Philip Fracassa: Yes, I think I commented on this in my statement. I mean, we’re starting the year very strong. So, I think in general, the environment that we’re operating in here in the first week of February is a very positive one.
Michael Feniger: Thank you.
Richard Kyle: Thanks, Mike.
Operator: Thank you. Our next question comes from Dillon Cumming from Morgan Stanley. Dillon, your line is now open.
Dillon Cumming: Great, good morning. Thanks for the question. Sort of as quickly on the APAC revenue growth in the quarter, another sequential acceleration in the rate of growth probably skews a bit, I think more positive versus some of the other industrial reads have gotten from the channel around China over the last quarter or so. So, could you just talk about how much of the growth there right now is being driven by renewables versus any other kind of growth that we’re seeing across the rest of your end market mix?
Richard Kyle: Yes, certainly our Asia business has become pretty, pretty significant mix to renewable energy. So, our outlook there, I think would continue to give us higher, a more positive outlook as well as more positive results than peers with a more diversified market mix for more industrial market mix.
Philip Fracassa: Yes, I would say Dillon, when you look at the quarter, I mean, it was — we were up 19%, it was broad. I mean, China was up high teens, India, up high teens, the Rest of Asia up in that range. As Rich said, renewable was by far the largest growth sector, but distribution was right behind it, as we continue to see positive performance across distribution as well as other sectors. So, it’s been broad growth, but there’s no question particularly China has been very renewables, at least that’s been the biggest driver in the last few quarters.
Dillon Cumming: Okay, got it, great color. Thank you.
Richard Kyle: And at the results and outlook, the outlook for India is pretty strong in ’23.
Dillon Cumming: Okay, that’s helpful. Thank you. And maybe just one last one on the housekeeping side with regards to the currency impacts, you called that out as a headwind and into your margin bridge for next year. I know, it was still negative in the fourth quarter. But you did talk about some more challenging comps from that perspective as well. Could you just talk about how impactful expense might have been either as a tailwind or a headwind to margins in 2022? And then what you are kind of baking into the headwind for 2023?
Philip Fracassa: Yes, I would just say Dillon, in 2022 with some movements in the currencies, and on the transaction side, we had some transaction favorability in 2022, which was actually, it was a margin tailwind actually helped our margins in 2022 and really, the non-recurrence of that — of those positive gains in 2022 kind of not repeating in ’23, coupled with the continued headwind on the top line, is going to produce year-over-year, pretty significant headwind to margins, just by the flip of that, if you will, from one year to the next. And so, that’s sort of baked into the guide, and really just talking — taking a maybe a bigger step back. And the guide sort of implies 20-ish percent all in incrementals, in that currency being a big headwind.
