 That's the moment to see that we are online. Good. I think we are online now. Good. So good afternoon, everyone. Good afternoon to our participants and to our online audience. This is the final of the CFA Institute Research Challenge in Switzerland and Liechtenstein. And this event is organized by CFA Society Switzerland and its university relations team. I'm a member of that team. My name is Mirjana Voitel. And you will meet two of my colleagues as judges later. They are Olivier Müller and Florian Hesterer. Research Challenge is a global competition in equity research for university students. When the first research challenge was organized and that was 20 years ago in New York, only 20 universities participated. And today we have more than 1,200 universities globally participating in this competition. In the competition, students work in team and they analyze publicly traded company. Students are later judged on their ability to value stock, to write the research report, and to defend their recommendation in front of panel of judges. The subject company that was analyzed this year in Switzerland was SIG. And SIG is a leading system and solution provider for aseptic packaging. We are very grateful for the management of the company, Chief Financial Officer Frank Herzog for his active participation in the competition. And we're also grateful to his colleagues, Jennifer Gauth and Bettina Dominikoni for their support. Our competition started in October last year. We had nine universities from Switzerland and University of Liechtenstein who joined at that time with exactly 34 student teams and more than 140 students. Yesterday we had a very long semifinal round with 10 student teams representing their 10 universities and all of them did a great job. So our judges had a very difficult task to select six teams that will present in the final today. So congratulations and good luck to our finalists. University of Applied Sciences, Zed Haven, University of Liechtenstein, University of St. Kallen, University of Freiburg, University of Lausanne, and University of Della Svicela Italiana. Competition would not be possible without our judges. One welcome to experience team of judges who are known to ask very difficult questions. Catherine Hitta, Marcus Matuszek, Peter Romancina, Christoph Gretler, Peter Benziger and Florian Hesterer and Olivier Müller. Before we start with our first presentation at 14.15, I would just like to go shortly through the rules of the competition. So students had two deliverables. One was research report that was sent to us earlier. All research reports were anonymously graded by a number of graders. We have the results and the report grade counts towards 50% of the final grade. The other 50% will come from the presentations today. The first university presenting is Freiburg. Each team will have 10 minutes for the presentation and that will be followed by 10 minutes Q and A. For our online audience, I just want you to know that there will be a short break between presentations. We need this time for our judges to complete their sheets. So please stay online. We will have a bit longer break between third and fourth team and we are finishing presentations at half past five. Then we will have a longer break because I know we'll have a heated discussion and we are back at seven o'clock with award ceremony. We are honored to welcome two distinguished speakers, Dr. Nanette Heckler. She's the head of global economics and research and chief investment officer of international wealth management at Credit Suisse and a person who is very well-known to students, chief financial officer of SIG, Frank Herzog. So for online audience, again, the link for the award ceremony and announcement of winners is the same so you can just stay online. I think I have finished my introduction now. I would like to wish good luck to all participating students. The first team presenting today is University of Freedburg. Tim, would you like to upload your slides? So everyone can see the slides well? Yes, we can. We're waiting until 2.15? No, I think you can start. All right, welcome to the team of University of Freedburg. You have 10 minutes to present. After nine minutes, you get a sign. Then we switch over to Q&A. Again, 10 minutes with a nine-minute sign and then there's a hard stop. With that, wishing you good luck and the screen is yours. Thank you very much and good afternoon everyone and please welcome to our investment report presentation for SIG CombiBlog, a Swiss leading solutions provider for a septic packaging. Before we begin, let me introduce the team, Kim, Alex, David and myself. For the company, we issue a target price of 21.1 Swiss francs and a whole recommendation supported by the three main pillars of our analysis and David will take us to the first point, benefit from sustainability trend. Thank you, Philips. A septic carton is one of the most sustainable single-use packaging. It has the lowest global warming potential, which is a comprehensive measure of environmental impacts of the packaging. This is explained by, first, the logistics benefits. One might load 38% more milk in the same truck size compared to a glass bottle. The second thing is the renewable material that's composed mainly the cartons, 97% of the wood used by SIG is label FSC. And moreover, they used 62.4% of renewable energy and less than 0.5% of material and food is lost during the process. Let's look at what end consumer think. End consumer expects more healthy and sustainable packaging. There are three main characteristics of that. First of all, the material is recyclable. Secondly, no product is waste, meaning food and packaging. And lastly, it's made of renewable and material, a natural material. This is perfectly aligned with what SIG product are. Moreover, end consumer take action. 52% state that they switched for our grant because it was non-recyclable packaging and 45% because of the unnecessary packaging. Let's look at what we expect. For Europe and America, the demand is quite flat. It's the reason why we expect a gross weight that's mainly from the sustainability benefit of SIG cartons. The gross weight in Europe we expect is 2.93% and 3.86% for Americans. The difference is due to the inclusion of Latin America and this. Europe and North America are quite on the same trend, but for Latin America, the demand is less flat. However, those gross weights will not be superior to their competitors. Then I will give the stage to Philip. David? We believe that the growth will come from emerging markets, especially from AAPAC. Across many markets in AAPAC, millions of people are only now starting to consume packaged food and beverage. The rise of these new consumers, driven by disposable income and new consumption habits, represents a huge opportunity for the industry. By 2030, 65% of AAPAC's population will belong to middle class. This is an important indicator because research shows that it is precisely the members of middle class that have high willingness to purchase carton milk, especially in India. Population in these regions is expected to grow by 0.3% and 1% in China and India respectively. India's economy expanded by over 8% year-on-year basis and the Chinese economy expanded 4% in the fourth quarter of 2021. Disposable income in India has risen by almost 5% in the last three years. And similarly, China has recorded an increase of over 9% over the previous year. AAPAC leads the consumption of cow's milk with India market that consumes annually over 80,000 metric tons of liquid cow's milk. The consumption is lowered in the Chinese market because 90% of the population is lactose intolerant. Despite this, China is the second largest consumer of milk products after the US and its liquid consumption is to grow by 11% in the next decade. Since the pandemic, milk market in China has recorded a boom as the government has suggested that drinking milk is an effective method to strengthen the immune system. And as more and more milk consumers in China started to value nutrition, freshness and taste, fresh liquid milk is likely to be the future trend in China's milk market. Since the Chinese population is genetically predisposed to lactose deficiency, plant-based milk offers an alternative to cow's milk. Apart from regular cow's milk, projections show that the global plant-based milk market will be worth over $22 billion in two years and continue growing by 10.7% until 2030. In APAC, this market's sales are to increase by 44% in the next four years. Currently, plant-based milk holds 25% market share of the beverage sector in China, particularly soya milk for its higher protein value has recorded the highest growth among the rest. In our forecast due to favorable demographics, a growing middle class and a trend toward plant-based milk, we project a revenue growth in APAC of 6.3% for 2021 and 25. This growth in APAC will come from the capability to capture volumes rather than increase of margin. Further, we forecasted the highest annual growth over 6% in the number of filling machines for the APAC region. I will now leave the word to Kim, who will explain more about long-term margins. Thanks, Phillip. So with the benefit from sustainability trend and structural growth from underlying markets, our investor will question how much growth will be captured by seeds and whether a high margin will last indefinitely. First of all, sticking to the traditional market segment makes it difficult to gain the market share from industry leaders. As we mentioned before, plant-based alternative will be a promising segment. However, according to our survey, seed card tomes still struggling to find a place amid the dominance of Terrapat. Having set up the first factory in China since 2002, seed capture only a small fraction of market share of 10.5%, even behind the local competitor, not to mention industry leader. Secondly, intensive capital investment in highly competitive market could threaten seed to lower the margin. In North America, as you can see on the top right corner, operating packaging provider usually active in diverse business segment. Every day, margin on average of 15%, which is far below the current margin of six. Therefore, to gain a relevant market from competitor, margin erosion is unavoidable. Apart from that, margin pressure also arise from intensifying market where addressing consumer preference is also a key to take the lead. And sticking to the traditional liquid daily will hinder seed from seeing the market share in land-based categories, where Italian, Chinese and Norway competitors have performed successfully. Thirdly, the reason to acquisition carrying high optimism of seed management could fall below the expectation. The balance sheet is understraded to higher carrying amount of goodwill, which drastically increase the risk on equity in even impairment. More importantly, the debt is skyrocketing again, threatening the liquidity and the cash flow position in the long run. From an expensive acquisition of shown IPN, six is able to gain a handful of customer, but keep in mind that a quiet company with lower margin, divergence from their car business, profitability will be lower because cost synergies could turn to loss synergies. With a lack of leverage from Europe and APAP, intensive capital allocation and risky acquisition altogether, we project measures dilution to work 25.4% in the next five years. And now Alex will take us to violation. Yeah, thank you, Kim. So far, violation used to models. The first model being a DCF model, where we used a whack of 5.8% to discount the firm's future cash flows and they grow a long-term growth rate of almost 3.7%, leading us to a small DCF upside of 4.9%. Well, to back this value up from the DCF model, we used also multiple approach. Therefore, we compared SIG with competitors from three different industries. Waiting these three industries equally shows us that SIG is very valued with a implied price of 20.5%. Well, due to the lack of listed competitors, we just waited this multiple approach by 20% and the DCF by 80%. This leads us to a final target price of 21.1 Swiss francs and we therefore issue a whole recommendation. We want to thank you for your attention and the floor is now open for your questions. Thank you very much, dear team of Fribour. We start with the Q&A as soon as the first judge asks his or her question. I have a question with regards, just the last few slides about valuation. What do you see as an impact? Yeah, this slide here, 12. What do you see as an impact of heightened inflation, supply chain disruptions? I mean, how do you see that being factored in or being considered in this case? I'd be happy to answer this question. So I think there are two sides of inflation we need to look at. So first of all, the short-term inflation, which has an impact on the cause. And as you can see here on this slide, we only mentioned the short-term work for the long run. So to discount our thermal value, we increased the work of 0.5% due to inflation. So there is a part of the cost of debt should be higher. And also the risk rate should expect to be higher by then. And also, as you can see here on this slide, long-term growth rate, well, it's the GDP growth, whether by the regions where signal generated future revenues plus the inflation rate of 1.8% which is affected by the IMF. Okay, and what about the volatility in supply chain? We don't see any signs of broken supply chains. And for short-term volatility in COGS, I think that SIG has a quite good hedging strategy while hedging about 80% of their material costs. Okay, thanks. Oli, could you play the moderator and sort of ask? Yes, okay, next question, please. Well, no, we're raising hands, so Peter, why don't you go and then? Yes. Thank you, I start, thank you very much. So you were talking about margins and high margins of SIG and you were saying that they would come down probably due to acquisition. But if it's a highly competitive market and the SIG has higher margins than the rest, they must have a competitive advantage. Can you elaborate a little bit on this, on the margins and the competitive advantage, if any? Thank you for your questions. And I'm glad you took it. Ken, Oli, can you move to the previous slide about the margin? Yeah, here we elaborate that SIG gonna have an intensive investment in two regions, America and APACS and highly invested in emerging market which have a weaker role will highly like dampen the margins, the total margins. And as you can see in the top right corner, SIG of course have a competitive position in the margins, high margins compared to other competitors. But active in America, surrounded by competitors that have been active in diverse business segment and most of them, the average margin is just around 15% which is lower than SIG can be blocked. So we believe that this margin will not gonna last long. Can I ask you two questions? On the one hand, you looked at sort of a peer group valuation. How is, for example, Schindler a peer of SIG? How is Gaborit the peer of SIG or Asa Abloy a peer of SIG? How did you come to these names? How did you choose them? Yeah, thank you. An interesting question. So due to the lack of their companies are listed, we chose to go for the second best option. That's why we chose these three industries but I think packaging and resume business are clear. The third one we chose is Swiss industrials which are companies which are active in a very specific niche and usually have high margins and they have valuation. So that's something we also saw for SIG maybe less for the future we fear but as SIG tends to operate in the last years we focused on a sector, a carton packaging with their sleeve models. That's what we would say is quite comparable to, for instance, Schindler being active in their specific niches for Gaborit. And how do you explain, well, difficult to question to ask. They have high margins. How is that related to their business model? Have they high margins because they're just big but then they're not big because Tetra is about eight times bigger. So why do they have high margins? Do you have any explanation for that? I'm sorry, just one question back. So we're talking about Swiss industrials in general? No, about SIG, excuse me, sorry. Ah, okay. Yes, so I don't know if Kim, you might answer this question about the margins. Maybe I will elaborate on this point. We think that the business model of SIG is mainly based on the long-term customer relationship and their high margin. And because for such a long time, they just focus on their core business of daily, liquid daily segment. And with the other packages we compare with the packaging provider that has been active in multi-business segment and most of them have a low margins. So we believe that when they tend to divert from into into external business, the margins are gonna be, you know, have been highly affected. Thank you. Could you? Yeah, Florian. Sorry, could you give us your assessment of the strategic intent of the latest two acquisitions they've done both the Evergreen as well as the Shirley IP and acquisition? Do you like them or not? And why? Thank you for the questions. We as our team, we believe that these acquisitions is also strengthen their religion, strengthen their positions in key markets. But from our point of view that, and it's obvious that the market doesn't like it because it showed that it had been lose ground seeing the reason acquisition. Again, do you like it or not? I know what the market thinks. Do you like it or not? We stay in neutral because it's have been need time to prove that the system of sick and the acquired company have been comparable enough sick is able to gain, to expand their customer or how profitability and efficiency that they cannot gain from it. But so far we see that the incomparable in the system from sick and acquired company. So we more or less stay in less likely that we like it. How do you model? How do you think about, I mean, when we see like the lockdown and at home consumption have actually benefited sick in the last years? How do you model like the shift in demand, the product mix and growth as the word emerged from the pandemic? Yes, thank you for your questions. Maybe my colleagues were gonna add later. We believe that with the impact, with the negative impact of COVID pandemic, shortest of brown materials is obvious in a part because of the logistic change and increasing cost in transportation. And we had been incorporated in the cost and also we also incorporate with the weaker growth in had been weaker growth from APAC and America and also had been affected being additionally affected by the negative currency movement as well. Let me add something about this. We decided to add this in our growth rate expectation. For example, there is an opposite direction in term, for example, for APAC then, the two consumption goes really down due to the COVID and exactly the opposite for Europe. There is a lot of home consumption and therefore there is a lot of growth. So it's the reason why we put it in our expectation in term of growth. Thank you. I'm Peter Romanzino. What do you refer to on your slide when you say from cost synergies to lost synergies? Thank you for your questions. We implied that with the acquisition, with shown IPNs, with the highly expensive appreciations, they're gonna able to, they carry with high expectation that with proud human saving and the efficiency of the sick system actually is based on the technical know-how. So therefore the operation combined efficiency is less visible. And we have studied that with the employment cost also not legible because 70% of the employee has in US. So with the annual salary of the engineer, of the same year engineer of six compared with the average US engineer is quite a big difference. And we assume that with the higher employee cost who may be even far more than expectation of the management and having dampened that's causing a really good turn to loss. Time is over. Thank you very much. Thank you very much. Thank you so much. Thanks a lot. Thank you. Thank you. Thanks a lot. The next team is at 2.45. Can you see our slides on full screen? Yes, we see your slides. We have 10 minutes presentation after nine minutes you get assigned by hand. And then after 10 minutes is a break and then we move over to Q and A after nine minutes is again assigned. We are ready when you are. Hello, everyone. This is the Zurich University of Applied Sciences. Today, my colleague, Zeph, Finlay, Dennis and myself, Ilyas will share with you our investment analysis of SIG CombiBlock. After a thorough intrinsic valuation of the business we would like to introduce a bar recommendation at a price target of 27.5 Swiss francs which represents an upside of 42.1% and invite you to understand with us why you should go ahead and invest in the whole package. So today we'll go first go over the resilient market positioning of SIG. Second, we will look at the profitability and financially way of the business. Then we will examine the strategic expansion and future projections for the firm and finally we'll wrap it up for you with our investment valuation. So how does SIG make money? SIG actually operates in using a razor razor blade business model that has a pricing tactic in which aseptic packaging filling machines are sold at a loss to clients in this case and are paired with the sale of packaging sleeves to generate profits. What this means for SIG is long-term and sticky relationships with blue chip customers. In fact, the top 10 customers account for 35% of revenue as of 2020 and SIG's revenue comes from filling machines at 7%, carton packaging sleeves at 86% and service at 7%. Sustainability is also at the core of SIG's business model. The company operates to maintain their positive green footprint throughout the value chain and ESG compliance in terms of industry standards and KPI-based manager and remuneration. There are holding suppliers of raw material responsible for FSC certifications as well among other high standards. This is further confirmed with a well above average MSCI ESG fund rating score of AA. So where does SIG fit into its industry? Within the aseptic look with packaging market the company has had a stable market share of 21% since 2017. During the same time spent their biggest competitor Tetra Pak has lost a 3% market share. They show stability but more importantly it shows that SIG has a competitive advantage compared to its peers against the threat of new entrants. Further looking at some resilience of the business we compared during the COVID-19 pandemic's revenue growth from 2019 to 2020 year over year growth for SIG and its peers. We saw that SIG had a 5.5% revenue growth while its competition either had losses or very minimal gains. The shows that the business is resilient even during trying times and they can continue to bring back to its shareholders. So let's now look at how international really the business is. SIG actually has a global reach within the packaging presence in every corner of the world. Here we can see the 2020 geographic segmentation for the revenue of the company. Let's actually dive into each segment individually. First for the European Middle East and Africa region this is a mature market which is why SIG has decided to continue focusing on maintaining and gaining new large customers such as Volvo and Fusti. Outside of the European market the vision has actually been on expansion. So for instance in the Americas we can see that capital expenditure is undoubtedly a core focus of SIG. It is set to gain a competitive advantage through the new acquisition of Shoele IPN in North America this year and a segment forecasted with a 5.4% CAGAR in the aseptic packaging industry and the diversity of that exposure to additional packaging products from the acquisition. Finally, looking at Asia Pacific we can see that this year alone further specific moves have been made in this region which is the market showing a CAGAR of 5.3%. Strategic moves include the acquisition of former Chinese competitive active evergreen as well as a split governance strategy in Asia Pacific and to his North and South segments to account for varying micro and macroeconomic factors for improved efficiency. Now given the market prospects of SIG response to these opportunities we believe the business model is key to their success. Let's now look at the financial implications of their business model. To start off our analysis we attempted to compare SIG to other companies. In doing so we found that there are not many comparable companies in the aseptic packaging sector. This is due to different business models or different packaging kinds. Moreover, together with Tetra Pak SIG is practically in a duopoly. Therefore we compared SIG with two different peer groups. We found that SIG operates more efficiently than both peer groups given an average EBITDA of 25.6 over the last five years. Together with this high average margin we also observed an EBITDA CAGAR of 4% of the last five years. We project a CAGAR of 7.1% over the following six years. This projection encompasses our core and acquisition or revenue growth estimates as well as SIG's commitment to cost controlling. The cost controlling policy also extends to financial expenditure. Since its IPO in 2018 SIG has been restructuring its balance sheet. IPO proceeds were used to repay and refinance debt in excess of 1 billion euro. The debt restructuring was completed in 2020 moving from a secured to an unsecured debt structure. Net leverage decreased from 5.5 pre-IPO levels to 2.7 in 2020. SIG's bottom line tremendously benefited from this restructuring as observed in the 74% decline in interest expense over the last four periods. In analyzing their sensitivity to changes in the Euro bar we found that a 0.5 percentage points change in the six and 12 month rate would only lead to a 4% change in earnings before tax. Free cash flow is another metric positively impacted by SIG's cost controlling policy. Increased operating profits offsets higher CAPEX and lease liabilities resulting in higher free cash flow. CAPEX forms the razor in SIG's business model whereas operating profits driven by revenue constitutes the blade. We will now explain the constituents of the business model in more detail. Let's start off by looking at the razor component which comprises two parts, the expansionary capital expenditure and filler machinery. Over the past five financial periods we observed SIG's capital expenditure showing in general increasing trend with an average growth rate of 2% and increasing CAPEX to ABTR ratio confirms the expansionary trend. Filler placements are generally fulfilled under operating lease contracts meaning initial losses are sustained and therefore operating leases are deemed capital expenditure. Revenue as mentioned constitutes the blade and filler placements coincide with packaging material contracts to cover a two to three year payback period on the capital invested. Looking at SIG's revenue we observed a cargar of 2.2% from 2016, 2020 and given the preliminary 2021 revenue announcement we expect a cargar of 10.5% over the following five periods. We placed this projection on the five growth drivers with the most weight on the recent acquisitions. The modest step structure and strong casual generation has been imperative to their expansion and it allows for flexibility to swiftly leap into profitable future projects. Recent projects accredited to financial flexibility includes the plan 360 asset health monitoring which is a digital smart factory solution to improve operations for the customers. And SIG is also leading the industry as the only carton beverage producer to make it tax with 100% renewable energy like wind turbines to power production and the unwield SIG NEO which is currently the world's fastest filling machine for family size carton packs. In his expansion, the company has a strong focus on Asia Pacific. Management changes, a second production plant in China and the recent evergreen acquisitions are a few of SIG's moves to drive growth in this segment. Furthermore, in the Americas SIG is building a new plant in Mexico for the expansion of global production network to enable faster delivery and greater flexibility in this region. They also recently acquired Sholi IPN as strategic acquisition of a leading innovator of sustainable packaging systems and solutions for liquids. Based on these reasons, let's look at our investment valuation that supports a buy recommendation. Our investment valuation was based on a sophisticated discount to cash flow model. We use the capital asset pricing model and the relevered adjusted BDA approach to define the cost of equity. Together with average cost of debt, this results in a weighted average cost of capital of 5.3%. The terminal growth rate was based on the long-term real GDP growth rate weighted by six revenue by region. With these parameters, our DC evaluation results in a price target of 27.5 francs. This upside of 42.1% also reflects for current market volatility and undervaluation of recent acquisition. To obtain a more refined view of our DC evaluation, we stressed out the steady key variables for the DCF model by running a Monte Carlo simulation. The key valuation parameters were projected revenue growth, the discount rate and the terminal growth rate. By running 50,000 different simulations, we arrived at an expected value that matched our price target closely. This shows the low sensitivity of six future performance in relation to these variables. Furthermore, the simulation indicates a 63% probability of having a share price that is more than 10% above the current share price. Going forward, we have included risks and opportunities in a bull and bear scenario and evaluated the probability between the Monte Carlo simulation. According to our simulation, the probability for the bearish scenario results in 18% with a downside of 12.5%. However, with an upside of 67.9%, the bull scenario shows significantly higher upside potential than the projected downside. And with a higher probability of 29%, this illustrates the high growth potential of CIP combi block. Now, Elias, would you please conclude our recommendation? Sure, thank you, Zef. So, reflecting back on the resilient market positioning, smart innovation and expansion of the company, we would like to restate our buyer recommendation for you to invest in the whole package. Thank you for your time and we would like to open the floor for questions. Thank you, dear team, judges, over to you for question. The first question comes from Christoph. Thanks for the presentation. Appreciate your time. Just kind of what would be your view about the bear case on this? I see that you're very optimistic on the bearish end. And did you also have a downside scenario, like a gray sky scenario, of seeing stone develop? Well, the downside of the bearish scenario was 12.5% as shown in the presentation. What were the assumptions behind that? The assumption would be basically that the failure to capitalize from the expansion from the most, with the most weight on the two acquisitions, failure to gain further market share from its competitors in Europe and new technologies not appealing to the new market. Okay, and then my second question would be, did somebody look at the accounting quality of this company and what was your evaluation? So if I answer your question, I looked at the accounting history, you could say financial history of this company. In most of their ratios, they've shown an increasing trend. For example, Zef, if you could please go to appendix, let's say profitability. For example, they're the gross margins and also the even margins, the adjusted even margin down at the bottom of the slide has been relatively constant as well. And Zef, if you can please go to the yield analysis in all the liquidity, liquidity slideshow. If we look at the different parts, the revenue has been increasing, the revenue growth, the liquidity side of the business has been solid. As I mentioned in my presentation, the restructuring has decreased their total debt ratio and the debt caps ratio as well as the total debt to total assets ratio. They've showed tremendous improvement in that region. If you then go to the yield analysis, Zef, they have increased their dividends per share. Earnings per share has also increased over the last few periods. Zef also recently announced that they will this year be increasing their dividends per share from 0.42 to 0.45 per share. So across all regions we have showed, we have observed an increasing trend. Yeah, it was actually, if you stay on that page, I was more referring to things like cash conversion. And I see here now there is a big gap between reported earnings, EPS and adjusted EPS. What's the difference there specifically? The difference between EBITDA and adjusted EBITDA is non-recurring things and insignificant transactions that happen only once. An example would be an impairment or write down or a big acquisition related transaction costs. So they don't include that in their adjusted EBITDA. The same goes for net income. They remove those once off. Also non-cash derivatives will be removed from the adjusted EBITDA amount. So it's mostly non-recurring. And Zef, if you could please go to the free cash flow side. We actually did a free cash conversion ratio, which would be under, yes, that one. So there at the bottom, you can also see the increasing trend on the free cash conversion ratio. Good, thanks a lot. Thank you. Next question comes from Katerin. Yes, sorry. I was referring back to how you modeled the growth for the next year as compared to the past. And I was just wondering, and you mentioned largely driven also by the integration. I was just wondering, what makes you so comfortable that both like the Evergreen and the Shoalier IPM are actually, or are they actually able to close the marching gap to them? So maybe let's move to the M&A slide. Yeah, thank you very much. So we analyzed that, of course, and for the quality, I think these are more qualitative factors. So we saw after the press release of SIG when they announced this emerging acquisitions, the price actually dropped, which actually shows that investors are actually under an overestimate to the announcement of SIG. But we analyzed this in especially the quality factors and the left part will be then part of my colleague Filney. We see a lot of revenue enhancement, also cost savings and the access to very, very attractive markets. And also new research and R&D developments with all the synergies these two acquisitions have. We believe that the revenue will increase for the following five periods we mentioned in our presentation. Next question comes from Peter. You looked at cash, you looked at cash conversion. Did you look because this company is very capital intensive, do you look at return on invested capital? Zef, could you please go to the yield analysis slide? There you could see we did look at the return on invested capital, which has relatively been constant, which we expect for a company that has been very capital intensive and extensively expanding the capital base. So in the second section there at the bottom you can see the trend in adjusted return on capital. Again, adjusted return on capital removes the non-recurring and significant transactions. I was actually not referring to capital employed but invested capital. This is accounting numbers, you just take the balance or you just look at the balance sheet. I look at asset life, I look at really what they invest. For example, in the case of the Jolly IPN they invest the full enterprise value that would be invested capital and then I compare this to the returns. How does that look? Do you look at that? Zef, could you please go to the capital expenditure slide? Unfortunately, we didn't look specifically at invested capital, what we did do is compare gross capex to EBITDA and sales as well as depreciation. The depreciation ratio specifically is always above one which also indicates a company very extensively focused on reinvesting but we didn't look at invested capital specifically. And then maybe the second question. You said before the market was basically overestimating the negative impact but why do you think the market took it so negatively? Why and why are you more positive on these factors? Well, if we look at, if we did an extensive merchant acquisition analysis and there we can see that the market took it negatively as we believe because they overpaid slightly for both acquisitions. If we look at the PR rich in enterprise value to adjust the EBITDA, but in our extensive analysis we have seen that given the quantitative analysis we did on the synergies that my colleague Dennis explained we think and we believe that both acquisitions will be accredited to the EBITDA in future. And if we look at the history of the company we can see then in similar downturns of the market for example in COVID-19 when the market dropped they still were able to announce afterwards very positive projections which made them rebound very quickly. So we believe in the next 12 months the six share price can easily rebound from this negative reaction. Thank you. Next question is from Florian. Yes, you talked about margin expansion, right? And some of the reasons you gave for the margin expansion was the acquisitions, the cost savings and so forth. Can you give me a breakdown of the different drivers of the margin expansion? So if I can answer to that question Sir, could you please go to the profitability slide? Oh, yes, all the cash for projection, sorry. So we believe that the margin is driven mostly by revenue and our revenue as we mentioned was driven by acquisition of growth as well as core growth. So if we look at the revenue growth say it has a guidance of 4% to 6% of revenue core revenue growth at constant currency. So we assume we were on the conservative side there. We assume for 2020 Wait, wait, wait, wait, so margin. During the presentation you said they have margin expansion. What are the drivers of the margin expansion? We believe the drivers of the margin expansion as I mentioned is the revenue growth as well as cost controlling. And my colleague Dennis can expand extensively how SIG manages their cost controlling policy. But on this side, you actually have flat margins. You don't have any margin expansion, you have it. So this slide is projecting, this is the unadjusted EBITDA. This projection shows the unadjusted EBITDA. But as we mentioned before, the non-recurring and insignificant items, significant items have to be removed. That is why if you also look at the historic EBITDA, the historic EBITDA unadjusted is also flat. As soon as you adjust for these non-recurring significant items, you do see the increase, which we largely based on SIG's cost controlling policies. Okay, thank you. You project sales growth of 10.5%. Where is the difference compared to the 4% to 6% company guidance? Zef, could you please go to that cash for projection slide again? Time is over, thank you very much. Thank you very much, Alon. Zurich University of Auckland Sciences. Thank you very much. Thank you. The next team comes from University of Lausanne. Please welcome them, University of Lausanne. Please upload your presentation. Can you see my screen? Yes, we can. Perfect. There is 10 minutes presentation, the usual nine-minute sign, followed by 10 minutes, Q&A with a nine-minute sign. We are ready when you are, when the first of you speaks. Good afternoon. We're the University of Lausanne, and today we're pleased to guide you through our analysis of SIG, for which we share strong buy recommendation, with a target price of 25.9 Swiss francs and a 21% upside. In our view, SIG comes down to an efficient carton, filled with a refreshing future. And here's why. Our recommendation is built upon three material factors, which are tipping points in consumption patterns, a solidified position in a dual-polistic market, and a significant financial potential. Gabriel will first walk you through trends that drive the industry forward. We expect global asset to carton packaging markets to grow to 4.6% gigahertz over the next five years. In addition to strong demographics in emerging regions, we identify three main drivers. First, an increasing environmental awareness. Second, favorable winds in Americas. And third, a strong potential in the Chinese area market. Moreover, SIG mainly operates in the asset tick carton, which outperforms the fresh side in terms of volume and growth. Now, if we have a look at social trends, 43% of people are buying sustainable packaging, and governments support the change by implementing more regulations. That is why we performed an in-depth analysis to determine the best packaging solution. We took into account several environmental, financial, and marketing-related criteria, and concluded that cartons features best fulfill today's demand. Thus, we strongly believe that it will expand beyond traditional and markets to replace pets in the long-term. Now, looking at Americas, approximately 30% of filling machines are approaching the end of the useful life, representing a unique opportunity to acquire new clients. Furthermore, in the US, the share fee commerce in total grocery sales is set to double in five years. In parallel, we also observe a growing demand for non-dairy products with the market. Some key features of the asset tick carton, such as space optimization and eco-friendly image, makes it the best packaging solution to benefit from these two trends. Now, let's have a closer look at the Chinese addressable market, which represents 16% of SIG revenue. In China, milk consumption per capita is much lower than for any other large milk market. However, Chinese government promotes dairy products and targets to increase domestic milk production by 50% until 2025. With the market's rise, consensus expects a higher revenue growth from the two key market layers, which are six customers. Now, Michael will go through six strategies to benefit from these opportunities. SIG's geographic reach allows them to benefit from these various market trends. Indeed, the company counts three regions with both production plants and tech centers. Adding to this the future Mexican plants that will namely lower freight costs, they will have the necessary production facilities to supply every region locally. In addition, acquisitions such as Shola and Evergreen Asia represent clear opportunities to attain new highs in local markets and for cross-selling. On the one hand, joint ventures allow the company to penetrate promising regions for a septic carton packaging in a cautious and a flexible way. And on the other hand, both on acquisitions allow them to enter into new markets and extend their product portfolio. Regarding this, Shola's acquisition exhibits high prospects for three key reasons. First, it will enhance SIG's presence in the US and in India. Second, the company will then offer pouches and bagging box products. And third, these new products will bring B2B customers. Concerning Evergreen Asia's acquisition, the company will have the possibility to sell fresh products and further sales Apex growth with dairy products. These strategic acquisitions further reinforce SIG's strong position within the packaging industry. The company mainly operates in the asset-seq carton market where it benefits from a geopolitistic position sharing 86% of the market with tetrapac. This geopolity reflects both sticky customer relationships and long-term partnerships with numerous raw material suppliers that characterize this industry. However, SIG clearly differentiates itself from competition thanks to its higher focus and its greater efficiency when conducting research. As a consequence, they managed to develop a valuable portfolio of 265 active patents that notably allowed them to protect their proprietary sleep-fed technology. Furthermore, SIG offers filling machines that exhibit a 45% higher production output in comparison to tetrapac's technology. That is why SIG's market share will grow from 17% to 20% over the next five years. Now, Emilia will appreciate SIG's financial potential. Let's see the revenue forecast for the next 10 years. We have forecasted organic revenue growth for each region. Then total revenue is obtained by adding the Obaikan joint venture sales to the organic revenue. We forecast a high revenue figure of 8.5% over the next five years and it is driven by two principal effects. The first one is the volume. In fact, we strongly believe in the ability of SIG to capture market share in Americas, EMEA, and APAC regions. Second, given a high technological level, clients must rely on SIG to achieve maximum performances. In addition to this, the company's market positions allows it to adapt prices to pass on costs to the customers. We now move from the revenue production to the APD emerging bridge where we believe SIG has an excellent ability to drive their margins up. The first driver is the hedging policy that allows them to develop price response to fluctuation in raw material costs. Second factor, the company's freight costs will decrease thanks to their new plans in Mexico and China. In fact, SIG is a packed-to-pack efficiency leader since it is above packaging peers in terms of both gross margins and ABG margins. The latter will even reach an exceptional 27.6% by 2026. As we have seen, freight costs will decrease from 2022 and it will drive Americas margins up to attend the level of other regions. Finally, SIG will be able to generate high free cash for margins thanks to their strong operating profitability. Moreover, the company paid historically higher dividend yield than packaging peers and we expect it to continue over the years. Hugo will now discuss the company's attractive ESG credentials. Based on several standards, we computed a 4.1 out of five ESG score for SIG which clearly shows superior sustainability credentials compared to PIS. To reward the superior performance, we applied 10 basis points discounts to our work. Two powerful arguments stand out to back our recommendation. First, SIG reveals solid governance prospects. By taking a closer look at the ownership structure, we noticed that SIG is one of the major heffielders for SIG. Given entitled for SLO, we strongly believe that this 10% stake is highly supportive of the current dual-polistic market structure. Moreover, the management of both EME&APAC was recently split to better address local challenges and integrate acquisitions ideally. Finally, the company materializes sustainability mission by linking 5% of short-term incentives to their EcoVadis performance score. Our second argument underlines SIG's environmental responsibility. We have already pointed out that carton is the best solution to face environmental matters. SIG goes beyond the status quo by achieving industrial emissions while maintaining prices at reasonable levels. For instance, the company's most sustainable solutions achieves up to 60% reduction in CO2 emissions while only picking up cost to the producer by 2%. Jeremy will now appreciate our valuation results. To perform our valuation, we used two different methods, a DCF model and a multiple approach. We assigned a 70% rate for the DCF and the remainder to the multiple. As a result, we obtained a 12-month target price of 25.93 strength, corresponding to an upside of 21%. For the DCF model, we computed a WAC derived from a 5.1% cost of debt and a 6.5% cost of equity. Adding to this our ERG discount, we ended up with a WAC of 5.8%. Ultimately, this approach implies the target price of 26.6% strength. The sensitivity analysis confirms that our recommendation is focused to significant changes in both cost of capital and long-term growth rate. To complete our DCF valuation, we assessed two different scenarios based on the risk and opportunities. In the blue sky scenario, we expect SIG to adapt perfectly to the fast-changing environment leading to a stock price of 33.83 strength. In the worst case, the stock price will decrease by 16%. For the relative valuation, we decided to use a trading enterprise value over EBITDA because SIG operates in a capital-intensive industry. We assessed the PIRs based on several criteria and we ended up with a list of A companies. We allocated a larger weight to the four packaging PIRs compared to the four three-slash-cap companies. Currently, we observe that SIG traded unjustified 11% discount compared to its PIRs. So overall, with tipping point in consumption pattern, a solidified position in the geopolitistic market and significant financial potential, we are issuing a buy recommendation and we invite you to invest in SIG for a refreshing future. Thank you, and the floor is now open for question. Thank you, dear team of Lawson. The question Q and A starts when the first judge asked his or her question. Judges, please go ahead. The first question comes from Christoph Kreitloch. Thank you, Olivier, and good afternoon, team Lawson. Thanks for the presentation. Just two questions. One, if you go back to page 14, I think, you're basically making the case of margin expansion. Yet if I look at the past historic performance, I think margin only had one way to go down over the last four, three, four years now. So maybe, kind of, could you elaborate again how this should be achieved? Yes, I can take this one. So the slight decrease in the margin until 2022 is mainly driven by the raw materials cost that are increasing due to the inflation, the recent inflation. But we expect SIG to pass on this cost thanks to their strong pricing power, as we said, and to recover their margins. OK, and then the second question is with respect to your market share gain scenario. I mean, they are up against a tough, large competitor. How do you really gain market share against such a big animal who has no mature, no size advantages? We believe that SIG has this flexible technology and has these ESG credentials that help them to be competitive in comparison to Tetra Pak, even though Tetra Pak is a big actor and is a major competitor. We've seen that they have a higher technology, technological hedge with the filling machines that produce higher packaging on average. Exactly, yeah. So yeah, we believe in the ability of SIG to gain market share to Tetra Pak, for example, thanks to their technology and also their ESG credentials. OK, thank you. I appreciate your answers. Next question comes from Florian Ester. Florian, please ask your question. Yes, thanks. So a follow-up on the margin discussion. How did you evaluate the margin impact of the recent acquisitions? We didn't incorporate the recent acquisitions into our valuation for the moment, but if we had to do so, we would certainly incorporate a transition phase for the first one or two years in order to incorporate these smaller margins for the two companies that are Shole and Avogunasia, which are around 18% and 19% of EBITDA margin, I'm talking about. And then in an horizon of three to four years, yeah, we would reach again, sorry, an EBITDA margin that would be close to our current forecast of 26% approximately. OK. And still on the acquisitions, right? Do you think these acquisitions were good, reasonable acquisitions? Or do you think this was a strategic misstep for the company? And why? Oh, I'll take this one. We think the two acquisitions are really smart decisions for the company, since they will both be able to extend their reach geographically and with their type of customers, since Shola actually provides different volumes compared to SIG and there are several opportunities for cross selling and for example, for the geographic expansion, India seems to be a very promising region to penetrate and SIG lacks some presence there. So Shola can only be beneficial for the company. Thank you. Next question comes from Peter Romanzina. Innovation seems to be key A for Martin's B for market shares. How do you see that, where do you see that SIG is really more innovative than the market leader? SIG has a lot of industry first in terms of sustainable innovation, so they produced paper straws, the first aluminum free packaging. And that is why we really believe in the ability of SIG to continually produce these kind of sustainable innovations that drive their industry towards a more sustainable business model and that is why we believe that SIG is in a good position to continue in this way. Second question is, you talk about expanding margins. However, I saw in one of your slides that the cash flow margin is significantly down. Is that correct? And why? Yeah, you can go to the slide on the 15, yeah, 15. Actually, the free cash flow margin is a bit decreasing, but not that much, as you can see. That's 20% almost, huh? From 10.3 to 8.5, that's almost 20%. I call this very significant. Let me count your salary by 20%. Yeah, so you must know that the revenue growth will be much higher in the next five years because of the acquisition. So that is one of the main driver why the free cash flow margin is decreasing, because the revenue is increasing more faster than the free cash flow. For the negative in terms of margins, they are coming down. But didn't you say earlier you didn't include the acquisitions in your margin forecast? Yeah, but I'm talking about the OBEI can ventures. If I can add something, this mainly comes from the high CAPEX of SIG. The CAPEX is increasing because of the new plants in Mexico, for example. So they have to continuously increase the CAPEX to keep their growth in revenue going. But CAPEX is normally capitalized. So the CAPEX entering the computation of the free cash flow. Good. The next question comes from Katrin Hieta. Yeah, so I was wondering if you could explain us a little bit how the rise of alternative milk and plant-based beverage in developed markets rather than SIGs offering. Sorry, I think I didn't hear you quite well. I would be interested how you look at the rise of alternative milk, the whole plant-based development products in terms of forsaken SIG, how is SIG positioned, maybe, as opposed to Tetra in this space? Yes, perfect question. So as mentioned in the slide, it's number six. Non-dairy substitutes are actually going to expect it to increase in the short term. And SIG is perfectly positioned to respond to this demand since they promote a Nico-friendly image through their sustainable packaging, which is quite linked to healthy products such as non-dairy substitutes. And if I may ask another question quickly, could you give us a bit a split of geographical margins? And you mentioned that the EM growth is one of the drivers for you. So I would like to see just to get a feel of how that impacts margin mix. So if I may add something to this question, we forecasted America's margins to increase because fried costs will decrease since the new plants will be operating in 2023. The reason for a lower margin in the Americas is because the supplies of sleeves actually come from APAC and Europe. So deleting, suppressing those costs, getting rid of them, will actually help SIG to increase their margins, meaning margins in America's will cut the gap with other regions. Thank you. And I have the next question. Dear team, how do you assess the pricing power of SIG also with respect to raw material costs? Can they pass on the higher raw material costs to the consumer or the client? Yes, so actually they can't pass. We expect SIG to pass on the cost at a level of 80% to the customers. So thanks to that pricing power. And yeah, if I may add something, regarding the pricing power, we believe that the shareholder structure of SIG, which counts TETROPAC as its main shareholder, supports the duopoly argument that we are showing, that we believe in. And that is why we believe there is a strong pricing power because TETROPAC will not implement the pricing work as they will more collaborate and adopt the same price responses as SIG in order to react to market changes. Next question comes from Marcos. Yeah, I would like to go to the capital intensity of the business. You know, the fact that you are also forecasting lower cash, cash flow margins. But on the same slide, you're also basically saying, don't expect any sort of impact on dividend or dividend yield. It's another slide. To what extent are you anticipating or assuming, putting some sort of a risk factor? Time is over. Sorry. Thank you very much, dear team of Lausanne. Dear judges, the audience, we have now a 15-minute break. The next team that comes is at 4 o'clock PM, University of Liechtenstein. See you in 20 minutes. Thank you very much. Thank you very much. Thank you. Welcome back, everybody. The first team after the break is University of Liechtenstein. Welcome, dear University of Liechtenstein. Can you please upload your presentation? Can everyone see it? Yes, we can. Right. The Eliftenstein team, there is a 10-minute presentation. After nine minutes, you get the nine-minute sign. Then there's a hard stop. Then it's a Q-day. Again, it's a nine-minute sign shortly before we come. With that, the floor is yours. We are ready when you are. Thank you. Good afternoon, and thanks for joining us today for our investment pitch on SIG CompuBlock. We are team Unili, representing the University of Liechtenstein. We support the sale recommendation of SIG with a target price of 17 francs, 22, based on the following assessments. Firstly, we have discovered indications of greenwashing. Then there are the stagnating short-term growth perspective, the sales lower than the market's expectations, and finally, the tremendous overvaluation of SIG compared to its competitors. We see a misalignment between SIG's compensation structure and its sales perception and demeanor as a sustainability leader. SIG has implemented a sustainability KPI in the short-term incentive plan for its executive board. However, the weight is only 5%, and the KPI, measuring the sustainability success, is a score called EcoVataScore. This score is generally unknown, and SIG has already achieved the highest possible score there. To us, this signals a lack of incentive. It also strongly contradicts the external communication of six executives who claim the large influence of sustainability performance on their remuneration. Another sign of greenwashing for us is the divergence of recycling rates reported by the industry and those determined under European standards. On the left-hand side, you can see the difference for some European countries with the real rates being significantly lower than the reported ones. We are convinced that these rates are even lower for some of six other target markets. The low recycling rates resulting from the underdeveloped recycling infrastructure and the multi-composite structure of beverage cartons raise doubts on the sustainability of six products. In our assessment, the growing consumer awareness regarding sustainability issues can lead to a consumer shift towards other forms of packaging such as glass bottles. We see signs of greenwashing in SIG's business which could damage the reputation of the firm as an ESG darling and could seriously harm its business. I will now hand over to Fabian, who will elaborate on SIG's difficult market position. Thanks, Amino. When it comes to SIG's overall market growth, we can observe in the illustrated world map that the American and European regions are currently stagnating due to declining demand for milk products and shifting to a healthier lifestyle and market saturation. Lastly mentioned can also be observed in Africa where people slowly move away from sugary drinks to more nutritious beverages. Furthermore, improving refrigeration systems leads to the declining demand for stable shelf milk, negatively affecting these areas regional growth rates. Contrously, the APEC region show a rapid growth rate which makes the APEC region an essential revenue growth factor. However, as observable in the bar chart below, SIG's market shares are limited compared to its main competitor Tetrapuck. Furthermore, we found sufficient evidence in the APEC region that the aseptic packaging market is strongly contested. Significantly, China is seen as a crucial tipping point for SIG's future because of the potential imitators which currently try to promote their cheaper sleeves to SIG's customers. When it comes to the Chinese market, we also consider the regulatory issues which could limit SIG's market access and pricing power within the Chinese market. As we examined, all those factors would put down pressure on SIG's revenue. Additionally, we identified the whole aseptic packaging market as an overall growing market. However, this growth mainly drives from the increasing demand for wiles and bags as observable in the figure. Nevertheless, we estimate the aseptic carton packaging segment with a small constant growth rate. Further, we evaluated glass and plastic containers as possible substitutions for carton packages. With this in mind, we estimated an overall revenue down pressure for the SIG. Now to the financials with Chris. Thank you, Fabian. Since its IPO, SIG has recorded substantially low growth rates. In order to benefit from high growth rates in certain geographical areas, the company acquired the joint venture in the Middle East and ever green Asia and China. The acquisition of Scholler IPN is intended to further increase the portfolio in the field of sustainable packaging. Unfortunately, the future growth rates could be lower than expected. The effects of acquisitions to boost sales growth are temporary and the current high inflation rates are expected to decline in the future. Another threat is the shifting demand to healthier products which translates into lower consumption of milk and shoes and thus lower demand for aseptic packaging. Pricing power through the sale of sustainable packaging may also be limited. As the packaging is less sustainable than expected and the innovation power of the competition is quite high. One of SIG's biggest problems is that it is unable to fully pass on an increase in input factor costs to its customers. By raising prices, customers are induced to switch to cheaper suppliers. In the event of a technical price reduction to gain further market share, the market leader, Titor Pack, can simply intervene and offer packaging at even lower prices through economies of scale. The lower sales expectations and the currently high input factor costs thus put downward pressure on the margins. The high DNA costs stem mostly from the acquisition of SIGs through ONUX and from the asset intensive operations. The planned acquisitions in 2022 will further increase the DNA costs and decrease the profitability. To sum it up, give them an increase and expect a sales growth through acquisitions and a low pricing power combined with high cost of books sold and an inflationary environment. We expect an EPS in fiscal year 2026 of 0.57 Swiss francs, whereas the analysts consensus is 1.04 Swiss francs. We believe that the EPS consensus is too optimistic given that the acquisitions also need to be financed. And now I will hand over to Moritz. Thank you, Chris. We issue a sale recommendation for SIG with a target price based on a multi-stage discounted cash flow analysis. This model is in line with SIG's international corporate profile and allows us to accommodate for future solid growth. With an estimated cost of capital of 6.9% and a terminal growth rate of 2.2%, we arrive at a price target of 16 francs 50, which corresponds to a downside risk of 21%. On a negative note, we do see a potential downside for terminal growth based on the mentioned arguments. This will result in further price losses far beyond our target price as seen in the sensitivity analysis. The illustration on the right side with key valuation ratios highlights the overvalue of SIG to its peers and hence support our sale recommendation. To further supplement our DCF, we conducted a relative valuation. We compared SIG to two different peers, APEC, Enemia, packaging manufacturers and food packaging companies. We applied a small premium of 10% to SIG's enterprise value to EBITDA multiple to reflect SIG's superior external ESG rating compared to its peers, reaching a 2020 to enterprise value to EBITDA multiple of 13. This implies a price of 18 francs, a 13% downside which confirms our sale recommendation. We expect the repricing of SIG as we leave it should trade closer to its peers, especially with the market entry in China. With the previously mentioned arguments, we underline our sale recommendation with a downside risk of over 17% and a price target of 17 francs, 22%. Thank you for your attention and your time and we are now at your disposal for any question. Thank you, Liechtenstein. For me, the slide 12 went a little bit too fast. Can you please comment on your analysis, football field here? Yes, sure. So on the football field, you can see the price range of the last year of SIG and then we did our DCF and both multiple approach with enterprise value to EBITDA and enterprise value to EBIT to show you that with all three different kinds of valuation, we still see SIG as a sell company. Next question comes from Peter Romanzina. Can you tell me a little bit about the business model? How does the company make money? How do they operate? I will answer this question. Thanks for opening the slide. So SIG offers, it has mainly three offerings for its customers. As you can see on the left-hand side of the slide, it sells filling lines to its customers, then the corresponding sleeves and closures and also the matching technical service. And as you can see on the pie chart within this graph, the main part of its revenue stems from the sleeves and closures and they match the filling lines. So it's a razor blade model. What is the impact on a razor blade model? Why is this attractive or not attractive? What's the impact? And just one sort of, I might be a bit picky, but you said they are selling filling lines. Is that so? Who owns the filling lines? Because if you say they sell them, it would be the customer who owns them. Is that true? No, they are owned by SIG. So they don't sell them? Yes. What's the impact of this? Regarding the sleeves for a manufacturer, the customers are used to use the sleeves from SIG, ComiBlock, but we found sufficient evidence in the Asian market that there are competitors who try to produce alternative sleeves, which also function with the SIG filling machines and that would probably destroy either the revenue streams for SIG or at least reduce their margins within those regions because they're much cheaper than SIG. But if they own the machines, can't they defend themselves? They can try to defend themselves with lock-in effects, but we see it as very crucial and also, if you show it in the history, the Chinese market is also very good at imitating and replicating those technologies within, or to producing at the lower cost rate. Thank you very much. The next question comes from Markus Matusek. Can we go to the valuation slide, please? Yeah. Can you tell me a little bit about how you derived at the cost of debt, how you derived at WACC because it seems to be, I just would like to understand it better. Let's put it like that. Yes. For the cost of debt, we used for bond majorities to find out the cost of debt for SIG and to derive at the WACC, we used the cost of equity, cost of debt with a beta of 0.9 and the risk-free rate of negative 0.53. As we used all numbers in euros, we used the government bond for the risk-free rate to derive at the WACC of 6.9%. The next question comes from Katrin. Yes, Sam, you mentioned the substitution risk from plastic packaging. Just wondering the last year, we have rather seen like the shift the other way around. What makes you think that plastic is back? I could take that regarding the plastic, it's probably most of isn't that cost. It's much cheaper to produce or use plastic containers and therefore some customers are willing to try an extra price for being environmentally friendly. But let's put it to it in the business terms, often the cost factor is quite crucial in order to excite mind in order to be price efficient. Therefore, we see glass and plastic as potential substitutions for carton packages, at least in the short run. And another question just quickly on the peer evaluation, what made you take into account or what made you like considering the players as Nestle, like the consumer players? Yeah, so as we see, SIG will grow in the European market in the same terms as Nestle and they are known as since they are customer of SIG, so they will sell, for example, the tomato packages which are produced in or filled in aseptic carton packages. We see there is what a growth rate is pretty similar and therefore we use these kind of companies as it peers and Tetra Pack is a privately head company. So we couldn't use it as them peers. The next question comes from Florian. Thank you. Could you show me your margin and CapEx development which you use to build your DCF? Yes, can you go to the, yes. So as a growth rate, we think- No, no, no, EBIT margin, so you have some EBIT margin expansion in here. So what are the key drivers of the EBIT margin expansion you're seeing here? We're seeing. I mean, what defines the EBIT margin is after all the cost of goods sold. I mean, what SIG was trying to do is they implemented, I mean, they introduced like- The gross margin is stale. Your gross margin is stable, so it's not in the cost of goods sold, the changes, right? Yeah, then if you will talk about EBIT margin, then of course the amortization and depreciation costs which are substantial because it is, the business model is quite asset-intensive. So what you're saying is amortization and depreciation is going down as a percentage of sales? It's, in normal terms, it's not going down because there were some takeover, like in the Middle East, they acquired like the remaining 50% of the joint venture they had. Then they also will acquire in the middle of 2022, Scholle IPM, the American company and also Evergreen. So this will have an impact in the future also on the EBIT margin. Sorry, thank you very much, University of Liechtenstein. Thanks a lot, bye. Thank you, Emma. Thank you. Thank you. Bye. Judges, please switch off video, put on mute, and the next team is then in 10 minutes time. So the next team is Università della Svizzera Italiana. Welcome, dear team. You may upload your presentation. Good afternoon, everybody, and thank you for being here. We are the capital from University of Lugano, and this is our equity research presentation for SAG CombiBlock. This public company focused on aseptic packaging solutions. Our recommendation as a team is a buy. Indeed, our combined valuation suggests that the stock price is undervalued to the market price of 26 against 29s with Frank's target. We would like to highlight the key drivers of different success. The dark first of all is sustained revenue growth spurred by investments in innovation and the sponsor acquisitions. Then a competitive advantage ensured by ESG positioning, strong financials, and the solid offset potential. The business is segmented in free main product lines, packaging for liquidary, non-carbonated stock drinks, and food. And free are also the main and market service by the company, EMEA, HAPAC, and Americas. One key trait characterizing the firm is for sure flexibility. Indeed, thanks to its unique, reliable, sleep-based technology, the firm is able to accommodate the changing customers' needs in terms of volume, format, and design. Then, based on sustainability, the key driver behind product development, the company managed to beat the portfolio effects that are all recyclable. We expect strong growth in the aseptic packaging industry, mainly driven by a shift in demand towards more sustainable products, low profits, new entrants, and reduced costs. Now Ludovica will go back to the key success drivers, analyzing further revenues. Thank you, Silvia. After the IPO in late 2018, SAG revenues started growing at a higher rate, but always below its peers. In 2020, SAG did not suffer a lot from COVID-19 outbreak as consumption at home draw revenue growth. We forecast that in 2021, revenues will grow by 13%, mainly thanks to an increasing consumption of packaged products, growing demand for sustainable packaging, as well as rising inflation. EMEA is the largest market in terms of revenue generation, followed by APAC and Emeritus, where the company is expected to increase its presence through knock-out issues. More than 80% of SAG's revenues come from sales of sleeves and closures followed by filling lines and service revenues that are expected to grow at a higher category in the forecasted period. In 2020, SAG managed to boost its revenues through innovation, both in terms of new sustainable products and a new field in technology. Regarding expansion, the company announced the opening of new production plans, located near already existing ones. This is done in order to generate reciprocal synergies. Moreover, SAG announced the acquisition of the Obeiken individual list and the integration of Lisey cartons in Australia. Now, Armando is going to talk more about sustainability. Thank you, Ludovica. Being in the aseptic packaging industry, SAG is by default contributing to a more sustainable future. In fact, in the last two years, SAG has managed to increase its core from 67% to 75% and by that surpassing some of its major peers. Having a grade of B plus is mainly due to the lower performance of social pillar. The social pillar was mainly affected by COVID-19. However, with the global economic recovery, SAG will be able to continue with its talent development initiatives and thereby increase its core steadily. We also believe that there are certain key improvement areas within the ESG proposition. However, knowing the SAG's initiatives, they will be able to attract the attention of many conscious investors. Regarding the corporate governments, we may have noticed that there have been certain shifts within the management and CEO position. The most recent one and the most relevant one is the separation of one functional unit into two functional units and the appointment of two new general managers on the north and the south part of the APAC region, which has been done to fully scale the business operations within each part of the region. From a general perspective, SAG has an effective corporate governance and effective internal control system. Management has performed 87% and that is mainly due to the lack of policies for board independence and board diversity. However, in practice, we see that SAG has been taking initiatives to increase its core steadily. Now, Dario will give you more insights about financial analysis. Thank you. Forecast and increasing EBDA. The main drivers of this growth will be higher revenues as well as a higher cost efficiency given by further investments in new factories that will ensure economy so scale as well as a shorter distribution channel that will lower the distribution costs. As a result, SAG will keep its EBDA margin well above peers for the forecasted period. SAG generates a cash flow from its operating activities more than capable of covering its short-term obligations as well as its high dividend expectations. A clear sign of its operating efficiency is its very short cash conversion cycle that will forecast to be there also in the future. Regarding the investment side, cash flow from investing activities will be steadily negative. However, this is aligned with SAG's innovative nature and SAG will be capable of generating a return on invested capital well above its cost of capital. So, the main drivers of the free cash flow growth will be higher revenues, resilient margins as well as a progressive stabilization of the increase in capex and networking capital as soon as the business becomes more mature and SAG will consolidate its already significant market share. Passing to the financing side, this is mainly characterized by debt. However, we argue that debt is sustainable. It will decrease in size thanks to the strong cash generation that will allow some bootstrapping and also the cost of debt will decrease thanks to debt renegotiation that already took place. In our analysis, we also took into consideration the risks. The main one are the competition risk since the new way towards sustainability would attract new competitors. Management risk has reached recent shifts in executive positions may lead to a period of uncertainty in the way SAG is managed. And finally, currency risk since SAG auto-operating internationally mostly rely on natural energy. Now, Lorena, we give us more insights on how our analysis fits in our evaluation. Thank you, Dario. So, our investment, we are now ready to put our investment thesis into valuation. Our valuation is based on a discounted cash flow which weights 70% and the multiple valuation which weights 30%. Overall, we obtain a 12% upside from the closing price. Our DCF is based on a weighted average cost of capital of 4.9% and a free cash flow terminal growth rate equal to 2.1%. Overall, we obtain a target price of 31 Swiss francs which gives us a 19% upside from the closing price. Our sensitivity analysis shows that our target price is not so sensitive neither to changes in the weighted average cost of capital nor to changes in the growth rate. Indeed, we see that only in nine cases out of 49 our recommendation would be changed to a cell one. But what are the risks of such a change? Well, the main risks are the adjustment of competitors to the new sustainability standards that SAG is now leading, the persistence or the worsening of the COVID-19 pandemic situation and the increasing costs. This situation would cause the price of SAG to plummet to 19 Swiss francs. On the other side, in case of a full recovery from the COVID-19 pandemic and a successful acquisition strategy abroad, the company could see its price skyrocket to 43 Swiss francs. Our relative valuation is based on a multiple valuation in which we use an enterprise value over a BDA multiple and consider companies both from the containers and packaging and the industrial machinery industries since we believe SAG to be operating in both of them. Overall, we obtain a target price of 25 Swiss francs through our relative valuation. So to summarize, we should buy recommendation on SAG CombiBlock based on our two valuation methods, both the relative valuation and the intrinsic valuation, also considering the high revenue growth with forecast for SAG, its competitive positioning and its commitment to sustainability, together also with its strong financials and upside potential. Indeed, we obtain a 12% upside from the closing price leading us to a target price of 29 Swiss francs. We thank you for your attention and we are now ready to answer all your questions. Thank you, dear team from Università della Svizzera Italiana. We are now opening the Q&A session. The first question comes from Peter Romanzina. First one, just very briefly. What's the source of your ESG ratings? They're not your own, are they? Thank you for your question. No, the ESG ratings are given from source refinitive and we've taken them into consideration into our growth estimation. The second one is you say they have strong financial, define strong financial, what makes the financial strong? I consider them not particularly strong. Why are they strong? Thank you for your question. For instance, we do believe that ESG's financials are strong, also considering that financials with their peers. For instance, another interesting feature that we found is that the free cash flow conversion, although being like below one, it's well above peers both in like a past point of view, but also in our forecast. Indeed, ESG shows free cash flow conversion of 0.6 to 0.7. On the other hand, peers like Amcor and Petra, and Petra Pak of just of 0.3 to 0.4. That's why we consider ESG like a very strong internal financials. Thank you very much. Next question comes from Christoph Gretler. Thank you, Olivier. Yes, I have one question. Could you show me how you get to these 4.9% back? It's fairly low. Sure. So we'll go to slide 34. Okay, so we have levered beta that we have levered through our regression, which is equal to 0.91. Then we have a market risk premium of 6% and a risk free rate of 0.1%. And we compute the cost of equity through CAPEM, which is equal to 5.56%. Then we use the corporate tax rate of the previous year, which is equal to 25.27. And the pre-tax cost of debt, which is 2.07%, which is taken by using the interest expense and using also the all the interest-bearing liabilities. Overall, then we obtain an after-tax weighted average cost of capital of 4.94%. Okay, yes. Thank you. Next question comes from Katrin. So I would be interested how do you split or model like the margins in terms of like price and volume evolution? Thank you for your question. We believe that revenues will mainly increase in the future due to volume. This thesis is further supported by the fact that the company is making further acquisition. So it is extending their plans, in particular in Asia, so in emerging countries. And we also consider that it would not be in the best interest of SAG to start a price war, especially with the competitor, et cetera. Therefore, we believe that revenues in the future will increase and mainly thanks to volume. And just quickly adding to that, we can see that in Europe, actually, that the card and market consumption is rather like federating. How do you model that part geographically? Yeah. Okay, can you give me that? So I think that in our forecast, we took the Europe share of their overall revenues as like a stable one and compared to the other two shares. So in the EMEA and APAC region, that on the other end are going to increase. But thanks to the strong technology and flexibility of SAG, we do believe that the company will be able to consolidate its positions also in Europe. The next question comes from Florian Esterel. I have two quick questions. So I mean, you do are projecting some fairly reasonable revenue growth, but what is the rationale then for your CAPEX to come down over the next several years? Well, yeah. So the revenues will increase as well as the CAPEX according to our forecast in 2022 and 2023, given the heavy investments that SAG is doing also in terms of new acquisitions. And so we believe that in the next couple of years, three years, the CAPEX will increase. Then as soon as- Sorry, but if you compare that CAPEX in the longer term horizon, right? I mean, you have it in your appendix. If you look at the CAPEX of 18, 19, 20, where we had about 300 million, right? These levels are significantly below. Well, our model considers that CAPEX will increase in absolute term. But if we consider the percentage growth of CAPEX, if the growth rate will stabilize during the time of our forecast. The next question comes from Christoph Gretler. Yes. Thank you, Oli. It looks like a lot of your investment case hinges on market share gains and then operating leverage. And you mentioned that this was due to them having better sustainability or following better sustainability standards. Did you cross-check that with the competitor, no Tetra and what are the measures that Tetra takes to defend its market share? I guess no, they have no quite some size advantage. So they should be able to defend themselves. Was there any, did you believe management or did you have any specific survey work or kind of conversation with industry people or how did you come to that conclusion? Thank you for your question. So Lorena, could you please go to slide four? Actually, we have analyzed its competitors and as you said, the largest one is for short checker pack. But considering this, we see that Tetra pack is only the largest one between the peers that SAG has. Indeed, the others are only in this 21% that we have reported and are all smaller competitors. So for what regards Tetra pack and SAG, the main difference lies in the systems that they're using as their technology. Indeed, Tetra pack relies on a role-based system, whereas SAG relies on a sleep-based system. And this creates some advantages for the company in that their packs are just lighter and more compact and this also gets some cost advantages. And also we have analyzed that probably SAG is also better positioned in a matter of ESG. So we believe that it is better positioned as a result from a cost perspective and also a sustainability perspective. Thank you. Thank you. Time is over. Thank you very much. Università della Svizzera Italiana. Thank you very much. Thanks a lot. Thank you very much. Thanks a lot. Thank you. Thanks. Everybody, the next university is the University of Saqqalan. Welcome, dear team. You have 10 minutes to present. After nine minutes, there is a sign followed by 10 minutes, Q-Day, again, with a nine minutes sign. We are, may you may upload your presentation. Perfect. Thank you. And we, you may start whenever you want. Welcome, everyone. HSG Equity Research is happy to share our take on the SIG Combi Block Stock with you today. Our team consists of Dömer, Sven, Maximilian and Mio Hannes. To give you an overview on what SIG actually does, the company offers machines and cartons to package beverages and food items. Its customers come from the resilient food industry, while at the same time, SIG is well positioned in dynamic growth markets, namely APEC and the MIA region. After this overview, let's dive right into our investment summary. We issue a buy recommendation with a target price of 26.3 Swiss francs based on three main drivers. First, SIG has a resilient business model paired with best-in-class margins. Second, SIG will greatly capitalize on growth markets. And third, SIG is the sustainability leader in an already sustainability-driven industry. Looking into our first thesis, it is crucial to understand the economics of SIG's razor razor blade business model. Whenever SIG sells a new filler, the customer also enters a contract to procure cartons from the company, thus creating login effects and revenues for the years to come. This stickiness is reflected in a 90-plus percent share of recurring revenue and the customer retention rate of 99%. The second driver of SIG's performance is its superior sleeve system that differentiates SIG from its biggest competitor, Tetra Pak. Without going into the technical details, the system, among others, leads to enhanced acid utilization and creates less food waste. This benefit of the superior technology leads to a strong value proposition and pricing power for SIG, and this pricing power results in an EBITDA margin of 27% more than 10 percentage points above industry standard. And with that understanding of the business model, let's look into the APEC and MIA markets. In these regions, a growing middle class lead to an increasing demand for processed food, which results in the need for packaging. One example of this development is China, where milk consumption is expected to triple by the end of the decade. SIG has taken the right steps to benefit from the growth in these two regions. It has acquired a full stake in its MIA joint venture, allowing the company to expand into new countries within the region. In APEC, SIG acquired Evergreen, a regional competitor, and built a new manufacturing plant in China, adding 20% of its global sales and additional production capacity. This enables the company to capitalize on China's increasing thirst for milk. Moving on to sustainability as a growth driver. Consumers want sustainable packaging and they're willing to pay for green solutions. We see this both and developed as well as emerging markets as highlighted here on the graph to your left side. Now the question is within packaging, which categories will profit from the sustainability shift? We see that carton packaging compares very well to other alternative single use packaging options, establishing itself as the leader in our assessment. Therefore, we believe that the share of carton will grow in the future. Now, how is SIG positioned to take advantage of this shift? The company recognized the importance of sustainability early on and already released the world's first aluminum-free carton in 2010. Competitors are now trying to catch up but are still lagging behind. Edelpuk has only just announced their first aluminum-free solution in 2021 and Tetra Pak is still in the trial phase for theirs. Having had a look at SIG's business model as well as its strategy, we now want to see how this translates into SIG's financials. Starting off with the top line. We identify two types of revenue drivers. As mentioned before, we have marked specific drivers such as the growing world, especially in APEC and MIA, as well as the increasing relevance of the septic carton packaging. On the other hand, we have companies specific drivers, mainly SIG's organic and inorganic growth strategies, but also it's very sustainable product portfolio which allows the company to grow even in saturated markets. All in all, this leads to a revenue cager of 10.5% until 2027. As we can see, the main growth markets will be APEC and MIA on a likely black basis but especially strengthened due to the targeted acquisitions in those areas. Then from revenues to cost margins, we identified three key margin drivers. Firstly, SIG's razor razor plate model enables the company to have low sales costs after they install the pillars but also to pass on raw material price changes to its customers. Secondly and thirdly, we have SIG's sleet system as well as its portfolio of sustainable products which means that SIG has a superior product portfolio compared to competitors and is thus able to charge premium prices. More over its volume of products enables the company to leverage economies of scale. All in all, this results in a superior everyday margin of 27.4% which we expect to stay constant in the future. This can be justified when having a look at SIG's cost base. As we can see, costs of goods sold are mainly made up of raw materials. However, and despite the high volatility of commodity markets, we see that SIG managed to keep its margins constant. Now, going into capex, we expect capex investments to further rise in the future. This is inherent as filler investments are necessary to drive the growth. Filler investments are cashflow negative at first but then break even after two to three years. Lastly, when I have a look at working capital, we see SIG having a history of negative working capital and we expect working capital to stay constantly negative in the future. On the receivable side, SIG has various securitization and factoring programs in place. Whereas on the payable side, on the one hand, SIG has a high negotiation power with its suppliers and on the other hand, and most importantly, SIG has various customer incentive programs in place which increase in line with the sleeve sales and thus mainly drive SIG's negative working capital. Okay. Now we take a look on how all of this translates into the evaluation of SIG. Based on our intrinsic valuation, we issue a target price of 26.3 francs which is the upside of 15% over the closing price of the 20th of January. Our key valuation assumptions are a weighted average cost of capital of 5.7% which is based on a cost of equity of roughly 6.4% and a cost of debt of 3%. In the long-term, we assume a terminal growth rate of 2.3% which is in line with the long-term GDP growth expectation in SIG's operating regions. Nevertheless, we have also looked at comparable companies in the packaging industry. However, we find them of limited significance for SIG. Of the packaging companies, only EloPak and Gradyu also operate with great extending the septic carton barrage industry which is key to the evaluation of SIG. However, they have a different business model and are much smaller. Gradyu for instance is listed in China and operates on a copycat business model. But if we look at the peers, we see that SIG is the clear margin outlier and has proven its resilience during the pandemic. Both factors, which in our opinion, justify evaluation premium. In order to check the robustness of our evaluation, we have created corresponding upside and downside scenarios. For instance, in the upside case, we assume an increased growth in the MIA and APEC region. On the other hand, in a downside case, we do not assume any market share gains at all and also a very limited material pass through. But even in those severe scenarios, we see a limited impact on operating performance in terms of EBITDA as you can see on the right, which underlines again the resilience of SIG. Now let's dive into the ESG assessment of SIG. We consider SIG to be a high performer in the environmental category. As we've established before, SIG sets a strong focus on the footprint of its product, which includes the entire lifecycle from sourcing to recycling. A key issue that we have identified in the social category is the low share of women in SIG's workforce, as well as executive management and board. We remain unsure whether SIG's current efforts will suffice to reach the gender target of 30% for leadership roles by 2025. In terms of governance, we're happy to see that SIG has introduced sustainability as a KPI for management's short-term compensation. But we are critical of whether the high share of group EBITDA and revenue as a KPI may over-incentivize further acquisitions. Last but not least, a quick take on the risks that SIG is facing. We have identified company, industry, and regulatory risks. However, in our opinion, none of those risks has a high impact and high probability of occurrence at the same time. For instance, if we don't get rising commodity prices, which in our opinion, have a relatively high probability of occurrence, we have seen before that SIG has managed well to pass on those two customers. On the other hand, quality issues would have a high impact on customers in SIG. But SIG has managed well in the past to avoid such quality issues and is consistently improving its sleeves and filler to avoid such issues in the future. So concluding our presentation. SIG has a business model that enables high resilience and best-in-class margins. SIG will be able to capitalize on the key growth markets in APEC and MIA. And SIG is clearly a sustainable leader in a sustainability-driven industry, which is why we issue our buy recommendation. Many thanks for your attention, and we're very happy to dive into Q&A now. Thank you. Thank you very much, dear team from University of St. Gallen. Dear judges, you may start with questions. I'm going to the first raised hand. The first question goes to Peter Romanzino. Hi. First of all, congratulations. You are one of the only teams that gets ESG, that it's not E, but it's ES and G, and not just the environment. We see that all through the industry, it's terrible. Secondly, my first question. I struggle with your statement that when the company sells fillers, do they really sell them? I apologize. I've been using the wrong word. It was supposed to be installing. So SIG is installing fillers, and maybe some of my colleagues can go into the financial implications of that. Because there are important implications, financial implications. What are they? Yeah. If we can go on the CAPEX slide, I can add on to that. So, Maxi? Yeah, what they're doing, they're pretty much leasing the fillers to their customers over a lifespan of approximately 10 years, but they get an upfront payment for those fillers. So, of those 100% investment, roughly 60% is taken by SIG, and the rest is on average by customers taken, which kind of reduces that CAPEX upfront. And that is then recognized over the coming years as the third revenue. But what is the implication of this? There are very important implications of this. What are they? Capital intensity. Capital intensity leads to higher margins. If you use a lot more capital, you have to have higher margins. So, why do you... Can you explain me the margin gap of these 10 percentage points that you identify? Is that due to better performance or higher capital? Can you look into that? Or maybe Johannes, you can add on the margin benefit of... Yes, so what we see there on the one hand, it's this razor-raiser blade business model which is going into that direction. So, once a filler is installed, it's really difficult for a customer to switch to another provider because that would essentially incur buying a new filler system. So, this is somehow... Yeah, the same like razor companies are giving out the razor itself very cheaply and then you pay for the blades. That's what we are seeing here. And then, in addition to that, we also think that the margins of SIG are higher than industry standard because SIG has this unique sleeve system which results in concrete, tangible benefits for the customer compared to a tetrapart system, for example. And these benefits enable SIG to engage in value-based pricing and to really charge a premium compared to other solutions because the technology is creating savings and other benefits for the customer in the long run. Thank you very much. Next question comes from Katrin Hittas. Yeah, so I'd like to know on the valuation side, you mentioned the two concepts and I wonder how you weight both. Since you say like the peer analysis probably doesn't have so much value for you and also like premium, why did you sign any premium there at the end? Sorry, I didn't get the last part, but hopefully that was hard to understand. You mentioned that you always clear that this must come with a premium to peers. So did you assign a premium then to the peer analysis? And if so, how high is that? Okay, on to the first part, maybe that was not clear earlier. We haven't made any split, and Asia is fully based on a DCF approach. Why is that? Because we consider that the peers are hard to compare or not to compare to SIG as we can see on the next slide, which is why we base our valuation of the DCF where we can factor in the specifics of SIG with its razor-raiser-blade business model, the market size that only Tetra Pak would also have, but they're unfortunately not listed. And that's why we do not consider Elo Pak and Craig US peers for the valuation based on a DCF. And well, what I meant with that it justifies a premium, we see in our evaluation here that SIG obviously creates at a higher multiple compared to peers. And two reasons we think that it's justified is on the one hand on the left, that SIG is clearly the margin of lack. And another thing is the resilience proven during the pandemic. So those are factors that in our opinion, justify that delta in the valuation multiple. But of course, they also add other factors. And one could be that the size SIG has compared to Elo Pak and Craig US, for instance. I hope that answers it. Thank you. The next question comes from Florian Estero. Thanks. You have talked about the acquisitions that they have done, both the JV and then the two large acquisitions they have done. You have not assumed that any of these acquisitions have any margin impact. Why is that? Actually, we do have so the Mia JV acquisition as well as the Evergreen acquisition are included in our model. So we see margins going down slightly and that is included. And however, due to the size, especially of the Evergreen acquisition that doesn't put too much margin pressure on SIG. Okay, but if I look at your margin expectations, right? You have the dip due to the pandemic, but next year, they're already back at the sort of what I would call a normalized level, right? On this chart, you have straight EBITDA margins. There's no impact from any of these. As we see, we see a slight dip, I guess we expect SIG to quickly recover from that and integrate the companies so that it wouldn't have too much of a margin impact. And as I said, the Evergreen acquisition is rather a small one. Okay, and maybe a follow up questions. I mean, Peter already talked about it on the ESG side. You did the a little broader ESG analysis. How did that ESG analysis inform your recommendation? How does that support your investment case? Absolutely, I'm happy to take that. So for ESG analysis, we were really focused on trying to identify any potential red flags, any potential risks that we could see. And as we mentioned in the presentation, we saw that we have two key risks here or two things that stand out. So on the one hand, that is a low share of women. As well as this mix of the short-term compensation for the management. So these are just two things that we kind of wanted to highlight. But overall, we are not too concerned about two risks. These two risks, since SIG is also taking active measures, especially when it comes, of course, to the lack of female talents. And for the governance aspect here, the share of the short-term compensation actually only makes up around 40% of the overall compensation. So we're not too concerned about that, but we still wanted to highlight it kind of as potential red flags that we came across. Thank you. My question is related to your sales growth. You have 10.5%. What over the next few years, what is the breakdown into organic growth, M&A and currency impact of the 10.5 figure? Sure. So the 10.5% are including the acquisitions. So nominally, without lack for life, we would have a keger of about 7%, 8%. And then if we go the appendix, we can also see the changes in inflation that we expect, which will also drive the revenues hardly. And with 7.8% keger, why is your margin assumption flat? Especially if you look at historic margins, we see that margins in MIA are a bit less than margins compared to Europe, for example, also in APEC. So if we assume MIA being a main growth market and expecting roughly the same margins as historically, this will then flatten out. Thank you. Next question comes from Peter. Just a quick one. Why do you expect the milk market to grow that much in China when basically the whole population is lactose intolerant? We looked into the exact question because we were also wondering how these numbers come. But actually the Chinese government is on a massive mission to promote the consumption of milk. Milk is seen as a status symbol in the rising middle class. So having a glass of milk in the morning is a big symbol of some basic affluence. And then you got an account for the fact that milk consumption also includes milk, which is modified in a way that it is consumable for lactose intolerant people. In addition to that, there's also the fact that if children from early onwards drink milk, even if they have this position of being lactose intolerant, they can still develop a slight tolerance level. So unless you don't consume milk excessively, it won't lead to any health consequences. Is this problem with Paris in this case? They need a lot more cows. Time is over. Thank you very much. Thank you. Here at the University of Saint-Germain. Thank you. Yeah. I would like to thank the judges of this afternoon, Katrin Hitta, Markus Matuszek, Peter Bensäger, Christoph Gretler, Peter Romanzina, and Florian Esser. You guys are always here to support this educational project as judges. Thank you very much, dear guys. Thank you very much also to Florian, who is the founding father of the CFA Institute Research Challenge in Switzerland. Thank you also here. And I would like to recognize also the countless graders, experts, mentors who basically supported all 10 universities and all 34 teams in their development over the last few months. We had more than 80 volunteers from CFA Society Switzerland. Finally, quickly the sponsors. Thank you very much, Dear BCG, KPMG, and Credit Suisse for your partnership and support. And with these closing remarks, I would like to close this afternoon's presentation session. We see each other at 7 o'clock for the award ceremony and the judges will be moved to a breakout room. Thank you very much and see you later. Thanks a lot. Bye. Good evening, everyone. We will just allow a few minutes until our participants are joining. Hey, perhaps we can start now. Good evening and welcome to the award ceremony of the CFA Institute Research Challenge in Switzerland and Liechtenstein, 2022. CFA Research Challenge is a great test for all students who are bold enough to face it. And like any other great challenge, the opportunities and rewards it offers are even greater. Research Challenge is about real-life experience of financial analysis. It is about telling a story because that's what's going to change to make a change. You can do sophisticated analysis, but if you cannot communicate what it means and why people should care, then it just doesn't make the same impact. Research Challenge teaches students about the importance of teamwork. And finally, Research Challenge is a confidence-building exercise. Dear students, you did great today. Your presentations were amazing. We are very proud of you and very pleased with what you have achieved. And we look forward to seeing what more you will achieve in your professions. Research Challenge would not be possible without support of our volunteers. And this year, more than 80 members of CFA Society Switzerland worked with students in one way or another. We had industry experts who were teaching at universities. We had industry mentors who worked closely with students on their research reports and their presentations. Then graders who read and review all reports and finally judges. Thank you all for the time, passion and expertise you are sharing with students. Also a big thank you to our faculty advisors and their colleagues who helped with organizing the courses and teaching. We hope you enjoyed the experience and we look forward to meeting new generations of students in this competition. We are especially grateful to our sponsor of many years, Credit Swiss. We are together for 13 years now and we look forward to working together many years to come. A big thank you to our new sponsors, BCG and KPMG. We did a lot for our students. Thank you so much. Finally, we would like to thank our media partner, Finanz-Umbirschept. They are regularly covering the research challenge in media and they provided students with free online subscription to their news feed. And I would like to mention a very special Karen Cody from Cody International. She's working with students and she's very passionate about improving their presentation skills. And now it is my honor to introduce our first distinguished speaker this evening. Her name is Nanette Heckler. She's the head of global economics and research and chief investment officer of international wealth management at Credit Swiss. Nanette, screen is yours. Well, thank you very much for the introduction and my great congratulations to all of you who have taken this challenge and who have gone through the learning experience of it. Regardless of how the results are actually going to pan out and some of you will be celebrating once we are getting the names. But what is really critical about the exercise altogether is all the experience that you gain hands on by going through this challenge. It is my pleasure to address you today from New York City, where for the first time after such a long period, I have finally come to visit. I have a team or part of my team and my colleagues here and it is great to be back. It is one of the great attraction points I find that the financial industry continues to have. In the financial industry, I have to say that as a head of research for many years at Credit Swiss, the CFA more generally, but also the CFA challenge have constituted an essential pathway for many of our past recruits, financial experts and also professionals that were then going on to pursue their careers elsewhere in corporations. It is a way the research challenge for students that have not yet had the chance to gain much experience, hands on working experience to actually deep dive into a company and to come as close as possible to what may be a reality of your professional lives to come. But even if it isn't, the fact that you learn from so close about the issues that we have to face, that we have to analyze and that many decision makers actually have to take decisions on in itself is going to be valuable to you whatever the direction you are going to take your career. In fact, starting and sustaining careers with learning experiences is something that you will find all along your future way. At the beginning, when you are preparing to make yourself interesting as a profile for international companies, for example, that are looking to hire and that you are looking to join in, it is very critical for you to start building an expertise that can differentiate you from other candidates, from other competitors for the position that you are interested in. And experiences like the research challenge are one way of differentiating yourself. At Credit Suisse, for example, it has been mentioned for many, many years. It has been one way for us to identify students and therefore potential professionals, colleagues of ours that are willing to do the extra mile, willing to collaborate with others around a common project, that are willing to show initiative and also that are willing to make an effort. It is a way for you to show all of these, I would say skills and attributes of personalities that especially international companies are so keen to identify. But also being able to build through learning is something that you will find along the whole way. Whether you are a junior professional or at most senior levels, in fact, we can speak about a lifelong learning experience. Some of you may be familiar with trends and are interested to see how things are developing. And for those of you who are in that camp, I can share with you that Credit Suisse in the research area that I'm responsible for, for several years now, we have taken a lot of attention around long trends, around structural shifts that are happening in areas like labor market, employment, but also in many different areas related to behavior, human behavior. Indeed, human behavior is at the source of many investment trends. And therefore you will find that we have started understanding the labor market developments much more closely because we believe there is actually opportunity for the private sector to make a great difference in accompanying people of all seniorities into career changes, equipping them with the skills that are required for the new jobs that they're looking for. Indeed, over your own future career, it is likely that you will change direction, perhaps once, twice, or even several times because potentially also your careers and your professional lives are going to be longer as also longevity is increasing. So you can see everything from demographics all the way to how we are accompanying technological change, how skills are demanded to adjust accordingly. All of that will require you to do continuously efforts such as those that you have brought to the fore in this particular project. So I think as I address you here at the end of what I know has been a great effort and exercise that has taken many hours and demanded many different skills from how to synthesize a number of very complex data to analyze and propose actually way forwards as well as to present in an effective way. All of that is going to be demanded time and time again in your future career. So what an excellent training that you have undergone. In that sense, it remains for me to wish you and the CFA society to continue success with the important work that you are all doing, you for yourselves and the CFA society for the various groups of professionals that they are contributing to prepare for their future. Whether it is in finance or in the corporate world and I already congratulate very warmly the students who participated took the learning curve of the CFA research challenge and naturally those that actually walk out as the winners. It's time to celebrate. It is time to pass on also the word to the next speakers. Thank you, Nene. Thank you very much. I would like to invite now our second speaker who you know very well. He's the chief financial officer of our subject company, SRG Frank Herzog. Frank, maybe you can unmute yourself. Here we go. Well, thank you for the kind introduction. I hope you can hear me now. I unfortunately do improvise and switch to my mobile phone but let's see if the iPhone is as good as the computer and the laptop. But let me start first to really say this is a very exciting event. And we're very pleased that SRG was chosen as the case study for the award this year because we're a new kid on the block. We've only been listed for three and a half years so as a newcomer to be selected, we see that that's quite an honor for us. And I think also there were a lot of challenges in analyzing us. We think we're fairly unique, at least our closest comparable is not a public company. So you couldn't just say, okay, what do other companies do in the sector because that is not a well-researched sector in that specificity of our business. So there was an additional challenge and I was very impressed by the results and by the output that the quality, the analysis, the thought process that went into that shows to me that there will be smart people managing smart money in the future. I think Orgis well for the professional of financial analysts, both buy side or sell side. So that was quite impressive. I think the other point that I really noticed was to see how you address the importance of ESG in your reports. That is clearly a topic that is becoming more and more important and is for us really central to our business and our strategy as a packaging company where ESG, recyclability, the environmental footprint, the carbon emissions, how this compares, that important decisions for our customers when they choose different packaging alternatives and therefore it is important for our business and hence important for us as a listed company in our stock. So that was something that is a decision point that is important for most investors and pretty much every investor meeting we have addresses ESG questions. But then we've started out and you thought it's a fairly straightforward case. They do one product and I think we do that pretty well. It's organic growth case. And then we threw you a curve ball and we announced two transactions in the space of a month. Obviously we could not have warned you of that as you can easily imagine. But you probably were also relieved that you didn't have to incorporate those in your reports because that would have been quite a task and challenge. On the other hand, it's kind of a real life experience for the analysts that cover us in the market. We announced the larger of the two acquisitions on February 1st and within 24 hours they want to perform a view. They wanted to talk to their clients so they had to do some research, talk to us, interact with us and understand what it means and then come out with a view and refine that over time as they learn more. And that's also for us as a company we spent the last two weeks talking to analysts as well as investors in Southside that helped them understand the rationale behind the acquisition, how, what it means for our business strategically, financially, but also from the ESG angle. And I think that's a real life example where you would then in professional life be also challenged to come up with a view and then do your own research based on also the discussions you have with us. And for us, there's obviously very exciting acquisitions. It really strengthens the core of our accepted carton business which itself is going from strengths to strengths is the strong preliminary results that we released together with the announcement of the acquisition show. So adding it not only an acquisition but also understanding how the last year developed and finding a view on this again, a real life challenge that you as a research analyst or as an analyst on the buy side would have to grapple with and grapple with on the time pressure. And I mean, if you look at these acquisitions smaller on the first one, Evergreen Asia gives us very interesting exposure to the liquid dairy market in China for fresh products which is a sub-segment that is growing rapidly and it helps with our strategy to expand in new categories and that is a new category, but we wanna grow and we have the way to innovate and move that category forward. And the bigger one of the two was Charlotte IPN, a business which has a lot of attractive similarities, but also very complimentary elements with our existing business. It's the same end markets in terms of resiliency and of steadiness of the demand of packaged food and it has high barriers to entry and has also a very sticky revenue model that is in our business as well as gives us then access to the US market. We can take them onto our emerging markets platform. We can get into new categories with wine and water and we're also expanding our portfolio to much smaller packages and also to more of an industrial further up the value chain in the food industry. But those are also all things that people have to quickly understand and realize the strategic rationale behind it. The other aspect in these discussions was always ESG. How does that work from an sustainability side? How does it broaden our leadership in this area because it enables us to offer the most sustainable packaging solution across a wide range of categories and product sizes. And that's again, these G angles always a critical question that you have now when you do acquisitions, how does that change your profile? And particularly if you're not doing an in-market consolidation, but if you're buying into more adjacent businesses with overlaps, but that's where you will have to quickly find the rationale and the strategic focus on it. And then there's obviously the usual financial aspects of the transaction, about valuation, accretion, dilution, impact on Rosy and return on capital employed. All those aspects will be scrutinized quickly and thoroughly by you and the future. Same thing with the financing and the capital structure. How does that change the profile are we able to continue on the deleveraging trajectory that we've been on? What aspect is that that we continue to deliver while paying also a dividend? Those are all the points that we communicated to the market to may help the market and you as by future, interlocutors on the research side that you understand strategic and financial rationale and then ultimately support the transaction. So that was perhaps a little bit of an update also on what we have been doing and I'm sure some of you have seen the presentation that we gave or looked on the webcast and the Q&A, but that is a real life example and hopefully it gave you another taste of the challenge and the excitement of the work as a research analyst. Obviously for me as a CEO, that is very exciting and that's why I'm also excited that we're able to support this event and this competition today. I think there are a lot of very, very qualified candidates in here and tough job for the jury, but I think that's a good tough job to have for the jury and as I said, the beginning very impressed about the quality and the work that has gone in and I also wanna echo what previous speakers said, this is a learning opportunity and yes, the Olympics at the moment. So I think that Olympics spirit of participating whether you win gold, silver or bronze being part of it and having the experience is what counts and I hope we were able to give you a good experience for this competition and that you learned something and we're able to help you advance your studies, your career, have the learning experience and with that, I want to congratulate in advance. There's still unknown winners but I think for me at the end everybody who participated is a winner. So thank you very much and back to you. Thank you so much, Frank. That was so inspirational. Same with Nanette's speech. Okay, so I think it's time has come that we announce the winners. I know that everyone is very excited about this. So I invite Florian Esther to tell us who is third place, who is second place and who is the first place. No, no, let Olli do that. Let Olli do that. Olli, it's your turn. You go. Students, you can unmute yourself now. We would like to hear you celebrating. Not crying, nobody has to cry. So where's Olli, actually? Olli, you're on mute. Olli, can you unmute yourself? He's more excited and nervous than the students, I think. All right. So this CFA Institute Research Challenge in Switzerland had two components, the research report and the presentation, both counted 50%. Yeah, I'm going to announce in decreasing order, third rank, second rank and first rank. Let me congratulate for the third rank University of St. Gallen. Thank you and congratulations. The second rank, let me congratulate University of Liechtenstein. Well done. And the third rank. Sorry, Olli, can you please unmute yourself? We want to hear you. Okay, Olli, go ahead. And the third rank, the first rank is University of Lausanne. Okay, students, congratulations to everyone. Everyone did a great job. If this was in person event, this is what you would receive. But are you going to send it to you? Would you like to say something? Okay, so first I'd like to thank my whole team, every team member. No one came out as a clear leader. Everyone worked as much as each other. I'd also like to thank Norman and Sam and our wonderful mentor, Henry, for the valuable insights and advice he gave us along the way. Congratulations to all the teams who participated in this challenge. And also thank you to Olli, Mirjana and Florian for putting up this wonderful challenge. Thank you. Thank you all for your hard work. I think, very good. So with that, we will finish the live streaming and maybe please ask three teams, three winning teams to stay online. And just as a reminder to everyone, Lausanne and University of Liechtenstein will participate in further competitions and they will compete with their colleagues from Ibiya region. Thank you again everyone and wish you a lovely evening. Thanks guys. Thank you very much. Thank you. Bye. Thank you so much. Bye bye, have a nice evening.