Nagarro Se

Before we begin, let me briefly explain how you can submit questions. If joining us via Zoom, please use the raised hand icon or the Q&A box, both located at the bottom of your Zoom window. If you've joined us via the phone, please press star 1 on your telephone keypad. Please limit yourselves to two questions initially, you may re-enter the queue. We will return to unanswered questions if time permits. And with that, it is my pleasure to hand you over to Michael.

Great, thank you, Adam, and good afternoon, everyone. My name is Michael Knapp, and I'm part of the investor relations team at Nagarro. If you have not yet received a copy of our earnings release, you can find it as well as a copy of our half-yearly statement and today's presentation in the investor relations section of Nagarro.com. Joining me today is Manas Human, our co-founder and custodian of entrepreneurship, and Prateek Aggarwal, our chief financial officer. Before we begin, please note that some of our statements made during this call may be forward-looking and are subject to risks and uncertainties as outlined in our financial reports. Additionally, please refer to our half-yearly statement for important information regarding non-IFRS measures. And with that, I'm pleased to hand you over to Manas.

Thanks, Michael. Once again, welcome everyone and thank you for joining us on this earnings call. Let me start this call by talking a few minutes about the topic of the day It is now becoming very clear that enterprise AI transformations will have to be anchored in excellent engineering. The challenge with AI, as we are hearing about every day, is to make it work consistently, dependably, and safely across complex vision-critical environments, and that is primarily an engineering problem. This is now becoming very obvious to our clients. So it is very exciting and very validating, if I may say so, that the capabilities that Nagarro has developed over the years and over decades are now an excellent fit for this new world. Nagarro brings deep engineering depth across data, AI, platforms, and products. And on top of this engineering, we bring strong client intelligence and client context developed over long-term relationships with these clients that stretch over years and very often decades. Having worked so long in digital transformations at those clients, we bring the capability to navigate those clients, to navigate the enterprise complexity across business, tech, and operations. We have always been helping clients go from strategy to execution. We work routinely with the world's leading consulting firms to bridge the gap between that strategic advice and the engineering execution. Hence today when our clients want to scale AI and create value with responsible guardrails and with safety and trust, we believe Nagarro is the right engineering partner for them. So beyond the results of the quarter just gone by that we'll get into in a moment, this is the overall context that as we stand at the starting line of this AI revolution, we feel that Nagarro is a very strong contender. Now with those introductory words, let's get into the quarter. There have been many exciting developments since the last earnings call. I will start with the most important among them, our potential combination with Persistent Systems. On June 26th, Persistent and Nagaro signed a business combination agreement to form the Persistent Nagaro Group, a global leader in AI-led digital engineering. Following up on that, on August 4th, Persistent announced that its shareholders have approved the proposed acquisition of Nagaro SE in their AGM, Following the authorization by BaFin, persistence voluntary public takeover offer for all of Nagarro shares is now open. You can find the details of this offer at www.galaxy-offer.com. Please note that several mandatory regulatory approvals are still not in place and still awaited and the teams are working hard to procure these. Please also note that some hours ago, Nagarro's management board and supervisory board have issued the joint reason statement on the voluntary public takeover offer, which supports and welcomes the offer as being in the best interest of Nagarro and recommends that the Nagarro shareholders accept this offer. This is just the gist of the joint reason statement. The entire joint reason statement can be found on our website. We will not be taking any questions here about the proposed combination on this call, since the joint reason statement is out there in all its glorious detail, and we can't really add to it with our answers. So please bear with us on this. We will not be taking any questions. You are please invited to refer to the joint reason statement. Moving on to other exciting developments in this quarter, Nagarro's quarterly NPS has hit an all-time high of 70. Our NPS has mostly stayed in the 60s. dropping below 60 only once, but to have it up at 70 for the first time is very gratifying. I would like to congratulate all my colleagues who are doing great work for all our clients and also thank our clients for their trust and collaboration that's delivering this joint success. In 2026, Tagore participated in the ISG Digital Engineering Services Survey for midsize providers for the very first time. And we were ranked number one globally in customer satisfaction and delivery execution which got us the CX Star Performer Star of Excellence. Importantly, the Star of Excellence recognition is based on independent customer feedback, which makes it particularly meaningful and gratifying. So this is a high honor that correlates very nicely to the point above on our high NPS. In addition to the CX Star Performer recognition, we were recognized as a leader for Europe in the ISG provider lens. Finally, we signed on many incredible new clients this quarter. These include an iconic global sporting event that takes place every four years. By the way, we also work with another iconic global sporting event that takes place every four years, but this one is a new client. It includes one of the hottest US brands of running shoes. It includes a leading European insurance group, a Middle Eastern government health services department, a leading US roofing maker, a leading tiling and flooring maker from the Middle East, A leading auto company in Japan, an iconic apparel group in Australia, and many others. In fact, even after the end of Q2, there have been many similarly exciting new client wins between June 30th and today, but I will leave these for the next earnings call. Now, let's get into the quarter. I will turn my camera off so you can focus on the numbers. We delivered a decent financial performance in the first half of 2026. generating revenue of €501 million, representing 4.2% constant currency growth year over year. Q1 was 6.5% constant currency growth, whereas Q2 was slower at 2.0% constant currency growth. Comparing H1 2026 to H1 2025 across our top five countries in constant currency, it is interesting that revenues have grown strongly in three of the five largest countries for us. In constant currency, revenues from the US grew 9.0% from H1 2025 to H1 2026. India revenues grew 14.7% in this same period and UAE, the Emirates revenues grew 16.8%. But revenues from Germany declined 3.8% and Austria declined 5.0% due to a couple of specific client and engagement contexts. We see these Germany and Austria scale downs as temporary and are working to reverse them. Overall, what we are seeing is that the broader demand environment for digital services remains muted as the clients still work through and think through the implications of AI on digital build. Against that muted demand scenario, our results demonstrate the strength of our customer relationships and the power of diversification. Gross margin exceeded 32% in Q2 with a healthy mix of business, strong delivery execution, and ongoing operational discipline across the organization. At the same time, adjusted EBITDA margin reached 15.0% in Q2 2026, although assisted by some FX movements. We see still large, significant, low-hanging opportunities to improve sustainable profitability through improved utilization and streamlining investments. We now have a new CFO. We are working on those and expect to see results by Q4. Customer engagement and satisfaction, of course, remain key indicators of the health of our business. And we continue to see encouraging results in this area. As I just mentioned, our customer satisfaction metrics are excellent. A CSAT score of 93.2% and a NPS of 70. These underscore the trust our clients place in us and the value they see in our partnership. We believe that these customer outcomes are a direct reflection of our strategy with people, our culture, and our commitment to delivering measurable business impact. The number of clients generating more than €1 million of revenue in the trailing 12 months increased to 184, up from 179 in the first quarter. With that, Prateek, would you like to discuss the balance sheet and cash flows? Prateek, if you're on mute, yeah, go ahead, please.