused on critical applications where product liability is paramount, and product failure really is not an option. They have solid, entrenched customer relationships, and a strong position in several of our key targeted growth markets, factory automation, medical, defense. It was this alignment with Altra-like criteria, coupled with our aggressive use of ABS tools to identify and now begin to execute synergies, that allowed us to post a $6 million synergy target, or 14% of acquired revenues, which in my mind and from my memory, is the highest number that Altra has ever had. By now, we have successfully acquired 12 power transmission and motion control companies. We're shifting our M&A pipeline fulfillment processes and management responsibilities out of the corporate world and out into the OpCos, where they really can use their knowledge of the markets to make a difference and further fill the pipeline. We're using proven ABS tools not only during due diligence, but during integration, to execute our synergies and drive bankable value creation. As we've proven over and over again, we can and will remain strategic and disciplined. With that, I will turn it over to Todd to give us a view of the financials and how all these activities drive results within our financial performance. Thank you, Craig. I'm Todd Patriacca. I am Altra's CFO. I've been with the company for 17 years now, but in my current role for all of 36 days now. Really excited that everybody is here today, in person and online, so really appreciate it. Moving in. We have got a very durable operating model. We are a very resilient, cash-generative business with a long track record of disciplined balance sheet and working capital management. As well as our capital allocation, we have strived to, you know, build a business focused on our margin improvement, and we're gonna lay out a roadmap today of how we expect to meet these new targets on organic growth as well as our 300 basis points of margin expansion. As you can see, 2021 was an exciting year for us despite everything that was going on globally. We recorded, as Carl said, record revenues. We also delivered record levels of adjusted EPS while maintaining our margins throughout this challenging time. We went into the pandemic, you know, took out a number of costs, which helped provide us with great margins during 2020. We've now put those costs back in in 2021 and still maintained margins at, you know, those mid- to high-teens levels. As Carl mentioned, we generate a lot of cash at Altra. Since we did the A&S merger, we had three priorities, which were pay down the debt, pay down the debt, pay down the debt. We did just that, you know, dedicating over half of our capital allocation priorities to debt, all with the goal of getting back into our targeted leverage range of two to three times net debt to adjusted EBITDA. You know, we said we were gonna generate $1 billion of free cash flow over 5 years, and we are well on track to do that, generating $720 million of free cash flow in the last 4 years. This really positions us well to go and deploy that capital and execute on the M&A strategy that Craig laid out, as well as invest in organic growth activities that the rest of the team has discussed. We really wanna become a compounder in this space, and we think we have the tools to do that and the cash flows to support that. We have gone back to our playbook with the A&S merger. I'm gonna show another slide, but we have consistently showed how we can do an acquisition, lever up, generate cash, delever, rinse and repeat, and start that process over again. We have great liquidity today. Currently, we're at $395 million on our revolver and almost $250 million in cash and cash equivalents. However, we've got plans to pay down debt by $150 million out of cash generated from operations, as well as the proceeds from the JVS divestiture. When you factor all of that in, that's gonna leave us nearly $1 billion worth of capital to go out and deploy at a very comfortable leverage level. We expect to be around 2 times after we close the JVS transaction. Here's the slide I was talking about. I love this slide. This is a history of Altra, showing exactly what we said we were going to do, which is maintain leverage in that target range of 2-3 times, and as we step out of that range, quickly move to delever and get back into that range so that we can then do more acquisitions. As Carl mentioned, in 2009, the financial crisis, we generated the most cash that we had historically at that point in time. Instead of just sitting on the cash, we actually went out and actively acquired bonds out in the public market to try to maintain our leverage within our target range, despite the fact that our revenues had been cut by 30%-35% and our EBITDA had been cut in half. We have a great reputation with the rating agencies and with our debt investors due to this prudent balance sheet management, and it's allowed us to be able to then go out and execute on our M&A strategy. What does this all mean for us going forward? We are going to remain committed to having a strong balance sheet, and maintain that target leverage range of 2-3 times. As we step out of it, we will prioritize the paydown of debt to get back into it and facilitate our M&A process. We are going to invest in profitable growth, both organically as well as inorganically on the M&A side, and the types of things have been laid out by the team, but supporting strategic objectives, as well as funding automation and technology strategies. Finally, we'll be returning capital to our shareholders. You know, we will be able to continue supporting our dividend as well as evaluating other opportunities for returning capital to shareholders. Investing in growth for Altra is allowed through our disciplined balance sheet, and our margin expansion activities, which I will lay out to you momentarily. We're gonna focus on where we can make a difference, tough applications, areas where we have strong engineering and application knowledge, difficult engineering problems, as well as accelerating that process by utilizing the ABS growth tools that my colleagues discussed earlier. Additionally, as Carl mentioned, you know, we are targeting markets with strong secular trends, and over 50% of our revenues are facing those trends. Here's our roadmap for how we're going to get the 300 basis points of organic margin improvement. The biggest piece of the improvement is going to be through our organic growth and pricing initiatives. This includes both our strategic pricing activities as well as our accelerated product, new product development procedures to allow us to get out to the market faster and solve customers' problems quicker. We'll utilize the ABS growth methodology, including what Mark talked about, some of the IoT and smart factory applications, and be able to do this and grow throughout the cycle over the next 3 years. Additionally, we have other cost opportunities where we can reduce those costs. These include leveraging ABS to continue removing waste and making processes more efficient. It's plant consolidations. As you saw earlier, we have 49 facilities, and we still have opportunities to reduce the number of facilities, as well as making sure we execute on the Nook synergies that both Scott and Craig spoke about. Finally, looking at opportunities to continue leveraging our fixed cost base and make those processes more efficient, whether it's shared services arrangement, centralization, leveraging our fixed cost base across more acquired entities, et cetera. Finally, there's PPV and VAVE, our value engineering and value add process. These are really important to Altra and really help drive a lot of our margin expansion, as well as helping to support investments in strategic activities. By working this and having an active funnel and managing this, it allows us the flexibility that we can draw on those tools and those resources to help offset a problem we may have encountered due to a greater macro issue that we weren't able to control. Additionally, we're really excited about the work we've been doing through the pandemic, and we believe there's a lot of opportunity to unlock trapped savings in procurement that's really been trapped there during the pandemic as we struggle to get through all of the supply chain issues and logistics issues that companies are facing across the board. Finally, there's, you know, further upside potential here through M&A and disciplined portfolio management. The final point I wanna make on this slide is. We're not going to be neglecting our people or our ability to invest in growth. We are going to invest a significant amount of money in maintaining the right resources, investing in the right strategic initiatives, and still be able to deliver 300 basis points of margin improvement over the next three years. 2022 is gonna be a transitional year for us with the announcement of the divestiture of the Jacobs Vehicle Systems. I wanted to point out that despite the fact that we'll have lower revenues by the end of 2022 on a pro forma basis, stripping out JVS, we expect to be able to improve our margins by 120-140 basis points. Additionally, it will help remove some of the cyclicality from our revenue stream. For example, if you look back at 2021 on a pro forma basis, the remaining portion of Altra would have grown. It grew 160 basis points better than the blended company with JVS in it. This all leads to what Carl opened the presentation with, is our three-year targets. We believe we can grow our core revenue 3%-5% through the cycle of the next three years. We believe we can generate an additional 300 basis points of operating margin, and we will return to our greater than 100% free cash flow conversion. As Carl mentioned, we have a goal to achieve $3 billion in sales in five years. We believe that if we execute on the actions within our control, we can generate 25% of that, and then M&A plays a big portion. We feel that, you know, that is approximately $700 million-$800 million worth of revenues that we would need to acquire, and it's going to be dependent on having willing sellers, favorable market conditions, both from the banking side as well as just commercially. They need to be Altra-like. They need to fit in with the goals and objectives that we have for our M&A. We also feel that depending on the cadence of these investments and our disciplined balance sheet approach, we can maintain leverage close to the high end of our target range through this if we execute appropriately and at the right points in time. Here's just a look back at our journey of Altra and just how we've changed the business over the years. You know, you see the past, legacy PTT, where we are currently and where we expect to be in the future. Everything is moving in the right direction. Better growth prospects with less cyclicality should lead us to stronger revenues. We actually are gonna generate over $400 million of increases in revenues when you strip out the $200 million or so of Jacobs Vehicle revenues from the numbers. So quite significant in line with the projections we're providing. Higher margins, as well as a prudent leverage level, at the lower end of our target range. This, of course, assumes no acquisitions, which we will hopefully be executing on, but this is just to show what's within our control and where we think we can be. Finally, you know, we're very proud of what we've achieved over the last several years, but we're really excited about the future. We're excited to be back out doing acquisitions again. We're excited about the opportunities that ABS has for us. You know, we're excited about what we can do with the margins and the financial profile of this company. I really look forward to speaking to you again and showing you how we're gonna continue to unlock the hidden potential within Altra. With that, I'm gonna turn it over to Carl for some closing remarks before we take your questions. Thank you, Todd. You know, I couldn't be more excited about the future of Altra, and I hope you got a feeling for some of the things that we think are really gonna make this a different company and a significantly better company. We have great brand names and enviable market positions in growing end markets. We have a diverse customer base with mission-critical applications yielding excellent margins. We've developed the robust processes and a culture of continuous improvement to effectively drive the growth, the margin improvements, and improve our asset utilization. We have a strong balance sheet and tremendous cash flow. We have developed a robust process for identifying, nurturing the appropriate Altra-like acquisition targets. We have a great team up and down the whole organization that's capable of executing the strategy and managing an even larger company. You got to see some of that management team today, and it really goes down through the whole organization. With that, I think we'll turn it over to Q&A. We're just gonna set up a couple chairs, Mike, and yeah, let me just go through the format. If you are online, there's a chat box that you can ask your question through, and we'll filter those in along with the ones of people that are here in person. If you're here in person, if you just raise your hand, we'll pass the microphone over to you. Please wait for the microphone so that the people that are online can also hear the question. All right. You have a question? This chair survives this thing. It's shaking and rocking. Everyone, thanks. Can you break down that 3%-5% growth for us a little bit harder? You know, you look at slide 17 and you have a bunch of end markets that are growing well above that 3%-5%. I suppose you add those up, the implication is you've got markets that are growing below. How true is that? Is there just an element of conservatism in there because you really haven't put those growth profiles up as a public company before, and you wanna make sure you get something, a stake in the ground first? Is there anything about next year, inflation, what's going on geopolitically that's impacting it? Just kinda break that down a little bit, basically. Yeah, I think we've talked about this before, Mike, where we believe we have a 12-cylinder engine, and occasionally all 12 cylinders are running perfectly all at the same time. 2008 was one year where we looked at ourselves and said, "You know, this isn't gonna last forever, where all the end markets are doing well." We've got some good secular markets that have good secular trends going. Then we also know that cyclically, there's gonna be some markets that are just not gonna line up all the time. Through a long period of time, we feel that 3%-5%, you know, if inflation is 2%-3%, and we can achieve 3%-5%, we think that's. Not inflation, the GDP growth is- Mm-hmm is 2%-3%, and we can achieve, you know, 2 times that would be pretty good outcome. One more just on the margins. Clarification point, and I think the answer to this is, it really doesn't matter. JVS, is that inclusive? Are those targets inclusive or exclusive, or so is that a pro forma thing? I think the margins- Yeah. are pretty similar, so it probably doesn't matter, but I've gotta ask. Yeah, the 30 basis points growth is without Jacobs in there. Okay. You're right, they are very similar at the operating income line. JVS is What are the incremental margins assumed for the volume growth then? I'm sorry? What are the incremental margins assumed from a volume growth perspective? The number off the top of my head, it's about half of that. The part for growth and pricing initiatives is gonna be from the volume. The incremental margin, 30%-35%? Oh, yeah. It should be in that high, mid, 35%-38% range. Okay. Thank you. Thank you for waiting, Jeff. You paid attention. Good morning. Good morning. Just maybe speaking of what is Altra-like, can you just talk about what within the portfolio today you think is maybe not Altra-like and would be candidate for divestiture like the JVS business? Yeah, maybe in generality. I think if we have anything that has a high customer concentration, that would be not Altra-like. Things that are more commodity in nature, where it's more price and availability. As we look at the business, there's always gonna be things that are less customized and I would say those are probably the two big characteristics that we'd look at initially is there a high customer concentration where we just don't have any pricing power? Secondly, is it just price and availability that somebody's looking at when they buy the product? If you look at the portfolio, is it It's a small percentage. 20% or 5% of the portfolio that could come out? Oh, it's less than 20. It's probably, you know, 10%. Okay. In that range. Yeah. Okay. It seems like with A&S, you really developed supply chain and, you know, commercial excellence as maybe, you know, the two tools you were missing. Can you just talk about where you are from a maturity level in terms of, you know, developing those, you know, kinda newer tools to the Altra portfolio? Yeah. We have Chris Lundy here, who's the supply chain Vice President of Supply Chain. We'll ask him to answer that. He's got some really good experience, you know, with the Danaher businesses on what a mature company looks like, and now he's implementing those in Altra, so. Yeah. Just from a high level, we're certainly in process of making visits and getting to see the team before the pandemic hit. That slowed us down a little bit, but we're you know continue to, as I talked about, develop and implement systems and processes that we can. We got more work to do, for sure, but we've really made a great start and have a good team that are you know starting to pick up these tools and executing on the processes. Yeah, we're probably maybe in the fourth or fifth inning. We're not in the first inning, and we're not in the ninth inning. That's right. Yeah. Yeah. Okay. From the growth side, I'd say we're early on in that. I'd say we're probably more in the second or third inning for the growth tools. We hired an individual that has really good experience with these tools. We hired him, Dave, help me, was it two years ago? Two years ago, yeah. Two years ago. We've been at it, you know, really getting disciplined about it for the last two years. I'd say we're in the second or third inning on that one, Jeff. That's really exciting. I mean, you put some discipline to that sales, managing the sales funnel. If we can accelerate and increase the hit rate on our on our quoting activity, that better utilizes the salespeople, better utilizes the engineers. That's just a exciting one for me. Hi, Gail. Hey. If I could ask a few questions on the M&A side of things. First off, do you guys have specific ROIC targets when you know, go into a deal? Maybe talk about how A&S has done relative to your initial targets. Then on a prospective basis, when you look at the capital allocation opportunities of, you know, more M&A versus your own stock, and where it's valued, how do you think about, you know, that choice? I'll start, and Todd can jump in. We do have specific ROIC targets, and we have banks help us calculate our weighted average cost of capital, and you get a pretty good range, a bigger range than you'd think if it's math, right? You get a pretty good range on that. We wanna have a hurdle rate above that. We adjust the hurdle rate based on our risk assessment. When we start to look at a company and see how Altra-like it is, and then what's the risk of integration, we will adjust that hurdle rate based on risk. The A&S businesses, I'd say they transformed the company. I mean, in my mind, this company is gonna see a massive return from that deal as we build out these processes. If we can get recognized as a compounder and as truly a premium technology company, you know, it's just gonna have really, really good returns. That's my goal. We're starting to see that. I mean, I think you can see. Gary, you've been with us, you've seen the company for a long time. You can see how different it is today than it was, you know, 10, 15 years ago. It's just a much, much better company. That leads into the third question, which was, you know, your own stock relative to future M&A targets, because it doesn't appear that the stock market's evaluating the company as though it's different from Altra of ten years ago. Correct. You know, up until now, we haven't had the balance sheet in a position where we could, you know, contemplate that. Our goals coming out of the merger were to pay down the debt. Every dollar we had that we weren't using for investment in organic activities was used for that. That's a board decision, so I can't sit here and say what we're gonna do in the future. The board does look at how we are deploying our capital, and how much of it should go to investment in the business, how much of it should go to M&A, how much of it should go to dividends, and how much of it should go returning capital through share buybacks. We evaluate that all the time. I'd say it's a constant review by the board. Just real quick on the battery opportunity you were talking about. Can you just provide a little bit more specifics about what that looks like? I think you said it was mostly China today. Do you have the same opportunity set with the massive EV battery build-out that's taking place here in the United States? Yeah. 'Cause there are build-outs in all parts of the world for battery production. I don't know. I'm gonna let Dave Ebling take that. Yeah. He's ready. He stood up. He's all ready to go. Yeah, China's first, right? You might wanna slide this way so you're on the screen for the people that are. Yeah on the webcast. China's first, and that's where we really dove into the details to figure out exactly where the value proposition is. Yeah, we'll definitely be able to expand that into Europe probably next, North America, I'm assuming after that. Yeah, it's all about finding out where our technology really drives the value for our customers. It can get awfully commoditized, right? It's not a secret, right? This is a high-growth market, so everyone's going in it, so we're just picking our niches, and we'll be able to do that on all three continents. We're set up to produce in all three continents as well. the $10 million in sales that you did in 2021, was that with one customer? Was that going into one factory? Okay, too much detail here. Never too much detail. It was multiple customers growing at multiple, you know, multiple rates, you know, double-digit and actually a couple over 100%. It was broad-based. It wasn't one customer that we burrowed into. It really was about going across the entire industry. It's amazing how many different steps there are. A lot of it, so like web processing, like in paper and film, and each of those steps, even within a particular piece of equipment, some are very, very specific, very technical, others not so much. Picking the technical ones, we could sell, you know, we can add value because of our performance of our products, sell at a higher value proposition, and then let the commodity stuff go to wherever it's gonna go. We have one from our virtual audience from Bryan Blair at Oppenheimer. He actually has two questions. The first is: Is it reasonable to assume 2022-2024 margin expansions weighted to PTT operations? And how does the stronger commodity environment factor into the PTT margin outlook? Yeah. I'll start that. Yes, if you go back to when we first did the A&S merger, we said that a lot of the synergies were going to accrue to the PTT business, and we saw that last year with some of the margin expansion on the PTT side. I think we will continue to see that as we continue rolling out the Procurement as well as the growth tools and roll those out that we'll see greater margin enhancement on the PTT side than the A&S side. Not to say that the A&S businesses won't continue to expand their margin, but more of it will grow to the PTT side. Okay, one more from Bryan. Any potential complications in closing the JVS divestiture related to Chinese regulatory approval, and what is Altra's pro forma China exposure post JVS sale? The pro forma China exposure will. I think we're currently at about $200 million a year. It'll be 150-ish would be our China exposure. I don't believe we have any, you know, specific hurdles to closing JVS other than, you know, it's currently with the regulators, so it's out of our hands at this point. Just from a carve-out standpoint, there are not any issues around IT or embedded systems. There's no regulatory approval requirement from China. The two regulatory Right. Approvals are in the U.S. and in Brazil. Correct. Okay, final one from Bryan Blair before we give the floor to the folks in the room. Can you speak to the size of prospective deals baked into your 2027 revenue goal? Is there a sweet spot or any reliance on one or two larger deals to reach targeted scale? Yeah, I can take this. You know, we doubled the company from $300 million, we doubled the company again. We did it with the A&S merger at the tail end. It took leverage up. If we were to do that same process again and did it in the final year, that would take leverage up well above our targeted range. To stay close to our targeted range, we're looking at acquiring approximately $150 million-$175 million worth of revenues a year, bringing that EBITDA in, generating cash and de-leveraging, and that keeps us right around that higher end of our targeted range, based on that. Now, that assumes, you know, no significant change in market dynamics or, you know, we did factor in things like expected interest rates, but if things change significantly from that, then that could change the cadence of that. A couple more. When you guys think about that pyramid, the technology pyramid you put out. Yep. You've got, you know, level zero is historical. You're now kinda one and zero and one range. When you think about this desire to move up, one, how dependent are acquisitions upon that curve? Then secondarily, when you think about the entitlement from a customer's perspective, where customers look at you and say they're entitled to move up that technology curve, what needs to happen from a mindset perspective, from a penetration perspective or whatever, for them to understand that you've got the capabilities that can go that route and to get the adoption that you guys are looking for? 'Cause there's a lot of other people out there that are competing for some of those spots too. Yeah. My expectation is that we'll maintain our position as a components supplier, and our customers and our customers' customers will perceive us as a component supplier. But where there's interconnectivity, I think we have to have the right internal product development, and we have controllers, as they presented today, that are squarely in that space. If we develop the right partnerships with people doing some of the connectivity and some of the software work, I think we can maintain a really good position with our customers and be, you know, maybe not indispensable. I'd like to be indispensable to our customers, but certainly critical to our customers. I think, you know, I don't see us totally transforming into a software business or becoming an ERP company. That's just, you know, that's not in our line of sight. We wanna make sure that we have the capabilities to satisfy what our customers wanna do, and I think we're doing that quite well right now. In the organic versus having to acquire to move up? I think right now, based on what we're doing, I think most of it's organic and partnerships rather than making an acquisition. I think it wouldn't really fit with us right now, Mike, because you look at some of the companies that are at level three, four, you know, they're going for multiples. Look at what Rockwell paid for Plex. Mm-hmm. Right? You pay a multiple of sales. For us to get into that kinda space, at this point in time, I think we can do it smartly. That makes a lot of sense, so appreciate that. Second then, you know, Carl, you've always been really good at understanding cycle and understanding the opportunity set. Obviously, since we last caught up on the most recent earnings call, there's been a lot of volatility that's materialized in the marketplace, a lot of change from an inflation expectation, what's going on in Europe, et cetera. How do you feel about the industrial cycle sitting here today? How's it changed? And if we do get some growth headwinds in the marketplace, do you think there's enough catalyst within the portfolio to have more of a mitigation points against that versus normal, given all the secular drivers, the investment needs, et cetera? I felt really good about it, and I thought people were being too pessimistic on the industrial cycle prior to Russia invading the Ukraine. I mean, that was, I think, a shock to everybody. Who in this room predicted that Russia would invade the Ukraine prior to them actually doing it? I don't think anybody did. I'm trying to reassess where the industrial cycle is for us. You know, it's certainly impacting Europe much more than the U.S., probably China much more than the U.S. I think we're still in the assessment mode, and kinda depends on what, you know, how things change with that, with that invasion and how people are gonna step up and backfill what's not going on because of that invasion. My guess is your view on a give or take five-year basis, making a number of seven-year basis probably hasn't changed materially. It's just more you've got this gap- Correct. Correct. Gap period that's materializing. Yeah. I'll go back to some of the things that make me feel really good about the next five years if you take out that invasion. You know, there hasn't been a real resurgence in the industrial cycle and a real CapEx expansion phase, you know, for 10, 12 years. Some of these markets that you know just have been underinvested in, and you know, the pandemic is driving some much more move to bringing things back to the U.S., which is gonna require automation. You look at the EV, the drive towards EVs, and there's a CapEx expansion in the batteries and mining for copper. It's you know there's just a lot of indicators that we've got a really good potential industrial cycle barring these you know these hopefully relatively short term you know blips. Then last one. How do you guys think about inflation as a driver for your portfolio? Obviously, you have some end markets where pretty well correlated and have some really favorable impacts from inflation. You have a history of being very good on the price-cost curve over time. Yep. When you think about some of the inflation concerns out there, how do you think about it relative to the opportunity set for you guys? I think on the cost-price side, I think we have demonstrated that we do have pricing power and that we can offset the inflation on the cost side of it. There's sometimes a lag, and we're experiencing that right now, but ultimately, we get paid for it, and we make sure that the businesses you know drive those price increases. On the opportunity side, you know, I think there's some really good opportunity for things like oil and gas. Two years ago, everybody was bailing out. The oil and gas companies weren't investing. Now, you know, there's some. It's becoming less dirty, right? When gas hits $8 a gallon in California, people start saying, "Well, geez, maybe we should be drilling a little more." I think there's already holes drilled. I think there is. Inflation is gonna drive some behavioral changes that I think will benefit us on some of those bigger, longer cycle markets, later cycle, bigger CapEx investment markets. You've had a little more time to think about supply chains and, you know, how you might wanna run the business going forward relative to maybe, you know, a lot of the just-in-time thinking and kinda going down to, you know, kinda single suppliers or whatever historically that a lot of companies were doing. I'm curious if you could, you know, get into a little bit how the supply chain for, you know, for Altra might be different five years from now than it was five years ago kind of structurally. You talked about people trying to bring stuff back to the U.S. and whatnot. I know, you know, you've kind of largely been in region for region. How are you thinking about structurally changing your own business activities on the supply side? Yeah. I think there's a couple things we're doing. One is we're gonna have backup capabilities with alternate suppliers and backup capabilities to make it ourselves if something happens. We really benefited. We have a foundry in Pennsylvania. Some of our competitors didn't. They were sourcing things from other countries, and we benefited from that and saw a really, you know, that business did really, really well through the pandemic as people couldn't get those components. We also were able to support our own production. I think it's really important to have the capability and balance it with subcontractors. I think we're also going to automate internally more. That's why I feel so confident that other companies are gonna do it too because I know it's important for us to do it. It's gonna be important for, you know, other companies like us to do it also. Then things like doing supplier audits and making sure that we have the right suppliers and that they have the right backup plans. We're gonna take our ABS tools and go out to our suppliers and make sure that we don't get stuck somewhere if somebody has a problem, that they've got contingency plans. 'Cause there's some areas where we just can't. We're not gonna have that redundant capabilities, and we're not gonna be able to do it ourselves. We have to make sure we have a risk mitigation plan that our supplier does. Just to follow- Lots of activity. Yeah, just to follow on. If historically kind of improving the supply chain and supply was an area of kind of margin improvement, I mean, it sounds like, you know, to some extent there's additional cost that you're gonna be bringing back into it with having kind of dual sourcing and being able to make it yourself and this and that. You know, is there enough improvement, I don't know, on automation or other areas where you feel like you can still look to supply chain as a margin improvement area? Or is it kind of more of a neutral to the overall margin going forward? No, I think absolutely we can still make it a margin improvement area. The VAVE that Todd mentioned, and I think Chris mentioned it in his presentation, there's tremendous opportunity there where we can, you know, do redesign work to reduce the complexity and cost of components. I think we've got ample opportunity to drive some more cost reduction through the supply chain. We have another set of questions from the virtual audience. How soon would you entertain another M&A deal coming off of Nook? And do you need to complete more divestitures to pursue M&A targets in the near term? Right now we're right around 3 times. We're at the upper bounds of our targeted range. I would say that we need to close the JVS deal before we would contemplate another transaction. Once we close the JVS deal, we'll be down, up, I like to think sub 2, I think. But we'll be right around 2 times. We don't need to divest other businesses to continue doing M&A. The projections we had in there, the only assumption was that JVS would close in 2022. We did not factor in additional divestitures which could accelerate our acquisition activities. All right. Can you maybe just touch on the M&A pipeline and how sourcing opportunities has changed today versus five years ago before you had the A&S business? You have a much broader business today, and you mentioned pushing the activity down into some of the OpCos. Yeah. That's really exciting. I mean, it's hard to describe how that's kind of opened up the pipeline for us. You know, we got into some other product ranges and other technologies that broadens the horizon, but then also getting the people involved that have knowledge. You know, I've been in this industry for 40 years, and I'm still surprised when I get a book that says, "XYZ Company's for sale. Do you have any interest?" I go, "I've never even heard of these guys, and I've been doing this for my life. Where have I been?" It's getting the people involved. They also know the businesses, right? They've been competing against them and participating with them in the industry, so they know which ones are the good companies and which ones aren't. That's a really good driver for us to build out that pipeline. Craig, what do you think we have in the pipeline now? A couple hundred? I think today in our M&A pipeline, there's probably a couple of hundreds targets. Incidentally, you know, that's lower than it was a year and a half or two years ago. As we've started to filter through what's an Altra-like business and what isn't, we've been able to parse that list and really hone in on that we think are the best opportunities. That's at the very highest end of the funnel, and we'll continue to fill that with more and more targets as we continue to refine our processes and our OpCos bring us more opportunities. Over time, we'll be able to start to drive that activity down through the funnel. Okay. I think we have lunch over in the room next door, right? Are you gonna magically lift the wall and lunch will appear? I just wanna thank everybody for coming today. You're gonna miss lunch if you're doing it virtually. It's another good reason to be in person. Anyways, thank you very, very much, and I hope you got a much better appreciation of what we're doing with Altra and where we think we can go in the next few years. Thank you very much. Thank you.