Operator: Good day and welcome to the Deutsche Post DHL Q3 Results 2011 Conference Call. Today’s conference is being recorded.
At this time, I would like to turn the call over to your host today, Mr. Martin Ziegenbalg. Please go ahead, sir.
Martin Ziegenbalg - IR: Thank you and a warm welcome and a good afternoon everyone out there to our Q3 results call. As announced, we have with us today our CEO, Frank Appel and our CFO, Larry Rosen. We have scheduled this call as you know for one hour and we will have the usual procedure with Frank and Larry going through the presentation material that I assume you have in front of you or can follow on the Web. After that, we will have time for Q&A, and let me take this opportunity just as a brief reminder as to safe the date if you like, we have scheduled Capital Markets Day for next year, May 24th; details to follow but just so you are aware; and without further adieu, I’d like to handover to Frank please.
Dr Frank Appel - CEO: Thank you, Martin. Thank you very much for joining us. Good afternoon. I am of course very pleased to share with you very good numbers for the third quarter and for the development year-to-date. So, let me jump straight away into the presentation. I will only highlight some aspects to save as much time as possible for your questions.
So on Page 2 you see the highlights of Q3. Q3 had another strong performance in the third quarter of this year as well in all divisions, top line and bottom line momentum continuing. We see clear signs that we are capable as promised to stabilize our MAIL EBIT and we are very excited about the margin improvements in the DHL divisions as well, and that has lead to a conclusion that we can raise our guidance from the upper end of 2.2 to 2.4 to above 2.4 on EBIT level.
If I then go to some of the interesting subjects in MAIL on Page 4, you see the summary of major decisions or agreements which have been reached in the last month. The first is our long-term union agreement. We already explained when we signed it. I’ll come to that in a second again, so we are very pleased that we have now a good foresight on that.
The new price cap formula was not what we hoped for but it’s a good step in the right direction. It gives us more headroom and headway for improvement or raising prices. I will come to that as well. The third is the new Parcel Concept to cope with the increasing volumes. We will invest quite a bit. What is still open is wage negotiations which will definitely start later this year and will be finished in the first quarter next year and we hope that we will have a reasonable outcome and a good balance between employee interest and our interest as well.
If I then turn to Page 5, that just a reminder on these long-term union agreement which have mainly four elements; first, a very good model for how our employees can reach their retirement stage by reducing their workload, get some compensation which is (fueled) from some contributions from the employee and some contribution from the Company.
We had extended and give that for job security which will help definitely the engagement of all people of no compulsory redundancy until 2015. We think we can afford that based on the good development we have seen over the last 24 months. We have increased a little bit our outsourcing activities in the transportation or can increase that in the transportation area and we had reduction in the salary entry level by 4% which will help us for newcomers to reduce the cost we have currently, so some other aspects as mentioned here have contributed that as well.