Good morning, ladies and gentlemen, and welcome to Siemens Energy's 2023 first quarter conference call. As a reminder, this call is being recorded. Before we begin, I would like to draw your attention to the safe harbor statement on page two of the Siemens Energy presentation. The conference call may include forward-looking statements. These statements are based on the company's current expectations and certain assumptions and are therefore subject to certain risks and uncertainties. At this time, I would like to turn the call over to your host today, Mr. Michael Hagmann, Head of Investor Relations. Please go ahead, sir. Thank you, Eugenia. A warm welcome from my side to everybody. Because of the AGM, we are a little bit earlier than usual, so the documents were out at 6:30 A.M. on the website. Here with me is Christian Bruch, our CEO, and Maria Ferraro, our CFO. We will have a short presentation as always. It will take hopefully a little bit less than 30 minutes, and thereafter, we have about 30 minutes for Q&A. Because of the AGM, we have to finish on time, but of course, the IR team will be ready to answer your questions. With that, I hand over to Christian. Yeah, good morning, everybody, also from my side. Thank you very much for joining Maria and myself for an early Q1 2023 conference call. We had at Siemens Energy a very busy start into the fiscal year. We booked record orders of EUR 12.7 billion, reflecting a rise of nearly 50% year-over-year, and we delivered also 16% revenue growth. At the end of the quarter, our order backlog stood at nearly EUR 99 billion, which marks another record. On an underlying basis, our profitability improved material at Gas Services and Grid Technologies. Transformation of Industry managed the turnaround, as you can see from the more detailed numbers. However, because of the warranty-related charges at Siemens Gamesa, our Profit before special items for Siemens Energy was materially worse than a year ago, and that is, without any question, disappointing. Notwithstanding the charges at Siemens Gamesa, Jochen Eickholt and his team are making progress in improving the setup of the company and also really stabilizing the operations. Also in addition to Siemens Gamesa now, the cash tender offer has been completed as intended. The EGM decided on the delisting of the company, and Siemens Gamesa shares will cease trading on the Spanish stock exchange by the end of today. We published also our sustainability report in December, and I'm glad to say that we continue to make progress towards our ESG targets. Let me provide you with further insights to that in a couple of minutes. The operating environment continues to improve. The need for energy security is driving investments. You see it, as I said, in the 1st quarter for us, and particular in Grid Technologies and at Gas Services. In the U.S., the Inflation Reduction Act re-accelerates infrastructure investments. Obviously since last week, we are heavily discussing the EU Green Deal Industrial Plan for the Net-Zero Age, which was published on 1st of February 2023, which aims to simplify, accelerate, and align incentives in the EU and also really on the member state level. The operating environment in the wind industry is still challenging. Not only Siemens Gamesa is loss-making, but the same is true for our major competitors. However, we are seeing a shift in boundary conditions which results on the one hand in rising ASP and on the other hand, also in improved terms and conditions in the underlying contracts which we now conclude. Due to the charges at SGRE, we had to adjust our outlook for fiscal year 2023. We lowered our margin expectations and now expect a group profit margin for Siemens Energy of 1%-3%. This compares to 2%-4% before. I would like just to highlight, obviously, if you compare it, at the midpoint, sorry, at the midpoint, this is a cut by roughly 100 basis points. It's less than the mathematical impact of the change at Siemens Gamesa on our group margin, which means obviously the rest of the business is doing better than expected. This is obviously a good base for the future. I would also like to highlight that we now expect positive cash flow for the group for the full year. Our change of view reflects the fact that yet again, we expect very solid cash conversion at Gas Services and Grid Technologies particular. Let me move to Siemens Gamesa and what I as Chairman of Siemens Gamesa see happening on the ground. Jochen Eickholt and his team are making progress. The underlying performance at Siemens Gamesa was in line with our expectations. I'm particularly pleased to see that we see a positive development when it comes to the 5x. During the quarter, manufacturing volumes were up. The same is true for installations and project delivery times improved. Mistral, the optimization program within SGRE is in implementation, and the new organization is running as of 1st of January. The charge of SGRE is obviously disappointing. It originates in the installed fleet and reflects elevated failure rates due to failing components. As of today, EUR 472 million is the best estimate of the cost to replace these components. The process will take now several years. Keep in mind, this is a running fleet which then over the next years to come has to be maintained. During that time, Jochen and the team have the chance, together with the supplier, to mitigate these costs. That could be a potential positive contribution from that. Let me now share with you what will happen after the delisting. Immediately with the delisting, seven board members will leave the board of SGRE. This means the board will consist of three people, Jochen Eickholt as the CEO, Anton Steiger, from the legal side, and myself as the Chairman. Siemens Gamesa itself, as an entity, will have very limited external reporting requirements. We are talking about a dramatic simplification of the governance structures, and this means that Jochen and his team can really focus 100% on solving the operational problems and to achieve the all-important turnaround, and we will all, obviously, will support Jochen and his team in achieving this. In parallel, we are aligning the functions in order to realize the first synergies, for example, in procurement and logistics. We are deliberately not touching the operations itself in order not to jeopardize the progress Siemens Gamesa is making by implementing Mistral. Mistral remains the underlying key program to drive forward and to stabilize the company. Once we attain 100% ownership of Siemens Gamesa, we will have a more integrated organization and realize the full synergies. Keep in mind, we said, three years after full integration is what we target in terms of implementation of the synergies. Let me, like always, move to three highlights out of the quarter, underlining once again, obviously, our structure, in terms of driving electrification or driving, energy efficiency and Transformation of Industry. We have the competence to support really entire energy infrastructures. In that regard, we, I have to say, extended, the collaboration also with the Iraq government. We have been active in Iraq over the past years already in terms of repairs and refurbishment of existing infrastructure. The second phase now very much focuses on new build infrastructure, using flare gases or avoid flare gases, building renewables in total, between conventional and renewable production around adding 6 GW to the system, over the next five years, and also extending grid infrastructure. This is something which will also help the Iraq to prosper going forward. We had an world scale award from Amprion, which underlines also our role in the build-out of the renewable infrastructure. The award was to a consortium between us and the Spanish company, Dragados, for a contract to connect several wind farms in the North Sea, then to the shore and supply a total capacity of around 4 GW, so enough electricity to supply 4 million people. The project will involve four 2 GW converter stations and combines also service business with it. Just before Christmas, production started at the Haru Oni plant in Chile. This is a project we introduced before. This is a good example for combining different technologies, what we have to produce green molecules. In this regard, it's green synfuel, which can power mobility, obviously, produced from wind power. Obviously here, the intention is now to demonstrate the practicality and then extend in the second phase the overall production capacity of the plant. As you know, at Siemens Energy, we have put ESG at the center of our strategy, and we are developing Siemens Energy alongside our ESG framework. Our goal is to be a leader within the energy industry when it comes to sustainability, corporate governance, and social topics. In the report which we just issued, we documented our progress on our targets. You can see that we are on a good path to reach our goals. We really need to continue with our efforts. It will be a continued push also from my side. Let me start to flag up certain key points. First of all, with the emissions. Last year, we could reduce our greenhouse gas emissions by 21% compared to the previous year, which means 50% compared to the baseline year, 2019. With that, we have already exceeded our original target, which was 46% reduction by 2025. Scope three emission account for more than 99% of Siemens Energy's total greenhouse gas emissions and represent the most significant challenge to climate neutrality. Here we reduced our emissions by 12% versus the baseline and 300 basis points compared to 2021. At Siemens Energy, 90% of the electricity we consume stems from renewables, and as of the end of this year, we want to be at 100%. This is another KPI where we're ahead of our original target of 84%. At the end of fiscal year 2022, 22% of our leadership positions were held by women. I'm pleased that with the new organization, we already in this year, exceed our original target of 25% by 2025 in the leadership position. We're making good progress also on our diversity end. I'm also pleased it's not just gender, it's also really a very international representation in our leadership team. I firmly also believe in a safe working environment, and our initiatives to reduce accidents, such as our Zero Harm Day, which was just completed recently, are extremely important to get this safety-focused culture into the company. We did make progress on our total recordable injury rates. They went down from 2.47 to 2.17. Still some work to be done. The trend is absolutely positive and good. With this, I will hand over to Maria for the financial numbers. Thank you, Christian. Good morning, everyone. A very warm welcome also from my side. I'm very pleased to share with you our Q1 financial results for the group. For the very first time, our new reporting segmentation. Now with transparency on our Business Areas, Gas Services, Grid Technologies, and Transformation of Industry. Therefore, as promised, much more transparency this quarter. Let me start by giving you a quick overview on where we stand regarding the voluntary cash tender offer and the related financing structure before I go through Q1. As Christian mentioned, at the SGRE EGM on January 25th, shareholders approved the delisting, and we subsequently filed for the delisting of the shares from the stock exchange and with the Spanish National Securities Market Commission or the CNMV. As a result of this, the standing purchase orders for shares of SGRE commenced on December 23rd and is scheduled to end today, the 7th of February at market close. This means the shares will cease trading today. Given this occurs, the official and definitive delisting is expected to happen around the 10th of February. Just to recap, during the acceptance period from November 8th to December 13th, approximately 175 million shares worth EUR 3.2 billion were tendered. This equated to an ownership stake for us of 92.72%, of course, up from our 67.1%. Since then, as part of the standing purchase order, another 30.8 million shares were tendered until the end of January, worth roughly EUR 550 million. This increased our stake to 97.2%, and therefore the total cash consideration to approximately EUR 3.7 billion. We are still within the standing purchase order to tender timeframe, I don't know how many shares exactly will be or tendered today rather, to know the exact stake and therefore the exact funding requirement. As of yesterday night, our stake stood at 97.6%. Going back to the end of Q1, the transaction value of EUR 3.4 billion, of course, was financed as follows: We have the EUR 1.15 billion cash that was pledged and deposited with the CNMV at the end of Q3. We have the EUR 960 million proceeds from the mandatory convertible bond. This was also deposited with the CNMV in October of last year. Of course, the remainder has been financed approximately EUR 1.3 billion via the bridge facility that's in place. This is all fully reflected in our net debt position at the end of Q1. This is described, of course, also on slide 12. I'd like to reconfirm our clear intention to raise another max EUR 1.5 billion of the transaction value via equity or equity-like instruments to finance the bridge facility, of course, because Siemens Energy is and remains committed to a solid investment-grade rating. The financing of the transaction, how it's composed, including our intention to raise up to EUR 2.5 billion in total equity or equity-like instruments, is designed to maintain and support this key objective. To maintain maximum flexibility, we seek authorization for a 10% conditional capital, which will allow us to do a capital increase without preemption rights later at today's AGM. Just to reiterate, regarding the equity component of this transaction, Number one, we continue to have a very good solid cash flow performance, and we have a strong balance sheet. Number two, the transaction continues to be fully financed and secured. Number three, we have flexibility in sourcing the equity component for this transaction with various options which remain open and available to us. We are looking to do this as quickly as possible, of course, as always, subject to market conditions. Now let's get on to Q1, please, on page 10, starting with an overview of the SE group. As Christian mentioned, SE level of orders was outstanding and better than expected. I think this really truly reflects the favorable demand pattern and the confirmation of our customers that they believe that we have the right portfolio to support them in their energy transition journeys. Comparable growth was 49.2%, despite a high basis of comparison. This resulted in orders for the quarter of EUR 12.7 billion, the highest ever quarterly order intake of Siemens Energy. Order backlog of just shy of EUR 99 billion marks a record despite negative currency translation effects of close to EUR 4 billion. Of course, this is providing us with a solid foundation to deliver the growth and the margin improvements that we're striving for. I'll get into that a bit later. Revenue for the group came in at EUR 7.1 billion. This is 16% increase on a comparable basis, with all segments contributing to this growth. Nominal service growth was slightly higher, +19%, than the new unit growth at 18%, and also contributing to a positive mix on the top line. As Christian mentioned, 16% revenue growth is a great achievement, again, across all businesses, even though we did have a weak basis of comparison. book-to-bill, Siemens Energy strong at 1.8 for the quarter and 1.42 for the 12-month rolling period. Profit before special items amounted to negative EUR 282 million or -4%. In Q1 of last year, it was negative EUR 69 million. This is, of course, due to the losses at SGRE. The charges of EUR 472 million. I would like to highlight that we had a solid start. Gas Services and Grid Technologies reported sharp improvements year-over-year in their Profit before special items. Transformation of Industry delivered a turnaround. I'll get to that in a moment. Free cash flow pre-tax negative at EUR 58 million, more or less at prior year level, but this was better than we had expected. This is supported by advanced payments from our customers, reflecting the strong order development. Cash performance was particularly strong in Gas Services, which generated Free cash flow pre-tax of EUR 359 million, and Grid Technologies, which generated Free cash flow pre-tax of EUR 361 million. Given this strong dynamic and strong start, we now have a more favorable view on our network and capital movement in fiscal year 2023. We've adjusted our Free cash flow guidance upwards and expect Free cash flow for the group to be positive in fiscal year 2023. Now let's go to the next slide, please, and take a look at the much-promised order backlog transparency and where we stand at the end of Q1. We've reiterated in the past, the order backlog is so important for us because it's growing strongly, even with our ongoing selectivity in place, and we do really adhere to that. It provides us with visibility on revenue well beyond a 12-month tri-time frame, and of course, it reinforces and creates a strong business foundation. A strong book-to-bill feeds into our order book, the order book grew by another 13% over the last 12 months. This is increases across all businesses. During the quarter, we generated EUR 7.1 billion, another EUR 22 billion is already contracted or in-house for fiscal year 2023. In other words, 90%+ of our fiscal year 2023 revenue is already secured in our backlog. What you can see on this chart is the resilience and essentially stickiness, if you will, of our service backlog, which is based on long-term service business. This is true for all our business areas, but particularly for Gas Services. Today, EUR 54 billion, as you can see here on the slide, of the group's total order backlog is serviced. This has multiyear duration. This is high margin and resilient. I'm also happy to confirm, because it's not only about quantity, but I always say it's also about the quality, that the margin profile in our backlog continues to progress and support our margin targets accordingly. Next slide, please. I'd like to take you through the group cash bridge. Here, clearly it reflects the funding of the CTO of EUR 3.4 billion, as mentioned earlier at the end of our first quarter. Looking at our cash and cash equivalents, that stands at EUR 5.4 billion. This is EUR 510 million lower than at the end of fiscal year 2022, mainly driven by the cash transfer of the EUR 960 million proceeds of our mandatory convertible bond, as I mentioned earlier, to the CNMV in October. Before, of course, it was sitting in our account, and that was, of course, to be used as part of the December settlement. We have EUR 5.5 billion of financial debt. This is up from EUR 3.2 billion at the end of the fourth quarter, of which EUR 2.4 billion is long-term. The increase is driven by the fact that we drew on the bridge loan in the amount of EUR 1.6 billion to fund the CTO and the increased short-term debt at SGRE. During the quarter, SE's provision for pensions and similar obligations decreased slightly from EUR 570 million at the end of last fiscal year to EUR 545 million at the end of Q1. This was largely driven by FX improvements. Taking into account pensions, we have an adjusted net debt position of EUR 660 million. The fact that we are now in a net debt position is, of course, as a result of the funding of the cash tender offer. Looking at our liquidity position as at the end of Q1, we have total available liquidity, rather, of just shy of EUR 11 billion, and we have around EUR 5.4 billion in cash and cash equivalents, as mentioned, and EUR 5.1 billion of undrawn credit lines. Now let's take a look, please, at the Business Areas. Our new transparency, starting with Gas Services. Quick remark on the KPIs you see here. A very strong quarter for Gas Services across all KPIs. Well done. The overall gas market remains solid. In the first quarter, we booked EUR 3.8 billion. This exceeds the high level of prior year by 22.3% comparable. The substantial order growth, which is important, it was driven by large orders, but in various geographies. Special note from the U.S. and Brazil, and a continued strong development in our service business. Book-to-bill stood at 1.47, and the order backlog after Q1, EUR 41 billion. In the first quarter, we booked 14 gas turbines greater than 10 MW. There are seven large gas turbines and seven industrial gas turbines in the range of between 10 MW and 100 MW. Q1 is characterized by a strong gas market for GT, for GT greater than 10 MW. SE reached a market share of 25% accordingly. Revenue grew substantially by just shy of 22%, albeit versus a lower prior base. Came in at EUR 2.6 billion, mainly driven by a very strong service business this quarter, obviously then a positive mix. Profit before special items came in substantially better at EUR 318 million, reflecting a 12.4% margin. This is approximately 390 basis points greater than prior year. This is a combination and as a result of a combination of higher revenue and that higher service contribution, which gives you a positive mix this quarter and of course, strong execution. I think that needs to be noted. It's operational excellence here, as well as an improved cost structure. Moving on to our Grid Technologies business. Here, as mentioned by Christian and also by myself, driving this outstanding order development in our Grid Technologies business. The overall market environment for Grid Technologies remains very positive. Orders more than triple and rose to EUR 6.3 billion. This development was driven by the large grid connection orders, as mentioned by Christian earlier, and we're seeing strong demand in Europe for a while. This quarter, we're also seeing strong demand in other geographies such as the United States. Book-to-bill was 3.96, with backlog rising to EUR 18.7 billion. Revenue grew significantly, just shy of 19% year-over-year on a comparable basis, supported by the strong order backlog and order intake, of course, in prior fiscal year. Growth is mainly driven by expected increases in the product and solutions business. Profit before special items came in at a strong EUR 110 million or a margin of 6.9%. This also implies quite an improvement, almost 310 basis points versus last year. This increase mainly results from higher revenue and a strong focus on project execution. You may recall last year, during the prior year quarter, we had mentioned that particularly in this business, we had supply chain constraints and negative impacts related to higher material and logistic costs, which impacted the short cycle business of transmission. On the next slide, let's take a look at TI or Transformation of Industry. At the Capital Market Day, we clearly said that within or comprised within TI, you have the Independently Managed Businesses or IMBs. You have Sustainable Energy Systems and Electrification, Automation, and Digitalization. Those were areas to focus not only on profit but more on growth. Industrial steam, turbines and generators and compression, of course, will focus on turnaround and profitability. This is clearly reflected in our Q1 figures, as TI did deliver a turnaround with margin improvements across all businesses. Looking at orders, 17% decrease. This is because of a high basis of comparison, particularly in the compression business, where we booked a handful of large projects in Q1 of last year, not repeated. On the other hand, though, we see substantial order growth in EAD, and we booked EUR 64 million worth of orders at SCS. Underlying orders continued to progress positively. Revenue grew significantly by 13% year-over-year on a comparable basis with all four IMBs or independently managed businesses showing double-digit growth. We have strong growth in services, +24%, and in new units at 13%. This also, though, contributes this quarter to a positive mix in the top line and of course in profit. Looking at profit, it continued the positive trend that we saw in the prior fiscal year, which again confirming that all the hard work and all those measures that were put in place are starting to bear fruit. We're starting to see the beginning of the turnaround. Profit before special items came in at EUR 57 million. This reflects a margin of 5.7%. This compares to a loss of EUR 23 million in Q1 of prior year, thereby implying an improvement of 840 basis points versus last year. Again, this increase was not by accident. This was based on progress, real hard work across all businesses. Higher revenue, improved business mix, and a higher service share, and those underlying operational improvements, all contributed to this outcome. From a business perspective, rather, the biggest improvement came from our turnaround cases within compression and industrial steam. With that, maybe very quickly to sum up our achievements in our first quarter of this fiscal year 2023. First of all, I hope the increased transparency in our new reporting structure is helpful. I really enjoy it. I think it gives some views into our businesses, where are opportunities, where are some of our challenges. No doubt, we had strong orders and revenue growth, better than expected cash flow, strong underlying operational performance, improvements at all three BAs, GS, GT, and TI. That gives us the confidence that we are on the right trajectory towards our full-year assumptions for all BAs. Due to the aforementioned charges at SGRE, we did have to adjust our outlook for fiscal year 2023, as Christian mentioned. Let me just quickly highlight this on the next page. Just to focus on what has changed. We now expect Siemens Energy's group Profit before special items to be between 1% and 3%, previously 2%-4%. Accordingly, a net loss of Siemens Energy Group on prior year's reported level. We previously had foreseen a sharp reduction of the net loss this year. Due to better than expected cash flow development in the recent quarter, we now expect Free cash flow pre-tax for fiscal year 2023 to be positive. This was previously a negative range of low to mid triple-digit million. Of course, we reconfirm our revenue guidance and outlook for this year. With that, I hand over to Christian. Thank you very much. He'll explain our key priorities in the current financial year and some final remarks. Thank you. Yeah, thank you very much, Maria. Very briefly from my side, let me conclude with the key priorities which have not changed from what I said at the end of the fiscal year 2022. Because of the charge at Siemens Gamesa, we now expect lower margin, as Maria pointed out in her presentation. We will make sure that we remain on track to reach the underlying targets we have set, and we will obviously work hard on the revised positive cash flow target what we have given. We will leverage our new operating model, which went live beginning of this fiscal year. It is one of our five key levers to create value. From the beginning of the year, we strive really to leverage these key advantages, which means the organization is leaner, more agile, more transparent, as also Maria has pointed out. We'll continue to drive the underlying performance improvement over the quarters to come. In this regard, obviously, we will continue to use that. The turnaround at SGRE is key to our vision. That is not a question, and we are fully committed to this in terms of really achieving the turnaround. This will be also a lot of my personal attention this year. The fourth element, we will capitalize on the opportunities that come with the government initiatives. You have seen a glimpse of it already in the first quarter. We see now the European program coming there. In addition, we see other programs in other regions of the world. There is plenty full of opportunities in the energy transition which we want to capture. With this, I would hand over to Michael and look forward to your questions. Thank you very much. Thank you, Christian and Maria. We now enter the Q&A. We have just shy of 30 minutes. We need to absolutely stick to the timeline because of the AGM. If I could please ask you to stick to one question at a time, and then if we have time later, we will of course, you know, take your questions, if you have a second one. The first three questions will come from, or the first three speakers will be Vivek, Supriya, and Akash. With that, operator, please open the line for Vivek. Thank you. Hi. Good morning, everyone. Thanks for taking my question. Question for Maria, please. After the strong order intake in Q1, your contract liabilities are now greater than the sum of contract assets and inventories. What are your updated thoughts over the next few years for how you expect those items to develop going forward? Would it be fair to assume, given the long-dated nature of the grid contracts, that any normalization in prepayments might take quite a long time? Thank you. Thank you, Vivek, for the question. Of course, the fact that our strong top line continues to develop, we're very happy about that. Hence, that continues to support our strong belief that free cash flow will continue. You're absolutely right. The dynamics on our balance sheet is, as you've mentioned, in this case, for this quarter, is the first time our contract liabilities exceed our contract assets and our inventories. That is expected because, of course, we need to now deliver on this very large order backlog that we have. Do we expect that dynamic to change in the short term? No. We expect that to continue into the midterm, let's say. In long term, this is underpinning our business plans and also underpins our target midterm targets that we've already described. At this point in time, I think one other thing that I'd like to mention regarding the balance sheet is, if you recall last year, we talked a lot about our operating networking capital and our asset management initiatives. Of course, as we execute, we start to see some of the impacts that we have in that, in those areas on our balance sheet. Two things. One is we have an increase in inventories. This was in part due to things like safety stock as well, in the past fiscal year. This is something that we're looking at and going to determine what the right flight level is coming forward into the next quarters. Regarding accounts receivable, we do have some seasonality, if you'd like, in Q1, but this is something as well that we will maintain and keep a very keen eye on in the next quarters to come. Thank you. Thank you, Maria. Thank you, Vivek, for the question. The next question comes from Supriya Subramanian at UBS. Supriya, if you go ahead, please. Thank you, Supriya, for the questions. In terms of the synergies without the 100% ownership, yes, we can do a couple of things, and we are in preparation of doing so. The delisting is a key milestone for doing this. One of the first synergies is actually reducing the board members significantly. We go from 10 to three, make the governance much more straightforward and simpler. This is what we immediately can do. We also align corporate functions already, and we can do it. We have to use a little bit of different mechanism because legally, the entity of Siemens Gamesa are gonna be an independent legal entity, but there's a lot where we can obviously harmonize approaches and really make use of these type of elements, let it be in the area of IT or let it be in the area of cybersecurity or HR. This is what we're gonna do. This will not deliver the 100% of the synergies, but it can deliver a fair amount. We are working through this, but this is definitely our intention to immediately implement more or less with the course of today, already certain measures in terms of simplifying things. That said, with regard to the Squeeze-out question, for the Squeeze-out level, the level in December was relevant and we have not achieved a formal Squeeze-out level. We now have to do obviously a stock taking on the remaining shareholders. Obviously between December and as of today, we continued to buy shares. Our share in Siemens Gamesa today is higher what we communicated in December. We'll now have to see on what are the next steps to a potential 100% ownership, and this will be clarified over the next weeks to come. In terms of the midterm level outlook, let me put it a little bit into perspective. First of all, the charges which we have seen in quarter one are, let's say, by and large with the majority resulting from the service business. This is the installed fleet with the increased failure rates. Where I do see really stabilization and good progress is really on all the operations in terms of factories on how they operated and quality, cost and so forth. I do see stabilization there by Jochen and his team. In this regard, I'm confident with the midterm outlook into the business. That said, we have included in quarter one all elements and charges that we see as of today with the information as of today. Mm-hmm. What you never know, is there anything coming around the corner going forward? We have seen surprises in the past, this is why I would be careful to say, could there be anything in addition in future, yes or no. It's something we have to see, but what I'm seeing is two things. I see a better, much better handle on the operations, and the other thing is much better terms and conditions in the contracts we take on board. This gives me obviously the confidence that we are on a good track. At the same time, we have, and Jochen has underlined this in his call, we have not yet given an outlook on 2024. We're saying we're investigating this. Keep in mind that some of the charges we have taken also would imply that we have to consider what is our suppliers. Mm-hmm ...contributing potentially, and can there be a positive contribution? This is all what we have to work through, over the next weeks and months to come. In this regard, there is no dedicated guidance for 2024 on that business, but there's a midterm positivity I would call it, in terms of the outlook on this. We will obviously keep you updated throughout the year on how our views on the business continues. Sure. Great. thank you very much. Thank you, Christian and Supriya. The next question goes to Akash Gupta at JP Morgan. Akash, please go ahead. Thank you, Michael. Good morning, everybody. My question is on Transformation of Industry and here margin improvement that you have reported in both industry turbine business and compression sub-segment. Can you please elaborate on both of the sub-segments? What are the underlying driver for the significant margin improvement? Can we also talk about sustainability of this margin rebound in the coming quarters? Thank you. Thank you, Akash, for this question. First of all, the two big contributors, as Maria pointed out, are compression and steam. That is really largely driven by what we call this Accelerating Impact program and all the measures which have been done in the past years to optimize the footprint, to get the cost structures in place. I have to say the team has done a fantastic job. They are ahead of their plan, but it obviously shows operational improvements which are there to last. That is my expectation. If I look on the backlog and the book-to-bill above one, this all gives me the comfort that the business is absolutely on the right track. These are the big contributors in the margin improvement. Keep in mind that what we call sustainable energy systems is still a business where we invest money into. As a business, it is losing money. It is obviously an investment into the future if it is around hydrogen. This obviously does, you have to see in the overall balance. The EAD business is, let's say little bit smaller, also doing good, but also I think with some potential in terms of improvement. The big two contributors, compression and steam, and I'm pleased with what I'm seeing there. Thank you. Thank you, Christian. Thank you, Akash. The next three people in the queue are Gael de-Bray, Andre Kukhnin, and Will Mackie. Gael, if you would please go ahead with your question. Thank you, Michael. Good morning, everyone. Congratulations really on the outstanding commercial performance this quarter. On this, could you talk a bit more about the remaining pipeline for the former gas and power segment for the rest of the year? Do you still expect to bag large ticket items in the next few quarters, or would you rather anticipate some kind of normalization in the order pattern towards maybe the previous quarterly run rate we've been used to between EUR 5 billion and EUR 6 billion? Yeah. Thank you very much, Gael. Good morning from my side. First of all, when we discussed at end of last year in terms of our expectation in 2023, keep in mind, Gas Services was a super order intake in 2022, and we said 2023 is gonna be lower. I still believe it will be lower than 2022. We will probably be above what we have set ourselves as targets because the order pipeline looks still good. If you look across the industry, quarter one was a particular strong quarter, which is actually unusual in the Gas Services, but it shows the market demand. There is potential also for further good order intake in the next quarters to come. However, we as Maria said, we're gonna be selective in what we take on. We obviously have to balance also delivery times, load in our factories. We are excellent loaded and, obviously we will be selective and not chase each and every order to make sure there's a good margin profile in the backlog. In one line, better than budgeted, but I would still expect it below 2023 in terms of order intake. Sorry, 2022 within an order intake. Understood. Thank you very much. Do I have time for a second question? Go ahead. Thanks a lot. I mean, Q1 was also exceptionally strong in terms of both growth and margins for your three divisions, excluding Gamesa. They are now clearly above the targeted ranges for the full year. First, did it come as a big surprise to you two, and why? Second, if we assume that you reach the upper end of your objectives for gas and power in 2023, it would still imply a clear deceleration growth and lower margins in the next nine months compared to Q1. Can you help us understand a bit better why that should be the case? Thanks very much. I would start. Maria, if you would like to add, please jump in. First of all, I mean, quarter one was particular strong, right? In some areas, in the margin as well as in the order intake, I would not multiply it by four and get to the year and in all areas. That's very clear, but it's a deliberate choice. I think the market itself underlying, particularly in certain areas like with technology, is extremely strong. Keep in mind also the way on how revenue is generated at that business is different than in other parts because some of them are very long-running projects. I expect it to even out. We obviously gave our guidance in terms of revenue still as expected. Also in this regard, I do expect that we are in an order, a book-to-bill, on what, on the level of one or above in the different areas. That is what is driving me, at the moment. Maria, anything to add from your side in terms of margin? No, thank you. I fully agree. Q1, as I mentioned earlier, had a positive service mix across the board, which allowed for, let's say, a stronger or very good and solid start, which we will take, by the way, for this fiscal year. You know, we do have volatility, and Q2 tends to be a little slower. Of course, we have a bit of a ramp-up as we get to the fiscal year, Gael, just to provide a little bit of color. I completely concur with what Christian said. You know, don't take Q1 and multiply by four. For sure not. Do we see some positive momentum? Yes. Hence why we said and we're able to confirm now in Q1 that our Business Areas will remain within their guidance ranges of profit. Thanks very much. Thank you, Gael. Thanks, Christian and Maria. Next question comes from Andre Kukhnin at Credit Suisse. Andre, if you please go ahead. Good morning. Thank you very much for taking my question. I just wanted to run through the multiple streams of kind of cost savings and self-help programs that are being undertaken, just to understand what we've got in store for 2023 and also for 2024. I understand there is the remainder of the kind of old gas and power program that I think is supposed to deliver EUR 300 million for this year. If you could talk about that and whether there's anything left for 2024. Cadence of synergies from SGRE integration, should we expect anything for this year, and is it going to be more kind of 2024, 2025 weighted? I think there was also a program for hierarchy reduction, a reduction of managerial positions, I think about 1,500 headcount, which I think we estimate around EUR 300 million. Is that yielding any savings this year? How should we think about it for 2024 as well? If we could just have that, kind of summed up, that would be great. If I may, just a quick follow-up on the up to EUR 1.5 billion equity raise as it is kind of raising some questions for given the punt in the punt in the market. Can I just check on the size of that up to 1.5, the final size of it, will that be determined purely by the function of how much SGRE you own at that period? Or would you take into account other factors such as your own cash generation, which has obviously been better than expected given the guidance change, and therefore can we think about up to EUR 1.5 billion as maybe conceivably one rather than 1.5 or in that kind of ballpark? Thank you. Thanks, Andre. I'll take those both questions. First of all, thank you for the question on where we stand with our cost out programs. If you recall, last year, we actually had a very strong, let's say, momentum in our cost out programs. Again, you see this now coming to fruition with the underlying operational improvements. Also, as you can see in Q1, and this is what we expect, as Christian said, to be sustainable. This year we foresee the additional, if you'd like, last piece on the AIP program of approximately EUR 300 million in 2023 to come. This is something that at this point in time, we also confirm. Of course, there's more to come in 2024 and 2025 as we continue to. This is an ongoing process for us. It's nothing that we say, "Okay, we have our EUR 800 million and we're done." That's not at all the case. Of course, there will be continuing that real cost focus and cost consciousness as we get into 2024 and 2025. Regarding the equity raise, as mentioned, as of last night, we now stand at 97.6%. Only 2.4% of the shares outstanding. As a result, your assumption of, you know, is this equated to how much we will at the end of the day, have in terms of ownership of the shares percentage? Yes. I think it's really important to remember that we had said that this is a EUR 4 billion transaction in its entirety. Of course, the funding secured for that, of which EUR 2.5 billion in total would be equity and equity-like. Hence we did the mandatory convertible bond already for the EUR 960 million, so therefore we still have EUR 1.5 billion of equity to come. That's why I reiterated, Andre, it's very important, so thank you for asking that question. We are committed to that because of course, this then underpins our balance sheet, which is then commensurate with a company that has an investment-grade rating. That's our underlying objective. Thank you. Great. Thank you. On synergies, timing, if possible? I think it's a little bit too early to say because we are just about in terms of balancing synergies and dis-synergies obviously. We will keep you updated. As I said, some of it I expect to be relatively straightforward as a reduction in the board members, in terms of also putting a feeling for a corridor to that, I would ask for some time. Definitely, as I said, we can do certain things relatively fast, and which then could have a potentially an impact in 2024, particularly if it comes to elements like procurement. We will keep you updated on that. Great. Thank you. Appreciate it. Thank you. Next question comes from Will Mackie. As we are running up against the timeline, if you could stick please to one question, Will. Thank you. Yes. Good morning. Thanks for the time, Michael, and good morning to you both Maria. My question relates to the European Green Deal Industrial Plan, only really put forward yesterday, but with some prior fact sheets. Could you share with us your initial interpretation of how the plan can reach across your businesses to provide either support or proactive financial benefits to either growth drivers or cost benefits across the business in Europe for you? Thank you. Yeah, thanks, Will, for this question. We still have to a little bit see on how much this details out. It addresses a couple of things where I do believe we can benefit from one. It underlines the necessity to manufacture also in Europe and to support the manufacturing industry placed in Europe, which is obviously us. In particular, obviously, we have been hammering in the past months on the struggles in the wind business and that different bonding conditions are required. I do believe this act can contribute to that. We will have to see it. The other thing is really also all the innovations which we drive. There are a lot of activities are in Europe. It's relatively broad, the act. I mean, it cuts across heat pumps, electrification, general things, storage, and a lot of the activities we are doing. I would expect also support on that end in terms of building up and developing and financing new type of technologies, and that could be another element. First and foremost, I think what I would hope through the act is a better long-term predictability of the growth in this market and obviously shorter approval time. It's not just money, it's really in terms of getting projects on the ground, and I hope that this drives these initiatives. There's one element which I'm a little bit missing still in the act, and we will continue to advocate for this, which is the electrical grid, which I think is still underestimated how much has to be done, which is a super opportunity also on our side. And in that regard, I do believe it will help us this act, but we also, I have to say the proof of the pudding is at the end, how it is implemented, and in what timeline it can be executed. This is where in the past, the European regulations were not always the most simple and easy ones, which is hopefully different this time. Thank you. Right. The next question comes from Sean McLoughlin at HSBC. Sean, please go ahead. Thank you, Michael. Good morning. Could you just, thinking about the very useful breakdown of your orders, can you talk maybe about the potential for short cycle? You know, what is the scope maybe in fiscal 2023 for shorter cycle in for out orders? Are you effectively closed for order intake for fiscal 2023? Just to understand maybe historically, I mean, how much of your business is short cycle? Thank you. Yeah, thank you very much for the question. I mean, it's particular obviously, where do we see short cycle business? One thing is obviously on GT, the what we call product business, which is very, very strong at the moment. In addition to the HVDC business, the other part is the transactional type of service business, which also has been a very good quarter. We also, with the funds which are available in the industry, we remain, obviously they are positive also on the short cycle business. Anything to that, Maria? Yeah. Maybe Sean, just to add to that, It goes back to what I mentioned about our order backlog and what's already secured in terms of revenue for the year. I said it's, you know, just over 90% of our revenue is already in hand for this fiscal year. Not closed per se, of course not. It looks like, you know, obviously we have very good visibility with our order backlog on that short cycle. I think it is important to reiterate that the business of service has a long-term service element to it. As Christian just mentioned, also has a short-term, what we call transactional book and bill business. That's exactly what we do see also continuing to be quite strong quarter-over-quarter. Thank you for the question. Thank you. If I may very cheaply just ask a follow on around the service. I mean, how many years forward are you booking service? We're just thinking of the visibility post 2025. Yeah. Our, like, the average duration in our service backlog is around 12 - 13 years. Hence why you see such a large portion of our backlog in the greater than 25 years onward allocated to service. Thank you. Thank you. There's one follow on, and if you could keep it really, really brief, please, Supriya. Last question. Over to you. Sure. Thank you. Thank you so much for taking my follow-up. I just wanted to get your thoughts on Grid Technologies, in terms of the, you know, we can of course clearly see the profitability improvement. Is that an indication that sort of operations are back to normal in terms of the supply chain challenges, and raw material inflation impact that we've seen last year? Thank you. Yeah, thank you very much. I mean, last year it was mainly impacted by closed down of factories, feeder factories, which we had in particular in China. This is back to normal. This is stabilized. In this regard, this is something where now the margin is where we expected it in terms of the trajectory. Last year was the outlier, but this is on track. So far we are positive on the margin trend and on the GT side. Perfect. Thank you very much. Thank you. Thanks everybody for the questions. We will not today be available for many questions afterwards, but you can of course try to reach us via email. We'll try to answer the questions. Otherwise, we are available tomorrow to answer questions. Maybe one or two closing remarks from Christian. Thanks. No. First of all, thank you very much for joining our call. As we laid out, right, it has been a quarter of highlights and lowlights. However, what I really enjoyed to see is this good alignment with the energy transition. You mentioned the programs which are coming now to fruition, which is all going in the right direction. In this regard, or let's say, stay close to us. We will keep you updated, and help us to build the energy transition successfully. Stay healthy. See you soon. Thank you very much for your time. Thank you. That will conclude today's conference call. Thank you for your participation, ladies and gentlemen. A recording of this conference call will be available on the investor relations section of the Siemens Energy website. The website address is www.siemens-energy.com/investor.