Sulzer AG (SWX:SUN)

CMD 2021

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Jun 15, 2021

Good morning. It's a pleasure to be with you today. I'm Gregor Puguillaume. I'm the CEO of Solter. And my colleagues and I will walk you through today a pretty full day. We'll start with a morning session on Medmix starting now, And we'll follow-up this afternoon by a 1:30 session on Solter, where we'll talk about the prospects for the Solter Flow Control business. With no further ado, the disclaimer and let me walk you through a few slides before I hand over to Gers and his team to talk about minnx. Solter has been around since 18/34. We've been a technology incubator for 200 years. And what you can see on this page is that we have pioneered a number of citing very differentiated and very technical businesses over 200 years. And our modus operandi has usually been to innovate, to launch businesses, to take them to a certain level where they become especially self sufficient. And we either continue with them if we feel that we're the best owner or we spin them out or sell them or do IPOs so that they can continue their own development. And as you can see on this page, Pretty much everything that we have started has been successful and all these businesses are still around today. If I try to I'm sorry, I went back. If I try to walk you through the transaction rationale, we have 2 businesses within Solter. We have a very large flow control business that we'll call Solter in this presentation. And it's an industrial flow control specialist that's focused on water, Chemicals Industry and Energy. We're the global leader in many of these markets. We're shifting progressively our portfolio towards water and industrial applications and pumps. We're a leader in chemicals in separation, but we are increasingly growing in biopolymers and recycling technologies. And we have a wonderful service business that is actually 50% or more of the company and highly resilient and high margin. That's Solter in a nutshell. Now, MENMIX, which is part of Solter today is what we will now call our applicator systems division. And Medmix is a highly innovative high precision delivery device business. We have leading positions in dental and pharma, adhesives and beauty. More than 50% of our sales are backed by Solter owned IP. So we're not a contract manufacturer. We're really an innovator. And that business capitalizes on attractive megatrends and operates in markets that are usually niche markets that have high barriers to entry and therefore lower price sensitivity. The business is today 40% healthcare and is increasingly shifting towards healthcare. Midterm will be about 50% healthcare. Now why do the spin off of Medmix now? Well, those of you who follow Solter or have followed Solter for the last few years Know that it's always been part of our strategy to make applicator systems independent at one point or another. We've been very explicit about that. And we decided at this moment is now. The reasons are very simple. We had three conditions that we wanted to fill before we took the applicator business separate before we made it independent. The first one is we wanted to have a strong platform for growth in healthcare. And we did that through the acquisition of Hasselmeyer last year. And that's going really well. And we believe we have very strong Perspectives in that business and Gert will talk more about that in this presentation. We wanted to have the operational transformation of Beauty completed. As you know, we were closing a factory in Germany. We were extending another one and bringing in a number of capabilities in house. And Jenny will walk you through that in the presentation a little bit later. We wanted to have strong recovery in all the med mix segments. And actually we've achieved that. The business has been going really strong since the low of the Q2 in 2020 where dentists were closed and retailers were closed and the business was operating at a reduced rate. But ever since the summer, it's been going very strongly and we'll show you some numbers to back that. And finally, there was a source of reason too. We felt that it was the right time to increase our capital allocation Towards the vectors of growth that we have in our Flow Control business, the Water business, the Industry Pump business and the Renewable Technologies segment in Chemtech. We are very excited about all these opportunities and capital is needed and now is the time to essentially make these businesses separate so they can continue a life of their own and I would say a successful life of their own. So how does the transaction work? Well, it's quite simple. It's a symmetrical split. It's a symmetrical split, which is combined with a capital increase within Medmix, not within Solter, within Medmix. So what we'll do essentially is investors will Wake up one morning and in their custodian account, instead of having a Solter share, they'll have a Solter share and a Medmixed share. It's essentially a split where we split the balance sheets and it goes to the same shareholders. So it's really important for everybody to understand that there is no residual ownership of Soldier in Medmix. We don't retain as Soldier an ownership in Medmix. This is not a fleet to ship strategy. This is really a split where Solter shareholders at a moment of time our shareholders of Solter and our shareholders of applicator systems, which becomes Medmix. And it's only a moment of time because we combined that with the capital increase in Medmix, which we're calibrating for CHF200 1,000,000 to CHF300 1,000,000. And that capital increase is open to everybody obviously, but does not come with preferential subscription rights, which means that we're bringing in new investors, some of the old investors too, But we will have this open to new investors. And the aim is to diversify the investment the investor base in Medmix towards health care investors also and to essentially extend the free float. What you'll have is 2 businesses, Solter and MENMIX both of them public traded both of them on the Swiss Stock Exchange, SIX. And the transaction will happen a little bit later in the year as I'll show you in a second. So the capital increase, the transaction rationale of the capital increase. We need a capital increase to fund growth initiatives. We believe that we have a good potential for continuing our small to medium size acquisition strategy and Menmix, Gies will talk about that. We also believe that it's the right moment to increase the free float and trading liquidity as the business We'll be, I think, a very exciting business and deserves a larger free float to generate investor interest. And as I said earlier, we want to provide an opportunity for healthcare focused investors to come in at the time of the listing. Our largest shareholder in Solter, Tvel, which has 48.8% of Solter will not participate in the capital increase and therefore this We'll increase the free flow of Medmix. Let's talk timing now. Well, timing is we've got Anxtet, which is our first half results on the 22nd July. Then we will call for an extraordinary shareholder meeting sometime in August. And the extraordinary shareholder meeting will be held sometime in September probably. And so we're talking mid to late September. And then this will be followed up by the spin off in the capital increase and the 1st day of trading of Medmix. We say in the second half of the year, but it's likely to be in the last weeks of September, 1st weeks of October. That's the timing. I believe it's a really exciting opportunity for Solter and an exciting opportunity for Medmix. And I will now hand over to Gert Zimmermann, the CEO of Medmix and his team to walk you through the business. Thank you. Yes, over to you. Thanks, Greg. Good morning, everybody, and welcome to the Medmix part of the Capital Markets Day. Thank you all for joining and your interest in Medmix. My name is Gerd Timemann and I'm running the Medmix business. Before joining Zolter, I had several roles with Hoya Corporation, including leading their largest division Vision Care. I also worked with the Danaher Dental business and before that over 10 years in various positions in GE Healthcare. As I joined the business year and a half ago, I found the business and products fascinating, especially what amazing impact Medmix devices have on the performance of the final product. I also found appealing the opportunity to take Medmix to the next level. Today, speaking here with you, I'm more enthused and excited about the business and its opportunities as ever. In the coming 2 hours or so, we will give you insights in Medmix. We hope you will share the enthusiasm of my team and myself. Medmix is the technology leader in markets we serve with a strong growth potential and an attractive financial profile. And most importantly, we have an engaged and motivated team committed to our success. At this year's employee engagement survey, 93% of respondents told us that they understood how their work contributes to our business objectives. So in summary, we have the technology, we have identified profitable growth opportunities And we have a strong and aligned team to make our growth happen. Let me give you a brief overview of MEDNAX. We have 1900 employees. 12 manufacturing sites globally means that no matter where a customer is based, we will have a site within reach, ready to serve them. We ship over 2,500,000,000 products per year. So there's a very high probability you all encounter our devices or things made with our devices every day. We are a global leader in high precision delivery devices. We pride ourselves in our ability to instill confidence In our end users that whatever the application, whether it's drug administration, aircraft assembly or makeup, The end outcome will be of consistent high quality. Our core competencies LION high precision mixing, dispensing and delivery devices. There are really 3 key things to remember about our competencies. We are an innovator with a strong IP portfolio and innovation pipeline. Quality is in our DNA as we work across several highly regulated industries. And our speed to market is fast, thanks to our digital enablers. Over to our business overview. We design and market precision devices that deliver liquid material to the point of application in a precise and reliable manner. Our devices and systems make up for a small part of the cost of a finished product, But they have a very high impact on how the final product performs. Why that matters? Well, we all certainly want to receive an accurate dosage of medication. We prefer to avoid having air bubbles in dental fillings or CEO smartphone falling apart after a few days use. This is the expertise we take pride in And this is the reason our customers stay with us for years and keep coming back to us. We serve B2B customers across 5 segments in healthcare, consumer and industrial markets. Healthcare makes up 40% of our revenue today and delivers over 50% of profit. We have an attractive strategic setup across all segments. On one hand, we have separate customer facing organizations for our different markets. Our brands are well known and recognized among our customers for innovation and reliability. We're leaders in niche markets with exciting macro growth trends. There are high entry barriers due to IP and regulatory requirements. Our partnership with customers spends the lifetime of a product and extends to new product development. On the other hand, segments share joint industrial DNA with expertise in injection molding and high volume assembly. Teams share technologies and operations, creating synergies and scale. So what this means is that While we serve diverse markets with separate commercial resources, we leverage innovation and operational resources across Medmex. Medmix is a business built with a help of skillfully integrated and scaled acquisitions. The origins of Medmix date back to 1996 as a startup within Zolter Chemtech. In 2006, we acquired Mixpak. This acquisition laid foundations of the company as we know it today. In the subsequent years, we acquired, Successfully integrated and scaled several businesses with innovative products. We've built a balanced portfolio. By 2017, the business had reached a critical mass and was carved out to a separate division in Zolter. In subsequent years, we've broadened our presence in healthcare by acquiring and integrating 4 businesses. All the integration activities have been completed according to our business model, separate commercial teams and Joint Operations and Innovation Backbone. So what this slide shows is that we have a solid track record in acquiring, integrating and scaling companies with good technological fit. When it comes to innovation, we have around 900 active patents. We have been at a technological forefront in many segments, transforming the markets and we continue to innovate. A good example of that is 2 component mixing we introduced in dentistry. It eliminated the need to mix components for impression material by hand at the chairside. It's revolutionized the dental consumables industry, And we've been subsequently expanding our mixer portfolio to other areas in the dental clinic. So the key message on the slide is that we have a track record of transforming our markets. And today, we have more than Half of revenue based on IP protected products. We also lead in ESG across our markets. The power behind MEDMICK's portfolio is that we are exposed to diverse markets. Some markets experience trends ahead of others. This helps us to spot key trends and be ahead of a curve. In cosmetics, consumers have been very early drivers of sustainability, demanding products that address this. Hence, our beauty segment puts us at the forefront in sustainable business practices. We have been recognized as number one makeup supplier when it comes to sustainability by one of the largest global cosmetic companies. Our base sulphur production site is platinum rated by Ecoleres, placing it among top 1% of the industry. Our common innovation and operations backbone leverages these learnings across the segments. Thus, eco design principles are embedded in our innovation philosophy. The proof is Ability award we received already in 2019 for our EcoPAK collapsible cartridge in the industrial segment. You can see that our sustainability leadership in beauty has helped us build a sustainability culture across the whole company. We have 12 manufacturing sites, 6 are serving multiple segments and 6 have clean room capabilities. That means that we can serve our customers efficiently no matter where they're based. Allow me to introduce you to today's presenters, who will join me in telling you the MedMenk story. Our CFO, Jenny Dean, held several senior finance positions in Alstom and GE before joining Zolter. Today, we would like to give you deeper insights in our Healthcare business area. This is why we asked the segment leaders in Healthcare to join us. Holger Ahrens and I worked together at Danaher, where he was leading EMEA sales of cabo, the dental business. Marco Linari joined Hasselmeyer about a year ago before we acquired the business and he brings many years of farm experience. Dominique Bonnier was leading the M and A function of Zolter prior to joining the Medmix team to run surgery. Dominique also oversees the strategy function of MedMax. This concludes my introduction of MedMax. Let me now give you some insights why we are so excited about this business And why we believe Medmix is an excellent investment opportunity. We lead the market in several attractive niches. In certain areas within those markets, we have significant share. For example, our trademarked candy color mixing tips are used every day in most dental offices worldwide. And in beauty, 1 in 5 Mascara microbrushes on the market are made by us. Our gross profit margins in Healthcare are 62% in Consumer and Industry, 40%. This means that our niche leadership position provides us with high profit margins. The markets that we serve have attractive underlying trends and we are well positioned to benefit from them. Aging population and outpatient care, for example, benefit our healthcare segments. Urbanization and the growing middle class in many countries means both better access to health care And more disposable income for housing, consumer electronics, personal care, travel. Therefore, we see our underlying markets growing very healthily in the coming years. Let me now talk about how we tap into these trends through our technological innovation. A key growth driver in all our markets is our own IP. We have around 900 patents. And there are 2 ways we lead in innovation. First, we transform the industry Through own innovation, for example, the EcoPack collapsible cartridge for industry that reduces waste and optimizes transportation or Ergo Syringe in Surgery that makes operating room procedures more efficient, eliminating hand mixing. 2nd, we also co create with our customers. Our deep know how in liquid mixing and handling makes us the ideal partner. We work together to find the perfect delivery solution for their product innovations. A good example here is the magnetic mascara, a micro brush with magnetized core, which is a co creation project with Benefit. We spend 5% to 6% of our revenue on R and D annually to keep this innovation pipeline flowing. Let me explain to you how our markets were impacted by COVID And how they are recovering. Like many companies, the COVID crisis last year was a resilient test for Medmix. Lockdown impact was significant in Q2 last year. Our world essentially slowed down to near stop. Factory furloughs, closed dental offices and stores, people staying at home, elective treatments and healthcare were canceled or postponed. Most end markets shrank by double digits in 2020. The recovery started in Q3 last year, led by industrial markets. Not all end markets have recovered fully. Dental offices in some countries still operate at 80% to 90% of pre COVID capacity. Duty still experienced lockdowns in 2021. Surgery recovery is limited by operating room capacity. So in summary, the recovery is underway. We expect most of our markets to recover by end of 2021. And we expect beauty and surgery to recover through 2022. Let's look at our performance in a COVID context. Following the lockdown in Q2 last year, Medmix business started to recover strongly in Q3. III. Our end markets have not fully recovered yet, as you saw on the previous slide. Despite that, Medmix orders and revenue exceeded pre pandemic level in Q1 this year. We see Q2 develop in a similarly strong pattern. And by the way, our April orders reached all time high. Profitability remained resilient during 2020. Our gross profit margin was stable at pre pandemic levels throughout last year. It increased this year to above pre COVID levels. We have a track record of 25% adjusted EBITDA margins. And as the individual markets recover, we expect to return to over 26% adjusted EBITDA profit margin in 2022. We're still in market recovery and see high growth rates, But also mid term, we aim to grow at 8% CAGR. And there are 3 key points supporting our ambition. First, we have had attractive growth rates in pre COVID time. We were growing at 5% already. So essentially, we would just need to accelerate historical growth space. 2nd, health care end markets are growing faster, And we aim to grow faster in the markets in healthcare. That will change our revenue mix to over 50% in healthcare midterm. And 3rd, beauty was not growing before COVID. We have finished the transformation of beauty business to better address the fast growing segments and we have put beauty back on growth path. Therefore, We believe our organic growth ambition of 8% midterm is achievable. I already talked about the engaged and committed Medmix team. Our business is led by a seasoned leadership team. Most of them have over 20 years of relevant industry or functional experience. We have a balanced composition of the team, whose half of my direct reports are appointed in the past 18 months. This concludes the investment proposition overview. We will now move to the segment presentation, starting with Healthcare. I hand over the floor to Holger Ahrens, who took the helm of a dental segment a little over a year ago. Thanks, Gerd. Good morning. When I was first introduced to Mixtec Dental, I did not know the business. Now this would not be noteworthy that after I spent more than 25 years in the dental industry with leading brands, it came as a very positive surprise to discover the dental business at Solter. My name is Rod Ahrendts. And today, I'm delighted to share with you a great success story of a hidden champion in the dental industry. I will give you some details and insight into our recent strategic initiatives and how we maintain our healthy position and how we will accelerate our organic Growth trajectory. I want to start with a map of the environment we are playing in. Our core products are application and delivery systems for the dental consumable industry. All components of these systems Our integral for the clinical application and the success of our customers and users, the dental professionals. All modules Can easily be assembled or disassembled. There are no tools required. All our products are used during dental education for nurses and dentists, And that is what every dental professional is familiar using our delivery system. You see here a number of clinical routine applications With our products in use, and I'm certain every dental patient was exposed to our products one way or the other at some point in time. We serve the dental consumable industry and each and every player is our customer. These customers use a variety of recipes For their paste and liquids like adhesives, cements or silicones. Because we go through a strict validation process, We can guarantee a smooth user experience as well as reliable clinic results for all the different recipes that our customers offer. Our main competitors are, in fact, our own customers as the dental industry is traditionally highly vertically integrated. We believe there's a trend towards key competencies and focus amongst our customers where we will have opportunities to grow. Our customers value our co creation approach to identify opportunities together very early in the development cycle. We have a significant market share in all prosthetic applications and are a key supplier for our OEM customers. We're a niche specialist serving the dental consumable industry broadly, all relevant. Established players as well as any new player or Startups are our customers. Our core business is in the prosthetics application and packaging segment And with the acquisition of Transcoden in 2017, we strengthened our portfolio in the restorative segment serving the same customer base. Our clients are mainly OEM, but we also do serve private label customers as well as dental distributors. Our products, Especially our mixers are the established industry gold standard globally. Basically, every dental practice uses one of our products on a daily basis. Dental prosthetics is our core segment and that is mainly taking impressions or registering a bite for cramps, bridges and implants. Our restorative products are used for applying and dispensing adhesives, etching gels or fitting materials. These liquids Are applied and dispensed in bottles, capsules and syringes, and this is where we believe to have an excellent opportunity to grow. I have 3 products to share with you in more detail. 1st, our 2nd generation multi component delivery system that can be used for a variety of prosthetic applications. Our customers can mix and match From a wide choice of cartridges, dispensers, mixers and application tips to design their own product feature set. We ship the whole system to our customers. They fill the cartridges and the finished product is ready to use. All our mixes are compatible with our cartridge and Dispenser Systems. This is the established delivery system in all dental clinics, and you certainly have seen it in action during one of your visits and a dentist. The delivery system has modules with different lifespan from dispensers to applications tips. So it's important to note At the mixers or rather the mixing tips, I use are using our trademark candy colors and are considered a consumable and I use for one patient application only. You keep the dispenser for long the cartridge until it is empty, and you will use a fresh mixer and a mixing tip every new patient. With our industry standard delivery system, we have created a versatile ecosystem for MiXS, making it convenient both for our customers and the dental professionals. And our high Swiss quality standard secures the most reliable clinical results. We have evolved our patented mixers from the original Headex mixers to the T Mixers and the Kolari plus Mixers with a breakable tip. All of these mixes are compatible with our existing systems to make it easy for both our OEM customers And the dental professionals to work seamlessly with our delivery systems. Our Qualibri mixer, we recently launched an updated version, Breakable allows multiple applications with 1 mixer through an ergonomic and versatile design. As a general note, in dentistry, very small details and features can make a big difference. As one example, during one of Gert's recent dentist appointments, the doctor complained about our product performance. What we quickly found out was that the doctor was using a competitor's tip with a differently bent angle. Then after using our Swiss made quality tip, The application was hassle free again and the team was satisfied. So this $0.01 item can make the difference between a failure and a success. We are focused on prosthetics and restoratives. The dental consumable market has decreased between 15% to 20% in 2020 as dental practices were closed for 1 quarter or even longer. Hence, we saw a decline of about 35% because we suffered from additional negative pipeline and warehouse effects. Since August 2020, we do see markets coming back to 2019 levels, a record year, and we anticipate Demand to grow at a 4% CAGR going forward. You see the main trends for the dental consumable market here. I would call out especially the aging population with more elderly people without teeth at all and an increasing prosperity as the most important drivers for a sustainable baseline growth in the dental industry. Although there is a trend towards making digital impressions That has been around for more than a decade. Our customers continue to see robust demand from fast growing markets in Asia, Offsetting the digital trend in Western markets. The growth in the restorative segment is well supported by the macro trends to keep your teeth for life if possible And offers an opportunity for growth with our advanced application and delivery solutions. We understand that our OEM customers Compete in highly competitive markets. Oftentimes, these demands or liquids in general are commoditized items with little differentiation. We can support our customers to better distinguish with our unique and smart primary packaging and application solutions. In all the recent discussions with our key customers, we took away the need that our mission is to design and develop new and smart primary packaging ideas. Now here we have the dental market by application as we I have three examples to share with you on how we have and will evolve our product portfolio in the main applications prosthetics, restoratives and anesthetics. So we have enhanced our core mixing tips to versatile tips for multiple applications, as you see on the top. Then we see an increased demand and an opportunity for ergonomic and hygienic applications. In the middle and at the bottom, we have a commercial opportunity overall to take our anesthetics business from regional to a global level. Our strategy is to become the full service provider for the dental consumable industry. Putting this strategy into work and translating our ideas into initiatives, we have identified 4 growth vectors where we have implemented 5 strategic initiatives to maintain and grow our core business while expanding our portfolio into adjacent growth opportunities. As we evolve and expand our product portfolio, we are closely working together with our customers from early stages of the development process onwards to make sure We address common problems. I want to highlight one initiative here, the expansion of our value added services portfolio. These are services like filling, packaging, labeling and other value added products. We do have a small existing business and believe There's a lot more growth opportunity out there. We are already close to the manufacturing processes of our OEM customers. Expanding the services business will bring us even closer, which is another aspect why we focus on this opportunity. One example I want to share with you are our logistics and warehousing capabilities that we have in Brazil, China, Germany, the U. S. And here in Switzerland, where we deliver finished goods ready to sell where our customers need it. Our journey from a specialist to a full service provider. The foundation for this expansion is our deep understanding of our customers' value chain, the established working relationships And the challenges of our customers in a commoditized market. We will continue to serve as a very healthy and focused niche player While addressing adjacent market segments where we can capture growth. All these strategic initiatives addressing products, Existing customer geographies, channel and services will expand our addressable market by a significant margin. We have a steady consumable business. We can build on our healthy core, and we feel great in the unique niche that we have created over the years. In summary, we are serving all global dental customers in a resilient growth market and will accelerate our growth into adjacent markets with the new products and services building on our core capabilities. Our robust business model and team of dedicated specialists make me very confident And we will have great results going forward and continue to deliver. And with this, I hand over to Marco Linari running the drug delivery business. Thank you, Holger. So good morning. My name is Marco Linari, and I'm leading the drug delivery business of Medmix. I'm in the pharmaceutical industry for 20 years, most of the time in leadership roles with Merck. During this time, I became aware of one key supplier Haselmeijer, Which received the prestigious Red Dot Design Award for the fantastic Axis D pen in 2014. This is the backbone for Merck's fertility franchise, which has changed the life of millions of couples wanting to have a child. You can see a patient using this device in the picture. In 2020, I was delighted to join this business and to lead the transaction to Zolter. And I joined because I firmly believe That this business is an exciting foundation for the met mixed drug delivery segment. It is an unpolished diamond. So my part today will be on how to polish this gem, and I would like you to understand three points. We have a complete pen portfolio with 100% of revenues from IP protected devices. We have innovations in our pipeline that resonate with customers, And we are executing a sound strategy to scale up the drug delivery business to €100,000,000 by 2025. Let me tell you first about how this business came together. Until closing of the transaction in October 2020, Haselmeijer was well known for its strength in the design and in the customization of pens for subcutaneous self injection. Bringing the business into Makemix opened up greater commercial resources and high volume manufacturing that were previously not Available. We have a complete and competitive pen portfolio with the reusable pen platforms, iPEN And IPEN2 and the disposable platforms XSD and D Flex. Their different features such as number of dosing steps or dose size Provide capability for many different drugs and indications, including fertility, diabetes, osteoporosis and growth hormones. Further projects in our pipeline includes metabolic disorders and rare diseases as well. Since many customers are in project stages, we cannot share their names. You will understand that we are working with some well known pharmaceutical Companies. Hasselmeyer brand is resonating in the market, and customers now appreciate the evolution into mademix, Bringing better commercial coverage and larger scale production. So Why my opening analogy to an unpolished diamond? Our strong pant portfolio is a fantastic base with underutilized potential. This potential can be unlocked through commercialization and large scale manufacturing. All our revenues come from patent protected devices with opportunities to grow, in particular in the United States and in Asia. I'm proud that we recently signed a deal with a well known U. S. Biotech, the first order is worth around CHF 10,000,000. Currently, twothree of our revenues are coming from the XSD platform, The majority from fertility. With the ramp up of our deflex technology, we start to balance our sales. And we see that D Flex is resonating well with customers for two reasons: reduction of time to market And freedom to operate due to our strong RP portfolio. That means customers can be sure that their drug device combination product is not infringing any intellectual property on the market. A central element for our scale up strategy is portfolio expansion. We currently work on developing an auto injector, providing us with access into the very attractive auto injector market that grows double digit And on launching a digital ecosystem, bringing us into clinical trials. Accordingly, We can start to work with customers much earlier in the process. So the unpolished diamond stands for having already competitive edges That requires some further polishing to become a true gem, and this is actually the essence of our strategy. Let me share with you on how our innovation leadership actually translates into tangible results for customers and for patients. So the dFlex platform translates simplicity in design into significant benefits. D Flex helps customers reducing time to market and cost. Let me give you one example of what that means. A customer recently approached us who decided last minute to launch a biosimilar and a drug device combination product Instead of using a standard prefilled syringe, deflex allowed us to shorten the device customization time to 15 months so that the customer is still able to meet the patent expiry of the originator drug. Time to market is a critical differentiator. Patients and customers can further benefit by pairing the D Flex technology With our digital cap, building a true digital ecosystem that includes a proprietary mobile app And a cloud data platform as well. Data integrity and patients following up the intended dose regimen Our critical points in clinical trials, this ecosystem allows customers to capture data accurately and monitor patient clearance in clinical trials, improving speed and accuracy of data analysis while reducing trial costs. Furthermore, the app can improve on how patient and doctors are interacting. A physician can better understand how And when patients are taking medication, which increases therapy outcome and supports health care cost management as well. At osteoporosis, for example, we are discussing with customers how this ecosystem can support the daily work of homecare nurses by simply reducing their need to complete paper records. This success story is reflected also By receiving the reputable Red Dot and Good Design Awards for both devices last year. Scaling up our commercial approach will provide us with more opportunities in the pen market currently worth CHF900,000,000 that has an attractive growth rate. 3 megatrends will fuel our growth in this market. The trend to home care and self injection, reducing health care costs and increasing quality of life. The increasing prevalence of infertility And the postponed wish to conceive a child and the dramatically increasing prevalence of diabetes and related metabolic disorders. We are confident to outpace market growth and increase our share in diabetes related diseases such as adipositors, In osteoporosis and in rare diseases. A closer look Into the subsegments of the pen market shows the attractive growth rates across all indications. Our strategy will allow us to seize Opportunities in all these segments. Here is what makes me confident that we can up I'll start delivery to CHF 100,000,000 until 2025. In the short term, we will roll out the D Flex model to new indications with a focus on rare diseases, metabolic disorders and biosimilars. We will also benefit from several key drug patent Our new auto injector platform will capitalize on these patent expiries as well. But even more important is the impressive number of new biologicals in development that will use this technology. Accordingly, the auto injector market shows an impressive CAGR of 13%, which our new devices will capitalize on. Our strategic roadmap is the recipe to polish the diamond, To outpace market growth and to scale the business to CHF 100,000,000, we defined a clear scale up strategy along 3 growth vectors: product development, geographic expansion and growing our customer base. And derived from these vectors, we are executing 5 strategic priorities. We are scaling up manufacturing to address mid to high production volumes where we see tremendous opportunities for our IP. We are leveraging the full potential of our devices through a better We are expanding our offering with the auto injector and the connected cap. That means We will tap on the double digit growth of the auto injector market end. We can increase the throughput of D Flex with the connected cap as a differentiator in clinical trials. We are increasing the commercial coverage in the United States and in Asia. And lastly, we are gaining a stronger foothold in indications like autoimmune, inflammatory and oncology with the highest number of candidates in pharmaceutical pipelines. With these steps, We are confident to outpace pen market growth of 7% significantly to upsize the drug delivery business, Leaving our legacy niche far behind and opening up significant part of the attractive CHF 900,000,000 market. Global reach and manufacturing capabilities are critical to achieve this. The addition of the emerging auto injector platform We'll open up a much bigger market that is valued today €1,600,000,000 I want you to remember 3 points on how we polish the diamond to turn it into a true gem. We benefit from a complete pen portfolio With all revenues coming from IP protected devices, we have innovations in our pipeline that resonate with customers, And we are executing a sound strategy to scale up the drug delivery business to €100,000,000 in 2025. Drug delivery is the 2nd pillar of Makemix Healthcare. Now it's my pleasure to hand over to Dominique Playing the growth strategy of the 3rd pillar, the surgery business. Thanks, Marco. It's a pleasure for me to be here today. When Geert asked me about a year ago to take over the surgery business, I said yes immediately because it's a field I'm passionate about. The reason is that more than 20 years ago, I did my civil service in an operating theater. And it really is like a theater, a close team working hand in hand in a small room with constant stress. Everyone is focused on the best outcome for the patient. And Zohavi at Medmixed Surgery. Let's have a look at how we help surgeons to take care of their patients and why is neck surgery an attractive business. When thinking about surgery business, I want you to take away 3 key points. First, it's a highly attractive business with strong customer relationships. 2nd, we are well positioned in this exciting market, which is driven by long term growth trends. And third, our know how and innovation will power us to outgrow the market. Let me start by giving you an overview of the business. We are one of the leading specialized developers and providers of delivery devices for biomaterial. All of our devices are being used in the operating theater. There are 2 different types of applications based on the biomaterial: First, bone cement and second, tissue treatment. There are many subcategories beyond this, but let's stick to those two definitions. Within bone cements, there are 2 areas: trauma or in plain English, bone fractures and joint replacement like a hip or knee implant. So far, we only play in trauma, but we have plans to expand more into bone cement devices for implants as well. On tissue treatment, the biomaterial is applied to help wound healing. Our devices are mostly used in cardiovascular procedures. That means heart or blood vessels operations. They support the healing and improve patient outcomes. We have a large variety of different delivery devices, and we are known in the industry to have the largest portfolio for nearly all relevant procedures. We are proud to support some of the most innovative customers in the surgical space. In the past, we had our biggest successes with fast growing small to midsized players, but we also have many of the major biomaterial OEMs as our customers, and we continue to grow the space. A special customer group is tissue banks. Tissue banks are not for profit organizations that collect They process their organs to repurpose tissue material like bones or blood. There's a big trend for U. S. Tissue banks to professionalize as they become larger. This is an opportunity for us as they switch from simple standard syringes to our made for surgery devices. A quick look at our competitors. I just want to point out that the largest group of our competitors are also potential customers. By that, I mean biomaterial OEMs that develop and or produce their own devices. I will come back to these so called captive OEMs later. By the way, this is a similar characteristic shared with the dental business as Holger pointed out earlier. I want you to give some further insights why we have close and sticky relationships with our customers, which I will explain now. Our Surgery business shares the same heritage as our Dental and Industry business. We acquired it in 2018, and since then, we nearly doubled revenue. How did we do this? A combination of existing customers having increasing confidence in our scale, new products experienced strong growth and new customers trusting our devices. As you can imagine, devices for surgeries have high requirements for quality, functionality and documentation. These days, you cannot differentiate much on quality. It's a given. So we differentiate ourselves offering the widest and most specialized product portfolio for the largest range of surgical procedures. We not only offer the highest functionality combined with Ergonomic Design. Our customers come to us with the most challenging biomaterial to deliver and mix. Because we have low standing history of technical know how and innovation in mixing and delivering the most complicated biomaterials. In short, our customers are the experts in creating biomaterial, and we help them to deliver it. This is one reason why we are convinced that we will increase our share of large OEMs that are currently captive. On documentation and regulation. We are not a legal manufacturer of medical devices, but we are providing the documentation as if. Our devices and documentation are part of our customers' medical device file. Switching a device would always incur a lot of cost and efforts on our customer side, in some cases, even new clinical studies. So it is obvious that the willingness to switch devices is extremely low. These are two reasons for the attractiveness of our business, Our know how and medical device experience adding value to our customers' biomaterial and both creating close, sticky and long term customer relationships. Looking at our revenues by split by customer segment, I would like to highlight 2 points. We have currently a larger share in bone cement, which is where we traditionally used to focus. But these days, we are intensifying our efforts in the faster growing tissue treatment area. Secondly, Tissue banks are growing rapidly and are already nearly 20% of our revenues. Let me now show you 2 of our most successful product stories in bone cement and 1 in tissue treatment. In high growth tissue treatment, our prefilled double syringe system is one of the most used devices for cardiovascular wound closure. This material delivered by our device has been clinically proven to improve patient outcomes. Our device has been used in more than 2,000,000 cardiovascular procedures, which is something we are extremely proud of. The bone body system is another success story. Our customer chose our device from the start of its development about 10 years ago. Revenues with this device have grown more than 5 times in 2018. So far, I hope I was able to convey why Certior is an attractive business with strong customer relationships, part of the key takeaways I mentioned at the beginning. I also mentioned that we are in a growing market. So let's have a look at this now. Let me talk about the key growth drivers in our markets. In general, this is already a mid to high single digit growth market as people become older and the growing middle class is becoming more active. This will result in more operations, trauma as well as joint replacements and procedures for tissue treatment. On top of that market growth, Some of our focus areas like tissue banks are growing even faster. Like one of the trends in Holger's Stencil business, There's some commoditization ongoing, especially in bond cement. And if bio material becomes commoditized, The device is the differentiating factor. This is obviously good for our business. And on the tissue treatment side, We still there's still room to grow for existing and new biomaterials. This is because they have a positive impact on post operation performance, Fewer infections and comorbidities, reducing patient suffering. This also helps to reduce costs for hospitals and insurers. Any new biomaterial is an opportunity for us to grow into the captive OEM share. So we will benefit from all these points above as we have, A, the right devices for our customers to differentiate their current biomaterial And b, we have to know how to deliver the most challenging new biomaterials. On the next page, You will see how our markets are growing and how we will capture this growth. As you can see, Our wide product range already covers most of the trauma bone cement and tissue treatment markets. The key point on this page, We are moving into the joint replacement market with a new product under development as we speak. We have a lead customer on this product who is strongly supporting us in the development. This is how our close customer relationships and our technical know how enable us to capture a larger share of the market. I want to talk more about our growth potential on the next page. As you have already seen, we have a lot of growth in front of us coming from a strong innovation mindset and know how base. We have set key strategic priorities to capture this growth. I want to talk about the top 2. First, we aim to grow our share of wallet by turning captive OEMs into our customers. As some of their biomaterial becomes more commoditized, our tailor made devices offer differentiation from their competition. For others, our high value products enhance their latest innovations and support a great market launch. As an example, we are currently in discussion with a large OEM to provide a tailor made device for completely new tissue treatment material. They have come to us because of our well known experience in mixing biomaterial with the most functional design. The customer repeated how impressed he was with our R and D colleagues several times, unprompted. Secondly, We are currently developing a product with innovative features to move into joint replacement market. We have past experience here and already have several lead customers supporting us. Let me summarize the key messages from my presentation. We are one of the leaders in a strong growing market, and we are known for having the largest product portfolio as well as great technical know how of mix and biomaterials. Our basis for continued high growth is our focus on winning large customers, the fast growing tissue treatment market and even faster growing tissue paint. The expansion of this new product into joint replacement and other growth initiatives unlocks a large addressable market worldwide. This will bring long term growth opportunities. In conclusion, I hope that I was able to convey the 3 key takeaways. First, CertiVie is a highly attractive business with strong customer relationships. 2nd, We are well positioned in this exciting market, which is driven by long term growth. And third, our know how and innovation will power us to outgrow the market. Thank you very much for your attention and back to Gerd. Thanks, Dominik. All right. So surgery presentation concludes the section on Healthcare and we move on to Consumer Industrial Business Area. I will walk through walk you through the Industrial segment. And after me, Jenny Dean will talk about the beauty. Our industry segment covers a very broad range of applications across many industries. In short, wherever there is need for adhesives or coatings, we are there. Our daily lives are surrounded by items produced With the help of mid next delivery devices, iPhones, electric cars and airplanes are assembled with the help of adhesives. If you have ever had the windshield of your car replaced, the new windshield is glued in with the adhesive applied with the help of Medmix Devices. Chemical bonding and surface coating are becoming more and more common in construction. Even hooves of horses and cattle are increasingly repaired with the help of chemical bonding materials. These are just some examples of how our products are in use every day. We design and manufacture cartridges, mixers and dispensers for adhesive and coating material. We have many of the world's largest adhesive makers as our customers. Their adhesive or coating components are filled in our 2 component cartridges, mixed together at the point of application by our mixers and dispensed with the help of the dispenser guns. So we really are omnipresent, thanks to the increased use of industrial adhesives. Over half of revenue is generated with Europe, Middle East and Africa customers selling worldwide. From products, the highest revenue contributors are the consumables, Cartridges and mixers, followed by dispensing devices. We go to market with mixed pack, Cox and MK Brands that are very well known names in the industry. Also in industry segment, we lead with broad IP protection and innovative solutions like EcoPack and Mixeddeal. EcoPack is our award winning innovation for industry. It is a collapsible cartridge delivered in a collapsed state to filling location. It saves space and weight in transport and thus reduces CO2 emissions. Similarly, it is compressed when the material is applied, reducing waste. Let me give you a deeper insight in Two application areas of our products. The phones and other electronic devices we all use are getting more compact, whilst the screens are getting larger. Therefore, precision adhesive bonding is the preferred assembly method for high end devices Flight to iPhone. The manufacturing process of Foxconn uses med mix cartridges and mixing tips. The tips enable delivery of a precise dose of adhesive material. It bonds the screen as well as the backside glass cover to the frame. And just a fun fact, every year late summer, the sales out of our Shanghai plan spike. And this is how we know it's soon release time for a new iPhone model. We also provide cartridges and mixers for the electric vehicle battery manufacturing process. Adhesives are widely used for assembly of electric vehicle batteries. And subsequently, adhesives are also used in the manufacturing process of the electric vehicles themselves to affix the batteries. The key message to take away from this slide is, our end users trust Although our devices are used across a very wide spectrum of industries, there is one common trend. This is the accelerated shift from mechanical fastening to chemical bonding. It is also showcased by the revenue growth of our customers. Chemical bonding is perceived to be more efficient, longer lasting and more reliable. Another trend is automotive. Adhesives are increasingly used in the assembly of electrical vehicles and their batteries. And the automotive market is shifting from internal combustion engines to electric. So a key takeaway here is that there are favorable an industry that drive high long term growth rates for our business. Let me share with you a growth path for industry to take advantage of these market growth trends. The 3 main opportunities. Firstly, growing with core and new products as new chemical formulations enter the market. 2nd, we have launched several innovative products in the past couple of years. It can take several years for innovations get foothold in these markets, and we're starting to see sales ramping up now. And 3rd, in particular, in the tile grout application in China. We have only recently entered this segment in construction in China, and we see strong potential there. Our 2 strategic growth vectors for the industry segment are firstly, expanding into new products as new formulations or applications emerge and second, expanding geographically to increase our share with chemical manufacturers and fillers outside of Europe and North America. Among the 5 strategic priorities is to grow share in general industry and construction markets. We will also continue to lead in sustainable solutions, reducing waste and CO2 emissions. To summarize, industry markets enjoy very appealing growth rates As the world moves from mechanical to chemical bonding, we are able to sustain high organic growth rates Through expansion into construction, fast growing markets and adjacencies like precision dosing. The three key points you should take away regarding Industry segment are as follows. We are present wherever adhesives and surface coatings are applied. Our customers choose us for our know how of precise and high consistent quality application of material. And lastly, We lead the way on sustainable solutions for industries, helping reduce waste and save CO2 emissions. And with this, I'll hand over to Jenny to present the Beauty segment. Thanks, Gietz. I'm really delighted to present to you our Beauty and Microbrush business. I genuinely see this business As a great contributor to our Medmixed portfolio, this is a high precision and technically innovative business with high customization and Extremely demanding customers. It has a lot to offer our other segments as an early adopter in areas such as sustainability. Through our brand Geika, we develop and design innovative microbrushes and applicators and offer everything from individual products to full service solutions. We are active in the area of color cosmetics, skincare, haircare and accessories, So we can offer a platform approach to our customers. We also develop microbrushes that can be used for cleaners in non beauty applications in Dental and Industrial segments. Our competitors are fairly fragmented providing us a competitive advantage. Our customer base includes global icons in the beauty market as well as independents and regional players. While there appear to be a myriad of beauty players in the press, the ultimate parents are actually quite consolidated holding very broad portfolios And this provides us with multiple opportunities to serve them as partner of choice. New entrants and influencers are often snapped As soon as they start to be successful and this addressing these new players also helps us enter the more established players in the long run. In addition to these points on the beauty market and important for Medmix is that due to consumer influence, the beauty It is an early adopter in many areas that we can leverage to strengthen our positioning and portfolio in other areas of Medmix. Firstly, defining and communicating ESG commitments. Where a clear roadmap and audits are no longer a competitive advantage in Beauty, They're merely a ticket to the game in submitting RFQs. Our beauty business has attained the exclusive ecovatus Platinum status, meaning they're in the top 1% of their field. 2nd is sustainable and recyclable materials for injection molding, Like the Holy Grail of completely transparent recycled vessels. 3rd is 3 d printing, where we are developing micro brushes and And finally, TEMPOR Evident and mechanisms in single hygiene use products. We tend to segment Our beauty business in 3 ways. The first is customer offer type and you can see here, mass, prestige and prestige defined in terms of the selling price. And while this is important, it's also driven by the quality, look and feel and exclusivity of the product. Important to highlight is that all our products are customized in beauty. You will never see an identical product sold by 2 unrelated parties. Also important is that each of these effects and offers requires us to demonstrate innovation, quality, agility and design thinking. The trend is more and more to more premiumization, hence our recent investments in insourcing and expanding our decoration capabilities In Berghofen in Germany. 2nd is a regional dimension and this is not The end consumer, this is our B2B customer location. Clear here is the preeminence of the traditional players in Europe, primarily the French L'Oreal, Chanel, LVMH and so on. These customers still prefer their supply chains internal And external to be close to their headquarters. And this is another reason why we chose to reinvest in our facility in Germany where our core technical and innovation teams are also based. There are big players of course outside Europe, In the U. S, for example, Estee Lauder. But many of these players are actually subsidiaries of the Europeans. There are growing regional players and in some large regional markets like LatAm, a local presence is clearly mandatory. The 3rd way that we segment our business is by product type and here are 3 case studies for you. The first two not surprisingly are in Mascara for this is the majority of our revenues and the majority of our 150 plus patents. The impact of the brush is immense. It's the brush that determines the look and the effect of the mascara and the success of the product And therefore, secures our future volumes. The first case study is a twisted white brush. There are a myriad of shapes and bristle designs to drive effects and performance. For example, short bristles tend towards volume and long bristles support separation and combing. These variations allow us not only to deliver the customer's vision, but to tailor our products to different geographies. For example, in Asia, where genetically the lashes tend to be shorter. The second case study is the biomaterial injection molded brush. We hold many patents in this area and are seen as a leader in the field. This specific innovation is 2 differing materials. So we have a more solid core that supports the application of the Mascara And a softer material used for the bristles for Comfort. Our most recent commercial success is a great example of why we are the partner of Choice in Mascara Innovation. We were chosen by Benefit to partner with them for the latest product in their real Mascara range. Benefits marketing is fun and quirky. You may have seen their retro packaging in the duty free hauls, But they also have great innovative products and this is the latest a magnetic mascara. Both the injection molded brush And the Mascara are charged so that they attract and this helps with the lift and the look of the Mascara effect. Developing the technical solution for this product was pretty intense and could not have been achieved by all. And the launch despite being during the pandemic has been extremely successful. The 3rd case study is an insight into our future, A non color cosmetics application in skincare where we have made exciting progress. Skincare is the fastest growing beauty segment Driven by trends of pampering and self care during lockdown, skin protection against pollution and macroeconomic trends like the aging population. The need here is for precise hygienic and smooth application of often very expensive formulations And developments here have a very broad potential for us in the future. The color cosmetics market we address CHF800 1,000,000 with a CAGR of 5.6%. Our market share is around 15% With by far our highest share at around 20% in Mascara. We have products across the complete product portfolio And this ensures we can address not only our technical, traditional global customers, but also midsize and regional players. And the recent disruptors in the beauty market, the indies and the influencers who have no access to manufacturing backbone Are in start up mode and for whom speed is key. Through our online configurator, we offer a predefined set of sizes, shapes and colors, Our building block system for the components of our products, which the customers can pick and mix To design one product or a platform lip, eyes, concealer, for example, and then further differentiate their product By choosing from our broad range of innovative decoration capabilities. This is an area we have invested in heavily through our an expanded decoration capabilities in the beauty transformation project in Germany. The BBS system Has several benefits for us and our customers. Firstly, it reduces the number of physical samples, Which significantly shortens the development cycle great for the Indies and limits the disruption to plant productivity caused by sample runs, Great for us. 2nd, it reduces the capital investment and lead times required during the commercialization phase. Again, great for the indies and influencers to be fast with their product on the shelf. And there's no expensive bespoke moulds or tooling required as we use our predefined set of product components. And thirdly, it helps us To build a better value proposition for our customers by demonstrating the different levels of customization in the products they choose. This online configurator has clear benefits for our other segments, especially in the industrial space And there's further potential for this to be extended to an online sales platform. In our indressed color cosmetics market of over CHF800 1,000,000 you see on the left, Mascara is our core product. All segments are growing in relatively stable relation to the others between 5% 7% and there's an overall CAGR of 5.6%. MEDMEX share is around 15%. Moving beyond Mascara is key to our strategy. In color cosmetics, we're intensifying our growth in lip, brows and concealer, for example. In beauty beyond color cosmetics, We have had first successes in beard, hair coloration and skin care applications with skin care, as I mentioned, being This growing segment in the beauty market. Beyond beauty, we have had success in the past with cleaner applications where microbrushes of high precision in varying materials are critical. Example, cleaners in high end electronic devices. We have 3 strategic growth factors in our Beauty and Microbrush business to help us Better navigate our addressed color cosmetics market and chart our strategy to expand to markets beyond. First is the product expansion as I just explained beyond mascara, beyond color cosmetics and microbrushes beyond beauty. 2nd is geographic expansion. 1st, China, local for local and beyond, Then China into Southeast Asia and from Europe into the Middle East. And finally, grow our customer base, New entrants, indies and influencers, midsize and regional players all through the online configurator and BBS system And a faster, broader offering. We have strong fundamentals in our business and through our brand Geike. We have deep domain expertise, acknowledged innovation and technical leadership and proprietary products and processes. Our recently completed investment in Germany takes us to the next level, ensuring that through expanded decoration capabilities, Shortened lead times and automation and technology, we can successfully move from our traditional core of Mascara for global players to a diverse range of beauty and other micro brush applications for customers of all sizes, business models And geographies. We are not only a leader in high precision delivery devices for beauty, but are leading edge in many fields applicable to our Other markets addressed by Medmix and core to our strategy like sustainability. That concludes the product segment part of our presentation where we have provided insights into our Medmix portfolio And our strategic priorities for the future. So let me now switch hats from beauty champion to CFO Where I have been the CFO of Medmix since I joined Sulser in 2017 at the inception of this fantastic business and present to you our financial highlights. In the midterm, our Medmix expectation is to deliver revenue growth of around 8% CAGR, More than 50% of our revenue from Healthcare and an adjusted EBITDA margin of around 30%. This year, we expect to deliver CHF450 1,000,000 of revenue at an adjusted EBITDA margin of around 25%. We expect our leverage at the split post capital increase to be 1 to 2 times net debt to EBITDA. We are seeing revenue growth across all our segments of Medmix and with an increasing shift towards Healthcare. This year we expect our overall revenue to be higher than pre pandemic 2019. In 2019, consumer industrial revenue dropped due to firstly new trends and the rise of the influences in the beauty color cosmetics market And secondly, an abrupt halt to the MicroBrush product by our customer PMI. Despite the volume drop, Our adjusted EBITDA margin improved versus 2018 on the back of strong execution. In 2020, we had a strong start. The COVID-nineteen interrupted this from March and by quarter 2, we had completely stalled. The beauty and dental markets because of the retail outlets and dental offices were closed. This was only a matter of temporary closure, however. Underlying demand has remained unchanged. And since the end of summer, we've seen a steeper term in our volumes, Some from restocking and pent up demand, but also some market share gain and underlying market growth. In quarter 1 this year, both businesses had revenues already growing above pre pandemic levels. There is still some weakness in the market, for example, beauty and some geographies in the Americas, But our full year 2021 revenue is expected to be around CHF450 1,000,000 back to pre pandemic levels in most markets and with a much higher portion in the mix from healthcare. Going into 2022, we expect high single digit revenue growth. Medmix has demonstrated resilient business margins of around 45%. In 2019, MEDNAIC's business area gross margin improved 200 basis points due to firstly operational improvements driven by post acquisition strategies and synergies in dental, surgery and industry and the opening of our new facility in Poland And secondly, through the growth of healthcare in the mix. In 2020, we demonstrated the robustness of our portfolio. We experienced unprecedented volume impacts due to COVID-nineteen and turbulence in the markets. However, Resilient pricing and continued upsides from operations projects such as automation and Phase 2 of our Poland facility Ensure that we maintained our business area gross margin. In 2021, our expectation is for Stable business area gross margins to continue. This has been confirmed in quarter 1 and to date in quarter 2. We have robust adjusted EBITDA margins, which will be further strengthened as Healthcare grows in volume and within our mix. In 2019, stable pricing, growth in Healthcare and operational improvements led to a 100 basis points increase And adjusted EBITDA margin to 26%. In 2020, the Q2 collapse in demand due to COVID-nineteen Led to negative volume and mix impacts. We were able to protect our adjusted EBITDA margins, however, Due to resilient business area gross margins and through swift cost out actions, including reduction in temps, Short time working and minimizing controllable spend. Due to this fast and comprehensive response, We did not have to resort to structural actions that may have damaged our ability to rebound as fast and as effectively as we did. In 2021 and 2022, adjusted EBITDA margins are Expected to revert to 2018 2019 levels of 25% and then 26% Based on higher volumes in the mix from healthcare, strong post recovery in industry and commercialization of new products in Drug Delivery and Beauty. In the midterm, we expect our EBITDA margin to rise to 30% On the back of firstly revenue growth with a CAGR of 8% second favorable segment mix with Healthcare growing faster And with a nice profitable margin and third operational leverage through better plant utilization due to higher volume, The impact of the transformation in our beauty factories and SG and A growing at a slower pace than revenue. In 2019 2020, we implemented actions to consolidate our 2 beauty factories in Germany And to retool the main plant to address the new trends in the beauty market. Spend here was close to CHF30 1,000,000 and this project is now complete. Excluding this project, the CapEx in these two years was around 6% of revenue. In 2021, we are activating some delayed investments from last year and we also have some investments to support our new product introductions. So CapEx is slightly higher than a normalized level, but lower than 2020. Over the midterm, we expect CapEx of 7% to 8% revenue and this is considering both CapEx for growth, especially in Hasselmeyer and Healthcare and replacement CapEx. We expect to return closer to depreciation levels in the longer term. In terms of leverage and capital increase considerations, Medmix is expected to have around CHF400 1,000,000 of net debt at the comprising an intercompany loan of around CHF400 1,000,000 and a small amount of lease liabilities and cash. After a capital increase of targeted CHF200 1,000,000 to CHF300 1,000,000, MEDMIS is expected to to have net debt of CHF100 1,000,000 to CHF200 1,000,000. This translates to a leverage of around CHF1 1,000,000 to CHF200 1,000,000. This translates to a leverage of around CHF1 1,000,000 to CHF200 1,000,000. Net debt EBITDA in line with our sector peers and provides a capital structure that will support our growth. After the split, Medmix will refinance the intercompany loan with external financing. Our MEDMIX portfolio has proved itself robust both during the pandemic and in the subsequent rebound. In quarter 1 2021, we saw orders at a historic high with orders and sales sequentially and year on year up on an organic basis. All markets except Beauty are expected to return to pre pandemic levels during 2021 And our Q2 expectations support this outlook. We grew our adjusted EBITDA margin 100 basis points Year on year in quarter 1 2021, strong growth in Dental and Industrial and continued good cost management Contributed to the increased profitability. With further market recovery expected during the year, we are well placed To achieve our 2021 targets of CHF450 1,000,000 in revenue and adjusted EBITDA of 25%. Now I hand back to you, Gert, for the conclusion and outlook. Thanks, Cindy. So let me take a few minutes to summarize the investment opportunity for you. Since I joined the business 1.5 years ago, I have been laying the foundations of the standalone Medmix business, building a balanced and resilient business model that is geared to deliver sustainable profitable growth. We have achieved a lot despite the COVID lockdowns and remote work. We entered drug delivery segment with Hasselmeyer acquisition. We finished Transformation of Beauty to be able to better address the fast growing independent segment. We've strengthened the leadership team with strong leaders with long tenure in their markets and functions. And with the foundations we laid, we have positioned ourselves for strong performance in our next chapter as a public company. For the coming 5 years, We have set 5 priorities to continue our leadership as a lean, innovative and customer centric company. We will further grow in health care organically and through acquisitions. We aim to become significant local player in China I will grow our customer base with Chinese customers. And we will continue to leverage our sustainability advantage provided by Beauty to deliver on our midterm ESG commitments. We will continue with disciplined approach With regards to our M and A, we have an active pipeline of opportunities. In Healthcare, we're looking at small to midsized adjacencies with strong IP that fit to our established business model. In China, we're looking at small to midsized players with strong local customer base. With this, let me summarize the financial outlook. We see med mix revenue growing high single digit Next year, mid term, we have 8% CAGR organic growth ambition, driven by 3 factors: The trends driving growth in underlying markets, in healthcare growing faster than the market and accelerating our historical growth through focused growth initiatives. We expect to return to our pre COVID profitability of 26% adjusted EBITDA next year. Midterm, we aim to grow adjusted EBITDA to 30%. So there are 2 drivers, favorable segment mix With healthcare having higher profitability and growing faster than industry and consumer and through operational leverage My improved plant utilization and fixed costs growing at slower pace than sales. We expect CapEx to stay around 7% to 8% of revenue as we adjust our manufacturing base for Healthcare and be lower thereafter. We expect other KPIs to remain at the same level from 2022 onwards. And although we look at MEDNAX as a gross play rather than dividend play, we aim to pay dividends no lower than R50 per share. To conclude, this is why I believe Medmix is a fantastic investment opportunity. And these are the 3 things you really should remember about Medmix: high growth, high margins, powered by technology. And as we know, business is conducted by people and Medmick's team is highly engaged and motivated, committed to our success and to our growth plan. With this, I would like to wrap up today's presentation and open the floor for questions. We will now begin the question and answer session. Gentlemen, so far there are no questions from the phone. The first question comes from Patrick Raifert from UBS. Please go ahead. Hi, good morning. Sorry, I was on mute. Good morning, everyone. At the end, The first question would be on your CapEx guidance. So it seems if I assume something like 4% to 5% Maintenance CapEx, you're spending about CHF1 of CapEx, expansion CapEx for CHF2 of incremental revenues. But if you guide for a normalization of CapEx to sales towards D and A, Does that mean you expect to get even more revenues out of your CapEx? And it just doesn't seem to tie in with the Midterm growth ambition. And then the second question is on what you described on your customer base in dental With main competitors also acting as customers. What is the share of revenues you generate with customers who are also Competitors and the same for Solter, it would be interesting. And That's it for now. Thank you. Right. Thank you, Patrick. So I'll hand the answers over to our Subject matter experts. So Jenny, would you like to take the CapEx question? And then Holger and Dominique will take the respective surgery and dental. Okay. So in terms of our depreciation, we are generally at 6% of our revenue. And In fact, because of our growth proposition, we have a premium of the CapEx of around 2 percentage points on top of that. We expect, as I mentioned, to have a higher CapEx as percentage of revenue this year due to some activated assets That's from last year and because we're investing in our product developments, but we expect to move back towards 7% to 8% in the future as a percentage of revenue. All right. Thank you. Holger, award in dental. Yes. So Patrick, I understand the question is about How many of our customers are also our competitors? I would say about roughly speaking about a third It depends on the level of integration that they have. So that means for us that This 30% of our customer base is an opportunity for us as well. Okay. Understood. Thanks. Maybe just one additional question. Have you decided on the reporting structure for MEDMIX As a standalone entity, what kind of segment details do you plan to disclose? Right. So Yes, Patrick, we're going to be organized or we are organized in 2 business areas. So health care on one hand that shares, let's say, higher growth aspirations, also higher organic market growth. And then we have Consumer Industrial. So those that business area is closer actually to the consumers themselves. So That's essentially how we're going to be organized. My leadership team will consist of Besides Jenny, our CFO and operations, HR of all the segment leaders going to be reporting to me. Okay. And will you be disclosing gross margins then on that level? Or do you go further down? We're going to be disclosing gross margins on the business area level. Okay, super. Thanks. The next question comes from Aurelio Calderon from Morgan Stanley. Please go ahead. Hi, good morning. Thanks for taking my question. I guess going through your slide deck, one thing that caught my eye is If I look at the growth that you're expecting in basically your kind of core areas of content or where you have a, let's say, Stronger position or larger market share. It seems like the growth that you're expecting is lower than in adjacent areas. Like for example, if I look at the Drug Delivery business, you're expecting more growth in diabetes and you're expecting in fertility, which is kind of your core business. And I guess the same applies To the other divisions. Do you see this as a risk or as an opportunity in terms of being able to gain market share in a market that is growing? I'm asking if you could so easily your growth numbers that you're targeting, that 8% CAGR is quite impressive. But I'm just wondering how much of that 8 You think it's going to come from new markets and how much it's going to come from the core markets that you're currently serving? Right. Thanks Aurelio. Well, let me start answering that question and then probably since The drug delivery was brought up. Well, I'll hand over to Marco. Really, the way we are looking at the market growth It's more kind of what opportunities and what indications can we enter with our product portfolio. So we look more at kind of, say, we launched D Flex, D Flex and ZEPAN, what indications they can address And what is our growth opportunities there? Similarly, on dental, for example, if we look at growth in dental, We look at growth outside of the prosthetics and restorative into other areas where we have, I'd say we already have a very strong established brand name in dental area. We already have proven quality, Consistent quality, time after time, no bubbles in the final material being applied. And it's very easy to leverage that reputation that you have to enter into other markets. So Marco, would you like to add something about how you look at the indications? I mean, first, we have to keep in mind That we have a business that is that has been traditionally underserved, yes. So and with our capabilities now, We will make sure that we will outpace the market since we are investing into commercialization and into large scale manufacturing. And this should bring us Above the CAGR of the market. And secondly, we have the D Flex and the D Flex will help To gain market share, and we see in particular in areas like the non insulin diabetes, where it resonates, it resonates in osteoporosis and in rare diseases. And keep in mind, we already have one significant order secured in the United States from a U. S. Biotech, Which is project revenue only. So that has the potential to help to outpace market growth. And as I said in the beginning, I think, D Flex has a really powerful value proposition for the pharma companies, Just because they can shorten the time to market. And actually, I believe not only we have secured An order, an agreement with the U. S. Biotech. I think we have built also in the past 12 months a very significant project pipeline for that product. Does that answer your question Aurelio? Yes. That's helpful. Thank you very much. And maybe I can squeeze in one more. It's around your kind of expectations in terms of cash conversion. And obviously, I think you are targeting quite Well, a significant CapEx increase over the next couple of years, but would be obviously being a very short cycle business, I think the cash conversion should be Relatively good. Any indications that you are able to share with us in terms of cash conversion expectations or free cash flow? What are you thinking in terms of cash? Right. Thank you. I think Jenny is in excellent position to Provide insight. Thanks, Gees. So pre COVID, we were traditionally in Medmix at a free cash flow percentage of revenue mid teens. Clearly, with the COVID impact on our volumes, an unprecedented decrease there. Plus, as we've mentioned, The beauty transformation project and some investment in new product introduction, currently our free cash flow is not at the expectations for the future, But we see a move back towards mid teens as a percentage of revenue. That's helpful. Thank you very much. Thank you. Next question comes from Arnaud Christian from Stifel Schweitzer AG. Please go ahead. Yes, hello. Thank you for taking my question. Actually, one, in the past, there was not much of a difference Orders and sales for the APS business, so very short lead time here. So taking your orders of Q1, Q2 Of roughly €250,000,000 That will more lead to a €500,000,000 sales for 20 21, you're guiding for €450,000,000 So there is a gap between orders and sales. And I wonder if Something has changed in terms of seasonality or product mix effect that in the future we will have a bigger gap Between sales and orders or is that just a temporary effect in 2021? Thank you. Right. Hi, Christian. Jenny will take that, but initially, just to give you kind of insight what's happening as we get out of COVID. During the lockdown and after also in Q3, in the rebound months Following the exit of lockdown, to a large extent, all the value chain, all the inventories were largely emptied. Yes. So what's happening now is stock replenishment on top of underlying market growth, on top of also us taking a little bit share. So that kind of drives the gap that we have between orders and sales. Janine, do you want to add something? Yes. Piz, I think it's a Completely normal phenomena. We saw the exact mirror image where we saw our orders finish Before our sales during the close or during the collapse in Q2 last year. What we see in addition and this is clearly in the press Everywhere is there are raw material shortages everywhere. There are logistics challenges, whether it's containers from China or berth on a ship, everywhere. And so what we've seen is that some of our customers are trying to put longer term orders than they would normally place and tell us because we have a good forecast process with them. So they're telling us these are not the normal 6 weeks orders, these are 3 6 month orders in a hope that they will reserve their portion of our Supply chain and secure their deliveries because they see their ramp up and they know that they need us to be successful in that reentry into the market. I think it's a temporary phenomena and we do see that over the end of this year we'll revert to normal orders equal sales type behavior again. Great. Thank you. Thank you. The next question comes from Christoph Grenetler from Credit Suisse. Please go ahead. Thank you, operator. Good morning. I have a few questions actually. First, maybe starting on the strategic side. I mean, looking at the portfolio of the businesses you presented, they look fairly heterogeneous with little coherent to each other. So could you maybe elaborate where you see kind of the midterm outlook and that all these businesses are of the same core To the companies, I understand obviously kind of with the health care angle and growth angle, but your comments on M and A. But basically, could you elaborate a bit on the portfolio development over time you expect now? All right. Thank you, Christoph. It's a very easy question to answer. We like all our segments. And as I mentioned earlier in the business in the introductory part, The way we organize is that, yes, we do serve very diverse markets. So this is why we have separate front end organizations. And then there's lots of commonalities going on, on the innovation sharing, on the technology. Our back end resources in operations, procurement and finance, they're all integrated. And this is where we really can get the economies of scale. We also learn a lot from each of these segments. Let's say, beauty has helped us a lot because They have been exposed to sustainability focus for a very long time. They had started to work on post I called the materials on bio based materials a very long time, actually way before our other industries that we serve Even became aware of the need. So thanks to having beauty in our portfolio, we've been able to capitalize on that. And then we are actually a few steps ahead of our competition and then being able to offer sustainable products. We also share innovation Across our segments, one additional is the innovation that COVID situation brought us and also coming by accident from the consumer And the cosmetics market is tamper evident packaging. And so also with that The patented now innovation, we're able to offer tamper evident packaging And Catamper Evidence Solutions for dentistry, Catamper Evidence Solutions for drug delivery that significantly reduces cross contamination. So there's lots of synergies, lots of similarities related to technology, related to operations. Six manufacturing sites we have today are multi segment sites worldwide. Does that answer your question a little bit Christophe? Maybe I can just add something Gitte. I mean in terms of the sizing of the Portfolio, what we showed is that quarter 1 this year we're forty-sixty percent, 40% sales out of healthcare, 60% from consumer and industrial And our midterm target is that we will have revenue of at least 50% from Healthcare. Yes, I understand. As a father, I can understand that you like all your children in the same way. Yes, fair enough. Maybe continuing, I mean, looking at it from a different perspective on a capital invested side, could you maybe kind of indicate What percent of your Canal operating capital is invested in these Canal of Businesses? Or maybe at least now also going forward, Give an indication of the CapEx to sales ratio for these individual business units. Right. Thanks. I'm not sure to what extent we have those data available. Well, I think it's actually irrelevant to a large extent. As Gijs has explained, then We have a mutualized backbone, whether it's in R and D and innovation, in our operations, facilities and our transverse functions, Whether it's in operational excellence, for example. So the predominant capital investment we have is transverse in nature and not Specifically attributable to any one segment. Okay. I guess for us, It makes a bit of a difference, I guess, a bit higher margins you get in Healthcare and the higher margins, you would expect a bit No different in our return profile then, you know, kind of. But anyway It's easy to say. You're right. But we have a very robust Process, we've been extremely disciplined in our capital allocation methodology in the past. We take each opportunity based It's value accretive status for our business, and we'll continue to deploy our capital in the same way in the future. I guess the return profile on kind of your innovation portfolio is probably kind of quite different across different businesses. But anyway, I mean, look, maybe if I can go quickly into the drug delivery business. I understand it's very heavily geared to fertility. Maybe could you discuss the customer concentration in this business And particularly also your contract situation with Merck there, how long that contract is, kind of what are Kind of know the safety net, so to say. Right. Thanks, Christophe. So I'll hand it over to Marco to give you insight on that. Yes. So I mean, Merck is an important customer, and we really take pride on being the supplier of the market leader. Merck is locked in with us since, I mean, our product is the drug device combination product. So it is in the dossier. And accordingly, We have very good opportunities. Going forward, and I think this is also clear, we are starting to balance our Pipeline further with D Flex, which is part of the strategy so that the share of Merck will continue to go down since we are growing in other areas. Does this answer your question, Christophe? Yes. Not very kind of expensively, but Yes. I guess not more you want to say. Maybe kind of moving on then to So, auto financial question. What's actually the interest rate on the intercompany loan that you pay? Right. Cindy? The interest rate today is not one single interest rate. We've had various loans during the process Building and then growing APS, so I can't give you one answer to that question. I'm sorry. Okay. Maybe But you discussed kind of networking capital and so I think going forward it's irrelevant. As we've said post capital increase then we will Or convert our loan to external financing and then it'll be at the general market rates. Yes. I guess for us, it could mean quite a boost to earnings. Since you are likely to be able to reach much cheaper. But Again, we don't know the base, no, we don't know. Understood. And I'll pass it to our treasury team. And then on net working capital, Could you give kind of some indication where we stand, let's say, inventory to sales, receivable to sales ratio right now and how you see that And over time, no? I think for in terms of networking capital, we're relatively similar to our peers. We have a very stable set of customers. We have a stable set of suppliers. So important for your modeling is that there's no variation even during the pandemic the percentage of revenue was relatively stable. And this we expect to continue for the future. Okay. Thanks. I'll leave it to my other colleagues at the moment. Thank you, Christophe. The next question comes from Alessandro Folletti from Octavian. Please go ahead. Yes. Good morning. Can you hear me well? Yes. Alessandro. Okay. Thank you very much. Thank you for taking my question. I have a couple. If you don't mind, I would like to take them 1 by 1 because they are sort of different in nature. Maybe sticking with the financials a little bit. I have the impression, but this is really an I have the impression that your business is relatively capital intensive with 8% capital to sales. Can you give an indication of your ROIC or return on invested capital? Right. Thanks, Alexandre. Jenny, would you like to? Our capital intensity excluding the large growth projects we invested in is relatively in line with our peers. And as we've mentioned, this year our CapEx will be still slightly elevated at 9% of revenue based on some carry forward CapEx from last year And our continuing product investment and we expect in the future to return to levels of 7% to 8% of revenue. And with respect to return on invested capital? I think at this point, we don't expect Radical change to that. Under Sulser terminology, then we had return on capitals that were More or less in line with the industry standards. So I don't think you could take your model anything different. Can you remind me the industry standard? Sorry, I don't know that. Mid change. Right. Thank you very much. And one maybe question related to that. Under Solter, all the targets, etcetera, were based on operational EBITA. And you seem to go towards EBITDA. Can you tell us why that's a better number? Simply because we want to be more relevant and more comparative To our peers, and they tend to be using adjusted EBITDA. Operational or adjusted is more or less the same definition. And then I have a final question. I don't know who will answer it. It's more related to the business and your growth strategy. I don't remember who it was, but one of your maybe the guy that spoke about drug injection Made a comment that switching costs can be very high for your clients because you have product and device certification. And hence, your clients are very sticky. Now I was wondering if this of course, When you present it like this, it sounds very, very, very positive, and I'm sure it is for the clients you have. But Isn't it all an obstacle to grow if you want to gain market share? It means taking the client away from somebody else. How do you do that? Right. Thank you, Alessandro. Well, I will start answering the question then maybe Marco and Holger because So the business model is similar actually for drug delivery and dental, they can complement. But I think customer stickiness It's something that probably all of our segments experience. Same is valid for beauty, where we launch a product with 1 customer and We work through the lifetime of the product. And that does not disturb us also to bid for other products being launched by that customer Or other products being launched by different customers. So but in general, in these industries, you Today throughout the lifetime of our product because of switching costs out of regulation or out of convenience or quality concerns is too high. That having said, you can still bid for new products coming up and see that you can get a piece of slice of new products being launched. Would you like to did I cover it more or less completely or you guys want to add something? I can add 2 things. Alessandro, good morning. I mean, for us, the main source of growth is either having biosimilars coming onto the market On the other side, new molecules coming onto the market. So that means we have 2 sources fueling the growth going forward. And accordingly, we see tremendous opportunities. All right. Thank you very much. Okay. Thank you for this interesting presentation. Thank you, Alessandro. The next question comes from Sebastian Faury from UBS. Please go ahead. Hello. Can you hear me? Yes, Sebastian. Perfect. Great. I have a couple of questions. I would like to go through them 1 by 1. First one would be on raw materials that I'm just on the right page. It's pretty much just plastic, right? And if that's the case, how quickly you are affected by price changes by your own materials, some hedging, some inventory, how could I think in that context? Right. It's predominantly resin, you're right. And then to some extent also steel. And essentially, last year when the pricing was low, we actually used the opportunity to stock up. Now with the economies, pretty much you can say that economies are overheating, so the prices are going up again. Then again, our business model allows us to go back to our customers and pass on the price increase So partially or sometimes fully to our customers. And so far, we've been doing that pretty successfully. And what helps us is that our customers also are using the same resins. So they are exposed exactly to the same market trends. I hope that answers your question. So that means your contracts have normally some sort of pass on clause with a sort of a half year delay or something. Is that the way of thinking in that contract? Yes, yes. Perfect. Second question on customer concentration overall. Is there any customer that is sort of Presenting 5% or 10% of your overall sales exposure? I do not believe so, no. We have Some customers that we share across the segments, but nobody is like 10% or more actually off Of the Medmix revenue. It's pretty diversified. Understood. And with regard to the underlying financials, so sort of a full set of And cash flow and so on. Will that provider be later in the process? Or what are the plans there? Jenny, do you want to give some info on that? If I understand you correctly, so there'll be, of course, a full prospectus issued with 3 years of Financials historically 2016 to 2000 sorry, 2018, 2019 2020. And then we will release our half year accounts as well. And Rosalia Haefje, who accounts from COE, balance sheet cash flow calculation and so on for MetMx? Yes. Perfect. Then with regard to transitional service agreements, can you elaborate a little bit more what are the sort of costs that you will need to bear in the beginning? And what sort of costs you will be left thereafter once the transitional service agreements expire? So we will have transitional service level agreements 18 to 24 months with Sulser. We've already agreed that that will be on the same basis that we paid today, so no change. And then we'll use the opportunity of that period To either take some of the staff over or to build our own services up, so there'll be a very smooth impact on both Sulser And on Medmix. And today's level is around like? On the appropriate level required for the services we receive from Sulzer. Okay. Understood. With regard to the management incentivization, Is there any sort of change likely or how it is how is the management overall incentivized going forward? Are some ESG angles reflected in that? Is the incentivization linked to the spin off success? Can you give a little bit more details in this context? Right. I think it's a good question for Greg to answer, for Greg and Jill on the Incentivization of the management team. Yes. I think Jill wanted to Jill, we're going to share a table. Jill wanted to complete the answer on the services provided by Solter, just An amount an order of magnitude so you guys know what we're talking about. Exactly. So in case you're modeling, I mean, we're talking about a magnitude of close €10,000,000 So it's not really Much because Mad Mix has been set up right from the beginning to be very self sufficient. We had The idea to have a stand alone over time, and we have always expressed that as part of our strategy. So from that perspective, it's really very core services, which over time during the time of 18 to 24 months will be smoothly transfer. And it is an amount that is really not going to affect the profitability of both sides at all. All right. Thank you, Jill. I think the question for me was what are the incentives that we'll put in place? Yes. We're actually in the process of building those. We did a benchmarking exercise to see what The MEDMIGS peers do because we want to make sure that we just don't transpose the Solter model. At the end of the day, it's a very different business model and We want to make sure that whatever we come up with supports the success of the business model of Vendix. So as I said, it'll be pretty similar to what you're seeing in comparable peers. But I'll give you an answer on that a little bit later in the summer. Understood. It's most likely there are also some sort of incentive related to a successful spin off or spin part of that or really underlying operations only? No, no, we're talking about long term incentives as a standalone business. We're not talking here about incentives for the spin off of the business. The spin off of the business is it's our job. That's part of what we're doing at Solter. Once again, it's more the what are the KPIs? Are we going with restricted shares or other instruments for long term incentives. What will be the indicators that we'll base that on? What would be the peer group that we compare ourselves to? These are the things that we're trying to build currently. And we're making good progress, But I just don't have a definitive answer to give you at this point. I'll have that later in the summer. Understood. And I don't want to take too much of your time. Just very quick last one. With regard to the costs that are likely being borne by or that were caused by this whole transaction, will that be staying with Solter or will that be staying with MedMax? Jill, you want to talk transaction costs? Yes. Well, most of the transaction costs are actually related to the capital increase. So It will be actually offset against the proceeds of the capital increase. And we will have around €6,000,000 to €8,000,000 On the which will be treated as one off, about 2,000,000 will stay with Solter and the balance will be in that mix. All right. And if you guys are worried about proximity, both Jill and I are fully vaccinated. Yes. So a lot of what you're concerned about in terms of the rounding the cost Of Castell as well as the TSA. It's really a rounding error in your modeling. Yes. Understood. Many thanks. Those are all my questions for now. The next question is a follow-up question from Christoph Greitel from Credit Suisse. Please go ahead. Thank you, operator. Yes, just give a few on that. Actually, we have now kind of a history of capitalizing R and D costs by chance. You're asking whether we're capitalizing R and D costs, is that the question? Exactly. What part? I mean, I guess some do, some don't. Traditionally, we have not capitalized significant amounts of R and D in our balance sheet, and we don't expect that going forward. Yes. That sounds good to me. And then on China, you called that out as the main growth market. And I saw that Actually, the Head of China is the only geographical head on your leadership team. What percentage of sales represents China. And in what business is it the most prominent? I did not get the 2nd part of your question, Christian. The line was breaking up. 1% of sales is China and basically, Yes. Right. Okay. The China sales to Customers today is a very small amount. And this is the reason why we're actually looking Into M and A opportunities to turn that around. So we have indeed hired a very seasoned leader in China. He joined us a couple of months ago. We do have active pipeline opportunities, because today really, whether it is In beauty or whether it is an industry, we are selling to Western companies affiliates in China. And in order for us to access the local Chinese chemical or adhesive In order for us to access the cosmetic players, and there's a huge cosmetics market in China, You need to be Chinese, you need to be local and this is why we're looking into acquisitions. Gertz, if I may add, China is not new for us. Gertz's business Medmix has a significant factory in China. But as Gertz said, Until you've got boots on the ground and people serving local customers and part of the industrial tissue in China, You'll end up serving mostly international customers out of China, and that's what we aim to change. Okay. And then the last question I have on the Board of Directors. Actually, could you discuss what is the likely intention For that board, particularly kind of the size, the capabilities you're looking at and obviously kind of what It's a likely representation by the main shareholder of Solteron, which will, I guess, also be the main shareholder At Medmix. Sure. The Board of Directors of Medmix, as part of the demerger process in Switzerland, We had to communicate Board member names to launch the process as part of the report that's publicly available to you guys. And so we went with the minimal version, which is 3 people at this point. But with the stated intention as part of the report, it's announced in there to have a Board of anywhere between 5 7 people. Our aim in the medium term is To start with the 3 people that are listed and to add 2 independents and to be able to have by the first AGM in probably in April 2022, have a Board of Directors with 5 members, including as I said these 2 independents that we will look for in the markets with a focus on dental and healthcare backgrounds probably. And the 3 initial board members that are already announced are myself as Chairman or I should believe I'm being impolite, Jill Lee as a Director, myself as Chairman and Marco Musetti who used to be a Solter Board member, but dropped off the Solter Board at the last AGM so that he could come on to the Applicator Systems Board, the MEDMIX Board will be the 3rd member. And the other 2 that we are anticipating as I said will be independents and probably both from the health care from a health care background. We reserve the right to extend to 7%. But I think if we're able to be at 5% by the first AGM, which is which Tentatively in April 2022, I think that'd be a good start. So there won't be any representation from the main shareholder, I understand correctly? In my discussions with them, they're not insisting on that. They understand that they're playing a smaller role in this thing. They accepted the dilution as you saw, the capital increase in which they can't take part. So they accepted the dilution and they accept that they'll have a smaller role. And once again, they're not insisting at this The next question comes from Arben Hazani from Fronthovel. Please go ahead. Hello. Thank you. So I would just have a short question. So Could you specify so in your sales growth targets, what share will be an organic? Can you give their ballpark number? Right. The 8% midterm CAGR That we show throughout the presentation is organic aspiration. I see. Got it. Thank you. Welcome. We have a follow-up question from Christian Arnold from Stifel, Schweit AG. Please go ahead. Thank you. You gave us some information about selected customers per year, per end market. Thank you for that. I believe Merck is the by far the most important customer on in the drug delivery part. And it happened that it was at the very top of this box you showed. So can I read the other boxes in the same way that, for example, in the industrial And Mark, the most important customers for you are seat car, ankles, 3 ms? That's a very good observation. Honestly, when composing the chart, we did not think about that way. But also, yes, Merck is a significant customer drug delivery. Cieca and Henkel are big customers for adhesives, but There's not necessarily a correlation on where they are on that box. Okay. But it's not wrong, my observation. Those are big customers. Whether they are the biggest ones, I'm really not sure. Okay. Okay. Do Do you want to say something about the selected competitors boxes? Are they happen to be structured in the same way? Right. Well, the easiest way how to answer that, I think the peer or the competitor that is Closer to or closest to Medmix in terms of how the portfolio looks like is probably Nordson. Then again, if you compare Medmix to Nordson, we have a higher proportion of consumables in our portfolio, while also has some capital equipment. Medmix is also bigger on healthcare. And then you have As you go into the different segments, you have some more segment specific competitors. So Beauty has, for example, Aptar that also has little bit medical devices, but we are much bigger on healthcare there. You have Ipsumet, for example, in drug delivery. Dental, I believe, is a little bit more fragmented. So, yes, that's kind of the picture. Thanks. You're welcome. The next question comes from Patrick Ruysseid from UBS. Please go ahead. Yes. Thanks for taking the follow ups. First, on your FX exposure, is there any A transactional exposure we should be aware of. I mean, you have 12 sites. You are globally set up. But Is there any transaction risk we should be aware of also with regards to your own, input currencies versus sales currencies, etcetera? Thanks. Right. Thanks, Patrick. Jenny? Actually, on a transactional basis, we're relatively well naturally hedged. Our core FX currencies are euros, Swiss francs and U. S. Dollars. Okay. So no material transaction hedge. Good. And then a quick one on dental. I think you talked about the sorry, drug delivery, where you talked about the €100,000,000 sales ambition by 2025. Is it correct that I assume that this is an organic sales initiative and acquisitions with Comonta? Yes, Patrick. That's organic. The time to market in drug delivery is 3 to 5 years. So When we last year went out and said that our ambition is €100,000,000 that's a very large part of that is substantiated by pipeline that we have. Do you want to add something, Marco, on top? I think that's spot on. Very good. And then the last one, just quickly on the tax rate, what you are expecting here for MEDDPIC? That's a question for Jenny, I believe. Yes. We gave some guidance in the midterm outlook there. It's this year around 12% 15% and going forward mid teens. Okay. Thanks. We have a follow-up question from Christoph Grechler from Credit Suisse. Please go ahead. Yes. Thank you. Actually, kind of on the drug delivery business, could you comment on your Development project pipeline, how large that is and in what stages of development and maybe a split into bio Chemicals and Materials and Materials and also on the auto injector kind of business. We actually have a lead customer for Product franchise, yes. Okay. Thanks, Christoph. Marco, can you take it? Yes. I mean, good question actually. I think we have a pipeline built up now that is robust. And given our size, I would call it Super competitive. Some of the projects are already in the works. And we mentioned earlier on that we have secured a significant order already from a U. S. Biotech customer. So this will translate into further sales going forward. So that said, I mean, the €100,000,000 that we have as our target are organic. And it's a pipeline we have. We are confident really to achieve it. There is more quality you can share also. We are all numeric people. I mean, actually, I'm reluctant to share, I mean, the pipeline buildup, I mean, because, I mean, we have competitors that would be also highly interested going forward. I mean, it's a small industry. Everybody talks to each other, I understand. But Anyway, it was worth a try. And then maybe just on the auto injector plant, is there a lead customer there? This is a project in development. And I mean, Gerts mentioned earlier on that we have this 2 to 3 year horizon for customers coming into the commercialization phase, and this would also apply for this platform. Okay. Good to know. And then basically on the Manufacturing and our footprint. I mean, can I read this now, your comments that historically, we invested like kind of, think if I remember right, 5% to 6% CapEx to sales and now you intend to do 7% to 8%? Is it a reflection of no past underinvestment or is the mark up poorly kind of incremental growth CapEx? Right. Jenny, do you want to take? Absolutely. Incremental growth CapEx In the short to medium term, especially as we bring our drug delivery and other health care product innovations to market And then we'll revert back towards a more normalized level in the future. Okay. And It's for your growth plans, kind of the footprint. Is this sufficient? Or is there a Necessity to build additional plants. I saw you present well in Latin America and Asia already, so but Just wondering also from a cost point of view, you seem to be a bit geared to the Western world, But not in our cannabis would be required at some stage. Is there any thought around that? Of course, that will be under assessment over time. At the moment, we have capacity. And as Gijs mentioned, we have multimodal factories that share across our Commercial facing platforms. So for now, no intent to build new plants. And then as the new product Introduction happens as the volume grows, especially in drug delivery, then we'll continually reassess. Actually, what we need to do is we need to do catch up On drug delivery to be able to accommodate the order intake of the new customers that we get now is D Flex. But apart from that, there is nothing else on the horizon. Okay. Thank you. All right. We have a follow-up question from Sebastian Froogle from UBS. Please go ahead. Mr. Vogel, your line is open. Yes. Can you hear me now? Yes. Sorry for that. Yes, 2 quick follow-up questions. One regarding to the customer concentration I was asking before. I did understand you correctly. There is no customer above 5% on the group sales exposure, right? I don't have the exact numbers, but as I said before, I think we're very well diversified in terms of customers. Understood. And then a quick question on IFRS 16 in that regard. Do you make much use Of leased assets and what sort of investments you're taking, your ROE assets? Is that something of a size of a number that I should keep in mind? On top of your sort of guided CapEx investments, we will treat them as sort of CapEx. Right. So to date, we haven't had a material portion of our assets in lease liabilities. There is a small portion predominantly through Switzerland. Understood. Many thanks. Ladies and gentlemen, so far there are no more questions from the phone. All right. So in that case, We're going to wrap up today's session. So thank you very much for your participation. Thank you very much for your interest, asking so many questions. All of us Really here are super excited, super motivated by the future ahead of us. And just to summarize, why invest In Medmix, there are really three things, high growth, high margins, powered by technology. And I hope you are As we are about our future. And now we're going to take a break and we're going to be back at 1:30 this afternoon with the Zoltor presentation. Thank you. Hello again, everybody. My name is Gregor Puguillaume, I'm the CEO of Solter and it's a pleasure to have you with us this afternoon to talk about these Solter Flow Control businesses. Some of you were maybe part of our morning session. It will follow pretty much the same format, Presentation followed by Q and A with the full executive team of Solter. With no further ado, let me get through the presentation. Disclaimer, The agenda, short introduction from me, Armand Soe, our Chief Sustainability Officer and Chief Human Resources Officer will talk about our ESG framework and targets. Then the 3 division presidents will talk about their respective businesses. And Jill will walk you through our financials and targets and I will wrap up before we take questions. So, Solzer pro form a post spin off. So it doesn't mention applicator systems because this presentation describes Solter without applicator systems. So Solter refocused on its flow control scope. And as you know, Solter is one of the leaders in flow control with an attractive portfolio of technologies that cover many applications that go to the heart of sustainability. We have 3 businesses: Our pumps business, which is actually pumps and other equipment as you'll see in the presentation. We've got compressors and grinders and other things. But it's mostly pumps and other things. Our pumps business, which is about $1,300,000,000 was about $1,300,000,000 in 2020 and a 4 point 3% profitability. This year you'll see that the profitability in 2021 will be above 5%. And that business covers prompts from highly engineered to highly standardized from applications that go all the way from water to energy. The rotating equipment services about EUR 1,000,000,000 in 2020, 13.9% up EBITDA margin. As you'll see that will go to 14% this year and that business is the market leader in service for rotating equipment. Some of it is pumps, including our pumps, but also other people's pumps and other people's compressors, turbines, motors and the likes. Everything that's part of our customers' value chain and that rotates. And our Chemtech business, which is the market leader in separation technology for the chemical industry. About 70% of the business is addressing the needs of chemical customers. Also about 15% in refining and it has an emerging position in biopolymers and recycling that we call renewable technologies and that we're very excited about. And it's about a €600,000,000 business, 9.6% margin last year. And as you'll see this year, it'll go to 10%. We will give you in this presentation midterm targets also. So we'll be very descriptive as to where we see these businesses going. We believe we've got an exciting story to tell. Moving on to the next slide. Solter pro form a without applicator systems is about 13,000 employees, 180 production and service locations presence in 100 countries and a business that's about CHF 3,000,000,000 of sales in 2021 estimate and will be around 9% Operational profitability, up EBITDA for 2021. And keep in mind that 50% of our business is aftermarket. So that goes to resilience. Solter has a very experienced senior leadership team. All the people on the slide are Also present today and they will all be presenting. Jill has been our CFO for the last 3 years. She was a Board member and the Chair of our Audit Committee for 6 years before that. Almond's been our Head of HR for a bit more than 5 years and he's been our Sustainability Officer for a year. Frederic Lalain has been running our pumps business for Probably almost two and a half years now and before that he was the Head of Sales and Marketing for the company. Daniel Bischoffberger has been running our service business for the last 5 years almost, joining us at the time from ABB. And Thorsten Wintergasten has been running our Chemtech business for almost 5 years now. And he's a long term Solter guy. He was with Chemtech for many years before that. So an experienced team, a cohesive team and you'll hear from all of these people today. We have Very simple straightforward priorities of things that we will focus on as Solter Flow Control. So Solter without the applicator business, We focused on flow control. We're essentially focusing on 4 things. We're focusing on growing our pumps business in water and in industry. Water is a particular focus for us. You saw that we've made acquisitions over the last few years. We have a very good portfolio And we're making headways and we're excited about the prospects of that business because once again a lot of what we do is around wastewater. It's a major sustainability and we think we've got great solutions to bring to the market. We will leverage our unique service proposition with digital and additive manufacturing to build an even stronger service business. Daniel Bischoffberger will walk you through the major progress that we've made on both the digital and the additive side and how that contributes to reinventing our service model, making us more competitive from a cost perspective, making us faster and allowing us to deliver operational models, business models to customers that are closer to their needs today and tomorrow. And then in Chemtech, our ambition is to not only defend our chemical leadership and as you know, the chemical spending is projected to continue to go up for the foreseeable future. The world is growing and the products were getting more complex. So we want to defend our chemical leadership, but we also want to boost our biopolymers and recycling offering in Chemtech. We think that's exciting. We are growing fast in that area and we've got great technologies that Thorsten will tell you about. And then finally, the phrasing of the 4th point is important. It's not we want to focus on ESG and we want to have good results. It's we want to use ESG as the key to strong sustainable financial performance. Solter has always been about the S and the G, the social responsibility at Solter is ingrained. We work with our people closely. We Treat people well, we are active in our communities and we try to make the world a better place. From a governance perspective, we've always been committed to best practice Government Principles. But what we really want to stress and what we really want to show people and get people excited about Is everything that we're doing on the East side, not only reducing our emissions and our water usage and all these classical things that we've been doing for many years, But how our products contribute to finding solutions to some of the world's most pressing issues in terms of sustainability. Armand will walk you through that. So no further ado, I'll hand over to Armand, who will walk you through our sustainability Framework and explain to you what our targets are. Armand? Thank you, Gregor. Good afternoon. My name is Armand Sohuet, and I'm the Chief Sustainability Officer for SUSE. My responsibilities also include human TOC's Real Estate, Communications and Health and Safety. This combination of critical functions Shows our commitment to embedding our ESG drivers in everything we do. Having previously worked for companies like Novartis, Peugeot ONG. I can say that the best 5 years of my professional life have been with SUSE. And why? Simply because at SUSE, we are making a real impact for the world. Today, I want to leave you with 3 key messages on ESG. 1, We have a solid framework in place and a strong ESG position. 2, we have proven expertise in areas critical to address the pressing challenges after the planet. And 3, we have an engaged workforce ready to go the extra mile and make our ambitious objectives a reality, team. Objectives, which I will now talk you through. Sustainability at SUSE can be summarized in 3 main Teams, minimize, enable and engage. Let's have a closer look at these three objectives. We have set ourselves an ambitious target to minimize our environmental impact, committing to reducing our carbon footprint by 30% by 2,030 and become carbon neutral by 2,050. We have identified the key measures of our carbon footprint across all critical areas: water consumption, waste, energy and greenhouse gas emissions. And we have monitoring and measurements in place today plus a proven track record of addressing these topics. In particular, greenhouse gases are a critical topic for our internal measurements. You can see that electricity represents 65% of our total greenhouse gas emissions. The switch 2 renewable energies in several locations at SUSE along with other actions has reflected in the drop of our greenhouse gas emissions by 6.4% in 2020. We have a plan to roll out these measures across our global locations, giving us confidence in our ability to achieve our overall target of 30x30, neutral by 50. That is our internal story, but here is why I'm truly excited. When I said earlier, at SUSE you can make an impact, I meant the authority You have a new job to make decisions. But above all, I meant the expertise we have at SUSE to address The most pressing environmental challenges of the planet. You will hear throughout the afternoon many examples of technologies driving circularity, Improved efficiency and low carbon substitution. I would like to focus for a moment on water, which is of course a vital for life. According to worldwater.org, a nonprofit organization aimed at Raising the awareness of water scarcity, we have today 2,400,000,000 human beings living in water scarce areas And this number will increase to €3,000,000,000 in 2,030. Through our water business line And with our expertise in water transformation, desalination and water treatment, we have the tools to help fight water shortage. Let me now take you through 3 example, which further demonstrates how we're using our technical expertise. Firstly, textile recycling. Today, 85% of used textile ends up in landfills and only 1% of the textile production is made of recycled materials. It has a huge negative impact on the planet. We are partnering with HCM and Wernigan to recycle old textiles into new, shifting into a circular economy. And who knows? Maybe the next shirts you'll buy will be engineered by Swissair Technology. Secondly, plastic substitution. I have a compost in my garden and I made a simple experience. I put 1 of our biopolymer spoons in my compost. And after 2 months, The spoon was gone. With a traditional spoon, this would have taken 200 years. That's the impact that Sousa technology can have on the world. Thirdly, efficiency through artificial intelligence. Blue Box is a product we developed based on machine learning, which makes Predictive maintenance possible to gain insight on anomalies and prevent imminent failures. With Blue Box, we are like a doctor taking the pulse of vibrations, temperature and prevent the next heart attack. This increases product life, saving our customers money and helping the planet. These are all fantastic projects, but only Committed people can make them happen. To achieve our ambitious plan, We need engaged employees. We need them to feel they're safe, they are heard and that they live in an inclusive environment. We need them to be connected to their local communities and we want them to be fully mobilized. In 2017, we started an health and well-being initiative called SULZER IN Motion. We had 100 participants for the first edition. I was particularly pleased to see that 400 employees Signed up for these initiatives in May 2021. And even more because each time an employee participates, we make a donation to UNICEF. I said 4,000 employees? 4,000. Oh, 4 100. Oh, I'm really sorry, 4,000 employees. Yes, yes, no, 4,000 400 would be minimums. I'm really, really sorry for that. Talking of engagement, these are the last results. All dream And we are above the norm across all categories for manufacturing, something we will continue to aim for. And overall on ESG, we are proud to be rated by MSCI with AA rating. Sorry. No, no, it's okay. I was just right. That's sorry, sorry. So and Yes, that was for the SUSE employee opinion survey. And that's when I said we're all drilling and we're above the manufacturing norm and we aim to continue in that direction. And the next And the next slide probably that's the one we have there, which is on the MSCI rating. Yes. And overall on ESG, we are proud to be rated by MSCI with a AA rating. We are clearly ahead of our We benchmark and our firm intention is to continue building on these strong foundations. In conclusion, my key messages today are that: One, we have a solid framework in place and a strong ESG position. 2, we have proven expertise in areas crucial to address the challenges of the planet. And 3, We have an engaged workforce ready to make ambitious objectives a reality. As I said at the beginning, at SUSO, we're making a real impact for the world, And I am positive that the years to come will be even more exciting. Thank you. Good afternoon. I am Frederic Lalain, the Head of the PEM division. And I'm extremely happy today to present that division and its prospects. Together with the management, we are proud to lead this activity that carries a very long history, more than 150 years of Swiss engineering and innovation, but is also very well positioned to capture Future growth opportunities. Few words about me. Following an international career of 25 years in the energy sector, both in EPC and equipment companies. I joined Sulzer in 2016 as the Chief Commercial Officer for the group, and I've been running the pump division since January 2019. Let me describe our business. The division provides a full range of pumping solutions from standard off the shelf products, sold via distributors to highly engineered tailor made solutions from the energy sector. The division grew over the years, thanks to a unique combination of technologies, Process expertise, sector specific knowledge and customer proximity. We are organized to serve our customers in 3 businesses, Water being now our first market with 40% of our orders. Industrial applications and energy at 30% each. Let's have a look at the trends across these markets. All of our markets are expected to grow steadily in the next year. The wastewater segment is supported by investment stimulus packages and the need to replace or upgrade aging infrastructure in Europe and North America. The desalination market is also expanding quickly, thanks to large new project in the Middle East and in North Africa. In industrial application, this segment is recovering swiftly after the COVID downturn. And our pulp and paper activities are supported by the booming demand for board and tissues. In oil and gas, the market bottomed in 2021, but the recovery is already expected next year, supported by large upstream and downstream investment plans of the national oil companies such as Aramco, Petrobras or Catar Gas. In the power sector, the steep decline of coal based generation will be compensated by the transition towards renewables, gas and Nuclear. Let's focus now on the water market, which becomes in 2021 our largest segment. Solter is present throughout the entire ecosystem We've one of the broadest portfolio of products and solutions: water intake clean water processing, including desalination and wastewater management, water pipeline. We offer the full range of products and solutions for all segments. We are not only selling pumps, but we are offering an extending range of products, including grinders, screens, filters, Compressors and Monitoring Solutions. You drink today a glass of water from the tap. If it had not touched a Sulzer product on the way in, it will most likely go through one of our equipment on the way out. Water overview. Let me explain how we will drive our growth beyond pumps. The 2 companies acquired by Sulzer, GWC, Nordic Water, Develop unique technologies and products well recognized in their regional markets: grinders, screens and solid removal in North America for GWC filtration, sedimentation, sludge management in Europe for Nordic Water. Thanks to our global sales network, we will deploy this solution on a merger scale in North America, Europe and Asia. The magnetic I have some problem here. The magnetic bearing turbocompressor technology developed by Sulzer is already a worldwide success. The growers are maintenance free, at least for the 1st 10 years of operation and are highly efficient in terms of water consumption. In wastewater treatment, the cost of energy represents around 50% of the operation and the operating expenses. Our solution offers a reduction of more than 50% on energy cost compared to traditional technologies. These compressors are manufactured in Finland and in operation in more than 40 countries worldwide. I would like to come back to the previous slide just to highlight the growth drivers in this market. Growth drivers is growing population and organization towards sustainability and natural scarcity of natural resources and rapidly changing in this legislation. Overall, the water market is a €12,000,000,000 business, growing at 4% per annum. And we expect, thanks to our technology, to grow more than the market, targeting 5% to 7%. Our EBITDA is approaching 10%, a little bit behind the market leader, but we do see, Thanks to our products and large portfolio, an improvement or mid term improvement between 150 to 300 basis points. What are success stories? To complement my presentation about the magnetic bearing compressors, I would like to highlight our contribution to one of the biggest treatment plant in Europe in Vienna and Austria. This plant has a treatment capacity of 15,000 liters of wastewater per second and is able to fill the equivalent of 25 Olympic swimming pools per hour. And by deploying our HST range of blowers in combination with high efficiency agitator, Sulzer helped the operator to reach its goal of carbon neutrality for the plant, avoiding the emission of 40,000 tons of CO2 per year. Similarly to wastewater, the energy consumption represents more than 50% of the operating expenses in a desalination plant. Reliability and energy efficiency were the key differentiators for Sulzer to be selected in Saudi Arabia for 1 of the largest plant in the kingdom. It will supply the daily consumption of 2,000,000 people. Market dynamics. Yes. The last slide of our water presentation is about the market dynamics. Sulzer enjoys a solid number 2 position in this segment and in the largest segment, wastewater, which is also one of the most complex in terms of technology. This overall market is highly fragmented and offer growth opportunity in every segment to deploy our portfolio of solutions. 1 of our growth priority We'll be to reenter into the clean market segment with a focus on North America. The desalination is a niche market driven by large projects in the Middle East and Africa. Solter enjoys over the years a leadership position, thanks to our recognized technology and proven reliability. Industry solution. Let's move to the presentation of the business industry, which is a multi segment market, a lot of focused players and where process expertise is a key differentiator. Sousa offers a complete portfolio of pumping solutions, Agitators, mixers and compressors developed for process critical applications in our targeted segments: Pulp and Paper, fertilizer, biofuels, metals and mining. Overview. Similarly to the water business, the industrial markets are expected to grow steadily at 3% per year, thanks to long term drivers, Sustainability, growing population and tightening of the legislation for industrial effluent treatment. Our priorities. Sulzer is highly positioned to capture these growth opportunities. We will capitalize on our technological and market leadership in pulp and paper to develop new solutions for wood fiber based textiles. Our Air and D teams also developed large slurry pumps, which have been sold in Europe and the Middle East, generating profitable aftermarket opportunities for parts replacement due to high abrasive and demanding operating conditions. Magnetic bearing compressors developed internally in Finland offer growth potential beyond pumping solutions, especially in the food and beverage segment where oil free equipment are mandatory. We are leveraging our deep application knowledge to generate profitable growth of our activity to 4% to 5% per year. Our operating profitability He's at par with market leaders at mid teen levels. We do expect some midterm upside around 100 basis points, mainly thanks to product mix optimization. A little bit about Pulp and Paper Industry Transformation. This industry is transforming itself very quickly. The slowdown due to COVID-nineteen is behind us And large investment plants are deployed worldwide in order to increase production capacities for board and tissues, but also to become more environmental friendly. Less carbon footprint, energy efficient equipment, reduction of effluent, development of wood fiber applications, bioplastic and recycling of raw materials are the key topics. With its comprehensive portfolio of solutions, Sulzer is ideally positioned to support this new wood fiber economy. And being a key member in the pulp and paper ecosystem Built around partnership between OEM, technology providers and end users, Souser is a company of choice for mixing and pumping solutions. And this unique expertise has been recognized by Metza Fibers, the world leader for wood based bioproducts. More than 500 pumps and agitators will be supplied by Sulzer for a new plant currently under consumption in Finland. At completion, it will be the largest production facility of wood bioproducts, so called biorefinery, in the Northern Hemisphere. Another example to illustrate the technology leadership of Sulzer is a fertilizer market. Sulzer Alstrom wear resistant pumps I've been designed to operate in harsh and abrasive environments. And following major successes in Europe and the Middle East, We will deploy this technology in North America. Our positioning, Number 1 in pulp and paper and biofuels, number 2 in fertilizers, Sulzer is ideally positioned to gain share in adjacent markets and Specialty Mining and Metal. It's a highly fragmented market with focused players active in specific segments and driven by process expertise. I will now complete the presentation of the by highlighting our references and the strong technological position in the energy sector. In the oil and gas segment, our products, Highly engineered, designed to order are present along the entire value chain: extraction, upstream, onshore, offshore, transportation, midstream pipelines, downstream, processing activities, refineries and petrochemical applications. In power generation, we offer a wide variety of solutions for gas, nuclear and renewables, tailor made to the needs of the operators. An example. Souser is a worldwide leader to supply pumps for critical applications in the nuclear industry for more than 60 years. And all FILL 58 reactors in operation in France are equipped with sulfur pumps, generating recurrent revenues for our service department. Let me describe now the 3 main growth drivers in the energy sector. The daily consumption of oil, which was above 100,000,000 barrels per day. During the peak of the crisis, the consumption went down to 80,000,000 barrels a day. Consequently, most of the projects in exploration production have been put on hold. Today, the consumption recovers Close to 95,000,000 barrels per day and even exceeding pre pandemic levels in USA and China. National oil companies such as Aramco, Petrobras, Sinopec keep on investing and have recently confirmed their ambitious plans both for upstream and downstream project. And of course, the last main growth driver for our division in the energy transition, The need to develop low CO2 applications, carbon capture solutions and deploy more renewable technologies in power generation. Sulzer is well positioned to grasp the opportunities and benefit from the market rebound, thanks to its global network of factories and service centers close to our customers. We intend to grow in line with the market 2% to 3% per year and we remain selective in our bidding activities. Our gross margin is expected to stay at mid teen level, at par with the competition, but we expect some leverage with a strong focus on operational excellence during projects execution. Let me present now 3 stories highlighting our technological leadership in the energy sector. Sulzer was selected 2 years ago by Qatar Gas to supply pumps to re inject liquid CO2 in order to improve the recovery of oil in reservoirs. The CO2 coming from the process is captured, liquefied and re injected into the well. This liquid CO2 replaces water, which is generally the fluid re injected, mainly coming in the Middle East from desalination plant. This technology avoids the cost and the environmental impact of desalination while capturing CO2. Sulzer Research Department in Winterthur Switzerland designed the complete system, which was later manufactured in Germany. For FPSO vessels, Floating production, storage and offloading, Sulzer is the undisputed global leader for the supply of water injection pumps. Thanks to a unique combination of technical expertise, manufacturing networks, Brazil, United Kingdom, Asia and local capabilities not only to design, produce, but also install and maintain these pumps during their lifetime. No one built an FPSO today without calling Sousa for the pumping systems. And in the power generation, in United States, Again, a new application for CO2 has been developed for a 300 megawatt gas plant. Liquid CO2 We'll be utilized in the plant as a working fluid into the generation cycle. And through there, we have been selected to design and deliver the pumping system for this application, a recognition of our unit expected in the liquid CO2. The market dynamics. In this market, we are number 2. We are very well positioned to capture Opportunities during the market rebound, especially following the project of the national oil companies I explained before. This is a highly fragmenting market with a lot of regional or segment focused player. Growing the installed base of Sulzer We've generated recurrent revenues, non cyclical for our service activity, both in oil and gas and in power segments. Let me explain now how all these stories are translated into financials. The Pump division presents a well balanced profile, both from market segments and geographical point of view. In the last years, the management focused its efforts on improving the profitability of operations from negative territories in 2017 up to 4.3% in 2020 despite the COVID crisis, thus showing the resilience of our business model. In 2021, we will be able to compensate the expected slowdown of our orders in the energy sector by grasping more opportunities in the Water and Industrial segments. We expect our revenues to grow in the range 8% to 10% versus 2020, generating an operating profitability above 5%. Midterm, the shift towards water and industry creates a path to an improved profitability in the range of 7% to 8%, while growing our revenues at a steady 3%, 4% per year. Here is the end of my presentation, and I would like to conclude by highlighting our key messages: unique positioning in the market, in the flow control activity, broad portfolio of technology beyond pumps, proximity to customers, Solid growth drivers in all segments, all these points being now translated for the division into profitable growth. Thanks for your attention. And I will hand over the presentation to Daniel for Rotating Equipment Services. Thank you, Frederic. So hi, good afternoon, and welcome also on my behalf. It's a pleasure to be with you today and to walk you through the exciting developments in our Service division, a business with a unique combination of technical competence and geographical proximity. I'm Daniel Bischberger. I've been at the helm of ARIES For the last 5 years, my background is in capital equipment service. In my career, I ran several large aftermarket business, most notably at ABB and Alstom. Our service division is €1,100,000,000 to €1,200,000,000 Roughly half is pump service, where we are an original equipment manufacturer and the market leader. The other half is service of other rotating equipment like turbines, compressors, electric motors or generators, where we are an independent service provider, but with the skill set of an OEM. On both sides of the businesses, Our differentiation is based on 2 unique qualities: unrivaled technology expertise and The ability to serve our customers locally everywhere around the world on their full product range, These products are all part of the same industrial value chain. Our ability to service all our customers' equipment under one roof HIM for highly technical applications allows us to maximize our asset utilization and makes us the most complete player on the market. So we are brought in what we cover. We are technically advanced And we are local. And we are an early mover and technology leader in additive manufacturing and advanced data analytics. As I will explain to you later in this presentation, these two fields are enabling us to reinvent the service business, creating not only a cost advantage, But also significant growth opportunity through new business models. In the next few slides, I will mainly address 2 important topics. 1, how can we mine the installed base, Our installed base and installed base of our competitors. And 2, how the transition towards a more sustainable industrial base is creating significant opportunities for us based on our unique skill set across all segments and continents. So let's start with the installed base. 15% of the installed base worldwide are Solterpump. That's a good start, but we only cover 50% of it today. And overall, we only have a 30% Share of customers' wallet. Some things the customer do themselves. Some things they rely on others. Sometimes due to historical lack of focus by Solter, this has changed. We have been engaged for the last few years in a very dynamic and impactful drive to reclaim our installed base. In addition, the 85% of the installed base, not Solter pumps, It's also a great opportunity. We are unique amongst pumps OEMs because we have a 3rd party turbine service business in which we reengineer and improve GE and Siemens high-tech gas turbine. By applying the same skill set to pumps, We have been eating out into our competition installed base. Today, we generate close to CHF 200,000,000 of revenue on non Solter pumps. So the message here is clear. We can deliver growth even when the market for new pumps is not growing. And as you will see later in our numbers, that's exactly what we have been doing. You might ask how we capture our competitors' installed base simply by turning their pumps Into Sulzer Pumps, up to 70% of the life cycle cost of a pump is energy consumption. In a world driven by sustainability, our customers Cannot afford to be complacent. We offer them the full refurbishment. We keep the original casing, the metal shell, Avoiding material waste as well as minimizing disruption on customer side caused by piping and or foundation changes. But everything inside the casing is changed to the latest Solter design, optimizing the hydraulics and by that, generating very significant efficiency gains. This is highly technical task for which we have a unique set of competencies. The payback to customers is great, and it goes to the heart of our sustainability, minimizing waste, maximizing efficiency. Let's now discuss why the energy transition is a growth and value driver for our service business. Our customers must adapt their facility to make them more efficient and hence reducing their carbon footprint, But also to shift their product mix towards more sustainable product. An example of that is the shift towards green refineries, Where traditional refineries are modified to shift the output from fossil to biofuel, whenever you have to modify any existing facility, You need Solter. And for us, the more complex, the better. We're also benefiting from the trend towards distributor power. The heydays of the big power plants, however, distribute the power is what is needed to stabilize the power grid So that you can cope with the intermittent nature of renewables, battery storage alone will not fix it. Our strong position in aeroderivative service, Essentially, turbines that are derived from jet engines positions us ideally for this market trend. So here are 3 success stories that encapsulate our service mentality and uniqueness. Let's start with the example on the left side. The customer had a serious vibration issues with the non Solter pumps and corresponding electric motors. Furthermore, we wanted to increase the chemical plant output, but the pumps were the limiting factors. We fixed the vibration behavior on the shaft line And retrofitted 32 pumps, minimizing disruption while greatly improving plant output. The middle one, we repaired a geothermal steam turbine high up in the mountains of Indonesia. The steam turbine faced serious cracks in the shaft. The original equipment manufacturer advised the customer get a crane, put the turbine on the truck, drive the truck down the valley to the airport, Fly the Antonov to Thailand, repair the turbine and then do it again, just reverse. You can imagine that it takes forever. And I don't want to talk about the CO2 emission. Solter proposed specialized tooling, unique technical skills and everything done on customer side, Even if it's in a remote area and up in the mountain, minimizing downtime, maximizing sustainability. So no wonder the customer Has chosen Solter over the OEM. So the final example I would like to show you is on the right side. It's about business model agility. Big, big mining trucks, 400 tonnes when fully loaded, are more and more driven by electric motors. The electric motors are in each wheel. In the picture on the right, the yellow pieces are the wheel hubs where the electric motors are installed. And when one of these wheels fails, the truck is down. GEOINT proposed 52 week turnaround, 1 year to this customer. Solter proposed wheel swaps and retrofits completed in 8 weeks. So that means less than 2 months. Guess who got the job? I could add many more similar examples, but I would say the message here is clear. Being technical is great. Being technical and agile is even better. I would now like to take a moment to explain how we are inventing the service business model through technology. I'll start with the impact of digital. Many of you know, might know our advanced data analytics platform, Blue Box, an artificial intelligence based system that uses machine learning to create the digital twin of our customers' pumps. It won an Industry 4.0 award in 2018 and was a finalist of Microsoft Digital Transformation Competition last year. We use it for predictive maintenance, allowing our customers to anticipate failure events and maximize availability. It also enables an outcome based business model where we increasingly sell availability and better rather than just a pump. Additive manufacturing also plays a very important role. It is reinventing how we do business. We were one of the first movers in using additive to make pump parts. It's not straightforward as the type of pumps we make operate in difficult environments And they're often made of complex alloys. So we are breaking new ground here. Some big customer that you would recognize Vistas is their preferred partner for Additive. Parts business today run with part centers that are kind of manufacturing plants, which keep patterns, tools Podcasting parts. It's a complicated setup. But we are getting closer to a better way of doing business. Our parts are digitized. They are 3 d printed whenever feasible, and we are enabling a new business model, much closer to the customer and much more reactive. Our customers increasingly ask us to manage their spares for them for Sulzer and non Sulzer pump. This has been long on our customers' wish list, And Additive Technology finally makes it a reality. I'll show you now a short 40 seconds video about additive manufacturing made by Sulter. Solter is leading the field in cutting edge maintenance technology. Our additive manufacturing techniques work with a wide variety of metals To create custom parts for rotating equipment faster and better. Using laser metal deposition and selective laser melting, Solter can create complex 3 d components with reduced lead times. Parts are created by adding metal layer by layer, Putting material only where we need it. Our manufacturing processes make components quickly because there is no need for a pattern Our business is high margin and incredibly resilient. You can see that in our numbers. Over the last 5 years, we had 2 oil crisis and 1 pandemic. And every year, RES delivers growth, A good year, above 10% a challenging year, at least 2%. As explained, our penetration of the installed base Allows us to grow even when the market doesn't. And every year, RES delivers an EBITDA margin of around 14%. But Is that the ceiling? We believe our business can deliver mid term growth of 3% to 5 Percent per year and that profitability can trend towards 15%. Without the pandemic, we would have been on our way already in 2020. And the impacts of the pandemic are still visible this year. But the evolution of our mix towards high margin business Like retrofit as well as the cost reductions stemming from our digital strategy make us confident that we can reach this step This next step in our development. Let me conclude by summarizing what is at the heart of our success. We are technically advanced more than anyone else out there. We cover the full value chain of our customer Under one roof, we have a lot of runway in front of us by mining the installed base for growth. Yes, early adopters of digital and additive, opening up new horizons for our business. Thank you for your attention. We'll now hand over to Thorsten, Division President, Chemtech. Thank you, Daniel. Good afternoon. I'm delighted today to present you the beauty of the Kemtech business. It has always been a combination of great innovations and strict operational excellence. My name is Thorsten Wintergaster. I have been with Zolza in various functions for 23 years and leading the Kempek business since 5 years. I'm proud to be part of this business as we are a constant innovator contributing to the solutions which matter today. My presentation will focus on the 3 main points. 1st, The Kempek business is based on technology, innovation and intense know how about the implications of our customers. Secondly, our global customer proximity, especially in China and Asia, where the chemical markets are shifting to. Here, we can perfectly leverage our global footprint. And thirdly, our unique solutions in renewables, which are needed to solve some of the global problems of our planet. Kempe's focus has always been to bring industrial chemical process solutions for world scale plants on the market. This is our core expertise, and this is the reason why our customers love us so much. We help them to produce high value products. For the separation and purification of chemicals, we developed and we sell proprietary components and proprietary processes. But let me first explain who are our customers. These are, on one side, the bigger and smaller chemical and polymer manufacturers and the energy companies. But on the other side, we also serve the innovative entrepreneurs and universities with excellent ideas, which are first implemented in smaller demonstration scale and only in a second step developed to world scale sizes. Our customers produce all kinds of premium chemicals, pharmaceuticals, plastics, bioplastics or cleaner and efficient fuels. A chemical process consists always of 2 different steps: the chemical reaction and the following separation of purification. It's very much like cooking in the kitchen when you add different ingredients into the pan or pot. In a chemical process, it's a feed independently whether it's a fossil, bio based or recycled feed. When you cook, the different ingredients will give a tasty meal, But in the pan, there will stay also some impurities like the old oil, etcetera. Same in chemical processes after the reaction. Then we are required to clean the product and to separate the impurities from the desired final product. The value of the end products are defined by the performance and the separation and purification, and we have the right product portfolio for that. When you pass by on a highway a chemical plant, you can see the tall towers. Hidden inside of these towers, The separation and purification is taking place. And you have always to remember then that Zulze is inside 30% to 50% of all these columns. In this sketch, you see the inside of the tower, which is typically fully packed with our internals. These internals are the high-tech part. Remember, we only deliver the intelligent stuff inside, Not the column shelf itself, which is normally a piece with lower margin. We focus on technology. We delivered the internals for more than 100,000 columns for more than 500 different chemical applications. With that, we have a vast experience in distillation, which gives us and our customers the trust that we equip huge columns working on high performance. I will show you some examples later on. Crystallization is a purification technology, which is used for very high purities and which is Extremely efficient when it is combined in a hybrid system with distillation columns. We have a big database of the columns we delivered and how they perform for various chemical processes. With that, we learn and can further optimize our technology and our know how. Diapers are very illustrative example how we help to make babies happy. And when the babies are happy, the parents are happy. The gel which absorbs the liquid in the diaper is called super absorbent and is polymerized using acrylic acid. For this application, acrylic acid must be of very high purity, about 99.9%. We call it glacial acrylic acid. Our proprietary crystallization technology is the ideal technology for that. 80% of the total world production of 1,800,000 tonnes per year is manufactured using this type of Zolter technology. And the importance of acrylic acid and the super absorbance is further increasing. We are market leader because of 3 different elements. First, we have a unique world class technologies, which are used in smaller and bigger facilities. We are constantly innovating and continuously improving our products and our processes. They have a huge application know how, which is for our close cooperation with our clients of enormous importance. 2nd, we invest in future and protect our know how by filing many patents. Our annual rate of filing patents has been doubled the last years. And we already have a significant number of important patents or patent applications in the biobased segment. 3rd, we have a fully global setup close to our customer base. Here, our setup on our presence in China and Asia Pacific Specifically very important, the chemical markets are shifting to these regions, and we have been present there for decades with excellent relationships to our clients. And with the growth of China, also our columns have become bigger and bigger. This is also in our DNA. We think big. And with that, we help our clients to increase the size of the plants and reduce the OpEx and CapEx costs per tonne of the final end product. The components business is a part The technology plays a crucial role. Here, 2 companies dominate the world where the others follow. The service part is a lower margin business. There is no need to grow for the sake of it. We are in the business to support our customers in the supervision or the installation of our equipment. Historically, Wysulze has been in the business of the delivery of the technology components. We have now started to enter into the licensing business for specific processes in the chemicals or renewables business, which opens up for us an attractive market at higher margins with high growth. Also here, patents protect our know how and ensure that we will get the profit for the ideas of our engineers and scientists. For the performance of a distillation tower, the design and the choice of the right internals is key for success. While they look simple, they are in fact full of high technology. The tower is filled with the internals when the column is being installed. When the tower is closed and the plant has been started, everything has to work as it has been planned. Mistakes cost too much money for the plant owner. Therefore, markets in Asia like China have typically higher margins than other regions in the world. Chinese customers know the worst of the technology. They always go to bigger scales, stretching the limits. And for that, they are willing to pay for the highest quality. Some examples for such big columns in important chemical production plants. Sadara in Saudi Arabia is a joint venture between Saudi Aramco and DOW. It is one of the biggest chemical complexes, which was built in a single construction phase and consists of 26 single world class manufacturing units. With our unique application know how, we help them to unlock the potential of their columns. We also make the change into their plans with our own service people in record time. For such a job, hundreds of people need to be coordinated. Heng Li is one of the biggest producers of polyester fibers, and they are constantly investing upstream of the fiber process. PTA is one of the raw materials for that. In the North of China, in Dalian, they constructed a new fully integrated plant for which we delivered the internals for the biggest PTA columns in the world. For such size of columns, extensive experience is needed. The design cannot be made only by design tools. Chemical engineers with long standing experience are essential. Vanhooa is the biggest MDI producer in the world. Vanhooa is a chemical which is used in the automotive industry, in polyurethane and many other applications. Vanhoo has 30% market share globally and 65% market share in China. Vanhru and Zolte established a strategic partnership, and we support them to continuously improve their production plans. On the picture, you see their main location in Yantai. There, more than 300 columns are filled with Solter Technology. Kempek has 60% of our business in the chemicals and renewables markets. These are the segments which are growing fastest. The chemical market is forecasted to grow annually with 5%, which is higher than GDP growth. China alone will grow with 6.6%, which shows also the continuous shift to the East. With our global setup in China and Asia, we are well positioned to participate in this trend and to capture market share. The Renewables segment was last year 8% of our order intake. This segment is only in the early stages. It will significantly grow in the future, and we are well positioned here. We have a long history of innovations and milestones in our industry, but it's important to understand that Zolter's transition to renewable technologies started long time ago. Let me share a few examples. For the biopolymer polyolelactic acid, PLA, we had our first pilot plant already in 2007. The first large scale plant of up to 100,000 tonnes has been delivered in 2017. In between, we delivered equipment for medium sized plants to further improve the technology. Another example. In 2008, we delivered our patented products for the big SARS power carbon capture plant in Canada. We are seeing now a significant increase in carbon capture projects around the globe, which is one element for the decarbonization of the world. Our products and engineers are ready to participate in that journey. Ethanol production is a topic on which we worked for many years and delivered hundreds of columns. The steel anode project with Achal Amictal in 2019 is the first example where the off gas of the steel mill is converted by a bioprocess to ethanol. The European Union classified this project as bio based. Our polyurification technology is essential for such a project. All these examples show how our investments in the past have paid off and demonstrate the potential as our current investments come to the market. These new investments are especially required in the renewables area. Our industry is transforming. We go from fossil based feedstock to a bio based and recycled feedstock. And decarbonization plays an essential role to minimize the global warming. All these trends are supported by the consumers, the big brand owners and governmental regulations. We have unique Solter Technologies for all these areas available, and we focus our R and D development on these areas. The production of PLA, The biopolymer, which I mentioned before, is expected to double in the next 5 years. With our products, We contribute from the advantages of chemical recycling versus mechanical recycling. Yesterday, we announced our partnership with partnership with Blue Planet, a California based technology company, in developing solutions for carbon kaptcha in limestones, which can be used in the cement industry. Polylactic acid, PLA, is a polymer, which can be used in many applications And with that, we placed many fossil based plastics. PLA is a biopolymer, which can be reduced on world scale plants and is most industrialized. It is biodegradable. We are a leader in this space. Almost all PLA plants in the world use Wilsa technology. The market demand is asking for more supply, and recently new world scale plants have been already announced. We have additional projects around the globe From South America to Siberia and our desks. A few examples. For the Total Corvion plant in Thailand, we have been involved since the early stages of the project. The close interaction of the teams on both sides ensured the quality of the plant, The quality of PLA as the end product and the efficiency of the production process in terms of use of energy or raw materials. NatureWorks, a joint venture between CAGR and the Thai company PTT, operates the biggest PLA plant of 150,000 tonnes in the U. S. A. We help them with our proprietary purification technology to debottleneck the existing facilities. For such project is helpful that we have known the customer for many years and that we know what is technically possible. Teamwork with customers is essential. China is one of the regions with the biggest demand for PLA. It is part of their national sustainability program. A recent example is the delivery our technologies and equipment for a fully integrated sugar to PLA plant in Benghu in China. I told you before that our journey in PLA started already in 2007, but we also work on other biopolymers. PEF is a fructose based polymer. It has unique properties. It is more stable, and it has much better Barrier properties against oxygen and carbon dioxide. With that, it makes it ideal for beer in PET bottles or carbonated soft drinks. Other applications could also be monolayer films. PEF is recyclable. Solter used its proprietary technology in a pilot plant. Now we are working on the design of the demonstration plant, which enables us to deliver higher amount of path with which we can develop together with interested clients The final applications. The development of the applications together with the optimization of the polymerization is a complex stuff. This can only be done by a team of experts with different skill sets. We are prepared for that. Chemical recycling is key to solve one of the problems of our planet, and Zulze has technologies which are important. PEP is by far the biggest amount of waste plastics. We developed special purification technologies, which can be used for upgrading the waste stream. Our published project with Quantafuel is one example. For polystyrene, we have a special technology in use, which can purify the styrene from the waste Into a level of 99.95%, which means that the recycled products can be used for food packaging again. With that, we could create a fully circular system for recycling polystyrene. Together with our partner H and M, we are developing a closed loop for mixed Textiles, which consist of PET and cellulose fibers. The process allows the return of virgin like fibers at cost of the fossil based polymers. In our common company, 1 Again, we have created much interest by brand owners, retailers, future plant operators, waste collectors and many others. Having been told about the business over the last slides, I will explain to you now how it translates to the financial numbers. China and Southeast Asia Pacific contribute to 50% of our order intake. These are regions which are growing faster than the rest of the world and where the clients value the worth of technology and paid a premium for it. Our order intake grew consistently from €472,000,000 in 2016 to SEK 670,000,000 in 2019, similar for the sales numbers. We doubled our operational profitability from 20 Since 2019, we expected to cross the level of 10% in 2020, but the pandemic crisis delayed that. We are confident that we will reach that level this year. Over this presentation, I explained to you the Camtek business. Let me summarize it again. 1st, Kempek is a high technology business based on quality and purity. Continuous investments in our technologies and use of our application now helps us to move to adjacent areas beyond our traditional markets. Secondly, with the shift of the chemical markets to China and Asia Pacific, we are well positioned to grow faster and increase profitability. 3rd, we have solutions in our portfolio which matter today and which contributes to solve global problems. We will continue to go this way and have an ambitious target that the Renewables segment will grow to become more than 20% of Camtek's overall business. What I said leads to the midterm targets for Kemperesh. We expect to grow midterm with 5% to 7% per annum and to reach a profitability level of 11% to 12%. Thank you very much for your attention. It has been a pleasure for me to present you the business today. And now I hand over to Jill. Thank you, Tarsten. So good afternoon, everyone. Pleased to be going through our key financials with you as a solid set of numbers which demonstrates the success of our strategy and our execution. So first the highlights on our orders. Our orders have grown steadily over the years on the back of our unique technologies, Process know how and presence in all key markets. Growth is seen across all divisions. Even during 2020, we were able to achieve limited impact from the pandemic. For 2021, We are expecting to return to growth around 2% to 3% compared to the previous year. However, excluding oil and gas new equipment orders, which That meanwhile reduced to about 12% of total order intake. The expected growth for 2021 generated by all businesses, All the other businesses is in fact really 7%, so much higher than the 2% to 3% and is really masked By the drop in the energy market. Our portfolio has an increasing share of higher growth and higher margin businesses like Water and Aftermarket, which together form around 62% of our order intake in 2020. We are also expanding our industry segments and adding new segments like renewables and Chemtech, as you've just heard from Thorsten, thereby further enhancing our the profile of our portfolio. And geographically, Our order intake is well spread across all regions, as you can see from the doughnut, made possible through our strong global setup. Now moving on to sales. Our robust growth is also mirrored in the sales development, which has seen growth percentages Rising to teens, only slightly dropping in 2020 due to site assess restrictions and project delays arising from the pandemic. This year, we began our year with a solid order backlog of close to CHF 1,700,000,000, Swiss franc, an all time high when adjusted for FX impact. On the back of this solid backlog, Plus a good start which we have shared with you in Q1, we are expecting sales to grow by 6% to 8% for the year. Now let me talk about the operational profitability. Our operational profitability has been rising across All divisions through economic cycles, which of course make a CFO very happy to share. This underscores the results from our Portfolio mix, our operating leverage from the growth you've heard and the quality of our execution. In 2020, we acted fast And Ali, to drive cost squeeze and to take decisive structural actions to counter the impact of COVID-nineteen And the consequent drop in the energy markets. So we were able to keep our operational profitability stable in 2020. On top of this, the structural actions we took last year are expected to generate another €40,000,000 of cost savings in this year And a further €20,000,000 next year. And to date, we are well on track. For 2021, we are expecting to grow Our operational profitability to 9% of sales. Moving on, let me speak on the balance sheet. As you can see here, our net debt to EBITDA ratios have evolved robustly across the years. This highlights the strength of our balance sheet And our solid cash generation. On a reported level, our net debt to EBITDA ratios have been maintained within one time And only increased marginally to 1.3 times in 2020, which had really been an unprecedented year. Even when excluding the cash that we hold on behalf of T Wel, the ratios have stayed within 1.5 times and rose only marginally in 2020. Let me remind you that the CHF 261 1,000,000 of T Wealth's cash is not segregated and is accessible for business use. It's not interest bearing and does not have maturity. It will be in our possession until the U. S. Government gives And even if and when it does, we have no obligation to pay it out until we have the necessary financing available. And post Spind, off of Medmix, Solter expects to deleverage by 0.6 tonnes in net debt to EBITDA With that mix assuming an intercompany loan from Solter. So with this very healthy capital structure, we are well positioned to support The exciting growth that you have heard from my colleagues just now. Now let me move on to speak on our midterm targets. And this is really a summary of what you have Heard from my colleagues. Our divisions have shown you the exciting growth opportunities in their businesses and the strategic growth levers. All divisions are well placed organically grow above or with market. So altogether, we expect to generate an average 4% to 5% of growth per year for Solter over the long term over the mid term. On operational profitability, We expect our upward trajectory to continue. You have seen our track record of executing to our plans over economic cycles. Over midterm, all divisions expect to improve their profitability with overall Solter to reach operational profitability of 10% to 11% of sales. And with that, let me now hand over to Greg for his overall summary. Thank you. Thanks, Gilles. All right. So two slides And just to wrap up and then we'll open it up for questions. Okay, the first one is a reminder of our strategy. As I said, 4 strategic access to grow the water and industry part of our pumps business with a particular focus on water. But as we highlighted, as Frederic highlighted, in industry we have a lot of interesting plays such as the support of the fiber based economy through our pumps business. The second point is to essentially boost our service business by implementing the breakthroughs that we've made digital and additive to make the business even more competitive than it is We're winning on our market installed base. We're winning on our competitors installed base and we intend to accelerate that. And As explained by Daniel, we think we can continue to generate growth even when the market is not growing just by reclaiming the installed base and eating into other people's installed In Chemtech as eloquently explained by Thorsten, we aim to defend our chemical leadership. You saw the Major implementations that you have in China and the rest of Asia, but in all the parts of the world too. But we aim to do that while we boost our biopolymer and recycling These are technologies of the future, but also of the present. There are implementations every year and Solter is at the forefront of that. And finally, Armand explained why ESG as parts are only possible because our people are highly committed to Solter. 92% of people And Solter say that they go the extra mile to help Solter succeed, might even be 94, I'm not even sure of the exact number. It works because we share the same values and the values that we share are based on strong positions in growing markets. We combine a highly resilient portfolio as Jill explained as aftermarket is more than 50% of our business, but also an attractive exposure to macro trends, water, bio based. These are significant macro trends that are pulling part of our business forward. We're a record leader business that delivers growth and a very steady, slightly increasing every year level of margin come rain or shine or hell or high water. So really if you have to focus on the oil and gas risk within Solter, the relevant metric is a 12% of new projects, new products for oil and gas, not this long time. And we've been delivering steady improvements every year, rain or shine. We're Solter. We've been around for 200 years and we've remained relevant for 200 years and we've done that through technology based innovation. I think you can rely on us for that to continue. And keep in mind that our next business We will now begin the question and answer session. The first question comes from Patrick Raiffeitz from UBS. Please go ahead. Yes. Thanks for all these presentations, really insightful. Three questions. The first half Of the process, what you're seeing here, what would be the cost per tonne of carbon captured of this project? Our cooperation with Blue Planet is the responsible part of the chemistry, and And we are responsible to build everything in big scales to capture the carbon and then to that they apply the chemistry to the technology. And now we are going in the big scales, and the target is that we are at cost competitive prices. And what I can say is also there, Blue Planet by themselves. They are in discussion also with all these cement companies. So it will be highly effective. The industry needs solutions and these are market leading solutions. We're happy to play a significant role in them. It's Patrick, it's probably what Torsten is trying to tell you is it's a bit early to disclose the cost once the technology will have scaled, but we believe this will be competitive. Okay. Thanks. Thank you, Ben. And then the second question is on Textile Recycling. Just wondering what's your view on the commercialization road map here for this project? What are the key challenges you're facing? Is it costs? Is it technology? And yes, any color that would be We are it's not at the cost. It's we are at the development. The PET part of the process is already developed. We are now finalizing also the cellulose part of the technology. And in the second half of the year, we are going for the planning for the demonstration plant. We are currently reviewing potential locations in Europe for the demonstration plant. So the demonstration plant will come up then in 2022. And Patrick, a little bit of an understanding on Wernigan. Wernigan is an independent company. We're the largest shareholder, but we together with H and M control the company. We together with H and M have more than 50%. EarlyCon also came in for the fiber spinning aspect of it. And there's a number of other textile retailers that have an interest I have shown a strong interest in taking a stake in the company. So it's a technology that has market Pool, which is exciting because it's what it's telling us is that the customers, the people that will implement this technology, The H and Ms of this world actually believe in it enough to be an investor with us. And by the way, H and M brought us in initially. This is something that they had identified and they had also identified that Solter was an important part of making the technology scalable. Other questions? Yes. And one more, please. In water, you talked about the North American clean water opportunity as one of The main growth drivers. Can you elaborate a bit more on that? What is exactly the strategy to capture More of the North American Clean Water Management. I'll hand over to Frederic on this, but keep in mind that our water business is mostly a wastewater business today and our focus has been wastewater and industrial wastewater applications. And clean water It is a natural extension. We're already present. Frederic? Yes, absolutely. And the focus was on the waste, as explained. And in fact, we will leverage our strong position with these utilities, can be very large operators or municipalities. We have also deployed a network of service provider there and they were asking us to supply not only the wastewater but also the clean water equipment. So in fact, we had a hidden gem in our portfolio of products named Johnstone Pump. And this company was acquired 5 years ago. And in fact, now we are relaunching the Johnstone pump brand in North America, which are supplying vertical pump for the clean water. We launched it last September and after less than a year, it's a massive success because that was the reference in Clean Water in North America. So sometimes you just happen to have already the right brand and the right references in your portfolio. And I think that Being able to identify that is important. I would add that the U. S. Market is a market that is in large part goes through distributors and the secret to having asked to have the most complete product range. I think we have that in wastewater and clean water is a natural extension of that and we can sell that through the same channels. Other questions? Patrick, is that it for you? Yes. That's all. Thanks. Thanks very much. Thank you. I think we've got Aurelio waiting to ask your question. The next question comes from Aurelio Calderon from Morgan Stanley. Please go ahead. Hi, good afternoon, everyone, and thanks for taking my I have 3. I'll take them one at a time if possible. The first one is on basically the installed base that you are servicing in In Roasted Equipment Services. Why I guess attached to sort of question is, why would a third party or why would You'll be able to service a 3rd party pump better than the OEM? Good. First of all, You have to understand, we have 17,000 end user sites, and we have not really systematically approached those customers. Now we have Why do we believe we could get more out of it? And not from each and every customer, but we see a lot of customers are not happy. And we are just close by there, and we have a good footprint. We have shown already with our additive manufacturing, we are making leaps there. And I'm confident to get more business based on our technology. If I can also jump in on that. Why do we only have 50 percent coverage of our installed base, because that's what a lot of the OEMs in this industry ended up with 50% or less. And the reason for that is we were all technology driven, we're all run by engineers And everybody is excited about the new pump, the new big project. And historically people and businesses like ours were Not really paying a lot of attention to the installed base. I think the systematic mining of the installed base is something that has really only come of age in the last decades. So a lot of it you just have to reclaim and you reclaim it by offering better service and better solutions the people that are currently servicing customers. Now if you have a look at our competitors installed base, Daniel is not talking about disassembling, repairing and putting things back together. I mean, we'll do that, but the most exciting opportunities are the retrofit opportunities, where essentially You take somebody else's pump and you make it a better pump. You keep the metal shell, the casing, because frankly, it's a lot of metal and it's not a whole lot of added value. You change all the hydraulics inside, you change the impellers, you change the seals, you change the flow path essentially. And you build a pump that is sitting in the same shell, in the same footprint that has better performance than the previous pump that has lower energy intensity. And for the customer, it's a big win. So those are the technical solutions we're bringing to the market. We're not a low end player, we're a high end player and there's really not a whole lot of solutions like ours out there. Aurelio, you had 2 other questions, I think. Yes. Thank you very much. I guess the next one is on capital allocation and Gulf. Any obvious gaps in your portfolio given Growth in water over the last couple of years. Do you see any obvious gaps in the water portfolio that you would like to feel as you are trying to grow In Clean Water or just moving away from Water, any obvious areas in the portfolio that will benefit from bolt on acquisitions, especially given How fragmented some of your markets are still? Well, we've been fairly explicit the last few years that if you exclude Gator Systems. Our 2 big areas of investment are our water business and the Renewable Technologies in Chemtech where we see also opportunities to we'll develop some of the process Technologies. But sometimes we'll be the guys identifying the winners and making them scalable when they're not able to do that by themselves. If you take the water business, yes, there continue to be opportunities for acquisitions. The market is very fragmented. At any point in time, we're probably talking to a few companies. And these are acquisitions that range in From enterprise value, let's say, from $100,000,000 to a few $100,000,000 of enterprise value. So they're a good size for us. These are things that we know how to integrate. And Frederic will work on making our portfolio stronger. Did I cover that Frederic? Or do you have anything to add? No, absolutely. And we have a solid track record of integration of companies in the water segment. The last two acquisitions were really successful, GWC in 2018, both in California. And as I just explained, we scaled up from a U. S.-based company to the rest of the world, thanks to Solter Network. And the second acquisition is very recent, is Nordic Water based in Sweden And entering not only some geographies, but for sure new technologies like filtration and sedimentation and flood management, Which were not in our portfolio and complementary. And this Nordic Water by the name was based in Sweden, and now we are scaling up that company to mainly North America, Rest of Europe and Asia. Thank you, Frederic. And Jill, we've got the balance sheet for it. Yes. I have Sean knew how we have developed in the past. And I think really, if you look at where we stand and Compare that to our peers in the industry, I think we're in a good place. Good. Aurelio, I think you had a third question. Yes. And this, I think, is the last one. I think this is going to be more for Thorsten. I was a bit surprised when flicking through the slide deck. Why do you think their service business in Camtek is not a key area of growth going ahead? He doesn't. He knows. Yes, the service business is the Kemtech equipment is static equipment. Not rotating equipment, but you always need to make service parts. So our service part is mainly installation, supervision And replacement then support in replacement of services. So it's the replacement work, what we call a service business. And therefore, it's a low margin business. It's a low margin business, which we only need to do for the projects where we have to work With our customers, it's not a grow by itself. Yes, in fact, it's a lower margin business, I. E, it's a service business, it still has good margins, but it's a lower margin business than the components business. And as Horstin said, it's a lot of field installation, field service It is always lower margin than service that involves repairing or replacing components. So it's the service part, as I said. The replacement, so what we replace if, for example, a column after 7, 8 years, 9 years needs to be replaced, The internals, because the old internals are corroded, this is in the component business. This is not in the service business. Service business for us It's really the installation, supervision, this type of work, not the equipment. All right. I think we've got Caroline on the line. The next question comes from Carolyn Price from Fargo Management. Please go ahead. Hi, thank you for taking my question. I'm sorry if I missed it, but I was wondering about The central costs that currently are sort of charged out to the divisions and What incremental cost there may be from the spin off of Medmix? And I mean, will they continue to use Some of Solter's central functions and Solter will charge them or how does that how does the marginal Costs get affected. So Caroline, that's a very politely phrased question because I've done this enough to know that when an investor says, I may have missed it, it means why the hell was it in your presentation. We mentioned it this morning, the total sum of the functional support given to applicator systems is less than CHF 10,000,000. Franks. And it's stuff like treasury, legal, communication. A lot of these services will be internalized much way before the 2 year service period that we've established with applicator systems. And it will be done by some people transfer. We just are giving ourselves the time to do that and are supporting the mix people as they branch out into their own by continuing to support them. We don't expect stranded costs. The functional services will either be transferred from people transferred to Medmix Although, they'll be redimensioned to a size that corresponds to whatever the size of Solter is at that time. But you have to keep in mind that Solter has continued grow and we're continuing to make acquisitions. So I wouldn't necessarily assume that Solter is going to be smaller. Jill, anything you want to add? No, I think that covers all. All right. I don't know if Thank you so much. Caroline, was that okay as an answer or do you have anything else? Yes. No, I actually I only was able to join for the Solter Apart from 130, so I'm sorry. The Men Mix presentations on our website too. So don't hesitate and to also reach out to us with Do we have any other questions before we wrap up? I think that's it for today. We really thank you as a team, the people here today, this afternoon, but also our colleagues from Medmix this morning. We thank you for your attention, your interest in Solter and in Medmix. We believe both companies are really compelling investment opportunities For different reasons, they're very different businesses. Solter is a flow control leader. Solter is about Water, Solter is about industry, Solter is about biopolymers and recycling. It's about solving some of the world's big sustainability issues, anything related Fluid. And we think it's compelling because of our track record, because of the market positions that we have today And because of the demonstrated ability that we've had for 200 years to essentially develop the right technology to continue to stay relevant and at the forefront of our markets. And Medmix, Medmix is a high precision delivery device business. It serves 40% of revenues healthcare, soon to be 50%, but also some really interesting positions in consumers and industrials. And it's highly protected because it's IP based, A lot of customer stickiness and it operates in market niches that make The relationship between the supplier, MENMIX and the customer, much more codependent relationship rather than an adversarial relationship. And it's based on technology. It's an exciting business. We encourage you to consider being an investor in both. On those words, thank you again for your time and have a great day.

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