Hello, welcome back to ABG Investor Days. My name is Adnan Gilani, I'm an equity research analyst here at ABG. Up next on the agenda is a presentation from SinterCast, the presentation will be given by Steve Dawson, the President and CEO at SinterCast. He will give a roughly 20-or-so-minute presentation, hopefully we'll have time to round off with some Q&A after that. With that being said, Steve, I'll hand it off to you.
Okay. Thank you, Adnan. Good morning. This is our fifth time to present at the December Investor Day, so many of you will be familiar with the SinterCast story. Let me begin with a short introduction. We are the industry leader for this new type of iron called Compacted Graphite Iron. Compacted Graphite Iron is stronger and stiffer than the conventional iron, but it's only stable over a narrow production range, and therefore it's difficult to produce. That difficulty is our market opportunity. We've developed a technology to control the production of Compacted Graphite Iron, and in the foundry, it makes for more efficient manufacturing, so lower scrap, lower waste, lower energy consumption and therefore, of course, lower CO2, and also increased profitability for the foundry.
On the road, our stronger and stiffer material makes more efficient engines, so the car and truck companies can push their engines harder to get more performance from a smaller engine package, and that means less fuel consumption and again, less CO2 emissions. We started our high-volume production in 2003, and our business has grown continuously since then, so this year our technology will be used for the production of more than 1.5 million engines. We had our first full-year profit in 2006. Of course, the economic crisis in 2008 and 2009. We returned to profitability in 2010, gave our first dividend in 2011, and we've been giving an increasing ordinary dividend since then.
We have double-digit growth in our history, and we also have an outlook for double-digit growth in our future. Let's begin with our business model, importantly, how we get paid. In the bottom of this slide, you can see our basic equipment. Most of our foundries that are in series production have a more comprehensive, larger installation. We sell or sometimes lease the hardware, but the vast majority of it is sold. We don't sell the software. We retain ownership of the software, and we provide an annual license fee for the use of the software. Most of our revenue comes from the series production, we sell a sampling consumable, which is used, one for each pot of iron that travels through the foundry. We also charge a running production fee.
Each time the foundry ships 1 ton of castings, they send us a payment for the use of the technology. We are paid on a weight basis. Like all companies, we provide engineering service and spare parts, and we also spend a lot of time to support new product development and prototyping to motivate and grow the CGI market. Let's look at a small video of how our technology is used in the foundry. Here we're putting the sampling cup, the consumable, on the analyzing head of our equipment. Green light means ready to go. The operator takes a spoon of iron from the ladle, lifts it over our sampling cup for two or three seconds, and now the iron sits in the sampling cup for about three minutes to solidify.
At the end of the solidification, we know how the material will solidify. That gives us an opportunity to adjust or to correct the iron in the ladle before it's cast so that we know that all of the castings produced will be within this narrow specification window. It's also important to understand how we count. I said earlier that we're paid on a weight basis, but we have about 60 castings in series production today with a large variety of sizes. Our smallest castings are exhaust manifolds or turbocharger housings. They weigh about 5 kg each. For passenger vehicles, we make the cylinder block, which ranges from about 50 kilos up to 150 kilos. For commercial vehicles, we make both the top part of the engine, the cylinder head, and also the cylinder block.
If we only do the cylinder head, the weight will be about 150 k. If we only do the cylinder block, it will be about 300 k. When we do both, it's about 450 kilograms per commercial vehicle. In the industrial power, the off-road sector, again, a variety of castings ranging from about 10 kg per piece up to more than 2,000 kg for these large cylinder liners that are used in marine applications. It's meaningless to talk about the number of castings, and I think it's also difficult to talk about the tons of castings because it's very difficult to visualize a ton of castings. We've introduced this term called Engine Equivalent, and we've said that each engine weighs 50 kg.
The reason for that is that the weight of an engine block in an average passenger car out on the roads is about 50 kilograms. Each time SinterCast has one engine equivalent, you can think about one normal passenger car on the road. Our current production is over 3.5 million engine equivalents. Again, think about 3.5 million vehicles out on the road. Here in Sweden this year, we will sell about 350,000 new cars. You see that our current production, it satisfies every definition of high volume production. Our technology is accepted and proven in the industry. The total vehicle fleet, all registered vehicles in Sweden, is about 5 million. Indeed, we have said that we will grow and that we hope to reach the 5 million milestone in 2024.
You can think of SinterCast producing each year enough engines to replace the entire Swedish vehicle fleet. With that as background, let's look at where we are today, this plot shows our production from 2008 until today. I wanted to show a really longer time period to show the growth trend, it's more or less linear. You see that there are a few bumps in the road. In 2009, we had the economic crisis, new programs came on stream, we grew. In 2012, 2013, one of our higher volume programs came to end of life, stopped production, our volume decreased, new programs came on stream, we grow again. It happens that programs come to end of life.
You see in 2018 and again in 2019, additional new programs coming on stream, strong growth. We have this sharp spike from the COVID shutdowns, and after that, a recovery. That's a mix of market recovery and new programs coming on stream. Today, our production is 3.6 million Engine Equivalents currently. You can see that that is above the pre-COVID peak. So far this year, each of the first three quarters have set quarterly records. Our production is at an all-time high. If you do the math over this long development period, we have 12.5% compounded annual growth rate since 2008. Coincidentally, for the first three quarters of this year, we're also up 12.5% on the first three quarters of 2021.
If you add it up from the start of our production back in 2003 until today, we've produced the equivalent of 30 million cars. Again, satisfying every definition of high-volume production. We can change from our production volume to production revenue. This again shows a rather continuous increase in the production revenue. 2017 was a bit low. We had a lower year for installation revenue. 2020, of course, a bit low because of COVID. So far, for the first three quarters of this year, we've had SEK 85.8 million revenue. If you do the pro-rata math, that brings us up to around SEK 115 million by year-end, and it will be more or less at the same level as 2019. Let's put the revenue into perspective.
If we have a revenue of something between SEK 115 million-SEK 120 million, and we have production of 3.5 million Engine Equivalents per year, it's SEK 30 per Engine Equivalent. When Ford, our largest customer, sells an F-150 with our 2.7-liter V6 gasoline engine, they pay us about $3. Really good value for the OEM and a really strong multiplier for SinterCast with our high volume production. We have 32 employees. Again, with SEK 115 million of revenue, it means a revenue of about SEK 3 million per employee. Our net profit, depending on the year and the product mix, is between 30%-35%. That also means that we have a net profit of about SEK 1 million per employee.
That will grow because our market is gonna grow faster than the cost side and faster than our head count. That's SinterCast, double-digit growth, 30%-35% profit, and profit of SEK 1 million per employee. It's a really strong, positive business. We can also extrapolate from the revenue to the dividend. You see in the red bars our ordinary dividends. It's been a continuous growth since we started in 2011. A little bit of a pause for the COVID year in 2020. So far, we have transferred SEK 243 million to our shareholders. As the business matures and we become more confident, we have reduced the liquidity.
In fact, we've given 108% of the operating result between 2010 and 2021. Again, that's SinterCast. It's a dividend company. Our philosophy is that we grow the business, and we serve as a cash funnel to transfer the excess funds to our shareholders. Let's look at the current production and the production outlook. We begin with our two largest sectors, commercial vehicles and Super Duty pickups in the US. We've said for a long time that commercial vehicles will be our strongest growth opportunity, and in the last years they have been, and they will be in the next years. Today in North America and Europe, approximately 98% of long-haul heavy duty trucks use diesel engines. There's a lot of discussions about alternative technologies. What will come next? Will it be battery electric?
Will it be fuel cell? Or will it be an engine like we have today running on cleaner fuels, perhaps, renewable diesel or zero-carbon fuels or hydrogen? I think that that's still to play for. Our production has increased over the last years, even if it goes from 100 today, down to 80. The forecasts say that commercial vehicle production may be about 85% diesel in 2030 and perhaps 80% diesel by 2035. Even if the market decreases from 100 down to 80, our market doesn't decrease because today, more than half of the commercial vehicle engines are produced in conventional iron. By 2030, most of them will be produced in CGI, our market will actually grow.
We see this not only as a growth market, but a long-term stable contributor. For the Super Duty sector in the United States, there's a lot of discussion also for passenger vehicles about electrification, but I wanted to show this news clipping from Automotive News. It's one of the largest trade journals in our industry. It's just from October of this year, they're talking about the Super Duties not using electrification. There's a very strong quote from the president of Ford, he says, "If you're pulling 10,000 pounds," so 5 tons, "If you're pulling 10,000 pounds, an electric truck is not the right solution, and 95% of our customers tow more than 10,000 pounds." This will be a long-term stable sector for the diesel engine.
You may also note that California sets emissions legislation in the U.S., 13 of the states follow California. California has talked about banning the internal combustion engine in 2035, their rulemaking excludes Super Duty, yeah. Even the people who make the rules know that it doesn't work for these large engines and the way that they're used. Again, we see a long-term stable opportunity for the diesel engine in this sector. For full-size pickups, which make up about 10% of our production, our engine is a 2.7-L V6. It's the smallest and most fuel-efficient engine in F-150, therefore it's logical that it will have the longest timeline. Indeed, since this engine was launched in 2014, we've had very strong growth. It's now being applied in new vehicles.
It's in the Explorer and also in the new Bronco. We're producing more than 1,000 engines per day, that production will increase. Looking at the last two sectors, passenger vehicles. A year ago, we thought that perhaps the passenger vehicle sector would sundown, the production would stop toward the end of this decade, and that's changed recently. You may have seen that Ford has committed to moving the production of our engine for the passenger cars, the three-liter V6, from the U.K. to South Africa and to Argentina. They've made new investment to continue the production. This engine is used for the Ford Ranger and the Volkswagen Amarok. Those pickups are made in a joint production facility between Ford and Volkswagen. The engine is very popular. The demand for pickups in Africa, Southeast Asia, and Latin America is very strong.
Indeed, we see now this sector going well beyond 2030. In fact, it won't go to zero, and I think that we can expect to maintain at least half of the production. The off-road sector, it also has a need for CGI. It's a good contributor to our volume, but the fact is that it's a smaller market. If Sweden sells 350,000 passenger vehicles per year, how many trains and tractors do you think that it sells? Yeah. There's a need for the product, but it will always be smaller. Before we wrap up, let's look at how we contribute. This means to society and to the environment, again, focusing on our three largest sectors.
For commercial vehicles, just last week, Scania announced that their new 13-liter engine, which uses SinterCast for the cylinder head and the cylinder block, has 8% better fuel economy than its previous generation engine. We can go through a math sequence. Those large engines tend to run about 120,000 km per year. They consume between 25 and 30 liters of fuel per 100 km, that means that we save about 2,500 L of fuel per year for each vehicle. Every liter of diesel generates 2.4 kg of CO2, that means we save 6,000 or 6 tons of CO2 per vehicle every year. This year, SinterCast technology will be used to support the production of between 150,000 and 175,000 trucks.
If you multiply, it's 1 million tons of CO2 per year we're contributing to that. On the Super Duty side, there's a diesel engine option and a petrol engine option. We do the diesel, and the way those vehicles are used, the diesel operators usually save about 1,000 liters per fuel compared to the petrol engines. Today, we're producing 1,000 of these engines every day. You do the same math as we have in the first column. Again, 1 million tons of CO2 saved per year. On the full size pickup trucks, as I mentioned earlier, there are five different engine options for F-150. Our engine is the smallest, the lightest, and the most fuel efficient.
Just last month, Ford made a statement saying that their current F-150 lineup is 27% less greenhouse gas emissions than it was in the year 2000. Again, we're a part of that. We're contributing to that. If you put it in perspective, Sweden in total produces about 40 million tons of CO2 per year. The transport sector is responsible for about 15 million tons per year, and heavy duty trucks 3.1 million tons per year. You can see that we're making a really large and powerful contribution. Finally to wrap up, let's look at where we're going. I said earlier that our current production is at 3.6 million Engine Equivalents per year. We had previously said that we target to reach 4 million by the end of the year. It's now looking that we won't reach that target.
We understand the background for it. This is an extract from the U.S. vehicle sales statistics for second and third quarter. We see that the Ford Super Duty, again, the highest selling vehicle of the four Super Duty trucks. In the second quarter, they sold 38,000, and in the third quarter, only 20,000. There's two reasons for that. One was semiconductor supply, and the other is that Ford is now changing over to the 2023 model year, so they had a lower period in the production during third quarter, and that affected us by about 300,000 Engine Equivalents. Yeah. We could well have been around 3.9 million.
I mentioned that the semiconductor supply continues to affect the market. Again, this is a quote from Automotive News just from last week. We can see in the box at the beginning, they say that 2022 will end with a loss of nearly 4 million cars because of the semiconductor shortage. The world makes about 100 million vehicles per year, so that's a loss of about 5%. At the bottom of the box, you can see that last year the number of lost vehicles was 10.5 million. You can think that we had about half of the recovery this year, but we'll also benefit from the other half of the market recovery next year. Next year we foresee that we will return to normal installation revenue.
Our average for installation revenue is about SEK 8 million per year. At the three-quarter point this year, we only had SEK 1.9 million. During the COVID time, the foundries were very conservative about new investment, so we didn't have a lot of commitments leading into this year, but we see that that has returned. We've already made an announcement for a new installation at Dongfeng, in China. There are other discussions going on for new installations, and I think we'll get a recovery effect. I think that in 2023 and 2024, we can expect to be at the average or perhaps a bit better. Finally, we published that we target to reach the 5 million Engine Equivalent milestone in 2024, and that remains intact.
As I said earlier, we have double-digit growth in our history, and we look forward to double-digit growth in our future. Thank you.
Okay, perfect. Thank you for that presentation. I'll go ahead with some Q&A, and we'll probably only have time for one or two questions. I'll start off with some recent news flow from one of your customers, DAF, who announced a few new engine models fairly recently. Can you just talk about are these using CGI, or how does that fit into your 5 million production plan?
Yeah, good question. Thank you. In October, DAF did make an announcement that their new five-liter and seven-liter engines would be produced in CGI. We have a policy that, if we make a new engine, we will announce it, and we didn't comment on that, so you can conclude that it's not SinterCast, so it doesn't factor into the SEK 5 million. That press release caught us by surprise as well and indeed, I'm not aware that those engines are in fact produced in CGI.
Okay. In that case, a final question and a follow-up on that one regarding the 5 million Engine Equivalent target. That's for 2024. Looking ahead further, you talked about the market growing into 2030. Where's sort of the ceiling for where CGI can reach? Is it 7 million, 10 million, 20 million Engine Equivalents?
Yeah. We talk about 2024 and 2025 because in the auto industry you have a three-year order book, so we can see that really well. We'll continue to extend out our forecast. You saw earlier this year we announced a new petrol engine application where we have a cast iron engine that has the same weight as aluminum, and that's really exciting because that can open up the passenger vehicle market for us. As passenger vehicles go more and more toward electrification, they need a really inexpensive small combustion engine as a range extender or a hybrid, and I think we have a really good play there. That could really change the addressable market for us.
I think that, staying with the main categories that I showed in the presentation, we can get to 7 million, perhaps beyond, for 2030. If that engine concept where the CGI is the same weight of aluminum is embraced by the industry, it really opens up a bigger question.
Okay, perfect. With that, I think we have to round off and I'll just leave it up to you for some final remarks before we end off.
Yeah. As I say, SinterCast, double-digit growth, dividend play, strong profitability and a really positive future with growth and stability, well beyond 2030.
Perfect. Thank you.
Thank you.