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Schindler Hldg Ag Akt
10/21/2021
Ladies and gentlemen, welcome to the Schindler Conference Call on Q3 Results 2021 Conference Call. I am Paul, the course collaborator. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Marco Knuchel, Head Investor Relations. Please go ahead, sir.
Good morning, ladies and gentlemen, and welcome to our nine months 2021 Results Conference Call. My name is Marco Knuchel. I'm Head Investor Relations at Schindler. I'm here together with Thomas Oetterle, our CEO of the Schindler Group, and Urs Scheidegger, our CFO. As usual, Thomas will start and Urs will then lead us through the financials. After the presentation, we're happy to take your questions, and I would like to ask you to limit yourself to two questions only. Thank you very much in advance. With that, I hand over to Thomas. Thomas, please go ahead.
Thanks, Marco. And good morning, ladies and gentlemen. Also, a warm welcome from me too. In the sixth quarter, it is the sixth quarter in the midst of a global pandemic, and I sincerely hope that you are well and healthy. Looking back at these past 21 months, I believe it's safe to say that we all have and still have to show new levels of resilience and agility at the same time. Our world, our ways of working and communicating have been transformed and the environment we are operating in continues to be fast changing. We face two transformational revolutions at the same time at tremendous speed and with more and more sometimes yet to be revealed interdependencies. Digitization meets decarbonization and both affecting us and our customers in unprecedented ways and equally providing new opportunities to adapt our offering and challenge the current status quo. As one of the responses to these tectonic shifts, we launched Top Speed 23, our program to accelerate digital transformation and product innovation. We will provide a more detailed update on the progress of this program with our 2021 full year results. But one thing I can tell you, the energy in the project teams is accelerating and we are driving at top speed. Now, let me dive into today's presentation and we start with slide two. We see markets recovering at varying speed and COVID-19 related restrictions continue to have negative effects in Asia Pacific and Latin America. The pandemic has introduced more volatility and has made our world far less predictable. Equally, we are faced by accelerated economic and social changes globally. One of those is the events unfolding in the Chinese property market. While Schindler does not have any material exposure to Evergrande nor Fantasia or others, we are keeping a close eye on the developments. Our exposure with Chinese customers is well diversified with a healthy mix of government and privately owned companies. The majority of our ongoing projects are pre-financed. Nonetheless, looking at the Chinese construction sector overall, we have been observing prolonged execution time in the most recent past. One big challenge of the past nine months involves global supply shortages with disruption at suppliers all over the world and delays in construction activities. Add to that rising cost for material and components and the shipping resulting from overbooked container ships, congested ports and shortages of truck drivers against the backdrop of rapidly rebounding consumer demand. This cost inflation and supply chain issues have negatively affected our revenue as well as our operating results in the third quarter. Year-to-date results, however, are back to 2019 pre-pandemic levels. Let me now hand over to our CFO, Urs Scheidegger, for more financial details. Urs, over to you.
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