WEBVTT

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Mr. Engelmann, you are the managing
director who was once again launched

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by the Berlin City Cleaning Service in
2019 with the aim of reusing many

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items that are still usable in themselves
and would otherwise have

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ended up at the recycling centers in
Berlin.

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What actually bothered you about
recycling?

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That is already ecologically responsible.

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You can then reuse the raw materials.

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Absolutely right.

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Of course, recycling is also ecological
and responsible.

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That's true, and I don't want to
contradict that at all.

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But if you look at the waste hierarchy,
there are points before

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the topic of recycling, namely waste
avoidance.

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Logically, this is always the best thing
if waste is not produced in the first

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place.

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This cannot always be done and
accordingly

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the topic of fish trap or reuse comes up.

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And that's exactly what they specialize
in.

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Why all this?

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You just saw how many great items were
handed in every day at

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the recycling centers of the Berlin city
cleaning service.

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And has the question been asked?

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It's just too bad to destroy it all or,
as you rightly say, recycle it.

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There's a lot more to it.

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In other words, to return the articles,
the products, to the cycle.

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And to come back to the question, the
topic of soot naturally

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saves energy, raw materials and water,
which would be needed

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for the production of a new product,
including a recycled product.

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And accordingly, the topic should always
be

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prioritized higher than the topic of
recycling.

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Can you describe this somewhat vividly
for the participants in our course?

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If I now give you a piece of furniture
that is

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still usable, let's say. What happens to
it?

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Is it a new owner?

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Finds?

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That's exactly what it's all about.

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We have different paths like such a piece
of furniture and then we are sometimes

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reached.

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So one way is completely correctly said
in one of the basket remember better

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help to hand over the piece of furniture,
with the note that it may be used again.

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The legal is always important.

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We can't just help ourselves to bulky
waste and say we can still sell this and

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that and that.

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There must always be the consent of the
person

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who is leaving, the person giving it up.

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Then there is the possibility that you
can drop off directly on site or again.

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We are a kind of Amazon Regius H stays,
where we

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also accept many, many goods here on
site.

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And the third variant that we offer is
that we actually pick up from

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households, the counterpart to bulky
waste collection, so to speak, which BSR

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logically offers.

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In the group.

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We are then serious, pick up the
furniture at home,

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sometimes free of charge, depending on
the value.

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What happens then? The whole thing is
brought to our warehouse.

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Well, look at the back of our furniture,
clean it, do small cosmetic repairs,

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polish it.

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This will certainly remove one or two
scratches.

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You have to say very clearly, depending
on the value.

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So if we have an Ikea shelf, then it will
give us a maximum of

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30 40% of the original price and of
course you differentiate

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again according to the quality or the
traces of use that have

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already been left behind with
higher-quality furniture,

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which of course then brings back in the
higher sales price.

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Logically, the topic of business
administration always plays a role here.

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Use effort to weigh things up.

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A little more effort will certainly be
put

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into it, so that we can then present a
used,

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but still very very charming product here
in our mall.

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And the nice thing about it is that it is
not an off-the-shelf

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piece of furniture, but it is very, very
individual pieces of

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furniture that you can no longer get on
the free market.

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The social trend of sharing is also going
right back there, towards individuality,

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towards charm.

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And that's exactly where we come into
play and can offer that

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and now you've already mentioned business
administration.

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Of course, I'm also interested in whether
the whole thing, which

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doesn't sound so uncomplicated, is worth
it at all.

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You are actually now building a parallel
value chain to what BSR

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is actually doing for Berlin's city
cleaning. Up.

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Does that help?

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Or is it actually subsidized for that in
the end?

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Exactly.

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So the real question is yes or the
economic question behind it is not always

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just this topic and that's what they
probably want to get at.

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Less waste then, but reuse creates added
value overall

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And is that then also economical in the
end?

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Yes, I can answer the question: It is
indeed a parallel value chain, if you

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will.

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However, not necessarily, because it
often contradicts the core business.

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Why?

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We are just shifting the activities
within the waste

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hierarchy a bit, as I said in the first
question.

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And then the question arises as to
whether to prepare the whole thing

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efficiently and in a process-wise clean
manner and to offer it to the customer.

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And the whole thing shows that.

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So the crux of the whole thing is to
create a system,

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to create processes, to create standards.

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That we have guardrails in the team that
you can quickly

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use as a guide and that certain
throughput times, as

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they say in retail, are kept short, so
that we can then also be economical.

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I started here with the vision of once
again leading the red and the black.

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This is also the very clear mandate of
the Supervisory Board and we are on a

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very, very good path.

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Exactly, because we are attacking
procedurally.

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Because we are looking at how we might
get better products,

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how we can build up cooperation in
addition to the products that come from

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höfen.

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Because this is also a way of waste
avoidance

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or resource conservation, if we receive

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items before they are even handed in.

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And if you think a little more broadly
with what we offer here, what we offer

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here.

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We also see ourselves a bit as a place of
experience for the circular economy.

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We offer workshops, we offer guided
tours, all as a

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complete package, that can pay off, but
then all processes have to mesh properly.

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That has to work.

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And yes, in the end, and that's the most
logical thing of all.

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That's why we're also striving for the
second or third location.

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Of course, the whole thing scales much
better if you have several locations,

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because then the overhead costs are
transferred to different stores or

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different stores and then the whole thing
becomes much more attractive.

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So in the end, it can definitely be
economically viable.

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And this also at wage conditions that are
absolutely common on the market.

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Will it be a retail tariff just like in
the Lidl, Aldi or the other big players.

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This is quite challenging in parts, but
if you approach the points I just

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mentioned in a somewhat structured way,
it is possible.

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Yes, and that's why I'm absolutely
convinced of and very, very optimistic.

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What exactly we will have achieved at the
end of next year.

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But I think that's a very important
point.

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Perhaps this is for sustainability as a
whole, that it is not

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such a niche or enthusiast project, but
that it also works economically.

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Just like our economy usually works. Me.

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Now it is such a single project, so it is
a very sympathetic

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and interesting showcase project
demonstration of the

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circular economy, but also certainly in
such a way that

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only a small part of the objects that
circulate in Berlin

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as a whole, that are still usable, can be
used to save them again.

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Then there are classifieds and
neighborhood platforms, there are also a

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few private second-hand shops.

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But most of it probably ends up in the
end: garbage today or in recycling,

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right?

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Well, I would like to go into the idea of
the point you just mentioned: the topic

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of profitability.

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This simply has to be understood, also by
the customers, and we have to

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differentiate external communication, and
this is very important to me.

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We are not a social department store.

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A social department store receives
exactly this subsidy that you mentioned.

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And sometimes we have to generate our
income through the price.

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That cannot be changed.

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And there are also one or the other
understandably who criticize

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that we are far too expensive in one or
the other product.

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Certainly, colleagues here in the team
make mistakes from time to time.

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That's human, that's part of it and that
will always happen.

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Nevertheless, we certainly don't have to
compete in

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terms of pricing, in quotation marks with
um um um.

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Now to the second topic, waste avoidance.

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In the end, I don't want to download
every additional second hand classifieds

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as competition, but a bit as a supplement
to the offer.

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Because you are absolutely right, not
everything can be avoided by far.

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Of course, there is also garbage, which
is garbage and it is not worth thinking

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about reuse.

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This must also be said very clearly for
hygiene reasons or other points where the

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effort would simply be far too great.

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Nevertheless, to give a few figures: We
have about 65,000 tons of bulky waste in

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Berlin.

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We have around 14,000 tonnes of
electronic waste at the recycling centres

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every year.

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And if, on the other hand, the number of
people we

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sold in the year was 25, because of about
600 tons,

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the rest of the question is yes, of
course there are

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many, many items in the difference that
could also have been reused.

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But for that you need capacities, for
that you need structures and

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that is a long-term project and also a
long-term long-term corporate

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orientation not only of the Berlin city
cleaning, but above all of

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the entire group and, above all, the
social mindset.

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And accordingly, we are already trying a
lot.

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We offer neighbourhood days, where we
exchange

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in the neighbourhoods and offer markets
that

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give away so that a lot of things
logically go

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to the man and woman, because the
potential

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is still really, really big.

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And if we want to achieve a real circular
economy, as the

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European Union says in the Green Deal,
for example, then

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it actually means complete recycling, and

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we are still extremely far along for
that.

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We are still extremely far from that.

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As nice as projects like you are.

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What is so from your point of view?

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What are the two or three crucial points
so that we can really

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get there in this direction and really
scale up what they are doing?

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From my point of view, that's putting it
relatively simply.

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The implementation is of course
unbelievable.

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So from my point of view, the economy is
definitely still optimized for producing,

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buying, using, throwing away.

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This topic, which has come up more and
more in recent years, has sometimes not

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existed to this extent.

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And many products are not designed at all
to be used in the long

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term, especially in the electrical
sector.

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Hammer glued housing.

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We have various spare parts, then we also
have the topic of software support.

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We can look at a large American provider.

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After certain years, the software simply
stopped supporting it.

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How do we then want to use the whole
article

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sensibly for several more years?

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So I basically have to change something
and then

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unfortunately it's like that, you know, I
know that

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buying new is sometimes simply cheaper
than a repair

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or a preparation of one on an article.

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In the interview at the beginning, we
have already outlined what such

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a cycle looks like, from dispensing to
processing to sales.

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We have ideas, we have logistics, we have
personnel costs and many other

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entrepreneurial costs.

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I have to wear it somewhere and so we
need a certain price.

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And if, then just new, new products from
the Asian market

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can be offered for money, where we can't
keep up with a used

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article, then the whole thing is
logically also uneconomical.

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From the point of view of the topic of
the review thoughts.

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That is certainly a point.

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And yes, in the end it's the social
mindset.

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We still needed the topic.

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It's rather a bit grubby flea market
image and you have to

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work on it, so that you can find
department stores through

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clean, handy used cars, there is
certainly a big player on the market.

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That the image of the topic of
second-hand reviews is simply

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upgraded, so that all social classes can
find access to it and it

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is also perfectly normal to say yes, I'm
going shopping there

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today and don't give to the big furniture
players or clothing players, but buy my

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things second-hand.

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And I think that's very, very important.

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This only works if the topic is
approached from different areas.

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Yes, Mr. Engelmann, Managing Director of
Ernst Meyer, thank you

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very much for the interview and it is a
very exciting innovation

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project and the very important question
of how we can change the

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common practice in the breadth of our
economy with such innovation projects.

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They only take up again late in a later
chapter and discourse.

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Thank you very much! With pleasure.

