Natuzzi, S.p.A.

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Natuzzi, S.p.A., first quarter of 2026 financial results. Interested people can also join this conference call live by telephone by dialing the following number, 1-201-493-6703, then enter the passcode 392-521-03-POUND. in addition to the link already provided to join via video. Again, as a reminder, you can also join this conference call live by telephone by dialing the following number, 1-201-493-6703, then enter the passcode 392-521-03-POUND in addition to the link already provided to join via video. At this time, all participants are in a listen-only mode. Following the introduction, we will conduct 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, as usual, Pasquale Natuzzi, Executive Chairman and Chief Executive Officer, Pasquale Jr. Natuzzi, Chief Commercial Officer and Chief Product Division Officer, Carlo Silvestri, Chief Financial Officer, and then 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 go ahead.

Thank you, Daryl, and good day to everyone. Thank you for joining the Natuzzi's conference call for the 2026 first quarter financial results. After a brief introduction, we will give room for the 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 laws. 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 annual report on PON28F filed 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. And now I would like to turn the call over to the company's chief executive officer. Please, Mr. Natuzzi.

Thank you, Piero. Good morning everyone and thank you for joining us today. The results for this quarter 26 are clearly disappointing and reflect a combination of external and internal factors that had significant impact on the group performance. On the external side, we continue to operate in a complex market environment, marked by geopolitical instability. carried some sales in United States, announcing market at historically low levels and persistently weak consumer sentiment. In addition, the transfer of Natuzzi edition production from United States market from China to Italy negatively affected the margin profile of this production line. Therefore, these results confirm the need to take decisive action on certain structural elements of the group. In particular, our industrial footprint in Italy is currently oversized compared with the present sales volume and coverage cost levels that are no longer sustainable. For this reason, since the beginning of July, We have started executing a restructuring plan aimed at significantly reducing our fixed costs and improving overall efficiency. The plan is based on a number of very concrete operational leaders. First, we have initiated the transfer of Natuzzi Edition production for the United States market from Italy to Romania. This initiative is designed to improve the industrial margin of this product line and, consequently, reduce the losses associated with this production. Second, we have rationalized our industrial operations in Italy, reducing the number of operating plants from five to two plants. This is a necessary step to eliminate fixed costs and are no longer aligned with the current size of the business and to create the conditions for economies of scale. Finally, we have already received expressions of interest from 120 Natuzzi employees to participate in a voluntary exit program. We are fully aware of the complexity of this phase and of the impact that the decisions currently underway may have on our organization. At the same time, we believe that acting now with discipline and urgency is essential to strengthen the group economic sustainability, protect the competitiveness of the Natuzzi brand and lay the foundation Thank you very much for listening to me. Thanks.