Natuzzi, S.p.A.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Natuzzi fourth quarter and full year 2020 conference call. At this time, all participants are in a listen-only mode. Following the introduction, we will have a question and answer session. Instructions will be provided at that time for you to queue up for questions. Joining us on today's call are Natuzzi's Chief Executive Officer, Mr. Pasquale Natuzzi, then Mr. Pasquale Natuzzi, Jr., Chief Marketing and Digital Transformation Officer, the Chief Financial Officer, Mr. Vittorio Norpietro, then Mr. Jason Camp, President of Natuzzi Americas, and Piero Direnzo, Investor Relations. As a reminder, today's call is being recorded. I would now like to turn the conference over to Piero. Please, sir, go ahead.

Good morning to our listeners in the United States and good afternoon to those of you connected from Europe and Asia. Welcome to Natuzzi's fourth quarter and full year 2020 conference call. After a brief introduction, we will give room for a Q&A session. Before proceeding, we would like to advise our listeners that our discussion today could contain certain statements that constitute forward-looking statements under the United States securities law. Obviously, actual results might differ materially from those in the forward-looking statements because of risks and uncertainties that can affect our results of operations and financial conditions. Please refer to our most recent 20F file with the SEC for a complete review of those risks. The company assumes no obligation to update or revise any forward-looking matters discussed during this call. I would like to turn the call over to the Chief Executive Officer. Please, Mr. Natuzzi.

Thanks, Piero. Good day and good afternoon to all, and thank you for being present at this conference. It is really a pleasure to be able to communicate and interact with you for an update on 2020 financial results and business trends in general. As you know, we are a global company with factories in Europe, Italy, Romania, in Asia, China and South America, and with distribution network and store at worldwide level. Therefore, we had to face the pandemic at the global level, starting from China in January 2020, until the current lockdown in many European nations unlikely. As a planet, in 2020, we completed the downsides of our factory in Shanghai, reduced the transformation costs, and started the outsourcing in Vietnam to improve margins. We reduced the selling, general and administrative expense, and in particular the cost of labor. In 2020 were 320 million euros. Minus 15.1% compared to 2019, EBITDA was positive for 12.3 million, significantly improving compared with the previous year. Sheds in fourth quarter are 99.9 meters, minus 0.6 compared to 2019, with a positive EBITDA of 7.6 meters, an EBIT of 2.4 meters, with an improvement in the cash generation, on which Vittorio Notarpietro, our CFO, will give you further details. We are satisfied with the 2020 order flow, which was only 2% less than 2019, if we consider the entire year of the pandemic, obviously. In the second half of the year, obviously, the order flow was higher than our production capacity. In fact, At the beginning of 2021, we had a backlog that was of €45 million, higher than the previous year. In the same way, the order flow during the first 13 weeks of 2021 reports an increase of 18% compared to 2020, with excellent performance in all markets. The only exception of South-West Europe, and in particular thanks to the excellent performance of the North American market, for which Jason Kant, our President of Latouche America, would be able to provide further details. It should be noted that as we have not been able to participate in the market fairs during the lockdown, We have used the new technologies to digitalize sales through virtual fairs and conferences, on which Pasquale Natuzzi Junior, our marketing director, will be able to provide further details. I will now turn the conference call over to Vittorio for further details on financials, and then I will be here available for any questions you may have. All right? Thank you. Vittorio, it's your turn.