Esprinet S.p.A.

Good morning everyone and thank you for joining us for the ESPRIT Group Fiscal Year 2025 result presentation. I'm Giulia Perfetti, Investor Relations and Sustainability Manager of ESPRINET and here with me is Alessandro Cattani, CEO of the Group, who today together with Giovanni Testa, our Chief Operating Officer, will comment on the results. Today's call is being recorded and the podcast will be posted on the ESPRIT website in the investor section together with the presentation. Your lines have been placed on mute, but after the speaker remarks, there will be a Q&A session. Please note again that this presentation contains forward looking statements, so I would like to draw your attention to the regulation note on page 2 regarding the information contained within this document. I will now pass the call over to Alessandro to begin presenting and commenting with you on the fiscal year 2025 results. Alessandro, over to you.

Thank you and welcome everybody. It's quite an important moment for me and to a certain extent for the company and definitely for Giovanni Testa as well. For me, as you know, it's the last investor call as I will be stepping down from my position effective April 23rd. So, Giulia, if you could please move to the slides over to the first slide. We will dig into the, let's say, the reasons of this change, and we will have Giovanni introduce himself more in a couple of slides. But let me first give you an highlight on the industry insight, what happened in 2025, as well as what we did in 2025. So, as you well know, the global economy, despite an initial scenario, which had a lot of tensions, performed better than expected last year. There's been quite a lot of investments, even too much, I would say, in the artificial intelligence segment, and we'll come to this in a moment. And this was reflected in a very robust ICT spending in the EMEA region. Again, the ICT spending exceeded the GDP, And in the regions, in the countries where we operate, the Southern Europe, and now we have an exposure also to Netherlands and to Ireland, but the bulk of our business is performed in Italy, Spain, and Portugal. We have witnessed an ICT spending in these regions with a growth of 6%. and this has confirmed once more the the important role of technology within the changes in the in the overall performance huge investments in artificial intelligence. This activity coupled with the refresh of the devices which happened last year and is still going on in this moment and is the result to a large extent of the huge investments made during the COVID period which happened five years before, this coupled with the growing use of cloud on one side and the growing threats linked to cyber attacks and therefore huge investment in cybersecurity gave and are giving a really, really healthy outlook to our sector. We're coupling this with the energy transition, which probably the latest geopolitical events in the Gulf will, we expect, accelerate furthermore the transition itself. And hence, we're really excited of our move through Zeljetek into this energy business. The overall ICT market grew 6%. We had the distribution channel where we operate, performing again in a very good shape, much, much stronger, the performance in Spain and Portugal than the one in Italy. But Giovanni will dig into the numbers in a second. What's important is that the go-to-market represented by distributors, and S-Print is one of them, grew once more and the weight of this go-to-market is now around 48%. So, healthy performance in this sense. Now, moving to the next slide, we're going into the highlights of what we did last year. First of all, the sales have been pretty solid. We had a 5% year-on-year gross sales growth up to 4.6 billion. I recall that the numbers that we report are net of the IFRS 15 principal agent principal accounting principle. there's more than 300 million euros of gross sales that are not reported at sales and just as a gross profit. So gross dresses were up five percent and we had an extremely uh brilliant performance in the iberian peninsula and italy was substantially flat in line with the performance of of the market we have been focused as you well know in the higher added value markets of Vivaldi, so digital solutions on one side and services, and Zeliatek, so green transition. And we have outperformed the market. I'm happy that our focus on these areas has delivered as expected, and frankly speaking, a little bit more than what we expected. We had a very positive performance on PCs as well. The remaining products, mostly consumer electronics as well as printers and accessories, recorded once more some decline, most of it linked to our decisions to progressively shed those kind of businesses that we deem as not profitable enough or not providing return on capital employed good enough for us. In terms of profitability, we had a range of EBITDA adjusted and we delivered on the upper range of our guidance. We had a good Q4.

But it's slightly less than.