Sesa Spa

Good afternoon, this is the Coruscall Conference Operator. Welcome and thank you for joining the full year 2036 Consolidated Results Conference Call. As a reminder, all participants are in listen-only mode. And after the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, then they 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, Head of Stakeholder Relations and Sustainability of SESA. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining the SESA group presentation. Representing CESA today are Alessandro Fabbroni, Group CEO, and myself, Jacopo Laschetti, Head of Stakeholder Relations and Sustainability. Earlier today, the Board of Directors approved the consolidated financial results for the FOI ended April 30, 2026, and the new industrial plan covering the fiscal year 2027 and 2028. The corporate presentation is available on the SESO website and will serve as a reference throughout today's conference call. During today's presentation, Alessandro will first review the group's financial performance for the fiscal year 26, then present the main strategic priorities and targets of the new industrial plan 27-28. I will then provide an overview of our sustainability achievements and value generation for our stakeholders. Before Alessandro concludes with his final remarks. Now, I give the floor to Alessandro.

Good morning everybody and thanks for joining our group presentation. In a digital market supported by growing demand for data management and data protection, driven by the increasing adoption of AI and automation, the service group calls the fiscal year 2026 by achieving all industrial and financial targets set out in the 2026 and 2027 industrial plan by delivering a strong organic growth twice than the market trend and by increasing our market share and our role of digital integrator able to combine technology, digital platforms and vertical applications with AI adoption. In particular, we are pleased to report that we achieved all financial targets in the upper end of our guidance that we communicated to the financial market. And we are starting now the new fiscal year 2027 with a double-digit growth in revenues and we expect also in profitability. In the fiscal year ended April 30, 2026, the SESA Group reported consolidated revenues and added income from Euro 3.6 billion Up 7.9% year-on-year compared to performer results, that means like-for-like performance, and up by 10.6% against reported ones. Consolidated BDA reached €260.4 million, increasing by 8.2% year-on-year compared to performer, and by 10.6% against reported results. with an EBDA margin stable at 7.2%. The second half of 2026 marked a clear acceleration in our path with revenues growing by 9.8% year-on-year and an EBDA increasing by 9.9%. In the Q4 2026 alone, group revenues reached €915 million up 9% year-on-year While EBDA amounted to Euro 69 million, up 8.2%, with a quarterly EBDA margin at 7.6% of revenues. The group closed the fiscal year 2026 with around 6,700 people. That means a 3.6% increase year-on-year, but on the other hand with a stable trend during the second half of the year that confirms our strategy to be more and more focused on operating efficiency combined with scalable growth and the adoption in increasing way of air and automation. Consolidated revenues show positive contributions from all growth sectors. ICTVAS reached €2.25 billion, growing 8.6% year-on-year, with a strong acceleration in the second half, up 13% year-on-year. Growth was entirely organic and supported by increasing demand for data management and private infrastructure, driven by DEI adoption. and the growing request of digital sovereignty and security solutions. Green DAS achieved Euro 412 million in the year, up about 20% year-on-year, driven by growing energy requests from business segments, resulting from the acceleration need of data management, governance and private AI solutions. Software and system integration sector reported 909 million euro revenues, growing by 3.8%, despite slower demand in some manufacturing districts, while with a significant 7.5% increase in Q4 only. Business services finally reached euro 159 million, up 3.2% year-on-year, fully organic, supported by the development of digital platforms and vertical applications dedicated to the financial services industry with an expected return to double-digit growth in FY27 thanks to some main contracts that we acquired during the second half of FY26. Consolidated VDA increased to around Euro 260 million up 8.2% compared to performer results, so like for like, and up to 10.6% compared to reported figures, driven by the positive performance across some sectors, particularly sustained by ICT and Green DAS. The ICT DAS sector reported ABDA for Euro 101 million up around 13%, with ABDA margin improving to 4.5%, gaining 20 basis points in comparison with 4.30% of the previous year. The green DAS sector received EBDA for Euro 29 million increasing by 18.4% compared to Proforma and so on and so forth with a stable EBDA margin at 7.0%. Software and system integration recorded EBDA for Euro 96.6 million up around 2% year-on-year with a solid 5% growth in the second half reflecting the positive impact of organizational re-engineering implemented throughout the year. Finally, business services reported an EBITDA for around €30 million, up 9% year-on-year, with an EBITDA margin increasing to 19% of revenues. Group consolidated EBIT adjusted for good amortization and non-monetary cost reached €197.5 million, increasing by 6.5% compared to performer results and by 9.6% versus reported ones after depreciation and amortization for euro 55 million and provisions equal to 8.2 million. The reported EBIT amounted to euro 152 million up 4.3% in RONIA compared to performer results and 8% versus reported 2025, after a good amortization for Euro 37.5 million, up 15% year-on-year. In the FY26, the group benefit from significant reduction in net financial expenses equal to 34 million down 16% compared to 41 million year-on-year, driven by lower interest rates and by the FY26 improvement in financial efficiency and net financial position. The group P&T adjusted for good amortization reached Euro 106 million up 10.7% year-on-year compared to performer results and 13.3% compared to reported 25. Net income after taxes reported amounted to Euro 80.6 million up 13.2% compared with Euro 71 million as of April 30, 2025 on a performer basis and up 20% year-on-year compared to reported results. The FY26 was also characterized by a solid set of financial results and strong cash flow generation. The operating cash flow reached Euro 205 million driven by profitability growth and higher efficiency in working capital management. After 110 million of investment, net up 10 million of non-corrupted disposals. The full year 26 110 million euro investment consists of 50 million of capex in digital platforms for the groups of submission and of 60 million dedicated to selective set of small and vertical M&A and in particular focus on the program of minority interest acquisition to drive the organizational simplification. After the 110 million of investment and Euro 40 million distributed to shareholders through Deedens and Shared By Back during the year, the net financial position improved significantly from Euro 75 million of April 2025 to Euro 17.5 million net debt of April 2026, up by around Euro 60 million. While excluding the FRS liabilities, the group net financial position was equal to net cash for Euro 182 million as of April 30, 26 compared to Euro 158 million as of April 30, 25. With a so positive picture of FY26 results, I give the floor to Jacopo to present an overview of our ESG results and our value generation programs for the stakeholders.