Afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the Sabaf Full Year and Q4 2025 Results Conference Call. As a reminder, all participants are in a 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. Gianluca Beschi, CEO of Sabaf. Please go ahead, sir. Good afternoon to everybody, and thank you for attending this call. I'd like to start this call with a memory of Pietro Iotti, former CEO, who passed away last 18th of February. I have been working with Pietro for nine years, and under his leadership, we have shaped what Sabaf Group is today. Today, the board of directors of Sabaf has appointed me in the role of CEO, for which, of course, I'm really honored. I have been serving Sabaf for nearly 30 years now, and I will do my best to continue under the path on which we have been working in the past years. Together with my appointment, the board has also appointed Andrea Bonfadelli as General Manager or Chief Operating Officer of the company and of the group. I've been working with Andrea for nearly 20 years. He is now. He was up to today, the Technical Director of the gas division and Director of the supply chain of the entire group. We've been so working together on many issues, many matters, jointly with full respect one of the other. I'm sure that together with Andrea and together with the other managers of the group, we will grant the continuity which our group deserves, to go on the path of growth that on which we've been working up to now. Coming now to a comment on last year's results. We have closed 2025 with sales at EUR 279.2 million, which is 0.8% growth compared to 2024. At the same exchange rate, growth was 2.2%, a result that we value as satisfactory, considering that the markets have been still in a weak mood and well below what we consider the normal level of demand. In mature markets like U.S. and Europe, we estimate that the final demand for white goods is still around 10% below what is the level pre-COVID. Together with this growth in sales, we have improved the profitability, and this also is important, of course, with EBITDA at EUR 41.4 million for the full year, 2.4% growth compared to 2024. EBITDA margin so reached 14.8% of sales against 14.6%. In general terms, we can say that we have been successful in implementing our main projects, especially we have seen visible results in synergies with MEC, the American company manufacturing hinges, which has delivered solid growth, double-digit growth in sales and substantial improvement in margins. We continue with the fast ramp-up of the Mexican plant, which has nearly more than doubled sales compared to 2024, which was the first year of operation. We have brought the Mexican plant to be profitable in terms of EBITDA just after the second year of operations. We are continuing also to follow our plans in other strategic initiatives, including India, for which we know that the results are expected more in the medium term. Let's say that the feeling also in this case is particularly positive. The improvement of margins has been possible not only because of the ramp-up of the new projects, but also because we have continued to work on the efficiency and the optimization of the operational processes. Also we have also paid particular attention to energy savings and energy efficiency, including also investments for energy solar plant production, and for other initiatives in reducing the use of energy in our internal processes. This good result for the year has also been confirmed during the Q4, which is seasonally a weaker quarter, so sales have been lower than previous quarter, but in any case, growing 0.8% against Q4 2024, and have reached EUR 65.4 million. More important is growth in terms of EBITDA, which has reached EUR 10 million or 21.5% of growth compared to 2024, and EBITDA margin, which is now at 15.3%. Overall, the full year results. This is linked to the fact that during the year, the actions that I've mentioned before have taken full effect. I mentioned particularly good results in North America and in Mexico, in both the U.S. and Mexico, which mostly come from the fact that our group has gained market share. The market itself has not experienced any particular growth. We've been also slightly growing in Europe. Good results have been obtained also in Latin America. Brazil confirmed for the second year a solid market. In this case, we have been gaining share with new deliveries to customers, so higher share. Among the markets that have been particularly weak, we have to mention the North Africa and the Middle East region, which have been affected by the macro political, geopolitical, and macroeconomic situation. This market has been, together with Turkey, the two areas weaker during the year. As regards total investments in 2025, they have reached EUR 18 million, substantially in line with the budget. We have continued to work on improving production capacity in our international footprint that now I consider very next to the optimum. We will continue to grow our international footprint, but we now can say that we have active plans in all the strategic areas of the world. I've mentioned before that we have also worked and invested for improving efficiency of the processes, automation. We continue to work with state-of-the-art technology, which is part of our excellence in production and consequently in results. As regards the financial performance, we can say that working capital is under control, so is substantially stable as a percentage of sales compared to last year. Also the net financial position, which closes at around EUR 75 million, is substantially in line with the end of 2024, and has improved from the EUR 83 million that was at the thirtieth of September. Fluctuation in the net financial debt includes a higher valuation of the put option on the minority stake of MEC, of Mansfield, which is linked to the fact that the value of this minority stake is dependent on the results. The results are improving, and also the minority stake value is improving. This has affected the net financial position for around EUR 3 million. I'd like also to spend a couple of words on the different divisions, where the better performance was obtained by the hinges, in which we have grown shares, implemented some synergies. Let's say that both in Europe and the U.S., we've been growing. We have seen growing sales and growing results. Gas, the gas division is on the positive side, while we have continued to be relatively weak on electronics, for which sales have been declining compared to 2024. Here we know that there are different reasons, among which a higher pressure from Chinese competitors. We are working to counterbalance these issues, and have continued to work on new R&D projects that go in the direction of higher diversification, for which in 2026 and in the years to come, we expect to see the results. We have not, in any cases, slowed down the investments and the R&D on electronics because we continue to consider it strategic for the group, of course. As we continue to consider strategic the induction division, for which results in 2025 have been still really poor, really, let's say, sales are still in the beginning phase. We are going to reshape and to adjust our business plan on this division in order to make it possible that all the work we have done so far can bring in relatively short times to positive results. Because we have known a lot from the experience we've done so far, and it's now nearly the time to bring results. We continue to work also on this side. As regards other decision made by the board today, I'd like to underline the proposal for a dividend of EUR 0.58 per share, which will be submitted to the approval of the shareholders meeting, of course. The dividend is the same as with the one we have paid during 2025. For the moment, I stop here and remain available for the Q&A session. Thank you. 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 touch-tone telephone. To remove yourself from the question queue, please press star and two. We kindly ask to use handsets when asking questions. Anyone who has a question may press star and one at this time. The first question is from Emanuele Negri, Mediobanca. Please go ahead. Yes, good afternoon, everybody. Thanks for the presentation, and congratulations for the new appointments. I have a couple of questions. The first one is on the geopolitical context, which led to some increase in the energy prices in the last few weeks. I was wondering which kind of impact should we expect from this on profitability, also considering all the investments you completed in the solar plant and in general efficiency in terms of energy and maybe in some hedging you have for the next few months. And the other one is if you have any indication on order intake in the first part of the year, just to have a sense of how market and demand is going at the beginning of 2026. Thanks. Okay. Thank you, Emanuele. Yes. As regards energy costs, of course, we are monitoring the situation because, as you know, there is high volatility. We have to be close to understand what is the impact on one side. With sensitivity analysis on our profit and loss, I can say that around 40% of the energy cost of the Italian sites are hedged. On this, we are relatively on the safe side. While as regards energy costs in the other major plants of the group, Turkey and Brazil, we have not experienced so far any impact. Of course, if the situation of the cost of energy, both electric energy and gas, stays at this level, we have to act to pass through this energy surcharge into selling prices. It depends on how during next days and weeks the situation evolves, both on energy and on impacts on other inputs, including some raw materials that are experiencing some volatility. We have all the instruments to understand what is the potential impact and promptly react. As done in the past, in a situation of shocks, we've been able to adjust selling prices relatively fast. Of course, it's a matter that requires attention, but which I consider under control. As regards the order intake, the year has opened with a trend which is of substantial stability compared to what has been on average 25. Specifically on the Q1, we know that we compare with a strong and solid result in the Q1 of 2025. We also know that especially on Q1, we have a difficult comparison as regards the Forex with the dollar that has been much weaker than in Q1 2025. Apart from that, the general trend of demand is on average with 2025. Of course, the situation of the war and the conflict in the Middle East in March can give consequences, and it depends how long this situation goes on. We have a directly limited exposure to the Middle East, but some of our customers work with the Middle Eastern countries. Even if up to now we have not a visible impact, apart from some deliveries that could be postponed from March to April, we are not still in the position to understand if this impact will last, because of course, it will depend on how the geopolitical situation can evolve. This at first can impact specifically that area, but as you can imagine, and as for every business, if the situation worsens, there could be also a more general and global impact. We are in the position to manage and to practically react. The group has proved also with other shocks in previous years to be ready to manage it, and so we will do our best also in this situation. Okay, thanks. Thank you very much. The next question is from Domenico Ghilotti, Equita. Please go ahead. Good afternoon. Let me start saying that also for me it was really an honor to work with Ingegnere Iotti. Now moving to the operations. I have a question on in particular, if you can provide a sense of. So you were saying, okay, broadly similar to 2025 on average. Is it true across geographies, or do you see differences in different geographies, excluding the effects so on the constant Forex basis? Second question is on the M&A pipeline and also M&A strategy. Your comment, you're saying that you will continue on the same trajectory in terms of strategic vision. I wonder if you are still looking at potential M&A, if you can give us an update. Third, just a clarification on the financial charges that I see in the P&L. If you can maybe extract the FX impact from the bank charges. Yes. Thank you. Thank you, Domenico. Yes, as regards the first question, the split among geographies, let's say that there are areas in which we expect substantial growth, mainly driven by, let's say, our own plan rather than by general market trend. This is specifically true for Mexico, for Brazil, for India, and somewhat also for China. In these areas, Sabaf is expected to further grow share during the year. Strategically, looking at the medium term, this will continue to be areas for which we expect visibility for further growth. We expect substantial stability in Europe, in U.S. We expect Turkey to be stable or negative, and we expect Middle East and North Africa to be highly negative during the year, at least with the current scenario. Of course, if the situation changes, this also could be impacted on also on the positive side. At the moment, as you can imagine, the situation is rather difficult in this area. As regards M&A, I confirm that the strategy remains unchanged. We continue to work on open opportunities, taking into consideration the uncertainties of this moment for which we have to understand if this could affect also the M&A strategy. There is no hurry to close a transaction in a few weeks. It's better from my point of view to understand also the evolution of the macroeconomic scenario and the macroeconomic and geopolitical situation. I confirm that we will continue to work on what we have done so far and also scouting for further opportunities. No change in the M&A strategy with the aim of further diversification, both on the product side and on geographies. In the end, as regards information on the financial charges, during the year, we have booked EUR 5 million charges, costs as regards the evaluation of the put option for MEC. For the same put option, we have also booked EUR 1.5 million on as regards a positive Forex effect because these financial liabilities is in USD, and so with a weaker USD, this has a positive impact. Net, the adjustment of the evaluation of MEC put option is negative for EUR 3.5 million, of which EUR 5 million have been booked as financial charges and EUR 1.5 million as Forex income. Okay. Very clear, and for sure, Gianluca, congratulations for the new role. Thank you. Thank you, Mike. As a reminder, if you wish to register for a question, please press star and one on your telephone. The next question is a follow-up from Domenico Ghilotti, Equita. Please go ahead. Yes, I take a few minutes more. You have completed this point, the review of the main price negotiations. You have some visibility also on the raw material cost. Can you give us a sense of what are the main moving parts in 2026 in terms of profitability or cost items? Yes. Let's say, as regards the part concerning sales prices and input cost, we expect that net of the effects of the conflict for which adjustments could be necessary. If we look at the situation up to one month ago, we expect minor changes both on the input cost, because we've been moving in advance to hedge a significant part of raw materials for the year, at least for five, six months. We have made some small adjustments in terms of sales prices. We do not expect any major impacts. Let's say that with the new scenario, as mentioned before, if the impact of cost goes on and goes over the portion that is hedged, we will react by adjusting selling prices. On the other side, the work that we have done during 2025 on improving the efficiency of the factories and the reduction of energy consumption that has fully deployed, especially in the Q4, will continue and will have a full effect on the year. From this, we expect a structural benefit that could bring to an improvement of our profitability for the year. Of course, there are a lot of elements of factors that could impact on one side or the other, but let's say that we are confident to further improve the average profitability for the year, even if volumes as usual will have a fundamental impact on which is also the profitability of the group, because as you know, operational leverage is one of the key issues for us. Okay, thank you. The next question is a follow-up from Emanuele Negri, Mediobanca. Please go ahead. Yes, just a quick follow-up on MEC, which performed really well since the acquisition and also in 2025 has some strong results. Could you give us an idea of the outlook you have for the company also considering the current geopolitical outlook? Yes. Let's say that if we look at its own business for MEC itself, we see a further year of growth, maybe not at the same pace, not double-digit as it has been in 2025, but I confirm that we are working on a lot of projects with customers. Also, thanks to cross-selling, for which apart from what are the expectations for 2026, we continue to be very confident on the potential of MEC in terms of growing sales. And we continue also to work on the operational efficiency and of automation. We've still done just a small part of what we see that is possible to do. Also in this sense, we are confident that MEC will continue to give us a lot of satisfaction. Important to say that MEC is also a U.S. base for the group that could open the option for further products which are already in the product range of our group or which could come. Also the strategic importance of a plant there is one of the factors that we consider of strategic relevance for the future. In this sense, some small activities also for the gas business have started, but this is just an example of what could arrive, what we could reach also in the future by taking advantage of this site in Ohio. Okay, thanks a lot. Yep. As a reminder, if you wish to register for a question, please press star and one on your telephone. Mr. Beschi, there are no more questions registered at this time. I turn the conference back to you for any closing remarks. Okay. Thank you everybody for joining the call. For who attend the conference, we'll see tomorrow in Milan. Thank you again. Have a good afternoon. Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.