Piaggio & C. SpA

Good afternoon, this is the Coruscall Conference Operator. Welcome and thank you for joining the Piaggio First Quarter 2026 Financial Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Raffaele Lupotto, Investor Relations of Piaggio. Please go ahead.

Thank you very much. Hello, everyone, and welcome to Piaggio Group's first quarter of 2026 Financial Results Conference Call. The conference call today will be hosted by Alessandra Simonotto, Piaggio Group CFO, and myself. The slides supported in today's presentation are available on Piaggio Group website. Before we begin, I would like to remind you that during today's conference call, we may use forward-looking statements based on Piaggio's current expectations and projections about future events. By their nature, these statements are subject to risks, uncertainties, and other factors that could cause after-results. to differ materially from those expressed or implied. These factors are discussed in the Safe Harbor Statement on page two of today's presentation. With that, I would like to turn the call over to Alessandra.

Good afternoon to everybody and welcome to our conference call. After what you have already read in our presentation and in our press release, I should like to point only four things about our results on this first quarter. The first one, volume and essays. As you have already read, the volumes of these three months of 2026 are growing up versus the first quarter of 2025. It is only 2,000 vehicles, yes, but it is the beginning of a different moving of the market and the consumer confidence on our product. The Indian market has had very good results in this period. The APAC market is in line on our expectation. On the EMEA market, we have done a different choice because we have preferred the not to push up too much on our dealers, weighting the new products that are arriving in the market in April, May, and June, on top of that, the SGT 400 and the new Vespas. About the net sales, as you already read, we lost the 7.8%, but the effect is mostly connected to the Forex. As you know, our region, India, APAC, U.S., are all connected to the forex or the USD. And so having in mind what the U.S. dollar has done in this period, we have this negative effect on forex. This is not something connected on the sales or on promotion and bonuses. And so it's an healthy net sales result. The second one is the cash flow. As you've seen, in the first quarter of 2026, we have absorbed only 19 million euros against the 58 of last year in the same period. As you know, because a lot of you is in charge of analysis of Piaggio for a long time, The first quarter of the year is normally the period in which we absorb the maximum part of the cash flow because we are buying components for the second and third quarter and we have not such a lot of quantity of sales and so of revenue and credit and cash in. So in this period, having this result for us is a very good result because we put in place from the beginning of September a lot of activities to contain inventory, first of all, and to get better results on trade receivables. So if you take a look at the results on trade receivables and inventory, you can see that we have done a good job, in my view, on this part, very important, of our financial statements. The first thing is that in the EBIT results of this quarter, we have two things that are one of versus what happened in the first quarter on 2025. The first one are tariffs. In the first quarter 2025, we do not have tariffs in U.S., while in the first quarter 2026, in this EBIT that you see in our closure, we have 1.5 million euros of impact for the new tariffs on the U.S. market. The second one is that we have tariffs depreciate a land in India after the closing of an agreement, on the basis of the agreement we had in this period. So these two different things, that more or less are 3 million euro, have a negative impact on our EBIT. Without this, more or less, the EBIT at the end of the period is equal in terms of percentage but also in terms of absolute results to be one we had in 2025. The first thing is the April results. We have closed two years ago the month of April in all our markets. We had the first release of volume and revenues and we have seen in April for all the markets a good result in terms of volume and revenues versus what happened in 2025. And it is in line also with our forecast and our budget. So we see the beginning of the second quarter in line with our expectation and with a better result on what happened last year. On top of this, I think that it is helpful for every one of you to open the Q&A session and answer to your question. Thank you.