Nexi Spa Azioni Ordinarie

Good afternoon. This is the Colu School Conference operator. Welcome and thank you for joining the NEXI First Half 2021 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Paolo Bertoluzzo, CEO of Nexi. Please go ahead, sir.

Good morning. Good morning to all of you. This is Paolo, and welcome to our first half 2021 results call. As usual, I'm here with Bernardo Mingrone, our CFO, and Stefania Mantegazza, who is leading our investor relations activities. In the session today, in our presentation, most importantly, we will be covering, as usual, the first alpha volume dynamics and NEXI Italy results, if I may say that. So the first session is going to be focused on the NEXI of yesterday, but it is still the NEXI that is relevant for the first alpha results for 2021. And then actually we'll give you a short update on where we are on progress on the integration of NETS and SIA. And then we will a little bit switch gears. Bernardo will cover a summary of NETS results in the test out of the year. And then we'll give you a flavor of how the combined NEXI and NETS entity would look like the first half of the year if it was already a one single company and then i will come back uh at the end with uh our updated and upgraded ambition for 2021 is a new aggregated entity let me jump to page three where uh as usual we've summarized the key messages from today uh three key messages As far as volume dynamics are concerned, we continue to see an acceleration in volumes that are by now well back to above pre-COVID levels. Over the last couple of weeks, we have seen all macro sectors now growing versus 2019, including also the more travel and leisure-related sectors. Italian cards have been growing over the last few weeks above 20% year over year, and we now have double-digit growth across all sectors. In parallel, also, international cards are now, foreign cards are now accelerating. They're still negative, but actually accelerating very fast. Last but not least, as you will see, we have a specific page. We see a confirmed acceleration of cash-to-digital payments shift across countries. I would say most of the sectors. Second key message, our financial performance in the second quarter have been strong and accelerating versus the first quarter. We've been growing revenues in the quarter by almost 23% versus last year, actually 6.7% versus 2019. So there is also material growth versus pre-COVID levels. EBITDA has been growing almost 27% versus last year, actually 10.6% versus second quarter, 19%, confirming operating leverage working in our favor. Third key message, we are continuously progressing and consistently progressing in creating the European paytech leader on the back of the combination with NETS and SIA. As you've seen, we have strong SEA and NET standalone performances in their geographies. The NET deal has been closed on the 1st of July and is now one company, while next year we expect to receive regulatory approvals by September, October, and we expect to close in the fourth quarter of this year. Overall, the transformation is well on track. Actually, we're a little bit ahead of of where we thought we would have been. And as we're doing the numbers with more detail, we start to see an upside on the announced synergies of at least 10% in the middle long term. Overall, as we combine these three messages, we're actually increasing the ambition for the year, for the second half of the year, so for the full year as well. Obviously, we're now talking about the combined NEXI and NETS that will give us a larger and more diversified base as well. As far as revenues are concerned, we expect to see an acceleration in the second half anywhere in between 11% and 13%, bringing the total for the year at around 10%. While EBITDA should grow in the second half of the year at around 13% to 16%, while overall year should be anywhere in between 11% to 13%, which is higher versus where we were as next year's standalone when we talked in May. Now, let me jump to the volume dynamics. I will cover only three pages. We put everything in the document as always, and we also have in the backups the comparisons with 2020, but I would really want to cover three pages here. So if we jump to page seven, page seven gives you a focus on merchant services and what we see in terms of acquiring volumes here. The total has been over the last week at around 14%. received last night, the most recent data is also anywhere between 10% to 15%. So good growth. As always, we start with a split in between Italian cards and international cards. Italian cards have been growing at around 26%, 25% in the recent period, and this is consistent over the last few weeks, while you see a stronger and accelerated, I would say, acceleration in particular in June and July from the international cards, the cards of citizens incoming into Italy from other countries. So consistent growth, double-digit growth on Italian cards and a real acceleration of international cards as well. If you now jump to page nine, it gives you the usual bisector I think the picture is fairly clear. We see a consistent, accelerated growth in what we call basic consumption sectors, from groceries to finances to utilities to basic services more in general. Over the last few weeks, we've been moving around 30%, 31% in the last week. We've seen a recovery of what we call discretionary services, discretionary products, which is the gray line here. that came back into the positive around June and was at around 8% in the last week. And last but not least, and this is probably the most positive and unexpected news over the last few weeks, we've seen a very, very, very fast recovery in the high-impact consumption sectors that went into positive space over the last couple of weeks. In here, we've seen a very, very material acceleration, especially when it comes to restaurants, bars, hotels, and so on, which means that people are really, really keen to come to a more normal life as restrictions are released. Final page that I want to cover on volumes, page 10. On page 10, as we've done in the past, we try to highlight elements that give comfort on the fact that we are seeing an acceleration of the shift from cash to digital in Italy. On the left, you see, and here we're basically taken out from the numbers, the contribution from foreign cards. So we're talking about Italian cards only so that we neutralize the effect of international travel being still limited, even as you have seen, it's now recovering faster. On the left, you see the macro categories dynamic. You see an acceleration basically across 21 and is now moving anywhere between 30 to 40%. Discretionary consumption recovering throughout the year and now a double digit as well, 19% in the last week. And high impact consumption, if you remove the effect of the foreign cards, is actually also into double-digit growth actually in the last week and with a consistent recovery at around 23%. On the right, we have highlighted the dynamics in more specific sectors and more granular sectors to give you a real perception of what is happening in terms of shift from cash to digital. You can read them yourself, but on basic consumption, we have the usual grocery sector, which is actually the most important here, growing in between 20% and 30%. But actually you see sectors like doctors and dentists that are sometimes a bit newer to digital payments growing 70% to 80%. When it comes to discretionary consumption, you see certain sectors, in particular I would say also the business-to-business sectors growing at 50%, 60%, 90%. And when it comes to high-impact consumption sector, I think this is particularly telling in terms of how the society is coming back or is trying to come back to more normal life, where you see hotels coming back into double-digit growth, entertainment, despite a lot of limitations, still in place, 20%, and restaurants with an outstanding 35%. So all in good volume dynamics, I would say faster than expected growth in certain areas and confirmed acceleration of cash-to-digital migration in Italy. Let me now hand over to Bernardo that will take us through our results again as Nexi equally alone for the first half.

Thanks, Paolo. Good afternoon from me as well. Starting on page 12, we'll go through the usual set of slides with regards to financial performance, starting with revenues. I would highlight on this slide what Paolo just said, i.e. a strong quarter, a strong first half with volume recovery fueling the growth in revenues. What I would highlight is the margin expansion we've seen compared to last year. So two percentage points pick up from 54% last year to 56% this year. The progression is also clear if you look at first quarter this year compared to second quarter this year where we have picked up a similar margin. Overall, for the first half, we have a 55% margin which is in line with this progression I just outlined. So a pickup in revenues which follows the growth of revenues and a margin which is also being helped by what we will see with merchant services and cards and digital payments in terms of the mix we have seen in terms of these volume recoveries. So on slide 13, if we go on to merchant services, here as well we have the strong growth in the quarter in terms of revenues, 25% increase. This is against a quarterly increase in volumes of approximately 34%. Approximately two-thirds of our revenues in merchant services are volume-driven and therefore the growth in revenues is slightly lower than the growth in volumes, however, more than proportional. And you've tried to highlight this in the comments on the right. What we've seen in the quarter are two mixed effects which are positive. The first one is that sales, so cards being used at POS terminals rather than for withdrawing cash from ATMs, has grown 22% compared to the average growth of overall managed transactions, which was 16%, so positive mixed effect there. The other positive mixed effect is on the composition of volumes at terminals. So compared to LACA, SMEs have grown more. We see that 28% growth in terms of SMEs, which outperform the overall growth in point-of-sale volume growth. The other highlights of the quarter, indeed for the first half of this year with regards to performance merchant services and solutions is The ongoing and increasing demand for omni-channel solutions, so our merchants asking for ways to make sure they can accept payments through all of their distribution channels seamlessly. An acceleration of our MPOS proposition, so to counter also some new entrants in the markets, which is giving us good results, in particular in certain verticals, for instance, I'd say restaurants or micro-merchants in general. And e-commerce, which has both grown very healthily, 54% growth compared to the first half of 2019. The comparison with 2020 is obviously impacted by the severe lockdown we had last year in the first half, which obviously created a huge surge in e-commerce volumes, but still growth compared to last year, 15%. but also in terms of revenues, which is driven by a greater, let's say, penetration or greater demand for gateway activations, for instance, in our example here, which are twice what they were in the first half of 2019. Overall volumes are still slightly down compared to 2019, so we're not at pre-COVID level in terms of value of transactions. Indeed, we are in terms of number of transactions, and that's clearly the impact of foreign cards, which is still not back to where it was Moving on to slide 14, we have a similar picture in terms of cards and digital payments. I won't comment on the volumes. You have the data there. We're pretty much back to pre-COVID levels also in terms of value of managed transactions, and that's because obviously foreign cards don't impact on this value of transactions number. So less tourism and I think less impact from tourism. But what we'd like to highlight is, again, a positive mix effect within cards and digital payments, which is twofold. I'd say one, driven by commercial cards, so as people travel for business more than they used to in the past because of lower restrictions, we have a benefit. Profitability on these cards is roughly, I'd say, three times that of a normal card. And the faster or increasing pace of growth of international debit, again, the international debit product for us is more profitable in the uh... standard national debit product approximately four times more uh... outside three times more than four times more for uh... commercial card uh... overall we have a strong growth and install base and this is a mix of of of uh... of effects uh... most importantly new clients we've imported a new client uh... and we have new value-added services which were uh... which were introduced into market in the first half of this year which have helped uh... this uh... grow this uh... grow this number uh... Page 15 on digital banking solutions, less impacted overall by COVID, more helped, I would say, by project work to help a couple of our clients integrate the acquisition of UBI, but otherwise a generalized increase in revenues throughout the four divisions of digital banking solutions. Slide 16 on costs. As you know, as we saw in the first quarter this year and we're expecting for the full year, we have a bounce back of costs, which are basically driven by the bounce back in volumes I've just spoken of. And also the fact that we are now accruing variable compensation to budget compared to last year where we zeroed it because of the negative impact of COVID on profitability. I would highlight that notwithstanding all of this and, you know, basically anticipating something that Paolo will then say with regards to guidance for the year, I would just highlight how there is strong cost control at NAXI, and we still remain committed and will deliver costs for 2021, which are below 2019 level. And this, I think, is worth of note. given that compared to 2019, we're managing 25% more volumes in terms of number of transactions, which is what drives the variable component of our cost base to our outsourcers. And we have approximately 80 FTEs more than 2019. So notwithstanding this greater cost base or this greater volume, this base that we manage, costs will be below 2019 levels. The other point maybe that is worth highlighting, and this is again a byproduct of one of the transactions we've announced, is that part of the growth in variable costs for us is processing costs of more volumes, and those are processing revenues for SIA, which will be merged into NEXI later this year, so revenues for SIA. On slide 17, on CAPEX, we are roughly flat compared to last year in line with the guidance for the year, I'd say. only highlight how the growth in ordinary CapEx is essentially tied to the growth in volume. So last year we were buying a few less POS terminals given the lockdown. And I would say the growth is primarily driven by that 5 million growth from 40 to 45 million euros. But overall, 12% of revenues are pretty much in line with expectations for the year. On slide 18, I think here what I would highlight is how we are approximately three quarters of the way done with our transformation program. Here we've had the opportunity to basically revise the transformation program and secure savings of approximately 40 million euros compared to the additional 80 million we still have to spend. And that's thanks to the integration which will happen with SIA. So we already have an on-issuing platform which we don't have to build anymore and that's how we're coming by these savings. Which means we're actually further down the transformation and actually if I normalize for that we're probably 85% done which is good news because it means we can focus on integration of NETS and SIA. Slide 19 is the usual slide we show on what's going on below EBITDA. At NEXI, we have flat, I would say, transformation costs around 10 million euros, 11 million euros in the first half this year. Three-quarters or two-thirds, I'd say, of this is related to YAP. The rest is just pure transformation. And then on the right, we have a bridge between transformation costs and overall costs below EBITDA. And you can see that the 70 million euros that take us to minus 80 million euros are all, I would say, M&A driven. So it's... advisory costs, refinancing costs, and integration costs related to nets and CL, which take us to minus 80 million. And then we have a non-cash cost of 15 million euros, which is borne by Mercury UK, the former parent company, and is just close to our P&L, but is netted by an equal and opposite contribution by Mercury and is a legacy of the IPO back in 2019. 2020 shows us a bridge of normalized net profit from the reported amount just shy of 50 million euros to 100 million euros once we normalize for the non-recurring items and adjust for a number of other items to be normalized. For instance, interest expense, where we normalize for the new capital structure following the new emissions during the year. On site 20 on, we confirmed... Our strong cash conversion at 83%, roughly in line, slightly better than what it was last year, but hovering around the 80% mark. Slide 22, just a word on leverage. We're back to around three times. This is pre-closing of NETs. Obviously, when NETs and SIA closes, we'll be consolidating their EBITDA. Well, NETs is already closed, but from the third quarter, we'll be consolidating the NETs' financial indebtedness. and then CES and consolidating their EBITDAs. But in general, we have shown strong cash flow generation and ability to deleverage. Just a few notes we have to be spent on what happened during the quarter. We successfully refinanced NETS' indebtedness, as you know. We have had a constructive discussion with rating agencies and we're hoping for improvements following the closure of these transactions. And overall, The pre-tax cash coupon is now lower than what it was before. It's now 1.65%. In the face of an extended maturity profile, the weighted average maturity of our debt is now five and a half years after we extended the maturity of the IPO facilities. I'll hand the floor over back to Paolo for a few words on the progress on NETS in Seattle.

Thank you, Bernardo. Let me start with a broader update. Let me start with NETS that is now completely combined with NEXI. NETS performance has been strong in the first alpha. The close revenue is around 500 million euros, up 5.7% year-on-year and actually up 14.3% in the quarter. EBITDA consistently up 5% in the first half year-on-year and up almost 18% in the second quarter. As far as SIA is concerned, very strong performance there as well, plus 13.6% year-over-year in the first half, 18% in the second quarter. EBITDA even stronger, 28% in the first half year-on-year. Actually, 48% in the second quarter here. There are phasing effects across the year as far as we understand. So this is a bit exceptional, but we expect to see a strong performance on the CEO side for the full year as well. On this front, as far as closing is concerned, we already had EGM approval in June last We already received many, many regulatory approvals, such as, for example, Bank of Italy, Golden Share, and many others. We expect to complete the regulatory approvals at around September, October, and we will fine-tune the closing date. That should happen around the fourth quarter, also based on technical and capex optimization considerations. If we move to the next one, let me just... I remind you what our approach to the integration of the three companies is, and on the left you see exactly the same page that we did present back a few months ago. As we have decided in the past and confirming now, we will run NETS on a standalone basis for the time being, while we integrate as fast as we can NETS in Italy right after closing. We are already preparing for that. While in the meantime, we are launching and we actually started executing with NET a list of fast track joint initiative. Now we move towards a deeper and broader integration of the three companies later on and we will plan for that in 2022. In terms of key updates, every single Workstream is progressing Well, and especially in the case of NETS, we're moving from the planning phase into the execution phase. Just three highlights here. We have defined a new technology plan for the company, and we are now moving into the execution of what can be executed already with NETS. While, as you've understood from Bernardo, we already reshaped our cap expanding and optimized our cap expanding on the back of this new plan. As far as procurement is concerned, we already have an execution plan and we're already engaging with more than 20 suppliers in renegotiations. And last but not least, on the revenue side, we already have, with NET in particular, our commercial teams engaging on international and cross-border opportunities, and I was personally very pleased to see a few weeks back our first large merchant omnichannel and, most importantly, cross-country win across, I would say, most of the geographies from the Nordics through Germany to Italy. Second point, our scene execution is actually ahead of plan. We didn't plan a lot for 2021, but actually we're going to be delivering more than twice versus what we were expecting. And as we do the numbers and we look more bottom-up in detail, we are already alighting a potential more than 10% upside for in the mid-long term, on top of the $320 million cash recurring synergies that we have announced back when we did announce the deal. And as you understood from Bernardo, we have already achieved and secured the one-off CAPEX synergies from the combination with CF. On page 26, we just wanted to give you a very high-level view of how we have started running the company right after the closing of the combination with NETS. So this is the next NETS view and is obviously not exhaustive of our organization. Basically, if you look at the bottom part of the page, we will have the Italian team led by myself, that will continue to focus on the delivery of Italian growth, capturing all the Italian opportunities, focused on customer and performance. And here you see the three business units, and these are people that you met and you will meet again in our investor day over the next few months. On the left, you have the next team that will be focused on delivering on next transformation, next performance, and next customer focus, led by Klaus. Pettersson, formerly CFO for the company. And here you see the two business units, machine services and insurance security services led by Robert Hoffman and Torsten Jorgensen in continuity with the past. So you have basically these two big hubs accountable for delivering performance and growth. Myself and Bernardo as group CEO and group CFO will be participating together with Klaus and the team to make reviews and performance reviews, as you can imagine. Together with this, we've created a larger group governance. The group governance will be focused on transformation strategy and, if needed, M&A. And here, again, you see the three relevant units, which are Group Finance led by Bernardo, Group Transformation and Strategy led by Roberto Catanzaro, and the Technology group technology team that will drive the technology transformation and the technology governance and therefore the delivery of the technology synergies as well led by Giuseppe Dallona. But again, we're trying to focus as much as possible in continuity on delivering short and medium term while creating the company of the future through our transformation at the group level. Let me now hand over to Bernardo that will take us through an highlight of H1, NETS performance, and how the combined group would have looked like in the first half of the year.

Yes, thanks, Val. So this is the first time we introduce NETS into the picture of NEXI results, and this will be the standard going forward. Obviously, closing happened on the 1st of July, so our actual numbers are just for the first half are just NEXI, but on a performer basis, we have aggregated them to give you a view as to what the performance looks like for the enlarged group given closing happened, as I said, on the 1st of July. So starting with volumes on page 28, what we have done is given you a bit of a flavor with regards to total volumes of how overall SME acquiring volumes are now well above where they were for 2019 at NETS, 8% up compared to 2019. LACA is still suffering, obviously, given the higher proportion that NETS has compared to next in terms of certain verticals, for instance, travel, minus 23%, so still heavily impacted by COVID restrictions. If we net that out, we're back to pretty much where we were in 2019, almost pre-COVID levels. And on the issuing front, we have growth compared to, in June, 5% growth compared to 2019. Obviously, issuing has always been a concern when we've discussed nets with all of you guys with regards to the penetration maturity of the Nordic markets. and we're hoping to show, highlight how there is growth even in these more mature markets. We then move down the page. We have segmented between the two core geographies within NET, so Nordics and DAT, and opened up the volumes in the three categories we have normally shown you at NEXE. Long story short, I guess, my key takeaway here to highlight is how there's been a different phasing with regards to COVID-19. that has impacted, therefore, NETS in terms of their volumes and their results, different to Italy, that is, with most of the geographies in which NETS operates coming out of restrictions, essentially, at the end of June. I mean, I think maybe Denmark or some other geography came out a little sooner, but overall, I would say, largely skewed towards the end of the of the first half. And clearly last year, a completely different picture compared to Italy, where most of these countries took lockdown later than what happened for Italy. And therefore, a comparison, if we're looking at growth rates, both in terms of volumes and revenues, between next year and next, it's kind of an unfair comparison because, obviously, it's comparing different stages of the lockdown. Within the Nordics performance, what I would highlight is the green... line on top of the nordics again an area where as part of our due diligence as well and within discussions with investors we've always challenged with regards to the ability to to grow volumes and mature markets etc and what we can see here is i know groceries which is a pretty i'd say boring sector uh and less impacted by covid is still growing um at 23 percent if we look at the last data available which is roughly similar to what we're seeing in underpenetrated countries like italy and you saw the data earlier on when paolo was um commenting on NEXI's performance. The same holds true for DAC. Obviously, on DAC, you can see the overall value of transactions is significantly below where it is for Nordics or NEXI because of the higher exposure towards certain sectors, for instance, travel, as I was mentioning earlier, which has weighed on this. Moving on to how these volumes translated into revenues, notwithstanding COVID and all, we can see revenues growing by close to 6% in the first half of 500 million euros. And if you look at the quarter, the performance is higher, obviously 14% as we slowly went into releasing restrictions also in the next geographies. Overall, underlying EBITDA is up 5% in the first half, up 18% in the quarter. Just a word here on underlying numbers. As we had said back in February, back in May, and when we announce transactions, the underlying numbers are the ones we look at together with Klaus and the NETS team to evaluate performance and effectively normalize for a business CID which is subject to some one-off revenues which are declining in nature given their project nature and does not any longer include anything with regards to clients' loss or repricing which is instead much more relevant in terms of benchmarking 2020 performance against 2019 or first quarter 2021 performance against the the prior year, so no longer any normalization related to that. Having said that, on merchant services, we have an 8% growth in terms of revenues for the first half, and 18% in the quarter, so strong performance there. On cards and digital payments, in the second quarter, we can see the effects of the recovery for the first half. Obviously, compared to 2020, we have a bit of a volume effect, which drives us to minus 5%. and digital banking corporate solutions which is effectively have been taken out the usual reporting of nets from cards and digital payments uh relating to uh e-security services and digitization which is benefit less impacted by covid and secondly benefiting from um from uh strong growth in digitization in both infections and the subscriptions um moving on to slide 31 we can see what the combined group looks like and Starting from the overall revenues, we have four pie charts, which are pie charts on revenues and monocosts. Revenues, we can see how merchant services remains the vast majority of our business, close to 60%. And within that, a quarter of this is e-commerce. So e-commerce is large in nets and it's large in the combined entity. Roughly a third is cards and digital payments. And then the main 10% or thereabouts is digital banking, corporate solutions. We have a more balanced geographical mix. Italy remains a core country within the group and will remain so even more after the merger with SIA, just north of 50%, and Nordics accounting for roughly a third, and the rest being adapted in Poland, essentially. Importantly, we increase our exposure to volume growth, with now 60% of our revenues being volume-driven compared to 50% before. InstallBase is still an important source of revenues and revenue growth, frankly, at 40%. And you can see how the split is more skewed towards volume-based revenues in merchant services and solutions, at least so in digital banking and corporate solutions, and it's very balanced within cards and digital payments. Finally, on our cost base, having merged with NETS, which has greater processing capabilities in-house compared to Nexi, we have an increase of our roughly 60-40 fixed variable cost mix at Nexi to 74-26%. Now that we have merged with NETS in this rising volumes and hopefully rising revenues environment, we would expect to help us with operating leverage. Slide 32, I wouldn't comment in the interest of time. It just gives you the sum of various items we've just discussed. So both NEXE and NETS in the weighted average deliver 9% growth in revenues for the combined group in the first half, which is an 18% if you look at the second quarter. And with regards to EBITDA, it's double-digit for both growth in the first half, but close to 11% and 23.5% in terms of the second quarter year-on-year growth. EBITDA margins shows some improvement helped by NETS' improvement in operating margin, which adds on to the NEXI one. On slide 33, Italy are purely NEXI numbers we've seen in terms of the growth in revenue, so I won't comment on them. As you can see, Nordics are roughly flat year on year in terms of growth in revenues. If we look at the quarter, revenues are growing 8% in the Nordics. And again, this performance compared to the Italian one is primarily driven by the lockdown profile of the countries in which NETS operates compared to Italy. Moving on to DAC in Poland, we have, notwithstanding lockdown, huge growth fueled by, I would say, two or three elements. BNPL e-commerce in Germany and Poland in general, which have shown and exhibited very strong growth in the first quarter, second quarter, and hence the first half. And Southeastern Europe is essentially our processing agreement with Intesa, which has grown nicely as well if you look at the first quarter processing, going to 13% compared to the first half, which is 7%. I'll hand over to Paolo for outlook and final remarks.

Thank you, Bernardo. Now, looking forward, and now the perimeter is the new one, so it's the combined NEXE and METS. Obviously, the outlook remains uncertain in terms of evolution of COVID here. Our underlying assumption is that we continue to see a recovery from COVID with the trajectory that we've been observing recently with new material, new restrictions coming in across geographies. By definition, while in the past we were more directly affected by the Italian measures. Now here, as you understood from Bernardo, it's a portfolio of measures across the different geographies, and this actually overall gives us more resilience. Now, looking at this new perimeter, overall, we are de facto confirming our growth ambition in 2021 as far as revenues are concerned, while actually increasing our ambition in terms of EBITDA Coming to the numbers, as far as revenues are concerned, in the second half, we expect to grow anywhere between 11% to 13%, and around 10% for the full year. When it comes to EBITDA, we expect to grow in the second half of the year anywhere between 13% to 16%, and in the full year, anywhere between 11% and 13%, with one percentage point EBITDA margin increase versus 2020, I would say well supported, especially from METS, and an overall three percentage points compared to 2019. Overall, as you understood, we expect to see a broadly stable CapEx intensity ratio, anticipating the M&A synergies from the combination of the three companies, and overall, we'll continue to deliver strong organic cash flow and over time we will continue to deliver our profile from the new starting points as we combine the companies. Let me just close on page 35 reiterating the three very key messages. Again, volume accelerating on the back of the exit from the last phase of COVID. Now positive growth in all sectors, macro sectors compared to 2019 with actually more than 20% growth in Italian cards and foreign cards recovering faster. Very, very visible signals of acceleration from cash to digital payments across all sectors. strong performance in the quarter revenues up 22.6% in the quarter and EBITDA 26% 26.9% in the quarter overall strong progress in creating the European paytech leader both in terms of standalone performances of NetSense and in terms of progress on our transformation with an increased outlook in terms of synergies that we'll be delivering over time and all in all an improved ambition for the year on a larger and more diversified base. Let me stop here, and sorry if we've been rushing a little bit through the presentation, but you have the numbers, you have the documents, obviously we'll be super happy to answer to any further questions in the coming days. I would leave now the floor to your questions.

Excuse me, this is the Kuru School Conference Operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. To remove yourself from the question queue, please press star and 2. Please pick up the receiver when asking questions. Anyone who has a question may press star and 1 at this time. The first question is from James Goodman with Barclays. Please go ahead, sir.

Good afternoon. Thank you. A couple of questions from me around the guidance, please. Strong guidance for the combined NEXE, NETS business, perhaps just slightly above sort of prior expectations. And just wondering if you can really add some context to the NEXE versus NETS performance within that and sort of the expectations by business. And if I look at NETS, you know, what's implied for the EBITDA there, it's clearly above where I was originally anticipating next. But there's also some pretty ambitious targets that I think you're setting for the next business. So perhaps you could comment around that. And then the second question on the guidance, and probably more important, to be honest, is really, I think we need to look at how the business is going to look on a pro forma basis, including SEER for the year. That's actually the business unit that's outperforming on my numbers the most. So anything you can say in terms of how you're anticipating SEER to continue to perform in the second half of the year would be helpful. Thank you.

So James, let me try to give you an answer and then I will ask also Bernardo's help. Listen, the way you should look at it is basically on the past NEXI perimeters confirming what we said back in May that I always want to remember was an upgrade, a material upgrade compared to what it was in February, so we basically confirm that outlook for the year, that strong outlook for the year. And then actually we're aggregating that where we've seen a good performance, a strong performance, and we expect this performance to increase in the second half of the year. Don't forget that we are observing different profiles across geographies in terms of measures being released. Now, NET has seen in its geographies a situation that has been a bit worse than expected in terms of reopenings and speed of reopenings, I would say, especially in Germany and in the Nordics. Maybe Italy has benefited a little bit the other way around. And now, instead, we see the situation improving across geographies, and I think that in the volume profiles that Bernardo has given to you, we found some evidence of that also for NET in the key geographies. And as you've understood from the numbers, we expect to see also a margin expansion in the second half of the year from NET. On the overall profile, we're now providing a guidance, an ambition for the broader profile perimeter of the company. As I said before, no respect to see SIA continue to perform well. We have understood that probably some of the overperformance, especially at the BIDA level, will not be repeated in the second half of the year. I mean, you cannot see every quarter 48% of BIDA growth. But actually, no respect to see a strong full-year performance for SIA as well. Bernardo, if you want to add anything to this?

No, I think going back to James' request for comment on NEXT and NEXT-C relative performances, I think you should, at least this is the way we have analyzed and see the performances driven, the relative performances driven primarily in terms of the different profile of lockdowns, the geographies in which the two companies operated in, the different profiles they followed in terms of release of these lockdown procedures So, in fact, what they're expecting for Nets is a much higher performance in the third and fourth quarter following this trend. As I said, they're only exiting lockdown at the end of the second quarter. We're expecting to take the full benefit in the third and fourth quarter, so an acceleration there. In Linus, in the past, we've always highlighted how we have... An earn-out calculation on EBITDA, Finesse highlights a range between, if I remember correctly, 425 and 470, and we expect to be within that range within the full-year numbers. And, you know, any lower performance compared to higher performance, you know, I think, again, the other thing I'd be happy to state is primarily driven by, you know, lockdowns rather than any delay in initiatives that Finesse has in place. Absolutely, that's helpful. Thank you.

The next question is from Hannes Leitner with UBS. Please go ahead.

Yes, thank you for letting me on. Congrats on the good result. In regards to the end-of-day opportunity, we know that NETS has been very active over the last 18 months. Maybe you can comment there a little bit that you are planning to also do quite a lot of tuck-ins. and then maybe give an update on just like the large opportunities from banks, for example, merchant books in Greece or anywhere else in Europe. And then just on the net standalone, it seems like their OPEX is about 100 million larger than Nexi compared to lower revenues in H1. Where do you think you can balance it or is there something structurally in that business, which doesn't imply that you can get the same efficiency rate.

Hi, Hannes.

Well, let me start on M&A, and as always, we try to avoid to comment on any specific opportunities. You're right. I think Hannes has been very active, and we are very happy with that on good opportunities. I think in the context of a new group, our approach will be, at the end of the day, very simple. Number one focus is going to be from all of us, including myself and Bernardo, in delivering the organic growth. Number two is going to be on delivering the integration rate to companies and the benefits associated to it. But we will also continue to be open to considering further and many opportunities. We have to be selective, as we've always been. We'll be even more selective, and therefore we will continue pursue and capture the ones that we believe really, really make sense for the future of our company and are a good use of the resources of our shareholders in the company. So you will continue to see us being active and very selective and value-driven as well. When it comes to NETS standalone margin and so on and so forth, I think these are always very difficult comparisons because we are comparing different markets with different business models and so on and so forth. I will not be able to tell you right now how much opportunity there is in terms of cost in NETS compared to NEXE and so on and so forth. What I can tell you are probably two or three things. Number one, In Italy, as we always said, we have certain business models, for example, in issuing at a particularly high value for the banks, for the customers, and for ourselves as well. We have that business model that we call co-issuing or licensing, while actually NETS is mainly an issuer processor that normally comes with lower margins. This is definitely something that we're already working on together in terms of opportunities. The second area is that we should never forget that NETS is investing big time in driving growth in e-commerce and in certain geographies in particular, like for example, And last but not least, we should always go back to what we said in the past when we were saying that we are great believers of the importance of local scale. I think from this point of view, Nexi is quite unique, given the fact that we have a very large scale in one country, that is Italy. And this gives us the opportunity for cost optimization and running the business quite efficiently. Probably from this point of view, NET is more similar to other European companies in the payment space that do have the challenges of serving multiple markets. But clearly, as we give priority to top-line growth within the new group, we will continue to focus on cost as well. And obviously here we will benefit from the synergies across not only Nix and Net, but also SIA.

Okay, great. And then just a quick question on the variable outsourced costs, which you described, you know, like last year you definitely ramped them down and those are the transformative capex. Maybe you can give an update then across the enlarged base, cost base, how much is the other ratio and then how you're progressing with that transformation. Thank you.

The transformation for NEXE you've seen, you want to know for NETS, right?

So I guess the question is more around the variable costs going down, right?

Correct. And, you know, basically the outsourcing contract with Airquence, which is, you know, like what you're in-source.

Yeah, I think in general, no, this was already in the plans of NEXE, and never forget that over the last, basically... three, four years, we have insourced a third to half of what we were outsourcing in many different fronts. And in our own plans, we were already having a plan to insource more. Clearly, with the combination of NETS and SEED that are really not technology-rich on the processing side and infrastructure side and so forth, we will insource even more and even faster. So you will see that dynamic continuing and actually over time accelerating significantly. which means that we would like to invest all the transformation capital that we have announced in the past, but over time you will see the variable component going down, giving us even further operating leverage.

Perfect. Thank you.

The next question is from Sebastian Zavovic with Kepler Shiver. Please go ahead, sir.

Hi, everyone, and thanks for taking the question. Coming back on net profitability, if I'm looking at the margin, it was only 30% EBITDA margin in each one. And last year, they ended the full year at 37%. So I just wanted to understand why the margin has been declining at net despite the growing revenue. And also, it seems that you are still confident to increase the margin on your basis at net standalone. Can you explain a little bit the dynamic behind that And the second one would be on your growth prospect for the medium term. So now on the pro forma numbers combined entity, you are targeting 10% growth for this year. Do you think this is a sustainable trend beyond 2021? Or there is any positive or negative one of special items that are impacting the growth for this year? Thank you.

Bernardo will cover the first one. Hi, Sebastian, by the way. Hi.

So I think when you look at NETS' performance, you should always go back to the discussion or the points we made with regards to the timing of lockdown, etc. So last year, 2020, when you're looking at the comp, you had the first half of the year, which was less impacted in the countries in which NETS operates compared to the second half and compared to the first half of this year. And therefore, what we have is the trend you have observed. in the margin, which is exacerbated, I would say, by the fact that NETS has a higher, for instance, component of fixed costs. It's the other side of operating leverage, right? Declining volumes, lower volumes, with a higher percentage of fixed costs. And therefore, when volumes go down, revenues go down, the margin suffers more than it did, for instance, at NEXE, where we were, you know, with 40% of variable costs able to compensate part of this decline in terms of the erosion of the margin. So this is in terms of, let's say, relative percentage. Then in terms of absolute margins, as you know, Nexi has higher margins structurally for a number of reasons. One of them, and the main one, is that we are very, very large, a billion euros of revenues in one market, which drives a lot of this efficiency. The other is that we, in part, report our revenue slightly differently to companies like NETS because we have a different arrangement there. with regards to distribution or different operating model with regards to distribution that flatters our margin compared to NETS. I'd say these are the primary reason. Then also NETS has a bigger on the issuing side processing business compared to ours, which is more of a co-issuing business, which as Paolo highlighted earlier is our margin. So in terms of absolute margins, NETS is lower level starting off with for these reasons. The dynamics are the ones that I highlighted with regards to the exit of the lockdown. and you overlay on top of this the higher structural fixed cost base the NETS has, and that explains the performance.

When it comes to the outlook for next year and so on, Sebastian, I think it's really a bit too early to talk about it because I think there are too many moving parts into the environment driven by COVID, and as I always said, the growth rates across 2021 and probably also 2022 would depend also from the good or bad dynamic in the previous year. As we said in the past, the outlook I think for this group is if you remove a little bit COVID and you look at the underlying dynamics is the one of our group that as the ambition to grow revenues anywhere in between a mid-high-to-high single digit and a double digit with continued operating leverage. So this is, at the end of the day, what we have in mind across the different individual year specific dynamics.

And the EBITDA that you forecast for NETS for this year, you provided a bracket, but did not catch it up well?

No, no, sorry, we didn't provide a specific target of EBITDA. We've given you a guidance with regards to the growth of EBITDA for the combined group, but we never set a specific target for NETS. What we have done, or I did in this call as well, is highlight how we have, at the time of the announcement of the merger, we negotiated an earn-out pay with the sellers of nets, which will be triggered by an EBITDA falling within a range of 425 to 470 million euros for the year. And we expect to be within that range, subject, obviously, to what Paolo said in the past in terms of the unpredictability of COVID.

But clearly, if you take our previous guidance, next year's standalone, and the new one that we're giving for the second alpha, obviously, you clearly... understand that we expect to see a fast acceleration of EBITDA for net since the second half of the year, which is, as Bernardo suggested, a good mix of accelerating revenues on the back of the exit of COVID and continued good cost control and actually certain measures coming into place.

Great. Thanks a lot.

The next question is from Josh Levin with Autonomous. Please go ahead.

Hi, good afternoon. I have two questions. The first, I wanted to follow up on some of the previous questions to get a bit more clarity. So as you've indicated, for NETS management to earn its minimum EBITDA earn-out shares, NETS needs to generate at least 420 million EBITDA in 2021. Based on the NETS 1H21 results, and if our math is correct, please correct me if it's not, that implies that NETS EBITDA will go 24% year-over-year in the second half, just hit the low end of that EBITDA range. So that must involve a fair amount, a degree of cost cuts. So maybe you could sort of walk us through what those cost cuts might be and how NETS will balance those cost cuts with revenue growth. And then the second question is Worldline recently announced an Italian acquisition. The acquisition is small, but do you think it's significant or how should we think about the competitive dynamic as Worldline tries to expand in Italy? Thank you.

Good morning, Josh. So on NET's second performance, I can only reiterate what I said before, and actually the range that Bernardo was referring to has to do with shareholders' earnouts, not directly connected to management. Actually, the real driver of the acceleration of the performance for NET will be basically volume growth and revenue growth. also on the back of COVID, driven by their growth plans that are under execution, but also supported by the volume growth expected as the economies and the markets reopen after COVID. So that's really the main driver beyond the cost work that is a bit more conventional. When it comes to Worldline and Italy, I think here, we always have to be clear in reading what is happening, because World Finance bought a nice little asset here in Italy that is the merchant activities of Benpe Paribas. That company was already de facto a competitor in Italy, and by the way, a successful competitor, and with a very focused approach because it was... a standalone company. So I guess the point is not Worldline becoming a competitor or not. It's will Worldline be able to lead this company performing more and competing stronger than what it was before. So I think that's the way to read it. But I think what they're doing makes sense.

Thank you very much.

The next question is from Mohammed Moawalla with Goldman Sachs. Please go ahead.

Great. Good afternoon. Hello, Bernardo. I had a couple. So first of all, I just want to sort of clarify on the merchant services. You indicated that sort of volume grew 2% in Q2. Has there been a restatement around – and sorry, that was relative to 2019 – Has there been a restatement relative on the 2019 figures? Because I think when we take what you previously reported, it actually implies a decline. And then I think you've talked about double-digit volume growth relative to 2019 for core NEXE. Can you just kind of help us understand and bridge that gap, therefore, and what gives you the confidence around that recovery? And then the second question is just for core NEXE. I know that your previous guidance was sort of around double-digit growth, but you had indicated that as travel and tourism recover, there's sort of upside to that. So in the new guidance that you have given for four months, have you changed your expectations around corn vaccine anyway? Thank you.

Maybe I can take the last one as Bernardo is preparing for the first couple of one and I, Mo, would like to talk to you again. Your point is well put. We have adjusted our mix outlook for the rest of the year on the back of what we have observed over the last couple of months, I would say. I think in terms of dynamics that we see, we have developed a more optimistic view on the recovery in the high-impact sectors and marginally on international travelers as well. The one sector where instead we have rebalanced and taken a more conservative approach is the discretionary spending sector. And this is actually due to the observations that we have. I think it is very visible, and I think it's also interesting from the social point of view. As people exit from restrictions, we see people much more keen to enjoy a social life, and therefore restaurants, travel, bars, and so on and so forth, growing much faster than expected. A bit less jumping to shops and buying stuff, and therefore discretionary spending back into positive, but accelerating a bit less than expected so I think the mix is slightly different but is all in supporting the guidance that we gave in the past the other thing is that for the Italian standalone piece I mean the other thing that I want to underline which I think all in is a positive is the quality of the mix we've seen a faster than expected recovery of SMEs growing faster than LACA and you know that normally SMEs come with a better overall contribution for us. And similarly, we've seen also commercial cards starting to re-accelerate, still below the previous levels, but actually accelerating better than expected, which is, again, all in positive news, supporting, again, as I said, the confirmation of the guidance. That's what we're seeing in terms of volume dynamics and, therefore, expectation going forward. Bernardo, on...

I'm sorry, I don't know if your question is a detailed question on the numbers in slide 6, where we have a footnote saying that we are now reporting volume numbers, including mercury payment services, whereas before we were a bigger base of numbers with a slight difference, I guess, compared to historic reported numbers, or if there was some other question behind this. If it's the first, then I'd just suggest you hook up with Stefan, and she can give you full visibility on the database effectively.

Okay, yeah, no, it was more on slide 8 where you had Q2 2% in merchant volume. When you do the calculated number of the 19-base, it's more like minus 6. I'm just curious if there was any restatement.

I don't know if you're calculating. I don't know where you're doing the calculation. This is just Italian cards, right? So it's... No, no, this is total. Page 8. Honestly, I don't know where you're calculating this difference.

Okay.

We'll follow up because I'm not sure we understand exactly the question.

Okay, and also just for the basis of the guidance for 2021 on growth rates, what is the base pro forma sort of revenue and EBITDA you're using to get to the sort of that we should use to compute the growth rates of?

If you're talking about the ambition is the new perimeter NEXI plus NESS with the full set of assets that the two companies do have at the moment, including Poland and when it comes to NETS?

Yes, so what number should we use for 2020? Revenue number and EBITDA number?

Ah, okay. Yeah, 900 and what is it? For revenues, it's 900. For NEXI, it's a billion and 44 million euros. And for NETS, it's a billion and 58 million euros.

Okay. Thank you.

The EBITDA numbers as well, just to make sure we are on the same page. Yeah, yeah, sure, why not? 601 for NEXI and 374 for NETS.

Okay, thank you.

Thanks.

The next question is from Simonetta Chiriotti with MedioBanca. Please go ahead, madam.

Hi, good afternoon, everybody. So, I have a question on financial expenses that in the normalized P&L of the maximum loan is 61 million. So, could you please tell us which are the underlying function of this number and which are the elements that we should consider? when we estimate the financial expenses for the group Maxi, Max and Sia in 2022.

Thank you. So starting from page 20, I guess you're looking at the P&L rather than the cash number on page 21, right? So 61 being the difference between the 77 and the 16.6, is that right?

Yes, I was looking at page 38. in the presentation.

38.

Yeah. Yeah, which is, as I said, it's the same.

So I'll just use the page 20 to illustrate it. So interest expenses 77.7 is what we actually booked in the first half, and it's both cash costs of interest, so the coupon we're paying bondholders and lenders, the amortized cost of these instruments, etc. What we have done then is to normalize this effectively is try to superimpose the most current capital base, so the fact that we've reimbursed or closed the bridge loan, the fact that we issued bonds partway through the first half and therefore bringing them back to the first half the 1st of January so that we would annualize it for the first half if you want. And we also got rid of the negative carry in this normalization of the cash that we have raised in anticipation of closing the NET deal that we have on the 2 billion that we issued from the convertible bond and the remaining financing that took place during the during the first half. So what we've tried to do in calculating 61 million is give you a view of what the run rate, cash and non-cash costs of this capital structure will be. So if you want to annualize it, you multiply that by two, and that's what you would expect for next CNET. This does not include, if you want, SIA yet, and SIA will bring additional, let's say, you know, let's say the additional 1 billion euros of indebtedness of SIA on top of this at the average cost that we've highlighted on slide, I think it is slide 20. There you go. We've highlighted 21 million of additional interest from SIA. There you go. This is both the coupon and 165 plus the amortized cost of it. So approximately 2% in additional billion.

Yeah. Simonetta, it's Paolo here. Basically, it's exactly the same approach we took in the past as well in representing the financial cost.

Thank you.

The next question is from Gianmarco Bonacina with Equita. Please go ahead.

Yes, good afternoon. Just a follow-up on SIA. I know you are kind of restricted because the deal is not closed yet, but given the the fact that SIA did not have any impact or very limited impact in Q2-20 from lockdown because the revenues, they were kind of flattish. So the growth this quarter is remarkable. Shall we expect, let's say, that SIA 2021 could be accretive to your next in its ambition in terms of top-line EBITDA growth? on a performer basis.

Sure.

Sergio Marquez-Paolo here. But listen, I think it's difficult for us to say from here. I believe that when we look at the SIA dynamics, we should always remember the fact that they've been winning customers, especially, I would say, outside of Italy, and that's something that contributes to their revenue dynamics. And number two, through certain customers, I would say in particular one, they've been very exposed and they're currently very exposed on the issuing side to the growth of e-commerce in Italy, as one of their customers is the most probably used way of paying online in Italy. Last but not least, and I think this is also very important, don't forget that in an issuer processor model that is the one of and for them issuing is actually more relevant than merchant services, the number of transactions is more relevant than the value of transactions, and that number has been growing a lot during COVID compared to volume. So I think it's a mix of all these elements that support the strong performance that we've been observing in the recent past from SIAF.

Okay, maybe just a quick follow-up, but because the idea was that, correct me if I'm wrong, that SIA was an asset with maybe top-line DBDA growth, maybe slightly less strong than NEXE, while in reality, given that the number of transactions is probably continuing to grow very strongly in the future, they could have at least a similar growth.

Well, as I said before, let's hope it's the case. I think before confirming that to you, I would be more comfortable to have the conversation after we're closed and we can look at the plans. But again, congratulations, I think, to see a strong performance. By the way, don't forget that sometimes certain phenomena unwind. So if you had an acceleration one year, then you have a deceleration the following year.

So I really want to make sure that we don't have that effect.

Thank you, Alois.

The next question is from Alexandre Faure with Exxon BNP Paribas.

Please go ahead.

Hi, good afternoon. Thanks for letting me on. I have a couple of questions. One is on SIA again and on the... review and regulatory approvals. I think you pushed it a little bit into Q4 in terms of closing. Could you please remind us of the next steps? You mentioned you had the approval from the Bank of Italy, so what would be the next phases in getting all the approvals done? That would be my first question. And the second question is on your new cost structure. I think, Bernardo, you are applying one slide that you've been moving from 60-40 fixed variable to 74-26 by merging with NET. Where do you think this number will end up once you've integrated with SIA as well? Thank you very much.

Thanks, Alain. So I think a lot has been made about us inserting this fourth quarter number in terms of SIA closing. The truth is we're trying to be as transparent as possible with regards to the process where there is no news really. We are in discussion. We have received Bank of Italy clearance. We have received antitrust clearance in Germany, Poland. I can't remember what other markets or number of markets. Essentially, most of the work is being done on antitrust clearance in Italy, which was expected. I think Paolo highlighted how we were expecting, you know, end of, you know, between the 15th of September and the 30th of September. We'd always said 30th of September. Now this might move by a couple of weeks to mid-October. That's really it, right? So we were expecting to have deal certainty exactly pretty much where we were, you know, 12 months ago or when we announced the transaction in October, last year we're just fine-tuning to give you a day-to-day or as live as possible update on on timing we will then choose the accounting effectiveness of closing uh based on what is most convenient at that point but you know transaction certainty is expected to come um you know pretty much where we said it was going to come when we discussed this previously so there's no real delay unless you can call two weeks a delay within uh you know a one-year process Now, the second question is on the cost structure. So, 7426, I think when we go back to what we announced in November, when we announced the second of the two transactions, we said the pro forma cost structure would be approximately 70-30 cost, including fixed variables. So, you know, always an improvement or an increase of the fixed base compared to the next standard loan. slightly more variable compared to NEXI nets. So 70-30 is the answer.

Thank you.

The next question is from Paula Louis with Verition Advisors.

Please go ahead, sir.

Hi, I had one question on your leverage. So I noticed similar commentary to when you announced the Nexi Nets acquisition, but the targets are not mentioned. I think you're targeting two to two and a half times post-close net leverage by the end of 22, including run rate synergies. Are those targets still the plan or are you using the upcoming investor day that you alluded to to provide an update?

No, those are the targets remain unchanged which doesn't mean we won't update you in investor day when there's probably greater granularity and greater analysis with regards to the coming years. But by the end of what we said at the time of the acquisitions, one year after closing of both the transactions, somewhere between two and two and a half times leverage remains our target. Clearly, this is excluding any material M&A. It would include any non-material M&A, but if there were to be any M&A in the next year and a half, obviously, we'd need to see how we fund that, et cetera, and maybe revise the target. But otherwise, it's between two and two and a half times.

Great.

Thank you. I think Bernardo is very consistent with what we have seen over the last couple of years, where obviously, as we did yesterday, in a very efficient way, a capital efficient way, the increased leverage, but then start again a very fast leveraging journey, by the way, despite COVID, which I think is really important to be underlined.

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Well, I guess this is enough for today.

Thank you for participating. I understand it's also Friday afternoon. We tried to anticipate the call compared to our usual standard and also tried to make it... a bit shorter and faster. Listen, thank you very much for attending again. The key messages for us are fast recovery of volumes with most importantly super, super visible acceleration of cash digital happening in Italy. Some performance for H1 and in particular I would say second quarter with more than 20-25% growth of revenues and EBITDA for Nexi Italy. Strong progress on our combination with SIA and NETS that in the meantime are performing quite well, as you've seen. And last but not least, for the rest of the year, a double-digit growth for both revenues and EBITDA with some margin expansion in the second half of the year for the new entity NEXI plus NETS. We stop there. Thank you very much again for attending. I hope you will enjoy some relaxed holiday time with your friends and families and looking forward to catch up with some of you over the next very few days and hours. And please come back for any questions. I understand that with the new profile there is more information, more complexity. But again, we're going to be even more ready to support. Thank you very much. Bye-bye.