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.