Good afternoon, and thanks everybody to join this conference call. The Board of Directors of WIIT approved the results of H1 2026.

You can follow the presentation I sent before, and after then the presentation, there is the possibility to have a Q&A session. I start with the highlights, the slide number 3, page number 2.

The revenue was €81.8 million, is a decrease 4% compared last year, but only 1.8% with the same comparison, because last year we have €2 million of one-time effect in the H1. This €2 million of revenue one-time impacts all the figures, naturally, in the comparable basis.

Our ARR, important, decreased roughly 1%, is 91.8% of the total revenue, increasing a lot compared to last year. EBITDA was €34.2 million, decreased 1.5% compared to reported figures, but increase 4.5% if you exclude the una tantum effect of last year.

EBITDA margin was 41.8%. EBIT, the same, is roughly stable, flat, 18.4% reported, but is plus 11.7% if you excluded the one-off of the previous year.

Net profit was €7.9 million compared €10 million. Comparable was €8 million.

We have in this figures of net profit more interest expense for over €2 million. Net debt decrease a lot, was €173.6 million, but you consider that in our general assembly we cancel 6% of treasury shares.

Like-for-like was €115 million, decrease a lot.

I'm connected?

Yes, now you are connected.

Okay. I'm sorry, I lost the line here.

Page number 3, the breakdown of the--

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, and me, Stefano Pazzotto, the CFO, and Enrico Rampin, the Chief Commercial Officer, will be available for the Q&A session after the presentation. If in the meantime Alessandro Cozzi will be able to rejoin us, he'll be continue on the presentation.

We just commented the slide 3, we can go on slide sorry, the slide 2, we can go on slide 3. We have the key figures by country.

We have €30.3 million adjusted revenues in Italy, representing 37.1% of group revenues. Germany was €43.3 million, representing 52.9% of the group revenues.

Switzerland, €8.2 million, representing 10%. The ARR growth in Italy was important, reaching 91.2% of the total revenues.

In Germany, still very high, 91 95.1%. In Switzerland is 80.4%.

As Alessandro said, we register 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 €2 million one-time that we registered in the first half 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 5 percentage point from 22.1% to 27.3%.

In Germany was pretty much stable, and in Switzerland is improving, in line with improvement that we had at EBITDA level. Going more in detail on the ARR revenues, recurring revenues, we increase by 0.8%.

The track record of Italy continued in the second quarter as well, reaching a plus 6.8% in the first half. Germany was still impacted, with a recovery in the second quarter, of churn rate and extraordinary churn that we that occurred in 2025 of €7 million, and the biggest part of this churn 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 AG that is increasing from last year from 38.8%, excluding the one-time €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 first half numbers that is the base that confirm the scalability of our business model.

We had we register 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 give us the opportunity to double our revenues without any investment, 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, and the good point is that we reduce the CapEx. It's clear that we have a higher interest rate.

Alessandro, are you there?

Yes, I'm here. I'm sorry about the line was very, very bad.

Only one comment about the CapEx. Yes, the reason why the CapEx goes down is we end the migration of some data center in Germany.

That means we cut maintenance CapEx to maintain active some data center. We continue invest in security and in growth CapEx, but the maintenance CapEx goes down, reason is we switch off three data centers currently in Germany, because the migration is end.

Okay.

Okay. Do you want to comment the last one regarding the leverage?

The leverage is the net leverage the slide 10. The leverage was 2.9x about the reciprocal bond, because after the cancellation of the treasury shares, naturally, the net debt will increase a little bit.

If you consider the full amount of treasury share, then the net debt was 2.4x. We go up to 2.9x because we cancel 6% of treasury shares.

The covenants are bound is 4x, and we stay below 3x. This is the trigger, the level we want to maintain in future, because we like to stay below that.

Below 3x is our target. We are inside this parameter, whatever the cancellation of treasury shares.

Consider that CapEx is decreasing, and EBITDA is increasing. That means the free cash flow is increasing a lot compared last year.

Because last year the CapEx was higher, and we have a lot of treasury shares in the pocket. With this we cancel 6%, and naturally, the net debt is increasing mainly for the cancellation of the treasury shares.

I think that we are ready for the Q&A.

good evening, and thanks for taking my questions. The first one is on full-year expectations after these first-half results.

I don't know if is it still fair to assume the current consensus estimates good for this year, €175 million sales and €72 million for EBITDA? The second question is, if you can give us an update on sale-and-leaseback initiatives of non-premium data center in Germany?

The very last one is on a general comment on Broadcom developments after recent requests 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, thanks, Giorgio. We confirm the market consensus for the full year because, usually, H2 is higher results than H1.

Only last year we have exactly the opposite results for these €2 million una tantum effects in Q2, but usually the company is increasing every quarter the ARR and consequently the profitable. We expect to achieve these figures in this area.

Thanks to the contracts signed in the first half, and we have more revenue in the Q4. Update about sale-and-leaseback.

Consider that we are in the preliminary phase. We received preliminary offer, is non-binding.

We expect to enter in the more, diciamo, final phase, binding offer, early September. We receive a lot of interest from bidder, and we expect to receive the formal binding offer in September.

Preliminary offer was just arrived, but we want to enter in the second phase after the vacation period in September. About Broadcom, this is very interesting, because in Italy we are working a lot, and we are started to negotiate contract with many providers outside of the Broadcom program.

In Germany we are a little deferred, delayed, probably for the reason is the antitrust--

I'm sorry, but I am in Spain, and the line here is not well as like in Italy. I'm sorry, I don't know why sometimes the line go down.

Okay. For Broadcom, we expect very, 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, very advanced negotiation.

In Germany we are a little in delay about the topics, but we have more opportunity in M&A. It's a different view.

In Italy, we are more in advance in the sales operation to migrate ex-providers. In Germany, in 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, the big provider in Italy. We are start training the sales force 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 in the next two quarters.

That means we expect more organic growth next 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.

I think--

Thank you, Alessandro.

Thanks.

Good afternoon. A few question.

First, on the commercial negotiation, the pipeline, apart from the topic related to the Broadcom migration, like to understand how do you see the market in Italy, Germany, and Switzerland if you want also. If you want to elaborate a little bit more also on the M&A opportunities, on the pipeline for M&A at the moment.

Then last, you were mentioning so the €7 million churn impact in Germany for the churn of the clients, 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. Allora, comments about the negotiation on Broadcom.

Probably we anticipate we have some deal in coming in next quarters, ex-partners, and not only from Broadcom, but honestly we have two deal sizable coming from hyperscaler: one in Switzerland, we are very happy for that, and probably they go the board to make final decision in the next two weeks; and two in Italy. Organic growth coming not only for the Broadcom consideration, but a new opportunity for us is to host some client coming from hyperscaler 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 €5 to €7 million, enterprise value from €10 to €15 million, but it's important for us because after they achieve the breaking point in Switzerland, it's important for us increase the size of Switzerland to give us a possibility to come back to 40% EBITDA margin.

Currently we are 20%, we need more size to recovering the profitable, and with M&A, we can accelerate the process. The first question about the big churn in Germany.

We noticed that last year, it's €7 million yearly, two main client, is one big bank. The impact in terms of EBITDA of revenue and EBITDA is roughly €4 million for this year, that means €2 million in the H1 and €2 million is in the second half of '26.

For this I'm totally happy for the results, because EBITDA, if you consider the EBITDA without the €2 million una tantum last year, is increasing despite we had this €2 million of less revenue. That means the efficiency of operation compensate, not totally, but very, very highly, a large part of the churn of the extraordinary churn we have in Germany.

The normal churn is very, very low. In Italy, continue to see low churn rate.

In Germany, the standard churn is below 2%. We have only to clean this €7 million, and €4 million is '26, and additional €2.5 million 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, 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. It is a mix of sovereignty, it's a mix, of course, the cost reduction, it's 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.

These are all deals that are over million ARR, they are all relevant deals and for Italy, for Switzerland, and for Germany as well.

Thank you.

It is important our opportunity is upselling in one of our main clients in Italy. It's not the opportunity for a new client, but it's really upselling, that means the decision could be faster than in opportunity when you have new logo to enter new client, new relation.

It's upselling, it's important. Decision could be the next two quarters.

Yes.

Thanks everybody for the conference, and see you soon for the next quarter results. Thank you, and have a nice day.

Thank you.