Ladies and gentlemen, good afternoon. I am Cristian Nicoletti, CFO of FILA Group.

The Group CEO, Massimo Candela, and the Group COO, Luca Pelosin, will also participate in today's conference call. Let's start with a brief overview on our financial results for the first quarter of 2026.

I would like to underline that Q1 2026, in line with budget expectation, reflects progressive shift in FILA business seasonality to middle quarters of the year, also considering the consolidation of SEVEN Group, which has low revenues seasonality and a net negative EBITDA contribution in Q1. Reported results also reflect the weakness of the euro versus the USA dollar.

On organic basis, excluding the negative tariff impacts, the group EBITDA increased, delivering a very satisfactory level of profitability. We are pleased with the free cash flow to equity performance, which excluding the SEVEN Group cash absorption, stood at -40.9 million, improving versus the 55.5 million in Q1 2025.

Regarding the net bank debt, the increase at the end of March reflects the full consolidation of SEVEN Group, its debt, and dividend distributed over the last 12 months. Our leverage remains comfortable.

I would now draw your attention to slide number 8, where we illustrate the core business sales. In Q1 2026, core business sales, excluding SEVEN Group, were 120 million, down 7% on comparable FX basis.

This primarily reflects of shift of order in Q2 in North America and Europe, the latter influenced by our new commercial strategy. Central and South America were down 1.7% on comparable FX basis, showing stabilization after a weak H2 2025.

Let's move to group profitability on slide 9. Adjusted EBITDA at 16.7 million includes 3.4 million of negative contribution for SEVEN Group, in line with Q1 2025, which is characterized by low revenues seasonality in Q1.

It's important to underline that adjusted EBITDA, excluding SEVEN Group in Q1 2026, increased by 3.1% on comparable FX and tariff basis. Margin stood at 16.8%, improving from Q1 2025, driven by ongoing operational efficiency and better sales mix.

Please turn to slide 11 on adjusted net profit. In the same way, adjusted net profit, excluding SEVEN Group, stood at 7.4 million, improving from 0.9 million in Q1 2025, driven by lower net financial expenses, which mainly reflect a positive financial impact from FX.

Let me remind you that the net profit does not include the contribution for DOMS, in line Q1 2025. This will be made available once DOMS will have reported Q1 2026 results.

On slide 12, we highlight the development of free cash flow. Free cash flow to equity was equal to -56.7 million, in line with Q1 2025, as a result of seasonality of the first quarter.

It is worth mentioning that excluding the almost -8 million contribution for SEVEN, free cash flow to equity improved versus previous year, reaffirming FILA cash generation capacity. Let's move on slide 13.

At March 2026, the net financial position increased to 252.9 million, increasing by 76.2 million compared to end March 2025 as a result of acquisition of SEVEN Group: -54.9 million of total consideration, SEVEN Group net bank -11.2 million, and dividend distributed for 14.2 million. In conclusion, the outlook for full-year end, we confirmed our guidance provided.

FILA expect double-digit growth in both revenue and adjusted EBITDA, including the contribution for SEVEN, alongside positive organic growth. Free cash flow to equity is expected between 40 and 50 million, with a dividend payout ratio of 20%-40% in ordinary course.

Thank you all for your attention. We are now ready to answer your questions.

Hi, good afternoon. Three questions from my side.

The first one is on the underlying trends in Europe and the United States. Overall in terms of demand on the market, what you're seeing beyond the shift in the commercial strategy that is impacting seasonality of your business.

Second question is on current trading, if you can comment a bit more on April and beginning of May performance. In the press release, you mention orders year-to-date recovering.

Just if you can give a bit more color on that. Last question is on cost inflation, what you're seeing since the Gulf conflict and which are the levers you can activate to compensate growing pressure on costs.

Thanks, Isacco. Massimo Candela speaking.

Concerning the first question, as we announced in the previous call, we do see 2026 as a better year compared to 2025, and as of now, we confirm. The seasonality is going to impact even more our sales in the future because we have acquired SEVEN.

SEVEN, 96% of the turnover goes to retailers, and FILA creating synergies on this is going to have an overlap to seasonality. Of course, this year the trend is not yet completely reached, but we will see full effect in 2027.

In Europe, the market is stable, except in Italy that is showing a very weak trend in terms of sales and consumption. I think was affected by the rate of birth.

This does not mean that we have a negative view on the Italian market because with the synergies with SEVEN, for the moment, are giving us a lot of satisfaction, in light even better than what we expected when we finalized the acquisition. I don't recall exactly the second question.

I think you referred a little bit to the sales of the second quarter. I can confirm that April is showing a complete recovery of the delay we have accumulated in the first quarter and is anticipating a very good second quarter, in line with our outlook for the year.

For the problem related to Hormuz, yes, we are experiencing some cost inflation, but we have decided for the moment to keep prices stable. We are enjoying some improvement in our profitability due to reorganization of the last 12, 18 months.

We have launched a lot of new product, very well received in the market, we think in this moment we need to show resilience and I would say kind of aggressive commercial strategy. This for the moment should not have an impact on our outlook.

Of course, if the Hormuz crisis will continue, in August, September, we will have to analyze better the consequences. For the moment, we have decided to keep our commercial strategy stable.

Great. Thanks.

Hello, everybody, and thank you for taking my questions. The first one, actually, it's on the North America.

I don't know you already discussed about this, but I would like to better understand your view on the current budget school. Last year we saw due to Trump budget cuts, I would like to understand if it's moving something in the positive way.

My second question is about Mexico. First quarter, we saw stabilization, basically asking you if you expect to see, I would say, a recovery on top line to be back on track to previous levels that were pretty pretty good.

Finally, just to better understand, you saw that the Italian market is sluggish, but you see a better outlook due to your own initiatives. Just to understand, is something more on 2027 or you expect maybe something in the third quarter this year that is still seasonally important?

Thank you. Ciao,

Ale. Thanks.

Concerning United States and the federal budget, we have to be more precise. In terms of federal budget, there has not been an improvement for 2026, but at the local state level, they are fulfilling the difference.

The problem is that, as we are referring to 50 states, we need to analyze state by state. I would say, as a general comment, the situation is improving, and this is shown by our top-line sales that are looking positive at least until August.

Then of course, we need to understand what will happen with inflation and Hormuz crisis, but as of now, we are definitely matching our best expectation for 2026. For Mexico, more or less the same comment, the situation is going back to normal.

Also in Mexico, we are applying the same strategy that we are applying in southern Europe, we are going down to retailers in cooperation with some top wholesalers. We are going to expect a good second quarter, thanks to the level of order we can see today.

In Italy, the full effect of our strategy will be seen in 2027. Unfortunately, we finalized the acquisition of SEVEN at the end of January, so as of now, we are just smelling a little bit the synergies.

The market is reacting pretty well. We have already announced our strategy.

We see already positive impact, but the full impact, positive in terms of margin and top line, we are going to see in 2027.

Okay. Thank you.

Hi, everyone. Thank you for taking my questions.

I have two. First on SEVEN and DOMS, could you give us a bit more color on the progress of the partnership and on the medium-term opportunities for cross-selling or distribution of SEVEN products through the DOMS platform in India?

Maybe second one on valuation, considering the current mark-to-market value of the DOMS stake relatively to FILA's market capitalization, do you have any reflections on the current conglomerate discount embedded in the stock? Thank you.

In terms of the partnership, I have a very positive feeling on the just-born SEVEN-DOMS JV. There is a lot of enthusiasm coming from the CEO of SEVEN and the CEO of Kido, which is the DOMS-controlled company for backpacks.

We are already anticipating some new product already in 2027, we are trying to run as quick as possible, and this will be interesting to understand the impact on DOMS. For what DOMS is concerned, I would say the partnership is not at all related to the amount of participation, but they are very much dependent on our know-how, on our let's say know-how of distribution worldwide, innovation of new products, innovation in quality, in design.

We would rather consider the value of the participation strategic, but in line of our financial stability, and in case in the future FILA will need to dispose of some of the shares in order to maybe make some M&A strategy, let's say that we will be free to take our own decision without having any impact on DOMS relationship for the future.

Thank you.

Hello? Hello?

Hello?

Yes.

Ah. Ciao.

Ciao, Massimo. Good afternoon.

Ciao, Niccolò.

I have a question. Maybe I missed it because I connected just 5 minutes ago.

The question is about the performance in Europe. I understand the change in strategy, but of the -10%, let's say, before SEVEN consolidation, how much of the performance was linked to what you say in the press release, which is basically some weakness in the market, and how much is linked on the other hand to your strategy to go direct to retailers and then having some delays?

How much of this turnover lost, which is about 8 million, is going to be recovered in Q2 or Q3?

Thanks, Niccolò. As of now, we think that in Q2 we are going to recover everything because 100% of the delay is related to our strategy and a bit some important customer in Central Europe that has postponed order to April, to April and May for their own decision.

Of course, we need to understand so from one side, the message is positive because you are going to see in the second quarter a very nice recovery, already in April. I don't know if Cristian already gave you the figures, but in consolidated numbers, I know we went from -7% at the end of March to +8% at the end of April, a dramatic change.

Of course, the impact of Hormuz in case if the situation will be solved, we have to analyze more in September, when the school will open and the sell-out has to be measured carefully. As of now, we do expect the customer trust a lot on us.

We see a very nice trend, very well received of our new products. We do expect a very good second quarter.

Massimo, the 8% of April you mentioned is just for April or is accumulated?

No, no. Year-on-year accumulated, this give you the magnitude of the improvement starting in the second quarter.

Including SEVEN or not?

Including SEVEN.

Okay.

Cristian, can you please confirm? I don't like to make mistakes.

Of course, Massimo. I confirming that April year-to-date 2026, the revenues including Seven and FX comparable were up 8% versus the same period of 2025.

Thank you.

Thank you.

Yes, hi. A very quick follow-up on SEVEN seasonality.

We're not yet familiar with this. Should we expect EBITDA and free cash flow generation of SEVEN to be even more skewed to second and third quarter in particular than the rest of the group?

Should we expect that, roughly speaking, €14 million EBITDA we have as a base for SEVEN to basically come exclusively in second and third quarter, or is there a tail also in the final quarter of the year to keep in mind?

Yes, Isacco, you are right. Maybe we was not clear at the time of the acquisition.

SEVEN makes 96% of their turnover with retailers, mass, food, drugs, really their seasonality is fully concentrated in second and third quarter, with very small activity in fourth quarter and in the first quarter of the year, even more with an even higher peak than FILA Group, for the simple reasons that we sell consumable products, we have a kind of regular purchase of regular needs of our product, while they sell backpacks and trays for pencils and fiber pen. Generally speaking, the consumer buy once per year, and really the purchases are concentrated during the back to school, the seasonality is even higher than our.

Thanks, Massimo.

Hello. Sorry for this last-mile question.

Just maybe I didn't understand correctly, in the first quarter you had organic performance excluding Forex, excluding SEVEN, that was a -7%. Including April, year-to-date, because a +8% is of course including SEVEN.

I would like just to match apple with apple, -7% organic, how much is with the performance of April? Thank you.

Cristian, can you please explain better the top line EBITDA? Thank you.

Of course, Alessandro, thanks for your question. Of course, Alessandro, speaking about revenue, no?

The up 8% 8% is related to -2.4% on first quarter 2026. Relating the results excluding SEVEN on FX comparable were flat year-to-date, showing a full recovery of the first quarter, considering that the first quarter we are negative for 7%.

Very clear. Thank you.

Welcome.

I thank everyone for attending this call, and I think we are going to meet soon. Thank you.

Thank you, everyone.

Bye.