Operator: Our next question is from the line of Steve Byrne with Bank of America.
Steve Byrne: I was curious to hear an estimate from you on what fraction of your sales would you say involve equipment at your customers that either you own or that is proprietary to you that would have to be removed if a competitor were to come in and scoop up that — that business. And with respect to competitors, are you seeing any changes in competitive dynamics out there, such as the Solenis-Diversey combination? Are you seeing anything coming out of that?
Christophe Beck: So, a few questions in here. So, to unpack, Steve, first, on the equipment question, just would like to remind you is on 95% of our sales are recurring. So it’s not equipment by definition. This is in chemistry or lease programs or digital subscriptions or sales that you get recurringly on a monthly, on a weekly basis. So the equipment components is really, really small. At the same time, since you have equipment in those customer location, well, it increases the stickiness as well of our business with our customers. Not obvious to change. So from us to someone else, especially, since equipment is not going to be at the same level of technology, need to say the least. But this is not the way we’re driving our business with our customers.
We want them to stay with us, not because it’s hard to change the equipment, but because they get the best service, the best customer experience, and most importantly, that their total cost of operation is going down because they reduce their usage of natural resources, carbon and water and at the same time, as well as the labor. So, that’s the way we drive our business, 95% recurring, less than 5% equipment. And to your last question about the competitive situation, our competition is busy right now, but we take them very seriously as we’ve always taken them. And the fact that our new business generation is doing really well is a good indication that we’re kind of winning that war.
Operator: The next question comes from the line of Vincent Andrews with Morgan Stanley.
Vincent Andrews: I’m just wondering if you can give us a little more specifics on the volume by segment. I mean, I see what you said for the total company on an ex-Europe basis, but can you tell us anything in particular about the key segments?
Christophe Beck: Yes, Vincent. So generally, the volume profile is similar in every business. I like a lot what the Institutional & Specialty is doing. As mentioned so many times during that call, they are in positive territory and are keeping accelerating. So they’re at the forefront. They had the most to recover as well at the same time, but basically, so doing really, really well. Industrial, let’s not forget that they had a lot of work to do in pricing over the past two years. And as mentioned before, being in a position to deliver similar margins in this quarter, in the second quarter than what they had in 2019 is a remarkable accomplishment. And now so shifting over the last few quarters, on the new business, what is helping improve as well the volume in Industrial.
And to call out as well that Water in Industrial is — has been positive, remains positive and has a very good story as well here. And the drag is in paper, which is mostly driven by our customers or reducing inventories, after all, the past few years, disruptions that they had. But I like the new business that we have in paper. So paper is going to improve as well, the inventory meltdown of our customers is going to improve as well over the next few quarters. So, all in, Institutional and Specialty is strong and getting stronger. Industrial improving as well, with paper becoming better over the next few quarters. And I’ve mentioned the other businesses getting better as well, as we move forward.
Operator: The next question comes from the line of Scott Schneeberger with Oppenheimer & Company.
