Sesa Spa

Good morning. This is the Chorus Call Conference Operator. Welcome and thank you for joining the full year 2026 Consolidated Three Months 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. Jacopo Lascetti, Stakeholder and Corporate Sustainability Manager of CESA. Please go ahead, sir.

Good morning, and thank you for joining this CESA group presentation. Representing the group today are Alessandro Fabroni, Group CEO, Caterina Gori, Investor Relations and Corporate Finance and M&A Manager, and myself, Secure the Relations and Adopt Sustainability. Earlier today, the Board of Directors approved the consolidated financial results for the first quarter of fiscal year 2026, ended July 13, 2025. The corporate presentation is available on the CETA website and will serve as a reference to our today's conference call. Alessandro will begin by providing an overview of our key business developments and achievements.

Good morning and thank you all for joining today's call. In the first quarter of the new fiscal year, Cesar returned to growth, confirming the achievability of the guidance of the new industrial plan. Overall, first quarter 2026 shows a solid recovery in consolidated revenues and VDA, along with a significant improvement in net profitability. supported by a substantial reduction in financial expenses and the improvement of the net financial position compared to April 2025, with a clear and progressive reversal of the main trends of revenues and profitability. In the first quarter, on a consolidated basis, the group recorded revenues for €846 million up 8% and EBITDA of €61 million up 7.2% year-on-year, and an adjusted net profit for Euro 29.8 million up 6.4% year-on-year, with an adjusted group net profit equal to Euro 27.9 million up by 4.5% year-on-year. The trend in human people shows 6,593 employees as of July 2025, with the moderate growth up 0.9% compared to April 2025, in line with our target of growing operating efficiency of the new industrial plant. On organic basis, revenues increased by 2.2% year-on-year, EBITDA by 4% year-on-year, and adjusted group net profit by 2.3% year-on-year, compared with the pro forma figures of July 24, restated to include the quarterly results of Green Sun, company acquired last November 24. Consolidated revenues by sector show a positive trend compared with for quarter 25. ICTDES, with revenues for Euro 497 million, down 2.7%, entirely organic, showing progressive recovery from the 8.2% decline for Q25, with a return to growth expected from Q2 2026, following the double-digit increase in the July and August 2025 backlog. Digital Green VAS with revenues for Euro 111 million up 24.7% year-on-year driven by 20% organic growth and strong business demand supported by rising energy needs related to digitalization and AI adoption. Software and system integration sector with revenues for Euro 220 million up 2.8% year-on-year despite the slower demand in some key made in Italy districts and the re-engineering activities in some business units and finally business services sector with revenues for Euro 37 million up by 3.0% year-on-year which continues to grow entirely organically supported by the increasing focus on digital platforms and vertical applications and the expected acceleration in upcoming quarters thanks to new agreements with some major retired banks. Consolidated EBITDA increased by 7.2% year-on-year, reaching EUR 61 million, up 4% versus the performer figures, and driven by the 20% growth of green BAS and business services sector, while the ICT BAS and software system integration sector remain broadly stable year-on-year. ICT BAS achieved an EBDA of EUR 22.2 million down 0.9% EUR with an EBDA margin equals to 4.5% as of July 25 up from 4.4% as of July 24. Digital Green BAS reported an EBDA of EUR 6.2 million up 18% year-on-year, with an EBITDA margin of 5.6% as of July 25, slightly down from 5.9% as of July 24. Software and system integration sector achieved an EBITDA of €23.5 million, down 2.7% year-on-year, with an EBITDA margin equal to 10.7% as of July 25, compared to 10.8% in the full year 25. This reflects the re-engineering operation in some business units with a BDA margin expected to stabilize in full year 26 at the same level of the full year 25. Business services reported an BDA equal to EUR 7.3 million up by 25% year-on-year with an BDA margin of 20% driven by the progressive focus of revenues on proprietary digital platforms and vertical applications developed over the past two years. Adjusted consolidated EBIT was equal to EUR 47.3 million up 4.2% year-on-year after depreciation and amortization of tangible and intangible assets equals to 12.7 million up 15% year-on-year and provisions for around 0.7 million. As expected, in the new industrial plan, Net financial position show a significant reduction equals to 12% compared to first quarter 25 and equals to 36% compared to fourth quarter 25, driven by lower interest rates and efficiency measures in group financial management. The first quarter adjusting consolidating net profit was equal to EUR 29.8 million, up 6.4% year-on-year, reflecting stronger operating profitability and reduction in financial expenses. The adjusted group consolidating net profit reached EUR 28 million, up 4.5% year-on-year and up by 2.3% versus the performance figures as of July 24. Finally, consolidated report in net financial position as of July 2025 equals to a net debt for Euro 65 million shows a significant improvement compared to Euro 75 million as of April 2025 thanks to the operating cash flow in the quarter and lower investment compared to the previous year with CapEx and M&A equal to approximately 11.5 million in first quarter 26 alone. Now I give the floor to Caterina to present our new strategy in terms of M&A and the main resolution of the last shareholders meeting held on August 27, 2025.