Fabbrica Italiana Lapis ed Affini (FILA) investor relations material

Executive summary

• Q1 2026 results aligned with budget, reflecting a shift in business seasonality to mid-year quarters and the consolidation of Seven Group, which contributed low revenue and negative EBITDA in Q1.

• Organic EBITDA increased, with profitability at satisfactory levels despite negative tariff impacts and euro weakness.

• Q1 2026 revenue was €126.3 million, down 7.3% year-over-year, with organic contraction in Europe, North America, and Asia, partially offset by growth in the Rest of the World.

• Gross operating profit (EBITDA) fell 26.0% to €16.7 million, with margin impacted by lower sales and negative currency effects, but partially mitigated by cost containment and improved sales mix.

• Net profit attributable to owners of the parent was €2.1 million, but adjusted for non-recurring items, profit rose to €4.5 million, up 400% year-over-year.

Financial highlights

• Core business sales (excluding Seven) were €120 million, down 7% on comparable FX basis due to order shifts in North America and Europe; total Q1 2026 revenue was €126.3 million, including €6.3 million from Seven Group.

• Adjusted EBITDA was €16.7 million (including -€3.4 million from Seven Group), down 26.0% year-over-year; excluding Seven Group, adjusted EBITDA was €20.2 million, down 10.8% reported but up 3.1% at constant currency and tariffs.

• Adjusted net profit (excluding Seven) rose to €7.4 million from €0.9 million in Q1 2025, mainly due to lower net financial expenses and positive FX impact.

• Free cash flow to equity was -€56.7 million; excluding Seven Group, it improved to -€48.9 million from -€55.5 million in Q1 2025.

• Net financial debt (including IFRS 16 and hedging) was €304.4 million at March 2026, up from €230.8 million a year earlier, mainly due to the Seven Group acquisition and seasonal working capital needs.

Outlook and guidance

• 2026 guidance unchanged: double-digit growth in revenue and adjusted EBITDA expected, with free cash flow to equity projected at €40–50 million.

• YTD order trend in line with best expectations; confidence in organic growth and sector leadership consolidation.

• Macroeconomic uncertainties persist, including US tariff policy, Middle East crisis, and inflationary pressures, but broad geographic diversification and business resilience support a positive outlook.

• Dividend payout ratio expected at 20%-40% in the ordinary course.

• New sales policies and operational streamlining are planned to support recovery in revenues and margins.