Fluidra Sa

Good morning, and welcome to our first quarter 2024 results call. I'm Clara Valera, Strategy, Investor Relations, and M&A Senior Director. Joining me today on this call is our Executive Chairman, Eloy Planas, our CEO, Bruce Brooks, and Xavier Tintoret, our CFO. They will walk you through a few slides on our results, and then they will be available to take your questions. You can follow this presentation in its original English version or in Spanish. please select your preferred option in the drop-down menu at the bottom right-hand side of your screen. If you would like to ask a question, please find the information and instructions in the Ask a Question tab on the webcast. Please register to receive dial-in details. After the registration process, you will need to press Start 5 on your telephone keypad to ask your question. The presentation is accessible via our website, fluidra.com, and has also been uploaded to the Stock Exchange Commission this morning. A replay of today's presentation will be made available on our website later today. With that, I hand over to our Executive Chairman, Eloy Planas.

Thank you, Clara. Good morning to you all, and thank you for taking the time to join us this morning and for your interest in Fluida. Today we are presenting our first quarter, 2024 results. Bruce and Xavier will provide more details shortly, but first I would like to summarize the key points I want to convey with you this morning. Our first quarter performance was in line with our expectations in a more normal trading environment in our sector. We saw demand for maintenance and repair holding up well. Let me remind you that this accounts for the majority of our sales. Regionally, U.S. was a little ahead of our expectations, and Europe was slightly behind, with the positive trading that we have seen in April on both sides of the ocean give us confidence for the year. On top of that, please note that this year, Easter fell in March, which means less trading dates, but even more important, an early Easter, often shifts the season's preparation to the second quarter. Regarding our financials evolutions, we are really encouraged to see our gross margin expansions driven basically by the simplification program, which is strengthening our business for the long term. Working capital and net debt levels reflect the usual seasonality as we prepare for the pool season, But nevertheless, they are improving versus the first quarter of 2023. As you know, in just two hours, we are holding our annual general meeting today. And on the agenda, we propose a dividend of 55 cents per share, representing a 50% cash net profit payout, consistent with our dividend policy and our capital allocation framework. As I've shared with you before, we are confident in our full year delivery, and our 2024 guidance remains unchanged. We continue to work to strengthen our leadership in a structurally attractive industry, and with that, I will pass the floor to Bruce to present our Q1 results in more detail.

Buenos dias, Eloy. And thank you all for participating today on this conference call. Moving to slide number five. Let me start with comments on our overall performance and highlights for the first quarter, and then turn it over to Javier to provide more detail on the financial results. The numbers you see on slide five are the 2023 and 2024 financial highlights for the first quarter. Sales declined by 5%. to 527 million euros, driven by lower volumes, which were affected by having less trading days in the quarter, as Aloy pointed out earlier. Partly offset by higher prices, this performance was in line with our expectations. EBITDA of 118 million euros was broadly stable year on year, reflecting improved gross margins thanks to geographic product mix together with the contributions of the simplification program, almost offsetting the effect of lower sales. Going down the P&L, cash EPS was similar to prior year. We managed working capital well. Operating net working capital to sales in the last 12 months was around 29 percent compared to 32 percent last year, down more than 300 basis points. Please remember that in Q1, we usually invest in inventory to prepare for the pool season. Javier will provide more detail later. Lastly, the ratio of net debt to last 12-month EBITDA at the end of the quarter was around three times. Seasonally higher, although lower than the prior year period. As usual, we will generate more cash in the coming quarters. Moving to slide number six, let me share our progress on the simplification program. This program is delivering long-term value and structurally strengthening our business. It is built on two areas, improving gross margin together with reducing organizational overlaps and streamlining our operations. It is also underpinned by our drive to foster an agile and dynamic culture. In total, the simplification program delivers cost savings of around 100 million euros between 2023 and 2025, with total related one-off costs of approximately one time the annual ramped up savings. We achieved the target cost reductions in 2023. The program is also on track to generate more than 30 million of savings in 2024, driven by global strategic procurement efforts and product design to value initiatives. As of the end of Q1, we have already reached savings of 6 million euros, laying a good foundation to achieve our full-year target. We will continue to provide you with regular updates as we progress. Moving to slide number seven, here's a good example of our focus on innovation. As you know, we are a global leader in automatic pool cleaning equipment, a category where we expect growth, in particular around robotic cleaners. And our success goes hand in hand with our understanding of customers' as well as end users' needs. Following the exciting launch of our innovative cordless in-ground pool robot, we have expanded the automatic pool cleaning category to address the number one pain point in end-user experience, the cord. We are proud of the Freerider's success, which has been very well received in the market, and welcomed with a number of industry awards for its innovative design and outstanding cleaning performance. both in North America and key European markets, including the 2024 Product of the Year Award in Iberia. The cordless and hassle-free experience delivered by our battery-powered robot can now also be enjoyed in above-ground pools and spas, making pool cleaning effective, easy, and convenient for the pool owner. We continue to focus on innovation in digital, sustainable, and easy-to-use solutions to create the perfect pool and wellness experience responsibly. Moving to slide number eight. On the right side of the slide, you can see the positive contribution of price to sales performance in the quarter and the volume decline, with FX and perimeter offsetting each other. sales were in line with our expectations in a more normal trading environment, keeping in mind the less trading days in the quarter. Although new construction and remodel were somewhat softer year on year, repair and maintenance held up well, given their less discretionary nature. Commercial pool continues to grow strongly. By region, Sales were better than anticipated in the U.S., benefiting from not having the correction of inventory in the channel and our mid- to high-end positioning. In Europe, trading was slower in the first quarter, with a wait-and-see approach by our customers before the start of the pool season. With positive trading in April and the performance in Q1, our expectations for the year are unchanged as we head into the more seasonally important quarters. With that, I'll turn it over to Xavier to explain the financial results in more detail.