Technoprobe Spa U/Adr

Good evening, everyone, and thank you for joining us. I'm here today with Stefano Beretta, our CFO. Together, we'll walk you through Technoprop's full year 2025 results and provide our guidance for the first quarter of this year. As usual, we will leave time for Q&A at the end of the presentation. Let me start with the key takeaway. 2025 confirmed Technoprobe's leadership in testing solutions for artificial intelligence logic chips. Based on our initial assumptions regarding organic growth and market mix, we delivered on our revenue targets and expectations in terms of AI exposures. This performance reflects the investments we have made over the past few years, together with TechnoPro's strong and well-established expertise in MEMS technology, which continues to underpin our leadership in advanced testing. This result was mainly driven by a strong increase in data center GPU volumes, which is expected to remain the key growth driver also this year. At this stage, demand appears both solid and well supported. It is also worth highlighting that AI chips, as well as the most advanced semiconductor devices, require extremely high performance, low power consumption, and very fast data processing capabilities. These requirements are enabled by advanced packaging architectures, which integrate multiple components in the single electronic device using highly sophisticated technologies. As a result, these architectures require advanced testing solutions based on MEMS technologies. And this supports our expectation of a progressive and steady increase in demand for advanced logic testing solutions. Moving to the consumer segment, which for us mainly includes PCs and mobile devices, 2025 was essentially a year of stabilization. Looking ahead, we expect moderate growth in 2026, although some uncertainty around the replacement cycle remains. In the automotive and industrial segment, we expect a gradual recovery despite the long tail of the stocking process that is likely to continue through this year. Overall, our outlook for the current year remains positive. Our focus remains on strengthening technoprops leadership in the AI space further consolidating our distinctive expertise in advanced testing across both front-end and back-end, and continuing to work on ambitious projects to expand into the high bandwidth memory market segment. Now, I turn over to Stefano Beretta, who will give you more color on 2025 results.

Thank you, Stefano, and good evening. Thank you for joining us. As you may have read in our press release, revenue in the fourth quarter were 161.8 million, slightly above our guidance, registering an increase of 3.5% compared to the same quarter of prior year, with a remarkable sequential increase of 15% compared to Q3 2025. Gross profit increased 13.4% compared to the same period of 2024, for an amount of 71.8 million, representing a 44.4% margin. And consistently, the EBITDA increased 34.2% compared to the fourth quarter of 2024, up to 55.3 million, representing a 34.2% margin, slightly below the mid-range guided during our prior poll. Moving to the year-to-date figures, Total revenue were just over 628 million, with an year-on-year increase of 15.7%. Gross profit was 279.1 million, 24.9% higher compared to the same period of 2024, and representing a margin of 44.4%. Finally, the EBITDA closed at 201.4 million, up 47.5% compared to the same period of 2024 and representing a margin of 32.1%. 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 DEIS tech acquired on May 27 in 2024, then present for the seven months only in the same period of 2024. Moving to this page, you can see the annual trend by quarter of our main KPIs. So excluding the cyclicality we observed in the third quarter, the steady growth in all our KPIs was consistent with our prudent and realistic view of the market and confirms the solidity of our plan, despite the uncertainties that characterize 2025, particularly in the consumer and automotive segments. as well as the headwinds of the dollar weakness that we have been experiencing through 2025. The organic revenue in 2025 versus 2024 was, as expected, a high single digit in the range of 8% approximately. On this page, you can see a summary comparison between the financials at the year end for 2024 and 2025. Just to comment that further, revenue year-on-year increase of 15.7% was mostly driven by the change of perimeter, so DIS inclusion, partially offset by Santa Clara shutdown for approximately $49 million, in addition to an organic growth of approximately $36 million, as I said, 8% approximately, largely sustained by artificial intelligence volumes, as well as a softer recovery on the consumer segment, and all of them partially mitigated by the weakness in automotive and industrial. The mentioned growth components have been partially upset by the FX headwind you can see here represented for about 28 million. In fact, the revenue expressed at the cost and currency, so using the same FX average rate in 2024, would have been approximately 28 million higher than reported revenue. meaning an unfavorable impact between 4% and 5%, with a 12-month average FX rate at 1.13 compared to 1.082 for the same period of 2024. On a gross profit level, the increase in the margin of 330 basis points from 41.1% 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 by the increase of depreciation following the investments in fixed asset made during the latest months to expand our capacity and increase the automation. Gross profit at cost and currency would have been approximately 20 million higher by using the 24 average rate, so bringing the margin well above 45%. Consistently, the EBITDA reflected the same trend, showing an increase in the margin of 700 basis points from 25.1% to 32.1%, benefiting also from savings attributable to the US organization, and even including the negative mentioned Forex impact for approximately 18 million, which would have brought the margin above 33% at cost and currency. Finally, net financial position is up for approximately 28 million compared to the end of December 24. with the variance mainly attributable to 212 million generated through operating activities, 26 million generated by the sales of Santa Clara building, partially upset by 99 million absorbed by the investments of the period, 60 million absorbed by the purchase of treasury share according to the buyback program, 20 million absorbed by the acquisition of the remaining minority stake in EUA, that is now owned 100%. And 7 million absorbed by the acquisition of a minority stake in InnoStar Service. And finally, 22 million theoretically absorbed by the unrealized FX impact on foreign currency bank accounts. Moving to this page, it's worth highlighting the shift In strategy compared to what was announced during our latest capital market day back in April 2025, when we expected investments to normalize around 8-10% of annual revenue. However, the acceleration that characterized certain markets in the second half of 2025, along with Technoprop's market share, contributed to the decision to significantly increase our investments, aiming to double production capacity by the second half of 2027. And this decision has already shown its effects in the final quarter of 2025, when the investments were almost equal to those made in the first nine months of the year. I mentioned before for a total of approximately 99 million euros in 2025. I hand over to Stefano Felici to comment further this page.

Thank you, Stefano. As we look ahead to 2026, the geopolitical environment will continue to shape the global economic landscape. Ongoing tensions in the Middle East, combined with evolving trade restrictions, are creating a context of uncertainty that is influencing both demand and supply chains. In semiconductors, the industry is responding with a clear shift toward geographic diversification. The concentration of leading-edge air capacity in Taiwan is accelerating investments in the United States, Japan, and Europe. At the same time, governments support across all major regions is reinforcing the development of local ecosystems. This is driving a more regionalized industry with greater complexity and different approach to capital allocation. Importantly, we do not expect these dynamics to weaken overall semiconductor demand. What we do expect is a structural revolution where capacity is built how supply chains are organized, and how products are segmented will continue to change, increasing the overall complexity of the industry. From a testing standpoint, the underlying drivers remain very strong. Artificial intelligence, high-performance computing, and advanced memory are fully sustained demand. As devices become more complex, the level of testing required per chip continues to increase, effectively expanding our addressable market. At the same time, the transition to chiplet architectures and advanced packaging, particularly HVM, is shifting the industry toward more stringent quality requirements at wafer level and beyond. This is increasing the importance of the advanced probing, final test and burn-in, especially for high-performance devices. As a result, we are seeing a strong demand for high-end probing solutions, HVM-related applications, and advanced interface technologies. Growth is being driven not only by volumes, but also by mix, performance requirements, and additional testing steps. While traditional consumer and industrial segments remain uneven, the AI and data center ecosystem continues to provide a solid and structural growth foundation for our business. Against this backdrop, 2026 will be a year of execution for technical We are focused on strengthening our support to customers and positioning the company for the next phase of growth. From a product perspective, we remain fully committed to the high-end logic segment, while accelerating our expansion in HPM, where we expect to qualify with two additional leading customers and investing in new opportunities such as a CD company. Overall, we are confident in our position and in our ability to execute leveraging strong structural strength and our technology leadership to drive sustainable long-term growth. Now I turn over again to Stefano Beretta.