Good morning, good afternoon, everyone, and thank you for joining us today to discuss the financial results for the El.En. Group for the first quarter ended in March 31st, 2026.

Enrico Romagnoli will be on the call with me as Nicola anticipated. As we look back at the first 3 months of the year, it is clear that the El.En.

Group continues to navigate a complex global landscape with resilience and an unchanged commitment to our core mission: leverage our technological leadership in both the medical and the industrial laser sectors to drive value for our partners worldwide and, subsequently, for our shareholders. We were pleased with our financial results, and I want to thank our global team of engineers, clinicians, and staff to their dedication to the success of our group.

Turning to our consolidated financial performance for Q1 2026, we achieved total revenues of roughly €145 million, up 3.3% compared to Q1 of the previous year. This performance reflected the excellent performance of the medical sector, which was up 9.3% in revenues, and in fact more than 10% on an organic base, neutralizing the effect of the exit of our Japanese subsidiary With us, overcoming the slowdown in the industrial sector, which was down in sales by 11.4%, mainly due to the cutting segment, which was down by 15.5% in the quarter.

The quarter also displayed an improvement in P&L efficiency based both on marginality on sales and on leverage, leading to €19.8 million in EBIT with an EBIT margin of 13.6%, more than 1 point up on Q1 2025, but also—and this was an excellent achievement due to the weakness seasonality of the first quarter—also up sequentially on the last quarter of 2025 on the EBIT margin performance. As leverage is given by volume and margin on sales depends upon the quality of the sales mix, I would like to provide you with some color on the matter.

Volume increase came from the medical business only, and this contributed to the overall margin for mere mathematical reasons as margin are higher in medical than in industrial. It's roughly 48% in medical versus 38% in industrial.

Within the respective sectors, margins were stable to a high level in medical, but they materially improved in industrial from 34% of Q1 2025 and 28% of Q4 2025 up to 38% in this first quarter. It is important to point out that under the sales margin profile, we had positive contribution by the industrial sector as well.

Margin improvement in the segment is the cornerstone of the path towards a return to the of the segment to a stronger profitability. Sales have been lagging in this quarter in the industrial sector, but under the margin point of view, we are on the right way, and we expect stronger quarters ahead also on the sales volumes side.

Ground to this trend lie in the sales mix under the product and the geography profile for both sectors. In industrial, geography is a prominent margin driver with Europe, the US, and Brazil being the most attractive markets margin-wise.

Q4 2025 had recorded the highest weight of sales in Italy and a negligible sales volume in the US and Brazil, and subsequently showed a very low gross margin in sales. Q1 2026 witnessed a return to a decent sales volume in Europe and in the US, and accordingly a decrease in the total share of sales in Italy.

The effect on margin was evident. The weak sales performance in Brazil was in this quarter the missing piece that didn't allow to convert the material margins improvement into a volume effect sufficient to better cover the expenses from operation.

In industrial, as quarterly sales volume in the cutting segment declined, higher-margin-bearing sales in the marking and laser sources segment increased their weight, therefore increasing the segment margins. Medical maintained its gross margin levels, confirming a sales mix which privileged within aesthetic devices anti-aging treatments versus hair removal, and confirmed the material contribution of the surgical business both for system sales and consumable sales, as the volume of sterile fiber sold in the quarter exceeded once again the 10 million threshold.

Onda PRO is currently the trendiest device in our product range, a system which successfully captures the requirements of the demand in medical aesthetics, especially focusing on skin tightening and skin firming. Our Coolwaves microwave technology enables minimally invasive and extremely effective procedures with effects that are evident, but are also respectful of the appearance of the patient, mild improvements that do not distort the expression.

Patients want to improve their appearance, but are not willing anymore to accept that their efforts are too evident. They want their status to be maintained without being noticed too much.

By the way, on Onda PRO, we are expecting an unprecedented number of imitations being introduced on the market, and we are delivering a notable effort both on the marketing and commercial side and on the legal side to protect the uniqueness of our flagship device. On the innovation side, our key success factor and main competitive weapon, we continue to dedicate significant resources in terms of management, manpower, investments that enable our R&D teams to maintain their excellent productivity level.

Coming up this year, we have new products in aesthetics for pigmented lesions and hair removal, and improved capabilities for our skin tightening devices. In surgery, a new laser in the wavelength range of the blue is due for release within the end of the year, while in urology, a new high-power thulium BPH system is almost ready for its launch.

In the industrial sector, laser cutting systems are improved, especially for the large-size, high-power systems dedicated to steel construction, but also the offer of laser marking is continuously updated with new wavelengths and special emission modes which allow the systems to be more and more innovative and more and more matched to the needs of a diversified set of customers, application segments, and industries. A brief mention of the unprecedented first quarter improvement of the net financial position.

We were up €1.5 million in the quarter, the first quarter that historically is a cash absorber. Enrico will give you the details.

I can now make a comment that CapEx was lower in Q1 '26 than in Q1 '25, as expected to date on a yearly basis as well—excuse me, as expected to date and as expected on a yearly basis as well. We, though, approved during last week a fairly sizable investment for a new building here within the Calenzano plant that will be mainly dedicated to marketing and support areas for welcoming potential customer, both in person and with the most recent technologies for effective remote meetings.

The order of magnitude of the investment is around €5 million. It won't change the outlook of our cash flow statement, but it will probably bring 2026's CapEx closer or equal to the order of magnitude we had in 2025.

I would also like to give you an update on certain possible M&A activities I outlined in other meeting and calls. Quanta System new subsidiary in the US for the medical-surgical business is now operational, and with a seasoned general manager, we are hopeful of being able to rapidly capture the market and the customer base that was previously covered through a distributor.

The launch of the company didn't exactly follow the plan, and also the transition with the former distributor required an initial investment smaller than budgeted. Quanta's management is following closely the development of the company, and we will update you on the performance of this new sub of Quanta System.

Also, in the physiotherapy segment, we are working to an agreement with our US distributor with the goal of a closer cooperation and subsequently an increase in the performance on this market segment, one of the most fruitful among the businesses of ASA, the company based in Vicenza which is dedicated to this market segment. Concerning other M&A activities in the industrial and medical sector, involving on one side the laser cutting business and the distribution of medical laser systems in selected countries on the other one, I have nothing notable to report apart the fact that the group is considering the possibility of evaluating certain options in regard.

During the quarter, the group continued and further consolidated its sustainability activities, which are also included among the performance indicator relevant to management's incentive systems. Implementation of the 2023-2027 Sustainability Plan continued, with overall progress in line with and in some areas exceeding the defined objectives, particularly for initiatives to transition to renewable energy sources.

The plan continues to focus on strategic issues such as fighting climate change, circular economy, promoting a responsible supply chain, developing human capital, and supporting local communities, confirming the group's commitment to a sustainable development model which is fully integrated into business processes. As we anticipated in the press release we issued to disclose the news, we are sharing today more detail with respect of the resignation that our General Manager, Mr.

Paolo Salvadeo, formally submitted for personal reasons on April 30th. Dr.

Salvadeo served in this capacity since 2017, and his impact on our group has been profound. Under his leadership, we have seen El.En.

solidify its position as a global leader, especially the medical sector, the focus of his management activity. I obviously did it already in person, but today on behalf of the Board of Directors, I want to formally thank Paolo for his exceptional professionalism and the significant contribution he has made to our growth under several profile, including the strengthening of our management structure over the last 7 years.

We wish him nothing but the best in his future endeavors. In addition to saying that we are not aware of any reason, if not strictly personal, that led Paolo to the decision to resign, and that we are on excellent terms with him, I want to emphasize certain key points regarding the transition phase we are facing.

In terms of operational continuity, thanks to the robust management structure Dr. Salvadeo helped to put in place, we are fortunate to have an incredibly talented and professional management team.

Because of the strength of this team, we do not expect any impact on our day-to-day efficiency or operational continuity. Concerning our strategic targets, our commitment to our goals remains unchanged.

There are no changes in our targets, short- and mid-term. We are moving forward with the same momentum and focus that we began the year with.

Concerning the next steps, the executive management shared with the Board of Directors its view on the new management structure. We confirm that there are currently no plans to appoint a replacement for the General Manager position.

In fact, also thanks to the contribution made by the General Manager Paolo Salvadeo, the existing management expertise and synergies allow the company to waive a direct replacement at this time. The company can effectively rely on selected executive roles already in place across various business areas, which are complementary to one another.

Ultimate coordination will remain under the responsibility of the executive directors, namely the President and the Managing Director. At this time, I'm giving the floor to Enrico for the comments, the detailed comments on the financials.

Thank you, Andrea. Good morning, everybody.

I'll briefly comment on the first quarter financial results. In the first quarter, the group recorded a 3.3% increase in revenue, reaching €145.6 million compared to the €140.9 million as last year.

The main performance was achieved by the medical sector, when the industrial showing a decrease of around 11%. On a like-for-like basis, the growth in the medical sector revenues would have been even higher, reaching nearly 11% as With us, consolidated until the end of February 2025, contributed approximately for €1.5 million to the medical service revenue in the prior period.

In 2026, the weakness of US dollar in medical, but also in industrial, had a cumulative negative impact on the growth of sales of -1.6% for an amount of €2.3 million. In terms of gross margin, it was €67.2 million, up approximately 7% compared to the €62.9 million on March 2025, with an increase in margin that went from 44.7% to 46.1% in the first quarter 2026.

Although the medical sector achieved the highest sales margin, the improvement in sales margin in the quarter has been registered also to the industrial sector. Despite a reduction in turnover, the sales mix in industrial was more favorable, both geographically, with a lower incidence of the highly competitive Italian market, and in terms of product type, thanks to the reduction in the weight of the laser cutting segment, which bears lower margin than laser sources and the laser marking.

Operation expenses increased in value and in impact on sales, mainly in G&A, plus 6%, including travels and IT costs, and sales and marketing activities, plus 12%, mainly for trade fairs. Staff cost increased due to an increase in headcounts.

On March 2026, the employees were 1,428, when on March 2025, they were 1,383, plus 45 units in Italy and Europe, in medical and in industrial. EBITDA was €23.7 million, up 9% on the €21.7 million of last quarter.

EBIT recorded a positive result, €19.8 million, up 14% compared to the €17.4 million in the prior year. This increase reflects both the improvement in gross margin and the lower impact on sales of depreciation, amortization, and other provision, mainly due to a reduction in bad debt provision.

The main reduction relates to Asclepion and With us, which were consolidated until February 2025. The impact on With us on EBIT 2025 was negative for €0.65 million.

Financial management recorded a gain of €0.8 million compared to a loss of €1.1 million in the previous year. The exchange rate differences went from a loss of approximately €1.5 million recorded in the first quarter 2025 to a profit of €0.6 million recorded in the first quarter 2026.

The contribution of associated companies included in other expenses was negative for €0.7 million, due mainly to With us and Penta Laser Zhejiang, -€0.2 million each. The majority stake of these two companies was sold during 2025.

Elesta, on the other hand, recorded a positive contribution of €95,000. An additional impairment was recognized by El.En.

through a 50% write-down of its stakes in Epica International for €0.4 million. Finally, the pretax was positive for €20 million, up from the €16.3 million on March 2025.

Moving now to the analysis of the cash flow, the net financial position increased by €1.5 million in the quarter from €172.2 million as of December 2025 to €173.7 million on March. The increase in net working capital absorbed €9 million, while around €5 million was absorbed by changes in other assets and liabilities, including the higher advances paid to supplier, lower advances received from customer, and an increase in VAT receivable from the tax authorities.

Cash absorption for working capital was therefore lower than that recorded in the first quarter 2025, and capital expenditure amounted to €4 million, also lower than the investment did in the first quarter 2025. On May 27th, a dividend of €0.25 per share will be paid for a total consideration of €20 million.

For the breakdown by business, the revenue increase across all medical application segments. The aesthetic segment performed strongly, plus 10%, driven by the anti-aging system despite a weakness in the hair removal.

Surgical application remained strong, while physiotherapy system showed a recovery, and medical service revenue, includes sales of services and consumable generated after the installation of system, increase of 8%, and approximately 50% of the medical service revenue relate to sterile optical fiber used in surgical application. Deconsolidation of With us, the Japanese company, resulted in inorganic revenue decline for the service segment, and consequently organic growth in the segment excluding With us from the sales of 2025 was approximately an increase of 16% in the quarter.

In the industrial sector, the quarterly revenue decline by 11% with a decrease affecting system sales across all application segments, except for the restoration. Post-sales and components, on the other hand, performed very positively, increasing both in absolute term and as a share of total revenue.

For the breakdown by area, the European market were the main driver of revenue growth during the quarter across both application segment in both sectors. In the Italian market recorded a decline, while in the rest of the world, performance was positive in the medical sector and down in the industrial sector.

In Italy, the weaker performance in the medical segment was mainly driven by professional aesthetics, for which a recovery is expected following the launch of the new hair removal system. In the industrial sector, an unfavorable environment continues to affect the manufacturing industry and machine tools in particularly, also due to the ongoing uncertainty surrounding tax incentives for investment.

These measures are now being defined on a multi-year basis, which should provide a more stable framework for customers' investment decisions. The decline in industrial sales in the rest of the world is mainly attributable to the weak performance of Cutlite do Brasil, the company distributing our laser cutting systems in Brazil.

The growth in the industrial market in the medical sector remained solid, also in non-European countries, driven in particular by the Far East. Andrea, if you want, you can go ahead with the guidance.

Thank you, Enrico. Looking ahead to the remainder of 2026, we remain cautiously optimistic.

While we are mindful of macroeconomic headwinds and supply chain complexities—

Sì?

No, non si sentiva più. Non si sentiva più?

No.

While we are mindful of macroeconomic headwinds and supply chain complexities, our order book remains healthy and our pipeline is robust. Q1 2026 has provided a solid foundation for the year, and we can therefore confirm the guidance we released a couple of months ago, that we target a consolidated revenue growth of about 5% and that, as we did in Q1 2026, we count on improving our EBIT margin on a yearly basis as well.

Thank you for listening to our prepared comments. I believe that we are ready for your questions now.

Andrea, maybe we can ask Andrea to speak first. He's the first on the list here.

Andrea Bonfà.

Now I've been accessed to the audio. Thank you very much for taking my question, Andrea.

Very quickly, my, let's say, curiosity is on these numbers, the first quarter number. What's the impact on the procurement of RAM, and what's the visibility on that particular aspect or point?

Thank you very much.

There's no impact. We are paying our RAM memories a little bit more, but the effect of the RAM as a single component is not material.

At this point, we see a longer lead time, but we do not see a shortage hitting us. The increase of the cost of memories will increase for sure the cost of our products, but also, given the volumes we are planning to manufacture, in this moment such increases in cost are offset by improved efficiencies under other point of view, and so they have no impact on our gross margin, no material impact at least.

Thank you very much.

Can you hear me? Sì.

Yes.

Good afternoon, everyone. I have three questions.

The first one is on the guidance. If I remember well, on the previous call you indicated an expected growth of 5% and that was broadly based on similar contribution from both divisions.

I was wondering how the first quarter is changing this picture. The 5% now is, I imagine, more skewed towards the medical, but correct me if I'm wrong.

The second question is on the industrial segment. I was wondering whether the weakness in the segment is also driven by any accounting reasons, maybe orders that were not accounted by the end of first quarter and that could be delayed in the second quarter, as happened in the past.

The final question is on Middle East. I was wondering if you could give an update on how the business in the region is progressing, if there are cancellation of orders or postponement or if the stabilization of the situation is causing no particular problems to occur.

Thank you. Okay.

To the first question, the answer is we confirm the guidance and we confirm a contribution from both sectors. The first segment is a very short valuation period for a business like industrial.

I'm answering to your second question, there are no material cutoff changes in this quarter. There are certain slowdowns in deliveries and in concretization of orders, for instance in Brazil, that we expect and we count on being recovered

throughout

the year. We can confirm that we expect growth from both segment at the end of the year.

Concerning the Middle East situation, there's not much of an effect in this quarter. Ironically, the sales we are missing in Middle East are mostly hitting the hair removal segment, which is the lowest margin-bearing sales segment, and so when we are putting up with sales in other areas and other disciplines, we replace the lower-margin-bearing sales with higher margin-bearing, which is accretive to the results.

For the moment, there are certain countries in the area which continue to buy well, like Egypt. Other countries where we are registering a very strong slowdown, like Saudi Arabia and Iraq in particular.

Overall, we are seeing a slowdown, but overall in these months we have always seen that sales traction in other areas of the world is offsetting the slowdown we are seeing in the Middle East area.

Yeah. It's enough.

Okay.

No, no. Scusa.

Thank you.

Thank you. Bye-bye.

Bye-bye.