Good morning. This is the Chorus Call Conference Operator. Welcome, and thank you for joining the Nexi First Half 2024 Financial 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 representing Star and Zero on the telephone. At this time, I would like to turn the conference over to Paolo Bertoluzzo of Nexi. Please go ahead. Thank you. Good morning to everyone, and welcome to our call for the results for the First Half of 2024. As usual, I'm here with Bernardo Mingrone, our CFO and Deputy GM, Stefania Mantegazza, who's leading our investor relations activities, and a number of other colleagues that may help us in case we have very specific questions. The program is very similar to the one that we had last time, so I will start by summarizing the key messages. Then we will deep dive on a topic that we believe is particularly relevant for Nexi, but most importantly for our investors and for the market. This time, we will deep dive on our cash acceleration formula and our capital allocation strategy. You remember last time we deep dived on our strategy on software and payment integration. This time, we've chosen this topic instead. Then I will hand over to Bernardo that will take us through results, and we will all come back for our Q&A session to answer your questions. So let me start at page three, as usual, with a summary of the key messages of today. First of all, in the first half of the year, in the second quarter of the year, we have continued to deliver our growth and, most importantly, a bit of margin expansion. And as we today communicate also our excess cash, we have, in particular, accelerated very, very materially our cash excess cash generation on the back of a number of positives. In particular, revenues did grow in the first half about 5.9%, with Merchant Solutions revenues up 7%, with a slight acceleration compared to in the second quarter compared to the first quarter, and with e-commerce that continues to grow on double digits. EBITDA did grow about 8% in the first half, with a bit of margin expansion close to 100 basis points. As a reminder, we remain committed to expand by at least 100 basis points for the full year. In the second half, we expect a higher EBITDA margin expansion also on the back of a number of efficiency and synergy acceleration measures that we have already put in place. Last but not least, in the first half of the year, we have seen a strong acceleration of our excess cash generation, which is the cash that we generate from our organic business, also after our investment in organic growth. In the first half of the year, we have generated EUR 383 million, which is up more than 40% compared to last year. There are phasing elements here, but in any case, it's a strong performance that compounds revenue growth, operating leverage, and CapEx reduction. Second key message, in parallel, we continue to invest to shape Nexi for future profitable growth. In the first half of the year, we had a number of very important areas of progress. Let me just point to some of them. In MS, we have accelerated the development of our direct channels in Italy that are so important given the evolution of the market there, as well as we have continued to accelerate our ISV partnerships across all our geographies. At the same time, still in MS, we had a strong development of our most advanced digital proposition. Just to name a few, we have launched first-to-market Apple Tap to Pay, not only in Italy, where we're market leaders, but also in Germany, where we are a challenger. Still in Germany, and I would say more broadly in DACH, we start to capture the benefits of the bundling of the Nexi and the Computop propositions across e-com and omnichannel. In Italy, we have started to serve Amazon on Bancomat Pay as an acquirer and just as a processor for Bancomat Pay. And just to add another one, we've launched a pretty strong partnership with Klarna in the Nordics, and we will extend it across other geographies as well. Last but not least, we continue to accelerate our efficiency and cost synergy delivery on the back of the group integration, as we did anticipate a few months ago, and the impact of this will become even more visible in the second half of this year. Third, and very, very important point, now this strong cash generation acceleration is allowing us to continue to progress our leveraging. We're in a net debt to EBITDA down to 2.8x EBITDA as of June. This will be 2.7x pre-share buyback effect. We confirm again that we will pay down EUR 1.3 billion of the debt maturities and therefore all debt maturities expected in 2024 and 2025 with the existing cash. Now, out of this, €220 million have already been reimbursed in April, and another €536 million will be reimbursed in the fourth quarter, clearly giving us a benefit on the cost of debt as well. Last but not least, as you remember, we announced in March a EUR 500 million buyback program across 18 months. We launched the program in May. We are progressing the program. We have now decided to accelerate the program and complete it in full for the full EUR 500 million by the end of 2024. On the back of the progress that we had also in the second quarter, we confirmed the guidance for the year, which, as a reminder, says that we'll grow revenues around mid-single-digit. We will grow EBITDA around mid- to high-single-digit with 100 basis points EBITDA margin expansion at least, and we will generate excess cash for more than EUR 700 million. Now, let me go in the deep dive, and I will cover basically two topics: what we call the Nexi Cash Acceleration Formula and our capital allocation strategy. Let me start with what we like to call the Nexi Cash Acceleration Formula, that I think is simple, is quite unique of Nexi, at least in some of the components. And let me take you through page four, going horizontally. First of all, top-line growth. We did guide the market for mid-single-digit in the year, in the first half, with a 6% growth. Second, our continued effort to contain OPEX growth despite inflation, despite higher volumes, despite investments in growth. Now, we expect OPEX to continue to grow at a low single-digit pace now this year, but also in the future. Combining top-line growth and this EBITDA margin and this cost-income reduction, we continue to see EBITDA acceleration and, in particular, EBITDA margin expansion that we are guiding to at least 100 basis points now and honestly also in the midterm. In the quarter, sorry, in the first half, we have grown EBITDA 8% with EBITDA margin expansion close to 100 basis points. Again, this EBITDA margin expansion positions Nexi at the very high end of our industry across not just Europe, but I think the US as well. And then, on top of this operating leverage, we will benefit. We are benefiting already from what we like to call cash leverage. We understand it's a little bit of an invented expression, but let me take you through it. We have CapEx that over time will continue to go down in absolute terms and, most importantly, in percentage terms. We will have, and we already have, no recurring cash items following the same path, therefore going down in absolute terms and in percentage terms. And now we will have also net cash interest expenses going down in absolute terms and in percentage terms on the back of the reduction of our gross debt, as well as, over time, we believe, a positive evolution of interest rates. So these three components maybe there have been a little bit of a drag of Nexi for Nexi on the back of the transformation we have done and the transformation efforts on the back of it, but going forward and already today, there are actually Nexi unique points of strength. If you combine the EBITDA margin expansion and the operating leverage with these components, this is what is generating excess cash, very strong acceleration. We have guided and we have committed to the market to generate at least EUR 700 million excess cash this year. In the medium-long term, we see this organic cash generation growth continuing strongly, and now we plan to be at around EUR 1 billion by 2026, which is only two years from now. In the first half of the year, we have generated already EUR 383 million, which is up more than 40%, also benefiting some phasing effect, but we remain committed to the more than EUR 700 million for the full year. Now, how do we plan to allocate? Let me discuss these excess cash and, in general, the capital. Now, let me start at page five, reiterating our strategic approach, and then I will go on the next page on the progress in the year so far. So, as you have understood from our previous conversations, now this excess cash now allows us, at the same time, to allocate capital to reduce debt quite rapidly, but at the same time, materially return capital to shareholders. Let me start with debt and leverage reduction. First of all, and we always like to remind it, we have a very well-balanced debt profile in terms of maturities and mix, with an average pre-tax cash cost of debt, which is at around 2.8%, which is actually slightly lower than what it was last quarter, and we expect, in general, cost of debt, absolute cost of debt, as I said before, to continue to go down. Second key point, now we have a target leverage of about 2-2.5x EBITDA by 2026 after further capital return to shareholders. This is a top priority. It's a kind of a precondition for us, and it's also a commitment. And what we are seeing now is actually give us a lot of comfort that that's the direction of travel that will allow us, at the same time, to return capital to shareholders. I want to confirm that we pay down €1.3 billion of gross debt that is maturing this year and next year with the existing cash. This is it in terms of debt and leverage reduction strategy. Second, now thanks to the excess cash we are generating, and despite our commitment to reduce target leverage to 2-2.5x EBITDA by 2026, the strong accelerated cash generation will enable us to structurally return capital to shareholders. Now, and therefore, we plan to allocate a material share of excess cash to shareholders on an ongoing basis, either via share buybacks or dividends, depending on market conditions. Therefore, you should not see the current buyback as an exception. For us, again, returning capital to shareholders either via buybacks or dividends, depending on market conditions, is the rule of the game, and we remain a structural characteristic of Nexi. Last but not least, as far as M&A is concerned, we will continue to remain extremely selective and focus on value-added creative acquisitions, normally on merchant books and/or strategic product and tech capabilities enhancement. But in parallel, we'll continue to sell non-core businesses, especially in the Digital Banking Solutions area, even if we are not in a hurry, and we will remain very rational in making sure that we capture the value that we associate with this business, but this will happen over time. Now, let me jump to the third and last page of this session to give you a more precise update on how this strategy has been executed in the first half of this year. As far as debt and leverage reduction, as I've anticipated, we are now down to 2.8 times versus the end of last year, 3.0. Actually, this 2.8 would be 2.7 pre-share buyback effect. The only reason why we are highlighting this is because this is just confirming our ability to leverage quite rapidly, 0.3 in half a year. Second, we have already reimbursed €220 million in April of gross debt, the debt maturities, and we will reimburse another more than €500 million by the end of the year, completing the full year commitment on this front. Second, in terms of return to shareholders, now we have announced this €500 million euro share buyback 18-month program. As I've anticipated, we have decided, the board has decided to accelerate this program to complete in 2024, and we feel very comfortable in doing it, considering the M&A outlook that we see for the rest of the year and into next year as well. At the end of the quarter, we had already purchased EUR 180 million equivalent of shares, 201 as of July 26. Again, as a reminder, we plan to cancel all the shares that we are buying back, and in fact, we've already canceled more than EUR 26 million shares. Last but not least, as far as M&A is concerned, we have closed the Sparkasse merchant book acquisition. We invested under about EUR 30 million, and we expect to complete the sale of the Nordic eID business by the summer 2024, and this should bring in something around EUR 100 million of cash. Unless something else happens that we don't see now happening this year, M&A could be a positive contributor to cash flow generator for the company. Let me stop there, and let me now hand over to Bernardo for a result. So, good morning to everyone. As you've seen, the second quarter and indeed the first half continues to exhibit solid revenue growth coupled with margin expansion and EBITDA growth. It's been a rather consistent second quarter in line with performance of the first quarter. We had revenue growing at 5.8%. That's close to 6% for the first half. Margin expansion has been close to the one percentage point we've guided for the year, and as Paolo said, we confirm guidance, and we stand by our prediction to improve margin by 100 basis points or more for the full year. EBITDA grew 7.5%, pretty aligned to the growth in the first half of 8%. The slight dip, I would say, in terms of EBITDA margin expansion really comes from the nature of the one-offs we had highlighted with regard to 2023, where we had some upfront project work which had very high EBITDA margins in the month of June of last year. But as I said, we expect EBITDA margin to have created by 100 basis points or more for the full year. Moving on to Merchant Solutions, again, similar performance as for the group, very consistent in the second quarter compared to the first quarter. We have a slight acceleration in terms of the top-line growth, 7.2% compared to 7% for the half. We have seen solid volume growth across the group, driven by international schemes, which contribute the most, I'd say, to our revenue growth. We've seen customer base expansion and e-commerce that continues to grow faster than the market. In general, I think Germany is an important geography for us, and we like to call out how SME Germany revenue growth has been double-digit in the second quarter. So good performance overall, I'd say, for merchant solutions as well. Moving on to issuing, we've had yet more consistency in terms of top-line growth, 5% in the quarter, 5.1% for the first half. We continue to see strong support for international schemes. This is particularly true in Italy and Issuing, where we have a very strong and solid growth of international debit, where we've reached more than 7.5 million cards, and obviously, that's very beneficial to our top-line given the, let's say, the more attractive economics associated to this. And issuing is where that one-off last year creates a bit of a step effect compared to both our profitability and our growth year-on-year. But I would say the continued upselling and cross-selling of our value-added services across the group and the progress we're making in advanced digital Issuing Solutions is another big contributor to our top line. So notwithstanding, let's say, the one-off from last year, we still have, I would say, very positive performance in Issuing Solutions as well. DBS, growth of 2.4% in the first half, slightly lower than that in the quarter. This is the business unit which is most exposed, let's say, to a more lumpy set of revenues coming from project work. This is just purely the nature of this business. So the difference in the quarterly performance isn't something which needs to be focused on. I think the overall plan is for this low single-digit growth to be confirmed for the full year, and we've seen positive contribution also coming from those businesses which do rely on volume growth like EBA Clearing and Open Banking in general. So good performance from DBS as well. So the overall revenue performance, which has been substantially in line with our expectations, absolutely consistent with the guidance we provided for the year. From a geographical basis, you can see broken down on slide 12, where Italy pretty much consistent quarter-on-quarter and for the first half at 6%. Nordics, as you know, a market which is more mature and therefore structurally has a slightly lower growth rate at 2% in the quarter. All I would do is highlight how DACH and Poland, in general, we've had, as a geography, DACH has had on the Issuing front a bit of a shift or, let's say, from a timing perspective, Issuing had a very strong first quarter in DACH and a weaker second quarter. Again, more to do with project work relating to some customers we have won in the region, which has kind of skewed the top-line growth towards the first half compared to the first quarter compared to the second quarter. But if we focus on merchant solutions revenue in Germany, we have been hovering around a very high single-digit or double-digit growth, which is pretty much in line with our expectations. Moving on to costs on slide 13, I'd like to underscore how significant work has gone into trying to limit our cost growth, which has upward pressure coming from volume growth, which we see, as I said, throughout the geographies, coming from inflation. Even though inflation is coming down, there is a tail effect to inflation in renegotiating contracts, which can do over time. So notwithstanding this upward pressure on costs, thanks to the work we're doing on our cost base and thanks to synergies, we've been able to limit this cost growth. Similarly to revenues, you can see how costs have been pretty flat in the first half with a similar performance in the first quarter compared to the second quarter. I'd like to highlight how, as you know, we're investing part of our capital in a right-sizing plan, in particular in Italy, where we have exits which will benefit our P&L in the second half of the year associated with the severance costs you will see in the transformation items. So we expect this cost growth to come down in the second half of the year. Moving on to CapEx, we have a 15% reduction year-over-year on the CapEx. CapEx tends to be seasonal. The second half is obviously heavier in terms of investment than the first half. I think Paolo summarized it well. We're on track delivering integration. The synergies coming from merging with Nets, and yeah, we continue to rationalize our cost base, as you saw earlier, and this means also closing data centers, moving towards our target, our four target core processing platforms. That work continues. The reduction, as I said, is going to be consistent for the year. We've often spoken about a EUR 50 million or so reduction in CapEx. I would stand by that projection for the year. Moving on to transformation costs. On the left side of this slide, we show how we have had a very significant reduction year-over-year in integration and transformation costs. These were the costs associated with merging with SIA, Nets, and completing the transformation of the three countries. And that is, again, consistent with the trajectory we had highlighted in the past with regards to reduction in transformation costs. Obviously, we have the large severance component. Only EUR 30 million of the EUR 130 million are cash. Round about EUR 70 million-EUR 75 million of the total EUR 150 million costs will be cash for the year. But again, if we treat that as a one-off, remember the last time we had a severance program of this size was seven years ago. It's not something that can happen every year. The transformation costs and integration costs are down 30% otherwise. Moving on to cash generation, which is obviously one of the strongest points in terms of the characteristics of Nets. You can see how we have a 42% increase in the excess cash, which is the cash we generate after having invested in our business and managed the business for growth we've spoken of earlier. This 42% comes off the growth in EBITDA. I would say a strong benefit in terms of managing our working capital, where we also had the benefit, and maybe some of you will remember we spoke of this when we discussed full year results last year. We had one customer, unfortunately, paid us actually, it was two, one large and one slightly smaller, who paid us midway through January rather than the year-end last year. This put pressure on our cash generation last year. Nothing much we could do about it, and we get the benefit of it in this half. So nothing particular there. I think it's part of ordinary business. But I would say that the very strong cash generation in the first half puts us in a good position to confirm our guidance for the year of at least EUR 700 million. On slide 17, you see the net debt position. Paolo has already highlighted how in the absence of M&A, notwithstanding the share buyback program, you can see how in the last year we have come down from 3.2 times leverage to 2.8 times leverage, which would actually have been 2.7 times leverage if we hadn't completed the buyback. In general, we are on a very steep, I'd say, deleveraging trajectory. For the first time, by the way, in a number of years, we also see gross financial debt coming down. As we reimburse the Nets notes, we will have more maturities coming in October 2024, where we will reimburse about EUR 500 million of bonds. And next year, we have another EUR 500 million. Just to reiterate, I mean, we have sufficient cash on balance sheet to meet all our liabilities through to 2026. The reason why we're not prepaying these is, as Paolo highlighted, the cost of debt is actually lower than what our cash balances yield us, and therefore there's no real sense in giving away the benefit of this carry. But we're 100% committed to reducing our gross leverage and our net leverage as EBITDA increases. That said, I would hand the floor back to Paolo for his final remarks. Thank you, Bernardo. Let me jump to page 19. This is the guidance that we've announced back in March for the full year, and we are just confirming it. Net revenue is growing, mid-single digit for the year. EBITDA mid to high single digit with the EBITDA margin expansion higher than 100 basis points. Excess cash generation more than EUR 700 million, and net leverage is decreasing to below 2.9 times EBITDA, including the announced M&A and the share buyback effect. As I said, we are already at 2.8 and actually 2.7 if you exclude the effect of the share buyback. Let me just recap on page 20, the key messages for the year, for the first half of the year. First of all, continue delivery of growth, margin expansion, and very, very strong cash generation acceleration. Number two, continue to shape next year for future profitable growth, working both on our growth engines and strengthening our position in the various markets, but at the same time, continuously working on efficiency and synergy extractions in the business. Last but not least, creating value for our shareholders. On the one side, continuing our leveraging process, but at the same time, accelerating our ability to give back capital and cash to our shareholders in this environment. This is, I think, a good example of how our future looks like. Let me stop there and open for your questions. Excuse me, this is the Nexi Call Conference Operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. To remove your question, please press star and two. Please pick up the receiver when asking questions. Once again, that's star and one for questions. The first question is from Justin Forsythe from UBS. Please go ahead. Hey, Paolo, Bernardo. Congrats on a nice quarter. Just a couple here for me. First, I wanted to hit excess cash. So should we think of the EUR 700 million reiteration as conservative, or are there some negatives that we should expect to flow through in the 2H that maybe weren't contemplated, such as that working capital benefit you saw that you just mentioned in early January? Or should we, again, view this as a degree of conservatism in your guidance? Second question is more of a strategic one. So you mentioned Computop again. It seems like you're phasing along nicely there with the integration. Can you talk a little bit about how that fits in with the broader portfolio of assets, particularly in Germany? So you've got now a modern point of sale platform. You're partnering with an e-commerce platform, and you've got the direct-to-merchant business with legacy Concardis. Are you well placed to create a nice little omnichannel solution there? And how do you think that will compete against the rest of the players as there's a bunch of other players seeming to push into Germany at the moment as well? Thank you. Hi, Justin. Good morning, and thank you for your questions. Let me start from the second one. I will hand over to Bernardo for the excess cash one. Listen, we always said that Germany for us, and DACH more broadly, is a key growth engine going forward. It's a big, big area of focus. And we've done a number of moves in Germany. I've highlighted actually Computop, but if you put everything together, we are investing into the most modern propositions we have. We are investing on SME partnerships. We bought a software leader being Orderbird. We are executing there our partner integration platform. And we have this growing and more and more integrated partnership with Computop that is a leader in e-commerce. And at the same time, we have launched the progressing the launch of the SME e-com proposition. So yes, the simple answer is yes. We want to basically, in Germany, create our strongest possible portfolio of propositions to be able to attack the market and grow in the market, again, with a strong focus that is SMEs, especially mid-size SMEs, and the more national, if you like, less complex, larger merchants. Let me just add one element. Computop for us is a very strategic partnership, not just for the German access to market and strengthening the proposition, but is a more broader, if you like, asset for the group because we plan to leverage their technology, their capabilities also in other geographies as we consolidate our platforms, in particular in e-commerce gateways for larger merchants and in omnichannel. So you're absolutely right, but it is a broader play for Germany and for Computop as well. Bernardo? Yeah, the question was on excess cash and how, as I said, I mean, we stand, I think, in a good position to deliver our guidance. We won't revise it upwards or anything. I think the working capital point I made is something which will stick. I mean, we will have a better second half compared to the first half with regards to working capital. And I think this is rather consistent with seasonality of working capital and the fact that you pay bonuses, and this worsens in the first half compared to the second. And in general, even though we're a growing business, a lot of work is going into trying to optimize this item, which is one of the levers we have to generate cash. But there's nothing that I would call out the second half. Justin, remember, obviously, we pay a lot of taxes in the second half compared to the first half. Of course, there's seasonality, which helps us offset this with higher EBITDA contribution in the second half to the first half. But there's no Visa share sales. I think in the past, there was some concern about that. I mean, we're going to hold them. We have them. We could sell them. We won't, even though we could, just to avoid there being any contributions. All right. Thank you both. Congrats again. Cheers. Thanks. Thanks. The next question is from Aleksandra Arsova from Equita. Please go ahead. Hi, good morning. Thank you for taking my questions. Three on my end. The first one is maybe just a trading update on how July is going on, also considering the new slow consumption in Europe slowing down. So what is the confidence you have? If the confidence you have in the guidance for the second part of the year is the same with respect to three months ago, then the second one is maybe an update on Sabadell. So if you have any update there and if you, for any reason, didn't succeed to close the deal, if this will imply, let's say, a hold, a stop in your penetration strategy in the Spanish area. And then just a technical one. Is Sabadell included in the, let's say, in the full year 2024 guidance on net debt on EBITDA, or it's excluded? So thank you. Aleksandra, good morning, and thanks for your question. So let me try to take the three of them. July volumes. Listen, July, I think in general, volumes are not the strongest ever, to be clear. I mean, you saw the macro around Europe, but at the same time, they're not bad either. What we see in July is actually not a bad trend, especially when we focus on international schemes, which is the area that is the most relevant in terms of what drives our revenues. We see high single-digit growth in places like Italy or DACH. If you like, the Nordics are a bit softer. I think, as I've commented in the past, the Nordics seems to be the geography where macro has been impacting quite a bit. In general, our expectations for the rest of the year, I mean, we're not taking risks. We're not betting for a recovery of the economy, but we're not planning a worsening either. Don't forget that in the second half of last year, that's when basically the economy became softer. And therefore, in the second half of this year, we may have a little bit softer comps compared to the first half. So let's see what happens, but this is all factored in our guidance confirmation. As far as Sabadell is concerned, first of all, we have received all the authorizations that would allow us to close. Clearly, we will not close up until there is clarity on what the situation will be with Sabadell in the future. Honestly, the relationship with them is fantastic, and we continue to prepare for a potential launch together. But it's quite clear that that situation will not be clarified anytime very soon. I mean, you are more experts than we are in following these situations, but we don't see this happening this year. This is the reason why there is no Sabadell contribution into our 2024 numbers, as much as there is not a Sabadell element in our cash deployment approach for the second half of the year. As you can imagine, one of the reasons why we are accelerating the buyback that was supposed to be over 18 months, and therefore, to simplify it out this year and now into next year, is also because we were expecting this year a cash out of €280 million, I think, for Sabadell. Now we have certainty it will not happen, and therefore, this is allowing us to anticipate to this year the completion of the buyback. And therefore, we just confirm our guidance for the debt leveraging. That's maybe actually an area where we may be doing even better despite the anticipation of the full buyback. Okay, great. Thank you. The next question is from Sandeep Deshpande from J.P. Morgan. Please go ahead. Yeah, hi. Thanks for letting me on. My question is, there has been some slowdown in the overall European markets, and do you expect to see any impact from that to your sales? And then when you look at your sales, it has been driven by the sales growth in merchant services is driven by expansion into different markets, etc. Can you talk a little bit about product, any new products that you're offering in merchant services that can expand sales going forward from here? Thank you. Good morning, Sandeep, and thank you for your questions. Listen, as I said before, yes, the European economy is not doing great. We don't see at this stage further deterioration, but it's all factored into our results and into the confirmation of the guidance that we have provided. There is one key element that I want to take the opportunity of your question to underline because it's really, really important, and then I'll come back to the propositions part of your question because the two elements are connected. I understand that there is a lot of focus on volumes because it's a simple KPI and so on and so forth. The good news is that our revenues are not driven by volumes only. They're driven by a number of other things. Let me just mention a few. First of all, mix of volumes. Our strategy is more focused on SME merchants, on national LKA, and much less on larger LKAs. And therefore, and actually, you see it into our volumes dynamics across segments, the more the volumes are concentrated into SMEs, the more the top line and margins benefit out of it. Point number one. And that's a key part of our strategy. Number two, mix of volumes. If you look at the area that is suffering the most, it's actually national schemes volumes. Well, actually, international scheme volumes continue to go pretty strong, double-digit in some cases. And this is very important because all in international schemes volumes are more profitable for us. By the way, also if you include what we are doing in issuing in our strategy in issuing. Number three, the more we grow e-commerce faster, e-commerce, especially if you stay focused on the mid-segment, e-commerce comes with higher margins. Number four, the more you focus on acceptance solutions, the more sophisticated acceptance solutions, the more you have a benefit. And last but not least, don't forget that we do what we call value management every single day of the year. And therefore, we take the opportunity to reprice customers that are unprofitable or that are too low on profitability, as well as we accept to leave customers that are maybe very large customers that, if you really look at it well, are all in unprofitable. So all these elements are contributing to the resilience of our merchant services growth despite macro being unstable in this phase. Coming to your proposition question, that's the reason why we're so focused on driving more propositions across the board. We are launching smart terminals across all geographies. We have them since a long time ago in Italy, in Southern Europe, in Germany, in DACH, more broadly. Now we're launching in the Nordics as well. Number two, e-commerce. We just discussed what we are doing in Germany. In general, there's a strong focus on e-commerce and in exporting and extending our most successful propositions that are full acceptance propositions, including also alternative payment methods across the board. Number three, we are extending the number of payment methods that we accept from account-to-account payment methods like Bancomat Pay with Amazon in Italy to buy now, pay later account-to-account payment methods like, for example, Klarna in the Nordics. And with most of these, we don't do only acquiring. We also try to do collecting, which again increases value. We launched SoftPOS, and especially in Italy, we see good traction. Again, SoftPOS is not a very big thing, but it's an additional value-added service that we can provide to our customers. Let me close with one last example. We are pushing on value-added services across the group, from the simplest ones like DCC, which is doing very nicely, to things that are a bit more sophisticated that fit very well with our positioning and with the phase of the economy, like merchant financing, where we work with partners, but we are able to retain a pretty high margin. And just to give you a sense of it, when we're able to basically sell to a customer, also merchant financing, the value of that customer can almost double, not to talk about upselling software and other things. So there's a number of things that are contributing to merchant services revenues, not just volumes. Those are the core, core, core of our strategy because this creates a little bit more independence from the dynamics of macro. Thank you so much. The next question is from Orson Rout from Barclays. Please go ahead. Hi, yes, Orson Rout here from Barclays. Thanks for taking my questions. Two from my side. First is just on the EUR 15 million loss after tax from asset held for sale. Can you speak to what caused this deterioration, and is this primarily from Ratepay? And as a quick follow-up, can you give some progress on sort of the situation with Ratepay? Because you gave a bit of sort of color on the other disposals, but nothing on Ratepay yet. So interested to hear how that's going along. That's the first question. And then the second is just on the cash flow. Obviously, congratulations for the strong half year on excess cash generation. I was just wondering in terms of the severance costs, how we should think of these from a phasing perspective. Obviously, only EUR 31 million in H1, but how should we think about these costs from a cash flow perspective over the next couple of half years? Thank you. Good morning, Orson, and thanks for your questions. I hand over to Bernardo for both. Yeah, as you say, that item is primarily Ratepay. Ratepay is being managed. We've discussed Ratepay in the past. We were looking to sell it. As such, we have basically collapsed Ratepay performance and eID performance as assets available for sale, and we hold them, and we basically book them at net income, which is what you're commenting on, the net income effect of Ratepay, essentially. And that is, in this year, was it impacted by a significant restructuring charge we took in, I think it was March, February, March this year when we basically downsized the workforce to manage, as I've said in the past, the business in such a way that it burns as little cash as possible. We're talking about a business which probably will burn between EUR 1 million and EUR 1.5 million per month going forward, and we expect to return to break even during the end of next year. So that's what you see this year. In the first half, you see the cost of letting people go and Ratepay. With regards to cash flow, I think the, sorry, the cash flow question related to severance. So we have a very high degree of confidence with regards to the overall cost of the program, which will be round about EUR 150 million, which is what we guided to back in March when we commented on full year results and gave guidance for the year. That EUR 150 million will be on the cash front. It's a little harder to be as precise, but it's going to be more or less half of that this year, of which you saw more or less half of that, half, so a quarter in the first half of this year. So I would expect to close the year with about EUR 70 million-EUR 75 million of cash related to this item in the course of 2024. The other half will be primarily next year and the tail in 2026. Helpful. Thank you. You're welcome. The next question is from Sebastien Sztabowicz of Kepler Cheuvreux. Please go ahead. Yeah, thanks for taking my question. I've got one on the CapEx. Where were you in terms of ordinary transformation CapEx in H1, and how should we model the CapEx moving into the second part of the year or for the full year 2024? And attached to that, when do you believe you can achieve your long-term CapEx ambition that is 7%-9% of net revenue? And the second question is on the net take rates, which increased quite nicely in H1, around 2% year-over-year for both Merchant Solutions and Issuing Solutions. What were the main drivers behind the take rate evolution in H1, and what do you expect for the coming quarters? Thank you. Good morning, Sebastien, and thanks for your questions. I'll let Bernardo take the first one around CapEx and CapEx dynamics. Let me comment on the second one because it connects well with what I said before, I think, answering to Sandeep's question around proposition and what else we do. Because that's actually the driver. As you see from the numbers, our take rates are broadly stable, if not in some regions also improving. That's really the combination of some normal pressure that you have everywhere on pricing, which is, as I always said, structural in a business that is growing and when there is over time more competition coming in. But at the same time, this is well rebalanced, if not more than rebalanced, by the number of things that I mentioned before, from value management and repricing wherever appropriate, to more valuable proposition, to new products and services that we launch into market, to a volume mix that is moving more and more into SMEs and into international schemes and more valuable products. So that's really what is helping us to support take rates more broadly, despite the fact that we have to remain competitive. And therefore, when you look at the traditional services front book pricing, we stay competitive in the market. So it's this balance on the one side we want to stay competitive, on the other side we want to create value across the board by driving our strategy in terms of portfolio, business mix, and new propositions. Bernardo? Yeah, on CapEx transformation, I think what we're trying to do is simplify also our reporting and reduce the number of variables we put out there just to hopefully make your life simpler and be judged ultimately on a smaller set of KPIs. The transformation CapEx, last year we had about 100 at the beginning of last year, so at the beginning of 2023, we had about EUR 130 million left, and we booked, if I remember correctly, about EUR 110 million. So we had about EUR 20 million during the course of this year, and we've spent most of the truth is we spent most of that EUR 20 million already in the first half. However, I think it makes sense to start looking three years into the merger with Nets and SIA. It doesn't make a huge amount of sense to continue distinguishing between transformation and ordinary CapEx. I think we're at the stage where most of this should be treated as ordinary. At least we are doing so internally, and therefore we have exhausted that bucket of CapEx, and you should look at our CapEx intensities being ordinary CapEx, which currently is 12% of revenues. Remember also in our CapEx, it's always worth remembering that we have at any point in time between 2%-4% of revenues, which is spent on terminals, which are very directly linked to our revenue generation. So transformation CapEx, by the way, we said was going to be exhausted by 2024. We're just bringing that forward by six months in terms of our report. When will we reach 7%-9%? Clearly, that guidance was given when we were hoping revenues were going to grow faster than we had the effect of macro, the slower top line growth that you've seen, and that impacts it more so than the pace of reduction of absolute CapEx. As you can, I mentioned earlier, we expect this year to be approximately EUR 50 million down compared to last year, and we expect this continued reduction in absolute terms. Now, when it will reach 7%-9% depends on what we'll tell you about next year's revenue growth in the following years. So I think we'll have that discussion later on. But you should think of our CapEx as coming down in absolute terms year on year. Yeah, and let me add that. Let me add, Sebastien, that all of this is already embedded into the longer-term guidance that we've given on cash generation of about EUR 1 billion in 2026. Okay, that's great. Thank you. The next question is from Hannes Leitner from Jefferies. Please go ahead. Yes, thanks for letting me on. I got just two questions. One is a little bit of a follow-up on the volume question from Sandeep. Italy only grew 2% in Q2, Italian merchant service volumes. And then can you put that just in context of the deceleration trend and then squaring that with total Italy growth of 6% in the quarter? So should we think going forward that merchant services remains under pressure there? And then the second question is just like maybe on the cost composition, what is the headcount expectation for the year? And also, yeah, so more just on the headcount evolution. Thank you. Good morning, Hannes. So thank you for your questions. On the first one, the dynamic that we see, I think I mentioned it also before, it's not just Italy, it's across the board, is pressure on national schemes, which is exactly what is happening in Italy. And that's the reason why you observe that dynamic. At the same time, don't forget that in Italy, international schemes sales volumes are actually growing double digits. So you should look at it in the overall context. And this is actually one of the reasons, together with the other ones that I mentioned before, that is allowing us in any case to have sustained performance on merchant solutions across the group, but in Italy as well. On headcount cost, we expect these actually to slow down, actually come down quite materially going forward whenever given precise data around number of people and stuff like that. And honestly, we prefer not to continue to give it because, to be honest with you, we are happy to have people in the company that are competent and do well for our customers. We always look at it as an overall cost component, and we don't give ourselves objectives in terms of reducing number of people. In general, we give ourselves objectives in terms of reducing the overall cost to do what we are doing and to grow the revenues as we are growing them. And in some cases, we rationalize and reduce where we see opportunities. In other cases, we also insource activities as we are doing right now, and we continue to hire people. That's the reason why we don't plan precisely against the numbers, but we definitely plan in terms of total OPEX containment and reduction. The next question is from Alexandre Faure from BNP Paribas. Please go ahead. Good morning. Thanks very much for letting me on. I've got three questions, if I may. First one, maybe double-clicking a little bit into these international schemes compared to domestic schemes. Could you remind us of the sort of net revenue content of international versus domestic, and why there's a difference there? And a bit surprised because I think in the second half of 2020, when basically domestic volumes recovered faster than international, you commented that this was having a positive impact on your net revenue line. So I might be misremembering, but maybe there's been any changes in the way you price for international schemes. My second question, still on that shift to international, you commented that this is something you're seeing quite markedly in Italy. I was wondering if you're seeing a similar shift and to the same magnitude in Germany, Denmark, and Norway, and how you expect that mix to evolve over time in all those countries. And finally, sorry, my last question would be on Spain. You got the question earlier. Just to be crystal clear, if Sabadell was to not happen, would you be pursuing other M&A opportunities in Spain? Thank you. Good morning, Alex, and thanks for your question. So on international schemes versus national schemes, let me be clear because I really want to make sure we don't confuse you. In the volumes that you see reported by us, we have always a combination in the total volumes that you see there of the volumes where we are acquirers, but also the volumes where we are just processors. And when I say that the economics are similar, I'm really considering the acquiring volume. So if a customer pays on a merchant that does everything with Nexi, either with international schemes or national schemes, in most of the cases, we make more or less the same amount of money in terms of net merchant fees. Then it depends on the market, depends on the situation, depends on the customer, but that's more or less the basic rule. The key point is that instead, we process basically all or almost all the country volumes for national schemes in Italy, in Denmark, and in Norway. Those are volumes that instead come with very low margins. Those are the processing volumes. Therefore, when you look at the overall volume mix, not the revenue mix, that's the reason why if in the volume mix, the national schemes don't perform well, the overall impact on us is completely different from the impact that we are having on international schemes. That's point number one. Point number two, the dynamic that we observe on national schemes, I would say applies a little bit everywhere. As you know, international schemes are investing a lot to promote their cards into banks. That's basically a key part of their business model. Therefore, you have banks that are more and more issuing international schemes-only products. On top of it, in many cases, international schemes are not, sorry, national schemes are not active on wallets, Apple Wallet, Google Wallet, and so on and so forth. And last but not least, in some cases, national schemes are not usable online. That's, for example, the case of Bancomat. And therefore, the more you see wallet growing and you see e-commerce growing, that for us are all positives, you see national schemes penalized. As we speak, there are a number of initiatives by banks, actually, to improve the ability of the national schemes to be used online and to be used in wallets. We are actually working on a number of projects in this direction, but the effect of these is not seen yet. That's basically the dynamic that we see. As far as Spain is concerned, listen, we stay committed to our partnership with Sabadell until the situation is clarified. What brought us to consider the deal and to sign the deal with Sabadell was starting from the fact that we like the Spanish market, and we saw Sabadell as a fantastic partner in that market. If for the reasons that you can imagine, Sabadell doesn't go through, we'll probably continue to like the Spanish market. However, I want to be clear, this does not mean that we will do, we are ready to do anything to come into that market. We remain extremely rational. We don't know what other opportunities may arise, and we will consider them, and we may be doing something only in case that there is something that is valuable, that is coming at the right conditions, and that we consider being good quality, as well as we've done with Sabadell. So that's the way I would summarize the situation. That all makes sense. Thank you. Thank you. The next question is from Aditya Buddhavarapu of Bank of America. Please go ahead. Hey, Paolo Bertoluzzo. Thanks for taking my questions. Just two for me. On Digital Banking Solutions, you talked about the focus on disposal of non-core assets. You did say you're not in a rush, but could you maybe just talk about the assets which you could look to dispose of and what your thoughts are there and if there's any processes going on right now? Second, just within the revenue mix, the rest of Europe actually was quite strong, up 10.6% in Q2. So could you maybe just expand on what's driving the growth there? Maybe it's Greece or other markets. Morning, Aditya. Thank you for your questions. Listen, on DBS, as you can imagine, we prefer not to give details on situations that are ongoing and so on and so forth. But let me just make two comments. Number one, the reason why sometimes these things take a bit longer is because these businesses, and you know that DBS is a portfolio of different businesses. Some of them are quite strategic for us and important. Some of them are less strategic, and those are the ones that we consider for potential sale. And a part of the challenge in terms of how rapidly you can move on this is the fact that they're not necessarily self-contained businesses, fully vertically integrated, and so on and so forth. Therefore, you have time needed and effort needed to basically carve them out, at least virtually, and define them and prepare them for potential M&A processes. That said, we have a number of conversations. Let me call them conversations and not processes because depending on the situation, we take different approaches, and we will keep you updated if and when these become real. As far as the Central and Southern and Eastern Europe is concerned, we're actually seeing good performance in, I would say, a number of countries. This time, I'd like to highlight Greece, where we did do particularly well, where volumes are doing well, but most importantly, also in terms of value management. We did suffer a little bit last year because there was a quite material mix shift of volumes, and our pricing was not able to reflect it completely. We have adjusted that at the end of last year. Now we're benefiting from that, but it's not the only case. So we're quite satisfied for the performance that we see there. Plus, we're trying to expand into countries with, I would say, asset-light models in merchant solutions as well. Plus, we are also investing in that region more on DCC type of services that, again, are asset-light. So we are trying to be as smart as possible in a region that is very articulated and where each one of the countries is not of very big size, but presents very nice opportunities. Understood. Thank you, Paolo. Thank you. The next question is a follow-up from Aleksandra Arsova from Equita. Please go ahead. Hi. Thank you for taking again my questions for a couple of ones. The first one is on the dividend/buyback program in the coming years. So this year in 2024, the EUR 500 million buyback, considering the EUR 700 million plus of cash, it's almost 70%, let's say, payout. Would it be reasonable to consider such a payout also in the coming years? Or maybe can you guide us for, let's say, a sort of policy on dividend and/or buyback? And the second one, maybe a little bit of color, since I'm trying to assess a sort of sensitivity of free cash flow and EBITDA on revenues. So if there is an actual slowdown in consumptions and in revenues for you, I'm trying to understand if you have any levers to activate on the cost side or on CapEx to achieve in any way the excess cash guidance and the EBITDA guidance. Thank you. Hi, Alexandre. Thanks for your new questions. Listen, on dividend, share buyback, and so on and so forth, as I said before, we took a structural decision on the fact that given our ability to generate more and more excess cash, we will at the same time reduce leverage but also return structurally capital to shareholders. What is the mix and what is also the way we're going to be doing it in between buybacks and dividends is something that we will discuss very probably when we will communicate next year's guidance in, I think, late February or early March, I don't remember when the call is planned. So let's talk about it there, but the direction of travel is very clear. I think on free cash flow sensitivities, let me say something that I think is quite simple. As a company, as a management team, we always take action to protect the profitability of the business and cash generation of the business, trying to manage unexpected external factors such as, for example, macro shifts and so on and so forth. So the simple answer is that we will be taking action in any case, obviously always protecting the future potential growth of the business. But again, just as a reminder of our focus on protecting the profitability of the business and cash generation, I just want to remind everybody that in the year of COVID, where we were an Italy-only company and Italy was by far the country in the world that was the most affected by COVID. And when volumes went down 50% for a few months, not for a few days, nevertheless, we grew EBITDA in the year by 3%, I believe. We did grow EBITDA minus CapEx minus non-recurring double-digit, I think. It's a very strong focus that we have. Whatever the market condition do for us, we manage the business accordingly. Again, also protecting future growth that remains our very strong focus because we remain very optimistic about the long-term growth of this business and even more the long-term cash generation potential of our business, more precisely. Okay. Very clear. Thank you. Thank you. Management, there are no more questions registered at this time. Do you have any closing remarks? Oh, listen, thank you all for attending. I will not reiterate the messages because I think I've been hopefully quite clear. I know that many of you, actually many of us, are ready to jump on holiday or maybe already on holiday, but we are always ready for questions, deep dives, conversations. If not now, as soon as you are back from holidays, I'm very happy to continue the conversation. Please, please, please come back to us with any questions or doubts or comments or also suggestions. Thank you so much and enjoy your holidays. Bye-bye.