Christian Frenes

Christian Frenes asked if the announced provisions capture all risks to European operations from increased pricing pressure, for a breakdown of the EUR 6.5 billion cash out (specifically the cash portion of the EUR 1.3 billion workforce reductions), and for the Finco's cash investment in 2025 and expected for 2026.

Answer

CFO João Laranjo stated that regular closing processes consider risks like residuals in Europe, but no exceptional provisions for European pricing were made. He clarified that restructuring cash out was EUR 1.3 billion in 2025 and is expected to be around EUR 1 billion in 2026. He deferred detailed Finco cash investment figures for 2026 to the full-year earnings call.

Christian Frenes asked if the announced provisions fully capture all risks to European operations, particularly from increased pricing pressure. He sought clarification on the cash component of the EUR 1.3 billion workforce reductions within the EUR 6.5 billion cash out. Lastly, he requested details on the Finco's cash investment for 2025 and expectations for 2026.

Answer

João Laranjo, Chief Financial Officer, stated that the listed provisions are what has been accounted for, and while regular closing processes consider residual risks in Europe, there are no exceptional provisions for European pricing. He confirmed that the cash out for restructuring was EUR 1.3 billion in 2025 and is expected to be around EUR 1 billion in 2026 (slightly lower). He deferred detailed Finco cash investment figures for 2026 to the full-year earnings call.