Vidrala Sa

Good morning, everyone, and thank you for the time to join this call. As previously announced, Bidron has released its 2024 third quarter results earlier today, and we have also published a results presentation that will serve as the supporting material for this conference call. In line with the presentation, we will begin by briefly reviewing the key figures disclosed today, and then we will dedicate ample time to discussing business performance in the Q&A session. So starting with the main magnitudes in the first nine months of 2024, we achieved as most relevant business figures revenues above 1.2 billion euros, an EBITDA of almost 338 million euros, and a net income equivalent to an EPS of 7.22 euros. Net debt at the end of the period stood at 299 million euros, which is equivalent to a leverage ratio of 0.7 times the pro forma EBITDA, which considers the contribution of the last 12 months from Bitterport. Moving to slide 4, we look at the top-line performance by analysing the annual revenue variation categorised by concept, leading to the reported figure of 1,216.4 million euros. As shown in the graph, this figure reflects 0.9 growth at constant currency and comparable scope. Volumes increased by almost 9%, which was nearly offset by a negative price-mix effect. FX and scope, which aggregates the combined effect of the incorporation of Vidro Porto's 2023 year-to-date results and the exclusion of Vidrella Italy since 1st of March 2024, these two effects contributed an additional 1% to revenue growth. Continuing with the key business figures mentioned earlier, we analyzed the variation in operating income using the same breakdown. So for the first nine months of 2024, EBITDA amounted to 337.7 million euros, representing an organic improvement of 4.3%. Considering the rest of effects, EBITDA increased by 7% year-on-year. These operating figures led to a robust operating margin, EBITDA over sales, of 27.8% in the period, which means an expansion of of 140 basis points compared to the previous year. Now, in this slide, we present the distribution of sales and EBITDA by business unit under the new perimeter, that is, including Vidro Porto in 2023 figures and fully excluding the results of Vidrella Italy in 2024. Although, as you know, Vidrella Italy contributed to reported sales and EBITDA in the first two months of 2024, and then it was reported that discontinued operations contributed to net profit from March to June. The graphs show very similar trends to that reported back in July. Iberia is still experiencing weaker performance due to price adjustments and a soft demand context, but results should improve in Q4, mainly due to easier comps. The UK continues to perform well driven by the filling business integration and better glass falling performance. And Brazil is still enjoying the benefits of the capacity expansion executed in 2023. Finally, we take a close look at free cash flow generation using this chart that outlines the year-to-date cash conversion. Starting with an EBITDA margin of 27.8%, we have allocated 10.4% of sales to investments and an additional 4.6% to the aggregate of working capital, financials and taxes. Consequently, free cash flow generation is close to 13% of sales. As a result of this, net debt at the end of September 2024 closed at 299.1 million euros, which is equivalent to the leverage ratio of 0.7 times last 12 months pro forma EBITDA. These figures include, of course, the reimbursements for recent M&A and the acquired debt, as well as the proceeds from the sale of Italy and the amount allocated to dividends and survey backs. And now, before turning to the Q&A, I pass the word to Raúl so that he can strike main conclusions or highlights and make additional comments.

Good morning. Thank you, Inigo. And thank you all for attending this meeting today. It's Friday morning, quite a busy day for most of you. We are aware of this, and that's why we do appreciate that much your time. Thank you. Well, our results published today put on evidence that we are creating a stronger Vidrala. A Vidrala grounded on a more solid business profile, better diversified, strategically refocused on core regions, resilient under weak demand environments, less seasonal thanks to a great combination of three different markets of activity with the proper dynamics, and above all, a business profile that is finally showing its capacity to generate a superior structural level of cash that will help us elevate the company to a new level as a packaging supplier of choice. Indeed, we see 2024 as a transformational year for us. A change that we are executing with the expected results. As a good proof of this, despite the prolonged period of demand weakness, we are still suffering in some of our more mature markets. We are today to reiterate our guidance for the full year. That means that we still see our full year EBITDA at 450 million euros, and that also means that we do expect to exceed 180 million euros of cash generation in the year, a point that will mark a record level for us to help us better invest to create future. And we will do it strictly fixed to our three core priorities, customer, cost, and capital. Customer first. We will invest with the aim to consolidate and reinforce our commercial relationships and supply our products and services under the most efficient, competitive, and sustainable way. Cost, second. We will use our internal glass manufacturing expertise to remain efficient, and we will use our superior level of cash to invest more, more than in the past, to further improve our competitiveness and better serve our markets. And capital. Third, we will strictly control our inventory levels to remain adapted to the existing conditions when needed. And much more relevant, we will execute our ambitious CapEx plans and our ambitious corporate strategy actions, maintaining always our financial leverage radius, and their particularly solvent levels. At the end, we are becoming a multinational company, a particularly competitive manufacturer. We invest with ambition. Finally, in my conclusion, you probably may note in my words that we are living intense times in Vidrala, quite dynamic internally. We have the confidence that we are creating future. that will be reflected in value for our shareholders, in competitive service proposals for our customers, in future for our people, and in business sustainability for all of our stakeholders. Hope you today appreciate in our numbers, in our message, a good proof of our confidence in our purpose. Thank you.

Thank you.