Hello and welcome to Exclusive Networks 2023 full year results. My name is Alicia, and I will be your coordinator for today's event. Please note this call is being recorded, and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero, and you will be connected to an operator. I will now hand you over to Hacène Boumendjel, Head of Investor Relations, to begin today's conference. Thank you. Thank you. Good morning, everyone, and welcome to Exclusive Networks full year 2023 earnings conference call, which is broadcasted live and will be available on demand on our website. The presentation slides and press release for this call are also available on our website in the investor relations section. First, I would like to draw your attention to the disclaimer on slide two of this deck regarding the information contained within this document, and in particular, the forward-looking statements. I invite all participants to read this. Today's call is scheduled to last about 60 minutes, and I'd like to introduce our key speakers this morning, Jesper Trolle, CEO of Exclusive Networks, and Nathalie Bühnemann, our CFO. The presentation will last about 35 minutes and will be followed by a Q&A session. If we don't have the time to take everyone's question in this session, I am available to answer your questions and happy to take any of your questions following up the call. I will now pass it over to Jesper for a few opening remarks and his overview of full year 2023. Jesper, the floor is yours. Thank you, Hacène, and good morning, everyone, and welcome to our 2023 full year earnings call. Today, I'm thrilled to present a record performance in sales and profitability, with gross sales surpassing EUR 5 billion for the first time in our company's history and ahead of guidance on all financial targets. I'd like to take a moment to thank all of our talented people around the world for their relentless commitment and contributions. They are what truly sets Exclusive Networks apart and always allow us to deliver these exceptional results. What 2023 really shows is that our model is scalable and our position at the heart of the cybersecurity ecosystem is paying off. We are looking at major elections over the next 12 months impacting roughly half of the global population. There continues to be ongoing geopolitical tensions, and GenAI has become a double-edged sword that is leveraged in cybersecurity defenses but also helps bad actors speed up the development and deployment of malicious code at scale. Even for the largest and most sophisticated enterprises, it's now more a question of when rather than if they will experience a breach. These factors are driving the underlying need for adequate cybersecurity defenses and continue to point to greater security spend, which, according to analysts like Canalys and Morgan Stanley, is estimated at around 10%-11% in 2024. Let's now turn to the highlights of an excellent 2023. Gross sales were up 16% year-on-year in constant currency and exceptional performance after the strong growth achieved in FY 2022. Like other companies connected to IT spending, we saw a lengthening of sales cycles and greater scrutiny of budgets, so I'm even more proud of our team's performance given this challenging macro backdrop. We delivered record profit levels with adjusted EBIT up 20.6% to EUR 186 million on a reported basis and an adjusted free operating cash flow of EUR 245 million. These results reflect the resilience, the diversification, and the scalability of our model. I'd like to single out our retention rates because they show how vendors and customers value Exclusive Networks as a trusted partner. Retention is really a measure of growth with existing vendors and customers over a rolling 12-month period. Retention continues to be strong at 113% for vendors and 112% for customers, showing that the majority of our growth has been derived from existing vendors and customers, resulting from our strong relationships and the stickiness of the model. We also welcome two new companies to Exclusive Networks with the acquisition of Ingecom and Consigas in the back half of 2023. Both are excellent strategic fit and have performed strongly so far as part of the Exclusive family. Finally, our momentum in the Americas continues with growth up 30% year-on-year on a reported basis, further strengthening our ambitions to continue to develop this important market. Taking a step back, Exclusive Networks has a strong track record with a 10-year gross sales CAGR of 31% on a reported basis. This solid, longstanding, sustained momentum really comes down to three fundamental drivers. First, CIOs continue to see cybersecurity as a top spending priority. You see this in our large, growing, addressable market, which continues to create headroom for growth. Second, we have a unique model and value proposition that is built on services and a highly technical know-how in cyber with a high ratio of engineers to sales resources. This explains why we've been able to build a best-in-class portfolio of vendors as well as a strong, diversified route to market with more than 20,000 downstream partners, of which more than 6,000 are new partners added over the last five years. And third, Exclusive Networks has a clear, proven long-term growth levers that are further accelerated through acquisitions with more than 20 completed acquisitions over the last 10 years. Let's talk about one of these points, the large, growing ecosystem that we operate in. On the left side of the chart, you see the size of the market at the time of our IPO, and on the right is the estimated size of the opportunity in 2024 based on cybersecurity market growth as detailed in various research reports. We currently estimate that our serviceable addressable market is $50 billion. Our ability to continually grow our addressable market through vendor acquisition and expansion, geographical expansion, and M&A has seen us almost double our serviceable addressable market in the last four years. Over that time, Exclusive Networks has grown even faster than the market, more than doubling our gross sales in the last three years, which comes back to the unique model and the strength of our value proposition. The acceleration of digital transformation, leveraging the cloud and now also GenAI, continues to pose a challenge to security teams' ability to secure the new expanded parameters and new digital infrastructures. Every enterprise, regardless of industry, depends on IT and data, and according to a study by IBM, the average enterprise now uses around 60 different security tools to defend themselves. We also see greater regulatory requirements being introduced by governments and industry bodies around the world to drive more disclosures and more transparency on cybersecurity breaches. We've seen this with the recent announcements of major breaches at brands like MGM and Clorox. In the U.S. alone, in October and November, there were 357 known ransomware attacks. Indeed, the macro drivers for cybersecurity remain structural and long-term, demonstrating why cybersecurity has now become a boardroom and a CIO priority across most global enterprises. Moving on to our performance by cybersecurity subsegment, our breadth and depth of our portfolio of vendors consisting of both established leaders and new disruptors allows us to outperform the major subsectors within the security market. We are well-established in network security, the largest subsector at roughly $20 billion, thanks to our deep relationships with Fortinet and Palo Alto Networks, two of the leaders in this space. Network security remains a strategic priority for us because of our strength, the size of the market, and also our consistent track record of outgrowing the market. You can see that we are outgrowing endpoint security, a $9 billion market, as well. As the landscape of technology evolves, we are witnessing a steady shift away from outdated legacy systems toward more advanced solutions driven by increasing customer demand for innovation and efficiency. In this dynamic environment, SentinelOne stands out as one of the front-runners, demonstrating its leadership and has disrupted the market with its pioneering AI-powered security platform. Our ongoing partnership with SentinelOne has been instrumental in meeting the evolving needs of our clients, and we are thrilled to witness robust growth and momentum. Together, we are navigating this transformative journey, empowering organizations to embrace cutting-edge technologies through Singularity XDR, SentinelOne's pioneering security platform. Lastly, DevSecOps is another sizable subsector at an estimated $10 billion. Here, we are seeing very strong growth ahead of the markets. Through our acquisition of Nuaware back in 2020, we have rapidly increased our expertise and vendor offerings within this important market. Many of you will be familiar with our five growth levers. Each of these levers is interdependent. They help expand our addressable market, thereby compounding our growth and creating a flywheel effect that ultimately enables us to outgrow the cybersecurity market. I'll pick two of them today. The first theme is our vendors, who serve as the foundation of our growth. We have very strong relationships with vendors spanning established leaders like Palo Alto Networks, Fortinet, and F5, as well as newer disruptors like Netskope, Varonis. Our relationships remain sticky, as evidenced by our low vendor churn rates of less than 2% in the last five years, over which same period we've added 123 new vendors, many through our Ignition and Nuaware businesses. The second theme is our service offerings. We are often referred to as a distributor, but I like to say that Exclusive Networks is, at heart, a services business, helping vendors and partners accelerate their sales of cybersecurity solutions. So while we are doing distributions for our vendors, this only makes up one of the many services, and we continue to focus on extending our value through the addition of new services. We'll talk more about this later. We've often been asked to break down our gross sales by hardware, software, and support and maintenance, so here it is. We are seeing high growth in support and maintenance, making up 26% of our gross sales in FY 2023, up from 24% in FY 2022. While hardware continues to grow in our business, it has become a smaller part of our overall gross sales mix, down two points to 25% in FY 2023. Software is slightly up in our mix and now accounts for roughly half of our gross sales. In looking at our cloud-based portion of our sales mix, it's grown to roughly one-third of our gross sales and continues to outperform the rest of our business. We see this trend continuing, and with this shift to cloud being an opportunity for us to add new vendors and downstream routes to market, but as well an opportunity to develop new types of services and revenue streams for this part of our ecosystem. Now, let's move on to focus on one of the five growth pillars, the continuous expansion with our vendors. One such example is the expansion with BeyondTrust, a leader in intelligent identity and access security with whom we have expanded into Middle East and Central Europe regions with. While we often talk about these geographical expansions, it's also important to note that we remain very focused on investing alongside our vendors. As our vendors expand their capabilities, either organically or through M&A, we are working alongside them, ensuring that we are developing the needed capabilities for their portfolio. One such example is around SASE, which is a framework dedicated to deliver network security services as a cloud computing service. We are currently developing a SASE competency center to help the channel sales teams build holistic SASE expertise through an education and certification program. In Q4, we managed to become the first certified Forti SASE distributor in the UK with Fortinet, and with Palo Alto Networks, we have significantly expanded our Prisma SASE capabilities and resources in EMEA, making them available to all of our downstream partners. Another growth lever for Exclusive Networks is our ability to identify and partner with new emerging cybersecurity vendors that are coming to market. It is critical that we are working with cutting-edge technology and staying at the forefront of innovation. Working with new and innovative vendors often means working on new threats and future risk vectors, all helping to expand our growth opportunity. I'll pick a few examples of new vendors that we added organically in 2023. Let's start with cybersecurity risk assessments, where we have teamed up with Mastercard in EMEA and APAC to help organizations around the world assess their level of cybersecurity defenses and processes in place. Within data loss preventions, we have established a partnership with Cyberhaven, who are leveraging AI to help enterprises detect, manage, and stop the most critical insider threats to their most critical data. With the help of AI, Cyberhaven solutions can learn the data movement within the organization and quickly detect suspicious so-called lateral movement, i.e., who is accessing what data. Again, these are just two examples of the several new vendors that we welcomed and onboarded in FY 2023. Moving on to services, we often talk about our services as a core differentiator and a competitive advantage for Exclusive Networks. As a cyber expert, we are entirely embedded within our vendors and partners' solutions, meaning we provide added value beyond the products. I often get asked, "What do we actually do within our different service offerings?" Simplistically, we break it down in three distinct areas: presales, which is all about helping vendors with marketing services such as market development, demand creation, through to leads development, and solution design. The second area of our services is everything we do around the transaction. Here, we provide services such as financing and global deal management. And finally, we offer a lot of post-sale services, which is everything we do after the actual sale. These services include support and maintenance agreements, implementation, as well as training and certification. The key point is that, as a service provider, we have and are continuing to develop our services so that they plug into the needs of our vendors and our partners. Zooming in on our post-sale services, I would like to highlight the scale and the breadth of our service offerings. From a scale perspective, we are today building and delivering services for more than 100 vendors, and last year alone, we handled more than 30,000 technical support cases and delivered more than 10,000 mandates of professional services. This scale is a strong reason why vendors and partners choose to work with us, and we are continually looking to evolve our offerings to make sure that we are one step ahead of demand and that we can complement our partners and vendors where they see gaps. In 2023, we launched organically several new service offerings, including a cyber risk assessment service where we helped identify cybersecurity gaps within organizations together with our partners. Additionally, we are looking to acquisitions to help us extend the breadth of our offerings. As a highly cash-generative business with a strong balance sheet and low leverage, we continue to use M&A as an enabler of our strategy. With 20 acquisitions completed during the last 10 years, you can see at the top of this slide that most of these early acquisitions were really focused on extending our reach and building out our global platform. However, as we just spoke about, acquisitions are also a way for us to add strength and depth to our current service capabilities, as we did with the recent acquisition of Consigas, which helps accelerate delivery of technical trainings globally, specifically around Palo Alto Networks. We remain acquisitive. We have a healthy pipeline and several ongoing discussions with potential acquisition targets. The other acquisition completed in 2023 was the addition of Ingecom as part of our Ignition Technology business. Ingecom is a Spanish value-added distributor focusing on emerging and disruptive cyber technologies, with gross sales growing from EUR 38 million in 2022 to EUR 55 million in 2023. Due to the strong fit, we combined Ingecom's customer base within the Ignition Technology brand to expand our presence in Southern Europe. Ingecom's strong growth confirms the high potential that we are seeing in them and is a testament to the quality and the focus of the team and the benefit of the strategic combination with Ignition Technology. We are confident in these opportunities Ingecom will continue to bring as they help strengthen our value proposition dedicated to the specific needs of emerging disruptive vendors. As we move forward in our presentation, let's turn our focus to a topic that is integral to our strategic vision and daily operations: our sustainability impact. This slide details our commitment to sustainability and to be a responsible business with responsible business practices. Our people are our greatest assets. You heard me say this many times before, and we invest heavily in their and our own success. So we are very focused on our employee engagement and are measuring this annually through our engagement survey. Our target is to get our employee engagement rate up to 77% by 2025. Another goal for us is to use diversity as a key part of our drive for innovation and growth. Today, we have a high female representation across the business of 44%, and we are committed to have at least 40% female representation within senior management roles by 2025. But clearly, growth must go hand in hand with sustainable environmental impact, and we are continuing to drive towards improving our current EcoVadis rating. Finally, driving an ethical and safe business is non-negotiable and a key part of the value that we bring to our vendors. As a result, we verify the integrity of all of our business partners around the world. When speaking about people and talent, one of the most important challenges that we are all facing within this industry is the ever-growing cyberskills gap. This is something that we want to address, not just within our own business of Exclusive Networks, but also across the industry at large. The problem is very clear. Only 15% of the global cybersecurity workforce today have access to formal cybersecurity education. But enterprises need more experts to defend themselves against growing cyber threats. This creates a need for education and training. And this is why we launched the Exclusive Academy in 2022 with our partners Guardia and Oteria. This is a three-year program combining practical on-the-job experience with training to gain cyber qualifications. Our partnership with Cal Poly in the U.S., where we opened an on-campus facility, aims to match the supply of cyber talent with demand. This gives students the opportunity to work alongside our cybersecurity professionals to gain practical hands-on experience alongside their studies. In practice, students get long-term part-time jobs ranging from one to three years to gain experience in sales and engineering and other roles within Exclusive Networks. As of January 2024, there were 27 FTEs each who had committed to come work until their graduation date. It's great to see how this program is driving applications and interest through word of mouth. I see Cal Poly as a model of university sales/tech apprenticeship, which can be replicated at other educational establishments around the world to form part of the solution to this chronic shortage of cyberskills and talent. Regarding our own talent, we today employ more than 2,600 people worldwide, of which roughly a quarter are tech profiles. Our model, as I mentioned before today, is highly scalable. In a nutshell, our platform can support significant revenue and profit growth with sustainable and gradual increases in our people. You'll see this clearly on the chart on the right-hand side detailing the evolution in the number of people that we are employing. The average tenure in our business is five years, and our average age is currently 38 years, which reflects the seniority and the technical makeup of our people. Clearly, talent within Exclusive Networks is a top priority and our key differentiator. Therefore, it is critical that we have the right people in the right positions and that we invest in the right level of motivations, training, and development for them. With that, let me conclude and take a step back and recap 2023, which again was a very strong year for Exclusive Networks. Firstly, the long-term drivers remain solid within cybersecurity as it continues to be a top priority for businesses and CIOs around the world. We, as a business, continue to have multiple growth levers with a best-in-class vendor portfolio, a unique place within a large and growing cybersecurity market, and coupled with a strong track record, which leans heavily on our great people and our highly technical skill set within cybersecurity. I am very excited about the opportunities ahead of us in 2024 and what these will bring for our talented people, our vendors, our partners, and also our shareholders. With that, I want to thank you for your time today, and I will now hand it over to Nathalie for the final. Nathalie? Thank you, Jesper. Good morning, everyone, and thank you all for joining us today for our 2023 earnings call. I'm happy to report that Q4 was another strong quarter, allowing us to post a record performance for 2023 on both top line and profitability growth. Let's look at the highlights first on slide 22. In 2023, we beat all our financial targets. Our gross sales came close to EUR 5,247,000,000, above our full-year guidance, showing a constant growth of 16% compared to 2022. Our net margin reached EUR 468 million, above the high range of our guidance of EUR 465 million. In terms of profitability and cash generation, our performance was even better with adjusted EBIT at EUR 186 million, 4% above the high range of our guidance, and our adjusted operating free cash flow reached 128% of our adjusted EBITDA, significantly above the 80% targeted. Before entering into the analysis of our financial performance, I would like to draw your attention to the changes in our IFRS 15 accounting treatment driven by the ESMA guidelines. As you may know, in October 2023, the ESMA published concrete illustration of the application of IFRS 15 in the IT distribution sector. This publication leads us to change our accounting treatment on IFRS 15 revenue. After assessing the ESMA guidelines and in agreement with our auditors, the revenue of software licenses would be recognized on a net basis starting full year 2023, like maintenance and services revenue. Exclusive Networks applied this restatement for full year 2023 publication with pro forma on full year 2022. Consequently, our IFRS 15 revenue for the year 2023, reflecting the new accounting treatment, reached close to EUR 1.6 billion compared to an IFRS 15 revenue of EUR 3.9 billion, according to the previous policy. You will find all the details you need for full year 2022 and full year 2023 restatements, as well as the quarterly pro forma comparisons in the appendix of this presentation. Let's now move on our fourth quarter sales performance. Let's detail our Q4 2023 top line performance on slide 25. As expected, we continue our good momentum in Q4, reaching EUR 1,585,000,000 gross sales compared to EUR 1,454,000,000 in Q4 last year. This is the first time in the group history that we have a quarter above EUR 1.5 billion. We posted a reported growth of 12% at constant and 9% reported in a context of high basis of comparison. As a reminder, our gross sales were up 42% during the last quarter 2022. As you can see on the right side of the slide, our sales performance was largely fueled by our organic growth, 7%, whereas 2% were driven by M&A. Let's move now to slide 26 that shows our performance by region. Starting with EMEA, our 9% growth at constant in Q4 was strong, especially compared to the 44% growth last year. EMEA is the driving force of the group with continued sound momentum in the most mature market. As for the Americas, the region posted an outstanding 33% growth in Q4 with 38% at constant, despite a strong performance already performed in Q4 2022. The Americas' activity is fueled by large deals aligned with market standards and benefited in Q4 from slippage of large deals towards the end of the year. Finally, with regards to APAC, the second half of the year marked a reversal in the trend performance with stabilization in Q3 and recovery in Q4. Q4 is the second quarter in a row with a positive trend compared to the previous quarter. The measures implemented by the new management in APAC have started to bear fruit and bode for better results in the near future. Let's now have a look at our geographical breakdown and size of our deals on slide 27. We can see that Americas is gaining traction, accounting now for 15% of our gross sales, whereas APAC accounts for 7% and EMEA for 78% in Q4. This growth is mainly fueled by large deals above EUR 1 million, which account for 22% of our gross sales this quarter compared to 18% of our gross sales last year. It's mainly driven by the significant growth in Americas in Q4 2023, partially explained by the slippage of large deals from Q3 to Q4. We will now move on to our financials full year results. Let's start with a snapshot of our P&L on slide 29 and have a look at the main achievements of the financial year and the exceptional progress of our profitability. As our gross sales and net margin both increased by 14% this year compared to 2022, our adjusted EBIT increased at a record 21%, crossing in H2 the 40% margin of adjusted EBIT given at the time of the IPO. In full year 2023, our operating leverage reached 39.7%. The progress of our profitability was achieved thanks to a strong work on our operating expense deals while continuing to significantly develop our organic business. I will first comment on our full year gross sales performance before detailing the profitability per region. Starting with the drivers of our growth in full year 2023 on slide 30. As a reminder, entering 2023, the growth of the cybersecurity market was expected to normalize after exceptional performance in 2021 and 2022. Despite this context, we continue to reach a double-digit growth outperforming the market and above our financial year targets. After a strong first half at 22% constant growth rate, gross sales have still increased by 12% concentrated in H2. In full year 2023, our gross sales reached EUR 5,145,000,000, growing at 14% reported and 16% constant rate. On the right side of the slide, you will see the key factors explaining the 14% growth reported. First, the volumes driven by organic growth and representing 15%. Then, M&A for 1%. Price net increase for 1% for full year 2023. And these effects being partially offset by a - 3% effect linked to the currency fluctuation. Let's move now to slide 31 showing our gross sales breakdown per geography and per deal size. In terms of deal size, we continue to expand in large deals. Those above EUR 1 million now account for 18% of our full year gross sales compared to 15% last year, mainly driven by the dynamic growth in Americas. In terms of geographies, EMEA is quite stable at 78%. The Americas account for 13%, and APAC went down to 8% of the total group sales, reflecting the dynamics in the respective regions. Now we are on slide 32. I will detail one of the main achievements of the year, which is our continuous high profitability level. Our net margin reached EUR 468 million, growing by 14% at the same pace than our gross sales. Consequently, our net margin rate is constant at 9.1% and shows a stabilization over years. Our adjusted EBIT reached EUR 186 million, growing by 21%, much faster than our gross sales and net margin. As a result, we are very proud to have almost reached 40% of adjusted EBIT on net margin, a major jump compared to the 37.3% in the year of the IPO. As stated before, this has been achieved thanks to the tight control of our operating expenses and to our business model fueled by large deals. While our gross sales and gross profit were both at 14%, mainly fueled by organic growth, our operating expenses only increased by 10%. The weight of operating expenses by region decreased by 170 basis points, mainly driven by strict monitoring of resources and automation of back office. In 2023, our operating expenses accounted for 51% of our net margin at regional level compared to 53% in 2022. Regarding our regional performance on slide 33, our focus on operating leverage is clearly bearing fruits. In EMEA, gross sales reached EUR 4 billion, growing 16% constant, 14% reported. In our biggest and most mature region, we are very proud to post this heightened growth after a record year in full year 2023, 2022, sorry. The adjusted EBIT in the region outpaced the gross sales with an increase of 19% due to our capability of monitoring our operating leverage. In the Americas, we continue our fast organic development of the region with gross sales growing more rapidly than the group at 30% reported and 34% constant. In this region, while the focus is clearly to grow and gain market shares, we were also able to strengthen our profitability due to the larger size of deals executed in a stable OpEx environment. As a result, our adjusted EBIT in Americas grew by 26% to reach EUR 17 million. In APAC, our continued efforts and the implementation of changes in the organization led to an improvement of the trend towards the end of the year. We managed to protect our profitability with an adjusted EBIT of EUR 19 million. Let's now complete our P&L view on slide 34 with the items below adjusted EBIT. Pursuing the expected trend recorded in H1 2023, the financial results are nearly doubled because of several financial factors. First, the increase in interest rates on our senior debt for more than EUR 11 million due to the general increase in financing costs on the market in 2023. Despite the financial instruments taken by the company at the end of 2022 to protect the financial costs, the cost of our long-term financing debt has doubled from 2022 to 2023. Second, there is the impact of the full year working capital financing for an additional EUR 10 million. As a reminder, working capital financing contracts have been implementing as the year progressed, the largest part being implemented in November 2022, resulting in a full year impact in 2023. Last, there are some other factors out of which we have the hyperinflation in Turkey. Moving to the income tax, the income tax expense has remained quite stable despite the increase in operational profitability. This is mainly due to the accounting of additional one-off deferred tax assets, all in all resulting in a tax expense of EUR 25 million in 2023 compared to EUR 27 million last year. The effective income tax rate was 19.2% in 2023 compared to 24.7% in 2022. As a result, adjusted net income has reached EUR 108 million in 2023, up 8% compared to last year. Let's now move to our balance sheet structure on slide 35. Our balance sheet is mainly composed of goodwill and intangible assets from acquisition for roughly EUR 1.4 billion. This amount is decreasing each year due to our amortization policy. Working capital amounted to EUR 17 million at the end of the year and showed a decrease of EUR 83 million compared to last year. We will detail the components of working capital at a later stage of the presentation. As of December 31st, 2023, financial gross debt amounted to EUR 516 million compared to EUR 523 million at the end of last year. Gross cash and cash equivalents at EUR 369 million, all in all resulting in a net debt position of EUR 158 million at the end of the year compared to EUR 260 million at the end of last year. We will detail the free cash flow improvement in the next slide as the main driver to explain our strong cash generation in 2023. Let's now explain our adjusted operating free cash flow evolution for the full year 2023. We We are slide 36. Our operating free cash flow has improved by EUR 53 million, meaning more than 20% growth, mainly driven by two key factors. First, our increasing profitability reflecting in our adjusted EBIT component for EUR 32 million. Then, our trade working capital improvement for EUR 24 million, resulting from, first, a strong positive impact of inventory for EUR 173 million, resulting from the normalization of component delivery and reduction in lead time. But, however, this positive impact has been counterbalanced by negative effects for EUR 157 million, linked first to the growth of our sales for EUR 92 million, and then to factoring programs for EUR 65 million. It's not intuitive that factoring has negative impact in the free cash flow breach because of extension of these programs. However, the magnitude of the extension done in 2023 was much lower than the volumes factored in 2022. All in all, our adjusted operating free cash flow reached EUR 254 million, representing 128% of the full year 2023 EBITDA. Let's now present our net working capital on slide 37. The net working capital reached EUR 17 million compared to EUR 100 million in 2022, an exceptional very low level at 0.3% of our gross sales, which is not a standard level of net working capital and reflects the impact of several one-off key factors. The largest driver being the significant reduction in inventory by EUR 51 million, close to 20%, in a context of increasing activity. This reduction is largely driven by the normalization of lead time in transportation due to the end of the shortage component crisis, and to a lesser extent to the decreasing weight of our hardware activities in our sales mix. Moving now to our last achievement, a leverage ratio divided by two at 0.8 presented on slide 38. This significant reduction was due to our continued cash generation led by increasing profitability and net working capital improvement. More importantly, our current leverage ratio, as well as our healthy financial balance sheet structure, offers us comfortable room for potential M&A opportunities and future growth. Let's end our financial presentation with our key takeaways on slide 39. 2023 was once again an outstanding year in terms of financial performance, beating all our financial targets. Our financial achievements, as well as financial pillars, herald for further financial performance records. First, our historically low leverage below 1 will boost and accelerate our M&A strategy. Then, our strong cash position will allow us to finance our organic growth and potential large deals opportunities. And finally, our capability to outperform the market, and especially in our more mature region, EMEA, shows that we have the right vendors' portfolio and the most comprehensive services offered for the market we serve. I present then our guidance for full year 2024 on slide 40. Considering the current market conditions, we expect now our gross sales to grow in a range between 10% and 12% at constant currency, our net margin to reach a range between EUR 500 million and EUR 515 million, and our Adjusted EBIT to reach a range between EUR 200 million and EUR 210 million. All this should generate an adjusted operating free cash flow of 80% of Adjusted EBITDA. Let's conclude with our shareholders' return on slide 41. For full year 2024, considering the current market dynamics, as well as the highly competitive environment, the board has decided to give priority to support further M&A developments and expansion of organic growth. Consequently, the board has proposed no dividend payout in 2024. With that, I want to thank you all for your time today, and I will now pass it over to Hacène to open our Q&A question. Thank you. Thank you, Nathalie. Thank you, everyone, for your attention. Now, operator, you can open the Q&A session. As a reminder, if you would like to ask a question or make a contribution on today's call, please press star one on your telephone keypad. To withdraw your question, please press star two. We take now the first question from Hugo Paternoster from Kepler. Your line is open now. Yes, thank you. Good morning. Can you hear me? Yep. Good morning, Jesper, Nathalie, and Hacène. My first question would be on the overall market and the state of the demand with a lot that has happened recently with all vendor reports. Also that I feel that your guidance remained a bit cautious on the organic growth. I just would like to have a bit of granularity, if it is possible, on your 10%-12% target, namely, what are your key assumptions behind that? Okay. Well, welcome to the call, and thank you, and good morning. I would describe the overall market sentiment as similar to what we discussed last year, particularly as we move through the year. Last year, it was clear that we saw a strong start to the first half. Part of that was driven by backlog releases due to some of the supply chain challenges that were noticed across the industry in 2022. But we also often talked about that we saw a continuation of delayed sales cycle, lengthening sales cycles, more budget scrutiny, more scrutiny on spending in general. We saw this playing out during the second half in particular. You see that on the growth rates that we have delivered. The way I think about FY 2024 is kind of a reverse of the two. We are seeing demand trends right now that are quite similar to what we saw towards the second half. And I think we will continue to have this market sort of market sentiment. And then I believe that as we hopefully will see a gradual release of interest rates and more light in the general macro environment, I believe we'll see an acceleration towards the second half of FY 2024. Okay. Clearly, clearly. I take your note on the guidance. We do not think it's cautious. We think it's very realistic. Last year, when we put guidance, people thought it was pessimistic. But I think at the end, we demonstrated that it was very realistic because, obviously, we had visibility into the underlying factors that supported that guidance. And it's no different this year. Okay. Okay. Another question. I know that you are not reporting that, but it would be mainly on the demand per end industry and sector. Would it be possible for you to qualify or to quantify the latest development through the whole industry, banking, government, automotive, and so on? Is there any particular move, particular sentiment to notice there? We don't really break this out as you highlight. What I would say is there is not a meaningful difference in the shift of our sort of end-user verticals. Insurance and banking still remains a very significant end-user vertical, and so does government around the world, with the exception of the U.S., where we really do not participate in the government business. But outside of that, it's quite stable. But we don't break it out. Okay. Okay. Very clear. And the last one is on the services. So I'm very pleased that this quarter, you provided more granularity between hardware, software, and services. And just one question. Would it be possible for you to provide us more, I would say, granularity on the services directly performed by Exclusive Networks, not as an agent? Is it something that you can comment? The current level and potentially the target? It's not something that we are breaking out at this point. As I put out in my prepared remarks, this is a key focus for us. We see services as, of course, a very accretive part of our business, but also as a way to just strengthen our overall value proposition and the services we bring to bear both upstream to our vendors and downstream to our partners. Maybe at a later stage, as things become more material, we can think about breaking it out. But at this point, we don't break it out. Okay. Thank you. Very clear. It was my last question. Thanks a lot. Thank you. Thank you very much. We'll take now our next question from Joe George from JP Morgan. Your line is open now. Yes. Hi, guys. Thanks very much for taking my questions. I have three, please, if you don't mind. Firstly, two for you, Jesper, if you don't mind. The first one would just be a clarification on the guidance, please. The 10%-12% growth rate, just to sort of clarify on the previous question. Operation in H2, i.e., does the guidance bake in an improved demand environment to be expected in H2? Do you want the answers before you give the rest of the questions, or? Yeah. That's probably easier. Yeah. Thank you. I think the short answer is yes, it does. As I just said, we expect that the first half of this year will probably be a replay of the second half of last year in terms of the demand environment. And we think that the second half of this year is going to be I wouldn't say a replay of the first half because some of that was coming from backlog releases, but will be an acceleration in the general demand environment. Yes. Okay. Okay. Very clear. Thank you. Understood. And then my second one for you, Jesper. Would just be a question following the Palo Alto Networks results, where they sort of emphasized the shift towards platformization, which partly includes longer free introductory periods for multi-year contracts. I was just looking to understand if this is a trend that you guys have seen yourselves. And if so, what sort of impact can we expect from an Exclusive Networks perspective? Yeah. I mean, generally, I think we made this comment many times. We don't really comment on other companies' announcements. In this particular case, I would say we have and continues to have a very deep and a very longstanding partnership with Palo Alto Networks. We've talked in other calls about this move we are seeing towards platforms. And this is certainly ongoing. In my prepared remarks, I mentioned how companies are using an average of 60 different cybersecurity solutions. So managing that for any CISO, no matter how experienced you are, is a challenge on its own. And so with a company like Palo Alto Networks that has a broad platform to bring to the market, I can understand why they want to showcase these solutions across the platform. And actually, I see this as an opportunity for us to work with them on making sure we make the most of this announcement. Okay. Sure. Understood. Thank you. And then my final question would just be to you, Nathalie, please. Just looking for a little bit more color, please, on the EBIT margin bridge between FY 2023 and FY 2024. Just looking to understand where is the margin expansion expected to come from through FY 2024? Is it mix shift to U.S., product mix shift, further cost controls? Just any color there would be great. I guess through the midterm, how should we think about that 40% as a percentage of net margin? Should we think about this as moving higher now? Yeah. Any color there would be great. Thank you. Thank you, Joe, for your question. That's a good question. I can answer partially to the question, meaning that for sure, in 2024, we'll continue to have large deals in our accounts, especially in the U.S. So it will have an important impact on our operating leverage as it had over the last two years. We will continue to monitor our OpEx as we always do. We will continue our automation and digitalization in the back-office functions. So all in all, it's for sure that we'll continue to improve our operating leverage. I cannot disclose at that stage, Joe, any target for what we will have in the future. And I'm pretty sure that we will be able to disclose such targets in a future and soon Capital Market Day. Perfect. Okay. Thank you very much, both. Cheers. Thank you. Cheers. We'll take now our next question from Balajee Tirupati from Citigroup. Your line is open now. Hi. Thank you, Balajee from Citigroup. Two questions from my side, if I may. Firstly, on cash flow, could you clarify if the improvements achieved in 2023 will also have an impact of some reversal in 2024? And I'm not sure if you mentioned this, but could you quantify the amount of factoring that the group did in 2023 versus previous year, and how should we think about it going forward? And then I can answer the question. Okay. So I answer this one, Jesper. So it's a good question. In 2023, at the end of the year, the factoring on the balance sheets amounted to EUR 285 million compared to EUR 190 million at the end of last year, which means an increase of EUR 95 million, EUR 96 million. In this increase, you have roughly EUR 54 million, EUR 55 million that are non-recurring, meaning that it's because we have open new countries, new extensions, and you will not get it next year. But the rest is linked to the increase in the activities. So all in all, if you take out and I think this is what you want to know. If you take out the non-recurring impact of factoring for EUR 54 million, and you take out the non-recurring impact of inventory for EUR 51 million, and if you take out all this, you will come back to an adjusted free cash flow towards EBITDA just above 80%, which was the target we had. We are at 85% if you take out the non-recurring impact, which means that this is the reason why we continue to guide on 80% for next year. There could be that we will have non-recurring new impacts next year, but we cannot forecast them in advance. So what I can tell you is the normalized, standardized cash flow we can generate with this activity, it's 80% EBITDA. Does it answer your question? Yes, it does. Very helpful. Also on inventory, the current level, would you say that is a more sustainable level, or inventory has moved down below the level where you would be more comfortable? No. I think that we are now back to a normal situation with inventory. It should remain stable because we are now in normal delays for lead time. And in terms of it's true that our hardware business is decreasing in terms of weight, but it should not have such a significant impact on our inventory line. Yeah. I would just add, Balajee, that if you go back to the 2022 announcement, one of the points you made was that given the sort of lack of visibility of the supply chain, we actually took the decision at that time to significantly ramp up our inventory positions for certain products. And I would say that it has served us very well, as you see, in FY 2023. But now we are sort of back to our more normalized levels, also considering the weight of hardware in our overall mix. Very useful. Then the second question is on support and maintenance business and where growth in 2023 was closer to 25%. Going forward, should we expect continued growth outperformance in this part of business given your focus here? And also, could you share any color on margin profile of this part of business versus the rest of the business, the rest of the group? Yeah. We don't break out that granular view on margin profiles. I think of this in the light of proportionally a two-point decline in hardware and a two-point increase in support and maintenance. I mean, when customers choose to maybe hold on and refresh their hardware platform with a little bit of delay, you'll obviously see that the weight of new hardware sales will decline in ratio, and the growth in support and maintenance will go up. And I think this is the real underlying effect that you are seeing between the two numbers, and with software obviously being stable but still being about half of our gross sales, but stable in the mix. From a more midterm perspective, should we expect the revenue mix where it is to be broadly stable, or support and maintenance should continue to grow in share? Any color on that? I mean, as a sort of gut-feel view, I think you would continue to see a little bit of a move between these two parts of our gross sales mix. I can't tell you where the floor is. I'm not sure we are. I'm not sure it's way below where we are, but I think there will be probably a gradual shift between the two. Very useful. Thank you. Thank you. As a reminder, if you would like to ask a question or make a contribution on today's call, please press star one on your telephone keypad. We'll take now our next question from David Vignon from Stifel. Your line is open now. Thank you. Good morning, Jesper and Nathalie. Two questions on my side. The first one is on working capital. Nathalie, in the past, you mentioned that a normalized level would be between 3.5% and 4% of gross sales. You are currently sitting at 0.3%. Obviously, you highlighted some one-offs in the year. But when should we expect this level to normalize? Are you still comfortable with a 3.5%-4% of gross sales? And the second question. Yeah. Just give us the second question, David. Sure. So my second question is on the topline guidance and your exposure to firewall. So Jesper, you mentioned nearly 11% growth for the cybersecurity market in 2024, and that Exclusive Networks should continue to outpace that level, which is not yet reflected in your guidance. Could you comment on your firewall exposure and the sustainable level of growth that you expect in the firewall end market, considering that some of your vendors have been talking about low- to mid-single-digit growth as sustainable, while some other vendors have been talking about more high-single-digit growth? Yeah. Do you, Nathalie, want to cover working capital, or you want me to go first? Okay. David, let me go on the second question first here. So the market, I mean, I referenced two sort of market growth rates, right, from Canalys and Morgan Stanley at 10%-11%. There are a lot of different numbers out there, but I think they all, depending on which angle you look from, they all add up to around 10%-11%. Our guidance sort of sits on both sides of that. We have set 10%-12%. As we always have talked about, we, of course, as a business, we are driving towards topline growth, and it's important for us because it's a metric that shows what is our relative size within the serviceable addressable market we have. But I think, as all of you also understand, the topline is driven by we get to our EBIT number through margin, and the topline is really driven by either big deals with potentially lower margin rates or smaller deals with higher margin rates. That mix ultimately is driving the topline. We have assumed a mix that we think is fairly in line with what we've seen historically. That's how the guidance has been calculated. In terms of other companies coming with maybe weaknesses in firewalls, first of all, I just want to remind everyone that we are not the only route to market for our vendors. Oftentimes, they work with other distributors. We also don't have all of our vendors in all of our markets. We talk about this as one of our growth levers. And thirdly, there are many markets where we don't serve a particular vendor because we are not there. And so when you look at the global cybersecurity market, it takes the global context into play, but we are a subset of that. And so even if the market is growing at 10%-11%, we have an ability to outperform it if we do well. And so we are not a direct, how can I say, a direct derivative of our vendor's guidance for a particular subset of their products. If that makes sense. That's it. Thank you. So yeah, for the working capital question, what we did, David, this year, if you go to slide 37, we showed the gross trade working capital, which I think is the best line to follow if you want to get a standardized level of working cap. Because in the networking in the what we call trade working cap, other receivable, other liabilities, you have a lot of stuff in that lines that are difficult to predict or anticipate. So we have, especially this year, identified this line on our slide. And you can see that you are at 3%. In this line, we should be around 5%-7%, which we were in 2022 and 2021, which is a more normalized level for gross trade working capital. If you take out the non-recurring items I have assessed for factoring, around 55%, you are back to 4.5%, which is close to the 5% of standard gross trade working capital we are aiming at. Is this more clear? Thank you. Yep. Thank you. Okay. We are currently not taking further questions, so I'm going to hand over to Hacène to conclude the conference. Thank you. Thank you. Before we close the call, thank you all for your question. We invite you to take note of the next events presented on this slide, starting with Q1 2024 publication on April 29th. Just one quick highlight. We decided to publish Q1 and Q3 after market close to take into account different time zones. Also, after three years being a listed company, we would like to update the market on our strategy and the direction we have for the future. So we have planned the Capital Market Day in autumn 2024. More information on this specific event will be communicated later this year. Thank you for your attention. Now I leave the floor again to Jesper for a few closing remarks. Yeah. Thank you, Hacène. And thank you, everyone, for dialing into this full year earnings call. Thank you to all the ones who posed questions. So I just really want to end where I started, which is I'm very proud of the performance that our teams have delivered around the world. I think 2023 stands out as a very solid year in what was a challenging macro context. I look forward to 2024. It's a year that has just started, but we believe that we will see a gradual improvement as we move through the year. And certainly, cybersecurity remains the number one spending priority for CIOs around the world. And that, coupled with our base of vendors who are the market leaders and the disruptive vendors in the new segments, coupled with our technical skill sets and the commitment of our employees, makes me proud of what we can achieve together in 2024. So I'll leave you with that. And again, thank you, everyone, for listening into today's call. Thank you. Thank you for joining today's call. You may now disconnect.