A warm welcome to everyone here today in this call, and welcome to our Jenoptik Capital Markets Day. My name is Leslie Iltgen, Head of Investor Relations and Corporate Communications at Jenoptik. With us today are our CEO, Dr. Stefan Traeger, our CFO, Hans-Dieter Schumacher, as well as Maria Koller, Ralf Kuschnereit, and Kevin Chevis. Together, they will present our new Agenda 2025, called "MORE VALUE" in Detail, and will also answer questions you may have in our dedicated Q&A sessions. If you have questions, please send them to us via email to Sabine Barnekow from the IR department just shortly before the Q&A session, as she will collect and forward them to the management team. Before we start, we would like to apologize for any inconvenience around us having to switch this meeting from a live event in Hamburg to a digital event only.
As you can imagine, we would have loved to welcome you in person, but in particular, the current travel restrictions due to COVID unfortunately made it impossible. This we regret very much, and we want to thank everyone on this call for your interest in our company, and are excited to see so many joining us digitally today. Also, let me remind you that this call will be recorded. A replay will be available on our investor relations website after this call. Before I hand over, please also pay attention to our usual disclaimer that you will find in the back of our presentation, which is now available for download on our website. We would like to start our event today with a short introductory film, but before we do that, I have great news I would like to share with you.
Jenoptik just successfully closed the acquisition of BG Medical and SwissOptic today. Thus, we reached another important milestone even faster than expected, which is a great success. So good news, good start to our event. With that, I would like to start the film. Enjoy.
Light, the single source of life on our planet. Transforming the microscopic to the multitude, to the miraculous. From the wild to the civilized. Our primitive fears drive us to mobilize human comfort and security. Enlightened by nature, we dream bigger than ourselves to connect people through the power of light. Light creates feats of wonder, inspiring us to feats of imagination. Days of light become nights of light with memories that eternally delight, driving our childlike curiosity to harness powerful technology. The power of a giant idea enlightens another innovation. Our mastery of light sets us on the road that we've only just begun. Light is our origin, our progress, and our future. Light will contribute to the next leap of humanity. We believe in better futures with photonics. The power of light. Jenoptik. More Light.
Dear investors and friends of Jenoptik. My name is Stefan Traeger. I'm the President and CEO of our company. I would also warmly welcome you to this event. As Leslie just explained, we have great news to start it off. We've just closed the acquisition of B G Medical and SwissOptic. So an interesting, and I believe very, very positive news ahead of the event today. Ladies and gentlemen, also from my end, let me apologize for having to switch to an online event on such short notice. Up until very recently, we were looking forward big time to see you all at Hamburg, live actually, and in the flesh. However, you know, when preparing for the capital market days, we thought pandemic was almost over. Yet, COVID yet again proved us somehow wrong. But you know what? It doesn't really matter to us.
We will fight back, and ultimately we will win as a company and as a society. We will not let ourselves be dragged down by this pandemic. Resilience is a quality that is now more than ever an important factor in our everyday lives. The ability to adapt quickly and fast is an ever more important characteristic of a successful company and a successful organization, successful society at the end of the day. Resilience and the ability to adapt quickly are attributes we at Jenoptik have demonstrated again and again in the last 18 months, almost two years since the beginning of the pandemic. Resilience and the ability to adapt will make us even stronger in the years to come. Back in 2017, we embarked on a journey. We wanted to almost reinvent Jenoptik, almost reinvent our company.
We wanted to transform Jenoptik from a fairly diversified industrial conglomerate into a much more focused technology company. Today, we would like to share with you our thoughts, our ideas for the next stage of that journey. If you want the next volume in our strategy book, the next volume will be called "MORE VALUE" . If we can have the first slide, please. Slide number six. Oh, sorry. I'm on the wrong slide. We need to go to slide number five first. Thank you. Let's have a quick look back, a quick look into the rear-view mirrors. When I started at Jenoptik in 2017, I kind of realized that, you know, before we even go into strategies and into financials, we have to address culture. Cultural aspects are very important.
I think Peter Drucker once said, "Culture eats strategy for lunch." Quite frankly, I really believe that's true. If we don't have the right culture in the company, we can have the best strategies on planet Earth, we will not be successful. Therefore, we started to think about who we are, who Jenoptik actually is, and what makes us hopefully very strong. We defined values, corporate values that everybody within the Jenoptik family should embrace. We want to be open for change, open for new ideas. Quite frankly, that's something that helped us big time in the last 18 months. We wanted to address issues proactively. We wanted to go about our challenges and our opportunities. We wanted to proactively manage our portfolio. As we have seen recently, we've been pretty successful in that action.
We wanted to do that in a confident manner, in a way based on the knowledge of our core strengths. We are really, really good when it comes to solving complex photonic optical challenges and transform that into industrialized products. That's when we're really strong. That has been ever since a value of ours. Open, driving, confident, those are all values for the whole corporation. We're on a mission, and we define our mission as aiming to become the leading light, really, in the application of photonics and the emphasis on the word application. We're not reinventing photonics. We're not the first in optics, although I believe that we are one of the first, actually. It's our heritage that dates back way back when Carl Zeiss opened up his little shop here in Jena, Germany.
As I said earlier, we wanna focus on the application of photonics and applying light and using light to do something with, to measure something, to produce something, to influence something, to communicate with the use of light. On that mission, we have a vision. It's our vision to bring brighter futures with the power of light to the world. In other words, we want to use our technological strengths and the power of light to help to make the world a better place. I know that sounds a bit pathetic and empathetic, but I really think that here we actually do believe in sustainability and in sustainable business models. We'll come to that a bit more in the future. Again, culture eats strategy for lunch. That's how we got started on this journey. However, you know, soft factors are important.
They are the foundation for success, but they're almost meaningless without tangible economic progress and financial results. In the last years, we have managed our portfolio actively, actually. Again, we just mentioned the closing of the B G Medical and SwissOptic acquisition. If I now can have page six, please. On page six, we have listed a couple of other events that happened between 2017 and now. We've acquired a number of companies, actually. We've acquired Five Lakes Automation in 2017. We've acquired Prodomax. We've acquired the OTTO Group. We've acquired INTEROB. The recent acquisitions of Trioptics in 2020 and BG Medical and SwissOptic in 2021 have individually been the largest acquisitions of Jenoptik in recent history. We added a lot to the portfolio. We've also taken out stuff of the portfolio. We have done quite a number of divestments, actually.
We've deconsolidated [queue loss] out of our balance sheet and out of our P&L. We have sold our non-optical process metrology business. We've sold our crystal growth business. We have closed factories. We've consolidated our footprint, in particular Berlin. We have consolidated two factories into one. Finally, we managed to find a new partner for VINCORION, our military and defense business. It took a while, but we're glad to be able to report that we could sign a deal to sell VINCORION to a private equity firm just a couple of days ago. We're now an attractive investment also for ESG related investors, which I believe is very, very important. We not only called for translating our portfolio and changing our portfolio, we actually also had very concrete and tangible financial goals. We based everything on the financials of 2016.
When Jenoptik came out of 2016, the group has sold EUR 685 million. With a profitability of EBITDA margin of 14%. We set our goals, financial goals. We wanted to grow this business mid to high single-digit throughout the years. We wanted to expand our EBITDA margin by 200 basis points. As already discussed, transform Jenoptik into a focused technology group. Now, I always said throughout the time, we don't like those guidance that call for sort of above the cycle or below the cycle or through the cycle. We set whatever the cycle is. We stick to our goals. We want to deliver on our promises.
Granted, at that time, nobody has foreseen a global pandemic or an economic crisis that some people call the biggest since World War II. Nevertheless, I think in particular, the way we managed in 2020 and the way we have developed the company, in particular last year, has shown that we can manage with external shocks. We can deal with those shocks. We can come out of crisis stronger than ever. We're now guiding for this year already on sales between EUR 880 million- EUR 900 million and an EBITDA margin of 19%-19.5%. Those of you following us very closely know that there are one-time effects in it. That's something we always communicated. However, even if we strip out those one-time effects, the underlying profitability of our business is way above 16%.
We have delivered on our margin goal, on our financial goals. In order intake, we will be above EUR 1 billion this year already. Financially, we achieved our goals a little bit earlier. We have now also transformed our group into a focused technology group, and I think it's now time, as I said earlier, to talk about the future. A year ahead of time actually. We wanted to have the strategy going until 2022, but we figured that firstly, we've achieved our goals. This is not a bad thing. More importantly, COVID did change the world, and we will see differences. If anything, COVID acted as a catalyst to this digitization of our world, and we will benefit from that as a company. It plays straight into our core strengths.
It plays straight into where we are good, where we are strong. Our strategy for 2025 or Agenda 2025, if you want the next volume in our strategy book, will be called "MORE VALUE". The next few years, we'll focus even more on operational excellence. We'll produce even more innovations in attractive market segments. We believe that we can grow this company until the middle of this decade to about EUR 1.2 billion in sales with an underlying EBITDA margin of around 20%. Let me have the next slide, please. Slide seven. I believe it's always important to know one's strengths and weaknesses before one defines new strategies and embarks on new challenges. We have done that, and we've looked into our own sort of belly, if you want.
We've one more time came to the conclusion that we are at our best when we can solve complex optics and photonics challenges, when we can help our customers to solve their problems that are very complex sometimes, and turn those technological challenges into industrialized products. That's something we're really good at. Essentially, when we can deploy our strengths in engineering. We're not necessarily at our best when it comes to squeezing out the last penny of every product. Now, don't get me wrong, we will continue to work on our cost position. That goes without saying. It's pretty clear. Like every business, we work on our cost position. That's for sure. But we do know where our strengths are, and that is in engineering and not necessarily in generating economies of scale. We do have threats in the marketplace.
That's like every other company does or every other market does. The competitive landscape does intensify. There are all these discussions about decoupling of economies and all those kind of things. There's a consolidation in our industry going on, which by the way, we would like to drive rather than be driven in, if that makes any sense. But we do believe that the opportunities outweigh the threats by miles. It's absolutely clear that there is an increasing importance of photonics in our world. In our daily lives, we see our products more and more and more. We see optics and photonics everywhere. You might not find our products necessarily at the checkout of your local supermarket, for example.
Wherever you go, you see optics and photonics, whether it's with these little devices that we all carry around or by the sheer fact that we do this meeting here online. Without optics and photonics, the digitization of our world wouldn't be possible. As I said earlier, COVID acts as a catalyst to the digitization, therefore, as a catalyst to our marketplaces, to all technologies. The Internet wouldn't be possible without light. Light is used in modern life science and healthcare, in modern ways of producing products and goods in a more sustainable manner, saving our planet as much as we possibly can. In light and optics and photonics, our products and solutions, our technologies are used to enable safer and smarter mobility.
Another term and another topic that we're going to talk about way more over the course of this capital market day. With that in mind, with all our strengths and weaknesses in mind, we looked at our marketplaces. If I can have the next page, please. Page number eight. Today, Jenoptik is acting in lots of different markets. If you count on the left side of the slide, you see that our EUR 800 million-EUR 900 million is actually distributed across seven major markets that we reference. The pie chart on the left side of the slide is our official investor relations representation of markets we serve. We serve a lot of markets. We've asked ourselves, "Can we drive and win?
Not just play, but win in all of these markets at the same time, with the same rigor and consequence that are needed? Or shouldn't we even further focus our activities?" The topic of more focus runs like a red thread throughout our whole More Light themes. The first part of the journey, volume one, was all about more focus on technologies. Let's focus our business on core competencies in optics and photonics. That has been the top topic of, if you want, volume one of our strategic agenda. With volume two, More Value, we're saying, "Let's focus even more." It's not just focus on core technologies, but let's also focus on some core marketplaces. Doesn't necessarily mean that we drop the ball on everything else, but it does mean that we want to be more selective in investing for growth. We want to be more selective.
We'll talk about our future core marketplaces. With the sale of VINCORION, we've essentially left the defense and aviation markets already. A big part of the pie chart on the left-hand side of the chart, essentially gone. Going forward, we aim to focus Jenoptik even more, as I said earlier. Until sort of the middle of the decade, we would like to focus Jenoptik on three core market segments. Again, it doesn't mean that we drop the ball in everything else, but we would like to focus particularly our growth efforts on three core market segments. The first segment is something where we are really, really strong already, semiconductor and electronics. We aspire to bring the next level of digitization by photonics innovation to the world.
We aspire to have about half of the entire company focused on that core market segment in optics and photonics by the middle of the decade. We also want to build out our activities in life science and MedTech. We want to bring optics for companies in life science and MedTech. We aspire to be a leading photonics OEM partner in improving the lives of millions of people around the planet. In this strategic period, we aim to stay an OEM provider. We would like to make that clear right from the get-go. We bring optics and photonics to companies in life science and MedTech. As I said, aspire to be the leading provider of OEM companies improving the lives of millions of people around the planet.
Last but not least, we aspire to become a global full solution provider in the market of smart mobility, something where we already are very strong at. We would like to combine that last aspiration with the aspiration of ramping up recurring revenue in services and sales in smart mobility to about 50%. We aim to have about 50% of all our smart mobility sales and services by the year 2025 in recurring revenue. As you can see, we will strengthen our presence in highly attractive photonic marketplaces, providing optics and photonics to those segments. Segments which are particularly suited, they're core competencies of ours, particularly suited to things we are really strong at. If you can please quickly go to the next page. Thank you very much. I don't wanna read the entire sort of market attractiveness map to you.
It will be made available online. I just would like to point out that we have done an intensive strategic study, market and strategy study together with McKinsey & Company. We looked into lots and lots of different markets and segments in the establishment of our new strategy. Let's go to the next page right away. Keep in mind, we will focus on three core markets: Semiconductor and Electronics, Smart Mobility, and Life Science and MedTech. If you have a look at the right side of that chart, you see that, as I said earlier, we aim to have about half of the business by 2025 in Semiconductor and Electronics. Now, that's a business, that's a market that everybody talks about. It's a market that's fast-growing and highly attractive at the moment.
There is no need to dwell any more on the chip crisis and the fact that the world is hungry for more silicon chips. It offers a lot of attractive opportunities and entrepreneurial chances for us. However, we also know from the past that semiconductor and electronics can be pretty cyclical at times. It is an attractive marketplace, but it can be pretty cyclical. In the spirit of resilience, one of the criterias when selecting core markets had been to balance out the portfolio, to be resilient against external market shocks. In our portfolio, we have already and will continue to focus on, maybe even more focus on, two marketplaces that are highly attractive, that provide sustainable growth, but are less cyclical, actually, almost non-cyclical. That's life science and med tech and smart mobility.
By 2025, we aim to have a balanced portfolio between cyclical and non-cyclical businesses by about 50/50 each, with highly attractive growth opportunities in Semiconductor and Electronics and the Life Science and Med Tech and the Smart Mobility. If you look at that slide, you also see that there is about 75% of the circle colored in blue and about 25% colored in red. That is because we also balance out our business setup. If you think about our footprint in Semiconductor and Electronics, and keep in mind what I just said about our ways to go about opportunities in Life Science and Med Tech, it becomes clear that in those two businesses, you're pretty much a B2B player. We sell to key accounts. We sell to other companies who bring their products and solutions to the end customer.
It's the same business model that we have in those segments. It's a business model that's hardware-dominated. It's not only hardware. We do have services, we do have software in these businesses, but it's hardware-dominated. It's a business model that's characterized by key account distribution channels that enables us to leverage synergies in production across the different product lines. We will keep those two businesses together in one bucket, if you want, in one segment or division, one organizational structure. It's very different in our Smart Mobility business. In the part where we address challenges and opportunities in Smart Mobility. Here, we are really in a B2G business. Very different dynamics, very different way of selling. Sales channels into a governmental account are completely different. It requires different people, different mindset from somebody that sells into, say, a semiconductor customer.
In our smart mobility, we'll also have different ways of addressing products. As I said earlier, it's way more about software, it's way more about services. It's a different business setup, and therefore we keep that in a different operational structure. By 2025, not only are we going to have a balanced portfolio in terms of markets, cyclical and non-cyclical, we also aim to have an even clearer segmentation in our business setup. If I can have the next page, please, real quick. Essentially, what we want to do over the next couple of months and years is to also change our business setup within the Agenda 2025, calling for More Value.
We will carve out the automotive related parts of our Light & Production business and run it as a more standalone business setup under their own brand names. Prodomax and INTEROB are still operating under their own brand. We propose, and we will go ahead with branding our metrology business, which is geared predominantly at the moment towards combustion engines. Although we are working hard on changing that, but at the moment, it's still predominantly geared towards combustion engines. We will give this business its old brand name back, which is called Hommel.
We will carve out INTEROB, Prodomax and Hommel from our current Light & Production division, run it as a standalone business and merge the rest of Light & Production, particularly optical metrology part, and the laser processing parts together with our Light & Optics division into one big focused division that drives Advanced Photonic Solutions for industrial partners or basically key accounts in a business-to-business fashion. Light & Safety will transform into a new division called Smart Mobility Solutions. The role of the standalone businesses, Prodomax, INTEROB, and Hommel, will be essentially to proudly produce the cash that we need to finance the growth in our integrated businesses. Value maximization is going to be the core topic and the theme behind those standalone businesses, Prodomax, INTEROB, and Hommel.
While driving growth and margin expansion will be the theme behind the integrated businesses in the Advanced Photonic Solutions division and in the Smart Mobility Solutions division. I said earlier that Smart Mobility, we aim to have about a third of our business or 25% rather. 25% of our business in that division by 2025. As said, we aim to have a total business size of around EUR 1.2 billion by the middle of the decade. It does mean that in Smart Mobility Solutions will have to grow big time, more than we can by just organic growth. For Smart Mobility Solutions, expect to see a strong focus on M&A plays in the future months and years. In the Advanced Photonic Solutions in our core optics business, we have invested a lot lately.
We have invested into a lot of acquisitions, Trioptics, BG Medical, SwissOptic, to name the most important ones. For the years to come, the role of our photonics solutions, Advanced Photonic Solutions division, will predominantly be to drive organic growth and margin expansion. We believe that we will also see some bolt-on acquisitions for that business, not necessarily large transformatory steps anymore because we've just done two. Essentially, as I said earlier, large confirmatory deals for Smart Mobility Solutions and predominantly organic growth, margin expansion, and bolt-on deals for Advanced Photonic Solutions. The role of Prodomax, INTEROB, and Hommel is going to be to generate the cash that we need to finance the growth in the other divisions. Let's go to page number 12, please. To the next page. Any good strategy is also based on additional non-financial factors. Sometimes they are called soft factors.
I actually don't like that much because it's not a soft thing. It can be a pretty hard thing actually to win the war for talent, for example. It is a financial goal or a financial issue. If you wanna win the war for talents, we need to have the right compensation structures, for example. Later in the presentation, we'll tell you how we are going to hopefully win in this war for talent, what we are going to do in terms of human resources, in terms of our workforce, in terms of becoming or staying a highly attractive employer in our marketplaces. I talked about operational excellence. I said that the focus will be even more on operational excellence, and we will make that even clearer by launching a Jenoptik Business System. Every good business, every good company has a good business system.
Every strategy starts with a great vision and a good aspiration. Every strategy defines the game we're playing and how we win. Also every strategy only becomes successful if we deploy the strategy as a good business system or the right business system. We will explain what we mean by that. We have started to build our own Jenoptik Business System this year, and it really is going to kick off and kick in the years to come. It goes without saying that digitization and innovation is important. It's very, very important for our company. It's very important for our business. We are an innovation-driven businesses and marketplaces. In the later part of the presentation, we show you what we mean by innovation. With the sale of VINCORION, we will increasingly focus on ESG, on making our business more sustainable.
As I said earlier, how we can help to make the world a better place, on brighter futures with the power of light. ESG will be an ever more important factor in our communication and our discussions and in our business overall. With that said, let's now go into some deep dives. The next few minutes, hours, we'll take the time and actually dive a bit deeper in those three market segments. We'll talk about what our plans are and our strategies are for Semicon & Electronics, for Healthcare & Life Sciences, and for Smart Mobility. We kick it off with Semicon & Electronics. I would like to call on stage, although unfortunately it can be only a virtual stage, but I would like to call on stage Ralf Kuschnereit. Ralf is an EVP in our company, and he runs our light and optics business today.
I think it's no surprise when I'm saying that he is going to look after and be responsible for our new division to come, Advanced Photonic Solutions. That said, Ralf, over to you.
Yeah. Thank you, Stefan. Good afternoon. A warm welcome to everybody from my side. I hope the audio is good and everybody can understand me clearly. Let's just go to the next slide. Exactly. For the next few minutes, I would like to give you an update on our view and some of our activities in the semiconductor and electronics market. Also already to the next slide. I wanna do that with starting with the aspiration that we gave us for the semiconductor and electronics market. We aspire to bring the next level of digitization to the people by photonic innovations. What that means is that we'll use our photonic expertise in many ways and in many different applications to enable digitization and the use of digital technologies for many, many people.
We just have here a list of different businesses listed and, like semiconductors, optical test and measurement. On the next slide, I would like to put all these different businesses, applications a little bit into perspective with each other and in order to discuss what are we gonna do with these different applications and businesses. What you see here is actually, I think, what everybody calls a BCG matrix, which is on the x-axis, we see the market share, and on the y-axis, we see the market growth. I would like to start on the left lower corner. This is what typically is called the poor dogs. Here we see the laser machining business and which I would call the classic laser machining business, which is cutting and welding.
As you can see here, and that's of course a reflection of our position there. We estimate the market growth as relatively low, and definitely is our market share relatively low. That is a business where we believe it will be too much of an effort, too much of an investment to come to a better situation. This is a business that we will not pursue much further and will exit over the next period of time. If we move to the right lower corner to the higher market share and relatively moderate market growth, though. That's the quadrant that is typically called the cash cow.
There we have a different area that we call laser material processing. What we mean with that is more specific, more high-end, more niche business that we are providing, for example, for perforation of dashboards. It's there we actually, in that specific niche, we have a very good market share. This is a market that will not grow infinitely. It is a very profitable business for us. That is a business that we will continue, and it will provide cash to fund itself and fund other businesses of ours, but it has a limitation in growth. If we then move up to the star quadrant, upper right corner, where everybody wants to be, we have two businesses there. The one is semiconductor business.
As you already see where we have the dark blue checkbox, I'm gonna talk a little bit more in detail about these businesses. We have the semiconductor business, very nice growth in the recent years, and that's also what we foresee, and a very strong position, and we see a lot of room to grow. That is a strategic business for us, and we will invest and further grow it. Then next to it, optical test and measurement, which we expanded significantly by acquiring the company Trioptics last year, is a very strong pillar with a lot of growth potential and very profitable. That's another star business where we're gonna invest and further grow.
If we move to the upper left corner, which is a very interesting field, the so-called question marks. These are businesses that have a high market growth or going to have high market growth, where we still have low market share, but very often the market is only developing now. I want to start here with free space optical communications. That is something that we have been involved for a while already, for terrestrial applications, but also in space, which is now growing pretty fast. It's a very interesting business. We're already involved in trying to push it over more to the star area over time. Today I want to give a little bit more overview about two very interesting areas, and the one is augmented and virtual reality, where we are expecting a significant change or.
Even further out, quantum technologies and what our position should be there. Well, with that said, I'll jump right into the semiconductor business and give you a little bit more insight about our views and perspective on the next slide. Exactly. So this gives a market overview about the businesses and the applications that are actually driving at the end our business. We kind of gonna peel the onion a little bit until we are at the end optic part of it. So what we see here is the innovation and the market growth in the products that we typically correlate with semiconductors. Smartphones, consumer electronics, personal computing in the top row. Personal computing, as we see, growth rate not so great, but on smartphones and consumer electronics, in the area of 7%.
That is pretty much still interesting because smartphones have always new applications. 5G is coming worldwide. Gaming is a strong driver. So there is interesting and significant growth. If we go to the middle row of the charts, this is the infrastructure. Wireless and wired infrastructure, data centers. These are strong drivers for the consumption of semiconductor chips. Since we're not only using our smartphones, but we are typically using our cloud, these data centers are growing quickly and are using up a lot of chips. If you go to the lower row, which is for me, quite interesting.
We see automotive, industrial electronics sounds a little bit more like a traditional business, but the growth rates are even bigger because there is some catch up to do, and we all know that our cars have more and more chips, and if there are no chips, there's no car to be delivered. Overall, lots of strong markets. In the right lower corner, you see kind of the summary of all of this. We have a 7x growth rate that is predicted for the semiconductor, like the chip market, until 2025 in this chart. That is actually very consistent with what we said a couple of years ago. We were looking at the market, committing to the market to support semiconductors. There might be fluctuations in this market over time. I think we have to expect it.
Most experts say that the fluctuations get much smaller because we have a broader range of customers behind it. One thing is for sure, at least we believe in that there will be an underlying growth, even if there's some fluctuation over many, many years, if not decades. We think that's a strong driving business for our business. Yeah, we go to the next slide to peel the onion a little bit. Here on the left-hand side, you see the dark blue curve. That is in principle, it's a different source, but it's the same curve. It's about semiconductor chip growth, the dark blue curve.
Now if we go to the wafer fab equipment, so the equipment that goes into the factory that produces the chips, that growth rate is even predicted a little higher with 9.6% in this data here. That is interesting, and there's a lot of reasons. First of all, we just talked about the technology. I don't have to repeat that. We're all using more electronics, data transfer, so that drives the industry. Now we also have this geopolitical environment where continents and/or countries want to be more independent and self-sufficient, with some political discussions in between. China wants to be self-sufficient. The U.S. and Europe want to be more self-sufficient and less dependent on other countries.
That drives actually more growth for the factories in the different regions, so that we see this interesting growth even beyond the growth of the end product. And then there is and even another technological reason when we think about the technologies in the fabs where we are supporting with systems and modules. Lithography is one of the important steps in producing a semiconductor chip. The steps that are needed to produce modern semiconductor chips with lithography are getting more and more. These are even sometimes factors in some of the chips. If you need more manufacturing steps with a machine, at the end, you need more machines, and that's driving it in addition.
Overall, we're seeing very healthy underlying trends and a huge demand in that industry, so we will keep driving our part for that. Let's go please into the next page. More specifically, if we look what exactly we are doing, on the top in the pillars, you see where we're producing modules and subsystems for the lithography step. As I just mentioned, we are also doing that for the wafer inspection. Then the right corner, right bar shows display. There's also inspection and lithography steps in display manufacturing. We're active in all these areas. Technologically, we can use synergies between these different markets, and we are providing to the leading manufacturers in all these three areas, our submodules.
These are long partnerships we're having with most of them. A very good relationship, which strengthens our opportunity to win. What is our strategy to grow? Definitely in all areas we're trying to increase our share of wallet because the number of customers is limited, but they are strong and are growing. With more complexity and more innovation in the customer's product, we can provide more innovation on the photonics and optics side to drive their differentiation, and that's the value we want to bring to the table.
Like in most of our businesses, the secret or the strategy to further grow is to be a good partner, which means be close to your customers, innovate internally to provide new ideas for the customers and be strong in technology. I think that fits very well to Jenoptik and has been very successful in the recent years. Go to the next page, please. We just talked about our commitment to this market, and we have been and are still investing into this market because we are convinced that it's very strong, and we want to be ahead and be prepared for the growth of the next couple of years.
We actually invested into E-beam lithography system, which is a very high and very expensive piece of device that gives us differentiation also for the next generations of optics and micro-optic sensors. We are actually doing a huge investment in building a new clean room fab in Dresden, directly in the hotspot of the chip industry, to be prepared for the future growth there. We have a location in Dresden which is performing very well, but for future requirements and future growth, this is a necessary step in size and also in quality, vibration isolated, very clean environment. We're gonna be prepared for the next round in this technology.
Last but not least, also the acquisition of SwissOptic gives us access and more volume with some of the customers because SwissOptic has been active in the semiconductor business before. Next slide. Yeah. In summary, for the semi part here, we are building on being a partner in the whole network of the semi industry. We continue to invest to be a reliable partner and to be innovative for the years to come. Just what the picture shows here and that has been approved by ASML, so we are actually proud. We received a supplier award this year, not long ago, a couple of weeks ago, which we see as a strong signal for our partnership and the long relationship.
Specifically, this has been a sustainability award, which is kind of the theme as you heard earlier from Stefan Traeger. That has to do with our commitment to waste avoid and CO2 footprint, but also hard facts on what the lifetime of our products are and if they can be repaired. Very proud of receiving that award, and we're thankful that we were allowed to show this here. Okay. We'll go to the next slide. Well, that brings us to the second strong pillar that we have in this overall market, semiconductor and electronics, which is optical test and measurement. Ambition here, we aspire to be globally recognized as the leading provider of application-specific optical test and measurement solutions for optics and high-end electronic products. Important part is here probably application specific.
We, as Jenoptik, are typically in specific high-end niches that are, though, big enough that we can create growth. We really focus on these to be successful and have a leading position there. With that, we can go to the next slide. We actually entered this in a major way, or expanded it in a major way with our acquisition of Trioptics in the last year. Trioptics has the gold standard in measuring and testing of optics, specifically for smartphones. That is based on the long experience and participation in the market and huge investments into innovation. They have fantastic products, serial products that are capable of serial production. At the same time, also working with the standard-setting authorities of countries, like in Germany, the PTB, to create standards and gold standards for the industry.
An interesting part we're gonna look at in the next couple of slides too is that, while the smartphone business is still a very interesting business, we see a strong growth in the virtual and augmented reality products. We're gonna be strong and leading in that market too. That's why we're aspiring growth and the margin in that business above the group average. Next slide. Well, this is just a little bit of overview, so what this business actually is about. If you look at the top row, these are the businesses that drive our Jenoptik business at the end. It is the use of smartphones.
Next to it, you see virtual reality, so a complete digital created image that we'll provide it to somebody wearing such a device. The next one is kind of indicating an augmented reality device, so it's a mixture of seeing the real world and superposition of digital data. The car standing for a lot of sensors and cameras that go these days into cars. On the middle row, you see the components that are all required to make these devices work in that way. It's from single lenses, plane optics, lens system cameras, and then also connectors and other mechanical parts that have to be measured to high precision. In the bottom row, you see the portfolio of products that Jenoptik provides. On the left-hand side, a typical Trioptics product.
From the revenue perspective, the biggest part we have now in the interesting markets. Next to it, that would be, without going into details, a product from OTTO Vision. The third in a row would be a product, customized product, from our facilities in the U.S., and then finally, the Opticline. Many different products that have a lot of synergies in technology and are serving all these markets. Next slide. This gives a little bit the total overview of the markets we're serving and the CAGRs. These are our estimates for the growth rates for us. That is interesting because you see here very classical markets like on the right lower corner, mechanical engineering parts, on the left top corner, optics manufacturing.
A business we are in ourselves, which is a quite large business and very, yeah, diverse business. Lithography on the lower corner. There is also very interesting, very fast-growing markets that the optics plays an important role and is differentiating. This is, of course, where we want to put a lot of focus on. Smartphones still an attractive market. Still new innovations coming up. Automotive, more and more interesting. Then at the bottom, AR/VR really expected to come really to market in the next couple of years. Medical technology is a good, let's say, non-cyclical adding addition to it.
I think what this picture shows is that this business of optical test and measurement addresses so many markets in itself already, so that there is a little bit of balancing in the market if some of the other markets here are cyclical. Okay. Next slide, please. This is like a summary a little bit about the strategy we're having, at least for the biggest growth drivers in the industry here. Mobile phones, advanced driver assistance systems, and AR and VR. On the mobile phone side, we are the leading high-quality provider. We, of course, want to not only defend, but also expand that position in that mobile phone segment.
That we will do by continuously working on our relationship with the customers we have today through our key account system that we have. We wanna be innovative, not even more innovative, but be innovative. It has been the business model from the very beginning. Being very close to the new developments of the customers and then being ready to provide the required solution when serial production start. That has been very successful. We continue that model. Also for the new innovations that are coming up. For the automotive industry and even the AR industry, we're using the same strategy.
You can even say, as we saw in the semi business, the model we are driving always is based on a long-term partnership with our customers. Understand the customer needs, being part of the development cycle, and then providing a serial production solution when it's time for that. We definitely have to do more homework on the automotive industry, so to increase our market share there. There is a lot of opportunity coming up. Then the AR/VR, we wanna be really early in the game because that is just developing right now as we speak. We have to be very vigilant and be close with our potential customers to be ready there for serial production. Okay, next slides.
Well, that will kind of transition us to take a little piece out of that because we wanna speak a little bit more about AR/VR. Before I will do that, we have a little video of somebody who is much more famous, but he will probably drive the technology we can provide in a significant way. If somebody could start the video.
Today we're gonna talk about the metaverse. I wanna share what we imagine is possible.
Yo.
The experiences you'll have, the creative economy we'll all build, and the technology that needs to be invented, as well as how we're going to all do this together.
We're here.
The next platform and medium will be even more immersive.
Like a shop.
Some call it school.
Tea talk.
An embodied internet where you're in the experience, not just looking at it. We call this the metaverse. The metaverse. Everything we do online today, connecting socially, entertainment, games, work is gonna be more natural and vivid. Whoa. All right, that's a little too real, let's say. Now this is more my style. We believe the metaverse will be the successor to the mobile internet. You're gonna be able to do almost anything you can imagine. All right, perfect.
Whee, boy.
Oh, hey, Mark.
Hey, what's going on?
Hey.
Hi.
What's up, Mark?
This place is amazing.
The feeling of presence. This is the defining quality of the metaverse. You're going to really feel like you're there with other people. You'll see their facial expressions. You'll see their body language. Maybe figure out if they're actually holding a winning hand. All the subtle ways that we communicate that today's technology can't quite deliver.
I knew you were bluffing.
Avatars will be as common as profile pictures today, but instead of a static image, they're going to be living 3D representations of you. Beyond avatars, there is your home space. Your home is your personal space from which you can teleport to anywhere you want.
Koi fish that fly? That's new.
This is wild.
The metaverse isn't something we're building so much as it's something we're building for.
Across the industry, we need to bring that same imagination and commitment to building for interoperability, openness, safety, and privacy as we do for all the other product aspects of the Metaverse. These have to be fundamental building blocks, just like the other software and experiences that we've been talking about. Our hope, though, is that if we all work at it, then within the next decade, Metaverse will reach 1 billion people, host hundreds of billions dollars of digital commerce, and support jobs for millions of creators and developers. We are fully committed to this. It is the next chapter of our work, and we believe for the internet overall. Beyond the constraints of screens, beyond the limits of distance and physics, beyond any one company, and that will be made by all of us.
I'm just incredibly energized to be on this journey with all of you. That was fun.
Good job, Mark.
Yeah. Thank you very much for the video. Can we go to the next slide then? Well, now that we look at this video, I think this shows how much drive is in that market to make that real. We put our vision out as, you know, Jenoptik aspires to be globally known for enabling consumer acceptance of AR/VR devices by ensuring outstanding quality of optical components. Why is that important? Because there have been a couple of barriers for adoption of that technology that we believe will now be overcome. Companies like Meta or former Facebook will definitely have the power and the energy and the technology to do that. Let's look at the next slide. What we have today, what's happening today is on the left-hand side, you see what we call augmented reality.
You could even use augmented reality with devices we have today, like our smartphones, tablets and so forth. I think Google Maps has the first application like that. We know from recognizing the environment which direction you have to start, digital orientation. This is still looking at it. In the middle, what's called mixed reality is really mixing the real view with digital content. The difference to the left-hand side is you're really getting into the experience, not just looking at it. I think that was very nicely shown in that video. I mean, it's a lot about gaming, but there's a lot of serious applications for that. I mean, imagine we're now having a Teams meeting here or something similar. Many years ago we bought big screens to have teleconferences.
If we could have something like mixed reality, these meetings could work just in a different way, with the experience that we could show you products and other things as if you were in the room. I think there's a huge potential. On the right-hand side, we see virtual reality. That is a lot driven by gaming today, so complete digital environment. But it could also be training, simulation, many ways that can be used. We're already providing products for that on the right-hand side, and I will get in more details. If we talk about test and measurement, we are really in all of these already. Next slide. Why do I believe that this is now ready for prime time?
So there's a business driver. I mean, we just picked, and there's no other correlation, the video from Facebook. I mean, you need to transport your content, and companies like Facebook and others are depending, of course, on the platforms like Apple or Samsung and so forth. There's a strong dependency. If you could have your own device as one of these content providers, you would have just different opportunities. I think this is why there's a lot of pressure to build something like this, and that creates, of course, the competition in the market. From a photonics and optics standpoint, we have been looking at these kind of devices 20 years ago already.
First of all, from a just sheer optics and photonics standpoint, the quality wasn't good enough. If you use one of these devices and it's not perfectly made, you get kind of motion sickness. That's why test and measurement plays a significant role here and of course, the manufacturing of high-end quality, cost-effective optics. Even more, there's a lot of technology necessary. I mean, the hardware is just one part. It is the content that will be provided by these companies, the big social media companies and internet companies we know. There is enough content, but then there's also software and hardware on the device that needs to work perfectly to find orientation in the room and so forth.
The huge step that is necessary, but I think, the benefit that this could bring is so huge that all these investments will be made. If you look at the five bars on the bottom. The right three bars are not for Jenoptik. I mean, this is the content, this is the hardware and electronics part. Other companies will drive and most likely will be driven by the OEMs themselves to... I think like Google would call it the control point. If you go to the left-hand side, the testing, I think is the one where we already have a good foot in the door. There's a lot of opportunity for us to participate in that growth. Then on the component, we'll take a measured approach.
We have contacts and are in business with some companies. We'll have to decide how much we go into mass production. The testing will be something that we really wanna be strong at, and I think we have a good starting point for that. Next slide. Here you see a little bit what's expected in the market. On the left-hand side, the virtual reality, so the completely closed head-mounted devices, a little stronger right in 2020. A good growth of 16% CAGR with huge error bars, of course, these estimates. On the right-hand side, a smaller market today, but huge growth expected for augmented reality devices because that will be more for everybody, like a smartphone.
Therefore a huge growth. That all has to be managed, all has to be manufactured. We see it has to be manufactured with super high quality because it's near to the eye, and we see again a strong position for us with our knowledge in optical test and measurements to support and enable this market. Okay, next slide. Now one more thing in semi and electronics market, which is quantum technologies. This is something that will take a couple more years until this becomes a real business for us. I think it's really time to get even more engaged into it because it will be interesting and very interesting in the future. We have to be involved as a photonics company.
Our mission is we're inspired to be the photonics partner of choice in industrialization of selected quantum technology solutions. Here you see the main theme. We again want to be a partner to some of the OEMs with our photonics expertise to support that next step in computing. Next slide, please. What you see here is though, there's actually three areas: quantum computing, quantum communication, and quantum sensing. Let me try to do a two-minute introduction into quantum computing. What are we talking about? Because I wanna explain why we're doing this and what we can expect. I mean, today, every computer or classical computer we're sitting in front of today is built out of bits, right? There's, as you probably know, ones and zero state and one bit, so it can be one or zero.
There's logic gates that combines ones and zeros, and then the computer, if you do this in a smart way, can calculate something and the rest comes from it. Everything we're seeing today, Teams meeting is built on bits at the end. That's a computer. In the computer, it's an electronic device. It's a transistor giving that, creating that bit. While a quantum computer has quantum bits, so-called qubits. The difference is the qubit can be one or zero, like the regular bit, but it can also be both at the same time. What you call in quantum mechanics, the superposition of both states.
I don't wanna get too much into it or make it really complicated, but if you combine these quantum bits who can be in both states at the same time, you can imagine that without understanding any detail, it's like because it can do both at the same time, it can kind of parallel compute. If you put a couple of these quantum bits together, the power it gets to calculate things is so enormous that it can outperform any of the classic computers easily. Well, it's not replacing. Everybody who's in quantum computing says it's not replacing regular computers, so there's no worry on that one.
It will be so powerful that it can solve some basic problems, and these are typically problems of nature, like chemical bonds, biological systems, could help in medicine or even traffic or climate change, which are really hard to simulate. That's where this can go. What can a company like Jenoptik do in that area? The point is a quantum bit is a physical system. It can be an ion in a trap, an atom in a trap, or it could be a photon that can have these states. These photons and these quantum systems have to be created, they have to be manipulated, sorry. You have to read them out, you have to change them. Photonics and light is a very likely technology that will be used.
There's also magnetic fields that can do that, but it's very likely to do that. Honestly, nobody really knows what exactly will be used. It is, I think, such a great innovation that it is necessary for a photonic company like Jenoptik to be involved from the get-go. Here you see some numbers. They have huge error bars, quantum computing. Quantum communication is something similar. It uses a different quantum quality, entanglement, so you could transmit data quickly or encrypt it much safer and then quantum sensing similar. We're not even talking about revenue outlook for Jenoptik, but it's like the flight to the moon. You need to be involved to be in the business at the end, and you might also have other technologies that can be derived from it. Next slide. We're already doing that.
Again, our role would be we will provide optics technologies, optical systems, lasers, other sources, whatever is required to partners. We're actually doing this already. We are working with an innovator for trapped ion computers. We're already providing optics there. We believe that while we are having these discussions with these customers, we will learn where the trend goes. We will have to adopt and can adopt, develop new technologies and then be in the business once this will become a serial productive business. We can combine this technology part with our connections to the other businesses like in biophotonics, like in data, like in data communications. These companies are thinking about all these technologies, and we can absorb all this information and processes to provide new solutions. Next slide.
Well, in summary on quantum computing, it's in principle our business model to have this long-term relationship with our customers that we definitely call partners in both ways. We are used to having long-term partnerships and co-developing solutions with our customers, and then switching over to a reliable partner in shipping serial products. That's again like we do in semiconductor, like we do it for optical test and measurement. We wanna create this for quantum technologies in the long run. Okay. Thank you. I'm gonna switch to the next slide. Thank you. Quick summary here. We have an existing business within the area of quantum computing. Through our contacts with huge customers in optics on optical data communication photonics, we're having discussions and entering discussions in quantum computing.
We're expecting or hoping to get into more discussions in quantum sensing through our connections in the biophotonics. Okay. Thank you. Next slide, please. Well, last but not least, I have another two slides on life science and med t ech. We're leaving semiconductor and electronics you see we're approaching the new area. As we have today, our ambition is we aspire to be the leading photonic OEM partner, helping to improve the lives of millions of people around the world. Again, the same model. We are supporting many of our customers with photonic solutions like read heads for gene sequencing, lasers for medical applications and so forth, always shipping to the OEM that provides the medical product at the end. Next slide, please.
I'm really happy that we could announce the closing today. I don't have to repeat that has been said before. The acquisition of Berliner Glas and SwissOptic really gave us new opportunities in that field. We accelerated growth, we made a significant step in the size of the business. We can use our global footprint and combine it with the capabilities of SwissOptic and Berliner Glas, and we are broadening our competencies in technology and again, our access to different markets worldwide. Next slide. You can see, and I'm kind of taking the semiconductor part here with me. The acquisition is such a fantastic strategic fit in my opinion because it really covers both segments where we are active in and adds to it to create synergies.
Let's start with the medical technology that we just talked about. We are adding access to the dental and robotic surgery business where we haven't been very strong yet through the Berliner Glas Medical, and these are relationships to the leading companies in that field, so very, very exciting, and also with that adding new technologies. Through SwissOptic, we're actually having good synergies because we're addressing similar markets like ophthalmology. There we can help us out with customer access and technologies in both ways. Overall increasing the medical business for Jenoptik as we see on the next page. Before I do go there, on the silicon business, it is the same.
We're actually adding to our revenue with some of our critical customers, so we're becoming more significant through an acquisition, increasing our share of wallet, and can strengthen our strategic partnership with these customers. Now we go on to discuss the next and the last slide. This is what we're thinking about for the Life Sciences and MedTech business in numbers. We're expecting to close in 2021 with a revenue of about EUR 180 million in that business. Then we're adding the Berliner Glas business and SwissOptic business to it. It's a significant step, gets us far beyond EUR 100 million.
If you look, we're talking about Agenda 2025, the organic growth of the business we already had and then the business that organic growth of the business Berliner Glas and SwissOptic will bring us, and we jointly can create. We're expecting to be at around EUR 170 million-EUR 200 million in 2025 as an estimate from organic growth. That's the bottom-up planning. If we compare it to the target we set ourselves for that business, we have a gap of EUR 100+ million, where we will look now in the next couple of years, how we can close this inorganically with strategic and bolt-on acquisitions to strengthen our position in that market. With that, I would like to close that part of the presentation.
Ralf, thank you. Thank you very much, Ralf. Very interesting. I think that's very cool technology. You know, we talk about semiconductor, we talk about artificial, we talk about virtual realities, mixed realities. We even talk about the quantum world. We know that with quantum, we're not gonna make huge revenues in the next few years, but I'm strongly convinced that as a photonics company, as an optics company, we can look ahead. At some point, there will be an inflection point, even for the quantum technology. That's a given to be. Whether it's next year, probably not. In 2025, maybe. In years after that, definitely. There's a lot of money going into that field at the moment. Very exciting.
I'm pretty sure not just for us geeks and physicists here, but I think also for investors, actually a very interesting field. I think virtual reality, augmented reality, mixed reality is much closer to the inflection point. We are approaching the inflection point when it comes to that new technology, not just driven by Meta, but other companies as well. Again, thanks, Ralf. A very interesting discussion. Very interesting presentation, I believe. I also think it's interesting and important to see how we develop in life science and MedTech. Let's be clear. With the acquisition of BG Medical, we already have almost doubled our footprint in life science and MedTech. There is a strategic promise that we made all the time. It's a very important field for us, gives sustainable growth, sustainable margin expansion.
Now, with all of that, let's switch gears a bit. Let's now come to another part of the market we're addressing. Let's now come to Smart Mobility Solutions. Solutions that we drive, again, to make the world a better place. Every person that's dying on the road is a person too many. Every death toll that we can reduce is a good thing. It makes the world better. Brighter futures with the power of light is our envision, is our vision, and is what we build here. In particular, in the field of Smart Mobility Solutions, we can combine that with recurring revenues, with more stable income flows, with non-cyclicality. Kevin Chevis is going to present that part to us. Kevin actually came to Jenoptik with an acquisition himself. In a way, Kevin got acquired by Jenoptik.
Of course, not Kevin himself, but his business, the business that he was running for a number of years. Kevin came to Jenoptik as an acquisition that the company did some years back in the U.K. Kevin is now an EVP of Jenoptik, of the group, and is running today our life science, sorry, our LNS business, our traffic solutions business, our Light & Safety business, and is going to merge that and be heading the new Smart Mobility Solutions division. Kevin, with that said, over to you.
Okay, thank you very much, Stefan. Could I have the next slide, please? I hope everybody can hear me and see me well. I'm actually in the U.K. currently. I'm very, very pleased to be able to present to you our strategy over the coming years for Smart Mobility Solutions. Can I have the next slide, please? It's important that we set out what it is we're trying to achieve. Our aspiration, as it says here on this slide, is to become a global full solution provider in smart mobility. Equipping and servicing critical infrastructure, an innovative portfolio, while earning at least 50% recurring revenue. There's some important points in that statement.
Clearly, we are targeted to grow, and we're gonna use the coming months and years to achieve that in quite a substantial way. We're also making a clear statement that we want to be providing more services. More services equals more recurring revenue and more stability for the group as a whole. Can I have the next slide, please? Before I get into too much detail, probably useful to go over what segments of smart mobility do we currently operate in, and to understand those markets and solutions and drivers in a more detailed way. All of the markets we operate in have photonics at the heart of their solution. We design, manufacture, install, and support high technology, high specification photonics devices at the roadside.
What increasingly we're doing is we are leveraging the data and the information that those devices capture and create and add functionality to that, and leverage that to provide services and solutions that our markets require. The segments we currently operate in include traffic law enforcement, road user charging, and civil security. Let me just take you through some of the drivers for those markets. All those markets grow and are expected to grow over the coming years. When you consider traffic law enforcement, which is very much about speeding, red light enforcement, incorrect turns, all those sorts of functionalities. Are you wearing a seatbelt? Do you have a helmet on if you're riding a motorbike? All of those are driven by some quite interesting facts.
It's estimated that approximately 1.4 million people die each year through some form of traffic accident. That actually means every 24 seconds, approximately, somebody dies. Up to 50 million people a year are injured or seriously injured as a result. Those are quite horrifying numbers, but they remain key factors to why this market will grow and continue to grow. Those numbers tell us that a road traffic accident is the eighth leading cause of death on the planet, which is quite astonishing. If you look at younger age groups, 5- 29, that is the leading cause of death. Now, interesting, while there are many human factors as to why road safety needs to be improved, there is a financial aspect to it.
It's estimated that in the U.S., the economic and societal impact through road traffic accidents is in the range of approximately $870 billion per annum, which is a huge number. You can see that governments, policy makers, road designers, and so on are very focused at trying to improve road safety, and will continue to do that. What's more interesting is that 90% of those deaths occur in low-middle income countries. I expect some of you will be familiar with the political initiatives called Vision Zero and others that are sponsored by different governments around the world. This is an initiative which aims to reduce deaths on the road to zero. Possibly something which is impossible, but nevertheless, as an aspiration, it's what politicians and policy makers are seeking to achieve, going forward.
With that in mind, organizations such as the United Nations, the EU, and so on, have a real focus on some of these low middle income countries. There are now additional funding, additional projects, additional initiatives which are aimed at reducing deaths and injuries on the roads in these new countries. The market drivers for traffic law enforcement are very strong and undeniable. When we talk about road user charging, most people when they first think about that, consider road user charging to be tolling, paying to use the road. Well, it's true, that is an important part of road user charging. Increasingly, organizations, governments, and countries around the world want to improve their road infrastructure, but don't have the capital funding to achieve that.
More and more services are provided and more and more toll roads are being introduced to actually fund those road improvements. Again, with the cost of COVID over the last years, and that still continues now, we see more requirements going forward to pay for the use of a road. Also in that road usage charging marketplace, the two other important factors which are highly political at this time. First is emissions control and the need for a road organization, a local authority or government to reduce the emissions in a given area. That's particularly popular at this time with COP 25, all those sorts of initiatives. We see growth in these areas. Clean air zones, how do you enforce those? You need photonics technology to do that. Another part is congestion management.
Increasingly, we see more vehicles, more congestion in city centers and other places. We see more growth and more opportunity in the management and enforcement of that. Paying to go into a city center for as in order to deter people to do that and therefore reduce congestion. In civil security, again, a technology, a market space which uses technology, photonics technology, combined with an intelligence database to prevent crime, to help prevent terrorism. Importantly, our systems are increasingly used to locate abducted children, missing people, all those types of things. They have a real value in making our society safer as we go forward. All of those involve the use of photonics.
All of them look at vehicles, their movements, what they're doing, where they're going, how they're doing it, classify them, and have an output of some form or another. That's the commonality between the markets within which we operate. In general terms, we design this technology, we install it, and we support it. In some cases, we run some services around that in certain locations around the world. Could I have the next slide? Stefan mentioned earlier, our target to grow our business to represent 25% of the group revenues by 2025. This is an ambitious target. But we do have a plan to support that. You can see from this chart that we are able to achieve organic growth throughout this period.
It is absolutely clear, and it's absolutely an important part of our work and focus right now, is to make acquisitions to achieve that goal of EUR 300 million of revenue, approximately in 2025. The way we're going to do that is to focus on three key things. I mean, firstly, we need to continue our progress with new technology, whether that's in the high-end marketplace of developed countries or in emerging countries where the specifications are somewhat less. Secondly, as we see, an opportunity to provide more services, if we provide more services, we will have a bigger part of the value chain, and we'll have a bigger share of the wallet for the solutions that we provide. Thirdly, acquisitions. Acquisitions will be focused in three key areas.
One would be entering new markets where we currently don't operate. Secondly, would be acquiring technology or service provisions which enable us to expand our value chain, or thirdly, to broaden our technology portfolio and bring more technology to the market quicker than we can develop ourselves. Next slide, please. This slide shows clearly our current focus. But what is our growth lever? Well, we see in a number of countries the opportunity to deliver the entire value chain of our services. For example, in traffic law enforcement, where we currently deliver a solution, we install it, and we support it. That's only part of the process. Following the generation of an incident, a ticket, a penalty notice, whatever it happens to be, that then has to be validated and checked.
It then has to be issued to the member of the public, and then there needs to be a process within which to collect the fines and deliver the cash to our clients. We see a number of opportunities in different countries and different regions to expand that process. By doing that, we will move ourselves up the value chain by one level. Now, we're not expecting to do that in every country, 'cause in some countries we work very well with existing partners, and we don't see that changing. There are some opportunities in Europe, in North America and various other places where we can build out our value chain, increase the value and deliver higher growth for the organization. Next slide, please.
One of the things that we do and in differentiating ourselves from our competition is that we have focused quite heavily in the last 18 months, two years, on not just leveraging photonics expertise, but also our artificial intelligence expertise that we've developed over this time. We've had some really fantastic breakthroughs. It's quite interesting. Some things that we felt two years ago were not possible are now possible. We're driving our competitive edge by pushing this capability. I put some examples here just to illustrate the types of things that we were able to do. In artificial intelligence, when you want to read a number plate or locate a number plate, you need an awful lot of images and data to do that to a high level.
One thing we've done over the last year is we're now able to create our own synthetic data to do that training and that work. The two key things that that does for us, firstly, it means we can go to any country in the world, and within a matter of days or weeks, we can have plate reading technology to a high level available for that marketplace. That's crucially important if we're going to be going to some of the lower middle-income countries where there is going to be more opportunity going forward. Secondly, with that expertise, we have a number of cases now where we're able to read number plates to 100% accuracy, and that years ago was felt completely impossible. That's quite an exciting development.
We're also using video analytics to do high accuracy speed measurement within video, and that's in a regulated marketplace that's used for secondary verification of speed. In emerging markets, we can use that as the primary speed measurement. That means we can use a new platform, a lower cost platform, and do all the measurements within video to a high accuracy level. That will open up new markets for us, particularly in these lower middle-income countries. Finally, something we've been very successful with is reading number plates in very difficult lighting conditions. Building on patents that we already own, we're now able to read plates which are not easy to see, and when it's dark, they're almost impossible to see.
Using the combination of these technologies, we can now do that. It's interesting that in one recent trial, we achieved a performance of approaching 100%, which some years ago was felt completely impossible. I'm really excited about those developments. Next slide, please. Now, as we approach the advent of connected autonomous vehicles, many people ask me the question, "Well, does that not mean when we all have an autonomous vehicle, there's no need for speed enforcement or red light enforcement and the like?" I think it's that question is the wrong question to ask because you have to look at the marketplace and see, well, when and how is connected autonomous vehicles gonna arrive here? The truth is, no one really knows the answer.
There are many studies, many analyses that have been conducted by the likes of McKinsey and so on, who predict that the number of fully autonomous vehicles that would be for sale in 2040 could range between 10% and 90%. What does that tell you? That tells you nobody really knows. The second point that's important to note here is that during this period, there will be a mixture of non-autonomous, semi-autonomous and autonomous vehicles driving on our streets. If you take the 2040 example where it may be 20%, 30%, 40% of vehicles sold are fully autonomous, we have many years where we still need to enforce the law on the roads and maintain safety.
A combination of vehicles will create new challenges for us and new dangers on the road. What is clear to me is that some aspects of autonomous vehicles may come quickly. We may well see logistic vehicles acting in an autonomous way, and we may well see transportation in inner cities acting in an autonomous way. They have to work with other vehicles on the road, and they will also need infrastructure to support them in driving around safely because they cannot see everything. They cannot see around the corner. We are actively working on a strategy where with a number of research organizations in various countries to influence and understand and start developments on what our role in that new world will be. That's quite an exciting proposition.
We've already done some development, and we've already made some. We're about to start a trial project where we will be working with an organization to assist in the driving of a vehicle in a city center where they cannot see around corners and various things like that. We see a lot of opportunity for that going forward. Providing not just traffic law enforcement for the future, but also the ability to look at a street scene, look at the vehicles, look at the pedestrians, look at bicycles, look at motorbikes, sense what they're doing, predict what they might do, and then communicate with infrastructure and with vehicles will help us provide a safe landscape for the future. Next slide, please.
Just looking at it geographically as we go forward, now we plan to further develop our position in North America, and this very much is by building out our value chain. We are already one of the biggest suppliers of speed technology in North America. We do have modern technology available, and we plan to build out our proposition to move up the value chain. That means our contract values will increase. The same thing is true in Europe. There are in a number of emerging markets, and in Eastern Europe particularly, there are significant opportunities for us to get involved in the running of the services and thereby grow. Next slide, please. What does that all mean for us from a financial perspective?
Well, we're already a strong company, and we already have something in the region of 44% of recurring revenues. That has helped us be stable during this global pandemic, where it was difficult to get to client sites or difficult to purchase components. That means we're a very stable business in that perspective. On the basis we organically grow and on the basis we make the acquisitions that we plan, by 2025, we should see recurring revenues on an annual basis of 50%. Of course, the more you have of those recurring revenues, the higher the level can be. By 2030, it's quite feasible to see recurring revenues of around 60%.
The important thing about providing services rather than simply providing technology to others is that this company, Jenoptik, does have the financial strength to do that. There's always some financial investment to install equipment in the early days, and then you get your recurring revenues as we go through year by year, between three, five, seven, and in some cases, 10 years. Slide, please. Just to sum that all up, and I'm conscious of time, we've got four key actions to achieve this growth. Organically, we're gonna build out our value chain and provide the services I talked about earlier, especially in North America.
We're gonna continue to update our product portfolio and platform, and we'll have two product sets, one for sophisticated, high specification markets and a new product set which we'll launch next year for emerging markets, which have a different price point. We'll also seek to acquire organizations which have either technology, market access, or will help us widen our value chain exposure. That's pretty much what I was going to say today. Thank you very much. I'll pass you back to Stefan.
Thank you, Kevin. Thanks for that, inspiring presentation. I said every death on the road is a death to many. We have the technology, we have the means to help our governments, our communities, to make our public places, our roads safer. I think that's a very important goal and very important ambition, very important vision. It actually translates into even better economics for the company and even higher returns for shareholders. How about that? Combining a good vision with financial success. I think that's exactly what we want to do. We will now take a break and enable questions. Now that probably, from a technology perspective, is the most challenging part of today. Since we cannot be together in one room, we have to find a way to address questions, answer questions that you may have.
Given the fact that we had to switch to this online event really in a matter of literally hours, actually, we thought it's best if you send questions to the address that you can see on the bottom of the slide right now. Thank you for the slide. Sabine Barnekow @ jenoptik.com. If you can please send your questions to that email address, we're going to collect them and try to answer as much as we possibly can. We're also going to have a Q&A session later in the day at the end of the event. If you have any questions that, you know, pop up later, no worries. We can address them at a later point in time.
Of course, our investor relations team and all of us will be available for questions and one-on-ones or things like that throughout the next couple of weeks and months. But I'm looking towards the engine room here. We don't have any further questions at this moment, apparently. If you have any questions, please do send them via email to Sabine Barnekow@ jenoptik.com. If there aren't any at this point in time, which again, doesn't seem to be the case. Okay. No questions at this point in time. That's fine. Why don't we do the following? We take an hour break. I know that's a long time. On the other hand, we thought, hey, to sit in front of a computer screen the whole day is something that we all.
On the one hand, get used to, on the other hand, I don't know, probably never get used to. Apparently, there is a question now. Okay. Let's see what the question is. We have one question by now.
Yes, we do have some questions. First questions are coming from Florian Pfeilschifter from Stifel. First question: Looking at your 2022 midterm guidance and your overachievement here, how much more headroom potential is in your Agenda 2025?
That's a very interesting question. Let's just answer it from a qualitative point of view. In our current guidance for this year, there is quite a number of one-time effects. Nevertheless, I think what you're referring to is the fact that the underlying EBITDA, even if you strip out all the one-timers, is still above what we've promised to the capital markets for actually 2022. Yeah, we are a bit ahead of time here, which is a great thing, I guess. Now, how much potential there is for overachievement in 2025 from today we see in 2024. Of course, the current situation, the pandemic that we're in, nobody really knows how the next quarters and months are going to pan out.
I guess it's best if I say what I did say in the end of 2017 and 2018. At the time, I did say, "Look, we all don't like these guidances that talk about the cycle, above the cycle, below the cycle, through the cycle, whatever the cycle is. We wanna be at EUR 1.2 billion, around EUR 1.2 billion, in sales in 2025, and we wanna convert 20% of that to operating profit in terms of EBITDA." Now, please do keep in mind that we talk about potential acquisitions, but we also talk about potential divestments. I mean, VINCORION alone takes out a substantial chunk of sales from our current top line. Yes, it should actually also improve the fleet average of the group in terms of margins.
If you take it all together, I think we have an ambitious yet achievable target, and that's how we went about the first chapter of our strategic journey here. We always said we wanna be ambitious, yet also achieve what we promise. I'm not going to sort of qualify and put any more qualifier on our midterm guidance. We believe it's ambitious, given that we also talk about a lot of potential divestments, some acquisitions. It's ambitious, yet achievable on the top line, and it's ambitious, yet achievable on the margin quality. Let's also add to that, not every acquisition might be lifting up margins right from the get-go. We also need to achieve synergies, and those things. Again, is there room for more? There's always room for more.
Are we going to fight for more? Yes, of course, we're going to fight for more. Are we going to achieve more? Maybe. What we promise is around EUR 1.2 billion in sales and about 20% of that to the operating profit in terms of EBITDA by the middle of the decade. I hope that answers the question.
There is another question coming from Florian Pfeilschifter. If you focus on three core markets, wouldn't this call for a divestment of Light & Production, respectively, Automotive business eventually?
Well, as I said in the beginning of the talk, we are going to carve out certain parts of our current Light & Production business. We will run those businesses even more independently. We will run, in particular, Prodomax, INTEROB, and Hommel as independent brands. Prodomax and INTEROB are still running as independent brands anyways. Hommel , which is our former non-optical metrology business, has been rebranded into Jenoptik, really just what? five, six years back. six years maybe. The products of Hommel are still known in the marketplace under the name of Hommel. So we'll rebrand those businesses and give them their own brand and operate it under their own brand if you want. We will operate them in a more standalone fashion.
As I pointed out at the beginning of the talk, their purpose in life or their role in the group is going to be to produce the cash we need to invest into growth and margin expansion at our more integrated businesses. That's their purpose, and they might do that for years and years in a row. Maybe if somebody does want to offer us lots of years in a row in cash, well, then we have to talk. That's something we have to do anyways as a portfolio company. We would then, of course, sit down and talk. We're not here to communicate the plan to sell these businesses. They're good businesses. They're successful businesses. Some of them have even greater than fleet average profitabilities.
For now, we will run them in a more separate, more standalone fashion, and their role and their purpose within the portfolio of the group is to generate cash that we need to finance the growth of the other businesses. I think that's. I hope that answers the question at least qualitatively.
We have some more questions coming from Malte Schaumann. What is the first one? The first two are referring to semicon and electronics. What's the potential revenue contribution of the potentially high-growth markets, quantum computing, AR/VR, free space optical communications by 2025? And what is the potential in the longer-term perspective, for instance, at the end of the decade? And the second one, Trioptics. What's the revenue contribution from ADAS, automotive, and AR/VR today, and which sales levels should these markets contribute by 2025?
Okay, let me try to address that in terms of revenue contribution of the modern technologies. The question mark, I think, is how Ralf called it in his slide, although we have no question whatsoever that these are very important technologies. Just the question, you know, I guess the question is how we can grow it even faster. Now to the potential revenue contribution of those technologies, I think it really does vary. I mean, in terms of free space optical communication, that's something where we are active already. We do get revenue from that today. It's not huge, but we do get revenue from that today.
We do expect that in particular the free space optical communication on satellites is something that might take off in the next year, maybe two, three years or thereabout, certainly within the strategic period until the middle of the decade. I think no, I'm actually pretty certain. The same is true for mixed reality, AR, VR. Here as well, we are in the business already. We do have machines that help clients to build those devices. If the inflection point is next year or the year after, I don't think none of us can really tell. I don't know.
I think the sheer fact that a company like Meta, the beautiful Xena video or all the other big tech players out of the valley are heavily investing into that is a testimony for at least the volume and the oomph behind that. Ralf pointed out it's about being on the platform, but I think it's also about the availability of content. That will be made available by those companies. I think within the strategic period until 2025, we will see. Well, I'm pretty sure we will see. I'm actually fairly certain that we will see revenue contribution of that part. We also will see some revenue contribution of the quantum technology. This, though, I think is further out.
I don't think that quantum technology plays a major economic role or financial role for Jenoptik in the next two or three years. Nevertheless, we thought it's very important to show to you, to our investors and to everybody that's close to our company that we have technology even beyond what many people are talking about today. We just wanted to give you a glimpse of what we also work on, even if it's not necessarily going to be a major sales contributor in the next three years or so. Will quantum technology play a major role in the second half of the decade? I'm pretty sure. Just simply because of physics, the law of physics, it's got to. It's going to.
You will understand that I can't give you sort of tangible numbers in terms of how many euros per annum or anything like that, but I hope it at least quantifies the answer. The second part of the question had to do with Trioptics and the composition of Trioptics sales today. We're not disclosing that. We have some certain confidentiality agreements also with customers. Let me just say that Trioptics is strong in classical optical testing. Quite frankly, all of us in the industry know Trioptics from us using their machines. It's also already fairly, actually very strong in test and measurement optics for mobile devices, in particular for those little things, the mobile phones that we all carry around.
We do show these other options for Trioptics here because there's always a discussion of how much more optics can you put on a mobile phone, right? I mean, there's only so many cameras you can just simply put on it. Mine, the one that I just showed, has already four, right? One in the front and two in the back, three in the back, actually. Maybe there will be more on it, and there's a lighter sensor and all of that. But there is a limit as to how many cameras you can possibly pop on a cell phone, on a mobile phone.
Therefore, Trioptics is now also focusing on these other more future-oriented applications in terms of AR, VR, mixed reality, where the quality of the image that you image in your, say, glasses or goggles is even more important and even more challenging to make, simply because it gets ever smaller, and the smaller an optics becomes, the more difficult it is to produce highest qualities. I hope, hopefully, that gives you at least a flavor and an idea. It's a shame that we can't show you Trioptics today. We would have loved to actually show you the factory and to show Trioptics a bit more in detail. We've planned for everything.
Yeah, Monday morning, unfortunately, we have to say, look, I mean, it's pandemic out there, but we'll certainly have, at another point in time, the opportunity to show Trioptics to you, to show you the technology there, the products there, the people there, and we're really looking forward to invite you one more time to maybe Hamburg and show you that. Maybe let's have another look here.
Yes, we have some more questions coming from Research. The next two are referring to Light & Production . Until early 2020, Jenoptik focused on the strengthening of the automation business and was even expecting another acquisition in the Asian region. What has triggered a change in the strategic view? What are the operational advantages for integrating the optics metrology part, which was so far geared towards automotive applications with the other businesses? Any synergies to be expected?
Yeah. On that automotive market pace, I think that's essentially the gist of the whole discussion here. When we started to think about our company in the middle of the decade and when we started to think about the future of Jenoptik, again, we analyzed our strengths and weaknesses. I think we have certain strengths in the automotive industry. We have some weaknesses that I think that's pretty obvious. We have seen the fundamental changes in the business models in the marketplaces in the last 18 months, caused by pandemic, but also caused by external drivers in the automotive industry. Again, let me point out that we do not intend to sort of drop the ball on automotive entirely, you know, right from here and then.
We are certainly committed behind the businesses that we have in there, and for them to be able to fulfill their role in life, the purpose that I mentioned earlier. Nevertheless, I think the outside changes in our marketplace are fairly dramatic. We came to the conclusion that we should focus this business even more. We went about focusing Jenoptik from a diversified industrial conglomerate and transforming it into a focused technology group, focused upon optics and photonics at the end of 2017, beginning of 2018. At that moment in time, we were focusing on technologies more than on marketplaces. We were transforming this company to the point where we're in.
We are saying that now that we are focused on being a photonics player, the next step in focusing this company is on focusing on growth markets. I'm not here to say that the automotive marketplace is not attractive. It's a huge marketplace that's undergoing dramatic transitions. We have good businesses in that marketplace and that helps the electrification of the fleets. 'Cause as I was saying, a company like Prodomax, for example, can produce and actually benefit from the trend towards ever more electric vehicles. However, in the long run, I'm not talking this year, next year, I'm talking really sort of the long run, middle of the decade. We believe that there is a limit to how many cars will be on this planet, and some people call it peak car.
Whether that's, you know, has been already in 2018 or 2019, or whether there was lots of growth or less growth coming out of the current crisis, it's not for me to debate. I'm not a car person. We're physicists and we're optics people and photonics people. We sell products to folks in this industry, and from all we can tell, there will be something called peak car. Maybe it has been already. Is this an attractive marketplace? Yes, it is. It's a huge marketplace, one of the biggest industries that we have. Is it a fast-growing marketplace? Overall, I'm not quite sure. It's a marketplace that's been under a lot of pressure. Our businesses in these marketplaces require a lot of cash.
Times when we are starting or have been starting projects with customers in the automotive industry, requesting upfront payments and all that kind of good things, and have been financed through by the OEMs, they're over. When we do a business or a project in the automotive industry, we have to pre-finance everything. Everything. That drains a lot of cash, and that drains a lot of resources on inventory. Now we can afford that. We always said we can afford that. We have a lot of cash flow in other businesses. We can use that to grow market share in the automation industry, for example, the automation integration businesses. On the other hand, the question that we have to ask ourselves as management, the leadership of this company, and in the best interest of our shareholders, the folks that put their investment and their trust into us.
The question we have to ask ourselves is this the best use of the available resources, or shouldn't we better invest that money, that resource into growing the businesses that are in much faster growing marketplaces, into growing our semiconductor business, into growing virtual reality businesses, into growing smart mobility and into growing life science and healthcare? Again, let me point out we're not here today to say, "Okay, by tomorrow we'll drop the ball on it." It's a good business of ours. We need that business. We need it to produce the cash that we need to invest into the other businesses. What we are saying, though, is we don't see that as a large growth opportunity for us. It's a value maximization play that we are intending to play with these businesses in the automotive industry.
Maybe by the middle of the decade, we will be a bit more even more focused on marketplaces that are here for sustainable future growth and margin expansion. Any other questions in the area?
We have two more questions from Malte Schaumann regarding the financials, but maybe as we will have the financial presentation later on, would it be okay to postpone that to the second?
Yeah.
Q&A session?
Yes. That would be great.
We also have some other questions. The next one is coming from Stefan Maichl from LBBW. Could you also provide a margin guidance for each core segment by 2025?
At this moment, we're giving a new midterm guidance on the total portfolio of the group. As we see it evolving, we guide for around 20% of the sales being converted into operating profit, EBITDA, by 2025. At this point in time, we're not in a position to guide on individual segments. We really, at this point, wanted to give you an idea of how we see the company evolving, how we see it developing, without going too much into the, you know, margins of individual parts. What I will say, though, is we will help you in building your models by transforming it from today's Light & Optics, Light & Production, Light & Safety, and VINCORION setup into the new setup. We'll intend to report in the new setup going forward, actually starting next year.
Like last time when we built these new divisions, we'll help you in adapting your models by providing enough and sufficient bridges and guidance as to how to transform that.
Next question from Stefan Maichl was regarding the automotive related business, the car. I think this question was already answered before. I get to the next question, which is coming from Richard Schramm from HSBC. He has a question regarding smart mobility. In the presentation, Africa was mentioned as one of the markets for expansion, even though you obviously are not active there. What has the reason? Because you can't earn that money there. At the end, only North America was explicitly mentioned as a target market for expansion, but the acquisition there could be extremely or more expensive. Why do you expect that?
We just singled out Africa as an example of a place where currently there's a lot of investment into road safety. Frankly, it's a place where a lot of deaths on the road occur. With emerging countries having more access to funds and more basically wealth, they spend more on road safety. We're not saying that, you know, we have a particular focus on Africa, or anything like that. We're saying that there are emerging countries that, with the availability of more wealth and more national income, they spend more on infrastructure, and with that, they spend more on road safety.
What's important though is they, in the early days at least, typically don't require the same level of, funny enough, accuracy, because we spend a lot of time and effort in our products to make them stand in front of a court of law. If I remember when I was doing a sales ride along with a sales rep of ours, you know, just being on the road with him together, observing how they sell product in this arena. It was pretty interesting to see that these salespeople, they don't talk a lot about technology actually. They talk about how your product helps the governments or the related administrative bodies to make their tickets stand up in front of court of law, should it be challenged by somebody.
Frankly, that's a big driver for accuracy, for, you know, repeatability, for the technology we're using, us and the competitors. It appears that in some of those emerging countries, let's just say that, you know, it's easier to defend tickets in front of a court of law. That's why we wanted to point out that in emerging countries, video-based, software-based technology is more important than what we use in terms of of speed recognition. In terms of North America, I guess that's a different case. Kevin did say that, we're the biggest provider of equipment for road safety in North America and the U.S. by now already. We do that via a partner.
Our partner in large parts of North America, not everywhere, not in Canada, not in all states of the U.S., but in large parts of particularly the United States of America, is VERRA MOBILITY. It's well known that VERRA MOBILITY has acquired a competitor of ours. At this moment, we're still happily distributing and selling to VERRA MOBILITY. They're still happily purchasing equipment from us, apparently. We don't think that's gonna change dramatically in the next few weeks, because those products are homologated, and they need to be proven by, you know, in Germany, the PTB, and in the U.S. by the what's called the NIST, the National Institute of Standards and those type of things.
We do foresee that we will use that opportunity in a way, converting a challenge into an opportunity to build up our own sales channel. If we build our own sales channel there, we know from Europe, from our experience in Germany and the U.K. and other European places, if we have our own sales channel and not via distributor, we can actually make more sales. We can actually make more recurring revenue. We can actually be financially even more successful. That's what we intend to do, and that's why Kevin managed and mentioned that in his presentation. I think we're
We've got another question from Stefan Maichl at LBBW. He's asking if there is a specific sales share target for the Asian market by 2025.
No, we don't have that at this moment in time. It continues to be a focus of ours. We always said that we are underrepresented in Asia. The business of Trioptics helps us. Trioptics achieves more than 50% of its business in Asia already. With the acquisition of SwissOptic, we now also get SwissOptic in China, in Wuhan, a factory that we have. So now we have an even stronger presence in China, which will help us to leverage our own presence in Asia. Is there more we can do? Yes, most certainly. There's more production, a lot more production going on in Asia. So it's still a strategic target of ours to grow our Asian business. We carry that into the new strategic period.
We watch with interest, is not the right word. We watch with concerns maybe the ongoing decoupling or the discussion about decoupling. There's almost like two hearts beating in me. There's a part of me saying, "You know what? World, if you wanna decouple, well, great, you need to buy our product three times now, and not just once, but three times. If you wanna produce chips in the future in Asia and America and in Europe, well, great. Then gives us even more opportunities to sell product." On the other hand, as a human being, as a person, as a leader of a company, I just do believe in free markets, and I believe that the ongoing decoupling or the discussion about decoupling is, I don't know, it's not the right thing in the long run for the world.
To answer the question, again, it will stay on the agenda. We do wanna grow. We are committed to grow our Asian business, but we don't wanna give a tangible concrete target in terms of quantitatively spelling out how our Asian business should look like in 2025. It should be bigger than we have, than what we have today in terms of percentage, growing faster than the rest, but we'll have to see.
We also have some questions regarding the financials coming from Peter Rothenaicher, Baader Bank. Even those I would put to the second-
Yeah.
Q&A session.
Yeah.
We also have three questions coming from Uwe Schupp, Deutsche Bank. The first question is the fiscal year 2025 guidance based on the old group structure or the new one? The second one, back in the 2017 analyst meeting, you indicated that one of the divisions will have their headquarters outside of Germany. Do you stick to that? The third one, a few years ago, you sold Prodomax and INTEROB as good businesses. Today, you indicate a potential for a carve-out. How high do you assess the risk of an extraordinary goodwill write-down in case of an ultimate sale?
The first one has been division headquarters outside of Germany. You can always debate what the headquarters of our Light & Safety business is, but what's certain is that Kevin and a big part of his leadership team is actually located in Camberley. In a way, the headquarters of our Light & Safety business is in the U.K. today. I don't wanna get the folks in Monheim getting the wrong impression here. Monheim is a very important part of Light & Safety . It's a large place for Light & Safety.
The leadership of the division is to 1/2, at least, in the U.K., with Kevin being English and living and breathing and eating and doing whatever he does in England, in Camberley, which is the headquarters of the division in England. We have another part of the leadership team in Monheim, next to Düsseldorf, between Düsseldorf and Cologne in Germany. If you allow me, I would say we kind of like fulfilled that promise to have this business more internationalized. I mean, the fact where a company or a division has its headquarters, whatever the headquarters is, we don't define, by the way, headquarters has been a vehicle for us to transport that we want to make the business more international.
I hope you accept that I kind of like tick that box by saying Light & Safety has its headquarters in Camberley at the moment, and with the big part of the leadership team actually being in England. But it has an equally important site and place in Germany. That was the first question. Second question has been? Oh, guidance. We will talk about that in a bit more detail. Hans-Dieter is going to explain that. Essentially, again, if you take today's business, we do see VINCORION already. We know it already. There is divestments. There might be a bit more divestments. Ralf was talking about product line pruning. We talked about automotive industry. We have to see what that means.
We do see potential acquisitions in both parts. Yeah. Maybe even more in the mobility segment, but also in the photonics segment. What we do see is around EUR 1.2 billion on the total portfolio of the group as it will be in 2025, and a margin of around 20% in terms of EBITDA of sales. In the afternoon, later part of the day, we'll, and Dieter in particular, will explain much more how that is built up and what goes out, what comes in, and how we think about that from a financial perspective. The question INTEROB and Prodomax, though, I think that's a very valid one. You know, I mean, again, let me point out, we're not actively putting Prodomax and INTEROB in the shopping window. This is not another VINCORION saga.
That's important because we don't wanna be in that position. What we are saying, though, is we want to focus us a bit more on the certain marketplaces. It doesn't mean that we don't run businesses and operate businesses that are not necessarily entirely in semicon. We don't wanna only be in semicon. It does mean, though, that the focus on investment and further growth is more on the markets as we described in the presentation. Yes, we were thinking about building a global business of automation integration for automotive industries. That's why we, following and after the Prodomax acquisition, followed on with acquiring INTEROB. Prodomax works very well for us. The intent of Prodomax, of the acquisition of Prodomax, had been to essentially reduce the dependence of Jenoptik, in particular in the automotive industry, from combustion engines.
In the past, in 2017, 2016, before we entered into the Prodomax acquisition, around 80% of all activities in Jenoptik's automotive business, maybe even more, 80%-90%, were depending on combustion engines, internal combustion engines, diesel and petrol cars. Let's put it on the table. That's where we came from, diesel and petrol cars. Now, we can all have our opinions about electric mobility or hydrogen cars, about the importance of climate change. One thing is absolutely certain, the days of the gas guzzling V8 engines are over. That's what we figured, and that's why we said we have to do something with this business. We cannot just sit here and just wait and see it declining more and more.
At the time, we embarked on adding new business to that and slowly and steadily over time, converting it into a business that's less and less dependent on combustion engines. I think we've been very successful with that. I think today, light reduction, I would say about 60%, maybe even a bit more, is not dependent on combustion engines anymore, is actually geared towards e-mobility and alternative engine vehicles. That's great. We also wanted to use the integrating businesses to pull through more of our laser devices, photonics devices. That worked as well. In the last two years, we've sold more laser cutting equipment than in the four years prior to the acquisition of the Prodomax and INTEROB combined. That's a success.
The question again, we have to ask ourselves though is, going forward, the middle of the decade, 2025, to what extent do we want to continue to invest into that business? Or to what extent should we redistribute our investment into other businesses? This is a sheer investment decisions. Nobody here is saying Prodomax is a bad business. Not at all. We love Prodomax. We love that business. Successful. It's a, it's great technology. It's, it's financially successful. But we have to make investment decisions as a portfolio company. If we wanna be winning in a place, in the marketplace, not just playing, but winning in the marketplace, we have to make tough decisions, tough investment decisions. We cannot win everywhere.
The question that we have asked ourselves is, what of those markets we address today fit best our own competencies and provide the best chances for value maximization or rather for more growth and margin expansion? That's what we're saying. We see the growth more in the semiconductor business, in the electronics business. Healthcare, life sciences, and in mobility segments. We see the distribution or the contribution, the generation of cash more in the automotive related businesses. Again, yes, that might mean, could mean that if somebody gives us, offers us, approaches us with offers for a lot of money, then we have to talk. But that's, we have to do that anyways. That's the management of a portfolio company. We have no concrete plans here to start a structured sales process for these businesses, but that could change. That might change.
We have to see. The moment the plan is that they are running more independently, they stay as successful as they are and become even more successful, particularly when it comes to our metrology business. Metrology business is still in difficulties, and we've communicated that all the time. Our metrology business at this moment is not in a place where it's contributing a lot to growth and margin expansion of the group. We will change that. We have to change that. I hope that answers the question. There's no plans to fire sale these businesses. There's no need for that. We believe that they have a good future. They stay within the group for now. If somebody offers us a lot of money, then we talk.
There are still some questions from several people. Maybe we take just one more and skip the rest, or shift the rest to the second Q&A session.
Okay.
The next questions are coming from Craig Abbott, Kepler Cheuvreux . He also had a question regarding PRODOMAX and INTEROB, which I think has been just answered. The second question is referring to semi and electronics. In semi and electronics, you mentioned you plan to enter the display market. Could you elaborate on how complementary the technology will be with the optical modules that Jenoptik currently produces?
Right. I guess from a sheer technology point of view, Ralf is better positioned to answer that. Let me give it a try, and then I hope I'm not talking complete nonsense here. Essentially, in terms of displays, we have a partnership with a large provider to help them building certain production tools, a bit similar, I believe, to lithography tools, but not like the ones that ASML produces or others. It's a different type of lithography, in parentheses, I would say, producing large areas of display technology, and now I'm getting on choppy waters here. I'm a physicist, so I'm supposed to be able to explain, but I refer to Ralf sitting over there. He's probably better positioned to explain it from a technology perspective.
I hope, Ralf, I didn't talk completely on that stuff. It's similar to lithography, but somewhat different.
Right.
Ralf, you would need to unmute yourself before you start.
Oops, I did unmute myself. Can you hear me? No?
Yes, we can hear you.
Okay, good. Yeah, unfortunately we cannot. That's always a problem with the business where we can't disclose a lot about our customers or the technologies. I understood the question, it's about the synergy. For us it's very synergistic, so at the end it requires very high precision optics, in the way of high precision components that are then assembled into a high performance lens. Yeah, we have a lot of synergies with all the other equipment we're providing, be it systems for, let's say, wafer inspection. From a technology standpoint it's very challenging, but it's exactly in the core of our capabilities, yeah, we can provide this to our customers and in the system that it is an entirely new technology for that.
We're using synergistically the technologies we can.
Okay. Thank you. I hope, Craig, that answered at least to some extent the questions as much as we can from a confidentiality point of view. With that said, we would like to take a break now. We'll be back at the top of the hour, 4:00 P.M. German time, which I think is 3:00 P.M. Greenwich Mean Time, so London time, or wherever you are out there. 15 minutes break. At the top of the hour, we come back. We will focus on the more sort of group-wide initiatives that we talked about in the beginning. We'll talk about how we're gonna win the war for talent, for example. We'll talk about how we intend to become even more focused on operational excellence.
We'll talk briefly about the new Jenoptik Business System that we are going to roll out, and we have something very special for you in terms of technology and ESG. Unfortunately, we can't show you our products this time around, although we were so hopeful that we have you all in Hamburg. I think we've got something interesting for you when it comes to technology, something pretty cool. Come back at the top of the hour. At the end, we'll also see the financials in more detail, and then we have another Q&A session at the end. 4:00 P.M. German time, 3:00 P.M. London time, at the top of the hour, we will reconvene and restart. Thank you very much so far.
[Brake]
Let's reconvene.
We would like to share with you Jenoptik's vision for addressing one of the most pressing .
The next couple of minutes, we talk more about factors that we need. Whoa. Are we back in webcast?
Mr. Scherrer, are we back in webcast?
We are live.
Okay. Well then again, at the top of the hour, the next half an hour or so, we're going to focus more on things that we drive from a corporate perspective. We'll drive more from a corporate perspective to support our [inaudible]. We'll talk a lot about HR in a minute. I do have an echo here. I hope that's okay with everybody else. I have an echo here, but I hope you guys can hear me out there, and you can hear me right. First topic, HR, winning the war for talent. Later on, we'll talk about the Jenoptik Business System. Let's focus on HR. HR is a fundamental player. We need the right workforce. We need people that help us executing our vision. We need people to help us deploy our strategies. We need the right mindset.
We need the right target systems. We need the right compensation systems. Let me introduce Maria Koller to you. Maria and I know each other since quite some time. We actually worked together in the past. We both have been, dare I say, shaped by former employers. Danaher, worked for Danaher for a while, and those of you who know Danaher will probably agree that it has a certain impact on people and a certain mindset and a certain culture. Maria will share with us our plans going forward, again, winning the war for talent. It does include certain compensation structures that we want to propose and roll out.
It does include even more focus on More Value, on value creation, and how we can pull people together to go into the right direction, in the joint direction, and frankly, to be even more interested in our share price. Maria, over to you.
Thanks, Stefan. I'm very pleased to talk to you today, and I hope you can hear me well. If you go to the next slide. As Stefan indicated, we will share with you today our plans from a cultural transformation point of view, how we wanna deliver on our strategy, which you heard previously, until 2025. Before we do so, you can see on the next slide, we wanna pause here a bit because we came along actually quite a long way since we started. As you remember, Jenoptik has been a conglomerate of very diverse businesses with very different business units, different size, and everybody of them operating in their own way with their own corporate culture.
When we started in 2018 by putting together the strategy for 2022, we knew that our culture transformation will be one of our biggest challenge. I wanna share with you how far we came so far and what we have achieved and where we still have to put more focus on. We only did not put our new brand house on the wallpapers in every offices globally. We really worked hard because culture transformation doesn't happen when you talk about it. You really have to act differently, and you need a little bit of time in order to transform one after the other. What have we done? What have we achieved? I tried to put it here together on the different buckets. What have we done to get more open, become more open, become more driving and confident?
Let's start with very simple, basic things. We put together a performance feedback system globally. No matter in which entity you work for us, if it's in Japan or in the U.S., the performance feedback process is the same. It's a very simple one but quite effective. In addition, we rolled out our engagement survey globally. We measure that now at least once a year, and every new acquisition which joins us, there's no discussion about it, joins our engagement survey so that we know where we stand and where we can improve ourselves. We also work very hard on our diversity initiatives. What does it mean? We wanna have more international profiles in our management positions and more females. We launched globally a lot of initiatives in order to become better on our diversity initiatives. What else have we done?
We used actually this year to launch a pilot and with LinkedIn Learning because the pandemic forced us to offer more learning opportunities globally for all our employees. Actually with January next year, no matter in which entity you sit with us, you can join the big database to learn and improve yourself on LinkedIn. We've done a lot of communication in terms of our culture transformation. There probably has not passed one week where our employees didn't read any sort of success story or model story we launched on the intrenet. We prepared ourselves for mobile working even before the pandemic started. Right now, we are in the process to prepare ourselves in terms of new work and how we wanna work when hopefully the pandemic is gone at one stage, in terms, we call it hybrid working.
What we started very early in the process is to align our target and bonus system globally. Right now, we only offer five different bonus schemes, and only our sales force still have individual targets. The rest of us have globally aligned financial targets. When our supervisory board approves our budget November, December, actually everybody of us knows what the targets will be, for the next year. There's no discussion about that. That sort of globally aligned target bonus system helped a lot in terms of bringing everybody in the same boat and working together. Where we also spend a lot of time the last two years is to get better in our administration processes. We call that Project Speed, and we worked in all our administration functions in the holding, but also in divisions.
In IT, HR, finance, accounting, we launched projects to become leaner and quicker in terms of our admin processes. As we speak right now, we actually launched yesterday our first phase on SuccessFactors globally, so that we get more transparency to our workforce, not only in Germany, but in every entity we operate in. Stefan mentioned it already. We started this year to prepare ourselves and define which business system does fit to Jenoptik. We didn't just copy and paste the business system which is on the market. We took the time in the MC for almost half a year to define what we really wanna do and how we wanna get that started.
We hired actually ex-colleague of us during the summer and actually launched already two very successful projects this year, so that this January first we are fully prepared to roll out our Jenoptik Business System globally. Also with the new brand house and the values, we changed our employer branding. If you follow us right now on the social media channels, you will find a different Jenoptik than probably three or four years ago. More color, more diverse profiles, more focused messages. What we also did is we launched some development programs for all hierarchies here, not only for the top executives, but also for new talent in order to groom them for the next challenge.
Last but not least, we graded all our positions globally, which is important to compare ourselves internally, who is responsible for what, who does what, and make positions comparable. Also with having that now in place, we know at our fingertips where we pay in the market from a compensation point of view, and where we have still some action steps in order to come closer to the mid-market. That are all sort of the list of activities we've done this year or the last three years in order to come a one big step further in our culture transformation. If you go on the next slide, you actually see that we also measure what we do. We check on a regular basis how we perform and where we have to countermeasure.
I picked here four KPIs we mainly focus on. The first one is diversity. We measure on how many internationals and females do we have globally in all our management position. We started that actually in 2020, and as you can see here, we moved closer to our first step of target, 30%, and our 25-year target is 33%. We do that on a quarterly basis. We also measure ourselves actually with an external company with the Women's Career Index so far in Germany. They check us on how do we support females in management positions. We've done that now twice, and last year, we even have been nominated as the Achiever of the Year in Germany. That actually proves that we do couple of things right in terms of our diversity initiatives.
We also measure on a global scale annually our engagement score. As you can see here, we started that in 2018, and we're performing in the right direction. Unfortunately, we actually got hit this year. We even have been better last year, but we say that's a little bit the corona blues, which we all sort of got. But we definitely wanna improve that also for the next years. Last but not least, we measure very carefully our voluntary attrition rate. People, employees who are leaving us on a voluntary basis, and we measure that globally. You can see here, we decreased our turnover rate from 9% to 5%, which is actually a nice benchmark globally that people seem to be happy with us, and wanna stay with us. Where are we right now?
If you go on the next slide, we could of course now sit here and say, actually, obviously, we've done a couple of things right, but is that enough? If we are honest to ourselves, all what is done has really made us better in terms of open. We have a much more open culture as we ever had before. Saying that, we think we really have some room for improvement on driving and confidence. What we have discussed and actually also decided is we wanna use the next couple of years to get better in terms of driving and confidence. Right now, we sort of are stopped and paused and say, you know, what have we done good? Where do we have done better?
We are sorting out, as we speak to launch our SuccessFactors, to be ready for next year, but also focus our experts and form an actually globally aligned talent management team to make us better and launch our initiatives quicker and faster as we've ever done before. We also define right now leadership principles, which actually go pretty much along with our new values, open, drive, and confidence, but we'll be more transparent and actually more accurate in order to, for our leaders to understand what we expect and how we measure them. We wanna launch them next year. We actually call our initiatives for next year driving confidence performance because we wanna get better where we are right now, not in an arrogant way, but in a very confident way.
What exactly do we plan to do? If you go on the next slide, you see we have identified three sort of leverages we wanna get focused on. The first is individual. Our previous initiatives, open, driving and confidence, has been a very sort of bottom-up wave we rolled out through the company. What we have decided is we have to work closer with our managers. We will launch very crystal clear leadership principles. There will be 10 of them, explain them, develop our managers there, but also sort of ask the questions, is that really the company you wanna work for? Do they really fit for us? We wanna develop them, invest in, but also assess them more crisp and clear as we've done in the past. We also need to shift a little bit gears in terms of recruiting.
Focus less on recruiting skills, but recruiting more mindset and potential because the world is changing so quickly. It's easier to train skills than sort of develop mindset and potential. Secondly, we have to work on organizational setup. Stefan and I are coming from a company where actually the organizational setup was reviewed on an annual ba. Is it the right setup for the strategy we have to finally agree on? We have to do it in a much more systematic way as we've done it in the past, review that regularly, and also review the talent we have in our internal talent funnel. Do we have enough talents who wanna do, or are prepared for the next step? I always say, actually, the talent funnel is at least as important as the order entry funnel. We have to put more focus on that.
We also wanna use every open positions we have as a chance to change. Is that open position a chance to change processes, change organization, instead of just replacing it as it has been before. The nice thing is that these processes, this re-reviewing the organization, we can very nicely link the Jenoptik Business System and put it in the standard work. What we still continue to focus on is our processes. I think we came a long already, as we came across a long way. We are definitely better, fast, and quicker, but we still have to improve there. Processes will still be in our focus. Also for that, actually, that is a very nice and close link with the Jenoptik Business System. Is that all enough? No.
What else do we have to do in terms of winning the war for talent? You will see on our next slide. We are very convinced that we have to offer a share-based compensation model to our employees. We have that right now only for a very limited and small group of people. Actually the demand does come, of course, also from the German organization, but especially our international colleagues are requesting that. If we wanna get better in terms of attracting talents, but also retaining them in Optics, we are convinced we have to offer a share-based compensation model. How we wanna do that? Let me say one thing. We wanna really take enough time to explore the right setup because you can do a lot of things wrong if you rush that through, and we don't wanna do that.
What we will do with early next year, we wanna explore all the options we have, and you know that better than I do. There are options, there is [RSUs] . There are different forms of restrictions you can link with that. You can do different target groups. There's a lot of things we have to explore together with our supervisory board and make decisions which model fits best for us, which model fits best for every target group inside the company, and how do we finance that, and also how do we administer that. Those questions we have to ask ourselves, answer next year, and we wanna be ready for a rollout beginning of 2023. Not next year, because as I said, we don't wanna rush it through. We really wanna take time to do it right.
We have to find the base for that. I think we are ready. We have to get our options together and do some decisions. Those are the things we plan for the next couple of years. I think we proved that we can do that because a lot of things have already happened. By saying that, I'm handing back to my colleague, Stefan. Thank you.
Maria, thank you very much. I think the things to take away our burden. We have talked about hiring mindset more than skill. Of course, I know business skill is important. We all know that Jenoptik's people, you can't pick off the trees here, not even again you can. There is a war for talent out there, and we need skill. That's pretty clear. We are fundamentally convinced that we can train skill, but we can't train mindset. We will focus increasingly on mindset and on getting the right people and offer them all sorts of training opportunities and move them with us, take them with us. I believe it's good to have right skills. It's good to have the right mindset. It's important to have the right mindset. We will develop Jenoptik into a place where winning is key.
If you wanna win, come to us. If you're okay with just playing, maybe you'll find yourself another place. With that said, talking about playing, talking about winning, let's switch gears one more time and focus a bit more on operational excellence. Can we go to the next page, please? Go straight to the next page. Thank you. Maria and I, we both worked for Danaher. It's just one example of a successful, very successful company that employs the right business system. There are others out there. The business system is important for every company. I said in the beginning, it all starts with a vision, and our vision is a brighter future as power of light. Aspiration is important. What we aspire is important. We want to reach for more.
By the way, the word more you can find everywhere in Jenoptik. Strategies are important. We need to understand the game we are playing. We need to know how we win the game we are playing 'cause we wanna win. Also important is how to deploy that, how to make it work in everyday lives, how to explain to everyone in an organization what his or her role in that game is, in that team. Nobody wins alone. We all win only if we have the best teams with us, behind us, if you're part of the best team. That's why the HR initiatives are so important. Business systems help all of us to solve the challenges we as management face and to make sure that we all essentially go into the right direction.
A business system gives orientation to the organization and helps all of us to turn strategy into reality, to achieve aspirations and to make visions happen. At Jenoptik, we have started to build a business system this year. It was really just sort of dipping our toes into the water. We have started to run Kaizens at Jenoptik this year, again, just to sort of get used to the tools and get used to the terminology and dipping toes in the water here. Starting next year, though, we will roll out a new business system for Jenoptik. We are not going to go into too much detail here today, but what's important for me is we're not copying. Of course, most business systems are somehow based on Hoshin Kanri and on what the friends at Toyota, Fujitsu did do for a while, are still doing very successfully.
We want to build out our own system, a system that suits us, a business that fits our needs, a business that fits our marketplaces and our organization and frankly, also our DNA. It's very important. If I can go to the next page, please. In 2022, we are starting with the fundamentals. We're starting to build out the tools and processes we need. We're starting to build out our toolbox that our businesses are supposed to apply as it fits their needs. In 2023, we will focus on our customer. We will focus on our go-to-market and the way we bring our products to the marketplace. Go-to-market with the commercialization tools will be the focus for 2023. In 2024, we aim to overhaul our innovation process.
We are an innovative company, and I'll talk about that a bit more in a second. We're an innovation-driven marketplace. Nevertheless, we will continue to become better. Continuous improvement, even in innovation, is what we're aiming for. In 2024, we'll start to focus and roll out innovation-driven tools. Finally, in 2025 and forward, we hope that we have lean converted many parts for our company. Lean conversion is essentially the headline over and above Jenoptik businesses. Let me go to the next page and just quickly try to explain what deployment of strategies and Hoshin Kanri way of doing it means for us. Today, we communicate for the first time our Agenda 2025 or "MORE VALUE" approach, the new chapter, the new volume in our book of strategies for Jenoptik. It's a four year agenda.
We aim for financial targets in 2025. We aim for gross and margin expansion for "MORE VALUE" until the middle of the decade. We use Hoshin Kanri to break it down into strategic planning every year, so every year gets its annualized targets so that we can track how much we're making progress, how good our progress actually is towards 2025. We will use tools to break that down into monthly goals and actions. Every organization, every part of our organization, every business within Jenoptik will know what his or her role is, what its role is in achieving our Agenda 2025, our "MORE VALUE" ambition. We'll break it down from four-year targets agenda to every annualized target and into monthly action plans and what folks call bullet chart. I do know that works. I have seen it works. A very, very powerful tool at sourcing.
It's not something that you can just do on an afternoon, but I know that it works. I'm absolutely convinced that will help us to make our strategies reality, to deploy our strategies, and to achieve our ambitions. With that said, switching gears one more time. I would now like to talk about innovation, our innovation power, and how much we can make the world a better place, how much we can make sustainable business actually happen. We don't have a presentation, though. We thought for quite a while, how can we bring in this online way to you how much innovation power we have? We finally came to the conclusion that it's best to put together a video. It's a bit longer. It's 10 minutes or so, but it's worth every second. Trust me. Please stay focused.
In the next 10 minutes, instead of me talking, instead of my colleagues talking over PowerPoint slides, we will just roll a video in which we will hopefully convince you that Jenoptik is both very innovative and very sustainable, and actually can take things to Mars. Let's roll the video.
We would like to share with you Jenoptik's vision for addressing one of the most pressing issues facing the world today, the sustainability of industrial practices during climate change. We at Jenoptik have an important role to play to enable sustainable industrial practices to enhance our lives, made possible through the power of light. Jenoptik is directly involved in a range of businesses and manufacturing industries, mainly infrastructure, healthcare, communications, and mobility. We prioritize innovations that have a positive impact on the environment and sustainable industrial practice. In every sector, we continue to find new ways to achieve better solutions by innovating. Our enabler is the power of light, also known as photonics. Photonics touches every part of our lives, from the tires on your car to the globe-spanning network of satellite comms working right now to deliver real-time meetings, conversations, and the internet to you.
One prime example is our role in improving the quality of photonic integrated circuits. We see an incredible demand for ever higher data transmission rates. Photonic integrated circuits or PICs offer the potential to improve the performance and lower the power consumption of the thousands of data centers around the world by providing an efficient means to move towards ever higher integrated optical communication devices. That's why we invented the UFO Probe®. A single probe card to scan the quality of thousands of silicon photonics chips which are at the heart of optical transceivers. Silicon photonics chips are essential to achieve the high data rates offered by glass fiber communication. The UFO Probe®, the world's first solution to test silicon photonics chips at high levels of production on whole wafers. This strategy will give us faster internet at lower power usage.
The UFO Probe® will also give lower production costs, thereby reducing waste and saving energy, which led to our strategic acquisition of Trioptics in 2020, with the vision of vastly improving manufacturing quality. There are now 7.1 billion smartphones in the world. Each smartphone has one or more highly sophisticated camera lenses. Every single lens, infinite, 40 cm zoom, or fisheye that goes into a smartphone must be precision measured and tested. We are talking about many billions of lenses. When smartphone lenses are mass-produced, it's important to detect the smallest quality issues early on. That's how we avoid lenses with small imaging issues from being wastefully processed in the next step and ensure high quality in the end product. With unrivaled accuracy, we are enabling our customers to work with tighter tolerances and higher output. Consumer imaging goes well beyond the smartphone in your pocket.
We are dependent on photonics to assist drivers to avoid collisions and provide driverless vehicles. We are seeing an increasing number of driverless vehicles on our roads and inside our factories, moving and storing manufactured goods. Nearly all of this is based on LIDAR, the technology the vehicle uses to sense its environment. Jenoptik is responsible for many LIDAR technologies, including the polymer optics of these devices. Our injection molding approach is scalable to produce from 10,000 to 1 million custom-designed lenses. Our approach consumes less energy in production, thereby lowering emissions. We also build complete end-to-end solutions for the automated testing of optics. Our camera production line operates 24/7 and aligns, assembles, and tests a camera optical system every 12 seconds. This production concept results in time and energy saving, total quality control, and waste minimization.
Augmented reality and virtual reality, also known as AR/VR, are growing at an extraordinary pace. Over 6 million VR devices are forecasted to ship in 2021, which is over 50% of the current installed base of 10 million units. It's wild how virtual environments can make you feel. You will hesitate to jump out of a virtual airplane, and you will hold your breath in a virtual underwater world, even when you are fully aware that you're not really there. Perhaps more importantly, AR/VR are set to become true enablers of industrial design. Now we can share a vision of an imagined product before it is even a physical prototype. AR/VR will allow people to work collaboratively together in a metaverse. It could transform the way we work, reduce the need to travel, and contribute to a substantial reduction in emissions from transportation and infrastructure.
This will allow product iterations without physically building anything in the real world, creating a leap in design efficiency and a reduction in material consumption. Adoption of AR/VR is driven by the comfort and capability of the headset. Otherwise, it is impractical to use. Jenoptik are experts in lenses, including lightweight high-aperture lenses such as Fresnel lenses. These lightweight optics are ideal for lighthouses as well as VR headsets. Fresnel-type lenses allow a large aperture and a short focal length without the mass and volume of a conventional lens. This is an ideal approach to designing lightweight and compact VR devices. In the realm of healthcare, photonics plays a major role in research as well as a myriad of medical devices. Over 400 million people suffer from diabetes today. The number has grown over decades, and it is considered one of the major diseases in our world.
Preserving the eyesight of diabetes and other patients is a major challenge. Thousands of retinal laser treatments are performed each year to address retinal degeneration and stop premature blindness. Our tiny JenLas disk laser used in, for example, vitreoretinal surgeries, is a wonder of efficiency and reliability. It is highly compact and can be fitted into medical devices, taking very little space and energy to produce a sharp and accurate 532 nm beam. It is the gold standard for retinal laser-based therapies. In 2020, the cost of producing solar energy became cheaper than producing energy from oil and gas. Suddenly, it became economically feasible to run huge solar farms. Photonics allow us to see what the human eye cannot. Infrared, ultraviolet, and beyond. Thermography, the technology of heat measurement, enables our clients to operate solar power generators at optimal performance.
By measuring receptor panel temperatures in real time, we can adjust their exposure to light and optimize energy production. This will lead to the broader adoption of solar power as a source of sustainable energy. One of the major sustainability issues is road traffic. There are more than 1.4 billion vehicles in the world in 2021, and over 1 million people die in traffic accidents every year. Congestion and safety are major concerns, and that means traffic control is essential. Photonics provide us with the ability to detect and control traffic better than any human. This is important to make our roads safer. Our new TraffiPole camera mount is passively cooled, allowing it to operate in the harshest environments without air conditioning, reducing energy consumption. TraffiPole was honored by two German design awards.
TraffiPole will be deployed in countries where operating temperatures are extreme and distances are vast, such as in the Middle East. TraffiPole not only saves human lives, but also saves on energy use and costly maintenance over large distances. Photonics even has a role to play on optimizing energy consumption of the billions of vehicles on our roads. Whether powered by renewable or fossil fuels, vehicles consume vast amounts of energy. Tire production is an essential component, and optimizing their performance, particularly the tread pattern, can positively affect fuel consumption. Jenoptik has invented for the first time a technology to fully automate tire pattern cutting. Laser processing with JENscan® automates the generation of prototype patterns for testing, reducing it from five days to a single day. By rapidly testing and refining prototypes, manufacturers can identify optimal designs for saving fuel.
Although more people have access to the internet than ever before, 40% of people still remain out of reach. This causes inequalities among populations and deepens social and cultural divides. Places like the jungles have significant populations separated by great distances. Installing reliable communications would mean we could bring education, information, and health to isolated and under-resourced communities. Jenoptik, together with leading companies, are creating a new way to provide information access through free space. Free space optical communications enable every healthcare provider and every educator to offer today's possibilities to more children wherever they may be born. Our early investment in children will improve their opportunities for their entire lifetime. Jenoptik technology serves us on Earth as well as in space. Mars Rover uses Jenoptik optics and photonics for roving, collecting, and checking the integrity of samples.
By pushing the limits of what technology can achieve and thinking afresh, we are discovering new and innovative ways to address our present and future challenges here on Earth. Jenoptik's photonic expertise and drive for innovation enable many amazing applications for a sustainable future. We believe that Jenoptik has a role to play in the sharing and cross-fertilization of ideas across a range of industries. Photonics is our experience, our expertise, and our enabler. We want to share it with the world. Jenoptik, More Light.
I hope that has demonstrated vividly and in a way that you can hopefully all remember how innovative Jenoptik is and how much we can contribute to brighter futures with the power of light. Of course, we don't do that just because. We have bigger purpose behind it. We have big vision. We also wanna make sure that it translates into financial success. Our CFO, Hans-Dieter Schumacher, whom you all know, will explain to you how all of that is going to translate into more growth and margin expansion and into additional focus on value, maybe a bit more than that part. Hans-Dieter, over to you.
Thank you so much, Stefan, and very good afternoon to all of you. I'm still impressed by this video every time, and so often I see it, what Jenoptik is able to deliver. If you follow me on the next slide, please, you'll see our financial targets will be in alignment with our More Value strategy until 2025. Our ambition is to significantly grow our business organically and non-organically and improve profitability. Our balanced portfolio offers more resilience against potential market fluctuations and drives growth. Having said this, our key performance indicators revenue will increase from around EUR 0.9 billion to EUR 1.2 billion. We will increase our group EBITDA margin to around 20%, and this is the More Value aspect which we will add to the future figures we share with you.
We will increase our return on capital employed, excluding the goodwill, to above 20%. Why is this so important? We all think that investing so much in the transformation of Jenoptik and in the potential you have seen the whole day today, in this growth perspective, we need cash, we need cash flows, we need investments, we need the financing power. Therefore, we do not want to forget that we need to have a return on our capital employed, because our capital employed will increase over the years to come. Therefore, we have made this addition to underline the More Value strategy until 2025. If you then share with me the next slide, you will see that the development of the group in the next years to the target of EUR 1.5 billion is ambitious.
You first could argue, "Well, you have already reached between EUR 800 million and EUR 900 million at year-end." Don't forget, since we have signed the contract with STAR Capital of selling our VINCORION business to them, we have already booked them under IFRS 5. Meaning from now on, already EUR 150 million-EUR 160 million in revenue is out of our top line. Meaning with the potential divestment, including VINCORION, we have done or will do a step down in revenue of the group. Therefore, the target of EUR 1.5 billion is ambitious. You see it here, we have simulated it. It should be around 17% if you take these potential divestments, including VINCORION into account.
Our core business, our actual core business, which my colleagues have presented to you, will grow at a rate of 7%-8%, which is nice, which is good. You will see Berliner Glas and SwissOptic also have good growth, combined growth rate in the years to come, and we will have some acquisitions to reach this EUR 1.2 billion target. From our perspective, it's a journey and it's an ambitious target. It will be a mixture of further acquisitions and divestments. Ralf has already explained here and there, we will have a portfolio of adjustments. All in all, and we have talked about some parts of the automotive business. All in all, from the year-end, including VINCORION to 2025, it's a CAGR of 8%.
If you take this divestment, including VINCORION into account, 17%. Having said this, please follow me on the next slide. Here you see our profitability, our EBITDA margin will steadily grow. Here on this slide, we have done some exercises to make it comparable for you. If you see the 2020 figure, EUR 121 million EBITDA, with a margin above 15%, it's an adjustment done. The reported figure has been EUR 112 million. You may remember that in this year we have booked EUR 19.1 million accruals for restructuring, which has already shown in this year and will show in the years to come, their positive impact on our EBITDA development. We have taken into account this EUR 19.1 million as a accelerator, as a positive impact on the reported figure.
We had also around EUR 10 million impact of the short-term work worldwide because 2020 was the COVID pandemic on a very high level. If you summarize this, you end up at an adjusted EBITDA of EUR 121 million or above 15%. In this year, Stefan already mentioned in the beginning that we are aiming for 19%-19.5% EBITDA margin, including the earn-outs from Trioptics and ITOP. We have taken them out in this slide here to make it comparable and to compare apples to apples. Here you see that we are aiming for 16%-17% underlying EBITDA margin in this year.
Don't forget, if we are selling VINCORION and the closing will happen throughout the months to come, we will lose obviously some EBITDA, and therefore we will have a little bit less EBITDA. The organic growth will bring EBITDA to our group. Berliner Glas and SwissOptic obviously in the same manner, and the acquisitions are coming on top. Having said this, you see that we are aiming for around 20% in 2025. It's possible, and it's coming from the focusing on our photonic growth segments, and it's underlined by the Jenoptik Business System Stefan has just explained to you and Maria has talked about, when she has shared with us our intention on the human resources side.
All in all, it's a very ambitious target, but we think it's possible, and we can deliver our promises as we have done in the past years. If you follow me to the next slide, please. I'd like to share with you our Return on Capital Employed targets. You'll see here some simulation. It's very important that you get it. It's a simulation because actually, we are undergoing the purchase price allocation exercise with Berliner Glas and SwissOptic because we have today the closing, so it will be now in our figures for the month of December already in this year. We have done a calculation there. We have done it with Trioptics. For further acquisitions, we have done a simulation based on the same ratios we have experienced with Trioptics and Berliner Glas and SwissOptic.
It's a simulation. It's the best effort. It's the best guess. You see here a very important information for you. You are always asking us about our working capital percent of sales because it's free cash flow relevant. You are absolutely right that it is a very interesting and very important performance indicator we have on our agenda. You see here that over the period, our working capital in percent of sales will come down, and our target we are aiming for is clearly below the 13% line. We are in our simulation; it should be possible to reach around 23%. Where is it coming from? Obviously, our divestments and mainly already VINCORION, because in VINCORION we have inventory stocks available for more than 30, 40, even 50 years.
If you imagine a Leopard 2 tank is driving 50 years, you need inventory to support your customers every day, every month, every year. They need you. They need your products and offerings and solutions. The same with the wagons of Eurobalise. If we are able to close the selling of VINCORION, we will make our balance sheet in terms of working capital a little bit lighter, a little bit more in the right direction, yeah. You see it here. On the opposite, growth and the acquisitions will add some capital employed without the goodwill. All in all, we are aiming for the 20% return on capital excluding the goodwill, coming from 15% in 2020, probably around 18% in this year.
We are aiming for around 20% in 2025. This is very important because we have to handle this ambitious Agenda 2025 with the "MORE VALUE" . We have to handle it with the financing of the group. I will show you now how our firepower will develop and what our assumptions in this direction on the next slide please. We have done a simulation, also very important simulation, based on very important assumptions you see in the lower end of the slide here under the headline assumptions. Very important in the whole time period here from 2021 to 2025. We have assumed that we will not be above the target leverage of 3x EBITDA in relationship to net debt.
This is very important because this is the line between an investment grade and a non-investment grade. Our intention is to stay always within the investment grade status because it helps us very much to finance this group. In between it may be a little bit above. We have the frame with our financing of the group actually. This is our target is to keep the company around this leverage of 3.0. If you see here the simulation we have done, we have said in 2021, we had EUR 270 million, around EUR 269 million firepower under this assumption with our EBITDA.
When we have done the acquisition, and we are closer today with Berliner Glas and SwissOptic, and then our firepower under the assumption of target leverage of 3.0 is done. At the year-end, we will be around 2.9, 3.0. Then, we will get some means from some proceeds from the sale of VINCORION. We have written it here down. So it will increase our firepower a little bit. We have potential divestments. We have done an assumption in the simulation what we will collect from these potential divestments. Then don't forget, from our annual general meeting, we have an existing resolution that we are allowed to increase our capital by 10%.
We have done it in simulation, and our assumption has been that we will do it based on a share price of EUR 40. We are today, after today's close, already. Our capital increase 10% based on this share price, because we have to take into account that there will be a discount on new shares, and we have calculated it 15%, would bring us another debt capacity. Then, we have done the assumption in the years to come, until 2025, very conservative, that we only bring EUR 50 million per year from the operations as cash, an additional firepower. Not having taken into account the positive EBITDA development in the years to come. Very conservative. You see it here.
The result is that we can do our journey, our value journey until 2025, with the clear assumption that we will stay as an investment grade in the targeted leverage of 3.0. From a financing perspective, we are ready to support to underlie the strategy More Value until 2025. This is very important. Having said this, I'd like to hand over to Stefan again and he will summarize the Agenda 2025 for all of us. Stefan.
Hans-Dieter, thank you very much. We believe that we have ambitious financial targets as well. We also believe that we have ambitious targets when it comes to Return on Capital Employed. We're going to report that Return on Capital Employed to our investors and friends of Jenoptik in more detail going forward. Let's go to the next page, please. Summary of Agenda 2025, More Value. I hope that throughout the day we've been able to convince you that we came a long way the last four years. There is ways ahead of us, miles to cover. There's a lot we can do, a lot that we want to do, a lot that we want to achieve. Volume one of the More Light strategy of Jenoptik is almost done. We've ticked a lot of boxes. We delivered on a lot of targets.
We're now wanting to start writing volume number two, "MORE VALUE" . We continue down the road of focusing our business, focusing on technology, but now even focusing on some marketplaces. Before I go into more of those details, let's go to the next page. We've talked a lot about markets. We've talked a lot about market dynamics or a lot about technologies, but there's also always a discussion about megatrends. We are absolutely certain that there are megatrends in this planet, in this society, that will drive the demand for autonomy solutions way into the future. The digitization of our world, something that had COVID-19, unfortunately, one has to say, as a catalyst, something that grows ever bigger by the hour, essentially. This digitization of our world wouldn't be possible without optics and photonics. The Internet wouldn't work without light.
We don't even have to talk about the chip crisis. There's a growing demand for semiconductor and electronics applications in our world. The usage of augmented and virtual reality and all the things that we talked about earlier today, in particular, Ralf alluded to. Healthcare and life sciences. There are two fundamental trends. There are ever more people on planet Earth, and they become ever older. The older we get, the more stress we put on healthcare systems. In order for our healthcare systems to be able to cope with that demand, they need to become more effective, more efficient. Photonics and optics helps by in that course. Don't even have to talk about DNA sequencing or lifestyle imaging or all of those good things that we're working on together with partners around the globe.
Fact of the matter is, modern life science and healthcare would not be possible without light and optics. When it comes to manufacturing, we really have to find new ways of producing goods and services in a more sustainable manner. We want to preserve this planet, and for that, smart manufacturing is absolutely required. It's not possible without life science, without optics and photonics. We talked about mobility. We talked about the fact that every death on the road is a death too many. We also talked about the fact that we need to find new ways of directing traffic. We need to find new ways of having highly congested areas cleared up, and maybe for even charging a bit more if one absolutely has to drive into a congestion area, into a congestion zone. Smart mobility needs solutions, and they are based on optics and photonics.
We do believe that our markets will grow throughout the decade, and we can outgrow, and we can participate from that growth big time. Big mega drivers behind our business plans. If we can go to the next page, please. We aim for Jenoptik to focus increasingly over the years on three core markets. We aspire to bring the next level of digitization by contributing photonics-based, optics-based products, and enabling the production of those devices. We want this market to contribute about 50%, roughly, of the overall turnover of the group in 2025. It's a very attractive, fast-growing market. It enables a lot of profit, margin expansion, but we also know that it can be pretty cyclical. To support the resilience of our group overall, we have two other interesting markets in addition to it.
We aspire to be the leading provider of photonics solutions in terms of OEM partnership, really helping our large corporate customers to improve the lives of millions of people around the globe. We aspire to become a global provider of full solutions when it comes to Smart Mobility Solutions, being not just a hardware provider in that part of our business, but expanding on our recurring revenue streams, even more focused on software and services going forward. We'll set up our businesses around business models. We'll group together our business-to-business activities. We'll drive growth and margin expansion predominantly, not only, but predominantly focused on hardware and supply of services with key account structures and key account customers. We drive our Smart Mobility in a business-to-government fashion going forward.
We believe that with that set up, we are able to produce about 20% of that around EUR 1.2 billion in sales by 2025 as an EBITDA margin. Margin expansion is important. We want to drive more value. We want to drive more ROCE, as discussed by Hans-Dieter . We aim to have a 20% ROCE excluding the goodwill by 2025. If we can go to the next and last page. In this next chapter, this next volume rather of our strategy book, this next stage of our journey, we want to create more value for our shareholders. We aim to do that by transforming Jenoptik, not just into a globally leading pure photonics player, but by additionally focusing on three highly attractive growth markets. Now, let me point out one more time.
We're not saying that we dropped the ball on everything else by tomorrow. We have a lot of important businesses, for example, in the automotive industry. We do believe that when it comes to investment decisions and return on capital employed, it's more attractive to operate in our new three core markets. The ROCEs that we can get from those markets are simply higher. Return on capital employed is more attractive in those segments. We want to drive organic growth, and we wanna spice it up with non-organic growth activities. We want to continue to manage our portfolio. That does include acquisitions and divestments. We believe that there will be more acquisitions, maybe, and a larger acquisition percentage in the Smart Mobility Solutions segment versus the Advanced Photonic Solutions segment, where we did a lot of large acquisitions already in the last 18 months.
We have demonstrated in the last four years that we can deliver. We deliver on our financial targets, on our strategic targets, and the best proof of that is the expansion of profitability that we managed to pull out since 2017. We do believe that this journey continues. We'll expand our margins, we'll step up our profitability, and again, put about 20% of sales into operational profit in terms of EBITDA by 2025. We can do that based on an increasing firepower, financial power that helps us to do both actually, to do transformative ideas when needed, and to do bolder acquisitions when it makes sense. All of that together is the next volume again in our agenda. It's the volume we call More Value. That said, let me break here. We're now more than happy to receive even more questions.
I know that we already got them. Before we go there, thank you very, very much again to all of you for joining us online. It would have been so lovely to see you all in Hamburg. We would have liked to show you our products in the flesh, to see you all, to go for dinner tonight and to show you Trioptics tomorrow. Unfortunately, again, the pandemic changed our plans one more time. As I said earlier, we'll fight back, we'll win this game. There's no question about it. We are stronger than COVID altogether. We will win that, and we'll come out of the pandemic even stronger than before. Okay. Questions. I'm looking into, again, the engine room here, and we'll get questions.
Yes, we have questions. I'll start with those which were sent to us already during the first Q&A session. The first two questions are coming from Peter Rothenaicher, Baader Bank. To what extent does your sales target of EUR 1.2 billion for 2025 include sales of Prodomax, INTEROB and Hommel? And the second one, what investment in EUR million would be necessary to achieve this target?
Look, I guess you will understand if I'm saying that we will not give any particular guidance on individual businesses or product lines. We've never done that in the past, but I think we can summarize how much sales contribution those businesses roughly are going to have or would have this year. We are going to help you, as I said earlier, in transforming your models. Hans-Dieter , maybe you can help us in just roughly indicating Prodomax, INTEROB, Five Lakes and Hommel together, how much sales are we talking?
Yeah, I'd love to do. Thanks for the question. Actually, on 2021 figures, we are talking about around EUR 110 million in sales. This is what we did in the bridge on slide number 65, when I presented the KPIs and the development of the sales or revenues figures of our group. In the divestment box, so to speak, you saw the EUR 150 million-EUR 160 million of VINCORION and these EUR 110 million divestments of the other businesses as an estimation, as a simulation, because we did not disclose the actual valuation of these businesses. This is a simulation and, yeah, this is the figure.
Thank you. There was another question, I think.
Yes, there is another question coming from Richard Schramm, HSBC regarding Light & Safety or future smart mobility solutions. He is asking if there were no interesting targets for an acquisition because except for ISA, we did not make any major acquisitions during the past years.
Well, again, very interesting question. Obviously, we cannot and will not disclose in more detail which processes we participated. I can say that we have been interested in acquisitions for Light & Safety in the past already. Not all acquisition processes, yeah, pan out successfully at the end. We participated, not always did we came to a successful signing of a contract. We know that there are interesting companies and targets out there. Some of them have been sold, some of them are still for sale, and we are continuing to fill our funnel in that segment.
We have another question coming from Stefan Maichl, LBBW. Could you provide some insights in the divestment process of VINCORION? Have there been strategic investors involved in the bidding process? Do you see any showstoppers ahead?
Look, I mean, VINCORION has been a longer process. During the process, unfortunately, I have to say, you know, please, all required humbleness here, we've talked to a lot of potential acquirers, strategics, financial sponsors. All sorts of ideas have been discussed. All the way to, you know, should we maybe even do a spin off or all sorts of other ideas. We're grateful that we're now found a partner with STAR Capital that is specialized on investing into mid-sized companies in this area, and a partner that we believe can drive the future, can provide an even better future for VINCORION. I again will say that it's been a hard process.
I mean, you know, when we announced the project to sell VINCORION in a structural process, clearly we did not even foresee the challenges that we face. VINCORION is an interesting business, it's not a distressed asset in any way, shape, or form. Frankly, at the beginning you will remember that at the end of 2019, I was saying in public that we're well on track. We were well on the way in that process beginning of 2020, a lot of things changed. To name just a few, there was all the debates about America First, and then later on the pandemic hit, and the aviation industry basically went into a severe crisis.
Let me just say that with the upcoming general elections in Germany, beginning of this year became even more challenging, the discussions that we had with partners. Germany will have a new government pretty soon. It's an interesting combination of political parties that will be responsible for example, issuing export licenses for defense products. The Ministry of Economics is responsible for that in Germany. That will be an interesting thing to observe. We're just glad that from now on, we can observe it. We don't have to deal with it anymore. That said, I wanted to explicitly again thank our partners at STAR Capital, but even more and much more the team at VINCORION. It's a great team. You guys have put together a great business, and they have been loyal throughout the whole process.
To be, as I said, put on a shopping window for such a long time is not an easy thing. It was not easy for customers, but in particular for the management and the team at VINCORION. Thank you very much to that team for being so dedicated and so loyal to the group. Any more questions?
We've got more questions coming from Malte Schaumann, Warburg Research. The first one refers to the guidance. Excluding the contribution from new expected acquisitions, which he estimates to be between EUR 260 million-EUR 270 million, the current businesses, excluding divestment, should apparently reach revenue of roughly EUR 930 million-EUR 940 million by 2025. This target implies an organic growth rate of roughly 5.5%-6% in comparison to an adjusted sales base of around EUR 750 million, excluding divestments, but including Berliner Glas and SwissOptic. Why is the organic growth of the group seen at only mid-single digit rates, given strong growth expected in many end markets, coupled with an order intake of already above EUR 1 billion in the old structure, which probably translate into an order level of roughly EUR 950...
EUR 850 million-EUR 900 million in 2021 for the new Jenoptik, excluding divestments, including Berliner Glas?
Oh my God, I must say that was a complex question and a complex statement. I'm not quite sure if I could follow all the calculations. I'm, you know, the physicist here, so I probably should refer to Hans-Dieter for the details. I think I do hope that the bridge that we provided in the presentation put more clarity on that. We believe that the underlying growth rates, if you take into account divestment and acquisitions, is attractive and reflects our technology gain here. There's always a debate. Can you drive further growth, faster growth, maybe at the expense of margins, or should we focus more on margins and, you know, maybe accept less growth?
We believe that with what we have put out as a guidance of around EUR 1.2 billion in sales and 20% in margins and profitability, and in our sales, by the way, we found a good balance to drive overall value for shareholders. But I think Hans-Dieter can explain a bit more what exactly that calculation has been. Hans-Dieter, do you wanna take that?
Yeah. Thank you, Stefan, and thank you Malte for your question. If you remember our slide, as Stefan already mentioned on page 65, our bridge, our revenue bridge. We have one main difference between your calculation and our calculation. We did not calculate EUR 120 billion. You did calculate EUR 120 billion in terms of sales for Berliner Glas Medical and SwissOptic in 2021 already. You may remember that we just today closed this acquisition, so we have only one month to go in 2021. It's a much, much smaller amount because it's only a 12th of the yearly figure. In our bridge, we have the main impact of this acquisition in the years between 2022 and 2025. This is the main difference in your calculation.
Because your assumption concerning VINCORION is close and other divestment is also close. This is the main difference. The starting point in Optics 2021 is not EUR 750 million. You see it in our figures, we started with around EUR 630 million. This is the main difference. This is why we said our organic CAGR will be 7%-8%, and our CAGR then after these different divestments will be 17%. This hopefully explains the difference.
Okay.
The next question from Malte Schaumann is referring to the revenue contribution of business area which will be phased out due to weak market positioning. The question is, over which time this is expected to happen, and are there cost burdens associated to this process?
Well, again, when it comes to, not sure what we are referring to. If we are referring to the branded businesses, we may or may not phase them out. May or may not keep them as is in the portfolio. When it comes to the business line that Ralf had, if that's what you're referring to, that Ralf had in his inner matrix, then the revenue there is not, it's not big, it's not a material contribution we're talking. Robin, I don't know what you're referring to. If you're referring to what the slide number had been, where Robin in his BCG matrix had, you know, a portfolio, dog, and exit business, and that's just one product line. It's not a major product line.
With respect to the other businesses that we will run them more independently, again, we're not here to give you a target to sell that. We're not here to accept any target to sell that. We may get a request, and if so, we have to speak. That's something that we have to do anyways. But other than that, their purpose in life is going to be to produce cash, and cash that we need to invest into growing. Maximizing value is their purpose in life.
The last question from Malte Schaumann is referring to the PPA effects regarding the latest acquisition of Berliner Glas and SwissOptic, whether we can already give a ballpark figure for 2021 or the next years.
I guess, Hans-Dieter, that's for you, but it's too early to tell, I would think, isn't it?
Yes, it is. I'm sorry. We cannot tell it today, but in the next weeks, we are able to do so. Yeah.
Any further here?
We have a question coming from Richard Schramm, HSBC. He's asking why we do give target for the ROCE without goodwill.
Well, we just thought that we're talking about the underlying business. Hans-Dieter , I don't know if you have any more insight to share with that group here. It's always a debate, with or without goodwill. We just thought that we wanted to do the underlying so that we don't have sort of too many special effects in it, with or without goodwill or result with or without other effects. I guess that's the main explanation, Hans-Dieter ?
Yeah. Maybe in addition, Stefan, it was also very difficult for me and my team to simulate, ready for the capital market days, the impacts, because we are not sure about the goodwill coming along with Berliner Glas and SwissOptic at the moment. It's a work in progress, still a work in process. We calculated, we simulated it based on our Trioptics experience, but it may be a little bit different, and the same with the potential acquisitions in the years to come. It's just a matter of the simulation. Because we have realized this uncertainty, we just thought it would be better because we are more able to simulate more precise the capital employed without goodwills. We thought this would be better for the two days event. Yeah.
Yeah. Thank you. In particular, I would say acquisitions will come, maybe. Don't know at all what the goodwill might be at the point in time. Okay. Thank you.
We have the next question coming from Stefan Maichl, LBBW. After the closing of the Berliner Glas, Swiss Optic acquisition, could you provide more insight into the relevant financials of the business, above all the EBITDA margin? Maybe as he just mentioned, but the EBITDA margin?
Unfortunately, we are not in a position to close that at this point in time. We have agreed with the seller that we can only disclose what we have disclosed in our press release thus far, and we have to see, you know, post-closing, what now that we actually can go into the business, what the financials bring. Up until now, it was just between signing and closing, so you will understand that we don't have that much details. We just closed it today, so we need a bit more time to dig into the details.
Second question of Stefan Maichl is referring also to the divestment of VINCORION and the possible acquisitions. Will there be essential impact of the acquisition? I think he is referring to Berliner Glas and SwissOptic and the divestment of VINCORION on the group tax rate in 2022, which was historically rather low.
I think that's for you.
Yeah, I thank you, Stefan and Mr. Maichl. Probably our tax rate is, I recently talked to the lady who was leading this team, this tax team. It's a matter of fact, we probably will have activated all tax assets at the year-end. We are thinking, we are assuming that we are coming more and more to a normal tax rate as a Germany-based group. Our tax rate will increase in the years to come. In this year, it will stay at, so to speak, at a relatively low level, but it will increase already from the years to come, 2022 and onwards, we will see more and more the development in the direction of, well, let's say 28%-30%, maybe already starting at 2020.
Yeah. This is the two days perspective, but more to come. Yeah.
We have some more questions coming from Peter Rothenaicher, Baader Bank. What will be your reporting structure in the future? Will you report life science and MedTech sales and results separately? Will you report non-core, which means automotive activities separately?
We are going to report on the divisional structure, i.e., Advanced Photonic Solutions, Smart Mobility Solutions, and the other non-Jenoptik branded products or the other companies that we mentioned, the more standalone businesses. We will report in that structure. We're not going to segment those divisions further in our reporting structure.
We've got another question coming from Malte Schaumann, Warburg Research. Referring to the VINCORION sale, transaction valuation should reach an enterprise value of EUR 130 million, including an equity portion of EUR 65 million. Could you provide further insight on the composition of these EUR 65 million liabilities part, for instance, pensions, financial debt, or what kind of other obligations?
Here as well, we have agreed with the purchaser, that we will not disclose any further details of the acquisition or the transaction at this point. The EUR 65 million that you have seen in the chart have been the net proceeds, not equity value. There is an additional part coming from the pension schemes. Those are net proceeds, not equity value. We're not in a position to disclose any further details at this moment.
We have a question coming from Lasse Stüben, Berenberg. First one is referring to HR. What level of headcount additions are you looking at to reach in the midterm guidance of EUR 1.2 billion? What is the strategy to find these employees, given the highly specialized nature of the business, and which areas will you be looking to add staff?
Maria, I guess that's something where you can help in particular, how we find people and where we find them. Overall, we do not have a particular sort of guidance or target on headcount. But maybe you can explain a bit more how we go about finding the right people and the right folks. Keep them, actually. Attract them. Not just attracting them, but retaining.
Actually, yeah, true. In terms of headcount planning, we go in line with this sales increase and also but deduct an efficiency increase. That actually is pretty much aligned. On how we find them and attract them, we have actually now specialized recruiting teams in all our big countries. We have in China, in Germany, and in the U.S., dedicated recruiting resources. We do a lot of active sourcing right now, actually. We're getting better there. We align them. We work together globally and exchange strategy. That's on how we find them and how we retain them, actually. We use a lot of what we have shown previously, and we hope, especially with the share-based compensation also, we'll be more attractive going forward.
Honestly, the culture change helps us the most in order to be an attractive employer. It's the money is important, but that's normally not why people stay with us.
Maria, thank you. We have to be a bit mindful of time here. We still have a lot of questions in the email inbox. We're trying to address most of them. But please understand that at some point, we would have to close the incoming receiving of new questions. We will carry on a bit more, but we'll have to be a bit mindful of the time. Let's see. There are way more questions left. Next question.
Next question coming from Lasse Stüben regarding the R&D investment. Is there a new target for R&D investments, given one of the old pillars was more innovation?
Yeah, good question. We have not communicated. We do not plan to communicate a specific R&D target. We will continue our quest for more innovation. I would say that I think about 10% overall sort of innovation money, 10% of sales is a good number for our business. I don't think that will change much. Without having discussed that in detail here, I would think that the 10% mark is around right for our business.
We have two questions coming from Craig Abbott, Kepler Cheuvreux. First one, referring to smart mobility. You mentioned much of your North American operations have been in partnerships with VERRA MOBILITY, which has been acquired by a competitor. How significantly is the North American share of your current Light & Safety operations? And how confident are you in being able to compensate for this potential loss of the business, assuming no potentially compensating acquisitions are made? I think we more or less answered that before.
Let me just verify then maybe. Not VERRA MOBILITY has acquired somebody who is a competitor of ours. The U.S. market, and we're talking U.S. market, just to be clear. U.S. market is important for us. It's not 50% of the business, but it's an important market. We have to act there. We have to do something about it. We intend to build up our own channels, and we again take it as an opportunity in a way. Now that we have to get our act together to actually build up our own channel, we may as well build up our recurring revenue stream there and maybe even drive up margins.
Okay, we had a second question from Craig Abbott regarding businesses earmarked for divestment. How optimistic are you that there could be potential candidates to be acquired? The Hommel activity, given that the structural decline at the core end market is the same for all players.
Yeah, I don't think we have said that we've earmarked those businesses for sale, but we have said that if somebody have an attractive offer, we talk. If not, then we just continue the business and maximize the value. Therefore, we're not too concerned about that question because it's not our first strategic intent to sell them. Those are good businesses. There are good teams in there, good people with an attractive position. In particular, when it comes to Hommel and our metrology business for the automotive industry, we do believe that there is a chance that they will manage to be more and more geared towards electric mobility. And we will support that. We will maximize the value of that business, and the rest we have to see.
I think we have the last question for today coming from Giorgi Tevzadze from EOS Partners. What would be starting adjusted EBITDA margin in 2021 for the core business, excluding VINCORION and potential divestments? I'm getting at roughly 19%, so does it mean just 1% improvement until 2025?
Well, we're not disclosing those particular figures. In particular, we're not disclosing and guiding for the VINCORION EBITDA numbers at the moment. Obviously, that's something that you can see in our quarterly reports. The group's guidance is that, including one-time effects, we would guide for between 19% and 19.5% EBITDA. We also said all the time there are significant one-time impacts there. The underlying profitability, stripping out all those one-timers, is way above or is above 16%. Now the question is way above or above it. It's above 16%, that's for sure. 16.0%, that's for sure. On the slides, you have seen it's somewhere between 16%- 17%.
I guess our slides are fairly correct, and we made the effort of making sure that they're fairly correct. Everything else, I would like to ask you to remain a bit more patient. We have a couple of weeks left, and one thing's for sure, we're gonna work hard to achieve our guidance for the group. Things are getting tougher by the hour when it comes to, you know, supply chain disruptions. Thank God we dialed into our models certain contingency for that. We do hope that what we call the fourth wave here in Germany now is going to ease off at some point.
Frankly, we have another problem, not just supply chain, but by now we have actually to fight with having enough people to put in front of machines and stuff because the sickness rate is going up and up here, in particular in the east of Germany. We stand by our guidance. We have, thank God, dialed enough contingency in it. We actually do need it. Everything else we'll report when we come to reporting our financials. We probably going to do an interim somewhere sort of early part of Q1, preliminary figures, and at that moment, I'll certainly be able to tell you more about the individual contributions. Okay. Well, I think we're coming to the end of it. Again, thank you very much for participating.
I can't stress enough how much we value your participation and your, you know, the fact that you hop on this live stream online. We would have loved to see you all in the flesh in Hamburg to show off our products and to show a bit more about the Trioptics, but given the recent developments, it became much clearer over the weekend that travel is more and more of a problem. We hope that this whole discussion about Omicron and whatever the next variant might be, it's not going to change the world yet another time. If so, well, we will manage with that. We'll fight back, and we will win this fight against COVID-19, I'm pretty sure.
We here at Jenoptik do all we can, and I think we have demonstrated over the last 18 months that we are a resilient bunch. We have demonstrated resilience in our businesses. We have demonstrated the ability to adapt. I think we have demonstrated the ability to act and interact and to execute. I think that's the basis for future success. We do hope that you liked the videos that we put together. We think that it gives you a glimpse of what we're able to do. We are pretty certain that our next volume for strategic agenda, the Agenda 2025, to set the stage to 2025, which as I said, we entitled More Value. We'll provide more value to our shareholders, to all stakeholders involved. With that, thank you very much for tuning in today.
With that, we