Siemens Aktiengesellschaft (SIE) Earnings Call Transcript & Summary

Ladies and gentlemen, shareholders, as Chairman of the Supervisory Board, I hereby call to order the 2021 Ordinary Shareholders Meeting of Siemens Aktiengesellschaft and assume this chairmanship in accordance with the Siemens Articles of Association. On behalf of the Supervisory Board and the Managing Board, I'd also like to personally welcome you, dear shareholders and your proxies, the journalists who've joined us online and all others who are following our Annual Shareholders Meeting today over the Internet. Ladies and gentlemen, the COVID-19 pandemic continues to rage. Major events involving many thousands of participants are still not possible. With the issuance of the so-called COVID-19 Measures Act, the German government has, however, established regulations for holding shareholders meetings in a virtual format. In October 2020, the German Ministry of Justice issued a statutory order extending these regulations until the end of 2021. With the approval of the Supervisory Board, the Management Board has decided to make use of these regulations for today's ordinary Annual Shareholders Meeting as it did for the successful extraordinary shareholders meeting on the 9th of July 2020. Our Annual Shareholders Meeting will accordingly be conducted as a virtual event, in which neither shareholders nor their proxies are present in person. We are complying with the legal requirements in force when we issue the notice of shareholders meetings at the beginning of December. These regulations, which, as required by law, we described in the notice in detail, also apply to today's meeting without change. In doing so, we are endeavoring to safeguard your rights as shareholders to the greatest possible extent. Thank you very much for joining us for today's Annual Shareholders Meeting. Now before we start going through the agenda, I would like to point out the following necessary formalities. Notice of the Annual Shareholders Meeting has been published in the Federal Gazette on the end of December 2020 in due time and form. Since that day, the notice or the notification of the Annual Shareholders Meeting, together with additional documents to be submitted, can also be accessed on the Internet page of the company and can be produced there also today. The motion of the association of the Siemens AG employee shareholders registered association in Munich have requested and attend into the agenda, and this has been published also on the 8th of January 2021. And since the 6th of January 2021 and also today, this motion can be seen on the Internet page of the company. The notification, including the agenda, the agenda addendum, the respective proposed resolutions of the management about all agenda items, as well as the proposed resolution of the association of the Siemens AG employee shareholders related to Item 10, have been sent to you together with the notification, and any respective documents to be submitted have also been sent to you upon request. There's one exception under Item 2, the Managing Board and the Supervisory Board, as was announced in the invitation, have made available and adjusted the application related to the appropriation of profits. And this is something which we discuss today, and there have been amendments. And the respective documents can also be seen here in the assembly room. There is the conference zone in the Werner-von-Siemens-Strasse 1 in 80333 Munich. The conference zone is also the attendance area of today's shareholders meeting. [ Jannes Kirkner ], notary public, will authorize this shareholders meeting, and I welcome him most cordially. He's on the stage, seated at an angle behind me at an appropriate distance. I also welcome here attending in person, from the Managing Board, CEO, Joe Kaeser; and the CFO -- sorry, and the future CEO, Roland Busch; and of course, CFO, Ralf Thomas. From the Supervisory Board, Werner Brandt, who I asked to stand in if -- in according to Section 21, Paragraph 1 of our Articles of Association, if I am prevented from chairing this meeting. And I would also like to welcome the proxies appointed by the company, Mrs. [ Luderer ] and Mr. Atzler. Other -- the other members of the Managing Board and Supervisory Board follow this Annual Shareholders Meeting via the Internet. It is possible to communicate with them via telephone. For our shareholders and their proxies, we broadcast this Annual Shareholders Meeting in full and live via our Annual Shareholders Meeting Internet service. Shareholders will get access by entering their shareholder number and their personal access code. Shareholders who have registered with a self-assigned access password to receive the invitation to the Annual Shareholders Meeting by electronic means can use this access password. The proxies of the shareholders are asked to use the access data, which was sent to you or to them. My introductory remarks as Chair of this meeting and Mr. Kaeser's and Mr. Busch's statements are being broadcast over the Internet and, to some extent, on TV for other interested parties, too. They are recorded and will later be made available on the company's Internet page. We have carefully investigated the necessary technical arrangements for the live broadcast and this, together with the commission service providers. The notary public have these arrangements explained to him in detail and was able to inspect the technology himself. Against this backdrop of these comprehensive preparations, we are convinced that we can hold the virtual Annual Shareholders Meeting properly and trouble-free in technical terms. Now if the broadcast is interrupted, despite these efforts, we would like to ask a little bit patience for a few minutes. If it is not possible to reestablish the connection, we will provide additional information via our Internet service or on our Internet page, www.siemens.com/hauptversammlung. There will be no stenographic minutes of any part of the Annual Shareholders Meeting. Video and audio recordings of the broadcast are not permitted. The attendance list is constantly updated until the end of the Annual Shareholders Meeting. As required by law, the list is available for inspection here in the meeting room. And in addition, you may also inspect it via the Internet service. And of course, I will announce the attendance later on. Unfortunately, it will not be possible today to give personal statements like during the usual general debate. It will, therefore, not be possible to ask questions or follow-up questions during this virtual annual meeting. At the same token, there is no right to make a statement or to put forward a motion. The registered shareholders and their proxies had the opportunity until yesterday and -- to submit questions via our Internet service. The Managing Board is going to answer these questions, of course, all the discretion within the framework allowed by law. And surely, it is our intention to answer all questions as is required to proceed according to the agenda. In the run-up to this Annual Shareholders Meeting, we have submitted countermotions, which must be made available. We duly published them on the company's Internet page in detail. Countermotions and election proposal of the association of the Siemens AG employee shareholders related to Item 3 and 5; countermotions of the shareholder Horst Schilling, Item 4 and 5; countermotion of the shareholder [ Hans-Jürgen Volte ] related to Item 7; and countermotion of the association of critical shareholders related to Item 3. As announced in the notice to the Annual Shareholders Meeting, we will treat these motions as if they have been put forward already at this shareholders meeting. The countermotions and the election proposals are of no significance any more. If the resolution is proposed by the management related to Item 3, 4, 5 and 7 have been accepted or adopted by the majority, who favors a countermotion or the election proposal has to vote against the proposed resolution by the management. This means you have to vote no. Voting right, that is today's votes can be cast only by postal vote or by authorizing the company-appointed proxies. Instructions which shareholders have given their proxies to date have been collected in our EDP system. And this is also true for the postal that's received. Until the beginning of voting, you can still change postal votes authorizations or instructions. Now please do so, use our Internet service, and this, of course, is the preferred approach. Changes by post, e-mail or telefax are possible as well. Such changes must have been received at the address which was mentioned in the notice to the Annual Shareholders Meeting not later than by the time the voting begins. I would like to ask you to send in these changes you may want to make in due time. And in this context, I point out the transmissions of the Internet might be slow. Votes cast according to instructions will be released by the proxies present in person later during the voting process using a mobile device. They will be considered like postal votes received in the voting result. Now shareholders who are registered in the shared register and applied in due time can submit objections against the resolutions of the Annual Shareholders Meeting via the Internet service from the beginning until the end of the Annual Shareholders Meeting. And this, of course, also applies to their proxies. If lodged, an -- sorry, an objection is sent directly to an e-mail inbox, which the notary republic is monitoring himself. Here, too, I ask you not to wait until the very last moment, not least because of the time delay already mentioned, which may occur during transmissions over the Internet. I would now like to turn to the -- to Item 1 of the agenda that is the presentation of the financial statements as well as the consolidated financial statements, the combined management report for Siemens AG and the group as of the 30th of September 2020 as well as the Supervisory Board report on fiscal 2019-2020. On today's speech, I would like to focus on the major, say, lines of our Supervisory Board work. And further, these can be found in the annual report, which is included in -- sorry, in the Supervisory Board report, which is included in the annual report. Ladies and gentlemen, the financial statements as well as the consolidated financial statements as well as the combined management report for the Siemens AG as well as the group for fiscal 2020 have been audited by Ernst & Young GmbH auditors and have been given -- and I have given their unqualified approval. Now the Managing Board as well as the auditor have explained the respective reports to the Audit Committee as well as the Supervisory Board. The Supervisory Board has approved of the financial statements after this audit. And this means the financial statements of Siemens AG have been adopted. Now ladies and gentlemen, the COVID-19 pandemic has been impacting our lives for nearly 12 months now. Our health was and is endangered. Our day-to-day lives are constrained. Now in this situation, Siemens has demonstrated impressive strength. In fiscal 2020, the company remained a reliable partner to its customers. In fiscal 2020, Siemens not only delivered an impressive operating performance; it also completed the largest structural realignment in its recent history. And it did so right on schedule. At the same time, the Supervisory Board successfully concluded the succession to a new Managing Board team. Now permit me to take a closer look at these company achievements from the perspective of the Supervisory Board. As I've already mentioned, Siemens operating performance was impressive. Today, many processes at Siemens are digitalized, something that's paid off in this time of crisis. The combination of digitalization and highly expert employees has enabled Siemens to adapt to the dynamic market conditions and even capture additional market share. In fiscal 2020, Siemens delivered a strong profit in the midst of the pandemic. And as the figures for the first quarter of fiscal 2021 demonstrate, the company is strongly positioned for the future. Now let's take a look at Siemens' structural realignment. Our Vision 2020+ strategy program has already been presented to you in detail at previous Annual Shareholders Meetings. Vision 2020+ focus on transforming the Siemens conglomerate into 3 powerful companies: Siemens AG, Siemens Healthineers AG and Siemens Energy AG. Siemens Healthineers was successfully listed on the stock exchange back in 2018. Since then, Healthineers share price has increased by roughly 2/3, a development that provides a strong foundation for the announced acquisition of Varian, a leader in cancer therapy. In September 2020, Siemens also completed the spin-off and public listing of Siemens Energy. This move created an independent company that is supporting customers and countries worldwide on the path to a sustainable energy system. In fiscal 2020, the Supervisory Board monitored the steps in Siemens Energy's spinoff and public listing very closely. These steps succeeded as planned, although the pandemic had drastically changed framework conditions. You, the shareholders, helped make this success possible through your very clear approval at the extraordinary shareholders meeting. Thank you very much for your support. The independence of Siemens Energy completes the implementation of Siemens' new structure. The realignment has already generated significant shareholder value. It's also created 3 companies with all the prerequisites for success in a new age. The 3 Siemens companies have the innovative power and agility to shape disruptive changes and not be shaped by them. Parallel to this structural realignment, the Supervisory Board brought the succession process for the Managing Board to a successful conclusion. It's the first time in 15 years there's been a plan that orderly transition at the top of Siemens AG. This transition was important because it's enabling us to immediately continue and even accelerate Siemens' transformation after the spin-off of Siemens Energy. At the conclusion of today's Annual Shareholders Meeting, Siemens will bid farewell to one of its greatest leaders, a man who has shaped this company like few others and is leaving behind a strong foundation for future generations. Dear, Mr. Kaeser, dear Joe, for the Supervisory Board, for myself personally and for all of us here, this is a very emotional moment. It's surely no exaggeration to say your departure marks the end of an era. You've served our company for over 40 years. For more than 7 of these years, you've been President and CEO. During this time, Siemens has renewed itself from the ground up. The first major strategic step was Vision 2020, which enabled Siemens to strengthen its competitiveness. It was not long before Siemens once again was one of the top companies in its industries. Most CEOs would have been satisfied with this accomplishment. But you, Mr. Kaeser, demonstrated your entrepreneurial vision by never letting up as your time in office proceeded. Instead, you once again accelerated the company's reinvention with Vision 2020+. At the same time, you also supported and planned an orderly succession in the Managing Board. In my view, this is every leader's most important task, i.e., to find a good successor and ensure a smooth transfer of the company's businesses. Vision 2020+. The transformation of the Siemens conglomerated to 3 powerful companies is your legacy to the next generation. Today, Siemens AG is more focused, more adaptable, faster and stronger than ever before. The company is fit for the future. On behalf of the Supervisory Board and above all, on behalf of all your colleagues at Siemens, I would like to thank you for your dedication to our company, for your over 40 years of tireless commitment for your life's work. Thank you. Thank you very, very much, Mr. Kaeser. Shareholders, at the end of March, we'll also bid farewell to another highly deserving colleague on the Managing Board. Klaus Helmrich will be retiring after 9 years on the Managing Board and 35 years of service to this company. Customer proximity has always been his top priority. Anyone who has seen him in talks with customers at the Hanover Fair, for instance, for example, notices this immediately. Very early on, Mr. Helmrich recognized the great potential of combining hardware and software. It was in precisely this direction that he further developed the businesses bundled today at Digital Industries. Dear Mr. Helmrich, on behalf of the Supervisory Board and the entire company, I would like to take this opportunity today to cordially thank you for your outstanding services to Siemens. In particular, thank you very much for your highly professional support for the succession process at Digital Industries. You are passing on a vast sum of knowledge. As a result, Digital Industries can optimally leverage all available opportunities and continue the successes of your time in office. Thank you. Ladies and gentlemen, a new management team will now lead Siemens into the future. It's a great pleasure for me to briefly introduce this strong Managing Board to you today. Roland Busch will assume the position of President and CEO at the conclusion of today's shareholders meeting. Mr. Busch holds a Doctorate in Physics and has worked at Siemens for more than 25 years. Over the course of his career, he's gained international experience in a wide range of key positions, for example, as Head of Siemens Strategy, as the Managing Board member responsible for businesses like rail systems and building technology and for markets such as Asia and the Middle East as Chief Technology Officer and for some time, also with Labor Director and finally, as Chief Operating Officer and Deputy CEO. In all these roles, Mr. Busch has distinguished himself again and again. In this connection, I'd especially like to highlight his profound grasp of technology. Mr. Busch identifies future technology trends at an early age, and he seizes the entrepreneurial opportunities they create for Siemens. In the past year, the Supervisory Board has had the opportunity to work with Mr. Busch more closely. Well, we've come to know him as an ambitious modern leader. He's open, visionary and a genuine true team player. But above all, he's passionate about Siemens and the opportunities ahead of us. Dear Mr. Busch, dear Roland, in your new role as President and CEO, you will have the full support of the Supervisory Board members. Our hearty congratulations. We wish you all the best, and are very much looking forward to working together with you. The new Management Board team also includes Ralf Thomas, Judith Wiese, Cedrik Neike and Matthias Rebellius. To this audience, Mr. Thomas, I believe, needs no long introduction. As an extremely competent CFO, he's been fostering and helping shape the company's successful reinvention ever since 2013. His experience will be of enormous value also in the next phase of our transformation going forward. The Supervisory Board appointed Ms. Wiese, Labor Director of Siemens AG, effective October 1, 2020. She's an internationally experienced HR Manager with valuable know-how in the transformation of global organizations. Under her leadership, Siemens will rigorously expand new forms of cooperation for the digital aid and accelerate the implementation of its sustainability strategy. Cedrik Neike has been a member of the Managing Board since 2017. In this position, he's been responsible most recently for Smart Infrastructure. Leveraging his many years of experience in digital connectivity and his orientation on innovation, he's advanced this business yet further. And as I mentioned already, Mr. Neike succeeded Mr. Helmrich as the managing Board member responsible for Digital Industries effective October 1, 2020. In fact, at the same date, Matthias Rebellius was appointed a member of the Managing Board for the very first time. In this position, he's responsible for Smart Infrastructure. Now in the past several years before that, Mr. Rebellius was the Chief Operating Officer for Smart Infrastructure. In this role, he was, of course, closely involved in enabling the business to tap new growth opportunities. Now with this new Managing Board, Siemens AG has a first-class leadership team, experienced, extremely competent and determined to fully exploit every opportunity for innovation and growth. On behalf of the Supervisory Board, I'd like to wish this strong new team every success in mastering the exciting tasks that lie ahead. Ladies and gentlemen, a new chapter at Siemens has begun. The Supervisory Board, too, is taking steps to prepare for this change through, among other things, today's Supervisory Board election. Ms. Leibinger-Kammüller and Mr. Wenning will leave the Supervisory Board at the end of this Annual shareholders Meeting. Ms. Leibinger-Kammüller has been a member of the Supervisory Board since 2008. With her great wealth of experience and immense dedication, she's supported the company's development again and again. Her contributions to the work at the Audit, Compliance and Nominating Committees have been particularly valuable. Dear Nicola, on behalf of the company and on behalf of myself, I would like to cordially thank you for your trust-based cooperation and support, particularly in making challenging decisions. Your focus on Siemens' welfare has never wavered. Thank you very, very much. Mr. Wenning has been a member of the Supervisory Board since January 2013 and is Deputy Chairman since September 2013. Mr. Wenning was appointed Chairman of the Compensation Committee when it was newly established a few years ago. Dear Werner, as Chairman of the Supervisory Board, it's been my pleasure to work with you very closely over the last 3 years. And your support has been very valuable to me and also to the Supervisory Board as a whole. Siemens' interest have also always been your top priority, and your analyses and recommendations have always been extremely relevant and very clear. You've always been someone we can truly rely upon. Thank you very much. It's been an honor for me to have worked with you. Now to find the best possible candidates for today's Supervisory Board election, the nominating process started early on. This process was based on analysis of the skills and expertise that the Supervisory Board needs in order to support Siemens in the next phase of its transformation. The Supervisory Board of today is proposing 2 new Board members for the election by today's Annual Shareholders Meeting. Ms. Grazia Vittadini is the Chief Technology Officer at Airbus and a member of the Airbus Executive Committee. Mr. Kasper Rørsted is CEO of the adidas AG. Both candidates are acknowledged experts in the sustainable transformation and successful digitalization of industries and companies. Ms. Vittadini and Mr. Rørsted would also like to introduce themselves personally in the form of 2 short video clips.

Ladies and gentlemen, distinguished shareholders, I would love to be here today with you at the Siemens Shareholder Meeting and introduce myself personally, but of course, due to the current circumstances, I cannot. And this crisis shows me clearly how quickly and rapidly we have to align ourselves with this new framework. And the last year, of course, this also entailed a basic monumental leap in digitalization, which changes our economy and our society. And we have to grasp this moment and seize it. Conquering challenge like this and tackling today's digital transformation is what I do. This is my strength, and that is why I'm in particular joy and pleasure to stand for election today as member of the Supervisory Board here at Siemens. For more than 150 years now, of course, Siemens has been the synonym for improvement and innovation through technology. Now I was born in the year of the first man on the moon and of the founding of Airbus. I also grew up in Italy and in United States. I stayed in Milan, aerospace and then through Eurofighter and [ Airbus ]. I ended up at Airbus where I'm the Chief Technology Officer right here on the Managing Board. In my 20 years at Airbus, I have worked across all levels and basically, all divisions, commercial aircraft as well as in defense and aerospace. Now as an engineer, I also had the unique opportunity to lead corporate audit, which is the task where I early learned how to collaborate with the Management Board and other levels. Now for 3 years now, I've been the CTO. What is the main core of my time here? Well, of course, developing global future technologies, managing technological complexities through knowledge and human diversity and creating solutions. Creating solutions, which make our product and our company future-proof, competitive and more sustainable. These are challenges, and of course, many companies are faced with. And it would be a true joy for me if I can help Siemens with my experience and my expertise, while at the same time, of course, getting inspiration from you. Now I would like to cordially thank you for your trust. And I'm looking forward to hopefully seeing you personally and getting to know you this year.

Siemens shareholders, unfortunately, I cannot be with you in-person, and that is why I would like to introduce myself here on this digital manner and [ send ] for election at the Siemens Supervisory Board. My name is Kasper Rørsted. I am Danish, 58, married and 4 children. Since October 2016, I've been CEO of the adidas AG. And on top of that, I'm also part of a committee at Nestlé. In the framework of my career, I was working for HP and Oracle, just to name a few. And that's why digitalization is not only more current than ever, but it's been in my life for a very long time, whether it's in the world of business or my private life. The pandemic, of course, has shown all of us that digitalization and transformation is not a luxury anymore. In our fast-paced world, we need to have agile and streamlined solutions for all of us in order to make sure that we can optimize preexisting and creating new business opportunities. In 2005, I changed to Henkel, an international manufacturer for cleaning products, beauty products and glues. There, I was responsible for a HR, IT and strategy. In 2007, I became the Deputy CEO. And from 2008 to 2016, I was chairing the Managing Board at Henkel. In that time, my team and I managed to take strong brands like [ Konzil ] to make it even stronger and making them extremely profitable and growing. Since 2016, I've been the Chairman of the adidas AG. And again, here, brand management and digitalization play a central role in order to really convince our customers. However, another topic is very near and dear to me: sustainability. Sustainability as a true core component of corporate life, but at the same time, we believe that we can change lives through support. And I believe it is great that Siemens is a leading technological company. I also believe that sustainability is a success for a long term -- the factor for long-term success. Now if you do so choose, it would be my honor to be part of the Supervisory Board at Siemens and take responsibility for IT digitalization and sustainability and much, much more. Because of course, as a passionate athlete, I know that great teamwork is the best feeling in the world. So thank you very much.

Right. Dear Ms. Vittadini, dear Mr. Rørsted, thank you very much for your trust in Siemens and your readiness to support the company in this next phase of its further development. The members of the Supervisory Board and of the Management Board are looking forward to working with you. Now at today's the Supervisory Board election, I'll also be standing for reelection as a member of the Supervisory Board myself today. And I would like to thank you, as Siemens shareholders for cordially -- very cordially for your trust over the last few years as well as all the different colleagues here at Siemens for their productive cooperation. I'll be very pleased to continue to contribute my efforts, expertise and enthusiasm to the next phase of Siemens' transformation. In the years ahead, the Supervisory Board intends to foster the further development of the new focus of Siemens in a targeted manner. Innovation and digitalization and the realization of the related opportunities for growth are to be key priorities in this connection. In addition to that, of course, the Supervisory Board will concern itself even more intensively with questions of sustainability. In the past few years, Siemens has succeeded in reducing its CO2 emissions faster than planned. And the company will, of course, rigorously continue its drive to achieve complete climate neutrality. With our solutions and products, we're also well positioned to help our customers become carbon neutral at a faster pace. Ladies and gentlemen, Siemens began its own reinvention early on. And from a position of strength, this is something that's paid off in fiscal 2020 and, of course, also provides a strong foundation for the future. I'm particularly proud of how our company's roughly 300,000 employees and colleagues have mastered the challenges of COVID-19. On behalf of the Supervisory Board, I would like to thank you very much, all of the employees actually and also the employee representatives here at Siemens AG and all group companies for the impressive successes and the progress achieved in fiscal 2020. I would also like to take this opportunity to thank the members of the Supervisory Board for their outstanding commitment in the last year. The Supervisory Board had many more meetings than previous years in order to complete the company's structural realignment and implement the succession process at an early stage. I'm extremely grateful to all the Supervisory Board members for our trust-based cooperation. I would also like to thank you, Siemens shareholders, for your ongoing support for the major changes here at Siemens over the past few years. Rarely in history has a 173-year-old company succeeded in reinventing itself so decisively and so successfully. I am proud and also thankful for what we have achieved together. We are now at the beginning of a new promising chapter. How we can defeat COVID-19 in 2021. After the pandemic, digitalization will further accelerate. Now the global economy will reorient itself as well, and the focus on sustainable solutions will intensify even further. The new Siemens AG is excellently positioned to succeed in this new world and to shape our future. Thank you very much. To Mr. Kaeser, it is now my pleasure, on behalf of all of our colleagues, to give you a surprise. It is a virtual going-away present that comes from the bottom of all of our hearts. In a short clip, we'd like to take a look back at your Siemens career. And we would also like to thank you once again very, very much for the time spent together. After the film, Mr. Kaeser will present his report to the shareholders; and Mr. Busch, the future President and CEO, will then address you as well. I wish us all a successful virtual Annual Shareholders Meeting. And with that, I would like to thank you very much. [Presentation]

Well, the history has already been told and the story. Thank you, Jim, for those kind and appreciative words. And of course, I'm very happy about them, but we all know that without the support of you, in particular, at the head of the Supervisory Board, it would not have been possible. And I also know from some investors that there are reservations as to whether you can handle all the offices you hold. But I can say, I've never seen a Chairman of the Supervisory Board who has actually provided the support and assistance and doing everything in his power to ensure that things work as you have done. And therefore, I would recommend the shareholders to make sure that you get Mr. Snabe where he can send up your interest because you're in good hands with him. Today, 2 members of the Supervisory Board are leaving, Mr. Henning and Ms. Nicola Kammüller. Mr. Henning, you have been with us for a very long time. You're one of those who made it possible with such a constructive and critical and clear-cited support for the transformation that has accompanied us in all the team, which has been so successful. Mr. Nicola (sic) [ Ms. Nicola ], I've tried to find the words for what holds us together. Looking at the switches to the world's best computer tomograph, all I could think of was it is an ownership culture to behave as if it were our own company, our own money, our own reputation that we have to support or lose. And in Germany and the world, that is the culture that we have experienced, and it's been a great pleasure and an inspiration to work with you in this company and to see everything being done in this way. Shareholders, ladies and gentlemen, I'm pleased that you're taking part in today's virtual Annual Shareholders Meeting of Siemens AG, and I welcome you most formally. Under the present circumstances, it is right to have the virtual event because health and safety of the people is absolute priority. I hope that it will be possible next year to meet again in person. But if not, if it shouldn't be possible, then I'm sure we shall find legally binding solutions for an interactive dialogue. We will have to find them because it's necessary for both sides. Let us to take concentrate, therefore, on discussing what is possible and what matters most. And what matters most to us at Siemens? What is it that drives us on? We have stated our purpose as wanting to create value for all stakeholders, for all those involved in the company, the shareholders, customers, employees and for society as a whole. I think the pandemic has made it clear to all of us very clearly that companies are not just part of the economy but are also pillars of society. Optimizing this value creation is the goal of our long-term strategy, which we call Vision 2020+, and it always has been. But it couldn't happen overnight. The company had to be prepared first. We need to focus much more on our activities, and the primary aim is to initiate the transformation in the company's health care, energy and industrial infrastructure sectors in a proactive way. This strategy is working. In the most difficult conditions, at times of a global pandemic, we are saying how robust the Siemens companies are and how efficient they are. Both fiscal 2020 and I think I can say the excellent first quarter of fiscal '21 show this very clearly. Clearly, also in comparison with our competitors. The Siemens AG share price has reached a new all-time high. I think it's risen in the last couple of days. And this evening, we shall see how the capital markets judge today's news on the first quarter and the prospects for the fiscal year. The Siemens Energy share price has driven by around 60% since the company's public listing in the end of September 2020. And the stock market value of Siemens Healthineers is in the range of other global companies like Bio or BMW. Who would have thought it? A division of a big group being compared with the biggest brands in Germany and the world. And with that, ladies and gentlemen, is above all, the result of hard and reliable work by a great team. Our colleagues at Siemens in the past few years have consistently implemented everything needed in every part of the company. They've implemented what the management team outlined. And the supervisory bodies -- and I stress this, the supervisory bodies as well provided constructive support. I know that I've tested the limits of the Supervisory Board at times. And I feel grateful for it. But at the end of the day, you have to stand up and be counted for what you've done. This supports the constructive criticism of feedback, and the cooperation and collaboration is something which I am very, very grateful. The entire global Siemens team can be proud of what is achieved in the last few years. And of course, in the last quarters, well, we have made Siemens fit for the future and have strengthened the potential of the Siemens businesses. The Siemens ecosystem consists of 3 strong independent companies based on respected global brand and procured values: Siemens AG, Siemens Energy and Siemens Healthineers. Each of these companies can now concentrate on the specific [ realignments ] of its market and respond quickly to the changes there. With our realignment, we've given our businesses the entrepreneurial freedom they need to pursue their own development in their respective markets; but also, and this is important, also, the entrepreneurial responsibility to prevail against their competitors and to create value for their shareholders. The chances of achieving these goals have increased significantly with this realignment. The risks and the consequences of underperformance have also risen, of course. In March 2018, we successfully listed Siemens Healthineers on the stock exchange. Since then, the value of Healthineers has increased from EUR 28 billion to nearly EUR 50 billion, almost 80% at the top of the range. The company has been able to increase its capital at attractive terms on this basis. And its stake at Varian, the market leader in the field radiation therapy providing cancer, it has made an important transformational step. The acquisition meant that the stake of Siemens AG and Siemens Healthineers has dropped to 79% from the original 85%. And I think we can all say that such an important step, such a transformational development wouldn't have been possible as a simple division in a conglomerate. On the 28th of September 2020, in other words, about 4 months ago, there was an exemplary hiving off process under unprecedented conditions. We spun off and listed Siemens Energy on the stock market. After initial selling pressure, do you promise to take the effects, the share developed really encouraging, and the market value rose from about EUR 15 billion to nearly EUR 25 billion at its peak. Admission to the MDAX from the 21st of December 2020 was, in other words, only a few months after the stock exchange launch, was only a logical consequence. What was far more crucial, however, was the question of what impact of spin-off would have on the new Siemens AG, with the hopeful re-rating of the share actually happening. It was an important question. And ladies and gentlemen, it came about faster and more strongly than we had hoped. The spin-off acted like a turbo on the share price of Siemens AG. On that one day, the share price rose by more than 9%, and that increased our market capitalization in Siemens AG by about EUR 7 billion. In the following days, the Siemens AG share gained further ground. And only 2 weeks after the public listing, it regained its level before the spin-off. And this re-rating has continued ever since. With the spin-off and public listing of Siemens Energy, we've completed the last major step in our company's structural transformation. The creation of financial value has been clearly visible right from the start. The foundations for optimizing value creation as the third wave of Vision 2020+ have been laid. But also, the socioeconomic aspects of our companies have been included in Vision 2020+ because it is our intention to ensure that all stakeholders take part to create value for all stakeholders. And this means turning our back on a doctrine, which was advocated by the economist Milton Friedman 50 years ago in a sensational article, which was published in New York Times. He said, "Corporate social responsibility is to maximize profit." That was the headline. And that is how the triumphant march of shareholder value began. Shareholder value became the criterion for a company's success. It said the business of business is business. And that maxim is still deeply embedded in many people's minds today. People say in Good Times and also on Twitter you read it from some people, advice to CEOs is cobber, stick to your last. Actually, we should have realized long ago that short-term maximization of profits cannot be the sole meaning and purpose of a company. All the relevant stakeholders are entitled to benefit from a company's activities. Over 150 years ago, Werner von Siemens, or Werner Siemens at the time, spoke of an inventive spirit that should be employed for the benefit of people and as a higher law in the interest of the whole, that is of society. Today, we call it purpose, a company's destiny. When we're talking about stakeholders, it's best to begin with the customer. With the question of whether Siemens creates value for its customers, the best people to ask is the customers themselves, and that is exactly what we do. We do it with the Net Promoter Score. In other words, it's a means of determining customer satisfaction. And using this well-known method, we'd regularly ask customers if they would recommend us to others. Over the past few years, we have steadily increased this recommendation rate to 72% in the meantime, and that is a significant and very encouraging improvement because satisfied customers come back to us. And that is also something which our global reorganization can handle so well. Siemens is at home everywhere in the world at all times. And at the same time, having satisfied customers means we need competitive products and solutions for them. And that's where innovation comes in, innovation, what we do to create value for customers. Leading technologies are a very important tool here, of course. And that is why in the past few years, we have continuously increased spending. It is called spending, but it's actually investments in research and development. In fiscal 2020, the expenditure amounted to EUR 4.6 billion. And compared to 2013, that is an increase of 35%. More than 40,000 employees work in research and development Siemens worldwide. In fiscal 2020, they came up with 5,000-plus inventions, and 2,740 patent applications were filed. Today, in research and development, we are concentrating on future-oriented fields such as the Internet of Things, artificial intelligence, digital twins and, of course, decentralized energy systems as the utility companies for future. Customer satisfaction and innovation are the natural prerequisites for growth. And when we talk about growth, ladies and gentlemen, it's worthwhile taking a long-term view. Seen historically, Siemens' revenue grew fastest in the era of Dr. Heinrich von Pierer. Also, because at an early stage, he recognized the potential of the Asian market and, above all, the Chinese market. Even if in the later days of his term of office, there was a dark chapter in the company's history, it's still appropriate to acknowledge his lifetime achievement. After years of stagnation, in 2014, we're able to stimulate growth again with Vision 2020, and we accelerated the dynamism in the years that followed. Growth creates opportunities, opportunities for everyone and, in particular, also for our employees. And this applies above all when it comes to jobs. A lot has been written about jobs, particularly when there are structural adaptations needed. But ladies and gentlemen, what is not written about so often is that since 2013, the comparable number of employees has grown by a net 19,000 employees. Today, about 293,000 people work for Siemens AG, and about 93,000 for Siemens Energy. At the end of fiscal 2020, 245,000 employees were Siemens' shareholders. Hardly any other company can boast so many employee shareholders. And what few people know, between 2015 and 2020, Siemens hired 222,000 new employees. That figure, of course, includes replacements. But that, too, reflects a conscious decision for the future. Ladies and gentlemen, we not only create jobs, we also offer our people attractive opportunities and prospects for the future. For employees in structurally weak regions, we have set up a fund for the future that has earmarked up to EUR 100 million for measures such as continuing education and qualification. Siemens Energy is not included. Siemens AG invests more than EUR 300 million a year in employee training and further education. We also do this because we want and need expert and motivated colleagues. And we do need them because employee satisfaction is a valuable asset, ladies and gentlemen. And that's why we regularly ask our employees for their opinions. At the last employee survey in November 2020, only a couple of months ago, more than 160,000 employees took part. That is a participation rate of 67%. That response alone testifies to our employees' high level of commitment in the company, and it is reflected in the most important questions as well, such as ask about the positive future at Siemens? Or do they see prospects and opportunities? The result was that 76% of those questioned answered that they were happy to be working for Siemens. They answered positively. That was an improvement of 14 percentage points compared to the previous survey. 47% of our employees said they would recommend Siemens to a friend as a good place to work. And what pleases me most personally is that 86% of our employees believe that irrespective of their sex, ethnic background, age, sexual orientation or disability, they can be successful at all levels of Siemens. That, I think, is a very good development and good feedback. But even so, here in particular, these are key questions concerning tolerance, and we need to work on the remaining 14%. Shareholders, for you, too, we create dependable value. And that hasn't always been the case. One important benchmark here is the total shareholder return and this increased value for investment over a lengthy period with reinvested dividends. From the end of July 2013 to the 25th of January 2021, the value of the Siemens share climbed by more than 136%. In contrast to that, the total return on the DAX 30 in the same period was only 64%. With an investment in our former main competitor, that have even been a negative return of almost 44%. That wasn't always the case either. One important reason for this development is that, over the years, we've been able to stabilize growth and profitability and then increase it significantly. First of all, however, we had to stop the worrying decline of EBITDA margin compared to our competitors. It's in the second phase in 2014 to 2016 that we were able to stabilize the margin. And closing the gap from 2016, 2017 onwards, that went hand-in-hand with the coming into effect of the Vision 2020 concept. In the fourth quarter of fiscal 2020, we were able to further increase our lead over competitors with an achieved EBITDA margin of 17.7, that's the earnings before interest, tax and depreciation. And we see that Siemens, in the first quarter of fiscal '21 has continued to develop very positively. This relative operational strength was also evident overall in fiscal 2020. Under historically difficult conditions, we have done well compared to others. With the cutbacks in new orders from our customers, there was a decline of 7% with the new orders because of the pandemic, but revenue remained modest flat at EUR 57.1 billion. The decline of 2% was far less than had been initially feared in the pandemic. The book-to-bill ratio, in other words, the incoming orders relative to sales, was 1.05, which shows that the overall demand remains structurally intact. At our industrial businesses, the adjusted EBITDA, that is earnings before interest, tax and amortization of intangible assets, dipped slightly to EUR 7.6 billion. It was only a slight -- slightly lower than the previous year. The margin was 14.3%. It was virtually -- exactly the same as the previous year. Net income of EUR 4.2 billion was impacted by charges to realignment, among other things. The CFO is particularly happy when we look at the free cash flow, which did particularly well. In fiscal 2020, we saw gratifying increase by 10% to EUR 6.4 billion. That is the highest value reached in the past decade. And in times of crisis, it is a very strong signal of the robustness of the company and also its reliability. For fiscal 2020, we're proposing a dividend of EUR 3.50 per share to the Annual Shareholders' Meeting. That corresponds to a payout ratio of about 70% of net income after tax, and is thus above the target corridor which we set ourselves of 40% to 60%. If we exclude the 10%, roughly, market value of Siemens Energy, the dividend actually corresponds to the EUR 3.90 dividend of last year. Shareholders, increasing share prices are fed by profitability and also by credibility, and this credibility is reinforced if our forecasts are reliable. Our guidance for 2020 was a moderate decline in comparable revenue and also an increase in orders and a book-to-bill ratio of greater than 1. Because of the pandemic, like virtually all other companies, in the course of the year, we had to adjust the annual guidance. The adjusted guidance was then met. Fiscal 2020 is thus the 7th year in succession in which we've reliably met our guidance. Although I must admit that the quality of target fulfillment in 2020 was slightly lower. Ladies and gentlemen, times of crisis are times of management. Crisis management can't be delegated. At Siemens, we set 2 priorities: the first priority was to protect the health and safety of our employees and our partners and to ensure their safety at all times. The second was responsibly maintained our operations in order to give our customer suppliers the best possible support. We set up a task force for the crisis throughout the company immediately, and we succeeded the first wave successfully. What we learned during the time was to master the second wave, which is far more drastic, without any noteworthy impairments. So far, this is a remarkable achievement by our global team, which is dealing carefully and effectively with the different regional conditions. And so in a record time, we made it possible for 220,000 employees at Siemens AG and Siemens Energy to work from home on a mobile basis. The pandemic is far from over, but trust in our company has grown because we've mastered the crisis well so far, and we have helped society to alleviate its impact. Ladies and gentlemen, shareholders, along with ensuring profitability and reliability, the company's strategic realignment has also created value. As a focused company, the new Siemens AG now has the higher rating. Since the 30th of June, the value of your shares has grown by almost 36%. It even reached the all-time high of more than 40%. And with the figures, we stopped on the 20th of January, and we noted this, guess what would have happened regarding the all-time high, but we can assure that the figures are continuing to rise. DAX, on the other hand, in this period, achieved an increase of 11%. Of course, we're happy, we are very happy about this positive development of Siemens Energy share. Satisfied shareholders are satisfied owners for us as well. Responsible owners for us are very important because the responsible owners, and for us, the employees at Siemens, what matters is the value the company creates for society. This value is reflected in the creation and preservation of jobs. But it's also reflected in how we honor our responsibility for our environment, the space in which we live and in which future generations will live, how we fulfill our commitment to society and also how with good management, we can show ethical responsibility and long-term orientation. Here, too, Siemens has clearly improved in recent years. Let's begin with the environment and a clear commitment. We support the United Nation's Sustainable Development Goals and the Paris Climate Agreement. And I'd just like to mention a few examples, how we're implementing that in practice. The technology of Siemens AG and Siemens Energy enable customers to make their production, their plants and their buildings more resource efficient and to improve operations there with lower emissions. Our customers throughout the world, with our technologies, save 671 million tonnes of carbon dioxide emissions every year. That is more than the annual carbon dioxide emissions of Indonesia, for example. Even before the Paris Climate Accord was signed in December 2015, Siemens was the first major industrial company to commit on its own initiative to achieving carbon neutrality by 2030. We are honoring that commitment. Since 2014, we've reduced our own emissions by more than 54%, and we're continuing to focus on our internal systems to achieve and maintain sustainability. We've learned lessons here from our unfortunate commitment to a coal mine in Australia. It was a small order for locomotive signaling systems, suddenly became the yardstick for our commitment to the climate. In the future, our sustainability committee will, in relevant cases, meticulously review projects for the ecological, social and economic risks. You will find a review of the entire breadth of our activities in the field and the results involved in our annual sustainability report, where you'll find much more detail. Ladies and gentlemen, social responsibility also means commitment. It means collaboration, helpfulness. Siemens employees have done an outstanding job during the pandemic. They've kept the company running. And that's been a splendid achievement, whether working from home or in the field or directly physically present in production and in the plants. They have continued to supply customers with products and services in the most difficult circumstances. And in this way, they have stabilized supply chains and supplies for people. They've not only done a lot for the company, they've also committed to society and made generous donations. Their donations to the COVID-19 Relief Fund, which Siemens matched, has helped people throughout the world. Our Caring Hands initiative has provided more than EUR 15 million for aid projects. This shows how deeply social responsibility is anchored in Siemens employees. This commitment and these achievements by employees should also be recognized and honored, not just with a round of applause and some appreciative words, but also with an appropriate financial reward. The managing Board has therefore decided that every employee, below the senior management level, will receive COVID-19 bonus of up to EUR 1,000. It leads to a total amount of EUR 200 million. That's a lot of money, but it's also a powerful message. The message is: we stick together in times of crisis. It's also the story behind the figures that you can see here. In the pandemic year 2020, profits, dividends and management Board compensation declined. The latter actually quite significantly. Research and development investments, however, and the number of employees have remained the same because we are committed to solidarity. And we are going to focus on the future of the company. And this includes not stopping investing in research and development as soon we get a headwind because we say that the ratio of capacity utilization is not so good at the moment. It's a sign of a modern social partnership in difficult times. It is in a temporarily difficult situation that we are maintaining everything as far as possible, and it could not be confused with need for structural corrections. The development of the company in all categories is respected and recognized worldwide. For 5 years in a row now, the influential Fortune Magazine has rated Siemens as the world's most admired company in this industry. That is particularly gratifying to see this in a highly respected American publication for a successful German company. And the success earned by all the employees who do their best for Siemens every day and to talk what is happening at Siemens apart from production and business, after work as well. Ladies and gentlemen, Siemens is doing well in many respects today, and especially in terms of reputation, as we've just seen. But of course, that was not always the case. Many of you know that. It's not all that long ago that Siemens made headlines like these: major raid at Siemens, EUR 200 billion slush fund at Siemens, Siemens scandal alarms U.S. Stock Exchange authorities. I experienced that period personally. I've just been in office for a few months as new Chief Financial Officer. On the November 15, 2006, more than 200 police officers searched Siemens offices here in Munich. And soon after that, it was suspected that this was probably the biggest known corruption scandal in Germany's economic history. This was followed by investigations in Germany and abroad, and enormous damage was possible. The dimension couldn't be estimated for the company. And above all, the trust of the employees, customers and shareholders in the company was shattered. Siemens was standing on the brink of disaster. This scandal compared to its dimensions turned out well as it happened, and the economic consequences were unusually manageable. And that's something we owe to many people on many levels of the company. But it's also thanks to my predecessor, Peter Löscher and the former Chairman of the Supervisory Board, Gerhard Cromme. I'd like to take this opportunity to pay tribute to their achievements in this matter. At this point, I should also like to recall one person in particular, Heinz-Joachim Neubürger. According to the investigation's files, he was the member of a former corporate executive committee who pushed most strongly for dense compliance regulations and for changing past practices. He tried to avert the disaster. And in the end, he paid the highest price. He paid with his life. I mentioned this because I think it's important for the future of this great company. Without the success of the Vision 2020 restructuring concept and the strategic future orientation of Vision 2020+, our company would probably still exist, but certainly not with a share price of EUR 130, maybe EUR 10 and half the employees, just like other conglomerates on this and the other side of Atlantic that failed to see the signs of the times. But without clean, ethical and responsible corporate governance, the company would have lost its license to do business and thus, its existence. Ladies and gentlemen, after working at Siemens AG for more than 40 years, today is the day I leave the company. I've met so many great people, and I've spent so many fascinating things in that time. If not everything has succeeded, many things have. The question is, what remains? What will matter most in the future? I believe the great achievement of the last 7 years has not been the new setup of our businesses and the resulting economic strength, but that it is that we've succeeded in seeing ourselves as a fundamental part of a global and multilateral community of values. One looks to Siemens, when it comes to see what is needed for a better world, for a more sustainable planet, that we have the solutions, the products that lead people out of poverty, heal diseases and improve the quality of life. We talk a lot about the deaths in the pandemic, the COVID-19. But far, far more people die every day of cancer. Siemens Healthineers is going to change just that. That, ladies and gentlemen, is a purpose. We know that it's in our own interest. In a multilateral world, where the rules vary considerably from one country to another, to stand up for our values. We know that it's good for our company to champion openness, tolerance, diversity, respect, inclusion and equality. Because when we do that, we promote social cohesion, [ inter-ethnic cooperation ] and, ultimately, stable conditions that benefit society as well as our company as a whole. And in this respect, interest and values are in harmony. Many people think that when you talk about politics or comment on politics, that it's something we should not touch. But ladies and gentlemen, it is the contribution of a company that counts in society because we know that what can make our company strong, it will only be possible if we can concentrate our forces. We know that our company, if we're going to be economic-strong, only then can it meet the greater responsibility needed. That is why there is no alternative to growth, innovation and robust profitability. Inclusive capitalism is at the successful integration of all these stakeholder interests. And that's why I say that the economy of the future needs a new interpretation of the business maxim, for our success in the pandemic clearly demonstrate that crisis-proof returns presuppose durable values. The maxim, the business of business is business, may still have its advocates. But I think the ultimate business, the ultimate business of business is business for society. Ladies and gentlemen, time will show who is right. But at any rate, I am glad that for fiscal 2020 and the first quarter of fiscal 2021, we have made great strides towards achieving the goals of Vision 2020+. And we've got much closer to them. There's still a lot to do, of course, but the plus never ends. But now the time has come for me to hand over the company to the new generation. When I presented Vision 2020, I said to the public at the time, and especially to you, our shareholders, and I quote what I said at the time, "I personally vouch for making sure that the next-generation inherits a better company, that is my mission, that is my responsibility, that is my promise." I'll leave it up to you to judge whether I have kept that promise, it's not my job to do so. It was particularly important to me after more than 15 years to ensure an orderly and well-planned succession because a strongly focused company, also needs a strong, suitable CEO. In the age of Industry 4.0, the new Siemens AG needs a person at its helm, who has a profound grasp for digital technologies and platforms and who has the ability to lead the company into this age. That person is Roland Busch. And with that, I hand over, in the true sense of the word, to Roland Busch. Roland, I am very happy that you're taking on this task. You're the right man, in the right place at the right time. I wish you and your team all the best and every success. It is always good when you have a strong CFO by your side because he can protect you from many things. And he protected me, at least, from saying things that I perhaps shouldn't have said. So Ralf, I'm particularly keen to thank you for always being reliably at my side. Thank you. And that, ladies and gentlemen, I have finished. Mr. Trapattoni said I have finished. Thank you.

Ladies and gentlemen, shareholders, before I talk about our future, I would like to say, thank you. Thank you to all those who've ensured that Siemens, despite all the challenges, can look back at a solid year and can look forward to an excellent prospects for the future. The people I'm referring to are: our team of more than 290,000 colleagues worldwide, our customers, our suppliers and partners and surely you, the owners of our company. Thank you all very much also on behalf of the entire managing Board. Well, I'd like to put a special spotlight on 2 people today. People who've dedicated their entire professional lives to Siemens. People who have shaped the company and made it successful. Dear Joe, you took on leadership of Siemens at a time when our company was really struggling hard. And back then, you resolved to pass the company on to your successor in a better condition, and you've kept this promise. Yet, I'd also like to thank you at a very personal level for your trust and your support. Over the past 15 years, we've experienced a lot together. I have fond memories of the strategy workshops in which we defined milestones for our company and of the many meetings with customers and partners, but also with political leaders, meetings that often focused on sensitive issues and critical projects. And there was one very special memory, the grand finale, so to speak, it was our trip to Egypt 3 weeks ago. Together as a team and after difficult negotiations, we successfully concluded a multibillion euro agreement for Siemens Mobility. That was another extraordinary experience. Dear Joe, you can be sure of this, our farewell to you today is by necessity virtual. But our gratitude for your work and for you, for who you are as a person, is enormous and very real. Thank you very much for everything you've done, and the best wishes for the future from all of us. Ladies and gentlemen, Klaus Helmrich too will be leaving the Siemens Managing Board soon. Klaus, we still have a few weeks before your farewell at the end of March. But this day wouldn't be complete without paying tribute to you, your passion for technology, a passion with both -- we both share. Your unparalleled industry know-how, your tireless service to customers and our company. These and other characteristics set you apart and were crucial to your success. Big thanks go to you, too, from all of us. And to you, Jim, and to all the members of the Supervisory Board, I would also like to express my sincere gratitude for the trust you've placed in me over the years. And for entrusting me today with the responsibility of being President and CEO of Siemens AG. When I was young, I never would have imagined that things would turn out this way. To be honest, I didn't actually want to join Siemens after completing my studies. That was presumably my little rebellion against Erlangen in Germany, where nearly everyone works for Siemens or at least has a relative with us. What brought me to Siemens despite this intention? I had an exciting topic for my doctoral thesis, for which I received support from the company and especially from a brilliant physicist, [ Gunter Ries ]. In this way, I became familiar with the very interesting topics being worked on at Siemens, and I got to know fascinating people. I had the opportunity to work on projects that were just far away dreams at that time but are reality today. So I landed at Siemens after all, and I stayed because I was always presented with new opportunities and new challenges over the course of more than a quarter of a century. Siemens is a unique technology company, and it will play a key role in shaping the future, in particular, in combination with the other members of the large family of Siemens companies, with Siemens Energy and Siemens Healthineers. Our company, your companies, ladies and gentlemen, is on the threshold of a decade of opportunities. I say this because the digital transformation, which has revolutionized the consumer business over the past decade, has only just begun in our industrial markets. In the decade ahead, the entire business world will reinvent itself. Digitalization is completely transforming the backbone of our economies, industry, infrastructure, transportation, mobility, energy and health care. And the pandemic has further accelerated this trend. It's clear that only those who reinvent their companies, their business models and their entire industries will be among the winners of this major transformation. And this is exactly where Siemens comes in. No other company can help our customers transform themselves and their businesses like we can with our technologies, with our automation, with our hardware and software, we combine the digital and physical worlds no other company can help drive this transformation process across such a broad spectrum, yet digitalization is much more than just a retrofitting process. Together with our customers, we can transform the everyday lives that improve the lives of billions of people. We contribute towards climate protection, for instance, by making industries more efficient and transportation more sustainable. We offer solutions for a better life in growing cities around the world with smart infrastructure and smart buildings. We help companies and economies become better connected, more intelligent and more resilient, so that they can hold their own in the next wave of globalization, and we use digital solutions in health care to make diagnosing and treating illnesses faster, easier and more affordable. As you all know, the global economy needs new solutions to grow sustainably. This situation presents our company with major opportunities for sustainable growth. Just a few examples from several of the growth markets we serve. Worldwide investments in automation are set to grow by more than 5% annually over the next 5 years, and the corresponding investments in smart buildings are even to grow 14%. The transportation market will grow 25% over the next 3 years. And investments in electric vehicle charging infrastructure alone are to total EUR 110 billion worldwide by 2030. Our markets are the growth markets for this decade. At Siemens, we've executed the biggest structural realignment of our company in its history, and we've turned a conglomerate into 3 focused companies that will shape their markets. Our goal now is to turn Siemens into a focused technology company that grows sustainably. We don't just measure sustainability in terms of high growth rates, strong profitability and strong cash flow. It also includes having a higher percentage of recurring revenue from service and software as a service and includes creating new jobs. In addition, this sustainable approach includes growth that is achieved in combination with continuous reductions in our CO2 emissions, that uses fewer resources in general and that reduces CO2 emissions in our customers' operations. And we are doing everything in our power to be and remain the leading technology company in these markets. This is why we've been building and expanding our digital business for years now by making acquisitions, totaling more than EUR 10 billion and by making massive investments in research and development. In June at our Capital Markets Day, we'll provide a more detailed explanation of the strategies that our businesses will be pursuing to achieve these goals. Today, however, I can already tell you about the 4 strategic priorities that we'll be focusing to continuously improve our businesses. First, customer impact. We want to know what our customers need as early as is possible, ideally, even before the customers themselves know what they need. Therefore, since our colleagues in the regions are the closest to our customers, they will play an even more important role in the future. This approach has already panned out during the pandemic, while we were able to keep our businesses running and sign contracts, others had to keep their plants closed. We are also creating new ecosystems and technology platforms for our customers. One ideal example here is Railigent. This platform from Siemens Mobility offers railway companies intelligent maintenance from train doors and air conditioning systems to transmissions and couplings. And it doesn't just do so for Siemens products alone but also for those of our competitors. In this way, we make our offerings more useful and more attractive for our customers. Second, technology with a purpose. Our goal must be to help our customers solve their concrete problems and become more sustainable and more efficient in the process. Here are just a few examples from among the thousands that arise in our daily work. With our customer, GlaxoSmithKline, we've developed a solution to shorten the development time for vaccines by nearly 1/3. With the German railway company, Deutsche Bahn, we have work around hydrogen powertrains to replace climate damaging diesel locomotives. Comfy, our cloud-based platform for managing buildings, enables us to offer our customers an innovative and secure solution for getting their employees to their workplaces in a fast and safe way during the pandemic. And of course, we are already using Comfy at many Siemens locations. And in collaboration with SAP, we are combining the strength of both partners. For our customers, we are building a comprehensive solution for the fourth industrial revolution, a solution that will tear down silos and will drive digitalization. People are another important priority for us. Because without them, there will be neither innovation nor progress. That's why we want to empower our colleagues, but also our partners and customers to take matters into their own hands and become the best they can be. We help our customers implement changes successfully, for example, by holding training sessions for their employees. Yet, we also strengthen and empower our own colleagues to enable them to solve problems on their own, while acting with responsibility and integrity and upholding the highest standards of conduct. We have confidence in people. That is why, for instance, even after the pandemic, we'll pursue a work model that strikes a healthy balance between mobile working and working at the office. Because it's outcomes that matter to us and not the amount of time spent at the office. I was very pleased that our new working culture was well received around the world. But I was particularly proud of the story of 2 colleagues from Canada that recently gained attention in the press and on social media. [ Aaron Genest ], heads a team for software applications at Siemens Canada. One of his team members asked him if she could work part-time during the pandemic. [ Aaron ] denied her request. He told his colleague that you didn't need to feel guilty about taking the time to make sure her kids were learning at home, that they would work together to make sure that she could find the time she needed to ensure that she and her family could stay healthy in the pandemic and get through it well. That, ladies and gentlemen, is exactly the approach and attitude that we need at Siemens. That's the solidarity that [ Aaron ] and his team member as well as many managers and colleagues are displaying in their work and in the examples they set. And we want to continue to cultivate and strengthen this solidarity because we are convinced that it definitely isn't enough to merely bring the best people to the company. We also will have to give them the trust and freedom they need in order to develop their potential. Ladies and gentlemen, that brings me to the fourth strategic priority, which we refer to as growth mindset, a positive forward-looking attitude. We don't insist on sticking to what we know one can do today. Instead, we always want to continue to learn and continue to grow. This is why we invest more than EUR 300 million annually in training and continuing education. That's why we are expanding our offering of digital training opportunities. And that's why we're employing new tools in our human resources development processes to foster our employees' development and challenge them and to attract the brightest minds to Siemens. This growth mindset has always been part of Siemens' DNA. Again and again, we've reinvented the future. We know that you have to be open to new things in order to be successful. You have to be bold to take risks. You need perseverance to ensure that you aren't deterred by the inevitable setbacks. And being successful requires team spirit because in an increasingly diverse and complex world, it's not enough when a single individual sets the course all alone. To find the best solutions, we need a diverse range of perspectives, insights and experiences. That is why I am counting on every one of our more than 290,000 colleagues and on the strong management Board team. On Judith Wiese, Ralf Thomas, Cedrik Neike and Matthias Rebellius. They've had very different career paths and bring diverse areas of expertise to this table. But they share in-depth experience and an understanding of our customers and employees as well as our technologies and markets. Together, we'll drive this company's progress. Ladies and gentlemen, as Team Siemens, we want to transform the every day and improve people's lives, just as Siemens has done again and again for 173 years. To accomplish this, we are leading by example. We are making our contribution to achieving the United Nations Sustainable Development Goals, for instance, by supporting education and training initiatives and by continuing to reduce our CO2 emissions. I'm aware that many people see the digital transformation as a challenge or even as a threat. For me, however, it's above all an answer, an answer to the questions posed by the major issues of our day, climate change, globalization, urbanization and demographic change. Digitalization, the process of integrating the physical world into the digital world represents a gigantic leap forward for our customers and for their industries and markets. Digitalization will help us all achieve growth and prosperity while using fewer resources. In a nutshell, it will help us build the world in which intelligent manufacturing, smart energy systems, smart buildings and connected mobility will make all our lives easier, healthier and more sustainable. Building this world with our customers, that's what we've set out to accomplish. You see, even 27 years after joining Siemens, I still can say, like on the very first day that I'm looking forward to the future, I'm looking forward to the possibilities it holds, and I'm looking forward to shaping it with you. Thank you for your trust.

Thank you, Mr. Kaeser. Thank you, Mr. Busch. In addition to the presentations by Mr. Kaeser, Mr. Busch and myself, I expressly refer you to our annual report. In its relevant chapters, you will find detailed explanations about many issues which we've addressed. It also includes: the report of the Supervisory Board, the compensation report, the explanatory report about information required according to Sections 289a and 315a of the German commercial code and the statement of the management together with the corporate governance report. In addition, I would like to explain briefly the resolution proposed under Item 7 about the compensation of members of the Supervisory Board. This resolution is required following the amendment of the company's act by the second European shareholder rights directive, ARUG II. The current compensation arrangement in Section 17 of the articles of association is essentially the result of a resolution adopted at the shareholders' meeting in January 2011. An amendment adopted at the 2014 shareholders meeting introduced compensation for the Compensation Committee, newly established at the time but, otherwise, did not change the compensation arrangement of 2011. The system proposed to today's shareholders' meeting is mainly aimed at achieving simplification of the compensation arrangement for the Supervisory Board. The new arrangement is scheduled to come into effect on October 1, 2021, and will provide for the continued payment of fixed compensation. The amount of the compensation is not in the focus of the changes proposed. Only the compensation for work on the Audit Committee is earmarked for a moderate increase while the compensation for work on the Executive Committee and the compensation committee is planned to be lowered to the level of the innovation and Finance Committee. In return, compensation for work in several committees is planned to be no longer credited or reduced. Finally, the attendance fee is planned to be increased to EUR 2,000 but will be a single payment if several meetings are attended in 1 day. In total, this will result in a reduction. We've explained the system of the compensation for the Supervisory Board members behind these proposals in detail in the invitation to this shareholders' meeting, and we hope you will agree to Item 7. A vote on the approval of the system of the compensation for the managing Board members is not planned today. A resolution of this kind has been adopted by the shareholders' meeting on the 5th of February 2020 with a large majority. Under Item 9, that is about the amendment agreement regarding the profit transfer agreement agreed with Siemens Bank Gmbh, Mr. Thomas is going to give you more details also about the development of the capital stock and about the acquisition and use of treasury shares. Regarding Item 10, included in the agenda upon request by the association of Siemens AG employee shareholders, the Managing Board entities Supervisory Board proposed to reject the resolution proposed by the association. The association proposes to amend the articles of association so as to determine today that in future, at possible virtual shareholders' meetings, shareholders can also ask questions during the ongoing shareholders' meeting. We are in favor of an open constructive exchange with our shareholders, but do not consider the proposal convenient or expedient at the present time. The provisions of the law on measures against COVID-19 in the context of virtual shareholders' meetings will be in effect only until the end of 2021, and the statutory framework for virtual shareholders' meetings held after this time has not yet been outlined. This has yet to be stipulated and defined by legislature. The proposed amendment of the articles of association would determine a single aspect of a virtual shareholders meeting today. However, today, we cannot yet assess how it will be addressed in a future legal framework. It is not sufficiently foreseeable which specific implications it would have, like which technical, organizational or legal efforts or even risks it would entail. Before details about holding a virtual shareholders' meetings are determined by the articles of association, we should wait which specific provisions will be defined in this context by legislature. Therefore, the management is against the proposed amendment of the articles of association and proposes to vote no regarding the resolution proposed by the association of Siemens AG employee shareholders under Item 10. Ladies and gentlemen, at this point, we end the freely accessible broadcast of this Annual Shareholders' Meeting. I say goodbye to all those who can no longer follow the Annual Shareholders' meeting, and thank you for your interest.