Larry Culp: Nigel, I don’t know if we got all of that. Let me speak to the offshore dynamic. I think what we are going to see in €˜23 is pressure. We talked a little bit earlier about the doubling of revenue, the dynamics with the Haliade-X being new and how that rev rec will lead to op profit pressure. From a cash dynamic, we will also see disbursements as those projects move forward. We should see some milestone payments, some of which will be back-end loaded as well. And they too have a little bit of timing variability around them. We need to execute in order to see that in €˜23 as opposed to €˜24. But as we look forward, I think what we have gotten from customers is a lot of good feedback relative to where we go next with the evolution of the Haliade-X.
And that’s where our product teams and our engineering teams are focused. I think the timing of when we see the next tranche of orders is such that it’s going to be potentially more a €˜24 than a late €˜23 dynamic. And that too will create some of that pressure that is not atypical for a business that is effectively in startup mode. I wish it were otherwise, but again, I think given what we are seeing in grid and what we should see in onshore once we have clarity with the IRA, that will help buffet us in many respects. But when you look at Vernova overall, for that free cash flat to slightly improving guide, that’s really what we are referring to. I think with respect to no change in expectation, right. Again, if we get the volume that I think everyone anticipates coming here in the North American market, our best market, where we are seeing healthier pricing, coupled with better execution from a manufacturing, from a cost perspective, grid being profitable and onshore or offshore rather coming along, we should do that in €˜24.
We need to do that next year.
Carolina Dybeck Happe: And when you see that cash €“ that profit will then turn into cash and then also the timing that we have talked about on working capital with the progress down payments and more of that happening in 2024.
Operator: Our next question comes from Jeff Sprague with Vertical Research Partners.
Jeff Sprague: Hi. Thank you. Good morning everyone.
Larry Culp: Good morning.
Carolina Dybeck Happe: Good morning Jeff.
Jeff Sprague: Alright. Good morning. Just sort of a multi-parter for me, if I could, I am sorry. But just first on renewables. I just do want to confirm that the free cash flow guide includes the expectation of this $3 billion to $4 billion of payments. But my larger question is really how we think about normal conversion going forward, kind of the implied free cash flow conversion on the guide here today for €˜23 is 180%, 190%, 200% or so relative to net income, right? So, how do we expect that to normalize over time? And maybe you could provide just a little bit more color on that bridge from net income to free cash flow. Carolina, you started walking us through the delta a little bit, but still just kind of that absolute difference between the two would be interesting to bridge? Thank you.
Carolina Dybeck Happe: Sure, Jeff. So, to start with, you are right. As Larry mentioned earlier this morning, in our guide for renewables, we are expecting the $3 billion to $4 billion of payments in the free cash flow. When we talk about free cash flow conversion, and you know me, I always talk about cash, but it’s important to see where it comes from. So, broadly speaking, we do expect to operate at more than 100% free cash flow conversion for the next few years. And why is that, a couple of different parts. First part, depreciation and amortization being higher than CapEx. And then I will talk more about the working capital opportunities and timing as well. But with the depreciation and amortization, an important distinction.
