Sonae, SGPS, S.A.

Good afternoon and welcome to the Sinai 9 Months 2025 Results Conference Call. The call will be structured in two parts. First, a presentation by the Sinai Group Management Team. And afterwards, there will be a Q&A session. During this session, you may ask question in two ways, by submitting a written question in the box below the player, or by joining the conference call and dial pound key 5 on your telephone keypad to enter the queue. I will now hand over to João Delores, CFO. Sir, please go ahead.

Thank you. Good afternoon, everyone, and thank you for joining us for SANAE's results presentation for the first nine months of 2025. Besides myself and the investor relations team, we have on the call with us Cristina Novaes from BrightPixel, Fernando Wanzler from MC, Paul Simonis from Vorten, and Miguel Moreira from Sierra. I'll start with a few highlights from our portfolio this quarter. In July, we completed the sale of our Maw and Zippy fashion retail banners following the agreement reached in May. This transaction reflects our ongoing commitment to active portfolio management and disciplined capital allocation. At the same time, we're seeing the successful integration of new businesses and the consolidation of key partnerships, which are producing very promising results. we are witnessing a stronger, more connected portfolio, unlocking new opportunities for collaboration across the group. A few highlights from the quarter include new cross-loyalty initiatives, which help us deepen our understanding of consumers and ultimately improve the value we offer to customers. For instance, Vorten launched its new loyalty program, Vorten Life, connected to the continent ecosystem, allowing customers to earn and redeem balance on their Vorten purchases. Our financial services joint venture, Universo, relaunched its credit card, now called Universo Plus, offering new functionalities and extra cash back at Continent. And finally, Musti and MC have been working closely together, most notably with Musti's own pet food brand now available in continent stores, and also through several collaboration initiatives in areas such as logistics, food safety, and risk management, among others. These are just a few examples of cross-business synergies and collaboration initiatives that we have launched in recent weeks and months. let's move on to our results by business starting with mc in grocery continents sustained its market share gains reinforcing its position as the leading grocery retailer in portugal like for like sales grew to nine percent in the third quarter mainly driven by the strong volumes performance Grocery underlying EBITDA margin improved by 110 basis points year-on-year to 11.2% as sales increases and continued efficiency gains offset ongoing cost inflation pressures. In health, wellness, and beauty, our Wells, Druni, and NNL banners continue to strengthen their leadership position in Iberia. Topline growth was again solid this quarter, up 12% year-on-year or 7% on a like-for-like basis, supported by strong performances from Druni and Wells in particular, as well as continued network expansion. The underlying EBITDA margin improved by 50 basis points to 14.3%, mainly reflecting Druni's stronger profitability and greater operational efficiency. Druni continued to expand at a quick pace, having opened its first store in Portugal, and we expect more stores to come in this geography in the next few months. So overall, MC delivered revenue growth of 10%, reaching 2.3 billion euros in the third quarter this year. Underlying EBITDA margin increased by 100 basis points year-on-year to 10.8%, driven by stronger performance across both the grocery and health, wellness, and beauty segments. Regarding leverage, total net debt to EBITDA decreased to 2.5 times at the end of September, underpinned by the solid cashflow generation in the period. As for Vorten, the company posted turnover growth of 7.9% year-on-year in the third quarter, supported by a solid like-for-like increase of 6.9%. Growth was driven mainly by higher volumes in core categories, such as electronics and home appliances, along with continued momentum in services and new product categories. The online channel also performed exceptionally well, accounting for 19% of total turnover in the quarter. the company continued to increase its market share across all channels with a quite solid gross margin display. Underlying EBITDA reached 21 million euros and remained broadly stable year on year. Nevertheless, the margin stood at 5.6% year on year, 5.6% down from last year, but showing a positive trend in terms of recovery. The cost base remained under pressure from higher logistics and strategic investments, which we expect to bring down to more normalized levels in the coming quarters. Now, looking at Musti, the company released its quarterly results yesterday. In this period, Musti further strengthened its leadership position across both its core Nordic markets and the newer Baltic region, benefiting from improving market conditions. Turnover grew 14%, supported by the consolidation of Pet City and also solid life-for-life performances across the Nordics, with Norway and Finland performing particularly well. Gross margin improved year on year in the third quarter, supported by a more favorable sales mix, particularly a higher share of own brand food production. Underlying EBITDA increased to 16.9 million in the third quarter of 25, although the underlying EBITDA margin comparison versus last year remains impacted by ongoing investments in growth and higher operating costs. We remain confident that Q4 will see a continued positive trend in terms of growth, and also in terms of evolution of a BPA margin. Moving to Sierra, our real estate business. The key highlight this quarter in strategic terms was the acquisition of Unibel Rodamco's real estate management division in October, which positioned Sierra as the second largest shopping center property manager in Germany. Sierra's European shopping center portfolio continued to perform well, with tenant sales up 6% on a like-for-like basis, near full occupancy in our centers and robust grant collections. The company also advanced key strategic expansions and refurbishments in its shopping centers, unlocking additional growth potential while continuing to actively manage its portfolio through capital recycling initiatives aimed at enhancing returns. Sierra's net results rose to 21 million euros in the third quarter of this year, up 4.7% year on year, supported by a strong operational performance across both the shopping center portfolio and the services activity, contributing to an NAV of 1.2 billion euros at the end of the period, after dividends paid to the shareholder. Regarding Nosh, the company already reported its results to the markets, delivering solid profitability growth due to continued focus on operational excellence, despite a more pressured top line in telco B2C revenues. Consolidated revenues in the quarter were also impacted by a softer performance in the cinema and audiovisuals business following last year's record blockbuster releases, which included the most watched film ever in Portugal. In any case, consolidated EBITDA increased by 2.7%, supported by robust performances across both the telco and IT segments. In SunEyes consolidated accounts, NOSH equity method results increased by 32% year-on-year, reflecting the company's solid operational execution. And finally, BrightPixel, with 55 companies in the portfolio, invested in five new companies and sustained a solid pace of capital recycling. NAV reached €341 million at the end of the period, and cash invested 240 million, implying a potential cash-on-cash return of almost 1.5 times in the existing portfolio. Moving on to the consolidated figures. Overall, our turnover grew 8% year-on-year to 2.9 billion in the third quarter, driven by the strong performances of MC, Vartan, and Musti, which more than offset the deconsolidation of Malt and Zippy fashion banners. On a comparable basis, excluding the consolidation of Pet City and also the exits of Mall and Zippy, consolidated turnover posted a solid 10% year-on-year increase. Underlying EBITDA grew by 17% year-on-year, mainly reflecting the stronger operating performance AMC. And on a comparable basis, it actually increased by 20% versus last year. Overall, EBITDA increased by 13%, supported by the solid underlying EBITDA performance and higher contributions from equity-accounted businesses, particularly Notch. Net result group share increased to 98 million euros, up 34% versus last year, driven by the improved operational performance across our portfolio companies and also lower financing costs, reflecting the reduction in net debt and also in the average cost of debt. We made progress in our deleveraging path with consolidated net debt standing at 1.8 billion euros at the end of September, down 45 million euros year on year, driven by the evolution of operational cash flow. The holding LTV stood at 13.6% at the end of September, down from 15% last year, as our balance sheet remains strong with an average debt maturity of 3.4 years and a steady decline in financing costs driven by lower net debts and a lower average cost of debt as well. As a final note, our net asset value grew 5.7% quarter on quarter and surpassed 5 billion euros at the end of September. This positive evolution was mostly fueled by improved valuations of MC and Sierra, which offset the softened performance of the mostly stock price. On a per share basis, NAV reached 2.58 euros per share, up by 5.7%, with the share price trading at a 48 discount to NAV at the end of September, after the steady increase in share price in recent months. This is all for now. Thank you. And you can now open the session to Q&A.

If you wish to ask a question, you may do so by submitting a written question in the box below the player or click on the blue hand button on the audio player to ask orally. You can also ask a question via the conference call and dial pound key 5 on your telephone keypad to enter the queue. The next question comes from Jose Rito from CaixaBank. Please go ahead.