Good afternoon, and welcome everyone for this call. In March 2019, the combined market, India plus Mexico, two of the most strategic markets for F.I.L.A. and the fastest-growing, had a turnover of EUR 24 million and generated EUR 2.5 million in EBITDA. In March 2021, India and Mexico have generated a EUR 17.5 million turnover and zero EBITDA. Of course, this does not calculate at all the regular trend of average growth of these two markets in the last five or six years. That was between 15%-20%. I would like also to add more information. In March 2019, the exchange rate between the euro and the dollar was 1.13 on average. In March 2021, this exchange rate was on average 1.20. I think that when Stefano De Rosa comments after the result, you can appreciate that now F.I.L.A. is under a correct cruising speed. Of course, the situation is still complicated in India and Mexico, with a huge potential in the future quarters coming, as the situation over there is extremely complicated. One information that I would like to share with all of you is that fortunately, at the budget level for 2021, the group has been extremely conservative for Mexico and India, and we had forecasted the, let's say, normal course of business starting from the month of June. This means that for the remaining quarters, the impact should not be that negative. One last information that gives some flavor, but I think it's important. I don't know if all of you had the chance to follow the situation in India, but during the month of February, everybody was talking about the disappearance of COVID, and everybody was trying to understand why, in India, the situation was improving so quickly. The prime minister decided to reopen the school for almost one month until the end of March, when the situation started to collapse again. Well, in one month, we have experienced 25% of schools reopening in the entire country. With this 25% in one month, India has generated the same turnover of 2019. This should tell you the unbelievable potential of this country in the future when the situation will go back to normal. I think as numbers speak for themselves, I prefer to ask Stefano De Rosa to present the numbers and then go to the Q&A session. Thank you. Okay. Thanks, Massimo. I ask everybody to go to page five of the presentation. We start with the core business sales analysis. As you can see, core business sales in Q1 2021 are equal to EUR 141.7 million. The analysis with a comparable FX rate means an increase compared to the previous year of 3.1%, equal to EUR 4.6 million. FX is equal to EUR 8.7 million, mainly concentrated in North America for EUR 5.4 million, then in Central America for EUR 1.5 million, and in Asia for another EUR 1.5 million. This is the allocation of FX. The increase of EUR 4.6 million by geographic area is allocated mainly due to the stronger increase in Europe for EUR 8.6 million. This increase is 50% school and 50% for Fine Art. This increase is partially offset by a decrease in North America for EUR 2.7 million. I would like to point out two things: Fine Art was very strong in North America, the decrease is due only to the school business, of course, school sales. North America is comparing Q1 2021 with a very strong Q1 2020, because if you remember, in America, COVID's impact started from April. This result is due to a completely different impact of COVID, while in Q1 2021 COVID was still present. We have a decrease of EUR 1 million Asia geographic area. This is due to India school business, partially compensated by Fine Art business. In Central America, the decrease was equal to EUR 0.4 million, of course, mainly due to Mexico. By product line, as you understood, the increase of EUR 7.5 million is on Fine Art sales and industrial sales for EUR 0.7 million. These two increases were partially offset by a decrease in the school business. Fine Art increase made in Europe by EUR 4 million and in North America by EUR 2 million, with the remaining part between Asia and Central America. I don't mention that you also have a split at the sale of Dixon Mexico and India in India sales, Massimo already mentioned the trend. I would like maybe to jump to page six, where you can see exactly the trend of the sales, where it clearly shows a strong decrease in the weight of the Fine Art sales compared to school sales, hence the increase in the euro geographic area increase in 2021 compared to 2020 in the area of Europe, however, the decrease is mainly concentrated. Now, page seven, you have the EBITDA-adjusted analysis. Our EBITDA is adjusted and normalized, and the data are considered, including the IFRS 16 effect. The EBITDA in Q1 2021 is equal to EUR 20.1 million, showing, at a comparable FX rate, an increase of 21.2%. That means EUR 3.6 million compared to the previous year. The increase in EBITDA is really strong, and I would like to point out it is also in North America because America had a decrease in sales but not a decrease in EBITDA. The reasons are mainly referred to, of course, an operating leverage that is part of our P&L, but the mix of sales, the sales mix, being concentrated in particular in Fine Art and industrial business, generates a higher level of EBITDA. Of course, also part of the sales were made through the e-commerce channel; it also helped the EBITDA to increase compared to the previous year. This explains why the EBITDA increased more than the sales but also, in particular, why we have a 14.2% EBITDA margin compared to 11.5% of the previous year. If you go to page eight, of course, we can see that the improvement of the margin is reflected in the net result. Net result is equal to EUR 7.1 million, with an increase of EUR 7.3 million compared to the net result of the previous year, which was a little negative. Of course, this increase is due to the EBITDA increase but also to a lower level of amortization depreciation. Last year, Q1, we were very conservative in the provision in the accrual related to the better results. This year, of course, there were no reasons. Of course, amortization and depreciation were also less than the previous year due to the lower level of CapEx that we sustained in 2020. The other big point of improvement is that the financial result is EUR 3.6 million. This is an important point because net interest are more or less in line with the previous year for the facility agreement and the long-term, medium-term debt that we have. We had a good improvement of interest, in particular in Mexico, because we optimized the source of finance for Mexico, lowering the interest rate, the normal rate. This creates more or less half a million in savings in interest costs. The improvement of the financial result is due to the financial FX effect that we have on loans. As you know, the group has a loan in a different currency compared to the country that borrowed the money. In particular, this positive difference is concentrated in the U.S., U.K., Russia, Brazil, and Australia. What happened was just for a technical reason, but just two words about this: in the first quarter of 2021, the local currency was depreciated compared to the euro or the currency of the loan. So we have a negative FX effect. In Q1 2021, all the local currencies were stronger compared to the euro, we had a positive effect in Q1. Adding these two effects, we had a very strong positive FX effect on the net financial results due to the revaluation of the local currency compared to the currency of the loan, which is mainly euro. Related to the net bank debt, the net financial position, page nine, and the last 12 months' cash generation, excluding the positive FX rate and FX effect, the last 12 months' net bank decrease is more or less EUR 50 million. We are in line with the normal value that we expect from the EBITDA, from the summary EBITDA of more or less EUR 110 million, EUR 108 million, and the rolling EBITDA. This is due mainly to the improvement of the net working capital and decrease of inventory that, if you remember, were quite high at the close of December. This effect of improvement of the operating result plus a decrease of inventory, mainly in the U.S., but also in France, in Mexico, and also in Italy, helped to realign the cash generation of the last 12 months to the standard value of EUR 15 million. Because if you remember, we were in December around EUR 30 million. These effects can be analyzed also in the comparison of Q1 2021 with Q1 2020, so the single quarter, not the last 12 months' cash generation. We had a cash absorption, of course, in this period, so it's negative for EUR 80 million, but last year, the free cash flow to equity was negative for EUR 40 million. This EUR 20 million improvement is focused half on improving the net result and on the other remaining part on the improvement of the net working capital. I conclude the analysis of the quarter, and so we are ready for the Q&A session. We will now begin the Q&A session. To ask a question, you may press star, then one on your telephone keypad. The first question comes from Niccolò Storer with Kepler. Please go ahead. Good afternoon. Ciao to everybody. First of all, congratulations on the results, which are really, really, really good. The questions. The first one is on your budget. You say you expect a return to normal in June for emerging markets. If I remember correctly, in our last call, you said you were expecting a normalization in the month of April. I was wondering if you made this change for real and if this is affecting your overall budget for the year. Also related to that, you don't think that assuming a return to normal from June could be something a bit optimistic in light of the situation that is under our eyes in India. Maybe also related to that, what should we assume is the impact on your budget from a potential postponement of a return to normal in India and Mexico? Is it reasonable assuming EUR 1 million of lower EBITDA for every month lost in these areas? I understand it's a bit complex, this was the first question. The second one is on finance. I see that you keep on reporting very good numbers. I was wondering if you could comment on your expectation for the rest of the year, when probably we start facing some tougher comparisons versus 2020. Which progression is, at the moment, included in your budget? Last question on weakness in North America. You said, Stefano, that this is related 100% to schools. Yes. Why this? In the sense that, okay, last year we didn't have COVID, this year we have COVID, but my understanding is that schools in the U.S. have remained open through the first quarter. Thank you. Thanks, Niccolò, for the questions. Probably, I was not clear when I talked about the expectation in 2021 related to Mexico and India. I try to repeat. We definitely do not think that in India, the situation will be normalized by the month of June. I was just highlighting that, fortunately a t the budget level, we have considered India to go back to normal by the month of June. In Mexico, the situation is starting to go back to normal, which means that in the month of May, we have seen, after 13 months of extremely slow activity, a very good month of May, and we expect a very strong month of June because the situation in Mexico is going back to normal. We do expect a situation worse than what we have budgeted in India, because we read the newspaper every day. Fortunately, all the rest of the world is overperforming, and it continues overperforming in April and May. We don't see any particular need to change the view of the year. We will be able to compensate for the human disaster and not only the human but also the economical disaster that we see in India. I have highlighted the huge potential of that market, because don't forget that India now has lost almost 14 months. When that country goes back to normal, clearly, we will see very strong numbers. The demonstration is in the month of March, stand-alone, in which we had a peak of sales immediately followed by a shutdown of the economy. We don't see any need to review our guidance for 2021, thanks to the fact that we are overperforming in the rest of the world and Mexico is going back to a normal situation. For the second question related to Fine Art, first of all, what I would like to say is that, as of now, we are running in line with what we have budgeted. There is not any particular surprise from the performance. It is possible that from now on, you probably don't recall that there was a very strange situation last year in which we had a very confused and inefficient growth of the top line. This year, we are working in a much more efficient way. What we do expect is that we will continue gaining margins, and we will continue generating very good cash. In terms of top line, clearly, in this moment, by the way, we are applying some aggressive price increase, so it is possible that the growth will go back to normal. We still have a very positive view. Let me remind you of one point: everyone has a short memory, but we finished fixing the reorganization of the group in the last quarter of 2019. Really, we have never demonstrated the efficiency of the group under normal circumstances, because starting from February, we had to face a COVID situation. The business of Fine Art has been extremely well-organized so far, both in Europe and in North America, and our view has always been very optimistic. In this moment, we are just doing what we expected. Concerning point three, the weakness in North America, I think we, again, probably were not very clear. North America is performing well and in line with budget. First of all, I have to correct one piece of information. When you said the schools were open in North America, this is absolutely not true. Schools have been open physically between 30% and 40% of the schools in North America until March. Schools are reopening in this moment. The first quarter has been done with more than half of the schools closed. This has, in a certain way, influenced the priority of our customers. In other words, they have managed as priority number one the demand of the school in the short term. They are now, and when I say now, I mean April, now managing the Back to School 2021, which I fully confirm is a very strong Back to School. In fact, the United States are having a very good April and May, at least in line with our expectations. We are just going back to a normal seasonality. Usually, the first three months can be influenced by customers that can decide to order back to school between March and April. We are in line. There are no weaknesses in North America. We are in line with our expectations, both in sales and in margins. Perfect. Thank you. Maybe a quick follow-up on India, given that your plant is also used to supply other regions. Do you have the feeling that you could be forced to shut down the plant due to the health emergency? Are there no kinds of limitations to production also in sight? No, we don't have any limitation. The problem with the plant, which by the way is the most important plant we have in the world, is that there is very little business from the domestic market, considering the situation. We are feeding the plant as much as we can to help. We have reduced the numbers of workers by two -thirds, so we now currently have 2,000 people working instead of the 5,000 we had just 15 months ago. We are feeding them with orders from North America and Europe, also to help these 2,000 workers to work on a regular basis and not lose them. What we see is that in the last three or four days, the infections have reached the peak, and they are slowly going down. Today, the best estimation we have for school reopening, thanks also to the vaccination campaign, is that we estimate this will happen by September. Thank you. The next question comes from Alessandro Cecchini with Equita. Please go ahead. Hello, everybody, and thank you for taking my questions. The first one is about. Alessandro, sorry, we hear you very, very badly. Hello? Now it's better? Now it's much better. Yes. Okay, perfect. Sorry. My first question is about the context in terms of inflation. About many companies, about freight rates, about raw materials and so on. Probably the first quarter, you benefited from some purchases made last year. I would like to better understand the current situation in input costs and what are you doing in order to offset it? This is my first question. My second question, actually, is a follow-up on the U.S. I would like to better understand, actually, the trend that you are experiencing now in the second quarter, organically, versus 2019. To have in mind what kind of trends you are seeing, normalized trends, of course, not against 2020. That was very bad. Finally, about CapEx. First quarter, CapEx was very limited, EUR 2 million-EUR 3 million, if I am not wrong. I would like to know, with this current situation, what kind of CapEx are needed for this year and if, after two years of very limited CapEx, you need a bump next year in 2022 in order to recover maybe some investments that you didn't do in these couple of years? My last question on Asia. In the first quarter, we saw actually a very limited decline in Asia. Of course, India is very negative. I would like to understand how other countries probably perform very well. I would like to better understand this. Thank you. Thanks, Alessandro. I will start answering the first question of inflation. Inflation is something that regards all the countries in the world. There is no specific information to be given for different parts of the world. The biggest cost increase is related to plastic. In plastic, the cost increase is in the area of 100%. We also have an important increase in related papers, but here we go down to 25%. The other big category of product is pencil, and in wood, we have no inflation. As far as F.I.L.A. is concerned, I would like to remember that also, we have a substantial part of business related to paper made by Canson. Here, we do not have any cost increase. Concerning plastic and paper, we have, actually, starting from April, announced a price increase effective, depending on the country, from the 1st of May or the 1st of June. This price increase will offset the majority of the cost increase. We have made a simulation that, by the way, at the budget level, we have already considered an important increase in raw material. In this moment, we need only to compensate the delta. We are assuming that by July, the cost increase will go back to the budgeted level. In this moment, it's true, there is inflation. The situation while we speak is little by little normalizing in terms also of availability of products. In terms of cost, the costs do not grow anymore. They tend to destabilize, maybe slightly going down. We hope that with our price increase, we are going to offset the impact. Concerning the U.S., I ask you, please, when you analyze the number, to consider that against the euro, the dollar, as of now, has lost between 7% and 8% or 9%. If you translate the numbers that you have in front of you into dollars, you see that the U.S. is already performing quite well, and the U.S. is accelerating. When you ask me about the current trading, the U.S. is running at least in line with the budget. When I say in line with budget, I mean also that the U.S. is improving profitability as expected in 2020, but unfortunately, we couldn't execute a normal year due to the COVID situation. For the U.S., we are happy with what we see in terms of capability of the management and profitability of the country. Concerning the CapEx, maybe I'll ask Stefano to answer precisely. Okay, yes. The total CapEx, if you remember, Alessandro estimates for this year to be around EUR 15 million. Of course, there was a slowdown of CapEx in Q1 due to the certain situation, especially in India and Mexico. At the moment, it's a temporary slowdown. It can be recovered depending on the situation that we will see in the next months. The saving that we have at the moment may be concentrated in these two areas. Okay. In general, we have a level that for us was normal to sustain the development of the year. Okay. On the other Asian countries? Asia, yes. As I mentioned at the beginning, we have a decrease in the area of EUR 1 million. This is a combined result because it's due to the school business in India of EUR 2 million, and then it's totally compensated by the Fine Art business of Princeton of Hong Kong, which is plus EUR 1 million. Asia is affected. Also, China is going well, but the main effect is Princeton of Hong Kong selling brushes, mainly. This is a combined effect. Okay. Basically, you are confident that in the second quarter, you can protect That it's very relevant for you in terms of seasonality to protect profitability with price hikes. Pardon? Sorry. I was wondering if, with your analysis on pricing and raw material, you could protect profitability in the very important quarter that is the second one, despite starting price hikes one month later than the start of the quarter? The second quarter, I'm talking about. Yes. To summarize, we see the second quarter running in line with the first quarter. Okay. With the good news of Mexico. Okay. Thank you. The next question comes from Alberto Villa with Intermonte. Please go ahead. Hi, everyone. Thank you for taking my question. First one is about the change in your net debt. I see that the Forex movement affected your change in net financial position by EUR -9 million, slide 10. If you hold debts in foreign currency, the effect should have been kind of the opposite. Can you just comment on that? The second question: I'm sorry if I missed this point, if you said it earlier, can you just recall the exact weight of India and Mexico in Q1, both in terms of sales and EBITDA, and how they did year on year compared to 2019? Sorry about that. Alberto, you mentioned that we have an effect of net debt. I don't know if you mentioned the last 12 months; were you referring to the last 12 months or the single quarter? Slide 10. Sorry? I'm referring to slide 10, the line with the asterisk on it. Yeah. This effect is mainly due to the difference of EUR 9 million that you're mentioning. Yes. Yes. This is mainly due to the U.S., I think, no? Yes, the U.S. difference and the appreciation of the U.S. that was compared to December have a full-time effect on the appreciation of the U.S. This creates some part of the U.S. debt in euro, a negative effect. Concerning the second question, I repeat the same thing I said during the opening of the call. In March 2019, India and Mexico did EUR 24 million in turnover and EUR 2.5 million in EBITDA. The two countries combined were running at a pace in the last five years of +15% to +20% every year. In March 2021, the two countries combined have done a EUR 17.5 million turnover and zero EBITDA. This should help you to better understand the numbers of the first quarter of 2021. Okay, thank you. Sorry, I recorded just a single number. I want to be more precise about the effects. As you know, the big part is the U.S. dollar debt, and it was 1.23, the conversion rate in December, now it's 1.17. The stronger effect of the weight of the dollar created a negative difference compared to December in the effects. Okay, thank you. The next question comes from Michele Baldelli with Exane BNP Paribas. Please go ahead. Hi, good afternoon to everybody. I have a quick question that relates to the contribution of Arches in, let's say, January and February, because that will be non-organic growth, how much has it contributed? Yes, it's not very material. For sales, the difference is more or less EUR 0.7 million for the two months of difference. Of course, it's EUR 0.2 million for the EBITDA. It doesn't change the trend because I think the decrease of 3.1% - 2.9% in the decrease of sales and the increase of the EBITDA from just 0.1%. The difference is not material. Anyway, EUR 0.7 million for sale and EUR 0.2 million for EBITDA. Thank you very much. The next question comes from Giorgio Martorelli with Amber Capital. Please go ahead. Mr. Martorelli, your line is open. Sorry, I was on mute. Thanks for taking my question. I would like to have availability on the geographical contribution to the EBITDA. I ran a very quick math on the EBITDA of the key geographies, and even in the charts, it turned out that the European market was extremely profitable in the first quarter of 2020. It's a high double digit, which is the biggest margin improvement in the group. I was wondering how we can explain such a large profitability improvement. Is it mixed with the contribution of Fine Art? Is the implementation of cost savings and a central warehouse, and can this margin improvement be improved further with thanks to the operating leverage in the second quarter of 2021? Thanks. Good evening, Giorgio. The analysis is correct, and Stefano will give you some details. There are a few basic comments. Number one is that Europe now is clearly enjoying the central warehouse. Which, by the way, as I said 15 minutes ago, there is always a short memory, but also the U.K. had a project of a central warehouse running during 2019, and, of course, now it is perfectly efficient. The central warehouse in Léon is extremely efficient. Arches has a higher-than-average turnover. Europe last year had been affected by COVID before other parts of the world, before the United States, and particularly before Mexico. Europe, you remember, Italy completely shut down the first week of March, if I'm not wrong, immediately followed by Germany, France, and the U.K. Clearly, if you analyze the difference quarter by quarter, unfortunately, you have to follow the wave of COVID. Europe has been hit earlier than other parts of the world. Stefano may have some more details. I can just reinforce what you say, Massimo, because analyzing the GM and the gross margin, we can see an improvement of 1% compared to [2020]. This is due to what Massimo says: sales mix. Sales mix and channel sales, because I want to focus on selling Fine Art in e-commerce as a double asset on the EBITDA margin. Of course, operating leverage, as you mentioned. Maybe I didn't mention another important point is also that we are still saving some OPEX compared to the previous year because of the better control that we have, just with the tool that we have at this moment, SAP. Due to the project that we started last year to be focused on OPEX to contain the effect and negative effect of COVID, we still are in a position of OPEX saving compared to the previous year. This is due also to the uncertain event of the moment that we have. Also, company people don't travel, so marketing costs and traveling costs are lower compared to the previous year. In this moment, we are also still conservative in increasing the expenditure because the horizon is also very clear, so we are still conservative in expanding this kind of cost. We have a saving also in the OPEX area. This increase is also in addition to the gross margin improvement. Just to mention that compared to 2019, we have more than three points of gross margin improvement because if you analyze just the sale that we insert on page four, the comparison is compared to 2019. You can see that with a lower level of sales, of course, if basics are not comparable, we have a better gross margin. This is a better EBITDA. This is due to the big increase compared to 2019 in the gross margins we have, due to all the projects that Massimo mentioned, two, and due to the sales mix that is better. Okay, thanks. We have a follow-up from Alberto Villa. Please go ahead. Yes, thank you very much. Can you just give us an idea of how the volumes went? Can we get some more detail and breakdown of your top line this quarter between volumes and prices? If I recall correctly, you also implemented a first price increase earlier in the year. How did this first price increase impact your top line, and how did your volumes move? Thank you. Alberto, so far, we have increased prices not more than 1%, because generally speaking, even when we announce a price increase in November, we give the opportunity to customers to buy normally until the month of February with prices of 2020. Now we have announced a second price increase. I would say, so far, it's mainly volume. Thank you. Price increase will be effective really by 1st of June. Just one last question, if I may. Historically, you mentioned a Fine Art EBITDA margin of about 20%. Is this still true now that Arches is fully integrated, or is it a couple of points higher? I do confirm that Fine Art is working with a higher -than-average EBITDA. If you like to have a precise analysis, frankly speaking, we need to prepare, and for the next meeting, we can be more detailed. Generally speaking, I have always given one-third of Fine Art with 20% EBITDA, one-third of industrial countries' school business with an EBITDA between 17% and 18%, and 14% EBITDA of, let's say, so-called developing countries. In this moment, fortunately, we are losing some turnover in countries in which the average EBITDA is below the average EBITDA of the group. Clearly, the impact is slightly lower. The problem we have is that in these new developing countries, in this moment, the turnover is not even sufficient to cover the overhead. In fact, that's why I brought to your attention the numbers of 2019, because in this moment, we have a turnover in those countries, but this turnover is not even sufficient to generate a positive EBITDA. It's a negative contribution to our percentage. The three main legs of the business are still divided in this way. Thank you. Is a follow-up from Niccolò St orer with Kepler. Please, go ahead. Yes. I missed your answer on the - 5% you reported in Asia and the breakdown by country. Can you kindly comment on this, please? The EUR 1 million is made of EUR 2 million for school in India and plus EUR 1 million Fine Art Hong Kong and Princeton, Hong Kong. It is our company specializing in brushes. The EUR -2 million in India, in percentage terms, do you have a figure to share? India? Yes. Sorry, EUR 2 million is the total loss, the total negative effect that we have compared to Q1 2020. Your question is, sorry? No, you have EUR -2 million. I was wondering how this translates into a percentage. I know it's - 20%, - 30%, and -10%. Just one second. Yeah. We will go back to Asia, so just to give you the detail. It is more or less 15%. 15? 15.5%. This is before negative effect? We only did. Exactly, now it's 12%. Okay. Thank you. There are no more questions at the moment.