Thank you. Good afternoon, everybody, and thank you for joining our call today on Indel B Fiscal Year 2025 financial results.

Before starting the presentation, I need to remind you that this presentation may contain certain statements that are neither reported financial results nor other historical information. Any forward-looking statements are based on Indel B current expectations and projections about future events.

By their nature, forward-looking statements are subject to risks and uncertainties and other factors that could cause results to differ materially from those expressed in or implied by the statements, many of which are beyond the ability of Indel B to control or estimate. Consequently, no forward-looking statement can be guaranteed, and actual future results, performance, or achievements may vary materially from those expressed or implied by such forward-looking statements.

Let me now hand over to our CEO, Mr. Luca Bora.

Good afternoon, everyone. I'm here with the CFO, Mirco Manganello, and welcome to the Indel B Fiscal Year 2025 Results Conference Call.

Throughout 2025, we operated in a particularly complex and volatile macroeconomic and geopolitical environment. Against this backdrop, Indel B once again demonstrated resilience, strong execution capabilities, and a clear, disciplined strategic direction.

The results we are presenting today reflect the strength of our business model, the quality of execution across all our operating segments, and the tangible value created by the strategic initiatives implemented during the year. Among these, I would like to highlight the acquisition of full ownership of Indel Marine, which marks an important step in strengthening our positioning in a high-potential segment.

Looking ahead, we remain fully focused on delivering our growth strategy. We will continue to invest in industrial excellence, product innovation, and international expansions, leveraging the group's solid financial position.

This will enable us to capture new growth opportunities, further strengthen our presence in key markets, and continue to consolidate our leadership position in the industry. Let's begin by summarizing the key facts for the period.

On page 3 of the presentation, you find a summary of Indel B results achieved in the fiscal year 2025. In this period, the total revenues amounted to €207.4 million, compared to €203.5 million in 2024, with a 1.9% increase at current exchange rates, plus 2.4% at constant exchange rates.

The sales of products amounted to €201.5 million, compared to €196.6 million in 2024, with a 2.5% increase at current exchange rates, plus 3.1% at constant exchange rates. The EBITDA adjusted amounted to €23.7 million, compared to an EBITDA adjusted of €22.7 million in 2024, with €1 million of increase.

EBIT adjusted amounted to €16 million, compared to an EBIT adjusted of €16.4 million in 2024, with €0.4 million of decrease. Net profit adjusted amounted to €10.2 million, compared to a net profit adjusted of €11.6 million in 2024, with €1.4 million of decrease.

Net debt position amounted to €17.1 million, compared to a net debt position of €10.3 million as of 31st December 2024. In the next page is showed our group structure.

Indel B, Indel Marine, Condor B, Indel North America, Autoclima Group, and Lindel S.r.l. are consolidated line-by-line, while the results of our joint venture, Elber, is consolidated under the equity method.

The pro-quota interest of Indel B in their net income is accounted at EBITDA level. It should be noted that on June 13, 2025, it was finalized the acquisition of the remaining 50% of the share capital of Indel Webasto Marine S.r.l., of which Indel B already owned a 50% stake, bringing Indel B's ownership to 100%.

Indel Webasto Marine was then renamed Indel Marine S.r.l. Given the immateriality of the transaction recorded by Indel Marine and its subsidiary, Indel B USA, from the date of the acquisition of the remaining 50% to June 30, 2025, the Board of Directors assessed June 30, 2025 as the date of first consolidation using the full consolidation method.

Therefore, at the economic level, the results for the first half of 2025 of the sub-consolidated entity of Indel Marine were accounted for using equity method, while the results for the second half of 2025 were fully consolidated. On July 28, 2025, the Turkish company, Indel B Isıtma Ve Soğutma Sistemleri Ltd.

Şti., was established, 60% owned by Autoclima S.p.A. and the remaining 40% by a local partner.

Let's move now to page 5. 2025 sales.

Products sales increased from €196.6 million in 2024 to €201.5 million in 2025, up by 2.5%. This is related for -0.5% to the negative effect of the currency translation of sales, for -0.5% to the organic drop, and for +3.5% to the contribution of the new companies acquired in the period: Indel Marine and its subsidiary, Indel B USA, and the new company established in Turkey, Indel B Turkey.

Let's move now to page 6: sales by distribution channels. In 2025, OEM dropped by 8.5% to €92.7 million, contributing to 46% of consolidated sales.

The decline is primarily due to the contraction in the automotive market in Europe and North America. Aftermarket channel, generating 40% of the sales, posted a 70— 17.5% increase, driven by sales from Indel Marine and Indel B USA, starting July 1st, 2025, in the leisure market in Europe and North America.

The others, generating 14% of the total sales, booked an increase of 5.9%, driven primarily by increased sales of components. Let's move now to page 7: sales by market.

Automotive decreased by 2.3%, generating €124.3 million, equals to 62% of the group's consolidated sales. The decline affected products installed as original equipment and is attributable to the negative cycle impacting both European and North American markets, where the phase of weakness persisted through all 2025.

Leisure shows an increase of 33.6%, generating €26.4 million, equals to 13% of the group's consolidated sales. This performance is largely attributable to the contribution starting from July 1st, 2025 of the sales of Indel Marine and its subsidiary in the USA, in which Indel B acquired full ownership on June 13, 2025.

Within the segment, growth was driven in particularly by marine sector, +55.8%. The RV market also showed positive trend, with an increase of 3.6%.

Components and spare parts showed a decrease of 3.5%, generating €24.1 million, equals to 12% of the group's consolidated sales. The decrease is mainly due to a decline of the sales of spare parts in the air conditioning, recorded by the Autoclima Group.

Hospitality booked an increase of 3.9%, generating €15.8 million, equals to 8% of the group's consolidated sales. The positive performance is driven by the hotel sector, while the cruise sector was weaker, recording a decline of 6.3%.

Cooling appliances increased by 16.7%, generating €11 million, equals to 5% of the group's consolidated sales. The increase is mainly to a recovery in the professional market for milk fridge orders, +43.4%, while the home market for wine cellar showed a weaker performance, -11.7%.

Let's move now to page 8: sales by distribution region. The European market, excluding Italy, our most mature market, booked an increase of 4.8%.

The increase is mainly attributable to the leisure market, driven by contribution of Indel Marine, acquired in mid-2025, and to the cooling appliances market, supported by a recovery in the professional segment related to the milk fridge sales. This positive performance was partially offset by decline in air conditioning system sales in the automotive market.

Sales in Europe, excluding Italy, contributing to 55% of consolidated sales, equals to €111.2 million. In Italy, sales decreased by 3.8%, contributing around to 26% of consolidated sales of the group, equals to €53.2 million.

The decline was broad-based across all main markets, with the most significant impact on the leisure market, due to the weak sales in the marine sector. In the Americas, sales increased by 5.1%, contributing around to 16% of consolidated sales of the group, with €31.7 million.

The growth is attributable to the contribution starting from July 1st, 2025 of the Indel B USA sales in the leisure market, particularly in the marine segment, partially offset by the continued negative performance of automotive market sales in North America. Sales in the rest of the world showed an increase of 7.6%, thanks to the positive performance of the automotive market, specifically driven by air conditioning system sales.

Move now to page 13: consolidated revenues, EBITDA adjusted, and net profit adjusted analysis. In this slide, we show adjusted figures.

Full reported figures are in the appendix. For the year ended December 31, 2025, non-recurring items had a net positive impact, driven by €13.995 million gain from the fair value re-evaluation of the group's existing 50% stake in Indel Webasto Marine, now Indel Marine, following the acquisition of the remaining 50% in June 2025.

These gains were partially offset by €2.092 million in inventory-related acquisition adjustments and €1.787 million in other non-recurring expenses, including the impairment of the investment in Elber Indústria de Refrigeração and costs related to the consulting and the executive long-term incentive plan. In the fiscal year 2024, the main adjustments are represented by the write-down of the investment in the Elber Indústria de Refrigeração as a result of the impairment test and consultancy costs.

In the fiscal year 2025, profitability improved, with the consolidated adjusted EBITDA reaching €23.7 million, up 4.5% from €22.7 million in fiscal year 2024, representing an increase of €1 million. The adjusted EBITDA margin rose from 11.2% of consolidated revenues in 2024 to 11.4% in 2025.

This growth in EBITDA was driven mainly by the full consolidation of Indel Marine in the second half. The group net profit adjusted, however, decreased from €10.2 million, 4.9% on total revenues, compared to the net profit adjusted of €11.6 million, 5.7% on total revenues, reported in the corresponding period of 2024, representing a decline of €1.4 million.

Cost structure on page 14. Our cost basis is mainly characterized by variable cost.

Fixed costs represent about 32% of our total cost, and about 29% of our total revenues. The largest amount of cost refers to raw material and production cost, affected also from tariff.

We have been able to manage this cost, to mitigate the impact of labor cost increase and pressure on prices asked mainly from main OEM automotive customers, based on existing contract in place, and particularly arriving from the customer of actual weakest market. Another effect for what concern a difference in production cost with a bit higher fixed cost, it comes from the product mix and from price management according to the different market situation and to each specific customer, based on the rigidity or flexibility of the price and relation in place.

We will continue to work on cost side, and adapting our pricing to compensate or mitigate for the possible increase of costs arising not only from raw material, but also from renewal of national labor contract and especially from sea freight cost, raw material, and all what is related to. Let's move now to page 15.

CapEx. Our business model is lean and flexible.

Our CapEx is quite limited, and despite the investment in new production facility, we still have an interesting cash conversion rate, about 83%. On top of our normal investment on product and on production process, we purchased a new automatic equipped warehouse.

We build new production plant in Russi, Ravenna. On page 16, you find the net operating working capital.

As of 31st December 2025, net operating working capital amounted to €76.2 million, 37% of total revenues, compared to €64.8 million as of 31st December 2024, 32% of 2024 revenues. The changes in the amount of inventory, account receivable, and account payable amount is mainly due to the consolidation of the Indel Marine and Indel B USA bounds.

The inventory has not slow-moving or obsolescence problems. Let's go now to page 17: net financial position.

As of 31st December 2025, net debt amounted to €17.1 million, compared to the net financial debt of €10.3 million as of end of 2024. The net financial position worsened by €6.8 million.

I just remind you that the net financial position also includes the debt related to IFRS 16, corresponding to the obligation to make lease payment for €3.5 million. The increase in financial debt is attributable to the rising of new loans, primarily to finance the acquisition of the remaining 50% of the share capital of Indel Marine, a transaction that was completed on June 13, 2025.

It was also used to pay dividend of €0.8 per share, for a total of €4.2 million. Short outlook about 2026.

The international geopolitical and economic environment continues to be highly complex and uncertain, due to the ongoing conflict in Ukraine, and in particular to the recent tension in the Middle East involving the United States, Israel, and Iran. These developments include disruption in the Strait of Hormuz, generating not only rising cost of energy, but also of all oil-related products, logistics costs, and other main raw materials, and start to generate also shortage of some raw materials, creating a new inflationary pressure in the Western markets.

At this stage, given the uncertainty surrounding the duration and the evolution of this conflict, it is not yet possible to reliably estimate their potential impact on the group. Uncertainty is probably the word most used to define the period we are living, characterized by very low visibility, or visibility that can change much faster than we are used to in the past.

In 2026, it will be essential to maintain careful and continuous monitoring of the macroeconomic and geopolitical landscape, and consequently the evolution of the market, both from customer side and from supplier side, allowing us to promptly adjust, if necessary, the action already in place to preserve the group financial strength, as well as revenues and profitability levels. The group's starting position, characterized by low leverage, strong cash conversion capacity, and balanced financial and asset structures, currently allows us to operate without any material concern regarding business continuity.

Looking further ahead, the group remains confident in its medium- to long-term prospects, supported by expected market growth and the initiatives already underway, particularly in automotive, hospitality, and leisure sectors. We will continue to invest in industrial excellence and the development of international markets, with a strategic focus on North America and Europe.

Finally, the company will continue to invest regularly in any direction: product, production, and organization, to be ready for the future opportunities. I have completed my presentation and now at your disposal for your questions on our results.

Good afternoon, everybody. I was wondering if you can elaborate on 2026 guidance, even if, let's say, disregarding the impact on Middle East.

If you can elaborate on revenues, EBITDA trend on the year, and what, let's say, what are you seeing by each segment in this first few three or months or four months of the year?

Thank you for the question. As I said, the situation is very difficult to understand and to predict what will be the evolution, please consider this, first of all.

What we are facing in this period is, for example, an increase of orders from North America for what concerns automotive, and this is partly unexpected. We did our budget for 2026 before, of course, the war in Iran was started, and our expectation for the first half of this year was not as it is today.

Even if there is this geopolitical complex situation, the automotive OEM market in North America is going better than expected. For the rest, it's also Europe going a little bit better for automotive.

Other market, we still see marine in Europe weak, America much more resilient, hospitality more or less on the same level of last year, no big change. Those are the main market.

The most important concern and the question mark regarding the future is the cost, where it will go, because even if we see incoming orders, for example, for North America regarding automotive mainly, in the same time, we are facing all raw material growing in term of cost. Today, is not generating any impact on the profitability of the first half of the first quarter and probably also on the second quarter, because, of course, what we are going to source now, it will probably have an impact in the second half.

This is the most complicated things we are facing. All the materials, not only the oil-related ones, but mostly all the materials are increasing in term of cost.

In term of energy cost, we are not so much impacted. Our production process do not use too much energy.

Really on our production will not be the issues of the energy cost, but mostly of the components we buy: steel, copper, aluminum, plastic components, raw material for plastic, and so on. As you remember, our business with the big OEM, for example, is quite rigid.

Doesn't mean that we cannot ask price revision. We did that after the COVID, when there was a spike on the all raw material and also shortage of electronic components with cost rocket-high also about that, but it's not so easy to get, and it takes time before to obtain.

For sure, the biggest question mark today for us is availability of the component, because we start to see also difficulties to find components, especially oil-related like some specific plastic, and also to transfer the increase of the cost to our customer. It's difficult to say which will be the impact, to be honest, because we are in the middle of the way.

We don't know if this will be the level of the cost for the future, if the price will go back of the main raw material. It's really difficult.

We need to navigate in a complicated situation and to do our best like we did in the past. It seems that there is no normal period.

As soon as we arrived to a normal situation, a new storm is arriving again.

Since December, when we have done our updated business plan, there was not also the Iran war. We previewed about an increase of turnover about double-digit, 8% about, and due to especially for leisure because we will consolidate for one year of Indel Marine, and an improvement on the sales of hospitality market, and a little bit in the automotive.

Now, as Luca says, it's not easy confirm this figure.

The main problem is not order. The very strange thing is that in this moment, we do not have concern about orders in this moment.

Then maybe tomorrow, the order will disappear. Today, the concern is not regarding orders.

It's regarding cost of what you are going to buy to make our production and availability of some specific material and components. Just for to bring one real example on the table, for our production, we need in many cases magnets, special type of magnets that we source in China with rare earth inside.

China is blocking or creating a lot of problems to clear custom for this particular component, just to bring this. It's all this tension between US and the rest of the world, US and China, China that try to protect what they have.

It's really complicated. The situation is becoming more and more complicated.

Today the concern is not orders. We are not facing order disappearing.

The main problem is costs that are still growing and sometimes availability. Another clear very simple example is helium.

We use helium to make some tests, and helium again is one of the material that start to be not easy to find. The priority for helium is not for our production, must be before some other application like the hospital and so on.

In our case, we have several situations that we need on daily basis manage to find a solution. Till now, we have found solution.

Probably we will continue to find solution. That's life.

This is the main concern today. It's not order, but to be able to get components first, and then to get at the correct price.

Grazie mille.

Hello?

Yes.

Ciao, Luca. Chapeau for the results, especially for the cash generation in a not an easy period anyway.

As you say, '26 is going to be a question mark for availability of components, but I do believe that you are on the same boat as your competitors at the end of the day.

Yeah.

It's not, let's say, Indel B, which is in a tough situation, is all the market, which has a lot of question marks. I have a question anyhow on the working capital, because you generated a pretty decent level, as I said, on the cash conversion, but working capital remains anyhow elevated.

Maybe it's a blip due to the Indel Marine acquisition, which increased the inventories. Let's say, in '26, what we can expect, which level of net working capital as a percentage of sales could you consider on a normalized basis, and how much cash could you release in '26 from inventories and receivable alone?

This is a very interesting question. I anticipate Mirco because I want to give you an answer from operating point of view.

If I could have in this moment even higher, let's say, inventory, I would be happy. Of course, higher inventory of the right items, I would be very happy, because we are suffering like a hell in this moment due to the fact that components are not easy to get, because transit time, it's much longer than before.

Imagine that it is true the first answer, yeah, the net working capital increased mainly due to the acquisition of the 50% of Indel Marine and the subsidiary in US. Then we fully consolidated those two companies, which bring inside all the inventory of the Italian entity and the US entity.

Imagine that for the North American market, we source very a lot of components now, and you cannot find in other place of the world, because doesn't matter, the globalization is still there, and many, many items you find in China or in China. What we source in China, we used to produce in Italy, and then to ship in US.

Then we need to respect 100% the request of our key customer that today ask us 100 pieces, and maybe tomorrow they ask us 200 pieces. We are suffering really like a hell in this moment.

As I said before, the concern today is not the order, and we are really receiving unexpected orders higher than we consider before the war started in Iran. The main difficulty is to get parts from China, to transform in Italy, and then to ship in US.

All these processes really, really long. Today the priority for me is not to reduce the inventory.

Yes, we will work on that, because for sure, on the inventory, we have some items that are at too much higher level. For many items, to preserve and to protect ourselves from a critical situation like this one—and now start to be not exceptional, but every one year or two years, there is a new exceptional situation due to the fact the Suez Canal is closed, and then you need to go through south to the Cape of Good Hope, or maybe the war in Iran, or maybe something else, or shortage of components.

Really to preserve our business, probably we need to increase some inventory, not all, but specific one.

Yes. If we go deeper into the figure, Fausto, we can say that in a normal condition, when we have done our business plan, we consider to improve for the days of our inventory.

In 2024, was 186 days, DIO, the days of spent in inventory. Now, we improve at the end of 2026— 25, sorry, 10 days about.

Our target for the next year is arrive to 160 days. This is in normal condition.

As Luca saying, it's not easy in the condition that we see in these days. About the cash, we consider in our business plan a normal cash flow, operating cash flow, about €12 million per year, as we had in the normal situation.

Also when we consider the inventory, we must consider that both our product that are stored in warehouse in North America, both also the product of Indel B USA in North America, the same product today has higher value in the inventory because we pay tariff. Before, there was no tariff.

A product that has €100 value, just for example, now, if is it from Italy, the value is 115 because there is 15% tariff. If it's from China, it's even more, is 45% more than it's, yeah, 45% more than before.

Anyhow, we will work, of course, on this situation, because always the inventory, you miss what you need, and you have too much of what you don't need. For sure, there is a space to work and to be better.

Today, what is making a bit anxious us is to get parts to fulfill the increase of order that we are receiving that was unexpected.

Sorry, Luca, I have a follow-up on this issue. The fact that you're receiving unexpected order...

From US automotive truck producer.

...could be also the fact that some of your clients are trying to polarize on reliable, let's say, player? At the end of the day, you are a reliable player in Europe and also in US.

Some other competitors might be under stress. Do you have the gut feeling that you are getting or you could get a higher market share going forward?

What you said is partially true, but the increase of the order that we are receiving in this moment is not due to that. It's due to the market itself that is recovering.

Our customer are receiving more order. The intake order of our customer is increasing more than they expected in this moment.

The reality, the specific situation is due to that. Then it is true that some of our competitors of Indel B, but also of Autoclima, let's say, within the group, they are facing not easy situation.

To be very clear, for example, Webasto, that was also our partner inside Indel Webasto Marine, is facing a very complicated financial situation since some years, very complicated. This is an opportunity, and we get already some order from customer that was historically a customer of Webasto.

We could say also something more about specific competitors of Indel B. It's true what you said, but in this specific moment, the big quantity order that we are receiving from North America is mainly due to the market situation itself.

Thank you very much.

Yep. Good afternoon once again.

I have a, let's say, comment on tariffs, what could be the impact on 2026, and more generally, how do you manage the situation?

The tariff is mainly generating an headache to us. Today, we've been able during 2025 to manage the tariff issues, the increase of tariff, in a good way.

That means we reached an agreement with most of our with most, with all of our OEM in in North America, sharing the the tariff. In most of the cases, we we have been able to get 85% of the total tariff as, let's say, as reimbursement in most of the cases, and sometimes even more than 85.

Of course, if you consider this, it means that, anyhow, this we discussed also years ago when there was a similar situation, but if I have, for example, €50 more as a cost, and I have a reimbursement from the customer of €50, this has an impact on the profitability when I calculate as a percentage of the revenues, even if I have the compensation. I consider, even more based on that, a good result what we have achieved considering that there was a tariff, and I cannot put a markup on the tariff.

If I'm good enough, I can just be reimbursed for the from the tariff itself. About 2026, there will not be another impact, because already the agreement is in place with all those customers, the impact is mainly coming from increase of raw material costs, if we are able or not to, revise our price list in time as fast as possible to our customer, but not due to the tariff.

The tariff will generate another headache, because since when the the court in North America announced that those tariffs are illegal, of course, the the US president, US administration, introduced a new temporary tariff. Those are legal, for European production, it's still 15%, doesn't change anything, but now we have our big customer in North America, from Volvo to Daimler and so on, that are asking us formally to put in place all the efforts that have to be considered to get a reimbursement of the tariff from the US government.

Then, of course, this will have a zero impact to us, because if we get the reimbursement, we should we should give it will have a small impact to us as a benefit, because, as I said before, we share the cost of the tariff. If I pay 100, let's say Daimler reimbursed to Indel B 85, and 15 was my cost.

If I can have the reimbursement from the US government, I will give to Daimler 85, and I will keep 15 for me. It will not be easy at all to get the reimbursement of the tariff from from US government.

This this is another activity that we need to put in place based on the agreement we have been forced to sign with our customer. We will see at the end of the year if we will get back something from the US government or not.

Crystal clear. Grazie mille.

Okay. If there are no more questions, I think we are done for this afternoon.

Thank you to all of you for participating to this conference. I just want to give you a quick reminder for the next releases.

Annual General Meeting will take place on May 25th, and the quarter the first quarter 2026 consolidated sales revenues will be released on May 12th. If you still have some questions to investigate, please do not hesitate to contact me or the CFO.

Thank you very much.

Thank you. Bye-bye.

Grazie.