Good morning, everyone. Welcome to Eaton's 2022 Investor Conference. I'm Yan Jin, Senior Vice President of Investor Relations. We're thrilled to have our investors from around the world joining us for today's event. It's our second year meeting virtually, and we really hope to be back together in person in the near future. Today, you will hear about Eaton's progress on our journey to becoming an intelligent power management company. We're proud of the results we have achieved and how we're building a strong future for all our stakeholders. Let's look at today's agenda. We'll start off with our Chairman and CEO, Craig Arnold, followed by our CFO, Tom Okray. Then, our Chief Sustainability Officer, Harold Jones, will discuss how we're making progress on our ESG commitments. We will also hear from our sector presidents, Uday and Heath, on growth strategies and updates to key initiatives in our electrical and industrial sectors. After a 10-minute break, we'll host a Q&A session. We're looking forward to hearing from you and answering all of your questions. Before I hand the stage over to Craig, a few reminders. First, I would like to draw your attention to our safe harbor statements. Some of the information we share today will include forward-looking statements subject to uncertainties outlined in our statement here and in our 10-K. Second, the presentations covered during today's event will be available for download on our website, eaton.com. Finally, if you have questions after today's session, the IR team and I will be happy to hear from you. Feel free to email or call us. With that, I will turn it over to our Chairman and CEO, Craig Arnold. Thanks, Yan, and welcome to the 2022 investor meeting. I think we can all agree that we've become proficient in working in this virtual format, but I'm certainly looking forward to returning to in-person meetings later this year. During last year's meeting, I said there's never been a better time to be an investor at Eaton. Despite the challenges of 2021, today we have an even greater conviction in this statement. As you know, Eaton is an intelligent power management company that's been focused on ESG for many years. We're also a company in transformation with a goal of delivering higher growth, higher margins, and earnings consistency. Last year, we delivered one of the most transformational years in the history of the company. By now, you've also heard us talk about and emphasize the importance of climate change and how sustainability is impacting our industry, creating growth opportunities in electrification, digitalization, and energy transition. It's important to note that we're in the early stages of this growth super cycle, which could run for a decade or more. You've also seen us post-record margins last year, despite historic supply chain issues. We've done this over the last 20 years, and it's a direct result of our operating model, the Eaton Business System. EBS is how we set expectations, drive execution, transfer knowledge across the company, and it works, allowing our operating system and our management teams to deliver what we promise. 2022 will be another strong year of revenue and earnings growth. We're also increasing our midterm financial outlook and now expect higher growth, higher segment margins, and higher EPS over the five-year planning horizon. Now, for those of you who don't know the company well, let me take a few minutes to share who the company is today and how we've transformed over the years, and what has allowed us to deliver the financial results that we've had. Here's a look at Eaton today and our end markets that we serve. As an intelligent power management company, what holds the portfolio together is that all of our businesses manage power. We make power safe, reliable, and efficient. Increasingly, intelligence and connectivity are playing a role in all of our businesses. We also serve a wide range of end markets, as noted on this slide, all of which have attractive market outlooks, driven by secular growth trends and recovery of a couple of our important end markets, and all have attractive margin characteristics. In addition to delivering power management solutions, our businesses share a number of important characteristics that give us the right to win in our markets. They're focused on sustainability and aligned with secular growth trends. The products and solutions we provide are mission critical, keeping your power on, your data flowing, and your transportation moving, which means our products are highly engineered and highly specified and difficult to replace. As a big part of our transformation story, 90% of the profits now come from our electrical and aerospace businesses. We're winning in the marketplace. We win because we have trusted brands. We have a strong network of distribution partners and the necessary application expertise. We also have the required products at the scale required to serve global and regional markets. We see this as a powerful combination that gives us the right to win and the ability to deliver industry-leading returns to our shareholders. We're also delivering for our broader set of stakeholders. None of this would be possible without a team of engaged and passionate employees, which is why six years ago, we updated the mission of the company, defining not just what we do, but why we do it. Our mission is to provide power management solutions that improve the quality of life in the environment. It's rooted in the belief that the best way to serve shareholders is by ensuring that all of our stakeholders, our customers, our communities, and especially our employees, are also well served. Beyond our mission, we have a set of aspirational goals which are noted here. We begin with safety and the wellness of all our employees. Especially important in the light of the pandemic that we've all been living through. Beyond safety, we wanna create an environment where our employees can find their passionate work because we know that's when they do their best work. We also wanna create a company culture that values inclusion and diversity, to be a place where everyone feels welcome, to be the first choice of customers and channel partners. We also understand that we have a responsibility for the communities where we operate, and that we should give back, making them stronger. Lastly, our mission includes taking care of the environment, both in the way we run our facilities, but also through the products and solutions that we create. It's through our mission statement and our aspirational goals that we define what we value, what we measure, and what we do, and it's how we'll deliver superior returns to our shareholders. We're also proud of our ongoing leadership in the area of environmental, social, and governance factors. We publish our ESG report every year, and two years ago, we announced plans to cut emissions from our operations by 50%. To date, emissions have been reduced by 10%, and we have strong momentum across the company. We also had another strong year on safety, reducing our total recordable rate by 7% and our days away case rate by 26%. 67% of our sites have already reached the goal of having zero waste to landfill. We're on our way to 100%. Consistent with our values, we're taking actions to help create a better society by being a corporate citizen, a good corporate citizen. We once again have been recognized for our efforts, being named to the list of 100 most loved companies by Newsweek, a top 50 company for STEM workforce diversity by Ethisphere, and to Fortune's list of the world's most admired companies. Lastly, our governance model ensures that we always do business the right way. This is another area we've been recognized for our leadership and why it continues to be such an important part of how we run the company. I'll end my Eaton overview comments with a summary of our leadership model. You know, a lot has been written about the power of strong culture and how it creates long-term value inside and outside of a company. We completely agree with the sentiment and have created a leadership model that clearly articulates the behaviors we expect from our employees and the things that we'll measure. Taken together, they create the culture of the company. We expect our employees to be ethical, passionate, accountable, efficient, transparent, and learners. We measure their ability to get results, to build organizational capability, to think and act strategically, all while enabling a digital mindset. This is the criteria we use to recruit, to develop, to promote, and we've operationalized it across the company, which means our employees evaluate themselves and are evaluated by their leaders using this criteria every year. The benefits are showing up. They're showing up in high employee engagement scores and increasing capabilities of our teams. I noted in my opening comments that 2021 was one of the most transformational years in the history of the company. As you can imagine, this doesn't happen by accident. It's the result of thoughtful consideration and decisions on the type of company we want to create. This is not new for Eaton. As this chart reflects, Eaton has been around for a long time, since 1911. We're the 15th oldest listed company on the New York Stock Exchange. I suggest that the only way a company can endure and thrive over 110 years is by having a willingness to change. We're a very different company today than we were 50 years ago, 20 years ago, or even five years ago. Through each one of these transformational periods, the company embraced the realities of a changing world and the necessity for us to change as well. In the last 20 years, we've completed over 120 transactions, 76 acquisitions, 50 divestitures, and we've transformed the company. With each transformation, we've become stronger. A company with higher growth, higher margins, and better earnings consistency. We do so by using our strategic and financial criteria to evaluate businesses, those that we're in today and those that we're considering for acquisition. The strategic criteria includes businesses that are leaders in large global markets with technology that's valued and a source of differentiation, serving markets with strong customer and channel affinity, and markets that are tied to sustainable solutions. Our financial criteria is equally important. We're looking for industries with above average growth, for businesses that deliver high margins and high returns on capital that remain attractive even during a market contraction. I add that the criteria is the easy part. The tough part is having the operational discipline to follow through. I think our 120+ transactions demonstrate our resolve and commitment to do what we say. We're a better, more resilient company because of it. The last few years are no exception. We deployed $7 billion to strengthen our Electrical, Aerospace, and eMobility businesses by acquiring businesses that grow in aggregate at 7% a year and businesses with 27% segment margins, while generating $5 billion in proceeds from the sale of slow growth and lower margin businesses in fluid connectors, in lighting, and in hydraulics. We also reduced earnings volatility by joint venturing our North America truck transmission business with Cummins. These businesses collectively grow at 2.5% a year and at 12% segment margins. Taken together, these transactions added 50 basis points to our underlying growth rate and 250 basis points to our segment margins. I'd also note that we've maintained our pricing discipline in the process, paying multiples that were in line with our expectations. Lower multiples than the one that Eaton trades at. As a result, Eaton is a different company today. This chart comparing the evolution of the company over the last 10 years illustrates that point. In 2012, about 50% of our profits came from Electrical and Aerospace, and Eaton's segment margins were 13.8%. Over this period of time, we invested $13 billion in CapEx and R&D, $20 billion in acquisitions, $7 billion in share repurchases, creating a company that will deliver 630 basis points more in segment margin at the midpoint of our 2022 guidance, with electrical and aerospace now accounting for 90% of our profits. Our active portfolio management, coupled with our operational execution, has allowed us to deliver an impressive track record of margin expansion. This chart reflects how our company has performed over time and within our five-year planning periods. As you can see, the company has consistently improved with almost 600 basis points improvement over this period. This chart summarizes margins for Eaton overall, but you see the same pattern for every one of our businesses. We're not done. We have plenty of opportunity to continue to expand margins as we look forward. Our free cash flow track record has been equally impressive. As you can see here, it has steadily improved over the same five-year planning horizon. Our average free cash flow during the 2001-2005 period was $600 million, and it was $2.4 billion between 2016- 2021, an increase of $1.8 billion when you compare these two periods. Once again, we would expect our next five-year period to see additional improvements. As you'd expect, our strong results have translated into very strong financial returns for our shareholders, not just for one year, but over the last 20 years. For the sake of comparison, we charted total shareholder return for one year, three years, and 20 years and compared our results with the S&P, with the median of our peer group, and the XLI or the industrial index. In every case, Eaton has outperformed the benchmarks. We think our best days are still in front of us. Enough about the past. Let's talk about where we go from here, our areas of strategic focus, and what you can expect from us in terms of our financial performance. For some time now, we've been focused on three pillars of a corporate strategy, improving organic growth, expanding margins, and effectively allocating capital. This will not change. Our businesses are tasked with improving their rate of organic growth by investing in technology, including digital, forming strategic partnerships and creating superior value for our customers. Uday and Heath will share a number of outstanding examples of this in their presentation. Second, expanding margins. Here we continue to do what has worked, utilizing the Eaton Business System, driving operational excellence in our factories and functions, and focusing our efforts on those things that deliver the best returns. Lastly, we'll continue to be disciplined in the way we allocate capital, investing to drive organic growth, improving our portfolio through acquisitions and divestitures, and returning capital to shareholders. All three elements of our strategy are enhanced and supported by the digitalization initiatives taking place across the company. In last year's investor meeting and during the course of the year, many of you had an opportunity to hear from our Chief Digital Officer, Aravind Yarlagadda. Aravind is not on the program today but will be available to answer questions. I did think it was important to include a reminder of our digital framework and how we expect to benefit from these initiatives. As you can see from the chart, our team is organized around four key work streams. The first pillar is how we're creating new revenue sources from our intelligent connected products. We're estimating some $500 million of incremental revenue between now and 2025. We're also continuing to invest in our customer and channel-facing processes, where we expect to eliminate inefficiencies, driving 4% improvement in sales productivity. This is largely about how we become easier to do business with. You've all heard about Industry 4.0, an initiative that has become even more important given the current labor shortages. As we digitize our factories and supply chain, we expect to increase the rate of productivity by 5%-10%. Lastly, it's about how we leverage digital technology to increase productivity and effectiveness in our support functions. Each of our functions have a productivity target, which is baked into our annual budgeting process. We expect to see some 10% improvement. As you can see, digitalization is impacting every part of the company, and we expect to see significant benefits over the next five years. Turning to slide 20, I think you'll agree that we've consistently transformed the portfolio. We've expanded margins, delivered strong free cash flow, and have outperformed our peers in total shareholder return. The one area where we have not lived up to our own expectations is in organic growth, and that's about to change. We now expect organic growth to be between 5% and 8% a year over the next five years. This number is up from the 4%-6% target we set last year. As you will see, our businesses have even higher targets. Higher growth because our markets will benefit from very favorable secular growth trends, and higher growth as a result of our portfolio changes and as a result of our organic growth initiatives. Let me begin by highlighting what we see as perhaps the most important secular trends that we'll see in our lifetime. The downstream impact of climate change and technology-enabled connectivity. As we all know, climate change is driving the need to transition from fossil fuels to renewables. Everyone is finally on board with this necessity. Governments, businesses, consumers. Because renewables create electrical power, we need to change what we use to fuel our lives, to move from gasoline-powered cars to electric, to move from gas and oil heating our buildings to electric, from cooking with gas to cooking with electricity. Hence, the term energy transition that you've heard us all talk about. All very good news for electrical companies. On the other side, you have this incredible advancement in technology, which is allowing us to access more and more data. Today, everything is connected or soon will be. As the world becomes more connected, it creates opportunities for new insights, new value streams, new opportunities to improve the effectiveness and the efficiency of everything. We're just getting started. The result is big numbers like those you see here. 50% of global GDP making net zero pledges, 30 billion new connected devices, 57% increase in electricity demand, and 75 million new EV chargers. All strong secular trends that will drive future growth in our end markets. At Eaton, we're focused on three pillars as a way to change the growth rate of the company: sustainability, digitalization, and energy transition. On sustainability, we're requiring that every new product go through an environmental assessment to evaluate how our products will impact the environment and how they will help us accelerate growth. We're requiring our product to be digital by design, that they have built-in intelligence and ability to process and transmit data. An energy transition is where we live. As the world adopts renewables, it will naturally drive growth for our core electrical business. We're also making big investments to participate in new value streams like electric vehicles, electrical charging infrastructure, energy storage, and grid resiliency, just to name a few. We're uniquely positioned to benefit from these secular trends, and you'll hear so much more about this from our presenters today. It's also helpful that many of the core technologies needed to support the future of energy management are common across the company. While we serve eight different end markets, power electronics, energy management systems, advanced materials, and digital design tools are all common. You'll see some real-life examples in Heath's presentation as he talks about what we're doing in our eMobility business and in our electrical connectors business. Uday will take you through the energy transition that's taking place. He'll show you how it's creating an everything-as-a-grid environment and how future building systems will be designed to accommodate the proliferation of electric cars and distributed energy resources. Each of these initiatives is an important part of how we're transforming the company, how we'll deliver more sustainable solutions, and why we expect our future growth to far exceed our past. Like technology, we're making common investments in our front-end tools to accelerate growth and reduce transaction costs. We've been at this one for some time now, and we're already seeing significant benefits as noted here. We began making investments in our digital platform a decade ago, beginning by moving our transactions to EDI and e-commerce, and recently have developed collaboration platforms that allow us to work real-time with our partners. We're now finding ways to use this platform to do digital marketing and to grow the pipeline of opportunities we're pursuing. The big investments are behind us, and we're now focusing on how we leverage the platform for growth. Next, allow me to turn your attention to how we intend to continue to expand margins. We've made great progress over the years and make attractive margins today. We know we can do better. We see the remaining inefficiencies and waste, and we owe it to ourselves to do better. We set a goal of improving margins by 450 basis points-550 basis points over the five-year planning period. This is up 50 basis points from last year. You can think about our margin improvement strategy across three initiatives. First, in how we run the business by using the Eaton Business System or EBS. It's how we set expectations to drive execution, do assessments, and learn. Next, it's through operational excellence in how we run our factories and functions. Here, we've made progress, but large opportunities remain. Lastly, in how we actively manage the portfolio of businesses, products, and markets that we participate in. Shedding low-value activities and doubling down on those activities to create the greatest value. That for those of you who've followed the company for some time, you've heard us talk about EBS. EBS is where we establish organizational expectations on performance. It's the common set of processes and tools that we use to run the company, the way we do performance assessments, and most importantly, how we transfer knowledge across the company. It's also how we make sure the organization is learning and getting better. As you can see from the chart, it's built around four standards. It includes, for example, the way we do strategic planning. It includes the tools we use to drive continuous improvement in our plants and functions. A common way of benchmarking and assessing performance. It ensures that we identify and transfer learnings across the organization. As depicted, you should think about it as a closed-loop process. We plan, we execute, we assess, we learn, which then feeds back into how we plan, all underpinned by our values and our high expectations. Another important initiative for expanding margins is operational excellence in our manufacturing sites and in all our support functions. In manufacturing, it's about how we create world-class manufacturing plants, which we define as excellence in five areas, safety, quality, on-time delivery, productivity, and inventory management. You'll see this metric in every plant, along with the performance commitments for the year and a reference to a world-class benchmark. As we noted earlier, Industry 4.0 is just beginning to take hold in our factories. Between these two, we expect to deliver over $400 million of cost out over the next five years. We expect functional excellence as well. Every one of our functions is tasked with leveraging scale across the company, creating standard work, taking on those tasks that can be done better and more efficiently when centralized, and digitizing repetitive tasks. We've been at this for a few years now, and I'm excited by the next wave of improvement that we'd expect to drive through our digital initiative across the company. Naturally, this is an important part of what we're counting on to drive attractive income margins over our planning horizon. The other important initiative for expanding margins is active portfolio management. This slide represents a simple idea, but it's also an important part of the way we run the company. Some of you have heard me say, this is perhaps my favorite chart. The idea is simple. Do more of high-value activities and less of lower-value activities. What we call grow the head and fix the tail. The truth is that every business, no matter how good or bad, has both a head and a tail. Every business is a normal distribution. There are businesses where you have the right products, the right channel, and high margins. You have the right to win, and you should do more of this. By contrast, every business has a tail. Low-margin businesses that are consuming more of your time than they should, given the returns. The idea is to do more of the good stuff and less of the marginal stuff. We apply this to everything we do, not just M&A. Factories, product lines, market segments all represent opportunities to be thoughtful about what you do and don't do, and what you want to do more of and less of. Every year, we raise the bar on expectations. The third leg of our strategy focuses on how we allocate capital. This is something we continue to do well and where we have a strong track record. We'll have some $10 billion of cash optionality between now and 2025 without issuing equity, and you can count on us to continue to be disciplined in setting expectations for strong returns on capital invested. Slide 31 includes a summary of our capital allocation priorities, and they haven't changed. I think we all know the easy part is making the chart. The difficult part is having the discipline to stick with it. Our first priority remains investing in each of our businesses to drive organic growth. I strongly believe that if you're in a business, you need to play to win every day. This means making the resources available to compete effectively and in every business. Second, we intend to continue to pay an attractive dividend. In fact, we've paid a dividend for the last 98 years. Third, acquisitions continue to be an important part of our growth and margin expansion strategy. We've done over 70 acquisitions in the last 20 years and see it as an important part of how we continue to transform the company and increase our growth rate. Lastly, we'll continue to buy back shares, offsetting dilution and being opportunistic as cash builds up. In turning our attention to financial expectations between now and 2025, here's what we expect. Organic revenue to grow by 5%-8% a year, up 150 basis points at the midpoint from last year. For our segment margins to hit 21.5%, for our free cash flow margins to be about 14%, and for us to deliver 12%-14% growth rate in our earnings. We also expect to continue to see progress in segment margins with Electrical Americas at 22%, Electrical Global at 20%. Aerospace getting above prior peaks at 25%, Vehicle at 19%, and our midterm targets for eMobility is 11% on our way to the 15% target we set for 2030. In closing, I'd like to summarize by saying that we're building an intelligent power management company. We're proud of our ESG track record. It's the right thing to do, and we're a better company because of it, and it will drive growth. Our strong results in the midst of last year's supply chain disruption were a good indication of how much the company has changed. Proof that our portfolio transformation is working. We're not done. We remain focused on building a company with higher growth and higher margins and more earnings consistency. As we look forward, perhaps the biggest change you'll see from us is in our organic growth rate. There are three very powerful trends shaping the future of our industries: energy transition, digitalization, and electrification. When coupled with specific outgrowth initiatives, we think we're entering a growth super cycle that could last a decade. You can continue to count on us to do what we've always done well, using our proven operating model to drive margin expansion. Digitalization is how we'll take it to the next level. Finally, we're raising our midterm outlook for growth, for margins, and for EPS. A forecast we think will allow Eaton to outperform our peers and continue to be one of your best investments. Thank you. Now I'll turn it over to Tom Okray, our Chief Financial Officer. Tom? Thanks, Craig. I'm very happy to be with you today. In my presentation, I'd like to leave you with five key messages. First, 2021 was an exceptional year for Eaton across numerous financial metrics, despite ongoing challenges. Second, given underlying fundamentals, we are confident in our ability to deliver relative to the guidance we provided last month, including our organic growth goals and another year of record margins. Third, we remain keenly focused on supply chain constraints and anticipate significant improvement in the second half of the year. As we look ahead, alleviating supply chain issues will provide a tailwind to growth given record high backlogs. Fourth, we generate significant cash flow and anticipate returning our cash flow margin exceeding 14% and cash flow conversion on adjusted earnings in the mid-90s%. Finally, we're very good stewards of capital and remain disciplined in deploying capital. We are driving growth through our organic and inorganic investments while providing returns on capital through a competitive dividend and share repurchases. For the rest of my talk, I'll recap financial results and guidance, discuss what we're doing on supply chain and the progress we're making on functional productivity, and then I'll go into more detail on capital allocation. I'm extremely pleased with our 2021 results. We had strong organic revenue growth of 10% last year, with particular strengths in Electrical Global, Vehicle, and eMobility. We posted record adjusted segment margins of 18.9%. That's up 250 basis points versus 2020 and reflects 43% incremental margins. It's also 130 basis points over our previous record in 2019. Additionally, we posted record adjusted EPS of $6.62, up 35% versus last year and up 15% from our previous record in 2019. 2021 was truly a transformative year for our portfolio. We completed $8 billion in acquisitions and divestitures. Consistent with our objectives, the acquisition of Cobham Mission Systems and Tripp Lite and the divestiture of hydraulics will result in higher growth, higher margins, and more consistent performance for the company. We continued that transformation in early 2022 with the acquisition of Royal Power, an exciting opportunity to build additional scale and drive growth in our eMobility business as well as applications in other segments. Finally, our total shareholder return of 47% last year compared quite favorably to the S&P 500 and our peers. Turning to 2022, I wanted to provide some context on how we're thinking about our end markets. One key takeaway is that we expect our markets to remain strong in 2022. Starting on the left side with the electrical sector markets, you'll see that all markets are expected to grow in 2022. I'll highlight just a couple of these. We expect the data center and distributed IT market to lead the way with double-digit growth driven by continued rapid build-out of hyperscale facilities. Industrial markets are expected to have tailwinds in 2022 with a significant snapback in energy and mining CapEx, strong global manufacturing activity leading to capacity additions and MRO, worker shortages leading to increased automation, and the beginning stages of U.S. onshoring trend due to ramifications from the supply chain constraints and trade disputes. Now moving to the right side of the chart, the industrial sector markets. Again, generally good growth across the board. Notably, commercial aerospace is expected to be quite strong as the market continues recovering from the effects of COVID. ICE-powered light vehicles show strong growth from a low base in 2021 caused by the supply chain shortages. Finally, electric vehicle markets continue to be strong given the secular trends. Our revenue growth for 2022 is supported not only by these strong underlying fundamentals, but also the substantial year-over-year backlog growth in our electrical and aerospace businesses, driven in large part by the supply chain constraints. As the supply chain normalizes, we expect these backlogs will provide strong revenue tailwinds. Here are a couple of charts showing our orders and backlog progressions for the electrical and aerospace businesses. You can see that each of them grew every quarter last year. For our North American electrical business, approximately 75% of the new orders are non-standard product or project related, and it's greater than 60% for our Electrical Global business. This gives us good confidence in the quality of our backlog. We have a lot of momentum coming into the year that provides a tailwind to growth, and we're off to a good start in 2022. Looking ahead, you can see that there are fiscal stimulus packages in various parts of the world that are driving investment in areas aligned with energy transition, digitization, and electrification themes. These are becoming a more important part of policy, and we will benefit from them. The $1.2 trillion U.S. infrastructure bill that was passed late last year has many parts that will support growth in our business, with 2023 and 2024 being the years with the highest amount of spend. Of particular note is approximately $88 billion set aside for power grid updates and EV charging networks and incentives. We expect these to be particularly helpful to our businesses. In Europe, we just started to see the spending for the EUR 807 billion set aside as part of the NextGenerationEU stimulus. The bill outlines that approximately EUR 240 billion is to be spent on green energy transition, and approximately EUR 160 billion is set aside to be spent on digital transition. In China, the government has set clear goals to lower carbon emissions and set out targets to help reach them. With growth in combined wind and solar power generation capacity over the next decade and strong push to get new energy vehicles to account for 20% of vehicle sales, there will be significant investment in energy transition. Furthermore, the government has laid out plans to strengthen its grid by 2025 to include more wind, solar, and low-emission coal plants. This chart contains the same data that we shared during our Q4 call. 2022 will be another year of strong growth with high single-digit to low double-digit organic growth for each segment. Given our order momentum, backlog, and favorable market conditions, we have very much confidence in this growth. Combined with 2021, we expect 18% cumulative organic growth since 2020. We also expect margin expansion in each of our segments with an overall 40% year-over-year incremental margin. That includes continuing tailwinds from accretive acquisitions and offsets for inflation through price and productivity. The growth of adjusted EPS in 2022 is driven by a few factors. First, we have strong organic growth with strong incrementals. Acquisitions partially offset lost earnings from the sale of hydraulics. Finally, there are a few small items that get us to the $7.50 midpoint of our guidance range. This yields about 13% year-over-year EPS growth in 2022. At the midpoint of guidance, we expect $2.45 billion free cash flow in 2022. This translates to free cash flow conversion on adjusted net income of approximately 83%. Within the 83% conversion, there are four items that I discussed on our year-end call that need to be normalized, including cash spent on restructuring and acquisitions and divestitures to get an accurate picture of our free cash flow conversion. In addition, as we lay the groundwork for growth, our CapEx has been higher than normal. Each of these bring down conversion by approximately 3 percentage points. Finally, a remaining payment for the CARES Act in 2022 will reduce free cash flow conversion by approximately 2 percentage points. Once you've normalized for these four items, we get to a free cash flow conversion of 94% on adjusted earnings. We expect that free cash flow conversion will be in the mid-90s% over the midterm. Continuing with cash flow, we expect continued progress on free cash flow margin and to return 14% in the next couple of years. A lot of that growth will come from additional profit resulting from continued organic growth at solid incrementals. We should also see an uplift as we complete our multiyear restructuring program. Additionally, we will see benefit from several initiatives that are well underway to optimize our working capital. This leads to our discussion on what we're doing in supply chain and functional productivity. Supply chains are on the top of everyone's mind, and it's on the top of ours as well. As we work through supply chain issues that we're seeing across the globe, we're focused on addressing constraints and recovering costs through productivity and pricing. From what we see today, we expect supply chain constraints to significantly improve beginning in the second half of 2022, with the exception of semiconductors, which will still be constrained until 2023. We are using these constraints as an opportunity to make our supply chain more robust in both the short and long term. Our first focus is securing supply. Our team is working closely with all our suppliers to ensure that we have visibility to material availability, and that we have what we need to address the large backlog that we have. We're having ongoing conversations that ensure long-term partnerships with key suppliers. We're also focused on creating a stronger, healthier, and more resilient supply chain with the implementation of digital supply chain systems and risk management processes that will increase our ability to detect problems early in order to mitigate them. Finally, given the ever-changing conditions, we're focused on digital initiatives and increasing our local sourcing to shorten supplier lead times. Where possible, we're also redesigning product lines to use alternative components. These actions will allow us to react quickly to changing conditions. Moving on to functional productivity and digitization. One observation of my first year is that we've just really begun this journey. Too much of our time is spent collecting and compiling information. We have significant opportunities to improve our processes through digitization. Th s will enable our corporate functions to meet the 10% productivity objective laid out by Craig earlier. Another observation is that we have additional opportunities to benefit from streamlining activities within our global functions such as finance, supply chain, and technology. By doing so, we will get cost benefits from scale, plus the additional benefit of faster and more accurate analysis and reporting. In the end, our expectation is that we use better digital tools to compile and report data to free up our people for higher level activities and faster and better decision-making. Now I'll turn to capital allocation. Here we lay out our capital allocation strategy, which lines up well with what we said last year. Our number one priority is reinvesting in the business to drive organic growth. Second is continuing our long-standing practice of returning cash to shareholders by growing our dividend and maintaining a competitive yield. Our next priority is driving inorganic growth in Electrical, Aerospace, and eMobility, continuing the progress that we made in the last year. Finally, we plan to return excess cash to shareholders through share repurchases. Innovation and differentiated products are key enablers to organic growth. In 2022, we're investing over $1.3 billion in CapEx and R&D in sustainable products, with over 90% of our investments enabling reduction in greenhouse gases for ourselves and our customers. We have refocused our R&D with the goal of establishing technology leadership in end markets that have strong secular tailwinds, such as power electronics, energy systems and software, and data sciences. Examples of leadership we're developing in this area include distributed energy resource product development to help both utilities and building owners with the energy transition to renewables, and our large investments in developing eMobility inverters. To achieve leadership in these areas, we're looking to invest around 6% of sales. We expect to invest about 3.5% of sales in R&D, with our CapEx normalizing to approximately historical trends. To ensure that we spend efficiently, we have disciplined stage gate product development processes for all our initiatives. We generate over 1,000 new patents a year. This helps us have an ever-growing catalog of products that we deploy to better solve customers' problems and, frankly, improve our margins in many cases. We have a long history of paying a dividend, dating back to 1923. Our philosophy continues to be to steadily grow the dividend over time. As you've seen, we have increased the dividend even after years where earnings declined, including 2012, 2014, and even 2020. We expect to maintain a reasonable payout ratio of approximately 50% of free cash flow that will allow us the flexibility to invest in organic growth and M&A. Here we show that we've increased our dividend at an 8% annual rate over the past 10 years, and we just announced a 7% increase last week. Our dividend results in a yield that is competitive with our peers at approximately 2%. Our next capital allocation priority is investing in M&A. We have a disciplined process that we've honed during over 75 acquisitions since 2000. An acquisition target has to be strategically attractive and fit our areas of focus and qualitative criteria. I won't repeat the strategic and financial criteria that Craig discussed earlier. Instead, I'm going to focus on the specifics of the financial criteria on the right side of the chart. Overall, we seek to add 1%-3% in our inorganic growth annually on top of our organic growth. Today, that means about $200 million-$600 million run rate. This can, of course, be somewhat lumpy, as witnessed by our acquiring over $1 billion revenue in the last year. Part of the strategic attractiveness of a business will manifest itself in sustainable revenue and cost out synergies. These synergies are us doing more with the business than it had done in the past, leading to higher profit and returns. As part of our approach of being a disciplined acquirer, we target returns of at least 200 basis points-300 basis points over our cost of capital, and expect acquisitions to be accretive to adjusted EPS after two years. These tenets provide a value-creating return to our shareholders. Here I'm recapping our full year guidance, which is unchanged. Since we talked last, we only feel more confident in our guidance. Just to reiterate, 7%-9% organic growth on top of already very strong 2021 growth. Another year of record-setting segment margins of 19.9% to 20.3%. $7.30 to $7.70 adjusted EPS, which is up more than 10% on our record adjusted EPS from last year. $2.35 billion-$2.55 billion free cash flow and $200 million-$300 million in share repurchases. To close, I'd like to bring you back to our key messages. 2021 was a strong year on so many dimensions, particularly growth and margins. 2022 is going to be an even better year with continued strong organic growth along with growing margins and EPS on what was already a record 2021. We expect to see stronger growth as we strengthen our supply chain and constraints are alleviated. Our business continues to generate significant cash flow, which we will continue to invest judiciously. Finally, we remain disciplined on capital allocation with a focus on investing in growth in 2022, both organically and through M&A. With that, I'll turn it over to Harold. Thank you, Tom, our Chief Financial Officer, and hello, everyone. It's great to be with you today at our 2022 Annual Investor Conference, and I have the privilege to share with you Eaton's sustainability story. Before we begin, I'd like to show you a brief video. I wanted to kick things off today with that very exciting video overview of how Eaton is helping drive a low carbon or no carbon economic future while also helping our customers and society. Let's dive into that more and transition into what I'll be covering today. During our conversation, I'd like to talk to you about four things. One is that Eaton has a long-standing commitment to sustainability. In fact, we've been doing sustainability for many, many years. Sustainability is reflected in our mission and aspirational goals, and this focus was sharpened in 2020 when we announced to the world our ambitious 2030 sustainability targets. Second, beyond the goals, sustainability is core to who we are as a company and how we grow, not only today, but into the future. You'll hear more from my colleagues on exactly how we're doing that in the next segments. Third, we're making solid and meaningful progress. Our Eaton Business System, EBS, drives standards and performance excellence. Building on that strong foundation, we have already made significant progress since announcing our targets. I'll share with you some of those results today. Last, trust. We speak of trust in the form of governance and transparency. I can tell you without doubt that our board and senior leadership teams are heavily committed to sustainability and to assuring that we properly govern these processes with the utmost transparency as we move toward 2030. As I mentioned, our commitment to sustainability has been long-standing. What I'm showing here is a decade and a half of highlights that illustrate that commitment, and there are many more. Eaton published its first sustainability report in 2007, 15 years ago. We submitted our first report to the CDP over 10 years ago. Beginning in 2015, we established a goal to be zero waste to landfill, and we've made tremendous progress on that. When the Business Roundtable announced its purpose of a corporation, we were a signatory simply because our aspirations, as Craig Arnold has spoken about before, were 100% in alignment with that purpose and definition. In 2020, we announced to the world with focus and clarity where Eaton wants to be in sustainability over the next decade. More recently, we established a goal around manufacturing sites achieving zero water discharge, particularly in areas around the world deemed to be water-stressed. Now let me turn to our mission and how we're making good on it. Many of us frame sustainability as environment, social, and governance, ESG. We understand environmental stewardship, which is why we've established science-based targets that matter. We equally focus on decarbonization solutions that help our customers fix their toughest sustainability challenges. Of course, inclusion and diversity, developing and engaging our workforce, and ensuring health and safety and well-being are all powerfully captured in our aspirational goals. As for governance, as I said before, our board and senior leadership are all heavily engaged. For as long as Eaton has been around, doing business right has been a core tenet. Of course, we're committed to transparency and reporting to the highest global standards available. With that as foundation, let's turn our attention to how we're approaching solving one of society's toughest problems, carbon. Last year in Glasgow, the world gathered at what is known as COP26, a conference where climate leaders and regulators and others came together to talk about climate change. When the conference ended and all the accounting was done, the nationally declared commitments, which by the way, are the commitments made by countries around the world on how much carbon they're gonna take out, added to a substantial number, 4 gigatons. That, unfortunately, is simply not enough. Science tells us that an additional 20+ gigatons must be removed from the atmosphere each year. That is why Eaton is boldly focused on three powerful priorities aimed at decarbonizing energy, optimizing energy usage across the world. Energy transition, electrification, and digitalization. Again, you'll hear from my colleagues with much more color on these topics. Our focus is in supporting our customers in solving their toughest sustainability challenges. We're not gonna stop there. We're also gonna lead by example by reducing our own footprint. That is why in 2021, we decided to join the Race to Zero, an organization that encourages science-based commitments on carbon reduction, creates decent jobs, and unlocks sustainability. So how are we gonna get there? Our goals are built on our aspirational goals, which touch on many facets of who we aspire to be. We aspire to be a preferred supplier to our customers, to make work meaningful and exciting to our employees, to be strong partners in the communities in which we live and work, to putting our people first by ensuring their health, safety, and well-being, to being a model of inclusion and diversity and active stewards of the environment. Our carbon reduction targets are science-based and aligned with a 1.5-degree future. We're investing $3 billion in research and development between 2020 and 2030 for sustainable solutions. We're committed to volunteering our time and talent to the communities in which we live and work. We're committed to disclose our minority and gender pay equity results. Of course, as I said before, we've established internal footprint reduction goals, including carbon reduction, carbon neutrality, the circle economy with a zero-waste program and zero water discharge. All of these goals are aligned with the United Nations Sustainable Development Goals, highlighted on the right side of the page. These goals set out to comprehensively accomplish what is deemed necessary to sustain human life and society and the environment. Let me add that we're equally committed to transparency, and that's why we've chosen to adopt the highest global standards for reporting. These include the Global Reporting Initiative, the Sustainability Accounting Standards Board, and the Task Force on Climate-related Financial Disclosures frameworks. Let me now turn to how we're thinking about growth through the lens of sustainability. We first start by understanding the mega trends driving the global economy, and this is just a short list of a few things that we consider. One is data and connectivity. I was glad that our first chief digital officer spoke at this same analyst conference last year. Of course, net zero pledges, not only from companies, but from broad industrial groups like the aviation, aerospace industries and others. The acceleration of renewable energy, and of course, what we all experience or are experiencing every day, the explosive increase in more electric aircraft, more electric vehicles, full electric vehicles, and so forth. We take these mega trends as background, and we focus on what our customers need and how we can meet those needs while driving growth for the company. In 2020 alone, Eaton filed over 1,000 patents, which we share with you because it reveals the innovation and energy that our engineers and technical teams unleash every day when they come to work. You will also note that we classify 47% of our products sold as positive impact products. Today, there are no global industry standards for clean technology. That is why Eaton, working with nongovernmental organizations and other partners, have established a positive impact framework. Let me just walk through a couple of those parameters. Of course, each of these products must compete economically, but we also consider energy reduction and optimization, carbon reduction, the reduction of chemicals that are injurious to the environment, public health, and safety. Clean technology focuses, excuse me, on two parameters, that the product reduces carbon and optimizes energy use. Taken all together, these are some of the indicators that we're using to drive our focus on the customer and drive growth in the company. Turning inward to our footprint. Here, too, we're demonstrating strong, meaningful progress. We're moving on our goals toward renewable energy, waste, and water. Today, two-thirds of our manufacturing sites are discharging zero waste to landfill. 11 of our sites have zero water discharge, recycling or reusing every drop of water. Once again, the CDP recognized Eaton at the leadership level. From 2018 through 2021, we have reduced our greenhouse gas emissions by an estimated 9%. We have done that not working in isolation, but partnering with organizations such as the MIT, SHINE for Girls. We have equally powerful relations and partnerships with the U.S. Department of Energy and the World Business Council on Sustainable Development. Turning to some other areas of progress. In alignment with our aspiration to be a model of inclusion and diversity, we realized a new milestone in 2021 with two-thirds of our board of directors now women or U.S. minorities. We're very proud of that, but we're not stopping there. We have goals to improve diversity across our company. Outside, our commitment also extends to suppliers. In 2021, we purchased $650 million in goods and services from small businesses and diverse suppliers. In alignment with our aspiration to make work meaningful and engaging to our employees, we were pleased to see 86% of employees surveyed say they're proud to work at Eaton. In the spirit of our commitment to transparency, we published our first TCFD report, and we are one of a few companies among our peer group to issue such a report. How is the world responding and saying about all of this? While building on the notion of transparency, we report our progress in our sustainability report, talking directly to investors and being active on social media and other communication platforms. The world is taking notice. 3BL magazine named Eaton a Best Corporate Citizen. Fortune magazine named Eaton one of the world's most admired companies. We're delighted again to see Institutional Investor describe Eaton's ESG disclosures among the very best. Reader's Choice named Eaton as a top employer for STEM. These are just a few examples of the recognition we've received. In the last several minutes, I've shared with you our commitment to sustainability, that it is long-standing and will remain so well into the future. It is core to what we do, who we are, and how we grow. As I've shared, we've made solid and meaningful progress, building on the foundation of the Eaton Business System. Of course, our governance and transparency should earn your trust and confidence that we're committed to sustainability and will deliver on our ESG commitments. Thank you. Now I'd like to introduce Uday Yadav, President and Chief Operating Officer of the Electrical Sector. Hey, thanks, Harold. Appreciate it. Hey, good morning. Hope you're all well and staying safe. You know, this is the second year using this format, and while it's extremely efficient, I very much miss the in-person interaction, and I'm hopeful we can put this virus behind us and get back to some level of normalcy and human connection soon. Look, the last two years have been like no other in my career, with COVID, supply chain, and labor challenges, and now what we've seen on our screens the last few days with Ukraine. Our teams around the world have proven to be absolutely resilient, for which we're truly appreciative. With their efforts, we delivered all-time high record margins in 2021. We've accelerated our strategic momentum and gained even greater confidence and conviction in our future growth. Three main reasons. First, we're raising our 2025 revenue target to $19 billion. It's up $1 billion from last year's target because we experienced stronger growth than anticipated in 2021, and we see a stronger near-term growth outlook than we did this time last year. Second, we're entering an electrical industry super cycle. This super cycle will transform the industry, creating a significant growth outlook versus our historical norms, and this confirms, frankly, our everything as a grid approach that we shared with you last year and the year before. Third, as a result, this will expand our addressable market. The topology of the grid is rapidly changing, increasing, of course, the complexity of the electrical system, and we very much like that because that means we can sell more gear, more design services, more support services, all leading to recurring, increasing recurring revenue. We're making acquisitions and forming joint ventures. This gives us access to adjacent markets and allows us to penetrate regional market segments where we have been historically underrepresented. As a reminder, the electrical sector has two reporting segments, four operating groups. We serve customers across six key market segments. Our estimated revenue in 2022, it will be just shy of $14 billion. We had a strong 2021, where we delivered all-in growth, excluding lighting from our base, of almost 14% on organically around 9%. Almost all end market segments grew robustly. In 2021, we made acquisitions and investments that expand our future addressable market by almost $30 billion and position us for growth in our target market segments. Let me show you a few examples. Tripp Lite. We bolstered our single phase UPS business, giving us access now to a $9 billion high margin connectivity market. It delivered nearly 19% year-over-year growth, well above our expectations, and the team is off to a great start. Green Motion. This company gives us a strong foundation for EV charging. It provides a new field of play, and the Green Motion team has launched in six countries as part of our buildings as a grid approach. Our one new JV in China. Our joint venture here has given us access to the tier 3 commercial and residential building markets in China. This has been obviously impacted in the short term by the China construction markets. YiNeng, it makes products for data centers. We had one major product gap in Asia that is now filled, and this JV has allowed us to provide bundled solutions to data centers and win major new business. It saw 22% growth last year and our team just dialed in a $46 million win with one of the top 10 Chinese commercial developers. Really good. Finally, our investment in Reactive. Reactive was a small startup that helps utilities maintain reliability as they add renewables. It pinpoints where utilities could have an inertia problem, and we have a good pipeline now to sell their software and then eventually implement remediation. As we look to the future, we'll continue to grow our revenue and expand our margins. If you look to the right on the graph, the 2025 projection of $16.5 billion, this includes both our organic growth and the Tripp Lite acquisition, a 30% increase from 2021. Now if you look at the green line on the top, you can see how our margins have increased, and it's certainly worth noting that in 2021, on less revenue than in 2018, our margins are 280 basis points higher over this period. You can see we have a solid playbook to further expand our margins. Now let's break down how we expect to get to $19 billion by 2025. As I said, we're raising our outlook because in 2021 we delivered $1 billion more in revenue than we had planned at this time last year as a result of strong organic growth and a good start to our inorganic target. We felt it was appropriate given the future growth rates that we're seeing. With those strong margins, our base electrical business is ahead of schedule. The energy transition that we're focused on is accelerating. We're up 65% over last year and well ahead of the ramp that we had expected. The yellow area is where the digital solutions. It's on track with a lot of capability building. We're expanding our resources and also the product offerings. Energy transition projections have accelerated over the last 12 months. We've now entered an electrical industry super cycle. Globally, EV adoption is now forecasted to be 40% by 2030, up from just 25% last year. Net zero financing pledges that boost energy transition have increased 25x t o greater than $100 trillion over the next 30 years. Then energy storage is forecast to grow 4x higher than 2021. The reason for this is to maximize flex, flexibility and avoid peak charges. This provides tailwinds to our everything-as-a-grid approach. Finally, grid modernization. This infrastructure investment of $73 billion is the single largest federal power investment in U.S. history. As the globe shifts to a net zero carbon energy system, the electrical industry's role will expand to become the central switchboard powering the future. The sources of power will become more renewable, and the uses of power will become more electric. You can see we are right in the middle of all of this change. This complexity is good for Eaton, and it's what we do. It's right what we do and right in the middle. We are well-positioned to lead the evolution of the electrical power value chain and master the complexity that I just talked about. Traditionally, it's always been about managing supply, and now it's about managing demand and distribution, which is Eaton's primary focus, as many of you know. The way the world consumes, produces, and sells energy is evolving. Let me explain. Power will move from being generated centrally with unidirectional flow to decentralized generation with multidirectional flow. The relationships between producers of energy and consumers of energy will change as everything has the potential to become a grid, and safety challenges will increase exponentially, but we have extensive experience. Our focus is on helping our customers simplify the safe transition to a sustainable and resilient digital electrical future. As the electrical industry super cycle accelerates, we will continue expanding our value add to each market segment, expanding our role and the right to win. We see changes on both sides of the meter. Let me start on the right side of this graph, and this is behind the meter. We see a massive expansion of our role as energy management becomes key and electrical systems become more complex. As we add EV, storage, solar, microgrids, and more electrical loads, the end customer now has a much more complex problem to solve and needs our help. To the left-hand side of the screen, that's in front of the meter, our presence with utility companies will help them solve new and challenging problems as the grid topology changes. As you can see, our presence on both sides of the meter affords us an opportunity to provide unique value. Now to market segment growth. These are strong markets, and we have significant outgrowth planned over the next five years. Now, our five-year growth targets across all market segments are driven by a combination of strong market fundamentals and significant outgrowth. Along the top are our six end market segments, and we have used 2020 as the base for consistency with prior years. Now, on the bottom right, you can see our new CAGR of 8.2% versus the 6.2% that we shared at this time last year, an increase of 200 basis points driven by the strong 2021 and a brighter outlook. If we're using 2021 as a base, which I'm sure is in your minds, we intend to grow at 6.6%, up from 5% last year. Not on the chart, but shortening the time frame from 2022 to 2024, our CAGR is 7%. Let's focus on the segments outlined on the left with commercial. This is our largest segment with the greatest degree of outgrowth due to energy transition and digital. Next, residential. Our content per home will increase, driven by code and increasing preference for the smart home. Now utility growth. This will be much higher than historical norms as the grid topology changes. In the orange, data centers and distributed IT continue to be hot with the highest overall growth. Finally, industrial and machinery rounding out our growth overall. Let's take a little bit of a deeper dive into the first three segments. First, commercial buildings. Now, we have a major presence supplying new construction and upgrades in many fast-growing subsegments within commercial, from healthcare to education to distribution centers. Their increasing sustainability needs lead us to project revenue of $4.5 billion by 2025, and that's a 40% increase from that base. Why is this? Let me give you some context here. Electrical consumption will increase over the next three decades. That's clear, despite the efficiency improvements. Second, to limit climate change increase to 1.5 degrees, 50% of the CO₂ reduction target is actually linked to the electrification of buildings. We are right in the middle of a societal obligation that has been at the core of our company for decades. You heard Harold talk about our ESG commitments. To meet this commitment, the building sector has no choice but to be successful, and our role is central. Now the trends for driving growth, these are already in motion. The EU regulations on energy retrofits for existing buildings have almost doubled from 1% to 2% of existing stock. That's a big change. The requirements and regulations for electrification in new buildings are driving electrical content at the municipal level, even in the U.S. You can see this in California. This overall has increased the complexity. Customers are telling us in our conversations that they must decarbonize soon, and we are seeing this more and more and somewhat at scale. Here's just a quick example of how commercial buildings are increasing in complexity. Let's just look at a distribution warehouse, for example, one of our fastest-growing segments. The historic approach was simple. You know, on the left, you back up the trucks, there's a HVAC involved, you can use pen and paper, you can manage maintenance. It's a pretty simple approach. Today, and in the future, there are two important vectors for growth that compound on each other. First, the underlying volume is increasing due to the acceleration of e-commerce. Then second, on top of that, this drives the need for more sophisticated energy management and more of our content per warehouse. If you look at the right, you've now got electric forklifts, heating, robots, EV charging for the fleet. This is a mission-critical operation. Imagine an unreliable power feed can disrupt the operations, impacting service significantly. The larger parent companies have ESG goals leading to the need for microgrids, solar, and storage. The need to optimize the whole ecosystem really drives our services and content. I'll share a case study a little later on. What does this do? This creates opportunities to move beyond our build and commission focus and evolve our role as an energy expert. Today, we participate in all phases of the building life cycle. You see that in the blue circles. Most of our focus is on the build and commission stage of the life cycle. We bundle power distribution, commercial wiring, cable management, life safety, and distributed IT. We're also now bundling larger packages, microgrid storage and EV charging, to support energy transition. The big question is, how do all of our capabilities need to be designed to get the best economic energy outcome for the customer? Well, in the design phase, we provide design services and modeling capability to assist the building owners. We are doing this today with the complexity and the need to create more opportunity to help owners navigate their changing energy needs. On the right, under optimize and maintain, we're adding field services and software like Brightlayer. I'll share an example of where we are doing this with a major EV charging customer in a moment. We have an opportunity now to nearly double our addressable market due to the additional content and expanded role in the value chain. At the bottom of this chart is our base electrical business. You can see it's very healthy, a high-margin engine that propels us. Now add two things on top of this: the accelerating energy transition and the digital solutions and services. As you can see, these are two large addressable markets. The rapid growth of EV charging, microgrids and storage, where we're increasing our participation, creates more opportunity of $15 billion in Europe and the Americas. On the upper right, digital solutions and services is creating another $10 billion market. All in all, a very exciting set of opportunities for us. Here are three examples of how and why we're winning in this segment, and they're each very different. From left to right, first is converting an existing building to a distribution warehouse. In the middle, new construction of a future-ready headquarters where a customer is preparing for energy transition. On the right, an existing complex facility looking to deploy distributed energy resources. Let's start with the example on the left of a large e-commerce customer with a national footprint that's adding a significant number of distribution centers every year. We're using our design services to configure the optimal electrical content and energy consumption. We're helping speed the rollout with rapid design services and deployment of a customized power distribution solution. Now in the middle, this is a new building headquarters for a large financial services company. They were very aware of their future sustainability needs and commitments, and their plan was not to implement right away, but wanted to be ready for the future. We provided the design services for microgrid control and Brightlayer load monitoring, leading to expanded content. Then finally, on the right, we have several projects deploying distributed energy resources in these complex facilities for turnkey projects that increases our content depending on the project, anything from 25%-200%. Of course, we've built a healthy pipeline as well. Now here's another example. Beyond the commercial building, our team is winning major infrastructure projects. This example involves EV fast charging networks. We just won a sizable $40 million follow-on order with our unique, proven, and certified solution that brings together our full breadth of capabilities, creating high barriers to entry, improving customer satisfaction, and reducing costs for the customer. Just for context, the fast-charging network operators around the world are really at the tip of the spear for this part of energy transition. These companies face multiple application challenges during rollout and ongoing operation. This is shown on the left side of the chart. First, they must prevent high peak charges. When multiple cars arrive at the same time during a peak demand period, they can pay financial penalties. They have hundreds of sites in remote locations. They need permit capability to connect to the grid and real-time monitoring on the state of the battery charge to promote reliability. Real estate for these projects is limited, so today's designs need to have a compact footprint. If you move to the center of this chart, this is our robust, integrated solution. To resolve peak charges, you really have two choices, right? Reduce the charge being delivered, which then takes longer and leads to a poor customer experience. You implement a storage solution that allows you to deliver a good charging experience without taxing the grid. This is at the center of our solution, leveraging our power conversion and backup capability. Our power distribution expertise gets power lines from the utility, physically attaches to storage and the distribution panel, leveraging our very important electrical code qualifications. We custom design the energy storage with lithium-ion integrated into a compact outdoor enclosure. Our energy-aware capability that you've heard about before manages and controls the use of the battery charge. Brightlayer then remotely monitors and diagnoses the battery health, distribution, and availability of power for charging. Our design services team that we talked about before does all the upfront design work, configuring the solution, installing it, and provides ongoing monitoring and maintenance. This is a great example of our experience integrating storage into the existing grid topology. You know, working with electrical code enforcement bodies to address safety concerns they have of storage being fed back to the grid, a big issue, solving this peak demand management challenge, and then applying turnkey ownership in an expandable, addressable market. Let's turn to the residential building segment. We provide power infrastructure for new construction or renovations, and this will lead to a $1.7 billion revenue in 2025, an increase of nearly 50% from the 2020 base. Homeowners like you are looking for safety, comfort, convenience, and energy efficiency. Here are the trends driving our growth in this market that you may be seeing in your own home. Safety codes are driving the need for more sophisticated content, like circuit breakers. Second, Wi-Fi connected appliances, lighting, voice controls as smart home devices are increasing, and energy consumption ratings on appliances or LED bulbs are now more common. Then the residential energy storage market is projected to be worth almost $14 billion in 2027. Now, what is less well known is that behind the scenes, the way electricity is distributed and used in your home is evolving as well, and it will provide the foundation for your connected home solutions. Here's your future home. Thanks to the smart grid, you'll need new solutions. You may have a home energy management software, connected wiring devices, storage, smart EV and charging station. At the center of this, all of this is controlled by our smart load center. A smart load center is a critical control point to measure and monitor the use of electrical power in each device in your home. Anything from your washing machine, to your refrigerator, to your cell phone being charged. Our presence at the source of electrical power distribution or the intelligent control panel in your home, and our presence at the use of electrical power through Wi-Fi-enabled devices, puts us in a unique position to win in the connected home. We're at the source, and we're at the end use. This provides Eaton up to five times more value per home. Here's how we're winning. We've expanded our partner ecosystem for smart devices. We've recently announced a number of new partnerships to go to market with companies like Samsung and LG. These companies are standardizing on our solution. We'll be providing a new EV charging circuit breaker that will eliminate the need for separately installed charging box. That's a big change. Your new connected home that you have will enable any new device that comes your way. Let's just quickly zoom in on the sophisticated load center. This, the panel in your home, creates a holistic view of your electricity consumption patterns. It also supports the utilities' demand response programs to help them balance supply and demand. You'll be able to monitor your energy usage in real time through our app. You can see what appliances are using the most energy and when to make changes for home energy management. A fundamental change in the connected home, and we're right in the middle of making this happen. Now for the utility segment. You know, we provide, as many of you know, solutions from the substation edge of transmission in front of the meter to downstream uses behind the meter. We're projecting a $2.4 billion revenue or a 30% increase. This segment is going through a massive upheaval. As the topology of the grid changes, this brings a whole new set of challenges to the industry that are driving our growth. The intermittency, for example, of renewable generation, 60% of new U.S. utility scale generation will be renewable. A dramatically increasing and less predictable load profile will lead to the need for more meters, behind the meter storage and safety challenges. Finally, the need for resiliency in the face of catastrophic events like wildfires, the need for reliable delivery of power and cybersecurity needs are driving a $29 billion infrastructure investment from the Infrastructure Investment and Jobs Act. All of these, supported by a changing regulatory environment, will drive above historical norm growth. This, you know, large and this increasingly dynamic nature of the grid necessitates much more sophisticated modeling and management of the distribution network. Here are some challenges that utilities are facing. First, their ability to support peak demand has been made infinitely more difficult due to the transition from a peaking plant with reserve capacity to virtual power plants. Second is they have to balancing supply and demand in real time, redirecting power to where it's needed, injecting voltage to maintain clean and consistent power to provide stability. Third, increasing weather events. Utilities need to isolate their problems to minimize or contain the impact to fewer people. All of these requirements play to our sweet spot. Now, because we are a leader in next-generation distributed solutions, we are winning as the industry races to address the complexities of the smart grid. Our intelligent, for example, cyber secure recloser revenues are accelerating. This sectionalizes the grid, isolating an outage to a smaller group of customers, improving reliability. Our SF6-free underground switchgear orders are up 75%, in part due to regulations. This improves resiliency and sustainability. For example, we are benefiting from a utility customer who's investing in strategic undergrounding, and one customer recently announced a $20 billion investment in 10,000 miles of undergrounding as a wildfire risk reduction measure, and we see this sort of continuing. Finally, our Brightlayer Utility Suite leads with the software and then pulls in anything from 10-15 times in hardware and services. A really strong play in the utility segment that's gonna propel a large portion of our growth here. Here's an example now of where we're engaged by a major U.S.-based utility customer to help them avoid charges driven, again, by new regulations. Regulations driving change again. Just to give context, as more and more distributed energy resources are put in place behind the meter, the equipment and what can flow back to the grid has to be sized correctly or it can lead to an outage. Historically, installation companies would work with the utility to size their distributed energy resources. When an outage occurred due to the installation or perhaps incorrect sizing, the utility was not accountable for its advice. Well, the regulations changed in 2021, holding utilities liable for an outage due to the deployment of distributed energy resources. Moving to the center of this slide, our ability to model behind the meter usage directly now feeds the utility power models, ensuring a much higher degree of fidelity. We help them reduce their liability and provide a more safe, efficient environment. A really exciting time in utilities in the next several years. Now, the data center and IT segment, as you know, continues to be hot as we spent time on talking about it in the past. As spending on cloud services continues unabated, we provide these critical power solutions for data centers of all sizes, and we expect our revenues to almost double from the 2020 base to $3.7 billion in 2025. This is driven, as you know, by online shopping increasing, crypto, the metaverse, gaming, and consumers will spend almost $480 billion on cloud services this year. That's phenomenal. The $200 billion colocation data center market is on a tear as well. That model is evolving and changing. We expect $250 billion global spending on edge computing in 2024 as that grows, and that's the reason, one of the reasons we acquired Tripp Lite. Here's the data center of the future. You know, we provide a complete power infrastructure and control software, assisting many of our customers with their sustainability goals. For global hyperscale customers, revenue was up 25%, and we continue to invest in capacity around the world and in innovation. If we zoom into Asia, the YiNeng JV provided us a final product, as we said, that allows us to provide a complete package solution, and the customer response has been outstanding, with sales overall up to 22%, and we've broken into many new accounts. Then Brightlayer, which we've talked about, is driving recurring revenue with data as a service. Okay, here's an example. We were engaged by a leading U.S. telecom provider that was experiencing equipment failures and outages. This led to reduced customer satisfaction and higher annual costs. I mean, outages cost them almost $7 million in losses per year. Our Brightlayer Data Centers suite was deployed to help their network operation center monitor their 1,600 sites and 30,000 pieces of equipment. Our solution helps them predict outages before they occur by monitoring voltage and frequency usage. How do we do this? Really, it's our rich history of third-party device integration due to Brightlayer's interoperable architecture and our ability to handle large amounts of data with a scalable database. That really allowed us to deliver. Providing this data as a service, our customer, in this case, experienced a 90% reduction in outages, and we have a multiyear contract with recurring revenue. This is a solid example of how our capabilities are being deployed for revenue generation and how we're continuing to leverage Brightlayer. I want to spend a moment on a new topic, industrial facilities. You know, we're leveraging everything we do to support the emerging role of the hydrogen market energy transition. Just stepping back for a minute, you know, hydrogen solves many key decarbonization problems, as many of you know. First, as a feedstock into hard to abate industries such as steel and cement production. Second, as an end use energy source in the heavy duty transportation sector. Third, as a way to provide long duration storage of renewable electricity beyond the current range of batteries. By 2050, there are estimates that hydrogen can represent 10% of total energy consumption. In the near term, this represents a market for our capabilities that grows around 6% CAGR through 2025. The addressable market is estimated to be $150 billion by 2025. Hydrogen, as part of a net zero objective, is in the early innings. As oil and gas customers pivot to hydrogen production, we think our relationships with them and EPCs will be critical. Well, we know it is. Eaton is really poised to win because of those relationships with the EPCs and the oil and gas majors. The customers recognize our harsh and hazardous expertise, plus our global project execution, and that they'll need all of this to play across the hydrogen supply chain. Also we're looking at a $50 billion project pipeline. It's early, but with rapidly increasing potential. For all of the disruptions the world has experienced, and they've been significant, Eaton has found itself at the right place at the right time. We've delivered all time record high margins. We have the right strategy and a great team. We are confident that our momentum will accelerate into the future. Thank you for your time. Now is Heath. Here's Heath. Thank you, Uday, and good morning. I'm really excited to talk to you today about the future of the industrial sector. The sector story is part of a broader strategy laid out by Craig, Tom, Harold, and Uday, which fully leverages Eaton's scale, unique portfolio, and company-wide capabilities. A couple of months into 2022, there is little doubt our markets are continuing to recover in the short term. Importantly, the medium and long-term growth prospects for each of our businesses is also very strong. That's a direct result of just how well our capabilities are aligned with prevailing mega trends. We have been laser focused on executing our strategy, and we like how we are positioned today. I'm going to walk through several topics today, but wanted to share some key messages. First, as I mentioned, we like how we are positioned. Our portfolio has continued to evolve organically and inorganically. As Craig explained, these changes have created a less cyclical, more profitable, and higher growth portfolio, which is better positioned to take advantage of longer term secular trends. Second, the electrification and sustainability are continuing to gain traction, which has absolutely validated our strategy. Eaton has leaned into these trends, positioning our portfolio for growth. Our vehicle business continues to add more sustainable offerings, while our eMobility business further strengthened its position in the growing electric vehicle market with the recent acquisition of Royal Power Solutions. Finally, our recent aerospace acquisitions are creating excellent near term growth opportunities. As I will explain, we expect significant growth over the next several years. Our industrial sector portfolio is comprised of three world-class businesses, aerospace, eMobility, and vehicle. Aerospace is clearly going to grow significantly as air traffic recovery continues. You'll recall that our eMobility business is our business that supports electrification in mobile markets. Those markets will also be growing significantly as the industry enjoys tailwinds from new regulations and capital investment. Of course, our vehicle business serves customers that continue to push for innovation that supports more sustainable solutions across multiple power platforms, which is precisely where Eaton invests. Each of these businesses serve large and growing addressable markets, which are recovering nicely out of the pandemic. Further, the recent acquisitions of Cobham, Souriau-Sunbank, and Royal Power Solutions have expanded our addressable markets by well over $20 billion, cutting across all of our existing industrial and electrical markets. We will continue to pursue inorganically as well, particularly in our aerospace and eMobility businesses. Focusing on profitability, 2022 will be another strong year of margins in aerospace and vehicle. eMobility profit is still in the investment phase, but margins continue to trend positively. As I will show you in a few minutes, we remain on target for our profitability goals. Just a quick reminder of our 2025 top-line targets, which we have laid out previously. Importantly, we are on target for hitting them. Some of the growth is coming from market recovery, but much of it is coming from outgrowth in our markets. We will absolutely continue to benefit as sustainability regulation and our customers continue to drive demand for our mission-critical products. In fact, by investing in organic growth and product innovation in each of these large and growing markets, and by enriching our business mix with the acquisitions of Cobham and Royal Power, we remain on target for the $9 billion of revenue shown here. I want to give you some details into how the growth in the industrial sector specifically breaks down. As you can see, each of our businesses is outgrowing the market into 2025. The sector is expected to outgrow the market by 300 basis points, driving our 8% organic growth. We will also be shifting our revenue mix over the five-year time horizon from roughly 50% vehicle to roughly thirty percent vehicle and almost 70% aerospace and eMobility. From a bottom-line perspective, and as Craig has explained, about 90% of our profits already come from electrical in our aerospace business. As you can see with this organic growth profile, which is absolutely achievable, and with the acquisitions already completed, we are projecting $8.3 billion of revenue. Again, with continued execution, capital discipline, we clearly have direct line of sight to our $9 billion target. I don't need to spend a lot of time here given Harold's message, but needless to say, investments in sustainability provide great tailwinds for our businesses. These targets and others like them have been a huge driver for our customers as they look for multiple sustainable solutions. It's a massive challenge for our markets and customers, but it creates exceptional opportunity for Eaton. These opportunities are not limited to electrification. They are in any sustainable solution and in all power system architectures, including traditional combustion engines. Eaton has positioned itself as a trusted partner with solutions across the power spectrum, from advanced combustion engines to hybrid engines and to electrified driven engines. All of these market dynamics really come together in our vehicle business, where multiple power management solutions are needed at the same time. Change is happening first and fastest in this business. Overall, our vehicle business is roughly $2.8 billion in sales, and we are a leading player in several product categories that customers need for hitting those sustainability targets I mentioned earlier. Supporting our customers' clean technology transitions is key for our business and what drives opportunities for significant value creation for Eaton. We need to flex, and we need to adapt to meet the needs of our customers, which themselves are learning and adapting quickly to what works best on their particular platforms. When we think about the vehicle markets, our customers certainly expect vehicle production growth in the next few years. There are a couple of other important takeaways from this chart. First, the battery electric vehicle market shown here in blue will continue to grow share to over 18% by 2025, which is of course great for our eMobility business. Second, internal combustion engines obviously are not going away, and we expect those platforms to be approximately 80% of the light vehicle market and over 90% of the commercial vehicle market by 2025. Customers certainly have accelerated investment in the EV space, but they are also actively seeking sustainable solutions for a range of vehicle architectures because of the longer-term transition. Commercial vehicle markets will take longer than light vehicle markets to transition, but more subsystems and commercial vehicles will get electrified sooner. Again, a nice tailwind for us. Last year, we shared some of our progress on 48-volt electrical systems and described how Eaton is helping commercial customers to serve those subsystem electrification needs. Again, our customers are seeking suppliers with an ability to play in all places simultaneously, internal combustion, hybrid, and full electrification. In that regard, here's a slide that serves as a proof point. Sustainable Eaton solutions such as variable valve actuation, exhaust gas recirculation systems, and exhaust thermal management controller shown here help to reduce both NOx and CO₂ emissions in pure or hybrid internal combustion engines. These technologies are not going away. In fact, they're growing. As you can see on this slide, Eaton is already having new successes with our customers, and we expect to accelerate over the next few years as many new programs are awarded. I thought it might be useful to step back and think about the nature of the transformation that has occurred and will occur in this business. Our brand recognition and pedigree for developing advanced, safe, and highly reliable solutions for any vehicle architecture is a competitive advantage. It allows us to flex and meet the major changes our customers are experiencing. As you look at our vehicle business over the longer term, there has been and will be a fairly traumatic transformation to position ourselves for these dynamics. In 2015, our business was $3.7 billion, and the top line was very connected to North American Class 8 markets. As you know, we formed some JV partnerships shown here on the left. It allowed us to work together with our partners and go after new markets, but it also reduced our top-line exposure to North American transmission markets, which will be single digits by 2025, down from roughly 25%. By 2025, 25% of our revenue will instead come from the electrical space, and total revenue with the eMobility shown here will be $4 billion. Carrying out to 2030 and given our investments in new sustainable technologies, we absolutely have line of sight to $6 billion combined revenue, not even counting unconsolidated revenue from the joint ventures. Half of that revenue, as you can see on this chart, is coming from our fast-growing eMobility business. Now I'd like to turn attention to that part of the strategy, eMobility. Clearly, the electrification trend in mobile markets is accelerating. As we look forward into 2022, we are at an inflection point for growth in this business. We launched eMobility four years ago. We continue to like the attractive future market growth profile this segment brings to Eaton, with the addressable market growing substantially to around $60 billion by 2030. One of the primary reasons for us entering this electric vehicle space, namely leveraging our vehicle domain expertise with our electrical sector capabilities, continues to be a strong competitive advantage for us. As I described last year, we are developing this technology at scale first in vehicle markets, but our expertise in power electronics, power distribution, and powertrains will also scale at some point into commercial vehicles, off-road vehicles, vertical take-off and landers, and other aerospace applications. That dynamic is described here on this slide. We continue to leverage our organizational scale from our electrical sector and our resources across Eaton to advance the effort. Since launch, we have achieved roughly $800 million in mature year program wins. Our pipeline of opportunities also continues to increase. In other words, the dynamic we expected in the market when we launched eMobility is in fact happening and even accelerating. That dynamic is particularly exciting at Eaton because of our unique portfolio. Our applications vary across our mobile end markets, ranging from aircraft to passenger cars and commercial vehicles, markets we have been reliably serving for decades. As we've explained over the last couple of years, as these market segments adopt electrification, whether hybrid or all electric, the electric power chain will be fundamentally the same. The power is stored and sourced. The electrical power is then managed safely and distributed in the way to fit the needs of the specific application. It is then transported to the location where needed with high reliability and minimal energy loss. It is used to drive efficient propulsion, or, and this is an important point, it could also be used to actuate systems on the platform. Maybe not propulsion, but other subsystems may need to be electrified on something like a commercial vehicle, for example. Our outlook hasn't changed. Our power electronics and software expertise cuts through all the Eaton markets, mobile and industrial. Our eMobility business is simply about leveraging those core building blocks across multiple mobile markets with the light vehicle market going first at scale. eMobility is the platform for scaling our electrification expertise. As we think about eMobility in the specific vehicle context, it has traditionally focused on power management and power transmission. With the acquisition of Royal Power, we now are able to address connection. Electric terminals and connectors are everywhere on the vehicle and a great addition to our portfolio. More to come on Royal Power in a couple of minutes, but essentially, Eaton's portfolio is now positioned around four product families, power electronics, power distribution and protection, powertrain, or we call it e-powertrain, which includes EV gearing and transmissions, and now terminals and connectors. Again, I'll touch on terminals and connectors when I talk about Royal Power, but with respect to the other three areas in which Eaton competes, you can see on this slide we have key wins in each. For example, we are launching a $250 million+ high voltage inverter program with a large European manufacturer. We are also having success with our electrified powertrain. This is an example where we are leveraging our traditional vehicle gearing and powertrain expertise to obtain a key win with a North America OEM. Finally, we are continuing to capitalize on innovation and power protection, securing two significant wins with our Breaktor solution, the industry's first resettable device for switching and protecting electrical loads on vehicles. In fact, Breaktor brings to life in a single product the competitive advantage of Eaton's company-wide capabilities. A lot of the foundational development work was done by our Electrical sector's breaker and relay teams in Europe, and our eMobility team has been able to take that innovation, developed in the Electrical sector, and drive it into vehicle applications. Please take a look at this video describing Breaktor. Electric vehicles, they're a powerful solution for today's mobility needs. Yet their high voltage systems bring challenges of their own, like the need to safely and reliably protect people and the EV system itself. Coordination between EV components that enable power and protect power is critical. If the fuse is sized too small, an overcurrent event can occur. A fuse that is sized too large can lead to a high temperature overload. Either can leave a driver stranded. Rising to the challenge is Eaton's Breaktor, an elegant two-in-one solution designed to replace both the fuse and contactor found in traditional EV systems. This multitasking unit, housed in the power distribution unit, not only performs basic switching functions, but also provides faster, more reliable protection from the full range of possible overcurrent and short circuit situations. In fact, Breaktor enables the reduction of up to 15 total components from the PDU assembly, decreasing complexity and system-level costs. There's really three basic functions of the Breaktor. The first one is really the switching mechanism. During normal operation of the vehicle, the device can switch on and off. The second mechanism is the protection piece. This is where the current sensor within the Breaktor is able to identify an unsafe event and is able to shut down power within the vehicle. The third mechanism that the Breaktor has is what we call a crash safety prevention mechanism. The Breaktor, in addition to protecting against that high current event, it can also shut off and isolate the battery in the event of a crash. Another key feature is that it's a resettable device. The Breaktor can be reset many times, even after very high current level events. Breaktor is a tremendous component to be able to solve the coordination challenges within an electric vehicle. One of the other areas where Eaton really can be differentiated is not only do we offer the component, but we can also integrate that Breaktor component into a larger power distribution system, which might have alternative function like protection, like switching, like isolation detection, like current sensing. We can take that component and install it into a much more complex system to be able to address the needs of our customers at a larger level. Exciting stuff. It demonstrates precisely the kind of competitive advantage Eaton enjoys with its unique portfolio. If you now migrate from a component view and think about the broader system, you can see the same dynamic at play. Uday has discussed the trend of everything as a grid. Well, the idea of using an electric car to power loads, particularly powering a home during a power outage, for example, is quickly gaining interest from car manufacturers and homeowners alike. Certainly, we can all see the potential value of a vehicle-to-home or vehicle-to-the-grid convenience, safety, avoidance of upfront costs that a generator might demand, for example. Vehicle-to-grid enables EV owners to earn revenue from the utility while helping balance the grid, while vehicle-to-home eliminates the need for a backup generator. Simply put, a vehicle-to-everything energy transition could be quite valuable. Among the biggest challenges facing this concept include the lack of a market-ready scalable technologies that can enable bidirectional power flow, both on the vehicle and off. Eaton, given its portfolio, can scale investments in both our vehicle and electrical sectors. We are developing technologies such as battery distribution units, power distribution units, and onboard charging products that can communicate and work seamlessly in a broader Eaton product ecosystem. In other words, we can capture value by taking advantage of our unique portfolio to better manage power flow between both worlds, on-vehicle and off-vehicle. Our strategy isn't just a long-term vision, it's starting to manifest itself in near-term growth profiles. In fact, eMobility is poised for rapid growth as we are on target for $1.2 billion by 2025, with approximately 80% of this revenue already booked. Notably, as I mentioned earlier, our pipelines continue to grow as more capital continues to flow in this space. As you can see, we are also anticipating a significant shift in our business mix towards high-voltage offerings, ramping up from roughly 25% today to approximately 60%. We remain on track for $2 billion-$4 billion by 2030 with an operating margin of 15%. The last thing I will note about this slide is you can see there the introduction of Royal Power Solutions into the growth equation. I'd like to shift the discussion and spend a little more time to introduce you to Royal Power Solutions. We are thrilled to bring Royal Power Solutions into the Eaton family. The new team and portfolio are fantastic. We love to play where there are significant intellectual property and mission-critical applications. That is exactly what Royal Power is, and we think it can be a key growth platform for us. As we described previously, Royal gives us capability in terminals and connectors with a portfolio of highly differentiated products. The offerings from Royal are used in many power distribution units and power electronic systems that eMobility is offering today. Its products can also serve other Eaton-wide end markets, creating an opportunity to leverage technology across both sectors. Focusing on the vehicle space for a moment, and as you can imagine, electrical connection is a critical technology as mobile markets become electrified. Here's a graphic showing the inside of a typical power distribution unit, which is a system that Eaton sells to electric vehicle OEMs today. Visually, you can see how Royal Power Solutions' product portfolio of terminals, eyelets, and busbars, shown here in green, is a great fit and complementary to both our component-level offerings of a Breaktor or a fuse, and also the system-level offering of a power distribution unit. This creates tremendous design, cost, and scale advantages. In fact, Eaton content on a power distribution unit has more than doubled since the acquisition. Importantly, Eaton is now also positioned for the trend in vehicles towards more connections. We estimate that connection points on the vehicle will grow by roughly 40% in next generation platforms. Two innovations by Royal that we are particularly excited about are High-Power Lock Box terminals and RigiFlex high-voltage busbars. High-Power Lock Box terminals are truly game-changing technology, which is more efficient than competitive products at higher current levels, extending the life of the battery. This is a patented technology that meets strict harsh and hazardous environment standards that existing products on the market are simply unable to achieve. RigiFlex is a high voltage busbar technology that uses one continuous piece of material. It minimizes design time and lead time while enabling complex geometries. Customers can have more compact system level designs for their battery, power distribution unit, and inverter. As you can see, both of these technologies are being adopted by major customers, which certainly demonstrates the opportunity in front of us as we start to take these products into the broader Eaton channels and customer relationships. With our broad portfolio of solutions, it's easy to see that we are well-positioned to increase our content per vehicle. In this chart, we are using our content per vehicle on a traditional internal combustion engine platform as the baseline and comparing it to our expected future content per vehicle once our eMobility business is at scale. As you can see, the numbers are clearly compelling. You may recall, this isn't the only acquisition we've done recently regarding connector technology. At the tail end of 2019, we acquired Souriau-Sunbank, which also offers patented technology in the aerospace connector market. With the acquisitions of Royal Power Solutions and Souriau-Sunbank, Eaton is now very well-positioned to meet customer needs for electrical connectivity across a wide range of end markets. We will continue to look for bolt-on acquisitions where we can acquire differentiated technology with broad applicability across Eaton. In this particular case, we think there's at least a $20 billion connector market opportunity across all of Eaton's end markets. In each of those markets, Eaton can not only play as a solution provider for the component connectors themselves, we also offer a system-wide electrical expertise behind the connector. Let me change gears and discuss our aerospace business, which should experience near-term and long-term growth as our markets recover. It's more than a market recovery story. With our recent acquisitions, we've also clearly changed the fundamental growth profile of this business. Our aerospace business will be roughly $3.2 billion in sales this year. We continue to like our position, steady market growth from here, long cycle industry, advantaged technology position, sole-source content. Our business is expected to demonstrate strong organic growth from 2025, driven by content on ramping growth platforms and a strong focus on our aftermarket. Again, of course, we've added to our core products like hydraulics, fuel, sealing and conveyance with the acquisitions of Souriau and Cobham in the last couple of years. While the recovery of the commercial market could come sooner or later, we are anticipating the recovery of air traffic in the 2024 time frame to pre-pandemic levels with favorable longer-term growth as the pandemic restrictions ease. We have already seen strong recovery in domestic U.S. travel while international travel markets remain pretty sluggish, obviously. Overall, the military markets have remained flattest, but we are on several key platforms. On the right, we show some of these defense platforms and their growing build rates over the next few years. This slide shows in more detail why we like our position. With our recent acquisitions, we have greatly increased our content on the KC-46 and the F-35, for example. Those platforms are critical to long-term defense readiness and a strong budgetary support in Congress. In sum, our organic and inorganic growth focus has put us on some fast-growing, long life cycle platforms in critical applications. The growth story for our aerospace business is really that simple. The numbers are compelling. When you look at the bigger picture, given our portfolio changes, our aerospace business has also undergone a fairly dramatic transformation. The combination of Eaton and Souriau has, of course, created new opportunities for growth in U.S. aerospace and defense markets, but also in various industrial end markets in the emerging area of space. Cobham Mission Systems has created more portfolio opportunities in space as well, and key product areas like air separation modules for fuel inerting. Not to mention the combined fuel expertise in our engineering teams that allows us to design a complete fuel system offering for next-generation platforms. As the markets recover, we are on the right platforms with the right products. As you can see, this is driving substantial short-term growth for Eaton. In closing, I hope you take away the view that we are continuing to take disciplined and deliberate actions to improve our portfolio and position our business for growth. Our franchises are stronger than ever. Vehicle and eMobility are well positioned to provide our customers with sustainable solutions across the spectrum of traditional, hybrid, and all-electric platforms. Aerospace has industry-leading margins with a more balanced and diversified portfolio, resulting in great growth prospects going forward. Finally, importantly, our portfolio strategy allows us to build electrification expertise and then scale that expertise across multiple platforms to compete and win. Let me thank you for your time and attention, and I will turn it back over to Yan, who will help handle the transition to Q&A. Thank you. Hey, thanks, Heath. We'll take a 10-minute break. For anyone who wants to ask a question, here are the instructions. Please keep in your mind, if you do not wish to ask a question, you can stay on the webcast. See you in a little bit. Ladies and gentlemen, thank you for standing by, and welcome back to Eaton's 2022 annual investor question and answer session. If you wish to ask a question, please press one then zero on your telephone keypad. You may withdraw your question at any time by repeating the one-zero command. If you're using a speakerphone, please pick up the handset before pressing the numbers. Once again, if you have a question, you may press one then zero at this time. I would now like to turn the conference over to our host, Senior Vice President of Investor Relations, Mr. Yan Jin. Please go ahead. Hey, good morning, guys. Thanks again for joining us today. For the Q&A section today, please just limit your opportunity to one question and a follow-up. Again, thanks in advance for your cooperation. Now let's start the Q&A. Thank you. Our first question will come from the line of Nicole DeBlase with Deutsche Bank. Nicole? Can you guys hear me? Yeah, now we know. Okay, good. I don't know what happened there. Sorry about that. Good morning. I guess, starting with organic growth, I think, you know, the 5%-8% CAGR compares to, like, 8% growth in 2021 and 2022. There's some concern that you guys are embedding some substantial slowdown in the rest of the forecast period, if you could just talk to that. Hey, no, appreciate the question. I would hope that you come away from today's presentation like me, just absolutely excited and thrilled by the growth story that both Uday and Heath took you through. I think it's, as I said before, an exciting time, you know, to be an electrical company and even more exciting time to be part of Eaton. Yeah, I think the easy way to think about, you know, what appears on the surface to be a little bit of slowdown in growth is really a function of what we're dealing with right now coming off of, you know, the pandemic-induced market kind of retrenchment, as well as the fact that we've been living in an inflationary environment over the last couple of years. If you think about the underlying growth rate in our businesses, we're actually not seeing any slowdown in growth. In fact, probably a bit of pickup in the growth rate, but it's really this function of the base that we're comparing to beginning in 2020, markets recovery, as well as the fact that we've been living in this inflationary environment. We don't anticipate the same level of inflation as we move forward. The actual growth rates would be improving, but for those two dynamics. Got it. Thanks, Craig. I guess, just to clarify on, in your part of the slide deck, you guys have like a 12%-14% EPS CAGR, and it didn't specify over what period that was. Is that also like 2020 to 2025, or is that just your annual target for EPS growth? Yeah. That's really beginning in the 2020 period. You know, one of the things that we do, Nicole, is we have these five-year planning periods for the company. We always talk about our targets, whether it's, you know, revenue growth or EPS growth in our five-year planning horizon. That's really the way you should think about it. Okay. Thanks. I'll pass it on. Thank you. Our next question comes from the line of Nigel Coe with Wolfe Research. Please go ahead. Thanks. Good morning. Thanks for all the information, by the way. It's just really helpful. Just wanted to look into the kind of dig into the electrical margins. You know, obviously 20% for global, 22% for Americas is pretty good levels, but 50 basis points above where we are in 2022. Just wondering if there's accelerated investment spend, maybe you know increased scope of you know the design and build phases is causing a little bit of margin crimp here. Is there any color in terms of you know what's you know why are we only seeing 50 basis points of margin expansion over the next three years? Yeah, maybe I'll go first, Nigel, then we'll let Uday jump in. You know, one of the things we try to do is we think about, you know, laying out our, you know, five-year plans and, you know, it is a five-year planning horizon, and we try not to get too far out in front of our skis. So we like to deliver things. Then as we deliver, we like to take, you know, the numbers up and take commitments up. So I think the way you should really think about this guidance in general is that, yeah, we set, you know, goals for the five-year period. We've made significant progress. We are ahead of schedule in growth. We are ahead of schedule in margins. What you should really think about this year as an interim checkpoint where we've said, "Hey, based upon the fact that we've made progress, we've taken the numbers up." I would hope, you know, based upon, you know, all of the great work that's taken place in the businesses that, you know, as we talk next year, we'll probably be able to adjust those numbers again. I just really think about this as, you know, until we've done it and delivered it, you know, we're trying not to get too far out in front of ourselves by putting numbers out there. As you know, we dealt with, you know, big uncertainty in 2020 with COVID. At this point, it's not quite 100% clear what kind of inflationary and labor environment we're gonna be dealing with looking forward. You can really think about that as just us being prudent in terms of the way we've set those goals. Yeah. I understood. Then my follow-on is on eMobility. Really just, you know, digging into, you know, Siemens exiting the Valeo JV. I guess I was a little bit surprised, but maybe it's because, you know, these businesses are best served by existing suppliers. Given that, you know, you do have a, you know, a legacy auto business, just wondering if you could address two things. Number one, how does your eMobility business today compare from a technology or a product perspective versus some of the players like Valeo and others? Then secondly, maybe talk about the importance of having that legacy auto business. Sure, Nigel, this is Heath. Thanks for the question. Really important question. You know, as we think about the eMobility business, you know, we've largely played and will continue to play more in the component space where we offer, you know, innovation relative to our competitors. You see a lot of capital flowing to what I would call, you know, drives, motor inverter controllers. I won't speak to specific competitors, but there's a lot of capital flowing to what I would call, you know, drives, motor inverter controllers. We're not participating in that space of a packaged motor drive. We do have some inverters, but it's a component, and we're agnostic to the OEMs in that way. We're not seeking to compete with the OEMs on the drives. We're seeking to add value in their electrical systems. As I mentioned in the presentation, you just heard that, we're really focused around those four component areas of power distribution, terminals and connectors, what I would call e-power drives, which are, you know, gearing and torque, and then terminals and connectors. We're finding a lot of traction in those four different spaces. We're not going after the same motor drives that a lot of our competitors are going after. I think on the second piece around the vehicle business You know, we're seeing a lot of traction working together with eMobility and vehicle. When we walk into an OEM on the commercial vehicle side and they wanna talk about 48-volt systems, they're talking about 48-volt because they need to electrify more of their systems, but at the same time, they still have combustion engine needs. The fact that we can talk about variable valve actuation and a 48-volt system and a fuel burner or an e-heater critically important to these system engineers as they talk about all of the requirements that they're gonna need to hit in the mid-2025, 2026, 2027 timeframe. We're seeing a ton of traction in our pipeline and opportunities because of that pedigree and the combination of those two businesses. I would also add, Nigel, to the point that you raised. I mean, I think I do think, you know, one of the things that you mentioned, that we are unique as a company in the fact that today we are a player in the vehicle market, we are a player in the electrical market, and so you know, we have a seat at the table with all of the global OEMs. It is a big leap if you don't really understand the customer and the application, taking high voltage electricity, putting it on a mobile platform if you've never done it before. You know, that's not necessarily an easy thing to do, which is why you probably have seen some of these other companies look to partner, where we have in-house these capabilities. I do think that our value prop is unique and different than some of the other competitors in the market. Yeah. Okay. Thanks, guys. Thank you. Next, we go to the line of Josh Pokrzywinski with Morgan Stanley. Please go ahead. Hi, good morning, guys. Thanks for the detail today. Craig, just on the electrical outlook here, you know, in the raise versus last year, how much of that should we think about as price, if any? Then I know, you know, you wanna monitor and adjust that 22% Electrical Americas number as you go, but is there sort of like a known gap today as you think about, you know, some of those big raw material inputs that, you know, probably normalize at some point? You know, maybe not soon enough to bake into 2022, but, you know, thinking about the next couple years and normalized supply-demand there. Yeah, I'd say, Josh, I mean, I do think as we think about the margin question specifically is that, you know, we'll monitor this as we go along, but there's absolutely. There's nothing that we know about today that say that there should be some sort of governor on our ability to deliver, you know, attractive incremental margins on growth. Now, you know, now having said that, we are having to invest more in the business. I mean, this growth doesn't come for free. We are putting more investments in R&D. We're putting more investments in capital as we, you know, are preparing the company to deal with this growth super cycle that we talked about. There is, in fact, more investment going into the business, which has a little bit of a damping effect. Largely, this is simply around, once again, you know, once we get to the number, we get a little closer to the number, we'll take a look at it and probably then have a lot more confidence in taking the number up. There's nothing specific in the business that is creating any concerns. To the point around price, I mean, we have price certainly built into the, you know, the 2021 numbers. We obviously got significant price in 2021. We'll get price in 2022. We really are anticipating that price normalizes, you know, in the out years. There is not a lot of price in the out years in that forecast. Woody, did you wanna add anything to that? Yeah, sure. Let me just add to Craig's comments, add a little bit of color to the numbers that we shared. Just to rewind a little bit, the $1 billion that we're ahead of as a result of this year are a part of two areas. One is around $500 million linked with increased volume and some price. The other half a billion was related to the Tripp Lite acquisition, which grew more than we expected. That's why when you look out, additional half a billion of organic growth is linked largely to our improving outlook on organic growth rates. As Craig said, the price part of it is fairly normalized as you go in the out years. To Craig's point earlier, just to re-emphasize some numbers, we are increasing our R&D as a percentage of sales to historically high levels, and 40% of our capital investment in the business is going towards growth. Both points, just adding a little more color to what Craig said. Got it. That's helpful. Just to follow up here, I guess more broadly on incentive comp. You got a lot of new initiatives. Certainly, the market's evolved a lot in the last couple years with electrification and energy transition. Still, at the end of the day, you guys are an industrial company, so like, free cash flow growth is, you know, important as well. Like, you know, Harold talked about the ESG initiatives. How would you sort, you know, talk about the shift in how management is being, you know, kind of evaluated and compensated given, you know, some of these new, you know, kind of vectors that we're talking about today? Yeah, no, appreciate the question, you know, Josh. In terms of, you know, the basic outline of our comp plan really doesn't change in terms of as we define, you know, what percentage of the profits that we share, you know, that we generate, do we share with the management team. It's still really focused largely on, you know, earnings growth and cash flow growth and total shareholder return. We think those three metrics are really the right metrics to really drive the right behavior and really to make sure that, you know, management's interests are aligned with the shareholders. Now, underneath that, in terms of as you think about how do we evaluate our businesses, how do we evaluate our leaders, we clearly, in that case, have metrics that we're measuring around ESG. You know, whether it's, you know, safety or the products that we're investing in, you know, as Harold talked about in his presentation, that each business has a goal to invest a certain amount. Every business has to go through a screen as it relates to how does it impact, you know, sustainability? How does that impact growth? It's fully baked into the measures of our businesses and in the individual performance assessments. In terms of what defines the pool of dollars available, we think it's best to keep that really focused on the things that we think shareholders ultimately value most, which is cash, earnings, and total shareholder returns. Josh, I could hear your voice, and Craig, if I could maybe just add a comment. Exactly what Craig said, but just a little bit more color underneath all of that. Annually, the chairman puts our goals. We all sign up to those goals. Among those goals, for example, are a commitment to drive NPI through a sustainability lens. We look at that very carefully. Our technology teams, our operating leaders all take a look at that. We have goals around operational excellence when we talk about footprint. Those are looked at. I can assure you that Heath and Uday in their quarterly operating reviews, maybe daily reviews in some instances, are looking at those very carefully. All of those add up, annually to individual performance ratings, and just as Craig described, impacting how we drive our focus on sustainability. Hey, thanks, Harold. Thanks, Craig. Appreciate the color. Great. Thanks, Josh. Thank you. Our next question comes from the line of Andrew Obin with Bank of America. Please go ahead. Hi, yes. Good morning, guys. Good morning. Morning, Andrew. Just a question on portfolio management. You know, electrical and aerospace now represent 9% of the profits. How does vehicle continue to fit within the portfolio? Yeah. I almost wanna push replay and say, you know, Heath, you know, maybe go back and do your presentation again. I'll give it for Heath now. Well, you know, I would say a few things. One, as Craig and Tom have indicated in the past, we'll, we're gonna constantly evaluate our portfolio, and we will stay nimble, we'll stay flexible, and, you know, we look at this question often, not just with respect to segments, but businesses within our reporting segments. We're, you know, as you know, we're fixing the tail constantly. We've done that in this business. We've done a lot of heavy lifting in the vehicle business already as we looked at this years ago and made a lot of traction with respect to bridging the vehicle business to the new realities and the new world in a high-growth market. That includes, you know, the divestiture of the conveyance business. It includes forming the JV with Cummins on the transmission side, and we formed other JVs as well. We've done a lot to the portfolio already. Now it feels like, Andrew, that we're really at a fulcrum because we're having customer discussions around sustainability. The way I think about this business is it's a sustainability business. Our customers need us to meet these CO₂ and NOx standards coming up in 2026 and 2027. A lot of our investments, the majority of our investments are going into these very innovative, sustainable technologies to help our customers bridge the gap. When you think about 48-volt systems, for example, those are investments we're making to help our customers in the next generation of their platforms. Gearing, torque, these investments are gonna help engine brake, variable valve actuation. All of these technologies apply in a hybrid world, which we will be for the next 10-20 years in many of our markets. As we go talk to our customers, having the ability to talk about vehicle and electrification at the same time is really, really important. I think if you look at Craig's slides that he presented today and described around how we think about our portfolio strategically and financially, you know, this business hits the marks right now. It's a market leader. We have innovative solutions. We have the right to compete and win, and at the same time, it has high financial standards. We're targeting, you know, 18%+ margins this year. So we'll keep looking at it, Andrew, but right now it's really a growth vertical for the business. Yeah. I would only add to that point, Heath. I really, you know, if you take a look at our track record, right, more than 50 divestitures over the last 20 years, I think you can count on us to be disciplined and essentially follow the processes that we've laid out that says a business has to be strategically important, it has to deliver strong financial returns. You know, we look at that every year across every business, not just the five reportable segments that we have, but across every place where we can make an independent decision around should we be in or out. You can trust that if we decide at any point in time that this business is no longer either strategically important or meets the financial hurdles, we'll do what we've done in the past. We'll pivot, and we'll divest or, you know, we'll make some other kind of plans for that business. You can count on us to continue to do that. Gotcha. Just a follow-up question. You guys did talk about the EV market, but you know, my impression is that EV market has been accelerating faster than most expected. You know, just looking at your projected market growth rate for eMobility, it's 14% CAGR, you know, from 2020 to 2025. Given, you know, everything you said, why is it only 14%? Well, that number in the slide is really a function of the current mix of our business. Just a reminder that you know 25% of our eMobility business is high voltage. The other 75% is low voltage or in the commercial ag space. That 14% is a market calculation based off of our current business. The eMobility business you see, you know, growing from $300 million to $1.2 billion, that's where the outgrowth is coming from. That's north of 30%. Then going from 1.2 to 3.0 as a midpoint for our 2030, all very achievable, and that's gonna be a 300% growth rate. Very quickly here, I would say next year when we start ramping a bunch of the program wins, you know, as I said in the presentation this morning, you know almost 90% of our revenue is already booked for 2025. And so as that starts coming online next year, you're gonna see our market growth, or our growth far exceed the market growth in any event. At this point, to me, it's not about market growth. That's there. It's coming. It's about execution and, you know, picking your spots because there's lots of opportunities flowing right now. If you may just want to take an opportunity to talk about, though, the importance of electrification more broadly, because everybody's focused on eMobility, but, you know, inside of all of these other platforms, whether it's commercial vehicles or construction equipment, you know, aerospace, everything's becoming electrified. Yeah. No, absolutely. I thought Craig did a great job. If you really think about Eaton these days around thinking about these megatrends and electrification, digitization and energy transition, you know, these businesses on the industrial side fit seamlessly into those big megatrends, and they're largely verticals for those trends as we think about growth opportunities. Electrification in particular, it's exciting because, you know, a car, for example, as you saw in one of those slides, connects to the grid. As we think about energy transition, you know, the unique real estate that Eaton has to take from the car and back to the grid and vice versa is exceptional, and it creates competitive advantage in the way that Craig just described. We have a unique value proposition in that regard. You think about electrification of airplanes, you know full propulsion will take decades, but systems are going to get electrified first. We're on testing rigs and platforms for electric actuation of secondary flight controls. We're working on electric hydropower packs. We know how to work with electrical solutions directly as a result of our portfolio and what we offer on the electrical sector side. The key for us is managing our engineering team and talent to transcend the P&Ls, to not think through leadership and technology just through the lens of P&L, but moving power electronics across all of our P&Ls at the same time. Eaton has unique portfolio to execute on that vision. Thanks so much. These look like very extensive answers. Thank you. Mm-hmm. Thank you. Our next question comes from the line of Deane Dray with RBC Capital Markets. Please go ahead. Thank you. Good morning, everyone. Hey, I realize it's not a five-year horizon topic, but it is topical. I was hoping you could comment on Eaton's Russia exposure, any kind of contingency planning going on that you could share. Yeah, appreciate the question, Deane, and can imagine, you know, what's going on today in the Ukraine is on everybody's mind. You know, I'd say that, you know, for Eaton, it's really from a revenue standpoint, you know, it's immaterial. The revenue side of the equation, we don't do a lot of business today in Russia or the Ukraine, so it would really have a de minimis impact on the company. We're obviously looking, you know, closely also at supply chain related issues. From a direct material supplier, we don't once again have any big or meaningful suppliers that we're worried about. We are a little bit worried about, you know, the tier three and tier four suppliers as you go downstream and whether or not any of them would be impacted, whether it's either directly because of the conflict that's going on or because of the sanctions that are being imposed. At this juncture, as near as we can tell, we don't anticipate that that's gonna have any material impact on the company. That's real helpful. As a follow-up for Tom, one of the metrics that did not change was the free cash flow margin opportunity. I know it's gonna be a bigger pie, so there'll be free cash flow growth. What are the goals, especially in the free cash flow conversion, the mid-1990s for an industrial company, you know, is not top tier, but you certainly should have that potential. What is going on to boost the free cash flow conversion? I know there's still restructuring going on as well, and hopefully you've got to, at some point, convert to a pay-as-you-go restructuring. That'd be real helpful. Thanks. Yeah, I appreciate the question, Deane. As you stated in the presentation, over the midterm, we will have our free cash flow margin in the 14% range. The conversion on adjusted earnings You know, we plan to be at least in the mid-1990s. You know, some things we're working on, obviously optimizing working capital. You know, you may have seen in this year, we let our inventory get up to around 15% of sales, doing that to protect our customers as well as to support the ramp up in our revenue growth. Normally, we like that to be in the 12%-13% range, and that number will come down gradually over the next couple of years. That'll be something that'll really allow us to help out. Obviously, we'll always work on our cash conversion cycle, and we think there's opportunity to get better there. We'll take the challenge of the 100% on the free cash flow conversion, but we believe we can easily be solidly in the 90%. Thanks. Hey, Deane, I would only add to Craig's response on the Ukraine situation that he answered it clearly from the Eaton perspective. We do have customers and you've seen some press that may be impacted. It's just way too early to tell. I mean, you know, the titanium production, palladium for catalytic converters, nickel for lithium-ion batteries. It just kind of depends on how long that goes. Some of the Western OEM vehicle companies have stopped doing business with Russia. You've seen some of those announcements too. From an external market perspective, there may be impact. It's just gonna take longer to tell. Appreciate that. Thank you. Yep. Thank you. Our next question comes from the line of Jeff Sprague with Vertical Research. Please go ahead. Thank you. Good morning, everyone. Morning, Jeff. Morning. Hey, morning. Hey, I totally agree these electrification trends are inexorable at this point, very broadly speaking. Do you see any kind of pause in the thought process, particularly as it relates to grid, you know, and especially in the wake of what's happened in the last week that, you know, maybe we're pushing this, you know, too fast, we're leaning off fossil, and we're not quite ready for it. Obviously, the German greens appeared to have a change of heart over the weekend. Just wonder if you could address that, and maybe kind of part and parcel to getting comfortable that we're not ahead of ourself on the grid is really where we're at on storage. Maybe Uday could drill a little bit deeper on the storage side of it to make sure we have the grid stability that we need. Maybe I'll take the first part of that, you know, question, Jeff, and then Uday can pick up the grid piece. You know what? I say my personal point of view, and this is one where obviously there'll probably be lots of points of view, and it's subject to debate, is that I think the horse is out of the gate. I think it's, you know, on the one hand, clearly, you know, what's happening today in the Ukraine is a reminder that, you know, there's a lot of, you know, oil dependencies around the world. I'd say that, you know, there was also a report that came out this week as well on the impact of, you know, climate change and the fact that, you know, the impact and the damage that's been done is probably worse than what we anticipated. I think, you know, climate change, you know, as an existential threat, you know, has been largely accepted by governments, by businesses, by the consumer, as I talked about in my presentation. I think if you look at some of the investments that are currently going on, you take the automotive industry as a great example. I mean, they've already made the pivot, and it's really at this juncture, I don't think there's any going back, given where they put their big investments. You know, certainly, you know, oil and gas will be around for a long time. But if you think about on the increment, on the margin of where all of the investments are going, I mean, it's clearly going into renewables. It's clearly therefore having this downstream impact on what we all have to do as a society to go through this energy transition. You know, I don't think there's any stopping it at this point. You've reached, you know, such velocity today that I don't think there's any turning back. Maybe, Uday, if you want to talk about specifically the grid related question. Yeah. I mean, I think you answered it very, very well. Let me just add to what Craig said, and maybe a little more color is, you know, there's no question that carbon, when you take carbon out of the power sector, it exasperates these market tensions, right? It's been happening for a while. When China eliminated their coal, you have this sort of activist pressure going on with oil and gas companies. You know, I think. Even, you know, we saw that last year with the what happened in Texas and so on. For the foreseeable future, I think we have to recognize that gas is gonna be probably the lesser evil to support the transition to renewables. It's a far better option than oil or coal. And this has to be obviously recognized. You know, nuclear is very expensive. The second part of the policy that needs to continue is a lot more interconnections between the grid to improve the balancing. The third point around flexibility to start looking at, you know, more storage, both behind the meter, in front of the meter. I would say it varies around the world. You know, if you look at China, in the last two years, they've grown their storage 100% each year. I mean, there's significant growth. I think to Craig's point, it's gonna continue. In fact, I'd say when you look at the 75% of all new power additions now are coming from solar and wind. This is a trend that's continuing. I would say that, you know, while it's still, you know, not cost effective or economical. The, you know, governments around the world do need to look more closely at hydrogen for storage purposes. Basically what I would say is we need to continue investing in renewables, flexibility around storage, connectors, and have states start to play a more startup role for hydrogen, just as they did with solar and wind, which is now very economical. I think this trend is sort of irreversible in terms of where we're going. Great. Thanks for that color. I wonder if you could just anyone on the team here give us a little bit more color on Brightlayer in terms of just kinda broader customer adoption, you know, the revenues attached to it, to what extent have new business models developed, any additional color there kind of on a holistic Eaton basis would be of interest. Okay. Thanks for the question. This is Aravind. We look at it from a lens of the customer, though. I mean, we have operations technologies, we have process technologies at customer sites, and we have electrical technologies too. Taking a look at it from the lens of a customer, I mean, there's a lot of electrical data that needs to draw a link to some of these operational processes. Again, from a revenue standpoint, I think we have, like, three business models. We have data as a service, insights as a service, and outcomes as a service. Overlaying all of this is data-oriented services. We had some successes last year, and I'll talk about it from the lens of each business model. From a data as a service or insights as a service, where I think there's subscriptions revenues that will lead to recurring revenues, I think we had some success in data centers, one of the industry segments that we operate in. Locating cybersecurity vulnerabilities, giving visibility into some of the OT devices that's connected to our electrical gear, whether it's UPS systems, meters, trip units, relays, et cetera. So that's tremendous value. That's recurring value to the customer and recurring value to Eaton as well. Second, I think Uday talked about utilities as well in his presentation. I think it's more to do with, we have our operations software called CYME. I think we do modeling of grid assets, whether they're behind the meter assets or grid side assets. Modeling these assets is extremely critical, number one, for capital allocation, understanding what kind of capital investments they'll need to put in for the longer term. We provide these modeling services, grid modeling services longer term for the customer, and that's recurring revenue as well for us. Those are two crisp examples we can give. Our recurring revenue over the last couple of years has increased from 2% to about, like, 5% now. We're about, like, 17%, 17%-18% of recurring revenue with our overall digital revenue. That's a testament of our progress. Let me just maybe add to that a little bit as well, to help as well, add Aravind. When you think about it, you know, when I shared in my presentation sort of for the commercial segment, the increasing sort of addressable market, it was two areas. One was energy transition that has some color behind it, but then it was digital services and solutions. I think the way to think about digital services and solutions is there's two pieces to this. One is sort of energy management, so overall monitoring control of energy in the enterprise. Like, I'm not talking about the building management system or HVAC, but simply the management of energy. You think about Eaton's core competence around electrical power management and monitoring, that's what, where we've been for a while. That kind of part of the market is now moving towards where we are. That gives us a chance to leverage sort of our energy management software that Aravind talked about. We see, you know, good growth in that piece behind that, you know, 21% for that part of the segment. The other piece around leveraging Brightlayer is in predictive maintenance, right? One is energy management, the other is predictive maintenance. As we're monitoring equipment around the world, being able to predict when something is gonna fail using our algorithms and frequency of voltage monitoring. Those are the two areas, I would say, optimization of energy consumption, and the second is around predicting what might fail in advance so we can pinpoint issues and get after them. We're seeing traction in the market because of these competencies. Thanks for the color. Sure. Thank you. Our next question will come from Scott Davis with Melius. Please go ahead. Hi. Good morning, guys. Good morning, Scott. Uday, you talked in your presentation about kind of the content growth and the increasing value in the chain. You know, if we just isolate it down to kinda core electrical, is there a way to think about how that TAM has expanded the last, you know, I don't know, five years, ten years, or how you expect it to expand the next five? Yeah, I think. Maybe I can. It's a good, really good question. Let me try and give you some color behind the expansion of the addressable market and particularly on content. It's very difficult, Scott, to sort of, 'cause it's so nuanced around different applications, different sizes, different content growth based on sort of a whole plethora of mix. But what I would say is more broadly, and I'll give you an example to back this up. If you think about the example that I shared with you around sort of warehousing and what's going on, you have three types of warehouse, for example. You've got the last mile, which is much smaller footprint. You've got the first mile, which is typically getting from the supplier. You've got a consolidation, a middle mile sort of consolidation hub. All three very different scenarios, three very different content. In the first example, the last mile, the content is relatively small on the retrofit. You're talking there around increasing content due to more power distribution. You're adding, say, 300 EV chargers into that. You're talking 10x the original small value. As you move to the larger facilities, it becomes more like 2x. There's a combination of your base businesses in there, the incremental power, and then the recurring revenue that occurs on an ongoing basis. You add all of that up, and you get the sort of numbers that we talked about roughly in the case of commercial buildings of around $10 billion-$15 billion. That's how we see this expansion taking place. In residential, it's very different, right? It's a different set of content requirements, and that's why we say that's gonna go up by 5x. You're adding now charging, storage, software, potential inverters that really drives the content up on the residential side. It's very different by application. Even within sub-segment, it's very different based on the end application. I'd be happy to follow up with you and give you more color on the specifics. Yeah, no, that's. I think, Craig, as you saw on Uday's presentation, as he laid out the assumption for these end markets, you know, these electrical markets, as you well know, have historically been, you know, relatively, you know, GDP-minus growers, to the point where now these markets are gonna clearly grow faster than GDP based upon, you know, these secular growth trends that we talked about. You know, I think 2x what we've seen historically is kind of what's implied in those numbers, and I think that's well supported by the data. Yeah. You know, I know it's not all those apples to apples in your portfolio has changed a bit, Craig, but your gross margin hasn't really gone up much. You've gotten a lot of operating leverage at the operating line, but not necessarily at the gross margin line. You know, Uday, you're talking about increasing value in the chain. When I hear value, it implies higher margin and higher gross margin explicitly. Is that something you guys have modeled or can discuss at least in some way? Yeah. I'm not sure in terms of the value in the chain, if you're referring to the chart that I talked about, was really related to growth and how we're creating value for our customers to help us accelerate growth. I do think, I mean, you know, you can always talk about whether it goes, you know, in gross margins or it's in operating margin. I would say that our track record, Scott, around expanding the margins of the company is something that we've proven that we can do, and we've done it over a very long period of time. If you look at, you know, 20 years ago, we were a 10% company. Now we're north of 20%, you know. As business models change, you have different kinds of businesses, you know, the business models around how much goes into support versus how much goes into manufacturing, we fundamentally have changed the company. If you think about, you know, moving away from some of these highly capital-intensive businesses, like some of what we did in hydraulics, some of what we did in the legacy parts of vehicle, you know, these businesses may have been higher gross margins, but they also had higher costs around them. As you work on kind of this more asset-light business model and, you know, your construction of your P&L looks slightly different. But I'd say today, we don't really worry whether we get it above in gross margin or whether we get it in the way we go to market. You know, the most important thing is that we've expanded our operating margins, and we have a plan to continue to expand them as we move forward. Fair enough. Thank you, Craig, and guys. We appreciate it. Good luck. Thank you. Our next question comes from the line of Julian Mitchell with Barclays. Please go ahead. Hi, good morning, and thanks for fitting me in. I suppose my question was really, you know, one for Heath specifically and then more for Craig as well. But if I start sort of on a more bottom-up, Heath. If I look at the sort of the guidance, you know, margin delta between, say, vehicle and eMobility, what's targeted, you used to have a sort of a 300 basis point gap, and now it's more like sort of 800 basis points, and that's despite Royal Power coming in. So just trying to understand, you know, I suppose on a micro level, you know, what are the assumptions in that base business ex Royal Power and what's happening to margins there? also just as a sort of broader question for you, Heath, but also for Craig, you know, what does that tell us about the profitability implications of some of these secular changes as they play out? You know, if your eMobility margin is gonna be half the level of the vehicle margins, and the world is going towards eMobility simplistically and away from classic vehicle. Yeah. Some good questions there, Julian. I would say, you know, as you see from the numbers, you know, we're getting the profitability up with Royal to sort of the break-even line. We, you know, the last couple of years were in that heavy investment phase and, you know, that showed up in the P&L. Royal certainly incrementally adds to that profit equation. The base business is improving, but we're still in the investment phase. As I said on one of those slides, by 2025, we see us getting into the double-digit territory. By 2030, you know, we've committed to sort of that mid-teens margin, which we think we can absolutely get. Your question on, you know, how do you get there and how do you think about the portfolio, it's gonna be much less capital intensive than our traditional vehicle business, which I think is a great thing. I think we've learned as we've launched this thing, you know, you could argue we are one or two years behind the major launches, but I think we're right on time because the opportunities are flowing. What we see from the market is that we absolutely have the right to compete, win, and profit in areas like power distribution, where we have innovative technology, and we do think that we can hit the kind of margins that we've hit in vehicle. It's just gonna take time. It can take some time to ramp up the volume. You know, from here, I don't see major step up changes and/or step down changes in profitability, but as a percentage of sales, our R&D is certainly gonna drop. We're getting through that heavy investment phase, and now we're gonna start scaling our volume. You wanna add to that, Craig? Yeah. No, but I said, I think some way to think about it, Julian, is I think the two are really incomparable. eMobility is really a growth business. I mean, it's a business today that we're investing heavily in R&D, we're investing heavily in capital, and it will be a growth business for at least 10 years. This trend that we talked about, like this transition to the electrification of vehicles, this is gonna be going on for some time. You're comparing a business, you know, that it's in the mature years of its life cycle versus a business that is really just getting started. I think the way to think about this is that 11%, you know, that he laid out for 2025 is an interim checkpoint. I think, quite frankly, the profitability at 11% will be above what you're gonna see from most of our peers getting to 20%, you know, by the time you hit 2030, getting to 15%, and then we'll go beyond that. We're still investing and will be for the next 10 years, quite heavily in this business as we pursue new technologies and pursue new growth platforms. I think, you know, the impressive part of the company is that despite that, you know, we've committed to continue to expand the margins of overall Eaton. We're absorbing fairly sizable investments in eMobility, which is clearly gonna be a massive growth engine for the company while we're expanding margins overall. Eventually that business, too, will get to the point where it delivers attractive returns. As we've said before, you know, one of the things that's unique about the way we think about the vehicle businesses in general, is that we are in fact very selective around where we play. We set a goal of being $2 billion-$4 billion. We didn't set a goal of being $5 billion-$10 billion. We could have just as easily said, "Why isn't the number $5 billion-$10 billion?" Because we do think that there are gonna be some parts of the eMobility segment where you don't have unique differentiated technology that do become more commoditized, and we won't make great returns. No different than our core vehicle business, you can count on us to be focused, to be targeted, and to participate in those segments and those value chains where we think we can differentiate and therefore make attractive returns. That's helpful. Thank you. Maybe just a very quick follow-up. Is there a way of carving out within eMobility sort of how much is, you know, legacy sort of ICE, if you like, versus pure EV? Then more broadly, I wasn't sure, Craig, if you talked at all about sort of, you know, how the current demand is playing out or if there was any comments at all you'd like to make on sort of Q1 trends broadly. On the carve-out piece, you know, we've kind of described, and it's true this year, that I would say that only 25% or so of our base businesses in what I would call high voltage EV space. The rest is low voltage or in commercial ag, you know, electrification spaces or traditional, you know, and that includes, you know, electrical architectures within traditional ICE engines. The base business has yet to really start growing in the EV space. That's what's coming between now and 2025, for example. That's what gets you to the $1.2, and that's where we're gonna see accelerated growth beyond that. Then as we go, we'll kinda describe our mix change as numbers ramp up. You wanna take a second? Julian, just in terms of, you know, Q1 at this point, you know, we provided guidance for Q1, and there's nothing that we've seen to date that would suggest that those numbers aren't very much consistent with what the guidance that we set. Really nothing new to report there. We're obviously watching very closely what's happening today in the Ukraine. So far, you know, we've not necessarily seen any particular knock-on effect from that, but it's obviously a bit of an unknown. But at this point, you know, nothing to report in terms of a new outlook for Q1. Great. Thank you. Thank you. Our next question comes from the line of John Walsh with Credit Suisse. Please go ahead. Hi. Good afternoon. Good afternoon, John. Maybe just a first question, just confirming, is there any benefit from the $10 billion+ you talked about of deployable capital in the 12%-14% EPS CAGR, or would that be all additional? Yeah, I appreciate that, the question, John. I think the way to think about it is that, you know, that the redeploying of that $10 billion, whether that's in the form of share buyback or whether that's in the form of M&A, is not baked into that number. Clearly, if we have an opportunity to, you know, redeploy that capital in value-creating acquisitions or decide to buy back shares, I mean, that Would certainly help accelerate the EPS growth that we're modeling. Great. Thank you. As a follow-up to, I think it was the answer to Jeff's question, I would just like to get a little bit more specific on what Eaton's aspirations are around energy management in a commercial building. For example, are you a standalone app or platform that would sit adjacent to the BMS or some of the IoT platforms that the HVAC players are talking about? Just kind of wanna understand maybe where Eaton is positioned relative to some of the other stuff we've heard recently from the HVAC names. Thank you. Okay. We got two experts in the room. Arvind, in the valley of the blind. No, look. It's a really good question, actually, jokes aside. It's actually a really good question and something that we've given a deep amount of consideration to. Obviously, it's a space that there are many players in the space that you've alluded to. We think that, you know, we won't be competing. We'll be complementary of where we play with other players, but we just have this unique competency around electrical power management and energy management. I don't know, without our input and play, how that happens as you seek to optimize the energy efficiency in a building. I see it as complementary. We definitely aren't playing in these other areas of HVAC and the building management system. Increasingly, as I said on my presentation, as this becomes much more complex, the role of energy management and our understanding of energy flows, the intelligence behind optimizing energy, when you charge, when you don't charge, which load you turn on, when you don't turn them on, all of that intelligence is built into what we do, and the services that we wrap around that are fairly unique. We see ourselves as complementary. Obviously, this is a space that everyone's kind of moving into. I'm absolutely confident that, you know, based on customer reaction, when we have conversations with customers, increasingly, they're pulling us into these conversations 'cause they know that we understand energy usage in a facility. I don't know whether you add anything, Aravind. I think you covered it really well, Uday. I think our competencies in the power management space, with the electrical care that we have. Using the data. I think there was a question about IoT platforms as well. We can actually feed the electrical data into IoT platforms in a synthesized way. We can also extract data from HVAC players as well and do the aggregation also and give that fidelity of our data through our data science as well. That is our expertise. Yeah. It's a complementary play, as you said. Exactly. We fundamentally believe that's where the value creation will be. Yes, the recurring value. Yep. The insight from the devices, the things that are powering the building, that's where we'll ultimately be able to create value for the customer, more so than having the BMS, which is a way of essentially arraying data and providing visibility into the information. If you subscribe to the point of view that in any application, where is the control point? The control point in the building is for electrical powers at the load center or the panel. That's where we have breakers that monitor, measure, and control energy consumption at any end device. That gives us, I think, a unique footprint in addition to all the services that we wrap around it. Obviously, this is early days. All we can do is base it on what customers are doing in terms of asking us and pulling us in. If I could maybe just add, thanks to my colleagues here, but our very strong leader has encouraged us to eat our own dog food. Many of these ideas are being implemented as we move on our Industry 4.0 journey to improve the footprint commitments I shared in my segment, as well as what Heath, Craig, and Uday shared in their presentations as well. Great. Thank you for taking the questions. Appreciate the details. Thank you. Our next question comes from the line of Christopher Glynn with Oppenheimer. Please go ahead. Yeah, thanks. Good morning, everyone. I had a question for Uday on the commercial buildings piece. You mentioned customers wanna decarbonize. You're seeing more activity at scale. I'm curious, does current backlog embody that material acceleration driven by energy transition investment, or is that really in the inquiries in the front log stage? No, that's a good question. I would say, so in general, you know, as I shared, you know, in the presentation, last year, our energy transition revenue was up very significantly, well ahead of what we expected. Having said that, I would say a significant portion of our pipeline is in the sort of mining phase, right? When you look at the numbers we have right now, in the commercial building, there's probably around a weighted $250 million pipeline of opportunities. Some of these are longer cycle because of the microgrid timing that has to take place. But a large portion of them are certainly in the early stage, or I would say medium stages on the pipeline. Equally, you know, as they come through the pipeline, we are winning, as I shared with you. I'd say that you're gonna start to see this continue to ramp as we saw last year. I think the other piece is that, we're also starting to see a pull-through for our services in ways that we haven't seen before as we wrap it around. I think this is gonna accelerate. I won't give you the unweighted pipeline because that's significantly higher, and there's a lot of noise around that number. But just to get that unweighted pipeline is significantly higher than the $250 million that I talked about. Thanks. Just for a quick follow-up, you mentioned higher conviction on 2022 guidance. I didn't catch if you offered any details on that, but what you're seeing in the past month and a half to, you know, come out here in early March and say your confidence is up in the guidance. I'm sorry, the question was just on 2022 overall? Yeah, I think I missed part of the question. Yeah, correct. Just to clarify the point, I think you mentioned that your confidence in the guidance being, you know, right in your sights is up since you gave the guidance. Once again, there's nothing that we've seen at all in what we've experienced in the first couple months of the year that would do anything to, you know, suggest that we should have different guidance for Q1 or for the full year. Things are panning out largely as we anticipated. Great. Thank you. Thank you. Our next question comes from the line of Brett Linzey with Mizuho Americas. Please go ahead. Hi, good afternoon, and thanks for all the detail. Wanted to come back to the operational excellence cost out opportunities on slide 28, Craig, in your presentation. Was wondering what the cost to achieve those savings are per year, and should we expect Eaton to lay out a formal restructuring savings charges roadmap as you've done in the past, or is this just more of a pay-as-you-go? Yeah, appreciate the question, and I'd say maybe to be brief with the answer, it is largely a play as you go. You know, the big restructuring programs that we've done in the past, and I'd say barring some sort of major dislocation in the economy, we don't anticipate having a need for any large restructuring programs. We're just coming off the tail end of the last one that we, which we announced back in 2020. That's almost behind us now. So much of what we're doing now really is focusing on, quite frankly, growth and how do we, you know, find more people, and how do we put more capacity in place and invest more in R&D. As we look forward, I think it's gonna be much more of a, you know, growth story, driving incremental margins on the growth than it will be a restructuring story. Now, having said that, we did talk about on that chart that, you know, one leg of how we expand margins is obviously how do we, you know, restructure, but so much of it is also around the portfolio and deciding, you know, where do you invest your time, you know, working on the tail of, you know, those products or markets or applications where you don't make great returns today and doubling down on places where you do make great returns. You know, so much of it is gonna be around the way we're leveraging digital across the enterprise to really essentially take out inefficiencies and take out a lot of manual processes in the way we do business today. You know, while those programs, by the way, will generally not require big restructuring, it will require perhaps some investments in some software and some other tools, as we think about how we run the company, but we do not anticipate any very large restructuring programs. Okay, thanks for that. Just a second question on future M&A. You talked about some of the targets within the segments. Could you just speak to the size of the deals that are being considered? And anything you can share in terms of actionability, you know, over the next six to 12 months, or is some of this market volatility injecting some seller caution here near term? Thanks. Yeah. Yeah. It's really nothing that we would be in a position to share. As you know, we typically will announce deals when they're done. From our policy, we don't talk about things until we get them complete. I would say that if you think about, you know, the M&A pipeline, you think about the type of deals that you're likely to see from Eaton, you know, as we go forward, I mean, you can look to what we've done more recently as a good indicator. We'll continue to focus on our electrical business and, you know, as our top priority, our aerospace business and our eMobility businesses in terms of where dollars will likely flow. You can expect that we'll continue to look to make investments in things that play into the secular growth trends that we've spent so much time talking about. You can expect us to continue to make investments in, you know, faster-growing regions in parts of the world, you know, AKA a number of the joint ventures, for example, that Uday did in our electrical business in China. If you wanna know kind of what we're working on and what we're likely to do in the future, if you take a look at essentially what we've done over the last few years, it'll give you a good indication of the types of things that we're working on. Okay, great. Appreciate the detail. Great. Thank you. Thank you. Our final question comes from the line of Cliff Ransom with Ransom Research. Please go ahead. Thank you, folks. Am I on the line? You are. Thank you. I love being last. Thank you. That's terrific. This has to be one of the most comprehensive cultural looks into Eaton that I've seen in my short investment career, and I wanna thank you for a great presentation. When I think about operational excellence and the Eaton Business System and what I call lean thinking, over the last, say, 15 years, it's been something of an on-again, off-again program at Eaton. Can you bring us up to date on kind of the emphasis you wanna put on it? In so doing, can you give us a few 2021 or 2022 examples of things that you've done particularly well, and then maybe talk about something that didn't go as well as you wanted in that arena? I do have one short follow-up. Yeah, no, I think, you know, Cliff, we appreciate maybe your observation that it feels on-again, off-again to you is something that we don't necessarily spend a lot of time talking about in a lot of our public meetings. I'd say that, you know, largely because we feel like that's something that we do well, and I think it shows up in the fact that we continue to get better as an organization, and we continue to expand our margins. We've tried to really emphasize in a lot of these meetings what we're doing to accelerate growth. As I talked about in my presentation, I think the big question around Eaton historically has been, can we consistently grow faster than end market? Can we turn this into a growth company? That's really where we've tried to put a lot of the emphasis on kind of the external messaging around what we're doing inside of the organization. Having said that, Lean and Six Sigma, these tools are very much embedded in Eaton Business System. In fact, sitting in the room with me today, I have a former leader of the business system, Uday Yadav. Yeah. A current leader of the Business System, Harold Jones, sitting in the room, and I can tell you it is as alive and well inside the organization. As I talked about in my presentation, it is the standard processes and tools through which we run the company. It's the way we, number one, set expectations around what we expect every one of our businesses and functions to deliver. It's the way we plan. It's the way we execute. It's the way we do assessments in a consistent way. It's ultimately how we learn and have this virtuous cycle of improvement. That's embedded in continuous improvement in what we're doing in our plants. But I'm not sure. Sure. Harold, if you wanna. Yeah. Let me, Cliff, first of all, good to hear your voice. I could not agree more with Craig. My simple summary would be that continuous improvement, Lean Six Sigma, have never been more vibrant in the company than we've seen these last couple of years. In 2021 alone, we executed, I wanna say well over 2000 projects across the company. These are healthy, solid projects that deliver cost out, improve cycle times, cycle, you know, time to market, cycle within our shops and so forth. Coupled with Industry 4.0, which has really become, I'm not sure if it's the horse or the cart, we're actually driving continuous improvement much more substantially in the way we run the company. Starting with our supply chain and, you know, working with our suppliers, excuse me, coming into our shops, the way we convert up in the front, even with pricing, how we get price in the marketplace and so forth. Cliff, I would say that, you know, continuous improvement has really reawakened in these last five years. We do count on a year-over-year productivity within our shops. The way they get it is through continuous improvement. We're driving within our corporate functions, as we talked about in terms of workforce productivity. We have some pretty sporty targets against that. We're doing all of those things and more. Clearly, this is a non-ending journey. We have much more to do. The business system and CI is alive and well. you know, if you'd like, as we've done in the past with you, we'd be glad to do a show and tell. Based also on quality, I mean, quality is a great indicator. Yeah. Our quality metrics, you know, last year fell all that better, so. Yeah. We've again, to Craig's point, we've been applying continuous improvement to, shall we say, a non-manufacturing other areas. We saw a substantial improvement in quality, which obviously drops to the bottom line. Any improvement in quality is. Yep. No question. Yeah, and so on. Let's hear your follow-up question, Cliff. First of all, I'd love to have a catch-up. Thank you, I appreciate that. I wasn't suggesting you weren't dealing with what I call Lean thinking. I just needed you to talk about it a little bit. Are you using Hoshin Kanri, and are you using it as a measurement system or an assessment system or a planning system? The short answer is all of the above. Okay. We have a substantial set of tools in our ELSS, Eaton Lean Six Sigma toolkit, Red X and so on and so forth. All of those. Our approach, Cliff, is less about the tool and more about problem-solving. Thank you. What is it that we need to improve? How do we go about it? Picking the right tool, the right, you know, organization, teams, and so forth, and we go pretty hard at it. Yeah, we have a pretty substantial toolkit, but the emphasis is on problem-solving to a very clear focus. You know, customer-centric activities, cost out and productivity, functional excellence. That's what we do. Great. Thank you. Let me, Cliff, let me just add to what Hal, Harold just said, just to put it in, you know, your parlance of Hoshin Kanri. The way we have described Hoshin Kanri, the way we deploy it within Eaton is large. We call that EBS PULL, and that's exactly the same concept as Hoshin Kanri or policy deployment that others use in other companies in the way they describe it. We use EBS PULL. It's the same approach. It's a prioritization of key projects at the plant and all the way through the divisions. Then there's an emphasis on resources on that using bowling charts to execute against the metrics and that rigor of follow-up and execution. We actually have that, and it's been in place for a while now. Fabulous. Thank you, sir. Thank you, gentlemen. Any more questions? Hey, hey, good. Hey, thanks, guys. We're reaching the end of the call. As always, Chip and I will be available to do any follow-up calls with you guys. Just have a good day, guys. Thanks. All right. Thank you. Thank you, ladies and gentlemen. That does conclude our conference for today. We thank you for your participation and for using AT&T conferencing service. You may now disconnect.