Morning, this is the Chorus Call conference operator. Welcome, and thank you for joining the Esprinet First Half 2026 Results Conference Call. As a reminder, all participants are in listen-only mode, and after the presentation, there will be an opportunity to ask questions. At this time, I would like to turn the conference over to Ms. Giulia Perfetti, IR Manager and Sustainability Manager. Please go ahead, madam. Thank you, madam. Good morning, everyone, from me, too, and thank you for joining us for the Esprinet Group H1 2026 Results Presentation. I am Giulia Perfetti, Investor Relations and Sustainability Manager of Esprinet, and with me here is Giovanni Testa, CEO of the Group, who today will comment on the results. Before we start, please note that this presentation contains forward-looking statements, so I would like to draw your attention to the regulation note on page two regarding information contained within this document. Today's call is being recorded, and the podcast will be posted on the Esprinet website in the Investors section, together with the presentation. I will now turn the call over to Giovanni to begin presenting and commenting with you on the H1 2026 results. Giovanni, over to you. Thank you, Giulia. Welcome also from me, and I think that we can start with the H1 2026 result of Esprinet. The overall picture of the first half of 2026 confirms our strategy. The solid results reinforce the momentum that we built from the start of the year. The second quarter, I have mentioned the strong performance of the first, and this allows us, and this is the first news that I would like to underline with you, with a solid outlook for the second half and let us to raise our 2026 guidance to adjusted EBITDA of between EUR 77 million and EUR 82 million. The maximum of the previous guidance that we announced in May now is the minimum of the guidance for the minimum of the fork. Passing on the sales side, gross sales grew over 80% year-on-year, exceeding EUR 2 billion in the half. Also in the second quarter, the Iberian Peninsula remained our engine. It is the market that is more growing in the region in which we are well present, and once again, delivering a double-digit growth. On the contrary, in Italy, the market is growing, but low- single digit, and the trend of the market in the second quarter in Italy is more or less the same as the first quarter. So we are in a market that we started to grow, but not as we would like to see, and what we not like is we are seeing in Peninsula Iberica space. Demand is driven primarily by the infrastructure, artificial intelligence, memory, and storage, and this is a trend that started in the last month of last year and is continuing also today. We see a little shortage of components, but we see also a very important increase of the unit average selling price. Overall speaking about smartphone, notebook, tablet, and servers. The first three product categories are related to the Esprinet space and server are related of the businesses that we manage under our brand, V-Valley. In PCs, overall, what we have to underline is that the decline in unit shipment was more than offset by rising average price. But for sure, we see a number of units sold that is less, is important number with respect to what is the business of PC notebook in this moment. Green Tech sustained the remarkable growth that we had in the first quarter. What is the main aspect for us is that our strategy to grow, to push a lot in these product categories and in renewable energy is a win strategy in this moment. Passing to turn to profitability, and about the financial structure. The EBITDA adjust for the first six months of the year was at EUR 31.9 million, with an increase of 27% compared with the same period of 2025. Also the incidence of the sales rising to 1.53% from 1.30%. This result is supported also by a gross profit margin of 5.79%, and also from our capability to keep all the fixed and variable costs under control. This is another aspect that is important in our strategy because we are trying to grow in sales and in gross margin, gross profit, keeping under control the cost, reducing the impact of the overall fixed cost on the turnover. The cash conversion cycles is closed at 25 days. One day better than the first quarter and four days better than Q2 2025. The net financial position is EUR -325 million and is flat if you see the compare period of June 2025, and is better or more or less EUR 25 million-EUR 30 million over March 2026. ROCE stood at 6.3%. So at the end of the day, what we can see is that we are growing sales, and we are growing overall EBITDA margin. That, for sure is the most important aspect. We have maintained a solid financial structure. So all is the reason why we decided to increase the guidance, EUR 77 million- EUR 82 million. If now we look, thanks, Giulia, to the H1 and Q2 2026 sales evolution, the messages are more or less the same that we discussed and we shared in the first quarter. We have outperformed the market, in all the regions of Europe in which we are present. Overall, in the Peninsula Iberica, that is the country that is leading the way. Spain grew 18% in the second quarter and 21% in the half. The market grew less, as you can see in the picture. So we beat the market. Portugal is continuing, increasing its market share, and we are doing more than the market, up to 62% in the quarter and 37% in the half. For Morocco, we didn't have data of the market, but what we can say is that it's still small in absolute term on the total of our turnover, but increase of 20% the sales year- on- year. Italy rebounded in the second quarter with the gross sales up to 8% and in the H1 we are increasing exactly the same percentage of the market. The group grew 4% broadly in line with the market over the half. Passing to the product categories, the double-digit market growth in the quarter was driven by the performance of the infrastructures sales, and also a strong performer of the personal system, what we see in the product category screens. Solution and services grew over 15% in the quarter and 13% in the half. The screen of 4% and 9%, respectively. Device, that is a product category that last year was in crisis, in this year, are growing over 8% in the second quarter and 4% in the half one 2026, ahead of a market that was down in both the period. We close speaking about product categories with the Green Tech, that remain our fastest growing area, with up to more or less 40% in the quarter and 40% in the half. That confirm our strategy, that confirm our capacity to grow, all in the month of the year, is not a spike in one moment, and then with a result not in line in other month. And confirm also our strategic role on renewable energy and energy efficiency technologies. For sure, in the Green Tech, there is the part of the result of Vamat, our last acquisition in October 2025. Passing to customer, IT reseller were the main engine of our cluster of customer and are growing 8% in the quarter and 13% in H1. Retailers were down 9% in the quarter. Here we want to really maybe answer to some question that could arrive later, we decide not to take some business that under the profitability or/and working capital point of view, were not in our vision, good to take. We want to create value not to destroy the value, and we are not following the turnover, just to have a better figure in the top line if the result is not reflected in the EBITDA margin. We decide not to take some business in the retailer and retailers space. Passing to the next one. Here we see the profit and loss of H1 FY 2026, by the three dimension that represent our go-to market, screens and devices for the Esprinet, solutions service for V-Valley, and Green Tech for Zeliatech. As you can see, all the figures are positive. Some comments we have already done a few minutes ago. What I have the pleasure to underline is the performance of the services. If you remember in Q1, we had a services figures that decrease of more or less EUR 500,000 for a spot deal that we had in the previous year and not in 2026. But you can see the performance of the services in Q2. So after the announcement of our new division, Innovexya, that we announced at the end of March 2026. We are very focalized on services. We are pushing a lot, and in Q2, we increased over 41% of the turnover and 56% in EBITDA margin. It's clear that our small numbers of turnover in our global turnover, but with a EBITDA margin of more than 50%, also a small increase of turnover represent a good impact in our total EBITDA margin. Other aspect that we are the pleasure to underline, as we have told before, the Green Tech, with increase of 40% of the turnover and 57% of the EBITDA margin. With the EBITDA margin that get a grew of more than 20 basis points. Other aspect that we want to underline is the increase of the turnover of the screens, which for sure there is the impact of the increase of the average selling price of a notebook and a smartphone, but also the good performance, respect the previous year, of the devices. If you see the H1 result of the EBITDA margin, EUR 3.1 million against EUR 0.3 million with a delta of EUR 2.8 million, more than 100% of the increase. Also in this product categories, as we have said in the last investor call, we have changed the profile of our business. We have decided not to go on in some categories of each product, and we are pushing a lot on the market, in which we can see EBITDA margin higher than in the past. In the profit and loss summary, we see the good momentum of the EBITA adjusted and the EBIT adjusted for turnover and for gross profit, we have already commented what happened. We see about the SG&A cost that are growing of 4% in H1 and 7% in Q2. The main reason are all related to personal cost, because I remember you that in the perimeter of the group was not present in Q1 and Q2, Vamat, for example. There are also the two renewals of the collective bargains agreement that there is both in Italy and Spain, with a percentage that are important. For the other costs are under control, are in line with our expectation, and also with the 2025 result. The percentage of the incidence of SG&A on the turnover, H1 2026 decrease from H1 2025 from 4.44%- 4.26%. About EBITDA and EBIT, what I have to underline in Q2 is that for the first time, there is a difference between EBITDA and EBIT adjusted, but also at the level EBIT adjusted, because in Q2 I included some non-recurring costs that are related to the termination of the relationship with our former CEO, Alessandro Cattani, and three managers of the group, one in Italy, one in Spain and one in Portugal that left the company during the Q2 2026. About the financial aspects also, the cost of the net financial expenses, the impact as we have already seen in Q1 of the not favorable dynamic of the euro/dollar exchange. On the contrary, the other financial costs are in line with the last year. We are speaking about EUR 6.2 million in H1 2026 against EUR 6 million in H1 2025. At the end of the day, we know the net income increased over 40% in the half, and you see the decrease of the income in Q2, but it's all related to the not recurring cost that I have explained a few minutes ago. Speaking about the balance sheet summary, there are two aspects that are the main focus of the group since a lot of quarters. The first one that you can see in the right side of the slide is related to the operating net working capital. You can see that the total operating net working capital is in line with the result at the end of June, is in line with the result of 2025, because we are speaking about EUR 428 million against EUR 417 million. You see an increase of the inventory, and also an increase related of the trade receivables that is connected to some deal that we have decided to do, because connected to the continuing increase of the prices, we have decided to have the product already in our warehouse for the H2, for the back to school in August, and also the campaign September to December that I remind you that are the four months in which we have to create the majority part of our EBITDA margin of the year. We have decided to prevent the increase of the products to have some products available with the better price maybe of the competition or of our competitor for our customer, we have decided to anticipate some deals. Speaking about the net financial debt that you can see in the left part of the slide. Even if we have done this deal, and we have anticipate some purchasing deals with the vendors, the net financial debt is fully stable because we are speaking about EUR 325 million of debt in 2026 against EUR 328 million in 2025. That is also connected, what I like to agree of more than 8% of the turnover. In this moment, we are confident that also our hard work, speaking about the inventory management, is offering us a good result and a good demonstration that our strategy is, in this moment, a win strategy. Here we see the working capital metrics for the average of four quarter. More or less, the figure that we see in this slide are the same of the next one. Seeing the average of first quarter, we are passing from 29 of Q2, again of Q2 2025. We are increasing the result. We have a better result of four days and of one day respect the Q1 2026. If we see in the next slide, if we see the year quarter metric, also here we see four days of better result for the Q2, so June 2025, June 2026. And a decrease of three days, so more than the one day of the average of the last quarter, from Q1 2026 to Q2 2026. ROCE is stable 6.3%, fully in line with the result or a little increase with respect to the result of Q1 2026 and a little decrease of Q2 2025 that was 6.6%. Final remarks. The geopolitical scenario is changing every day as you can read the newspaper and the websites. Every day we have a news that could be a good news or a bad news, and the two, in the bracket, big wars, big crisis, we are speaking about Iran and Ukraine war, every day offer us a different scenario that can change the visibility over the next month. For sure, all these aspects are creating issues on supply chains, the cost pressure, the price pressure, and the price increase of the products. The cost pressure overall related to transport, to energy aspect. You see perfectly the increase of the cost of the oil. It's an issue that can have some aspects that are related to the control of the fixed cost and the variable one, overall, in this case, the variable one of the company. There are also some issues about the project timelines because some companies. We are speaking about private company, are looking for starting the new projects, and they want to see which will be the future. We still have, as in the Q1, some problems related to the public tender. We are speaking about Consip tender and so on because even if the vendors are trying to enlarge the time in which they can grant the price to concept, there still is an issue because in the past, we were in a market in which the prices decreases, the crisis and the visibility for the tender with the public administration was three years for the price. Now it's not possible to have the same situation. The ICT distribution market is growing. It's growing with the different percentages country- by- country, but all in all, is growing. It was driven mainly by the, as we have already said, the demand for infrastructure and artificial intelligence, software, cloud, cybersecurity, and for sure, for the PC segment that, as we have already said, see lower units volume offset by the average price that is increasing more. We can confirm at the moment that our strong performance of H1 is a demonstration that we think the good strategy that we started some years ago with the three division, especially V-Valley and Zeliatech, with the decision to enter in a renewal energies, with the decision to have a push more than the past on services and data center solution is in this moment because we can comment the result since today, but also in our forecast, the reason why we increased our guidance. We are positive, and we think that we can have a long-term growth also in the next quarters because our market, and our strategy as well, will permit us to grow. If the guidance, we decided to create the guidance, the new go one is a bit adjusted of between EUR 77 million- EUR 82 million. We will work as in the past to arrive in the high part of the fork as we have done last year. I think that I have finished from my side and Giulia for the team for the Q&A session. Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press star and two. First question is from Pietro Nargi, Intermonte. Hello. Good morning. Thanks for taking my questions. Two questions on my side. The first one is on the device segment. As you already said before, there was an improvement in both revenue and profitability. I was wondering if this trend could be, let's say, sustainable also in the second part of the year. The second question is on the V-Valley. We have seen, again, a solid growth on this segment. If you could provide us more color on your, let's say, expectation for the midterm. If, let's say, the high- single digit target year- on- year, it's a sustainable trajectory for the next few years? Thank you. Results of Q1 will be possible to reach also in H1, will be possible to reach also in H2, and also in the next year. The result is related, as I have mentioned before, to a decision not to manage anymore some categories that enter in devices. Also, there is an aspect that I am happy to comment with you that today our own brands performed better than in the past, and own brands in our division, the turnover, entered in device segment. So the answer is yes, we see more or less the same trend also for H2, and we are forecasting also for the next year. About V-Valley. V-Valley is one of the main pillar that is present in our strategy. Also in the V-Valley space, there are a lot of product categories that altogether created the result of V-Valley. Some product categories are growing a lot, and also in the future are, from our point of view, the trend setter of the market. We are speaking about overall software and cloud that are mixed, because there's no difference between box and cloud in this model, so on-premise, on cloud. Overall cybersecurity. There is also an apport of artificial intelligence agents that is starting, is not showing 100% in the results of H1, but is starting. We have signed some contracts with vendors of agents, as I told you in a lot of interviews, told you to the financial community, in a lot of interviews in the last month about artificial intelligence and about the agent, we are developing some agents internally and also we are signing some contract with the vendors to distribute agents that are done by other companies. What is the common point for the two strategies is that we are testing the agents internally before to put in the market to offer to our customer, because we want to be sure that are working well, because artificial intelligence is a space in which a lot of people are speaking, and we are not sure that all are knowing perfectly what they are saying. We can say in this way, because I wanted to be polite. We wanted to test, to be sure to offer to our customer agents that are working in the right way. Speaking again about V-Valley, there is also another aspect that are important for us, is the market that is related to server. Also connected to the artificial intelligence, the needs and the performance of the servers necessary to manage the AI, artificial intelligence, are growing a lot. We have to offer to the market servers with the capability, with the power, much higher in a very important percentage of increase of the power of the servers. There is a market in which we will see in the future some needs of change of the infrastructure that are present now in the data center. It is another opportunity for us. I hope to have well answered you. If you need some other comments, please tell me. Yes. Thank you. Very helpful. Bye. Next question is from Mathias Paladino, TP ICAP. Yes. Can you hear me? Yes. Okay. Thank you. I have a question maybe related to one on the working capital. The cash conversion cycle improved to 25 days, but will remain above your 21 day, if I remember well, ambition while factoring and securitization programs increased to EUR 402 million. What concrete progress can be made on working capital in H2, and should investors expect that higher EBITDA guidance to translate into stronger cash generation this year? Maybe the second question is on V-Valley, on the margin. If we compare it to the last year, we were at 4.75%, and now we are at 4.35%. What drove this small, let's say, dilution, and should we view it as a temporary mix effect or as maybe the appropriate margin level for the current growth environment? Thank you very much for the answer and the presentation. Okay. Let me start from the second one, about the EBITDA margin of V-Valley. In the reality, the gross margin, the gross profit of this division is growing. The reason why you see a decrease on the EBITDA margin is related to the fact that we are inserting in our structure, in our organization, some profiles that in the past we didn't have, and other profiling that, in our vision, can support and apport a lot in the future. This is why we are speaking about personal cost that make the EBITDA margin with a little decrease. But we are quite confident that there is a good opportunity to improve in the future. Now, another part of the EBITDA margin rules by the personal cost is related to the new sales structure of Innovexya. As we mentioned, the big difference in the managing of services in the group respect to what we have done in the past is that we're trying to sell services and solution related to the services, not only with the general sales structure of each company, especially V-Valley and Zeliatech, but we have created a specific sales division, sales group, that help our customer to go together to the end user to explain the services and the solution. We are speaking about overall cybersecurity and artificial intelligence solution. Obviously this group have a cost that in this moment have a incidence more than the growing that we are seeing in turnover services. But as we saw in the figures before of Q2, already there is a good result of 40% of the increase of the turnover in Q2. It is not only related to the new sales group, but is also related to the used group. Speaking about the working capital, for sure we see little slides improve the working capital. There is a seasonality that this year is changed in respect to the previous years and the needs of vendors and customers, as I commented before, created a new need to anticipate some purchasing deals. This is why we have produced a better result of some days, as you told us. We are not so far, but we have not already reached our target that is, as you right mentioned, 21 days that in our calculation will permit us to be cash neutral. The main focus to arrive to that target will be to reduce another time the level of stock. We are confident to do that overall in Q4. Also in Q3, you will see some opportunities for us, we can define the bracket in this way, but overall in Q4. That is the moment in which there is the big worries about the possible shortage of smartphone and PC notebook. There was also an aspect of securitization and factoring. We are trying not to do a lot more securitization, but to sell more invoices to factoring, because we are also trying to have the double advantages, not only on the net financial position, but also because we are always in non- recurring programs. We are matching also the aspect of the credit insurance aspect, because it is true that in this moment, there are some possible issue about credit with very small specific clusters. I do not want to mention now, but there are one, two cluster, very small as number of customers, but very important in some specific market. I am speaking about smartphone, one, that are some issues, probably you have already read something in the newspaper and website. Very clear. Thank you very much. Next question is from Gabriele Berti, Intesa Sanpaolo. Morning, everyone. First of all, congrats for the result and thanks for the presentation. First one is on Spain, which is still very strong. How sustainable do you see this growth pace, and can you provide some color on how much of the performance was linked to public incentives, in comparison to the underlying private sector demand? You mentioned memory shortages and higher component prices as relevant market factors. Could these dynamics become a potential headwind for demand or working capital management in the coming quarters, although they are currently supporting current selling prices? Very lastly, if you can provide an update on the execution of the Innovexya project. Okay. The first question is about the, for example, for Spain, the Kit Digital, and so all the funds for the PNRR programs in Italy, Spain, and Portugal. Also here, there are two different speed in the countries. In Italy, the impact of the funds is not so important from our point of view, in our vision, because a lot of funds are already not yet spent and not yet used because sometimes our own customers, our end user, are not knowing perfectly how can do that. There is probably some also problem of communication when we have spoken with our customer, we have the feeling that not all is clear, not all the opportunities that this aspect can offer to the market are catching 100%. On the contrary, in Spain, I have to say is that the contrary. In Spain, all the funds were used and were well used for permit to the end user to start new projects in some different markets. We see that in the new energy and also the project that are connected to the data center, as I told you before, related overall to the change of the servers, in order to manage better the agents, were well used, and we think that can support the business till the next two, three quarters as well. Then we will see what will be the decision of the governments and of Europe for sure. The second one was the shortage of the memories and the impact on the prices. In this case we have to divide the impact in two main group. The first one is, we are sure because we are seeing also the projection with vendors and so on, that the unit price of a notebook and smartphone will increase, I think till September, the end of Q3 of 2027, because also the possibility to create new factories for chips need more than one year, and in China, and not only in China, in the Far East, started to build the new factories. A lot of vendors did that, but there is a time needed of one year to be sure that the product is in line with the expectation and to arrive to the market with more product available. About the price, we will see an increase of the price for sure. About the unit sold, in the future, there is also here the need to divide public and private market and end user market. Private and public market, so we are speaking about public administration, central or local is no difference, and the private companies will continue to buy because they need to have a notebook that can perform with the new tool, with also the ChatGPT, Claude, Anthropic and so on. Because if you want to have a good performance, you need to have a notable performance that can perform with a microprocessor, RAM, and so on, better than what they have in this moment in the companies. I want to remind you, and we have to remember well, that the last big change of the devices was during and after COVID. Then there was another wave related to the change of Windows 11, but was lower than, expect what happened with the COVID change. Now, for our point of view, we are already in the third wave, speaking about for the companies. Speaking about for the users, the vendor, with whom we are speaking about this aspect, are really not all aligned on what we can happen in the next month. We see a consumer demand, so demand of the user. We are speaking about the retailers and retailers market that are stable or in this moment is decreasing a little, and this is also reflected to the unit sold in H1 that were less than H1 2025. But to forecast now what will happen in the next three to four months, because we are speaking about Black Friday and Christmas campaign, it's quite difficult to forecast. An average of the vendors are saying that the reduce of the units sold will be less, but less in important percentage respect of the increase of the price. So the turnover and the EBIT margin related to that part will increase. The last one was about Innovexya. We launched Innovexya in March 2026. Is in a division that is fully working since some week because we have created the structure, we have hired all the people that we needed in the sales department that mentioned before. So we have seen for Q2 that the result was a 40% of increase of the turnover. But overall, as we can define our activity, we are, in this moment, in a phase in which we are explaining what Innovexya can do for our customers and for the end user, and what the services and solution that we have sold. Well, we can sell sometimes in exclusivity. For example, we have signed a contract in exclusivity on June 22, 2023. I do not remember. There is a date with that for a cybersecurity and artificial intelligence solution that is called ACSIA, that we are offering. We are starting to offer overall in the public administration, local and central, with good results. We are in a phase in which we are explaining, and we are quite confident that in Q3 and Q4, and that is for sure in for 2027. We will take the result from the market of what we are doing now. We are happy because the result is good, so we cannot be different that we are happy for the turnover, for the bid margin results. But we think there is a big space in which we can grow in the next quarters. Thank you very much. As a reminder, if you wish to register for a question, please press star and one on your telephone. Once again, if you wish to ask a question, please press star and one on your telephone. Ms. Perfetti, gentlemen, there are no more questions registered at this time. Okay, thank you. We can end our today's conference call. Thank you for participating and, of course, we remain at your disposal. Thanks again and see you next time. Thank you to you, and we see you next time in November for the Q3 result. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.