Technoprobe Spa U/Adr

I have now pleasure handing over to the CEO, Mr. Stefano Felici. Please, the floor to you.

Good evening and thank you for joining us. I'm with Stefano Beretta, our CFO, presenting the first half 2025 results and the guidance for the third quarter of this year. As usual, Q&A session will follow at the end of the presentation. Revenues recorded in the second quarter has been positively affected by, first of all, a very good performance coming from BIS related to the seasonality of the business. We couldn't benefit last year because of the acquisition was finalized at the end of May. Second, by the long tail of a big AI campaign started at the end of 2024. And third, buy as expected new campaign in the customer market. From a market standpoint, we confirmed trends discussed in our last call in May. About artificial intelligence. So artificial intelligence is doing very well, confirming an extremely strong trend. We are benefiting from our leading position in the testing of the logic chips. And we are assuming a progressive and steady increase in demand for advanced logic testing solutions. Comparing the performance of campaigns in the AI segments with those in the consumer segment, what we have observed is that the former trend tend to have a longer duration than the latter. This implies a contribution spread over multiple quarters as opposed to typically concentrated impact in a single quarter associated with products such as mobile or PCs. Second market is about the consumer market. So consumer exposed markets continue to show modest growth in the second quarter as well. As discussed in our previous polls, We believe the real boost will come from the adoption of AGI. Together with our clients, we are working on solutions capable of testing new products that incorporate artificial intelligence features. But we have no visibility in their decisions regarding time to market. Third and last is the automotive and industrial market. As confirmed by our clients, industrial is performing a little bit better than automotive, which is expected to have reached its bottom in the first half of the year. Now let me turn to Stefano Beretta, who will give you more colors on our numbers.

Thank you very much, Stefano, and good afternoon. Thank you for joining us. So as you will have seen in our press release, revenues in the second quarter were €168.7 million, slightly above the mid-range of our guidance, registering an increase of 21.1% compared to the same quarter of prior year, with a sequential increase of 7.3% compared to the Q1 of 2025. The gross profit increased 38.4% compared to the same period of 2024, up to 79.9 million, representing a 47.3% margin at the high end of our outlook range. And consistently, also the EBITDA increased 61.8 compared to the second quarter of 2024, up to $58.3 million, representing a remarkable 34.6% margin, well above the mid-range guided during our prior call. If we move to the year-to-date figures, total revenue were close to $326 million, with an year-on-year increase of 35.2%. Gross profit was $150.6 million, 49.5% higher compared to the same period of 2024, representing a margin of 46.2%. And finally, the EBITDA closed at 106.4 million, up 75.2% compared to the same period of 2024, representing a margin of 32.6%. And for the completeness of information and the comparison purposes, it's worth to remind that all the above figures include a new perimeter of consolidation as already anticipated by Stefano, inclusive of the contribution of DIS Tech that was acquired on May 27, 2024, then present for only one month in the same period of 2024. And just to anticipate some split of revenue, so DIS Tech contributed to Technoprop revenues And the bid for the six months ended June 2025 for approximately 74 million and 9 million, respectively. And inclusive already of approximately 2.9 million of U.S. reorganization charges, mostly related to the Santa Clara operation shutdown. Moving to this page, you can see a summary comparison between the financials at the end of the first six months, 2024 and 2025. And just to comment further, the revenue increase of 35.2% was mostly driven by the change of the perimeter, as I just mentioned. So the IAS inclusion and Santa Clara shutdown for approximately 50 million. In addition to an organic growth of 35 million, representing more than 14%, largely sustained by artificial intelligence volumes, as well as a soft recovery in the consumer segment. And all of them partially mitigated by the continuous weakness in automotive and industry. If we want to look at the revenues as expected at the cost and currency, so using the same FX rate of the RFE 2024, would have been approximately 1.3 million higher than the reported revenue, meaning less than 1% unfavorable impact. In fact, the six-month average Euro-USD rate for the semester was approximately 1.09 compared to 1.08 in half-year 24. On a gross profit level, the increase in the margin from 41.8 to 46.2 was the result of the recovery efficiency in our production processes, together with many operating leverage that our business model allows us when certain production thresholds are exceeded. All of these impacts have more than compensated the increase of the depreciation following the great investments in the fixed assets made during prior year to expand our capacity and increase our automation. If you look at the constant currency impact, the gross profit would have been approximately 1 million higher. Consistently, also the EBITDA reflected the same trend, showing a significant increase in the margin from 25 to 32.6%, and benefiting also from the savings attributable to the U.S. organization, and even including a negative forex impact for approximately 1.5 million. Finally, just a look at the net financial position that is down for approximately 14 million euro in the semester, mainly due to 69 million generated through the operating activities, more than offset by 28 million absorbed by the investment of the period in CAPEX, 20 million absorbed by the acquisition of a remaining stake in EUA that now is 100% owned, $7 million absorbed by the acquisition of a minority stake in Indostar Service, a Taiwanese company listed in the emerging market, where we have currently slightly more than 9% stake. And $29 million theoretically absorbed by the unrealized FX impact on the foreign currency bank accounts we currently have, denominated in currency different from Europe. If we move to the next page, please. So as already said, during our latest Capital Market Day and during also the latest press release, we confirm once again the trajectory for organic mid-single-digit growth in our reference market on a yearly basis, together with a consistent strengthening of profitability and confirming the volumes and market share we currently have. That said, third quarter of the year is expected to show the following figures. So also significantly impacted by a continued deterioration of the US dollar against the euro. So revenue to be about 137 million plus minus 3%, gross margin in the range of 41.2% plus minus 2%, and the bidda margin in the range of 28.2% plus minus 2%. So thanks everyone for your attention. Now we can move to the Q&A session.