All right. Hello everyone, and thank you for continuing to join us throughout the day here at the Lytham Partners Fall 2026 Investor Conference. Again, my name is Robert Blum, Managing Partner at Lytham Partners. Up next, I will moderate a brief fireside chat discussion with Giulio Bonazzi, the Chief Executive Officer at Aquafil, a pioneer of the circular economy revolution within the textile sector. Mr. Bonazzi, thanks so much for joining us today. Thank you, Robert. Nice to be with you. All right. Let's start off high level. For investors who are new to Aquafil, talk about the business, the main markets you serve, and how ECONYL is the long term strategy for growth. Well, Aquafil, since 1970s or so, is a producer of nylon yarns and polymers, and today we are a global market leader in the nylon industry. In fact, we are serving as the largest and most important supplier of the nylon, so-called BCF market, which means end of production carpet yarns. So, carpets are an important product, particularly in your beautiful country. The second business is textile yarns, so we are servicing customers that are going to the fashion business. So companies in this case like, I don't know, the Pradas, the Guccis, and these kind of customers, but not only. The third business is polymers and engineering plastic. Carpet is representing around 72% of our revenues. Our revenues consolidated are standing between $550 million - $600 million on a yearly basis, textile 17%, and polymers 11%. Also, it's important to notice that Aquafil is a global market leader because we have production and sales in the three main continental areas. In fact, we like to say about ourselves that we are a local company because we try to produce and sell in Europe. We try, of course, to produce and sell in the U.S. and North America, and we are trying to do the same in the Asia Pacific region. To give you some numbers, Europe is accounting for about 54% of our total revenues. It means that the rest of the world is almost 50% of the revenues, being U.S.A., the largest market with about 30% of sales, and Asia Pacific, the remaining 16%. Also, Aquafil has been always very much investing a lot of money in technological development, and we are leading by far in terms of product development. We have more than 20,000 different SKUs, but our engineering team has been so strong and good that we have developed along the years a lot of different technologies, like new polymerization systems and new yarn extrusion systems. Last but not least, ECONYL. ECONYL is, we like to call it, regenerated nylon yarn or polymer that is coming entirely from waste, and it has exactly the same performances and characteristics of the nylon coming from petroleum. But it comes entirely from waste. This, of course, is a major competitive advantage that our company has developed during the last 15 to 20 years. Let's talk a little bit about that competitive differentiation. Walk us through how ECONYL turns waste into regenerated nylon and explain what makes your technology and production capabilities difficult to replicate. Well, as I said, ECONYL comes entirely from waste, so we have to go around the world and rescuing, we like to call this a rescue activity, waste. Waste that can be pre-consumer or post-consumer. So when we speak about post-consumer waste streams, we are particularly involved in the collection of fishing nets and of carpets. Carpets that are being collected, and now the major state is in California. While fishing nets, we are collecting by ourselves or buying from all over the world. When we speak about pre-consumer waste, we of course are collecting, let's say, unfinished carpets or carpet waste as well as textile. So we are making a so-called textile to textile recycling. This is, of course, already a first complication because, yes, you are right, you can think that the world is plenty of waste, but of course, we need nylon waste to make new nylon products. Also, you do not find it around the corner. You have really to develop very dedicated teams. We have to develop long-term relationships, and you have to establish yourselves in many different places. In fact, we are collecting carpets in California, but also fishing nets along Scandinavian countries, in Thailand and Southeast Asian countries, as well as India and China. All really it is a global activity. Then the technology of, let us say, we call it depolymerization, so of breaking the bonds of the waste which is coming in the form of polymer. This is relatively easy, apparently, but in reality is extremely complicated. This technology has been completely developed by ourselves, by our engineering team, and also the plant has been built completely by our engineering team. This is very important for protection of our intellectual property. It takes just a little amount of energy and of, let us say, a small amount of a catalyst, and this, of course, is also securing a very, very low carbon footprint for the ones that are also looking not only to have something which is recycled, but also something which is heading toward climate neutrality. Once, of course, we have decomposed the waste and we have returned to the original building blocks, which is the monomer, or called caprolactam, we can make new polymer or new yarns out of the polymers. For the customers, magically, nothing changes. For them, they are just switching from a normal nylon yarn or polymer to ECONYL without having to change anything in their company or in their workshop. All right. Very good. On the earnings call, you highlighted new ECONYL projects, including, I think it is Arc'teryx, along with opportunities in carpets and polymers. Where are you seeing the strongest customer interest, and how do those projects develop into meaningful revenue? We are actually working with, in our opinion, of course, the best customers around the world. Companies like Interface, when we are speaking about carpets, or Milliken, or Tarkett, or really the best carpet companies in Europe, North America and Asia, Japan. When we speak about fabrics, so the nylon textile yarn divisions also, we are working with very strong and beautiful companies like Patagonia. Recently also, we have been able to strike a very important goal, achieving a strong relationship with Arc'teryx. This work has started about 3 years ago, and we are particularly proud to say that Arc'teryx has not only embraced ECONYL as recycled nylon product, but also they are really designing new generations of garments that are heading towards circularity. Because, of course, the yarns and the fabrics are important, but also the way you are making the garments is important for giving a long life to the product. Then finally, in case it is not, let's say you cannot repair it anymore, you can take it back and to recycle it. Lately, we have stepped back because we were present in this industry in the polymer and engineering plastic. So on top of our strong growth that we are seeing in carpet and textile, we are also seeing a very strong interest for the people buying polymers and engineering plastic for injection molding or for the extrusion business. This is something that gives us a lot of opportunities for the years to come. I would say equally in all the three business activities, there are strong opportunities. All right. Let's talk a little bit about some of the financial performance here. Your first half, first six months here of 2026, EBITDA increased despite lower revenues and relatively flat volumes. What has changed within the business to make that possible, and how should investors view the second quarter cost pressures within that broader improvement there? Well, first of all, the little lower revenues are driven by lower prices as a consequence of, let's say, a raw material price that has diminished in comparison with last year's. So volume-wise, we are very similar 2026 - 2025, and this is very important to remark because, of course, the recent geopolitical turmoils and situations are certainly not helping for building confidence in the market. But the reason why you are seeing, and you will see in the future, our results growing is because we are paying a very strong attention to cost containment. We have gone through, during the last 24 months, a major cost reduction activity, first in direct cost and during 2025, particularly in indirect cost. Just to give you some numbers, despite we are holding revenues to the same level or very similar levels, our number of associates, they have diminished from 2,900- 2,300. This, of course, is not only helping us to absorb pressure from inflation, but also helping us to improve our margins. Still for the years to come, we are still keeping our focus and our utmost attention to keeping costs under strict control. In this case, we are, let's say, targeting and also launching some investments for reducing energy consumption. Obviously, with the recent hikes in energy, particularly in Europe, these activities are extremely rewarding, okay? But also through higher automation levels. So we are continuously introducing new generation of robots and automation into our plants. So this is, of course, helping to, let's say, keeping margins healthy and possibly to increasing them, despite the market demand is not that strong. All right. Very good. You explained that sort of the shift towards overseas raw materials and ECONYL feedstock had absorbed working capital. With that sourcing transition largely complete now, how should the relationship between EBITDA, cash flow, and debt reduction improve? Yes, it has. This is something that deserves a little more time to explain because here in Europe, our suppliers, they have almost disappeared. It is not just because we want to buy cheaper that we are going elsewhere. When I'm saying elsewhere, we are buying mainly raw materials other than waste from U.S. and China. But this is because 65%-70% of European chemical monomer capacity has disappeared in the last 24 - 36 months, and this trend is not over. So of course, you have to find, let's say, raw materials elsewhere. That's why we have created a very flexible platform which is capable of welcoming raw materials from Europe or from Asia or from North America, depending upon where they are available and where the price is more convenient. Clearly, when you are buying from Germany or Holland and transporting it into Italy, the time that takes the material to come from these countries to our country is much shorter than when you are buying from U.S. and China, when you have, of course, several weeks of transit time because you have to cross the ocean. This has, let's say, during 2025, absorbed a lot of working capital. So apparently, despite the higher EBITDA and cash flow also during 2025, the net debt reduction has not been so strong as maybe someone was expecting. This, let's say, process is almost completed, so there are eventually some marginal volumes that can still be shifted from, let's say, local companies to overseas one, and that's why, on the contrary, we are starting now finally to seeing debt reduction more in line or even stronger than the higher cash flow generation that we are capable to, let's say, realize. All right. Very good. Maybe a final question here. As debt does come down, you've suggested company could have more flexibility to either accelerate automation or maybe consider acquisitions. How would you prioritize those opportunities, and what would need to happen before you begin to pursue them? Of course, once your net debt and EBITDA ratios are returning to levels that are closer to two, at this point, you can also start, how can I say, accelerating certain projects like, let's say, accelerating automation processes where there is a lot of gains to achieve. Or you can start considering also consolidating the business or eventually also stepping into different markets where, let's say, growth are larger than the ones that we are seeing, particularly in Europe for our traditional ones. That's why we are working very, very, very, let me say three times, very hard in order really to keep cost under control and continuously developing new activities and new products with the best available customers like Arc'teryx, but not only. We will see the priority. Of course, it depends by the opportunities that may arise. Of course, we will target something which makes a lot of sense for our company. Fortunately, we still have a lot of projects to realize in order to help us to continuously reduce cost during 2026, 2027, and 2028. But also, if the market would put us in a condition to make something even more interesting, we would consider it. All right. Very good. In the final minute here or so, any final takeaways for investors? Well, Aquafil is, of course, not operating in artificial intelligence. We are not present into the army or weapons industries, which are, of course, in this moment, very much on fashion. We are working with fashion, which is not bad. At the end of the day, we can really develop beautiful products for a market which certainly will not be suffering for long. Because at the end, the number of people living in the world is growing, the income per capita is growing, so the appetite for beautiful product, it is certainly not decreasing. So, stay tuned because Aquafil is really working hard to make nylon business very profitable in the near future. All right. Very good. Well, we will leave it there. Thank you so much, Mr. Bonazzi, for your participation in the conference. Thank you, of course, to everybody for watching here. If there are any questions or you would like to schedule a meeting with Aquafil, send me an email. That is blum@lythampartners.com. To learn more about Lytham, make sure you visit our website or follow us on LinkedIn or YouTube to stay connected on future events here. So we hope you all enjoy the conference here, and have a great rest of your day. Again, Mr. Bonazzi, thanks so much. Thank you, Robert.