SES AI Corporation Price & Performance (SES)

As of January 25, the group achieved a notable improvement despite the impact of EUR26 million of buyback and dividend distribution last twelve months along with approximately hundred and $30,000,000 in M and A and CapEx over the last twelve months. To sustain our future long term growth. So now I give the floor to the Catarina who will provide us an overview of our M and A programs and pipeline. Please, Katerina, go ahead.

Thank you, Alessandro. Over the past eighteen months, our M and A strategy has been focused on high margin and growth sectors as business services and software and system integration. In FY 2024 only, we complete 13 M and As. At the more than $110,000,000 revenue, progressively growing EBITDA [indiscernible] and bolting more than four sixty SKILL new accounts. In FY 2025, we realized 10 M and A's generating roughly $160,000,000 annual revenues and onboarding more than four ninety experienced professionals. We will now provide an overview of the latest M and A transaction by sector. In the business services sector, we announced two strategic deals, which contribute to enhance the exponential growth of the sector and build a unique software solution for More in detail in May 24, we acquired the majority stake of ATS, a leading Italian company in the digital platform for capital market. With annual revenue of $14,000,000 In September 2024, we announced the acquisition of Methode Finance a leading company specialized in offering software solution for the supervision of financial intermediaries. More than 200 clients, including some of the main Italian banking groups. Generating approximately $8,500,000 at the acquisition date. In terms of Digital Green, following the authorization of the Italian antitrust authority received last November, in according with the binding agreement already disclosed last October, in December 2024, we we announced the acquisition of the 66% of Green Sun, a key player in the renewable and energy saving sector which offers technology and specialized consultancy services.

From Q3 twenty twenty five, Green's sun figure [indiscernible] in the perimeter. Please note that Q3 twenty twenty five Digital Print sector achieved EBITDA margin of 7.2%. Representing an improvement of 0.7 compared to the Q1 and Q2 twenty twenty five. This positive trend is expected to be further consolidate with the merger of Greensand into PM Service, scheduled for early twenty twenty six. In the SSI sector, following several small medium sized acquisitions, including two international lemonades Smart Engineering in Germany and Boots system LBS in Spain, we have partnered enhanced our expertise in consulting, digital service and business application. Additionally, we acquired Medisoft, a leading Italian company specializing in consultancy and digital solution for SAP platform. With 160 highly skilled accounts. Annual revenue of EUR 15,000,000 and EBITDA margin of 8%. Further expanded our presence in this sector, we recently realized the following acquisition: On February 2025, we acquired a 52% of Ity Paz company with EUR 3,000,000 revenues EBITDA of approximately 15% and 25 skill accounts specializing in service Now platform consulting. Itipass utilizes artificial intelligence based solution to automate and enhance efficiency of enterprise and organization processes across various industries. On March 2025, we acquired the 60% of Innocor, a Netherland based company specializing in electronic design automation and simulation software solution with EUR 6,000,000 revenue EBITDA margin of approximately 10%, and 15%.

In terms of M and A process, we have recently intensified our activity towards high margin and gross support group's ongoing transformation. Consider that in FY 2025, we are going to realize approximately 20 internal mergers in the S and I sector only, of which 16 in the nine months. Our deals are typically structured as oriented towards a long term commitment of key people of the target company. [indiscernible] five times EBITDA, and the gradual integration within the group strategy business unit. [indiscernible] I also underlined that during the Q3, SeSa completed the $10,000,000 buyback annual program. As of today, the treasury shares consisting approximately 1% of the share capital at the end of the Q3 twenty twenty five. In addition, our parent company ITH, improved our state from 53 to 53.5 as a result of the purchases carried out in the month of December 24 and January 25. Now I'll leave the floor to Jakobko to provide an updated overview of our HR and sustainability path.

Thank you, Katerina. After a great improvement in our ESG performance, in the fiscal year 2024, In the nine months period, SeSa Group strengthened ESG programs and continue to increase their aimed at reducing environmental impact and consumption of natural resources. In the nine month period, as of January 2025, we continue our long term development of our workforce. Achieving 6,367 accounts. Up by 15% compared to the nine month period of 2024. With a growing focus on key growth areas, as technology, consulting and business application. And far improvement on loyalty rate. We continue to reinforce our education hiring and in particular welfare programs. With wider and specific measures to support parenting diversity, well-being and work life balancing. Thanks to dedicated programs in favor of diversity and inclusion. In terms of capability to create value for our stakeholders, our last fiscal year results was characterized by a significant improvement in ESG performance and the achievement of some relevant sustainable development goal 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, value creation in the long term sustainability and digitalization continues to be core pillars of our group strategy.

I also remember the award achieved at the end of twenty twenty four, with the inclusion of SeSa among the top Italian companies in the most climate conscious companies ranking. The ranking identifies the 175 Italian companies that have achieved a significant reduction in the intensity of emissions. Over the period twenty twenty one twenty twenty three, The companies ranked were selected from a sample of more than 600 Italian companies. Once again, this award highlights the longstanding commitment that our group has always placed on the issues of sustainable growth and value generation. Finally, underline the confirmation of our ESG ratings in the high level of the range. As Ecovatti's gold medal [indiscernible] BBB and Carbon Disclosure Project [indiscernible] Now I give the floor again to Alessandro for the final conclusions. Thank you, Jakob Paul. So the results of January 25 achieved in a challenging scenario have confirmed our resilient path and capability to extend our industrial development gaining a value market share consolidating years of consecutive double digit growth in revenues and profitability driven by all growth sectors, the Q3 twenty twenty five shows a very positive SWIFT with a 12% growth to revenues and 2.6% increase in EBITDA And now we target to grow double digit both revenues and profitability during the Q4.

In the light of the positive trend of Q3, today we confirm the outlook for the full year ending 04/30/2025, with a mid single digit growth in revenues EBITDA thanks to the expected growth in Q4 and the positive trend ongoing in the business services sector as well as the digital green. [indiscernible] We underline that for the FY '26, we are working our group's new industrial plant targeting results in line with the market consensus with a nice single digit growth of revenues and profitability targeting higher than €3,600,000,000 revenues and €270,000,000 EBITDA. [indiscernible] We will continue to move forward in our group's industrial transformation path increasingly oriented to consultancy digital platform and technology innovation across the main drivers of evolution as digitalization AI, cybersecurity and digital platforms will swing sustainable and long term value generation for our stakeholders taking also the opportunity of an IT market now is recovering into a [indiscernible] after the deceleration of the year 2024. [indiscernible] So thank you for your attention. Now we stay available as you roll forward final session.

Thank you. This is the callers call conference. Operator, we will now begin the question and answer session. First question is from Andrea Randone in Termontae. Please go ahead. Thanks, Silvia and thank you for taking my questions. The first one is on the Business Service segment. You performed very, very well I wonder if you can give us more color about the achievements business achievements in this segment and also on a longer term perspective what is your ambition The second question is about Software and System Integration segment. You mentioned a number