Thanks. Good afternoon, everybody, and thanks for joining this conference call.

[music playing] Okay, sorry. Good afternoon, and thanks for joining this conference call.

This morning, the Board of Directors of WIIT approved the results of Q1 2026. You can follow with the presentation I sent, and at the end of the presentation, there is a Q&A session where you can...

...million. The most important for us is the recurring part of the revenue was €34.4 million, plus 1%, and there is 90.9% of the total revenue, that means for us high visibility and predictability in term of revenue.

Thanks to the scalability of the business, the EBITDA growth more proportion of the revenue. EBITDA was €17.2 million, EBITDA plus 9%, compared at €15.8 million previous year.

EBITDA margin was 41.6%, compared 38%, plus 320 basis points in one year. In this year, we don't have an M&A effect, it's pure organically.

EBIT, consequence, growth faster, €9.4 million, 21% of the revenue, compared €7.8 million, and the margin was 22.7%, compared 18.9%. Big incremental in term of profitability thanks to the economies of scale and the utilization of our assets.

Net profit remain stable, €4.1 million, mainly impacted from more interest expense related to the bond issued last year. Net debt adjusted is €137 million, compared €136 million.

In the adjusted net debt, there is the market value of the treasury share at the end of March '26, and there is not including the IFRS 16 effect for the leases. Go to the page four, breakdown in term of countries.

Italy performing very, very well. Growth in term of revenue, €15.4 million, and in term of EBITDA, mainly recurring, €14.4 million recurring, and the EBITDA was €8.4 million, 54.2% of the revenue, compared 48.9%.

EBIT in Italy very impressively growth, €4.2 million, 27% of the revenue, compared 18.8%. Germany, we know in Germany we have one transition year, let me say, for the effect of the churn we noticed in the market last year, but we fully compensate the churn with the new booking.

The revenue remains stable. ARR was €16.6 million, and 94% of the revenue excluded the GECKO, the consulting company.

EBITDA stable, €8.1 million, 37% of EBITDA margin, little higher compared last year, despite we have the churn during the period. EBIT was in line with last year, €4.9 million, 22.8% of EBIT margin.

Switzerland, this is a good news. The turnaround is at hand, and we start to see a little more in green way the performance of the company.

Naturally, we suffer a little bit in size, but despite the size, the performing started to be more profitable. Revenue is stable.

Revenue recurring was €3.4 million, in line with last year. EBITDA was €700,000, 18% EBITDA margin.

I need to remember that when we bought this company, it was a turnaround with a negative EBITDA. The first year, we achieved just the break-even point in term of EBITDA.

Now we are entering in the second year inside of the group, and the EBITDA is improved a lot. 18%, starting from zero, from our point of view, is a very, very good result.

EBIT, the same recovery, is 7% of the revenue. That means totally, at group level, we achieved €41.4 million revenue, €34 million recurring revenue, 90% of the total revenue.

EBITDA was €17.2 million, 41.6% EBITDA margin, and €9.4 million EBIT, 22.7%. In our view, the EBIT margin will be improve again in the next following quarters, thanks to the economies of scale and the reduction of the amortizing.

For the less CapEx, I jump now to the breakdown. I can go directly to the EBITDA, page number six.

Here you can show Italy and Germany and Swiss, what I anticipate. Germany was stable in term of EBITDA profitable, €8.1 million.

Big improve in Italy, from €7 million to €8.4 million, thanks to the efficiency inside the group, consolidation, centralization of the services, and reduction of the amortizing. Go to the EBIT margin, the page number seven.

EBIT is stable in Germany, €5 million, €4.9 million, is very, very few difference in term of EBIT, but strong, strong improvement in Italy, from €2.7 million to €4.1 million, from 18% to 27%. Our target is in the mid-term target to achieve 29% of EBIT margin, and Italy is just in the correct way.

Now we are working in Germany to recover the EBIT margin, but we are sure in the correct way to achieve this target. CapEx, page number eight.

It's not make sense to analyze a single quarter because we did CapEx depend not all the quarters we have the same CapEx. In this case, we have less CapEx compared to last year.

We spend totally €7.5 million. €4.2 million was cash CapEx, €2.1 million maintenance and €2.1 million was growth CapEx.

It's correct. Okay.

In general, we confirm that we estimate at the end of this year to spend €24 million, €25 million of totally cash CapEx. We remain in line with the guidance.

Bridge of net debt, page nine, mainly impacted of the treasury share buyback. In the first quarter, we were aggressive in term of buyback.

We bought roughly €19 million of shares because the price was low, and was a good deal for the company to make this buyback during the first quarter. Currently, the company own roughly 12% of their own share, and this was our target declared last year.

In general, cash flow was strongly. EBITDA €17 million, cash CapEx €4 million, interest expense a little higher for the interest of new bond, and this is the point.

Net debt, page number 10, the leverage remain strategic for WIIT. In this chart, you can see that net leverage at the end of March was 2.3 times, and there is totally low if you analyze our covenant ring in our bond.

We have four times this ratio to maintain, and currently we stay 2.3. We have cash, and we have more capacity in term of leverage to finance M&A.

M&A come back now very, very important. We are in two dossiers in the same time, in open due diligence.

Now we are working to expand our perimeter. The main zone we are looking are naturally DACH zone, Germany, where we are one target, sizable target, let me say.

We are started to talk to open a new country with a small deal. Currently, the company is very, very committed to find a target to buy in the next quarters.

That's it. We are ready for the Q&A.

Thanks.

Hi, good afternoon, and thanks for taking my question. It's regarding the firepower for M&A.

You said in your recent interview that you have €300 million firepower for M&A, I was wondering if you have a specific timeline given that you have this two dossier under due diligence, one in the DACH zone and the other one in a new country. The second one is how should the CapEx guidance change in the event of the sale and leaseback in Germany for your German non-premium data center, if you have any potential impact on your, let's say, free cash flow and P&L, and also your CapEx guidance?

Okay. In my interview, I said €300 million because in this value, we include, I suppose, to raise €100 million, €150 million from the sales and leaseback of the data center.

The project is going. We are send the teaser, preliminary teaser at the potential bidder.

We complete due diligence end of May, and we expect to receive formally the first offering in June, and we will decide in June if we go or not for this deal. Timing for M&A, probably the German one is more fast, I think one quarter.

The due diligence is not so easy because the company is not small. It's not only in Germany.

They have branch in US, very small branch for the US, but mainly in Germany, and that means more time to do the due diligence, technical overview, customer side, and I think we need two, three months to complete diligence. After that, we can decide if we go or not.

In the same time, we have another small opportunity. Timeline is always summer.

I think end of summer we can decide if we go or no is the time. In term of CapEx for sale and leaseback, IFRS 16 means we put in the CapEx naturally the whole contract of the lease.

In case of sale and leaseback, for example, I assume €150 million, we put in our CapEx €150 million, and we receive the same amount of cash. It's neutral on the leverage of the company, but naturally, in our balance sheet is a CapEx.

Because we put the 10 years contract lease in our debt and like assets.

Thank you, Alessandro.

Hello, can you hear me?

Yes, yes.

I was wondering if you can give a bit more flavor on what meaningful means for the acquisition in terms of revenues, what kind of revenues should we be talking about, and whether the profitability of the target company is more or less in line with that of WIIT. If you can possibly maybe explain in greater details how come the EBIT of Italy grew so fast in over one year, if there's a specific thing, or is like you said the target remains 29% despite the jump in only one year?

Thank you.

Okay. I start to give you more flavor about the M&A.

The target we are analyzing is in the range of revenue €23 million, €25 million term of revenue, and €12 million term of EBITDA. This is the size.

Okay? It's mainly data center business with infrastructure.

I can't disclose, naturally, a lot of things, but in general, they have two data center in Europe. One is naturally part of the synergy, it's in Frankfurt, and we want to increase and migrate in our campus Düsseldorf.

The other one is in a very, very interesting city with very, very cheap cost of energy. I can't say other.

Okay? It's interesting for the cost of energy.

Italy, I think Italy can achieve this EBIT more because the asset we have in Italy is 50%—the occupation rate is 50%. That means the organic growth is accelerating because thanks to the Broadcom effect, we have a commercial pipeline very, very high at the moment in Italy, and I expect in Germany in future the same.

Currently in Italy, the pipeline is very, very important because a lot of ex-partners Broadcom are forced to migrate. That means we can increase the utilization rate of data center without do expansion CapEx, and the EBIT margin could easily achieve 29%, from 27% to 29% in Italy.

In Germany, is different, naturally. We started from 22%, and the increase of EBIT in Germany will be directly impacted on the more high-value services we will sell on the customer base.

In Germany, 30% of the business premium, 70% is more traditional. We are changing the mix, but we need time.

It's not one quarter effect, we need 18 months to change the mix of the revenue, but our target is to achieve the same level of EBIT in Germany changing the mix of the revenue. In Italy, it's just in place.

Thank you.

Good afternoon. First, I would like to thank you for the presentation because it's becoming richer and clearer quarter after quarter, so much easier to follow your trajectory.

I have a follow-up on the commercial pipeline that you were commenting, I'm trying to understand how much is driven by the Broadcom opportunity and how much is, let's say, the underlying, the existing performance. If you can remind me the churn impact in Germany in Q1 and how much do you expect for the rest of the year, just to try to extrapolate the underlying organic performance net of the churn that you were mentioning in the previous calls?

In Italy, currently, the pipeline is increasing faster for the Broadcom effect. Let me say, the normal pipeline is in line with last year in term of value, but on the top, we have a important amount.

What I anticipate, I need two, three months to sign the first contract to understand how is really signable or not. It's mainly in the indirect channel because it's related to ex-provider Broadcom, it's not direct sales.

It's ex-carrier, small providers, it's more business for indirect channel. Is important amount.

Is consider that if I analyze the total pipeline, the Broadcom effect is 70% more of the normal pipeline, on top of our normal pipeline. It's three times now the pipeline.

Okay. The effect of the churn.

Allora, the normal churn, if I exclude the extraordinary churn of last year, was lower than last year, in Germany too, the same. We have low churn in Q1, normal.

We have naturally the full effect this year of the churn of last year. The impact in Germany is €3.8 million economic effect.

How much, sorry?

€3.8 million full year. That means €900,000 per quarter.

In 2026, you mean?

Yes, yes, yes. Yes.

If you see the Q1, the revenue was stable, that means we fully compensate the effect of the churn with the new booking.

It will last until the end of the year, we have to assume something like almost €1 million per quarter. Okay.

Esatto. Esatto.

It's roughly €1 million revenue per quarter. Esatto.

Esatto. The good news is that this effect was only for two clients effect of M&A.

We don't see additional churn. The churn, the residual is totally in line with the historical value of the company.

We have, for example, for the full year, group level, €2.5 million yearly churn, and we are inside this value. Italy, Germany, Swiss, group level.

It's very, very low. Consider €140 million of revenue, €2 million is 1.2%.

It's very, very low, the churn.

Just a clarification. The pipe, excluding Broadcom, that is, okay, a particular booster today, you are saying that Italy, even excluding Broadcom, is running similar to last year,

you have seen a resilient

performance on the pipeline, commercial pipeline?

Yes, it's correct. If you see, the organic growth in Italy was 7.8% Q1, and we expect to growth 10%, 11% yearly.

Esatto. Excluding the effect of Broadcom.

That will probably affect more 2027.

Yes, we have more visibility in July, and we can update our model when we have the first contract from Broadcom effect in July, we can update the 2027. Because in any case, this Broadcom effect is not impacted the figures 2026.

The time for migration project.

Okay. Thank you.

Hi, Alessandro, thanks for the presentation. Just a follow-up on Broadcom from my side.

I was wondering for how long do you expect that the Broadcom boost should last, and should we expect these contracts to carry margins in line with the group average, or could they initially require higher onboarding costs?

The effect will be in the next 18 months because all the contracts on the ex-partner of Broadcom expired by June 2027. That means in the next three, four quarters, the partner need to decide where migrate the infrastructure.

The effect is for us next 12, 18 months. Acceleration in term of booking, and revenue always postponed six months.

That means 2027, 2028 mainly for our positive effect we see. The pricing, sure, is a little lower than the premium, because the partner need to have a little margin.

In any case, it's not below 40%. We expect to maintain a profitability around 40% for this business, but not less.

Because the economies of scale is higher. There is less services because the partner manage sell and the client use the services, but from infrastructure perspective, we have good leverage on storage, backups, software, data center.

This is a very, very high economies of scale. I expect a little lower compared our premium cloud, but not so lower, 40%, 42%.

Thank you, Alessandro.

Thank you, everybody, for the conference, for the joining, and see you soon for the next presentation. Thanks.

Good afternoon. Bye-bye.