Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the full year 2025 consolidated results conference call of SeSa. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on that telephone. At this time, I would like to turn the conference over to Mr. Jacopo Laschetti, Stakeholder Relations and Head of Sustainability of SeSa. Please go ahead, sir.
Good afternoon and thank you for attending the presentation. Representing the group today are Alessandro Fabbroni, Group CEO, Caterina Gori, Investment Relations and Corporate Finance M&A Manager, and myself, Stakeholder Relations and Head of Sustainability. This morning, the Board of Directors approved the consolidated financial results as of April 30, 2025, and the new investment plan for the fiscal year 2026 and 2027. The corporate presentation is available on the website and will serve as a reference throughout today's conference call. Alessandro will begin by providing an overview of our key strategic achievements.
Good afternoon and thank you all for joining today's call. Today, we've released the group's full year results as of April 30, 2025, which sees a closed year of significant transformation and considerable investments, reaffirming our ability to grow even in a challenging market condition and confirming our role as a strategic partner for the digital transformation, consulting, and vertical applications for businesses and organizations. Considering the pro forma consolidation of Bringstar in the first half, totaling revenues for EUR 83 million, the FY 2025 closed with revenues equal to EUR 3.36 billion, up 4.6%, and an EBITDA of EUR 240.7 million, increasing by 0.5% compared to the previous year.
In Q4 only, revenues increased by 3.1% and EBITDA by 8.2%, confirming the positive trend of SeSa in the second half of the year, which saw revenue growth by 7.6% and an EBITDA increase of 5.2%, reversing the moderate 2% decline experienced in the first half and in October 2024. The FY 2025 performance consolidates the group's solid growth established throughout the 2020-2024 period, during which revenues increased from EUR 1.78 billion to EUR 3.20 billion and EBITDA moved from EUR 94.5 million to EUR 239.5 million. Over the year, we increased investments in key areas driving digital transformation, such as AI, automation, digital platforms, and strengthened our capabilities, closing the fiscal year with 6,500 people, up 15% year on year. Growth was mainly concentrated in the high-potential sectors such as Business Services, green, and Software and System Integration, with approximately 66% driven by M&A completing FY 2025.
By segment, revenues performance was as follows: ICT Value-Added Solutions reported EUR 2.075 billion, down 3.4% year on year, with a slight recovery in the second half, up 0.3%, and a 6.4% decline in Q4, reflecting ongoing challenging market conditions and entirely organic performance. Digital Green VAS recorded a great EUR 344 million, up 43% year on year, 110% in Q4 only, driven by the consolidation of GreenSun from the beginning of the fiscal year and by the return to a double-digit organic growth in Q4 only as planned. Software and System Integration sector achieved EUR 876 million, growing 6.4%, driven by 3.5% growth in the second half and the positive 7.2% growth in Q4 only, despite unfavorable market conditions, with approximately 50% of the growth attributable to external leverage.
Business Services achieved EUR 154 million, up around 35% year on year, with roughly 65% organic growth, boosted by the expansion in digital application and platforms dedicated to the financial services industry. Consolidated EBITDA reached EUR 240.7 million, up 0.5% year on year, compared to EUR 239.5 million in the previous year, supported by a solid acceleration in the second half, growing 5.2%, and in particular, in Q4 only, growing by 8.2% year on year, and mainly driven by the strong performance of the Digital Green and Business Services sectors. In Q4 2025 alone, EBITDA stood at EUR 64 million, up 8.2%, with a margin of 7.6%, reflecting the solid organic recovery of Digital Green and the continued acceleration of Business Services. As we now walk you through the EBITDA performance by business sector, I'd like to include an analysis and values across the group.
ICT Value-Added Solutions (ICT DAS) reported an EBITDA of EUR 90 million in FY 2025, down 5.8% year on year and 3.5% in the second half. Q4 only showed a strong recovery with a 13.9% increase year on year. The EBITDA margins equal 4.3% for the full year compared to 4.4% in the previous year, by reaching a positive 4.6% in Q4 only. Digital Green VAS delivered an EBITDA of EUR 24.5 million, up 13.6% in FY, by 80% in the second half, and increasing by 186% in Q4 only. The FY margins stood at 7.1% compared to 9% in FY 2024, rising to 8.1% in Q4. This performance reflects the full year consolidation of GreenSun's pro forma in the first half reported in the second half, with organic growth of 7% in Q4 only.
Software and System Integration reported an EBITDA of EUR 95 million, down 5% year on year, 7% in the second half, and 6.8% in Q4 only, with an EBITDA margin of 10.8% compared to around 12% year on year, reflecting the continued investments in skills, technologies, and re-engineering process, with margin stabilization expected from FY 2026. Finally, Business Services recorded an EBITDA of EUR 27.3 million, up 51% year on year, 50% in the second half, 35% in Q4, with an EBITDA margin of 18% compared to 16% year on year, supported by revenue growth and customer expansion in digital platforms and vertical applications. The adjusted consolidated EBIT amounted to EUR 185 million, declining 3.8% year on year, with a recovery in Q4 only, showing a positive increase by 0.5%.
These results include an amortization of tangible and intangible assets from EUR 50 million, up 25% year on year, and provisions for EUR 5.1 million, down 21% year on year, driven by the high quality of accounts receivable, supported by the without recourse factoring and securitization programs for a significant share of the business perimeter. The adjusted group net results equals EUR 96 million, down 9.9%, with the second half contributing EUR 64 million, with a 1.9% decrease year on year. This performance reflects the combined effect of the stabilization of net financial expenses in the full year, increasing on a full year basis to EUR 40 million compared to EUR 37 million, while at the same time showing a 10.2% improvement in Q4 only, with significant improvements expected also in the coming quarters.
On the other hand, foreign losses for EUR 1.4 million in Q4 as a result of the stark appreciation of the EUR/USD rate in April 25 and the other impact on minorities. The economic and financial results achieved confirm our solid financial position. As of April 30, 2025, the group's net cash position, excluding IRS liabilities, stood at EUR 158 million, down from EUR 211 million as of April 30, 2024, reflecting significant investments for around EUR 160 million and dividend by debt distribution started at approximately EUR 30 million. Operating cash flow in FY 2025 was approximately equal to EUR 120 million, supported by a solid operational performance and effective working capital management. Credit risk mitigation tools, such as factoring and securitization within the DAS segment, helped maintain IRS equality, including the EUR 233 million of IRS liabilities related to the fair payments to minority shareholders and lease obligation under IFRS 16.
The reported net financial position was negative for around EUR 34 million compared to positive of €2.7 million as of April 30, 2024. Now, I give the floor to Caterina to present the main resolution of the accounting shareholders meeting of next August 27.
Thank you, Alessandro. Based on these results, at the next shareholder meeting of August 27, we would propose to approve a dividend of EUR 1 per share, consistent with FY 2024, and in response to investor feedback, we are significantly increasing the share buyback program from EUR 10 million to EUR 25 million for the coming year, almost creating it to further enhance shareholder value and demonstrate our confidence in the group growth prospects. We believe that the increase in the buyback plans represents a valuable opportunity for our shareholders, considering both the weak performance of the stock market over the past 12 months and the upcoming 2026-2027 industrial plan, which is mainly focused on organic growth and cash generation. Jacopo will now take us through the ESG results for FY 2025.
Good afternoon again, and thank you, Caterina. In recent years, we have progressively improved our ESG performance, consolidating our strong commitment to value generation in a responsible way, in line with our group purpose to create long-term sustainable value for stakeholders, promoting innovation of companies and organizations and the well-being of people. Also, in light of the new CSRD regulations and the new ESRS standards, our ESG policies are aligned within the national best practice, with a strong focus on governance, environmental respect, human resources, welfare management, and economic development. In the fiscal year 2025, we're reporting again a strong improvement of our environmental performance. We decreased the waste per capita, down 78% year on year, with an increase in the share of green electricity purchased from third parties, about 95%, including self-produced clean energy, and we reduced the electricity consumption per capita, down 5% year on year.
In terms of sustainability governance, we extended our quality and compliance group certifications, confirming at the same time our ESG ratings, as Eco-Buddy Gold Medal, MATI Triple B, and Carbon Disclosure Project with a B score. In line with our ESG growth path, today we also approved our sustainability plan for 2026-2027. Our strategic documents have defined priorities, targets, and specific actions to integrate sustainability in our business model, contributing at the same time to the creation of long-term value for stakeholders. The main ESG targets of the plan are focused on increase of the share of the renewable energy with a target of 97% in fiscal year 2027, decrease of scope one and two emissions per capita, and total emissions to revenues with an expected decrease of 5% in the next two years, and to maintain at least stable the gender mix with a threshold equal to 30%.
Now, I give the floor again to Alessandro.
Today, our Board of Directors has also approved the growth industrial plan for the fiscal year ending April 30, 2026 and 2027. Building on the pro forma base of 2025, the plan was developed between April and June 2025 with the active involvement of all operating divisions and key people across the group by incorporating also some indications raised by our institutional shareholders. Our plan is focused on targeting strong organic growth, adopting a more selective M&A strategy by improving cash flow generation, supported by our operating efficiency and market penetration driven by the progressive adoption of the so-called digital enablers, such as AI and automation, digital and vertical platforms. This approach will strengthen our position as a leading digital incubator and digital transformation partner of the business segment, focusing on cybersecurity, AI, automation, vertical applications, and digital platforms.
Meanwhile, our Business Services sector will continue to expand its presence in the growing financial services market, boosted by rising demand for vertical platforms and applications. Thanks to these initiatives, we expect around 5% revenue growth and 10% profitability increase over 2026 and 2027 full year, driven by organic expansion across our group sectors, particularly Digital Green and Business Services, and the return to growth in ICT Value-Added Solutions after a year of moderate decline. Our strategy also includes the simplification and re-engineering of some group's operations and the possible divestment of non-core assets to streamline the group and enhance the focus on our core business. I give the floor to Caterina for providing some more details about the main assumptions and targets of our industrial plan 2026-2027.
As Alessandro mentioned, the industrial plan will primarily focus on organic growth and business transformation, with the following main growth targets. Following our significant investment made over the past five-year period, we will focus on group simplification and organic growth. We targeted M&A investments in digital enablers, re-engineering process, and digital platforms to boost our growth in foreign countries. A positive market outlook for the digital industry, with an expected average annual growth rate higher than 3% and a mid to high single-digit growth forecast in the green photovoltaic market for corporates and organizations, driven by rising energy requirements. Revenue are expected to grow in the range of 5%- 7.5%, both in FY 2026 and 2027, targeting EUR 3.7 billion-EUR 3.9 billion in FY 2027.
EBITDA is expected to grow between 5% and 10%, both in FY 2026 and 2027, targeting EUR 265 million-EUR 291 million in FY 2027, with an EBITDA margin increasing from 7.2% in FY 2025 to 7.5% in FY 2027. Group ERP adjusted is expected to increase in the range of 10%- 12.5%, both in FY 2026 and 2027, targeting EUR 116 million-EUR 121 million in FY 2027. We also expect to benefit from lower financial charges from approximately EUR 5 million-EUR 10 million per year, both in 2026 and 2027, driven by lower interest rates and cash flow generation. We expect a moderate growth in accounts, reaching around 7,000 coworkers in 2027.
By segment, we expect to see annual revenue and profitability growth between 10% and 15% in Business Services, high single-digit growth in SSI and DG VAS, and a recovery with low single-digit increase in I CT DAS. We are targeting an annual operating cash flow of approximately EUR 150 million and plan to invest around EUR 80 million per year, mainly to support organic growth and the development of digital enablers, such as AI, automation, and digital platforms. The adoption of AI and automation technologies, combined with the creation of an internet competence center, will be a crucial strategic driver to transform our operation and increase market penetration.
To give you a clearer picture of the opportunity, the Italian data and AI market is currently valued at EUR 935 million in 2024 and is projected to experience substantial growth, reaching EUR 1.25 billion in 2025, up 34% year on year, and EUR 1.7 billion in 2026, up 33% year on year. As a result of the action of our industrial plan and our strong focus on organic growth, we plan to increase our payout ratio, including the buyback program, to 40% for FY 2026 and FY 2027, up from 30% in FY 2025. As part of this approach, we have proposed to raise our share buyback program to EUR 25 million compared to EUR 10 million last year, as detailed in the resolutions submitted to the shareholder meeting. Now, I'll give the floor back to Alessandro for the closing remarks.
The FY 2025 has been a year of deep transformation and successful completion of a phase of significant investments for our group. Looking ahead, our 2026 and 2027 plan sets a clear path toward renewed profitability, driven by targeted strategic actions, disciplined execution, and a strong focus on growing operating efficiency. Our recent strategic investments, particularly in Digital Green and Business Services, are delivering good double-digit growth, while our historical core businesses are expected to recover organic growth, both in revenues and profitability. The new M&A approach will be selective and value-driven, targeting high-impact opportunities that will improve our capabilities, generate tangible synergies, and reinforce our leadership in key markets. At the same time, we are accelerating investments in AI and automation, digital enablers to achieve greater efficiency, scalability, and market penetration.
Our strategy will include, following the group simplification, targeting divestment of non-core assets to streamline the organization and enhance focus on our core businesses. In summary, we are entering the new phase of evolution, more focus supported by a rationalized structure and better position to deliver sustainable and profitable growth, thanks to strengthened execution capabilities and clear strategic vision. With the new industrial plan, we have laid the foundation for a solid organic growth in 2026-2027, targeting 5%- 7.5% annual growth in revenues, high single-digit growth in operating profits, and double-digit annual increase of net profits by reinforcing our market leadership and sustainable value generation. The positive trend of EBITDA in Q4 2025, growing by 8.2%, driven particularly by Business Services and Digital Green, with a good start of Q1 2026, confirms the achievability of our plan.
Considering the economic and financial progressive improvements driven by our new industrial plan, we will decide to improve the payout ratio for our shareholders from 30% to 45% by increasing in a significant way our buyback plan. Above all, in the face of a so great acceleration of digital evolution and sharp adoption of AI and automation, people will remain crucial at the core of our vision, driving sustainable growth and long-term value creation. Thank you for your kind attention. Now we open the Q&A session.
Thank you. This is the Chorus Call conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. We will pause for a moment as callers join the queue. The first question is from Andrea Randone of Intermonte. Please go ahead.
Good afternoon and thanks for taking my questions. I have two questions. In this quarter, SeSa reported growing numbers compared to one year ago, but still reported numbers were a bit lower than previous indications. Can you help us in understanding what were the business areas performing slightly below expectations and what drove the gap in the quarterly cash flow? This is the first. The second question is forward-looking. What are current market conditions and how was your performance in May and June? Are you on track with full year guidance? Thank you.
Good afternoon, Andrea. Thank you for your call. First of all, we perform under the status in Software and System Integration because we, in particular, in terms of EBITDA, have a good recovery in revenues. Revenues increased by around 7% in Q4 only, but we continue to work with a low EBITDA margin compared to the previous year. That is one area. The other area in VAS ICT , because we perform well in terms of EBITDA, but not so well in terms of revenues because we have a down by 5% in comparison with the previous quarter Q3 when we increased by 110%. The combined effects generate penalties, so a shortfall in comparison with the previous statistics. In any case, we performed well in the other two sectors.
Green, because in the green as planned, we recover an organic growth and also Business Services that continue to improve its marginality. Entering in the new fiscal year, we have a good performance in green and good performance also in Business Services and expectation to perform growing in low single-digit in IT, ICT VAS yes, and to perform with a mid-life single-digit growth revenues in System Integration. The plan that we discussed today doesn't plan any increase now in the EBITDA marginality, any significant increase in EBITDA marginality of Software and System Integration. Just to maintain the level of marginality that we at the end performed in the full year 2025. Positive outlook for Q1.
Thank you. Thank you very much.
As a reminder, if you wish to register for a question, please press star and one on your telephone. Once again, if you wish to ask a question, please press star and one on your telephone. The next question is from Aleksandra Arsova of Equita. Please go ahead.
Hi. Good afternoon. Thank you for taking my questions. I have a question on my end on M&A strategy and also on past M&A. How is going on the integration of past M&A, which was one of the main issues you were trying to improve over the past quarters? On the future, what do you expect in terms of M&A strategy for the coming 12 months and over the planned period? Thank you.
Thank you, Aleksandra. It's clear that the new industrial plan represents a new phase for our evolution because, first of all, for the first time, we are providing figures that don't include the effect of the M&A. We are considering just the M&A already announced as of today. As a result, we reduce the amount of investment we planned from EUR 150 million, so this is the average of the previous five-year period every year, to around EUR 80 million. The reason is, first of all, our growth perimeter that we developed thanks to the strategy of M&A in the last five-year period.
Now the plan is going to focus group operations on our four core businesses and to target organic growth thanks to the digital enablers' adoption, initial our organic growth, organic perimeter, and as for the integration of the previous M&A thanks to the re-engineering process that we are performing, in particular in the area of Software and System Integration. We will address that for sure, growing operating efficiency that is not included in our forecast of the business plan, in particular in the first year. There's an opportunity to take profit from this job that we are going to make. We started in the previous two to three quarters during the FY 2025.
Thank you, very clear.
Thank you.
Once again, if you wish to ask a question, please press star and one on your telephone. As a reminder, if you wish to register for a question, please press star and one on your telephone. For any further questions, please press star and one on your telephone. Mr. Fabbroni, there are no more questions. Excuse me, there's just one more question, a follow-up question from Andrea Randone of Intermonte. Please go ahead.
Yes. I see there is time for another question. I'd like to ask you about the Business Services and also the Software and System Integration. In these two segments, usually you have quite good visibility. If you can comment on what are the main projects that you are expecting for this year, and something that can support the guidance you have just provided, more in qualitative terms about clients and sector products, or something like that. Thank you.
Thank you for the question. First of all, in the Business Services, we are improving our perimeter of operations and adding new major customers, not only in the banking area, but also in the insurance one. It is positive because there's an opportunity to extend our digital platform adoption and to continue to grow. The expectation that we included in our group industrial plan is to grow around 15% in revenues and EBITDA, and to maintain the 18% EBITDA margin. We developed a full set of digital and vertical applications for banking, from treasury to wealth management up to the so-called reg tech, so regulation application for compliance. That is an area of rising growth in that phase of evolution. We are dealing with some major Italian banks for improving our offering through our penetration. There is full visibility of the expectation and the trend for FY 2026.
In terms of Software and System Integration, two, three main areas for us would be, first of all, cybersecurity because we developed a team that is operating across Europe with a great market penetration. There is a tremendous opportunity coming from the new framework regulation named in Italy, NIS2, in Italian language, with additional investment that will be necessary for any company or organization to be compliant and, in particular, to be able to be safe in front of potential cyber risk. Inside the cybersecurity business unit, we already adopted the AI technology. As a result of this adoption, we improve a lot the quality of the work life of our people. Also, we increase a lot of operating efficiency through a project that we call Agida. That means to adopt detecting AI and automation capability inside our security operations center.
Other areas of development, obviously, consist of data science, AI, and automation. The mantra will be to put AI and automation everywhere. In any of our delivery and any of our offering towards customers, in particular, not only inside some of the most relevant vertical and digital platforms that in the Software and System Integration we develop towards the main Italian districts.
Thank you again.
Thank you. Thanks, Andrea.
The next question is from Guido Crivellaro of Eurizon. Please go ahead.
Good afternoon. May I ask you to give a bit of detail? You're seeing a decrease in the net financial position of about EUR 53 million or EUR €70 million. It depends on if I read or not. I'm not understood exactly the different voices that have impacted the net financial position. The CapEx, what has been spent for M&A, the impact of the working capital. May I ask you to give a breakdown of the different voices? Thank you.
First of all, the difference between the two relations depends on IRS debt, in particular, some debt towards minorities that we reported, that we accounted for, referring to a particular Business Services sector that is improving and growing really well. We underline the expectation of growing in terms of EBITDA of this specific sector. The fiscal year was a fiscal year with investment higher than expected because we closed with EUR 160 million of investment compared to around EUR 130 million of the previous year and a new target of EUR 80 million for the new fiscal year 2026. Another driver was the dividend distribution of partner buyback that we increased, and it's about EUR 30 million. That combined with EUR 162 million of investment reached the amount of EUR 190 million. We generated around EUR 120 million-EUR 125 million of cash in terms of cash from operations.
We have a worsening of EUR 60 million-EUR 70 million in terms of net financial position reported and around EUR 50 million in terms of net financial position. In terms of working capital management, we had a decline because we moved from around net working capital equal to zero to net working capital for about EUR 25 million. We recovered in comparison with the situation of October because as of October, the gap in comparison to the previous year was a gap of about EUR 100 million, more than EUR 100 million. Now it's about EUR 50 million. We have clear targets to improve net financial position in the coming year and to increase our cash flow generation from EUR 120 million to EUR 150 million.
Obviously, we will benefit in the new fiscal year also from the reduction in net financial services that improved by 10% in Q4 only, and we expect to improve in a significant way in the current quarter.
The next question is from Simon Bentlage of Discover Capital. Please go ahead.
Yeah, thanks. I would just like to clarify on the EUR 80 million of investments that you are planning, down from EUR 150 million, I think, in the past. Are those split into CapEx and those investments into M&A?
Yes. Most of these investments will be CapEx and also internal development of digital platforms and vertical applications with the adoption of AI, automation, and the so-called digital enablers. We identify roughly EUR 30 million from M&A. In any case, we don't reflect the potential increase from M&A in our figure in terms of 2026 to 2027 space.
Understood. Thank you.
Thank you.
Once again, if you wish to ask a question, please press star and one on your telephone. For any further questions, please press star and one on your telephone. Mr. Fabbroni, there are no more questions registered at this time.
We thank you very much for all participants, and as usual, we stay available with our team for additional information. Thank you very much, and good afternoon.
Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.