Signify Nv Ord

Hello, welcome to the Signify 3rd Quarter 2025 Results Conference Call, hosted by us, Templeman, CEO, Selko Gosanovic, CFO, and Telga Gerdes, Head of Investor Relations. For the first part of this call, all participants will be in listen-only mode, and afterwards, there will be a question-and-answer session. If you wish to ask a question, please press key pound 5 on your telephone keypad. Please note that you're limited to one question and a follow-up per round. I would now like to give the floor to Delta Gerdes. Ms. Gerdes, please go ahead.

Good morning, everyone, and welcome to Signify's earnings call for the third quarter of 2025. With me today are us, Templemans, Signify's CEO, and Zeljko Kosanovic, Signify's CFO. I would first of all like to welcome us to his first earnings call as Signify's new CEO. During this call, us will take you through the third quarter and business highlights. After that, you will hand over to Zeljko, who will present the company's financial and sustainability performance. Finally, us will return to discuss the outlook for the remainder of the year and share some first reflections and priorities. After that, we will be happy to take your questions. Our press release and presentation were published at 7 o'clock this morning. Both documents are available for download from our investor relations website. The transcript of this conference call will be made available as soon as possible. And with that, I will hand over to you.

Thank you, Telke, and good morning, everyone. Thank you for joining us today. As Stelke said, this is my first earning call in this role and I look forward to this engagement with you this morning. Now, I joined the company six weeks ago at a time when the markets are indeed very challenging. So let's begin with some of the key market developments I have observed over the third quarter. Firstly, we see the ripple effects of tariffs as Chinese overcapacity is redirected from the US to Europe and other regions, and this is creating additional price pressure, especially in the professional trade channels in Europe and Asia, where competition has intensified. Secondly, in our professional business, we also see continued softness in important European countries, such as France, the Netherlands and the United Kingdom, and increasingly also in the US, where demand is slower or has been slower than expected in the third quarter. And this is especially the case for the public sector projects with government funding. And thirdly, in our OEM business, we see further compression of demand and continued price pressure, particularly in Europe as well. And this has been, again, intensified by the increased imports of Chinese components, putting pressure on the market for non-connected. However, I'm glad to say the market also presents opportunities that fit our strategy well. Our growth in connected and specialty lighting and particularly in consumer is very encouraging. The consumer business grew in all major markets and was particularly strong in India. And this strong performance of consumer was boosted by the expansion of our U portfolio and I'll cover that in a bit more detail a little later. Now, overall, connected and specialty lighting grew by high single digits across both the professional and consumer businesses. And worth mentioning is also our agricultural lighting business that delivered a strong seasonal performance, helping to offset some of the weaker areas of the portfolio. So overall, if I would have to summarize, this quarter underlines the resilience and growth potential of our connected and specialty lighting and the price pressure on the more commoditized products in the traditional trade channel. Now, let me move to an example that illustrates how our connected solutions are creating value for our customers and wider communities. I mean, despite the challenges in the European public sector, there are still great projects. And one of them is presented here. We just completed a street lighting project for the municipality of Montbartier in France. And the local municipality set out to modernize its public lighting with the goals of improving safety, enabling remote maintenance in a sustainable, cost-efficient way. and by implementing our SunStay Pro Solar luminaires that are fully integrated with our connected lighting management and the Signify Interact platform. And this all-in-one solar-powered solution allows the municipality to optimize luminaire runtime, control the systems remotely and significantly reduce energy costs while addressing environmental impacts. So it's a great example of how solar and connected technologies come together to support energy transition goals while delivering meaningful benefits for customers and communities. And we hope to see a lot more of that going forward. Let me move to the second example, the second highlight. I talked about it earlier, the exciting new portfolio expansion that supported the strong third quarter performance of our consumer business. And I just installed the Philips Hue system myself, and I have to say I've been super impressed by it. It's a really cool product. And Hue is truly the leading connected lighting system for the home with a very strong brand and a loyal, growing customer base. And the launch in September exceeded our expectations, creating strong demands with excellent execution, including well-managed availability on our e-commerce sites. And among the new innovations was a new feature that transformed existing Ulights into intelligent motion sensors that respond to movements. So really this way, you know, we continue to extend the role of U beyond illumination in our customers' home to integrating security, entertainment, and intelligent lighting. And also worth mentioning, we introduced the new essential range that introduces U to customers at a more accessible price range. So these are some highlights, and with that, I'll hand it over to Zelko, who will continue to cover the financial performance of the quarter.