Thank you, and welcome to our earnings call for Q1. I'm hosting the call together with our CFO, Timo Krutoff, who will present our financials in detail in a few minutes.

To start the call, let me briefly talk about the current macro picture and key financials, as well as give you a short strategy update. As we entered 2026, we already assumed a continuation of a highly volatile and uncertain economic environment, and this has broadly materialized.

What we did not anticipate was the outbreak of the Iran conflict and its broader implications. At the same time, it is important to emphasize that our performance is not only driven by the external environment.

Over the past quarters, we have been consistently addressing internal challenges and improving our operational setup, and we're seeing early signs of progress in several areas. Looking at Europe, the macro backdrop remains weak, particularly in Germany, with modest GDP growth and continued cautious investment behavior across industrial customer groups.

Manufacturing PMIs have shown some recent improvement, but given the usual lag of 3 to 6 months, this is not yet reflected in our demand. At the same time, sentiment indicators, such as the ZEW indicator—for the German speakers among us, it's Zentrum für Europäische Wirtschaftsforschung—the economic sentiment in Germany overall has weakened significantly, highlighting the fragile environment.

With the conflict, the trajectory of a manufacturing recovery has become more uncertain again, given the geopolitical escalation and its potential impact on energy prices, inflation, and export-oriented industries. In the US, GDP growth remains higher than in Europe, but the environment is also far from stable.

For FoodServices, the Restaurant Performance Index is slightly above the expansion threshold, indicating some stabilization, but without a strong momentum so far. In Office Furniture, demand continues to recover selectively by segment, but overall investment decisions remain cautious and volatile.

To summarize, the key takeaway for Q1 is that the economic environment evolved largely in line with our expectations, except for the geopolitical escalation. The Iran conflict did not materially affect Q1 performance, but it clearly increases uncertainty for the macroeconomic framework going forward.

Let me now walk you through our financial performance in the first quarter. As we outlined with our guidance at the end of March, Q1 was expected to be a weak quarter, and that is what the numbers reflect.

Starting with sales, group sales came in at €225.7 million, with organic growth at -6.7%, which is consistent with the run rate we have seen in Q4 and throughout last year. What we see for the first time in Q1 is the impact from the discontinuation of the FoodServices fit-contract business.

This structurally reduces organic growth by slightly more than 1 percentage point. On a like-for-like basis, excluding this effect, we therefore see a slight stabilization of the underlying development compared to Q4 last year.

Turning to profitability, adjusted EBITDA amounted to €5.5 million, translating into an adjusted EBITDA margin of 2.4%, mainly reflecting the lower sales level. Importantly, we were able to hold the gross profit margin stable at Industrial & Packaging and at Office Furniture & Displays.

At group level, the gross margin of 39.5% is slightly below prior year, primarily due to FoodServices. At the same time, lower marketing and personnel costs helped to partially offset the top-line impact, even though they cannot fully compensate for volume effects in a weak market environment.

In parallel, we're continuing to invest into the business and our turnaround activities, particularly in areas such as commercial initiatives, system and process improvements, and the continued implementation of our new operating model and leaner cost structures. This will help strengthen our operational foundation and support the return to profitable growth.

Finally, on cash generation, free cash flow was -€9.8 million, in line with our expectations and following the EBITDA development. Net working capital development was a headwind in Q1, mainly due to a buildup in trade receivables compared to the low year-end position.

Let's now continue with a quick look at our TAKKT Forward strategy and our progress against the priorities we've set ourselves. I will keep this deliberately short as the content is largely consistent with what we discussed in more detail at our analysts' conference.

Let me therefore give you a brief update on the progress we're making across the three pillars of TAKKT Forward, with a clear focus on execution. Starting with focus, our strategy here is to further sharpen the portfolio around our core businesses, strengthen the independence and accountability of the divisions, and consistently focus on activities that contribute to profitable growth.

This also means that we are actively reviewing and exiting smaller or structurally less profitable business areas. This included measures such as the sale of mydisplays, as well as the integration of Post-it into Displays2go, and the discontinuation of the FoodServices fit-contract business.

We will continue this process in 2026, further streamlining the portfolio and focusing our resources on those areas where we see the strongest long-term potential. In parallel, we have strengthened divisional leadership in two important areas.

At FoodServices, Carrie Leweling has taken over as divisional president. Given the challenging situation in FoodServices, this is a very important step.

With Carrie's deep industry experience and strong commercial track record, we clearly expect a noticeable improvement in commercial execution and performance over time, even though the environment will continue to be demanding. At Industrial & Packaging, Helmar Hipp has assumed the role of divisional president on an interim basis.

Helmar brings extensive commercial, omnichannel, and e-commerce experience, with a strong track record in driving profitable growth, simplifying assortments, and strengthening brand positioning. In previous leadership roles, he successfully combined customer focus with disciplined execution, exactly the capabilities we need to further accelerate in I&P.

Over the past months, I had been managing I&P directly alongside my group responsibilities. During that time, I had the opportunity to work very closely with the team, gain a deep understanding of the business, and jointly define key strategic priorities and actions.

With Helmar now in charge of the division, this provides strong continuity in execution while allowing me to focus on the overall portfolio development and strategic steering of the group, while Helmar and the I&P team drive the next phase of commercial progress in our core business. On growth, our priorities remain very consistent with what we have outlined over the past quarters.

We're focusing very clearly on driving new customer wins and expanding business with existing accounts through targeted commercial initiatives across all divisions. In Industrial & Packaging, for example, we have recently won a new large enterprise customer by offering integrated service solutions, ensuring compliance with mandatory safety inspections across office and production environments, combined with full digital integration into customer procurement systems.

These solutions address critical customer needs, generate initial order intake, and create recurring sales potential. In FoodServices, we are marking tangible progress in building our business with emerging restaurant chains.

We have developed a solid pipeline and recently onboarded another customer with an expected contract volume of around $3 million annually. In addition, we continue to strengthen the positioning of our core brands in key markets.

Overall, these measures are helping us to gradually rebuild commercial momentum, even in a cautious demand environment. Finally, performance: here, we continue to systematically advance our operating model.

Our priorities are the further elevation of customer experience across the entire omnichannel, while increasing efficiency through standardization, automation, and relocation of transactional processes. As part of this, we progress the ongoing rollout of the TAKKT Competence Center and selective outsourcings where scale and efficiency benefits are clear.

In addition, we're deepening initiatives in procurement, freight, and warehousing, building on the progress already made in 2025. This includes supplier consolidation, best-cost country sourcing, and footprint optimizations.

We're focused on quality and sustainable structural improvements, ensuring that the measures we implement translate into lasting benefits. We expect the positive impact to build step-by-step and become increasingly visible over the course of the second half of the year.

In parallel, we continue to make progress on our IT and systems roadmap, which is a key enabler for automation, efficiency, and future growth. With that, over to Timo.

Thank you, Andreas. Let me now take you through the financials for the first quarter.

Starting with sales for the group in Q1, group sales came in at €225.7 million, down 10.3% year-on-year. The development was driven by an organic decline of 6.7% and a substantial negative currency effect, mainly from the weaker US dollar.

The organic development is fully consistent with the run rate we have seen in recent quarters. As mentioned earlier, we now see for the first time the impact from the discontinuation of the FoodServices fit-contract business, which alone weighs on organic growth by slightly more than 1 percentage point.

As Andreas mentioned, we achieved a slight stabilization in Q1 sales if we look at it like-for-like. Looking at earnings development, the largest negative driver is the lower sales level, which reduced gross profit by around €10 million year-on-year.

In addition, we saw slightly negative effects from gross profit margin, driven by FoodServices, while margins at Industrial & Packaging and Office Furniture & Displays remained stable. This was partially offset on the cost side.

Personnel costs were lower, reflecting rightsizing and structural measures. Contrary to the rightsizing impact, we incurred higher bonus costs compared to the prior year.

Marketing and other costs were also reduced, supported by FX, more disciplined spend, and efficiency gains. At the same time, we continued to see increased OPEX in line with our activities to improve processes and systems.

One-time effects came in at a very similar level to prior year, at just over €1 million, and therefore did not materially change the year-on-year comparison. As a result, EBITDA for Q1 2026 came in at €4.4 million, corresponding to an adjusted EBITDA margin of 2.4%.

Let me now turn to Industrial & Packaging. Sales in the division declined by 5.6% year-on-year, with organic growth at -5.8%.

This means the run rate remains very similar to 2025, in an environment where customer behavior in Europe continues to be hesitant, driven by economic uncertainty. The gross profit margin remained stable compared to the prior year, reflecting disciplined pricing.

On costs, expenses were largely in line with last year. This reflects two opposing effects: on the one hand, efficiency gains and a leaner cost base, and on the other hand, continued investment into commercial initiatives as well as systems and process upgrades.

One-time costs were very similar to the prior year at around €0.5 million. EBITDA was at €10 million for the division.

Adjusted EBITDA margin came in at 7.8% compared to 9.7% in the prior year, with the decline driven by the lower top line. Let me now move on to Office Furniture & Displays.

Sales in the division declined by 12% year-on-year. This headline number is significantly impacted by currency effects, with the weaker US dollar weighting heavily on reported sales.

To provide a clearer picture of the underlying development, we are therefore also showing the top-line development in US dollars. On this basis, sales were nearly stable in Q1 with 2.1% decrease, representing a clear improvement compared to Q4.

Growth with business clients at National Business Furniture helped to compensate for weaker demand in other customer segments. Displays2go came in slightly below prior year, after recording positive growth in Q4.

On profitability, gross profit margin was slightly improved year-on-year. Cost positions were very similar to prior year when adjusted for currency effects.

One-time costs were significantly lower than €1 million, well below the prior year level. As a result, adjusted EBITDA margin came in at 2.1% compared to 2.6% last year.

The decline is mainly explained by the lower reported sales level, while the underlying profitability of the business remained stable. Sales in FoodServices declined by 21.5% year-on-year.

This top-line development was also significantly impacted by currency effects, but also by the discontinuation of our fit-contract business, as well as challenges in some of our sales channels. Organic sales were down by 13.9%.

Around 6 percentage points of this decline are attributable to the discontinuation of the fit-contract business. This is fully intentional and in line with our strategic focus on margin quality and volatility reduction.

Beyond that, performance continues to be impacted by weak call center sales, with demand remaining subdued in the current environment. Looking at profitability, the gross profit margin came in significantly below prior year.

Despite substantial cost savings, particularly in personnel expenses, the lower gross profit could not be fully compensated. As a result, adjusted EBITDA margin declined to -4.9% compared to the positive 1% in the prior year.

To summarize, FoodServices remains the most challenging part of the portfolio. The deliberate exit from low-quality project business weighs on the top line in the short term, while market conditions continue to be difficult.

That said, the cost base has been adjusted, the strategic setup is now clearly focused on improving underlying performance going forward. Let me now briefly cover cash flow generation in the first quarter.

Free cash flow came in at -€9.8 million compared to -€5 million in Q1 last year. This development was expected and broadly follows the EBITDA trend.

Starting with cash flow before changes in net working capital, this line was lower year-on-year, mainly reflecting the weaker EBITDA performance. Net working capital was a cash out in Q1, driven primarily by an increase in trade receivables.

This is partially a seasonal effect and reflects the comparison with a very low year-end position. On capital expenditure, we saw slightly lower investments compared to prior year.

At the same time, we benefited from proceeds from the disposal of non-current assets related to a real estate sale in the Netherlands, which provided a positive cash contribution. Lease repayments were broadly in line with prior year.

The slight increase you see here is due to a one-off where prematurely terminated the lease of an office building here in Germany. Looking at our balance sheet, not much has changed here compared to the end of 2025.

We can keep it short. Net financial liabilities increased slightly to €138 million compared to year end.

This was mainly driven by the negative free cash flow in Q1, which, as discussed, was expected and seasonal in nature. Our equity ratio remained virtually unchanged at around 50%, underlying the continued solid capital structure of the group.

With that, back to Andreas.

Thank you, Timo. Let me now come to the market environment and our priorities for 2026.

Compared to our last call at the end of March, our overall market expectations and strategic priorities remain largely unchanged. Since early March, the Iran conflict has added a new geopolitical risk factor.

We will discuss the potential implications for our guidance and risk assessment on the next slide, but it is already visible that this development has materially impacted macro expectations. As a result, GDP growth forecasts for our core markets have been revised downward notably, reflecting higher uncertainty, inflation concerns, and pressure on investment sentiment.

Looking at PMIs, the signals are mixed. Manufacturing PMIs have remained relatively stable, which is important for our Industrial & Packaging activities.

In contrast, service PMIs in Germany and the eurozone have dropped, indicating weakening momentum in more consumer- and service-oriented parts of the economy and declining business confidence. Against this backdrop, our priorities remain clear and consistent.

On the commercial side, we continue to push our omnichannel sales model, scaling initiatives that work well, and roll out targeted go-to-market actions across divisions, regions, and channels. The focus is on accelerating commercial recovery where we see traction, while staying close to customer needs.

Operationally, we continue to leverage our new operating model. This means simplifying, automating, and relocating processes, accelerating system improvements, and further strengthening efficiency across the group.

In parallel, we're continuing to work on rightsizing, procurement improvements, and freight and warehouse optimizations, all aimed at structurally improving profitability. Let me now walk you through our guidance for 2026, starting with the top line.

As discussed before, we expect a gradual improvement in sales development as 2026 progresses. If you look at Q1 and adjust for the discontinuation of the FoodServices fit-contract business, organic development in Q1 showed a slight improvement compared to Q4.

That is the trend we want to build on as our commercial measures gain traction. At the same time, uncertainty remains elevated and visibility on demand across customer segments limited.

Therefore, our top-line guidance continues to reflect a broad range of outcomes, with organic sales development expected to be between -7% and +3% for the full year. Turning to profitability, we will continue executing the structural improvements initiated last year.

One-time costs related to these measures are expected to be slightly below the prior year level. Based on our volume planning for the course of the year and with measures further contributing, we target an adjusted EBITDA margin in a range of 2% to 5% for 2026, depending on our top-line performance.

On cash, our focus remains on discipline and structural improvement. We will continue to release net working capital, while at the same time evaluating additional options to further strengthen cash generation.

CAPEX will be higher than last year, driven by targeted investments into processes and systems that support our IT roadmap. Based on this, we expect positive free cash flow for the year as a whole.

With that, we're happy to take your questions. Over to the operator for Q&A.

Yes,

Now I have found the button. Sorry.

Sorry. Yes, hello.

Thank you for the presentation. I have a question on price increases for packaging materials.

On the one hand side, they might of course burden your gross margins somehow. On the other hand, you are also a player in packaging, could it help you raising prices for packaging products?

I can take that, I think. In general, I think, yes, of course, we are now being hit by price increases on the packaging side.

I think it's fairly normal in the packaging business that a lot of the supplier agreements have an index associated with it. Whenever the raw material prices go up, unfortunately we get higher prices; when they go down again, the price is lower.

I wouldn't say it's a competitive advantage in either way because most of the big players have these kind of rules. Having said that, of course, let's see how the whole topic develops.

It's always a question: how much do you still have on stock or not? Do you need to do it right away?

We're in tight negotiations with some of our suppliers that looking at cost breakdowns wherever we don't have an index-based contract. I would say, yes, it is a topic.

It's not huge so far, and yes, we'll have to look what we do on the pricing side here, but it's the main part where we see a price increase hitting us in the whole of I&P.

Can I add another question? Of course we knew that the start of the year would be difficult, and so I would say the quarter is as expected, I would say.

You expect an improvement for the quarters to come, and therefore it would be interesting how was the start in April and the start into Q2?

Thank you for the question, Christian. You're right.

We saw Q1 broadly in line with expectations, as we outlined in the prepared remarks, right? What we are seeing in April, and as far as longer-term first incoming order books are looking, April turns out to be broadly equally in line with our expectations, following the trend we've seen in Q1.

Maybe let me add one additional comment to that. If I just look at Q1, I think we saw an improvement month-on-month.

We had a very weak January, February was better, March was even better. Therefore, already within the quarter, I would say it's moving in the right direction.

That's helpful. Thank you.

Thank you, everyone, for your participation today. We will keep you updated, and we're looking forward to talk to you on the road or at upcoming conferences.

We will publish our Q2 results on July 30th. Have a great day.

Thank you.

Thank you. Bye.

Bye-bye.