Because 2025 marks the end of our strategic cycle, we have announced ambitions, financial ambitions, for 2025 back in our Capital Markets Day in 2022. Because it's also the end of the term of the present Board of Directors and and and my own stewardship of this company, we decided to include this slide number 4 with a a number of remarkable points in our in our journey.

Moving to slide number 5 and starting with the business of today, we we closed 2025 with a very steady growth both on revenue and EBIT, a cycle that comes back from from the early days when this this management team joined CTT. More than that, more than a significant growth along this cycle on on revenues and EBIT, a very significant transformation.

We see a reasonably stable mail revenue profile throughout these years while the company was growing at around 11% on revenues, and on EBIT, a very radical shift in the sources of value creation since the company was a was a mere mail company with an early bank that had been born a few years before, back in 2018, and now we are mostly an e-commerce logistics player, whereby the main contribution for revenues and for EBIT comes comes from that. Moving to slide number 6, we we highlight the achievements of this the end of this strategic cycle, just to recall the the ambition, the targets that were set back in 2022.

We should close 2025 with revenues ranging from €1,100 million to €1,250 million, or a 7% to 10% annual growth. We have indeed exceeded that target by by posting €1,288 million for the year as a consequence of CTT having been the fastest-growing e-commerce logistics player in Iberia throughout the cycle.

Then our second ambition was related with margin, whereas the the the target here was to reach an EBIT in 2025, recurring EBIT, between €100 million and €120 million. Again, with a very significant, almost doubling the the ambition on revenues, growing between 14% and 19%, we ended up 2025 closer to the right-hand side of this of this range with €115 million, which was exactly the value we have guided the market for.

A third objective, very important, regarding profitability of the bank, where again by having posted a return on tangible equity of 13.2%, we have exceeded the announced range that was, as you might recall, between 11% and 13%. All this in a combination that we classify as optimal between shareholder remuneration and the capacity of growth that exactly within this cycle combined significant investment on on capex for organic growth, capacity expansion, investment on IT expertise, but also on on non-organic growth.

Closing the the overview about the cycle, I would invite you to moving to slide number 8 for a for a deeper analysis of the year. So 2025 exhibited a resilient organic growth with revenues up 8% and recurring EBIT 16%, part organic, part non-organic, as you know.

That's why in the in the bridges that we show in the in the slide, we have decided to include what would have been the the pro forma numbers if we had acquired Cacesa in the beginning of the year. In a like-for-like organic growth, this represents an 8.4% growth on on on revenues, but indeed a real growth of 16.2%.

Moving to EBIT, these numbers amplify significantly, more than doubling, or almost doubling in revenues: 16.2% of additional EBIT, and 35.3% if we consider the actual growth on EBIT. The profile of growth is of course mostly in terms of revenues, the the highest proportion of growth was obviously on e-commerce solutions, but also on EBIT.

This this year we have posted a very interesting growth on the margin of Mail & Services. With with e-commerce solutions, competitiveness and growth profile enhanced of course by the fact that we have included Cacesa, which indeed makes CTT one of a kind in Iberia for e-commerce logistics.

I will come back to this point later in the presentation. Moving to slide number 9, deep-diving on on the on the analysis of of e-commerce solutions, we have resumed in the quarter double-digit growth in e-commerce volumes.

As you might see, we started the year 15% growth quarter on quarter, and I'm sorry, year on year for the quarter. Then it slowed down, and as guided, growth in in volumes grew again in the fourth quarter 11.3%, hence the double-digit growth.

This in a way is a consequence of an Iberian e-commerce outlook that remains quite competitive and and therefore, we we have produced this growth on revenue associated with the growth on volumes. Moving to slide number 10, a slightly deeper analysis on both revenues and recurring EBIT for for parcels, we we have posted an 11% growth on the year for parcels organically, but then including the the inorganic effect of Cacesa, a 38% growth.

Numbers that are much more impressive when moving to the right see the contribution of Cacesa implying a significant growth on the generated EBIT of almost 60%. Again, this is a consequence of CTT being a one-of-a-kind, and in fact, with Cacesa, we may state that we create more value per object handled.

Therefore, as a summary, we have shown significant growing EBIT, recurring EBIT, while investing in expansion, capacity, and quality. A very good year for e-commerce solutions, but also a very good year for Mail & Services.

For that, I will hand over to João Sousa to guide us through the next slides.

Thank you very much, João. As you can see on slide 11, as previously mentioned, CTT operates across three segments: E-Commerce Solutions, Mail & Services, and Bank.

On the section Mail & Services, we like to highlight the increasing relevance of services in this segment. As you can see, on Financial Services & Retail, public debt placements increased approximately 147%, normalization development compared with previous years.

I would like also to highlight that in 2025, we marked a consolidation of the app Aforro Digital, that around 10% of the operations are already conducted in the app. Maybe just to also give you the number on the first quarter of this year, it's already more than 12%, so that's a good number.

The customer base on the app are double in 2025. This means that we are bringing new customers to Certificados de Aforro by the app, new generation, lower ticket, but more frequency and more recurrent on this.

As also on Retail & Financial Services, we are very concerned to developing selling services on this network to have recurring revenues. As you can see on the right side of the slide, health plans customer base increased more than 23,000 users on this year, it's a very good number.

Also I can tell you that we have strong growth in insurance distribution, particularly driven by the health insurance that the product that we launched in the last quarter of 2025. On the next slide, coming for mail, as you can see, we see volumes decline 8.6% when we look for '25 compared with the last year, reflecting ongoing structural trends.

However, mostly of this decline was offset by the price increase per item. Importantly, as you can see also in the right side of the slide, service segment showed a strong growth, enabling the overall business area to grow year on year.

As on this area, we are developing business solutions and payments, also financial services, and the idea is putting this business area growing that in a way compensate the decline of mail. In this year, we already saw that with this increasing 1.5% compared with 2024.

On slide 13, even with this decline of mail, we are still working on profitability, with continue to restructuring the central structure and also operations and all the areas we have. With this, we see EBIT reaching €32.8 million in '25, this is growing 40 sorry, 46.3% against last year.

That means EBIT margin improving to 6.3% comparing with 4.4% in 2024. These results in more demonstrate clear operational discipline that this company show in the last years.

With this, I pass to Guy Pacheco.

Thank you, João, and good morning. I will start in page 14 with Banco CTT's operational highlights, where we see a very strong growth once again in business volumes growing 12% year on year in the quarter, with a special highlight to the off-balance savings that grew 26.1%.

That also drove banking revenues that grew 23% in the quarter. Our net interest margin stood at 2%, a slight decrease year on year.

In terms of profitability, a small decline of 4.3% as we continue to invest preparing the next growth phase of the bank. Also, the bank delivered all the commitments that promised for 2025, where you can see all those green tick marks.

We delivered the targets for business volumes, current accounts, return on tangible equity that stood at 13.2%, and also in profit before tax. 2026, as said in our Capital Markets Day, it will be a year of focusing and accelerating the business of the bank.

I'll move on to the financial review starting in page 16. These numbers include the inorganic effect of Cacesa, and as such we see a strong progress in all the metrics.

I will highlight the net profit for the full year where we grew 11.4% and a strong cash flow generation at a consolidated level, be it on the quarter with growth of 19.4%, but also in the full year with 13.2% growth. Now moving on to our revenue bridge, where we continue to see e-commerce as a core catalyst of our performance.

In the full year, it already accounted for almost 49% of our revenues, this very marked shift of the profiles of our revenues. In the quarter, contributing with additional almost €20 million, plus a growth of 11.3% driven by volume growth.

In the Mail & Services, as João shared, a flat-ish performance with business solutions and services offset by mail decline. The bank growing 23% in banking product.

In the slide 18, we can see our operational costs that grew 16.4%, mostly coming out of our E-Commerce Solutions division, with 11.6%, slightly above our activity. As we saw, unit costs increased due to the investments on capacity to face the peak season.

In Mail & Services, with a decline of 1.2%, where we continued to implement efficiency and restructuring measures that are bearing results. The bank increasing €8.1 million in the quarter, or 31.7%.

This is a factor of not only increase of cost of risk, that now stands at 0.9%, but also in the investments in staff, commercial staffing, and IT in order to secure the next phase of growth. In page 19, we can see our EBIT performance in the quarter with a very resilient growth of almost 11%.

Our margin stood at 10.9%, and that was driven by Mail & Services and e-commerce. E-commerce growing 3.9% with margin compression, with a focus on quality during the peak season.

The Mail & Services division growing 36% driven by the performance of services and mail efficiency measures, and a flat-ish performance on the bank, where we continue to reinvest resources in future growth. With that, well, I'll move on to free cash flow performance.

In page 20, we see our consolidated free cash flow that stood in the year in €83.6 million, and our net financial debt now stands at €7.9 million at year-end. Page 21, where we see the same numbers, but excluding the consolidation of the bank, where we see our leverage ratio finishing the year at 1.9, following a very strong cash flow generation in the fourth quarter.

This is below the 2 times as we guided the market. The free cash flow for the year, excluding the bank, stood at €46.9 million.

That, as we see the leverage growing from 1.6 to 1.9, that is a very modest increase if we take in consideration that we invested €90 million in the acquisition of Cacesa, and still concluded €14 million of the remainder of the buyback announced back in 2024. That shows the strong generation of cash of the company and solidity of our balance sheet.

With that, I'll hand over to João Bento for his final remarks.

Thank you, Guy. If you look for slide 23, it's a new slide that we decided to include because, as I'm going to explain, we are somehow guiding for weaker first-quarter results, even with eventual decline year on year for the quarter.

The overall message that I want to stress is that we are posting a full-year growth guidance despite the first quarter being marked by significant external events. I don't want to guide you through all the details, but basically three classes of events.

The first one, the obvious Middle East geopolitics that became aggravated by the recent war with Iran, where we are seeing supply chain disruption with impact on volumes and of course impact on costs. On costs, mostly driven by fuel costs impact that for linehauls and last-mile costs for us are extremely important.

On volumes, we have, well, less bad news. We have a short-term effect because we see pre-noticed volumes remaining high, meaning that people keep buying.

Our large e-commerce clients out of Europe keep pre-noticing significant volumes, but then these objects don't reach Iberia. They are somehow through slower routes, land routes, sea routes, some of them stuck in intermediate airports.

This disruption in logistics are returning. The good news is that this is not lost business; this is just delayed business.

With a short-term impact that is the less serious of the aspects that I've seen. A final note on this volume aspect, which is we see very strong growth observed in non-Asian clients.

This is not a replacement; this is, in our view, not of course because of the geopolitics. This is because we are becoming more reliable and better perceived operating in Iberia, and some of these clients are growing significantly.

For example, with Zalando now posting 5 times more objects than they guided us when we started the relation with them recently. The second line of concern is regarding this past events during this quarter.

We had this Hurricane Christine in Portugal and in southern Spain, unfortunately very well known for all of us. We had two significant negative effects with this.

One, significantly lower walk-ins in our retail stores, and this lower volume of course implies lower business. Significant operation disruption, abnormally high operating costs to maintain operations and quality of service.

This was not only in Portugal, which is probably better perceived by some of our analysts, but it was also very significant in southern Spain. With weather stabilization, we expect this to return to normal, although we have now been receiving warnings of hopefully much smaller storm reaching the Portuguese coast.

The final line is in fact related with the end of the year and some spillover to January that then will have an impact on first quarter. We had a very concentrated peak season in 2025, which had two effects.

One, the ramp-up was I would say less efficient than ideally because we were ready in capacity, and volumes came a bit delayed. The volumes that were processed were very good.

We've seen that before in the presentation. Then because of the concentration, we had, as always, the more volatile and the less smooth is the evolution of volumes both upwards and downwards, we have to deploy significant effort to maintain quality.

Unfortunately, especially in all the Mediterranean southern Spain, from Málaga or the Andalusia region, Valencia, and up to Barcelona, we had significant costs to be able to keep quality. Just to give you an idea, in Málaga, the demand for our services multiplied 2.5 2.5 times because the market basically failed, and CTT being the most reliable operating company over there.

This had very significant impacts on costs, and this effect spilled over to January because it took us almost to the end of January to be able to process all this backlog that in a way represented volumes being processed and the due costs without the corresponding revenues. Finally, because last-mile capacity is being adjusted, and it is adjusted already, and we are seeing already favorable impact on unitary costs, namely on handling, this is an effect that, well, it's here, it's registered, but fortunately is resolved.

With this, I would invite you to move to slide number 24, where again we are issuing a growth guidance notwithstanding a high volatility context. Now with less detail, the first aspect is that the number is in fact at least €125 million.

Moving to expectations and risks that somehow framed the reason why we have posted this guidance, the introduction of new customs regulations will create future growth opportunities for Cacesa both possibly on B2B, but certainly because where we see the market evolving and the national authorities in Europe evolving to and moving to, this will represent for sure, as predicted and many times shared with you, additional services and more expensive services for the customs, good news for Cacesa. In the short term, we are expecting some penalization on customs volumes in the short term.

I think that we could probably resort to what happened back in 2021 when the VAT de minimis, and while the customer experience was very much the same. People kept buying with the same ease, although paying VAT, but just because there was a change, we saw short-term volatility that then resumed.

This is how I looking at volumes regarding the introduction of this new customs regulations. We expect high single-digit to double-digit growth in CEP in a scenario of limited impact of the new customs regulations that will, and let me repeat that, get a favorable kick-in for additional services for Cacesa.

Then the, unfortunately, now very common and very present geopolitical situation and the disruption of logistics chains that I referred to, and this leads to high volatility in volumes and higher fuel prices. Here the assumption is that this conflict will not be too prolonged.

This is not going to be a new Ukraine war, and so that's why we have decided to be so explicit in the assumptions that are guiding this guidance. Finally, to conclude, recurring EBIT of at least €125 million represents at least 8% growth, anchored on efficiency measures on Mail & Services and central structure, in line with what we've doing recently.

Here we are also guiding for restructuring charges associated with this that will then have obviously a positive implication in efficiency. Then recurring EBIT excluding the bank to grow 11%.

We don't guide a number for the bank, but if you look at the right-hand side of the 2026 column in the left-hand side charts, well, basically the gray area is more or less the same size, which is totally in line with what we have set in the Capital Markets Day, and Guy already noticed very clearly the bank is now on a ramp-up phase for a higher growth, and so this is very much in line. The positive thing here is that the growth that we are posting on EBIT is in fact the growth that comes from CEP volumes growth, and again with a not very prolonged fuel price hikes.

Therefore, the bank will have a flat recurring EBIT while preparing for a higher growth. With this, I would invite you to move to the final page.

Again, we are delivering future growth by building upon our very strong strategic foundations that were clearly shared with the market back in November. Looking at first, 2025, a strong financial and operational performance for the year.

Revenues and recurring EBIT growing 16% and 35%, thus meeting or exceeding our Capital Markets Day targets for '25. This growth has been driven mainly by E-Commerce Solutions, and we'd like to stress more and more that we want to be an e-commerce logistics player, this is not only very good news, but also aligned with what we see being our future.

Now the largest business line, and in the quarter for the first time in our history, E-Commerce Solutions represented more than half of our total revenues. With this, we set a growth outlook for 2026 while navigating regulatory and geopolitical developments with confidence.

I believe the company is better prepared than ever to face a year that, for reasons that are related with external context, will be, well, possibly very challenging. Moving to the second bucket regarding the cycle, well, all the targets were successfully achieved, successful execution then, which builds confidence for the 2026-28 execution.

In my view, we have posted ambitious targets, not less ambitious than we had before, and the fact that we have proven and we have executed according to the ambition that was posted back in 2022 gives us and should give the market confidence that we are going to deliver again. We are strengthening our e-commerce logistics footprint through the integration of Cacesa, through the joint venture with DHL that by the way was approved yesterday, just announced to the market as you have seen, new automation investments, new engineering expertise, expansion on our lockers network throughout Iberia, and much, much more robust retail cross-selling with significant contributions for Mail & Services.

Then the never-ending efficiency measures and restructuring of Mail & Services and the corporate center stabilized margins in 2025 despite falling volumes. Again, I would like to stress something that both João and Guy mentioned, that we saw it very, very clearly, that the revenues generated by business solutions, by services in general at large, and of course retail services as well, services at large, compensated, more than compensated, the revenues lost by mail, that were somehow favored of course by the price increase, but that was not sufficiently.

Finally, we believe that our portfolio is poised to take full benefit from the EU upcoming regulatory landscape thanks to Cacesa. This is not because we are more than anyone involved in the customs area of the value chain, it's also because Cacesa is in a very large number of European countries.

We have a very privileged viewpoint, both because we talk with all the relevant Chinese players, all of them, and also because we talk with a very diversified number of national authorities, most of them in Europe of course, but although the regulations are European, we are seeing very differentiated interpretations of the law, and that's why we believe we're going to be better positioned than anyone to navigate this regulatory change. Finally, a word on the financials.

Cash generation supports financial resilience, the attractive shareholder remuneration, and it is a significant advantage for the upcoming cycle. Because when I say that we are better prepared than ever, it's not only because of technology, operations, efficiency, knowledge, it's also because we have a very strong balance sheet, and we are prepared for the future better than ever before.

The strong free cash flow generation reduced our leverage to 1.9 as guided. Now with DHL, this will improve significantly with the completion of the joint venture.

We have also once more complied with our announced dividend policy and are posting a dividend per share of 19 cents, and of course are completing the share buyback that was announced recently. With this, I believe we are ready for Q&A, and I'll pass the management of the meeting to Nuno.

Thank you, João. As João said, we are now available to take questions.

As a reminder, analysts that wish to place a question should click the button to raise your hand if they're within the Zoom platform, and we will give you access to the microphone. Analysts dialing from a phone line should press star nine to raise your hand and star six to unmute yourself, and we'll also give access to the microphone.

Our first question comes from João Safara. João, please unmute yourself.

You have been allowed to talk. Unmute yourself and ask your question.

Yes, hi. Good morning.

A few questions from my side. First one on the guidance, just wanted to have some clarification here.

Let's assume that we are on the low end of the guidance, meaning €125 million of recurring EBIT. Is it fair to assume that there is barely any impact from the DHL synergies if we were to go to the low end?

Just to understand a bit. I know there are several moving pieces this year and uncertainty, but at least on the DHL side, how do you see the synergies playing this year?

Then also linked to this, on the timing of the deal, just wanted to understand what is your degree of confidence that the May 26 for the completion of the deal will not derail? Just want to have your view there.

Then, a last question, there were some news reports on Bloomberg last week. You probably saw that saying that you invited advisors to pitch for a potential sale of the banking business.

We know you are focused on growing the bank, but are there still options being considered in terms of someone joining the Banco CTT or what would be your role in this process of growing the bank? Would it be a minority role or still a controlling role?

I don't know. Just if you could a bit elaborate on that, that would be great.

That's it. Thank you.

Thank you, João. Your assumption regarding the guidance is right, and indeed, I think I may confess that this guidance was designed and approved yesterday in the Board of Directors prior to, as we've seen in the news, that the deal would have been approved yesterday.

Yes, that is a good assumption. Then maybe Guy can complement my answer with the details about how we see the synergies deploying for the year.

Let me move to the other two questions. We are very confident that now, because there are of course a number of preconditions, but now the most relevant one was this one, that this one didn't depend exclusively on us, only on our collaboration, but what we have to do now gives us great confidence that this deal should be closed, I would say, in early May.

Yes, we feel quite confident on that. Then Guy will also take this for the issue of the unfolding of the synergies.

Finally, on the bank, I would if you allow me, correct your statement. Bloomberg does not say that we have hired consultants to discuss the selling of the bank.

We would have denied such a statement. They say that advisors were contacted for, if I'm not wrong, discuss options for the bank.

I don't know, and I don't care actually. What I may say is that we are very, very happy with the development of the bank.

I must also add that we keep receiving manifestations of interest, and of course, we look at them very seriously. That's it.

We don't want to add anything more. The statement that we see ourselves in the long term mostly as an e-commerce logistics player, and that we'd like to have a lower importance of the bank in our portfolio, stands.

Having said so, we are of course rational agents and react to manifestations of interest that, I must say, are probably today more frequent than ever before. With this, I will ask Guy to complement the other questions, please.

On the guidance clarification, back when we announced the transaction of the JV and subsequent to Cacesa, we said that the synergies of Cacesa will be faster to materialize than DHL, and we guided the materialization of the synergies between one and one year and a half after the completion of the transaction. This year, the only impact that we are assuming is the consolidation of DHL Portugal that will occur after May, to remind that we guided the value of EBIT of the Portuguese operation on a full-year basis of €2 million, around €2 million.

I would take the opportunity also to clarify what we are seeing on the guidance. We chose to post a conservative guidance because of two functions.

First, this year is a transition year for the bank, and one of the growth engines of the company will be stalled for one year. We see the bank growth resuming after this year in '27, '28, having significant growth after this repositioning of the growth engine of the bank.

Our remaining growth engine, that is parcels, has this year a lot of sources of volatility: one from regulations, that is de minimis, and the other from the geopolitical context. Just reminding that most of the sources of e-commerce originate on Asia, and most of the flows from Asia to Europe come through the Middle East.

With this disruption, we are seeing what we understand as temporary disruption on these value chains, that we cannot estimate how long they will take. We continue to see, as João mentioned, resilient demand from our customers because the pre-notices continue to be very strong, but the transit times from Asia to Europe are expanding immensely because of the lack of flights in the Middle East.

In terms of de minimis, this is a year of some volatility. We see in medium term de minimis as positive if any positive impact on our business because we see higher value chain of logistics in Europe, as this regulation will force Chinese platforms to invest in Europe, and that will entail opportunities for CTT as we have assets through Cacesa throughout Europe, and that will mean more opportunities to grow.

In the short term, because of all the news flow that will entail and a short-term impact on pricing, we see some volatility on customer demand that as we saw in 2021 with the VAT de minimis will be temporary, and as such, but nevertheless impacting 2026. With this volatility that's why we chose to have a conservative guidance at this point.

Thank you, João. Our next question comes from Joaquín García Quirós.

Joaquín, you have been allowed to speak. Unmute yourself and ask your question.

Thank you.

Yes, hello. Thank you for taking my question.

Most of it was on the guidance, which was already been discussed. One on the DHL deal, is DHL going to acquire the 25% of Cacesa, or what can we expect there?

Thank you.

Thank you, Joaquín. What I believe was announced before is that DHL is interested in participating in Cacesa.

If that materializes, it will be in a percentage similar to the joint venture, 25%. Because we didn't want one deal to affect the other, and namely the approval by the European authorities, we have decided to keep this apart.

We keep developing Cacesa by ourselves and discussing with DHL if, when, and in which terms they will join. Yes, that principle interest remains active.

Thank you. May I ask another question?

Sure.

Thank you. Can you quantify the impact from the hurricane at the recurring EBIT to know a bit on a like-for-like going forward what can we expect for 2027 onwards?

Thank you.

At this point, it's difficult to estimate. We saw obviously impact on volumes that are retail-linked as debt placements in Financial Services, B2C mail, and also on the bank side, and some costs because of the disruption in 19 buildings that we have throughout Portugal.

Also

more than 100 100,000 companies around these areas was closed for these weeks. Is an area for e-commerce companies that was closed during this time also.

Thank you, Joaquín. Our next question comes from Filipe Leite.

Filipe, to unmute yourself, please press star six and ask your question. Thank you.

Hi. Hello, everyone.

I would like to congratulate João Bento for this incredible journey at CTT. Regarding my questions, I have four, if I may.

First one is actually a follow-up on full-year guidance and your expectations of the decline in the organic EBIT for this quarter, first quarter of this year, just to understand, because we don't have the contribution of Cacesa during last year, for us, it's difficult to calculate the organic growth. My question is, what kind of organic growth should we expect for second, third, and fourth quarter to reach your full-year guidance, or if you prefer, what is the organic growth assumed by us in your €125 million recurring EBIT guidance for this year?

Second question on working capital, and if you can elaborate on the strong performance of fourth quarter, and if we should expect some reversion of this working capital inflow in the upcoming quarters? Second, on DHL, just to confirm that the initial expected €69 million net cash impact is still confirmed despite the delays in the approval of the deal.

Last one on Business Solutions & Payment, because the revenues of this specific line dropped for the first time in fourth quarter in the past two years. Can you explain this evolution and how should we expect this business line to evolve in future?

Thank you.

Maybe I will start, and as well...

Let me just start by thanking your congratulations, Filipe. The €69 million, just

so no difference on the announcement, only to clarify what was announced, this was assuming a cash-neutral transaction. There is to be expected some adjustments by net debt evolution during the period.

Then on working capital, Filipe, we are working with an estimate of neutral working capital evolution. As there is some seasonality, normally we have more working capital investment in the first quarters of the year that normally we recover throughout the second half, and that is what we are expecting.

On the organic growth, we are assuming some organic growth. You should assume that Cacesa will contribute more or less €4 million in the first four months of the last year.

In Business Solutions, this is something structural. As you can imagine, in Business Solution, it's something one-offs because as in Business Solutions sometimes you have just one-off products that you are selling.

It's just that. Nothing that we are concerning about that.

Thank you, Filipe.

Our next question comes from Henk Slotboom. Henk, please unmute yourself.

You have been allowed to talk, and ask your question.

Thanks for taking my questions. I've got three.

Two are connected, it's basically two and a half questions. Let me put it in those phrases.

You mentioned a shift from Asian volumes to call it domestic or European volumes. With the Chinese so much focused on tariffs, am I right to assume that this will have a positive effect on your margins, the mix is changing towards domestic, that the margins are there higher?

Connected to it, only on the China-Europe lane, let me put it in those phrases, that's the area where Cacesa is active as well, we see more and more competition on that front. We see PostNL announcing new initiatives with Spring, bpost is pretty active there, Austrian Post has recently done an acquisition in Central Europe, which is active in that field.

On top of that, we see companies like JD Express, like J&T Express, Chinese competitors coming in. Is this an area where we should expect margin pressure or tariff pressure as well going forward?

Then the final question is, hey, obviously what's happening in the Middle East is beyond your control, and I understand what you say about procurement and distribution lines and whatever. There is higher fuel costs, but there's also something like inflation.

We're beginning to see, especially in the chemical sector, the first price increases, and they are pretty hefty, eh? BASF announced price increases by 30%.

There's a knock-on effect on detergents, on shampoos, and that sort of things. Before you know it, the consumers are getting cautious again.

We've seen something like that before. I haven't followed CTT long enough to judge what happened during the start of the Ukraine war, but perhaps you can shed some light on it, what your expectations are in terms of consumer sentiment on the Iberian Peninsula.

Those are my questions. Thank you.

Thank you, Henk. Let me start with the geopolitics and implications.

We have a good observation points in e-commerce in general. I think it's a very early days for us to evaluate what's about going to be the influence, but we can only draw expectations from, well, I would say history.

Typically, high inflation produces in somehow retraction on consumer behavior. That's why one of our assumptions is that the war is not going to be very prolonged.

Regarding the impact on pricing and the competition of Chinese players, I will ask Guy to help you.

Let's see. The two and a half questions, I try to separate them.

On customs, let's say we see some competition, of course, because namely the customers are very price-sensitive. We work at European level, not in specific airports as you mentioned, with the examples that you said.

As such, that enable us to continue to grow and to capture the volumes that swing between the local attractiveness of each customs authority. More than that, we see with de minimis the type of clearance evolving for more complex clearance in terms of process, and that will entail in our view upside risks in pricing and in margins, as the direct-to-consumer things will be diminishing.

Poland was in fact in the first quarter, Eastern European in first quarter are the fastest-growing geographies in terms of customs clearance, and this has to do with all the dynamics around handling fees and others throughout Europe. In terms of local last-mile Chinese operations, that will entail some more competition.

We think that we have a differentiating offer, we don't provide the same service as these guys do, although still not much present in the markets we operate. They are mainly focused still in France and Italy.

That may entail more price competition, but we always said since our Capital Markets Day that we see in the next cycle more competition on price, because not only more last-milers, but also less abundant growth. We see our best-in-class margin as a key advantage going forward, as we can lean in on that margin if we need to keep being competitive and keep growing market share.

As we stress, we aim to be leaders in Iberia, and we are on the clear path to do that, moreover now with completion of the JV where our offering will be largely extended, and that complete offering will enable us to win in Iberia. If needs be, we can always resort to having a competitive offering with the kind of services these guys provide that are actually very different from our standard.

If allow me, Guy, the feedback it's more qualitative than quantitative. That's the feedback I have from the customers.

We had conversations in the last weeks that we call post-mortem of the peak season, it's typical with these big clients from the Chinese. The quality that we are bringing to our services, that's enough to compete, but we have space always to retain these volumes, like Guy was saying.

On inflation, let's see, still early days to see how prevalent will be inflation. Obviously, that give us more pricing power within our customers.

We have been in e-commerce resilient during inflation cycles, where we see more risks is on the labor side of mail. Of course, it's difficult to translate labor inflation, because normally it's very difficult to delay the inflation impacts on labor, and obviously on mail, we don't have enough pricing power to translate fully to price on the competitive side of the mail, the labor inflation, although mail is less and less meaningful in our profitability.

Normally, are those areas impacted by inflation.

Quick follow-up, if I may. In relation to fuel prices, is there a fuel surcharge provision included in the contracts you have with the big e-commerce firms?

We have fuel surcharge in almost 60% of our revenues, not in all contracts, but we have a significant hedging in terms of revenues.

That's clear. Thank you very much.

Thank you, Henk, again. If you'd like to take questions, you should click the button to raise your hand or press star nine to raise your hand.

Our next question comes from Mathias Paladino. Mathias, you've been enabled to talk.

Please unmute yourself and ask your question.

Good morning, everyone. Thank you for taking my question.

I have only one question. I'd like to come back to public debt placements.

They recovered strongly in 2025, mainly because of certificates still offer an attractive spread over deposit rates. If the current geopolitical context pushes Euribor above the certificate cap, I think that spread will disappear in some ways.

How meaningful is that risk, and do you have any sense on whether the Treasury will adjust the terms of the current series? Thank you.

Thank you. We actually see Euribor going up as also positive impact on public debt placements, as you might recall, the remuneration of that product is completely Euribor-linked with a cap.

As long as we keep being below the cap, normally this product is more interesting than the bank competing in offerings on deposits, and as such, normally this pushes placements up. We are working with a placements for this year between €4.5 billion and €5 billion, that is slightly below the last year numbers, but above the average on the last years in terms of placements.

Thank you, Mathias. Our last question will come from António Seladas.

António, you have been enabled to talk. Please unmute yourself and ask your question.

Yes, hello.

Okay. Thanks.

Thank you, João, for the last five or six years, and I wish you all the best. My question is just a clarification on your first-quarter guidance.

You basically mentioned that organically it will come down. Does it means that if I compare last year figures with first-quarter figures that you are going to release in one or two months, it should increase?

Organically it will come down because all the arguments that you mentioned. Nevertheless, in absolute terms, it should increase.

Can you confirm, please?

António, what we have to say on that topic, it's what is written on the slide, we won't clarify or give any additional detail.

Organically, without Cacesa, this year it will come down. Is that it?

Is what you say. Nevertheless, Cacesa should have €1 million to €3 million on the quarter.

Is that right?

António, this is Nuno. We have given you the numbers of Cacesa in the last year, you have that impact, more or less around €4 million for the four months that we have not consolidated in the last year.

The message that we can give you at this point is that organically, the recurring EBIT will come down, but we are not providing any comments beyond that at this point.

Okay. Thank you very much.

Thank you, António. Thank you all.

As there are no further questions at this time, I'll hand the call back over to Mr. João Bento for any additional or closing remarks.

Thank you, Nuno. I thought I should have a bit of a more extended final remark.

When I woke up this morning, I counted them, and this is my 28th results presentation webcast and the 7th yearly results one. António, it's 7 years now.

A good part of this journey was made hands on hands with our analysts, of course. Some were already here when I came in, some others started covering mean while, some others returned to us, possibly because they were happier.

We've had a desertion of someone that preferred to cover smaller peers instead of us that are now much smaller than us.

To all of you, we feel thankful. I'm sure my colleagues are with me for helping us while guiding the market and your clients, and somehow also disciplining us and helping us delivering more and more.

Thank you for that. The last slide that we are seeing here summarized my main feeling now that I'm about to hand over to Guy and to João.

I think that we've delivered. I feel happy for that, and thank you for that as well.

Thank you, João. On behalf of CTT, I would like to thank you all for your participation.

This earnings call is now concluded. Thank you very much.