 So, good evening, ladies and gentlemen, it's really a pleasure and a privilege for me to be with you today and to address this industrial future dinner. First, my deep thanks to John Gretland for his contribution to the debate on industrial stretching. And we all can welcome Dr. Cable's speech last week, which declared the government's increased focus on partnerships with specific industry sectors and highlighted also the automotive industry as a driver for growth. His emphasis on long-term development and the prioritization of key sectors such as advanced manufacturing and the supply chain is vital. But before starting the discussion about strategy, I just want to clarify terms and definitions. We talk about industrial stretching, but that means that there has to be first a clear goal, a clear vision. Remember that according to definition, strategy is a plan of actions designed to achieve a specific goal. As there's always an element of uncertainty about the future, strategy is more about a set of options, strategic choices than a fixed plan. And Mintzberg, it's a pattern in a stream of decisions, but always based on a clear and mutual aligned initial vision. Now as a businessman, I cannot recommend a vision or objectives to the UK government. What I can offer is an industrial point of view of the key questions a company has to answer when formulating its vision and deriving a corporate strategy. A corporation or in this case, a corporation in the UK has to answer some questions when defining its starting vision. Some came into my mind in preparing this evening, just an outside infu. Does the UK want to re-establish real industry as a main pillar or instead rely on the service and finance sectors and affect the balance of its economic foundations? Does the UK really do export more or focus on the home market and so reduce growth and employment potentials but favor a strong currency? Does the UK want to innovate and to do its own research and development or just become a follower of technology? And so lose its brightest talents and technologies and the capabilities that are going with it. Does the UK want to design and create new products or just manufacture products in transplants? And so lose creativity again and design capability and find itself competing with manufacturing giants like China and India with the reduced wage levels that would entail. And does the UK want to change and improve slowly and gradually or accelerate the process to give itself a chance to compete at a global level? So what is the UK vision? It's not my call but it's a prerequisite from my point of view for a coherent strategy. For me personally the answers are clear and I feel the obligation to hand over a better place to future generations in our company. And therefore at JLR we have defined the JLR, the Jaguar Land Rover Way. We will restructure and go for growth simultaneously in order to achieve really leading edge results. Our objectives are formulated clearly. And I'm aware that there's not a silver bullet solution. Every business school, every consultancy has its own recipe for the future. And every company has an individual approach and some struggle, some are successful and only a few really achieve breakthrough results. Now in order to help you to understand my statements better, I want to provide a brief snapshot about JLR. Jaguar Land Rover is a British company and we are committed to the UK. JLR is one company with two very, very iconic brands and three passions. Designing great products, outstanding customer experience and environmental innovation. Our head office and design, research and development and engineering center are in the UK. JLR has a sales network in 177 countries around the world with around about two and a half thousand franchise dealerships. In 2011 we sold around about 300,000 cars and we exported more than 80 percent. A proportion which is rising. Year to date we have increased sales by 40 percent. In 2011 we achieved a turnover of 13.5 billion pounds and made 1.5 billion pounds profit. And I can ensure you the first quarter of this financial year remained solid. We employ around 25,000 people and over the course of the last two years we have hired around 8,000 new employees. By the way that I guess we calculated at the GVA around about 1.5 billion just for the UK. And that was by the way the largest recruitment campaign in the history of Jaguar Land Rover. And just last Monday we welcomed another 312 young, talented graduates. A sensational youth is coming. In Gaten and engineering centers we employ world class engineers and we design and engineer really world class products with a very, very good substance. Just to give you a flavor, in 2011 we spent 1.5 billion pounds for the product creation. This year we are going to spend around about 2.1-2.2 billion pounds for the product creation. So around about 600-700 million more just for research and development. And what success is about quality as well as growing investment themselves. Our Jaguar brands finished second and most improved in 2012 JD Power initial quality surveys shortly after earning the title best manufacturer in the vehicle ownership and satisfaction story. And both brands are also Jaguar and Land Rover also featured in the top six of the appeal survey for automotive performance, execution and layout. Now according to the formula of Oxford economics we are responsible for the livelihood of around about 190,000 people in the UK including the supply chain and sales operation. This means that we have a meaningful socio-economic impact to the UK. And in terms of corporate responsibility our CO2 offsetting programs by the way including also operations save total emissions equivalent to the first 40,000 miles driven by Land Rover customers in their new vehicles. So we really take care. We are also engaged in business in the community where we achieve platinum standard and we support humanitarian and conservation charities such as Red Cross or Red Crush Center. Overall we want to achieve sustainable profitable growth. Growth despite the crisis we say yes it's possible. We want to establish Jaguar Land Rover as a relevant premium global company. The fourth premium company in the world. And in order to achieve these ambitious goals we have to recalibrate. We have to recalibrate the positioning and the mindset about manufacturing and engineering and the competitiveness of the business environment. And we need a new flexibility and agility in the company in order to manage growth and risks. Therefore we also have to establish a global footprint in sales and operations in order to cope with a new normality. Low growth rates and extremely high volatility. Now that is the point you could ask why do we need an industrial strategy at all? Can't we let the markets decide? The answer is from my point of view simple. We need an industrial strategy, a sector driven strategy maybe. We want to decide in which direction we want to go. We don't want to be forced by the competition. And that means we have to be competitive. And the industry needs the right environment, the right people, the right supply chain, the right value chain, the right financial opportunities and the right corporations. Export is inevitable. Export is one important element in balancing volatility. Given that it's crystal clear, we have to be competitive at the highest level. That means we all have to be competitive. Only together we will be successful. Team UK is challenged by international competition. And one important element is a competitive currency balance. As our competitors in continental Europe are finding to their benefit. And sterling is relatively strong again. JLR, as an example, illustrates the different dimensions of working across global markets. In the UK, Jaguar Land Rover, we are a mid-sized company. Internationally, we are very, very small. Our competitors are not British. Our competitors are the large car companies, the large manufacturers producing millions of cars each year. We are sitting in Stuttgart, in Munich, in Ingolstadt, or further afield in Japan, in Korea and all the US. And we see fast proliferation in the emerging markets, in the emerging economies such as China and India. So I highlighted the industry needs a globally competitive business environment. In this context, the government's plan to cut cooperation tax is exactly the right direction and is exactly the very first step. Some further very good examples, for instance, can be copied or can be seen in Germany. Regionalism pays off. There are centers of excellence like Fraunhofer or the universities, or the name ones in specifics, University of Aachen, for instance, for automotive industry, they create, they innovate, and at the end of the day, as a result, they create the right momentum. Now Dr. Kable's refreshing speech last week moves towards a better situation in terms of supporting emerging technologies, boosting skills and developing supply chains. So thanks a lot for the support. But we still have also some negative elements. Infrastructure is creaking in places and energy prices remain very, very high. And just experience in driving down from Coventry to London, it's often harder to sustain a stable mobile phone connection in the UK than in between developing countries all around the world. Ladies and gentlemen, businesses, people, and if we want to focus more on the creative and intellectual side of the product creation process, we need more and better skilled people. We need the best. We need the elite. And we need different processes. The challenges to educate and to train more, we all know that the UK produces far fewer engineers as a proportion of university graduates than key competitor countries. To give you a sense of comparison, only 8.6% of the UK graduates took engineering degrees in 2011. Compared to 12.6% in France, 13% in Germany, and even more impressive, 26% in Korea, and 37% in China. And how many stay in engineering? Or just go to the city instead? Then UK really needs to supply enough engineering skills for the industry and the city. As a company, we do everything to assist this process, goes without saying. For example, we hosted more than 20,000 young people and more than 2,000 teachers at our education business partnership centers last year. And we support our employees' educational development. In 2011, our staff booked more than 40,000 days of training. And we are putting 3,000 engineers on master level programs in future engineering skills. This way, we are training seasoned engineers prolonging their career prospects. And Dr. Cable announced the advanced skilled accreditation scheme during the summer. We believe it can drive productivity, growth and job creation within the UK supply chain companies. And that gives me the hint to the supply chain. We at JLR live in a symbiotic partnership with our suppliers. In some ways, we are only as good as our suppliers are. We depend on the supply chain. And all suppliers can only be attracted by profitable business cases. We have to generate the famous critical mass. And we really appreciate the work, for instance, of the automotive council in helping to achieve that. Devon suppliers are key for high technology. So it's encouraging to see that Bosch, for example, is increasing its presence in the UK again and be located close to our engineering center at WMG at the University of Warwick. And we have to make sure that small and medium-sized companies get the capital to invest and to grow. Suppliers have to cope with the growth, Jaguar Land Rover and other large companies create. And in that context, large companies can help small companies. Strengthening the strong is a basic message here, with business going the way of those who are best equipped to survive and to grow. And this context, Dr. Cable's confirmation on setting up a government-backed institution is great news, because it can open up finance to supply chain companies. Research and development, individually, as mentioned, we need the best people, the elite, to be internationally successful. The Green Elizabeth Prize for Engineering is one platform we adopt showcase excellence. And by the way, I'm proud to say we did win the prize. R&D is an area in which Britain has really a rich heritage. And it is imperative that we continue to nurture engineering skills. We also have to define new ways and processes. The survival of the fittest was defined by selection and mutation. But very often, cooperation creates innovation. Suppliers, academia, industry, and government have to work together better in order to achieve top results. In Germany, Siemens, in cooperation with the University of Berlin, the automotive industry, alongside the University of Aachen, or the center of excellence of logistics at the Technical University of Munich are benchmarks. Again, the critical map is important to achieve state-of-the-art research results. Against the background, CELARC's WMG, the University of Warwick, as the nucleus for the academic partnership, with intensified work also with other universities, we just signed a long-lasting contract to locate some further hundreds of engineers and development engineers at the campus. We also strongly support the technology strategy board. We want to see its role enhanced in the UK. It has enabled a number of advanced research projects in the UK with suppliers out of the UK and technology companies. And we created the ref plug-in hybrid solution for Jaguar, as well as Land Rover Range E program for absolute ultra-low emission solutions. Great result. And these research projects create opportunities, not only for the automotive industry, but for the wider market. A great example is a small company, for instance, Platonshed. Their turbines can be used as range extenders in the automotive industry, but also there is a stationary version to generate energy. And that's a huge business. But as mentioned already earlier by John, strategy is a one issue. Implementation is just another one. And in the industry, strategies are defined, aligned, and communicated only after intensive discussions. However, the real challenges are in the implementation and in the details. Functional silos complicates the processes very, very often. Therefore, we introduce cross-functional policies and processes. And in accelerating the implementation of an industrial policy or strategy, I think it's clearly favorable to have a one-stop shop, a face-to-face partnership. Strengthening local decision making can be another accelerator. The decisions can be made best where the work is done and where the implications can be felt directly. To wrap up, today, the automotive industry is facing a very, very critical period. With its grappling with overcapacity, especially in Europe, margin erosion, economic challenges, and currency imbalances. On top of that, there are industrial policies which increase, with increased regulations, and in many areas, we see neither a fair nor a free trade globally. And so the automotive industry is at a threshold of a paradigm shift. Now up to 2020, the global automotive industry is expected to grow from 75 million units a day to 110 million units. And the evolution of technology is faster than ever. And groundbreaking blue ocean technologies are necessary in order to cope with modern mobility. And increasing environmental requirements, low consumption, low emission technologies, connectivity. These elements are at the very beginning. And these are huge markets. The expected turnover goes in the hundreds of billions per year. And that's the opportunity for the UK. The cards are being reshuffled right now. The UK has great engineering and design talent. Team UK can be a winner. Together, we have many of the answers in the room which can turn those opportunities into a truly prosperous future. I am looking forward to discussing some of them with you this evening. Thank you.