AGM 2018

May 8, 2018

Ladies and gentlemen, shareholders of Deutsche Lufthansa. I would like to open the 65th AGM of Deutsche Lufthansa. And I would also like to welcome the shareholders, the guests, and the representatives of media. I'm very happy that so many of you have come despite the very good weather. We have a lot of registrations and, I cannot take conclude that more people will enter this hole. In this case, please move to each other so that everybody finds room for today's AGM was published in the Federal Gazette on the 23rd March of 2018. It includes the agenda, the proposals of management, the resolution, and other items. And I would like to welcome all members of the Executive Board and also of the Supervisory Board and the honorary Chairman, Her Weber. Mr. Kirsten Fontshank, our military public certifies the minutes of this AGM, you've got quite a lot of information at the equity station points. And here, you can find a lot of information. It is a special pleasure for me to make you listen to the Gong which I have to use when I call you for the voting procedures. It sounds like this. I future take into consideration that my oral, explanations or other information will enjoy priority. This time, we won't have any blocks for the voting papers. But you've got a special card for the ATM. Please don't you lose it This year, we are going to vote with the 8 of these cards. And therefore, I would like to make yourself familiar with the voting procedures In case you want to leave the ATM prematurely, please have in mind the information on the back have somebody who will be your deputy we have a number of items on the agenda. If there are any counter motions, please enter your requests for the floor. Please use the forms at the table on the left hand side of where you sit. And if you've actually announced this already, you have to also do this in writing, I now come to item presentation of the adopted annual financial statements, the approved consolidated financial statements, the combined management report for the company. And for the group, the report of the supervisory board including the explanatory report of the Executive Board, on the statements pursuant to sections to 89A1315A1 of the German commercial code, the financial year. In accordance with your vote, the Supervisory Board commissioned PricewaterhouseCoopers with the audit of the annual accounts of the group, annual accounts of Deutsche Lufthansa AG, the summary accounts and the management report as per 31st December 2017, as well as the system for the early identification of risks. The auditors submitted their declaration of independence to the supervisory board. Subsequently, the priorities of the auditing process were determined The auditors also approved the system for the early identification line non financial report pursuant to the implementation act regarding the guideline on corporate social responsibility, which likewise received an unqualified opinion. On the 8th March 2018, the Supervisory Board's Audit Committee discussed the details of the audit report with the auditors and the CFO, auditors were present at the Supervisory Board's meeting on 14th March 2018, explaining the outcome of their audit and answering questions The Supervisory Board conducted an in-depth review of the annual accounts, the group annual accounts, the summary accounts, the management report, and the combined non financial report. These were not met with any objections. The supervisory board followed the recommendation of its order committee and unanimously approved the group annual statements as well as the combined non financial report. The Supervisor Board also supported the executive board's proposal of distributing a dividend of we are pleased to be able to offer you once more the option of a scrip dividend this year. The Supervisory Board would like to thank the Executive Board and the employees of Lufthansa Group for their hard work and their net commitment during 2017. And I would like to add that I'm very pleased to be here today because this is a great company and all who have contributed to success, particularly the employees have deserved your applause. This was not a tempest to pest your plans. But you will be given another opportunity to clap your hands later. Ladies and gentlemen, I would now like to ask to give a review of the 2017 financial year. Afterwards, I'm going to report on the activities of the Supervisory Board and following that, you will have the opportunity ask your questions on any item of the agenda. That means we're going to have a general debate as well. Point out that the supervisory board is extremely satisfied with customers' work. And we unanimously agreed at its meeting on 14th March of this year that he will be appointed, again, as the CEO of Lufthansa Group. For a period of 5 years. Won so much applause, Mr. Spohr, that you will really have to give your account. But first, we'll watch a so. Harrick and Malia, Shareholders. Frequent travelers. I would also like to bid you a warm welcome to the 6th 5th Annual General Meeting of Deutsche Lufthansa. As we could see in the video clip, we have a lot of good news a report about the past financial year about the development of the 3 strategic pillars about the progress that was made In terms of modernizing your company, I will be speaking about topics that affect us and that we ourselves can have an effect on. I will conclude my report with an outlook for the development of our business in 2018, but first, Let's start by reviewing the past financial year. 2017 was the most successful year in the history of the company, and the 3rd year, a 3rd record year in a row that was our best result ever by far. Modernization process is heading in the right direction. And this is borne out by the figures, but not only by them. Shareholders today, we can show that we have become more modern in every respect and much more efficient And of course, that is something that is close to your heart more profitable. Your company and the Lufthansa share have reached new heights. And we have worked very hard to accomplish this. We have spent the past years addressing the most important issues and restructuring Lufthansa, years That were testing times for our customers, our staff, and for our shareholders. However, our efforts have paid off At last, we hear news about the success of Lufthansa and not only about the problems as in previous years, that strengthens our belief in the course that we have set. Everybody profited from the modernization of the company, our customers, our staff, and you are holders. But triangle is in balance again. We have continued to improve our products and services in passengers flew with airlines at the Lufthansa Group in 2017. This is a record number. It can also be seen in the many awards with Lufthansa, Swiss and Austrian Airlines being voted the 3 best European airlines. Lufthansa, in fact, reached even greater heights in December as our airline with the crane became Europe's 1st and only 5 star airline. This was the crowning achievement among all the awards and in time for the 1 100th anniversary, of our Crane symbol. We have proved that tradition and sustainability are no contradiction on the contrary, they represent a unique Lufthansa combination and a competitive advantage that cannot be copied by our competitors. Our staff also profited from the modernization process. We have modern our collective wage agreements and succeeded in reaching a sustainable industrial piece with all professional groups. We have entered a new social partnership one that deserves the name. In our company, we are developing a culture of constructive solidarity, and this can be felt. I personally experience it every day in talks and discussions and the results of our staff and customer surveys confirmed this positive trend. Last but not least, you, our shareholders, are also benefiting from the modernization of your company. On the one hand, through the development of the share price, the Lufthansa share was the winner at the Dax stock market last year. It's all a one 100% share price increase more than ever before in a single year and more than any other share listed on the stock market, even taking into account the share price development this year until yesterday, it still leaves us with a share price that has more than doubled. On the other hand, you all benefit from the development of the dividend, the outstanding result of 2017 gives us leverage for a higher dividend view shareholders have remained loyal to us throughout the difficult times. And now we would like to give you something in return by letting you share in our success with a 60% higher dividend. This is why we will be proposing a dividend of per share. The same highest dividend since Lufthansa became a listed company. Ladies and gentlemen, or other key performance indicators are also pointing in the right direction. Revenue increased by 12.4% to almost 1,000,000,000. We increased our result by almost 70 percent. The adjusted EBIT, our key performance indicator for economic success stands at 1,000,000,000. That marks an increase of over 1,000,000,000 compared to the record levels in 2015 2016. We invested 1,000,000,000, 1 third more than the year before. Despite these higher investment as free cash flow doubled to 1000000000. At the same time, net very important, our unit costs adjusted after one time effects have gone down by 1.8%. To sum up, we can say that we can look back on an outstanding business year 2017 a year, which seen Lufthansa group grow stronger. We are well equipped. We are even more financially strong. We are more innovative and before, and we are strategically well positioned. Our company has emerged stronger on its 3 strategic pillars. Segments are important, Network Airlines Eurowings and our service companies. All have contributed to our not only over the past year. The 1st pillar is and remains the strongest pillar, namely the Network Airlines. Lufthansa Swiss And Austrian Airlines have increased their result by almost 50%. They have earned 1,000,000,000 and again improved their profit margin by 2.6 percentage points to almost 10%. I'm particularly pleased by the fact that Lufthansa, the heart of the group, is back in top form. Our core brand is leading the way and providing stability to the entire group. This success motivates us not to diminish our efforts. We will continue to improve quality, for example, through cabin equipment and services. Lift sensor will take the next step towards further improving services for instance, its business class this year. Swiss is modernizing its fleet that will set new standards in terms of comfort, economic efficiency and environmental fringing as the airline will very soon have one of the youngest fleets in Europe. In March 2018, Austrian Airlines introduced the new premium economy class on all long haul flights. And we are pleased with the collective wage agreement concluded last week that brings Austrian Airlines back into the fold of reliable providers. In 20 20, we will start receiving our first Boeing 777x, which will be equipped with an entirely new business class. We will also improve digital services, especially on board internet is a particular feature that enhances the possibilities for our passengers. It this summer, this means that we remain the leading European airline in terms of digitalization and digital technologies Last year, we were awarded, surprised by the International Air Transport Association, IATA winning the award most digital airline in the world. And of course, it is clear that our customers benefit from the high level of digital technology is because they save time in travel in greater comfort, but customer loyalty is also enhanced. And of course, we generate additional revenue despite all the success that we have across all airlines, but never at the expense of quality on the contrary. Let me give you a couple of examples. Most visible example, of course, is the modernization of our fleet. In 2017, we took a new aircraft into service on an almost weekly basis. These new aircraft cost about 20% less to operate than the aircraft are replacing, we will continue to modernize our fleet in 2018, and we will be receiving a new aircraft every 2 weeks, but delivery problems at some aircraft manufacturers impose a limit on us. However, we will also continue to harmonize our fleet. The group overlapping standardized A320 family has the latest example here and will make a more flexible in the deployment of aircraft. And of course, it will also save us money. We have agreed on the reduction of cost with Frankfurt Airport operator for airport for 2018, but that is not enough. Our hub here is still the most expensive airport in our system. And in spite of the cities, does not yet fulfill the adaptations of our customers with regard to premium quality. That must change. And as long as it does not change, we will shift growth to Zurich and Munich and Vienna. Yesterday, we already ordered 2 additional Boeing of an aircraft for Swiss. And now to our 2nd pillar, our point to point traffic Eurowings. Eurowings has become established. It is ready the 4th largest airline in the European traffic and is the fastest growing airline in Europe. The development of the key performance indicators is satisfying Eurowings double the revenue 1,000,000,000. It improved its results by 1000000 last year, which marks a strong performance especially given that the airline had to bear significant burdens. The Eurowings aircraft loan as a result of the Air Berlin Bankruptcy. That is obviously down to the high ramp up costs at the same time, Eurowings last year reduced its unit costs by over 6%. Our aim remains to reduce unit costs by 20% until 2020 compared to 2016. About 210 aircraft mean that the largest growth will continue to occur at Euro Wings. Eurowings is already the 2nd largest carrier within and it remains our platform for consolidation in Europe. At the moment, the integration of part of Air Berlin And Brussels Airlines is the greatest challenge and the item on our agenda that needs to be given highest priority. The figures of the first quarter of 2018 show that there were adverse effects on our balance sheet and on the revenue. Months. However, these are one time project and integration costs, and the money is well invested, I can promise you. The investments will allow us to secure as the number one in our home markets. And now on to the 3rd pillar our service companies, the aviation services. They too have recorded very good results. Lufthansa Cargo in particular managed an impressive turnaround of Freight's airline earned 242,000,000, an improvement in earnings of almost 1,000,000 and a strong in terms of revenue, we are again the largest trade airline in the world. Nevertheless, the logistics business remains volatile. Our target team is aware this and they're preparing for further developments. They will carry on reducing costs and working on even more efficient processes while at the same time continuing to improve quality. Yesterday's orders of the new 777 is another example of the progress that is being made. Of course, we are also introducing digital technologies on the entire freight chain. Flufthansa Teshnik posted an excellent result of 1,000,000 on the same level as the previous year. Our global market leader continues to grow through new partnerships and will also be modernizing its existing locations that will lead to a further improvement in the competitiveness of the company that already services and maintains every 5th commercial aircraft worldwide. At the same time, Nick is one of the most innovative companies in the industry with its digital maintenance systems. Our engineers were the first to develop a digital aircraft twin called Aviatar. This optimizes forward looking MRO services. LSG also positive a positive result, posted a positive result. The company contribute to the group result. However, 1,000,000 less than the year before, which was down to the transformation of the in his European business, which was necessary in order to increase the results during the coming years. This concludes the look at the individual business segments of lift sensor group, but let's move on now to a couple of other topics that affect us and that we can have facts on. Of course, you're all experts on the aviation industry, and you will all agree with them with our assessment that passenger figures are going to continue to grow in the foreseeable future. Last year, passenger figures worldwide rose by about 8%. And with over 4 billion people taking to the skies of experts, alright, these figures will double during the 20 years. Lufthansa Group will share on this growth with its companies. We are very pleased that this year alone, we will be using 8000 new staff. Every year, we receive far in excess of 100,000 job applications We are pleased about the great As you can see, Lufthansa Group is maintaining its modernization course, consistently and continuously. However, with all this joy about our success, there was always gratitude and humility that we need to show gratitude for what we have accomplished because that is what we had to fight hard to achieve. But above all, gratitude for an accident free year, this is and will always remain the most important thing report also in remembrance of the victims of the 24th March 2015. We also feel humbled as we look back on the history of this traditions deemed company, an eventful history with up downs, but a major success story that has been written by many generations and some representatives of this history are here among us today. It is the history of a powerful brand that goes from strength to strength. And of course, sorry that we would like to continue writing this year. We will celebrate a special anniversary at Trademark, the Crane designed by the graphic artist, Otter Ferler, will celebrate its 100th anniversary crane symbolizes our identity, and it has done so ever since the founding of the old Lufthansa. It is our trademark and part of our history, even though the world has changed fundamentally since the early days of the crane. Technologies have made quantum leaps forward globalization and digital technologies have completely changed our company and our working environment. And yet, the crane has remained It has always been part of the societal technological and the economic development of Lufthansa. From the very outset, we have been pioneers, we have been explorers. We crossed frontiers and already set standards very early on in the founding year of the old Lufthansa, our predecessor us sent 2 Juncker aircraft on the 1st East Asia expedition. Our pilots flew 10,000 kilometers and traveled for over 5 weeks before finally in Beijing. Today, the airlines of our group fly this route in 9 hours nonstop four times a day. We have always struck out a new directions. We have always been pioneers and remain, so to the state, for example, with the introduction of new aircraft or digital technologies. And the crane has always been with us it has become the most famous trademark for our entire industry, maybe even the most valuable asset to us. Promises the very highest level of service. It stands for premium. It is a simple assessed class quality, excellent service, technical and flying expertise of our pilots and engineers. It symbolizes reliability and innovation Most importantly, the crane symbolizes trust. Especially in turbulent times like these, many people look to companies for to get their bearing and opt for brands that they can trust. Lufthansa is one such brand, that was recently borne out when we were voted Germany's most trusted brand to celebrate the 1 100th anniversary our crane. We have also polished our appearance that too is part of our modernization process. There was much discussion going on at the beginning of this year, inside and outside the company. And that just shows the power of the emotional bond to our brand and its symbol. Ladies and gentlemen, to sum up, I would like to address another topic that is important to me. The industry has reached a turning point competition remains harsh, which can be seen for instance, with the bankruptcy of Air Berlin last year. German air traffic has lost market shares for the 6th consecutive year to foreign competitors. Germany is our home market. Germany is an attractive market, but Germany is also very cost intensive market where taxes and fees are very high. At the same time, we face too many restrictions The conditions here in our home market need to improve, and that's why we need the support of politics. Air traffic, tax alone, cost German airlines, 1,000,000 in the last year. We paid more than 1,000,000 in aviation security fees and other countries these costs are borne by this state. In addition, subsidies also at a tort competition, but the topic that affects us most at the moment is the quality and The problems are particularly visible at the security checks where thousands of passengers are missing their flights because of the infrastructure that is no longer adequate or maybe it is even outdated. Other countries in Europe are showing how things could be done better, for instance, in Amsterdam or London where they have much more efficient processes in place. The flights are all start on the ground. And this is why we need the right policy there. If we do not have the right policy in place, we lose customers to other airports and countries. All stakeholders need to act on concity airports and airlines politics and the federal authorities. The German market remains extremely hard fought. A total of 160 airlines are currently flying to and from Germany, and that is too many in the long run. That too has an effect on the European airline market, but we believe we are again strong enough to play an active role in the European consolidation process. Our strategy of Network Airlines and point to point airlines, combined with our aviation services, offers us the best perspectives and opportunities for the future. We have become competitive again, we can invest and we can grow in the future. Those are the foundation for our future success. Ladies and gentlemen, you know that Air Transport today is an indispensable component of globalization, It is indispensable for an open society for international understanding and cultural exchange. It is also an indispensable component of the economy in our exporting nation of Germany. We all benefit from open markets. We benefit from more diversity and transparency. We benefit from freedom, democracy, and international co operation. Global challenges such as climate change or increasing migration flows can only be mastered with extensive global one condition for this is mobility, global mobility. That is what we work for every day 3 65 days a year. Today, again, the 750 aircraft the lift times the group will be taking off and landing over 3000 times and flying almost 400,000 passengers and 5.5 ton 5500 tons of freight safely and reliably to their destinations and other regions and cultures. We are proud we are proud to make globalization more understandable and human and to fill this abstract term with life. This is we have tapped our new brand campaign, say yes to the world. This sentence represents our attitude because we will not let up in saying yes to the world. We will not relent in our efforts to get even better. We must become better that challenges will not become any less challenging in 2018 nor will they become any fewer. We are expecting another eventful year the air transport industry with many unpredictable trends, geopolitical uncertainties and rising fuel prices. We just announced the figures for the 1st quarter of 2018, we are off to a good start into the year. Our network airlines are growing above all Lufthansa and Swiss. Lufthansa Cargo remain on course in the future of the entire group. Looking at 2018, I can tell you 2 things today. 1, we remain on a clear course to our forecast remains unchanged, we expect a result that will be slightly below the record year of 2017. And you know that we're always very cautious with our predictions and forecasts. Ladies and gentlemen, people expect a lot from Lufthansa. But that is a motivation to us. We will continue to do everything in our power to keep the interests of our customers, staff, and shareholder and balance. It is our firm belief that success can only continue working on this. In the future, the topics on the way they have remained the same, increasing quality, reducing costs and improving efficiency. All of this is in line or needs to be your Lufthansa, your company is backward belongs. At the top, among the best of the best in the industry. For that, I would like to thank staff, our employees are the ones who have made all of this possible with your thanks to your efforts. You have always shown commitment you have never given up, we are very proud of you. You are simply the best in our industry. And we are also we are very grateful to you and we know that we can manage all future challenges. A big thank you also goes to the customers. You have been loyal to us for decades. Also during turbulent times, you value us, you challenge us. You help us to improve and to continue to my members, of my colleagues on the executive board, but of all the management, we will do everything in our power to continue inspiring you your loyalty and of course, also your patience. You have stood by us and you have believed in us. Thank you. The confidence and stay with us. We merit your trust. Dear customs, Boris. Thank you very much for your presentation. The printout of your speech will be available within short at the information stand. I would now like to briefly speak about our activities in the supervisory board, we met five times for meetings And the members of the meetings of the supervise Report and its committees were present in 90 5 percent of the events. In the center of the Supervisory Board, We had the economic development of the Lufthansa Group and its companies. And we concentrated very much on Brussels Airlines And also, Air Berlin played a very important part and we concluded agreements between Lufthansa and procured 61 aircraft. Then in December, we audited the efficiency of our activities And we also talked about a diversity concept for the executive board in May 2017, we agreed on a modification of the CEO remuneration, which will be valid from 2017 It will be paid out after And the multi annual assessment basis of the variable remuneration will be presented. At the end of 24th September 2017, Wolfgang Mayer Hooper, gave up his mandate since his election in the year of 2013, he had been chair of the Supervisory Board and he had been the CEO of Lufthansa Tuznick. What 20 years and then the CEO, and he very much coined the destiny of Lufthansa Group. The Supervisory Board, and I personally would like to thank Maier Hooper for his outstanding achievements and his personal properties because he's very much coined the culture of Luftanzer. We will not forget his intellectual curiosity and the fact that he took new ways and we will not forget his new escort tumor. He is an art standing Lufthansa at Lufthansa member. As of the City, Werner Plant gave up his mandate. He had great experiences in the Supervisory Board and as director of the audit committee and we owe him a lot of things. With the end of this AGM Robert Kimmitt is also to give up his mandate with his great international experience and his broad network. He's played an outstanding role in the activities of Lufthansa. We thank him very much for his expertise and support at any time. On 9th March 2018, the honorary chair of our Supervisory Board, Doctor. Wolfgang Rohler passed away at the age of eighty eight years. He had been a member of the Supervisory Board for many years and was the chair since 1990 3, we owe him the upgrading, privatization and restructuring also in difficult times and T led together, entrepreneurial representatives and shareholders, we will remember him Many of you might the Havrilla, personally, he was a fabulous personality I think we should thank him with another applause. Beyond this, we would also like to thank the labor representatives who leave the Supervisory Board, everybody has contributed a lot. Everybody in his or her personal asank, Doris Krueger, Birkett Weinreich, Nikolay Power Place, and Ecarte Lieb, Jan William Markfart, As Mulan and Andreas Stapo, A very special thanks to all of you. Ladies and say goodbye to some members means we have to appoint new ones. We are pleased to announce that 4 veteran holder representatives are running for reelection, Ambassador, Miriam Shapiro, Carsten Klobel, and Mika Ilnillo's. Mrs. Superior and Mr. Miller's were legally appointed to the supervisory board, and now they are running as regular candidates. I would like to ask 3, the 3 candidates to introduce themselves briefly the English introduction of Missus Zapiero will be translated It has a Miriamsa Piero. In Aufthansa, Breberghandauf. Most of these circulating high tests have not Ms. Inan Fortress, it's been, and then for Eineken, starting up on this letter yet in Washington, D. C, Ihaba And Williams College to Deird on Ihaba and New York School of Law in East Promoviet. Issap and then on receipt listed shown in Dinfra Einiktenstatinindariki Ronka, Arbaitre, our MRson Ministerium Department of State as Verastiguerperaterin as Directorin from Orcopecia, Angelaten, Haiten in Natrona and Zijiazrat, Alsperatto and Presidentin, won't Als Handers be off tacked? 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Here, Tatre Lish, our Dorskyle Trax, does Schrumfstein airline rating a heightened hat onswa as Einskei Airline in Europa. From Lufthansa, Alfon, Angeli Gong, Von Frankfurt, Nachael Martynhoppe from Kazakhstan, Fiber End, Brook Daphon, V Deepakasierra, Per 100,000,000. Besa, Usmeteda, Airline, Metasier Maske Flonberg. We have recent assesses feel a asphalt wrong in the Loaflatgate on this Lufthansa sanfa and Fortlish Garden, At least Sia and Snimt. I think that this Aina dehaft and Tyler does approach the law cancer is the face card, Emma Wirtha to learn on Gibongen and Supazan. Nakhmana Karishli Hinteustelong, Indian after that, the Lufthansa in October, 5 1000 and 6 when each writer in Diza are by Farfando of Donswa Algovita Smit Glied. It's Ruda Mr. Graf Horn, within end and with Glieden. The that's on the name, Wider Hyn Afton Patter in Novath's zone cited on Vazoo Tatsu R button on the FRONDAR Kontin, Zulu, Gignan, owned Inan, the Entyce, Aidenen, Oh, Filent Bank, yes, Filent Bank for the Afnet SIM card. Thank you, Mrs. Shapiro. I beg for your forgiveness. We have to bring the original and the translation into line. Next time, we will do this better. And I'm happy to say that the greatest city in the world, namely Cologne, will also be mentioned here at today's AGM. Mr. Knoebel, please. Unfortunately, he comes from Dusseldorf Mr. Clive, thank you very much for introductory remarks, ladies and gentlemen, ladies and gentlemen, shareholders, I would like to use this opportunity to today's AGM to introduce myself as a candidate for the supervisory board of dot Lufthansa Aki. I'm Carsten Knobel, forty nine years old, married, proud father of 2 children, I have been on the Executive Board of Henkel AG. I've also been CFO. I don't need to say whether headquarters are, of course. I'm responsible for financial affairs, mergers and acquisition, Worldwide acquisition, procurement, IT and services from 2019 to 1995, I studied businessadmin and Technical Chemicals at Technical University in Berlin. Ever since I started my position with Henkel, I held various leading positions in Europe and in Asia, in research and development, marketing finance and controlling M And A. Of course, strategic priorities at Henkel currently are on Digital Technologies in the company. Worldwide rollout of our supply in activities, value adding harmonization of our IT systems, and automation of all the relevant processes, I am particularly focused on enhancing efficiency and introducing digital technologies. That is something that needs to be done across all companies in the industry. In future, companies face greater challenges in terms of flexibility that held true for Henkel, but also for the aviation industry. However, I'm also a football fan just like you, Mr. Clai and as the Deputy Chairman of the Executive Board, I also hold a position for Fortuna Disendorf, Disendorf Football Club. And of course, we are working hard on continuing to make the club more professional in order to be successful to a similar level in our neighboring town of Cologne just managed to rise in the league and the football league. And of course, that is a confirmation of the successful work we done. I don't want to go into any further comparisons, of course, with other cities. Of course. I am very keen to see how Disa Joff will perform. Against Cologne in the Champions League, and I would be happy to contribute to continue the success stories story in the future. Since January of this year, I have been legally appointed at the supervisory board. I have been a member of the audit committee on the supervisory board, and I would be very pleased if this mandate was confirmed by all of you and if I could continue my work, thank you to all of you. Thank you, Mr. Knover. Now, Mr. Nieles, please. Ladies and gentlemen, first, I wanted to gain your sympathy by saying that I'm from Cologne, but, since Mister Noble talked about football, I'm not so sure. I will merit your sympathy. Or you married your good opinion. My name is Michael Nilles. I'm father to 2 daughters, and I'm pleased to present myself to you as a candidate for the supervisory board. I would also like to use this opportunity to introduce myself to you for more than 20 years I have been working in digital Technologies, especially in an industrial environment. I studied economics. Information systems. After obtaining my degree, I went to China as a software engineer. Afterwards, I worked for Bosch Rexhort, And since 2009, I have been working for Schindler Group as Chief Digital Officer. I'm responsible for introducing Digital and also for developing new business models based on digital Technologies. My links to Lufthans were founded by my experience as an internationally active businessman. And ever since 2015, I have been a member of the supervisory board of Lufthansa Technik and Hamburg, which gave me an in-depth insight into the work of Lufthansa. Digital Technologies is not just a fad we all know that the internet is established. Companies in particular are affected by digit technologies today. On the one hand, we see new digital platforms bring up everywhere, but then there are also keywords such as blockchain, the internet of things, all these are disruptors. This is the official term that we use. But of course, they will also create opportunities for growth for big companies. Customs were already explained. The progress made by Lufthansa, for instance, thanks the Aviatar platform and other innovative applications that are being used to improve the travel experience of customers. I would be very happy to serve on the supervisory board of Lufthansa and to Bring to bear my experience. Thank you very much for your attention. Thank you, Mr. Nellis. I think you are aware why we have proposed these candidates to the Supervisory Board because they're all excellently suited. I would like to inform the shareholders that the Supervisory Board pointed me as its new chairman at the meeting held on the 25th September 2017. Further details can be found on pages 6 and following of the annual report. Now I would like to ask Ulrich Svensson to give legally required statement on the capital increase in the last financial year. 4, we start the general debate. I'm required to make the following declaration pursuant to the German Stock Corporation Act. In 2017, Again, partial use was made of the authorized capital B created by the AGM in 2014, with the aim of issuing new shares to staff and manage of Deutsche Lufthansa AGhi and its affiliated companies. For this for this purpose, the share capital was increased by a par value amount of nominal euros by issuing 985,125,000 new shares with a prorator value of with regard to the share capital and an due price of per share. The executive board based the issue price on the stock market price of the Lufthansa share. Compared to the stock market price, the issue price set by the executive board did not contain any premium or discount. All new shares were issued to Lufthansa employees as part of the staff shareholding program. The shareholders' subscription right was already excluded when the authorized capital B was created by the AGM. The exclusion of the shareholder's subscription rights was net to enable the employees of Deutsche Lufthansa AGI and affiliated companies to obtain a greater share of the share capital. As part of a long running participation program and to involve them to a greater degree in the provision of capital, thereby aligning the interests of the company and its employees. Given that the issue price was based on the stock the price and that the capital increase amounted to only around 0.21% of the share capital at the time. The dilution effect resulting from the exclusion of shareholder subscription rights is negligible. In addition, in order to pay for the scrip dividend, the authorized Capital A created by the AGM in 2015, was used to increase the company's share capital in 2017 by a par value amount of 1,728,000,000 by issuing 1,456,465 new shares with a prorated value of with regard to the share capital. The issue price per share Likewise, amounted to €2.56. The shares were issued against contribution in kind by giving up and entitlements based on the subscription offer. For more details, on the use of the authorized capital A and B, please consult the note, to the consolidated financial statements. Thanks to all of those who We're following the AGM, on in the internet