MTU Aero Engines AG (MTX) Earnings Call Transcript & Summary

Ladies and gentlemen, I hereby open this year's Annual General Meeting of MTU Aero Engines AG. It will again take place as a Virtual General Meeting. The German legislator has placed the Virtual General Meeting on an equal footing with a face-to-face meeting and designed it in such a way that it offers, without any restrictions, shareholders the same participation and ownership rights as a face-to-face meeting. For us, there is the added aspect of better accessibility for our international shareholders and the avoidance of the climate impact of several hundred people traveling to the meeting in person. As a technology company, we also consider the virtual AGM to be a modern, convenient and shareholder-friendly format that takes into account the global trend of digitalization. We have dispensed with the option of ordering advanced questions due to the feedback from shareholders in recent years who prefer a live exchange. On behalf of the Supervisory Board and the Executive Board, I would like to extend a warm welcome to you. We are pleased that you have accepted our invitation, and thus, demonstrate your interest and commitment to our company. For our shareholders in non-German speaking countries, we offer simultaneous translation into English, which you can access via the language settings on the website or the investor portal. I now come to the announcement of the formalities of the General Meeting. The Executive Board has decided with the consent of the Supervisory Board to hold the Annual General Meeting as a virtual meeting without the physical presence of the shareholders or their proxies. The company has set up a so-called investor portal for the exercise of shareholders' rights in electronic form, the access data for which you received with your invitation documents. Until the end of the speech by the Chairman of the Executive Board, the Annual General Meeting will be broadcast on the company's website and can be accessed by everyone and will be available as a video at the same location after the end of the event. The entire Annual General meeting will only be accessible to duly registered shareholders or their proxies via the company's investor portal. If you, as a shareholder, are currently following the Annual General Meeting via our freely accessible transmission, we kindly ask you to switch to the investor portal as you can only exercise your shareholder rights if you are logged in there. I note that the entire Executive Board of the company and the entire Supervisory Board are present here at the meeting venue. The minutes of today's Annual General Meeting will be taken by Dr. Henning Schwarz, a Notary Public in Munich, whom I would also like to welcome. The Annual General Meeting was convened in due time by publication of the agenda in the Federal Gazette of 31st of March 2023. A specimen copy of the publication has been submitted to the Notary. The information about the invitation to the Annual General Meeting as well as the notification pursuant to Article 125 German Stock Corporation Law was also sent to all shareholders who were registered in the company's share register at the beginning of the 21st day prior to the Annual General Meeting. The list of participants according to Article 129 Stock Corporation Law is currently being prepared. As soon as it is completed, I will announce the participants to you. The list of participants will be made available to shareholders on the investor portal and will also be available here on site at the latest right before the beginning of the voting. Changes to the list of participants will then be recorded in addendums. In the run-up to today's Annual General Meeting, the company has not received any motions for additions to the agenda, no countermotions and no election proposals from shareholders. Shareholders duly registered for the Annual General Meeting or their proxies have the right to submit comments in text form until Friday, 5th of May 2023. We have published these comments -- we have not received any such comments. The venue for this Annual General Meeting within the meaning of the German Stock Corporation Law is the communication center at the registered office of MTU Aero Engines AG at Dachauer Strasse 665 in 80995 Munich. You have and had the option to cast your votes via the password-protected investor portal by means of absentee voting or to authorize and instruct the company's proxies to exercise your voting rights. Provided you have registered in due time, the exercise of your voting rights or a change of your vote is possible on the investor portal until the end of the voting period announced by me. Shareholders who are connected to the Annual General Meeting have the opportunity to object to resolutions of the Annual General Meeting electronically via the investor portal of the company until the closing of today's Annual General Meeting. In the interest of a speedy conduct of our Annual General Meeting, we will combine the discussion on all items on the agenda into one general debate after the report of the Executive Board on the past and current business year. In this general debate, all shareholders and shareholder representatives can take the floor and ask their questions on all agenda items. In my capacity as Chairman of the meeting, I hereby order that the right to speak, the right to submit motions and the right to information, including any questions and queries, may be exercised exclusively by means of video communication. No other submission of questions by electronic or other means of communication was or is possible before or during the Annual General Meeting. The company has already published Mr. Wagner's speech as well as my speech today on the investor portal 1 week before today's meeting in order to give shareholders the opportunity to get prepared for this meeting. The Executive Board will answer your questions following the speech of the Chairman, Lars Wagner. I would therefore ask anyone who wishes to speak to register via the corresponding button on the investor portal, which has been activated since the beginning of this Annual General Meeting. After your request to speak, you will be asked to enter a virtual waiting room where the video communication will be checked for functionality and where you can continue to follow the AGM until you are connected to the meeting room for your contribution. Please note that you are currently watching the live stream of the Annual General Meeting with a time delay of 20 to 60 seconds due to technical reasons. When you enter the virtual waiting room, you will switch to real-time video communication with the management. This means that you will make a leap in time of about 20 to 60 seconds and will not be able to follow the Annual General Meeting during this period. In the virtual waiting room, you will be looked after by a service staff who will explain the exact procedure to you and will also assist you with technical questions. If you wish to speak or ask questions at the meeting, please submit your request to speak via the investor portal as early as possible. Just for the sake of clarity, I would like to point out that the company does not assume any responsibility for the functioning of the video communication and reserves the right to reject speakers whose video communication does not function without disruptions. I can thus conclude my introductory remarks on the formalities. Ladies and gentlemen, we now come to the agenda, the full text of which has been made available to you all. I now call on Item 1 of the agenda: presentation of the approved annual financial statement, the approved consolidated financial statements, the combined management report for the company and the group as well as the report of the Supervisory Board and the explanatory report of the Executive Board on the disclosures pursuant to Articles 289a and 315a German Commercial Code in each case for the financial year 2022. In this regard, I note the following. The aforementioned documents have been available for inspection on the company's website since the Annual General Meeting was convened. Let me now present the report of the Supervisory Board. I refer to the report published in the annual report on Page 10 and following. Ladies and gentlemen, MTU looks back on a successful financial year despite the continuing challenges caused by the corona pandemic and the effects of the war in Ukraine on energy supply and supply chains. Through its technology leadership, the balanced portfolio and growth customer base, MTU is well positioned to continue growing also in the future. The Supervisory Board will continue its close and trusting cooperation with all stakeholders in 2023. On behalf of the entire Supervisory Board, I would like to thank the Board of Management and all employees for their successful work and the high degree of commitment in this once a year -- again, challenging year 2022. Thanks also to the Works Council for its constructive cooperation and particularly to the shareholders for the trust they placed in the company over the past year and will also place in the current year. Details of the activities of the Supervisory Board. The Supervisory Board has fulfilled the control and advisory duties incumbent upon it by law. Also in 2022, with great care and in full, the Board regularly advised the Executive Board on the management of the company and continuously monitored and supervised the business transactions and assured itself of their legality and regularity. The Supervisory Board was directly involved in all decisions of fundamental importance at an early stage. The Executive Board informed the members of the Supervisory Board regularly, promptly and comprehensively about the situation of the company. The Supervisory Board received monthly written reports on the assets, financial and earnings situation of the company. As its needs change, the Supervisory Board also discussed the business development of all companies affiliated with MTU. Together with the Executive Board, the Supervisory Board discussed the strategy and all important projects. The Supervisory Board has approved the strategic orientation of the company with a focus on sustainable and profitable organic growth after careful consideration and examination. Resolutions that passed on all transactions requiring the approval of the Supervisory Board in accordance with the law, the Articles of Association and the management's rules of procedure, after review and discussion with the Executive Board. Preparatory meetings, if necessary, can also take place without the Executive Board. Also, the Supervisory Board has set up its meeting schedule in such a way that it can meet regularly without the Executive Board being present. As in the previous years, also in 2022, the Supervisory Board monitored and examined MTU's internal control systems. Its focus was primarily on the risk management, the audit, internal audit and the legally compliant corporate governance. The Supervisory Board examined the systems with the evolvement of the Audit Committee and in dialogue with the Executive Board and came to the conclusion that the company has established them effectively, in particular, an effective internal control and risk management system with respect to the financial reporting process. Likewise, the Supervisory Board dealt in detail with the compliance of the company. Also, the company -- the committee dealt intensively with the change of the auditor of the annual statement of accounts and the consolidated statement of accounts for fiscal year 2023. There were no transactions with related parties requiring approval or disclosure in the previous year. In the 2022 fiscal year, there were 5 ordinary Supervisory Board meetings and 2 extraordinary meetings. The members attended all meetings with the exception of 1 Supervisory Board member who was unable to attend 2 extraordinary meetings. The attendance rate was 98.5%. The individual meeting attendance is published in the annual report. In addition to strategic planning, the Supervisory Board discussed MTU's path to emission-free flying in detail at its meeting as part of its regular sustainability reporting. Our important -- one important topic was the fuel cell in connection with sustainably produced hydrogen. In the Supervisory Board's meeting, another important topic regarding sustainability was the ecoRoadmap and MTU's climate strategy for the continuous reduction of greenhouse gas emissions, particularly in the manufacturing and maintenance of its products as well as the sustainability targets within the Board of Management's remuneration system, the so-called ESG targets. Furthermore, the Supervisory Board delved intensively with the topic of digitalization, the planned investments in the MTU corporate network and the planned participations in future engine programs as well as with the long-term succession planning of MTU and with the remuneration report. The company's situation was the topic at every meeting. On several occasions, the Supervisory Board received reports on the effects of the war in the Ukraine on MTU's business and the company's expected economic development in the current and in the following year. The Supervisory Board deliberated in detail on the operational planning and budget for 2023, the annual performance-related remuneration of the Executive Board for 2021 and on the determination of the targets and ranges of the performance-related remuneration of the Executive Board 2022. The Supervisory Board also discussed the appointment of the auditor. Based on the recommendations of the Audit Committee, it proposed to the AGM in 2022 that Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Munich be appointed as auditor of the annual financial statement and auditor of the consolidated financial statements as well as auditor of the review of the midyear reports for 2022 financial year. The Annual General Meeting approved the proposal with 99.66% of then votes. In 2022, the Supervisory Board again dealt extensively with the application and implementation of the German Corporate Governance Code and reviewed the efficiency of its activities, among other things, by means of a workshop. In the joint declaration with the Executive Board dated December 13, 2022, it is stated that MTU complies with all recommendations of the German Corporate Governance Code. This declaration of compliance can be found in the annual report, which you can find on the MTU website on Page 123. In addition to the Nomination Committee, which met once last year, the Supervisory Board has 3 committees with the equal representation: the Personnel Committee, the Audit Committee and the Mediation Committee. The Supervisory Board receives regular reports on their work in plenary sessions. The Mediation Committee did not have to be convened in 2022. The Personnel Committee held 4 meetings in the past year. Attendance was 93.8% and discussed, among other topics, the annual performance-related remuneration of the Executive Board for 2021, the determination of the targets for the annual performance-related remuneration of the Executive Board for 2022, including the targets and ranges of ESG criteria as well as the recommendation to the Supervisory Board regarding the remuneration of the Executive Board members. The Audit Committee met 6 times last year in ordinary meetings and 1 extraordinary meeting. The attendance was 100%. It dealt specifically with the annual financial statement, the consolidated financial statements and the combined management report including the nonfinancial statement of the group and the AG as well as with the asset situation, financial position and earnings position and in the annual or midyear reports and the quarterly reports. The Audit Committee also dealt with the additional services provided by the auditor and the awarding of the audit contract to the auditor. It determined the focal points for the audit for 2022 consolidated and annual financial statements and concluded a contract with the auditing company, Ernst & Young. Furthermore, the Audit Committee obtained the auditor's declarations of independence and monitored its independence. It also reviewed and confirmed the procedure for engaging the auditor to provide nonaudit services and approved the engagement of the auditor to provide such services during the reporting year. In 2022, the Audit Committee received reports on the audit strategy approach and process at 4 of its meetings and also in direct discussions with the auditor outside of the meetings. Furthermore, the Audit Committee dealt with the qualification of the individual auditors as well as with the general quality assurance concept of the auditor, including its controls and the practical implementation. As a result of its review, the Audit Committee recommended that the Supervisory Board adopt the annual financial statements, approve the consolidated financial statements, approve the combined management report and the nonfinancial statement and approve the Executive Board's proposal for the appropriation of profits. The Audit Committee monitored the accounting process and the related internal control and risk management system and the compliance management system. The Audit Committee also dealt with the invitation to tender for the auditor's mandate, including the recommendation of a candidate to the Supervisory Board with the annual audit for the financial year 2021 and then to use currency hedging model as well as with the topic of aircraft financing and the current status of ongoing campaigns. The Audit Committee reviewed the efficiency of its activities and got itself informed about the status of the nonfinancial reporting and the organization of the accounting system as well as the further development of the risk management system and the internal control system. The Supervisory Board did not raise any objections following the review of the annual financial statement, the consolidated financial statements, the combined management report, the nonfinancial declaration and the remuneration report, which received an unqualified audit opinion. The submitted annual financial statement and the consolidated financial statement for 2022 financial year were approved at the Supervisory Board meeting of 21st March 2023. The annual financial statement thus approved and adopted. The Board approved the Executive Board's proposal for the appropriation of the net earnings, taking into account the interest of the shareholders and the company. In agreement with the Supervisory Board, CEO Reiner Winkler ended his mandate at the end of 2022 for personal reasons. The Supervisory Board would like to thank Reiner Winkler, who has played a decisive role over more than 2 decades in making MTU an outstandingly well positioned company with excellent prospects for the future. Chief Technology Officer, Lars Wagner, was unanimously appointed by the Supervisory Board as the new CEO with effect from 1st January 2023. Dr. Silke Maurer became the new Chief Production Officer on 1st February 2023. There were two changes in the Supervisory Board in 2022. Regarding the employee representatives, there was a change. Roberto Armellini served on the board until 31st July 2022. Since August 17, 2022, Daniele Frijia has been a member of the Supervisory Board as his successor. The Supervisory Board thanks Roberto Armellini for his work. On the shareholder representative side, Klaus Eberhardt resigned from office at the end of 2022 Annual General Meeting. The Supervisory Board thanks Klaus Eberhardt for his many years of service and his great commitment. I, myself, was elected as a member of the Supervisory Board at the AGM on 5th May 2022 and subsequently by the Supervisory Board as Chairman of the Supervisory Board. So much for now from my side. I now give the floor to the Chairman of the Executive Board, Lars Wagner, for the report of the Executive Board.

Ladies and gentlemen, shareholders and shareholder representatives, a warm welcome to our AGM. We are delighted that you have logged on to follow us today. This is my first AGM as CEO, and I would like to take this opportunity to thank our Supervisory Board again. Many thanks for your trust and your unanimous vote. I was happy to accept the chance to lead MTU into a successful future together with my colleagues and the Executive Board and our management team. What is our plan for the future? It can be summarized in three figures: 8, 1, 25. Our goal is to achieve a revenue of EUR 8 billion and an operating profit of EUR 1 billion by 2025. That means growth. Moreover, and this is something I consider particularly important, it means sustainable profitable growth. We want to become as profitable as we were before the COVID crisis and we want to set new records for MTU. That is ambitious, but I am confident that we can achieve our goal. What makes me so optimistic? In 2022, we proved that we can grow profitably even in tough conditions. There were many challenges in the past year. Although air traffic picked up, it was still below the precrisis level. The war in Ukraine also impacted our sector, mainly indirectly. Here, I'm thinking of the increase in oil prices and the resulting rise in inflation apart from the human tragedies. In addition, there were enormous supply chain problems. Nevertheless, MTU grew organically from its own powers. We took the crisis has an opportunity and emerged with -- from it even stronger. We can draw considerable confidence from that. In 2022, we grew revenues by 27% to EUR 5.3 billion. The adjusted EBIT rose 40% to EUR 655 million. The adjusted net income was EUR 476 million after taxes, which was also an increase of around 40%. Let us compare these figures with our forecast. Admittedly, full year revenues were slightly below our target. That is attributable to the pronounced volatility in the supply chain. But surely, what really matters is the figure below the line. Here, we did not simply deliver. We considerably exceeded our earnings forecast, although we only raised our guidance at the end of October. We fully achieved our cash flow forecast. Above all, the figures show one thing. MTU is a healthy and successful company. You, our shareholders, should also benefit from the -- dear shareholders, today, the Executive Board and Supervisory Board are proposing a dividend of EUR 3.20. That is EUR 1.10 more than last year and the highest dividend since MTU's IPO. If you give us your approval, we will pay this dividend to you on May 16. At the same time, we're leaving ourselves sufficient headroom for growth projects to create value, growth that will strengthen us as a company in the future and also benefit you as shareholders. In keeping with our dividend policy, we want to raise the payout ratio further in the coming years. MTU's dividend should, therefore, remain attractive in the future as well. We believe in the future of MTU and we are not alone in that. The capital market shares our confidence. That can be seen from the positive development of our share price. Here, you can see the price performance in fiscal year 2022 compared with the DAX. MTU share gained 12.7%. They, therefore, outperformed the DAX. And the share price also continued to develop positively in 2023. It has risen to the highest level in the past 3 years. We see this as a clear sign of confidence, and we would like to thank you for that confidence. At the same time, we are aware that you expect even more from us in the future. But in terms of share price performance and in terms of the development of MTU, we are doing everything we can to meet those expectations. We have paved the way for sustainable profitable growth. That is shown by the first quarter. In the first month of 2023, MTU seamlessly continued the success of the fiscal year 2022. Essentially, we got off to a flying start. We posted a significant rise in revenue and earnings, and that is not all, it was the best quarter in the history of MTU. What do we expect in 2023 as a whole for MTU? In a nutshell, we will continue to grow against the background of a positive development in air traffic. Overall, global air traffic is now back around 85% of the pre-pandemic level and over 97% for short and mid-haul flights. We aim to report revenue of between EUR 6.1 billion and EUR 6.3 billion in 2023. All our business areas should grow. We expect to see the highest revenue growth in the commercial series business. Here, the production outlook should increase considerably, especially production of engines for the A320neo and for regional and business jets, and in production for long-haul aircraft should also pick up again. In addition, organic growth in the spare parts business should increase in 2023. Engines for cargo aircraft continue to account for a high proportion of the aftermarket business. We also anticipate organic growth in commercial maintenance in 2023, firstly, because we see strong pent-up demand for maintenance services; and secondly, because there are far more flights that results in higher demand, especially for commercial maintenance. Furthermore, our military business should increase this year. And a very central role is playing the EJ200 engine for the Eurofighter. We expect to make deliveries to export customers and a high volume of aftermarket work. In this way, we safeguard and secure the availability of the fleets that are in service. What does revenue growth in all business areas mean for our earnings? Clearly, it should have a positive effect. The adjusted EBIT margin should remain stable in 2023. In 2023, we will therefore continue our profitable growth track heading for 8, 1, 25. What makes MTU so successful even in challenging years? One success factor is our clear focus on operational excellence, first and foremost, a stable supply chain, smooth operation and high delivery capability. With regard to suppliers, we focus on long-term relationships, close collaboration and validation of several different suppliers. Our organization is positioned for growth and is scalable. We have increased the automation and digitalization of our production. We are currently preparing our maintenance operations for further growth. At the same time, we constantly examine the need for investment and are systematically continuing our best cost strategy. As part of this, we opened MTU Maintenance Serbia in 2022. The new site near Belgrade specializes in repairing engine parts. At the same time, we must not cease in our efforts because market data show that demand will increase in the coming years. For us, that means higher production rates and increased demand for maintenance. We can successfully meet both thanks to our operational excellence. We attach the greatest importance to customer satisfaction. Our customers can expect the highest quality and reliable delivery from us as well as excellent products and custom-tailored services. Another big advantage for MTU's success is our portfolio, both in the OEM business and in commercial maintenance. Here, it is important for us to continue to strengthen and future-proof our core portfolio. The goal for our OEM business is to increase our share of work in future engine programs. On the maintenance side, we aim to exploit the growth potential provided by both new and existing engine models. We made good progress towards that in 2022. Let us begin with commercial maintenance. Here, we extended our range of services last year. At the same time, we enhanced our flexibility and proximity to customers. Allow me to give you two examples. First, the PW1100G-JM engine for the A320neo. Since 2022, we have also been able to provide maintenance services for this engine at MTU Maintenance Zhuhai, and therefore, there are 3 locations within the MTU group: MTU Maintenance Hannover, EME Aero in Poland, and now, at our Chinese site as well. Second example, the geared turbofan engines for the Airbus A220 and the new E-Jet generation of Embraer. These were added to our maintenance portfolio in 2022. Now regarding OEM business, our portfolio approach is dominated by one main topic, namely sustainability. As an engine manufacturer, we bear responsibility for our company, for the environment and for society and we accept this responsibility. We want to and we will contribute to cleaner aviation. The goal is clear, climate neutrality by 2050. I am personally committed to making sure that we do everything we can to achieve this goal as CEO, as Chief Sustainability Officer but also as a family man and as a citizen who wants to make a contribution to protecting our planet. As head of our technology and development area, I am pushing to make sure we deliver the innovation we need. And we are doing that. MTU took early action to offer customers solutions that can help them to reduce emissions and save resources. The geared turbofan is a prime example. It is used in the A320neo, the A220 and the new -- Embraer's new E-Jets. You are all familiar with the key data: 20% reduction in both fuel and consumption of CO2 emissions compared to the previous generation. In addition, a 75% lower noise footprint. Together with our partner, Pratt & Whitney, we further enhanced the geared turbofan in 2022. The so-called GTF Advantage will be even more efficient with lower emissions. It will reduce both fuel consumption and CO2 emissions by a further 1%. Moreover, the GTF Advantage is designed to allow operation entirely with sustainable aviation fuels. Test flights with the GTF Advantage started in 2022 and the new engines should be available from 2024 on. That is an important step into the right direction. But is climate-neutral flying really feasible? The answer is yes. Our technology road map, Claire, maps out the specific routes. The revolutionary propulsion concept play a very important role, namely the water-enhanced turbofan, known as WET in short, and the flying fuel cell. The water-enhanced turbofan is a gas turbine with energy recovery and WET combustion. The WET can [ work ] on sustainable aviation fuel or hydrogen and could reduce climate impact by 80%. Its improved efficiency cuts costs and saves valuable resources. The concept can be used in all thrust and power classes. In [ 2022 ], it will be available. Last year, there was a starting short for the water-enhanced turbofan based on the research project funded by the EU, namely SWITCH. Together with Pratt & Whitney, Airbus and further partners, we want to explore the potential of the WET concept and its integration into aircraft that will provide valuable insights for a sustainable future for aviation. With the flying fuel cell, our focus is on achieving complete electrification of the powertrain. Specifically, liquid hydrogen is converted into electricity with the aid of the fuel cell. The flying fuel cell has a potential to reduce climate impact by 95% and thus to almost 0. It is almost emission-free. The only emission is water. This technology is initially intended for short-haul regional flights. What is not evident at first sight is that technological opportunities are also provided by the military business. To be quite specific, by the work on the development of an engine for the next generation of European fighter aircraft. In this vein, we are extending our technology expertise in the high-tech field. Moreover, our work is making a contribution to Europe to secure military capability and political sovereignty. Russia's invasion of Ukraine has made it clear that this contribution is more important than ever. There is no question, we all condemn the war in the strongest possible terms. It has brought unimaginable suffering. Naturally, MTU supports all sanctions imposed by the EU and the United States and complies with them in full. At the same time, the Board has made it quite clear, namely, that security has to be a core task for Europe. That gives the future combat air system, of course, a key role. Here, MTU can provide support. Looking forward, we can use the opportunity for technology transfer in the commercial sector. As we move more towards carbon neutrality in aviation, sustainable aviation fuel, the SAFs, play an important role because they have positive effect immediately and directly, and above all, because there is no alternative in the foreseeable future especially for long-haul flights. Therefore, we need to give clear priority to the users of SAFs in aviation. SAFs can be used as a mixture to conventional kerosene. Our engines can operate with them without problem. They are already doing it. Here is an example regarding maintenance. Since last year, we are offering customers the opportunity to use SAFs for test runs during maintenance work. Incidentally, we are the very first company in the world to do that. In this way, we greatly reduced the CO2 emissions and acceptance tests, and we are delighted that this option is widely used by our customers. Such initiatives are a good start. But to have a noticeable effect, it is essential to significantly increase the proportion of SAFs used in aviation because that would provide the urgent and needed reliable framework for industrialization of SAFs, and thus, for a significant increase in production capacity. In short, we need a European climate policy that effectively reduces emissions today. We are also working on it with full swing. We are working on the technologies of tomorrow. Dear shareholders, as you can see, for us, sustainability and innovation are not a contradiction. They are two sides of the same coin. Why? Because that is precisely the right way to create lasting success for the company. MTU wants to shape the future of its sector and make a positive mark on it. At the same time, we want to be and remain competitive. That benefits us all: the environment, society and you, our shareholders. If you reflect on what I've said, you will see that we are already working intensively on tomorrow's MTU. It is perfectly clear that we could not achieve that without a powerful team. Our success is attributable to the enormous dedication, entrepreneurial flair and team spirit of our employees. Our team fully supports our work and our plans. Many thanks to all our employees. Dear employees, I would especially like to thank you all for the commitment and flexibility you showed in 2022 in the face of the high capacity utilization at our sites and for driving forward all our projects so quickly and so well. I hope and believe that you can feel that something is happening at MTU. We are moving forward. MTU has an exciting prospect. Our objectives are also supported and assisted by our Supervisory Board. I would like to say thanks on behalf of the entire Management Board, to all members of the Supervisory Board. Today, the term of office of 1 member on the shareholder side and of 3 employee sides will end. It is Dr. Jürgen Geißinger, Heike Madan, Thomas Dautl and Michael Winkelmann. On behalf of the Executive Board, thank you for your very constructive and thoughtful support for our work. I trust that you will remain loyal and well disposed to us also in the future. The Supervisory Board proposes that in today's election, Ute Wolf should be elected as a new member of the Supervisory Board. The employee representatives have already been elected. Welcome Mrs. Sowa-Frank, Dr. Haltrich and Mr. Eisenblätter. I look forward to a continued collaboration with the Supervisory Board, and I am pleased that Ute Wolf is standing for election. She has a wealth of experience which can be used effectively in the next steps in MTU's growth. Our long-standing and trustful relations with our partners, suppliers and customers around the world are an important basis for our future success. I would also like to thank them both personally and on behalf of the entire MTU Executive Board. My task is to align MTU for the future, to guide it successfully to 8, 1, 25 and, in the longer term, to draw up a program for MTU in 2030. And I'm not doing this on my own. I do this together with my colleagues on the Executive Board, our managers and all our employees in keeping with our leadership values and our innovative, modern corporate culture. Through your commitment, dear shareholders, you have shown that you believe in the future of aviation, above all, you believe in the future of MTU. You place your trust in us and you have a long-term focus, just like us. On behalf of the entire Executive Board, many thanks for that. You can rely on us to stick to the route we have embarked on, on the way to our goal of achieving revenues of EUR 8 billion and an operating profit of EUR 1 billion in 2025. We will continue our profitable growth, and at the same time, we will help to make this world climate neutral with full conviction and the outstanding expertise of a technology leader. Thank you very much for your attention.

Mr. Wagner, thank you very much for your speech and your comments. I think you hit the point. At this point, we will end the public broadcast of the AGM today. We say goodbye to all who have watched us via the public link and thank them for their interest. [Statements in English on this transcript were spoken by an interpreter present on the live call.]