SeSa S.p.A. Aktie

Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the SeSa Full Year 2027 Consolidated 3 Months Results Conference Call.

[Operator Instructions]

At this time, I would like to turn the conference over to Mr. Jacopo Laschetti, Head of Stakeholders Relations and Sustainability of SeSa. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining SeSa Group's First Quarter Results Conference Call. On today's call, SeSa Group is represented by Alessandro Fabbroni, Group CEO; and myself, Head of Stakeholder Relations and Sustainability. This afternoon, the Board of Directors approved the consolidated financial results for the first quarter of FY '27, ending 31st of July '26. The related corporate presentation is available on SeSa Group's website and will be used as a reference during today's call. Alessandro will begin with an overview of the group's financial performance and key business highlights. I will then provide an update on sustainability, people and stakeholder value creation before Alessandro concludes with its FY '27 outlook and some remarks of our industrial plan. I will now give the floor to Alessandro.

Thank you, Jacopo. Good afternoon, everyone, and thank you for joining us today. In a digital market sustained by strong demand for data management and data protection and increasingly driven by AI and automation, we started the full year 2027 with a solid set of industrial and financial results, delivering high single-digit organic growth in both revenues and profitability at twice the market growth rate. More specifically, the first quarter confirms the effective execution of the new industrial plan 2027-2028, presented last July as we continue to strengthen our market share and to consolidate our role of digital integrator, combining technology, digital platforms and vertical applications with a progressive adoption of AI.

For the first quarter ended July 2026, SeSa reported consolidated revenue and other income for EUR 900 million, up 6.5% year-on-year and fully organic. Consolidated EBITDA amounted to EUR 65 million, up 7.6% year-on-year with an EBITDA margin achieving 7.23% slightly improving compared with the same period last year. The group ended the quarter with 6,700 people, up 2.5% year-on-year and flat compared with April 30, '26, reflecting our continued focus on skill development, AI adoption and operating efficiency to sustain scalable organic growth.

Looking at revenues by business sector, performance was driven by positive contribution for our main growth area. ICT VAS sector reached EUR 540 million, up 8.1% year-on-year, fully organic and in line with the trend already achieved in FY '26, driven by increasing demand for solution dedicated to data management, data sovereignty and cybersecurity, enabling the adoption of private AI and automation.

Green VAS sector achieved EUR 127 million, up 14.4% year-on-year in line with a great double-digit organic growth trend reported in FY '26, driven by increasing energy demand linked to digitalization and in particular, by the development of the data center market. Software and System Integration sector reported revenues for about EUR 230 million, down 3% year-on-year reflecting the disposal of selected nonstrategic assets completed during FY '26 and the ongoing organizational reengineering process. Based on the current trend, we expect Software and System Integration to return to growth starting from Q2 2027 in line with our industrial plan.

And finally, Business Services sector reached EUR 41 million up 11% year-on-year, confirming the expected return to double-digit organic growth in FY '27, driven by the contribution of multiyear contracts acquired during FY '26 and by the increasing focus on digital platforms and vertical application.

Consolidated EBITDA increased by 7.6% year-on-year to EUR 65 million, with EBITDA margin at 7.23%, slightly improving compared with the prior year period. This performance was driven by double-digit profitability growth in ICT VAS sector, Green VAS sector and Business Services together with a progressive improvement in Software and System Integration operating efficiency.

In particular, ICT VAS sector reported EBITDA for EUR 25 million, up 11% year-on-year with an EBITDA margin increasing to 4.6% compared to 4.5% in first quarter 2026. Green VAS sector achieved EBITDA for EUR 7.7 million, up 23% year-on-year with EBITDA margin improving to 6.0% from 5.6% in the prior year period. Software and System Integration sector recorded EBITDA for EUR 23 million, down 2.5% year-on-year, while flat year-on-year, excluding the impact of FY '26 disposal of nonstrategic assets, and improving in terms of EBITDA margin, which grew to 10.8% from 10.7% year-on-year, thanks to higher operating efficiency.

Business Services sector reported EBITDA for EUR 8.6 million, up 18% year-on-year with EBITDA margin reaching 21% compared with 19.9% in first quarter '26 and 19% as of April 30, '26, confirming the increasing contribution of higher value-added digital platforms and vertical applications.

Group adjusted consolidated EBIT reached EUR 50.2 million, up 6.2% year-on-year after depreciation and amortization for EUR 14 million and provision of around EUR 1 million. Reported EBIT amounted to EUR 41.4 million, up 7.5% year-on-year after PPA amortization for EUR 8.7 million. Group adjusted EAT achieved EUR 30.1 million, up 7.1% year-on-year, supported by profitability growth in ICT VAS, up 12.6%, Green VAS, up 20% and Business Services up 11.4%, while Software and System Integration remained substantially stable down 1% year-on-year on a reported basis, but up 1%, excluding the impact of FY '26 disposal of nonstrategic assets.

During the quarter, net financial expenses amounted to around EUR 7.5 million, improving by 11% compared with fourth quarter '26 and in line with assumptions of our industrial plan supporting the quarterly trend in group net profitability.

In the first quarter, we also achieved a solid financial position and strong cash generation. Reported net financial position as of July '26, was equal to EUR 23.4 million of net debt, improving by around EUR 40 million compared with July '25 after EUR 120 million of investment over the last 12 months, including EUR 20 million in first quarter '27 and after EUR 40 million of dividends and share buybacks over the same period. Excluding IFRS liabilities, group net financial position was equal to EUR 150 million of net cash with a slight improvement year-on-year.

Overall, the first quarter 2027 confirms our ability to combine organic growth, increase of operating efficiency, industrial transformation and strong cash flow generation. With this positive first quarter performance, I will now hand over to Jacopo for an overview of our sustainability and stakeholder value creation priority.

Thank you, Alessandro. In line with our purpose of creating long-term sustainable value for our stakeholders by promoting innovation, including digital innovation across businesses and organization as well as people well-being, sustainability remains fully embedded in the execution of our business strategy in the new industrial plan '27-'28. The first quarter confirms the close link between digital transformation, sustainability and business growth. Our Green VAS sector continued to deliver double-digit growth driven by increasing energy demand connected with digitalization and in particular, by the development of the data center market.

At the same time, our activities in data governance, cybersecurity, digital platforms and AI continue to support customers in improving efficiency, resilience and control over their digital processes. On the environmental and governance side, we continue to develop our sustainability programs and strengthen transparency towards investors and all stakeholders. We confirm our main ESG ratings including EcoVadis Platinum, MSCI BBB and CDP Level B.

In FY '26, we completed the ISO 27001 certification process across all main group companies, further strengthening our information security and governance framework. At the same time, we continue to extend group certifications and progressively increase the adoption of renewable energy. People remain a key enabler of our transformation and the execution of the industrial plan. As of 31st of July '26, the group counted 6,770 people, up 2.7% year-on-year and stable compared with April '26. This stability reflects the first tangible benefits of the initiatives launched to develop skills, accelerate normal sharing, progressively adopt AI and automation across the organization and increased operating efficiency.

We continue to invest in education, welfare, inclusion and work-life balance, with a growing focus on the skills required in the areas of highest market demand, including AI, data management, cybersecurity, digital platforms and vertical applications.

These investments support scalable organic growth, improved productivity and ensure that our people remain central to the group's long-term value creation model. Finally, our value creation model continues to combine sustainable growth with shareholder remuneration. The new industrial plan confirms a payout ratio of approximately 40%. In line with this policy, the dividend to be distributed on 23 September will increase from EUR 1 to EUR 1.33 per share with the perspective of reaching up to EUR 2 per share over the next 2 years, subject to the achievement of the industrial plan targets.

Consistent with our shareholder value creation policy, we have already launched our EUR 5 million buyback program. And today, the Board approved a further program of the same amount. Additional purchases will be evaluated within the overall authorization of up to EUR 20 million. In this scenario, we will continue to focus on sustainable value creation for our stakeholders combining innovation, financial discipline, people development, a responsible group. I will now hand the floor back to Alessandro for the final remarks.

Thank you, Jacopo. Two months after presenting our new industrial plan, '27-'28, we are pleased to report to our stakeholders a solid start of FY '27, consistent with our strategic priorities: organic growth, operating efficiency, market penetration and the progressive adoption of AI and automation. The market environment remains supportive. The Italian digital market is expected to grow by around 3.5% per year through 2029, driven by AI, cloud, cybersecurity and data management. In that scenario, SeSa continues to grow at around twice the expected market rate.

In the first quarter 2027, we delivered a solid single-digit organic growth. We improved our profitability and cash flow generation, and we continue to invest in our industrial transformation. The first quarter confirms 5 key messages for our stakeholders: First of all, revenues increased by 6.5% and EBITDA by 7.6% fully organically.

ICT VAS sector confirmed strong momentum supported by data management, cybersecurity and data protection demand and driven by private AI and automation. Green VAS and Business Services sectors continue to deliver a strong double-digit revenue and EBITDA growth. Software and System Integration show improving operating efficiency with EBITDA margin increasing to 10.8% of revenues and a return to revenue growth expected from the second quarter of 2027.

Group cash flow generation remains solid with reported net financial position that improved by around EUR 41 million year-on-year after EUR 40 million of distribution and share buyback last 12 months. We are also progressing towards model increasingly focused on organic development, integration and group transformation with continued investment in higher value-added capabilities and digital platform. Based on this positive start and the current order trend, we confirm the full year 2027 guidance of our industrial plan, revenue growth in the range of 5% to 7.5%, targeting EUR 3.8 billion to EUR 3.9 billion, EBITDA growth in the range between 5% to 10%, targeting EUR 274 million to EUR 287 million and adjusted group EAT growth in the range of 7.5% to 12.5% targeting EUR 115 million to EUR 119 million.

Looking ahead, we will continue to execute the plan with strong commitment focusing on organic growth, operating efficiency, cash flow generation and the capability to promote innovation across business and organization. Our strategic priorities remain clear: to grow at around twice the market rate, to improve our skills and capabilities and continue to extend our track record of consistent revenue and profitability growth while creating sustainable long-term value for all our stakeholders. Thank you for your attention and for your continued interest in SeSa Group. We're now pleased to open the Q&A session.

[Operator Instructions]

The first question comes from Aleksandra Arsova with Equita.

So a couple of questions from my end. The first one is maybe some clarifications on the Software and System Integration business. If I'm correct, you mentioned that you saw an organic net of disposals growth -- basically flat growth over the first quarter? And do you expect to return to growth already as soon as in the second quarter of the fiscal year '27? So my question is what has changed between the first and the second quarter that makes you believe there will be a significant or, let's say, material improvement already in the second quarter?

And the second one, if maybe, again, a little bit of color on trading update and visibility on the full year guidance. So if I remember correctly, during the July call with the fiscal year '26 results, you mentioned that, as usual, you are a little bit maybe conservative with the guidance and that there could be some room for ending up in the upper end of the guidance. So do you still see room for ending up in the upper end and then which are the main moving parts you see in the coming quarters?

Thank you for the call, Aleksandra. So first of all, our view of Software and System Integration is a very positive view due to the backlog order and strong job we did in the first quarter. So first of all, we highlight that the first quarter results are fully in line with our industrial plan that provide an estimate of low single-digit growth, both in revenues and profitability. It's true that in comparison with the last quarter, Q1 '26, we reported a negative trend. So revenue declining 3%, EBITDA 2%, but net profit just 1%.

And I remember that in Q1 '26, we started with a down in net profitability of 26%. So that means we improve in a strong way, the skills, the competencies and also bottom line, we are working with the perspective to grow year-on-year. So in the second quarter, we expect to recover, in particular, in areas like technology and integration services -- and so that represents an opportunity to recover overall grow low single digit quarter-by-quarter and year-on-year, starting from the Q2.

We started the first quarter overall with the path that is in the mid of our guidance. So the trend, the strong momentum we continue to have in ICT VAS and the positive performance of Business Services, the expectation of recovery in Software and System Integration are positive sign for the future potential upgrade of our guidance that, in any case, is confirmed today.

The next question comes from Tommaso Nieddu with Kepler Cheuvreux.

Both my questions are on margin. I think they are the main highlights of these results. The first one is on Business Services. I mean we are seeing continuous margin gains in that segment. So at what point do you think the segment's margin should normalize versus continuing to expand structurally? That is the first one.

And the second one is on digital Green VAS. As we expect continuous margin expansion as well as you are integrating GreenSun and the comparison with last year is to an expansion of 40 basis points. This 40 basis point run rate we should expect throughout the year, so 2027 versus 2026.

Thank you for the question. And so in effect, we performed really well in Business Services and Green VAS, not only in terms of volume, but also in particular in terms of profitability. So the good news is that in the Business Services, first of all, we grew double-digit in terms of revenue. That is a pure and organic internal growth. That is the first time in that sector, we grow double digit organically and so that is the reason we managed to improve the marginality close to 20%.

So in particular, we improved to 21% the EBITDA marginality and around 10% the adjusted net profitability of revenue. So we believe that it is crucial in that to continue to perform so well in terms of revenues because the possibility to develop revenues on the same platforms and applications is a potential driver of additional development of marginality. So now what we expect is to be able to confirm the good marginality ratio in terms of EBITDA achieved in Q1 and maybe to be able to increase quarter-by-quarter, thanks to so good path in terms of revenue.

I remember that the positive trend in revenues was driven by several multiyear agreements that we signed in FY '26. And so we started benefiting from these new long-term agreements. So it is difficult to be able to develop synergies and scale economies quarter-by-quarter because we are working on new multiyear agreements. So it is our expectation to continue to improve in that area.

So as for the VAS Green, so we increased 40 basis points, thanks to the synergy coming from the merger between PM Service and GreenSun. We need that. We believe that 6% may be a good EBITDA margin, combined with a 3.5% of net profitability of revenues. We have a good leadership and market position, thanks to this merger. And so we will continue to work in this direction. But again, we may reassure that this marginality is sustainable also in the coming quarter.

The next question comes from Pierre Andrea Randone with Intermonte.

And my first question is about -- I mean, the impact of a rising cost of capital on your business model. I tried to be clear. In the past, when the cost of capital suddenly raised, you were impacted by some unexpected costs that were affecting in part your cash generation. Then you worked on this problem. You implemented the cash pooling, you rationalized the structure. But you also benefited by the fact that the cost of capital was going down. Now that the cost of capital is trending up again, how is the new corporate structure? We expect that you will face, in case this trend will continue, in a better mode with a stronger approach this possible headwind.

But I mean, this is my expectation. So I wonder if you can elaborate on this factor. And the second question is, in general, I mean you are mentioning again, and this is a positive -- the good expectations for the ICT VAS. If you can go back to what are the main drivers suggesting this kind of confidence for the coming quarters.

Thank you for the questions, Andrea. So first of all, the point of our cost of capital. So I remember that today, we have in a situation that is completely different than the situation we was 3 years ago, in particular, in terms of cash flow generation. So it is the fourth consecutive quarter that we confirm last 12 months operating cash flow of around EUR 200 million. In the last 12 months, we generated around EUR 80 million of free cash flow. We improved our net financial position constantly, and we distributed last 12 months around EUR 40 million, including buyback and dividend distribution.

So there's a different situation because our growth is generating cash flow in a significant way. So the second point is that finally is changing also our group structure because we are reducing a lot the number of legal entities and so we are in different conditions in terms of balancing potential increase -- additional increase of cost of capital, obviously, we was working in the last quarter in that condition because the cost of capital has been already increased in the beginning of last quarter. And in the Q1 '27, in any case, we had EUR 7.5 million of net financial charges with a decline of EUR 1 million in comparison with the fourth quarter '26 with a very slight increase EUR 300,000 in comparison with EUR 7.2 million of Q1 '26. So it's clear that we are not completely out of the effect of an increase of interest rate, but we are in conditions completely different of the condition we was 3 years ago.

Another point, so the positive trend of our ICT VAS, we are performing really well in terms of growth, in terms also of gaining profitability and marginality. So there's a new market scenario with a great demand of data management and also data protection. And so the progressive adoption of AI is generating structural demand for data strategy. In particular, there's a more clear the necessity for any company and organization to develop a data strategy and private data management.

So the so-called digital sovereignty does not mean to be independent in the management of technology and infrastructure. So that means in particular to be able to orchestrate and to be able to integrate different layer of technology. So the role of the distributor is more and more strategic because the distributor is the ideal partner in order to aggregate, to enable this particular phase of the market. The expectation of the market is to grow around 2%, 3%, and we are gaining market share because we are growing 8%, and we started really well also the new quarter, so the second quarter of 2027. So we are really positive in that view for coming quarters.

I just have a very quick additional question. I saw that there was a merger between the 2 holding companies into the new holding now is a SeSa holding? Do you have any particular comment on this kind of transaction or just a simplification?

There is a simplification, but also a strategic reason to be identified as SeSa Holding as long-term strategic long-term owner of SeSa. And at the same time, I would like to underline that we have continued to increase our share as SeSa Holding in SeSa, starting from the 52.8% of 18 months ago. We achieved around 57.1%. We will continue to increase our stake.

[Operator Instructions]

Mr. Fabbroni, there are no more questions registered at this time.

So we would like to thank, again, all participants, and we will stay available, obviously, for any additional request information and tonight and also tomorrow, we are organizing several calls with our stakeholders. We are available together with Jacopo for organizing them. And so thank you again, and good evening, everybody.

Thank you very much.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.

Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the full year 2026 Consolidated Results Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Jacopo Laschetti, Head of Stakeholder Relations and Sustainability of SeSa. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining the SeSa representation. Representing set today are Alessandro Fabbroni, Group CEO; and myself, Jacopo Laschetti, Head of Stakeholder Relations and Sustainability. Earlier today, the Board of Directors approved the consolidated financial results for the FY ended April 30, 2026, and the new industrial plan covering the fiscal year 2027 and 2028.

The corporate presentation is available on the SeSa website and will serve as a reference throughout today's conference call. During today's presentation, Alessandro will first review the group's financial performance for the fiscal year '26 then present the main strategic priorities and targets of the new industrial plan 27, 28. I will then provide an overview of our sustainability achievements and better generation for our stakeholders before Alessandro concludes with his final remarks. Now I give the floor to Alessandro

Good morning, everybody, and thanks for joining our group presentation. In a digital market supported by growing demand for data management and data protection driven by the increasing adoption of AI and automation.

The SeSa Group closed the fiscal year 2026 by achieving all industrial and financial targets set out in the 2026 and 2027 industrial plant by delivering a strong organic growth twice than the market trend and by increasing our market share and our role of digital integrator able to combine technology, digital platforms and vertical applications with AI adoption.

In particular, we are pleased to report that we achieved all financial targets in the upper end of our guidance that we communicated to the financial market and we are starting now the new fiscal year 2027 with a double-digit growth in revenues, and we expect also in profitability. In the fiscal year ended April 30, 2026 the SeSa Group reported consolidated revenues and other income from EUR 3.6 billion, up 7.9% year-on-year compared to pro forma results, that means like-for-like performance and up by 10.6% against reported ones.

Consolidated EBITDA reached EUR 260.4 million, increasing by 8.2% year-on-year compared to pro forma and by 10.6% against reported results with an EBITDA margin stable at 7.2%. The second half of 2026 market clear acceleration in our past with revenues growing by 9.8% year-on-year and an EBITDA increasing by 9.9%.

In the Q4 2026 alone, group revenues reached [ EUR 950 ] million, up 9% year-on-year, while EBITDA amounted to EUR 69 million, up 8.2% on with a quarterly EBITDA margin at 7.6% of revenues. The group closed the fiscal year 2026 with around 6,700 people. That means a 3.6% increase year-on-year, but on year end with a stable trend during the second half of the year that confirms our strategy to be more and more focused on operating efficiency combined with scalable growth and the adoption in increasing way of iron automation, consolidated revenues show contribution from our group sectors ICVA reached EUR 2.25 billion, growing 8.6% year-on-year with a strong acceleration in the second half, up 13% year-on-year.

Growth was entirely organic and supported by increasing demand for data management and private infrastructure driven by the AI adoption and the growing request of digital sovereignty and security solutions. Green DAS achieved EUR 412 million in the year, up about 20% year-on-year driven by growing energy request from business segment resulting from the acceleration need of data management, governance and private AI solutions.

Software and system integration sector reported EUR 909 million revenues, growing by 3.8% despite lower demand in some manufacturing [ districts ] while with a significant 7.5% increase in Q4 only. Business services finally reached EUR 159 million, up 3.2% year-on-year fully organic, supported by the development of digital platforms and vertical applications dedicated to the financial services industry with an expected return to double-digit growth in FY '27 thanks to some main contracts that we acquired during the second half of FY '26.

Consolidated EBITDA increased to around EUR 260 million, up 8.2% compared to pro forma results, so like-for-like and up to 10.6% compared to reported figures driven by the positive performance across some sectors particularly sustained by ICT and Green AS. The ICT VA sector reported EBITDA for EUR 101 million, up around 13% with EBITDA margin improving to 4.5%, gaining 20 basis points in comparison with 4.30% of the previous year.

The green BAS sector achieved EBITDA for EUR 29 million, increasing by 18.4% compared to pro forma and so like-for-like, with a stable EBITDA margin at 7.0%. Software and system integration recorded EBITDA for EUR 96.6 million, up around 2% year-on-year with a solid 5% growth in the second half reflecting the positive impact of organization engineering implementing throughout this year.

Finally, Business Services reported an EBITDA for around EUR 30 million, up 9% year-on-year with an EBITDA margin increasing to 19% of revenues. Group consolidated EBIT adjusted for good in amortization and nonmonetary cost, reached EUR 197.5 million, increasing by 6.5% compared to pro forma results and by 9.6% versus reported ones after depreciation and amortization for EUR 55 million and provisions equal to EUR 8.2 million.

The reported EBIT amounted to EUR 152 million, up 4.3% year-on-year compared to pro forma results and 8% versus reported 2025 after a good amortization for EUR 37.5 million, up 15% year-on-year. In the FY '26, the group benefited from a significant reduction in net financial expenses equal to EUR 34 million, down 16% compared to EUR 41 million year-on-year driven by lower interest rates and by the FY '26 improvement in financial efficiency and net financial position.

The group EAT adjusted for good amortization reached EUR 160 million, up 10.7% year-on-year compared to proforma results and 13.3% compared to reported '25. NET income after taxes reported amounted to EUR 80.6 million, up 13.2% compared with EUR 71 million as of April 30, '25 on a pro forma basis and up 20% year-on-year compared to reported results.

The FY '26 was also characterized by a solid set of financial results and strong cash flow generation operating cash flow reached EUR 205 million, driven by profitability growth and higher efficiency in working capital management after EUR 110 million of investment net of EUR 10 million of noncore asset disposals.

The full year, EUR 26 million, EUR 110 million investment consists of EUR 50 million of CapEx in digital platforms for the group formation and of EUR 60 million dedicated to selective set a small and vertical M&A and in particular focus on the program of minority interest acquisition to drive the organizational simplification.

After the EUR 110 million of investment and EUR 40 million distributed to shareholders through dividends and share buyback during the year, the net financial position improved significantly from EUR 75 million of April 30, 2025 to EUR 17.5 million of net debt as of April 30, 2026 million, up by around EUR 60 million while excluding the IFRS liabilities.

The group net financial position was equal to net cash for EUR 182 million as of April 30, 2026 compared to EUR 158 million as April 30, 2025. With a so positive peak share of FY '26 results, I give the floor to Jacopo to present an overview of our ESG results and our value generation programs for the stakeholders.

Thank you, Alessandro. In light with our purpose to create long-term sustainable value for all stakeholders, promoting innovation, including digital innovation of businesses and organizations as well as the well-being of people, sustainability continues to be fully integrated in the execution of our business strategy and remains one of the pillars supporting long-term development of our group. In the fiscal year '26, we achieved a very positive set of ESG results.

The value generation was equal to EUR 550 million, of which 90% distributed to stakeholders with a 10% increase year-on-year. We also successfully achieved all the targets set out in the '26 - '27 sustainability plan. Electricity consumption per capita declined by approximately 4%. Natural gas consumption per capita decreased by around 5%, while approximately 97% of the electricity purchased by the group now comes for renewable sources.

Our renewable energy production exceeds 1 million of kilowatt hour, resulting in more than 300 tonnes of CO2 emissions avoided. During fiscal year 2016, we also confirmed our main ESG ratings, including Ecovadis Platinum, MSCI BBB and carbon reclosure project B while continuing to strengthen our governance framework and transparency towards investors and all stakeholders.

Finally, our green value-added solutions sector grew organically by reaching $412 million of revenues driven by the growing request of energy deriving from digitalization of corporate and organization and AI adoption. In terms of value creation for our stakeholders, we work to combine sustainable growth with a solid shareholder value generation.

In the fiscal year '26, the group raised its payout ratio at approximately 40%. And distribution dividends equal to around EUR 50 million and delivering a share buyback program for around EUR 25 million.

Consistent with this approach and supported by the strong financial performance and cash generation achieved in FY '26, the Board will propose the next shareholders' meeting a dividend distribution of EUR 1.33n per share, up 33% year-on-year, equal to approximately EUR 21 million, together with the renewable of the share buyback program for an amount of EUR 20 million, confirming a payout ratio of around 40%.

In particular, dividend payment date is set for the next September 23 with ex-dividend date on September 21 and the record date on September 22. In line of this, we will continue to operate with strong commitment in creating sustainable value for all stakeholders, and growing payout for our shareholders. I'll give the floor back to Alessandro.

Thank you, Jacopo. Today, the Board of Directors has also approved the new group's industrial plan for the fiscal year '27 and 2028. In a scenario where Italian digital market is expected to grow with an annual rate of around 3.5% in the 2026 and '29 period driven by the increasing demand of technology, data management and protection boosted by the adoption of our automation says that we target to extend the high single-digit growth already achieved in 2026.

By growing twice the market trend and leveraging our positioning as a leading digital integrator or able to combine technology, digital platforms and vertical application with the adoption the new industrial plan, in particular, focuses on organic growth, organizational streamline and technological innovation by accelerating organic growth of our business core through increasing market penetration.

An organization streamlined by reducing the number of legal entities, enhancing productivity and operational scalability through the progressive adoption of AI and digital enablers while maintaining substantially stable people throughout 2028, and supporting the group transformation through annual investment of around EUR 110 million.

Including EUR 60 million dedicated primarily to acquisition of minority interest and select M&As and about EUR 50 million of CapEx on digital platform and skill development for our group transformation. Building on these pillars, the new industrial plan targets to extend the high single-digit growth revenues achieved in FY '26.

With expected revenues over EUR 4 billion, EBITDA above EUR 300 million and adjusted EAT reaching around EUR 130 million for the fiscal year 2028. In particular, we plan to achieve the following growth targets over the FY '27 '28 period, annual revenue growth in the range between 5% and 7.5% targeting a range between EUR 4 billion, EUR 4.2 billion in FY '28.

Annual EBITDA growth in the range between 5% and 10% and reach in range between EUR 290 million, EUR 350 million in FY '28, with an EBITDA margin increasing from 7.2% up to 7.5% in FY '28. Annual Group adjusted EAT growth in the range between 7.5% and 12.5% target in the range of EUR 123 million to EUR 134 million in FY '28.

Within VAS, including ICT and green, we expect mid- to single-digit growth both revenues and profitability driven by increasing demand for data management, data protection, AI adoption and digital serenity, combined with the increased request of renewable energy solutions.

Business Services is expected to deliver annual double-digit growth in revenues and profitability, driven by the development of vertical applications and digital platforms dedicated to the financial services industry and by the increasing market penetration.

Finally, software and system integration sector is expected to achieve low single-digit growth in both revenues and profitability driven by a greater focus on higher value-added activities and a progressive reduction of labor intensive business survey. Considering the very positive beginning of the first quarter of the new fiscal year '27 with double-digit growth in terms of revenues and profitability, particularly across BAS sectors, we are strongly confident in the achievement of the targets outlined the new industrial plan for new FY '27. Revenue grow in the range between 5% and 7.5%. That means EUR 3.8 billion, EUR 3.9 billion, EBITDA growth between 5% and 10% and targeting from EUR 275 million, up to EUR 290 million and group adjusted EAT growth between 7.5% and 12.5% targeting from EUR 114 million up to EUR 190 million.

We are entering the new fiscal year '27, focusing on executing of our new industrial plan with great determination leveraging our strong competitive positioning, broad technology ecosystem and high-skilled people, together with all our people who will work with strong commitment on our evolution path as a integrator with a target of continuing to grow at more than twice the market rate and by extending the continuous growth track record of revenues and profitability achieved since our foundation.

Thank you all for joining us today. We are now pleased to open the Q&A session as usual.

[Operator Instructions] First question is from Pierre Andrea Randone, Intermonte.

I have 2. The first one is about your value-added solution business, so the core business that performed very well. You provided us in your introduction, some explanations. I wonder if you can provide us more details about this quite surprising trend. .

If you can detail if there are any particular product, if you are gaining market share also in relation to some changes in the competition? And what are the drivers that make you confident in your ability to sustain this high single-digit trend also for the coming months and quarters that is probably above what you expected 12 months ago.

So if you can focus on this area. And the second question is about your net working capital. Again, the results are good. You lowered the level of your working capital. And in particular, I see higher commercial liabilities. I wonder if this is a number in relation with slightly different revenue mix. In other words, if the stronger performance on VAS business is also driving some benefits in working capital.

Thank you, Andrea, for your question. So first of all, it's true that our VAD solution is performing really well, overperforming our expectation because we closed the full year with a growth by 9% in revenues, 12.6% in EBITDA and 21% in net profit after taxes.

So that means absolutely overperforming our guidance and so we enter the new FY '27 with a great growth double digit. So that means we are really confident to be able to maintain our guidance to grow mid- to high single digit. So the change is that the adoption as a driver is generating a growing demand for data management and data protection.

And so that means a great job and opportunity for as digital integrator that is able to combine technology with vertical applications and digital platforms with the eye. I underline again that this trend seat was accelerating during the year because we're increasing in a progressive way our past quarter-by-quarter.

As for the trend of net working capital, so we really made a great job because we improve our efficiency by roughly EUR 40 million year-on-year. So that is, generally speaking, results of well performance coming from all sectors, not only from ES, I underline that we are working in a progressively moving of our software baseline as a service model that is part of our software system integration business that is not so relevant in comparison to 100% of our revenues of software system integration.

So that means just 20% of our business unit breakdown of revenues, but it is another point that is improving our capability to release net working capital management. So we are confident that we are able to continue to work in this direction also in FY '27.

[Operator Instructions] Next question is from Gabriele Berti of Sanpaolo.

Alessandro, Jacopo. A clarification from my side on the expected profitability trend. If I'm not wrong at the midpoint of the 2028 targets, the implied EBITDA margin is around 7.4%, so only slightly above the 7.2% achieved in 2026, given the top line growth expected in the range of 5 million to the assumption of a broadly stable headcount.

I would have expected more visible operating leverage and margin expansion is the limited improvement mainly a matter of prudence given the guidance? Or is it related to something else such as cost inflation, business mix -- if you can provide some color on that would be helpful. And the second question, maybe if you can explain the reasons behind the soft top line growth for the business services in Q4.

Thank you for the question, Gabriele. So first of all, we are planning to work, as you mentioned, with the number of people stable in the 2-year period up to 2028. On the other side, we are planning to increase our EBITDA marginality from 7.20 to 7.50%.

So that means we are planning to gain 30 basis points I believe that we are planning in a prudent way, if you want, our evolution of operating profitability in any case, higher than the path of revenue. So we are planning to grow revenues between 5% and 7.5% and the EBITDA between 10%.

So that means you should consider the mid of our average guidance, we will are planning to increase operating efficiency. I think it is possible to catch the upper range of the target of profitability as we did in the last fiscal year, we will work in this direction.

And I don't remember what the second question was about the business services in Q4, which registered a slightly softer top line growth than expected? What are the reasons behind that? In the business services in software integration in the business services. So in the business services, we have a slowdown and in due to some postponement of several contracts that will be balanced by a great start of '27 because we are planning.

We are starting with the revenue growth higher than 15% in the quarter while in the software system integration, we grew by around 7% in revenue and in operating profitability. That is the result of the great job we did in the engineering process of that business unit. And so the 2 effect will be balanced, the positive thing is that we are, as in the past, able to work to grant a good mix in terms of growth of revenues and growth of operating profitability -- and so if you want this sort of risk diversification because it is possible that a single business unit may underperform, but the other business unit may be overperformed.

So the result -- the net result as group is, in any case, overperforming our guidance, in particular, our market because I remember that we are growing organically and more or less with the pace that is over 2x the market trend. So that is the same.

Obviously, if we consider BAS sector because we are growing 3x the market trend in that case, but also in -- if you consider the mix of the last 3-year period for business services and software and system integration, we grew always by around 2x the market trend.

And so that is the job that we will continue to do in the new fiscal year.

Next question is from Aleksandra Arsova, Equita.

Two follow-up questions. So the first one, maybe on the guidance and on the first quarter trends. So if I got it correctly, you are seeing double-digit growth in the first are, at least in this first part. But your guidance for the fiscal year '27 is mid- to high single-digit revenue and EBITDA growth overall -- so it's just a matter of prudence?

Or do you expect some deceleration of growth in the coming quarters after the first one. So just a clarification here. And the second one, is on the growth rate recorded in the distribution business. So it's very strong. And I was wondering if you can give us some color on what is price effect and what is the volume effect? So how much it depends on the increase in memory prices and other component prices rather than increase in volumes?

Thank you, Aleksandra. So first of all, our guidance, I think that it's very positive that we started with a double-digit growth. So that means it is an opportunity to overperform our guidance in the full year. I think it is better to expect the Q1 before improving our guidance.

I remember that our new guidance is in line for FY '27 with the previous one, and we stand to 2028 in any case, a path of growth at a pace that is 2x the market, and that is fully organic. So with this kind of trend, that means we may rise our dividend distribution, our dividend per share to EUR 2 per share because we increased by 33% in that year because growing organically means a great value generation and cash flow generation. In terms of trend of our VAS sector.

So there is a mix effect because for the most of products, we don't have an increase of price. So the increase of price is impacting just see in PCs. In any case, this effect is more or less stabilizing. Our backlog is really strong also in the midterm.

And so there's a great opportunity in that area to continue to grow organically with the great value generation. We expect that the problem of price more or less is evolving and stabilizing.

And obviously, there is a general positive trend in not only in the data to data management, data center, driven by great demand of private infrastructure and data strategy that is enabling the adoption, but also in particular on the data protection also for the requirements of national compliance and security for example, driven by the adoption of the new regulation name and so that means a great set of opportunities to continue to grow in the coming 2 year period in that area.

I remember underline also our integration inside BAS of green because there's a growing demand of energy. A great opportunity to develop plant for producing energy from renewable sources. And so that this business unity is going really well. and with great perspective in coming to year period, considering also the level of price that is low.

And so there is an opportunity to develop plant for producing energy for renewable sources at very convenient price. And so that is another upside opportunity for our plan.

[Operator Instructions] Mr. Laschetti there are no more questions registered at this time.

Okay. Thank you very much for your participation in the conference call. As usual, we stay available for any additional information via mail. We remember that we are organizing also several meetings with our brokers coming and so we stay available also for one-to-one to explain better in more details our new industrial plan or FY '26. So we that. Thank you very much.

Ladies and gentlemen the conference is now over. You may disconnect your phones.

Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the SeSa Group Full Year 2026 Consolidated 9 Months Results Conference Call. [Operator Instructions]

At this time, I would like to turn the conference over to Jacopo Laschetti, Stakeholder Relations and Head of Sustainability. Please go ahead.

Good morning, and thank you for joining the SeSa Group presentation. Representing the group today are Alessandro Fabbroni, Group CEO; Caterina Gori, Head of Investor Relations and Corporate Finance and M&A; and myself, Stakeholder Relations and Head of Sustainability.

Earlier today, the Board of Directors approved the consolidated financial results for the 9 months of fiscal year '26 ended January 31, 2026. The corporate presentation is available on the SeSa website and will serve as a reference throughout today's conference call. Alessandro will begin by providing an overview of our key business developments and achievements.

Good morning, everybody, and thank you for joining our group presentation. In a challenging market that presents great growth opportunities driven by enterprise digitalization, widespread adoption of cloud and data protection and integration of AI and automation, SeSa is strengthening its market share by leveraging the role of leading digital integrator in Italy across the key areas driving digital transformation as cloud data management, cybersecurity, digital platforms and AI. The Italian digital market is expected to grow by approximately 4% in 2026 and '27 period, sustained both by demand for technologies and solution enabling AI and increasing need to integrate and manage environments that combine AI with data governance and data protection, fully compliant with national security and regulatory requirements.

In that scenario, SeSa accelerates its growth in line with the industrial plan guidance by combining technology platforms and vertical applications to drive value creation and innovation for enterprises and organizations with a growth path of 2x the Italian digital market trend. In the 9 months ended January 31, '26, SeSa reported consolidated revenue equal to EUR 2.7 billion, up 11.2% compared to reported figures and 7.5% compared to pro forma figures with an EBITDA equal to EUR 191 million, up 11.5% year-on-year compared to reported and 8.2% compared to pro forma '25, with an EBITDA margin increasing to 7.1% and the group EAT adjusted equal to EUR 82.1 million, up 12% year-on-year compared to reported figures and 8.8% against pro forma '25 figures. The third quarter '26 alone shows a strong acceleration in growth with consolidated revenue achieving EUR 1.1 billion, up 10.5% year-on-year and EBITDA rising to EUR 77 million, up around 12% year-on-year, group EAT adjusted achieving EUR 37 million, up 10.4%, driven by both higher operating profitability and a 20% reduction in quarterly net financial expenses.

Consolidated results show positive contribution from all group sectors in comparison with the 9 months '25 pro forma figures. ICT VAS grew to EUR 1.7 billion, up 7.2% year-on-year, fully organic with strong acceleration in third quarter '26 alone, up 14.4% year-on-year. Thanks to the increasing demand for technology and digital integration, driven by growing data management and protection linked to AI and automation adoption.

Green VAS achieved EUR 307 million, up 21% year-on-year, expanding its double-digit organic growth experience in first half '26 and driven by rising energy demand impacted by digitalization, AI and automation adoption. System integration delivered EUR 663 million, up around 2.5% year-on-year, showing a resilient performance despite slower demand in some military districts and the ongoing organizational reengineering process.

Finally, Business Services reached EUR 120 million, up 9% year-on-year, fully organic, supported by the development of digital platforms and vertical application for the financial services industry with a progressive focus on security, compliance, capital markets and finance segments. In the third quarter alone, revenues accelerated by 12.6% year-on-year. Thanks to the start of some multiyear contracts with major Italian banks.

Consolidated EBITDA increased by 11.5%, 8.2% compared to pro forma figures, achieving EUR 191 million with an EBITDA margin for 7.1% compared to 7.0% year-on-year, driven by the strong growth achieved by VAS, both Green and ICT and Business Services sectors and the progressive improvement of Software and System Integration sector quarter-by-quarter.

Segment's contribution to EBITDA were as follows: ICT VAS reported EUR 76 million, up 13% year-on-year with an EBITDA margin of 4.5%, up compared to 4.3% year-on-year; Green VAS delivered EUR 21 million EBITDA, up 22% year-on-year with a stable EBITDA margin at 6.8%; System Integration and Software recorded EUR 71.6 million, up slightly by 0.2% with an EBITDA margin of 10.8% compared to 11.1% year-on-year with a great return to growth in the third quarter alone, up 3.5%, with strong quarterly EBITDA margin equal to 11.6% compared to 11.3% in Q3 '25 alone and 9.9% in Q2 2026 alone. Finally, Business Services reported EUR 19.6 million EBITDA up around 9% year-on-year, with a stable EBITDA margin at 16% in third quarter 2026 alone. EBITDA grew by around 12% year-on-year, supported by new multiyear contracts with leading clients with a quarterly EBITDA margin of 17% compared to around 12% in second quarter '26 alone.

Consolidated adjusted EBIT reached EUR 145 million, up around 9% year-on-year after depreciation and amortization of tangible and intangible assets for EUR 40 million, up 13.5% year-on-year and provision for EUR 6.2 million. The reported EBIT was equal to EUR 112 million up 7% year-on-year after goodwill amortization for around EUR 30 million, up 15% year-on-year. Net financial expenses decreased significantly, down 20% in the third quarter alone, thanks to lower interest rates and group financial efficiency initiatives.

The consolidated EAT adjusted amounted to EUR 88.2 million, up 15% year-on-year compared to reported figures and around 10% compared to pro forma, reflecting the growth in operating profitability and the lower financial expenses, while group EAT adjusted achieved EUR 82.2 million, up 12% year-on-year compared to reported and around 9% compared to pro forma.

In the 9 months 2026, the group also delivered a strong cash flow generation sustained by organic profitability goal and a more efficient working capital management. The consolidated reported net financial position was equal to EUR 58 million, a significant improvement for EUR 33.7 million compared to EUR 92 million as of January '25. This performance reflects a great last 12 months operating cash flow net of EUR 150 million of investments last 12 months, of which EUR 90 million in the first 9 months of '26 with EUR 90 million related to M&A, of which EUR 55 million in the first 9 months '26 and after EUR 41 million in dividends and buybacks last 12 months. The consolidated net financial position, excluding IFRS liabilities, was active for EUR 147 million of net cash, up around EUR 40 million compared to EUR 108 million of net cash as of January 25.

Now after presenting the so positive set of financial results, I give the floor to Caterina to explain our M&A and shareholder value creation strategy.

Thank you, Alessandro. After years of significant M&A activity, our new FY 2026, 2027 industrial plan represent a strategic shift with a clear focus on simplifying the group and accelerating organic growth. We will capitalize on the capabilities and business model we have developed over the years to drive sustainable growth, supported by target CapEx in AI and automation and skill development to enhance efficiency, scalability and market penetration. Investments in the last 12 months amounted to approximately EUR 150 million, of which EUR 90 million were allocated to M&A. Specifically, in the first 9 months of FY 2026, total investments reached EUR 90 million with EUR 55 million attributable to M&A, reflecting a more selective and value-driven investment strategy. In the last 12 months, investments level remain elevated largely reflecting the fourth quarter of FY 2025 when the group completed approximately EUR 60 million of investments in that work alone. On the contrary, no significant M&A activity is expected in the fourth quarter of FY 2026, in line with the strategy outlined in the 2026-2027 industrial plan.

In addition, in the fourth quarter of FY 2026, SeSa will complete the sales of its 6.6% stake in Digital Value Holding for a price of approximately EUR 11 million. This investment is fully consistent with the industrial plan, which focuses on strengthening core activities and contemplates the potential disposal of nonstrategic assets. in line with the disciplined and optimized capital allocation approach while maintaining flexibility to evaluate selective noncore disposals during FY 2026.

In the 9 months of FY 2026, we further strengthened our international presence through 4 strategic acquisitions, all within the SSI sector. Two M&As consolidated in the first half of FY 2026 with total investments of approximately EUR 7 million. The first Visicon GmbH in Germany and SAP consulting specialists with EUR 5.3 million in revenues and Delta Tecnologías de Información in Spain, an AI-driven player in digital identity with EUR 2 million in revenues, but companies deliver EBITDA margin above 10%.

Two additional M&As with total investments of approximately EUR 15 million. Albasoft, a EUR 2.2 million revenue software company specialized in treasury and finance management solution. And 4IT, a Swiss cloud and managed service company with EUR 9 million in revenues. Both companies have been consolidated from November 2025, delivering a combined EBITDA margin above 10%. The deal structure is designed to ensure the long-term commitment of key people in the target companies with an entry valuation of around 5x EBITDA, adjusted for net financial position consistent with our standard approach. These acquisitions confirm our strategy, a selective approach of high-value M&A in Europe, together with continued strong investment in digital transformation areas such as AI, automation and digital platforms.

As outlined the 2026-2027 industrial plan, we are fully committed to generating strong cash flow and delivering solid returns to our shareholders as demonstrated by our latest shareholder distribution with a total 40% payout ratio consisting of dividend of EUR 1 per share, totaling EUR 15.5 million distributed last September. A share buyback program increased to EUR 25 million for FY 2026 compared to EUR 10 million in the previous year, completed last January 2026. With the cancellation of treasury shares representing approximately 2% of SeSa share capital. Considering the results achieved in the first 9 months of FY 2026 and the confirmation of the guidance at the upper end of the range of FY 2026, the conditions are in place to renew distribution plan for our shareholders also for FY 2027.

I now invite Jacopo to present our ESG results for the 9 months of FY 2026.

Thank you, Caterina, and good afternoon, everyone. I will focus my remarks on how sustainability and people management are supporting the execution and financial performance. Over the 9 months period of fiscal year '26, sustainability has been increasingly integrated into the way SeSa managed growth, execution and risk, in line with the target of the '26-'27 industrial plan. This integration improves revenue visibility, operational efficiency and long-term value creation. From a business standpoint, SeSa's role as a digital integrator is structurally aligned with long-term market drivers such as digitalization, cloud adoption, data management, cybersecurity, automation and energy efficiency. In this context, sustainability is not a separate dimension, but part of the framework that strengthens the relevance and resilience of our business model.

On the environmental side, our approach remains focused on control, accountability and compliance. Internally, we continue to monitor energy consumption, resource efficiency and environmental KPIs in a structured way, aligned with the CSRD requirements. Externally, the digital Green sector represents a growth area supported by increasing demand from enterprises facing higher energy needs linked to digital technologies and AI adoption with over EUR 300 million revenues in the 9-month period. This combination of internal governance and external market opportunity contributes to reducing transition and regulatory risk while supporting organic growth.

With regard to people and organization, the 9-month period of January 31, 2026, confirm a shift to a more selective and efficiency-oriented approach, consistent with the industrial plan of the group. Headcount reached 6,749 with moderate growth 3.3% compared to fiscal year '25, focused on priority areas such as AI, data science, cybersecurity and digital platforms. As in the past, our target is to create a sustainable long-term value for our stakeholders. Investments in skill development, training and digital tools are aimed at sustaining productivity and delivery capacity as the group scales and manage more complex projects. In this phase, people management is a key element in supporting execution, reducing operational risk and ensuring consistency between growth and profitability.

From a governance and capital market perspective, sustainability contributes to transparency, comparability and credibility. The confirmation of ESG ratings, including EcoVadis, Platinum, MSCI with BBB and CDP with B, reflects a governance framework that supports risk oversight, consistent reporting and alignment with long-term shareholders. These ratings are increasingly relevant for institutional investors as an indicator of government's quality and risk management.

In summary, sustainability increasingly embedded in the execution of the group industrial plan supports organic growth, operating discipline and risk management and contribute to strengthening the group's positioning as a long-term value creator. As we move into the final part of the fiscal year '26, this integrated approach remains fully aligned with the group's financial targets and strategic priorities.

Now I give the floor back to Alessandro for the final conclusions.

Thank you, Caterina and Jacopo. I will now share the final remarks and conclude our session. In a scenario where the need of technology and solution enabling AI meets the growing request for control, governance and protection of data and critical infrastructures, digital demand is strongly increasing. In that environment, SeSa transformation path as digital integrator is accelerating, implementing the industrial plan and evolving its platform that enables sustainable global companies that is data-driven, digital market-oriented and inspired by people. In the coming months, we will stay committed to the disciplined execution of our industrial plan, expanding skills and market share with a primary focus on organic growth and digital enabled adoption.

In the first 9 months of '26, we have achieved the target of 10% organic growth in profitability, thanks to the strengthening of our role as leading digital integrator, enabling AI automation and the digital transformation by combining technology platform and vertical application. The growth acceleration we achieved in the third quarter with revenues and profitability increase over 10% is the result of a clear strategic path to build a unique digital integrator in Italy, able of bringing advanced digital innovation directly into the real processes of companies and organizations.

Today, SeSa is ideally positioned to drive digital transformation and to support the adoption of AI across its customer set of over 40,000 clients. In particular, in the first 9 months of '26, we underlined the achievement of the following main strategic goals. First of all, the return to growth of ICT VAS with 7.2% organic growth in revenues and double-digit growing profitability, driven by the great acceleration in the third quarter alone with revenues up 14%, EBITDA increased by 22% and group PAT adjusted up by 41% thanks to our market position as leading digital integrator in Italy.

On the second hand, the 9.0% organic growth of Business Services sector supported by multiyear contracts with major customers. The 20% organic growth in revenues and profit of Digital Green VAS is another goal, fueled by strong business demand resulting from digitalization and the creation of a market leader, thanks to the business combination, the acquisition of Greensun last November '24. One of the main quarter achievement is the Software System Integration return to EBITDA growth progressively improved quarter-by-quarter, up 3.5% in Q3 only, with a quarterly EBITDA margin equal to 11.6% compared to 11.3% of Q3 '25.

Finally, we delivered a 40% payout ratio by executing the EUR 25 million buyback program approved by the last shareholders meeting and the 2% share capital cancellation, achieving at the same time, a strong improvement of our net financial position, up around EUR 40 million compared to January '25. In the light of the so positive 9 month '26 trend, the progressive acceleration quarter-by-quarter as well as the solid order intake in the beginning of fourth quarter '26, today, we confirm our guidance for the fiscal year ending April 30, '26 at the upper end of the previously communicated target range. That means revenues up by 5% to 7.5%, EBITDA up by 5% to 10% and group EAT adjusted up by 10% to 12.5% organic growth compared to pro forma figures. That means for 2026 fiscal year around EUR 3.6 billion revenues, EUR 260 million to EUR 265 million EBITDA and EUR 106 million to EUR 108 million of EAT adjusted.

We will continue to execute with great discipline in the 2026 and '27 industrial plan by focusing on organic growth and the group transformation as digital integrator, promoting the adoption of the digital enablers and inspired by a corporate vision oriented towards sustainable growth and digital innovation as we always did in our history.

Thank you for your kind attention. And now as usual, we open the Q&A final session.

[Operator Instructions] The first question is from Andrea Randone of Intermonte.

Congratulations for the results. I have a couple of questions. You already provided a positive comment on the guidance. Therefore, I think current trading, I mean, February and March performance has remained positive. But I wonder if you can detail us the main ongoing trends you are observing business by business. So this is the first question. The second one is a similar comment on the sector you operate. I mean there are some market worries in that in some areas, the technology can create a disruption. I wonder if you can provide us your comment on the main sector you operate if you are observing something more promising or that is taking you a bit more cautious looking forward?

Andrea, thank you for your questions. So first of all, we enter with a very strong backlog in the fourth quarter. So that means double-digit backlog for the VAS, both ICT and Green and the same for Business Services. In terms of trend of the single sector, we may observe a positive trend of VAS for the ICT, driven by the growing role as digital integrator that combine technology with platform and application that is so crucial and critical for the AI adoption. And so that means a growing request of data governance and protection that is boosting our demand for technology and in general, data governance and protection.

On the same time, it is very positive, the trend of the Green sector because of the transition, the energy transition is growing with a stable trend of the prices of the market. So that's very competitive to build environment and to establish plant for producing energy from renewable sources. And it is, in particular, important in a scenario like the scenario we are observing today. On the same time, it is positive -- it is improving the process of reengineering our Software System Integration that is reinforcing its path in cloud, cybersecurity and in general, digital integration to serve in the best way as possible the AI adoption and integration. So we observed in the Q3 an increase of EBITDA. So we grew by 3.5% in EBITDA. We reported an 11.6% EBITDA margin. So that is a positive sign that we expect to confirm in the fourth quarter.

So finally, Business Services trend is driven by the great award of new and several multiyear contracts with major Italian banks with several vertical applications in the field of compliance, capital market, finance. And it is very positive not only for the trend of the fourth quarter, but also for the new fiscal year 2027. So -- our view for the Q4 and also the new fiscal year is really positive with a very strong confidence in achieving our targets for our industrial plan.

The next question is from Gabriele Berti of Intesa Sanpaolo.

AI is increasingly mentioned as a demand driver across several business areas. I was wondering could you help us quantify how relevant AI-related revenues are today? And how do you see it weight to change in the next few years? And then more broadly, how is AI changing customer spending patterns? Are you mainly seeing incremental budgets or some reallocation from traditional IT spending towards AI-enabled projects?

Thank you, Gabriele, for your question. So when we presented 1 year ago our industrial plan, we underlined that the Italian digital market is going to grow by around 3.5%, 4% in coming 3-year period, and we underline the trend sectors. So AI is growing around 30%. It represents just EUR 0.5 billion on a total market of EUR 80 billion. but it is crucial because the integration of AI, obviously, is a stimulus for the other relevant sector. There's a greater and increased demand of data management and cybersecurity and the cybersecurity is a segment that is growing 15% in the 3-year period 2026 to '28, every year. On the same time, the data management is another crucial sector. So that means around 10% every year. So AI, but also the growing request of local data center power and digital sovereignty may represent, I mean, the 2 crucial drivers of growth.

And in terms of turnover, so the demand of AI may target EUR 1 billion, just EUR 1 billion, but every -- so that is typical of every disruption. So $1 of investment in the new technology way may represent $1 of investment in technology enabling the wave of innovation. So that is the same for AI that is stimulating the total demand of IT, more or less in line with what we expect. On the same time, in terms of demand of customers, growing demand absolutely in terms of data management and protection, compliant with the national security rules that is a new and I mean, a very relevant trend for a player like us that is operating as a digital integrator.

And so what we expect is to face a trend of the market like this in the coming 2-, 3-year period. But there's a very dynamic market that we may serve in the best way as possible, thanks to our strategy of becoming the leading digital integrator in Italy. And so it is not let me say, the performance of the fourth quarter -- the third quarter and what we expect in the fourth quarter will be the result of our ideal strategy and market position to serve our customers in that particular phase of market evolution.

[Operator Instructions] Mr. Laschetti, gentlemen, there are no more questions registered at this time.

Okay. Thank you very much, everybody, and thank you for your participation in the conference call. As usual, we stay available for any additional information we have made. Thank you very much.

Thank you. Bye-bye.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.

Good morning. This is the Chorus Call conference operator. Welcome, and thank you for joining the Full Year 2026 Consolidated First Half Results Conference Call of Sesa.

[Operator Instructions]

At this time, I would like to turn the conference over to Mr. Jacopo Laschetti, Stakeholder and Corporate Sustainability Manager of Sesa. Please go ahead, sir.

Good morning, and thank you for joining the Sesa Group presentation. Representing the group today are Alessandro Fabbroni, Group CEO; Caterina Gori, Investor Relations and Corporate Finance and M&A Manager; and myself, Stakeholder Relations and Head of Sustainability. Earlier today, the Board of Directors approved the consolidated financial results for the first half of the fiscal year 2026, ended October 31, 2025. The corporate presentation is available on the Sesa website and will serve as a reference throughout today's conference call. Alessandro will begin by providing an overview of the key business developments and achievements.

Good morning, everybody, and thank you for joining our group presentation. In the first half of 2026, Sesa started the implementation of the new '26-'27 industrial plant by evolving our data-driven digital market-oriented and people inspired platform for enabling the sustainable growth of corporates and organizations with a specific focus on organic growth and skills development in a challenging market scenario confirming growing demand for digitalization, Sesa has achieved its goal of consistent organic growth in revenue and profitability by strengthening our position in the key areas, catalyzing digital transformation such as cybersecurity, cloud, AI and automation, vertical and digital platform by enabling the value creation from our stakeholders.

The group's transformation from a technology to a leading digital integrator has improved with investment focus on skills development and the adoption of the so-called digital enablers. In the first half of 2026 on a consolidated basis, Sesa achieved revenues and other income for EUR 1.6 billion, up by 12% year-on-year, and EBITDA for EUR 114 million, up 11.4% year-on-year, and the net profit adjusted for around EUR 50 million, up by 17% year-on-year. On an organic basis compared to the half year pro forma, including the first half 2025 data of Greensun, consolidated revenues grew by 5.5% year-on-year, EBITDA by 6.0% year-on-year, and group net profit after taxes adjusted by 7.6% year-on-year. The second quarter '26 alone, show a great acceleration in consolidated revenues, which achieved EUR 755 million, up 16% year-on-year compared to reported years and 9.4% like-for-like compared to pro forma, and an increase of operating EBITDA by 16.6% compared to reported figures and 8.4% compared to pro forma. With a group [ EAT ] adjusted increase by 30% compared to reported figures and 17% compared to pro forma.

Consolidated revenues show positive contribution from all group sectors. ICT VAS, recorded EUR 939 million, up 2.1% fully organic with a great recovery compared to the decline in first quarter '25 with a down of 2.7%, driven by the high single-digit growth achieved in the second quarter, up by 8.1%. The positive November backlog trend up by 25%, will support positive trend for next quarters. Digital Green VAS reported EUR 210 million up by 26% compared to the first half '25 pro forma, driven by the extension of the double-digit growth achieved in the first quarter '26 and thanks to a strong performance in the copper market, driven by the increasing energy demand associated with digitalization and AI adoption, system integration and software sector reported EUR 420 million, up by 4% year-on-year, showing resilient performance despite the slowdown of demand in some made in Italy districts and the reengineering process affecting some business units.

And finally, Business Services achieved EUR 74 million, up around 7% year-on-year, extending its entirely organic job driven by the development of applications for the financial services industry. Consolidated EBITDA increased by 11.4% year-on-year, up 6% in comparison with the pro forma reaching EUR 114.4 million compared to EUR 102.7 million as of October 2024, with an EBITDA margin of 7.1%, broadly stable year-on-year, thanks to the growth trend in the VAS sectors, both Green and ICT and the Business Services one. ICT VAS reported EUR 42.7 million, up 6.6% with an EBITDA margin equal to 4.5%, up from 4.4% year-on-year. Digital Green VAS recorded EUR 14 million EBITDA, up 30% compared to the first half '25 pro forma with a 6.7% EBITDA margin compared to 6.5% year-on-year. System integration achieved EUR 43.4 million, down 1.9% with an EBITDA margin equal to 10.3%, reflecting the reengineering operations in some business units of the sectors with an expectation of EBITDA margin stabilization FY '26 at similar levels to FY '25.

Business Services reported EUR 11.6 million, up 6.6% year-on-year and 15.8% EBITDA margin stable compared to the previous year. In the second quarter 2026 alone, Business Services revenues accelerated with an 11% growth driven by the start of some multiyear contracts not yet translated into a positive impact on profitability. Consolidated EBIT adjusted amount to EUR 86 million, up 9.2% year-on-year, up 2.5% compared to the pro forma after depreciation and amortization for EUR 26 million, up around 14% year-on-year, and provision for EUR 2.7 million. Consolidated EBIT reached EUR 65 million, up 8.8% year-on-year after amortization of intangible assets relating to customer lists and know-how for EUR 17.5 million in line with the 2026, '27 industrial plant, net financial expenses show a significant decrease equaling 11% compared to first half '25 improving by 15.5% in the second quarter 2026 alone compared to the second quarter '25. Thanks to lower interest rates and the actions to enhance the group's financial management efficiency.

Consolidated EAT adjusted amounted to EUR 50 million, up 17.1% year-on-year and 7.1% compared to the pro forma, reflecting the growth in operating profitability and the reduction in financial expenses. Group net profit adjusted reached EUR 45 million, up 13% year-on-year from EUR 40 million in the first half '25, up 7.6% year-on-year compared to the pro forma 2025, while consolidated reporting profit to reached EUR 34 million, increasing by 19.4% compared to around EUR 29 million in the first half '25, up by 5.6% year-on-year compared to the pro forma figures. In the period under review, Sesa Group selected its M&A investment and improved its payout ratio in accordance with the new industrial plan. Group reported net financial position as of October '25, including EUR 208 million of IFRS debt was negative. That means net debt for EUR 119 million improving compared to EUR 122 million compared to the pro forma figures. Following last 12 months investment for EUR 140 million, of which EUR 37 million in the first half alone, including EUR 80 million of M&A investments, of which EUR 23 million in the first half. And after last 12 months buyback and dividend distribution of around EUR 35 million, which EUR 30 million in the first half 2026. Now I give the floor to Caterina for presenting our M&A strategy and the main resolution of the last shareholders' meeting and Board of Directors of today.

Thank you, Alessandro. After years of significant M&A activities, our new FY 2026, 2027 industrial plan represents a strategic shift with a clear focus on simplifying the group and accelerating organic growth. We will capitalize on the capabilities and business model we have developed over the years to drive sustainable growth, supported by target CapEx in AI, automation and skill development to enhance efficiency, scalability and market penetration. As a result, annual M&A investments are expected to decline to around EUR 30 million, following a selective valid driven strategy, while CapEx is expected to be roughly EUR 50 million per year.

In the first half of FY '26, we further strengthened our international presence through 4 strategic acquisitions, all within the SSI sector. Two M&As consolidated in the first half of FY '26 with total investments of approximately EUR 7 million. The first Visicon GmBH in Germany and SAP Consulting Specialists with EUR 5.3 million of revenue. And the second, Delta Tecnologías de Información in Spain, an AI-driven player in digital identity, we used 2 million in revenue. Both companies delivered EBITDA margin above 10% and 2 additional M&As with total investment of approximately EUR 7 million. Albasoft, a EUR 2.2 million software company, specialized in treasury and finance manager solution; and 4IT, a Swiss cloud and managed service company with EUR 9 million of revenue. Both companies will be consolidated from November 2025, delivering EBITDA margin above 10%. The deal structure is designed to ensure the long-term commitment of key people in target companies with an entry valuation of around 5x EBITDA, adjusted for net financial position and consistent with our standard approach.

These acquisitions confirm our strategy. a selective approach to high-value M&A in Europe, together with continued strong investments in digital transformation areas such as AI, automation and digital platforms. As outlined in 2026,2027 industrial plan, we are fully commitment to generating strong cash flow and delivering solid returns to our shareholders. As demonstrated at our latest shareholder meeting on August 27, 2025, where we approved a dividend of EUR 1 per share, in line with the previous year with EUR 15.5 million distribution completed last September. A significant increase in the share buyback program from EUR 10 million in FY '25 to EUR 25 million for FY 2026 to further strengthen shareholder value by raising the payout ratio from 30% last year to 40% this year. The shareholder meeting on August 27, 2025, approved a new EUR 25 million buyback program structured in 2 phases.

The first EUR 15 million phase completed October 9 and the second EUR 10 million phase beginning on November 6, 2025. Sesa held 142,706 treasury shares of October 1, 2025 and 246,868 as of December 12, 2025. Equal to 1.609% of share capital. Today, the Board of Directors approved the cancellation of an additional 157,522 shares, representing 1.03% on share capital which is part of the 1.609% treasury share mentioned above. And finally, the cancellation of treasury shares up to a maximum of 2% of Sesa share capital over the next 18 months. As of August 27, 2025, approximately 1% of shares has already been canceled. And today, we completed the plan of the cancellation of an additional 157,522 shares. Additionally, last October, we signed a binding agreement for the sales of the controlling stake held by DV Holding in Digital Value SPA subject to the fulfillment of certain conditions precedent, including Golden Power and antitrust approvals. Upon completion of the transaction, Sesa plans to disinvest a 6.6% stake in DV Holding for an expected gross amount of around EUR 11 million compared to an initial investment of around EUR 4 million. This transaction is expected to generate a positive impact of around EUR 7 million on [indiscernible] consolidated net profit.

This investment is fully consistent with the 2026, 2027 industrial plan. which focuses on strengthening core activities and provides for the possible disposal of nonstrategic assets, in line with the disciplined and optimized approach to capital allocation while leaving us room to evaluate selected nonstrategic disposals in FY '26. I now invite Jacopo to present our ECG (sic) [ ESG ] results for the first half of FY '26.

Good morning again, and thank you, Caterina. During the first half of the fiscal year 2026, we continue to focus on integrating sustainability in our strategy. monitoring at the same time, key ESG KPIs to measure progress and the achievement of the target set out in our sustainability plan. This approach allows us to keep a constant view on our environmental, social and government performance. and to guide our operational and strategic choices. Our sustainability plan for '26, '27 approved by Sesa Board of Director on last July, defines priorities targets and specific actions to integrate sustainability in our business model, contributing to the creation of long-term value for our stakeholders.

The generation, long-term valuation, sustainability and digitalization continues to be the core pillars of our strategy, defining the group's purpose. In this context, we are also delighted to announce that we have retained the EcoVadis Platinum rating, the highest level in the assessment model, which recognizes the group's commitment and achievements in the ESG field. This milestone further confirms the strength of our approach and reinforces Sesa's position as a reliable and responsible partner for customers, investors and stakeholders. In terms of HR management, we are facing a phase of consolidation with an increased focus on work and collaboration, and the progressive integration of digital enablers in our organization and the way we work. After a great improvement of our human capital over the last 4 years in the first half of fiscal year 2026, we increased the headcount by 1.7% compared to April 30, 2025 in line with our strategic industrial plan.

We continue to work to further improve our loyalty rate, reinforcing at the same time, our education, hiring and welfare programs. We provided specific measures to support parenting, diversity well-being and work-life balance, thanks to dedicated programs in favor of diversity and inclusion. Now I give the floor again to Alessandro for the final conclusions.

Many thanks, Caterina and Jacopo, I will now share the final remarks and conclude our session. Six months ago, we presented our new industrial plan aiming at group transformation by focusing on organic growth of core businesses, organizations streamlined, growing operating efficiency and market penetration by reinforcing our role as leading digital integrator and partner of the customers' digital transformation. In the first half of 2026, we worked strongly to deliver the main strategic targets of the industrial plan, driving organic growth across the group sectors, streamlining legal entities and in particular, adopting AI automation and digital enablers to boost operating efficiency, and group transformation both internally and towards our customers.

Thanks to our strategy, we strengthened our position as a leading digital integrator with a strong focus on cybersecurity, AI, automation, vertical application and digital platforms for the business segment. In particular, in the first half of 2026, we achieved a mid-single-digit growth in revenues and profitability, driven by the great acceleration of the second quarter 2026 with revenues improving by 9.4% year-on-year, EBITDA by 8.4% and group EAT by 17% like-for-like. A 20% organic growth in both revenues and profit of Digital Green VAS fueled by strong business demand, rising energy needs resulting from digitalization and AI adoption. The back to growth of ICT VAS up by 2.1%, revenue, 6.6% in EBITDA and by 15% in group EAT, of which in the second quarter only, a growth by 8.1% revenue, 16% in EBITDA, and around 13% at group EAT level, and 6.8% organic growth in revenues and 15% growth in profitability of the Business Services sector, with a decrease in marginality during the second quarter only due to the start of several multiyear new orders with major customers. A significant reduction in net financial expenses has been achieved [indiscernible] down by 11.6% in first quarter 2026 and by 15.5% in the second quarter 2026, reflecting the ongoing recovery trend driven by lower market interest rates, and the efficiency measures implemented in full year '25.

In light of our second quarter 2026 strategic achievements, and a disciplined way we have been executing in the new industrial plan, today, we confirm our commitment to deliver all growth targets we have outlined last July for the new fiscal year '2. That means 5% to 7.5% regarding of revenues, a 5% to 10% organic increase in EBITDA and around organic 10% increase in net consolidated profit confirming that we are on track to achieve our key value generation targets for our stakeholders. Considering the positive trend of our net financial position and cash flow generation, we have been delivering the planned 40% payout ratio by executing the new EUR 25 million buyback program approved by the last shareholders meeting and a 2% share capital cancellation. The goal for the remainder of the fiscal year is to execute with great commitment, the new 2026 and '27 industrial plan, in line with the targets and guidance we already communicated by focusing on organic growth, operating efficiency, the adoption of digital enablers and in particular, inspired by a corporate vision oriented towards sustainable growth and digital innovation. Thank you very much for your attention. Now we open as usual, the Q&A session.

[Operator Instructions]

The first question comes from Aleksandra Arsova of Equita.

One question on my end. Maybe some color on the guidance. So you seem confident to confirm the guidance, but maybe can you clarify which could be the elements that could potentially drive the guidance and the actual numbers, let's say, in the upper end or in the lower end? And then maybe, again, on the guidance in terms of EPS or net income adjusted that you said approximately plus 10% organic. If I remember correctly, in the original guidance, it was between 10% and 12%. So maybe just to clarify, where do you see this slightly lower expectation coming from?

Thank you, Aleksandra. So the full set of results that we achieved in the first half and in particular in the second quarter, show that we are absolutely on track to achieve the guidance. So that means considering the second quarter trends and the positive outlook on the backlog at the beginning of the Q3, we may consider the upper end of the guidance, the right target today. So that means not only for revenues and EBITDA, but also for net profitability.

In terms of outlook, in comparison with the start of our fiscal year, we are absolutely overperforming in the ICT distribution on one hand and in the Digital Green. We are more or less in line with the Business Services. So that means that for 60% to 70% of our group perimeter, we are overperforming. We are slightly lower in the guidance in the first half for software system integration, but the improvement that we achieved in the second quarter and the outlook on the trend of the backlog seems positive.

So that means we are on track to recover a positive trend in the second half of the year. So that means we may consider the average to upper end of the guidance, the reliable target for our fiscal year 2026.

The next question is from Andrea Randone from Intermonte.

I wonder if you can comment on the ICT VAS trend in the current quarter that is seasonally important. You mentioned the backlog up 25% in November. If you can comment on the trends you see if they are sustainable, consistent also for the remainder of the year. This is the first question. The second question is about CapEx. If you can confirm about EUR 80 million guidance, including M&A for the full year?

Thank you, Andrea. So first of all, about the trend of ICT VAS, we may confirm we entered very well in the Q3. We closed a very positive Q2 with growing revenues by 8.1%, an increase of EBITDA by 16% and around 15% in net profitability. We enter with a 25% growth in the backlog for Q3. So that means the beginning of December and in particular the month of November. So that is very positive indication to be able to work with a guidance of mid-single-digit growth for the full year.

In terms of CapEx, we confirm our guidance of EUR 80 million investment overall, including EUR 35 million of M&A and EUR 52 million to EUR 55 million CapEx. In the first half of 2026, we invested around EUR 40 million of which more or less EUR 20 million in M&A. So that means we are on track for this kind of trend.

If I may, just a quick follow-up on SSI. Can you -- it's a normal question, but can you comment once again the implications from AI on this business line?

So yes, the AI automation represents a driver that we are embedding in each of our delivering and also inside software system integration that is sector mainly focused on technology, digital business integration with the mix of consulting, software and digital services. So what we are doing is to increase our efficiency to introduce AI in some delivering. For example, the cyber security services and to, as a result, increase our efficiency to make available this efficiency for our customers.

Obviously, our exposure to AI erosion is not high, considering that we operating with proprietary software and technology and consulting services. And from our point of view, that is an opportunity more than risk to increase our EBITDA margin. And some of our investments will be focused on skill development and digital enabled adoption in that direction.

[Operator Instructions]

Mr. Laschetti, at this time, sir, there are no questions registered.

Thank you very much, everybody, for participating in this conference call and we wish you Merry Christmas, and we stay available as usual for any additional information about our results. Thank you very much.

Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.

Good morning. This is the Chorus Call conference operator. Welcome, and thank you for joining the Full Year 2026 Consolidated 3 Months Results Conference Call. [Operator Instructions]

At this time, I would like to turn the conference over to Mr. Jacopo Laschetti, Stakeholder and Corporate Sustainability Manager of SeSa. Please go ahead, sir.

Good morning, and thank you for joining the SeSa Group presentation. Representing the group today are Alessandro Fabbroni, Group CEO; Caterina Gori, Investor Relations and Corporate Finance and M&A Manager; and myself, Stakeholder Relations and Head of Sustainability.

Earlier today, the Board of Directors approved the consolidated financial results for the first quarter of fiscal year 2026 ended July 13, 2025 (sic) [ July 31, 2025 ]. The corporate presentation is available on the SeSa website and will serve as a reference throughout today's conference call.

Alessandro will begin by providing an overview of our key business developments and achievements.

Good morning, and thank you all for joining today's call. In the first quarter of the new fiscal year, SeSa returned to growth, confirming the achievability of the guidance of the new industrial plan. Overall, first quarter 2026 shows a solid recovery in consolidated revenues and EBITDA, along with a significant improvement in net profitability, supported by a substantial reduction in financial expenses and the improvement of the net financial position compared to April 30, '25, with a clear and progressive reversal of the main trends of revenues and profitability.

In the first quarter, on a consolidated basis, the group recorded revenues for EUR 846 million, up 8%, and EBITDA of EUR 61 million, up 7.2% year-on-year, and an adjusted net profit for EUR 29.8 million, up 6.4% year-on-year, with an adjusted group net profit equal to EUR 27.9 million, up by 4.5% year-on-year. The trend in [ human ] people shows 6,593 employees as of July 2025, with a moderate growth up 0.9% compared to April 30, '25, in line with our target of growing operating efficiency of the new industrial plan.

On organic basis, revenues increased by 2.2% year-on-year, EBITDA by 4% year-on-year and adjusted group net profit by 2.3% year-on-year compared with the pro forma figures as of July '24, restated to include the quarterly results of Greensun, company acquired last November '24.

Consolidated revenues by sector show a positive trend compared with fourth quarter '25. ICT VAS, with revenues for EUR 497 million, down 2.7%, entirely organic, showing progressive recovery from the 8.2% decline in fourth quarter '25, with return to growth expected from second quarter 2026, following the double-digit increase in the July and August 2025 backlog.

Digital Green VAS, with revenues for EUR 111 million, up 24.7% year-on-year, driven by 20% organic growth and strong business demand, supported by rising energy needs related to digitalization and the high adoption.

Software and System Integration sector with revenues for EUR 220 million, up 2.8% year-on-year despite a slower demand in some key Made in Italy districts and the re-engineering activities in some business units.

And finally, Business Services sector, with revenues for EUR 37 million, up by 3.0% year-on-year, which continues to grow entirely organically, supported by the increasing focus on digital platforms and vertical applications, and the expected acceleration in upcoming quarters, thanks to new agreements with some major Italian banks.

Consolidated EBITDA increased by 7.2% year-on-year, reaching EUR 61 million, up 4% versus the pro forma figures, and driven by the 20% growth of Green VAS and Business Services sector, while the ICT VAS and Software System Integration sector remained broadly stable year-on-year.

ICT VAS achieved an EBITDA of EUR 22.2 million, down 0.9% year-on-year, with an EBITDA margin equals to 4.5% as of July '25, up from 4.4% as of July '24. Digital Green VAS reported an EBITDA of EUR 6.2 million, up 18% year-on-year, with an EBITDA margin of 5.6% as of July '25, slightly down from 5.9% as of July '24.

Software and System Integration sector achieved an EBITDA of EUR 23.5 million, down 2.7% year-on-year, with an EBITDA margin equals to 10.7% as of July '25 compared to 10.8% in the full year '25. This reflects the re-engineering operations in some business units, with EBITDA margin expected to stabilize in full year '26, the same level of the full year '25.

Business Services reported an EBITDA equals to EUR 7.3 million, up by 25% year-on-year, with an EBITDA margin of 20%, driven by the progressive focus of revenues on proprietary digital platforms and vertical applications developed over the past 2 years. Adjusted consolidated EBIT was equal to EUR 47.3 million, up 4.2% year-on-year after depreciation and amortization of tangible and intangible assets equals to EUR 12.7 million, up 15% year-on-year and provisions for around EUR 0.7 million.

As expected, in the new industrial plan, net financial position show a significant reduction equals to 12% compared to first quarter '25 and equals to 36% compared to fourth quarter '25, driven by lower interest rates and efficiency measures in group financial management.

The first quarter adjusted consolidated net profit was equal to EUR 29.8 million, up 6.4% year-on-year, reflecting stronger operating profitability and a reduction in financial expenses. The adjusted group consolidated net profit reached EUR 28 million, up 4.5% year-on-year and up by 2.3% versus the pro forma figures as of July '24.

Finally, consolidated report in that financial position as of July 2025 equals to a net debt for EUR 65 million shows a significant improvement compared to EUR 75 million as of April 30, '25, thanks to operating cash flow in the quarter and lower investment compared to the previous year, with CapEx and M&A equal to approximately EUR 11.5 million in first quarter '26 alone.

Now I'll give the floor to Caterina to present our new strategy in terms of M&A and the main resolution of the last shareholders' meeting held on August 27, 2025.

After years of significant M&A investments, our new FY 2026, 2027 industrial plan marks a strategic shift, focusing on group simplification and organic growth. We will leverage the capabilities and business model we have built over the years to drive sustainable growth, supported by dedicated CapEx in AI and automation to enhance efficiency, scalability and market penetration. As a result, annual M&A investments are projected to decline to around EUR 30 million, guided by a selective value-driven strategy, while CapEx is expected to remain at approximately EUR 50 million per year.

In the first quarter of FY '26, we further strengthened our international presence through only 2 strategic acquisitions, with total investments of approximately EUR 7 million. Visicon GmbH in Germany, an SAP consulting specialist, with EUR 5.3 million in revenues; and [ Delta Informaciones], Spain, an AI-driven player in digital identity with EUR 2 million in revenues. Both companies delivered EBITDA margin above 10%. These acquisitions confirm our strategy, a selective approach to high-value M&A in Europe, combined with strong investments in digital transformation areas such as AI, automation and digital platform.

As outlined in 2026-2027 industrial plan, we are focused on generating strong cash flow and delivering solid returns to our shareholders, as demonstrated by our last shareholder meeting on August 27, 2025, where we approved a dividend of EUR 1 per share in line with the previous year, a significant increase in the share buyback program from EUR 10 million in FY '25 to EUR 25 million for the coming year, almost 3x the previous amount to further enhance the shareholder value by increasing the payout ratio from 30% of the last year to 40% of the current year. We have already started the program the day following its approval, underlining our commitment to create sustainable value for our shareholders. Then the cancellation of treasury shares up to a maximum of 2% of SeSa share capital over the next 18 months. As of August 27, 2025, approximately 1% of shares had already been canceled.

I now invite Jacopo to present our ECG (sic) [ ESG ] results for the first quarter of FY '26.

Good morning, and thank you, Caterina. In terms of sustainability path, in light of the new CSRD regulations and the new ESG standards, we confirm our strong commitment to value generation for our stakeholders, and we continue to invest in sustainability and environmental protection, supporting intensively our customers to be responsible on the management of natural resources. By the way, our Digital Green sector contributes significantly to reduce overall CO2 emissions, thanks to our leadership position, which allows to improve the sustainability profile and performance of our partners.

In line with our ESG growth path, our sustainability plan for 2026 and 2027 defines priorities, targets and specific actions to integrate sustainability in our business model, contributing to the creation of long-term value for stakeholders. On this point, our last results were characterized by a significant improvement in ESG performance and the achievement of some relevant sustainable development goals set.

We reinforced our group purpose that confirm our corporate values and goals of long-term sustainable value creation for the benefit of all stakeholders. Digital innovation, long-term value creation, sustainability and digitalization continues to be the core pillars of our strategy, defining the group's purpose. We also continue to extend our main group certification, confirming all of our ESG ratings.

In terms of HR management, we are facing a consolidation phase with an increasing focus on work and collaboration efficiency and the progressive integration of digital enablers in our organization and the way we work. After big improvement of our human capital over the last 4 years, in the first quarter of the new fiscal year, we increased the headcount by 0.9% only, in line with our strategic industrial plan. We continue to work to further improve our loyalty rate, reinforcing at the same time our education, hiring and welfare programs with wider and specific measure to support parenting, diversity, well-being and work-life balancing, thanks to dedicated programs in favor of diversity and inclusion.

Now I give the floor again to Alessandro for the final conclusions.

Thank you, Caterina and Jacopo. I will now share the final remarks and conclude our session. Three months ago, we presented our new industrial plan, aiming at group's transformation by focusing on organic growth of our core businesses, organization streamlined, growing operating efficiency and market penetration by reinforcing our role as a leading digital integrator and partner of customers' digital transformation.

In the first quarter of '26, we worked strongly to deliver the main strategic targets of the industrial plan, driving organic growth across the group sectors, streamlining legal entities and adopting AI and digital enablers to boost operating efficiency.

In particular, in the first quarter of FY '26, we achieved a 25% growth in profitability of Business Services sector, driven by the expanding market penetration of our proprietary digital platforms and vertical applications developed over the past 2 years, a double-digit organic growth in both revenues and EBITDA for the Digital Green VAS sector, fueled by strong business demand and rising energy needs driven by digitalization and AI adoption, recovery in ICT VAS trend compared to fourth quarter '25 with a double-digit backlog growth in the month of July and August '25, supporting an expected return to a year-on-year growth from the second quarter '26. And we also achieved a significant reduction in the net financial expenses, down 36% compared to fourth quarter '25, and down by 12% compared to first quarter '25, reflecting the ongoing recovery trend, supported by lower market interest rates and the efficiency measures implemented during FY '25.

Thanks to our strategy, we strengthened our position as a leading digital integrator with a strong focus on cybersecurity, AI, automation, vertical application and digital platforms. And at the same time, our Business Services sector continued to grow in the financial services industry, driven by rising demand for specialized vertical platforms and applications.

In the light of our first quarter 2026 strategic achievements and the disciplined way we have been executing the new industrial plan, today we confirm our commitment to deliver all growth targets that we have outlined last July for the new FY '26. This means a 5% to 7.5% growth in revenues, a 5% to 10% increase in EBITDA, and about 10% improvement in net consolidated profit, confirming that we are on track to achieve the main value generation targets for our shareholders.

Considering the positive trend of our net financial position improving by around EUR 10 million compared to April 30, '25, we are delivering the planned 40% payout ratio compared to the 30% of the previous year by executing the new EUR 25 million buyback program approved by our last shareholders' meeting. Now we will continue to execute the new industrial plan with strong discipline, focusing on organic growth, operating efficiency, the adoption of digital enablers and inspired by a corporate vision oriented towards sustainable growth and digital innovation.

Thank you very much for your kind attention. Now we open the Q&A session.

[Operator Instructions] The first question is from Andrea Randone, Intermonte.

My question is about the outlook you provided for the business segments. We can see that Digital Green is performing slightly ahead or I can say, ahead of initial expectations, while maybe Software and System Integration is a bit softer. So my questions are, what is the visibility you have on the most recent months? And if you can provide some indication on the full year profitability you are expecting compared to what we have seen in the first quarter? And any further comment on this -- the expected evolution of the business segment is welcome.

Andrea, thank you for the questions. So first of all, the trend of business segment is characterized by growing focus on proprietary digital platform. So that means, as a result, growing level of EBITDA margin that we achieved record 19.9% of revenues. So we grew by 3% in terms of revenue. We expect to accelerate the trend of revenues, considering also several main contracts that we won during the first quarter that we will account starting from the second quarter. So our guidance continues to be a double-digit growth in terms of revenues and in particular, in terms of profitability.

In the Digital Green, we capitalized the great effort we did in the last quarter. So the merger between PM Service and Greensun created a leading player in Italian market. We increased our market share in the business segment. There is a great demand of energy for renewable sources, considering the low prices that stabilized. So the trend of prices were stable in the quarter. So the lower level that we achieved over the past 1.5 years made very competitive the green energy solution, and there's a great demand from corporate organization in that direction. So the trend of the market is a trend of high single-digit growth, and we plan to be able to perform to continue to grow double digit, thanks to our competitive advantages and our market share we achieved in the Italian market.

The situation of the Software and System Integration in the quarter characterized by a recovery of EBITDA marginality in comparison to the fourth quarter because we performed with a 10.7% compared to 10.2%. We expect to stabilize this level around 10.8%, 11%. And so to start increase also in terms of EBITDA quarter-by-quarter. So our feeling is that the first quarter of that fiscal year was the most difficult to face because we are in the beginning of the industrial plan, but the actions that we perform, we will disclose most of their effect in the upcoming quarters. So that is the reason that we confirm the consolidated guidance for the whole group with a visibility level that increased a lot compared to 3 months ago.

[Operator Instructions] The next question is from Gabriele Berti, Intesa Sanpaolo.

First question on CapEx, considering you mentioned a shift in the CapEx mix used from M&A and internal development, where do you see CapEx in this fiscal year? And how much will be dedicated to internal development? And if you could also provide some color on which kind of projects are you developing?

And then second question, if you could elaborate on the driver behind the acceleration in the backlog for the VAS segment?

Gabriele, thank you for the question. Yes, in terms of CapEx, including M&A investment, we have around EUR 11.5 million in the first quarter, of which EUR 7 million M&A. So that means we are more or less on track because our full year indication is an indication of EUR 75 million, EUR 80 million, of which EUR 30 million, EUR 35 million dedicated to selected M&A. So the internal development refer mainly the so-called digital enablers adoption. It means AI automation and also the development of digital platforms and vertical application for penetrating the market and also for our organization.

In terms of trend of ICT VAS, first of all, we closed the quarter with an upturn in comparison to the trend of the fourth quarter. So we declined 2.5% compared to a decline of 8%. But in particular, we closed the quarter with very, very positive trend in the backlog. The backlog increased by over than 10% in July, over than 10% in August with a good start in September. And so considering also the trend we had in the previous year, now we expect to recover a positive increase in revenues starting from the second quarter.

I remember that our indication for the full year is to grow low single digit in terms of revenues and EBITDA and double-digit in terms of profitability. And in fact, in the first quarter, we increased in terms of net profitability in this sector by around 17%. So that means we are on track not only in terms of trend of revenues and EBITDA, but in particular also in terms of profitability and net income.

The next question is from Guy Breeden, Quilter Cheviot. Mr. Breeden, your line is open. Maybe your line is on mute? Unfortunately, we cannot hear you. Could you please open up your line? Maybe you are muted?

[Operator Instructions] The next question is from [ Paolo Cipriani ], a private investor.

Alessandro, can you hear me well?

Yes, very well, yes.

Yes. I have a question regarding the financial expenses that are improving and should be expected to improve further. Could you just maybe help me to understand whether a bit more just to say something a bit more on what they are related to. I mean just are they, for example, related to the acquisition of the previous small companies acquired in the previous years, I mean, related to the working capital management of these companies? And maybe just say something about the full effect of cost optimization initiatives that seems to improve these financial charges?

Thank you for the question. So first of all, we are capitalizing 2 main factors. The first one is the lower level of interest rates. I remember that in any case, we will benefit in a progressive way because several financial costs are accounted for in advance for 3, 6 months. And so we will benefit moving forward. The second one is obviously the improvement that we are achieving in working capital management and also in several other measures that we are introducing starting from 1 year.

So the lower number of legal entities, the adoption of cash flow and obviously planning and, generally speaking, the identification of planning and several targets for any group's legal entity. So the start of the fiscal year was positive because of the comparison with the previous year in terms of first quarter 2025 was a comparison with an improvement by 12%. But if we compare the first quarter '26 with the fourth quarter '25, we improved by 35%. So that is the reason we expect to accelerate in our progressive improvement quarter-by-quarter.

[Operator Instructions] Gentlemen, Mr. Laschetti, there are no more questions registered at this time. I turn the conference back to you for any closing remarks.

Thank you very much. As usual, we stay available for any additional information, and thank you very much for your participation.

Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.