Good afternoon to everybody and thank you for attending this call. I'd like to start this call with a memory of Pietro Iotti, former CEO, who passed by last 18th of February.

I have been working with Pietro for 9 years and under his leadership we have shaped what Sabaf Group is today. Today the Board of Directors of Sabaf has appointed me in the role of CEO, for which of course I'm really honored.

I have been serving Sabaf for nearly 30 years now and I will do my best to continue under the path on which we have been working in the past years. Together with my appointment, the board has also appointed, Andrea Bonfardelli as general manager or chief operating officer of the company and of the group.

I have been working with Andrea for nearly 20 years. He is now, he was up to to today the technical director of the gas division and director of the supply chain of the entire group.

We have been so working together on many issues, on many matters jointly with, full respect one of the other, and I'm sure that, together with Andrea and together with the other managers of the group, we will grant the continuity which our group deserves to go under the path of growth that on which we have been working up to now. Coming now to a comment to last year's results, we have closed '25 with sales at €279.2 million, which is 0.8 growth, compared to '24.

At the same exchange rate, growth was 2.2%, a result that we value as satisfactory considered that the markets have been still in a weak mood and well below what we consider the normal level of demand. In mature markets like US and Europe, we estimate that the final demand for white goods is still around 10% below what is the level pre-COVID.

Together with this growth in sales, we have improved the profitability, and this also is important, of course, with EBITDA at €41.4 million of euros for the full year, 2.4% growth against compared to '24. EBITDA margins also reached 14.8% of sales against 14.6.

In general terms, we can say that we have been successful in implementing our main projects, especially we have seen visible results in synergies with MEC, the American company manufacturing hinges, which has delivered solid growth, double-digit growth in sales and substantial improvement in margins. We continue with the fast ramp-up of the Mexican plant, which has nearly more than doubled the sales compared to '24, which was the first year of operation.

Also we have brought the Mexican plant to be profitable in terms of EBITDA after just at the second year of operations. We are going we are continuing also to to going under what is the plan, following that our plans in other strategic initiatives including including India, for which we know that the results are expected more in the mid-term, but let's say that the feeling also in this case is particularly positive.

The improvement of margins has been possible not only because of the ramp-up of the new projects, but also because we have continued to work on the efficiency and the optimization of the operational processes, and also we have we have also paid particular attention to energy saving energy savings and energy efficiency, including also investments for solar solar plant production and for other initiatives in reducing the use of energy in our internal processes. This, these good results for the year has also been confirmed during the fourth quarter, in which which is seasonally a weaker quarter, sales have has be have been lower than print in the previous quarter, but in any case growing 0.8% against fourth quarter '24 and have reached €65.4 million.

More important is growth in terms of EBITDA with which has reached €10 million or 21.5% of of of growth compared to '24 and EBITDA margin which is now at 15.3%, well over also the full year the full year results. This is linked to the fact that during the year the actions that I have mentioned before have taken full effect.

I mentioned the particularly good results in North America and in Mexico in both US and Mexico, which most come from the fact that our group has gained market share. The market itself has not ex- experi- experienced any particular growth.

We have been also slight- slightly growing in Europe. Good results have been obte- have been consuntivated, obtained also in Latin America.

Brazil confirmed for the second year a solid a solid market. Also in this case, we have been gaining share with new new deliveries to to customers, also in this case, higher share.

Among the markets that have been particularly weak, we have to mention the North Africa and the Middle East region, which has been affected by the macro macropolitical, geopolitical, and macroeconomic situation. This market has been and Turkey the two areas weaker during during the year.

As regards total investments in '25, they have reached €18 million, substantially in line with the budget. We have continued to work on improving production capacity in inter- on on in our international footprint that now I consider next very next to the optimum.

We will continue to to grow an- as in international footprint, but we now can say that we have active plants in all the strategic areas of the world. I've mentioned before that we have also worked in and invested for, improving efficiency of the processes, automation.

We continue to to work with state-of-the-art technology, which is part of our excellence in production and consequently in results. As regards the financial performance, we can say that working capital is under control, is substantially stable as a percentage of sales compared to to last year.

Also the net financial position is which closes at around €75 million is substantially in line with the end of '24 and has improved from the €83 million that was at the third the 30th of September. Fluctuation in the net financial debt includes a higher valuation of the put option on the minority stake of MEC, of Mansfield, which is linked to the fact that the value of this minority stake is dependent on the results.

The results are improving and also the minority stake value is is improving. This has affected the net financial position for around €3 million.

I'd like also to spend a couple of words on the different divisions, where the perfo- the better performance was obtained by the hinges, on which we have grown shares, implemented some synergies. Let's say that both in Europe and the US, we have been growing we have seen growing sales and growing results.

Also gas the gas division is is on the positive side, while we have continued to be relatively weak on electronics, which has for which sales have been declining compared to to '24. Here we know that, there are different reasons, among which a higher pressure from Chinese competitors.

We are working to counterbalance these these issues and have continued to, work on new R&D projects that go in the direction of higher diversification, for which in '26 and in the years to come, we expect to to see the results. We have not in any case slowed down the investments and the R&D on electronics, because we continue to consider it strategic for the group, of course.

As we continue to consider strategic the induction division, for which results in 20 '25 have been still really, poor, really, let's say sales are still in the beginning phase. We are going to reshape and to adj- adjust our business plan on this division in order to make it possible that all the work we have done so far can bring in relatively short times to positive results, because we know we have known a lot from the experience we have done so far, and it's now nearly the time to to to bring results.

We we continue to work also on this side. For, as regards other decision made by the board today, I'd like to underline the proposal for a dividend of €0.58 per share, which will be submitted to to the approval of the shareholders meeting, of course.

The dividend is the same as the one we have paid during 20 25. I for the moment I stop here, and remain available for for the Q&A session.

Thank you.

Yes, good afternoon, everybody. Thanks for the presentation and congratulations for the new appointments.

I have a couple of questions. The first one is on the geopolitical context, which led to some increase in the energy prices in the last few weeks.

I was wondering which kind of impact should we expect from this on profitability, also considering all the investments you completed in the solar plant and in general efficiency in terms of energy, and maybe in some hedging you have for the next few months? The other one is if you have any indication on order intake in the first part of the year, just to have a sense of how market and demand is going at the beginning of '26.

Thanks.

Thank you, Emanuele. Yes, as regards energy costs, of course, we are monitoring the situation because, as there is high volatility.

We have to be close to understand what is the impact on one side, with a sensitivity analysis on our profit and loss. I can say that around 40% of the energy cost of Italian sites are hedged.

On this, we are relatively on the safe side, while as regards energy cost in the other major plants of the group, Turkey and Brazil, we have not experienced so far any impact. Of course, if the situation of the cost of energy, both electric energy and gas, stays at this level, we have to act to pass through these energy surcharge into selling prices.

It depends on how during next days and weeks the situation evolves, both on energy and on impacts on other inputs, including some raw materials that are experience some volatility. We have all the instruments to understand what is the potential impact and promptly react.

As done in the past in situation of shocks, we have been able to adjust selling prices relatively fast. Of course, it's a matter that requires attention, but which I consider under control.

As regards the order intake, the year has opened with a trend which is of substantially stability compared to what has been on average '25. We compare specifically on the first quarter, we know that we compare with a strongest and solid result in Q1 of '25.

We also know that especially on Q1, we have a difficult comparison as regards the forex, with the dollar that has been much weaker than in Q1 '25. Apart from that, the general trend of demand is on average with '25.

Of course, the situation of the conflict in the Middle East in March can give consequences, and it depends how long this situation goes on. We have a direct limited exposure to the Middle East, but some of our customers work with the Middle Eastern countries.

Even if up to now we have not a visible impact, apart from some deliveries that could be postponed from March to April, we are not still in the position to understand if this impact will last, because of course will depend on how the geopolitical situation can evolve. This at first can impact specifically that area, but as you can imagine, and as for every business, if the situation worsen, there could be also a more general and global impact.

We are in the position to manage and to promptly react. The group has proved also with other shocks in the previous years to be ready to manage it, and so we will do our best also in this situation.

Okay. Thanks.

Thank you very much.

Good afternoon. Let me start saying that also for me was really an honor to work with Ing.

Iotti. Now moving to the operations.

I have a question on, in particular, if you can provide a sense of, you were saying, okay, broadly similar to 2025 on average. Is it true across geographies or do you see differences in different geographies, excluding the FX, on a constant forex basis?

Then second question is on the M&A pipeline and also M&A strategy. You're saying that you will continue on the same trajectory in terms of strategic vision.

I wonder if you are still looking at potential M&A, if you can give us an update? Third, just a clarification on the financial charges that I see in the P&L, if you can maybe extract the FX impact from the real, say, the bank charges?

Yes. Thank you.

Thank you, Domenico. Yes, as regards the first question, and so the split among geographies, let's say that there are areas in which we expect substantial growth mainly driven by, let's say, our own plan rather than by general market trend.

This is specifically true for Mexico, for Brazil, for India, and somewhat also for China. In these areas, Sabaf is expected to further grow share during the year.

Also strategically, looking at the middle term, this will continue to be areas for which we have visibility for further growth. We expect substantial stability in Europe, in US.

We expect Turkey to be stable or negative, and we expect Middle East and North Africa to be highly negative during the year, at least with the current scenario. Of course, then if the situation changes, could be impacted also on positive sides, but at the moment, as you can imagine, situation is rather difficult in this area.

As regards M&A, I confirm that the strategy remains unchanged. We continue to work on open opportunities, taking into consideration the uncertainties of this moment, for which we have to understand if this could affect also the M&A strategy.

There is no hurry to close a transaction in a few weeks. It's better, from my point of view, to understand also the evolution of the macroeconomic scenarios and macroeconomic and geopolitical situation.

I confirm that we will to continue to work on what we have been done so far and also scouting for further opportunities. No change in the M&A strategy with the aim of further diversification, both on the product side and on geographies.

In the end, as regards information on the financial charges, during the year we have booked €5 million costs as regards the evaluation of the put option for MEC. For the same put option, we have also booked €1.5 million as regards a positive forex effect because these financial liabilities is in USD, and so with a weaker USD this has a positive impact.

Net, the adjustment of the valuation of MEC put option is negative for €3.5 million, of which €5 million has been booked as financial charges and 1.5 as a forex income.

Okay. Very clear and for sure, Gianluca, congratulation for the new role.

Thank you. Thank you, Domenico.

Yes, I take a few minutes more. You have completed at this point the review of the main price negotiations, you have some visibility also on the raw material cost.

Can you give us a sense of what are the main moving parts in 2026 in terms of profitability or cost items?

Yes. Let's say as regards the part concerning sales prices and input costs, we expected that net of the effects of the conflict, for which adjustments could be necessary, if we look at the situation up to one month ago, we expect minor changes both on the input costs, because we have been moving in advance to hedge a significant part of the raw materials for the year, at least for 5-6 months, and we have made some small adjustment in terms of sales prices.

We do not expect any major impacts. Let's say that with the new scenario, as mentioned before, if the impact of costs goes on and goes over the portion that is hedged, we will react by adjusting selling prices.

On the other side, the work that we have done during '25 on improving the efficiency of the factories and reduction the energy consumption, that has fully deployed, especially in the fourth quarter, will continue and will have full effect in on the year. From this, we expect a structural benefit that could bring to an improvement of our profitability for the year.

Of course, there are a lot of factors that could impact on one side and on the other, but let's say that we are confident to further improve the average profitability for the year, even if volumes as usual will have a fundamental impact on what is also the profitability of the group, because, as operational leverage is one of the key issues for us.

Okay. Thank you.

Yes, just a quick follow-up on MEC, which performed really well since the acquisition, and also in 2025 has some strong results. Could you give us an idea of the outlook you have for the company, also considering the current geopolitical outlook?

Yes. Let's say that if we look at its own business for MEC itself, we see a further year of growth, maybe not at the same pace, not double-digit as it has been in '25, but I confirm that we are working on a lot of projects with customers, also thanks to cross-selling, for which, apart from what are the expectation for '26, we continue to be very confident on the potentiality of MEC in terms of growing sales.

We continue also to work on the operational efficiency and of automation. We have still done just a small part of what we see that is possible to do, and so also in this sense we are confident that MEC will continue to give us a lot of satisfaction.

Important to say that MEC is also a US base for the group that could open the option for further products, which are already in the product range of our group or which could come. Also the strategic importance of a plant there is one of the factors that we consider of strategic relevance for the future.

In this sense, some small activities also for the gas business have started, but this is just an example of what we could reach also in the future by taking advantage of this site in Ohio.

Thanks a lot.

Yep.

Thank you everybody for joining the call. For who attends the STAR Conference, we will see tomorrow in Milan.

Thank you again. Have a good afternoon.