Mercedes-Benz Group AG (MBG) Earnings Call Transcript & Summary

[Interpreted] Dear shareholder representatives, shareholders, ladies and gentlemen, on behalf of the Supervisory Board and the Board of Management, I would like to welcome you all and hereby open the virtual Annual General Meeting of Daimler AG 2021. As Chairman of the Supervisory Board, I hold the chair in accordance with the articles of incorporation. Ladies and gentlemen, we all hoped that the restrictions associated with the COVID-19 pandemic would be over by spring 2021. Unfortunately, our hope has not been fulfilled. Against this backdrop, the Board of Management, with the approval of the Supervisory Board, has decided to hold the 2021 Annual General Meeting, in accordance with the provisions of the COVID-19 Measures Act as amended on the 22nd of December, as a purely virtual Annual General Meeting without the physical presence of shareholders or their proxies. Only the company's proxies will be present on site. [Foreign Language] [Interpreted] The broadcast will also be generally accessible on the Internet. For reasons of caution which continue to apply, we've also limited the number of Board members here in person today to just a few people. I would like to welcome Ola Kallenius, Harald Wilhelm and Renata Jungo Brüngger from the Board of Management. From the Supervisory Board, I am joined by Michael Brecht, Vice Chairman of the Supervisory Board. The other members of the management and Supervisory Board's observe the Annual General Meeting via a virtual channel and can exchange [ information ] with each other and with us if necessary. I would also like to present notary, [ Dr. Sunner ], who is also present in this room. He will certify the Annual General Meeting. Ladies and gentlemen, before we move on to the agenda, we would like to honor the diseased this year, as usual. We remember the employees and [ recoveries that have ] passed away since the last Annual General Meeting as well as all those diseased who felt connected to our company. Ladies and gentlemen, although this is already our second virtual Annual General Meeting, I would like to give you a brief overview of the further process of the event. Please forgive me that in German I'll use the male gender of shareholders. I use it as a gender-neutral term for reasons of brevity. Of course, this always includes all genders. Unfortunately, a general debate is not possible under the current circumstances. Instead, registered shareholders and their proxies were able to submit questions on today's agenda via our e-service until the end of the 29th of March. Some submitted questions at the very last moment, which stressed our employees. We will address the questions submitted in due time following the report by the Board of Management. To provide you with comprehensive information in advance of the Annual General Meeting, we've published the main content of the speech by the Chairman of the Board of Management and my speech in advance. Insofar as shareholders and their proxies have made use of our offer to submit video messages, these will be available to registered shareholders and their proxies in e-service until the end of this Annual General Meeting. However, they will not be broadcast in this Annual General Meeting. After answering questions, we will vote on all agenda items. As explained in the notice or convocation to the Annual General Meeting and the registration forms, registered shareholders and their proxies can still revoke and change their postal votes as well as authorizations and instructions to the proxies appointed by the company on today's date until the start of voting via the e-service. I will announce the start of voting in advance. After the end of voting, the Annual General Meeting will be briefly interrupted to determine the results. Finally, I will determine and announce the voting results. Shareholders who've exercised their voting rights in person or by proxy have the opportunity until the close of the Annual General Meeting to submit objections to the notary's minutes via the e-service for shareholders. The notary's access to this tool and any objection [ sent ] is insured. So much for the process. Ladies and gentlemen, I would now like to talk about presence of this Annual General Meeting of the share capital in euros divided into shares. We have 556,645,233 shares that are represented with 1 vote by the proxy of the company who is here in the virtual Annual General Meeting. This corresponds to 59 -- 51.09% of the share of the registered share capital. In addition, we have 665,458,517 shares or 6.12% of the postal votes of the registered share capital. So a presence with the shares and postal votes thus is 612,103,750 shares, which corresponds to 57.21% of the registered share capital. The list of attendees is available here on site and will also be available for inspection by shareholders registered for the Annual General Meeting, in e-service; and will be updated until voting begins. Due to the virtual format, only the proxies of the company and the shares they represent are listed, together with the number of shares for which postal votes were cast. Ladies and gentlemen, 2020 was the most challenging year for our company during my term as Chairman of the Supervisory Board. The pandemic and its consequences became a stress test for many companies and many industries. Daimler took effective countermeasures at all production and administrative locations at an early stage. Our top priority was and is to protect the health of our employees. In addition, we had to continue to drive forward the transformation to sustainable emission-free mobility at full speed. In addition, expectations for growth rates in the automotive sector weakened, while the risks posed by political conflicts to the free movement of goods and merchandise had to be kept in mind. Last but not least, awareness of sustainability, particularly climate protection, has grown significantly in all of our main markets. Accordingly, our company has revised and in some cases also redefined focal points of its strategy. In close consultation with the Supervisory Board, the Board of Management took timely measures to safeguard liquidity and reduce costs without relinquishing [ its thesis ] on the technological fields of the future. I think our company passed this stress test with flying colors. Allow me today to take a critical look not only at the past year and the challenges for the future but also at the last 15 years of my tenure on the Supervisory Board. After all, these experiences are essential for our actions today. Let's go back to 2007. In October 2007, we invited our shareholders to an Extraordinary General Meeting. By the way, this was my first Annual General Meeting as Chairman of the Supervisory Board. The only item on the agenda for the administration was the sale of our shares in Chrysler with the renaming of the company from DaimlerChrysler AG to Daimler AG. The sale was a difficult admission for everyone, especially for the Board of Management but also for the Supervisory Board. Why? Entrepreneurial decisions always concern the future and are thus exposed to the risk of being wrong. That is why entrepreneurial action also requires the courage to correct misjudgment as quickly as possible. Daimler was in the process of refocusing on its strength when the financial crisis hit us with full force in 2008, also because we were not prepared for such crisis. In 2009, the foundation was then laid for the growth path for future years. The goal was to overtake the competition in terms of sales and profitability by 2020. This was to be achieved with an unprecedented model initiative and simultaneous, in some cases painful, rationalization measures. The new S-Class celebrated its premier in 2013 in a new design language and was a full success. The vehicle heralded a new era and the beginning of the upswing for Daimler. I still remember a conversation with Dieter Zetsche in which I told him that, if the new S-Class was a flop, 2 people would have to go, he and myself. He replied me, "I understand, but why you?" I replied, "Because I supported you in this strategy." Following years then showed a steady upwards trend. The goal proclaimed by Dieter Zetsche and supported by the Supervisory Board to become the largest premium manufacturer in terms of sales was the driving force behind this in a positive market environment. And so it came about that in 2017 we had the best result in the company's history with over EUR 10 billion in EBIT. The strategy of focusing on growth was a complete success. Based on the available forecasts, the Executive Board or the Board of Management expected the same growth rates for the following years as before. The Supervisory Board followed this assessment already in 2018. However, there were the first signs of a weakening automotive market. In 2018 and '19, it also became apparent that our costs had risen at least at the same rate as our turnover. The critics who say that this should have been seen much earlier did not say this in 2017, by the way. In hindsight, we have also learned our lessons. With the knowledge we have today, some things would certainly have done -- been done differently, but we all know how difficult it is to pull the brakes when everything is going well. We also know that it is very difficult to implement serious changes if there is no suffering beforehand. Added to this at the time were the challenges posed by the transformation of our industry. Electrification, digitization, automated driving and connectivity necessitated considerable expenditure for the future. Positive results could only be achieved with ICE vehicles. Vehicles with electric drives hadn't -- didn't produce the contribution margins that we had been used to by combustion engine vehicles. The company has [ drawn ] the necessary lessons from the sum of these experiences and implemented them from 2019 onwards and increasingly in 2020. This includes focusing on our DNA and our core business as a premium manufacturer as well as concentrating of our product portfolio. It is also right to focus on earnings and cash flow, not just on sales figures, because this makes the company less vulnerable and more crisis proof in the long term. We are committed to the goals of the Paris treaty without any ifs or buts and have defined ways to achieve them at an early stage with our Ambition 2039. We will produce our passenger cars in our plants in a carbon-neutral manner as early as in 2022. What we need beyond that is a responsible balance of ecological, social and economic goals. This also guides our strategy. Within a framework of a sustainable business strategy, it wouldn't be legitimate to focus exclusively on economic objectives. We must also show why our strategy is ecologically and socially sound. It is becoming increasingly clear that companies are required to demonstrate their contribution to social well-being in almost all markets in which they are active. Otherwise, they will lose acceptance in society, be it among customers, investors, politicians or the general public. The bottom line is that there can no longer be any doubt. Our goal must be a sustainable business or, in the long term, out of business. This is why it is also our task to play a pioneering role with regard to product, productions and sales. This said and underpinned by the necessary expenditures for future technologies, the lowering of the break-even point through cost reduction and the reduction of investments is indispensable to make the company more crisis proof in the future. The Supervisory Board, together with the Board of Management, has discussed as in previous year the geopolitical challenges, especially the tense relationship between the U.S.A., China and Europe; and the potential risks for Daimler. Despite all the risks, we still believe that our company must be present in the world's largest automotive markets. Ladies and gentlemen, our founding fathers established the era of the petroleum-based automobile. Now that this fossil fuel era is coming to an end, we are shaping a new era of carbon-neutral vehicles. Mercedes is to become the leading brand for electric mobility and vehicle software. When I see where our company is today and what decisions we have made recently, I'm satisfied that I've been able to play my part. Let us turn to the dividend. Ladies and gentlemen, the Supervisory Board and the Board of Management are proposing a dividend today of EUR 1.35 per share. This is in line with our basic policy of distributing approximately 40% of the annual profit to shareholders. The dividend proposal also takes into account a careful and prudent consideration of the interests of all shareholders, to which the company is committed; as well as the current business situation, in particular liquidity and business prospects. And can I add here? Since this came up in the German media. There is the assumption that the dividend will be paid out of tax money that we have received as support or aid during the corona crisis. This is absolutely wrong because, the shorter hours, the allowances, that is paid for by the employers and labor representatives. I just wanted to make sure that you understand this now, but I'll return that -- as we get to the answers and questions later. Now ladies and gentlemen, in 2020, the Executive Board and the Supervisory Board again had to deal with antitrust matters and proceedings in connection with these diesel emissions. In all proceedings in all countries where these cases are pending, the company has fully cooperated with the authorities and ensured transparency. The Supervisory Board was continuously informed about relevant developments. 6 members of the Supervisory Board dealt with the matters, particularly intensively in the legal committee, the Legal Affairs Committee, of the Supervisory Board. The truck cartel case, which had already been closed by the authorities, continued to occupy the Supervisory Board against the backdrop of pending cartel damage claims by customers. The Supervisory Board also dealt with the progress of the ongoing cartel litigation in connection with exhaust gas purification technologies. As in previous years, the Supervisory Board had an independent law firm examine whether and to what extent former or current members of the Board of management are liable in connection with these cartel matters. The Supervisory Board has taken appropriate measures to counteract any risks of limitation. In addition, the Supervisory Board has another independent expert, Professor Habersack, who examined whether the Supervisory Board fulfilled its duties in this context. In his opinion, Professor Habersack comes to the conclusion that the Supervisory Board has fully complied with its duties. You will find Professor Habersack's statement on the Daimler homepage, under the statement of the administration of the countermotions to today's Annual General Meeting. In Autumn 2020, Daimler succeeded in taking a significant step towards addressing the issue of diesel emissions. The company reached settlements with American authorities and customer plaintiffs to end the proceedings in the U.S.A. The investigations by the American authorities have dragged on for many years due to the technical complexity of exhaust aftertreatment. The authorities came to the opinion that the company had violated regulations of the United States. Even under the settlement, though, Daimler maintains that the technical functions concerned were within the legal framework. Board of Management sought advice from several independent law firms in reaching its decision on the settlements. The Supervisory Board already commissioned an independent law firm in 2016 to continuously monitor and evaluate the proceedings. It was regularly informed in detail by its legal adviser and the Executive Board. It has -- had examined whether the decision of the Board of Management and the possible approval of the Supervisory Board within the framework of the given possibilities, that is acceptance of the settlement or rejections at legal proceedings in the United States, were in the interests of the company's well-being. Based on the historical experience with legal proceedings in the United States and among others, all experts unanimously came to the conclusion that a settlement was in the best interest of the company and fully covered by the business judgment rule. The Legal Affairs Committee of the Supervisory Board and the Supervisory Board concurred with the Board's decision based on their own assessment of the settlement proposals and various expert opinions and also after an intensive discussion with independent legal counsel. And also the Legal Affairs Committee was assigned to -- by the United States authorities the task of self-monitoring compliance with the settlement obligations. That was an expression of confidence by the authorities. And at the same time, Daimler has further developed a technical compliance management system already established in previous years in order to identify and prevent technical problems as early as possible in the future. The system has been certified for emissions by an independent auditing firm and is rated as exemplary by the American authorities. The Supervisory Board is vigorously pursuing the examination of Board of Management responsibilities. It is having an independent law firm examine how the diesel issue could have come about and where the Board members violated duties and company law. The audit is ongoing. It is carried out with great care in order to ensure that the results can be used later. As soon as the results are available, the Supervisory Board will decide on any measures to be adopted. The Legal Affairs Committee of the Supervisory Board as well as the Supervisory Board itself have checked with a legal adviser and ensured there is no risk of limitation period. Please be assured that the Supervisory Board will vigorously pursue all necessary measures under the law. Ladies and gentlemen, the system for the remuneration of the Supervisory Board was approved by you at the 2017 Annual Shareholders' Meeting. The only new feature is that we have established a Legal Affairs Committee in the summer of 2019. And with the exception of the remuneration for its members and chairperson, of the Legal Affairs Committee, that is, the remuneration system is to remain unchanged. There was some confusion. This is why I'm [ repairing that ]. The Legal Affairs Committee deals with the main legal proceedings. And there are sometimes very complex facts and considerations and detail in preparation for referral to the Supervisory Board, and the Legal Affairs Committee has performed these tasks comprehensively and with a high expenditure of time since 2019. In the settlements on the subject of diesel emissions with the American authorities and customer plaintiffs, the committee's tasks were once again substantially expanded. It now also has to monitor compliance with the conditions imposed by the company in settlements. It is therefore appropriate to adjust the remuneration for membership and chairmanship of the Legal Affairs Committee to the increased scope and -- of tasks and time required. This is also in line with the recommendations of the German corporate governance code to appropriately take into account higher time expenditures of chairpersons and members of committees of the Supervisory Board when determining the remuneration. I now come to the personnel matters of the Board of Management and Supervisory Board. At the last Annual General Meeting, I already reported on the reappointment of Hubertus Troska as a member of the Board of Management responsible for Greater China, with effect from the 1st of January 2021, for further 5 years. No further personnel decisions regarding the Board of Management have been made since then. With the conclusion of today's Annual General Meeting, Petraea Heynike, Dr. Jürgen Hambrecht and myself will be leaving the Supervisory Board. May I express our great thanks to Petraea Heynike and Jürgen Hambrecht for their commitment to the company and their excellent contributions over the past years. And I wish them the very best. You have been a great support to us in the Supervisory Board. Based on the recommendation of the Nominating Committee, Elizabeth Centoni, Chief Strategy Officer and general management, applications, responsible for strategy and emerging technology and incubation of Cisco Systems, Inc.; Ben van Beurden, CEO of Royal Dutch Shell plc; and Dr. Martin Brudermüller, Chairman of the Board of the Executive Directors of BASF SE, will be proposed for election for the first time under today's agenda item 6. With them, we have succeeded in winning 3 outstanding leadership personalities for the succession, candidates who with their wide-ranging management experience and focal points of knowledge will cover essential fields of our challenges for the future. The candidates will be elected for a term of 4 years instead of the legally permissible maximum of 5 years. In this way, we want to take into account the expectations of institutional investors, in particular the requirements of modern corporate governance. All 3 candidates will now briefly introduce themselves to you. Please start the [ next ].

Dear shareholders, my name is Liz Centoni. And I am the Chief Strategy Officer from Cisco, where I partner with our executive leadership team to drive the company's strategy. I also lead our emerging technologies and incubation group, where our engineers work on incubating new business opportunities and emerging solutions. I am a voting member of our Cisco investment group, which directs our efforts with start-ups and the global venture community. I've been at Cisco for more than 20 years, in multiple software engineering, operations and general management roles, transforming large-scale and complex businesses, including IoT, cloud and compute. I'm an engineer at heart. I get excited and enjoy designing, building and deploying products. And for the last 12 months, I've been doing all of this from my home in California, where I live with my husband and our dog. Our kids live in other cities, so we only have 2 people competing for bandwidth as we work from home. To me, Daimler is an iconic brand, and the cars were aspirational for me growing up. I admire the commitment to quality and focus on customers. The journey to emissions-free transportation and Daimler's EV strategy, combined with its manufacturing and delivery performance across all areas of its business, is remarkable. I believe I can contribute insights, knowledge and expertise to Daimler with my experience in IoT, connected car, edge intelligence and cloud. And with my position in the evolving technology landscape, working across strategy and engineering with many industries, governments and start-ups, I would be delighted to help Daimler continue to succeed, lead and innovate. And I would be very honored to have your confidence in me today as a member of the Supervisory Board. Thank you.

Dear shareholders, good morning. My name is Ben van Beurden, and I am the CEO of Royal Dutch Shell. I joined Shell in 1983 after graduating as a chemical engineer. In 37 years with Shell, I have worked in liquefied natural gas, refining and chemicals. And I have been involved in operations management, business development, marketing and major corporate transactions. I've served on the executive committee since 2013 and as a Chief Executive for more than 7 years. During my career, I have lived overseas for 20 years in places like the Sudan and Malaysia, the U.K. and the United States, but I'm currently back in my native Holland, where I live with my wife and our youngest 2 children. My elder children are students living away from home. As an engineer at heart, I've always admired Daimler. It's a company that stands for excellence and innovation and quality. And it has always been a pioneer. And that pioneering spirit continues with new drivetrains, new forms of energy and new customer experiences. Shell too has a pioneering past and, as it plays its part in the global energy shift, a pioneering future as well, so I believe I can bring insights, knowledge and expertise to Daimler on the changing energy landscape but also from my international business experience working across many industries, with governments and international institutions. I would be delighted to help Daimler continue to succeed, lead and pioneer. And I would be honored if you would express your confidence in me today as a member of the Supervisory Board.

[Foreign Language] My name is Martin Brudermüller. [Foreign Language]

[Interpreted] Thank you very much. I think that was very interesting, for all shareholders to see the candidates personally. It was a good idea that they could introduce themselves, and we did it virtually. And in the future, we will continue that tradition. Ladies and gentlemen, let's come to an item of the agenda that is not to be decided upon, as this is to be decided by the Supervisory Board. And this is the election of the follow-up of the Chairman of the Supervisory Broad. At its meeting in December 2020, the Supervisory Board unanimously decided to propose Dr. Bernd Pischetsrieder for election as Chairman of the Supervisory Board at the constituent Supervisory Board meeting following the conclusion of today's Annual General Meeting. I'm pleased with this decision of the Supervisory Board because Bernd Pischetsrieder is a manager with automotive experience like no other. As an engineer, he has closely accompanied and supported the Board of Management in all technological challenges in the past. Added to this are his extensive experience in co-determined companies and his balancing personality. With the election of Bernd Pischetsrieder, the Chairman of the Supervisory Board will be in the best hands. Ladies and gentlemen, the agenda with the proposed resolutions was published in the Federal Gazette on the 19th of February 2021 with the convening notice of the Annual General Meeting. Since that date and today, the convening notice has also been available on the company's website together with other documents to be made accessible. The countermotions and the election proposals have been made accessible while also published on the website. I will come back to this later on during the [ votes ]. The annual financial statements of Daimler AG, the consolidated financial statements and the combined management report of the company and the group for the 2020 financial year were audited by KPMG AG Wirtschaftsprüfungsgesellschaft Berlin and received an unqualified audit opinion. On February 17, 2021, the Supervisory Board approved the annual financial statements of Daimler AG and the consolidated financial statements following its own review. The 2020 annual financial statements of Daimler AG are thus adopted. The Audit Committee and Supervisory Board regularly review the quality, the quality assurance systems and the independence of the auditing company. Based on this analysis, we are today proposing KPMG again as auditor for the 2021 financial year. KPMG changes the auditors responsible for the audit of Daimler AG, in accordance with legal requirements, after a maximum of 7 consecutive years. Accordingly, the lead partner responsible in recent years will be responsible for the audit for the 2020 financial year for the last time. Provided that KPMG AG Wirtschaftsprüfungsgesellschaft is elected by today's Annual General Meeting as auditor for 2021 financial year, [ Alexander Boch ] will be the auditor in charge for -- from the review of the quarterly financial statements as of 31st of March 2021. He will also be responsible for the audits of the annual and consolidated financial statements of Daimler AG for the 2021 financial year. A selection and proposal process for a new auditing firm will take place for the first time, in accordance with the EU statutory audit regulation, at the latest for the appointment of the auditor for the 2024 financial year. For the detailed report of the Supervisory Board on the past business year, please allow me to refer you to the report of the Supervisory Board starting on Page 14 of the annual report. In the annual report, you will also find the remuneration report and the corporate governance statement. In summary, I would like to express my firm conviction that our company is excellently positioned for the future. We have an excellent Board with an outstanding Chairman. All essential steps to be able to master the technological challenges of the next 2 years have been initiated. The necessary cost-cutting measures have been defined and their consistent implementation is underway. And we have initiated the restructuring of the company, the formation of 2 powerful independent Daimler companies. It was extremely important to me that this essential transformation be initiated during my term of office. A decision for such a significant structural change is never taken lightly, but after thorough analysis and examination, the fact is that the transformation of our industry requires speed and undivided attention to innovation now more than ever before. Mercedes-Benz and Daimler Truck, in the future listed on the stock exchange and with Daimler holding a minority stake in Daimler Truck, are to put all their energy into developing their own business, with its specific challenges. Wherever possible, the management bodies of both companies at the future Mercedes-Benz AG and Daimler AG are to be identically staffed, and the administrative divisions are to be merged. With a clear focus on commercial vehicles on the one hand and premium passenger cars and vans on the other side, we are creating more economically successful companies for the future and thus also job security. For you as shareholder of Daimler AG, this means that you will also receive Daimler Truck shares with the implementation of the planned new structure. We are sure that this measure will also lead to the reduction of the so-called conglomerate discount, which is certainly in your interest as shareholder. It is planned that you, dear shareholders, will decide on this important structural change in the autumn of 2021 at an Extraordinary General Meeting. I'm certain that Mercedes-Benz and Daimler Truck will be even stronger as independent companies. They will be able to realize their full potential. And I am convinced that we will be able to create more value in this way for customers, employees and shareholders. Ladies and gentlemen, your company's products and services are in high demand across all major markets and across all business sectors. And just as importantly, our company has proven that it is able to generate the capital needed to finance the ongoing transformation itself. My wish for our company is that we live our corporate values; that we are aware of our responsibility in society; that we become even more involved in the social discussion on the balance between ecology, economy and a free society; that we continue to make our contribution to technical progress and consistently pursue the path which we have taken with regard to electrification and digitization; and that we consistently implement the defined strategic building blocks. It must be clear to everyone in the group that we have to be at least as fast as our old and new competitors. We have made great progress in 2020. There are many good reasons to be confident that the measures we have taken will strengthen our company for the future. I would like to conclude with a word of thanks. It was an honor for me to be elected in 2006 to the Supervisory Board of our company, which I joined in 1976. The confidence of my colleagues on the Supervisory Board in electing me as Chairman in 2007 spurred me on even more to do my best for our staff. I would like to thank you, shareholders, for the trust you have placed in me and for your understanding that I have had to resort to restrictive measures from time to time as Chairman of our general meetings. I was pleased about many of your questions at the general meetings, surprised about some, annoyed about some, which then led to spontaneous statements on my part and brought life into the hall, as it is nicely put, by the way, to the chagrin of our legal colleagues in the background. It is up to you to judge my work as Chairman of the Supervisory Board in these 14 years. As the saying goes, by their deeds, you shall judge them. The Board of Management will now report to you on the past financial year and give you an outlook for the future. Ola, you may have the floor.

[Interpreted] Ladies and gentlemen, we have delivered. And we have shown that we can set the pace when it comes to change processes, but there is still so much to do. Think of the development of alternative drives, the use of new materials, recyclability and safety standards. We will develop the learning car. Communication will play a significant role: web in the car and car in the web. I subscribe to each of these sentences, but the statement is not mine. It was Professor Jürgen Hubbert who said it in the year 2003 just before he retired. In January, he passed away, aged 81 years. We had to say goodbye to a good friend, a great management personality, an adviser in high regard until the end. He has been and will always remain in our memories, "Mr. Mercedes." All the issues that Jürgen Hubbert addressed almost 20 years ago are now reality at Daimler. And what's more important, today, we are working on the technologies that will define our mobility at our company over the next 20 years. We are now preparing the ground for a successful future. I would like to illustrate this in a moment with 5 current vehicles. They showcase our strategic focus areas, notably electric mobility, vehicle software and automated driving, but before I take you there, let's take a look at the past fiscal year, where we can draw one thing in particular, a great deal of confidence. 2020 was a year that none of us will forget in hurry. It demanded a lot from all of us in private and in business. Despite the greatest adversities, we sold 2.8 million vehicles, generating EUR 154.3 billion worth of sales. Our earnings increased by 53% to EUR 6.6 billion. Adjusted for special effects, it was EUR 8.6 billion. Free cash flow in the industrial business increased to EUR 8.3 billion. Our dividend has long been calculated according to a clear system. Manfred Bischoff just explained it. This year, our proposal reads EUR 1.35 per share. These figures indicate what the Daimler team achieved in the past year. My thanks to all my colleagues. You did a fantastic job. The year 2020 has shown what this company is able to accomplish, and in the first quarter of 2021, we can continue the positive trend. At Mercedes-Benz Cars & Vans, we are temporarily faced with supply shortages for semiconductors. Unit sales and revenue should nevertheless be above the previous year level, thanks to a tailwind from China and a strong product mix. Based on strict pricing and continued tight cost management, we are also confident about profitability. For trucks, order intake is very encouraging, particularly in Europe and the United States. Although the pandemic has a major effect in the bus and chassis business, the unit sales in quarter 1 will probably be on the prior year level. And when it comes to profitability, we expect a improvement here. We have a good product mix, the price consistency and stringent cost management. Moreover, the semiconductor shortage is affecting the truck supply chain and bus supply chain. We [ expect ] the situation closely and are in close exchange with our suppliers. We are consistently continuing on our path with a clear plan because we also used the past year to do just that. In all our business units, we realigned our strategies. Their implementation is accelerated with a newly planned structure of our company. To this end, we launched the Focus project in February this year. As Manfred Bischoff explained, we are aiming to make our 2 industrial divisions independent of one another: passenger cars and vans on the one hand, trucks and buses on the other hand. In this context, we intend to float Daimler Truck on the stock exchange. Daimler AG is thus to become 2 independent companies. Why are we doing this? For more speed in the transformation; for a full focus on the respective customers; for long-term job security in 2 strong companies; and for you, dear shareholders, in particular. We will thus highlight the value of the company more clearly and further increase it, and that's what dividing up the company is all about. And that is precisely why the Board of Management and Supervisory Board are convinced that it is the right thing to do. It makes sense to take this step now from a position of strength. We are convinced of this step and we are soliciting your approval. We want to actively shape the future of our company, and with the 5 vehicles, I would now like to demonstrate to you what this future will look like. Shall we move over there? Let's go. Let's start with the Mercedes-Maybach S-Class. It is representative of our claim to build the most desirable cars in the world. The S-Class has always defined automotive modern luxury. The Mercedes-Maybach crowns it. Once again, our engineers were faced with a major challenge to make the best car in the world even better, and they did it again. As Mercedes-Benz, we interpret modern luxury as an expression of supreme comfort, timeless aesthetics and sustainability. Next year, we are therefore launching the Maybach S-Class also in plug-in hybrid version to our most important market, China. Quality, comfort, design. In each of these areas, we set standards with this car, but the Mercedes-Benz class is parked here for another reason too. With our new systems in the S-Class, we take a quantum leap in automated driving. What does it mean in specific terms? Well, there are 5 stages on the way to the self-driving car. Level 1 means some individual assistance systems support the driver. At level 2, the vehicle keeps its lane, brakes and accelerates. However, the person behind the steering wheel keeps an eye on the traffic and remains in-charge. And now we are taking the historic step to level 3, which means that the car temporarily does the driving completely on its own, and the person behind the wheel is allowed to turn away from the traffic during this time. You know all of this is not just a question of technology. Legal issues must also be settled. We expect the S-Class to drive in highly automated mode with DRIVE PILOT in the second half of the year; first, on the autobahn in Germany and initially up to the legally permitted speed of 60 kilometers per hours, in other words, in stop-and-go traffic or traffic jams. And we go one step further. The new S-Class even masters level 4 for parking. This means the car may drive without occupants. With the INTELLIGENT PARK PILOT, the S-Class is prepared for fully automated parking. The necessary infrastructure in the parking garages is provided by our partner Bosch. As soon as the legal framework permits, the car will in future be able to move driverlessly to a reserved parking space by a smartphone command. And the S-Class is the world's first production vehicle with the necessary technology onboard. Progress in automated driving is driven in particular by the combination of a large number of sensors. This includes, for example, a lidar sensor in the front. The car uses lasers to detect objects in 3D. Combining camera, microphone, radar and ultrasound, the vehicle obtains a detailed overview over its surroundings. And we rely on redundant systems. If one system fails, another takes over, for safety is a top value at Mercedes-Benz. Our vision remains accident-free and emission-free driving, and we are taking the next step towards the latter too with this car. It is still in disguise. On April 15, we will present the EQS to the world, the first all-electric luxury sedan by Mercedes-EQ. Exclusively for you, we have the EQS here already today because this car shows how we are transferring the Mercedes claim to the electric world. The EQS not only drives emissions free. It is also produced in our CO2-neutral factory in Sindelfingen. It covers a range of up to 750 kilometers, according to WLTP. And with a Cd value of just 0.20, the EQS has the lowest aerodynamic drag of any production vehicle in the world. And you can charge power for up to 300 kilometers of range in just 15 minutes. In terms of luxury, comfort and safety, the EQS performs at S-Class level. And in the interior, you can expect an experience which is unprecedented in an automobile. Last year, I presented the latest MBUX generation to you. In the EQS, state-of-the-art software is combined with forward-looking hardware, a combination that revolutionizes the design and the operations. The result is the MBUX Hyperscreen. Action, please. [Presentation]

[Interpreted] With a width of 141 centimeters, the hyperscreen is not only the largest interface in a Mercedes to date, it is also by far the most intelligent: impressive design, radically easy to use and extremely adaptive. With artificial intelligence, the system adapts individually to the users. More features of this car will be revealed live at the digital world premiere. I will be delighted if you join us. The EQS is the first model on our new electric platform. This platform is the key to sustainable automotive luxury with long range, first-class comfort and impressive dynamics. As you can see, we are planning another electric sedan on the platform, the EQE; also 2 electric SUVs. The next milestone then is our future platform for the compact and mid-size classes. It will form the basis for numerous electric models. At the same time, we are taking complexity out of our internal combustion engines range. There the number of variants will decrease significantly by 40% by 2025 and by 70% by 2030. The transition to purely electric drives may happen much faster than previously assumed. Technological development is accelerating. Demand is rising, and we are ready. The EQA shows just how fascinating and practical electric mobility is for everyday use, and that's what we are talking about now. With the EQA, we widen the appeal of electric mobility by Mercedes for a broader audience. It has everything you would expect from a compact SUV, attractive design, comfort and variability. And in addition, it offers what we call electric intelligence. What does this mean? With navigation in an electric car, it's not just the distance between A and B that matters. The calculation also takes into account the batteries change of -- start of charge, the charging infrastructure, the topography, the traffic situation and weather data. On this basis, MBUX suggests the most time-efficient route, including charging stops. The system can draw on the world's largest charging network with more than 500,000 charging points in 31 countries. This also includes the IONITY charging stations. Together with partners, we have built up a fast-charging network in Europe. And as of this year, Mercedes me Charge, you can always charge your cars' batteries with green energy. We ensure that enough electricity from renewable energies is fed into the grid for this purpose. For many of our customers, it is important that their Mercedes always runs on clean electricity and rightly so because an electric car is only as green as the electricity it is charged with. To ensure that even more people drive sustainably in the future, we need an efficient public charging infrastructure. The expansion must keep pace with the manufacturers' electric ramp-up. For example, to meet the EU Commission's CO2 targets, Europe needs 3 million public charging points by the end of the decade. Today, we do not even have 1/10 of that. In Germany alone, 2,000 public charging points would have to be connected to the grid every week. At the moment, we are not even at 200 per week. This development must be accelerated. Daimler will contribute further as part of the automotive industry. For example, we will continue to upgrade the IONITY network. I am convinced that, if industry and politics work hand in hand, we will achieve progress together. In doing so, we should not focus on banning what already exists. We should enable the new, and new means electric also in the vans sector. With a range of more than 400 kilometers. The [ EQ vehicle ] has a broad range of applications for most diverse customer requirements. Sustainability is more and more the determining factor of purchase decisions. The demand for electric vans will continue to rise. In 2020, sales have more than tripled. We are the European market leader for medium and large electric vans, each with a market share of over 40%, and we intend to speed up further. Before the end of this year, we will unveil the concept vehicles of the electrified Citan and the T-Class. By the middle of the decade already, the majority of vans for urban delivery services may already be electric. That's why we are focusing our engineering resources on electric drive systems also in the vans sector. For example, we are investing in the new Electric Versatility Platform, the basis for the next generation of the eSprinter. With it, we can offer the greatest possible [ flexibility ] in the future. This is made possible primarily by the scalable battery module in the underbody. For different applications, a small, medium or a large variant is available. In combination with the standardized electric front and rear modules, they enable almost any conceivable body variant. As with our passenger cars, the focus in vans is clearly on battery-electric drive. Trucks, on the other hand, rely on 2 all-electric concepts for CO2-neutral driving: battery and fuel cell. Let's have a look at this now. The eActros is representative of our progress in battery-electric trucks. Series production will start this year. The eActros will have a range of well over 200 kilometers. This makes it particularly suitable for heavy distribution transport in the city. For longer, plannable distances, we are launching the eActros LongHaul, with a range of around 500 kilometers. And we plan to have it ready for series production in 2024. For trucks, the following applies. The lighter charges and for shorter distances, battery technology makes more sense. For heavier loads and longer distances, the fuel cell will be used more likely. We intend to take the fuel cell truck to series production in the second half of the decade. Last year, we presented the Gen H2 truck. With it, we show what goals and demands we associated with the topic of hydrogen. We are developing a CO2-neutral truck which performs as well as a conventional truck. It will offer a range of 1,000 kilometers and more. We are convinced that this can succeed, but there is another prerequisite for the success of the fuel cell in long-haul trucks, an intelligently developed network of hydrogen filling stations along the main transport access. Be it fuel cell or battery, with our sustainable drives, we are setting standards in trucks. This also applies to a technology that can save lives, Sideguard Assist. The take rate for our Sideguard Assist in Germany had already exceeded 80%. Since mid-March, we have been the world's only truck manufacturer to offer an active side guard assistant. This means that it can not only warn drivers of people during a turning maneuver, but it can also initiate automatic braking. We are confident that we can prevent even more accidents and save more lives with the enhanced system. A further positive contribution to life at the city can also be made by electrifying our buses. The eCitaro has been available since the end of 2018. With the eCitaro articulated bus, we now have a further and larger alternative to offer. Both variants can be powered by an innovative solid-state battery. Many transport companies already have electric city buses by Daimler in operation, and now we want to show you how they look in action. Action, please. [Presentation]

[Interpreted] We have now seen 5 different vehicles. They have one thing in common: cutting-edge technology. It is the key to decarbonization and digitalization of the automobile. However, the transformation of our company is a challenge not only in technical terms but also in financial terms. That is why it will always involve tough decisions. We will continue to work on our cost structures. Even in times of fuller coffers, we will spend money cautiously. Yes, we are recruiting 3,000 new software engineers. After all, vehicle software is a key component of our strategy, but overall we must and will also continue to reduce our personnel costs. We do this responsibly by focusing on fluctuation and fair solutions, for example, on mutually voluntary agreements and severance payments as well as appealing terms for the transition to retirement. We are aware of the great responsibility we have towards our colleagues. This also applies to the determined restructuring of our sites. On the long run, it benefits no one to work in a plant with a great tradition. The point is to work in plants with a great future. Along this line, we worked with the works council just this month to realign 2 of our oldest plants, Untertürkheim and Berlin-Marienfelde. We at Daimler are driven by team spirit and confidence, and we are convinced of our team. It has everything we need for the challenges ahead, ambition, competence and innovative strength. One person who stands for these values like no other is Manfred Bischoff. This is the 14th time he has chaired our Annual General Meeting, always with an impressive calm, balance, seriousness and a dash of humor. And he always has an open year for you, our dear shareholders. It is fair to say that he left his mark on a piece of German industrial history. Dear Manfred, in your address you said this company is extremely well positioned for the future. And this is largely thanks to you for everything you have done for the 3-pointed star over the past 45 years. Thank you, and I say this to you on behalf of all my colleagues. If we had come together here in person today, I'm sure there would be standing ovations for you, Manfred. We will miss you. Dr. Bernd Pischetsrieder is an excellent successor. Dear Bernd, I wish you all the best and much success for this task. And I'm very much looking forward to working with you. As I said in the beginning, we are now preparing the ground for a successful future. Well, this is not just any sentence, but it's an attitude. What drives us is an inner restlessness for what comes next. A colleague recently wrote to me about this in LinkedIn. It was about the proportion of women in management positions. The colleague is not yet satisfied with what we have achieved in this area, and she is right. We are increasing the proportion of female managers year by year. Compared to other automakers, we are in a good position, but we can do even better and intend to do so. This also applies to 2 more areas in particular. Firstly, we are on a good track financially. Now we are keeping up the pace to achieve our profitability targets on a sustainable basis. In a strong market environment, we are striving for a double-digit return on sales at Mercedes-Benz passenger cars. Secondly, we already have the broadest electric lineup of all manufacturers from city cars to heavy-duty trucks. Our own Mercedes-Benz plants will be producing CO2 neutrally worldwide from next year. Our supply chain is also becoming sustainable, but that's not enough for us. We want to speed up the electrification of our product portfolio. 2 years ago, we presented our Ambition 2039; the goal, a CO2-neutral fleet of new passenger cars. It is our ambition to reach this self-imposed target sooner, more about that shortly, because we don't wait for change. We are the ones who change. We are not afraid of challenge. We are the challengers. We will continue to grow profitably while helping to make this world climate neutral with outstanding engineering skills and out of profound conviction. Thank you very much.

[Interpreted] Thank you very much indeed, Ola, for your presentation. Ladies and gentlemen, this brings us to the end of the first part of this virtual Annual General Meeting, which was broadcast to the general public. From now on, the live stream is only open to shareholders who were entered in the share register, their representatives, to invited guests and to accredited media representatives. Downloading, copying, recording or further processing in any way is not permitted without the express written consent of Daimler. Ladies and gentlemen in accordance with the... [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]