Nemetschek SE (ETR:NEM)

Investor Update

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Oct 5, 2021

Hello, everybody, and a warm welcome from the Nemetchek Investor Relations team. This is our first special day for the media and entertainment segment that is represented by our Maxon brand. Thank you for your interest, and thank you for joining us. Within the next two hours, you will get a deep insight into our Maxon business, and we would like to educate a bit where the software is used. At the end, we will have enough time for a Q and A session. Our special day is being recorded. A replay of the session will be available at our website after the event. During presentations, it would be great if you put yourself on mute to avoid background noise. But now let's start with the first presentation. We will kick it off with our spokesman, Axel Kaufmann. So go ahead, Axel. Superb. Thank you very much, Stephie. And while I pull up the presentation, which should be this one, and someone is nodding hopefully to be able to see the presentation, Should now be on presentation mode. Let me also say a warm welcome, from my side, and thanks, first of all for you having registered, for this event. You, Stefi, and your team having organized this. And a special thanks to Dave McGevern, our CEO of Maxon and the Media and Entertainment division, as well as Simon Walker, our Global Head of training and learning at Maxon, who will lead you through, a middle part of the presentation, giving you some real examples. We will do the meeting in English, and we want to say upfront that this meeting was worn by many of you, who have approached us and who have told us that they would be interested in more details and a look behind the scene. So here's an agenda, for today that we roughly, want to, try to, walk you through. I'll kick it off. Just to show you the impressive transformation of what the segment has been going through really over the last years. Dave will give you an overview of what Maxon is about and the media and entertainment industry and the landscape that he's competing very successfully within. Now when we talk about rendering, sculpting, animation, or modeling, it might be somewhat abstract for some of you. And therefore, again, we thought it'd be a good idea to have a short product presentation so that you have a better understanding of what are the typical customers that use the solutions and what are the use cases on an everyday basis. And therefore, Simon has prepared, as I just mentioned, something that I really think is thrilling and keep all of us alive. The goal of today's session overall would be to walk away with a better understanding and the details about what the segment, for us it's a segment of the division, went through in terms of a fundamental transformation over the last two to three years. We'll talk about that transformation in more detail, why we're so convinced that there's an even greater future ahead of us, and what are the typical players in the M and E space, and why we think we're better and stronger positioned here today than ever before. Media and entertainment, however, might not have received the amount of attention and appreciation it deserves in the way that also how we communicated about it and to capital markets and investors. By the way, we have not invited, the many requests from investors or also business journalists or industry journalists that wanted to participate in such a similar session because we really wanted to have this tailored to you, our analysts, that know most of the Nemechek story for so many years so well. So with this, let me try to kick this off, once again. And by looking at this slide on the left side, again, we want to start framing the media and entertainment a little bit in the context of what Nemecak Group is about. You all know the ACO, as we call it, business very well, which represents the core of our Nemecak Group's business. There, we are a true global leader in terms of probably the global leading software vendor for the ACO industry with the longest history in this area. With our three segments, design, build, manage, we have a full fledged product offering for all professionals along the entire life cycle of buildings and infrastructure projects. We want to stay and this is very important, very dedicated as we are to this industry, which offers an attractive long term growth potential based on several structural growth drivers, which we have discussed many times. I believe that part of our equity story is well understood when it comes to the AECO, also by the capital markets. And that is why we would like to take the opportunity to talk a little bit more in-depth about the fourth segment that's a little bit outside. It started with AECO, but nowadays it's more and more becoming outside the AECO industry, media and entertainment, to form almost a separate business. Some of you might have seen the article the other day in a German business paper. And despite its ties into the AECO space, we think it might have seemed that at least from the outside that this division was more like a fifth wheel. I've been using this this term, on the wagon for for many years, and it's no longer. And you will you will see why and what we have in mind. So that's now on the right side. And the next minutes, I'll try to, walk you through what we think about, this business. Media and entertainment, that's essentially the Maxon brand. It bundles all of our competencies in this field. If we take a closer look at Maxon, it's a leading developer of professional three d modeling, painting, animation, visualization, rendering, all for the creative industry. Artists worldwide use the software to create three d motion graphics, architectural or product visualization graphics from computer games, illustrations, visualization effects, films, commercials, and much more. Maxon's long standing clients include the who is who of the global media and entertainment industry, including companies such as network and tele stations, Sony, the Walt Disney Company, BMW, Apple, just to name a few. I personally have the pleasure to work with Dave and his team as a coach in this segment. And in Dave, we have a true industry expert with more than two decades of experience in this space. He joined us from Adobe a few years ago and is therefore also one of the veterans and true subscription natives. On the one hand, this was, I would say, one of the main reasons why Maxim was one of the first major brands to migrate from a perpetual business model to a subscription model. On the other hand, his great wealth of experience and his practical insights regarding subscription models proved to be a valuable asset for many of Maxon's sister brands within the Nemechek Group. If we talk about numbers, as I know many of you are interested in, in numbers, you see that also that the 10% share of wallet that the division currently represents in terms of the Nemachek Group don't forget it used to be only 5% a few years back. So within three years, this has doubled. And more importantly, the share of the subscription business overall within the Nemechek Group, that accounts to up one third. So this is going to be already my last slide, but I wanted to walk you through what I call the phases of this transformation. When Nemichek, and this is maybe phase zerophase one, twenty years ago acquired a stake in Maxon, a German close to Frankfurt based company, The rationale was that this experience in the field of visualisation was also an important part for designers and architects in our what today we call the design segment. Initial years of strong growth, Maxon entered a consolidation phase where the company grew at a CAGR of around 10%. Reasons for this solid growth were Maxon's subscale size as well as a lack of some features such as the state of the art rendering solution that was back then missing in Maxon's product offering. But many things have changed since ever then. So when we look at 2018, kind of 'nineteen, those were the years where I would say this was a turning point. And Nemachek as a group had to make an important strategic decision regarding the future of this segment. And with the benefit of hindsight, I think it was the right strategic move and the entrepreneurial brave decision that given the attractive growth profile of this industry, we decided to double down on and go all in the business, and we started a very ambitious transformation plan. The very first steps were to buy out the former founders of Maxon as well as appointing Dave as become the new CEO of the company. Then the last phase, and we can talk about the future certainly during this call as well, but until today, I'd like to summarize this Phase 19 to 21 as an extremely well executed and thanks to the entire team and successful transformation of the entire company. We would have acquired Red Giant and Redshift, as you know, Giant being the innovative software vendor for motion design and visual effects and Redshift being more the market leader in, what I just said, the rendering solution, state of the art leading edge, and integrated both of them into Maxon. So basically, made it one company become out of the formerly three separate within the Group. I'm claiming this was the first fully fledged integration within the Nemecich Group's history as strict and as consequent it was done under Dave's leadership. So we started a very successful move from the traditional license and maintenance model to the subscription, as I just said, which also provides valuable practical insights and tips for other brands and business units within Nemichek. In sum, I would say these major steps and of course countless other smaller measures have led to a reacceleration of the organic growth and to more than a doubling of Maxon's revenue since 2018. And with that, really, once again repeating everyone that we are, as an MHW Group, extremely committed and enthusiastic about this business, handing it over to, the person who is responsible on a day to day operational basis for that, Dave McGevern. And I want to stop my presentation, and Dave, can pull up his one. Thank you very much. Hello, everybody. Thanks, Axel. My name is Dave McGabran, and I'm gonna get my screen started here. Hopefully, this goes smoothly. Hopefully, that everybody can see that. Good. So I guess my name is Dave McGavern. I'm joined today by Enrique Glass, our CFO, and I also have the world famous Simon Walker who's our head of education and training, and he's gonna be giving some great product demos later so you can get a flavor for what we actually do because it is different, as Axle said, than some of the other products that Nimachek brings out in the different segments. What I'd like to start with is, you know, so Maxon was founded a total of about 35 ago before Nimachek got involved. And the the the brand name itself, Maxon, wasn't very well known. Cinema four d, the product, was extremely popular for many, many years. It was used throughout the entire industry. But if you ask somebody what software they use, they use Cinema four d. They didn't use Maxon or they didn't use Maxon Cinema four d. So what we wanted to do earlier this year, especially bringing all these companies together, we wanted to relaunch our brand, Maxon. So I'm gonna kick it off with a video. We'd like to show a lot of videos, so you'll see a lot of videos today. So we're gonna start that off with our new brand video. So that's something we're actually really passionate about. What makes Cinema four d and Maxon so so special is that the actually, the original author of Cinema four d still works for Maxon. He's our CTO. And a whole bunch of other people who've been around from the beginning are still with the company. People are super passionate about what they do, and they stay with us for a long time. And as we expanded and brought in other people into the group, we looked for companies that shared that philosophy. So if you look at Redshift, when they came into the company, they're still having the original people who created Redshift. Red Giant has similar, many other people who started the company as well as Forger. And so this brand rolled out, what we did is showing you the coming together of all those companies, two of which, of course, share the the the name red. So And therefore, we obviously chose that color, but that brand video shows that we're coming together this year as one full company, completely together and fully integrated. And so if look at the timeline, Axel mentioned that, Nimachek made the reinvestment in 2018. Shortly thereafter, we brought Redshift into the company in '2 in April 2019. It was a spectacular team to come in and join us. We're really happy to have them with us. They make the best the world's best, GPU render, fastest, highest quality. We'll talk about what that means in a little bit. But then very quickly thereafter, in January 2020, we merged with Red Giant, which really expands our growth outside of the pure three d space where it just shift and some of 40 plate. But we're continuing to be busy, and we have a lot of support from Nimachek. So earlier this year, we brought in a a company called Forger in February. And just in July, we had a small acquisition in a in a company called Bang that brings some great, two and a half deep graphics to the portfolio. So what I'd like to start doing, normally, we'd be in person. Normally, we'd be in a room where I can lower the lights and turn up the the speakers. But what I wanna do is show you a video of what our artists create and hope that you enjoy that. Please turn up your music if you have it. Hopefully, the video will come across cleanly. So hopefully that came across okay, and you enjoyed that. That's a sample of all of the artwork that's where our products are used. And the joy I have at working at Maxim and where I've had to my career is to work with the amazing creative people who make those those that art possible. And when we grew Maxon, we wanted to grow beyond just cinema four d. We wanted to grow into the entire post production pipeline, and we wanted our artists to be able to create in all dimensions. And that's not how we look at the world. And so when we put all of our tools together, you have a complete group of tools that allow you to do more than just three d. You can go through editorial, composition, three d rendering, sculpting, so we give the our customers an entire package to work with. And that's what's really throwing our growth, you know, through the roof is that we're able to put a whole bunch of stuff together, make it more valuable than just any one product, and then make all those products work very closely together. And so what do we actually sell as Maxon? We've been really focused this last year on introducing our new subscription line, which is MaxonOne. And MaxonOne is what you what you subscribe to, and it gets you everything that Maxon makes. It gives you all the stuff that you need to make those videos that we saw at the beginning there. I think the fun thing is I I'm a 100% confident that everybody in this room today who might not know exactly what Maxon is or Maxon does will recognize something that was played in that video because Maxon is used all over the place. If you turn on your TV, if you watch a movie, if you watch sports, MaxonOne was used to create something in what you watched. It's really that pervasive. It's everywhere. So Maxon one includes all of the core products that we've talked about, which is Cinema four d, our three d toolbox, Redshift, our GPU accelerated world class highest quality renderer in the industry, Red Giant, our toolset that allows you to work within other software in the industry to bring two and a half d further into the three d pipelines, Universe, which is our product for making better editorial and better motion graphics. And just in October, in another week, we're gonna be adding Forger to MaxonOne, and everybody who subscribes to MaxonOne will also get Forger, which is an industry leading sculpting application that's available in the palm of your hand using an iPad. But that's not everything that comes with MaxonOne. With MaxonOne, we also deliver continuous value. The goal of any subscription offering is not just give someone a piece of software and let them use it, but it's to give them a piece of software and a whole bunch of tools and update it constantly so that every day when you come to your subscription, you're getting additional value. So we offer capsules, which is our collection of amazing assets that we'll talk about in a little bit. We offer Cineware, which is where Simon's expertise comes in. Cineware is our online training and learning portal where we have the best examples of tutorials and ways you can do things you've never understood before, how to use our products. That's all in Cineversity. Cineware is our integration into the rest of the industry. We'll go through the details of that, but that's where our partnerships come in where we work with Adobe and Unity and Epic. And we also are now introducing some additional products on the on the iPhone called Maxon Moves. And Moves is the tool that integrates with augmented reality so that you can capture your face or you can capture an object. We'll show you some examples of that as well as we go forward. So MaxonOne is all of this together. And when you subscribe to MaxonOne, you get all of this plus all of that learning and integration with other parts of the industry. So if we look at each of those products, Cinema four d is our Swiss army knife for a three d application. It it was the birthplace of Maxim, and the the authors are still here. And the idea from the beginning was to take something very, very complicated, which is three d, and motion graphics and and make that very easy to use. And that's why it's become such a staple in the industry is because you can do very, very amazing motion graphics that are used in broadcast and motion pictures and games and scientific, all those places. But it's actually something you can still use and and actually learn quite easily. It's very approachable. Redshift is a renderer, and that in itself is a bit of a complexity. But when you look at some of these examples, what a renderer does is take you know, if you were to draw a a cube on a piece of paper with your pencil, you would see a cube, and it would look kinda three d ish. That's what you would do in Cinema four d. When you want it to look real or inspirational, if you wanna see the whiskey in that bottle or you want that axe deodorant to look like an actual bottle of that volcano to actually look like it's on fire, you need a renderer, and that's what Redshift is. And it makes it photorealistic. It makes it super high quality. It makes it engaging. And traditionally, any one of these things might have taken, you know, thirty minutes, an hour, two hours for a single frame. Redshift changed the industry by bringing that onto the GPU and all of a sudden making this really fast and easy to use and make it that you can be more creative by doing things much faster than ever before. In fact, we just announced Redshift RT, which is an even faster version of Redshift that just came went into beta testing in September. Red Giant is a collection of tools that you can use in other post production speeds. So you might use these in After Effects or Avid or Final Cut or other tools that you would have heard in inside of, inside of conversations around the media entertainment industry. So you it's a group of plug ins. There's a 100 and something plug ins. Simon will probably show you every single one in-depth, and they're used to do things further than you can do in those traditional tools. So we call them two and a half d plug ins normally. They're taking three d concepts and allowing you to do them in a traditional two d workflow. And they're made up of trap code, which is the beautiful particles and special effects you're seeing on the screen right now. We also have the VFX suite plugins, which allow you to do special effects for film and TV and makes it easier to do extraordinarily com complex visual effects and makes it more engaging. These are all examples made with the VFX suite. That includes supercomp and optical glow, and we just released bang into this suite. Magic Bullet Suite, I think everybody's probably heard when they go to your local TV store that everybody should be buying HDR televisions as color becomes more engaging on your phones and on your iPads and on the television that you watch every day in your in your living room, you need tools to make that color look spectacular. We all noticed that when we shoot something with our old VHS cameras that were that old, that it didn't look as as these examples do here, and that's because we're not we're not colorists. But MagicBullet makes it so that everybody who can edit a video can become a colorist, and that's what you're seeing there. Universe is a is probably one of our most popular products, and that is a set of plug ins in in almost the reverse case. Often you use it to take some really beautiful footage and make it look older because that's the feel you want. You want it to look like a VHS tape, or you want it to have some really fancy special effects, or you want it to be torn, or all the different things you're seeing here. And Universe works inside what's called the editorial suite. So where a video editor would sit and cut movies together is where you traditionally use Universe. And finally, Forger, the most recent application we've added. Forger is a new version of a sculpting application, and sculpting is where you would traditionally, you know, sit on a computer. You know, obviously, it comes from the the actual art of sculpting. But in this case, you'd sit on a computer and design new characters and new and new creations in the software Cinema four d has sculpting. But as Apple has really changed the world with the iPad, there's four times as many iPads in the market as there are Macintoshes, and sculpting really lends at something, you know, the work where you actually wanna touch it. So when you pick up an iPad and your pencil and Forger, you can create this artwork using an iPad and then integrate it into the post production workflows with Cinema four d further. So Forger really gives us the access to an even greater market and a very interactive market that people will be holding and touching their sculptures. So who who are the people using these products? Who are our customers? That's obviously the the biggest question and the most important. And so we're we made a very concerted decision here, and it's not like other people in our industry. We we focus very specifically on the medium attainment segment, and we break that into three sub segments, and that is the three d BCCs. Those are used for creating content for gaming, for broadcast. That's your TV stuff. That's your Sky Sports, visual effects, visualization. This is the the top end of our pyramid. It's where we started. It's where we probably still have the most of our technology, and it's probably the smallest segment at this point in time. It's going to get bigger every year. But of the media entertainment segment, three d is probably the smallest, but that's changing rapidly as everybody's expecting three d to be a core competence. As we brought in Red Giant and other products into Maxon, we've been able to move down the pyramid. And so we include compositing to that, and that's when you're taking multiple pictures or multiple videos and make putting them together to make one composited output. So as an example, I think if you looked at the introductions today, would have saw Steffy and Axel had a virtual background, whereas Simon and myself don't. And part of the reason we don't is because in compositing, to do that, to make that virtual background work, you use something called keying. That would be a typical compositing workflow, and the keying in Zoom just isn't up to our standard yet. So we we feel inadequate if we use the Zoom keying. So compositing is when you're putting people into other scenes or mixing things together, and that's where Red Giant really plays a strong role. And then the biggest segment in media entertainment is editorial, and that takes the output from the compositing and the three d the three d software and puts it into a timeline and tells a story from it. And that's where universe plays. So we play in each of these segments, and we're expanding out in each of these segments. But with that in mind, we also pick a customer segment that's very important to us. They're the highest in professionals. They're the ones who make the most spectacular explosion in the most, you know, specialty Marvel movie or whatever. And we do have people who work there, and it's amazing that we love them. And and we actually you know, Cinema four d actually got a technical Oscar for some of the work it did on the Marvel movies. But it's not our key target because there's actually not that many people in the world that do that. There are many, and a lot of them do use Symaportie, but we don't put in laser focus there. At the same point, you know, when you download, Instagram or Twitter or Twitch or TikTok, any of these, they have millions and billions in users, and they're doing basic media entertainment workflow. They're putting special effects on. They're putting motion graphics on there, but they're not paying anything. The the the the market down there is all about advertisement. And so you just do something quick and easy, and then it's fun and enjoyable, but it's not someone who's sitting down to to work with creative intent who wants that to be their professions. So we really focus on the broader professional, the people who sit in TV stations, magazines, ad agencies, post production houses who want to create the highest quality, most amazing content, generally in the motion motion graphic space, who are willing to pay for the quality of what they're gonna create, and we call those the broader professionals. And that's really where we focus. So we're on the broader professional, and we're focused on three d, compositing, and editorial. So what are the market segments of players opposed to the product segments? We actually are used all over the place. The it's talks to the growth of three d and and two and a half feet in the industry is that it's used throughout huge amounts of the market. But let's go through a few of the ones that we're gonna see and explain them a little bit. So motion graphics, that is our, you know, biggest and and most popular, but our most successful. And motion graphics is is designed that has movie movement. It's it's a motion design. So you see here an advertisement for a shoe, Nike shoe. That would be used Symbol 40 would be used would be used to make this. So would Red Giant products be able to make this? So anytime you're seeing something on TV or during sports and it looks something like this, you're likely looking at something from cinema 40. It's our biggest segment, and that's motion graphics. Visual effects is what you see in movies. So if you're watching the great new Netflix series or you're going to the movies, you saw the new James Bond movie recently, not sure, anything that allows the user to sort of, into the story and and and leave reality as we know it and experience something new and exciting, that's where our products are used. They're used to create all the things you're seeing on the screen right here. These these new, you know, heads up displays that are futuristic and and difference, whether it's a building collapsing or or muzzle flashes on guns, spacecraft flying around. That's a visual effects segment, and we're used very heavily there, especially with Cinema four d and the Red Giant plug ins. The games and interactive things. So I don't know if we go home and play games or if our kids are playing games. You also wanna suspend reality, and you want to experience something new and exciting. And so our products are used there for animating the characters or for, you know, the intros and the the motion graphics that you're seeing on this on the screen. So we're very much used to create, the graphics you see in games. And throughout this time, I'm gonna talk about creation because we focus on creation, not the games themselves or not playing back three d content. We focus on creation. Every all of our tools allow you to create better content. Art and design, it's been an interesting year for this segment. The this segment is changing rapidly around us if people have seen any news, but we've always been used in the design space and advertisements and magazines for shoe you know, for car design or car magazine advertisements. They would be using our products to make them more realistic. But this year, there's been a major change if you've heard about NFTs, which are non fungible tokens. This is a friend of Maxon's people. He's been a long, long, long time user of ours, and he comes and speaks for us at shows and is comes and helps us make our products better. He hangs out with us. And this year, he sold, his everyday's art project, which is something every single day for the last, I don't know, many, many, many years. He's created a beautiful design mostly in Sima Cordy, and he put them all together and made a non fungible token, which is in this cyber currency, Bitcoin, blockchain space, if you wanna go read about that. And he sold his artwork for $69,000,000, which is, I think, the largest sale of an artwork for a living artist, and that landed him on the cover of Time Magazine, for changing the entire future of business, showcasing cinema four d. So he's an artist who uses our tools to create his artwork, and this is something that's really changing right now in the industry, and we're seeing more of this. Unfortunately, in the last two years, this is also an area where we've seen more growth than we probably want in scientific and medical imagery. It is actually quite often used in similar to me or atoms or, you know, molecules or whatever. And so it's used quite heavily in in that segment as well, and it's a very interesting place to go. Hopefully hopefully, everybody still hears me. I'm seeing a little bit of a warning about my Internet connection. Hopefully, it's gonna hold up. Live events. I guess on the counter side, this is maybe something we haven't been as involved in in the last two years. But when you go to concerts and theater and going to, you know, outdoor shows and things like that, all of the fancy designs that you're seeing needs to be made. And we actually play a pretty big role there, and we've been involved in a lot of great concerts and productions, and there's some great city art events where they use our products as well. So there's quite a lot of use across the industry in various different ways. And, of course, this is the reason that, Nimachek originally invested in Maxon, and that is in engineering and architectural visualization. So Nimachek knew that the world was changing and that it wasn't just enough to see a hand drawn architectural drawing or a two d version of a a new house that you're gonna build. People wanna see them realistically. And so Cinema four d was originally brought in to Nimachek to make those visualizations more engaging and more realistic. And so we obviously have actually done quite well in this industry, and we're used all over the place. And when we're seeing some of the fun stuff we'll talk about in a few minutes, you know, Vectorworks recently included Redshift as the renderer of choice to make Vectorworks renderings look even higher quality and faster, and Graphisoft will be releasing their version with Redshift in in the coming weeks. And then, of course, and this is probably the one that more people talk about, but not not really many people know what's going to happen, and that is the realities. That's augmented reality, mixed reality, virtual reality. These are all fancy terms. And the idea is how do we take three d and virtual worlds and mix them together or or engage in those in in a more interactive way. And it's very, very, very early days for any of this stuff, But there is a lot a lot of people talking about the industry, and we're sitting right where we want to be in this space. So in the last two keynotes, Apple has been talking a lot about how three d is going to change the world. And to do so, they've been focusing on Maxon in our workflows. So here you're seeing some technology that Apple developed that we've included in Cinema four d that allows you to take photos of objects and from multiple sides. You take thirty, sixty, 80 photos, and then you can bring that into Cinema four d, and it turns it into an object that you can work with. And that reduces the complexity of one of the hardest things, which is how do I go from nothing to a three d model. You can now work with your iPhone and Cinema four d, take a bunch of pictures, and you can get started right away. And I think Simon will show a little bit of that as well. So what makes Maxon special? What, you know, separates us from the from the rest of the industry? And I think the first and most important, and I talked about it a little bit today, and that is the Maxon meetings. The people who work here. We have artists working at Maxon who use our products every day to create the content. We have the original ideas behind the products still working here, still wanting to make those products amazing. And every single new person that comes into Maxon has the desire to change the world through creative expression. So they want to work on the products that change the way we look at movies and theater and TV and all these artworks. So they're all very, very passionate, and they get to design the products the way they want to to create this new world of content that we're seeing when we watch TV every day. So we really have a company that's driven by artists and the engineers making the product that you're seeing today. And then we're really fully focused on this segment, and that's kind of unique in our industry. There's a lot of companies that do things, but they usually have a whole bunch of other businesses on the side, and Maxon is fully focused on these on these products. And with that, those Maxonians have created extraordinarily powerful tools. You can see that you have the highest quality content that you watch in movies are created on a laptop or on a desktop, you know, just using MaxonOne. And you can get started really fast, and you can change the way you've been able to create things and go from a two d workflow into a three d workflow, quite easily. And that's always been a staple. And when we look at bringing companies into the mix, we wanna make sure that the products that we're creating are easy to use. There is a lot of tools in the industry that are very, very complicated to use. You can do the most powerful things, but our products can do that, and they're easy to use. And if they're joyful to use, they bring a smile to your face, and they engage you to be more creative with examples and sample assets and and presets that you can use to get started. I'm just planning to show you how easy it is to use our tools in a little bit here. And so like I said, our tools now span the entire creative pipeline, and this is the way we look at this. So traditionally, Cinema four d only existed in the three d space, but through building out new tools within the MaxonOne product line, acquiring new tools, combining the tools together, we now can stow the entire post for us the whole post production process from pre visualization to three d to composition all the way on to editorial and so that our products are used throughout the entire creative pipeline. And if you use our products together, they're going to make things easier for you. So you can take a cinema four d object and put it into a red giant scene inside of After Effects, or you can take the sculpture that you did in Forger and bring it directly into cinema four d, and all of that is rendered with Redshift. And so we brought in all these tools that have the same philosophy for how we create them and and have our artists work on them, but we also made them work together. And we brought, you know, the most passionate people together to give us an entire tool set for the entire post production industry. So finally, the final thing I wanna talk to is what are we focused on in the next year? As you've seen that we've gone through some extraordinary growth, and not enough is keeping us busy. We have a lot of new customers coming in every day, and we wanna make sure they're happy and and passionate and making the creations that they want. But we also have a very strong focus on what we're going. So I'm gonna talk about three specific things that we're gonna work on in the next years that'll keep us very busy. The first is a term we put around our asset strategy, and that is a term we use called capsules. And so what I mentioned is when when you wanna sit down in front of a Cinema four d and you wanna make a car or you wanna make a plant or I had to sit down and make this stamp. Let's say we wanted to do that in Cinema four d. You would start with nothing on your screen, and and that's really a frustrating problem. We'd call it the blank screen problem. How do you go from nothing to a to a three d object? And this is the same if you're using, an editorial software to make a movie or if you're trying to put them together composition or you want to do the color grade on that movie you just shot. You wanna get started with creative inspiration. And so we bring gigs and gigs and gigs of cool things in our MaxonOne subscription called capsules that allow you to get started faster. So we have, you know, a whole bunch of three d models. There are trees and there are cars and there are people walking around and motion capture that we actually went out to a theater and captured. They're the muzzle flares that you see on a gunshot. They're preset that give you choices in how your color should look. They're materials that you're gonna put on objects when you're using Redshift. Some of them are really smart objects that you can see here where you say, I just wanna be able to make a city, and I want the city to sort of feel similar, but I don't wanna design each building myself. So we can give you a smart capsule that allows you just to say, I want four stories, and I want it to be three stories deep, and you'd have a slider. And then this really complex thing becomes easy where you just say, I want it to be this high and this wide, and all of a sudden, I can create a whole city very quickly. So they start from very basic models like a tree. They go on to very complicated things here like building and landscapes that you can create automatically. But when we work with Apple together as one of our partners, now you can actually create your own assets by taking photos of objects and bringing them directly into our capsule browser and start using them wherever you want. So we're gonna be investing heavily in this. So every month right now, if you're a Maxim one subscriber, we're giving you additional models and and samples and HDRIs and materials and all these really complicated things that give you more creative tools. And so every month, when you log in to your Maxim one account, there's more fun stuff to play with to inspire you to get your creative project started. And a lot of other companies are charging for that. We decided that it's just a great idea to give those to our customers. So we have a team of people working on these, and every month you get additional stuff. And so we're gonna continue to make it easy and fun to create new content with our capsules. The second main focus is Redshift everywhere. Redshift, when we acquired it, was the best, highest quality, fastest renderer if you were using a Windows machine with a modern NVIDIA GPU and CUDA exactly the way we want it to be used and and not much variation. And so we've been working really closely with the Redshift team to make it so that no matter where and how you wanna create three d content, you'll be able to use Redshift. So in that time period, Redshift is now available on the Mac. And soon, we're bringing out on AMD computers on Windows, and you'll be able to run on any computer that you want to. We also bring Redshift not just into Cinema four d, but Redshift is used inside of Maya, three d s Max, Houdini, even Blender because we believe it's the best and highest quality render out there. So if you're going to make realistic renderings, we want you to use Redshift, and we're going to bring it to you no matter where you're creating content. So Vectorworks is part of this story. And last month, they included Redshift in Vectorworks. When you're making your architectural renderings in Vectorworks, you're now gonna be using Redshift. And Redshift will also be included in Graphisoft in November. Two of our sister firms who want to have the highest quality architectural rendering, they'll be using Redshift as well. So we're gonna be talking more about this in the next year. There's more stuff coming, but we'll be focused on making sure that anybody who makes photorealistic or realistic renderings will be using Redshift no matter where they do that work. And finally, and most importantly, no product in our work in the M and E space ever is used by itself. No matter what you look in creative, you know, output, you're gonna see multiple tools. You might see Photoshop and Illustrator and Final Cut and Avid all from different companies. And the the challenge for all of us is to make the tools that our customers use work in the world around us. And with that, we talk about a technology called Cineware. And Cineware is already released, and it's already been in After Effects for years. I mentioned it being in all plan, Vectorworks, and ARCHICAD. And with Vectorworks and ARCHICAD, they also use Cineware to include redshift. But we've recently partnered with Unreal, with Epic, and also with Unity to bring three d models from Cinema four d directly into Unreal as an example or even Magic Bullet. Look. The color grading that I talked about, we can be using that inside of Unreal as well. So it's just another place where our tools can be used. So if you created that city scene scene that I've said as a as a capsule, you could bring that into Unreal. And while you're working on your game, you can be changing those settings directly in Unreal without having to go back to Cinema four d, and you can take the content that you create in the Maxon tools and use that in all other stages of the pipeline where you might be using a different tool. So Cineware is extremely important. We partner with all sorts of great companies on it. There's more people using Cineware than are listed here, and it's how we take our work and bring it to the rest of the industry. So with that, I've talked a lot, and it's probably relatively abstract. But Simon's gonna take a few minutes here and actually show you how some of these tools are used and how easy it is to create amazing content. And then we'll come back, and we can do a little bit of q and a. So with that, I'd like to introduce Simon Walker, who's a dear friend. I've I've had the pleasure of knowing him for a very long time, and he's quite a name in the industry for his ability to to train the complex easily. So he's gonna try that today. Thank you, Dave. Alright. You need that's it. I should share my screen. Hello, everyone. My name's as Dave says, I'm Simon Walker. I'm head of training and learning at Maxon. But, there's a couple of things that Dave's been mentioning that I think are key. One of which is, we'll get onto the product stuff very, very shortly, but the Maxonian thing because it's not just me. It's the whole team that we train the customers, and we, help people learn stuff more quickly. So I just wanted to give credit. Some of the things that I've been trying today have been put together by me, some by the team, but there's really that that group of people that make this happen for us. And so about the product itself, they've said I wrote it down, in fact, to engage you to be more creative and make it easy and fun, and that's exactly what I'm going to show you. I'm gonna pick out some of the the key things out of more than a 130 products that make it easy to be creative and engaging as fun. So let's just have a look at this. I'm in Cinema four d now. I'll start with a few Cinema four d examples and then key key up some things from Redshift and also from Red Giant as well. But here we go. Here's a a scene, a very simple scene, and this is one of the things that they've also mentioned. How do you create something when you've just gotta build it up yourself? And the key thing is that, inside the asset browser, we have many, many gigabytes and thousands and thousands of objects that you can search through. So let's say I want to add some chairs into this scene. You can just site type chair, and there's you've got a whole range of them. But the nice thing is there's technology inside cinema that makes this easy because we can use a placement tool. That means that you can just drag a chair into a scene, and then it's automatically placed in that location. So I can I can in fact, I can just, like, command drag and make multiple ones of them? I just make multiple chairs here. Let's just turn onto the rotational area here. There we go. So we're beginning to populate the scene. But the other interesting thing is that you can then duplicate those things even more easily. So let's just jump over into asset browser. I've got some favorites here, and I just wanna drag a a cup and saucer onto the table. That's all going back into my placement tool. Here we are. So drag that onto the table and zoom in slightly. Now the thing about this is that these these placement tools allow you to place anywhere. I can place it on the floor. I can place it on the wall, anywhere in the scene at all. I could even place it on the the lights that are above. So you don't have to worry about things intersecting. So when when you're an artist and you're doing three d stuff, you are worried about iteration so that if you cannot let the software get in between you and your creative design, then you're going to do more things more quickly. So in this case, let's say I wanted more of these items on this surface of the table. I don't have to manually click those and add them individually. I can use tools like the scatter tool, and I can just click and drag and make as many of them as I want on the screen. So we're just thinking about the process as you're going forward. And if you change your mind, you could just delete something. And in fact, what I'll do here is I'll just show you if I wanted to get some let's see. I want some apples on the table here. I'm gonna switch on my apples that I created earlier on, and you can you can easily just select these as a group. In fact, let's just add something so I can put these into an item. I'm gonna grab a bowl here. Let's grab this bowl. And if I grab the placement tool, I could just plunk this bowl down onto the table here, just move around, size it up, and so on. Let's say the art director comes in and they say, this is great, but we'll need you to put these apples in the bowl. So it's very simple just to select these items, and you can go into here we go. Go into a mode where you can select multiple things together. Let's just zoom in slightly here. And then you can collect those. You can bring them all together as one series of objects. Notice here how, by the way, how they're not intersecting. They know that they're in three d space. And here, in this case, I'm just gonna drop them up and move them over above the bowl roughly. And, because inside cinema, there's so many nice tools that we have things like physics in here. So I could just drop these apples onto the screen here. I missed the bowl slightly, but that's the beauty of this because you're not having to place these things manually. You can use the physics engine inside the software to actually make this more realistic, if you like. So you're not having to spend time figuring out where to place stuff. You can use the tools in the software to help you work more quickly. So this is just one example, and it's in in twenty minutes, I I it's tempting to go into every particular tool and show you how much depth there is, but I just want to give you a brief overview of things. So mentioning this physics aspect inside cinema, here's another very popular thing that we need to do all the time, which is working with text. And as a graphic artist, then you have to be thinking about how you can communicate things to your audience all the time and also gain gain their attention. So in this case, I've got some concrete text here, and one of the classic things is to use the Physics Insight Cinema just to let set it to crumble. There we go. So that that's the sort of thing that you think looking at it. That's actually visually quite complex. How do you set something like that up? And it's actually really, really easy. Inside cinema, we have a whole series of motion graphics tools, and they one of these is a fracture tool, Voronoi Fracture. And what it does, it allows you to set up easily how many segments you've got. And in fact, if I just click on colorize fragments here, you can see these segments. These are the segments that are breaking apart when you just press play because the gravity is automatic. But what if I wanted to increase the number of segments? So here we go. Instead of 30, I'm gonna type in here 200, and I'll also turn off the Colorize fragments. You can see all the fragments here. You can see how they're set up. You can see this is now 200 or so. But if I just jump in here and I turn off the Colorize and then just press playback, then we've got a different type of crumbling. And this isn't three d, don't forget. So that that this means that you can create these things really fast and then think, is that the right sort of crumbling I want? And then take it to the next step, if you like. So what if you had a sphere in the scene? And this this is something I'd set up earlier on, and I can instead of setting these to crumble automatically, I'm just going to click on Voronoi Fracture, and I'm gonna choose this little drop down which says under the under dynamics, rather than triggering it immediately, I'm going to trigger it on collision. And this is the thing about the layout. You see, I haven't really talked much about the UI, but it's very intuitive software to use, and all the controls are immediately available. So you're not thinking where is this thing hidden. It is very easy to just alright. Instead of that, I'll set this to be on collision. Press playback on my timeline, and now I can have lots of fun just smashing things out the way with the sphere. And you can set this sphere to be invisible and still smash through. So it's very interesting and fun. I know work's not supposed to be fun. Actually, it is for us. But it's a really great way of just being able to set things up and play around with the sort of effects that, you want to communicate to the audience. And by the way, in training sessions, this is the bit where you set this up, and then you just walk away for half an hour and just let everyone have as much fun as they like playing around with smashing these things around. Cool. So talking of physics, connecting some of the items as well. The, you can use this physics to actually set up, like, proper ads. This is an ad that was put together by Ellie, one of the members of my team, to demonstrate just this. And here we go. We've got the ability to take a logo and just automatically get the physics to help drop down these lemons. When life gives you lemons, you make lemonade soda. But the what I wanted to point out here is something really useful in terms of connecting the software together. Because as a designer, let's say you created this logo in Illustrator, and here we have this exact logo in Illustrator, and it has strokes along the edges. And in fact, let's just show you this. I'm starting from scratch. So the other key phrase Dave mentioned earlier on, which is, starting from nothing. And if we just start with this here it is. This lemon, I can just go in here, and I can just drag that into cinema. And immediately, here we are in cinema, and there is this three d element. In fact, what we'll do, if I go into this element itself and just extrude the depth slightly, you can see I've just I've done nothing except drag it into cinema. So you could be working in Illustrator or you could accept this file from one of your colleagues, And it takes those strokes in Illustrator, turns them into geometry, and colors them in those same colors as you had set up. So that's a really interesting thing. It's not getting in the way of your creativity. You're able to branch in between different applications like that. And and one of the other thing core things about making three d is that you want to see what it looks like. So in this case, we've got a good three d representation of what it looks like, but traditionally, you have to then press render and render these things for a number of minutes so that you can see the photorealistic or the creative vision. And that's where Redshift comes in because Redshift makes this super easy. So if I turn on the Redshift render view in fact, let me make some space on the screen here so we can see the whole design. So if I turn on the Redshift render view here we go. Instead of having to wait half an hour, go make a coffee and so on, you've instantly got the view of what it's going to look like in Redshift. And this is the power of not only the the coding of it and how it's built, but also the fact that it sits on the GPU. And you can do things like you can change I'll just scrub through the playback here. And so we're just looking at different frames in the scene, and instantly, I can see what it's going to look like. I can see what these lemons are gonna look like once they're rendered. So that kind of real time feedback means that you can do multiple iterations. You can work with the creative team. You can take direction from the art director so that you can change stuff and it's not getting in the way of production. So let in fact, let me show you how you can build this up on a particular scene. So let's swap over to here we go. Here is the scene where which obviously is in three d but isn't rendered. And if I add Redshift here, I just wanna quickly show you this easy to use aspect. If I turn on render view here, and, then you we'll see what the what the scene looks like. And I can turn around. Here we go. I can turn around in three d space as I'm updating the scene. I was zooming in. This updates the render. So I'm seeing in real time what it's actually gonna look like, but one of the hidden well, it's not really hidden because it's famous for it, but one of the key values inside Redshift is its ability to manipulate lighting, and lighting is at the core of rendering. So what we can do is we can go into Redshift. We can add a light. Let's add a dome light here. And instantly, that dome light then causes the scene to update because then you can see it's beginning to look much more photorealistic or much more stylized in the way that you want it to look. And then you can go on from this. You can use back to the asset browser where we were talking about all those thousands of different assets. We've got the ability to search through. Let's search through an HDR image. So this is a wide gamut, high resolution image, which has the ability to here we go. Let's choose this one. Has the ability to light the image or light your scene. So in here, we've got a spherical image. I want to use the lighting values of this captured image inside our scene. So in terms of easy to use, all you have to do is just drag it into the texture, and then that immediately updates. And so that that is the power of it. It's the real time update and ability to just quickly drag things on top of each other to be able to then create stuff from nothing. So the I in fact, this is I would say this session is reverse training because what what we usually do is we lead people through how to create scenes. But in in this particular case, I just want to give you a quick overview. So we've looked at cinema. We've looked at Redshift, and I just want to show you some of the other tools that complement them in the post production, area area. So we've looked at being an artist, a three d artist, creating things from scratch, and then perhaps working with the rest of your team who have to, embellish things and create particles, for example. So let's jump over to After Effects where I've got here Trapcode Particular setup, and this is where it lives inside After Effects. After Effects is one of those programs that sits on everyone's desk in post production, and this is why Red Giant is so hugely important to them because of the 100 and so tools that Red Giant provide to actually make things look better. And the core concept is that these tools are incredibly powerful. So inside Particular, we've got the ability to make particles. This is the default setup. And in the effects controls panels, there are more than 2,000 individual settings. But we know that you are a designer. We know that you want to get on quickly and create these things. So instead of having to sit through that whole panel, we created a a visual interface for this, and that is the designer. And so that looks like this. So the designer gives you the ability to be able to create things from nothing. And it's the same controls as you've got inside the main interface. It's the same physical controls, but in a much more interesting, unique, or a much more interesting visual way. So you can you can change things around, and I'll show you this in a second how you can create these particles from scratch. But one of the key things, just like the asset browser inside Cinema four d, are the extensive presets that you have in the designer. And the designer exists in multiple tools in the Red Giant, product range. And I just wanted to show you something here. Let's say you had to create standard things. You need to create fireworks. You need to set something from scratch. Then this takes into consideration not only the look, the color, the animation of the particles, the gravity. This instantly gets you set up so you can do this, without having to think about, well, how do fireworks work? How does the gravity? Do they have smoke? Do they dissipate in the wind? This is already set up for you in many cases. So here's a practical example. What if I need to create a an easy background? I'm I'm a designer and a broadcaster, and many of our media and entertainment, customers are needing to do these things in a few minutes at a time. They just gotta create something quickly. So in this case, I'm going to grab something from the nature presets. I'm just gonna click on autumn leaves. And I've got a whole series of leaves set up, and they're flowing across the screen to the right. I don't really want them flowing that way, so I'm just gonna reset. Easy to double click and reset things. Instead of just collecting in the middle of the screen, I'm going to set them to be a fill the screen and then increase the emitter size. Here we are. Then I'll increase the number of them. Particles per second might increase their size ever so slightly. And then we've got physics built into Article as well. So inside the environment, I might add some gravity. And so they're now flowing down the screen. I might also then, inside the simulations, enable meandering, which just gives a little more of that reality to particles. Like, if you'll look if next time you look at leaves falling, here's your homework. Then jump go and see how leaves don't just fall down. They meander. There's air resistance. They meand and same happens with snow. So it's these small details that help sell those particles to the audience. And if I click apply here, everything I've done inside this interface is actually inside After Effects on the timeline. So you'll be you're able to take those presets, make this into something which then you can practically use really quickly. A couple of other practical things. Whenever you think particles, you think pixie dust, you think fire, you think smoke and steam. So let's let's just look at this. If what if you are a designer and you had to create some steam or some smoke? Let's say some steam coming off a coffee cup. So we can jump into the designer, and it's really quick just to be able to to set this up. And there are there are tool in there to be able to speed this up. So, indulge me because I will make steam in ninety seconds with you. In this case, I want to have a cloud lit particle, which is a bit more steamy. I'm gonna increase the size of this somewhat considerably. I'll make it, emit from a sphere rather than a point, and then I'll make these fade in, out using one of the presets on the tools. So even the tools have presets in red giant land. And then I will reduce the opacity to be really something really small here. It may increase the number of particles. Here we go. So there's some steam generally evolving. So it didn't take ninety seconds. It took thirty seconds. And one of the other next key things you can do is you can then add simulations to it. So I'm gonna enable fluid motion. A fluid motion gives you the ability to use real world physics on on your particles. So let's just move this towards the right here. I'll just show you this. So what we've got here let's increase the number of particles. It's a bit more visible. We've got the ability to use these simulations to actually manipulate those particles and make them flow with those those eddies and those vortexes that you would associate with steam. So it makes it really quick to turn to make something. And in this case, here here's here's the result of doing this. Let's show you here. And so this is that same steam inside a coffee cup, and many, many graphic designers I know get to work on really great amazing imagery, and then sometimes they just have to create something which is animated in the background because also, next time you watch a Hollywood movie, notice how no one actually ever has any liquid in those hot coffee cups. They're they're empty. So you you have to fake this. So it's a standard thing to do to actually create steam on things. By the way, don't drink this coffee because I've been drinking this. This seems way too hot in this particular case. But as well as steam, you can then use that same concept to create, other visual effects. For example, this is the exact same thing I just set up. It's just got a wider emitter, and it's using that steam to actually or rather, it's using the simulations to create this really beautiful kind of cloud effect as if you're flying through the clouds. Now there's no key frames on this. There's the in fact, the only key frames on the camera movement, but there's no key frames on the actual particles. And this took about two minutes to set up. And this doesn't have any effects or any post production or glowing on it. We're just using the standard particles inside particular. So it just makes it really easy to visualize things. And a lot of the artists, we talk to also have to create, visuals for trailers, for movies. And sometimes if it's a it's a themed with the sky, they have to come up with clouds like this. And so being able to do this really quickly is very engages their creativity. So let's talking of creativity, what if you want to take this another step further? So let's just have a look at this. We have a technology which was introduced last year called flocking, and that's basically intelligent particles. So what we can do, we can tell the particles to be aware of each other. And inside the pre the quickest way to show this is just to jump into the presets and just go to the the behavior here. All these different areas, explosives, dust and debris. Here we go. Flocking. So if I choose one of these examples, if I choose this one here. Right. What is going on here? So we have let's just rotate this around back here. We have two blocks, if you like, or two grids of red particles and blue particles, and the red particles are firing particles at the other block and vice versa. So what's happening here? We've got a predator and prey situation. So just let me show you this. On the red particles that firing over to the blue grid, they are set up as a predator. And what's happening is that they are set to kill both the particles that they are firing at and themselves. So the whole point about this is that particles can then trigger events when they interact with something or at the end of their life. So in this case, if I just play this back, what's happening is that all the grids then are attacked by these other particles, and then they disappear. Great. What if you don't want that to happen? What if you want to change this and you, let's say, just do nothing? That's for these red particles going over to where the blue are. So then we'll do the same thing again. And what happens is that the blue particles aren't affected because we said do nothing, but then the red grid disappears. So you can be creative with this, and this is the core the core concept. I'm gonna show you something visually in a second leg that is much more useful. But I just want to get used to that core concept of things because then you can create all sorts of really interesting things like this scene. So this was created by one of our members of our training team, Hushy, and it shows exactly that same concept. You've got those instead of the blue grid, you've got a grid of space invaders. We've got those particles that are firing at each other, and that's what the the squiggly red laser beams, if you like. Notice the the dust here or the or the smoke trails. That's exactly the same process that I just showed you about how to create smoke particles. And in fact, talking of games production, a lot of game productions are made using particular as a design to see how these particles are gonna look, but once they're in the game and also as assets. I know one game developer who uses dust assets, as sprites in the game so that they can be triggered when an event happens without actually having to use up CPU routines as people are playing the game. So there's a number of interesting different ways where our tools are being used. But here's that thing I wanted to mention, that as and when these laser beams hit the space invaders, they trigger another event. In this case, another series of particles, which is a mini explosion. So that that's the sort of thing creative thing you can set up really quickly in terms of creating a scene. But, what if you wanted to do this with just motion graphics? You want to set something up with text. Let's just jump in here. This is a preset that, is in particular, and it's the same concept. We start with a three d model because you can use three d models inside a particular. If you use cinema three d models, I'm gonna show you that in a second. But in this case, this preset just has those particles eating away at that three d model. In this case, it's a sphere. So what I want to do here is jump into the designer and show you how easy it is to then turn this into a really interesting title sequence or a text sequence, if you like. So we've got this preset, and here it is down here. It's called sphere string erosion. But instead of having this preset, let's just rewind it here, I'm going to take a couple of these items. Here we go. So if we look at these different systems, instead of that primary system, I'm going to change that sphere to be let's change it to And in text, I'm just going to jump down on on the actual text itself and remove the the middle density for the faces and so we could just see the outline of the text. And now what's happening is that instead of eroding the sphere, it's eroding text. And if I press apply, then that applies it to the timeline, and we can see this on the timeline here. So within a few seconds, I've created a possible title sequence that could be added to one of the ideas. Maybe you're putting together a mood board as a as a designer. Maybe you're an editor, you just need something as a placeholder. This might become the end design, but it's just really quick to be able to create things which are more interesting than just blank white text. Right. Just thinking about that thing I just mentioned, which is using three d elements from cinema inside the rest of the Regiant tools. We we can do this, very easily just by clicking buttons. Here we go. So Cineware is the main technology, as Dave mentioned, that we can use to actually communicate between the different products. So here in three d space, I've got a series of grids. Instead of those grids, I can use a three d model to describe these particles. And we have a library of three d models inside most of the Red Giant tools and also the ability to add them from cinema. So this, let's in fact, I save this as a preset just to speed things up. Here we go. Here is a car which was created inside, Cinema 40. In fact, let rather show, don't tell, they say in training land. So let me just show you this. If I just jump into a recent project here, I've got a car set up, and this is exactly that same model. So if we take the same model in cinema, you've got a same project for Cineway that communicates directly, and so the same three d models can then be used. So in this case, we've got this car design, and then we can do all sorts of things to this on the timeline. I'm just gonna hit apply, and then it applies it onto the timeline inside After Effects. And and, in fact, also, another quick thing, you can do this with animation as well because, here here is an animation inside cinema. This this is one this is something that you can easily bring into cinema. There there's many, many different motion capture elements that we've got as part of the asset browser. And just let's do that same thing again. Show, don't tell. Here is the, the animation. Here we go. Particular animation. Sorry. A cinema animation. And so that direct animation, you can recognize the movement here. Actually, then as a Cineware file can be featured inside After Effects. And the the reason why this is useful is because notice the particles that are being emitted as the character moves off. That's the sort of thing you can do. So you've got your base movement, your base animation set up, and then you can embellish it inside different applications. Notice that we've also got a reflection in the floor here, and that's because the reflection is one of just one of the many effects inside VFX suite, which is part of the Red Giant set of tools. And we can set this reflection on or off. We can increase the the opacity. We can decrease it. You can be creative with, items without having to rerender, without having to, let any other aspect get in the way of your creative process. You can be thinking it and doing it at the same time. That that's that's what I like best about this process. And and so far, we've talked about, the the beauty of things and and the speed of working. So I just wanted to briefly talk about, how you can take things. Here we go. Here's that car, car feature. How you can take your beautifully rendered items and, as Dave mentioned earlier, make them look terrible. And that that's the joke, but there is a big visual language, between the process of taking something and then messing it up. So here we go. Here's, here's a sort of an open we're opening into Red Giant universe, which has so many different types of effects where you can stylize things and you can add let's say we wanted a a hologram to this. We can apply a hologram effect, and then that can begin to glitch this effect and begin to add scan lines and so on. And then we can do all sorts of messing up and creating something visually interesting, which then suggests the story. And there are, more than 90 different ways to do this, 90 different tools inside Universe. And here's here's an example quickly of the sort of things where you could combine some of those, just to quickly create a heads up display, something that we've seen in the movie examples beforehand. So I've got a couple of quick things, before I hand back to everyone just to to illustrate how you would then take those and then turn them into something, which is composited. Just on the way, I I couldn't not mention, one of our most popular, effects, which is something called VHS where we can take a beautifully shot screen and then using VHS, just turn it into something from back in the eighties. Here we go. So all those complex effects, all the noise, the mismanaged, channels and so on, and also the the edge of the screen, which doesn't quite match up. You can even make this four by three if necessary to go back into the eighties. These things are easy to set up with literally clicking a few, parameters here, but you're being able to look at your vision as you're doing it. So last couple of things. One and one of the key skills, if you like, is to make things sit together nicely. So in this case, we have a robot that we need to make fit in with this video taken from the Angel Island ferry at oh, taken from the ferry in San Francisco. This is the Angel Island in the background. And one of the beauties of VFX Suite, it has a an effect called supercomp, which layers up your effects, as we can see on the right hand side of the screen here, and allows you to work visually. So let's say I had to take this robot, and I wanted to make it sit in the background as a compositor. You'd know that you need to add haze. So we can just in that side, look. This visual tool, all the tools are at your, right at your fingertips. So we can just click on haze and then add some haze to that effect. And haze takes the image, takes the color to the background, and composite them together. And so you're not having to think about the background. It automatically recognizes the background. The same if you want to do some light wrap. So let's just jump into light wrap and then add some of that environment onto the edges of that character. So that I mean, you can see this already. That's taking some of the blues from the background, and it's making it more fit seem as if it's fitting into the background. And, of course, no composite like this would be complete if you didn't have a raging fire over the top. This fire isn't very convincing, is it? Because this is just placed over the top. If only there were a wonderful series of tools like in the presets inside Supercom where you could add in heat blur and glow to make this really change the background. So in in this case, we are we're changing the the background. We're distorting it like you would in a heat haze. And then you can add in some title text right at the last minute and make that title text also distort as well. And all these tools are playing back these are playing back off the GPU, so we're able to do this in real time too. So last little thing I wanted to mention was the ability to we've talked about making things look terrible. Let's quickly make them look beautiful. So in MagicBullet Looks, the flagship tool that Dave mentioned, that we have the ability to when you said this I wrote this down as well, said that Dave, everyone can be a colorist. So in this case, we've got images where we can very easily add color correction. Let's begin to then manage manage the levels of here, increase the brightness, maybe make this seem as if it was, like, a really warm day, add some diffusion in, to the scene as well. Here we go. Add some diffusion. Really quick to be able to change those settings and then be able to diffuse the scene and make it look like it's really warm. Here we are. So that last summer afternoon. But the key thing is here that not only is this creative, it's also technical because we have the ability to work in HDR space. So it doesn't matter how bright we make these images, they are being communicated to the rest of the workflow through, a whole series of intelligent color handling. So you can set up advanced color workflows for at the highest level, you can work with this with the, the ACES Academy workflows for HDR images. You can work with that with Magic Bullet as well. But I did say this is the last thing, but, really, this this is the last thing. Just with do you want to jump over that technology that Dave mentioned just a few minutes ago? This is really fun. So we've got the the new technology that enables you to be able to let's see. Is this the right one? Yep. Here's a video recording of being able to capture something on your phone, so on your iPhone specifically. So and you don't have to have a studio. This is somebody's room, very obviously. So we can just go around this basket and that we can create images, which then are turned into three d objects. So this is the first stage. Then the second stage is to jump back over to oh, here we go. And so we've got the ability to go connect your phone with Cinema four d. It then imports that image, and then it also then lets you compute that image too. So this is just really a screen recording of that connection between moves by Maxon and Cinema four d. And then here it is, computing objects, and then it turns into an object in the browser. And my very last thing to do is to show you that same basket that was just being scanned when I jump back over to Cinema and I open that scene, here we go, so the fruit stand scene, that that same exact scene, and I wanted to show you that basket as well. That's here we go. So let's just zoom out slightly here. So we want to just position that basket inside this scene. Let's just jump into the asset browser. I've got, let's just type type in baskets. Baskets. And here we go. Here is that exact same basket. I can use a placement tool just to drag that into the scene here, and then what I'll do is I'll just size it up slightly. Remember the placement tools let you place this anywhere? But what if we zoom in a little bit. What if we wanted to put this up on top of one of those other boxes or over here? Here we go. And then size that up, size that down. Maybe we want it over here. Maybe we wanted to just scatter a number of them around the scene. So, really, that's the easy way to do it. You've scanned your image, and then you're able just to throw it into Cinema, and you're not getting in the way of the creative process. Great. So thank you for letting me go two minutes over. It's just trying to encapsulate all those things just into twenty minutes. It was pretty tough, but there's there's so many things in there. Thank you very much, Simon. I think he's gonna stop his screen here. That was a extremely fast boot camp into a number of the tools that, Maxon brings with MaxonOne. And that I think Simon showed you maybe five of the 148 Red Giant tools plus maybe one feature inside of Cinema four d. There this is so much more in our product suites, so we had to give you a quick version of it. With that, I think, Axon and I are more than happy to take questions. But as you can see, Axon's a very different company than maybe other groups in Nemechek are. So we're happy to take questions about it, hopefully, that gave you a taste of what the Nemechek M and E segment brings to brings to the market. Wonderful, Dave, and and a big applause, and and thank you to both of you also, Simon. I think everyone could feel how passionate, you are at the end of the day, and I think you could have gone on for for, the other 100 and x features and products. At the end of the day, Dave Dave is right. This is this is different, but but it's also very much the same for some other businesses under the Nemecek umbrella. And and all of you are covering Nemecek as a group. And it's important to the InvestoREL team and myself to once again remind us of, you know, what the similarity at the end of the day, and that is that all of those businesses have to create return for our shareholders. At the end of the day, it's about value creation. I know your analyst life is about, you know, financial modeling, you know, about market size, growth rates, profitability, and a lot of figures. And therefore, thank you for your patience, in the last hour to bear with us for deep diving a little bit, many of your requests were in the last couple of years, to better understand the nature of this business and give you some hints of, you know, whom could you potentially turn to and ask when you want to understand, you know, what are the customers, what are the differentiating factors to some of the competitive products that are out there and come back to us and hopefully more and more engage into what we would have not done so often in the past, the media and entertainment discussion. So the floor is yours. We can go one by one. Just raise your hand. Dave and I, Stephie, we're at your disposal to answer our questions. Simon, of course, well. If we're not able or willing to answer the questions at this point in time, then please allow us a follow-up or respect our nondisclosure on some of those. Again, we're starting a series of a bit more communication about a segment that we believe some of the market participants have not fully understood, but there seems to be a lot of interest. I'm starting with Florian, Traysh, and I'll hand over the mic to you, Florian. Great. Thank you very much. I hope you can hear me. So actually, have some questions, if I may. So the first is more on the product itself. So you mentioned these game engine providers like Unreal Unity Software. So for me, it's interesting to learn how you are comparing or competing against these guys. What are you? And you mentioned the Cinerare initiative. You are seeing themself more as a partner in the context of winning a client. The second is then probably more for you, Axel. As you mentioned in the newspaper, this kind of 20% top line growth in coming years years as a target. What are the biggest driver for that? And how important really is this kind of a single client win? Or is it really a well diversified business here? The last one, it's not so big. As you mentioned, you're kind of internally using your software. Can you kind of quantify the benefits of it, I. E, what would maybe be the cost to do it externally? Thank you. Yes. I I guess I can go first on the Unity Unreal. And, you know, from my perspective, I I I assume they probably take a similar perspective. I think they're actually fundamentally different businesses. Unity Unreal make their money from playing back content, and they play back that content in games. They'll even play back architectural content. They'll play back AR, VR scenes. They're trying to create the metaverse. You'd often hear them talk about. They're about taking three d content and presenting it to somebody, and that somebody could be a game player or somewhere in a goggles or someone who's looking at an architectural scene and playback. And we are fundamentally not doing that. We're fundamentally creating content. And so if you were to go into Unreal and start with zero, you wouldn't get that far. They give you some amount of tools, but that's not what they try to do. They try to take content that's been created and play it back, beautifully and amazingly and fast. And so we create the content with them. That's why, Epic Epic actually gave us a, Epic Foundation grant to create the Cineware integration. You can take those beautiful things that Simon created in in Cinema four d and bring them directly into Unreal and then play them back inside of Unreal. And you can go back into Cinema four d to change them when you want them to behave differently. We're doing the same thing coming up with magic bullet. Those things that you're in unreal, maybe you're trying to play them back to a news broadcast, and they don't look the color you want yet because unreal doesn't have a color grading suite. You'd be able to then inside of unreal apply magic bullet to to make the the color look correctly inside of Unreal. So we're very, very much partners. We focus on creation. They focus on playback. So that was the, I guess that was the first question. I think the second one is over to you, Yeah. Thank you. And and, Dave, feel free to to jump in. But I think the question from Florian was about, you know, this this article where we would have mentioned the growth ambitions. I think I, mentioned 15, to 20%, at minimum 15%, which is an over proportional growth that, we want to see and we're expecting from that division to be delivered, as a contribution to the overall end group growth. And that alone, I think, speaks for itself that, where are the sources? I think that was part of the question as well. Where should this the growth come from? I've always realized that in my discussions with Dave and and his team, there's couple of the effects and the fruits that we can harvest now from previous activities, such as smaller acquisitions, for example. Would have been taking over a a dealer, for example, in a particular country. You would have acquired a small team with a particular feature on the sculpturing, for example, as Dave was mentioning earlier. We can, you know, take advantage of the subscription transition that successfully is basically gonna be, completed as we speak here. Then three d and and people in the industry talk about the the potential future explosion almost of three d being being everywhere. And that, you remember that that chart with the pyramid that Dave showed showed to you, that that is more the the the top part of that pyramid. So that's driving content actually more, to the top to the top. So we have a couple of sources, I would say, from gaining a critical mass to popularity, the combination, as I, was speaking to end customers, which, again, would be contracting with smaller agencies or Creative Studios, for example, to be then using our our software, they would be talking about, you know, our potential where we would have integrated what used to be Maxima Cinema four d, the Redshift, the Red Giant, all of those features to be found now in in in a bundle if you want all of them or in a debundled offering. And, again, we're expecting after that call that at least all of you have purchased a subscription. Just just kidding. No. But there's there's several sources, Flora, and I think it's a very good question. We cannot nail it down, to to really the one effect. I think it's couple of those elements that we're currently observing, and we would project and forecast them to be also relevant going forward. And, one of the last elements of your question, if I understood it correctly, was, you were wondering about how important is that single customer win or that custom that that new client. I think we have a very, very broad user base. And if I'm not mistaken, opposite to construction projects, which can last, you know, two to three years where our software gets used, Dave would have shown me with his team a lot of examples of end cases that were just done for, let's say, this feature, this commercial, this illustration, this Hollywood blockbuster special effect. So we're we're having a very balanced picture of and and custom base of many use cases, but they wouldn't last for several years. There is you know, they might hop off and on, basically, and acquire additional features or and and enrich their relationship to you know, with us, and and that might tie them even more into our offering. And don't forget that Dave and the team, what we're bringing to the market almost every week, right, Dave, or every month, in a frequency of new features, new capabilities, functionalities, it's is is is is much more than in the typical products that you're maybe used from from from managers. So there's it's much more dynamic. And that keeps also the customers really interested, you know, that that's also the potential for up selling, ups up up pricing in a certain way, as a win win really for us and the customers. Yeah. And, actually, I think the only thing I'd add is there isn't there isn't sort of any single customer that would point to that is, you know, even sort of measurable percentage wise in our revenue. We're growing in every country in the world, basically. We're growing across all those different segments I talked to, and it's often in very, very small design shops. So it's, you know, two, three, 10 seats at a time, and so we're growing across the industry. We we there is a really strong organic growth that Axel talks about, especially in this hiring content, two and a half d, three d. There's a very strong organic growth, but we believe we're going well beyond that. And that's leveraging the the expertise of bringing mobile companies together, the expertise of bringing mobile products together. Someone who would have been a very giant customer is now introduced to Cinema four d and vice versa. So we're really leveraging that growth that we brought together and and the strengths of all the different people at the company. And we do believe this was is a very sustainable growth. Great. Great. Super. I think there was one question for you or for for Simon. And given the many hands, maybe we can keep that short so that as many people as possible do have the opportunity to still ask questions. Do you can you repeat that question for me? I think the question was Lauren, did internally. Okay with the answers, or there was one particular in terms of the, I think, the some of the product features? So the idea was, to get a better feeling. As you said, you're using your, yeah, Maxon software suite in other internal products in the construction space. How much of a value add that really is and how this is really helping, yeah, to offer a better product. Yeah. Are the ties, really. I think Dave was mentioning them in his presentation. I also tried to point them out in my intro part that it's roughly 15% today currently that we estimate the business overall size of the division is tied into the AAC, but it's an important feature. Mean, Dave was mentioning at the bottom of this one slide, you might remember, Alplan, Vector and Graphio, ARCHICAD. So those authoring tools, the design tools, I think it's fair to say that they benefit. They have a better possibility to really differentiate with something like, for example, the high class state of the art best in breed rendering functionality. So it is important for them, absolutely. I think that was the original strategic intent, and I would always want to keep that really in house. Other competitors on the authoring design space in AAC might want to advise their customers to get that kind of feature from somewhere else. Here, from us, they really get it embedded as a plug in, as an additional within the vector words, within the ARCHICAD, within the ALPLA already. And I think that that that's a great teamwork here where where the individual brands are teaming up and working together quite well. Great. Thank you very much. Okay. Thank you, Florent. Then we have Sven, Merck. Great. Thank you very much, and thank you for the, the presentation. So, I was wondering if you could first talk a little bit about the subscription transition. It's obviously a big topic for the overall software industry, but also for LemonCheck at the moment. And so I'm particularly interested of, you know, what were the main learning and that you, you know, had during your your transition. And I'm very particularly interested, how many customers now after the transition are still on maintenance and kind of what your plans are to transition them also to a subscription model, what kind of incentives you really could give them. And then just a second question maybe. You now have done, obviously, a number of acquisitions. Would you say you have now pretty much a full portfolio of all the capabilities that you need, or is there still anything outstanding? Well, Dave Dave can walk you through the details and the good, bad, and uglies about how he transferred the business from perpetual to a subscription. I I can just say allow me, Dave, to to just mention two or three things that are maybe relevant also for the end group, which is I have learned, and please take that also not for granted, subscription does not equal subscription, and transition from perpetual to subscription does not equal transition from perpetual to subscription. None of those transitions that that I've seen, that we've seen at Nemichek is alive, is gonna be exactly the same, following the same pattern, the same logic, the same success. There is fundamentals that we have learned, which is one strength that is the learning that we can do with it with the right preparation, but there's a learning that also we should not and Enrique Glas, our Maxim CFO, is also here on the call. He can he can confirm that let's not underestimate the back end processes, how ready the organization must be. It's not just, you know, launching the web store and announcing your subscription. You need to be smart about how to price and and place and position the product out there, how to bundle or debundle, and be prepared with the back end processes, you know, and and explain the value. But but the bottom line is we can do that. And, I think it's fair to say that that more than two thirds of your business, Dave, in the meantime have have transferred already and gone through that transition. But you can, again, you can describe that much better. For Nemachek, it is an important theme. And I think one of the last proof points that we really want to go in that direction, that we feel the strategy is the right one, was the success of Maxon in the last eighteen months. Again, the duration of such a transition might vary. The success in terms of the magnitude, the accounting might vary. That's also important. Your Ts and Cs that you've been dealing with in terms of the perpetual license business originally might differ from one perpetual license business to another. So the IFRS accounting that would apply is somehow different, there could be a smoother or a larger dip. So be be careful that when people talk to you and say subscription and transition, check mark, it's all gonna be the same. It's not. Last last word from my side is that subscription does not equal cloud services and SaaS. That also is a confusion. We've been speaking with many of you many times about this, but there are still questions sometimes that we're getting that now that this is all SaaS and cloud, it's not. You know, for us, there is a difference, and there's also a different value proposition. This what Dave was talking about is subscription but still on on prem. And it's it's gonna be a huge success, and it's gonna develop further. Right? Dave, particular you you think has a lesson learned you draw as a conclusion? Yeah. I mean, coming from our perspective, one, then there is a nice thing that our industry is prepared for subscriptions. It's it's not we didn't have to start from zero. All of our competitors offer subscriptions to some amount. So a lot of the the conflict that you've maybe had with the industry when you're a first mover, we we we're able to avoid But what we really looked at is two factors when we wanted to lay on our subscription plan, and that is what is the benefit to the customer? And two, why why would we do this? And one of the biggest reasons to do this was remove the barrier to entry. If you looked at doing video editing, you know, when I started twenty five years ago, which is a little bit scary, the software at the time would have all cost $3.04, $520,000 depending on which software you used. But as became that as that became mainstream and more and more people did it, price came down. So when I got to Maxon, the price to get started with Cinema four d and a service agreement was over €4,000 just to get started. And so you had to convince yourself, I'm going to get into three d. I'm going to make this massive investment, and I don't get to I don't get to really try it out. And so we said is we're gonna lower that barrier to entry. We're gonna go into the competitive space. We're gonna say everybody should do three d, so so we should price it correctly. And so we brought that barrier of entry down to €60 a month or €650 a year if you want a subscription somewhere around them. I'm estimating a little bit. But we've said we're not going to make it 4,000 to get started. We're gonna make it €650 to get started. That was the first thing. So that gives you a bigger market to talk to, someone who's more willing to invest that money to get started. The second thing is, and this is what I love it, I it started to come from an engineering background. When you're dealing within the deferred revenue model in IFRS, you're allowed to develop your products differently. It's a very nice experience. You can bring out features whenever you want. You can add value to your customers whenever you want because you've already dealt with the accounting principles that allow you to do that. And so where we're allowed to go from maybe having once a year release if you're a cinema four d or every three years if you're a trap code or every nineteen months or something if you're a trap code, to constantly bringing out new stuff every month, keeping your customers engaged, adding services like training or or content that we're delivering every month, adding features when you want, integrating things when you want, we can become flexible as a company, which allows us to move faster in the industry and actually change the way we're doing things based on what the market is telling us to do instead of waiting on an eighteen month perpetual rollout. And so we were able to show the customer that value, and you asked about how many people are left in service agreements Outside of Redshift, if we just brought subscriptions a month ago, there are no service agreements left. That's done. Axel gave you a number. I won't say anything other than what he said. He said two thirds. That's that's fine with me. We don't go into that level of detail at this point, but I can tell you we're we're we're basically there with a subscription transition. It's been extraordinarily successful. Our customers appreciate it. In the first year of Cinema four d, we had more subscribers than we ever had in service. Thank you. Very, very insightful. Looking at the time, maybe I go again, from left to right on my screen at least. Knud Waller should be there from BARDA with the question. Hi, Axel. Sorry, I'm just getting the camera on that you can see me. Two questions, actually. The first one, looking at the growth rates that you communicated for Maxim, that's quite clear. How should we think about margins? That would be the And then the second one to Dave and Simon. You mentioned capsules as one of the areas of growth. How should we think about the monetization of capsules? Will you just try to drive the adoption and hence grow the user base? Or is it also something where you believe that can be monetized individually? And to which extent can you leverage here also the assets from other brands? For example, I remember you had objects for ARCHICAD, for example, and it looked a bit like what Simon showcased, that you used some elements like chairs, tables. So to which extent can you leverage that? Thank you. Thank you very much. That's a good proof point that some people follow us for quite a while and remember things very well. Thank you very much for the excellent question. So on margins, let me say upfront, Nude, that, you know, we're committed to invest and to support Dave and his team in any going forward, you know, business opportunity that we would see there. That could be organic. That could be, you know, r and d. That could be geographical. But, again, when we talk about the over average group over group average yeah, a growth pace, and mentioning the 15 at minimum, then we're also probably looking at a at a minimum of 30% as a roundabout margin. Without going into one particular year, without going into one particular detail there, but that's the expectation. The business has the power to deliver over proportional growth and an over group average potential margin. But again, the commitment from our side is that whenever we see opportunities to grab, you know, market share, customers, a geographics, organic, inorganic features, we're very committed to do so as we have done in the last couple of years. When the business really got more, I think you can all feel it in the focus also from us on the exec team and the management team. Go ahead, Axel. Yeah. Then from from the capsule side, it is a new strategy we've been rolling out quite a bit. We've had assets for a while, but the capsule's specifically been rolling out for a while. Most people in the industry who sort of go into these these areas actually try to resell other people's content, and it's a very difficult business to get into. They decide to they have to put in, management of how to look at the assets. Are they quality assets? Are they appropriate assets? They have to deal with all that, and it becomes a low margin business, and you to set up a shop. That's just not how we're looking at it. We're looking at it as basically saying, you a subscriber to MaxonOne? If you are, we want to offer you the highest quality content that we're creating, that we're bringing into the the group that we think is useful for the workflows you're working on. We wanna be able to then bring those assets or those capsules to any of our customers, whether they're using Cinema four d or using one of the products that integrates with Cineware. So if we have these great amazing content like trees and and chairs and desks, when you use Cineware inside of ActifectWorks and Graphisoft, we wanna make it available, that they can browse those same content of assets if they're a maximum one subscriber. Now we haven't gotten there yet, but this is something we do already in After Effects. You could have saw it where Simon looked for a three d object inside of After Effects and was able to find one from the asset browser in Cinema four d. So this is something we're rolling out. It's something we're building right now. We're actually building a team to bring the highest quality content out, but this is something we truly believe that MaxonOne is the place you should go for all of these, whether the materials, presets, smart objects, normal objects, HDR is that, HRIs that Simon showed. They should be something that you should get. And we give we're delivering on a monthly basis now for the last six to seven months. Every month, you get a new package of these. So maybe it's maybe in December, it's gonna be holiday pack or in, you know, Halloween, you're gonna get pumpkins. We don't we don't know yet, but we're gonna keep it fun, and we're gonna keep bringing stuff that our customers want, and we believe it's part of the subscription. Excellent. Thank you very much. Thank you. So George would be next according to my hello, George. We can see. Hey. No. Thanks. Thanks for the presentation, taking a question. I I just wanted to take a step back and really get into, I think, a point you you finished on, Dave, which is and and tell me if I'm wrong because I'm, yeah, I'm not at all kind of intrude with this industry, but it feels to me like if you're a design artist or a graphics designer, there's a whole variety of different products you would use depending on your particular assignment even from different vendors. And clearly, you've done some m and a in recent years to bring some of those pieces together. Thinking about a much kind of longer term outlook, is there a big story that's gonna happen in this industry where, you know, you're gonna have simplification of the amount of products that people need to use to get things done? Is is it very fragmented today, and and will that change? From that perspective, no, I don't necessarily think so. In in fairness, you're almost gonna go a little bit the other way at times. There are these kitchen sink type applications, but I mean that in a positive way. So if you're going to do anything with a photo, you're going to use Photoshop most likely. If you're gonna do anything illustration, you're gonna use Illustrator. They do really amazing things. I don't think you're gonna see companies succeed if they try to put three d inside of, you know, Microsoft Paint. Like, it's they're just different tool sets. So you wanna keep the tool designed for what you're trying to do, And especially when you bring out, you know, iPads and and phones where you're doing various pieces of the workflow, whether it's capturing a facial animation like you can do with Maxon moves or capturing an object that we showed, you're gonna be using more specific tools for parts of your workflow, and therefore, it's much more important that they learn to work together. You're not gonna lose those Cinema four d's and Photoshops and Illustrator. They're always gonna be there, but you're gonna find places where you're need actually more interesting tools. And I think that makes it interesting in the acquisition space is that there's people springing up for just doing machine learning for color grading, or they're just doing, you know, keen on on cloud computing. There's there's gonna be more and more opportunities because there's so much to accomplish in this space. That's helpful. I just wanted to add on to that. I I guess then thinking about that landscape and just, you know, thinking about what you've said around customer loyalty, it sounds like very, very sticky software that people probably don't want to shift between different vendors use at different points of time. Is that I guess that would be borne out what you saw during the subscription shift. Is that We're absolutely seeing really sticky customers. We're really happy with our retention. We have very loyal customers. We've known them from years. We get to hang out with them when we're allowed to go to trade shows. Hopefully, that gets back to normal, but we have very sticky customers. It is something that people invest their career in. And if, you know, as you as a financial analyst, if you had to change the tools that you use every single day when you go to work to something else, whatever that something is and something else is, you probably would be grumpy for a while. It's no different than our space. You're gonna be a creative every single day. You're gonna learn how our tools work, and you're gonna feel comfortable in them. And it's our job with subscription to convince them every day that it's amazing because they could leave us immediately, and that's value for them a subscription. And so we'd love to make our products more amazing every single day so that they want to open it up and have fun with it. Thank you very much. With a few minutes left, we have David and Uwe are left. Whoever wants to go first. Okay. I'll go first then. Thanks. Just two questions Can you give us any idea of an idea of how many customers are using multiple Macron products now? And if cross selling has been working as expected between the Macron, the historical Macron, Redshift and Norah Giant? And the second question is on M and A. What kind of assets are you looking at now? Are you looking more into the three d DCC space or more going down the chain toward compositing or editing? Yep. So for the for the first question, it is blank. The the first one was sorry. Number of customers. We don't give out a number of customers. We just try to avoid that. It it never seems to go well in the industry when people talk about actual customers. But what I will tell you is in the last year, MaxonOne, which is our combined subscription, has outgrown all of our other subscriptions massively. It's been a massive success. And in that, we're seeing that all and so many of our customers are using multiple products. Redshift, when we brought it out with Cinema four d, the bundle was unbelievably successful. Our customers definitely see the value in using multiple products. That's been proven out this last year. It's definitely one of the key drivers for our growth is they're not bringing in just one product. They're bringing in maximum one, or they're bringing in, you know, two products. So we don't talk about the actual numbers, but we're definitely seeing the value of the company's new products. More and more. Yeah. As far as where we're looking at acquisitions, it's it's definitely a combination. It's not we're not saying we won't really wanna go and look at this thing. We're saying what technology is out there and what people are working with that technology. So we want to find companies that fit. You can just go on and buy a bunch of companies and hope they fit together, and they're very different types of technology companies and try to just maximize the growth. And that's not what we're doing. We're looking for specific companies that have that sort of intent where they created the company with the artists, with the original people, where they would fit into our company, where the the the culture of our companies would combine well. And then it could be small and it could be large. So Bang was an example of something we brought in that was a very small acquisition. It was a fun product that we knew about in the market. It fit directly into the way we think about the world, and then the person who did it fit directly into Maxon. It was a great fit. So we brought them in. So we're not actually saying we're gonna go target this thing. We're looking for companies and technologies and products big and small that expand what we offer with Maxim one, but also fits culturally inside of Maxim because we're doing it as a single company. And I think it's fair to say that that the directional tendency is to really whatever we would find there as a complementary would be integrated. Mhmm. So we're not considering anything organic as kind of a a subpart of of the organization or of the business or the offering. Right? That that that is also different. So, Uwe, last last not least, the mic is yours. Yes. Thank you. Thank you, Axel. And, again, thanks, guys, for the very passionate presentation. Just one last question, really. And it's really meant less nasty than it may sound at first sight, but given the lots of M and A that you did as a segment, what does your internal R and D really do these days? And how happy are you with the R and D efficiency overall? I'd so I I think there's utterly sort of separated, and I think that's the pleasure of it. We we didn't acquire R and D into Cinema four d. We didn't acquire R and D into Redshift. We acquired products that complement each other, and the r and d going on each of those products continued at full speed. Cinema four d as just as an easy example, was the first product in the entirety of the industry to land on Apple's new computers with the Apple silicon. We were there on day one, and we were there with metal. And we've done the shows with Apple, and Redshift was there in metal. And those are massive engineering efforts. R and tier our R and D teams are the best in the world, and they're working on the technology stack they've been brought in to work on. But we're bringing in parallel technology tracks and then asking them to work together. So it's it's not that. Symbol 40 stopped three years ago, and we just brought in Red Giant and Redshift. Symbol 40 has had, you know, hundreds and hundreds and hundreds of features in the last three years. Red Giant came in and worked on Red Giant products. Redshift came in and worked on Redshift products, and so we have these multiple parallel streams of RD going forward. So we haven't bought to fix problems. We bought because the company's fit and the vision fit. Don't worry, Ube. There's no nasty question. So, with this one, again, a big thank you to all of you, who took the time, those ones that prepared, those ones that presented, Simon and Dave in particular. And, the offer, that once you would walk away from this call, hopefully, being, able to having learned a bit a little bit more about the insights really about the nature, the ecosystem, the dynamics, the fantasy, the passion that we all share, when looking at this business, when running this business, then please please turn to Stephie and the investor real team, to to follow-up on any potential questions. We're at your disposal. It is my it is our philosophy to open up a little bit more, be be because we have built a basis, which, you know, this was the phase one and phase two maybe to now be able to be a relevant player in a market that is somewhat becoming, more and more different from the core business of what Nanomicheck stands for. And, therefore, we feel the need, we feel the interest, and we wanna thank all the inquirers to to, be given the chance here to present because that shows the appreciation for the business, for our work, for the team. Dave can also take that back. I think that's that's the credit that everyone deserves. So we're passionate. We're optimistic. Thank you

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