Catenai (LSE:CTAI) — Klarian Update

0:00 Good morning, and welcome to the CATENAI PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to John Farthing. Good morning, sir. Good

0:30 morning, Lydia, and good morning, everyone, and thank you very much for joining us today. On behalf of CATENAI, I'd like to welcome both existing and prospective shareholders for the investor meets company presentation. Today, we're joined by Andrew Garner, Chairman of Clarion, who will be discussing the future of the business, the progress made over recent months and their plans for the next stage of Clarion's development. Andrew and his colleagues will guide you through a presentation outlining the strategy, commercial progress and market opportunity before opening the floor to a live Q and A. And with that, I'll hand over to Andrew. Hello. Good morning, everybody. Delighted to be with you this morning. And that is not just me. It's my dear colleagues, Gary Chandler.

1:17 I'll introduce him shortly to you, our managing director, and a distinguished nonexecutive director, one of two we have, but the other one is currently in Australia. Donnie, as you will see from the the presentational deck, hugely distinguished record in the

1:39 oil and gas, and if I may, generically in the pipeline industry. Now I've used the word pipeline. To most people, that seems dull. It isn't. Pipelines are the arterial network of the entire world. They carry strategic assets, the value of which is increasing by the day. That's oil, gas, and water. And please don't relegate water to third place because during your lifetime of all those assets that we have in the world, water is going to be undoubtedly, both strategically, economically, and socially, one of the most important assets.

2:26 And that infrastructure pipelines around the world, Donnie may correct me shortly, but I think we've got over 70,000,000 miles or kilometers of pipelines around the world. Some of which are older than I am. They're all different. They each and every one of them produces data of some kind, but you'd be amazed at the level of ignorance that applies to the pipeline industry in terms of what the data of what's going through those pipes and when something isn't going through there, you'd be staggered at the use to which that is not put. So much of that data that is produced by pipeline operators ends up metaphorically on a shelf.

3:14 Now the increasing value of what is going through pipelines and its importance to all of us, not just the owners of the pipelines, created an environment for us to come in here and start putting that data to good use. You'll see from the presentations that Gary and Donnie make that this is all about creating an environment whereby we can make those pipelines leaner, greener, and more profitable. And that's important to all of us. What we have done over the last three to four years is we have produced, and I'm very proud to say this, a fairly stellar team, not only of advisers on our board, such as Donnie and our other colleague David Banks, but also a glittering array of PhDs, scientists, and Gary here brings with him an astonishing career in a senior technical role, not least, and I think this matters a great deal to all of us, to Rolls Royce Aerospace.

4:24 So what we've done now is to bring together, as I close, artificial intelligence,

4:34 machine learning, and physics so that we can help pipeline operators optimize what they're doing. Flow, use of energy, anticipation of faults, the realignment of routes, all of these things. That has given rise to us having one good fortune, but secondly, the insight

5:07 as to how we approach this market. It's global. It dominated by major corporations, and I hope they'll forgive me for saying it. They all move relatively slowly, whether it's in petrochem or water. The roots, therefore, that we've been taking to market, I think, are gonna prove to be of enormous value. They are being represented in these various paradigms by leading contractors. Metaphorically, means that we become the intel inside of an approach to the market through accredited suppliers to that market. We've had the privilege recently of signing up non exclusive but vital global partnerships with representation in oil and gas, in water, and in geohazard.

6:06 All of this has given rise to the fact that during the next twelve months or so, we, as we will show you shortly, are scheduled to generate significant income, profitable margins, just as important from an investor standpoint to sustainable income over many years. Once we our technology becomes embedded in that pipeline infrastructure of the world, yes, we're gonna have to work hard to stay there, but it's gonna be very difficult for anybody to usurp our role in that paradigm. So with that said, it's with great pleasure I now hand you over to Gary, who is our managing director. Gary, good morning.

6:54 Yeah. Good morning, everybody. Just as a quick introduction on my part, and then I'll I'll I'll let Donnie introduce him himself and and and hand back over. So just yeah. Very quickly, my background is, as Andrew says, twenty five years at Rolls Royce. I was the chief of controls for the control systems that go on the the jet engines there. After Rolls Royce, I joined the an industrial AI startup, for eight years. So I've got FTSE ten experience. I've got startup experience. And then just over twelve months ago, I joined Clarion as as CTO and then just recently have have stepped up to managing director. So very, very good to meet you all.

7:40 And, Donnie, do you wanna just introduce yourself, and then I'll hand over to you? Yeah. Thank you, Gary, and, Andrew. Very quickly, ladies and gentlemen, I'm Donnie Ross. I have thirty years experience, most of this, in the petroleum industry. I worked with Schlumberger, and I am former president and and Schlumberger officer. And I'm I'm retired now, albeit working closely with Clarion for a number of years now on on on the background. He's not retired. Don't believe Not retired quite, but but, anyway, I think and the reason I'm here is that I'm gonna show you through this demonstration talk today is the novelty or the novel solution that we're gonna bring to this industry that have been around for a long time.

8:35 And I'm gonna explain to you why it's needed and why it's so valuable. And, of course, we're gonna be able to demonstrate the returns of, you know, applying Clariant solutions, and Gary will cover that towards the back end. And after that, we're we're happy to field field any questions after that.

8:59 Let me start giving you a little bit of color. I think Andrew talked about, you know, number of or miles of pipeline. I think it's roundabout, you know, 7,000,000 miles of major trunk lines, transmission lines across the world in terms of pipeline. There are also, the beginning of that pipeline, in the middle of that pipeline, and at the end of that pipeline or those trunk lines or trans transmission lines are some indications of processing, which means there's a gathering station. There is, you know, pumping stations. There's processing stations across that pipeline. And this creates a complex network, especially where you have not just one or two wells, but some fields have thousands of wells connected to them.

9:47 I'm mainly talking about the petroleum space, obviously, in in here. And I think this is where I can demonstrate very clearly a lot of value for our customers through Clarion. And some of the challenges we see here, you know, on a global basis across the world, and I've been involved in everything from upstream drilling, completing wells around the wellheads, the tieback systems through the pipeline back to early production facilities and processing and building everything in between. And what's absolutely critical is the information you need because it's not really a standard homogeneous play that is constant throughout the life of that well or that field. It changes every second, every day. And, of course, the nameplate performance of equipment degrades over time. So you start to have some element of of optimization and throughput requirements.

10:47 But much of the the assets across the world that we talk about, you know, six, seven thousand processing facilities across the world, 7,000,000 pipelines, it's legacy. There's our infrastructure in place, so twenty, thirty, 40 years old, and there's a severe lack of knowledge. And imagine everything is changing on a daily basis, and you don't have the insights or capability without spending a lot of money in order to understand what's actually happening in your process. You you you you kind of struggle on on a daily basis to manage throughput, capability, challenges. And, of course, number one on the risk register for our for the the leaseholders of these assets is an integrity breach.

11:34 So an environmental impact would have a serious impact on the country, on the operator, on the government given these pressures. So insights on intelligence, you know, ahead of time to manage that integrity is is super important. And this is why we see, you know, regulation and ESG pressures as as number one on the risk register. Of course, you look at operational blind spots, this is where, really, Clarion makes a a a an incredible opportunity for our customers. And effectively, if I had to measure from a gathering station, let's assume 20 or 30 wells, you know, tied into production, some of these wells start to water out.

12:20 I have a backlog, or I start to build back pressure in the system because there's too much water coming out of production facilities. I can't handle the throughput, but I need to understand, you know, where is this coming from. Well, Clariant can go in there with a science based approach using some of our virtual sensors, which can be pressure, temperature, volume, density, or even power generation when it comes to current across driving some of these pumps and and valving systems. So we drop these into the networks to really, you know, collaborate with the rest of their economic ecosystem, which is their SCADA system, their monitoring systems, whether they're analog, digital, and we're able to give them measurements that are relatively low cost in terms of solution, but absolutely critical to understand the decisions that you're gonna make going forward with a never changing environment.

13:21 So so this is where we call blind spots, and this is the space for for Clarion. And it's across the infrastructure, both upstream, midstream, downstream. We have opportunities for Clarion across the board here in in the petroleum industry. And, of course, the water. I mean, I've been talking about the water industry, and it's a seawater lift system, desalination, water storage. There's there's lots of opportunities in the space as well. And, really, the petroleum industry is crying out for some of these solutions. And what's unique here with Clarion is our ability to not just talk about virtual sensors, it's a science behind it. So there is some proprietary capability here that we keep generally tied up in house without going to IP. We don't wanna give this to the industry, but it allows us to to manage, you know, the five main measurement elements, you know, pressure, temperature, volume, density, and, of course, power as well.

14:17 One of the biggest challenges now, we run several fields or in my previous company. It was with Sommerger. It's the biggest service company in the world, but we also had some additional assets that we were running on the ground as as an operator. And some of the biggest challenges we had was unplanned shutdowns. For example, we had the floods which disrupted the the facilities in the pipeline or a breakage in the pipeline. We had intervention where there was hot taps or integrity breaches in

14:49 the system, and it caused unplanned shutdowns. So for days, weeks, or even months generating when you've got 30% of the country's production underneath you and you have an integrity breach and it shuts you down for, you know, several months, this is extremely costly at a at at a not just a corporation level, but obviously at a country level as well. So managing the the system intelligence is absolutely critical to understand, you know, any changes that's happening, any breaches that are happening ahead of time so you can go in there and manage this without untimely unplanned shutdowns. And, of course, throughput, everybody's worried about meeting production requirements, especially today. You can see what's happening around the world that would probably be 20 or 30 of their production knocked out on a global basis delivered from, you know, the BOE. So instead of a 100,000,000 barrels a day, you're probably down to 70,000,000 barrels a day. So there's a big chunk missing there. So everybody's trying to maximize production all of the time. So throughput is absolutely critical, and we will demonstrate perhaps on one of the case studies we're gonna show you today, you know, where Clarion fits and and the value that we can bring on efficiencies and throughput and, obviously, insights as well to make the right decisions.

16:11 And, of course, you have the climate impact across the board. We're talking the geohazards, external of the pipe by external of your infrastructure, landslides, seismic issues, or integrity breaches, of course, that we talked about on some of the case study. These are some of the the the the challenges. But what I want to really impress on on the audience here today is the severe lack of intelligence at the right time in a never changing environment means we need to have much more capability or insights to make the right decisions at the right time. And having Clarion that can deploy a science based and technological solution with a virtual sensor allows us to drive those decisions at every department level at the same time, and it's highly valuable.

17:00 Next slide, I think. And very quickly now, I'm gonna give you a level of the market. So back in 2024, I think I did the last update on a global marketing understanding. So both upstream spend, midstream spend, and processing through to export handoff effectively for the pipelines. Roughly, the overall market size is 1.2, 1,300,000,000,000 per year in terms of spend, capital CapEx and OpEx spend across the board. And what I'm showing you here in this pyramid is really the targeted market for Clarion that we're gonna drop into, and it's the digitization of that 1,200,000,000,000.

17:47 So how do we manage the digital insights across infrastructure? And the size of that market today is roughly $1,718,000,000,000, and it's gonna be one of the fastest growing spaces in the petroleum market. So roughly a CAGR of 25%. We we should expect 38 to 40,000,000,000 by 2033, which is not that far away, and that's showing you how fast it's gonna grow. But in essence here, you can see the bottom of the pyramid is pretty big for us by 2033. It's roughly, you know, 35 to 40,000,000,000. But, really, our focus area here is really in the second pyramid, which is the 5,000,000,000 spend. In that space alone, for Clarion, there's endless amounts of growth. And this, again, remember, this is just the petroleum industry.

18:35 You have the water industry after this, and you have external topology aspect and other unique areas that Clarion fits in the market. We might give you some of that color as well towards the end. Today, however, we're focused strategically in key areas where we know that we can make an immediate impact with the products and the services and the platforms that we have today. This range is 25 to 100,000,000, and these are through, you know, three strategic channel partners. One is in the petroleum industry, and it's the bellwether. It's the single biggest engineering company in the offshore industry space, and we have a partnership arrangement with them. And we are running several scopes of supply across the world now on on several opportunities.

19:21 And then we have the the water industry. So this is the four quadrants you can see here. I talked about the top left there, our channel partner in the petroleum space. We also have the bottom right hand quadrant. This is our we have a channel part partner here in the water space. So we have two key areas that we're developing strategically at the same time with petroleum space and the water industry. And, of course, then we have the the topology aspect in North America and Canada where regulation is extremely tight on number one, the risk register, which is breaches or potential breaches on infrastructure,

19:59 on piping, or in the process facilities. And, of course, we talked about the special applications here with the satellite based platform use with Clarion in the in ESG and in Europe and in The UK. So but these are four key areas that we feel that we're we're now established. We're growing, and we're delivering products and services into these spaces today. I

20:30 think somebody may ask around the business model. And, of course, you know, given that it's very much asset light type business we have within Clarion, it means we don't manufacture lot, but we do deliver products, which are, you know, sensors that are virtual in into into industry that that we apply. And, of course, it comes with that as one easy deployment. Scalability is capable. And, of course, how you manage the commercial model there is is open to either, you know, a SaaS type model or sub of your current revenue stream. It can be a volume sale in combination with a license with our platform embedded. We can do it on pro on prem.

21:16 We can do it within our own cloud space. We can manage it remotely. And, of course, the big price for us that creates really the stickiness. If you go from a land based application

21:27 that we've developed today, and you talk about it next with the DPA and Gary, you start to move this into the marine environment. What I mean in the marine environment is offshore. It could be platforms, networks, FPSOs, marine infrastructures, risers, tiebacks. But then, of course, you step out further again, and you go into subsea. Subsea is a is a pretty interesting space in terms of economics. It's probably a factor of 20 in terms of cost to do business as it is to onshore. So you can imagine the savings if we can apply the same technology we are today in the onshore, you know, petroleum or water business versus the marine environment. And this is where we're going with our our channel partners, ultimately. And we are we're gonna change the game in this space when it comes to measurements, scientific domain knowledge capability, and delivering outcomes that just are not possible today without spending an incredible amount of cost.

22:26 And we we should be able to derive a new value. So Clariant's name will be an industry name within the next two or three years for sure in this space.

22:38 And I think next slide, I think, Gary, and I think I'm gonna hand over to you at this point. Yeah. Sure. So, yeah, really, what I'm just gonna talk through is that we are we're already delivering value for the customers. The technology is is proven. We know it works. And the key thing is that we can actually show measurable customer value. Donnie mentioned BPA. That's the British pipeline agency. They're co owned by the likes of BP and Shell, and that's the network in The UK of pipelines that is used to move product from the ports where the the the the the oil, etcetera, lands.

23:24 And the key thing with the British pipeline agency is they actually deliver the jet fuel into Heathrow and Gatwick. So our technology is helping them keep those fuel deliveries on schedule. And, again, as as Tony said, that's obviously incredibly important to keep those national assets in terms of Heathrow and and Gatwick operating, especially in the current challenging times when when production is is down.

23:52 So what we can see is the headline figures are strong. You know, we can see average energy savings of, you know, nearly 20%. We can see peak savings up towards 70% on individual pump assets, And and that gives us potential monthly savings of between 5 and £10,000 per per optimized pump. So so that's quite sizable. The good thing for that is that for a customer, that means that payback can come quite quickly, often less than than twelve months. And for investors, the important point here is that the value case is measurable. So we can point directly to energy saved, cost avoided, efficiency improved, or even, you know, any of the operational decisions that we make recommendations on. We we make them better than it's possible to make with with humans trying to pull all of that disparate data together.

24:52 But it's the fact that we can point to that measurable value case. That's what makes the proposition commercially compelling.

25:01 I'm just gonna talk very briefly about the the the technology itself. I've mentioned virtual sensors a couple of times, and that's really what our sort of founding tech technology is, these virtual sensors that are driven by AI. Now you hear a lot of AI in industrial markets, but the challenge with them is they're either too generic or they are too black box. And, of course, our customers, operators of critical infrastructure, they cannot simply accept a black box answer. They need to understand why the system is making a recommendation, and they need confidence that the software understands the asset.

25:53 Clarion's approach then is is different because we combine AI with physics, with asset knowledge, and with operational context. So we can give the operators the the explainability that that that they are looking for in the AI, and we can give them the confidence and we can build their trust to follow the recommendations and and, you know, they're they they stay away from hallucinations or any of the things that we might hear about in in the press. So, really, in simple terms, we are not just looking for patterns and data. That's what the majority of AI is doing. Our software, we're actually building, understands how infrastructure behaves, and that is what allows us to create the virtual sensors.

26:47 To Donny's example, we can actually place these virtual sensors pretty much anywhere in a complex system. So if you imagine that we wanted to place a sensor a 100 kilometers along a buried undersea pipeline, that would simply be too disruptive, too costly, too dangerous to deploy physical sensors.

27:13 And and so what our advantage with the virtual sensors is we can give, operators that view of areas where it's dark at the moment, and and that allows us to give them a more complete view of what's happening across their network than than they could ever have otherwise. So key thing is Clarion Advantage. It's not just AI. It's explainable industrial AI. It's built around our knowledge of real assets, real operations, and real commercial outcomes. That's what we are that's what we're absolutely focused on. Just to close, hopefully, what we've we've we've given you a flavor for is that we have positioned Clarion at the center of what we believe is a major industrial AI opportunity.

28:05 The market's large. The customer need is urgent. Our product platform is now substantially in place. We've got operational deployments, and key is that partnerships are forming that will take us to market, as as Andrew said, and the sort of Intel Inside model if you if you like. And then the commercial model itself is designed to scale through recurring software revenue. We're not off doing custom projects every time. This is a product that's designed to land and and and scale. We're showing a practical industrial software business. We've got live proof points. We've got a credible team. We've got a growing sales pipeline, and we've got a clear path towards annual recurring revenue growth.

29:00 And our focus now really is disciplined execution. We need to convert the current market opportunity we've got into that repeatable revenue and continue to expand that through strategic channels and and build Clarion into a high margin, critical infrastructure in intelligence company. And with that, I think I'll hand that back to John. That's great. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just following the q and a tab situated on the right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd 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 your investor dashboard. As you can see, we have received number of questions throughout today's presentation.

29:48 And, John, if I could just hand back to you just to share the q and a with the team, and I'll pick up from you at the end. Thank you, Lily. And thank you very much, gentlemen, for a very illuminating and fascinating discussion. We'll now move on to the live q and a session. We're at thirty minutes. So if we don't manage to answer all the questions in the remaining time, we will endeavor to answer them afterwards and update on the IMC platform in the normal way. So our first question is from Arjun. He's asked, can you please update on server? Because the Orkus partnership has been announced, but I know, Clari, we haven't really heard of that. So can you give a flavor without perhaps going into into numbers? Yeah. Let let let me give let me give a bit of an update on on that. So, yeah, you you're right. We have been developing Orcus for for quite a while. It had started out as something of a sort of consulting service with with with our.

30:51 Can can you hear me? There's a bit of noise on the line. Yeah. It's waking up a little bit. Yeah. So what we have done with is really sort of refine that prod product. One of the challenges in in North America has or in Canada has been that there's a a sort of finite period of time to do that development before it's it's just too cold to go out and do field studies and and field trials with with some of these operators. One of the areas that had particularly come under scrutiny for our development was the mobile application because, of course, quite often, a lot of these areas which are being surveyed, inspect eds, with operators on the ground. They're in very remote, very remote locations where, mobile connectivity is is quite difficult.

31:55 So that's something that we've been working with third bar, to address. And, you know, we're we we we believe we have got a good product there that allows the integration of all the different elements of of of that geo technical survey together, including those remote operations for the operators when they're actually out in in those remote locations. We've got a couple of customers engaged in in field trials. I think we'll see some positive results for those in the the the the next couple of months. But I think, realistically, I would say it's gonna be 2027 before we can turn these successful pilots into recurring revenue.

32:43 That's that that that would be what my council was at the moment. Okay. Thank you very much, Gary. Next one is from Tom. We've touched on this, but I I think perhaps it needs a bit of amplification. And that's talking about expansion beyond pipelines into other energy or industrial assets. So I think that was the the third sort of part of your potential. Could you just explain a bit more? I need a couple of minutes. Got some more questions to follow. Well, I I think if I if I may address it, and maybe we all will, actually. And I think Tom's picked up quite quickly through the presentation there given that, you know, we have we have measurements the fundamental measurement capability across pressure, temperature, volume, flow, density, and the and current or power generation.

33:30 So why can we not apply that to other industries? We we certainly can. We've had discussions around, you know, carbon capture, sequestration, you know, from the construction industry, from, you know, farming at a very high level. And there were some demands for quite advanced sense sensing, which we didn't have the bandwidth or the readiness to invest. So so, really, the answer to the question is quite short, really, is bandwidth. I think, Tom, overall, we can. If the right opportunity came along and then was the right, shall we say, commercial opportunity behind it, we could certainly focus on it. But we do see and we have our channel partners both in the petroleum and in the water sectors and, of course, regulation in North America.

34:19 We feel these are the areas that we wanna really focus on to to develop just now. But there is a whole industry out there, absolutely, we can transcend with Clarion, you know, into, you know, new energy or, you know, infrastructure, even chemical processing, medical. The the the opportunities are endless the way I see it now with having the fundamental measurements under our capability. Right. Thank you. Now the next one's from Andrew, and he's probably this is for Gary. He's asked, what's the interface between real world physical measurements and your software? Yeah. So that that that's a great question and a really important question. And the answer to that is what we're doing is we're connecting into the existing digital systems, that are there in operators.

35:14 So if you're familiar, with the SCADA control systems, the historians, etcetera, that are already in those businesses. To give you a really simple example, and and this is a real pain point that's in The UK water industry at the moment. The the the the problem with physical sensors, once they're in place, is, of course, they're calibrated and then they drift, or they could become unreliable, they could break. So if you just think on a very simple level that while that sensor was there and it was working, we're monitoring that, and we're actually modeling what that sensor is doing under the different operating conditions. That means if that sensor was to break, you don't need to go and replace that immediately because we can actually infer what that sensor would be seeing using a virtual sensor.

36:08 But but but it's the relationship between the physical sensor and the virtual sensor that is is quite important in in in that condition. I'll give you a really simple example. If you're driving your car, you've got the speedometer, you've got the you've got the rev counter, and you've got the gears. If you're actually monitoring those three things, the day that your speedometer breaks, if you still got the RPM and you still know what gear you're in, you could have a virtual sensor make a pretty good inference as to what the speed was of the vehicle at that time. Now that's virtual sensors at the most simplistic level. As we as we add AI into those and and the physics, we can do some pretty sophisticated things in in in that space.

36:59 I hope I hope that helps. Thank you very much, Gary. That's very comprehensive. Our next question is from Paul. I haven't really touched on this, so I think this is perhaps over to all of you, and that's competition. So how do you answer the question that you're a relatively small company and you're competing against? Siemens, Honeywell, Schneider, Emerson. He's given me a whole list. I won't read all the other ones, but you get the point. So I don't know. Do Donnie, do you want to start with that one? Yeah. I mean, I Donnie, isn't it? Tailored made question. Yeah. I mean, it's a very good question. And the first thing I would like to to add is I want competition. I love competition because it means the market's gonna grow faster.

37:44 But there's a clear differentiation here on I need to make sure that I don't give away some customer information that's not public knowledge at the moment, but I'm going to, you know, give you a bit of color to explain the situation. Our channel partner, who's been around the industry, they are the industry bellwether in the marine offshore space and even onshore in certain markets as well. If they had a solution on the market from any of these mainstay players and by the way, I worked with Somerset for, you know, twenty six years. They would be using it to, with combination of their technology in front of the customers to solve problems.

38:30 Some of these problems are waxes, asphaltenes, hydrates, you know, challenges in pipeline corrosion issues over over time. Yet the industry still loses, shall we say, hundreds of millions a year in terms of deferred production, impacts, shutdowns. There is no solution in the marketplace, and we are developing this market position to to give them the heads up or intelligence to understand what's happening at certain point in time so that we can ensure. So so, yes, you you talk about a lot of instrumentation capability, a lot of insight, a lot of knowledge. But if you look at what we see from a combination of a company offering sensors plus domain is very few on the marketplace.

39:24 Understanding the nameplate performance, understanding the science of actually what's happening over time, and making decisions with the with solutions that are not really readily available in the market. So, yes, I I like competition, but we're also developing, you know, solutions that are very unique in the marketplace. And and I say that on the back of my twenty six years experience. I I have, you know, 50 patent filings, 55 to my name, And I thought there's a lot of novelty in what Clarion's been developing. And with the last two years, we're really establishing something that's that's quite unique in the marketplace. And I'm pretty sure many of the companies that Paul mentioned here will be knocking on our door before too long to have access. But but a very good question, Paul. Thank you.

40:23 Well, thank you, Danny. I think we're near nearing the end now. So I think what we just need is particularly for for Gary and Danny. If you could just say what it was that really attracted you to Clarion. Clearly, you've you've, you know, you've been in the industry a long time. Why why did you join Clarion? So shall I go first, Donnie? Go ahead, Donnie. You're probably much better response than mine, but we'll see. Not at So, yeah, as I said, my my background was, you know, Rolls Royce with the jet engines. We're streaming data off of those engines to make sure they're running efficiently and also safely.

41:09 And and and the key thing with that is high volumes of data, critical infrastructure, obviously, But actually doing that for twenty five years, I saw the advancement in AI, ML technologies through that time. And so back in 2016, I was asked to go and bring some of those technologies in into Rolls Royce and and and and just completely re redo the way that that that that we were doing some things there. That engaged me with the start up community. I was hugely energized by the piece of innovation that that we could achieve in in start up, and and that's what attracted me into industrial AI in the start up world. And, obviously, I worked with an industrial company there for eight years.

41:57 And what really attracted me to Clarion was, as I found out in my previous company, there's lots of industries who say they have got data, but it's actually quite difficult to get access to it. The great thing about the oil and gas market is they have been collecting data for twenty years or more. It is a data rich environment, but what they haven't done is is brought in, as quickly, some of the the the newer technologies that are available out there and and the newer techniques. And so putting that combination of data, rich environment which the customer has and us taking in the new techniques that can aggregate that data and generate insights for them that they haven't been able to see And really having that focus on that particular market where there's opportunity for delivering fantastic customer value and therefore high margins for us, that's that was the huge attraction for for joining Clarion for me.

42:55 Donnie? Not very good. I'm I'll keep it kinda light from my side. I already told you I'm a bit of a techie overall, so I like I like good novelty that solves problems, but I also like earnings. So being a business leader, you know, I run a $10,000,000,000 division under for for years. So and and earnings were super important on the back of technology. You can invent the best stuff, but if it's not applied properly and doesn't earn, then, you know, really, what's the point? But here, I see both the combination of scaling novelty in these solutions through Clarion and a huge earnings on on EBITDAs on, you know, 80%. And and the way I'll pitch it here, what really got me excited was a couple of years ago when, you know, Gary, Andrew, myself, the other board members were visiting the technical team, and they presented to us the BPA in technical depth and capability.

43:59 And then all of a sudden, you know, one of the our PhD's capability who designed the system said, look. I had to drop in some virtual sensors in the space to to get the outcomes because they they put this all this equipment in, but there's no measurements or no understanding what's throughput or what power generation's happening here. So suddenly, those three so I said, will those three sensors, if you didn't have them, would your outcomes be delivered? No. Impossible. So we had to drop these virtual sensors in the system to make this complex network of decisions compliant and made sense. And for those three sensors, it made 400 k in one year.

44:45 So imagine suddenly you have three sensors making $4,400 k per one year, then you have a million centers out there across the world. That gives you the scale potential. That tells you my excitement on that of the team. I I wanna leave it there, but I mean, these are kind of factual, you know, numbers that we've shown there. Gary showed you the BPA and and that's the numbers. You know, a few virtual sensors delivered that kind of value and, our our value, what we earned. The customer earned probably a factor of five or six more from, from those. But, really, the scalability, that's the excitement for me, John, and and and audience team here. Great. Well, thank you both very much. Thank you, Andrew, as well. And I think that concludes the presentation. I thought everyone is excited about Clariant.

45:36 Certainly, I am and we are at CATENAI. It's the scale and the opportunity is very real. People will see more I know everyone wants to know numbers. We are in a closed period, so we're not able to give any numbers. But over time, you will learn the growth prospects for Clarion in more detail. So all I would say is that we are very happy to have a relationship and a position, and we will see what happens in the future. So thank you all very much for joining, and look forward to the next time. Thank you. That's all. Thank Robert. Thank you for updating investors today. Can I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations?

46:22 This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good morning to you all. Thank you all.