Q2 2026 Dexelance SpA Earnings Call

September 8, 2026

Speaker #2: Results presentation. Before I hand over to your host today, please be advised there will be an opportunity to ask questions at the end of the presentation.

Operator 2: Results presentation. Before I hand over to your host today, please be advised there will be an opportunity to ask questions at the end of the presentation. In order to do so, please use the raise hand function on your screen, or for those dialing in, it is star nine on your keypad. I now have pleasure handing over to Andrea Sasso, Chairman and CEO. Please go ahead, Andrea. The floor to you.

Operator: Results presentation. Before I hand over to your host today, please be advised there will be an opportunity to ask questions at the end of the presentation. In order to do so, please use the raise hand function on your screen, or for those dialing in, it is star nine on your keypad. I now have pleasure handing over to Andrea Sasso, Chairman and CEO. Please go ahead, Andrea. The floor to you.

Speaker #2: In order to do so, please use the raise hand function on your screen or, for those joining in, press "turn 9" on your keypad.

Speaker #2: I now have pleasure handing over to Andrea Sasso, Chairman and CEO. Please go ahead, Andrea, the floor to you.

Speaker #3: Thank you. Good afternoon, everyone. And thank you for joining us for the presentation of our financial results. Revenue increased by 18% compared to last year.

Andrea Sasso: Thank you. Good afternoon, everyone, and thank you for joining us for the presentation of our financial results. Revenue increased by 18% compared to last year, reaching EUR 108.26 million, mainly driven by the contribution of the omnichannel go-to-market. On an organic basis, revenue declined by 8.9%. However, we saw a clear improvement in the second quarter, with the decline narrowing to 6% compared with 11% decline in the first quarter. We are operating in a contracting market. For example, according to Federlegno as of April, the upholstered furniture segment was down 8%, while lighting was down 4%. Despite the challenging market, we delivered a EUR 2.8 million improvement in EBITDA, with a particularly strong contribution from the second quarter, also organic, driven by effective cost control and disciplined expense management, bringing EBITDA to EUR 13.8 million, representing a 7.6% margin and EUR 1.1 million net result.

Speaker #3: Revenue reached €108.26 million, mainly driven by the contribution of the omnichannel go-to-market. On an organic basis, revenue declined by 8.9%. However, we saw a clear improvement in the second quarter, with the decline narrowing to 6% compared with an 11% decline in the first quarter.

Speaker #3: We are operating in a contracting market. For example, according to Federlegno as of April, the upholstered furniture segment was down 8%, while lighting was down 4%.

Speaker #3: Despite the challenging market, we delivered a €2.8 million improvement in EBITDA, with a particularly strong contribution from the second quarter. Also, organic, driven by effective cost control and disciplined expense management, bringing EBITDA to €13.8 million, representing a 7.6% margin, and a €1.1 million net result.

Andrea Sasso: Turning to our net financial position, we report approximately EUR 25 million net bank debt, increasing to EUR 68 million, including put and call and earn-out, and to EUR 101 million net financial position according to IFRS 16 principle. Please, Mirella.

Speaker #3: Turning to our net financial position, we report approximately €25 million in net bank debt, increasing to €68 million including put and call, and then up to €101 million net financial position according to the IFRS 16 principle.

Speaker #3: Please, Mariella.

Speaker #4: Thanks, Andrea. And good evening, everyone. So, moving to the slide number 3. As you probably remember, during the second quarter we also completed the capital increase announced on the 13th of May, when the final terms were set.

Operator 2: Thanks, Andrea, and good evening, everyone. Moving to slide number 3. As you probably remember, during Q2, we also completed the capital increase announced on 13 May, when the final terms were set. After the announcement of last year, that consisted of EUR 50 million through the issuance of new ordinary shares, plus up to EUR 20 million serving the exercise of the warrant attached to the newly issued shares. The rights offering ran from 18 May to 1 June 2026, and the transaction was successfully completed on 5 June, with the capital increase fully subscribed and an overall amount of proceeds of roughly EUR 50 million. Around 33 million new shares were issued, together with one warrant for each new share.

Marella Moretti: Thanks, Andrea, and good evening, everyone. Moving to slide number three. As you probably remember, during Q2, we also completed the capital increase announced on 13 of May, when the final terms were set. After the announcement of last year, that consisted of EUR 50 million through the issuance of new ordinary shares, plus up to EUR 20 million serving the exercise of the warrant attached to the newly issued shares. The rights offering ran from 18 of May to 1 June 2026, and the transaction was successfully completed on 5 June, with the capital increase fully subscribed and an overall amount of proceeds of roughly EUR 50 million. Around 33 million new shares were issued, together with one warrant for each new share.

Speaker #4: After the announcement last year, which consisted of €50 million through the issuance of new ordinary shares, plus up to €20 million for the exercise of the warrants attached to the newly issued shares.

Speaker #4: So the rights offering ran from the 18th of May to the 1st of June, 2026, and the transaction was successfully completed on the 5th of June, with the capital increase fully subscribed and an overall amount of proceeds of roughly €50 million.

Speaker #4: Around 33 million new shares were issued, together with one warrant for each new share. The warrants were subsequently listed and admitted to trading on Euronext Milan on the 10th of June, 2026, and will be exercisable between the 7th of May and the 8th of June, 2029, at an exercise price of €3.02 per share.

Operator 2: The warrants were subsequently listed and admitted to trading on Euronext Milan on 10 June 2026, and will be exercisable between 7 May and 8 June 2029 at an exercise price of EUR 3.02 per share, with one new share granted for every five warrants exercised. Following the transaction, the new share capital of Dexelance amounts to EUR 59.9 million, which from an accounting perspective, this approximately EUR 50 million proceeds raised with the capital increase were allocated to share capital for EUR 33 million with the same number of the newly issued shares, 15.4 to share capital premium reserve, and 1.5 million to warrant reserve.

Marella Moretti: The warrants were subsequently listed and admitted to trading on Euronext Milan on 10 June 2026, and will be exercisable between 7 May and 8 June 2029 at an exercise price of EUR 3.02 per share, with one new share granted for every five warrants exercised. Following the transaction, the new share capital of Dexelance amounts to EUR 59.9 million, which from an accounting perspective, this approximately EUR 50 million proceeds raised with the capital increase were allocated to share capital for EUR 33 million with the same number of the newly issued shares, 15.4 to share capital premium reserve, and 1.5 million to warrant reserve.

Speaker #4: With one new share granted for every five warrants exercised. Following the transaction, the new share capital of Dexelance amounts to €59.9 million. From an accounting perspective, the approximately €50 million in proceeds raised with the capital increase were allocated as follows: €33 million to share capital, with the same number of newly issued shares; €15.4 million to the share premium reserve; and €1.5 million to the warrant reserve.

Speaker #4: So the strategic rationale behind the capital increase and the overall transaction was to strengthen the group balance sheet and financial flexibility, in order to support the mid-term ambition organic mid-term ambition plan announced later in December 2025, and also to preserve Dexelance's ability to pursue selective M&A opportunities, as always did, in line with the group's industrial strategy.

Marella Moretti: The strategic rationale behind the capital increase and the overall transaction was to strengthen the group balance sheet and financial flexibility in order to support the organic midterm ambition plan announced later in December 2025, and also to preserve Dexelance ability to pursue selective M&A opportunities as always did, in line with the group industrial strategy. Handing back to Andrea for our recent activities of the quarter.

Speaker #4: Handing back to Andrea for our recent activities of the quarter.

Speaker #3: If you go to page 4, we can see that in the first half of the year we continued to invest in strengthening and nurturing our brands, globally participating in the Salone del Mobile in Milan, as you know, I mean, from the beginning of our existence, I mean, we are participating with all brands in the Salone del Mobile, but you can see also at page 5, as well as in Design Week in Denmark, and as you can see at page 6, also in the Design Fair at the United States.

Andrea Sasso: If you go to page 4, we can see that in H1, we continued to invest in strengthening and nurturing our brands, globally participating in the Salone del Mobile.Milano. As you know, from the beginning of our existence, we are participating with all brands in the Salone del Mobile.Milano. But you can see also at page 5, as well as in 3daysofdesign in Denmark. As you can see at page 6, also in the design fair at the United States. If you go to page 7, these activities, among other, enable us to win and secure major projects such as the new house in Miami, designed by the Pritzker Architecture Prize-winning architect, Shigeru Ban.

Speaker #3: If you go to page 7, these activities, among others, enable us to win and secure major projects, such as the new house in Miami designed by the Pritzker Prize-winning architect Shigeru Ban. And, for example, if you go to page 8, the Villa Sea for You in Rodi, in Rhodes—placing our products and brands in some of the world's most prestigious high-end design spaces.

Andrea Sasso: And for example, if you go to page 8, to the Villa E-1027 in Roquebrune-Cap-Martin, placing our products and brands in some of the world's most prestigious higher design space. This kind of thing is very vitally important despite a challenging market. Please, Marella again.

Speaker #3: So, this kind of activity is very vital and important, despite a challenging market. Please, Mariella, again.

Marella Moretti: Going back to numbers at page 9. Commenting on the performance by different strategic business areas, let me remind you that 2025 numbers are referring to the old Dexelance perimeter, so excluding Modar, while 2026 figures are including respectively 3 months for the quarter and 6 months for the semester of Modar, starting from its consolidation back in September 2025. Going into Q2, revenue reached EUR 98 million, up almost 19% year on year, mainly driven by this perimeter effect. On an organic basis, all segments, as Andrea mentioned at the very beginning, showed a slight improvement year on year with respect to the very first month of the year, so Q1. In particular, lighting partially recovered the gap recorded in Q1, which revenues were down 9% and concluded the quarter roughly even compared to last year.

Speaker #4: Going back to numbers at page 9, commenting on the performance by different strategic business areas, let me remind you that 2025 numbers are referring to the old Dexelance perimeter, so excluding mode, while 2026 figures are including respectively 3 months for the quarter and 6 months of for the semester of mode, starting from the its consolidation back in September 2025.

Speaker #4: So going into the second quarter, revenue reached 98 million EUR, up 18 almost 19% year on year, mainly driven by this perimeter effect. On an organic basis, all segments, as Andrea mentioned at the very beginning, showed a slight improvement year on year with respect to the very first months of the year, so the first quarter.

Speaker #4: And in particular, lighting partially recovered the gap recorded in the first quarter, which revenues were down 9%, and concluding the quarter roughly even compared to last year.

Speaker #4: Kitchen and system returned to slight growth, plus 2.5%. Furniture, despite improving from the approximately minus 15% recorded in the first quarter, remains the area that is most impacted by current macroeconomic and market conditions.

Marella Moretti: Kitchen system returned to slight growth, +2.5%. Furniture, despite improving from the approximately -15% recorded in Q1, remains the area that is most impacted by current macroeconomic and market conditions. Overall, the residential segment recorded an organic decline of around -6%. Luxury contract declined by 9%, almost, year on year, which is reflecting the already anticipated seasonality we are seeing this year, which is more skewed towards H2, but it is also opposite with respect to what we always experience in this area in the previous periods. Based on current orders backlog, we continue to expect a recovery in the upcoming quarters, so namely Q3 and Q4 of the year.

Speaker #4: So overall, the residential segment recorded an organic decline of around minus 6%. Luxury contract declined by almost 9% year-on-year, which is reflecting the already anticipated seasonality we are seeing this year, which is more skewed towards the second half but is also opposite with respect to what we always experience in this area in previous periods.

Speaker #4: So based on current order backlogs, we continue to expect a recovery in the upcoming quarter, so namely the third and fourth quarters of the year.

Speaker #4: Looking at the very first half as a whole, revenues reached, as mentioned, €182.6 million, with the luxury contract accounting for €37 million, roughly down 12%. The residential segment generated almost €146 million, up around 29% on a total basis, and down approximately 8% on an organic basis.

Marella Moretti: Looking at H1 as a whole, revenues reached, as mentioned, EUR 182.6 million, with luxury contract accounting for EUR 37 million, roughly down -12%, and the residential segment generating almost EUR 146 million, up around 29% on a total basis and down approximately 8% on an organic basis. A positive mention goes to Modar, which you might remind that concluded Q1 up 10% with respect to the previous period. While they also had delivered another strong quarter in Q2. So the exit pace at the end of H1 was about 16% year on year. Going on the next page and moving to the breakdown by channel. Hard contract corresponds to luxury contract and therefore reflects the exact same trend just discussed for the quarter and for the half.

Speaker #4: At the positive mention goes to mode, which concluded you might remind that concluded the first quarter, up 10% with respect to the previous period, while they also had delivered another strong quarter in the second in the second quarter, so the exit pace at the end of the first half was plus 16% year on year.

Speaker #4: Going on the next page, and moving to the breakdown by channel, hard contract corresponds to luxury contract, and therefore reflects the exact same trend just discussed, for the quarter and for the half.

Speaker #4: While commenting on the residential businesses, growth involved the retail and the soft contract channel that you see both for the quarter and for the half year is supported by more consolidation.

Marella Moretti: While commenting on the residential businesses, growth in both the retail and the soft contract channel that you see both for the quarter and for the H1 is supported by more consolidation. On an organic basis, soft contracts showed an improvement year-on-year in Q2, although remaining in negative territory. The channel continues to be affected by longer decision-making processes and longer project timelines, which is a reflection of the macroeconomic uncertainty that we are seeing across more or less all markets, more regions, and end markets. From residential to hospitality to luxury cruising. Pure retail, on the other hand, remained broadly stable, showing Q2 somehow greater resilience with respect to soft contract, as we also had in Q1.

Speaker #4: On an organic basis, soft contract showed an improvement year on year in the second quarter, although remaining in negative territory. The channel continues to be affected by longer decision-making processes and longer project timelines, which is a reflection of the macroeconomic uncertainty that we are seeing across more or less all markets, more regions, and end markets.

Speaker #4: So from residential to hospitality to luxury cruising. Pure retail, on the other hand, remained broadly stable, showing the second quarter somehow greater resilience with respect to the soft contract, as we also had in the first one, in the first quarter.

Speaker #4: But this is also due to the fact that the retail channel is benefiting from an easier comparison base, because this channel has been experiencing weaknesses throughout all of 2025.

Marella Moretti: This is also due to the fact that the retail channel is benefiting from an easier comparison base because this channel has been experiencing weaknesses throughout the whole of 2025. However, this resilience was not able to offset the slowdown in soft contracts. A similar trend was also seen in the omnichannel markets, so in Modar, with retail and soft contract more or less accounting for half and half the overall revenue of the company. In fact, pure online sales have been growing faster with respect to project activities. Going to the next page, slide 11, and commenting on the geographical breakdown. Revenue growth across all regions except for Rest of the World was once again largely supported by most contributions. Although we saw some positive organic trends also in select markets.

Speaker #4: However, this resilience was not able to offset the slowdown in soft contract. A similar trend was also seen in the omnichannel go-to-market, so in mode, with retail in fact and accounting now for retail and soft contract more or less accounting for half and half the overall revenue of the company.

Speaker #4: And in fact, pure online sales have been growing faster with respect to project activities. Going to the next page, line 11, and commenting on the geographical breakdown, revenue growth across all regions except for the rest of the world was once again largely supported by most contribution.

Speaker #4: Although we saw some positive organic trends also in the selected markets. For example, Europe, revenue grew almost 40% in the first half, and this was also thanks to the continued positive organic performance in key markets like Switzerland, France, Austria, but also Spain and UK.

Marella Moretti: For example, Europe revenue grew almost 40% in H1, and this was also thanks to the continued positive organic performance in key markets like Switzerland, France, Austria, but also Spain and UK. They all recorded some slight signs of growth. Italy, on the other hand, so the domestic market, was slightly down, although revenues overall remained broadly stable in absolute terms, and mainly thanks to the performance in kitchen and system. Moving to North America, in H1, up 13%. This data is supported by most presence in the region, but also driven by regional shifts in luxury contract. We concluded some projects there. Even though there is some cautious optimism coming from also the local commercial subsidiaries we have in New York. The market environment in the area, however, remains very uncertain.

Speaker #4: They all recorded some slight signs of growth. Italy, on the other hand—so, the domestic market—was slightly down, although revenues overall remained broadly stable in absolute terms.

Speaker #4: And mainly thanks to the performance in kitchen and system. Moving to North America, in the first half, plus 13%. This data is supported by Mode's presence in the region, but also by, driven by, regional shifts in luxury contract, so we concluded some projects there.

Speaker #4: Even though there are some there is some cautious optimism coming from also the local commercial subsidiaries we have in New York. The vibrant market environment in the area, however, remains very uncertain, also following the recent announcement that very recent announcement on new tariffs affecting the trading with Canada.

Marella Moretti: Also following the very recent announcement on new tariffs affecting the trading with Canada. Finally, Rest of the World, overall in the semester, -9%. This is, again, affected by the shifts in luxury contract of some projects that were there in the area in H1 2025 and have now moved in other countries. But focusing on a very important area in the moment, Middle East. Middle East accounted for around 4% of the group revenues in H1. On one hand, most continues to show a positive trend in the region, while the rest of the organic business has been declining double digits. We already commented during the results of Q1 that we started to see some signs of slowdown and a more cautious attitude by clients, and this has been confirmed throughout the rest of the month of the year.

Speaker #4: Finally, Rest of the World, minus overall in the semester, minus 9%. This is again affected by the shifts in the luxury contract of some projects that were there in the area in the first half of 2025 and have now moved to other countries.

Speaker #4: But focusing on a very important area at the moment, the Middle East, the Middle East accounted for around 4% of the group's revenues in the first half.

Speaker #4: On one hand, mode continued to show a positive trend in the region, while the rest of the organic business has been declining double digit.

Speaker #4: And we already commented during the results of the first half of the first quarter that we started to see some signs of slowdown and a more cautious attitude by clients.

Speaker #4: And this has been confirmed throughout the rest of the month of the year, of course, it's a difficult situation. Thanks in fact, we didn't have, for luxury contract, confirmed the projects in the area, so it was supposed to already be a weaker let's say, a weaker year for luxury contract, but of course, the current market conditions are not helping the growth potential of the other residential businesses.

Marella Moretti: Of course, it's a difficult situation. In fact, we didn't have, for luxury contracts, confirmed the projects in the area. It was supposed to already be, let's say, a weaker year for luxury contracts. But of course, the current market conditions are not helping the growth potential of the other residential businesses. Of course, this is a key in the fact that in looking at a longer term perspective, Middle East is very important for the project business, and it was definitely one of the areas with the highest upside potential. Thank you. I will hand it over to Alberto for the P&L.

Speaker #4: And of course, this is a pity in the fact that this, in looking at a longer-term perspective, the Middle East is very important for the project business, and it was definitely one of the areas with the highest upside potential.

Speaker #4: Thank you, and I will hand it over to Alberto for the P&L.

Speaker #1: Thank you, Miranda. In the first half of 2026, the 17.9% increase in sales is attributable to the acquisition of mode, completed in September 2025.

Alberto Bortolin: Thank you, Marella. In H1 2026, the 17.9% increase in sales is attributable to the acquisition of Modar, completed in September 2025. On an organic basis, sales decreased by 8.9%. Nevertheless, representing an improvement compared with the Q1, when the decline was 11%. The organic reduction in sales, as mentioned by Marella before, is mainly attributable to the furnishing luxury contract businesses. EBITDA at EUR 13.8 million is improving, with the margin increasing from 7.1% to 7.6%. As shown in the table below, the organic gross margin improved from 33.4% to 35.2%. The contribution of Modar, a distribution company, is dilutive at gross margin level, bringing the overall gross margin to 33%. D&A is broadly in line with the Q1 and is higher than last year, mainly as a result of the acquisition of Modar. The financial expenses are consistent with the existing level of indebtedness.

Speaker #1: On an organic basis, sales decreased by 8.9%. Nevertheless, this represents an improvement compared with the first quarter, when the decline was 11%. The organic reduction in sales, as Miranda mentioned before, is mainly attributable to the furniture and luxury contract businesses.

Speaker #1: ABTA, at €13.8 million, is improving with a margin increasing from 7.1% to 7.6%. As shown in the table below, the organic gross margin improved from 33.4% to 35.2%.

Speaker #1: The contribution of Mode, a distribution company, is diluted at the gross margin level, bringing the overall gross margin to 33%. DNA is struggling in line with the first quarter, and is higher than last year, mainly as a result of the acquisition of Mode.

Speaker #1: Net financial expenses are consistent with the existing level of indebtedness. Adjusted net income returned to positive territory at $1.1 million, corresponding to a 0.6% margin.

Alberto Bortolin: Adjusted net income returned to positive territory at EUR 1.1 million, corresponding to 0.6% margin. At page 13. Looking at the Q2, we can see that despite the reduction in organic sales, the overall and organic contribution margins at 33.3% and 36.3% respectively, are above last year's figures of 33.2%. This demonstrates that despite the inflationary pressure resulting mainly from geopolitical developments in the Middle East, the group has maintained a balanced relationship between selling prices and purchase prices. Fixed costs show a lower incidence compared with the same period last year, decreasing from 26.2% to 25%. On an organic basis, fixed costs decreased by EUR 0.6 million, from EUR 21.6 million to EUR 21 million, mainly driven by the rationalization of commercial expenses, including trade fairs and advertising. At page 14.

Speaker #1: On page 14, looking at the second quarter, we can see that despite a reduction in organic sales, the overall and organic contribution margins—at 33.3% and 36.3%, respectively—are above last year's figures of 33.2%.

Speaker #1: This demonstrates that, despite the inflationary pressure resulting mainly from geopolitical developments in the Middle East, the group has maintained a balanced relationship between selling prices and purchase prices.

Speaker #1: Fixed costs show a lower incidence compared with the same period last year, decreasing from 26.2% to 25%. On an organic basis, fixed costs decreased by 0.6 million from 21.6 million to 21 million.

Speaker #1: Mainly driven by the rationalization of commercial expenses, including trade fairs and advertising. On page 14, cash flow showed an operating cash absorption of approximately $21 million, mainly driven by the seasonal trend in net working capital, which increased in the first quarter and decreased in the fourth quarter as orders and projects are completed and closed at year end.

Alberto Bortolin: Cash flow show an operating cash absorption of approximately EUR 21 million, mainly driven by the seasonal trend in working capital, which increased in the Q1 and decreases in the Q4 as orders and projects are completed and closed at year-end. From a financial standpoint, the capital increase of approximately EUR 50 million completed in June contribute to a significant reduction in net bank debt. As a result of the two factors described above, net bank debt decreased from EUR 52.7 million to EUR 25.2 million. The average cost of bank is approximately 4.5%. The financial debt also include EUR 42.7 million relating to minority stakes and other financial liabilities, slightly up compared with the year-end 2025 as a result of a change to an option expired date, as well as IFRS 16 lease liabilities, which decreased to EUR 33.2 million following the modification termination of certain lease agreements. Andrea, please.

Speaker #1: From a financial standpoint, the capital increase of approximately €50 million completed in June contributed to a significant reduction in net bank debt. As a result of the two factors described above, net bank debt decreased from €52.7 million to €25.2 million.

Speaker #1: The average cost of bank debt is approximately 4.5%. Net financial debt also includes €42.7 million, relating to minority stakes and other financial liabilities, slightly up compared with year-end 2025 as a result of a change to an option expiry date, as well as IFRS 16 lease liabilities, which decreased to €33.2 million following the modification or termination of certain lease agreements.

Alberto Bortolin: The financial debt also include EUR 42.7 million relating to minority stakes and other financial liabilities, slightly up compared with the year-end 2025 as a result of a change to an option expired date, as well as IFRS 16 lease liabilities, which decreased to EUR 33.2 million following the modification termination of certain lease agreements. Andrea, please.

Speaker #1: Andrea, please.

Andrea Sasso: Okay, let's go to page 15. Looking at order intake on a like-for-like basis, including Modar, we are more or less at the same level as in 2025. This gives us confidence in projecting full year revenue in a range of EUR 373 to 380 million, with an EBITDA margin above 10%, in the 10% to 10.5% range. This expectation remains broadly in line with our targets despite operating in a negative market environment. Whereas in our midterm ambition, we had assumed a return to positive market growth in 2026. A significant part of the outcome will depend on Q4 and on how the channel, and this is mixed, evolves. At this stage, we will continue to monitor market evolution over the coming month to reach a more solid conclusion. So far in Q3, we have not seen any clear sign of a market meaningful recovery.

Speaker #2: Okay, let's go to page 15. Looking at order intake on a like-for-like basis, including mode, we are more or less at the same level as in 2025.

Speaker #2: This gives us confidence in projecting fullier revenue in a range of EUR 373,380 million. We've an EBITDA margin above 10% in the 10, 10.5% range.

Speaker #2: This expectation remains broadly in line with our targets, despite operating in a negative market environment. In our mid-term ambition, we had assumed a return to positive market growth in 2026.

Speaker #2: A significant part of the outcome will depend on the fourth quarter and on how the channel and business mix evolves. At this stage, we will continue to monitor market evolution over the coming months to reach more solid conclusions, so far in the third quarter we have not seen any clear sign of a market meaningful recovery.

Speaker #2: So the presentation is now come to an end, and we can move on to the Q&A session. Thank you.

Andrea Sasso: The presentation has now come to an end, and we can move on to the Q&A session. Thank you.

Speaker #3: Thank you to the speakers today. We now have an opportunity for questions. As a reminder, if you would like to ask a question, please use the “raise hand” function on your screen, or for those dialing in, it's *star 9* on your keypad.

Operator 2: Thank you to the speakers today. We now have an opportunity for questions. As a reminder, if you would like to ask a question, please use the raise hand function on your screen, or for those dialing in, it's star nine on your keypad. Once your name is announced, please remember to unmute your line and state your company name before asking your question. Thank you. The first question today comes from Carmen Novell. Please, Carmen, go ahead.

Operator: Thank you to the speakers today. We now have an opportunity for questions. As a reminder, if you would like to ask a question, please use the raise hand function on your screen, or for those dialing in, it's star nine on your keypad. Once your name is announced, please remember to unmute your line and state your company name before asking your question. Thank you. The first question today comes from Carmen Novell. Please, Carmen, go ahead.

Speaker #3: Once your name is announced, please remember to unmute your line and state your company name before asking your question. Thank you. The first question today comes from Carmen Novell.

Speaker #3: Please, Carmen, go ahead.

Carmen Novell: Hi. Thank you for taking my question. I hope you can hear me.

Carmen Novel: Hi. Thank you for taking my question. I hope you can hear me.

Speaker #4: Hi, hi, thank you for taking my question. I hope you can hear me.

Operator 2: Hi, Carmen.

Operator: Hi, Carmen.

Speaker #2: Hi, Carmen. Hi, Carmen. Yes, we can hear you.

Operator: Hi, Carmen.

Andrea Sasso: Hi, Carmen. Yes, we can hear you.

Carmen Novell: Okay, great. I have two questions, actually. First, I wanted to ask if you can give us more color on the overall sentiment you are currently seeing in the market with reference to both residential and luxury contract. Second, if we should be concerned about the current cost inflation, even in the medium term, and even assuming a recovery in organic growth in the next years. Thank you.

Carmen Novel: Okay, great. I have two questions, actually. First, I wanted to ask if you can give us more color on the overall sentiment you are currently seeing in the market with reference to both residential and luxury contract. Second, if we should be concerned about the current cost inflation, even in the medium term, and even assuming a recovery in organic growth in the next years. Thank you.

Speaker #4: Okay, great. I have two questions, actually. First, I wanted to ask if you can give us more color on the overall sentiment you're currently seeing in the market with reference to both residential and luxury contractor.

Speaker #4: And second, if we should be concerned about the current cost inflation, even in the medium term, and even assuming a recovery in organic growth in the next years.

Speaker #4: Thank you.

Andrea Sasso: Hi, Carmen. With regard to the market, as I told you before, we have not meaningful sign that the market is recovering. Even the opposite, frankly speaking, because from a market point of view, retail is in clear difficulties, and also projects are overall postponed and discussed. By the way, in Q2, we have seen an improvement, and also frankly speaking, talking about Dexelance, July and August give us positive sign. Let's see September, finger crossed, but probably we are going in a situation of recovering even in Q3. But this is something that we are able to achieve without any help from the market because the situation till now, in many markets, frankly speaking, are in this negative feeling.

Speaker #1: Hi, Carmen. So, we will get to the market. As I told you before, we have no meaningful sign that the market is recovering.

Speaker #1: Even the opposite, frankly speaking, because, I mean, from a market point of view, retail is in clear difficulties, and also projects are overall postponed and discussed.

Speaker #1: By the way, I mean, in Q2, we have seen an improvement, and also, frankly speaking, talking about Dexelance, July and August give us a positive sign.

Speaker #1: Let's see, September—fingers crossed—but, I mean, we are probably going into a situation of recovery even in Q3. But this is something that we are able to achieve without any help from the market, because the situation till now, in many markets, frankly speaking, is in this negative feeling.

Speaker #1: For example, you know, the geopolitical issues in the Middle East are totally blocking that area, and in many of our companies, also our competitors, I know that we all try to recover.

Andrea Sasso: For example, the geopolitical issue in the Middle East are totally blocking that area, and in many of our companies, also our competitors, I know that we try everybody to recover in 2026. The difficulties in Europe, Germany continues to have some negative impact on the market. Looking to the FederlegnoArredo report in terms of market evolution, there are many negative points. France, -2%, Germany, -7%. United States, -12%, United Kingdom, -2.5%. I have to tell you that Dexelance is showing a different trend in the United States, as you have seen from the Marella presentation, we are proceeding well. Even in France, that in the last two years, the market was really down. We are recovering as Dexelance in this period of time, but any helps from a market point of view till now. With regard to cost, yes, Alberto?

Speaker #1: In 2026, I mean, the difficulties in Europe—Germany is continuing to have some negative impact on the markets. So also, looking to the federal, legal—I mean, reports in terms of market evolution—I mean, there are many negative points: France, minus 2%; Germany, minus 7%; the United States, minus 12%; United Kingdom, minus 2.5%.

Speaker #1: I have to tell you that Dexelance is showing a different trend in the United States. As you have seen from the Marella presentation, we are proceeding well, even in France, where in the last two years the market was really down. I mean, we are recovering as Dexelance in this period of time, but there haven't been any helps from a market point of view till now.

Speaker #1: With regard to cost, yes, Alberto. During this month, we observed some increase—roughly 3%—in some kinds of raw materials and in transportation. At the same time, our companies changed the price list to cover the increase in cost.

Andrea Sasso: During these months, we observed some increase, roughly 3%, in some kinds of raw materials and in transportation. At the same time, our companies changed the price list and cover the increase in cost. As we showed before, the percentage of gross margin is correct. We did not see a decrease. For the coming months, our opinion is the cost increase is not the main issue. We need to increase our revenue, and for this reason, we work to recover our revenue. In our opinion, the inflation pressure is not the first or the main issue in our company. As you can see, Carmen Novell, in our gross margin, we were able to recover these kinds of things. Thanks for one side, the price list increase. On the other side, for the better productivity we have in many factories.

Speaker #1: In as we showed before, the gross margin is the percentage of gross margin is correct, we didn't see a decrease. For the coming months, we our opinion is the increase the cost increase is not the main issue.

Speaker #1: We need to increase our revenue, and for this reason, we work to recover our revenue. But in our opinion, inflation pressure is not the first or the main issue in our company.

Speaker #2: As you can see, Carmen, in our gross margin, we were able to recover these kinds of things. That's thanks, on one side, to the price list increase.

Speaker #2: On the other side, for better productivity, we have manufacturers, we have

Andrea Sasso: We found other suppliers where some suppliers increase too much their price list. Obviously, we negotiate with the suppliers. We try to find other solution in our products. Obviously, we change our price list with an average increase of 3%. For sure, we cannot deny that in the market, there is a pressure this year in terms of raw material, as it was not, again, for many years. In the different companies we have, we register in the first six months some increase of raw materials between 1% and 3%. It depends on the company, that range. But till now, we were able to absorb in a positive way, thanks to price and productivity.

Speaker #1: We found other suppliers where some suppliers increased their price list too much. Obviously, we negotiate with the suppliers, we try to find other solutions in our products, and obviously we changed our price list with an average increase of 3%.

Speaker #1: For sure, we cannot deny that in the market there is a pressure this year, in terms of raw material, as it wasn't—I mean, for many years. In the different companies we have, we registered in the first six months some increase of raw materials between 1 and 3%. It depends on the company, that's the range, but till now we were able to—I mean, to absorb in a positive way, thanks to price and productivity.

Speaker #4: Okay, thank you very much.

Carmen Novell: Okay. Thank you very much.

Carmen Novel: Okay. Thank you very much.

Speaker #3: Thank you, Carmen, for your question. The next question now comes from Paola Carboni. Please, Paola, go ahead.

Operator 2: Thank you, Carmen, for your question. The next question now comes from Paola Carboni. Please, Paola, go ahead.

Operator: Thank you, Carmen, for your question. The next question now comes from Paola Carboni. Please, Paola, go ahead.

Speaker #4: Yes, hello, can you hear me?

Paola Carboni: Yes, hello, can you hear me?

Operator 2: Hi, Paola. Yes.

Operator: Hi, Paola. Yes.

Speaker #2: Hi, Paola, yes.

Andrea Sasso: Yes. Hi, Paola.

Speaker #1: Yes, hi, Paola.

Speaker #4: Hi, hi. Good afternoon, everybody. Yes, a few questions from my side. The first one, I'll start from the previous questions from Carmen, and just as a follow-up—if you are planning further price list hikes for the second half and to what extent—that would be interesting.

Paola Carboni: Hi. Good afternoon, everybody. Yes, a few questions from my side. The first one, I start from the previous questions from Carmen Novell, and just as a follow-up, if you are planning further price list hikes for the H2 and to what extent? That will be interesting. Second point, you have commented about gross margin and your effort for cost savings. If you can remind us what have you already achieved in H1, and what further opportunities do you see in this respect for H2? Another question is about the order intake, specifically for luxury contract. I appreciate, as you just confirmed, that your backlog is going to support revenues in the second part of the year based on the timeline of deliveries you can see at the moment. But looking forward, I am wondering, what are you experiencing in terms of order intake for the future?

Speaker #4: Second point: you have commented on gross margin and your efforts for cost savings. If you can, remind us what you have already achieved in H1, and what further opportunities you see in this respect for H2?

Speaker #4: Another question—it's about the order intake, specifically for luxury contracts. I appreciate, as you just confirmed, that your backlog is going to support revenues in the second part of the year.

Speaker #4: Based on the timeline of deliveries you can see at the moment—but, I mean, looking forward—I'm wondering what are you experiencing in terms of order intake for the future, in your ambition of raising the number of clients, so acquiring new clients, and at the same time, rebuilding or restarting, let's say, the business with one major existing client that reduced orders in the past few quarters.

Paola Carboni: In particular, with regards to your ambition of raising the number of clients, so acquiring new clients, and at the same time, rebuilding, restarting, let's say, the business with one major existing client that reduced orders in the past few quarters. So if you can update us on that. And the very last one instead on CapEx, if you remind us your plan for the year, just to check if everything is confirmed. Thank you.

Speaker #4: So if you can update us on that. And the very last one, on CAPEX—just to remind us of your plan for the year, to check if everything is confirmed.

Speaker #4: Thank you.

Andrea Sasso: Okay, Paola. I will start leaving the cost savings and CapEx to Alberto Bortolin. With regard to the price increase, maybe the majority of our company has done the price increase. Just two, they are doing a fine-tuning because they just do the increase from the price list of September. Okay? So all the other has already done. So just two companies will do some movement in September, as some other companies in the market, because generally, there was somebody increasing between January and February. I mean, January and March, some others between June, September. That's the movement that we have seen also to our competitors. With regard to the order intake, in particular in the luxury contract, you are right. There was one company, and the name was not affecting from one main customer coming from the Kering group.

Speaker #1: Okay, Paola, I mean, are we starting to leave the cost savings and CAPEX to Alberto? With regard to the price increase, maybe the majority of our company has done the price increase, just they are doing a fine-tuning because they just did the increase from the price list of September, okay?

Speaker #1: So all the others have already done it. So just two companies will do some movements in September, as some other companies in the market did. Because generally, there was someone increasing between January and March, and some others between June and September.

Speaker #1: That's the movement that we have seen also with our competitors. With regard to the order intake, in particular in the luxury contract, I mean, you're right, there was one company and the name was not affected by one main customer coming from the Kering group.

Speaker #1: I mean, I have to say that we have done a fantastic recovering activity with new customers, and we are seeing, I mean, great results just starting in the second quarter, and above all in the third quarter.

Andrea Sasso: I have to say that we have done a fantastic recovery activity with new customer, and we are seeing a great result just starting the Q2, and then more in the Q3. And probably, I can tell you that this company, at the end of September, fingers crossed, could achieve the same turnover at the end of last year, so around EUR 30, EUR 31 million sales. So it means that we are projecting I better say. We will get to the other, that is Cenacchi International. Cenacchi International is affecting from a different seasonality than last year, suffering the H1 but then recovering above all in the Q4. So, when we told you that we can close in the luxury contract between a range between EUR 75 and EUR 80 million, still is there.

Speaker #1: And probably I can tell you that this company, at the end of September, fingers crossed, could achieve the same turnover as at the end of last year—so around €30 to €31 million in sales.

Speaker #1: So it means that we are projecting better sales. With regard to the other, that is Cenaki— I mean, Cenaki is affected by a different seasonality than last year, suffering in the first half, but then recovering, above all, in Q4.

Speaker #1: So, I mean, when we told you that we can close in the luxury contract between a range of €75 and €80 million, that still stands. If I have to tell you now, my feeling is that we will do more or less the sales of last year—between €75 and €76 million. But we also have the target to achieve €80 million; it depends on what will happen by the end of the year, especially in Q4, and if we avoid some of the surprises we saw last year, like the postponement of some shop openings.

Andrea Sasso: If I have to tell you that now my feeling could be that we will do exactly more or less the sales of last year between EUR 75 million, EUR 76 million. We have the order also to achieve EUR 80 million. It depends what will happen within the end of the year above all in Q4, involving some possible surprising that we have seen last year of postponing some shop openings. We are recovering, and we have a good feeling keeping the promise from the second quarter, from the H2, keeping the promises that we said from the beginning. Still the range is between EUR 75 million and EUR 80 million with regard the order intake. We have seen in July and August also recovering, frankly speaking, in the residential area.

Speaker #1: But I mean, we are recovering, and we have a good feeling, keeping the promise from the second quarter, from the second half, keeping the promises that we said from the beginning.

Speaker #1: So still, the range is between 75 and 80 million. With regard to the order intake, we have seen July and August also recovering, frankly speaking, in the residential area, okay?

Speaker #1: Then let's see: September could be a Q3 where, even in residential, we'll be— in terms of orders, but above all in terms of sales— at least at the same level as last year, or even slightly positive. And you know that we're starting with minus 11 in the first quarter, minus 6 in the second quarter, in the residential. Now, probably, we can move more or less equal to Q3 last year, or even better.

Andrea Sasso: September could be a Q3, where even the residential will be in terms of orders, but the goal in terms of sales, at least at the same level of last year or even in slightly positive. As you know that we starting in a -11 in the first quarter, -6 in the second quarter, in the residential one, and now probably we can move more or less equal to Q3 last year or even better. With regard to saving and CapEx, I leave the stage to Alberto Bortolin.

Speaker #1: Then, with regard to savings and CAPEX, I leave the stage to Alberto.

Speaker #2: Thank you. Regarding cost savings, we continue in our work to check and control our expenditure—obviously in commercial activities, but also in consultant services and so on.

Alberto Bortolin: Thank you. About cost saving, we continue in our work to check and control our expenditure, obviously in commercial activities, but also in consultant services and so on. This half, we obtain a good result with the reduction in the organic perimeter, especially for a balanced activity for the fair of April. As I mentioned, we will check all the consultant expenditure and other activities, and because in our expectation is to continue to reduction and check the fixed cost. At the end of the year, we will wait an amount lower than the previous year. About the CapEx, this is an important year because we started with the building of Cenacchi, the most important investment to increase the capacity of Cenacchi. This year we will spend roughly EUR 7 million or EUR 8 million. The second investment in our group is Fubo.

Speaker #2: This half, we obtain a good result with a reduction in the organic perimeter, especially for a balanced activity for the fair in April. But as I mentioned, we will check all the consultant expenditure and other activities, because our expectation is to continue to reduce and check the fixed costs.

Speaker #2: So at the end of the year, we'll wait an amount lower than the previous year. About the CAPEX, this is an important year because we started with the building of Cenaki, the most important investment, to increase the capacity of Cenaki, and this year we'll spend roughly €7 or €8 million. The second investment in our group is Kubo, again because we want to increase also in this case the capacity and take inside some production activities.

Alberto Bortolin: Again, because we want to increase also in this case, the capacity, and take inside some production activities.

Andrea Sasso: Group activity also in that area.

Speaker #1: To improve productivity also in that area.

Alberto Bortolin: Yes, the expenditure is more than EUR 5 million this year. So at the end of 2026, total CapEx will be from EUR 13 to EUR 15 million. If we consider also last year was an important year investment, this is the most important, 2026, and we completed this program in 2027 and 2028.

Speaker #2: Yes, and the expenditure is more than €5 million this year. So, at the end of 2026, total CAPEX will be from €13 to €15 million.

Speaker #1: Okay.

Speaker #2: If we consider also that last year was an important year for investment—and this is the most important, 2026—we will have completed this program in 2027 and 2028.

Speaker #3: And I will only add to what Alberto said regarding the savings. You probably remember, Paola, that we announced along with the midterm ambition that we have been working on some savings from an organizational perspective. Since we had to face a managerial transition in a few companies, we are now accounting for, let's say, double heads for those companies. We had some plans for the foreign commercial subsidiaries and an overall attitude of disciplined cost management on marketing and initiatives.

Andrea Sasso: I will only add to what Alberto said regarding the savings. You probably remind, Paola, that we announced, along with the midterm ambition, that we will have been working on some saving from an organizational perspective since we had to face a geo transition. Few companies are now accounting for double, let's say, double head for those companies. We had some plans for the foreign commercial subsidiaries and an overall attitude of disciplined cost management on marketing and initiatives. Regarding marketing and commercial costs, of course, the quarter where you will see the highest possible visible effect, of course, is the second one, because traditionally, the H1 and the Q2 in particular with the Salone del Mobile.Milano is our spending season. So we had a more cautious attitude on spending for these trade fairs this year. We didn't mean that we reduced the square meters.

Speaker #3: So regarding marketing and commercial costs, of course, the quarter where you will see the highest possible visible effect is the second one, because traditionally the first half, and the second quarter in particular, with the Salone del Mobile, is our spending season. So we had a more cautious attitude on spending for this trade fair this year.

Speaker #3: We didn't mean that we reduced the square meters. We still participated with all the companies possible. We had a huge participation, but with a more careful, let's say, attitude with respect to the overall budget for the initiative. This delta, year on year, is more visible in the second quarter and won't be replicated in the second half.

Andrea Sasso: We still participated with all the companies possible. We had a huge participation, but with a more careful, let's say, attitude with respect to the overall budget for the initiative. This delta year-on-year is more visible in the Q2, won't be replicated on the H2. We will have the carryover for one.

Marella Moretti: We still participated with all the companies possible. We had a huge participation, but with a more careful, let's say, attitude with respect to the overall budget for the initiative. This delta year-on-year is more visible in the Q2, won't be replicated on the H2. We will have the carryover for one.

Speaker #3: We will have the carryover from one organizational transition that we completed with the approval of the 2025 balance sheet for the company, so we will have a saving from one management person that is now not working anymore with the group in one company. That, of course, is important, but we won't have new initiatives like that for the second half.

Marella Moretti: Organizational transition that we completed at the approval of the 2025 balance sheet for the company. We will have a saving from one management person that is now not working anymore with the group in one company. That, of course, is important, but we won't have new initiatives like that for the H2. Regarding the foreign subsidiaries, we are working on it, so probably the delta you can count and see on fixed cost and commercial cost for the H1 won't be totally replicated for the second one because, of course, it's more visible in the spending season that traditionally is, for us, the H1 and Q2.

Speaker #3: And regarding the foreign subsidiaries, we're working on it, so probably the delta you can count and see on fixed cost and commercial cost for the first half won't be totally replicated for the second one, because of course it's more visible in the spending season. The tradition is for us the first half and second quarter.

Speaker #1: So, all the actions that we mentioned in the Ambition Midterm, we are expecting—I mean, fair, we have seen during the presentation—we are participating everywhere. But as Marella is saying, in a more, I mean, sensitive way—so, saving on fair, saving in consultancy, as Alberto was saying. Then, you know that in the one-company model we have for a certain period of time, a double COO, okay? That finished the activity, I mean, in April. So, I mean, we will have a saving in model from this double position.

Andrea Sasso: All the action that we said in the ambition midterm, we are acting.

Marella Moretti: Are ongoing, yeah.

Andrea Sasso: In fair, you have seen during the presentation, we are participating everywhere, but selling in a more sensitive way. Selling in fair, selling consultancy is a better selling. Then you know that in one company model, we have, for a certain period of time, a double CEO. That finished the activity in April.

Marella Moretti: In April.

Andrea Sasso: We will have a saving in Modar from this double position. Actually, in Meridiani, we have a double CEO and presidency that will end at the end of this year, and then we are acting also from this point of view. Still not effective, but we will have. Then you remember that we start also to be selective also on shops and stores we have. In Milan, we closed, after the Salone del Mobile.Milano, a store of Gervasoni.

Speaker #1: Actually, Meridiani, we have a double CEO in the presidency that will end at the end of this year, and then we are acting also from this point of view—still not effective, but we will have. Then, you remember that we started also to be selective on the shops and stores we have, so in Milan, we closed, after the Salone del Mobile, the store of Gervasoni. Okay, having one—we had two—and then we are acting also to close the store within the end of the year, also one in London.

Marella Moretti: Yeah.

Andrea Sasso: Okay? Having one, we had two. Then we are acting also to close the store at the end of the year, also one in London. We are following all these activities in a proper way.

Speaker #1: So, we are following all these activities in a proper way.

Marella Moretti: But in terms of numbers, those commercial activities are ongoing.

Speaker #3: But in terms of numbers, those commercial activities are ongoing, and of course the new cost is included in the numbers for 2026, except for the carryover of the no more double heading model.

Andrea Sasso: Sure.

Marella Moretti: And of course, you consider in the numbers for 2026.

Andrea Sasso: Yeah

Marella Moretti: Except for the carryover of the no more double head in Modar.

Andrea Sasso: Yes, exactly. The financial result, we will see the result in the coming months. It is not immediately, for example.

Speaker #1: Yes, exactly.

Speaker #2: The financial result—we'll see the result in the coming months; it's not immediate. For example, in Meridiani, we'll see the result next year, and also for some stores—for example, London—we are closing the store, and so obviously the result, we'll see it in the coming months.

Marella Moretti: Yeah

Andrea Sasso: In Meridiani, or we see the results this year.

Marella Moretti: Yes, F&M.

Andrea Sasso: Also for some stores, for example, in London, we are closing the store, and obviously the result we see it in the coming months. But it is a good indication that we are acting now in order to get a better result in the future. We have done this indication for the midterm ambition. For sure, we do not get all the benefit just in 2026.

Speaker #1: But this is a good indication in order that we are acting now, in order to get a better result. I mean, in the future, we have done this indication for the midterm ambition. For sure, we don't get all the benefit just in 2026, but we have to act now to achieve a good result also in 2027 from a fixed point of view.

Marella Moretti: Yes.

Andrea Sasso: But we have to act now to achieve a good result also in 2027 from a fixed point of view.

Speaker #4: Okay, thank you for all these details. Just a follow-up coming back to the order intake—that was my initial question—and in particular, the relationship with Kering. Can you elaborate on that, just to understand whether, say, the business is restarting? Are they going to, let's say, give you some of the new store formats to be opened in the next few quarters? So what's the relationship there?

Paola Carboni: Okay, thank you for all these details. Just a follow-up, coming back on the order intake, that was my initial question. In particular, the relationship with Kering. Can you come back on that? Just to understand whether, say, the business is restarting, they are going to, let's say, give you some of the new store format to be opened in the next few quarters. So what is the relationship there? Thank you.

Speaker #4: Thank you.

Speaker #3: Yes, the company as Andrea mentioned before, modal, there is the one that has a strong relationship with caring, is confirming its expectation for this year in terms of openings, and those openings which is of course very reduced with respect to the level of business that we had in the past, so accounting for from five to seven million euros this year, with this particular brand, but within this revenue there is also the working that they're doing on the new formats, actually on a couple of different new formats that they are testing in two different locations, and this is the kind of format that they are working on to replicate during next year, so of course they are also quoting for next year, next year openings, so the current management expectation is to be able to increase this result in 2027 with this specific client, but we are still in the process of quoting the project and discussing with the team from the client's perspective, that they are on their selves working on the pipeline on new openings.

Marella Moretti: Yes. The company, as Andrea mentioned before, Modar, that is the one that has a strong relationship with Kering, is confirming its expectation for this year in terms of openings. And those openings, which is of course very reduced with respect to the level of business that we had in the past, so accounting for from EUR 5 to EUR 7 million this year with this particular brand. But within this revenue, there is also the work that they are doing on the new format, actually on a couple of different new formats that they are testing in two different locations. And this is the kind of format that they are working on to replicate during next year. So of course, they are also quoting for next year openings. The current management expectation is to be able to increase this result in 2027 with this specific client.

Marella Moretti: But we are still in the process of quoting the project, and discussing with the team from the client's perspective in terms that they are on their self working on the pipeline on new openings. On top of that, as Andrea mentioned before, the company was successfully able to diversify this year the revenue, increasing its relationship with other brands, which are on their end, again, working on the pipeline of new openings for 2027. So combining all of that, we haven't confirmed project yet, but the feeling is good for looking into 2027, counting also on a more diversified client base.

Speaker #3: On top of that, as Andrea mentioned before, the company was successfully able to diversify its revenue this year, increasing its relationships with other brands, which are, on their hand, again working on the pipeline of new openings for 2027. So, combining all of that, we haven't confirmed projects yet, but the feeling is good for looking into 2027, also counting on a more diversified client base.

Speaker #1: Yeah, but I mean, I want to be quite clear from this point of view. Despite avoiding saying the name of the customer, I mean, with this customer in 2024, we achieved around €30 million in sales. In 2025, it was €11 million. This year, it will be around €6 million. Okay, despite that, we are working very well in order to continue to improve in the future. By the way, Modal will move from €31 million last year, probably to around €40 million this year. And this, I mean, is showing the great activity of the team, recovering with new customers. Then, we hope for sure that one day this nice customer will recover. Actually, they are closing more shops than opening, we know, but despite this, I want really to underline that the activity with new customers is giving great life to Modal again. And not only that, I mean, we are also risking less, because the percentage and the dependency from one single customer is much more reduced.

Andrea Sasso: Yeah. I want to be quite clear from this point of view, despite avoiding to say the name of the customer, in this customer, in 2024, we achieved around EUR 30 million sales. In 2025, it was EUR 11 million. This year it will be around EUR 6 million. Okay? Despite we are working very well in order to continue to improve the future, by the way, Modar will move from 31 of last year, probably around EUR 40 million this year. And this is showing the great activity of the team recovering with new customer, and then we hope for sure that one day this nice customer will recover. Actually, it's more closing the shops more than opening, we know.

Andrea Sasso: But despite this, I want really to underline the activity of new customer is giving a great life to Modar again, and not only, we are risking less also because the percentage and the dependency from one single customer is much more reduced.

Speaker #4: Okay, thank you very much. Ciao a tutti. Thank you, Paola, for this question. We currently do not have any questions in the queue, so we'll wait just a few moments to give everyone the opportunity to ask a question.

Paola Carboni: Okay. Thank you very much.

Operator 2: Thank you, Paola, for these questions. We currently do not have any questions queued, so we will wait just a few moments to give everyone the opportunity to ask a question. Thank you. As there are no further questions, I will now give the word back to the speakers for any final comments before bringing this presentation to a close. Thank you.

Operator: Thank you, Paola, for these questions. We currently do not have any questions queued, so we will wait just a few moments to give everyone the opportunity to ask a question. Thank you. As there are no further questions, I will now give the word back to the speakers for any final comments before bringing this presentation to a close. Thank you.

Speaker #4: Thank you. As there are no further questions, I will now give the floor back to the speakers for any final comments before bringing this presentation to a close.

Speaker #4: Thank you.

Speaker #1: Thanks a lot. I mean, thank you for listening to us, and see you next time. Thank you.

Andrea Sasso: Thanks a lot. Please continue ask, and see you next time. Thank you.

Operator 2: This presentation.

Operator: This presentation.

Speaker #4: This presentation

Andrea Sasso: Thank you, everyone.

Speaker #2: Thank you everyone.

Speaker #4: This presentation will now come to a close. Thank you.

Operator 2: This presentation will now come to a close. Thank you.

Operator: This presentation will now come to a close. Thank you.

Paola Carboni: Goodbye

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