Ovh Groupe

Ladies and gentlemen, welcome to the OVHcloud H1 Full Year 2025 Results Conference Call. Today's speakers will be Benjamin Revkolevski, CEO, and Stephanie Bisnyi, CFO. And I hand over to the OVH team to begin today's conference. Thank you.

Thank you. Hello, everyone. I'm Benjamin Revkolevski, CEO of OVHcloud. So we published our H1 FY25 results this morning, and we thank you for being with us on this call. So let's start with slide three for the key highlights of our solid set of results. As you can see, H1 FY25 was a solid semester. We generated 536 million euros in revenue and grew by 10.2% like-for-like compared to the same period last year. This growth was fueled by a continued demand for public clouds and also data sovereignty offers. We also saw a high revenue retention rate of 107% of our customers and also solid international growth as we will highlight in the next slide. So looking at our profitability, our discipline was unchanged and we have demonstrated in this semester a strong operating leverage with our adjusted EBITDA reaching 214.6 million euros which is corresponding to a 40% margin. This operating leverage also led to a strong improvement of our cash generation with an unlevered free cash flow that reached 36.8 million euros. H1Y25 was also marked by the success of our refinancing with an inaugural bond of 500 million euros maturing in FY 31 and also the setting up of a 450 million euros green loan maturing in FY 30. Looking ahead, we are confident to deliver our guidance for the full year. We expect in the demand for data sovereignty, public cloud and artificial intelligence to continue to drive growth. and we will also maintain our CUSP discipline for the rest of the year. Let's move now to the slide four and our strategic pillars. In this rapidly evolving geopolitical environment where we see public entities and private companies that are looking to preserve their strategic autonomy, I would like to remind that our vision for OBS Cloud has remained the same and I want to also show you how we answer to our customer needs. OVHcloud has succeeded indeed in building up strong core business fundamentals and we'll continue to leverage them to deliver our two priorities on the left of this slide. First, we are focusing on operational efficiency of our fundamentals to grow up our revenue and also leverage productivity. This will help us to deliver a more predictable and more profitable growth. Our second focus is to improve structurally our cash generation. It's critical to our long-term success as it ensures our capacity to continue to invest and to innovate. Then, as you see on the right of this slide, we are strengthening two of our future revenue growth upsides. First, we'll continue to reinforce our position as leader in data sovereignty solutions. Indeed, strategic autonomy in key sectors such as cloud is becoming critical, and our customers are looking for alternatives, and we're committed to provide them with trusted cloud solutions. Our second upside is about enhancing our public cloud product offering to answer customers' growing needs. As an example, we'll continue to strengthen our artificial intelligence solutions and to roll out new products in our three availability zones, three AZ regions. These two core business fundamentals and these two growth upsides are the pillars of our vision for OBS Cloud to deliver our ambition and financial targets. Let's move now to the next slide to highlight the business achievements of the period.

I wanted to share some business highlights for each one.

First, we worked on delivering new products, and we were able to get the SECNUM Cloud qualification for our ultra-secure private cloud solution called BAR Metal Pod, which is now the second product being qualified with SECNUM Cloud. We are now working to get the qualification for our public cloud in the next months to come. We also released a new cloud offering which can be delivered on our customers' premises called On-Prem Cloud Platform or OPCP. Plus, we made available new important public cloud products for our customers. They can now use compute, network, block storage, object storage in our three AZ, three availability zone regions in Paris. which provides higher resilience and availability. Regarding customers, in the middle of this slide, you can see that we signed several high-profile contracts, such as our first on-prem cloud platform with Deep, which is part of the Post group, which is the leading provider of telecoms, ITT, postal and financial services in Luxembourg, who will leverage this product to build a sovereign cloud for the Luxembourg market. We also signed with Commerzbank in Germany for a migration project from their on-premises infrastructure. In public cloud, we also won a contract with Serco and the European Space Agency to improve Earth climate change monitoring as part of a European initiative. When looking at our data centers on the right, you can see that as we have said, we are currently focused on improving the occupation rate of our data centers that reached circa 65% in H1. We also have been active in opening new local zones with now 23 large cities available around the globe at the end of H1. Additionally, in Italy, the infrastructure works in our future data center in Milan are on track with an opening plan before the end of calendar 2025. Finally, we are very proud to have significantly improved our corporate sustainability assessments by Standard & Poor's Global to 51%, which is a 10-point improvement compared to last year, and which ranks us in the top 16% of the industry. Let's now have a look at our performance by segment, starting on slide six with Private Cloud. So looking at Private Cloud, which includes, as you know, Bar Metal Cloud and Hosted Private Cloud. In H1, we delivered 334.2 million euros in revenue representing 62.4% of the group's total revenue and achieved a lifelong-like growth of plus 10.4%. In Q2, we delivered 169.8 million euros in revenue representing 62.3% of the group total revenue and achieved a life-alike growth of 10.5%. As highlighted on the right-hand side of the slide, in Bar Metal Cloud, our average revenue per active customer, which is called RPAC, increased thanks to a positive mixed effect from the ramp-up of our recently launched mid-range servers with last-generation hardware. And we also benefited from continued strong demand in the United States and Asia Pacific. Now looking at hosted private cloud, demand for sovereign offerings such as Secnum Cloud certified solutions remain strong. Since May last year, we have also benefited from a positive price effect following Broadcom's new licensing model for VMware. This contributed to around 1.7 points of the private cloud segment growth. Let's move now to the next slide about public cloud. In H1SY25, the public cloud segment reached 103.8 million euros in revenue, representing 19.4% of the group's total revenue. And we also achieved a like-for-like growth of plus 17.3%. In Q2, we delivered 53.5 million euros in revenue, representing 19.6% of the group's total revenue, and we achieved a life-for-life growth of plus 18.7%. As you know, in recent years, we have been investing in our product offerings for public cloud, and there is a strong demand for these newly launched public cloud products. You can see on the right hand side of this slide that we are seeing an acceleration growth across all geographies. This is fueled by the increased availability of our products across these geographies, notably compute and object storage. And this is strengthened by the recent launch of public cloud in our three AZ region in Paris. We are also benefiting from growing demand for AI, for artificial intelligence, which contributed for around two points of the public cloud growth in H1 with hardware GPUs from NVIDIA and also AI software solutions.

And thanks to our broad range of AI offerings, we are able to address an ever-increasing number of customer use cases in the inference market.

Finally, we're seeing continued success with our savings plan offers, which encourage customers to commit to longer-term engagement, and which have also contributed to the increase in our RPAC. Now moving to the web cloud segment on slide eight. In H1 FY25, you can see that the web cloud segment reached 98 million euros in revenue, representing 18.3% of the group's revenue, and grew by plus 2.8% like a light. In Q2, the web cloud segment reached 49.2 million euros in revenue, representing 18% of the group's total revenue. The segment grew by plus 1.3% like-for-like, knowing that it faced a complicated comparison basis with a strong performance in Q2 FY24. In H1, if we exclude our telephony and connectivity legacy segment, growth reached plus 6.3%. Growth is mostly driven by strong performance in domain names, thanks to the successful rollout of new features, such as the multi-year renewal in several of our geographies, and also an improved customer experience. We are currently working on a repositioning of our legacy sub-segments. In the coming months, we'll streamline the operations and launch selected new offers with limited investment. I now hand over to Stéphanie Besnier for a deep dive on the financials.

Thank you, Benjamin. Hello, everyone. I am Stéphanie Besnier, CFO of OVHcloud. Thanks for being with us this morning. So let's begin this financial section with our key financial figures of H125. So in line with our new development phases, we delivered a profitable and cash-generative growth this semester with a solid revenue growth of 10.2%, like for like, an adjusted EBITDA margin of 40%, up 220 bps compared with H1-24, CAPEX reaching 36% of our revenues, and an unlevered free cash flow of 36.8 million euros, up sharply compared with the same period in 24. The increase in our capex is linked to seasonal investments and a proactive push on components, the supply, so as to prevent shortage. We expect our capex to decrease in H2 and to be in line with our guidance for the full year 2025. Moving to the next slide. So regarding top line, as Benjamin said earlier, we delivered a solid growth of 10.2% like for like and 10.3% as reported during this first semester of FY 2025, in line with our annual guidance. This was driven by a resilient private cloud performance, up 10.4%, like for life, and an accelerating public cloud growth in Q2 2025, which was 290 bits higher than in Q1 2025. Moving to the next slide now, we look at the business dynamics by geography. So first in France, revenue grew by 8.1%. Knowing that web cloud represents 30% of our business, France delivered robust growth on the cloud segments. Public cloud delivered an accelerating life online growth of 18.6% fueled by the new products. and private cloud increased by 8.7% with a steady demand for data sovereignty tempered by some customer optimizing their workloads after Broadcom related price increases. Now let's look at our international sales which account for 52% of our revenues. So first in the rest of Europe, growth reached 9.7% like for like in H1. In this region, Central Europe remains the most dynamic region, as shown by the recent signing of a contract with the German bank, Commerzbank Group. In the rest of the world, the growth kept accelerating, with H1 LiPoLi growth of 15.4%. In private cloud, we continue to experience strong momentum in the United States, thanks to our development strategy focused on technology companies. In addition, we witnessed encouraging traction in public cloud, following recent rollout of some product availability in Asia Pacific and in Middle East. Moving to the next slide, we will look on how we managed to increase our profitability. So as you can see, in H125, our profitability significantly increased with an adjusted EBDA of 214.6 million, representing a margin of 40%. The significant 220 bps improvement in our EBDA margin is coming from, first, a reduced electricity cost as a percentage of revenue compared to FY24, at less than 6% of our revenue in this semester. A strong operating leverage, thanks to the high volume of service produced which contain operating costs in our data centers and a better absorption of our administrative sales and marketing team costs. This cost discipline led to a strong improvement in EBIT, which increased to 42.4 million, representing a margin of 7.9%, up 670 basis points compared to the same period last year. Our EBIT includes DNA expenses of 170.5 million, down compared with H124, which included last year an exceptional one-off linked to legacy COVID stocks. It also includes some non-recurring expenses or income, such as the sale of a legacy data center in Paris, which was mostly used for internal workloads. Below EBIT, our financial results reached $29.4 million and includes an acceleration of anonymized fees of previous term loans for $7.5 million, an increase in interest rates over the period, and a higher net debt. After including a tax expense of $5.8 million, we recorded a net profit of $7.2 million for H-125, a significant improvement compared with a net loss of 17.2 million for H1-24. Let's now look at how this increase in profitability translates into cash generation. So, this strong growth in our profitability is reflected in our growth cash flow from operating activities, which rose to 211 million in H1-25 from $180 million one year earlier. Change in operating working capital requirements was higher than usual and amounted to $21.3 million in H-125 compared with $4 million in H-124. It includes phasing effects due to late orders in February and some delayed supplies payments. Our capex now, excluding M&A, amounted to $193 million in H125, representing 36% of our revenue. We invested 24.6% of our revenue in growth capex, some of them in anticipation of H2, and we invested 11.4% of our revenue in recurring capex. All in all, thanks to our increase in profitability, we are generating an unlevered free cash flow of 36.8 million in this H125, improving strongly our cash generation. Let me give you on the next slide a reminder of how flexible our model is with the split of our capex. During this semester, we reduced our infrastructure capex and we decided to do a seasonal push on hardware capex. Indeed, as you can see, hardware capex represented 24% of our revenue, 10 points higher than H1-24. This increase is linked to a proactive push and supply to prevent shortage. We expect then lower hardware capex in H2. For infrastructure and network capex now, they are four points below last year and we reduced it as planned. In early 25, we almost finished our significant data center's opening program, and this semester we just continued with some usual infrastructure and network work to prepare for the next phases of growth. Then, product and software development capex slightly decreased in absolute value, representing more than 6% of our revenue. We continued to develop and enhance our products, notably our public cloud offerings, and new sovereign offers. Finally, other CAPEX declined in H125 compared to last year. It includes mainly the cost to open new local zones, and on the other hand, the proceeds of the sale of a legacy data center in Paris, which was mostly used for internal workloads, as I said. On the next slide, let's see in detail our new financial structure. So as you know, H125 was marked by the success of our refinancing with a first bond issuance and the implementation of the first EU taxonomy aligned green loan by a European cloud provider. We have a solid debt profile with a net debt of just over 1 billion, available liquidity of 307 million and a controlled leverage of 2.7 times in line with our group debt policy. At the end of February 25, all of the group's debt was hedged and had an average interest rate of 4.4%, including margins and commissions. The successful refinancing was also marked by a diversification of funding sources with no major debt repayment before FY2030. Our main sources of financing now are a 500 million in senior unsecured bonds at a fixed rate of 4.75%, maturing in 2030. This inaugural bond has refined part of the group's existing debt. It has been rated BB- by S&P Global Ratings and BA.3 by Moody's. Second, a 450 million green bank loan maturing at the end of 2029. Third, a multipurpose drawable credit facility for 200 million, not yet drawn, maturing at the end of 2029. And last, a loan of 200 million euros from the European Investment Bank. I will now hand over to Benjamin to talk about our outlook.

Thank you, Stephanie. Before we move to the Q&A session, so let me reconfirm our guidance for FY 2025. After a solid H1, which was in line with our expectations, we reconfirmed our FY2025 guidance. So we expect FY2025 like-for-like revenue growth between 9% and 11%. We expect on a full year basis an adjusted EBITDA of circa 40%. On CapEx for fiscal year 2025, we anticipate total capex to be between 30 to 34% of our revenue, with a split between recurring capex expected between 11 to 13%, and growth capex expected between 19 to 21% of our revenue. Finally, we expect an unleveraged free cash flow to be above 25 million euros on a four-year basis, improving compared to FY 2024. And we can now open the floor to your questions.

Thank you very much, sir. Ladies and gentlemen, if you'd like to ask an audio question, please press star 1 on your telephone keypad. Please make sure that your line is not muted until I send a reach equipment. So once again, star 1 for questions. Our first question this morning will be from George Webb calling from Morgan Stanley. Please go ahead. Your line is open.

Morning, Benjamin and Stephanie. I've got three questions, please. Firstly, it looks like a good second quarter. Can you talk a bit about how you're thinking about the second half and what you've seen so far in March and early April? I guess when we look more broadly, any signs of emerging weakness? We've seen some parts of software and IT services complex start to talk about that. And I guess within that question, the context of your reiterated 9% to 11% guidance, the low end of that guidance could mean that you could still get away with an 8%-ish number in the second half. So if there's anything you've seen in March and April and how you think that second half will be useful. Second question, just with regards to tariffs and supply chains at present, how are you managing the manufacture of servers out of Canada into your US operations? And lastly, with regards to the topic of generative AI workloads, How big or small are your ambitions in that space? We've seen over the years an increasing number of neo-clouds out there that are rapidly investing into GPUs to create pure play data centers. Are you interested in doing anything at larger scale on that Gen-AI side? And how do you think about the potential ROI from some of those GPU workloads and the useful life of those chipsets? Thank you.

Okay, thank you for these three questions. So I'll take The first question on the March and April and on the Gen AI and then let Stephanie answer on the tires. So the momentum that we see for H2, as you saw, we confirm our guidance and indeed we see that the trends you're asking for March and April are in line with our expectations. So we don't see in the latest number a change to our annual trajectory. we see that all our growth engines are working well, meaning public cloud, meaning AI, meaning sovereignty. Of course, even if there is always some uncertainties due to the current macro situation. That's why we maintain the guidance for the full year. For the question on Gen AI, so indeed, we have as you know, different offerings. We have hardware offerings with GPUs. We have also the inference software tools. So you saw that the contribution to public cloud growth in H1 is around 2%. So for coming from AI. And as we are positioned in the inference market, rather than the training market, we are able to respond to an ever-increasing number of customer use cases in these very specific inference markets. And thanks to, we have indeed an extensive range. So we will continue as part of a to add on the hardware side the new GPUs on a regular basis to tackle this inference market. Also developing our software toolbox which we call AI Endpoints. And this is coming to general availability in the next week. It was in beta, now it's coming to GA. And this will continue to fuel the growth of AI and so of public cloud in the coming quarters. And that's about it. Then, Stephanie, on the tariffs.

Yes, hi, George. To answer your question on the tariffs, I'll start with the revenue, then I'll get back to the CapEx. First, one thing very important to mention is that we're a multi-local company. What it means is that basically we sell through our U.S. subsidiary, the U.S. customers, and we deliver service for our U.S. customers in our U.S. data centers. So, so far we've done the assessments on the revenue, and our revenue are not impacted by the tourists. Obviously, we monitor very closely the situation, but what we can tell you is that we don't see an impact so far. Now turning to the CAPEX, which was your question, I mean, yes, we are manufacturing our servers in Canada. From what we have analyzed so far, I mean, the servers are not impacted by the tariffs. So in total, the impact on our CAPEX would be marginal. And yes, again, here, I mean, this is a moving situation, so we keep monitoring the evolution. and minimal expected on the capex.

Okay, thanks. Thank you very much, sir.

Our next question will be coming from Toby Ogg, calling from JP Morgan. Please go ahead. Yeah, hi, morning, and thanks for the question. You mentioned there at the beginning a shift in some of the concerns of private and public organizations in Europe in the context of the geopolitical environment. Could you talk about whether you're seeing that dynamic being reflected in any notable increases in the pipeline or whether you're seeing this actually translating into growth across any of your product lines? And if you're not currently seeing this, could you talk about the pathway from here and when you would expect to start seeing that dynamic translate into pipeline growth or revenue growth? Thank you.

Yes, very good question. Indeed, the geopolitical context has truly evolved in the past month. That said, we have been positioned in this data sovereignty market since our creation. So it's been 25 years that we are positioned on this segment, meaning that we provide every day our customers with an open, responsible, and trusted cloud. So it's not, for us, a shift into our positioning. Indeed, we provide immunity to extraterritorial laws, the data portability, and this commitment that we have for data privacy to open source has always given an edge and also served us for these H1 results. So, short term, what do we see? We see that indeed in our customer discussions, uh we see more and more businesses because has come from a tech debate to more a strategic debate so definitely this is in our customer discussions more on the ceo agenda today and uh we definitely are the natural partner thanks to our strategic positioning we are the natural partner as the european cloud leader for to answer to these growing needs that said the project the contracts, migration, the migration project, it takes time for customers. So our strategy is to remain focused on enhancing our product offering and continue to build our long-term relationship with the public organization mentioned, the private, so they know we are ready to answer their needs. And of course, mid-term, we are perfectly positioned to answer customer needs when these increase Well, welcome.

Thank you.

Thank you very much for your question, sir.

Ladies and gentlemen, as a reminder, if you have any questions or follow-up questions, please press star 1 at this time. We'll now move to Ines Mau calling from BNP Paribas. Please go ahead.

I can hear you.

Your line is open.

Can you hear me? Yes, we do. Good morning. Congrats for the great results. I just have two questions. So I see the rest of the world revenue growth accelerated to the height in Q2. And it stands as to how much U.S. contributed to it. In general, U.S. is growing more than this, I suspect. Do you see this as sustainable for the rest of 2025? And my second question is on the seasonal push you made on hardware capex. Are you expecting some uptick in demand for which specific products, or is it more to avoid any potential headwinds from playing on servers?

Okay, so I suggest, Stephanie, you take the first one on the CapEx, and I'll answer a second on the U.S. contribution.

Yes. So thank you for your question. So as we said, I mean, indeed, we have some seasonality on our CapEx, we decided to do some proactive acquisition and purchase of components to anticipate first the supply shortage, also to be ready to answer to the demand. As of today, like we said, we are confirming our guidance. So we are ready in any case for issue and we anticipate the CAPEX to reduce in issue. But as for the revenue, like we explained, I mean, we do see a surge in the concerns, in the discussions that we have with the customers, but it's too soon to factor any specific impact on the supply chain.

Thanks Stephanie. And indeed on the growth of the US business, we don't disclose the US growth specifically, so it's indeed included in the rest of the world growth. But as you saw, we had a very, very strong growth during the last quarters and we have confidence about the perspective for the next quarters. In the US, most of our business is coming from private cloud universe. as I mentioned, coming from the tech segment, thanks to our very good performance price ratio. And it also seduced some big companies, so as you mentioned, like Five Guys, the hamburger company in the U.S. So yes, we see it sustainable considering the performance of the last quarters.

Thank you.

We'll now move to Derek Marcon of Bernstein. Please go ahead.

Yeah, good morning. I hope you can hear me well. I'm far from cool. I've got four questions, if I may. The first one is on the availability zone and the local zone. Can you give us or share with us some metrics that will help us to understand the dynamics of these new offerings, so the three ADs and the local zones. My second question is about telephony and connectivity. Can you tell us what's the weight of this business today and the outlook for this business and what can you do to mitigate the revenue decline there? My third question is on recurring capex, so 11.4% of sales in H1 2025, and you guide for 11% to 13% for the full year. So should we expect you to be at the upper end of this range, or any possibility for you to beat that guidance? And my fourth question, last question, is about the a recent announcement of a large contract in France around the data for healthcare sector. And Microsoft, I think, won a second tranche of this contract. And the message from the customer was that there were no other players capable to beat Microsoft or to compete with Microsoft on this type of RFP. Have you participated to this RFP and what was missing for VHcloud to get this deal? Thank you.

Okay, thank you for the question.

So I'll take the first on the AD and local zones and on the large contract. Microsoft and Stephanie will answer the telephony and the CapEx H1 and guidance. So on the availability zones and the local zones. So first maybe on the local zones. Indeed, we have 23 local zones so far, and we are on track to open more than 15 new local zones in FY25.

So that should make close to 40 local zones.

The local zones, as you know, allow us to grow in new geos with lower capital intensity with our co-location model to offer public cloud products. We don't disclose our revenue so far for the local zones. We are currently focusing on rolling out, on opening the new zones in line with our deployment plan to accelerate both the geography deployment and the product deployment. And it's a phase of testing the market, testing the customers on the product as usually when we launch, I would say, data centers and we are typically for the local zones in this phase. As for the availability zone, so the AZ, indeed, so this is contributing to our public cloud growth, which is strong as you saw in H1. Again, it's about also technology deployments. We have deployed it in Paris, as you know. It's about enriching the products for the availability zone. So we have object storage launch. Now we are launching, we have been launching also compute network and block storage and will continue to enrich the rhythm of product availability into the availability zone section of our product. So the main data I'd say today is truly the momentum of delivering the product and this fits into the public cloud growth and the ARPAC growth of our public cloud segment.

And Jean-Charles, any metric on the number of customers that you can share with us or the ramp up of customers?

This is not a data that we disclose, Stephanie.

Hi, Derek, this is Stephanie. So I take the next question. So on telephony and connectivity, I mean, you're right, it's still a challenge for us. It's decreasing activities, even if they are smaller and smaller over time. It impacts mostly our French business. This being said, it remains for us an opportunity to do cross-sell and to offer to our customers some opportunities to move within the web cloud, but also to public and private cloud. So what we are doing is that we are doing some tactical investment on these segments to renew the offer, to strengthen the support, and to keep the benefits of having this pool of customers for the rest of the activities. I saw that your last question was on the CAPEX. I mean, like we said, you know well the business, you know that we have also some seasonality on the CAPEX. Traditionally, it's also linked to the innovation cycle of our suppliers. this year it's accentuated and increased by this push that we've decided to do but what we can tell you as of today is that we see a sort of reversal in issue so as to remain in the guidance and be in a position as of today to confirm the guidance and so as a reminder the for the maintenance it's going to be between 11 and 13 percent and for the gross capex we estimate it to be between 19 and 21 percent so That's how we see it as of today for the full year.

Thank you. And regarding the Health Data Hub in France, the contract related to the Health Data Hub?

Yes, you're right. So on the last question on Health Data Hub, so indeed the government has just announced, and again in France on Monday, that they will reissue the Health Data Hub contract called for tender. It has not happened yet, so we will closely monitor that and see what's in the request. As always, we have enriched our offerings, and as we did last time, we'll study carefully what's requested and how to answer to that.

But this has not been issued yet.

Thank you very much, Perfecto.

Thank you very much, sir. Ladies and gentlemen, as a final reminder, please press star 1 if you have any questions.

We do not appear to have any further questions at this time.

I'll turn the call back over to the speakers for any additional or closing remarks. Thank you.

Thank you for these questions and attending for this call. I'd like to wrap up to this strong semester. So we delivered, indeed, solid like-for-like revenue growth, combined with strong operating leverage driving an improvement in the adjusted EBITDA margin and the cash flow generation. So we remain focused on executing our cash generation trajectory. And from a business perspective, we indeed benefited from a continued strong demand for our data sovereignty offerings and we continued to roll out new products across both public and private cloud. We also demonstrated our best-in-class positioning in sustainability with a strong ESG score. Finally, we successfully completed our refinancing with the implementation of the first EU taxonomy-aligned green loan by a European cloud player and the issuance of an inaugural bond. So with this solid semester, we confirm our FY25 target, like-for-like growth between 9% to 11%, and adjusted EBTA margin of circa 40%, capex between 30% to 34% of our revenue, and an unlevered free cash flow above 25 million euros improved compared to last year. So thank you very much again, and we wish you a great day.

Bye. Thank you very much. Ladies and gentlemen, that will conclude today's presentation. Thank you for your attendance. You may now disconnect. Have a good day and goodbye.