Good morning, this is the conference call operator. Welcome, and thank you for joining the First Quarter, 2025 Financial Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Nicola Sautto, Group CFO of Biesse. Please go ahead, sir. Good morning. With me is Sandro Vitale, our Chief of Strategy. We can start the meeting. I will go through the presentation, then I will leave the space for your questions. In the first slide, we have the group worldwide presence, so the Biesse Group is present in more than ninety markets, with three main sites for manufacturing. We closed the first quarter with three thousand eight hundred, more or less, employees all over the world. Our key market is the EMEA, with the total weight of 64% on the total sales of the quarter, and the second market is the North and South America with the 22%. In the next three slides, we try to put together some of the key topics of the markets. Unfortunately, our market performed very bad in the last three months. Since, honestly speaking, since 2023, we saw a significant decrease in the order and the instability of the last three months, and the uncertainties due to the evolution of the geopolitical context produced some several drop in the market. Also, the tariff policies obviously did not help us in performing well, specifically in the U.S. market. So, just to give you some numbers, in 2024, the wood market decline of 60%, the Chinese companies increased their market share and become more aggressive in the international markets. In the first two months of the year, the export globally decreased by 24%, and Italy losing the 4% of its market shares, compared to China that gain 8%. In the glass and stone market, decrease was 7% in 2024, and in the first two months of the year, the export dropped of roughly 22%. For the first time in the life, China will become the first exporters in the glass sector. And And Italy lose the its first position, the historical first position. Our market is not performing in a very bad way, so our performance as Biesse Group were significantly dropped by this condition. You can see these eight key highlights that we put in the presentation. The first is the sales. So our turnover for the first three months was EUR 153 million compared to last year, with a significant drop of EUR 42 million. The EBITDA adjusted was EUR 4.4 million, compared to last year, 16.8, so declining of EUR 12.4 million. Net result was negative of EUR 2.8 million, and these are the first three key highlights, obviously, negative key highlights. The next four key highlights are positive in our analysis. The first point is the order intake. As you can see, we closed the first quarter with roughly 4% increase in the order intake, EUR 6 million more compared to last year. This increase was due to the performance of the last seven days of March, because in the first two months and a half, our order intake was lower than last year. So we adjusted our production, our structure, our organization, due to a significant reduction in the order intake in the first two months and a half. Then we gain an increase in terms of order intake only in the last ten days of March. If we look this number in April, just to give you an update on the current trading, our order intake in the first four months are EUR 9 million behind last year. It's not a significant drop, but we are less than last year of roughly EUR 9 million. Our backlog remain very strong, and compared to December, we closed the quarter with more than EUR 30 million compared to December. Due to the fact that the order more or less was stable compared to last year and the significant drop in sales, our backlog was higher compared to December. The headcount is 3,800 people, 140 less compared to December, and 440 people less compared to last year. This is the process that Biesse started two years ago, and we will need to continue to rightsize our structure, to align our structure to the new strategy of the company. The other positive, in a certain way, positive KPI, is the inventory. The inventory, as you can see, is higher compared to December, of EUR 10 million. This means that sooner or later, this inventory will transform in sales, but this is also a negative indicator, means the fact that in the first three months of the year, many machines sold, so machines ordered by a client and paid by the client, the client decide to not receive the machine in his factory, paying the last installment of the payment. So for us, is a down payment, but we cannot transform this payment in the sales. So we saw this trend in the first three months. This trend is very key point due to the fact that our inventory is higher than December, and we are not able to transform our inventory in the sales due to the difficulties of the client to pay the last installment of the machines. The last indicator is the net financial position. The net financial position remain positive at the level of EUR 5 million, compared to EUR 25 million in December, so a significant drop compared to December, but still positive by the end of March. If we look this number in April, our net financial position in April is more or less EUR 10 million positive. In the next slide, we can see the chart of the P&L. I already described the key numbers, so I will go through the next slide, and is the bridge of the sales. Here you can see the reason of the significant drop in sales. Machine lines, EUR 39 million, is the majority of our drop. This 39 million, as you can see in the chart below, is EUR 18 million due to the wood sector, seven million, more or less, to the glass, 10 million to the stone, so and three million to the Materia. All our Materia in the first three months performed worse than the last year. In terms of area, the significant drop was for the EMEA, EUR 23 million, and Americas, 14 million, 13 million, sorry. In terms of country, as you can see, the worst three countries was U.S., and due to the tariff, and uncertainty, after the election of President Trump, Italy, and then France. So these are the three major countries with the most significant drop in terms of sales. We put also the three best countries, but for us, Taiwan, Nordic area, so the European Nordic area, and Korea are very, very small markets. In the next slide, I put the bridge for the Q1 result versus the last year, so it's easy to understand that the red brick is due to the significant reduction in sales, and this is the volume and margin effect. We compensated this negative effect with a significant reduction in terms of OpEx and staff cost, or labor cost, so EUR 2.4 million less in terms of OpEx, and EUR 3.8 million less in terms of staff cost. Then we have other positive numbers that are financial due to the positive effect of the exchange rate and taxes, due to the fact that the pre-tax result is lower than last year. We try to compensate with the reduction in terms of G&A and labor cost, but obviously, the significant drop in sales in the first three months was too high to compensate, to net it by this action put together by the group. In terms of headcount, I already described the situation. We closed the quarter with three thousand eight hundred and thirty people, with a significant reduction compared both December and March to last year. This is a key project for the group, because we need to adjust and right-size our structure to the strategy of the group. Also, after considering the acquisition of last year, the GMM Group. In terms of balance sheets, I only want to underline the fact that our inventory is higher compared to December, as I already described, and our net financial position remain stable, remain positive, even if with a significant decline compared to December. The other line of the net working capital is more or less stable. As you can see, the trade receivables, trade payables and contract liabilities, so these, the down payments for the machine are more or less the same compared to December, and more or less align the net working capital this year compared to last year. The last slide is related to the three-year plan. The group decided to withdraw the plan, but not the strategic guidelines in the plan, which remain confirmed, and the group will continue to pursue with these guidelines. We decided to withdraw the economic and financial targets that we putted in the plan, due to the fact that the scenario in which Biesse is working and is playing now is very difficult scenario, so it's not easy for us to forecast. And so we need to withdraw the plan, but not once again, not the strategic decision and guideline in the plan, only the economic targets. I close my, t his is the end, so if you want to put some questions, please go ahead. This is the conference operator. We will now begin the question-and-answer session. Anyone who wishes to ask a question, may press star and one on the touch tone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question, may press star and one at this time. The first question is from Arturo Lopez Vaiani, from Clear Value Advisors. Please go ahead, sir. Yes, good morning. Thanks for the opportunity of the questions. Perhaps you can help us to better understand the quality of the backlog. That would be my first question, and the second question which I have is, you launched a restructuring plan. Can you update us on that and what are we at this stage on the plan? That would be the second question. Third one is basically, you withdrew your three-year plan. Perhaps you might wanna share, sort of, with lower visibility, what do you expect at this point for the year, in terms of, I would say, clients' demand? From a qualitative point of view, what are you currently seeing? That would be great. Thank you very much. Okay, so Sandro Vitale speaking. Good morning, thanks for the question. So, I start to most of your questions, I go one by one. On the quality of the backlog, I think I recall what Mr. Sautto just mentioned. So basically, the fact that despite the backlog itself is at record high, I would say, because it's almost close to EUR 300 million, which is a significant number. On the other side, we face trouble in the invoicing phase, which is more an invoicing trouble, more than a cash trouble, in the sense that these reflect the difficulties of a portion, a significant portion of the customer base to access to financial to credit, basically, and to financial. In certain markets, mentioning, for example, Italy, which, where we have a significant exposure, this is related to public financing so for the Italian speaking people connected is mainly related, where we have, let's say, a significant backlog, not even registered, as is not even accessible to financing for the customer. So let's say that the customers are there, but their capability to access the credit is no doubt deteriorated compared to the previous three years. This reflects the trend that the reality is not new. We have seen this, but in the first quarter was definitely deteriorated. Remembering that our customer base is largely composed by small, medium customers, is completely different, the situation on the large customers, where basically, whoever is investing in a line, and Biesse is also active in the business of integrated lines, is more keen to invest and follow the investment plan already in the pipeline, which where we didn't see a deterioration. Clearly, on the other side, the U.S. situation is completely different, in the sense that in the first three months, we have noticed a really a sentiment, a negative sentiment in the market from the customers in terms of. More waiting mood, I would define, which affected the entire market, and is still without a clear situation and the impact on the tariff, as a matter of fact, we don't really know what's going to happen, but no doubt that the U.S. is one of the critical points. I go on to the second question, so you asked about the restructuring plan. I will not define a restructuring plan, but I would reiterate what has been stated in the public notice and what Mr. Sautto just mentioned, that the company decide to withdraw the financial target, given the current situation and environment. But we continue and we accelerate on the strategic guidance of the plan, so on the progress related to the strategic plan, which are publicly available, and, in reality, we will accelerate on that. That means, especially on the right-sizing of the company, related to improving the process and streamlining the process and the organization, and, as well, on the footprint areas, on industrial footprint, we will continue with the activities of optimization, rationalization, and, let's say, multi-material footprint, in a way that we will streamline and optimize the production sites around the world. So, this, let's say that our plan is by the middle of 2026 to complete the number of projects that were highlighted in the strategic plan, 2024, 2026. The last question. On this point, if I may, the restructuring cost, or how to say, there is the streamlining cost that you mentioned. Can you confirm the size of it for this year? We, in 2024, we had in the financial statement more or less EUR 11 million of restructuring provisions. So we consider- Mm. Enough to cover all the actions that we need to put in place for 2025. So we should not expect any further restructuring provisions for 2025? Not higher than 20 on what we stated on 2024. Okay. Okay, and then the last point was on the three-year plan expectation, which I read. Yeah, so we decided to withdraw based on the fact that also other bigger company compared to us decide to withdraw the guidance for 2024, because the uncertainty of the market create a very difficult situation for the forecast. Obviously, we are strongly convinced that the negative performance of the first quarter will not be the same in the next three quarter. Difficult, but we cannot for sure reach our target in terms of sales, so we decide to withdraw the guidance because the uncertainty. But we remain strongly convinced on our strategic guidance, and we strongly convinced that we need to accelerate all the processes in the faith that they are the only possible solution to change Biesse, and to bring Biesse in the strategic position that we have in mind. Okay. If I may, as a follow-up, you clearly are made a strong decision on the Q1 board. You are actually basically putting all the companies into one company. Does that means basically you're streamlining also the top management? That means you're gonna streamline what is basically the, I would say, directors? Are you gonna address, commercially speaking, all the markets are the same? That would be very helpful if you better un- us better understand what do you have in mind, if I may? And obviously strong moves, basically, if, and a strong change from the past. Perhaps you might wanna also add something with regards to competition. It would be great. Thank you. At this stage, there is no decision taken on anything related to the first line. Of course, the aim is to make the company leaner and faster in the decisional process, so, but at this moment, there is nothing that has been decided. On the other side, in relation to the markets, clearly, we look at creating a cluster of markets that will improve efficiencies and will provide more sustainable economic structure on one side, in terms of geographical coverage across the world, and a proper size of business on the other side. On the other side, optimize the utilization of the resources across countries. So in this sense, s o I'm not talking, of course, about the legal entities. I'm talking about the way we manage the market commercially. This may evolve more in the direction of clustering certain geographical areas. Mm-hmm. Regarding competition, there is not much we can comment, in the sense that, except one much bigger competitor than us, that is, Company's public available data. I would say that, especially in the stone market, we have seen a very difficult situation, or at least, we know of a very difficult situation for most of the competitors, with, considering that, especially, the stone is a very fragmented market in terms of customer base. So it's very, so very few big customer, and, a huge customer base of small customers. So the small customer are very exposed to the difficulties to access the credit. On the other hand, you know, of course, the result of Omag, which is the number one in the market, undisputed. They went to, B ut I cannot comment about competitor result, of course. What I can say is that we have a different geographical mix, which we believe makes difficult to compare the data on one side, and on the other side, there is no doubt that there is a scale that is completely different. And if you proportion a little bit the scale, you will not get to a very different result, which at the end tells that, in general, this industry require a significant evolution, which I don't believe is just about Biesse, but is in general for this industry, which is still too fragmented and requires an evolution of the business model, which is what we want to do, is what we want to pursue with our strategic plan. Lastly, if I may, still in competition. Would you fairly say that pricing pressure from Chinese competitors is just basically over? Or you still foresee high pressure given the capping in terms of geopolitical, and if you find the Chinese actually being more aggressive in terms of pricing at this point? Yeah, as I already mentioned, we noted. As you know, there's no official numbers of our market, so we try to analyze the market based on the information that we can grab from the market and from some newspapers and internal analysis. But we saw in the first three months a significant increase of the competition from the Chinese companies, especially two companies, Nanxing and KDT. We saw an increase in terms of. They become more aggressive in terms of price. As already mentioned, for the first time, they, in the glass market, become the first exporter, and this is due to the fact that their cost and their price are lower than others. Okay. I'm sorry, I'm just gonna make a last question. Apologies for taking the others' time. As far as U.S. is concerned, how much of your sales are currently in the U.S.? And do you expect any tariffs impact, if I may? And how was the order intake in the U.S. in April? U.S. is our second market. Our first market is Italy, obviously. U.S., more or less, is 10%-15% of our total turnover. Obviously, we already have some significant impact on the tariff, because we jumped from 5% to 10% in the last month. As promised by Mr. Trump, starting from the ninth of July, the tariff will become 20%, so with a near 10% increase. Obviously, we expect a significant impact if the tariff will be confirmed. Not in 2025, because starting from the ninth of July means that for the first six months of the year, we had only 5% increase compared to last year. But to 2026, obviously we will have the full year of impact. So we just try to analyze the different scenarios in terms of tariffs at the 10% level and 20% level. We understand that we try to recharge to the clients, obviously, part of that increase. We are strongly convinced that we cannot recharge 100%, and so we see some decline in our order and in our sales, due to obviously higher in the scenarios of 20%, but in any case, also in the scenario of 10%, so the current scenarios, we will see some decrease in terms of orders and obviously in terms of sales. All the competitors are more or less in the same situation, because, if you exclude the local company based in America, so the American company, that obviously are outside the competition in the, for the tariff, but Omag has a plant in U.S., but, Omag buy significant part of the machine, in Italy and in Europe, so, they will have also tariff, in, for that machine. So I think that, all the competitors are more or less in the same, in the same situation. What is struggling the market is the consumer confidence, that, as you know, the, the U.S. market buy on the consumer confidence. So if the consumer confidence remain negative, regardless the weight of the tariff, the impact on the sales, will be higher. Thank you very much. I'll come back later. Thank you. The next person is from Alberto Francese, from Intesa Sanpaolo. Go ahead, sir. Hello, Dr. Francese speaking, Intesa Sanpaolo. Can you hear me? Yes. Ciao, doc. You know, ciao, ciao. Well, Arturo made many questions I have in mind, so I will be briefer. I'm going to be a little bit more on numbers. In the first quarter, the other expenses and labor cost declined significantly versus now on the first quarter 2024. Do you think that this level of operating other operating expenses and labor cost are sustainable, so it is a good basis for projecting our estimates for the full year 2025? And related to this, you are mentioning 11 million EUR provision on right-sizing cost in 2024, which are spending in 2025. I remember in the last call that you mentioned, there is still room for right sizing on the process, especially in the GMM integration. So what can we expect by the end of 2025 or 2026, in terms of head count reduction, this four hundred thirty-four is something that which further increase? Just to have an idea where you are going to land in terms of right sizing of your head count, so in general fixed costs. Yeah. No, we have, fortunately, a lot of space in reducing both staff cost and G&A. As you know, we started this process last year, and we started to analyze every single line of the cost in each legal entities, due to the fact that we need to create more efficiencies. And obviously, our labor cost weighted in the first Q at more or less at 40% in terms of sales. So as you can imagine, the weight of the labor is the key priority for us. We have a lot of space to right size, and you will see in the first quarter an additional reduction in terms of head count, and also an additional reduction in terms of labor cost, because in April and in May, we made some additional cassa integrazione, and we closed the plants for some days and also the offices. So we can reduce it also in the next quarter, the weight of the labor cost, and we keep continuing to have a very strong attention and focus on the G&A. So compared to last year, also in Q2 and Q3, for sure, you will see a significant decline in terms of cost. I mentioned only Q2 and Q3 because, as you know, in the Italian market, June/September will be the final month for the cassa integrazione. So we need to obtain all the efficiency that we can in the next month, and try to balance the reduction in terms of order and in terms of sales. Okay, thank you. The net debt increase now from the full year 2024, but, you know, working capital absorbed around EUR 7 million. Yeah. So you mentioned some restructuring cost, cash taxes. If you can give us a little bit more color on the reason of the increase in net debt, other than the working capital increase that you already commented. Yeah. Yeah, so in normally, in the first quarter, there are, compared to December, obviously, there are an increase for the payment of the suppliers. So due to the fact that normally November and December are two months with higher sales, we bought raw materials, and so we are going to pay in January and February, an higher level of suppliers. So if you compare the payment of the suppliers in November and December, you will see a significant spike in January, in February, and in March. So this is the first reason for the drop. Then you will not see this drop in the total amount of the payables, because in March, as I mentioned, we had an increase in terms of orders, so we bought a lot of raw material in March, so you have an increase in terms of invoices from the suppliers in March, but the payment that you did in January and February reduced the net financial position. The second reason was the taxes, especially in our subsidiaries apart Italy, there was a significant payment. This is normally, obviously, the pay of the company taxes and VAT. So in January and February, we had a significant payment for taxes, especially for European and American companies. In terms of CapEx, there's no significant investment in the first quarter, so the main two reason are the suppliers and the taxes. Okay. And another point, in the revenue bridge showed, as in the presentation, you mentioned also the Mechatronics. How much are the Mechatronics revenues? Because I've seen only the, you know, the trend, which has not been that negative. Let's say, what is the revenue in Mechatronics, compared to the first quarter revenues? Less than 10% of the total turnover. Turnover. Okay. As a reminder, if you wish to register for a question, please press star and one on your telephone. For any further questions, please press star and one on your telephone. Gentlemen, there are no more questions registered at this time. Do you have any closing remarks? No. Oh, sorry, there is a follow-up from Alberto Francese from Intesa Sanpaolo. Please go ahead, sir. Thank you. Sorry. Now, on the order intake, you mentioned in April, which I think it's January, April, now four months, is EUR 9 million lower. I got it correctly? Yeah. Correct. Correct. That is a near up-to-date number. And so the rush that we've seen in the last 10 days of March, actually it didn't continue in April? Correct. Correct. Okay. Thank you. For any further questions, please press star and one on your telephone. If management, there are no more questions registered at this time. Thank you very much for your time. Have a nice day. Thank you. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.