Sesa Spa

This is the course call conference operator. Welcome and thank you for joining the CESA group full year 2026 consolidated nine months results conference call. As a reminder, all participants are on 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 Jacopo Laschetti, stakeholder relations and head of sustainability. Please go ahead.

Good morning, and thank you for joining the CESEC Group presentation. Representing the group today are Alessandro Fabroni, Group CEO, Caterina Gori, Head of Investor Relations and Corporate Finance and M&A, and myself, stakeholder relations and head of sustainability. Earlier today, the Board of Directors approved the consolidated financial results for the nine months of fiscal year 26, ended January 31st, 2026. 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 our key business developments and achievements.

Good morning everybody and thank you for joining our group presentation. In a challenging market that presents great growth opportunities driven by enterprise digitalization, widespread adoption of cloud and data protection, and integration of AI and automation, CESA is strengthening its market share by leveraging the role of leading digital integrator in Italy across the key areas driving digital transformation as cloud, data management, cybersecurity, digital platforms and AI. The Italian digital market is expected to grow by approximately 4% in 2026 and 2027 period, sustained both by demand for technologies and solutions enabling AI, and the increasing need to integrate and manage environments that combine AI with data governance and data protection, fully compliant with national security and regulatory requirements. In that scenario, CESA accelerates its growth in line with the industrial plan guidance by combining technology, platforms and vertical applications to drive value creation and innovation for enterprises and organizations with a growth path of two times the Italian digital market trend. In the nine months ended January 31, CESA reported consolidated revenue equal to $2.7 billion up 11.2% compared to reported figures, and 7.5% compared to pro forma figures, with an MBDA equal to 191 million, up 11.5% here on here compared to reported, and 8.2% compared to pro forma 25, with an MBDA margin increasing to 7.1%, and the Group EIT adjusted equal to 82.1 million, up 12% year-on-year compared to reported figures, and 8.8% against pro forma 25 figures. The third quarter 26 alone shows a strong acceleration in growth with consolidated revenue achieving EUR 1.1 billion, up 10.5% year-on-year, an EBITDA rising to EUR 77 million, up around 12% year-on-year, and the group EIT adjusted achieving EUR 37 million, up 10.4%, driven by above higher operating profitability and a 20% greater reduction in quarterly net financial expenses. Consolidating results show positive contribution from all group sectors in comparison with the 9 months 25 pro forma figures. ICT VAS due to Euro 1.7 billion, up 7.2% year-on-year. Fully organic, with strong acceleration in third quarter 26 alone, up 14.4% year-on-year. Thanks to the increasing demand for technology and digital integration, driven by growing data management and protection, linked to AI and automation adoption. green vaes achieved euro 307 million up 21 year-on-year expanding its double digital organic draw experience in first half 26 and driven by rising energy demand impacted by digitalization ai and automation adoption System integration delivered €663 million up around 2.5% year-on-year, showing a resilient performance despite slower demand in some made-in-Italy districts and the ongoing organizational re-engineering process. Finally, business services reached €120 million up 9% year-on-year, fully organic, supported by the development of digital platforms and vertical applications for the financial services industry, with a progressive focus on security compliance capital markets and finance segments. In the third quarter alone, revenues accelerated by 12.6% year-on-year, thanks to the start of some multi-year contracts with major Italian banks. Consolidated BDA increased by 11.5%, 8.2% compared to pro forma figures. achieving €191 million, with an EBITDA margin for 7.1% compared to 7.0 year-on-year, driven by the strong growth achieved by BAS, both green and ICT, and business services sectors, and the progressive improvement of software and system integration sector quarter by quarter. Segment's contributions to EBITDA were as follows. ICT VAS reported 76 million up 13% year-on-year, with an EVDA margin of 4.5% up compared to 4.3% year-on-year. Green VAS delivered Euro 21 million EVDA up 22% year-on-year, with a stable EVDA margin at 6.8%. System integration and software recorded EUR 71.6 million, up slightly by 0.2%, with an EBITDA margin of 10.8% compared to 11.1% year-on-year, with a great return to growth in the third quarter alone, up 3.5%, with strong quarterly BDA margin equal to 11.6% compared to 11.3% in Q3 2025 alone and 9.9% in Q2 2026 alone. Finally, Business Services reported Euro 19.6 million BDA up around 9% year-on-year, with a stable EBITDA margin at 16%. In Q3 2026 alone, EBITDA grew by around 12% year-on-year, supported by new multi-year contracts with leading clients, with a quarterly EBITDA margin of 17% compared to around 12% in Q2 2026 alone. Consolidated adjusted EBIT reached €145 million, up around 9% year-on-year, after depreciation and amortization of tangible and intangible assets for €40 million, up 13.5% year-on-year, and provision for €6.2 million. The reported EBIT was equal to €112 million. up 7% year-on-year, after good demortization for around 30 million, up 15% year-on-year. Net financial expenses decreased significantly, down 20% in the third quarter alone, thanks to lower interest rates and group financial efficiency initiatives. The consolidated EAT adjusted amounted to €88.2 million, up 15% year-on-year compared to reported figures and around 10% compared to performed, reflecting the growth in operating profitability and the lower financial expenses, while Group EAT adjusted achieved €82.2 million, up 12% year-on-year compared to reported and around 9% compared to performed. In the nine months of 2026, the group also delivered a strong cash flow generation, sustained by organic profitability growth and a more efficient working capital management. The consolidated reported net financial position was equal to €58 million, a significant improvement for €33.7 million compared to €92 million as of January 2025. This performance reflects a great last 12 months operating cash flow, net of €150 million of investments last 12 months, of which €90 million in the first 9 months of 26, with €90 million related to M&A, of which €55 million in the first 9 months 26, and after €41 million in dividends and buybacks last 12 months. The consolidated net financial position, excluding IFRS liabilities, was active for €147 million of net cash, up around €40 million compared to €108 million of net cash of January 2025. Now, after presenting the so positive set of financial results, I give the floor to Caterina to explain our M&A and shareholder value creation strategy.