Thank you, Letizia, and welcome again to EGLA first nine months 2025 results presentation. Together with me, we have the Group CEO, Marco Arduini; the Deputy CEO, Isidoro Guardalà; and the Group CFO, Matteo Perna, who will illustrate the presentation.

Please note that, as usual, the supporting deck and the press release are available online on the EGLA's website at the Investor Relations section. I now hand over to Marco.

Please, Marco, over to you.

Welcome to everyone, and thank you for the interest in EGLA results for the nine months 2025. The results of the first nine months are impacted by a slowdown in Q3 that had some major causes, especially coming from North America, where the condition in USMCA that were created during the last months have slowed down the electrical market in automotive.

Overall, the condition in Europe remains good for the mobility, but weak for the economical situation that is impacting more the industrial business. On the contrary, the Asian country continue, and market continue to grow.

Our total revenues for the first nine months end up with €614 million turnover. We are below the nine months of 2024, 5.4%.

In term of margin, we are at €69.8 million EBITDA adjusted, that is below 14.9% compared to the first nine months in 2024. Entering in the details.

As I mentioned, the revenues slowed down in USMCA because, during the last months, were introduced the new tariff that were hitting the components made with steel that was not produced in USA. This kind of new tariff impacted as well the so-called USMCA production and our plant in Mexico.

In addition to this, the decision to cancel the tax credit on BEV created a disruption as well in the market, and this were impacting the order that we receive from our customer. On the other side, the European market in term of electrification is growing.

Our revenue, compared to last year, are lower in view of the double-digit, in view of the different mix. We have as well more products that are in plug-in hybrid and in hybrid, and as well in view of the competition that is coming from Asian competitor.

In addition, in China, the revenue are progressing and increasing in view of the market that is growing double-digit and is becoming more and more the most important market in the electrical vehicle in the world. If we move to industrial infrastructure, the revenues slightly grow compared to the first nine months 2024, thanks to the Asia growth that is for sure led by India.

This was counterbalancing the weak situation that we saw in the first nine months in US and as well a fragile situation in Europe. Overall, this let's say overall situation of tariff and as well uncertainty that and as well competition increasing, especially in Europe, impacted our margin in both segment, also in Q3.

We have a lower and worse operating scale in the Western region than last year. If we move to EV order book and pipeline, order book remains solid, but in view of the big shift that we saw in North America in electrification, the order book was reduced merely for this reason, while the discussions for new projects in China and in Europe are still meaningful and relevant.

The pipeline in fact remains stable at €2.5 billion. It is important to say that, in view of the whole situation, we have, let's say, fostered our program in order really to improve our performance and efficiency in all our operation in order as well to make an upgrade of our efficiency and as well the ability to deliver cash flow.

We have progressed our work in the different program that we have launched in May this year, with the pilot in Eurotranciatura Italy, and we have as well launched the pilot in Mexico. We have a detailed program and plan that we are as well executing, that is aiming to reduce our cost more than €10 million per year.

Looking then to the whole situation and as well considering the impact and the effects, we have as well updated our 2025 revenues, and we target now -10% versus 2024. With regards to the EBITDA, we have as well updated this forecast, and we aim to target between 11% and 12%.

With regards to the operating free cash flow, we confirm the positive results at the end of the year, including as well CapEx for €70 million. We have as well updated the midterm guidance, and we will see this at the end of the presentation.

I now leave to Matteo in order to enter more in the details of the financial results.

Thank you very much, Marco. Starting from the left-hand side, revenues.

As we said, the decrease in the nine-month totaling was 5.4%, of which you can see that, for the e-mobility business, the decrease was in the range of 9%, consistent with what Marco was saying, especially due to the evolution of the third-quarter business in North America, whilst on the industrial business, we are posting an increase in the range of 0.6%. Worth to be remembered and highlighted that, the result as of the end of September 2025 is as well including the consolidation of our Indian operation, which is accounting for approximately €38 million.

Moving on EBITDA adjusted, we are now we are now in the range of €69.8 million, implying a 11.4% margin compared to the revenues. You see the decrease in the EBITDA adjusted.

It's it's impacted both segments. Worth to be mentioned that in the quarter, in this quarter, we have posted an EBITDA adjusted in the range of €25 million, which is implying approximately 13.5% EBITDA margin in the quarter, that it's as well, let's say, good result compared to what we have posted both in Q1 and Q2.

On EBIT side, due to the reduction of EBITDA, and as well due to the €10 million increase in D&A compared to 2024, you see that EBIT it's in the range of €23.9 million, and this is implying an EBIT reported margin of 3.9%. CapEx, CapEx are have been reduced consistently to to our expectation.

We are now in the range of €54 million. I have to say that 80% of the CapEx that we posted is for the benefit of the e-mobility segment.

We can move to the next slide, please. Additional information in terms of breakdown of our top line.

You see that in terms of segment contribution, now it's e-mobility, it's representing approximately 62% compared to 64% in 2024. EMEA is still the largest region, representing 51% over the total amount of business that has been generated by the company.

Worth to be mentioned the growth of Asia that, due to the positive evolution of our e-mobility business in China, which is posting an increase in the range of 72% compared to last year, and as well due to the consolidation of Kumar, Asia, it's now representing for 15% over the total amount of business. USMCA, it's now approximately 1/3.

If you move to the next slide, please. On EBITDA adjusted, as we said, the reduction it's in the range of 15% compared to 2024.

It's worth to be mentioned that, out of the €24.3 million for the industrial segment, this is including €0.7 million due to the so-called New Markets Tax Credit that we get in our US company, Eurotranciatura USA, whilst, in 2024, the amount accounted was €2.7 million. Then the amount of EBITDA adjusted that we have accounted in the e-mobility segment, it's in the range of €45.5 million, which is implying a reduction in the range of 16% compared to 2024.

EBIT, as we said, consistently with the evolution of EBITDA, and as well consistently with the evolution of the €10 million increase in D&A, now we stand at €23.9 million, which is implying an EBIT reported margin in the range of 3.9%. Worth to be said that in the comparison versus 2024, we had an impact due to the Forex evolution in the range of €9 million with respect to the top line.

In terms of EBITDA, the comparison versus 2024, it's negative by €1.2 million. Again, this is the so-called Forex effect.

If you move to the next slide. In terms of net working capital, we are €297 million.

This is implying a result which is worse compared to our target of approximately €35 million, and this is 100% coming from, again, the headwind, the negative headwind in North America and impacting then our operation in Mexico. Due to the the supply chain in Mexico, we have approximately lead time in the range of 90 days for the raw material which is coming from the Far East, and therefore, the results as of the end of September, it's including an excess in stock of approximately €35 million that will be reabsorbed by year-end.

Worth to be said that as well approximately €5 million in terms of receivables were overdue as of the end of September due to the certain problems expected suffered by certain European OEMs due to cyber attack. Again, this is important to be said.

As well, and I would say, luckily, such overdue has been solved in in October. Moving to the next slide, please.

You see the evolution of the results, plus the increase in net working capital, had an impact as well in terms of net debt. Now the net debt as of the end of September was slightly below €300 million.

This is implying a 2.9 times net leverage on the basis of the last 12-month EBITDA adjusted. Worth as well to be highlighted that this is including €20 million related to the buy-out of the Chinese minorities, which took place in March this year, and as well the approximately €8 million dividend distribution, which was performed by the company in May.

I'll leave the floor to to Isidoro on with respect to to the following page, which is a highlight on the Operational Excellence program that we have launched worldwide.

Thank you, Matteo. These four pillars of our activities are pillars connected to a method of continuous improvement of the results.

Of course, this remain in the our first target daily, and but we will change and improve each of that with new idea and new application. About the Operational Excellence, we are working to improve, of course, the margin in the production and decrease the scrap, but also is very important the increasing of the OEE.

We are targeting this kind of result, and we are achieving that. This can give to the companies the opportunity to minimize the investment in new capacity, as well utilizing all the investments already done.

What's about the supplier optimization? No news.

About the supply chain logistic transformation, we are targeting also to start new activities in the management of the raw material that are coming from Far East, using technical and commercial contact with our supplier, yes. About the cross-functional governance, I want to remark that we are starting to improve a new system for the management of the customer demand to fulfill a better forecasting and activating also advanced system with the AI system that already we are testing in the companies.

Please.

Thank you, Isidoro. Moving to the next slide, on the basis of what we introduced before with respect to the evolution of our underlying markets, we have updated consistently both short-term guidance and midterm guidance.

With respect to the short-term guidance, focus on full year 2025 results, we have updated our expectation in terms of revenue evolution, which were considering an increase of 5% in the latest set of guidance that we released on August the 4th, now considering a decrease in the range of 10% compared to 2024. We are now envisaging EBITDA margin to be in the range between 11% and 12%, and then we confirm both CapEx in the range of €70 million and a positive operating free cash flow.

Going forward with the so-called midterm guidance, we have updated our expectation in terms of revenues CAGR, which are now in the range between 10% and 12%. We are confirming, in the back of the important cost-saving initiatives plan and as well the performance excellence plan that we have started both in Italy and in Mexico and then will be rolled out as well in China next year, we do confirm the 13% average EBITDA margin that we are now being presented to you.

It's as well confirmed the CapEx intensity, despite expected, say, lower increase of the revenues compared to the last set of guidance that we discussed on August the 4th. As well in terms of return on capital employed, we are now considering a range between 13% and 15%, then to be achieved in 2028.

At this point, we are ready to take your questions.

Thank you very much, Alberto. It is worth to be said that, of course, the company it's partially involved in the discussion which are happening between the shareholders.

We can provide you an answer with what it's, let's say, under control by the company. The company has been now engaged in the discussion for the FDI request that is having an impact both in Italy, golden power, and as well in India, PM3, and I have to say that so far all of the interaction that the company has with authorities have been always constructive.

With respect to the antitrust, I have to say that, again, on the basis of what the company has been involved, we know that out of five countries impacted by the antitrust request, four have already provided green light to our request.

I think it's important only to add that, of course, we are in a EGLA session, and the topics that are related to the shareholders cannot be commented by us. This is with regards to the second part of your question.

Thanks.

Thank you, Alberto. The next question comes from Emanuele Negri.

Please, Emanuele, the floor to you. Good afternoon, everybody.

Can you hear me?

Yes, sir. Good afternoon.

Thanks for the presentation and for the Q&A. I have a couple of questions.

The first one is on your guidance. If I do my math on margins, it seems that your guidance is not entailing any improvement in the profitability in the fourth quarter of this year compared to the third quarter, which was a trend actually we were used to observe in your company in the last few years.

Could you explain us why shouldn't we expect further improvement in the last quarter in terms of profitability mainly in the let's say, EV auto division? The second one is on your order book you disclosed at the beginning of your presentation.

Could you give us an idea of which were the drivers of the reduction in the order book you had in the third quarter? Thanks.

Thanks, Emanuele. On your request on guidance, worth to be said that we added let's say, an additional buffer of prudence as well in our guidance for both full year and midterm guidance due to the uncertainties that we are now facing, especially in North America.

Having said that, we do expect the last quarter to be in the range of the margin that we have expressed in the third quarter of the year. Again, in the range of above 13%.

On order book, as you can imagine, the vast majority of the difference is driven by the evolution in the North American part of our order book, which was lowered compared to the last data that we discussed and presented on August the 4th by approximately €400 million. Thank you.

Yeah. On the industrial evolution of the business, I have to say that, looking at the different segments that we are covering compared to 2024, there are certain segments which are namely the home business and as well the other industrial application which are posting a growth compared to last year, and as well heat pumps, it's providing us a positive result compared to what we have experienced over the last years.

Worth to be said that as well, in light of the consolidation of the Indian operation, we have as well now a new segment which is making reference to the transformer business, which is totaling approximately €19 million of revenues out of the total amount of revenues that we said before, €38 million we make reference to Kumar. Then the second question, yeah, was on the compensation.

The total amount of compensation that we do expect to achieve by year-end, it's €10 million. We can make reference to the supply chain.

It's not only towards the customers. We have already accounted approximately €5 million of compensation, which is part of the result of at the end of September.

Additional €5 million are now embedded in our estimates by year-end. Very clear.

Grazie.

No, no, you're fine. It's fine, Emanuele.

Slightly more than €50 million, consistently what was as well our original expectation on Kumar. We said 38 point €38.1 million is what we account as of the end of September.

In terms of EBITDA, we are in the range of €3 million. By year-end, we do expect Kumar revenues to be above €50 million, and in terms of EBITDA, we are considering approximately 10% over margin.

Thanks.

Thank you for your interest and your questions. I think the market remain uncertain in view of the geopolitical and as well the tariff items that have been discussed all over the region during the last year.

We see ahead no change in the trend that we are following in term of energy transition that is impacting not only the EV, but as well other markets that are growing and becoming more and more important. In view of that, we have as well updated our future targets and forecast, always aiming to grow the company.

Thank you for your attention, and please refer to us if you have additional question.