Good afternoon. This is the Chorus Call Conference operator. Welcome, and thank you for joining the Wiit First Quarter 2023 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 by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Alessandro Cozzi, CEO of Wiit. Please go ahead. Good afternoon, everybody, thanks to joining in this conference. Board of Director this morning approved the results of the first quarter 2023. General review was the figures are very, very well. We are very happy. I start with the highlights. I can follow the presentation, with the presentation I sent you can follow the presentation. highlights, first, the growth in term of sales, we growth over 20% compared last year, thanks to organic growth, expansion for the existing customer, acquisition of new logo, and a good contribution from the new two company acquired the first one last year and the second one the first quarter of this year. EBITDA growth, first, EUR 12 million, plus 19% compared to last year, it was EUR 10 million. EBIT margin was EUR 6.7 million, growth 17% compared with the EUR 5.7 million of Q1 2022. The margin of the revenue was 21%, increased a lot compared to last year. Adjusted net profit, EUR 3.9 million, 20% plus the Q1 2022. Adjusted net finance position, including the IFRS impact, was debt for EUR 191 million. We are considering this debt, we have treasury share for approximately EUR 32 million. During the first quarter 2023, the energy cost was EUR 2.5 million compared with EUR 2 million, partly in German, where we have 60 data center and this is the consequence of the increasing of the energy, but we add the cost of the new data center the company acquired in this period. We can jump to the first page two of the presentation highlights. EBITDA margin increased a lot to 37.8% as a result of strong synergy we have been able to achieve in the first quarter and the starting of the billing of all the contract signed in the last part of 2022. EBIT growth EUR 6.7 million compared with EUR 5.7 million, and the margin 31% reflect the investment we have last year in terms of our new data center expansion and develop CapEx we did last part of the year to support the new onboarding client. Net profit, EUR 3.9 million, growth the same percentage of the EBITDA compared with EUR 3.2 million Q1 2022. Net debt. These figures is net debt, excluding the IFRS impact of the rent of the space and including the value of treasury shares with a value of 31 March 2023. The net debt is EUR 146 million compared with EUR 140 million end of last year. Consider that, in this period, we have the acquisition of Global Access for EUR 6.3 million and the impact of IFRS of the data center of Global Access for over EUR 2 million, and buyback for over EUR 2 million. Breakdown, we can jump to the page three. You can show the breakdown of revenue and EBITDA Italy and Germany. For the first time, we are very happy to discuss this with you because this was our target in the last two years. Germany overtake Italy in term of EBITDA and in term of revenue. The revenue in Germany is at the moment 54% of the total group revenue, and the EBITDA is EUR 6.1 million in Germany and EUR 5.9 million in Italy. Consider that our expectation in the next quarter, in the follow quarter Italy, we will have the positive impact of the contract signed in the first quarter. Italy we had a very, very positive closing in term of booking the new customer and all this contract impacted our quarter in the last part of the fiscal year. In term of EBITDA, Italy performed very well, 14.8% EBITDA margin. That means the refocusing of the high-value services and the achieve of the cost synergy, you can see in this result because the EBITDA margin Italy jump over 40%. Last year the EBITDA margin Italy was below 40%. Germany, EBITDA margin is 35%, very good, but is strongly impacted from the cost energy. We have 2 point of EBITDA related decrease for the more cost of energy. I want to remember that we have just signed an agreement with the local carrier in Germany, in Düsseldorf, that we have the possibility to come back to EUR 0.11/kW from The 1st January 2024, with the assumption we can increase our EBITDA margin in Germany with a reduction of the consumption, the cost of consumption of energy. Page four, 80% of Wiit revenue at the moment is recurrent and 84% group level. That means, in Germany at the moment, we have the highest level of recurrent revenue. In Italy, we have a residual part of revenue recurrent, but we are working to move the residual part of non-recurrent revenue to the recurrent. One-off is 20% in Wiit and 60% group level. Consider that this quarter we have a positive impact of the onboarding of a new client. That means, we have a little more revenue than the usual trend. Revenue, page number five, about the revenues, EUR 31.8 plus 20%. Organic growth means in Italy we growth 7.8%, but in the core revenue, cloud services, we grow 9%. In Germany, organically, we grow 4%. In Germany, we have two different scenario. All the companies acquired growth double digit or very, very close to that. We have one single company, you know, Cyberoo is stable, because we are at the moment improve the sales team. At the moment, the company don't have the capacity and the sales team inside. We are improving that, and we, our expectation is that this company start to grow organically next year. The contribution of company acquired was EUR 1.9 million related to Rosson & Partners. Rosson & Partners grew very fast. In the first quarter growth, actually 20%, roughly. Very, very good results. EUR 1.8 million related to Global Access, and EUR 1.8 million related to ERPTech. With adjusted, I just anticipate that increase thanks to the cost synergy, another focus on the high value services. In these figures, as a result, the achieve restructuring of ERPTech, because when you bought, you bought this company, EBITDA margin was close to zero. In the Q1, ERPTech is just 30%, roughly 30% of EBITDA margin. It's very, very fast recovery. It's not totally recovered, but is 70% of the target. That means in Italy, 40% included this ERPTech organization is from our point of view, is a very, very good result. We go to EBIT. EBIT increased to EUR 6.7 million. These figures are exactly in line with our budget, thanks to the... This reflects the high CapEx that we had last year. We confirm that for this year, our expectation in terms of CapEx, we come back to EUR 22 million-EUR 24 million. We generate cash this year because the EBITDA increase a lot and the CapEx decrease compared with the last year. Net profit, plus 20%, EUR 3.9 million. Net debt. Net debt, Adjusted, EUR 146 million. We have, we pay EUR 6.4 million plus the IFRS impact for the acquisition of Global Access. We have strong operating cash flow, EUR 33 million. Treasury share buyback, EUR 2 million. The treasury share value is EUR 32.8 million. It's not included in the accounting. The release of investment activity for EUR 8.7 million for new CapEx and also for the new data center, therefore Milan and Dusseldorf. IFRS significant increase from EUR 10 million to EUR 12.8 million for the consolidation of Global Access. I remember that all the debt of the group is very, very safe and secure because it's all about related about the bond issued in 2021, the company pay a fixed rate for 2.37%. Okay, I think that is all. We can start the Q&A session. Excuse me, this is the Chorus 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 their touch tone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. The first question is from Giorgio Tavolini with Intermonte. Go ahead. Hi. Good evening. Thanks for taking my questions. I was wondering if you can elaborate more on the energy headwinds. You mentioned the 2 percentage point in Germany on the German margin in this quarter. You said also the benefits from 2024 from the agreement with the local utilities. How should we look at the next quarters, Q2, Q4, headwinds, do you expect a similar 2 percentage point impact? The second one is on the onboarding of new clients. You mentioned there was a contribution this quarter, one-off contribution. I was wondering how much it contributed to the revenues. The third question is on the CapEx. You also said that you expect to come back to EUR 22 million-EUR 24 million CapEx, decreasing it from last year. If I remember correctly, in the last quarter, you mentioned EUR 4 million CapEx shift from 2022 to 2024, leading to EUR 25 million CapEx for this year. Should we expect a lower CapEx this year or we have to stick at the 25? Thank you. Okay. About the first question, the cost energy, there is a misleading information. 2% is the impact, negative impact for the full EBITDA German level. If the cost of energy come back to historical value, the EBITDA margin Germany jump to 37%. Okay. The impact is roughly EUR one point half million yearly value, more cost of energy. This EUR one and half million we expect to have next year because we just signed with a carrier, electrical carrier in Düsseldorf, the price, the new price of EUR 0.11 a kW. That means with the same revenue, the cost reduction is roughly 2% of the total revenue. Not the quarter, it's the full year. Okay. About the. Okay. sorry, Alessandro, it's 2% of let's say EUR 17 million revenues. Exactly. roughly it's EUR 3 million, EUR 3.5 million. If If correct the impact on... No. No, no. The revenue in Germany is EUR 17 million in the quarter. The revenue in Germany. 2% is EUR 300,000. EUR 300,000 quarterly. Yeah. Sorry. EUR 1.2 million is yearly value. Okay. Yes. Correct. Okay? It's 2% of the revenue, the more cost we are at the moment are paying in Germany. That means the EBITDA is lower of 2%. Okay. Regarding the onboarding? The onboarding, if you consider the organic growth, 8% in Italy, in this quarter I think 5% or 6% is a new client. Okay? Because at the moment the mix is little change, we have more revenue from new logo and lower revenue from upselling. The una tantum [foreign language] of the first quarter is lower than the fourth quarter. We don't have impacted the first quarter with for una tantum [foreign language] revenue. Increased the recurrent revenue. 60% of this more recurrent revenue is incoming from new logo. Okay. With the client onboarded last quarter, considering that we start to bill the customer when the migration is end. You are including the healthcare clients and the other one in the retail, the big retail client that you acquired very recently? Yes. Yes. Exactly. Okay. Exactly. In care, to be honest, start in the second quarter. There is the client signed last quarter of 2022, very small part of the client signed in the first quarter. Because the onboarding period is six months. Okay? Probably we have very no material impact in the first quarter for healthcare and for retail we disclose the market. In the second quarter and the first quarter, we have full impact of these new clients. The last part of the increases is the contract signed last year, last quarter, onboarding during the first quarter. We are already always 6 months delay from the sign of the contract and to start to charge the service of the customer because the migration period is usually four or six months. The last question about the CapEx. CapEx. I confirm. Yes. I confirm that means, our expectation is EUR 25 million, included EUR 4 million coming from the 2022. Consider that we have EUR 2 million more CapEx related to IFRS 16 of Global. The problem is from 25 to 26, because the acquisition of Global Access means add additional IFRS CapEx for EUR 2 million, EUR 2.5 million. Mm-hmm. Many thanks. The next question is from Domenico Ghilotti with Equita. Please go ahead. Good afternoon. My first question is a follow-up on the, on the energy cost, because you partly passed the energy cost in Germany to clients. I wonder if, when you have a declining cost, you will have the same pass-through to clients, or partly this saving will be partly offset by this pass-through. Second question on the organic performance. Looking at organic growth in Germany, 4%, you were mentioning Boreus, Flatish, and looking at Italy and the, and the pipeline, the announcement, should I, should I expect to see the mix in organic growth in 2023 being more skewed towards Italy? If you can provide any color on what should we expect and what is the pipeline? Because, you know, there is a lot of focus also on potential deceleration in the cloud services in Europe. If you can comment on the German market, if you see any kind of lower demand. Third is on the I saw that in the press release that there is a potential put option in which the seller can decide to get Wiit shares or cash, if I'm correct. Just could you clarify if there is the possibility that you are paying so the EUR 10 million in cash instead of giving shares? Thank you. Sorry, Domenico. The last question, we did not understood clear. If you can say- Yeah, is the EUR 10 million, because I saw in the press release, if I'm not wrong, that there is a potential, say, put option in which instead of giving shares for the acquisition of Lansol, if I'm not wrong, you could pay in cash. Just checking if you... Okay. Okay, this one is related to the Boreus. This is. Yeah, Boreus. Correct. You're right. I started to answer the last question. About the acquisition of Boreus, we had inside the escrow account EUR 10 million of share to guarantee the results of 2022. The result was totally achieved and now we have to pay this amount. At the currently market price, the seller decided to receive cash and come back the share to the Wiit. We increased the original share for EUR 10 million and we pay cash the last part of the transaction. Okay. In the second quarter you will have a EUR 10 million additional debt? Yes. Yes, correct. We take the share. Yes. Yes. Thanks. I'll start. Energy spending. Energy spending. It's correct. Probably something client could ask us to reduce the price in future. Consider that we don't pass through all the cost of the customer. The pass-through was roughly EUR 1.2 million. Is divided to many customers, more customer. To be honest, I don't see the risk at the moment as here the client to ask to reduce the price because we are very competitive in this business. There is inflation. We are probably something client can ask for these topics, but I don't consider at the moment the risk. Consider that only we increased the cost EUR 4 million last year for the cost energy, and the pass-through was EUR 1.3 million, 30%. Also considering that we confirmed the price before the war. Probably the real market price of gas will be not as lower as we will have. We will have the benefit, but the price market into the market will be higher. There's not really the visibility of the clients of this reduction. Probably we will not. In general it's 30%. Yeah. If you have EUR 1.2 million of less cost, the total risk is EUR 300,000. It's not material. Okay. Very clear. In terms of organic growth, our expectation is to grow strongly in Italy, more in Italy than in Germany. The reason is, in Italy, the offering is more mature. The brand identity, the brand awareness in Italy is strongly than in Germany at the moment, because in Germany we are at the early stage. Now we are starting to push our higher services, but we need one, two years to transform the Wiit in Germany in the same company we have in Italy. The good news is in Germany we have a very good results. Whenever we don't have the moment the high value offering. We are more traditional in Germany, but the market is very huge. In general the cost of lease is competitive. The cost of energy is lower than Italy. For this reason, we achieve 35% of EBITDA. Sell higher your services. Yeah. We can improve. Yeah. It's belonging more on the maturity of the sales organization. Of course, Italy is performing very good. The booking of the first quarter is in line with the expectation of the. The pipeline is very good. The pipeline is good. Of course, the booking of Italy was much higher, quite higher compared to the German one, but it's more on the maturity of the sales organization that we have in Germany. Some part of the companies we acquired, Boreus is one, were not used to have sales. We changed this year their overall organization. We are waiting for the onboarding of the new head of the north of Germany that is happening in one month. They are growing. There's no. For my visibility, I spent the last month, all the four weeks in Germany. There's not really a slowdown of the economy. There's no slowdown of the economy, there's not a real expectation in terms of reduction of the demand coming from the client. It's more on our side. The good news is that Lansol and Global were used to have an internal organization. This is, booking for the first, the last quarter of last year and also for the first of this one are good, the sales are performing. There is more a lot of to do on the overall improvement of the maturity of the sales organization overall Germany. That's a real goal. In Germany, what we see about the market is a very grow market. We see actually the euros results in term of cloud growth 18%. The market continue to grow double digits. At the moment, we are working to create this new sales organization. I think we can start to obtain some few results by the end of this year, next year. We are working for next year results in Germany. We don't want to stop the traditional organic growth in Germany. Yeah. If Germany continue to grow 80% in the normal, traditional services, we want to add on the top our value service. Yeah. Okay. Clear. Thank you. Mr. Cozzi, there are no more question registered at this time. Okay. Thanks all for the joining this conference. We'll see for the next result presentation, with the 2nd August for the first half, in the case of extraordinary news and not really clearly. Okay, thanks. Bye-bye.