Gestamp Automocion S A

Good evening and thank you very much for taking the time to attend the first quarter results of Gestamp. I am Ana Fuentes, the money and IR director. Before we begin, let me refer you to the disclaimer on slide number two of this presentation, which has been posted on our website and sets out the legal framework under which this presentation must be considered. The conference call will be led by our executive chairman, Mr. Francisco Rivera, and our CFO, Mr. Ignacio Mosquera. As usual, at the end of the conference call, we will open the floor for Q&A session. Now let me hand the call, let me hand the call over to our executive chair.

Good afternoon and thanks for attending our call. In Q1, 2026, the key highlights for us is in terms of revenues. We have a 2.8 billion revenues, which is flat compared with Q1, 2025, at effects constant and clearly outperforming the market. In this period, we had a solid EBITDA in this first quarter of 307 million euros, which is 10.8% margin in the quarter, which means 52 basic points better than Q1 2025. And of course, in this quarter also, keep on delivering on Phoenix Plan, which is clearly giving us the message that we are right on track, and even if the market in North America remains lower, Referring to the market, global vehicle manufacturing in Q1 has been weak, reaching 21.5 million units, which is 3.4% below volumes in Q1 2025, but similar to the volumes in Q1 2024. Even if vehicle manufacturing in this quarter has been reduced in North America and also in Western Europe by 2%, This quarter shows a very significant drop in China, of close to 10%, which is driven mainly by lower domestic sales in that market. This quarter, the stamp sales have outperformed the market by 2.3%, as far as the market in our footprint has gone down by 2.6%, while the stamp sales at the fixed cost stamp has been almost flat compared with Q1 2025. by different geographies in Europe. Our solid sales in Eastern Europe has offset and slight underperformance in Western Europe. We have done a slight outperformance in North America. In Mercosur, our sales have underperformed the market due to lower volumes in some of our projects. And in Asia, we have done better than the market which has been a little bit behind. If we go to slide number 7, in terms of our reported revenues in Q1 2026, we have reached 2,834 million euros, which means a decrease of 5% compared with Q1 2025. Most of this decrease is due to a negative forex impact of 137 million, which is due to the revaluation of euro versus our main currency in Q1 2026 versus Q1 2025. with a slight negative impact coming from the scrap prices, which is leading to this minus 0.3% organic growth in the quarter, despite clearly outperforming the market. Even if sales are down, and stand out of business profitability has increased. In fact, with 5% less sales in the quarter, our EBITDA margin has grown from 10.4% in Q1, 2025, to 11% in Q126. We have been able to achieve this improvement in a declining market due to an implementation of many flexibility and efficiency measures, and also thanks to the large improvement coming from the Phoenix Clan in North America. So following a positive quarter, we are now fully committed to achieve a full year 26 EBITDA margin of more than 11.9% in our auto business, which was the guidance that we provided some months ago. As already mentioned, we keep delivering on the Phoenix plan as a key priority for our staff. Even if the vehicle manufacturing volumes in this quarter, both in US and in Mexico, have been below expectations, the editor margin of our operations in North America has increased from 6.4% in Q125 to 7.1% in Q1, 2026. Each quarter, we are improving and consolidating a positive trend that is gonna lead us to achieve the commitment for full year 2026 of more than 10% EBITDA match. In the slide 10 of the scrap, following a negative trend in scrap prices during 2025, in Q1, 2026, scrap prices and mainly Europe, have increased. Comparing with Q4, 2025, the revenues of the stamp in Q1, 2026 has increased by close to 12%, and our EBIT margin has improved from 3.9% to 6.4%. We expect an increasing trend on the scrap prices during 2026, which should help scrap profitability for the year. And now with this, I hand it over to Ignacio Mosquera.

Thank you, Kako, and good evening to everyone. Moving on to slide 12. Let's have a closer look to our financial performance in the first quarter of 2026. We have reached revenues of $2,834,000,000, which entails a 5% decrease when compared to the $2,983,000,000 from Q1 2025. Revenues continue to be strongly impacted by forest impact in most of our geographies, while organic growth has been almost flat. In terms of EBITDA, we have generated $303 million in Q1, 2026, meaning a 10.7% margin. Excluding Phoenix Impact, EBITDA in absolute terms would amount to $307 million, therefore an EBITDA margin of 10.8%. We have achieved a margin expansion of 60 basis points, quarter on quarter, or 50 basis points excluding Phoenix Impact. Imported EBIT decreased by 5% year-on-year to $114 million, with an EBIT margin flat year-on-year of 4%, as a result of higher one-off amortizations in the period, which I will explain in the following slide. Net income in the quarter has been $49 million that compares to the $27 million reported in the first quarter of 2025, driven mostly by a strong EBITDA, one-off financial income, and lower exchange losses. As for free cash flow, we have a negative free cash flow generation in the quarter versus last year due to the normal seasonality and less factoring intensity. Net debt has closed the quarter in 1,977,000,000, reducing net debt in 242,000,000 compared to the first quarter of 2025. To sum up, we continue to demonstrate our ability to perform strongly and improve our profitability while retaining balance sheet discipline in difficult and market conditions. If we now move to slide 13, we will detail the one-off impacts that have led to a strong net income improvement. On a like-for-like basis, net income has improved by 62% year-on-year from 27 to 43 million euros. In addition, net income has experienced a total of positive 6 million one-offs, which entail a 15 million euro write-down linked to our electric vehicle programs, more than offset with a 23 million financial income accounting impact from the syndicated facility agreement amend and extend, which we announced in Q4 and have closed in Q1 2026. As a result, there is an 8 million positive impact, which results in a net of 6 million euros impact after tax. If we now move to slide number 14, we can see the performance by region on a year-on-year basis. Looking at each region in detail, revenues in Western Europe have decreased by 4% year-on-year in 2026 to around 1 billion. Performance in the region has been affected mainly by volume pressure in the period. In terms of EBITDA, it reached 98 million, and an EBITDA margin stood at 9.6% in the period, improving by 90 basis points from the 8.7 reported in 2025. Improvement in the period is derived from flexibility measures that we're applying, as well as one-off restructuring costs that we had in Q1 2025. In Eastern Europe, the performance in Q1 2026 has been very solid, proving again our strong positioning in the region. On a reported basis, during Q1 2026, revenues have decreased year-on-year by 2.8%, up to levels of $494 million, and the beta levels have decreased in $5 million to $75 million, in a context where the region has been strongly impacted by Forex this year. The beta margin stood at a solid top 15.2%, in line with the profitability reported for full year 2025 and being our strongest region. The profitability continues to reflect the project mix, highlighting the strong project ramp-ups in Turkey and the good evolution of the business in the remaining countries. In Europe overall, considering both regions as a whole, we continue to improve our profitability, partly due to the shift in the mix to Eastern Europe. In North America, Phoenix's plan continues to show signs of improvements in the underlying operations, with a good EBITDA margin evolution in Q1 2026, despite underlying end-market conditions and debt tax impact. Our revenues have decreased by 5.7% year-on-year, while EBITDA has increased by 4% if we exclude Phoenix's impact of 3.4 million in Q1, 2026. This higher EBITDA in absolute terms leads to an EBITDA margin of 7.1%, improving last year's profitability by 70 basis points. As you all know, turning around the operations in North America to improve our market position and profitability is at the top of our priorities, and these results set the path to achieve the target of a 10% margin by end of the year. In Mercosur, revenues have decreased by 4.4% due to customer and project needs. While EBITDA has increased by 13.4% year on year, leading to 11.5% EBITDA margin versus 9.6% last year. We have been able to improve profitability in 240 basis points thanks to the flexibility measures we're implementing in the region, as well as restructuring costs that we experienced in Q1 2025. In Asia, reported revenues have decreased by 9.5% year-on-year in Q1 2026 to 424 million, within a complex and very competitive market environment. However, our performance continues to evolve positively in these market conditions, being able to improve a slightly profitability year-on-year. Our approach continues to be focusing on premium products in the region, and we keep on working to gain positioning in this region, maintaining strong levels of profitability. Asia region remains a great opportunity for us, not only China, where we continue to develop high-value-added products, but also India, where we have undertaken new projects with a strong performance. Finally, Hescraft has seen revenues decreasing by 2.5% year-on-year to $157 million, as a result of a comparable relatively strong quarter in Q1 2025. The bid-time absolute terms have increased by $1 million, reaching $30 million in the period. As Pat explained earlier, improving market conditions show the path to achieve your end targets for the scrap. Overall, this quarter, we have seen once again that our unique business model and geographic diversification has supported and driven our performance in a period marked by volume volatility and lack of growth. Turning to slide 15, we see where we started 2026 with a net debt of $1,177,000,000. which is $156 million above the $1,821,000 reported in December 2025. This $156 million increase includes a dividend payment of $31 million and a positive $18 million impact of Forex in the quarter. The company has generated a negative free cash flow of $142 million, excluding extraordinary Phoenix costs in the first quarter. being negatively impacted by our traditional business seasonality and less factor in intensity. As mentioned in our Q4 results call this year, we have tried to achieve a group operating cash flow conversion of 35%. For Q1, the reported net rate is 33%. Therefore, reiterating our commitment to achieve the target at the end of the year. Moving to slide 16, we ended March 2025 with a net financial debt of $1 billion which implies a net debt to EBITDA ratio of 1.5 times. This is the lowest debt level and leverage radius since the IPO of the company for the first quarter of the year, showing our strong commitment to be on our 1 to 1.5 net debt to EBITDA target. Our priority is to preserve our financial strength, and we remain disciplined over leverage in absolute and relative terms. Finally, in slide 17, we show our dividend payment in 2026 against 2025 full year net income. A total of $0.08 per share will be distributed in two payments, an interim dividend that we have already paid in January 2026, and a complementary dividend approved at today's general shareholders meeting that will be paid next July. The standard maintains a clear shareholder remuneration policy within a stable dividend payout of 30% of reported net profit in line with the target that was announced on 2023 Capital Markets Day for the period 2023 to 2027. Our long-term strategy is focused on generating value for shareholders. Thank you all, and now I hand over the presentation to Paco for the outlook and final remarks.