Sesa Spa

Good morning. This is the chorus call conference operator. Welcome and thank you for joining the full year 2026 consolidated first half results conference call of CESA. 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 Laschetti, Stakeholder and Corporate Sustainability Manager of CESA. Please go ahead, sir.

Good morning, and thank you for joining the CESA group presentation. Representing the group today are Alessandro Fabroni, Group CEO, Katerina Gori, Investor Relations and Corporate Finance and M&A Manager, and myself, Stakeholder Relations and Head of Sustainability. Earlier today, the Board of Directors approved the consolidated financial results for the first half of the fiscal year 2026, ended October 31, 2025. The corporate presentation is available on the CESA website and will serve as a reference throughout today's conference call. Alessandro will begin by providing an overview of the key business developments and achievements.

Good morning, everybody, and thank you for joining our group presentation. In the first half of 2026, CESA started the implementation of the new 2627 industrial plan by evolving our data-driven, digital market-oriented and people-inspired platform for enabling the sustainable growth of corporates and organizations with a specific focus on organic growth and skills development. In a challenging market scenario confirming growing demand for digitalization, CESA has achieved its goal of consistent organic growth in revenue and profitability by strengthening our position in the key areas catalyzing digital transformations such as cybersecurity, cloud, AI and automation, vertical and digital platforms by enabling the value creation for our stakeholders. The group's transformation from technology to a leading digital integrator has improved with investment focus on skills development and the adoption of the so-called digital enablers. In the first half of 2026, on a consolidated basis, SESA achieved revenues and added income for Euro 1.6 billion, up by 12% year-on-year, and MDA for Euro 114 million, up 11.4% year-on-year, and net profit adjusted for around 50 million up by 17% year-on-year. On an organic basis, compared to the half-year pro forma, including the first half 2025 data of Greensand, consolidated revenues grew by 5.5% year-on-year, EBITDA by 6.0% year-on-year, and group net profit after taxes adjusted by 7.6% year-on-year. The second quarter 26 alone show a great acceleration in consolidated revenues, which achieved Euro 755 million, up 16% year-on-year compared to reported figures, and 9.4% like-for-like compared to Performa, and an increase of operating EBITDA by 16.6% compared to reported figures, and 8.4% compared to Performa. with a group EAT adjusted increase by 30% compared to reported figures and 17% compared to pro forma. Consolidated revenues show positive contribution from all group sectors. ICT VAS recorded 939 billion, up 2.1%, fully organic, with a great recovery compared to the decline in first quarter 25, with a down of 2.7%, driven by the high single-digit growth achieved in the second quarter, up by 8.1%. The positive November backlog trend, up by 25%, will support positive trend for next quarters. Digital grid VAS reported 210 million, up by 26% compared to the first tough 25% performance, driven by the extension of the double-digit growth achieved in Q26 and tends to a strong performance in the corporate market, driven by the increasing energy demand associated with digitalization and AI adoption. System integration and software sector reported euro 420 million, up by 4% year-on-year, showing resilient performance despite the slowdown of demand in some made-in-Italy districts and the re-engineering process affected some business units. And finally, business services achieved Euro 74 million, up around 7% year-on-year, extending its entire organic growth driven by the development of applications for the financial services industry. Consolidated EBITDA increased by 11.4% year-on-year, up 6% in comparison with the performer, reaching €114.4 million compared to €102.7 million as of October 2024, with an EBITDA margin of 7.1%, broadly stable year-on-year, thanks to the growth trend in the VAS sectors, both green and ICT, and the business services one. ICT VAS reported Euro 42.7 million, up 6.6%, with an EBITDA margin equal to 4.5%, up from 4.4% year-on-year. Digital Green VAS reported recorded Euro 14 million EBITDA up 30% compared to the first half 2025 pro forma, with a 6.7% EBITDA margin compared to 6.5% year-on-year. System integration achieved Euro 43.4 million down 1.9%, with an EBITDA margin equal to 10.3%, reflecting the re-engineering operations in some business units of the sectors, with an expectation of a BDA margin stabilization FY26 at a similar level to FY25. Business services reported Euro 11.6 million up 6.6% year-on-year and a 15.8% BDA margin, stable compared to the previous year. In the second quarter of 2026 alone, business services revenues accelerated with an 11% low driven by the start of some multi-year contracts not yet translated into a positive impact on profitability. Consolidated EBIT adjusted amounted to €86 million, up 9.2% year-on-year, up 2.5% compared to the performer, after depreciation and amortization for Euro 26 million, up around 14% year-on-year, and provision for Euro 2.7 million. Consolidated EBIT reached Euro 65 million, up 8.8% year-on-year, after amortization of intangible assets relating to customer list and know-how for Euro 17.5 million, in line with the 2026-27 industrial plan, Net financial expenses show a significant decrease, equalling 11% compared to first half 25, improving by 15.5% in the second quarter 2026 alone, compared to the second quarter 25, thanks to lower interest rates and the actions to enhance the Group's financial management efficiency. Consolidated EET adjusted amounted to €50 million, up 17.1% year-on-year and 7.1% compared to the pro forma, reflecting the growth in operating profitability and the reduction in financial expenses. Group net profit adjusted reached €45 million, up 13% year-on-year, from €40 million in the first half of 2025, up 7.6% year-on-year, compared to the pro forma 2025, while consolidated reporting at profit reached euro 34 million, increasing by 19.4% compared to around 29 million in the first half of 2025, up by 5.6% year-on-year compared to the pro forma figures. In the Peter Dunn review, SESA Group selected its M&A investment and improved its payout ratio in accordance with the new industrial plan. Group reported net financial position as of October 25, including €208 million of IFRS debt was negative, that means net debt for €119 million improving compared to €122 million. compared to the pro forma figures following last 12 months investment for €140 million of which €37 million in the first half alone including €80 million of F&A investments of which €23 million in the first half and after last 12 months buyback and dividend distribution of around €35 million of which €30 million in the first half 2026 Now I give the floor to Caterina for presenting our M&A strategy and the main resolution of the last shareholders meeting and board of directors of today.