So you'll vowing to improve your profitability after your losses narrow. Help us understand what that means a little bit more. Do
you expect to be profitable. Yeah good morning. Thanks for having me. First of all I think as
you said we've made great progress in 21. You know our company cuts across all the energy value chain from conventional to
renewables from generation of electricity to transmission really to usage. And we told our investors right from the get go that
we said it's a multi-year story now really to build up improve. There's a lot of things we can do ourselves. We launched a lot
of restructuring and cost effectiveness programs and we made really good progress in 21. We had a substantial increase in
their earnings. We still on a net loss but obviously we see us absolutely on the right track on
improving. We had some challenges as you know in 21. Also on the renewables side and the onshore business with the wind obviously
where there's two things. The one thing is there were some problems which you need to tackle ourselves on how we do certain
things on projects. And there was a general element I think in the industry. If you talk about the wind market in particular
what are the right prices for the equipment. What are the right prices for
wind power. And we see it with all our peers that the industry is in a discussion there on what is the right profitability base
and the right price base in the business that. I'm very confident going forward. We are on the absolutely right track.
We have the right portfolio to take our energy transformation. And in this regard I'm confident for the future way of Siemens
Energy. Good morning Chris. As you say there's some good signs there's
some good results overall in terms of that restructuring your gas and power divisions is going well. But you mentioned the
fact you've still got ongoing troubles in your renewable room and unit Siemens games. Do you think you need to take more
control of that unit. And will your parent company Siemens give you the cash to take more control and buyouts with your
shareholders and kind of if not some more aggressive restructuring their.
First of all I always would like to do the resolving the problems the operational issues that seem as
Gamesa is irrespective of the share what Siemens Energy holds and seem as calm. This has to be done really independent of this
and this is what we're doing. You know we own two thirds of Siemens Gamesa. We are widely presented on the board. We can
influence the company. We take all the things. And I believe the measures are on its way in terms of future structure is
something I can at this point in time not really comment on. But it's also not my priority. My priority is fix the
operational problem that's in Siemens to me. So that's something we can do and we are addressing and what the management and
Siemens can Mesa is also addressing. One thing sets of this as I said certain things are really issues they have to address. The
other discussion is really about the overall industry because we have seen it with all peers in the wind areas. Everybody was
struggling. And this also means that's a continuous logic of renewables get cheaper and cheaper while the material cost
increases. It's not working out. We have to discuss about that element to really drive this industry forward. Okay.
So what's wrong with the pricing of the products in renewable energy and easy that contracts aren't flexible enough to reflect
higher energy higher higher material prices when they occur. Are you just underpriced. You just underpriced generally. I can. Can
you sum up what the issue is. Well I think we have seen that there was an aggressive price
reduction over the past year in onshore and offshore. And this is good because it shows that renewables is growing. It shows
also the scale up of the industry. But we have at the same time seen that if you look on steel prices more than doubling them
the prices we have seen logistics prices coming up four times to two prior Covid times. So we've seen that the underlying
material prices have increased. Why the power prices on the wind side came down. This is not going to work. So either it has to
be reflected in more indexes and more flexible contracts towards customers. But at the end it also has to say or show up in the
power prices to the end consumers. And this is something which needs to be understood by the
industry the OEM suppliers like ourselves but also the ones who are investing into the wind parks for example on how this can
work out because at the end you need to earn money. Only then it will be a successful
industry. And I think this is possible. We have to be aware Christine that renewables the consumption of material. Yes
obviously. Sorry to interrupt. I was just going to say that with COP 26
gone in the background I wanted to kind of get to this quickly with COP 26 down in the background. Climate is obviously front
of a kind of everyone's minds. The moment you make coal and gas turbines thereby enabling the running of these coal plants and
continuation of the extreme approach might be suggest at some point that you should just stop servicing these coal plants so
they can no longer operate. Would you consider doing that at some point in the future.
I mean first of all I think we need a diversity of the portfolio is what I always said and then I have myself in Glasgow I have
had a lot of discussions. And for me it's important really to do both. 50 percent of our revenues today is on the sustainable
side on the renewable and the transmission side. The other part is largely gas which I believe is an indispensable bridge into
the future to tackle CO2 emissions. Now today I get tired of discussing about 2050 targets and not addressing 2022 and twenty
three. We will need this bridge on gas. We abandoned coal ourselves last year already because we have to get out of coal
as fast as possible. And we also have to define whatever brings CO2 down today. We should do. Even if it is an interim solution
like natural gas and this is why we have this portfolio to drive a sustainable energy transformation.