Fagerhult Group AB

So good morning, everyone. Before we start this webcast, I would like to take a moment to address Q1 directly, because I believe it is important that we are transparent with you what happened and where we stand. So the quarter came in weaker than we expected, and we take that very seriously. The period was affected by a combination of factors. Geopolitical uncertainty impacted both directly and indirectly, with, for example, extended decision-making timelines in several markets. Also, the stronger Swedish krona negatively impacted net sales, and the sales mix between our business areas weighed on gross margin. What does give us confidence is that our order backlog has increased compared with the same period last year. Underlying demand for our products and solutions remain stable, reflecting continued customer need and activity across our key markets. At the same time, we see significant differences between segment and geographies. We have also an ongoing strategic update for the period of 26 to 29, which predated this quarter and was initiated as part of our longer term work to strengthen profitability and stability. We will communicate the direction of this strategic work no later than in connection with the Q2 report. In the meantime, we are taking action, but we want to provide a complete and coherent picture once the process is finalized. We will also, at the end of this section, leave a little bit more time than normally so that you are able to ask any questions that you might have.

Thank you very much Bodil and thank you all for joining us today. I'm Niklas Willstrand and I'm head of communications here at Faguhut Group and it's my pleasure to welcome you to our Q1 2026 results presentation. With us today we have as you already know our president and CEO Bodil Sonneson and our CFO Oskar Wallsten. Bodil will begin with a brief overview of the first quarter results, followed by a short highlight focusing on the energy performance of buildings directive, the EPBD. Oskar will then provide a deeper dive into the group's financial performance. To conclude, Bodil will summarize the key takeaways before we open up the floor for questions. We will first take questions from the conference call participants, followed by questions from the webcast. You can submit your questions via the chat window on your screen, and I will read them aloud for Bodil and Oskar. If you want to ask telephone questions, please press pound key five. Please note that today's session is being recorded and will be available on our website later today. So with that, I will hand over to you, Bodil.

Thank you very much, Nicholas, and welcome again. And so, as I mentioned in my introduction, the performance in the first quarter was below our expectations. Results were impacted by a continued weak construction market that you all know about and that we have been reporting consequently on. And so far, we haven't seen any changes in that. In addition, we had an unfavorable sales mix. We had currency headwinds and a challenging operating environment with the geopolitical situation. In response, the strategic overview has been accelerated with focus on address underlying issues, strengthen the stability, tightening cost control further, and supporting sales growth also very importantly. At the same time, new market drivers are emerging. Therefore, also, we see the need for a little bit of a change in strategic direction. Some of those are including segments like defence, infrastructure, data centres, and I will speak a little bit more about the legal side today, being European performance of building directives. To position the group accordingly, a more unified market strategy is being implemented to reduce complexity and improve efficiency. By reducing complexity and sharpening our geographic focus, we can improve efficiency, strengthen profitability and reinforce our position as one of Europe's leading player. So if we then look at the concrete numbers for Q1, order intake in the first quarter totaled 1,969 million Swedish crowns, corresponding to an organic decline of 14.6% or 11.6% before adjustments. The decline was mainly related to collection, where last year's figures were boosted by one of order linked to the King Salomon project in Saudi Arabia. Premium also had a particularly strong order intake last year, driven by the West Lincoln project. Net sales in the first quarter was, as I said already, impacted by a less favorable sales mix with lower volumes in higher margin segments such as collection and premium. Importantly, gross margins within both collection and premium remained stable. However, lower sales volumes in these higher margin businesses had a negative effect on the group's overall margin. And as a result, net sales declined by 6.1% to 1,821 million Swedish grand or 8.8% adjusted for currency effects and acquisitions. Overall, the group's EBITDA before EACs was 44 million Swedish crowns, and we had no EACs in the quarter. That's a decrease of 72.9% with an EBITDA margin before EAC of 2.4%. And earnings per share before EAC was a negative 0.16%. Despite lower order intake, the order backlog increased to 1,803 million Swedish crowns, mainly driven by higher orders in the business area professional. And once again, we are not satisfied with the outcome and the level of performance delivered. And we will come back to you with more information. Oskar will provide that to you as always in the financial section. And as I said, I'll give you a little bit more update of the EPBD or the European Performance of Building Directives. And that I choose to do that today is because this comes into mandate in national legislation from this month. And I think most of you are familiar with EPBD. I think we'll take a moment to reflect upon what it means in practice. So, as you know, building accounts for a significant share of Europe's energy consumption and around 40% of its CO2 emissions. Yet for decades, improvements in this area have largely relied on voluntary measures. And the European Commission adopted the EPPD two years ago with national implementation required by May 2026 at the latest. So that's where we're coming to. And EPPD changes the game by introducing binding targets fixed deadlines and legal consequences for non-compliance. And this shift from voluntary to mandatory action is what makes this particularly relevant for us. And it is expected to accelerate renovation demand. And I don't know if we've talked about before that we are renovating approximately 1% of the buildings in Europe. And in order to be able to achieve our targets, we need to renovate at least 3%. And for us, the renovation market is very important. So the... When we look into the deadlines and the structural market expansion, so Europe faces 149 billion annual funding gap to meet these targets. And that gap creates urgent structural demand for high efficiency technology. And that demand is non-discretionary. So regulatory frameworks have made energy efficiency a legal necessity for asset survival, not a voluntary upgrade. And that transition is already underway. But many European buildings have yet to complete the shift to LED and the phase out of fluorescent lighting creates for us a predictable multi-year replacement pipeline across the continent. The deadlines are fixed, and these deadlines are related to energy efficiency, but also more details of what they need to entail. And this is in public buildings by 2028 and private new buildings by 2030. So that gives us more of a long-term visibility. And this is a structural market shift, and I think we are very well positioned to benefit from it. So why is this? First, we have wireless solutions and that makes the installation much easier. So by simplifying design and eliminating wiring, we can deliver faster installations at lower costs. That means more project for our installers and less interruption time for the tenants, which suits the retrofit market. Second, lighting is becoming digital infrastructure. Sensors and real-time data turn on luminaires into connected data points within the building management system. That opens the door to recurring revenues beyond the hardware sale and support premium positioning. third is system integration when we connect to central building system we shift from being a product supplier to system partner and that means higher contract values per project and stronger longer term customer relationship and also a much higher value for the building and lower costs for the tenant So organic response is where it comes together. Sensors in every luminaire, as you know, is our goal. Automatic compliance reporting and open API for integration with other building system and customized reporting. The renovation wave creates real and predictable demand across Europe. And what matters is that our portfolio is built exactly for this moment. So wireless installations, connected luminaires, system integrators. And this is not something which is part of our future roadmap. They are products and capabilities we have today in a market that now requires them. So that was my short update on the EPBD. And with that, I will hand over to Oscar for more information on the financial numbers.