Good afternoon, ladies and gentlemen. I am Cristian Nicoletti, CFO of FILA Group.

Let's start with a brief overview of our financial performance for the first half of 2026. First, I would like to highlight that H1 2026 confirms the indication provided during the first quarter results.

Specifically, a sustained growth in operational performance, particularly in Q2, following the consolidation of Seven Group and the progressive shift of the business seasonality towards the center quarter of the year. On organic basis, excluding negative FX impact, group EBITDA increased, delivering very satisfactory profitability levels.

It is worth noting that the net impact of tariff was only 2.7 million at EBITDA level in the first half of the year, while considering that 2025-2026 period, the economic and financial impact of the tariff will be zero, completely neutral. Moreover, FILA Group also increased its financial flexibility following the successful completion of the debt refinancing and the ABB for its 7% stake in DOMS, without compromising the company governance structure.

We are also pleased with our free cash flow to equity performance. Excluding the cash absorption for the Seven Group of around negative 17 million, free cash flow to equity stood at negative 43 million, showing an improvement of 27 million compared to H1 2025.

Regarding the net bank debt, the decrease at the end of June reflects the strong cash flow generation and the disposal for the stake in DOMS for 73.8 million euro. This more than offset the acquisition of Seven Group, its bank debt, dividends, and buyback.

Finally, today the Board of FILA agreed the distribution of an extraordinary dividend of 0.46 per share euro, which will be approved in September and paid in October. On top that our share-based share buyback program continues with around 468,000 treasury shares purchased to date out of the total 1.3 million shares authorized by shareholders meeting.

Moving on the slide eight, where we looked at core business sales. In H1 2026, core business sales reached 343 million, up 12% on a constant FX basis, and including 44.3 million of Seven Group contribution.

The organic growth was positive in Q2 for 2.1% on a comparable FX, reflecting the shift of the order towards in Q2 in North America and in Europe, the latter as a result of the new commercial strategy. Meanwhile, Central South America were down 11.9% at constant FX, still suffering from the weak economic environment in Mexico, further impacted by competition from illegally imported school products.

Let's now turn the group profitability on slide nine. Adjusted EBITDA coming at 75.9 million, up 20.4%, which includes at 8.6 million positive contribution from Seven Group, recovering from the negative 3.4 recorded in Q1 2025, driven by its Q2 seasonality.

Importantly, excluding Seven Group, H1 2026 adjusted EBITDA grew by plus 2.9% on constant FX basis. EBITDA margin reached 22.1%, expanding from H1 2025 thanks to ongoing operational efficiency and the net tariff impact 2.7 million, which is the results of the tariff refund for 8.2 million and reversal of inventory sold for 5.5 million.

Please to turn the slide 11 for adjusted net profit. Similarly, adjusted net profit including Seven Group rose to 37.9 million, improving from 22 22.5 million in H1 2025, driven by better operating performance and lower net financial expenses.

Many thanks to the positive FX impacts, 30.5 13.5 million between H1 2026 and H1 2025. Reported net group profit increased to 59.3 million versus 9 million H1 2025, including the capital gain on disposal of 7% stake in DOMS.

On slide 12, we detail our free cash flow generation. Free cash flow to equity stood at negative 60.3 million, consistent with the standard H1 seasonality and improving versus the negative 70 million H1 2025.

It is worth noting that excluding the nearly 17 million negative contribution from Seven Group, free cash flow to equity improved year on year by around 27 million, reaffirming the strong cash generation profile of FILA core operations. Let's move to slide 13.

As of June 2026, the net debt stood at 209 million, a decrease of 35 million compared to June 2025. This change was primarily by driven by the positive cash flow generation of the period and the disposal of the stake in DOMS.

In conclusion, turning to our full year outlook, we confirm our full year guidance. FILA expect double-digit growth in both revenue and adjusted EBITDA, alongside positive organic growth.

Free cash flow to equity is projected between 40 and 50 million, with another target dividend payout ratio 20% to 40 40% under normal business condition. Thank you for your time and attention.

We are now happy to take your questions.

Hi, good afternoon everybody. Two questions from my side.

The first one is on current trading. The second quarter showed positive organic growth both in North America and in Europe.

I was wondering if you can share any data on the first part of the third quarter, whether these supportive underlying trends are continuing as we approach the back-to-school campaign. Second question is on Seven, just a clarification.

You mentioned, Cristian, 7 million the 17 million euros negative impact from Seven. Is it free cash flow or networking capital absorption?

A final question is on full-year outlook for free cash flow, just wondering which are the underlying assumptions on capex and networking capital backing your guidance on free cash flow.

Thank you, Isacco. Massimo Candela.

Concerning the first question, in this call we are happy to have the presence of the CEO of North America. I will answer for Europe and rest of the world, he will answer for North America for the third quarter.

Concerning the two remaining questions, Cristian can answer to you. Steve, would you like to start talking about North America, please?

Certainly. Again, this is Steven Boyea, the CEO of Dixon Ticonderoga.

We had a very good shipping month in July comparing to prior year. Both U.S.

and Canada shipped double-digit increases in gross sales. Basically, we see customer sell-through through the third week of July, which is still not the peak of back-to-school shipping.

The last week of July and the first three weeks of August are the key weeks. Overall, the industry is starting off a little slow on sell-through, but our performance is better than the industry.

For example, one of our largest retail customers, the sell-through of our product through the first three weeks of July are up 5%, and they're very happy with that. A really good start to the third quarter.

Yes, thank you. Concerning Europe, Europe is a little bit behind United States, as our back-to-school start generally at the end of August, a little bit premature.

I think that the improvement trend that we have seen in the second quarter should be confirmed. Of course, we were a bit concerned due to the situation in Ormuz, but the second quarter is showing very good resilience, very good cost control that we have been able to apply.

I do expect a third quarter in line with expectation, thus positive. Cristian, can you answer the other two questions, please?

Yes, of course. Thanks, Isacco, for your questions.

Related the absorption of the Seven Group, the 17 million is related to free cash flow to equity. Consequently, you could take the 60 million that is in absorption in H1 2026, we'll have an improvement of these amounts.

Related the guidance, we confirm our guidance of free cash flow to equity at the end of the year between 40 and 50 million, but of course, at the moment, we are reasonable to be in upper guidance at the moments for the information at the moment available. Related the capex, we confirm the initial evaluation of 20 million for the full year 2026, and the change in networking capital in a general absorption for 10 million, as discussed in the previous call.

Fantastic. Many thanks to everybody for the answers.

Hello everybody, and thank you for taking my questions. The first one, actually, it's on capital allocation.

You had an extra dividend for about 23 million, but I would say you had a very positive cash in coming from DOMS at 74 million. Just to understand what is your view about the delta in term of capital allocation priority.

This is my first, then I make the others, but I will start with this.

Ciao. Ciao, Ale.

Thanks. In terms of capital allocation, we are living in a very unstable moment.

It will be interesting to see what will happen at macroeconomic situation. As of now, we want to deleverage FILA Group as much as possible because we have the perception that in two, three years, some transformational project can become reality.

In short term, we have two main priorities: to reduce as much as possible debts in United States, apart that the CEO is doing an extremely good job. Interest rate are pretty high, and even more in Mexico.

The cost of debt is extremely high. They have a very high peak season, we want to reduce as much as possible the cost of debt that we have in that area.

Very clear. My second question is instead about Seven.

Of course, for us is new the seasonality of the business, we need to better understand the trends, in particular in term of EBITDA. If so, looking at the second quarter so, for the year, for instance, I was just wondering in the past was around 40 million, 14 million of EBITDA for the year.

Looking at this second quarter, we are ahead of these targets or we are in line given the seasonality of the company?

Thanks, Ale. I think we made a mistake not being very clear starting from the first quarter because the seasonality of Seven is definitely different because they go directly to retailers, and I remember you that this will be something that characterize also FILA in the future, both in Italy and in Mexico.

Our seasonality is going to go more towards the second quarter. The performance of Seven as of now is slightly better than June '25, but it's very much important to see the sell-through.

I explained 5 minutes ago, our back-to-school is starting the last week of August. As of now, yes, we have some very first positive signs from customers that are telling us they are reordering because they have a nice sell-through, but frankly speaking, this cannot be considered an average.

It's just a first sign. We are positive to say that Seven, despite the difficult market in Italy, is going to have a pretty good year in '26 comparable to '25.

Very very helpful. Back to the previous questions about the trend in third quarter.

Probably I missed your view about Mexico, the Central-South America, because second quarter was very tough, minus 19 million with a very relevant loss in term of EBITDA, in term of year on year. Second half is easier comparison because the crisis started, if I am not wrong, in the second half of last year.

Just to understand which is the current dynamics that you are seeing in the market. Finally, just to recap on the U.S., it is possible to see U.S.

to be mid-high single digit in the third quarter, or I understood wrongly the messages? Thank you.

Steve, can you please answer the question about USA?

Yes. The third quarter, I think July will be stronger than our August, I think that is going to normalize between those two months.

I would say mid-single-digit increase in revenue over last year is definitely attainable.

Thank you.

For Mexico, the answer is a little bit more elaborate. I would like to remember you that last year this period, we have shut down Chinese operation for the reason that we have shared many times.

As every extraordinary project, specially when you touch production, there are some unforeseeable problem, and we have absolutely fallen in this situation. There has been a strong delay in implementing all the equipment, all the machines in our plant in Mexico for different reasons.

This has generated, number one, extra costs; number two, important delays in production that has affected also domestic sales because Mexico should have been forced by us to respect deliveries to Europe, which by the way anyway have been delayed by four, six weeks. Mexico is going to make up some difference in domestic market because now they have the production in place and they can supply orders they couldn't supply by the second quarter.

We have had also big problems of learning curve. This was more predictable because in the past when we moved to China, we had exactly the same experience: so very high level of waste, quality problems.

The learning curve is going to become flat in a near future, I would say for next back-to-school. This year, we have paid consequences.

If you put together delay in the deliveries in domestic market, delay in shipping to Europe, very high level of defective product, learning curve still very steep, difficult market due to illegal import, of course, we really hope that Trump will be able to put all the pressure to Mexican government to stop illegal import because they feed this illegal import clearly for economical reason. Mexico is still a difficult country in which we operate, but definitely the worst is behind because the production now is showing important improvement.

Thank you. The last, if I understood correctly, basically the net tariff of the current 2026, if I understood correctly, excluding, of course, reimbursement or previous, is close to zero or zero, I understood correctly?

When we say zero, it means that if you start from the tariff when they have been applied last year, I would say around April '25, and if you consider the reimbursement we have been able to get, the impact will be close to zero. This year, 2026, the positive impact of the reimbursement is around, Cristian, 2.5 million, correct?

€2.7 million.

2.7. This year the positive impact has been 2.7 million.

Oh

okay, just to understand, because the 5.5, if I am correct, is due to tariff applied to inventories linked to 2025, and the reimbursement is due to 2025. If we exclude this, So, the message that you are basically not paying tariffs now, in your current business, or very, very limited?

We are paying an average of 10% or slightly above. Yeah.

Okay.

Ale, confirmed what you said about the value of the tariff in inventory.

Okay. Thank you.

Good evening. Hope you hear well.

I have a couple of questions. The first one is actually on the free cash flow.

It's my understanding that 50 million from the transaction of DOMS is going to go against debt, plus the organic free cash flow generation, which is, as you mentioned, on the higher part. That would be approximately 100 million less of deleverage on a back of the envelope very quickly.

That should be correct, that's the first question. The second question, if I may, should we adjust the EBITDA margin for the reimbursement of the U.S.

tariff? What would be the adjusted margin, or in other words, the gross margin of first half 2026 to be compared with first half of 2025, please?

Just to understand also the impact of these un-efficiencies that you just, Massimo, mentioned that we should expect to recover. Thank you very much.

That's the second question.

Cristian, I think you have all the elements.

Related to the free cash flow to equity, if we go at page 12, the proceed from sales DOMS are excluded our free cash flow to equity. 60 million negative is without sales DOMS, as this maintain the same approach of the liability related to Seven Group, is pure core business.

Okay?

Relating to impact of the tariff, as did in 2025, we are considered ordinary business the tariff. In our EBITDA, we have the impact negative in 2025 for the amounts that we are reversed in inventory and sales.

In 2026, we have only this 20 2.7 million in EBITDA, but are considered ordinary business. As Massimo said, starting 1st July 2027, we are zero impact for other reimbursement, roughly, of course, material, eh?

Okay. Basically is accounted above the EBITDA level for both years, correct?

Thanks, Cristian.

Good afternoon, and thanks for taking my question. Actually, just a clarification on the accounting of the sell of the 7% stake in DOMS.

I was wondering which was, at the end of the day, the let's say, net impact post-tax, the net cash-in post-tax of the disposal. I guess that the 70 70-plus million you mentioned in the cash flow statement is gross of tax.

Also, which is the capital gain linked to the transaction which we should see on the P&L? Thank you.

Niccolò, for your question, the net proceeds are €73.8 million, net proceeds. The capital gain related the investments due to the sales value of DOMS respect to the initial booking is €46 million.

Okay?

The impact of the net income is roughly €33 million, considering that we have 46 million of gain, 13 million of tax between Indian tax and Italian tax, the net is the difference.

Okay. Thank you.

Welcome.

Hello everybody. Just a quick on financial expenses, because basically all in, excluding of course forex, this year we can run around the 13, 14 million if I am not wrong.

Given the sort of restructuring or renegotiation of the debt package, which is a reliable assumption for savings for 2027 in term of financial expenses? Thank you.

Ale, thanks for your question. 2027 or 2026?

2027.

This year probably will be double the first half, just to understand the net savings in year on year in 2027.

Okay. Roughly, let me say that is the normal decalage that we have considered on the beginning of the evaluation because we are confirmed the actual margin and the value of the structure of the interest.

Let me say 2 million, more or less, but is important to understand where the Euribor will arrive at the end of the year, of course. The condition of the interest is absolutely better of the previous one.

Let me say one 1 million, 2 million related like-for-like bank condition.

Okay. Thank you.

thanks, everyone. Thanks for attending this call, and we are going to meet soon at the first opportunity.

Enjoy holidays.

Thanks a lot.

Thank you.