Fluidra Sa

Good morning, and welcome to our first quarter 2025 results call. I'm Clara Valera, Strategy, Investor Relations, and FP&A Senior Director. Joining me today on this call is our Executive Chairman Eloy Planas, our CEO Jaime Ramirez, and Xavier Tintoret, our CFO. They will walk you through a few slides on our results, and then they will all be available to take your questions. You can follow this presentation in its original English version or in Spanish. Please select from your preferred option in the drop-down menu at the bottom right-hand side of the 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 that in details. After the registration process, you will need to press star five 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 will be made available on our website later today. With that, I hand over to our Executive Chairman, Eloy Planos.

Thank you, Clara. Good morning, and thank you for joining our first quarter 2025 results call and for your interest in Fluidra. Jaime and Xavier will provide more details shortly, but let me start with a few key points from my side. We deliver a strong Q1 performance with sales up 7 percent and growth across all regions in a dynamic environment. This is our third consecutive quarter with year-on-year volumes growth, which is strongly up in North America and also growing in Europe. we are clearly outperforming the market. We expanded gross margin by 250 basis points thanks to the diligent execution of our simplification program, which is on track to deliver the savings expected for the year. We also reduced our leverage ratio compared to the first quarter of 2024 with a stable working capital to sales levels. As you know, we have been agile in implementing an action plan to offset the impact of tariffs. Jaime will talk about it in more detail later. In line with our consistent capital allocation framework to generate sustainable value, we continue to invest in value-accredited acquisitions. You can see our two most recent deals on the slide. First, our strategic alliance agreement and 27% investment in Hyper, an innovative cordless robotic pool cleaning player that will help us develop our current product portfolio and provide presence on the direct-to-consumer channel. Completion is expected in the second half. The second one, Pool Tracker. Our last acquisition, an excellent pool pro software platform created in Australia that can be rolled out worldwide and which will help us accelerate our digital strategy. As you know, we are holding our annual general meeting today on the agenda of we are pleased to propose a dividend of 60 cents per share, testament to our confidence in the resilience of our business, representing around 50% adjusted EPS payout in line with our dividend policy and capital allocation framework. Following a strong first quarter, we are maintaining our 2025 guidance as we move into our second quarter of main pool season. We continue to manage what is within our control to serve our customers and offset the impact of tariffs and are closely monitoring developments. While macro and geopolitical uncertainty remains elevated, we are confident we will continue to deliver sales and EBITDA growth this year. We are a global leader in an attractive industry driven by long-term structural growth dynamics. having positioned the business for growth and transformation. I'm proud of the team's focus on long-term value creation while taking action today to navigate uncertainty. We look forward to discussing our results with you this morning, and with that, I hand first to Jaime to continue with our presentation.

Thank you, Eloy. It is a pleasure to be here with all of you today. Moving to our Q1 performance on slide five, I will provide some highlights and then turn it over to Xavier to share more detail on the financial results. Our performance in the quarter was strong, and I thank the teams for their delivery in a dynamic start of the year. Sales were up 7 percent year-on-year, 5 percent on an organic basis, to €564 million, with growth across all regions driven by higher volumes and pricing. Adjusted EBITDA was up 10% year-on-year, 8% on a constant FX and perimeter basis, to 131 million euros, which represents a 23% margin. This reflects the strength of our business model, with consistent improvement in gross margin, driven by our initiatives to increase efficiency and productivity together with mix, and partially offset by higher OPEX. Xavier will provide more quarter later. Going down the P&L, adjusted EPS was up 12% year-on-year. We managed working capital well while growing the business and preparing for the pool season. The level of operating net working capital to sales in the last 12 months was around 29.6%, stable versus the prior year. And we reduced leverage by 0.3 times net debt to adjusted EBITDA on similar net debt levels. On slide six, you can see on the right-hand side chart the strong volume contribution together with positive pricing. Organic growth was enhanced by the contribution of the bolt-ons we agreed last year in Australia, Portugal, and Central Europe. In North America, sales were up 7% organically year-on-year, in line with sales through across our customer base, gaining market share. This performance is testament to our easy-to-do business with customer-centric approach, our exposure to the Sun Belt, and our meet-to-high-end market positioning. In Europe, the positive trend we started to see in Q3 2024 continued, with around 3% organic growth in Q1. Software trading in France was more than offset by the good performance in the rest of the main markets, and we achieved similar growth in the rest of the world on constant FX and perimeters. Overall, while new bill demand remains soft, aftermarket demand was resilient and we continued to gain share. Turning to page seven, let me provide some color on the action we're taking to offset the impact of tariffs we know so far. As you are aware, the tariffs enacted at present differ from those in effect at the time of our last earnings call. We now expect a lower effect from tariffs on imports from Mexico, given our high degree of USMCA compliance, but a greater impact of tariffs on Chinese inputs. We estimate the gross impact before any mitigation action will be around 50 million euros in April to December 2025, while the full-year impact will be around 70 million. We know the situation remains fluid, and we continue to monitor it. As Eloy pointed out earlier, we anticipated this tariff situation for some time and have an action plan to offset the impact, working with our suppliers and our team to reduce costs. Additionally, we have implemented price increases in North America with further increases planned. Our expectation is to offset entirely the impact of TARIS on the P&L in 2025 with the action plan I just described. Next, on the slide eight, let me quickly touch on our latest deal. I'm pleased to announce we just acquired PoolTracker, an Australian SaaS player that offers a best-in-class management platform to streamline every aspect of the operations of a pool professional. PoolTracker will be rolled out globally and make it easier for our customers to increase their scale by automating services, improve customer engagement, and boost digital sales and demand generation. It is also worth highlighting the fact that this platform will allow connectivity and integration with the Fluidra pool app. I'm excited about this acquisition, which will significantly accelerate our digital strategy and value creation. I believe digital, technological transformation, and innovation are critical to enhance the pool per experience and drive demand generation. This €6 million acquisition is in line with our capital allocation framework and investment threshold. With that, I will turn it over to Xavier to explain the financial results in more detail.