Technoprobe Spa U/Adr

Good evening and thank you for joining us. Together with Stefano Beretta, our CFO, I will go through 2025 nine-month results and guidance for the last quarter of this year. As usual, Q&A session will follow at the end of the presentation. The results achieved in the third quarter are aligned with the guidance shared in August and on a sequential basis have been affected by, first, The upside coming from the consumer campaign and the long tail of the AI campaign we had in the second quarter. Second, the lower contribution from BIS, whose results were in line with first quarter 2025 for seasonality reason. Looking at different market segments, First, the artificial intelligence is performing exceptionally well, confirming an extremely strong trend through the last quarter of 2025 and in 2026. We maintain our leading position in testing lodging chips this year and we expect to confirm this positioning also next year. Second, the consumer exposed markets continue to show modest growth also in the third quarter As discussed in our previous call, we believe the real boost will come from the adoption of AGI. Third, the automotive and industrial segments confirm a weaker performance with industrial performing slightly better than automotive. This trend should improve in the last quarter of the year as a result of a stabilization in automotive markets. Trends rose in the last month of the year make us confident that we will exceed the growth target for 2025, both in terms of revenues and margins, introducing a very positive outlook for 2026, particularly for the first half. We have been asked by our clients to support the high growth they expect for the next year, and we are projecting a manufacturing expansion plan to double the capacity in the next 24 months. Now I will turn it over to Stefano Beretta, who will provide more details on our figures.

Good evening and thank you for joining us. As you may have read in our press release, revenues in the third quarter were 140.7 million euro, close to the high end of our guidance. and registering a decrease of 3.5% compared to the same quarter of prior year, with a sequential decrease of 16.6% compared to the second quarter of 2025. It's worth to remind you that on a sequential base, the registered decrease is related to an important campaign that entirely came in the second quarter of 2025. together with the cyclicality of the EIS business, usually showing peaks in the first half of the year. Gross profit decreased at 4.6%, compared to the same period of 2024, for an amount of 56.7 million euro, representing a 40.3% margin. On the contrary, the EBITDA increased at 15%, compared to the third quarter of 2024, up to €39.8 million, representing a 28.2% margin at the mid-range guided during our prior call. Moving to the year-to-date figures, total revenues were close to €467 million, with an year-on-year increase of 20.6%. Gross profit was €207.3 million, 29.5% higher compared to the same period of 2024, and representing a margin of 44.4%. EBITDA closed at 146.1 million, up 53.3% compared to the same period of 2024, and representing a margin of 31.3%. For the completeness of information and comparison purposes, it's worth to remind that all the above figures include a new perimeter of consolidation, inclusive of the contribution of the AES-TEC that was acquired on May 27, 2024, then present for four months only in the same period of 2024. And if I may add, so the AES-TEC contributed to Technoprobe's revenue and the BIDA for the nine months ended September 30, 2025, for $104.7 million and $13.2 million, respectively, and inclusive of approximately $3 million of US organization charges related to the Santa Clara operation shutdown. On this page, you can see a summary comparison between the financials at the end of the nine months, 2024 and 2025. Just to comment that further revenue year-on-year increase was mostly driven by the change of perimeters, as already mentioned, including NDIS inclusion partially upset by Santa Clara shutdown for approximately 48 million, in addition to an organic growth of 44 million, largely sustained by artificial intelligence volumes, as well as a soft recovery of the consumer segment, all of them partially mitigated by the weakness in automotive and industrial. The mentioned growth components have been partially offset, in addition, by the FX headwind for approximately €12.5 million. In fact, the revenues expressed at the cost of currency, so using the same FX rate of the 9-month 2024, would have been approximately €12.5 million higher than reported revenues. meaning a 2.5% unfavorable impact with a nine months average rate at 1.119 compared to 1.087 for the same period of 2024. On a gross profit level, the increase in the margin from 41.4 to 44.4, as already mentioned in our prior press releases confirm once again the recovery efficiency in our production processes together with the operating leverage that our business model allows us when certain volumes are achieved. All of these impacts have more than compensated the increase of the depreciation following the investments in fixed assets we made during the latest months to expand our capacity and increase the automation. The gross profit, again, at cost and currency, would have been approximately 9 million euro higher by using the nine months 24 average rate, bringing the margin above 45%. Consistently, the EBITDA reflected the same trend, showing an increase in the margin, benefiting also from the savings attributable to the US organization, and even including the negative Forex impact for approximately 8.1 million. Finally, let's have a look at the net financial position. It is up for approximately 24 million compared to the end of June, while the variance in the nine months of the year is mainly attributable to 114 million generated through the operating activities, 26 million generated by the sales of the Santa Clara building, more than offset by 51 million absorbed by the investment of the period, 32 million absorbed by the purchase of treasury shares according to the buyback program. 20 million absorbed by the acquisition of the remaining minority stake in EUA, now 100% owned. 7 million absorbed by the acquisition of a minority stake in industry service INC, so a company listed in Taiwan's emerging stock market, where we have a slightly more than 9% stake. And finally, $23 million theoretically absorbed by the unrealized effects impact on the foreign currency bank accounts. Moving to the Q4 guidance, so as said during the latest capital market day and during also the latest press releases, we confirm once again the trajectory. for the organic meat single-digit growth in our reference market on a yearly basis, together with a consistent strengthening of the profitability with increasing volumes and confirmed market share until the year end. That said, the fourth quarter of the year is expected to show the following figures, also impacted again by an expected deterioration of the US dollar, as you can see on the right side of the chart. against the euro so revenue to be about 160 million plus minus three percent gross margin in the range of 46 plus minus two percent and the abita margin in the range of 34.7 plus minus two percent this is all i have so thanks everyone for your attention now we can move to the q a session

Thank you to the speakers today. We now have an opportunity for questions. As a reminder, if you would like to ask a question, please use the raise hand function on your screen or for those dialing in, it's star nine on your keypad. Once your name is announced, please unmute your line. State your company name before asking your question. Thank you. The first question today comes from Andrea Todeschini. Please go ahead, Andrea.