Husqvarna AB (publ) (STO:HUSQ.B)

CMD 2016

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Sep 8, 2016

Good morning. It's great to have you here. Warmly welcome. We do appreciate that you take the time to spend vital parts of the day with us. And it's so nice to be here, I would say, in the product mecca of Husqvarna. This is a little bit the dream for many people to get their chance to touch and feel various types of products. I would like to start by introducing the team who's going to present, and the day will be about profitable growth, but you will hear a lot about that. But let's start with the team. Here Henrik Andersson, President, Construction Pavel Heiman, President, Husqvarna Division Jan Itterberg, CFO Sasha Menckes, Head of the Gardena Division, President of the Gardena Division Jeff Holler, President of the Consumer Brands Division. So these are the people who's going to be up on stage today. But we also have some other people from the group management sitting in the room like Per Ostrom in charge of business development and M and A Sofia Akselsson in charge of communication, brands and marketing and Francesco Francier, who is the program general for AIP and now another program that we run internally, which I'm going to talk about under the headline of further efficiency improvements. Valentin Dahlhuis, who is in charge of group operation support. So these are the people from the group management that are present. So you will have the chance to chat with them hopefully in a break or so. So before I get into the theme too much, what attracted me to come to Husqvarna was really a combination on one hand of, to some extent, an underperforming market leader. If you look at the growth that the company actually achieved, the profitability the company achieved versus the fantastic leadership abilities the company has. Great brands, great product innovation, strong channels to the market and many other assets to explore. So really, the conclusion at the time was I want to be part of the journey together with this team to get this thing in order and really get to the full, capture the full potential of this company. And this is where we are in the midst of doing. I will say we have just about completed one step of that journey. And the core message for the day is really 4 bullets. Number 1, we have actually delivered on what we have set out to do. You will see a little bit the proofs of that. I will not spend a lot of time on that because we have talked sufficiently about it. We are right now in a situation where we can say, yes, we have proof of concept of the reorganization that is actually delivering what we expected. And we have now a momentum where we move into the profitable growth. We have taken the journey up. And some of you will remember this illustration from 2014 Capital Market Day. We talked about profitability first and then profitable growth. So it's exactly the same thing, all with the intention to get to the market leadership aspiration by 2020. So we're just at that turning point right now where profitable growth is becoming the core theme. 3 divisions are actually in that mode and have been working with plants and have very broad initiatives actually supporting it and are funding investments to support it. One division still in the profitability improvement phase and that is the consumer and you will hear Jeff talk about his 5% target 2018 later. 4th bullet, we are accelerating also the innovation and that goes a bit without saying here. To support the market leadership aspiration, we are going to increase the pace of innovation we bring to the market. We'll cover that to some extent as well. So this is really the core message of what this day will be about. But I think the real highlight for you, I would expect will actually not be me or maybe not even Jan, with all due respect, but rather to listen to the divisions today and get a feel for their agendas. And you will see that there's quite some width of what we're trying to cover here. So I think that's the true highlight. And of course, combined with opportunity during launch to take part of some interesting innovations actually that we have and are proud to present. So where to start? For me now, if not to then really get to the bottom of how do we really view profitable growth. The way we define it is actually we say we want to outgrow the market with 1 to 2 percentage points per year. That's the reference. That's the reference we have when we look forward. We'll talk about what that translates into given the historic development of the market. If we do that, if we have that type of growth, we will reasonably have a leverage on the profitability and we will see a continuous improvement. That's what we expect. So always a little bit of a balance how you emphasize the growth versus the profitability improvement, but I think the long and short of it is, it should be a continuous improvement of the EBIT margin. That's what we expect. So those two things are at the core of how we see actually the profitable growth definition. Let me for pedagogical reason then take you aboard the journey we have been on since 20 13. And the starting point here was, as you will recall, most have followed Husqvarna to some degree that the accelerated improvement program that was the vehicle to support our profitability improvement. And really, we launched it October 13. We finalized it by the end of 2015 from an activity point of view. Yes, there are some full year effects that is really affecting 'sixteen P and L in a positive way. What was it about? It was actually about some various bits and pieces, but the major chunks being, on one hand, focus on the core brands Husqvarna, Gardena. It was about focus on the leadership positions, which are quite some few in this group. And we talked about professional handheld, we talked about robotics, we talked about the mobile watering, we talked about parts and accessories. So that was one chunk. Very important for us to drive the sales of that, not really asking the question what are we selling about product X, but rather asking the question about what are we selling in these areas, tell me. The rest will end up being whatever it will, but this is where we want to see the improvement. This is the focus. The other bucket which was usually important was the cost out and direct material cost. And we actually took and allocated resources to a larger degree to work with the cost reductions. Of course, the suppliers are usually important for us. We're talking about some 40% plus of the P and L here that sits with purchase components. So you can see that we were aiming to get out about 10% reduction of that. And I would say by and large, we actually did that. The third one, which is more intangible, is the complexity reduction. And the starting point is we are a great innovation company. The great innovation companies have a tendency to be better to phase in products than to phase out old products. So we were looking at both the platforms and SKUs, the stock keeping units, and we took out more than 30% of the SKUs in this period of time. The exact contribution of that, I can't say, but it's positive. It supports everything from the amounts of suppliers we interact with, the amount of quality assurance we need to do on the incoming goods, the fixtures we need in the production, material planning complexity, all the way to pamphlets of products in the market. You realize this is cutting across the whole company, but it's extremely difficult to put the hands around exactly a quantification of what that will bring. But it's a good thing. It's like lead time in the manufacturing. It's a good thing to reduce that exactly what that means, that's a hard one to spell out. So what results did we achieve? Well, we have used this some few times. This looks at the EBIT improvement. We started with SEK1.5 billion quarter 3 that was rolling 12 months. And now we're up a bit above SEK3 billion, so we have doubled in this period of time. Margin wise, 8.6% reported. So I think that is a great achievement. Still, we would have liked that to be 10% as you will remember. Jan will comment a bit around that later. Important to be aware of the focus we created through the Accelerated Improvement Program definitely was one of the key success factors why we could execute so strongly on it. So you could say the focus creates the conditions for a successful journey strategy. We worked through the winter of 2013 to 2014 with the strategic questions. We actually took the consequence of that in the spring of 'fourteen, in the Board at least and discussed about the requirements for a different structure to go forward. And let me come to that soon. Let me first state that a company that has a heritage of 325, right now, 327 years needs a proud kind of ambition. And we said we cannot really leave it with anything else than market leadership where we choose to play. With all assets, with the heritage we have, we want to be the market leader where we play. That was how we define it. We say, the way we see that is we can be number 1, we can be number 2, but then competing for the number one position. The way we see it is that we need to be an innovation leader to be credible to be a market leader over time. And we also see as a consequence of those things, you are supposed to outperform your competitors in terms of growth and profitability. It's just a logical consequence of the other two things if you do it right. So that was the definition we took on and that we have worked with since then. But the more we work through the strategy process, the more we realize that one of the reasons why we probably underperformed was in the structure of our operations. We have a huge breadth and we didn't find the right combination of combining that breadth with the right focus. And when we talked about breadth, we talked about the different customer segments, everything from the professionals to the passionate gardeners to the mass consumer segments. We talked about the channels to the market. We talked about the portfolio brands and we talked about the categories of products. So all those created a lot of tension and we tried to respond to that with 1 Husqvarna and that actually wasn't successful. The proofs show that. So we took a different stance. We say let's look at the end customer segmentation here. Let's try to be customer centric and when we try to remodel for future success. So we took the end customer segments as the starting point and then we discussed about how do we meet those in the best way. And we concluded the brand and the brand promise is the best way to meet them. So that became the differentiated business models that we actually applied for those the way to respond to those different customer expectations. In but also the resource allocation and the whole structure as such. So the full responsibility, profit and loss balance sheet allocated into these divisions. And what we were looking for was actually these things. Hard for you to see there, but we were writing at the time, this is from 2014 CMV, focus, speed, drive, energy. And we had our own benchmark at that time. We had the construction division, which actually was formed in this way, was a global P and L. And we saw all those things, all those characteristics in the construction division. So we really wanted to sort out the forest and garden space along those lines. So where are we right now? I would say, we have the proof of concept. We are really actually seeing what we hoped and expected, which is we have a much sharper business focus. We have a higher energy in the company in the forest and garden space and we have a lot more decision power and speed. Makes a lot more fun for the people to work in this setup. So I can say without any hesitation, this is a success. But we have also maintained because the backside, the flipside of that, somebody can sit and think, I can imagine at least, okay, you got that, but you probably lost something. What about the scale and the synergies? I will say we have maintained all the vital synergies and scale advantages we need. We have given up on the Pareto, if you think about the Pareto, the largest synergies and scale advantage this year and then diminishing down to something that become a very long tail, that's very inefficient to chase. You will end up spending too much energy to chase those synergies. It will not pay off. You better concentrate on the big things that makes the difference and we maintain those. Talking about technology, of course, we keep our hands around technology and the last example of that I think is the Mecalow robotics lawnmover that's standing here, which is about to be introduced for next season. Of course, we want to capitalize on the knowledge and the know how in the group of robotics movers as one example and put that also into the consumer space. There are many other examples of technology. You can imagine 2 stroke technology and battery technology, etcetera. IP, not to mention IP. Sourcing, we still maintain a sourcing program that we call X Sight for the top 100, 150 supplies, still encompassing about almost 70% of our spend. And that now to give you a proportion, 100, 150 out of 2,000 in total. So we do the right things when it comes to the things that's going to make the difference, but we leave the rest. Brand portfolio, of course, needs to be viewed from the total market opportunity point of view. If you go to examples like online platforms, should we invest in clever. So we try to utilize those type of synergies where we see them. Those are some examples. So we actually feel very confident that we have managed to find a good balance of the ownership, accountability to get the right energy, decision, power and speed with maintaining the vital few synergies. So on a piece of paper and or many consultants are over believers of the amount of synergies you can capture. In reality, you better do the things that makes difference and work with these other elements that we talked about because they we are convinced at least are going to make a much larger difference. But it's not only about those things, it's also about how do you build consistency and how do you I mean people are driven by a course. When we wake up in the morning, when we work long hours like many people do, what is it that make us do those things? It's not necessarily the financial targets. Maybe Jan is more powered by that. I might be as well, but to be honest, I think there are other things that help us with the motivation. And those things you need to capture and help people to see. And then you need to talk about what's your core purpose, what we're doing. What is it that we have been doing that is part of our success, the DNA of the company, so to say, which is becoming popular to talk about and that we will continue doing. How does our vision look like, the aspiration we have for the future? How do we want to behave versus each other? That is more important given the history we have and where we are right now. I think these things shouldn't be underestimated. It's not necessarily anything I bring up at each quarterly report, but I think an occasion like this, I want to mention it because it makes a difference. So it's really about building consistency, and we have done that. Okay. So where are we right now on this journey? Well, we are in the midst of the execution of the business plans that the division were starting to work on during the fall of 'fourteen that they launched for 'fifteen and now that they are pressing on with. And actually this is profitable growth. We just wanted to work with those things for some period of time. We wanted to formulate those plans and create those initiatives and be in pace with the release of our building, I should say, the financial power to fund those initiatives because if you're going to build profitable growth, you also need to inject energy and that's equal to capital to a large extent. Costs, and we're doing that. I'll come back to the acceleration initiatives soon. But let me move out a bit now because I talked about the journey here and let us look a little bit at the market, so we don't lose sight of that here in this discussion. Well, the market as we define it is altogether with the construction site here at 210,000,000,000 dollars growth 2% to 3 percent segments with high profitable growth potential, but also segments of lower potential, in different categories and sub segments here. There's a high share of professional customers. There's a good opportunity to work with performance. There is a good opportunity for aftermarket sales. Innovation is rewarded, which is a good thing. From a distribution point of view, yes, multichannel is becoming more and more visible. We have a dealer base, which is very important for this group. You will hear more about that a bit later. And also the forest and garden categories are important for the big box retailers. So we are at least an important factor for these guys. We see a lot of consolidated strong competitors, particularly Europeans, Americans like Stihl, Toro, Deere. I guess we can also manage companies like MTD, Bosch. We also see agents coming up on the lower segments like Works, IOBY. But scale is important in this business. So if you look at it with the distinction of forest and garden on one hand and then construction on the other, forest and garden, we assess 2015 to have been around SEK 185,000,000,000 and the growth 2% to 3% over a longer period of time, very much in line actually with GDP. If you look at the regional split, Americas is the largest market, a little bit more than half. And EMEA is also substantial. APAC is still not that large in the overall scheme of things. This looks a bit different if you look at the construction, but you will hear more about that from Henrik later. That market is SEK 25,000,000,000 and maybe on a little bit higher growth impact. So if you look at the trends then, what's going on in the market that's affecting us and will affect us going forward, well, I don't think any of those pieces of information is actually going to surprise you that much. We see a lot about battery technology. We see, of course, digitization. We see the big data coming in. We see the Internet of Things taking part. We see new consumer groups emerging. Urbanization, big thing in the global scheme of things here and the change of economic gravity towards the Asian side. Changing customer values and purchasing behavior, yes, we have new customer growth, young particularly younger ones, which are very heavy into social media, expects omni channels, much more open to rent share, maybe wants to identify with brands beyond product features and look at more of the company. Obviously, environmental aspects is becoming more of an issue for all of us, shortage of resources, all these things will affect our industry one way or the other going forward. But then profitable growth then, which is the next phase, just being at the turning point between those arrows, as I mentioned. So how does it look like? If you look at the 3 divisions now that we described being in profitable growth Husqvarna, Gardena and Construction, We have had 2.5% CAGR in this period of 11% to 15% and that's currency adjusted. The way we look then on this is we have the growth ambition of being 1 to 2 percentage points ahead of the market. If we assume the market then moves with 2 to 3, that brings us to 3 to 5 percentage points. And we have achieved 2.5%. So you can see, yes, there is ambition, but we are still realistic given that we also will need to battle segments with lower growth. It's not all rosy. Some parts are less, let's say, inspiring. So that's the way we see it actually with the growth development in this phase. And these are the highlights of the various divisions. I don't want to steal that thunder. I just want to leave you with a visual impression here that it's quite an array of things and you can also get a sense for if this would be one group, it's not an easy thing to execute with success on all those things at the same time. But now each and every one of those areas, they have initiatives, activities, they have support in various degrees of resources. So it's not nice things on the slide. It's something we have been working with for some period of time now and that we start to expect yield results. Husqvarna very much about the pro prosumer focus Gardena about the passion and growth agenda and the Smart Garden consumer space, building on the profitable core and construction working and pressing on being the preferred choice of their customers. I think that's the true highlight of the day. Now just to give you a feel for what I'm saying here, it's not quantified, but it gives an idea of how we see it. Last year result EBIT wise was around 3,000,000,000 We talked about the FX headwind sufficiently, I think, just quantify. We talked about it as something beyond between SEK 450,000,000 to SEK 500,000,000. And then we have the orange box, which is cost for profitable growth initiatives. So that's additional costs we are taking to support those strategic initiatives. And then we have the further efficiency measures. And I mentioned that we are in a program form internally running that. And we're talking about continued direct material cost out. We're talking about the indirect material costs. We're talking about logistics. We're talking about rightsizing our footprints, SG and A efficiency and capital efficiency. All those things are ongoing in the same fashion as we used to do them with the AIP. And that's to create the strength to be able to do these things. So it's quite heavy lifting still coming as an improvement from that piece then beyond what is attributable to volume, mix, price, etcetera. And you know the story about this year moving along sideways and then with the improvement momentum, are a bit more upbeat about next year. But I think this is a very important piece here. This is the way how we create the muscle to invest. Okay. Given the ambitions we have about market leadership, given that the strategy process we were running was end of 2013, spring of 2014, things happen around you. And we felt that we needed to reinforce some of these areas even further than what we had in our plan. So we said let's find acceleration initiatives here that relate to sustainability, battery based products and digitization. And I'll just quickly take you through how we see that. First of all, sustainability. Actually, it's hard to say that a sustainable market leader can be anything else than also a leader one or the other way in sustainability. We don't trust we don't believe that's possible. We spent quite some energy on this in the management team and discussed it. And the conclusion is we are signing up to the green path, the COP21, Paris, the scientific based targets ambitions of how do you actually need to reduce in order to take your fair share, the green path. And we are taking on that commitment. It's a huge commitment and we also will discuss about the process for scientific based targets. We haven't finalized anything, but we're in that dialogue. That's to show that we take this series. It's not going to be a half cooked type of case. We need to do this with continuous improvement, but we also need innovation to make this happen. And we need to take it from what historically might have been good examples and a bit of cosmetic efforts by some other people to something that is integrated to the business strategy and the way we actually act. Different targets where, of course, the carbon target is the crucial one from a global perspective here. We're glad to talk more about that, more specifics if there are questions afterwards, but something we take quite serious going forward. We think this can really help us a lot also to do the right things. And I mean, we have good examples. I don't know, Pavel, if you intend to talk about your new saw chain factory, 0 emissions. There are other things we can choose to bring up as examples. Digital, I was facing the question here, should I talk about the birds in the woods, so to say or what we have in the hand and I ended up with the things we have in the hand. We are accelerating our efforts in this area, trust me. But these are examples of what we have been doing and there are still early days of what will come, but still tangible. I mean, if you say the connect smart connect to the auto movers, if you say fleet management that you will have a demonstration of during launch, if you say something that Sascha will talk more about as the Smart Garden, many of those things are starting to come to the market. We have also built capabilities, the assets on small technology acquisitions, but we have built back end capability to be able to execute on these things and we have formed partnerships for So this is something where we put a lot of energy and you see examples of it later. I think the best example Sascha has with the Smart Garden connecting automated watering and robotics, I think is a fantastic start to what all people living in a house dreams about when they have been on vacation. Battery. We view increasingly robotics and battery as one whole because they share a lot of the characteristics actually, one being the growth. Growth here is well above 20% in this area of the market. It still is not that huge in the €185,000,000,000 Forest and Garden reference. Let's say it's 5%, 6%. Our share of that is almost twice that number of our revenues. So we are utilizing the opportunity in the petrol to battery shift. And we are determined to be equally attractive with battery based products as with petrol based products. I think you will recognize that having the heritage from the petrol, this is a mindset change that we have worked on quite hard to get everybody to buy into and be equally glad to sell a battery based product as a petrol based product depending on the customer need. The way we've done it is that we have used the application know how. We have started with a high performance and then we will stepwise move into the more higher volume segments when it comes to the handheld equipment, to give one example. Robotics, you're well aware that we are at the forefront. We are the market leader. We were the innovator of the category 20 years ago. We are by far the market leader. And the fact that we now have a 3rd brand with robotics mover for 17 Seas and McCullough is just logical because that customer segment is emerging. So it's just another way to show the determination of a market leadership ambition. We want to have a response, product response to all the major customer segments and demands in that area. We also released the information this morning that we are starting up a second production unit in Peperno in Czechia in parallel to the existing manufacturing unit in the U. K. And that is from the 2018 season onwards. So take the chance later to look at these nice things and maybe Jeff will talk about it. Good. I think that's most important. The most important is, yes, there is an emergence of battery based products that is strong. We are positioned to take part of that and not to lose out of it. But it also includes again buildup of resources and accelerated introduction launch plan of products going ahead. So there's a lot coming to the market, but the fact of it is and you will have the chance to see that we have already today benchmark products in terms of performance since a couple of years. So it is happening. Good. Rounding up a little bit. You have heard me talking about that we have delivered. You have heard me talking about we have the proof of concept, the empowered organization. You have heard me talking about the profitable growth phase and that we are moving into, which is really exciting and the fact that we are accelerating now the innovation going ahead. So changing the phase, and this is my last page before I leave to Jan. Changing the phase here and the focus moving more to growth, we thought it was and the Board thought it was logical to also reflect that in the financial targets. So we maintain the margin target in the way that growth, of course, should create value. So that remains as a target margin wise. And we have then growth as a target, you heard me talking about growing quicker than the market we wanted to percentage point. But it's also then getting into growth, becoming more important of the capital efficiency, how do we grow with capital efficiency. With those comments, I leave it to Jan to be more explicit about it. Thank you, Kai. Okay, sorry for the voice. I will try to do my best. When I started to work after the university, there was a big poster in my in the office landscape stating the difference between a dream and a plan and a target is a plan. And when we are now establishing new targets, we have the plans to support that new financial targets for Husqvarna Group in the coming years. And you will hear more of these plans when we are listening to the different divisions making their presentations. And with 3 out of 4 divisions now in a profitable growth phase and substantially above the 10% EBIT margin, it is time for us to shift focus as a group. And the definition of profitable growth for us is to have over industry average EBIT margin and growth and to do this in a capital efficient way. So the margin, the growth and the capital efficiencies are the cornerstones in our financial targets. But before we enter into the new financial targets, let us make a short recapture of what we had as financial targets from the Capital Markets Day in 2014 and up until including this year as well. The financial targets should reflect the situation and the perspectives of the company. For Husqvarna Group, the task the last years has been to restore profit margin and to come back to double digit EBIT margin that the group had pre-two thousand and eight. And at the same time, have a financial profile and position of an investment grade company. With the strong market position that the Husqvarna Group has and also with the brands we have, these are reasonable targets and financial performance and position for such a company. So the financial targets were and still are up until the end of this year, a dividend of at least 40% of previous year's net income and then a net debt to EBITDA that should be below 2.5% seasonally adjusted, both these targets reflecting then ambition of an investment grade rated company and also an ambition or an EBIT market target of above 10% over business cycle. If we take a look on where we are and where we will end, this year, we can say that the dividend, the dividend per share has been substantially above 40% of the earnings per share the previous year, and we have been below or substantially below 2.5% on net debt to EBITDA the last years. But the EBIT margin has not been 10% during the last year, even though the targets as such was put as over a business cycle, we had put up a short term target for ourselves that we should reach 10% EBIT margin in 2016, reflecting then the full effect of the closing of the AIP program that was closed in 2015. Conclusion, 2 of our 3 targets reached, and we are, of course, not satisfied with not reaching 10% of EBIT margin. But if we just reflect just a moment on that target and where we are, We can say, as I said, that from an activity point of view, the ARP program that we launched in 2013 has delivered, and we are happy with the activities and also that we have been able to deliver substantial EBIT improvements. But from a margin point of view, it has not really been enough. So on one side, how can we say that we are happy from an activity point of view, but we are unhappy from a margin development point of view? Well and why was everything sort of on track, '14, 'fifteen, but has leveled out now in 'sixteen? Well, first of all, we have to understand that Husqvarna is very dependent upon certain currencies. For us then, U. S. Dollar as regard net sales is a big part of the top line. And if you remember in late 2014, beginning of 2015, we saw substantial strengthening of the U. S. Dollar in relation to all currencies more or less. And as a consequence, compared to 2014, we got an improvement of the net sales just from currency of SEK 3,500,000,000 where SEK 3,100,000,000 was related to the strength in dollar. For Husqvarna, the relationship of dollar is important from top line, but it's also very important for how it's affecting the EBIT and especially the relationship between the dollar and the euro. We have a substantial net outflow in dollars despite the big net sales. And the reason is, of course, that we have a big footprint, manufacturing footprint, especially related to our lawn mowers in North America. And those products are exported mainly into Europe and mainly into Euro land. So whereas we got an inflated net sales, we got the drag on the EBIT due to the transaction exposure we have. With the headwind policy we have, we are postponing the transaction exposures between 6 to 12 months. So this means that from an EBIT point of view, we were affected mainly in 2016. Kai mentioned a EUR 450,000,000 to EUR 475,000,000 negative impact that we expect for the full year this year, where of EUR 350,000,000 already has hit us in the first half. So from an exposure and volatility point of view, this is not an ideal situation, but it's our reality. This is how it is. And we are slowly taking steps to actually move away from this by reducing the outflow in dollars, by trying to move away from purchasing in dollars and also, of course, being able to improve our U. S. Dollar sales and margins. But the high dependency will continue to be there for the coming years and especially as it relates to Europe, we will have a a big inflow of euros. So if we just make an adjustment not on EBIT, but only on the top line for 'sixteen with the effect of the dollar. We can see that we would have been close to 10%. But this is an explanation, not an excuse. It is what it is. We didn't make it to 10%. And the currency dependency is one of the characteristics of Husqvarna. Another characteristic is, of course, also our seasonality, reflecting our market footprint, where we are selling some 90% in our Northern Hemisphere. The good thing with the seasonality is that it's 100% predictable. The lawn and garden products, our main part of the business are invoiced to our dealers, distributors and retailers in the first and in the second quarter, whereas the sales of forest products are mainly happening in the 3rd and in the 4th quarter. And they are, of course, then weaker than in the lawn and garden season. Construction, more evenly spread over the year, even though that the winter is somewhat lower activity in general in the construction segment and thereby impacting us as well. This sales pattern is, of course, also reflected in the EBIT pattern. The cash flow actually follow the same logics as inventory for the coming season is gradually being built up during the Q4, especially in the Q1, sold being accounts receivables in the second and Q3 and also payments during these quarters. The seasonality is fully predictable, but the weather is the unknown and can to some degree smoothen or amplify these seasonality patterns we have. Unfavorable weather during high sales period will, of course, affect our EBIT, but also the fact that we will carry more inventory into the 3rd Q4, which is then reflected in the prebuild in the Q4 for the coming season. The risk of obsolescence for the products, they are limited due to the fact that it's more it's not like cars or anything like that. It's not model changes in that way. So it can be solved the coming season as well. So it's more of a cash flow problem. Furthermore, there exists what we can call embedded weather hedges. What do I mean by that? Yes, it's also between division and segments. For example, where we had last year the warm and dry weather in Central Europe in Q3, very positive for watering products and the Gardena division, on the other hand, negative for Husqvarna division as regard lawn mover sales. And surprisingly often, when we have a strong and cold winter in U. S, we have a warmer weather in winter in Europe. So leaving that and moving over, so to say, to the next step, we now shift, as Kai said, the focus from restoring profit to go to profitable growth to support market leadership 2020. And by doing that, we also need new financial targets, supporting the ambition of over industry average EBIT margins and growth in a capital efficient way. And this will, of course, also continued provide for continued momentum as regard operating income and cash generation the coming years because in the end, this is about money. The new financial targets for the coming years are an EBIT margin equal to or over 10%, which is similar as the earlier target, but the coming years, not over a business cycle. And organic growth of net sales of 1% to 2% over the underlying market. And when I say over the underlying market, the market we are calculating with being underlying is to 2% to 3%, reflecting the GDP in the markets where we play. So as a consequence, the range is between 3% to 5%. Of compounded average growth rates, CAGR and currency adjusted as well. And thirdly, the capital efficient target is then a net operating working capital in relation to net sales target, where net operating working capital is the inventory plus the accounts receivable minus the accounts payables. Those three targets are average number, season adjusted over the coming years. And when we say over the coming years, we are instinctively thinking 3 years. But we also know that the relevance of these targets could be also for 2 or for 4 years. These targets are valid as from 2017. So the full year 2017 is the 1st full year we will actually have the summary of where we are compared to these targets. They are group targets with the exception of the growth target, which is valid for the 3 divisions in profitable growth, whereas the focus of Consumer division will continue to be to get to a breakeven as soon as possible and to the 5% 2015. So you can say that they are still in the restoring profit phase. They are these three targets are relative numbers. But in the end, we must also understand that this is about improving earnings in money, cash flow in money and thereby also shareholder value. To assess a little probability behind and the probability to reach these targets and the development, you can take a look on where we are and where we have been in the past. We have already explored the EBIT margin, a crucial part, of course, to reach this 10% or more. I mean, 10% is definitely not a ceiling. It's a floor where we should start. We should understand that we are at 8.6%. So it's a thing to just go up to the 10%. But 10%, as I said, is not the ceiling for us. It's the starting point for these coming years. To be able to do that, we need to get to the turnaround in Consumer Division and to get to the 5%. It is a crucial part of this. It also has to be balanced, of course, these targets, EBIT margin and growth and find the best mix for us as relate operating income because in the end, as I said, it's about making money. So if this will mean that we will get to 11%, 12%, 13%, I do not know because it's a balance between growth and the margin assets. And there are, of course, no there is no contradiction between growth and margin. Normally, they come together if it's done in a clever way. But putting out the 10% is also important for us internally, but it states for us that this is the floor. This is the decent level we expect not to be under when we are performing our business. The growth target, then the net sales improvement in local currency will, of course, also be very important to grow our EBIT in the nominal terms and our cash flow. This is the case for the 3 divisions in profitable growth and consumer brand has growth in their plans, as you will see, but it's not necessarily a growth plan for 2017 2018. It is an EBIT and profit plan. With the total underlying market of 2% to 3%, 1% to 2% taking market share every year, it's not an easy task. And I have not seen any of our competitors have targets of decreasing their market share. So of course, this is not a walk in the park. Because we are talking about mature market with well established competitors, with well established positions, and this means that we have to bring improved products and improved services to the market and be better as an organization to respond new organizational structure and the traction we have there and also the growth initiatives and ambitions we have already provided for and taken cost for or that are in the pipeline. And as you can see, the last years, 5 years, we have been able to get 2.5% of CAGR in these three divisions together. And to state the obvious, 5% is not the ceiling. It is we will take whatever market share or whatever volume we can to provide for better cash flow and a better EBIT margin and EBIT as such. To be able to secure improved cash generation, while at the same time growing net sales, there is a need to focus on capital efficiency. Whereas the working capitals are many small decisions out in the operations on a day to day basis, the fixed assets and the development of that is more step by changes when we talk about acquisition, structure changes, divestments, etcetera. As the plans we have for the coming years that forms the base for these targets are organic plans. Fixed assets are forecasted to be relatively stable over the coming years. The focus for the group due to that will be to reduce its net operating working capital in relation to sales, I. E, to become more working capital efficient. And as I said before, net for us, net operating working capital is the inventory plus receivables minus the payables. Where we are right now is that we have in amounts seasonally adjusted rolling 12 months around or slightly under SEK 10,000,000,000 of net operating working capital, and we are at close to 27% of net sales. To reduce this with 10% more or less will then mean that we will be under the 25% of target of net sales and that we will be able to release SEK 1,000,000,000 or close to SEK 1,000,000,000 to provide for the growth or to be dividend out to the shareholders if it's not needed. And to be able to improve the work with net operating working capital, we as organization must focus more on eliminating waste in our flows and in our structure and in our logistic flows because this is a big part related to our inventory, which stands for a substantial part of the net operating working capital. But also how we pay and how we get paid are crucial parts to reaching the capital efficiency target. So to sum up, I stated in the beginning that the difference between a dream and a target is a plan. We have the plans to enter into profitable growth phase. And we outlined that already back in 2014 that this was the time. This will bring us to 2020 market leadership. And we define profitable growth as having over industry average EBIT margin and growth and to do this in a capital efficient way. Delivering on these 3 financial targets the coming years, as from 2017, we will provide us then to deliver profitable growth to the shareholders and all stakeholders. So by that, Kai, I ask you up on the stage to take some questions, and hopefully, we can provide some answers. So questions, please. Chevreux. Just a question about this 10% margin targets. You've obviously had it for a while. Now 3 of the divisions are above that one and one is below and that one has a 5% margin target. So who is actually this 10% margin target for? It looks a bit unambitious for the already very profitable divisions. Do they have other targets internally? I think you hopefully listen to my definition of the profitable growth. Continuous improvement of the EBIT margin in parallel to the market growth definition, so to say. I think those 2 go hand in hand. But we are not explicit about saying Husqvarna should reach 15% or Gardena etcetera. I mean those type of levels we haven't communicated. We do have those as you will realize, but we don't go externally with that. Okay. Thank you. And the target is not 10%. It is the floor is 10% for the group. Anders Schulz, Sverdrup Bank. What is your target for consumer brands coming to growth as you've excluded them from the group target? It's not the primary objective. The primary objective in the Phase 3 is a profitability improvement. It will encompass also a net sales growth component. You will see that a little bit later, but it's not the primary target as such. Okay. Yes. Hi. Rasmus Zeng by Handelsbanken. Hi. Here. Yes. I was just curious as to who do you actually benchmark to when you say you're going to have better growth and margins? We, of course, do our market assessments of the whole parts and garden space just like the construction space. We do that quite diligently, and it's a triangulation of various data, countries, industry associations, our own assessments and knowledge. So it's actually a triangulation exercise that is fairly accurate. So we have that data. Publicly, of course, we can rather refer to OPEI and other things. But I think we have a fair good understanding of that, also including the competitor profitability in fact. And what type of profitability do you think on average that your peers have right now more or less? You would then need to go into the divisional type of space to make that relevant. I mean, you will find the benchmarks in the Husqvarna space, surely to be Toro and steel. And I think we are performing okay. We can do even better. But it's in line with those people. We're not outpacing them, so to say. I wouldn't put it formulated as we are over delivering on the profitability versus the benchmarks like that example. Bjorn Enarson, Danske Bank. A question on the outgrowth target of growing 1%, 2% more. Is that simply selling more products or the same products or is it more in terms of value that you are more shifting into different products or selling more of the products you want? 1st of all, it's value. We're talking value, not volume. That's what we talk about. But it's you will hear. I think the best is actually to come back to that question after listening to the divisional presentations because it is going to be driven of course by selective categories for select customer segments. So there is a target here. So the little you could say the methodology that we applied in AIP to go with the leadership areas is applicable for the various divisions. That means different things for all of them. Then I'll stay for the day. That's good, yes. Then on the 10% EBIT margin target, it's not for each and every year, it's still an average for the 2 to 4 year point period? Average over the coming years. And as I said, we think mentally 3 years, but you're right, it could be 2 to 3 years 2 to 4 years as well, depending on what's happening. And do you have a view on next year already now as it is quite a big leap from where we'll end up this year? I would say there's nothing new as to 'seventeen as to how we've communicated before. And the thing we have said is we expect to reach the 10% margin target in 2017, latest 2018. That's how we formulated. That still holds. So that doesn't change. No. It's a consequence. And you can say then, Kai, that is also more or less continuing the journey we have had if we exclude the €450,000,000 to €475,000,000 of currency. That could, of course, help us if it goes the other way around. But I mean, it is what it is and we have to handle that. So we have a good underlying momentum of operating income improvement and that we expect to continue. Thank you. Thank you for the presentation. Natalia Falcmann from Carnegie. I have a question on Consumer Brands. It was a quite weak quarter volume wise in the Q2. Could you share with us how you look when you're going to bottom volume wise and sales wise in consumer brands? I could share that right now, but I would urge you for some patience because Jaf Holry is going to talk about that and give some information in his presentation. So I'd rather leave the thunder for him too, if that's okay, Nathalie. That's very good. And then a question on battery and electrical driven products. Do you need another push in R and D to promote and develop and innovate within this area? The answer is yes. And we are undertaking that. We are bringing in new people to support the buildup of the resources. They're quite accelerate the product launch plans. So that's an important component. But it's also equally important to build a moment in the sales channel to be as convinced to sell these products as the traditional products and not only in with our resources, but equally on the dealer side, they also need to be convinced. But the good thing is everybody who has tested these type of products, they are super impressed. And I'm not exaggerating saying that. I mean, I'm a frequent user myself and some of you probably are. And you will know that it's so convenient to work with those trimmers and other types of products. So it is a fantastic product category and we do have very strong product and we will accelerate launches to the market in the next coming years and that requires people. One remark, this does not mean that we take from petrol and put into battery. So we have great plans also on the petrol side. So of course, this will mean more R and D. Yes, that's a good point. And just last question on that. How much will you produce in house and how much will be more of assembly type of products compared to your current ones? And then added value will be lower on the battery. But just for you to understand, it's more of a horizontal model where we specify we might design. Just to give an example of the most high performance brushless DC motor we have in use, We do the design. We let somebody else produce it. So you will see these type of cases and the definition of what's, so to say, the core competence is a little bit different on that side than you will have on the petrol where we do everything from the casted magnesium, aluminum, etcetera. We will be a bit more cautious here, a little bit more moving to be the ones who designs, specifies things and others will probably produce to a larger extent. But over time, we will be very clear about which is the core competencies and capabilities we need to have to be competitive in this space. Costing concrete yet. Pietro Agler from Landau. Just a question about the profit margin targets. If you have the 10% target being that should be reached this year, besides the currency movements, what are the main reasons in your view that you actually haven't reached it yet? Well, actually it was for the full year of 'sixteen. We are not there yet. That's number 1. But let's be honest and say, we I think and Jeff is not offended by that. The season, the peak months of the season, actually the weather was very poor in North America and that has been a huge volume drop. As a result of that, the sell through in the retail area has not been according to expectations and hence, they are not replenishing in the way we expected. And with that situation, that's probably one of the key things that mixes into this as well. There are other small bits and pieces, but actually I think I want to put you back into where we were. We were at 5% and we were putting up this very ambitious target of doubling the margin to 10% in 3 years. That was maybe too ambitious also. So I'm feeling really good about what we have achieved versus what we were setting up from an activity point of view. So we were carrying through the activities that we were setting out, but maybe it was optimistic to some degree. Rather being ambitious and a little bit too much tension than the opposite and be sure that that mentality is still in this management team. The will to show and demonstrate a good record going forward is there. I can reassure you that. Vincent Bojon from Zadig Asset Management. On battery powered, If you exclude robotics, how much of your business is in battery powered? I wouldn't talk specifically because we will become very detailed and I like to rather aggregate it. And that's why I say the robotics and the battery base together is about 10 give and take 10% of our forest and garden revenues if you relate to that. And from a margin mix standpoint, if I exclude robotics, which I understand is a good contributor, is the fact that the battery powered tools are drag on your margins overall or how does it compare? No, I wouldn't say that at this point in time. So it's margin neutral? I would say, yes. If to give you a rough indication, yes, I would say so. Okay. Thank you. Of course, I mean, let's talk about a bit more though. What's happening here is that we have a whole bunch of actors entering the outdoor power equipment space. All the power hand tool actors principally, you have the Bosch, you have the Makitas, you have Hitachi, you have Standard Black and Decker, the Walt, etcetera. All these people are trying to utilize their technology and put them into applications of the outdoor power equipment. So that reasonably will have some implication and we better move quick in order not to get into a margin dilution type of situation. So we are under pressure. I think it's fair to share with you to be successful here. We cannot really sit on it for too long. We better move fast. Coming back to the margin growth discussion, that does not mean that we are running we are avoiding these products because they are increasing our operating income. So of course, when we talk about margin and growth, we have to take a look on the money, not only on the percentages. Christian Meinengold from DNB. You talked about market growth of 2% to 3%, but your high growth areas handheld batteries and also robotics. What kind of growth do you see for the market for the next 4 years for that over those categories? For robotics and battery handling? Yes, okay. Actually, I would it's a gut feeling. It's not fact based. But I would say I expect them to remain very high in that region, about 20% for the until the period of 2020, I would say that's a reasonable expectation. Yes. Rasmus with Handelsbanken again. With regards to your underlying improvement this year of, is it around SEK 600,000,000 or so on EBIT, how much of that is sort of passing through the negative FX or is that not a thing at all? I mean, given what's real underlying improvement in EBIT? I don't really understand the question. Kai had a good slide here, 'fifteen to 'sixteen, where we saw the drag on FX, we saw the ambitions, the growth initiatives and we saw the both the cost side, the further efficiency improvement, but also volume mix, etcetera, being more or less on the same level. I think that's a good explanation and also the size of them was quite in line with what they are in reality. To balance those two elements of the currency and the increased costs for the strategic initiatives. There's a major piece here, of course, coming from the further efficiency measures contributing. And that pace, we do expect to carry with us into 2017 because we as I mentioned, we run the program over 2 years 'sixteen, 'seventeen. Even though we don't talk about the external asset program, we treat it as and the reason why we don't talk about the external asset program, we don't want to reveal all the details because then we would end up with divisional views of and that would be very beneficial for our competitors, not necessarily for us. So that but the answer is you have that type of factor of improvement, if that is Rasmej, by the way. Can we repeat it? Yes. Just trying to understand whether a part of this improvement actually is that you've managed to pass through these negative FX effects or not? Or is it actually an underlying rate? That's my question. To a minor extent, we have, especially when we have flows from dollar into euros, where we have competitors in the same situation. Of course, this is a timing question. Everyone will increase prices sooner or later, and we have done that to be able to offset some of that. But that is sort of the minor part. The rest we have to say eaten on the margin because we have competitors that have not the same footprint as we have. Yes. Hi, Johan and Liaison again. A question about growth. I think Johan mentioned sort of organic going forward. Is that the sole focus today? I guess you might do some of these minor technology acquisitions you've done recently. The balance sheet is starting to look fairly okay? If I start, I mean, the profitable growth strategy that you will hear a lot more about in the details is organic, but we are not excluding acquisitions. But the base of it is organic. From a landscape point of view, it's more fragmented in the construction space than it is in, for example, the Husqvarna space or to give one example. So from that point of view, there are some areas that could be more, let's say, likely to materialize. But I want to be clear, we have not worked over any longer period of time to have a huge pipeline of targets. So that's why we are cautious communicating about where we are definitely open for it. We have the strength to deal with it. We have the capability, I would say, in the management team to deal with it. And we will take whatever opportunity we think really fits the strategy, but we will be picky. And then the organic growth, obviously, we hear about robotics, handheld, battery, house. Adjacent segments like golf, is that sort of the agenda or anything in those directions? You mean lawn mowers for golf course? Actually, and Pavel could make a story about that later that there are commercial applications for golf courses and other locations. And these will probably expand as we move ahead. I think that's a reasonable expectation. Organically then I take it. Well, the plants are organic, but also I mean we have the plants and M and A will be also to make a leapfrog in those plans to reach the point quicker, but it could also be adjacent segments. So that is how we view the M and A plan. But I mean, this is organic and this is what we have been working with. But do we find that adjacent robotics technology to support as Jan alludes to, we will naturally be open for that and interested in Okay. Thank you, Kai. Thank you, Jan. And let's break for some 15 minutes of coffee. I'm an early riser. Always happen. Love the quiet hours before it all starts. A hot cup of coffee before the morning light comes yawning over the treetops like it wants to join me for a refill. This is my office, a temple of 100 foot high, 100 year old trees, And a field that stretches for miles and miles, doesn't end till long after the day does, and I wouldn't change it for anything. Every day, it's the same. Anything can happen. When everything comes together, you trust yourself, trust your equipment, trust your team. You get that right, and you'll come to love what you do. Some people watch weather reports. I just watch the weather. Sun, rain, fog, snow, fresh cut grass, leaves, and sap, it just fills your senses. Time to call it a day. See you tomorrow So good morning, ladies and gentlemen. Pleasure to have you all here, and welcome to the world of the professionals through this film and in this store. I will guide you through the Husqvarna division, where we stand, where are our plans and let me start out by having these pictures saying a little bit about our current status. We have a very strong position in the market today. Global presence well over 40 countries, most of those with our own people. Very strong brand recognition for the Husqvarna brand and a very broad portfolio of products stretching all from handheld over to wheeled over to the modern battery and robotic products. Also, we have a financially strong and sound position with a good underlying sales growth as well as with a good underlying EBIT development. And in addition to that, we also have a very dedicated team of people who now have, so to say, a clear direction and a clear focus on the Husqvarna brand. What we have done during the last 2 years since the inception of the division is to form our strategy. The strategic initiatives that we have identified are 6. Those are the ones that we believe will bring us to the profitable growth going forward. This is mainly about this is mainly about focusing on the dealer development. This is mainly about focusing on commercial lawn and garden. This is about focusing on parts and accessories. This is about expanding our robotics presence and also expanding our battery presence. And this is also about expanding our presence in the emerging markets. Having that focus very clear, having that direction very clear for the division, focusing on the professionals and the prosumers, we believe that we are well set for a good, so to say, trajectory for growth going forward in the next couple of years. If we look on the market, the addressable market, which is relevant for us where we play, it is approximately SEK 80,000,000,000 market, slightly adjusted since the last Capital Markets Day due to market growth, of course, and also due to the FX impact on this. The market is growing with roughly 2%, 3%, the base for what Kai mentioned to you earlier, stable growth, but we also see various pockets of growth that are higher. This could be related to specific products, but this is also related specific geographies. If you look on the split of the market potential, it's divided approximately 40% in EMEA, 40% in U. S. And the remaining 20% is for the rest of the world, while also the emerging markets are part of this. However, the split of product potential within these geographies looks very much different. There is an even split between handheld products and wheeled products in EMEA, whereas the North America region is predominantly wheeled oriented, whereas the rest of the world and especially driven then by emerging markets is actually predominantly handheld driven. So this also, let's say, sets the dynamics within the market slightly different depending on which market and which region we are in. The market is very much performance and service driven. This enables us to sell value add at a higher profitability. Both professional customers as well as prosumers request products with high performance, with high quality, with high reliability. And of course, the professionals are very much requesting the productivity within the products when it is. We are supported to meet the market requirements, not only through our organization and through our own product assortment, but of course with the help of the dealers. It is a fragmented dealer market, but they are very much, so to say, aligned with us and supporting us. And they are providing both sales support in terms of application knowledge, but also of course service. And the aftermarket is very attractive in terms of selling consumables, wear parts, but also protective equipment as an example. Looking on the market trends that Kai mentioned earlier a bit here that are happening, the general market trends, then we also feel that they are supporting us and our ambition for growth. The increased urbanization into the cities, the older population growing is, of course, increasing together also with the need for sustainability, the request for sustainable products. This in whole is actually enhancing the potential for the commercial lawn and garden opportunity. It's also enhancing the potential for the new products, be it robotics, be it battery products. And the acceptance of those products, we can see have increased very much rapidly in the last couple of years compared with how it has been earlier. Also, the emergence of the Internet of Things and the connectivity opportunities gives us good opportunities to provide value add features, services for our customers. And I will come back to that later, but we are already involved in that part of the, so to say, offering since earlier also. Growth and profitability. There is, as I mentioned, stable growth with pockets of higher growth, naturally already discussed. Robotics and battery are some of them. But we also see that there is a growth in the aftermarket. There is a growth in the CLG in general due to some of the things that I mentioned. And we also see that there is a growth within the emerging markets coming back after the political and macroeconomic situations, which we see today, as an example, in Latin America, in Russia, partly in China as well. So there will be a higher growth there. The good profitability is again due to the performance request where customers are requesting the high performance, the quality, the service and as I mentioned also accessories. So there is a good opportunity for getting to that growth there. We have a good global geographical presence spread out reasonably well to be able to balance both opportunities as risks when the macroeconomy changes all over. We have a strong market share. Overall, approximately 20% market share with a leadership position in chainsaws, in riders and in robotics. And we also have very highly over average market share, I should say, on the European markets versus the North American, Andy. We see clearly future growth opportunities in all of the regions, all of the geographies, even though the growth again, certain pockets, certain geographies will be higher over the years to come. Again, certain pockets, certain geographies will be higher over the years to come. Our focus is on the professional customers. This is a group of people who are dealing with forestry, the prologgers. This is about the commercial lawn and garden, keeping the parks and the green areas clean. This is also about the arborists, the climbing in the tree and cutting. And then we have the prosumer, which are mainly 2 groups of people. These are the landowners, the private landowners who need the products for dealing with their, let's say, land but not on a professional aspect. And then it is about the customer, the well affluent customer who would like to go for a premium product, who like the performance of a premium product, who has the trust and wants the reliability of the brand and of course, who is affluent and can afford to buy the brand as such also. And we are supporting this market with our dealers. We have approximately 25,000 dealers across the globe with whom we have long term relationships since many years. The dealers, as I mentioned, are providing sales application and also services. However, they differ a bit in how they look like. We have a part of the dealerships, which starts to be very much more modern and more commercially oriented, whereas we still have a larger part of the dealership, which is the traditional dealers originating from the service aspect and moving more into the commercial aspects as such. Looking on the competitors the competition situation here, there are traditional long term competitors in the market here. They are, of course, all very competent in their area. However, the difference is that none of them really have the breadth of the product assortment we have. They are more niched into their specific niches where steel is oriented towards handhelds product mainly and where John Deere and Toro, for example, are niched into the wheeled products very much, Yamabikko into the handheld, Honda, slight mix though. Basically, all of these are smaller than us in terms of the market where we play with the exception of steel that has a bigger size. Also, we see the entrance of new competitors coming in very much mainly related to the new technology, the battery and the robotics, of course. And in some cases, they bring the, should we say, the battery technology with them, but they are in most of the cases actually lacking the application knowledge, which is our strength and still our benefit for these competitors. But it is very much, as Kai referred to, we need to be on the edge regarding the R and D here to be able to be a front of these competitors entering us because catching up, of course, goes much quicker today than what it did some years ago. Looking on our financial performance over a period here from quarter 4 till quarter 2 this year, rolling numbers, rolling 12 month numbers, We see a stable growth. For the period, we've had a CAGR of around 5% doing well. And of course, the margins are actually following this growth even though you will, of course, react to the dip that comes in quarter 3, which is very much attributable to the FX impact that started there and then continues throughout here. As Jan pointed on, we have a negative FX in the group and also in the division of a little bit more than €200,000,000 actually for the first half year. That also will continue. But underlying, there is a good improvement. If we add back the FX, there is a 1% point addition to the EBIT slightly more even, which shows this. The EBIT improvement is coming from various, so to say, contributors, strong development of leadership products where we have good profitability, focus on those, also geographical mix. There are certain price differences in the geographies, of course, which impacts this. We have, of course, volume impact, volume improvement from the growth. And we have worked very much with efficiency improvement, cost out benefits, whether it is related to efficiencies in manufacturing, in sourcing or in design R and D to simplify the platforms. We have also benefits from manufacturing footprint changes that was done some time ago. You know that we closed down a factory in China to consolidate our footprint. During this period of time, we have started out to do the investments for growth, and we see that we are able to offset the investments for growth are very much financed by a combination of the operational improvements, the growth improvements as well as the savings that we can do. However, not fully for this period of time managing to offset the FX that is there, and as I mentioned, will continue also to be for a certain period of time here to the end of the year. But we are very clear on the fact that we manage for the future to both manage growth, the investments that we need for growth, let's say, in addition to the organic growth and as well to work with cost savings that we finance these investments for the future. Since the inception of the division, we have been focusing very much on the commercial the professional, the commercial customers, improving our sales activities, ensuring that we support sales and also ensuring that we support the customer satisfaction very much. We have created dedicated key account organizations for the CLG, which has helped us to enter into that market very much, of course, helped by our wide product assortment and also some specifics that I will come back to. And this has also been supported by operational improvements in availability, product availability, distribution availability to customers. The professional customers are requiring quick turnarounds on parts, quick turnarounds on their products, etcetera. So that is something that we have worked on very much with. We have also managed to start out with the robotics expansion into commercial applications, partly touched on by Kai from one of the questions here, where we see that the interest for that is now starting to be and we also have a dedicated part of our organization working with that and also take that into account when looking into the future development road map for our products, of course. We do have I think it's important to point out that we do have a very competitive battery assortment since some time now, which in the last years have been, let's say, fully completed with new products. And we have also launched these products globally in a, so to say, directed global launch to all the markets and we see good results from that as well. Digitalization, that is also something that is not entirely new to us. Since some time ago, we have developed a fleet management system, which is a software that helps the professional customers to manage their fleet, to understand their utilization of their fleet, to understand when services has to be done on their fleet to also understand how they actually run their products and by that making changes in how to operate and improving their productivity. This is a software that is constantly being developed further. You will have a demonstration later here today on that. So that will give you more, let's say, insight into that, but that is one area. The other area is the Automower Connect, where we remotely can control our Automowers. This was introduced already last year as an extra feature on the 330X. And this year when we released the 450X model, this came as built in, which means that you can more or less completely control your robotics, start, stop, program the times when you want to run it, change the cutting height, etcetera. So it gives you a versatile, let's say, opportunity to remotely control your as well as you will get in case it would stop, which very seldom happens, you get an SMS and you understand that it's also stopped for whatever reason. We also do other things here. Actually, don't think you might not see it today, but we have an, should we say, application or a support here in the store where you can when you come in and you want to buy a robot, you can actually key in where you will find your house, Google Maps, you will set out your lawn, see the size, and that will also trigger you to give you certain indications on which lawnmower and you will have an interactive discussion with the system to help you to find the best lawnmower. So we are already there. Right now, it is very much about accelerating this or making sure that the organization is following this, making sure that we coordinate all our resources within these features so that we don't develop them single and to build and to utilize and to build a common base, a common platform, which also was mentioned here before earlier. Good. Moving ahead. We have a very strong innovation capability in line with our premium position. We are focusing on R and D very much. Our R and D spend is slightly higher than the average for the group, enabling us to really develop state of the art products and being in the forefront on this very much. And we have in the recent time, we have developed several, let's say, groundbreaking products that a couple of them will be mentioned here. Overall, robotics, we have the leading portfolio in robotics, starting from the small robots, the medium sized to the big sized, taking 6,000 square meters and now with connectivity, again, enhancing the user friendliness for the customer very much. The new robots are also equipped with new sensor technology. They work faster. They are much more reliable. So we are really innovators in this area and continuing and keeping that position also. Battery, I mentioned that, complete assortment that has been complemented during the last period of time, among them with professional equipment, pole saws for taking down very high branches. This is trimmers, which now can be used with a steel cutting knife instead of a trimmer line. This is improved batteries with longer run time. So all of this is really being, let's say, supporting very much the requirements for improved productivity by CLG, but also sustainability. We see that they come and ask for this because they want to start working earlier in the morning. They want to work later in the evening. They want to work in an environment where there is a lot of people and where they previously were not allowed to use petrol products at that point of time. And actually also from a, should we say, runtime, the electric products provide you with much better productivity. You don't need to we can you don't need to necessarily to stop and change the trimmer cord, fill in the petrol. With the backpack, you can work anywhere between 6 to 8 hours really. Of course, you don't work that full all the time, but it gives the opportunity. So it's very much improved. On the pro handheld side, especially on the chainsaw side, we are also continuing our development. We have recently launched a new chainsaw, the 460 Rancher for the American market, which is the 1st prosumer saw with the auto tune, the fuel management system, which is there, which previously were on the high end professional products. We have also now launched end of this year a upgraded 560 model, one of our pro chainsaws and we have in the pipeline further development of new platforms to the professionals, mainly in the chainsaws, but also on the brush cutters. So that is progressing very well. The collecting rider is something that we are completely alone of. We are the innovators of that right now with a rider that actually collects the grass through a patented auger system that goes across the rider. We have had or we have a very large rider assortment, which is fulfilling the needs both from prosumers all the way up to the pros. The biggest and most complex model we have is in the corner over there. But with this model, we actually open up a large, let's say, potential or market in, I would say, Central and South of Europe, which is a collecting market and where the riders hasn't been suitable for that because it hasn't been collecting. So this is one of our key products for years going ahead, and it has been presented to our dealer network already and met with great interest and excitement, and people are very positive. Next here is our new X Cut chain. I'm very glad to say that we have done the launch last week, the official launch of the first own manufactured, own design chain. The launch continues now throughout this period of the months here where we're launching this firstly in the Nordic and the U. K. Market. This is for us a strategic investment. This is for us the opportunity to, in the future, really optimize the complete cutting experience for the professionals using the saw chains. A very large part of the cutting experience lies in the saw chain. By being able to design the saw chain ourselves, produce it by ourselves, combine that with our bars and the development we do there and also with the engine, the power pack of the chainsaw, we can optimize the chainsaw and take it one step further to really be a very, very, so to say, performance oriented tool for the professionals and that's what we are doing here. Last but not least, very important product addition for our Commercial Lawn and Garden segment and especially in the U. S. This is a zero turn rider, but it's a stand on. We have missed that. That is actually a key product in the CLG operator setup of different kinds of products and tools that they are using. And this is a product that will be launched very soon. It's still under development, but still wanted to point out here that this is very important. So overall, we do have the strong innovation ability within the division. And through the divisionalization, this has also simplified us, ensuring us that we can have a focus on the professionals within our R and D, making it much clear for all our people working in this and really making sure that we deliver innovative products to the market in a good way. Coming back to the profitable growth strategy that I mentioned in the first slide to you a little bit. There are really 6 core elements of this. We have defined them in a good way. We do have, so to say, detailed development activities behind these core activities. And they are in short, this is about dealer development, ensuring that we improve the commercial and the service ability of our dealers very much. This is for us also to become a business partner with the dealer and making sure that we help him to sell out and not only from our side to sell in. It is about the commercial lawn and garden reconnect that I mentioned. We now have the products, both our traditional assortment as well as our new modern assortment that helps us to go into the CLG operators and have unique selling points with battery, with robotics, with the fleet management backed up by our broad general assortment that we have. This is about the parts and accessories focus. For some time, we haven't really had the right focus in this area, which is a profitable area. We have a market share here, which is, so to say, below average of our reasonable and fair market share. And this is not very much about developing new parts or accessories as such, even though the accessory assortment is something that is renewed all the time. It's more about having a very structured, let's say, back end organization, having a very structured focus on these products on the front end, and we are adding both sales methods as well as people into this activity in order to be able to grow. Then we expand. We expand in robotics. As Kai said, we've been in the robotics market for 20 years. So is there more to do? Of course, there is much, much more to do. There are a few countries which is providing our robotics sales today. And even in those countries, I would say that the penetration can still be much, much improved towards what it is today. If you look on the total loan market taking into account walk behinds, riders, tractors, etcetera. So there is good opportunities there to penetrate that much, more also. I'll come back to that. We'll have a couple of deep dives in the next slides. I'll explain more on that. Battery products, again, expansion. We've done the 1st rollout into a truly global rollout, and we see that, that is giving result, but taking also the next steps here. And then emerging markets. As I mentioned, we are present on the emerging markets today, basically all except for India. But as of Q4, we are in operation in India as well with our own sales force, our own organization. And then we basically cover all of the, let's say, mature or the more mature emerging markets, if I may say so. We're also present in Africa and accelerating there as well with our efforts in terms of building the organization and bringing on more markets. As for the other ones where we exist, China, Russia, Latin America, this is very much about growing the dealer network and also about setting the logistics structure, the availability of our products, which is can be improved with regards to the vast geographies that these markets represent also. And for all of the emerging markets, an important part is, of course, the entry level products to have the right entry level assortment entering into these countries. And these markets also actually contain another type of agriculture than the traditional, should we say, West European or American. This is specialized light agriculture, coffee beans, coffee bean harvesting, tea harvesting, etcetera. So we're also adapting to that kind of market very much as well. Our target is to outperform the market in terms of sales. We do believe that we can grow this 1%, 2% above the market growth that we have been talking about. And we think that these strategic activities will take us there and also push us towards the market leadership in the right way. Dealer network is The dealer network is really fundamental for, let's say, our way of operating. It's fundamental for our way of serving the customer and ensuring that we also have a future success despite the fact that e commerce is coming. I'll come back to that last statement a little bit later. What we have done is that we have developed a program that strengthens the dealers' commercial ability, service ability. There is a very structured documented methodology where we look on the potential for a dealer in the area where we decide and support on the activities that the dealer has to do and where we follow this up on a regular basis and open up the commercial opportunities for the dealers as well as in service on how they can attract more service work through a structured way. We combine this with a shop profiling also. This shop here is actually not just a shop for sales. We call it the concept store, and it is very much a store that we use for developing methods and features for our dealers, how to display, how to display within the different categories, how to act towards the customer, always sell 1 plus 2, sell a product plus 2 accessories. There are methods that are being developed here that we then use and take out to the market. Key for us, of course, to succeed is very much to expand our dealer network in the urban environment. We still are not represented in the good way that we want to be in urban areas and also taking into account the urbanization that we see globally, which is also, let's say, pushing the demand for being present more and giving a better accessibility. Now in this respect, we will look for more dealers. In some cases, this will be the traditional style of dealers, maybe current dealers expanding, but it could also be new kind of dealers that we find, more specialized, let's say, shops or specialized chains, for example, high end garden centers that could be. However, we are not really considering to moving into mass retail with the Husqvarna brand as we feel that the customer experience must be related to very high technological service and support as such. Yes. And then e commerce, coming back to that. As I said, we see today a number of our dealers also working with e commerce. It's not overwhelming, but it is there. We think it is a very good thing. It does actually provide an extra channel for our customers to be to shop our products, very good for after sales, but actually also for some of the bigger real products, so to say, is being handled there. We are under development to develop an e commerce solution for our dealers to support them. There are, as I mentioned, a number of dealers active by themselves, but we are also developing a platform that we will be able to offer to the dealers to help them to be more active on this and to actually do the business there. This platform will, of course, be integrated into our system, into our online marketing platform that we also have launched now in this year and rolling out an upgraded version of, let's say, all the information that is available on the Internet no matter which kind of device you are using. So that is also something that we do. When we look on the dealer business program that we have now started out, we see that for certain cases, we see that when dealers apply this, they can really grow much more than what is the normal. We see the dealers even grow 20%, 30% when they really adapt to the program, understand it and take advantage of it. So we think that we are on the right way with this activity for sure. Commercial lawn and garden. This is our largest professional opportunity. We are fairly large already in the, let's say, forestry segment, whereas I would say that we have an under average market For us, For us, this has been very much to really make sure that we do have the organization that can meet the customer on a professional basis. This is another type of sales and towards the end users. We have organized us now with local key account organizations in a large part of the major markets that we have globally. And we also work actively including the dealers in this. But we have a model which is ranging from all the way where we do business directly with the CLG operator in case they are large nationwide and wish to do it, whereas midsize or small size are being handled either together with us with a dealer or separately by the dealer. So we have a good structure for how to work with this. We do have the products today for meeting up with these commercial lawn and garden market, but it's also very much about establishing ourselves as a visible partner, as success in many cases here. For example, in the U. S, we have several contracts now with nationwide suppliers of CLG operators. 1 of the big ones there is Asplund where we have that and they are also moving in very much into landscaping where we are the sole suppliers of the products for them. We also, in the light of the sustainability effort that Kai mentioned, which is for us more of a larger scale than not only the CO2 footprint related to our own factories, but we also work very much with the silent city concept where we bring out the sustainability aspect and the, of course, the benefits of our battery products towards municipalities. And we have already pursued several of these events, and we continue to do that. And we have already several cities that have shown interest. City of Antwerp, for example, are completely going over to battery products, Husqvarna battery products as their tools for their operation in the town, so to say. So that is also for us a very good way of moving forward. We also see first installations of our robotics in commercial applications. Golf course is one of them, which was mentioned here earlier. Started out with having a few robots mowing on the fairway and now ending up, I think, in the last info I have is that there is around 25 of those robots going in 1 golf course in Germany and also mowing not only the fairways, but the greens. And of course, that also gives us a fantastic, so to say, promotional effect on all the members that are playing golf there. I mean, they see these things and they prefer to play golf and not to cut their loans. So that also gives us an effect of that, of course, which is very good. Also some hotels, some restaurants with their own loans, etcetera, we have installations in. So the interest is coming. I would say that this is was not the case when I started a couple of years ago here. Was no discussion about commercial applications at that point of time. And I think this will move much more ahead also at some point of time when the robotic installation will not be so to say dependent on the boundary wire, This will also give a larger flexibility towards the commercial lawn and garden operators of how to use their robots, which is, of course, the movable aspect versus consumers that are, so to say, permanent installations on their yards. Good robotic lawnmower. Well, kind of have this presentation and discussion without really stating it is our largest prosumer prosumer opportunity. There is no discussion about this. Our ambition is to really continue to be the market leaders, strengthen our market leadership, and this is really through increased market penetration on existing markets, but also on new markets. And it is about really continuing to focus on the R and D and developing new models, new platforms, new solutions. I mentioned one of the things here for commercial lawn and garden without boundary wire as one example of something that will come in the future. So we are working very much for that. A prerequisite for this, really 2 things. 1 is the technical support capability, these robots. As we roll it out, we need also, of course, to make sure that we educate our dealers that they understand how to work with the robots, how to support, how program the robot. It's not that easy. In the beginning, when you have a very low sales, a low frequent sales, it takes time before you come into this. But we are putting a lot of efforts into supporting our dealers in this. And especially when we go into the new markets, it's also about educating our own organization in how to deal with this. The other one is, of course, the urban sales network. This is a product which is to a certain way, let's say, consumer oriented and needs to be picked up in the way consumers shop in the areas of where the consumers are. So that is also something that we are focusing in. Connectivity also helps us, as I mentioned before, no doubt about it. And I would like to say that we also see clearly now that the acceptance for the robotic mowers is much, much better and the reception is much, much better than it was earlier when we launched this on new markets. An example for this is France where we now have launched it for the 2nd year and we see basically that this has exploded and that the sales is up on a level where other markets have been, let's say, fighting 10 years to get to that level, while this is now happening in 2 years. We have also launched the robotics on the North American market, U. S. And Canada, still very small sales but very large interest also from media, TV, newspapers, commercial interest, our dealers like this. And that is also a change very much versus how it was. I was in U. K. Earlier this week, for example, visiting a couple of dealers, and they all also confirmed that the interest is much, much bigger now than it was earlier. So I think the overall acceptance for robotic as a Mo in concept has increased and of course this is we grow good. We do grow faster than the market and we maintain our market share in this segment without any doubt. Glad also to say that some of our new models have been received very well, the 310, the 315 launched last year and the 450X, which is the flagship here on the far left side, has been very much positively received by the customers, and they are all, so to say, selling very well. So we're glad for that. Coming back to the battery. The battery power products, we are in a good position, as I mentioned, and no doubt about that. We would like to transfer our application knowledge into these products, of course, towards the customers' recognition, but also gain battery application recognition, which we don't really have yet today, not being in that segment, but we are on the way with that. I think what is really the key here is that the hesitance to battery products is really will they do the job and will they last. But as Kai pointed out, once the customers and the professional users take the products in their hand and once they use them, they see that these products are perfect for them and that they actually provide this kind of performance that they are looking for. That is what we do when we go to market with a global launch plan, bringing this out to the dealers, making sure that people can test our products very much. This is much more about testing than when you come and you want to buy a new chainsaw. You have used that before. You know it. But you don't know the petrol products, how they are working. So that is important very much. In parallel, we, of course, accelerate the next generation product development, looking for products which can have higher power, looking for batteries with longer run time, looking for variable charging solutions for professional users as well. And we do cooperate here very intimately with various suppliers of battery cells, engines as well. However, we do produce these products entirely within our own production unit, and we feel that this is in line again with our position of being a premium supplier. We want to make sure that this is a top of the line product coming out once it's ready. We see a strong growth in this product group as well then with the acceptance of these products also, which is very good. Okay. Rounding off, coming back to the first stage again, summarizing and basically saying that we have a very strong foundation. We have a very strong brand recognition foundation. We do have a very strong financial foundation, which shows that we are able to grow and also have an underlying EBIT improvement through that. With investments into the strategic six areas that we are focusing on, the dealer development, the CLG, the parts accessories and expansion of robotic battery in emerging markets. We truly feel that we are on a good path towards market leadership, not only in petrol, but also in battery and robotics for the future years and really supporting the group for the profitable growth. Thank you. Questions will come after Sascha. And before that, I would like us to finish off and listen to what the professionals say about our new saw chain. My first thoughts are how is this different than any other chain? As soon as you start to use it, you can feel the difference, a big difference. If I hadn't had my visor down, you'd have seen my face because as it pulled down into the wood, I was like really excited about it. The new chain was amazing. I was a little skeptical at first coming into it, but after cutting with it all day and really diving into it and have a real comparison side by side with each chain. It was pretty amazing. The center of good work is always a sharp chain. With this chain, you have less vibrations in the cutting. You have more performance. I like it a lot. It's pulling into the wood really nicely, using the power of the saw to cut, but not in an aggressive way. It wasn't trying to kick back at all even when we were doing bore cuts. For this chain, pretty much out of the box. It doesn't elongate. It just stays in the same length. And we got a lot of trees and at the end we checked and it was just a little bit of slack. I think that will definitely benefit an arborist that they don't have to send it back down or have it retentioned. They can pretty much go straight into work, straight off out of the box. If I'm not cutting, then I'm not earning money. So if I'm either sharpening or if I'm retrenching my chain, then I'm losing money. So with the new X cut, I don't lose anything. Overall, the chain was amazing. I'm really pleased they let us try them. Really good. Yeah. Good morning, also from my side. And I would like to take you from the world of professionals to the world of passionists, passionate gardeners. It's nice to be here and talk a little bit about Gardena for multiple reasons. Number 1, I think we've got a story to tell. We had a good performance the last 2 years and we're looking forward to continue this, of course. But we're also celebrating actually a very important birthday, our anniversary this year, 50 years of the Gardena brand, 50 years of success in gardening, 50 years of a brand for passionate gardeners. So let us dive into what this world of passionate gardeners is about. And how we do this and what are we doing, I would like to spend the next minutes on. Main takeaways for today that I would like you to take with you. Gardena is the premium brand for passionate gardeners and we'll talk more about what these people and this target group is about and what they value. We're looking at since the inception of the division, a very strong performance both from a sales and the EBIT perspective and we're looking of course on continued development in that way. We have invested into growth and brand quite intensively and we continue to do so and we do this by efficiency measures that we do internally taking money from where we can afford and investing it where we want to grow. And lastly, there's 2 main areas that are really driving the growth for this brand, and that is geographic expansion and what we call the automated garden specifically around robotics and the smart system, which has been alluded to before and I will get back to this during the couple of slides coming. So what is this market about? We look at the market and estimate it to be about a SEK35 1,000,000,000 market in the categories that we are playing in. If we look at the regional split, you actually see that this is a high share in North America, but we also need to be very careful on how we look at America as and I think we've talked about this before. The watering system specifically, which obviously is a stronghold of Gardena, is a very different system in the U. S. Where the coupling world is not established as a big market. It's a very different technical standard with threads and metal and no system aspect at all to it. So there's a different market and a different technical standard. But still we like to define the market rather too big than too small for that sake. So what drives this market? There's a couple of areas that I would like to point out. From a characteristics point of view, we are experiencing in this market as in other more consumer goods oriented markets for sure a polarization of premium versus private label, the two ends of the spectrum, also but not only driven by the evolving multichannel landscape and the resulting transparency, but also different business models emerging from an e commerce perspective, but also I would say it's not only e commerce DIY, we will get back this is also other channels that are interesting for this category. Passionate gardeners, however, value a lot innovation, quality, the system aspect of it and we get back to this of Gardena and we will get back to this. We actually believe that whilst there is changing fundamentals and dynamics in the market that the majority are more opportunities for the Gardena brand such as urbanization. You could argue people moving into cities, they leave the gardens behind. That is one way to look at it. On the other hand, there is a big need for green also in cities or in more urban areas, gardens getting smaller, the balcony, the terrace having a much higher importance with a lot of opportunities also from a Gardena perspective. Sustainability is, I would say, a core element, of course, from a Gardena perspective and the market is putting more focus on sustainability. In aging population, people getting older having more time to spend in the garden and also typically having more money to spend in the garden is not a bad thing necessarily for us and we talked sufficiently already before about the Internet of Things and the digitization that is of course helping in multiple fronts and we will get back to this as we talk about robotics and smart later. From a growth and profitability perspective, we are we're also seeing a growth, as mentioned earlier, 2% to 3% across the segments, but of course, they vary quite a bit between regions, countries, but also between segments, if you take a robotic versus other categories, for example. And likewise, the profitability depends on which segments, regions you're playing in. That is more relevant for our Gardena brand rather than underlying fundamentals than house built, consumer confidence and similar things given the industry we're in. So how is Gardena set up in this market? Gardena is extremely strong in markets that are, as we call it, driven by European inspired gardening culture, which is, of course, a lot in Europe because there you have a lot of passionate gardeners who really enjoy gardening and see gardening as a pastime that is worth to invest money in and actually you enjoy to spend a day in your garden, which is not necessarily the same across the world. But it is in many parts of the world for sure, Europe predominantly, but of course also in other areas where Gardena is present like Australia, Canada, South Africa and other markets, which are of high importance and of high relevance to us. We assess our market share to be at around 25% in Europe. Of course, differing again by markets, our strongest markets are the German speaking markets, which is the historic core of Gardena with lots of opportunities still to grow also within Europe, which is part of our geographic expansion focus as well, of course. We are leading in multiple categories, whether it's robotic in retail, whether it's watering, course. We are the dominant player in watering across Europe, whether it's in the combi system that we offer, whether it's in pumps. There's multiple categories where we are the clear market leader. And we created categories historically, and we will continue to do so, and we will talk about this in a second as well. There's also no competitor who is as broad from an assortment as we are. Gardena is the only brand who really covers multiple categories across the gardening world, which, of course, is a great stronghold for us and something we continue to develop. We talked about our target consumers, passionate gardeners, people who enjoy gardening, who express themselves through gardening, who take a specific personal joy to work and operate in the garden and see the developments and a second group, which we call the practical optimizers. Adena's historic strength is around systems. We operate in systems, which is a fantastic, of course, platform for continued growth systems like the watering system, the underground watering system, the micro drip system, the combi system, the battery system, Gardena is all about systems. But it's not only this, it's paired with superior and leading innovation shaping categories, the design language of our product, which is very important for the identification also for consumers, the joy of using these tools and, of course, the quality, which is very important to us. We are very well distributed across all the modern distribution around garden centers DIYs across Europe specifically and also growing nicely within the online channel where we see obviously interesting opportunities as well. So it's an attractive market. We are well positioned. So how are we doing? And of course, you're aware of these numbers, but I would still like to pull them up as before. We've been growing nicely in sales with an average of an 8% growth. Also, EBIT has increased from the starting point by 3 percentage points since 2014. And with both, we are outpacing at least specifically from a sales perspective outpacing the market growth, of course, which translates into this EBIT development. But as mentioned earlier as well, we also took to support this EBIT improvement efficiency measures to offset the currency headwinds, but also to have the ability to fund some of the strategic investments to drive further growth, whether it's around brand building, whether it's about new products, innovation, as mentioned before, and of course, capabilities and capacities. Now what's behind the numbers that really drive these what's the things that drive these results? We've been successful over the last 2 years to expand distribution with new customers. We're getting back to this in a second and I'll talk about geo expansion a little bit more, but also new channels, whether it's food channel or loyalty programs or other areas where people think about gardening, but may not necessarily go because they are gardening, but then they pick up our products, which is an interesting and good opportunity for us, of course, as a brand as well. Successful innovation mentioned very important to us. To name a couple of examples, we revamped the complete range of watering system of the Gardena world over we started this 2 years ago. We are bringing again the last part this year, which is a frost proof system, which is unique in the market, which means no more leakage after the winter if you left it out in your shed, which is a great brand builder for us and of course a sales driver. A new complete new range of robotic mowers introduced the Seleno range, the most silent robotic mower in the market in the retail space. And the Gardena Smart System, which we will talk about coming up as well. Design is important and we are proud to have gained for all new products design awards this again for the products coming for next year. Also recognizing the design leadership we have, which is important to us as we are receiving lots of good consumer testing from the various institutes across the markets. We were also benefiting from, as mentioned earlier as well, like a good season last year, very hot and late summer Q3 in Central Europe, which also puts a lot of pressure on our supply chain, but I'm also proud to say that we delivered very well and we could capture that potential, which for sure is a nice achievement as well. And all this is nice to see, but it's many people doing this in this division and I'm proud to have a very passionate and dedicated team to drive this and we're obviously continuing to build and develop that passion. And all this together led us to also gain market share over the last periods and we will continue to do so as mentioned earlier by the targets. And the platform to do this is what we call passion and growth. That's the division agenda we are following the since early 2015. And this is around 4 key areas. Geographic expansion drove from the core, which is right now more around the German speaking countries and close by to the markets coming thereafter Further strengthen the Gardena brand, of course, through innovation and specifically the automated garden. Next to brand investments, all the other things you need to do, course, but these are 2 very important elements of this expanding in the distribution, multichannel, which means, of course, doing more with online partners, but also in alternative channels like mentioned earlier, food loyalty programs, etcetera, and operational excellence, number 1, from a cost perspective to fund some of the good stuff we want to do with the first three areas, but also to continue to constantly improve quality delivery and other aspects of our business to really stay leading as we are today. So let me dive in a couple of examples, taking geographic expansion initially. We have selected a couple of markets where we said, here we really want to make a difference. Here we really want to invest specifically with from an innovation perspective products focused for these markets, front end investments, meaning sales capabilities, capacities and marketing, brand building. And we strengthened our central organization to drive international and support international key account developments. And this has been quite successful. We've been successful in expanding listings with existing customers in those markets. We've been successful in signing up new customers, which have had not had us in a certain range or not at all. And of course, it helps to sell the sell through of the existing listings already. All this bringing together that within the nice growth that we've seen, we actually do see above average market growth in our core markets, German speaking countries, but we see an even stronger growth double digit in these markets where we put a specific focus on and supports us in our strategy and convinces us that this is the right focus also going forward. Another very exciting and important part of our growth agenda as it came up already before is the launch of the smart system. The system initially consists of the products you see on this picture, robotic mowers, 2 models, the new Seleno range connected, a soy sensor, which gives feedback on temperature, humidity, light, etcetera and a water controller, all connected via a gateway that connects to your smartphone and allows you to completely independently from wherever you are control your garden. Now this is unique in the garden world. And as a market leader, we strongly believe that, of course, we will shape this market and take a strong leadership position and have successfully done so this year. We have the launch in the first five markets: Germany, Austria, Switzerland, Belgium, Netherlands and the next markets coming. We will have a little demo later in the break. And let me say, you're all representing banks, funds, shareholders, but you're also all target group and we're launching in Sweden next year. Great consumer acceptance so far, great customer acceptance, also great feedback interaction now with the consumer directly, which is a nice add on of the system because it gives us completely different ability to interact with our consumers getting feedback on how to improve, where to improve, learn and also create a new way of doing business. Part of this journey has also been the acquisition of a company, a start up in Zurich, who has been in this field for a couple of years already. And we've integrated this company completely now into the Gardena division, whilst maintaining the offices in Zurich as think tank for this business and the former CEO of Cubati is actually now heading a category that we've created in our organization, which is solely focused on the smart business model. And that's Filip, and he will actually run also the presentations later in the break, so you will get to meet him. And as we speak, we are continuing to revamp and also to further expand the range for the season to come, adding further features, further elements to the software and also adding to our teams in order to drive continuous our leadership position that we have created here. Lots of words. Sorry for this. I'm getting excited about this product, of course. But actually, it's a short movie, which is the TV that supports the launch in the markets to give you probably an even better impression. The new smart system that connects both intelligent watering and lawn care, out now only from Gardena. So this is how we launched. You see there is now 2 more products already there. That's for the 2017 season. We're connecting now a pump within the Gardena range, which is a very important part of our business as well. So it's not only dispensing water, it's also the transport of the water that is added to the system now. Next, you see on the left side the battery, which is part of our new 40 volt range within the Gardena system coming out new next year, which we will have a connected and a non connected battery and which allows you to connect all your battery products in the 40 volt range into the Gardena smart system. And it gives you an impression of what else may come and will come going forward. As said, products are 1. The other pieces, of course, we have now products out there that we can constantly refine by working on the software and updating those products or our central intelligence via the application. As we speak and really create more customer value and new features going forward, which is a nice additional benefit. And we're working on all these fronts as we speak. Smart is 1, very important as mentioned to our growth journey, but products in general are of course and innovation is key and we're actually very proud to launch 60 new products into the market for the 2017 season. We have we are the innovation leader and we will continue to do so and have further ramped it up. And you see some of the examples here. And to just name a few on the right side, you see a completely new way of collecting fruit or nuts or cherries or apricots, whatever it is, by not spending down anymore. It connects to our combi system. You just roll over them and you have them all collected. Fantastic product once you've tried it. Great for an aging population if you think about it and it's actually launched to the market this fall. And Sweden is a golf country, it's also for golf balls by the way. And another very important part of our new products next year is new secateurs. It's the most used cutting tool in any garden environment and we bring a complete new range of secateurs to the market. New battery and electric products specifically around hedge trimmers as well as lawnmowers, also battery lawnmowers, which we are very proud about. And on the left side, you see a complete new segment we are moving and that is what we call city gardening. Understanding and respecting that the world of gardening is moving closer to terrace balcony with the urbanization, with gardens getting smaller. There are also however, also different needs of consumers in terms of product applications, some design language, packaging, channel as well where you sell it. And we're moving into this field first time next year with whether it's a small balcony kit, a new way of dispensing water, etcetera, that is packaged under the Gardena City Garden claim and launched for next year to the market. So, full pipeline, exciting. Let me sum up what I wanted to leave you with. Gardena is the premium brand for passionate gardeners. We've been developing very strongly over the last 2 years and have all ambition and intent to continue. We're doing this by investing, but also creating those investments ourselves into brand innovation and people in order to have the right competence and focus. And as mentioned and I hope it became clear that robotic and specifically smart is a huge platform for us on the one hand next to the geographic expansion that we're driving. And with this, I'd like to end my part and welcome Jurgen. All right. It's time to go ahead with the afternoon session. And just to clarify, the next Q and A session then, we will have all the divisions on stage. Okay. Hello, everyone and good afternoon. Over the next 20 minutes or so, I will give you some perspective for the journey that the consumer brands division is on. It's a little different journey as you have already heard from Henrik, Pavel and Sasha. It's less of a growth journey, although I want to give you some perspective for at what point we start to get back to growth in this business. And it is certainly a turnaround journey at this point. I thought it might be good for you to get some perspective since this is my first time in front of this group from my experiences relative to this turnaround activity. We call the turnaround of consumer brands the road to 5%. I have been on other roads. There was the road to sustainable operating income. There was the road to business simplification. And there have been other roads over the course of our last 20 to 25 years that were all around business turnaround. And so it's not unfamiliar territory to me. And it's not unfamiliar territory with the team that we're beginning to surround the consumer brands business with, which I'll give you some perspective on. Just to kind of kind of just at a very kind of broad level, take you through what this journey essentially is going to look like over the course of the next couple of years, kind of going back a year or so as well. About 18 months ago, we started to use the term value before volume, which I think is a good term to essentially say that not all sales are good sales in the consumer brands division. And a big part of beginning the turnaround is getting the mix right within this business, whether that be customer mix or product mix. And so that was really kind of the first phrase and I think it's a good quick description of the task ahead of us. The goal then over the course of the next, call it 6 months is to sustain the cost out momentum that we've established in the consumer brands division, which I will show you a couple of pictures of in a few minutes and start to regain a foothold for growth. We believe that in large part the sales declines are now behind us. We think there could be some additional bumpy road over the course of the next 6 months or so. But starting in 'seventeen, we intend to start to see a return to some growth, this time profitable growth and that accelerates into 'eighteen. And again, I'll give you some perspective on that. Just real quickly on the market, it's a big market about SEK 70,000,000,000. About 2 thirds of the market is in North America, with the U. S. Obviously being the biggest part of that. The balance of the market is largely in Europe. And I'll show you some perspective on the next slide for kind of how we play within both of those large addressable markets. From a characteristic standpoint, I think the key takeaway here is that Europe is a little bit different from a retail marketplace standpoint than the U. S. There's some similarities, some differences. The U. S. Is obviously a more consolidated market relative to big box retail, which is largely what we play in consumer brands in the U. S. Market. Still a little bit more fragmented in Europe and the European retail marketplace is a little bit more drawn to private labels than the large U. S. Retailers. The real the trend that kind of ties all three of those market trends together and you'll hear me refer to this a couple of times is this whole trend of kind of web enabled environment. Whether that is consumers seeking easy access to parts and accessories and service to connected products, to the trend that we're starting to see especially in the U. S. Of women getting more involved in yard work and in gardening. One of the first places they're turning to is the Internet to get information on our products. And so that this whole kind of Internet enabled world is really what ties some of that trend together. From a growth and profitability perspective, the consumer brands division has not done a good job over the last few years in kind of drawing off of innovation, which can come from the Husqvarna division and the Gardena division. That's something that we need to change and that change is going on right now at a foundational level and you'll start to see that play itself out in areas like robotics, 0 turn mowers and some other products that we'll talk about in a few minutes. The growth of online, I've talked about and I'll talk about it again. I'll hit it a couple of times, including e commerce is also influencing offline sales. So again, the journey, the consumer journey within these categories is quite often starting with the Internet. And then feature innovation for margin uplift, we commonly refer to this as kind of small I innovation. And it's typically a feature tweak, maybe a little bit of an industrial design change, something to bring new interest to the product. Again, it's an area that we've been behind on in the past that we're kind of playing catch up on in many of our product categories now. To give you some perspective for the division's sales split, you can see how dominant the North American market is for consumer brands division. We're about roughly an eighty-twenty split between the North American marketplace and Europe, with we approximate somewhere between 13% to 14 percent global market share, largely retail based obviously. The consumer segments in this part of our business are interesting because they range from 3 different segments that we call the practical optimizer, the convenience seeker and the power performer. And the reason that they're interesting is because there's a very large degree of involvement from kind of the uninvolved consumer to those that just want to kind of as quickly as possible, as cheaply as possible get their lawn mowed to the much more involved consumer on the part of like the power performer as an example. Those that take a real interest in the product that want to know the technical aspects of the product before they buy. And so it's a challenge to kind of market effectively to those 3 segments. From a channel perspective, we are starting to see some share shifting in the North American market. This has largely been brought about by some of the larger at risk customers in the U. S. Market and some of the share that they're starting to push off to whether that be mass other mass retailers or big box DIY retailers. We've talked about Europe being a more fragmented market, which is kind of slowly starting to consolidate. And then the growth of e commerce and the importance of online presence, just a couple of statistics here. So at least in North America where we've got some pretty good numbers around this, we know that almost 90% of all outdoor power equipment purchases start with some sort of a connection to the Internet, okay? Whether that's someone starting that they know they need to buy a new lawnmower in the spring, so they start to look at what their options are online in the winter time, so they can make an informed choice come spring. We know that almost 80% of those purchase journeys go through a retailer.comsite at some point. So I would love to stand here and tell you that everybody is going to polandpro.com, everybody is going to mcculloch.com. We are getting increased traffic, but a lot of that traffic is at retailer.comsites. And so our presence on those sites is critically important. We also know that from a unit volume perspective in North America, now one out of every 6 unit volume purchases is happening online. So more and more the actual transaction is occurring online and a lot of it is going through either pureplay.comorretailer.com. Our competitive set just very quickly is wide ranging. It ranges everywhere from large multinationals to fairly strong in some cases retailer private labels. This if the EBIT line on the left hand side of this chart looks a bit like a roller coaster, it also feels that way some days. And so but this really is the volume over value story. And it is a story that we will start to change the trajectory on again, starting in kind of early 'seventeen. You can see the sales decline and largely what this that chart on left hand side indicates is the early stages of our cost out programs starting to pay off and some pretty big mix improvement stories throughout the organization, bad mix for good mix into the business. And so those are both journeys or roads on this journey that we need to continue to sustain. The like I've said before, the majority of the sales drop we believe is behind us. That sales drop by the way was exacerbated really in Q2 of this year with a pretty poor weather outcome in the U. S. Market, especially in April May. We started to see some of that sales come back, but when you miss that real peak of the season, it's difficult to make all of that ground up. Although we have seen some more favorable weather conditions in the U. S. Market, especially over the course of the last 30 to 45 days. And like I've said before, really the beginning stages of the turnaround journey for consumer brands have been more around mix and cost out activity in its early stages. Some key achievements since launch of the division briefly, and this first one seems fairly basic. You would think that account relationships would be kind of rule number 1 in any business, but realize that when you've got a turnaround situation going on in your business, that's juxtaposed against a retailer's growth journey, oftentimes those things are at odds with each other and that can create some tension. And so job 1 really over the course of the last 12 to 18 months is to make sure that we stabilize our especially our large North American account relationships. And I feel like we've done a pretty good job with that first job. A lot of our mix improvements in the early days of this turnaround have really come in from our have come from our European business. They were the unlucky recipients of a lot of the FX issues that we suffered from over the course of the last 12 months, and they've done a lot of pricing in that marketplace. And as a result of that pricing, they've been able to also kind of start to mix improve that business over the course of the last year or so. We have a real commitment and we're starting to see some progress on things like e commerce, our parts and accessories business and also battery product development. Again, some of that coming down from some trickle down technology off of Gardena and the Husqvarna division. The chart on the right hand side really speaks to the next bullet point, which I'm particularly proud of because this is again not an easy thing to do in a turnaround environment, but we want to make a bigger deal out of what we believe are some very strong brands. They are brands with what I would call latent brand equity. It's equity that needs to be rebuilt and made and we have to make some deposits against that equity soon. But brands like Pullen Pro, McCulloch, Flymo and Weed Eater are arguably iconic brands in this space and we want to make a bigger deal out of those brands. It's not to say that we're going to walk away from private label business, but over the course of the last year or so, we have shifted to about a 14 point degree, the emphasis in this business on our own brands versus private labels, which is a journey we want to continue to stay on. The successful execution of AIP, which I'll give you some perspective on here, I think on the next slide. And then a new management team, which I alluded to earlier, about half of my leadership team has been replaced over the course of the last 12 months. The marketing leader for North America, our global supply chain leader, our leader in human resources and our European business leader are all new to the business over the course of the last year. That mix of newness and those folks have all been involved in turnarounds before with the historical solid mix of folks that we've had in the business for some time is creating a very powerful team to accomplish turnaround. And I will talk about cost out in more detail. So this is really the challenge in front of us and that is to continue this whole cost out momentum that we've got going in the business, which is in its early stages, but has really shown kind of at least the beginning light at the end of the tunnel on getting to the 5%. Along with starting really kind of the foundational work on capturing new opportunities, we will talk more about what that kind of broad phrase means, because it really has to do with where we go with product development and how successfully we can commercialize that product development. Sorry about that. Okay. Graphically, here's essentially what the kind of what the waterfall looks like to get to the 5%. Starting at a slightly negative 1.2% in 2015, we need to get equal leverage out of both cost out work as well as this capturing new opportunities concept. And you can see that kind of in the basically in the balance of those two bars. Offset by some contingency in FX, we get to 5% by 2018. Now, is this an easy path from where we are at today? No, this is a steep climb. But it is a climb that we have started and that we will continue to gain momentum on. The big question for this business is, can we gain momentum fast enough to get to the 5% in 2018? We believe that that target is attainable. And I'll give you some better perspective on both of those bars over the next few minutes. The first one, sustaining cost out momentum, which is critical to this business. On the left hand side, the first thing I'll talk to is designing the right organization to be able to get cost out of the business. And we've done a pretty effective job at that in the early days. We've got project teams that we've built that are made up of key areas of our business like R and D, operations obviously and sourcing that are effectively getting to kind of the cost pools of our business to get cost out. And we've got some pretty good, I think, momentum in that area. Productivity Investments, we're making much bigger investments in things like logistics cost out and in automation as another example. And we're doing this with sustainability kind of in the front of our minds. We have an aspiration to get to a 0 landfill waste outcome over time. By 2020, we want that to be a 20% reduction in our business of the amount of waste that we actually throw away versus recycle somehow in the business, lower energy use and then emissions reduction, which I'll give you some perspective on an example of that one on the next slide. Just to talk to a couple of the points on the right hand side of the slide, in terms of capturing labor efficiencies, so this is a business that from an operations perspective is maybe the most seasonal of any of our businesses in the group. And that there is a large part of this business that's in wheeled categories that are sold in North America that really ramp up from a production standpoint and call it the September, October timeframe and then start to ramp down pretty hard in the May June timeframe. So how we use our labor in that critical timeframe is really is a big part of how we make money in this business. And so compensating those people right, making sure that you've got some commitment to their labor hours on a weekly, monthly basis, and actually letting them kind of share in the success of the division. In other words, letting them share the success as they continue to get better in areas like quality, service, safety is a big part of how we're bringing more labor efficiency to the consumer brands division. Automation investments, I alluded to a little bit earlier. You'll see an example on the next slide of one of the automation investments that we've made. We're also starting to invest in areas like automating the stamping of our debts for lawnmowers, which seems like a basic thing. We are not as far ahead as the Husqvarna division plants in Sweden as an example or the Gardena plants in Germany when it comes to automation, but we are playing catch up. And that's a catch up game that will start to pay off dividends in the years to come. And then the last thing I'd mention on this slide is supply chain for e commerce and digital. The one thing that we are beginning to see and I mentioned that 1 out of 6 unit volume purchases in North America now being transacted over the Internet. What that means is we've got to get much better at delivering small parcels out of our distribution centers, whether that be to retailer stores or to consumer stores. And so we are putting more investment in distribution footprints to be able to do that effectively. The best example I can probably give you of the cost outside of this journey to 5% and kind of what stage we're at there is a what we call a footprint project that's currently underway at our Orangeburg, South Carolina plant, okay. So realize and how I just kind of told you that story about how we really ramp up production in the October timeframe and we start to shut things down slowly in May June, this plant is really at the epicenter of that sort of a production cycle. And so what we would do is we and this largely what comes out of Orangeburg is tractors and 0 turn mower product. We would ramp up production and start to push that product to as many as 7 different outside distribution centers during the peak of the season. And so there was a lot of extra handling going on in that equation. As we've started to enable a new footprint project for Orangeburg, we're building a 500,000 square foot DC adjacent to the factory. I talked about automation investments. From the time that tractor leaves the assembly line, to the time it goes into the DC, it will be untouched. It will all happen through an automated guided vehicle, which will load and unload the product in the new DC. And so I think it's a signal of the investments that we're willing to make in the business to get cost out effectively and get that journey going. You can see some of the reduction numbers relative to the footprint project, 328,000 kilometers of interplant trucking is now gone, 317 metric tons of CO2 emissions are gone, 180,000 product inventory transactions are gone. And so you can see the trend here. These are good solid payback kind of investments that we will continue to make in consumer brands. Switching to that same view, but now looking at the 2nd bar. So admittedly, we have got some good momentum going on in the cost outside. We believe in this business, we can get to somewhere between 2% 3% of cost out of our total cost bucket year on year, will really help guide that left hand bar. But getting to the right hand circle bar and capturing new opportunities, we're at the very formative stages at. So what does that mean for this business? It means that we need to start to focus more of our attention on growing categories where there is some decent margin pools. And so in 2017, we will introduce our 1st robotic mower in consumer brands. We affectionately call it the McCulloch RAB. It will be available in all European markets. We have every intention of putting that same product into the Pull and Pro brand and starting to look at some test markets in the U. S. For that same product. And in a nutshell, this is a robotic mower that is probably a notch down on the technology and feature set level compared to Husqvarna and Gardena, but available at a competitive price and we feel like it's going to be a great launch for the consumer brands division. We are also expanding our 0 turn assortment. So there is a big trend that's been going on over the last 10 years or so in the North American marketplace, more away from tractors and into 0 turn product. There is good margin in 0 turn. And so expanding our deck assortment and our deck engine combinations will be a big part of reintroducing some excitement into 0 turns. And then battery product, all 4 of our brands by the time we get to spring of 'seventeen will be playing in battery product. And that's been a fairly quick journey over the course of basically the last 12 months. We already have a Pullen Pro 40 volt range in the U. S. Market. We've got a 20 volt weed eater range in the U. S. Market. We will soon have a McCulloch 40 volt range for the European market. And we're introducing selected products in the Flymo brand as well in battery products. All of that product is not nearly as efficient as it needs to be without solid commercial plans behind it. Just briefly speaking to some of those plans, there's traditional demand creation. Just one example of this is we've started to reintroduce some investment in radio in the U. S. Marketplace. It can be a very effective medium for outdoor power equipment in the U. S. And we've seen some nice uplift from those tests. Cross selling parts and accessories with the whole goods seems like a simple thing, but not something that we've done very effectively in consumer brands over the years. And whether that's on retailer websites or even on our packaging, we're getting much better at the cross sell. Expanded assortments and improved content for e commerce is starting to pay off dividends and investments in point of sale activity are also paying some dividends in the business right now. So here's another view of what has to happen to get to the 5%. Essentially, like I said, we maintain the momentum that we've established over the last couple of years in cost out. We continue to chunk away at 2% to 3% cost out of our total cost base year on year. That's about half of where we need to go. The other half needs to come from some of the work that we're doing now to bring excitement into the product platforms, into the commercialization plans and consumer brands. We believe we can get there. The target of 5% is a tough target. The I would love to say that we had a great weather outcome in Q2 in the U. S. Marketplace and everything was going to be rosy. That threw us off a little bit of our road this year, but we are quickly regaining some of that profit momentum as we get through get into Q3 and we think that's sustainable momentum. So just to restate, broadly speaking, the road started with value before volume. We're essentially still in the late stages of that game, intend to come out of it in 2017 with some slight growth, accelerate that growth hard into 2018, continuing out the cost out journey, getting to the profitable core of this business, which are the right customer and product combinations to get our margin mix where it needs to be and then get beyond the 5% after 2018 and make this what I would call an investment grade business as a part of the group. With that, I'll hand it over to Henrik. In everything we do, we believe in change. Looking into the future, change is the only thing we can be sure about. By embracing change, we challenge ourselves and the attitudes within our industry. Change inspires us to design, develop and deliver new innovations. Around the world, we deliver equipment and tools designed for as a professional craftsman in drilling, sawing, demolition, and grinding of hard materials, like concrete, stone, and masonry. As a forward thinking market leader, we have the power to innovate and the power to stay ahead by investing purposefully in research and development. Now our engineers and craftsmen building some of the most advanced construction products in the world. We constantly improve our machines to make them stronger, lighter, more durable and more versatile. We believe that local commitment and support that's close to you when you need it is the key. That's why we're present in over 70 markets, where our skilled sales people, our service shops, and service teams will help you with Good afternoon. As you can see from the move, and now we are leaving the space of lawn and garden and forest and garden and entering the world of construction. As you all know, construction has been on a journey of profitable growth for quite some time. And that's, of course, the agenda also going forward. And just one expression trying to put words behind what we're trying to be and how we try to go about our business is really, we really want to be our customers' preferred choice that we are the people they want to deal with and that our products are the products that they want to use. So that's really our overarching ambition, to make sure that our customers have us as their preferred choice. We have a very strong foundation. We have consistently been working on that for many years. We have strong market positions on all the key markets. We are the innovation leader in the industry. We have 2 strong brands in the business and we have a highly engaged team. So we have a very strong foundation. Very much like the at least 2 of the other divisions, we work a lot on efficiency improvements, so we can continue to invest heavily into product development and into building the sales and service network that we have. I mean, our business is very service intense and really requires us out there with the customers and many times we even sell directly to the customers. So it's very important to us. 2 things that are very important as well that we want to emphasize even more in the future here is not just offering products, but also expanding more into selling service offers or having service offers. And then of course, the other piece is that we need to step up our activities in the emerging markets. Ultimately, we are a market leader today. And if we do this in a real good way, we will solidify that position. If we then look at the construction market because, I mean, as you all know, the construction market is very, very big. IHS estimated last year the construction spend in the world to $8,800,000,000,000 It's a pretty big market. And equipment is just a small part of that. And in the equipment side, you can divide it into 4 very basic segments and we operate in a small portion in one of the 4 segments. So we have a very targeted approach. So even if you have a broad offering, we have a very targeted approach in the business, really targeting the people sawing, drilling, grinding, concrete and those things very closely related to that. That market, we estimate to be somewhere just south of SEK25 billion. Our market is cyclical. I mean, Jan talked about in the beginning that we a seasonal business and it's weather dependent and so on. And that is not as prominent for construction. We are less seasonal and we are less weather dependent. But on the other hand, we are cyclical. We are very much more dependent on more financial and political aspects. We believe that our segment, this $25,000,000,000 market is slightly less than the construction market on in average. And the reason is that we are not so much into new construction, more into renovation and about half of the market is consumables. And on top of that, most of our machines even though they are expensive, they are considered small ticket items in the construction world. And those three things seems to make this segment a little bit more resilient than the construction market as an average. There are some key trends affecting our business. From a growth perspective, there are several things really supporting this business. You have the urbanization, we have the emerging markets and we also have a modest modernization in terms of work techniques where people start to work more and more with the kind of equipment that we are selling. There are other more different kinds of transport, technology trends, Internet of Things, of course, but we have stricter regulations, particularly when it comes to dust and slurry. And there is also an element where we will see more of battery in our industry as well in the future. So there are some trends that will affect us. If you look at us in this context and how we do in this market, First of all, we are a market leader. We have a share somewhere north of 15%, 16%, 17% somewhere. And that might not seem so big, but the thing is that the market is very, very fragmented. So if you look at the competitive landscape, there are only 2 competitors that we actually compete with in more than one category, whereas a lot of players playing only in one category and then there's a lot of regional and local players. So that's a little bit what this market looks like. The sales split, you can say that the construction spend, the majority is actually in rest of the world and the minority is in North America and in Europe. But our addressable market is not like that. Our addressable market is much, much heavier towards the mature markets. And that's back to a little bit the renovation piece. I mean, there's still a predominantly new construction in emerging markets and less renovation. And it's also the kinds of applications we're in, which is very much taking up a hole, taking down a wall that you still can do fairly effectively if labor is low manually. So that's just a different return on investment calculation in those markets for our kinds tasks at this point. But that will change going forward. So that's why our profile is our sales profile is much more in the mature markets, but that's also how our addressable market looks like today. Of course, we have a very, very strong customer focus. I mean, all our customers are generating revenue using our products. They are extremely dependent on us. So we need to have a very, very strong customer focus to really understand our customers' everyday life, what is generating income and what is waste. And we need to make sure we are an effective partner inside all of this. So there's a strong customer focus. At the same time, our application fits into that general light segment and that basically means that there's a lot of different customers using that kinds of products. But we try to segment it a little bit and then you say basically there's a lot of different kinds of building construction contractors, that's one group. Demolition is a slightly different group. And then we have specialty markets like rail, rescue and those kinds of markets. And then for our stone business, we have then the stone quarries and the stone processing operations. So those are our main customer segments. We serve these customer segments through 5 different channels. The main one is, of course, regular 2 step distribution, but we also have big portions sell directly to our end users. We send to rental depots that rents our end users. We sell in together with Pavel and the Forest and Garden dealers and there's a little bit of e commerce going on. If we then leave the market as such and then start to look at ourselves a little bit and sometimes it's good to reflect a little bit on the past before you start to paint the picture for the future. This is a schematic way of looking at the journey we have been on. As a group, we stepped into construction in 1981. We acquired partner to get a hold of chainsaws and we happened to get the power cutter. And that was then a very good side business for some 20 years. So that was the first phase if you would like. Then the second phase was around the millennia, we decided we want to build a position in construction. And in less than 10 years, we've made 11 acquisitions. So that was the 2nd phase. Then as we all remember, we had a global financial crisis starting in 2,008 and that was the first time in our 35 year history we actually had a reduction or the top line was coming down because it was the first time it was both a global crisis and it was a financial crisis, which hit the construction business real hard. That was actually even though us remembering that time, it was no fun, but it was a good opportunity for us to fully integrate ourselves, all the acquisitions we have done, consolidate ourselves, put the house in order and really come out strong when the market started to turn around. So I mean, in retrospect, if we really seize the opportunity to turn something good about a very challenging situation. And since then sorry, I forgot one important thing and that was in 2007, just before the recession, we did the final thing there and that was that we, for the first time, introduced the Husqvarna brand into the construction industry. We didn't have any Husqvarna branded products before. So we eliminated all acquisition brands, some 11 of them, and turned them all into Husqvarna in 2007. So that was a very, very important part in this journey. And basically since the global financial crisis, we have been growing organically in a pretty nice way. If we then look at the last few years and more from a financial perspective, you can say that our market has been up around 3% and we have been up about 5% in average over this time period. So we are taking shares in this market. At the same time, our EBIT has been up about 15%. So that's also a good thing. However, important to say even though I want to take credit for all of it, For us, a strong U. S. Dollar is a favorable thing indifferent to the Forest and Garden business. So that could be an important thing to know. So there's an element of that, of course. And then we have been working on efficiency improvements and they have partially offset the investments that we have been putting into growth, investments we have done into product development and into our sales network. So a snapshot of today then is that we feel that we have a strong foundation. We are well positioned to continue on this profitable growth journey. We are constantly being reevaluating ourselves from a where do we best spend the resources, where do we spend the money. So we have done quite some restructuring from less promising and attractive areas either markets or products and shall and what do you say, focusing it into more attractive segments. One thing that was important that we did here in the spring was that we acquired DTS or Diameter Tool Supply to really get the know how and the access to the technology on resin bond. Basically, when you the so important floor grinding segment that you also outside, when you do those last steps in polishing, you need resin based tools. And we were relying on a supplier before and now that supplier is a part of us. So it's a very important thing for a very important segment. We have launched a lot of new products. We'll cover that a little bit later on. We have also been investing a lot in the sales force. We have a lot of sales people out in the field living close to the customers. We have an iPad tool where they basically have everything at their fingertips so they can be effective in what they are doing. And in general, we have a very, very engaged team. I promised to come back to the product introductions. I will not go through them all. And believe me, I would like to, but I won't. But the key message is really that we are truly the innovation leader in our segment. It doesn't matter if it is in terms of machines or in terms of diamond tools. And now at just recently, we are also starting to expand into service offers. So down to the left there you can see UpCare, which is a program that we have where you can sign up for a service contract, so the customer knows exactly what it's going to cost him to operate our machine. You also saw something very similar to our prime system outside here with the wall saw and the blade adapter. It's quite similar. But basically, this is a very unique technology where we have taken a real step change in the market where you have this power pack in the middle and no matter what you connect it to single phase, 3 phase, you will always have maximum output into the tool and optimize for the tool. So with one versatile system, you always have maximum performance no matter what power you have in the grid and no matter what application you want to do. This is really state of the art technology that nobody else can compare to in this industry. So looking ahead then, it's all about being our customers' preferred choice. The key elements going forward is that even though we believe we have a solid foundation, we can never become complacent, we can never become content. We need to challenge ourselves every day that we are getting better and better in supporting our customers and how we run our operations. So that's one important thing. We need to continue to chase efficiency improvements so we can continue to invest in product development and in expanding our sales reach and support. And then three things that just to highlight in terms of potential growth areas, We have some segments that are even more attractive than others and that have more upside than others and we need to make sure that we give put sufficient focus on those. We need to expand into service office and we need to step into emerging market step up in emerging markets. I will cover these briefly. One segment then that is a focus segment is surface preparation that you saw a little bit outside. The segment has profitability and growth above average in our industry, clearly above average, which is a good selection criteria, of course, for our focus area. It's somewhat of an emerging segment. So even if the products and technology have been around for a long time, that kind of working and the way you make a polished floor instead of epoxy solutions, etcetera, etcetera is gaining share and is emerging. So there's an opportunity there. We are very serious about the sustainability agenda. This is just one example. The good thing with polishing a floor is that everything in concrete is just purely natural and you polish it and you get the long lasting floor. If you do epoxy, you need to add all the chemicals and you need to do all these kinds of things and you need to renovate a lot. So it's a very sustainable method. We are unique in this segment with having full internal capabilities in both machines and in diamond tools. So we are well positioned to do something about this segment. Service offers, in the end of the day, it's all about how can we provide additional customer value. We provide a lot of customer value today in terms of the products we offer and the service that we provide, but there opportunities around this. And right now, what we have launched is service contracts to up, Kera, as I mentioned, and various financing solutions. Those are the ones we have done. We see more opportunities here going forward. For instance, I mean, it's easy to speculate. I mean, you saw what Sascha was doing on Smart Garden and thing. Of course, that kind of technology could also be used in our space. The other good thing is, of course, we create additional customer value, but at the same time, we create new and repetitive revenue streams. You get the revenue stream through the life of the product. And another good opportunity that makes us well positioned in this is that for these services to be meaningful, they need to cover a wide variety of the applications and the products that your customers are using. Otherwise it becomes cumbersome where you have 10, 15 different systems or different services. So having a broad offering is actually a good enabler or a good position to be in going into service offers. And the last area then is the emerging markets. They are not so big in our segment today. They will become. We need to make sure we are ready, we are there. We need to make sure we have the right footprint from sales, service and distribution. We need to make sure we adapt our products because in the end of the day, we need to make sure that our customers have a return on investment when they buy our products and that looks different with a very different labor cost. So we need to make sure that we make that calculation work. And part of that is also that we need to help to educate on work techniques. How can you do this work differently so you can make the return on investment calculation make sense? So that's a little bit of our plans here when it comes to the emerging markets. So then, believe it or not, but now we have the last slide here. Just to summarize, we believe we have a strong position and that we can continue on a successful profitable growth journey. It's all about being our customers' preferred choice. We have a strong position in most of our markets. We have the broadest product offering. We are the innovation leaders. We have 2 strong brands with Husqvarna for Construction, Diamond Board for Stone, and we have a highly engaged and dedicated team. And after the tough years of 2,008, 2,009, we are also streamlined, consolidated and ready to go. So we believe that we have a bright future ahead of us here. So with that, I conclude my and I guess I can hand over to Jeff for the Q and A, I guess. And Sascha and Paul, please. Okay, all of us. Yes. Okay. Christian Manekold from DNB again. A question on the consumer brand division. You talked that you were a couple of years behind the other divisions when it comes to automation. Can you give some numbers on how much is automated or how much automation do you have in Husqvarna division, for instance, compared to your division? Is that possible to quantify in some way? I don't it would be tough to quantify, I think. Only because there's not I guess, first thing to realize is that the type of operations are little different. As an example, I think a lot of Pavel's business in Sweden where he's got a lot of automation is a lot of handheld product, professional grade handheld product. And a lot of my operations are more consumer grade mid price point wheeled products that come out of the U. S. Factories. So the nature of the factories are a little bit different. Also the seasonality is a little bit different. So it's a tough comparison. So but I mean, I think the main message is that we haven't invested as much on the U. S. Side. We are starting to catch up with some of those investments and we think that the payoff can be fairly quick, especially when it comes to automated guided vehicles. And also one thing I didn't mention is that some of the automated deck stamping that we're starting to do now is in parts of our factories that are not the safest parts of our factory. And so, it's nice to get human factors out of those operations and get machines into them. So it's another offsetting benefit. And secondly, what do you think is the main risk for not reaching 5% EBIT margin apart from just weather? Yes, yes. Is the usual suspects, right? There is currency, there is weather. I think that although we believe that we are in a good channel position to offset some of this, if there were a large customer bankruptcy or exit exit from the category in one of our main markets, that would be a tough recovery to do in 1 year. That may take a couple of years to pull out of, but I think that's probably also another risk factor. Okay. And then finally, I'll ask the question maybe to Kai. When it comes to or maybe it's not you, but I say it, I hope it's you. When it comes to the launch of robotics in North America, what were the lessons that you learned from this year? And what can you do differently next year in order to really ramp up? Sorry, didn't I miss it? The launch in North America has been based very much on the experience that we've had in other markets, primarily first, so to say. And that is to be selective to really find the right target customers where we think the product will fit and also, of course, to have a, should we say, an acceptance and the request from our dealers and, of course, supporting that very much with technical support. So we have started in small scale in the U. S. To make sure that we are successful there. And what will you do next year? And going forward, we will really ramp it up? We will expand. Step by step, we will, of course, expand this. And the potential here, how big do you think the market is? How big do you think the potential is? You know the U. S. It's a large country. So it is I would say you have equal potentials on both sides of the Atlantic. Thanks. Thank you for taking my question. Nathalie Falcova from Carnegie. Just when you add new features to the products, how do you think about pricing? Is that to sustain the current price level or are you actually able to increase it and for how long? It's a very generic question and you will have many different answers to it. I think we normally talk about stable pricing, meaning that we are capable to maintain and that probably includes a certain amount of feature addition to defend the positions. But of course, there are occasions, Sasha talked about his generations of water coupling houses, etcetera, where you have an opportunity to do a bit more potentially new technology. I mean, it's a very tricky question to be specific about. That's sustaining. But we're talking about stable pricing by and large. Just also a question on emerging markets, also maybe a generic question, but how different are the distribution and the channels of approaching distribution channels supporting them in emerging markets versus developed markets? I suggest we'll let Pavel and Henrik talk. Yes. Of course, there is a difference in the, should we say, in the commercial ability of the distribution channel in the emerging markets. For sure there is. They are not as highly developed. They are starting out with this and we put in a lot of education. And I would say also that in some of the emerging markets, which are geographically very vast, also it's a question to build up the network fast enough, but also support with the logistics. So it is not on the same level as we see today in West Europe or in the U. S. But again, it's moving fast as the economic development in those countries is moving fast and also the distribution abilities is moving faster. Feel that you need to be more generous with the discounts towards emerging markets distribution? That is not really a question that I see related to whether the dealers as such are well developed. I mean, of course, on a technical level, I would say that the products are different that we are selling initially on emerging markets. It's entry level products. A professional in China, for example, or Southeast Asia is using a mid pro product and see that as a truly professional product or even an open price point product and sees that as. So it is more a question to make sure that we have the appropriate assortment for the appropriate market and move the customer up. As the country develops, as the purchase power develops, we move our customers upstream our products. I don't really have anything to add. I think you described it well. Maybe just last question. On the construction, if you were to add something through an acquisition, what would that be? Could you give a geography and maybe some application of product? I mean, generally speaking, I guess the straight answer is no. But I think the key for us though is that we have built a core. So even though we have a fairly wide range, we are very, what you say, focused on a certain customer base and certain applications. So I think if we would build through acquisition or organically, we will try to do it close to that core and not spread ourselves too thin. So no matter if it's an organic or a M and A thing, we would try to build something that really makes sense together with the other things we have. Right. Hi. Rasmus with Handelsbanken again. I have a question first for Sascha. You had a fantastic 12 months now, which basically start to some extent with the extremely long summer last year, which sort of depleted inventories and so on. So from an outside perspective, it's very, very difficult to know what we should be thinking in the coming sort of 12 months. Are you sort of comfortable with feeling that you continue to grow? Or did you have 3 years growth in 12 months' time and we're sort of need to recover that? Or how should we really think about that? It is obviously the case that we had a spectacular summer last year in Continental Europe and this had also some windfall effect coming into this year, of course, plus some other one time effects. But we and I think you've seen some of this. We've also seen some strong underlying improvements to really drive the growth platform. And we are confident that this will also carry us through the next years. Thank you. And then I have a question for Jeff. Did I understand it correctly that the entire sales decline is in private label? No. Okay. It was just a dramatic picture. Yes. No, it's been fairly even across the business. No, that chart was more about our shift over the last 18 months or so from private label into our own brands. Can you say something about where your gross margins have sort of what have they sort of reached? I know they were just about double digits originally. Have you managed to improve them significantly? Is that what we're seeing? I can't say anything specific. Although, I would say the improvements that we have seen in margins and gross margins largely have come as a result of mix effect that we're starting to see the beginning stages of as well as some of that cost out activity. In order to sustain the path and get to the 5% target though, we've got to start to add in some growth elements to the business to augment those first two factors, and that will drive margins higher. But so far, basically, the improvement in the EBIT margin is basically the improvement in the gross margin, I would assume? Yes. Most of it. Yes. Yes. Bjorn Danske, question on for Husqvarna and the aftermarket business, if you can shed some light of the size of that business and also the chainsaw chains launch that you now have had And what kind of impact that will have on the aftermarket business, if that will be substantial? And if you could also comment on the return on investment requirements for that investment as well? So the aftermarket, roughly our measurement on the aftermarket relating to my business is approximately around 20%. We have an under average market share as we also communicated long term investment into the own long term investment into the own salt chain development and salt chain factory. So both of these are, I would say, a combination for us to be able to grow our market share in this area. The investment is large. You know about it since earlier. We see that it will give us a payoff over mid term, long term range basically. Thank you. And the second question also for you is on the emerging markets and we touched upon it earlier here. Is it possible or is it an intention to reduce seasonality through an expansion in emerging markets? And is it possible to get better load in your current plants through these? Or do you need to have other plants or other sourcing for those markets? No, I think you're reasoning correctly in the way that the emerging markets, especially if you look around the equator where they have an all year around season, of course, they give us that full year season and ability to sell. However, in our case, the emerging markets is still a small part. It's a low double digit number out of our total sales. So it doesn't really give us that quickly that effect, as you say. Over time, yes, it will improve and balance out the seasonality, but not from an organic perspective or in a short time. Thanks. Hi, this is Johan Eliason, Kepler Cheuvreux. A question on Husqvarna to Pavel. You mentioned focus on the servicing dealer network, and I think you mentioned the number of 25,000 in the network here. And I've been sort of following this company for more than a decade, and there's always been this focus on service and dealer, and I sort of recognize the 25,000 dealers as well in the network. What's the mechanics behind this sort of number looking for, if I remember the numbers correctly, fairly stable? Is it so that you are gaining servicing dealers, but at the same time there are fewer services dealers as they lose out to the big box retailer? Or how does the mathematics work here? Why doesn't this number grow 30,000 over a decade basically? Yes. I think it is so that we do work actively with our dealers in the way that we try to develop them. At the same time, we see that some dealers are not performing well and then it can be an active decision from us to take them out. In some cases, also dealers decide to leave us for whatever reason that may be, so to say, over time. But in general, we see that we are, so to say, increasing the number of dealers on a net basis slightly, but not that much. That's why the number you say also is pretty much similar. And I think our largest opportunity also, as I mentioned, is to really start to establish the dealers in the urban areas, which we have not focused on earlier. Is that something that you've seen Stihl doing already? Or is this a new way to attack this problematic? No. I think we haven't really seen Stihl making a very clear and active role in putting themselves more in the urban areas as such. What we have seen is that Stihl is acting partly into some retail, but not into specific dealer like distribution channel in the urban areas. And then talking about retailers, but then for consumer brands, could you sort of give us an update on the North American who's sort of losing out? What's your biggest exposure these days? I mean, there's been a big shift since Paul Cook's times, I think, over the last decade. Again, it would be I would be out of place to talk about specific retailers. We as I mentioned earlier, though, we are seeing some shifting going on, both in wheeled and handheld, as a result of some at risk retailers starting to close some stores. And we are seeing that volume shifting primarily to mass and to big box DIY and probably to some degree into the dealer channel although it's tougher to measure that movement. But is this trend for your category similar to sort of the overall trend we are seeing? Yes. Could you stay away on the cyclicality of construction? Is the business mix different from where it was in 2,000 and 2,008 when we entered the drop? I mean, how do you see this business into a construction downturn, please? I mean, the biggest year, so to speak, was in 2007. That was a peak for us in our market segment. And at that time, we estimated the market to be bigger than the SEK25 1,000,000,000 or south of SEK25 1,000,000,000 that we now think. So the market has not yet fully recovered back to 2,007. Then of course, I mean to speculate in where it's heading in the future, including Brexit and other things, it's very difficult for time being, of course. But the market has not come back to where it was before the crisis. You reported separately, but I don't what was your margin at the peak in 2,000,000,000, the peak margin? If I recall, I think it was 13 point something, low 13%, if I remember. Probably others in here will know as well. And the mix was like fifty-fifty? Mix of what? Aftermarket and new business. Yes, that was pretty much the same at that point, yes. Okay. Thank you. This is Michael Busch from Swedbank. Question for Jeff. I'm curious about having a closer look geographically at the U. S. Are there any particular parts of the U. S. That you find are underdeveloped in terms of penetration or on particular areas where you feel a lot more well established? Honestly, the U. S. Marketplace, I think is it's so developed relative to our categories that I would say it's fairly stable honestly. I mean, one of the things that I think the whole industry is watching very closely in the U. S. Is what goes on in the West Coast in terms of water restrictions and some of the drag that we see at retail because of that on our products, but that's industry wide. I think other than that, a lot of our sales strengths geographically in the U. S. Follow where we have good solid channel penetration. Just one follow on question. Obviously, with the launch of robotic mowers in the U. S. Under the Husqvarna brand, that's one push. Do you, as a company, make any implicit linkages between McCullough Technology being taken from Husqvarna? Are consumers aware of the linkages? And if not, should they be? Do you see any benefits of basically letting the market know that McCullough is, should we say a cheaper or more cost less costly option to Husqvarna? It's difficult to say. It's obviously it's a new product in a market which is fairly entrenched with ride on mowers and different setup. I'll start it and then Pablo, if you have a comment. I mean, I robotic mowers, especially in the North American market are so new that I think consumers making any connections at all, just it's just not happening yet. I can't speak as much to the European market. I mean, Sascha and Pavel, maybe if you guys have a comment on that market where you're stronger? I think I can say that I first of all, I think it's the right move from our side to make sure that we are available in all the sales channels with the robotic mowers. There is no doubt about that. The customers are requesting this and we need to be where the customers are shopping. We do take we do share some technological aspects of the platforms, but we also try to differentiate the products very much with different features so that they are not perceived as being the same. And they have different features, which means that if you pay a certain amount for 1, you get a certain amount of features. You pay twice the price, you actually also get, I wouldn't say twice the features, but you get another set of features, which is there. As to your question whether we would like to market it so that Makalok is a, let's say, low cost Husqvarna, no, we don't want to market it like that. Whether the customers will know it, well, I think some customers understand based on the websites, there are some of the connections that they see that we are one joint company, so to say, operating under separate brands. It can also be the marking on the product. So in some cases, they can. But in general, my understanding is that that's not the case that the customers know or take granted that it's a Husqvarna if they buy a Gardena product. Yes. Another follow-up from Swedbank, Anders Schouffsland. The consumer brand, 50% of the margin increase up to the 5% is coming from new products. Is it mostly robotics or are there other areas you will? So let me clarify just in case that didn't read through correctly. It's that 50% is not all new product, okay. So that's called capturing new market opportunities. So there is a piece of that that's new product. There is a piece of it that is continued mix up in margin and there is a piece of it that is actually price. And so it's a combination of all three really to get there. So in the new product piece of it will, I would say, we want to primarily make it a story around robotics and 0 turn mowers and battery product. I think those are areas that we're going to lean on hard. But we've got as our margins continue to improve and what I'd call our core ranges, we want to lean hard on some of those categories as well to get some of that. And that's I referred to that small I innovation Like you'll see more of that in areas like push mowers and tractors and basic handheld product. Okay. Thanks. Just one question about the balance sheet. So with the deleveraging we're seeing in the company, at what point is the right point to address sort of the under leverage nature of the balance sheet that is approaching, especially if nothing is imminent in the M and A pipeline? Well, I assume that's a question for the shareholders and the Board to take to decide upon. But of course, we intend to follow the trajectory of improved margins and improved balance sheet. So we have said, if it's not for growth, then of course, the normal in the normal situation is to change the capital structure back to more leverage. But let's see how this evolves over the time. It's Rasmus again with Handelsbanken. Just now that we're switching sort of towards more growth, I just had a question for Kai maybe At the 2.5% average that we've had in the last few years of growth, what's actually been the volume? Has it been the same? Has it been 0 or negative? I mean, I'm just broadly speaking, what's your guess? It's probably been rather slightly down on an aggregated level, so higher value. A question for Gardena and the ongoing initiatives to improve or to expand the offering and then you have been doing that for some time, but is it the kind of a step change that we're seeing right now in the expansion? You mean from a product perspective? Yes. In a volume perspective, I mean, are you addressing more and more markets a little bit more aggressively now? Yes. Of course, we're stepping up. I hope that became clear both from how we address geographic expansion and also how we address innovation. Now of course and innovation, of course, is a nice benefit because it benefits all markets immediately as we move into additional categories on new products. But also be real that innovation doesn't happen overnight. So of course, yes, we're investing more, but I think we will see gradual benefits coming from it. And we see some of them already. Yes. It's been fantastic. But have you been sacrificing margin for growth? And will we see more of that going forward? Should we expect a little bit weaker operating leverage on growth near term? Well, right now, you've seen, I think, a very nice margin improvement, first of all, while it's growing. But I think we are at a quite good level now. And if we can keep this why growing, I think we deliver exactly the right balance, I would think about it this way. Thank you. And last one. And on the geographical expansion within Europe, do you foresee that you can do that expansion for many, many years to come? It is quite a big area and you are not mainly focused in the center part of it. Yes. I think for the time frame we are talking about, I think this is still a sufficient opportunity for us. Thank you. So I don't think that we have any more questions. Okay. Thank you very much for your attention today. I will not make a long summing up. I will be rather swift. You will have heard about how we deliver good results in the profitability focus phase. You will by now be pretty well aware of that we are at a turning point, really starting to talk about profitable growth. And I guess a relevant question is then have we created the conditions for this profitable growth? Yes, think the answer from our side is we believe so. We have the right structure. And I think you also realize when you listen to the agendas of these gentlemen that they are quite different and they are quite different end customers that they're trying to target. And by having this right focus now, we create the conditions for growing and for growing hopefully profitably. You heard about the strategic initiatives, you have heard about the plans that underpin them and we are in varying degree into those, may that be 18 months or 6 months, but at least sufficiently far into it to have the confidence to talk to you about it. You have heard about the financing of them and how we will press ahead. That's how we have dealt with it this year. This is also how we intend to deal with it for next year. So on top of these efforts that we have done in 2016, we are at least from a planning perspective wanting to repeat that for next year built on the strong momentum of further measures for efficiency improvements. So with that, it's becoming quite a significant amount of investments into profitable growth that should yield. That's where we are. And I think you've seen the team. I'm really proud that the team has been up and talked to you. I think that was the highlight of the day and you also hopefully got a sense for their pride and their determination to make this a success. So that's where we are right now. And I think I'll leave it there. Thank you very much for your attention and leave maybe for Tobias for the last word. One final, final word. We have a small gift for you, so please don't forget to take that as you leave. It's on the theme of sustainability and it's perhaps not the most sustainable, but one of the most sustainable fire starters that you can actually find. And there's a really interesting story behind that product, which you can read more about in the little box. So with that, thank you so much for coming everyone and hope to see you

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