Vantiva S.A.

Ladies and gentlemen, good afternoon. Welcome to Vantiva First Quarter 2025 Self-Conference Call, chaired by Tim O'Loughlin, CEO, and Lars Eilen, our CFO. At this time, all participants are in a listen mode only. Later, we will conduct a Q&A session. If you would like to register questions, please press star 1 on your telephone keypad. Just to remind you all, this conference is being recorded. We would like to inform you that this event is also available on our Ventibas website with synchronized slideshow. During this call, statements could be made that constitute forward-looking statements based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecasted, implied by such forward-looking statements. For a more complete list and description of such risks and assertities, refer to Von Siva's filing with the French Autorité des Marchés Financiers. I would like now to hand over the call to Tim. Please go ahead.

We're going to move to slide four. Hello, everyone, and thanks for joining our Q1 call. I'd like to start by thanking all of our customers and all of our employees for another positive call. quarter. We had a strong start to the year, a couple of key points to walk through. We saw demand pick up for the quarter. We have several operators who are restarting orders. We've been staying ahead of the curve and delivering double digit growth. We launched some new Wi-Fi 7 gateways with key customers and started deliveries to some other additional customers. The early success suggests that our strategy and plan are on the right track. We completed the sale of the supply chain solutions business and we're now completely focused on our core PPE business where we see some clear opportunity. There's been a lot of change happening in the world as all of you are familiar with. We still believe that our strategy of staying flexible will now allow us to efficiently serve our customers. We've continued our work on our cost structure to enable that flexible structure and our efficient service to customers. We've been watching the global trade and tariff regulations. The picture is still a bit uncertain. It reminds me all the time that flexibility matters. Like most of the consumer electronics, companies in the space. Vantiva has some exposure to Southeast Asian manufacturing and exposure to supply chains that could be impacted by tariffs. We're continuing to closely monitor that situation and we're working very closely, especially with our U.S. customers on all of the tariff topics. Finally, I'm pleased to be able to confirm that we are still on guidance for the year, assuming that there is no further market disruption from any of the global trade and tariff regulations. Overall, the company is extremely focused and we're in a good place to keep building on our Q1 momentum. Next slide, slide five. Let's look into the specifics of Q1 revenue. Revenue grew by 13.5% year over year, reaching 406 million euros. The broadband business led the way up 24% year over year, thanks to new Wi-Fi 7 deals that are ramping up in North America. And we saw some strong demand for our hybrid 3.0 products in our Asia Pacific region. The video segment experienced slight growth rising by 3.9% despite weaker demand in the Latin American region. We updated our diversification activities. We're now including our maintenance and support business and our commercial video services business, formerly known as MCS. We're grouping all of that into diversification. It was previously grouped with broadband and video. For clarity, we've adjusted the 24 numbers to reflect this change. The diversification segment saw revenue drop by 18.5%. This was mainly because large retailers cut back on their inventory levels due to softer market demand. With that said, several areas within that diversification segment continue to show potential and we're tracking them very closely. I'm also pleased to share that we received another gold medal for EcoVadis for our environmental performance. We've had strong marks in this area for several years now and Vantiva continues to be completely committed to corporate sustainability efforts. Next slide, please. Slide number six. As I mentioned earlier, we're on track to deliver over 150 million euros of adjusted EBITDA for the year and positive free cash flow. Again, this all assumes that there aren't significant market disruptions from global trade and tariff regulations. That wraps up our prepared material. Lars and I are happy to answer any Q&A.

Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one on your telephone keypad.