Fagerhult Group (Stockholm:FAG) Q3 2026 Earnings Call

0:00 Good morning, everyone, and thank you all for joining us today. I'm Niklas Willstrand, Head of Communications at Fargo Hult Group, and it's my pleasure to welcome you to our Q3 2026 resource presentation. On the call today, we have, of course, President and CEO, Bodil Sonesson, along with our CFO, Oscar Wallstén. Bodil will begin with an overview of the quarter followed by an update on the executions of our strategic priorities and the progress made in key areas. Oscar will then provide a deeper dive into the Group's financial performance. To close, Bodil will summarize the key points before we open the floor for your questions. We will start with questions from the conference call participants and then take questions from the webcast.

0:49 You can ask questions by pressing pound key and five or in the chat window on your screen. And I will then read them up for Bodil and Oscar. Please note that today's session is being recorded and will be available on our website later today. So with that, I will hand over to you, Bodil. Please go ahead.

1:08 Thank you, Niklas. And also welcome for me to everybody who is on the call today. So the market remained Thank you very much. and that is that the savings program of 100 million that we communicated in July remains on track. The cost savings, the total cost savings in Q3 was 51 million and we had 25 who was related to the savings program.

2:06 The additional 26 million in the quarter of lower cost were related to lower commissions based on lower sales levels. We continue to work on additional cost savings measures and that they will be materialized in coming quarters. Then we had the additional 120 millions of savings from the strategic review. We have not yet seen those in our earnings. However, the activities leading to them are advancing. The first action was the one we announced for LTS in Germany, and it's the first concrete steps in delivering on that 120 million. And work is ongoing in several other areas across the group. And as these initiatives mature, we will also communicate them to the markets.

2:57 So if we then turn to the quarter, EBITDA before items affecting compatibility amounted to 130 million compared with 173 million last year, and that correspond to a margin of 7%. While profitability was impacted by the lower volumes, the EBITDA margin stabilized at A level in line with the second quarter 2026, which is reflecting our cost discipline and the impact of the actions already implemented. If we're looking at the order intake, it was a disappointment. It weakened during the quarter and amounted to 1 billion 700 million Swedish crowns, corresponding to an organic decrease of 13.8%.

3:44 and this is reflecting that activity in larger projects remain very limited across all our main markets. Alongside the cost and efficiency measures, we're also increasing our focus on initiatives that can support growth also in the near time. Across the groups, we're strengthening pipeline management, lead generation and commercial execution. As an example, within business area premium, In particular, we are accelerating our focus on the installed base. And as you know, we've been in the market for many years, targeting renovation and upgrade opportunities where customers can improve energy efficiency, sustainability and lighting performance.

4:30 While these initiatives will not fully offset weaker market opportunities, they enable us to capture opportunities that are less dependent on new construction and strengthening our position in the market. It's also very much in line with our renovation focus that you've heard us speaking about for quite some while. Net sales in the quarter amounted to 1,860,000,000 Swedish crowns, which was compared to 2,027,000,000 last year. The decrease was mainly attributable to lower order intake in previous quarters at the beginning of the year and adjusted for currency effects and acquisitions. Net sales decreased organically by 9%.

5:15 So despite the market environment, we continue to see positive development in several parts of the group. In particular, in Iguzini, LeadLinear, Trouto TLV and DesignPlan, who delivered encouraging performance, supported by resilient demand in selected customer segments and geographies. It means it doesn't look the same everywhere, so there are segments and geographies that are more positive. Work on the strategic review continued during the quarter, with focus on strengthening our core European business, improving cost efficiency and accelerating growth in selected areas. And as I said, LTS in Germany, which I will come back to to give you a little bit more detail on, and progress on the growth side in data centers are two concrete examples of how we move from strategy to execution.

6:06 So as we enter the final quarter of the year, the market remains challenging with limited visibility, and we remain focused on our strategic priorities to building a stronger foundation for the future. So if we then move into and look at what we presented in July, and we was that we communicated our strategic review to the market. And if we We look into our three clear priorities that we communicated. They were reducing costs while strengthening our European core business, maintaining our leadership in innovation while accelerating in high growth segments and leveraging the strength of the group more effectively.

6:51 So we have already started to turn these priorities and concrete examples. So coming back to LTS in Germany, There we've taken an important step to strengthen long-term profitability. So what do we do? We bring in the sales organization of LTS and Fargo altogether while we optimizing the product portfolio and we are closing the production facility in Germany, which we announced in September. and the production will be relocated to other facilities within the Group. These measures will improve competitiveness while also representing the first concrete actions resulting from the strategic review. Eltis is one example of what we've been executed in the period, but you also have agreed to divest our Estonian subsidiary and they will become a distributor instead. So we're changing the model so they will continue to sell our products.

7:51 So we maintain the presence in the market while at the same time simplifying the group structure. And in addition, we've also signed an agreement to sell our office property in Guildford in the UK, and that will contribute positively to our cash flow and net depth in the fourth quarter. So these are some good examples of how we're translating the strategic review into concrete actions. Some initiatives improve profitability, others simplify the business or strengthen the balance sheet, but all support our ambition to build a stronger, more focused group. At the same time, we continue to invest in areas where we see attractive growth opportunities.

8:37 So data centers is one of those areas. We now have experience from more than 60 projects across Europe and we have secured a number of new projects during the quarter, including during the last third quarter. This gives us an increasingly strong platform from which to develop a more coordinated European offering across the Group and further expand our position in this segment. And as you know, innovation remains equally important of long-term growth. And during the quarter, as an example, at Delilictan, we have launched an upgrade of the Time series, which is one of the brand's largest product families. And the new offering includes a new lighting package designed to provide higher efficiency that meets the high demands of modern workplaces with an excellent lighting quality. So these different examples, together with our cost savings programs, all point in the same direction. We are simplifying the business, improving efficiency, strengthening competitiveness and investing where we see the greatest long term opportunities.

9:47 And with that, I will hand over to Oscar, who will take you through the financial performance in detail.

9:55 Thank you Bodil and good morning to all of you. Let me now take you through the financial development in the quarter. As Bodil has described, market conditions remain challenging across most of our markets during the period. Activity in new construction continue to be weak and customers remain cautious when making investment decisions. While profitability and cash generation remain below our expectations, there is evidence that our strategic operational improvement initiatives are starting to gain traction as Bodil mentioned. Throughout the quarter, we maintain a strong focus on cost control and we will continue to focus on operational efficiency and working capital management.

10:44 Let me now move to the financial summary for the quarter. Net sales decreased 8.2% during the quarter, reflecting continued weak demand across most of the markets. While not reflected in the table, the report also highlights a declining gross margin. The 3.6% percentage point decrease was primarily driven by lower volumes in collection and premium, where the cost base has not yet been fully adjusted to current demand levels. In addition, material and production costs accounted for a large share of sales compared with previous quarter or previous year, sorry.

11:34 EBITDA before IEC amounted to 130 million compared with 173 million in the corresponding quarter last year. Reported earnings benefited from a positive non-recurring earn-out revaluation related to Capelon of approximately 30 million. Excluding this item, underlying profitability remained under pressure due to lower volumes, continued margin pressure in several business areas. Cash flow remained weak during the quarter and improving cash generation continues to be key management priority. Let me now turn to profitability.

12:21 reported EBITDA margin before items affecting comparability was 7% in the third quarter, compared with 8.6% in the corresponding period last year. It is important to note again that the quarter includes a positive non-recurring earn-out accrual release of 29.7 million. This item had a positive impact on reported earnings and should not be viewed as a part of underlying operational performance. Excluding that item, the EBITDA margin would have been approximately 5.4%. Highlighting that underlying profitability remains challenging by lower market activity and reduced volumes.

13:10 That said, we're encouraged We saw particularly good progress in professional and infrastructure during the quarter. Looking at the rolling 12-month perspective, the EBITDA margin decreased from 6.9% to 6.5%. This underlines that while we're seeing early signs of operational progress, there is still considerable work ahead before profitability returns to levels we consider satisfactory. Going forward, our focus remain on executing the strategic initiatives already underway, further improving efficiency and converting operational improvements into sustainable margin recovery.

14:13 Looking at the business areas, the performance varied considerably across our portfolio during the quarter. Infrastructure was once again the strongest performing business area. Delivering both growth and improved profitability, professionals showed relative stability despite challenging market conditions. Collection and premium continued to be affected by lower demand. Weaker volumes and pressure on profitability. When the current market environment remains difficult, the quarter clearly demonstrates the value of our diversified portfolio and our exposure to several different customer segments and markets.

15:02 Let me dive into the different business area more in detail. Collection continued to operate in competitive environment during the quarter. Demand remained weak across most markets, particularly in the Dutch region and Nordic countries. Customer activity remained cautious and product volumes were lower than in the corresponding period last year. Lower sales volumes combined with an unfavorable business mix put pressure on profitability. At the same time, there were positive signs within selected parts of the portfolio.

15:48 Brands such as Egucena-led Linear demonstrated resilience and activity within several outdoor applications remained relatively stable. Our focus remained on adopting the cost base, improving efficiency maintaining our strategic market position. Business Area Premium Premium continued to operate in a demanding environment during the quarter. The European lighting market continued to be weak, particularly within office and education applications, where investments activity remained low.

16:34 In addition, several larger project decisions were postponed during the quarter, which negatively impacted order intake and sales development. At the same time, we saw encouraging developments within renovation-related demand, activity increase in several markets, and the business secured a few important projects wins during the quarter. We also continue to execute operational improvement initiatives, including actions within our German brand LTS, aimed at strengthening profitability and competitiveness, as Bodil mentioned. Going to professional.

17:22 Professional delivered a relatively stable performance despite the weaker market environment. Sales development varied between markets. France and UK remained solid, while Australia continued to develop positively from a commercial perspective. Although demand levels remained below historical norms, the business was able to maintain a relatively stable activity level. Profitability was negatively impacted by gross margin pressure, but disciplined cost management helped mitigate part of the earning impact. Overall, professionals continue to demonstrate resilience despite the challenging market conditions.

18:14 Infrastructure. Infrastructure was our strongest performing business area in the quarter. Growth and profitability improved compared with corresponding period last year, primarily driven by design plan. Demand remains strong within public infrastructure and correctional facility projects, where design plan continued to perform very well. We also continue to see attractive opportunities within data center applications across Europe. A segment that remains structurally attractive and where activity levels are significantly stronger than in many other markets. Let's move on to cash flow.

19:04 Cash flow from operating activities amounted to negative 62 million in a quarter. Compared with last year, the development was mainly driven by weaker earnings and continued working capital absorption. Inventory and receivable levels remain elevated relative to the current demand environment and improving working capital efficiency remains a clear management focus. While we are not pleased with the current cash conversion level, several initiatives are ongoing across the group to improve cash generation and strengthen balance sheet efficiency. And the last slide, from EBITDA to EPS.

20:00 Let me bridge the development from EBITDA to earnings per share. EBITDA before items affecting comparability amounted to 130 million compared to 173 million last year. Following items affecting comparability, the 40 million, Reporter EBIT amounted to 160 million. In addition to lower operating earnings, net profit was significantly affected by higher financing costs. The financial items amounted to negative 66 million in a quarter compared with negative 22 million last year.

20:46 This increase reflects a combination of higher debt levels Higher interest cost and currency related effects. And in the box on the right hand side, you can find the details. As a result, earnings per share amounted to five öre for the quarter, compared with 49 öre in the corresponding period last year. With that, I will hand back to Bodil for the concluding remarks and outlook.

21:18 So thank you, Oscar. So I think that we've heard today that market conditions remain challenging and that we are not satisfied with our current financial performance. At the same time, we are taking decisive actions to strengthen both profitability and competitiveness across the group. Our previously communicated 100 million saving program remains on track. as well as we're working on the identified additional opportunities to further improve earnings by approximately 120 million as part of our strategic reviews. And the actions announced within LTS are the first concrete steps in that process and the work is continuing across a number of other areas.

22:07 And we have identified all the actions to reach the 120 million Swedish crowns. While visibility in the market remains limited, our priorities are very clear. So we are focused on improving the efficiency. We are strengthening the cash generation and we are levering the strength of our European platform and continue to invest very selectively in attractive growth opportunities such as data centers. We believe these actions will make the group stronger, more competitive and more profitable over time. So I think that concludes my remarks for today. And with that, I will hand over to Niklas to open up for questions from the floor.

22:52 Thank you very much, Bodil and Oscar. We will now move on to the Q&A session, starting with questions from participants on the conference call. So please, operator, go ahead. Just as a reminder, if you wish to ask a question, please press pound key five on your telephone keypad. The first question is from Lara Motadi from ABG Sandal Collier. Please go ahead, Lara. Your line is open.

23:17 Yes, good morning, Bodil and Oscar. A couple of questions from my end. Unlike Q2, you neither in the report or in the presentation really comment anything about covenants. You may be able to comment a bit on that, where they met in Q3, how much headroom is there? Any comments around that?

23:41 Yeah, sure. Good morning, Laura. I don't think we mentioned it in Q2 either, actually, because as long as we meet the covenants that we have with the banks, we don't need to to give an update to the market. So we are still within the covenants levels that we have agreed with the banks.

24:06 Okay, very clear. Thank you. And also on the restructuring costs, you booked 14 now in Q3 and in Q2 in the conference call you said you're expecting around 350 to 400 million. As a sort of range with the majority that's going to be in cash, is the timing still mostly Q4 and some in Q1? And sort of the cash part, how much falls into Q4?

24:39 Yeah, very good question. The estimated value is still the same. It might have slipped a little bit in time. We estimated some to come in, some more I should say, to come in in Q3, but most of it will be in Q4 and some in Q1. We don't think it will have any negative cash flow.

25:09 And just a bit on cash conversion, you talked a little bit about this briefly, and you say that inventory and receivables are elevated relative to the demand. How much working for release do you sort of see an overall time frame? Any other levels such as lower capex, I mean, besides increasing for stability?

25:50 Very good questions, too. It's always pretty difficult to predict the future, but we're aiming for an improvement of approximately 100 million in Q4, mainly when it comes to inventory and The reason why the receivables have gone up a little bit in the quarter now and in particular compared to last year is related to a different customer mix. So it's not that customers are not paying, it's just that different customers have different payment terms. So it has been a little bit unfavorable customer mix Credit Day point of view.

26:43 That should become better in Q4.

26:45 Okay, thank you. And just a bit on sort of demand. In Q2, you sort of described orders as stabilizing. But now in Q3, you had minus 14% order intake growth. And you said that, well, you described larger projects as postponed. Do you see any of these coming back and what have you sort of seen now in October?

27:16 A few comments. I think we've said for quite a long time that we don't see the bigger projects. I think we started that communication quite early on. And I would say if you look for the shorter time perspective, we still don't see those. So if you look into impacting the shorter term, we don't see the big projects there. I think I would say there is slightly more activity on the longer term side for bigger projects. Then if you look into Q3 in the order intake, I would say specifically July and August was disappointing. The summer months were more quiet than we expected. September and October has been approximately on par, so not in line to our expectations, but the real low peak was July and August.

28:05 Okay, very clear.

28:06 And then, as I said, we are working also a lot on short-term opportunities. And for example, I gave you the working with the installed base. I mean, we've been around for a long time. And when you look into changing of cycles, the first level of LED we installed, customers that we had in the early part of that, they are coming up as of having to change or wanting to change. So that is one of the short term measures we're working on in different markets.

28:42 Okay, thank you. That was all from my end. Thank you very much. Next question is from Oscar Rundquist from SCB. Please go ahead, Oscar.

28:53 Thank you and good morning. So my first question would just be on you know as larger projects are a bit slower at the moment, could you give any indication on what's the sort of growth levels in renovation and also if you could talk a little bit about or maybe repeat your actions to strengthen the renovation offering. Thanks.

29:15 We've been working on the renovation offering for a long time, as you know. And I think if you look into impacts of European performance and business directive, we can see that there is, in general, when you look at that, there are more interest on the market for it and a bit higher inquiries on that side. So I think that's one part of it. But what you're looking into, what I just said, what we are doing... is that we are going back to our install base and proposing them to see if there is a need for upgrade. And we started that project actually in Norway in the beginning of the summer within the Fagerhult brand. And they got very quickly, very positive feedback and positive project request backs.

30:02 So now we have since just after the summer, Edwin Roobol So then, of course, we are focusing more and more over to that side. Then to give you a growth number on the renovation side in the market, I don't have the latest statistics from the market on that side, but I wouldn't expect that you see a huge difference there. It's the same trend as we've seen before, that there's more renovation and less new builds.

31:04 All right, thanks. That's appreciated. Is it possible to get any quantification on your numbers, like how big of a portion of your sales at the moment is on renovation versus how large share of the degree it has been before?

31:20 We've done some, I can't give you for the total group, we have again done some estimations within the Fargo Hult Group and I think within the Fargo Hult brand and if you go back to just 2023, we estimated it to be approximately 50-50 and today we are up to 75%. So if you look at that from a general perspective, you can see that it's a very clear trend.

31:50 Thanks, that's very appreciated. One question on maybe smaller segments, but infra was a bit stronger in queues on sales and earnings. Thought you had some positive comments on the outlook there, but just seeing the ordering intake down 20%, I think that the comparable number is maybe a little bit tougher, at least compared to Q2. But what's the outlook on Infra? Is it bigger projects that are more volatile between quarters, or have you seen a shift downwards in Q3? Thanks.

32:26 I think it's what Oscar said when you look into it. It's different between the different businesses in infrastructure, which is reflecting what I just said. Meaning that Design Plan, who is working with mainly public money, being very big in prisons and big in transportation. And that is bigger projects, but they have a very good trend. And I think we see that continue. That's not changing. Then we have a little bit of a tougher market situation in the two others. Although, having said that, we're focusing VACO more on the data centers today, so that should be some positives coming their way, and we see that.

33:12 I think that will have a gradual impact, that will not happen from one quarter to the other. Because as you know, also in many of these projects that we're working with, lead times are quite long, when you go from spec to building. Depending on the markets, you are in at least 18 months time frame.

33:35 All right, thanks. So in Veco, for instance, where you have shifted your focus a little bit to data centers, could you say that there are some of the models we haven't really seen in the order intake yet that you expect to come over the coming, let's say, three to four quarters?

33:53 You know, I never comment on those numbers going forward. So if you just heard what I said, I said these are also spec markets, so there are long lead times. So you will see things happening from one quarter to the other.

34:11 Yeah, thanks. And also Grossmargin Outlook, if there's any possibility to comment on that. I appreciate the comments about, I think it's mixed driven by slightly soft sales in collection and premium and also some utilization. Is there any shift apart from that? Any pressure from higher component costs or freight prices?

34:46 That's also a very good question and there is Pressure on the price in particular when it comes to electronics but also some raw material like aluminium and we are Because of that, we are coordinating the procurement efforts across the group now to strengthen our negotiation power. And we believe that that will help us to mitigate the price increases coming, but also hopefully deliver a little bit more value than just mitigation of the increases.

35:31 So that should have a positive impact on the gross margin going forward. Maybe saying a few words about that we are using the strength of the group in a different way. Yeah, no, but that's true. As Bodil mentioned in the strategy that we communicated back in July, working together is one of the strongest levers we have to really utilize the power of the group, the scalability of being 13 brands. and working together and that should in particular when it comes to procurement have a positive impact when it comes to purchasing power and that is one of the priorities going forward here into next year.

36:17 Perfect thank you and just to follow up on the pricing I can imagine that a lot of your competitors have also quite low volumes. I read some comments on Signify, etc. Do you think that it's tougher to do price increases at the moment, given the low volumes in the market, that competition maybe gets a little bit more fierce?

36:46 I mean, if you look in general, I think that's what you see in what we're saying with the soft market conditions. I mean, everybody's fighting very, very much out there because there is less of a cake to fight around. And then if I think what is positive for us is that we have, you know, we are working very close to our customers. So what you see In our model is that we are working very as I said the benefit of the spec driving is that we are very early in and what is that reflecting that is very much reflecting that we have a premium positioning and I think when you look into premium positioning that is probably a little bit tougher on the big project side but on the other hand I think we have a lot of advantages and I think You have more competition on the entry level than you have in the premium segment. Because I think if you look at those core segments for us, why do customers choose us? They choose us for quality, design, energy efficiency, Sustainability, Service, Project Support and Bespoke Capabilities.

37:58 And I can continue. So I think in that range, there is maybe a little bit less competition than there are on the entry level side of it. And I think, of course, general price increases are maybe more difficult, but I think there is still an understanding when you're passing on costs. But also, as Oscar said and explained, we think we have some more work to do where we can use the power of the group also on the purchasing side. So it's a mix of different parts that you're working on. Our value for the customers, being commercially very close to the customers, and then also working on the purchasing side from our side. So there is not one answer to it, but it's a mix of different points.

38:48 Understood, that's appreciated as well. I just have a final one, if I can just squeeze in a question, maybe a little bit of a long shot, but you talked a little bit about some small divestments, what I interpreted. Can you give some thoughts on the structure? Are you happy with the brands at the moment? Or are you considering divesting any of the brands to get some relief in the balance sheet situation?

39:18 If you look in general, I think what we communicated as part of the strategic program is that we're doing several reviews around the group. And what you saw, the outcome LTS is the first of that. So we are working on different assessments. And as I said before, as soon as we see results of that, we will communicate. That is as far as I can say today. But I mean, there is no option that we're not evaluating.

39:48 Perfect. That was all for me. Thank you very much. Next question from Mats Liss from Kepler Chevrolet. Please go ahead, Mats.

40:00 Thank you. A couple of questions for me as well. First, I mean, the order intake is sort of down, of course, but is it a good proxy there for sales in the fourth quarter? I mean, you mentioned a lot of renovation Maybe that's more of an in-for-out business during a quarter, not so much project related.

40:29 Yes, it's difficult to give you an indication, as I said, the visibility is not super strong. As always, I mean, you've been working with us for a long time. What happens in the coming quarter is a mixture of different impacts from former quarters and what comes into the quarter. So I cannot today tell you what the fourth quarter will look like.

40:58 No, fair enough. And then again, coming back to the financials there and There is something about the seasonality of cash flow in the fourth quarter.

41:21 Last year's fourth quarter, the operating cash flow was really strong. Edwin Roobol On a number of components that goes into the manufacturing process and so we wanted to mitigate that by buying components early and that hopefully should come down now into the fourth quarter and then as I mentioned before about AR the credit days should also come down in Q4 like last year and hopefully then that gives them a Approximately 100 million plus as I mentioned before.

42:23 Great. Then maybe I get some feeling for this restructuring program going on and you sort of sent out the press release there for TF and what you do in Germany. Should we expect more of those or Was that more of a sort of starting point of the process and you won't sort of deliver an update on every step taken in this process?

42:54 I mean, it was like I said before, when we look into the strategic review, LTS was the first one you see and we're driving in another few initiatives and we're looking through the different possibilities. So we will communicate. as soon as we are ready to communicate so on that part and then we will do like this time we'll give a little bit of an update uh in the in the in the conference call but as soon as we take further steps we will let the market know great and and you also heard me saying that i mean this we have the if you remember the 220 million from from um From July was where 100 million was in savings, which we are on track with. And the other ones was the 120 million where LTS is one part of that. And there are other identified, we have identified activities for all of the 120 million. Then we are not entirely depending on ourselves in terms of how we execute that. So therefore we're going to let you know as soon as we can.

44:04 Great. And a couple of more also. First, I mean, it's good to hear that you meet your covenants, but could you say something about what kind of covenants you have?

44:16 I mean, it's the normal ones. It's the ICR and the leverage covenant. So that's what we got from our banks. But I can't comment the level of them.

44:38 I understand. And finally, just Amin mentioned data center being interesting going forward and 60 projects sounds a lot. Then again, yeah, could you say something about the opportunities or states opportunities there in two, maybe two, three years? Two, three year period. Yeah, maybe one.

45:02 I mean, yeah, we're working on different, I mean, we're working on different opportunities. Data centers is one of them. If you look into the market for data centers for lighting in Europe, that's approximately 150 million euros, the market opportunity. Then we are not alone in that market. But I mean, we all know that that's one of the growth markets that's out there. We have more other, when you look into from a little bit longer perspective, I can also share with you one of our key markets, which we've been very good at for a long time, where we see longer term opportunities is healthcare. We see a lot of activity in the healthcare sector. And I mean, you can have a look at that also from your side, we know there are programs in Sweden, there are programs in Norway, there are programs in In the UK, as an example, and also in France.

45:59 And those are in some cases already in the building stage. But as we are in lighting, we come in at the very end of those projects. So that might be multi-year projects that's already ongoing, and we will come in in a bit of a later stage. So that we see. So that is one of the positive sectors, I would say. We also are currently installing, we have a big hospital in France, which is installing on the T&V side that we've been doing for the last couple of months. So if you look at that perspective, there are different markets. We're also working very actively on the retail side. and you know that's been one of our markets in the past.

46:45 We are much more active today with new customers. So we have increased our activity level there. Those are very often sales cycles which go into a tendering process and then you hopefully win those. So it also takes a bit of time before it's happening. But there is, I would say, a very high commercial activity level there, which is positive.

47:15 Yeah, and just about data center once more. I mean, the current product offering that you have and maybe also brand exposure, you don't need any other sort of, well, maybe you need to adapt. You can use the same sales organization that you have.

47:37 Yeah, it's a good question. We have, if you look into the companies or the brands who are involved in that, is Mako. They are the ones selling what we call the light lines, which is the main product that you have into the data centers. And then you have also other parts of a data center, which is mainly done by Whitecroft and Fagerhult. So that's what we also see. We see some trends in terms, which is good for us, that they want to make the data centers nobler, because I think we also know there are quite some discussions around data centers, that they're building them so quickly. What does it look like in the environment afterwards?

48:23 I think that is positive for us. We have started, and that's what we're saying when I say we are getting more European, is that we started the work in the UK because that's where you have the specifiers. And now we need to work more coordinated in the group. So I would say from a product perspective, we have a good solution. We still have some more work to do in making sure we get it out into all our sales organization. And that's what we're working on on a European level.

48:54 Okay, thanks a lot, great.

48:59 Products is, as always, one of our strengths. We have a very good product range in assortments, so we need to make sure we adapt the marketing and the commercial side to new segments. There are no more questions from the telco at this time, so I hand the board back to you, Niklas.

49:20 Well, thank you. Thank you very much. And thank you for your questions. And thank you to all of you joining us today. We appreciate your time and interest in Fargo Group. And we look forward to speaking with you again the next quarter. So thank you.

49:35 Thank you.

49:36 Thank you very much, everyone.