AB Fagerhult (publ.)

Welcome to the presentation of Fogelut Group's first quarter results for 2024. My name is Magnus Heigermeyer and I am the head of Merchants and Acquisitions here at Fogelut Group. On the call today we have our president and CEO, Bode Sonnason and our CFO Michael Wood. The presentation will start with Bode giving us a brief update of our results for the first quarter. Bode will then continue to update us on some strategic highlights and innovations launched during the quarter. After that Michael will follow up with more details about the performance of the group and Bode will conclude with a brief recap and afterwards we will open up for questions. We will first allow questions from the conference call, then we will allow for questions from the webcast. You can post questions in the chat window on your screen and I will read them to Bode and Michael. Before we start, let me also remind you that today's session is recorded and will be available on our website later today. With that, I hand over to you Bode. Please go ahead.

Okay, thank you Magnus and welcome everyone to this Q1 2024 webcast. So the first quarter was a good quarter for us and the third strongest in net sales that we have ever delivered. We continue to see megatrends supporting our strategy with updated EU directives with regards to the so-called European energy performance of building directives, where an update would be voted in parliament in March. I'll give you a brief update on this and of course the main goal of all these directives is to renovate Europe. And this is very much in line with our focus on renovation and retrofit, where we see continued development and we expect that this will increase as awareness raises and legislation becomes national. New build activity remains subdued, although we see some positive signs and a big variation in geographic areas. Also confirming this is that we had a solid order intake growth in both collection and premium business areas. Professional infrastructure had tough comparative numbers from last year, where Q1 2023 was a combined 26% higher than the annual quarterly average. We also saw positive development of gross profit margin in all of our four business areas. The focus remained pricing management and now also turns to material cost reductions. Innovation activities with launch of circular products remains high and I will present you an example today from Atelier Ligtheim called the Super Duper Tube, which is a truly sustainable product and even compostable. The base material and the product housing is hemp. We've also published our sustainability report during the quarter and we continue to make progress and we reduce carbon emissions overall including both scope one, two and three in 2023 with 24% compared to baseline year being 2021. And we have reduced scope one and two since our baseline year with 39%. As an example on the scope one and two we have increased our use of renewable energy to 75% in our own operations. We have increased the solar park at the E. gusini factory in Reconati to 10,500 solar and that cover approximately 55% of our own energy needs at the site. So let's have a brief look at the numbers. And order intake in Q1 was 2.1 billion Swedish crowners, which represents an organic decline of 3.3%. The two main reasons for the decline is related to that we had big projects in the same quarter last year and the Easter effect that slowed down the order intake at the end of the quarter. We've seen the levels coming back at the beginning of April in a good way. The net sales declined with .2% and in numbers we achieved 2 billion 180 Swedish crowners. And in EBIT numbers we delivered 220 million Swedish crowners with a 10.1 EBIT margin and earnings per share was 0.78 Swedish crowners and in the first quarter still impacted by the financial cost and we expect this being neutral going forward. So in our quarter reporting every quarter as you know we give a flavor of our strategic group focus areas and today's focus will be on different parts of our sustainability agenda and as you know this is an integral part of our business strategy. When sustainability and business goes hand in hand it becomes a win-win situation and gives a very clear direction for the world. So this time I will give you an update how the regulation in Europe continues to evolve and is supportive to our strategic direction in the aspects of renovation and smart lighting. I will also give an understanding of how the EU taxonomy works with regards to the lighting industry and I will mention a few of the renovation and refurbishment business models we work within the different brands with the goal of taking us towards circular business models. I will end by presenting another great example of sustainable innovation in the group and this time from Atelier Lykta. And as you know we have a global presence with our 12 lighting brands and 2 smart lighting brands. So we cover almost all professional lighting markets with sales into 10 professional customer segments or application areas as we call them. Everything from office, critical infrastructure, urban spaces, hospitality, culture, etc. So we mentioned briefly in the last webcast call the EU energy performance of building that was published in December 2023 and its goal is to promote improvement of the energy performance of buildings within the EU to reach net zero by 2050. And member states must incorporate these changes into their national legislation not later than spring 2026. It is up to each EU country to make a national transition in line with the directive or sooner. And if we look at the buildings in Europe it is the single largest energy consumer and it is 85 of EU's non-residential buildings were built before year 2000 and that is around 220 million buildings and among these 75 have a poor energy performance. So acting on the energy efficiency of building is therefore key to saving energy and achieving a serious mission and a fully decarbonised building stock by 2050 particularly for the worst performing buildings in each country. And this time what is new in this directive that we haven't seen before is that EU is particularly pointing at smart lighting to be part of the solution. For example the directive says light should communicate with relevant connected technical building systems. And this was voted in the parliament on the 12th of March and that means it is both approved in parliament and in the EU council. And the updated mandate calculates and reports buildings carbon footprint and it is a significant expansion from the former directive. So it starts with buildings exceeding 1000 square metres in 2028 and includes all buildings in 2030. So it includes zero emission targets for new buildings and there is a lot of different initiatives in renovation as well. So the next step is publication in the official journal and then it enters into force and as I said national legislation at the latest in spring 2026. So we have we've spoken about this before here we mentioned a few. So we have launched several renovation and refurbishment concepts around the group to develop our circular business model and it's perfect in line with this new European legislation. So we renew, we reuse and rebuild existing lighting solutions and then we always add smart lighting to optimise energy efficiency, decrease carbon and get use of the latest lighting technology. So we have an advantage with our local presence close to the customer and we have an effective low carbon footprint production which is experienced to work with customer specific solutions which is crucial in renovation. So on the slide you can see examples from four of the different brands. The first one is called Second Life from Atelier Lyckten. They work with the outer frame and most of the components are preserved but the inside is filled with new technology. And in Whitecroft the renovation concept is called Vitality Realize and Whitecroft is focusing on the EUCUM market and the numbers in the UK and legislation is very similar to Europe. And Fargaholz the concept is called Refurbish and when refurbishing we always make sure that we install smart lighting from organic response to optimise the energy efficiency. In addition to renovation we also do so called retrofit where we keep the housing and only change the electrical electronic components inside. For example the Science Plan is doing a lot of this as their customers often operate in an environment where renovation is time critical like train stations or prisons. The different concept for us is also a way to educate the customer so that they know that it's possible to renovate their lighting solutions for better energy optimisation and carbon footprint and we can see that this is gaining traction. So let's look at the exciting topic of the EU taxonomy. So we have looked at the explanation behind our taxonomy numbers and what makes the revenue aligned or not. And we have a high part which is eligible 86% which is normal being part of the energy sector. We can be aligned in two ways either by being part of the highest energy classes A or B or as a second alternative using smart lighting. And in 2023 we were aligned to .2% up from 5% the year before which is mainly thanks to increase in our sales of smart lighting. So with regards to energy classes from A to G we have an industry view as it's measured in what's called EPREL which is a large database set up and operated by the European Commission aimed at making information about the energy performance of the different models of household appliances. So the same mechanism as we all know from our dishwashers or our washing machines. And in the EPREL database the measure is not lighting solutions but the light source. And just over 1% of all light sources are in the top two energy classes A and B. That means that the share of sustainable or aligned turnover is low in industry which also applies to us. If you instead look at our split in the different energy classes this is the picture you get. So Farberhoof Group has a favourable breakdown in the other energy classes C to G compared to the industry light source market as you can see on the slide which indicates that our solutions are generally more energy efficient than the market average. But integrated motion and daylight controls are one of the aligned criteria. So our interpretation here as you know is very simple and direct. We are aiming towards 100% implementation of sensors in all our luminaires by 2030 which will gradually drive our alignment in the taxonomy and more importantly drive towards smart lighting solutions that contribute to 90% energy efficiency. And we of course also work with improving the energy classes but there are many factors to take into consideration when doing this. Solutions in energy class A and B are difficult to achieve with the technologies that are on the market today. And this is mainly because of the energy labelling is based on the light output from the lead chip itself and it's simply a matter of amount of light. And to do good lighting quality there are many other parameters that are important like distribution of light, avoiding glare, in addition we consider product lifetime, we consider colour rendering and colour temperature and all of this together make an agreeable light quality for all of us. If we would use class A in our lighting you'd get a very cold, white, bright light. If you want a better, more comfortable light for us as users you lose a little bit in energy efficiency and therefore in energy class. So very few lead chips used by professional lighting manufacturers are for the time being available in class A and B. So for us taxonomy is in one aspect but only one aspect. It does not consider all sustainability topics or very importantly the quality of light to the user. So I hope that gave you a little bit of the overview to understand taxonomy from the lighting industry because I know you need to understand it in many different industries. So with that I'll move to a sustainable product that I mentioned and I'm very proud to present it. It's a new product called the Super Duper Tube and you can see it on the picture and I would call it, this is more than an evolution of our classic luminaire which was called the Super Tube. The Super Duper Tube represents in many, many ways our commitment to sustainable and material exploration. Just as the Super Tube in the 70s was ground breaking for its time the Super Duper Tube is a tool for navigating towards a circular economy. We developed it together with the Norwegian architectural firm Snøhetta and we have refined every aspect of the product from design to manufacturing to minimize its environmental footprint. And we have carefully considered every step in the life cycle from more materials to recycling. And the Super Duper Tube represents a collaboration between sustainability and technological innovation. The main profile and lead profile are made of extruded bio-based polymer where the gables, grids and suspension are made of injection molded bio-based polymer and the base material of the product is hemp. The luminaire housing has a 73% lower carbon footprint to compare to an equivalent in aluminium and of course it includes organic response sensors. For those of you who have a design interest you will find much more information and science in media and on Atelier Lyktan websites you can read about the discovery journey of finding the correct materials and much a movie of the full process of the development process. So with a picture this time from the Philharmonie underground station in Essen that has been renovated with lighting from Viet I will hand over to Michael and his thorough financial inputs.

Good morning. Thank you Bode and a very good morning to all our guests from me as well. The group closed out 2023 in a good way and we have started 2024 also in a good and strong way. Confidence remains high across the Fargo group. The impact from the Easter period was unfortunately early in the year as it disturbed the comparables with 2023 and those comparables as Bode has already mentioned were high to start off with. Despite the Easter impact we were pleased with organic order intake growth in our two largest business areas collection and premium and the value of large projects in the prior year Q1 in both professional and infrastructure proved difficult to overcome. Let us see what the second quarter brings without an impact from Easter in the current year. The high comparable numbers from Q1 last year included the final five to six weeks of the supply chain correction and order backlog catch up but on saying that the net sales of almost 2.2 billion is a strong result and is the group's third highest ever quarter. It was only beaten in Q4 2022 and Q1 2023 which included the more than 500 million SEC order backlog catch up. We see a shortening of customer lead time expectations and therefore the impact on placement of orders in a good way. The group has strong ability to deliver on shorter lead times to meet these customer expectations and our decentralized operating model performs well. The opportunities for growth and renovation and retrofit remain larger than the somewhat subdued new build activity. However, on a positive note in the new build activity market we do see some early positive signs so perhaps the market has now passed the low point in this segment. The group's brands continue to respond very well to the previously reported cost pressures in the supply chain and we have continued gross margin development as Burdell says in all four business areas. Actions remain high and in focus on intelligent pricing, smart portfolio decisions and product mix management. Looking forward we shall continue our focus here. The operating profit of 220 million delivers a strong .1% margin and is in fact the second highest Q1 operating margin in the last six years. Q1 2023 was obviously boosted by the higher net sales. The impact of higher interest expenses begins to neutralize and even reduce as the drop to net profit improves versus 2023. On the interest expense side we continue our focus on cash flow and net debt reduction and so we expect the interest expense to be somewhat lower in 2024. Looking at the longer term development of sales it is clear here to see the order backlog catch up period in the middle right hand side of the chart and we are pleased with the sales growth over the longer term as shown by the chart looking from the very left hand side to the very right hand side. The rolling 12 month net sales remains above 8.5 billion and we look to develop this further in coming years both organically and through M&A. The margin development, the first quarter operating margin develops well as commented above. In fact 2024 is the first time here you see a double digit operating margin in the first quarter and this is mainly as a result of intelligent pricing and portfolio management. The group is consistently delivering 10% or higher operating margin for more than the last three years and as a reminder this is a clean and unadjusted number. It shows the robustness of the group to adapt to change, it shows the decentralized operating model to be ideally suited for a world full of challenges and it shows that we do move at a good speed. Coming to collection, business area collection has developed order and take well in the last nine months with almost 3% organic growth in the first quarter adding to the .3% growth in the second half of 2023. However, that is not the whole story I would like to report. We also see a record level operating margin in the first quarter at 10.7%. The gross profit margin continued to develop well with a positive impact at the operating margin. As you can see we continue to demonstrate our portfolio reach by winning some great projects. Turning to premium, business area premium continues its steady growth trend or organic order intake growth was also almost 3% in the quarter. Net sales dipped a little bit due to the Easter impact and a slightly less demand for deliveries from customers on some existing projects and this dip had a little bit of an impact on the operating margin and we continue to invest. Remember business area premium hosts the organic response smart lighting technology business where smart lighting investments remain at a good level. At almost 13% however, margins remain at the high end of the performance level. The business area has the highest share of net sales in smart lighting approaching almost 15% and this grows well since last year. Coming to professional, in the first quarter of 2023 the business area secured over 100 million, 101 million in fact of three very large projects. So the comparables was always going to be tough. The business area is steadily returning to higher operating margins and of course seasonality plays a part in this business area where all of the three businesses operate almost entirely in their country of residence. The first quarter operating margin at 7.1 compares very favourably to the .7% from last year and there is room for further development here. R-Lite's factory relocation that we reported on last time has been completed. This had a little bit of an impact on the lower sales levels from our Turkish based business in Q1 but the order intake is significantly ahead in R-Lite and the order backlog is at a good position and we expect a much improved Q2 for R-Lite. All three businesses are heavily engaged in winning projects with a strong energy renovation smart lighting theme and the projects that you see mentioned here are just two examples of this in the quarter. Lastly on the business area, a slight detail, we come to infrastructure. The business area infrastructure, we see a little softening of the demand in the distribution and warehousing segments at the moment. We do consider this a short term situation because the enquiry and quotation level does remain quite high. The work on specification activities in the German railway segment makes good progress with design plan and here you can see the securing of the programme for a large railway station roof roll out programme converting to LED. At Vaco, we do really look forward to the receipt of the orders and the delivery of 334 kilometres of lighting where we have been specified. Cash flow, during the quarter the cash flow continued to be positive making eight successive quarters of positive operating cash flow. We continue to carry a lower net debt and the net debt EBDA ratio is just over 1.8. Net debt development including the impact of IRF-S16 which is 735 million, we do report a lower net debt of 2467 million and a net debt EBDA ratio of 1.86. Adjusting to IRF-S16, the net debt is of course still lower at now 1.7 billion on an old money type of basis. The strong positive trend is clear to see and the good work and focus on working capital management and cash generator activities will continue and we do expect to put our cash to good use. The second quarter of course we'll see the payout of the dividend. We come to earnings per share. The EPS earnings per share continues to be impacted by the higher interest expense but as previously commented the impact is now becoming neutralised and we expect lower levels of interest expense in coming quarters with the lower net debt. We continue to take mitigation steps for 2024 and beyond with a strong focus on cash generation and loan portfolio management. Before handing back to Bode for closing comments and Q&A session, just a short summary message from myself. For many reasons we do and we continue with a good start to 2024 and we're in a good strong position. The Easter impact was unfortunate but we continued the order in tech growth in our two largest business areas. Both growth and net margins continue to develop well and we have a clear strategic focus. Thank you for listening and with that I hand back to Bode.

Okay, for a quick conclusion and recap for first quarter of 2024, well I'll say it was a good performance in the quarter with high comparables from last year. We showed good order intake in our two biggest business areas with strong margins in all business areas and healthy operational margins. We delivered a record high margin in business area collections and strong recovery in professionals. Today we are focused on the sustainability topic as we continue to see the renovation trend strengthen and that's a high interest for smart lighting which is balancing the fact that new build activities still remain subdued but with large geographical variations. We see that the renovation trend will continue to become stronger because of the big need to renovate Europe and also supported by stronger stricter goals in the European building project. We are well-sufficient with regards to the market trends and we will continue step by step to work towards our ambition. So just before we go to questions we like to end with some culture and I think this beautiful picture is the Whispering Gallery in St Paul's Cathedral in London which I hope many of you have visited. So this Baroque masterpiece by architect Sir Christopher Wren which we all know were installed with products from Iguzini. This is the first phase of a program to modernize St Paul's interior lighting that was originally installed 25 years ago for a different type of renovation program. This main product is the Iguzini Palco and an extra safety feature added to the gallery is a series of Iguzini custom-made hidden emergency lights that can be used to provide low level of lighting to the floor of the gallery and highlight the exit doors in an emergency all to keep the beauty of this place.

Thank you Borel. With that we ask the operators to open for questions from those on the telephone line.

If you wish to ask a question please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question please dial pound key 6 on your telephone keypad. The next question comes from Mats Liss from Kepler Chuvriaks. Please go ahead.

Yeah hi thank you for taking my questions first. A couple of questions. First well you mentioned the energy efficient building procurement in Europe I guess and that will be sort of a final approval there on the local level in 2026 at the latest but what do you see for market demand and momentum well up until then and maybe afterwards is it sort of something that will keep the market on a lower level or are sort of well customers already

see

this coming and they have started to make the renovation and the investments needed to a full extent. If you could give some flavor there I mean how much do you see the opportunities of a growing market?

Yes I mean it's of course 26 years away but I think that is when everything needs to be ready and if you look at the targets I mean we haven't seen as clear targets for renovation before there are very clear deadlines on it so even if they need to implement it in national legislation they can't do something which is lower than what the EU is saying. I think if there are deadlines for 2030 which is 16 percent renovation rate of these of all these buildings and in 2033 26 percent so it is very ambitious what is coming out of the EU and I think what we see where then there is the discussion it's not finalized yet we also see that I think for the first time they're speaking more about how is this going to be financed so they're also looking into solutions for financing for renovation which there has been less of before so I think we will see this evolve in the coming quarters to see what impact that will have but I think that the target is very very clear and then if you ask what we see I would say that we see a gradual awareness increasing into the market so we see as we come that's also as I said when you look into our different models that we're using for renovation the different concepts we have that's also increasing the awareness from the customers so they start to ask about it and we see those pretensions in those different initiatives I would say steadily increase so we see the trend that's very clear of course it's difficult to see how quick will this be impacted by local initiatives but the trend is very very clear I would say seed is always difficult to judge

and do you feel that sorry

yeah go ahead

yeah and do you do sort of have the offering in place already or do you see that you need to sort of add something or do something different to adapt to these demands

no I think that in in many many businesses we are very well prepared I would say that's what I said we have our local fund put being close to the customers and also having production units that are used to do I don't know if you remember we used to say 40 percent of our customer demands are bespoke meaning done to customers specific customer demands and that fits very well with renovation because it's individual solutions very often I think we are very very well prepared for that and you also know that I mean we have had 100 led since a long time so we have only been driving the led message for for quite a few years and I think that's another strong point and then also the the strong focus on smart lighting I mean we've been doing this for a few years and of course there will be new things added to that as a continuous development but I would say we have nothing today that hinder us from doing full renovation solutions whatever it is

great thank you another one is well regarding orders I mean you fell slightly behind last year but I guess you also had some extra opportunities there as it seems in infrastructure the vehicle 34 km could

you

say something about well how much that could end up

being yeah I am in a quick answer to your question of how much is 34 kilometers of lighting Matt no I can't I can't say what the value of that is but we do know it's a hell of a lot of lighting and we have secured the contract for the 34 kilometers of lighting with the very first part of that contract being received as order intake so far so we look forward to the rest of the order intake coming through Vaco is a particular business where they supply lines of light and 34 kilometers is a long line of light it's not all one line of course but but it's a substantial quantity and it is to be fitted with smart lighting so we look forward to receiving the balance of the orders they will come progressively through time so we look forward to receiving the balance of the orders and manufacturing and supplying accordingly but what 34 kilometers of lighting looks like you can only picture it in a highway sort of sense and then try to put a value to that is will be a challenge maybe the boys and people from Vaco will know what 34 kilometers of lighting is valued at but but it's not something that I can recall from the top of my head

Okay great and I guess this is some sort of well first first type of orders in well that looks like this or are there more to come in in other parts of Europe I guess or in Holland or whatever

yeah I mean I mean lines of light is what Vaco do they light up the big long passageways in distribution warehouses and logistics warehouses and you can see many many of these buildings being erected in all sorts of different places in Europe you only need to drive on motorways in any of our countries and they are popping up all over the show and they are simply ginormous buildings and each one of those will need to be lit sustainably and therefore good value for money lighting with smart lighting technology so they're not permanently lit for when when the operators are not there working is what we supply from Vaco

and can you say something about competition in this segment yeah

we're not we're not alone you know there's many of our peer group across Europe do have similar solutions we just need to position ourselves better and more smartly with the customer base but but many of the smaller to medium and larger players here in Europe do have lines of light that do compete with the Vaco offering as we just need to be better and we need to provide better customer service and better customer satisfaction

okay okay great thank you and and just finally but i mean well you mentioned that this was some sort of well it was a tough comparison area due to to the reasons you mentioned with the easing of supply chains and backlog delivery in the comparison quarter but then again it's a very strong first quarter and then it's normally a seasonally slower quarter for you should they expect the coming quarters to be seasonally well improving yes as expected or yes as they have historically

i think that when you look at we try to answer it does mean michael but i think when you look into seasonality the last few years have been have had so many different factors to it it's been more difficult to look at seasonality because i think last year i think it was the last delivery out of the supply chain side as well which i haven't spoken so much about because that's ended q1 last year then in in the past when you look at it we had we also had the indoor outdoor side of things i think we have a more balanced view on that now because we are selling both in the northern and the southern hemisphere so i would say that it's difficult to compare when you look a few years back is there a seasonal effect maybe slightly but not much i would say

yeah i mean we're spreading our footprint maps across northern hemisphere southern hemisphere as bozal says and across the 10 application areas and across indoor and outdoor we've sort of like taken almost like an insurance policy against the the steep peaks and troughs of seasonality that we used to have and and if you do reflect on some of the comments that we've made in the last maybe eight or ten quarter reports the last two years have been difficult to make straightforward comparisons because of the supply chain impact on orders coming in where you know we've reported at the start of that period orders coming in very early so we could get ourselves ready to make and deliver and then in the latter part of that period we've been comparing ourselves to to a very turbulent period of supply chain orders and supply chain correction with net sales so i would i would look at the last maybe two years and say it doesn't really exhibit a normal pattern of seasonality but fingers crossed the the order backlog period is behind us now it was it closed out in q1 2023 as a comparable sorry q1 2024 so as we move now forward into q2 we can hopefully return to a little bit more visibility on on what is the seasonality pattern here at fargo group

okay great thank you very much

thank you much

there are no more questions from the phones at this time so i hand the conference back to the speakers for any written questions and closing comments

thank you very much max we have some written questions sent in to us as well we started with the easter effect we had some comments here on that one you speak about the easter effect so how has april started you

know we normally never say anything about the future in that sense but i think i said it already and that's why we speak about the easter effects so i think we after coming back you can see a difference when and you don't have easter in april that the months have started well for us so i think that's positive

all right moving on to any new written question here i can see that you are positive about the margin in collection business area do you see that continue

i mean if we were very happy about the first quarter in collection as michael said before and i think that's the strength from the business area and we also saw that they've had good order intake for some quarters now and also in q1 so for me there is no reason that that shouldn't continue we remain positive with regards to to collection

all right maybe next one here from michael perhaps you have talked about putting surplus cash to good use can you comment on this

yeah somehow i might detect that might have come from you that question magna as head of mna however yeah we do talk about putting our surplus cash balances to good use and that good use will be balanced and about opportunities on the mna front but also if those opportunities are a little bit staggered in terms of timing then we will look to do more amortization of our longer term loans so we will put them to good use it just depends the timing of the various opportunities we have out there compared to the ongoing level of of debt within our loan portfolio we certainly won't just sit with surplus cash and do nothing with it

right and and moving on to the next one here maybe referring a little bit to that one here from a listener your mna interest seems to be picking up what type of company right in next fire

well it'll be a lighting company or a lighting technology company we have a we have a good process now with the with magnus who joined us in september of last year i think we introduced the name magnus and his new role on the last call so we're busy with our funnel and our pipeline of activity and in this area screening lots of opportunities narrowing it down to to less than lots and then be now beginning to engage with some very early conversations of course i'm not going to and i'm not permitted to say any names but we have some areas of the globe where we wish to have more representation and we have some product portfolio areas that would be good as complementary to our other brands and of course if there's another smart lighting brand that would complement our solutions in in areas where organic response and city grid doesn't operate then of course we would be interested there as well

okay thank you so let's see we have another one here what what is the this is about the the hemp luminaire super duper tube what is the price premium on innovative products such as this one the super duper tube and others

if we look into the price stream i think first of all i mean we are a premium company what we're doing in general i don't have the exact pricing levels in terms of the super duper tube i think what is positive there i think from when you look at this specific product this is not a niche product this is a volume product which i think is also important because it's going out we should be able to do big volumes of this one and we see also we have early high interest for it

so

when you do new sustainable products i don't think you should do anything that can be used in very small applications if we want an impact on it we need to do things that we can have we can have a much larger scale one and i think super duper tube is one of those

okay and maybe a little bit connected to this one you you showed a slide in which housing stays in place while lights swap out

can

clarify the extent to which you're offering this across your lines

i mean this is an example in the four different you saw the four different concepts from the four different business areas they all have that's one part of that so i think this is something we have i don't know the percentage of it in all our businesses but it it is something going in line with the renovation trend so we have this in a high amount of our businesses that they all can do this for their specific segments then there be as we said there might be different ways of doing it if you're doing it in a transportation solution or if you're doing it in an office an office very often you go in and say maybe i change this i keep this i retrofit this often it's it's also the consulting part of it that we have as a knowledge within the group where we will help the customers to say what is the best solution

for them the the retrofit topic is is particularly important where as bogan mentioned in her slides at this point where there is a time element to access to the space to work within the space so that that is a particularly relevant aspect to retrofit but also where the housings for the luminaire are fairly substantial and that's why it's not a surprise that our business design plan in the south of the uk has developed this retrofit proposition because design plan luminaires on railway stations and or prison cells and and custodial areas they are fairly chunky fairly heavy industrial based luminaires that need to be fitted securely into the space and so the retrofit proposition is is very suitable to to those application areas

okay thank you and with that we are done with questions for today before we end modus any last comments from your side

yes i think i have a last comment for you i think that it's been a good set of numbers that we delivered in the first quarter and at the same time we are progressing in all our strategic initiatives being sustainable smart lighting and talent and i also see a very well position when the external macroeconomic landscape puts focus on changing our buildings to become more sustainable and smart so coming back to the innovation side so i think we have a very natural role to play to help renovating europe and we are really well prepared for that so that means that we continue to see many opportunities and that makes me confident for the future

thank you everyone for for joining today's conference call next we will publish our q2 results on july 19 2024 and we will host a webcast on the same dates

yeah

have a nice day

it's important to mention because we didn't last year so we've added the this year okay thank you everybody thank you