Thanks, and good afternoon, everybody, and thanks for joining the call. This morning, the Board of Directors of WIIT approved the results of full year 2025.

You can follow with the presentation I sent. I will start with the highlights, and at the end of the presentation, there is a possibility to make a Q&A.

I can jump start to the page number 3, the financial highlights. Revenue growth to €167 million, plus 5.9% compared €158 of the previous year.

The most important figures is the ARR, the recurrent part of our revenue, was €136 compared with €136 of the 2024. 88% of the revenue now is recurrent.

It is very important to have high visibility in the figures for the current year as in the next following years. EBITDA growth more proportional than the revenue for the scalability of the business, was €66.9 million, totally in line with our expectation and our budget, compared €58 million of the 2024.

It's a big jump. Consider that we don't have M&A effect.

It's all full organic and thanks to the synergy obtained in the last year. Margin was 39.8% compared 36% 2024.

Like-for-like, 40%. We increase over 3% of EBITDA margin in the last year.

EBIT, very, very good, €34 million compared €29, plus 17%. EBIT margin was 20% compared 18%.

Over 2 points more. After you can show the Q4 effect, because the EBIT is growing very fast in the last part of the year thanks to the stabilization of the CapEx and the scalability of our data center.

I can show after in another separate slide. Net profit was 16 and a half, plus 11%.

We have here a strong effect of tax rate because for the last year we have a little more tax compared to 2024, because in 2024 we had a specific una tantum effect of the Patent Box of one company acquired, and from the last year we don't have this specific una tantum. In a prudent approach, we don't account anything about the Patent Box in Italy.

Currently, we are talking with the tax office to discuss the renewal of the Patent Box, but in this figures, we don't consider nothing about tax effect. Net debt was €156 million, deleverage compared to last year and totally in line with our expectation.

Consider that we have the stronger effect of the treasury share because the company bought a lot of treasury share during the last quarter, and thanks to that, the net debt decrease a lot. In the slide, you can go to slide page number 4, the breakdown of the figures.

Italy was closed with €58.6 million revenue. ARR was very, very high, 91%.

€55 million of revenue was totally recurrent. Big jump in terms of EBITDA to €31.8 million, 54% of the revenue.

Big, big jump compared last year thanks to the scalability of the assets and the end of the reorganization of the operation happened during the full year. The same result, very, very good in terms of EBIT in Italy, grow strongly to 23%, €13.8 million, and very, very in a growing way in the last part of the year.

Germany, €89 million revenue, 68% total recurrent, 93% of the business cloud is recurrent. EBITDA stable, 36%—little, little growth, but stable, not so strongly growth—€32 million in terms of EBITDA and 19.6 in terms of EBIT.

EBIT margin was 22%. Swiss.

Swiss is show complete end of the turnaround. We complete the clean of the low-value revenue.

Closed with €20 million, and ARR was roughly €13 million, and EBITDA was positive for 2 and a half, and at the end, EBIT positive starting from a negative 11 in the previous year to 600k positive EBIT under the end of the year. Totally, group level, €136 million ARR, roughly €67 million EBITDA, and €34 million of EBIT margin.

We update, in the page number 5, the concentration of the customer base. It's important for the company continue monitoring how is the dependence we have of the single client.

We confirm that we don't have dependence of the first client. The top 20 client value is the 29% of total revenue, and the top 50 is only 43%.

Very important, the increase of the average on the deal of the WIIT. The top 200 client like top account, the yearly average of the contract now is over half million euro.

It's 521k average for client. The top 10 is increasing from €2.5 million to €3.3 million yearly revenue.

That means we are selling more premium services in a more large customer base. That means at the end more evidence of the business and very, very high barrier at the exit.

The more bigger is the deal, more low is the risk to the migration when the contract is at maturity. We are in correct way in terms of sales.

High visibility of the business. The slide page number 6, backlog is increasing from €247 million to 260.

Naturally, depend a lot the single year when you have the renew the contract. Not all the year are the same in terms of maturity of the contracts.

In general, is it growing. Starting for this quarter, we like to disclose not only the full-year results, but the single quarter effect to understand how the business going in the single quarter.

Totally, what I anticipate, Italy grew organically 7.8%. Germany is more stable is because I just anticipate we have part of the effect of one big churn we had during the summer.

The effect in terms of revenue is partially in the 2025 and mainly in 2026. It's one client.

It's not a churn related to risk, satisfaction, or competition. It's a one M&A, one bank in Germany bought another banks and start to migrate the data center in their own facilities.

It's a M&A effect. It's a una tantum.

It's extraordinary, and the churn effect is mainly in 2026. Chart number page 8, EBITDA grew in Italy very, very strongly from €27.7 million to 32, 31.8.

In Germany, despite we have partially a factor of churn, we grew a lot from €29.2 million to 32.6. If you see the Q4, in the Q4, Italy is growing €1.2 million more in terms of EBITDA, and Germany is stable because the activation of the new contract signed during the year fully compensate the effect of the churn in terms of revenue and cost.

EBIT, page number 9, this effect is more important in terms of EBIT margin, because you see later we have a fantastic effect in terms of CapEx. Cash CapEx are reducing compared the last year, and this effect you will see naturally in the EBIT margin.

In Italy, we grow from €2.6 million quarterly to €4 million, and in Germany is a little stable. That means in Italy the EBIT grew from 11 and a half million to 13.8.

In Germany, from 18 to 19.6. The fact of this CapEx reduction we see more strongly during the 2026, because we expect to have less amortizing for roughly 1 and a half million for the current year 2026.

It's partnering inside 25, the main benefit we have inside our balance sheet 2026. CapEx, what I anticipate, page number 10, in this chart, we have the breakdown because a lot of investor ask us, "How is the breakdown of our CapEx?"

We decide to give more color about the CapEx. You can see here the cash CapEx coming from 26.7 to 24 because the utilization rate of our data center is very, very low.

In Italy, we have 51% of occupation rate, and in Germany, for the premium part, 53%. Other part are IFRS is 7.

7.6 million is the effect of the sign of the lease contract for the space of the offices. The IFRS depend a single year when expired the single contract we need to renewal, and we have the CapEx effect.

It's not cash. The cash CapEx was only €24 million.

13 are maintenance, and 10.7 was growth CapEx. €13.3 million maintenance CapEx means all the CapEx we did to maintain, update all the customer base, all the active contract.

If you don't have organic growth, we spend only €13 million to maintain, update the technology. Breakdown, the slide I go now on page number 11, the bridge on net debt.

Starting from €212 million end of '24, we close gross with the 224.8, mainly driven you can see here by buyback for roughly €16 million. If you don't consider this buyback, we close with €208 million net debt.

We decided to buy strongly our share because the price was very, very competitive, and at the end was probably a good decision. In any case, we can use this treasury share to finance part of M&A.

In general, you can see here EBITDA 66, cash CapEx €24 million, income and tax €5 million, interest paid 9.8 includes partially the new bond issued in October '25. Reorganization means the cost to have cost reduction for salary in Italy and Germany during the first and second quarter.

The new bond cost, amortizing cost of the issue of the new bond, 2 and a half million, M&A, and mainly dividend and the buyback. If you deduct the debt IFRS 16 for the rent of the offices for 11 €12 million and the value of the treasury share at the end of December for €56 million, the net debt adjusted was 156.

Deleverage was very, very strong. You can see in the next chart at page 12, here you want to show how was the figure of the company the last 5 years.

Naturally includes a lot of cash out for acquisition, because we spent 100 80

€160 million in Germany to finance M&A and 40 roughly €40 million in Italy. Whatever we have €200 million cash out to finance M&A, we deleverage a lot the company.

If you consider gross debt, from 5.2 to 3.4. If you consider the value of the treasury share, from 4.2 to currently 2.6.

We consider below three times a very, very safe trigger to stay. We want to maintain our company in this range below three times, and we are just in line with our target.

That's it. The Board of Directors this morning approved an additional issue about partial cancellation of the treasury share.

We consider that currently the company own 12 and a half percent of the share capital. The current market value is roughly €95 million, and we decided to cancel 6% of the treasury We proposed, naturally, to give the opportunity to our shareholder assembly to cancel 6% of treasury share in our next meeting end of April when we approve these figures.

Obviously, we saw last year a lot of transaction about sale and leaseback of data center asset. We have in Germany a full set of data center, 17 data centers, and we start evaluation with advisor to analyze the possibility to sale and leaseback part of our data center, not the premium part, the traditional data center, to raise cash to finance M&A.

M&A is currently a priority for WIIT. Consider that after the decision of Broadcom to cancel large part of the provider in Europe, we receive weekly opportunity to do an M&A in Germany, France, and in Italy too.

What do you think in the next two, three quarters, we will start materially to do M&A. Analyze to sell part of the asset with a sale and lease process to raise money on top of the cash we have on the hand from the bond and part of treasury share to finance an external growth of the group.

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

Hi, good afternoon, and thanks for taking my questions. The first one is on the sale and leaseback opportunity of your German data center.

I was wondering if you have any idea of potential cash-in and terms of let's say impact on your adjusted leverage including the higher IFRS. The second question is on your recent admission to the Broadcom Advantage Program you were mentioning.

Should we expect an acceleration of the M&A activity as you were mentioning, but also I guess some commercial traction from 2027 onwards? I was wondering if you expect an additional growth of the top line from this event.

The third one is on the price increase. I saw OVH that raised the pricing on their offers giving the rising cost for electronic equipment.

I was wondering if you are planning to replicate a similar price increase. Thank you.

I start to answer the first question about the transaction about data center. Depend, naturally, the perimeter.

We assume that it's roughly 7 megawatt, the perimeter to data center to the sale and leaseback. Depend if you consider the debt IFRS for the rent or not, naturally.

Because naturally we want to have for 10 years the right to use all the asset sale. That means we put in our debt, naturally, all the contract of 10 years the contract on leasing.

Is sure over €100 million cash. Consider the transaction in the last year, the multiply was from 18 to 22 times the EBITDA subject of the carve-out.

This is the answer. For this reason, is material for WIIT.

That means the debt if you don't consider the debt of rent we go to zero with the carve-out. If you consider, naturally, the debt of the rent is a difference.

You have cash on the hands, you have debt to pay in 10 years. The cash you can use immediately, and the debt in the other hand you are paying in 10 years.

Okay. About the firepower, consider that we have currently €50 million cash of the excess of the bond we raise in October.

We have additional €40 million of treasury share considering canceled half of the treasury share, in addition €40 million of finance. We have currently €140 million can be use, plus the cash arriving from the carve-out.

That means we don't need capital increase to finance M&A. This is the message.

So 140 plus a carve-out, that means €240 million firepower. Second question about Broadcom M&A.

Naturally, Broadcom [agevolate?] the consolidation in Europe.

Naturally, it's not a short-term feedback on the market. At the end, all the partner with Broadcom expire the contract by June of 2027.

That means by end of this year need to take a decision with which partner they want to join in the next 3 years to guarantee the continuity of the relation with the client. Because otherwise they need to decide to leave this business, or sell the data center the M&A, or find a new partnership with one of the residual certified partner.

It's

very difficult to migrate. In term of organic growth, we have just now an increase in the pipeline for the next year because Broadcom canceled not only the provide partner, but the white-label program.

That means a lot of software house now is no more enabled to sell VMware product inside their services. They need to find another partner.

We have an increasing pipeline for the big software house, and otherwise we have opportunity to find a new partner for our indirect channel. Enrico, do you want to give more color about the

I am

It's mainly related to indirect channel.

Yes, as already introduced by Giorgio, there is a commercial traction related to this effect. For sure, into the indirect channel, several players are looking, not only to the Broadcom topics, is a kind of acceleration on the looking for a new strategy.

The part of having the benefits on having a new partner is not belonging only to the Broadcom effect, but also to the fact, for example, the cloud-native platform that we deployed over the last 3 years is a potential new acceleration for other players. We already have seen an incremental pipeline coming from this, relevant because we are talking about a relevant amount of core technology that accounts for several millions.

We are very happy for that. Doesn't mean that we already signed all the contracts, is a little bit early

To forecast now.

to forecast now, but

I think end of June, we have more clear idea, July, about 2027 figures. Because consider that this Broadcom policy impact our balance sheet 2027, not '26, because we have the times for the migration, contract.

We have more visibility in the middle of the summer to understand how is the real impact of 2027.

Of course, this means that under this we have the umbrella to operate in all the countries that we are operating currently, that means Switzerland, Italy, and Germany, and also the new country potentially because M&A is not finished. This is important.

The fact in all the countries has been very, very huge. Italy, the result is we remain only four Italian provider to operate, in Germany

nine,

and in Switzerland four or five. Quite relevant impact.

We will see the effects in the following months, but we had an increasing weekly amount of meetings with C-levels of partners and clients as well.

The first question about price increase, OVH naturally is most exposure on the technology layer. We not so much, but we naturally update our price list with a new cost of server, storage, but for WIIT is not so material, because all the infrastructural part is 25% of the value of our contract.

Naturally, we increase the price, but all the providers are increasing price. There's not an issue on the table, because for all the providers, we have more cost for memory, more cost for servers, and probably who have in the storage in warehouse more server have a big advantage for the single quarter.

If you see full-year effect is no material.

Many thanks.

Good afternoon. First question is a follow-up on the sale and leaseback.

I want to better understand the rationale why, for example, you are considering Germany, but not Italy, and why are you referring to the less premium part of the data center, and if you can explain if there is any negative from the managerial point of view of having leaseback the asset, and if you have, let's say, the option to regain the control at the end of the leaseback, so.

All right, the first part question is why not all the data center. Because we want to maintain internally the full premium data center.

In Italy, we have only premium data center, and the new one in Germany. The occupation rate I told you before was related to the premium part.

The other part are full-utilized data center with the old small part of colocation, the old business we had in the first company acquired in Germany. It's only, to understand, €12 million €12 million revenue in term of colocation,

and

30. €12 million.

€12 million in Germany is 70. There is a 20% of the total revenue in Germany.

We don't want to transfer the customer base. We want to maintain all the contract with the client, and only to transfer the asset and sale and leaseback.

We guarantee a lease for 10 years. We want to guarantee for 10 years the rights to use for leasing and the free cash flow, naturally, and we want to maintain the customer base.

For the more, diciamo, traditional business, colocation, infrastructure without managed services, because just now all the premium part has migrated in our premium data center. All the premium part, the value part, is hosted by our premium data center in Germany.

We have additional eight To understand, 7 megawatt is roughly seven or eight data center with not with a premium service inside, partial colocation, more IaaS, bare metal business, not exactly in our core now. Energy impact, we don't have impact because we have fixed rate in Italy for 7 years and in Germany for 3 years.

We fix the price for KW for 7 years in Italy and for 3 years in Germany. We don't have impact of fluctuation of the energy price.

I haven't asked yet, but actually was my next question, on the energy, you have already answered. Last, you were mentioning the churn affecting more 2026 than 2025.

If I look at Q4, should I assume that Q4 has already, let's say, seen the full effect of the churn in Germany or is not yet a run rate, a stable run rate?

We are in the middle of the river. It's partially inside, yes, but the full effect we have in the 2020 It's one client, mainly one client.

The value of contract is roughly €5 million. We have €2 million effect economically in 2025 and €3 million in 2026.

Partially Q4 is done, but there's no full effect. We have residual part.

The good news is the gross booking in Germany was highest than 2024, and we have fully compensation in term of revenue. For this reason, the budget 2026, we expect slower single-digit growth in Germany, whatever we have this big churn, because the gross booking fully compensate the churn.

Naturally, we are

The single digit is on ARR including the churn?

Yes, we expect to growth high single digit include the churn in

Germany. While in Italy, we expect to grow fast.

Because in Italy, we don't have this big churn. The sales in Germany are accelerating.

This is very important. Accelerating in the correct way, let me say.

We are accelerating in term of gross sales with more high-value contract compared last year. Last year, we closed roughly 25% of the booking high value.

The target of our sales group in Germany this year is to sign 50% of the gross booking on premium sales. MBO and all the budget and the bonus for the current year is targeting on the premium part.

Yes,

there are accelerators specifically designed last year first and has been the signal, and this year is also accelerating.

Thank you.

Hello everyone. Can you hear me?

Yes, yes, yes.

Okay. I think part of the question has been answered before, just to have maybe the confirmation of that.

If I look at the end of the first-half results, you said that the utilization rate was around 40% in Italy and 70% in Germany. Should I assume that this 70 was the overall utilization, including all data centers, or is it just the premium one?

How should I think about this?

No, it's only related with Primo Cloud. We change the communication because it's more important to be aligned with the market.

In this chart, when we declare 51% Italy and 53, is the premium part. The other part is 85% is probably part of the perimeter we are evaluating to the carve-out.

The premium part.

Okay. Thank you.

Hello, Alessandro. I just wanted to ask you something as a follow-up on the question of my colleagues that already asked very brilliant questions.

Maybe it's a little bit more general on the industry. I'm curious to know what do you think about the sovereign cloud solution coming from the hyperscalers, because it's something I've been reading a lot.

I know there is the Cloud Act playing in it, but I would like to know if it's a real substitute of your offering, because basically starting from the last year after the Trump tariffs, the equity story around WIIT has been enriched with the narrative of the data sovereign cloud. I would like to know what do you think about that and if that could have any kind of legal barriers and compared to the European solution that you offer.

Thank you.

I will answer on behalf of Alessandro. It's a very relevant topic.

I'm facing really a boost in the last 2, 3 months in all the regions, not only in Italy, on this data sovereignty. One of this effect that was totally unexpected that we are opening discussion with Italian banks.

This is a new

news for us, eh?

Yes, it's absolutely new in Italy because we have, of course, in Switzerland, minor in Germany, but absolutely new in Italy. It's becoming a rising concern.

In Germany is already a concern. In Italy is becoming this rise not only for the data sovereignty itself, it is also belonging to the fact that the clients in general are starting moving heavily on the digital transformation also using AI.

This topic is totally absolutely linked to the intellectual property of the data. Not only where the data are hosted, who is maintaining, but the fact that into this data there are the foundation of the agentic AI and AI itself.

They are all linked together, and this is more or less the blueprint of every single discussion I'm having with the clients. I closed one call with a CEO few minutes ago talking as well around this topic on an Italian corporate, an industrial corporate spread across the globe.

We are signing a new contract with this client, and the discussion is we have to open other tasks that are AI-related. We want the total data sovereignty, because it's a mandatory topic for us to operate.

Absolutely, it's becoming a rising topic. There will be also another effect in the next months belonging to the fact that one in particular analyst is started mapping WIIT as one of the player into the sovereignty cloud.

This is becoming another interesting effect. That also they're all linked: AI, data sovereignty, Broadcom, cloud native, because all the clients are start looking for alternatives to the hyperscaler.

Sovereignty means also getting out of on-premise, stuff like that, but also rebalancing the power of the hyperscaler, that means having alternatives on the cloud-native platforms that unless the last 2 years were not really a presence story in Europe.

Thank you for the answer. No, just because I saw some kind of major telecommunication player from Italy, I wouldn't talk about Telecom Italia, for example, that closed a partnership with Microsoft, and they were mentioning a lot the cloud sovereignty.

I think maybe, I don't know, they could steal some kind of market share from the narrative of WIIT of being indeed a European player for European companies. Of course, this is a big topic for you, a good selling point for your architecture, but I would like just to know a little bit better if and how American hyperscaler have been encountering some kind of maybe major forces from European legislator in order not to operate and not to steal that kind of market share that otherwise WIIT would have been involved in.

I don't know if you have any kind of comments on this side. It's more on the American side rather than your selling point, and that's the last question.

Thanks.

Yes. In general, what we are seeing and we are meeting also some other telco providers, several of them did an agreement with Microsoft or Google or whoever.

The real result in terms of, let me say, sales has been very, very poor. The other thing is, from my point of view, doesn't make any sense to have a super big announcement with Microsoft, other player.

The topic is the clients are already into the hyperscaler. They're looking for other options, not for

a

yes, for more hybrid. They're more concerned on the finding players with a capability to host large infrastructure and large and relevant footprint in terms of microservices.

From my point of view, out of the telecom Microsoft, the topic is you need to have a reliable and the real with references cloud-native platform. There's no reason to move into the hyperscaler to find a solution to the service that you don't have in your footprint.

At least for WIIT is a priority to have a full set of services in every single direction, that means AI platform, cybersecurity, cloud native, Broadcom, non-Broadcom, to give a real chance to the clients to move outside and to rebalance their existing superpower of the hyperscaler. Hyperscalers are currently more than 70% of the European market.

80 80.

That means there's no reason to empower that part as well. Clients are looking for different options, not for enlarging this kind of powerful.

Thank you.

Yes, good afternoon. Just a follow-up on the Q4 performance.

From my estimates, the profitability in the, say, in the German market was a little bit softer compared to the performance recorded in the prior quarter in Q3, while this was in part offset by very strong ongoing profitability for your domestic market that should have reached around 55% in Q4. I was wondering if you could add a few comments on that and whether you see the current profitability level in Italy as sustainable also going forward.

Thank you.

Yes, I think profitability in Italy is really sustainable, and at the end, we expect to increase the EBIT margin for the current year, because the effect of the reduction of the CapEx will be more visible in the next 2 years. I expect to have less amortizing for 1 and a half million yearly and more 2027.

In Germany is stable before. Consider that the single quarter is not have so sense to analyze in a quarter, but we have a fact of one credit note issued at the end of this year, because one client have a discount based on the network traffic.

For this reason, Q4 in Germany is stable, largely stable, but is only effect of one una tantum effect of discount account only in the Q4 and not in the full year. In general, what I anticipate, Germany compensate fully the churn, and the net booking was positive.

That means we expect slow growth in Germany for the 2026 and more consistency growth in Italy. The pipeline now in Italy is fully recovered, because consider that last year we was not so high-value pipeline.

Now, Broadcom effect plus what Enrico anticipated in terms of data sovereignty and new clients are probably coming in the next quarters, that means it's very, very sustainable with more EBIT. Because the capacity we have, we can double our revenue without expansion CapEx.

We need only to invest in server, storage, and software on the deal, the single deal, but we have capacity.

Understood. Thank you.

Hi, just a follow-up on your 2026 expectation. Excluding the German sale and leaseback, on the current perimeter, consensus expectations are south of €180 million.

Should we expect €3 million less related to the German remaining impact on the churn? Then the adjusted EBITDA is around 40% margin, and I see cash CapEx in the region of €25 million.

Now I don't know if is better to assume something lower or flattish compared to 2025, €24 million or even less. Thank you.

Currently, we confirm the market expectation about €182 million and €73 million EBIT. We don't have now the visibility to understand the CapEx we need to do for the Broadcom consolidation.

If you don't consider the Broadcom consolidation, €24 million cash CapEx is totally in line with our budget. Naturally, if you have opportunity to consolidate with more partnership, probably we increase a little bit the CapEx because we have more revenue next year.

Based on the current business plan, 24 cash CapEx is in line and €73 million EBITDA is the consensus from our point of view is achievable. Starting from €67 million of the last year, consider that we have the full effect of the contract activated the last quarter plus the organic growth.

Understood.

It's conservative, but achievable.

A follow-up, still a very small market, but I was interested in having your comments on Switzerland.

Switzerland is a huge opportunity, because it's small in terms of number of people live there, but is not so small in terms of size of the cloud market. It's roughly similar Spain.

It's a big market, because is very, very restricted, very, very regulated. The problem we have in Switzerland now, we need to increase the size of the company.

We need to achieve €30 million of ARR, and for this reason, M&A could be probably the main option we have on the table to accelerate our growth. Because organically we are growing.

Last year, we closed €1 million gross sales. We expect this year €2 million, but it's too slow.

€2 million yearly, we need 10 years to achieve the correct size. With M&A, we want to accelerate.

We have, fortunately, target, because in Switzerland, Broadcom, the same effect, we remain five companies in Switzerland, and a lot of small providers are out of the program and need to find a solution. We have discussion not only Germany, France, Italy, and also in Switzerland, we have currently discussion.

M&A probably is the best option we have to accelerate our growth. We need €30 million of ARR to be consistency in the market.

Also for the sovereignty point of view in the last 3 months, because consider in 2025 Switzerland there has been a rising topic on having hyperscaler with the resident data there. It seemed that also for the banking, the collaboration tools, for example, could have been shifted to the hyperscaler.

In the last 3 months, there has been a really a high level of critics coming from different players. The Swiss government changed the direction, and the result has been a very hard slowdown into the potential shift to the hyperscaler.

That brings back again into the sovereignty topic for Switzerland as a major concern.

In terms of, let's say, ability to upsell and also consolidation of your customer base, should we assume that now your customer base is, we should not expect churn, but just maybe a clean-up of the non-core ARR revenues? Correct, correct,

correct. We have additional six €7 million of non-core hardware sales and project.

We are clean up this part of revenue. I want to grow in from €12 million is our ARR to I hope 20 shortly, and the target will be 30 in the midterm.

Because the cost of the salary is very, very high. Consider in Switzerland we have €8 million of Swiss franc million in cost of salary with €12 million revenue.

It's double compared the German, we need to have more size. We have capacity, because the company acquired was a turnaround with €20 million revenue when before the acquisition.

They have a lot of churn. Now the situation is very, very stable, the client are still on board, we don't have churn in the last 6 months, we want to restart to growth, but the company need 8 or €9 million more revenue to return back profitable, seriously profitable.

Now is 12% is very low from our point of view. 30, 35% is target.

Very clear. Thank you.

Hello, a follow-up on my side too. The first one is more, let's say, strategic, and I was wondering if you were considering also selling Geckosoft to finance a future M&A.

In terms of maybe multiples that you would pay if these providers that are excluded from the Broadcom program are in a way forced seller, what kind of multiple should we think in terms of M&A?

Geckosoft is not on the table. It's a profitable company.

It's running 23% EBIT margin and with good customer base, and we share some client in the cloud business. It's not on the table to sell Geckosoft.

It's profitable. In any case, the current market price, the consulting company is trading at five, six times EBITDA.

It's not the timing. It's not on the table, and in any case, the price sure no.

About M&A, it's correct what you've answered that multiply are decreasing. We are now starting to discuss multiply from six times to eight-time EBITDA before synergy.

The trend, I think, is decreasing then in the following quarters, because when you arrive close to the end of the contract, you are forced to sell the company. Currently, the request arrives now is six times, five, eight, the bigger one, but compared last year when the request was 10 times, 12, now the point is from 5 to 8.

What I suppose is in the next quarters could be option to additional decreasing for the request for the seller. From our point of view, five, six times before synergy is a good deal, because consider we have a lot of synergy in terms of data center, operation.

Oh yeah, yeah, but

my point was more about if you're forced to sell, in a way it's maybe too brutal to say that, but you can squeeze as much as you want, right, in terms of the multiples you pay. Anyway, it's very clear.

Very clear. Depend.

Single target is a different story, no? Because if you're talking with one big part with €1 billion revenue and this part is very residual, or other are only this business, every single target Day by day, there is not one single story.

Depends.

Thanks to all for joining the conference, and see you soon for the next conference for the probably Q1 results in April. Thank you.

Bye. Have a nice day.