Good afternoon. This is the Carlsquare conference operator. Welcome, and thank you for joining the WIIT first half 2026 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, you may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Alessandro Cozzi, CEO of WIIT. Please go ahead, sir. Good afternoon. Thanks everybody for joining this conference call. The board of directors WIIT approves the results of H1 2026. You can follow the presentation I sent before. After the presentation, there is a possibility to have a Q&A session. I start with the highlights, the page number three, page number two. Our revenue was EUR 81.8 million, decreased 4% compared to last year, but only 1.8% with the same comparison, because last year we have EUR 2 million of one-time effect in the H1. The EUR 2 million of revenue one time impacts all the figures naturally in the comparable basis. ARR, important, increased 1%. It is 91.8% of the total revenue, increasing a lot compared to last year. EBITDA was EUR 34.2 million, decreased 1.5% compared to reported figures, but increased 4.5% if you exclude the one-time effect of last year. EBITDA margin was 41.8%. EBIT, the same, is roughly stable flat 18.4% reported, but it is +11.7% if you excluded the one-off of the previous year. Net profit was EUR 7.9 million, compared to EUR 10 million, comparable was EUR 8 million. We have these figures of net profit more interest expense for over EUR 2 million. Net debt decreased a lot, was EUR 173.6 million, but you consider that in our general assembly, we cancel 6% of the shares. Like-for-like was EUR 115 million. Ladies and gentlemen. I'm connected then? Yes, please go ahead. Yes, now you are connected. Okay. Yeah. Okay, thank you. I'm sorry. We have one line here. Page number three, the breakdown of the team. Please, ladies and gentlemen, please hold the line. The conference will resume shortly. Thank you. Ladies and gentlemen, please hold the line. The conference will resume shortly. Thank you for your patience. Ladies and gentlemen, please hold the line. The conference will resume shortly. Thank you. Please go ahead, madam. Hello, good afternoon. I'm Francesca Cocco, the Investor Relations Manager of the company. The CEO has a problem with his line, I continue with the presentation. Me, Stefano Pasotto, the CFO, and Enrico Rampin, the Chief Commercial Officer, will be available for the Q&A session after the presentation. In the meantime, if Alessandro Cozzi would be able to rejoin us, he will continue on the presentation. We just commented the slide two, we can go on slide three. We have the key figures by country. We have EUR 30.3 million adjusted revenues in Italy, representing 37.1% of the group revenues. Germany was EUR 43.3 million, representing 52.9% of the group revenues, and Switzerland, EUR 8.2 million representing 10%. The ARR growth in Italy was important, reaching 91.2% of the total revenues. In Germany, still very high, 95.1%, and in Switzerland is 80.4%. As Alessandro said, we registered 4.5% EBITDA growth. We have an improvement of adjusted EBITDA margin for Italy at 54.8%. Germany was improving at 36.9% compared to the comparable margin of 36.5%, excluding the EUR 2 million one-time that we registered in the first half of 2025. The very good positive point is the improvement of margin in Switzerland that is reaching 19.7% from 13.3% in H1 2025. The same for EBIT. The EBIT in Italy was improving a lot by more than five percentage points from 22.1%-27.3%. In Germany, it was pretty much stable, and in Switzerland is improving in line with improvement that we had at the EBITDA level. Going more in detail on the ARR revenues, the recurring revenues, we increased by 0.8%. The track record of Italy continuing in the second quarter as well, reaching the +6.8% in the first half. Germany was still impacted with a recovery in the second quarter of term rate and extraordinary term that occurred in 2025 of EUR 7 million. The biggest part of this term is and will be accounted in 2026. Switzerland was pretty much in line with the previous year, but with a strong improvement on margin as we said before. Going on the EBITDA, we already commented the biggest part of the margin and EBITDA growth. It's important to highlight the EBITDA margin of WIIT Germany that is increasing from last year from 38.8%, excluding the one-time EUR 2 million, to 39.2%. The EBITDA improvement at all level is the result of the focus on cloud services, optimization and reorganization of processes and operational services, the cost synergies that we reach, and the continuous improvement in margins of the acquired company, as we have seen in Switzerland in the first half. At EBIT level, we had an important improvement of the margin that was increasing from 19.8% to 22.5%. Biggest part coming from Italy, as we said before, at 27.3% from 22.1%. Going to CapEx, this is another very good point of our first half numbers. That is the base that confirms the scalability of our business model. We registered a reduction in cash CapEx and right of use if we compare first half 2026 to first half 2025. A good point, as we already said, that the utilization rate of the premium cloud data center is around 51% in Italy and 53% in Germany. This gives us the opportunity to double our revenues without any investment or extra investment in CapEx. We still confirm that the growth CapEx represent more or less 20% of the total value of the new contract. Alessandro already commented the net financial position bridge. The good point is that we reduced the CapEx. It's clear that we have a higher interest rate. Alessandro, are you there? Yes. I'm sorry, but the line is very bad. No, that's fine. Only one comment about the CapEx. Yes. Yeah. The reason why the CapEx goes down is we end the migration of something that was sent in Germany. That means we cut maintenance CapEx to maintain active something data center. We continue invest in security and in growth CapEx, the maintenance CapEx go down. The reason is we switch off three data centers we currently in Germany, because the migration is end. Okay. You want to go to the next slide? Okay. Do you want to comment the last one regarding the leverage? The leverage. The last one, leverage. The net leverage, the page number, the last one, slide 10. The leverage was 2.9 about the forecasted bond, because after the cancellation of the treasury shares, naturally, the net debt increased a little bit. If you consider the full amount of treasury share, the net debt was 2.4. We go up to 2.9 because we cancel 6% of treasury shares. The covenant bond is four times, we stay below three times. This is the trigger, the level we want to maintain in the future because we like to stay with the low debt. Below three times is our target, we are inside this parameter. Whatever the cancellation of treasury share. I consider that CapEx is decreasing and EBITDA is increasing. That means the free cash flow is increasing a lot compared last year. As you can see, the CapEx was higher, and we have a lot of treasury share in the pocket. We cancel 6% and naturally, the net debt is increasing mainly from the cancellation of the treasury shares. I think we are ready for the Q&A. 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 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 a question may press star and one at this time. The first question is from Giorgio Tavolini of Intermonte SIM. Please go ahead, sir. Good evening, and thanks for taking my questions. The first one is on full year expectations. After these first half results, I do not know if it is still fair to assume the current consensus estimate is good for this year. EUR 175 million sales and EUR 72 million for EBITDA. The second question is on any update, if you can give us an update on sell or lease-back initiatives of non-premium data center in Germany. The very last one is on a general comment on Broadcom developments after a recent request by Cloud Industry Association that have asked the European Antitrust Regulator to investigate these changes in licensing by Broadcom. They say that it basically led to price increases and a great exclusion of many providers from VMware partner ecosystem. I was wondering if you can comment on this. Thank you. Yes. Thank you, Giorgio. First of all, we confirm the market consensus for the full year because usually H2 is higher results than QH1. Only last year we have exactly the opposite results for this EUR 2 million one-time effect in Q2. Usually the company is increasing every quarter the ARR and consequently the profit bond. We expect to achieve this in this area. Thanks to the contract signed in the first half, we have more revenue in the Q4. An update about sell or lease-back. Consider that we are in the interim phase. We received the preliminary offer. It's non-binding. We expect to enter in the more final phase binding offer early September. We receive a lot of interest from bidders, and we expect to receive the formal binding offer in September. Preliminary offer was just arrived. We want to enter in the second phase after the dedication period in September. About Broadcom. This is very interesting because in Italy, we are working a lot, we are starting to negotiate contract with many providers outside of the Broadcom program. In Germany, we are a little bit deferred, delayed, probably for the reason is the antitrust Ladies and gentlemen, please hold the line. The conference will resume shortly. I'm sorry, in Spain, the line here is not well like in Italy. I'm sorry. I don't know why sometimes the line goes down. For Broadcom, we expect very good results in Italy in the next two, three quarters because we are in the advanced negotiation with the two or three providers. Probably we want to announce in the next quarters, one and the other in the end of the year. It's very advanced negotiation. In Germany, we are a little delayed about the topics, we have more opportunity in M&A. It's a different view. In Italy, we are more advanced in the sales operation to migrate ex-providers. In Germany and Switzerland, we have more opportunity for M&A. We confirm that a lot of providers still waiting for the antitrust response. For this reason, probably we need two, three quarters to accelerate In Italy, honestly, we are more in advance. Probably we can announce just in the next quarter, one big agreement. We have started training with this provider, is a big provider in Italy. We have started training the salesforce of the partner, and we are in the final phase to negotiate the contract. Probably in the next quarter, we can announce this agreement. We have additional three partners entering WIIT in the next two quarters. That means that we expect more organic growth last year in Italy than 2026. Probably double digit. In Germany, we will see in the next two quarters, but soon we have more opportunity for M&A. Okay. Thank you, Alessandro. Thanks. The next question is from Domenico Ghilotti of Equita. Please go ahead, sir. Good afternoon. A few question. First, on the commercial negotiation on the pipeline. Apart from the topic related to the Broadcom migration, I'd like to understand how do you see the market in Italy, Germany and Switzerland, if you want. If you want to elaborate a little bit more also on the M&A opportunities, on the pipeline for M&A at the moment. Last, you were mentioning, so the EUR 7 million churn impact in Germany for the churn of your clients, and mostly in 2027-- 2026, sorry. Can you help us in understanding the phasing of the contribution of this impact? How much was in the first semester, how much is remaining for the second part of the year? Okay. Comments about the Broadcom, probably, we anticipate we have something deal coming in next quarters, ex-partners. Not only from Broadcom, but honestly, we have two deal sizable coming from upper scale. One in Switzerland, we are very happy for that. Probably they go to the board to make a final decision in the next two weeks. Two in Italy. The organic growth coming not only for the Broadcom consolidation, but a new opportunity for us is to host something client coming from hyperscale. For data sovereignty reason. Switzerland is the main country where we are looking for M&A. Currently, we have two deals on the table, are two small providers. That means revenue from EUR 5 million-EUR 7 million, and the plus value from EUR 10 million-EUR 15 million. It's important for us because after they achieve the breaking point in Switzerland, it's important for us to increase the size of Switzerland to give us the possibility to come back to 40% EBITDA margin. Currently, we are 20. We need more size to recover the profitable. With M&A, we can accelerate the process. The first question about the big churn in Germany, we noticed that last year. It's EUR 7 million yearly, two main clients, is one big bank. The impact in term of our revenue EBITDA is roughly EUR 4 million for this year. That means EUR 2 million in the H1 and EUR 2 million in the second half of 2026. For this year, I'm partly happy for the results because the EBITDA, if you consider the EBITDA without the EUR 2 million account to last year, is increasing despite we have this EUR 2 million of less revenue. That means the efficiency of operation compensate, not totally, but a large part of this extraordinary churn we had in Germany. The normal churn is very, very low. In Italy, we continue to see low churn rate. In Germany, the standard churn is below 2%. We are running to clean the EUR 7 million, and EUR 4 million is at 2026 and additional two and half last year. If I may follow up on the clients coming from hyperscalers, can you elaborate on the reason why they decided to leave and to move to WIIT? Yes. If you want, Alex. Yes. Yeah. I can comment on that. Yes. Domenico, the fact is two sides. On one is the matter of the too large exposure to the hyperscaler. The largest part of these clients belong to industries where cloud native was the platform adopted in the past, and they didn't have any other option in the past out of the hyperscaler. Today, there is the option. To be honest, Germany, Italy and Switzerland are all already impacted. Italy is increasing the pipeline in that sense, and also the deal that Alessandro was mentioning in Switzerland. That is an important client that is reconsolidating and expanding the existing footprint, also including the rebalance from the hyperscaler. Is a mix of sovereignty, is a mix, of course, the cost reduction. Is a mix also of risk mitigation, because the exposure was too large, to be honest. Consider that already mentioned by Forrester, our platform has been several times benchmarked, and also in terms of economics, the result is in effect in the range of less 30%. These are the mix of effects, and these are all deals that are over million ARR. They are all relevant deals for Italy, for Switzerland, and for Germany as well. Thank you. The important opportunity is upselling in one of our main clients in Italy. Is not opportunity for a new client, but is really upselling. That means the decision could be faster than an opportunity when you have a new logo to enter, a new client, new relation. Is upselling, yeah. Is important. The decision could be in the next two quarters. Yes. As a reminder, if you wish to register for a question, please press star and one on your telephone. For any further questions, please press star and one on your telephone. Mr. Cozzi, there are no more questions registered at this time. Okay. Thanks, everybody, for the conference, and see you soon for the next quarter results. Thank you, and have a nice day. Thank you. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.