Good morning, ladies and gentlemen. Warm welcome to Zumtobel Group's conference call on the Q1 results for the financial year 2026-'27.

Joining me today, as said, is Alfred Felder, our CEO; Thomas Erath, our CFO; and for the first time, Heiner Lang, our designated CEO. Alfred will cover the highlights of the quarter, followed by Thomas with the financial performance.

Afterwards, Thomas, Alfred and Heiner will be available to answer your questions. The report and the presentation are available on our website, where a recording of this call will also be provided afterwards.

And with that, I hand over to Alfred.

Thank you, Eric. Good morning, and welcome, ladies and gentlemen.

Thank you again for joining us today. Before we move into the project highlights, as Eric announced and the financial results for the first quarter, I would first warmly welcome Heiner Lang, our designated CEO and my successor.

Heiner is joining our analyst and investor call for the first time today. As it was announced on August 17, Heiner has been appointed as the future CEO of the Zumtobel Group.

He has been a member of the Management Board since September 1 and will take over as CEO on October 1. Heiner, I would like to give you the floor to introduce yourself before we continue with our presentation.

Yes. Thank you, Alfred, and good morning to everybody.

I'm very pleased that I have joined Zumtobel just 48 hours ago. I'm 50 years old, 23 years of -- thereof, I'm married with my wife, Julia.

We have a son who is turning 16 in a couple of days. And I'm very happy that I could join Zumtobel in a very interesting period of time where we have great, let's say, challenges, but also endeavors in front of us, to create a new chapter for the company.

Of course, it's much too early to say anything in detail today. So I'm starting my, let's say, 100 days tour to listen, to understand, but also to recognize where we have probably the shortfalls and where we have the potential, how we could develop the company into the future and then get back to profitable growth, what is our main goal and my personal ambition.

I would say I would leave it like this today. I have more to say in a couple of weeks, and then we see again.

Thank you, Heiner. All is clear.

Heiner will then conduct the half year results in December. And I think then he will be able to tell you much more already.

So Heiner will stay with us for the rest of the call. So please also feel free to address any questions to him during the Q&A session.

And with that, as usual, I would again guide you to a couple of highlights indicating that we are gaining traction on those strategic pillars, what we have. First one, this Bleckmann distribution center in U.K., what we did, where we provided the complete lighting solution for an Amazon distribution center here in Lutterworth.

The project covered the supply of the products, typically our high runners, the TECTON II and the CRAFT II plus the lighting system along with the complete installation and the project management service. I'm proud to say that we supported this project from the initial planning through the whole execution.

Second, Vatican, as you know, we are the light partner of the Vatican. Again, another highlight, the Vatican Necropolis beneath St.

Peter's Basilica, what we did, demonstrating it here the expertise on the lighting. Here, the challenge is that's an underground location is isolated from the outside and the humidity levels here are between 98% and 100%, which is particularly demanding conditions also for lighting fixtures.

Then a very far away project, Auckland in New Zealand, that's the largest infrastructure project, the Auckland City Rail Link installation, where here we have equipped 3 stations with different type of luminaires, also including the drivers on DALI-2 from Tridonic. Again, as I indicated a couple of times before, we made progress again in stadium here this time, an example in Austria, the Graz Liebenau Stadium, what we did the home of Sportklub Sturm Graz since 1902.

And this was upgraded into the new floodlighting using our Altis G5 LED luminaires, and it's now UEFA Level A standardized. Then again, a framework agreement with Konzum in Zagreb, Croatia.

That's here, the customer is operating one of the largest retail networks in the Adria region. And here, we are doing both renovation projects as well as new projects across Croatia, Slovenia, Bosnia, Herzegovina and Serbia, again, with our flagship product the TECTON continuous-row lighting system.

Also in the next couple of years, also up to 10 new stores are planned next to the refurbishment. So -- and last but not least, I would just give you an update.

We are currently not allowed to share the pictures here openly from the customer data center update. Here, this is really emerging as one of the key growth engines for our business.

Here, we have, for example, one example in quarter 1 for the Nordics. Here, we have secured 2 major projects.

And typically, these projects are between EUR 1 million and EUR 1.5 million, where we equipped the entire light for this data center. And in addition to the project volume, these opportunities will also provide attractive recurring revenues with long-term service agreements, creating really a profitable growth in the future.

Let me now give you an overview before I hand over to Thomas on the financial performance of our first quarter. Again, especially here in the European market, we are facing the continuous challenging business environment.

Market conditions are remaining difficult. At the group level, revenues declined slightly by 0.9% to EUR 264.1 million.

Here, the Lighting Segment generated EUR 211 million, slightly above the prior year, while the revenues, especially in the Components Segment amounted to EUR 67.5 million or 4.8% below last year. The adjusted group EBIT increased to EUR 8.2 million, corresponding to an adjusted EBIT margin currently of 3.1%.

These figures are in line with our guidance, clearly show that the challenges facing our company remain, but they also demonstrate that the measures we have been initiated, we are having a positive impact. This, I think we have discussed with you in the last call when we did the year-end, the progress what we made with our efficiency program.

And with this, I would like to hand over to Thomas, who now will explain these results in more detail.

Thank you, Alfred. Good morning, ladies and gentlemen.

Let me start with the Lighting Segment. Q1 revenues in the Lighting Segment amounted to EUR 211.1 million and were 0.2% above the previous year.

Revenue increases in the Northern and Western Europe and overseas regions were able to compensate revenue declines in the DACH, Southern and Eastern Europe regions and the pricing pressure in this segment. Adjusted EBIT in the Lighting Segment increased from EUR 11.4 million to EUR 12.2 million (sic) [ EUR 12.5 million ].

Our adjusted EBIT margin rose to 5.9%. Cost saving and higher revenues contributed to these results.

Let's move to the Components Segment. Revenues in the Components Segment declined by 4.8% to EUR 67.5 million in the first quarter.

With the exception of Asia Pacific, all other regions recorded declining revenues due to the difficult economic and market environment. Adjusted EBIT in the Components Segment was slightly above the prior year at EUR 1.4 million in the quarter.

The adjusted EBIT margin stood at 2.1%. Lower material costs were able to offset the decline in the revenues.

Slide 7 shows the Q1 results for the group. Revenues in the first quarter fell by 0.9% to EUR 264.1 million as a result of the decline in the Components Segment.

Adjusted EBIT increased to EUR 8.2 million compared with EUR 6.6 million in the first quarter last year. Despite the revenue decline in the Components Segment, the adjusted EBIT margin improved to 3.1%, thanks to lower material costs in both segments and the ongoing efficiency measures.

Slide 8 provides you with information on our income statement. As I mentioned, our adjusted EBIT increased to EUR 8.2 million.

Special effects were negative at EUR 0.7 million and were related to the efficiency program. After the deduction of these special effects, our EBIT totaled EUR 7.5 million.

Our financial result amounted to minus EUR 2.8 million and net financing costs amounted to minus EUR 2.3 million. Other financial income and expenses totaled minus EUR 0.5 million and included the interest expense for pension obligations, FX and hedging valuation.

Profit before tax totaled EUR 4.8 million compared to minus EUR 3.9 million last year. Income taxes amounted to minus EUR 0.6 million.

As a consequence, net profit increased significantly to EUR 4.2 million. Earnings per share equaled EUR 0.11.

Let's move to the next slide, the cash flow statement. Cash flow from operating results increased year-on-year from EUR 12.8 million to EUR 20.8 million, mainly due to improved profitability.

The change in other operating items amounted to minus EUR 10 million, mainly due to the reduction in provisions for variable remuneration components. Cash flow from operating activities stood at minus EUR 4.2 million versus EUR 1.3 million last year.

Cash flow from investing activities amounted to minus EUR 12.2 million. As a result, free cash flow equaled minus EUR 16.4 million versus minus EUR 10.6 million last year.

Cash flow from financing activities amounted to EUR 4 million versus EUR 12 million last year. Compared with the prior year period, borrowings were EUR 10 million lower.

Let me finish with Slide 10 and some comments on our balance sheet. The balance sheet structure remains stable.

The equity ratio is with 43% on prior year level. Net debt rose in comparison with the year-end close to EUR 148 million.

Our debt coverage ratio equals 1.64. And with this, I hand back to Alfred.

So before turning to our outlook, let me briefly revisit the market outlook slide from July. You know this already for Europe.

The underlying Euroconstruct data from June has not changed since that time. But we have seen confirms the previously committed and communicated trend.

2026 remains in line with our expectations, while the outlook, especially for 2027 continues to point towards stabilization and a gradual recovery. In other words, the sector is gradually coming out of the recession, the cycle appears to have turned even though the pace of recovery remains moderate, especially in key countries like Germany and the broader market environment is still challenging.

With this recovery, we continue to expect new build growth will take the lead from 2027 onwards, which was for many years not the case, while the renovation remains a structural pillar, especially in the nonresidential construction and will be supported by regulatory and environmental requirements. Again, this backdrop, our strategic priorities remain unchanged.

We are focused on capturing renovation opportunities and positioning the Zumtobel Group to benefit from the anticipated upturn in nonresidential, especially new construction. But as you all know, the lighting industry typically lags behind in the construction cycle.

We expect that any sustained market recovery to translate into an increased demand for solution in a certain time delay. And that brings me directly to the outlook slide.

The overall market environment, as we said several times, remains challenging, but with the measures we have taken in the efficiency program in place, we have set a clear course to position the company for sustainable growth and continued innovation. With the reference of these factors, we expect our revenue to be at the previous year's level.

On the margins, we expect an adjusted EBIT margin between 3% and 5% for the entire year. Planned CapEx remains at approximately EUR 50 million.

Before we take your questions, I would like to add a personal note. As this will be my final conference call as the CEO of Zumtobel Group, I would like to thank you for your trust, for your interest and the constructive dialogue over the past years.

I have appreciated the many valuable discussions what we have over the years. And I'm confident that the company is well positioned for the future, and I wish Heiner, the Management Board and the entire Zumtobel Group team every success in the years ahead.

And with this, we are ready for taking your questions. Thank you for listening.

Congratulations on the improved results. Mr.

Felder, thank you very much. It was an absolute pleasure to join all these conference calls and conferences together with you all the best, Mr.

Felder. Mr.

Lang, congrats on the new position, also all the best for this new position. From my side, just two questions for now.

Firstly, could you maybe give us your view on the rather significant differences in the regional developments in this quarter? And secondly, how should we think about volume development and pricing by division for the rest of the year and what is embedded in the current guidance?

Perfect. Yes.

Thank you very much, Mr. Steiner.

It was also a pleasure always from my end to talk to you and exchange the views. Let me maybe start with the second question first, especially on the prices.

I think we have mentioned it in the last quarters, we do see quite significant price increase, not only in the raw material, be it steel, be it copper, be it aluminum, but recently also on semiconductor due to the shortage of the semiconductor, what we have. And obviously, that will lead us that also we have to increase our prices.

That's already the case on the component level. Interestingly, here, especially those Chinese competitors of us have done this already, a couple of months back before the summer time.

And when it comes to the volume development, we are seeing in some of the products a higher volume development, but this is partly the fact that due to the higher efficiency now what the drivers do have, the customers needs to can use lower power drivers but are also more in volume, but less in price. On the regional development, I think Thomas has already mentioned it on the components level, we are seeing some development in Asia, but the rest remains flat, especially in our DACH territory.

On the illumination segment, we have a good mix of growth countries, be it Italy, for example, be it U.K., but also be it some overseas countries in China as well as in South Asia. What remains challenging is the DACH territory, especially upfront Germany and with a flat development in Switzerland and in Austria on the illumination side.

Firstly, coming back to Patrick's question also on volume and pricing. Did I get this correct that the improvement in components now in the first quarter was due to better volumes, pricing still weak, but this should gradually improve then?

No. Maybe if I jump in on that, what I wanted to say is we are not really seeing an improvement across the regions in volume.

Otherwise, we would see a better growth. And you have seen we have still a negative development on our top line, and that's a result of still extreme prices under pressure with a rather stable volume and also with the fact that for a lot of applications, not the higher value drivers are used, but the mid-value drivers because they are good enough to drive these efficiency levels of LEDs.

Okay. Understood.

And then second question, could you give us a number for the cost savings you realized in the first quarter? And is it possible to split it in the divisions?

In the cost savings based on our...

Compared to what? The previous to the year-end or...

Exactly. I think last year, you realized this EUR 10 million, you're guiding another EUR 40 million, EUR 50 million.

And how much of the cost savings you realized in this first quarter? Is it possible to quantify?

Well, it's very difficult to quantify, but we are still in the progress of this efficiency program, and we expect another significant saving this year, which will be also in the region between EUR 7 million and EUR 10 million.

Okay. Understood.

And lastly from my side, Mr Felder, for the great communication and everything in the past and I wish you all the best for the future.

Thank you. Maybe just if I may add qualitatively, we have, I think, mentioned that there are a couple of phases in this program.

We are currently in the phase that we have built up resources in our global business centers. This is up and running that this last quarter and the next 2 quarters, we will train these people in the different functions, be it lighting planning, be it in the all administration and the finance and Thomas [indiscernible] of it.

And once this is ready, we need to see that they are well trained, then we will shift the competence completely there, and that would automatically then result in reduction of cost in high-cost countries. And obviously, it depends a little bit how fast all these people are up and running, but the target is, again, what Thomas said, a high single-digit additional savings what we plan for this year.

First off, thank you, Mr. Felder, for all the earnings calls, and it was a pleasure to meet you lately as well at the Light + Building, and welcome to Dr.

Heiner. I have two questions, please, just two follow-up, maybe three.

The first one is on gross margin improvement actually, 70 basis points to 37.4%. Just if you could help us how much of that improvement should we consider structure versus any benefit that might have arise in Q1?

And if I may add here also how much of the gross savings are actually dropping through EBIT as well? That's the first one.

So the gross margin improvement, I think a lot has to do that we are still continuing to aggressively try to save costs on the materials on one side. And here, we have made despite the fact that costs are increasing, gain additional cost savings.

And then as I said, the gross margin improvement in some countries already in the illumination business as well as in the Components business, we have been able to increase prices and hand it over to the market, to the customers. Simply also, it's a little bit easier because our friends from China are extremely highly under pressure.

I'm pretty sure you have studied their balance sheets, they are deeply negative, and that's a result that the whole market has been able to push the price increases through.

With your question regarding savings dropping to EBIT, our savings are stated gross, as you know. And we have material shifts in our material ratio, and we need to increase the prices in order to keep our margin stable.

But if you look only at our savings program, I would say it's -- the savings coming to the P&L are below EUR 5 million, but very close to EUR 5 million.

That's very helpful. Then I had a follow-up on the regional mix.

Obviously, Asia and Americas has grown particularly well in Q1. I'm just trying to go back.

So you mentioned Asia was particularly impacted by components. So I'm just trying to understand, is Americas performance due to, let's say, a weaker Q1 comparator?

Or are you seeing any main, let's say, project-led applications just the data center sports and infrastructure that could help you grow throughout the year in Americas as well?

Yes. As you know, we should not over-evaluate the Americas and as well as some parts of Asia because in the U.S., our revenue is relatively little compared to the total revenue.

That's true for both the Components business as well as for the Lighting business. But the good news is that we have been able to stabilize the business there.

When it comes to Asia, we have a significant growth in both segments, Lighting and Components in China. But when we talk about larger countries, we are very proud on the progress what we do both, again, in Components and Lighting on Italy.

Also in some of the Eastern European countries, I would name one like Romania, where we have a high double digit. And obviously, as we have indicated, we have continued to invest in the Middle East territory despite the war, we have been able to gain traction here and have a growth.

But on the other hand, I don't want to hide that especially the DACH territory on components level here, first of all, Germany is remaining extremely weak.

I just have a quick third one, if I may, on working capital. I think it rose to 22.2% of rolling sales and it contributed to a weaker free cash flow.

So I just wanted to get a sense if this is seasonal and should we expect to normalize throughout the year?

You are fully right. This is a seasonal effect, and this should flat out throughout the year.

Just a quick question on the high-performance transformator you talked about in the past with the use case for data centers. Is there any update you could provide us on this topic or a time line would be helpful.

On the data center from the component level?

Yes. Power conversion.

Yes. Yes, we are intensively working on the power conversion.

It's still too early to communicate, but we are with the key customer having good discussions on progress. All the indicators, what we do have signal that we have here a clear differentiation.

And obviously, between middle of 2027 and end of 2027, we would see the first momentum. And I think Heiner in this case, will be able to share this with you.

But all in all, it's looking very promising.

Yes. Thank you again for listening.

Just last statement from my side. Please extend the same support what you did to me, also to the new team led by Heiner, and Heiner will then conduct together with Thomas the Q2 or the half year call beginning of December.

Have a great day. Thank you.