Gestamp Automocion S A

Well, good evening and thank you for joining HESAM first half 2026 results presentation. Thank you for joining, especially in this very busy evening for you. This call will be led by our executive chairman, Mr. Francisco Riberas. I'm delighted to join him today and honored to participate in my first earnings call as CFO of the company. As usual, let me refer you to the disclaimer on the slide number two of this presentation and also as usual at the end of the call, We will open the floor for our Q&A session. Now let me hand over the call to our executive chairman.

Okay, good afternoon and thanks for attending our call in which we will be presenting our first half results. First of all, again, in a very challenging scenario, Gestam has been able to deliver a very solid result in the first half of 2026. With auto manufacturing decreasing from H1 2025, especially in China, Our revenues at FX Customs have increased by 2.9% in Q2 versus Q2 2025 and by 1.3% in H1 versus H1 2025. During the first half of the year, our EBITDA has reached 651 million euros, improving our EBITDA margin and reaching Exclusion Phoenix Plan cost at an 11.6% margin in Q2 and an 11.2% in H1 better than in H1 2025. and our free cash flow generation in the period has reached, excluding Fenix, 86 million euros with a very solid cash flow conversion. So, a strength result which is supporting our full year 26 visibility. If we go to the market, and as already stated, the light vehicle production has suffered during this first half of the year. In fact, in H1 2026, in the stand footprint, the light vehicle manufacturing has reached and many more. Thank you. Thank you very much. by increasing exports. So moving to slide six, in a market declining by 0.9%, Hestan revenues at FX Costan have been able to improve by 1.3%, which means an outperformance of 2.1 percentage points versus the market. In Western Europe and North America, we have registered a moderate outperformance. In Eastern Europe in line with previous year we have a relevant outperformance of 9.3 percentage points while some underperformance in Mercosur due to some specific programs and also a limited underperformance in Asia driven by China but with a very solid performance in other Asian countries such as India. So very solid revenues in H1 of close to 5.8 billion euros which have been supported by a healthy organic growth in our auto sales outperforming the market and also a good recovery of sales in HESCRA. But they're still impacted by FX. In this sense, in H1 2026 our revenues have been impacted negatively by 157 million and in the second half we expect that impact to be lower. SESAMP is very focused in enhancing our profitability in a market with low volumes. In H1 2026, our EBITDA margin in the auto business has reached 11.4%, with lower sales than in H1 2025. Also, a relevant margin increase from H1 2024, EBITDA margin of 10.8%, and the same EBITDA margin as our record H1 in 2023 with 445 million euros logo sales. And we have been able to deliver those good results due to all efforts that we are deploying in different kinds of cost reduction initiatives, implementing flexibility and restructuring measures with all kinds of constructive customer negotiations and with a very good execution on our Phoenix plan in North America. So H1 results, which is showing that Gestam is on track to reach at our full year 26 guidance of more than 11.9% EBITDA margin. In terms of Phoenix, we are already in the third and last year of our plan. Even if the market environment in terms of volumes is worse than the one considered when we elaborate the plan, We are clearly on track to achieve the target of more than 10% EBITDA margin in full year 2026. In fact, in H1 2026, light vehicle production volumes in North America have been flat compared with previous year with a negative performance in domestic and market. In H1 2026, we have incurred in around 50% of the total extraordinary impact forecasted for the year. and in Q2, we have been able to improve our EBITDA margin from Q1 and already reaching 8.8%. In scrap, following a difficult second half of 2025, during H1, scrap performance has improved substantially. Part of this improvement comes from scrap prices recovery in 2026 in the different global markets, but also thanks to an increase of the amount of tons processed. Scrap revenues in Q2 have reached 161 million euros, 2.4 increased from Q1 revenues, and in terms of profitability, EBIT in Q2 reaching already 12.2 million euros, a 7.6% EBIT margin, improving the 6.4 margin in Q1. So very solid figures in H1, which provides also a very good visibility to being able to achieve full year targets. And now with this, now I hand it over to Ana.

Thank you, Paco. Well, as we have previously explained, this first half has been affected by a negative forex evolution, particularly during Q1, and also a tough comparison base coming from the second Q2025, which was particularly struck. We have achieved revenues of €5,794,000,000 and EBITDA of €640,000,000, leading to a margin of 11.1%. This is a 10 BIPs improvement on a reported basis, excluding the 11 million of Phoenix costs, EBITDA will be standing at 651 million euros, which is pretty much flat to last year, and we have profitability of 11.2%, already improving 10 BIPs again, and providing good visibility to achieve the guidance provided for full year. EBIT has reached €265 million, showing some margin deterioration year-on-year, explained by the Forex impact and the write-downs booked in Q1, as we will recall later. Net profit for the first half is back to €100 million, reaching €110 million, and free cash flow generation has reached €65 million, or €86 million, if excluding extraordinary first costs. As a result, net debt is falling below $2 billion, standing at $1,771,000,000. As I said, and turning into slide number 13, this one has been affected by two extraordinary impacts at net profit level. The $15 million assets write-down related to the EV realignment strategy that the group started in fourth quarter last year. and 23 million positive impact coming from IFRS 9 accounting on our financial expenses related to the extension of the 1.7 billion syndicated loan facility agreed in January this year. This has a net six million impact at net profit and will let, but excluding these extraordinary costs, will have a net profit of around 104 million euros, which is more in line with the net profit levels Achieve in previous years and representing a 40% increase on a year-on-year basis. Looking at the different regions on slide 14, the key contributors to revenue performance this first half has been Eastern Europe, Mercosur, and Headstrap, with EBITDA also supported by our North America performance. In Western Europe, revenue excluding a negative forex evolution from UK would have broke by less than the 1.3% we are reporting. Performance in the region is pretty much affected by a weak market momentum in key countries such as Germany or France and within this context the stamp continues to be focused on cost control and improving efficiency to offset the limited revenue growth while preserving margins and as a result we are reaching a profitability which is standing in those letters of 10 percent which is only 30 bits below last year and which is a good proof of the success of our strategy. Eastern Europe Revenues remains a solid region for GESTAM with flat organic growth but preserving best-in-class profitability with an EBITDA margin above 15%. Not much to add in North America as Paco has already given you the details on Phoenix and you should be already aware improvement in this region is one of our key levers to deliver on our guidance for the year. As for Mercosur, revenues have grown 2%, with Brazil growing above, but Argentina a bit weaker. Thanks to the restructuring done last year, as we said, and the improvement of rating leverage in Brazil, and thanks also to an easier comparison facing in Brazil, profitability is back to more normalized levels in the region of 13%. Lastly, in the auto business in Asia, revenue performance has been affected by a weak China market and forex, essentially. Markets like India are conversely growing above pretty much a double digit. Despite a lack of revenue growth and similar to what we are doing in other regions, we continue to be focused on cost competitiveness and to this end we have implemented different measures in this region to remain with a profitability above 14%, which is the second best in class for the group despite the top market momentum. And lastly, on GESCRAP, as we have previously seen, this first half has been affected by the integration of Industria Lopez-Foreano, capital with sustained price increases, as well as some volume growth, as our chairman has previously explained. And all this has led to double-digit revenue and EBITDA growth, which shows good visibility to achieve the target we have given for a full year. So overall, Hav1 delivered very solid results demonstrating the company's ability to remain cost-competitive and preserve a strong financial position despite a challenging market environment. Moving to our precast flow generation on slide 15, NETEF has dropped by almost 50 million thanks to a 65 million of precast flow generation in the quarter, sorry, in the period. Despite limited EBITDA growth, lower CAPEX and a positive working capital evolution after some extraordinary negative impact that we have during Q1, all this has allowed Gestamp to deliver a very solid pre-cash flow regeneration in the period, excluding the 20 million of FenixCos invested in the period, which more or less are 50% of its 50% CAPEX. Free cash flow would have amount to 86 million euros. It is important to say that group operating cash flow conversion has a 36% in first half, which as I say is the result of also a lower capex invested on absolute terms, which is providing good visibility to achieve the target and our market commitments of being less capital intensive going forward. And lastly, NETDEV has stood at 1,771,000,000 euros, the lowest NETDEV figure for our first half and below full year 2025 as we have previously seen. This reduction in terms of NETDEV despite the limited EBITDA growth has driven us to report a leverage of 1.4, a healthy balance sheet which gives us flexibility and optionality within a market with a market of limited visibility as of today. This is all on my side and I will hand over the call to our channel.