Power Probe (LSE:PWR) — Half Year Results

0:00 Good afternoon, and welcome to the POWER PROBE PLC Half Results Investor Presentation. Simply type in your questions and press send. Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO, Cheema Garcia. Good afternoon. Afternoon. Morning from here, Charlotte, North Carolina. I'm Chairman Garcia, the CEO of POWER PROBE. Yes. Fabio Medina, CFO of POWER PROBE. Chairman and I here, in the Charlotte, North Carolina facility in The United States. And Tom Marsh, group corporate development and EMEA regional director, based in London.

0:52 Cool. Thank you. Let me introduce a little bit of POWER PROBE on our history. POWER PROBE, a brand of technology company that started back in 1992 in Orange County, California, developing the first and unique single hand tool to perform automotive electrical diagnosis, helping mechanics to locate problems and fix them in the most efficient way and keeping that philosophy along the time, becoming an essential tool for mechanic nowadays. We did this along the time since 1992 in different moments, but I would like to highlight a little bit some of them that could be, you know, relevant to understand where we are nowadays. In 1992, after the company was established, Jeff Wissenham, the founder, ran the company as a family company family owned company till 2016 when we developed a joint vendor with another company that was specialized in manufacturing, finishing in final acquisition in 2020.

1:59 I joined the company in 2018 during that process, and since 2020, managing director, and after 2024, full time CEO of POWER PROBE. In April 22, we'll reallocate our company from California to North Carolina, looking for a place that is supporting the growth of the company, the way to implement manufacturing back in The USA as we had at the beginning of the times when we were in California in late '90s. In 2024, fully demerged from the group of companies, NGL, and operating independently.

2:44 In December 2025, IPO in the AIM. And nowadays, we are in the investment phase here in The U. S. Double up in the R and D and the production plan. Just giving you quick understanding about this process, we went through all this timing and milestone, always looking for escalating our business that is already profitable and a brand that is well recognized in the market and a market that is growing due to the megatrends that we have. And the reason for being listed in the I'm in the London Stock Exchange is due to the size of the company, the adequate, let me say, stock market that is giving us visibility globally for U. S. Companies and for the technology and the market that we are operating.

3:36 If we move into the next slide, I can explain a little bit more with numbers what POWER PROBE is. POWER PROBE is recognized as the as the hoover of the automotive electrical diagnosis for professional mechanics. We have more than thirty years with 140 products in our catalog. In 2025, we closed with US39.4 million dollars double up in around 23% of EBITDA margin with US9 million US dollar. Operating in three different areas, that is The US, Europe, and UK. We are recognized by the mechanics like the the the go to brand, but at the same time in the industry with multiple awards, where this giving us a very strong position in the market to keep developing technologies.

4:25 Those technologies are backed by a strong IP with more than 90 patents and design patent, not only in The US covering different territories like The UK, European one and some areas in the Far East where it's quite common finding, you know, copies of our product. We are introducing product yearly. At this moment, this year, we introduced seven new product. In average, we launched around 10 new products every year. For this year, we are planning to launch 15. That patent and new product introduction is helping us to double up on strategy with a multichannel distribution network covering the most important distribution network, including the well known and popular mobile distribution with companies like Snap on, Stanley Black and Decker, Mac Tools, etcetera. We have a very strong commercial policy and MAP pricing that is giving us the chance to develop another strong barrier to enter and providing a very strong pricing power for high margin company like POWER PROBE PIS.

5:36 In terms of our growth drivers, we're going to be taking you guys through all of them. But basically, we have a very strong new product introduction based in innovation, new market, including the aftermarket that we are operating and the car manufacturers and dealership, such as new territories like the European one and The UK that is the second largest market of the Western world. At the same time, that we'll be able to develop a new production center that will giving us the chance to dual source our existing one, adding the made in USA to a LOCK brand, POWER PROBE, that is the top of mind for The US mechanical master technicians.

6:22 If we have a look into our technologies, I would like to highlight to highlight that our philosophy since the origin is the one that is powering up our new product introduction today. So we are simplifying automotive diagnosis. We are developing a special specialized tools for mechanics to perform in the most efficient way in automotive electrical diagnosis. They are saving time. They are fixing more cars per day, making more money at the end of the day. This is what is really, you know, changing the approach in terms of the tool for the mechanics and why the mechanics choose POWER PROBE for every single, you know, that they need to do in the electrical system.

7:09 We have that philosophy into the electrical circuit props that we have at the very beginning, including the open short circuit finder that wirelessly can locate, you know, a wire that is broken open without disassemble any part in the car or even the new parasitic brain technology that you have in the center of the slide in the screen. That is a complete disruptive and fully protected, with a strong IP, technology, giving us the chance to to locate very quickly if the car is having any parasitic drain in the battery system and which circuit is having that problem. This is nowadays one of the most challenging problems that the mechanics are facing due to the technology that the car manufacturers start putting into the car five to eight years ago. And nowadays, it's complexifying completely, you know, what the car has in terms of, you know, circuitry.

8:11 In the new, let me say, technologies for the electrical vehicles, we have a complete new product range that is adding new feature to our products that is the safety. Now the mechanics can perform very quick, very efficient, very accurate automotive electrical diagnosis, including in the electrical vehicles, but more than that, can do it in the safest way possible, following the standards that are mandated by the car manufacturers and making sure that they don't have any risk for the tool or any risk for themselves. Moving into the next slide, I would like to give you some update about our market. We are operating in the automotive electrical testing market. That is a market that basically growing with a CAGR of 6% to 7%, no matter if you are checking The U.

9:01 S. Market or the global market or the European market. That is due to three main megatrends. We have more cars in on the streets. The cars are being aged with an average around twelve years per car. And all those cars are having more and more technology. What is increasing as well the knowledge and the time that is required, increasing, consequently, the repair expenditure that we have. And POWER PROBE is operated in the center of this mechanic of this market, being recognized by mechanics like the go to brand. So we are perfectly positioned with the new product introduction to take advantage of every sin every single new need that the mechanic has in this growing market.

9:52 If we move into the next slide, I will give you some color about why POWER PROBE is very successful, not only in the new product introduction with disruptive technology in the way that we're doing this, and we're going to the market. POWER PROBE has developed since, 2018, a very strong distribution network covering all the different professional channel with a commercial policy that is giving them the protection to avoid with the MAP pricing in place being affected by any other, channels that could be draining their margin. That is given to POWER PRO with a unique technology protected by IP and a very strong brand recognized in the market with this distribution model, a good pricing power driving high margins for POWER PROBE and the rest of the distributors that we are partnering with. It's very important to understand that in 2025, 86% of the total revenue is POWER PROBE branded product since only 14% is private brand, which means that POWER PROBE is capturing most of this innovation into their brand going forward. And let me say companies like Snap on Mac Tools, Cornwall Mac Tools are taking on their tracks on their mobiles, their POWER PRO branded products such on some

11:26 of them their own brands. Just a quick minute in the mobiles. Mobile is a very unique distribution model. It's very popular in The US and growing fast in in UK and Northern Europe area. This is not a delivery track. It's a track that is driven by a mechanic with weekly routes that is having inventory on the go, that is facing that is meeting face to face the mechanics explaining the main benefits, giving them some payment terms and some service that is developed in a very sticky relationship. Being in the in into the mobile's distribution network, POWER PROBE is able to educate and spread with more than 8,000 boots on the ground along all across all the different territories, the new technologies.

12:17 Let's have a look now into the growth drivers that we have going forward. As we explained before, before taking you guys one after one, the new product introduction in the existing markets and new markets will be one of the main drivers. But at the same time, you know, new markets like the car manufacturers and dealership and the expansion in new territories with existing technologies and the new one, especially in the European area. At the same time that we are capturing the main in USA with one new production plan here in The US that will accelerate the new product introduction. If we have a look into the next slide, I can give you some color about the recent expansion that we have from our established core and how POWER PROBE was developed in all the opportunities with the new product introductions into the adjacent product categories.

13:16 POWER PROBE that developed the name of the category power circuit props with the company name is now leading other categories like cable tracers and the recently new category definer parasitic drain testers. This is due to the innovation the way that POWER PROBE is developing tools to fulfill the mechanics need. Recently, in 2026, as expected, as planned, as we explained at the end of twenty twenty five, we launched the new POWER FLOW technology that is providing, you know, is providing to the power circuit profitability to check the integrity and the quality of the circuitry even if they are, you know, having corrosion or some springs that could be, you know, broken.

14:06 Besides this, we introduced new products like the multimeters category and moving into the electrical vehicle testing new tested before the end of this year. That will, you know, generate the 15 new product that we'll be introducing before the end of this year. In terms of the growth drivers into the next slide, we keep developing the programs and the tools that we have into the car manufacturers. 2025 was closed with Ford, Hyundai, Honda and Toyota with POWER PROBE products in their programs. This year, we add GM and all the Stellantis brands into that. And the all related with the car manufacturer and dealership that represent in U. S. Around 30% of the total market and in Europe around 40% will be completed in 2026, starting ramping up during 2027.

15:07 We are currently developing technologies that are being requested by some of them. So we have a very good info visibility about the opportunity and the way to diversify our existing product portfolio revenue in the aftermarket into a new market segment in The US and in the new territories starting in 2027. As as as planned as well, we are transitioning from the our legacy private brands into a specialized high end, high priced new technologies, including some of them that are for Snap on, Mac tools, and some other mobile distributors. That is giving us as well strategic migration into a technology that is quite unique and is giving us the chance to move low margin legacy accounts into new ones that will be in line with the general margin that the POWER PROBE has in our guidance in the in the analyst report. Additionally to that, we're responding with some new markets like marine, public beach, military fleets, educational with the POWER PROBE technology covering the markets where we have a strong penetration like The US and exploring the new markets like the like The UK one. And now just talking about UK, I would like to hand over

16:37 to Tom to give you a little bit more color about how successful we have been in our initiatives spanning POWER PROBE technology into the European territory. Tom? Thanks, Camma. So the most significant near term opportunity for us is accelerating our grief our growth in The UK and European market. We've been present in the region over recent years, and then now we're really well positioned with the infrastructure we have in place to build on that foundation. There's some key similarities between The US and UK and European markets, including the presence of mobile tool distributors such as Snap on and Mac tool Mac tools that Chama mentioned a little bit earlier. We've got global agreements in place with those names as well as other important wholesale distributors, which means they're able to leverage those existing relationships into the broader UK and European market.

17:35 Customer engagement this year has been really strong. The brand is extremely well known in these markets and trusted amongst the technician community. And this feedback has been consistent across the the key trade shows we've attended this year. For example, Auto Mechanica in Frankfurt two weeks ago. We see big opportunities to leverage key parts of The US model into The UK and Europe, including entering to the OEM market, for example. And we've recently opened conversations in that market segment specifically. On a group basis, we are completely aligned and launch all new products globally, meaning customers in The UK and in Europe, and then users get their hands on all our new products at the same time as their counterparts in The US market.

18:27 And I think this will be six seen in the success of the recent POWER PROBE launch. And then looking forward, the aim is to develop our distribution network across Europe further, continue to build our team and capabilities as we're doing on a global basis as described by Chairman of States, and then capitalize on the significant opportunity that we believe is available in The UK and European market. Fabio? Thanks, Tom. So related to our capacity in our new Made in USA project, to remind you and existing shareholders, with the use of proceeds from the IPO, we had dedicated $7,600,000 to a phased CapEx plan.

19:15 That plan is well underway. This this project is a dual source project, right, dedicated to The US market where we're expanding the facility here in Charlotte, North Carolina for The US base, and we're gonna continue to resource products into the into the European market from the current manufacturer in Taiwan. Well, additionally, for some of the SKUs, we're also gonna continue to resource it to The United States. This project has given us a cap cap capacity and capability for the additional SKUs, which equivalent to 10 different product lines. And it everything is up to plan. Right? The facility has been fully fitted. Architectural designs have have been completed as well. This will actually speed up our go to market on the product development as well.

20:05 We've we've already hired us off stage one, industrial engineer, hardware engineers, electronics engineers. Our HR department is fully dedicated to hiring direct and indirect labor within the next couple months. And our plan is still in place. We're still making the pilot run and the, first batch of Made in USA products by the end of twenty twenty twenty twenty six. Additionally, what this project would generate for us, right, will shorten our supply chain, will give give us more velocity to our overall working capital. Currently, you know, from ordering to putting the the product in the market, it's about six months. We're hoping that this project will give us a six sixty day turnover to our customer for the selected products, which are mostly gonna be related to innovation and new products in the market in order to shorten the supply to to our US customers.

21:02 Tom, next slide, please. Thank you. So to cover our h one results, you can see on the left side of the chart, there is a a decline year over year for the first half, and it's all related to the new product introductions. As Shima had mentioned, last year, we had a lot of innovation in the first half of the year related to parasitic drain. Right? Those those products were very successful and continue to be successful in the pipeline. Now as also had mentioned, we have the POWER PROBE being launched. It was launched in the third week of June, so we're expecting that that trend to recover as far as the product innovation. The good the good news there is that the net revenue has actually sustained very well for the legacy POWER PRO called p p three. So, you know, any concerns of product cannibalization has not happened, from the parasitic drain technology. So the PP three has been very successful in the first half of the year, sustaining trends as we, as we had expected.

22:04 Gross margin has a has had a significant improvement versus last year. We had a we have a bridge that we're gonna cover, in the next couple of slides. So there is a couple shifts there, not only pricing that was introduced in the market as a correction from a cost increase that we had in 2024 of 10 to 15% on the legacy products, p p three, for example, the power secret probes, but also the shift in the product mix from the private brands, legacy products into a more specialized private brand products, which is recovering the margin significantly. Going forward, our guidance is between 4546% gross margin percentage, increasing steadily as we build our factory here and as we bring more pricing opportunity to The US market with the main USA product.

22:56 Adjusted EBITDA, there's also a bridge in the next couple of slides that we're gonna be covering. There's a decline year over year, which is mostly related to PLC costs that we didn't incur last year since we went to IPO in December 2025 and additional hires that occurred in the half of twenty twenty five in order to support the growth of the business, support the the support of the overall top management of the company for this next phase of growth. And the same thing follows with adjusted EBITDA margin. So a slight decline from the full year '25, and that margin is gonna continue to increase as we have more volumes, in in POWER PROBE. In 2025, the margin is slightly lower than 2024 due to the private private brand mix that also translates into the gross margin.

23:47 Tom, next slide, please. Right. So this is the bridge weighted average bridge, on the gross margin jumping from 40.8 to 50.4 as we had mentioned before, you know, when we were doing the the full year results. Our pricing, has has greatly impacted positively our overall margin. And you have to assume the first bucket and the last bucket to understand the pricing because while the pricing is, improving in the legacy p p three products, it's also, having a positive impact on the shift from the legacy private brands, Harbor Freight in Milwaukee, for example, into more specialized products, snap on and. So that that, results in a 7.6% improvement overall margin. And then we also have the, 2% improvement from the, on branded products related to the product innovation.

24:42 So next slide, please. Here's the bridge on the overall, adjusted EBITDA percentage drop that I had mentioned previously. So as you can see, the gross margin's improving 9.6%. The volume absorption, which we expect to recover on the second half of the year, and we're already seeing positive trends, should be offset on that 3.8% decline year over year on the first half. The new hires from 2025, impacted 7.2% on a year over year basis for the for the first half, and then the PLC cost, 3.1%. Next slide, please, Tom. Well, thank you very much, Fabio. Well, let me close this, initial presentation with just, you know, summarizing what we were doing.

25:36 Basically, this first half of the year, we were putting in place what we said that we're gonna do. So we are kicking all the different check boxes in terms of new product introduction. We introduced seven new product, including the POWER PROBE technology covering globally all the different territories. We keep expanding the OEM and car manufacturers segment of the market, including, you know, new groups like the Stellantis Group and new product into the existing ones, planning to complete the process in the second half of the year beginning 2027 and giving us the chance to start growing up this segment of the market going forward. At the same time, we unlock the first contact for the European area for car manufacturers, meaning that with the territory in UK that is growing fast, as Tom explained before, is giving us well, you know, the next phase of growth in place that is related with the segment.

26:43 And building the capability of the new factory, implementing the SAP in place as well as, you know, plan in the agreement that we had before and the old investments that they have to start the manufacturing that dual service. This is a story of success in a profitable, you know, prior company that is opening the next phase of growth, scaling scaling a profitable business, a successful story with a good track record. The new factory will give us the chance to speed up the time to market, accelerating the new product introduction, giving us the chance to shorten the supply chain. In the meantime, that we have the backup of the existing supply chain to the new territories, combining the best of both of them to keep powering up this this opportunity.

27:37 That's why from the management from POWER PROBE, we believe that this is a great opportunity to invest in a company that is well known, is a top of mind, is the Hoover of the automotive electrical diagnosis, but position it perfectly in a market that is growing, growing with a very strong megatrends with more cars, complex car, and h car in the market. That's why we believe that POWER PROBE is ready to grow with you guys in in this new opportunity. Thank you very much for your time. That's great. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the right hand corner of your screen. I would like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via investor dashboard.

28:34 Tom, if I may now hand back to you to chair the q and a, and I'll pick up from you at the end. Thank you. Super. Thanks so much. We had a number of pre submitted questions, so thanks so much for sending those in advance. I'll group them together as best as I can as they do cover specific themes. So I think we can start with The US manufacturing. So I have a number of questions on the transition away from the NGL supply source towards US manufacturing and the timeline for the Charlotte production ramp up. Fabio, maybe you can kick off with providing some color on that. So transition away from current supply and the ramp up of the Charlotte facility.

29:30 Yeah. So on on the short term, we still expect the supply chain to to be relatively similar. Right? Because we're gonna start here in the shop facility with the assembly lines first. So we're still gonna need the the unassembled projects to products to to put into the assembly. We're going to progressively make other steps of the products products along the way as we become more and more efficient with assembly lines. Right? The surface mount technology is the next next in place. So we expect the supply from MGO2 to continue to be pretty pretty similar. Our first batch, as I mentioned, the pilot and the first batch will be out by December 2026, so by the by the end of this year, and then we're gonna ramp up more production in 2027 throughout 2027.

30:22 I think the target right now is about three different SKUs focused on innovation, so focused on the new products that we're trying to put in the market for The US customers, and then we'll also transition that into the European market. Did I miss anything there, Tom? I think No. No. I think I think that's that's comprehensive, Fabio. Guess the next few questions are around gross margin. Again, probably one for you here, Fabio, to start with. But can you give some color as to what gross margin might look like in the short to medium term and how the Charlotte facility will impact group margins. Yep. Yep.

31:08 So for for let's let's talk, right, distribution. Our our overall distribution target is between 4546%. It's been higher in the first half of the year. That gives us opportunity to put more products in the market through through promotion activities and also diversify through promotional kits, through different bundles that we can offer to market and bring more and more of the brand awareness, into The US and European market. So there's there's a lot of opportunity there with the current margins that we're holding. For The US facility, as we guided before, for the new manufacturing. Our target is to still remain the same margin as we bring efficiencies to the site. A good a good point on that is that we have the we already have the teams in place. Right? So we're leveraging our current HR, our current logistics, our current finance and accounting team to also operate the, the the manufacturing facility. So we really don't see any EBITDA margin erosion at the moment because we're focusing mostly on the direct and indirect labor with with a couple supporting roles, in order to manage plant efficiencies.

32:18 Additionally, we should be gaining some pricing opportunities that as I had mentioned, with the major industry product. Right? It's it should be a a special batch per se, into The United States, throughout 2026 and 2027 as we put those in the market. Great. Thanks, Fabio. The next question we have is a specific one, and it's a question about the specific EBITDA and adjusted EPS figures and that are tied to the threshold and maximum out of outcomes. I can probably take that one. The the reference here is to the performance share plan awards that were granted at IPO. Those awards have a three year vesting period, so vest in 2029 following the publication of the f y twenty eight results.

33:12 So at that point in time, the specific conditions will be disclosed to the market. In terms of the principles surrounding the performance share plan, I think what we can say is that those targets were constructed such that the only outperformance is rewarded at the maximum level. And then at threshold levels, those are tied to growth over the numbers currently in the market for f y twenty seven. So I think that's as much color as we can we can we can give in terms of the principles of those LTIP awards until the point in time those are disclosed after vesting. Then the next question I'll continue with was a question on Nanitian.

34:01 The question is Nanitian is now fully operational and at what revenue level that operation turns profitable? I'll start and answer that one myself as well. I think what I can say is sales momentum this year has been really strong. It's $1,800,000 in f y twenty five as a whole. We were through that level in August this year. So we've already exceeded the f y twenty five results in the in the region. In time, we expect the overall contribution of UK and EMEA to to to grow accordingly at a group level. And likewise, Nanietin is already profitable now given the existing overhead base we have in place as we scale, as we grow, as we add team members, the level of profit contribution from UK and EMEA again will will grow accordingly in time.

35:08 I will then move on, I think, probably a question here for. So there's a a related pair of questions concerning diversification. One asks what international success outside The US could look like in the medium term, and the other asks about reducing customer concentration as OEM directs and international channels grow. So, Cham, can you give some color on those two points? So what does success look like internationally in the medium term? And then what about customer concentration as and and how you see that develop in in the medium term?

35:57 Yes. Thank you, Tom. Well, I think that the the strategy that we have as a growing grow the growth drivers that we have in the company are basically, you know, responding to the customer concentration due to the diversification that we are doing in especially in international markets or new market segments. But anyway, we are we are pretty confident anyway about the customer concentration. We don't believe that we have, you know, a strong customer concentration. Actually, the main reason for that is because of the position that we have in the negotiation with the distribution channels that we have and the real decision maker and the way that the market is, you know or the behavior of the market and the mechanic is, you know, selecting the tool and paying for the tool that they are looking for.

36:50 And we are perfectly positioned in that decision making process. So no matter today or or in few years with the new generation of the mechanics, we will be able to cover different ways. Traditional way with mobiles or WD, wholesalers, or the new ones that could be used in marketplace, more digital ways to get the tools. So our tools will be available in different channels. That's why we are not, let me say, concerned about any kind of concentration in terms of customers for product or technology. But the diversification of new product introduction and new technologies is giving us the chance to diversify even more and keep growing the business, as I explained before. In the existing markets with the car manufacturer and dealership, we'll be adding an additional 30 to 40% market share.

37:40 That will give us the chance to diversify from the aftermarket. And in the export markets, that let me say that the European market, in terms of market size, is following The US market. The largest is the market, but closely related is the European one with similar structure between aftermarket and car manufacturer and dealership OEM market will give us the chance to keep expanding into the new territories with the same technologies. Just bear in mind that our products are not tied by any car brand, car manufacturer or technology. Our product our products can be used in any car with all the electrical system. No problem at all relating with the territory or the mechanic that is using.

38:29 And the final conclusion will be that the diversification will come due to the growth drivers. And in terms of growth in due course, where the maturity of both markets will be at the same level, Europe should be at the same level that The US one in in, you know, in due course. Thanks, Continuing, I think, on the theme of of looking further ahead in in the medium term and and our growth. You have a question asking about what level of operating cost base is required to support growth and how EBITDA margins might evolve with that scale.

39:17 Fabio, can you can you give us some color on on that element, please? Yeah. I think I think we have some some favorable tailwinds there because our team is really structured to support a significant amount of growth for the next two to three years as as we've been planning as, you know, as as some of the analysts have have share or growth in the in the low single digits year over year going forward. Additionally, I think also, Tom, we expect, you know, gross margin to improve one percentage point moving forward in the following years because we're we're again, we're putting new product, made in USA product. We're we're having the the the IP on all all of our new products. So we have that price opportunity to put in the market. So we should see some recovery and continuous progress on the gross margin.

40:09 Additionally, that should follow with the bottom line adjusted EBITDA. As we as I mentioned, we already have the team set for growth. So, therefore, we should only see opportune additional opportunities, into the adjusted EBITDA margin and and progressive improvement. Thanks, Soya. On on the margin side, I'll just pick up on one specific question we've we've had coming on on margins around new products. So the question is, is there a level of new product contribution that you believe is sustainable? And are the recent launches achieving similar margins to the established POWER PROBE range? Well, I can I can take that, Javier? I think that since 2018, all the new product introduction pipeline that we had was proven by itself that we have, you know, in house the innovation resource to keep, you know, introducing product in existing categories, but even in new categories and in new technologies or new category defined as with the parasitic brain.

41:14 So I would say that this, really proved that it's sustainable, the new product introduction. We have an average of around 10 new products per per year. Considering the 90 panels that we have covering different territories and utility designs, I think that in my personal opinion, that is something that is helping us to support the price point. And if we consider the combination of the brand recognition, the IP, and the distribution model that we have, including the unique technology that we are putting in some of them, that is driving the pricing power that support those margins going forward. In terms of revenue, we have one internal KPI that I can share with you that is related with the new product revenue versus the total revenue of the POWER PROBE PWRONMENT products, and we're about 30%, 33, 34%, just being a little bit more specific.

42:19 In terms of our industry or the industry, you know, like where POWER PROBE operates, that percentage means that this is a very high innovative company with a very strong new product introduction. So I could say that we feel the management and the company feel confident having this driver, you know, helping the company support the growth and the revenue and the margins going forward. Thanks, Chama. I think we've got one more question unless there are any further questions from the audience. Probably one for for you, Chama. Looking forward, what do you think the biggest expected changes to the business will be over the next three to five years?

43:13 Well, I just say that in terms of the technology in the cards, I just say that, you know, one of the the the most prominent changes will be related with the auto autonomous driving technology. Nowadays, we are facing in all the meetings with the car manufacturers more and more investment from their end providing new features that includes the autonomous driving. That requires a very specific, you know, car maintenance, and, you know, the systems must be, you know, ready to be activated or to operate, you know, in a very accurate way, but will require more specific diagnosis and test into the cards. That is giving us a perfect opportunity to keep developing new product and new technologies, especially getting into the car manufacturer segment is the perfect position for us to capture that need at the very beginning, help them to solve their revert and maintenance and spread that afterwards in the aftermarket.

44:25 That is what we are believing as one of the most challenging thing. And in terms of distribution, could be related with the new technologies and the marketplaces. We are assisting nowadays to a change in terms of how the customers are, you know, trying to get the product using, you know, the quickest way possible, getting access to different platforms. And we are finding a very good opportunity with our partners in the different distribution channel to put our main difference versus the knock offs and copy cuts from the Far East territories, especially because our the mechanics, our customers needs training.

45:11 They have a problem, but they need to understand how to fix the problem. We are listening them, and we are offering them the training and the tool to fix that problem. That is something that is very difficult to copy even if you are replicating the same product in a lower price. And that's why we are collaborating with the main drivers of this market like Snap on, Macco, Mac Tools, etcetera, in training season, training our social media and all the training classes, webinars that we are providing to them is aligned with this new trend. That will be connected with their platform, trying to keep efficient logistic channels to support this demand. Those two are the main, in my opinion, changes that we'll be facing no matter if it's technology in the cars or if it's, you know, distribution channel.

46:03 That's great, Gemma Fabio. Tom, thank you for addressing all those questions for investors today. But, Gemma, before I redirect investors to provide you with their feedback, which is important to yourself and the company, could I please just ask you for a few closing comments? Well, I think that we we delivered what we were supposed to. The h one was a very strong and very good momentum for the company following after the IPO in December. All the different projects and the different growth drivers are working good, and the company is ready to keep scaling the business. Very good opportunity to invest in POWER PROBE, especially at this very moment. And we are really, you know, very glad to be here explaining or answering any question going forward. Thank you very much for your time. Fantastic.

46:54 Thank you once again for updating investors today. Could I please ask investors not to close this session as you know, I'll be automatically redirected to provide your feedback which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation, and good afternoon to you all.