Fluidra Sa

Good morning and welcome to our full year 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 Ramírez and Xavier Tintoret, our CFO. They will walk you through the presentation and afterwards we will open the floor for questions. You can follow the presentation in either English or Spanish by selecting your preferred language 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, and after the registration process you will need to press star 5 on your telephone keypad to ask your question. The presentation is available on our website, fluida.com, and was filed with the Stock Exchange Commission earlier this morning. A replay will also be available on our website. With that, I now hand over to our Executive Chairman, Eloy Planos.

Thank you, Mara. Good morning, and thank you for joining our result call today and for your interest in Fluida. Jaime and Xavier will provide more details shortly, but let me start with a few key points from my side. We delivered strong results in 2025, continuing to outperform the market while advancing our strategic priorities in a dynamic environment. This achievement is a testament to the strength of our platform, the clear strategy and objectives we pursue, and the dedicated Fluidra team behind it. My sincere thanks to all of them for their resilience, commitment and contribution. At constant FX, sales were up 7% and EBITDA grew 9% in the year, reflecting consistent volume growth across all the regions. We are particularly pleased with the market share gains achieved in 2025, which has been a focus for us. We successfully delivered the final year of the simplification programs. Since its 2022 launch, margin expansion has been significant. Gross margin has improved by more than 500 pips and EBITDA margin by 150. And there is more to come, as Jaime will explain shortly. Cash generation was strong, further consolidating our progress in working capital management. Net debt to EBITDA stood at 2.2 times at year end, down 0.2 times versus last year, while accommodating dividend payments and the completion of paper and other acquisitions in 2025. We are pleased the Board of Directors has proposed a 2025 dividend of 65 euro cents per share, up 8% versus prior year. subject to shareholders' approval. This reflects the confidence in the future of our business and represents a payout of approximately 50% of adjusted EPS, fully aligned with our dividend policy and capital allocation framework. If approved, the dividend will be paid in two instalments in the second half of the year. Today, we are also introducing guidance for 2026. While macroeconomic and geopolitical uncertainty remains, we are confident in our ability to continue delivering growth in sales and EBITDA margin expansion. Beyond 2026, we expect to further expand our leadership in a structurally attractive industry, with long-term growth underpinned by favorable secular growth drivers and a robust and recurrent aftermarket. Our focus is clear, disciplined execution of our strategic framework and continued investment to strengthen the business for the long term. We are committed to improving return on capital by accelerating growth, both organic and inorganic, driving competitive differentiation through product innovation and digitalization of the customer's experience and further enhancing operational excellence. On the next slide, you can see how over the past six years we have delivered outstanding performance, exploiting our established position to further strengthen our global leading platform. This was achieved in an extraordinary and volatile period, whose dynamics I think you are all familiar with. We generated this progress Growth, margin and efficiency, cash generation and returns on invested capital with a clear focus on delivery and execution and judicious capital allocation align with our framework. We have grown revenues over the period at a component average growth rate of 8%, expanded adjusted EBITDA margin by more than 300 basis points and improved return on capital by more than 600 points. We have also returned around 650 million euros to shareholders. I'm proud of the team and what we have accomplished. 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 full year performance on the slide six, I will provide some highlights and then turn it over to Xavier to share more detail on the financial results. I'm proud of our strong execution in a complex context. Sales were up 7% on constant FX with growth across all regions driven by higher volumes and prices and the contribution from acquisitions. Adjusted EBITDA was up 9% year-on-year on constant FX to 501 million euros, which represents a 23% margin up year-on-year driven by higher volumes and prices and ongoing operational excellence focus. We continue to invest in the business to support long-term growth and the underlying performance remains strong. Adjusted EPS was up 14% year-on-year on constant FX. We reduced leverage by 0.2 times net debt to adjusted EBITDA on the back of our strong operating performance and FX tailwinds. I would like to remind you that we have funded three acquisitions and paid a dividend of 60 cents per share in 2025. Our balance sheet remains strong, providing strategic flexibility. And last but not least, we have expanded our return of capital by around 150 basis points versus last year, which represents our progress on margin and asset efficiency. Turning to slide seven, on the right, You see 4% volume growth in the year as we continue to gain share, together with accelerated price contribution. Revenue growth was also benefited from our volume acquisitions in Australia, Portugal, and Central Europe. FX had an overall negative effect on sales in the period. North America delivered 7% organic growth year-on-year on constant FX and perimeter, aligned with underlying sell-through trends across our customer network. This reflects continued market share gains and underscores the strength of our customer-centric model, our strategic focus on the Sunbird region, and our positioning in the mid- to high-end segments. I will discuss further later. In Europe, the positive momentum continued, resulting in approximately 4% organic growth. France continued to recover in Q4, driven by the aftermarket. ending the year flat while Spain recorded strong growth. Performance across other European markets was good in the year. Growth in the rest of the world was also strong on a constant effect and perimeter supported by double-digit growth in commercial pool. This is the beauty of our global platform. We are geographically diversified with a strong presence in key pool markets across the globe. In summary, Also, demand for new builds remained slightly negative across our markets after market activity was solid, and we continued to expand our share across core regions, both in residential and commercial pool. Next, on slide eight, as Eloy mentioned, we are executing on our strategy to deliver growth, margin expansion, and higher returns as we presented at our Capital Market Day last April. This is based on the three strategic pillars you see on the slide. which are supported by the endeavors below. I will provide further details on the progress made in 2025 on each front. Moving to slide nine, let me briefly touch on how our strategy to accelerate growth is translating into real, tangible results. In 2025, we made clear progress in strengthening our position in the markets that matter most to us, confirming that our value proposition continues to resonate with customers even in a demanding environment. We also took important steps in commercial excellence, with a particular focus on pricing. This was not just about price increases, but about better discipline, better tools, and better execution across regions. These initiatives are now embedded in the organization and will continue to contribute to more resilient performance. Our customer-centric approach and service levels were once again recognized. being named supplier of the year in the U.S. for the fifth consecutive time by leading distributors is something we are especially proud of as it reflects consistency, trust, and our commitment to long-term partnership. Finally, we continue to create value through both organic and inorganic growth. In 2025, we completed the acquisitions of BAK, APER, and a multiple-cover producer, Power Plastics. and we have also signed the agreement to acquire VarioPool, a movable floors commercial pool player in Northern Europe. These acquisitions both strengthen our portfolio and position us well in attractive segments. Next, on slide 10, let me now turn to how we are advancing competitive differentiation by transforming our organization to accelerate innovation and time to market. leveraging our global scale to deliver a customer-centered digital experience platform. In 2025, we invested 64 million euros in R&D for around 3% of sales, ensuring that innovation remains a core driver of value creation at Fluidra. A key milestone this year was the opening in Q4 of our new global R&D center in China, which will increase our agility and cost efficiency in product development. We measure how innovation translates into sales with our vitality metric. New products launched in the last five years represented 19% of total sales, demonstrating our ability to continuously renew our portfolio while maintaining high quality and service levels. We are accelerating our digital strategy. after the acquisition of Pool Tracker, rolling it out for our customers in Australia, and the platform will be launched in the US in the first half of 2026. This will improve the day-to-day experience of pool professionals, stretching customer engagement, and providing a key ingredient to our digital experience platform mentioned earlier. Overall, these achievements showed that we are not only investing in innovation, but doing so in a disciplined and focused way, turning differentiation into tangible results for our customers and returns for our investors. Moving to slide 11, let me show you examples of products to be launched in 2026. Many of these were showcased at the Atlantic City Pool Show, and customer feedback was extremely positive. Our latest innovation, Yandy Edge, reimagines how pool automation with the aim of bringing a clean, modern, intelligent smart home style experience to the backyard that not only simplifies the pool experience, but makes it enjoyable, both for the pro and the homeowner. We're also bringing this innovation mindset to other categories, such as salt re-nation. We soft-launched CellGuard last year and we expect to see accelerated sales in 2026 as the product gains increased market adoption. CellGuard's breakthrough patented sold-sale technology enhances the life of the chlorinator by automatically removing the sales landscape and industry-first. At the same time, the product enables lower cost of production to support stronger margins. Additionally, we are continually growing our portfolio of drop-in equipment lines for the aftermarket, focusing on energy efficiency, ease of installation, and competitive replacement and reliability. These products allow pool professionals to upgrade existing pools with higher performance solutions while supporting sustainability and lower operating costs for end customers. Overall, this innovation pipeline reinforces our leadership position and supports both growth and margin expansion over the medium term. Let me now turn to operational excellence on slide 12, a critical pillar of our strategy. In 2025, we deliver very tangible results with this program. First, we achieved the $100 million growth savings target under our simplification program, growing our margins over the last three years. This is a major milestone and a clear demonstration of discipline execution across procurement, manufacturing, and supply chain. Importantly, we did not stop there. During the year, we completed the development of a new efficiency plan, which is expected to generate an additional $120 million in savings over the next five years. This gives us strong confidence that operational excellence will remain a structural driver of margin improvement. We're building a more agile, cost-effective, and resilient global supply chain. At the same time, we continue to strengthen our operational platform for the future. We're investing in technology and systems, including SNOP tools and a new ERP, to unlock further efficiencies, improve visibility, and enhance decision-making across the organization. This plan builds on the strong foundation established through our previous simplification program and is fully embedded in our long-term operating model. It is designed to structurally enhance efficiency and competitiveness through three core levers. Strategic supplier management, discipline designed to value initiatives, and a more flexible, competitive, and scalable industrial footprint. will further optimize our manufacturing and sourcing network while maintaining the high service levels that our customers expect. In terms of impact, approximately 75% of the savings will come from gross margin expansion, with the remaining 25% driven by operating expense efficiencies. As shown on the chart, these benefits are expected to ramp up progressively between 2026 and 2030. providing sustained support to margin expansion over the planned period. The program involves non-recurring costs of approximately 50 million euros. We expect this to occur in the next three years. This efficiency plan reinforces our ability to expand margins, enhance our competitiveness, strengthen our cash generation and fund growth while maintaining the flexibility needed to support the business long term. With that, I will turn it over to Xavier to explain the financial results in more detail.