Good afternoon, everyone, welcome to our Konecranes Service Investor Update. My name is Kiira Fröberg, and I'm the Head of Investor Relations at Konecranes. Before we start, I would kindly remind you that this event is to discuss Konecranes Business Area Service. Due to the securities laws in some jurisdictions, especially in the United States, we won't be discussing any merger-related topics. For merger-related information, please visit www.sustainablematerialflow.com. Our main star for today is Fabio Fiorino, our Head of Business Area Service. Fabio's presentation will be followed by Q&A. In case you'd like to ask questions, please submit your questions by using the chat function. The questions can be sent already during Fabio's presentation and we'll be moderating the chat. I have also our CFO, Teo Ottola, here with me in case we have any financial-related questions.
The content has been designed specifically to analysts and investors, and we have a lot of participants online today. Without any further speech, I will hand over to Fabio. Please go ahead. The line is yours.
Well, thank you, Kiira, welcome everyone. I'm really excited to provide you this update on our service business. Quite frankly, it's been too long since our last session. Without further ado, let's get on with it. Let's start with the agenda. We'll try to walk you through our service strategy and look at some of our business fundamentals. The popular topic of our agreement base. We'll try to unpack that a little bit for you. Move on to the financial performance and provide some further insights on that. A very exciting topic, digitalization and how it's enabling growth and profitability. We'll summarize the presentation, give you some takeaways, and talk about a bit our ambition level. We'll certainly leave quite ample time for Q&A. Let's start with the service strategy and fundamentals. What is the service strategy?
It is to provide industry-leading maintenance services for all types and makes of industrial cranes and hoists with the objective to improve the safety, productivity, and sustainability of our customers' operations. This strategy really rests on two pillars. One of customer focus, and one of delivering on these promises. Let's talk a little bit on customer focus. Our aim is to build long-term relationships. As you probably well know, the service agreement is the foundation of our business. We engage our customers through a consultative and open and transparent approach, deliver measurable improvements, and of course, strive for commercial excellence. Continuous improvement culture driven by KPIs. Now how do we deliver on these promises? How do we execute? First and foremost, lifecycle care, which is our comprehensive, systematic approach to managing customer assets.
We have created a digitally enabled customer experience, connecting data, machines, and people in real-time. Applying smart technology to transform our customer assets to optimize maintenance and operations. Last but not least, operational excellence. Once again, continuous improvement culture, very much driven by KPIs. Let's talk a little bit about the service business model, which is really all about managing assets throughout the life cycle. Let's start with the agreement base. What is the agreement base? The agreement base is primarily made up of inspections, preventive maintenance, predictive maintenance, remote monitoring. The digital services are largely within our agreement base. The agreement base represents about 20% of total sales. It is primarily sold through an outside sales force or agreement sales folks, and we are supported by an inside sales force that in the large part, does a lot of the renewals.
The base is actually executed, of course, by our inspectors and technicians in the field. From this agreement base, of course, ensues the corrective maintenance. Corrective maintenance, largely repairs, is another way to put it. Of course, it's our inspectors, technicians that execute that. Some of the corrective maintenance is already kind of pre-sold or is pre-authorized as part of an agreement base. Otherwise, it is sold by the inspector technicians by inside sales, very much either on-site, followed up by inside sales. It is all based on advice, based on the findings and the condition monitoring. It's all about speed, getting the customer issues corrected as soon as possible. About 50% of the business, 20% from this agreement base and 30% from corrective maintenance, 50% of the business is pretty much fundamental maintenance services, if you would.
Another 25% of sales is represented by a little more of added value type services, retrofits, which is like replacing components, adding components, adding features, adding functionality to the equipment, consultation services, modernizations which are, let's say, large-scale retrofits, where you're taking on a much larger project to extend the life or bring down the performance of the equipment. We also do sell a lot of lifting equipment. Primarily, a lot of light lifting equipment is sold through service. Again, we have an outside sales force, we call them service sales, supported by inside sales. This is a little bit more of a consulted-type selling approach. A lot of this is also analytics driven. We can see what's the age of the equipment, what condition of the equipment.
We can look at the maintenance history. We can create recommendations and suggestions for the retrofits and modernizations, et cetera. The last part of the business, the last 25%, a little bit more transactional. It's spare parts and accessories. Primarily, again, sold by inside sales or e-commerce, and the e-commerce portion continues to grow. It is all about convenience. Now, this 25% is not only the direct channel, not only sold directly to end users, but it also includes the indirect channel. It could be resellers. It also includes the component distributors. We would also call the alpha brands. That spare part business is included there. We also may have spare part packages that are sold as part of an equipment delivery. Again, very important to note, the agreement base is the foundation, and then the service orders flow from the agreement base. Look at our global footprint.
We're operating in approximately 50 countries. 40% of sales are coming from the Americas, about 45% coming from EMEA, and about 15% are coming from Asia Pacific. As you may well recall, we have had the MHE-Demag acquisition at the beginning of 2020 in order to strengthen our position in Asia Pacific, in particular within Southeast Asia Pacific, and the integration of that business is going along quite well.
The other countries, where you would see in gray, those are either addressed by distributors, indirect channel, or in some cases, if we have some large deliveries, we may service those from neighboring countries as well. We look at the available industrial crane service market. There's still plenty of market out there. We estimate the market to be north of EUR 10 billion, and you know that our sales are closer to EUR 1.2 billion, so we got a lot more opportunity out there.
The trends are certainly favorable. They're very much aligned with our strategy and with our actions, whether it's safety, productivity, sustainability, digitalization. Regulations and compliance continue to grow. There's aging industrial workforce in many countries, and of course, nothing new, the rise of Asia as well. That's, again, part of our focus. We're very much aligned with what's going on out there, and very much focused in addressing these trends. What are the revenue growth drivers? Again, as we've been talking about, the agreement base very much underpins the business, and agreement base expansion is certainly a revenue growth driver. We are uniquely positioned to tailor to the larger customers, the global companies, the large regional players. At the same time, we have been tailoring our service programs to address other segments and other customer types.
I think there is still a lot of opportunity when you look at the breadth of industry and the sizes and types of customers that are out there. There's, of course, we can continue to build on our base coverage, and we'll talk about that when we look at the agreement base. There is still opportunity to increase retention, to increase penetration, as well as building much more comprehensive agreements. There's still a lot of opportunity in the agreement base expansion, which again, drives then the orders. Digital services, very exciting area, and I'll be talking about this in quite in depth later on in the presentation, so I won't spend a lot of time here. This definitely is a growth driver, and we're gaining quite a bit of momentum here. Another exciting area is equivalent spare parts.
These are equivalent replacement parts and components for third-party equipment in lieu of OEM parts. We talked a little bit about the Asian footprint expansion. There's definitely a lot of opportunity there, as you've seen, only 15% of our sales are coming from APAC. Smart technologies, another area for revenue growth, whether utilized in retrofits and modernizations or some of our consultation services. An d then of course, there's bolt-on acquisitions. We're well into the MHE-Demag integration. We're moving into a new phase in the world. We have reactivated our acquisition engine. We are looking at opportunities. Hopefully, those will materialize in the future. What are our profitability drivers? First is organizational efficiency. A lot, again, underpinned by digitalization, field operative productivity driven by mobility and digitalization, centralization, being able to create virtual teams. Again, it really worked well through this pandemic period.
We were well ahead of the curve, and we actually accelerated our deployment and adoption through the pandemic period. Robotic process automation, customer self-service, end-to-end process optimization, and a big piece is data quality and data enrichment. All these systems and all the end-to-end processes are really driven by the quality of the data from end- to- end. Still opportunities in branch and warehouse consolidations, sales force performance management. The other area, of course, is material efficiency, very much centered on sourcing, distribution, and procurement. We do have cross-company-wide cross-Business Area procurement excellence strategic initiative, which of course, we're a part of. Opportunities also in end-to-end process optimization here. Data quality also drives a lot of the opportunities in material efficiency. And as mentioned before, this equivalent parts for third-party equipment to replace OEM parts. As well, worth mentioning, the MHE-Demag integration, we promised to deliver synergies there.
We are creating critical mass and leverage, optimizing, combining the offering. Then as we bring on bolt-on acquisitions, at some point, we're able to also leverage the business model and infrastructure, and that helps us drive profitability as well. Now let's turn the page a little bit, focus on the agreement base. Always an exciting topic. Here's a different way of looking at it, unpacking the agreement base by hoist brand. The hoist or the hoisting machinery is the part of the crane that, of course, does the lifting, does a lot of the heavy work, and usually requires the most maintenance and takes the wear and tear. If we look at the agreement base by what's the percentage of the hoists that have been manufactured by the Konecranes Group, that would be 45%.
45% of the agreement base has been manufactured by the Konecranes group, whether it be a Konecranes brand, a Demag brand, or it could be a component brand. Again, as we also refer to these as the alpha brands or perhaps a legacy brand, one of the brands we've acquired in the past. Which, of course, means that 55% of the hoists in the agreement base are manufactured by third parties, right? Which, of course, becomes also an opportunity for replacement. Hoists can be replaced when they reach the end of their service life, of course, or before. You could replace the hoist, improve safety, productivity, sustainability, reduce maintenance costs, et cetera. There is a lot of opportunity here to modernize, if you would, the fleet of hoisting machinery that's out there.
The other way to look at the agreement base or to unpack it is by asset coverage by the crane brand, if you would. If we go back, as you may remember, back to 2017, the last time we had this conversation. We have learned a lot. We have since then migrated most of the Demag agreement base onto the Konecranes systems, applied similar definitions, so we're able to compare apples to apples. We have recast a little bit the way that we look at coverage. We are looking at coverage based on the estimated asset installed base in operation. The estimated asset installed base in operation, that would be the denominator, and then, of course, the numerator is those assets which are under agreement. We are applying a consistent one Konecranes asset definition, and the asset generally refers to the crane, if you would.
It could be an industrial crane, it could be a light crane system, it could be a jib crane, et cetera. It's important to note that a single asset can have multiple hoists on it. Back to the previous slide about the hoist and the hoisting machinery. Hoists have a much shorter life than the crane itself, and a hoist can be replaced several times over the life of the crane. The other thing probably important to point out, that not all assets are created equal. An asset could be a few thousand euros, it could be tens of thousands of euros, it could be hundreds of thousands of euros, it could even be millions of euros.
There is quite a difference and quite a wide range in what we would call an asset, from a jib crane over to a nuclear crane or a waste-to-energy crane on the far end. That is important to note. When we look at here how we made some progress, and if we look at 2017 again, kind of recast into this new definition, we certainly made progress in the asset coverage of Demag, and we certainly believe that there is opportunity to continue that. We've also made progress into the coverage of Konecranes. Also worth noting that once usually the warranty period is over and the actual coverage starts to move up. A lot of times, sometimes cranes are also sold to EPCs or general contractors, et cetera.
There's a period between when maintenance would start from, and the period when a crane is actually delivered and handed over then to that end user. Hopefully, that adds a little bit more color and a little bit more insights to our agreement base, and certainly, I'm sure there'll be some questions on the topic. Now let's shift gears to financial performance. We certainly believe we've had a strong track record of performance and demonstrated resilience through COVID. If we look at our agreement base, and we're kind of starting with 2017, that's kind of the year of the MHPS acquisition or Demag, which is the Demag brand or MHPS. Just quite more important to industrial service and the industrial business. The agreement base has grown over the years, has performed pretty well.
Our focus areas in post-Demag acquisition were, of course, integration, delivering on synergies, finalizing the deployments, digitalization, et cetera. As we were talking, we were starting to turn from profitability to growth. Of course, as all well-laid plans are, we had 2020, and we had to shift our focus like everyone else in the world. Primary focus, of course, was safety of our people and our customers, business continuity, and really addressing essential industries. We serve a lot of essential industries, so certainly, our customers were counting on us, and the world was counting on us keeping those industries running. We've also had to do some very difficult decisions and focus as well on cost flexing. At the same time, as mentioned before, we accelerated our adoption of digitalization and some of the mobility and the virtual ways of working certainly helped us through the pandemic.
If that weren't enough, through that same time, even through our MHE-Demag integration, which of course started in January of 2020. With all that said, our EBITDA and EBITDA margin has been able to grow through the period. Going forward, what are we looking at? Getting back, definitely our main focus is to get back to revenue growth and leverage the cost structure that we now have, continue our continuous improvement journey, commercial excellence, operational excellence, and digital services and our digital ecosystem. Big topics, which we'll unpack a little bit later. If we look at 2021 a little bit more in detail and a little more focus, and start with order intake. We can certainly see that the orders have been picking up. We are returning back to post levels. Orders are up close to 12%, 11.7% on comparable currency basis.
The orders are moving in the right direction. We are pleased with that. The order book is at an all-time high. Quite frankly, we do have good orders on hand and a good order trend. Let's remember, the agreement base is not part of this order. If you're at a level of EUR 250 million, EUR 255 million, EUR 257 million in orders, and our agreement base is EUR 280 million range, you need to kind of divide that by four and add that EUR 70 million on top of this in terms of what needs to be kind of delivered. Of course, there is some seasonality to the delivery of the agreement base. Now when you look at sales, the story's a little bit different. Sales are only up 3.1%. We are lagging behind in terms of the order growth.
Base invoicing is up 6.4%, as I mentioned before, and I think we mentioned this in June, when we closed the quarter, that there's probably another EUR 20 million here that should have happened, again, because of this lag. Where is this lag coming from? There are supply chain challenges. We're not immune to that, like everyone else. Not only is there our own supply chain, but also in service, as you well know, we are servicing, as we showed before, 55% is machinery that we did not manufacture. There is a lot of commercial items. There are a lot of items coming from third parties, whether they're hoist or components, they're spare parts. That definitely is creating some challenges for us. Customer postponements and scheduling challenges as well. They have the same issues we do. You can see many industries in some cases are shut down.
In some cases, when they do have their components and parts, then they go full out, and they'd rather focus on their production, and it creates the scheduling challenges for us. Of course, COVID has not disappeared. Unfortunately, in many parts of the world, there continues to be COVID-related shutdowns and restrictions, specifically in Southeast Asia, parts of Latin America, but it's popping up again, unfortunately, in many other parts of the world. Labor shortages is another topic. Of course, the U.S. probably gets the most press, but there are other markets that there is a challenge as well. There are markets, also because of the COVID-related shutdowns or restrictions, it's hampering labor mobility where we would be able to move people around and send them to different jobs. With all that said, the adjusted EBITDA has increased 8% on comparable currency basis.
Our margin has expanded against 6.8% from 15.5%. Quite frankly, again, a lot of it is about leverage. We have very good flow-through margin in service. If sales would have been where we would have hoped them to be or should be really, that would have been positively impacted. We look a little bit deeper then into what's driving some efficiencies. If we look at personnel, we've gone from 8,000 to about 7,200 from the January levels. You could see the decline started kind of when the pandemic started. Definitely our business and digital transformation continues to drive organizational efficiency. The MHE-Demag also integration is well underway, part of this efficiency comes from that. We continue to apply lean thinking and continuous improvement and continuous culture and processes in place. Really, the service delivery model has been transformed by this mobility and digitalization.
Brick and mortar reductions opportunities still exist. Our goal is to continue to drive this ratio up, where we have the operatives to staff ratio continues to move up. We certainly are in the market to attract more operatives. We're certainly looking into the months ahead to continue to add operatives. To do so, again, while improving this ratio and driving efficiencies. We talked many times about remote monitoring being able to provide real-time insights of demand environment. We know that service orders are driven by capacity utilization more in the short term, and of course, industrial production as well in the long term. Really, we're talking about equipment usage, pretty straightforward. With remote monitoring, it does provide real-time insights by customer, by industry, and region, which allows for a more dynamic planning allocation of resources.
We have a little bit more foresight and more accurate forecasting than waiting for the data that’s generally available. That’s been a good thing for us. Customer satisfaction, of course, first and foremost is the customer. We do have a very systematic and comprehensive use of voice of customer and utilization of the Net Promoter Score. As you can see, it has been improving. Generally, 50% in most cases is kind of considered a world-class level. Of course, you need to look at your own business and how those are trending and what are the specifics. We still got a lot of work to do. There’s still a lot of opportunity to improve the customer satisfaction. We look at responses, we look at resolution metrics, we follow up all customer feedback. We have real-time visibility supplemented.
We use natural language learning to identify trends, provide further insights. Customer satisfaction, of course, drives retention and supports premium positioning. Here's the exciting topic, digitalization and how it can enable growth and profitability. Let's start with the big picture. We have created a digitally enabled customer experience or digital ecosystem that we're very proud of. What's a very exciting piece is that, as of last year, we were able to bring the crane operator into the picture, into the ecosystem. What I mean by the crane operator, we're talking about the individual that's actually on the factory floor operating the crane. We've done so with, I'll talk a little bit later on this CheckApp, which for pre-shift inspections and other types of services.
Of course, the crane owner had already been in the picture with access to yourKONECRANES, our customer portal, e-commerce, being able to receive alerts and notifications from the TRUCONNECT, able to provide feedback to the voice of customer. Our own people, if we start to look in this direction, of course, our inspectors and technicians, through their mobility apps and tools that they have, are able to not only enter inspection, maintenance, and asset data, they're able to be dispatched, able to get troubleshooting support, scheduling, and all sorts of things. Pretty much able to be totally mobile and independent. TRUCONNECT Remote Monitoring, again, we are able to bring in condition usage and operating data. Our sales and operations, planning, technical support are all working off the same platform, very much analytics-driven, very automated reporting, et cetera.
With all this data, of course, creates a lot of opportunities. Artificial intelligence, machine learning, mentioned before, robotic process automation, predictive engines to not only make our sales and operations much more efficient, but again, to deliver on our promise of improving the safety, productivity, and sustainability of our customers' operations. This is really exciting. I think we're at the tip of the iceberg. The infrastructure has been built. We continue to build on it, we continue to improve it, and we are at really exciting times. I think we're here at the tipping point of what is possible. We are seeing increased adoption of this digital ecosystem. How many assets now are under the 1KC system? We were a little bit higher, and then now with the acquisition bringing in more assets, it dropped, but now we're back.
Of course, we went through the pandemic, which slowed us down a little bit on our deployments. Now we're back on track to get back towards close to 100% over the next couple of years. We got some of the MHE-Demag countries to do. We already started with three of them. We have other remaining countries in other parts of the world that we still need to tackle, but we're pushing 88% right now, and that will continue to grow over the next two years to approach 100% as close as possible. The yourKONECRANES and the customer portal, the adoption continues to grow. When we look at adoption by the agreement-based monetary value is also much higher. We're pushing 60% or more, and that's because there's higher adoption by larger customers. The larger customers a lot more value add there in able to manage their fleet.
E-commerce also continues higher adoption. This is percentage of order lines going through e-commerce, mostly spare parts and other components, and so forth. This is by all brands. That continues to move ahead. That's another exciting area. Now we pause a little bit, look at what are the areas that we have focused on in the development of digitalization. Of course, there's digital services, which I'll talk about, smart technologies, customer experience, sales efficiency, service delivery efficiency, and service quality. Let's start with the first two, kind of customer-facing. CheckApp for daily inspections. Now, this is a pretty exciting product, a digital service. A pre-shift inspection or a daily pre-shift inspection is required by most jurisdictions. This is done by a crane operator. This is not done by our personnel. This is done by our customer's personnel. It should be a crane operator.
It could be production managers may be involved or safety personnel. Again, required in most jurisdictions. A good practice nonetheless, regardless of whether there is a regulation for that in a particular country. Very difficult to do, though. How do you document it? There's a lot of times with paper, dirty paper in the shop, and sometimes it's not even done. Now there's an app for that, call it CheckApp. It's kind of clever, I think, which allows for very simple and fast data entry. Of course, all this data is now tied to that asset data. It's tied to all the maintenance data. It's tied to remote monitoring data, et cetera. It's one more piece of the puzzle. Easily report defects. They could add photos. They could add text. Again, this is a big piece of compliance.
There are mandatory checkpoints, and you could also add some local specific checkpoints. Very exciting product. It's starting to take off. We were at the end of June, close to 14,000. Q3, we continued the trend, so we're doing quite well there. It is a subscription service, call it roughly EUR 100 per asset per annum. Again, it brings the crane operator into the ecosystem. It brings additional data. It brings the full view to the customer, and it's a quicker way to also identify maybe what's a safety item, and also for us to have greater insight into the customer. Here's another, we call it digitized slings and accessories inspection. Now, there's nothing really digital about a sling and an accessory, or at least there wasn't before. What is a sling and an accessory?
It's kind of the stuff you see here, is it's what goes between the hook and the load. It's what's used to secure the load. Very much mechanical items, chain slings. There are synthetic type slings as well, and other means to secure loads. In a large plant, there are literally thousands of these. Very hard to keep track of them. They do need to be inspected. We have created a very efficient way to do that. By adding an RFID tag to these items, we're able to easily identify and reliably keep track of them, keep track of the inventory. We've also created a way. This is done by our own inspectors, for them to enter the inspection data.
Then the operator can also use their mobile device to scan the sling or accessory and see if it has been inspected, what's the status of it, et cetera. Again, we sell this as an inspection service per device, and it really varies. Some are complex, some are less complex. Now, these devices, if they're defective, they're normally replaced here. They're not repaired. There is additional revenue stream from doing that. We launched this in a few pilot customers and it's starting, again, to really be adopted by our frontline folks as well as customers. Again, this is just a handful of customers here as we're starting to launch this and really get some traction. The other one, TRUCONNECT Remote Monitoring. I know we've talked a lot about this in the past.
We've focused on building retrofits available for multiple brands and harmonizing the platform for these. We've added brake monitoring in the past. We just launched, this is an exciting product, TRUCONNECT Wire Rope Monitoring. What it does is magnetic rope monitoring. It allows us to look inside the rope to some extent. A lot of times when you have certain failures, they start to occur, especially in heavy applications, process type applications, failure can start occurring what you cannot see necessarily in a visual inspection. This is a very exciting product. Again, very much targeted to process industry, heavy industry, heavy crane users where downtime is extremely important and they're having very high-value payloads as well. We continue to add connections to our agreement base.
Right now there's close to 6,000 at the end of June, let's say, 6,000 subscriptions that are tied to the agreement base. That is part of the base. Those can run anywhere from 100- 1,000 per asset. Again, the complexity of the asset, the number of sensors. We could also add life support to that. The total number of active connections exceeds 16,000. As the connections go out there, some of them also stop transmitting or something happens, et cetera. Right now, this is the number of active connections. Again, another area of focus. Of course, remote monitoring, condition monitoring drives predictive maintenance. With the remote monitoring, you could drive TRUCONNECT warnings, the hoist, the brake, the wire rope has reached economical end of life, and do something about it.
At the same time, on top of that, you could add prediction models and be able to create predictive maintenance based on other types of usage information. You have the direct measurement style here versus also adding prediction models and being able to automatically create a sales quote, for example, to say, "Hey, this looks like it may need repair, this item based on the number of hours, based on the usage, based on different conditions." Do the repair quote. Also, we're looking into the future where we take full responsibility for the maintenance of an asset that then it will just create us a repair order and just go out there and replace that item or repair that item at the most optimal time as well. Very exciting things as well. Again, on the cusp of breaking through. Smart technologies. Smart technologies, again, retrofits, modernizations.
You could apply some of this consultation services. Again, transforming the customer assets and really all about safety, productivity, sustainability. We could spend a whole morning talking about this topic as well. Some of the examples, sway control, it limits the swing of the load so it doesn't hit things beside it or individuals. Protected areas, you're not able to bring a load into an area that there could be a potential hazard. Snag prevention, collision avoidance where you have cranes on the same runway could create more automation. Add remote monitoring, side pull prevention, so you make sure you're centered over the load. Again, this is a safety issue, et cetera. There are a lot of opportunities with smart technologies to improve safety, productivity, and sustainability.
Equivalent parts, as we talked about this a little bit before, we're talking about extending our offering from genuine Konecranes and other OEM parts to equivalent replacement parts for all makes and models. Talking about reverse engineered parts as well as cross-referenced commercial parts. Now, this may not sound very digital, but this asset and component data and the process systems have been really key enablers in doing this and in allowing us to build here. This is a journey. We continue to add parts and models and so forth. You could see here. An example is an equivalent replacement guide for a rope guide. A rope guide is what goes around the drum and guides the rope on the drum, as the name so implies.
If we look at what is the opportunity here, sizing, seizing the opportunity to call it 300,000 third-party hoists in our agreement base, which we maintain and buy parts from. By having the equivalent parts, it gives us, both our customers and ourselves, another opportunity to perhaps be a little more cost-effective for them, and it gives us a little more margin opportunity for us, and also availability. We certainly have the availability in our own hands, which again, goes to the customer experience as well. E-commerce as well, we can obviously offer these to not only end users, but also resellers and other folks that may be involved in maintenance. Certainly, they are already on our e-commerce site, and we continue to add, practically on a daily basis, the parts. Let's talk about a couple of other areas now.
The customer experience, sales efficiency, service delivery efficiency, service quality. Customer experience, what are we doing there with digitalization? Well, we're trying to empower our customers and personnel with the right information at the right time. A lot of focus on the digital journey, harmonizing the digital experience across all the touch points, driving end-to-end integration. Again, all of it is driven by if you have the right data up front, whether it's from a sales case to a part number to a serial number, et cetera, it really drives that end-to-end process, and it really drives the customer experience and our own efficiency as well. Customer engagement, being able to manage multi-channel communications, having a customer 360 view, what's going on with all aspects of that customer with all of Konecranes and being able to manage the support with ticketing and escalation.
This has been an area that we've been deploying and implementing and continue to grow and improve. Oops, I think I went too far. Here we go. Sales efficiency. Harmonizing the ways of working. Again, end-to-end process, ensuring sales and back-office operations are aligned. We leverage the data we have. We utilize automation. A lot of folks who are revamping all our configurators focus on quoting automation. We're now able to use analytics and systems to suggest, let's say, a part. If somebody's trying to quote a repair, we're looking into the database and the system to actually say, "Here's the part number that you should be able to use there, and then here are the recommended hours you should be able to use." Remember, we're managing assets from the small to the huge, from the simple to the complex, multiple brands spanning decades.
A lot of the efficiency drives us to identifying that part, how long will it take to do the job, et cetera. The more that we can automate these things, the easier, the better the customer experience, both the speed and the more efficient that we are. We're deploying mobile sales tools both for field operatives as well, of course, for sales force. Deploying sales enablement platforms across the company, content management, training, coaching, et cetera. The other area is planning optimization to deliver on our total service commitment while optimizing field operative time. Again, also goes to sustainability, right? Optimizing the route, going away, centralizing planning, removing brick-and-mortar, et cetera, so it also makes us also a more sustainable operation. A lot of cool things here. You can match skills and job alignment, visualization of maps. It's very much where the operations live.
Of course, it has been deployed on a mobile platform, so our folks in the field have full access, whether it's an individual, whether it's a branch or a larger entity. Another big piece is how do we make our field operatives more efficient? Drive efficiency, data quality. Again, can't overemphasize the importance of data quality. Of course, the employee experience. The employee experience also impacts the customer experience. We're in the process of doing our 2.0 on our mobility platform, and it's going to be deployed here shortly. Trying to deliver a more enhanced employee experience, provide more feedback, guided behavior, so it's more intuitive and easier to use. Focus on asset data enrichment. We have launched an app that highlights missing asset data, makes the asset structure easier to navigate.
Again, asset data quality drives end-to-end process efficiency, the service delivery quality, and of course, leads to improved customer experience. Again, focusing on can we make sure we have all the serial numbers, all the model numbers, all the relevant data that makes it easy not only to quote things, but also to deliver and procure. Intelligent troubleshooting. We've launched a platform that helps the field operatives diagnose and correct issues in the field. The platform learns and improves as it is used. Of course, we also have humans if necessary. That we do have live technical support available via video. Again, a lot of exciting stuff, a lot of things that are just in the cusp or have been launched and are being deployed or haven't been deployed for that long.
There's still a lot of opportunity for us to learn and continue to build on these tools. Let's summarize. What's the takeaway from all this, and what's our ambition level? Talking about takeaway, I think hopefully it's been pretty obvious that digitalization has really transformed the business, and it continues to do so. We're not done. This is a journey, and we continue to build on that. A digital customer experience and ecosystem will drive growth and retention. It has created sales and service delivery efficiencies that have been locked in. Again, this is a journey, and there's more to come. We are always looking for continuous improvement, continue to build our systems, our processes, our ways of working. It's bringing new products and services. I gave you a good glimpse in some of those, some digital services, smart technologies, the equivalent parts.
It also allows us to be more flexible with our offering and more tailored to position and segment our offering to multiple customer segments, from the value customer to the premium. Being able to perhaps be more efficient in servicing the more value-type customer. Also, this MHE-Demag acquisition has strengthened our foothold in Asia Pacific. We've got a lot of room to grow there, of course. Our goal is to increase share of revenue from Asia Pacific. There are some also expanded opportunities in servicing non-crane assets. MHE-Demag had other industrial products, so we are servicing those as well. Of course, bolt-on acquisitions reactivated. I think we can now move into a more active phase and that could of course, bring additional potential source of revenue and profitability growth. Last but not least, what is our ambition?
Of course, our ambition is to grow, to grow revenue, grow the top line. We have mentioned in the past, high single-digit growth target over the cycle. At the same time, our goal is to continue our profitability expansion that has been going on for years, quite honestly. A lot of it is driven by leverage. A lot of good flow through margin and efficiencies, as you can see, that we continue to move with those, and there's still plenty of runway in both. Higher margin products and services. Some of the products and services we have shown you today do deliver those. That is my presentation. Thank you for listening. Now we can move to the Q&A part of the program.
Thank you, Fabio. We have a lot of questions coming from the audience, why don't we just.
I'm sure we do.
Kick off with the first one. You mentioned service addressable market is over EUR 10 billion. How keen are you to serve cranes by other OEMs? Is servicing your own cranes more profitable than servicing other OEM cranes? There was also a question on the penetration of our own installed base, but I think you covered that in your presentation.
Sure. First, let's give the direct answer. Very keen to service cranes made by other OEMs. Absolutely. First of all, we service customers, we're servicing their equipment. Customers have all types of, and makes and models of equipment, right? To service a customer properly, we want to service their entire fleet, no matter what make it is. Absolutely, we do want to service all makes, and very much interested in third party. When you talk about profitability, of course, proprietary parts. If we're employing proprietary parts in doing a repair, those generally do carry a higher margin than if we are buying those parts from a third party.
However, as mentioned in here, there are a lot of parts that are equivalent parts that we can either reverse engineer or acquire as a commercial part that may be a similar part that we are already procuring anyway. There's a lot of common parts and a lot of commercial parts as well on equipment. The other piece that's very important, a lot of these digital services are really brand agnostic. CheckApp, as I mentioned, that should be done on any piece of equipment. Profitability is the same no matter what the piece of equipment is. A lot of these other things, so these equivalent parts helps us with the margin as well on other third-party equipment. The other piece is, as mentioned before, there is not just repairing equipment, there is replacing equipment or components, right?
There is a limited life to a hoisting machinery, and it really varies from the larger equipment to the smaller equipment. There is quite a replacement cycle, and if Konecranes is doing the service and the maintenance and we're there, we have the opportunity when the right time comes to replace that equipment with our own and standardize as well for the customer to standardize their fleet. That also makes it more efficient for them. It could also replace that equipment not at the end of the life as well, as I mentioned before. There are other reasons that you may want to improve ergonomics or safety or different types of controls, et cetera. There are a lot of reasons, or the production has increased, and the throughput has increased. Now you need to improve the performance of the lifting equipment.
This is what we call retrofits or modernizations. As you saw, it's a significant part of our business. Absolutely, the servicing of other third-party equipment is, quite frankly, key and core to our strategy.
Thank you. Next question would be on the agreement-based growth. Why has the growth rate in the agreement base slowed down recently? How could the growth momentum be sustained in the early quarter of 2020, H1, during peak COVID? What would you expect the growth rate to be in 2021 and 2022?
All right. A few questions in there. Well, first of all, I think the way to look at this, if you look at our agreement base right now, it is well above 2019 levels, right? If you look at the performance of orders and sales, and not only for ourselves or other industries, there's been that volatility. The agreement base has not seen that. That shows that we've gone through the entire, let's say, pandemic cycle, well, it's not over yet, but most of the pandemic cycle, let's say, as we know it, and we've gone through what we would call a renewal period, and we've been able to come out of that with a very solid agreement base, which again, goes back to the resilience. I think that I would look at it more in a positive way than a negative way, where it is at.
I think it was mentioned, was there early growth? It's all about timing sometimes. You bring on certain larger agreements at a certain time, at a certain quarter. There's also a renewal cycle where we're able to offer at those times, perhaps, newer products and services, bring in new agreements and scopes. It's quite dynamic. There's literally tens of thousands of customers that we have, and it's a very dynamic situation. Sometimes, I think we shouldn't read too much into it in a specific quarter or short time period. I think we need to look at it on a longer trend basis. As far as what to look in the future, again, our focus is to grow. We certainly do not comment on a specific number on the agreement-based growth into the future.
You know what our revenue growth target is, and in order to achieve that, our agreement base will have to grow kind of in line with that.
Thank you. Third question. Taking into account the differences between Konecranes and Demag branded equipment, is there a major difference in asset coverage potential? What are the targets for the two brands? Is the business potential per asset very different?
There is a little bit of a difference in the sense that the Demag install base perhaps is, the word could be used, a little lighter. They do have a lot more chain hoist, light crane systems, et cetera, in their base than Konecranes. There is a little bit of that difference. There is a little bit of the difference that there are third distributors that have also traditionally sold Demag over the years and continue to do so. There are some differences from that perspective. In general, the target would be the same in terms of coverage. There really is no reason not to be. Again, let's remember, yes, there are some customers that has very loyal to one brand or another, and they have large parts of their plant, certain brand.
In general, most customers, and if you go, you step back, you look at a customer across multiple plants, they have all types of equipment and all makes of equipment. In essence, we look at some extent more by the customer that we're trying to take care of, rather than just narrowly by the brand, because customers, again, are buying multiple brands. There is no limit to the Demag coverage versus the Konecranes coverage, per se, from that perspective. No, we have not really set a target where we should be. I think you saw the numbers where we are in terms of coverage, or at least estimated coverage. It's not a perfect science. There's still room to expand, and there's obviously a little more room to expand the Demag brand because we're a little bit further behind.
With the MHE-Demag acquisition, that also helps us in that part of the world with the Demag installed base. I think there's a lot of positive trends and a lot of things to be positive about, and we just continue the steady progress.
Thank you. Let's continue with the Konecranes and Demag theme. How has the pricing developed over the past years, differences in pricing of legacy Konecranes services versus Demag branded?
Well, we have aligned the pricing. We have very quickly integrated the service businesses. We went, obviously, country by country, and North America was certainly the fastest out of the gate. We went around the world, basically integrating the business the same way we are doing it with MHE-Demag now. In terms of pricing, in the end, there is no pricing difference because we are one service organization, servicing both Konecranes and Demag and really all brands. We market ourselves as a service company for all makes and types. The pricing is aligned. We certainly looked at the opportunity to look at best practices and pricing and in doing that alignment and getting some insights on which legacy organization was doing things better than the other, perhaps, or different than the other, and then try to apply the best in class, and that's what we did.
Let's continue with pricing. Business Area Industrial Service growth has been relying quite a bit last years on increasing spare parts prices every year. How much spare parts prices can still increase as individual parts prices are getting already above a new equipment? Quite a lot of insights this questionnaire has.
Yeah. Well, that's obviously a broad statement. There are literally thousands upon thousands of spare parts. Each category has its own dynamic. The pricing that we've done certainly is to keep ahead of inflation. If we look at what's going on in the world. The inflationary pressures, certainly there. Commodities have grown, pricing of commodities and cost of commodities have grown incredibly. You also look at transportation costs, container costs, again, global supply chains. You look at operating in the COVID environment that we had to in terms of new protocols, and other things. A lot of it has been to make sure that we keep pace with inflation and what's going out there. When we look at our pricing or spare parts, there are some that we don't increase, there are some we actually reduce. We try to be market-oriented.
Yes, we understand spare parts can be relatively expensive. That's in all industries. We try to also be cognizant of being competitive. We're not alone out there. We want to make sure that our offering is competitive and also stays in line to make sure that our equipment is competitive, and folks are looking at the total cost of ownership. You can't just look at the price of a single part. You got to look at, again, total cost of ownership. How often does something fail? How reliable is the equipment? Do you have a full program in place to make sure that you have the productivity and the total costs to where they should be? It's easy to point at one thing. I think you need to look at the whole.
Thank you, Fabio. Could you talk a little about the demand fluctuations of your various service subsegments, for example, parts, modernizations, maintenance, et cetera, throughout the pandemic? Where are we now versus pre-pandemic levels? What are you expecting in terms of pent-up postponed demand?
Yeah. First of all, it really varies, right? The pandemic had different impacts across the world and continues to have different impacts in different geographies. Of course, right out of the gate, the one thing that does get impacted, when you have access issues, right, when you talk back to the pandemic, that is executing on the agreement base, the inspections, preventive maintenance, predictive maintenance, being able to get on site, was obviously a limiting issue. There are essential industries that was easier to do. There were others that were totally shut down, and you couldn't get at them. There were also different attitudes of different customers in what they wanted to do. Of course, when you have the agreement base being affected, you're also not doing those repairs and other things. Again, it all goes back to equipment utilization, capacity utilization, et cetera.
If equipment's not being used, it's not wearing, it's not, et cetera. That, let's say, basic maintenance or fundamental maintenance certainly fluctuates much more with utilization and with access, right? That's come back largely, right? Again, we have parts of the world that are still in a different phase. There is more the CapEx picture where you have some larger modernizations, et cetera. We are seeing some of that demand come back, some of that pent-up demand come back. Really, it's a mixed bag. It's a weird environment to be operating in. You got some folks that are taking a little bit more time with decisions.
They also, again, going back to this whole global supply chain issues, you got a lot of customers that are really focusing on their own operation and their own issues, that perhaps are taking a little bit more time to look at some of the larger CapEx stuff. We've also seen in other areas some pretty good modernization orders being let at the same time. I hate to use the old word. It really depends. It's quite a mixed bag in this environment.
Thank you, Fabio. Hey, we have now used almost one hour. Would you still have some more minutes time to take a couple of more questions? We have a lot of them waiting.
I do if you do.
I do. Good. Let's continue. Next question would be on the installed base. At the time of the MHPS transaction in 2016- 2017, investors were told that the Demag installed base was 15%-20% penetrated by their service business, whereas the comparable number for Konecranes was in the mid-30s. Whilst the trend you highlight on slide 12 is clearly positive, I note that the penetration numbers themselves are non-comparable. Can you explain the difference between these penetration numbers and those communicated to investors in 2016- 2017? Thanks.
I certainly will try, and I tried to do it at the time I showed the slide, but obviously was not successful. When we were looking at the installed base then, I think that the phrase we use is delivered pieces of equipment. A lot of equipment, in both brands in the Konecranes side, if you include all the brands and Demag, if you include all their equipment they pushed out there, both have about roughly was, I think, a million pieces of equipment, let's use that number roughly, right, that were pushed out into the world. They're very similar, let's say, in number of pieces that were thrown out there.
When you look at that, as I was trying to explain, there is a difference between what you would classify as an asset that's made up of maybe multiple pieces of equipment, a crane that has multiple hoists or a light crane system, quite frankly, which Demag again, has been a market leader in a lot of light crane systems in their installed base and the agreement base, which have multiple hoists. They could have two, three, four, or five, et cetera, number of hoists, these chain hoists. When you start to look at that and redefine it more as what is the asset, what is the big piece of machinery that's made up by all those components, you get a different number in terms of that denominator. It's not a million anymore.
It is something much less because you're bringing together some of these hoists into one asset. In addition to that, a lot of these hoists, especially when you get into the lighter side of the hoist, they get replaced, right? Some of these were sent out as replacement hoists. Of course, they may have been, as I was trying to explain before, they may have been switched over on a single asset multiple times. At the time, that was the data we had. That was the best data we had. We knew that roughly this a million pieces of equipment were out there. Then we know the number that we're servicing, and that's our best way to show now that we're a lot smarter, or we have more data, let's put it that way, and we have been able to migrate a lot of that base.
Also we are migrating a lot of the manufacturing information, et cetera, into our systems. We're able to be much more granular, much more precise, and look at this more at the asset, as I was mentioning before, the active asset level. That's what makes the difference. I think how we're looking at it now is probably the better way to do it. It's just we did not have that information at the time. Going forward, this is how we're going to continue to track it. Again, as we continue to migrate MHE-Demag stuff, our data gets better every day. Our granularity gets better every day. Our insights get better every day. Hopefully, that answers the question.
Thank you, Fabio. Let's now move to inflation. What is the level of cost inflation, salaries, material used in parts, et cetera, you are seeing in Service business unit? Is pricing a challenge? Are the margin levels seen in past years sustainable when your business moves into growth phase, taking into account underlying inflation and potential labor shortages?
Yeah. I won't comment to specific percentages, and it varies, of course, across the board, right from labor to materials. Materials, you can unpack that, depending if it's something that's got a lot of steel content or copper content or what have you, or there are other areas where the transportation is affecting it, et cetera. We have been, again, back to reiterating what I said before, we've been very much trying to maintain ourselves to cover those costs and be very dynamic about it. On the other side, we're also, again, with this procurement excellence and focus on sourcing and other things that we can do ourselves to dampen the effect of inflation. We have been doing so as well. The other piece, as we talked about, is we continue to drive efficiencies. There's organizational efficiency driven by digitalization.
There is the reduction of brick and mortar, how we can operate in a more efficient fashion. Of course, we've also learned that you don't need to travel as much as you did in the past. Of course, there will be some return to that. There's a lot of dynamics in the end, and there's a lot of other products we're bringing in that perhaps are of these digital products also are of good margin products. These equivalent parts also allow us to expand margins when it comes to third-party equipment. There's a lot of pluses and minuses. There's a lot of moving pieces. Our goal, as was stated, is to continue that profitability expansion, and it comes down to a mix of all these things that were mentioned. We do believe that we can keep ahead or keep track of inflation.
Thank you. Let's now move on to Asia. How would you compare Asian competitors' technical performance and capability against Konecranes? Seems that Konecranes Business Area Service just keeps struggling every year, especially in China and India, due to too high premium pricing position by Konecranes, resulting to that market is seeking and having preference on local service providers instead of Konecranes. Your comments here, Fabio.
Well, first, of course, Asia is quite diverse and vast and broad, so there isn't a single answer to the Asia question. As was mentioned in the question, you can look at it with specific countries. Yes, we have taken a premium approach. That has been our decision not to chase the low-cost competitors. Again, our goal is just to work with customers that are really interested in safety, productivity, see the value of what we can bring. Of course, those markets will continue to develop. I believe that over time, those markets will mature in their approach to maintenance service and their approach to what is required. You're seeing that in some cases. It is very difficult to go chase the race to the bottom of the local supplier. We'd rather work with the customers that appreciate the value.
We are certainly looking at how to, as I mentioned as well, segment our offering as much as possible, we are looking at those things as well. How do we deliver services that are more tailored to a certain customer group? I don't think we'll ever chase the bottom. That's not who we are. That's not where we believe the value is. Quite frankly, we don't believe that that's how the customer in the long run will profit or is what is required for them in terms of safety, productivity, and so on. Hopefully that answers the question.
Thank you, Fabio. Let's now move on top line. In the past, total services revenues were 5 x to even 6 x agreement-based value. In H1 2021, annualized services revenues were 4 x. Is the ratio structurally falling, or would you expect return to previous 5x-6 x?
Yeah. Well, there is the question of what's in the agreement base sometimes, too, and as you try to bring in more services and things locked into the base, there is a little bit of that dynamic that could play into the ratio. Not sure there's anything structurally perhaps different. A lot of things have happened over the years and there's been a lot of movements of things as well. We also, in the past, also had Port Services as part of the BA, if you remember before the MHPS acquisition. I wouldn't read too much into it. I think structurally where we are, I think we're in a good place in terms of the business dynamic, and it, of course, will change with the cycle. This whole pandemic certainly did throw the ratios into a bit of upside down.
I mean, if you were to look certainly through the pandemic period, our ratios did get a little bit messed up because for simple reasons, you may be doing some of the maintenance or the inspections, but then if you're not using as much of the equipment, you're not doing the repairs, you're holding off on CapEx and doing other things. The priorities and the whole dynamic, I mean, the whole world was pretty much upside down. I wouldn't certainly take a look at 2020 and read too much into that. If the question is would the ratios go back more to a more normal beyond 2020 and then so forth, yes, I would expect that.
Thank you. We still have some more questions, so let's keep going for some minutes, if that's okay to you, Fabio.
Sure.
Sure. Is it so easy for you to service other OEMs equipment? Are there any barriers to entry for other OEMs to do the same with your own equipment? Can this turn to be very deflationary price competitive for everyone?
Yeah. First of all, the technology in lifting equipment is not too different, right? I mean, we're talking controls, motors, drum, rope, hook. Definitely we could service other types quite easily. The key then is obtaining proprietary componentry and where do you source that, to the extent that that piece of equipment has proprietary componentry. That's really the only difference. Everything else in terms of the knowledge to inspect, the knowledge to replace, et cetera, is very much out there. Most local competitors, service companies do service other pieces of equipment. What I think makes us uniquely positioned is, of course, our network, our size, our leverage, our systematic approach, our ability to source, our ability to provide equivalent parts, our ability to provide retrofits, replacement technology, replacement equipment, the full range, et cetera.
It's not just about just servicing the equipment, it's providing the entire package, the entire approach. Of course, as I mentioned before, other services are kind of brand agnostic, some of these digital services and other things, and consultation type services and so forth. There is no barrier. No, absolutely not. At the same time, I believe that we are uniquely positioned in order to service those. Most of our, what you would call competitors, global competitors, if that, they're mostly selling through distribution. Most of our competitors at the end user level are local or maybe regional companies in the country. It's a little bit different. There's a lot of them. They certainly do service equipment. They service ours, too. I mean, that's no secret.
Again, when we're talking on the bigger picture, we certainly have the offering, the capability, and the reach that makes our offering quite attractive.
Thank you. What are KPIs incentives for service sales employees? Would you say that you have emphasized margin improvement or growth post the Demag acquisition? Any change coming in priorities and incentives? Can the margin go above 20%, or will you go purely for growth if you reached 20% margin?
Good questions. I mean, certainly we have emphasized profitability over growth in the incentives, I won't give away what that weighting is, but there is certainly a weight to profitability over revenue growth. We will have to take a look at whether that weight changes as we go into next year or not. Some of this stuff we try to align across BAs and different things. I'd rather not comment on that. You certainly want to align your incentives with your direction and so forth. In terms of the 20% and beyond, we have not set that target specifically. Our target is to continue the profitability expansion and see where it takes us. Again, I think it's good to point out that the revenue growth does drive profitability expansion.
We shouldn't underestimate the leverage and the flow-through margin that the service business can produce, especially as we have built the infrastructure and we continue to create this organizational efficiency. Our goal is to continue to build sales with less width and leverage that infrastructure. Definitely, bringing in more and more operatives, but the infrastructure costs should not grow at the speed of the top line. Revenue growth goes hand in hand with profitability expansion as well.
Thank you, Fabio. We still have time for two more questions. Let's continue for a couple of minutes. Let's continue with this target theme. Could you reiterate and specify what you mean with high single-digit growth? In 2009- 2019, Service sales compound average growth rate was 4.8%, including acquisitions such as MHPS. High single digit sounds unrealistic. How could you reach the targeted growth?
Well, high single-digit, what does it mean? I think it's pretty self-evident. It, of course, it is a range, and of course, depending on the year, there may be different circumstances and opportunities. That revenue growth, of course, does include any other bolt-on acquisition that we would do in the future as well. Again, how can we achieve that? Well, our focus has been really on this profitability expansion and really building the ecosystem that I've shown, building the products, getting the integrations done, and really building ourselves for the future. We really built the engine at the same time. Profitability has expanded, EBITDA in monetary values has expanded significantly, and we're now positioning ourselves for that next phase. There's plenty of opportunity. Hope you can see there's plenty of opportunity with new products. There's plenty of opportunity geographically. There's plenty of opportunity with larger accounts.
We also believe there's plenty of opportunity as we tailor offering also with the smaller accounts. That's our goal and our focus going forward, and let's see who's right and who's wrong going forward.
Thank you. Are you currently leveraging your industrial service best practice into your Port Solutions business? Have you started to transfer some of the competence you have into the port business yet? If so, what impact has it yielded on profits or growth thus far?
Yeah, I won't specifically comment on the impact. I mean, we certainly talk to each other and share best practices and do so on a regular basis, and so forth. The structure of the port service business is a little bit different right now in terms of how much is agreement-based, on how much is spare parts and retrofits and other types of services. If you were to look at that breakdown that I gave, it would look quite different from the Ports business. They also have different business as well. You got lift trucks, which a lot of it is distributor-based and so forth. It's quite a little bit of a different structure, right? To be fair, I think the question needs to go to my colleague, Mika.
We obviously try to learn from each other, try to leverage some of the systems, try to leverage the practices, leverage the infrastructure for spare parts delivery, supply chain procurement actions. There's a lot of things that we do leverage, a lot of things that we do share. I'd rather not comment on the specifics and what it has meant to that business' growth and profitability. I'm sure Mika will be happy to do that.
Thank you, Fabio. Unfortunately, we have now run out of time. We need to conclude this event. Thank you so much, Fabio, for spending the early morning U.S. time with our investors and analysts. I think that based on the number of questions, we should arrange these kinds of events a bit more regularly. I also want to thank all the participants for the active participation. A recording of this event and the presentation in a PDF format will be available on our investor website later on. If there were any critical unanswered questions, we will of course, have a look at them. Then we will try to touch upon this event on our IR blog also, by latest by the end of this week. Thank you, everyone. Have a great week.