Electrolux Professional AB (publ)

Good morning and welcome to Electrax Professional Group Q1 result presentation. My name is Jakob Rubai. I'm heading up Investor Relations and Corporate Communications. And with me, as always, I have Alberto Zanatta, CEO, and Fabio Sarpilon, CFO. And let's get started immediately. Alberto, please, I hand over to you.

Thank you, Jakob. Good morning to everybody. Q1, we closed Q1 with challenging results. We reported declining sales and declining profitability compared to Q1 of last year. Looking into the results, not everything was negative. Indeed, we had a very good performance in Europe, in food Europe in particular, where we continued to grow sales and profitability along the trend, the last year trend. In the quarter, we also finally reported a change in trend in Japan. Japan market was challenging all along 2025, and in the quarter, growth, slight growth was back, both in laundry and in food and beverage. The performance in Asia-Pac, not impacted yet by the Middle East crisis, was We reported declining sales, but just because of a comparison with the previous year quarter where we had the large orders that did not repeat in 2026. Reality, the underlying business is improving in the Apmea region. The only area where we have, the two areas where we had decline declining performances is US food and beverage where the negative trend started after the summer 2025 continued also in Q1 this year and laundry but laundry it is important to mention that the underlying performances have been positive we grew volume and we reported the negative sales and margin only because of the impact of tariff and currency not yet compensated with price also this one is a comment that is important to underline we have in place price increases that will compensate currency and tariffs on a full year base not yet in Q1 but that is what is always happening in the meaning that The first quarter is a quarter where we typically invoice the product that we have in stock, in the order stock, from the previous year. The other element that is on the positive side is our efficiency program, the program that we launched in September, program that is progressing very well, both in terms of people that are leading the company, but also the move of the production. I was in Aubusson a couple of weeks ago, and the full production of coffee has been transferred. The lines are working. Production is there. Benefits are respected. Already in the quarter, we have roughly $19 million of savings, and these savings will increase quarter by quarter all along the year. I think I already mentioned by geographies the different trends. U.S. is growing. the challenging area, with two different dynamics related to the result of food and beverage and laundry, as I already said earlier. If we go into the detail of the food and beverage business, is the one where the largest impact of the US result, so with declining sales and profitability, In this result we have also to consider that we have the acquisition cost of Royal Range that are reported inside. Acquisition or integration now of the acquired company in the US that is also in this case progressing well. Moving on the laundry business, here it is important to underline that the underlying results are positive. We are delivering more units in the market. Overall, in particular in the United States, we are growing sales in the United States. Still, the price that has been applied, that has been already executed, are not compensating yet the... the negative effect of tariffs and currency on this matter tariffs just a word because you know that the rule has been changed but what we can say is that according to the new directive there will not be change basically compared to last year in the meaning that it will be slightly worse for laundry and slightly better for food and beverage. All in all, nothing changed basically compared to last year, with the difference that this year the negative effect will be compensated by price, as already mentioned. With this said, I believe Fabio.

Thank you Alberto and good morning to everybody. As you have heard from Alberto, quarter one was a challenging quarter where we faced volumes declining in food and beverage in many U.S. and the profitability of laundry was significantly affected by currency transaction effect. At the same time, we have continued to execute our plan, put in place the condition to restart the profitable growth journey. But let me Digging into the P&L, starting talking about currency. Currency, since roughly one year, has started to largely affect our P&L. A few data points regarding quarter one. Currency translation, we are reporting our performance in SEC, reduced top line roughly 7% and bottom line debita roughly by the same amount, with no material impact in terms of percentage, but a significant impact in terms of absolute value in terms of EBITDA. At the equal currency of last year, currency translation, our EBITDA this year would have been absolute term roughly 30 million higher. On top of currency translation, we had a significant impact also to currency transactions. that affected both sales and, in this case, margin. Currency translation in sales affected also the top line. Our organic growth would have been roughly 0.7% higher without the currency transaction effect. And our EBITDA value and margin would have been roughly 25 million or 0.9% if we would have been able to invoice the same currency of last year. So a significant impact both translation and transaction. Going through the P&L and this you see reflected also into GPT-3 volume, as Alberto mentioned, mainly related to food and beverage in the U.S. major disruption ingredient into our profitability. At the same time, we did continue to work to offset this negative impact and build for a better performance into the future. Price contributed positively in the quarter. Specifically, the price increase in US were able to cover the tariff impact with a neutral effect in the quarter, so a remarkable achievement. The refractory cost, as mentioned, delivers significant fixed cost savings, making the company even more agile going forward, and expected improvements in terms of benefits will come in the remaining part of this year and in 2027. We continue to invest. We invest in digitalization, our offer, and in bringing new product to the market. Last year we reached the peak of R&D cost and as we anticipated, we were foreseeing a decrease of R&D cost for this year, in particular starting in the second half. We see this already happening in food and beverage, not yet in laundry because laundry is working hard, the laundry colleagues working hard to bring remarkable innovation into the market during the summer. In the remaining part of the P&L, good development of the finance net, significant lower than last year, thanks to reduced borrowing and cost efficient from the structure. Tax rate, no particular comment in line with the guidance of 26%. Last comment on APS, APS was down roughly 20% reflecting the income performance. Just a reminder to everybody, one-third of this reduction is due to currency translation effect. So currency is really impacting our representation of performance on top of the other business, more business-related ingredient I mentioned earlier. Cash flow. Cash flow was positive. but roughly 100 million in value below last year. Two ingredients I would like to point it out. Once, that is the main source of cash flow that is earning EBITDA was roughly 90 million SEC below last year. But I want to mention that we have had cash out for roughly 50 million SEC related to the payment of the restructuring initiative that we have put in place. No particular comment on the CAPEX. Let me say 45 million was spent in this quarter. I confirm the guidance of higher than average, historical average spending for the remaining part of the year where we are going to complete major product introduction. What about capital efficiency? Here you see the development of the operating working capital. We are somehow increasing compared to March last year and compared to the level we achieved in December. A few comments about the ingredients. Inventory is stable on the same level. of the previous quarter in term of weight on sales. I believe this is a remarkable achievement considering that we have additional good in transit due to what is happening in the Middle East, making our transportation heavier in term of capital on sea. Our account receivable portfolio is with a good quality. We have seen the data for March. We have reached the lower value of past June sales. We have had historical since we measured. The offender on the operating working capital is related to the development of account payable. This is due to the fact that we bought less, the conscious decision, but also we are facing a situation where in some jurisdictions, one example is Japan, Local authorities, in particular for smaller suppliers, are imposing standard and shorter payment conditions. And we are good citizens and we apply it. So overall, higher weight, somehow higher weight of operating working capital on sales, but within, let me say, a good capital efficiency ratio. Last word on the financial position. The ratio at TET and EBITDA is 1.2 times after the acquisition range. I would say pretty strong situation. We start second quarter. In terms of borrowing structure, we have a bond that is expiring after the summer, and we are fully equipped to manage it. With that, back to you, Alberto.