Sartorius Stedim Biotech S.A. (DIM) Earnings Call Transcript & Summary

[Foreign Language] Welcome to the 2023 Ordinary and Extraordinary Annual Shareholder Meeting of Sartorius Stedim Biotech S.A. My name is Anne-Marie Graffin. I'm a member of the Board. And in the absence of Mr. Joachim Kreuzburg, Chairman of the Board, I will chair the meeting in accordance with Article 2022.9 of the Company's Article of Association. Mr. Joachim Kreuzburg is attending the meeting via video conference and will provide the presentation of the company's activity and answer all the Q&A session. I would also like to start by thanking all shareholders present in this room today. I would also like to thank all shareholders who casted their vote remotely ahead of this shareholders meeting and people watching our live stream broadcast video. I really think that this format could offer the potential to encourage higher level of physical participants and participation of our shareholders. Next to me in this room are Mrs. Pascale Boissel, member of the Board, Mrs. Christelle Baudere, member of the Board, representing of the employees and Mr. Olivier Guitard, Head of Controlling of the BPS division and General Manager of Sartorius South Europe. I now need to appoint the officers of the assembly. So is there any shareholders who wish to volunteer as a scrutineer of this meeting? But just please be aware that the scrutineers will need to stay after the meeting to finalize all formalities and sign the minutes. Well, okay, then I may ask, Mrs. Pascale Boissel, and Mrs. Baudere to agree to act as scrutineers of this meeting. Thank you and also ask Mr. Olivier Guitard to act as Secretary of this meeting. Thanks very much. We also have the auditors present in the room and the service of English and French translation if need be. I will have now to inform you about several formalities, namely in 3 categories: Starting with a number of shares represented today and the number of voting rights. We have the quorum to hold this combined shareholder meetings as follows and the quorum is currently of 92.89%. The final percentage will be available after the final treatment by the banks. Second, with regard to the convening of the annual combined shareholders' meeting, the agenda and the text of the resolutions are available here and were published. In the bulletin #20 of the BALO of February 15, 2023, for the Avid de réunion. In the bulletin #29 of the BALO of March 8, 2023. And in the newspaper La Provence of March 8, 2023 for the Avid de convocation [indiscernible] adding a 15th resolution related to a delegation of authority to increase the share capital reserve for the company's employees pursuant to Article L2025.129.6 of the French commercial code. No draft nor new items of the agenda were requested and other information are all taken from the 2020 universal registration documents. All documents required by law, which you may have received from [ OPTAVIA ] or your financial intermediary are available as well here during the meeting and also on our website. Finally, regarding presence and voting. The attendance list has been signed at the beginning of the meeting, and it indicates the number of shares and voting of rights of the shareholder present and also the number of proxies received before the meeting. I will now need to introduce the agenda of today's annual combined shareholders' meeting. Under the [ competence ] first of the Ordinary Shareholders' Meeting, reading of the 3 reports of the Board of Directors, respectively, the management report on the financial statement incorporating the group's report, the report of the proposed resolutions of the shareholders' meeting and the corporate governance report. Reading of the 3 reports of statutory auditors, respectively, the report of the financial statements for the year ended December 31, 2020 (sic) [ 2022 ], the report on the consolidated financial statements for the year ended December 31, 2022. The report of the regulated agreements covered by Article L225-38 and subsequent of the French commercial code. Approval of the financial statements for the year ended December 31, 2022 and discharge to all directors, which is going to be resolution #1. Approval of the consolidated financial statements for the year ended December 31, 2022, namely resolution #2. Allocation of the financial results for the year ended December 31, 2022, resolution #3. The approval of the special report of the statutory auditors concerning regulated agreements as referred to in Articles L225-38 and sequence of the French Commercial Code, resolution #4. Then 6 resolutions concerning the remuneration of the members of the Board will follow in compliance with the say-on- pay rules as described in our 2022 universal registration document. We are now talking about resolution 5, 6, 7, 8, 9 and 10 and authorization granted to the Board to enable the company to trade its own shares, resolution #11. And finally, proxy to carry out formalities, resolution #12. Under the [ competence ] of the Extraordinary Shareholder Meeting, the reading of the report of the Board of Directors of the proposed resolution, the reading of the statutory auditors' special report, 3 delegation of authority granted to the Board of Directors in relation with the share capital of our company, we are talking about resolution 13, 14 and 15 and proxy to carry out the formalities, resolution #16. I will now leave the floor to Mr. Joachim Kreuzburg, who will provide, as previously mentioned, the information about the activity of the Sartorius Stedim Biotech Group, including the main results for the fiscal year 2022.

Thank you very much, Anne-Marie, and good day, everyone. Good day, dear shareholders. Thank you for your interest in Sartorius Stedim Biotech and for your participation here today. I would like to, first of all, apologize for not being present in Aubagne today due to the travel limitations in both France and Germany today. That's really an unfortunate situation but that has triggered this different setup than we initially planned for. What I would like to do now is to report to you on the business of Sartorius Stedim Biotech in general, then, of course, also on the results of the last fiscal year and about the future perspectives of the company. Next chart, please. So what we are doing and what we are really focusing on completely with our purpose and our mission is health. We want to contribute to one of the most relevant and pressing global topics, and that is human health. As you can see here on this chart, the world population, we all know that is growing and particularly the aging population is growing and there is a strong correlation between the need for medicine and age. But something that you can't see on the chart is, for example, the fact that only a minority of the kids worldwide get vaccinated. So it's clear there is still a huge demand for better health globally. Some more information here. What you can see is that, therefore, there is substantial investment going on, particularly into biologics, as biologics very often provide superior treatments to a couple of severe diseases. And there is a strong and growing demand for such biologics, as you can see here as well. Next one, please. But of course, there are challenges also associated to that and we try to address those challenges. And in a nutshell, you can say the key is here that the development and manufacturing of medicines is very time consuming and costly. It's a complex matter. It takes a long time. You can see mostly more than 10 years to bring a new drug to the market. And it's very costly because you have to try a lot of different options until you finally bring 1 drug to the market. Next one, please. And that is in a situation or within a context where a lot of innovative biological medicines are highly effective, enable the treatments, partially the cure of so far untreated and uncurable diseases. There are a couple of examples here. I don't want to read them all out. But what you can see here and what we want to bring across by this chart is that there are unique treatments for a couple of severe diseases and partially also widespread diseases, partially more orphan diseases but nevertheless, another common denominator is they are very costly and costly to an extent that it's a little bit prohibitive for really a wide utilization of such drugs. So therefore, there are 2 key challenges. How can we shorten the time lines that was shown on the one chart before? And how can we reduce the cost that it takes to bring such drugs to the market and bringing them to the patient. Next one, please. So and just a couple of examples of what we are doing here. And again, without going into all those details, one example here on the -- that is rather addressing the early stage of developing a drug, bringing it into the manufacturing stage, the example here is about the acceleration of cell lines, media and process development that we are providing by offering cell lines, media but also process optimization technologies and services. Our Ambr 15 is a great example that enables the highly parallel running of experiments that help our customers to finally find the best clone and media combination to accelerate the time to the market. And then later, next one, please, when it is about the manufacturing phase of a biopharmaceutical, then further examples here would be in the downstream domain, for example, a product that we have added to our portfolio through an acquisition that is reducing the downstream processing time very substantially or another one, a known development here that reduces the costs associated to these process steps also very substantially. So again, tools that exactly address the pressing items of our customers in the industry. And what is also important to note is next one, please, that these technologies also help to improve the ecological footprint of bio-manufacturing. And two factors that play a very significant role here is water consumption on the one hand and then energy consumption, and of course, very often, there is a high correlation between energy consumption and CO2 footprint. And again, you see some product examples here that stand for helping our customers to reduce the consumption of water and energy substantially. 30% is a good ballpark number here, of course, it differs very much on the particular process step, on the particular process also that our customers run here, the product, the volumes, et cetera. So -- but we are proud being able to say, next chart, please, we are proud of being able to say we are substantially contributing to 1 of the 17 sustainability goals being defined by the United Nations. And the third one that is in particular relevant here is good health and well-being for human beings. And you can read also our mission here that is really addressing this, by helping our customers to simplify and accelerate the processes, as I described before, also along some examples. But of course, as you can imagine, this is also very much about innovation. Next one, please. We, therefore, constantly look for making our product portfolio even more relevant, even more helpful to our customers and that is a lot about innovation. As you can imagine, only innovation helps us to further shorten the time lines, reduce the cost position in those processes. And we base our innovation activities on 3 pillars, since many years already, we have a strong own competence in certain areas that we use to continuously develop new products in those segments. We also run a lot of cooperations with the leading partners in the industry in technological fields where we have some competence but where we think we are even stronger by cooperating with the right partners. And then, of course, we are constantly also looking for additional technologies, additional innovation through acquisitions. And here again, you find on the right-hand side, some example for both the acquisitions as well as cooperations. And I guess the names Albumedix, Novasep you have heard before, when we reported on those acquisitions. Next one, please. And one example where we have particularly been able to build a strong portfolio through such acquisitions, supported also by our own developments, also by cooperation is in the field of what we call critical raw materials and ingredients for bio-manufacturing with a strong focus on new modalities, Biological Industries an acquisition in Israel that we closed 2019. Growth factors and cytokines were added to our portfolio 1 year later through the acquisition of CellGenix. Another year later, we were able to acquire Xell media and supplements and then another year later, so last year, we added Albumedix recombinant albumin. And we really have built a unique, strong portfolio of such critical input materials that again help our customers to increase the efficiency of their processes. Another aspect that I want to briefly touch upon on the next chart is our business model. What we tried to describe here in a nutshell is one aspect that has to do with the fact that 3/4 of our business is with recurring products or with consumable products that provide recurring revenues. You see that on the right-hand side. But then at the same time, we are addressing the different process step of our customers, as you can see on the left-hand side. So and overall, what that enables or what that provides basically is on the one hand side, a lot of stability because of the broad scope as well as of the high level of recurring revenues, while at the same time, enable attractive growth rates to be addressed, as you can also see along some numbers on the right-hand side. So I would now like to shift perspectives on the next slides to the last year, 2022. We believe it has been a successful fiscal year, again, after 2 years already that have been showing very high growth rates, the years 2020 and '21, you could have seen on the chart before that also before that, our track record is characterized by double-digit growth rates anyway but the last years '20 and '21 have been incredibly successful, are characterized again by overproportionate growth for certain reasons that I'll come back to in a minute. Last year, again, strong top line growth, 15% to EUR 3.5 billion of sales revenue. Underlying EBITDA was up even stronger by 18%. Of course, when we then take into account some currency effects, the EBITDA margin was slightly below previous year, but still at a very high level after really strong step increases the years before, 35% was the number we achieved here. And also underlying earnings per share are strongly up by 16% to EUR 8.64. So what you also can see is that the normalization that we were talking about since Q3 2020 now finally materializes or I should say, started to materialize, that was expected for reasons that I'll come back to in a minute. So -- and therefore, order intake was down by 13%. You can see also the geographical distribution of our sales revenue, again moved a little bit more towards a more evenly distributed geographical split of our sales revenues, particularly Americas is now close to the size of the European business, as you would expect when you see the distribution of the market sizes as well. One quick look on the balance sheet of our parent company or the parent company of the Sartorius Stedim Biotech Group, I think it's fair to say that, again, it shows a very healthy structure with 75% equity ratio. Then a brief look on one of the agenda items today, which is the dividend on the next chart. We propose dividend to increase by EUR 0.18. That is an increase of -- or would be an increase of 14%. The total profit that would be distributed is close to EUR 133 million. The payout ratio would stay pretty much on the exact level that we have distributed or paid out last year, 16.7% would be the number here. Now coming back to our business activities last year. We tried to support our strong growth and growth prospects that I will talk about later by substantial investments, more than EUR 400 million have been the investments last year, 12.3% our CapEx ratio, as also projected at the beginning of the year. And as you can see by the examples on the right-hand side of the chart here is, we are investing globally at our different sites. Mostly, we are expanding existing sites. That is the focus of our scope that we are expanding existing sites with the exception of South Korea, where we have started to build up a completely new site for our -- to support our business in South Korea, which is sizable but also to support our customers in Southeast Asia, except for China. And what you can also see is that we are investing into both capacity expansions as well as R&D activities on a global scale. We also do care about the eco footprint of our activities. You can see that on the next chart, we are investing substantially into renewable energy supply. Two examples here, our campus in Göttingen, as well as the campus in India that we are running solar panels in India, as you would think, a very attractive way to reduce the CO2 footprint there and a very meaningful way. We are using geothermal energy opportunities, I would say, in that specifically given in Göttingen to further reduce our footprint there as well. So -- and therefore, what we can say is that Sartorius Stedim Biotech is a very significant contributor to the ambitious sustainability targets of the Sartorius Group overall. We have set ourselves targets that are even more ambitious than those of the European Union, for example, or the science-based targets. The reduction of 10% of our CO2 emission intensity between 2019 and 2030 would have to be seen in the context of 8.5% that the goals of the European Union Fit 55 would represent and that, of course, accumulates over the years. So it's really a substantial reduction that would lead to -- reduction by 70% between '19 and '30 would be the result of that. And maybe for those of you who are in the details here, this is related to the entire CO2 emissions or emission equivalents across the entire activities, including Scope 3 activities, which make up for 90% of the emissions and Scope 1 and 2, which are very closely in our hands as the manufacturer, we want to reduce to 0. Another topic or further topics, I should say, that our knowledge in -- and now is water and material efficiency. You can see here also a few information. We are working on reducing our water consumption which is, for example, a topic in membrane manufacturing by respective measures. We have already very significant recycling rates in numerous areas of our manufacturing but want to reduce that further in some areas, for example, in the domain of plastic materials. Let's take a look on HRM aspects. We have seen another year of a strong increase in headcount that was particularly necessary during the years '20, '21 and '22 to manage order peaks. Of course, we would have increased our headcount anyway but to manage these really extreme order peaks that we have seen, particularly since Q3 2020 until Q3 2021, we had to invest a lot into additional capacities on that end. We added on average, 1,600 jobs per year over the last 4 years between '18 and 2022. Last year alone was also almost 1,600 people. But of course, such strong growth also offers substantial opportunities for internal developments. You see 60% of our internal jobs we filled -- management positions we filled by internal talent. We also become increasingly diverse. You can see that on the next chart, very international workforce, very balanced age distribution, I would say. Of course, also very much triggered by the high number of additional jobs that we have created and we also have a very substantial portion of female top managers in our group. We also get good feedback from both the inside and the outside to how we perform as an employer, some numbers here, the 3 percentages are from our annual -- our half year regularly made employee survey. And then the Glassdoor number, of course, is an external survey or an external feedback that we always get. Before I move to the outlook, I would take -- like to take a look on the development of our shares last year. Obviously, we have seen a certain decline of our share price by 37%, as you can see in the table up there. That decrease was higher than the decrease of the index where we would consider to be relevant here, CAC Large 60 and MSCI Europe. However, of course, we should take maybe a longer perspective on this. If we again take a look from 2018 to 2022, I think that almost goes without words. We have seen an increase of 400% for the Sartorius Stedim Biotech shares, an order of magnitude stronger than the increase of the indices. So I think clearly, the valuation multiples have been extremely high during the years 2020, '21 in particular. And also here, we have seen some correction normalization, the development of the Sartorius Stedim Biotech shares is, of course, no exception here. We consider the midterm outlook of our business and therefore, also of our shares to remain very positive. So let's talk about the outlook of our business. Of course, an outlook on the share price is always difficult as there are also external factors to take into consideration. And I think what we can say is that we are operating in a market that shows very healthy parameters and growth outlooks on the long term. There will be always fluctuations around the long-term developments as we have seen that in the past and I will come to a more short-term impact here just in a minute. But what are the long-term drivers? We see very healthy R&D pipelines. We see new modalities arising. We see biosimilars playing an increasing role. We still see that customers are increasingly shifting to flexible setups of the manufacturing. We address that with our strong portfolio of single-use and consumable products. And then, of course, innovation is something that is urgently needed. We talked about that before. Therefore, the average and that is really important. The average annual growth that is projected here until 2026 should be around 10%. This will be not the number for each and every year but on average, I think it's very reasonable. And we believe that we can say that we have a very relevant position here for our customers because of the portfolio that we have bought partially through acquisitions, because of the global reach that we have and a strong team also that understands the needs of our customers very well and addresses them on a day-to-day basis very thoroughly. So now I already said a few times that I would like to talk also about some short-term effects. I said a minute ago that we already saw the normalization of demand starting around mid of last year. And this is because, on the one hand, we saw -- or we have entered the tail of the corona demand, very obviously, the peak manufacturing of corona vaccines is now already a couple of quarters behind us. So therefore, this additional demand is gone. We have seen less demand during 2022 already than in 2021 but what is even stronger effect is one that we have started to talk about since Q3 2020 and that is because of disrupted supply chains at the beginning of the pandemic, a number of customers of ours have started to build up inventory substantially. And now they have started more precisely around of mid of last year, they have started to run down their inventory levels. We expect that this process will take a couple of quarters. It's difficult to project that very precisely but we always have said that we think that at least the first 2 quarters this year, so the first half of this year, we will see a significant impact from that. And we have seen, therefore, book-to-bill ratios below 1 already during the last 2 quarters of last year. So -- and therefore, we expect the year 2023 will be the year that will be characterized by migrating back to the underlying and projected growth trajectory after being at least 1 year ahead of this because of these extraordinary effects. And I hope this chart shows this in a clear way, the yellow curve represents the underlying growth trajectory that we have defined already a couple of years ago, which is basically an extension of what we have shown over more than a decade now as our growth performance. And then you can see that '21 and '22 are sticking their heads out basically. So that means we are running ahead of the schedule and we expect this to migrate back now because the underlying growth drivers are intact, which is a very positive statement. But it would be also wrong in turn to say, well, for some reason, we continue to run ahead of the curve. I think this would be not realistic as well. But this is nothing new. I only wanted to take the opportunity to explain that also here during the shareholder meeting in detail, we have explained that quarter-by-quarter very explicitly and in detail to the capital market, to all analysts, to all shareholders. So the outlook for 2023 on the next chart now, therefore, is that we expect a low single-digit growth. If we would exclude these effects that are in one way or the other related to the COVID directly, that means to the manufacturing of vaccines, in particular, it would be a mid- to high single-digit growth. If we would virtually exclude these inventory effects, it would be even higher but that is hard to quantify. Therefore, this is just by excluding the corona effect or the direct corona effect. And for the EBITDA margin, we project the high -- the same high level as last year. My last chart now is about our midterm outlook, that is the ambition for the year 2025. You might recall that we have first time defined that at the beginning of 2019, increased that because of our very healthy performance even before the pandemic, EBIT. We have also increased our expectation for the EBITDA margin, so not only the sales level but we now have adjusted the sales revenue level that we are shooting for, for the year 2025 by approximately 10% because of the price adjustment that we have had introduced mainly last year. But also, to some extent, this year as a reaction and the compensation for the inflation effects that we have seen since a year now. So -- and with that, I would like to again thank you and hand back to Anne-Marie to run the Q&A.

Yes. Well, thank you very much, Joachim, for this extensive review and outlook for our activity at the Sartorius Stedim Biotech Group. Before moving to the resolutions and the Q&A, I have a few elements to mention regarding to specific formal topics of the agenda. And we will start with the topic 1 and 2 for the Ordinary Shareholders' Meeting. So topic 1 relates to the 3 reports of the Board of Directors and you find these respective reports as follows, so that I don't need to read them out fully today. The management report of the Board of Directors and the group company management report are disclosed in Page 17 to 72 of the French 2022 Universal Registration Document. Second report is the Board of Directors' report on resolutions submitted to the Ordinary Shareholders' Meeting, which is fully disclosed in this 2022 URD in Pages 234 to 240. Along with the addendum we already mentioned, provided in the shareholders guide and available on the company website about the resolution 15, which has been added to the agenda to comply with the Provision of Article L225-129-6 of the French Commercial Code. It's being specified that such resolution has been included in the convening notice, Avid de convocation, published in the BALO in accordance with law. The governance report, which was drafted to comply with Article L225-37 of the French Commercial Code and is published in Page 73 to 124 of the 2022 URD. Topic #2 on our agenda relates to the 3 reports of the statutory auditors, respectively, the report on the financial statements for the year ended December 31, 2022, the report on the consolidated financial statements for the year December 31, 2022 and finally, the reports on regulated agreements covered by Article 225-38 and subsequent of the French Commercial Code. And for this, I would like to invite Mr. Christophe Perrau, our auditor, to read and comment about these reports.

Good afternoon. So I'm Christophe Perrau. I'm an audit partner at Deloitte. So on behalf of the 2 statutory editors, KPMG and Deloitte, I will make a short summary of our audit reports because those reports are in the URD. So the first report we issued is a report on the consolidated financial statements. In this report, we indicate as a conclusion that we certify that the financial statements are correct and we make no observation on the management report on that point. The second report is a statutory auditors' report on the individual financial statement of Sartorius Stedim Biotech S.A. is disclosed on Page 204 of the URD. This report will indicate that we certify the financial statements and for specific verification, we indicate that we have no observation. And then we issued a report on the related agreement. In this report, we indicate that -- we didn't -- we were not informed of any new related agreement. So it's a short report. It's nothing new. And for the next part, for the extraordinary shareholder meeting, we also issued 3 reports in which we indicate that we review the management information. We have no observation on the information that's disclosed and we indicate that we will issue another report once and if those authorizations are approved by the Board and used by the Board. Thank you.

Thank you, Christophe. Thank you very much. Well, now it's time to continue by voting each resolution with the shareholders present in the room. The final quorum is remained at 92.89% here. And so concerning the voting procedure, the shareholder is asked to write her or his vote for each resolution on the certified paper form given at the time you signed in, either by ticking for, against or abstain. This paper form will be considered as proof and you do not need to raise your hands to express any kind of vote. This voting form will be collected after the voting session and the detailed results, resolution by resolutions will be communicated to you at the end of this meeting. Well, I will go through the resolutions one by one. And after each resolution, of course, I will make a pause for you to be able to fill in your certified voting forms in accordance to the explanation I just gave. So let's move now to the first resolution, which is approval of the financial statement for the year ended December 31, 2022 and discharge to all directors. I move to resolution #2. The second resolution is approval of the consolidated financial statements for the year ending December 31, 2022. Fine. Let's go to resolution #3, which is allocation of the financial results for the year ended December 31, 2022. Resolution #4 is related to topic 6 of the agenda and namely the approval of the special report of the statutory auditors concerning regulated agreements as referred to in the articles L225-38 and sequence of the French Commercial Code. We'll continue now with topic #7 of the agenda, which are 6 resolutions linked from one to the other about the remuneration of directors in compliance with the say-on-pay doctrine. Resolution #5 is approval of the remuneration policy and determination of the amount of the total annual remuneration to be allocated to the Board of Directors for the 2023 financial year. Resolution #6 is approval of the information mentioned in Article L22-10-9 of the French Commercial Code concerning the remuneration due or awarded to the corporate offices for the 2022 fiscal financial year. Resolution #7, approval of 6 variable and extraordinary component of the remuneration and benefits of all kinds, due or awarded to the Chairman of the Board and Chief Executive Officer for 2022 financial year. Resolution #8, approval of the remuneration policy of the Chairman and Chief Executive Officer for 2023 financial year. Resolution #9, approval of the fixed, variable and extraordinary components of the remuneration and the benefits of all kinds due or awarded to the Deputy Chief Executive Officer for the 2022 financial year. Resolution #10, approval of the remuneration policy of the Deputy Chief Executive Officer for the 2023 financial year. And now moving to the topic 8 of the agenda regarding the 11th resolution, authorization granted to the Board of Directors to enable the company to trade its own shares. And let's continue now with topic 9 of the agenda regarding the 12th resolution, which is a proxy to carry out all formalities. And we are now at the end of the voting process for the ordinary shareholder meeting. So let's move to the Extraordinary Shareholders' Meeting, starting with topic 10 and 11, which are linked from one another. Topic 10, reading of the report of the Board of Directors of the proposed resolution, the reading of the statutory auditor special report that Christophe just previously mentioned. So the Board of Directors' report on resolutions submitted to the Extraordinary Shareholders' Meeting is disclosed and it's fully in Page 240 to 242 of the '22 URD. And its addendum has been provided for in the shareholders' guide and on the company's website. The special report is disclosed and available on our dedicated web page and therefore, I will not with them out loudly today. So let's go to the voting of the resolutions on topic 12 and 13 and we will go through the same kind of voting process that we used before. So resolution 13 now covers several -- 13 to 15, sorry, covers several delegation of authority granted to the Board of Directors in order to act on the shares, securities and the share capital of the company. Resolution 13, delegation of authority granted to the Board of Directors to issue shares without preferential subscription rights of the shareholders to name beneficiaries. Resolution #14, delegation of authority granted to the Board of Directors to reduce the capital in accordance with Article L22-10-62 of the French Commercial Code. And resolution #15, delegation of authority granted to the Board of Directors to issue shares and/or securities given or capable of giving access to the share capital of the company reserved for members of the company saving plans without preferential subscription rights to the shareholders. Resolution 16, is powers for formalities and the shareholder meetings give full power to the bearer of an original copy or extract of the minutes of the shareholders' meeting to carry out any and all formalities that may be necessary. So that was the last resolution for the extraordinary part of this shareholder meeting. So we will now collect your voting forms and please make sure that they are completed. [Voting]