Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the Cementir Holding First Half 2026 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 Marco Maria Bianconi, Head of M&A and Investor Relations of Cementir Holding. Please go ahead. Thank you. Welcome to Cementir Holding first half results presentation. I am here with our Chairman and Chief Executive, Francesco Caltagirone, who is happy to take your question at the end of my short presentation. I will go through the presentation deck that has been distributed ahead of this meeting. Starting with page two, with the key takeaways from the results. There has been a significant improvement in the second quarter, despite a first quarter that was impacted by exceptionally adverse weather conditions. At constant perimeter, Q2 cement volumes were up 3.4%, non-GAAP revenue was up 5.3%, and EBITDA was up 12.9%, confirming a positive reversal compared to the weak start of the year. On a reported basis, consolidated volume declined across all business lines, with cement - 2.9%, ready-mix - 10.9%, and aggregate - 2.6%. At constant perimeter, though, excluding the disposal of Kars Çimento, cement volumes were up 1.4% in the first half of the year. There was a positive trend in Belgium and Egypt following the restart of the second kiln. Reported performance was affected by Forex headwinds, mainly due to the depreciation of the Turkish lira and of the U.S. dollar. This negative impact amounted to EUR 37.4 million on non-GAAP revenue and EUR 2.6 million on non-GAAP EBITDA. EBITDA was also affected by lower volumes in Nordic & Baltic and Türkiye due to weather conditions, whilst Egypt, Belgium, and North America improved year-on-year. There was a clear improvement in the second quarter. There was no significant direct impact from geopolitical conflicts on our operations. Energy cost volatility has been largely mitigated through a structured risk management approach and our hedging, while some pressure still persists on petcoke supply and logistics. Our full year 2026 guidance is confirmed despite the very uncertain macroeconomic and geopolitical environment. On page three, a few highlights. I am not going to read it verbatim, but just to give you the highlights, that revenue was up 0.2% year-on-year, non-GAAP was down 1.7%. Our constant perimeter was flat. EUR 37.4 million negative effects, mainly due to Turkish lira and the U.S. dollar. We talked about cement volumes already and RMC volumes as well. On the EBITDA basis, the group reported EUR 163.9 million, -5.5%. Non-GAAP EBITDA was -10% at EUR 153.6 million and was down 9.5% at constant perimeter. The decline in EBITDA was mainly driven by Nordic & Baltic and Türkiye at EUR 26.6 million, lower volumes and negative FX impact of EUR 2.6 million. Non-GAAP EBITDA margin stood at 19.3% versus 21.2% on the first half of last year. Group net profit was down 15.7% to EUR 62 million. Non-GAAP net profit was down 18.9% to EUR 66 million. Net cash at half year was EUR 276.8 million, an improvement of EUR 132.8 million year- on- year, including EUR 51 million of Kars Çimento disposal, EUR 19.7 million of insurance proceeds, EUR 18.6 million of the Just Transition Fund, and EUR 54.9 million of dividend distributions. We now go to page four, starting with the biggest division, accounting for 45% of group EBITDA, Nordic & Baltic. In Denmark, the construction market remained relatively weak, especially the residential part, due to restrictive financing condition and energy cost uncertainty and some projects postponement. Grey domestic cement volumes were down 4% year- on- year, impacted by exceptionally harsh weather and delays to the Fehmarn project, although deliveries improved during the second quarter. White cement was up 12%, supported by stronger demand. Exports were down 16%, mainly due to lower deliveries to Norway and Iceland, partially offset by growth in Poland, France, and Finland. RMC and aggregates volumes were down 11% and 21%, respectively. EBITDA was down 21% year- on- year, impacted by lower volumes, higher CO2 taxes, and increased variable cost. In Norway, sales volumes were down 5% due to weak demand, lower activity on major projects, and some market overcapacity and price competition. EBITDA increased, driven by higher prices, partially offset by increased variable cost. The Norwegian kroner was up 4.2% versus the EUR average. In Sweden, ready-mix sales volumes were up 10%, driven by the recovery from March, the restart of some postponed projects, and several new contracts. Aggregates volumes were up 24%, supported by new projects and the temporary closure of a competitor's quarry. Also, EBITDA was up, and the Swedish krona appreciated by 2.8% versus the EUR average. Moving to page five, Belgium and France, accounting for around 32% of H1 EBITDA. Domestic cement volumes were up 5%, supported by new customer and the major infrastructure projects in the Antwerp area, despite adverse weather at the beginning of the year and unusually high temperatures in the second half of June. Exports were up 17%, mainly to France and Netherlands, driven by new customers and a major project in Antwerp. Ready-mix volumes were down 6% due to weaker performance in Belgium and adverse weather conditions, some Easter-related shutdowns, and a high comparison base in the first half of last year. In France, volumes were up 3%. Aggregates volumes were up 2%, mainly in France and the Netherlands, benefiting from stronger infrastructure and construction activity from March onwards. EBITDA was up 7%, reflecting higher cement volumes and lower raw materials and CO2 costs, partially offset by higher costs related to different maintenance schedule and lower RMC volumes and higher variable costs. Moving to page number six on Türkiye, accounting for 5% of group EBITDA in the first half of the year. In this country, challenging operating environment continued, impacted by hyperinflation, high interest rates, and exceptionally adverse weather in the first quarter of the year, and weaker post-earthquake reconstruction demand. Domestic cement volumes were down 13%, 2.2% excluding the disposal of Kars. Mainly affected by adverse weather, gradual completion of major post-earthquake reconstruction projects, and mixed regional trends with Aegean up 15%, Marmara - 2%, and Eastern Anatolia - 32%. Exports were up 2%, whereas domestic RMC volumes were down 15%. Aggregates were down 26% due to a slowdown in the reconstruction activity, although June showed a strong recovery supported by some major infrastructure projects in the area of Izmir. Revenues were down 19%, also because of the Turkish lira depreciation. EBITDA declined, reflecting lower volumes and higher variable and fixed costs, only partially offset by price increases. I remind you that we divested of Kars Çimento on December 1st, 2025. In the period, the Turkish lira devalued by around 27% versus the Euro average. Moving to North America, accounting for 7% of our group EBITDA. Volumes in the U.S. were broadly stable, demonstrating a certain resilience despite a generally softer market environment and weak residential demand. Florida recorded a 10% increase, mainly from demand from new customers, whereas in Texas, volumes were down 7% due to a January snowstorm and a competitive pressure from imports. In California, volumes were down 9% due to intense competition. EBITDA was up 1.8% with cement business impacted by higher variable costs from FX effect and only partially compensated by higher selling prices. The dollar in the period depreciated by around 6.8% versus the Euro. Moving on to Egypt, accounting for 5% of group EBITDA in the period. Revenues were up 57%, despite a 7.3% depreciation of the Egyptian pound. Macro context remains challenging with high inflation, currency volatility, and rising energy costs. Domestic cement volumes were up 31%, supported by stronger commercial positioning and market share gains. Export volumes were up 78%, benefiting from deferred shipment from December of last year and the resolution of some technical issues following the restart of the second production line, particularly supporting sales to the U.S. EBITDA was up 43%, driven by higher volumes and more favorable geographic mix focused on higher margin export destinations, which more than offset higher energy and production costs. Moving to page number nine on Asia Pacific, which is the last business unit we're going to talk about, 3% share of group EBITDA. In China, volumes kept declining 6% year-on-year, impacted by weak demand, intense competition, and adverse weather. There was also a slowdown around the Chinese New Year. Market environment remains weak despite government stimulus. Revenues were down 10.5% year-on-year, reflecting lower volumes and adverse lower selling prices. EBITDA, as a reflection of the top-line decline, was down 21.4% due to lower volumes and prices and higher fixed costs, partially offset by higher variable cost savings. The renminbi depreciated by 1.1% versus the Euro average in the period. In Malaysia, on the contrary, total volumes were up 2% with domestic volumes, although marginal, declining by 11% due to order timing effect and weaker retail demand. Cement exports grew 14%, supported by higher deliveries to Australia, the Philippines, and Vietnam, while clinker exports declined by 24%, mainly due to shipment timing difference to Australia. Revenues were up 8.3%, supported by higher export volumes and more favorable product mix. EBITDA was down 55% due to higher variable and fixed costs, particularly distribution logistics expenses. The ringgit EBITDA was up 2.8% in the period versus the Euro. Two words about the acquisition of Nymølle. A bolt-on acquisition, the aggregate business enhancing vertical integration, securing a stronger Nordic platform. On July 1st, we completed acquisition of 100% of the extra capital of Nymølle Stenindustrier, with an enterprise value of DKK 900 million, which is equivalent to around EUR 120 million on a cash and debt-free basis. The expected synergies are around DKK 30 million or EUR 4 million within 24 months through integration with existing Nordic & Baltic operations. Nymølle is the largest aggregate player in Denmark with around 10% share. It operates 26 land-based aggregate quarries across Denmark and holds a well-developed reserve base. The full year results ending April 2026 are for revenues of DKK 230 million, pro forma EBITDA of DKK 93 million. Moving to the last line of my presentation, guidance, which is confirmed. Despite the uncertain macroeconomic and geopolitical environment, we reiterate our full year guidance, which is for revenues to reach around EUR 1.7 billion and EBITDA range between EUR 400 million and EUR 420 million, net cash position of around EUR 590 million, after a CapEx of around EUR 128 million. As you know, our guidance refers to like-for-like ongoing operation, non-GAAP, and excluding any extraordinary items. That said, thank you for your attention and I now leave the floor to you for any question to our Chairman and Chief Executive. Thank you. Excuse me. This is the conference call operator. We will now begin the question and answer section. Anyone who wishes to ask a question may press star and one on your touch- tone telephone. To remove yourself from the question queue, please press star and two. 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 Wim Hoste of KBC Securities. Please go ahead. Yes, good evening. Thanks for the opportunity to ask questions. I would have two, please. The first one would be on cost inflation and pricing initiatives. In the first quarter results conference call, I think a figure of EUR 38 million inflation was mentioned in the context of the conflict in the Middle East. Can you maybe update on that number and also update on the pricing initiatives you might take in some of the zones in order to offset that inflation? That's the first question. My second question would be on the strategy. There has been some rumors about M&A recently in Latin America where Cementir has been mentioned. Without asking you to confirm the rumors, I would like to get a reminder of the overall strategy and priorities when it comes to the cash deployment and the growth of the company. If you can maybe elaborate a little bit on that. Those were my questions. Thank you. Yes, please. Okay, thank you for your question. Yes, on the cost inflation, you're right that there's been a hit in the first quarter due to the increase in especially input costs and raw materials. I would say that in the second quarter, we clawed back some of these hits, and thanks to our hedging, we managed to offset the majority of the price increases due to average higher input costs, especially for thermal energy and electricity. I would say that has not been, as we said, also in the communique and in the presentation, any meaningful impact on our figures. If we compare also the electricity and fuels bill in the second quarter compared to the second quarter of last year, there is a delta still unchanged of around EUR 8 million. I would say that the delta of the first quarter has been kept. Good afternoon to everybody. If you see in the first six months, we saw a decline in the sales in cement slightly, ready-mix concrete around 10%, and aggregates. You can see that in the first half at the same perimeter, the revenues are almost in line. This means that almost everywhere there is, let me say, a hike in the price as we also told in the first quarter to cover the cost. This also the reason why, from the gap compared to last year of around EUR 28 million in EBITDA that we had in the first quarter, now we nearly half this gap, because of, let me say, this price increase. Going to your second question about the strategy of the possible enlargement of the perimeter of Cementir Holding. As I said in the past, that we look at, as it happens, several opportunities that might arise from the market. You know that the only part of the world where we are not active today is South America. For sure, this asset, I mean, CSN, is an asset that is on the market because the seller is forced to sell it. We are looking at it, let me say, as other competitors are doing. We are today in a phase that we are estimating and evaluating the asset to, let me say, understand if part of this perimeter. Because the perimeter as a whole is, let me say, too big for us, might fit in our perimeter. Let's see, we are still in a sort of preemptive phase, at this stage, I can only say that it's an opportunity like a lot arise in the last four, five years. It might be and might not be. Okay, very clear. Thank you very much. The next question is from Matteo Bonizzoni of Kepler Cheuvreux. Please, go ahead. Thank you, good evening. Good afternoon. Two question. Guidance, you have done this 10% EBITDA decline in the first half on non-GAAP basis, despite encouraging recovery in the second quarter. You still need to do a mid- to high- single- digit EBITDA growth in the second half to meet the low part of the guidance range, which doesn't seem to be a walk in the park in the current market conditions, in which Türkiye could continue to be weak. Also, there is uncertainty on the potential recovery in Scandinavia. I would like to know more precisely, what are the basis and the grounds of your confidence to achieve, even, I would say, the low part of the guidance range. If you can specifically maybe comment to different geographies. Then a follow-up on the question on the potential M&A in Brazil. Correct me if I'm wrong, what we read is that it's a pretty crowded context with a lot of potential buyer, and we also read from newspapers, it's not maybe insider information, but it's public information, that the multiples could be pretty stretched. It seems that compared to your usual M&A style, not to overpay, doesn't fit, very much. Maybe, can you add a little bit more color also on the general framework as regards the valuation of these assets? Thanks. Well, starting from your second question, I agree with you that, on the newspaper, or the expectation, because everybody that sells something want to sell at the higher price. I am also aware that we have our discipline. For this reason, I told to the previous questions that, let's say, it might be or it might not be, because, let's say, one thing is that, there is an opportunity to enter in a country. One other thing is that the assets are in a good shape, and fit for the strategy. The third thing is that the price is reasonable or not. I can say that, as you are saying, that at the price that, let me say, you see, or you read in the newspaper, is something that probably we are not interested. It's a crowded process, and let's see where and when it will end up. As I said, we are interested, but at a certain condition. On the other side, as I also said, that besides also the price, there is also the size of this company. This can be carved out. It is in the end of the seller that is aware that he has a few, let me say, bidders, probably some of them for the whole and some of them for part of it. Today, we are still in a sort of non-binding phase, and so we are not aware of what even the seller will decide at the end. On your first question, as I said, we are still confident that we can reach the guidance. I think that what we have done in the second quarter is in line, and the trajectory is to have this kind of recover. We are aware that for sure there are still some headwinds, especially from the two wars that are active now, but not on the coast side, because as you know, we are mostly edged, we don't expect weird things from coast side. As probably in other geographies are experiencing, there are some delays in some, let me say, project, and this might affect the pipeline of the quantity of the sale. As I said before, even so far, with a mild decline in our footprint, let me say, market, we were able, let me say, to balance and to recover. We are confident. Probably, let's say that I am more confident now than three months ago. Thank you. The next question is from Emanuele Negri of Mediobanca. Please, go ahead. Yes, good afternoon, everybody. Thanks for the presentation and for taking my question. I have a couple. The first one is a follow-up on extra cost. During the first quarter conference call, you mentioned around EUR 38 million of extra cost, which you expect from geopolitical tension. Now you're talking about around EUR 8 million in the first quarter and around EUR 0 million in the second quarter, if I'm right. Could you elaborate on this delta or what has changed during the quarter to have this reduction in your expectation? And the second one, if you have any update on the ACCSION project in Denmark. What we said is that, at the end of the first quarter, if the condition would have remained the same, we would have expected EUR 38 million in extra, let me say, cost. You have seen that, beside them in the last week, that then the price of oil went dive, from EUR 120 to around EUR 70. Now, in the last 10 days is again up. It's difficult. We took, let me say, EUR 8 million because, well, the one part of this, let me say, hike that we, like everybody, let me say, felt in the second quarter. Going forward, I can say that if one week from now they agree on, let me say, to calm down the things again, probably the extra cost will be lower, will be more or less, let me say, what we have seen so far. If the global context will, let me say, mess up again, I think that we might stick to our forecast. On the ACCSION project, as you know, we have been approved, let me say, by the Danish fund, financing for 15 years. That is up to EUR 2.2 billion. As we said, we are waiting because we are part of the project. As I said, the project is the capturing the plant, then to ship by pipeline, let me say, the CO2 to a site, and then there is also the storage area. We have to be aligned, and we expect by early 2027 to be fully aware of the agenda of the other two players that in outside the plant, just to confirm the agenda and also because we are at the later stage, there are just few months to wait to understand if everything is okay in the storage area, from seismic, from, let me say, leakage. There are no possibility of the leakage. In the atmosphere. in the atmosphere. This will take nearly 30 months. It already started, but the company that is not ourselves, but leading, they said that early in 2027, will release the final opinion. So far, let me say, there are no red flags. This is what I can say. Thanks a lot. Thank you. The next question is from Egor Sonin of AlphaValue. Please, go ahead. Good afternoon, everyone. Thank you for picking up my question. I have a question on petcoke, because you've called out petcoke supply and logistics as the one area where cost pressure still persists. At the same time, the part of the group growing fastest is white cement, and Egypt specifically. It's actually the part that can substitute away from it, since your own target for white cement is only 8% for color reasons, so you cannot easily substitute petcoke. My question is, how do you manage that specific exposure? Through long-term supply contracts, stock levels, or maybe pricing, for example? Could you give more colors regarding this? Thank you. Thanks, Egor, for the question. It's a very good one. As you know, petcoke is a peculiar fuel because supply is generally concentrated in the U.S. Gulf. There are a few suppliers coming from the U.S., and it's one of the few commodities that you cannot really hedge unless you run a significant delta risk. Actually, the only way that we can materially hedge is just buying forward what we need. That's what we've done, and that's the reason why you don't see a meaningful movement in the thermal energy bill so far, because we've been able to actually buy forward quite a lot of quantities for our needs. Clearly, going forward, we need to monitor very closely the dynamic of this commodity. There is a double effect. One is the dynamic of the dollar, the other clearly is of the commodity itself in our accounts. We have a minor third leg to diversify or to try to hedge is to try to split the purchase into two different suppliers. Again, you don't have very huge alternatives. We watch the space very carefully. Clearly, in this particular commodity, there's very little you can do in terms of hedging, as I said, besides buying forward. We've clearly said in the presentation that this is probably one commodity that has a particular dynamic. We believe that by buying forward, plus diversifying the supply base, we can manage to not control, but at least limit the price hikes. Francesco, would like to add something? Yes. I would also want to add that today, especially in Europe, our consumption of petcoke is going lower and lower because of the use of alternative fuels that both in Denmark and in Belgium is around 75%. In Denmark, we are going at natural gas. In Belgium it will happen next year. In the U.S., we are using natural gas. In Türkiye we use, just on opportunistic way, lignite, that is a natural, let me say, coal. Let's say that the only countries that today go full petcoke are Egypt, China and Malaysia. That is account in terms of quantity that is less probably than 15%. Let's say, for sure it's an issue, for sure there is a limited framework where you can hedge. Compared to other players, let's say, the increase of the petcoke affect our balance sheet in a minor way. Okay. Thank you very much for the very detailed answer. The next question is from Emanuele Gallazzi of Equita. Please go ahead. Yes, good afternoon, everybody. Two questions from my side. The first one is on the Turkish market. I know that is a very volatile market, but I would like to understand how do you see this market evolving in the coming quarter, do you think that the Carbon Border Adjustment Mechanism could change the competitive environment there? The second one is on the CapEx, because it seems to me that you are a little bit ahead of your target for the full year at EUR 130 million. Can you just comment on it? Are you, say, accelerating the green investments? Just to understand the target for the full year. Thank you. Regarding investment, as we shared in the first quarter, due to the very unfavorable climatic condition, we sped up the part of the year. It's not in our pipeline to speed up. We just invested, I mean, CapEx, more in the first part of the year because part of the perimeter was difficult to sell cement due to this unfavorable. I think that probably we will be even a little bit less at the end of the year than the forecast. The other question was? On the Turkish market. The Turkish market, besides the very slow start, even for weather conditions, today it's gathering pace. We don't think for sure that the Turkish market as a whole will be lower than last year, considering that we also had Kars, that we sold the plant. Today we have one plant less, or 12% of the perimeter less in terms of quantity. We think that what we are seeing now, even in July, that there is a recovery in the market in consumption and also in part of the perimeter, the hiking of the price. Remember that Türkiye today still has an inflation that is around 30%. Every month or two months, you need to adjust, especially now, because as you know, Türkiye doesn't, like most of the European countries, have energy resources. Every increase, what we are seeing in the last 10 days, arrives directly in the cost of every product. What we saw in the last two or three years, that it's easier when you have inflation to increase the price, and this is what is happening in the market. Do you think that the Carbon Border Adjustment Mechanism may change? Sorry? competitive environment there? The carbon, let me say, the CBAM should, when it will be in place, like what we saw in Europe, should start to freeze to make the market, because then if you don't have the free allowance, even if the free allowance is EUR 10 or EUR 15, because as you know, today in Türkiye, the EBITDA per ton is between EUR 10 and EUR 20. If you have an extra cost of EUR 10 or EUR 15, then you are not willing to expand capacity and just to give the extra profit, the trade profitability. What we think is that when this CBAM mechanism will be in place, and for Türkiye, it's a must because they export a lot of steel, a lot of aluminum, besides cement. It's in the interest of Türkiye to start this carbon leakage system, to put in place this, because otherwise they cannot export to Europe, and they will be taxed in a heavier way, because for sure, to be taxed at EUR 80, like it is today, the CO2, instead of EUR 10, EUR 15, it's a big difference. Anyway, I believe that this should start to simplify the competition framework in Türkiye, like what we saw in Europe starting from 15, 20 years ago. Okay. Thank you. As a reminder, if you wish to register for a question, please press star and one on your telephone. Once again, if you wish to ask a question, please press star and one on your telephone. The next question is from Bruno Permutti of Intesa Sanpaolo. Please go ahead. Hi, good evening, everyone, thanks for taking my questions. The first one concerns Denmark. There was a recovery in the second quarter of the year, and you highlighted that also the volumes of white cement were higher. I was wondering, how do you see the second half of the year, if you see the recovery continuing? In particular, why this different dynamic, the quite good performance of the white cement in a relatively weak market in the first half, if you can explain the dynamic of this. A second question concerning the new customers in France and Belgium. I was wondering if the positive impact of the new customers will be seen also in the second half of the year. The dynamic of white cement is different from grey cement, it's affected in the high and the low of the cycle much less than the grey cement. The reason why white cement is performing better is because of this. Regarding what we expect in the second half of the year is that, besides the macro shocks that can arrive even tomorrow, we see that there is still a mild recovery. There is some delays in the project, but delays mean that it's not canceled. If you delay something in January, now probably you are going to start. This is what we are starting to see in Northern Europe. That is not only Nordics, but even Netherlands or Belgium and even France. We think that especially in France and Belgium, there has been the possibility just to market adjustment, just to grab some customers. This is a normal situation that happens. I cannot say that this customer will stay with us forever. Let's say that what we are talking about the next five months, because we are at the end of July and probably next year, I am positive on this. Thank you. For any further questions, please press star and one on your telephone. Mr. Bianconi, there are no more questions registered at this time. Okay. Thank you very much for your interest in Cementir and for following this conference call. We wish you a pleasant rest of your day. Thank you. Thank you. Bye-bye. Bye. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.