Good morning. This is the Chorus Call conference operator. Welcome, and thank you for joining the Sogefi First Quarter 2025 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. Olivier Proust, CFO of Sogefi. Please go ahead, sir. Hi, everybody. Thanks a lot for attending this meeting for the first quarter of Sogefi. As usual, I will make a quick introduction, and we will directly jump to the Q&A. I think that the most important for us is that in the first quarter of 2025, despite a lower market, the weakness in the European market with a revenue decline of 2.7% compared to 2024, Sogefi has been able to overperform. The operating results are in line with those of the first quarter 2024, and net income from the continuing operations is higher. EBITDA equal to EUR 33.8 million, in line with the first quarter of 2024, with an EBITDA margin up 13.2%, so better than last year. EBIT stable at EUR 15.1 million, with an EBIT margin at 5.9% of revenue compared to 5.6% last year, so better than last year. Net profit of operating activities amounted to EUR 9.8 million compared to EUR 5.6 million in the first quarter of 2024, thanks to partly the lower financial expense due to the fact that we reduced our debt to nearly zero. The free cash flow from the ongoing operation is positive at EUR 13.7 million, lower than last year. We were up to EUR 29.2 million. Last year, we had recorded in the first part of 2024 huge cash in from filtration business unit that we sold. It was due to the balance of the intercompany with this business unit. We also had in 2025 higher CapEx due to new product. The EUR 13.7 million is in line with what we are expecting for 2025. Our net debt at March 31st, 2025 is at EUR 44 million, including IFRS 16, EUR 0.8 million if we exclude IFRS 16, so that's why I was saying nearly zero, compared to EUR 55 million at the end of December 2024 and EUR 235 million at the end of March 2024. It was, of course, prior to the filtration disposal and the distribution of the ordinary and extraordinary dividends in 2024. That's for the business. I guess that the main question mark is the impact of tariffs. With regards to the direct impact for Sogefi, as we wrote in our press release, the group, Sogefi, especially the Air and Cooling business unit, achieved sales of EUR 214 million in 2024 in the USMCA region, selling components manufactured in Canada and Mexico, mainly to General Motors, Ford, and Stellantis, of which 55% were destined for customer production plants in Canada and Mexico, and 45% imported by customers in the United States. It is estimated that about 70% of the revenue from the components exported to the U.S. are related to the USMCA compliance products, and thus, based on current forecasts, not subjected to tariffs. Sogefi does not directly export to the United States, as its customers do, and does not factor in the United States, and is therefore not subject to import tariffs on materials and components. We do not expect, with the current situation, significant direct impact from the new tariffs in the short term. Of course, we do not know how this will evolve, but the current situation is a slight, even net exposure to a direct impact to tariffs. However, in terms of indirect impact, the main question mark is how the American market will evolve in terms of car distribution. It is reasonable to expect that the tariffs, as they are defined today, will imply an increase of the price of the car locally. Therefore, a potential slowdown of the market is possible. We just do not know what will be the outlook. For the time being, we have not seen any projection of a slowdown of the market. With the current situation, the current expectation of the market, we are in a position to not modify our guidance. That means a slight reduction in sales and the ability to maintain our protection despite the slight exposure to the slight direct exposure. We maintain our guidance. Of course, if we have to face a huge drop in the U.S. market, this could evolve. Sogefi has been confronted in the past already to such up and down in the market, and we know how to react if this happens. For the current situation, we are confident enough for maintaining our guidance. Okay, that's it. Maybe we can now jump to the Q&A? Thank you. This is the 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. 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 Monica Bosio Intesa Sanpaolo. Please go ahead. Good morning, Olivier and all, and thanks for taking my questions. I hope you can hear me well. I have a. Loud and clear. Perfect. I have a few questions. The first one is a general one. Should the worldwide car production fall further on the back of a slowdown of the demand in the U.S., what are the actions that Sogefi can put in place to face further deterioration of the market? This is the first one. The second one is on the suspensions that marked a progression, some progression in margins. Can you just give us an indication for 2025 in terms of margins for this division? The third is on the raw material side. If I'm not wrong, Sogefi purchases raw material from the U.S. for its plant in Canada and Mexico. Should we expect any impact from the duties on this side? The very final one is on the tax rate that seems to be quite low in the first quarter. Do you have a projection for the full year? Thank you very much. Hi, Monica. Regarding the actions in terms of slowdown of the market, we know how to deal with it, and there is a large bench of actions that we can put in place. We can reorganize our plant. We can reduce the number of shifts. We can reduce the number of temps. We can reallocate production among our plants. We are exploring all the possibilities, and you will agree that we demonstrate in the past our ability to do so. We are flexible enough to adapt our footprint, our workforce, to this kind of situation if we have to face a huge drop in the market. Yes, just a follow-up on this, Olivier. I'm assuming roughly EUR 5 million of restructuring charges for this year. Is it fair, or do you think it could be a little bit higher? It depends completely on the magnitude of the adjustment, Monica. Yes. If we had to do what we call chômage partiel in France or CIGO in Italy, the cost would be limited. If we have to do some more important restructuring, the cost could increase. As you can understand, I cannot answer to this question. I will make a very personal remark. Shall we really expect a crisis for many months? Shall we expect that the U.S. will accept to enter in a very long period of time with very high price on the cars and inflation and etc., etc.? Maybe not. Yes. Some people are saying that the crisis could be, let's say, limited in terms of timing, so we will have to adapt in any case. Okay. Perfect. With regards to the Suspension, we will continue to improve the margin of Suspension. We have several projects which are running currently. We already improved the profitability, and we will continue to improve it. Of course, if there is a major slowdown in the market, the profitability of Suspension could remain the same. You know that the more you have, the more the activity is, the more the activity is, the better it is for improving the profitability. We are on track to improve the profitability of Suspension with the current market projection. Okay. With regards to raw material, as said in the U.S., you know that there is a specific rule with regards to the USMCA. With the current situation, the raw material both in the U.S. falls into the USMCA rules. That means that there is a tariff exemption as far as more than 75% of the product, the raw material inside the product, are coming from the USMCA region, i.e., U.S., Mexico, and Canada. We could be, if you are impacted, if you are directly impacted by tariffs on raw material in this region, is if you import products from outside of this region, and if you exceed the 75% ratio of USMCA components. For the time being, as far as we know, because some of the products inside our product are coming from suppliers which are themselves outsourcing their product, their subproduct, as far as we know, and we made some inquiries, we are not highly exposed. We are slightly exposed. So it's manageable. With regards to tax, they are. Can you please give us a quick outlook on the tax rate for 2025? Yes. For 2025, I would say we will be around 30%. Olivier. Thank you very much. Thank you very much. The next question is from Martino De Ambroggi, Equita. Please go ahead. Good morning, everybody. Good morning, Olivier. Good morning. The first question is on the operating leverage, specifically in the NAFTA region. Just to understand what could be the consequence on the operating profit in case of declining sales in the U.S. Number two is on the free cash flow because I remember the EUR 15 million guidance for the full year. I noticed Q1 was mainly driven by higher factoring and lower CapEx. Just to double-check if the EUR 15 million is confirmed and what is the CapEx implied in this guidance and the factoring roughly underlying this guidance. The third is on the customer's reaction in the sense I clearly understand you have a very limited direct impact from U.S. tariffs. We will see what will be the final outcome. I suppose customers will ask for sharing the additional costs due to tariffs. Just to have your comment on this. Thank you. With regards to the cash flow, we maintain our guidance for 2025. Yes, we are roughly at EUR 14 million on the first quarter. We have in front of us some capex for the Air and Cooling business to be done by the end of the year. Yes, the factoring is a little bit higher. Reducing the factoring and including some extra capex on Air and Cooling by the end of the year, we maintain our guidance for EUR 15 million cash for 2025. With regards to the impact on a slowdown of the market in Canada, sorry, in the U.S., my answer will be the same as the one to Monica for Suspension. Depends on the magnitude of the drop. The good thing in the USMCA region is that you can be much more flexible than in Europe in terms of workforce. You have more flexibility to adapt your cost locally. We can react quickly, giving an impact. You have our margin. You can project the margin on potential sales drop. Difficult to answer precisely to your question. Sorry. The only thing that I can say is that in the past, we have been able to absorb the high headwinds. Sorry. Quite impossible to be more precise. It really depends on the magnitude of the drop. As said, we do not believe in a long crisis. We think that we can face a drop of the market, but not for a long period of time. I'm not sure that the U.S. citizens will accept to enter in a recession due to the tariff crisis. Customers asking for sharing costs? Customers are always asking for sharing costs. We have to maintain our margin. We have been able, during the crisis of the raw material, to maintain our margin despite the request of the customer. It will be the same. They need our products. I remind you that we are not selling commodities. We are selling products developed with them during at least two years before the launch of the final car. Before the launch of the car, we will adopt the same policy we have to maintain our margin. There is no reason to share this extra cost due to tariffs. They need our product in their car. We did it in the past when we had to face the increase on the energy and raw material. Our policy on tariffs will be exactly the same. As said, in the U.S., the main region, for the time being, the USMCA deal really limits the impact on the tariffs for this region. The cars produced in the USMCA region, with components coming from the USMCA region up to 75%, are not exposed to the tariffs. Yeah. That's clear. Thank you. Very, very last on the EBIT bridge that you presented by number seven. There is a block of three million for Argentina, which is the biggest one. Could you elaborate on what is the expectation for the full year at least in your guidance? Do you have some information regarding the hyperinflation in Argentina in 2025? Absolutely not. Just understanding your guidance, what is implied. We do not foresee a big improvement in Argentina coming from the improvement of the hyperinflation. If it comes, it will be above our guidance. We do not bet on an improvement in Argentina, that's for sure. In the current situation, we are doing very well there. We have, in South America, a very good team who is really managing very well the ups and downs with their currency. From a pure industrial point of view, they are overperforming. If the situation in Argentina, the economical situation of Argentina is continuing to improve, it will be cherry on the cake. Okay. These three million at the beginning of the year when you provided the guidance were not included. This is on top. The three million, if they remain so for the full year. Yep. Okay. That is the way out. Yeah, yeah. Thank you, Olivier. You're welcome. The next question is from Andrea Todeschini Banca Akros. Please go ahead. Good morning, everyone. Thank you for taking my question. Just a quick follow-up on the Suspension division. I was wondering if you could give us a little update on the Heavy Duty situation. Given this slowdown that we've seen in the last couple of quarters, if you're seeing a sort of normalization of the situation, if you should expect the same trend to keep going. Second question regarding capacity utilization, especially in Romania, how's it looking right now? If there will be ever any plans to move additional production capacity over there and aiming for some extra cost savings. Thank you. With regards to heavy duty, we do not foresee an improvement of the market in the coming months. We will deal with the current situation. That is for sure. With regards to Romania, we are performing there better and better. You know that in the past, we faced there some industrial issues, but let's say that most of them are behind us. Yes, Romania is an option for rationalization in suspension. You can understand that I cannot explain on this. Of course, I understand. Yeah, Romania. Very much. 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 Monica Bosio Intesa, San Paolo. Please go ahead. Yes. Thank you. Just a final question on China. Looking at your turnover on China, can you remind me what is the weight of the revenues generated with the local Chinese players? The weight of the local Chinese player, they are in the. Slide six? Slide six representation is around. That's at the group level. Okay. I take it. China is China. For the timing, the sales with the Chinese players are in China. Yes. The 6% is on China. The 6% at the group level is on China. Okay. Thank you. Yes. For the time being, there is no Chinese customer established in Europe or even more in NAFTA, of course. We've really. Sorry, Monica. The information is in Slide six is not 6%, is more than 12%. Yeah. Okay. Thank you. Once again, if you wish to register for a question, please press star and one on your telephone. Gentlemen, Mr. Proust, there are no more questions registered at this time. I turn the conference back to you for any closing remarks. Thank you very much. Happy to have further discussion in the coming months. This market is very interesting. Everything is moving every day. That's the funny part of the game. Thanks a lot. Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephone.