Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the WIIT SpA Nine Month 2025 Results Presentation. 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 assign 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, sir. Good afternoon, everybody, and thanks for joining the call. This morning, the board of directors of WIIT approved the results for the first nine months. We have a presentation to send. With me there is Stefano Pasotto, our CFO. After the presentation, there is a possibility to make questions in a Q&A session. We start with the highlights of the presentation, page number three. The company reported revenue + 9% compared to last year, EUR 125 million revenue. The most important is the current revenue growth, 11.6%, EUR 102 million compared to EUR 91.7 million in the previous year. In that consequence, EBIT growth more fast, 19.5% to EUR 50.9 million compared to EUR 42.6 million in the first nine months 2024. The EBITDA margin adjusted was 40.5%, but the like-for-like margin without the contribution of the acquisition or acquiring company was 43.2%. EBIT adjusted growth 17.1%, EUR 26.4 million compared to EUR 22.5 million in the first nine 2024. EBIT margin was 21%, very, very good. Like-for-like, 21.8%. Net profit in consequence growth 15.9%, EUR 14.1 million compared to EUR 12.2 million. About that, we close with EUR 163.9 million adjusted. In our adjustment, we excluded the IFRS 16 part of the lease and included the market value of the treasury share at the end of September. Last year, we closed with the same value, EUR 163 million. We can jump to slide number four. We have the breakdown of the results. Naturally, Germany remained the main market for the WIIT group. Italy is performing well, is 34% of group revenue. Germany continued to stay over the half of the group revenue, 53%. Switzerland is stable, 12%. If we assume that if we analyze the EBITDA margin, we are very happy for the Italian results. We continue to perform well, 54% and 55% of the group EBITDA level. Germany remained solid, 37.7% of EBITDA margin. Switzerland, I need to consider that I need to remember that the acquisition of Switzerland was a turnaround situation. We are happy for the results because after one year, we just achieved a positive EBITDA margin and, most important, positive EBIT margin for the Swiss company. EBIT level, Italy performed very, very well, 22%. Germany, 24%. In these figures, we had to consider the positive effect of the no payment of the year-end account in Q2. Switzerland arrived to achieve a turnaround in terms of EBIT margin, 3%. We can directly go to page five, revenue. Particularly important to consider to analyze, the current revenue is EUR 102 million. It's + 11% compared to last year. Organic was 4.9%, but was 10% excluding HR. Italy was EUR 40 million, the current, and is 91% of the total revenue compared to 83% last year. Organic growth was 7.5%, 12.8% excluding HR. Germany, 51.6%, 94% of the total revenue. Naturally, registering a growth of 9.1%, and the organic was 2.7% compared to last year, 9% excluding HR. In the German figures, we just have the first impact of this extra HR that we said during the conference of the Q2. For this reason, it is very, very good results because in terms of sales in Germany, we record highest value of booking compared to last year. Consider that the gross book in Germany at the end of September is 30% higher than the whole year 2024. Germany is very accelerating in terms of gross sales. Switzerland is stable. It is 64% of the total revenue. We do not have growth in terms of revenue. We can go directly to analyze the profitability. The chart page number six, EBITDA, EUR 50.9 million with a margin of 40%, 43% like-for-like compared to 37% nine months and 36%. Very, very acceleration in terms of profitability. It's driven thanks to the synergy. We obtain synergy in terms of cost in Germany and Italy and increasing high-value services sold in Germany and continue to continue the performance well in premium services in Italy. The breakdown of this EBITDA is from what is impressive because Italy is performing 54% compared to 46%, increasing 800 basis points compared to last year. Germany, the same, 37% EBITDA margin compared to 35%. Like-for-like excluding the consulting company was 42.9% compared to 37.3%. That means 560 basis points higher than the previous year. Thanks to cost synergy and focusing to focus the company on the high-value services. In Germany, it's not important that we record a record of gross sales, but it's the quality of the sales. We are turning from more traditional cloud services to high-value services. This is in terms of the quality of the earnings, is the consequence of this change of the sales. Page seven, EBIT, EBIT growth 17%, EUR 26 million. In this case, we have a very good effect, particularly in Italy, when we growth from EUR 20 million to EUR 22.6 million, mainly for the increasing of the occupation rate of our data center. I want to remember that in Italy, the occupation rate is roughly 40%. In Germany, we are roughly 80%. That means the increasing revenue in Italy, we don't need to do CAPEX to expand our data center. In the next two years, what we forecast is a strong increase of EBIT margin for the increase of the occupation rate of our assets. In Germany, 24% is just a very high level and compared to 23% last year. The profit, in consequence, we go up to EUR 14 million. At this level, we are totally in line with the market expectation for the end of this year. The debt, page eight, the gross debt was EUR 218 million. In this value, we now consider EUR 39.8 million of market value of treasury share and IFRS 16 impact for lease of the office and data center for EUR 14 million. Operating results was very strong. Cash generation was EUR 31 million. After, we have EUR 2 million of purchase of treasury shares. CAPEX was EUR 25 million. This was important. I want to make more color about that. The cash CAPEX are going down compared to last year because at the end of September was EUR 17 million, the cash CAPEX. We forecast to close the whole year below EUR 24-25 million, in the area EUR 24-25 million, below the value of last year. EUR 8.2 million is related to the rental fees, colocation, and vehicle scars. Dividend pay in May, EUR 7.8 million. Secure deposit for the new building, a new headquarter we opened in April in Milan, EUR 1 million. EUR 1.1 million was a one-time and one-shot for the reorganization of the people mainly in Germany. Okay. That's it. We are ready to do a Q&A session. Excuse me, this is Chorus Call conference operator. We will now begin the question-answer session. Anyone who wishes to ask a question may press star and one on the 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 questions may press star and one at this time. The first question is from Giorgio Tavolini of Intermonte. Please go ahead. Good evening, and thanks for taking my questions. The first one is on the impact on financing costs from the recent bond issuance, if you can provide more color on next year's financial expenses. The second one is on the German market. If I remember correctly, next year, there should be EUR 4-6 million CapEx for the new data center with AI, powered with AI. I was wondering if the depreciation amortization in the German market are expected to rise on top of that. The third question is on the Italian performance. I saw there is a difference between organic growth, excluding the churn, and organic growth. I was wondering if you are experiencing some churn as in Germany. What is behind this churn? Thank you. Okay. I start to answer about the first question about the interest we pay for the new bond. Consider that, naturally, the coupon of the new bond is increased compared to the last one, but we have a positive impact of carry because we know that we do not anticipate any more of the old bond. We have a half point of carry in EUR 150 million of bond for one year. That means we expect to close to we forecast to have next year roughly from EUR 10 million to EUR 11 million of interest. This is naturally low because we closed the end of September with EUR 6.8 million. 6.5. 6.5 million interest. For the Q4, naturally, we force to have a little more interest on new bond, but it is not material. Probably we close in any case below EUR 9 million. This is more or less EUR 9 million total expense. Next year, we forecast 11 and go down to 10 to 2027. In about the second question, AI in our budget is correct. We forecast roughly EUR 5 million from the AI, but we are waiting to understand in deep how is strong the contribution from the government in Germany because end of December, probably there is formal the law in Germany and we have a detail about how much is the contribution from the state. In case is high, it is strongly, we want to increase this CAPEX. This CAPEX and the amortizing is just included in our amortizing because the excess we discover by the contribution from the government in case. In merit of churn, the churn is totally in line with the last three years. Consider that it's very low because it's EUR 2 million in Italy and the same in Germany. Only in Germany, we have one specific big churn coming for M&A because one big bank acquired a bank, our client. This big churn is at the moment fully recovered with the new booking. Fortunately, in Germany, we had a very, very strong new booking. Currently, we cover totally the value of the churn. For this reason, we expect to stay stable for next year in terms of revenue despite this big extraordinary churn. It is a churn related to M&A. It's not churn for client to leave the company for quality or competition. It's only a specific M&A. In Italy, it's very, very low, the churn rate. And 50% of the churn coming from the indirect channel when we have a lot of small clients below our partner. Usually, in this channel, the churn rate is a bit higher. In the core business, it remains very, very, very low level churn. Thank you. As a reminder, if you wish to register for a question, please press star and one on your telephone. For any further question, please press star and one on your telephone. The next question is from Marco Vitale of Mediobanca. Please go ahead. Afternoon. Thank you for the presentation. A very quick follow-up on the successful debt refinancing. We noted that you have increased the amount to be borrowed. If you could comment what is the rationale here, I believe higher cash proceeds to finance M&A, but if you could spend a few words on this. Thank you. Consider the reason naturally is refinance the old bond. The maturity of the old bond was October 2026. We go on the market in advance naturally to avoid to be close to the maturity of the bond. EUR 150 million is naturally to refinance, to repay the bond at maturity date. The excess EUR 65 million is plus the basket we have treasury share is roughly EUR 100 million. It's power we have to finance M&A and investment in terms of data center we need in the future. Mainly M&A, we are naturally very, very active in Germany. We are looking for regional provider and we want to continue the consolidation of the market in that zone. Mainly it's to refinance naturally the old bond outstanding. Clear. I was referring to the excess refinancing and excess of the old bond. That's very clear. Thank you. The next question is from Michele Mombelli of TPCAP. Please go ahead. Hello everybody and congratulations for the results and also for your advertise, your commercial on Sky you can do it better. I liked it. I wanted to ask something regarding the pipeline in the Italian market because over there you have capacity, right? You have more capacity there than in Germany. I want to know how is going your backlog there, your pipeline there, so that maybe we're going to see other new revenues with fixed costs. That's the first question. The second one maybe is how much is influencing the domain and the theme of data sovereignty with your new contracts in Germany because you mentioned Germany is accelerating a lot. I would like to know what's the driver behind that. We saw the partnership between Deutsche Telekom and Nvidia. Maybe any kind of read across from companies over there. Thank you. Okay. It's correct. Probably the same thing in Italy is a growing market for us. The organic growth in Italy is at the moment double digit. We forecast to remain the same level next year. Consider that in Germany, our feel is the client is more in advance to change something infrastructure from the hyperscale to the private for data sovereign. And not only for this, but to have more predictable cost. In Italy, to be honest, we are a little slow in the feedback from the client. There is a sure sentiment, growing sentiment about sovereign. In Germany, we see more activity, client insight. The deal we closed in June in Germany is EUR 10 million deal specifically with this client. It's exactly this direction. The client decided to leave Amazon. It's a big client that they have in Germany. They decided to move from the public hyperscale to the private environment mainly for the data sovereignty. We are seeing a changement in the market, to be honest, not so fast in Italy, more in Germany. In general, in Italy, we are growing fast because the brand we have, the brand awareness in Italy is very, very strong. We continue to sign new logo coming from exactly events like marketing. We have seen last year three or four new logos coming directly from marketing activity events we did in Italy in the last 18 months, like Luna Rossa, Sport. In Italy, the brand awareness is higher. Now we are working to reinforce the brand awareness in Germany. For this reason, the spot you saw in Italy and the new spot in Sky, we want to replicate the same spot in Germany. In the next quarters, we are now not introducing the German language, and we want to start to push, increase the brand awareness in Germany. Can I follow up? I mean, thanks a lot for the answer. I just wanted to follow up. Basically, you're going to foresee maybe a little bit more of higher marketing expenses, or let's put it this way, expenses and investments in Germany in the next month. That's the first question as a follow-up. The second is related a little bit more of clarity regarding the AI-powered data center. Do you think that if you're not going to enter in that space, you're going to lag behind any kind of competitor in that space? No, we are entering the space. Part of our investment in Germany next year will be exactly data center with specific characteristics, high density for GPUs. Probably 70% of our new data center we are building in Germany is projected exactly for GPUs. Because we see the demand for GPUs, we just have the first client. The normal data center characteristics is not able to host the high consumption of GPUs. For this reason, we want to build one data center specific for GPUs. Naturally, it is not EUR 1 billion investment by Google or Q-SYS. We start with probably the investment based on our capacity, but we are entering in this segment, sure. We see value to be a provider, a repair provider with local data, partly for AI. The problem with AI is where your information goes. If you use the hyperscale AI, your information is you can control what is your data, your privacy. For this reason, we see a very, very strong opportunity to be in this segment. Cost market is increasing, sure. Currently, it's 2%. Probably in next two years, we force to go to 3-3.5% of the revenue. Currently, sorry, for the recurring revenue. Currently, we are roughly in area 2% of the recurring revenue. We will go to 3% in next two years to increase the marketing activity in Germany. Perfect. Thanks a lot. For any further question, please press star and one on your telephone. Management, there are no more questions registered at this time. Okay. That is all the initial questions. So thanks all to join in this conference and see you soon for the next conference for the full results. Thank you. Goodbye. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.