Vidrala Sa

Buenos días y bienvenidos a la presentación de resultados del tercer trimestre de 2025 de Vidrala. La compañía estará representada por Raúl Gómez, CEO, Íñigo Mendieta, director de finanzas corporativas, y Unai Álvarez, responsable de relación con inversores. La exposición se realizará en inglés. En el turno de preguntas se atenderán también preguntas en castellano. En la página web de la sociedad, www.vidrala.com, encontrarán documentación de soporte a esta presentación, así como un enlace para acceder al webcast. Good morning and welcome to the conference call organized by Vidrala to present its 2025 third quarter results. Vidrala will be represented in this meeting by Raúl Gómez, CEO, Íñigo Mendieta, Corporate Finance Director, and Unai Álvarez, Investor Relations. The presentation will be held in English. In the Q&A session, questions will also be answered in Spanish. Nevertheless, it is strongly recommended to post questions in English, in order to facilitate the understanding of everyone. In the company website, www.3wsvidrela.com, you will find a presentation that will be used as a supporting material to cover this call, as well as a link to access the webcast. Mr. Alvarez, you now have the floor.

Good morning, everyone, and thank you for joining us today. Earlier this morning, Vidrela published its results for the third quarter of 2025. Alongside these results, I have made available a presentation that will serve as a reference throughout this call. We will begin by working through the main figures released today, and then we will move on to the Q&A session, where we will address your questions. With that, I will now hand over to Inigo, who will take you through the key financial highlights. Thank you, Naim.

Let's start with a brief overview of the key financial figures. During the first nine months of 2025, we recorded revenues of 1,124 million euros, an EBITDA of almost 329 million euros, and a net income equivalent to earnings per share of 4.93 euros. As of September, net debt amounted to 150 million euros, representing a leverage ratio of 0.3 times over the last 12 months EBITDA. Please remember that the sale of the Italian business in 2024 affects year-on-year comparisons. Moving on to the top-line performance. Total sales for the period amounted to 1,124 million euros. On a like-for-like basis and at constant exchange rates, this represents a year-on-year decrease of 5.1%. This variation primarily reflects the price adjustments, which remain within the expected range of minus 3 to minus 5%, alongside continued soft demand dynamics. In addition, the scope effect resulting from the exclusion of the Italian business had the negative impact of 1.4%. Moving on to the next slide. EBITDA for the first nine months of 2025 reached 328.9 million euros, reflecting an organic growth of 0.5%. This performance demonstrates the resilience of our diversified business model and the steps we are taking to navigate the current market environment. We are intensifying our investments while implementing measures to reinforce our cost base. This operational performance delivered a strong EBITDA margin of 29.3%, up 150 basis points year-on-year, underscoring our ability to stay competitive without comprising our profitability. Let us now review revenue and EBITDA by region, reflecting the current scope, that is, with Italy fully removed from last year's numbers. Overall, the business is performing in line with expectations, with price adjustments being implemented across all markets, and in the third quarter, volumes were stronger in Iberia, weighted down in Brazil basically by adverse weather conditions, and showed an improved trend in the UK and Ireland. Across all regions, margins continue to hold up well, supported, as we said before, by our ongoing footprint optimization and disciplined cost management. Pre-cash flow conversion lies at the heart of how we create and preserve value. This chart illustrates how effectively we have converted cash over the first nine months of the year. Starting from an EBITDA margin of 29.3%, we have reinvested almost 12% of our sales in capex and allocated a further 3.5% to working capital, financials and taxes. As a result, we generated a robust free cash flow generation equivalent to almost 14% of sales. Consequently, by the end of September, net debt stood at 150.3 million euros, maintaining a low leverage ratio of 0.3 times EBITDA. This illustrates the capability of our model in turning strong operational results into cash and supporting key investments. With a strong balance sheet, We are well positioned to consider potential growth opportunities, continuously optimize our operations, and deliver value to our shareholders. And now, before we open the floor for questions, we share additional perspectives on our performance and outlook.