Good afternoon. This is the Chorus Call Conference operator. Welcome, and thank you for joining the Tinexta Group Consolidated Results at the 30th of June 2021 conference call. After the presentation, there will be an opportunity to ask questions. At this time, I would like to turn the conference over to Mr. Josef Mastragostino, Chief Investor Relations Officer of Tinexta. Please go ahead, sir. Thank you. Good afternoon, and good morning to the folks in the U.S. Thank you for joining Tinexta's first half 2021 results presentation. Here with me today, Pier Andrea Chevallard, CEO of Tinexta, Oddone Pozzi, CFO. Good afternoon, everybody. As a reminder, all the relevant documentation of the first half 2021 results can be downloaded from our company website in the investor relations section. For the purpose of this call, I will go over the first half 2021 highlights and updates, as well as provide all the relevant information related to the recently announced M&A. Oddone, instead, will go over the first half 2021 financial results, as well as the business unit performance, providing us with deep dive. The last part of the call will be dedicated to Q&A. A recording of this conference call will also be available on the company website, and it will be posted upon completion of this call. At this point, I will kick it off by turning to page three of the presentation. The first half 2021 results are on track for delivery, showing continuous momentum and providing support for growth. Please note that in order to allow as complete analysis as possible, 1H21 results are compared both at constant 2020 perimeter as well as on a 2021 perimeter, which includes all of Tinexta's companies with the addition of the newly acquired ones. Revenues came in at EUR 177.8 million in H121, posting a plus 43.6% increase versus prior year or 12.6% on a 2020 basis. For a matter of completeness, we are also providing EBITDA adjusted, which excludes stock options and other non-recurring items, as it is management's view that such indicator better represents the real performance of our business. For that matter, EBITDA adjusted came in at EUR 42.3 million in H1, posting a plus 21% growth versus prior year or a six percent growth on a 2020 basis. EBITDA reported, which is after stock option, came in at EUR 40.3 million in H1, posting a plus 17% versus prior year or two percent growth versus 2020. In terms of EBITDA adjusted margin, that came in at 23.8%, and EBITDA reported margin was 22.6%. EBIT was strong and grew 22% versus prior year at EUR 26.4 million, and EBIT margin was at 14.8%. Noticeable was net income, which was EUR 20.6 million or close to 30% growth versus prior year or 16% on a 2020 base. Cash flow was solid at EUR 29.7 million in H1, growing on an LTM base to EUR 67.5 million. Net financial position was EUR 205.2 million, and leverage was two point four times, entirely reflecting the recent acquisitions. In terms of key metrics, from a preliminary analysis conducted on 1H21 results, 66% of Tinexta's group revenues are recurring. Growth came from all of our business units, which contributed to growth versus the prior year. Digital Trust grew 14.9% in revenues, with EBITDA growing 11.8%. EBITDA margin was 24.5%. Cybersecurity revenues reached EUR 34.6 million, and EBITDA margin was above 10%. Credit Information and Management increased 9.7% in revenue, with EBITDA growing 12.5%. EBITDA margin was 29.5%. Innovation and Marketing Services posted a healthy 23.6% growth in revenue, with EBITDA rising 14.6% and with an EBITDA margin of 41.1%. The group carried out considerable M&A activity in all of our business units. In fact, we completed successfully three key deals and one MOU between the months of June and July of 2021. In order, on the 21st of June, we purchased 100% of Intesa Sanpaolo Forvalue. This was a cashless transaction with Intesa Sanpaolo Forvalue being conferred into Innolva for a 25% exchange. The aim is to establish a single integrated domestic group for higher value-added services to SMEs and also to strengthen the leadership of the company. On the first of July, we signed an MOU with Leonardo S.p.A. to collaborate on Industry 4.0 and data security projects for the country's manufacturing systems. The objective is to provide the market with effective and comprehensive responses to reduce the risk of cyberattacks in the context of digital transformation. On the 16th of July, we bought 100% of Financial Consulting Lab, FCLab, to further strengthen Warrant Hub's commercial presence in Lombardia and Veneto, providing services mostly targeted to SMEs. Lastly, on the 21st of July, we acquired a majority stake or 60% of CertEurope in France, which is the second largest market in Europe. Tinexta therefore enters the French market with the purchase of one of the largest certification authorities. That means strong internationalization for InfoCert, which is now allowed to sell its solutions in France. Turning to page four, let's discuss a bit more on Intesa Sanpaolo Forvalue. Just to give a little bit of a context to our group, this is a transaction under the credit information management segment. It is a cashless transaction with equity exchange at the segment level. The transaction sees Intesa Sanpaolo transfer 100% of its shares in Intesa Sanpaolo Forvalue to Innolva. The exchange of 25% was valued at an equity value of EUR 55 million. There are put and call options on the 25% share capital held by Intesa Sanpaolo in Innolva, subject to the termination of the partnership and/or certain results with respect to plan targets. These put call options are exercisable in two years between the period of 2025 and 2026. There's an earn up of up to an additional five percent in the event that certain planned objectives are exceeded and ratified with the approval of Forvalue's 2025 financial statements. In the final year of the plan, therefore by 2025, the transaction is expected to lead to additional revenues between EUR 55 and EUR 60 million into an expected combined margin consistent with that of the various business units, namely CIM and IMS. We successfully completed the closing on July 21st. Turning to page five, Leonardo and Tinexta signed an MOU to protect the Italian manufacturing sector from cyber attacks and in particular, the sectors which have proven most vulnerable in these attacks in the past years. You're looking at manufacturing companies, financial and services companies, the textile and fashion services, as well as utilities. Leonardo and Tinexta will integrate their respective vertical technology components in the areas of the Internet of Things, operational technology, as well as Digital Trust. We have not provided any financials here because the partnership will be directed by a joint steering committee, which will evaluate and therefore identify all future initiatives. Turning to page six. Here it's about Innovation and Marketing Services, and in particular Warrant, which purchased 100% of Financial Consulting Lab and Financial CLab. The enterprise value for this small acquisition with 100% of the capital was EUR 4.5 million. Both of these companies are based in Brescia, and there is strong commercial presence in the regions, again, of Lombardia and Veneto. The companies mainly target SMEs and will strengthen Warrant Hub's penetration in these two highly strategic regions. Turning to page seven, this is a very interesting and important deal, which brings a strong international footprint to Tinexta. The group purchased the majority stake or 60% of CertEurope, which is an extremely well-known brand in France. It is based in Paris. It has a leading market share with 40% of ADA certification. It holds full authorization and accreditations for the issuance of all certificates in the French market. Above all, it has solid business and commercial relationships with important trade associations, namely lawyers and notaries, as well as large retail resellers for digital services. From a strategic standpoint, Tinexta via InfoCert enters the French market, and Infocert is therefore allowed to expand its services and products in France. The market is extremely attractive and exciting because the total Digital Trust market in France is valued at EUR 150 million and is expected to grow 23% on an annual base, reaching half a billion EUR by 2025. The company we acquired is currently the third player in France with about 10% market share. Let us give you some numbers. In terms of enterprise value, the 100% of the capital is EUR 66.7 million. CertEurope on a 2020 base generated EUR 14 million of revenues and a pro forma EBITDA of EUR 5.2 million, or more noticeably, 37% margin. The 60% stake is equal to EUR 43.8 million, which includes EUR 3.8 million of earn out relative to 2021 and 2023 performances, and no debt is envisioned at closing. There are put call options on the minority interest that are exercisable by 2023. These put call options of the minorities are valued at EUR 28.4 million for a total investment of around EUR 72 million. The 60% stake will be funded by existing cash. Closing is expected by fourth quarter of 2021. Turning to page eight, most of these items have already been commented, I will leave it to Oddone for his part. Okay. Good afternoon, everybody, and thank you, Josef. As Josef has already welcomed the comment of the performance of Q1 that is perfectly aligned with the objectives that the group indicated at the beginning of the year. The revenue went up quite significantly during Q1, both on a like-for-like basis as well as with the change of perimeter. On like-for-like basis, the revenues went up close to 13%, and this is a very encouraging and positive result. If we move to the EBITDA before stock options came at EUR 41.2, but this included also a portion of non-recurring expenses we faced in order to promote and manage the acquisition and M&A processes. The EBITDA adjusted is EUR 42.3, that is very close to 24%, and compared to the 26.6% of previous year. This is driven by a change in the mix of activities compared year-on-year. Definitely, the inclusion of the cybersecurity, as expected, as we already communicated to the market, is squeezing a bit our margin profitability while the rest of the business was keeping very interesting and positive profitability. EBITDA overall closed at 14.3%, growing on a like-for-like basis at six point one percent. Depreciation amortization went really accordingly to our expectations, like above prior year. We have to consider that we increased the perimeter of our activities. Financial charges went up a little bit, driven by the different perimeter we have and following the acquisition we performed during January 2021. We move to profit after taxes is going up 15% compared to previous year. The income taxes, we got a benefit that we booked during the last part of Q2, as we had the opportunity, basically, to get a tax benefit by anticipating less than EUR 1 million cash, that is therefore the opportunity to deduct in the future, in a better percentage, the relevant depreciation. Basically, the income taxes were EUR 3.8 million. This led to a net profit that is EUR 20.8 million. It's very close to 12%, growing close to 30% compared to the previous year. If we go to the balance sheet, we do see definitely increase of net capital investment. This has been driven by the acquisition that the group performed, more than EUR 100 million acquisition of Corvallis, Yoroi, and Queryo that occurred during Q1. The group continue to handle in a very positive way the working capital that is even improved compared to December and much more improved compared to June last year to be negative by EUR 50 million. The net financial position grow to EUR 205 million compared to EUR 92 million of the end of the year. Like I said, we have basically acquisition for EUR 110 million. We distribute dividends close to EUR 13 million, and we perform the put adjustment basically on the cybersecurity acquisition, driven by better results expected from this company. The buyback program went up again. We acquired shares for almost EUR 6 million, and as of today, definitely shares we bought are well below the current market price. When we look at shareholder equity, it went down a little bit, basically driven by the profit of the period, of course, is EUR 20.8 millions, is increasing. We distributed dividends, obviously, the buyback program and the put adjustment is decreasing the total value of the shareholder equity. The net financial position is, like I mentioned before, is increasing, we kept very positive working capital improvement. The working capital improvement has been delivered also in Q2, despite the fact that we face a cash out for taxes in Q2 of EUR 13 million compared to the EUR 6 million of previous year. This means that we were able to continue to keep a very high conversion of the EBITDA in cash. If you look at the last box at the bottom of page 12, in the last box in the right part, the LTM free cash flow has improved quite significantly if you compare year-on-year. Last year, the same time of this year was basically EUR 47 million on an LTM basis. This year is EUR 67.5. This includes basically an improvement in cash generation from working capital in the range of EUR 20 million, that is definitely a very, very positive result. At page 13, you may see that the net financial position, EBITDA ratio, calculated on LTM basis, is at two point four times and perfectly aligned with our expectation to land by the end of the year in the range of two times. As you may see here, basically, the free cash flow is EUR 30 million, then we distribute the dividends, and the acquisitions overall, combined with the put agreement, are calling for EUR 120 million or worse in the net financial position, as explained before. In page 14, you may see it on LTM basis. What is changing here is that the free cash flow overall is at EUR 67.5 million, as I mentioned before, very strong cash generation that is supporting our programs of M&A, and the acquisitions over the last 12 months accounted for EUR 145 million. Let's move now to the different business unit performance. We talk about the revenue going up on a like-for-like basis at 30% and 44%, including the change of perimeter, while the EBITDA is growing six percent on like-for-like basis and more than 20% in total. As you may see here, all the business units were able to increase both revenues and EBITDA. This is exactly what we do expect when we share with the market the projection and the expectation for the year and the following years. I'm going to deep dive in each business unit in the following page, starting from page 17. Here, you can see the Digital Trust. We are very happy of the result of Digital Trust, that it was able to grow basically 14.9%. It means that total revenues amounted of more than EUR 62 million, is a very solid and important growth. If we exclude non-recurring costs and stock option costs that may fluctuate year on year, on a same perimeter basis, basically, the EBITDA is growing 12% above the double digits. Here, the mix is driven as slightly below EBITDA margin percentage, but we are not at all worried of this. This has been driven by a different mix of what we delivered. Perfectly aligned with our expectation. We do believe this solid growth is expected to continue during the rest of the year, having the right mix between off-the-shelf product and capability of delivering digital transformation project as we have done. SPID is doing very well, is growing fast, even faster than our expectation, and this is partially affecting our margin, but the revenue is very solid. We move now to cybersecurity here. The cybersecurity, although we have no comparison to the previous year, even pro forma data are more available. As you know, the cybersecurity is a mix of three different companies, and one of the three company was already a merge of different businesses. At the end of Q2, we may say that both revenues and EBITDA are aligned with our expectation. Definitely, if we look inside the EUR 35 million, we deliver the revenue, there are definitely core values, business part, and system integration is still the most important part. The revenues from Yoroi and Swascan are growing basically in line of what we expected. This is very important to us. Our two quarters we are consolidating this business, and we do believe that this is on the right track, is aligned with our expectation. EBITDA margin is at 10.1%, aligned with our expectation. We do expect in the second part of the year, the EBITDA margin growing faster. If we move to credit information and management, despite the still tough market, because from one side, now at the beginning of the year, still we had some limitations in the business and the circulation. We have to say that grow close to double digit is very positive and very encouraging. We have to say that compared to previous year, our revenues related to business process outsourcing with reference from the Centrale Garanzia are slightly below, as expected. From another standpoint, we do expect this kind of business to continue also in Q3 and Q4, and to reach perfectly the goals that we shared with the market in the early part of the year. Compared to previous year, the real estate activity is improving quite significantly. We had a very solid growth here, and the management was really able to capture all the opportunity the market offered, and was able to deliver the very solid growth, as well as a very solid improved EBITDA margin. Overall, we may say that also the pure business information and credit information business grew compared to the previous year, and this is definitely a very solid result, and very good news for us, as this is a market that is, let's say, at least shrinking. So we are also glad that also this part of business was able to grow both in revenue and EBITDA at the double digits level. Let's move now to innovation and marketing services. You know that here, basically, we have three main components. We have the component of Warrant, with consultancy to, let's say, Industry four point zero services and opportunity. We have our consulting businesses to export, we added the newly acquired company that is Queryo, that is consolidated also from January first. Overall, on the same perimeter basis, the revenue was able to grow, also here, more than double digits. This is definitely very positive. Co.Mark start again to grow, compared to previous year, and Warrant also was able to grow compared to previous year, despite the market that is offering to its clients, let's say, lower tax benefit compared to what was happening in 2020 and what is expected to happen in 2022. We knew that this year we were facing this situation with lower tax benefits for our customers, as part of our revenue is linked to the benefit that our clients, we knew that we may suffer a bit. Any case, the revenue went very well, Queryo deliver in just one quarter, EUR 4.1 million of revenue. If we move to the EBITDA, also here, we were able to grow on a same perimeter base at three percent, with the addition of Queryo, we grew by 15%. Also here, we are glad for the results we were able to deliver. If we move to the closing remarks, after Q2, we may say that we are perfectly on track of what we shared with the market during February 2021. Comparison to our internal budget, we are totally aligned. We are here to confirm, basically that we plan to deliver revenues in the range of EUR 370 million and EBITDA at EUR 96 million. Net financial position, EBITDA, is expected to be in the range of two times, as already shared with the market. I would ask the operator to open to Q&A, please. Excuse me. This is the Chorus Call Conference operator. We will now begin the question and answer session. The first question is from Isacco Brambilla of Mediobanca. Please go ahead. Hi. Good afternoon, everybody. Thanks for taking my questions. I have three. The first one is on your guidance. If my math is correct, your EUR 96 million EBITDA target implies basically a flat EBITDA growth in the second semester, excluding the contribution from the cybersecurity business unit. This would imply quite a marked slowdown compared to the trends seen in this semester. I was just wondering if there is some element that you can specify in some of your business units which make you so conservative in terms of implied growth for the second semester, or if it's just general conservatism because of the macroeconomic context we are living in. Second question is on the CertEurope deal. Can you provide us more color on the top line synergies, which may be potentially unlocked for Infocert and for the other business units of Tinexta Group? The very last question is on M&A. You have been very active, actually completing great deals, by the way, in the last month. Should we expect your M&A campaign to be put on hold in the coming quarters, or you have further targets currently under evaluation? Okay. Let's start from the guidance. No, we do not believe at this stage that this is conservative. We shared with the market the EUR 96 million target based on our internal projection and budget. As of the end of Q2, we are perfectly aligned. We know that the second part of the year is the most challenging part. As you know, we have still a lot of room to do, but we do not believe it is conservative. Definitely, if an opportunity will come, as usual, the group is going to take that. As of today, we think that our projections are very balanced. For the second question of CertEurope, definitely this is an acquisition of InfoCert, so it's in the Digital Trust area. We do believe that there could be opportunity of synergies between the two companies, as you mentioned, basically on the revenue side. We do believe that InfoCert, compared to many other companies around Europe that are operating in the same arena, InfoCert has developed a very strong digital transformation management activity. This is what is making InfoCert one of the most interesting company around Europe, and this is what InfoCert is looking to bring to the French market, its capability, working together with a very solid baseline, very solid customer relationship of CertEurope. We do believe that InfoCert will be able to help the company to enter also the market of project, the market of digital transformation management, having the opportunity, therefore, to bring a very solid growth down during the time. M&A? M&A. We are not as usual, we are not disclosing any target in advance. As usual, as Mr. Chevallard has done over the last 10 years, the group was able to pursue and to achieve very important targets in the M&A. We do believe that the group is a solid track record. The group has a solid cash generation. Banks are there to support us in the acquisition. As shared during the plan presentation, we will continue our process of M&A, looking for targets mainly in the Digital Trust and innovation marketing services on international basis, and talking about significant targets. We may have some add-on, as we have done for the projects that we have, but it's small things. For other business unit, we will see. If the right opportunity will come, we will be ready. Priority is what we already mentioned at the beginning of the year. We will continue. Absolutely, the goal is to have Infocert very well positioned in Europe, at least with presence in France, Spain, or if other country may have an interesting target, we will look at it. The same thing we think may happen for Warrant Hub in innovation and marketing services. Thanks very much, Oddone. Thank you, Isacco. You're welcome. The next question is from Russell Pointon of Edison. Please go ahead. Hello, everyone. A couple of questions from me. First of all, on Digital Trust, I think I asked this question in the last quarter, too, but your two-year growth rate on Digital Trust now is over 20%. I'm more interested in actually where you're seeing the growth which is coming through, which is stronger than expected. Could you talk about which products are doing better than you might have expected at the start of the year? The second question, which combines two divisions, really. In Credit Information and Management and Innovation and Marketing Services, there was a bit of margin compression Q2 this year versus Q2 last year. I appreciate the margins in these businesses move around a bit quarter-by-quarter basis, but this time last year, we were right in the middle of the pandemic and lockdown. There may be some business mix changes in there, but could you just give some better feel for why there has been that margin compression? The third question is on cybersecurity. Obviously, you're looking forward to much higher margins in the second half than the first half. Is that really because the first half has just been a bit of integration expense, that kind of thing, and is therefore the second half a bit about accelerating revenue momentum and those costs dropping away? Thank you. You are welcome. Let's talk about Digital Trust. We never mentioned to have a Digital Trust growing 20% per year. We always mentioned that also the plan that we share in February was a growth with revenue below double digit and the increase of EBITDA above double digit. This is our long range plan. If we look at just first half result, definitely we have not to judge the performance on a couple of quarters. This has basically been driven, we grew in term of revenue above expectations, and we have a slight compression of the margin. What has happened is that we had a little bit more than expected revenue from off-the-shelf products, as well as we have with one of the largest customer in Italy, a big deal that includes also a resale of software. The combination of the two things in just one semester has increased the revenue above expectation and depressed a little bit the EBITDA margin. On the full year, we are here to confirm that we are expect to deliver exactly what we shared in June. Probably revenue will be a little bit higher, and the EBITDA may follow on the same basis. I think we are talking about really small things if we look at just one output. If we talk about innovation and marketing services, we have to consider that last year, basically, the activity of Co.Mark was really depressed during Q2 especially. The weight of Warrant business increased. This is the reason why also the margin has increased so much as 44%, as expected. This year, is regrowing now Co.Mark that has embedded lower margins, so the mix is penalizing a little bit. On top of this, we were expecting this, during this year, Warrant business is going to be impacted, as I mentioned before, by the different tax benefits that the clients may have, driven by the current budget law. We do expect, in the second part of the year, that is the most important part of the year for Warrant business, in particular Q4 is the strongest quarter. We do expect the margin to be restored and, even more importantly, value, the EBITDA in absolute value to be delivered. I would say that this is a timing situation, and already the budget law for 2022, for example, is expected to be very different. We get significant increase of tax benefit for our customers. If we talk about cybersecurity, we have no comparison that we may share with the market as they are not certified, and they are not data that we consolidate the previous year. The revenue is perfectly aligned with our target, and the EBITDA margin is what we were expecting. Definitely, the second part of the year, also here, is the part where we deliver more revenue, and definitely we deliver more margin, so the profitability is going to increase. Also here, overall, we think to deliver what expected. By the end of the year, we do expect the cybersecurity to deliver an EBITDA margin range of 12%-13%. As a reminder, if you wish to register for a question, please press star and one on your telephone. The next question is from Carlo Maritano of Intermonte. Please go ahead. Good afternoon, everyone. I just have a couple of quick questions. The first one is on the tax rate. Mine was wondering, what do you expect in terms of tax rate at your end, excluding so the non-recurring items you're releasing in the first part of the year? The second one is related to the small acquisition in the innovation and marketing services. What is the contribution in terms of revenues and EBITDA of the two acquisitions of Financial Consulting and Financial Lab? Thank you. Okay. Looking at tax rate, I will make it very simple. Last year, we got a EUR 1.1 benefit from the credit sustained related to R&D, and this year, on the same subject, we have EUR 0.8. Year-on-year, you may consider this as a standard, and you may apply them when you calculate the year-end tax rate. We have a one-off benefit, that is net, is EUR 3.4 million that you may deduct when you run the usual tax rate. This EUR 3.4 million is what is called in Italy, affrancamento. We had a cash out of EUR 0.8 million, and we recorded a benefit of EUR 4 million. If you mix the two, you have a one-off benefit of EUR 3.2 million. That's all. Normal tax rate with this benefit from what we call here affrancamento. Okay. About the small acquisition in the innovation marketing services, here we are talking about add-ons that we perform in order to complete our offer, in order to cover better some areas of the tier territory. We do expect an EBITDA margin in the range of normal margin of consultancy that may be in the range of 20%-30%, but nothing significant if you consider also the cash out we had. The multiple are in a very low range. Okay. Thank you. You're welcome. For any further questions, please press star and one on your telephone. Mr. Mastragostino, there are no more questions registered at this time. Excuse me, there is a follow-up from Isacco Brambilla of Mediobanca. Please go ahead. Hi, just a very final question from my side. On the performance of Co.Mark, can you give us some more details on the performance in the first semester and also on the outlook for the overall business, which should be supported, I guess, in the future from government measures to support international expansion of SMEs? Yes. We have to say that Co.Mark last year suffered a very difficult, especially in Q2. The company was able, starting from Q3, to being able to combine a remote support with the physical support with the company. We have to say that Co.Mark, during basically, the first half, was able to deliver results growing both in term of revenue, EBITDA compared to previous years, not yet a level of 2019, but definitely a very good result. We do expect also the second part of the year to continue to grow compared to previous year and to deliver a year-end result definitely better than previous year. Again, also here, align with what we expected at the beginning of the year. Mr. Mastragostino, this was the last question. Back to you for any closing remarks you may have. Thank you very much for connecting to Tinexta's conference call. If you need any additional information, please don't hesitate to contact us. Have a good evening. Bye.