Good afternoon. This is the Chorus Call Conference Operator. Welcome, and thank you for joining the Sabaf, Sabaf, as of December 31st, 2024, Approved Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Pietro Iotti, CEO of Sabaf. Please go ahead, sir. Thank you to everybody for attending this meeting. This morning, the Board of Directors of Sabaf approved the result on the 31 of December 2024. Those are the number approved. Consolidated results for 2024 full year: revenue EUR 277 million compared with EUR 239.1 million previous year, with an increase of the sales of 15.8%. That means, for our company, the highest turnover ever, in all time higher for Sabaf. The EBITDA margin delivered EUR 40.4 million compared with EUR 33 million in 2023, with an increase in percentage of 22.2%. The percentage of EBITDA on revenue: 14.6% compared with 13.8% in 2023. EBIT: EUR 21.2 million compared with EUR 17.5 million in 2023, with an increase of 21.2%. Group net result: EUR 16.16 million versus EUR 14.2 million in 2023, + 12.7%. The company generated an operating free cash flow positive to tune of EUR 12.3 million. Q4 2024 consolidated result: revenue EUR 64.7 million compared with EUR 62.8 million, growth 2.9%. EUR 8.3 million EBITDA margin compared with EUR 8.7 million Q4 2023, - 4.9%. EBITDA on revenue: 12.8% compared with 13.8% in Q4 2023. EBIT: EUR 3.3 million compared with EUR 4.4 million in Q4 2023. Group net result in the quarter: EUR 3.4 million compared with EUR 5.8 million in Q4 2023. The outlook that we see for our company, the market for household appliances is showing signs for a gradual recovery in volumes. The risks related to the geopolitical situation remain—you can read—tariffs, which are mitigated by Sabaf's direct presence in all major markets, including a productive company in the U.S. in Ohio, MEC, that we acquired in July 2023. Our group expects a sustained growth in 2025, driven by sales for all the four divisions and the new plant in Mexico. The Board of Directors will propose to our general shareholder meeting that will attend on the first day of May, end of April, sorry, a proposal of a dividend for EUR 0.58 per share, EUR 0.58. As a general comment, we can say that after a difficult three-year time period, the current year looks set to see a recovery in the market, as is confirmed by the order that was received in this first quarter. As another comment on the fourth quarter, I can tell that impacted on margins two factors mainly. One is the lower turnover due to the destocking that the main customer decided to do in December, and also the increase of labor costs in the second half of 2024 in Turkey that was not offset by depreciation of the Turkish lira against euro, as usually happened in the previous years. The last events in Turkey in the last week, the Turkish lira got a depreciation of TRY 34 per euro. Fifteen days ago was TRY 37 -TRY 38 per euro. Now it's TRY 41 -TRY 41.5. If we go ahead on the working capital at 31 of December 2024, amounted to EUR 78.2 million compared with EUR 72 million at 31 December 2023. At 31 December 2024, the impact of the net working capital revenue was 27.4% compared with 30.2% at 31 December 2023. Of course, the increase of revenue improved this number. In 2024, the company net investment by the group amounted to EUR 14.7 million, was EUR 16.9 million in 2023. In 2024, the positive cash flow, as I told before, generated by the Sabaf was EUR 12.3 million, was paid in 2024, EUR 8.7 million as dividend. At 31 December, the net financial debt was EUR 73.9 million compared with EUR 73.2 million at the end of December 2023. The dividend proposal I just told you, the Board of Directors will propose to shareholder distribution of a gross ordinary dividend at EUR 0.58 per share for share outstanding on 27 May 2025. Gross dividend of 2023 was EUR 0.54 per share. Come back on the outlook. As I told you in advance, after three years of widespread weakness in demand, the household appliance market appears to be heading for a gradually recovering volumes, partly due to the stimulus and consumption of residential investment resulting from lower interest rates. There are, however, some reasons for uncertainty. The first economic policy measures taken by the new U.S. administration have created international tensions, the effect of which are difficult to predict. The Sabaf global production structure with the direct manufacturing present in the U.S. mitigates the risk associated with the introduction of tariffs. The group expects sustained growth in 2025 as the benefit of the strategy outlined in the business plan. That means diversification of the offering, strengthening of the industrial footprint, development of a group synergy, and growth through acquisition is further materializing. In particular, an important contribution is expected from sales in North America, even thanks to the Mexican production plant that is constantly increasing volumes and expanding its product range, including the first incoming order of MEC, our company in Ohio, very good for the first quarter of this year, as usually happened after U.S. election. For all divisions, sales of new products, which will be partly customized for some customers, will begin and should address transfer market share. The orders received in the first part of the year confirm this trend. The group is strengthening its effort to improve margins through further efficiency measures, innovative projects, and adjustment of price lists. I can add also the increase of volume, of course, will help to improve margins. We are quite positive also on the recovery of the margin in the first quarter of 2025, as we see a growth in percentage compared with the first quarter of last year that I remember was a very good quarter. The first quarter of 2025 will do better than first quarter of 2024. I stop to talk. I am available to answer questions. Any questions that you have, please. I'm here. Thank you. This is the Chorus Call Conference Operator. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. The first question is from Giuseppe Grimaldi of BNP Paribas. Please go ahead. Good afternoon, everybody. Thanks for your presentation. I have actually three questions. The first one relates to the first quarter, you touch upon this topic later. The order book is very good. What should we expect in terms of growth or in terms of absolute value of revenues for the first quarter? The second one is on the new business, new product that you launched on top of the Mexican plant, what should we expect in terms of additional revenue contribution from these initiatives? The third question is on the effects, considering that the Turkish lira has depreciated a lot. Should we expect a sort of tailwind on the profitability for this year? Okay. The question forecast for first quarter, of course, I cannot disclose some forecast, but I can tell you that the order incoming has positive double digits, but we do not know if we are able to do the turnover, because even if we are working on Saturdays, sometimes Sunday in some factories all over in Italy in order to deliver most if possible. There are also mechanical contracts, so we have a strike for extraordinary hours. It is not easy to produce all the orders that we have, but it is a nice problem to have. If we do not deliver in the first quarter, we will deliver in the second quarter. The positive growth, I think I can say between 6%-10% minimum as range of growing. Regarding Mexico, also I can say April and May are also quite consistent in incoming orders, very good in April. Also May that is not completed incoming order, but it looks like positive, very positive, I can say. Mexico, we can last year we delivered roughly EUR 2.83 million. This year we hope to deliver more than EUR 7.58 million. Strong increase thanks to the positive. We also won awarded from quality from Whirlpool North America, from plant of Mexico, and from Mabe. Thanks to those customers, Mabe, Whirlpool, Koblenz, Electrolux, Wolf, we are full of customers that are asking for those from the plant. We are very excited about that. Turkish, the question was regarding the depreciation of Turkish lira. Of course, any depreciation of Turkish lira goes to compensated increase of salary that every year the Turkish government, let me say, asks the company to make the increase of salary roughly 30%-40% more or less in line with inflections. All the year in the previous year was compensated with similar depreciation of Turkish lira. After the election in May, Erdoğan, we don't know how, but was able to maintain the lira more or less stable with euro. This is the reason why in the second half we suffered a drop of margin due to the increase of cost of labor in Turkey. We're talking about more or less EUR 1.52 million more than expected. What we did, increase of selling price, of course, in Turkey was easier with Turkish customers because they are sensitive on that. It's not so easy to increase prices with all the other customers due to the fact that all our customers are coming out from three years very tough in the market. What did our company was able to gain market share? Also, thanks, I'm sorry to say that, but thanks to the failure of some competitors, Robertshaw, declared Chapter 11 last year, the weakness of other competitors in Italy. We got an increase of market share for that because we look like to be a solid company. The big customer preferred to buy from solid suppliers, sorry, but preferred to buy from suppliers that are consistent and solid in the growth, innovation, and delivery service and quality and so on. I don't know if I answered correctly to your question. If not, I'm here. Yes. Yes. Yes. Maybe just a very quick follow-up on the tariff that is at the point that you touched before. Considering there is clearly a lot of uncertainty these days, but do you think your client will be keen to accept any price hike if you have, let's say, a sudden increase in the tariffs? Consider that it's not exactly a matter of increasing our selling price because most of our components are FCO, Franco Fabbrica, Ex Works, delivered to the door of our factories. For instance, Whirlpool U.S. buys some components from Turkey. Is their business to come to collect our components out of our factory? It is a problem of their government to explain why if they have to export from Turkey to the U.S., they have, I don't know how much it will be, 20%, 25%, 10% of tariffs additional. The same things happen, for instance, in Mexico. Ninety percent of our components are delivered to American companies that have plant in Mexico. Same companies, Whirlpool, Mabe, General Electric, others, they have a plant in Mexico. We deliver to their plant. The problem is the problem of our customer to import in the U.S. market. What should happen, but we do not believe that, should be that the end consumer, the final demand could have an impact, but we do not see too much danger on that. We practically do not supply in the U.S. They do not have supply in the U.S. So they have not much choice, I have to say. Last but not least, we have a plant in the U.S. that produces hinges. Our competitors produce out of the U.S. market in hinges. It should be for us an advantage because if, I do not know, from 2 of April, the tariffs will be, I do not know, 20% on the hinges coming from Europe, we are advantaged with 20% less cost for our customers. This should be also a reason why we see the intaking order in MEC in Ohio very strong the first month this year, also increasing the marginality. Thanks again. Very, very clear. Thank you. The next question is from Domenico Ghilotti of Equita. Please go ahead. Good afternoon. My first question is on the ongoing end market recovery that you are mentioning. I'm wondering if you see this recovery quite broad-based in terms of geographies or if you see some differences from a geographical standpoint. Second, you were mentioning the price negotiations. If you can give us an update on where are you today in terms of price negotiation for 2025 and what is, let's say, a reasonable final outcome. Third is just on the margin improvement you are mentioning, some actions to recover profitability because on one side, clearly, Turkish lira is not under your control. What are the, and apart from volume, the operating leverage, what are the other actions that you are implementing in order to recover the profitability? The very last is on the EBITDA bridge, if you can, for 2024. If you can help us in understanding the different moving pieces to get to the 2024 EBITDA. Okay. The first question was regarding the recovery by geography. Yes. We see a good recovery in the U.S. market, quite good, let me say, slow growth, but good in Europe. Central America, good. South America, after a strong growth last year, we expect to be flat. Brazil, quite good incoming order from the Middle East, Egypt, that kind of country. Also, China looks like not so bad for us. India, more or less, as China. Turkey, compared with last year, is going better. Last year, Turkey suffered all over in the second half in terms of volumes. Generally speaking, the recovery is quite general. It was, I think, expected in some way after three years underwater. [Foreign Language], price negotiation. What we did? Of course, as soon we have awareness of our weakness in terms of labor cost increase last second half, we start to ask increase of prices to customers. I cannot hide that it was quite a tough job because customer was not available to recognize increasing of the price due to their weakness of their balance sheet. After we started in September, October, I can say today we have closed almost 95% of negotiation. Someone better, someone less better, but with everybody we got an increase. Someone just 1%, some other also 7%-8% all over Turkish customer because they understand better because they have the same problem in cost of labor. That should be an important issue for the producer in Turkey if they will not be able to increase their selling price on the end market. Generally speaking, I think 2%-3% increase average will have a benefit in increasing price. Of course, we also did all more action possible to improve efficiency in production in the factory, but not only in direct labor, but also on the indirect labor. We tried to work on the fixed cost in order to try to reduce them. Another point that should help, but it takes more time, is that in Turkey, for instance, for many years we got our good margin thanks to the lower cost of labor. We avoided doing investment in automation. Now we are evaluating some investment in automation also in the Turkish factories. Of course, respecting our plan of investment, more or less, that will be similar to last year in 2025. Margin improvement, I just told you the action, more or less. Don't forget that we have very important pipelines with new projects. Thanks to innovation, we are able to get, I hope, more margin for it. We are doing a new important project for Bosch, more important project for Whirlpool North America, for Wolf, for Mabe, etc. Month to date bridge in the 12 months that we delivered EUR 40.4 million compared with 33 last year. The main reason of this improvement came from EUR 6.5 million from increasing of sales volumes. More or less from sales price minus flat, - EUR 30,000, nothing. Negative effect from foreign exchange for EUR 800,000. Positive effect, EUR 2.7 million from raw material cost, lower model raw material cost. Low negative effect from energy source cost. We paid energy EUR 320,000 more in 2024 compared with 2023. Thanks to the higher volumes, our fixed cost absorption gave us a positive effect for EUR 1.9 million. We got a negative effect from the startup India-Mexico induction for EUR 1.4 million. The worst effect, as I told in the beginning of this conference, was the cost of personnel that had a negative effect for EUR 2.8 million. Many of these are coming from Turkey, more than EUR 2 million. MEC, the company acquired in the U.S., gave a positive effect in the beginning margin for EUR 1.6 million. That's all. I think I have been clear in the answer. If not, I'm here. Yep. Thank you. The next question is from Emanuele Negri of Mediobanca. Please go ahead. Yes. Good afternoon, everybody, and thanks for the presentation and for taking my question. I have a couple of questions. The first one is on induction. We generated around EUR 500,000 revenue in 2024. Which kind of contribution do you expect from 2025 and maybe for 2026? The second one is which kind of impact do you see on margins in the first part of the year from increasing energy prices? Thanks. What increasing? Sorry? Energy prices. Energy. Okay. Sorry. Yes. Just okay. The induction business last year started to give us some good hope linked to the fact that we are providing to Haier, our project. The contract with them is made that they are producing on our project. The EUR 500,000, not all, part of 70% of that is coming from royalties that they are paying out. Our net result, net margin, they delivered and sold in the market more or less 15,000 induction hobs made with our project. What I can say is that the design is working well. They are quite happy of that. That also is a positive thing because Haier is one of the major players. We are continuing to innovate with a new feature on the hobs with assisted cooking, with control of the pan, and so on, and several features that we are improving. We did some patent on that. Other customer ordered hobs that we start to deliver in October, November, December. We will continue on this quarter. It's not easy to give you a forecast for 2025 of nowhere because some customer ordered it, but they are testing again. They are going slow. It's quite difficult. I can't tell you a number, but I don't know how much reliable it is. I would prefer not to give you, but I hope some millions, but we'll see. At the project, we are happy because we have five, six customers that started to order. The cost of energy, of course, will have an increased impact on the Q4 regarding negative impact of EUR 4,000-EUR 5,000. Also here is difficult to forecast because everything depends from what will happen in Ukraine, in the Middle East. Today, the cost of gas for megawatt per hour is EUR 41-EUR 42. One year ago, at those times, was EUR 25. In the first weeks of January, it was EUR 54. In January, it was EUR 54. Now it's EUR 42. Last year, it was EUR 26. At At those times, what will happen is not easy to forecast. I can also say that in Turkey, we paid the gas less than anybody. That could help a little bit because they buy gas directly from Russia, and the cost is lower than in Europe. In one quarter, consider EUR 400,000 -. First quarter due all over from the impact of January month. For instance, March and April should look like better. I can tell you that we are putting on our roof of the car factory solar panel that will start to produce energy 1st of September. We are planning to save roughly EUR 500,000 per year with an investment of EUR 3 million as 2.5 MW power installed. Just talking about energy. Okay. Thank you. Thanks. As a reminder, if you wish to register for a question, please press star and one on your telephone. For any further questions, please press star and one on your telephone. Mr. Iotti, there are no more questions registered at this time. Okay. Thank you to everybody for attending this meeting. Have a good day. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.