Zumtobel Group Stock

Welcome, ladies and gentlemen, to the earnings call of Zumtobel Group on Q1 2026-'27. I would like to welcome the company's CEO, Alfred Felder; designated CEO, Heiner Lang; CFO, Thomas Erath; and Head of Investor Relations, Eric Schmiedchen. The gentlemen will guide you through the figures in a moment, followed by a Q&A session via audio line.

And with that, I hand over to you, Mr. Schmiedchen.

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.

[Operator Instructions] And we have the first question coming in from Patrick Steiner.

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.

And we will move on to the questions from Michael Marschallinger.

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.

[Operator Instructions] This is the stage for you, Mr. Sartori.

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.

And we'll move back to Michael Marschallinger for some follow-up.

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.

Ladies and gentlemen, I will hold the room another moment in case there should be any questions left.

And with that, I will wrap up the call with a message coming in, in the Q&A from [ Marc ] and [ John Webb ]. Well done, Alfred, for your good work on the streamline of the company, which has enabled Zumtobel to improve profitability despite weak end markets, a positive legacy congrats.

And with that, we have come to the end of today's earnings call. Thank you very much for your interest in Zumtobel Group. A big thank you also to the Management Board for your presentation and your time. Should you have any further questions at a later date, ladies and gentlemen, please feel free to contact Investor Relations, Eric Schmiedchen. I wish you all a successful day and handing back over to you, Alfred, once again for your closing remarks.

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.

Ladies and gentlemen, welcome to the earnings call of Zumtobel Group on the Q4 and full year 2025 and 2026 numbers. I would like to welcome the company's CEO, Alfred Felder; CFO, Thomas Erath; and Head of Investor Relations, Dr. Eric Schmiedchen. The gentlemen will guide you through the figures in a moment, followed by a Q&A session for institutional investors and analysts via the audio line only. There will be time for questions from journalists and retail investors during today's Zumtobel Group roundtable approximately at 3:00 this afternoon.

And with that, I hand over to you, Mr. Schmiedchen.

Thank you. Good morning, ladies and gentlemen, and a warm welcome from my side as well to our figures for the Q4 and full year 2025-'26 results. As said, with me on the call is Alfred Felder, our CEO; and Thomas Erath, our CFO. Alfred will walk you through the highlights of the quarter and the year, while Thomas will discuss the financial performance. After the presentation, both gentlemen will be available to answer your questions. In case you have not a copy of the report and the presentation, you may find both documents for download on our web page. After the call, a playback of this conference call will be available on our web page as well.

And with this, I hand over to Alfred.

Good morning, and welcome, ladies and gentlemen, and thank you for joining us today for this call.

The financial year '25-'26 was again a challenging one for our business. The market conditions and the broader economic environment remains difficult and were further impacted by, as we all know, the geopolitical tensions around the globe. In Europe, however, we began to see early signs of the demand in the new construction, especially during the fourth quarter. And however, the recovery remains modest.

With the ad hoc announcement in July -- on July 1, we already provided some preliminary information on our full year figures. But before we move into the strategy update and the financials, I would like to do, as usual, share with you a couple of highlights what were driving us over the last quarters, including also here, the first one, the Light & Building, where we, in the biggest light fair every 3 years, we have been showcasing with all the 3 brands, an impressive program also according to the feedback of the Zumtobel capabilities. We were able to meet numerous customers, especially a lot of new customers, important conversations and develop new partnerships. And one of this is the collaboration with Legrand. So that's our third partner in the building infrastructure next to ABB and Signify, which we announced.

What you see here in the middle is the APO Bank, a typical refurbishment project where we really gained momentum where it was a renovation package versus the existing products with a lot of control know-how, what made us this as a success. PENNY on the right side is a test pilot. Typically, it's in Austria, where we have been doing a combination of high system efficiency, optimal glare control. So where here, the entire lighting solutions is designed to permanently minimize the energy consumption.

A very iconic project I reported also one and it's now completed is this fish market in Sydney, where, again, the commitment on sustainability, the project minimizes the environmental impact through responsible construction practices and innovative energy solutions. And the roof here is an architectural feature that includes built-in luminaires to provide the special illumination after the sunset. We are very proud that we have been able to contribute here.

And last but not least, a project, the American University in Cairo, Egypt, which was founded in 1919, one of the leading educational institutions in the Middle East. And here, 136 smart classrooms and 200 laboratories on a 7-kilometer campus in 12 building zones have been equipped. And here, Tridonic with a partner was establishing the network with 20 controllers, which precisely control and monitor 1,100 LED escape signs. For this project, Tridonic received the International DALI Award in 2026 in the Best Emergency Lighting integration category.

Let me now give you an overview on our financial performance in the last fiscal year. Thomas, of course, will go and then into the details. We published the group figures in our ad hoc announcement on July 1. And compared with the same period of the previous year, the revenue declined by 5.2% from EUR 1.097 billion to EUR 1.040 billion. If you look at the segment level, the picture is as follows: Lighting segment at EUR 832 million, while the revenues of Components segment amounted to EUR 266 million. The adjusted group EBIT at EUR 42.4 million, which corresponds an adjusted EBIT margin of 4.1%.

Our Lighting segment remained stable in a difficult market environment and further improved its profitability. The Components segment, however, was confronted with the ongoing weakness in construction as well as the increasing pressure, especially from the Far East competition. As explained in our ad hoc announcement, the net profit was significantly affected by considerably higher income taxes compared with the previous year. And here again, Thomas will explain this in more detail later on. And in view of the slightly positive net profit of only EUR 1 million for the entire financial year compared to EUR 15.5 million last year, we and the Management Board recommended to the Supervisory Board and subsequently, we also made this recommendation to the Annual General Meeting not to pay a dividend. It was not an easy decision, but taking all relevant factors into account, we believe it was the right one for us.

Looking forward, our priorities are clear. Our operational excellence, a strategic focus and the profitable growth. And one of our central growth drivers is in the digital transformation of the buildings into energy-efficient, integrated and intelligent infrastructure. This is also, as I explained in one of the last calls, the main reason why we are having these cooperations with the building infrastructure providers such as Legrand, such as ABB and such as Siemens. In addition, legal regulations, stricter energy efficiency standards and the demand for database solutions are sustainably changing our customer requirements. And so we are continuously strengthening our position in this market with our intelligent lighting solutions.

On this slide here, you see how we in the Zumtobel Group are responding to the structural changes in our market and how this strategy is already reflected in tangible customer solutions. The bigger picture, these 5 trends are reshaping our industry from -- moving from product to solutions, including the sustainability, including the connected and the data. And we're all witnessing this fundamental shift also from our customers who are more and more not asking products anymore, but complete solutions. So the key message is here, we are moving from products to integrated solutions. And this is not merely an observation, it's a direction which we are evolving our entire portfolio and the complete organization.

And how does it look like in practice? Let me give you some examples. One is the value shift here in the data center sector. Data center, we started to be engaged 5 years ago, and now we are seeing and earning the fruits. Here, we have to deliver more than just the illumination, the lighting solution. We support our customers from the earliest planning stages with specialized lighting design, including solutions that are tailored to the thermally demanding environment of data halls. As you know, this data halls still with all the energy they use to cool this down are still having temperatures up to 40 degrees in there. Our portfolio covers here the entire family from the external areas and the data hall itself, to the technical rooms, the emergency lighting and the office spaces. For us, this is a high-margin, very fast-growing segment in which we are positioning ourselves as a system provider rather than a simple component supplier.

In smart and connected, this transformation is evident in the way buildings are optimized. Using sensor data, we help manage visitor flows, prevent overcrowding and create a data foundation for company-wide standards in the building environment, air quality and lighting. Our lichtMONITOR platform enables facility manager to monitor and control entire lighting installations centrally.

The next page, when it comes to sustainability and well-being, we let our actions speak for themselves. Our continued inclusion of VÖNIX Index as well as -- this year, the EcoVadis Platinum rating, which places us among the top 1% of the companies assessed worldwide, provide independent recognition of our progress.

Product-wise, here, you see an example of the Avenue luminaire, 68% recycled material, completely disassembly for repair and recycling, and 80% recyclability, and a guaranteed maintenance and repair upgrade availability through the entire life cycle. This is circular economy in action, not just as a commitment on paper. With these products, we are advancing sustainability in helping our customers meet their sustainability goal while creating new business model, especially a refurbishment after the first lifetime into a second lifetime and automatically moving from a pure product business into a solution business and potentially with a business model also in a light leasing model.

Considering these key trends reflect the strategic logic underpinning our business, we are systematically evolving our business model here from really selling onetime the products towards a recurring higher-margin revenue stream generated through services, software and also data monetization. And at the same time, our focus on sustainable, long-lasting products and partnerships strengthen the customer loyalty and reinforces our competitive differentiation.

On Slide 8, I would like to provide you an update where we stand with the achievements what we have announced a couple of quarters ago of our efficiency program. As we reported in recent quarters, we have already delivered substantial cost savings. And in total, we realized cost savings of around EUR 16 million for the entire '25-'26 financial year, with roughly EUR 6 million in associated restructuring costs. This then translates into a net impact of around EUR 10 million in the first year.

And let me briefly explain once more the 3 levers. One is the lean organization where especially in the big departments being in sales, we have optimized the footprint, reducing hierarchical layers, and this will continue also in the other departments. Second one, streamlining the processes. This is a continuous effort. One example is in procurement, where we are reducing complexity and increasing automation. This will allow us now to lower spending, improve our transparency and manage our purchasing process more efficiently, and that is now going on in all aspects of our business. And thirdly, the establishment of the Shared Service Centers, two. In Serbia, we have 2 locations, one close to our factory or in our factory in Niš and one in Belgrade for more the international jobs who need international airport nearby and Portugal.

And as previously communicated, here, our objective is to structurally improve our cost position over the next 4 years. And by the year 4, and that's here in the case, '28-'29, we are targeting annual cost savings of EUR 40 million to EUR 50 million and plan to match this level in the following years. Importantly, around 80% of these savings are expected to realize by year 3. Because currently, as you know, we are building this up. We are training the people. And once this is ready, we are transferring this knowledge from high-cost countries to our global business centers.

Obviously, we are fully aware that these steps and measures are not always easy and that they also affect our employees. We take this responsibility very seriously and are supporting the transformation process as carefully and responsible as possible. And as just said, the further development of our business model also required a consistent adjustment of our organization. My colleague, Bernard Motzko, who has served as the Chief Operating Officer at the Zumtobel Group since 2018, will resign from the Management Board and retire by the end of September '26. Going forward, we will reduce the Management Board to 3 members and anchor operational responsibility within the existing business areas. My colleagues and I are convinced that the measures we have introduced and executed will strengthen our company in the future. In this way, we are addressing the current challenges in the market.

Let me give you, before I hand over to Thomas, an update on our Components segment. As I mentioned earlier, this segment has now been under pressure for the third consecutive years. The revenue declined by 11% year-on-year basis and the adjusted EBIT fell to EUR 4.6 million. We have -- we take this development very seriously, and we have acted here on that. As reported over the past few quarters, we carefully evaluated potentially 3 options: selling off the segment, a joint venture with a partner, or a fundamental repositioning under our own steam. And we came to the conclusion that the market is currently not prepared to offer a price reflecting the true value of our business. We have also not found yet a joint venture partner so far with whom we think we can run the combined business and create additional value. So we have, therefore, chosen the third one -- our most value-creating path we are actively rebuilding the Components segment by itself.

Our strategy follows here a clear 3-part approach: keep and stabilizing our core business, the OEM business consisting of LED drivers, sensors and LED modules, extend it in new markets and new applications, so remaining into the Lighting, develop also new business opportunities beyond the light. And that means the following: if we keep and stabilize the core, we are securing our existing core business by rigorously driving cost efficiency. Extending the core, we are pursuing new applications closely related to our existing business. And one concrete example is our RailSignia project, where together with a partner, we aim to refurbish existing signal system from halogen lamp to LED for rail networks with our solutions. And in parallel, we are strengthening our capabilities in and leveraging the control business.

Developing new business opportunities beyond light, we are here identifying new business areas. As you know, one of the core competencies of Tridonic is power electronics. So we are perfect in converting AC to DC in thermal management and especially when it comes to miniaturization for high-end applications. You see here a couple of examples, renewable energy, the general high-power semiconductors, obviously, with data center, with artificial intelligence, energy and energy consumption is exploding. And everything what helps to make this transfer of energy more efficient is saving cost. And here, Tridonic with its competence plays a key role where we engage with data centers with power conversion here. And that is making interesting applications what go beyond the lighting.

We're also addressing this transformation on the leadership level. The previous CEO of the Components segment has left the company and the successor will drive this strategy forward, as I just have outlined. We will keep you updated as this project has started a couple of weeks back and latest with the results presented in December. I'm very confident that this clear road map will put the Components segment on sound and future-proof footing with an increased volume and margins.

And with that, I would now like to hand over to Thomas, who will take you through the quarter 4 and also the all 4 quarter results in detail.

Thank you, Alfred. Good morning, ladies and gentlemen. Let me start with the Lighting segment. Q4 revenues in the Lighting segment amounted to EUR 213.7 million and were 0.8% above the previous year. Positive volume contributions were recorded in the Americas and MEA region, along with positive growth in the Netherlands and Switzerland. France, Germany, Italy and the U.K. recorded lower volumes as well as a couple of other countries having price pressure in the market. Adjusted EBIT in the Lighting segment increased from EUR 11.4 million to EUR 13.7 million. Our adjusted EBIT margin increased to 6.4%. Lower material costs and a decline in personnel expenses also contributed to the higher result.

Slide 11 shows the Components segment. Revenues in the Components segment declined 8.8% to EUR 66.4 million in the fourth quarter. The difficult economical and geopolitical environment led to declining sales and also still some price pressure. Adjusted EBIT in the Components segment totaled EUR 0.4 million negative in the fourth quarter. The adjusted EBIT margin stood at minus 0.7% Lower material costs and lower personnel expenses were unable to offset the decline in revenues.

Slide 12 shows Q4 results for the group. Revenues in the fourth quarter declined by 1.4% to EUR 265.4 million as a result of the decline in the Components segment. Adjusted EBIT margin increased -- adjusted EBIT increased to EUR 10.2 million, compared with EUR 6 million in the fourth quarter of last year. Adjusted EBIT margin amounted to 3.9%. Overall, lower material costs and lower personnel expenses more than offset the negative impact from declining volumes.

Slide 13. Looking at the adjusted EBIT bridge, we start with prior year's result of EUR 46.9 million. The negative revenue impact totaled EUR 44 million with the decline primarily caused by price pressure, volume reductions and to a lesser extent, FX. Looking at our COGS, lower material costs and lower personnel expenses had a positive impact of EUR 32.4 million. SG&A made a positive contribution to results, mainly due to lower personnel expenses. As a result, adjusted EBIT decreased to EUR 42.4 million.

Slide 14 provides you with information on our income statement. As I mentioned, our adjusted EBIT stood at EUR 42.4 million. Special effects were negative at EUR 19.3 million. They include restructuring costs mainly in connection with our efficiency program and the closure of U.S. production site in Highland. For individual claims, minus EUR 1.4 million were recorded in the Components segment and minus EUR 0.6 million in the Lighting segment. In addition, the special effects recognized in the Components segment reported in the second quarter include impairment of goodwill, which was EUR 2 million, impairment losses to capitalized development projects, EUR 3.2 million. And on the positive side, an investment premium received from the Portuguese government of EUR 1.4 million.

After the deduction of these special effects, our EBIT totaled EUR 23.1 million. Our financial results amounted to minus EUR 12.4 million and net financing costs amounted to minus EUR 9.8 million. Other financial income and expenses totaled minus EUR 2.5 million and included the interest expense for pension obligations, FX and hedging valuation. Profit before tax totaled EUR 10.7 million versus EUR 16.1 million last year. Income taxes amounted to minus EUR 9.7 million, compared to minus EUR 0.6 million. The year-on-year increase in income taxes resulted primarily from value adjustment to deferred tax assets in the U.S., U.K. and Austria as well as some nonrecurring effects. As a consequence, net profit fell to minus EUR 1 million. Earnings per share equaled EUR 0.03 per share.

Let's move to the next slide, the cash flow statement. Cash flow from operating results fell year-on-year from EUR 86.4 million to EUR 82.6 million, mainly due the decline in sales. The change in other operating items amounted to minus EUR 26.7 million and resulted mainly from the reduction of provisions for pensions and termination benefits and the reduction of restructuring and bonus provision. Cash flow from operating activities stood at EUR 61.8 million versus EUR 72.3 million in the last year. Cash flow from investing activities amounted to minus EUR 45.7 million in the reporting period. As a result, free cash flow equaled EUR 16.2 million versus EUR 19.6 million the year before. Cash flow from financing activities amounted to minus EUR 6.9 million versus minus EUR 37.9 million the year before. The change compared to prior year is primarily related to the increased utilization of the loan from the European Investment Bank and the reduced dividend distribution.

Let me finish with Slide 16 and some comments on our balance sheet. The balance sheet structure remains stable. The equity ratio increased to 43%. Net debt grew in comparison with the last year-end close to EUR 128.5 million. Debt coverage ratio is at 1.56.

And with this, I hand back to Alfred.

Thank you, Thomas. Before turning into our outlook, let me briefly reflect on the latest sector development based on the Euroconstruct data what we received in June. On 2026, the forecast downgrade from Euroconstruct was expected. So the data confirms what we already anticipated in that sense, no surprises to us. For 2027, however, the picture looks much more encouraging. The forecast is stable compared to the last November. So they are always publishing this data in November than in June. And it steadily reflects growing confidence that obviously, the conflict, especially this one in Middle East is moving towards an end. But once that optimization sets in, we expect it will support construction activities across our market. The key headline for today is that the sector is coming out of the recession and the numbers confirm it. The cycle has turned finally.

With the recovery, we expect new build growth will take the lead from 2027 onwards, outpacing the renovation for the first time in several years. But however, the renovation remains a structural pillar, particularly in non-residential construction. Why is this the case? Because environmental requirements have made it nonoptimal. Building owners are not renovating because conditions are favorable. They are renovating because regulations requires it. And that makes this segment resilient, and it will stay that way.

So to sum up, 2026 is anticipated and communicated, '27 will bring stabilization and recovery. New build will lead the growth and renovation will remain anchored by energy transition, meaning the direction is gradually improving even if the pace of the recovery remains moderate.

With this, our strategic priorities remain unchanged. We are focusing on capturing renovation opportunities on one side and positioning the Zumtobel Group to benefit from the anticipated return in non-residential construction. And as the lighting industry typically lags behind the construction side, we are expecting that any sustained market recovery will translate into an increased demand for our solution within a certain time delay.

This brings me now to the outlook for this fiscal year. The overall market environment remains challenged. However, as mentioned in the previous slide, construction activity is expected to pick up. With the measures what we have taken on the efficiency program and we continue to take, we have set a clear course to position our company for sustainable growth and continued innovation. With a focused strategy and decisive execution, we are now responding to the ongoing shifts in our market and creating the foundation for a resilient performance in the years ahead.

On margins, we expect an adjusted EBIT margin of 3% to 5% for the year. And let me here be transparent about what's pulling in each direction. On a positive side, our efficiency program continues to deliver. The contributions are real. They are measurable and they will support the margin improvement going forward. But on the other side, we are facing headwinds we cannot ignore. We see already higher raw material prices, also partly higher prices for semiconductors a sustained price pressure in the market and rising wage costs. And this is not short term nor is it requires active management.

As we outlined earlier, 2026 remains a transition year. The recovery is confirmed, but it's still early. We expect the margin tailwinds from our efficiency work will strengthen as we move into 2027 when new build momentum picks up. Planned CapEx for the year amounts to approximately EUR 50 million.

And with that, we are closing our presentation, and Thomas and myself are now ready to take your questions. Thank you for listening.

Yes. Thank you very much, Mr. Felder and Mr. Erath. Ladies and gentlemen, we are now opening the audio Q&A session for analysts and institutional investors. [Operator Instructions] We start with Mr. Steiner. Mr. Steiner, you should be able to unmute yourself and place your question, please.

Patrick Steiner, ODDO BHF. I would have two questions from my side. First of all, could you maybe share your thoughts with us on your data center business revenue share in terms of group revenue, expected growth rates for the next few years and maybe give us some margin corridors. As you've mentioned, this is a profitable high-margin business. That was the first one. And the second one is, could you also give us some more information on potential restructuring one-offs baked into your 3% to 5% adjusted EBIT margin guidance for this year?

All right. Thank you for the question. I will take the first one. So with the data center, we are basically having meanwhile, a very broad customer base. So Microsoft, Amazon and all these big guys are our customers. We have a double-digit million revenue here with the data centers and participating in the exponential growth. So we are expecting, especially across Europe, but also into the Middle East, India, more momentum. The products that are going in are the high-end products, especially the trunking systems, for example, our TECTON II, the flagship product, what we just launched a year ago is one of this. And here, we are in the margin range between 45% and 55%.

And the second one on the restructuring, Thomas will answer.

With regard to the restructuring cost, we are not in a position to disclose how many restructuring costs we have factored in as this is subject to discussions with the workers' council and different plans. That's why we want to show our operative performance and not only EBIT numbers. But during the year, this will be clearer what we can do and what we can't do.

Thank you, Mr. Steiner for your question. And I am waiting for participants raising their hands. Mr. Marschallinger, you should be able to speak now and place your question if you unmute yourself.

Can you hear me?

Yes, we can hear you.

That's perfect. So just one question left on the top line guidance. Would you say this statement holds true for both divisions? Could you maybe walk us through your volume and price assumption for Lighting and Tridonic for '26, '27, please?

Yes. So as you have seen from the numbers, what Thomas shared, when it comes to the Lighting segment, over the last 4 quarters, we have been able to improve when it comes to the top line. And with the fact that we have run the efficiency program and streamlining the processes, we do see that in the last, let me say, quarter and now moving forward, price pressure coming, especially for the big projects, which is always the case. But on the other hand, a relatively stable price environment on the Lighting segment. And honestly, we are now monitoring very carefully how the material cost will go and obviously also consider the option that in autumn, we will need to increase our prices here to keep our margins. So in that sense, the Lighting segment is more stable in terms of pricing.

On the Components level, however, we are seeing with the oversupply here, the usual price erosion in the range of 3% to 4%. Also here, we see, especially from Chinese competition who are currently in quite difficult environment when it comes to the bottom line that they have started to increase the prices. Also here, this is already ongoing. So Tridonic is increasing the prices to mitigate this price erosion. So carefully optimistic, it might be that over the next 6 to 8 months, our prices on the Components level will become more stable.

And maybe I can add one comment. For PCBs, we have experienced price increases of 25%. And one of our biggest revenue drivers in the Components segment of about EUR 70 million are LED modules. And material costs consist primarily of PCBs in this segment. So we will need to increase the prices as well in this segment, and this will lead to higher revenues.

And maybe just to say the whole market, of course, is reacting to this. It's at the beginning. Most likely, everything will be happening after the summer break, September, early October.

Well, thank you very much, and we move on to the next participant, Mr. Sartori. You should be able to speak now and unmute yourself.

I just have two questions, please. The first one, touching again on your guidance and broadly flat revenue and the 3% to 5% adjusted EBIT margin. I appreciate your mention about the efficiency and the higher raw material prices. But I was just wondering if there is a level of revenue growth or organic and volume growth that could lead potentially to that 5% adjusted EBIT margin, so the top end of the guidance there.

And my second question is that -- apologies, I missed the first part. I have some technical issues, but I wanted to ask on the end markets and geographic exposure beyond data center, maybe. So just understanding more the most resilient, if you would like within Lighting, education, health care, retail, infrastructure, outdoor and if there are any main regions to call out here?

Yes. Thank you for your question. Let's see if we can cover this all, but if I understand your questions right. So obviously, we do have a couple of very promising businesses will deliver high margins. So what potentially could lead to the upper level of our guidance. One I said already, we are benefiting on the data centers. Here, I also have to say in combination with our partners like ABB and Legrand, who are heavily engaged in data centers, we are expecting that we have access to larger volume.

The second one, we have a fantastic competitive product portfolio when it comes to sports illumination. This is really -- we are FIFA-qualified. So this is really gaining momentum in building stadiums and sports infrastructure. This is the second one.

The third one is our new TECTON flagship, where first time, we do have a product portfolio that is not only addressing the high end, but also addressing, let me say, performance applications when it comes to warehouses, industrial halls, what do not require 100,000 hours lifetime and 15 watts, but are good [indiscernible] with a little bit lower efficiency and with 50,000 hours. And we have the product here, and we are seeing a clear momentum what will help us to grow.

It will be a little bit more difficult on the Components level as obviously, the OEM customers are also struggling in the market. When it comes to territories, we are seeing nice momentum across several countries in Europe, obviously, the DACH region, but also Italy, also the Eastern Europe. Middle East, we need to monitor very carefully because we had quite some challenges when the war started in delivering, currently more or less stable. But obviously, we need to monitor whether the investment, let me say, appetite is coming back to the levels before the war. So I think that are the key drivers what we have in the different markets.

One topic what we are currently suffering is the wholesale business across Europe, the wholesale business of Lighting. Fortunately, for us, not the big portion is very, very weak, especially in the 2 big countries, Germany and France, where the big distributors like Rexel and Sonepar have more or less shrunk by between 15% and 20% in the '25-'26 fiscal year.

Yes. Thank you very much for the questions, and I'm waiting for participants raising their hand using the opportunity to ask a question to the management. And if this is not the case, the brief information that there will be a roundtable today at 3:00. So ladies and gentlemen, you can use this opportunity as well, especially for journalists and retail investors during this call to place their questions there.

And by now, there are no more questions. And due to that fact, we come to the end of today's earnings call. Thank you very much for your interest in Zumtobel Group. A big thank you to Mr. Felder and Mr. Erath for the presentation and the time you took to answer the questions. And for some closing remarks, I hand back over to you, Mr. Felder.

Yes, ladies and gentlemen, thank you very much for listening, for joining us today and for the questions. In a nutshell, obviously, we are slightly a little more optimistic for this fiscal year despite all the geopolitical turbulences what we have. Stay tuned, and we hear each other again in September with our Q1 results. Thank you very much, and have a nice day.

Thank you.

Good morning, ladies and gentlemen, and welcome to Zumtobel Group's Conference Call on our First 9 Months and Third Quarter Results for our 2025, '26 Financial Year. With me on the call today are Alfred Felder, our CEO; and Thomas Erath, our CFO. Alfred will walk you through the highlights of the quarter, while Thomas will discuss the financial performance. After the presentation, both gentlemen will be available to answer your questions. In case you have not a copy of the report and the presentation, you may find both documents for download on our web page. After the call, a playback of this conference call will be available on our web page as well.

And with this, I hand over to Alfred.

Thank you, Eric. Good morning, and welcome, ladies and gentlemen. Thank you for joining us today for our Q3 call. The third quarter was once again a challenging period for our business as market condition and the broader economic environment remained difficult, impacted by the geopolitical tensions and particularly now since last week also the latest developments in the Middle East. However, in Europe, we begin to see signs of demand in new construction, but the recovery remains rather modest. The market climate continues to be shaped by the global uncertainty. And therefore, still, we are having, as we discussed also last time, longer decision-making cycles and reduced investment appetite.

Before we move into the details of the financial side, as always, I would like to give you an update on a couple of key projects what we did in the last quarter. Starting from the left side, that's the European Patent Office in Munich, where we also completed next to the first phase, the second phase in close collaboration with our strong network and lighting designers. Below that, an example of the office here in Barcelona, where we once again have demonstrated our expertise in creating high-quality and contemporary work environments. So if you look at the right side, and you see here the Festhalle in Bern, Switzerland. That's the new Festhalle venue that have been created for the BERNEXPO site that moves people culturally, economically and socially. And here, Zumtobel will deliver the complete lighting solutions as the overall lighting partner for Bern covering all areas from the concert hall and the foyer to the conference rooms.

Data center remains a key growth driver for us, and you see it here on the example of Amazon, where we did again a tailor-made facility for Amazon with our tailor-made products. And finally, to conclude, an example of a store here, the Levi's store in Paris. This project, again, demonstrates the competence in our retail, creating really this brand-enhancing retail environment that combines visual comfort, efficiency and architectural integration.

Before we go into the numbers, just as we have passed now the Olympics in Italy, I would like to highlight what we did over there because this is really something where technology, sustainability and the brand come together. And I can proudly say out of the 7 events or the 7 places and venues we, as the Zumtobel Group have been involved in 4. You see it here on the picture. One is the Predazzo Ski Jumping Stadium. The other one is the sliding center in Cortina. And then in Südtirol Anterselva, the arena for the biathlon and then in the fourth one, the arena of Santa Giulia.

For the Zumtobel Group, these games are more than a project. They are the opportunity to showcase how advanced lighting can enhance performance and improve the spectator and broadcast experience and set new benchmarks in efficiency and sustainability. And the strategic impact extends well beyond the event itself. Visibility on such a global stage strengthen us in the brand positioning and open door for new projects around the globe in the years to come.

On Slide 5 now, let me give you an overview before Thomas goes into the details on the financial performance of the first 9 months, a period that was characterized by, as I said, already the uncertainty in the economy and a weak market environment across the board. And you see this reflected also in the performance. The revenue for the group declined by 6.4% to EUR 828 million -- from EUR 828 million to EUR 775 million. On the segment level, the picture is as follows: Lighting segment generated EUR 618 million, while the revenue of the Components segment remains weak at amount EUR 200 million. And the adjusted EBIT at EUR 32.2 million, which corresponds now to an EBIT margin of 4. 2%. The figures clearly show that we are still facing the variety of challenges, which makes it particularly important to focus on the resilience and sustainability within Zumtobel Group. And that, of course, also includes what we reported, the ongoing review of our cost structures.

This picture, you know we are continuing to work on these 3 pillars, the lean organization, the streamlined processes in the shared service center for the next year budget. We have also a quite substantial increase of functions in the shared service. You know that are both in Portugal and also in Serbia in 2 locations, Belgrade and in Niš. And we do target to save EUR 40 million to EUR 50 million by '28, '29 with a portion coming in within this fiscal year and then basically the next 2 years to come. But the issue is that we are now building up the structure in the shared service center before we can transfer all this.

But I also wanted to emphasize, this is not just a cost-cutting exercise. It's about optimization and improving of our setup in the future to get leaner, more customer focused, so in our overall commercial organization. We are convinced, ladies and gentlemen, that these measures that we have introduced will strengthen our company in the future, especially hopefully, within the next quarters, the better market environment so that we are positioned here for the future.

And with that, I would like to hand over to Thomas, who will then go through the Q3 results in detail.

Thank you, Alfred. Good morning, ladies and gentlemen. Let me start with the Lighting segment. Q3 revenues in the Lighting segment amounted to EUR 190 million and were 3% below the previous year. Germany, Austria, France and U.K. recorded lower volumes, coupled with price pressure. However, positive volume contributions were recorded in the Southern and Eastern Europe region, highlighted by Italy and Hungary, along with positive growth in Switzerland. Adjusted EBIT in the Lighting segment increased from EUR 1.9 million to EUR 7.2 million. Our adjusted EBIT margin increased to 3.8% Lower material costs and the decline in personnel expenses more than offset the decline in revenues. Please keep in mind for comparative purposes that this year's research subsidy of EUR 1.7 million was recorded in Q2, whereas last year, this was recorded in Q3.

Let me move to the Components segment. Revenues in the Components segment declined by 10.4% to EUR 62 million in the third quarter. The difficult economic and geopolitical environment led to declining sales and also increasing pressure on prices. Adjusted EBIT in the Components segment totaled minus EUR 2 million. The adjusted EBIT margin stood at minus 3.2%. Lower material and transportation costs as well as lower personnel expenses were unable to offset the decline in revenues. Again, please keep in mind for comparative purposes that this year's research subsidy of EUR 1.8 million was recorded in Q2, whereas last year's Q3 figures included this research subsidy of the same amount.

Slide 9 show the Q3 results for the group. Revenues in the third quarter declined by 5.2% to EUR 237.4 million, mainly as a result of declining volumes and price pressure. Adjusted EBIT stood at EUR 0.6 million compared with minus EUR 0.2 million in the third quarter last year. Adjusted EBIT amounted to 0.3%. Overall, lower material costs, lower personnel expenses more than offset the negative impact from declining volumes. As already mentioned for the segments, this year's research subsidy of EUR 3.5 million at group level was recorded in Q2, whereas last year's figures included the research subsidy in Q3.

Let's move to the EBIT bridge. Looking at the adjusted EBIT bridge, we start with the prior year adjusted EBIT of EUR 41 million. The negative revenue impact totaled EUR 38.5 million with the decline primarily caused by volume reductions, which is about 2/3 and to a lesser extent, by price pressure around about 1/3. Looking at our COGS, lower material costs and lower personnel expenses had positive impact of EUR 22.3 million. SG&A and research costs made a positive contribution to results, mainly due to lower personnel expenses. As a result, adjusted EBIT decreased to EUR 32.2 million.

Slide 11 provides you with the information on our income statement. As I mentioned before, our adjusted EBIT stood at EUR 32.2 million. Special effects were negative at EUR 12.7 million. They include restructuring costs mainly in connection with the closure of our U.S. production sites and efficiency -- our efficiency program. In addition, the special effects recognized in Components segment reported in the second quarter include the impairment of goodwill, which was about EUR 2 million, impairment losses of capitalized development projects, EUR 2.7 million and on the other side, an investment premium of positive EUR 1.4 million in Portugal. After deduction of these special effects, our EBIT totaled EUR 19.5 million.

Our financial results amounted to minus EUR 9.5 million and net financing costs amounted to minus EUR 6.9 million. Other financial income and expenses totaled minus EUR 2.6 million and included the interest expense for pension obligations, FX and hedging valuation. After the deduction of income taxes, our net profit for the first 9 months amounted to EUR 9 million. As a consequence, earnings per share equaled EUR 0.22. Let's now move to the next slide, the cash flow statement.

Cash flow from operating results fell year-on-year from EUR 69.2 million to EUR 64.6 million, mainly due to a decline in sales. The change in other operating items amounted to minus EUR 36.4 million and resulted mainly from lower provisions for variable salary components and restructuring. Cash flow from operating activities stood at EUR 36.8 million in the first 9 months versus EUR 48.8 million last year. Cash flow from investing activities amounted to minus EUR 31.4 million in the reporting period. In addition to investments in property, plant and equipment, capitalized development costs of EUR 11.5 million are also included here. And as a result, free cash flow equaled EUR 5.4 million versus EUR 15.6 million last year.

Cash flow from financing activities amounted to EUR 10 million for the first 9 months versus minus EUR 36.3 million last year. The change compared to the prior year is primarily related to 2 factors. First, the increased utilization of the syndicated loan agreement; and second, the loan from the European Investment Bank. A reduced dividend distribution also contributed to this effect.

Let me finish with Slide 13 and some comments on our balance sheet. The balance sheet structure remains stable. The equity ratio increased to 43.4%. Net debt rose in comparison with the year-end close to EUR 131 million. Our debt coverage ratio is at 1.59.

And with this, I hand back to Alfred.

Before turning to our outlook, let me again show you the picture on the latest developments on the Euro construct data. The overall picture remains consistent with that what we have outlined in the last quarter. And really after several very challenging years, Europe's nonresidential construction sector is stabilizing. with 2026 still expected to mark the beginning of the gradual recovery. You see it here on the picture with new build of 2% growth and the renovation of 1.5%. And looking ahead, we will anticipate improving the momentum, particularly in the field of education and health care, while the segments like office and logistics remain comparatively weaker. The expected recovery continues to support by the rebound of new build activities following the prolonged period of construction completed by the structural resilient renovation demand.

But on the same time, regional disparities persist growth dynamic vary across the different countries where we are operating and the subsectors and the visibility in some segments remains limited. Renovation, however, continues to benefit from the energy-efficient initiatives, the ESG-related requirements and ongoing modernization needs.

In summary, the market environment has not changed since our last update, but the direction is gradually improving even if the pace of recovery remains moderate and uneven across the different countries. Against this backdrop, our strategic priorities remain unchanged. We are focusing on capturing renovation opportunities with our products and the positioning of the Zumtobel Group to benefit from the anticipating upturn in nonresidential construction. As you know, and we say this every time, the lighting industry typically lags in the construction cycle. So we expect any sustained market recovery will translate into an increased demand by our solution within a certain time delay.

This brings me now to the outlook. The overall market environment remains challenging and the geopolitical instability continues to create uncertainty, especially after last weekend in a market where we are quite intense. We are seeing customers adopt a more cautious approach with longer decision cycles and more frequent project delays. With the measures what we have taken and the efficiency program now in place, we have set a clear course to position the company for sustainable growth and continued innovation. And with a focused strategy and decision execution, we are responding to the ongoing shifts in the markets and creating the foundation for a resilient performance in the years ahead.

With reference to these uncertainties, we are maintaining our guidance for the revenue development. We continue to expect a revenue decline in a single-digit percentage for the entire financial year. Previously, we expected the adjusted EBIT margin to range between 1% and 4%, and we are now providing more precise guidance from 2.5% to 4%. We outlined in the quarter 2 that the current performance trends suggest they're tracking more towards the upper third. But obviously, with the now arising crisis in the Middle East, where typically the months February, March and April. So the last -- our last fiscal year quarter are the strongest one and creates additional uncertainty. The planned CapEx for the year amounts to approximately the EUR 50 million as indicated already in the last quarter.

Before we conclude the presentation and listening to your questions, I would like to once again extend the invitation to our investor event, what we have planned during the Light & Building Fair on March 12 in Frankfurt. We will provide an update on the current market situation, outlined how we are operating with this environment and share our outlook for the market going forward. And furthermore, you will then have the opportunity to visit all 3 our stands from the 3 brands, so Tridonic, Thorn and Zumtobel, where we showcase our latest solutions, products and innovations. And afterwards, you will be able to discuss key topics directly with Thomas and myself on the stands. So if you have time and are interested in the event and haven't signed up yet, please feel free to do so by clicking the link or scanning the QR code.

So with that, I would like to thank you for your attention. And now Thomas and myself are happy to take your questions. Thank you for listening.

[Operator Instructions]

The first question comes from the line of Michael Marschallinger from Erste Group.

I have 2 questions, please. Firstly, on the components first quarter development. Could you please provide us a breakdown of volumes pricing and also in terms of price pressure, what you are seeing currently on the market? And how does it compare to the previous quarters? And what are your expectations for fourth quarter? And this already brings me to my second question to your new revised adjusted EBIT guidance. This guidance still is a wide range for the fourth quarter from minus to positive fourth quarter. Could you maybe walk us through your assumptions for the last quarter? And did I understand correctly that the lower end assumes a longer Middle East conflict?

Let me start with the second question. You are absolutely right. Obviously, from the development, the 2.5% would be on the lower end of the quarter 4 results. We have a couple of special effects in there. As you know, we are in the middle of the fair time. We have participated now in 2 fairs. This one -- where we extended again the invitation the Light & Building is coming, what is basically having the cost in quarter 4. But the main reason is really the situation what we are having in Middle East, Michael, as you know, that's quite a significant market for us, the Emirates and Saudi Arabia, especially. And the March and April typically calls for something like 60% of the turnover, what we do. And obviously, here, we have the huge uncertainty what happens to that because currently, the products what are on the chip, we do not know when they will be accepted and more is to come. And that basically led us to this guidance.

Maybe the first one, Thomas can answer. Yes on the pricing.

The revenues in the Components segment declined by 10.4%. 4 percentage points out of this 10.4% are price pressure. The rest comes from volume mix and FX. And the price pressure in the Components segment was over the year, nearly the same. Nevertheless, we see that the price pressure goes down a little bit as competitors are starting to raise prices. They had lowered their prices more than Tridonic before and now they are raising prices again. So we expect that the price pressure declines.

[Operator Instructions]

The next question comes from the line of Emanuele Sartori from Kepler Cheuvreux.

Congrats for the results. I have just one question for now from my side. Just interested on the verticals here. Obviously, you mentioned education and health care, which might be a positive for you. I'm just wondering if you're seeing any other verticals holding up. I'm just thinking that you are now at the London fair, of course, focused on data centers. So I'm just interested to see the pipeline into Q4. But also in the next fiscal year?

No, Emanuele, you're absolutely right. Obviously, education and health care is one of the verticals where we expect growth because I maybe was not 100% clear. But when it comes to investments where we see it, a lot of it is coming currently from the push programs from the government in the, let me say, government sector. And obviously, that's then something where we are very well positioned to do so. But of course, we have other verticals. One, I think we mentioned it in one of the previous calls, is the whole sports illumination. We are now FIFA qualified as one of the few suppliers. I mean that's why I intentionally mentioned that what we have done in Italy because that's, of course, a lot of reference projects for stadium, and that's a very, very global business. So we are not so dependent only on the trends what we are seeing from most of other businesses in Europe.

Data center, that's still booming where we are -- where we -- especially in Middle East, for example, we are also going in this whole tunnel illumination what goes in. I forgot to mention, I think last time we had it on the picture, we have now all launched on our portfolio for our trunking system, which is the most successful product for Zumtobel going into retail and into industry, so like warehouses with the best price performance ratio. And we expect that this will have quite a significant impact in '26, '27. So a couple of products. And obviously, Emanuele, I think if you're coming to visit us at the show, you see first time how we are launching this and positioning in this and there are a couple of promising growth drivers moving forward.

[Operator Instructions]

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Alfred Felder for any closing remarks.

Yes. Thank you very much, ladies and gentlemen, for listening. I'm looking forward for those of you to meet you personally in Frankfurt together with Thomas and with Eric. I think we have a couple of extremely interesting things to show where you will learn that we have driven our innovations, and we are ready for the, let me say, ramp up again if the economy starts to pickup. With that, thank you for listening. Thank you for joining the call and have a nice day.

Good morning, ladies and gentlemen, and welcome to Zumtobel conference call on the first half and the second quarter results of our 2025-'26 financial year. With me on the call are Alfred Felder, our CEO; and Thomas Erath, our CFO. Alfred will walk you through the highlights, while Thomas will present and discuss the financial performance. After the presentation, both gentlemen will be available to answer your questions.

In case you have not a copy of the report and the presentation, you may find both documents for download on our web page. After the call, a playback of this conference call will be available on our web page as well.

And with this, I hand over to Alfred.

Yes. Good morning, and welcome, ladies and gentlemen. Thank you for joining us today for the first half year results. The quarter 2, what we just have closed was a continuation of quarter 1 in terms of challenges in the market, again, with low activities, investments decisions and processes partly pass and cost and therefore, a lot of project postponement.

But before I go into the numbers and then in details, my colleague, Thomas, I would like to, as usual, share with you a couple of highlights illustrating the bandwidth, what we do and the activities what we have in the different fields.

On the upper left, you see the Haus zum Falken train station, which was designed by the star architect, Santiago Calatrava. And here, we have illuminated entrance with the seamless CIELUMA light ceiling product. what basically showcase this entrance.

The second one, the APO BANK is a very typical example of refurbishment. This we have done in the past with our conventional technology. And now it's a turnkey where we have used our refurbishment packages, including the whole controls as well as the service, a typical example what we are running across Europe in many, many cases.

The next one is one of the key highlights. Obviously, you know that in 2026, now in a couple of weeks, we will have the Winter Olympic Games in Italy. And here, this is an example of the stadium of Biathlon in South Tyrol in Anterselva. And here, to meet the Olympic requirements, the entire complex has been upgraded.

A key innovation is our Thorn Altis Generation 5 floodlight and enhances really in every detail the competition and elevates the experience for spectators on site and worldwide.

This project is just one of what we have been contributing in 2026 Olympic Games. After the competitions, we look forward to sharing more and additional updates and actions on the photos of the different stadiums.

An example of our strategy in terms of sustainability, circular lighting was at PENNY shop in Austria. What is here so special about this project, it's the combination of a high system efficiency, the controls and what significantly improved the energy efficiency. The products, what we have installed here is our high-running product, TECTON 2, so the continuous roll lighting system, what we just launched in May this year and fitted with the VIVO spotlights.

You see for the ancillary areas and external lighting, the solution for Thorn were installed, so that includes the complete indoor and outdoor illumination what we have done here. Another key highlight where we are very proud is the Fish Market in Sydney, Australia, one of the iconic buildings where we did the whole roof architectural illumination. It's really a unique master piece done here.

That's the new world-class Sydney Fish Market creates a vibrant hat into the city. And with the commitment to sustainability, the project here minimizes the environmental impact to the responsible construction practices and energy -- innovative energy solutions.

So with that, I would like to give you the overview on Slide #4 on our financial performance for the first half for the fiscal year '25-'26. Obviously, as I said at the beginning, again, a period characterized by economic uncertainty, a very weak market environment with a lot of postponements and cancellations of certain projects.

These conditions are reflected here in our performance. You see the revenue declined from EUR 577 million to EUR 537 million, a minus of 6.9%. And at the segment level, the picture looks as follows. The first half, Lighting segment generated almost EUR 429 million, while the revenue of Components segment around EUR 138 million. The group EBIT stood at EUR 31.6 million, which corresponds to an adjusted EBIT margin of 5.9%.

The figures clearly show that our company is still confronted with a variety of challenges, which makes it particularly important to focus on resilience and sustainability within the group. And this also includes, of course, the ongoing review of the cost structures.

In Page 5, you see again the slide what we presented last time where we need to take the action in basically accelerate this efficiency program, what we have started in quarter 1, focusing on SG&A footprint. And you see here, that's the slide what we showed also last time with a saving of EUR 30 million to EUR 40 million by the '28-'29 financial year. 80% of those savings we plan to achieve already by '27, '28.

The main levers here, as you see, are the leaner organization, the expansion of our shared service centers, both in Serbia. In Serbia, we have 2 locations, one is Nis and one is Belgrade and also in Portugal, followed by further automation.

As indicated in the last call, we have also now in the last couple of months and weeks, reviewed our operations, the R&D and the procurement divisions. And this comprehensive analysis helped us to identify additional opportunities, and we have prepared actions for this.

And these measures are projected to deliver cost savings year-by-year with a total impact of approximately EUR 10 million in the '28, '29 financial year. So you see it here on top of the bars with the blue bar here. Our objective is not to simply achieve short-term cost reductions, but to deliver a structural improvement to our margins and sustainably strengthen the competitive position.

By strategically expanding our global business centers in Serbia and Portugal, the group, reinforcing the commitment of combining innovation with efficiency and therefore, strengthen the key value drivers to underpin the sustainability profitability and long-term creation of shareholder value.

Looking ahead, we will better positioned to consolidate our core capabilities, streamline the process and especially shorten the development cycles. And so we expect to see the first quantifiable effects for the initiated measures by the end of this fiscal year. And over the next 4 years, the savings will be increased steadily to a total volume of approximately now EUR 40 million to EUR 50 million in '28, '29.

Ladies and gentlemen, we are convinced that the measures we have introduced will strengthen the company for the future. And in this way, we are meeting the current challenges in the market, which is impacting the whole industry and also prepared for the hopefully upside coming when the recession comes to an end.

And with that, I would like to hand over to Thomas, who will explain now the Q2 and also the first half results in detail.

Thank you, Alfred. Good morning, ladies and gentlemen. A warm welcome from my side. Let me start with the Lighting segment. Q2 revenues in the Lighting segment amounted to EUR 218 million and were 5% below the previous year. Volume decreases were recorded in the U.K., APAC, Germany, Nordic and France and were also coupled with price pressure.

However, positive volume contributions were recorded in the Southern and Eastern Europe regions, highlighted by Italy, along with positive growth in Switzerland. Adjusted EBIT in the Lighting segment increased from EUR 17.8 million to EUR 22.3 million. Our adjusted EBIT margin increased to 10.2%. Lower material caused a decline in personnel expenses, mainly due to lower incentives and the earlier payment of the research subsidy in the amount of EUR 1.7 million had a positive impact on our adjusted EBIT.

Let's move to the Components segment. Revenue in the Components segment declined by 12.8% to EUR 67.2 million in the second quarter. The difficult economic and geopolitical environment led to declining sales across all regions and also increased the price pressure.

Adjusted EBIT in the Components segment totaled EUR 5.6 million in the second quarter. The adjusted EBIT margin stood at 8.4% Lower material and transportation costs as well as the early payment of the research incentive in the amount of EUR 1.8 million were unable to offset the decline in revenues.

Slide 9 shows you the Q2 results for the group. Revenues in the second quarter declined by 6% to EUR 271.2 million, mainly as a result of declining volumes and price pressure. Adjusted EBIT increased to EUR 25 million and the adjusted EBIT margin rose to 9.2%.

Overall, lower material costs, lower personnel expenses and the early payment of the research subsidy in total EUR 3.5 million had a positive effect on our adjusted EBIT. Slide 10. Looking at the adjusted EBIT bridge, we start with the prior year half year result of EUR 41.2 million. The negative revenue impacted totaled EUR 27.2 million, with the decline primarily driven by volume reductions and to a lesser extent, price pressure.

Looking at our COGS, lower material costs and lower personnel expenses had a positive impact of EUR 9.8 million. SG&A and research costs made a positive contribution to the result, mainly due to lower personnel expenses and the previously mentioned early payment of the research subsidy in the amount of EUR 3.5 million.

Adjusted EBIT decreased to EUR 31.6 million. Slide 11 provides you with information on our income statement. As I mentioned, our adjusted EBIT stood at EUR 31.6 million. Special effects were negative at EUR 10.8 million. They include restructuring costs in connection with the closure of the U.S. production.

In addition, the special effects recognized in the Components segment in the second quarter include the impairment of goodwill that was EUR 2 million, impairment losses of capitalized development costs, EUR 2.7 million and an investment incentive received from Portuguese government of EUR 1.4 million.

After the deduction of these special effects, our EBIT totaled EUR 20.7 million. Our financial result amounted to minus EUR 5.8 million and net financing costs amounted to minus EUR 4.3 million. Other financial income and expenses totaled minus EUR 1.5 million and included the interest expense for pension obligations, FX and hedging valuation.

After deduction of income taxes, our net profit for the first half year amounted to EUR 13.5 million. As a consequence, earnings per share equaled EUR 0.32. Let's now move to the cash flow statement. Cash flow from operating results fell year-on-year from EUR 58.1 million to EUR 52.7 million, mainly due to the decline in sales.

The change in the operating items amounted to minus EUR 20.2 million and resulted mainly from the settlement of accruals for variable salary components. Cash flow from operating activities stood at EUR 35.5 million in the first half year '25/'26 versus EUR 33.7 million in the previous half year.

Cash flow from investing activities amounted to minus EUR 21.7 million in the reporting period. In addition to investments in property, plant and equipment, this also includes capitalized development costs of EUR 8.8 million. As a result, free cash flow equaled EUR 13.7 million versus EUR 13 million last year. Cash flow from financing activities amounted to EUR 8.6 million for the first half year versus minus EUR 20.6 million last year.

The change compared to the prior year is primarily related to 2 factors: the increased utilization of first, the syndicated loan agreement; and second, the loan from the European Investment Bank. A reduced dividend distribution also contributed to this effect.

Let me finish with Slide 13 and give you some comments on our balance sheet. The balance sheet structure remains stable. The equity ratio is almost flat at 42.8%. Net debt is also flat in comparison with the year-end close standing at EUR 120 million. Our debt coverage ratio is at 1.47.

And with this, I hand back to Alfred.

Thank you, Thomas. Before now turning into our outlook, let me first share some key sector insights from the latest Euro construct release, what we have received in November 26, so just a few weeks ago. After almost 3 very challenging years, we are now seeing the first signs of recoveries in Europe non-residential construction sector, especially in the new build and also in the renovation.

Looking ahead, construction activity is expected to pick up, particularly in the education and health care sectors, where fortunately, we are very well positioned, while growth in storage facilities and office buildings is rather low.

The recovery is driven by a rebound of the new construction after several years of construction, while renovation continues to be steady in an upward trend. In short, there are early signs of recovery in the construction markets, even if the base differs across the different countries and regions. The renovation growth supported by the energy efficiency upgrades, ESG requirements and modernization needs. And the overall outlook, therefore, is positive, but uneven, as you see from the chart here across the different countries.

Our strategic focus will be on leveraging opportunities in renovation and positioning Zumtobel Group to benefit from the rebound in the nonresidential construction. As you know, the lighting industry typically comes later in the construction cycle. So the positive momentum will reach us here with some delay.

And this brings me to the outlook. The overall market environment remains challenging for the rest of our financial year and also into the calendar year 2026. The geopolitical instability will continue to create uncertainty. And we are seeing that the customers are adopting more cautious approach with longer decision-making cycles, a lot of postponements of projects, what we see in the market.

And this, of course, is impacting our business. With the measure we have taken and the efficiency program, what I shared with you now in place, we have set a clear course to position our company for sustainable growth and continued innovation. And through the focused strategy and decision execution, we are now responding to the ongoing shifts in our markets in the different countries and establishing the foundation for resilient performance for the years ahead.

And against this backdrop, we are confirming our guidance. We continue to expect a single-digit percentage decline of our revenues compared with the previous year. And therefore, our guidance for the adjusted EBIT remains unchanged between 1% and 4%. However, based on our current assessment, we anticipate finishing the year towards the upper end of the range rather than on the lower end and the planned CapEx for the year stands at approximately EUR 50 million.

As you know, we are just completing the investment now for our trunking system, the TECTON 2, which consumes quite a large amount of this CapEx. Before we conclude the presentation and open the Q&A session, I would like to extend an invitation to an investor event we will be hosting during the Light Building Fair on March 26, the biggest worldwide lighting fair where we are showcasing.

We will provide you here with an update on the current market situation, outline how we are operating with this environment and, of course, share an outlook how we move forward. And furthermore, you will have the opportunity to visit all the 3 stands at the fair, where we will showcase the latest product innovations from Tridonic, from Thorn and from Zumtobel. And afterwards, we will be able to discuss key topics with Thomas and myself directly at our stands.

So please save the date, and we will share further details with you at the beginning of 2026. With this, I would like to thank you for your attention. And now Thomas and myself are happy to take your questions. Thank you for listening.

[Operator Instructions] The first question comes from Michael Marschallinger with Erste Group.

Congrats to the good results. Firstly, on the guidance, the adjusted EBIT margin guidance, you already mentioned upper range is more likely. I'm just curious why you confirmed it. 1% and 2% doesn't really make -- doesn't -- seems impossible. This would mean negative H2, 3% would mean a flat H2. So why not just confirm this increase it to 4% at the moment? And do you maybe see also a possibility that we go above 4% even this year given the cost savings in H2 that you mentioned?

Thank you, Michael. No, very good questions. Obviously, clear, we are currently above this guidance after the Q2. But I think what Thomas shared, we have in the Q2 results also this extraordinary topics in with the R&D funding and also some funding what we got in Portugal, what we had last year with the exception of Portugal in our Q3.

Typically, our Q3 is a challenging one with the Christmas period. So that we are very careful with that one. And the Q4 needs to be a rebound in order to confirm. Currently, we are seeing some first sign of life, but it's very, very difficult to predict.

As I said in a couple of statements during the presentation, customers are constantly postponing projects. So obviously, if they shift then into the next quarter, then we have a risk that the growth or let me say, the less decline is not coming in quarter 4, and it's helping us in Q1, but not in quarter 4.

So that's basically what we have. And obviously, if everything goes right, where we fight very hard, it could also be a possibility to go above the 4%.

Okay. Understood. But then you would, as you said, need volume growth already in the fourth quarter.

Exactly. That's the big challenge.

Yes.

Project pipeline is there. But just to give you a little bit of an indication, we are really having a double-digit million project confirmed, partly shifted. And if the shift, especially in the quarter 4 is 2 to 3 weeks, which is normal nowadays, then we are automatically ending to have this revenue in quarter 1.

And may I add, we have also special costs in the second half. There is the light and building, and these are tremendous costs in the region of EUR 4 million and above if you include all the traveling costs.

Okay. Understood. And then the second question, I think most was already answered with the top line development. Would you expect third quarter, there was already a low base last year, EUR 250 million or maybe some plus or in the top line or also a further decline?

What you see, what Thomas has presented, we have been able to improve a little bit on the Lighting segment when it comes to, let me say, the negative growth. Quarter 1 was 7 minus, quarter 2 was 5 minus. We see here a certain, let me say, stabilization. But on the other hand, you see that the components business has had quarter 2 below the EUR 70 million.

And we are not seeing currently with the high volatility in the market that this will change. So obviously, it depends heavily also on our revenues, what are coming from the components business. In the Lighting segment, we believe, and you're right, that we might have a chance to go slightly above the Q3.

But currently, the run rate is in a similar direction like you see it on our -- on about Page 7.

The next question comes from Patrick Steiner with ODDO.

Patrick Steiner speaking. Congrats on the good results. I have 3 questions left from my side. We'll take them one by one, if that's okay for you. Firstly, on the project postponements and cancellations, which you've mentioned.

Could you give us a bit more information on which areas of the sector, which geographic regions we're talking specifically?

It's typically across the board. As you know, Patrick, we do have framework contracts with bigger customers in the retail segment in the automotive segment. Here, it's more that this framework contracts are not honored by the corresponding projects. That's topic number one.

Topic number two, postponements are mainly coming in the industry segment. Automotive is one what is challenging right now, but also in some of our industrial customers. And typically, the postponement of this project or let me say, the reliability of the projects coming on time as planned is higher in the DACH region or Italy and Benelux. And when it comes to Eastern Europe, U.K. and France, that's a little bit more fluctuating.

Where we have stable project setup is everything in the new technologies. So like lights for data centers, that's very often even more challenging that we have to deliver earlier also in the health and in the investments of education but are partly done by national governments.

Right. That's really helpful. On the cost savings effects for this year, you stated you see quantifiable effect for this year. Could you give us maybe a number or a run rate for this year?

For this year, we expect about EUR 4 million to EUR 5 million net savings.

All right. And that's not a run rate basically. That's the real effect on this year.

That's a real effect.

Yes. So Thomas was mentioning, we have also the restructuring, right? But it's really the net effect on top of this restructuring.

Okay. Great. Last question, just a clarification, if I understood this right. You said EUR 3.5 million of research subsidy in total on group level in the second quarter. And this is including Portugal.

No, Portugal is extra. We showed the subsidy in Portugal under restructuring because this was -- we handed in the request for the subsidy 6 or 7 years ago. So we said this is not a returning subsidy like in Austria, you get it every year. This is a one-timer, and that's why we disclosed it under exceptional items.

Patrick, you have this on the Page #11, so you have the details. So the subsidy of the EUR 3.5 million is both for components, Tridonic and for lighting brands.

We have no more questions. And at this time, I would like to turn the conference back over to Alfred Felder for any closing remarks.

Yes. Ladies and gentlemen, thank you very much for listening. Thank you very much for your questions. Again, I would like to repeat my invitation to Light & Building. Eric will send out. It gives you the opportunity not only to -- that we are able to share with you how we are moving into our quarter 4, but also showcasing how we drive forward the innovations to concur the market in the professional illumination.

Thank you very much for listening, and have a great day.