Jurgen Otto
CEO, Labor Director & Chairman of Management Board

Good morning, ladies and gentlemen, and welcome to Heidelberg's conference call regarding the announcement of our strategic partnership with Manroland Sheetfed. We are delighted to welcome our investors and analysts. Heidelberg is 175 years old and in the market together with Manroland also more than 150 years. So this is not an everyday transaction and opportunity. It's a transaction which supports the organization and optimization of Heidelberg's cost base and reflects our commitment to maintaining a strong and reliable global service network in the print and packaging industries for our customers.

It's an awesome moment to bring Manroland Sheetfed on board as a second strong brand. And for more detail, let me now hand over to my colleague, David.

David Schmedding
Chief Technology & Sales Officer and Member of Management Board

Yes. Thank you, Jurgen. Yes. Good morning, everyone, and also welcome from my side. Let's start with the rationale behind this strategic move. Stronger together is our -- driving our vision to strengthen Heidelberg's global service capabilities in the print and packaging industry. Heidelberg supports stabilization on the supplier side. With this transaction, we achieved several key objectives ranging from expanding customer reach to strengthen the service and spare parts business into unlock growth potential.

Furthermore, the partnership with Manroland aligns with the consistent sustainable expansion of our service and life cycle business. Increasing the contribution of recurring revenue is important for several reasons. First, recurring revenue provides visibility. Second, recurring revenue