Half Year 2024 SoftwareONE Holding AG Earnings Call

Okay.

Speaker Change: [music]. Please note anyone who wishes to ask a question during the conference Press Star and one on the Touchtone telephone you will hear we're told to confirm that you back to the queue. If you wish to remove yourself from the question queue.

Unknown Executive: Please note, anyone who wishes to ask a question during the conference may press star in one of the touch-tone telephone. You will hear it on to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star in two.

Operator: Please note, anyone who wishes to ask a question during the conference may press star and 1 on the touch-tone telephone, and Wolfgang Amadeus Mozart.

Operator: Please note, anyone who wishes to ask a question during the conference may press star and 1 on the touch-tone telephone. You will hear a tone to confirm that you've entered the queue.

Rodolfo Savitzky: We expect to see these benefits come through already in H2, with local sales and marketing costs approaching 21% by 2021, on a 12-month basis to eliminate seasonality.

Brian Duffy: We have been very clear that we aim to be partner number one for Microsoft.

Dina Ibardi: Morning, gents.

Speaker Change: You May press Star two participants are requested choose only handsets when asking a question. Please hold the line the conference will begin shortly thank you.

Unknown Executive: The participants are requested to use on the hands as well as the question.

Unknown Executive: Please hold the line; the conference will begin shortly. Thank you.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Yes.

Speaker Change: [music].

Operator: If you wish to remove yourself from the question queue, you may press star and 2.

Unknown Executive: Ladies and gentlemen, welcome to the SoftwareONE H1 2024 results conference call and live webcast.

Speaker Change: Ladies and gentlemen, welcome to the software one H 1024 results conference call and webcast I am Sandra the chorus call operator.

Operator: You wish to remove yourself from the question.

Rodolfo Savitzky: Our cash conversion to the capex was 169 million or 66% of adjusted, The CapEx Investment into our Marketplace portfolio.

Brian Duffy: We are the only partner that I'm aware of that discloses our Copilot numbers, and I will say that we are well on track to being partner number one for Copilot.

Dina Ibardi: Just one question on your go to market restructuring expenses for the full year.

Sandra: I am Sandra, the course collaborator. I would like to remind you that all participants have been listen-only and the conference has been recorded.

Speaker Change: I would like to remind you that all participants had been listen only mode and the conference is being recorded.

Unknown Executive: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast.

Speaker Change: The presentation will be followed by a Q&A session.

Speaker Change: You can register for questions at any time by pressing star one on your telephone for operator assistance, Please press star and zero debt.

Speaker Change: The conference must not be recorded for publication or broadcast.

Operator: Participants are requested to use only hands while asking a question.

Unknown Executive: At this time, it's not leisure to hand over to Anna Engwell's head of investor relations of Softwareone. Please go ahead, madam.

Unknown Speaker: Diolch yn fawr iawn am wylio'r fideo.

Rodolfo Savitzky: In terms of our net cash development, we had further outflows, including M&A and earn out payments, significant return to shareholders in the form of dividends and the share buyback program of combined over 90 million, as well as restructuring. This led to a net debt position of $208.7 million at June 30, 2017.

Dina Ibardi: I think I see 14 million for the half year.

Speaker Change: At this time, it's my pleasure to hand over to Anna <unk> head of Investor relation of software. One. Please go ahead Ben.

Anna Engvall: Good morning and thank you to everyone for joining SoftwareONE's H1 2024 results.

Anna: Good morning, and thank you to everyone for joining soccer ones H, one 2024 results.

Anna Engvall: I'm Anna Engwell's head of Investor Relations at Softwareone. Joining me today are Brian Duffy, our CEO, and Redolkowski, CSO.

Anna <unk>: Anna <unk> head of Investor Relations software one joining me today are Brian Duffy, our CEO and Ludovico to Minsky CFO.

Anna Engvall: In terms of agenda, we will kick off with a summary of our H1 2024 results presented by Brian. Redolkowski will then take us through our financial performance.

Anna <unk>: In terms of agenda, we will kick off with a summary of our 2024 results presented by Brian Rodolfo will then take us through our financial performance, we will finish the session with Q&A as usual before handing over to Brian. Please let me draw your attention to the disclaimer regarding forward looking statements.

Anna Engvall: We will finish the session with Q&A as usual. Before handing over to Brian, please let me draw your attention to the disclaimer regarding forward-looking statements and non-IFRS measures on slide three.

Brett: Hi, Brett measures.

Brett: Great.

Brian Duffy: With that, I will hand over to Brian. Good morning, everyone, and thank you for joining the call. Let me begin with some key highlights for the first half of the year. In H1, we delivered solid results with 7% growth and then improved margin against the backdrop of continued macroeconomic uncertainty. Our performance was supported by the implementation of Vision 2026, which is progressing according to plans. We successfully launched our Transforms Golden Margaret model in key markets with our new sales of sets to capture share in the growing underserved SME segment. We also completed our operational excellence program, exceeding the initial target of the set launch year.

Brett: That I will hand over to Brian.

Operator: Please hold the line, the conference will begin shortly.

Unknown Speaker: Rwy'n gobeithio y byddwch chi'n cymryd pethau ar eich gilydd hefyd yn gofyn cwestiynau.

Rodolfo Savitzky: At the end of the half year, net working capital was at 182.6 million, a level similar to our June position last year. Our day sales outstanding have risen due to current market conditions and the growth of consumption-based offerings, which involved accruing for the fixed commitment and invoicing later compared to enterprise agreements where the invoice is issued upon delivery of the license. To better match the extended customer payment cycle, we have managed to optimize our ISV payment.

Brian Duffy: We are very happy here, and they are very happy in Seattle with us.

Rodolfo Savitzky: Can you give some guidance for the remainder of the year?

Brian Rodolfo: Good morning, everyone and thank you for joining the call. Let me begin with some key highlights for the first half of the year.

Operator: Thank you.

Operator: Ladies and gentlemen, welcome to the SoftwareOne H1-2024 results conference call and live webcast.

Martin Jungfleisch: Cool, so that's 300,000 users per quarter, would you say that's a decent run rate that you could expect also in the Q3 or Q4?

Rodolfo Savitzky: Yeah, we expect a similar level.

Brian Rodolfo: And each one as we delivered solid results with 7% growth and improved margin against the backdrop of continued macroeconomic uncertainty.

Operator: I am Sandra, the call operator.

Brian Rodolfo: Our performance was supported by the implementation of that vision 2026, which is.

Brian Rodolfo: According to plan.

Brian Rodolfo: Successfully launch our transform go to market model in key market with our new sales of SaaS to capture share in the growing underserved.

Brian Rodolfo: SME segment.

Rodolfo Savitzky: Working capital management remains a top priority. Some of the operational excellence measures we're putting in place will allow us to expedite collection by increasing the percentage of accurate invoices, as well as providing greater transparency on overdue invoices to our collectors.

Brian Rodolfo: We also completed our operational excellence program exceeding the initial targets that we set.

Brian Rodolfo: Last year.

Rodolfo Savitzky: As Brian already mentioned, as a result of continued macroeconomic uncertainty impacting clients' purchasing behavior, and development in our application services business in Colombia.

Brian Duffy: While we still improve momentum in many of our growth markets in H1, and most remain fully on track, the macroeconomic environment continues to affect client purchasing behavior. Specifically in DOC. Secondly, our public sector application services business in Colombia has been impacted by the changing government. Consequently, we have provided our revenue guidance to 7 to 9% growth, then from 8 to 10%. We have maintained our adjusted vision margin of 24.5% to 25.5%.

Speaker Change: While we saw improved momentum in many of our growth Mark with an H, one and most remain fully on track the macroeconomic environment continues to affect clients purchasing behavior specifically in seconds.

Speaker Change: Secondly, our public sector application services business in Colombia has been impacted by the change in government.

Speaker Change: Consequently, we have revised our revenue guidance to seven to nine but think growth Dan from 8% to 10%. We have maintained our adjusted EBITDA margin of 21.

Rodolfo Savitzky: We now expect revenue growth for the full year of 7 to 9% in constant currency. And we confirm our adjusted EBITDA margin target of 24.5 to 25.5%. We anticipate a positive impact on growth in the second half of the year as the new sales organization becomes fully operational.

Speaker Change: To 25, 5%.

Operator: I would like to remind you that all participants are in listen-only mode and the conference is being recorded.

Brian Duffy: Now, before moving on, I would like to briefly comment on the update on the Board of Directors. The Board has received indications of interest of a potential going-privileged transaction. Discussions, although challenging, giving the business environment, are progressing, and the Board will provide further updates if and when required. Now, looking at our financial results in more detail, we delivered solid growth of 7% in age 1, with a similar level in Q2, benefiting from our global preference, the breadth of our portfolio, and improved executions across the business. Adjusted even a group by over 11% with a margin of 23% of 1 percentage points reflecting our focus on profitable growth.

Unknown Speaker: Os gwelwch yn dda, bydd y cyfarfod yn dechrau'n gyflym.

Rodolfo Savitzky: Also, as mentioned, we expect to maintain our productivity improvement in delivery and support functions, which in addition to operating leverage, will lead to continued EBITDA margin improvement compared to prior year in line with that.

Rodolfo Savitzky: The mix will change.

Speaker Change: Now before moving on I would like to briefly comment on the update on the board of directors.

Operator: Ladies and gentlemen, welcome to the SoftwareOne H1-2024 results conference call and live webcast.

Rodolfo Savitzky: You of course cannot see inside the components of the mix.

Operator: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone.

Speaker Change: The board has received indications of interest how about potential going private transaction.

Operator: For operator assistance, please press star and 0.

Operator: The conference must not be recorded for publication or broadcast.

Operator: At this time, it's my pleasure to hand over to Anna Engvall, Head of Investor Relations of SoftwareOne.

Operator: I am Sandra, the call operator.

Speaker Change: Discussion, although challenging given the business environment are progressing and the board will provide further updates on <unk>.

Operator: I would like to remind you that all participants have been listened only and the conference is being recorded.

Operator: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone.

Speaker Change: When required.

Speaker Change: Now looking at our financial results in more detail, we delivered solid growth of 7% and each one with a similar level in Q2 benefiting from our global footprint, the breadth of our portfolio and improved execution across the business.

Rodolfo Savitzky: Our mid-term guidance remains unchanged.

Rodolfo Savitzky: Of course, part of the $14 million you see in H1 is expenses associated with the advisors supporting us on the program that will save, down during the second half.

Anna Engvall: Please go ahead, madam.

Anna Engvall: Good morning and thank you to everyone for joining SoftwareOne's H1-2024 results.

Anna Engvall: I'm Anna Engvall, Head of Investor Relations at SoftwareOne.

Speaker Change: Adjusted EBITDA grew by over 11% with a margin of 23% up one percentage point, reflecting our focus on profitable growth.

Anna Engvall: Joining me today are Brian Duffy, our CEO, and Rodolfo Ceveschi, CFO.

Anna Engvall: In terms of agenda, we will kick off with a summary of our H1-2024 results presented by Brian.

Unknown Executive: Please note, anyone who wishes to ask a question during the conference may press star in one on the touch tone telephone.

Unknown Executive: Please note, anyone who wishes to ask a question during the conference may press star in one on the touch tone telephone. You will hear it on to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star in two. The participants are requested to use on the hands as well as the question.

Brian Duffy: Moving on to regional performance, that grew over 3% primarily driven by lower results in the Microsoft business. Momentum improving Q2 up 6% driven by other IFB and a few excellent customer wins in IT portfolio management and SAP services. With new leadership in place in January, we have very good visibility on pipeline progression in Q3. Although, as mentioned, we do see the uncertain macroeconomic environment having a slightly larger impact than anticipated. The rest of the meal with a over 4% driven by strong momentum in southern Europe, particularly within services and central and eastern Europe. France and Italy both grew double digits, with fame surpassing 20%.

Speaker Change: Moving on to our regional performance.

Speaker Change: <unk> grew over 3%, primarily driven by lower results in the Microsoft business momentum improved in Q2 up 6% driven by other ISP and a few excellent customer wins in ICU portfolio management.

Unknown Executive: You will hear it on to confirm that you have entered the queue.

Unknown Executive: If you wish to remove yourself from the question queue, you may press star in two.

Unknown Executive: Please hold the line, the conference will begin shortly. Thank you.

Speaker Change: SAP services.

Speaker Change: With new leadership in place since January we have very good visibility on pipeline progression in Q3, although as mentioned, we do see the uncertain macroeconomic environment, having a slightly larger impact than anticipated.

The rest of EMEA with them.

Speaker Change: <unk>, 4% driven by strong momentum in southern Europe, particularly within the service Center.

Speaker Change: And eastern Europe.

Unknown Executive: The participants are requested to use on the hands as well as the question.

Sandra: Ladies and gentlemen, welcome to the Softwareone H1 2024 Results Conference call and live webcast. I am Sandra the course collaborator. I would like to remind you that all participants have been listen only and the conference has been recorded.

Speaker Change: France, and Italy, both grew double digits with Spain, surpassing the 20 percents.

Brian Duffy: A back delivered a strong H1 of over 10% growth from slightly in Q2, driven by China, which is currently a challenging market. Nevertheless, we have a broad presence in the region and remain confident in delivering a strong performance for the year. Meanwhile, Nauron, with up by 15%, supported by several large customer wins in both orders. And as we emphasize in February, North America is a priority market for us, and we intend to continue strengthening our organization in the region to ensure we have the right capabilities to succeed there. Lata grew by 10%, with an outstanding 15% in Q2, and improved results across the majority of markets in the region.

Speaker Change: APAC delivered a strong eight one up over 10% growth from slightly in Q2, driven by China, which is currently a challenging markets. Nevertheless, we have a broad presence in the region and remain confident in delivering a strong performance for the year.

Unknown Executive: Please hold the line, the conference will begin shortly.

Unknown Executive: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast.

Speaker Change: Meanwhile, Nomura with up by 15% supported by several large customer wins in both quarters.

Unknown Executive: At this time, it's not leisure to hand over to Anna Engwell's Head of Investor Relations of Softwareone.

Speaker Change: We emphasized in February North America is a priority market for us.

Anna Engvall: Please go ahead, Madam. Good morning and thank you to everyone for joining Softwareone's H1 2024 Results. I'm Anna Engwell's Head of Investor Relations at Softwareone. Joining me today are Brian Duffy, our CEO and Redolkowski CSO. In terms of agenda, we will kick off with a summary of our H1 2024 Results presents by Brian. Redolkowski will then take us through our financial performance. We will finish the session with Q&A as usual.

Speaker Change: <unk> intends to continue strengthening our organization and the region to ensure we have the right capabilities to succeed there.

Unknown Executive: Thank you.

Unknown Executive: Ladies and gentlemen, welcome to the Softwareone H1 2024 Results Conference call and live webcast.

Speaker Change: Latam grew by 10% with an outstanding 15% in Q2 and improved results across the majority of markets in the region.

Sandra: I am Sandra the course collaborator.

Brian Duffy: Clearly, the turnaround measures that have been implemented by our new leadership team are working, and we see further upside that the ongoing launch of our new go-to-market model. Turning to our business line, sovereign cloud marketplace was up over 6% in H1. Microsoft Billings reached $11.9 billion US dollars, up 8% year and year, which translated into a revenue growth at a slightly lower level. In other ISBs, we delivered double digits growth in Q2, supported by successful renewals and pricing initiatives launched earlier this year, and an increased focus on our prioritized partners. Double-in-tribe services delivered over 8% revenue growth in H1.

Speaker Change: Clearly the turnaround measures, which have been implemented by our new leadership team are working and we see further upside and that the ongoing launch of our new go to market model.

Speaker Change: Turning to our business, Brian Dow Corning by marketplace was up over 6% to eight one Microsoft billing reached 11 $9 billion up 8% year on year, which translated into a revenue growth at a slightly lower level.

Rodolfo Savitzky: And of course, you will see the full reorganization impacting in the second half, but we expect a similar impact and that should be for tomorrow.

Anna Engvall: Before handing over to Brian, please let me dry your attention to the disclaimer regarding forward-to-view statements and non-IFRS measures on slide three.

Brian Duffy: With that, I will hand over to Brian. Good morning, everyone and thank you for joining the call. Let me begin with some key highlights for the first half of the year. In H1, we delivered solid results with 7% growth and then improved margin against the backed-up of continued macroeconomic uncertainty. Our performance was supported by the implementation of Vision 2026, which is progressing according to plans. We successfully launched our Transforms Golden Margaret model in key markets with our new sales of sets to capture share in the growing underserved SME segment.

Unknown Executive: I would like to remind you that all participants have been listen only and the conference has been recorded.

Unknown Executive: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone.

Speaker Change: And other ISP, we delivered double digit growth in Q2.

Unknown Executive: For operator assistance, please press star and zero.

Speaker Change: Warranted by successful renewal.

Speaker Change: Pricing initiatives launched earlier this year and an increased focus on a prioritized partners.

Unknown Executive: The conference must not be recorded for publication or broadcast.

Speaker Change: Software and services delivered over 8% revenue growth and <unk>.

Brian Duffy: Growth was driven by strong momentum in triad services across all three hyperscalers, IT portfolio management, as well as FAP service. Professor, meanwhile, application services was impacted by weak public sector results in Colombia following the change of government. Transforming our voter market model and driving sales productivity are key to building a world-class organization which leverages our existing scale and reach. And H1, we made significant progress completing the implementation of our new voter market model in key markets, including DAW, North America, the UK and Ireland, Mexico, Brazil, and India. These markets account for around 60% of our revenue, and the remaining 40% will transition during H2.

Growth was driven by strong momentum in client services across all three hyperscale.

Anna Engvall: At this time, it's not leisure to hand over to Anna Engwell's Head of Investor Relations of Softwareone.

Speaker Change: Portfolio management, as well as F&B services, meaning.

Speaker Change: Meanwhile, application services was impacted by weak public sector results in Colombia, following the change of government.

Unknown Executive: Please go ahead, Madam.

Brian Duffy: We also completed our operational excellence program, exceeding the initial target of the set launch year. While we still improve momentum in many of our growth markets in H1 and most remain fully on track, the macroeconomic environment continues to affect client purchasing behavior. Specifically in DOC. Secondly, our public sector application services business in Colombia has been impacted by the changing government. Consequently, we have provided our revenue guidance to 7 to 9% growth, then from 8 to 10%. We have maintained our adjusted vision margin of 24.5 to 25.5%.

Anna Engvall: Good morning and thank you to everyone for joining Softwareone's H1 2024 Results.

Transforming our go to market model and driving sales productivity are key to building a world class organization, which leverages, our existing scale and reach in each one we made significant progress completing the implementation of our new go to market model in key markets.

Anna Engvall: I'm Anna Engwell's Head of Investor Relations at Softwareone.

Anna Engvall: Joining me today are Brian Duffy, our CEO and Redolkowski CSO.

Speaker Change: <unk>, North America, U K, and Ireland, Mexico, Brazil, and India.

These markets accounted for around 60% of our revenue and the remaining 40% will transition during H two.

Brian Duffy: Now, before moving on, I would like to briefly comment on the update on the Board of Directors. The Board has received indications of interest of a potential going-privileged transaction. Discussions, although challenging, giving the business environment, are progressing, and the Board will provide further updates if and when required. Now, looking at our financial results in more detail, we delivered solid growth of 7% in age 1, with a similar level in Q2, benefiting from our global preference, the breadth of our portfolio, and improved executions across the business.

Brian Duffy: A part of the new model, Elon's hope and Nashville and Barcelona to effectively target the growing and underserved SME segments with a digital-led sales motion. We are also opening Hope in Bogota and South Palo to serve the Latin American market. These hope will initially focus on the Microsoft tech stack, including co-pigas and security solutions, before offering a broader portfolio. Meanwhile, we reorganize our client coverage for the enterprise and corporate segments to enable our Kent managers to go deeper with our larger customers to gain wallet share as well as funds for new logos. Additionally, we strengthen our globally aligned team with a strategic hire.

Speaker Change: As part of the new model launch in Nashville, and Barcelona to effectively target the growing and underserved SME segment with a digital AD sales motion. We are also opening hubs involved with that.

Speaker Change: Hello.

Speaker Change: The Latin American markets. These hubs will initially focus on the Microsoft Tech stack, including co pilot on security solutions before offering a broader portfolio.

Brian Duffy: In terms of agenda, we will kick off with a summary of our H1 2024 Results presents by Brian.

Speaker Change: Meanwhile, we reorganized our client coverage for the antibody and corporate segment to enable our tank monitoring to go deeper with our larger customers to gain wallet share as well as funds for new logos.

Rodolfo Savitzky: Redolkowski will then take us through our financial performance.

Brian Duffy: Adjusted even a group by over 11% with a margin of 23% of 1 percentage points reflecting our focus on profitable growth. Moving on to regional performance, that grew over 3% primarily driven by lower results in the Microsoft business. Momentum improving Q2 up 6% driven by other IFB and a few excellent customer wins in IT portfolio management and SAP services. With new leadership in place in January, we have very good visibility on pipeline progression in Q3, although as mentioned, we do see the uncertain macroeconomic environment having a slightly larger impact than anticipated.

Speaker Change: Additionally, we strengthened our global online team with strategic hires.

Unknown Executive: We will finish the session with Q&A as usual.

Brian Duffy: The team is working with our prioritized partners to build joint global market programs and share targets to cross and upsell our broader portfolio. And, as we mentioned, we've seen early results on this with our other ISBs accelerating to double-digit growth in Q2. Finally, we implemented an AI-based renewal model for the marketplace business line and will roll it out across managed services in H2. We are also driving pricing excellence with successful pilots in DOC, the UK, Nordics, and Benelops. Supporting our digital first, Bogota market approach, our marketplace platform facilitates bringing customers and vendors together to disrupt our industry.

Speaker Change: The team is working with our prioritize partners to build joint go to market program and share targets to cross and upsell our broader portfolio.

Unknown Executive: Before handing over to Brian, please let me dry your attention to the disclaimer regarding forward-to-view statements and non-IFRS measures on slide three.

Speaker Change: We mentioned we have seen early results on this with our other Isps accelerating to double digit growth in Q2.

Brian Duffy: With that, I will hand over to Brian.

Speaker Change: Finally, we implemented an AI based renewal model for the marketplace business line umbrella.

Rollout across managed services and a suite.

Speaker Change: We are also driving pricing excellence with successful pilots in the U K Nordics and Benelux.

Brian Duffy: The rest of the meal with a over 4% driven by strong momentum in southern Europe, particularly within services and central and eastern Europe. France and Italy both grew double digits with fame surpassing 20%. A back delivered a strong H1 of over 10%, growth from slightly in Q2 driven by China, which is currently a challenging market. Nevertheless, we have a broad presence in the region and remain confident in delivering a strong performance for the year.

Speaker Change: Supporting our digital first go to market approach on marketplace platform facilitates bringing customers and vendors together to disrupt our industry are existing relationships and decades of tribal knowledge are significant those bonds.

Brian Duffy: Our existing relationships and decades of tribal knowledge are significant advantages versus the many generic marketplaces that are right there today. The platform continues to gain traction in Q2 with a number of private subscriptions growing to over 35,000 and LTM growth sales increasing to 825 million Swiss francs. This translates to around 100 million of revenue, or 10% of group revenue. First of all, one. We continue to add new features to enhance the customer experience. For example, split billing for multiple customer entities and scale at the platform by adding new vendors. We are also focusing on automation of all backend processes and aim to reach an end-to-end automated chain by the end of 2025.

Speaker Change: Versus the many generic marketplaces that are out there today.

<unk> continued to gain traction in Q2 with a number of trials subscriptions growing to over 35000, and LTM gross sales increasing to 825 million Swiss francs. This translates to around $100 million of revenue or 10% of group revenue for software.

Brian Duffy: Meanwhile, Nauron with up by 15% supported by several large customer wins in both orders. And as we emphasize in February, North America is a priority market for us, and we intend to continue strengthening our organization in the region to ensure we have the right capabilities to succeed there. Lata grew by 10%, with an outstanding 15% in Q2, and improved results across the majority of markets in the region. Clearly, the turnaround measures that have been implemented by our new leadership team are working and we see further upside that the ongoing launch of our new go-to-market model.

Speaker Change: One.

Speaker Change: We continue to add new features to enhance the customer experience for example split billing for multiple customer entities and scaling the platform by adding new vendors. We are also focusing on automation all backend processes and aim to reach an end to end automated <unk>.

Speaker Change: <unk> by the end of 2025.

Brian Duffy: Over the medium term, we expect this platform to become a key driver of both top-line growth and margin for Software One. Co-pilot 365 had now been generally available for around two quarters. Our focus remains on being the number one partner for Microsoft while supporting clients with exploring use cases, addressing data security and compliance concerns, and creating effective adoption programs. By June 2024, we have reached around 600,000 co-pilot abusers, nearly double the number of users by the end of Q1. We have also delivered an additional 240 services engagement in Q2.

Speaker Change: Over the medium term, we expect this platform to become a key driver of both top line growth and margin for software one.

Brian Duffy: Turning to our business line, sovereign cloud marketplace was up over 6% in H1. Microsoft Billings reached $11.9 billion US dollars up 8% year and year, which translated into a revenue growth at a slightly lower level. In other ISBs, we delivered double digits growth in Q2, supported by successful renewals and pricing initiatives launched earlier this year, and an increased focus on our prioritized partners. Double-in-tribe services delivered over 8% revenue growth in H1.

Speaker Change: Co pilot 365 have now being generally available for around two quarters, our focus remains on being the number one partner from Microsoft while supporting flying with exploring use cases, addressing data security and compliance concerns and creating effective adoption programs.

Speaker Change: By June 2024, we hadn't reached around 600000 co pilot abuser.

Speaker Change: Double the number of users by the end of Q1, we had also delivered an additional 240 services engagement in Q2.

Brian Duffy: Growth was driven by strong momentum in triad services across all three hyperscalers, IT portfolio management, as well as FAP service. Professor, meanwhile, application services was impacted by weak public sector results in Colombia following the change of government. Transforming our voter market model and driving sales productivity are key to building a world-class organization which leverages our existing scale and reach. And H1, we made significant progress completing the implementation of our new voter market model in key markets, including DAW, North America, UK and Ireland, Mexico, Brazil, and India.

Brian Duffy: Now let's turn to some examples. Aaron, a Luxembourg law, tax, and business services firm, is a great example of how we've been partnering with clients to explore use cases for Co-Pilot 365 to transform their way to working. As part of our holistic co-pilot advisory service, SoftwareOne together brought together the firm's most relevant stakeholders to showcase co-pilot's capabilities. We demonstrated its integration with a 365 suite, highlighting its potential to streamline content creation, data analysis, legal research, and translation. The Softwareone team also proposed new innovative uses, such as a chat box to support the legal teams, and that based on these results, Aaron's intent to expand the use of co-pilot throughout its entire organization.

Speaker Change: Now, let's turn to some examples and I look at them Berg law tax and business services firm is a great example of how we've been partnering with clients to exploring use cases for co pilot $3 65 to transform their ways of working at.

Brian Duffy: I'll now hand back to Brian for his closing.

Brian Duffy: I think what we've seen is customers have started, some have started small, and now in terms of the example that we gave you, we're now seeing the customers deciding to do a mass rollout across the entire organization for CoPilot, and we expect to see the momentum with CoPilot continuing and accelerating into the second half of the year.

Brian Duffy: Maybe you've been there, yeah.

Brian Duffy: Cool, that's helpful, thank you very much.

Speaker Change: As part of our holistic copilot advisory focused software one together.

Operator: For any further questions please press star followed by one.

Speaker Change: Altogether, the firm's most relevant stakeholders to showcase copilots capability, we demonstrated integration with a 365 suite highlighting its potential to streamline content creators and data analysis legal research and translation.

Operator: We have a follow-up question from Florian Treisch from Kepler, please go ahead.

Florian Treisch: Great, thank you.

Florian Treisch: Then some follow-up or two follow-ups on my end.

Florian Treisch: So the one on Copilot as well.

Speaker Change: The software one team all of the proposed new innovative uses such as the chatbot to support the legal teams and that based on these results aren't intends to expand the use of co pilot throughout the entire organization.

Brian Duffy: These markets account for around 60% of our revenue and the remaining 40% will transition during H2. A part of the new model, Elon's hope and Nashville and Barcelona to effectively target the growing and underserved SME segments with a digital-led sales motion. We are also opening hope in Bogota and South Palo to serve the Latin American market. These hope will initially focus on the Microsoft tech stack, including co-pigas and security solutions, before offering a broader portfolio.

Brian Duffy: In addition to co-pilot, we continue to focus on our expand services in high growth segments such as data and AI, supporting mid-marker clients with getting their data in order. An example of this is Amrits, a restaurant operator in Europe managing the diverse portfolio of well-known franchises such as KFC, Pizza Hut, and Starbucks. They were looking to enhance their data infrastructure to better analyze and utilize data for improving sales and marketing operations. As a solution, we helped them build an enterprise data warehouse on Microsoft Azure. Today, Amrits has a scalable solution which accommodates the growing data needs and provides them with deeper insights into customer preferences and behaviors, and enabling them to deliver a more personalized and effective marketing strategy.

Speaker Change: In addition to co pilot, we continue to focus on our expand services in high growth segments, such as data and AI supporting mid market clients.

Speaker Change: Clients.

Speaker Change: Getting their data in order and.

Speaker Change: An example of this is <unk> a restaurant operator in Europe, managing a diverse portfolio of well known franchises such as KFC Pizza hut and Starbucks.

Brian Duffy: Meanwhile, we reorganize our client coverage for the enterprise and corporate segments to enable our Kent managers to go deeper with our larger customers to gain wallet share as well as funds for new logos. Additionally, we strengthen our global aligned team with strategic hire. The team is working with our prioritized partners to build joint global market programs and share targets to cross and upsell our broader portfolio. And as we mentioned, we've seen early results on this with our other ISBs accelerating to double digit growth in Q2.

Speaker Change: They were looking to enhance their data infrastructure to better analyze and utilize data for improving sales and marketing operations.

Speaker Change: The solution, we help them build an enterprise data warehouse on Microsoft Azure.

Anna Engvall: Rodolfo will then take us through our financial performance.

Speaker Change: Today, <unk> has a scalable solution, which accommodates the growing data needs and provides them with deeper insights into customer preferences, and behaviors and enabling them to deliver a more personalized and effective marketing strategy now.

Rodolfo Savitzky: Now, with that, I will hand over to Rudolfo, who will take us through our financial performance in H1.

Operator: Operator Assistance, please press star and zero.

Brian Duffy: Thanks, Rodolfo.

Florian Treisch: So you're obviously happy with the adoption rate now, clearly going up towards a decent level, I would say, for the, as you said, only six months on the market.

Brian Duffy: I would just also add that our focus as an organization when it comes to the go-to-market transformation is growing our market share and growing our wallet share.

Speaker Change: Now with that I will hand over to <unk>, who will take us through our financial performance in Haynesville.

Anna Engvall: We will finish the session with Q&A as usual.

Rodolfo Savitzky: Thank you, Brian. I'd like to extend a warm welcome from my side as well. Let me begin by discussing our financial performance at the group level. Revenue growth in H1 was solely that 7% in line with our expectations, with broad-based growth across the regions and business life. Our focus on operational excellence continued to give positive results. We reduced the delivery costs of setting the effect of portfolio mix changes. These resulted in a three percentage points increase in contribution margin, both in H1 and in Q2. H&A expenses increased by 13% in H1, with a productivity improvement largely offset by growth in H1.

Operator: The conference must not be recorded for publication or broadcast.

Brian Duffy: That means having the right coverage model both in the sales and pre-sales perspective.

Brian Duffy: Finally, we implemented an AI-based renewal model for the marketplace business line and will roll it out across managed services in H2. We are also driving pricing excellence with successful pilots in DOC, the UK, Nordics and Benelops. Supporting our digital first, Bogota market approach, our marketplace platform facilitates bringing customers and vendors together to disrupt our industry. Our existing relationships and decades of tribal knowledge are significant advantages versus the many generic marketplaces that are right there today.

Speaker Change: Thank you Bryan I'd like to extend a warm welcome from my side as well.

Operator: At this time, it's my pleasure to hand over to Anna Engvall, Head of Investor Relations of SoftwareOne.

Brian Duffy: To conclude, we have delivered a solid set of results in the current environment, and the implementation of Vision 2026 is well on track. We are not yet finished, but our progress in HBM adds to our confidence in delivering on our 2026 targets, which is mid-teens revenue growth and a margin approaching 28%.

Florian Treisch: Can you give us also, let's call it first indication on RE, indications or kind of performance to really get an impression that, or to get a feeling if your 15 percent adoption rate you assume and you branded as conservative in the past.

Brian Duffy: We talk a lot about the digital sales and the SME segment, and that is an investment that we're making where we certainly expect to see a payoff, but already we are seeing a payoff in terms of the investments that we're making at the top of the pyramid in terms of our NFIs and our corporate customers, and this is the second quarter in a row where we have called out the large wins that we have had in North America, and I expect based on the progression of our pipeline in Q3 that we will be seeing a similar result in Europe.

<unk>: Let me begin by discussing our financial performance at the group level.

Operator: Please go ahead, madam.

Brian Duffy: Thank you and now let's move on to the Q&A.

Florian Treisch: Is it really still a very conservative number from you and, i.e., is it really a game-changing solution for the client for a respective price?

Rodolfo Savitzky: And maybe just to final comment on that topic, because I think it's an important one going to look, at the evolution of our sales expenses as such, we expect them to be either in line or slightly below the current level.

Speaker Change: Revenue growth in each one was solid at 7% in line with our expectations with broad based growth that caused some regions and business lines.

Anna Engvall: In terms of agenda, we will kick off with a summary of our H1 2024 results presented by Brian.

Operator: We will now begin the question and answer session.

Florian Treisch: The second one would be in general around Microsoft.

Rodolfo Savitzky: This is a, this program as such does not translate into higher cost, but rather in net product.

Operator: Anyone who wishes to ask a question may press star and 1 on the touchtone telephone.

Rodolfo Savitzky: But even more importantly, as Brian also mentioned, The biggest value is in the growth acceleration and improvement in productivity as measured by sales per FT. And here also, as indicated in one of the graphs, we expect already in H2 a significant acceleration of productivity as measured by sales per FT.

Anna Engvall: Before handing over to Brian, please let me draw your attention to the disclaimer regarding forward review statements and non-IFRS measures on slide 3.

Florian Treisch: You mentioned around 5% growth dynamic.

Speaker Change: Our focus on operational excellence continued to yield positive results.

Florian Treisch: Can you provide some feedback?

Speaker Change: We reduced delivery costs offsetting the effect of portfolio mix changes. These resulted in a three percentage points increase in contribution margin.

Speaker Change: In each one and in Q2.

Brian Duffy: The platform continues to gain traction in Q2 with a number of private subscription growing to over 35,000 and LTM growth sales increasing to 825 million Swiss francs. This translates to around 100 million of revenue, or 10% of group revenue, first of all one. We continue to add new features to enhance the customer experience. For example, split billing for multiple customer entities and scale at the platform by adding new vendors. We are also focusing on automation of all backend processes and aim to reach an end-to-end automated chain by the end of 2025.

Anna Engvall: With that, I will hand over to Brian.

Speaker Change: SG&A expenses increased by 13% in each one we said productivity improvements largely offset by growth investments.

Brian Duffy: Good morning, everyone, and thank you for joining the call.

Rodolfo Savitzky: Reinvestment. Our adjusted EBITDA margins to that 23% for the first half, reflecting a 1% point increase versus last year. In terms of foreign exchange, the sweet front continued to strengthen Q1, but remained relatively stable compared to key currencies in Q2. Overall, these resulted in a negative impact on revenue of 2.4% in H1. However, thanks to our natural hedge with similar foreign exposures in expenses, the impact on the adjusted EBITDA margin was once again minute. This bridge illustrates the year-on-year changes in adjusted EBITDA, highlighting how we achieved margin expansion through revenue growth and enhanced productivity while investing in the business.

Speaker Change: Our adjusted EBITDA margins stood at 23% for the first half, reflecting a one percentage point increase versus last year.

Brian Duffy: Let me begin with some key highlights for the first half of the year. In H1, we delivered solid results with 7% growth and an improved margin against a backdrop of continued macroeconomic uncertainty. Our performance was supported by the implementation of Vision 2026, which is progressing according to plan. We successfully launched our transformed go-to-market model in key markets with our new sales hub set to capture share in the growing underserved SME segment.

Speaker Change: In terms of foreign exchange the Swiss franc continued to strengthen in Q1, but remained relatively stable compared to keep currency.

Speaker Change: Okay.

Speaker Change: Overall this resulted in a negative impact on revenue of two four percentage points in each one.

Speaker Change: However.

Speaker Change: Store natural hedge with TBA on Forex exposures in expenses the impact on the adjusted EBITDA margin was once again.

Brian Duffy: Over the medium term, we expect this platform to become a key driver of both top line growth and margin for software one, co-pilot 365 had now been generally available for around two quarters. Our focus remains on being the number one partner for Microsoft while supporting clients with exploring use cases, addressing data security and compliance concerns and creating effective adoption programs. By June 2024, we have reached around 600,000 co-pilot abusers, nearly double the number of users by the end of Q1. We have also delivered an additional 240 services engagement in Q2.

Speaker Change: This bridge illustrates the year on year changes in adjusted EBITDA, highlighting how we achieved margin expansion through revenue growth.

Speaker Change: Enhanced productivity, while investing in the business beginning with delivery cost, we continue to improve productivity by cutting down on higher cost external resources and shifting more internal resources from local remote daily routines.

Rodolfo Savitzky: Beginning with delivery costs, we continue to improve productivity by cutting down on higher cost external resources and shifting more internal resources from local to remote delivery teams. The increase in sales and marketing was due to ramp-up investments across key countries as part of our revised go-to-market model. As been expenses grew, due to investments behind Vision 2026, organic personal cost increases, and certain one-offs. These were partially offset by productivity gains as a result of operational takes on.

Florian Treisch: Where is this coming from?

Rodolfo Savitzky: So it's a program with a very high...

Florian Treisch: Is this driven by lower underlying demand, by lowered commission levels for key products, or really to understand if that is a headwind for the coming quarters as well?

Florian Treisch: Thank you.

Speaker Change: The increase in sales and marketing was due to ramp up investments across key countries as part of our revised go to market model.

Brian Duffy: Thanks, Florian.

Speaker Change: Admin expenses grew due to investments behind vision 2026, organic personnel cost increases and certain one off.

Brian Duffy: So, as you know, and as I said, we're very happy with the progress that we're making. And we do anticipate, as I said to Martin, that we will see a continued acceleration for demand from our customers around copilots.

Brian Duffy: Now let's turn to some examples. Aaron, a Luxembourg law, tax and business services firm is a great example of how we've been partnering with clients to explore use cases for co-pilot 365 to transform their way to working. As part of our holistic co-pilot advisory service, Softwareone together brought together the firm's most relevant stakeholders to showcase co-pilot's capabilities. We demonstrated its integration with a 365 suite, highlighting its potential to streamline content creation, data analysis, legal research and translation.

Speaker Change: These were partially offset by productivity gains as a result of operational excellence.

Rodolfo Savitzky: Moving on to the business life. In marketplace, revenue growth in H1 was 6.1%. As in Q1, the Microsoft business maintained revenue growth in the mid-single digits, while growth in other ISVs accelerated to double digits in Q2, benefiting from an increased focus on prioritized partners. Thanks to a strong decline in delivery costs, contribution margin in marketplace was 88.4%, reflecting an increase of 2 percentage points versus last year. The adjusted imitavages to that 50.2% up 1%age point compared to the prior year. In services, growth was primarily driven by cloud services, IT portfolio management, and SAP services. We achieved a notable increase in contribution margin, reaching 43.7% for H1, which represents a 4.8 percentage point improvement compared to the prior year.

Moving on to the business lines.

Anna Engvall: Rodolfo will then take us through our financial performance.

Unknown Speaker: D'accord, dyna'n glir iawn.

Speaker Change: In marketplace revenue growth in each one was six 1%.

Anna Engvall: We will finish the session with Q&A as usual.

Brian Duffy: What I can say is, given that it's still early days, if we continue to see that acceleration through the second half of the year, it is fair to assume that we will be issuing a new target for ourselves in terms of the conversion of our users.

Speaker Change: As in Q1, the Microsoft businessmen teen revenue growth in the mid single digits, while growth in other Isps accelerated to double digit in Q2.

Speaker Change: Benefiting from an increased focus on privatized partners.

Speaker Change: Thanks to a strong decline in deliberate cost contribution margin in marketplace was 88, 4%, reflecting an increase of two percentage points versus last year.

Brian Duffy: The Softwareone team also proposed new innovative uses such as a chat box to support the legal teams, and that based on these results, Aaron's intent to expand the use of co-pilot throughout its entire organization. In addition to co-pilot, we continue to focus on our expand services in high growth segments such as data and AI, supporting mid-marker clients with getting their data in order.

Speaker Change: The adjusted EBITDA margin stood at 52% up one percentage point compared to the prior year.

Speaker Change: In services growth was primarily driven by cloud services IP portfolio management and S&P.

Speaker Change: We achieved a notable increase in contribution margin, reaching 43, 7% for each one.

Brian Duffy: An example of this is Amrits, a restaurant operator in Europe managing the diverse portfolio of well-known franchises such as KFC, Pizza Hut and Starbucks. They were looking to enhance their data infrastructure to better analyze and utilize data for improving sales and marketing operations. As a solution, we helped them build an enterprise data warehouse on Microsoft Azure. Today, Amrits has a scalable solution which accommodates the growing data needs and provides them with deeper insights into customer preferences and behaviors, and enabling them to deliver a more personalized and effective marketing strategy.

Speaker Change: Four eight percentage point improvement compared to the prior year.

Speaker Change: SG&A increased at a lower rate than contribution margin, resulting in an adjusted EBITDA margin was seven 3% for two percentage points up from last year and it is worthwhile mentioning that services achieved an 11% adjusted EBITDA margin in Q2.

Rodolfo Savitzky: A GNA increased at the lower rate and contribution margin resulting in an adjusted imitavaging of 7.3%, 4.2% age points up from last year, and it is worthwhile mentioning that services achieved an 11% adjusted imitavaging in Q2.

Brian Duffy: We also completed our operational excellence program, exceeding the initial targets that we set last year.

Brian Duffy: While we saw improved momentum in many of our growth markets in H1, and most remained fully on track, the macroeconomic environment continues to affect clients' purchasing behavior, specifically in DOC.

Rodolfo Savitzky: I am pleased to report that we have now completed our operational elections program launched in early 2013. Final annualized cost savings amounted to 76 million compared to the rate 70 million target, of which 7 million have been reinvested in growth illegitimate. This program has laid the foundation for stronger, more resilient organization, and surely will continue to benefit from its impact in the future.

Speaker Change: I am pleased to report that we have now completed our operational excellence program launched in early 'twenty three.

Anna Engvall: Before handing over to Brian, please let me draw your attention to the disclaimer regarding forward review statements and non-IFRS measures on slide 3.

Brian Duffy: As you know, we have 12.5 million users that we're supporting from a Microsoft perspective, and we issued a target to convert 15% of those.

Dina Ibardi: And sorry, I may not have caught the beginning of the Q&A session, but just on.

Brian Duffy: If we continue to operate as we have in the first six months of this year, it's fair to assume that we will see a change in a target that we will issue to our teams internally and then externally as well.

Anna Engvall: With that, I will hand over to Brian.

Brian Duffy: And then I would also comment that, Copilot can be viewed two ways.

Brian Duffy: Good morning, everyone, and thank you for joining the call.

Brian Duffy: Firstly, there's the out-of-the-box Copilot.

Brian Duffy: Then secondly, there is specific use cases that customers can explore around Copilot that are customized for their business.

Brian Duffy: We're very fortunate that one, we have a diversified portfolio.

Speaker Change: Finally, the annualized cost savings amounted to 76 million compared to the rates 70 million target of which 7 million have been reinvested in growth.

Brian Duffy: Secondly, the relationship that we have with customers and our understanding of their business.

Brian Duffy: That's where we now get to hold the hand of a customer and help them explore how they can use CoPilot to truly change their business and receive a return on that investment much quicker than they would have been used to in the past.

Brian Duffy: Good morning, everyone and thank you for joining the call.

Rodolfo Savitzky: Now, with that, I will hand over to Rudolfo who will take us through our financial performance in H1. Thank you, Brian. I'd like to extend a warm welcome from my side as well.

Speaker Change: This program has.

Brian Duffy: And then I'll hand the second part of the question to Rodolfo.

The foundation for a stronger more resilient organization, ensuring we continue to benefit from the impact in the future.

Brian Duffy: Let me begin with some key highlights for the first half of the year. In H1, we delivered solid results with 7% growth and then improved margin against the backed-up of continued macroeconomic uncertainty. Our performance was supported by the implementation of Vision 2026, which is progressing according to plans. We successfully launched our Transforms Golden Margaret model in key markets with our new sales of sets to capture share in the growing underserved SME segment.

Rodolfo Savitzky: Let me begin by discussing our financial performance at the group level. Revenue growth in H1 was solely that 7% in line with our expectations with broad-based growth across the regions and business life. Our focus on operational excellence continued to give positive results. We reduced the delivery costs of setting the effect of portfolio mix changes. These resulted in a three percentage points increase in contribution margin, both in H1 and in Q2. H&A expenses increased by 13% in H1 with a productivity improvement largely offset by growth in H1.

Rodolfo Savitzky: Rit. Well, we will no longer report our savings related to the program. We will of course continue to control costs and drive productivity improvements. Among the initiatives ongoing, we will increasingly utilize AI-driven recommendations to drive sales force effectiveness. We will continue to internalize and write short delivery resources. And lastly, in our finance share service centers, we will further standardize and automate processes. We will increase focus on the order to cash costs.

Speaker Change: Well, we will no longer report our savings related to the program.

Speaker Change: Of course, continuing to control costs and drive productivity improvements.

Speaker Change: Among the initiatives ongoing we will increasingly utilized AI driven recommendations to drive sales force effectiveness.

Speaker Change: We will continue to internalize and right shore delivery resources.

Speaker Change: Lastly, in our finance shared service centers, we would further standardize and automate processes with increased focus on the order to cash flows.

Rodolfo Savitzky: As Brian outlined earlier, we have completed the implementation of the new go-to-market model across our key markets, representing the majority of our web. The remainder will be done in H2. With the new coverage model, we expect productivity to increase across the sales force through optimization of customer-facing and support resources. More effective client coverage improve regeneration and AI driven cross-head. We expect to see these benefits come through of already in H2, with low-consafe and marketing costs approaching 21% by 26. On a 12-month basis to eliminate seasonality, our cash conversion to the capex was 169 million or 66% of adjusted demand.

Speaker Change: As Brian outlined earlier, we have completed the implementation of the new go to market model.

Brian Duffy: Let me begin with some key highlights for the first half of the year. In H1 we delivered solid results with 7% growth and an improved margin against a backdrop of continued macroeconomic uncertainty. Our performance was supported by the implementation of Vision 2026, which is progressing according to plan. We successfully launched our transformed go-to-market model in key markets with our new sales hub set to capture share in the growing underserved SME segment.

Rodolfo Savitzky: Yeah, so Florian, on Microsoft, if we step back and look at the first, we start with the Billings for the half year. Billings grew by 8%, which is a healthy level.

Dina Ibardi: Just on the progression of the go to private transaction.

Brian Duffy: Secondly, our public sector application services business in Colombia has been impacted by the change in government.

Brian Duffy: We also completed our Operational Excellence Program, exceeding the initial targets that we set last year.

Rodolfo Savitzky: And as we have communicated before, our focus is to accelerate what is called the subscription base, the Ex-Impos, the CSP.

Dina Ibardi: So I mean, since the new board has come in, you've had sort of, you know, five, five, four to five months to, to take a look at the sort of advances that you've received.

Rodolfo Savitzky: And here we saw a very healthy growth in Billings, significantly above the average.

Dina Ibardi: I mean, what is it that sort of taking a longer time than than expected in order to sort of reach, reach an agreement?

Rodolfo Savitzky: Not all of that translated into into revenue growth.

Dina Ibardi: I know you sort of referenced the deteriorating environment.

Rodolfo Savitzky: When we look at the examples, it was ahead of billing, part of that was a play to reduce a little bit the front end margin to accelerate the volume growth.

Dina Ibardi: And you know, I think, potentially that reduces the probability of a deal completing, but I just wanted to get your sense on why it's taking longer than expected.

Rodolfo Savitzky: So all in all, we see the development in Microsoft as quite healthy, consistent results, quarter on quarter as we communicate in the in the mid single digit.

Brian Duffy: Well, firstly, I'd say the board joined us in, the new board joined us in April timeframe, the transaction committee was established in May, which we communicated to you with our Q1 results, and the board has then received interest May through the end of June, and now in the summer months, we have, as disclosed, received indicative offers, and the board is in discussion with each of those parties that have submitted offers.

Brian Duffy: So I don't think necessarily that it has taken so long when we really looked at the timeline here.

Brian: Our key markets, representing the majority of our debt.

Rodolfo Savitzky: Reinvestment. Our adjusted EBITDA margins to that 23% for the first half, reflecting a 1% point increase versus last year. In terms of foreign exchange, the sweet front continued to strengthen Q1, but remained relatively stable compared to key currencies in Q2. Overall, these resulted in a negative impact on revenue of 2.4% in H1. However, thanks to our natural hedge with similar foreign exposures in expenses, the impact on the adjusted EBITDA margin was once again minute.

Brian: The remainder will be done image.

Brian Duffy: While we saw improved momentum in many of our growth markets in H1, and most remained fully on track, the macroeconomic environment continues to affect clients' purchasing behavior, specifically in DOC.

Brian: With the new coverage model, we expect productivity to increase across the states force through optimization of customer facing and support resources.

Brian: More effective time coverage improved lead generation and AI Cleveland Cross site.

We expect to see these benefits come through already image with local sales and marketing costs approaching 21% by 'twenty six.

Brian: On a 12 month basis to eliminate seasonality.

Rodolfo Savitzky: This bridge illustrates the year-on-year changes in adjusted EBITDA, highlighting how we achieved margin expansion through revenue growth and enhanced productivity while investing in the business. Beginning with delivery costs, we continue to improve productivity by cutting down on higher cost external resources and shifting more internal resources from local to remote delivery teams. The increase in sales and marketing was due to ramp-up investments across key countries as part of our revised go-to market model. As been expenses grew, due to investments behind vision 2026, organic personal cost increases, and certain one-offs. These were partially offset by productivity gains as a result of operational takes on.

Brian: Our cash conversion into the Capex was 169 million or 66% of adjusted.

Rodolfo Savitzky: The capex investment into our marketplace program, in terms of our net cash development, we had further outflows, including M&A and our now payments, significant return to shareholders in the form of dividends and the share buyback program of combined over 90 million, as well as restructuring expenses. This led to a net debt position of 208.7 million at June 30, T.C. At the end of the half-year, networking capital was at 108.6 million, a level similar to our viewing position last year. Our day sales outstanding have risen due to current market conditions and the growth of consumption-based offerings, which involved accruing for the fixed commitment and invoicing later compared to enterprise agreements, where it involves is issued upon delivery of the license.

Brian: The capex investment into our marketplace.

Brian: In terms of our net cash development, we've had further outflows, including M&A and earn out payments significant return to shareholders in the form of D V. The incentive share buyback program of combined over 90 medium as well as restructuring expenses.

Brian: Led to a net debt position of $208 7 million at June 30 P. C.

At the end of the half year net working capital was $182 6 million a level similar to June position last year.

Speaker Change: Our days sales outstanding had recently due to current market conditions and the growth of consumption based offerings, which involved a crude for the fixed commitment and invoicing later compared to enterprise agreements, where the invoice is issued upon delivery of the license.

Rodolfo Savitzky: Moving on to the business life. In marketplace, revenue growth in H1 was 6.1%. As in Q1, the Microsoft business maintained revenue growth in the mid-single digits, while growth in other ISVs accelerated to double digits in Q2, benefiting from an increased focus on prioritized partners. Thanks to a strong decline in delivery costs, contribution margin in marketplace was 88.4%, reflecting an increase of 2%age points versus last year. The adjusted imitavages to that 50.2% up 1%age point compared to the prior year.

Rodolfo Savitzky: To very much the extent of customer payment cycle, we have managed to optimize our ISV payment terms. Working capital management remains a top priority. Some of the operational excellence measures we're putting in place will allow us to expedite collection by increasing the percentage of accurate invoices, as well as providing greater transparency on overdue invoices for our collectors.

To better match, the extensive customer payment cycle, we have managed to optimize payment terms.

Speaker Change: Working capital management remains a top priority.

Speaker Change: So the operational excellence measures, we're putting in place will allow us to expedite collection by increasing the percentage of accurate invoices as well as providing greater transparency on what we're doing voices toll collect.

Correct.

Speaker Change: As Brian already mentioned as a result of continued macroeconomic uncertainty impacting clients purchasing behavior.

Rodolfo Savitzky: As Ryan already mentioned, as a result of continuous macroeconomic uncertainty impacting clients' purchasing behavior and development in our application services business in Colombia, we now expect revenue growth for the food year of 7 to 9% in constant currency, and we confirm our just a dividend margin target of 24.5 to 25.5%. We anticipate that positive impact on growth in the second half of the year as the new sales organization becomes fully operational. Also, as mentioned, we expect to maintain a productivity improvement in delivering support functions, which in addition to operating leverage will need to continue the EBITA margin improvement compared to prior year in language guidance.

Rodolfo Savitzky: In services, growth was primarily driven by cloud services, IT portfolio management and SAP services. We achieved a notable increase in contribution margin, reaching 43.7% for H1, which represents a 4.8%age point improvement compared to the prior year. A GNA increased at the lower rate and contribution margin resulting in an adjusted imitavaging of 7.3% 4.2%age points up from last year, and it is worthwhile mentioning that services achieved an 11% adjusted imitavaging in Q2.

Speaker Change: Element in our application services business in Colombia, we now expect revenue growth for the full year of 72, 9% in constant currency and we confirm our adjusted EBITDA margin target of $24 $5 to 25, 5%.

Brian Duffy: Consequently, we have revised our revenue guidance to 7% to 9% growth, down from 8% to 10%.

Brian Duffy: We have maintained our adjusted EBITDA margin of 24.5% to 25.5%. Before moving on, I would like to briefly comment on the update from the Board of Directors. The Board has received indications of interest of a potential going private transaction. Discussions, although challenging given the business environment, are progressing and, the Board will provide further updates if and when required.

Speaker Change: We anticipate a positive impact on growth in the second half of the year as the new sales organization becomes fully operational.

Speaker Change: Also as mentioned, we expect to maintain our productivity improvement in delivery and support functions, which in addition to operating leverage will lead to continued EBITDA margin improvement compared to prior giving back we tightened our mid term guidance remains unchanged.

Rodolfo Savitzky: Our midterm guidance remains unchanged.

Brian Duffy: We also completed our operational excellence program, exceeding the initial target of the set launch year.

Rodolfo Savitzky: I am pleased to report that we have now completed our operational elections program launched in early 2013. Final annualized cost savings amounted to 76 million compared to the rate 70 million target of which 7 million have been reinvested in growth illegitimate. This program has laid the foundation for stronger, more resilient, organization, and surely will continue to benefit from its impact in the future. Rit. Well, we will no longer report our savings related to the program.

Brian Duffy: I'll now hand back to Brian for his closing remarks.

Speaker Change: I'll now hand back to Brian for his closing remarks.

Brian Duffy: Thanks, Rodolfo. To conclude, we have delivered a solid set of results in the current environment, and the implementation of vision of 2020-26 is well on track. We are not yet finished, but our progress in age range adds to our confidence in delivering on our 2020-26 targets, which is maintained, revenue growth, and a margin of approaching 28%.

Brian: Thanks, Rodolfo to conclude we have delivered a solid set of results in the current environment and the implementation of vision 2026 is well on track we are not yet finished but our progress in each one adds to our confidence in delivering on our 2026 targets, which is mid teen revenue growth and a margin approaching 28%.

Brian Duffy: Looking at our financial results in more detail, we delivered solid growth of 7% in H1, with, a similar level in Q2, benefiting from our global footprint, the breadth of our portfolio and improved execution across the business. Adjusted EBITDA grew by over 11%, with a margin of 23%, up 1 percentage point, reflecting, our focus on profitable growth.

Brian Duffy: Moving on to regional performance, DAX grew over 3%, primarily driven by lower results, in the Microsoft business.

Brian Duffy: Optimism improved in Q2, up 6%, driven by other ISPs and a few excellent customer wins, in IT portfolio management and SAP services.

Brian Duffy: With new leadership in place since January, we have very good visibility on pipeline progression, in Q3, although as mentioned, we do see the uncertain macroeconomic environment having a slightly larger impact than anticipated.

Brian Duffy: The rest of EMEA was up over 4%, driven by strong momentum in Southern Europe, particularly, within services in Central and Eastern Europe. France and Italy both grew double digits, with Spain surpassing 20%.

Brian Duffy: APAC delivered a strong H1, up over 10%. Growth slowed slightly in Q2, driven by China, which is currently a challenging market.

Unknown Executive: Thank you, and now let's move on to the next Q&A.

Speaker Change: Sure.

Speaker Change: Thank you and now let's move on to the Q&A.

Brian Duffy: Nevertheless, we have a broad presence in the region and remain confident in delivering, a strong performance for the year.

Rodolfo Savitzky: We will of course continue to control costs and drive productivity improvements. Among the initiatives ongoing, we will increasingly utilize AI driven recommendations to drive sales force effectiveness. We will continue to internalize and write short delivery resources. And lastly, in our finance share service centers, we will further standardize and automate processes. We will increase focus on the order to cash costs.

Speaker Change: We will now begin the question and answer session anyone who wishes to ask a question press star and one on the Touchstone telephone.

Brian Duffy: Meanwhile, Noron was up by 15%, supported by several large customer wins in both portals.

Operator: You will hear a tone to confirm that you have entered a game.

Brian Duffy: And as we emphasized in February, North America is a priority market for us, and we intend, to continue strengthening our organization in the region to ensure we have the right capabilities to succeed there.

Speaker Change: You will have its own to confirm that you have entered the queue.

Brian Duffy: ASEAN grew by 10%, with an outstanding 15% in Q2, and improved results across the majority, of markets in the region.

Operator: If you wish to remove yourself from the question queue, you may press star and, Questioners on the phone are requested to use only handsets and eventually turn off the volume of the webcast.

Brian Duffy: Clearly, the turnaround measures which have been implemented by our new leadership team, are working, and we see further upside with the ongoing launch of our new go-to-market model.

Speaker Change: If you wish to remove yourself from the question queue, you May press star two.

Unknown Executive: Questions on the phone are requested using only handsets, and eventually turn off the volume of the webcast. Anyone who has a question may press star and one at this time.

Dave Antolik: Question is on the phone our request that it was only handsets and Dave Antolik turn off the one name off the West coast.

Brian Duffy: Turning to our business lines, software and cloud marketplace was up over 6% in H1. Microsoft Billings reached $11.9 billion US dollars, up 8% year-on-year, which translated, into a revenue growth at a slightly lower level.

Brian Duffy: In other ISBs, we delivered double-digit growth in Q2, supported by successful renewals and, pricing initiatives launched earlier this year, and an increased focus on our prioritized partners.

Operator: Anyone with a question may press star and 1 at this time.

Anyone with a question my Crestar one at this time.

Brian Duffy: Software and cloud services delivered over 8% revenue growth in H1. Growth was driven by strong momentum in cloud services across all three hyperscalers, IT, portfolio management, as well as SAP services.

Speaker Change: The first question comes from Julien.

Florian Treisch: The first question comes from Florian Trash from Kepler. Please go ahead. The second part is around your confirmed EVDA guides. If you look at Q2 margins, the first question would be: can you elaborate a bit on the one-off item in there? The five-something million is that recurring also going into H2 and with that you simply imply a nice margin up to Q2. Can you give us some more details on the bridge from H1 margin to H2 margin?

Operator: The first question comes from Florian Treisch from Kepler, please go ahead.

Brian Duffy: Meanwhile, application services was impacted by weak public sector results in Colombia, following the change of government.

Brian Duffy: Transforming our go-to-market model and driving sales productivity are key to building a world-class, organization which leverages our existing scale and reach. In H1, we made significant progress completing the implementation of our new go-to-market, model in key markets, including Dock, North America, UK and Ireland, Mexico, Brazil, and India. These markets account for around 60% of our revenue, and the remaining 40% will transition during H2.

Julien Kepler: Kepler. Please go ahead.

Rodolfo Savitzky: As Brian outlined earlier, we have completed the implementation of the new go-to-market model across our key markets representing the majority of our web. The remainder will be done in H2. With the new coverage model, we expect productivity to increase across the sales force through optimization of customer facing and support resources. More effective client coverage improve regeneration and AI driven cross-head. We expect to see these benefits come through of already in H2, with low-consafe and marketing costs approaching 21% by 26.

Florian Treisch: Yeah, thank you very much for taking my question.

Rodolfo Savitzky: And yeah, this is in line with our, Great, thank you very much.

Julien Kepler: Yes. Thank you very much for taking my questions maybe two on my end so the first one.

Speaker Change: I am simply assume that it was not good.

Speaker Change: Deeper insights into these potentially going private transaction, but maybe just one on <unk>.

Speaker Change: The floating around the challenging environment do you want to flick simply has to be done.

Speaker Change: Pick any near term solution to that.

Speaker Change: Discussion, but it simply takes several months to go well is that just reflecting on which kind of environment at the moment.

Speaker Change: The second part is around.

Speaker Change: You confirmed EBITDA guidance so.

Speaker Change: If you look at Q2 margins for the first question on the B can you elaborate a bit on the one off item.

Rodolfo Savitzky: On a 12-month basis to eliminate seasonality, our cash conversion to the capex was 169 million or 66% of adjusted demand. The capex investment into our marketplace program, in terms of our net cash development, we had further outflows, including M&A and our now payments, significant return to shareholders in the form of dividends and the share buyback program of combined over 90 million as well as restructuring expenses. This led to a net debt position of 208.7 million at June 30, T.C.

Speaker Change: These five something million.

Speaker Change: Recurring let's go into each to Interstate you simply imply a nice margin uptick in H. Two so can you give us some more detail.

Speaker Change: The bridge from <unk>.

Speaker Change: Two months, thank you very much.

Unknown Executive: Thank you very much.

Brian Duffy: Okay, I'll take the first part, and then I'll hand it over to Rudolfo. So, as you know, in May, we established a transaction and committee. That transaction committee is made up of the independent board members. The board is committed to completing everything in a timely manner. When and if there is a further update to be provided, as the board will be doing so.

Speaker Change: Okay. So I'll take the first part and then I'll hand, it over to Rudolph Ho Hum.

Brian Duffy: As part of the new model, we launched hubs in Nashville and Barcelona to effectively target the, growing and underserved SME segment with a digital-led sales motion.

Florian Treisch: Maybe two on my end.

Operator: The next question comes from Christian Bader from ZKB, please go ahead.

Brian Duffy: We are also opening hubs in Bogota and Sao Paulo to serve the Latin American market. These hubs will initially focus on the Microsoft Tech Stack, including co-pilot and security solutions, before offering a broader portfolio.

Brian Duffy: Meanwhile, we reorganized our client coverage for the enterprise and corporate segments to enable our, account managers to go deeper with our larger customers to gain wallet share as well as funds for new logos.

Brian Duffy: Additionally, we strengthened our global alliance team with strategic hires.

Speaker Change: So I don't know.

Speaker Change: May we established a transaction committee that transaction Committee is made up of the independent Board members.

Brian Duffy: The team is working with our prioritized partners to build joint go-to-market programs and share targets, to cross and upsell our broader portfolio.

Speaker Change: The board is committed to completed and everything in a timely manner and when and if there is a further update to be provided at the board will be will be doing so.

Christian Bader: Yes, good morning, gentlemen.

Brian Duffy: But as we also said, when there is an update to provide specifically on this, the board certainly will be providing that.

Rodolfo Savitzky: At the end of the half-year networking capital was at 108.6 million a level similar to our viewing position last year. Our day sales outstanding have risen due to current market conditions and the growth of consumption-based offerings which involved accruing for the fixed commitment and invoicing later compared to enterprise agreements where it involves is issued upon delivery of the license. To very much the extent of customer payment cycle, we have managed to optimize our ISV payment terms.

Rodolfo Savitzky: And that is the extent that we can comment specifically in terms of potential transaction, and then I'll hand it over to Rudolfo.

Speaker Change: That is the extent that we can comment specifically.

Speaker Change: Or is there a potential transaction and then I'll hand, it over to Murdo.

Brian Duffy: And as we mentioned, we've seen early results on this with our other ISPs accelerating to double-digit growth in Q2.

Florian Treisch: The first one, I simply assume that you will not give us deeper insights into these potential going private transactions, but maybe just one on, This wording around the challenging environment, do you want to flex simply if we don't or should not expect any near-term solutions to that and that this discussion will simply take several months to go or is it just, The second part is around your confirmed EBTA guidance, so...

Christian Bader: I have three questions, please.

Dina Ibardi: Understood, understood.

Rodolfo Savitzky: Yeah, so Florian, thanks for the question.

Speaker Change: Yes, so corey and thanks for the question. So couple of questions here, one is around the EBITDA guidance.

Brian Duffy: Finally, we implemented an AI-based renewal model for the marketplace business line, and we'll roll it out across managed services in H2. We are also driving pricing excellence with successful pilots in Dock, the UK, Nordics, and Benelux.

Rodolfo Savitzky: So a couple of questions here. One is around the EVDA guidance. As I mentioned in my remarks, we expect an acceleration of revenue growth in the second half. This goes hand-in-hand with improved sales force productivity. You go to market model and the other important reference point is if you look at our H1 results, our margin at 23% is 100 basis points ahead of priority. So here it's very important to know our business has certain seasonality and certain patterns. It's important to keep an eye on the improvement year on year, and therefore we are confident to deliver the guidance of 24 and a half to 25.

Florian Treisch: If you look at Q2 margins, the first question would be, can you elaborate a bit on the one-off item in there, the five-something million, is that recurring also going into H2?

Dina Ibardi: Thanks very much.

Florian Treisch: And with that, you simply imply a nice margin uptick in H2.

Murdo: I mentioned in my remarks, we expect an acceleration of revenue growth in the second half.

Brian Duffy: Supporting our digital-first go-to-market approach, our marketplace platform facilitates bringing customers, and vendors together to disrupt our industry.

Murdo: This goes hand in hand with improved.

Rodolfo Savitzky: Working capital management remains a top priority. Some of the operational excellence measures we're putting in place will allow us to expedite collection by increasing the percentage of accurate invoices as well as providing greater transparency on overdue invoices for our collectors.

Murdo: <unk> supports both the beauty behind the new go to market model.

Florian Treisch: So can you give us some more details on the bridge from H1 margin to H2 margin?

Operator: Gentlemen, so far there are no further questions.

Speaker Change: And the other important reference point, if you look at our H one results our margin of 23% is a 100 basis point Takeda of priority and so it's very important to do you know our business has certain seasonality in certain patterns. It's important to keep an eye on the improvement year on year.

Brian Duffy: Our existing relationships and decades of tribal knowledge are significant advantages, versus the many generic marketplaces that are out there today.

Brian Duffy: The platform continues to gain traction in Q2, with the number of private subscriptions growing to over 35,000, and LTM growth sales increasing to 825 million Swiss francs. This translates to around 100 million of revenue, or 10% of group revenue for software one. We continue to add new features to enhance the customer experience. For example, split billing for multiple customer entities and scale out the platform by adding new vendors.

Brian Duffy: We are also focusing on automation of all back-end processes and aim to reach an end-to-end automated chain by the end of 2025.

Brian Duffy: Over the medium term, we expect this platform to become a key driver of both top-line growth and margin for software one. Cofile 365 has now been generally available for around two quarters.

Speaker Change: And therefore, we are continuing to deliver the guidance of 24 and a half to quantify that at all.

Brian Duffy: While we still improve momentum in many of our growth markets in H1 and most remain fully on track, the macroeconomic environment continues to affect client purchasing behavior. Specifically in DOC.

Rodolfo Savitzky: As Ryan already mentioned, as a result of continuous macroeconomic uncertainty impacting clients purchasing behavior and development in our application services business in Colombia, we now expect revenue growth for the food year of 7 to 9% in constant currency and we confirm our just a dividend margin target of 24.5 to 25.5%. We anticipate that positive impact on growth in the second half of the year as the new sales organization becomes fully operational.

Rodolfo Savitzky: Then, on the one hand, this is associated with primarily a couple of legal cases in emerging markets of Africa and China. And we definitely do not expect that this will be apparent in the second half.

Florian Treisch: Thank you very much.

Speaker Change: Then on the one offs. This is associated with primarily a couple of legal cases in emerging markets, South Africa and China.

Brian Duffy: Okay, Brian, I'll take the first part and then I'll hand it over to Rodolfo.

And we definitely do not expect that these will be recurring in the second half.

Speaker Change: Great. Thank you very much.

Unknown Executive: Thank you very much.

Speaker Change: <unk>.

Martin <unk>: As a reminder, if you wish to register for a question. Please press star followed by one. The next question comes from Martin <unk> from BNP Paribas. Please go ahead.

Christian Bader: Firstly, what is your amount of interest income and interest expense?

Brian Duffy: Thank you for your attention.

Brian Duffy: Secondly, our public sector application services business in Colombia has been impacted by the changing government.

Rodolfo Savitzky: Okay, so that's a very specific question.

Brian Duffy: Great.

Unknown Executive: Yeah, good morning. Thanks for taking my question. I have a couple.

Brian Duffy: So as you know, in May, we established a transaction committee, that transaction committee is made up of the independent board members.

Rodolfo Savitzky: Maybe I have to.

Brian Duffy: Well, thank you everybody for joining.

Rodolfo Savitzky: Also, as mentioned, we expect to maintain a productivity improvement in delivering support functions which in addition to operating leverage will need to continue the EBITA margin improvement compared to prior year in language guidance. Our midterm guidance remains unchanged.

Martin <unk>: Hi, good morning, Thanks for taking my question.

Speaker Change: Our company, maybe we can go one by one first one is really on the on the guidance when you sort of about 7%.

Unknown Executive: Maybe we can go one by one. The first one is really on the guidance when you deliver the 7% content currency in H1, and that requires obviously a bit of a step up in the second half. And you mentioned that it's primarily driven by gold to market, but what is also underpinned macro recovery in Europe as well. That's the first one.

Speaker Change: At constant currency and H, one that requires obviously a bit of a step up in the second half and you mentioned that it's primarily driven by go to market, but what this also underpinning macro recovery in.

Brian Duffy: Consequently, we have provided our revenue guidance to 7 to 9% growth, then from 8 to 10%.

Brian Duffy: The board is committed to concluding everything in a timely manner, and when and if there is a further update to be provided, the board will be doing so, and that is the extent that we can comment specifically in terms of a potential transaction, and then I'll hand it over to Rohit.

Brian Duffy: I'll now hand back to Brian for his closing remarks. Thanks, Rodolfo.

Speaker Change: In Europe as well that's the first one.

Brian Duffy: We have maintained our adjusted vision margin of 24.5 to 25.5%.

Brian Duffy: To conclude, we have delivered a solid set of results in the current environment and the implementation of vision of 2020-26 is well on track. We are not yet finished, but our progress in age range adds to our confidence in delivering on our 2020-26 targets which is maintained, revenue growth and a margin of approaching 28%.

Brian Duffy: I can take the first question. Thank you very. So we didn't see momentum in many of our growth markets in H1. We specifically called out and were very specific in what was driving the revised guidance change, and that is two things. Firstly, excellent, and that we thought specifically in doc in Q2 in terms of customer buying decisions. And then in addition, in our application services have business in Colombia only, and that was tied specifically to a government change and the end of a contract that we had, and then the non-renewal specifically of that contract on the heels of public government change.

Speaker Change: I can take the first question Martin and thank you for it. So we did see momentum in many of our growth markets and each one we specifically called out and we're very specific in what was driving the revised guidance change and that it's two things.

Rodolfo Savitzky: Yeah, so Florian, thanks for the question.

Rodolfo Savitzky: I think part of that you can see in the cash flow statement, right?

Brian Duffy: We appreciate you taking the time and have a great day.

Rodolfo Savitzky: So a couple of questions here.

Brian Duffy: Now, before moving on, I would like to briefly comment on the update on the Board of Directors.

Unknown Executive: Thank you, and now let's move on to the next Q&A. Questions on the phone are requested using only handsets and eventually turn off the volume of the webcast. Anyone who has a question may press star and one at this time.

Speaker Change: Firstly <unk>.

Speaker Change: No doubt that we saw specifically in dock in Q2.

Brian Duffy: Secondly, our public sector application services business in Columbia has been impacted by the changing government.

Rodolfo Savitzky: One is around the EBITDA guidance.

Speaker Change:

Speaker Change: The customers' buying decisions and then in addition in our application and services had business in Colombia, only and that was tied specifically to a government change in end.

Speaker Change: And have a contract that we had and then the nonrenewals specifically off that contract on the heels of a public government changed now having said that.

Brian Duffy: Now, having fed that, we are very happy with the pipeline progression that we have seen at the end of Q2 and the Q3 specifically in doc. With the new leadership that we have in place in January, we are very confident in terms of a strong performance in doc specifically in Q3.

Brian Duffy: Consequently, we have revised our revenue guidance to 7-9% growth, down from 8-10%.

Rodolfo Savitzky: As I mentioned in my remarks, we expect an acceleration of revenue growth in the second half.

Brian Duffy: We have maintained our adjusted even margin of 24.5-25.5%.

Rodolfo Savitzky: This goes hand in hand with improved sales post productivity behind the new go-to-market model.

Brian Duffy: Now, before moving on, I would like to briefly comment on the update from the Board of Directors. The board has received indications of interest of a potential going private transaction.

Brian Duffy: Discussions, although challenging given the business environment, are progressing and the board will provide further updates if and when required. Now looking at our financial results in more detail, we delivered solid growth of 7% in H1, with a similar level in Q2, benefiting from our global footprint, the breadth of our portfolio and improved execution across the business. Adjusted EBITDA grew by over 11%, with a margin of 23%, up one percentage point, reflecting our focus on profitable growth.

Speaker Change: We are very happy with the pipeline progression that we havent seen at the end of Q2 and into Q3, specifically and the new leadership that we have in place in January were very confident in terms of the hub and a strong performance and docs specifically in Q3.

Brian Duffy: Moving on to regional performance, DAX grew over 3%, primarily driven by lower results in the Microsoft business.

Brian Duffy: Momentum improves in Q2, up 6% driven by other ISBs and a few excellent customer wins in IT portfolio management and SAP services.

Florian Treisch: The first question comes from Florian Trash from Kepler. Please go ahead. The second part is around your confirmed EVDA guides.

Unknown Executive: And then the second question is on services. I mean, it has to celebrate quite a bit to mixing the digits now.

Speaker Change: And then the second question sorry, if it's on services I mean, it has decelerated quite a bit to mid single digits. Though is it also more macro or is it also market share driven because when you look at the other retailers that have reported in the last couple of quarters. The FX reported an acceleration in that services.

Rodolfo Savitzky: And the other important reference point is, if you look at our H1 results, our margin at 23% is 100 basis points ahead of prior year.

Rodolfo Savitzky: So here it's very important, you know, our business has certain seasonality and certain patterns, it's important to keep an eye on the improvement year on year.

Rodolfo Savitzky: And therefore, we are confident to deliver the guidance of 24 and a half to 25.

Rodolfo Savitzky: Then on the one of these is associated with primarily a couple of legal cases in emerging markets of Africa and China.

Rodolfo Savitzky: And we definitely do not expect that this will be recurring in the second.

Brian Duffy: It's had also more macro. Is it also market share driven? Because when you look at the other resellers that has reported in the last couple of quarters, they actually put an acceleration that services. What you agree that is also a bit of market share issues there. No, again, specifically that is tied to one line of business, correct patient services business and type to one geography to lend again, and I bet that they found that the government change and certainly not part of a larger macro economic environment that has led to a slight tweak in terms of our rights.

Speaker Change: What's your degree of has also picked up some market share issues there.

Unknown Executive: If you look at Q2 margins, the first question would be can you elaborate a bit on the one-off item in there? The five-something million is that recurring also going into H2 and with that you simply imply a nice margin up to Q2. Can you give us some more details on the bridge from H1 margin to H2 margin?

Speaker Change: No again, specifically that is tied into one line.

Speaker Change: Your line of business, our application services business is tied to one geography, Colombia Guyana.

Speaker Change: And based on that if the government change and certainly not part of a larger macroeconomic environment.

Speaker Change: Environment led to a slight tweak in terms of our guidance.

Brian Duffy: With new leadership in place since January, we have very good visibility on pipeline progression in Q3, although as mentioned, we do see the uncertain macroeconomic environment having a slightly larger impact than anticipated.

Brian Duffy: Thank you very much. Okay, I'll take the first part and then I'll hand it over to Rudolfo. So as you know, in May, we established a transaction and committee. That transaction committee is made up of the independent board members. The board is committed to completing everything in a timely manner. When and if there is a further update to be provided, as the board will be doing so. And that is the extent that we can comment specifically in terms of potential transaction and then I'll hand it over to Rudolfo.

Brian Duffy: The rest of the meal was over 4% driven by strong momentum in Southern Europe, particularly within services in Central and Eastern Europe. France and Italy both grew double digits, with Spain surpassing 20%.

Unknown Executive: Okay. Thank you.

Brian Duffy: ABAC delivered a strong H1, up over 10%.

Speaker Change: Okay. Thank you and then just I'm sorry, if I'm just like Coke co pilots I mean, you were quite a few this almost doubling so that's pretty pretty great, but then.

Brian Duffy: And then just the last one is on just some co co pilot. I mean, you've reported to us on the doubling. So that's pretty, pretty great. But then can you talk a bit about the market share that you have in co-pilot seats? Is that what you say, that it's greater than your current market share in Microsoft reselling, or is that more or less in line? So as thank you and we're very happy with the numbers in terms of the 600 that is in users and that doubles as you know, since the end of Q1 and we now have around 240 additional services engagements. And we're very happy with those services engagements where we are going deeper and deeper with our customers to explore how they can get the full benefits from co-pilot to help them bend the curve of productivity.

Brian Duffy: Growth slowed slightly in Q2, driven by China, which is currently a challenging market.

Brian Duffy: The Board has received indications of interest of a potential going-privileged transaction.

Speaker Change: Can you talk a bit about the market share that you have in co pilot seats.

Speaker Change: What did you say that it's greater than your current market share and Microsoft reselling or was that more or less in line.

Brian Duffy: Discussions, although challenging, giving the business environment, are progressing, and the Board will provide further updates if and when required.

Speaker Change: So thank.

Brian Duffy: Nevertheless, we have a broad presence in the region and remain confident in delivering a strong performance for the year.

Speaker Change: Thank you and we're very happy with the numbers in terms of the 600000 users.

Speaker Change: Doubles as you know since the end of Q1, and we now have around 240 additional services engagements and we're very happy with those services engagements, where we are going deeper and deeper with our customers to explore how they can get the full benefit from.

Brian Duffy: Yeah, so Florian, thanks for the question. So a couple of questions here. One is around the EVDA guidance. As I mentioned in my remarks, we expect an acceleration of revenue growth in the second half. This goes hand-in-hand with improved sales force productivity. You go to market model and the other important reference point is if you look at our H1 results are margin at 23% is 100 basis points ahead of priority. So here it's very important to you know our business has certain seasonality and certain patterns.

Brian Duffy: Now, looking at our financial results in more detail, we delivered solid growth of 7% in age 1, with a similar level in Q2, benefiting from our global preference, the breadth of our portfolio, and improved executions across the business.

Speaker Change: From co pilot to help them bend the curve on productivity, it's still very early days and now we are only reporting six months of trading because I do know copilot became available on January 16th we have been very clear that we aim to be partner number one for Microsoft.

Brian Duffy: Meanwhile, Noron was up by 15%, supported by several large customer wins in both orders.

Brian Duffy: And as we emphasized in February, North America is a priority market for us, and we intend to continue strengthening our organizations in the region to ensure we have the right capabilities to succeed there.

Brian Duffy: It's still very early days and that we are only reporting six months of trading because I do know CoPilot became available on January 15th. We have been very clear that we aim to be part number one for Microsoft. We are the only partner that I'm aware of that discloses our co-pilot numbers. And I will say that we are well on track to being part number one for co pilot. That we are very happy here and they are very happy in Seattle with us. So that 300,000 users per quarter, which you say that's a decent run rate, so that you could expect us on the Q3 or Q4?

Brian Duffy: LATAM grew by 10% with an outstanding 15% in Q2 and improved results across the majority of markets in the region.

Brian Duffy: Clearly the turnaround measures which have been implemented by our new leadership team are working and we see further upside with the ongoing launch of our new go-to-market model.

Brian Duffy: Turning to our business lines, Software Inside Marketplace was up over 6% in H1.

Brian Duffy: Adjusted even a group by over 11% with a margin of 23% of 1 percentage points reflecting our focus on profitable growth.

Brian Duffy: Our focus remains on being the number one partner for Microsoft, while supporting clients with exploring use cases, addressing data security and compliance concerns, and creating effective adoption programs.

Brian Duffy: Moving on to regional performance, that grew over 3% primarily driven by lower results in the Microsoft business.

Brian Duffy: By June 2024, we have reached around 600,000 cofile users, nearly double the number of users by the end of Q1.

Speaker Change: We are the only partner that I'm aware of that discloses our co pilot numbers and I will say that we are well on track to being partner number one for co pilots and we are very happy here and there and already halfway in Seattle with us.

Brian Duffy: It's important to keep an eye on the improvement year on year and therefore we are confident to deliver the guidance of 24 and a half to 25. Then on the one hand, this is associated with primarily a couple of legal cases in emerging markets of Africa and China. And we definitely do not expect that this will be apparent in the second half.

Speaker Change: So that 300000 users per quarter would you say, that's a decent run rate. So that you could expect us on the Q3 or Q4.

Brian Duffy: I think what we've seen is customers have started; some have started small, and now I can just mention some of the examples that we gave you. We're announcing the customer deciding to do a math role across the entire organization for co-pilot, and we expect to see the momentum with co-pilot continuing and accelerating into the second half of the year. So for thank you very much.

Speaker Change: I think what we've seen that customers haven't started some have started small and now I can say that the examples that we gave you we're announcing the customers deciding to do a mass rollout across the entire organization for co pilots and we expect to see the momentum like copilot, continuing and accelerating into the second half of the year.

Unknown Executive: Thank you very much.

Unknown Executive: Yeah, good morning. Thanks for taking my question. I have a couple.

Speaker Change: That's helpful. Thanks very much.

Unknown Executive: Maybe we can go one by one. The first one is really on the guidance when you deliver the 7% content currency in H1 and that requires obviously a bit of a step up in the second half. And you mentioned that it's primarily driven by gold to market, but what is also underpinned macro recovery in Europe as well. That's the first one.

Speaker Change: Yeah.

Unknown Executive: For any further question, please press star followed by one, star followed by one.

Speaker Change: Or any further question. Please press star followed by one.

Followed by <unk>.

Speaker Change: <unk>.

Florian Treisch: We have a follow-up question from Florian Treisch from Kepler; please go ahead. Great, thank you. Then some follow-up for my end.

Speaker Change: We have a follow up question from Florida.

Brian Duffy: We have also delivered an additional 240 services engagements in Q2.

Speaker Change: Please go ahead.

Speaker Change: Great. Thank you then some follow up two follow ups on my end so the ban on coal.

Brian Duffy: Now let's turn to some examples.

Rodolfo Savitzky: Great, thank you very much.

Brian Duffy: Arendt, a Luxembourg law, tax, and business services firm, is a great example of how we've been partnering with clients to explore use cases for Cofile 365 to transform their ways of working. They were looking to enhance their data infrastructure to better analyze and utilize data for improving sales and marketing operations. As a solution, we helped them build an enterprise data warehouse on Microsoft Azure.

Brian Duffy: Today, Amrest has a scalable solution which accommodates their growing data needs and provides them with deeper insights into customer preferences and behaviors, and enabling them to deliver a more personalized and effective marketing strategy.

Operator: As a reminder, if you wish to register for a question, please press star followed by 1.

Florian Treisch: So the one on co-pilot as well, so you're obviously happy with the adoption rate now clearly going up towards a decent level, I would say, for the, as you said, only six months on the market. Can you give us also, let's call it first indication on RE, indications or kind of performance to really get an impression that you get a feeling if you're 15% adoption rate you assume and you brand it as conservative in the past, is it really still a very conservative date from your end? Is it really a game-changing solution for the client for a respective price tag?

Brian Duffy: I can take the first question. Thank you very. So we didn't see momentum in many of our growth markets in H1. We specifically called out and were very specific in what was driving the revised guidance change, and that is two things. Firstly, excellent and that we thought specifically in doc in Q2 in terms of customer buying decisions. And then in addition, in our application services have business in Colombia only and that was tied specifically to a government change and the end of a contract that we had and then the non renewal specifically of that contract on the heels of public government change.

Speaker Change: So you're obviously happy with the adoption right now clearly coming up towards the decent level I would say, it's only six months into market can you give us also let's call. It first indication on our E indications.

Operator: The next question comes from Martin Jungfleisch from BNP Paribas, please go ahead.

Brian Duffy: Momentum improving Q2 up 6% driven by other IFB and a few excellent customer wins in IT portfolio management and SAP services.

Speaker Change: Performance to really get an impression that because.

Speaker Change: So you get to feeling if you have 15% adoption rate do you assume in your branded as conservative.

Speaker Change: Is it really still a very conservative date from you.

Speaker Change: Number from your end.

Speaker Change: He said really game changing solution for the client for their respective price deck in.

Florian Treisch: And the second one would be in general around Microsoft. You mentioned around 5% gross dynamic; can you provide some feedback where is this coming from? Is this driven by low underlying demand by lowered commission levels for key products, or really to understand if that is a headwind for the coming quarters as well? Thank you.

Speaker Change: And the second one being generated on Microsoft you mentioned around 5% growth dynamic can you provide some feedback where it's coming.

Speaker Change: Coming from is this driven by lower underlying demand by lowered commission levels for key products.

Brian Duffy: With new leadership in place in January, we have very good visibility on pipeline progression in Q3, although as mentioned, we do see the uncertain macroeconomic environment having a slightly larger impact than anticipated.

Brian Duffy: Now, having fed that, we are very happy with the pipeline progression that we have seen at the end of Q2 and the Q3 specifically in doc with the new leadership that we have in place in January were very confident in terms of a strong performance in doc specifically in Q3.

Really to understand if that does the headwind for the coming quarters as well. Thank you.

Brian Duffy: Thanks Florian, and so as you know and as I said, we're very happy with the progress that we're making. We do anticipate, as I said to Martin, that we will see a continued acceleration for demand from our customers around co-pilot. While I can say it's given that it's still early days, if we continue to see that acceleration through the second half of the year, it is fair to assume that we will be issuing a new target for ourselves in terms of the conversion of our users. That, you know, we have 12.5 million users that were supporting from a Microsoft perspective, and we issued a target to convert 15% of those.

Speaker Change: Thanks, Brian So as you know and as I said, we're very happy with the <unk>.

Martin Jungfleisch: Yeah, good morning.

Rodolfo Savitzky: Now with that, I will hand over to Rudolfo, who will take us through our financial performance in H1.

Speaker Change: Progress that we're making.

Martin Jungfleisch: Thanks for taking my question.

Rodolfo Savitzky: Thank you, Brian.

Speaker Change: We do anticipate it.

And Martin is that we will see a continued acceleration and demand from our customers around co pilots.

Brian Duffy: The rest of the meal with a over 4% driven by strong momentum in southern Europe, particularly within services and central and eastern Europe.

Brian Duffy: And then the second question is on services. I mean, it has to celebrate quite a bit to mixing the digits now. It's had also more macro is it also market share driven because when you look at the other resellers that has reported in the last couple of quarters, they actually put an acceleration that services what you agree that is also a bit of market share issues there. No, again, specifically that is tied to one line of business, correct patient services business and type to one geography to lend again, and I bet that they found that the government change and certainly not part of a larger macro economic environment that has led to a slight tweak in terms of our rights. Okay. Thank you.

Brian Duffy: France and Italy both grew double digits with fame surpassing 20%.

Rodolfo Savitzky: I'd like to extend a warm welcome from my side as well.

Martin Jungfleisch: I have a couple, maybe we can go one by one.

Speaker Change: What I can say given that it's still early days, if we continue to see that acceleration through the second half of the year. It is fair to assume that we will be issuing a new target for ourselves in terms of the conversion of our users that we know we have $12 5 million users that we're supporting from a Microsoft.

Brian Duffy: A back delivered a strong H1 of over 10%, growth from slightly in Q2 driven by China, which is currently a challenging market.

Brian Duffy: Nevertheless, we have a broad presence in the region and remain confident in delivering a strong performance for the year.

Speaker Change: Perspective, and we issued the targeting to convert 15% of those if we continue to operate as we have in the first six months of this year. It's fair to assume that we will see a change in our targets that we will issue to the to our keeping internally and then externally as well and then I would also comment.

Brian Duffy: If we continue to operate as we have in the first six months of this year, it's fair to assume that we will see a change in a target that we will issue to our team internally and then externally as well. And then I would also comment that co-pilot can be viewed two ways. Firstly, there's the out of the box co-pilot; then secondly, there is specific use cases that customers can explore around co-pilot that are customized for their business. We're very fortunate that we have a diversified portfolio; secondly, the relationship that we have with customers and our understanding of their business.

Martin Jungfleisch: First one is really on the on the guidance when you deliver 7% quantum currency in H1 and that requires obviously a bit of a step up in the second half.

Martin Jungfleisch: And you mentioned that it's primarily driven by go-to-market, but would this also underpin a macro recovery in Europe as well?

Brian Duffy: Meanwhile, Nauron with up by 15% supported by several large customer wins in both orders.

Brian Duffy: And as we emphasize in February, North America is a priority market for us, and we intend to continue strengthening our organization in the region to ensure we have the right capabilities to succeed there.

Brian Duffy: Lata grew by 10%, with an outstanding 15% in Q2, and improved results across the majority of markets in the region.

Brian Duffy: And then just the last one is on just some co co pilot. I mean, you've reported to us on the doubling. So that's pretty, pretty great. But then can you talk a bit about the market share that you have in in co pilot seats? Is that what you say that it's greater than your current market share in Microsoft reselling or is that more or less in line? So as thank you and we're very happy with the numbers in terms of the 600 that is in users and that doubles as you know, since the end of q1 and we now have around 240 additional services engagements and we're very happy with those services engagements where we are going deeper and deeper with our customers to explore how they can get the full benefits from co pilot to help them bend the curve of productivity.

Speaker Change: And that <unk>.

Speaker Change: Copilot can be viewed two ways. Firstly does the out of the box co pilot. Then secondly, there is and specific use cases that customers can explore around core pilots that.

Brian Duffy: Clearly, the turnaround measures that have been implemented by our new leadership team are working and we see further upside that the ongoing launch of our new go-to-market model.

Martin Jungfleisch: That's the first one.

Brian Duffy: Turning to our business line, sovereign cloud marketplace was up over 6% in H1.

Brian Duffy: Microsoft Billings reached $11.9 billion US dollars up 8% year and year, which translated into a revenue growth at a slightly lower level.

Brian Duffy: In other ISBs, we delivered double digits growth in Q2, supported by successful renewals and pricing initiatives launched earlier this year, and an increased focus on our prioritized partners.

Speaker Change: Our customized for their business, we're very fortunate to have one we have a diversified portfolio secondly, the relationship that we have with customers and how our understanding of their business, that's where we know we've got to hold the hand of a customer and help them explore how they can use co pilot to truly change the business and at risk.

Rodolfo Savitzky: Let me begin by discussing our financial performance at the group level.

Rodolfo Savitzky: Revenue growth in H1 was solid at 7%, in line with our expectations, with broad-based growth across the regions and business lines.

Brian Duffy: I can take the first question, Martin, and thank you for it.

Rodolfo Savitzky: Our focus on operational excellence continued to yield positive results. We reduced delivery costs offsetting the effect of portfolio mix changes. These resulted in a 3 percentage points increase in contribution margin, both in H1 and in Q2.

Brian Duffy: So we didn't see momentum in many of our growth markets in H1. We specifically called out and were very specific in what was driving the revised guidance change. And that is two things. Firstly, a slowdown that we saw specifically in DOC in Q2, in terms of customers' buying decisions. And then in addition, in our application services business in Colombia only, and that was tied specifically to a government change and the end of a contract that we had, and then the non-renewal specifically of that contract on the heels of a government change.

Brian Duffy: Now, having said that, we are very happy with the pipeline progression that we have seen at the end of Q2 and into Q3 specifically in DOCKS.

Brian Duffy: And with the new leadership that we have in place in January, we're very confident in terms of a strong performance in DOCKS specifically in Q3.

Brian Duffy: Double-in-tribe services delivered over 8% revenue growth in H1. Growth was driven by strong momentum in triad services across all three hyperscalers, IT portfolio management, as well as FAP service.

Brian Duffy: And then the second question is on services.

Brian Duffy: That's where we now get to hold a hand of a customer and help them explore how they can use co-pilot to truly change the business and receive a return on that investment and much progress, and they will have a new suit in the past.

Martin Jungfleisch: I mean, it has decelerated quite a bit to mixing the digits now.

Rudolph: Return on that investment and much quicker than they would have been used to in the past and then ill hand, the second part of your question to Rudolph.

Rodolfo Savitzky: And then I'll hand the second part of the question to Rudolph.

Rodolfo Savitzky: SG&A expenses increased by 13% in H1, with productivity improvements largely offset by growth in Q2.

Rodolfo Savitzky: That's a program on Microsoft. If we step back and look at the first, we start with the billions for the half year. Business will buy 8%, which is a healthy level, and as we have communicated before, our focus is to accelerate what is called the subscription base, the Ximple, the CSP. And here we saw a very healthy growth in billions, significantly about the average. Not all of that translated into revenue growth. When we look at the x-imposed, it was ahead of buildings. Part of that was a play to reduce a little bit the front end margin to accelerate the volume growth.

Brian Duffy: Microsoft Billings reached $11.9 billion of 8% year-on-year, which translated into a revenue growth at a slightly lower level.

Martin Jungfleisch: Is it also more macro?

Rodolfo Savitzky: Our adjusted EBITDA margins stood at 23% for the first half, reflecting a 1% point increase, versus last year. In terms of foreign exchange, the Swiss franc continued to strengthen in Q1 but remained, relatively stable compared to key currencies in Q2. Overall this resulted in a negative impact on revenue of 2.4 percentage points in H1.

Rudolph: Program on Microsoft if we step back and look at the first we start with the billings for the half year.

Brian Duffy: In other ISBs, we deliver double-digit growth in Q2, supported by successful renewals and pricing initiatives launched earlier this year, and an increased focus on our prioritised partners.

Rodolfo Savitzky: However, thanks to our natural hedge with similar forex exposures in expenses, the impact, on the adjusted EBITDA margin was once again minimal. This bridge illustrates the year-on-year changes in adjusted EBITDA, highlighting how we achieved, margin expansion through revenue growth and enhanced productivity while investing in the business. Beginning with delivery costs, we continued to improve productivity by cutting down on, higher cost external resources and shifting more internal resources from local to remote delivery teams.

Brian Duffy: Tribe Services delivered over 80% revenue growth in H1. Growth was driven by strong momentum in cloud services across all three hyperscalers, IT portfolio management, as well as SAP services.

Rodolfo Savitzky: The increase in sales and marketing was due to ramp-up investments across key countries, as part of our revised go-to-market model.

Brian Duffy: Meanwhile, application services was impacted by weak public sector results in Colombia following the change of government.

Rodolfo Savitzky: Admin expenses grew due to investments behind Vision 2026, organic personal cost increases, and certain one-offs. These were partially offset by productivity gains as a result of operational exhaust.

Brian Duffy: Transforming our global market model and driving sales productivity are key to building a world class organization which leverages our existing scale and reach.

Brian Duffy: In H1, we made significant progress completing the implementation of our new go-to-market model in key markets, including Dock, North America, UK and Ireland, Mexico, Brazil, and India. These markets account for around 60% of our revenue, and the remaining 40% will transition during H2.

Brian Duffy: As part of the new model, Elon's hopes in Nashville and Barcelona to effectively target the growing and underserved SME segment with a digital-led sales motion.

Brian Duffy: Professor, meanwhile, application services was impacted by weak public sector results in Colombia following the change of government.

Brian Duffy: It's still very early days and that we are only reporting six months of trading because I do know co pilot became available on January 15th. We have been very clear that we aim to be part number one for Microsoft. We are the only partner that I'm aware of that discloses our co pilot numbers. And I will say that we are well on track to being part number one for co pilot that we are very happy here and they are very happy and Seattle with us.

Brian Duffy: We are also opening hubs in Bogota and Sao Paulo to serve the Latin American market. These hubs will initially focus on the Microsoft Tech Stack, including co-pilots and security solutions, before offering a broader portfolio.

Rodolfo Savitzky: Moving on to the business line view.

Brian Duffy: Meanwhile, we reorganize our client coverage for the enterprise and corporate segments to enable our account managers to go deeper with our larger customers to gain wallet share as well as funds for new logos.

Rodolfo Savitzky: In marketplace, revenue growth in H1 was 6.1%.

Rudolph: <unk> grew by 8%, which is a healthy level.

Brian Duffy: Additionally, we strengthened our global alliance team with strategic hire.

Brian Duffy: The team is working with our prioritised partners to build joint go-to-market programmes and share targets to cross and upsell our broader portfolio.

Brian Duffy: And as we mentioned, we've seen early results on this, with our other ISPs accelerating to double-digit growth in Q2.

Martin Jungfleisch: Is it also market share driven?

Brian Duffy: Finally, we implemented an AI-based renewal model for the marketplace business line, and we'll roll it out across managed services in H2. We are also driving pricing excellence with successful pilots in Dock, the UK, Nordics, and Benelux.

Martin Jungfleisch: Because when you look at the other resellers that have reported in the last couple of quarters, they've actually reported an acceleration in their services.

Speaker Change: As we as we have communicated before our focus is to accelerate what is called the subscription base and the Dx simple CSP in Q we saw.

Brian Duffy: Supporting our digital-first, go-to-market approach, our marketplace platform facilitates bringing customers and vendors together to disrupt our industry.

Brian Duffy: Our existing relationships and decades of tribal knowledge are significant advantages versus the many generic marketplaces that are out there today.

Brian Duffy: The platform continues to gain traction in Q2, with the number of private subscriptions growing to over 35,000, and LTM growth sales increasing to 825 million Swiss francs. This translates to around 100 million of revenue or 10% of group revenue for SoftwareOne.

Brian Duffy: We continue to add new features to enhance the customer experience. For example, split billing for multiple customer entities and scale out the platform by adding new vendors.

Brian Duffy: Transforming our voter market model and driving sales productivity are key to building a world-class organization which leverages our existing scale and reach. And H1, we made significant progress completing the implementation of our new voter market model in key markets, including DAW, North America, UK and Ireland, Mexico, Brazil, and India.

Brian Duffy: We are also focusing on automation of all back-end processes and aim to reach an end-to-end automated chain by the end of 2025.

Brian Duffy: Over the medium term, we expect this platform to become a key driver of both top line growth and margin for SoftwareOne.

Brian Duffy: CoPilot 365 has now been generally available for around two quarters.

Brian Duffy: So would you agree that it's also a bit of market share issues there?

Brian Duffy: Our focus remains on being the number one partner for Microsoft, while supporting clients with exploring use cases, addressing data security and compliance concerns, and creating effective adoption programs.

Speaker Change: So it's fairly healthy growth in building significantly above the average.

Speaker Change: Not all of that translated into into revenue growth.

Brian Duffy: By June 2024, we have reached around 600,000 copilot users, nearly double the number of users by the end of Q1.

Brian Duffy: We have also delivered an additional 240 services engagements in Q2.

Speaker Change: When we look at the symposium was a hit on billings.

Brian Duffy: So that 300,000 user per quarter, which you say that's a decent run rate, so that you could expect us on the Q3 or Q4? I think what we've seen is customers have started, some have started small and now I can just mention some of the examples that we gave you. We're announcing the customer deciding to do a math role across the entire organization for co-pilot and we expect to see the momentum with co-pilot continuing and accelerating into the second half of the year.

Speaker Change: Part of that was a play to reduce a little bit at the front end margin to accelerate the boardroom. So all in all we see the development in Microsoft that's quite healthy consistent results quarter on portrait as we've communicated in the mid single digit and this is in line with our plan.

Rodolfo Savitzky: As in Q1, the Microsoft business maintained revenue growth in the mid-single digits while, growth in other ISVs accelerated to double digits in Q2, benefiting from an increased focus on prioritized partners.

Rodolfo Savitzky: So, all you know, we see the development in Microsoft as quite healthy, consistent resource quarter and quarter as we communicate in the mid-single digit.

Rodolfo Savitzky: Thanks to a strong decline in delivery costs, contribution margin in marketplace was 88.4%, reflecting an increase of 2 percentage points versus last year.

Rodolfo Savitzky: We adjusted EBITDA margins to that 50.2%, up 1 percentage point compared to the prior, year.

Rodolfo Savitzky: In services, growth was primarily driven by cloud services, IT portfolio management and, SAP services. We achieved a notable increase in contribution margin, reaching 43.7% for H1, which represents, a 4.8 percentage point improvement compared to the prior year.

Rodolfo Savitzky: H1A increased at a lower rate than contribution margin, resulting in an adjusted EBITDA margin, of 7.3%, 4.2 percentage points up from last year. And it is worthwhile mentioning that services achieved an 11% adjusted EBITDA margin in, Q2.

Rodolfo Savitzky: I am pleased to report that we have now completed our operational excellence program launched, in early 2030. Final annualized cost savings amounted to $76 million compared to the rate $70 million, target of which $7 million have been reinvested in growth initiatives.

Rodolfo Savitzky: As Brian outlined earlier, we have completed the implementation of the new go-to-market, model across our key markets, representing the majority of our web.

Rodolfo Savitzky: This program has laid the foundation for a stronger, more resilient organization ensuring, Well, we will no longer report our savings related to the program.

Rodolfo Savitzky: We will, of course, continue to control costs and drive productivity improvement.

Rodolfo Savitzky: Among the initiatives ongoing, we will increasingly utilize AI-driven recommendations to drive, salesforce effectiveness.

Rodolfo Savitzky: We will continue to internalize and ride short delivered resources.

Rodolfo Savitzky: And lastly, in our finance shared service centers, we will further standardize and automate, processes with increased focus on the order-to-cash process.

Rodolfo Savitzky: The remainder will be done in H2.

Brian Duffy: These markets account for around 60% of our revenue and the remaining 40% will transition during H2.

Unknown Executive: And thank you very much.

Rodolfo Savitzky: With the new coverage model, we expect productivity to increase across the salesforce through, optimization of customer-facing and support resources, more effective client coverage, improved lead generation, and AI-driven cross-sell.

Speaker Change: Great. Thank you very much.

Brian Duffy: Now let's turn to some examples.

Brian Duffy: No, again, specifically that is tied to one line of business or occupation services business and tied to one geography, Columbia, and as I said, based on the government change, and certainly not part of a larger macroeconomic environment that has led to a slight tweak in terms of our, Okay, thank you.

Brian Duffy: Arendt, a Luxembourg law, tax, and business services firm, is a great example of how we've been partnering with clients to explore use cases for coproduct 365 to transform their ways of working, as part of our holistic co-pilot advisory service SoftwareOneTogether, brought together the firm's most relevant stakeholders to showcase Copilot's capabilities. We demonstrated its integration with the 365 Suite, highlighting its potential to streamline content creation, data analysis, legal research, and translation.

Brian Duffy: The SoftwareOne team also proposed new, innovative uses, such as a chatbot to support the legal team.

Christian Bader: The next question comes from Christian Bader from ZKB. Please go ahead. Yes, good morning, gentlemen. I have three questions, please.

Christian: The next question comes from Christian Please.

Rodolfo Savitzky: We expect to see these benefits come through already in H2, with local sales and marketing, costs approaching 21% by 2026.

Brian Duffy: And now, based on these results, Arendt intends to expand the use of CoPilot throughout its entire organization.

Martin Jungfleisch: And then just the last one is on just on Copilot.

Rodolfo Savitzky: On a 12-month basis, to eliminate seasonality, our cash conversion to the CapEx was $169, million, or 66% of adjusted input. The CapEx investment into our marketplace portfolio.

Speaker Change: Please go ahead.

Brian Duffy: In addition to co-partners, we continue to focus on our expanded services in high-growth segments such as data and AI, supporting mid-market clients with getting their data in order.

Martin Jungfleisch: I mean, you reported users almost doubling.

Christian Please: Yes, good morning, gentlemen, I have three questions. Please firstly what is your amount of interest income and interest expense.

Rodolfo Savitzky: In terms of our net cash development, we had further outflows, including M&A and earn-out, payments, significant return to shareholders in the form of dividends and the share buyback program of combined over $90 million, as well as restructuring expenses. This led to a net debt position of $208.7 million at June 30 this year.

Brian Duffy: An example of this is Amrest, a restaurant operator in Europe, managing a diverse portfolio of well-known franchises, such as KFC, Pizza Hut, and Starbucks. They were looking to enhance their data infrastructure to better analyze and utilize data for improving sales and marketing operations. As a solution, we helped them build an enterprise data warehouse on Microsoft Azure. Today, AMRATS has a scalable solution, which accommodates the growing data needs and provides them with deeper insights into customer preferences and behaviors and enabling them to deliver a more personalized and effective marketing strategy.

Rodolfo Savitzky: At the end of the half-year, net working capital was at $182.6 million, a level similar to, our June position last year. Our day sales outstanding have risen due to current market conditions and the growth of, consumption-based offerings, which involved accruing for the fixed commitment and invoicing later compared to enterprise agreements where the invoice is issued upon delivery of the license. To better match the extended customer payment cycle, we have managed to optimize our ISV, payment terms.

Brian Duffy: A part of the new model, Elon's hope and Nashville and Barcelona to effectively target the growing and underserved SME segments with a digital-led sales motion.

Unknown Executive: So for thank you very much.

Rodolfo Savitzky: Working capital management remains a top priority. Some of the operational excellence measures we're putting in place will allow us to expedite, collection by increasing the percentage of accurate invoices, as well as providing greater transparency on overdue invoices to our collectors.

Unknown Executive: Firstly, what is your amount of interest income and interest expense? Okay, so that's a very specific question. Maybe I have two. I think part of that you can see in the casual statement, right? Because, of course, this is something we report.

Rodolfo Savitzky: As Brian already mentioned, as a result of continued macroeconomic uncertainty impacting, clients' purchasing behavior and developments in our application services business in Colombia, we now expect revenue growth for the full year of 7% to 9% in constant currency, and we confirm our adjusted EBITDA margin target of 24.5% to 25.5%.

Rodolfo Savitzky: Our mid-term guidance remains unchanged.

Rodolfo Savitzky: We anticipate a positive impact on growth in the second half of the year as the new, sales organization becomes fully operational.

Brian Duffy: We are also opening hope in Bogota and South Palo to serve the Latin American market.

Unknown Executive: For any further question please press star followed by one, star followed by one.

Rodolfo Savitzky: Also, as mentioned, we expect to maintain our productivity improvement in delivery and, support functions, which, in addition to operating leverage, will lead to continued EBITDA margin improvement compared to prior year in line with guidance.

Speaker Change: Okay.

Brian Duffy: I'll now hand back to Brian for his closing remarks.

Speaker Change: Okay. So that's a very specific question.

Martin Jungfleisch: So that's pretty, pretty great.

Brian Duffy: These hope will initially focus on the Microsoft tech stack, including co-pigas and security solutions, before offering a broader portfolio.

Florian Treisch: We have a follow-up question from Florian Treisch from Kepler, please go ahead. Great, thank you then some follow-up for my end. So the one on co-pilot as well, so you're obviously happy with the adoption rate now clearly going up towards the decent level, I would say, for the as you said, only six months on the market, can you give us also, let's call it first indication on RE, indications or kind of performance to really get an impression that you get a feeling if you're 15% adoption rate you assume and you brand it as conservative in the past, is it really still a very conservative date from you, number from your end?

Brian Duffy: Thanks, Rodolfo.

Speaker Change: Maybe I have to.

Brian Duffy: To conclude, we have delivered a solid set of results in the current environment and the, implementation of Vision 2026 is well on track. We are not yet finished, but our progress in HBM adds to our confidence in delivering, on our 2026 targets, which is mid-teens revenue growth and a margin approaching 28%.

Brian Duffy: Meanwhile, we reorganize our client coverage for the enterprise and corporate segments to enable our Kent managers to go deeper with our larger customers to gain wallet share as well as funds for new logos.

Speaker Change: I think part of that you can see in the cash flow statement, Brian because of course the team.

Martin Jungfleisch: But then, can you talk a bit about the market share that you have in Copilot seats?

Brian Duffy: Additionally, we strengthen our global aligned team with strategic hire.

Brian Duffy: Thank you, and now let's move on to the Q&A.

Martin Jungfleisch: Is that, would you say that it's greater than your current market share in Microsoft reselling?

Rodolfo Savitzky: Because, of course, this is...

Speaker Change: This is.

Martin Jungfleisch: Or is that more or less in line?

Rodolfo Savitzky: This is something we report.

Speaker Change: Something we report let me follow up separately with you Christian Okay, alright with the breakdown.

Unknown Executive: Let me follow up separately with you, Christian. Okay, all right.

Operator: We will now begin the question-and-answer session.

Speaker Change: Yes.

Rodolfo Savitzky: Okay, then secondly, what do you expect in terms of networking capital development for the second half of the year? Yeah, so look, the Networking Capital is very secretive. When you look at the graph, it's absolutely clear that the level in the half year, like June, is very different from the level we see in December. And here you do so. Actually, we had a negative connection capital of December.

Rodolfo Savitzky: Let me follow up separately with you, Christian, if you don't mind.

Speaker Change #100: Okay, and then secondly.

What do you expect in terms of net working capital development for the second half of the year.

Speaker Change #100: Yes.

Brian Duffy: Now with that, I will hand over to Rodolfo, who will take us through our financial performance in H1.

Christian Bader: Okay, then secondly, what do you expect in terms of network and capital development for the second half of the year?

Speaker Change #101: Net working capital is very cheap.

Speaker Change #102: What when you look at the graph you.

Speaker Change #102: Absolutely clear that the the level of debt at the half year.

Florian Treisch: Is it really a game-changing solution for the client for a respective price tag? And the second one would be in general around Microsoft, you mentioned around 5% gross dynamic, can you provide some feedback where is this coming from? Is this driven by low underlying demand by lowered commission levels for key products or really to understand if that is a headwind for the coming quarters as well?

Speaker Change #103: It is very different from what.

Speaker Change #104: We've seen December and here you saw actually we had a negative.

Speaker Change #103: Catherine.

Catherine: But so we expect a similar level.

Rodolfo Savitzky: So we expect a similar level as in December 23 to have in December 24. All right, okay.

Catherine: <unk> has seen December 'twenty three to have in December 24.

Speaker Change #106: Alright, Okay, and finally, what is the amount of factoring.

Rodolfo Savitzky: Yeah, so the net working capital is very cyclical.

Brian Duffy: Thank you. Thanks Florian, and so as you know and as I said we're very happy with the progress that we're making and we do anticipate as I said to Martin that we will see a continued acceleration and for demand from our customers around co-pilot, while I can say it's given that it's still early days, if we continue to see that acceleration through the second half of the year, it is fair to assume that we will be issuing a new target for ourselves and turns up the conversion of our users, that you know we have 12.5 million users that were supporting from a Microsoft perspective and we issued a target to convert 15% of those.

Rodolfo Savitzky: And finally, what is your amount of factoring? It remains constant at the round. It's below 200. Okay, all right.

Brian Duffy: The team is working with our prioritized partners to build joint global market programs and share targets to cross and upsell our broader portfolio.

Speaker Change #106: Okay.

Speaker Change #107: <unk> remains constant at around it it's below 200.

Speaker Change #107: Okay alright, thank you.

Rodolfo Savitzky: Thank you, Brian.

Unknown Executive: Thank you.

Operator: Anyone who wishes to ask a question may press star and 1 on the touch-tone telephone. You will hear a tone to confirm that you have entered the queue.

Unknown Executive: Once again, to ask a question, please press star followed by one.

Speaker Change #108: Once again to ask a question. Please press star followed by one.

Rodolfo Savitzky: I'd like to extend a warm welcome from my side.

Rodolfo Savitzky: Let me begin by discussing our financial performance at the group level.

Operator: If you wish to remove yourself from the question queue, you may press star and 2.

Vinay Bardee: The next question comes from Vinay Bardee from Cantor Fitzgerald. Please go ahead.

Vinay <unk>: The next question comes from Vinay <unk> from Cantor Fitzgerald. Please go ahead.

Rodolfo Savitzky: Revenue growth in H1 was solid at 7%, in line with our expectations, with broad-based growth across the regions and business lines.

Rodolfo Savitzky: Our focus on operational excellence continues to yield positive results.

Rodolfo Savitzky: We reduced delivery costs of setting the effect of portfolio mix change. These resulted in a three percentage points increase in contribution margin, both in H1 and in Q.

Rodolfo Savitzky: Morning, Jens. Just one question on your go-to-market restructuring expenses for the full year. I think I see 14 million for the half year. Can you give some guidance for the remainder of the year, please? Yeah, we expect a similar level. The mix will change. You, of course, cannot see inside the components of the mix. Of course, part of the 14 million you see in age one is expenses associated with the advice of supporting us on the program that will be faced down during the second half. And of course, you will see the full reorganization impacting in the second half.

Good morning, Gents, just one question on your go to market restructuring expenses for the full year I think I see $14 million for the half here can you give some guidance for the remainder of the year. Please.

Operator: Questioners on the phone are requested to use only handsets and, eventually, turn off, the volume of the webcast.

Rodolfo Savitzky: When you look at the graph, it's absolutely clear that the level in the half year, like June, is very different from the level we see in December.

Operator: Anyone who has a question may press star and 1 at this time.

Rodolfo Savitzky: And here, actually, we had a negative net working capital last December.

Rodolfo Savitzky: SG&A expenses increased by 13% in H1, with productivity improvements largely offset by growth in value, are adjusted EBITDA margins to 23% for the first half, reflecting a one percentage point increase versus last.

Rodolfo Savitzky: In terms of foreign exchange, the Swiss franc continued to strengthen in Q1 but remained relatively stable compared to key currencies in Q2. Overall, this resulted in a negative impact on revenue of 2.4 percentage points in H1. However, thanks to our natural hedge with similar forex exposures in expenses, the impact on the adjusted EBITDA margin was once again minimal.

Operator: The first question comes from Florian Dreisch from Kepler.

Rodolfo Savitzky: This bridge illustrates the year-on-year changes in adjusted EBITDA, highlighting how we achieve margin expansion through revenue growth and enhanced productivity while investing in the, Beginning with delivery costs, we continue to improve productivity by cutting down on higher cost external resources and shifting more internal resources from local to remote delivery.

Florian Treisch: Please go ahead.

Rodolfo Savitzky: Decreasing sales and marketing was due to ramp up investments across key countries as part of a revised go to market.

Brian Duffy: And as we mentioned, we've seen early results on this with our other ISBs accelerating to double digit growth in Q2.

Brian Duffy: If we continue to operate as we have in the first six months of this year, it's fair to assume that we will see a change in a target that we will and issue to our team internally and then externally as well. And then I would also comment that co-pilot can be viewed two ways. Firstly, there's the out of the box co-pilot, then secondly there is and specific use cases that customers can explore around co-pilot that are customized for their business.

Rodolfo Savitzky: Admin expenses grew due to investments behind Vision 2026. Organic personal cost increases in certain WAMAs. These were partially offset by productivity gains as a result of operational.

Rodolfo Savitzky: So we expect a similar level as in December 23, to have in December, All right.

Speaker Change #110: Yes, we expect a similar level the mix will change.

Rodolfo Savitzky: Moving on to the business life.

Rodolfo Savitzky: In marketplace, revenue growth in H1 was 6.1%.

Speaker Change #110: Of course cannot see inside.

Rodolfo Savitzky: As in Q1, the Microsoft business maintained revenue growth in the mid-single digit, mientras que el crecimiento en otras ISVs se aceleró a dos dígitos en junio. Benefitting from an increased focus on prioritized partners.

Rodolfo Savitzky: Thanks to a strong decline in delivery cost, contribution margin in marketplace was 88.4%, reflecting an increase of 2 percentage points versus last year.

Speaker Change #112: The components of the mix.

Rodolfo Savitzky: The adjusted EBITDA budget stood at 50.2% up one percentage point compared to the prior, In services, growth was primarily driven by cloud services, IT portfolio management, and SAP.

Rodolfo Savitzky: We achieved a notable increase in contribution margin reaching 43.7% for each one, which represents a 4.8% point improvement compared to the prior year.

Rodolfo Savitzky: SJ&A increased at a lower rate than contribution margin, resulting in an adjusted EBITDA margin of 7.3%, 4.2 percentage points up from last year.

Speaker Change #113: Of course part of the $14 million, you'll see and each one is.

Brian Duffy: Finally, we implemented an AI-based renewal model for the marketplace business line and will roll it out across managed services in H2. We are also driving pricing excellence with successful pilots in DOC, the UK, Nordics and Benelops.

Speaker Change #114: Benefits associated with the the adviser supporting us on the program that will take.

Brian Duffy: Supporting our digital first, Bogota market approach, our marketplace platform facilitates bringing customers and vendors together to disrupt our industry.

Speaker Change #114: Down during the second half and of course, you will see the Fuller.

Speaker Change #114: Reorganization impacting in the second half, but we expect a similar impact and that should be 40 off the market Paul.

Rodolfo Savitzky: But we expect a similar impact, and that should be 40 of the. And I would just also add that our focus as an organization when it comes to the Golden Market transformation is growing our market share and growing our wallet share. That means having the right coverage model both in the sales and pre-sales perspective. We talk a lot about the digital sales of the SME segment, and that is an investment that we're making, where we certainly expect to see it pay off. But already we are seeing a payoff in terms of the investments that we're making at the top of the pyramid in terms of our enterprise and our corporate customers.

Brian Duffy: Our existing relationships and decades of tribal knowledge are significant advantages versus the many generic marketplaces that are right there today.

Brian Duffy: We're very fortunate that one we have a diversified portfolio, secondly the relationship that we have with customers and our understanding of their business. That's where we now get to hold a hand of a customer and help them explore how they can use co-pilot to truly change the business and receive a return on that investment and much progress and they will have a new suit in the past.

Maybe it's been.

Speaker Change #114: I would just also add that our focus as an organization.

Speaker Change #115: So the go to market transformation that growing our market share and growing our wallet share that means having having the right corporate model both from a sales and pre sales perspective, we talked a lot about the digital sale.

Rodolfo Savitzky: And it is worthwhile mentioning that services achieved an 11% adjusted EBITDA margin in, I am pleased to report that we have now completed our operational excellence program launched in early 2020. Final annualized cost savings amounted to $76 million compared to the rate $70 million target of which $7 million have been reinvested in growth indicators.

Rodolfo Savitzky: This program has laid the foundation for a stronger, more resilient organization and surely will continue to benefit from its impact in the future.

Rodolfo Savitzky: Well, we will no longer report our savings related to the program.

Rodolfo Savitzky: And then I'll hand the second part of the question to Rudolph. That's a program on Microsoft. If we step back and look at the first we start with the billions for the half year. Business will buy 8%, which is a healthy level and as we have communicated before our focus is to accelerate what is called the subscription base, the Ximple, the CSP. And here we saw a very healthy growth in billions significantly about the average.

Speaker Change #114: The SME segment.

Rodolfo Savitzky: We will, of course, continue to control costs in dry food.

Rodolfo Savitzky: Among the initiatives ongoing, we will increasingly utilize AI-driven recommendations to drive Salesforce effectiveness.

Speaker Change #114: That is an investment that we're making where we certainly expect to see it pay off but already we are seeing it pay off in terms of the investments that we're making.

Rodolfo Savitzky: We will continue to internalize and write short delivered resources.

Rodolfo Savitzky: And lastly, in our finance shared service centers, we will further standardize and automate processes with increased focus on the order to cash process.

Rodolfo Savitzky: As Brian outlined earlier, we have completed the implementation of the new go-to-market model across our key markets, representing the majority of our revenue. The remainder will be done in H2. With the new coverage model, we expect productivity to increase across the sales force through optimization of customer-facing and support resources.

Brian Duffy: The platform continues to gain traction in Q2 with a number of private subscription growing to over 35,000 and LTM growth sales increasing to 825 million Swiss francs.

Speaker Change #116: Top of the pyramid in terms of our enterprise and our corporate that's right and this is the second quarter in a row, where we've called out the large wages there'll be a pad in North America and I expect based on the progression of our pipeline in Q3 that we will see the thing a similar result in Europe in a block and maybe just two.

Rodolfo Savitzky: And this is the second quarter in a row where we are called at the large wins that we have had in North America. And I expect based on the progression of our pipeline in Q3 that we will see a similar result in Europe or what.

Brian Duffy: This translates to around 100 million of revenue, or 10% of group revenue, first of all one.

Rodolfo Savitzky: And maybe just do a final comment on that topic because I think it's an important one. When we look at the evolution of our sales expenses as such, we expect them to be either in line or slightly below the current level. Also, this program as such does not translate into higher cost, but rather in net productivity. But even more importantly, as Brian also mentioned, the biggest value is in the growth acceleration and real improvement in productivity as measured by sales per empty, and here also as indicating one of the graphs. We expect already in age two as significant acceleration of productivity as measured by sales per empty.

Brian Duffy: We continue to add new features to enhance the customer experience. For example, split billing for multiple customer entities and scale at the platform by adding new vendors.

Rodolfo Savitzky: Not all of that translated into revenue growth, when we look at the x-imposed, it was ahead of buildings. Part of that was a play to reduce a little bit the front end margin to accelerate the volume growth. So, all you know, we see the development in Microsoft as quite healthy, consistent resource quarter and quarter as we communicate in the mid-single digit.

Speaker Change #116: Final comment on that topic, because I think it's an important one when we look at.

Speaker Change #116: The evolution of our sales expenses as such we expect them to be either in line or slightly below the current levels.

Brian Duffy: We are also focusing on automation of all backend processes and aim to reach an end-to-end automated chain by the end of 2025.

Brian: This is the this program as such does not translate into higher cost, but rather in the net productivity, but even more importantly, as Brian as Brian also mentioned the biggest value we see in the growth like simulation engine improvements in productivity as measured.

Brian Duffy: Over the medium term, we expect this platform to become a key driver of both top line growth and margin for software one, co-pilot 365 had now been generally available for around two quarters.

Brian Duffy: Our focus remains on being the number one partner for Microsoft while supporting clients with exploring use cases, addressing data security and compliance concerns and creating effective adoption programs.

Unknown Executive: And thank you very much.

Speaker Change #117: By sales per FTE in here Oxfords indeed.

Brian Duffy: By June 2024, we have reached around 600,000 co-pilot abusers, nearly double the number of users by the end of Q1.

Christian Bader: The next question comes from Christian Bader from ZKB, please go ahead. Yes, good morning gentlemen. I have three questions please.

Speaker Change #118: Indicating one would be the graphs, we expect total units to a significant acceleration of productivity as measured by sales per FTE.

Brian Duffy: We have also delivered an additional 240 services engagement in Q2.

Unknown Executive: Firstly, what is your amount of interest income and interest expense? Okay, so that's a very specific question. Maybe I have two. I think part of that you can see in the casual statement right, because of course this is something we report. Let me follow up separately with you Christian. Okay, all right.

Brian Duffy: Now let's turn to some examples.

Brian Duffy: Aaron, a Luxembourg law, tax and business services firm is a great example of how we've been partnering with clients to explore use cases for co-pilot 365 to transform their way to working. As part of our holistic co-pilot advisory service, Softwareone together brought together the firm's most relevant stakeholders to showcase co-pilot's capabilities. We demonstrated its integration with a 365 suite, highlighting its potential to streamline content creation, data analysis, legal research and translation.

Speaker Change #118: S P.

Rodolfo Savitzky: So it's a program with a very high rate of return. Understood. That's very clear.

Speaker Change #118: So it's a program with a very high rate of return.

Brian Duffy: The Softwareone team also proposed new innovative uses such as a chat box to support the legal teams, and that based on these results, Aaron's intent to expand the use of co-pilot throughout its entire organization.

Speaker Change #120: Understood that's very clear.

Brian Duffy: And sorry, I may not have caught the beginning of the Q&A session, but just on the progression of the go to private transaction. So, I mean, since the new board has come in, you've had sort of five, five, four to five months to take a look at the sort of advances that you've received. I mean, what is it that's sort of taking a longer time than expected in order to sort of reach, reach an agreement? And I know you've sort of referenced the deteriorating environment, and I think potentially that reduces the probability of deal completing.

And sorry, I may not have caught at the beginning.

Brian Duffy: In addition to co-pilot, we continue to focus on our expand services in high growth segments such as data and AI, supporting mid-marker clients with getting their data in order.

Speaker Change #121: The Q&A session, but just on.

Brian Duffy: An example of this is Amrits, a restaurant operator in Europe managing the diverse portfolio of well-known franchises such as KFC, Pizza Hut and Starbucks. They were looking to enhance their data infrastructure to better analyze and utilize data for improving sales and marketing operations.

Speaker Change #122: Just on the progression of the go to private transaction.

Speaker Change #123: Since the new board has come in.

Sort of in a.

Speaker Change #123: Five four to five months to.

Brian Duffy: As a solution, we helped them build an enterprise data warehouse on Microsoft Azure. Today, Amrits has a scalable solution which accommodates the growing data needs and provides them with deeper insights into customer preferences and behaviors, and enabling them to deliver a more personalized and effective marketing strategy.

Speaker Change #124: To take a look at the sort of advances that you've received I mean, what is it that sort of taking a longer time than than expected in order to sort of reach reach an agreement I know you sort of referenced the deteriorating environment and you know I think.

Rodolfo Savitzky: Now, with that, I will hand over to Rudolfo who will take us through our financial performance in H1.

Rodolfo Savitzky: Thank you, Brian.

Rodolfo Savitzky: Okay, then secondly, what do you expect in terms of networking capital development for the second half of the year? Yeah, so look, the networking capital is very secretive. When you look at the graph, it's absolutely clear that the level in the half year, like June, is very different from the level we see in December. And here you do so actually we had a negative connection capital of December. So we expect a similar level as in December 23 to have in December 24. All right, okay.

Rodolfo Savitzky: I'd like to extend a warm welcome from my side as well.

Speaker Change #125: Potentially that reduces the probability of a deal completing but I mean, just wanted to get your sense on and you know why it's it's taking longer than expected.

Rodolfo Savitzky: Let me begin by discussing our financial performance at the group level.

Brian Duffy: But I mean, I just wanted to get your sense on, you know, why it's taking longer than expected.

Brian Duffy: Well, firstly, I've been named a board, joined us in the new board, joined us in a qualifying program. The transaction committee was established in many, which we communicated to with our Q1 or those. And the boards have then received interest made through the end of June. And now in the summer months, we have disclosed received indicative offers, and the board is in discussions with each of those parties that have submitted offers. And so I don't think necessarily that it has taken so long when we really looked at the timeline here.

Well, firstly as they've been data onboard joined us and the New Board joined US in April timeframe as the transaction Committee was established in many.

Speaker Change #125: Which we communicated to you with our Q1 results.

Speaker Change #125: The board have been received interest made through the end of June and now in the summer months. We have disclosed received indicative offers and the board is in discussions with each of those parties that have submitted awkward.

Rodolfo Savitzky: And finally, what is your amount of factoring? It remains constant at the round. It's below 200. Okay, all right. Thank you.

Speaker Change #126: I don't think necessarily that it has taken.

Speaker Change #126: When we really looked at the timeline here and but as we also said when there is an update to provide specifically on that at the board certainly we'll be providing that in due course.

Unknown Executive: But, as we also said, when there is an update to provide specifically on this, the board certainly will be providing that in due course. Understood. Thank you very much.

Unknown Executive: Once again, to ask a question, please press star followed by one.

Understood understood Thanks very much.

Vinay Bardee: The next question comes from Vinay Bardee from Cantor Fitzgerald. Please go ahead. Morning, Jens.

Speaker Change #126: Okay.

Speaker Change #126: Yeah.

Florian Treisch: Yes, well, thank you very much for taking my question.

Speaker Change #126: Gentlemen, there are no further questions Nick over to you for any closing remarks.

Florian Treisch: There will be two on my end.

Florian Treisch: The first one, I simply assume that you will not give us a deeper insight into these potential, going private transactions, but maybe just one on this wording around a challenging environment.

Florian Treisch: Do you want to flex simply if we don't or should not expect any near-term solutions, to that and that these discussions will simply take several months to go, or is it just reflecting which kind of environment we are in at the moment?

Florian Treisch: The second part is around your confirmed EVTA guidance.

Unknown Executive: Claugingly Martin. Great, well thank you everybody for joining. We appreciate you taking the time and have a great day. Thank you very much.

Florian Treisch: So, if you look at Q2 margins, the first question would be, can you elaborate a bit on the one-off, item in there, the five-something million, is that recurring also going into H2?

Rodolfo Savitzky: Just one question on your go-to-market restructuring expenses for the full year. I think I see 14 million for the half year. Can you give some guidance for the remainder of the year, please? Yeah, we expect a similar level. The mix will change. You of course cannot see inside the components of the mix. Of course, part of the 14 million you see in age one is expenses associated with the advice of supporting us on the program that will be faced down during the second half.

Rodolfo Savitzky: More Effective Client Codes, Improved Regeneration and AI-Driven Cross-Section.

Martin Jungfleisch: So, thank you.

Christian Bader: Okay.

Florian Treisch: And with that, you simply imply a nice margin uptick in H2, so can you give us some more, details on the bridge from H1 margin to H2 margin?

Nick: Well. Thank you everybody for joining we appreciate you taking the time and have a great day.

Brian Duffy: We're very happy with the numbers in terms of the 600,000 users, and that doubles, as you know, since the end of Q1.

Christian Bader: And finally, what is your amount of factoring?

Florian Treisch: Thank you very much.

Brian Duffy: We now have around 240 additional services engagements, and we're very happy with those services engagements where we are going deeper and deeper with our customers to explore how they can get the full benefits from Copilot to help them bend the curve of productivity.

Christian Bader: The factory remains constant at around, it's below 200.

Brian Duffy: Okay, Brian, I'll take the first part and then I'll hand it over to Rodolfo.

Rodolfo Savitzky: You know our business has certain seasonality and certain patterns.

Brian Duffy: It's still very early days in that we are only reporting six months of trading because, as you know, Copilot became available on January 15th.

Rodolfo Savitzky: Alright, thank you!

Rodolfo Savitzky: So, as you know, in May, we established a transaction committee.

Rodolfo Savitzky: It's important to keep an eye on the improvement year-on-year.

Operator: to ask a question, with stars followed by one.

Brian Duffy: That transaction committee is made up of the independent board members, and the board is, committed to concluding everything in a timely manner.

Rodolfo Savitzky: And therefore, we are confident to deliver the guidance of 24.5% to 25.5%.

Operator: The next question, and Dina Ibardi from Cantor Fitzgerald, please go ahead.

Brian Duffy: When and if there is a further update to be provided, the board will be doing so, and, that is the extent that we can comment specifically in terms of a potential transaction.

Rodolfo Savitzky: Then on the one-offs, this is associated with primarily a couple of legal cases in emerging, markets, South Africa and China, and we definitely do not expect that this will be recurring in the second half.

Brian Duffy: And then I'll hand it over to Rodolfo.

Rodolfo Savitzky: Great.

Rodolfo Savitzky: Yeah, so, Florian, thanks for the question.

Rodolfo Savitzky: Thank you very much.

Rodolfo Savitzky: So, a couple of questions here.

Operator: As a reminder, if you wish to register for a question, please press star followed by, one.

Rodolfo Savitzky: One is around the EVTA guidance.

Nick: [music].

Operator: The first question comes from Martin Jungfleisch from BNP Paribas.

Rodolfo Savitzky: As I mentioned in my remarks, we expect an acceleration of revenue growth in the second half. This goes hand-in-hand with improved sales post-productivity behind the new go-to-market model.

Martin Jungfleisch: Please go ahead.

Rodolfo Savitzky: And the other important reference point is, if you look at our H1 results, our margin, at 23% is 100 basis points ahead of prior years.

Martin Jungfleisch: Hi.

Rodolfo Savitzky: So, here it's very important.

Martin Jungfleisch: Good morning.

Martin Jungfleisch: Thanks for taking my question.

Martin Jungfleisch: I have a couple.

Martin Jungfleisch: Maybe we can go one by one.

Martin Jungfleisch: The first one is really on the guidance when you deliver 7% quantum currency in H1, and, that requires obviously a bit of a step up in the second half.

Martin Jungfleisch: You mentioned that it's primarily driven by go-to-market, but would this also underpin, a macro recovery in Europe as well?

Martin Jungfleisch: That's the first one.

Brian Duffy: Yes.

Brian Duffy: I can take the first question, Martin, and thank you for it.

Brian Duffy: So we didn't see momentum in many of our growth markets in H1. We specifically called out and were very specific in what was driving the revised guidance, change. And that is two things. Firstly, a slowdown that we saw specifically in DOC in Q2 in terms of customers buying, decisions. And then in addition, in our application services business in Colombia only, and that was tied, specifically to a government change and the end of a contract that we had, and then the non-renewal specifically of that contract on the heels of a government change.

Brian Duffy: Now having said that, we are very happy with the pipeline progression that we have seen, at the end of Q2 and into Q3, specifically in DOC.

Brian Duffy: And with the new leadership that we have in place in January, we're very confident in, terms of a strong performance in DOC, specifically in Q3.

Brian Duffy: And then the second question is on services.

Martin Jungfleisch: I mean, it has decelerated quite a bit to mid-finger digits now.

Martin Jungfleisch: Is it also more macro or is it also market share driven?

Martin Jungfleisch: Because when you look at the other resellers that have reported in the last couple of quarters, they have actually reported an acceleration in their services.

Brian Duffy: So would you agree that it's also a bit of market share issues there?

Brian Duffy: No.

Brian Duffy: Again, specifically that is tied to one line of business, our application services business, and tied to one geography, Colombia, and as I said, based on the government change, and certainly not part of a larger macroeconomic environment that has led to a slight tweak in terms of our guidance.

Brian Duffy: Okay.

Martin Jungfleisch: Thank you.

Rodolfo Savitzky: And of course, you will see the full reorganization impacting in the second half. But we expect a similar impact and that should be 40 of the and I would just also add that our focus as an organization when it comes to the Golden Market transformation is growing our market share and growing our wallet share. That means having the right coverage model both in the sales and pre-sales perspective, we talk a lot about the digital sales of the SME segment and that is an investment that we're making where we certainly expect to see it pay off.

Martin Jungfleisch: And then just the last one is on co-pilots.

Martin Jungfleisch: I mean, your reported users almost doubling, so that's pretty great.

Martin Jungfleisch: But then can you talk a bit about the market share that you have in co-pilot seats?

Brian Duffy: Is that, would you say that it's greater than your current market share in Microsoft, reselling or is that more or less in line?

Brian Duffy: So, thank you.

Brian Duffy: We're very happy with the numbers in terms of the 600,000 users.

Rodolfo Savitzky: Revenue growth in H1 was solely that 7% in line with our expectations with broad-based growth across the regions and business life.

Brian Duffy: And that doubles, as you know, since the end of Q1.

Brian Duffy: We now have around 240 additional services engagements, and we're very happy with those, services engagements where we are going deeper and deeper with our customers to explore how they can get the full benefit from co-pilots to help them bend the curve of productivity.

Brian Duffy: It's still very early days in that we are only reporting six months of trading because, as you know, co-pilots became available on January 15th.

Brian Duffy: We have been very clear that we aim to be partner number one for Microsoft.

Brian Duffy: We are the only partner that I'm aware of that discloses our co-pilot numbers.

Brian Duffy: And I will say that we are well on track to being partner number one for co-pilots.

Brian Duffy: We are very happy here and they are very happy in Seattle with us.

Brian Duffy: So that 300,000 user per quarter, would you say that's a decent run rate that you could expect also in the Q3 or Q4? I think what we've seen is customers have started, some have started small, and now in terms of the example that we gave you, we're now seeing the customers deciding to do a mass rollout across the entire organization for CoPilot, and we expect to see the momentum with CoPilot continuing and accelerating into the second half of the year.

Martin Jungfleisch: Cool, that's helpful, thank you very much.

Operator: For any further questions, please press star followed by one, star followed by one.

Operator: We have a follow-up question from Florian Treisch from Kepler, please go ahead.

Florian Treisch: Great, thank you.

Florian Treisch: Then some follow-up, or two follow-ups on my end.

Florian Treisch: So the one on CoPilot as well, so you're obviously happy with the adoption rate now, clearly going up towards a decent level, I would say for the, as you said, only six months on the market.

Florian Treisch: Can you give us also, let's call it first indication on RE, indications or kind of performance to really get an impression that, or to get a feeling if your 15% adoption rate you assume and you branded as conservative in the past, is it really still a very conservative date from you, number from you and RE, is it really a game-changing solution for the client for a respective price tag?

Florian Treisch: And the second one would be in general around Microsoft, you mentioned around 5% growth dynamic.

Florian Treisch: Can you provide some feedback where is this coming from?

Rodolfo Savitzky: Our focus on operational excellence continued to give positive results.

Florian Treisch: Is this driven by lower underlying demand, by lowered commission levels for key products, or really to understand if that is a headwind for the coming quarters as well?

Florian Treisch: Thank you.

Brian Duffy: Thanks, Florian.

Brian Duffy: So, as you know, and as I said, we're very happy with the progress that we're making.

Brian Duffy: We do anticipate, as I said to Martin, that we will see a continued acceleration for demand from our customers around co-pilots.

Brian Duffy: What I can say is, given that it's still early days, if we continue to see that acceleration through the second half of the year, it is fair to assume that we will be issuing a new target for ourselves in terms of the conversion of our users.

Brian Duffy: As you know, we have 12.5 million users that we're supporting from a Microsoft perspective, and we issued a target to convert 15% of those.

Brian Duffy: If we continue to operate as we have in the first six months of this year, it's fair to assume that we will see a change in targets that we will issue to our teams internally and then externally as well.

Brian Duffy: And then I would also comment that co-pilot can be viewed two ways.

Brian Duffy: Firstly, there's the out-of-the-box co-pilot.

Brian Duffy: Then secondly, there is specific use cases that customers can explore around co-pilots that are customized for their business.

Brian Duffy: We're very fortunate that, one, we have a diversified portfolio.

Brian Duffy: Secondly, the relationship that we have with customers and our understanding of their business.

Brian Duffy: That's where we now get to hold the hand of a customer and help them explore how they can use co-pilot to truly change their business.

Brian Duffy: And receive a return on that investment, much quicker than they would have been used to in the past.

Rodolfo Savitzky: We reduced the delivery costs of setting the effect of portfolio mix changes. These resulted in a three percentage points increase in contribution margin, both in H1 and in Q2.

Rodolfo Savitzky: But already we are seeing a payoff in terms of the investments that we're making at the top of the pyramid in terms of our enterprise and our corporate customers. And this is the second quarter in a row where we are called at the large wins that we have had in North America. And I expect based on the progression of our pipeline in Q3 that we will see seeing a similar result in Europe or what.

Rodolfo Savitzky: And then I'll hand the second part of the question to Rudolfo.

Rodolfo Savitzky: Yeah, so Florian, on Microsoft, if we step back and look at the – first, we start with the billings for the half year.

Rodolfo Savitzky: Billings grew by 8%, which is a healthy level.

Rodolfo Savitzky: And as we have communicated before, our focus is to accelerate what is called the subscription base, the Ex-Impos, the CSP.

Rodolfo Savitzky: And here we saw a very healthy growth in billings, significantly above the average.

Rodolfo Savitzky: Not all of that translated into revenue growth.

Rodolfo Savitzky: When we look at the Ex-Impulse, it was ahead of Billings. Part of that was a play to reduce a little bit the front-end margin to accelerate the volume growth.

Rodolfo Savitzky: So all in all, we see the development in Microsoft as quite healthy.

Rodolfo Savitzky: Consistent results quarter on quarter as we communicate in the mid-single digit.

Rodolfo Savitzky: And yes, this is in line with our plan.

Rodolfo Savitzky: Great.

Rodolfo Savitzky: Thank you very much.

Operator: The next question comes from Christian Bader from ZKB.

Christian Bader: Please go ahead.

Christian Bader: Yes, good morning, gentlemen.

Christian Bader: I have three questions, please.

Christian Bader: Firstly, what is your amount of interest income and interest expense?

Rodolfo Savitzky: Okay, so that's a very specific question.

Rodolfo Savitzky: Maybe I have to – I think part of that you can see in the cash flow statement, right?

Rodolfo Savitzky: Because, of course, this is something we report.

Rodolfo Savitzky: Let me follow up separately with you, Christian.

Christian Bader: Okay, all right.

Rodolfo Savitzky: And maybe just do a final comment on that topic because I think it's an important one. When we look at the evolution of our sales expenses as such, we expect them to be either in line or slightly below the current level. Also, this program as such does not translate into higher cost but rather in net productivity. But even more importantly, as Brian also mentioned, the biggest value is in the growth acceleration and real improvement in productivity as measured by sales per empty and here also as indicating one of the graphs. We expect already in age two as significant acceleration of productivity as measured by sales per empty. So it's a program with a very high rate of return. Understood.

Christian Bader: Okay, then secondly, what do you expect in terms of network and capital development for the second half of the year?

Rodolfo Savitzky: Yes, so look, the networking capital is very cyclical.

Rodolfo Savitzky: When you look at the graph, it's absolutely clear that the level in the half year, like June, is very different from the level we see in December.

Rodolfo Savitzky: And here you saw actually we had a negative networking capital last December.

Rodolfo Savitzky: So we expect a similar level as in December 23 to have in December 24.

Christian Bader: All right, okay.

Christian Bader: And finally, what is your amount of factoring?

Unknown Executive: That's very clear.

Rodolfo Savitzky: Factoring remains constant at around – it's below 200 billion.

Rodolfo Savitzky: Okay, all right.

Christian Bader: Thank you.

Operator: Once again, to ask a question, please press star followed by one.

Vinay Bhardvi: The next question comes from Vinay Bhardvi from Cantor Fitzgerald.

Vinay Bhardvi: Please go ahead.

Vinay Bhardvi: Morning, gents.

Vinay Bhardvi: Just one question on your go-to-market restructuring expenses for the full year.

Vinay Bhardvi: I think I see $14 million for the half year.

Vinay Bhardvi: Can you give some guidance for the remainder of the year, please?

Rodolfo Savitzky: H&A expenses increased by 13% in H1 with a productivity improvement largely offset by growth in H1.

Rodolfo Savitzky: Yeah, we expect a similar level.

Rodolfo Savitzky: The mix will change.

Rodolfo Savitzky: You, of course, cannot see inside the components of the mix.

Rodolfo Savitzky: Of course, part of the $14 million you see in H1 is expenses associated with the advisor supporting us on the program.

Rodolfo Savitzky: That will face down during the second half.

Rodolfo Savitzky: And, of course, you will see the full reorganization impacting in the second half.

Rodolfo Savitzky: But we expect a similar impact, and that should be for the go-to-market program.

Brian Duffy: Maybe Vinay can – I would just also add that, you know, our focus as an organization when it comes to the go-to-market transformation is growing our market share and growing our wallet share.

Rodolfo Savitzky: Reinvestment.

Brian Duffy: That means having the right coverage model both in the sales and pre-sales perspective.

Brian Duffy: We talk a lot about the digital sales and the SME segment and that is an investment that we're making where we certainly expect to see a payoff but already we are seeing a payoff in terms of the investments that we're making at the top of the pyramid in terms of our enterprise and our corporate customers and this is the second quarter in a row where we have called out the large wins that we have had in North America and I expect based on the progression of our pipeline in Q3 that we will be seeing a similar result in Europe as well.

Rodolfo Savitzky: And maybe just a final comment on that topic because I think it's an important one.

Rodolfo Savitzky: When we look at the evolution of our sales expenses as such we expect them to be either in line or slightly below the current level so this program as such does not translate into higher cost but rather in net productivity but even more importantly as Brian also mentioned the biggest value is in the growth acceleration and re-improvement in productivity as measured by sales per FTE and here also as indicated in one of the graphs we expect already in H2 a, significant acceleration of productivity as measured by sales per FTE. So it's a program with a very high rate of return.

Vinay Bhardvi: I understood that that's very clear and sorry I may not have caught the beginning of the Q&A session but just on the progression of the go-to-private transaction I mean since the new board has come in you've had sort of you know four to five months to take a look at the sort of advances that you've received.

Brian Duffy: I mean what is it that's sort of taking a longer time than expected in order to sort of reach an agreement?

Brian Duffy: I know you sort of referenced the deteriorating environment and you know I think potentially that reduces the probability of deal completing but I mean just wanted to get your sense on you know why it's taking longer than expected.

Brian Duffy: Well firstly as the board joined us in and the new board joined us in April timeframe the transaction committee was established in May which we communicated to with our Q1 results and the board has then received interest May through the end of June and now in the summer months we have as disclosed received indicative offers and the board is in discussion with each of those parties that have submitted offers and so I don't think necessarily that it has taken so long when we really look at the timeline here but as we also said when there is an update to provide specifically on this as the board certainly will be providing that in due course.

Vinay Bhardvi: Understood, understood.

Vinay Bhardvi: Thanks very much.

Operator: Gentlemen so far there are no further questions.

Brian Duffy: Back over to you for any...

Operator: closing remarks great well thank you everybody for joining we appreciate you taking the time and have a great day

Rodolfo Savitzky: Our adjusted EBITDA margins to that 23% for the first half, reflecting a 1% point increase versus last year.

Rodolfo Savitzky: In terms of foreign exchange, the sweet front continued to strengthen Q1, but remained relatively stable compared to key currencies in Q2.

Brian Duffy: And sorry, I may not have caught the beginning of the Q&A session but just on the progression of the go to private transaction. So I mean, since the new board has come in, you've had sort of five, five, four to five months to take a look at the sort of advances that you've received. I mean, what is it that's sort of taking a longer time than expected in order to sort of reach, reach an agreement and I know you've sort of referenced the deteriorating environment and I think potentially that reduces the probability of deal completing.

Rodolfo Savitzky: Overall, these resulted in a negative impact on revenue of 2.4% in H1. However, thanks to our natural hedge with similar foreign exposures in expenses, the impact on the adjusted EBITDA margin was once again minute.

Rodolfo Savitzky: This bridge illustrates the year-on-year changes in adjusted EBITDA, highlighting how we achieved margin expansion through revenue growth and enhanced productivity while investing in the business.

Rodolfo Savitzky: Beginning with delivery costs, we continue to improve productivity by cutting down on higher cost external resources and shifting more internal resources from local to remote delivery teams.

Brian Duffy: But I mean, just wanted to get your sense on, you know, why it's taking longer than expected. Well, firstly, I've been named a board, joined us in the new board, joined us in a qualifying program, the transaction committee was established in many, which we communicated to with our Q1 or those. And the boards have then received interest, made through the end of June. And now in the summer months, we have a disclosed received indicative offers and the board is in discussions with each of those parties that have submitted offers.

Rodolfo Savitzky: The increase in sales and marketing was due to ramp-up investments across key countries as part of our revised go-to market model.

Rodolfo Savitzky: As been expenses grew, due to investments behind vision 2026, organic personal cost increases, and certain one-offs. These were partially offset by productivity gains as a result of operational takes on.

Rodolfo Savitzky: Moving on to the business life.

Rodolfo Savitzky: In marketplace, revenue growth in H1 was 6.1%.

Brian Duffy: And so I don't think necessarily that it has taken so long when we really looked at the timeline here. But as we also said, when there is an update to provide specifically on this, the board certainly will be providing that in due course. Understood.

Rodolfo Savitzky: As in Q1, the Microsoft business maintained revenue growth in the mid-single digits, while growth in other ISVs accelerated to double digits in Q2, benefiting from an increased focus on prioritized partners.

Unknown Executive: Thank you very much.

Rodolfo Savitzky: Thanks to a strong decline in delivery costs, contribution margin in marketplace was 88.4%, reflecting an increase of 2%age points versus last year.

Rodolfo Savitzky: The adjusted imitavages to that 50.2% up 1%age point compared to the prior year. In services, growth was primarily driven by cloud services, IT portfolio management and SAP services.

unknown: UNTERTITELUNG

Unknown Executive: Claugingly Martin.

Rodolfo Savitzky: We achieved a notable increase in contribution margin, reaching 43.7% for H1, which represents a 4.8%age point improvement compared to the prior year.

Unknown Executive: Great, well thank you everybody for joining, we appreciate you taking the time and have a great day. Thank you very much. [inaudible][inaudible]

Nick: [music].

Rodolfo Savitzky: A GNA increased at the lower rate and contribution margin resulting in an adjusted imitavaging of 7.3% 4.2%age points up from last year, and it is worthwhile mentioning that services achieved an 11% adjusted imitavaging in Q2.

Nick: Yeah.

Nick: [music].

Unknown Executive: Thank you so much for listening to this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed this video and I hope you enjoyed

Rodolfo Savitzky: I am pleased to report that we have now completed our operational elections program launched in early 2013.

Rodolfo Savitzky: Final annualized cost savings amounted to 76 million compared to the rate 70 million target of which 7 million have been reinvested in growth illegitimate.

Rodolfo Savitzky: This program has laid the foundation for stronger, more resilient, organization, and surely will continue to benefit from its impact in the future.

Rodolfo Savitzky: Rit.

Rodolfo Savitzky: Well, we will no longer report our savings related to the program.

Rodolfo Savitzky: We will of course continue to control costs and drive productivity improvements.

Rodolfo Savitzky: Among the initiatives ongoing, we will increasingly utilize AI driven recommendations to drive sales force effectiveness.

Rodolfo Savitzky: We will continue to internalize and write short delivery resources.

Rodolfo Savitzky: And lastly, in our finance share service centers, we will further standardize and automate processes.

Rodolfo Savitzky: We will increase focus on the order to cash costs.

Rodolfo Savitzky: As Brian outlined earlier, we have completed the implementation of the new go-to-market model across our key markets representing the majority of our web.

Rodolfo Savitzky: The remainder will be done in H2.

Rodolfo Savitzky: With the new coverage model, we expect productivity to increase across the sales force through optimization of customer facing and support resources.

Rodolfo Savitzky: More effective client coverage improve regeneration and AI driven cross-head.

Rodolfo Savitzky: We expect to see these benefits come through of already in H2, with low-consafe and marketing costs approaching 21% by 26.

Rodolfo Savitzky: On a 12-month basis to eliminate seasonality, our cash conversion to the capex was 169 million or 66% of adjusted demand.

Rodolfo Savitzky: The capex investment into our marketplace program, in terms of our net cash development, we had further outflows, including M&A and our now payments, significant return to shareholders in the form of dividends and the share buyback program of combined over 90 million as well as restructuring expenses. This led to a net debt position of 208.7 million at June 30, T.C.

Rodolfo Savitzky: At the end of the half-year networking capital was at 108.6 million a level similar to our viewing position last year.

Rodolfo Savitzky: Our day sales outstanding have risen due to current market conditions and the growth of consumption-based offerings which involved accruing for the fixed commitment and invoicing later compared to enterprise agreements where it involves is issued upon delivery of the license. To very much the extent of customer payment cycle, we have managed to optimize our ISV payment terms.

Rodolfo Savitzky: Working capital management remains a top priority. Some of the operational excellence measures we're putting in place will allow us to expedite collection by increasing the percentage of accurate invoices as well as providing greater transparency on overdue invoices for our collectors.

Rodolfo Savitzky: As Ryan already mentioned, as a result of continuous macroeconomic uncertainty impacting clients purchasing behavior and development in our application services business in Colombia, we now expect revenue growth for the food year of 7 to 9% in constant currency and we confirm our just a dividend margin target of 24.5 to 25.5%.

Rodolfo Savitzky: We anticipate that positive impact on growth in the second half of the year as the new sales organization becomes fully operational.

Rodolfo Savitzky: Also, as mentioned, we expect to maintain a productivity improvement in delivering support functions which in addition to operating leverage will need to continue the EBITA margin improvement compared to prior year in language guidance.

Rodolfo Savitzky: Our midterm guidance remains unchanged.

Brian Duffy: I'll now hand back to Brian for his closing remarks.

Brian Duffy: Thanks, Rodolfo.

Brian Duffy: To conclude, we have delivered a solid set of results in the current environment and the implementation of vision of 2020-26 is well on track.

Brian Duffy: We are not yet finished, but our progress in age range adds to our confidence in delivering on our 2020-26 targets which is maintained, revenue growth and a margin of approaching 28%.

Unknown Executive: Thank you, and now let's move on to the next Q&A.

Unknown Executive: Questions on the phone are requested using only handsets and eventually turn off the volume of the webcast.

Unknown Executive: Anyone who has a question may press star and one at this time.

Florian Treisch: The first question comes from Florian Trash from Kepler.

Florian Treisch: Please go ahead.

Florian Treisch: The second part is around your confirmed EVDA guides.

Florian Treisch: If you look at Q2 margins, the first question would be can you elaborate a bit on the one-off item in there?

Florian Treisch: The five-something million is that recurring also going into H2 and with that you simply imply a nice margin up to Q2.

Florian Treisch: Can you give us some more details on the bridge from H1 margin to H2 margin?

Florian Treisch: Thank you very much.

Brian Duffy: Okay, I'll take the first part and then I'll hand it over to Rudolfo.

Brian Duffy: So as you know, in May, we established a transaction and committee.

Brian Duffy: That transaction committee is made up of the independent board members.

Brian Duffy: The board is committed to completing everything in a timely manner.

Brian Duffy: When and if there is a further update to be provided, as the board will be doing so.

Brian Duffy: And that is the extent that we can comment specifically in terms of potential transaction and then I'll hand it over to Rudolfo.

Rodolfo Savitzky: Yeah, so Florian, thanks for the question.

Rodolfo Savitzky: So a couple of questions here.

Rodolfo Savitzky: One is around the EVDA guidance.

Rodolfo Savitzky: As I mentioned in my remarks, we expect an acceleration of revenue growth in the second half. This goes hand-in-hand with improved sales force productivity.

Rodolfo Savitzky: You go to market model and the other important reference point is if you look at our H1 results are margin at 23% is 100 basis points ahead of priority.

Rodolfo Savitzky: So here it's very important to you know our business has certain seasonality and certain patterns.

Rodolfo Savitzky: It's important to keep an eye on the improvement year on year and therefore we are confident to deliver the guidance of 24 and a half to 25.

Rodolfo Savitzky: Then on the one hand, this is associated with primarily a couple of legal cases in emerging markets of Africa and China.

Rodolfo Savitzky: And we definitely do not expect that this will be apparent in the second half.

Rodolfo Savitzky: Thank you very much.

Unknown Executive: Yeah, good morning.

Unknown Executive: Thanks for taking my question.

Unknown Executive: I have a couple.

Unknown Executive: Maybe we can go one by one.

Unknown Executive: The first one is really on the guidance when you deliver the 7% content currency in H1 and that requires obviously a bit of a step up in the second half.

Unknown Executive: And you mentioned that it's primarily driven by gold to market, but what is also underpinned macro recovery in Europe as well.

Unknown Executive: That's the first one.

Unknown Executive: I can take the first question.

Unknown Executive: Thank you very.

Brian Duffy: So we didn't see momentum in many of our growth markets in H1. We specifically called out and were very specific in what was driving the revised guidance change, and that is two things.

Brian Duffy: Firstly, excellent and that we thought specifically in doc in Q2 in terms of customer buying decisions.

Brian Duffy: And then in addition, in our application services have business in Colombia only and that was tied specifically to a government change and the end of a contract that we had and then the non renewal specifically of that contract on the heels of public government change.

Brian Duffy: Now, having fed that, we are very happy with the pipeline progression that we have seen at the end of Q2 and the Q3 specifically in doc with the new leadership that we have in place in January were very confident in terms of a strong performance in doc specifically in Q3.

Unknown Executive: And then the second question is on services.

Unknown Executive: I mean, it has to celebrate quite a bit to mixing the digits now.

Unknown Executive: It's had also more macro is it also market share driven because when you look at the other resellers that has reported in the last couple of quarters, they actually put an acceleration that services what you agree that is also a bit of market share issues there.

Unknown Executive: No, again, specifically that is tied to one line of business, correct patient services business and type to one geography to lend again, and I bet that they found that the government change and certainly not part of a larger macro economic environment that has led to a slight tweak in terms of our rights.

Unknown Executive: Okay.

Unknown Executive: Thank you.

Unknown Executive: And then just the last one is on just some co co pilot.

Unknown Executive: I mean, you've reported to us on the doubling.

Unknown Executive: So that's pretty, pretty great.

Unknown Executive: But then can you talk a bit about the market share that you have in in co pilot seats?

Unknown Executive: Is that what you say that it's greater than your current market share in Microsoft reselling or is that more or less in line?

Brian Duffy: So as thank you and we're very happy with the numbers in terms of the 600 that is in users and that doubles as you know, since the end of q1 and we now have around 240 additional services engagements and we're very happy with those services engagements where we are going deeper and deeper with our customers to explore how they can get the full benefits from co pilot to help them bend the curve of productivity.

Brian Duffy: It's still very early days and that we are only reporting six months of trading because I do know co pilot became available on January 15th.

Brian Duffy: We have been very clear that we aim to be part number one for Microsoft.

Brian Duffy: We are the only partner that I'm aware of that discloses our co pilot numbers.

Brian Duffy: And I will say that we are well on track to being part number one for co pilot that we are very happy here and they are very happy and Seattle with us.

Brian Duffy: So that 300,000 user per quarter, which you say that's a decent run rate, so that you could expect us on the Q3 or Q4?

Brian Duffy: I think what we've seen is customers have started, some have started small and now I can just mention some of the examples that we gave you.

Brian Duffy: We're announcing the customer deciding to do a math role across the entire organization for co-pilot and we expect to see the momentum with co-pilot continuing and accelerating into the second half of the year.

Unknown Executive: So for thank you very much.

Unknown Executive: For any further question please press star followed by one, star followed by one.

Florian Treisch: We have a follow-up question from Florian Treisch from Kepler, please go ahead.

Florian Treisch: Great, thank you then some follow-up for my end.

Florian Treisch: So the one on co-pilot as well, so you're obviously happy with the adoption rate now clearly going up towards the decent level, I would say, for the as you said, only six months on the market, can you give us also, let's call it first indication on RE, indications or kind of performance to really get an impression that you get a feeling if you're 15% adoption rate you assume and you brand it as conservative in the past, is it really still a very conservative date from you, number from your end?

Florian Treisch: Is it really a game-changing solution for the client for a respective price tag?

Florian Treisch: And the second one would be in general around Microsoft, you mentioned around 5% gross dynamic, can you provide some feedback where is this coming from?

Florian Treisch: Is this driven by low underlying demand by lowered commission levels for key products or really to understand if that is a headwind for the coming quarters as well?

Florian Treisch: Thank you.

Brian Duffy: Thanks Florian, and so as you know and as I said we're very happy with the progress that we're making and we do anticipate as I said to Martin that we will see a continued acceleration and for demand from our customers around co-pilot, while I can say it's given that it's still early days, if we continue to see that acceleration through the second half of the year, it is fair to assume that we will be issuing a new target for ourselves and turns up the conversion of our users, that you know we have 12.5 million users that were supporting from a Microsoft perspective and we issued a target to convert 15% of those.

Brian Duffy: If we continue to operate as we have in the first six months of this year, it's fair to assume that we will see a change in a target that we will and issue to our team internally and then externally as well.

Brian Duffy: And then I would also comment that co-pilot can be viewed two ways.

Brian Duffy: Firstly, there's the out of the box co-pilot, then secondly there is and specific use cases that customers can explore around co-pilot that are customized for their business.

Brian Duffy: We're very fortunate that one we have a diversified portfolio, secondly the relationship that we have with customers and our understanding of their business.

Brian Duffy: That's where we now get to hold a hand of a customer and help them explore how they can use co-pilot to truly change the business and receive a return on that investment and much progress and they will have a new suit in the past.

Rodolfo Savitzky: And then I'll hand the second part of the question to Rudolph.

Rodolfo Savitzky: That's a program on Microsoft.

Rodolfo Savitzky: If we step back and look at the first we start with the billions for the half year.

Rodolfo Savitzky: Business will buy 8%, which is a healthy level and as we have communicated before our focus is to accelerate what is called the subscription base, the Ximple, the CSP.

Rodolfo Savitzky: And here we saw a very healthy growth in billions significantly about the average.

Rodolfo Savitzky: Not all of that translated into revenue growth, when we look at the x-imposed, it was ahead of buildings.

Rodolfo Savitzky: Part of that was a play to reduce a little bit the front end margin to accelerate the volume growth.

Rodolfo Savitzky: So, all you know, we see the development in Microsoft as quite healthy, consistent resource quarter and quarter as we communicate in the mid-single digit.

Rodolfo Savitzky: And thank you very much.

Christian Bader: The next question comes from Christian Bader from ZKB, please go ahead.

Christian Bader: Yes, good morning gentlemen.

Christian Bader: I have three questions please.

Christian Bader: Firstly, what is your amount of interest income and interest expense?

Christian Bader: Okay, so that's a very specific question.

Christian Bader: Maybe I have two.

Christian Bader: I think part of that you can see in the casual statement right, because of course this is something we report.

Rodolfo Savitzky: Let me follow up separately with you Christian.

Christian Bader: Okay, all right.

Rodolfo Savitzky: Okay, then secondly, what do you expect in terms of networking capital development for the second half of the year?

Rodolfo Savitzky: Yeah, so look, the networking capital is very secretive.

Rodolfo Savitzky: When you look at the graph, it's absolutely clear that the level in the half year, like June, is very different from the level we see in December.

Rodolfo Savitzky: And here you do so actually we had a negative connection capital of December.

Rodolfo Savitzky: So we expect a similar level as in December 23 to have in December 24.

Rodolfo Savitzky: All right, okay.

Christian Bader: And finally, what is your amount of factoring?

Rodolfo Savitzky: It remains constant at the round.

Rodolfo Savitzky: It's below 200.

Rodolfo Savitzky: Okay, all right.

Christian Bader: Thank you.

Unknown Executive: Once again, to ask a question, please press star followed by one.

Vinay Bardee: The next question comes from Vinay Bardee from Cantor Fitzgerald.

Vinay Bardee: Please go ahead.

Vinay Bardee: Morning, Jens.

Vinay Bardee: Just one question on your go-to-market restructuring expenses for the full year.

Vinay Bardee: I think I see 14 million for the half year.

Vinay Bardee: Can you give some guidance for the remainder of the year, please?

Rodolfo Savitzky: Yeah, we expect a similar level.

Rodolfo Savitzky: The mix will change.

Rodolfo Savitzky: You of course cannot see inside the components of the mix.

Rodolfo Savitzky: Of course, part of the 14 million you see in age one is expenses associated with the advice of supporting us on the program that will be faced down during the second half.

Rodolfo Savitzky: And of course, you will see the full reorganization impacting in the second half.

Rodolfo Savitzky: But we expect a similar impact and that should be 40 of the and I would just also add that our focus as an organization when it comes to the Golden Market transformation is growing our market share and growing our wallet share.

Rodolfo Savitzky: That means having the right coverage model both in the sales and pre-sales perspective, we talk a lot about the digital sales of the SME segment and that is an investment that we're making where we certainly expect to see it pay off.

Rodolfo Savitzky: But already we are seeing a payoff in terms of the investments that we're making at the top of the pyramid in terms of our enterprise and our corporate customers.

Rodolfo Savitzky: And this is the second quarter in a row where we are called at the large wins that we have had in North America.

Rodolfo Savitzky: And I expect based on the progression of our pipeline in Q3 that we will see seeing a similar result in Europe or what.

Rodolfo Savitzky: And maybe just do a final comment on that topic because I think it's an important one.

Rodolfo Savitzky: When we look at the evolution of our sales expenses as such, we expect them to be either in line or slightly below the current level.

Rodolfo Savitzky: Also, this program as such does not translate into higher cost but rather in net productivity.

Rodolfo Savitzky: But even more importantly, as Brian also mentioned, the biggest value is in the growth acceleration and real improvement in productivity as measured by sales per empty and here also as indicating one of the graphs.

Rodolfo Savitzky: We expect already in age two as significant acceleration of productivity as measured by sales per empty.

Rodolfo Savitzky: So it's a program with a very high rate of return.

Unknown Executive: Understood.

Unknown Executive: That's very clear.

Unknown Executive: And sorry, I may not have caught the beginning of the Q&A session but just on the progression of the go to private transaction.

Brian Duffy: So I mean, since the new board has come in, you've had sort of five, five, four to five months to take a look at the sort of advances that you've received.

Brian Duffy: I mean, what is it that's sort of taking a longer time than expected in order to sort of reach, reach an agreement and I know you've sort of referenced the deteriorating environment and I think potentially that reduces the probability of deal completing.

Brian Duffy: But I mean, just wanted to get your sense on, you know, why it's taking longer than expected.

Brian Duffy: Well, firstly, I've been named a board, joined us in the new board, joined us in a qualifying program, the transaction committee was established in many, which we communicated to with our Q1 or those.

Brian Duffy: And the boards have then received interest, made through the end of June.

Brian Duffy: And now in the summer months, we have a disclosed received indicative offers and the board is in discussions with each of those parties that have submitted offers.

Brian Duffy: And so I don't think necessarily that it has taken so long when we really looked at the timeline here.

Brian Duffy: But as we also said, when there is an update to provide specifically on this, the board certainly will be providing that in due course.

Unknown Executive: Understood.

Unknown Executive: Thank you very much.

Unknown Executive: Claugingly Martin.

Unknown Executive: Great, well thank you everybody for joining, we appreciate you taking the time and have a great day.

Unknown Executive: Thank you very much.

Unknown Executive: [inaudible][inaudible]