Steelcase Inc (SCS) 2025 Q2 法說會逐字稿

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Steelcase second-quarter fiscal 2025 conference call. (Operator Instructions) Thank you.

早安.我叫羅布，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Steelcase 2025 財年第二季電話會議。 （操作員說明）謝謝。

Mr. O'Meara, you may begin your conference.

奧米拉先生，您可以開始會議了。

Thank you, Rob. Good morning, everyone. Thank you for joining us for the recap of our second-quarter fiscal 2025 financial results. Here with me today are Sara Armbruster, our President and Chief Executive Officer; and Dave Sylvester, our Senior Vice President and Chief Financial Officer.

謝謝你，羅布。大家早安。感謝您與我們一起回顧 2025 財年第二季的財務表現。今天和我在一起的還有我們的總裁兼執行長薩拉·阿姆布魯斯特 (Sara Armbruster)；以及我們的高級副總裁兼財務長 Dave Sylvester。

Our Q2 earnings release, which crossed the wires yesterday, is accessible on our website. This conference call is being webcast, and this webcast is a copyrighted production of Steelcase Inc. A replay of this webcast will be posted to ir.steelcase.com later today.

我們的第二季財報於昨天發布，可在我們的網站上存取。本次電話會議正在進行網路直播，且該網路直播是 Steelcase Inc. 受版權保護的作品。

Our discussion today may include references to non-GAAP financial measures and forward-looking statements. Reconciliations to the most comparable GAAP measures and details regarding the risks associated with the use of forward-looking statements are included in our earnings release, and we are incorporating by reference into this conference call the text of our Safe Harbor statement included in the release. Following our prepared remarks, we will respond to questions from investors and analysts.

我們今天的討論可能包括提及非公認會計原則財務指標和前瞻性陳述。我們的收益發布中包含了對最具可比性的公認會計準則衡量標準的調節以及有關使用前瞻性陳述相關風險的詳細信息，並且我們將通過引用將發布中包含的安全港聲明文本納入本次電話會議。在我們準備好的發言之後，我們將回答投資人和分析師的問題。

I'll now turn the call over to our President and Chief Executive Officer, Sara Armbruster.

現在我將把電話轉給我們的總裁兼執行長 Sara Armbruster。

Thanks, Mike, and hi, everyone. And thanks for joining our call today. I'd like to offer a few remarks explaining how we continue to make progress against our strategy, and I'll cover some of the highlights of our Q2 results.

謝謝麥克，大家好。感謝您今天加入我們的電話會議。我想發表一些評論，解釋我們如何繼續根據我們的策略取得進展，我將介紹我們第二季業績的一些亮點。

As a reminder, our strategy has four pillars. First, to lead the transformation of the workplace. Second, to diversify the customer and market segments we serve. Third, is to improve our profitability. And fourth, to use our business as a force for good.

提醒一下，我們的策略有四個支柱。一是引領職場轉型。其次，使我們服務的客戶和細分市場多樣化。第三，是提高我們的獲利能力。第四，利用我們的業務作為行善的力量。

So let me begin with transformation. At Steelcase, we're deeply driven to understand the changing realities of work that our customers face. And through human centered design research and critical thinking, we uncover insights that lead us to innovation and breakthrough design. As you know, we are constantly monitoring and evaluating how companies approach their work through both Steelcase led research and analysis from top research firms.

讓我從轉型開始。在 Steelcase，我們致力於了解客戶所面臨的不斷變化的工作現實。透過以人為本的設計研究和批判性思維，我們發現了引領我們創新和突破性設計的見解。如您所知，我們透過 Steelcase 主導的頂尖研究公司的研究和分析，不斷監控和評估公司如何進行工作。

For example, Gallup tracks the percentages of exclusively remote, hybrid, and on-site employees. And for eight consecutive quarters, Gallup's data has shown that among US employees and jobs that can be done remotely, more than half are working in a hybrid capacity and their research highlights that hybrid is what the majority of employees prefer.

例如，蓋洛普追蹤完全遠端、混合和現場員工的百分比。蓋洛普的數據連續八個季度顯示，在可以遠端完成的美國員工和工作中，超過一半以混合方式工作，他們的研究強調，大多數員工更喜歡混合方式。

Many organizations have not evolved their physical spaces to address this new reality. These offices still have pre-pandemic designs that don't accommodate hybrid working practices. And some companies who reduce their footprints are finding they may have gone too far and are now evaluating how to add back space in certain areas.

許多組織尚未發展其物理空間來應對這一新現實。這些辦公室仍然採用疫情前的設計，不適合混合工作方式。一些減少佔地面積的公司發現自己可能做得太過分了，現在正在評估如何在某些區域增加空間。

And we also see a really a growing number of companies that are mandating a minimum number of days for in office presence. So organizations, I think, realize that taking a new approach helps employees feel more connected to the company's purpose, its culture and to each other, and Steelcase is a leader helping to solve these big challenges. Our leadership is demonstrated by our strong win rate and our continued market share gains in the Americas over the past year.

我們也看到越來越多的公司規定了最低辦公天數。因此，我認為，組織意識到，採取新方法可以幫助員工感受到與公司宗旨、文化以及彼此之間的聯繫更加緊密，而 Steelcase 是幫助解決這些重大挑戰的領導者。過去一年我們在美洲的強勁勝率和市場份額的持續成長證明了我們的領導地位。

This quarter I've met several customers who are looking to transform their workplaces to increase employee engagement and productivity to help meet their business objectives. For example, one of our largest customers was focused on reinventing their meeting space experience to reflect hybrid working patterns and they were expanding their workstation applications to enable higher levels of privacy.

本季度，我遇到了幾位客戶，他們希望改造工作場所，以提高員工敬業度和生產力，以幫助實現其業務目標。例如，我們最大的客戶之一專注於重塑他們的會議空間體驗以反映混合工作模式，並且他們正在擴展其工作站應用程式以實現更高層級的隱私。

Our Ocular sightline tables and our Campers & Den solutions supported that customer's vision, and I'm excited about the opportunities like this that we see across many market segments where organizations are transforming their workplaces and they find their needs met by Steelcase. And as our sales teams continue to work closely with our largest customers, we are confident we will see higher levels of orders in the back half of this year.

我們的Oural 視線桌和我們的Campers & Den 解決方案支持了客戶的願景，我對我們在許多細分市場中看到的這樣的機會感到興奮，在這些細分市場中，組織正在改造他們的工作場所，他們發現Steelcase 滿足了他們的需求。隨著我們的銷售團隊繼續與最大的客戶密切合作，我們有信心在今年下半年看到更高水準的訂單。

Moving now to diversification. Through the first half of the year, all our customer segments in the Americas have posted year-over-year order growth. In our second quarter, the education segment led this growth with a very strong quarter from our Smith System business, which grew 18% year over year. Smith System supports K-12 customers in the US, and we see strong growth potential in part due to the number of school districts issuing bonds for new construction or modernization.

現在轉向多元化。今年上半年，我們在美洲的所有客戶群都實現了訂單年增。在第二季度，教育部門引領了這一成長，我們的史密斯系統業務季度表現非常強勁，年成長 18%。 Smith System 為美國的 K-12 客戶提供支持，我們看到了強勁的成長潛力，部分原因是許多學區為新建或現代化專案發行了債券。

We recently supported a school district upgraded eight elementary schools where the previous furniture was up to 30 years old. When that district approached us for ideas on collaboration and cost effectiveness, they chose our best-in-class solutions based on the quality of our furniture and our quick and seamless operational support, including our dealers delivering and installation.

我們最近支持一個學區對八所小學進行了升級改造，這些小學的舊家具已有 30 年的歷史。當該地區向我們尋求合作和成本效益的想法時，他們根據我們的家具品質和我們快速、無縫的營運支援（包括我們的經銷商交付和安裝）選擇了我們一流的解決方案。

So in the end, we expect to impact the lives of more than 5,000 kids in that district when they walk into brand new classrooms. And while this is just one example, it represents broader opportunity in the K-12 segment. And in addition to education, we're making progress across all of our diversification efforts, including healthcare, small- and medium-sized businesses, and consumers.

因此，最終，我們預計當該地區 5,000 多名孩子走進全新教室時，他們的生活將會受到影響。雖然這只是一個例子，但它代表了 K-12 領域更廣泛的機會。除了教育之外，我們在所有多元化努力方面都取得了進展，包括醫療保健、中小企業和消費者。

Turning to profitability, our second quarter results reflect strong earnings growth and 2% organic revenue growth. Our adjusted earnings per share of $0.39 was an increase of 26% versus last year, and for the ninth consecutive quarter. We've driven year-over-year gross margin improvement. Our operations leaders continue to drive cost reduction initiatives, which contributed to our growth margin improvement this quarter.

談到獲利能力，我們第二季的業績反映出強勁的獲利成長和 2% 的有機收入成長。調整後每股收益為 0.39 美元，比去年增長 26%，並且是連續第九個季度增長。我們推動毛利率逐年調高。我們的營運領導者繼續推動成本削減計劃，這有助於我們本季的成長利潤率提高。

These operations initiatives included moving production lines to increase efficiency and closing a distribution center to optimize our network. More broadly, our employees continue to find efficiencies in managing our spending and to improve profitability. And these profit improvement efforts are helping enable our investments to support our growth initiatives.

這些營運舉措包括行動生產線以提高效率以及關閉配送中心以優化我們的網路。更廣泛地說，我們的員工繼續尋找管理支出的效率並提高獲利能力。這些提高利潤的努力正在幫助我們的投資支持我們的成長計畫。

As we look at our segment performance, the America's delivered $13 million of adjusted operating income improvement over the prior year and drove 3% organic revenue growth. Our international segment adjusted operating results improved by $2.4 million versus the prior year due to our efforts to reduce our cost structure and to enhance our competitiveness in response to a soft demand environment.

當我們審視我們的細分市場表現時，美洲地區的調整後營業收入比前一年增加了 1,300 萬美元，並推動了 3% 的有機收入成長。由於我們努力降低成本結構並增強競爭力以應對疲軟的需求環境，我們的國際部門調整後經營業績比去年提高了 240 萬美元。

Finally, as we think about our efforts to use our business as a force for good and design better futures for people on the planet, I'm excited to share that we published our Annual Impact Report this week. The report shares goals and recent progress in building a stronger sense of community and belonging in the workplace w. We are committed to helping communities thrive, fostering inclusion, and acting with integrity.

最後，當我們思考如何利用我們的業務作為行善力量並為地球上的人們設計更美好的未來時，我很高興地告訴大家，我們本週發布了年度影響報告。該報告分享了在工作場所建立更強的社區意識和歸屬感的目標和最新進展。我們致力於幫助社區繁榮發展、促進包容性並誠信行事。

One highlight I'll mention from the report is that our employees have volunteered more than 62,000 hours since 2021 toward our goal of 100,000 hours by 2030. Steelcase is also working toward a better future for the planet by reducing its carbon footprint, designing for circularity, and choosing and using materials responsibly. So we continue to pilot new ways to package, ship, and deliver products, and we lead the industry in the number of BIFMA Level-certified products.

我在報告中要提到的一個亮點是，自2021 年以來，我們的員工已經志願工作了超過62,000 小時，以實現我們到2030 年實現100,000 小時工作時間的目標。 、循環設計，為地球創造更美好的未來，並負責任地選擇和使用材料。因此，我們繼續試驗包裝、運輸和交付產品的新方法，並且我們在 BIFMA 級別認證產品的數​​量方面處於行業領先地位。

We now use 40% recycled content on average in all Steelcase brand product packaging. So congratulations to all the employees who have helped Steelcase make meaningful progress toward our people and planet goals as outlined in this year's impact report.

現在，我們在所有 Steelcase 品牌產品包裝中平均使用 40% 的回收材料。因此，恭喜所有幫助 Steelcase 在實現今年影響報告中概述的人類和地球目標方面取得有意義進展的員工。

So I'll close by sharing that our results through the first half of the year are strong. And we remain positive about the progress we continue to make against our strategy to lead the transformation of the workplace, diversify the customer and market segments we serve, improve our profitability, and use our business as a force for good.

最後，我將分享我們上半年的業績強勁。我們對我們在引領工作場所轉型、使我們服務的客戶和細分市場多樣化、提高盈利能力以及利用我們的業務作為正義力量的策略方面繼續取得的進展保持樂觀。

So I'll now turn it over to Dave to review the financial results and our outlook.

現在我將把它交給戴夫來審查財務表現和我們的前景。

Thank you, Sara. And good morning, everyone.

謝謝你，薩拉。大家早安。

Before I get into the financial details, I would like to first acknowledge Budd Bugatch and his unexpected passing in August. Budd worked closely with our industry and Steelcase since becoming a public company 26 years ago, and we benefited from his involvement. His impact on our industry, his advocacy for Steelcase, and his friendship will be missed. Rest in peace, Budd.

在討論財務細節之前，我想先感謝巴德·布加奇（Budd Bugatch）以及他在八月的意外去世。自 26 年前成為上市公司以來，Budd 一直與我們的行業和 Steelcase 密切合作，我們從他的參與中受益。我們將懷念他對我們行業的影響、他對 Steelcase 的倡導以及他的友誼。安息吧，巴德。

The balance of my comments today will start with the highlights related to our Q2 results, balance sheet, and cash flow. I will then share a few remarks about our outlook for the Q3 and some thoughts about the full fiscal year.

我今天評論的其餘部分將從與我們第二季業績、資產負債表和現金流相關的重點開始。然後我將分享一些關於我們對第三季前景的評論以及對整個財年的一些想法。

Our Q2 results finished largely as we expected with our adjusted earnings of $0.39 per share, slightly above the midpoint of the estimated range we provided in June, and our revenue of $856 million slightly below the midpoint of our range. Both of our segments performed largely as expected.

我們第二季的業績基本上符合我們的預期，調整後每股收益為 0.39 美元，略高於我們 6 月份預測範圍的中點，收入為 8.56 億美元，略低於我們範圍的中點。我們的兩個部門的表現基本上符合預期。

During the quarter, we completed the sale of approximately 315 acres of unused land for $44 million, which originated from an unsolicited offer and represented the majority of our unused land. The resulting gain net of related variable compensation expense was excluded from the calculation of adjusted operating income, adjusted earnings per share and adjusted EBITDA. And we have adjusted the non-GAAP measures in the prior periods presented for consistency.

本季度，我們以 4,400 萬美元的價格完成了約 315 英畝未使用土地的出售，這些土地來自主動出價，占我們未使用土地的大部分。由此產生的扣除相關可變薪酬費用的收益不包括在調整後營業收入、調整後每股收益和調整後 EBITDA 的計算中。為了保持一致性，我們也調整了先前期間提出的非公認會計準則衡量標準。

Compared to the prior year, our adjusted operating income was $15 million higher, largely driven by the Americas, which posted 3% organic revenue growth and improved gross margins. The revenue growth was driven by strength from our education business, and volume growth from our large corporate customers and government segment.

與前一年相比，我們調整後的營業收入增加了 1500 萬美元，這主要是由美洲地區推動的，美洲地區的有機收入增長了 3%，毛利率也有所提高。收入成長得益於我們教育業務的實力以及大型企業客戶和政府部門的銷售成長。

The higher gross margins were driven by favorable business mix and benefits from our operational performance and cost reduction initiatives. The international segment improved Q2 adjusted operating results by $2.4 million, compared to the prior year, driven by benefits from the restructuring actions we implemented last year as well as ongoing cost control measures as the demand environment remains soft.

較高的毛利率是由有利的業務組合以及我們的營運績效和成本削減措施帶來的好處所推動的。受我們去年實施的重組行動以及需求環境仍然疲軟而持續採取的成本控制措施的推動，國際部門第二季度調整後經營業績較上年增加了 240 萬美元。

Sequentially, as compared to the Q1, adjusted operating income increased by $40 million driven by a $129 million increase in revenue. And the sequential increase in revenue was driven by normal business seasonality in the Americas, which includes Smith System and other education projects that tend to ship during the summer months.

隨後，與第一季相比，由於收入增加了 1.29 億美元，調整後的營業收入增加了 4,000 萬美元。收入的環比增長是由美洲正常的業務季節性推動的，其中包括史密斯系統和其他傾向於在夏季發貨的教育項目。

As it relates to cash flow in the balance sheet, cash and short-term investments increased $127 million from Q1, driven primarily by $90 million of adjusted EBITDA and the proceeds from the land sale. Our trailing four quarter adjusted EBITDA is $285 million, or 9.1% of revenue, which is 150 basis points higher than the same time frame last year.

由於與資產負債表中的現金流相關，現金和短期投資較第一季增加了 1.27 億美元，這主要是由 9,000 萬美元的調整後 EBITDA 和土地出售收益推動的。我們過去四個季度調整後的 EBITDA 為 2.85 億美元，佔營收的 9.1%，比去年同期高出 150 個基點。

Our liquidity aggregated to $507 million at the end of the quarter, which exceeded our total debt of $447 million. We repurchased approximately 200,000 shares in the second quarter or approximately 1.7 million shares over the first half of the fiscal year. When aggregated with our quarterly dividend of $0.10 per share, we've returned approximately $45 million to shareholders in the first six months of fiscal 2025.

截至本季末，我們的流動性總計達 5.07 億美元，超過了 4.47 億美元的總債務。我們在第二季回購了約 20 萬股股票，在本財年上半年回購了約 170 萬股股票。加上每股 0.10 美元的季度股息，我們在 2025 財年的前六個月向股東返還了約 4,500 萬美元。

Orders in the quarter were down modestly compared to the prior year with 3% growth in the Americas and an 11% decline in international. Q2 marks the fourth consecutive quarter of year-over-year order growth in the Americas.

與前一年相比，本季訂單略有下降，美洲訂單成長 3%，國際訂單下降 11%。第二季標誌著美洲訂單連續第四個季度同比增長。

The order growth in the Americas was led by our government, education and healthcare customer vertical markets offset in part by a decline in orders from our large corporate customers after several quarters in a row of strong year-over-year growth.

美洲的訂單成長主要由我們的政府、教育和醫療保健客戶垂直市場帶動，但在連續幾個季度同比強勁增長後，我們的大型企業客戶訂單的下降部分抵消了這一增長。

Our project business grew in Q2, while our continuing business or day-to-day orders declined. We believe the growth in our project business is reflective of how we are leading the transformation of the workplace, as evidenced by our strong win rates and estimated market share gains over the last year in the Americas.

我們的專案業務在第二季度有所成長，而我們的持續業務或日常訂單則有所下降。我們相信，我們專案業務的成長反映了我們如何引領工作場所轉型，去年我們在美洲的強勁勝率和預計市場份額的成長就證明了這一點。

We expect year-over-year order growth from our largest customers to return in the back half of fiscal 2025. The order decline in international was driven by declines in most of our major markets with the exception of India, where we continue to see strong growth.

我們預計，來自最大客戶的訂單將在 2025 財年後半段恢復同比增長。

Turning to the outlook for the third quarter, our overall backlog is approximately flat, compared to the prior year and contained a higher percentage of orders expected to ship within 90 days compared to the prior year. We expect to report revenue within a range of $785 million to $810 million, which would reflect 1% to 5% organic growth compared to the prior year.

談到第三季的前景，我們的總體積壓訂單與去年同期基本持平，與去年同期相比，預計 90 天內出貨的訂單比例更高。我們預計報告收入將在 7.85 億美元至 8.1 億美元之間，這將反映出與前一年相比 1% 至 5% 的有機成長。

As it relates to earnings, we expect to report adjusted earnings of between $0.21 and $0.25 per share, which compares to $0.29 in the prior year, which included approximately $0.09 of estimated benefits related to the reversal of an accrued earnout liability and gains from the sale of fixed assets.

由於與收益相關，我們預計調整後每股收益將在 0.21 美元至 0.25 美元之間，而上一年為 0.29 美元，其中包括與應計盈利負債沖銷和出售收益相關的約 0.09 美元的預計收益固定資產。

In addition to the projected range of revenue, the adjusted earnings estimate includes gross margin of approximately 32.5% to 33.0% and operating expenses of between $225 million to $230 million, which includes $4.3 million of amortization related to purchase intangible assets.

除了預計的收入範圍外，調整後的獲利預測還包括約 32.5% 至 33.0% 的毛利率和 2.25 億至 2.3 億美元的營運費用，其中包括與購買無形資產相關的 430 萬美元攤銷。

Lastly, we expect interest expense and other non-operating items to net to approximately $2 million of expense, and we're projecting an effective tax rate of approximately 27%. We continue to have confidence of potentially achieving the higher end of the range of our fiscal 2025 adjusted earnings per share targets that we communicated in March.

最後，我們預計利息支出和其他非經營項目淨支出約為 200 萬美元，並且我們預計有效稅率約為 27%。我們仍有信心實現我們 3 月傳達的 2025 財年調整後每股盈餘目標範圍的上限。

However, it's important to note a few factors which could impact how our results play out in the second half of the year, including the timing of project orders and requested delivery dates related to high confidence opportunities with our largest corporate customers in the Americas could play out differently than projected.

然而，重要的是要注意一些可能影響我們下半年業績表現的因素，包括與我們在美洲最大的企業客戶可能發揮的高信心機會相關的項目訂單的時間和要求的交付日期與預計的不同。

And secondly, we anticipate going live on our new ERP system at the start of next fiscal year, and managing through the cutover could have the effect of our customers and dealers, requesting shipments earlier in advance of the cutover, pulling business from Q1 of next year into Q4, or requesting shipments after the cutover pushing business from Q4 into Q1 of next year.

其次，我們預計新的ERP 系統將在下一財年年初上線，透過切換進行管理可能會對我們的客戶和經銷商產生影響，要求在切換前提前發貨，從而從下一季第一季開始拉動業務或要求在割接後發貨，將業務從第四季度推至明年第一季。

In summary, we feel good about our financial results through the first half of the year, as well as our outlook for the Q3. And as Sara said, we believe our strategy is working, and we're continuing to make progress on our most important initiatives.

總而言之，我們對上半年的財務業績以及第三季的前景感到滿意。正如薩拉所說，我們相信我們的策略正在發揮作用，我們將繼續在最重要的舉措上取得進展。

From there, we'll turn it back to the operator for questions.

從那裡，我們會將其轉回給操作員詢問問題。

(Operator Instructions) Greg Burns, Sidoti.

（操作員說明）Greg Burns，Sidoti。

Good morning. Could you just talk about a little bit more about your commentary around corporate orders picking up in the second half? Maybe what are you seeing in terms of maybe some of your pipeline metrics that gives you confidence in that outlook?

早安.能否再多談談您對下半年企業訂單回升的評論？也許您在某些管道指標方面看到了什麼，讓您對這一前景充滿信心？

Yeah. I mean, Greg, when we look at what happened in the Q2, it's really related to our largest corporate customers. And we manage them with a sales team that's really wired towards serving these accounts globally. And when we talk to the leadership of that group as well as the leadership in the Americas, what they're feeling is quite confident about the balance of the year and their pipeline.

是的。我的意思是，格雷格，當我們看看第二季發生的事情時，它確實與我們最大的企業客戶有關。我們透過一支真正致力於在全球範圍內為這些客戶提供服務的銷售團隊來管理它們。當我們與該集團的領導層以及美洲的領導層交談時，他們的感覺是對今年的平衡及其管道非常有信心。

What didn't play out in the quarter was that the orders that we were expecting to come in, came in on schedule. So we're they're still quite confident in the pipeline for those customers. They just think the timing is pushed out a little bit toward the back half of the year.

本季沒有發生的是我們預期的訂單沒有按計劃到達。因此，我們對這些客戶的管道仍然充滿信心。他們只是認為時間被推遲了一點，到今年下半年。

All right, thanks. And then, in terms of OpEx for the quarter came in pretty significantly lower than I guess you were guiding for going in. Could you just talk about maybe what drove that? And are those the permanent cuts that you're making or maybe temporary variable cuts that might come back in?

好的，謝謝。然後，就本季度的營運支出而言，我猜您的預期要低得多。這些是你正在做的永久性削減，還是可能會回來的臨時性可變削減？

I think if you take OpEx and you add back the gain net of the variable compensation, you'd see that our OpEx was pretty close pretty closely in line. So make sure you're adding back the net gain, which is shown in the back of our release in our reconciliation of GAAP to non-GAAP.

我認為，如果您將營運支出加上可變補償的淨收益，您會發現我們的營運支出非常接近。因此，請確保您添加了淨收益，該淨收益顯示在我們發布的後面的 GAAP 與非 GAAP 調整表中。

Okay. I'll do that. Thank you.

好的。我會這麼做的。謝謝。

Steven Ramsey, Thompson Research Group.

史蒂文·拉姆齊，湯普森研究小組。

Hi. Good morning. Good to see the continued solid margin improvement in the business again. Wanted to think about the FY25 range and maybe even beyond that for your midterm targets. How much flexibility do you have to land in these ranges based on your cost and efficiency moves versus solely just orders and volumes coming through?

你好。早安.很高興看到該業務的利潤率再次持續穩健改善。想要考慮 25 財年的範圍，甚至可能超出中期目標的範圍。根據您的成本和效率變動，與僅通過訂單和數量相比，您在這些範圍內需要有多大的靈活性？

I would say it's balanced between the two. I mean, we have some work yet to complete to drive additional margin improvements. We've also got the readiness for the ERP cutover that will play out. But a big driver is the timing of the orders related to these large corporate customers. That's probably the biggest variable and how we'll finish the fiscal year.

我想說的是兩者之間是平衡的。我的意思是，我們還有一些工作尚未完成，以推動利潤率進一步提高。我們也為即將進行的 ERP 切換做好了準備。但一個重要的推動因素是與這些大型企業客戶相關的訂單的時間表。這可能是最大的變數以及我們將如何結束本財年。

Okay. That's helpful. And then just thinking about win rates being strong share gains in Americas, does this point to incrementally rising win rates? Or would you describe it more as steady, maybe just to put the two in context, so we're thinking about your success there correctly?

好的。這很有幫助。然後，只要考慮美洲的獲勝率強勁的份額成長，這是否意味著獲勝率逐漸上升？或者您會將其描述為穩定，也許只是將兩者放在上下文中，以便我們正確地考慮您在那裡的成功？

Well, they're pretty high. I mean, I don't know that I have win rates that go back in time to know that these are record levels or anything like that, but they are definitely above our target. They are running higher than they have been in previous years. They're not -- I wouldn't say they're at extraordinary levels, but they're resulting in us gaining share at least based on the industry information that we see out of BIFMA. It suggests that we are gaining market share from these win rates in the Americas.

嗯，他們的水平相當高。我的意思是，我不知道我的勝率可以追溯到過去，知道這些是創紀錄的水平或類似的水平，但它們絕對高於我們的目標。他們的表現比前幾年更高。我不會說它們處於非凡的水平，但至少根據我們從 BIFMA 看到的行業信息，它們使我們獲得了份額。這表明我們正在從美洲的這些勝率中獲得市場份額。

Okay. That's helpful. Lastly for me, on the expected large corporate rebound in the second half, maybe can you give a flavor for how that business looks? Does it reflect kind of the general trend of improvement that you've seen in project business over the past half year to year? Or is the flavor of what those wins could look like? Is it different than what we've seen?

好的。這很有幫助。最後對我來說，關於預計下半年大型企業的反彈，也許您能介紹一下該業務的情況嗎？這是否反映了過去半年您在專案業務中看到的整體改善趨勢？或者這些勝利的味道是什麼？是不是跟我們看到的不一樣？

I don't think it is different. What's important to remind you of is project business did grow in the quarter year over year. It was continuing business that was down. And because of where we are in the recovery from the pandemic, continuing business is a larger share of our order than it typically is.

我不認為有什麼不同。需要提醒您的重要一點是，該季度的專案業務確實比去年同期成長。持續下降的業務。由於我們正處於從大流行中恢復的階段，因此持續業務在我們的訂單中所佔的比例比平時更大。

You have heard us talk in the past that you can generally think of a 40/40/20 split between continuing project business and then our marketing programs that are basically programs for customers that don't have agreements with us. And it's not running 40/40/20, because project activity is restarting after being shut off at the bottom of the pandemic.

您過去曾聽我們說過，您通常可以認為持續專案業務和我們的行銷計劃之間的比例為 40/40/20，這些計劃基本上是為未與我們達成協議的客戶提供的計劃。而且它不會在 2020 年 40 月 40 日運行，因為專案活動在大流行底部關閉後正在重新啟動。

So we like the growth rate that we're seeing in project activity. I'm not sure why continuing was off a little bit versus the prior year. But because it is the majority of our orders now, as project is rebuilding, the fact that it was down a little bit influenced the overall trajectory of the large corporate business.

因此，我們對專案活動中看到的成長率感到滿意。我不知道為什麼繼續比前一年有點偏離。但由於它是我們現在的大部分訂單，隨著專案的重建，它的下降一點點影響了大型企業業務的整體軌跡。

But it's also important to note that large corporate is ahead on a year-to-date basis. They grew nicely in Q1 and declined in Q2, and they are ahead for Q1. We've speculated that there could have been -- excuse me, some pull forward business into Q1 from some of our largest customers that were migrating to more recent price lists.

但同樣重要的是要注意，大公司今年迄今處於領先地位。他們在第一季成長良好，在第二季度有所下降，並且在第一季度處於領先地位。我們推測，可能會有——請原諒，我們一些最大的客戶將業務提前到第一季度，這些客戶正在遷移到更新的價目表。

They may have pulled some business forward in advance of that, which could have contributed to the strength in Q1. I don't know that for sure, but we're not concerned about what we're seeing in large corporate right now.

他們可能在此之前提前推進了一些業務，這可能有助於增強第一季的實力。我不確定這一點，但我們並不關心我們現在在大公司中看到的情況。

No. And maybe I would just add to that a little color, anecdotally. I mean, I continue to meet with customers even just who I can think of earlier this week, where they are here, they are visiting, they're talking to us, and they have significant projects in the pipeline. So I think those kinds of conversations and the traffic we see in work life centers and just those, that ongoing interest to make changes is additional color that helps us feel a sense of confidence.

不。我的意思是，我繼續會見客戶，甚至只是本週早些時候我能想到的客戶，他們在這裡，他們正在拜訪，他們正在與我們交談，他們正在醞釀重大專案。因此，我認為我們在工作生活中心看到的此類對話和交通以及不斷做出改變的興趣是幫助我們感受到自信的額外色彩。

Okay. That's excellent color. Thank you.

好的。那是極好的顏色。謝謝。

Reuben Garner, Benchmark.

魯本·加納，基準。

Thank you. Good morning, everybody. Wondering if you could kind of touch on some of the growth drivers that you're seeing outside of large corporates, just given that that you still grew orders in the Americas despite some of that near term pressure. You mentioned education, any of the others doing particularly well, and kind of what -- what do you think is driving that? How much runway do you have to go there?

謝謝。大家早安。想知道您是否可以談談您在大公司之外看到的一些成長動力，儘管存在一些短期壓力，但您在美洲的訂單仍在增長。你提到了教育，其他方面做得特別好，以及你認為是什麼推動了這一點？去那裡需要多少跑道？

Well, from the last couple of years that we're investing in these areas, these vertical areas of health, education, small to midsized businesses. We also are attentive to government. There are a lot of nice opportunities in the government segment. And our team is doing a terrific job competing for business in that sector as well.

嗯，從過去幾年來看，我們在這些領域進行投資，這些垂直領域包括健康、教育、中小企業。我們也關注政府。政府部門有很多很好的機會。我們的團隊在該領域的業務競爭中也表現出色。

Now, it's not necessarily a big diversification play for us because we've been there historically, but we are emphasizing it a little bit more recently because of the opportunity and the strength of that sector. Education, I think, has had a lot of opportunity as schools need to, I would say, modernize from the way that they're built.

現在，這對我們來說不一定是一次大規模的多元化投資，因為我們歷史上就曾經歷過這種情況，但由於該行業的機會和實力，我們最近更加強調這一點。我認為，教育有很多機會，因為我想說，學校需要從建立方式現代化。

Sara gave a good example of a school that she recently visited that we won. Healthcare needs to modernize and change as well, and we're participating in that. Maybe, I'll just let Sara jump in and share some comments about the diversification areas as well.

薩拉舉了一個很好的例子，她最近參觀了我們贏得的一所學校。醫療保健也需要現代化和變革，我們正在參與其中。也許，我會讓 Sara 介入並分享一些關於多元化領域的評論。

Yeah. No, I think, Dave, you covered it well. And I would just add that these are markets that we focus on because we do believe there's opportunity in the market for all the reasons Dave just said.

是的。不，我認為，戴夫，你說得很好。我想補充一點，這些是我們關注的市場，因為出於戴夫剛才所說的所有原因，我們確實相信市場上有機會。

And as Dave also mentioned, we've really focused our investments to say where do we need to build our capabilities, where do we need to continue to push innovation, where do we need to bring new kinds of solutions that are relevant to those clients' needs to the market.

正如戴夫還提到的，我們真正將投資重點放在哪裡，我們需要在哪裡建立我們的能力，我們需要在哪裡繼續推動創新，我們需要在哪裡提供與這些客戶相關的新型解決方案' 市場需求。

So kind of the mix of what those things we're doing and those investments look like are a bit different for each of those segments depending on what we think is going to allow us to direct growth the fastest, but we continue to be focused on making sure that we're innovating and really being responsive to what we see happen in those markets to be able to win.

因此，我們正在做的事情和投資的組合對於每個細分市場來說都有點不同，具體取決於我們認為什麼能讓我們以最快的速度實現成長，但我們繼續專注於確保我們不斷創新並真正對我們在這些市場中看到的情況做出反應，以便能夠獲勝。

Great. And then, our survey of the dealers had a nice balance recently in the last couple of months, it's had pretty strong numbers out west just given how concentrated the technology industry is out there and how kind of depressed that markets been. I was wondering, if you had any color there and any other verticals that jump out to you as being opportunities or potential areas of risk in the coming quarters would be great.

偉大的。然後，我們對經銷商的調查在過去幾個月中取得了很好的平衡，考慮到科技業的集中度以及市場的低迷程度，西部地區的經銷商數量相當強勁。我想知道，如果你有任何顏色，以及任何其他垂直領域，作為未來幾季的機會或潛在風險領域，那就太好了。

On your survey, Reuben, Mike and I have actually been waiting to see a little bit of a bump from the West Coast. So it was nice to finally see it. And the reason we are waiting to see it is our internal information as well as intel we get from our dealers on the West Coast is that tech is starting to wake up a bit.

根據你們的調查，魯本、麥克和我實際上一直在等待西海岸的一點進步。所以很高興終於看到它。我們等待看到它的原因是我們的內部資訊以及我們從西海岸經銷商那裡獲得的情報，因為科技正在開始覺醒。

I mean, you've seen recent news about Amazon now expecting five days in the office. Other large tech companies have made similar moves. And some of them too have realized that they've reduced their space a little bit too much during the pandemic, especially as they want to move to a higher number of days in the office by their people. So the activity levels that are shaping up for next year on the West Coast are actually starting to look pretty interesting.

我的意思是，您已經看到有關亞馬遜現在預計在辦公室工作五天的最新消息。其他大型科技公司也採取了類似措施。他們中的一些人也意識到，在疫情期間，他們的空間減少了太多，特別是因為他們希望員工在辦公室待更多天。因此，西海岸明年的活動水平實際上開始看起來非常有趣。

In Southern California, we've been pretty busy there for a while. Our dealer and sales team has been competing for a lot of good business, not necessarily all in tech, but across the different vertical markets. So I'm glad that the dealers are finally starting to acknowledge in your survey that the mid to near term outlook is improving.

在南加州，我們已經在那裡忙碌了一段時間。我們的經銷商和銷售團隊一直在爭取大量良好的業務，不一定都是在技術領域，而是在不同的垂直市場。因此，我很高興經銷商終於開始在您的調查中承認中短期前景正在改善。

Great. Last one for me. I'm going to speak one more in. The international segment, obviously, a little bit challenged macro-wise outside of India this quarter, but just a quick overview of what's going on there and kind of your internal progress?

偉大的。最後一張給我。我要再談一談。

Yeah, no. I think that's right. I mean, you're right that the environment in many of those markets is challenged, but it really varies by markets. So, I think, we've continued both across our EMEA business and APAC to try to maintain a really balanced focus on how we continue to shift our focus and investments and energy toward places where we see strong opportunity to grow.

是的，不。我認為這是對的。我的意思是，你說得對，許多市場的環境都面臨挑戰，但情況確實因市場而異。因此，我認為，我們在歐洲、中東和非洲地區和亞太地區的業務中繼續努力保持真正平衡的重點，即如何繼續將我們的重點、投資和精力轉移到我們認為有強大成長機會的地方。

I was in India a couple weeks ago and it was just incredible to see the amount of activity and to talk to customers and everything from I'll say local, more local Indian organizations that are doing exciting things to major multinational companies that are continuing to drive investment in India. So we feel really good about that.

幾週前我在印度，看到如此多的活動並與客戶交談以及一切，我會說當地的、更當地的印度組織正在做令人興奮的事情，而大型跨國公司正在繼續推動對印度投資。所以我們對此感覺非常好。

But at the same time, we know that the market realities are different. So we also continue, I think, to be really disciplined about how do we drive efficiency, how do we work on margins, how do we reset things in the business where we have the opportunity to do so to make sure that we are continuing to drive further profit improvements the way that we have year over year in this quarter.

但同時，我們知道市場現實是不同的。因此，我認為，我們也繼續嚴格遵守如何提高效率，如何提高利潤率，如何在有機會的情況下重新調整業務中的事物，以確保我們繼續推動本季利潤與去年同期相比進一步提高。

Thanks for the color guys and good luck through year end.

感謝各位的配色，祝年底好運。

Brian Gordon, Water Tower Research.

布萊恩‧戈登，水塔研究中心。

I just wanted to follow up on the success that you guys are having with government education and the healthcare markets. When you look at these, well, first of all, do you think that there's evidence that you guys are gaining share in this area, in these areas? Then secondly, how big a part of the business, do you see this getting over the next several years?

我只是想跟進你們在政府教育和醫療保健市場方面的成功。當你看到這些時，首先，你認為有證據顯示你們正在這個領域、這些領域中獲得份額嗎？其次，您認為未來幾年這將佔業務的比重有多大？

Regarding your question on market share, we don't get data by vertical market across the industry. So, we don't really know. What we presented at our Investor Day, I guess 18 months ago or so, it was in the spring a couple years ago, is we showed what the mix of our Americas business looked like by vertical in 2020, fiscal ‘20, or calendar ’19.

關於你提到的市佔率問題，我們沒有獲得整個產業垂直市場的數據。所以，我們真的不知道。我們在投資者日上展示的內容，我猜是 18 個月前左右，也就是幾年前的春天，我們展示了 2020 年垂直行業、20 財年或 2020 年美洲業務的組合情況。 。

What it looked like in the most recent year that we had just completed, and how it could continue to play out if we're successful in executing our strategy of diversification. And what you would note from those charts, Mike can, walk you through them maybe offline, but what you would note from them is it is a pretty meaningful component of our business.

我們剛完成的最近一年的情況如何，以及如果我們成功執行多元化策略，它將如何繼續發揮作用。你會從這些圖表中註意到什麼，麥克可以帶你離線瀏覽它們，但你會從它們中註意到它是我們業務中非常有意義的組成部分。

Historically, large corporate has been, I think more than 50%, and we are acknowledging that it has, it could potentially be less than 50%, because it may not recover to the same level it was pre pandemic. And therefore, we're investing more aggressively in diversification.

從歷史上看，我認為大型企業的比例一直超過 50%，我們承認它確實如此，但可能會低於 50%，因為它可能無法恢復到疫情前的水平。因此，我們正在更加積極地進行多元化投資。

And these markets have, as Sara said, nice growth potential. We were making progress through that time period, and we've continued since, but it has the potential to be quite interesting in magnitude of our overall revenue.

正如薩拉所說，這些市場具有良好的成長潛力。我們在那段時間取得了進展，並且從那時起我們一直在繼續，但它有可能在我們的整體收入規模上非常有趣。

And is there a similar opportunity that you guys see on the horizon for international?

你們在國際舞台上看過類似的機會嗎？

I think some of the sectors have opportunity. We're investing a little bit more in education both in Asia-Pacific and in Europe as we see opportunities there, healthcare is pretty diversified, and I would say more challenging to make a significant progress or to find a scale a way scaled way to go after it, at least to-date.

我認為有些行業有機會。我們在亞太和歐洲的教育方面加大了投資，因為我們看到了那裡的機會，醫療保健相當多元化，我想說，要取得重大進展或找到一種規模化的方式來實現這一目標更具挑戰性。

So, we're playing in that space, but not as aggressively as we are in the Americas. And I would say, really in Europe, a big part of our business has historically been small to medium sized businesses or -- and which is often more dealer led, and we've been fairly successful in that part of the business.

因此，我們正在這個領域開展業務，但不像在美洲那樣積極。我想說，實際上在歐洲，我們業務的很大一部分歷來都是中小型企業，而且通常更多是經銷商主導的，我們在這部分業務中相當成功。

Where we're really, I would say, focused in Europe right now is how do we win a larger share of the larger corporate business in that market. We do okay, but as the industry leader we feel we should be doing better, and that's an area of emphasis that we've been targeting.

我想說，我們現在真正關注的是歐洲，我們如何在該市場的大型企業業務中贏得更大的份額。我們做得還不錯，但身為產業領導者，我們覺得我們應該做得更好，這是我們一直關注的重點領域。

And recently, the team has had a couple of nice breakthroughs. Their win rates are starting to improve on large opportunities in Europe, and it's starting to show up in some sequential improvement in their pipeline. So we're pleased with that progress as well.

最近，該團隊取得了一些不錯的突破。他們在歐洲的巨大機會中的勝率開始提高，並且開始在他們的管道中出現一些連續的改進。因此，我們也對這項進展感到滿意。

Great. Thank you very much for that additional color.

偉大的。非常感謝您提供的額外顏色。

No problem.

沒問題。

And there are no further questions at this time. Ms. Armbruster, I turn the call back over to you.

目前沒有其他問題。 Armbruster 女士，我將電話轉回給您。

So, thank you all for joining today. We appreciate your interest in Steelcase and hope you have a great day.

所以，感謝大家今天的加入。我們感謝您對 Steelcase 的興趣，並希望您度過愉快的一天。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。