Q3 2022 Palantir Technologies Inc Earnings Call

Its website during the call we will make statements regarding our business that may be considered forward looking within applicable securities laws, including statements regarding our third quarter and fiscal 2022 results management's expectations for our future financial and operational performance and other statements regarding our plans prospects and expectations.

These statements are not promises or guarantees and are subject to risks and uncertainties, which could cause them to differ materially from actual results information concerning those risks is available in our earnings press release distributed prior to market open today and in our SEC filings, we undertake no obligation to update forward looking statements.

As required by law.

Further during the course of today's call, we will refer to certain adjusted financial measures. These non-GAAP financial measures should be considered in addition to not as a substitute for or in isolation from GAAP measures.

Additional information about these non-GAAP measures, including reconciliation of non-GAAP to comparable GAAP measures is included in our press release and Investor presentation provided today.

Our press release Investor presentation, and our SEC filings are available on our Investor Relations website at investors Dot <unk> Dot com.

Over the course of the call we will refer to various growth rates when discussing our business.

These rates reflect year over year comparisons unless otherwise stated.

Joining me on today's call are Alex Karp, Chief Executive Officer, Sean Zhang Our Chief Operating Officer, Dave Glaser, Chief Financial Officer, Brian Taylor, Chief Business Affairs, and legal officer, and Kevin Kellys Hockey Global head of business development.

To begin today's call will open with a few highlights from foundry gone, where you'll hear from Alex as well as representatives from Jacobs Tyson Foods, William Apache Swiss re in space systems Command.

Okay.

When you build software products you try to build them based on the way the world is in a way to transform the world into a better place and I don't think that's optimism or pessimism I think thats transformism. It's how do we take the business and move it from year to year in a very short period of time by the way time take the timelines cut them.

<unk>.

Or divide them by five.

Unlike you want transformation goals that fail.

At a high level. So it's like Oh, you need two years to this great I want to see it done in two months.

This will serve us all the problems.

And you see one of the reasons special operators or special operators is because the timelines are tight the budgets are actually thinner.

Special operations communities operate with less money.

In less time and more constraints and then compare the output once we implemented pushing recommendations to the field stuff we dropped 20% at this particular site. It's a small plant, 20% still $300000 in our budget that's direct money for us. So this is tremendous generated a lot of interest in the company as you can imagine because we have 300.

<unk> sites you can do the math our value here is that we've had about 20 different projects, we've created over $200 million in value.

Savings, that's a big deal right.

This has all been in two years.

It's hard to beat that's really hard to be the time to analyze we basically recipe reduce that same factor.

Foster learning, we could fly more orphan lung foster is this fearlessness about data.

We all often talk ourselves out of things in terms of why we can't deliver this why it's going to take too long whites prohibitive, but volunteer brought I would say a refreshing fearlessness to that part of the discussion about a third of the company has now active user for foundry. We started with use cases like a real problems that has.

Huge impact on the company and we had several very good successes together with policies and one of the things I'm very personally proud of and.

Part of the team there are 15000 soles that would not have been able to do them evacuated unless we had had that foundation.

I'll now turn the call over to Ryan.

We generated $478 million in revenue this past quarter and $37 million and adjusted free cash flow, marking our eighth consecutive quarter of positive adjusted free cash flow.

Despite significant geopolitical and macroeconomic uncertainty our government business surpassed the $1 billion revenue Mark on a trailing 12 month basis, and our U S. Commercial business grew for the ninth quarter in a row rising 53% year over year.

The number of customers using our software, including leading commercial and government enterprises in the U S and overseas also increased substantially this past quarter rising 66% from this time last year.

We increased our U S commercial customer count to 132 at the end of Q3, a 124% increase year over year.

Our expanded footprint within the market is a reflection of our ability to both reach additional customers and grow existing relationships. In particular, we closed 273 deals this past quarter, representing an increase of 63% year over year 19 of those deals where at least $10 million in total contract value.

32, where at least $5 million and 78, where at least $1 million.

We have come as far as we have by consistently engaging with some of the hardest problems that the world and our customers have faced since our founding.

For example, our work and supply chains, which is increasingly scaling into ecosystems is powered by foundries data integration capabilities.

This year alone. We have started 25 supply chain projects. This includes the expansion of our work in shipbuilding at Hyundai heavy industries, bringing the partnership to over $45 million and the expansion of our work with the FDA to modernize food supply resilience to preclude shortages like the one we experienced with infant formula earlier.

For this year.

The total value of contracts that we have closed in the third quarter reached $1 3 billion, a new milestone for US which includes nearly a $1 billion of contract awards from the U S government alone such as our most recent contract worth up to $229 million with this U S Army research lab to deliver AI ml capabilities across the Dod.

We recognize that our path to growth is not always linear but with the opportunity that lies ahead, we continue to recruit and retain the top talent at a time when other companies in the technology sector are slashing their plans and cutting workforces.

I'll hand, it over to Sean for further discussion regarding our business and product strategy moving forward.

Thanks, Brian we have spent the last two decades building our products for the world in which we actually live the disruption and uncertainty that we're seeing around us from Ukraine, the pandemic and inflation, it's driving customers towards us and to our software as the world continues to struggle with concurrent supply chain and energy crises pounds of your customers have been able to use foundry.

To connect and integrate decision, making within their value chain from the suppliers to their customers to instantly tradeoff possible courses of action.

You just saw highlights from two flagship events, we held in Palo Alto in London for our customers to share their experiences with each other customers underscored the significant impact our software is having across industries.

Executives at Tyson foods shared how they generated $200 million of annualized savings in 24 months Jacobs engineering shared how our software has reduced energy consumption by one fifth at its first wastewater plant running on foundry with the potential to generate $90 million of annualized savings across their 300 plants.

Swiss re shared that they save more than $100 million in the first year of use alone more than 35% of employees at Swiss re use our software on a regular basis.

Our moment of macroeconomic uncertainty that differentiation has never been more valuable to the market than today.

These customers consistently focused on our ontology is the decisive factor in delivering results quickly.

Our strength, particularly in the U S. Commercial market has also received increasing recognition across the industry Gartner ranked us as a visionary in data integration IDC ranked pelletier is the number one AI software platform worldwide by 2021 market share and sales, beating Microsoft IBM, Amazon and Google Forrester.

<unk> is the leader in artificial intelligence and machine learning platforms and there is no place where time to kinetic impact is more important than on the battlefield in the government sector. Gotham has become the choice for U S and Allied defense organizations around the world.

We have now officially received EOD IL six accreditation a critical milestone for our broader government business further, enabling our SaaS offering on secret networks.

And our new fed start offering builds on our pollo to enable software companies to achieve fed ramp authorization in record time and at a fraction of the cost.

In addition, we had our tightened vehicle on display at the annual a USA conference where it was met with positive reactions from the U S government partner Nations and the industrial base.

From the kill chain to the supply chain our products ensure that there are no missing links.

Turn it over to Dave to take us through the financial results from this quarter.

Our U S business continues to be the most significant driver of our growth.

U S revenue grew 31% year over year to $297 million and on a trailing 12 month basis U S revenue grew to 1.11 billion.

Our commercial revenue in United States grew 53% year over year to $88 million in our core U S commercial revenue, which excludes our strategic investment program grew 47% year over year and 7% sequentially.

U S government revenue increased 23% year over year to $209 million on customer count are net new U S. Commercial customers grew 124% year over year, and 11% quarter over quarter, marking seven consecutive quarters of sequential growth greater than 10%.

Turning to our global top line results third quarter total revenue grew 22% year over year to $478 million ahead of our prior guidance, even when factoring in an additional $1 4 million currency headwind since we issued guidance.

Overall net dollar retention was 119% remaining constant quarter over quarter.

Commercial revenue increased 17% year over year to $204 million.

Our international commercial business was roughly flat year over year and continues to be affected by both the macroeconomic conditions and the strengthening dollar.

Number of our customers in the United Kingdom, Europe , and Asia enter into contracts denominated in U S dollars and as a result, the strong dollar hasnt been a significant headwind for them.

Government revenue increased 26% year over year to $274 million, we saw our government business across another major milestone this quarter as we generated 1.02 billion on a trailing 12 month basis, surpassing the $1 billion Mark for the first time.

Our customer count continues to increase at a significant rate. We added 33 net new customers in the third quarter, bringing our Q3 2022 customer count to 337, 66% increase year over year, and an 11% sequential increase.

We added 25, net new commercial customers, which represents 98% growth year over year and 12% quarter over quarter.

Our revenue within our existing customers also continues to expand trailing 12 months revenue from our top 20 customers increased 15% year over year to $48 million per customer.

Third quarter billings were $509 million up 47% year over year.

In the third quarter total contract value or <unk> was $1 3 billion U S. GCB booked was $1 1 billion, 90% of which was attributable to our U S government business.

The third quarter GCB figure was driven significantly by renewals and expansions of existing U S government contracts, a portion of which have already been funded to date for.

For total remaining deal value, we ended the third quarter with $4 1 billion, a 17% increase quarter over quarter.

Quarter over quarter growth in total remaining deal value was driven by our unusually strong performance in GCB.

As I previously mentioned the <unk> of our U S government contracts accounts for both funded and unfunded contract value and we're seeing this pass through to our total remaining deal value. We saw headwinds to remaining deal value as a result of executing on our previously announced plan to cancel all remaining unfunded strategic investment commitments.

We ended the third quarter with $1 3 billion in remaining performance obligations up 43% year over year.

As a reminder, RPM was primarily comprised of our commercial business as it does not take into account contracts with initial term of less than 12 months and contractual obligations that fall beyond termination for convenience causes both of which are common in our government business.

Turning to margins and expense adjusted gross margin, which excludes stock based compensation expense was 80%.

Third quarter, adjusted expenses were $397 million up 9% sequentially.

The sequential increase was driven primarily by head count related expense as we had 450 net head count additions in the quarter, our largest hiring quarter of the year and including 141, new graduates who joined in quarter.

Third quarter adjusted income from operations, excluding stock based compensation and related employer payroll taxes was $81 million, representing an adjusted operating margin of 17% 600 basis points ahead of our prior guidance.

Our adjusted operating margin significantly exceeded our guidance as a result of several factors, but primarily driven by cloud and deployment efficiencies representing around $9 million of outperformance and the elimination of certain discretionary spend across the business, particularly in G&A, representing approximately $14 million of outperformance.

We expect to continue to see efficiencies in the fourth quarter and we'll remain disciplined in our approach to discretionary spend in this macroeconomic environment.

Third quarter adjusted earnings per share was <unk>, which includes a negative <unk> <unk> impact driven by losses on marketable securities.

We generated $47 million in cash from operations and our adjusted free cash flow was $37 million, representing a margin of 10% and 8% respectively. This marks our eighth consecutive quarter of positive adjusted free cash flow on a trailing 12 month basis, we generated $231 million and adjusted free cash flow and $238 million in cash.

So from operations.

We ended the third quarter with $2 4 billion in cash and cash equivalents and no debt.

We retain access to additional liquidity of up to $950 million through our $500 million revolving credit facility and $450 million delayed draw term loan facility, both of which remain entirely undrawn, our balance sheet leaves us well positioned to capitalize on opportunities that may arise in the current macro environment.

Now turning to our outlook.

For the full year 2022, despite a negative $6 million currency impact since our prior quarter's guidance, we are reaffirming our revenue guidance of between $1 nine and $1 902 billion.

Excluding such impact we would expect full year 2022 revenue of between $1 906, and $1 908 billion.

We are raising our outlook for adjusted income from operations for the full year. We now expect adjusted income from operations of between 384 and $386 million.

For the fourth quarter after factoring in a negative 5 million currency impact since our prior quarter's guidance, we expect revenue of between 503 and $505 million, excluding such impact we would expect fourth quarter revenue of between 508 and $510 million.

We expect adjusted income from operations of $78 million to $80 million.

With that I'll turn it over to Anna to start the Q&A.

Thanks, Dave will begin with two questions from our shareholders before we open up the call. Our first question comes from Ryan who asks can you speak about the current competitive landscape and elaborate how palin care products standout against the newly launched Microsoft data platform Salesforce Genie in the Snowflake platform that are attempting to offering all in one solution.

Calgary.

Tom you want to take that sure.

Well thanks Ryan.

The answer is really the ontology, it's why our platforms remain far ahead of the competition and that's because the ontology. It's the missing link in terms of what you need to realize value from all of these investments. It's the component and the architecture thats required to get data apps to actually deliver value on top of cloud data.

Houses or to get AI to scale throughout the enterprise or should turn your digital twin into something that's actionable on operational within the enterprise and we've spent 15 years investing in our roadmap thats deep and built upon the ontology and it continues to be the focus of all the core investments that we're making around product we are deepening the capability that we're on.

Offering our customers here.

And that's happening against the backdrop, where the competition has yet to understand what the ontology really is but they will and that's really my main conclusion from our foundry kind of events in Palo Alto in London at that our customers were so clearly articulating the role of the ontology of the value. They credited it is really the decisive factor.

In delivering results quickly and there are two things there that should not be taken for granted results.

That are quick.

And so that's I think a key focus here you heard from Deutsche Telekom, They talked about how they don't even bother connecting to data sources that won't be modeled in the ontology because they see so much value.

Reduced effort and increased outcome for the use cases that they're able to build on top of the oncology, we heard that from Rio Tinto, where they talked about at the Oyu Tolgoi mine in Mongolia, how they actually originally modeled risk and operations.

But because they did in the ontology for free they got an opportunity dataset that helped them drive increased production, which is obviously the front end of the business there.

In Palo Alto, we heard from Titans food, where they were able to use the ontology to quickly go from an initial use case around Covid response to a set of use cases that got to $10 million of value then quickly at a $40 million and then finally to $200 million worth of value.

Just a slightly different.

Augmentation of what Shaun was saying.

Maybe a different risks.

That like underscores.

The success of people using our product as people think these products are easy to build and by the way and this is whether it was PG Nexus peering Gaia or foundry foundry wanted at integration foundry to kind of ontology decisions driven.

A lot of people even at big otherwise successful companies.

So from Powerpoint to thin technology under the assumption you can just take ontology you can spell it slightly differently you can spell it the same way and you can impose it on your honestly not very strong software offering that was last year's technology with this year salespeople and it doesn't work that's why we.

Our powering the USDA that is why we are powering war efforts. That's why foundry was used in it saved probably 500000 lives in America, mostly.

People, who are from the underclassmen would've would've died during COVID-19.

And it's why we need our competition to explain to the world. Okay, you need this but but they gravely underestimate the difficulty in doing this we've been doing this for 15 years or thousands of hidden problems that really I don't think any other company understands whether it's the cold chain the supply chain looks like and.

It's wonderful that people are discovering this it's going to take decades to build this stuff. Even if you can build as well as we can you have to discover the problems and that's why our clients.

The evangelism tour, primarily in the U S. Our galvanizing the market and leading to these results.

But the difficulty is just completely underestimated.

Thank you Simon Alex Our next question comes from Graz, who asks what are <unk> plans to grow the business in this challenging macro environment.

I mean.

Other people should we.

We've been predicting a even more challenging macro environment than this for the last.

20 years, I mean, how long have we been in the trenches together.

17, 17 years in the trenches.

The products are built for a disjointed world a world, where you need horizontal and vertical integration, where you in the military context or actually we have low latency, where your systems underlying systems actually don't work, even though in the Powerpoint They say they do.

Where you have to deliver results overnight, where your business totally EFT and you got to make it work in a quarter.

That's what our business is built for by the way. That's why we prepared then thats. The technical thing why do we have a quarters of free cash flow do you think it's a coincidence we were preparing for this we have why do we have $2 $4 billion in the bank and no debt.

We werent living in the medicine, we were living in this world and the way we thought it would be and we've been essentially you could even look at us as a prep where our PREPA company we've been preparing.

PREPA has have their rucksack and the rifle, we have PGE Gaia foundry and.

$2 $4 billion in the bank and no debt.

That's our company.

Thanks, Alex next question is from Brian <unk> with Jefferies. Brian . Please turn on your camera and then you'll receive a prompt on mute your line.

Good morning, Dr.

Dr. Carb on the government business at the beginning of the year you had a.

A bigger aspiration for deals to come into the pipeline I think you brought.

US close assumption down I'm curious.

You've seen our pipeline of the government transactions for the back half of this year and into 2020.

It was a little bit okay that breaking up but I think you were saying where do we see the government revenue going.

Look.

We are positive to the world purely financially <unk> had a CAGR of 35% in the USG.

Is that CAGR is included years I think three years that were flat. So we tend to have kind of lumpy growth and flatness, which no. One likes you don't like it we don't like it we're positive that the future will look more like the traditional baseline of 35% then the baseline of this year.

Upper Twenty's.

What is the proof of that okay. I can tell you how our products are being used on the frontline you can read the news you can probably surmise that things like Nexus peering.

<unk> Guy.

Our powering events that you may be reading about and then there is our massive <unk> like.

It's like yet TCE in the USG has just under a $1 billion. This is massive.

There is a legitimate question when do you capture that in the form of GAAP revenue. That's a legitimate question to which we have no answer, but we will capture we will capture it because the contracts have been concluded and because we are sitting on the most important missions in the world.

And those missions are going to end up being fully funded and you see that in our contractual relationships.

Thanks, Alex next question is from Mariano with Bank of America Marianna. Please turn on your camera and then you'll receive a prompt on mute your line.

Good morning, everyone.

By the way don't undo that not that that's inherently.

[laughter].

Oh, I don't know how to fix that's fine I'll go ahead with your question.

So with increased expectation as far as the recession next year.

I understand it's probably too early to discuss specifics about 2000 2023 outlook that would you mind discussing how you're thinking about the positive and maybe that can at least from a global recession or a potential recession, because they think they will.

I think about it as a positive catalyst.

For disruption and increased needs for operational efficiencies for policy, our demand, but also probably lower corporate profits alright challenge, so how youre thinking about that.

We disembark <unk> the World into America, Canada U K and then what it was.

What has historically been a very large market for us Europe driven by Germany.

I think you see happening is that disruption is helping us in the U S. It's driving results that are outsized in U S commercial our LTM in the last 12 months.

$327 million roughly 102% growth.

You see the TCE number in USG, you can surmise what that means so and then the positive side of it is that the integral of U S revenue for US is growing at 61% used to be 48, 49% two years ago. It will be in the 70% range fairly shortly and so the impact of that disruption is much greater.

And.

Slash the disruptive negative effective Europe , especially sluggishness in Europe's motor, Germany will impact us less however, what I believe and other people should talk about is that we're going to see negative impacts because of strong dollar because a slug of it is to adopt new technologies in Europe that will impact our business is <unk>.

<unk> our business. If you took those results the LTM four four for our globe for our U S business is still just under 40% and so if you took out our European market. This would be I mean, obviously results are strong, but they would be flying in lake.

So.

And those are going to impinge us theyre going to continue to impinges. It's just the amount of opinion is going to be less I do think it's particularly dangerous for most people and tech. This environment is not in an environment, where flimsy thin non valuable essentially you churn year data and you show our Powerpoint to somebody who barely understand that technology is going to work just because you've got a great <unk>.

Take dinner and white, that's not going to work and Americans don't expect a lot more than that both in government and in commercial.

Now the rest of the world may not expect more than that and that that's a problem for the rest of the world long term in a problem for us in the near term.

But yes, we see this as a huge opportunity also both because other people fail and we'll succeed.

No.

Look I disruption has always been a huge opportunity for us and I think that's exactly right.

Those geographies of where we're focused.

Thank you gentlemen, Alex our next question is from Gabriele <unk> with Goldman Sachs Cabriolet. Please turn on your camera and then you'll receive a prompt on mute your line.

Hi, good morning, Thank you.

Appreciate that the case.

Hum about tens of millions of savings.

Two questions from my end.

How are you thinking about evolving.

Alright.

Can you give us an update on Hyatt.

Capturing the upside from that.

Well, let's say, giving customers the flexibility with our initial price points and then the second question.

Point to point engineering model, how does that evolve.

Well congrats.

Especially in value.

Does that essentially.

Away from the point to point peering model.

Just wanted to.

Yes, so on the pricing side I mean value based pricing is where we started that's kind of our jam so to speak and I think what we've had to evolve over time as pricing models like usage based pricing that enable enterprise customers to start on smaller use cases nibble into it kind of figure out where it's going to fit in their enterprise come experiential either re.

<unk> the power that the ontology unlocks and then scale that across their operations and you can kind of see that playing out in the case studies, where you know Tyson starts with Covid response, and then scale.

<unk> plus plus plus so like from a small use case to the breadth of the enterprise here and that's been very helpful. For US and then we have customers, who kind of migrate models from usage base to large enterprise contracts as they go I think really for us it's been showing the flexibility to meet the customer where they're at in terms of our forward deployed engineering models like our.

I really think about that as much more in terms of R&D from our shoes like.

How many people are spending time at the coal face asking the hard question of is my software working and I don't mean does it work as in like is there an <unk> is there a bug I mean like does it ethane matter to this institution and in this time of immense macro economic challenge like MRI saving the institution might doing.

Anything thats going to move the needle or is my little churning. The data just moving deck chairs on the Titanic and those are the people, who actually have that sensibility and they're the ones that come up with the ideas of what are we going to build next what can we do now how do we inflect the product roadmap.

It matters.

So we're always going to modulate how we deploy those folks between USG.

Things that are happening in Europe things that are happening at the front lines of our customers' operations. The engineers looking and seeing what we're doing on a large scale.

Mining operations in Mongolia, as it relates to driving our R&D roadmap forward.

Thanks, Sean.

We had a lot of individual investors on the line who submitted questions is there anything you'd like to say before we end the call.

No.

We.

We built this company for.

Really tough times.

The times are tough and theyre going to get worse.

We feel that parents here, we know pelletier shines, whether it's in the anti terror context, the war context, the COVID-19 context for the U S commercial context when times are bad.

Sure.

That this is a long term play.

We are watching our.

Our products and how they are absorbed in the market.

And.

And I really appreciate your support.

Our individual investors mean, a lot to us and to me.

And we are planning to continue to like go into Battle every day.

We are living in this world not in some meta fake world that you may enjoy until you wake up and you are poor her.

Your brain works less well and you hit your neighbor.

We are those size and depth and quality of our revenues matter to us and to you.

We believe we are making the west a stronger and better country.

We see in America, and ability to adapt like no other country to be open to people, who present things in the ways that look batshit crazy and if they work they don't really care and they give you an ability to buy and we celebrate that we are enormously proud of our work defending the west, especially.

<unk> the U S military and its allies I wish I could tell you more about what we're doing and how much it's transforming the world to be a better place how much it scares our adversaries, what we deliver scares our adversaries how much we were underestimated by our adversaries because of the informational technology and products, we built over decades of the quality of the people we have.

Here, the pain, and we go through to deliver and our commitment to win.

Thank you Alex that concludes today's call.

Okay.

Please welcome from talented Sasha visit.

[music] Hi, everybody welcome to <unk> welcome to foundry time.

So excited to have you here in London, we have customers here from all over the U K from all over EMEA from every industry. Some of you have known us for a very long time. Some of you were just getting to know us.

We have the unique privilege and honor of working alongside all of you our everyday and hearing your stories and seeing the important work that you do and so what we're excited to do here today is to have you shed light on those stories yourselves with each other we're going to try to do our best to get out of our own way and we encourage you to.

To spend time with each other here from each other to learn from each other build relationships that span far beyond this particular office and beyond talent here.

Joining us on video please welcome Chief Executive Officer at Mac K G. A a doctor Belang Gary Hill.

Thank you for inviting <unk> to impact of foundry con.

<unk> hundred 54 years and 13 generations.

We have pushed the boundaries of human progress with the best available technologies.

In the late 18 hundreds the best date that technology was this.

One of the first mechanical calculators that could add subtract divide and multiply complex numbers and I can tell you. It was very revolutionary for that time.

Since then they've got technologies have really come a long way and so too harsh neck.

Today, we had a globally diversified science and technology company with leading position across life science healthcare and electronics.

One of our goals is to make healthcare more personalized predictive and preventative another is too.

Make the discovery and development of new medicines faster and more efficient.

Casualty acquires that org.

Organization go on a journey of digital transformation and we have gone through that for many years and I would tell you is not easy.

Most of all.

Our people into the upper scale until they become data literate.

And this can only happen if you build that.

<unk> culture at week immersive culture, what where people can harness the power of data every single day, our foundry platform is the best possible.

This culture is working.

Every week, we have more than 4000 consumers of data on foundry.

Most user cases had made not by engineers, but by staff in all areas.

Some are facing such as sales or customer support, but I'm, saying finance supply chain management and importantly in R&D.

Our continuous pursuit of data driven outcome, she's making metric even more resilient during the pandemic. We became so close that it became hard to differentiate between America and talented teams.

Our partnerships our partnership is based on mutual respect and a common purpose enabled our project teams to operate with tremendous speed and impact.

Thank you for standing by our side as we continue to advance human tellers and with these lower over to you.

Please welcome Chief Science, and Technology Officer at Matt Kg, AA, and Chief Executive Officer at <unk>.

We're lower than that.

So I'm just going to build on a couple of the comments that that the Lin said were a 354 year old company and what that means is that as mark. We're looking for what are the trends for the future and how can we enable the industries that we serve so we support three different industries health care.

Life Science and electronics this.

This has never been more important. These industries, then then through Covid.

And having this data foundation really gives us the opportunity to drive innovation.

The other thing that it's given and I think <unk> touched on it the partnership with pound here.

Because we've had such a close partnership that's been built over the past five years as we look at what these industries need we've also been able to.

To start data ecosystems first with health care.

In 2018, and then more recently in 2021 on semiconductor and that's what I'll give you an overview today.

So diving into the semiconductor industry, just a little bit I think all of us have seen in our own daily lives.

The exponential increase in data streaming services autonomous driving and Iot.

Iot of almost everything.

All of these demand drivers are.

<unk> driving the semiconductor industry forward potentially much faster than I think was anticipated and I can tell you I've been in the industry for 20 years.

There have been times, where where companies were talking about what is the next iPhone application.

This is not the case today the demand has.

Is projected to increase now building this much capacity creates a challenge for the industry.

Because the value chain that exists has to really be.

Enabled to be resilient and bolstered.

So what if any is trying to drive which is a joint partnership between Palin tier and Mark is really to bring the semiconductor ecosystem. Together now you can see in the picture. The device makers are at the at the heart of this because they are really driving the integration of the semiconductor device, but they rely on a very long.

Art supply chain equipment.

Suppliers packaging suppliers material suppliers that enable the chemistries the gases and the chemicals that are utilized to make the devices. All of this has to come together and I can tell you that this is truly a global supply chain.

Any of these materials can only be sourced and specific regions of the world and so being able to bring the entire ecosystem together to collaborate and share data to identify the materials that are customized for the advanced node processes becomes really enabling for the industry. The other key point.

Is that is not only about those suppliers that directly serve the device manufacturers. It's also about this extended supply chain and the sensitivities can go back to the to the or.

That's extracted for some of these processes and so bringing you in the extended supply chain becomes really important.

So we're working with device manufacturers and their supply chain.

To really bring together.

These data streams, so that we can enable the industry to move forward and we see this is critical because if we look at the capacity expansion over 150 billion of capacity has been announced that will come on stream from 2024 to 2030.

With that level of investment.

It becomes increasingly important to make sure that their supply chain resilience in the ecosystem.

And in some cases that there is dual sourcing or local supply chains, where there are critical materials, but it comes down to a couple of key points and a couple of key capabilities that need to be in place make this.

Successful, obviously fundamentally you have to have a solid technology Foundation.

This is built on the trust of data security.

And also the capabilities and the analytics that can keep drying the most advance.

Insights forward.

It also though has to take into account the people and the ways of working and this is really where we're seeing that with investment in those two areas. We start to get significant momentum on the people side, it's not only bringing in the data scientists, but it's also training.

Our entire workforce.

As as Glen said, we have 4000 users, but that's just the tip of the iceberg I mean, we really want by 2024 to have 20% of our workforce trained around kind of basic data literature and I think this is traditionally maybe been a challenge.

For businesses because of course some of the information is very secure.

So we've now got an operating model in place that takes advantage of the foundation of the Palin tier foundry.

As well as AWS.

But also enables a structured way to open up the data and enable our teams to work together across the three very different business sectors life science healthcare electronic very different areas very different requirements, but with the strong structured approach. We can now start to enable collaboration across.

And this has been I think a foundational element that we've seen in the past two years that is really sort of brought it forward.

I'm honored to be here today, and I look forward to learning from all of you as well so many thanks for the time.

Please welcome group, Chief data Officer, and Chief Innovation and transformation officer for corporate solutions at Swiss re Ian Haycock.

Hi, good morning, everybody.

So as introduced my name's, Ian Haycock I work at Swiss re.

And what's interesting is if I sort of talked today on the connected company on some of the topics are already being covered even though very very different industries. So it'd be very interesting to compare notes afterwards.

What I'm going to do today is I'm going to talk a little bit about what we call. The connected company that data connected company in the journey, we've been on with politics.

Making the world more resilient is at the heart of what we do it gives us a real purpose and as I'll discuss today data regarding new possibilities to do that.

Swiss re established an 18 63, there was a huge fire destroyed a town called glamorous in Switzerland.

Clearly show the insurance alone is inadequate in simple terms reinsurance is insurance for insurers.

Today, we're one of the world's leading reinsurers.

And you can see some of the information on the slides behind me here.

Actually cover a millions of risk some of the topics. This morning.

Very relevant to us and in over 100 jurisdictions around the World. In addition to reinsurance we have specialist insurance solutions in particular for our corporate clients and are one of our goals will be to move beyond insurance and into a world of risk insights, which I'll talk to shortly.

Just a couple of examples to try and make it real.

Recently, you will have seen with in Florida versus enormous hurricane.

Ian It is not a good time to be called in insurance industry I can tell you.

I'm responsible for billions of downhole losses.

But huge damage the lives property massive losses for the industry. The reality of the small insurers in Florida would not have been able to cover those losses without reinsurance exactly like in collateral solutia years ago, generally small insurers want to grow their businesses, if they hand off with the reinsurers they can grow their businesses.

Other examples you can look at building.

Building projects, but if you want to build a skyscraper that would typically exceed the risk capacity of any one insurance company again.

Reinsurance can help so there's many many examples of where are we as a risk company get involved with our clients and look to make the world more resilient.

So we consider ourselves to be a risk knowledge company, what do I mean by that why is that not only do we see every type of risk across the world, but we actually assess it and we put a value on it and we put it on our balance sheet. So the dynamics of our balance sheet extremely complicated if you if you consider the <unk>.

<unk> of enforce risk Swiss re runs also insurance companies and ratio that's going to also investors right in front of one of the fundamental things that we do is we have to invest the premiums we receive to payout claims in the future, which can be very very far in the future. So financial market risks are highly relevant for sure is equity credit inflation interest rates and so on and.

So essentially we look at the world through the lens of risk our job is to understand it to find ways to cover it until mitigated and what sets us apart from a typical insurers diversification across all of these risks globally. It's just central to our business model you cant hedge. These risks. So you diversify and this will help profitability over time, but from a data point of view.

The fragmentation so diversification of risk is good for business, it's not so good for data.

Increasingly simply assuring risks is no longer sufficient I mean, we see complicated things cyber risks inflation, what causes what that's doing to society climate change longevity of really having a profound impact on how we live.

And insurance is only one tool so we need to move beyond that we need to do more and this is what data and insights can really help.

So to achieve our mission, we need to broaden our services by increasingly combining human expertise and real data and Stacy at analytics to understand the risk better we can provide additional services to our clients and society.

So as I start coming onto data and data connectivity I wanted to talk about fragmentation.

Fragmentation is a real challenge in insurance and possibly some of the other businesses we've heard today.

I would say is the default natural state of an insurance company at.

At least to date as mentioned we have three businesses are each of these businesses their own CEO of their own Executive Committee, we have an investment decision have likewise setup. They all want their own data and they all want it in the way that they want to see it but then so does the group.

I mentioned, we are in over 100 jurisdictions, what that actually means is that we have.

Individual legally regulated insurance and reinsurance companies in those countries that have their own board that want their own data and so forth.

And then the other one which I think is a little orthogonal is is the contract itself like one of the key products of an insurance company for contract that we produce between ourselves and our clients.

These.

These contracts are massively complicated often reinsurance treaties commercial insurance policies. Many many hundreds of pages.

All of them or many of them very bespoke.

We have millions of treaties and policies and the question is does the data that's in your system really represent what's in our policy and we know about technologies like MLP and so on but they are still nascent.

And have a limited impact on supporting this so when I talk about connected company I'm really talking about gaining mastery of all of this data that represents Swiss re.

And then joining it up so it makes sense from any needed perspective, so whether I want to look at an individual line of business or a policy or a client perspective, or a particular portfolio I want to be able to pick the company of twisted around and find the answer that I need what we did at Swiss re is we defined a data strategy around six fundamental pillars. The first.

One is it starts with the business has to start with the business. It can start with the I T or the tech what are the business needs Where's it going how does data fit in we make the business leaders make the coal it shapes everything else and the other thing that we do is in our different units, they're free to set these priorities and how they do this themselves we have a common framework. So we can then join up across the group.

When he could foundations make the data the scope of all know what we have good architecture design data models, which represent our business. Good plans for shared master data and so forth.

Crucially, we have to advance our governance capabilities at the same rate as we accelerate our ability to use and analyze the data.

The workforce the culture, we need not only upskill their workforce, but we need to change the mindset of many traditional thinking stuff and this is not an easy thing to do it has to be a priority.

Analytics, who need to position these new advanced analytic capabilities data science and so on alongside the traditional ones that we have insurance companies a full of very smart analytical people actuaries clumps and so forth and how do these things coexist what techniques should we use that that's also a focus.

And finally, the technology itself and this is when we finally come to the foundry, which is at the heart of our data strategy.

So how do we do it how do we really make the connected company and this has been an interesting journey for US and you can see on the slide behind me about a third of the company has now active user for foundry.

The journey was in three stages and I'd like to say it was by design, but it wasn't but looking back.

Could make the argument we want we went this way, but it is a very very good evolution. We started with use cases like a real problem that has a huge impact on the company and we had several very good successes together with policies.

But then it became clear that this fragmentation challenge was limiting goes did we really have mastery of our own data.

So the next thing that we have to do is pick then connect so you give the individual business. The most important information it needs to run itself to steer itself.

So we move away from these historical Siloed organize data world to a single what we call analytical data model.

Another little data model is a single representation of our business is data. So all of the users pricing actuaries reserving actuaries underwriters people talking to clients who are looking at the same data at the same time people in the business using the data directly. So we'll have people who are using policy of foundry, who are business people, who are being trained up we'll have our own technology data science experts.

And then we have colleagues at politics.

So really upscaling the workforce.

We've done this now in our major business areas, where we are in the process. Some are more advanced than others. The next step is can we really connect across the company can we truly create a data connected company at the group level.

And we believe we can and we've built one of these analytical data models in each major part and we've been working on designing what we call a logical data model, which is essentially the common language to go across the different parts of the company since cliff or to see and we move away from this hidden operationally difficult to manage semi connected environment.

We've got to be pragmatic, it's super hard.

To do this or what we did is we started with problems at the company needed to solve if we make this a theoretical architecture exercise it will fail and.

And finally going back to making the world more resilient.

This is the opportunity to go beyond insurance or think about insights what about data connectivity for the wider world with talented we're building a risk data services market neutral platform that will enable clients to see the risks using swisher insight or they could use insights from any other provider.

And then she was the published out on the platform. This is a really exciting step in our goal to weight them.

Please welcome global market leader at Pwc Richard wholesale.

[music].

So good morning, everyone. It's a real privilege to be here with you today and am honored thank our friends at parents here for me to come and talk to you.

Now our PUC.

We're excited about the partnership that we have with parents here and it's not because we use foundry in our own business or we culturally work really well together.

It's actually cough that partnership is helping our clients deal with some of their most important problems and my main messages foundry.

It's super exciting and makes me excited about the future because it's an example of an innovation.

That will form the backbone of a new type of economies, we try and deal with those societal challenges.

The reason I'm excited about foundries I honestly believe.

With our minds and foundries technology. It has the possibility to continuously refill our pipeline of dreams.

Thank you very much.

[music]. Please welcome Chief operating officer at Lilian E C M C.

Good morning.

Pleasure to.

To be here with you today.

I'd like to thank you Cam and his team for giving us a chance to.

And you we are actually doing what we do and how we partner with balance you have to do it.

Better and faster.

So what we're doing at lithium based in Germany.

Is basically building a radically better ways of moving that's ambitious so why is that radical.

First we fly we want you to fly and that's correct I mean, most of us fly but not.

The majority of humanity.

<unk> eight point B.

So I'm talking about London downtown to Heathrow.

I'm talking about.

JFK to downtown New York, I'm talking about saving hours of traffic.

Right. So that's that's radically different the second thing is that.

Is it sustainable.

While we are in the year, we don't create emissions, it's electric Wow, that's different so new emissions no pollution less guilt, yes.

It was better because we better think about it is we just held towards sustainable in there.

I think it's for everybody it's.

Not for the wealthy people.

Before everybody.

It has a potential to reach a price point, which makes it competitive with the taxi service because it is very simple.

So how simple it is.

Well, that's the solution, we are defining and building.

It's a jet sexually inkjet is electric.

It takes a vertically so you can reach the visit to the downtown of Cds you can go into very small footprint. In fact, you saw helicopter pad.

And the good news about it is.

Adjusted funds electric funds, so it's not noisy.

Pixar Francisco more than 40 different helicopter pads.

Almost all of them have been shut down because of noise.

So much less noise.

April then helicopters because it has redundancy all these multiple engines.

And that might also look and zero emission.

Eurasia that matters a lot too.

Wow.

So.

That's what we want to bring to the world and that's what we work on.

Now.

It has to be accessible to everybody. So we didn't want to review some of you would have shown a helicopter or it's just not a pleasant experience all the way. So we wanted also to make sure that everybody can have a pleasant experience inside commercial commercial development and basically being ubiquitous around the world means that it has to be a good passenger experience. So the cabin.

Has to be basically configured in a way that is accessible accessible for everybody even people, which are physically build and vessel condition. We gave ourselves. So it's really for everybody right. So that's what we're doing we're actually doing that or stop up 900 employees based in minutes.

But aerospace innovation is extremely demanding.

And I know that I spent nearly two decades at Airbus.

Was the head of quality for the electricity aircraft, which most of you have loans pretty safe aircraft.

Exactly about that bringing innovation to aerospace's, almost smokes tomorrow, because it has to be safe.

Yeah, we don't want to create a use case for the insurance company. We just saw this morning.

We don't want that.

Yeah, not adding one more reason to be with you say Oh, My God I'm in London, and then suddenly you have the risk of this flying stuff just following on my Garden. All My house. So how do we make it safe well safety stand up their own regulators to do that we can't fly commercially. If you don't have your approval for regulators, we happen to be started in Europe with the most stringent regulatory in the world. He has the European aviation safety urgent.

Well they decided for this new breed of aircraft you can save 10 to the minus nine exactly the same type of safety standards that we get for commercial aircraft.

Paper you step into that you step into <unk> hundred 20, Yogh wing, 787% same level of safety. So we get into the nano safety right Menno like nanometers in semiconductors, you chasing one billionth of a chance.

And you have two demonstrated before you get them to fly that's what we're after so.

It's a beautiful but insight is pretty complex.

Kilometers of cable is electrical it's new technology innovation, so what he's really innovating there.

Most first and foremost the architecture.

You haven't seen an aircraft like that have you.

Oh, well that's innovation there is a reason why it becomes difficult to very difficult architectural unstable by nature. It's a canal. The wind. So we have to modernize a lot of Cfd you should know about there are spaces notebook modernization. That's the dynamics is not linear so you have to generate a huge amount of data just to know where you are and then you have to test it.

Slide to make sure that the.

Evidence that you accumulate with tons of data is matching your model, which has tons of data. That's already you smelled a use case for quality alright.

Well, but it's not only about that she can always predict now building it.

Operating because there will be hundreds there will be thousands of these machines around the world. So how do you make sure that they remain safe how do we know in which state. They are so tons of built in sensors, which I'll go into a community a little bit. So that's all Johnny now intuitively. The first hurdle is the regulation getting the approval of the regulators. So that is a journey and we started with <unk>.

Nigel in fact, we're already building machines. So you don't realize but there are.

A handful of companies like ours, which have already gone public we go public last year on NASDAQ and which are already bring these machines to world in the second half of the decade, they will be everywhere.

Yeah people say, what's that science fiction movies coming.

Is coming faster than you imagined everywhere everywhere around the world. If you check this industry, even told electrical vertical takeoff and landing Google at your seats everywhere, alright, so well one of them.

We tend to be one of the most equipped in terms of injuring workforce and experience et cetera, right and we are based in Europe , and a asbury for Oh and very committed to make this work. So we're internalization fees. So what it means we're solving problems we constantly solve problems while the good news where engineers, we love it.

And we have to demonstrate we have sold we have sold program, we have regulators and they tend to be very for them. That's a challenge. So how do we demonstrate that through evidence of how do commend them. How we basically are winning this race to safety.

Winning the race to safety each time to safety.

I spent some time in the Silicon Valley time to market time to volume type of cost here, we're going to go there after but getting to the market right. Now is a demonstration of time to save this learning fast. So I'll use case is somewhat different yeah. We will be an industry 4.0. In fact I spent two decades at Airbus Airbus will have a demonstration I think later this afternoon Airbus is a user of balance here.

And I was actually leading the first use case reserve Sherman and his team back you know a couple of years ago. So, yes, we're going to do acceleration of non quality analytics to see well could be the sources of liquidity I E non safety.

We're going to have this massive supply chains around the world we have already suppliers in Japan, we have suppliers in the U S. We are buying semiconductors are just flying laboratory. These machines, it's tons of electronics.

But digital twins or digital representation will building digital twin of the aircraft, but also be building digital twin of the predictions system wide predictions system why do we care, while we do care because there is a regulator that phase whether the predictions. He states itself is safe.

That's interesting so we have not been to demonstrate the machine itself, but we have to demonstrate that the waste produced is safe Register it doesn't change and each one has to be controlled is demanding.

And predictive maintenance here, we want to know everywhere. All these machines around the world as thousands of aircraft where they are is the door. Okay.

Battery pack, okay. He's a flight control computer Okay. We have tons of building test equipment that will just drop data direction with other users being aware of that that's that's just basically you know what this is a known today right, but we still want to do it from the beginning so the beauty of being a stop it will be in our ecosystem. We have hundreds of business applications already and we have to be cyber safe.

By the way I, just mentioned, but that that's a key element of safety cyber you don't want anybody to fly the aircraft instead of the pilot. So it will already doing that and that's the use case, it's almost normal now in the industry. What is different is actually we innovate faster. This race of type two safety.

Data driven it's absolutely that that reason.

Couple of examples we.

Have a flight tests, we have a demonstrator, which is flying in the social Spain, you check on our website and you'll see the beautiful machine because he does exist and flies to date, we have demonstrated this flight physics, while you works.

First thing in the world well.

Well, how do we beat that we wanted to basically fly and analyze every single flight is incremental we grew a bit faster we could try to tone. So in aerospace language. We are augmenting the flight domain right. We're augmenting the flight envelope, we're proving it safe as a flight envelope step by step every single flight, we have with streaming thousands.

<unk> sells and we just the data orange and you'll have to analyze it before getting to the same to the same a bit more so incremental the time to analyze using a bit of a volunteer.

Support with our team together with our team we basically drastically reduce the time factor of six faster learning, we could fly more often we could learn faster, it's all about learning faster than your technology.

Safety is about learning predictive knowing demonstrating we've done the same for batteries that's new.

<unk> has been there everywhere there is a lithium ion battery on a tree 50, there is one on 787.

Yeah. It does work, but it's not the primary source of power.

It doesn't happen today, so putting batteries as a primary source of power you have you done your Tesla car, but the things that you noticed with battery runs flat you just stop and you just exit the battery runs flat here going back to the use case I discussed before so.

We have to modernize it we have to demonstrate that we know how it's working that the flight control computer older sensors noticed state of health of the state of south of the aging any potential risk of thermal runaway, but you don't want to have a dominant new England's flying that's the bad news of course, we have to demonstrate we can contain it that's part of the regulator so too have to modernize all of that.

And with political we'd been able to past use office data accumulate billions and billions of data points on the sales behavior. So we can mobilize it accurately let's keep out overall journey. That's an example of how we do it faster right and of course changes. This very integrated system, you should change that I'm seeing in the design of the engine then you suddenly have.

Different aerodynamics Roes on the weeks, which means you have to change the structure. If you chose just virtual your change of shape you should change your safety says the Io than inflows again, so we can glean spiral developments, that's the beauty of aerospace. So all the changes are involving all our systems Pls provision system Cfd modeling. So how do we understand the change of changing the size of the engine.

Well, it's the data game, so innovating faster getting faster to the market means understanding faster getting data into insight we have ton of engineer, who have some of the best brains in the aerospace industry, we were able to recruit but they tend to transform data into data.

That's difficult. So we're trying at the management level to get these insights and make the right decisions to get the right product on the market you can safely so that self Johnny.

We don't do it alone. So we were a small company, but we're already partnering with.

Some of the biggest names in the industry why because well they want to be part of this revolution EV. Paul is the revolution that is coming in.

We're not the only ones. So we have different partners, you'll see them Honeywell recognize.

Flight control computer of Uniques modern Henry deals of experience. So yeah. It says we have a triple triple Dissimilarity flight control computer.

We'll figure out that means that basically it's redundant triple triple different route of computing software and hardware to make sure that all the signals are voted dominantly two against one four which means you know where you are.

Handling qualities and safety. So we couldn't develop it ourself, but we want to develop and that's a gain sharing data sharing tons of data save for name Venza, There's always a giant in Japan.

Supplier of electric engines to all the Toyota calls so they decided hey, they fell in love with a concept you know they decided to bring to us a marvel of technology of Super integrated.

Electric motor in fact, we have 30 of them on the aircraft and delivery performance, which is just an unbelievable 3.7 kilogram Hadrian 10 kilowatt go do the mathematics and cold beverages. This place Youll see victoza. Both so all of that has to be developed fast.

So time to safety means tons of data.

Sure Louise just few players at the early stage of course, we will share later at the initial stage and all the use cases that I've seen today are super interesting for US we will go there and to and from supplier to customer in fact, as we did with Airbus understanding that if you know your quality landscape is predominantly the biggest headache, we have to solve every single component predictions.

Systems stabilized everywhere.

So you can tug at the rates that we will do that but first and foremost and what should be different from what we have seen. This morning is this innovation faster through data.

Is it quite interesting journey so thank.

Thank you. Thank you very much for this opportunity happy to discuss there.

No.

Please welcome Chief Information Officer at food, Yeah, I haven't got out.

[music] App.

Hello.

American Gerdau ended the CIO of phobia, so been very happy being with you today.

I will try to tell you a bit more about their data journey for a tier one.

In the automotive business, but before turning the speaking about data we'd like to give you a few words about what his 12 year because probably.

Most of you don't know what is for yes. So basically the the former name was for VR for SCR and now we are we are.

Thanks to the acquisition of 80 plus percent of Hello, Oh, we have a new name, which is for via <unk> and we are busy clear tier one in the automotive business.

We have a let's say.

Big customer and of course, Alexandre BMW is one of them.

We have says more than 300 sites are one the 50000 employees 35000 engineers.

Let's say lots of R&D centers. So you can see the figure and obviously with all of that.

We are creating lots of data.

The vision of this patented is that our approach.

Let's say with the CIO is which is.

Sometimes a bit different than some of your colleagues. So definitely our CIO role is changing drastically I take some example of those changes.

We are in a world where the.

Architecture with a single Big ERP.

Able to deliver everything is no longer possible it will require much more flexibility much more.

Agility.

Second point, we need to to highlight is the fact that we and this is this has been already addressed this morning by some colleagues we are no more dealing only with internal data. We are dealing with an extended company model and we are for sure to take into account data from suppliers.

Customers partners et cetera, and this will become more and more of a case. This is absolutely clear.

The point as well and this is the view is that thanks to all those new system all the Digitization the way we address the it budget is a bit more mature for sure. We are still fighting with cost we are in the automotive business.

But all in all we speak much much more about value creation and this is very interesting for all of us.

Another very important topic is the fact that no.

A single team will never be in a position to create all the value which is needed in this.

This is clearly we are entering in a world of what I call that a democratization and.

Let's say a team of expert developing report developing analytics. This is over for sugar will still need that but we need much much more than this.

And thanks to the fact due to the fact that everybody will use those tools for sure. The user experience is more than ever important but this is a kind of abuse basically to summarize we are in a situation where it is moving from the kind of support function role to a real business partner role.

And this is really very exciting for all of us for sure.

I'll, let jump in the data.

Is that a value acceleration program offer favia.

Stripped off the first one being what we call the hardware digital productivity. So basically this is all linked to automation what is linked automation HGV robots et cetera.

Including the connectivity.

The second one being what we call automated decision, making this is we put inside their older manufacturing execution system or the shop floor tools digitalization at the shop floor level.

Cockpit near whatever et cetera, and the last one and this is the one will highlight a bit more today is the what we call the data driven business productivity. So this is basically all the value. We can create so was the data collection and the older Let's say.

Usage of data that we can leverage and so basically we have those three pillars.

Sorry for this but this slide I will go very fast on it but the physic I just wanted to show you the architecture, because I was explaining that the architecture is changing.

And basically this is the four via the force Yagur for Avia.

Landscape. So on the on the left side you have the what we call Central data Center basically all the standard tool. We all of US are thought out E. F. P. P. Epidemics that there are this is still on Prem we are moving more and more to a wealth of cloud application and this is already part of it.

The model our modularity I was highlighting so basically we decrease the size of the core system in order to lever as plenty of very let's say more easy to use tools around fast tool whatever the tools are.

And we have as well in what we call the distributed it which is very important in a company, where we have 200 5300 plants. Obviously, we have lots of mes manufacturing mass manufacturing execution solution at the level of the plant. So basically we have plenty of different sort of shy.

<unk>.

Already so for this in order to leverage all of that we need the data platform obviously.

Historically, we had already the business intelligence Morris everybody is it we were mainly project seemed to be honest out of this business into data report out of Asap and this is this was absolutely not enough. This is not enough anymore. That's why we decided to move to off the big data approach.

In order to two.

To make sure that we are able to collect all the data come in from all those different system plus by the way some from the external data.

That is from external databases and the advantage. The reason why we took voluntary as the global integration because we are able to not only to collect the data, but as we're to prepare those data to transform those data to create the famous ontology in order to make sure that we jump into the democratization. So this is bill.

Basically.

The architecture, we've put in place we made that decision a bit less than two years ago to move to do we started with volunteer a bit less than two years ago.

Then what where we are today after let's say.

2020, plus month, so I will not detail of that for sure but you see that we are already 35 sources connected which is quite a long time because the sources can be bigger. If you for instance is one sources appear M is another sources. So now basically I would like to.

Finish with the.

The benefit.

Where we are after dose 20 plus months of lesser.

Experience with Palo Alto, which is clear is that now we have a full data integration.

Across an expanded company because we user for the automotive business for instance, everybody knows.

It shows that are very well, we have all the forecasts and so on for sure all of that is integrated what's important for US is the world deployment once more developing use case is quite is quite easy.

Is really develop use cases deployed those use case within 300 sites is another challenge and this is where we are pushing.

Pushing what we're pushing for basically after let's say several months let's.

Let's say less than six months, we were already able to deploy some use case within the 300, plus we are consuming lots of raw material.

And this is not needed to consume more than expected, it's even it's a pure waste of money and it's not good for our customer where if we consume too much too much material. We're just creating parts, which are too heavy does not at all what our customer wants when we need to be at the really right level, which is very challenging and.

For sure for that kind of use case Bronco is very useful but it's just an example, we're plenty of use cases and purchase environment and different domain of the company, which makes.

The topic very interesting.

Now for should we continue today, we have a 100 concurrent builders. So many in that 100 guys out of the IP organization are developing use cases, which is completely new before this approach everything was developed.

By my team internally and for sure we were always a bottleneck for those business intelligence.

Report this is not over we are spreading that all over the company and then in the journey is continuing us or we have 40 curious used case, which are deployed right. Now 700 user argues in this daily.

Obviously, we will continue and then we are feeding the pie, which is very important is to make sure that we are generating new use cases on a permanent basis to continue the savings.

So to conclude our where we are so we consider and this is recognized by the business that we have made lots of savings with this base.

Basically if you remember my triple off of the digital transformation, we have the automation the I would say the mes plus and the data basically we can consider that almost 50% of the savings are generated.

Through data.

20% through the Mes bought in 30% of the automation, which is a JV or and so on so 50% of the savings are created.

Thanks to this data use those that are use cases. This is very very important.

We bought her law several months ago, which is kind of big group for us and obviously, we want to create plenty of synergy and we will not create the synergy by replacing all the back office ERP into silicon.

We will do that for sure we will harmonize that but it will take years to do so that's why we have decided to jump immediately with parents here on her on the hair loss side as well in order to say, okay with the current backbone will collect all the data and will generate use cases, new either new use cases, or we will really use the use case.

They use case, we are already with Infor was enforced in order to create immediately that synergy and not waiting for the global organization.

That's it for the journey. Thank you for your attention.

[music].