Signify Nv Ord

Hello, welcome to the Signify Q1 2026 Results Conference Call, hosted by Ash Templeman, CEO, Zetko Kasanovic, CFO, and Telka Kerdes, 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 post pound key 5 on your telephone keypad. Please note, that you are limited to one question and a follow-up per round. I would now like to give the floor to Telka Helders. Ms. Helders, please go ahead.

Good morning, everyone, and welcome to Signify's first quarter 2026 earnings call. Before we begin, I'd like to draw your attention to the forward-looking statements, risks and uncertainties, and non-IFRS financial measures disclaimer on this site. With me today is our CEO, Az Tempelman, our CFO, Zeljko Kozanovic. During this call, Az will discuss the highlights of the quarter and key business developments. Zeljko will then walk you through the financial performance in more detail. Az will then come back to discuss the outlook and closing remarks. Our press release and presentation was published at 7 o'clock this morning, and a transcript of this call will be made available shortly after. And with that, I would now like to hand over to Az.

Well, thank you, Telke, and good morning, everyone. Good to have you on the call with us. Thanks for joining us today. Like Telke said, let me start with sharing some observations on the first quarter. It comes as no surprise that we continue to navigate a very uncertain global environment with, of course, the conflict in the Middle East, associated cost inflations, tariffs, softer demand, and also the overcapacity in manufacturing. And all of these things, of course, are reflected in our sales for the quarter. What we do is we remain very focused on what we can control. And through discipline, price, and cost management, I'm pleased that we maintained a strong gross margin and delivered also a solid cash generation. And when we look at the B2B side, the professional business, demand remains soft in the trade channels. across Europe and the US, and also on the public projects, so the more outdoor public projects. On the positive side, in Europe we saw a good performance on the indoor projects, and also in emerging markets we delivered growth despite the challenges of the Middle East. Now what stands out is our consumer business. Our consumer business, where on the positive side our sell-out to consumers continues to grow year on year, but our results were impacted by inventory adjustments from major retailers, leading to what we believe temporarily lower sell-in to this channel. We continue to focus our efforts and our actions to outperform these markets, and at the same time, of course, we progress our strategic portfolio review to focus the company for the future. We stay close to our customers and our suppliers. I've been visiting many of them and we remain confident in our ability to respond to market risks and opportunities. That's a short reflection on the quarter. Now let me share with you a few highlights. One of the areas we continue to invest in is our connected consumer offering. And at the premium end, of course, that is Philips NUBE. This quarter we launched an exciting new feature of Philips Hue called Spatial Aware. And that makes use of your smartphone or tablet and then you can set it such that it understands the layout of your room and then you can create much more natural and immersive light scenes. And this is on top of developments such as improved Apple Home integration and also an AI assistant. I think on the next slide you see the image of a meeting room of Fedabo's group's new headquarters in Italy. Fedabo is an Italian energy consulting firm that Joe signified because of our energy efficient solutions. It's a project we are very proud of. We installed 300 light points, but that includes a nature connect. You see it here on the ceiling. which you see here, but also pre-printed my creation pictures and through-line luminaires. So all of that resulted in a very energy-efficient lighting system, great lighting quality that supports the well-being of staff and the amphitheaters of Trevabo. And that brings me actually to the third highlight, because this quarter we also had the launch of our new sustainability program, or actually the next chapter of our sustainability program, Brighter Lives, Better Worlds 2030. And this program is about the role of lighting beyond illumination. To improve well-being, safety and security, food production and access to solar lighting. And it's all about lowering our emissions through energy efficiency and it's about advancing circularity as well. It serves our customers by helping them to reduce energy and resources. and lower costs and adhere to regulations, particularly in Europe. It serves society with lighting that respects nature and reduces emissions as we maintain our commitment to reach net zero emissions by 2040 as a company. And also important is it serves our investors because all this sustainability product offering make good business sense. They work economically. Now with that, I'll hand it over to Zelco. We will take you through our financial performance of the quarter.