Good afternoon, everyone, and welcome to our results presentation. I think that I am happy to talk about a positive semester in a way in a complicated environment. There are multiple topics that has characterized this 2022. We have an unusual strong inflation that will continue to be part of our business environment. We have fortunately experienced the restart of the normal business in India and Mexico that have shown a very strong trend in terms of recovery and very positive mood for the coming years as these economies are definitely less impacted by the Russia/Ukrainian situation. We have experienced a normal good level of school business all around the world after a few difficult years of COVID. We are experiencing Fine Art after the beginning of the year in which we have seen substantial destocking. We see now the business going back to normal level of interest and activity. We have recorded compared to 2019 in the first semester in a way a stronger level of turnover in the area of +7%, which is still important. We have unfortunately managed a shutdown of our plant, our different plant in China for COVID reasons during March and April. That has caused us unexpected difficulties in producing on time and delivering on time. We have had a bit of extraordinary higher level of inventory due to the delays of the production. We experience in a good level of orders a problem in the Anglo-Saxon countries with a lack of labor force, which is definitely impacting our level of turnover. In other words, despite the turnover is looking very positive, it could have been better. This problem, for the moment, we really don't see a solution in short term. The expectation for the remaining part of the year, as we had such a strong first semester, of course, we are confident that, the expectation we had, for the 2022 now will be, definitely easier to reach our numbers, despite just a few hours ago, our customer number one in the world, Walmart, has announced a strong restructuring, due to their profit warning announcement of the other week. The environment is not easy, but the history tell us that, both school and fine art, tend to be acyclical, in a recession period. These businesses, normally speaking, do not follow the cycle, of the economy. Fine art is a little bit more discretionary. In fact, we have estimated, especially in 2022, we have seen consumers moving after two years of limited freedom, traveling more than usual. We have also considered this effect to impact negatively the demand of Fine Art, but we do expect from September the situation to go back to normal. All in all, we have been able to maintain a very good level of profitability despite the strong inflation in cost side. I think we announced more than one year ago that we have been able to transfer the cost increase to the consumer. We are doing this. The fact that you see a lower average EBITDA on sales, it's more related to the fact that we have a different average weighted average of the turnover in India and Mexico that historically has a lower EBITDA. I think that now the group is showing, I would say, a strong capability to perform, to keep under control the difficult environment, and to execute the expectations. I ask Stefano to move to the numbers, and I will wait your questions. Thank you. Maybe I think that maybe we can go to the presentation just when to have an overview of the numbers together. I kindly ask to go to the presentation page 4, and we start to analyze the core business sales trend. Core business sales of June 2022 close to EUR 390.6 million, with an increase of EUR 65.9 million compared to June 2021. Plus 20.3%. Of course, we have to analyze this comparison also excluding the FX effects. FX effects on the core business sales is positive equal to EUR 20.6 million. Main part is referred to North America U.S. dollar for $15.7 million, and the remaining part is referred to Central South America, mainly Mexico, Argentina mainly for $1.9 million. The other part is referred to Asia, India for EUR 3.5 million. U.S. dollar had an increase of 9% compared June 2021. Mexican pesos, 9%, and Indian rupee, +6%. Excluding this effect, the core business sales show an increase equal to EUR 45.2 million +13.9%. This increase is mainly focused in Asia for EUR 26.8 million +103.9% in Middle and South America for EUR 13.1 million +59.7%. North America for EUR 3.4 million +2.2%, and Europe plus EUR 2.1 million +1.7%. As Massimo already mentioned, the decrease is concentrated mainly in the school business. For other part, also in the industrial business. If you go to page 5, we can see the EBITDA adjusted trend. EBITDA in June 2022 is equal to EUR 64.8 million, with an increase of EUR 6.3 million +10.7% compared June 2021. As for the revenue, we have an FX positive FX effect equal to $2.5 million. That, to simplify, is totally referred to U.S. dollar. There was a compensation between renminbi and Indian and Mexican effect. Excluding these FX effects, the increase of EBITDA, adjusted EBITDA is equal to EUR 3.8 million +6.5%. Some comment from the EBITDA trend is that you can see that the EBITDA margin is slightly decreasing 16.6% compared to 18% that we had last year. This is due to different reasons. Of course, we had a deterioration of the gross margin almost of 3 percentage points compared to previous year, due to the increase of the raw material partially mitigated by the sales price increase. also with also GM, not raw material only, but also logistics costs. Of course, the different sales mix compared to previous year, mainly on the school business compared to last year, where we had a strong increase in the fine arts also, causes or creates a bigger deterioration in the EBITDA margin. Last, maybe reason to explain this difference is due also to a different geographic sales mix by geographic area. Because, of course, being the sales increase in big part located in India and in Mexico, of course, these two areas have lower EBITDA margin compared North America and Europe. This also creates a little deterioration of the EBITDA margin. If we go to page 6, we can analyze adjusted net profit trend. Adjusted net profit, the adjusted net profits in June 2022 is equal to EUR 28.6 million, with an increase of EUR 1.8 million +6.9% compared June 2021. This increase is due, of course, to the EBITDA increase that we had, and we explained before, just before. That was partially mitigated by an increase of amortization depreciation due to the higher CAPEX that we had this year compared to previous year. Also we have in the P&L more or less EUR 2 million or more financial expenses. There are no interest because interest, you can see in the cash flow, are lower, but it is an accounting effect due to the effect of the amortized cost. The real interest on the loan is lower than the previous year. We have also EUR 1 million of more tax, and all the combined effect created this positive trend of net profit with an increase of EUR 1.8 million compared to previous year. If we go to page seven, that is the net bank debt and NFP analysis. The net bank debt equal to EUR 428.2 million, excluding the FX effect, show a decrease of EUR 26.3 million compared to previous year. Massimo pointed just before, we had an increase in the working capital, in particular due to the growth, so in the receivable. But also in the inventory because for all the logistic issue that are affecting the economy, in order to deliver in time to the customer, we plan to increase inventory more than the previous year. This will, of course, be absorbed in the second half of the year. At the moment, as we planned, the working capital is higher than the previous year. This can be seen very clearly, also at page eight, where there is a cash flow statement. You can see that the difference in the free cash flow to equity, that is more or less EUR 34 million negative difference this year compared to previous year, is located in the working capital change in the working capital, where we have a value of EUR 95 million this year, and last year was EUR 58 million. As I say, this difference of EUR 36 million is due to EUR 23 million to the inventory net of the trade payable effect and for EUR 13 million to the trade receivable. I think that I finished with my presentation, and we can start the Q&A section. We will now begin the question and answer session. To ask a question, you may press star then one. The first question comes from Niccolò Storer with Kepler Cheuvreux Please go ahead. Good afternoon. Two questions. The first one, Massimo, if you can update us on the price increases and cost. Are now at a level where your margin is hedged or do you expect further increases from here to year-end? What do you see on cost? Because most of raw materials have started declining. Do you see the opportunity for a positive surprise on margins for the last part of the year? The second question, on the other hand, is more for Stefano, is related to debt renegotiation. If you can give us some more details on the structure, on the cost, on the maturity, etc. Also, if you are going to bear some one-off costs in 2022 for the closing of the previous line and the opening of the new ones. Thank you. Thank you, Niccolò. The question is interesting. No, we have not yet finished to see the impact of the price increase for the simple reason that there is always a gap between the announcement of the price increase and when the price increase is accepted and working in the relationship with customers. I give you a very strong example. From the first of July in North America. We have a 6% price increase that has gone into effect. We have requested and announced this price increase around February and March. Many customers have asked us to allow them to have the back to school without further stress. We accepted, but no longer than first of July. From the first of July, there is a substantial price increase that will go into effect in North America. For what is the costs are concerned, yes, we see a reverse in the trend. I would say that, I mean, everyone is dreaming of seeing costs going down, and try to go back to a normal situation. Of course, our prices will not be adjusted down, for multiple reasons. It will be very important to follow the trend of the cost, to see if we really can enjoy better margin in the second half. In reality, there are different situation. We see plastic going down. From the peak, we are around 15%-20% below, which is good. For example, paper, and when I say paper, I'm not only referring to our paper that we produce, but I am referring to cardboard boxes, I am referring to displays. Here, we don't see any reduction trend, so this is important. We have seen a slight reduction in container costs, so transportation. Down 10% from the peak, but now this reduction seems stabilizing. To summarize, at least we don't see further increase. We are going to enjoy a price increase. For the second semester, we are going to see some positive numbers related to Fine Art, because I would like to remember to all of you that Fine Art seasonality starts in September and October. We do expect to have a good season. I think that yes, at least we are not going to have any negative surprise from margin. Stefano? Yes, Massimo, thanks. I will do a recap of the refinancing. First, we closed the refinancing on the 28th of July. All the refinancing was closed on this day. What was the rationale of the operation that we did? The first thing, of course, was to extend the maturity of the current debt. I just remember that we had two big installments on 2023 and 2024, and the new debt now is moved to 2027 as maturity. We ran a lot, to be honest, to close this refinancing, and it was a successful operation. Also because as you know, there is a big instability of the market conditions. For us, it was really important to conclude, as we already announced. We discussed a lot of times in the previous meeting to be able to conclude this refinance operation before the summer break. Also, in this refinancing, we kept in consideration the use of cash available in the group. We have some cash, some million of cash. We did some effort in order to use this cash to reduce the exposure, the new amount of the loan, in order to reduce the new amount of the loan to use the cash, of course, with some benefit in the interest cost. Also, we try to reduce a little the exposure in U.S. dollar that is more expensive than the exposure in euro. Also we negotiate a wider flexibility in the RCF, in the backup of credit line. Because if you remember in the old financing, we had EUR 50 million of revolving credit facility to support any business need. We used EUR 25 million for the acquisition of Arches, so we remain only with EUR 25 million of RCF. Now we extended the RCF amount to an amount of EUR 75 million. It is in our mind some we say big oxygen for also for the group in order to also to do some efficiency in area where the cost of the loan is really expensive. I mentioned just for instance, South America. The new financing is, as I explained to you, we had an outstanding amount of EUR 448 million end of July of term loan. We refinance this term loan with EUR 365 million of new loan. We also draw down a partial amount of EUR 36 million of revolving credit. This is because the use of approx EUR 80 million of cash that we have on hand, as you know, Niccolò, in June is not the best period for us for the cash. Yeah. Just because of the cash was not available in June, but will be back in the second half, we temporarily approached the revolving credit facility. The real outstanding amount, the new loan, is composed by EUR 365 million of term loan and a temporary RCF draw down for EUR 36 million. The term loan is composed in this way. Also, just to give other general information, we reduced exposure U.S. dollar that, as I mentioned, is more expensive than the euro dollar from a previous position of 40% to a current position of 36% on the total loan. The total loan, as I mentioned, is composed of two term loans, term loan A, term loan B, and a revolving credit facility of EUR 75 million. Term loan A is of EUR 87.5 million for F.I.L.A. and $99.1 million for Dixon. This term loan A is a 5-year amortizing term loan with an increasing plan of reimbursement. Very very small in the beginning and increasing during the 5 years. The average life, by calculation, is more or less 3.7 years. We have the term loan B that is bullet is due in 5 years from the closing, so 2027. This term loan B is made by EUR 111.6 million in F.I.L.A., EUR 33.4 million in Dixon and $44.34 million in Dixon. Just to summarize, the total term loan amount, as I mentioned before, is EUR 365.6 million. The loan is unsecured. We released the pledge on the share that we had in Dixon. About cost, of course, it's not easy to do a comparison between the old loan and the new loan because the life is different, the period is different, we can just do an approximation. The average cost of the new loan is lower than the previous cost that we had. Of course, the old loan was 3.8%-3.9%. The new loan would be more or less 3.5%-3.6% as average cost. The cost, if I can simplify, the structure of the margin ratchet is not very different from the previous one. This was successful because we were able to keep the same structure more or less that we had in the past, with a different and worse situation also for the source of the financing for the bank. We more or less kept the same structure of the margin ratchet and the cost. Of course, we are saving something because we lower the leverage. We will have less loan because we will use EUR 80 million of cash to reduce the outstanding amount and also to use less U.S. dollar compared to the past. In the mix also will allow us to save some interest cost. We did a projection that was also mentioned in the press release with this assumption and using this assumption we are saving more than EUR 10 million with this approach compared to old approach on the new loan. The covenant structure the same mechanism that we have in the past is the leverage ratio. We will not have any testing for June because we just closed the financing, but anyway, we didn't have any problem in the ratio because we closed around 3.6% in June. The new covenant structure is this. We will have in 2022, 3.9 of financial covenants. Then for June 2023, we will have 4.9, for December 2023, 3.2, for June 2024, 4.2, for December 2024, 2.5, for June 2025, 3.5, for December 2025, 1.75, for June 2026, 2.75, for December 2026, 1.6, for June 2027, 2, for December 2027, that we already reimbursed everything, but it will be 1. Just to summarize, the structure is more conservative in the beginning two years and then is more challenging for 2025. I think that is a very conservative for us financial covenant structure. The total cost that we will have rounded are composed by upfront coordination fees, all the commission agency fees, and legal advisor fees will be more or less EUR 60 million. That will be treated as amortized cost in the P&L. You're splitting this EUR 6 million in 5 years? Yeah. It's the same. Yes. It's Yes. It's just, I don't know the English for it. It's count. Prepayment. Prepayment. Sorry. Yeah. It's more or less. Yeah. You are correct. Maybe follow up on this question. The rate is still variable and you're keeping a sort of hedging like in the previous lines or the 3.5, 3.6 is fixed? Second question is considering that I don't know. Go. Well, good question. I have an obligation. We negotiate to have the obligation to 50% obligation on the loan to be hedged. If you remember, the previous loan was 75%, then we increased more or less to 100%. I have till the end of September to close these hedging. To be honest, in my mind, this moment is to keep the 50% of hedging to let the other 50% floating because then I have time to think about, of course. Also, we will have some brainstorming with Massimo and with my advisor. The risk is to. There is not the perfect choice. The 50% is a good approach, I think, and also to let flexible the refinance if something happen in two years, I mean, a positive asset. I'm talking about M&A or these kind of things. We are not in the same position that we were two years ago, where if you remember, in this crazy period, we had one year ago, EUR 23 million negative of mark-to-market, and then we closed with EUR 700,000 positive in July. Without a big sense I would like to avoid situation where maybe I'm blocked for a big mark-to-market. I'm trying to find a balance, in this kind of hedging. I will hedge for sure 50%. Okay. Related to that, you were reminding us of the impact that we have seen over time of both hedging impact on Net Financial Position and also FX movement on Net Financial Position. What happens now that you close the old lines and take the new ones? Do you foresee any effect on Net Financial Position? For the past or for the new one? For the past? For the July For the change from the old one to the new one now. Okay. I did a flexible forward on the mark-to-market on the euro loan related to Dixon. We will not have any asset because its balance was a coverage. I froze the gain to EUR 3.1 million. Of course, the gain could be bigger because then the U.S. dollar was stronger. As you know, I'm not a magician with a crystal ball with FX. We say that you will see not big asset because the total balance between the gain that we had and the coverage that I did. No big asset from the NFP. Okay. Thank you. Thank you. On the mark-to-market, you will have EUR 700 thousand positive effect. To be honest, just to give you some color, in June, this mark-to-market was EUR 3.1 million positive, and it was reduced in 20 days to EUR 700 thousand because then, the curve of the interest changed a lot in 20 days for all the news that you know. It's market. Okay. Okay. Okay. Anyway, we closed with 700. That was crazy, the reduction that we had between June and 20th of July. Thank you. Okay. The next question comes from Pietro Nargi with Intermonte SIM. Please go ahead. Good afternoon, everyone, and thanks for taking my question. I have three questions. The first one is about the top line. You just released another quarter featuring double-digit revenue growth, further accelerating quarter-on-quarter. It would be useful for us if you may provide some indication on the individual performance of India and Mexico, as well as in terms of product mix. If you give a bit more color on the composition between school and office versus fine arts. The second question is about the profitability. You talked about some margin dilution, mostly linked to the different geographical mix. I see in the numbers is that in the U.S., the drop in margin in the second quarter was about 300 basis points, meaning moving from 20.4% to 17.4% in the second quarter. How do you explain this drop in margin? Is it entirely due to the product mix, so the different composition between Fine Art and the school and office? Also regarding the margin, in previous conference call, you give a guidance on the EBITDA for the full year 2022. You are still on track on this guidance. This is the second question. The third one is about the net debt position. Given the level of net debt in the second quarter and the unfavorable working capital dynamics, are you still confident to reduce net debt EBITDA ratio up to 2.5, as stated in our recent interview? You are, your intent is to resume M&A activities by 2023? This is the third question. Thanks a lot. We lost part of your first question. I don't know, Massimo, if you want it, maybe is repeated separately. The questions are multiple. Let me answer and then I ask you, Stefano, your support. Let me answer today easier. Yes, we do confirm the guidance for the full year. We now think that the guidance will probably be the minimum we are going to achieve, but still, we do confirm the guidance. For your comment on North America, I think these are appropriate. Unfortunately, there are two elements that are impacting North America. I would not comment on a different product mix. I would rather comment that we have a substantial price increase going into effect in the first of July. North America, for a different reason, one simple is that we work with a few customers with a lot of power of negotiation. We have been able to further increase prices only from July. Number two, we have suffered huge, and I repeat, huge inefficiencies from lack of labor force. This has had a very negative impact, especially on Fine Art, because as you can imagine, Fine Art, we are talking of multiple lines and the lower value when you prepare an order. When you are in back to school period, you have to ship big orders with a few lines, so much quicker to prepare. With let's say, a guaranteed result because you can ship much bigger value. I would say that Fine Art has been struggling with this lack of labor force. We are starting from July, now that the back to school is over, we are already seeing a very interesting improvement in Fine Art trend. Stefano, I ask you please to answer the first question because I don't have the numbers in front of me. We have just one specification. We don't report anymore between Fine Art and school because as we did, we've explained in the beginning of the year, there is too much gray area, and we don't want wrong interpretation. Maybe it's just a joke, but it seems that Walmart is going to merge in their buyer section, school and Fine Art. It's just a joke, of course, but this tells you a lot. Stefano, can you please answer the first question. Thank you. The remaining two. Regarding the net debt, if I remember well? The first question was the top line divided by geographical area. Okay. If I remember well, you asked how much within Mexico, but I can tell you that. Yes, yes. Correct, sir? Yeah. If you may provide more details on India and Mexico standalone. Yes. We said that Asia is +27% is totally India. This difference of turnover totally due to India sales. Related to Middle and South America, we have EUR 13 million, and let's say that EUR 8 million of this difference is related to Mexico. These are the way. At this moment, if you want to know the turnover in 2022, only third-party including intercompany is more or less EUR 50 million in India, and in Mexico is more or less EUR 24 million, excluding intercompany sales. Also for your knowledge, in the interest that you can see also the make-up of the graphic showing in page 4, just to understand how much is the weight of turnover in Mexico. More or less 14% in India and more or less 9.5%-10% for Mexico. Okay, thanks. About the net A net debt is what happened was in the first half, totally planned because it's not a surprise, and we forecasted, and Massimo can agree, this level of net debt. We mentioned several times that we had the need to increase the inventory for all the crazy situation that we see in the logistics distribution around the world. 50, Stefano, 50% of the Yes. 50% of the increase of the inventory is just inflation. 50, five-zero. is also inflation. Of course, this is normalizing the cash flow. If you see balance sheet value and increase the working capital, Massimo say correctly, this is inflation. And I totally agree on this. But remember that also we have big part of the working capital that will decrease in second half, because it's made by receivable, and receivable will be collected in second half. I think that we will be not far from the estimation of the working capital end of the year. I can say that, of course, we'll be a little lower at the moment to be conservative, because the situation is really not easy. We will generate positive cash. But maybe lower than The amount that we said the path towards a different EUR 40 million of decrease in net debt, maybe we could be in a range of EUR 30 million, I think EUR 10 million, just to be conservative. We have to see the future. At the moment, I prefer to have a conservative approach. Also, if in June cutoff, we are totally in line with our expectations. Okay, thanks. 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 back to school orders in mature markets. Could you elaborate a little bit more, what is your feeling on the back to school in Europe and in the U.S. at the moment? My second question is actually on North America. That's probably the area where your performance was less interesting because I calculated that the organic growth in the second quarter only was flattish. I would like to better understand. Basically, it's the only area that is below 2019. Just to understand the reasons why you had this performance in the second quarter only. My third question is about inventories. In the first half, you had EUR 320 million of inventories. Just to, I mean, you know, your plan to abate this kind of inventories, if you could give us a feeling for the full year in terms of the amount that you expect it to abate. And a follow-up, if I understood correctly, you, Stefano, you were speaking about a target of free cash flow to equity for the year of EUR 30 million, around EUR 30 million. It's correct? And my last question is about your performance for the rest of the year. You stated about good Fine Art margins and not a problem. Basically, probably, your indication of a single-digit EBITDA growth for the year probably could be more skewed to high single-digit. Just to better understand your feeling on this. Thank you. Thanks, Alessandro. The best way to judge the back to school this year is normal. We have a good level of orders. Of course, the key moment are starting from now until the first week of September, in which we will see the level of sellout. Frankly speaking, I don't expect any surprise, neither positive nor negative. We do expect a normal good year for back to school. You have given us an information that the second quarter of North America in 2019 was stronger. I have not on top of my mind this number. I don't know, Stefano, if you can confirm, but I have to repeat what I said. We have big problems of labor force availability. This is creating us some strategic, so not ordinary problems to a level that we are starting a cooperation with a third party logistic to find more flexibility, as in Wisconsin, we have hard time to find workers. Even we have a hard time to keep our workers. It is a problem. It's more or less the same problem we are experiencing in U.K. This is clearly shifting some turnover to July because we have not been able to give the appropriate service. For the outlook of the year, the only problem we have is very simple. We started a year with a forecast, and then the 24th of February, a war came. If you recall, not later than October, November, Von der Leyen was saying that inflation was under control before the June 2022. Now we are in June 2022, and in U.K., they talk about 11% inflation rate. In Germany, 9%. Frankly speaking, I think it's a little bit ridiculous to give forecast that could go beyond our control. I would say that we are going to perform minimum what we have been able to say to agree since the beginning. Could we expect positive surprises? Yes. There are too many factors in this moment coming from starting from Russia, oil, COVID. Too many things that do not should not justify any kind of optimism. It's much better to be realistic. As you could see, and I'm sure you appreciate, the banks once more have given a strong support to the group at very reasonable cost. This is a clear demonstration of the strength and the stability of the group. For the company forecast, we are comfortable to confirm our guidance. If we have some positive surprise, it will be welcome. Stefano, for the remaining part. Okay. Thanks. Stefano? Stefano is Probably on mute. Stefano, are you there? Alessandro, would you like to repeat the other question so I can try to. Yes, of course. Of course, Stefano. In the first half you had EUR 320 million of inventories. I would like to better understand what is, I mean, your idea, your target, your feeling in terms of reduction of these inventories to a certain level. If I understood correctly, the free cash flow to equity expectation for the year is to be conservative at around EUR 30 million. Just to be aware of. Yes, I do confirm. We prefer to be conservative, mainly because. I'm sorry, hello? Stefano? Hello? Hello? Stefano, can you hear us? Sorry, I lost. I don't know where you lost me or if I. You get my answer, Alessandro. You have to repeat, maybe. No, we can hear you. We're on mute. We're on mute. Stefano, you should answer about the free cash flow and, Yes. Maybe I repeat. The EUR 30 million are correct. Sorry, Massimo. For the level of inventory that I do confirm, we are going to reduce before the end of the year. Please, if you can answer. Yes. We say at the moment it is another EUR 50 million. 50. The big Okay, reduction. The big reduction will come from receivables at the moment, because we collect a lot of cash from receivables at the moment is the higher level. Okay. Thank you. As a reminder, if you have a question, please press star then one. This concludes our question and answer session. I would like to turn the conference back over to management to any closing remarks. Thank you everyone for attending this call. Let me remind that, now it's after COVID, it's almost eight quarters that F.I.L.A. is performing as expected. I hope everyone could enjoy this call. Thanks, and have good vacation. Thank you. Bye. Thank you to everyone. Bye-bye.