Vidrala Sa

Good afternoon and welcome to the conference call organized by Vidrala to present its 2026 third quarter results. Vidrala will be represented in this meeting by Rául Gómez, CEO, Galo Alvarez, Chief of Sustainability and Corporate Development and Unai Alvarez, Investor Relations. The presentation and the Q&A session will be held in English in order to facilitate understanding of everyone. In the company website, www.3wsvidrala.com, you will find available a presentation that will be used as supporting material to cover this call, as well as a link to access the webcast. Mr. Álvarez, you now have the floor.

Good afternoon, everyone, and thank you for taking the time to attend today's call. Earlier this morning, Vidrala published its results for the third quarter of 2026. Alongside these results, we have made available a presentation that will serve as a guide throughout this call. We will start with an overview of the key figures released today, followed by a closer look at the new Save by Back program we are proud to announce today. We will then share some closing remarks on the quarter before opening the floor to your questions. So, before we work through the key financial figures, please, note that the business acquired in Chile has been consolidated into our results from 1st of January of 2026. To ensure compatibility, we also present like-for-like figures with 2025 restated on a performer basis to include the results of the acquired business. During the first nine months of 2026, we obtained Revenues above 1,146 million euros and EBITDA above 338 million euros and net income equivalent to earnings per share of 4.99 euros. Fixed flow generation remained solid over the period, allowing us to further reduce net debt to 200 million euros at the end of September of 2026. This represents a low leverage ratio of 0.4 times last 12 months pro forma EBITDA. Let's take a closer look at revenue. This chart shows the year-on-year sales rates on a compatible perimeter basis, leading to reported sales of 1,146.5 million euros. Organically, at constant currency and on a like-for-like perimeter, sales declined by 3%. This reflects the anticipated price adjustment of 1.2%, where volumes continue to show a gradual and sustained improvement supported by a robust performance in South America. Moving on to the next slide. EBITDA for the first nine months of 2026 reached €338.5 million, reflecting an organic variation of minus 0.5%. This performance underlines the resilience of our industrial model and the benefits of our geographical diversification strategy in a challenging macroeconomic environment marked by persistent inflationary pressures. This operational performance delivered a strong EBITDA margin of 29.5%, up 27 basis points year on year, as we further strengthened our profitability in an adverse market context, reflecting the disciplined execution of our cost control initiatives and the structural competitiveness of our asset base. We now turn to sales and EBITDA evolution by business unit. Europe, UK and Ireland, and South America, which includes operations in both Brazil and Chile. As anticipated, we navigated a still weak demand environment in our European mature markets, where South America delivered a strong performance, underscoring the value of our geographical diversification. Across our regions, margins remain resilient, supported by our ongoing footprint optimization and the disciplined cost management, further enhanced by an ambitious, distinctive investment program. I will now hand over to Galo, who will take you through our balance sheet position.

Thank you, Unai. Let's have a look at the evolution of our financial position. Net debt stood at 201 million euros at the end of September, 0.4 times last 12 months pro forma EBITDA. That is 51 million euros lower than in June, and it compares with a peak of 273 million in March, after we paid 75 million euros of enterprise value for Vidrala Chile. Free cash flow over the first nine months was in line with our expectations. As every year, our cash profile is weighted to the second half, so we remain on track for the full year figure of around 200 million euros. We generated that cash while running an investment program that is by design above historical levels. We have chosen to invest countercyclically when others were holding back. We are accepting higher CapEx today to secure structurally lower OpEx for years to come. Let me repeat the logic behind this. Customers choose us because we serve them at the most competitive cost. That cost position sustains margins and cash. We reinvest the cash in a broader, better invested footprint, which further lowers our cost and strengthens our customer offering. and the balance sheet lets us do all of this while returning cash to shareholders. Turning now to shareholder remuneration. This chart shows the consistency of our distribution policy over time. Vidrala has raised its dividend every year and 2026 extends that record. Dividends paid this year totaled 62 million euros, up 15% on 2025, after adjusting for the bonus share issue completed in November 2025. The buyback program in progress covers 3% of the share capital, up to 90 million euros, and these shares will be redeemed. Today, We announce a new program for a further 1% of the share capital. Up to 30 million euros, also for redemption, which will start once the current program is completed. This new program adds to the dividend and keeps shareholders at the center of our strategy. It reflects our confidence in the business and its long-term prospects. and it fits our capital allocation discipline, returning cash to shareholders while continuing to invest in growth. Taken together, dividends in the two buyback programs amount to 182 million euros committed to shareholders in 2026. This is a deliberate effort this year and we make it from a leverage of 0.4 times while keeping the investment program intact. It reflects our confidence in the business and in the cash it generates. Finally, let me turn to the outlook for the full year. Nine months in, performance is consistent. with what we told you in April and July. So we reiterate our 2026 guidance. First, EBITDA of around 450 million euros, consolidating operating profits and margins despite the macro conditions and intense competition. Second, EPS growth above 5%, supported by operational performance, the earnings secretive contribution of our broader geographic footprint and the share buybacks. Third, underlying free cash flow of around 200 million euros, excluding restructuring costs, while we complete our CAPEX program. Rául, over to you for the closing remarks.