Grupo Rotoplas S A B

Good morning, and welcome to Grupo Rotoplas' results conference call. Please note that today's call is being recorded, and all participants are currently in listen-only mode to prevent background noise. The host will open the floor for questions later. Today's discussion contains forward-looking statements. These statements are based on the environment as we currently see it, and as such there may be certain risk and uncertainty associated with such statements. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially. The company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, further events or otherwise. Good morning.

Hello everyone and thank you for joining us today. Before I walk you through the quarter, I want to take a step back. Almost five decades ago, Rotoplas began with a simple purpose, to improve people's lives through better access to water. That purpose is the reason we exist today, and it is the lens through which we make every decision. In a demanding environment, returning to those roots, being a company that creates real, This was another quarter of steady sequential progress, with a levered top-line growth, double-digit EBITDA expansion, margin improvement, and a meaningful reduction in leverage, all while continuing to invest in the business that will shape the Rotoplas Andrés will walk you through the numbers in detail, but the message is simple. The recovery we have been building is taking hold, and it is broadening across our geographies. We are not yet where we want to be, but we are moving in the right direction. We achieved these results despite currency volatility and higher raw material costs. That speaks to something more structural, our ability to execute. Pricing discipline, innovation, cost management, and capital allocation are becoming competitive advantages that allow us to perform even in challenging environments. We strengthened our financial position, leverage came down to 2.3 times, cash generation remained strong, and we refinanced our sustainability bond, extending our maturity profile and giving us greater flexibility to invest for the long term. This is a solid foundation we have been patiently building. Let me now share with you how we advanced on our four strategic priorities this quarter. Our first priority is profitable growth and core expansion. During the quarter, we continued to grow while maintaining disciplined pricing across our portfolio, protecting margins despite higher resin and freight costs. In Mexico, category-level demand was mixed, but our commercial execution more than compensated. The progress we made reflects the strength of the capabilities we have been building over the past several years. At the same time, we continue strengthening our portfolio across the entire water cycle by embedding technology into the products that made us market leaders. When we think about water, we think about how we can continue improving every step of the cycle of our customers. Today, our storage solutions incorporate smart level sensors, our smart pump improves water pressure and performance inside the home, and Bedia completes its cycle through water purification. Together, these innovations allow us to better serve our customers while continuing to build on the businesses that have defined Rotoplas since the beginning. Robots like the Vertical Tank and Smart Pump are still in the early stages of adoption, but we're encouraged by the progress we're seeing. They are already improving our commercial needs, expanding the markets we can serve, and helping us reach new customers. For example, our new Vertical Tank is compact enough to fit inside a residential elevator. A small detail, but it's opening up multifamily and urban apartment buildings as new use cases For a product category that used to be limited to houses with space for a rooftop tank. Our smart pump is also creating new opportunities to offer more integrated water solutions inside the home. For us, innovation is about continuing to improve the products our customers already trust and making them even more valuable over time. But a better product only creates value when people really understand its benefits. and know how to install it. So we stepped up the work around adoption, sharing our products more actively, including a smart pump demonstration on social media, which I'd like to share with you now.

Hola, buenas tardes, me llamo José Manuel Alcántara, soy instalador y hoy nos enfrentamos al tema de cambiar este hidroneumático. Se decidió actualizarlo a esta nueva bomba de la marca Rotoplas. Miren la diferencia de tamaño. Andrés Pliego Rivero Borell, Mariana Fernandez, José Luis Mantecón García, Mauricio Romero