Knorr-Bremse AG

Good afternoon as well as good morning, ladies and gentlemen. My name is Andreas Stiftauer, Head of Investor Relations of Knorr Bremse. I want to welcome you to Knorr Bremse's conference call for the first quarter 2021 results. Webcast and conference call will be recorded and are available on our homepage www.knorr-bremse.com in the Investor Relations section. Here you can find today's presentation and later a transcript It is now my pleasure to hand over to Dr. Jan-Michel Moosic, our CEO, and Frank-Marcus Weber, our CFO. Please go ahead, Dr. Moosic.

Thank you very much, and I would like to welcome everybody to our conference call today. I really appreciate you joining us, and I hope that you and your families in these very difficult and unusual times remain healthy and safe. Today's call is made up of two parts. First, I'd like to present the highlights of the last quarter, and then I'll hand over to my colleague, the CFO, Frank Weber, and he will provide more details of the financials in the first three months, followed by the guidance for 2021 and some final remarks. And afterwards, as usual, we look forward to your questions and comments. Allow me to walk you through the group highlights of the first quarter 2021 on chart number two. Knorr-Bremse generated revenues worth of 1.7 billion euros, which represents an increase of 6% organically and an EBIT margin of 14.9% in the first quarter, which is up 110 basis points year over year. continue to see a very strong recovery in the truck market. CVS, our truck business benefited greatly from this development, and this was our key driver in the first quarter, reaching record revenues of 886 million euros, which is an increase of 22% year over year. Corresponding EBIT margin came in at 13.1%, which is also a significant improvement compared to last year's level of 10.4%. Our rail business RVS developed as expected in the first quarter of 2021. There we expected that the first quarter would be probably the weakest in the year, and it generated revenues of 805 million euros, which is a decrease of 7% year on year organically. And then at an EBIT margin of 18%, which is despite the top line development and improvement of 50 base points versus the previous year quarter. It's noted that ESG is a very important topic at Knorr Bremse, as we have highlighted several times already in the past. And to undermine this priority at the upcoming annual general meeting next week, a proposal will be put to the vote that 20% of the short-term management bonus will be dependent on ESG in the future. I would also like to highlight that we have taken further steps since the beginning of the year to strengthen our corporate governance. And in a moment, I will provide more details exactly on this topic. With that, let me continue with chart number three, We know and understand that the topic of Mr. Thiele's legacy is very important for the capital market. Therefore, I would like to give you an update on this. The signals we receive from our anchor investor, the Thiele family, including Julia Thiele-Schurhoff, after the passing away of Mr. Thiele, are characterized by stability and continuity. This can be seen by the joint press release, which was published a few weeks ago by the Thiele family together with Knorr-Bremse, which was stating that the 59% stake in Knorr-Bremse is to be transferred to a family foundation. Creation of this foundation is now being initiated. Julia Thiele-Schürhoff, the daughter of Mr. Thiele, will continue her mandate as supervisory board member, which she has held since 2016 already. As a visionary entrepreneur, Hans-Germann Thiele placed the management of the company in the hands of external managers almost 15 years ago. The company is led by a highly experienced supervisory board and a management team, which will continue Knorr-Bremse's successful course. The important element of the aforementioned stability is the extension of the mandate of our Supervisory Board Chairman, Professor Dr. Mangold, by two years. This period should be sufficient to find and induct a suitable successor for him. Moreover, Dr. Sommer, a former CEO of ZS Friedrichshafen, will take over Mr. Thiele's mandate after the upcoming AGM. He has many years of industrial experience and in-depth knowledge of the truck industry. With Dr. Claudia Meifert having joined the executive board on May 1st, 2021, I'm very happy to have another very experienced manager complementing our management team at Knorr Bremsen. And the expansion of female leadership with Knorr Bremse will be very supportive for the whole company. Turning to the next chart, on slide number four, I would like to give you an overview of the current market situation and the outlook towards the end. Overall, we see a continuing strong market recovery in the truck industry. and that the underlying market fundamentals in rail are unchanged. The rail market does not face any cancellations of projects, but what we see is postponements and shifts of tenders that are still ongoing. This development is also reflected in the financials of our customers, the rail OEMs, or original equipment manufacturers. In addition, the rail industry has also not experienced any meaningful supply shortages, driven by the fact that not many mass products are used here, customization is very pronounced, and there is a very broad and locally focused supply industry. COVID-19 persistently results in less train traffic and fewer trains on the tracks, which affects the whole rail aftermarket business. However, due to the large fixed cost base of train operators, it makes financial sense for them to use at least 80% of train capacity to generate a contribution margin. In addition, there is an explicit political will to keep public transport running during the pandemic. Shift in demand in APEC, especially in China and India, but also partially in the EU, are putting pressure on the rail market currently. Nevertheless, we expect long-term that global investment programs specifically for rail transport will support demand. The main keywords here are global decarbonization plans, the Green Deal in Europe, and ambitious infrastructure programs in the EU as well as in the US. Nevertheless, regarding ridership, we do not expect that pre-COVID-19 levels will be reached before 2023. Now coming to the truck market, which experienced a very pleasing demand currently. Key sales markets of our truck division in Europe and North America have continued their significant recovery paths, showing strong truck production rates despite first impact from the challenging supply situation. The current Chinese truck market remains a class of its own, supported by good underlying demand and pulling effects from the second half of 2021. Please keep in mind that as of next July, it is planned to introduce the new CN6 emission standard which will result in a probable decline of market demand here because investments have been pulled forward due to this effect. The development of the truck production rate in Europe and North America until year ends will depend heavily on the development of the shortages on the supply side. However, market research companies currently expect truck demand in Europe and North America to increase significantly overall in 2021, And we share this opinion so that overall we expect across the year an increase in demand of production rates overall. So that's the underlying overall effect for 2021. Chart number five. Let's have a look at that and see what these market environments mean for our divisions. We will start with rail. The order intake development to 2021 was rather low, which was fully expected in that sense. The main drivers have been contracts in the rail industry are very difficult to put into a quarterly course. They often span several months and tend to be lumpy sometimes. Tender activity is more pronounced in the second to fourth quarters in 2021. Knowing this, we are not concerned about the rather weak performance in the past quarter. Additionally, after a strong order intake in quarter 420, we already anticipated the Q1 2021 order intake to be weaker, which we communicated already during the presentation of our CISPA 2020 results in March. The lower intake was recorded in all regions, but predominantly in the Asia-Pacific region, especially China, high-speed and aftermarket, but also in India, and there are particularly LHB coaches who are the drivers. Four quarters ahead, we expect a better development of RVS order intake, still depending on the unknown COVID-19 impact. Nevertheless, we expect that the full year book-to-bill ratio should be above one. Aftermarket business is still affected by the lower rail traffic. Please keep in mind that the number of trains in service is more important than the actual ridership. Trains that run on track or return to service after break must meet all regulatory obligations. Therefore, trains must be maintained regularly. Despite the fact that the number of trains on track is at a solid level, it is lower compared with the situation pre-pandemic. This continuously impacts our service and spare parts business. In addition, rail operators in China extend overhaul cycles, also as a result of lower mileage of high-speed trains driven since the pandemic started last year. On the positive side, countries which see fewer infected people monitor significant uplifts in train utilization. We believe that the aftermarket business will improve when the tensions from the pandemic will decrease and rail mobility returns to normality. I would now like to turn to China, a topic on which we always receive many questions from you. Overall, for the Chinese government, train transport is an important pillar for the nationwide mobility of the population. Accordingly, the country is investing in the expansion of rail networks and in new trains. Even China is not immune to the effects of COVID-19, and after years of sometimes extreme growth rates, we are seeing a normalization in many areas. The rolling stock industry in China is getting mature and the country is adapting to the market conditions of other countries and expect this normal and healthy development. Knorr Bremse has a strong market position in China and we are one of the few non-Chinese suppliers in the rolling stock industry. Obviously, our products can make a lasting impression in terms of quality and, above all, innovation. The two-circuit policy in China exists and will remain. However, I believe RBS is well positioned and we are aiming to find creative answers to deal with these imponderabilities. Moving to our truck division on page six. The first quarter has seen an extremely positive development, driven by strong demand in Europe, the US, and China. The strong freight markets with high transport volume means that the transportation industry renews and expands fleet to fulfill increasing demand, which is expected to continue in Europe and North America until the end of 2021. In China, we expect, as previously said, a significant slowdown of the truck production rate following the introduction of China 6 mentioned before. Last year, China was the only large market which saw production rates going up. Please keep in mind that this regional outlook for the remainder of the year will also be heavily dependent on future developments in the COVID-19 pandemic. Content per vehicle is one of the key drivers of CDS. It is not really impacted by cycles. Due to the extraordinary increase of truck production rates in Q1-21, the good development of content per vehicle was less visible, but content growth will continue to be an important pillar of CDS future growth path. The global shortage, especially of semiconductors, had already a noticeable effect on our truck business in the last quarter, but we were able to keep the impact low by introducing measures very early. In addition to the semiconductor crisis, however, we also see that the supply of other components, such as metal, plastic, have become more difficult. This is a condition that usually occurs during cyclical recovery phases, and our truck division is very experienced in dealing with such circumstances. In the coming quarters, we expect the global supply chains for semiconductors and other components remain uncertain. The semiconductor situation in particular should not change quickly. Accordingly, we expect CDS seconds, but even more pronounced, the third quarter and potentially beyond to be negatively impacted. Nevertheless, we still expect solid sales growth for our truck division for the full year. The COVID-19 pandemic continues to create uncertainty and it can still lead to additional restrictions that could impact us both in our rails and our truck divisions, our business partners and our customers. Knorr-Bremse is very closely monitoring the situation and is prepared to act quickly if necessary. Let me now continue with page number seven and the operating highlights of our both divisions. To prepare our truck division for the coming generations of e-vehicles, we have launched the group's internal so-called e-cubator as an agile think tank. Sixty in-house and external specialists work on innovative, future-oriented solutions at Knorr Bremsen's Munich and Budapest locations. CVS announced to enlarge its Dalian plant in China to meet the ongoing booming truck demand there. The start of the production is scheduled for December 2022. CVS has signed a major contract with one of the world's leading global truck OEMs worth 1 billion euros to continue the long-term partnership with this customer. The new supply contract was signed for new generation of braking and air treatment systems which use the next generation technology developed by Knoll Bremse, the so-called global scalable brake control system and the global scalable air treatment system. On the other side, RVS won two major contracts which will be executed together with Stadler. One multi-system order in Berlin to equip 606 metro cars and one in Atlanta for 254 metro cars. In my view, one order is particularly noteworthy with regards to potential future business models in the aftermarket sector. Knorr Bremse has signed a framework agreement with Deutsche Bahn, which will enable our rail division to develop projects based on condition-based maintenance of rail vehicle fleets. Data-driven projects like these open up the opportunity to participate continuously in related cost savings of our customers. With this, I would like to hand over to my colleague Frank, CFO of Knorr Bremsele.

Thank you very much and a warm welcome from my side as well. Thank you for joining us today, despite the fact that this day we have chosen is a bridge day. I do already apologize in advance for that. Let us talk about the numbers on page eight now. Considering the ongoing challenging economic environment around the world, our quarter one financials once more confirmed the robustness of our business model. Given that, we do believe we have achieved a superb performance overall. Nevertheless, KB was not fully immune to the still ongoing impacts related to the pandemic. Order intake increased significantly by 13% to 1.8 billion euros. The order book grew once again by 9% to a new record level of almost 5.1 billion euros. Revenues increased by 4% to 1.7 billion euros and margins grew by 110 basis points. EBITDA margin was up from 17.8% to 18.9% and EBIT margin or return on sales from 13.8% to 14.9%. Please note that we will focus more on EBIT than EBITDA from this year onwards. Free cash flow could be improved versus the previous year, but with minus 23 million euros still slightly negative, resulting in a cash conversion rate of minus 13 versus minus 43 percent in the previous year. Let me dive deeper into our order intake and order book on chart 9. Compared to the same period last year, order intake on group level increased significantly by 13% to 1.8 billion euros in quarter one. On an organic basis, the increase was even higher at around 16%. Year over year, we had some FX headwinds, mainly from US dollar and Brazilian Rai, Russian Ruble and Indian Rupee. So basically all BRIC currencies plus US dollar. Accordingly, the book-to-bill ratio also improved year on year, reaching 1.06 versus 0.98 in the previous year's quarter. The development of the order book at the end of the first quarter was also particularly pleasing as it rose for the third quarter in a row. It grew very solidly by 9% to 5.08 billion euros. This record figure provides us with a generally very good confidence and is the foundation of our guidance. We continue with the revenue development on chart 10. Revenues on group level in the first quarter increased by 4% to 1.69 billion euros. On an organic level, we saw an even better performance with an increase of 6%, but also faced some headwinds from FX effects as already explained. This development was very pleasing as our first quarter of 2020 had not been significantly hit by COVID-19 already. As already in the fourth quarter of 2020, the APEC region continued to develop particularly well and showed 9% growth on a year-over-year basis. Europe returned to the growth path driven by recovery demand and posted an increase of 3% above previous year's level. Europe still accounts for the biggest part of our total revenue, with a share of around 47%. North America is still not quite recovering completely and therefore faces a slight decrease by minus 2% year-over-year. Let me continue with the development of our profitability on chart 11. In the first quarter of 2021, Groups Avid amounted to €252 million after €224 million in the previous year's quarter, which is a strong increase of €28 million, or 12%, despite some FX headwinds. The EBIT margin was at 14.9% after 13.8% in the quarter one of 2020. This significant increase clearly shows the profitability resilience of our business model and our ability to get out of the crisis with higher profitability. As growth of profitability was well above the revenue increase in the quarter. November benefited predominantly from the operating leverage. In addition, we were still able to benefit from cost-saving methods, although this effect would diminish to some extent as the year progresses. It is our goal that the cost base will develop underproportionately as our business activity and revenues increase. The aftermarket revenue share decreased year-over-year by 3 percentage points to around 34% in the first quarter of 2021 on group level, mainly driven by the strong growth of the OE business. In absolute figures, aftermarket was not immune to the effects of the pandemic that is still ongoing, especially on the rail side, and recorded a decrease of 6% to 569 million euros. was solely driven by the RBS division and basically COVID-19 related. The EBITDA margin developed strongly in line with the EBIT margin and improved as well by 110 basis points year over year to 18.9%. Let's continue on chart 12. In 2020, we have initiated a CapEx management program and we prioritize and monitor ongoing spending very closely. Accordingly, investments in absolute terms decreased from 81 million euros in the first quarter of 2020 to 62 million euros in quarter one of 2021. In relation to sales, investments reached 3.7%. However, we do expect this ratio to increase in the upcoming quarters and think it should reach a level of 5-6% for the whole year. At the end of the first quarter, 21 networking capitals stood at 1.08 billion euros. This is a slight increase compared to the previous year in absolute figures. due to higher stock levels to secure the supply chain and to remain a high level of flexibility in regards to our operations. But with our measures, we were able to improve the scope of sales of net working capital, which shows a clear relation to the revenue situation. In the current fiscal year, we expect that the net working capital should be overall higher, again in absolute terms due to expected sales growth. Fuel Life operating row C improved from 26.7% to 28.2%. This increase was supported by a higher profitability level and a well-managed stable capital employed. Let me continue with our free cash flow on chart 13. The free cash flow in quarter 1.21 came in at minus 23 million euros. which is 38 million euros better compared to the previous year's quarter. But please note that the free cash flow in the past quarter benefited from the final payment in the context of the state and east-back transaction of the Munich-Nordgelände amounting to around 50 million euros. But even without this extra payment, Free cash flow was remarkable at only minus 73 million euros, given the general seasonality of this KPIs, and the great figure of free cash flow of more than 500 million euros that we generated in the fourth quarter of the year 2020. Consequently, the cash conversion rate defined as free cash flow divided by profit after tax improved significantly to minus 13% compared to minus 43% a year ago. Let's move on to the divisional view, starting with RVS on slide 14. In the last quarter of 2021, order intake of the rail division was at 714 million euros, a decrease of 18% in total and 16% on an organic basis. The decrease, compared with the previous year quarter, is driven by the following topics. First, the rail industry is still impacted by COVID-19, facing postponements of projects. The lion's share of the shifts occurred in China, high-speed trains and aftermarket, and in India on the passenger coaches side. Second, timing of award-winning vendors in 2021 is more favorable in the second to fourth quarter of this year. Third, order intake in the fourth quarter 2020 was very strong and above 1 billion euros. Last but not least, Kipe did not win a contract in Germany which would have amounted to a mid-double-digit million-euro figure. In 2021, we expect RVS to book significantly more orders in quarter two to quarter four than in the first quarter. As we have already pointed out, Quarter 1 of 2021 will be the weakest quarter in 2021 in that regard, affected by lumpiness of business, which does not always go well with quarterly reporting, as Jan already figured out. The book-to-bill ratio in Quarter 1 consequently came in at 0.89 versus 0.98 a year ago. The order book, on the other hand, increased by 2% year-over-year at 3.6 billion euros. This level provides a good visibility and is the basis for the solid revenue growth we expect for RVS in the full year 2021, driven by the upcoming quarter. And now moving on to revenue and profitability for the rail division on chart 15. In the first quarter of 21, RVS recorded revenues of 805 million euros, which is a decrease of minus 10% year-over-year, organically only minus 7%. Compared with the fourth quarter of 2020, the division kept its momentum and achieved an increase of 4%. RVS recorded declining sales in both OE and the aftermarket business of a similar magnitude in quarter one year-over-year. The aftermarket business in absolute terms declined by around 9%, while the share remained stable at 44% year-over-year. As Jan mentioned before, the trains in service are much more important than ridership levels. Nevertheless, most operators still have a lower number of trains in service since the beginning of the pandemic and therefore currently need less service in spare parts. Having a closer look at the regions, it is noticeable that they are affected to different degrees, strongly depending on the respective COVID-19 situation. Asia, an important market for KB with unchanged future potential, was affected more than in previous quarters due to COVID-19. Especially India and the aftermarket in China posted lower revenues year over year. It is worth mentioning, however, that China in total was flat year over year in Q1 due to a strong mid-core business. Europe contributed roughly 15% of the revenue decline of RBS in the first quarter. It was affected from noticeable declining light rail vehicle business and from lower revenues in the local and the metro business. The European aftermarket business slightly increased in quarter one 2021, as it also did on a full year basis last year. despite the ongoing tense situation for all rail operators. In North America, we recorded an overall decline in both segments, OE and aftermarket. Our North American OE business is still seeing postponements, although passenger numbers are recovering slightly. For example, the metro in New York is now running around the clock again. The billion-dollar support for Amtrak by the U.S. government is helpful, but it will only have a positive impact on our business over the time to come. On the other hand, the recovery in the freight business will as well take some time. We expect that in 2021 overall, RBS revenues should grow solidly, predominantly driven by the OE business. Due to the lead time between order intake and turnover of at least six to nine months, we expect that revenue development in the second half of the year will be stronger than in the first half of the year 21, especially due to the slow development in the very first four. The aftermarket demand going forward should be rather stable, strongly depending on the development of the pandemic going forward. The profitability of RVS in the past quarter developed nicely, despite the noticeable revenue decline. I think this was again a clear example and proof of our countermeasures and the resilience of our business models in Rails. Based on that, EBIT of RVS came in at 145 million euros in the first quarter of 2021. The EBIT margin increased from 17.5% to 18% and the EBITDA margin went up solidly from 20.9% to 21.7%. These margin improvements are also driven by cost measures, which we started to implement already last year, and we are still continuing, and they are still having a positive effect on the quarter. We do believe that our profitability will slightly increase for the full year as overall we anticipated the quarter one situation accordingly. Let us continue with the development of our truck division on site 16. Incoming orders of CVS were again remarkably strong and one of the highlights in the first quarter of this year. At 1.09 billion euros, the overall figure was 52% higher than in the previous year. Organic development of plus 54 was even slightly better. Compared to the fourth quarter 2020, which was already an exceptional quarter in this respect, the order intake even further increased by 9%. Europe and North America could continue their recovery from the severe COVID-19 hit of last year. The underlying demand in both regions should stay strong, but it will presumably be more impacted by turbulences in the supply chain. Freight volumes of industrial and consumer goods in both regions continue to grow in the first quarter. The COVID-19-driven increasing e-commerce trend among customers drives freight volumes and is not expected to face a downswing. In APAC, the development of order intake was again well-fueled by China, but the recovery in Japan was supportive as well. The strong increase of infected people in India has not impacted the order development yet, but is expected to do so. In terms of all the intake in full year 2021, CVS has probably already seen its strongest quarter. We do not assume a trend reversal on a full year basis, but driven by component shortages on the supplier and customer side as well as the lower truck production rates in China from the second half year, we expect a less positive development. The order book of our truck division amounts to 1.47 billion euros at the end of March which is remarkable 32% higher year over year. The order book of CVS therefore reached a value again, which is well above the pre-COVID-19 levels. As a consequence, book to bills stood at 1.22. Let's move on to slide 17. CVS posted 886 million euros in revenues in the first quarter 21, a new record in a quarter. Compared with last year's figures, this is an increase of 21% in line with the organic improvement. In Europe and North America, CVS saw positive development in all channels. The supply situation impacted the division for countermeasures at an overcompensating impact overall. The APEC region also posted a strong revenue growth in Formula One, well supported by China and India. Share of market sales decreased from 29% in the previous year to 24%. This is driven by the extraordinary OE business growth in the first quarter, as in absolute terms, the aftermarket remains rather stable. As mentioned before, in terms of revenue development on a full year basis, CVS should be able to post a very solid increase year over year. strongly depending on potential supply constraints. We expect that our truck division should have a stronger performance in the first half of this year compared with the second half. In that respect, we do believe that the last quarter could have been the best quarter for this year. In the first quarter, CVS achieved an EBIT of €116 million, which is 51% higher than the previous year. The EBIT margin amounted to 13.1% compared to 10.4% one year ago. CVS has thus returned to pre-COVID-19 margin levels despite higher freight costs due to global container and harbour shortages, but compensated by benefits from cost measures and the operating leverage. EBITDA margin improved from 14.6 to 16.8 and in absolute terms by 41 million euros to 149 million euros in the first quarter of 2021. Given all that, what I just outlined, we do think that the full year 2021 should show solid margin improvements of our CVS divisions. Let me continue on chart 18. I would like to give you an overview about our recent ESG activities as this topic is very important for us at Knorr Bremse and me personally. For our group, corporate sustainability means striving for economic, social and ecological goals equally and simultaneously. This is based on the foundation of good corporate governance. We want to create long-lasting values, offer good working conditions, and treat the environment and resources carefully. Northampton recognizes climate change as one of the most pressing challenges of our time. As an internationally operating industrial company, we do consider climate protection as a key corporate responsibility and aim to make a significant contribution to climate neutrality. We are fully on track with our ambitions ambitious climate strategy and are continuously working on improving the energy efficiency of our production using more self-generated renewable energy and expanding perpetuating of renewable energy as a whole. Following the Sustainable Development Goal 5, Gender Equality, Knorr Bremse advocates for gender equality and intends to create more space for this within the company. Within this initiative, we intend to promote women in management roles and support them in their careers. With the addition of Claudia Mayfeld, we have achieved the goal we set ourselves, namely 25% female representation in the executive board. We strive to continuously improve the group quota of currently 13.2% of women in leading KB positions in the near future. KB is well aware of its duty to carry our due diligence on human rights and is committed in its commitment of fulfilling this at all times, including the value chain and our operations. With the establishment of a new human rights policy among the group, we strengthened our efforts in this respect as it combines all human rights related provisions previously contained in various guidelines in one policy, which is being rolled out at KB sites as we speak. One of the global and local care initiatives also contribute immensely to positively impact society and our employees. In the past quarter, the issue of education was a top priority for us, as it has become a major problem for many children worldwide, especially as a result of COVID-19. As already mentioned in the previous calls and outlined by Jan, we plan to anchor ESG targets in the management compensation system to underline the importance to us. The final vote will take place at the annual general meeting of Knorr Bremse next week. Jan has mentioned before how important the topic of good corporate governance is for KB. We believe that we are generally on a good path, for example, with the improved reporting timelines, of last year's annual report by 23 days and results of the first quarter by 14 days, following the German Corporate Governance Codex and the development in the Supervisory and Executive Board of KB. Early reporting is a key project at Knorr-Thames and we have already achieved meaningful improvements with our Q3 report last year, as well as the annual report and the Q1 report of this year. This will continue, which is why we have also brought forward the further two 2021 publication dates from 3rd of September to now 13th of August. I'm also very happy to announce that we are working on a new sustainability strategy for Knorr Bremse, which we will publish in course of 2021. So stay tuned. Last but not least, I would like to give you an update on our guidance. As always, the outlook for 2021 is under the disclaimer of a stable political and macroeconomic environment, as well as no further significant setbacks driven by the pandemic. In addition, the shortage in the semiconductor sector should be kept in mind when looking at our outlook for 2021, as we expect that this topic will also remain with us at least until year end of 2021. At this point in time, We assume that it will be possible to largely compensate for the decreases in revenues in CVS resulting from current supply bottlenecks for electric components of the semiconductor industry within the course of 2021. We will be continuously monitoring the situation. For 2021, on group level, we do confirm our guidance given in March and continue to expect revenues between 6.5 to 6.9 billion euros an EBIT margin between 13% and 14.5%, and an EBITDA margin between 17.5% and 19%. In addition, we expect growth in between 25% to 30%, and we believe that that count should stay within the range of 29,500 to 30,500 employees. Needless to say, of course, driven by potential revenue generation. The scope of Dave's Networking Capital Hour plans are 45 to 50 days, and CapEx, as already said, should be between 5 to 6% of revenue. We have the financial strength to continuously master this crisis well and emerge from it even stronger. One sign of this is the uncompromised continuity of our dividend policy to distribute 40 to 50% of our earnings directly to our shareholders. Therefore, we propose a dividend of 1.52 Euro at the upcoming AGM, which represents the same payout ratio as in the previous financial year pre-COVID. Thank you. I will now hand over to Jan again.