Ladies and gentlemen, welcome to the dormakaba Q1 2026/27 trading update investor and analyst conference call. I'm Vicky, the conference call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star, then zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Till Reuter, CEO. Please go ahead. Thank you very much. Good morning, everyone, and thank you for joining us today for dormakaba's first quarterly trading update for the fiscal year 2026/27. As you know, I'm Till Reuter, and I'm CEO of dormakaba. Today, as always, I'm accompanied today with our CFO, René Peter, who will join me in answering your questions following my initial comments and remarks. As part of our ongoing commitment to transparent communication with the capital markets and other shareholders and stakeholders, we are introducing quarterly trading updates. These updates are intended to provide a focused view of sales performance and key business developments between our more comprehensive half year and full year reporting. They also offer a regular pulse check on business momentum and evolving market conditions across our industry. I'm sure most of you have had the opportunity to review our first quarter trading updates released earlier today. I'll keep the opening remarks brief, recap a few key points, and then I'm open, and René, we both are open up for your questions. The first quarter, covering July 1st to September 30th, delivered a solid start to the financial year. Net sales amounted to CHF 702.9 million, an organic net sales growth of 4% year on year. It reflects the resilient business momentum despite trading conditions still impacted by geopolitical tensions, tariff, and conflicts with the everyday. Acquisitions had a positive impact of 1.3 percentage points on total net sales growth, though this impact was offset by divested and discontinued business in the period. Including a favorable currency effect of 1.1 percentage points, total net sales growth reached 5.2%. Organic growth was driven by volume growth of 1.3% and price increase of 2.7%. We are pleased to see that both segments contributed to the organic growth mix with Access Solutions continued to report robust volume growth and strong order book, and KWO benefiting from increased pricing due to higher raw material cost. Solid growth continued in Europe and North America, with notable contribution from Switzerland and accelerating growth in Australia. Alongside our organic growth priorities in Q2, we continued to execute on our disciplined M&A strategy. During the first quarter, we announced the acquisition of the Style Group in July, Azure in August, and Alliants in September. These acquisitions further strengthen our business portfolio in attractive market segments and support our strategy of expanding customer access, increasing our installed base, and enhancing our capabilities in areas where we see attractive long-term growth opportunities and sustainable value creation for our shareholders. In a consolidated industry and with the strength of our balance sheet, we see attractive opportunities to further expand our market presence through targeted bolt-on acquisitions. Beyond adding scale, these acquisitions enable us to broaden our capabilities, accelerate innovation, and bring next-generation access control solutions to market faster than we could do organically. We do have a strong pipeline of M&A opportunities and remain disciplined in our approach, pursuing transactions that fit our strategy and create sustainable value for our shareholders. With our strengthened portfolio, resilient business model, and continued investment in future growth opportunities, we are tackling the next chapter from a position of strength and therefore very confident to reiterate the outlook for the financial year 2026/27, now under IFRS accounting standards, namely organic net sales growth above 3%, operating profit margin above 11%, and operating cash flow margin between 10.5% and 11%. With that, I conclude my prepared remarks, and René and I would be happy to take your questions for this first quarterly update. Thank you so far. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star then two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. In the interest of time, please limit yourself to two questions. Anyone who has a question may press star and one at this time. The first question is from Delphine Brault, ODDO. Please go ahead. Yes, good morning. Thanks for taking my questions. I will limit to two. Starting with prices, what is your price assumption for the remainder of the year? I know it's only a trading update, but was your 2.7% price increase in Q1 sufficient to offset the inflation? Or you want me to ask- Okay, number one. Yeah, it's number one. Okay. Can you be a bit more specific on the trend by regions? Thank you. Okay. Let me start and maybe Eric can add. Pricing, we had 4%, one third volume, two third of pricing. I think what we see is that according to our guiding from September, that inflation remains high. It's not that inflation comes down very soon. That means on our supply side, we have higher inflation. I think that is what in the end we were guiding like one third volume and two thirds of pricing. I think it's also, and I know that was the guiding we gave in September, and we believe also that is the right guiding for the full year because we do not see that inflation come down. If I look more regionally and we are in Switzerland, I think regionally we have a very broad span from America towards Australia. If I took that two markets, so take on the one in Switzerland with a very low inflation. I think here pricing has a different magnitude than if you look at the high inflation like U.S. The more U.S. business also if it compares with our competitors, we having 25% U.S. exposure. I think pricing is higher in higher inflation countries. So we see higher pricing in U.S. I think for us it's a mix, because of our business, 25% U.S., majority in Europe, some in Asia. I think pricing is very locally and has to be in the end decided locally and globally tracked. If I look at the trend by region, we have a very robust momentum in Europe where we have a full product portfolio. I think what we have seen in the first half of the, not the financial, but the calendar year, Europe is robust, continues on a very good trend. We see rebound in Asia and in Australia with good starting of the year, Australia and Asia Pacific. We see China still a little challenged, and we see good momentum, continuous momentum as in the second half, in the first half of the calendar year in hospitality and also automotive U.S. Thank you. The next question from Patrick Rafaisz, UBS. Please go ahead. Thank you. Good morning, everybody. Maybe a follow-up, as the first question on the regional trend, specifically in Europe, excluding Switzerland. Can you add a bit more color where you see the robust momentum in terms of verticals and maybe countries? Is it correct to assume that the U.K. is still negative due to the hospitality segment? Then the second question would be on your KWO business where you talked about the benefit from increased pricing. What does that mean for volumes in that segment? Were volumes still positive also, for KWO or maybe flat or negative? Thanks. Thanks a lot, Patrick, for this question. I would like to start first with the European business performance out of Switzerland. As Till already mentioned, Switzerland was very strong in the first quarter, but we have seen also very strong sales momentum across whole Europe. When we look across Europe, strong volume growth in North Europe, Benelux, South Europe, where we see, as you already highlighted, U.K. is still impacted by prior year comparison due to the project business. Germany, what we see also there is that we have very good momentum, especially on access control solution. While in one specific product range on the safe lock business, this is more project driven, where we had last year a stronger project. Therefore, overall in the core Access Solutions market, very strong except as mentioned in U.K., where we have a tough prior comparison, especially due to hospitality. We also see a little softer business in France. On the second question, KWO. KWO is obviously when we look at the business, it is much more dependent on materials, especially on the key systems. That is where we actually see the highest price increase in our portfolio where we have been passing over the raw material price increases, which we saw are up to about 8% in the average to our customers. In that particular business, there was also a volume decline, especially on the automotive part. But the remaining part of the KWO business is actually growing volume-wise in line with our expectation. Excellent color. Thank you very much. The next question is from George Familo, Jefferies. Please go ahead. Hi. Two questions from me as well. First of all, volumes up 1%. I think in full year you said you had an order book that was up high single digit. I was wondering if you're seeing this continue and if you're seeing any hesitancy on these translating into revenues. That's my first. Then on second, if you could just give us a little bit more light on the acquisition strategy, going forwards, how important this is to your revenue growth and whether that's sort of changing this year. Thank you. Maybe I take the first question, then I pass over to Till for the second question. When we look at our order book, actually, we see a continuously strong order book, particularly in the core Access Solutions market. In our upper single digit, which covers roughly about three to four months of revenue. This is particularly very strong in markets like U.S., Germany, but also Australia. When we look at the KWO business, the order book is slightly softer. But again, there it's more driven by project business, especially on the Movable Walls side. But overall, we are based on our order book confident, especially in Access Solutions for the coming months, where we have seen, as mentioned, a continuation of our strong order book, as we have already seen that at the end of Q4 last year. With this, I would like to hand over to Till for the second question. Thank you, René. I think on the M&A side I will do some statements. You all know that we have invited you to the Capital Markets Day on November 18, where you are getting more details on our M&A strategy and what we see and where we are heading in the future. Let me do a couple of statements. I think first of all, at the beginning of the transformation process, which we finished this year, we have not done acquisition. We did start last year, and we have done 8 acquisitions in the fiscal year 2025, 2026, and we have done 3 acquisitions in the first quarter. I think what René and I in the end communicated that M&A is an integral part of our growth. We have organic growth of about 3% or 3% plus. The M&A part is a very important part, and we want to participate, and we have the balance sheet to take an active part in the M&A consolidation. What we see is so far we have done lots of bolt-on acquisition which are not increasing our complexity but helping us in the offering we have seen on the Airsphere. We could have with Alliants on hospitality. I think we have done acquisition which will really help us on growing and to continue on this way. That is, I think the goal that we will give you clear guidance on M&A, how much we see per year. I think that is something which is planned for November. Thank you. Looking forward to the CMD. Sorry? Thank you. Okay. The next question from Martin Hüsler, ZKB. Please go ahead. Yes, good morning, everyone, and thank you for taking my question. My first question is on the general environment. Do you see any impact from higher interest rates, obviously in several markets, maybe in terms of impact on order book executions or delay of projects? Maybe I ask my question one by one. Okay, let me talk on the environment. I think it is something we are growing 4%. I think also like if you maybe one adding on the Access Solutions, we were having more volume. So I think the 4% was nearly equally distributed between price and volume. So I think that's also a good indication, and I think René mentioned that on the KWO side, we had more pricing, less volume, but on AS, it was nearly equally distributed between price and volume, which is, I think also shows the good momentum. And I also mentioned at the beginning that we had solid organic growth of 4%. And I think it's a resilient business momentum. And we see that we are still in the middle of lots of volatility: geopolitical tensions, you see the wars, the armed conflicts, you see the tariff discussion. I think here we see that the environment, we also do not believe that the environment is changing drastically to come back to what happened five years ago. And I think we have to manage the volatility. On the interest rate, as mentioned at the beginning, we see that inflation will stay on a higher level, which has an impact on the one hand on the supply, although we have to think about how do we work on the pricing because our raw material we are buying On higher levels. On the interest rate, the biggest impact is maybe much more on residential. You know that we have more than 80% commercial. I think the interest rate has a bigger impact on new projects on the residential side. So we see an impact, but I think that's something where it did not change over the last six to 12 months. I think it remains consistent. To be clear, we also did not see so far an impact from the German infrastructure package. I think it's many small topics also like we see smaller impact because of U.S. government spending. So I think it's lots of things which are unchanged over the last six to 12 months. In the end, it reflects the volatility of the environment. Still same time, it shows the resilience and the robustness of our business that we really deliver on target 4%, above the 3%. I think that we want to continue, and we are very confident that we are going to deliver for the full year. Thank you. That's very helpful. The second question I have is rather a technical one. I think the conversion to IFRS has had a positive impact on the sales. At least you guided that for the full year. Now, if we look at the second quarter, it looks like that seasonally, the second quarter seems to be at least in terms of sales on a similar level than Q1. I rather thought that Q1 would be a more important quarter due to a weak December month. Maybe can you share some details about how we should expect the sales in absolute numbers as well as to evolve over the next couple of quarters? Is there a certain seasonality quarter by quarter? Martin, I will take this question. The first on the IFRS conversion. Yes, it's correct. It had an impact on the top line. It's for the full year, roughly about CHF 34, CHF 35 million because we were reclassifying some freight charges, which we had deducted in the past from our gross sales, which is now part of cost of goods sold. Regarding seasonality of our business, normally Q1 is the softest business in our year because of especially a vacation period in July and August in Europe. What we normally see is a strong September. October, November are strong months. Similarly, afterwards, especially also in the second half year, it will be typically March, May and June. Therefore, when we look at the seasonality, we have seen about quite equal distribution half year by half year, but it changes quarter by quarter. Thank you. That is helpful. The next question from George Featherstone, Barclays. Please go ahead. Hi, good morning, and thanks for taking the question. The first is just really a follow-up on the pricing commentary you have given. Obviously, you are running ahead of what you guided, and I appreciate your comments on higher inflation as you see it ahead. But obviously your guidance on organic growth is around well above 3%. So I just kind of wondered from a price perspective, do you cover that at least 3% organic growth through price this year? Is that kind of what you are steering us towards now? I think that is the question in the question. If I would say pricing is 3%, this would be to grow above 3%. I think, is it maybe the question which you formulate in a way that you talk about, do we increase the 3%? I think it is more like, we see that we want to grow above 3%. I think it is important that pricing and as we guide in September, one-third is volume, two-third is pricing. I think we saw that in Access Solutions, it was more like 2% and 2% pricing. So two volume, two pricing. I think we believe that pricing stays on a relatively at a level where we see today. But in the end, I think we are still at above 3%. We are early in the year. We are confident on the full year number. Pricing is an important part, and pricing is regionally different. It is different if you look about, and then you also compare it against the competition. The U.S. has higher pricing increases because also higher inflation compared, for example, to Switzerland, and we have 25% U.S., which means only we have this pricing on 25% of the business, while others might have 80% or above 50%. I think it is more like pricing is very important. It will be approximately two-thirds of whole. It is locally discussed and has to be based on local performance and local competition. As I have mentioned, we have to manage through the year, and we are very confident to grow above 3%. Okay, that makes sense. Thank you very much for the color. Just on the order book. Obviously, you have given this commentary about being up high single digit, and I think sorry, the line didn't come through exactly clearly. You are kind of saying the same thing. Is it the case that we have seen sequential improvement because if it is a lower business activity, have the orders actually accelerated in the first quarter of this year or is it just staying at the same level? Weaved into that, are there any particular segments that are driving that order book growth? Because obviously it is significantly above the run rate growth rate of Access Solutions. Just wondered what is driving that. Thank you. On the order book, maybe first, we already communicated end of Q4 that we had a double-digit growth on order book. This continued in Q1. That indicates that this is a sustainable, good program momentum, which we see especially on the project business. That order book is mainly driven by project businesses, therefore it is driven by vertical solution. Especially on the vertical solution, we see that we are growing strongly in those markets where we are more advanced with vertical solution sales, especially in the core Access Solutions market, particularly as mentioned in Germany, North America, but also Australia. Therefore, the order backlog is particular correlating with the strength in our project business in those markets. Okay. Thank you very much. The next question from Vitushan Vijayakumar, Baader Helvea. Please go ahead. Hi. Good morning, everyone. Thanks for taking my question. I will have two, please. Take them one by one, if it is fine. The first one will be on the phasing of your revenue. If I am not mistaken, you said that the first quarter is the softest. Taking the growth of 1.3% in terms of organic growth, is it fair to assume that the growth in the coming quarter would be higher than what we are seeing in the first quarter? Or is it too optimistic given the pipeline and the order book that you have in hand? How would you describe these assumptions? That would be my first. I would. Yeah. Maybe the first question, I think you always need to consider that also you had a seasonality in prior year. Therefore, I think it is extremely difficult just to extrapolate that and anticipate what does that mean for the next quarter. But I just would like to reiterate, we are guiding above 3% for the full year. Yeah. Now, your second question? The second question will be on the main vertical. You gave some indication on the region. Can you also give us some colors on the evolutions of your main verticals for the first quarter and what you're seeing as well for the remainder of the year? I think that's a good question, and it will be part of the Capital Markets Day update. Maybe I a little bit give you the. Also the acquisition we did. You'll see airport is one of our greater verticals, and we have acquired Airsphere last year, and it will help us to globally roll out the business. You saw that we're getting more airport business in the U.S. I think here is one vertical where we strategically develop it, further invest into software, and where you can see how that rollout is. We are good with, for example, Star Alliance, but also you see then the rollout in the U.S. with US Air and with the lounges in the airport in the U.S. I think that's one vertical where you will also see more. The other one is data centers. When we acquired TANlock, I think it's one of the verticals. We are not depending on data centers as many other companies, which see our data centers for something like CHF 20 million plus minus. We are growing strongly, but it's not something one vertical where we are depending. But here with TANlock, we also have a full offering. It's one of the areas where we're expecting high growth for the next years. Taking hospitality, same. Hospitality, we are acquiring Alliants, as I mentioned, one of the acquisitions, which really helps us on having software and having value-added service for our customers in the hospitality space. I think it's all areas where we are consistently investing in the go-to-market for the verticals, and where we tell you more about how do we expect, how we are going to grow in the vertical. From the past, we have been very strong on distribution. We want to be keeping strong in distribution, 60%, but the vertical is something where we are investing more because if the end customer understands what we can do in the hospital, on hospitality, on the airport, we will have push-pull directly and over distributors. I think something where you should expect more information on the Capital Markets Day, but it is clearly a very successful execution of our strategy. Okay. Thank you. We will take the last question from Manuel Lang from Vontobel. Please go ahead. Good morning, everyone. The first question would be on seasonality. You described it, and this was very helpful. Could you give us any color on the quarterly dynamics in terms of growth of the past year? We know the first half was a bit slower, but the quarterly indications would also help to better understand the base going forward. Secondly, it is kind of a follow-up, but a bit broader. You are guiding or you are mentioning high single-digit order book growth compared to last year, which I recall has a visibility of roughly one quarter, but the growth is actually much lower. Maybe you could help us understand the difference here a bit. Thank you. Mm-hmm. Okay. Maybe the first question on the seasonality. As you may remember, we had in the first half year last year, 2% growth. In the second half year, 4% growth. The first half year was softer. From that point of view, when we look at the Q1, we actually had in Q1 last year a strong U.S. business, a little softer European business. That is what you see now in the current performance, that this is actually now, especially in Europe, we see a very strong growth. Therefore, when we look at the full year last year on the 3% growth, a substantial part of this growth was actually delivered in Q4 last year. That means it was a little back-end loaded, which I think is also important that you consider that in our guidance on the above 3% growth for the full year. The second question about the order backlog. Obviously, when we talk about the order backlog, we talk in the average of three to four months, but it varies significantly across the different business units. We have business units like Movable Walls, where we talk more about up to 12 months, because there the project realization timeframe, it is much longer. Then you have other projects which you can realize much faster. Therefore, I think when we talk about average, I think it is important to see that in light of different business models and therefore also realization might be different business by business. Okay, thanks a lot. This was the last question. I would like to turn the conference back over to Mr. Reuter for closing remarks. Thank you. Thank you for your questions. I think it's the first quarterly call. I think it's got lots of good interest, good questions. Thank you for your attendance. Then see you soon at the Capital Markets Day in November, where we can go in more detail on lots of the questions you raised. Let's continue, and we will continue the momentum. Thank you very much, and see you soon. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating. You may now disconnect your lines. Goodbye.