Siemens Aktiengesellschaft (SIE) Earnings Call Transcript

Ladies and gentlemen, esteemed shareholders, as Chairman of the Supervisory Board, I hereby open the 2020 Extraordinary Shareholders' Meeting of Siemens Aktiengesellschaft and also assume the chairmanship of the meeting in accordance with Siemens' Articles of Association. On behalf of the Supervisory Board and the Managing Board, and also personally, I would like to welcome all of our shareholders and their proxies. I would also like to welcome all the journalists who have joined us online and all others who are following this shareholders' meeting live on the Internet. We're living in extraordinary times. The coronavirus crisis has dramatically transformed our day-to-day lives and the business world. Under normal circumstances, today's shareholder meeting would be taking place with several thousand participants present in person right here in the Munich Olympic Hall. Unfortunately, however, due to the current situation, such a large event of this kind is not possible. Nonetheless, even in such times as these, we must retain the ability to act. In the current exceptional situation, the German government has made it possible to hold virtual shareholders' meetings in which neither shareholders nor their proxies are present in person. Now with the approval of the Supervisory Board, the Management Board has decided to make use of this opportunity. Only via a virtual shareholders' meeting, can we hold our Extraordinary Shareholders' Meeting as planned and also protect at the very same time, the health of all participants and further drive the strategically vital independence of our energy business. We've endeavored to safeguard your rights as shareholders to the greatest possible extent. Thank you very much for joining us at today's virtual shareholders' meeting. Now before we start going through the agenda, I would like to point out a few following necessary formalities. The invitation was, of course, published in the Federal Gazette on May 26, 2020, in due time and form. Now since that day, the notification of the Annual Shareholders' Meeting, together with the additional documents to be submitted have been made available on the Internet page of the company and can be used there today as well. The notification as well as the agenda and the proposed resolutions of management were sent to you together with the invitation to this AGM, and if required, also the additional documents to be submitted. They're also available today here in the meeting room, which is a conference zone in the Werner-von-Siemens-Strasse 1 in 80333 Munich. The conference zone also represents the in-person area of today's AGM. Now we also have, of course, our notary, Dr. Tilman Götte present. A very warm welcome to him. He's sitting right on the stage diagonally behind me with, of course, the right social distance in place. On top of that, I would like to also extend a warm welcome to our Board of Management, our CEO, Joe Kaeser; and our CFO, Ralf Thomas. On the Supervisory Board, we have the second Deputy Chairperson, Werner Wenning present, and according to Paragraph 21, Section 1 of our Articles Association (sic) [ Articles of Association ] I have asked him to take over as Chairman of this meeting, should I be incapacitated. We also have the voting proxies for the association, Mr. Luderer (sic) [ Mrs. Luderer ] and Mr. Atzler. The additional Managing Board and Supervisory Board members are following the AGM via the Internet. There are the options to call them, should that be necessary. The only thing is that Ms. Haller and Dr. Reithofer, they, unfortunately, could not make it today and can, therefore, not follow along today's AGM. The entire AGM is broadcast for our shareholders. And of course, also for the shareholder proxies, it is broadcast live online. The online access has been sent out to our shareholders by simply typing in their shareholder number and their individual access number. Shareholders who have registered with a self-designed password for the electronic sending of the invitation of the AGM, please simply use that access password. The proxies of the shareholders, should please use the access and log in data that has been sent to you. The opening remarks from my person as the Chairperson as well as Mr. Kaeser's remarks are also broadcast publicly online, and partially, we're also broadcasting them on television. They're going to be recorded and will be made available at a later point in time on the company's website. The necessary technical preconditions for the live broadcast have been checked carefully together with our service providers and partners. The notary has also in detail, looked at these setups, asked for details, and was able to get a good feeling of the technological setup. Now in light of this comprehensive preparation, we are absolutely convinced of the fact that we can technologically run this extraordinary AGM without any issues and should the broadcast, despite all of our best efforts be interrupted, please simply be patient for a few minutes as we rectify the situation. Should the connection not be able to be reestablished, we will, of course, send additional information to you. All the information will be provided through our Internet service or via our website, www.siemens.com/hauptversammlung. Now the minutes of -- a stenographic minute of any part of the Annual Shareholders' Meeting will not be made. Video and audio recordings of the broadcast are not permitted. The attendance list will be updated constantly until the end of the shareholders' meetings. As required by the law, the list is available for inspection right here in the meeting room. Alternatively, you may inspect it via the Internet service. I will announce attendance later on. Unfortunately, it will not be possible today to give personal statements like during the usual general debate. It will therefore, not be possible to ask questions or follow-up questions during this virtual annual meeting. But the same token, there is no right to make a statement or to put forward a motion. The registered shareholders and their proxies, however, were able to send in questions until the day before yesterday, July 7, 12 p.m., they could send these questions in through our Internet service. Now the Managing Board will answer these questions later, using, of course, their own discretion as they are obliged and permitted by law. Now in the run-up to this AGM, you have submitted counter motions, which must be made available. We duly publish them on the company's Internet page in detail. There is a counter-motion of the [ Verein von Belegschaftsaktionären in der Siemens AG, e.V. ] [ Foreign Language ] the counter-motion of the [ Dachverband der Kritischen Aktionärinnen und Aktionäre ] [ Foreign Language ] and the counter-motion of the shareholder Felix Weitenhagen. As announced in the notice to the annual shareholders' meeting, we will treat these motions as if they have been put forward orally at this annual shareholders' meeting. All 3 counter-motions are only targeting the spin-off and takeover agreement, and their only objective is to object to the spin-off and the takeover agreement. Therefore, there is no need to have a separate vote on them. Those in favor of the counter-motions must vote no later during the vote on the resolution proposed by the management. Today votes can be cast only by a postal vote or by authorizing the company appointed proxies. Instructions, which shareholders have given their proxies to date have been collected in our IT system. The same also holds true for the postal votes received. Now until the voting begins, your instructions, your postal votes, or your authorizations can be changed. To do so, please use our Internet service, which is the preferred method. Changes via mail, e-mail or Telefax are also possible. Such changes must have been received at the address, which was mentioned in the notice to the Annual Shareholders' Meeting not later than by the time the voting begins. Please send in changes you may want to make in due time. Now in this context, I would also like to point out that the transmission over the Internet might have a slight delay. Votes cast according to instructions will be released by the proxies present either in person later during the voting process using a mobile device. Therefore, they will be considered just like postal votes received in the voting result. Shareholders who are registered in the share register and applied in due time can submit objections against the resolutions of the Annual Shareholders' Meeting via the Internet service from beginning to end of the Annual Shareholders' Meeting. This also applies to their proxies. If lodged, an objection is sent directly to an e-mail inbox, which the notary public is monitoring himself. Here too, I ask you not to wait until the very last moment, not least because of the -- as I've already mentioned, the fact that there is a slight delay in the online broadcast. I'd like to now turn to the only item on today's agenda. The approval of the spin-off and transfer agreement between Siemens AG and Siemens Energy that was concluded on May 22, 2020. Ladies and gentlemen, in May 2019, roughly 14 months ago, Siemens management concretized its vision of a company with a completely new alignment. A company that will be more adaptable, faster, more sustainable and more focused. In this connection, the Management Board presented for the very first time, it's plan for the spin-off and for the listing of Siemens Energy. Now many people at the time thought the schedule was too ambitious, but Siemens has kept its word despite the difficult corona crisis. Over the last few months, the Management, Board members and our colleagues across the entire company have driven Siemens' transformation with outstanding commitment. I would like to take this opportunity to thank all of them at this point for their dedication and hard work. Today's shareholders' meeting marks a milestone in Siemens' history. The spin-off and public listing of Siemens Energy businesses will create 2 strong separate and independent companies: the future Siemens AG and the future Siemens Energy AG. Together with the Siemens Healthineers AG, the next-generation Siemens will thus comprise of 3 strong companies. These companies have excellent prerequisites for being among the best in their respective industries, and they'll have every opportunity to help shape a digital and a sustainable future. That is something that we can all be proud of. Joe Kaeser and Mr. Thomas will explain the key reasons for and detailed circumstances concerning the spin-off and listing of Siemens Energy in just a moment. The Supervisory Board fully supports the Managing Board's decision across the Board. These decisions, after all, are based on a comprehensive analysis of Siemens' business activities and structures and on a rigorous assessment of the strategic options. Now let me briefly outline the key reasons for this step. Number one, in the framework of the global energy transition, the market environment in which Siemens Energy businesses operate has been radically transformed. As a separate and independent company, Siemens Energy will help drive the global transition of energy systems toward a renewable energy future with even greater flexibility, speed and resolve. Number two, the Siemens Energy AG and the future Siemens AG will be able to adjust their strategies, structures and processes as a separate company to the requirement of the respective customers and markets in a more focused manner, and therefore, lay an even stronger foundation for their future success. And third, in the future, each company will be able to access the capital market separately. You, dear shareholders of Siemens will be able to manage your holdings in each company freely and separately going forward. As a result, you'll have greater freedom of action, and within the Managing Board of Siemens AG, there will be no immediate changes due to the spin-off. Also, shareholder representation of the Supervisory Board will remain unaffected. The only change will be on the Supervisory Board's employee side. Mr. Robert Kensbock is an employee of Siemens Energy. For that reason, he will leave the Supervisory Board of Siemens AG once the spin-off takes effect. Already today, I would like to cordially thank Mr. Kensbock for his valuable contribution to the Supervisory Board's work and for his many years of a very trusting collaboration. Thank you very much. Ladies and gentlemen, with today's Extraordinary Shareholders' Meeting, we can conclude a major phase in the reinvention of Siemens and pave the way for the establishment of 2 strong independent companies. We will be very pleased and happy if you would support the proposed course of action for Siemens and Siemens Energy with your votes. Mr. Kaeser will now explain in greater detail the reasons for the planned spin-off of the energy business, and following that, Mr. Thomas will then provide further details about the transaction and explain in-depth the spin-off and transfer agreement, which has been submitted for your approval. I wish all of us a very successful Virtual Shareholders' Meeting. I would now like to turn the meeting over to the President and CEO of Siemens AG. Mr. Kaeser, the floor is yours.

Today is about launching a new and independent company, Siemens Energy. The Managing Board and Supervisory Board of Siemens AG, unanimously approved this step on the 22nd of May, 2020. We should like to propose that you, the shareholders of Siemens AG, approve the spin-off and transfer agreement between Siemens AG and Siemens Energy AG. This agreement forms the legal basis for the separation of Siemens' worldwide energy business on a legal basis. Ladies and gentlemen, I've been working for this great company for 40 years now. At Siemens, I've experienced setbacks and crises but also many successes. And I've learned a lot from these experiences. Above all, I've learned that major decisions should not be ignored or put off if you want to achieve long-term success for the company. We are facing such a decision today. We intend to make the energy business of Siemens a separate legal entity. For this purpose, we are spinning the business off from Siemens AG. We are well aware of the magnitude of this step, and that is why this had to be prepared very carefully and implemented circumspectly. And that is exactly what we've been doing over the last few months. Despite having to deal with the COVID-19 pandemic, we have managed to stick in full to our original schedule. This, too, shows the true strength of our company. As planned, all the conditions, the organization and legal separation of the energy business were fulfilled by early April. As planned, on the 26th of May this year, we presented the spin-off report, which contains all the key information on the spin-off and the spin-off and transfer agreement. And as planned, the Extraordinary Shareholders' Meeting is taking place today, albeit in a virtual format at the company's headquarters. We're also succeeding in dealing with an unplanned management change in a way that has brought structural improvements. Many people, and some of them are present in this room today, have worked hard and effectively for a long time to ensure that we could stick to this ambitious schedule. And I'd like to thank everyone involved most warmly for their contributions in this respect. Turning Siemens Energy business into a separate legal entity is neither a rush job nor a stopgap measure. We're neither dismantling the company nor following a fad. We are creating a new company. And at the same time, we're aligning the established Siemens with the opportunities and challenges of industrial digitalization. Both companies have tall orders to fill even though the initial prerequisites and paths are different. Siemens Energy has to point the way to the economically sustainable energy transition. The new Siemens AG is heading into one of the largest transformation endeavors in industrial history, the Fourth Industrial Revolution or some call it the Internet of Things. To succeed in this task, we have given Digital Industries an excellent positioning in the last few years. In other words, we're starting the race from the pole position. No less important for progress in the global world is expanding a sustainable and efficient infrastructure. Here, too, Siemens is in a good position, thanks to its range of products and Smart Infrastructure and Siemens Mobility, though we aren't yet leaders in all areas and we still need to expand the share of software in our business significantly. The success factors are similar across all Siemens companies. A focus on market trends and customers, innovation and speed will be the decisive elements. It is this that we [ act ] with our Vision 2020 strategy and the follow-up concept Vision 2020+. And we've prepared Siemens' businesses for this well. In a time of unprecedented speed, power and rate of change, the ability to anticipate change, adapt quickly and improve constantly is more important than ever before. If you fail at these tasks, you have no future. But if you succeed, then you can shape the future. In this respect, companies with a stronger focus, have an advantage over traditional conglomerates. Conglomerates can do a lot of things well. But there are very few things that they can do really very well when these things are important for the future. The greatest risk is the constraints -- the socially protective step, socialization of strong and weak businesses. And this is a cardinal error in the allocation of resources, which has threatened the existence of industrial icons on both sides of Atlantic. The independence of our health care business in the form of health -- Siemens Healthineers into a separately managed business is a primary example of how focus can increase value. Since its initial public offering in March 2018, 1.5 years ago, Siemens Healthineers' share price has increased by about 50%. That corresponds to an increase in the value of around EUR 15 billion. At Siemens Energy, we want to continue this success. Once it's a separate legal entity, Siemens Energy business will no longer have to compete with other Siemens' businesses when it's a question of capital allocation. For example, resources for research and development, acquisitions and investments. Siemens Energy will have its own direct access to the capital market. The international rating agency, Standard & Poor's, has already given Siemens Energy an investment-grade rating of BBB with stable outlook. This rating will give the company access to financing options on the financial and capital markets on attractive terms. As an independent listed company, Siemens Energy AG will be able to sharpen its profile in the competitive environment. For investors, the differences between the investment and risk profiles of Siemens AG and Siemens Energy AG will be clearer. They'll be able to make targeted investments in the industry and company of their choice. This distinction is important for investors because as Siemens Energy becomes independent, there are also risks associated with the legal separation. Spinning off Siemens Energy from the Siemens Group could have an adverse effect on synergies and economies of scale. Because of its lower rating compared to that of Siemens Group, the Siemens Energy Group will have somewhat less favorable terms on the capital market. And the transaction will generate costs, which in some cases, is substantial, such as the tax burdens related to the spin-off. Nevertheless, the Managing Board and the Supervisory Board are convinced that the anticipated advantages of the transaction clearly outweigh the potential disadvantages. We also proceeded with caution regarding the spin-off process. Ensuring business continuity always had priority over radically changing processes. All resources were initially taken over on a one-to-one basis. Many services will initially be provided by Siemens AG in term for consideration until processes at Siemens Energy have been optimized. My Managing Board colleague, Ralf Thomas will speak about this a little later in more detail. The spin-off of Siemens Energy will, of course, also have an impact on the Siemens Group. The group will bundle the operations of our industrial businesses, Digital Industries, Smart Infrastructure and Siemens Mobility and will hold a majority stake in Siemens Healthineers. And this move will put the new Siemens AG in an excellent position for the future. The demand for solutions from Digital Industries in sectors like food and beverages, hygiene products and pharmaceuticals is growing, for example. And experience in the coronavirus pandemic this year indicates that industrial digitalization is likely to accelerate even further. At Smart Infrastructure, software and service, especially remote maintenance, are playing an increasingly important role, but also new product segments, such as in the infrastructure of electric mobility and distributed energy solutions are bringing growth impulses. Siemens Mobility has an industry-leading, vertically integrated infrastructure portfolio and benefits from Siemens' excellent position in the field of digitalization. All these businesses offer leading digital technologies that will be in even greater demand in the future. They will continue to receive support from the high-performance service and governance units. The goal of the new Siemens AG is to focus and to innovate in order to accelerate growth and significantly increase the company's value. Improving the risk profile is also likely to play a role in achieving this goal. A look at today's stock market valuation shows the latent potential very clearly. Siemens Healthineers as of the 2nd of July 2020, had a market value of about EUR 42 billion. The net book value of Siemens Energy as of the 31st of March 2020, was around EUR 17 billion. The market capitalization of Siemens AG, also as of the 2nd of July 2020, was about EUR 85 billion. If we subtract from this figure, the stakes in Siemens Healthineers [ as the ] 85% of the company we hold, and the net book value of Siemens Energy as of 31st of March 2020, the difference on the core areas of Digital Industries, Smart Infrastructure and Siemens Mobility and the other individual assets would together have a combined value of about EUR 32 billion and revenue of EUR 44 billion at the end of fiscal 2019. What you can see here is that, compared to our 2 main European competitors, this is a very low valuation. And this is probably going to be the greatest potential for a revaluation of the spin-off in the near future. But the growth and earnings figures remain intact and they must be achieved. Ladies and gentlemen, let's now turn to the opportunities for the new Siemens Energy. The energy market is undergoing a major transformation. The fight against climate change requires a decisive shift in electricity generation because this sector accounts for about 40% of global energy-related CO2 emissions. At the same time, the global demand for electricity is growing rapidly. According to the latest forecast, the global generation of electric power will increase by 50% between 2018 and 2040. Even today, there are still around 850 million people in the world who have no access to electricity. The challenge is, therefore, to meet this need while countering the climate change in an economically meaningful manner. For this reason, I've requested that the Executive Board of Siemens Energy AG should rapidly submit a plan, taking the needs of our stakeholders into account for exiting coal-fired power generation. This plan will be more responsible than the demands being raised unilaterally by some activists, but it will certainly be more rigorous than laggards consider necessary. As a global leader in products, solutions and services for the generation and transmission of energy, Siemens Energy will help customers throughout the world to master the necessary task of achieving a socially and economically responsible energy transition. We get a feeling for this in the following video. [Presentation]

Big plans in the service of society. Ladies and gentlemen, the shift to a sustainable and economically viable energy supply will require major investments, and this represents a great opportunity for Siemens Energy. One example of this is the field of hydrogen solutions. Hydrogen has the potential in future to replace fossil hydrocarbons as an energy source, and we need to maximize this potential. And the German government shares this view. A few weeks ago, it presented a hydrogen strategy, EUR 7 billion is to be made available for ramping up the market for hydrogen technologies in Germany, and an additional EUR 2 billion are earmarked for developing international partnerships in the field of hydrogen. Only yesterday, the EU Commission presented the Clean Hydrogen Alliance which was its strategy for promoting hydrogen technologies. This alliance of governments and the private sector is intended to advance the production, distribution and consumption of hydrogen produced by wind and solar power. By 2050, the plans call for investing up to EUR 180 billion and creating around 1 million jobs. This is also urgently necessary because the structural change from fossil fuels to renewable energies will take its toll. There will be a price to play (sic) [ pay ] in terms of jobs, qualifications and the regional distribution of value creation, in other words, with regards to the policies of selecting business locations. And here, we urgently need a joint plan for mastering the challenges and seizing the opportunities. But now back to here and now. When preparing for the spin-off, we assigned the future Siemens Energy Group, all the business fields and areas that we believe are necessary for the successful development of business in the Energy Sector. These business fields are Generation, Industrial Applications, Renewables, Transmission, and the New Energy Business that we are just talking about in terms of hydrogen. The future Siemens Energy Group, therefore, will be active worldwide with an extensive portfolio along the entire value-added chain. The Managing Board of Siemens Energy and the Executive Board of Siemens Energy AG agree that it will be a benefit for the business of Siemens Energy and its ongoing development, if it could be managed under the names of Siemens Energy and Siemens Gamesa. And that is obvious because the Siemens brand stands for quality, innovation, engineering skill, reliability and integrity. You can see its characteristics were particularly in demand in the Energy Sector, and they open doors around the world. And that is intended to benefit Siemens Energy in the future, too. To this end, Siemens AG has concluded long-term agreements that will enable Siemens Energy and Siemens Gamesa to continue using the Siemens trademark. A company's success depends to a great extent on the quality of its leadership. And here, too, we're in outstanding position. The Executive Board of Siemens Energy AG comprises of Dr. Christian Bruch as CEO; Maria Ferraro as CFO; Dr. Jochen Eickholt; and Tim Oliver Holt. Christian Bruch was a member of Linde AG's Board of Directors for a long time and was responsible for many of the company's Engineering division. I met him on many occasions in that role. Maria Ferraro was most recently the CFO of the Digital Industry Operating Company and Chief Diversity Officer of Siemens AG, which is going to be beneficial to Siemens Energy. Jochen Eickholt was responsible for the successful turnaround of Siemens Mobility and our portfolio companies. And you can see what Siemens Mobility looks like today, it is something that is owed to him and his team. Tim Holt, among other things, managed the gratifying service business in Energy Sector so far. It's not always easy in the competition, and he has been extremely successful, and I'm very glad that he is on the Board of Siemens Energy. When selecting candidates for shareholder representatives on the Supervisory Board of Siemens Energy, we attached great importance to diversity and international experience because it is an international business. And we've succeeded in attracting leading representatives from the Energy Sector, business and former political leaders. And we are delighted that even at this stage, we can name the designated shareholders' representatives on the Supervisory Board of Siemens Energy AG. The following members are planned: Christine Bortenlänger, Sigmar Gabriel, Hubert Lienhard, Hildegard Müller, Laurence Mulliez, Geisha Williams and Randy Zwirn. You won't know them in many cases, and if you don't know them, just enter the names in a search engine, I'm sure you'll find a lot of details. It's also planned that our CFO, Ralf Thomas, Matthias Rebellius, the Chief Operating Officer of the operating company, Smart Infrastructure; and the CEO of Siemens Switzerland and myself are to join the Supervisory Board. Once the spin-off takes effect, Siemens Energy AG will be subject to the provisions of Germany's Codetermination Act, and like Siemens AG, will have a parity-based codetermined Supervisory Board. I am delighted about this, and it's important that the 2 sites work together to benefit one another. Codetermination applied correctly is a great help in achieving social peace. For legal reasons, it's not possible to finalize employee representation on Supervisory Board until after spin-off takes effect. In the meantime, the deliberations regarding the Supervisory Board's Audit Committee have made further progress, and the committee will be chaired by Siemens' CFO, Ralf Thomas. When drafting the spin-off and transfer agreement between Siemens AG and Siemens Energy AG, we took the interest of all stakeholders into account. We decided against an initial public offering because we wanted precisely to fix Siemens AG's stake in Siemens Energy in advance and also because this option enables us to distribute a much larger portion of Siemens Energy shares. In addition, we wanted to put the assets that belong to you into your hands. As a result, you will decide whether you want to keep or sell the shares in Siemens Energy as they are allocated to you, our shareholders. Shareholders, many of you have held Siemens' shares for years. I should like to thank you most warmly for your interest, loyalty and trust on behalf of the entire Managing Board. Together with you, the Managing Board and Supervisory Board of Siemens AG, now want to take the next step in the further development of our company. We are convinced that this step is in your interest and the interest of all stakeholders, including our customers, employees and society. Ladies and gentlemen, over the past few years, I've traveled all over the world. And wherever I went, whether to China, Indonesia, Russia, Egypt, Saudi Arabia, Iraq, the United States, Mexico or Brazil, South Africa, Nigeria or Ghana, energy was and is the top priority. For every country, having a reliable, affordable and sustainable energy supply is the basic requirement for economic and social development. Each country, however, embarks on this path from a different position. In the energy transition, there is no single solution. No one-size-fits-all. We know we need to be able to react to the special features of each national economy, and that's exactly what Siemens Energy can do. It has the competence, the portfolio and the setup to implement a sustainable energy transition for each country. That is its task, it's purpose, the purpose of Siemens Energy. And that is what we mean when we say we energize society. Now we want to give this business the entrepreneurial freedom it needs to fulfill this task. And we ask you to give your approval for -- to do so. The remaining new Siemens AG will act from a position of economic strength and will shape actively the industrial transformation and will be able to set benchmarks for the Fourth Industrial Revolution. Siemens Healthineers have already shown how creating value through focus works. Now it's about the tenth-highest valuation compared to the 30 companies listed on Germany's DAX stock index. This is an impressive position. Shareholders, by approving the spin-off of Siemens Energy, you will be laying the foundations for a new era. Three Siemens companies will be making 3 of the most important industries in Germany and the world, which they will be shaping crucially. On the one hand, this means that we need to create the conditions for future success. The huge transformations taking place in all areas and the accompanying structural change will place great demands on us. But we can tackle these challenges from a position of strength. The cornerstone of our work has certainly been set. Thank you.

Thank you very much, Mr. Kaeser. Ladies and gentlemen, at this point, we end the freely accessible broadcast of this AGM. I would now like to say goodbye to all those who can no longer follow the Annual Shareholders' Meeting, and thank you very much for your interest. [Statements in English on this transcript were spoken by an interpreter present on the live call.]